Senate agriculture committee creates a scenario for boosting the agrifood sector

Support innovation and cut needless regulations among its proposals.Ottawa—The Senate agriculture committee has pulled together a wide range of ideas into nine comprehensive recommendations to guide the federal government in boosting the export of value-added food products.In a report entitled Made in Canada: Growing Canada's value-added food sector, the committee calls for improved regulations to grow processed food exports, investing in innovation, overhauling regulations to reduce internal trade barriers and boost export prospects, updating the Canada Food Inspection Agency and Canada Border Services Agency and supporting research and innovation to encourage food exporting businesses.“Currently, only about half of the food grown in Canada is processed here, demonstrating a gap the committee believes should be closed,” the report said. The committee held hearings and worked on the report through 2018 and the first half of 2019.Committee member Rob Black said the report “presents an opportunity for Canada to become more competitive in global markets. Canada is known for quality agricultural products and processes. However, there absolutely is room for improvement in terms of adding value to those products in order to make Canadian exports the envy of countries around the world.”Encouraging innovation, growth and competitiveness in the agrifood sector is a vital role for the government, he said. Supporting the supply management sector and the development of a global marketing program is also vital.“Canadian farmers, processors, and others in the agricultural industry are already doing fantastic work,” he said. “But the industry needs the government behind it to implement policies that help us meet and surpass the high standards set by other countries.”Committee chairwoman Diane Griffin said, “This is a sector where we're already seeing incredible ingenuity in the development of products that meet both national and international demand. With support from the federal government to break down regulatory barriers and foster further innovation, Canada's value-added sector could become an essential component of the Canadian economy.”The report says the government should work to harmonize trucking regulations and improve transportation networks across the country and rectify the agrifood sector labour shortage by expediting the path of temporary foreign workers to permanent residency. Days before the report was released, the government moved to start dealing with the problem.The food processing sector is one of the country's largest employers, representing 17.3 per cent of manufacturing employment, the report said.  Of all value-added food companies in Canada, 94.1 per cent have fewer than 100 employees. Companies with more than 500 employees make up only 0.5 per cent of the total. The average job vacancy rate in the agriculture sector varied between 4.5 and 6.3 per cent in 2017, while the average for all Canadian industries was only 2.8 per cent that year.“Canada's abundance of primary products provides a comparative advantage to the value-added sector: it has a ready supply of product to which it can add value,” the report said. “However, the sector must ensure that it adds value through a consumer-centric approach, including innovating to develop products that meet emerging consumer trends.“The government should work to develop a global marketing program that focuses explicitly on increasing the profile of the Canada Brand,” the report said. “By improving food processing capacity within our borders, supporting innovation, and strengthening our global image, Canada can increase its international exports.“Regardless of their size, companies sometimes need government support to complete research or to take on new research and development projects,” it said.“While regulatory safeguards are necessary to preserve confidence in Canada's reputation for safe and high-quality agrifood products, the current system restricts innovative practices and products. The committee recommends updating the regulatory framework so that it encourages innovation; this will increase the ability of Canada's value-added agrifood products to reach international markets.“By expanding the reach of Canadian products to international markets, Canada can increase profits and create jobs. To further close the export gap between primary and value-added foods and to take advantage of international appetite for Canadian products, financial investment must be made to encourage and foster innovation, which could include developing new products, new packaging and marketing approaches, and more efficient means of production.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.