Mr. Chair, members of Parliament, good morning.
Yesterday as today, agriculture is one of the main pillars of the Canadian economy. It is also a high-risk activity. Market gardeners must regularly make decisions taking into account farm-gate prices, which are more volatile than ever, increasingly unpredictable weather conditions, and a global market influenced by geopolitical risks and government support provided to producers in competing countries.
The efforts made by local producers to comply with a more restrictive regulatory framework and higher private standards are creating increasingly unsustainable commercial pressure.
As a price taker in the vegetable sector, Canada must continue to invest in programs that strengthen the capacity for proactive risk management in an increasingly uncertain and complex business environment.
Public support for agriculture in Canada remains lower than in many comparable countries. The international average is around 2% of government spending, whereas Canada currently allocates less than 1%. In a context where climate, economic and geopolitical risks are intensifying, this gap is no longer sustainable.
Canada is vulnerable in terms of food sovereignty and fresh vegetables. Ontario and Quebec alone account for more than 80% of production volumes, and this proportion is concentrated in just a few regions. While regional characteristics reflect this reality, they must also be reflected in the range of business risk management programs offered, which must be better adapted to regional realities and market conditions.
Moreover, in the local market, it is important to note that Canadian food retailers have developed business models based on shifting risks and costs onto vegetable growers. Consequently, large publicly traded companies are placing an unreasonable economic burden on family-owned SMEs.
For the period from 2021 to 2023, the profit margin of Quebec producers, both before and after program payments, declined across all categories. The decline is particularly pronounced among small businesses. At the same time, from 2017 to 2023, the debt ratio of Quebec vegetable growers rose from 24% to 27%.