Finance committee  The first part concerns the situation of farms in Quebec. Clearly, the situation over the past three years has been quite positive for us. The industry has seen exceptional growth. Over the past 20 years, we've seen a strong trend with regard to dairy production, which has grown by 1% to 1.5% per year.

Finance committee  Obviously, this amount doesn't fully offset the losses. Juggling with figures of this magnitude may seem terrifying to the average person, but the amounts allocated certainly don't cover all the losses. People from the insurance industry are here. An actuary's job is to perform the calculation for a loss in perpetuity.

Finance committee  Yes. I don't want to go into too much detail, but it's important to understand that all dairy-producing countries have a surplus of solids-not-fat. The yardstick used to measure the demand for dairy products is butterfat. The demand for butterfat in the United States, Europe, Oceania and around the world is greater than the demand for the non-fat part of milk, which is called solids-not-fat.

Finance committee  It’s an estimated 1,200 farms. Losses will of course depend on how big the farm is, but they are significant for an average Canadian farm with around 90 cows. It’s greater than what the Maritime provinces produce combined. As far as financial losses go, the three agreements together have resulted in the loss of nearly $450 million in gross income yearly, on a permanent basis.

Finance committee  Good question. Initially, when the government made the announcement, it set out $2 billion for the dairy sector. From that amount, it deducted $250 million that was allocated, about a year later, to what the government called an “investment program.” This investment program was not a smooth venture, unfortunately.

Finance committee  Good afternoon. We are here today on behalf of the Producteurs de lait du Québec, but the issues we'll be discussing affect all of the country's dairy farmers. Although dairy producers make up a small part of the population, their contribution to Canada's economy is substantial.

International Trade committee  Thank you for your question. Actually, our members were very concerned when they found out that those programs, announced in October, would not be implemented. We are told that they are not cancelled, but they are being reviewed. Our president, Mr. Letendre, and myself were invited to take part in a consultation at the end of January or the beginning of February.

International Trade committee  Thank you for your question. As I was saying earlier, agriculture is a very capital-intensive sector. To produce $1 in income, you easily have to invest $7 or $8. This is not like in the service sector where you can start a company with a few dollars. The Canadian dairy sector is marked by its great stability.

International Trade committee  We realize the Canadian government made a very laudable effort to keep the supply management system intact. Let's not forget, supply management is an agricultural policy, and because of that, its key levers were maintained. As Marcel pointed out earlier, one of the things that makes this regulatory approach so effective is the strict border control it provides for.

International Trade committee  There is no doubt that a farm operator in Quebec makes slightly less than the Canadian average. As a result of the Canada-EU trade deal and the TPP, Quebec farms will lose an average of some $30,000 a year on a recurring basis. Given the gradual implementation of the TPP over five years, the loss to farmers will be gradual as well, but at the end of the day, it will amount to about $30,000 a year per farm.

International Trade committee  The coverage offered under the programs announced in October lasts for 15 or so years. In order to offset their losses, producers are essentially going to be underpaid. One of the features of agriculture is the poor mobility of resources. It's not easy for farmers to disinvest from one sector in order to reinvest in another.

International Trade committee  Thank you for your question. Around the world, countries support their agricultural industries in one of two ways: through funding or through regulation. Unfortunately, the funding approach doesn't work. In recent decades, the U.S. and Europe adopted funding-based approaches, subsidizing their producers.

International Trade committee  I'm going to focus on two issues. On the technical front, any research that could help us work more efficiently or lead to genetic improvements is certainly welcome. Canada has already established its international reputation in genetics. As for production efficiencies, we have access to academic expertise.

International Trade committee  I would like to thank the members of the committee. I am pleased to appear before you today. The Fédération des producteurs de lait du Québec represents the province's 5,600 farms. The Fédération plays an important role in the economy. We have sales of $2.4 billion, or 3 billion litres of milk.

Agriculture committee  We don't have the authority to implement rules to regulate dairy product manufacturing. Those powers belong to the provinces or to the federal government. For example, the federal government regulates when it comes to cheese manufacturing standards. Quebec has provincial regulations that set out certain guidelines so that yogourt can be called yogourt.