Mr. Speaker, I am pleased to address the House today as we open an exciting new chapter on the great story of agriculture and the food industry in Canada.
Our government's top priority is the economy, in which agriculture plays a key and vital role. We believe that all Canadians, including farmers, should be able to position their businesses to capture the marketing opportunities that are open to them. We do not believe in the coercive powers of the state to tell people how to sell the products of their own work. We also do not believe in jail terms for western producers who sell their grain to whomever they want.
That means giving western Canadian wheat and barley farmers the freedom to make their own business decisions, including when and to whom they sell their grain. It also means giving food manufacturers in the rest of Canada, including the riding of Etobicoke—Lakeshore that I am proud to represent, better access to western wheat and barley so that they can compete globally.
The proposed legislation is about promoting entrepreneurship, innovation and forward thinking; skills that over the past 100 years have made Canada's Prairies the breadbasket of the world. These are skills that have helped agriculture lead the way in driving Canada's economic recovery.
However, for too long, 68 years to be exact, western Canadian grain growers have been held back from bringing these skills to grow new opportunities in their wheat, durum and barley fields. Antiquated Canadian Wheat Board legislation designed for a different time and different circumstances, World War II to be more precise, has cast a chill on innovation and marketing savvy on the Prairies.
Over the years we have seen farmers and other entrepreneurs seeking to add value to their crops by investing in processing beyond the farm gate. They ran into rules requiring them to buy back from the board the very crop they paid to grow, fertilize and harvest. As a result, we have seen a number of processors set up shop in the United States and Asia instead, taking the jobs, growth and export opportunities south and east with them.
I cannot think of an industry that could thrive under this kind of red tape. It is no wonder that non-board crops like oats, canola and pulses have taken off, as they are not subject to the Canadian Wheat Board's stifling web of rules.
Paul Orsak, a farmer near Binscarth, Manitoba recognizes this. He said:
It's not just about marketing choice and finding a competitive bid for my grain. It's about commercializing the industry as opposed to having it stagnate under a heavy wet blanket of a government agency which interferes with market signal and people's willingness to invest.
Those who are looking for an economic analysis need only listen to the Canadian Chamber of Commerce when it said:
The current single-desk model restricts valued added investment in wheat and barley, significantly diminishing the ability of farmers and industry to respond to market demands and earn a premium return in recognition of the innovation provided, including innovation in value-added processing.
Look at the success story of oats when they came out from under the monopoly. In Manitoba alone, the acreage of oats has increased by 200,000 acres since its removal from the Wheat Board's control. This has allowed for the opening and expansion of Can-Oat in Portage La Prairie, Manitoba which employs 125 people in value-added manufacturing jobs.
Let us talk about the potential of new jobs and hundreds of millions of dollars in value-added investments that could come to Canada.
I would remind members that the food processing industry in Canada is a major economic driver. It is our largest manufacturing sector in the country with $90 billion in sales last year and record exports exceeding $20 billion. It has outpaced the rest of manufacturing in terms of growth in sales, GDP and labour productivity in the past five years. It is Canada's largest manufacturing employer generating 270,000 jobs. It is the largest customer for Canadian farmers purchasing almost half, or 45%, of their production.
These are the types of value-added industries and jobs that will grow in Canada if farmers have the freedom to market their products as they so choose.
Our government is working with the entire value chain to create an open market that attracts investment, encourages innovation, creates value-added jobs and builds a stronger economy. We are committed to delivering marketing freedom to our western wheat, durum and barley growers.
Western Canadian grain farmers have already put our pulses and canola on the map with more than $4 billion in exports last year. Who is to tell them that they do not have what it takes to market their wheat, durum and barley as well? This is paternalism at its worst. Marketing freedom will breathe new life into Canada's wheat and barley industries.
Earlier this fall, Alliance Grain Traders in Regina turned the sod on a new pasta plant and hopes to buy quality Canadian durum wheat directly from our hard-working producers on the Prairies. There is no buyback to get in the way and no middleman. This is one big step forward for western Canadian agriculture and the Canadian economy. The plant opening in Regina is scheduled for next year. Alliance is already a major presence in the pulse industry here in Canada. It has pasta plants worldwide. We welcome it and we welcome its investment in the future of prairie agriculture.
Canadian durum is the ingredient of choice in quality pastas around the world, even in Italy where people know a thing or two about pasta.
Last year, durum drove almost three-quarters of a billion dollars of our agriculture and food exports. By adding more value to those exports here in Canada, this investment will create jobs and give an even greater boost to our economy.
Western hard wheat is higher in protein and suitable for certain foods. Ontario soft wheat is currently used for certain products but soft wheat must be blended with hard wheat to make Asian noddles, which are manufactured in my riding of Etobicoke--Lakeshore. A manufacturer who sells Asian noodles into the North American and Asian markets is located in my riding. The company would like to be able to buy blended flour made from both Ontario soft wheat as well as western Canada hard wheat.
Right now, the Wheat Board places restrictions on western Canadian wheat farmers to which their Ontario counterparts are not subject. Ontario wheat farmers have the freedom to sell any portion of their crop to whomever they choose. They have many different ways they can do that. They can do it by pooling, by forward price contracts or by cash pricing through the Grain Farmers of Ontario. They can sell by resting orders, by defined destination contracts and by on-farm pickup. They have flexibility and freedom to sell it how they want. It is not so for western Canadian farmers.
The opportunities for both western Canadian and Ontario wheat are as follows. They can sell that hard and soft wheat into the growing Asian market or, better yet, they can process blended mixtures into flour domestically and sell the flour directly into the rapidly expanding Asian market as 45% of the Asian wheat flour market is devoted to noodles. Ontario processors could produce custom blends and become a one-stop shop. Currently, they often need to buy wheat separately from Australia. We are missing out on opportunities for processing in Canada.
The current Canadian regime not only hurts western grain farmers but it hurts all grain farmers in Canada, including wheat farmers in Ontario.
Our government's top priority is the economy in which the agriculture industry plays a vital role. Our government remains focused on strengthening our economy and creating jobs for Canadians. We know marketing freedom will drive economic opportunities for our grain industry and the food processing industry.
By attracting innovative new ventures, an open grain market will attract investment, encourage innovation, create value added jobs and build a stronger economy for all Canadians. It will sharpen the entrepreneurial skills of our young and established farmers to grow their businesses, increase productivity and create wealth and prosperity in Canada.