Good afternoon.
I'm Casey Vander Ploeg and I serve as the manager of policy and research with the National Cattle Feeders' Association. NCFA represents cattle feeding operations across Canada.
Today's cattle feeding operations are highly sophisticated endeavours and employ a range of proven production technologies that result in some of the most affordable, nutritious, and safest beef in the world. I thank the committee for providing this opportunity to share our perspectives on labour and the temporary foreign worker program.
Without any reservation whatsoever, I contend that the single largest issue facing Canadian agriculture today is a shortage of labour that is chronic, pervasive, and severe. This is challenging our competitiveness today and threatening our prospects for growth and export opportunities tomorrow.
Agriculture has the highest job vacancy rate of any industry in Canada at seven per cent. This is no small deal.
Agriculture and agrifood generates eight per cent of national GDP and the beef industry is an anchor for Canadian agriculture, our most valuable agricultural product. Canada is home to 10 million beef cattle and we process about three million head annually, generating $10.5 billion in farm cash receipts.
Just to give you a sense of the scale, consider the beef plant in High River, Alberta. That facility can process up to 4,000 head a day, which translates into two million pounds of boxed beef shipped daily.
Yes, agriculture is an important player in our economy, and it could be even more so, but it simply cannot until our labour challenges are addressed.
The first challenge is the labour shortage at the feedlot itself.
To be competitive, cattle feeders need a reliable, skilled, and competent workforce. Employment at a feedlot is not seasonal. These cattle represent an investment of tens of millions of dollars and require care 24 hours a day, seven days a week, 365 days a year. Labour shortages are not an option, because they impact the health and welfare of animals.
Yet it's very difficult to find, attract, and retain sufficient domestic workers. The reasons are many. We're not graduating enough people with the right skills. These jobs are located in rural Canada, away from the pool of labour in urban areas. The work is dusty, it's dirty, and difficult. It's no surprise that in Alberta mounting layoffs in oil and gas have not translated into increased applications at feedlots.
Hiring Canadians has always been and always will be our first priority. But the reality is that despite extensive efforts, the feedlot sector is not able to secure enough Canadian workers. Increasingly, it has been forced to rely on the temporary foreign worker program to augment the Canadian workforce.
Bringing in these workers is expensive and time-consuming. Yet they are paid the same as Canadians and are provided with housing, transportation, and benefits as well. The red tape and lack of timeliness associated with the process is burdensome, and recent changes to the program have made access more difficult.
As an industry we're doing our part. The Alberta Cattle Feeders have invested hundreds of thousands in a new recruitment campaign. Another example is the work of the Canadian Agricultural Human Resource Council, whom you will hear from later. Over five dozen agriculture and agrifood organizations support the council and its agriculture and agrifood workforce action plan.
The second challenge concerns labour shortages in meat processing facilities.
Beef production is a complex value chain and all components of that chain have to operate at full capacity to be competitive. Cattle feeders are impacted by labour shortages in our beef processing plants. Later you will hear from processors, and we unequivocally support the solutions they will present to this committee as well.
Working in a meat plant is work that most Canadians do not want and will not do. Immigrants and temporary foreign workers are essential for the packing industry. Each day, Canada's meat processing establishments operate with hundreds of empty work stations, and they are presently seeking over 1,000 workers. That labour shortage is making Canadian plants uncompetitive. It prevents us from harnessing new export opportunities such as CETA and TPP.
We view the challenges in the processing sector as our very own challenge because uncompetitive plants are plants that run the risk of closure, and for beef that would be devastating and, likely, unrecoverable.
In terms of solutions, I would urge the committee to consider the following: We need more and better engagement with governments so our unique needs are recognized and efficient programs are designed. We encourage the committee to closely examine the recommendations found in Agriculture and Agri-Food Canada's workforce action plan. We encourage government to continue streamlining the administration and timelines of the program. We need to ensure that the program works for the meat processing sector and that the entire beef production chain is competitive and sustainable, and that we do not drive processing out of Canada. We need to consider giving priority to low-skilled immigrants to more accurately reflect the economic and labour needs of an evolving Canada. We need to ensure that successful foreign workers are provided with a streamlined pathway to permanent residency, whether through the federal express entry or some other program. Also, we could consider creating a single office or centre of specialization for the agriculture stream to ensure that there are knowledgeable staff and timely labour market impact assessments and work permit processing.
In short, we believe that the federal government must show leadership in helping craft solutions to our labour shortages. Key here is fixing access to temporary foreign workers and the temporary foreign worker program and, if necessary, even considering the creation of a new, dedicated agriculture and agrifood workforce program.
Finally, we should all realize that exceptions were made for the seafood industry on Canada's east coast. Agriculture and agrifood have a similar challenge, if not a larger one, and attention must be paid to our needs as well.
I thank you for your time and giving consideration to our suggestions.