The House of Commons Standing Committee on Agriculture and Agri-Food met to study reference prices in the pork and beef supply chains. Witnesses included René Roy and Stephen Heckbert from the Canadian Pork Council, Louis-Philippe Roy and Tristan Deslauriers from Les Éleveurs de porcs du Québec, Dennis Laycraft and Brenna Grant from the Canadian Cattle Association, Kyle Larkin and Claire Citeau from the Canadian Meat Council, and Gilbert Lavoie, an agricultural economist appearing as an individual.
René Roy, on behalf of the Canadian Pork Council, argued that a mandatory price reporting system, modelled on the U.S. Department of Agriculture’s system, is needed to address the current information gap that prevents the industry from realizing its full potential. He highlighted that Canadian pork prices often decouple from the U.S. benchmark without clear causes, and that a transparency system would help assess competitiveness, attract investment, and prepare for potential shocks like African swine fever, without being punitive to processors or retailers.
Louis-Philippe Roy, representing Les Éleveurs de porcs du Québec, emphasized that the current reliance on an American reference price creates vulnerabilities, as seen during the 2015-2019 U.S. production surplus and the 2021-2022 COVID-19 disruptions, when the price did not reflect Canadian realities. He described an inequality of information in negotiations, where producers must disclose costs while processors remain opaque, and called for a Canadian reference price to balance market power and ensure fairer relationships.
Dennis Laycraft, from the Canadian Cattle Association, focused on the beef sector’s challenges, including a 30% increase in input costs from 2020 to 2024 and a shortage of cattle across North America. He urged the government to address regulatory burdens, such as the specified risk material requirements that cost processors $32 million annually, and to avoid policies that encourage imports, which undermine price signals for domestic production. He noted that the sector is working with the Canadian Food Inspection Agency on the SRM file and is encouraged by progress.
Kyle Larkin, representing the Canadian Meat Council, outlined pressures on processors, including a livestock supply shortage, Chinese retaliatory tariffs costing pork processors $177 million annually, labour shortages, and rising input costs. He recommended compensating processors for the Chinese tariffs, extending AgriMarketing funding, aligning the enhanced feed ban with U.S. standards to save $25 million annually, and creating a sector-specific immigration stream. He declined to comment on pricing or margins due to competition law and internal policy.
Gilbert Lavoie, an agricultural economist, explained that the U.S. Livestock Mandatory Reporting Act, passed in 1999, publishes daily net prices for hogs and primary cuts, reducing information asymmetry and fostering investment, such as producer-owned slaughterhouses. He noted that in Quebec, all hogs are sold using a formula based on the U.S. reconstituted carcass price, and argued that a similar Canadian system would provide a more accurate picture of the industry, as the U.S. reality sometimes diverges from Canada’s.
Brenna Grant, from the Canadian Cattle Association’s CanFax division, noted that the boxed beef report was discontinued in 2020 due to confidentiality concerns from packers, given the limited number of players. She suggested that publishing only primal and cutout values, rather than subprimal prices, could address these concerns and help the industry prioritize marketing efforts, though she acknowledged that a free market works best with timely information.
Claire Citeau, from the Canadian Meat Council, welcomed the reopening of the Chinese market to Canadian beef, calling it great news, and noted that the council is working with the government to determine the next steps for exports. She expressed hope that efforts would continue to eliminate tariffs still affecting hog producers and processors.
The committee also debated procedural motions. Richard Bragdon moved for an emergency study on the closure of Agriculture and Agri-Food Canada research centres, which was discussed but not voted on. Sophie Chatel moved to study Bill C-15, specifically clause 223, with one hour for the Minister of Agriculture and one hour for Farm Credit Canada’s CEO, and to send recommendations to the finance committee by February 27, 2026. Dave Epp proposed an amendment to add a second meeting with stakeholders, but Chatel suggested dealing with the motion in one day and revisiting the schedule later. Steven Bonk moved to allow up to three associate members per party to receive documents, which was adopted. Sébastien Lemire was elected second vice-chair of the committee.
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