Book 2 — Hot issues: minister's transition book 2025, AAFC

• I’m honoured to have been asked by the Prime Minister to serve as the Minister for Canada’s dynamic agriculture and agri-food sector.
• Canada’s hard-working producers and processors play a vital role in growing our economy, protecting the environment, and producing high-quality and nutritious food.
  • They are at the front lines of a changing climate, contending with the droughts, floods, and fires happening across the country. And now they are also contending with difficult times on the trade front.
• I look forward to getting briefed by my new officials at Agriculture and Agri-Food Canada (AAFC) and working with them and all our partners to support this important industry.
• I am eager to meet with stakeholders and my provincial and territorial counterparts to discuss the challenges and opportunities facing the sector.
• The Government of Canada is committed to achieving meaningful reconciliation with First Nations, Inuit and Métis Peoples. Addressing the profound systemic inequities and disparities and eliminating systemic barriers facing Indigenous Peoples is at the forefront of advancing self-determination and supporting Indigenous-led participation in the agriculture and agri-food sector is of vital importance.

Hot issues (as of March 10, 2025)

Canada–United States trade

• The Government of Canada will always stand shoulder-to-shoulder with our farmers, producers and workers who export the finest products in the world.
  • Canada and the United States (U.S.) are important trade partners for agri-food and seafood, with bilateral trade in these areas reaching $101 billion (CAD) in 2024.
• 28 states count Canada as their top agriculture and agri-food export market.
• The Canada–United States–Mexico Agreement (CUSMA or “USMCA” in the U.S.) has been the most successful trade agreement in the world with over $2 trillion in trade flowing between Canada, United States and Mexico every year.
• U.S. tariffs impact Canadians and Americans alike. They increase costs for consumers, put thousands of jobs at risk, and weaken North America’s competitiveness in the global economy.

Canada-China trade

• China recently concluded its domestic ‘anti-discrimination’ investigation that it launched against Canada on September 26, 2024. The investigation resulted in the announcement of unjustified tariffs on Canadian canola oil and meal, peas, fish, seafood and pork products and is scheduled to enter into force on March 20, 2025.
• Canada does not accept the premise of China’s investigation, nor its findings. We are deeply disappointed with China’s announced measures.
• As a trading partner, Canada has demonstrated a commitment to ensuring a level playing field for Canadian businesses, and support for fair, rules-based trade. This includes addressing China’s non-market policies and practices that artificially lower production costs and distort markets.
• Canada remains open to engaging in constructive dialogue with Chinese officials to address our respective trade concerns.

Trade, market access and market development

• The Government of Canada is committed to supporting the agriculture and agri-food sector to strengthen its resilience in the face of global and domestic economic challenges, reach new markets, drive economic growth and competitiveness, and maintain the reputation as a reliable supplier of world-class products.
• Exports of agriculture and agri-food and fish and seafood products continue to grow, worth nearly $99.1 billion in 2023 compared to almost $93 billion in 2022.
• Canada has 15 Free Trade Agreements, covering 51 countries, giving Canadian farmers a competitive edge in over 60% of the global economy.
• I look forward to helping the sector increase agriculture and agri-food exports by establishing new markets for Canadian agriculture and food in the Indo-Pacific region, with the support of Canada's new Indo-Pacific Agriculture and Agri-Food Office, located in the Philippines.
• International trade is vitally important to the livelihoods of farmers across Canada, and I am looking forward to working with our provincial and territorial partners to continue exploring innovative ways to improve trading relationships for the food sector.

Extreme weather

• Canadian producers and ranchers are on the front lines of climate change and when extreme weather strikes — such as wildfires/droughts/flooding — it directly affects their bottom line and has a significant impact on production. Adapting to climate change is vital to ensuring the sustainability of Canada’s agriculture and food sectors.

Support to farmers

• The Government of Canada is committed to supporting Canadian farmers, ranchers, and processors and provides programs and resources that strengthen their businesses, drive innovation, and promote sustainability in the agriculture sector.
• The Sustainable Canadian Agricultural Partnership is a $3.5-billion, 5-year agreement (April 1, 2023, to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector.
  • The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments.
• Our business risk management (BRM) programs are the tools that provide agricultural producers with protection against income and production losses, helping them manage risks that threaten the viability of their farms.

Highly pathogenic avian influenza (HPAI)

• The Canadian Food Inspection Agency (CFIA) is responding to the presence of highly pathogenic avian influenza (HPAI) in small flocks and commercial and non-commercial farms with birds across Canada.
• The typical response to avoid further spread of the HPAI includes movement restrictions and quarantines, investigations, depopulation, a thorough cleaning and disinfection of the infected premises, and surveillance activities.

African swine fever

• Preventing and preparing for foreign animal diseases such as African swine fever (ASF) is a shared concern. The federal, provincial and territorial governments, and industry each have responsibilities to prevent and prepare for ASF, and respond to any potential outbreak.
• The Government of Canada is fully engaged: both by working to prevent an ASF outbreak while also preparing for the possibility of cases of the virus in Canada or the United States, and by minimizing the impact on market access to Canada’s pigs and pork products.

Foot and mouth disease/livestock traceability/animal disease

• The Government of Canada is committed to protecting animal health and preventing the introduction and spread of animal diseases and continues to make strategic investments to bolster mitigation and preparedness efforts to protect the livestock industry and the vitality of rural communities.
• Preventing and preparing for foreign animal diseases is a shared responsibility between federal, provincial, and territorial governments and industry.

Sustainable Agriculture Strategy

• Canadian farmers are facing increased pressure to feed Canada and the world in a manner that is environmentally responsible and allows famers to make a good living, all within the context of a changing climate.
• The Sustainable Agriculture Strategy (SAS) will provide a long-term approach to address these challenges and will recognize the environmental achievements producers have already attained while increasing production.
• The Strategy will help prioritize areas where more investment, innovation, and partnerships are needed to advance the sustainability of Canada’s agriculture sector.
• The Government of Canada is grateful for the significant contributions made by members of the SAS Advisory Committee, including; producers, commodity organizations, non-governmental organizations, provincial and territorial partners, Indigenous Peoples, and others. This input is critical to support the finalization of the strategy.

Crop protection and the Pest Management Regulatory Agency

• The Government of Canada takes pesticide safety very seriously and is committed to protecting the health of humans and the environment, including wildlife.
• To be used in Canada, a pesticide must undergo a highly regulated, science-based risk assessment to ensure that it meets Health Canada’s human health and environment protection requirements.
• We recognize the importance of crop protection products and we are actively working with provinces and territories to help farmers overcome the challenges associated with pest control.

Supply management

• The Government of Canada recognizes that the agricultural supply management system provides farmers and producers with the opportunity to receive fair returns on their labour and investments, which in turn allows consumers to benefit from a steady supply of high-quality products.
• Supply-managed sectors are an integral part of the success of Canadian agriculture and important contributors to our domestic economy and the vitality of Canadian farming and rural communities.
• As the landscape of Canada’s rural economies shift and evolve, the Government of Canada will continue to support the development of strong supply management practices that will ensure the stability of rural economies and the creation of stable well-paying jobs.

Grocery Code of Conduct

• The Government of Canada believes that uniting all supply chain partners on the principles of fairness, transparency, and predictability will produce the best outcomes for the sector and all Canadians.
• The Grocery Sector Code of Conduct will play a major role in meeting our objective of improving the strength and resilience of Canada’s food supply chain.
• While not directly affecting food prices, the Code is expected to improve predictability, transparency, and the principles of fair dealing across the grocery supply chain, which will ultimately benefit consumers.
• The industry-led process has led to exceptional collaboration across the grocery supply chain.

If pressed: Grocery Code of Conduct Adjudication Office

• The Grocery Code Adjudication Office will be a voluntary, membership-based organization. The Office will help ensure the efficacy and relevance of the industry-led Grocery Code of Conduct, particularly as the industry continues to evolve.
• The ongoing participation of all major retailers in the industry-led Grocery Sector Code of Conduct is vital to the success of the Code in the long-term. The Adjudication Office will support streamlined implementation of the Code and will provide the sector with dispute resolution, education, and other services with the aim of increasing the resilience and fairness of the grocery supply chain.

Labour in the agricultural sector

• The agricultural workforce of the future needs the right mix of skills, youth, new entrants, and under-represented groups. There are dedicated programs that support the sector, including the Youth Employment and Skills Program and AgriDiversity Program.
• International workers will continue to be an important part of the agricultural workforce. For example, the Rural and Francophone Community Immigration Pilots offer permanent residence to workers who want to work and settle in rural and more remote communities.
• Agricultural employers are the heaviest user of the Temporary Foreign Worker Program, and the Government is also committed to strengthening the Program to improve worker health and safety while helping employers meet their workforce needs. Consultations on a new foreign labour program for agriculture and fish processing are currently underway.

Fertilizer emissions reduction

• The Government of Canada has set a national target to reduce emissions from fertilizer use by 30% below 2020 levels by 2030. AAFC is committed to working with farmers to grow the economy, spur innovation and identify opportunities to reduce emissions from fertilizer application without compromising yields.
• Canada’s fertilizer emissions reduction target does not represent a ban nor a mandatory reduction in fertilizer use. Reducing emissions while maintaining or enhancing yields and profitability is the goal.

Clean Fuel Regulations

• The Clean Fuel Regulations (CFR), led by Environment and Climate Change Canada (ECCC), will require gasoline and diesel to become less polluting over time and investments in a growing agricultural biofuel industry and clean technology sector. The CFR are not the same as carbon pollution pricing. They are a market-based mechanism designed to spur innovation of clean technologies and expand the use of less polluting fuels throughout the economy, including agriculture-based biofuels.
• The CFR will accelerate the production and use of low-carbon fuels, spurring demand for Canadian-grown grains, oilseeds, and animal by-products that can be turned into a low-carbon fuel used to power the Canadian economy. It will provide market stability and diversification and provide value-added opportunities here at home.
• Growing demand for biofuels across North America is driving investments in canola processing capacity in the Canadian Prairies, creating jobs and economic growth. For example, in the next few years, canola value added processing is projected to grow from 10 million tonnes to 16.7 million tonnes, a 65% increase. Canadian canola is helping to make fuels 15% less carbon intensive, while supporting the livelihoods of hardworking farmers.

Farmer mental health

• The Government of Canada recognizes that producers and their families face unique stressors that can take a toll on their mental health and is committed to working with provincial and territorial partners and industry to support initiatives that address the unique mental health challenges for farmers, ranchers and producers.
• The Government of Canada recognizes that this is a difficult time for many producers and that it can impact their mental health. There are a number of resources available to the agriculture sector in support of mental health, listed on AAFC’s website.

Issue

African swine fever (ASF) is a contagious and fatal disease for pigs that has had devastating impacts on hog markets in Asia, Africa, Europe and Central America. While ASF has not yet arrived in Canada or the United States (U.S.), a single positive case in Canada would immediately halt all pork and live-hog exports (70% of domestic production). This would have significant financial consequences for producers and processors as they grapple with lost markets and price declines driven by an oversupply of pork relative to domestic demand.

Context

In the event of an ASF outbreak in Canada, trading partners would cease imports from Canada on an indeterminate basis, thus halting exports of live hogs and pork. Exports would be unlikely to resume for months, potentially years.

Canada’s hog sector is highly export dependent; roughly 70% of total production (live pigs and pork products) is exported. In 2024, Canada exported 6.8 million hogs and 1.4 million tonnes of pork, which had a combined value of $6.3 billion. In 2023, 18.7% of Canada’s pork production was exported to the U.S. and an estimated 37.4% of Canada’s total hog production (live animals and pork products) was exported to the U.S.

Animal welfare issues due to overcrowding, production bottlenecks, and access to feed would become increasingly problematic in the first few weeks following the loss of export markets due to the “just in time delivery” nature of the industry’s production structure. Approximately 50% of the national herd (roughly 7 million hogs) would need to be depopulated. However, industry sees this as a last resort, hoping rather to see our trading partners reopen borders quickly to allow for a resumption of trade.

Current status

Federal, Provincial and Territorial (FPT) governments and industry have been advancing the Pan-Canadian ASF Action Plan, led by Animal Health Canada (AHC), by collaborating and prioritizing ASF-related prevention and preparedness efforts. The Action Plan has 4 key pillars:

1. Prevention and Enhanced Biosecurity;
2. Preparedness Planning;
3. Ensuring Business Continuity; and,
4. Coordinated Risk Communications.

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[REDACTED] An Order in Council was approved that enables AAFC to enter into agreements with PTs and provides up to $567.16 million to assist hog producers with extraordinary costs of depopulating and disposing of surplus hogs upon key export market closures due to an ASF outbreak.

Upcoming priorities

AAFC will enter into SHMP contribution agreement discussions with each province, with a 60:40 cost-share.

The current FPT government and industry workplan includes continuing to address outstanding gaps and work towards advancing the Pan-Canadian ASF Action Plan. [REDACTED]

Related programs/initiatives

In August 2022, the Government of Canada announced an investment of up to $45.3 million to enhance efforts to prevent ASF from entering Canada and prepare for a potential outbreak. Of this amount, $23.4 million is dedicated to AAFC to support industry’s prevention and mitigation efforts through the African Swine Fever Industry Preparedness Program (ASFIPP). The 3-year program was launched on November 16, 2022 and is coming to an end on March 31, 2025. Another $19.8 million has supported the Canadian Food Inspection Agency’s surveillance and international activities, while the remaining $2.1 million has enhanced the Canada Border Services Agency’s border control activities.

To date, AAFC has approved 44 ASFIPP projects for up to $15.5 million spanning 5 priority areas, including biosecurity assessment and improvement, sector analysis and engagement, research projects, processor retrofits and regional preparedness for welfare slaughter and disposal of surplus healthy hogs. A total of 13 projects have been completed and have had a significant positive impact on ASF preparedness and mitigation across the country.

The Canadian Food Inspection Agency has proactively negotiated zoning arrangements with the U.S., European Union, Singapore, Vietnam and Hong Kong, which covers 29.6% of Canada’s pork exports by volume (2024). Zoning arrangements with trading partners allow for trade to continue from disease-free areas but also require the trading partner to recognize the zones, which can take time and may depend on the nature of the outbreak, including the ability to control disease transmission.

Issue

H5N1 is a strain of avian influenza (or bird flu), a contagious viral infection that causes a highly infectious respiratory disease in birds. The virus is classified as highly pathogenic avian influenza (HPAI), based on the severity of illness caused in birds. It has recently been detected in dairy cows and humans in North America, raising concerns about cross-species transmission and public health.

Avian influenza outbreaks can result in significant losses for the sector due to culling of birds on affected farms, trade restrictions, and economic disruptions.

Context

In 2023, Canada’s poultry and egg sector generated $6.8 billion in production value, accounting for 6.9% of total farm cash receipts.

Since its introduction in 2021, H5N1 has affected commercial poultry and backyard flocks in 9 provinces, leading to the culling of nearly 14 million birds across Canada on 525 premises.

H5N1 primarily targets poultry but can infect mammals and humans, including hundreds of cases reported in United States (U.S.) dairy cattle across 15 different states, several U.S. farm workers and a Canadian teen, thus heightening concerns about cross-species transmission.

The Canadian Food Inspection Agency (CFIA) is responsible for surveillance, and emergency preparedness and response for H5N1.

Current status

As of February 26, 2025, there are 31 infected farms in Canada (Alberta, British Columbia, Newfoundland and Labrador, Ontario, Quebec), of which 19 are in the Abbotsford area in British Columbia.

In November 2024, a Canadian teenager in British Columbia was hospitalized with H5N1. This was the first human case confirmed in Canada. The individual was admitted to the hospital on November 8 and remained in critical condition for several weeks before fully recovering.

There have been no reported cases in Canadian dairy cattle and no evidence of H5N1 in Canadian milk samples.

Public Health Agency of Canada (PHAC), CFIA, provincial and territorial governments, local public health and animal health authorities are actively monitoring and collaborating on the domestic and global avian influenza situation.

According to PHAC, the likelihood of H5N1 infection for the general population remains low.

As of March 2025, the U.S. is shifting to vaccination primarily for economic reasons, aiming to quickly stabilize soaring egg prices and supply shortages. Their poultry sector has been more severely impacted by H5N1 than Canada’s, prompting an urgent policy shift.

Although the CFIA is analyzing the feasibility of vaccination domestically, the Agency is currently prioritizing disease surveillance, outbreak detection, strengthened biosecurity measures, and rapid response protocols to contain the virus without widespread vaccination.

Upcoming priorities

Enhance surveillance and response protocols for emerging H5N1 cases in avian and non-avian species, ensuring alignment with One Health principles (CFIA).

On February 10, 2025, CFIA launched a second communications campaign aimed at raising biosecurity awareness.

AAFC will continue monitoring the situation and stay involved with CFIA (and provinces, at their discretion) on this issue.

Related programs/initiatives

Some provinces have used Sustainable CAP funding to support communication campaigns designed to raise biosecurity awareness among small flock owners, with the goal of encouraging them to adopt stronger biosecurity practices.

Canadian Notifiable Avian Influenza Surveillance System (CanNAISS): Program to prevent, detect and eliminate the presence of H5 and H7 subtypes of notifiable avian influenza in Canada's domestic poultry flocks (CFIA and industry).

Wild bird surveillance through the Canadian Cooperative Wildlife Health Centre, in partnership with PHAC and CFIA.

Issue

The Sustainable Agriculture Strategy (SAS) is a coordinated federal initiative to establish a long-term vision and strategic approach to driving environmental action in the agriculture sector, while ensuring competitiveness and vitality over the longer-term. SAS aims to support farmers in being more resilient to climate change impacts over the long term, contributing to a steady, predictable and affordable supply of quality food for Canada for generations to come.

Context

The SAS is a long-term approach (to 2050) to improving environmental performance in the sector and supporting its competitiveness and vitality.

It will focus on 5 priority areas: soil health, climate adaptation and resilience, water, climate change mitigation, and biodiversity.

The SAS was intended to respond to the 2021 Mandate Letter, which directed the Minister of Agriculture and Agri-Food to increase support to farmers to develop and adopt agricultural management practices to reduce emissions, store carbon in healthy soil and enhance resiliency. Following extensive consultations, a SAS What We Heard Report was published.

The SAS Advisory Committee (SAS AC) was established with key producer associations, environmental organizations, and an Indigenous partner who met bi-weekly in 2023, and monthly until June 2024, dedicating significant time and effort to provide input and feedback into the development of the Strategy.

The SAS has been designed as an evergreen strategy to 2050. Subsequent versions can be adapted to advance the scale of ambition and scope to reach the long-term vision and goals (for example, including whole supply chain).

Considerations

Even though the SAS AC sunset in June 2024, meetings continued with AC members on an ad-hoc basis. In December 2024, multiple stakeholders withdrew their respective organizations from participation on the SAS AC: Canadian Canola Growers Association, Canola Council of Canada, Cereals Canada, Grain Growers of Canada, Pulse Canada, and Soy Canada, followed by Canadian Cattle Association and Fertilizer Canada. [REDACTED]

AAFC has publicly said it would release the SAS in 2024. SAS AC members consistently noted that without accompanying federal financial support, producers would not be motivated to achieve the goals of the SAS.

Communications and messaging on the benefits of the SAS to the sector will need to be considered carefully to support its release.

Current status

A revised version of the SAS was shared with the SAS AC in November 2024. Comments were incorporated. A release date has not been set, pending direction.

At this time, there is no funding available to support the release of the Strategy.

Upcoming priorities

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Related programs/initiatives

Since 2021, $1.5 billion in investments have been allocated to environment and climate programming, including through the following programs:

• Agriculture Climate Solutions (ACS): On-Farm Climate Action Fund (OFCAF)
• ACS Living Labs
• Agricultural Clean Technologies (ACT)
• Resilient Agricultural Landscape Program (RALP) – part of Sustainable Canadian Agricultural Partnership

Federal actions and funding [REDACTED] would support the agriculture sector’s contributions to national and international commitments, including:

• Fertilizer Emissions Reduction Target
• Emissions Reduction Plan (ERP)
• National Adaptation Strategy (NAS)
• Strategic Conservation Framework for Species at Risk – Agriculture Sector (AgSAR)
• Freshwater Action Plan and Canada Water Agency
• Global Biodiversity Framework (GBF) and National Biodiversity Strategy and Action Plan
• Global Methane Pledge

Issue

Recent consultations with key red meat industry stakeholders, including several establishments that conduct slaughter in accordance with Judaic or Islamic law, have highlighted a need for productivity enhancements within the Canadian kosher and halal red meat sectors.

In particular, some Jewish community members have expressed concerns over the viability of kosher slaughter of beef and veal in Canada.

AAFC and the Canadian Food Inspection Agency (CFIA) have been exploring support options to enhance the productivity of kosher and halal slaughter in Canada.

Context

For some members of Jewish and Muslim communities in Canada, adherence to their respective dietary laws is a fundamental aspect of their faith.

There are 6 federally licensed slaughter establishments that can conduct kosher slaughter of beef and veal, 3 of which are currently active. Of the federally licensed beef and veal slaughter establishments, 13 are actively engaged in halal slaughter, including the 3 engaged in kosher slaughter.

In addition to the Safe Food for Canadians Regulations (SFCR), establishments conducting kosher or halal slaughter are also subject to the rules and guidelines of the Jewish and Islamic certifying bodies overseeing their ritual slaughter operations. Due to these additional requirements, there are inherent inefficiencies that can impact kosher and halal red meat productivity.

Current status

AAFC and CFIA collaborated in exploring support options, including potential programming, that could assist the Canadian red meat sector in mitigating challenges inherent in slaughter in accordance with Judaic and Islamic law.

Following consultations with stakeholders, AAFC and CFIA obtained the following authorities to support the kosher and halal sectors:

• AAFC: $29 million over 3 years, starting in 2025-26, to existing AAFC programs to support the viability and productivity of slaughter in accordance with kosher and halal practices, with priority given to the kosher sector.
• CFIA: $3.2 million over 2 years, starting in 2024-25, and $1.6 million ongoing, to establish a modernized and responsive training plan for inspection staff and support slaughter establishments in complying with regulatory requirements and interpretation of CFIA guidelines.

A Treasury Board submission was approved on March 6, 2025.

Legal challenges

A case against the Crown was brought forward by certain members and representatives of Canada’s Jewish communities, who filed an application for judicial review of CFIA’s regulatory approach in Federal Court on March 8, 2024.

The Applicants claim that the requirement to ensure that animals are unconscious by assessing certain indicators, per CFIA’s Guidelines for ritual slaughter of food animals without pre-slaughter stunning, reduces slaughter establishment line speed to the point that it becomes uneconomical, thus impeding their ability to practice kosher slaughter.

On July 24, 2024, an interlocutory injunction was granted, ordering the CFIA to refrain from enforcing its Guidelines, issue non-compliance or require corrective action, for the sole reason that a license holder has failed to apply any of the 3 indicators of unconsciousness, until a final decision is rendered on the merits of the Application. The CFIA may enforce section 134 of the SFCR by using any other method historically used to assess compliance, and ensure animal welfare. The case is still ongoing.

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