- Member of Parliament
- Member of Parliament
- Conservative
- Chatham-Kent—Leamington
- Ontario
- Voting Attendance: 65%
- Expenses Last Quarter: $153,134.70
- Government Page
Madam Speaker, it is always a pleasure to bring the voices of Chatham-Kent—Leamington, and today the voice, hopefully, of many Canadians, to this chamber. I want to begin by thanking Senator Black for bringing forward this bill to acknowledge a food day in Canada. He comes from the other place, and I want to acknowledge my friend and colleague, the member for Perth—Wellington, for shepherding it through this place.
I also want to thank him for some delicious craft beer that resides in my fridge, as he recognized that the Leamington Flyers prevailed over his St. Marys Lincolns in the western conference finals of the junior B hockey league. I also want to acknowledge that last night the Stratford Warriors, also from his riding, tied the series for the Sutherland Cup at 3-3; he and I will continue discussions on that matter later.
However, today is about food and the important place that food has in our lives, both for our physical needs and also for our social needs. It has such a major place as we celebrate with families, as we celebrate occasions and as we celebrate social events. Today, I want to spend most of my time talking about the physical aspect of how food nourishes us.
As previous members have acknowledged, many of us have access to local food, and that is great here in Canada, but the reality is that most of the food that we consume as Canadians comes to us through one of two complex food value chains: It is either food that we purchase at the grocery store, through the retail value chain, or it is through the food service aspect. After a number of us have spoken here to this bill, we will go to the lobbies and enjoy some food prepared here through the chamber. As we celebrate weddings and other social events, we have the food service industry serving us there through our hospitality venues, as well as through our hospitals. That is the other complex food value chain that often supplies us with food.
I am a farmer, and on our farm we have produced many vegetable crops and grain crops. However, I have spent much of my life also involved with the transfer of raw products from our farm to the next step, that second step, as it goes from farmers to food manufacturers or food processors, and then on to retailers, distribution centres or food service companies.
Several generations ago, most people understood the food value chain. What I really like about this bill is that it focuses on our food value chain and it gives us an opportunity to talk about it, so that we all collectively understand where our food comes from. In this chamber, we hear at times debate around supply management, where we talk about open markets or contracts or the spot market or informal alliances. In the general public, I do not think it is that well understood. Why does agriculture not just get together and have one simple way of transferring food or the value of raw product to the next step? Obviously, it is very simple to understand at the local markets or the roadside markets. In my home riding of Chatham-Kent—Leamington, we are blessed with many of them throughout the summer, and with our greenhouse industry, we often have access through many months of the year. However, as I said earlier, most of the food comes to us through a complex web of interrelationships, and that is where I have spent some time off the farm. I will speak a bit to that.
I am a proud Conservative. I sit on this side of the chamber, for now. However, I have also spent 20 years or more collectively bargaining. I am very proud of that, representing producers and their relationships up the value chain. How can I do that? I very much firmly believe in the market mechanism as the most efficient mechanism for transferring value of goods and services, but markets work only when there is a balance of power in the marketplace. Different mechanisms, different structures and at times different regulations are required to provide that balance of power. What I have noticed over my time in the food industry is that there are four factors that actually determine the amount of structure and the style of relationship between producers, farmers and the next step up, be it food manufacturers or processors.
Let us begin with them. The first one is the perishability of the product we are talking about. If we were to talk about the price of a glass of milk, or a tomato, which I have produced, or a bushel of grain, and if we were to sit down across the desk to determine the value and not agree, we might want to come back in two or three weeks' time and talk about the value of those products again. That glass of milk is going to have some problems two weeks later, if it is not properly cared for. The tomato might hang in there and have some value, but it would certainly be reduced. For the bushel of grain, be it wheat, corn, soybeans or canola, if stored properly, we can talk about it in six months, and it would be fine. Therefore, perishability determines the dynamic or the power we have to talk about it. Even with different products, we can talk about beef versus dairy. Both are products that come from bovine species, but they have totally different marketing aspects when it comes to perishability.
A second factor is the complexity of the biology or the complexity of the technology. We can take a dairy herd as an example. A dairy herd takes years to build up to a productive asset, as does an orchard or a vineyard. They are not things one plants in spring and harvests that fall, immediately; it takes time. Therefore, if there are errors, mistakes or marketing challenges, that can really mess with that operation for years.
My farm, Lycoland Farms, is an annual crop producer, so we get a new chance every spring, and we are at the point where we do a fair bit of double cropping, so often we are able to plant two crops a year. That dynamic, the complexity of the biology, determines how much structure and regulation might be required in transferring value.
A third factor is the balance of buyers and sellers, and we have talked a lot about that in this House recently. How many buyers are there for how many sellers? Is it a monopoly or an oligopoly buying, or are there a number of options I can sell to as a producer?
I think of different instances here. The grain markets are becoming more concentrated, but the reality is that I have several elevators I could transfer my corn or soybeans to, and I am not bound to take it to one if we disagree on the local basis levels. I look at our greenhouse industry, a very complex and highly technical industry, and there is a large absence of marketing structures. As they specialize more, they are starting to move toward contracts, but the reality is that in that industry, several years ago, there were over 60 marketing agencies willing to transfer the value of greenhouse product to the retailers, to the market. That has shrunk down somewhat, but there are a number of options. That balance of buyers and sellers, monopolies and oligopolies, plays into how much structure a market needs to function effectively.
Last, there is the international scene. How is agriculture treated in other countries? Canada is a trading nation, so we cannot eat all the wheat we produce or all the pork we produce, and our orange juice production and our coffee production suck. We need to trade, and how other countries treat agriculture is also extremely important in our relationship.
Those four factors, over time, play into how an industry transfers value, and this is largely between the primary producers one step up in the value chain. These factors are not static. Innovation, changes in technology and changes in how other countries interfere with or support their agriculture become very important.
I am reminded of 2008, when the grain markets rose significantly. That actually led to the Arab Spring. When the average consumption of a country's population drops below 1,800 calories per citizen, often civil unrest follows, so countries around the world are interested in their agriculture and their food supply. Food sovereignty is important to every nation in the world, and that plays out in many different ways.
In the few seconds I have left, I just want to touch on two points. First of all, there is a myth that it is field-to-fork that brings the food to our plate. I, as a primary farmer, have so many suppliers. I have relationships with input suppliers, seed suppliers and farm machinery suppliers, so our food value chain extends before the farmers. I do not want to leave anyone with the wrong impression.
In conclusion, the legacy of Anita Stewart from Perth—Wellington is to be honoured, and that is a point of pride for our agriculture communities and for our whole food value system. I am honoured to address that today.
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Madam Speaker, it is always a pleasure to rise to bring the voices from Chatham-Kent—Leamington to the chamber.
When I started farming professionally some three and a half decades ago, I am not sure if I would have personally supported a measure like the one we are debating today. I would have thought it unnecessary.
I live on a home farm, and I am a third-generation farmer. When my father began farming, everyone was either from the farm, had an uncle on the farm or had a personal farm connection. Today, it is much different.
We often hear of the 80-20 scenario, where 80% of a product or service is delivered by just 20% of a population, those who are providing that service. With food production, farming in particular, if we go back and look at census data, 2% of our Canadian population are farmers. Under the census, that means they produce more than 7,000 dollars' worth of farmed goods per year. In reality, half of 1% of our farmers produce 85% of the production grown on our farms.
If we look in the chamber, there are 338 members. With table officers and others, there are around 400 people on a full day. The means two people would be the represented population.
I do celebrate this day and the opportunity to speak because it provides us an opportunity to educate people and talk about local food. More importantly, we can talk about the whole food chain.
I want to credit Senator Black for his leadership in the Senate and my colleague from Perth—Wellington for shepherding it through this chamber. I also want to credit Anita Stewart from Wellington County who pioneered the first Food Day.
The member for Perth—Wellington said in his speech about a month ago, “Since that first Food Day in 2003, it has indeed grown into a wonderful celebration of the food our farmers grow and the food that all Canadians enjoy every single day, whether at their kitchen tables or at restaurant tables across the country.” I add my voice to that celebration and that encouragement of local production.
I live in a part of the world where we have access to fresh fruits and vegetables produced locally almost 10 months, or even more than 10 months, a year, depending on the vegetable, because of our innovative greenhouse sector.
Our roadside markets are plentiful, with direct lines from the producer to the consumer, which is great. However, for much of Canada, roadside markets are not accessible all year round, especially in the winter. We all know winter is coming.
Canada is a trading nation. We produce so many good foods, but our coffee production and our orange juice production is not top-notch. We do not have access to it and, as Canadians, we cannot eat all the wheat, canola or pork we produce. We are a trading nation. We rely on food chain systems, both here in Canada, for our own domestic production, be it at our kitchen tables or at restaurants, and with our international trade.
I wanted to say that to lead into three points today. The first is that this day offers us an opportunity to enhance food literacy to our general population. We rely on this agri-food value chain to feed us year-round, and because, as I shared earlier, such a small percentage of our population has a true connection to the farm, food literacy has dropped in Canada.
This gives us an opportunity to describe how complex our food system is. Given that it is so complex, and given the times we are in, food is becoming more expensive. September's food inflation rate, year over year, increased 11.4%, and that is growing. Here in Canada compared to much of the world, we are still lucky as Canadians.
In 2020, 11% of our disposable income was spent on food. In 2021, in calculations by the Canadian Federation of Agriculture, it was 10.7%. They declare that day one day earlier, on February 8, 2022, when the average Canadian has spent their percentage of disposable income to purchase all the food they needed for the year. I suspect that will be much later in 2023. That is unfortunate for many low-income Canadians.
Why are food costs rising? I can share that the food inflation rate has certainly outstripped general inflation, and yes, the commodity markets are strong. A lot of crops that are negotiated in price relative to the strong commodity markets have also risen at the farm gate. The costs to our farmers have outstripped the prices they have received at the field.
Fertilizer tariffs and shipping costs have sky rocketed. There is an exemption for on-farm gas and diesel, but there is the carbon tax and everything else. There is carbon tax when it is shipped to the farm and on the barns being heated, and the grain is still being dried this year.
I would implore this House to pass Bill C-234. I had the opportunity to speak to it earlier.
Make no mistake. Farmers are conservationists. The fact they need an exemption so they can compete with the rest of the world and reduce the cost of producing food is not a reflection of their ability as conservationists. I could spend a whole 10 minutes just talking about the advances that our farm community has made on that.
I want to touch on another cost driver, labour, which is affecting every sector of our economy. I hear that from our farm community. I want to celebrate the fact that Canada has a temporary foreign worker program. It is critical to so much of our farming sector and is also of great benefit to the host nations from where many of these valuable workers have come. It is one of our best foreign aid mechanisms, and many parts of the world are jealous of this opportunity. Again, I could spend 10 minutes just on that.
Another cost driver is obviously the borrowing costs to finance assets and the growing cost of crops, which is another thing our farmers are facing.
Farmers are often called the first step in our food value chain. This leads me to the third and final point that I wish to make today.
We often hear our food system being described as field to fork, but that is a bit of a misnomer. Farmers are not the first step in our food chain. I note that the bill's title refers to establishing a national food day, not a national farming day. I think it is rightfully titled. As farmers, we have so many suppliers that supply us with our crop inputs and everything from steel to bearings to financing. We are not the first step. I want to acknowledge that. In this food value chain we have in Canada, and actually much of the world, food manufacturers and processors are next, and then it is on to food distribution, whether it be the retail or the food service mechanisms.
We hear two statements being bandied about, “record retailer profits” and “retailer margins are not changing much in percentage terms”, throughout the pandemic. Both those things have been in the news recently. Both of these statements can be true at the same time. Because the pandemic has shifted, somehow much of the food supply has come to our bodies more through home cooking and the grocery retail chains. The volumes being sold through retail have increased and food service has diminished. With increased volumes, even though the margins of our retailers have remained roughly steady within a certain range, between 2% and 4%, the profits have actually increased. Today we are in a state in Canada where we have an opportunity to address some of these mechanisms in our food value chain if we get it right.
What I am talking about is a grocery code of conduct. I had two excellent meetings last week with Restaurants Canada and Food and Beverage Canada. They mentioned labour availability as being their number one issue and talked about the temporary foreign worker program, but that is not where I want to go. Restaurants are telling me the very same things our farmers are experiencing. We have all gone out and noticed that the cost of restaurant meals has also climbed, but their margins are also shrinking because of the cost structures they are experiencing.
A grocery code of conduct actually gives us the opportunity to address some of the behaviours in the food chain, the fines, levies, listing fees, and the like, all those mechanisms that the value of our food production is being transferred from the food processors and manufacturers to the retailers. Manufacturers are spending on administrative costs and keeping an eye on that. Food retailers are spending on administrative costs in that mechanism.
The United Kingdom, Ireland and Australia have all gone down the road of a grocery code of conduct and have actually experienced greater profits throughout the transmission chain of food, the value chain. Most importantly, food costs for consumers have relatively dropped because costs have been stripped out of that system. That is the big point I want to make. Canada has an opportunity to get that right. I want to mention the 10,000 independent grocers across this country that are very critical to our rural fabric.
I know my time is quickly running out. I want to thank the sponsor of this bill.
I would just note that we have inflationary pressures driving up costs. We have an opportunity through a grocer code of conduct to address these inflationary costs.
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