Government of Canada launches consultations to inform the National Agricultural Labour Strategy6/28/2022
From: Agriculture and Agri-Food Canada
June 27, 2022 – Blainville, Quebec Canada's agriculture and agri-food sector is an important engine of economic growth that feeds millions of people in Canada and around the world. It is also part of the country's critical infrastructure, essential to the health and well-being of all Canadians. Today, the Minister of Agriculture and Agri- Food, the Honourable Marie-Claude Bibeau, launched consultations to solicit input and inform a National Agricultural Labour Strategy. The agriculture and agri-food sector faces obstacles that distinguish it from other economic sectors currently facing labour shortages. As part of the engagement process, an online consultation will open on June 27, 2022 and run until September 28, 2022. This process will seek input on recommendations to address chronic workforce challenges to build short- and long-term solutions that enable the agriculture sector to attract a skilled workforce. Provinces and territories, as well as employers, unions, underrepresented groups, workers, and other key groups will be engaged to develop the strategy and ensure it reflects the unique needs of the sector. A number of areas of focus have been identified, including the use of automation and technology, targeted skills development and training, employment incentives and best practices, improved working conditions and benefits; and programs to recruit and retain workers. The sector is already demonstrating leadership in tackling these challenges, through initiatives such as the Canadian Agriculture Human Resource Council-led development of a National Workforce Strategic Plan for Agriculture and Food and Beverage Manufacturing. The Government of Canada's National Agricultural Labour Strategy is intended to complement these efforts and utilize input directly from industry to achieve solutions. The Government of Canada is committed to taking concrete action in addressing the ongoing labour challenges facing the country's agriculture and agri-food sector and to best position the sector for future growth. Quotes "As everyone is looking to Canada to increase its contribution to global food security, our agriculture and agri-food sector is facing a severe labour shortage that prevents it from reaching its full potential. I encourage all stakeholders to take part in these consultations, through which our government wishes to foster the significant engagement of the industry and ensure that together we put in place effective and sustainable solutions." - The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food "A skilled and reliable labour force is an important part of our resilience as a sector. We have already seen, and will continue to build off, the strong leadership in this space. The strategy will help to ensure that Canada continues to deliver the high quality of food needed in our country and around the world." - Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Member of Parliament for Glengarry–Prescott–Russell "Canada's agricultural sector feeds millions of people each year, and is a huge driver of our national economy. To ensure it can continue to grow and innovate, we're working with industry partners to build the strong, skilled workforce they need to thrive." - The Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion "We at CFA are excited for the launch of these consultations, as they will be coordinating closely with the CAHRC National Agriculture, Food and Beverage Manufacturing Workforce strategy co-chaired by CFA and Food and Beverage Canada. These consultations, along with the development of our Workforce Strategy will create pragmatic solutions for short and long-term labour issues in the food supply chain." - Mary Robinson, President of Canadian Federation of Agriculture "CAHRC is pleased for the launch of these timely consultations on a sector-specific Agricultural Labour Strategy. We look forward to working closely and collaboratively with AAFC and our partners CFA and Food and Beverage Canada on our complimentary initiatives that will go a long way towards finding long-term solutions for a robust, skilled workforce." - Paul Glenn, Chair, Canadian Agricultural Human Resource Council "Food and Beverage Canada welcomes the launch today of consultations to develop a sector-specific labour strategy to address labour shortages in food and beverage manufacturing, as well as in agricutlure. With our partners at CAHRC and CFA, we look forward to continuing our work on the National Workforce Strategic Plan for Agriculture and Food and Beverage Manufacturing, which will help to inform these important consultations as we seek to develop a roadmap to address persistent labour shortages in the agri-food sector". - Kathleen Sullivan, CEO, Food and Beverage Canada Quick Facts
Contacts Marianne Dandurand Press Secretary Office of the Minister of Agriculture and Agri-Food marianne.dandurand@agr.gc.ca 343-541-9229 Media Relations Agriculture and Agri-Food Canada Ottawa, Ontario 1-866-345-7972 aafc.mediarelations-relationsmedias.aac@agr.gc.ca Canadian Dairy Commission
OTTAWA, June 21, 2022 On May 27, 2022, Dairy Farmers of Canada asked the Canadian Dairy Commission (CDC) to review the price that farmers get for their milk due to the current inflation. An important part of the CDC’s mandate is to provide efficient dairy farmers with the opportunity to obtain a fair return for their labour and investment. The CDC therefore agreed to review the request to determine if a price increase was warranted before next year. After reviewing the points of view expressed during the consultations as well as economic data, the CDC recommends that on September 1, 2022, the farm gate milk price increase by $1.92/hl (less than 2 cents per litre). The increase in producers’ revenues will partially offset increased production costs due to inflation. Feed, energy, and fertilizer costs have been particularly impacted, with increases of 22%, 55% and 45% respectively since August 2021. Next fall, during the regular price review, the September 1 adjustment will be deducted from any adjustment for February 1, 2023. In making its decision, the CDC considered possible impacts of a price increase on consumers and demand. Nutritious dairy products must remain affordable for Canadian families. Furthermore, dairy farmer revenue has improved in recent months, partly due to last February’s price increase and partly due to the rise in world prices, which affects a significant part of the milk that farmers sell on the domestic market. The adjustment will increase by 2.5% on average the price for milk used in the manufacture of dairy products such as milk, cream, yogurt, cheese and butter intended for the retail sector and the foodservice industry. This increase will be reflected in the milk class prices according to a ratio of 60% on butterfat and 40% on other milk components. The net impact on consumers will also be influenced by factors such as transportation, distribution and packaging costs throughout the supply chain. The price paid to farmers is only part of the price paid by consumers. In the last five years, the consumer price index for dairy increased by 7.7%. This compares to 14% for meat, 21% for eggs, and 32% for fish. The CDC is grateful to the following stakeholders for presenting their views on a potential increase and the impacts a price adjustment would have on their sector: Dairy Farmers of Canada, Dairy Processors Association of Canada, Consumers’ Association of Canada, Retail Council of Canada, Canadian Federation of Independent Grocers and Restaurants Canada. The new farm milk prices will become official once they are approved by provincial authorities in mid-July 2022. For more information, please contact: Chantal Paul Director, Corporate Services Tel.: 613-790-0929 Email: Chantal.Paul@cdc-ccl.gc.ca Web site: www.cdc-ccl.gc.ca  The British Columbia Milk Marketing Board, under federal and provincial law, promotes, controls and regulates the production, transportation, packing, storing and marketing of milk, fluid milk and manufactured milk products in British Columbia. A Board Member is to be appointed by MIAC with a three-year term effective November 2022. (Reference: BCMMB Election and Appointment Rules and Procedures, July 9, 2021) Board duties include the analysis and interpretation of detailed statistics in relation to production, product quality, consumption patterns, and industry economic impacts, and direct involvement in regional, national and international policies. The person appointed will have strong skills in communication, complex analysis and decision-making. Good background knowledge of the dairy industry and supply management will be important. Board members are required to relate well to and have the confidence of producers, processors, suppliers, Board staff and other stakeholders. This part-time position is suitable for an individual who can commit to Board and other meetings, likely or approximating three to five days a month, and who can undertake some travel. This Board Member cannot be a licensed producer. The BC Milk Industry Advisory Committee invites applications from qualified individuals who are keen to make an active contribution to the Dairy industry. If you feel qualified and the opportunity is of interest, to apply for an interview please send your resume in confidence by September 30, 2022: Via email to: miac@bcmilk.com Minister Bibeau launches a new support program for processors of Canada’s supply-managed commodities3/10/2022
From: Agriculture and Agri-Food Canada
News release March 9, 2022 – Ottawa, Ontario – Agriculture and Agri-Food Canada Canada’s supply management system is a model of stability which provides a fair price for farmers, stability for processors, and safe, high quality products for Canadians. This system ensures the viability of family farms and is the backbone of rural communities across the country. Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, along with Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, announced the launch of the Supply Management Processing Investment Fund, worth $292.5 million, to help processors of supply-managed commodities increase their competitiveness and resilience in the face of evolving markets. The Supply Management Processing Investment Fund is part of the Government of Canada’s commitment to support processors in these sectors to address the impacts of international trade agreements. Through this program, processors of supply-managed commodities will have access to funding to improve their productivity and efficiency through investments in new automated equipment and technology. The Fund leverages private investment in processing plants to accelerate adoption of automation to lower processing costs, address labour shortages and enhance product quality. Launching today, the two-step application process includes first submitting a Project Summary Form, which will help to determine a project’s eligibility and alignment with program criteria and priorities. Those successful at this stage will be invited to submit a full application. Work is underway with supply-managed sectors to determine full and fair compensation for the impacts of the Canada-United States-Mexico Agreement within the year. By providing processors the support needed, the Government of Canada is ensuring Canadian family farms thrive and remain well positioned for the future. Quotes “Our government strongly supports supply-managed sectors and, as promised, we are rolling out various programs to compensate producers and processors who have lost market share further to trade agreements. Today, we are announcing the terms of support for dairy, poultry and egg processors to promote investment in their operations and thereby improve their competitiveness and resilience.” - The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food “Canada’s supply-managed dairy, poultry and egg farmers are part of the backbone of rural regions from across Canada. With the launch of the Supply Management Processing Investment Fund, the Government of Canada is providing critical investments to accelerate the adoption of new automated equipment and technology for processors to improve their productivity and efficiency, and in turn increase their competitiveness and resilience.” - Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food “Dairy processors welcome the announcement of the Supply Management Processing Investment Fund, which will support the additional investments and innovations necessary for Canada's dairy processing sector to transition to new market realities resulting from additional market access concessions granted in trade agreements with Europe and Trans-Pacific countries. By supporting investments in processing plants, the Fund will help boost the competitiveness, productivity and long-term sustainability of the Canadian dairy industry.” - Michael Barrett, Chair, Dairy Processors Association of Canada “We are pleased to see the government fulfill its commitment to support additional investments in poultry and egg processing plants as a means to mitigate the impact of market access concessions made in CPTPP. The Fund will leverage private investments in processing plants to boost productivity, respond to changing customer expectations and improve our industry’s efficiency, viability and competitiveness.” - Ian McFall, Chair, Canadian Poultry and Egg Processors Council Quick facts
Dan Wong
President, Western Dairy Council These are trying times. That might be the biggest understatement of the past two years as the dairy industry in western Canada -- like all sectors of the economy -- wrestles with a host of unprecedented challenges ranging from drought to floods, to supply interruptions to, most recently, the effects of the Omicron variant of COVID-19. The cumulative effect of these challenges has been to create unprecedented disruptions throughout supply chains for many consumer goods. It’s not the way any of us had hoped to start the New Year. Recently, we’ve heard reports of dairy product shortages and “out-of-stocks” at some grocery stores, not just in British Columbia or western Canada, but across the entire country. This is an obvious source of concern as everyone involved in the Canadian dairy industry -- including farmers, their input suppliers, transporters, processors, service providers, distributors and grocery stores -- is dedicated to ensuring that consumers have ready access to the dairy products they want and need, all the time. When we hear about empty store shelves, the natural reaction is to ask, “where’s the bottleneck?” The answer is that depending upon the product, the geographic location and the specific circumstances in a given day or week, it can be anywhere, or in several places, throughout the supply chain. Equipment and supplies are held up at ports. Truck transport is slowed by a shortage of drivers and, as we’ve seen in BC over the past two months, by highways that have been battered and destroyed by once-in-a-lifetime floods. Even more recently, we’ve seen the Omicron variant take a toll on all segments of the supply chain. The impact of Omicron can’t be underestimated. Food & Beverage Canada recently reported that food processors are experiencing about 30% absenteeism, presumably reflecting the pervasiveness of Omicron. Earlier in January, the Retail Council of Canada reported absenteeism of up to 20% at retail stores, including grocery stores. In addition, there are reports that restaurants have had to curtail their hours of operation because of staff shortages owing to COVID-19. And yet, it’s not just Omicron, but the accumulation of all these factors that has caused disruptions in the supply chain. Producers have faced feed shortages as a result of severe weather and transportation challenges. Processors have experienced slowdowns in the delivery of packaging and other supplies. Transport companies, faced with shortages of qualified drivers and vehicles, a situation that pre-dated the pandemic, are now faced with longer hauling times as a result of traffic restrictions on damaged highways. In addition, grocery retailers, on the receiving end of these accumulated delays, are not immune to staff shortages related to the Omicron variant and may take a bit longer to get shelves re-stocked. WDC’s members have also felt the impact of these disruptions. COVID-19-related absenteeism has affected us too, as have delays in the delivery of supplies and, at the peak of the flood catastrophe in BC’s Fraser Valley, regional access to the milk supply. Yet the prevailing feedback from our members is that, while operations and distribution may be affected in certain cases, they are still getting products to market. Aside from the occasional weather delay (it being January), the dairy processing sector in western Canada is functioning well and customer orders are being filled. Of course, none of this would be possible without the exceptional efforts put forward by the dairy farmers and staff at the Milk Marketing Boards who have worked tirelessly to keep milk flowing (even in British Columbia, where production has been restored after one of the most incredible environmental disasters in the province’s history). Despite the challenges, all segments of the dairy supply chain are doing everything they can, in unprecedented circumstances, to ensure that high quality dairy products are available to consumers in all regions of the country. We are not alone in this. Other agri-food sectors are also managing supply chain disruptions, as are industries as diverse as automobiles, electronics and building supplies. Some economists expect supply chain issues to persist for the remainder of the year. It will be a challenge, but we can expect the dairy industry to come through, as it always has. On January 4, 2022 the CUSMA Dispute Settlement Panel published its report on Canada’s administration of its dairy tariff rate quota (TRQ). At the centre of the dispute is how Canada has allocated its TRQs – the quantities of dairy products such as milks, cheeses, powders, yogurt and ice cream that can be imported at lower duty levels under the terms of CUSMA.
The report finds on the one hand that "Canada’s practice of reserving TRQ pools exclusively for the use of processors is inconsistent with Canada’s commitment in Article 3.A.2.11(b) of the Treaty not to “limit access to an allocation to processors.” On the other hand, the report finds that “nothing in the panel’s ruling constrains Canada’s discretion to administer its TRQ however it wants, within the treaty’s set limits. Quite the contrary – Canada has significant discretion in designing and implementing its allocation mechanisms.” And further, “The Panel agrees with Canada that the design of an allocation mechanism, including who may obtain an allocation, is left up to the discretion of the importing Party, in this case Canada, to determine, subject to consistency with the other provisions of the Agreement.” Reaction to the decision has been mixed, with both countries claiming victory. U.S. Trade Representative Katherine Tai proclaimed that “This historic win will help eliminate unjustified trade restrictions on American dairy products, and will ensure that the U.S. dairy industry and its workers get the full benefit of the USMCA (as it is known in the United States) to market and sell U.S. products to Canadian consumers.” For Canada’s part, International Trade Minister Mary Ng and Agriculture and Agri-food Minister Marie-Claude Bibeau declared that “We are pleased with the dispute settlement panel’s report, which ruled overwhelmingly in favour of Canada and its dairy industry. In particular, it is important to note that the panel expressly recognizes the legitimacy of Canada’s supply management system. The panel also confirms that Canada has the discretion to manage its TRQ allocation policies under CUSMA in a manner that supports Canada’s supply management system.” Canada now has until February 3 to propose the measures it will take to comply with the CUSMA panel’s decision. The federal government has indicated that it will work with the industry to ensure that its TRQ allocation mechanism satisfies the panel’s decision. The final panel report is available here. On November 18, 2021, in response to extreme weather events in the southwestern region of the province and the Fraser Valley in particular, the Government of British Columbia declared a provincial state of emergency to mitigate the impacts on transportation networks and the movement of essential goods and supplies, including raw milk and finished dairy products.
All WDC members in British Columbia and several outside the province have been directly affected by the events and resulting disruptions to the dairy supply chain. The Fraser Valley accounts for three-quarters of British Columbia’s milk supply and is home to several major processing plants. The disastrous flooding of more than sixty dairy farms and the closing of all access routes into and out of the region has inhibited the supply of milk to processing plants throughout the Lower Mainland. The Western Dairy Council is working closely with the BC Milk Marketing Board, the BC Dairy Association, the Canadian Dairy Commission and the Dairy Processors Association of Canada along with all federal, provincial and local government authorities to respond quickly and effectively to supply chain disruptions resulting from these events. As always, our primary interest to make sure consumers have ready access to fresh dairy products wherever they are located. We applaud and support the efforts of everyone in the dairy industry, in government and in the local communities to restore the supply chains and get products to market as quickly as possible despite the circumstances. The Western Dairy Council and its members were shocked and dismayed by recently-released video footage showing disturbing incidents of animal abuse at a Fraser Valley dairy farm. Our members do not condone the mistreatment of animals at any farm under any circumstances and appreciated the swift action taken by the BC Milk Marketing Board (BCMMB) to suspend the farm’s license, pending investigation, upon learning of the incidents.
Since that time, we have been kept apprised of BCMMB’s investigation and the resulting Corrective Action Plan that it has set as a requirement to reintegrate the farm’s milk back into the supply. We understand that BCMMB’s decision to reinstate the farm’s license is conditional on the full implementation of the Corrective Action Plan. We expect that BCMMB will ensure that all provisions of the plan, including requirements for continuous external oversight and frequent, unannounced inspections, will be completely adhered to at all times. The 2021 Annual Meeting of the Western Dairy Council will be held on Thursday, July 22, 2021 from 9:00 am – 9:30 am (Pacific).
As required by the Canada Not-for-Profit Corporations Act, the meeting will transact the following business:
This year’s Annual Meeting will again be conducted by videoconference. WDC members seeking more information or wishing to confirm their attendance may do so by emailing info@westerndairycouncil.com. June 29, 2021
(OTTAWA, ON) – The Dairy Processors Association of Canada has joined others in Canada’s dairy sector to ask Federal, Provincial and Territorial (FPT) Ministers of Agriculture to implement mandatory and enforceable provincial Grocery Codes of Conduct, supported by a federal framework, to address current issues within Canada’s grocery retailer-supplier relationship. With a letter sent on June 28, the dairy sector joins numerous other farming and processing groups across the country in making this request. This request comes as a Working Group established by FPT Ministers of Agriculture completes its report on the relationships between Canada’s retailers and suppliers. The work of the FPT Working Group was welcomed by farming and food processing groups that called for action on retailers’ use of arbitrary fees and deductions and lack of adherence to terms of contracts. The dairy sector believes that the current environment whereby retailers hold significant market power has limited investment in Canada’s agri-food sector and instills a culture of distrust between retailers and suppliers, which ultimately hurts consumers. The signatories have asked the FPT Working Group to consider the positive impacts of mandatory codes, such as that of the United Kingdom, have had in reversing this trend. Thus, the sector believes that mandatory codes are the only way to restore fairness and balance in Canada’s food supply, for the benefit of the entire value chain, from farm to fork. Full letter: Letter – FPT Working Group (28-06-2021) |
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