(Longueuil) Food processors must plan a “plan B” to avoid reliving the disruptions in the production chain experienced by the poultry and pork sectors, argues Martin Caron, the new general president of the Union des producteurs agriculture (UPA).
Posted yesterday at 4:47 p.m.
The producers’ livelihood is largely dependent on two companies in a monopoly situation. In chicken, Exceldor and Olymel share 96% of processing capacity in Quebec. For pork, Olymel represents 80% of the sector.
However, the past year has been difficult for poultry farmers and pork producers. Labor disputes, labor shortages and the pandemic disrupted the activities of the two processors, which led to the euthanasia of some 800,000 birds by Exceldor and the achievement of a record threshold of pigs awaiting slaughter at Olymel in early January.
Producers, for their part, find themselves stuck when problems arise with their partner, underlines Mr. Caron who granted an interview to The Canadian Press to discuss the priorities of the UPA for the next year. “It’s because, for us, you’ll understand, production doesn’t stop overnight. »
The president, who succeeded Marcel Groleau last December, wants to meet the leaders of two companies in order to plan “together” contingency measures to manage other potential disruptions in the production chain.
“What’s plan B?” If there is a fire, if there is a strike. How do we turn around so that the animals are slaughtered and so that there is transformation that takes place. »
Mr. Caron wants to act “preventively” in order to prevent further production disruptions from occurring. He would like to discuss with the processors for contingency plans they already have and think about the possibility of adding elements to them.
“It’s to say if a situation arises: can we increase slaughter in another slaughterhouse, is it possible to go to Ontario or the United States? What are the options we have? That’s what you have to be able to mark. »
Olymel and Exceldor have a plan
At Exceldor, we say we are open to discussing with the UPA, but we specify that the company already has a contingency plan. “I confirm that we do not have our arms crossed and that we are in action”, reacts Gabrielle Fallu, spokesperson for the cooperative.
The unexpected is by nature unpredictable and often “out of our control”, explains Ms.me Had to. She cites the example of the federal delays in processing applications for temporary foreign workers who postponed the hiring of chicken catchers at a subcontractor. Exceldor subsequently picked up the pace to prevent the euthanization of 800,000 chickens in early January, but was unable to prevent it after five months of overdrive.
Exceldor has tried somehow to avoid this situation. “We sent letters to other processors inviting them to pick up our birds for free so they could process them. This call to all worked, there are transformers who answered the call. »
At Olymel, they also say they are tackling the production delays that have pushed the number of hogs waiting to be slaughtered to a record high. In an interview last week, the company’s first vice-president, Paul Beauchamp, pointed out that the company had, among other things, increased the salaries of its employees and that it had redirected 15,000 hogs from Ontario to plants outside Quebec to prioritize pork from Quebec producers.
Negotiation with the federal
In 2022, Mr. Caron will also have to represent the interests of farmers in the negotiations for the next Agricultural Policy Framework. The new federal-provincial agreement is to replace the Canadian Agricultural Partnership, which expires March 31, 2023.
The president of the UPA wants the assistance programs for farmers to be improved. “When we compare ourselves with the United States and Europe, we are really below the agricultural support that is given in other countries. »
Fiscal transfers received by US producers represent 8% of the total value of US agricultural production. This is twice as much as in Canada where they reach 4%, according to data published by the UPA during the last federal campaign last August. The association figures the funding gap at 2.6 billion.
Aid will have to take into account the impact of climate change on the activities of its members, he argues. “As we have seen, the late frosts in May caused problems for vineyards, apple growers and grain producers. You have to be able to get crop insurance that meets those needs. »
Labor shortage
The labor shortage is also an issue that concerns the agricultural industry. In this regard, the federal decision to increase the percentage of temporary foreign workers is “good news”, according to him.
Mr. Caron is concerned, however, about the “mobility” of temporary foreign workers who change jobs after being recruited by a farmer. The UPA had asked the federal government to allow worker mobility so that farms with different production cycles could share the same worker, according to their needs.
However, producers have reported that some foreign workers have chosen to work in other sectors, such as construction, for example.
“The producers had paid for the plane tickets and the fees to bring the worker in, but they had no recourse to say, ‘Look, I signed an agreement with you as a temporary foreign worker and there it is. what are the options, the costs incurred represent a major impact on my business”. »
Within the UPA, Mr. Caron also wants to encourage the presence of women in the organization. He also wants the UPA to be more present with young producers to ensure that they are well supported.