Madam Speaker, I would like to thank my colleague from Surrey—Newton for his excellent speech.
I have the honour to speak to the Canada-U.K. trade continuity agreement.
As members know, the agreement will preserve the existing commitments between our two nations. It will help strengthen our trade relationships as we prepare to begin official bilateral talks on free trade in the coming year.
The United Kingdom is already a key market for Canada's agriculture and agri-food sector. We exported an estimated $553 million worth of agri-food products and seafood to the United Kingdom last year.
The government always takes a balanced approach to trade agreements, to reflect the diversity of our agriculture and food industry. On top of ensuring stability for our agri-food exporters, we will continue to support our supply management system for dairy, poultry and egg farmers across Canada. Furthermore, I would remind members that our support for supply management did not stop us from signing 15 trade agreements with a total of 51 countries, giving our farmers a competitive edge in two-thirds of the global economy.
The same goes for the U.K. agreement. The trade continuity agreement fully protects Canada's dairy, poultry and egg sectors and provides no additional access for cheese or any other supply-managed product. This is yet another sign of our government's strong support for Canada's supply management system and the rural communities it supports.
The Government of Canada is also committed to not opening up access to the market for supply-managed products in future trade agreements. At the same time, we have kept our promise to fully and fairly compensate our farmers for the impacts of CETA and the CPTPP.
Last November, the Minister of Agriculture and Agri-Food announced a major investment for Canadian milk, poultry and egg farmers. She announced $1.4 billion in direct payments to Canadian dairy farmers over the next three years based on their quota. That is $468 million by March 31, 2021, $469 million in 2021-22 and $468 million in 2022-23.
For instance, a farm with 80 cows will receive a direct cash payment of roughly $38,000 a year for the next three years. This funding is in addition to the $345 million that was already paid to dairy farmers in direct payments last year and the $250 million for the dairy farm investment program. This brings the total compensation to dairy farmers in response to CETA and the CPTPP to more than $2 billion.
The minister also announced that for supply-managed chicken, egg, broiler hatching egg and turkey farmers, we will provide $691 million for 10-year programs. These programs will respond to the demands of the poultry and egg working group, following the ratification of the CPTPP, and will support investments in their operations to improve productivity for further market development. Program details will be designed in consultation with sector representatives and launched as soon as possible.
Our government remains committed to providing the sectors with full and fair compensation for the Canada-United States-Mexico Agreement. We also remain committed to supporting our supply-managed processors for the impact on the markets. Thanks to the funding we announced on November 28, dairy, poultry and egg farmers will be able to make key investments in their operations and improve their activities to be even more competitive. This will help them to be more efficient and more innovative. The investments they make in their operations today will allow our young farmers to position themselves for growth and success in the future.
Our important announcement clearly shows that farmers can count on our government to keep its promises and do everything in its power to help them and help the next generation succeed. These farming families are the heart of our communities.
We know that our dairy, poultry and egg farmers want our system to stay strong and sustainable, and we want that too. We believe that supply management is a pillar of rural prosperity in Canada, and it works. It is an effective economic model. It brings stability and prosperity to our family dairy, poultry and egg farms.
Our supply-managed producers and processors have deep roots in our rural communities. Some farms and food companies go back generations. Others were founded more recently by passionate young women and men. One such example is Dalew Farms, which is where I buy local meat here in my region.
We will absolutely protect our supply management system. There is no question about that. This system guarantees a supply of high-quality products for Canadian consumers. It is a model of stability that provides high-quality products at fair, predictable prices for farmers, processors and consumers. Supply management also provides a living for farming families and sustains rural communities across the country. Our milk, poultry and egg farmers are powerful drivers of our economy, with nearly $12 billion in farm gate sales, creating more than 75,000 direct jobs in Canada's production and processing sectors.
Beyond farms, dairy and poultry processing contributes about $22.6 billion to our economy. In all cases, our producers and processors deserve our utmost respect. They work hard every day, and the entire family is often involved in making the business successful.
During the COVID-19 pandemic, they overcame surpluses caused by changes in demand, labour shortages and market volatility to ensure that our grocery store shelves were fully stocked with their excellent dairy, poultry and egg products.
Our government was proud to help our supply-managed farmers weather the storm. We launched the $50-million surplus food rescue program to help food banks and other organizations redistribute surplus food, including poultry, turkey and eggs, to Canadians in need.
This program does not just provide Canadians with nutritious food from our agricultural exports during a difficult period. It also helps poultry and egg farmers stabilize their markets. In addition, to help dairy farmers manage their excess milk, we increased the Canadian Dairy Commission's borrowing limit by $200 million so processors could temporarily store cheese and butter and avoid waste.
Our egg, poultry and egg farmers are always looking for ways to improve. They are innovating and are proud of putting the best food on our tables. I am pleased that the supply management system provides them with a fair return on their efforts and investments. Our farmers and processors want to have a strong and prosperous business that they can hand down to their children. We will help them achieve that.
Agriculture is one of our government's priority sectors for stimulating Canada's economic growth. We will continue to invest in this sector. We will continue to listen to our farmers and processors as we set the best course for Canada's agriculture and agri-food industry. We will continue to ensure that they are protected under the Canada-United Kingdom trade continuity agreement and under all future agreements.