40th PARLIAMENT, 2nd SESSION
EDITED HANSARD • NUMBER 063
CONTENTS
Thursday, May 28, 2009
Agriculture and Agri-Food

Hon. Wayne Easter (Malpeque, Lib.):

Mr. Speaker, on May 6th, my question to the Minister of Agriculture was quite direct and clear: will the minister commit today to cash payments to Canadian hog producers so they can have some financial security? Sadly, the minister's answer was the usual mishmash of misinformation and hyperbole and of course no commitment to the ad hoc payments.

Why would Canada's hog producers, who have long opposed ad hoc payments due to their concern over trade issues, request an immediate payment of $30 per hog based on 2008 numbers? The answer is quite simple: it is a matter of economic survival. This industry is on its knees. We are losing the hog industry in this country. This is about economic survival, nothing more, nothing less.

Hog producers are ending up in financial ruin. They have spent their life doing this work. Generations of hog producers have done this work. Businesses are destroyed. Lives are ruined. Their economic future is in tatters because of events beyond their control, and the Conservative government has failed to address this economic reality.

Let us take a look at the numbers. In 2009, 8,310 farms reported having hogs. That is down nearly 30% from 2006. In Canada, 70,000 jobs are a direct result of hog production. Pork exports alone generate 42,000 jobs, $7.7 billion in economic activity, and $2.1 billion in wages and salaries. The whole industry is on the line.

In my province of Prince Edward Island, 80% of the producers have left, in 18 short months. In the province of Manitoba, exports of weaner pigs to the United States have come to a halt because of a labelling law in the United States that is nothing less than a non-tariff barrier.

Even the American Meat Institute, in testimony last night before the subcommittee on food safety, confirmed it shares our opinion that the United States country of origin labelling is a trade restriction. It agrees with a challenge to the WTO. The government, I will admit, is moving on that challenge. However, a challenge to the WTO, even if it gets off the ground, will take years. By that time our pork industry and its tremendous economic potential will have been cut in half and the dreams of many will be destroyed.

If the government wants to stand up against the illegal actions taken by the United States, it would immediately announce funding requested by producers. It is a justified payment based on the trade action itself.

Such money, reluctantly requested by Canada's pork industries, would assist in their survival, but it would also send a message to the United States that Canada is not going to blatantly stand by while it performs illegal acts. Canadians are behind our pork industry. They are willing to put money into it to see that the industry survives.

I ask the minister again whether he will commit to that money today.

Mr. Ed Komarnicki (Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour, CPC):

Mr. Speaker, I would like to restate some facts to deal with the issues the member has raised.

There is no question the Government of Canada is committed to supporting the Canadian hog and pork industry as it continues to face challenges with respect to its competitiveness.

Industry stakeholders understand that competitiveness is key to the survival of the Canadian hog and pork industry. In response, the industry, provinces and the Government of Canada are taking the necessary steps to the adapt to the new market realities at home and abroad. We are finding new marketing opportunities around the world to help Canadian farmers weather the storm and to strengthen export markets.

The Minister of Agriculture continues to promote our safe, top-quality pork to the many countries around the world. At the Canada-United States border, our Conservative government continues to defend the interests of the hog sector by launching a WTO consultation regarding the country of origin labelling. That was commenced in April.

Let me address the one point raised by the member opposite regarding a per head payment.

Let me be clear. Per head payments run a high risk of trade retaliation, not only against the hog industry, but against all other livestock and agricultural sectors. Is that what the member wants? Additionally it would be very counterproductive to our current COOL challenge.

Instead of such a counterproductive way forward, let me tell members what we are doing for hog farmers. At home, we are offering more support than ever for hog farmers. Last spring, we offered emergency cash advances to livestock producers. Now we are giving producers an additional 12 to 18 months to repay their advances. The first $100,000 of each producer's advance will also continue to be interest-free. It is estimated that only 44% of all hog producers in Canada have participated in the advance payment program for the 2008-09 production year. More than $450 million in advances are eligible for the stay of default.

Given the recent challenges in the hog industry, significant payments are being made under the business risk management programs, covering between 60% to 70% of the losses of producers.

These are the facts.

In 2007, $235 million went to hog producers through agri-invest, $20.8 million, kickstart, $60 million, and agristability, $254 million. Approximately 84% of hog farmers participated in agristability in 2007. Those are significant figures. In 2008, an estimated $213 million went to hog producers through agri-invest, $18 million, and agristability, $195.4 million. In 2009, an estimated $182 million has gone to hog producers through agri-invest, $19.6 million, and agristability, $162.9 million.

Eligible producers who submitted 2007 agri-invest applications have access to their benefits and they can now apply for the 2008 agri-invest program.

Further, the Government of Canada is working closely with the National Pork Value Chain Roundtable to develop and implement a strategy that addresses the competitiveness issues facing the industry and to succeed in the future. In support of this strategy, the Government of Canada is responding to industry priorities, including market access, market development, innovation and animal health.

To give Canadian livestock producers even greater access to global markets, the minister has concluded several successful trade missions to Asia, South America and the Middle East. These market access initiatives are reinforced with significant market development funding directed to the hog and pork industry and have been further supported through the introduction of the Canada brand promise for export trade.

I see my time is up.

Hon. Wayne Easter:

Mr. Speaker, on what planet does the government live? The fact is farmers are going out. He said that he is out of time here tonight. Pork producers are out of time and the government sits on its haunches and talks about trade challenges. Trade challenges will not solve the problems of producers in our country.

He talks about agristability. The fact is hardly any hog producers this year will qualify for that.

If the government would put money directly out there, that would add to the trade challenge. It would tell the Americans that it is high time, that this country will stand up against this illegal trade action and non-tariff barriers that they put in place, and then we wait three years to get a ruling at WTO and elsewhere.

These people need cash. The Americans will win by default if the government does not step up to the plate and meet the $30 per hog 2008 numbers that the Canada Pork Council has requested.

I call upon the government to just do it, do it now and save this industry.

Mr. Ed Komarnicki:

Mr. Speaker, the facts are, according to a Statistics Canada report, released on May 25, farm cash receipts for hog producers have increased to over 27% in the first quarter of 2009 from the first quarter 2008. Lower feed, fuel and interest costs are improving the bottom line for hog producers.

The Government of Canada is working with the sector to address issues of increased global competition. Through the Canadian Agriculture and Food International Program, the Government of Canada has contributed $2 million annually to Canada Pork International to support the implementation of the sector's export market development plan.

Markets are being opened up, and that is where we should be proceeding. Dollars are being spent to ensure that a future is there for the hog producers. However, having a trade action is not something we want to encounter in a negative way.

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