Evidence of meeting #8 for International Trade in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was sector.
A video is available from Parliament.
7:25 p.m.
Vice-President, Strategy and Industry Affairs, Gay Lea Foods Co-operative Ltd.
In part, it was an industry-led solution to an industry issue, but it also was repositioning us for the future. I think they needed to understand that in the context of investments—
7:25 p.m.
Vice-President, Strategy and Industry Affairs, Gay Lea Foods Co-operative Ltd.
—that had been made that were too far to go back on.
7:25 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
I'm sorry, but I only get five minutes.
With regard to compensation for TPP and then compensation for NAFTA, Rick, we had a whole pile of canola markets shut down because of this government's comments or actions. What kind of compensation do you think the canola growers should get in light of what the dairy producers are getting? I hear a lot of times on the doorsteps right now, “Dairy is getting compensation; they're giving out market access. I've lost markets in Saudi Arabia; I've lost markets in China because of this government.”
What should their compensation be?
7:30 p.m.
President and Chief Executive Officer, Canadian Canola Growers Association
Mr. Hoback, in my presentation I talked about improvements to agri-stability. That's where we have consensus in the grains and oilseeds sector in terms of how to manage and help our farmers through this very difficult time, especially with China. We would like to see the agri-stability reference margins raised to 85%. That will take money, but it will provide adequate, or at least better, coverage for farmers to weather these kinds of storms. That's where consensus has arisen. There are other ideas for getting compensation out there, but it's loud and clear that agri-stability needs to be fixed. It's not fixed yet.
7:30 p.m.
Liberal
Sukh Dhaliwal Liberal Surrey—Newton, BC
Thank you, Madam Chair.
Thank you to the presenters.
My first question is for you, Ms. MacLellan.
I hear your concerns. You mentioned that you have a three-year, five-year and 10-year plan if the government has your back. I can certainly tell you that government has your back. That's why we were able to preserve supply management. Earlier, when I talked to the other group, the Dairy Farmers of Canada said that about 3.9% of the dairy market is affected by CUSMA.
What is your three-year plan? What is your vision when it comes to three years and 10 years?
7:30 p.m.
Vice-President, Strategy and Industry Affairs, Gay Lea Foods Co-operative Ltd.
It's three years, because the next three years are where we're going to see the greatest impact as these free trade agreements come together, as well as the changes with the WTO. Frankly, I think we need to get through that. We are only just now seeing the impact of CETA. We need to get through the next three years. We need to start to have discussions with government as well as with the industry.
What are we prepared to do? What do we see are the opportunities for milk and dairy going forward? What is that going to take to then see if it's really where Canada's commitment is? That's going to have an impact on the confidence for future investment.
7:30 p.m.
Liberal
Sukh Dhaliwal Liberal Surrey—Newton, BC
I want to know what you think. What exactly is it that will make sure that the 3.9% we lost through the CUSMA...will we be able to help the dairy farmers?
7:30 p.m.
Vice-President, Strategy and Industry Affairs, Gay Lea Foods Co-operative Ltd.
I have a strong passion for dairy. I see tremendous opportunity for dairy.
The thing that will hold it back is money and the risk that processors will continue to be willing to make investments, as we did in Canada, that already have the goalpost changed before we even commissioned the facilities.
These are long paybacks. These are very difficult decisions. The opportunities on the protein side, the opportunities on...frankly even how I mix it with some of Dave's products, and we do fat-filled.
There are so many different facets with the global marketplace changing that dairy could play a vital role, as it does today, and in ways we haven't even quite developed yet. That's going to take some serious commitment and some serious investment.
We need to know if Canada's the right place.
7:30 p.m.
Liberal
Sukh Dhaliwal Liberal Surrey—Newton, BC
If the government does that, then are you pretty sure in your mind that you will be able to provide Canadians with quality products and possibly expand in the coming years?
7:30 p.m.
Vice-President, Strategy and Industry Affairs, Gay Lea Foods Co-operative Ltd.
We absolutely have the best milk in the world. We have dedicated dairy farmers and we have some of the best processors.
We need confidence from government that if we make high-risk investment decisions that the government will have our back.
7:30 p.m.
Liberal
Sukh Dhaliwal Liberal Surrey—Newton, BC
Thank you.
Mr. White you mentioned 250,000 jobs in the canola industry. Are they all in western Canada? Can you elaborate, please?
7:30 p.m.
President and Chief Executive Officer, Canadian Canola Growers Association
They're basically jobs in Quebec and Ontario. The farming jobs are predominantly in western Canada, but there are processors in Quebec and Ontario as well. The entire value chain of 250,000 are pretty much spread across the country, not so much in eastern Canada though, not the extreme eastern Canada.
7:30 p.m.
President and Chief Executive Officer, Canadian Canola Growers Association
Yes, there's pressure there and CUSMA will help not only canola but soybean growers too. Soybean and canola are very closely related to the same market. Our soybean farmers will certainly benefit as well.
I won't speak on their behalf; but, yes, it'll help the entire industry. It provides stability, predictability and that is worth a lot these days in the international market.
7:35 p.m.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Good afternoon. Thank you all for coming here to share your views and talk about the issues facing you.
I'm delighted to see someone from the beautiful municipality of Sainte-Hélène-de-Bagot, in my riding. I'm pleased to represent you in the House. If you're interested and you have the time, I'd also be glad to visit your facilities in the near future.
I think my first question should go to you.
As far as the cattle industry is concerned, let's do a comparison with the Canada-EU agreement. All kinds of promises were made, but, in the end, they amounted to little. For a long time, the selling point that was trotted out was that the cheese sector was sacrificed to benefit the cattle sector. When all was said and done, though, it became clear that the pitfalls were huge. The European market we were promised wasn't quite so accessible.
You seem to be much more optimistic about the American market. Is it simply that you already had access under NAFTA and that access will continue with the new agreement, or is there really something new in CUSMA?
7:35 p.m.
Chair, National Cattle Feeders' Association
As you mentioned, it's an altogether different agreement from the one with the EU. We are talking about a market that's already highly integrated.
Market-wise, as Ms. Tranberg indicated, Canada exports 45% of all its beef production, with 75% to 80% of those exports going to the U.S. Keep in mind that the base price is set in the U.S., so the free trade agreement is important to us.
It needs to be ratified quickly and, if possible, unanimously by every member in the House. Given that the agreement will go a long way towards creating jobs and adding value to the economy, it's very important.
I realize that beef production in Quebec doesn't account for nearly as much, representing 10% of Canada's production. Similarly, Canada's beef production represents 10% of North American beef production, if we compare it with that of the U.S. The agreement is extremely important, both for cattle farmers and for the industry. It's an established market and trading relationship.
7:35 p.m.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Indeed, it's established. Is there anything novel in the new agreement, or does it simply keep the trade lines open, just as they are, but under a renewed agreement?
7:35 p.m.
Chair, National Cattle Feeders' Association
The trade lines already exist; the new agreement makes them stronger. The really important thing about the new agreement is that it doesn't add any costs. When country of origin labelling came in, it cost the Canadian cattle industry billions of dollars. A few years ago, a lot of money was spent to do away with the change, which was essentially a barrier to imports. We are very pleased that the new agreement makes no mention of country of origin labelling. That's a major advancement for us.
7:35 p.m.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
For everyone's benefit, could you tell us a little more about country of origin labelling?
February 24th, 2020 / 7:35 p.m.
Chair, National Cattle Feeders' Association
A group of cattle farmers in the U.S. decided to ask the American government to introduce country of origin labelling for meat products. You'll understand, then, that when an organization in a free-trade zone slaughters Canadian animals in a slaughterhouse, it must slaughter the animals in segregation and identify them at the counter. Many slaughterhouses simply decided not to purchase Canadian cattle. There was true segregation, and that's why it was so costly for cattle farmers.
After a number of years, working hard alongside the Canadian Cattlemen's Association, we successfully challenged the measure under the agreement.
As you can imagine, it's much easier to do business when segregation isn't an issue.
