Thread by @johnsonthree

Good morning #cdnag from #AGRI committee where we're holding an emergency meeting on the canola situation. First panel includes @ccga_ca, the @canolacouncil, Richardson International and Viterra. The room is full. #cdnpoli

Rick White says cash flow is top of mind for canola farmers. He says the feds need to look at increasing the APP limit beyond the $400,000 maximum.

"We have been asking for this change for quite a few years now and now is the time to do it," he says.

"Government leadership is critical," White concludes if a resolution is to be found.

Jim Everson is up next. He's from the Canola Council of Canada. #cdnag

Forgive me #cdnag if tweets are a little intermittent this morning. I'm juggling a few different files. So please bear with me. :)

If you're just getting into the canola beat now, here's an explainer on the issue:

ipolitics.ca/2019/03/28/can…

Jim Everson says the council is "perplexed" China's actions and allegations around pest contamination. He says the industry only grows canola varieties that have been approved in other markets.

"Our industry takes quality concerns based on science very seriously," he says.

Everson says the industry is confident about the quality of canola Canada grows and exports.

Richardson International is up next. #cdnag

We're having technical difficulties. Committee temporarily suspended.

And we're back. Curt Vossen from Richardson is resuming his remarks. He says it will not be easy to find alternative markets for Canadian canola.

Meeting will likely run a little longer since we had to suspend, Chair said just before we started.

If you are wondering about the cash flow issues mentioned earlier, this story has more details.

ipolitics.ca/2019/04/02/far…

Richardson thanks the government for its staid attention to this issue. It asks the government to put as many resources as possible on the file.

Viterra is up next. They're coming via video-conference from Regina.

Viterra says China is an important market and it buys other commodities in addition to canola.

"The decision is having a profound impact on our industry and will continue to have ... an impact" as it continues, Viterra says.

"We're working to manage the disruptions." #cdnag

Also working with the railways.

"As a company and as an interest we take very high pride and very serious in a sound and science-based approach to its product." It's what makes Canada's canola safe and preferred by buyers around the world. #cdnag

Canada needs to continue to push for a science-based resolution. Government of Canada and China need to be communicating at the "highest levels" to try and resolve the dispute.

"We need to work together and act swiftly to restore access to this very important market." #cdnag

That concludes opening remarks. Time for questions!

Conservative Luc Berthold is up first. #cdnag

Starts by saying he wishes the ministers were here. He also repeats the fact Conservative asked for this meeting weeks ago.

First question is has something like this happened before around canola?

Richardson says no. Also, normally there is a "protocol, a standard approach"

"The frustration, here of course, is that there has been limited follow-up ... front the regulatory authorities in China" about their concerns around canola.

"I think we do have to, as a country, deal with this claims ... with their agencies and lay that issue to rest." #cdnag

Next question is what happens if we don't find a fix soon.

Viterra says there are two issues: short-term and longterm. The entire pipeline is affected when the grain that was supposed to go to China can't move.

Cash-flow, markets, price drops are all short-term urgent matters

Next question is from Liberal MP Lloyd Longfield.

He mentions the trade committee meeting this afternoon. (I'll be there too!)

He asks about SPS concerns. Richardson says "it's rare." Samples are taken at loading. It's analyzed before the boat leaves.

"This a very unique, unusual circumstance."

Viterra says they have never had an SPS issue related to canola.

China is one destination amongst many, Richardson says. "We have not seen a problem in canola to any other destination."

"You've got an entire industry under warning and two companies under restriction."

Viterra says the Chinese also have pointed to the loading process itself

Richardson says the current dispute shows "the damage" that can be done because of non-tariff trade barriers.

"What we do need is certainty in the markets." Need to make sure non-tariffs do not become wide-spread.

Is there any appeal process for something like this?

Jim Everson says SPS is much more complicated. "Our trade commissioners need to be very well-suited to that kind of market access issue."

It's not like tariffs, where the tariff is there or not.

Next question is from NDP MP @AMacGregor4CML

Richardson says the fact CFIA was the one who told them that they had a problem "was indeed quite a surprise to us."

Rick White is asked about the canola currently in the system. Asked about storage concerns and how long can the canola sit in the bins.

Risk is an "abnormal" size carry-out. It's expected about 20 MT of canola will be grown this year. #cndag

MacGregor asks about Canada's trade deficit with China.

Everson says the signal the Chinese embassy put out this weekend that they're willing to talk about technicalities is "positive." He says he expects the delegation Canada offers to send will be accepted.

Francis Drouin, Liberal MP, asks about crop-rotation. Conservatives acknowledge "that's a good question."

Right now farmer are planting 1/3 canola, 2/3 other crops (wheat, barley, etc.) There are agronomic reasons to do that this year and there are agronomic reasons to maintain

"Cash flow is going to bite them first." Canola, White says, is the money maker. If APP is increased, it would "buy some time."

Next question from Drouin is when do farmers get paid. White says they typically get paid at delivery. Don't get paid if it's sitting on-farm.

Drouin: "How quickly can the industry turn the product around to add-value or find new markets."

China, Everson says, is bigger than the next three markets for canola seed. Hands it off to Richardson and Viterra.

Richardon says "there's opportunity." #cdnag

Dear #cdnag, *Please forgive the typos!*

Richardson, not Richardon.

Viterra talks about canola crush facilities. Most of the seed going into China is going to canola crush plants.

Diversification requires lots of thinking, infrastructure etc. It's more a medium-longterm strategy, rather than a short term fix. #cdnag

Liberal MP Pierre Breton is up next. He asks how the scientific approach could help resolve the current situation. #cdnag

Viterra: If you don't have sound, backed science, you're dealing with possible perception issues.

Entire system is based on science. It's "a fundamental cornerstone" of Canada's agriculture industry and how it deals with parties like China. #cdnag

Scientific methods are proven, they're reliable, Viterra says.

We should be using our system, "that we're proud of" to defend the industry when it is needed. #cdnag

Richardson says the agriculture industry operates on contracts. That needs to be upheld.

Otherwise, the market will be thrown into uncertainty. "We believe it isn't quality." Richardson says, but need to get that issue out of the way before officials can move on to other issues

Luc Berthold asks to give Mr. Erin Weir a chance to ask a question. We have a second round of questions. Weir will get a chance to ask a question at the end of this round.

@earl_dreeshen is up next. #cdnag

Dreeshen adds there is also a quality inspection when the farmer delivers to the elevator.

'What are you hearing from producers, from the farmer, as far as their frustrations about what is taking place." #cdnag

White: "They are very, very concerned." They know that this is "a risk they cannot manage."

"You feel the tone on the phone is very much worried. I can't express how difficult it is for some of the farmers out there." They're wondering what to do and they don't know. #cdnag

Richardson says canola acres didn't grow to 22MT, 23MT for no reason.

Canola has been a good crop to move. It's a good crop in terms of its "overall prospects."

"The feeling we get from our people in the country could lead to a scaling back of acreage in Western Canada"#cdnag

Viterra says there's lots of confusion about what the sit. means among farmers. Confusion about how long this could take.

"I think there's a lot that are maybe assuming the worst-cased scenario if this extends." Frustration, deep concern, "What will this mean? What will I do?"

Dreeshen mentions how there are other groups who will pile on to other trade issues to make points about agriculture.

He's talking about vegan activists, anti-GMO groups, etc.

Erin Weir gets a question. He's from Sask. #cdnag

He wants to know what is the single thing industry needs from the government. Is it upping the loan? or increasing the interest-free portion.

White says increasing the limit should be expanded to at least $800,000. Sask has suggested $1M. "Any of those numbers will work."

This is what the APP is designed for. $116M went out the door yesterday,

"They're going to hit the lid on it." White says.

That ends the first panel. CFIA, etc. up next.

There were 1,236 request for APP advances yesterday. For $116 million.

And we're back. Next panel is Fred Gorrell from AAFC.

Gorrell has earned much praise from former agriculture minister @GerryRitzxMP for his role in the resolving past canola trade disputes with China. #cdnag

Gorrell confirms Chinese officials notified CFIA in January they had detected pests in a Canadian shipment and that Canadian companies had been put on a watch list.

CFIA undertook additional testing. All affected companies were contacted by AAFC.

Gorrell is going through the full timeline. I'm trying to keep up.

There's been calls and letters between CFIA about the Chinese dispute.

Gorrell says CFIA has reanalyzed the samples. Got the same negative result #cdnag

There have been two technical calls. There have been letters sent. Today a CFIA official had a meeting with their Chinese counterpart on the sidelines of a meeting on plant health.

There are two letters. There's a letter from the minister to her counterpart. There's also a letter from the President of the CFIA to her counterpart in China. #cdnag

"I think the next step and the only real next step is to be face-to-face after everything in order to really clarify the interpretation." Gorrell says.

Berthold wants to know if CFIA is 100 per cent sure about its test findings. He says "Yes."

"I have strong confidence"

I looked down to eat a snack ... and now there is a motion from the Conservatives.

Sounds like they want more meetings.

This is what happens when you snack and tweet at the same time, folks. #cdnag

Bear with me.

And there's another vote.

We're suspending.

The meeting is adjourned.