Because of collapsing farm exports from war-ravaged Ukraine, the Liberals should subsidize Canadian fertilizer production, the Commons agriculture committee has been told..Extraordinary measures are needed “given the urgency and severity of what we are collectively facing,” wrote MPs..“The committee recommends the Government of Canada ensure access to affordable fertilizer to maximize yield potential while also exploring ways to work with Canadian fertilizer producers to increase domestic production, including by encouraging and financially supporting the development of potential sources of domestically produced fertilizer to reduce Canada’s dependence on external suppliers,” wrote the committee..Blacklock's Reporter said witnesses testified war in Ukraine disrupted farm exports resulting in high prices for consumers in Canada..“Our assessment is Ukraine accounts for 10% of the world wheat market, 13% of the barley market, 15% of the maize market and over 50% of the world’s sunflower oil,” Maud Labat, trade counsellor with the Delegation of the European Union to Canada, told the agriculture committee June 6..“We estimate 49% of winter wheat, 38% of rye and 63% of corn to be harvested this summer is situated in zones that are at risk,” said Labat..“Between 20% and 30% of the areas under winter cereal, maize and sunflower seed production in Ukraine will either remain unharvested, or not be planted.”.Canada supplies 12% of the world’s fertilizer, by industry estimate. A lobbyist with Fertilizer Canada testified June 13 that increasing Canadian production would take time..“It is not like flipping a switch,” said Catherine King, vice-president of Fertilizer Canada. “There is a lot of complexity.”.Economists have warned of continuing high food prices here due to the disruption in global farm markets..“I actually don’t believe Canadians are fully aware of what is going on,” Professor Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University, testified at the Commons finance committee May 16..“We are really facing a global food security crisis. I don’t think Canada will run out of food but it will get pricier.”.“Are high food prices here to stay based on what you’re seeing now?” asked Liberal MP Heath MacDonald (Malpeque, PEI)..“Yes,” replied Charlebois. “We’re seeing a new normal. Prices won’t drop any time soon.”.Charlebois said grocery prices were driven in part by a fivefold increase in fertilizer costs over the past year..“Farmers need fertilizers to produce crops, but the market is controlled by a handful of very greedy multinationals who supply-manage their products to artificially boost fertilizer prices,” said Charlebois..“Some of these multinationals are actually right here in Canada.”
