No one has any accurate idea of what is coming down the pipe for rural Canada. You will notice I didn't say for agriculture. The only thing we can say for sure is that there will continue to be rapid change in what happens. Today, I would like to address a few of the challenges everyone faces and suggest some of the opportunities that are emerging. Doug Powell will open this meeting with examples of how Government policies and actions are based, in many instances, on public perceptions which are generated by numerous special interest groups who use the media to sway the opinions of the ninety five percent of the population which resides in urban Canada.
Canadian food and fibre producers or farmers and ranchers are the most innovative and progressive adapters of technology that I know of. Consider the following paradigm shifts, which have occurred in my lifetime in Western Canada. These include adoption of:
As a result of the application of these and other technologies; management practices and production inputs; farmers and ranchers can be proud to point out that:
In today's media and the urban population, farmers must be seen as innovators and responsible stewards of the country's natural resources and land, by the general public.
I was once asked the Peter Druker question "What business are you in?" by a foreign visitor. I thought I was in the cattle business but on closer study, I found I was in forage management! As a result, our management and thinking changed dramatically in that I thought of myself, not as a cattleman, but a forage producer who marketed forage via a self-propelled bioreactor called a cow!
Saskatchewan has been in the middle of one of the greatest soil management revolutions since the plow! When the prairies were first broken up, the high organic matter content of grassland soils was responsible for phenomenal yields - if it rained. The dust bowl of the thirties caused a major migration of settlers northward from the prairies as our prairie soil moved out on the wind! In the seventies, many farmers started to look at alternative means of sustainable cropping. The era of minimum or no till had arrived. The machinery and other developments required didn't come from elsewhere. They came from farm and local welding shops. Names like Noble, Frigstadd, Morris, Flexicoil and Bougault are among those with worldwide recognition.
In many minimum till farming operations, the goal is three or four passes each year. A pre-emergent burn off with Roundup; one pass with an air seeder calibrated to deliver seed, inoculant and fertilizer; an area specific pass with a remote controlled sprayer for weed control; and harvest with a straight cut header. Since there is no "recreation tillage," fuel consumption is reduced dramatically, biomass production increased and carbon added to the soil as organic matter increases and more efficient use of moisture is obtained.
My position is that farmers and ranchers facilitate the conversion of water, sunlight and soil nutrients to produce marketable biomass. Producers have traditionally produced commodities to sell instead of producing what wells!
New food/fibre production and processing technologies open up food/fibre chains for the marketing of new products that sell in the era of "Entertainment Foods"!
We must take an environmental scan of the domestic and export market. Consumers are now driving the market in a manner that we haven't seen before. Governments are being forced to shift from traditional regulatory mechanisms to market based incentives to address environmental problems. Agri environment policies, as perceived by the public, are focused on BSE, foot and mouth disease, water and food safety, climate change, etc. As a result, we are witnessing a fundamental shift in the global agri-food policy due to:
An interesting coalition of well-fed consumers have banded together to focus on Genetically Modified Organisms (GMO) and have made "dramatic" statements about their safety to consumers and the effect on the environment.
The media looking for a story to sell, authors looking to sell books, environmental groups looking to raise money and proponents of "natural products" who wish to sell more product all have taken on Big Agribusiness, profits and Government regulatory effectiveness for their own causes.
The farmer is left wondering if there is a future for efficient, environmentally sustainable production of food and fibre. Animals and plants have been "genetically modified" since Bakewell formed a pedigree herd of cattle, new varieties of wheat incorporated rust resistance genes and oil seed rape was genetically modified to create Canola!
I look at the source of products on the protein counter in a food store. Competition for the consumer dollar spent on protein includes dairy products, red meats, white meats, soy-veggie products, modified plant proteins, and full meal solutions.
The white meat industry has been an aggressive and innovative protein product leader in the last twenty years. The global success in the chicken industry is in part due to the following:
However, the pork and beef industries have finally woke up to the increasing market share the poultry industry is taking and are developing their own aggressive approach on the protein counter. The winner may be the most cost-effective protein source with the best flavor that fits life style and entertainment needs and reflects who is the best marketer. The impact on the crop sector is more local demand for cereals, pulses and oil meal.
I would like to briefly offer some "food for thought" which represent challenges and opportunities for farmers under four major areas:
SOCIAL ISSUES:
SAFETY ISSUES:
CONSUMER ISSUES:
OPPORTUNITIES FOR NEW PRODUCTS:
We are now in an era in which the "consumer shakes hands with the citizen." Let me give you an illustration of what I mean. When my grandparents came to Alberta in the late 1800's they sold eggs, butter, cream and chickens at the local market on a weekly basis. If their produce was not up to expectations, they heard about it the next week! Consumers identified with their suppliers who lived in a mutually supportive frontier community. In the last fifty years, demography has changed and today few consumers meet the producer or know the circumstances of those people who produce their food.
Food comes from the supermarket or fast food shop! Safety, consistent quality, value and variety are demanded regardless of the impact on producer, processor or provider.
No one seems to want to take responsibility for their own actions with regard to food safety or diet! We as producers and processors have not helped by consistently talking to ourselves rather than the other 96% of the population. Until recently, few producer groups have targeted the urban population with a factual message about food safety, quality or value. The publication of "Food for Thought" by the Alberta Ag-Food Council/Growing Alberta is a first step in that direction. The problem is "PERCEPTIONS ARE REAL WHILE FACTS ARE NEGOTIABLE" in the 10 second television clip world in which we live.
Agribusiness is changing from being primarily a commodity business to one, which is a combination of commodity, and value-added technology driven food chain products. The food fibre industry has adopted new production technologies over the last century. As a result, producers are producing more with less energy inputs through the use of minimum tillage and other technologies.
The more extensive use of GPS-GIS systems open up new opportunities for special fertilizer or plant nutrient formulations for both extensive and intensive crop production as production management more closely matches geographical variation in soil and water profiles. In combination with biotechnology processes and products, the prospect of more functional food production for niche markets and higher productivity per land base unit become an option for some farmers.
The North American consumer market is changing in demographics and lifestyle patterns. Consumers are buying time through increased demand for convenience foods, which meet their perceptions for safety and nutrition. The market consists of a week day convenience or "meal solution" demand and a weekend "special family cooking event" featuring fresh products and produce. The weekend market demands high quality, fresh "verified production products" which may include organically grown produce to meet perceived health benefits.
In an era where consumers spend twice as much on entertainment as on basic food requirements, the agri-food industry must produce what sells. Major new markets for "entertainment foods" are developing. All segments of the agri-food industry must be more proactive in telling their story. They must tell the world that food producers and marketers are responsible stewards of our environment and provide consumers access to a safe, convenient variety of quality foods at a reasonable cost.