Our November / December issue

November/December 2019

Maple Leaf Foods becomes First Major Food Company in the World to be Carbon Neutral Canada Needs More Women Driving Agrifood Innovation National Beef Strategy Sees Global Opportunities Ahead for 2020-24 3 Reasons Why Canadian Food Manufacturing is Thriving Passing the Torch to the Next Generation of Entrepreneurs

2

CANADIAN MEAT BUSINESS

November/December March/April 20192019 | 100TH ISSUE

November/December 2019

5 6 8 11 13 15 18

Canadian Pork and Beef exports to China to resume Maple Leaf Foods becomes First Major Food Company in the World to be Carbon Neutral Canada Needs More Women Driving Agrifood Innovation

By Dr. Sylvain Charlebois

New USask Beef Industry Chair aims to improve Sustainability and Profitability National Beef Strategy sees global opportunities ahead for 2020-24 Accelerating global agricultural productivity growth is critical MagnusCards: A good day starts with a good breakfast

20 23 25 28 30 30

Spolumbo’s Sees Success amid Retail Expansion

By Mario Toneguzzi

3 reasons why Canadian food manufacturing is thriving

By Sebastien Pouliot

What Beef Producers Need To Know About Environmental Footprint

By Sebastien Pouliot

Passing the Torch to the Next Generation of Entrepreneurs

By Marilyn Braun-Pollon

Announcement of CPI New President and CEO Centennial Foodservice Ltd. now certified by CRSB

4 4

CANADIAN MEAT BUSINESS

November/December March/April 20192019 | 100TH ISSUE

CANADIAN PORK AND BEEF EXPORTS TO CHINA TO RESUME November/December 2019 Volume 19 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 Dr. Sylvain Charlebois, Mario Toneguzzi, Sebastien Pouliot, Marilyn Braun-Pollon CREATIVE DIRECTOR Patrick Cairns Canadian Meat Business is published six times a year by We Communications West Inc.

We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4 Phone: 204.985.9502 Fax: 204.582.9800 Toll Free: 1.800.344.7055 E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue. ©2018 We Communications West Inc. All rights reserved.

The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher.

Printed in Canada. ISSN 1715-6726

Prime Minister Justin Trudeau has announced Canadian beef and pork exports to China will resume in the near future.

“Good news for Canadian farmers today,” Trudeau tweeted. “Thanks to Ambassador [Dominic] Barton and the Canadian meat industry for their work on re-opening this important market for our meat producers and their families.”

China, one of Canada’s biggest export markets for beef and pork, halted Canadian shipments in June after Chinese customs authorities reported discovering residue of the banned additive ractopamine in a batch of pork products. The Canadian Food Inspection Agency (CFIA) later confirmed the shipment’s export certificate was forged.

Agriculture Minister Marie-Claude Bibeau and International Trade Diversification Minister Jim Carr issued a joint statement saying their departments have been working with the CFIA and the embassy in Beijing to engage with China over the past few months.

“We will continue to work closely with beef and pork producers and processors in the coming days and weeks to ensure successful resumption of trade,” they said.

Media sources say Canada has kept up pressure on China since the summer, adding that the recent exchange of ambassadors went well.

Dominic Barton, a former consultant and economic adviser, was named Canada’s representative in September. That same month, China’s new ambassador to Canada, Cong Peiwu, took up his new role in Ottawa.

China is a key trading partner for Canadian meat products and had made significant gains in China over recent years due to the ongoing marketing efforts of our member companies and market promotion associations.

China was the second-largest market for Canadian pork and the fifth largest for beef.

“Our long-standing trade relationship with China is very important to both sides and this represents an important step for both countries” said Chris White, Canadian Meat Council (CMC) President.

Rick Bergmann, Canadian Pork Council (CPC) Chair said, “We are very appreciative of the efforts of government officials to help restore reliable access to China. We’d like to thank Canadian Agriculture and Agri-food Minister Marie-Claude Bibeau and International Trade Diversification Minister Jim Carr for the leadership they have shown in working to resolve this issue. We look forward to working with Ambassador Barton to further strengthen Canadian-Chinese relations”.

China is a very important market for Canadian pork producers. In 2018, Canada’s pork exports totalled almost $4 billion, of which $514 million was exported to China making it Canada’sthird-largest export market.

100TH ISSUE November/December | March/April 2019 2019 CANADIAN MEAT BUSINESS 55

MAPLE LEAF FOODS BECOMES FIRST MAJOR FOOD COMPANY IN THE WORLD TO BE CARBON NEUTRAL Maple Leaf Foods Inc. has announced a massive step forward on its sustainability journey, as it becomes the first major food company in the world to be carbon neutral.

The Company’s announcement acknowledges the impact of the global food system on the environment and the urgent need for transformative change to reduce global greenhouse gas emissions to zero.

As a leading North American producer of meat and plant proteins, Maple Leaf’s path to carbon neutrality is predicated on aggressively reducing emissions by meeting the gold standard of widely respected Science Based Targets, which align global greenhouse gas emission reductions with the goals of the Paris Agreement on Climate Change. In doing so, the Company becomes one of just three animal protein companies in the world to set Science Based Targets, approved by the international Science Based Target Initiative.

Michael McCain, Maple Leaf Foods President and CEO.

6

CANADIAN MEAT BUSINESS

March/April 20192019 | 100TH ISSUE November/December

“There is simply no more time to waste. The devastating impact of climate change on our planet must be confronted head-on by business leaders with decisive and immediate action,” said Michael McCain, Maple Leaf Foods President and CEO. “The global food system must change dramatically if we are to sustainably feed the world’s growing population. We recognize that producing nutrient-dense foods takes vital planetary resources, and we are staking our future on being carbon neutral today, and every day going forward.”

Maple Leaf has made significant progress towards its goal to reduce its environmental footprint by 50% by 2025 - an aggressive environmental target in the industry. Since 2015, the Company has reduced over 86 million kilowatt hours of electricity – equal to 12,912 passenger vehicles driven for one year -- and over 4.3 million m3 of natural gas, which equals annual energy usage for 1,000 homes. Through its water conservation efforts, Maple Leaf has reduced water usage by over 1.2 billion liters. By committing to setting Science Based Targets, Maple Leaf will work even more aggressively to reduce greenhouse gas emissions across its operations and more broadly within its supply chain.

As part of becoming carbon neutral, the Company is also investing in credible and independently verified, high-impact environmental projects throughout Canada and the United States to address its remaining carbon footprint, bringing it to zero. These projects support wind energy, recovering methane gas from landfills, composting and biomass programs to

reduce methane emissions, and forest protection and re-forestry to conserve species and biodiversity.

“These actions are not just about being socially responsible; they are about survival,” said McCain.

“Consumers rightfully expect business and political leaders to solve these problems and address the profound consequences of our climate crisis. Our announcement demonstrates that carbon neutrality and Science Based Targets for emissions reduction are both achievable – and urgent. We hope our actions inspire food companies and businesses broadly to join us in the critical fight against climate change.”

“Addressing greenhouse gas emissions is a top priority for WWF-Canada. We encourage communities, industries and government to join us in reducing our carbon footprint, to benefit wildlife and address the climate crisis,” said Megan Leslie, President and CEO, WWF-Canada. “Maple Leaf Foods’ effort to set Science Based Targets and become carbon neutral shows leadership in sustainability and a commitment to raising the standards for all business in Canada.”

“We must accelerate the transition to a low-carbon economy and a sustainable food system,” said Diane Holdorf Managing Director, Food & Nature Program

at the World Business Council for Sustainable Development (WBCSD). “This level of leadership by Maple Leaf Foods is extremely important. WBCSD highly values their contributions to our Food Reform for Sustainability and Health (FReSH) project - one of WBCSD’s key business-led solutions to drive the transformation of the global food system.”

“Maple Leaf Foods is showing tremendous sustainability leadership,” said John Powers, VP of Strategic Renewables for Schneider Electric, which advised on the selection of environmental projects.

“They are making a substantial commitment, and in doing so, creating a path for others in the industry to create and act on bold environmental goals.”

John Powers, VP of Strategic Renewables for Schneider Electric

For more information, visit mapleleaffoods.com/carbonstrategy.

100TH ISSUENovember/December | March/April 2019 2019 CANADIAN MEAT BUSINESS 7

CANADA NEEDS MORE WOMEN DRIVING AGRIFOOD INNOVATION A recent report on agricultural technology startup funding provided some compelling numbers but it barely received attention – and for what it reveals about gender discrepancies, it deserves attention.

More and more venture capital is being invested in the sector, which is great news. But these funds apparently aren’t serving all demographics equally. Some are left behind, most importantly women.

The report is from the United States but we can suspect the same scenario is happening in Canada. According to Money Where Our Mouths Are, serious gaps exist between how well men are supported in new ventures and how women fare in funding. The report is the first investigation into funding disparities between female and male founders in the agrifood sector.

In 2018, only 16% of all agri-tech ventures had at least one woman as co-founder and only 7% of funded projects were led by women founders. These percentages have barely changed in the last five years, according to the report. Some may argue that projects led by men will outnumber those represented by female-only entrepreneurs, but this goes to the core of a very important issue. In most sectors, women find it challenging to find any financial support. But with food, stakes are much different. Food is the foundation of our communities. It involves us all, one way or another, many times a day.

With little or no diversity of thought in the system, food manufacturing has struggled to innovate for years. It’s only in the last few years that we’ve seen disruptors completely redefining our relationship with food. Whether it’s with proteins, the meaning of environmental stewardship in food or simply how we connect with consumers through other distribution means, everything is changing.

8

CANADIAN MEAT BUSINESS

November/December 20194 March/April | 100TH ISSUE May/June 2019 2019

By Sylvain Charlebois

Most of these changes have been spearheaded by leaders outside the normal spheres of the food sector.

We’re seeing more high-quality ready-to-eat products, more e-commerce, the emergence of a very interesting plant-based portfolio, lab-produced foods and more.

Non-traditional agrifood investors have a different vision for the sector and how we should produce food, whether it’s to conform to our modern expectations related to animal welfare, the environment or nutrition.

And generally, women have a different take on food systems. Women also manage risks differently than men and see the market more multi-dimensionally.

And results usually follow. According to the report, food businesses founded by women ultimately deliver higher revenue – in fact, more than twice as much per dollar invested. Women also tend to be more capital efficient, achieving 35% higher returns on investment.

So the numbers build a case for women entrepreneurs in the food industry. But differences remain.

100TH ISSUE | March/April 20192019 July/August May/June 2019 CANADIAN CANADIAN MEAT MEAT BUSINESS BUSINESS 99

Over the last few years, female-founded startups raised larger deals at the seed stage but typically raised much less during subsequent rounds of funding. Women tend to be more successful with meal kits, food service companies and home cooking companies. But when some farming and major scalable processing are involved, women are next to absent.

Investors, mostly men, will all be financially savvy and mostly driven by scalability. Women tend to appreciate the nuances food can provide and will understand imperceptible stories linked to the financial part of the business. Women will often give more honest assessments of challenges and opportunities in a business. Teams led by women focus on long-term Investors, mostly men, will all be financially savvy and mostly driven by scalability. Women tend to appreciate the nuances food can provide and will understand imperceptible stories linked to the financial part of the business. Women will often give more honest assessments of challenges and opportunities in a business. Teams led by women focus on long-term success, which is critical in the food industry. Here, patience is a virtue, unlike high tech or other fastforward industries.

The report also suggests women entrepreneurs in food will pay back their loans much faster than men. Women also tend to reinvest newfound wealth back into their communities, including families, health and education.

Venture capital is a very piecemeal, insular system, especially in the food sector. We may think investment decisions are rational but they’re not. It’s about who you know, full stop.

10 10

CANADIAN MEAT BUSINESS

March/April 2019 20194 | 100TH ISSUE November/December

We need to get more women in front and foster inclusions during all cycles of funding. Fostering gender equity and greater opportunities for women in the food business is not just a feminist issue. It’s about making food innovation much more robust than we’ve seen in the last 30 years.

This report looked at gender but the same arguments can be made for ethnic groups who can equally contribute to the growth of our food economy.

Embracing diversity isn’t just about having more underrepresented groups in schools, businesses and classes. It’s also about creating a world in which our mosaic society is reflected in the food at our dinner table every day.

Dr. Sylvain Charlebois is senior director of the agrifood analytics lab and a professor in food distribution and policy at Dalhousie University, and a senior fellow with the Atlantic Institute for Market Studies.

NEW USASK BEEF INDUSTRY CHAIR AIMS TO IMPROVE SUSTAINABILITY AND PROFITABILITY Gabriel Ribeiro, the new Saskatchewan Beef Industry Chair at the University of Saskatchewan (USask), will be developing nutritional strategies to improve health, performance and profitability, while lessening the environmental impact of beef cattle production.

The chair will help to identify technologies and nutritional and management practices to improve the

sustainability and productivity of forage-based and feedlot beef cattle production systems.

“My goal as the Saskatchewan Beef Industry Chair is to train high-quality students and conduct research and extension that answer to the needs of the Canadian Beef Industry,” said Ribeiro. “I want to help Canadians produce beef more efficiently and sustainably to meet Continued on Page 12

VEMAG

REPLACEMENT PARTS

100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 11 11

MARY BUHR - DEAN OF USASK’S COLLEGE OF AGRICULTURE AND BIORESOURCES The needs of the growing world population.”

“Saskatchewan cattle producers’ value research and extensionthat comes from the University of Saskatchewan,” said Rick Toney, Saskatchewan Cattlemen’s Association (SCA) chair. “Ribeiro has big shoes to fill in taking on this role. The Saskatchewan Cattlemen’s Association is glad to see this position being filled as John McKinnon retires.”

“SCA looks forward to continuing working together with the beef industry chair as Ribeiro steps in and continues the work to address challenges and opportunities producers face both today and tomorrow,” Toney added.

Ribeiro’s research interests include optimizing grain and forage processing technologies, consequently improving rumen health, feed efficiency, and beef cattle productivity. Other areas of interest are the development of nutritional strategies to reduce greenhouse gas emissions in beef cattle, and alternatives to the use of antibiotics as growth promoters.

His research experience includes rumen in vitro fermentation systems, beef cattle metabolism and feedlot nutritional studies.

“I have also conducted studies focused on forage and grain processing, development of fibrolytic enzymes, and strategies to mitigate enteric methane emissions to promote sustainable beef production,” said Ribeiro.

Currently Ribeiro is working with two graduate students in the Department of Animal and Poultry Science at USask. One project is examining strategies to enhance the use of wheat grain in feedlot diets. The other project will be looking to understand how to improve 12 12

CANADIAN MEAT BUSINESS

November/December March/April 2019 20194 | 100TH ISSUE

the rumen metabolism of ergot alkaloids, and better define maximum limits for cereal ergot alkaloids in diets of feeder cattle, from production, health, and welfare perspectives.

“It is great to have Gabriel Ribeiro in the Beef Industry Chair,” said Mary Buhr, dean of USask’s College of Agriculture and Bioresources. “He brings new ways of thinking about our industries’ concerns, exciting the next generations to create local approaches to meet global needs.”

Ribeiro comes from a family of beef and dairy farmers in the state of Minas Gerais, Brazil. He obtained his veterinary medicine degree, and master’s and PhD in animal science from the Federal University of Minas Gerais in Brazil. After completing his PhD, he worked as a post-doctoral fellow at the Agriculture and Agri-Food Canada Lethbridge Research and Development Centre.

Prior to becoming the Saskatchewan Beef Industry Chair, Ribeiro was an assistant professor at the Faculty of Veterinary Medicine at the University of Calgary.

Gabriel Ribeiro The new Saskatchewan Beef Industry Chair at the University of Saskatchewan (USask)

NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA Global public health organization showcases services for Canada’s growing and fast-changing food industry NSF International in Canada recently launched a new website - www.nsfcanada.ca - to give Canada’s growing and complex food and beverage industry easy access to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s services to release food safety The Canadian Beefglobal Advisors arededicated pleased to and quality. the 2020-24 National Beef Strategy. The strategy

accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging, food microbiology and ISO standards. Training modalities include eLearning, on-site, customized and open enrolment.

NATIONAL BEEF STRATEGY SEES GLOBAL OPPORTUNITIES AHEAD FOR 2020-24

Additionally, the website includes information about

Anne Wasko, Chair of the Beef Advisors notes “As management system registrations for the food, automotive, global demand for all typessecurity, of protein is growing environmental, information medical devices, is designed to take advantage of the opportunities there are opportunities for those with market Evolving regulations across countries and increasing aerospace and chemical industries, as well as foraccess, Ontario complexities associated with a globalizedaddressing food supply drinkingand water programs. cost of production.” There facing the industry while simultaneously supplies a competitive network present for NSF International the challenges.

The challenges development of the 2020-24 clients in areVisit exciting times ahead for agriculture as production the new Canadian website at www.nsfcanada.ca to review the food Canada and around the world.

The new Canadian website adjusts safety services capabilities video,from find a list of Canadianmiddle food experts, learn National Strategy has been a dynamic collaborative to meet demand a growing class in about upcoming events and global news releases, submit a question or read offers expertise and services to help companies navigate YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 2014-05-16 1:20:17 PM process engaging all industry sectors and national and Asia. an FAQ. these challenges, including certification and auditing, provincial organizations.

The Canadian Beef Advisors consulting, technical services, training and education, and provincial cattle associations believeand a united food and label compliance, packaging, product and industry is a stronger industry, and that a stronger process development. industry all those working in itprovides today and into NSF benefits International’s Canadian website information the future. on the following services: Certification & auditing: Third-party food safety audits

Substantial progress was made under components the 2015-19of and certifications, which are integral strategy andselection the intention is to continue building on supplier and regulatory compliance.

Accurate audits are of theexisting first stepindustry toward successful verification the strengths organizations.

“The of a company’s food has safety system,real providing National Beef Strategy provided valueimproved for brand protection and customer confidence.

Certifications Canadian beef producers; it acts as a roadmap for the and audits are available for animal and produce in the groups as they work together. We have set our industry agriculture industry, GFSI certification and management up for success, now we just need to follow through.” system registration. said David Haywood-Farmer, Past Chair of the Beef Consulting: A full-service team approach providing Advisors. technical resources, expertise and insight for a wide range of food safety and quality services. NSF International

The National Beef Strategy united provides finished productpromotes inspection atesting forapproach food, to position theand Canadian beef industry for analysis greater and packaging non-food testing for rapid insight togrowth protect the technical support services profitability, andbrand, continued production of a from on-site temporary or permanent technical staffing high-quality beef product of choice in the world.

The placements, and various types of consulting. industry vision, mission and pillars remain unchanged services: A one-stop solution food product fromTechnical the 2015-19 strategy, but focus areasforand tactics and formulation, from concept to finished havecompliance been updated to reflect the current market and product, including food and label compliance, packaging, regulatory environment that producers face. The four product and process development, and shelf-life and pillars of Beef Demand, Competitiveness, Productivity product evaluation. and Connectivity provide a framework that supports Training and education: Training for the global food producer viability. and beverage industry across the supply chain as an meatbusiness.ca

September/October CANADIAN MEAT 23 100TH ISSUE | March/April 2017 20192019 13 November/December CANADIAN MEATBUSINESS BUSINESS 13

The Canadian Beef Advisors consist of elected leaders and staff representation of the seven national beef organizations responsible for policy, marketing, research and sustainability. They are a diverse group of experienced industry representatives, who are responsible for advancing the strategy with the industry stakeholders, providing recommendations on future direction and reporting results against strategy goals and objectives.

Learn more about how stakeholders can achieve a

14

CANADIAN MEAT BUSINESS

March/April 2019 201944 | 100TH ISSUE November/December

dynamic and profitable Canadian cattle and beef industry at www.beefstrategy.com.

The National Beef Strategy is a collaborative effort by Canadian national beef sector organizations including the Beef Cattle Research Council, Canadian Beef Breeds Council, Canada Beef, Canadian Cattlemen’s Association (and its provincial member associations), Canadian Meat Council, Canadian Roundtable for Sustainable Beef, and the National Cattle Feeders’ Association.

ACCELERATING GLOBAL AGRICULTURAL PRODUCTIVITY GROWTH IS CRITICAL The 2019 Global Agricultural Productivity Report, “Productivity Growth for Sustainable Diets, and More,” released by Virginia Tech’s College of Agriculture and Life Sciences, shows agricultural productivity growth -increasing output of crops and livestock with existing or fewer inputs -- is growing globally at an average annual rate of 1.63 percent.

According to the report’s Global Agricultural Productivity Index, global agricultural productivity needs to increase at an average annual rate of 1.73 percent to sustainably produce food, feed, fiber, and bioenergy for 10 billion people in 2050.

Productivity growth is strong in China and South Asia, but it is slowing in the agricultural powerhouses of North America, Europe, and Latin America.

The report calls attention to the alarmingly low levels of productivity growth in low-income countries, where there also are high rates of food insecurity, malnutrition, and rural poverty.

Agricultural productivity growth in low-income countries is rising at an average annual rate of just 1

percent. The UN Sustainable Development Goals call for doubling the productivity of the lowest-income farmers by 2030.

The GAP Report was released at the World Food Prize in Des Moines, Iowa. Speakers at the GAP Report Launch event included Tim Sands, president of Virginia Tech; Miguel Garcia Winder, undersecretary for agriculture for Mexico; Rose Mwonya, vice chancellor of the Egerton University in Kenya; and Alan Grant, dean of Virginia Tech’s College of Agriculture and Life Sciences.

Productivity growth is generated by such innovations as precision agriculture technology and improved seeds and best practices for nutrient management and animal health. Attention to ecosystem services, such as pollination and erosion prevention, can increase and sustain productivity gains over time.

The GAP Report looks at the powerful combination of agricultural technology, best farm management practices, and attention to ecosystem services in supporting productivity growth, sustainability, and resilience.

Historically, productivity growth has been strongest in high-income countries, such as the U.S, with significant environmental benefits.

Due to widespread adoption of improved agricultural technologies and best farm management practices, especially in high-income countries, global agricultural output has increased by 60 percent, while global cropland has increased by just 5 percent during the past 40 years.

Between 1980 and 2015, productivity gains led to a 41 percent decrease in the amount of land used in 100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 15 15

THE BEST DEFENSE IS A STRONG OFFENSE

The report calls for a strong focus on countries with high rates of population growth, persistent low levels of agricultural productivity, and significant shifts in consumption patterns -- the primary drivers of unsustainable agricultural practices, such as converting forests to crop and rangeland.

high-income countries, such as the U.S, with significant environmental benefits.

Due to widespread adoption of improved agricultural technologies and best farm management practices, especially in high-income countries, global agricultural output OF has increased 60 percent, while global PROMOTING THE HEALTH BENEFITS MEATbyAND POULTRY “These productivity gaps, if they persist, will have cropland has increased by just 5 percent during the past

By Ronnie P. Cons serious ramifications for environmental sustainability, 40 years. the economic vitality of the agriculture sector, and Red meat is often wrongly portrayed as being unhealthy. Even chicken has been getting attacked by the prospects reducing poverty, malnutrition, and Between 1980 and 2015, productivity gains led to a some in thefor media as unhealthy or not environmentally friendly. obesity,” said Ann Steensland, author of the 2019 GAP 41 percent decrease in the amount of land used in Report of the diets GAP have Report Initiative atas liver, U.S. 625 corngrams production, irrigation water use declined of cooked beef or an astounding 2.4 kg of46 Vegan,and fish coordinator and other non-meat been proposed spinach. healthier alternatives. The result of this onslaught of negative Virginia Tech. percent, greenhouse gas emissions declined 31 percent, meat messages has influenced many families to cut back on andfound soil erosion declined (tonstoofabsorb soil loss Iron in vegetables is harder thanper theacre) iron by their meat and poultry purchases. Perceptions may reality but found in meat as it is attached to fibre which inhibits its The 2019 GAP Report examines the pivotal role of 58 percent. truth trumps misinformation. Parents and other consumers absorption. agricultural productivity achieving global goals for want what is best for theirin health and that of their families.

2.

Eat Meat for a Healthier environmental sustainability, development, Animal agriculture in the Brain!

U.S. has experienced They are also aware that a lot ofeconomic false information is out there Being deficient in the found inreducing meat havethe been andimproved as such, are open to scientific facts that can correct their similar productivitymicronutrients and nutrition. gains, dramatically linked with low IQ, autism, depression and dementia says misconceptions. environmental footprint of the livestock production.

Dr. Charlotte Neumann, a paediatrician at the University of This provides an opportunity for retail meat departments “Decades of research and experience tell us that by Accordingastoquoted RobininWhite, assistant professor California, the article ‘Brain foodcleverof eating’. to implementproductivity an instore ‘Healthy Meat nutritional accelerating growth, it isFacts’ possible to animal and poultry science at Virginia Tech, if livestock Zinc is crucial for learning and memory. Vitamin B12 campaign to set the record straight and convince their improve environmental sustainability, while ensuring production the U.S. eliminated, preserves thein sheaths thatwas protect nerves. total U.S. customers that meat and poultry are actually good for one’s that consumers have access to the foods they need and greenhouse gas emissions would decline by only 2.9 health and that they should increase rather than decrease 3. Boost Your Immunity with Meat! want,” said Tom of Thompson, associate dean andcan director percent. their purchases it. The campaign outlined below have Due to its antioxidant powers, zinc is involved in creating direct impact on sales: ofaglobal programs for the Virginia Tech College of antibodies to fight free radicals that increase our risk for chronic diseases.

Agriculture and Lifeinstore Sciences.

The Global Agricultural Productivity Index tracks global Start by displaying posters promoting the nutritional value of meat. They should be innovative, eye catching and progress toward sustainably producing 4.

Power Your Muscle Growth with Meat! food, feed, fiber, be designed to specifically contradictby any meat myths. The The in meat build and repairinbody tissues. zProductivity growth is generated such innovations andprotein bioenergy forhelps 10 billion people 2050. comments should all be literature based quoting research aspapers precision agriculture technology and improved Muscles are made of protein. That is why athletes who are or MDs for maximum effect. Various posters should building muscle strength increase their meatgains consumption. seeds and -best forbutnutrient and In the absence of further productivity in Total be made eachpractices with a brief powerfulmanagement message covering The protein and zinc found in meat are important forbe muscle animal health. Attention to ecosystem services, such as Factor Productivity, more land and water will needed one theme. growth and repair. pollination and erosion prevention, can increase and to increase food and agriculture production, straining Posters can convey the following healthy meat fact 5.

Meat is resource the Complete sustain productivity gains over time. a natural baseProtein! already threatened by climate messages: Meat contains all of the nine essential amino acids that your change.

1. Let’s IRON out the Truth on Meat! body cannot make by itself. Say ‘hello’ to histidine, leucine, The GAP Report the powerful “You would needlooks to eatat a massive amountcombination of spinach to isoleucine, lycine, methionine, phenylalanine, tryptophan, (the iron technology, content) in a steak,” saysmanagement Christopher Golden, ofequal agricultural best farm Unable toand afford higher-priced nutrient-dense foods, threonine, valine.

That is why meat is called a complete an ecologist and epidemiologist at Harvard University in protein. practices, and attention to ecosystem services in such as animal proteins and fruits and vegetables, Cambridge, Massachusetts. (As quoted by nature.com in the supporting productivity growth, sustainability, and consumers willarely on foods 6.

Eat Meat for Healthy Heart!made from cheaper article ‘Brain food- clever eating’.)

Meat of the of B vitamins needed exacerbating for the resilience. cerealcontains grains lots for most their calories, For a woman to receive her recommended daily intake of 18 production of hormones, red blood cells and the proper skyrocketing obesity rates in adults and for children. mg of iron, she would need just 300 grams of cooked bovine functioning of your nervous system.

Historically, productivity growth has been strongest in Say to niacin,describes folic acid, six thiamine, biotin,for panthothenic The‘hello’ GAP Report strategies acid, vitamin B12 and vitamin B6. They are all found in meat. accelerating productivity growth: investing in public The line that ‘the best defense is a good offense’ does not agricultural R&D and extension, embracing scienceonly apply to sports. It also applies to countering negative and information-based technologies, improving meat health myths. Implementing an instore ‘Healthy Meat infrastructure market access, cultivating Facts’ nutritional and campaign to set the record straight on meat partnerships sustainable agriculture and nutrition, and poultry. It isfor a good way to go on the offensive by using education your customers increasing expanding regional andand global trade,your andsales.. reducing postRonnie P. Cons is CEO C&C Packing Inc., a leading Canadian distributor of harvest loss andoffood waste. meat and poultry. He can be reached at RCons@CCpacking.com.

Beginning this year, the GAP Report was produced by Virginia Tech’s College of Agriculture and Life Sciences.

The GAP Report brings together expertise from Virginia 22 CANADIAN MEAT BUSINESS September/October 2017

16

CANADIAN MEAT BUSINESS

November/December March/April 2019 201944 | 100TH ISSUE

Continued on Page 18 meatbusiness.ca

4

100TH ISSUENovember/December | March/April 20192019 17 July/August 2019 CANADIAN CANADIAN MEAT MEAT BUSINESS BUSINESS 17 17

Continued from Page 16

Tech and other universities, the private sector, NGOs, conservation and nutrition organizations, and global research institutions. The report is part of the Global Programs Office unit within the College of Agriculture and Life Sciences that builds partnerships and creates global opportunities for students and faculty.

Productivity data for the GAP Index are provided by the USDA Economic Research Service. The GAP Report is available to view and download at http://www. globalagriculturalproductivity.org.

Agricultural productivity, measured as Total Factor Productivity, increases when the output of crops and livestock increases using existing, or less, land, labor, fertilizer, capital, and livestock.

The GAP Report is supported by the Virginia Tech College of Agriculture and Life Sciences and its supporting partners: Bayer Crop Science, Corteva Agriscience, John Deere, The Mosaic Company, and Smithfield Foods.

The GAP Report’s consultative partners are ACDI/ VOCA, Congressional Hunger Center, Farm Foundation, Global Alliance for Improved Nutrition, HarvestPlus, Inter-American Institute for Cooperation on Agriculture, International Potato Center, The Nature Conservancy, New Markets Lab, Purdue Center for Global Food Security, Supporters of Agricultural Research Foundation, Tanager, and the Daugherty Water for Food Global Institute.

MAGNUSCARDS: A GOOD DAY STARTS WITH A GOOD BREAKFAST The world is a little more inclusive for people living with cognitive special needs, thanks to Nadia Hamilton.

Nadia is the President and Founder of Magnusmode, a Canadian organization offering digital instruction guides called MagnusCards, designed to provide a fun, engaging approach to learning life skills for people with autism and other cognitive special needs, like Nadia’s younger brother Troy.

“Troy always needed extra support with things you and I might take for granted, like making a snack or brushing your teeth,” says Nadia. “Instead of Troy waiting for a family member to help him, I came up with a way to give him more autonomy, to help him complete such tasks himself, with less stress.”

Thanks to a partnership with Egg Farmers of Canada, MagnusCards users can access instructions on how to make simple breakfast recipes using nutritious eggs.

The idea of MagnusCards was born at home. Nadia knew her brother benefited from having a guide on how to do things, so she took that guidance and put it on paper. Inspired by the video game manuals her brother loved to read, Nadia created visual, step-by-step instructions for common, everyday activities.

“I put these guides up on the walls all over our apartment,” says Nadia. “Troy would follow the instructions and found that tasks were easier to do, which built his confidence.”

These paper guides made sense for someone in high school, but what would happen as Troy got older?

Cooking on his own, using transit, going through the airport—there was a world of challenges in front of Troy where guides on the wall just wouldn’t be an option.

18 18

CANADIAN MEAT BUSINESS

March/April 2019 20194 | 100TH ISSUE November/December

So Nadia decided to find a way to put the guides onto his phone.

Starting with a grant from the Centre for Social Innovation, Nadia and the Magnusmode team designed a smart phone app that combines a proven way of learning with game design, to help those with cognitive special needs master life skills using step-by-step instructions. The MagnusCards app reinforces everyday routines and helps people prepare for a new situation.

Now with users in 70 countries, there is structured guidance for everything from cooking spaghetti to making a mobile bank deposit.

“The cooking Card Decks we did with Egg Farmers of Canada have a special place in my heart,” says Nadia. “My brother loves to take part in cooking; he loves using recipes, but they aren’t accessible to him. Working with Egg Farmers of Canada, we laid out recipes in a way that makes it simpler for people like my brother, to help him start the day right.”

Nadia is especially excited that partnerships like this help encourage independence—along with the consumption of nutritious foods like eggs— by making cooking easy to follow in a creative way.

MagnusCards has over 45,000 users, and with roughly 3.6 million people living with cognitive disabilities, Nadia thinks the sky is the limit when it comes to making life better for people of all abilities.

“Parents and caregivers tell me that using the MagnusCards app is like night and day for people with autism, bringing a pride and dignity that reverberates through everything they do and empowering them to reach greater heights in their lives.”

For more information, visit eggs.magnuscards.com, or download the MagnusCards app from the App Store or Google Play.

Egg Farmers of Canada worked with Magnusmode to create easy-to-follow steps for making an omelette, banana chocolate chip muffins, French toast, scrambled eggs and fried eggs.

4

100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 19 19

THE BEST DEFENSE IS A STRONG OFFENSE PROMOTING THE HEALTH BENEFITS OF MEAT AND POULTRY

By Ronnie P. Cons

Red meat is often wrongly portrayed as being unhealthy. Even chicken has been getting attacked by some in the media as unhealthy or not environmentally friendly.

Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families.

Mention the word sausage in Calgary and inevitably They are also aware that a lot of false information is out there Spolumbo’s Foods Deli comes tocan mind. and as such,Fine are open toand scientific facts that correct their misconceptions.

liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach.

Iron found in vegetables is harder to absorb than the iron

foundRETAIL in meat as it is attached to fibre which By inhibits Marioits Toneguzzi SPOLUMBO’S SEES SUCCESS AMID EXPANSION absorption.

2. Eat Meat for a Healthier Brain!

“You deficient know what kept us going, and it’sin an oldhave sports Being in the micronutrients found meat been adage, I don’t think we depression looked beyond the firstsays series linked with low IQ, autism, and dementia Dr. a paediatrician University of or Charlotte the first Neumann, play. Our first goal was at to the survive and once California, as quoted in the article ‘Brain foodclever eating’. we survived we said okay let’s start taking home a

You say an that entrepreneurs Tom Thiscould provides opportunity for retailTony meatSpoletini, departments Spoletini, and Mike Palumbo all former Canadian to implement an instore ‘Healthy Meat Facts’ nutritional crucial for learning Vitamin campaign to set the record straight andaconvince littleisbit of money and and thenmemory.

I just think weB12 kept our Football League players - have built sausagetheir empire in Zinc preserves the sheaths that protect nerves. customers that meat and poultry are actually good for one’s the city and have become synonymous with the popular goals attainable and short. We never overextended health and that they should increase rather than decrease 3.

Boost Immunity with we Meat! and we Your always made sure paid our suppliers, paid food item. their purchases of it. The campaign outlined below can have Due to its antioxidant powers, zinc is involved creating our staff, had money in the bank.

Maybeinthe process a direct impact on sales: antibodies to fight free radicals that increase our risk for could have been a lot faster. We took it a little bit more The idea that began in the winter of 1992 in the chronic diseases.

Start by displaying instore posters promoting the nutritional conservative but we never were caught so to speak with basement of Tom Spoletini’s in-laws’ restaurant is now value of meat. They should be innovative, eye catching and 4. Power Your Muscle Growth with Meat! our pants down.” the king of sausage making and selling in Calgary. be designed to specifically contradict any meat myths. The The protein in meat helps build and repair body tissues. comments should all be literature based quoting research

papers or MDs for maximum effect. should When Tony Spoletini is asked howVarious many posters sausages the be made each with a brief but powerful message covering company pumps out on a yearly basis, he has to stop one theme. and think for awhile - doing the calculation in his head Posters canfor convey following meat fact and asking inputthe from one ofhealthy his staff. messages:

1. Let’s IRONover out the Truthkilos on Meat!

“We process 20,000 a week,” says the staff “You would need to eat a massive amount of spinach to member, sitting at a table nearby. equal (the iron content) in a steak,” says Christopher Golden, an ecologist and epidemiologist at Harvard University in

“So that’s about a million kilos a year.by There’s six in the Cambridge, Massachusetts.

(As quoted nature.com article ‘Brain foodclever eating’.) sausages in a kilo. So we probably process in a year six million sausages,” chuckles Tony, who isdaily the public face For a woman to receive her recommended intake of 18 iron, she would need just 300 grams of cooked bovine ofmg theofcompany.

Muscles are made of protein. That is why athletes who are Tony Spoletini won two Vanier Cups, the national building muscle strength increase their meat consumption. university football championship, the University The protein and zinc found in meat are with important for muscle of Calgary in repair.

1983 and 1985. As a professional, he played growth and

with the Eskimos in the Canadian Football 5.

Meat is Edmonton the Complete Protein!

League and then Calgary Stampeders.

Hethat won a Meat contains all of the the nine essential amino acids your body itself.

Say ‘hello’ toand histidine, leucine, Greycannot Cup inmake 1987bywith the Eskimos he was with isoleucine, lycine, methionine, Stampeders in 1991 when phenylalanine, they lost the tryptophan, Grey Cup to the threonine, and valine. That is why meat is called a complete Toronto Argonauts. protein.

6. Eat Meat for a Healthy Heart!

“When I finished and retired after the ‘91 season Meat contains lots of the B vitamins needed for the Tom and Mike had thisred idea of doing authentic Italian production of hormones, blood cells and for the proper sausages and promote to restaurants and food functioning of your nervousitsystem.

services,” Spoletini.

“I thiamine, decided biotin, I wasn’t going to go Say ‘hello’ tosays niacin, folic acid, panthothenic backvitamin and play season.

I joined those guys.

We acid, B12the and‘92 vitamin B6. They are all found in meat. started making sausages out the offense’ basement ofnot Tom’s The line that ‘the best defense is aofgood does father-in-law’s restaurant La Villa Firenze.

We used only apply to sports. It also applies to countering negative meat myths. Implementing an instore ‘Healthy Meat the thosehealth old 30-pound hand cranks and started hitting Facts’ nutritional campaign to set the record straight on meat streets and restaurants. and poultry. It is a good way to go on the offensive by using education your customers and increasing your sales..

“But when we really got going is when this little deli two

Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of blocks downHethe from where we are now became meat and poultry. can street be reached at RCons@CCpacking.com.

available and we bought the 9th Avenue Deli. We opened that July 7 of 1992. The reason for that is we thought it was futuristic. But it was like a 1960 German

22 CANADIAN MEAT BUSINESS September/October 2017

20

CANADIAN MEAT BUSINESS

November/December March/April 201920194 | 100TH ISSUE

meatbusiness.ca

sausage machine. wason a hydraulic, DF: I don’t think It being the island 100-pound You one fill has reallysausage impactedmachine. us negatively it, you with We’ve your knee andaitlot, waypress or theitother. traveled pushes upfarmers and it shoots it met athe lot meat of other and livestock in other of Canada, outproducers on the table.

Forparts us that was likeand we all seem tobut have state-of-the-art it the wassame reallyissues behind same theand times.

Weconcerns. bought that deli because of that sausage equipment.

But we CMB: I understand that your farm needed cash flow so we Canada kept thetofront was the first in Atlantic be in the TESA program. endinvolved selling the sandwiches.

We kept a few theI favourite sandwiches this DF:ofYes, think we were the first farm 9theast Avenue Deli had and our of Ontario as far as added I understand. ownI’m Italian flare.” not sure why the eastern associations wouldn’t have previously nominated anybody because there Initially the deli grew faster than theare many business. farms hereSlowly on PEI but doing every sausage surely as much as we are as toAattain a thebit sausage business grew. few years high level of sustainability.

Anyway, later a piece of land became available a we were very surprised when the PEI couple of blocks up the street and the Cattleman’s Association nominated our trio bought it. They had money for the farm.

land but they couldn’t get the banks to then you were attending the loanCMB: themAnd money to build.

Canadian Beef conference in Calgary and you won.

“We ended up winning the Calgary DF: Yeah!

That was a very niceBusiness moment Chamber of Commerce’s Small for us.

But I don’t like to use the of the Year in 1997 and next thing you word win actually.

However, being know everybody wants to invest in us. recognized for our commitment was So on August 4, 1998 we opened up real honour. If you want to know thisanew deli that’s got 100 seats and the truth, it was a pretty humbling a 5,000-square-foot federal facility experience. As I said to CBC when they (approved) where we make the sausage phoned me after the conference, I was andjust wefloored, can now sellcouldn’t that sausage really believereally it. anywhere in the world,” says Spoletini.

CMB: So now that you have been The old deli was about 2,000 square recognized, do you think that will feet including the kitchen. draw more attention and garner more nominations out of Atlantic Canada Thegoing current location in the trendy forward?

inner-city Inglewood neighbourhood is DF: Absolutely. We’ve gotten a lot about 10,000 square feet altogether.

of good press highlighting the island cattle industry. I’m positive you’ll see Spolumbo’s opened a smaller more farms in our neck of the location woods in anominated nearby neighbourhood next year. And I about have toagive yearthe and a half ago.

Other locations Canadian Cattleman’s Association are recognition at the U.S.for terminal ofathe Calgary choosing farm from International Airport and recently Prince Edward Island.

Wemost are small players in the national industry at one of Calgary Co-op beef grocery stores. and I think it was a real credit to their organization to recognize us. They “We’re very blessed.

We have a great treated all the nominees royally relationship with Co-op, Sobeys and withit a was a real class act.

It was a wonderful lot of the food service places, Gordon experience.

Food Service and we’re in Community Natural Foods, Urban Fare. We’re in City Market. We have a really strong presence in Calgary especially and meatbusiness.ca

100TH ISSUE | March/April 2019

21

September/October 2017 CANADIAN MEAT BUSINESS 17

h year.

southern Alberta. And you can find us in Edmonton too and places in B.C. and Manitoba. We really have a loyal and strong following in Calgary and surrounding areas,” says Spoletini.

He said people in Calgary like to embrace entrepreneurs and part of Spolumbo’s success is due to the three owners having their roots in the city and the story of their success is an interesting one.

The story’s good but if you don’t have a good product to back it up you’re going to go nowhere,” said Spoletini.

“We had a good story. We had a good reputation in the city and I think we provided a really good product. The story and the product just kind of worked. What set us apart first was doing a high-quality, low-fat sausage.”

22

CANADIAN MEAT BUSINESS

November/December March/April 201920194 | 100TH ISSUE

The company, which is known for its customer service and community involvement, continues to add different services. For example, the main deli recently started experimenting with new alcoholic beverage systems which allow customers to pour their own beer and wine from automatic dispensers - while they have one of those six million sausages Spolumbo’s produces each year.

Mario Toneguzzi, is a daily newspaper writer, columnist and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, city and breaking news, and business. For 12 years as a business writer, his main beats were commercial and residential real estate, retail, small business and general economic news. He nows works on his own as a freelance writer and consultant in communications and media relations/training.

NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility 3 REASONS WHY CANADIAN FOOD MANUFACTURING IS THRIVING

By Amy Reid, Peace Arch NewsBy Sébastien Pouliot, Farm Credit Canada so as to not emit odours. And while there is an operational sector has been. The share of food manufacturing 6,000-square-foot abattoir on the property now, it’s can inonly all manufacturing sales shows a sudden jump process a limited number of cattle. between 2008 and 2009: as sales in all manufacturing Chris Les is general manager of Meadow Valley Meats, sectors plummeted during theMeadow recession, the company behind the project.

Valleythose Meats food is manufacturing continued to grow. seeking a Canadian Food Inspection Agency license for

A federally licensed beef processing facility is in the works Food manufacturing is an important part of the in Surrey, BC. Canadian economy. 2016 census data shows about new building coming forward, a new abattoir, I 240,000“There’s jobs inafood manufacturing, generating about think that’s the French pronunciation of slaughterhouse,” $103 billion in sales in 2018.

A vibrant sector critical said Councillor Mike Starchuk.

“So Surrey willishave a to the success of other across the entire agrinewer facility with aindustries better capacity so people will have the ability to not have to ship an animal to Alberta to have food supply chain.

the proposed abattoir, to become a federally registered meat establishment and doesn’t expand the operation.

This would The demand for food decline significantly allow the meat products to be transported beyond B.C.’s when income drops, but the demand for other boundaries.

it processed. The applications have gone through the Agricultural and Food Sustainability Advisory Committee.”

We explore in figures a few interesting facts about the The facility proposed on a 25-acre in property within the economics of theisfood manufacturing Canada.

Agricultural Land Reserve at 5175 184th St. The planned 30,000-square foot abattoir in Cloverdale would process up 1.

MANUFACTURING IS RESILIENT TO to FOOD 100 head of cattle per day.

According toECONOMIC a city report, DOWNTURNS that would make it larger than any other processing facility in B.C.. But it would still be Food manufacturing have compared been growing small by industrysales standards, to the steadily largest meat at a 2.3% annual average rate since 1992 compared processing plants in Alberta that process 3,000 headsto of per day.

1.8% forcattle all manufacturing sales.

The proposed facility would be fully enclosed and designed

It’s remarkable how resilient the food manufacturing

meatbusiness.ca

manufactured products is very sensitive to the strength is on trying to bring a more efficient, sustainable of“Our thefocus economy.

The overall manufacturing industry local product to the market, realizing we can do that now never recovered to its pre-recession level while food in a very limited sense,” said Les. “I caution people when manufacturing sales about 15% talking to them and theycontinue say, ‘Whattoa represent big plant, that’s going oftoall in Canada.Well, yes, if you look gomanufacturing allow you to go mainstream.’ in the context of B.C., but this is still a very niche plant 2. we’ll CANADIAN FOOD MANUFACTURERS and serve a niche industry for producers andCOMPETE for the ON THE GLOBAL MARKETof a plant market. It’s certainly not going toFOOD be a monstrosity but it’ll be a big upgrade from the site currently.”

Canadian food manufacturers compete with foreign Continued on page 32 firms on the domestic and export markets.

Canada has

September/October 2017 CANADIAN MEAT BUSINESS 31

100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 23 23

been a net exporter of food products since the early 1990s. Between 1992 and 1994, Canada was a net importer of food products. Canadian food manufacturers benefited from the weakness in the Canadian dollar between 1994 and 2007 and Canada started growing a net food exporter position. With the rebound in the economy after 2008, exports and imports of food grew rapidly. Imports began to stagnate in 2016 and in 2018 Canada exported 6.7 billion dollars more food products than it imported.

Food products here are defined as the following NAPCS categories: animal feed, coffee and tea, dairy products, fruit and vegetable juices, intermediate food products, meat products, other food products, and prepared and packaged seafood products.

FOOD MANUFACTURING SALES IN 2018 by category: Dairy - $14.75 billion Animal slaughtering - $13.95 billion Starch and vegetable fat and oil - $8.88 billion Poultry processing - $8.07 billion Animal food - $8.07 billion Rendering and meat processing - $8.05 billion All other food - $7.89 billion Fruit and vegetable preserving - $7.8 billion Bread and bakery - $7.67 Seafood preparation and packaging - $5.21 billion Snack food - $3.96 billion Sugar and confectionary - $3.67 billion

In sectors where Canadian manufactures have a revealed comparative advantage, Canada is a net exporter: meat products, animal feed, seafood products and intermediate food products.

Notably, Canadian exports of meat products exceeded imports by $3.7 billion. Canadian food manufacturers face stiff competition in sectors where Canada is a net importer: dairy, coffee and tea and fruit and vegetable juices.

TAKEAWAYS

3. THE FOOD MANUFACTURING SECTOR IS DIVE Food manufacturing sales in Canada are spread across many products. Dairy is the largest sector followed by animal slaughtering, starch and vegetable fat and oil, poultry processing, and animal food.

Canada’s food manufacturing sector is resilient to downturns in the economy, a significant contributor to Canada’s export position and a diverse industry.

On their own, these characteristics are not out of the ordinary, but their combination provides strength to the food manufacturing industry. Food manufacturers possess the know-how and resources to meet the growing global demand for food but must also innovate to fight off competitive pressures from foreign manufacturers looking to grow their export presence to Canada.

Sébastien Pouliot is a Principal Agricultural Economist at Farm Credit Canada. Prior to joining FCC in 2019, Sébastien was an associate professor of economics at Iowa State University. He has also been involved as an expert in trade disputes at the World Trade Organization, notably supporting Canada and Mexico over U.S. country of origin labelling (COOL) for beef and pork. Sébastien has a PhD in agricultural and resource economics from the University of California, Davis, and has been an editor of the Canadian Journal of Agricultural Economics since 2016.

24 24

CANADIAN MEAT BUSINESS

March/April 201920194 | 100TH ISSUE November/December

WHAT BEEF PRODUCERS NEED TO KNOW ABOUT ENVIRONMENTAL FOOTPRINT More than most livestock, beef cattle production takes place in the natural environment.

Those who live in rural areas and spend most of their time outdoors considering Mother Nature and managing their livestock and land as best they can understand that it’s common sense to protect the health of the land and water for themselves and their neighbours.

When enjoying peaceful moments watching cattle and wildlife on pasture, smelling rain or seeing plants change throughout the seasons, it’s difficult to understand why some people think that Canadian beef production is damaging the environment.

As a beef producer, what do you need to know about the environmental footprint of Canadian beef production?

You have a very good story to tell. Grazing cattle are an integral part of the grassland ecosystem and play a key role in nutrient recycling. Pasture lands are important stores of carbon and provide habitat to many species of plants and animals that could be at risk if land is converted to other uses. They also preserve wetlands that otherwise may be subject to cultivation. Production of cattle in feedlots lowers the carbon footprint of beef and increases the efficiency of beef production.

As with any food system, there are also concerns about the environmental impacts of producing beef.

4

These include resource use, greenhouse gas emissions, water and air quality, and potential nutrient overload.

But research shows that our industry has made significant improvements in efficiency over time.

A 2015 study found that producing the same amount of Canadian beef in 2011 required 29% less breeding stock, 27% fewer slaughter cattle and 24% less land, and produced 15% less greenhouse gases than in 1981.

Additional research is currently underway to measure changes in water quality, carbon sequestration, biodiversity, and other ecosystem services.

By taking time to better understand the various ways your farm or ranch impacts the environment, and considering your current environmental stewardship, you may find additional ways to optimize your management, and reap the associated economic and social benefits. Technologies and innovative production practices related to land management, genetic improvements in growth and reproductive rates, feed strategies to optimize feed efficiency and more can help to ensure that our industry’s environmental footprint continues to shrink.

You can watch a short video at http://www. beefresearch.ca/blog/new-video-what-beef-producersneed-to-know-about-environmental-footprint/ to learn more. This video is intended for Canadian beef cattle producers from cow-calf to feeder. Please share it with producers.

The BCRC thanks the following for their assistance in 100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 25 25

resource use, greenhouse gas emissions, water and air quality, and potential nutrient overload. But research shows that our industry has made significant improvements in efficiency over time.

A 2015 study found that producing the same amount of Canadian beef in 2011 required 29% less breeding stock, 27% fewer slaughter cattle and 24% less land, and produced 15% less greenhouse gases than in 1981.

optimize feed efficiency and more can help to ensure that our industry’s environmental footprint continues to shrink.You can watch a short video at http://www. beefresearch.ca/blog/new-video-what-beef-producersneed-to-know-about-environmental-footprint/ to learn more. This video is intended for Canadian beef cattle producers from cow-calf to feeder. Please share it with producers.

The BCRC thanks the following for their assistance in the making of these videos: Additional research is currently underway to measure Steve Eby, Eby Farms, Kincardine, ON changes in water quality, carbon sequestration, Kelly Hall, Timber Ridge Land and Cattle, Stavely, AB biodiversity, and other ecosystem services.

Dr. Tim McAllister, Lethbridge Research and Development Centre By taking time to better understand the various ways Hugh Lynch-Staunton, Antelope Butte Ranch, your farm or ranch impacts the environment, and considering your current environmental stewardship, you Lundbreck, AB may find additional ways to optimize your management, Dr. Katie Wood, University of Guelph Department of Animal Biosciences and reap the associated economic and social benefits.

Jack Chaffe, Chaffe Farms Ltd., Mitchell, ON Technologies and innovative production practices Brendan Zettler, Zettler Family Farm, Teeswater, ON related to land management, genetic improvements Morgan Chattaway, Bar S Ranch, Nanton, AB in growth and reproductive rates, feed strategies to

26

CANADIAN MEAT BUSINESS

November/December March/April 201920194 | 100TH ISSUE

100TH ISSUE | March/April 2019

27

PASSING THE TORCH TO THE NEXT GENERATION OF ENTREPRENEURS - WHY DOESN’T THE TAX SYSTEM MAKE IT EASIER? Canada’s aging population carries many important implications and the lives of entrepreneurs are not excluded from this. In fact, nearly three quarters of entrepreneurs plan to exit their business within the next 10 years, including 41% in the agriculture sector.

Many of those owners will be retiring and are counting on the sale of their business to fund their golden years.

The economic implications of this shift cannot be overstated: $1.5 trillion in business assets will be sold or transferred over the next decade. The main hurdle for owners looking to exit their business is finding a suitable successor.

Keeping these businesses open is essential to the job stability of employees, the diversity and prosperity of their communities and the Canadian economy as a whole. Policy-makers should be doing everything they can to ensure that these business transitions are smooth and that owners can confidently hand the reins to the next generation of entrepreneurs.

It’s not surprising that many business owners, particularly in farming, would look to their own family first when selecting a successor. The family members of small business owners are often involved in running the business in formal and informal ways, with children growing up helping their parents, learning everything there is to know about the business and seeing firsthand the challenges it faces. They can also benefit from their parents’ expertise and advice, even after taking over. This is still the reality for many small business families, but a bizarre tax rule is making it harder, and more expensive, for owners to sell their businesses to family members than to strangers.

28 28

CANADIAN MEAT BUSINESS

March/April 201920194 | 100TH ISSUE November/December

Currently, when a business owner sells their business to a third party—someone unrelated to them—the proceeds from that sale are considered a capital gain, meaning that they would have access to the Lifetime Capital Gains Exemption (LCGE), reducing the amount on which they are taxed. However, if they were to sell the business to a family member, the income gets taxed like a dividend. As a result, the owner would be hit with a higher tax rate, often costing them tens of thousands of dollars of extra taxes—which they are relying on for their retirement. This perverse tax incentive may serve to discourage business owners from selling their business to their children.

Selling a business to one’s children does not guarantee its success in the future but does help ensure that the company and its jobs remain in the local community in which it was founded. So why put parents in the position of jeopardizing their own retirement in order to ensure their children have a shot at continuing their business legacy? And why are we restricting the number of qualified candidates business owners can choose to sell their business to when we are already facing a lack of incoming buyers? In recent years, the current government has twice opened the door to this idea but we have yet to see any concrete action.

That’s not to say that there may not be political will to change this policy. In the past, both NDP MP Guy Caron and Liberal MP Emmanuel Dubourg proposed legislation to extend the LCGE to family business sales and transfers, but neither were passed. However, there is renewed hope as the newly elected federal government as well almost all the opposition parties

In fact, Conservatives and the Bloc Québécois platforms promised to do just that. There is common ground here and a golden opportunity to fix this.

And business owners want to see this change: making it as easy to sell a business to a family member as to a third party was the number one tax measure that small business owners wanted to see addressed in the recent federal election.

CFIB will be asking the new federal government and opposition parties to work together and act on their election promise to fix this unfair tax treatment, not only for family farms, but for all small businesses. It’s a sensible solution to an unnecessary problem burdening too many small business families, particularly as our population is aging at a fast rate. The time to act is now - the train is coming down the track and the torch needs to be passed to the next generation of entrepreneurs. .

Marilyn Braun-Pollon is the Vice-President of Western Canada & Agri-business for the Canadian Federation of Independent Business (CFIB).

CFIB is calling for the Income Tax Act to be amended so that selling a business to a family member receives the same tax treatment as selling to an outside party.

This is an issue that all parties can—and should—work on together in the coming months to support small business owners and their families.

Marilyn Braun-Pollon is the Vice-President of Western Canada & Agri-business for the Canadian Federation of Independent Business (CFIB). CFIB has 110,000 small and mediumsized member businesses (7,200 agri-business members) across Canada.

owners and their families. In fact, the NDP, solving for all small businesses, including farmers. One of the 100TH ISSUENovember/December | March/April 20192019 CANADIAN MEAT BUSINESS 29 29

CENTENNIAL FOODSERVICE LTD. NOW CERTIFIED BY CRSB

ANNOUNCEMENT OF CPI NEW PRESIDENT AND CEO

Centennial Foodservice Ltd. has announced they have completed the Canadian Roundtable for Sustainable Beef (CRSB) Chain of Custody audit requirements and are now certified to provide beef from Certified Sustainable farms and ranches to the foodservice sector in Western Canada and the Greater Toronto area.

The Board of Directors of Canada Pork International (CPI) is pleased to announce the appointment of Trevor Sears as the organization’s President and CEO.

“With Centennial’s focus on quality and innovation it was an easy strategic decision to apply and complete the Chain of Custody audit requirements and establish internal processes to ensure we as a company, can remain true to the integrity of CRSB’s beef sustainability certification program in Canada. We look forward to working with Cargill, a certified sustainable packer, in supplying those “Customers” with quality beef raised by ranchers committed to sustainability,” stated Darren Pike, Centennial’s Director of Sales and Marketing.

“Centennial Foodservice’s certification demonstrates the rapid advancement of sustainability by the Canadian beef industry. The CRSB would like to congratulate the Centennial Foodservice team on the successful audit and continual engagement with the CRSB Framework.

We look forward to collaborating with their team and customers,” said Anne Wasko, Chair of the Canadian Roundtable for Sustainable Beef.

Centennial’s commitment to the beef industry also includes participation and involvement by Jeff Balchin, Centennial’s Premium Meats Marketing Manager, who is an active member of the CRSB Council. “It makes one extremely proud to work for a company that has the vision and integrity to allocate resources to such an important initiative of the Canadian Beef industry.

It is an honor to be able to collaborate with many key shareholders who are also are committed to seeing our Sustainable Beef program achieve new levels of growth and success”, states Balchin.

For further information, visit centennialfoodservice. com or CRSBcertified.ca 30

CANADIAN MEAT BUSINESS

November/December March/April 201920194 | 100TH ISSUE

Sears brings a wealth of experience and leadership to the organization. Employed by Maple Leaf Foods for more than 25 years, most recently as their Director, Sales and Marketing, Global, he has extensive knowledge of the Canadian pork industry—both in Canada and overseas. Sears has also been an active executive member of the CPI Board of Directors for several years.

“The Board is truly delighted to welcome Trevor to lead the CPI team,” says Neil Ketilson, Chair, CPI Board of Directors. “His experience within the pork industry as well as his familiarity with CPI means he will be able to ‘hit the ground running’ and immediately start work to carry out CPI priorities.”

Sears has extensive experience in strategic management and global business development which will be of great value as CPI moves forward to achieve the priorities of the strategic plan.

“Trevor has already made an important contribution to the pork industry, both through his work with Maple Leaf Foods and his time as a member of the CPI Board,” says Ketilson. “We look forward to his vision and leadership for CPI, its members and the growth of our industry.”

Sears will be based in the CPI office in Ottawa and can be contacted at: sears@canadapork.com.

hoo roved pp Pa

C2 R1

il te X 6 353

| 80

650-4

Ep t s 3

ing lat

thEr

mol i t e 0 -40 C

nsu

-i mo

r The

e

3X

bl ura

D

X040

X030

Z040

1-800-465-3536 e-mail sales@yesgroup.ca

One Pair of BEKINA® BOOTS Lasts 3X Longer than PVC Boots

++

100TH ISSUENovember/December | March/April 2019 2019 CANADIAN MEAT BUSINESS 3131

32

March/April 2019 | 100TH ISSUE