Response to the federal budget from DPAC, CPEPC, CPMA and F&BC
Responses to the 2021 federal budget from food industry associations are collected here.
The Dairy Processors Association of Canada (DPAC) full statement here welcomes measures announced in the 2021 Federal Budget to support dairy processors impacted by recent trade agreements as a step in the right direction.
Compensation measures totalling $292 million for two agreements, CETA and CPTPP, will support processors under supply management as the industries transition to the new market realities created by the agreements.
“The measures announced in today’s budget are a very good starting point toward the Government’s commitment to ‘full and fair compensation’ for Canada’s dairy processors,” said Mathieu Frigon, DPAC’s President and CEO. “This funding will support the industry as it adapts to the changing market and better position it to contribute to the strong Canadian food supply that Canadian consumers want.”
The Canadian dairy sector has been hard hit by the recent trade agreements, a situation that has only been made worse by pandemic-related market disruptions. Combined, access under CETA, CPTPP and CUSMA represent 10% of the Canadian market, resulting in annual losses of $300 million for Canada’s dairy processors at full implementation.
While the industry welcomes today’s announcement, it does not address the impacts of CUSMA on Canada’s dairy processors. This compensation, as well as the allocation of dairy import permits—known as tariff-rate quota—to dairy processors, will be necessary to ensure the long-term viability of Canada’s dairy sector, and that the Government lives up to its commitment of ‘full and fair compensation’. DPAC will continue to work with the Government of Canada to ensure that this commitment is brought to fruition for all three trade agreements.
The Canadian Poultry and Egg Processors Council (CPEPC) states:
“With Budget 2021, we are pleased to see the government take a step forward in fulfilling its commitment to provide ‘full and fair’ compensation to poultry and egg processors for market access concessions made in recent trade agreements.
We look forward to working with Agriculture and Agri-Food Canada officials to ensure the new $292.5 million Processor Investment Fund helps poultry and egg processors adapt to the CPTPP through productivity and competitiveness-enhancing investments.
Looking ahead, the allocation of tariff-rate (import) quotas and compensation for the impact of CUSMA are two other critical elements that are key to mitigating the impact of recent trade agreements for poultry and egg processors and ensuring the government fulfills its commitment.”
The Canadian Produce Marketing Association (CPMA) is pleased to see that Canada’s economic recovery from the COVID-19 pandemic is the focus in Federal Budget 2021, released yesterday. Budget 2021 includes a number of measures that were recommended by CPMA in its pre-budget submissions to government, including: the extension of the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy, additional supports for the Temporary Foreign Worker program, as well as investments in infrastructure and innovation initiatives.
“Agriculture, including the fresh produce industry, continues to be a major contributor to Canada’s GDP, and will be critical to this country’s successful economic recovery from COVID-19,” said CPMA President Ron Lemaire. “We are pleased to see that the government recognizes the importance of our sector to communities across Canada.”
At the same time, CPMA was disappointed that one of its major recommendations, the implementation of a financial protection mechanism for produce sellers, was not included in the federal budget. CPMA has consistently reiterated the importance of this tool as an opportunity to address gaps in market stability, financial protection, trade and food security, with no cost to the government.
“While we appreciate the federal government’s focus on COVID-19 recovery, the failure to implement a financial protection mechanism in the form of improved bankruptcy protections remains a critical gap for Canadian fresh produce sellers,” said Lemaire. “Especially as we navigate the third wave of the pandemic and look to transition into economic recovery, it is crucial that the government provide all possible no-cost safeguards for our essential supply chain and ensure Canadians can continue to access fresh fruit and vegetable products for their families.”
Other highlights from Federal Budget 2021 for the fresh produce sector include:
- Introduction of a new Canada Recovery Hiring Program for employers that continue to experience declines in revenue due to the COVID-19 pandemic;
- $960 million for a new Sectoral Workforce Solutions Program;
- $140 million to top up the Emergency Food Security Fund and the Local Food Infrastructure Fund;
- Additional $200 million in funding to support on-farm climate action under the Agricultural Climate Solutions program;
- A 50% reduction in general corporate and small business income tax rates for businesses manufacturing zero-emission technologies;
- Additional $1 billion to accelerate the rollout of broadband projects under the Universal Broadband Fund;
- Launch of the Canada Digital Adoption Program to support small and medium-sized businesses in adopting digital technologies; and
- More than $700 million for the Canada Border Services Agency to modernize our borders.
Food & Beverage Canada states: