Evidence of meeting #41 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 markets.
A recording is available from Parliament.
Liberal
The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)) Liberal Judy Sgro
I call to order meeting number 41 of the Standing Committee on International Trade.
You've all received an updated draft budget for possible travel to Washington. We did some work with the clerk and reduced it. Now we are down to $94,248.87.
Would the committee be prepared to adopt that travel budget and forward it on to SBLI?
Liberal
The Chair Liberal Judy Sgro
All right, we'll do that. I'll sign it in a minute.
Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, February 12, 2026, the committee is resuming its study of Canada's trade with Japan. Unfortunately, our Business Council of Canada witness, Mr. Kennedy, did not have the right headset this morning and is unable to participate. He's in Japan. That's why he would have been such a great person to testify on Japan.
Nonetheless, we do have Antoine Morin, senior vice-president of sales, commercial strategy and marketing, by video conference for Olymel L.P.
Mr. Morin, thank you for joining us today. We almost had to cancel our meeting this first hour, so we're glad we were able to connect with you.
We will now open the floor to Mr. Morin for up to five minutes, please, for an opening statement.
Antoine Morin Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
Good morning, everyone.
Thank you for giving me the opportunity to speak to you today. My name is Antoine Morin. I am senior vice-president of sales, business strategy and marketing at Olymel S.E.C.
Olymel is Canada's leading producer, processor and distributor of pork and poultry. We've been exporting pork to Japan since 1994. Today, Canadian pork exports to Japan total approximately $1.5 billion annually, with Olymel accounting for 37% of those exports.
Japan is one of the most important and highly valued markets for Canadian pork. It is characterized by discerning consumers who place great importance on meat quality, animal welfare, food safety and consistent supply. This trust is reflected, in particular, in the fact that Olymel is the exclusive supplier of fresh pork to Costco's 37 stores in Japan. We also supply other Japanese retailers, distributors and restaurant chains, which rely on Canada as a stable and reliable source of supply.
However, this relationship is now threatened by a major risk: African swine fever, a highly contagious disease that affects pigs and wild boars. It is currently present in several regions of the world, particularly in Europe and Asia. It poses no risk to human health, but it results in high mortality among infected animals and causes significant trade disruptions. If even a single case were detected in Canada, Japan could close its borders to Canadian pork.
There would be significant economic repercussions for producers, processors, workers and rural communities across the country. The consequences would also be felt in Japan. As a major importer of Canadian pork, Japan could lose access to a reliable supply of fresh-chilled pork, a high-value-added product that is particularly sought after by Japanese consumers. Any disruption in this supply would create significant challenges for retailers, distributors and consumers who have relied on Canada as a trusted partner for over 30 years.
That's why it's essential for Canada to conclude an African swine fever zoning agreement with Japan—one based on regions affected by an outbreak rather than on provincial borders. The zoning principle is internationally recognized by the World Organization for Animal Health. It allows trade restrictions to be limited solely to areas affected by the disease, while maintaining trade in products from unaffected areas.
In a country as vast as Canada, a province-based approach could have disproportionate trade consequences. A localized outbreak in one part of a province should not jeopardize exports from regions hundreds or even thousands of kilometres away that remain free of the disease. During avian influenza outbreaks, Canada already successfully applies a regional zoning approach in the poultry sector. We believe that a similar approach for African swine fever would effectively protect both animal health and the continuity of trade. Canada has already entered into such agreements with certain trading partners, including the United States and the Philippines. As discussions with Japan progress, it is important that the final agreement reflect this reality on the ground and allow for export continuity from regions unaffected by the disease.
Furthermore, beyond health challenges, Canada's logistical reliability is also essential to maintaining the confidence of our Asian partners. Exports to Japan depend on an efficient and predictable supply chain, from rail transport to port infrastructure. Port disruptions, labour disputes or logistical bottlenecks have a direct impact on our ability to deliver products on time and remain competitive against other exporting countries. In a market like Japan, where consistency and reliability are paramount, it is essential to continue safeguarding the flow of trade in the strategic corridors between Canada and Asia.
In conclusion, let me reiterate the two strategic challenges that are critical for the Canadian pork industry: first, reaching a zoning agreement based on the regions affected in the event of an African swine fever outbreak, in order to protect access to the Japanese market and avoid disproportionate trade disruptions; and second, maintaining a reliable and efficient supply chain, particularly by ensuring the smooth operation of the rail and port networks connecting Canada to Asian markets.
Thank you for your attention, and I'll be happy to answer any questions you may have.
Liberal
The Chair Liberal Judy Sgro
Thank you very much, Mr. Morin.
We will start with members. We are going to switch things around a little for our first round, at the request of the vice-chair, and we'll start with Mr. Lavoie first.
Liberal
Steeve Lavoie Liberal Beauport—Limoilou, QC
Thank you, Madam Chair.
Mr. Morin, thank you for joining us this morning. I'm very glad you're here.
The motion I introduced is important, and I'm glad the committee agreed to consider it. I'm also glad you're with us this morning, because Olymel has been operating in Japan for several years, so your experience is truly invaluable. That's essentially what I'd like you to share with us this morning.
My first question is very simple. We want to double exports to Europe in the coming years. What advice would you give to a company from Canada or Quebec that wants to expand into Japan? Where should it start? What would be your top pieces of advice?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
That's a good question.
I'd say it comes down to having the logistical and operational capacity to serve demanding markets like Japan. I'd start with that.
Next, I would look at the operational and market requirements and opportunities. In other words, is there actually a demand? Japan has a large number of pork consumers, and per capita consumption is high. It's certainly a target market, and the same goes for South Korea.
I would say it really comes down to assessing market requirements in relation to one's operational capacity and ability to capitalize on opportunities.
Liberal
Steeve Lavoie Liberal Beauport—Limoilou, QC
You mentioned logistical and operational capacity. What do you mean by logistical capacity? Are we talking about logistical capacity related to transportation?
We've already met with representatives from the Port of Vancouver, who want to expand the port to facilitate exports. What kind of logistics are you referring to?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
We have three locations in western Canada. We use the Port of Vancouver. Let me give you a concrete example. We use rail, port and maritime corridors. It's about being able to manage all these logistical considerations in order to meet the expectations of customers in Asian markets—which are extremely demanding—in a timely manner. It comes down to the country's capacity and the operational capacity of a company that wants to succeed in Asia.
Liberal
Steeve Lavoie Liberal Beauport—Limoilou, QC
What is the time frame for a company that is just starting out and wants to explore the Japanese market and assess its ability to export and open up new markets? What kind of time frame are we looking at? In your opinion, how many years would it take from the time the company begins its market research until it ships its first order?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
If the company's starting from scratch, I'd say it could be done within 18 to 24 months. If it's building on synergies—which could be international in contexts like Costco's, as I mentioned—it could happen faster. A company can then leverage certain catalysts available to certain groups.
Liberal
Steeve Lavoie Liberal Beauport—Limoilou, QC
From the perspective of an agri-food exporter like Olymel, are there any measures the government has already put in place, or could implement, to make things easier for you in these markets and help open up new ones?
Feel free to tell us what you need—don't be shy. What measures could the government put in place to help you?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
First, I'd like to reiterate the point I just made about zoning agreements, which loom over us like a spectre. An outbreak of African swine fever in Canada tomorrow could cause significant disruptions to business operations. That would be very damaging to the Canadian pork industry.
The next item on my wish list would involve everything related to preferential tariff rates and the regulatory flexibility needed to access certain markets. You mentioned Europe earlier. All non-tariff barriers—such as those related to the use of certain sanitation products at our facilities, among other things—are obstacles to accessing certain markets.
Ultimately, it's about being able to provide Canadian exporters with as much access as possible. You can never have too many options in a trade deployment playbook.
Liberal
Steeve Lavoie Liberal Beauport—Limoilou, QC
Tell me more about these non-tariff barriers. Are you currently experiencing any in the context of Japan?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, preferential tariff rates for certain product categories in Japan will be phased down through 2028. An agreement is already in place, which is great. We will be able to benefit from zero tariffs in Japan on certain categories. This agreement is already being implemented.
I'll now move on to non-tariff agreements regarding the European market.
Certain sanitation products used in processing facilities are not accepted. In Canada, we use specific chemical agents to extend the shelf life of some of our products. European regulators are aware of this and have put rules in place that prevent us from accessing their market with those products. These are non-tariff barriers that would force us to move away from an existing model that works well for us in Asia but would hinder our market access.
Liberal
Conservative
Andrew Lawton Conservative Elgin—St. Thomas—London South, ON
Thank you very much, Madam Chair.
It's great to be on this committee for the first time, especially on a study on Canada's trade with Japan. This is incredibly relevant to my riding, both in the agricultural sector and in the manufacturing sector, and in both imports and exports with Japan. I'm very happy to be here.
I was hoping to have Mr. Kennedy available, but I will ask you, Monsieur Morin, about pork, because you did bring it up. This is not a huge export for Elgin County in Ontario, but we do sell pork to Japan.
One of the opportunities I saw when I was in Taiwan a couple of years ago was that they were so proud to be serving Canadian pork. They were putting up big signs at the hotel because of how good the product was.
Is it your experience as well that in Asia, Canadian pork is widely regarded as not just an affordable product, but a superior product?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
Thank you for your question, Mr. Lawton.
Canada does indeed have a reputation for producing high-quality pork compared to its international competitors. Our business partners promote Canadian pork before promoting any specific brand. That's also the approach we take at Olymel when we go abroad—we highlight Canadian expertise.
By way of example, 50% of shipments of chilled, never-frozen pork to Japan come from Canada. At the same time, we're competing against the United States, which slaughters 2.6 million hogs per week, compared to about 400,000 in Canada. So the fact that we hold a roughly 50–50 share under those conditions—despite the vast gap in slaughter volumes between Canada and the United States—really speaks to the quality of Canadian pork and its reputation in a niche market that prioritizes quality.
Conservative
Andrew Lawton Conservative Elgin—St. Thomas—London South, ON
Thank you.
I think it's important that we have infrastructure, trade relationships and a system to support this to get that incredible product to market, which is good for our farmers. It's good for our exporters.
You mentioned ports in your opening remarks. This is an area that we've seen the Liberal government not run as effectively as it needs to be. Out of curiosity on my part, do you believe that privatizing the ports would lead to more efficient operations?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
I'll answer candidly: I don't think the issue of port privatization falls within my area of expertise. That said, what I can say is that service disruptions and instability at certain points in our supply chain are harming Canada's reputation in international markets.
As for how best to address this, I'll leave that discussion open. However, it's clear that there's room to improve the fluidity and reliability of port services.
Conservative
Andrew Lawton Conservative Elgin—St. Thomas—London South, ON
When you talk about these inefficiencies and inadequacies in the status quo with the way the government is running these ports right now, what are the practical costs of that? If you have dollar figures, great, but if not, even just in an illustrative way, what does this mean for your operations and those of other organizations?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
We're dealing with a product that originates from a living being, so the flow of hogs coming in from farms is constant. For example, if there's a service interruption at the Port of Vancouver—whether due to a shutdown or a strike—which is our primary gateway for exports to Asia, we have to decide whether to keep shipping to customers who require fresh product or to freeze it and redirect it to other markets, rather than Japan, which is a premium market.
I don't have figures to share today, but this puts significant pressure on the supply chain. That, in turn, creates instability and leads to financial losses, as decisions sometimes have to be made under uncertain conditions.
Conservative
Andrew Lawton Conservative Elgin—St. Thomas—London South, ON
I've heard concerns from business officials in my riding, in St. Thomas and Elgin, and we've seen media reporting from Japan about the forthcoming closure of Canada's consulate in Nagoya, which will reportedly be shutting its doors in August. Have you received any formal or informal notification of this?
Senior Vice President, Sales, Commercial Strategy and Marketing, Olymel S.E.C.
Not at all.