Canada's Senate Pushes Value Added Agriculture

OTTAWA - Dec 14/04 - SNS -- Canada's Senate Committee on Agriculture and Forestry says expanding value added activities in Canadian agriculture should be a priority for the country.

released a report on the current status and importance of developing value-added agriculture in Canada. Value-added is defined as a transformation or innovation that enhances the marketability of a product.

In agriculture, it covers activities such as product branding, niche marketing or movement up the food-value chain such as making pasta from wheat, quality wine out of grapes and organic products.

The committee said the 22 recommendations contained in the report are intended to assist farmers in pursuing value-added ventures. "Encouraging this development will serve to enhance economic growth both domestically and internationally – something that many farmers still suffering from the effects of the BSE crisis could desperately use," said committee Chair Joyce Fairbairn.

Recommendations contained in the report are:

That the federal government expand the application of food safety systems such as the Hazard Analysis and Critical Control Points (HACCP) system among commodity sectors, and enhance funding to help small-scale food producers and processors achieve HACCP standards or other similar food safety and monitoring standards.

That the federal government assist the wine industry in Atlantic Canada with funding for the development of a quality-assurance governance system in order to facilitate the implementation of national Vintners Quality Alliance standards.

That the costs associated with Canadian Food Inspection Agency food safety requirements that are put in place due to the adoption and enforcement of national wine standards be waived for the first two years of implementation for small wineries.

That the federal government work with the organic sector throughout the value chain, and help establish an organic value-chain round table to address issues that restrict the production, distribution and retailing of organic agricultural products.

That the federal government provide leadership and work with the provinces and the organic industry to put in place national regulations specifically on the labelling of products of organic agriculture, no later than 2005.

That the federal government develop tax and expenditure incentive programs that recognize the extent to which organic practices benefit the environment, in order to help farmers make the transition to organic farming.

That the federal government commission a study to examine the Canadian Wheat Board’s organic grain policy, with the goal of facilitating the marketing of Western organic wheat and barley.

That the federal government investigate options such as loan guarantees and other measures that would increase access to capital for farmers considering the purchase of New Generation Cooperative shares.

That the Canadian Wheat Board allow further flexibility in developing New Generation Cooperatives in Western Canada.

That the federal government facilitate development and marketing of value-added agriculture within the supply management system by revisiting, with the industry, the system’s regulations and terms.

That the federal government introduce or increase marketing initiatives through the Canadian Agriculture and Food International program, and other programs, to aggressively promote high-quality Canadian products domestically and around the world.

That the federal government provide to all farmers national and international marketing seminars on a continuous basis.

That the federal government establish a “One Stop Web Center” that would communicate agricultural programs, research and other initiatives.

That the federal government increase funding for agricultural research and development in areas specific to the public interest, such as food health and safety, and the environment.

That the federal government adopt a comprehensive national research framework that considers broad agricultural research issues across commodity sectors.

That the federal government establish a cross-sector value-added round table focused on issues specific to agricultural research and innovation.

That Canada’s WTO negotiations identify, as one of Canada’s priorities, the reduction of tariff rate escalation practices of setting higher tariffs on processed products.

That the federal government consult, and include in negotiations of trade implementation agreements, unbiased industry experts who have extensive knowledge of the processing and manufacturing requirements of the industry or industries that could be affected by these agreements.

That the federal government consider innovative ways to use the venture capital funding announced in the 2004 federal Budget to increase value-added capacity in the livestock and other agricultural sectors.

That the review called for in Article 902.4 of the Agreement on Internal Trade, with regard to the scope and coverage of agricultural internal trade, be tabled as per the Agreement.

That the comprehensive review called for in Article 903.2a of the Agreement on Internal Trade, with regard to the framework for governing supply management, be tabled as per the Agreement.

That a review of interprovincial marketing, distribution and access to points of sale of alcoholic beverages be conducted by federal and provincial governments under the auspices of the Agreement on Internal Trade.