Canada OKs aid for food industry
OTTAWA Canada will invest $252 million to help farmers and food processors weather the coronavirus outbreak, Prime Minister Justin Trudeau said on Tuesday, but industry groups say the funding falls far short of what is needed.
The Canadian Federation of Agriculture, one of Canada’s biggest farm groups, asked last week for 10 times the amount that was approved, an initial $2.6 billion in emergency funding, to cover industry losses and costs.
“We know that farmers still have concerns about what this pandemic means for their industry longterm,” Trudeau said.
The government is working with everyone involved to find lasting solutions, he said.
“This is an initial investment and if we need to add more, we will.”
While some provinces are beginning to reopen after lockdowns to fight the coronavirus, demand for many food products has dropped since mid-March, with most restaurants and bars closed.
Industry groups immediately called for more.
“If your house is burning down and I offered you a bucket of water to put it out, you’re probably going to have an issue,” said Canadian Federation of Agriculture president Mary Robinson in an interview with CTV News.
About 40 per cent of small- and medium-sized businesses in the farm and food sector have seen a significant demand drop, Canadian Chamber of Commerce president Perrin Beatty said.
Tuesday’s announcement, he said, was a “first step,” but falls “short of what the sector needs and will lead to delays in the ability of agriculture firms to address the impacts of COVID-19.”
Several food processing plants, primarily in the meat industry, have had to temporarily shut down after workers became infected with COVID-19.
Trudeau said beef and pork producers, who have been forced to keep livestock on farms longer because of processing shutdowns, will receive $125 million in disaster relief funding.
Food processors will get $77 million, while the Canadian Dairy Commission will see its credit increased to $200 million.
A first-ever food surplus purchase program valued at $50 million will buy large quantities of products like potatoes and mushrooms that will be redistributed to food banks.
The dairy-processing industry will be getting its own funds to buy up more milk and related products.