SUPPLY-managed sectors facing double whammy nfrom page 1
WAGE top-up up to province nfrom page 1
by the three signatory
countries in April triggered a
provision that will see it come
into force July 1.
Dairy Farmers of Canada
says by coming into force
during the current dairy year,
industry will shift rapidly from
a period of adjustment to one
of signicant losses. The
sector will absorb a 40%
reduction in exports
beginning August 1, with
ongoing losses estimated at
$330 million per year.
“It’s very concerning seeing
our marketshare chipped
away like this,” says Ray
Gourlay of Morningstar Farm
in Parksville, whose 50 cows
supply milk to his cheese
company, Little Qualicum
Cheeseworks. “This pandemic,
if anything, has shown us how
fragile our food production
and processing supply chains
really are. At a point in time
when we really should be
strengthening our supply
chain by creating more
localized food processing and
production, we’re creating
more globalized food
processing and importing
more.”
While adding value to his
milk by making cheese adds
value to his farm, this spring
he’s had to ship uid milk to
Island Farms in Victoria. The
revenues haven’t made up for
lost cheese sales, which have
declined 65%. CUSMA isn’t
going to make it any easier to
make a living.
The new trade agreement
is creating challenges for
other supply-managed
sectors, too.
Katie Lowe, executive
director of the BC Egg
Marketing Board, said recent
trade deals mean that by the
time it’s fully implemented,
CUSMA will allow more than
11 million dozen eggs
annually to arrive from the
US.
“With CUSMA coming into
aect mid-year, up to 1.7
million dozen eggs could be
brought in under the
agreement in 2020,” says
Lowe. “These imported eggs
will displace eggs produced
by Canadian egg farmers at a
time when we are in a surplus
situation as the restaurant
and food service sector are
not using eggs at the normal
levels.”
Demand for local eggs
remains strong, however.
“Nearly 90% of Canadians
believe it’s important that the
eggs they purchase are
produced in Canada,” she
says. “COVID-19 has
emphasized the preference
for local food sources.”
BC producers are currently
sending about 25,000 dozen
eggs a week that would have
entered foodservice channels
to food banks as the system
adjusts. This has avoided the
depopulation actions seen in
the US.
Chicken Farmers of
Canada, meanwhile, is
focusing on the eects of
COVID-19 rather than CUSMA.
Unlike dairy producers, the
production year for broilers
parallels the calendar year,
explains CFC communications
director Lisa Bishop-Spencer.
“[CUSMA] doesn’t make a
signicant dierence,” she
says. “We have been working
to determine how to adjust
production levels at the farm
to respond to reductions in
the ability to process our
chickens.”
Production was reduced
12.6% for period A-163 (May
10- July 4), she says, “in an
eort to address the concerns
of our value chain partners as
a result of reduced
foodservice demand during
the pandemic.” Period A-164
(July 5-August 29) will see an
11% reduction in production.
2 | JUNE 2020 COUNTRY LIFE IN BC
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travel restrictions, was hailed
as a success when it was
announced on March 20.
However, it’s now facing
criticism from some groups.
The Western Agricultural
Labour Initiative, for example,
has told Ottawa the current
process for bringing in
workers needs to be
streamlined to avoid delays
and give employers certainty.
Reg Ens, executive director
of the BC Agriculture Council
(which oversees WALI), told
Country Life in BC that best
estimates indicate that worker
arrivals are on par with last
year but the current status of
workers remained dicult to
track, complicating eorts to
identify how serious any
shortfall is.
The latitude local health
ocials have shown in
interpreting public health
regulations has also been a
problem.
Moreover, funding the
federal government promised
of $1,500 per foreign worker
will not simply be paid to
eligible employers as Bibeau
originally promised on April
13. Rather, employers must
apply for it, and it will only
cover costs in excess of those
covered by the provinces, and
only those specic to the
isolation period.
“Only the eligible costs
incurred and paid by the
employer can be claimed,”
explains Bibeau’s sta. “This
includes salary, but can also
include other costs. Cost
categories were left very
broad to allow employers to
claim just about any costs
related to the 14-day isolation,
thus giving them every
opportunity to receive the full
$1,500 per worker.”
BC, for example, covers
accommodation and meals
for incoming workers. These
are not eligible, but wages
would be.
Many business risk
management programs also
rely on provincial
contributions,
such as
AgriRecovery, which the
federal government is using
to support beef and hog
producers unable to sell their
animals. It's promised $125
million, including $50 million
for cattle producers and an
advance of $20 a head for
impacted hog producers.
But since AgriRecovery is a
program funded in
partnership with the
provinces, it depends on BC
pledging its support.
Surveys the CFIB has
conducted indicate that
nearly half of livestock farmers
feel the federal program will
not be helpful, while 42% say
it will assist their businesses.
They’re more optimistic
than producers in the
horticulture sector, where
75% say government relief
programs will not make a
meaningful dierence.
is the $3 billion that Prime
Minister Justin Trudeau
announced May 7 to top-up
wages for workers in essential
sectors. But it was up to the
provinces to set the terms.
“Our government has
clearly recognized that
workers in the food supply
chain, from the farm to the
food store, are all essential –
we look forward to seeing the
provincial plans soon,” Bibeau
said on social media.
Her sta soon followed up,
noting that BC had yet to
announce its plans.
“It is up to provinces now to
determine whether agriculture
counts as essential – some
may not,” a note to Country Life
in BC said.
A query to the BC Ministry
of Agriculture was answered
by the province’s nance
ministry, which said an
announcement was coming.
When it was made May 19, the
plan oered an extra $4 an
hour to frontline workers in
health and social service
occupations. There wasn’t a
cent for farm workers.
Disenchanted
Other federal programs
have also left farm groups
disenchanted.
An arrangement to allow
foreign farm workers to enter
Canada despite international