Agriculture Committee on Sept. 22nd, 2025

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

I know there has been a lot of talk about securing new trade deals with the Asian Indo-Pacific region. In the committee of the whole—I believe it was June 10—I asked the Minister of International Trade what countries we're currently looking at expanding our trading relationships with, and he said that they had concluded negotiations with Ecuador and Indonesia.

I sent an inquiry to the Minister of Agriculture asking which countries we are directly dealing with and what the proposed export values are that we will be receiving. The answer was that there is no response to the question I asked. I was just wondering if you could clarify that.

[Tom Rosser]

Chair, perhaps I can offer an initial reply, and I should preface it by saying that I'm not specifically aware of the inquiry to which he refers.

It is true that negotiations were concluded with Indonesia and Ecuador in recent months. The next steps will be the signature and ratification of those treaties, which will involve a parliamentary process. I'm quoting from memory, but my recollection is that Indonesia is already about a $2 billion per year export market for Canada's agri-food industry. It may be difficult to estimate precisely by how much that will increase once the trade agreement comes into force, but it certainly will materially improve market access for a number of different agricultural products.

[The Chair, Liberal, Michael Coteau]

We'll stop there. Thank you very much. We'll go to the final five minutes in this round.

MP Dandurand, you have five minutes.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you, Mr. Chair.

I'm happy to be here. My constituency has a huge amount of agricultural production. I'm glad to have this opportunity to hear your comments on our international trade situation, because a significant portion of our agricultural production is exported by necessity. Since Canada is such a major producer, its population obviously can't consume everything produced. The country is a breadbasket for the world. We have sustainable and high‑quality agriculture, which is truly a source of pride.

I would like you to talk a bit about the pork sector, because this sector is affected by Chinese tariffs. My constituency has about 60 pork producers. We also know that about 80% of our pork production is exported. I believe that 25% of this amount goes to China. This raises serious concerns about how to replace this market. Moreover, certain cuts of meat are generally consumed only in China.

How can we improve the situation or diversify our markets? Who can we focus on? Do programs such as AgriMarketing really help to open up new opportunities for Quebec pork producers, for example?

[Tom Rosser]

Thank you for your question.

You're absolutely right to say that China remains a significant market for Canada's pork industry. This market also offers value for certain pork cuts that are much less valuable in other markets. It's a challenge to replace China. That's why we established an office in Manila. This office will give us the chance to help the agri‑food sector tap into other markets in the Indo‑Pacific region.

It's also true that the pork sector receives significant funding from the AgriMarketing program. Increased program funding will create opportunities to expand this sector's efforts abroad.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you.

You spoke about Canada's Indo‑Pacific strategy. I believe that it was launched in November 2022. Since then, Agriculture and Agri‑Food Canada's first Indo‑Pacific office has opened in Manila.

My question is for the officials from the Department of Foreign Affairs, Trade and Development.

Can you provide an update on how everything is working? What results are you seeing? Which agricultural sector, particularly in Quebec, could benefit from the Manila office?

[Christine Moran]

Thank you, Ms. Dandurand.

The office is there for all producers.

It's completely agnostic, and we are seeing good success in value-added processing, for example.

As my colleague notes, there's a particular interest in looking at new markets and replacing those markets, but also in taking advantage of the trade agreements that we've implemented. The bureau, in a very short period of time, has supported a lot of activity. I believe there will be a report issued very shortly on the recent implementation of the strategy, which will point to some of those successes, not only in the grains and oilseed sector but in meat, value-added processing, etc.

One of the things that office allows us to do by having that presence on the ground is to maintain a very consistent dialogue with importing regulators and to marry up a lot of other activities related to trade shows, conferences and multidisciplinary discussions to allow Canadian excellence in agriculture to shine.

We're seeing some very good success. I think our colleagues in other departments are looking at the successes of that office as an opportunity for other sectors too, because it is working.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you.

Mr. Rosser, I would like to know how the Department of Finance has helped agricultural producers deal with tariffs up until now. Please keep your answer brief.

[Tom Rosser]

We've already discussed this. Many programs focus directly on the canola sector. Changes have also been made to risk management programs. Lastly, in general, there are programs for companies affected by tariffs. These programs don't focus directly on the agri‑food sector.

[The Chair, Liberal, Michael Coteau]

Thank you very much, everyone.

Thank you to our witnesses for joining us today. We appreciate it.

I'd like to end now and take a few minutes to suspend to get everyone queued up for the next round. Then we'll go until about 5:40, if that's okay with folks.

Thank you.

[The Chair, Liberal, Michael Coteau]

Welcome back, everyone.

We have, I believe, eight different organizations joining us today. I want to keep time for the members to ask questions, so I'd like to go for an hour until a quarter to six, if that's okay with everyone.

I did say originally that each organization had three minutes. I'm going to cut it to two and a half minutes per presentation. Rather than pointing out the exact person—I know some groups have two or three people—I'll just say the organization, and you decide how you're going to split that time among you, the two and a half minutes.

We'll start with the Canadian Canola Growers Association.

Welcome.

[Rick White, President and Chief Executive Officer, Canadian Canola Growers Association]

Thank you very much, and thank you for the invitation to be here today.

My name is Rick White, and I'm the president and CEO of the Canadian Canola Growers Association. CCG is the national association for Canada's 40,000 canola farmers and represents them on issues, policies and programs that impact their farms' success.

Canola is a strong economic contributor to family farms and our rural communities. In 2024, canola continued to be the number one source of crop revenue for our farmers, earning $12.9 billion and accounting for 25% of their total crop receipts. Annually the canola sector contributes $43.7 billion to the Canadian economy and provides for 200,000 jobs. I cannot overstate the importance of this issue to canola farmers and the uncertainty that's been cast over farmers' ability to market their 2025 canola crop, which they are still currently harvesting as we speak.

With 90% of our canola exported as seed, oil or meal, canola farmers rely on international trade for their farms' viability. China is our largest market for canola seed, our second largest market for canola meal and, at times, a very important market for canola oil. In 2024, Canadian exports of canola seed, oil and meal to China were valued at approximately $4.9 billion.

The loss of any market is a concern. The loss of our second-largest market and our largest seed market is of particular concern, so what do farmers need? Of most urgency to the entire canola industry is to get the market in China reopened again. That's what we need. We're encouraged by recent engagement with our industry at the highest levels and the efforts by both federal and provincial government officials to engage in China and with China. However, if the market cannot be reopened in the very near term, government needs to be prepared to compensate canola farmers in a manner that is commensurate with the losses they have incurred from the market closure with China. In addition, the government can support the canola industry's efforts to diversify. For example, market diversification in the form of biofuel is a long-standing policy priority of the canola industry.

Beyond the challenges with China, we're highly attuned to the upcoming CUSMA review with the U.S., because the U.S. is our largest market. Underscoring the uncertainty canola farmers are feeling right now is the fact that the United States and China represented about 87% of our total canola export value in 2024. Without a doubt, canola farmers' profitability is linked to our trade relationships with both the U.S. and China.

[The Chair, Liberal, Michael Coteau]

I thank you so much, and I really appreciate your being here today.

I'm going to go to the Canadian Cattle Association for two and a half minutes.

[Tyler Fulton, President, Canadian Cattle Association]

I'll try to be brief here. Thanks for the opportunity.

My name is Tyler Fulton. I am a beef producer from Birtle, Manitoba. I am currently serving as the president of the Canadian Cattle Association.

Through our provincial members, we represent about 60,000 beef producers. In total, the Canadian beef industry contributes about $34 billion annually to Canada’s GDP and supports about 347,000 full-time jobs.

The North American beef sector is highly integrated. To give you an example, you might have a calf that is born in the United States, raised in Canada and then shipped back to the United States for processing, or vice versa. This integration has built supply chains that are not only efficient but resilient. They are benefiting producers, processors and consumers in both countries.

I can give you more examples on integration. A critical factor behind our integrated success is the unlimited duty-free access for Canadian and U.S. beef established under the 1989 free trade agreement, carried forward through NAFTA and now CUSMA. Cattle and beef flow in two directions over the border without the impediment of tariffs.

We did get a brief experience with the U.S. tariffs in March before the USMCA compliance exemption was announced. The tariff cost $40,000 per load of cattle and added up to $800,000 for one producer alone in two days. The total annual tariffs collected would have cost the industry $500 million and likely driven Canadian cattle prices down by about 15%.

Most critically, the U.S. is the most important market for the cattle industry. While diversification is also a critical part of export-driven sectors, it's important to realize that all other markets combined cannot replace the U.S. market for our industry, given the integrated supply chains.

We are expanding trade into Asia. We are very optimistic about the growth potential for high-quality grain-fed beef in the Indo-Pacific region. In particular, Japan and Vietnam are some of the fastest-growing markets. We've benefited from the CPTPP agreement, which has provided preferential access. South Korea has the potential—

[The Chair, Liberal, Michael Coteau]

I'm going to stop you there. I'm sorry about that.

Next, I'm going to go to the Canadian Meat Council, for two and a half minutes.

[Sylvain Fournaise, Vice-Chair, Canadian Meat Council]

Good afternoon.

Thank you for your invitation.

I'm representing the Canadian Meat Council, where I'm the vice‑chair. I'm also a vice‑president at Olymel.

As you know, the Meat Council represents many meat processing establishments, which all hold federal licenses that allow them to export.

As one of the largest companies in the food-processing sector, we have annual sales of more than $32 billion and support nearly 300,000 jobs nationwide.

Our members process over 90% of Canada's beef and pork. We represent members involved in exports.

American tariffs are having a significant impact on the Canadian red meat industry. The United States receives approximately 50% of our exports. The North American meat industry is one of the most globally integrated industries. It accounts for nearly $16 billion in sales and trade with other countries.

China remains a significant, unique and strategic market. In the past five years, this country accounted for 20% of Canadian pork exports. The volume of exports and access to the Chinese market have been unstable.

Canadian beef has been largely shut out since 2019. Before the ban, China was Canada's fifth‑largest beef market, worth nearly $100 million annually.

For pork, the 25% tariff continues to erode Canadian competitiveness, reducing processor margins by an average of $8.80 per hog. This amounts to nearly $177 million in annual losses for our sector. In addition, we bear these direct costs because of trade disputes related to support for other industries.

For Olymel alone, tariffs are projected to reduce profits by $17 million in the 2025 fiscal year. If current conditions persist, the impact could grow to $30 million for the 12 months of 2026.

These tariffs come at a time when the fresh pork sector is already facing significant challenges. As a result, we risk delaying planned investments. Ultimately, we may be forced to make difficult decisions to limit our losses. The amounts resulting from the imposition of tariffs are drawn directly and solely from the pockets of processors.

As you can see—

[The Chair, Liberal, Michael Coteau]

I'm sorry, but I'm going to stop you there, sir.

I'm sorry that I'm rushing folks. We had lots of people who wanted to come out and make deputations and be witnesses today, so I'm trying to fit everyone in here. The most important part will be the questions directed to your sectors, where you can provide even more information. I appreciate your patience.

We'll go to the Canadian Pork Council.

[René Roy, Chair, Canadian Pork Council]

Good afternoon.

Mr. Chair, thank you for this invitation.

I would also like to thank all the committee members for letting me work with them on this issue.

My name is René Roy, and I'm a pork producer in Quebec and the chair of the Canadian Pork Council.

Let me give you a quick summary of three tariff impacts in our sector, impacts we have felt in direct and indirect ways.

First, China has imposed a 25% tariff on pork products, and that loss has impacted producers and processors. Tariffs introduced from the U.S., although brief for our products and our live animals, also had an impact. We continue to work through the accounting for that with both the federal and provincial governments.

Second, our producers are paying more for some inputs and for farm machinery, among other items, because of tariffs on inputs such as aluminum, steel and other products. Indeed, producers on both sides of the border are paying for these measures.

Third, and perhaps having the largest impact, is the uncertainty that has been created for future investment. It is difficult for producers to plan for the future if they can't know the rules of engagement in advance. That's why we're asking the government to negotiate a fair and free CUSMA, so we can understand the business environment we will live in and benefit from it. We also want to recognize the federal government's commitment to provide some measure of support by increasing, notably, AgriMarketing, although we believe that additional support will be required.

Some producers are currently in Japan today. We are continuing to make sure that we diversify our market. Japan is today our largest customer, because we have changed the way we proceed with our industry. As you are aware, we are exporting about 70% of our pork products around the world. Trade is certainly of major interest to us and has significant tactical and strategic impacts for us.

Thank you. I'm willing to answer your questions.

[The Chair, Liberal, Michael Coteau]

Thank you very much. I appreciate that.

The Canola Council of Canada is next.

You have two and a half minutes.

[Chris Davison, President and Chief Executive Officer, Canola Council of Canada]

Thanks very much.

My name is Chris Davison. I'm the president and CEO of the Canola Council of Canada.

The council is a national value-chain organization, representing approximately 40,000 canola farmers together with exporters, processors and life science companies. Our industry, as you heard a few minutes ago, represents $43.7 billion in direct, indirect and induced economic activity annually and supports over 200,000 jobs across the country and $16 billion in wages. Canola also represents one of the largest and main sources of farm cash receipts.

International trade is critical to the success of the industry. The vast majority of canola products are destined for international markets, with exports totalling $14.5 billion in 2024.

As you know, we are currently shut out of our second-largest export market, China, which represented $4.9 billion in export value in 2024. This is the result of an anti-discrimination investigation, which led to 100% tariffs on Canadian canola oil and meal in March of this year, followed by a preliminary anti-dumping duty of 75.8% on canola seed announced this past August. China's anti-dumping investigation is ongoing and has recently been extended until March 2026.

While it is still relatively early in terms of the imposition of these tariffs, removal of a demand signal of the magnitude of China has widespread impacts on the industry, starting at the farm gate and extending across the value chain. Farmers, as you heard, are currently harvesting this year's crop and face an uncertain future. What will their marketing options be for this year's crop? What price will they receive if these tariffs remain in place for an extended period of time? What are the implications for cash flow and their ongoing farm operations?

The uncertainty and unpredictability farmers are facing extends to the full canola value chain, including processors and exporters, whose infrastructure and assets are not being fully utilized. This is not cost-neutral in terms of its impact. It is cost negative, and it comes at a time of significant investment by the industry, including to significantly increase domestic canola-processing capacity.

While we are fortunate that Canadian canola and canola products have a very strong reputation and that there are other markets that want what we produce for a variety of reasons, they cannot be expected to make the Canadian canola industry whole in terms of volume or value as a result of the demand signal that has been lost with the closure of the Chinese market.

Thank you.

[The Chair, Liberal, Michael Coteau]

Thank you very much. You had 30 seconds to spare. I appreciate that.

From Food and Beverage Canada, we have Ms. Farrell.

[Kristina Farrell, Chief Executive Officer, Food and Beverage Canada]

Thank you.

Food and beverage manufacturing is Canada's largest manufacturing sector and largest manufacturing employer, employing more than 318,000 Canadians. When we're talking about this industry, we're talking about the livelihoods of hundreds of thousands of families and the stability of food supply that Canadians rely on.

The biggest challenge for us today is unpredictable access to our most important market—the U.S. Roughly 80% of Canadian agri-food exports go south of the border. Our supply chains are so tightly integrated that even small shocks cascade quickly. While we appreciate the government's efforts, many existing programs to support our industry still miss the mark. Too often these programs are narrow in scope, slow to deploy and too complex for small companies to take advantage of, or they exclude companies that are integral to our supply chains in their criteria. This leaves many manufacturers without meaningful support.

We were pleased to see the domestic processing fund in the Liberal Party's platform. However, respectfully, $200 million is simply not enough dedicated support for Canada's largest manufacturing industry. For many companies, annual operating costs go into the millions of dollars, meaning that this fund risks being oversubscribed quickly. Similarly, the regional tariff response initiative is a step in the right direction, but its restriction to companies with fewer than 500 employees excludes many of the larger manufacturers that anchor Canada's domestic food production capacity.

Given the investment needs of our industry and the gaps in current programs, we're hopeful that the newly announced strategic response fund will prioritize our industry and companies big and small. Supporting this industry is critical not only to Canada's food sovereignty but also to enabling us to compete with imports, diversify our export markets and seize new international opportunities.

We agree that market diversification is important, but strengthening domestic competitiveness must be part of this strategy. This means tackling key structural challenges—labour shortages, by extending expiring work permits, ensuring pathways to permanent residency and ensuring our access to the temporary foreign worker program; and regulatory burdens, by reducing duplicative or outdated regulations that cause unnecessary costs and delays—providing capital investments and supports, and avoiding new sources of domestic uncertainty, such as ensuring that food is exempt from Bill C-5.

A competitive domestic processing industry is the foundation that allows Canada to add value to its primary agriculture, to supply quality and affordable food to Canadians and to withstand trade disruption. Without it, we risk losing capacity, jobs and resilience.

Thank you.

[The Chair, Liberal, Michael Coteau]

You had 10 seconds to spare. Thank you so much. I appreciate that.

Next is Mr. Cherewyk from Pulse Canada.

[Greg Cherewyk, President, Pulse Canada]

Good afternoon, Mr. Chair and members of the committee. Thank you for the opportunity to appear today on behalf of Canada's 26,000 farmers and over 100 companies that are part of the Canadian pulse industry.

Canada accounts for close to one-third of the global pulse trade. Upwards of 85% of what we produce is exported. Put simply, our sector does not work without open access to international markets. The 100% retaliatory tariff imposed by China has had a profound consequence on the Canadian pulse industry. China has been a critical market for us since the mid-1990s. After India restricted its imports in 2017, China emerged as our largest buyer.

Over decades, the work of farmers and the trade transformed this market from a 20,000-tonne market to one of over two million tonnes. Over the past five years, we've shipped 3.7 billion dollars' worth of Canadian peas to our customers in China. Because of that work, customers have a strong preference for Canadian peas. However, the 100% tariff is too much for them to absorb. They're being forced to look to our competitors in the Black Sea region.

The reality is that this business will not be easily won back. While we often hear that the industry will have to diversify, let me be clear: There is no ready alternative that can replace sales of this scale. Creation of entirely new demand takes years.

Since the tariff was announced, the price of yellow peas has fallen 43%, and 50% for greens. These low prices, combined with slow movement and no other readily available markets, have translated into an estimated net loss at the farm gate of $637 million. This figure worsens every day. For many growers, that means the difference between breaking even and falling into the red. Companies who invested in facilities that process one of Canada's biggest pulse crops now face uncertainty about throughput. Support measures in the form of loans are really not the answer.

Imagine, Mr. Chair, taking a 50% pay cut at your job only to be offered the chance to take out a loan to make up the shortfall. Our farmers would stress to you that they want the emphasis put back on getting their market open. Canada's pulse industry can no longer afford to be collateral damage in a dispute that has nothing to do with the products we produce. The idea that farmers can grow something else and sell it somewhere else betrays a lack of understanding of Canadian agriculture and the markets it serves.

The pulse sector is resilient, and we are committed to our role as a trusted supplier of high-quality, sustainable food, but we cannot do it alone. To be effective, we need government to champion a trade policy that safeguards the livelihoods of Canadian farmers.

Today we ask Parliament and the Government of Canada to act with greater urgency, to restore access and to put agriculture back on stable ground.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

Our last presenter, from the Union des producteurs agricoles, is Mr. Caron and David Tougas, I believe.