Agriculture Canada cutbacks contradict federal focus on jobs and innovation

Elimination of successful public/private partnership will hurt co-operatives' ability to leverage funds at provincial, community levels

OTTAWA, April 13, 2012 /Canada NewsWire/ - Representatives of Canada's co-operative movement say cutbacks at Agriculture and Agri-Food Canada run counter to the government's stated goals of creating jobs, promoting partnerships between the public and private sectors and fostering innovation. The announcement also calls into question the government's support for the United Nations International Year of Co-operatives, which Canada publicly endorsed when the UN resolution was adopted in 2009.

Canada's national co-operative associations have learned that the Co-operative Development Initiative (CDI), a program that has provided financial support for new and emerging co-operatives since 2003, will not be continued and that the Rural and Co-operatives Secretariat, the government office that administers programs related to co-operatives, will be significantly reduced in size.

The cuts come as the co-operative movement in Canada and around the world is celebrating the International Year of Co-operatives, which was proclaimed by the United Nations General Assembly to highlight the contribution co-operatives make to the economic and social development of communities. The 2009 UN resolution that proclaimed the International Year, which was supported by Canada, called on governments to take measures aimed at creating a supportive environment for the development of co-operatives.

"If the government is truly committed to creating jobs and fostering innovation, we can't understand why it would cut a program that cost very little - just over $4 million a year - and made a difference in hundreds of communities across the country," said Denyse Guy, executive director of the Canadian Co-operative Association (CCA), one of two national associations that jointly administers the CDI program on behalf of the government. "This program was a partnership between the public and private sectors; it created jobs, fostered innovation, and gave co-operatives the ability to leverage additional funds at the provincial and community levels."

"The cuts in the CDI program and the Rural and Co-operatives Secretariat send a very disturbing signal for all Canadian co-operatives," said Brigitte Gagné, executive director of the Conseil canadien de la coopération et de la mutualité, which co-manages the program with CCA. "We view this as a lack of recognition of the importance of co-operatives in job creation and economic growth in this country. We don`t understand this decision, in light of the program's success. We are now waiting for a concrete gesture on behalf of the Harper government to show its support for the co-operative sector."

Co-operative Development Initiative

The Co-operative Development Initiative is a unique federal program devoted to co-operatives. This program, whose objective is to stimulate the creation and expansion of co-operative enterprises, has supported the creation of more than 300 new community-based co-operatives since its inception in 2003. Over the past three years, CDI has provided advice and assistance to more than 1,600 groups interested in developing co-operatives and has aided the development of 700 existing co-operatives. In several provinces, CDI provides the only funding available for the development of co-operatives.

Rural and Co-operatives Secretariat

The Rural and Co-operatives Secretariat provides an essential link between the government and the co-operative sector. Staff reductions in the Secretariat will severely affect the dialogue between Canada's 9,000 co-operatives and the federal government. The budget cuts to the Secretariat will also have a direct impact on the promotion of the co-operative model and the coordination of federal government programs related to co-operatives.

Co-operatives in Canada

Canada's 9,000 co-operatives have more than 18 million members, 155,000 employees, annual revenues of more than $50 billion and assets of more than $370 billion. Canadian co-operatives are represented by two national associations, the Canadian Co-operative Association (CCA) and the Conseil canadien de la coopération et de la mutualité (CCCM).

Report confirms agriculture continues to drive Canadian economy

GUELPH, Ontario March 28, 2012 – Ontario Federation of Agriculture (OFA) - The recent annual report An Overview of the Canadian Agriculture and Agri-Food System 2012, published by Agriculture and Agri-Food Canada confirms the Ontario Federation of Agriculture’s (OFA) position that agriculture is a driving force in Canada’s economy.

The report, released March 26, provides an economic overview of the Canadian agriculture and agri-food system, and confirms the sector is becoming increasingly innovative, productive, integrated, competitive and modern. Economic and employment statistics show the agriculture and agri-food industry provided one in eight jobs in 2010 and employed more than 2 million people, an increase of 14 per cent between 1997 and 2010. The industry also accounted for more than eight per cent of the total Gross Domestic Product (GDP), a significant contribution to both federal and provincial economies.

“There’s never been a better time to highlight agriculture’s significant contribution to our economy,” says Mark Wales, OFA President. “Our industry has seen nothing but expansion, increased efficiencies and productivity and modernization, and we’re proud to see the report results reflect these positive changes.”

The annual report shows Canadians still enjoy some of the lowest food costs in the world, with food spending from stores accounting for almost 10 per cent of personal household expenditures in recent years. The food and beverage industry also accounts for significant contributions adding value and transforming primary production. In fact, 38 per cent of agricultural production is used as raw material inputs by the food processing industry, making it the most important manufacturing industry in Canada in 2010.

The agriculture and agri-food system is also a major employer in most provincial economies, contributing to jobs and economic activity. In Ontario, the agri-food industry contributes $33 billion to the provincial economy every year, provides jobs for 700,000 people and pays $7 billion in wages.

OFA looks forward to continuing to build agriculture’s economic role by working closely with the new Jobs and Prosperity Council, recently announced in the Ontario provincial budget. The Council will provide advice to the government on a new fund to support productivity growth and job creation in the business sector. OFA will work with the Ontario government to support farm businesses, encourage further productivity and an even greater economic contribution from agriculture.

The Ontario Federation of Agriculture (OFA) is the largest general farm organization in Ontario, representing 37,000 farm families across the province. As a dynamic farmer-led organization based in Guelph, the OFA works to represent and champion the interests of Ontario farmers through government relations, farm policy recommendations, lobby efforts, community representation, media relations and more. OFA is the leading advocate for Ontario’s farmers and is Ontario’s voice of the farmer.