Evidence of meeting #37 for International Trade in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pork.
A recording is available from Parliament.
President and Chief Executive Director, Canadian Pork Council
Yes, we did. For our industry alone—I'm not talking about other sectors—we lost about $10 million over seven to 10 days. The losses were quite significant. In addition, we sold everything at a loss during that period.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Okay, thank you.
We've talked a lot about Japan being a key partner for our pork product.
Is it still possible to export more pork to the Japanese market?
Chair, Canadian Pork Council
Yes, there are still opportunities, particularly given what's happening right now in the United States, which is our main competitor for fresh meat. This is eroding the confidence of Japanese consumers and buyers. So that gives us an opportunity to continue growing this market.
We've built a very long-term relationship, and keeping it and valuing it means a lot to the Japanese. It's not a commodity market like any other. It's truly a market of added value and relationships.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
You anticipated my other question, which was about who your main competitors are in the Japanese market.
You talked about the United States, but are other competitors vying with you for access to that market?
Chair, Canadian Pork Council
One of the markets we're watching with concern is frozen pork from Brazil. We must therefore always keep production costs as low as possible in order to be able to compete in the frozen pork market as well.
We've observed a trend in recent years, as economic conditions in Japan have become somewhat more challenging. They are shifting towards frozen products, which are less expensive. So we need to make sure that we are—
Liberal
Liberal
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
Thank you, Madam Chair.
Again, this question is for both Mr. Heckbert and Mr. Roy.
When we look at the figures, we see that Quebec is Canada's largest pork producer. Quebec accounts for 30% of total production, but only 22.7% of exports. Conversely, we see that Manitoba accounts for 46.6% of exports, even though that province accounts for only 22% of Canada's total production.
Could Japan be an opportunity for Quebec to increase its share, or is it possible that other provinces will benefit more?
Earlier, you said that we have adapted, that Quebec has been a pioneer for a certain type of meat that is likely to be a hit in Japan.
Is this the opportunity we're missing?
Chair, Canadian Pork Council
Canadian processors have adapted to their market. Companies in Manitoba have focused more on exports. In Quebec, the focus has been more on serving our Canadian market well. So we're also seeing this decline. However, every time we succeed in increasing our share of added value, it represents a very significant margin, a very significant source of wealth that we can bring to Canada and Quebec.
We can certainly consider increasing our ratio, and we have the capacity to do so. In Canada, we have the capacity to produce more.
President and Chief Executive Director, Canadian Pork Council
Yes, this is a great success for Quebec producers. The Quebec domestic market demands a lot of our pork. However, that leaves less available for foreign markets.
Manitoba, on the other hand, has a much smaller population and a domestic market that isn't as large. That's why Manitoba is focusing on exports in this way.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
You're telling us that we have to continue in this direction, ultimately, that it would be good for Quebec producers.
How much time do I have left, Madam Chair?
Bloc
Conservative
Adam Chambers Conservative Simcoe North, ON
Mr. Davison, can you help me understand? To your knowledge, has there ever been any threat of tariffs from Japan on your members' goods?
President and Chief Executive Officer, Canola Council of Canada
In terms of a threat of new or different tariffs being imposed on Canadian canola and canola products in terms of bilateral trade between Canada and Japan...?
Conservative
Adam Chambers Conservative Simcoe North, ON
In your view, they're a reliable trading partner. Is that correct?
President and Chief Executive Officer, Canola Council of Canada
That's correct, yes.
Conservative
Adam Chambers Conservative Simcoe North, ON
Do you feel that there are some countries in the world that are less reliable?
President and Chief Executive Officer, Canola Council of Canada
I think we're all very aware of the current geopolitical environment that we're operating in across all industries and sectors. There are, obviously, for a variety of different reasons, different markets or different countries that pose challenges. Yes, that's true.
Conservative
Adam Chambers Conservative Simcoe North, ON
Do you feel that your members in the sector have been or can be used, not because of anything that your members do but...? Are you feeling the consequences of being stuck between two countries that might be arguing about nothing to do with your goods?
President and Chief Executive Officer, Canola Council of Canada
I think that's a risk for many industries. We've talked about that in the past, and sometimes you use the term “collateral damage” in situations like that. Obviously, we're in the markets that we're in for good reason in terms of the Canadian canola industry, so what we want to do is make sure that the markets we have a bilateral relationship with are working as smoothly, effectively and efficiently as possible. That's our goal in that regard.
