Good morning, everyone.
Thank you for inviting me to appear before the committee.
My name is René Bougie, and I am the co-owner of Miellerie King—distillery and meadery, located in Kingsey Falls, in the Centre-du-Québec region. I am also the president of the Association des producteurs d'hydromels et d'alcools de miel du Québec, or APHAMQ.
Our association represents about half of Quebec's mead producers, who produce over 50% of all meads.
Currently, Quebec has issued about 25 mead production permits, and that number has increased in recent years.
The reason we are here today is that in June, Bill C-19 will eliminate the excise duty exemption for wines. This would have a major impact on our industry.
The situation for mead producers is unique. Indeed, we are currently facing several challenges. There is the bee mortality rate, which has been increasing steadily over the past few years, the increase in various production costs, such as raw materials, fields to look after our bees and diesel. There are also the costs of transporting our various goods and the costs of packaging the bottles and putting labels on the jars. The costs are constantly increasing. Eliminating this important exemption would have a significant impact on our various productions.
What we are asking for is that this exemption be maintained. As a result of negotiations undertaken by provincial negotiators, Quebec mead and berry or maple alcohol producers will not have to pay the mark-up to the Société des alcools du Québec, or SAQ, in the context of the World Trade Organization, or WTO, negotiations.
We would like the federal government to apply this type of exemption. In fact, this is what the bill provides for the production of alcohol at home.
I have presented the main elements related to our demands.
I'm happy to answer questions from members of the committee.