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THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE

June 2022

CATTLE FARMERS AND RANCHERS CONCERNED WITH HEALTH CANADA’S PROPOSED WARNING LABEL FOR GROUND BEEF For Health Canada, Some Saturated Fats More Equal Than Others $1.1B Beef and Bison Processing Facility Planned for South Dakota FCC Supports Beef Sustainability Program Government Supports Projects Reducing Greenhouse Gas Emissions Farm Succession and Bill C-208

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Rabobank Expects Reduced Beef Availability in 2022 Cattle Farmers and Ranchers Concerned with Health Canada’s Proposed Warning Label for Ground Beef Sylvain Charlebois: For Health Canada, Some Saturated Fats More Equal Than Others USDA Announces New Actions to Strengthen Food Supply Chains

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$1.1B Beef and Bison Processing Facility Planned for South Dakota

FCC Supports Beef Sustainability Program

Government Supports Projects Reducing Greenhouse Gas Emissions $3M in New Funding will Transform Canada’s Food Sector

Farm Succession and Bill C-208: Any Amendments Must Respect the Spirit of Bill C-208

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THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE

June 2022 Volume 26 Number 6 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Cam Patterson, Scott Taylor, Sylvain Charlebois, Taylor Brown CREATIVE DIRECTOR Patrick Cairns

Meat Business Pro is published 12 times a year by We Communications West Inc.

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RABOBANK EXPECTS REDUCED BEEF AVAILABILITY IN 2022 A new report by Rabobank says cattle prices were strong through Q1 2022 but Q4 may be something different.

The report says the first signs of softening consumer confidence are apparent in most markets, with wholesale prices for beef coming under pressure even though production costs are higher. A downward adjustment of cattle prices and upstream input costs will be needed to restore processor margins and to maintain beef’s competitiveness with consumers. Rabobank expects ongoing adjustments of consumption and margins in all markets as we head into Q3 2022.

Cattle prices across the seven major exporting countries remained strong through Q1. Low inventory and favorable seasons in Australia continue to support cattle prices, while firm consumer demand supports U.S. prices despite the higher-than-expected production and cattle on feed numbers in quarter one resulting from dry conditions. The outlook for U.S. production could expand through Q2 and Q3 before contracting in Q4.

Meanwhile, lockdowns in China and biosecurity risks in Indonesia pose notable implications for trade. Lockdowns of major Chinese cities are further constraining beef demand and restricting foodservice sales. As a result, Chinese beef imports dropped in Q1, and are expected to be down in Q2. Continuation of the lockdowns will impact China’s beef imports for 2022.

In Indonesia, official reports of lumpy skin disease (early March) and footand-mouth disease (late April) have placed authorities in trading nations – particularly Australia and New Zealand – on high alert. As notifiable diseases, these highly infectious diseases not only have implications for cattle productivity, but they also have trade implications for countries that become infected.

With increased focus on carbon over the last two years, Rabobank has seen numerous companies, industries, and governments make commitments around the reduction of greenhouse gases. Most major meat processing companies around the world have a statement on the environment and a commitment to reduce emissions – and in many cases, to reach net-zero emissions – by a specified timeframe. They see the same for major food retail and foodservice companies. Until now, most commitments have not necessarily changed what consumers see. But that is all starting to change as the first movers release climate-neutral products onto shelves.

Finally, Rabobank views the full cost of beef production is not being passed onto consumers. However, consumers’ willingness and ability to pay is likely to be tested in 2022 as the rates of inflation continue to increase around the world.

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CATTLE FARMERS AND RANCHERS CONCERNED WITH HEALTH CANADA’S PROPOSED WARNING LABEL FOR GROUND BEEF Health Canada is proposing regulations which would require ground beef sold at retail to carry a “high in” saturated fat warning label. Ground beef should be exempt from Health Canada’s proposed front-ofpackage (FOP) labelling like other nutritious foods, such as single ingredient meat, milk, eggs, vegetables, and fruit.

Canadians consume approximately half of their calories from nutrient-poor ultra-processed foods. By contrast, ground beef is a nutrient-dense protein that contributes iron, zinc, vitamin B12, and other essential nutrients.

FOP labelling of whole, single-ingredient foods contradicts the foundational principles of healthy eating and will distract from the real priority, Canadians need to reduce their consumption of ultra-processed foods.

The signals the Government of Canada provides to its consumers regarding healthy food choices will only be more important as Canadians rebound from a pandemic and navigate legitimate fears regarding food security. Now is not the time to vilify a singleingredient and readily available food product; especially where the facts do not support it. In addition to the negative nutritional impact, we are concerned about the consequences of FOP, given that inflation and food prices are at an all-time high and food security is a global priority.

“Farmers and ranchers produce a high-quality, accessible, affordable, and nutritious protein,” states Reg Schellenberg, President of the Canadian Cattlemen’s Association (CCA). “It is a food source that Canadians rely on to feed their families. Health Canada is not sending the right message to consumers.”

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beef. Health Canada is doing the opposite. Canada will be the only jurisdiction in the world placing a health warning label on its ground beef. We are concerned with the potential trade implications. Approximately 50 per cent of Canada’s beef is destined for export markets; a warning symbol is not a positive message to send to our trading partners.

The CCA recently shared new evidence with Health Canada which suggests that reductions in ground beef and ground pork consumption will make a nominal impact, at best, on Canadians’ overall intake of saturated fat, while at the same time putting vulnerable populations (including women and children) at risk of increasingly inadequate iron intakes. Further, recent analyses show that ground meat is a small contributor to the overall saturated fat Canadians are consuming.

Other countries that have implemented FOP regulations have chosen to exempt all single ingredient whole foods, based on their nutritious value, including ground

VEMAG

REPLACEMENT PARTS

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The CCA is strongly urging Health Canada to exempt all classes of ground beef from FOP regulations. We need to ensure Canadians continue to have access to affordable, accessible and whole nutritious foods, like ground beef.

For further information, visit www.cattle.ca

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SYLVAIN CHARLEBOIS: FOR HEALTH CANADA, SOME SATURATED FATS MORE EQUAL THAN OTHERS

By Sylvain Charlebois Looks like we will see different symbols on food packaging soon.

Health Canada is likely going forward with a policy requiring front-of-package nutrition symbols on foods high in saturated fat, sugars and sodium. It’s a concept that will provide clear, easy-to-read labels, but one part of the plan is a head scratcher.

The threshold Health Canada intends to apply is quite simple. For prepared food or processed foods, and foods intended solely for children 1-4, it’s 15 per cent of daily values. This means that if a product’s serving exceeds 15 per cent of the maximum daily allowance for saturated fat, sugar or sodium, a label will be predominantly placed on the package for the consumer to see. For prepackaged meals and dishes, the threshold is 30 per cent.

On the face of it, the policy appears to make sense.

It’s hard to argue against more transparency and, as a result, better health. Where things get murky is with the list of exemptions.

Products at farmers markets, anything not sold directly to consumers, non-processed raw single-ingredient meat and fish products, all dairy and eggs will be exempt from this policy. The list includes technical, practical and health-related exemptions, with 16 categories in total.

What’s surprising, though, is that ground beef and pork are not exempt. This means that in a few months, ground beef and pork, two unprocessed, natural and affordable animal protein sources that many consumers eat every day, will be labelled as having too much saturated fat. Meanwhile, dairy products, which arguably contain at least as much saturated fat, are exempt.

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with this type of labelling have not required them for single-ingredient products.

At the core of the policy is the intent to help consumers make better, healthier choices at the grocery store, particularly when processed foods are involved.

Requiring ground beef and pork to be labelled suggests that the spirit of the policy got lost.

Some sources say the incredibly powerful dairy lobby provided enough evidence and scientific data to Health Canada to suggest that saturated fats found in dairy products are different and healthier. That may be the case, but Health Canada certainly has some explaining to do, considering how it butchered dairy products with the latest food guide, released a few years ago. The lack of consistency is mind blowing.

In addition, beef and pork exceed thresholds set by Health Canada when products are raw, not cooked.

However, few will eat these products raw. When cooked, saturated fat levels are normally below the Health Canada threshold.

Health Canada is purposefully aiming at two important food staples that people have been consuming for centuries. Such a move makes no sense. These products need to be exempt from front-of-package labelling rules.

Sylvain Charlebois is professor in food distribution and policy, and senior director of the AgriFood Analytics Lab at Dalhousie University

What is critical is protein affordability. While retail prices for beef and pork specialty cuts have skyrocketed, ground beef and pork have been relatively affordable, and almost 50 per cent of beef consumed in Canada is ground beef.

Discriminating against these two products despite exemptions is likely driven by elitist nutritional ideologies fostered by some out-of-touch bureaucrats. It often feels as though Ottawa wants to save consumers from themselves. Such a narrative might go over well in Ottawa, but not so much at the average kitchen table.

The beef and pork industries are not only important to the economy, those sectors are part of many traditions and are embedded in our culinary DNA. As we try to figure out how to lead healthier lifestyles, warning Canadians that these unprocessed food staples are now dangerous to their health doesn’t make sense. Dietary recommendations, like most things, should be applied in moderation.

Canada would become one of the first countries in the world to have a front-of-package policy targeting singleingredient products. Other countries before Canada meatbusinesspro.com

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USDA ANNOUNCES NEW ACTIONS TO STRENGTHEN FOOD SUPPLY CHAINS The United States Department of Agriculture (USDA) has announced a roster of new actions delivering on key commitments to promote competition in the American economy, including issuing a new Packers & Stockyards Act rulemaking, making available $200 Million to expand competition in meat processing, and investing $25 million in workforce training.

move away from the rural communities where they live and operate,” Vilsack said. “Under the leadership of President Biden and Vice President Harris, USDA is committed to making investments that promote competition—helping support economic systems where the wealth created in rural areas stays in rural areas— and strengthening rules and enforcement against anticompetitive practices. The funding and new rule we’re announcing today ultimately will help us give farmers and ranchers a fair shake, strengthen supply chains, and make food prices fairer.”

FIGHTING FOR FAIRNESS FOR POULTRY FARMERS

USDA Secretary Tom Vilsack announced more support, resources, and new rules that will strengthen the American food supply chain, promote fair and competitive agricultural markets, prevent abuse of farmers by poultry processors and make prices fairer for farmers and American consumers. These actions combat market dominance by a small number of major meat and poultry processors in key markets, where excessive concentration and control has led to lower prices paid to producers and higher prices paid by consumers.

USDA announced a proposed rule under the Packers and Stockyards Act to protect poultry growers from abuse. The action is the first of three rulemakings that USDA will issue under the Packers and Stockyards Act under the President’s Executive Order on Promoting Competition in the American Economy in order to stop unfair, deceptive, discriminatory, and anticompetitive practices in the meat and poultry industry.

“For too long, farmers and ranchers have seen the value and the opportunities they work so hard to create

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processor and what financial returns the farmer can expect from the relationship based on the range of real experiences of other growers. Contracts would also be required to contain guaranteed annual flock placements and density. Poultry processor CEOs would be required to sign off on the compliance process for disclosure accuracy.

NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW Simultaneously with issuing the proposed transparency rule, USDA isIN opening an inquiry into whether some WEBSITE FOR SERVICES CANADA Global public health organization showcases food industry Currently, poultry processors exert control over much NSF International in Canada recently launched a new of the process of raising chickens take-it-orwebsite - www.nsfcanada.ca - tothrough give Canada’s growing leave-it contracts with growers.

Under these and complex food and beverage industry easycontracts, access processors provide inputs like chickens and feed toand to the global public health organization’s expertise services in Canada.

The website combines information poultry growers. Poultry growers, who often take on depth, experience and capabilities of the visibility NSF debtontothe build poultry growhouses, have limited International Canadian office with access to NSF into the real range of outcomes and risks they face International’s global services dedicated to food safety under these contracts. Moreover, once in the contracts, and quality. the processors then determine the payments that Evolving regulations across countries and increasing poultry growers receive for their services by weighing complexities associated with a globalized food supply the chickens and ranking farmers based on how much network present challenges for NSF International clients in the chickens grew.

Pay the is generally based on Canada and around world. Thedetermined new Canadian website howoffers a farmer compares to other farmers, but farmers expertise and services to help companies navigate these challenges, including certification and auditing, currently have little insight into this comparison. consulting, technical services, training and education, For far too long, growers have complained that the food and label compliance, packaging, and product and “tournament” system is ripe for abuse.

practices of processors in the tournament system are services and fast-changing so unfair for thatCanada’s they shouldgrowing be banned or otherwise regulated. USDA seeks input from stakeholders toaccredited determineInternational whether the current tournamentAssociation for Continuing style systemand in poultry could be restricted Education Training growing (IACET) site.

Topics include HACCP, orfood modernized to create a fairer, more inclusive safety and quality, GFSI benchmarked standards, marketplace. regulations (including FSMA), food science, food packaging, food microbiology and ISO standards. Training modalities include eLearning, on-site, customized and open enrolment.

Additionally, the website includes information about management system registrations for the food, automotive, environmental, information security, medical devices, aerospace and chemical industries, as well as for Ontario drinking water programs.

Visit the new Canadian website at www.nsfcanada.ca to review the food safety services capabilities video, find a list of Canadian food experts, learn about upcoming events and global news releases, a question YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read an FAQ. Continued on page 12

process development.

NSF International’s Canadian website provides information on the following services: Certification & auditing: Third-party food safety audits and certifications, which are integral components of supplier selection and regulatory compliance. Accurate audits are the first step toward successful verification of a company’s food safety system, providing improved brand protection and customer confidence. Certifications and audits are available for animal and produce in the agriculture industry, GFSI certification and management system registration.

Consulting: A full-service team approach providing technical resources, expertise and insight for a wide range of food safety and quality services. NSF International provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and The insight new rulemaking will require poultry processors to protect the brand, technical support services to provide key information poultry growers from on-site temporary orto permanent technical at staffing several critical steps—increasing transparency placements, and various types of consulting. and

accountability in the poultry growing system. For Technical services: A one-stop solution for food product example, processors would be from required to disclose compliance and formulation, concept to finished details of the inputs they provided to each farmer and product, including food and label compliance, packaging, product and process development, and shelf-life and information about the input differences among farmers product evaluation. being ranked.

Furthermore, disclosures would cover the levelTraining of control discretion exercised the poultry andand education: Training for theby global food

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INVESTING IN EXPANDED CAPACITY

BUILDING A WELL-PAID, WELL-TRAINED MEAT AND POULTRY PROCESSING WORKFORCE Vilsack also announced $25 million in investments for workforce training programs for meat and poultry processing workers with American Rescue Plan Act Section 1001 funding. The targeted funding through new and existing National Institute of Food and Agriculture (NIFA) programs is designed to create and expand upon good paying jobs that can strengthen the meatpacking industry by attracting and retaining employees.

Vilsack also announced that USDA is making available $200 million under the new Meat and Poultry Intermediary Lending Program (MPILP) to strengthen the food supply chain and create opportunities for small businesses and entrepreneurs in rural communities.

These funds will provide much-needed financing to independent meat and poultry processors to start up and expand operations. By introducing competition at this key bottleneck point in the supply chain, these investments will help raise earnings for farmers and lower prices for consumers.

USDA also released a new report on Promoting Competition in Agricultural Markets, as required

by President Biden’s Executive Order on Promoting Competition in the American Economy. The report details USDA’s strategy for promoting competition in agricultural markets—including not only actions and initiatives to promote competition in meat and poultry markets, but also other key agricultural sectors like fertilizer and seeds. The report also discusses the negative impacts concentration in shipping has on our food supply chain and describes USDA’s efforts to work across the Administration to use all available tools to promote competition.

The MPILP will provide grants of up to $15 million to nonprofit lenders, including private nonprofits, cooperatives, public agencies and tribal entities.

These intermediaries will use this funding to establish a revolving loan fund to finance a variety of activities related to meat and poultry processing. For example, businesses may use the loans to acquire land, build or expand facilities and modernise equipment.

The report includes the announcement of two new pro-competition initiatives—initiatives that go above and beyond those required by the Executive Order.

First, USDA is announcing plans to complete a top-tobottom review of its programs to ensure they promote competition. Second, USDA announced it will update guidance to strengthen the verification requirements for the most widely used “animal-raising claims” to ensure consumers are getting what they are paying for.

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$1.1B BEEF AND BISON PROCESSING FACILITY PLANNED FOR SOUTH DAKOTA It was announced in late May that a $1.1 billion meat processing plant could be built in the Black Hills Industrial Park in south Rapid City.

The announcement came from Kingsbury & Associates and Sirius Realty of Rapid City and Greenville, SC, with plans to construct an 8,000 head per day processing facility in Western South Dakota. The 1-million square foot facility will process beef and include a specialty bison line. The companies are currently in the research and development phase of the project.

The proposed facility will focus on bringing in and developing new technologies in robotics and artificial intelligence that make processing easier, safer, and more efficient, all while producing a more consistent end-product.

“With graduates from the South Dakota School of Mines, Dakota State University, and others, we have the technological experts to build a high-tech facility never seen before in the United States, right here. We want to attract these young people to live and work here in Rapid City with great paying jobs and by helping build a great community to live in. I plan to live here for the next 50 years, and I want to build a community we are all proud of,” added Kingsbury.

“Our aim is to restore competition in American meat processing,” said Megan Kingsbury, President and Managing Partner, who is spearheading the project.

“I am a 5th generation producer from Western South Dakota, and I know how difficult it is right now for us as producers to be profitable. I want to fix that.

We want to compete with the big four meat packing giants and be that all-important “second bidder” in the cash market. We will build a brand that is America first focusing on procuring American cattle and feeding American citizens affordable, high-quality protein as our first priority. Our grocery store shelves should never be empty of meat again.”

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DF: I don’t think being on the island has really impacted us negatively one way or the other. We’ve traveled a lot, met a lot of other farmers and livestock producers in other parts of Canada, and we all seem to have the same issues and same concerns.

CMB: I understand that your farm was the first in Atlantic Canada to be involved in the TESA program.

DF: Yes, I think we were the first farm east of Ontario as far as I understand.

I’m not sure why the eastern The recently announced Black Hills Industrial previously Park is theassociations preferred wouldn’t site andhave is adjacent to nominated theresouth are Highway 79 and Oldanybody Folsombecause Road, just many farms here on PEI doing every of Rapid City. bit as much as we are as to attain a high level of sustainability. Anyway, “Our priorities include being the best we were very surprised when the PEI neighbor Cattleman’s anyone could ask for.nominated We will our Association employ and develop technologies to mitigate farm.

any negative effect people may attending associatethe CMB: And then you were with processing facilities.

We willincapture Canadian Beef conference Calgary the methane and to help power the facility, utilize you won. renewableDF: energy sources, Yeah! That was awe verywill nicerecycle momenta majority of the water used daily, and for us. But I don’t like to use thewe have been working on efficient transportation word win actually. However, being recognized for our said. commitment was plans as well,” Kingsbury a real honour. If you want to know the truth, it was aispretty humbling “The American rancher less than a experience. As I said to CBC when they generation away from being extinct if we phoned me after the conference, I was don’t do something fast,” said Kingsbury. just floored, really couldn’t believe it.

“We’ve already seen the high cost of meat CMB: So now that you have been in stores and the low prices producers are recognized, do you think that will receiving for their animals. There is profit in draw more attention and garner more this industry up and out down the supply chain if nominations of Atlantic Canada we restore competition. going forward? When that happens everyone who produces and consumes highDF: Absolutely. We’ve gotten a lot quality beef wins.” of good press highlighting the island cattle industry. I’m positive you’ll see more farms in our neck of the woods nominated next year. And I have to give the Canadian Cattleman’s Association recognition for choosing a farm from Prince Edward Island. We are small players in the national beef industry and I think it was a real credit to their organization to recognize us. They treated all the nominees royally and it was a real class act. It was a wonderful experience.

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FCC SUPPORTS BEEF SUSTAINABILITY PROGRAM Farm Credit Canada (FCC) has created a new offering to attract and recognize Canadian beef producers certified to sustainability standards set by the Canadian Roundtable for Sustainable Beef (CRSB).

The FCC Sustainability Incentive Program will provide a payment to FCC customers who are CRSB Certified through CRSB’s Certification Bodies including Verified Beef Production Plus, Where Food Comes From Canada, and the Ontario Corn Fed Beef Quality Assurance Program.

“Canadian producers are already expert stewards of the land and livestock, and the beef sector has been a leader in demonstrating their sustainable practices through the CRSB,” said Todd Klink, FCC’s vice-president of marketing. “We are pleased to work with the CRSB to recognize FCC customers who have already achieved their certification and to encourage additional producers to become certified.”

The payment to customers, made by FCC, will be calculated as a portion of their lending with FCC to a maximum of $2,000 per year. Certified producers are welcome to re-apply for the incentive payment each year for the life of the FCC Sustainability Incentive Program.

For customers who are already CRSB Certified, applying for the program is a simple process at fcc.ca/ sustainabilityprograms. That is also where producers interested in becoming certified and taking advantage of the incentive payment can find more information.

“The Canadian Roundtable for Sustainable Beef applauds FCC for seeing the benefits of CRSB Certified beef production practices,” said Anne Wasko, CRSB chair and co-owner of Bar 4 Bar Land and Cattle Inc. “The Canadian beef industry is continually evolving for the benefit of people, animals, and our planet. Thanks to the sustainable practices demonstrated by CRSB Certified beef producers, we have seen tremendous

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THE BEST DEFE A STRONG OFFE

environmental stewardship and a high standard of animal care, which leads to a thriving beef industry today and for future generations. Sustainable practices will help achieve the ambitious long-term goals set by the industry,” she said.

In a group of certified beef producers who participated in an earlier pilot of the Sustainability Incentive Program there was high praise.

“This will be a great program for producers like us and for the cattle industry,” shared one FCC customer who entered the program. “We invest a lot in our operation, and it is important to be recognized with something in return.”

The CRSB certification program involves an on-going audit process with its partners to ensure operations are meeting its sustainability standards based upon five principles, including natural resources, people and community, animal health and welfare, food, and efficiency and innovation.

“There is an increasing demand from consumers for certified assurances of sustainably-raised beef,” Wasko noted. “Canadian farmers and ranchers care about the environment, and we will continue to do what’s right to conserve our land andTHE our animals, and to meet the PROMOTING HEALTH BENEFITS needs of the present without compromising those of

By Ronnie P. Cons the future.”

Red meat is often wrongly portrayed as being unhealthy.

“FCC already lending to or support our some in thehas media as solutions unhealthy not environmentally f customers’ sustainable practices. Launching this program with CRSB is another support Vegan, fish andthe other non-meat diets way have to been proposed as liver, 6 the industry on its sustainability journey,” saidofKlink. spinac healthier alternatives.

The result of this onslaught negative meat messages has influenced cut backison “While collaborating with themany CRSBfamilies on thistoprogram Iron fo theirfirst meat and poultry of purchases. may reality but found the partnership this kind,Perceptions FCC has the intention truth trumps misinformation. Parents and other consumers absorp of building incentive programs for other sectors in the want what is best for their health and that of their families. future.”

2. Eat They are also aware that a lot of false information is out there and as such, are open to scientific facts that can correct their misconceptions.

This provides an opportunity for retail meat departments to implement an instore ‘Healthy Meat Facts’ nutritional campaign to set the record straight and convince their customers that meat and poultry are actually good for one’s health and that they should increase rather than decrease their purchases of it. The campaign outlined below can have a direct impact on sales: Start by displaying instore posters promoting the nutritional value of meat. They should be innovative, eye catching and be designed to specifically contradict any meat myths. The comments should all be literature based quoting research papers or MDs for maximum effect. Various posters should be made - each with a brief but powerful message covering one theme.

ABOUT FCC Posters can convey the following healthy meat fact FCC is Canada’s leading agriculture and food lender, with a messages: healthy loan portfolio of more than $44 billion. For more 1. Let’s IRON outfcc.ca. the Truth on Meat! information, visit “You would need to eat a massive amount of spinach to

ABOUT CRSB equal (the iron content) in a steak,” says Christopher Golden, an ecologist epidemiologist at Harvard University The Canadianand Roundtable for Sustainable Beef (CRSB) in Cambridge, Massachusetts.

(As quoted by nature.com the advances Canadian beef industry sustainability through in multiarticle ‘Brain foodclever eating’.) stakeholder engagement, collaboration, communication, and science.

For more information, visit crsb.ca.daily intake of 18 For a woman to receive her recommended mg of iron, she would need just 300 grams of cooked bovine

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GOVERNMENT SUPPORTS PROJECTS REDUCING GREENHOUSE GAS EMISSIONS Across the country, farmers have long been responsible stewards of their land and their actions are key to reaching Canada’s climate targets. The Minister of Agriculture and Agri-Food, the Honourable MarieClaude Bibeau, recently announced an investment of over $15.2 million under the Agricultural Clean Technology (ACT) Program to support the adoption of clean technologies for 47 projects throughout Canada.

“The fight against climate change aims to not only reduce Canada’s greenhouse gas emissions, but also to help producers innovate and adopt more sustainable agricultural practices. New investments in the Agricultural Clean Technology Program will support their acquisition of energy-efficient equipment to increase their agricultural productivity and net profits, while improving food security in Canada,” stated Minister Bibeau.

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During a visit to Terramera Inc. in Vancouver, who received $2 million through the ACT – Research and Innovation Stream, Minister Bibeau witnessed firsthand the work underway to provide more consistent and precise measurement of soil carbon. Through the adoption of clean technologies, it is expected that this project will help to encourage farmers and ranchers to adopt regenerative management practices and to be incentivized for the carbon they sequester.

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“Thank you to Agriculture and Agri-Food Canada and the Agricultural Clean Technology Program for this important funding”, said Karn Manhas, Founder and CEO, Terramera. “Investing in soil health and climatesmart regenerative agriculture is one of the most important issues for Canada and the world. Soil is critical to food production and farming. Improving soil health and carbon in soils helps lower costs of inputs while improving outputs and nutrition, which means higher profits for farmers. This is a key opportunity to strengthen our economy, and our food security as a nation. In addition, improving soil health sequesters carbon, which can help turn back the clock on climate change, while increasing water retention in soils, and the resilience of farms. These funds will support the soil and carbon measurement technology Terramera is building. This critical infrastructure will result in better tools for agronomists, and support farmers and ranchers to make this opportunity a reality."

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Across British Columbia, up to $2.3 million will support five ACT Program projects. Under the ACT Program, farmers and agri-businesses will have access to funding to help develop and adopt the latest clean technologies to reduce GHG emissions and enhance their competitiveness. This funding is focused on three priority areas: green energy and energy efficiency; precision agriculture; and bioeconomy solutions.

Canada’s agriculture sector plays an important role in the fight against climate change. Through the recently expanded ACT Program, it is anticipated that current pollution levels will be reduced by up to two megatons as a result of fuel switching and decreased fuel consumption. This program is already helping hundreds of farmers with grants of at least $50,000 for 50% of the cost of new grain dryers or barn heating systems.

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QUICK FACTS • As part of the Emissions Reduction Plan launched in March 2022, the Government of Canada has committed over $1 billion in new funding to accelerate the agriculture sector’s progress on reducing emissions and remains a global leader in sustainable agriculture. This commitment includes an additional $330 million to the Agricultural Clean Technology (ACT) Program – tripling the support for innovation and the development and adoption of clean technologies in the agriculture sector and an additional $470 million for the On-Farm Climate Action Fund to broaden and extend the program past 2024.

Canada is particularly well positioned to sustainably feed a growing global population. This will be achieved by investing in research and innovation, increasing the number of farmers who are adopting beneficial management practices and facilitating their access to clean technologies.

• Through the ACT – Adoption Stream, 44 approved projects will support the adoption of clean technologies, with a priority on those that meaningfully reduce GHG emissions.

• Through the ACT – Research and Innovation Stream, 3 approved projects will support pre-market innovation including research, development, demonstration and commercialization of agricultural clean technologies.

• Program funding for the ACT – Adoption Stream is up to $100 million over five years with $50 million set aside for the purchase and installation of more efficient grain dryers for farmers across Canada and up to $10 million over the next two years (2021-2023) toward powering farms with cleaner energy and moving off diesel.

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$3M IN NEW FUNDING WILL TRANSFORM CANADA’S FOOD SECTOR CFIN INVESTS IN FIVE PROJECTS THAT ARE DEVELOPING ROBOTICS, CLEAN LABEL AND SUSTAINABILITY SOLUTIONS THE CANADIAN FOOD INNOVATION NETWORK (CFIN) has announced an investment of more than $3M into five projects valued at nearly $7.3M through the organization’s Food Innovation Challenge and Innovation Booster programs.

Joseph Lake, CEO, Canadian Food Innovation Network, said, “By investing in breakthrough and transformative innovation, CFIN stimulates collaboration across the food sector and enables high-potential Canadian food innovators to advance past technical hurdles that create barriers to commercialization. This first round of investment programming will help Canadian players in the food sector compete and lead on the global stage.”

THE FOOD INNOVATION CHALLENGE FUNDING RECIPIENTS ARE: * SMART KITCHENS: GASTRONOMOUS TECHNOLOGIES INC. (Oakville, Ontario), partnering with Recipe Unlimited and Sodexo Canada Limited, will receive $1,919,655 to fund the development of smart/connected kitchen equipment ranging from food ingredient preparation to cold storage to accurate automated portioning/ dispensing of those ingredients. * ANTIMICROBIALS FOR LONGER SHELF LIFE: LABORATOIRE INNODAL INC. (Quebec City, Quebec), partnering with Dempsey Corporation and E. Gagnon et Fils Limitée, will receive $943,592 to increase the shelf life of food with natural and clean label antimicrobials, as an alternative to traditional chemical preservatives.

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THE INNOVATION BOOSTER provides flexible and rapid support to Small or Medium Enterprises (SMEs) as they address food innovation challenges or technical hurdles that have created barriers to achieving their commercialization goals.

Both programs are administered by CFIN, which is supported by the Government of Canada’s Strategic Innovation Fund.

The INNOVATION BOOSTER funding recipients are: * COMPOSTABLE FRUIT LABELS: AG-TRONIC CONTROL SYSTEMS INC. (Lakeshore, Ontario) will receive $100,000 to finish the development of globally certified-compostable pressure-sensitive label materials (PSMs) as well as the final printed PLU labels. * FUNCTIONAL SEAWEED COMPOUNDS: CANADIAN PACIFICO SEAWEEDS LTD. (Surrey, B.C.) will receive $93,304 to scale up the extraction, activation and utilization of vitamin B12 and other water-soluble functional compounds found in Pacific seaweeds. * ANTIMICROBIAL SOLUTIONS TO REDUCE FOOD WASTE: GROUPE FOODAROM INC. (St. Hubert, Quebec) will receive $99,834 to develop and validate a solution composed of one or more natural ingredients with antimicrobial properties to eliminate multi-resistant fungal contaminants that are often found in concentrated fruit syrups and purees.

THE FOOD INNOVATION CHALLENGE is a unique funding opportunity for Canadian food industry collaborators who want to spearhead transformative improvements that will propel the food sector forward and generate significant economic impact. The Food Innovation Challenge prioritizes projects focused on smart product and process development, food ecosystem sustainability, and agile and safe supply chains.

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THE INNOVATION BOOSTER is open for submission, closing July 7, 2022.

THE FOOD INNOVATION CHALLENGE has launched its second call for proposals, focusing on digitization and digitalization solutions that create safer, more secure, and more agile food supply chains with letters of intent being accepted June 1 to July 7, 2022.

Applicants must be members of the Canadian Food Innovation Network. Membership is free and open to anyone in the Canadian food sector.

ABOUT CFIN: ​The Canadian Food Innovation Network (CFIN) is a not-for-profit organization established in 2021 to spark innovation in the food sector. Supported by the Government of Canada’s Strategic Innovation Fund, CFIN staff and funding programs provide the support that allows food innovators to grow their businesses.

CFIN connects Canadian food companies of all kinds to fresh insights, ideas and technologies that elevate business performance and to each other so that they can collaborate and grow together.

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FARM SUCCESSION AND BILL C-208: ANY AMENDMENTS MUST RESPECT THE SPIRIT OF BILL C-208 Succession planning is key to any agri-business. The moment farm owners long wait for – to pass off their farming legacy to the next generation in hopes they will be able to grow and succeed. According to CFIB data, two in three agri-business owners were planning to sell or transfer their business to a family member(s) when the time came to retire. As smaller and mid-sized farms are declining in Canada due to consolidation and fewer new farmers entering the industry, being able to transfer or sell the family business to the next generation is more important than before. However, some may ask, what is the government doing to help or hinder the sale or transfer process?

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As you may already know, private member’s Bill C-208, An Act to amend the Income Tax Act (allowing the transfer of small business or family farm or fishing corporation) was passed and received royal assent in June 2021. Prior to Bill C-208, the rules actually discouraged farmers from selling their business to family members by making it more advantageous from a tax perspective to sell to an unrelated third party. This is because the sale of assets to family members was considered to be a dividend, whereas selling to a third party was considered to be a capital gain.

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Most small and mid-sized agri-businesses rely on the sale of the business to fund their retirement, and a growing number of owners are set to retire very shortly.

It is not news that the median age of Canadians is getting older as the biggest generation faces retirement.

According to the 2021 Census of Agriculture conducted

by Statistics Canada, the median age of farm operators rose by two years since the 2016 census, hitting 58 years of age in 2021. As more owners approach retirement age, the number of farms reporting a succession plan has also increased by 6,673 plans over the past four years. It is more important than ever that government policies encourage a successful transition.

In many cases, there is no better successor than a child or grandchild.

In essence, Bill C-208 provided tax relief to those who wish to sell shares of their farm, fishing or small business to their children or grandchildren. Most importantly, it allows for the intergenerational transfer of shares to be treated the same as the sale of those shares to an arm’s length or unrelated corporation.

The recent federal budget included mention of consultations around the implementation of Bill C-208 given the federal governments’ intentions to amend the bill. CFIB is active in the consultation process and is keeping a close watch on any proposed amendments that could deviate from the original intent of this important tax change.

Canadian farmers need to retire knowing that their business is in the right hands. A lifetime of hard work must not be penalized. Thus, the intent of Bill C-208 must remain the same: making it easier and more affordable for farmers, fishers and small business owners to sell their business to the next generation.

Share your feedback with CFIB by contacting our Business Help Line at cfib@cfib.ca or call 1-888-2342232.

Not a member? JOIN CFIB today for more help and information.

TAYLOR BROWN is the Policy Analyst, West & AgriBusiness for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 95,000 members (6,000 agri-business members) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings.

Learn more at cfib.ca. meatbusinesspro.com

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