Buzz about deal with EU misses essential point

Major farm commodity groups were out in full force this week to support the federal government's push to get more bilateral trade going between Canada and the European Union.

Fifty agri-food leaders participated in the 18 events held across Canada Friday and the email inbox was jammed with press releases from organizations emphasizing how big this deal could be for Canadian farmers.

"Trade is critical to the viability and vitality of Canada's agriculture and food sectors," said Canadian Agri-Food Trade Alliance (CAFTA) president Richard Phillips in a release. "In Canada we export $40 billion a year in agriculture and food products. Without trade, the size, shape and stability of Canada's agri-food sectors would change for the worse."

A successful conclusion to the CETA negotiations can potentially benefit the canola industry through a reduction of oil tariffs and greater predictability and co-operation on trade issues, said Jim Everson, vice-president of corporate affairs for the Canola Council of Canada. "In the short term we would anticipate more canola oil being exported for industrial purposes, including biodiesel. But there's also potential for canola meal to supply some of the livestock-feed demands in the EU."

Canada currently exports half of its agriculture and food products, including 50 per cent of its beef production, 65 per cent of its malt, two-thirds of its pork, almost 75 per cent of its wheat and 85 per cent of its canola. CAFTA members represent 80 per cent of Canada's agri-food exports.

There's no denying trade is good and important to the agricultural industry in Canada, or that this country needs to move beyond its dependence on the U.S. market as its key export customer. Our sales to the EU are one-tenth of exports to the United States. It is believed a Canada-EU deal could boost bilateral trade with the EU by 20 per cent, adding $12 billion to the Canadian economy.

But another event this week underscored an odd dichotomy emerging in this country's food system.

Manitoba Premier Greg Selinger was in a Safeway grocery store to launch a new campaign encouraging Manitoba consumers to spend more of their food dollar on locally produced and processed foods.

The grocery chain is introducing new signs and shelf markers highlighting the products that meet the criteria for being "made in Manitoba." Other stores are likely to follow.

An initiative like this one is tiddlywinks to the export-oriented commodity agriculture business, but if consumers buy in, the economic spinoffs to farmers and the provincial economy could be every bit as significant as selling a few more boatloads of canola or pork to European processors.

For starters, although Canada is one of the world's largest agri-food exporters, it is anything but self-sufficient in food. Manitoba is Canada's third-largest cattle producer, but due to a lack of processing capacity, of the 60 million pounds of beef consumed in this province, less than 10 million pounds comes from local sources.

As noted by the Hellman's online Eat Real, Eat Local campaign, this country imports 53 per cent of its vegetables and 98 per cent of its fruit -- not because we can't produce enough, but because imports are cheaper. But those low prices come at a cost.

"This impacts far more than our dinners, it affects the economy, the environment and our neighbourhoods," as local producers are squeezed out of business and more of Canada's food dollars end up in foreign countries.

"So are cheap imports really worth it?" the online video asks.

Various studies have identified three core beneficiaries from supporting local food systems, starting with the economy and the environment. Local food systems keep money circulating and that creates jobs. They can be more environmentally sustainable, although they aren't always. Plus, it makes people more sociable.

Producers selling directly to consumers typically see a 40 to 80 per cent higher return over marketing through conventional networks. An Alberta study estimated if 25 per cent of Edmonton residents shifted 40 per cent of their food dollars to local food purchases, the multiplier effect would bring the economic impact to over $2 billion.

A study in the U.K. found if every person and business in Devon switched only one per cent of their current spending to local goods and services, an additional 52 million English pounds would flow into the local economy annually.

In Minnesota, researchers concluded if area consumers were to buy 15 per cent of food from local sources, it would generate income equal to two-thirds of the farm subsidies farmers received annually.

Farmers often accuse their urban neighbours of having Perimeter vision. It works both ways.

Laura Rance is editor of the Manitoba Co-operator. She can be reached at 792-4382 or by email: laura@fbcpublishing.com

Republished from the Winnipeg Free Press print edition April 28, 2012 B8