Thank you very much, Madam Chair and committee members, for the invitation to address the committee today on a topic of importance to the farmers our association represents.
My name is Erin Gowriluk. I am the executive director of Grain Growers of Canada, a national association that represents the interests of about 65,000 grain, pulse and oilseed farmers in every province across the country.
We are fortunate. We grow more food than what Canadians can consume. In fact, depending on the commodity, about 80% of the grain we grow is destined for international markets. The agriculture and agri-food industry is a key driver of Canada's economy. It contributes over $142 billion, which is about 6.7%, to Canada's GDP annually, and it employs about 2.3 million people. As the fifth-largest agri-food exporter in the world, trade remains a key engine of growth for our sector and for the Canadian economy.
Canadian grain farmers derive their livelihoods from the international marketplace. Simply put, farmers get paid when they deliver their grain to market, and their ability to access international markets has a direct impact on the profitability of Canadian farms. For this reason, farmers have always had their sights set on growth and diversification opportunities. The Indo-Pacific region is a burgeoning market, one that, for some commodities, already holds significant value. For others, it's a market with great potential.
By way of example, Canadian oats have experienced significant growth in the Japanese market. In the past 10 years, Canada's portion of the Japanese market has increased from as little as 5% to as much as 95%. Oat demand in Japan continues to grow, despite the large price increases due to drought conditions in 2021.
As part of this study, the Canadian Canola Growers Association, a member of Grain Growers of Canada, appeared before the committee on May 9. In their remarks to the committee, they highlighted the potential growth opportunities for canola products in regions such as Thailand, Vietnam, Malaysia and Indonesia.
This region is also an important market for Canadian wheat, as it purchases about 50% of all Canadian non-durum. China, Indonesia, Japan and Bangladesh were among the largest buyers of the 2020 Canadian wheat crop. There is potential to grow wheat exports beyond the aforementioned countries into price-sensitive markets such as Malaysia, the Philippines, Thailand, Sri Lanka and South Korea. Canada has exported wheat to these countries in the past, but we are often their last choice as a seller. Stronger trade relations could improve access.
Canada's agriculture sector is facing unprecedented challenges in the international marketplace. Nationalism and protectionism are having an impact on our sector, and will continue to have an impact for some time to come. According to the Canadian Agri-Food Trade Alliance, CAFTA, of which GGC is a member, more than 90 governments around the world recently introduced over 200 import and export restrictions and other measures that have affected trade, including for Canada's agri-food sector.
Despite our leading role in global food trade, Canada is not self-sufficient, and it cannot take its own food security for granted. Unfettered and predictable two-way trade and diversity of markets are the best protection against supply shortfalls, natural disasters, diseases and price shocks.
These unprecedented times warrant an unprecedented approach, one that is strategic and comprehensive and acknowledges the resources as well as the level of commitment that is required to effectively develop a market like the one in the Indo-Pacific region. As such, it is critical for the success of Canada's agriculture sector that the Government of Canada prioritize the development of a comprehensive strategy in one of the most economically important regions of the world. As stated earlier in my remarks and by my colleagues here today, the Indo-Pacific is a burgeoning region, one that holds multiple market opportunities for a variety of Canadian sectors.
For some time now, GGC has been calling for the provision of additional resources, such as regionally based “SWAT teams”, as we call them, consisting of trade officials, technical experts and industry representatives from all levels and departments within government and designed to work with customers to prevent market access concerns from becoming barriers. We need additional resources stationed abroad to promote Canadian products and ensure continued access.
That is why we support the grain value chain associations in their recommendation to establish an Indo-Pacific trade diversification office, which would include a dedicated and resourced market access team to work alongside industry partners. This office would be able to maintain regular contact with agriculture policy-makers and regulators in the Indo-Pacific, ensuring that Canada is at the leading edge of emerging trends in the region and building professional contacts to facilitate communication with foreign officials when required.
I'm grateful to have had the opportunity to present these comments to the committee, and I invite any questions you may have.
Thank you.