44th Parl. 1st Sess.
November 29, 2023 02:00PM
- Nov/29/23 4:46:45 p.m.
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Madam Speaker, actually, it is about time that the House of Commons finally looks at an agriculture report. We do not get the amount of airtime that many other committees do. This is a really important industry in Canada.
I have been a proud member of the Standing Committee on Agriculture for almost six years now. We do some fantastic work. Most of it by far is by consensus. In this particular report, if members look at recommendations 2, 3 and 4, they specifically deal with the main thrust of this report, which is processing capacity.
If my colleague will remember, my main theme of questioning was around how we build resiliency in our local communities, especially when we have the unexpected, such as COVID-19 and whatever disasters might hit us in the future.
Could my hon. colleague share how we build that, because what we saw during the pandemic was that the supply chains are extremely vulnerable to systemic shocks?
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- Nov/29/23 4:59:03 p.m.
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Madam Speaker, my colleague is another member of the agriculture committee. It is nice to see us bringing an agriculture report to the House for deliberation.
In my time working with my colleague, she has been very outspoken on the grocery code of conduct. We have it here in the report as part of recommendation 16, and we did hear recently that Loblaw in particular has some problems with the code.
I am wondering if she could give her thoughts to the House on why such a code is important and why it should be mandatory, considering the power imbalance that exists between grocery chains and the hard-working producers and processors, who have been dinged with all of these hidden fees. Could she explain to other members of the House, who may not be familiar with this issue, why it is important and why it is so central to really strengthening Canada's processing capacity?
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- Nov/29/23 5:58:26 p.m.
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Madam Speaker, I enjoy serving on the agriculture committee with my colleague.
I want to touch on recommendation 14 regarding skills development and the encouragement for training and re-skilling programs. During testimony we heard from UFCW, which represents many workers in our food and processing sectors. In particular, it recommended that the government bring together industry players, representatives of workers and the government, a tripartite representation. I do not think there is enough awareness out there of how technically skilled agricultural jobs have become. A lot of students have a stereotypical and very old-fashioned idea of agriculture, when in fact it is a very technologically specific area.
What does my colleague think about the government having to do more to promote awareness of not only the skills required but also the very well- and high-paying jobs that are available and the opportunities that exist in this sector so that we do not always have to rely on importing workers to fill the huge labour gap that exists?
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- Nov/29/23 6:05:31 p.m.
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Madam Speaker, it is a very real pleasure for me, as the NDP agriculture critic and a proud member of the Standing Committee on Agriculture and Agri-Food for almost six years, to be able to rise on this debate.
Let us face it: The House of Commons does not get to review many agriculture committee reports. I am pleased to have this opportunity to participate in a concurrence debate on a report that is quite relevant and important. I am glad we are having this debate today.
The agriculture committee is a unique institution within the House of Commons. I have sat on a number of committees as a substitute before. One thing I have always appreciated about the agriculture committee is that we tend to operate very much on a consensus basis. I think it comes from an understanding that no matter what political party a member sitting around that table is from, we realize that we all represent farmers; that is across the political spectrum.
We come to the table with different viewpoints, and we certainly stick by our principles. However, the realization that we all represent farmers and want our agricultural industry to do well lends itself to a very respectful tone at the committee. It is rare to see reports coming out of our committee with a dissenting opinion or even a supplementary opinion attached. That is one thing I truly do appreciate.
I am very proud to represent a rural riding on Vancouver Island, which has its own long and storied history with agriculture. We have a number of families in the Cowichan Valley that have been farming for five generations. It runs in our blood there. It is certainly not to the scale that we see in the Prairie provinces, but we are very proud of our agricultural history. We are proud of the fact that we are Canada's only Mediterranean coastal climatic zone, which allows us to grow some unique fruits and vegetables that cannot be found anywhere else in Canada.
I am proud to come from that region and to speak up for the farmers in my area. When it comes to this particular report, let us get to the heart of the matter. When we are talking about processing capacity, we are essentially talking about a value-added industry in agriculture in Canada. We are all aware that, whether it is raising animals, getting eggs from chickens or growing vegetables or fruits, that is the primary production end of it. Farmers do quite well selling those. We all love going and picking our fresh produce and so on.
However, there is a whole other industry that is extremely strong in Canada and carries a lot of economic might, and that is our processing industry. We take those primary products of Canadian agriculture and add value to them. Canadians can go to their local supermarket and look at just the sheer abundance of processed food that we have; I am not talking about the food in the centre aisles, I am talking about anything that has had value added to it.
It is important for members to understand that, when we did this report, when we were doing the study into the subject matter, we were right in the middle of COVID-19. The worst had passed, but there was a huge trail of wreckage from that pandemic, on Canada's food industry. We were very much dealing with a lot of people who were still suffering from that crisis and from the trauma that it inflicted on so many who work in this industry.
We tabled that report in the spring of 2021. Unfortunately, in the summer, the Prime Minister decided to call what many thought was an unnecessary federal election. As a result, we never got to have a government response to that report. When we reconvened for this 44th Parliament, one of the first orders of business was to retable that report by unanimous consent so that we could actually get the government response to it. That is why it was report number one of this 44th Parliament.
COVID-19 was brutal. It changed Canadians' eating habits. We were no longer going out to restaurants, because they were closed by public health orders. We were essentially getting our food from supermarkets. The way the industry had to respond to that sudden and dramatic shift was a bit like an earthquake through the industry.
We also know that many of the workers working on farms and working in the food processing factories, the processing plants, were struck down by COVID-19. They tragically succumbed to the disease or became sick and had to be off work for several weeks. Some developed long COVID symptoms and were unable to return to work. That was a huge shock to the system. For an industry that was already suffering from labour shortages to suddenly have its very limited workforce decimated even further was very brutal, and it allowed our committee to take a hard look at the weak links in our supply chains and our ability to feed our local population.
I can remember the word I was using as a theme to guide my questioning as a part of that study was “resiliency”. We did not have a lot of resiliency built into the system. One of the things COVID helped us understand is where the weak points in the supply chains are, and we discovered there were a lot. It is my sincere hope that we can learn our lessons from this report and the many others that other parliamentary committees have done, because we know other shocks are going to come in the future. They may be climate-related or may be from another pandemic. We do not know, but it is a very unstable place we are a living in right now. If we do not learn lessons from our past, we are doomed to repeat the same mistakes.
When it comes to the main theme of processing capacity, I am very proud that in our report we focused recommendations 2, 3 and 4 on the theme of processing capacity. One of the main themes was how to encourage local processing capacity to develop. I will focus my comments on the beef industry, as this area was extremely exposed and suffered terribly from COVID-19.
As many who are familiar with agriculture know, two corporate entities run 85% of the beef processing capacity in Canada. They are JBS and Cargill. They have three main processing plants. In those plants, during the pandemic, workforces were decimated by COVID-19. In some cases, they were completely shut down. In other cases they had one shift out of three working. This caused a massive rolling backlog throughout the entire supply chain.
In the beef industry, there are cow-calf operators, who raise calves out in the fields. There is the National Cattle Feeders Association, which takes them and overwinters them to grow them to a certain weight. Then, of course, there is the processing capacity. However, when our processing plants were knocked out of commission or severely curtailed in their ability to handle a typical workload, suddenly all of our feedlots were jam-packed full because they had nowhere to send all of these cattle. Then if we go back even further, we had a lot of ranchers who could not even get the cows off their lands. Because they were so constrained in where they could get their cattle processed, it exposed some of the very real weak links. That is why we see three recommendations in this report specifically looking at ways the federal government can step up to the plate and develop local processing capacity.
We had all of our eggs in just a few baskets, and when those baskets did not operate anymore, we had no other places to put the eggs, to use a complicated agricultural metaphor. The way to address this in the future is to make sure we have processing capacity built up in our regions. Not only is it good for local economies, because they provide much-needed jobs, but it also, whenever there is going to be a future shock, allows our country to better withstand that.
That is why we see recommendations on how we develop “local processing businesses and regional small-scale abattoirs”, how we can “identify strategic funding opportunities to address regional processing capacity” and also how we can increase funding to funding envelopes like the local food infrastructure fund, which could provide these services for small communities like mine, Duncan, in the Cowichan Valley. These are solid recommendations, and I am glad our committee spent a remarkable amount of time on them.
Another area that I want to highlight in this report is the harmony that is needed between provincial jurisdiction and federal jurisdiction, especially in the context of processing capacity. If a person goes through a provincially mandated processing centre, they can sell within their province, but they cannot sell internationally or across provincial borders. To do that, they would need a federally inspected facility; essentially one that is inspected by the CFIA. However, I think that for an animal processed in British Columbia or Alberta, if British Columbians or Albertans are eating that and it is perfecting safe, it should be good for Canadians across every province. We were encouraging the government to work with the provinces to find ways where we could harmonize the requirements between provincially and federally regulated facilities.
I also want to talk about labour, particularly about skills development. As I said in one of my earlier interventions, there is an incredible disconnect: many people in Canada do not know where our food comes from, how it is grown and how it actually arrives on our dinner plate. First, we need to educate more young people in our urban centres about the hard-working men and women who are out in agriculture doing this hard work in getting the food on our plates, and the incredibly complex system of how it gets there. I also think that for people who are coming out of high school and looking at potential career paths, a lot of them might overlook agriculture, because they have an old-fashioned, stereotypical view that usually involves a red barn and a cute tractor from the 1950s when agriculture is so much more.
Twenty-first century agriculture is an incredible user of technology. We are talking about cutting-edge science in robotics, in communication with the Internet and so on. It is incredible how much innovation is going on in our agricultural sector. With that innovation and technological need, we have to fill those jobs. We need very technically specialized people to come in to operate and fix those machines and be real economic drivers for the industry.
I was glad to see representatives from UFCW come before our committee. It is one of the largest unions in Canada. It represents a lot of the workers in food-processing centres, and it really does want to see the government step up to the plate to work with employers and union organizations so that there is more awareness in Canada's public school system about some of the exciting career paths that exist in agriculture. If we could start that kind of investment now, because the need for labour is so great, I think that is one of the ways we can start heading things off at the pass later on.
The final thing I want to concentrate on when we are talking about food processing in Canada, and this may come as a surprise to some people, is recommendation 16, which is the recommendation that we have a grocery code of conduct, and I will explain to members why that is important.
Much has been made in the news this year about the incredible corporate profiteering that has been going on in certain sectors. If we look at any sector, whether it is telecom, oil and gas, the grocery sector or banking, corporate profits over the last three years have reached unprecedented levels. In my opinion, they are the key driver of inflation that we are seeing today.
This recommendation on establishing a grocery code of conduct is extremely important, because when it comes the relationship between larger grocery chains and the producers and processors who supply them, there has always been a power imbalance. We have five large grocers that control 80% of the market. When they wield that kind of market dominance, they are able to set a lot of the terms and conditions about what products get sold on their shelves. So, for a processor or producer who wants to make money, chances are they have to sell their stuff at Metro or Loblaws, and that is simply the only way they can turn a profit.
There is a power imbalance there. A lot of the time, people who were supplying the foods that people find in the grocery stores found that those processors were getting dinged with hidden fees. There were fees if they supplied too much, if they supplied too little, if they were a day late, etc. There was no rhyme or reason to the fee structure, but they were powerless to fight that. That is why we see this major call for a grocery code of conduct from producers and processors.
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