Mr. Speaker, I will be sharing my time with the hon. member for Lambton—Kent—Middlesex.
I am pleased to have the opportunity to address the motion currently before the House.
Each day in this place we as parliamentarians collectively undertake to explore and debate numerous subjects of a widely varying degree of weight and sensitivity. This issue is perhaps one of the most consequential topics examined by this parliament. I do not wish to come off as sounding melodramatic, but each and every one of us likes to eat each and every day. It is for that very reason that we must decisively act now.
Tonight we are participating in an emergency debate. It is an emergency because Canadian farmers cannot wait six months for further action.
It is no understatement to say that Canadian agriculture today finds itself at a crossroads. The current crisis, if left unchecked, will without a doubt spell certain disaster or perhaps even a virtual collapse in market share for the small and medium sized members of this founding national industry.
I would venture to say that there should not be a single member of this House who is not cognizant of the massive financial challenges regularly faced by the farming communities across this land.
Drought, frost, disease, high overhead costs and fierce competition are all factors dealt with on a regular and recurring basis by our primary producers.
However, the impression should not be given that these challenges have not been without benefit. As a lifelong farmer myself, I can honestly say that, due in part to these daily complications, the Canadian agricultural industry has evolved into one of the most competitive and efficient of its kind in the world.
With that being said, when one adds new and complex problems such as low and dramatic vacillations in commodity prices upon the already heavily laden shoulders of our farmers, is it any wonder that we are now faced with a crisis.
I represent one of the largest agricultural producing constituencies east of the Manitoba border. In my home county, Huron county in southwestern Ontario, we have nearly half a million hogs, a number that exceeds the human population of Huron by a factor of 7.
With this in mind, people can understand that the current drop in the price of pork has devastated this commodity group. For those who might not be aware, only a few short months ago a pork farmer would receive somewhere in the neighbourhood of $2 per kilogram for his product. That same producer today would be fortunate to receive 60 cents.
The problem posed by this is that the input costs remain. It has been estimated that the average pork producer will take a loss of $60 for every fat hog sold at today's prices. I understand it is even higher than that.
Over the last number of days I have listened and corresponded with untold numbers of pork farmers in my riding of Huron—Bruce. We have been told that if we do not act immediately and if help does not coming right away, their doors will be closed by Christmas. They have no choices available. They cannot afford to keep their pigs and they cannot afford to sell them.
This is a sad reality, but worse is the statistical probability that this slump will expand into other sectors. Cash crops, beef, sheep and lamb are all at risk.
I think members would agree that failure is simply not an option for us. Surely adequately feeding our population should be paramount in the minds of any responsible legislator. In addition, we must also be aware that agriculture now enjoys the status of big business in Canada. In fact, in addition to employing thousands last year, it contributed approximately $20 billion to our national economic output.
The world population is expected to exceed seven billion by the year 2000, a fact that means global production of sustenance must increase exponentially. If given the chance, Canada can assume a leadership role in this endeavour.
The potential is endless only if we maintain a stable economic foothold in the markets. Our agriculture industry has already grown in leaps and bounds during the course of the 20th century, a trend that I strongly feel should be encouraged to continue.
Sadly, as we progress toward the next millennium, the days and the ways of the small family farm face the very real prospect of being moved out to pasture. We are approaching the proverbial fork in the road.
With the rapidly developing and expanding global economy, we can no longer blindly pump public money into controversial and bureaucratic ad hoc programs.
Farmers need a hand up, not a handout. Strategic investment into key areas of growth is essential. Failure to do so promises to be the final nail in the coffin, that of the family farm.
Members must understand that the family farm has been the backbone of the agriculture sector for over a century; a backbone that if broken will seriously cripple our nation's ability to ensure certain quality controls, availability and security.
If something is not done immediately, I see Canada's farming industry then approaching the same slippery slope that our American neighbours fell victim to. Today U.S. corporate giants such as Tyson, Perdu Poultry and Archer, Daniels Midland have the ability to use their dominance and control over the food supply to hold the American consumer hostage. We simply cannot permit that situation to occur here.
We need look no further than our largest trading partner and neighbour to the south to see the potential danger lurking around the corner. In the United States farming is corporate territory controlled exclusively by market fluctuations, shareholders and large multinationals, a reality that should be unsettling to say the least.
There are those among us who believe that bigger is always better. To those people I would simply say that bigger can be good but it does not always mean more efficient. In actuality when a corporation reaches transnational status it usually means power, not necessarily accountability or effectiveness.
One only has to read the mission statement of corporations such as ADM, Monsanto or ConAgra to see that their primary objective is increasing the accumulation of wealth for their shareholders rather than advancing the business of farming for any greater purpose.
To that end I would draw attention to the fact that in the United States poultry industry 38 firms now have 240 processing plants that are responsible for almost 98% of all U.S. chicken. In reality there are only 38 chicken farmers in all of the United States.
In my riding of Huron—Bruce I have 150 operations. In fact, the U.S. chicken farmer is little more than a labourer who receives a meagre 3 cents to 4 cents per pound to grow broilers, a number that would certainly not be acceptable by our own chicken farmers.
It is also important to mention that this figure has remained virtually stagnant and unchanged since the mid-1980s. Stability is one thing, however the unfortunate reality is that the cost incurred by the American farmer has not remained static. Mortgages, taxes and land costs are on the rise. As a result their farmers are subjected to the whims of the corporate masters while being forced to take all the financial risks associated with managing a farming operation of this type. Even with their high risk factor they have no chance of increasing their own profitability, unlike our supply management sectors in Canada.
As unsavoury as this type of arrangement sounds, it is not isolated to the American poultry industry. To the contrary, it is the norm and not the exception in almost every facet of American agriculture. In sheep slaughter the largest four national producers control nearly 70% of all production. IBP, ConAgra, Cargill and Beef America command dominance over a whopping 78% of the entire American beef sector. In the U.S. 20 feed lots market over 50% of the fed beef. In turkey the four U.S. giants, Rocco Turkeys, Hormel, Carolina Turkeys and ConAgra, account for 35% of the business, and these numbers go on and on.
As a rural Canadian it frightens me to think we might be moving in the same direction but that is the reality of the situation currently before us. In a nutshell, if we fail to act immediately our small and medium size producers are doomed. With them out of the way their larger competition will simply move in and take over. Rural Canada then becomes a little more than a branch of corporate America.
I would simply ask all our colleagues to be aware of the gravity of the situation. Talk is cheap and the price of pork even cheaper. In a world of high input costs, unpredictable growing conditions, El Nino, taxes, the Asian flu and the like, the margin of profit for farmers is shrinking fast.
The real question is should we be asking ourself today where do we see Canadian agriculture in the next century. We have a reputation for quality. It could be said that even with the new high tech integration and massive demands on our time Canadian farmers are considered by the world to be among the best and the brightest. Our commitment to excellence is strong but help is needed if we are to continue to be outstanding in our field.