Thank you very much, Mr. Chair.
Thank you for the opportunity to represent the Food, Health and Consumer Products of Canada food manufacturers today.
Food security is not only about what Canada grows; it's about whether we can process, package, move and supply the food Canadians rely on every day. Just as Canada views energy, transportation and telecommunications as strategic infrastructure, we should view food manufacturing capacity as central national infrastructure that underpins food security, economic resilience and affordability. At a time of affordability pressures, tariff uncertainty and global supply chain disruptions, strengthening domestic food manufacturing is essential to jobs, investment, innovation, resilience and food sovereignty.
Food security is also a productivity issue. Canada's challenge is not weak firms or complacent workers. It's an investment and scale problem. Business investment per worker remains significantly below that of the United States, reflecting higher operating costs, regulatory complexity and investment uncertainty.
When multinational companies decide where to place the next production line, automation project or processing facility, Canada is competing for capital. If Canada is slower, more expensive, less predictable or less aligned with major trading partners, that investment will go elsewhere.
At the same time, many Canadian small and mid-sized manufacturers face enterprise-level regulatory obligations, and access to capital is increasingly challenging. This “missing middle” limits their ability to scale, compete and supply Canadians with affordable products year-round.
We're already starting to see the consequences. More than half of many centre-store grocery products are now imported, primarily from the United States. The manufacturing capability still exists in Canada, but the investment environment does not consistently encourage expansion.
Without change, Canada risks becoming more of a distribution market than a manufacturing economy, leaving Canadians increasingly dependent on foreign production for everyday food products. If we want a more resilient food system, greater affordability and stronger domestic production, there are three actions Ottawa can take.
First, put capital behind domestic manufacturing capacity. Canada needs a domestic food processing fund that supports modernization, automation, facility expansion and equipment upgrades across the manufacturing sector. Funding should support the full manufacturing ecosystem. Large manufacturers anchor regional supply chains, while mid-sized manufacturers are often the most structurally constrained. Both are essential to Canada's food security and economic growth. Strategic investment in processing capacity would strengthen Canada's ability to produce more food at home, improve productivity, create jobs and help stabilize food costs for Canadian consumers.
Second, modernize regulation without compromising safety. Canada's food safety system is a competitive advantage and a source of public trust. No one is asking the government to lower our standards. However, regulatory systems must be faster, more predictable, better aligned with trusted trading partners and more attentive to cumulative costs. Food security and affordability depend not only on safe food but also on a regulatory system that enables innovation, investment and timely access to products and technology. Expanding the Canadian Food Inspection Agency's mandate to consider economic competitiveness and food security alongside safety is a step in the right direction.
Third, strengthen the supply chains and workforce that food security depends on. That means investing in transportation infrastructure, improving trade corridor efficiency and reducing bottlenecks that increase costs and delay the movement of food across our country. It also means maintaining access to skilled workers through agricultural labour programs and creating stronger pathways to permanent residency for experienced workers in year-round agri-food occupations.
Local purchasing initiatives only succeed when there is sufficient local capacity to support affordable products. The best way to support local purchasing is to help Canadian manufacturers invest in their workers, expand production and move their goods efficiently to market.
Canada does not need to choose between global trade and local resilience. We need both: integrated North American supply chains and a stronger domestic manufacturing base that captures more value here at home. Food security will be achieved through investment, productivity, modern regulation, efficient supply chains, skilled workers and a whole-of-government commitment to strengthening Canada's agri-food economy.
The investment decisions that will shape Canada's food system for the next decade are being made right now. Too often, Canada is not winning in those decisions. At FHCP, our members want to build here, hire here and innovate here. They want to supply Canadians from Canadian facilities, but investment follows certainty. If Canada wants stronger food security, greater affordability and a more resilient economy, we must make this country one of the best places in the world to manufacture food.
Thank you, and I look forward to your questions.
