- Member of Parliament
- Member of Parliament
- Conservative
- Chatham-Kent—Leamington
- Ontario
- Voting Attendance: 65%
- Expenses Last Quarter: $153,134.70
- Government Page
- Dec/7/23 1:51:56 p.m.
- Watch
Mr. Speaker, this morning, two of Canada's largest grocery retailer CEOs testified that the carbon tax applied to the farmer, the trucker, the food producer and themselves will get passed on to the consumer, contrary to one of the questions from a member across the way to my hon. colleague from Elgin—Middlesex—London, that the grocery retailers are putting the carbon tax in their pockets.
It is being passed on to the consumer. Would my colleague agree?
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Madam Speaker, I share with my neighbour and friend concern about the impact of the cost of groceries on Canadians.
Rather than an excess profit tax on retailers, if we were to wipe out the profit entirely of the retailers for the moment, it would take the price of a bag of groceries from $25 down to $24. Is that sufficiently low for Canadian consumers if that is the only solution being proposed or, if that is not low enough for Canadians, what other solutions would he acknowledge? Higher interest rates are impacting the food value chain and the carbon tax is impacting the food chain. What other solutions would he have?
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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, the reality is that the government needs to look at the impact of all of its policies on consumers, who are facing 10%-plus food inflation and 6% to 7% on a monthly basis on all other costs of living. The impact of that on our most vulnerable is what concerns the members on this side of the House.
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Madam Speaker, as the member knows, this side of the House did support the returning of tax to constituents.
However, when I opened my speech yesterday, I said that the fall economic statement presented an opportunity for the government to make hard decisions. It did not. Now consumers and Canadians have to make those hard decisions.
In the end, the more the government spends, the more things cost. It is as simple as that.
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- Mar/29/22 2:33:34 p.m.
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Mr. Speaker, the United Kingdom implemented a properly structured grocery code of conduct after trying the Australian model and failing. U.K. consumers are now experiencing lower food costs at the grocery shelf because their supply chains operate more efficiently. Here the potential CP Rail strike triggered threats of fines from our retailers to our national food suppliers three weeks prior to even the strike having a deadline.
The cost of living is skyrocketing here. Canadian families cannot afford to put food on their tables. When will the NDP-Liberal government implement a properly structured grocery code of conduct?
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