Evidence of meeting #12 for Industry, Science and Technology in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was processing.
A recording is available from Parliament.
Assistant Executive Director, Canadian Federation of Agriculture
—that one of the core elements that the CFA has highlighted as a concern is the need for immediate funding of $2.6 billion. That's in recognition of a whole series of identified—
Liberal
The Chair Liberal Sherry Romanado
Mr. Ross, thank you.
Our next round of questions goes to Sébastien Lemire for two and a half minutes.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
My name is Yves Perron, and I'll be taking this round.
I have a question for Mr. Froment or Mr. Benoit. Earlier someone mentioned that verbal promises were made before CUSMA came into force. I gather those promises weren't kept.
Promises were made before the signing of the Trans-Pacific Partnership and the treaty with Europe, and they weren't kept either. I think the whole committee would agree that it's high time you got something.
You said earlier that the distribution of the import quotas could soften the blow. Those are rights to import products that are exempt from import duties, because they're products that need to be imported under the terms of the treaty.
If you don't get a large percentage of those quotas, what will happen? How would it adversely affect the market?
Secretary, Dairy Processors Association of Canada
Mr. Perron, we saw the impact this had after the agreement with Europe was signed, where half the quotas went to retailers and distributors. That meant we lost half the quotas, as we mentioned.
Our margins were also affected, because it displaced Canadian and Quebec products that are on shelves. What we want is to import the products we need to round out our range of products that are made here in Quebec or Canada. If we don't get that, our businesses will of course be at risk, because it will be possible to import products that will completely displace products we already make here in Canada.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
If I understand correctly, the products that processors would import would be complementary, so giving the import quotas to processors helps not only processors, but producers as well.
I'd also like to hear your thoughts on the compensation that had been costed out for previous agreements.
Why do you think you're not getting that compensation now? I would think now is as good a time as any to inject money into businesses that are struggling.
Secretary, Dairy Processors Association of Canada
Good question.
We're still waiting. We hope it's coming. Producers got some compensation for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. We're still waiting, but we have high hopes that it will come very soon.
Liberal
The Chair Liberal Sherry Romanado
Thank you very much, Mr. Froment.
The next round of questions goes to Mr. Masse. You have two and a half minutes.
NDP
Brian Masse NDP Windsor West, ON
Thank you, Madam Chair.
Mr. Currie, I believe it was you who referenced an example of someone paying out of their own pocket, so to speak, to cull animals. I think it was a pork farmer. How much underutilization of processing plants is taking place?
Where I'm from, the auto industry, you just throw on another shift. Some have two or three shifts. To suggest that there's capacity but there's just not money to use the capacity is a little surprising. Could you maybe enlighten us a bit on that aspect?
Vice-President, Canadian Federation of Agriculture
It's just not quite as simple as throwing on another shift in the processing plant and carrying on. The processors have been dealing with a lot of absenteeism. A lot of people are not showing up for work because either they're sick or they're scared to go in case they get sick, so that has been an issue.
In the case you mentioned, he was able to secure enough of a workforce on a Saturday to process those pigs. However, the problem with trying to do extra shifts is that these facilities have strict food inspection rules in place, and there's disinfecting and cleaning of machines between shifts, and so on. It's not just as easy as adding more and more shifts to try to speed up capacity. There are strict rules, especially with food safety, that they have to follow, especially with cleaning of the equipment.
NDP
Brian Masse NDP Windsor West, ON
Sure, and I didn't want to sound as though it was that easy in the auto sector either. The same ISO standards, and so forth, apply.
Is there an underutilization of processing right now? Provided there were proper incentives, and taking into account the workforce issues you described and the training issues, as a result of off hours or other hours, how much underutilization of processing is there?
I'm looking for a time frame here in terms of what we have. Is there an opportunity to increase processing instead of destroying animals? That's what I'm looking for.
Vice-President, Canadian Federation of Agriculture
Training people in a hurry to run a processing facility is not easy. Certainly I know processors would be willing to do that if time allowed, but it's not a simple solution.
We need more processing in general in eastern Canada. It's sorely lacking in processing.
Liberal
The Chair Liberal Sherry Romanado
Thank you very much.
Our next round of questions goes to MP Gray. You have five minutes.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you, Madam Chair; and thank you to everyone for being here.
My first question is for the Canadian Cattlemen's Association.
Mr. Lowe, as I'm sure you're aware, the federal-provincial standardization of meat inspection regarding abattoirs is due to be completed by the end of 2020, per the free trade agreement. One of the concerns I've seen is about the high cost and amount of time it takes to register meat-processing abattoirs federally so they can export interprovincially. I've noticed through my research that this is a concern that your organization has been raising for some time now.
First, is this still a significant concern for your members?
Second, as part of that, with possible concerns now about domestic supply capacity and supply chains, would taking action to expedite reconciliation on these issues be beneficial to your members to help move products between provinces at this time?
Director, International and Government Relations, Canadian Cattlemen's Association
Bob, do you want to answer that?
President, Canadian Cattlemen's Association
I was waiting for you to jump in.
If we could get the federal and provincial inspections to be the same, that would of course help a bunch. More beef could be processed at smaller plants and be eligible for export interprovincially or internationally. It's something that I've been talking about for probably 15 years at least, and where it gets to, I don't know. However, if this can speed it up, that would be nothing but a good thing.
Fawn, do you have anything to add?
Director, International and Government Relations, Canadian Cattlemen's Association
We have a recommendation for an export development fund that could help with some of the investments that need to be made, as MP Masse was talking about previously, to be able to enhance the capabilities at some processing facilities. For us right now, all options are on the table in terms of solutions, but certainly our immediate asks are the three we outlined earlier.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you.
As part of this, it's my understanding that on their Canadian Free Trade Agreement website, the government recently stated that the resolution of the interprovincial trade issues as laid out in the 2019-20 plan may be delayed, including this issue regarding abattoirs. Has the federal government been in constant contact with you on this particular issue, the issue that there is now a delay?
Director, International and Government Relations, Canadian Cattlemen's Association
I'm not sure about that specifically. I could get a further answer for you, but I know that there is work under way right now on the regulations for the interprovincial trade of meat.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you for that answer. It looks as though, due to COVID, they're delaying that.
I have some questions regarding farmers' markets. Across the Okanagan, where I'm from in British Columbia, farmers' markets play a really important role for our producers to sell products, and this is really important, especially for our smaller farms. Many farmers' markets have begun to move to online sales, and some are going to open with a limited capacity. There's a lot of concern about whether or not these smaller producers will be able to get by.
Perhaps to the Canadian Cattlemen's Association and the Dairy Processors Association, have you heard concerns from your producers about their being able to get products to farmers' markets this year, and what those concerns might be?
Director, International and Government Relations, Canadian Cattlemen's Association
That's not something that I've heard.
Go ahead, Bob.
President, Canadian Cattlemen's Association
I think we're going to say the same thing. I have not heard anything about that specifically, so I really can't answer that.
Director, International and Government Relations, Canadian Cattlemen's Association
I think the challenges with processing for us have been with the larger facilities, so I haven't heard that side of things.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Do any of the other speakers who are here today have any comment on that before I move on?
Vice-President, Canadian Federation of Agriculture
The governance of the farmers' markets is a provincial jurisdiction, so depending on the province you're in, they may or may not be open. If they're not open, obviously it's a problem, but there are some provinces that are trying to make it easier for farmers to get access to farmers' markets for the sale of their products.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you for that.
This is just a quick question to the Canadian Federation of Agriculture. With concerns over international supply chains and increasing costs of importing food, would you recommend that the federal government take more action to help ramp up domestic production and promote local agricultural producers locally here within Canada?