Good afternoon. Thank you for the invitation to present to the House of Commons international free trade committee.
Simpson Seeds is a family owned company involved in processing and exporting of pulse crops. We've been in business nearly 30 years. As a commemoration of that date, we did a special edition of our newsletter. I did bring some copies for members, and if you're interested, I can certainly hand them out to you. If I don't have enough copies, I can get your cards and send them in the mail.
Our company has two processing plants in Moose Jaw. We also have one in Swift Current, and another facility, a processing elevator in Kyle, Saskatchewan. We currently employ about 80 employees. We service pulse growers in southern Saskatchewan; over 2,600 pulse growers depend on our company as a source for accessing international markets. Our company has grown over the years, and it now has access to over 70 nations worldwide.
Our vision is to be a leader in the pulse industry, and our mission is to bring nutritious pulses to the nations. In addition to this company, we are a third-generation farm. We have a succession plan under way right now to bring in the fourth generation--thankfully. We're pedigreed seed growers, and we bring new technology from universities and crop development centres to our growers in the region to make them the first-class growers that they are in the world.
I have a background as an inspector with the plant products division, which is now called CFIA, in Agriculture and Agri-Food Canada. I was chairman of the Saskatchewan Pulse Growers Association between 1980 and 1985, and I have served in various capacities with the Western Canadian Marketers and Processors Association, the former western pulse growers association. I am currently a member of the CSCA, the Canadian Special Crops Association, and I work on market development and the transportation advisory committee for Pulse Canada.
I've travelled the world extensively as an ambassador for Canada. I've travelled to many countries, such as Mexico, Spain, Italy, Greece, India, and Sri Lanka, so I have a very good understanding of the importance that Canada plays as a provider of food to the world.
As I've travelled, I've been impacted by the people through the work of missions--seeing the poor, the orphans, helping to feed the poor, and seeing the hunger first-hand. My heart bleeds for those people who are oppressed and for those who need hope for a better future. It is my view and my prayer that Canada, as a blessed nation, will fulfill her destiny for the healing of the nations. I believe we have a lot to offer by engaging in this trade and by having increased trade relationships, especially with countries such as Colombia.
Poverty is a real problem in Colombia. According to statistics on South America, poverty is reported in about 35% of the general population, and around 17% are in extreme poverty. That's a big number. Some 9.6 million people are living in extreme poverty. These people are huge consumers of lentils, peas, and chickpeas from Canada. It's obvious that we need to enhance our trade with Colombia.
International trade is important for employees and for processors. Simpson Seeds has about 80 employees: hard-working men and women who have mortgages to pay and families to feed. But we're not the only ones in this sector. I have an executive summary from a 2008 special crops processors survey that says there are over 1,100 people employed in this sector, in 96 facilities throughout Saskatchewan. The payroll is around $34 million. Over half of these processors are planning to expand in the next three years, and many are expanding in the next year. There were some five million metric tonnes handled through these facilities.
Our company is one of those that has expanded. We have just added a state-of-the-art red lentil splitting facility, and we plan on building a warehouse next year. We also plan to build a new head office on Highway 1, in Moose Jaw. It is very important that we provide an environment to work through the economic storms of this current global recession.
We also think it's important to recognize that this trade agreement is vital to the 18,000 pulse growers in Saskatchewan. Last year, we grew a record 2.3 million acres of lentils and on those acres we produced a very good quality crop of 1.4 million metric tonnes. Of those 1.4 million metric tonnes, 57,000 metric tonnes annually go to Columbia. It is a significant market; they're our number one whole grain lentil buyer, and without them it would have a negative impact on our industry. Our company alone deals with one customer that takes nearly 20,000 metric tonnes of that 57,000-metric-tonne market. That would represent, in our company alone, about 10% of our exports. That's how important it is for us to maintain this trade.
Lentils are also the most profitable crop on our farm this year. Spring wheat and durum wheats are in the tank. The Canadian Wheat Board this year can barely move 50% of our crop of durum. What's that going to spell out for the farmers next year? You can bet that they're going to be seeding these lentils post to post, fence to fence. We expect some three million acres to be seeded next year, so we need to make sure we continue to open the doors for trade so that we don't have any kind of disadvantage brought to our growers.
Keep in mind, the U.S.-Colombia trade agreement has been signed. It's a matter of time before they sign it, and if they sign before us, that will disadvantage us by 15%. On today's current market of $900 per metric tonne, CIF Buenaventura, which is one of the ports we deliver to, that would represent about a $135-per-metric-tonne disadvantage for Canadian growers. That would result, clearly, in the U.S. lentil producers having an advantage, and it would either cause Canadian growers to have to reduce production or drop our prices.
In summary, as stewards of this rich nation, we have an affordable and nutritious food for those in need. Second, the people of Colombia need these pulses as a source of protein. Third, the employees in the processing sector need our government to enhance the trade. Finally, farmers depend on the exports to Colombia to sustain one of the few profitable crops in western Canada.
Thank you for listening to our presentation. I'll be more than happy to answer some questions on this presentation.