Agriculture Committee on Sept. 22nd, 2025

[Martin Caron]

I can talk about Quebec, but I can also talk about Canada. We need financial support that reflects the difficulties we're currently experiencing. We would greatly appreciate any financial support for beef production. We're currently in a position to have a vision for our production's export. That's what we're seeing across all sectors.

Our exports have increased by 57% over the last 10 years, since 2014. However, we need an action plan on diversification. The government should really make the entire food sector a national priority and continue to increase those exports.

Doing so requires a tool, an action plan, accompanied by investments. That would enable us to meet the needs caused by climate change and all the issues related to animal welfare.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Okay. Thank you very much.

Are you also concerned that canola producers, for example, will diversify their production, meaning that they will reduce their canola production to do something else? That was actually discussed in the first hour of the meeting; there was an interesting analysis on the world price.

I invite Mr. White to answer that question after you, Mr. Caron. I'd like to hear your comments on that.

[Martin Caron]

That's right.

When the agricultural businesses in our remoter areas diversify, that creates added value while also making it possible to meet the objectives that Canada set for itself on the international stage at the 16th Conference of the Parties to the United Nations' Convention on Biological Diversity, or COP16. For that reason, it's a good thing to support that diversification.

The same is true when it comes to organic products, which you also talked about. We need support for those markets, which also have to diversify because of what's happening in the United States and because it isn't that simple to find new markets. We have to be able to support businesses.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you.

Mr. White, do you have anything to add about the culture change your members are experiencing? Does that worry you?

[Rick White]

Yes, I could probably add a bit.

In terms of the advance payments program for farmers, especially canola farmers, the increase of the interest-free amount from $250,000 interest-free to $500,000 for canola farmers specifically, I think farmers in the short term will appreciate that, but it's not the right tool if this ends up to be a protracted crisis. That loan has to be paid back in September next year. It may buy some time and it may decrease some of the interest on it, but it's still a loan. That $500,000 is still going to have to be paid back, and that's where the issue is.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you.

I'd be remiss if I didn't get to Ms. Farrell before my time ran out.

I spoke earlier about the agri-food world. We often talk about what we produce, but we have to process what we produce.

What are your needs right now? What message do you have for the government?

[Kristina Farrell]

My message today is that, as Canada's largest manufacturing industry, we need to be able to resource it and support it sufficiently, and I don't feel that we have to date. That's not just financial support. It could also be helping us address some of the regulatory burdens that we have under way and working with us to address our labour shortages as well. I hope that's the message I can leave behind today.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

How do we encourage investment in your sector? Are there ways?

[Kristina Farrell]

It's certainly giving us access to existing programs that have recently been announced. I think one of our concerns is that we aren't typically seen as one of the sectors needing investment or where we can really attract global investment as well, so it is working with industry. I think industry has a lot of ideas as to the types of programs that would be helpful to us. Existing programs to date don't really work for us. One example is the strategic innovation fund. Only one food and beverage manufacturing company has ever been successful in accessing that fund, so I think it's working with us to make sure that our existing funds and programs meet the needs of Canada's food and beverage manufacturing industry.

[The Chair, Liberal, Michael Coteau]

Thank you very much, Mr. Perron.

We have roughly 18 minutes left until we said we were going to end the meeting. We do have another round. The next round will take 22 minutes. Can we just do the one round and then we'll end there, or is there a desire to go an extra round?

Go ahead, Mr. Barlow.

[John Barlow, Conservative, Foothills, AB]

I'm wondering if I can suggest, and I appreciate it, that, because this issue is so important, we do the one round and then every party gets a two-minute last third round. We'll just to try to keep it quick. I know we'll get close to six o'clock, but I think this is an important issue. Is everybody okay with that?

[The Chair, Liberal, Michael Coteau]

Yes, so we'll do the final round. We'll do two, two and two, if that's fair.

Are you okay with that? You have a bonus at the end. Great.

Go ahead, Mr. Barlow.

[John Barlow, Conservative, Foothills, AB]

Thanks, Chair.

Mr. White, you mentioned in your answer to a previous question that it's important that you have, on the fuel standard, domestic supply—and I think you're carefully choosing those words—and that not much is happening yet. In fact, you have the biodiesel refinery in Hamilton closing, and the reason they were closing was the flood of cheap seed stock and biodiesel from foreign countries, such as used cooking oil, soybean and corn from the United States.

The reason that we oppose the Liberal fuel standard is that it adds 17¢ a litre to Canadian consumers, so it's another consumer carbon tax. It is also one of the most complicated pieces of legislation in our history, and the regulatory red tape has made it impossible for Canadian canola growers and Canadian biofuel growers, let's say, to compete with cheaper foreign stock. Is that a fair assessment—that the system, the way it is set up now, is not going to benefit Canadian canola growers?

Have you done an assessment of the impact? Will this be a financial gain? Have you done that analysis for Canadian canola growers as the system is now?

[Rick White]

For financial gain, to be honest, we need to tighten up some of these things. It's not just about the clean fuel standard. It is about foreign UCO coming in and displacing Canadian canola feedstock. Both of those things need to be fixed before a biofuel industry can take root, and what we're looking for is to increase domestic demand.

In terms of taxation, there are things the government could do. Detax the renewable component for diesel fuel, for example, to help soften the blow if there are concerns about price increases. I'm not sure about the 17¢ a litre thing. I haven't done those calculations, but at the end of the day, if you detax it, it'll soften the blow for consumers.

For farmers, though, it's about 2.5 million tonnes of seed demand. If we can get this right, we can deal with the foreign UCO and get the regulations right to stabilize the investment environment for those investments to be made and to stay. They need a clear signal from the government that these regulations are right and they're long-term.

[John Barlow, Conservative, Foothills, AB]

Thanks, Mr. White.

The Parliamentary Budget Officer's analysis was 17¢ a litre as a result of the fuel standard, so that fact is there.

I'd like to give the rest of my time to Mr. Bonk.

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

My question is for the Canadian Cattle Association.

After many years of a tough slog in the cattle business in Canada, it's turning out to be a bit of a bright spot in Canadian agriculture at the moment. However, the numbers you mentioned in your opening preamble from the brief period of time when the tariffs were applied to the cattle industry send a chill through every cattle producer in Canada.

Could you talk about the overreliance we have on the American market? I know it's a very integrated market, but could you speak to how we could add more value in Canada through more feeding capacity or more slaughter capacity?

I'll let you express your thoughts on that.

[Tyler Fulton]

We have a generational opportunity in the cattle business now. It's unlike anything I've seen in my career, and we're the same age, I think, or pretty close to it, Steven. I think it would be fair to say that this is across the country. It's not unique to the west, the east or any part of the country.

There is opportunity in growing the herd. In order for us to do that, we need to see certainty come back into the market, or at least have the government provide some tools that would allow us to gain that certainty. There's an exceptional opportunity, particularly for the cow-calf operations, to grow the herd, start that value chain and really grow that opportunity.

To reference the exposure that the feeding sector, specifically, has to the CUSMA concerns over possible tariffs, for one individual shipping over the course of two days, there was $800,000 in tariff liability. That was one individual from southern Alberta. It represents an existential risk to the feeding sector if we are to experience a long-term tariff from our U.S. counterparts.

[The Chair, Liberal, Michael Coteau]

Thank you so much.

I'm going to the Liberals and Mr. Connors for five minutes.

[Paul Connors, Liberal, Avalon, NL]

Thank you.

I'm going to continue with Tyler for just a bit.

Tyler, keeping in mind that there is an integrated processing system in place with the U.S., which I understand, and some of the non-tariff barriers in the CETA.... I think someone mentioned that there's a 57% increase in exports for the beef industry. I'm not sure if that was strictly for the beef industry or not.

How is the local demand now? Are we seeing an increase in local demand, or are we still heavily reliant on exports?

[Tyler Fulton]

Just to clarify, the beef industry in Canada exports about half of what it produces in either live cattle or beef, and 70% of the portion that's exported is destined for the U.S. It goes there because that's where they are willing to pay the most. That's over and above our domestic consumption.

Domestic demand has been exceptionally good. The consumer has effectively told us that they can accept significant price increases and still want to consume just as much product because they see it as a safe, high-protein source. We're very optimistic about the long-term prospects in the beef industry.

[Paul Connors, Liberal, Avalon, NL]

Just to follow up on that, are there any markets that you would probably see potential in—export markets, of course—that you don't think are being fully explored or investigated?

[Tyler Fulton]

I'll mention three in particular. I never got to the comments on China. We've been blocked out of China since 2021. There was a reference to that by the Canadian Meat Council, I think, briefly. Previous to that closure, our trajectory was growing, and we were more than $100 million in sales a year. Korea represents probably one of the biggest opportunities, but right now, we're at a tariff rate disadvantage to our American counterparts by about 8%. We are on a positive trajectory in Korea as well, but you can imagine that, when there's a beef source of high-quality grain-fed beef that is 8% cheaper, the importers look elsewhere.

Southeast Asia does represent, I think, big opportunities. The first node of the value chain, though, has to grow in order to supply the markets. We just have unbelievable demand around the world right now, and the biggest constraint is that there aren't enough cows.

[Paul Connors, Liberal, Avalon, NL]

I have two minutes left. I'll give you an opportunity. Is there anything else in your comments?

I know you got cut off quickly when we were going through. Is there anything else in your comments that you wanted to mention? I'll give you a little time to do that.

[Tyler Fulton]

I would only say that the cattle industry in particular very much relies on the principle of comparative advantage: free and open trade that is science- and rules-based. That's what should guide any policy decision going forward, because it is the natural advantages that we have here in Canada that support our future growth potential in the beef industry.

[Paul Connors, Liberal, Avalon, NL]

I'm going to ask Kristina from Food and Beverage Canada a question now.

FCC released a new report today that proposed a $12-billion diversification strategy that would reduce U.S. market dependency in food and beverage exports to, I think, 50% of the 2023 levels. What are the biggest barriers Food and Beverage Canada faces in expanding Canada's food exports into new international markets, particularly in Europe and Asia?