This House of Commons Agriculture and Agri-Food committee meeting continued its study on reference prices in the beef and pork supply chains. Witnesses included Thomas Beretta from Beretta Farms, Calvin Vaags from True North Foods, Indira Moudi from Viandes Lafrance, and officials Donald Boucher from Agriculture and Agri-Food Canada and Diane Allan from the Canadian Food Inspection Agency.
Thomas Beretta described the pressures on small meat processors, including a severe shortage of skilled labour in rural areas and the uncertainty created by the closure of the agri-food pilot for temporary foreign workers in 2025. He recommended extending labour market impact assessments from one to two years, improving provincial nominee programs, and creating a sector-specific immigration stream. He also raised concern about the closure of the Lacombe Research and Development Centre, arguing it will hurt Canada's ability to remain competitive in meat processing.
Calvin Vaags explained that Canadian beef prices are heavily influenced by U.S. markets due to integrated trade, but that this reference pricing is incomplete without adjustments for Canadian costs. He argued that high beef prices stem from a long-term shortage of cattle, as cow-calf producers have not been profitable enough to rebuild the herd. He called for mandatory price reporting in Canada, similar to the U.S. system, and for a support program for small packers based on historical margins to prevent further consolidation.
Indira Moudi stated that the current U.S.-based reference price does not reflect the economic realities of independent Canadian processors, making it impossible for them to compete for large retail contracts despite having capacity and demand for local product. She proposed a targeted safety net triggered when margins fall below a historical threshold, along with temporary liquidity support, to stabilize independent processors. She emphasized that without such tools, Canada risks losing its diversified processing infrastructure and food sovereignty.
Donald Boucher noted that Canada lacks a legislated requirement for mandatory wholesale meat price reporting, unlike the United States, and that AAFC supports industry-led efforts to improve transparency. He acknowledged that a Canadian reference price could increase confidence in supply chains but said the link to consumer prices is not direct, and that regional differences would need to be considered. He confirmed that AAFC is exploring options to support small and medium processors, including through Farm Credit Canada.
Diane Allan stated that the CFIA does not set reference prices or market livestock, but supports the sector through licensing guidance, slaughter service pilots, and regulatory changes to align Canada's specified risk material rules with the U.S. She confirmed that the CFIA is targeting June for publication of those regulatory changes in Canada Gazette, part II, and that recent budget cuts are being managed to protect frontline inspection services.
After the witness testimony, the committee debated a motion to study the closure of several Agriculture and Agri-Food Canada research centres, including the Lacombe Research and Development Centre. An amendment was proposed to add the Sainte-Foy research centre. The committee ultimately agreed to refer the motion to the subcommittee on agenda and procedure for scheduling.
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