44th Parl. 1st Sess.
June 16, 2022 10:00AM
- Jun/16/22 6:46:08 p.m.
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Madam Chair, first of all, I want to acknowledge all the firefighters who were here today and thank them for their sacrifice.
Vladimir Putin's unwarranted invasion of Ukraine has triggered the largest shock to the global food system in the past 12 years. It has caused global food prices to rise over 30% since January of this year, and over 60% since the beginning of the pandemic.
Just last month, when I was in South Sudan, I met with some of the people who are being directly impacted by the rise in prices, with over 75% of South Sudan facing severe food insecurity.
The World Food Programme estimates that an all-time high of up to 49 million people in 46 countries could be at risk of falling into famine or famine-like conditions in 2022. The humanitarian situation in Ukraine and its neighbouring countries, as well as the global food security crisis, are top priorities for me and our government. We continue to work closely with our allies and key international partners to respond effectively to this rapidly evolving, multi-faceted crisis.
Over the past weeks and months, I have spoken with my G7 counterparts, UN officials and the head of the World Food Programme to see what more we can do to help. We have been acting to support the most vulnerable during these unprecedented times.
In the Sahel, in April, I announced over $82 million to support United Nations agencies, the International Committee of the Red Cross and non-governmental organizations in their work to address acute malnutrition and food insecurity.
In the Horn of Africa, I announced $73 million for gender-responsive humanitarian and development assistance to meet the needs of people in Kenya, Ethiopia and Somalia to respond to the severe drought conditions that could result in over 20 million people across the region needing emergency food assistance in 2022.
In Syria and the neighbouring countries like Iraq, Jordan, Lebanon, Egypt and Turkey, we are seeing refugees fleeing from conflict who need additional support, including food assistance, which is why we announced over $169 million in humanitarian funding to help people meet their basic needs.
In Yemen, where years of conflict have caused the suffering of so many people, especially women and children, who bear the brunt of the crisis, we announced over $62 million to provide life-saving food and support for health care, clean water and sanitation.
We know that Canada cannot be an island of stability in an ocean of turmoil. Eventually, the ripples of conflict will reach our shores. We know too well that food insecurity and conflict are part of a vicious cycle. People who are desperate make desperate choices to feed their families, with poverty and food insecurity leading to political unrest and social tensions, and fuelling conflict.
Since the invasion of Ukraine by Vladimir Putin, we have seen public demonstrations in many places, which have left us concerned about the risk of broader social unrest. Citizens are taking to the streets, protesting against the rapidly increasing food and fuel prices. These strikes and protests are happening against the backdrop of continuous conflicts and violence driving acute food insecurity in countries like Ethiopia, South Sudan, Syria and Yemen.
It is why we have been taking action and will continue to take action on food insecurity, because, at the end of the day, international assistance is conflict prevention.
As we speak today, millions of people cannot meet their basic needs for food and clean water, with women and children most severely impacted. It is why our feminist international assistance policy looks at the unique challenges that women and girls face. Women's involvement is essential in order to find long-lasting solutions for all. Our focus on the nexus between conflict and food security must be done with a clear understanding of gender dynamics and support of women as positive agents of change.
Given the rapid rise in food insecurity, especially among women and girls, we must respond to the immediate humanitarian needs while simultaneously supporting the resilience of vulnerable families and communities. This means investing in agriculture and food systems. While I was in South Sudan, I met with women farmers who were working on innovative, sustainable solutions for agriculture, feeding not only themselves and their families, but their communities, the surrounding regions and their country.
We are working to urgently implement long-term solutions, solutions that promote sustainable peace and break the vicious cycle of poverty, hunger and conflict.
Against this backdrop of large-scale challenges, we have been working with our partners in the G7, with multilateral organizations like the World Food Programme, UNICEF and UNHCR, and with non-governmental organizations like the Canadian Foodgrains Bank, Save the Children and Nutrition International, so that we can make sure that we have a coordinated and effective response to this challenge.
We are already mounting a considered and comprehensive response to respond effectively to the growing food security needs. We are already providing over $514 million in humanitarian assistance in response to the global food crisis to address growing emergency needs, both in Ukraine and in more than 40 developing countries most affected by this crisis. Our funding is supporting activities such as the provision of emergency cash, vouchers and in-kind food assistance, as well as effective nutrition intervention.
In addition to providing emergency life-saving humanitarian assistance, Canada is also committed to addressing the root causes of food insecurity. Through development assistance, we work to support the resilience of agriculture in vulnerable countries impacted by the global food crisis. In the last fiscal year, Canada provided over $547 million to support the resilience of agriculture and food systems in developing countries.
Since the start of the Russian invasion of Ukraine, Canada has provided over $125 million to the African Development Bank to support small and medium-sized agri-businesses in Africa, and to the International Fund for Agricultural Development to support climate-smart agriculture in rural communities located in developing countries.
We are also doubling our investments in the Agricultural Market Information System, and we will work in close collaboration with partners to look into expanding it to monitor the fertilizer crisis. We believe that advocating for market transparency is crucial to keeping prices down, stabilizing price volatility and ultimately reducing poverty and food insecurity for the poorest and most vulnerable people who struggle to access food.
Canada will continue to provide both humanitarian and development assistance in response to this evolving crisis. We must stand in solidarity with Ukraine and those affected by this war. We must stand in solidarity with countries and communities in the developing world that are now facing the pressing food security crisis triggered by Vladimir Putin's unnecessary and inhumane war. We must strengthen the weaknesses in agriculture and food systems globally, in partnership with nations that need assistance. I also look forward to working with Canadian NGOs in matching and enhancing their efforts.
We must act urgently to address the immediate needs in this food insecurity crisis.
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- Jun/16/22 6:55:11 p.m.
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Madam Chair, the member rightly points out that this is a multi-faceted problem. First of all, we have an immediate crisis to feed the hungry because of the food that Vladimir Putin is not allowing to leave the ports, like Odessa. That is the immediate need.
There is also an extra challenge now. The growing season for next year is going to be reduced because of the lack of fertilizer. We are now looking at how we can increase fertilizer so that we can have enough to grow. In addition to working with my colleague, the Minister of Agriculture and Agri-Food, and also working with multinational partners, we are looking at trying to increase the fertilizer so that we can have more.
The third most important step is to make sure that we have a different solution, a solution for agriculture, so that places in Africa can be self-sustaining. I have more to say about this later.
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- Jun/16/22 6:56:13 p.m.
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Madam Chair, the Standing Committee on Agriculture and Agri-Food is currently studying the emerging food crisis. One of the things that we have identified in relation to the Ukrainian conflict is the need to open up the ports so this year's crop can be exported. The crops are ready to go, but they cannot leave. It appears that the shelling also targeted critical infrastructure.
I would like to know if there have been any developments and how Canada is involved in these negotiations to open up the ports.
In committee, we have also discussed the urgent need for temporary storage facilities in Ukraine. Canada could provide significant assistance in this respect. Could my colleague elaborate on that?
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- Jun/16/22 6:58:28 p.m.
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Madam Chair, I am really concerned about the situation where food and hunger are being used as a chip in Putin's war against the people of Ukraine, and now the world. It speaks to a larger destabilization that is happening. We are just learning about the Colorado River. With 80% of it going to agriculture, it feeds 40 million people, and the climate crisis in the southwest is now going to have severe impacts on agriculture. We depend on that agriculture as well. We have Putin blocking the ports, using food as a hunger weapon, and we can see increasing destabilization from climate change.
I want to ask the minister what steps Canada will be taking in the long term to ensure food security and to ensure that we can actually respond to this destabilizing global reality that we are living in 2022.
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- Jun/16/22 6:59:38 p.m.
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Madam Chair, Canada has a lot to offer, given the agricultural heartland within the Prairies. I also mentioned that we have a lot of NGOs in Canada that we can work with. I know there are significant investments being made in agriculture technology and in finding new methods. That is something that we can continue to leverage.
We have to be mindful that the impact of climate change is real and we have to adjust to it. We also have to look at the supply chain. COVID has shown us that we have to look at supply chains differently. We have to look at the war that Putin has caused. As we look to increasing our own food production in our own country, we also have to look at what tools we can use to assist the global south. That is also very important. As we look at how the world is coming together over Ukraine, we need to send a very strong message to the global south that is suffering needlessly because of this war.
Canada has been there for them, but we want to look at how we can use our technology, look at water management systems, work with partners and get those regions of Africa to be more self-sufficient with technology within their own needs, so that we can change all the parameters around the supply chain and not have to rely on traditional systems.
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- Jun/16/22 7:04:14 p.m.
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Madam Chair, I want to say at the beginning of my intervention that I am encouraged by the words of the minister that the Liberal government now understands the importance of things like fertilizer and gene editing and seed technology and the role they will play in the future for food security, because I would think we are in the midst of a food security crisis. This is not something that will happen; this is something that is happening right now. I would hope the minister understands the critical geopolitical role that Canadian agriculture can play, not only here at home but around the world.
To put this in perspective, Ukraine is the breadbasket of much of Europe, Asia and Africa. The uncertainty that is going around with this conflict is certainly have a significant impact on the price of these commodities, and not only in Europe. We were very naive if we thought we were not going to be impacted here at home as well.
We had the honour of having the Ukrainian minister of the economy at committee the other day, and I want to mention a quote from him. He said that Ukraine is seeing a catastrophe on top of a catastrophe, with a global impact seen since World War II, and that farmers have dropped their breadbaskets to stand in breadlines. That is very apropos and puts some perspective on how serious this situation is.
We also had the Ukrainian agriculture minister at committee. She said that Russian soldiers have occupied 23% of Ukraine. They are stealing grain, destroying critical infrastructure and blockading Ukraine's ports. This will seriously impact Ukraine's ability to export whatever harvest of commodities it may be able to achieve this spring and again next year. As the minister said, this will lead to social unrest, famine and, very likely, conflicts around the world, especially around the Horn of Africa. How we respond here in Canada to this tragedy and this food insecurity crisis is critical.
I am going to go in a different vein than the minister did, because I think Canadian agriculture has a key role to play in addressing this food insecurity crisis. I was speaking to Canadian farmers across the country over the last few weeks and months as this started to unfold, and every single one of those farmers has said it is our moral obligation to step up and do everything we possibly can to address this food shortage crisis. They want to be there to help their allies and their friends in Ukraine. Certainly for us in western Canada especially, our agriculture sector was developed and the ground was broken by Ukrainian immigrants who came to Canada more than 100 years ago. We are in their debt.
However, for Canadian farmers to be able to do that, to reach that potential and to reach out and help to address this food shortage, they have to have the tools they need to be successful. Farmers certainly understand that there are many variables outside of their control, but there are some things they rely on from the federal government perspective to have certainty. These things include competitive regulatory and tax regimes, an efficient and reliable supply chain, bankable and efficient business risk management programs and access to global markets. I would argue that unfortunately the government is failing agriculture on all of these pillars right now, which is certainly handcuffing our ability to reach our full potential, to increase our yields to not only meet our commitments, not only here at home but around the world, and increase our ability to step up in times of crisis, as we are seeing right now.
One example of that is the federal carbon tax that the government has imposed on Canadian farmers. We heard at committee today from the Grain Farmers of Ontario about Bill C-8, which is what the Liberals have said is the carbon rebate program to farmers. The message that we are getting from the Liberals all the time is that the carbon tax is revenue-neutral, that whatever a Canadian is paying into that carbon tax, they are getting back. However, we heard in testimony today from the Ontario grain farmers that they are getting back between 13% and 15% of what they pay in the carbon tax. That is a long way from being revenue-neutral. In fact, I would say that it is misleading Canadians when the government says this program is revenue-neutral. It is far from that. The impact is that it is hurting Canadian farmers in their ability to innovate, invest and grow their business and certainly to grow their yields.
The CFIB pretty much ratified those numbers from the Ontario grain farmers, saying that what the farmer is going to be paying in a carbon tax is going to go from $14,000 on average to $45,000 on average as a result of the increase on April. According to Finance Canada today, the average farmer gets back $800 a year. The farmers are putting in $45,000 and getting $800 back. Again, that is nowhere near revenue-neutral.
This program is devastating and unnecessary to Canadian farmers, especially when we have put forward a much better solution in Bill C-234, which would exempt farm fuels from the carbon tax, especially natural gas and propane for heating barns and drying grain. This would allow farmers to reinvest that money in the things they need to improve their operations.
The Food and Agriculture Organization has said that the linkage between energy prices, such as the carbon tax, and fertilizers has put the agriculture sector at significant risk. Renowned agriculture trade expert Robert Saik has said we must be making decisions based on science, not ideology, to ensure the sustainability and health of the agriculture sector.
The World Food Programme has said that 800 million people are facing food insecurity around the world. As a result of the conflict with Russia and its illegal invasion of Ukraine, they are expecting another 13 million people to be at risk of food insecurity. That shows us how serious this situation is and how important it is for Canadian farmers to be competitive and able to reach their potential.
To put that in perspective, the United States has not put a carbon tax on its agriculture sector. The United States is our biggest trading partner but also our biggest competitor on the global stage. In fact, the United States is also not punishing its farmers with a tariff on fertilizer. Canada is the only G7 country in the world that is charging a tariff on fertilizer.
We have asked the Liberal government to exempt the tariff on fertilizer purchased from Russia before March 2 to ensure that Canadian farmers are not carrying that burden, and I want to be really clear here: Vladimir Putin is not paying that tariff. The Russian military is not paying that tariff. Only Canadian farmers are paying that tariff. Now we have seen the numbers, and that tariff is going to cost Canadian farmers, especially in eastern Canada, about $150 million a year.
That is $150 million taken directly out of the pockets of Canadian farmers and going to the Liberal government's coffers. Not only is that a financial hit, but as a result of that we are going to see farmers using less fertilizer. The consequence is that we will have smaller yields. We already had a 40% decrease in yields last year because of weather issues. Depending on the weather, if we see that yield decrease further or not return back to our normal, it is going to have a significant impact. We are going to see food prices increase, not only around the world but here at home as well, and it will impact our ability to try to address food insecurity issues around the world. This only punishes Canadian farmers. It does not punish Vladimir Putin.
We also heard from the Ukrainian minister of agriculture that Ukraine needs seeds, machinery, fuel and temporary storage facilities for its grain and commodities. What it needs is for Canadian agriculture to be firing on all cylinders to make sure we can step up and help when it is needed. However, at this time of a global food security crisis, again when we need Canadian agriculture to be punching above its weight, the Liberals have decided to put burdensome red tape, regulations and taxes on Canadian farmers.
Another example is front-of-package labelling, which is a $2-billion bureaucratic burden on the industry. Not only will that impact Canadian beef, pork and veal farmers, but it will also impact our processors, manufacturers and consumers. We are talking about the food insecurity crisis and the impact it would have on people around the world, in Europe and the Horn of Africa, but food insecurity is also an issue here at home. If we cannot take care of our own, how are we expected to step up and take care of others in their time of need?
This is also sending a very frightening message to our trading partners. Why should they be importing Canadian beef and pork when we are admitting to the world that we feel our products are unhealthy?
In conclusion, in a time of crisis, instead of treating Canadian agriculture with disdain or as a carbon tax cash cow, the Liberals need to see modern Canadian agriculture and our farm families as a way out, as a way to step, as a key geopolitical tool in the fight against totalitarianism and the likes of Vladimir Putin.
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- Jun/16/22 7:19:07 p.m.
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Madam Chair, I am really happy that my respected colleague asked that question because it gives me the opportunity to reiterate the fact that there is, what I will call, a misconception that Canadian agriculture is the problem, when I would profess that Canadian agriculture is the solution.
We have seen how Canadian farmers have improved their operations and the technology and innovation that has happened. I spoke about gene editing. There are seed varieties that are drought resistant and pest resistant. This has allowed us to grow higher yields on the same amount of land with a fraction of the inputs. Whether it is spray, fuel, zero tillage or precision agriculture, we are making those advances, and we are doing that without having to pay a carbon tax. That is what I say is an incredible success by Canadian agriculture.
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- Jun/16/22 7:20:40 p.m.
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Madam Chair, if farmers can find ways to be efficient and more cost-effective while protecting their land and improving their yields, they will do it. They use fertilizer as efficiently as possible through programs such as the 4R stewardship program.
To my colleagues's question, it is critically important that, if farmers are using less fertilizer, yields will go down. It is a simple fact. When we are facing a global food crisis, that is not direction we want to go.
The Liberals have also said that they want a 30% reduction in fertilizer emissions, whatever that means, but what it means is we we are asking Canadian farmers to use less fertilizer when they are doing it as efficiently as possible. In Canada, we are 70% more efficient in fertilizer use than any other country on the planet. I will say again that is a great success story for Canadian agriculture. It is something we should be embracing and not criticizing.
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- Jun/16/22 7:23:35 p.m.
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Madam Chair, the economic situation is out of control. People are worried about inflation, and rightly so. For instance, gas is at $2.24 a litre today in my riding, Joliette. This is devastating. The hardest hit are obviously low-income families whose obligations force them to drive a lot. The current reality is also really tough for businesses in certain sectors such as transportation, of course, as well as agriculture. Rising prices will help the energy transition in the long term, but will increase misery in the short term.
The cost of housing is no more encouraging. Finding available affordable housing has become mission impossible. The price of houses and condos has exploded. However, according to experts, rising food prices could soon overtake energy and housing prices by a wide margin. The world is at risk of a food shortage this year, which will lead to skyrocketing prices and a serious global famine.
The current situation is in large part a result of the war in Ukraine. Russia and Ukraine are the world's breadbasket. These two countries account for 30% of global wheat exports and 20% of global corn exports. They also export 65% of the world's sunflower oil. Russia has significantly cut back on its exports so that it can continue to feed its citizens at the same cost. As for Ukraine, its existing reserves are difficult to export, and there is a great deal of uncertainty about potential future harvests.
Food prices in Ukraine are skyrocketing, and Ukrainians could be facing a famine. For example, according to the United Nations Food and Agriculture Organization, or FAO, around half of the wheat reserves and nearly 40% of the rye in Ukraine are in war-affected areas. The damage caused by the war will reduce grain reserves and limit production and cultivated acreage for years to come.
The damage to infrastructure makes it difficult to get humanitarian aid to Ukraine and to transport the resources that can still be saved.
According to the World Bank, global agricultural commodity prices rose 41% between January and May and are still rising. During the same period, the price of corn jumped 54%, and the price of wheat jumped 60%. With its current budgets, the UN World Food Programme cannot feed as many people.
Also according to the FAO, war and climate change are the main causes of global food insecurity, in Ukraine and elsewhere. It predicts that 44 countries will require food aid in 2022, particularly in West and East Africa due to conflicts in those regions, food commodity prices, and crop failures.
Faced with the expected risk of food shortages, several countries have begun halting exports in order to strategically prioritize their own people. For instance, India stopped exporting its wheat, and then Indonesia halted palm oil exports. This food protectionism could trigger a domino effect with even more tragic consequences.
Here, as elsewhere, production costs will soar, because the price of inputs has also exploded. For example, fertilizers come mostly from Russia and Belarus. Their prices had increased even before the war. Now they have doubled or tripled. What is more, this government is still imposing a 35% tax on them, even though they were ordered and paid for before the invasion of Ukraine.
The rising cost of diesel fuel must also be taken into account. When economist Sylvain Charlebois appeared before the House of Commons Standing Committee on Finance last month, the agri-food market expert said that supply chain issues are making it difficult for farmers to plan. Their inputs are not consistently available. He also reminded the committee that last summer, western Canada, the United States and Russia experienced major droughts, while Germany experienced major flooding. The result of all this was that the 2021 crops were so poor that reserves are currently low. They were counting on 2022 to replenish their reserves, but with the war, that will not be possible. The economist also added that it was not possible to increase cropland acreage in the short term. However, he did say that the spring flooding in Manitoba is not expected to have much of an impact on the harvest, as it delayed seeding by only a few weeks.
All that adds up to significantly higher food prices in the coming months, much higher than what we are seeing now. For example, Germany is expecting grocery prices to increase by an average of 50%. Food will be 50% more expensive. It should be less than that in Quebec and Canada. That is how it is likely to play out in rich countries.
People in poor countries will likely face famine, which is why international institutions are calling for greater solidarity, especially seeing as less wealthy countries were encouraged to go into debt to get through the pandemic more easily. As a result, they are now deep in debt and will not likely have the means to import enough food at high prices.
Add to that the fact that many of them are already subsidizing basic foods to make sure their citizens can feed themselves. These countries will have to import food at high prices even as they spend more of their budget on food subsidies. African countries are particularly vulnerable.
A significant portion of crops are now traded on the stock exchange. For example, a future crop can be sold in advance and traded several times on the stock exchange. This practice can drive up the price of commodities for speculative purposes. It is a bit like oil. People take advantage of the context to drive prices up and line their pockets. This situation is a reminder of the limits of using markets.
The situation is such that food will be a major problem this year and for years to come. According to a partner with the firm McKinsey, even with an optimistic view of the crisis, things are unlikely to return to normal before 2024. The food crisis will require an exemplary demonstration of international solidarity. It also reminds us that war always has a greater impact than anticipated. Let us hope that a peaceful resolution will be negotiated to end this war, primarily for the sake of the Ukrainian people, but also to limit the effects of a food crisis that has already begun.
We have an obligation to show solidarity to combat hunger on a global scale. We also need to do more to support our farmers. Finally, we must do more to ensure global peace and do our part to limit climate change. I hope this government is taking notes right now.
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- Jun/16/22 7:31:28 p.m.
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Mr. Chair, I appreciate that we are able to have this discussion tonight on the importance of global food security.
Certainly, one of the things that my constituents often bring to my attention is the close connection between food security and energy security. This is no more evident than in Ukraine. Those issues are closely connected, even just the industrial connection between modern agriculture and the energy industry, natural gas, for example, being required for the production of nitrogen-based fertilizer.
I would value hearing the thoughts of my colleague from the Bloc on how we can ensure that Canada plays a productive role in both solving the food insecurity challenges that exist, but also being a primary player in global energy security.
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- Jun/16/22 7:32:32 p.m.
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Mr. Chair, the United Nations Food and Agriculture Organization, or the FAO, said that the current global food shortage and the current risk of famine have two root causes: the war in Ukraine and climate change.
We have a collective duty, here in the House as well, to go green as quickly as possible in order to limit upheaval and ensure greater stability over the seasons so that there are fewer crop failures due to drought, as we saw last summer. This is urgent and it is very important. Clearly, this must all take place in an orderly manner with a predictable transition. That is what the government and we, the legislators, must propose and implement.
With respect to the war in Ukraine, yes, there are energy concerns. We are seeing the repercussions in Europe. In the very near term, Canada obviously cannot magically create pipelines or infrastructure to export its natural gas or oil. That would take 10 years.
The Bloc Québécois believes that the next 10 years would be better spent going green. The planet needs it, and we have an increasing number of examples at present.
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- Jun/16/22 7:36:25 p.m.
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Mr. Chair, I thank my colleague for his speech and his concern for the agricultural sector. What does he think would be the best way to support our Canadian agriculture in order to sustain ourselves, but also to go a bit further in our international assistance?
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- Jun/16/22 7:36:53 p.m.
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Mr. Chair, I thank my colleague from Beauce and I commend him for all his work and the positive contribution he makes to the House.
There are many things that can be done. When I tour my riding and I meet with our farmers, I am always very touched. In the agricultural sector, the women and men who put food on our tables are not, in my opinion, given enough credit by the public, by the entire population and by elected members. The first thing to do would be to recognize the essential role they play for all of us here.
If we compare the support the government provides to agriculture, Canada does half as much as the United States and three to four times less than Europe, according to the numbers from my critic colleague. If Canada is able to produce a lot with less support, then that is great, but let us never forget that agriculture is a strategic industry since it meets a basic need: feeding the population.
The sector needs recognition, which could take many forms, including real crop insurance.
The labour shortage is another issue. I was on the phone again today with the Minister of Immigration, Refugees and Citizenship's team, talking about temporary foreign workers. Then there is the tax on Russian fertilizer that was purchased and paid for before the war started in Ukraine. We have a lot to do.
I believe that society as a whole needs to be more involved to better support our farmers, who experience a lot of stress because they are isolated and drowning in work. There is nothing more important to society than the work they do, the critical work of feeding people.
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- Jun/16/22 7:39:38 p.m.
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Mr. Chair, that is a very good question.
In the 1980s, 1990s and 2000s, international institutions, such as the International Monetary Fund and the World Bank, recommended that developing countries that were struggling—the ones with subsistence agriculture that were struggling to feed their people—specialize in growing cotton, for example. They were telling these countries that they would be able to export it, generate revenue and then import their food.
At the same time, the rich countries that properly support their agricultural industries set up aid programs for these countries. When the harvest was good, the rich countries helped them by giving them their surplus crops or selling those crops to them at a low cost.
All of this led to the collapse of local agriculture in developing countries, because they were obviously not able to compete with the rich countries' donations in good years. International institutions encouraged countries to move away from this sector and specialize in export sectors. As a result, these countries have had their subsistence agriculture dismantled.
When the harvest was bad, they did not receive any aid from rich countries. The International Monetary Fund and the World Bank told everyone to grow cotton, so many countries grew cotton. Large corporations were the ones leading it, and the price of cotton collapsed. The do-gooders in rich countries and international institutions thought they were fighting poverty, but they actually made it worse. Who are we to tell those countries what to do?
They knew how to go about it. In order to receive international aid, they had to listen to the rich countries, and this made the situation worse. We have to think about that.
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- Jun/16/22 8:01:44 p.m.
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Mr. Chair, I will be sharing my time with the Minister of Northern Affairs this evening.
I am very pleased that colleagues in the House have called this take-note debate forward this evening, because the question of global food security as a result of the war in Ukraine is the most important question right now that we all collectively face.
I am very proud to be the chair of the House of Commons Standing Committee on Agriculture and Agri-Food. We have started a global food security study because of what we are seeing around the world and because we have seen the explicit targeting, by the Russian Federation, of Ukrainian assets that feed not only Ukrainians but the whole world.
It is important to start by giving some context to how important Ukraine is in the global food conversation. It represents 47% of sunflower oil exports to the global market, between 10% to 12% of wheat exports to the global market, 18% of barley and a really high percentage of corn as well. Suffice it to say that not only is Ukraine the breadbasket of eastern Europe, but it is extremely important in the global food sense.
Another thing that is extremely important is that 50% of the World Food Programme's contributions toward vulnerable states come from Ukraine. As we start to stare down what is truly becoming a global food crisis because of the illegal invasion, because of the war, those countries are the most susceptible right now to being impacted. I commend all members of the House for bringing forward this discussion. It is important and extremely timely.
I want to give some other reflections, although this is a very short period of just five minutes for opening remarks on the take-note debate.
The committee had the chance to hear from Minister Solsky, essentially the minister of agriculture in Ukraine, about the fact that right now they are trying to plant on 80% of the territory that is not yet occupied by the Russian Federation. We heard from member of Parliament Yulia Klymenko that 13% of the arable land in question is being mined right now by the Russian Federation. As we can appreciate, the front line of this combat is fluctuating in eastern and southern Ukraine, and the Russian Federation has been planting mines. That is not going to be solved overnight. We heard from Ms. Klymenko herself that farmers have perished simply trying to harvest their crops and plant on their fields.
I had a conversation yesterday with the ambassador of Ukraine to Canada. She showed me a picture of the artillery shells in the fields in which the Ukrainians harvest not only for their own people, but indeed for the world. It needs to go on record explicitly that part of the Russian Federation's plan is to create destabilization around the world regarding food security and energy prices. We have to understand that some countries, particularly in the Horn of Africa and Southeast Asia, are reliant on the Russian and Ukrainian importation of food products. Those are the same countries that could fall and then create regional geopolitical challenges, with governments being overthrown, and this could be ripe for terrorism and extremism. That is the testimony we have heard.
I want to talk about what Canada can do in this, because that is the conversation we are having. We know that there is a global challenge. We know that countries are particularly vulnerable. Even though Canada is very food secure generally, we are seeing a huge rise in prices at the supermarket because of some of the import costs as a result of the war. Canada has played and will continue to play an important role in this domain.
Some 22 million tonnes of grain product is sitting right now in silos in Ukraine, but it is not able to be moved because of the blockade in the Black Sea. The challenge in 2022, of course, is that as the harvest comes off the field, what do they do with that grain? It is important that we provide temporary storage. I know the Ukrainian government is looking to Canada to work to try to provide storage on the western border with Poland. That is extremely important.
We also need to make sure that farmers in Ukraine have the capacity to continue their work. For those who are not in occupied territories, we have to be doing everything we can to help. There is a conversation around what type of equipment we can provide for demining some of the agriculture fields. What technical expertise can Canada offer? I think that is an important conversation.
Of course, there is the trade corridor. Conversations are happening right now with the United Nations, Turkey and Russia. What can we do to provide a NATO solution as well to create those corridors?
To finish up, there is also a role we can play in Canadian production over the next couple of years, because this is not just a 2022 issue. We need to help produce more so we can help provide for the global market.
I wish I had more time, but I look forward to taking questions from my hon. colleagues.
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- Jun/16/22 8:07:47 p.m.
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Mr. Chair, I would like to thank the member for Chatham-Kent—Leamington for his work on the agriculture committee. We have a great group that has really kept a strong focus on the needs of Canadian farmers and indeed on the conversation we are having today regarding farmers around the world.
He is absolutely right that it is not only a production challenge. However, the reality is that there is a certain scarcity right now because of how important Ukraine is, and this is driving up food prices around the world. We are seeing that in Canada. We have more of a propensity to pay, as one of the richest countries in the world, but those vulnerable countries are going to really struggle.
We have heard this from international humanitarian groups that are seeking additional funding so they can provide money. That is important, but we also need to make sure there is adequate production and availability of product so that we are able to contribute to the countries that are most food insecure.
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- Jun/16/22 8:13:18 p.m.
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Mr. Chair, it is a pleasure to stand in this chamber.
It is always an honour to rise on behalf of my constituents in Saint Boniface—Saint Vital.
With one of the world's leading grain producers in crisis, the world is looking to Canada to step up. Our world-class agriculture and agri-food industry is a major driver of food security in over 200 countries around the world. Last year, despite the challenges of the pandemic, our agri-food exports topped $82 billion to 204 countries and territories.
Farmers need tools and support to keep their businesses strong so they can feed Canada and they can feed the world. We have committed to farmers getting them there. Right now farmers are facing shortages and higher costs for their inputs, particularly fertilizer and fuel, due to the disruption of supply chains caused by the conflict in Ukraine. Fertilizer is absolutely vital to Canadian farmers to grow their crops and to feed the world. We are working with governments, provinces and industry partners to ensure that farmers have access to fertilizer for Canada to do its part during this time of global food insecurity.
As well as a leading food producer, Canada is also the world's single-largest producer and exporter of potash fertilizer. We are putting money towards making the largest potash-producing mine in the world one of the greenest. On Monday, my colleagues, the Minister of Innovation, Science and Industry, as well as the Minister of Agriculture and Agri-Food announced $100 million in federal support to ensure a new potash mine in Jansen, Saskatchewan, is sustainable. Our support for this innovative project is a long-term investment for global food security and environmental sustainability, and it will ensure Canada's position as a leading exporter of potash.
During the pandemic, we introduced a number of measures to ensure the supply chain worked as effectively as possible, including support for farmers and food processors to invest in safety protocols to keep their farms and plants running. We are also working to strengthen our trade corridors so our farmers can get their world-class products to their global customers on time.
To maximize our trade opportunities, we have worked hard to diversify our trade through agreements with key trading partners, including the European Union, North America and the countries of the trans-Pacific.
However, ensuring global food security starts right here at home. Everyone deserves access to healthy, affordable and perishable food options. During the pandemic, our government worked with partners to deliver important supports to food banks, community food programs and food baskets in indigenous and northern communities, redirecting supplies of food to remote communities to ensure no food went to waste, as well as investments in food infrastructure.
At the start of the pandemic, our government acted quickly, injecting $25 million into nutrition north Canada. Not only did this make food more affordable in the north, but additional items were added to the subsidy list. Our government also introduced the harvesters support grant, which increases access to country foods by providing funding to support traditional hunting in the north, harvesting and food sharing in 108 isolated northern communities. It recognizes the importance of traditions, as well as hunting, harvesting and food sharing, to the health and well-being of indigenous people and communities.
No single department, organization or initiative has the capacity to address the issue of food security on its own, as the root cause of food insecurity is poverty.
Our government is working directly with partners to address food security in the north and Arctic through a whole-of-government approach that includes working with provinces, territories and indigenous leadership and communities. The best way to strengthen global food security is to support the hard-working individuals producing the world's food and to work with local communities in partnership to address needs here at home and abroad. That is exactly what we are doing.
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- Jun/16/22 8:19:00 p.m.
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Mr. Chair, I want to say first of all that it is incredibly important that we are having this debate today.
I can speak for the Minister of Agriculture and Agri-Food. Her department is actively engaged not only with provinces across the west, but with the farmers and industry partners to ensure that farmers have access to fertilizer for Canada to do its part during this very difficult period of global food and security.
With respect to the BHP Jansen mine announcement in Saskatchewan this week, this will be the largest potash mine in the world. We make absolutely no apologies for doing our part in working with industry. This will ensure potash not only for the medium term but for the long term, and will ensure that Canada will be an actual leading producer for generations to come, creating absolutely hundreds of jobs in the process.
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- Jun/16/22 8:23:05 p.m.
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Mr. Chair, I will be splitting my time with the hon. member for Regina—Lewvan.
I wish I were speaking more about Canadian food security this evening than speaking about global food insecurity.
Prior to being elected, I farmed for most of my life. I have spent a lot of time in agricultural organizations and I also worked with an internationally focused NGO. It has been mentioned here tonight, the Canadian Foodgrains Bank, which deals with hunger, and so, with that background, I have spent a lot of time working for food and talking and thinking about it.
If I had to title my remarks today, I would title them with the axiom that we hear at the farm, “nothing cures high prices like high prices”, and its corollary, “nothing cures low prices like low prices”. Ag pundits often cite this expression when they are talking describing volatile agricultural markets, but we might ask ourselves what this has to do with global food insecurity and why should Canadians care.
Embedded in that expression actually lies one of the solutions to this crisis that we are facing, albeit it is a bit more of a longer-term solution, but respecting and understanding market dynamics is something we all need to collectively do. This works if governments and we collectively respect how markets work. High prices of anything, food and any product, encourage more production and increase supply. Low prices encourage demand and eventually high prices. I will come back to this in a moment but with the corollary that governments understand this dynamic.
Let me speak for a second to why Canadians should care. Obviously, we are all experiencing increasing grocery prices and grocery food. Canada is a rich country. On average, we spend about 10% of our disposable income on the cost of food, which is much lower than in many parts of the world. However, the vulnerable in our own society feel the brunt more than many of us.
We know that many problems do not respect international borders. We are dealing with greenhouse gases and climate. That does not respect the border. As we have learned, travel mandates and things like that have not slowed the spread of COVID-19. So too the effects of global hunger in other parts of the world will affect us.
I am reminded that World War II was not declared in 1939 when Hitler crossed boundaries into Poland and Czechoslovakia. World War II came from a conflation of various regional conflicts. Whenever in any part of the world a population's average caloric daily intake falls below 1,800 calories, there is civil unrest, food riots, hunger, all sorts of other problems. Let us think back to the Arab Spring.
It is important to put a few stats on the record. Global food hunger was actually decreasing through 2014. It has been mentioned that conflict around the world has actually been driving those numbers up. It was down to under 600 million people. The latest figures put it at over 800 million, with 50 million people actually facing acute starvation. There are two issues. As I mentioned in a question earlier, the price and availability of food require both short-term and longer-term responses.
To address food instability, food needs to be available. My former employer worked in this space. Certainly, in a short-term response, we do need to supply cash. The Canada Foodgrains Bank led Canada to delinking our food aid back in 2008, which is a good thing, but what we need to do far more is to drive the cost of food down as well.
For that, our Canadian agriculture needs all of the tools at its disposal, certainly fertilizer and access to fertilizer. Restrictions on the use needs to be balanced with our environmental responsibility, but we cannot be putting policies in place today that impact Canadians' ability to produce food.
The carbon tax has been talked about as well. As I said, high prices cure high prices. More supply is attracted by high prices. For the world's poor, we absolutely need to put more food onto the market, which will lower the cost, which is the second possibility.
Let us put our collective efforts toward those aims.
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- Jun/16/22 8:28:14 p.m.
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Mr. Chair, as my hon. colleague from Chatham-Kent—Leamington mentioned, he has ties to Ukraine. We heard him contribute in a very meaningful way on the Standing Committee on Agriculture and Agri-Food.
I want to ask him a couple of things. He highlighted very precisely what the challenge is in vulnerable countries and the geopolitical dynamic that could come from that, and I applaud that because it is spot on. We heard in Kharkiv, which is where the plant-breeding research station is in Ukraine, was targeted directly by the Russian Federation. We heard from the Food and Agriculture Organization of the United Nations that it is going to try to salvage some of the varieties that are there.
I am of the view Agriculture and Agri-Food Canada can work constructively to help rebuild some of the varieties where there might be some common overlap. Does he believe that would be a constructive solution the government can work on, and will he constructively raise that to help push the government to work in that domain?
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