Agriculture committee  That is something that the Competition Bureau could do, but I don't know if it's necessary right now. We are recommending that relations between suppliers and their customers, that is to say distributors and retailers, be stabilized. We all know that food distributors and retailers are also being hit by the cost of inflation.

Agriculture committee  Obviously, there should be transparency. We should indeed have more data on all of the costs throughout the supply chain.

Agriculture committee  You're right. I'll let my colleague Mr. Fraeys answer your question.

Agriculture committee  I personally believe that we need support for the implementation of a best practices code for major retailers, distributors and suppliers. I'll let my colleague Mr. Fraeys tell you about our recommendations which apply specifically to the labour shortage and temporary foreign workers.

Agriculture committee  Thank you, Mr. Chair. Good evening, members of the House of Commons Standing Committee on Agriculture and Agri-food. We are very pleased to be here to speak with you this evening. The Conseil de la transformation alimentaire du Québec, or the CTAQ, is the largest consortium of Quebec food and beverage processing companies.

Agriculture committee  I would actually like to add that food processing is Canada's and Quebec's main manufacturing sector, but it is often treated as though it is unimportant. The pandemic has shown, however, how essential the food processing sector is. It has also brought the deficiencies to light.

Agriculture committee  Mr. Fraeys, would you mind answering that?

Agriculture committee  It's been a process over many years. They have declined more and more since 2014. The reasons are many including the lack of capital, the labour shortage, the needed investments in innovation, including R and D, the cost of getting products on store shelves and the rise in input costs.

Agriculture committee  I can start. Clearly, we need to invest in automation, in productivity, so that businesses can be a lot more competitive. Investing in innovation is also important. Globalization and the opening of markets mean that we are competing with major players worldwide. Access to programs that support investments in innovation and help businesses remain competitive is paramount to the food processing sector.

Agriculture committee  I will leave it to my colleague, Dimitri, to answer this question.

Agriculture committee  Yes, that's the case with each of the big distributors and retailers. The competition in Canada is fierce. Four or five companies control all the distribution. Obviously, they follow each other very closely. In Canada, they always try to get the lowest price, but processors and suppliers are the ones on the hook for those price cuts.

Agriculture committee  Provide support to help them market their products. Access to short or alternative channels of distribution is a good start. Of course—

Agriculture committee  I will go first, and then, I'll let my colleague Mr. Fraeys finish. To begin with, businesses need capitalization support; they need programs that will help them access automation, robotics and digitization technologies and expertise. Obviously, the current shortage has been compounded by the pandemic.

Agriculture committee  Innovation is an important piece since the labour shortage continues to be the biggest challenge faced by the manufacturing sector. We also need access to skilled employees in food processing. Transportation and logistics need improving and businesses need upgrading. Robotics aside, we need to upgrade equipment, facilities and everything else.

Agriculture committee  Mr. Chair, members of the committee, thank you for the invitation to appear. Today I will make my presentation in French. The Conseil de la transformation alimentaire du Québec, or CTAQ, is the principal body of companies in the food processing sector in Quebec. Its mission is to support entrepreneurs in reaching their full potential to ensure the sustainability of the food industry in Quebec and Canada.