Evidence of meeting #17 for International Trade in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was canola.
A recording is available from Parliament.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Ms. Citeau, you said that there was a growing interest in the origin of our food. This is a fairly international, if not unanimous, observation.
Do you think that an agreement should contain a thorough traceability mechanism to identify the origin of food?
How should this mechanism work?
Executive Director, Canadian Agri-Food Trade Alliance
In the initial rules, this mechanism already exists in a certain way. We should look further into this question to see how important the mechanism is, which sectors are affected and what the details are. In principle, a mechanism is in place in a general way.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Could it be strengthened or developed further in some way?
Executive Director, Canadian Agri-Food Trade Alliance
I will let the members of the associations answer your question.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
I invite the other witnesses to answer the question.
Vice-President, Government and Industry Relations, Canadian Canola Growers Association
I would just say that it would really depend on the kind of commodity, where canola...it's all bulked up together. I'd also suggest that traceability comes with a significant cost. As we look at rising food prices, at the cost of living and inflation, we have to be really careful that we don't inadvertently add extra cost on food production at this time. When grocery store prices are high for someone like me, who lives in Ottawa, I can only imagine what some families are facing across Canada.
Traceability is a good thing, but we have to make sure that the return on investment is worth any additional costs to just the basic food prices we see at grocery stores.
Director, Government and Corporate Affairs, Canadian Pork Council
I would just say that there are methods and ways of tracking to make sure that it comes from where it says it's from in terms of the country of origin. There are two areas where there are aspects—
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
I am sorry to interrupt you, but there is no interpretation.
Director, Government and Corporate Affairs, Canadian Pork Council
Oh. So sorry.
Are we good now?
Director, Government and Corporate Affairs, Canadian Pork Council
I'm sorry.
My French is not very good.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
It's no big deal. The interpretation was not working, but I think the problem is solved.
I invite you to resume speaking.
Director, Government and Corporate Affairs, Canadian Pork Council
There is a fairly good traceability system established in terms of ways of tracking movement from source to destination. There are two areas where there's probably some opportunity to improve. One is e-certification. Instead of relying on a paperwork process, it would move to the electronic. The second part is making sure there are anti-fraud techniques, so that the existing paper documentation or the electronic format cannot be copied by alternative participants.
Liberal
NDP
Matthew Green NDP Hamilton Centre, ON
Thank you, Madam Chair.
I don't know when I'll be back at this committee—
NDP
Matthew Green NDP Hamilton Centre, ON
—I do appreciate that—so this is for my own edification.
I referenced Canada's trade relationship with Russia. The canola producers are here. With the war in Ukraine, and displacement and anticipated shortages in oilseeds for cooking oil production, are there measures that the Canadian canola growers and other oilseed producers in this country could take to ensure there are no shortages or price spikes, as in mitigation strategies, especially for some of the lower-income countries in Asia, some of the ones that we're looking at?
Just in terms of tying it in with the way in which global food insecurity in the face of war might be impacted, this is a consideration we should have when contemplating our trade agreements with ASEAN.
Vice-President, Government and Industry Relations, Canadian Canola Growers Association
I can certainly say that in Canada, even, we're coming out of the worst drought in 50 years in western Canada. We saw production fall from about 20 million tonnes to about 12.5 million tonnes. I think the biggest thing with oilseeds around the world this year will be whether or not the supply can meet the demand.
As far as pricing goes, that's a global market. If farmers could control that, they certainly would love to. However, with price-takers it is a global commodity. I think there are discussions under way, which our CEO is involved with through the United Nations Food and Agriculture Organization around global food security. I think the biggest concern coming out of this Russian-Ukraine conflict will likely be more a concern about cereals. Canola is not something you eat a bowl of sort of thing. About 40% of North Africa's cereals, like oats and barley, come from that area of Russia-Ukraine.
Then there are the knock-on effects. A lot of the world's supply of fertilizer, which is key to yields to produce a lot of food, also comes from that area. We're following keenly and engaging through international forums.
On the price side, it's a global market, but I'd say that Canadian farmers are very optimistic about this year and growing as much as possible. But that also requires a domestic regulatory environment that encourages intensification as opposed to discouraging it, which is probably a whole other committee appearance right there.
NDP
Matthew Green NDP Hamilton Centre, ON
I might see you at another one of those committees.
Thank you very much, Madam Chair.
Conservative
Tony Baldinelli Conservative Niagara Falls, ON
Thank you, Madam Chair.
Thank you again to the witnesses for being here.
Earlier on, Mr. Vander Ploeg, you were speaking about some of the challenges of trade negotiations and the issues you face in other countries. You also mentioned in your remarks, which you never had an opportunity to really complete, some of the challenges you've faced. Some of the issues are domestic, in a sense, too. Mr. Stordy mentioned that as well.
Mr. Vander Ploeg, you talked about some of the Health Canada concerns that you had. I was wondering if you could further elaborate on some of the issues you have.
Mr. Stordy, you mentioned some of the issues as well, the supply chains and so on. If you could just elaborate on that a bit, that would be great.
Vice-President, National Cattle Feeders' Association
I think the essential point there was for all of us to realize that the signing of a free trade agreement is a fundamental and important first step in terms of gaining market access, but the efforts have to go beyond that. There's been a lot of talk around the committee this afternoon about non-tariff barriers, for example.
There are other challenges, as well. There are other domestic policy challenges in the form of labour. It's the one we talk about the most.
In the cattle industry, there was a recent study done that we're missing out on almost a half a billion dollars in beef sales simply because there isn't enough labour both on farm and in our plants to maximize the value of carcasses. In several beef plants right across the country there's a continual work shortage where worker stations are empty, and we're not maximizing the value of our carcasses that producers are raising.
Along with trade policy and targeting specific markets where we could succeed, there will have to be other supporting policies. What can we do to increase the domestic labour force in agriculture and agri-food? What are the other policies that are taking away? I simply refer to the front-of-pack labelling as just an example of something that is homegrown here in Canada that might not be providing much benefit at all in terms of being able to promote Canadian beef abroad.
We need to take a look at other policies to make sure they're supportive of our trade agenda.
Director, Government and Corporate Affairs, Canadian Pork Council
I should address some of the labour challenges. I'll probably move it a little bit off CEs and whatnot where agriculture is benefiting from programming that allows us to go to countries as an industry, promote our product, build those relationships and work collaboratively with trade commissioners or other participants. That particular...whether it's programming or whatnot, is really under stress because of the lack of funding and demand for more opportunities in global markets.
If anything, it's one of those things where there are some fundamental challenges here domestically in Canada, whether it's labour or supply chains or even just investment in routes. At the same time, on the other side there is a need for partners through programming to really build those relationships in the absence of government being able to come through.
Conservative
Tony Baldinelli Conservative Niagara Falls, ON
I have one quick question. The very nature of trade agreements will allow those nations trading with us access into our country. From your industry's perspective, are there things the Government of Canada needs to consider protecting or preserving when looking to expand trade opportunities in Indonesia and with the ASEAN countries?
That's for anyone who wants to take it.
