Mr. Speaker, I will be splitting my time.
I am very pleased to participate in this debate and to speak about one of the principal strengths of Canada's agriculture and agri-food sector, its innovativeness.
The sector has long been a leader in forward thinking and strategic planning. The agri-food sector demonstrates a keen business sense and a healthy enthusiasm for competition. Staying at the forefront of developments in this sector is a constant process, a process of adapting to changing conditions, of adopting new technologies and improving one's position in the marketplace.
Clearly if we are serious about this effort we have to put the money where it matters. Research is a critical investment. The work done by scientists in the agri-food area provides the foundation on which farmers are able to build a competitive business that returns them a reasonable income.
For example, a recent study by the Government of Canada called “The Economic Benefits of Public Potato Research in Canada” found that from 1971 to 1995 public research on potatoes returned $10 to the industry for every $1 invested. Other studies have shown that the return on investment in cereal research is 30%. That means for every dollar we spend we make $1.30 through things like increased exports, higher quality products and lower production costs. This is a very important figure when we consider how important and competitive the world market is for cereals.
With its commitment to both basic and applied research the Government of Canada is working hard with the agri-food sector to make that return grow. Canada's agriculture and agri-food research capabilities amount to a success story. They are key factors in helping our agriculture and agri-food innovate for further economic development and environmental sustainable. With the inevitable downturns that are a fact of life in the market system the strength of the connections between the research and technology development community and the wider agriculture and agri-food sector has never been more important.
In Canada public and private spending on research in the agriculture and agri-food sector amounts to $1 billion, and $350 million of that comes from the Government of Canada. If we think research is expensive just try competing without R and D against the likes of the United States, the European Union and our other main competitors. It will not work.
Producer organizations representing farmers in many commodities are participating in steering committees on research and development at the national level of Agriculture and Agri-Food Canada's research branch as well as at individual research centres across the country. This means that producers are playing a direct role in the direction of research and technology development activities. These activities will lead to new products and new processes to enhance productivity, open new markets and add value to agricultural products.
Through programs such as the matching investment initiative and the Canadian adaptation and rural development fund, producers have contributed both input and funding to support research and technology development activities in a wide range of areas, from biotechnology to environmentally sustainable farming practices. They deserve praise for their proactive efforts.
Research activities are supporting diversification by developing, testing and adapting new crops and techniques to Canadian conditions. Scientists are working to develop new applications for existing crops such as varieties of wheat better suited to pasta. From cranberries to canola, Canadian farmers have access to expertise and advice from researchers on lucrative new crops or niche marketing opportunities.
Research is also helping farmers lower their costs of production, whether through new soil conservation methods or high technology for livestock grading.
Research also facilitates the transition to a more global market. We are in a difficult stage of that transition right now, no doubt. The current situation has been shaped by an almost unprecedented combination of events. But both the sector and its partners in the federal and provincial governments remain actively engaged on all fronts to see that the farm income support system continues to work well and to evolve. That is what the meeting the Minister of Agriculture and Agri-Food has called tomorrow is all about.
In the background, research and technology development activities across Canada are laying the groundwork for future success. That helps explain why Canadian agriculture is among the best in the world. Our expertise in things like irrigation, tillage, crop breeding and disease control is no accident. It is the product of hard work and investments on the research side.
Agriculture is high tech. Farmers make great use of technology. In wise and skilful hands the tools of technology can bring rich harvests. Go to any region in this country and look at its farms and its processing operations to get a measure of that.
Moving technology from the lab to the farm requires a close and ongoing relationship between Agriculture and Agri-Food Canada's 18 research centres and producers in their regions.
Here are some examples for my hon. colleagues to consider. At the Lacombe Research Centre in Alberta, the Canadian Cattlemen's Association is involved in a study using computer vision technology to accurately grade beef.
At the Saskatoon Research Centre the Canola Council of Canada is working jointly with federal researchers on a study using the latest biotechnology methods to improve the quality of canola oil and meal.
At the Horticultural Research and Development Centre in Saint-Jean-sur-Richelieu, work has led to diagnostic standards to correct mineral deficiencies for peas, beans and corn.
The Fredericton Research Centre, in a project supported in part by the New Brunswick Potato Agency, has developed a technology to improve blight forecasting.
These are just some examples, and they dramatically illustrate the point that whether it is new approaches to crop and animal production or learning how to control weeds and combat diseases that can cripple a harvest, what is accomplished at research centres will positively affect us all.
Increasing production is a great thing but we know that we are living on borrowed time if we ignore the long term quality of the soil, water and air. Using water and fertilizers more effectively means improved soil structure, conservation of water and a reduction in the so-called greenhouse gases that are behind global warming.
Hon. members wish to debate the current situation in agriculture, but I would think we should broaden the debate to focus on now and the future, because research is helping to shape the future of agriculture. In many ways it is helping to ensure there will be a future for agriculture.
In assessing the current situation we must not lose sight of what is being done to build on the many strengths of Canadian agriculture, and there are many strengths. Without question the agriculture and food sector in Canada is leading the way in setting priorities and making decisions and investments that will generate long term benefits at all levels of the food system, from producers to consumers.