FEDERAL-PROVINICIAL-TERRITORIAL COMMUNIQUÉ

MINISTERS OF AGRICULTURE MAKE PROGRESS ON KEY ISSUES AT ANNUAL CONFERENCE

Brudenell, Prince Edward Island, September 22, 2004 – The challenges and opportunities facing Canada's agriculture and agri-food industry were discussed at the annual conference of federal, provincial and territorial Ministers of Agriculture, which took place in Brudenell from September 20-22, 2004. Progress was made on a number of key issues aimed at ensuring the long-term viability of the sector.

Ministers discussed advancing the "Made in Canada" strategy to reposition Canada's cattle and ruminant industry. Announced on September 10, the strategy is aimed at ensuring the long-term viability and profitability of the industry by increasing slaughter capacity in Canada, sustaining the cattle industry until capacity comes online and expanding access to export markets for both livestock and beef products.

Ministers reviewed progress to date in Canada's response to BSE and, in particular, directed officials to examine short and long-term options for the handling, alternate use, and disposal of animal waste, including specified risk materials, as Canada moves forward with changes to its feed regulations.

Ministers discussed the need for regional flexibility in the implementation of the strategy to reposition Canada's cattle and ruminant industry. They agreed that flexibility within the context of maintaining the integrity of program principles and objectives can be accommodated.

Ministers also discussed the issue of program affordability and agreed to continue to work and meet together collectively to address this important concern.

Ministers established a structure for the Annual Review process of the Agricultural Policy Framework (APF). This Review is regarded by industry and governments as an integral component of the APF; it serves to enrich the policy dialogue and establishes an ongoing process for continuous improvement of programs. The Review will be guided by several principles including partnership between governments and industry, transparency, and independence to achieve objective results. Ministers underlined that the industry will be invited as a full partner in the Review.

Ministers agreed to extend the 1/3 simplified deposit for the Canadian Agricultural Income Stabilization Program for the 2004 stabilization year, and to extend the deadline by which deposits must be made to March 31, 2005. They reaffirmed that active risk management is an important principle of the APF. Recognizing concerns raised by industry around the current deposit option, they directed officials to review alternative approaches.

Ministers also discussed the development of a comprehensive approach to coordinating policy direction and decision-making on food issues to further strengthen the existing foundation for consumer confidence, health protection and economic growth. Ministers committed to working with their Health colleagues on a possible National Food Policy Framework that would benefit all Canadians. Further discussions on the development of a possible Framework will be engaged in the coming months. Ministers requested to see a draft of a possible Framework for their consideration at the 2005 Annual Conference.

The ongoing World Trade Organization negotiations related to agriculture were also a focus of discussion. Ministers underscored their commitment to work collaboratively in support of a level international playing field that promotes fair competition among producers and processors from all countries. They also reiterated their support for the right of producers to choose to use orderly marketing systems such as supply management and the Canadian Wheat Board.

Ministers discussed the potential impact of the current countervail and anti-dumping actions against the Canadian hog industry by the United States. Ministers reaffirmed their commitment to an aggressive defense of the Canadian hog industry.

Ministers received a presentation on alternative land use services. Recognizing the importance of producer environmental land stewardship, officials were directed to continue with public policy discussions on environmental objectives as outlined in the APF, and to further explore the potential of various policy tools and mechanisms that could be used to achieve those objectives.

Minister MacAdam was thanked for hosting this year's meeting. The next Annual Conference will be held at Kananaskis, Alberta, in July 2005.

-30-