Agriculture committee  I'd have to agree with Minister Kelly. First and foremost, we face a labour crisis in Canada as it pertains to the manufacturing sector, which is acutely felt in food processing. We need greater-skilled workers, access to labour forces, and that will immediately improve our competitiveness and ultimately profitability.

Agriculture committee  That's a very good point. Certainly I agree that the size and scale of the fees that are being imposed on suppliers, in some cases, represent the entire operating margin of smaller and medium-sized businesses. It becomes unprofitable very quickly. That business can shut down with one simple notice from a retailer.

Agriculture committee  It's an excellent question. We are calling on the federal government to help establish the framework that the provinces and territories can adopt, so that there's a consistent implementation of a grocery code of conduct that is ultimately enforceable across the country. We think that the federal role is a key role in determining basically the ability to control price inflation for the consumer and to protect our industry and our primary producers who ultimately produce the food that ends up on grocery store shelves.

Agriculture committee  Thank you very much for that question. I would have to say yes. We have a fairly uncompetitive landscape in Canada. Land values, taxation and regulatory reform.... Some of that has created part of the quality value proposition that we have for export of food products. We have a very safe food system in Canada and one that we recognize as being a part of our value proposition, but at the same time regulatory reform to remove some of the barriers to competition is needed in order to—

Agriculture committee  There are a number of ways that retailers can enforce, place or shift their risk for innovation, development and capital plans to the supplier, and ultimately the primary producer—everything from short payment of invoices to penalties on fulfillment. Right now order-in quantities on certain SKUs and categories are very erratic, and ordering systems are automated at the retail level; therefore, all of those algorithms that run those ordering systems are based on pre-pandemic levels.

Agriculture committee  Good afternoon, Chair and committee. Thank you for the opportunity to appear today. I'm Denise Allen. I'm president and CEO of Food Processors of Canada. For more than 35 years, we have been the leading voice of Canada's food and beverage processing facilities. The recent allowance of overconsolidation in Canada's grocery retail sector has resulted in only five retailers controlling more than 80% of what Canadians can purchase, placing our food system and supply at risk.

Finance committee  Sure, and thank you very much for that question. Currently, we're seeing a shortening of payment terms being requested across the board, especially in the food distribution side of the business. A lot of businesses are moving to cash on delivery, or COD. We know this is really challenging if you can't generate cash and you can't access loans in a crisis.

Finance committee  Thank you, Chairman and distinguished members of the committee, for the opportunity to present as you examine concerning matters related to COVID-19. My name is Denise Allen, and I am the president and CEO of Food Processors of Canada. For more than 35 years, Food Processors of Canada has been the trusted, leading national voice of the Canadian food and beverage processing sector.