International Trade Committee on Sept. 20th, 2016

[Yves Ruel]

First, I would say that chicken farmers would like to produce as much chicken as they can, so if Concord Meats needs chicken, they can contact us, and Robin's members, and I'm sure they'll be pleased to offer it.

In terms of the specific programs, Global Affairs Canada's import for re-export program is specifically designed for agricultural products. It still exists, so Concord and any other company can use it. Some still use it. Some went to DRP, because DRP is so flexible, and completely inadequate for our products, because, as I mentioned, four years to re-export, product substitution, this undermines our industry. This undermines the Canadian marketplace for farmers, for processors. That's why this program should never have allowed chicken products and other agrifood products. It was designed for manufacturing; it's not designed for agrifood.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Horel.

[Robin Horel]

To be fair, the cost of Canadian chicken, raw material for further processing, broiler chicken, is higher than the world cost, or the cost from the United States. It's part of our system. It's part of fair pricing to producers. It's okay; I've already said we support the system, but Yves's point is right. Concord Meats is not a member of mine, but any other company that wants to further process products has an avenue through the import to re-export program that allows them to import meat at a world price, add whatever value they need to add, and re-export it. As long as they re-export it, it works fine. So that's the avenue.

I said it in my brief. We're not against.... In fact we are for innovation, jobs, that kind of thing. IREP will allow all that.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Okay, thank you for addressing that.

I know I'm pressed for time.

Ms. Emond, you mentioned near your conclusion about how it would be great if the government would make investments into industry to ensure its long-term viability. I'm going to give you a chance to elaborate on what kind of investments you see as priorities, and what investments we can make as a government to ensure the long-term viability of your industry.

[Caroline Emond]

Thank you very much for the opportunity.

Yes, we have mentioned research and development. I think that's key to innovation. We're all about innovation and there are opportunities. The minister mentioned our proAction initiative, which is a sustainable policy. It's one of the most advanced around the world. It's an amazing program to ensure food safety, environmental stability. They are all very important elements that our consumers want to know about. The government is even including that in the policy development. But now we are entering the implementation phase. We're talking about $200 million that the producers will have to pay. That's a good example.

On processing facilities, farmers have been investing in their farms to grow, to have innovation, to be more efficient. The processing sector needs some help and encouragement, so we're asking the government to give them those incentives. We're doing our part of the job; now it's time for the government to step in as well.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Okay, thank you.

[The Chair, Liberal, Mark Eyking]

That's pretty well time.

Thank you, Mr. Peterson.

We're going to move to the last slot with the NDP. Go ahead, Madam Ramsay.

[Tracey Ramsey, NDP, Essex, ON]

I'm so frustrated. I'm sitting here shaking my head. I'm a new MP. I also have been at this job for 10 months. I represent a rural riding in southwestern Ontario. The Liberals brought in supply management, and I want to know where the outrage is over not standing up for import controls for our supply management sector in our community, because I don't hear it. I don't hear questions coming from their bench. We made an attempt, the New Democrats, to put forward an opposition day; it was turned down.

I want to know where the responsibility is to supply management from this government. I hope that the members of this committee will hold their own government to account, because as we hear, you represent ridings that are rural as well. It's time to stand up against this. Ten months is more than enough time. The information has been provided by those in the sector themselves. They've given the solutions. They've done it thoughtfully. They've partnered with universities and they've partnered with people to create solutions that have not been adopted.

Shame on this government for not standing up for farmers.

[The Chair, Liberal, Mark Eyking]

Madam Ramsey, we have witnesses here. We don't want to get into a cross-dialogue.

I'm just going to hold the time for a second. I'm not taking up your time.

[Tracey Ramsey, NDP, Essex, ON]

All right.

[The Chair, Liberal, Mark Eyking]

We'd like to focus on the witnesses.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

She can say what she wants.

[The Chair, Liberal, Mark Eyking]

We don't want to get into a kerfuffle back and forth, so steer your questions toward a witness. I don't mind opening statements, but I think they're here to answer your questions.

[Tracey Ramsey, NDP, Essex, ON]

I don't want a kerfuffle. I want to impress upon the government the importance—

[The Chair, Liberal, Mark Eyking]

Okay.

[Tracey Ramsey, NDP, Essex, ON]

Our witnesses have said to us it's incredibly important that the government listen, and they've been at that table. This consultation process has been going on and on, but at some point you have to move from consulting to governing, and that's what we're looking to see. We're looking for that leadership from our government, from the minister.

Again, if I had to grade the government on where we're sitting, it's a complete F to supply management in agriculture in general. Every trade agreement we're entering into is eroding our supply management.

What would you like to see in a trade agreement, what would improve the situation for supply management, and for goodness' sake, what can we possibly do to advocate on your behalf?

[Caroline Emond]

Thank you for the question.

What's important at this point is we can't change the past. We have to live with it. We need to look into the future. That's the first thing.

The second thing is compensation. I said at the beginning we're not opposed to a trade agreement. We understand that other commodities might need it and our economy shouldn't pay for it because a strong dairy sector is important for this country. We need to make sure it was a decision by this country to move forward with that agreement and that farmers need to be compensated. We need to make sure we maintain that strong dairy industry. That's the first thing: to continue to advocate for compensation will definitely be a key, and as well, for investment. We've been a very self-sufficient industry, but we need to pick the good horse and the dairy industry is a good industry in Canada. We need to be able to continue doing that. A commitment to supply management is part of it. We mentioned a third pillar. Government, producer, processor, everybody has a role to play. We're doing our part. We've been working very strongly with our processors in making sure that we all work together for the future of this industry. We're hoping that we can count you as a partner in that relationship.

[Robin Horel]

In our case, if I can—

[Yves Ruel]

Go ahead.

[Robin Horel]

First comes the chicken and then comes the processor.

[Yves Ruel]

What's important for us in the trade agreement is to make sure that the three pillars of supply management are maintained. What's key in this case we're discussing today is import controls are fully maintained. We already provide lots of access, as was mentioned in the dairy presentation. We are a significant importer and contrary to the perception, we're not a closed market. Last year 240 million kilograms of chicken were imported into Canada, so that's a huge volume. We're the 17th largest importer in the world, with 35 million people. We are a significant importer, but we want to make sure we maintain what we have to supply the domestic market so we don't get erosion of our production and our market. It's important that import controls be fully maintained so we don't lose what we have.

[The Chair, Liberal, Mark Eyking]

Thank you. That wraps up our time.

Thank you, folks. You represent so many farmers, and not only farmers, big industries. It's a very important industry and we thank you for coming and thank you for all the questions here.

We're going to suspend for one minute, and then we're going to get right into our future business.

[Proceedings continue in camera]