Good afternoon. Thank you for the opportunity to speak about the Canadian bison industry, the challenges our sector faces and the importance of effective business risk management programming for agriculture.
The CBA represents bison producers and industry partners from across Canada. The Canadian bison industry is a uniquely Canadian success story. What was once a species on the brink of extinction has become a sustainable livestock sector that contributes to quality food production, rural economies, indigenous partnerships and environmental stewardship. Canadian ranchers have played a massive role in bringing back the bison, and together with marketers and industry partners, they have created increasing demand for the low-fat, high-protein, delicious meat.
As a keystone species, bison production also aligns well with environmental and grassland conservation goals. Bison utilize native grasslands effectively and efficiently, support biodiversity and are well adapted to Canadian agriculture.
Canada is recognized globally for producing high-quality bison genetics and premium bison products. Bison meat is more available to the Canadian consumer than ever before. Last year Canadian federal plant processing increased to the highest volumes in over a decade, which resulted in a decrease in animals going live across the border—the U.S. being the largest bison market in the world.
Despite its strengths and positive developments, it also faces several ongoing challenges.
Two years ago, 80% of marketed animals went to the U.S. That reduced last year, as I said, with the increase in.... Processing here in Canada was reduced to about 50%, but the U.S. will always be our largest market. As such, trade impediments to the U.S. would create significant challenges to the industry. Other than the EU, Australia and the U.S., we lack export markets. We would appreciate a small mindset change when trade negotiators are working on other markets to include bison in the red-meat discussions. Quite often we hear about the expansion of beef into different sectors and different countries, and it would be great if we just changed our phraseology a little bit to include bison.
At the same time, a number of factors have contributed to a reduced supply, so we're challenged a bit in that regard. Farmers are retiring, and consolidation is happening. A number of years of drought have contributed to the sell-off of animals. Bison live on pasture, sometimes up to 365 days a year, and bison ranchers are typically low-cost producers and don't typically buy feed. Demand has outstripped supply. To be frank, we need more bison.
Another challenge is that because the industry is relatively small, it does not always fit neatly into agricultural programs and policies that were primarily designed around larger commodity sectors. This can leave bison producers underserved and overlooked.
The sector faces market volatility. Bison production cycles are long, and rebuilding herds after downturns can take years. Producers cannot quickly increase production in response to market demand the way some other livestock sectors can. At the same time, as mentioned, the industry remains heavily dependent on export markets and vulnerable to disruptions in international trade, transportation and consumer demand.
There is also tremendous opportunity. Consumer demand for meat continues to grow, particularly amongst consumers seeking nutritious, sustainably raised protein. With the right support and policy environment, the Canadian bison industry can continue to expand and contribute to Canada's agricultural economy.
That brings me to business risk management programming. When you talk to producers, the one that comes up most quickly is AgriStability. These programs are critically important tools for agricultural producers, including bison producers. Utilization amongst our producers is low, though, due to ongoing concerns regarding accessibility, predictability and effectiveness for sectors like ours.
Again, bison production differs from many other livestock sectors, because of longer production timelines, smaller herd numbers and unique market structures. As a result, some BRM program calculations and reference margins do not always reflect the realities of bison operations. Producers can experience significant losses before support is triggered, and payments often arrive long after the financial damage has occurred.
The CBA encourages government to continue improving AgriStability so that it is more responsive, bankable and reflective of actual risk. Timely interim payments, simplified administration, and program design that recognizes our sector would be greatly appreciated and would improve confidence.
Also, livestock price insurance is not available for bison, as it is for our friends in the cattle industry. Our understanding is that this is because of limited pricing data for bison. While we don't have a futures market and the resources for sophisticated pricing models, we have seen, actually, that bison and beef prices are highly correlated. They move in similar directions at similar times, particularly in recent years. We wonder if there are opportunities to work with some of that data to support price insurance.
In closing, the Canadian bison industry is resilient, innovative and deeply connected to Canada's rural and environmental landscape. Our producers are committed to supplying high-quality food while stewarding the land for future generations. With practical policy support, fair access to risk management programs and recognition of the unique nature of our sector, the Canadian bison industry can continue to grow and contribute to Canada's agricultural success.
Thank you for the opportunity. I look forward to questions.
