Ag Insight: The decline in Ontario's commitment to agriculture and food research

Saturday, May 10, 2008

While overall provincial spending has increased 70 per cent since 2002, expenditure in agricultural research has actually fallen. Yet it is essential to Ontario's economy and to an affordable, safe and abundant food supply

by JIM DALRYMPLE

The recent Ontario budget indicates little commitment to agriculture and food research or to the importance of the agriculture and food industry to the economy.

There has been a dramatic decline in the land base used to produce food for an expanding population, expected to reach between 15 and 17 million by the year 2030. Increased yields per hectare will be required if Ontario does not want to be reliant on imported food. The term "local food" has also taken on increased importance with the cost of transportation escalating and the emphasis on food quality and safety.

Research is a key to increased productivity and the reduction of resources needed per unit of product produced. Many of the research facilities, particularly for livestock and poultry research, are in need of drastic renovation or replacement to meet consumer demands.

Research expenditures benefit Ontario's consumers, its producers and the global food production system.

One example is the development of Omega-3 eggs and the health benefits derived from that research.

There has been a decline in the commitment to research under the agreement reached between the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) and the University of Guelph, while government spending over the same period has increased by 70 per cent.

Since 1998, Guelph-area research funding under the agreement has declined from $29.1 million to $25.6 million in 2007.

While Ontario government spending continues to increase, with 2008/09 estimated at $96.2 billion, the OMAFRA budget remains at $945.6 million.

The current total commitment to Agriculture, Food and Rural Affairs is less than the commitment to the Ontario Teachers Pension Fund, which has increased from $708 million in 2004/05 to a projected $1,061 billion in 2008/09.

Health expenditures are now forecast at $40.4 billion for 2008/09 and have escalated from $31.6 billion in 2004/05, accounting for almost one-half of the total budget. Budget support for OMAFRA and the Ministry of the Environment, both critical components of a healthy population and environment, could go a long way to reduce long-term health costs over the next decade.

A study is currently underway with the accounting firm KPMG to look at the Agriculture Research Institute of Ontario (ARIO) and its role in research co-ordination. Approximately two and a half years ago, the control of the research stations was turned over by OMAFRA to ARIO, which is a corporate body reporting directly to the minister.

This agri-food infrastructure portfolio comprises the 14 research stations and three agricultural colleges.

A network, the Ontario Agriculture Services Co-ordinating Committee, which comprises over 500 scientists and representatives from government, producers, commodity and agribusiness, has been less active. The Ontario Animal Research and Services Committeehas not prepared a report since 2005. An Ontario Agricultural Research Coalition, comprising over 20 commodity organizations, has shown little activity, leaving a void in determining research direction and promoting the importance of research.

So why is agriculture and food research so important? Here are some of the key reasons.

1. Many functional foods and neutraceuticals have the potential to influence health costs reduction
2. Product innovation includes novel food products.
3. Continued research on feed efficiency and nutrient utilization can reduce the environmental impact of food production.
4. Agriculture is being challenged to produce foods which address the demands of the immigrant population and Ontario's aging population. Improved production performance or efficiency is enhanced through research.
5. Disease research in animals is important, since it is believed that up to three-quarters of all new diseases may be of animal origin.
6. Investment in research is not an issue when trade distortion is discussed at major world trade meetings.
7. Research developments create job opportunities for skilled workers.

Research, innovation and the adoption of new technologies are important to Ontario's economy, future employment, and an affordable, safe and abundant food supply. BF

J.R. (Jim) Dalrymple, P.Ag., is a former Ontario government swine specialist and owner of Livestock Technology Services in Brighton.