Agriculture
Is the Meat Industry Equipped to Handle a Pandemic?
Is the Meat Industry Equipped to Handle a Pandemic?
The COVID-19 pandemic has disrupted industries across the world. One of the main sectors that’s concerning experts is the meat and agriculture industry. This concern intensifies in Western Canada since much of the land there is farmland. The imbalance of supply and demand is affecting present-day agricultural production. However, farmers and industry leaders are focused on what is still to come in the future.
From labour shortages to potential outbreaks during production, the future of the meat industry is unclear. The outcome will depend on several factors: government aid, the spread of the virus and COVID-19’s behaviour — which is often unpredictable. Ultimately, the present handling of the meat industry may impact its future and relationship with consumers.
Current Standing
The Government of Canada recently decided to assist farms across the country with federal funding. These farms rely on the production and exportation of meats like beef, pork and chicken to reach supply and demand needs. However, as the virus continues spreading, farmworkers need to maintain physical distance and increase sanitation practices. The government’s funding will compensate workers during this time.
For Canada, part of the stress on the industry comes from the exportation needs. While farmers need to meet country-wide demands, Canada is also an international exporter, especially for the United States.
While the industry is currently suffering from labour shortages, production remains relatively stable. Farmers are adapting to meet new supply and demand requirements. For instance, since restaurants are closing, demands for certain foods, like cheese, will decrease. As workers fall ill and farms need to enforce social distancing, though, production is slowing down.
The funding from Canada’s federal government is supposed to help workers, especially those who are newly arriving. Migrants from Mexico and the Caribbean make up a large portion of Canada’s agricultural workforce. However, whether this funding will be enough is yet to come to light. Additionally, ensuring the even distribution of that money to migrant workers is another issue.
The Industry’s Future
Many experts are focusing on the road ahead. While the current path is fluctuating, the future may hold a more dangerous outcome for the industry. If the virus continues spreading at its current rate, farms may see more issues than ever before.
One of the main factors is the labour shortage. Currently, Canada’s farming labour force is lacking. Production is slow, and workers don’t have the resources and help they need to meet demands. In the future, this could worsen as fewer employees are available. For instance, the poultry sector faces significant demands every day. Part of the process of raising chickens includes weeks of tending to them. If there aren’t enough people to do this job, consumers will see the availability of chicken drop.
The issue of perishables will also present itself. As meat processing must be quick, slower production means more goods will go to waste. Meeting supply and demand requires healthy workers to keep the chain going.
The other major factor that will affect the industry is the spread of the virus. That depends on how the Canadian government handles COVID-19 and how efficiently people practice social distancing. Federal funding will aid production, but if the virus remains present, it will continue spreading. If it reaches processing plants, contamination will become a more serious issue than it already is.
Next Steps
To increase resources and support for farmers and migrant workers, the government will need to provide more emergency funding. This step allows the agriculture industry to invest in more tools, sanitation products, financial support and benefits for all workers. Monitoring the spread of the virus is also crucial. If the government can properly track and isolate cases, COVID-19 will dwindle in its effects. Then, meat industry workers will not have to worry about contracting or spreading the coronavirus.
Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture
Agriculture
Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers
From the Frontier Centre for Public Policy
Bill C-282 currently sits in the Canadian Senate and stands on the precipice of becoming law in a matter of weeks. Essentially, this bill seeks to bestow immunity upon supply management from any potential future trade negotiations without offering increased market access to potential trade partners.
In simpler terms, it risks holding all other economic sectors hostage solely to safeguard the interests of a small, privileged group of farmers. This is far from an optimal scenario, and the implications of this bill spell bad news for Canadians.
Supply management, which governs poultry, egg, and dairy production in Canada, has traditionally enabled us to fulfill our domestic needs. Under this system, farmers are allocated government-sanctioned quotas to produce food for the nation. At the same time, high tariffs are imposed on imports of items such as chicken, butter, yogurt, cheese, milk, and eggs. This model has been in place for over five decades, ostensibly to shield family farms from economic volatility.
However, despite the implementation of supply management, Canada has witnessed a comparable decline in the number of farms as the United States, where a national supply management scheme does not exist. Supply management has failed to preserve much of anything beyond enriching select agricultural sectors.
For instance, dairy farmers now possess quotas valued at over $25 billion while concurrently burdening dairy processors with the highest-priced industrial milk in the Western world. Recent data indicates a significant surge in prices at the grocery store, with yogurt prices alone soaring by over 30 percent since December 2023. This escalation is increasingly straining the budgets of many consumers.
It’s evident to those knowledgeable about the situation that the emergence of Bill C-282 should come as no surprise. Proponents of supply management exert considerable influence over politicians across party lines, compelling them to support this bill to safeguard the interests of less than one percent of our economy, much to the ignorance of most Canadians. In the last federal budget, the dairy industry alone received over $300 million in research funds, funds that arguably exceed their actual needs.
While Canada’s agricultural sector accounts for approximately seven percent of our GDP, supply-managed industries represent only a small fraction of that figure. Supply-managed farms represent about five percent of all farms in Canada. Forging trade agreements with key partners such as India, China, and the United Kingdom is imperative not only for sectors like automotive, pharmaceuticals, and biotechnology but for the vast majority of farms in livestock and grains to thrive and contribute to global welfare and prosperity. It is essential to recognize that Canada has much more to offer than merely self-sufficiency in food production.
Over time, the marketing boards overseeing quotas for farmers have amassed significant power and have proven themselves politically aggressive. They vehemently oppose any challenges to the existing system, targeting politicians, academics, and groups advocating for reform or abolition. Despite occasional resistance from MPs and Senators, no major political party has dared to question the disproportionate protection afforded to one sector over others. Strengthening our supply-managed sectors necessitates embracing competition, which can only serve to enhance their resilience and competitiveness.
A recent example of the consequences of protectionism is the United Kingdom’s decision to walk away from trade negotiations with Canada due to disagreements over access to our dairy market. Not only do many Canadians appreciate the quality of British cheese, but increased competition in the dairy section would also help drive prices down, a welcome relief given current economic challenges.
In the past decade, Canada has ratified trade agreements such as CUSMA, CETA, and CPTPP, all of which entailed breaches in our supply management regime. Despite initial concerns from farmers, particularly regarding the impact on poultry, eggs, and dairy, these sectors have fared well. A dairy farm in Ontario recently sold for a staggering $21.5 million in Oxford County. Claims of losses resulting from increased market access are often unfounded, as farmer boards simply adjust quotas when producers exit the industry.
In essence, Bill C-282 represents a misguided initiative driven by farmer boards capitalizing on the ignorance of urban residents and politicians regarding rural realities. Embracing further protectionism will not only harm consumers yearning for more competition at the grocery store but also impede the growth opportunities of various agricultural sectors striving to compete globally and stifle the expansion prospects of non-agricultural sectors seeking increased market access.
Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.
From StosselTV
Activists have a new goal: “DEgrowth.”
They say “growth is killing us.” They couldn’t be MORE wrong.
“Growth is not killing us. It’s saving us!” says author Johan Norberg. He explains why growth is essential to human progress, especially for poor people. “In poor countries, if you manage to grow by 4% annually over 20 years,” he points out, “that reduces poverty in that country on average by 80%.
But DEgrowth activists insist that growth means “climate chaos.” They say a smaller economy would be “sweeter.” They say “We must urgently dismantle capitalism!” It’s destructive nonsense. This video explains why.
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After 40+ years of reporting, I now understand the importance of limited government and personal freedom.
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Libertarian journalist John Stossel created Stossel TV to explain liberty and free markets to young people.
Prior to Stossel TV he hosted a show on Fox Business and co-anchored ABC’s primetime newsmagazine show, 20/20. Stossel’s economic programs have been adapted into teaching kits by a non-profit organization, “Stossel in the Classroom.” High school teachers in American public schools now use the videos to help educate their students on economics and economic freedom. They are seen by more than 12 million students every year.
Stossel has received 19 Emmy Awards and has been honored five times for excellence in consumer reporting by the National Press Club.
Other honors include the George Polk Award for Outstanding Local Reporting and the George Foster Peabody Award.
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