Thank you, Mr. Chair, and dear members. I would like to thank the committee for inviting me to speak about Canada's food affordability situation.
Food supply chain hangovers due to the pandemic and the global impact of the invasion of Ukraine have enticed many to question the global nature of our food system. The entire planet operates under a 90-day production cycle of agricultural commodities. Canada's contribution occurs in the fall, obviously, along with the U.S. and parts of Europe.
About 15% of all calories on earth come from wheat. Corn covers a lot of calorific ground as well. With regard to Ukraine, coupled with sanctions against Russia, our global wheat deficit this year will be a significant challenge, given that 25% of wheat exports come from that region. Also, India's decision today to ban exports of wheat will only make things worse.
We are going to be short on wheat, corn, barley and many other commodities. By the time we are done with 2022, it is likely that more than 100 million more people will experience either famine or acute hunger, something that the world has never seen before.
Canada will be fine, food access-wise, but food will get more expensive. Poor nations will always lose access to their food supply first, while richer nations, such as Canada, will secure food supplies by paying more. Poor countries have no capacity to store calories at all. Germany, typically a big buyer of Ukrainian commodities, stated that retail food prices could increase by as much as 50% this year. Commodity traders are already buying and even hoarding what they can get to secure supplies needed for the next several months.
Canada can and should make a greater difference. Of some of the challenges we are currently facing, fertilizer access is certainly one. These critical inputs for farmers are, on average, about $1,500 U.S. a tonne, which is five times what it was 12 months ago. Farmers need fertilizers to produce crops, but the market is controlled by a handful of very greedy multinationals who supply-manage their products to artificially boost fertilizer prices. Some of these multinationals are actually right here in Canada. Many farmers are paying tariffs on fertilizers right now—and even surcharges. In fact, some farmers right now are purchasing fertilizer without even knowing what the price will be.
We are all paying for years of genetic engineering bashing in the media as well, by groups who have used fear to put forward an organic-centric diet for affluent city dwellers. The approval process of new traits for new crops can take years in many developed countries, including Canada.
Agriculture is and will always be about technologies, and we need to accept that as such. A globalization 2.0 agenda will require getting nations to continue to trade, but it also will require them to adhere to an acceptable humanitarian conduct to participate in a global economy.
Canada should take steps to make the agricultural sector more efficient and productive, and have a strong food self-sufficiency strategy.
The only province in Canada that has already adopted such a strategy is Quebec. Canada needs a way to produce more in an open economy with greater access to affordable prices, while growing the agriculture sector through sustainable trade.
A comprehensive strategy would include sustainable water and renewable energy practises to support our production.
Canada lacks ambition and can do better. We have so much to offer.
Thank you, Mr. Chair.