OLDS — Olds College vice-president of development Todd Ormann has a message for the agriculture industry whether or not tariffs are imposed on Canada.
During an interview with the Albertan, Ormann said grain, livestock and other producers can’t rely on the Canadian market; it’s just too small, so agricultural products need to be exported.
“Even though we have the second largest land mass, we will never eat our way out of our production,” Ormann said, noting that at 40 million people, Canada’s population is the size of some big cities in the world.
He said that’s why the industry should continue to cultivate U.S. markets for its products.
“Even though we can reduce inter-provincial trade barriers, all those things, we need to export. And so even though right now our best partner may not be treating us best, we simply still can’t completely turn our back on them.”
He noted that the Canadian ag industry works with a lot of global partners who are good to work with.
However, Ormann said that doesn’t mean we can’t look at other potential customers as well as cultivate markets in Canada and Alberta, because he also agreed the Canadian ag industry probably has been too reliant on the U.S market.
Ormann noted that although at the beginning of the tariff war, markets were jittery, they seem lately to ignore a lot of U.S. President Donald Trump’s flip-flopping on tariffs.
“Trump does not seem to like that world global order and so what does that mean long-term for society and trade, and I think this is what the markets are now reacting to,” Ormann said. “How fundamental of a shift is this really going to be?”
Ormann pointed out that this isn’t the first time the ag industry has been buffeted by events.
He recalled that more than 20 years ago, the beef industry was shut out of many markets due to an outbreak of bovine spongiform encephalopathy (BSE), but it did manage to recover.
“We've had other trade embargoes,” he said. “Basically we've had issues with China in terms of canola.
“We had an issue a few years ago from Japan in regards to genetically modified wheat. So, tariffs are not unique in ag.
“We do have to remember, this is a much bigger deal and a much more extreme one, but it is been part of the game in agriculture for a long time.”
