Thank you very much, Mr. Chairman. We appreciate the invitation to provide input into the committee's study.
The Canadian beef production sector is comprised of 60,000 beef farms, ranches and feedlots and is a major economic driver with a significant multiplier effect in the Canadian economy. In 2017, the beef cattle industry generated $8.9 billion in farm cash receipts and contributed $17.2 billion to the Canadian GDP. A 2011 study found that every job in the beef sector yields another 3.56 jobs elsewhere in the economy, and for every dollar of income received by workers and farm owners, another $2.08 is created elsewhere.
Agriculture and food manufacturing represents one of Canada's biggest global economic opportunities. World population growth estimates will require a 70% increase in global food production by the year 2050. We are eager to capitalize on this opportunity and exceed Canada's target of $75 billion in agri-food exports by 2025.
For the Canadian beef industry to be competitive, it's necessary to have a regulatory system that supports the industry, encourages innovation and efficiency and doesn't add unnecessary costs.
I want to outline four principles that we see as necessary for good regulation.
First, we seek a risk-based, scientific regulatory system. In achieving the mandate to ensure public health and food safety, protect animal health and welfare and sustain the environment, we believe that government regulations must be based on appropriate management of real risks and an accurate analysis of the costs and benefits of the regulations.
Canada must maintain a science-based approach to regulatory decision-making to provide industry with a predictable, credible, consistent and transparent regulatory environment. Recent regulatory proposals in Canada have included potential changes that our industry believes are not rooted in scientific evidence. A couple of examples of those would be Health Canada's proposal for front-of-package labelling regulations and at CFIA the proposed amendments to the health of animals regulations, or humane transport regulations as they're sometimes called.
Second, the government should pursue flexible outcome-based regulations. We encourage an examination of how regulatory approaches can be made outcome-based. This is important not only to ensure that we achieve best results but also to support new and more efficient approaches to achieving regulatory objectives. An outcome-based approach will require a significant mindset shift as well as additional training for current regulators.
Another priority for the beef sector is ensuring that service standards are based on the speed of commerce. In one recent case where we sought guidance, regulators advised that we would have a decision in 100 days. That's far too long a service standard, maybe about 95 days too long, and becomes a serious impediment to our capability to service new market opportunities.
Third, the government should ensure that regulations enhance competitiveness and support innovative products and inputs. It's imperative that Canada's beef industry have access to competitively priced inputs and that the business environment in Canada support the development of new innovative inputs. This is particularly important as Canada is a relatively small market, which can in itself be a disincentive for companies to pursue commerce in Canada and register new products. Some of the things we're thinking of, which Dave might also go into, are registering new plant varieties and new veterinary medicines. Even packaging materials need to be approved.
Regulatory oversight and delivery is also a vital input for the food production sector. We can't sell meat without the regulatory oversight. The ongoing fee review at CFIA, which looks to achieve complete cost recovery, does not have a view to economic growth or competitive regulation. This needs to be reconciled, and the role of government and taxpayers in building a competitive economy must prevail over simplified approaches like cost recovery.
Like many areas of the Canadian economy, growth in the beef industry is afflicted by a shortage of skilled labour. It's a constant challenge to find employees who not only have the skills attuned to the needs of the agriculture and processing sectors but also want to work and live in rural Canada. We ask that the government strategically address national labour shortages and ensure a strong labour supply by implementing the Canadian agriculture and agri-food workforce action plan. The action plan includes changes to make the temporary foreign worker and immigration processes more efficient and to facilitate permanent immigration status.
The fourth principle involves international harmonization and equivalency. We encourage an ongoing effort to increase the extent to which Canadian regulations are harmonized or deemed equivalent with other jurisdictions. Harmonization should continue to be pursued to the greatest extent possible by establishing international standards and encouraging adherence to such standards. We recognize that it's not always possible or practical to achieve full harmonization, and in such instances, we should be focusing on recognizing the equivalency of outcomes.
We applaud initiatives such as Beyond the Border and the Regulatory Cooperation Council, and we remain hopeful that positive outcomes can be achieved for the beef sector. As we open new trade agreements, there remains much scope to pursue similar initiatives with other trading partners, as well.
That's my fairly high-level overview of the general direction we would like to take with the regulatory structure. I'd be glad to take questions and focus on specific areas.
Thank you.