Deputy ministers’ briefing notes: Standing Committee on Public Accounts, March 1, 2022

Table of contents

  • Opening remarks

    DM Forbes

    Public Accounts Committee

    OAG Report — Canada’s Food System

    March 1, 2022 1100h

    5 minutes

    Thank you.

    I’m pleased to provide a few opening remarks about Agriculture and Agri-Food Canada’s response to the recommendations in the Auditor General’s report on Protecting Canada’s Food System.

    We welcome the findings of the report, which will help us better serve Canadians in future crises.

    During COVID-19, large swings in demand, labour shortages and closures put severe pressures on the food supply chain.

    Our objective as a Department was to do what we needed to keep the supply chain strong, by addressing pressure points as quickly as possible and making course corrections as needed.

    We drew on a strong foundation of existing programs and mechanisms to create new programs quickly.

    We engaged broadly and forged connections among stakeholders and partners across the food system. This included new partners, who were able to help deliver immediate program support for producers and other Canadians.

    Over the first several months of the pandemic, we were able to deploy a number of programs quickly to help famers and food processors to

    • maintain their cash flows and workforces;
    • keep their farms and facilities safe; and
    • manage supply chain disruptions.

    At the same time, we helped organizations working to address food insecurity to meet increased demand at a time when they had to reorient their operations due to closures and disruptions.

    Canada’s food systems were stressed during the pandemic, but in the end they proved to be resilient and adaptable.

    The government put in place a number of specific emergency programs, including:

    • Our $87-million Emergency Processing Fund helped companies across Canada to adapt health protocols, automate or modernize their facilities to manage COVID pressures.
    • our $50-million Surplus Food Rescue Program redistributed over seven million kilograms of food.
    • And our investments of $330 million under the Emergency Food Security Fund are helping to improve access to food and increase food supply for vulnerable Canadians during the pandemic.
    • So far, this funding has supported some 5,000 projects across the country have been funded, including over 1,000 projects supporting Indigenous communities and organizations.

    AAFC’s pandemic response gives us the opportunity to identify gaps so that we can develop more resilient and equitable food systems that better meet the needs of Canadians.

    To touch briefly on the Report’s key recommendations –

    We acknowledge the need for

    • national emergency preparedness and response planning for future crises with impacts across Canada’s food system; and
    • the need to integrate food security in our emergency planning.

    AAFC continues to strengthen our engagement with FPT and Indigenous partners and stakeholders to help Canada’s food systems prepare and respond to future crises.

    My department has committed to developing an action plan for engagement with FPT governments and stakeholders, including Indigenous groups, on emergency preparedness and response.

    We have already begun to strengthen key engagement mechanisms and departmental supports.

    For example, soon after the start of the pandemic, we brought together hundreds of stakeholders for regular roundtable calls.

    During the recent border blockades and protests, our Food Sector Network — and our new policy directorate – both helped us to connect quickly and effectively with industry and respond to issues as they arose.

    We will continue to learn from the lessons of the past two years -- and from the challenges faced by Canada’s food systems -- to make us better prepared for future emergencies.

    We also agree with the Report’s recommendation for greater fairness and transparency in program input and design.

    We are committed to delivering all programming -- including future emergency programming — with greater consistency, fairness, and transparency.

    Likewise, we’re committed to improving oversight controls and the development of performance measurements.

    Finally, we will reflect the diversity of Canadians, and the spectrum of social, economic, and environmental realities in future programming.

    And we will continue to improve how we measure and report on contributions towards sustainable development commitments and gender and diversity outcomes in all our future initiatives around food.

    Mr. Chair, as I said, we welcome the findings of the Auditor General’s Report.

    Thank you and I look forward to our discussion.

  • AAFC media lines/key messages

    OAG Report – Protecting Canada’s Food System – December 2021

    Report

    • Agriculture and Agri-Food Canada (AAFC) welcomes and accepts the findings of the OAG’s audit. We are committed to implementing this report’s findings in order to help strengthen Canada’s food supply chain alongside our government partners.

    Food chain

    • COVID-19 caused significant fluctuations in demand and an unprecedented shock in terms of how our supply chains function.
    • This is why the Government of Canada put measures in place to help famers and food processors maintain their workforces, keep their facilities safe, and manage processing slowdowns and surpluses, while ensuring Canadians continue to have access to high-quality, safe food.
    • AAFC is collaborating with our federal partners to strengthen Canada’s food supply chain so that Canadians have reliable access to affordable, safe, and nutritious food.
    • AAFC is strengthening Canada’s food supply chain by supporting the agricultural sector’s growth, sustainability, and competitiveness, particularly in the areas of production and processing.
    • We are working with our partners to address the areas of concern that were highlighted by the report.

    Emergency preparedness and management

    • Emergency management is a shared responsibility between federal, provincial, and territorial governments and their partners. It relies on ongoing cooperation and communication between all levels of government.
    • AAFC remained agile and adaptable during the pandemic, assisting in areas that were outside of its usual role. For example, AAFC took on increased engagement and actions related to grocery retailers and food banks to address food security issues.
    • Our strength is in collaboration. Throughout the pandemic, AAFC led robust engagement with FPT partners and stakeholders so that our efforts were responsive to the needs of Canadians and the unique situation. We also kept in constant communication with industry to receive intelligence, inform our decision-making, and to ensure that industry was aware of the supports available and actions being undertaken to address issues that had been raised.
    • Moving forward, AAFC will engage with federal, provincial, and territorial partners and stakeholders to develop an action plan to support the supply chain’s preparedness and response efforts in Canada.
    • The action plan will consider the importance of food security, and will recognize the need to support the effective functioning of the supply chain to provide food for Canadians.
    • We have an important opportunity to learn from the pandemic and identify gaps so that we can develop a more resilient food supply chain that meets Canadians’ needs.

    GBA+ and sustainable development

    • AAFC remains committed to pursuing robust Gender-Based Analysis Plus (GBA+) to support and inform decision-making to consider how diverse people—including those who identify as Indigenous, women, youth and other identity factors as well as their intersections—experience its programming.
    • AAFC uses standard GBA+ questions in its project application processes, including the identification of at-risk groups directly benefiting from a specific project, and whether activities are reaching both English- and French-speaking communities, including Official Language Minority Communities (OLMCs).
    • AAFC will ensure that future food-related initiatives include performance indicators, a GBA+ Data Collection Plan, and reporting mechanisms to assess whether the initiatives contribute to sustainable development commitments, as well as gender and diversity outcomes.

    Performance measurement

    • AAFC is committed to fairness, transparency, and accountability in program design and implementation.
    • AAFC recognizes the importance of strong performance measurement to be able to measure and report on program outcomes and will ensure that lessons learned from the report are incorporated into future initiatives.
  • November 29, 2021 OAG Audit of Protecting Canada’s Food System

    About: During the COVID-19 pandemic, the Government of Canada recognized the importance of food systems to Canadians’ well-being, including public health, environmental sustainability and the strength of the economy. The OAG undertook audits in 2021 on funding put in place to address the pandemic.

    Scope: Whether selected federal organizations protected Canada’s food system during the pandemic by effectively designing, delivering and managing programs to help reduce food insecurity and support the resilience of food processors, including

    • AAFC: Emergency Food Security Fund under the Local Food Infrastructure Program
    • AAFC: Surplus Food Rescue Program
    • AAFC: Emergency Processing Fund
    • CIRNAC: Nutrition North Canada subsidy program
    • DFO: Canadian Seafood Stabilization Fund (DFO)

    Conclusion re AAFC: AAFC’s programs helped mitigate the pandemic effects on elements of Canada’s food system, but AAFC needs to put in place a national emergency preparedness and response plan, ensure future programs are fair and transparent, and strengthen performance reporting. AAFC has actioned the recommendations.

    Finding: It was positive that AAFC drew on existing programs to expedite creating new emergency food programs, engaged broadly with stakeholders and worked in coordination with other departments and agencies to help mitigate the pandemic effects on elements of Canada’s food system.

    Finding: AAFC, as the lead federal department for the food sector, should have had a national emergency preparedness and response plan that considered the entire food system and Canadians’ food security.

    Finding: Sustainable development commitments and gender-based analysis plus were considered but need improved performance indicators to report outcomes.

    Finding: Oversight controls and monitoring were in place to assess that funding was spent as directed; however inconsistencies in program design led to unfairness for applicants and recipients.

    Finding: Weaknesses with results measurements in AAFC’s three programs, included reliance on self- assessments by recipients and unclear reporting requirements.

    Recommendations are accepted

    AAFC accepts the four recommendations. AAFC commits to work with Federal and Provincial-Territorial agriculture partners to develop a national emergency preparedness and response plan; ensure sufficient performance measures on gender, diversity and sustainable development outcomes; and will ensure that future programs are delivered fairly and transparently, with appropriate performance indicators and reporting requirements.

    Media: This report is being tabled with other OAG reports that will likely garner significant media attention (for example, Temporary Foreign Workers (ESDC) and Quarantine Enforcement (PHAC). This report may generate media attention, particularly given the BC floods and potential risks to the food supply system. AAFC, at the request of PCO and TBS, prepared a placemat summarizing the audit (findings, recommendations and public environment communications), a statement accepting audit findings, as well as media lines, Q&As and potential Minister speaking points. Communications products were prepared in consultation with CIRNA, DFO, CED-Q and WED. Products highlight the report’s positive elements, such as stakeholder engagement, rapid roll-out, and work to date.

  • Auditor General’s report - protecting Canada’s food system (Question Period card)

    Updated February 17, 2022

    Anticipated question

    What is the Government doing to address the Auditor General’s recommendations?

    Response

    1. I welcome the Auditor general’s report and recommendations on protecting Canada’s food system.
    2. Food systems are essential for the well-being of Canadians and the strength of our economy.
    3. The Government took quick and decisive actions to protect Canada’s food supply during the COVID-19 pandemic.
    4. For example, AAFC funded over 5,000 projects across Canada to support people experiencing food insecurity during the pandemic.

    Responsive on emergency management

    1. The Government effectively supported Canada’s food system during the pandemic and more can be done.
    2. We will work across all levels of government and with industry to prepare for future crises.
    3. This is an important opportunity to learn from recent events so that we can identify gaps and work to develop a more resilient food supply chain.

    Responsive on performance measurement

    • We recognize the importance of strong performance measurement to report on program outcomes and will ensure that lessons learned from the report are incorporated into future initiatives.

    Responsive on fairness and transparency

    • We recognize the importance of having transparent and consistent program implementation and will ensure future initiatives take into account lessons learned from the report.
  • Auditor General’s report – protecting Canada’s food system (one-pager)

    February 17, 2022

    Background

    On December 9, 2021, the Auditor General tabled a report on Protecting Canada’s Food System in the House of Commons. The Auditor General also tabled other reports at that time (including on Temporary Foreign Farm Workers).

    Summary

    The report critiques some elements of the Government’s response during the COVID-19 pandemic, finding that there was not an adequate national emergency preparedness and response plan that considered a crisis affecting the entire food system and Canadians’ food security. The report identifies areas of improvement in program design and implementation relating to GBA+, sustainable development, fairness and transparency, and performance measurement. The report also positively highlights AAFC’s stakeholder engagement across the food sector to inform the design of new response programs.

    Report findings and recommendations

    The Office of the Auditor General examined three initiatives aimed at reducing food insecurity for Canadians and two initiatives aimed at supporting resilience with Canada’s food processing capacity. These were: the Nutrition North Canada subsidy program (CIRNAC), the Emergency Food Security Fund (AAFC), the Surplus Food Rescue Program (AAFC), the Canadian Seafood Stabilization Fund (DFO) and the Emergency Processing Fund (AAFC). The report contained five recommendations, with four directed towards AAFC and one directed toward CIRNAC. Recommendations focused on completing an emergency response plan, considerations related to measuring and reporting on program outcomes, and consistency and transparency in delivery. All recommendations were accepted.

    The pandemic has highlighted the ongoing importance of emergency preparedness. AAFC and the Government of Canada have a unique opportunity to improve our emergency management programs and plans to support the resilience of the food supply chain in Canada. Working with OGDs, PTs and industry, AAFC will develop a well-coordinated action plan to minimize impacts to the national economy and serve the needs of Canadians.

    For future program development, AAFC will continue to ensure that its initiatives are designed and administered fairly and transparently to ensure accountability and that public funds are administered more consistently for all potential applicants and recipients.

    The report recommended ensuring future food-related initiatives measure and report on contributions to sustainable development commitments and to gender and diversity, to improve assessment and outcomes. While Gender-Based Analysis Plus (GBA+) assessments were undertaken, they were conducted during an emergency period and linkages to measurement and outcomes could have been strengthened. Strategic Environmental Assessments include linkages to sustainable development objectives, and were also conducted for all COVID-19 emergency programs. AAFC will ensure that future food-related initiatives include performance indicators, a GBA+ Data Collection Plan, and reporting mechanisms to assess initiatives’ contributions.

    Agriculture and Agri-Food Canada Management Response and Action Plan

    In response to the recommendations of Report 12 — Protecting Canada’s Food System of the Auditor General of Canada to the Parliament of Canada

    Report reference number 12.29
    OAG recommendation Departmental response Description of final expected outcome/result Expected final completion date Key interim milestones (descriptions/dates) Responsible organization/ point of contact (name, position, telephone) Indicator of achievement (for committee use only)
    Agriculture and AgriFood Canada should work with its federal, provincial, and territorial partners, as well as its stakeholders, to complete a national emergency preparedness and response plan for a crisis affecting Canada’s entire food system, taking into consideration the food security of Canadians. Agreed. Within the context of Agriculture and Agri‑Food Canada’s mandate focused on the growth, sustainability, and competitiveness of the food supply chain, the department intends to engage with other relevant federal departments; federal, provincial, and territorial agriculture counterparts; and its stakeholders to develop an action plan to support the supply chain’s preparedness and response events in Canada. The intent of the action plan would be to outline a path forward for federal, provincial, and territorial governments and stakeholders. The action plan will consider the importance of food security and will recognize the need to support the effective functioning of the supply chain to provide food for Canadians.

    This action plan will include a gap analysis and will put forward a feasible federal, provincial, and territorial and stakeholder approach by fall 2022.

    Engagement with federal, provincial, and territorial partners, as well as industry stakeholders, to identify and agree on the range of options to improve interconnectivity and effectiveness of national emergency preparedness, management, and response plans for the food supply system. December 31, 2022 Engagement with Federal Provincial, Territorial and industry stakeholder networks (estimated completion: September 2022):
    • Invite networks to consider the effectiveness of current emergency management and response plans/tools/frameworks that are in place
    • Elicit advice on approach to improving emergency response
    • Outline a path forward for federal, provincial, and territorial governments and stakeholders to identify options and agree on implementation approach

    Conduct a thorough gap analysis that examines the response to the COVID-19 pandemic, as well as subsequent events that negatively affected Canada’s food supply chain (estimated completion: October 2022).

    Consider food security implications and options to support the effective functioning of the supply chain to provide healthy, safe, and culturally appropriate food for all Canadians (estimated completion: December 2022).

    Complete a draft implementation plan for discussion with Federal, provincial and Territorial partners and stakeholders (February 2023).

    Aaron Fowler, Chief Agriculture Negotiator and Director General, Market and Industry Services Branch, AAFC

    613-793-3650

    Aaron.fowler@agr.gc.ca

    Report reference number 12.51
    OAG recommendation Departmental response Description of final expected outcome/result Expected final completion date Key interim milestones (descriptions/dates) Responsible organization/ point of contact (name, position, telephone) Indicator of achievement (for committee use only)
    Fisheries and Oceans Canada and Agriculture and Agri-Food Canada should ensure that their future food- related initiatives measure and report on their contributions toward sustainable development commitments and to gender and diversity in order to improve assessment and outcomes. Agreed. Agriculture and Agri‑Food Canada will ensure that future food-related initiatives include performance indicators, a gender- based analysis plus data collection plan, and reporting mechanisms to assess whether the initiatives contribute to sustainable development commitments, as well as to gender and diversity outcomes. Agriculture and Agri-Food Canada has performance indicators and reporting mechanisms in place for future food-related initiatives, specific to gender-based analysis plus and sustainable development. March 31,
    2023

    As part of the Treasury Board submission process for all future food-related initiatives, AAFC’s Programs Branch will develop a Gender Based Analysis Plus (GBA Plus) Data Collection and Reporting Plan, and will do so in collaboration with Strategic Policy Branch and Corporate Management Branch.

    To better integrate measurement and reporting, AAFC’s Programs Branch will include a column in the Performance Information Profiles of all future food- related initiatives to track which indicators include a GBA Plus lens, and/or contribute to sustainable development commitments.

    Mechanisms for AAFC to report on its contributions toward sustainable development commitments and to gender and diversity outcomes will be in place by March 2023.

    Marco Valicenti, Director General, Programs Branch, AAFC

    613-355-2677

    marco.valicenti@agr.gc.ca

    Report reference number 12.64
    OAG recommendation Departmental response Description of final expected outcome/result Expected final completion date Key interim milestones (descriptions/dates) Responsible organization/ point of contact (name, position, telephone) Indicator of achievement (for committee use only)
    Agriculture and Agri Food Canada should ensure that its future programs are delivered fairly and transparently to all involved, including applicants and recipients. Agreed. Agriculture and Agri‑Food Canada strives to ensure fairness and transparency in all its programs, including during the unprecedented COVID‑19 pandemic when providing urgent financial support to help vulnerable Canadians living with food insecurity and to help Canadian food producers to maintain production. Future emergency programming will be delivered with greater consistency, fairness and transparency for all potential applicants and recipients. September 30, 2022 Lessons learned and areas for improvement for more consistent and transparent delivery of emergency programming will be clearly articulated and documented. (September 2022).

    In anticipation of future emergency programming, AAFC will develop generic tools to promote consistent and transparent delivery by third parties with greater consistency, fairness and transparency to recipients. (September 2022)

    Marco Valicenti, Director General, Programs Branch, AAFC

    613-355-2677

    marco.valicenti@agr.gc.ca

    Report reference number 12.80
    OAG recommendation Departmental response Description of final expected outcome/result Expected final completion date Key interim milestones (descriptions/dates) Responsible organization/ point of contact (name, position, telephone) Indicator of achievement (for committee use only)
    Agriculture and Agri Food Canada should ensure that its future initiatives have performance measurements that allow it to obtain sufficient, consistent, and relevant data to assess the achievement of outcomes. Agreed. Agriculture and Agri‑Food Canada had in place performance measures to assess the results of the initiatives covered in this report. The results measurement weaknesses indicated by the Office of the Auditor General of Canada will be reviewed so that the department can learn from these initiatives and develop improved performance measurement strategies for future departmental initiatives to better enable effective measurement of and reporting on the achievement of program outcomes. Future departmental initiatives will include improved performance measurement strategies to better enable effective measurement of and reporting on the achievement of program outcomes. September 30, 2022 Lessons learned and areas for improvement for performance measurement of emergency programming will be clearly articulated and documented. (September 2022)

    In anticipation of future emergency programming, AAFC will develop generic performance measurement tools that will be used to guide the development of Performance Information Profiles, with input from the Treasury Board Secretariat, to better enable effective measurement and reporting. (September 2022)

    Marco Valicenti, Director General, Programs Branch, AAFC

    613-355-2677

    marco.valicenti@agr.gc.ca

  • Recommendation 12.29: National Emergency preparedness and response plan

    Background

    The report critiques some elements of the Department’s response during the COVID-19 pandemic, finding that there was not an adequate national emergency preparedness and response plan that considered a crisis affecting the entire food system and Canadians’ food security. The report also positively highlights AAFC’s stakeholder engagement across the food sector to inform the design of new response programs.

    COVID-19 put significant pressure on the Canadian food supply chain, and the supply chain generally proved adaptable and resilient. However, there were periodic interruptions and challenges, with reductions in availability of specific products, including as a result of disruptions arising from changes in demand between food service and retail, and localized shortages when consumer reactions gave way to some hoarding/panic buying.

    The pandemic required an unprecedented government response to support Canadians and Canadian industries. Although the food supply chain proved resilient, that resilience was to a significant degree reinforced by assistance, both financial and non-financial, provided to industry by a variety of sources. AAFC, CFIA, and other organizations of the agriculture and agri-food portfolio; other federal government departments; and PTs all implemented a range of program supports for the sector. This included, in the case of AAFC, certain supports in areas where the Department may not have had an explicit mandate nor an extensive history of policy engagement (for example, retail). Consequently the Department was required to expand its capacity for engagement in order to ensure it was in a position to provide intelligence, advice and support across the entire food supply chain.

    The pandemic has reinforced the ongoing importance of emergency preparedness and contributed to important lessons learned with respect to our overall approach to EM, including in the food sector. AAFC and the Government of Canada have a unique opportunity to improve our emergency management programs and plans to support the resilience of the food supply chain in Canada.

    The government has recognized the importance of emergency management and has a new Minister of Emergency Preparedness, in addition to the Minister of Public Safety, to better support both increased capacity for emergency response as well as overarching emergency management transformation. Public Safety is leading work to renew the emergency management governance for the federal government.

    AAFC, working with OGDs, PTs and industry, will mirror this approach as the Lead Federal Department for Food, and will support broader emergency management transformation across government. In the immediate future, this will include engagement with FPT governments and stakeholders to identify and agree on the range of options to improve our national emergency preparedness, management, and response plans for the food supply system.

    Responsive on emergency management

    • Emergency management is a shared responsibility between federal, provincial, and territorial governments and their partners in the private sector. It relies on ongoing cooperation and communication between all levels of government.
    • AAFC remained agile and adaptable during the pandemic, assisting in areas that were outside of its usual role. For example, AAFC took on increased engagement and actions related to grocery retailers and food banks to address food security issues over the course of the pandemic.
    • Moving forward, AAFC will engage with federal, provincial, and territorial partners and stakeholders to develop an action plan to support the supply chain’s preparedness and response efforts in Canada
    • The lessons learned not only from Covid but also from subsequent emergency events including the BC floods and recent border blockades present an important opportunity to learn and to identify gaps and work to develop a more resilient food supply chain.
  • Recommendation 12.51: Contributions to sustainable development

    Background

    Many of Agriculture and Agri-Food Canada's activities contribute to the goals of the Federal Sustainable Development Strategy (FSDS), as well as a number of broader intergovernmental sustainable development initiatives, such as the Federal Implementation Plan for the 2030 Agenda for Sustainable Development, led by Employment and Social Development Canada.

    The OAG report recommended ensuring future food-related initiatives measure and report on contributions to sustainable development commitments and to gender and diversity, to improve assessment and outcomes. Strategic Environmental Assessments include linkages to sustainable development objectives, and were conducted for all COVID-19 emergency programs.

    AAFC has an obligation (under the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals) to conduct SEAs for departmental policy, plan, or program proposals. This includes analyzing the impacts of the given proposal on the environment, as well as considering whether the outcomes of the proposals could affect FSDS goals and targets and SDGs. AAFC developed a formal internal SEA process in 2016 to ensure compliance with the Cabinet Directive. It outlines the required level of approval for each of the 3 steps in the SEA process: Initial Review, Preliminary Scan and detailed SEA.

    Similarly, GBA Plus assessments were conducted for all COVID-19 emergency programs. GBA Plus assessments are mandatory for Budget submissions, Memoranda to Cabinet and Treasury Board submissions. The analysis considers the impacts of policies, programs and initiatives on diverse groups, and aims to enable access if inequity is identified.

    Responsive – sustainable development

    • Strategic Environmental Assessments were conducted for all COVID-19 emergency programs led by AAFC, according to the Cabinet Directive and AAFC’s formal internal process.
    • AAFC is committed to ensuring consideration of any effects of proposals, on the goals and targets of the Federal Sustainable Development Strategy when conducting strategic environmental assessments.
    • AAFC reports on its sustainable development activities through its Departmental Sustainable Development Strategy.
    • A new SDG reporting table was added to the Departmental Plan process for 2022-23, which will help improve the reporting of contributions to sustainable development commitments for future initiatives.
    • Measurement and reporting can be strengthened by better integrating sustainability (and gender and diversity) objectives early in the development process of food-related initiatives.

    Responsive – GBA plus

    • GBA Plus assessments were conducted for all emergency programs led by AAFC. However, they were conducted during an emergency period and linkages to measurement and outcomes could have been strengthened.
    • For the Emergency Processing Fund, Surplus Food Rescue Program and Emergency Food Security Fund, GBA Plus assessments were conducted at the Budget proposal phase, which occurred simultaneously with the MC development.
    • The GBA Plus Supplementary Information Table as part of the Departmental Results Report has become more robust in reporting on programs, which will help improve the reporting of gender and diversity outcomes for future initiatives.
    • AAFC will ensure that future food-related initiatives include performance indicators, a Gender- Based Analysis Plus Data Collection Plan, and reporting mechanisms to assess whether the initiatives contribute to gender and diversity outcomes.
  • GBA+ assessments for select COVID-19 response measures

    Addressing Food Security in Canada –  Objective 3: Improve food supply for vulnerable people

    Off-cycle proposal

    March 27, 2020

    Summary GBA+ statement

    With the COVID-19 crisis, the national system of emergency food service providers could face a strong increase in demand while at the same time facing a shortage in funding, volunteers and some types of food. AAFC’s support of emergency food service networks and the Nutrition North Program will ensure they can continue to provide critical support to food insecure populations as they face challenges brought on by COVID-19.

    According to the 2019 Hunger Count Report from Food Banks Canada, children represent 34.1 percent of food bank users while they represent 19.4 per cent of the general population. In 2019, single person households also saw a significant increase in usage and seniors 65 and over have been the fastest rising age group accessing food banks. In addition, the largest portion of food banks users lived in market rentals with primary sources of income coming from social assistance or disability related income support. In 2017-2018, according to the Canadian Community Health Survey single females and males reported being food secure almost equally, however when it came to single female parents there was a larger portion that identified as being food insecure. According to Food Banks Canada, nearly equal proportions of men and women draw on food banks.

    COVID-19 poses serious risks to the livelihood of Canadians through lay-offs and reduced opportunities for work. Food processors’ difficulty in maintaining production is exacerbated by high demand as consumers have resorted to “panic buying”. Retailers are facing challenges managing shortages of many goods, coupled with absenteeism and sanitation measures to protect employees and customers. All of this increases the risk of more Canadians becoming food insecure. Emergency food service networks are accessible by all people and can alleviate food insecurity but will need support to manage this potential increased demand and shortages of supply. All Canadians stand to benefit indirectly from having robust emergency food service networks ready to support them should the need arise.

    Addressing food security in Canada – Objective 1: Secure Canada’s food processing capacity + Objective 4: Recognize the food supply chain as an essential service

    Off-cycle proposal

    March 27, 2020

    Summary GBA+ statement

    Funding to increase domestic food production will directly benefit producers and processors who receive the funding as they get an opportunity to increase the size of their business. The sector remains predominantly male and older and it is likely that funding will go to these established producers and processors who are most capable of maximizing food production. Announcements highlighting the importance of the sector and employment information also benefit those in the sector who are facing labour shortages.

    The proposed initiative is overall not expected to carry negative differential impacts. While older male Canadians represent the largest population of those who will directly benefit from the initiative, given that they represent the largest demographic group of farm operators and processors, the initiative is not likely to weaken gender equality or diversity. This analysis anticipates this to be true since all Canadians indirectly benefit from a robust food supply chain that can weather pressures brought on by COVID-19.

    A secure food supply chain indirectly benefits all Canadians. According to the Canadian Community Health Survey, in 2017-18, 87.3 percent of respondents identified as being food secure. While most Canadians are food secure now, challenges brought on by COVID-19 are placing strains on Canadian food supply. If issues persist and worsen, food supply shortages will hurt every Canadian.

    Announcements highlighting the importance of the sector and employment information can also indirectly benefit all Canadians since it could help provide working opportunities to Canadians who have been laid off or may be laid off as the crisis continues.

    COVID 19 Response: Supporting Canada’s food producers – address surplus production challenge

    Off-cycle proposal

    April 30, 2020

    Summary GBA+ statement

    The proposed actions to support production surplus challenges during the COVID-19 pandemic will directly benefit two groups:

    • producers and processors in the horticulture, poultry and dairy sectors
    • vulnerable Canadians facing high risk of food insecurity.

    In the first beneficiary group these sectors are predominantly older males, which means the proposed actions will likely fund more men than women. Producers will benefit from both initiatives due to ensuring they are fairly compensated for their surplus foods that are otherwise being wasted (for example, dairy producers have had to dump raw milk, potato producers are looking to dump their stored potatoes, as it is too costly to continue storing them while they are also facing decreased revenues).

    The second beneficiary group is food insecure Canadians, as the program aims to redirect surplus foods to organizations who are addressing food insecurity. Challenges brought on by COVID-19 are causing financial strains across the country with more people being left without a job and being at risk of not being able to provide healthy, nutritious foods for themselves and their families. Furthermore, the national system of emergency food service providers could face a strong increase in demand while at the same time facing a shortage in funding, volunteers and some types of food.

    Food insecurity typically impacts vulnerable populations, including the young and elderly. According to the 2019 Hunger Count Report from Food Banks Canada, children represent 34.1% of food bank users while they represent 19.4% of the general population. In 2019, single person households also saw a significant increase in usage and seniors 65 and over have been the fastest rising age group accessing food banks. The Surplus Food Purchase Program will support the efforts of charitable food organizations to address food insecurity in vulnerable communities.

    The proposed initiatives are overall not expected to carry negative differential impacts. While older male Canadians represent the largest population of producers who will directly benefit from the initiatives, given that they represent the largest demographic group of farm operators and processors, the initiative is not likely to weaken gender equality or diversity. Furthermore, the Surplus Food Purchasing Program aims to support increased access to food among at-risk Canadians, so vulnerable populations will also directly benefit. As such, significant negative differential impacts are unlikely.

    COVID-19 response: Ensuring food security through support for producers and vulnerable Canadians

    Off-cycle proposal

    June 9, 2020

    Summary GBA+ statement

    More Canadians have been relying on food banks, due to job losses and transportation slowdowns. Efforts to support food security to date have been effective, and are nearly fully subscribed. Food security partners have noted an increase in demand for their services and have indicated their concerns that there will be a surge in demand, above current levels, when the Canadian Emergency Response Benefit ends.

    This proposal will provide direct support to national food service agencies and new food security focused partners addressing food insecurity in vulnerable populations, including Indigenous and northern communities. The primary target client group is vulnerable Canadians facing increased risks of food insecurity due to COVID-19 and associated disruptions in employment. According to the 2019 Hunger Count Report from Food Banks Canada, children represent 34.1 per cent of food bank users while they represent 19.4 per cent of the general population. In 2019, single person households also saw a significant increase in usage and seniors 65 and over have been the fastest rising age group accessing food banks. In addition, the largest portion of food banks users lived in market rentals with primary sources of income coming from social assistance or disability related income support. In 2017- 2018, according to the Canadian Community Health Survey, single females and males reported being food secure almost equally, however when it came to single female parents there was a larger portion that identified as being food insecure. According to Food Banks Canada, nearly equal proportions of men and women draw on food banks.

    COVID-19 poses serious risks to the livelihood of Canadians through lay-offs and reduced opportunities for work. Food processors’ difficulty in maintaining production is exacerbated by high demand as consumers are purchasing more items less frequently than before COVID-19. Retailers are facing challenges managing shortages of many goods, coupled with absenteeism and sanitation measures to protect employees and customers. All of this increases the risk of more Canadians becoming food insecure. All Canadians stand to benefit indirectly from having robust emergency food service networks ready to support them should the need arise.

    COVID-19 response: supporting the food security for Canada’s most vulnerable

    Budget 2021 proposal

    December 15, 2020

    Summary GBA+ statement

    With the heightened and sustained demand on food banks and community organizations to meet the urgent and increased food needs of vulnerable Canadians during the second wave of COVID-19, this initiative will provide additional funds to support immediate and ongoing food security needs. The proposed actions will directly benefit vulnerable Canadians facing a high risk of food insecurity.

    Before the pandemic, approximately 12.7% of Canadian households experienced some degree of food insecurity, with rates of food insecurity particularly high for Black (28.9%), Indigenous on-reserve (28.2%), First Nations on- reserve (48%), and Nunavut (49.4%) households. There is a strong inverse correlation between household income and food insecurity. The COVID-19 pandemic has exacerbated food insecurity through job losses and reduced access to healthy food, as typical food distribution points (such as schools, churches, community centres) have had to close, reduce, or pivot services due to physical distancing measures. As a result, more families are at risk of not being able to provide healthy, nutritious foods for themselves and their families.

    In a typical month in 2019, more than one million vulnerable Canadians visited one of the more than 600 food banks located across the country. According to the 2019 Hunger Count Report from Food Banks Canada, children represent 34.1% of food bank users while they represent 19.4% of the general population. Data from the 2017-18 Community Health Survey also demonstrated that, among lone-parent households with children under 18 years old, female lone-parent households have a higher rate of food insecurity (25.1%) than male lone-parent households (16.3%). Furthermore, during the pandemic, Statistics Canada found that there was a higher rate of food insecurity being reported among Canadians living in a household with children (19.2%) compared to those living with no children (12.2%).

    According to Food Banks Canada, nearly equal proportions of men and women used food banks in 2019. However, it can be assumed that women have been more vulnerable to food insecurity throughout the pandemic, especially given that there is a strong correlation between source of income (for example, social assistance) and food insecurity, and women have been more impacted financially throughout the pandemic as Canada has faced a ‘she-cession’.

    In terms of quality of life considerations, this proposal is expected to provide major benefits under the Healthy People and Economic security and deprivation sub-domains, and minor impacts under the Ecological Integrity and Environmental Stewardship sub-domain. These benefits are expected to be mostly felt by low income families, especially those with women or children, are BIPOC (Black, Indigenous, or people of colour), or those with disabilities.

    The proposed initiative is overall not expected to carry significant negative differential impacts. As food insecurity is highly correlated with low income levels, the proposed initiative will have somewhat positive income distribution impacts on low income individuals. The increased access to food for at-risk Canadians that the program will support can help those facing food insecurity redirect scarce monetary resources towards other essential items during the pandemic. No significant generational impacts are expected, as the initiatives will benefit a range of people of different ages. Food insecurity impacts Canadians at various ages, including children and seniors.

AAFC Strategic Environmental Assessment Decision Flowchart

Description of the above image

AAFC Strategic Environmental Assessment Decision Flowchart

The flowchart moves through the steps required to determine whether or not the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals applies to a specific policy, plan or program proposal. If the Cabinet Directive applies, then up to three steps are followed to make a determination on which level of SEA is required. The flowchart also identifies the appropriate level of approval , tracking and reporting requirements, and provides general timelines for each step of the process.

Begin

An internal or external policy, plan or program proposal is being presented  to a Minister or Cabinet (Memorandum to Cabinet, Treasury Board Submissions, Memorandum to the Minister for decision)

Step 1: Initial review

This step determines

  • the applicability of the Cabinet Directive
  • potential for environmental effects
  • whether the proposal warrants proceeding to step 2

Timeline: once all the information is gathered, step 1 is completed within 48 hours, on average.

Step 1 has 3 potential outcomes:

  • the directive does not apply
  • the directive applies but no further analysis is required
  • directive applies and a Preliminary Scan level SEA is recommended

The Cabinet Directive applies only when a new decision is being made on an internal or external policy, plan or program proposal. If the Cabinet Directive does not apply, no further action is needed.

If the directive applies, an initial review is completed. No further SEA analysis is required when the proposal is described in the Agriculture and Agri-Food Canada (AAFC) exemption list.

  • If an internal proposal: the proposal lead provides approval. No tracking is required, however decision memos will be sampled annually.
  • If an external proposal: Deputy Director of AAFC’s Environmental Services Unit provides approval. The decision is documented and tracked in the SEA database, and reflected in annual reports (Federal Sustainable Development Strategy, Departmental Performance Report, internal Strategic Policy Branch reporting).

If the proposal is not on the AAFC exemption list, a determination must be made as to whether the proposal is considered a special case under section 4.4 of the Cabinet Directive (for example, emergency; cabinet urgency; or previously assessed).

  • If the proposal is a special case, no further SEA analysis is required.
  • If the proposal is not a special case, a preliminary scan is recommended (continue to step 2).

For either of these scenarios : Deputy Director of AAFC’s Environmental Services Unit provides approval. The decision is documented and tracked in the SEA database, and reflected in annual reports (Federal Sustainable Development Strategy, Departmental Performance Report, internal Strategic Policy Branch reporting).

Step 2: Preliminary scan

This step determines the extent of the proposal’s environmental effects and involves completing a preliminary scan. This step also determines whether the proposal should proceed to step 3.

Timeline: Once all the information is gathered, step 2 is completed within 4 weeks, on average.

If a decision is made to not complete a preliminary scan, rationale must be developed.

If a preliminary scan is completed, and no important environmental effects are identified, a detailed SEA is not required.

If a preliminary scan is completed, and important environmental effects are identified, a detailed SEA is required: continue to step 3.
For each of these scenarios,

  • Director Generals from the lead branch and Strategic Policy Branch approve the rationale or scan
  • A decision is documented and tracked in the SEA database, and reflected in annual reports (Federal Sustainable Development Strategy, Departmental Performance Report, internal Strategic Policy Branch reporting)

Step 3: Complete a detailed SEA

This step involves completion of a comprehensive, detailed SEA.

Timeline: Once all the information is gathered, step 3 is completed within   6 months, on average.

If a decision is made to not complete a detailed SEA, rationale must be developed.

If a detailed SEA is completed, the results will inform the final recommendation on the proposal.

The final SEA report is provided to the lead branch and a communication plan is developed.

For both scenarios above:

  • Assistant Deputy Ministers from the lead branch and Strategic Policy Branch approve the rationale or report.
  • A decision is documented and tracked in the SEA database, and reflected in annual reports (Federal Sustainable Development Strategy, Departmental Performance Report, internal Strategic Policy Branch reporting). A public statement is issued when the proposal is approved or announced.

If a detailed SEA is completed,

  • Assistant Deputy Ministers from lead branch, Strategic Policy Branch and Public Affairs Branch approve the communication plan.

Auditor General report on Protecting Canada’s Food System

Background

On December 9, 2021, the Auditor General tabled a report on Protecting Canada’s Food System in the House of Commons.

The report critiques some elements of the Government’s response during the COVID-19 pandemic, finding that there was not an adequate national emergency preparedness and response plan that considered a crisis affecting the entire food system and Canadians’ food security.

The report identifies areas of improvement in program design and implementation relating to GBA+, sustainable development, fairness and transparency, and performance measurement.

The report also positively highlights AAFC’s stakeholder engagement across the food sector to inform the design of new response programs.

Report findings and recommendations

The Office of the Auditor General examined three initiatives aimed at reducing food insecurity for Canadians and two initiatives aimed at supporting resilience with Canada’s food processing capacity:

  • Nutrition North Canada subsidy program (CIRNAC);
  • Emergency Food Security Fund (AAFC);
  • Surplus Food Rescue Program (AAFC);
  • Canadian Seafood Stabilization Fund (DFO); and
  • Emergency Processing Fund (AAFC).

The report contained five recommendations, with four directed towards AAFC and one directed toward CIRNAC. Recommendations focused on completing an emergency response plan, considerations related to measuring and reporting on program outcomes, and consistency and transparency in delivery. All recommendations were accepted.

Recommendations under Programs Branch responsibility

Recommendation 12.64 - Agriculture and Agri-Food Canada should ensure that its future programs are delivered fairly and transparently to all involved, including applicants and recipients.

Response 12.64 - AAFC strives to ensure fairness and transparency in all its programs, including during the unprecedented COVID-19 pandemic when providing urgent financial support to help vulnerable Canadians living with food insecurity, and to help Canadian food producers to maintain production.

AAFC will strive to deliver future emergency programming with greater consistency, fairness and transparency for all potential applicants and recipients.

Recommendation 12.80 - Agriculture and Agri-Food Canada should ensure that its future initiatives have performance measurements that allow it to obtain sufficient, consistent, and relevant data to assess the achievement of outcomes.

Response 12.80 - AAFC had in place performance measures to assess the results of the initiatives covered in this report. The results measurement weaknesses indicated by the OAG will be reviewed, so that AAFC can learn from these initiatives to develop improved performance measurement strategies for future AAFC initiatives to better enable effective measurement of and reporting on the achievement of program outcomes.

Responsive

For future program development, AAFC will continue to ensure that its initiatives are designed and administered fairly and transparently to ensure accountability and that public funds are administered more consistently for all potential applicants and recipients.

AAFC will ensure that future food-related initiatives include performance indicators, a GBA+ Data Collection Plan, and reporting mechanisms to assess initiatives’ contributions.

Supply chain and food security — key messages

Supply chain and disruptions

  • Canada’s transportation supply chain has experienced significant disruptions during the COVID- 19 pandemic and recent extreme weather events.
  • Ensuring that essential goods reach Canadians as quickly as possible is a top priority for the Government of Canada.
  • On January 31, 2022, the Minister of Transport, the Minister of Agriculture and Agri-Food, the Minister of Innovation, Science and Industry, the Minister of International Trade, Export Promotion, Small Business and Economic Development, and the Minister of Employment, Workforce Development and Disability Inclusion, hosted a National Supply Chain Summit.
  • This Summit brought together business and industry leaders and associations, to discuss the challenges facing our supply chain.
  • Ministers discussed different themes that facilitated discussion to identify key challenges and potential solutions for a more efficient and resilient supply chain to support Canada’s economic recovery.
  • Ministers also signalled that over the coming weeks, this Summit will be followed by a series of regional and industry sectoral sessions to continue the dialogue.
  • To further advance this work, a national Supply Chain Task Force will be created.
  • The Task Force will consult with industry experts to make recommendations regarding short and long-term actions pertaining to Canada’s supply chain.

BC flood response

  • The Government of Canada stands with farmers and communities who are feeling the impacts of extreme weather conditions in British Columbia (B.C.). We will continue to support farm families to get through the challenges they are facing now and build a sustainable future.
  • B.C. farmers who suffered extraordinary damages in the devastating floods will have access to up to $228 million in federal-provincial support to help their farms return to production and support food security in the years ahead.
  • This Canada-BC Flood Recovery Program for Food Security will be delivered by the Government of British Columbia and leverage the federal government’s AgriRecovery Framework and Disaster Financial Assistance Arrangement (DFAA).
  • In addition to AgriRecovery, producers have access to a suite of Business Risk Management (BRM) programs to help them manage significant risks that threaten the viability of their farms.
  • Producers are encouraged to sign up for the AgriStability program, which can help farmers cover severe drops in farm income. The governments of Canada and B.C. agreed to open up late participation in AgriStability so farmers who did not register in 2021 can still benefit from this important income support. Producers have until December 31, 2022 to register for the 2021 program year.
  • The two governments also agreed to increase the 2021 AgriStability interim payment percentage to 75%, up from 50%, so producers can access a greater portion of their benefit early to meet their urgent needs. Initial payments can be available in a matter of weeks.
  • Insured producers can also make claims under AgriInsurance, which insures crops against losses due to weather.

Flood recovery support for BC farmers

  • In the event of large-scale disasters, the Government of Canada provides financial assistance to provincial and territorial governments, at their request, through Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada.
  • When response and recovery costs exceed what individual provinces or territories can reasonably be expected to bear on their own, they can request assistance through the DFAA.
  • The provincial or territorial governments design, develop and deliver disaster financial assistance, deciding the amounts and types of assistance that will be provided to those that have experienced losses. The DFAA Program places no restrictions on provincial or territorial governments in this regard.
  • Under the Disaster Financial Assistance Arrangements (DFAA), provinces and territories have six months following the end of a disaster to request financial assistance. Once received, an Order- in-Council (OiC) is required in order to issue payments. Provinces and territories have a limit of five years, from the date of the approval of the Order-in-Council, to submit the final claim.
  • We have received an initial request for assistance under the DFAA from British Columbia (B.C.).
  • B.C. has signalled that they will be requesting an advance payment under the DFAA once they have an estimate of the overall cost for the recovery. Public Safety will action the advance payment once the estimate has been received.
  • In addition to support offered under the DFAA, the Government of Canada and the Province of British Columbia have committed to matching donations to the Floods and Extreme Weather Appeal, and thanks to the generosity of Canadians, the Red Cross has raised more than $30 million in donations for a total of more than $90 million. As of January 17, 2022, the Red Cross has distributed more than $17 million in evacuation related emergency financial assistance to more than 7,200 eligible households.
  • Recovering from this event is a long-term proposition, and the Government of Canada is committed to providing the necessary assistance to support the people of British Columbia through this difficult time.

Rail transportation

  • The rail freight system has been challenged to recover after the historic flooding and infrastructure damage in British Columbia.
  • The Government of Canada continues to monitor the performance of the rail transportation system to ensure the entire supply chain is working to recover, and over the longer term, optimize its capacity and help Canada compete on a global stage.
  • Canada remains committed to ensuring that high-quality, affordable agriculture and agri-food products remain available for all Canadians and for our international customers.
  • We will continue to work closely with other federal departments and provincial and territorial governments to help ensure the sector has what it needs to maintain Canada's food supply.

Labour

  • Our government is very concerned about the effects the Omicron variant could have on the workers in our production and processing sectors. We know that our industry continues to experience challenges in recruiting and retaining workers, just as it did even before the pandemic hit, that is why we continue to prioritize agricultural temporary foreign worker applications for processing.
  • The health and safety of workers, both domestic and foreign, remains our top priority. We recognize the importance of ensuring that temporary foreign workers can continue to arrive in sufficient numbers, stay healthy, and support the sector. The best way to be protected is to get vaccinated, wear a mask, distance, and follow local public health guidelines.
  • We have committed to establishing an Agricultural Labour Strategy, and the federal government will continue to work with the provinces and territories on opportunities to support labour in the Next Agricultural Policy Framework, the agreement that will replace the $3 billion Canadian Agricultural Partnership. Throughout the pandemic we have stepped up for our industry, launching programs and initiatives to support employers, workers and Canadians through labour shortages and supply chain disruptions, including:
    • We put in place the $58 million Enhanced Agri-food Workplace Protection Program, which included the $35 million Emergency On-farm Support Fund, and assisted agricultural producers with some of the incremental costs for activities that improve the health and safety of all farm workers.
    • Up to $83.5 million was also allocated under the Emergency Processing Fund to help companies implement changes to safeguard the health and safety of workers and their families due to the impacts of the COVID-19 pandemic.
    • $125 million was allocated through national AgriRecovery initiatives to help producers faced with additional costs incurred by COVID-19.
    • Launching the Step up to the Plate employment web portal so Canadian job seekers can easily search available positions in agriculture and agri-food across the country, and learn more about working in the sector.

We put in place the $58 million Enhanced Agri-food Workplace Protection Program, which included the $35 million Emergency On-farm Support Fund, and assisted agricultural producers with some of the incremental costs for activities that improve the health and safety of all farm workers.

Up to $83.5 million was also allocated under the Emergency Processing Fund to help companies implement changes to safeguard the health and safety of workers and their families due to the impacts of the COVID-19 pandemic.

$125 million was allocated through national AgriRecovery initiatives to help producers faced with additional costs incurred by COVID-19.

Launching the Step up to the Plate employment web portal so Canadian job seekers can easily search available positions in agriculture and agri-food across the country, and learn more about working in the sector.

  • We will continue to consult with the industry to identify challenges associated with the pandemic, such as access to labour and manufacturing inputs, and determine next steps on these challenges.

Food security

  • Improving food security is a priority for the Government that requires collaboration across several federal departments and agencies. Our aim is to strengthen our food systems at every step—from improving access to healthy and culturally diverse food, sustainable food production and processing, strong local food infrastructure, and less food waste.
  • That is why in 2019 we launched Canada’s first-ever Food Policy.
  • Our vision is that all people in Canada should be able to access a sufficient amount of safe, nutritious and culturally diverse food, and that Canada’s food system is resilient and innovative, sustains our environment and supports our economy.
  • Building on our investments of nearly $250 million to improve food security, Budget 2021 provided an additional $140 million to top up the Emergency Food Security Fund and the Local Food Infrastructure Fund, to help prevent hunger, strengthen food security in our communities, and provide nutritious food to more Canadians.
  • To strengthen food security in the North, we will invest $163.4 million over three years to expand the Nutrition North Canada program.
  • Addressing the challenges that vulnerable Canadians have in accessing healthy food will continue to be a priority for our Government beyond the pandemic.

Food prices

Canadian Dairy Commission decision on pricing

  • This decision was made independently by the Canadian Dairy Commission after consultation with all the stakeholders across the supply chain.
  • In Canada, we believe strongly in our supply management system because it delivers quality products at fair prices while supporting hard-working farm families.
  • As the CDC’s decision makes clear, heightened input costs such as feed, fuel and labour required this bump in price.
  • The pandemic, the drought and persistent global supply chain issues all play a role in these trends, which exist in all parts of the agriculture sector.
  • Further questions regarding the specifics of the decision should be directed to the Canadian Dairy Commission.

Inflation

  • I know the cost of living is top of mind for Canadians, and it’s top of mind for myself, and for our Government.
  • Making life more affordable has been our priority since day one and it’s why we have made moving forward with $10 a day child care and affordable housing among the top priorities for our new mandate.
  • This builds on other policies like the Canada Child Benefit.
  • We know this is a global challenge as well and we’re going to continue working on solutions with partners both at home and abroad.

Food prices

  • Canada is not alone in facing high food prices. These commodity price trends are being felt worldwide.
  • Extreme weather leading to poor harvests, supply chain issues and other challenges all play a role in these international trends.
  • Canada has a role to play in feeding the world and standing up for rules-based trade.
  • Also - Food Policy for Canada – Our vision is that all people should be able to access a sufficient amount of safe, nutritious, and culturally diverse food.
  • During the pandemic, we supported struggling Canadians through the Emergency Food Security Fund, the Local Food Infrastructure Fund and the Surplus Food Rescue Program.

Food supply chain challenges (Question Period card)

Updated February 28, 2022

Anticipated question

COVID-19 has disrupted food supply chains, increased food prices, and affected food security in Canada. What is the Government doing to ensure that Canadians can continue to access the food they need for themselves and their families?

Response

  1. Despite some challenges from the pandemic and other events, Canada’s food supply chain has proven resilient.
  2. From farms to grocery stores, those in the supply chain have worked hard to adjust and adapt to ensure that all Canadians have reliable access to healthy food.
  3. I continue to work with my colleagues across the federal government, provinces, territories and industry to monitor the situation in Canada, and to ensure our food supply chains are more resilient than ever.
  4. The multi-sector National Supply Chain Summit was an opportunity to engage industry directly on potential responses to these challenges.

Responsive on the mandatory vaccination measures for truckers

  1. In the fight against COVID-19, we must take the necessary steps to protect all Canadians.
  2. The Government of Canada has been communicating these new requirements since November with a view to minimizing adverse impacts on the labour force and supply chains.
  3. We continue to engage closely with the agri-food sector to monitor these impacts carefully.

Responsive on rising food prices

  1. The price of food is driven by many factors, such as input costs, weather, marketing and transportation.
  2. The Government of Canada is focused on measures to ensure an adequate supply of food and an efficient and fair market, while supporting those who are food insecure to gain access to a healthy diet.
  3. We have also provided a number of other supports, such as wage and rent subsidies, to help businesses and Canadians deal with rising costs through the pandemic.

Responsive on food security

  1. As part of our response to the pandemic, we invested
    • $330 million in the Emergency Food Security Fund to support food assistance organizations, as well as
    • $50 million in the Surplus Food Rescue Program, which helped redirect food surpluses to organizations addressing food insecurity.
  2. Through the Food Policy for Canada, our government has invested $134.4 million in new programming, including support to address the unique food security challenges faced by Indigenous and northern communities.
  3. We have also made child care and affordable housing among the top priorities for our new mandate.

Responsive on impacts of Ukrainian war on food supply chain and food prices

  1. Ukraine is one of the world’s top cereal and oil seed exporters.
  2. The conflict between Russia and Ukraine is expected to contribute to increases in the world prices for grains and oilseeds. This could lead to food security issues in countries in the European Union, Middle East, and Africa.
  3. Canada is a net exporter of key commodity crops such as wheat and oilseeds. However, market demand and existing stocks will influence the extent to which the Canadian crop may be available to supply these regions.
  4. The conflict in Ukraine has increased the volatility of stock markets with both cattle and hog futures prices in North America declining last week.

Food supply chain challenges (one-pager)

February 28, 2022

Background

Canada’s food supply chain is highly efficient and streamlined to eliminate redundancies both domestically and with international trading partners. However, local and global events have created pressures on the global and Canadian food supply chain throughout the pandemic.

While the supply chain disruptions in the early stages of the pandemic were heavily influenced by shifts in demand, the current pressures are driven more by supply constraints, from labour shortages in processing facilities to frictions and delays within transportation routes. Recent natural disasters, such as the 2021 floods in British Columbia, have also impacted some of Canada’s transportation infrastructure and affected the domestic distribution; as well as imports and exports of agriculture and food products.

On January 31st 2021, the Minister of Transport hosted a multi-sector National Supply Chain Summit in early 2022, that brought together industry, shippers and organizations that run critical infrastructure to discuss how to better streamline Canada’s supply chain.

Mandatory vaccinations for truckers

As of January 15, 2022, truck drivers who are unvaccinated are no longer exempt from Canadian entry requirements. This means that Canadian truckers who are not fully vaccinated upon entering Canada will be required to self-isolate for 14 days. Unvaccinated truck drivers who are not Canadian will be turned back at the border. More than two-thirds of all goods traded between the U.S. and Canada travel through roads. On January 22, 2022, the United States implemented a similar vaccine mandate for any truck driver entering the country. This mandate is expected to have a signficant impact on American truck drivers entering Canada, as recent data indicates that roughly 45% of American truck drivers are unvaccinated.

Roughly 90% of truck drivers in Canada are fully vaccinated, however, the Canadian Trucking Alliance estimates that approximately 16,000 individuals have now been taken off the roads due to their vaccination status.

Combined with the absenteeism rates due to COVID-19, long standing labour shortages, and more specialized requirements for agri-food transport, short-term negative impacts related to the price and supply of food are expected. Since this mandate came into effect on January 15, the agri-food sector reports a range of supply chain impacts, including increased costs and disruptions for fresh fruits and vegetables; livestock; and feed supplies. Agriculture and Agri-Food Canada (AAFC) is montoring this issue closely, working with industry and other government departments to obtain the latest information.

Abseentism and labour issues across the food supply chain

Labour recruitment and retention has been an ongoing challenge for parts of the food supply chain prior to pandemic and was exaceberated by COVID-19 and public health measures. Initial labour challenges in 2020 included outbreaks in food processing plants and farms, as well as challenges in bringing in temporary foreign workers.

Beginning in November 2021, the Omicron strain of COVID-19 and its high rate of transmission has increased absenteeism and impacted the operation of production, processing, and retail facilities. Agri- food sector reported labour shortages, with absenteeism increasing. Industry associations have also raised concerns about access to rapid tests. The Government of Canada is working with industry to prioritize the access of rapid tests for the agri-food sector, including grocery stores.

Food security in Canada

Food security goes beyond the production and supply of food to include the physical and economic ability to access food; as well as the availability of food that is nutritious, safe and culturally appropriate. Before the pandemic, an estimated 12.7% of Canadian households experienced food insecurity, with rates particularly high for Black (28.9%), Indigenous off-reserve (28.2%), First Nations on-reserve (48%), and Nunavut (57%) households. Households with children headed by women are particularly at risk.

Supply chain impacts currently appear limited to localized availability issues and upward pressure on prices for certain foods, with no present indication of widespread impacts to food security. However, food insecurity challenges are expected to continue through 2022 with unpredictability related to employment and economic recovery, particularly in sectors heavily affected by the pandemic such as food service and tourism.

COVID-19 and rising food prices

For 2022, Canada’s 12th annual Food Price Report projects that food prices will rise by 5 to 7%. Rising food prices are attributed to ongoing impacts of adverse weather events, supply chain disruptions due to COVID-19, labour market challenges, and high overall inflation in 2022. However, this report is only a forecast based on the current and historical economic environment, and what actually occurs may differ.

According to the latest monthly Consumer Price Index data for December 2021, food prices have increased more than the overall rate of inflation over the last year. Economy-wide prices were 4.8% higher in December 2021 than they were in the same month in 2020. Consumer food prices in December 2021 were 5.2% higher than they were in December 2020. While the pace of food price increases has accelerated, in general, in the recent months, such price increases vary widely across food categories. For instance, from December 2020 to December 2021, the consumer price of meat increased by 9.0%, while the consumer price of fresh vegetables and bakery products only increased by 3.4%. According to the latest Survey of Household Spending in 2019, Canadians spend about 11% of their household expenditure on food.

The price of food products at the grocery store is driven by many factors, such as input costs, marketing, labour wages and transportation. These prices are also influenced by the international trade environment, geopolitical uncertainties, shifting consumer preferences, and supply shocks such as droughts in key growing regions of North America.

Consistent with Canada’s WTO commitments, provincial and federal governments deliberately have minimal direct involvement in managing food prices or production decisions in Canada. Their influence is mainly through measures to ensure an efficient and fair market, and by measures to mitigate the impact on vulnerable Canadians.

Emergency COVID-19 food security support

During COVID-19, a number of emergency federal initiatives were launched to support local, regional, and national food organizations who provide help to Canadians across the country. For example:

  • ESDC’s $350-million Emergency Community Support Fund;
  • An additional $25 million from Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) to enhance the Nutrition North food subsidy;
  • Indigenous Services Canada’s (ISC) $1.8-billion Indigenous Community Support Fund, with the flexibility needed for Indigenous leadership to design and implement community-based solutions to prevent, prepare and respond to the spread of COVID-19 within Indigenous communities;
  • AAFC’s $330 million under the Emergency Food Security Fund; and
  • AAFC’s $50-million Surplus Food Rescue Program to help redirect existing food surpluses to organizations addressing food insecurity, with a 10% target to northern communities.

AAFC COVID-19 response

Updated November 9, 2021

Anticipated question

Agricultural and agri-food businesses have been seriously affected by the COVID-19 pandemic. What will you do about this?

First response

  1. The work of the sector is critically important to the country, and we are supporting producers, processors and other agri-food businesses so that they can continue to provide for Canadians during this challenging time.
  2. We have taken unprecedented action to support farmers, ranchers, food businesses, and food processors across the value chain as well as provided support for vulnerable populations.
  3. Budget 2021 built on the Government’s commitment to support the sector through COVID-19 and laid out investments to help Canadian farmers and agri-food businesses, their families and their communities as we finish the fight against COVID-19.

Responsive on AAFC-led measures

  1. To date, we have unlocked $5B in additional FCC lending capacity and launched the $100M Agriculture and Food Business Solutions Fund. We increased the Canadian Dairy Commission’s borrowing capacity by $200M to support costs associated with the temporary storage of cheese and butter and avoid food waste.
  2. The Government responded to ensure our farmers continued to have access to labour and provided more than $142.3M to help offset costs associated with mandatory COVID-19 quarantine measures and facilitate the timely and safe arrival of temporary foreign workers.
  3. We also launched a $125M national AgriRecovery initiative to offset the extraordinary costs caused by supply chain disruptions and COVID-19. Producers continue to have access to the suite of business risk management programs.
  4. The Emergency Processing Fund helped companies implement changes to safeguard the health and safety of workers and to improve, automate, and modernize facilities to increase Canada’s food supply capacity.
  5. And for vulnerable Canadians, nearly $250 million has been provided to improve food security, and Budget 2021 announced another $140 million to help prevent hunger, strengthen food security in our communities, and provide nutritious food to more Canadians.

Responsive on economy-wide measures

  1. The Government also provided a number of other supports to help businesses and Canadians through the pandemic. such as wage and rent subsidies.
  2. For example, the Canada Emergency Business Account provided interest-free loans of up to $60,000 to help bridge businesses to the other side of the pandemic.
  3. The Government has proposed to extend the Canada Recovery Hiring Program and the Canada Emergency Wage Subsidy until May 2022 to continue helping businesses who have been hardest hit by the pandemic by offsetting a portion of the extra costs employers take on as they reopen, to ensure they can hire the workers they need so that the economy can fully recover.

Supporting the agricultural sector

November 9, 2021

Background

The COVID-19 health crisis has created significant disruption in the food supply chain and in consumer demand. Budget 2021 lays out significant investments in many areas to further support Canadians and Canadian businesses throughout the pandemic and into recovery.

The Government of Canada plays a critical role to support farmers and food processors to provide safe and secure supply of food to Canadians. Numerous concrete actions have already been taken.

To provide financing and expand lending options, the Government has:

  • enabled Farm Credit Canada to provide an additional $5 billion in lending to producers, agribusinesses, and food processors;
  • created a $100 million Agriculture and Food Business Solutions Fund designed to support viable enterprises dealing with significant business disruptions with financing provided to companies on an individual basis, up to a maximum of $10 million; and,
  • expanded the Canadian Dairy Commission’s line of credit by $200 million to support costs associated with the temporary storage of cheese and butter to avoid food waste.

To support temporary foreign workers and employers who rely on them, the Government has:

  • removed travel exemptions for temporary foreign workers, increased the maximum allowable employment duration for workers in the low-wage stream of the temporary foreign worker program from one to two years and waived the 2-week recruitment period for the next six months, a modification to the labour market impact assessment process;
  • invested $50 million under the Mandatory Isolation Support for Temporary Foreign Workers Program to help with the impacts of the COVID-19 pandemic on food supply in Canada by assisting the farming, fish harvesting, and food production and processing sectors with some of the incremental costs associated with the mandatory 14-day isolation period imposed under the Quarantine Act on temporary foreign workers upon entering Canada. The 2020 Fall Economic Statement provided an additional $34.4 million to continue the Program until March 31, 2021. Budget 2021 extended the Program until August 31, 2021 — providing support of up to $1,500 per worker was provided until June 15, 2021 and $750 per worker until the wind down of the program on August 31, 2021 — and added an additional stream to include support for 3-day hotel quarantines of temporary foreign workers and further increased support. If workers were required to quarantine at a government approved facility, employers could receive up to $2,000 per worker for costs associated with mandatory isolation requirements. This made total program funding up to $142 million; and
  • invested $35 million to improve health and safety on farms and in employee living quarters to prevent and respond to the spread of COVID-19.

To support producers and processors who are facing extraordinary costs and disruptions due to COVID- 19, the Government has:

  • made changes to the Advance Payments Program to help farmers manage their cash flow by announcing a Stay of Default for crop producers who need it during these difficult times;
  • increased interim payments from 50% to 75% through AgriStability, a federal, provincial and territorial program that supports producers that face significant revenue declines;
  • provided an extension to the AgriStability enrollment deadline allowing farmers more time to sign up and benefit from the program;
  • launched a national AgriRecovery initiative of up to $125 million in funding to help producers faced with additional costs incurred by COVID-19. This includes set-asides for cattle and hog management programs to manage livestock backed-up on farms, due to the temporary closure of food processing plants; and,
  • launched a $77.5 million Emergency Processing Fund to help companies implement changes to safeguard the health and safety of workers and their families due to the impacts of the COVID-19 pandemic. The fund also aims to aid companies to invest to improve, automate and modernize facilities needed to increase Canada’s food supply capacity. The program received an additional $5 million in reallocated internal funds and is expecting a further $5 million in reallocated departmental funds.

To support vulnerable Canadians, the Government has:

  • invested $330 million through the Emergency Food Security Fund to improve access to food and increase food supply for Canadians facing social, economic, and health impacts of the COVID-19 pandemic; and
  • launched a first-ever $50-million Surplus Food Purchase Program designed to help redistribute existing and unsold inventories to local food organizations who are serving vulnerable Canadians, while avoiding food waste.

Other actions the Government has taken to support the sector include:

  • invested $40 million for the Canadian Food Inspection Agency (CFIA) to support critical food inspection during the pandemic and address back-logs caused by closures of processing facilities due to COVID-19 breakouts;
  • launched an online job portal to connect Canadians to diverse jobs in the agricultural sector; and,
  • committed $9.2 million to fund more jobs in the sector for young people through the Youth Employment and Skills Program. In addition, the Fall Economic Statement announced $575.3 million over the next two years and Budget 2021 announced $109.3 million in 2022-23 for the Employment and Social Development Canada-led Youth Employment and Skills Strategy, which includes funding for AAFC’s Youth Employment and Skills Program.
  • $371.8 million in new funding for Canada Summer Jobs through Budget 2021 in 2022-23 to support approximately 75,000 new job placements in the summer of 2022.
  • $239.8 million in 2021-22 through Budget 2021 to support work-integrated learning opportunities for post-secondary students. Funding would increase the wage subsidy available for employers to 75%, up to $7,500 per student, while also increasing employers’ ability to access the program. This is expected to provide 50,000 young people (an increase of 20,000) with valuable opportunities.

The government has also announced investments and support to the fish and seafood industry. These include:

  • $62.5 million for fish and seafood processors to protect their employees with personal protective equipment and adapt their plants to comply with health directives;
  • The Fish Harvester Benefit, a program worth up to $267.6 million, to help provide income support for this year’s fishing seasons to eligible self-employed fish harvesters and sharespersons crew who cannot access the Canada Emergency Wage Subsidy.
  • The Fish Harvester Grant, a program worth up to $201.8 million, to provide grants to help fish harvesters impacted by the COVID-19 pandemic, and who are ineligible for the Canada Emergency Business Account or equivalent measures.
  • Measures or changes to Employment Insurance (EI) that would allow self-employed fish harvesters and sharespersons to access EI benefits on the basis of insurable earnings from previous seasons (winter and summer claims).

Budget 2021 announced additional supports to help businesses and Canadians through the pandemic, such as:

  • A new Canada Recovery Hiring Program for eligible employers that continue to experience qualifying declines in revenues relative to before the pandemic. The subsidy would offset a portion of the extra costs employers take on as they reopen, either by increasing wages or hours worked, or hiring more staff;
  • Extension of the Canada Emergency Wage Subsidy until May 2022;
  • Extension of the Canada Emergency Rent Subsidy and lockdown support until May 2022;
  • Establish a federal minimum wage of $15 per hour, rising with inflation, with provisions to ensure that where provincial or territorial minimum wages are higher, that wage will prevail.
  • Improvement to the Canada Small Business Financing Program through amendments to the Canada Small Business Financing Act and its regulations;
  • $700 million over three years for the Regional Development Agencies to support business financing; and.
  • A new agency for British Columbia with $553.1 million over five years to ensure businesses in B.C. can grow and create good jobs for British Columbians.

The Government also provided a number of economy-wide measures, at the onset of the pandemic, which have or are now nearing completion, including:

  • increased lending capacity, including the Canada Emergency Business Account, the SME loan and guarantee program and the mid-market financing and guarantee program, which provides direct lending and other types of financial support to help Canadian businesses obtain financing during the current period of significant uncertainty;
  • $2 billion for a Regional Relief and Recovery Fund for regional development agencies to support businesses that may require additional help to recover from the COVID-19 pandemic, but have been unable to access existing support measures;
  • up to $3 billion in federal support to top up wages for essential workers, including those working hard to make sure that there that is food on our shelves;
  • the Canada Emergency Response Benefit which provided a taxable benefit of $2,000 a month for up to 28 weeks for those who were in need of temporary income support. The program ended on September 26, 2020, however, those still needing support were transitioned from the CERB to EI or to the new Canada Recovery Benefit (CRB) for those who are not eligible for EI benefits. The CRB provided $500 per week for up to 38 weeks for those who have stopped working and who are not eligible for EI, or had their employment/self-employment income reduced by at least 50% due to COVID-19. CRB ended October 23, 2021 and the government proposed the Canada Worker Lockdown Benefit that would provide $300 a week to eligible workers who are unable to work due to a local lockdown anything between October 24, 2021 and May 7, 202;
  • $9 billion in support to students which included the Canada Emergency Student Benefit, which provided $1,250 to $2,000 per month to eligible students from May through August, 2021; and,
  • a large Employer Emergency Financing Facility to provide bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.

Federal, Provincial and Territorial Ministers continue to meet regularly to discuss the impacts being faced by the sector and what supports can be provided to Canadian producers and processors in response to the COVID-19 crisis.

COVID-19: Impacts on the sector and government response

Context

The COVID-19 pandemic created substantial disruptions and challenges for the entire agriculture and agri-food value chain. Issues were wide-ranging and included: lost markets for many products when initial closures occurred, increased operating costs resulting from new health and safety requirements and from supply-chain disruptions, temporary processing backlogs due to plant outbreaks, and labour shortages.

Supply chain disruptions also created challenges of surplus food for some products, while at the same time contributing to concerns about increased food insecurity for vulnerable populations. While these challenges were difficult to navigate, the sector largely adapted and governments acted to provide support throughout the pandemic.

Background

The Minister of Agriculture is responsible for identifying and preparing for risks related to the agriculture and agri-food sector. Throughout the pandemic, stakeholders requested various kinds of support from Agriculture and Agri-Food Canada (AAFC) and the Government of Canada, including:

  • financial support (e.g., direct payments to producers and processors to compensate for increased costs, support to emergency foodservice organizations, etc.);
  • assistance in meeting new health and safety requirements (e.g., access to personal protective equipment, targeted public health guidance and communication);
  • flexibility in regulatory compliance (e.g., flexible labelling requirements not related to food safety to allow surplus food labelled for the food service sector to be sold at retail);
  • enhancements under existing agricultural programming (e.g. increasing the eligibility and reach of AAFC’s suite of Business Risk Management Programs).
  • In response to some of the issues facing the sector and Canadians, the Government of Canada created a number of new programs and adapted existing programs to respond to the needs of the agriculture and
  • agri-food sector, complementing other pandemic measures of general application (e.g., the wage subsidy for businesses).

Economic pressures

The pandemic resulted in significant economic pressures, such as increased operating costs and lost sales, in some parts of the sector. A number of initiatives were put in place to help the sector manage these challenges, including:

  • AAFC issued Stays of Default under the Advance Payments Program (APP) to ensure that farmers have the flexibility they need to manage their cash flow when facing lower prices or reduced marketing opportunities. As well, eligible farmers who still had interest-free loans outstanding had the opportunity to apply for an additional $100,000 interest-free portion for 2020–21, if their total APP advances remain under the $1-million cap. There is some flexibility for the Government to provide a Stay of Default for outstanding loans, if the administrators make a request and a payment default is pending.
  • In 2020, Farm Credit Canada (FCC) received an enhancement to its capital base that allowed for an additional $5 billion in lending capacity to support producers, agribusinesses and food processors. This enhanced capital remains in place.
  • Agriculture and Food Business Solutions Fund – A $100-million FCC venture capital fund to provide companies with the stability and flexibility they need to rebuild their business models.

Labour and worker safety

Labour remained a critical issue throughout the pandemic. Border closures and travel restrictions created concerns about access to temporary foreign workers (TFWs) and skilled technicians, particularly in the context of the spring planting season. An exemption allowing TFWs to continue to travel to Canada for work in the agriculture and processing sectors early in 2020 recognized the essential nature of this labour.

Evolving entry and public health requirements (e.g. quarantine) nonetheless introduced challenges for TFWs and their employers. Collaboration between governments and sector stakeholders resulted in the arrival of 85% of expected TFWs for the 2020 season and a record number of arrivals for 2021.

The following programs were introduced to support the safe arrival of TFWs, to further protect worker safety and help address labour shortages:

  • Mandatory Isolation Support for Temporary Foreign Workers (CLOSED) – AAFC-led, the program included two streams, the 14-Day Isolation Period Stream and the 3-Day Hotel Quarantine Stream. Further to the $84.4 million allocated in 2020–21 to assist with the cost of the mandatory isolation of temporary foreign workers, an additional $57.6 million was announced in Budget 2021 to help offset the costs associated with isolation requirements upon entering Canada and to create a second stream of the program to provide support of up to $2,000 per TFW for those who are required to quarantine in government-approved accommodations, before proceeding to their final destination. As of September 10, 2021, the 14-Day Isolation Period Stream had received 2,757 applications representing over $47.67 million in funding asks; 1,299 applications had been approved, representing over $24.14 million in federal funding. As of September 10, 2021, the 3-Day Hotel Quarantine Stream had received 147 applications, representing over $2.05 million in funding asks; 89 applications had been approved, representing over $1.37 million in federal funding.
  • Emergency Processing Fund (CLOSED) – AAFC-led, one-time federal investment of up to $77.5 million to help companies implement changes to safeguard the health and safety of workers and their families due to the impacts of the COVID-19 pandemic. The program received an additional $10 million of unallocated internal funds, for a total of $87.5 million in funding. The program also provided funding for companies to improve, automate and modernize facilities needed to increase Canada’s food supply capacity during COVID-19. The program approved its last project in spring 2021. The program supported a total of 562 projects (national and third-party delivery) with a priority to fund projects related to worker health and safety and those in the meat processing sector.
  • Emergency On-Farm Support Fund (CLOSED) – AAFC-led, $41 million to boost protections for domestic and TFWs and address COVID-19 outbreaks on farms. The program received a total of 1,780 applications (through both provincial and federal components), and approved 1,471.
  • Youth Employment and Skills Program – AAFC-led, increased funding to existing program, adding $9.2 million in additional funding for 2020–21 to help cover the costs of hiring youth for agricultural jobs, providing additional labour support during the pandemic. As of September 10, 2021, 2,823 applications requesting approximately $27.2 million had been received with 1,948 projects approved, for a total commitment amount of approximately $19.2 million.

Supporting processing and managing backlogs

The pandemic also had impacts on the processing sector, where outbreaks led to temporary closures or reduced operational capacity. AAFC and the Canadian Food Inspection Agency (CFIA) worked closely with industry stakeholders and provincial/territorial governments throughout the pandemic to ensure the safe supply of food and trade in agricultural goods. Programs and supports included:

AgriRecovery – AAFC-led, $125 million to launch national AgriRecovery initiatives to help producers faced with extraordinary costs incurred as a result of COVID-19, including set-asides for cattle- and hog-management programs, to manage livestock backed-up on farms due to the temporary closure of food-processing plants.

In addition to providing temporary compliance flexibility and special provisions, CFIA activities included:

  • prioritizing critical activities, such as meat inspection, food safety investigations and recalls, animal-disease investigations, laboratory testing and export certification;
  • establishing resource-sharing agreements with provinces to ensure that there was enough staff to deliver critical inspection services in federal and provincial establishments;
  • providing frontline staff with the flexibility to adjust service delivery as needed to align with the COVID-19 situation at a given time and place.
  • actively engaging in research on novel coronavirus susceptibility of food animals (such as chicken, turkeys and pigs), as well as monitoring global Coronavirus research to determine the risk of COVID-19 transmission through food to ensure confidence in food supply and maintain trade in food products.
  • providing expertise to intergovernmental organizations, such as World Organisation for Animal Health (OIE), to better understand the virus causing COVID-19 and to develop guidance to countries for safe trade of animals and animal products.

In 2020–21, CFIA also received a $20-million investment to respond to emerging vulnerabilities in inspection capacity for food, plant, and animal products in light of COVID-19 and to ensure an adequate, reliable food supply for Canadians. The $20 million investment was then renewed in 2021- 22 to maintain required inspection capacity in meat slaughter and processing facilities due to the COVID-19 resurgence.

Food surpluses and food insecurity

Food surplus and availability was another challenge during the pandemic, with a mix of surpluses in some areas and shortages in other areas. For example, in some jurisdictions, public-health restrictions at times required full and partial closures of businesses, including those in the foodservice sector, which immediately decreased the demand for restaurant food. This reduced market demand for some products resulted in a surplus of some types of food, such as potatoes generally used in making French fries. At the same time, millions of Canadians were experiencing job losses or reduced work hours, resulting in increased financial pressures and food insecurity. The following programs responded to issues of food surpluses and food insecurity:

  • Emergency Food Security Fund (Local Food Infrastructure Fund) – AAFC-led, $300 million (three rounds of funding of $100 million each) to support Canadian food banks and other national food-rescue organizations to help improve access to food for people experiencing food insecurity in Canada due to the COVID-19 pandemic. Indigenous Services Canada was provided with $30 million from this funding to bolster its Indigenous Community Support Fund. As of August 4, 2021, under the first two rounds of funding, the Fund had supported more than 4,800 local food initiatives across Canada, including over 1,080 directly supporting Indigenous organizations and communities. Of the additional $140 million in emergency funding announced in Budget 2021, $100 million has been allocated to the Emergency Food Security Fund (round 3 of funding), $10 million has been allocated to the Local Food Infrastructure Fund and $30 million has been set in reserve for future considerations. This additional funding needs to be fully distributed by March 31, 2022.
  • Surplus Food Rescue Program (CLOSED) – AAFC-led, $50-million investment for a time-limited program to help manage and redirect existing surpluses to organizations addressing food insecurity and to avoid food waste. The program received 38 applications, and approved 9.
  • Additional borrowing capacity of $200 million for the Canadian Dairy Commission to increase its purchases of cheese and butter, and to help producers avoid wasting food.
  • In 2020, CFIA temporarily exercised enforcement flexibility for non-food safety labelling requirements for foodservice packaged products in order to help support the economy, alleviate supply disruptions in Canadian grocery stores, and avoid food waste.

Considerations and next steps

Despite significant challenges resulting from the pandemic, the sector performed relatively well throughout 2020 and into 2021, ensuring a continued supply of food products for Canadians. Programming supports from AAFC, CFIA and other Government of Canada emergency programs helped the sector to remain resilient in the face of the pandemic.

In addition to the risks and challenges traditionally facing the sector (e.g. production, markets, weather), the COVID-19 pandemic exacerbated known challenges, such as labour availability and vulnerability to supply-chain disruptions, as well as required action by AAFC in new areas, such as in the distribution of food to vulnerable groups in response to food insecurity concerns. While most emergency programming has closed or has expiring funding, the pandemic has brought more attention to Canada’s food supply and self- sufficiency, and food-security challenges at both the national and local levels, as well as greater attention to the resilience of the food supply chain.

Lessons from the pandemic continue to inform AAFC policy priorities, including improving access to labour for the sector, enhancing Canada’s food systems as part of the Food Policy of Canada and Canada’s submission to the United Nations for the UN Food Systems Summit, as well as federal-provincial-territorial priorities for sector investments under the next policy framework.

Food policy

Background

In June 2019, AAFC launched the Food Policy for Canada, with the vision that all people in Canada are able to access a sufficient amount of safe, nutritious, and culturally diverse food, and that Canada’s food system is resilient and innovative, sustains our environment, and supports our economy.

The Food Policy for Canada seeks to create healthier and more sustainable food systems in Canada. The Food Policy brings a coordinated approach to addressing food issues in Canada by building stronger linkages across existing federal initiatives that affect food. During Food Policy consultations, food security was identified as a priority issue that required greater government attention.

Through the Food Policy for Canada, the Government of Canada invested an initial $134.4 million in new programming, including support to improve food security outcomes through AAFC’s Local Food Infrastructure Fund and CANNOR’s Northern Isolated Community Initiatives Fund.

  • The Local Food Infrastructure Fund (5-year, $60-million initiative 2019 to 2024), supports community-based initiatives that increase access to food, and provide social, health, environmental, and economic benefits in communities across Canada.
  • The Northern Isolated Community Initiatives Fund (5-year, $15-million initiative 2019 to 2024) supports community-led projects for local and Indigenous food production systems with an emphasis on innovative and practical solutions to increase food security across the North.

Food insecurity

Background

While the Food Policy for Canada seeks to improve food security by creating healthier and more sustainable food systems, the Government’s actions during the pandemic largely focused on addressing food insecurity, which is predominantly determined by economic access to food.

During COVID-19 several Government of Canada initiatives were put in place with either a primary purpose or the flexibility to address immediate food insecurity challenges. AAFC implemented the Emergency Food Security Fund and the Surplus Food Rescue Program that enabled organizations working to address food insecurity to respond to increase needs at a time when they were required to adapt their models due to COVID-related restrictions and disruptions.

Before the pandemic, an estimated 12.7% of Canadian households experienced food insecurity, with rates particularly high for Black (28.9%), Indigenous off-reserve (28.2%), First Nations on-reserve (48%), and Nunavut (57%) households. Households with children headed by women are particularly at risk.

Emergency COVID-19 food insecurity support

During COVID-19, several Government of Canada initiatives were put in to support local, regional, and national organizations:

  • AAFC: $330 million under the Emergency Food Security Fund, including $30 million transferred to Indigenous Services Canada (ISC) to support food systems projects as part of the Indigenous Community Support Fund. This fund supports organizations working to address food insecurity to help improve access to food for people experiencing food insecurity in Canada due to the COVID-19 pandemic;
  • AAFC: $50-million Surplus Food Rescue Program to help redirect existing food surpluses to organizations addressing food insecurity, with a 10% target to northern communities;
  • ISC: $1.8-billion Indigenous Community Support Fund, with the flexibility needed for Indigenous leadership to design and implement community-based solutions to prevent, prepare and respond to the spread of COVID-19 within Indigenous communities;
  • ESDC: $350-million Emergency Community Support Fund to help community organizations serve vulnerable Canadians during the COVID-19 crisis;
  • Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC): an additional $25 million to enhance the Nutrition North food subsidy.

Responsive

  • Food insecurity is predominately an income issue for many Canadians. Early on in the pandemic, the Government enacted a number of financial supports including the Canada Emergency Response Benefit and the Canada Recovery Benefit to ensure that unemployed Canadians or Canadians with reduced incomes were supported.
  • As part of our response to the pandemic, the Government invested $330 million in the Emergency Food Security Fund to food banks and other community organizations, as well as $50 million in the Surplus Food Rescue Program, which helped redirect food surpluses to organizations addressing food insecurity.
  • Through the Food Policy, collaboration will continue across federal departments and agencies, and with partners and stakeholders to address root causes and improve access to safe, nutritious, and culturally diverse food.
  • The Government of Canada will continue to work with Indigenous partners to co-develop policies, programs, and initiatives that increase food security on and off reserve, such as local planning and infrastructure for community harvesting, processing, storage and transportation of foods, and other initiatives focused on nutrition and access to food.

Emergency Processing Fund

Background

On May 5, 2020 the Prime Minister announced the $77.5-million Emergency Processing Fund to help food producers and processors implement changes to safeguard the health and safety of workers and their families due to the impacts of the COVID-19 pandemic. The program is one part of the greater Government of Canada response to the COVID-19 pandemic.

Launched on June 12, 2020 the program provided funding support to help companies implement changes to adapt to health protocols, accommodate changes to processes and production as a result of COVID-19 and also supported investments to improve, automate and modernize facilities needed to increase Canada’s food supply capacity. The program prioritized investments to support health and safety measures, with a further priority for the meat processing sector. The program received an additional $10 million in reallocated internal funds.

The Emergency Processing Fund was delivered in partnership between Agriculture and Agri-Food Canada and four regional third party organizations. Third party organizations were responsible for proposals seeking less than $100,000.

  • Atlantic Canada: Perennia Food and Agriculture Inc.
  • Québec : Conseil de la transformation alimentaire du Québec
  • Ontario, Manitoba and Nunavut: Agricultural Adaptation Council
  • Alberta, Saskatchewan, British Columbia, Yukon and Northwest Territories: Investment Agriculture Foundation of BC

$20 million of the funding envelope was allocated to the third party organizations to administer and support measures that aligned with the objectives of the program. These organizations had independence to implement the program based on their delivery models and reflecting the demand for funds in each region.

The program supported a total of 558 projects for a total commitment of $87.5 million: 188 projects at the national level and 370 at the regional level.

Responsive

$87.5 million under the Emergency Processing Fund to help companies implement changes to safeguard the health and safety of workers and to improve, automate, and modernize facilities to increase Canada’s food supply capacity.

Priority to support investments for health and safety measures for workers, with a further priority to meat processors.

A total of 558 projects were funded under the program.

Emergency Food Security Fund

Background

In April 2020, the Government of Canada announced up to $100 million through the Emergency Food Security Fund to help national, regional, and local emergency food service organizations across Canada improve access to food for people experiencing food insecurity in Canada due to the COVID-19 pandemic.

In October 2020, an additional $100 million was announced to further support food security. From this funding, AAFC transferred $30 million to Indigenous Services Canada (ISC) to bolster its Indigenous Community Support Fund.

In April 2021, as part of Budget 2021, an additional $140 million was announced to provide continued support to emergency hunger relief organizations. Out of this funding, $130 million was allocated to the Emergency Food Security Fund; $100 million in August 2021 and $30 million in December 2021. The Local Food Infrastructure Fund received $10 million.

For the distribution of funds under the Emergency Food Security Fund, AAFC works with six national/regional food service organizations: Food Banks Canada, Second Harvest, Community Food Centres Canada, Breakfast Club of Canada, The Salvation Army and La Tablée des Chefs. These organizations further distribute funding to food banks and other local emergency food service organizations across Canada for activities such as purchasing food, buying equipment such as Personal Protective Equipment (PPE), transporting food, and hiring workers.

While the distribution of funds under the third round of the Emergency Food Security Fund is ongoing, more than 5,000 initiatives, including over 1,000 initiatives directly supporting Indigenous organizations and communities, were supported across Canada.

Responsive

  • Considering the need to act quickly to support the growing number of Canadians suffering from food insecurity due to the unprecedented COVID-19 pandemic, six organizations (Food Banks Canada, Second Harvest, Community Food Centres Canada, Breakfast Club of Canada, The Salvation Army and La Tablée des Chefs) were retained to further distribute funds to local organizations based on the size of their respective network and capability to quickly redistribute funds on a regional and national scale.

Surplus Food Rescue Program

Background

Especially at its onset, COVID-19 caused significant disruptions to areas of Canada’s food system, as it forced the near closure of the restaurant and hospitality industry in Canada and the United States. Some producers across Canada were left with surpluses of quality food; at the same time, the demand for food from food banks and other food security organizations in communities across Canada had increased due to the pandemic.

In June 2020, the Government of Canada launched the $50 million Surplus Food Rescue Program to help redistribute highly perishable commodities to local food organizations serving vulnerable Canadians.

This time-limited program helped to redistribute surplus commodities that would have gone to waste, to fairly compensate agricultural producers and agri-food harvesters and processors, and to ensure the food reached vulnerable populations in Canada.

The program provided funding to not-for-profit and for-profit organizations to help them manage and redirect food surpluses that might otherwise spoil, go to waste, or fail to reach people facing food insecurity. The program’s funding allowed these organizations to bid on surplus products at or below the cost of production. The organizations could then either process the food into less-perishable forms (for example, by canning or freezing it) and/or distribute the products to agencies that were working to reduce food insecurity, to ensure that the food would reach vulnerable populations.

Based on their respective capacity to purchase, process and redistribute surplus food to local food serving organizations and communities, AAFC awarded contributions to the following nine organizations: Food Banks Canada, Second Harvest, La Tablée des Chefs, Les Fermes Dani, Canadian Produce Marketing Association, Green Seafoods Ltd., Clearwater Seafoods Ltd., Fisher River Cree Nation, and Baffin Fisheries Coalition.

Under the program, more than 7 million kilograms of food, including but not limited to potatoes, fish and seafood, veal, chicken, turkey and eggs, was redistributed to more than 1300 local food service organizations across Canada, including over 250 located in the North.

Responsive

Particularly at its onset, the unprecedented COVID-19 pandemic has had disruptive effects on the Canadian food system. In order to avoid the waste of large surpluses of perishable food and considering the necessity to act quickly to help a growing number of Canadians suffering from food insecurity, AAFC launched the Surplus Food Rescue Program, one of the tools used to support food organizations to buy, process and redistribute surplus food in communities most at risk.

Audit of agricultural’s COVID-19 programs related to temporary foreign workers

New December 3, 2021

Anticipated question

How does Agriculture and Agri-Food Canada plan on responding to the findings in the Office of the Auditor General’s report entitled, “Health and Safety of Agricultural Temporary Foreign Workers in Canada During the COVID-19 Pandemic”?

Response

  • Temporary foreign workers are an important part of Canada’s agricultural sector.
  • At the outset of the COVID-19 pandemic, Agriculture and Agri-Food Canada launched the Mandatory Isolation Support for Temporary Foreign Workers Program and the Emergency On-Farm Support Fund, to provide financial support to the sector as we implemented the new health and safety measures for temporary foreign workers.
  • The importance of the skills and labor that temporary foreign workers bring, was a key part of the agriculture sector’s resilience during the COVID-19 pandemic.

Responsive on employers that didn’t follow the health and safety requirements

  • Overall, majority of agricultural employers did respect the health and safety requirements, while it is unfortunate that some employers chose to not meet their obligations, as the Auditor General’s report highlights.
  • In the small number of instances where an employer did not meet their duty to sufficiently protect their employees, Agriculture and Agri-Food Canada has the ability to stop their payments, or to recover the funds they received.

Responsive on working with ESDC to ensure the health and safety of temporary foreign workers

  • Inspections were done by ESDC, and results as they related to AAFC programs were shared with the Department.
  • AAFC continues to work with ESDC to enhance systems and programs supporting TFWs. The health and safety of these workers are a priority.

Responsive on AAFC’s programs

  • The Mandatory Isolation Support for Temporary Foreign Workers Program ended on August 31, 2021. This was consistent with its purpose as a short-term emergency support for employers to help them offset the initial costs associated with public health requirements during the most acute COVID-19 crisis period.
  • The Emergency On-Farm Support Fund provided support to primary producers to implement measures to improve on-farm workplace health and safety, by assisting them with some of the incremental costs for activities that improve the health and safety of all farm workers, domestic and temporary foreign workers.

Audit of agricultural’s temporary foreign workers programs due to COVID-19

December 3, 2021

Background

Findings from the Office of the Auditor General’s Report

The Office of the Auditor General’s report entitled, “Health and Safety of Agricultural Temporary Foreign Workers in Canada During the COVID-19 Pandemic” mainly focused on inspections done by Employment and Social Development Canada (ESDC). Agriculture and Agri-Food Canada (AAFC) worked with ESDC when designing and launching programs to support TFWs ability to come and work safely in Canada during the COVID-19 Pandemic.

Problems were found with ESDC’s compliance inspection regime, and AAFC is implicated in the audit report as selected COVID-19 support programs it managed, the Mandatory Isolation Support for Temporary Foreign Workers (MISTFWP) and the Emergency On-Farm Support Fund (EOFSF) both used the results of those inspections to verify that their recipients were not involved in non-compliance events.

AAFC will appear to have distributed funding to employers who did not obey regulations. However, it is important to note that the MISTFWP objective was to minimize the impacts of the COVID-19 pandemic on food security in Canada by enabling Canadian employers to continue to hire temporary foreign workers as they may have been deterred to do so due to the additional costs associated with the Quarantine Act. Initial results demonstrate that the program successfully encouraged domestic employers to keep hiring foreign workers while preventing the spread of the COVID-19 virus and protecting workers health. Subsequently, AAFC continues to work with ESDC regarding employers non-compliance events and retains the ability to stop payments or recover funds, where applicable, on the most serious of violations (e.g., employee wages not paid, sexual, physical, psychological, and/or financial abuse).

In addition, as part of their application process, employers are required to provide an up-front attestation of certain eligibility criteria, and asked to maintain relevant documentation for a period of seven years that can be subject to auditing by AAFC. As such, ESDC shared results from these inspections with AAFC to identify instances in which employers were involved in non-compliance events related to health and safety regulations, to help inform corrective action or the rescinding of financial support.

ESDC credited the Emergency On-Farm Support Fund (EOFSF) as having helped ensure employers were better prepared to receive TFWs and address the risks of virus transmission for the 2021 season, AAFC is implicated in the audit report for not obtaining information on the program’s results to support this position. AAFC will appear to have not focused on the health and accommodation safety of TFWs, and instead focused on farm productivity.

It is important to note, farm productivity and maintaining staffing levels are considered a key indicator of how well the program supported the health and safety of workers in terms of their ability to continue to work throughout the pandemic. AAFC has surveyed EOFSF recipients on their ability to maintain productivity and staffing levels, comparing pre- and post-EOFSF funding. These survey results indicated that the majority of respondents maintained their levels of production after implementing EOFSF projects, while a significant number of respondents reported that they experienced an increase in the number of hours worked by their employees after implementing EOFSF projects.

Mandatory isolation support for Temporary Foreign Workers Program

On April 13, 2020, the Government of Canada announced $50 million for the Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) to help farmers, fish harvesters, and all food production and processing employers, put in place the measures necessary to follow the mandatory 14-day isolation period required of all workers arriving from abroad. In addition to the responsibility of paying the workers for the two weeks during which time they cannot work, many employers are also responsible for providing workers with transportation and accommodations, as well as access to food and basic supplies needed to meet all of the conditions imposed by public health authorities. The Fall Economic Statement committed to providing up to an additional $34.4 million to continue MISTFWP until March 31, 2021. The Program was further extended until April 21, 2021 which included eligible workers who arrived up until April 21, 2021 and covered eligible expenses until May 5, 2021.

On April 19, 2021, the Government of Canada released Budget 2021 which allowed the Program to be extended until August 31, 2021, with two streams:

  • 14-Day Isolation Period Stream helped offset incremental costs associated with the mandatory 14-day isolation period as well as pre-entry testing requirements imposed under the Quarantine Act on temporary foreign workers upon entering Canada. The maximum funding amount under this stream was $1,500 per TFW for arrivals between January 1, 2021, and June 15, 2021, and for eligible activities taking place between January 1, 2021, and June 29, 2021, (i.e. employers with workers coming in on June 15th are eligible for the $1,500). As of June 16, 2021, the maximum funding amount was reduced to $750 per TFW for arrivals between June 16, 2021 and August 31, 2021 and for eligible activities taking place between June 16th, 2021, and September 14, 2021, (i.e. employers with workers coming in on August 31 are eligible for $750).
  • 3-Day Hotel Quarantine Stream helped offset incremental costs specifically associated with the mandatory quarantine period at a government-authorized facility imposed under the Quarantine Act on temporary foreign workers upon entering Canada, when travel directly via private transportation from their point of entry to employer-provided accommodation for their mandatory 14-day isolation period could not be provided. The maximum funding amount under this stream was $2,000 per TFW for arrivals between March 21, 2021, and August 8, 2021, and for eligible activities taking place between March 21, 2021, and August 9, 2021. March 21, 2021, is the date the order came into effect for TFWs entering Canada and August 8, 2021 is the end date for this specific order.

As of February 4, 2022, a total of 7,720 projects were approved under the MISTFWP for $132.55 million in funding.

The Emergency On-Farm Support Fund

AAFC’s Emergency On-Farm Support Fund provided support to farmers for direct infrastructure improvements to living quarters and work stations, temporary or emergency housing (on or off-farm), as well as personal protective equipment (PPE), sanitary stations, work stations and any other health and safety measures to safeguard the health and safety of Canadian and temporary foreign workers from COVID-19.

Contributions under the AAFC-managed program were cost-shared 50:50 with the applicants up to $100,000. An additional 10 per cent was provided to women, youth, Indigenous Peoples, visible minorities, and persons with disabilities-owned farms (greater than 50% ownership) making the split 60:40. In Ontario, Quebec, Nova Scotia, and Prince Edward Island the province delivered the Fund, and in British Columbia, the B.C Investment Foundation (BCIAF), a third-party delivery agent delivered there.

As of March 31, 2021 (program end date), 1,645 applications were received by provincial and third- party delivery agents of the fund and 135 applications were received by AAFC for a total of 1,780 applications. Approximately $37.3 million in funding was requested from provincial and third-party delivery agents, and approximately $5.2 million was requested from AAFC (for a total of $42.2 million), of which $29.0 million was approved.

Office of the Auditor General audit, health and safety of agricultural temporary foreign workers in Canada during the COVID-19 pandemic

December 1, 2021

About

In March 2020, at the start of the Quarantine Act due to the COVID-19 pandemic, when the largest volume of agricultural temporary foreign workers to support Canada’s food security were due to arrive, an exemption order enabled them to enter Canada, subject to a 14 day quarantine and then testing/travel requirements. Federal funding was committed to help employers cover the costs.

Scope

Whether Employment and Social Development Canada (ESDC) and AAFC effectively managed the TFW program, including whether AAFC effectively managed the

  • Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP); and
  • Emergency On-Farm Support Fund (EOFSF).

Finding

AAFC was unable to confirm recipient eligibility for program funding, due to problems with the ESDC inspections. AAFC could recover funds later; however, this will not be possible due to ESDC inspection backlogs. AAFC is implicated in the audit report for relying on these inspections to verify MISTFWP and EOFSF recipients. However, it is important to note that the MISTFWP objective was to entice Canadian employers to still hire temporary foreign workers who may have been deterred due to additional costs imposed under the Quarantine Act and help address a domestic food security issue.

Recommendations

The audit report contained six recommendations:

  • None are directed towards AAFC
  • Six are directed towards ESDC

All ESDC recommendations have been accepted. AAFC is working with ESDC to complete assessments of program recipients’ eligibility. AAFC is also working with ESDC to stop payment or recover funds, where applicable, on the most serious of circumstances (e.g., employee wages not paid, sexual, physical, psychological, and/or financial abuse).

Conclusion: Because of ESDC’s 2020 and 2021 inspections poor quality, AAFC did not have assurance that employers approved for funding under MISTFWP and EOFSF met program conditions aimed at supporting safe quarantine and other health and safety measures for temporary foreign workers.

Media

This report is likely to generate media attention. Media focus is expected to be on ESDC’s lack of enforcement of standards related to housing and workers’ safety. Questions directed at AAFC are likely to focus on the MISTFWP, and whether the Department had adequate information from EDSC to make funding decisions under the program, as noted in the audit. The Department developed responsive messaging, focusing on AAFC oversight and accountability with regards to the MISTFWP. The Department will ensure a coordinated approach with ESDC on responding to media requests.

Special Examination—Report of the Auditor General to the Board of Directors of the Canadian Dairy Commission

Background

The Office of the Auditor General (OAG) must carry out a special examination of a Crown corporation at least every 10 years. On March 15, 2021, the OAG concluded its most recent examination of the Canadian Dairy Commission. The OAG included this report in its Fall 2021 Report to Parliament on December 9, 2021.

An audit of a Crown corporation examines the systems and practices that are key to providing it with reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively.

The OAG found that the CDC had good practices in managing its operations. It also identified areas for improvement in corporate management. The report found that a board vacancy outside the corporation’s control amounted to a significant deficiency in corporate governance. The deficiency put at risk the ability of the board of directors to make decisions — if a member was absent or had to declare a conflict of interest. The OAG noted that no board meetings were cancelled and no decisions were delayed as a result of this deficiency.

The recommendations included updating board member position profiles to support timely appointment processes by the Governor in Council; the development of performance indicators for each of its strategic objectives; and, integrating risk tolerances in corporate risk mitigation strategies.

The CDC accepted all recommendations and plans to address the OAG’s findings over the next year.

Speaking points

  • The CDC’s mandate is to provide efficient producers in the dairy industry with the opportunity of obtaining a fair return for their labour and investment, and to provide consumers with a continuous and adequate supply of high-quality dairy products.
  • The Report highlighted the CDC has strong management practices, including in its critical roles of informing national quotas, and establishing support prices.
  • The CDC has agreed to all three recommendations outlined in the Report and is taking the necessary steps to address the findings.
  • Governor-in-Council selection processes are led by the Government and are open, transparent, and merit-based.
  • While it is important that CDC board members have knowledge and experience in the dairy sector, they are subject to the Conflict of Interest Act.

Background information

One pager on Audit of Food Systems

OAG: AG opening statement, December 9, 2021

Audit report — Food Systems

News release, December 9, 2021

Anticipatory, should the Deputy Minister be asked about the Audit of Temporary Foreign Workers (TFW)

OAG: Audit report TFW

News release, December 9, 2021

Questions and answers from Office of Audit and Evaluation

Does AAFC conduct its own internal audits or evaluations on these topics?

The AAFC Office of Audit and Evaluation develops an annual five-year plan of its coverage of AAFC programs and activities, based on organizational risks and priorities, Treasury Board requirements and management needs.

This plan includes internal audits and program evaluations, which are similar to performance audits, as this one conducted by the OAG.

In the AAFC evaluations, the OAE examines GBA plus coverage in the Department, the performance management frameworks and performance indicators, as well as program effectiveness, in accordance with the TBS Policy on Results, as well as the Directive on Results (A.2.5.6, A.2.5.10).

The OAE provides regular advice and assessments on departmental data and information to enable it to evaluate the results of AAFC programs.

We recognize, as was noted by the OAG, that we still have work to do to improve our data collection and performance reporting, including in areas of GBA plus.

Are there any audits/evaluations that have looked at Food Systems?

The Office of Audit and Evaluation has not examined Food Systems.

The OAE works closely with the OAG to share coverage of departmental topics. When the OAG is looking at a topic, we do not overlap in coverage.

However, the OAE is auditing ████████████████████████████ process for ██████████████████████ and is conducting in the near future various evaluations on ████████████████████████████████.

Lessons learned from the Food Systems Audit will continue to be taken into consideration as AAFC designs the GBA Plus and performance areas of its programs.

Recommendations and Management Action Plan Follow-Up

The Office of Audit and Evaluation will follow-up twice a year on the status of the implementation by AAFC of its commitments to this audit.

The results will be reported to the AAFC Departmental Audit Committee and will be shared with the OAG when they conduct their management action plan follow-up with AAFC.

Standing Committee on Public Accounts

Chair
Tom Kmiec
Calgary Shepard
Conservative
Vice-chairs
Jean Yip
Scarborough–Agincourt
Liberal
Nathalie Sinclair- Desgagné
Terrebonne
Bloc Québécois
Members
Valerie Bradford
Kitchener South–Hespeler
Liberal
Riichard Bragdon
Tobique–Mactaquac
Conservative
Michael Cooper
St. Albert–Edmonton
Conservative
Blake Desjarlais
Edmonton–Griesbach
NDP
Han Dong
Don Valley North
Liberal
Peter Fragiskatos
London North Centre
Liberal
Philip Lawrence
Northumberland–Peterborough South
Conservative
Brenda Shanahan
Châteauguay—Lacolle
Liberal

Member profiles

Tom Kmiec, Calgary Shepard, Alberta, Conservative

Tom Kmiec was first elected to represent the riding of Calgary Shepard, AB, in 2015.

Born in Poland, Tom Kmiec immigrated to Canada in the mid-1980s.

He is the former national conservative caucus chairman in the 43rd Parliament and served previously on the finance and foreign affairs committees. Tom has championed greater awareness for persons with rare disorders as well as tax fairness for persons with disabilities. He has also worked on legislation governing equalization and transfers as well as bereavement leave for parents of underage children.

He studied at Concordia University in Montreal and obtained a Master’s degree from Regent University in Virginia, USA.

He has served for cabinet ministers both provincially and federally. He is a past policy manager with the Calgary Chamber of Commerce and the past registrar for the human resources profession in the province of Alberta. He is also a past board member with the Kidney Foundation of Canada’s southern Alberta chapter and a 2-time Kidney Marcher. Tom is a father of three living kids and lost a daughter to a rare condition called Patau Syndrome in 2018.

Parliamentary roles

Deputy House leader of the official opposition

Committee membership

Chair - PACP- Standing Committee on Public Accounts

Member - LIAI - Liaison Committee

Jean Yip, Scarborough–Agincourt, Ontario, Liberal

Jean Yip was first elected to represent the riding of Scarborough—Agincourt, ON, via by-election, in 2017.

Jean was born in Scarborough, and raised in Agincourt, and has deep roots in her community. Jean’s mother and father immigrated to Canada, and she grew up in Agincourt surrounded by their values of hard work, family, and compassion – values which she now instills in the three sons she raised with her late husband, Arnold Chan.

After completing her degree at the University of Toronto, Jean pursued a career in insurance and underwriting, becoming a team leader in her field. Jean holds the Fellow Chartered Insurance Professional Designation.

Prior to becoming an MP, Jean has focused on her community and her family, stepping up to serve Scarborough—Agincourt. She has taught Sunday school at her church for over 13 years, and has been involved with the STEM Fellowship Board of Directors which promotes computer literacy and programming capacity among youth.

Committee membership

Vice-Chair - PACP - Standing Committee on Public Accounts

Nathalie Sinclair-Desgagné, Terrebonne, Quebec, Bloc Québécois

Nathalie Sinclair-Desgagné was elected for the first time to represent the riding of Terrebonne in 2021.

Nathalie Sinclair-Desgagné is an experienced economist with an international background. After working for the European Investment Bank and PWC London, she decided to return home to Quebec in 2017 to pursue her career in the Quebec business world. A graduate of McGill and Oxford universities, she continued her academic work by contributing to several books and giving master’s level courses at the École Normale Supérieure de Paris.

Specializing in economic development combined with the environment, Nathalie Sinclair-Desgagné wishes to use her experience in advising businesses and her background in economics to serve all Quebecers, and more specifically the citizens of the riding of Terrebonne.

Committee membership

Vice-Chair - PACP - Standing Committee on Public Accounts

Valerie Bradford, Kitchener South–Hespeler, Ontario, Liberal

Valerie Bradford was first elected to represent the riding of Kitchener South- Hespeler, ON, in 2021.

As a single mother of three adult children, Valerie understands the challenges that families face, as they juggle responsibilities at home, finances, and careers.

Making ends meet was never easy, but growing up on a dairy farm near Dunnville, Ontario, she learned the value of hard work and responsibility at a young age.

Valerie has spent the last 15 years supporting small businesses and bringing jobs and investments to the Waterloo Region as an economic development professional for the City of Kitchener. She is the current Chair of the Workforce Planning Board, serving for the past eight years. With extensive knowledge of the local economy and experience with workforce development, Valerie is well-equipped to help the region recover from the hardships caused by the COVID-19 pandemic.

Since moving to the Waterloo region 17 years ago, Valerie has been a dedicated volunteer with multiple local organizations. She has been a member of the Kitchener South–Hespeler Federal Liberal Riding Association Board since 2016, most recently serving as its Policy Chair.

Committee membership

Member - PACP - Standing Committee on Public Accounts

Member - SRSR - Standing Committee on Science and Research

Member - SSRS - Subcommittee on Agenda and Procedure of the Standing Committee on Science and Research

Richard Bragdon, Tobique–Mactaquac, New Brunswick, Conservative

Richard Bragdon was first elected to represent the riding of Tobique— Mactaquac, NB, in 2019.

Richard Bragdon brings nearly 25 years of experience in working with the public in roles such as: A Realtor, Vice President of a non-profit/charitable organization, a Pastor, an Executive Director of an agricultural management service provider, and volunteer. Richard has also served on various Boards and advisory councils for both charitable and governmental organizations. Richard has also recently served as the elected Conservative Party of Canada National Council Member for New Brunswick.

Whether it is assisting people or businesses in making wise property investments, volunteering with a local First Nations’ Community Outreach, assisting those struggling with mental health and addiction related issues, as well as working with Seniors, Richard has clearly demonstrated with years of dedicated and faithful service, his desire to improve the lives of those in his region especially the less fortunate, marginalized, and vulnerable.

Richard has lived, most all of his life in Tobique-Mactaquac. Born in Woodstock, raised in Hartfield (the Nackawic area), he currently resides in Keswick Ridge with his wife Crystal and their three children, Vada 13, Walker 11, and Mariah 5. Richard enjoys spending time with his family and friends, his work, reading, watching hockey, and fishing.

Committee membership

Member - PACP - Standing Committee on Public Accounts

Michael Cooper, St. Albert–Edmonton, Alberta, Conservative

Michael Cooper was first elected to represent the riding of St. Albert— Edmonton, AB, in 2015.

In the last Parliament, Michael served as the Official Opposition Deputy Shadow Minister for Justice. He also served as Vice- Chair of the Standing Committee on Justice and Human Rights and Vice-Chair of the Special Joint Committee on Physician- Assisted Dying.
Michael is a strong advocate for victims and strengthening Canada’s criminal justice system and works tirelessly to hold the Liberal government accountable.

Michael is a lifelong resident of St. Albert and an active community volunteer. He is a Lector at St. Albert Catholic Parish and a member of the Knights of Columbus, St.

Albert Rotary Club and the St. Albert and District Chamber of Commerce.

A graduate of the University of Alberta, Michael received a Bachelor of Arts and a Bachelor of Laws, both with distinction. He was called to the Alberta Bar in 2010. Prior to being elected Michael worked as a civil litigator at a leading Edmonton law firm.

Committee membership

Member - PACP - Standing Committee on Public Accounts

Blake Desjarlais, Edmonton–Griesbach, Alberta, NDP

Blake Desjarlais was first elected to represent the riding of Edmonton Griesbach, AB, in 2021.

Blake Desjarlais (he/him) was born in ᐊᒥᐢᑲᐧᒋᕀᐋᐧᐢᑲᐦᐃᑲᐣ (Edmonton) and raised in the Fishing Lake Metis Settlement.

Blake made history in September 2021 when he was the first openly Two-Spirit person and Alberta’s only Indigenous Member of Parliament to have been elected to the House of Commons.

Blake currently serves as the Caucus Vice Chair and Critic for Treasury Board, Diversity and Inclusion, Youth, Sport and Post-Secondary Education. Blake is the Deputy Critic for 2SLGBTQI+ Rights and Immigration, Refugees and Citizenship.

Blake is proud to call the Boyle Street neighbourhood in Edmonton Griesbach home.

Committee membership

Member - PACP - Standing Committee on Public Accounts

Han Dong, Don Valley North, Ontario, Liberal

Han Dong was first elected to represent the riding of Don Valley North, ON, in 2019.

Raised and educated in Toronto, Han, his sister, and his parents immigrated to Canada from Shanghai in the early 1990's. Growing up working at his parent’s 24-hour coffee shop, Han learned the value of hard work, family, and community which ultimately lead him to public service.

Prior to being elected to the House of Commons in Ottawa, Han served as a Member Provincial Parliament (MPP) at Queen’s Park from 2014-2018, standing up for public education, and consumers rights.

A passionate advocate for his Community, Han has continuously stood up for the residents of Don Valley North, advocating for safer communities, easing traffic congestion, action to combat climate change, and housing affordability.

Han and his wife Sophie, are the proud parents of Emma and Matthew, and their extra-large dog Seesea.

Parliamentary roles

Member of the panel of chairs for the legislative committees

Committee membership

Member - PACP - Standing Committee on Public Accounts

Member - INDU - Standing Committee on Industry and Technology

Peter Fragiskatos, London North Centre, Ontario, Liberal

Peter Fragiskatos was first elected to represent the riding of London North Centre, ON, in 2015.

Prior to entering federal politics, Mr. Fragiskatos was a political scientist at King’s University College at Western University and a media commentator. His works have been published by major Canadian and international news organizations, including Maclean’s, The Globe and Mail, The Toronto Star, BBC News, and CNN.

Born in London, Ontario, Mr. Fragiskatos has combined his passion for politics with a desire to give back to his community. He has served on the boards of Anago (Non) Residential Resources Inc. and the Heritage London Foundation. An active volunteer, he ran a youth mentorship program and has worked with many local not-for-profit groups, such as the London Food Bank, the London Cross-Cultural Learner Centre, and Literacy London, a charity dedicated to helping adults improve their reading and writing skills.

Mr. Fragiskatos holds a Political Science degree from Western University, a master’s degree in International Relations from Queen’s University, and a PhD in International Relations from Cambridge University.

He lives in the riding of London North Centre with his wife, Katy, and his daughter, Ava.

Parliamentary roles

Parliamentary Secretary to the Minister of National Revenue

Committee membership

Member - PACP - Standing Committee on Public Accounts

Phillip Lawrence, Northumberland–Peterborough South, Ontario, Conservative

Philip Lawrence was first elected to represent the riding of Northumberland– Peterborough South, ON, in 2019.

In February of 2020, Philip tabled his Private Members Bill, C-206, An Act to Amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel).

Philip grew up on a horse farm, where he developed a love of horses and the outdoors. Prior to working in politics, Philip earned his BA in Political Science at Brock University. He went on to attend Osgoode Hall Law School and the Schulich School of Business to obtain his law degree and MBA. He started his practice in law with a focus on taxation and corporations. In 2008 he joined one of Canada’s largest financial institutions, becoming the third generation in his family to work in Financial Services.

Currently he lives in the charming community of Orono with his wife, Natasha, and two beautiful children.

Committee membership

Member - PACP - Standing Committee on Public Accounts

Brenda Shanahan, Châteauguay–Lacolle, Quebec, Liberal

Brenda Shanahan was first elected to represent the riding of Châteauguay— Lacolle, QC, in 2015.

Brenda holds an MBA, a Bachelor of Social Work and a Bachelor of History. During her career as a banker, social worker and financial educator, she provided counsel in financial management and developed financial literacy workshops and materials as well as being a commentator on financial issues for various media outlets.

A long-time resident of Châteauguay and mother of three adult children, Brenda has been involved in a number of organizations such as Amnesty International and the Canadian Federation of University Women.

Parliamentary roles

Caucus Chair

Committee membership

Member - PACP- Standing Committee on Public Accounts

Prior to becoming an MP, Jean has focused on her community and her family, stepping up to serve Scarborough—Agincourt. She has taught Sunday school at her church for over 13 years, and has been involved with the STEM Fellowship Board of Directors which promotes computer literacy and programming capacity among youth.

Committee membership

Vice-Chair - PACP - Standing Committee on Public Accounts