On top of these issues are the rising costs of transportation. The cost for feed is at the highest level in history, and that's without factoring in increased transportation costs. The rising cost of fuel, in combination with the current price on carbon at $50 per tonne, means trucking is no longer a viable option in some areas, and this will only worsen as rates move to $170 per tonne. Finally, the rural nature of the industry requires proper maintenance of rural roads and bridges, yet your local municipalities struggle to find funding. The combined impact of all these challenges manifests in terms of higher production costs, lost production, lost sales, lower incomes, less investment and overall a less competitive industry.
We appreciate the transport committee looking into supply chain issues. To ensure that Canada's beef sector remains competitive, we offer the following recommendations. Railway service in the west operates as a monopoly, with no alternative, and railway should be designated as an essential service. Regulations like those for ELDs need to accommodate the unique circumstances of livestock and Canada's ELD regulations need to be increased so we're not at a competitive disadvantage to the U.S. Immediate attention needs to be given to the growing shortage of drivers in the trucking industry, with particular notice of the specialized needs of the livestock sector. The rising costs of transportation and increased levels of taxation need to be considered so the government does not put its industry at a competitive disadvantage. Beyond the focus of rural broadband, agriculture requires essential investments in hard economic assets, such as roads, bridges, local transportation networks and improved rail transfer and storage facilities and infrastructure.
Thank you.