Our April Issue

April 2020

CANADIAN EMERGENCY WAGE SUBSIDY UPDATE

FCC Lending Capacity Increases by $5B Food Prices To Remain Stable Despite Covid-19 A Sanitation Schedule To Help Keep Pests Out Of Production Covid-19 Update From Agriculture and Agri-Food Canada Save-On-Foods Launches $1 Million Campaign Canadian Farmland Values Continue to Soften Amid Uncertainty Agri-Food Immigration Pilot Launch Postponed

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April 2020

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Canadian Emergency Wage Subsidy Update

FCC Lending Capacity Increases by $5B

Food Prices To Remain Stable Despite Covid-19

A Sanitation Schedule To Help Keep Pests Out Of Production Covid-19 Update From Agriculture and Agri-Food Canada

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Save-On-Foods Launches $1 Million

Farm Credit Canada: Canadian Farmland Values Continue to Soften Amid Uncertainty Agri-Food Immigration Pilot Launch Postponed Until May Covid-19 Causes Cash Flow Crisis For Small Business

BY DAN KELLY

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April 2020 Volume 20 Number 1

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Alicia Sinia, Dan Kellya CREATIVE DIRECTOR

CANADIAN EMERGENCY WAGE SUBSIDY UPDATE On April 1, 2020, Federal Finance Minister, Bill Morneau, provided an update on the proposed Canada Emergency Wage Subsidy. The program would offer a 75 per cent wage subsidy to businesses who have suffered at least a 30 per cent drop in gross revenue due to the impacts of COVID-19.

While the details of how these funds will be administered are still being worked out, Finance Canada has outlined the following details:

Patrick Cairns

Canadian Meat Business is published six times a year by We Communications West Inc.

• The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees, representing a benefit of up to $847 per week.

• The program would be in place for a 12-week period, from March 15 to June 6, 2020.

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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

• Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.

E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca

• An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.

Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue.

• Eligible employers would include employers of all sizes and across all sectors of the economy, except public sector entities.

©2020 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

• Eligible employers would access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More application details are expected to follow.

Organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

For more information, please view the Canada Emergency Wage Subsidy technical backgrounder by clicking here.

For more information, visit www.canada.ca 100TH ISSUE | March/April 2019 April 2020 CANADIAN MEAT BUSINESS 5

FCC LENDING CAPACITY INCREASES BY $5B Farm Credit Canada (FCC) has received an enhancement to its capital base that will allow for an additional $5 billion in lending capacity as announced in late March

by Marie-Claude Bibeau, Minister of Agriculture and Agri-Food Canada.

Minister Bibeau’s announcement follows Prime Minister Justin Trudeau’s announcement outlining more details on the Government of Canada’s plan to support the economy during the COVID-19 pandemic. In that announcement, the government made a commitment to the agriculture and food industry to ensure producers, agribusinesses and food processors continue to have access to necessary capital at this challenging time.

“Farmers and producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families,” the Prime Minister said. “We are taking action now to give them more flexibility to meet the challenges ahead.”

“If you are a producer concerned about having the cash flow required to plant your crop, or you are a food processor feeling the impact of a lost sale due to the financial downturn, FCC is here to support you in these uncertain economic times,” said Michael Hoffort, FCC president and CEO. “It’s in times like these that we are reminded how important Canadian producers and food processors are to our nation and to feeding the world.”

Hoffort adds that FCC will use its resources to find solutions that offer the best chance for recovery going forward so the industry emerges stronger. Initially, the focus will be on assisting the industry in addressing cash flow challenges so that businesses can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this difficult time.

“Like many Canadians, I am truly grateful for our farmers and food business owners and employees, who continue working hard so we all have quality food on our grocery store shelves and kitchen tables. Their continued work is essential to our plan to manage COVID-19,” Minister Bibeau said. “The measures announced today will provide farmers and food producers across the country with important financial flexibility they will need during these challenging times.”

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“Supporting the industry will also take strong collaboration between banks, credit unions, FCC and other financial institutions,” said Hoffort. “FCC has served as a strong and stable industry presence for more than 60 years, and this current situation is no different. We will be working in partnership with other financial providers to offer the solutions needed by the agriculture and food industry to take on the challenges ahead.”

Customers facing financial pressure are encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 to discuss their individual situation and options.

For more information, visit fcc.ca

As part of its ongoing support efforts, FCC also is asking existing customers who have cash flow or other financial concerns to contact the organization to discuss alternatives, such as loan payment deferrals and products available to assist with cash flow needs.

“Each business’ financial situation is unique, so there may be a combination of options considered,” Hoffort said. “The bottom line is that FCC is being supported by our shareholder to play a bigger role in supporting the success of the Canadian agriculture and food industry across Canada. The sooner we can discuss potential challenges, the more options we have.”

April 2020 CANADIAN MEAT BUSINESS 77 100TH ISSUE | March/April 2019

FOOD PRICES TO REMAIN STABLE DESPITE COVID-19 Even as COVID-19 causes online grocery orders to surge and restaurant revenues to plummet in Canada, a recent update to the country’s 2020 Food Price Report shows this year’s overall food prices will rise by no more than the 4% increase predicted in late 2019.

The update from researchers at the University of Guelph and Dalhousie University indicates vegetables and bakery items are driving the expected 4% rise in 2020. Meat prices are expected to increase by no more than 6%, as predicted in the December report.

Consumers’ shift to online buying and altered food safety practices among retailers are key changes under way as Canadians adjust their food purchasing practices during the pandemic, according to the report.

GROCERY MODEL CHANGES Grocers are setting up barriers to physically separate staff and customers and asking customers to adhere to strict physical distancing. More security and cleaning have increased costs for retailers, as have salary increases for employees being retrained to ensure sanitation.

“Salaries have increased by anywhere between 5% to 15%,” states the report, adding an estimated 250,000plus employees working in more than 5,000 stores have received pay increases since the outbreak began.

“The food retail and processing sectors are under extreme pressure to change food safety practices to make customers feel safer.”

FOOD SERVICE REVENUES ONLINE SHOPPING CHANGES Although anticipated price increases in most food categories remain unchanged from the late 2019 report, restaurant prices are expected to fall by 2% to 4% this year, as the sector has been limited to delivery and pickup service during the pandemic.

“The food service industry is being decimated as a result of COVID-19,” states the report.

Noting that Canadian restaurants normally generate more than $90 billion a year in sales, the report said, “almost overnight, the sector’s ability to generate revenues beyond delivery or pickup was halted.”

At the same time, many Canadians under quarantine or self-isolation are unable to leave their homes, and three out of four Canadians now consider visiting the grocery store a health risk.

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The report says grocers face an unprecedented challenge in meeting surging online orders. Almost 10% of Canadians who have never ordered food online are now doing so, according to a recent survey. Customers are expected to wait between three and seven days for their order, and online purchases and delivery will likely increase food costs over time, according to the report update.

The pandemic may force longer-term shifts in consumer purchasing habits and retail business models, said Prof.

Simon Somogyi, U of G’s project lead for the report and holder of the Arrell Chair in the Business of Food.

“COVID-19 has provided an opportunity for people to try meal kits because they haven’t had a chance to go to the grocery store to get food,” he said. “Once the pandemic quiets down and they’re able to get around,

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and they’re able to get around, will people still use meal kits? I feel that people will try them during the pandemic and continue using them.”

EFFECT OF LOWER OIL PRICES Food prices are also being affected by lower oil prices, causing food transportation costs to fall – offset by potential cost increases attributed to a weakening Canadian dollar.

“Canada imports about 30% of its food, so we’re heavily reliant on a favourable U.S.-Canadian dollar exchange rate,” said Somogyi. “We’ve seen the Canadian dollar drop drastically against the U.S. dollar.”

Referring to reduced oil prices, he said, “Oil has a big impact on farming and retail, especially logistics and the supply chain because of the movement of food by truck and rail, so there’s some balancing happening there.”

U of G professor Graham Taylor, Canada Research Chair in Machine Learning from the School of Engineering, and post-doctoral engineering researcher Ethan Jackson contributed to the revised forecast, along with co-authors Sylvain Charlebois and Janet Music of the Agri-Food Analytics Lab at Dalhousie University.

Courtesy of university of Guelph

VEMAG

REPLACEMENT PARTS

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A SANITATION SCHEDULE TO HELP KEEP PESTS OUT OF PRODUCTION

By Alice Sinia, Ph.D. Quality Assurance Manager – Regulatory/Lab Services, Orkin Canada Pest management is a vital part of food safety and compliance in meat processing facilities. To have the type of proactive, preventive pest management program that is required, that means your sanitation practices must be up to par. Are your current sanitation plans getting the job done? Unfortunately, there are several commonly overlooked places, steps and outof-sight spots that could lead to devastating pest problems. Taking steps to sanitize and remove pest attractants from inside and nearby your facility is one of the best ways to stay on top of potential pest issues and prevent them from interfering with production.

When your business includes meat processing, packaging and waste disposal, it’s easy to see how these facilities can become one big hot spot for pest activity. When not properly sanitized, holding and slaughter rooms, plant floors, processing machinery and waste disposal zones can create breeding grounds for unwanted pests, like flies, rodents and cockroaches.

These are some of the most common pests that put meat processing plants at risk. Flies, for example, can transmit E. coli, Salmonella and Shigella to your meat products via direct contact or contaminated surfaces. They are also rapid multipliers. With the right conditions, a fly population can grow, thrive and contaminate product at a remarkable rate. Because of this, and other pest threats, keeping the whole plant clean and organized should be a top priority for all workers in the facility. Below are some tips and timing for keeping your entire plant clean and, ultimately, less attractive to pests.

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For lower to moderate risk areas listed below, thorough cleaning can occur on non-daily basis. These are areas with less moisture or potential food sources, but still offer hiding spots for pests, and may be less traveled areas of the plant – which means the biggest risk for these areas is a pest problem that would go unnoticed if not regularly inspected. Monitor often, but one to two months is the sweet spot for taking action in the following areas.

EVERY ONE TO TWO MONTHS: * Wipe down and check any dry storage areas. Dead insects or insect droppings nearby likely indicate a bigger issue. Similarly, any damage to baseboards, lower drywall or cardboard boxes could indicate rodent activity. Make sure all items being stored are at least half a meter away from the wall and above the ground to make access for pests harder and your monitoring easier. * Each month, be sure to purge refrigerators and cupboards in break rooms of old or expired foods and wipe the inside down. * Rotate outdoor dumpsters and asses the volume of waste. Check for any leaks – fluids from decomposing garbage often seep through to the ground under the dumpsters creating a perfect attraction and breeding ground for pests. Dumpsters, if not kept closed, can collect rainwater and, combined with decomposing garbage over time, will attract pests or leak out. Keep lids closed to help limit pests’ access. This is also the

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ON A REGULAR BASIS: Take garbage out as soon as it is full or at the end of NSF INTERNATIONAL *theFOCUSES ON day. Trash cans should be lined, and the lid closed.

Once a month, trash cans should be rinsed out to CANADIAN FOOD INDUSTRY WITH NEW prevent pest attracting residues from building up at the bottom of the trash cans. These types of organic debris WEBSITE FOR SERVICES CANADA can do a lotIN in terms of attracting flies to your facility.

Global public health organization showcases services Canada’s growing and fast-changing * Clean for the inside and outside of all machinery, food industry especially around nuts and bolts and in joints, weekly.

Meat particles trappedAssociation in these areas provide breeding NSF International in Canada recently launched a new accredited International for Continuing spots for small flies and mites.site.

These tight crevices website - www.nsfcanada.ca - to give Canada’s growing Education and Training (IACET) Topics include HACCP, and complex food and beverage industry easy access foodcreate safetythe andperfect quality, GFSI benchmarked standards, can hiding spot for pests when they to the global public health organization’s expertise and regulations (including FSMA), food science,Cockroaches food packaging, are not regularly checked and cleaned. services in Canada. The website combines information food microbiology and ISO standards.

Training modalities specifically are known for cramming into tight cracks on the depth, experience and capabilities of the NSF include eLearning, on-site, customized and open enrolment. and crevices and are known to spread disease-causing International Canadian office with access to NSF Additionally, includes information aboutsure bacteria suchtheaswebsite E. coli and Salmonella.

Making International’s global services dedicated to food safety management system registrations for the food, they stay out of the processing machinery isautomotive, crucial. and quality.

Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in time to assess whether not your current waste pickCanada and around theor world.

The new Canadian website expertise and services to help companies navigate upoffers schedule is sufficient for the amount of garbage your theseproduces. challenges, including certification and auditing, facility consulting, technical services, training and education, food and label compliance, packaging, and product and * Clear out any debris from your plant’s roof or gutter process development.

environmental, information security, medical devices, aerospace and chemical industries, as well as for Ontario *drinking Wash, water sweep, vacuum and/or mop all processing programs.

areas daily, while immediately cleaning up any spills.

Visit the new Canadian website at www.nsfcanada.ca to review the food Any spills can create thatfood is tantalizing safetydried services capabilities video, findaaresidue list of Canadian experts, learn aboutinviting upcoming events and global news releases, a question and to pests.

YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read an FAQ.

system.

NSF International’s Canadian website provides information on the following services:

* You likely have janitorial services in charge of routine Certification auditing: Third-party foodareas, safetybut audits vacuuming and&trash disposal in offices it and certifications, which are integral components of is important to take a look at offices through a pest supplier selection and regulatory compliance. Accurate management lens periodically. Uncluttering office audits are the first step toward successful verification space organizing go a long way improved in reducing of a and company’s food files safetycan system, providing pest activity.

Food particles on desks, the floor and in brand protection and customer confidence. Certifications office or snacks stored desk drawers and garbage audits arecans available for animal andinproduce in the industry, GFSI certification and management areagriculture often overlooked source of pest activities. system registration.

Consulting: A full-service approach providing * Clean underneath and inteam between equipment technical resources, expertise and insight for a wideluring range monthly to ensure there is no debris or moisture of food safety and quality services.

NSF International in pests. Similarly, a deep clean of drains around this provides finished product inspection testing for food, time is also recommended. packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services * Though refrigeration are tootechnical cold to sustain from on-site temporaryrooms or permanent staffing pest growth, they, too, should cleaned occasionally. placements, and various types be of consulting.

Technical services: A one-stop solution for food product

Forcompliance high risk areas, cleaning should occur to anywhere and formulation, from concept finished from immediately weekly.

Bothcompliance, inside andpackaging, outside, product, includingto food and label product and process and shelf-life andfor these areas give pestsdevelopment, everything they are looking product evaluation.

– adequate shelter, lots of moisture and great meals.

Regular and more frequent cleaning in these Training and education: Training for the globalareas food is and beverage industry across supply crucial to helping prevent the the spread of chain pests.as an meatbusiness.ca

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* Break rooms where employees are in and out and frequently eating can draw in pests waiting for an opportunity to hijack a snack. Encourage employees to dispose of food leftovers or garbage in appropriate receptacles as well as refrigerate leftover food and beverages instead of leaving in the open. It should also be sanitized daily to eliminate trash, crumbs and spills. * Holding and slaughter rooms should be monitored and cleaned regularly, as these areas are highly vulnerable to pests, like cockroaches, birds and flies. * Clean up crumbs and other organic debris from underneath the refrigerator, microwave and other appliances in break rooms and office spaces weekly.

Make sure any coffee grounds or spilled cream and sugar accumulated around the coffee makers are also cleaned. Any traces of food particles can be attractants for ants, and when you see a few, there are likely more nearby and on the way.

The most effective pest management programs are a team effort, so get your employees on board with a documented sanitation schedule with timing, expectations and roles assigned to help ensure the safety and quality of the meat you the produce and distribute.

Alice Sinia, Ph.D. is quality assurance manager of regulatory/lab Services for Orkin Canada focusing on government regulations pertaining to the pest control industry. With more than 20 years of experience, she manages the quality assurance laboratory for Orkin Canada and performs analytical entomology as well as provides technical support in pest/insect identification to branch offices and clients. For more information, email Alice Sinia at asinia@orkincanada.com or visit www.orkincanada.com.

* Always rotate inventory on a first in, first out schedule to keep it moving. This will reduce the likelihood of pest-attracting odours and food sources.

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COVID-19 UPDATE FROM AGRICULTURE AND AGRI-FOOD CANADA Canadian Food Inspection Agency (CFIA): To ensure there are enough inspectors available at federal processing plants, the CFIA is collaborating with the provinces. To start, Alberta inspectors are currently going through a rapid federal training program to ensure enough inspectors are on the ground. On labelling restrictions, the CFIA is working on this internally, on areas they can adjust to keep the food supply moving.

Temporary Foreign Workers (TFW) Program: The Government of Canada (GoC) recognizes the challenges facing producers and TFWs when it comes to the twoweek isolation period and is looking into ways it can offer support.

To help get workers here, Global Affairs Canada is also working on coordination between countries on getting flights to Canada as well as negotiations on international flights with airlines. AAFC, along with other government departments, has created a team to work with agri-food employers and ensure TFWs can enter Canada.

If you have any questions or concerns, please email: feedback@cattle.ca.

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Canadian Emergency Response Benefit and Wage Subsidy: Further details regarding the Canadian Emergency Response Benefit (CERB) program have been shared:

• Packing plants are eligible.

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THE BEST DEFE A STRONG OFFE

PROMOTING THE HEALTH BENEFITS

By Ronnie P. Cons

Red meat is often wrongly portrayed as being unhealthy. some in the media as unhealthy or not environmentally fr 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.

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:

* TFWs would not be eligible for CERB, but the GoC is looking into other options to support. * Farm businesses will be eligible, but we are waiting further details on criteria to be available, but farm business can apply through the Canada Revenue Agency (CRA).

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.

* A Frequently Asked Questions document is being developed and will be available soon.

Posters can convey the following healthy meat fact messages:

Agri-Food Immigration Pilot: As the GoC continues its response to the COVID-19 pandemic, the Agri-Food Immigration Pilot is now scheduled to open on May 15, 2020 and will accept applications until May 14, 2023.

Information on how to apply will be posted online and shared via social media closer to the launch date.

1. Let’s IRON out the Truth on Meat!

“You would need to eat a massive amount of spinach to equal (the iron content) in a steak,” says Christopher Golden, an ecologist and epidemiologist at Harvard University in Cambridge, Massachusetts. (As quoted by nature.com in the article ‘Brain food- clever eating’.)

For a woman to receive her recommended daily intake of 18 mg of iron, she would need just 300 grams of cooked bovine

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SAVE-ON-FOODS LAUNCHES $1 MILLION CAMPAIGN Save-On-Foods launches $1 million campaign to feed kids in need across Western Canada Save-On-Foods has committed $500,000 toward their $1 million fundraising goal aimed at giving kids easier access to school meal supports during the COVID-19 pandemic.

With an estimated one in five school-aged kids in Canada relying on school-based nutrition programs, school closures mean many Canadian kids are unsure where their next meal will come from. Schools and community groups throughout Western Canada are working with parents to ensure vulnerable kids get the support they need, and Save-On-Foods and its partners are stepping up to help.

Over the last three years, by participating in The Grocery Foundation’s Toonies for Tummies program, Save-On-Foods and its customers have made donations which have enabled over 250,000 meals to kids at school made possible through programs delivered by Breakfast Club of Canada.

support to schools, community organizations, and other partners mobilized to get food supports to these kids as quickly and efficiently as possible.

All money raised locally stays local—that means each community will be helping kids right in their local areas.

“As we ramp up efforts to support an increasing number of Canadian families facing food insecurity, this generous commitment to raise $1 million is a timely blessing,” said Breakfast Club of Canada President & Founder, Daniel Germain. “We are grateful for the continued support from Save-On-Foods, and we look forward to supporting their efforts to accelerate true community partnerships to solve this problem. We are proud that we have been entrusted with ensuring these funds and resources are put to their best and highest use.”

Now, customers can donate $2 or 500 More Rewards points at the till of any Save-On-Foods, PriceSmart Foods or Urban Fare locations store, and the company will match up to a total of $500,000. Donations can be made in-store, or online through Breakfast Club of Canada, Backpack Buddies or I Can for Kids digital platforms.

Funds raised will be donated to Breakfast Club of Canada (the Club), which helps feed more than 243,500 children and youth in 1,809 schools across the country each year. The Club will in turn distribute funding and 16 CANADIAN MEAT BUSINESS 16

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To support this work, and in response to requests for guidance, DF: I don’t think beingprogramming on the island hasdonations really impacted us negatively support, and food from one way number or the other.

We’ve traveled a growing of schools and a lot, met a lot of other farmers and livestock grassroots community partners, Saveproducers in other parts of Canada, and On-Foods has mobilized the talent we all seem to have the same issues of partner organizations known for and same concerns. their skills and well-established best CMB: I understand that your farm practices in delivering these services was the first in Atlantic Canada to be in British Columbia year-round. From involved in the TESA program. procurement to program delivery to DF: Yes, I think we were the first farm logistics, the team has assembled east of Ontario as far as I understand. quicklyI’m to not assist in accelerating the sure why the eastern deliveryassociations of a sustainable wouldn’tsolution. have previously nominated anybody because there are

In addition Breakfast of every manyto farms here on Club PEI doing as much as as to attain a Canada,bitpartners in we thisare coordination high levelFood of sustainability. effort include Banks BC, Anyway, Backpack we were very surprised when the PEI Buddies, I Can for Kids in Calgary, Cattleman’s Association nominated our BC Agriculture in the Classroom farm.

Foundation, The Grocery Foundation, CMB: And then you were attending the and Food Mesh.

Canadian Beef conference in Calgary and you won.

DF: Yeah! That was a very nice moment for us. But I don’t like to use the word win actually. However, being recognized for our commitment was a real honour. If you want to know the truth, it was a pretty humbling experience. As I said to CBC when they phoned me after the conference, I was just floored, really couldn’t believe it.

“We know that kids need nutritious

meals and we CMB: Soare nowabsolutely that you have been recognized, do you think that will committed to helping these draw more attention and garner organizations continue their criticalmore nominations out of Atlantic Canada mission despite school closures.

The going forward? work our community partners do to DF: Absolutely.

We’ve a lot feed young Canadians is sogotten important,” of good press highlighting the island said Save-On-Foods President Darrell cattle industry.

I’m positive you’ll Jones. “We are grateful to Breakfastsee more farms in our neck of the woods Club of Canada and our other partners nominated next year. And I have to give who have joined forces with us to the Canadian Cattleman’s Association supportrecognition our schools and students. for choosing a farm from I know Prince our customers share Edward Island.

Weour are small commitment ournational communities players to in the beef industry I think was awith real credit and willand blow us itaway their to their organization to recognize us. They generosity.” treated all the nominees royally and it was a real class act. It was a wonderful For more information, visit experience.

saveonfoods.com

meatbusiness.ca

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FARM CREDIT CANADA: CANADIAN FARMLAND VALUES CONTINUE TO SOFTEN AMID UNCERTAINTY The average value of Canadian farmland increased by 5.2 per cent in 2019, the smallest increase over the past decade, according to the latest FCC Farmland Values Report.

The 2019 increase follows gains of 8.4 and 6.6 per cent in 2017 and 2018, respectively, and becomes part of a five-year trend of softening growth in average farmland values.

In Manitoba, average farmland values increased by four per cent in 2019, following gains of 3.7 per cent in 2018 and five per cent in 2017.

“The days of sharp increases in farmland values continue to be replaced by more modest growth,” said J.P. Gervais, FCC’s chief agricultural economist.

“Changes in commodity prices, uncertainty around global trade and some challenging weather conditions may be tapping the brakes on an otherwise healthy and robust Canadian agriculture industry.”

The highest provincial increases in 2019 were observed in two of the Atlantic provinces: Prince Edward Island with an average increase of 22.6 per cent and New Brunswick with an average increase of 17.2 per cent.

Ontario, Quebec and Saskatchewan reported average increases slightly above the national average at 6.7, 6.4 and 6.2 per cent, respectively, while British Columbia was closest to the national average at 5.4 per cent.

Manitoba, Alberta and Nova Scotia had average increases below the national average at four, 3.3 and 1.2 per cent, respectively.

For the fourth consecutive year, there was an insufficient number of publicly reported transactions in Newfoundland and Labrador to fully assess farmland values.

Increases in farmland values reported across the country are as wide and varied as the factors that may 18 18

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have influenced them. Average farmland values have increased every year since 1993; however, increases were more pronounced from 2011 to 2015 in many different regions. Since then, Canada has seen more moderate single-digit increases in average farmland values.

The COVID-19 pandemic makes the current economic environment challenging for farm operations and business owners throughout the entire food value chain.

“Given the uncertainty, I expect farmers, ranchers and food processors to continue being careful with their investments,” said Gervais, encouraging producers to have and maintain a risk management plan that considers a broad range of possible economic changes, such as variable production, volatile commodity prices or disruptions to global trade.

This year’s Farmland Values Report reflects factors that influenced average land values and prices in 2019, prior to the COVID-19 pandemic. Any impact from the pandemic will be captured in future reports.

By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture achieve their goals.

FOR MORE INFORMATION AND INSIGHTS, VISIT WWW. FCC.CA/AGECONOMICS. FCC is Canada’s leading agriculture and food lender, with a healthy loan portfolio of more than $38 billion.

Our employees are dedicated to the future of Canadian agriculture and food. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and food industries. As a self-sustaining Crown corporation, industries and communities we serve. Visit fcc.ca or follow us on Facebook, Instagram, LinkedIn, and on Twitter @FCCagriculture.

2019 | 100TH ISSUE

NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO 2020 MEATEX CANADA POSTPONED NEW BEEF MARKETS

MeatEx Canada 2020 has announced it will be carefully watching and taking the advice of the relevant Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility postponing its 2020 event originally scheduled for July local and global authorities and assure you that all

By Amywill Reid, Peace Archplace News February 4-6, 23-25. The event now take appropriate health and safety measures will be in place 2021 at the Enercare Exhibition Centre. facility is in the works when Canada later the beginning of so as toMeatEx not emit odours.

Andopens while there is aninoperational A federally licensed beef processing 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC.

next year. only process a limited number of cattle.

“There’s a new building coming forward, a new abattoir, I The postponement comes amid ongoing international

Chris Les is general manager of Meadow Valley Meats, think that’s the French pronunciation of slaughterhouse,” uncertainty around the COVID-19 pandemic which “Now, more thantheever, it’sMeadow important for us the company behind project.

Valley Meats is to come said Councillor Mike Starchuk. “So Surrey will have a is sweeping the world, witha better containment together and ensure business continuity. seeking a Canadian Food Inspection Agency license forAs passionate newer facility with capacity so measures people will have the proposed for abattoir, become a federally registered the ability to not have to ship an animal to on Alberta restricting borders and affecting economies theto have advocates thetosocial and economic benefits of meat establishment and expand the operation. This would it processed. The applications have gone through the whole. After Agricultural listening and to concerns from exhibitors, meeting face to face at events, we’re committed to allow the meat products to be transported beyond B.C.’s Food Sustainability Advisory Committee.” boundaries. associations,The andfacility visitors, the decision was taken to restaging a strong start and successful show in February. is proposed on a 25-acre property within the schedule theAgricultural event. Land Reserve at 5175 184th St. The planned “Our focus is on trying to bring a more efficient, sustainable local product to the market, realizing we canCanada do that now 30,000-square foot abattoir in Cloverdale would process up “And

on a positive note, MeatEx will showcase in a very limited sense,” said Les. “I caution people when to 100 head of cattle per day.

In an official release, the company stated, “On behalf of atalking number of exciting elements such as the Modern to them and they say, ‘What a big plant, that’s going According to a city report, that would make it larger than to go allow youand to gothe mainstream.’

Well, yes, if youwhich look will keep all of us hereany at other Farasoo Holding Corporation, we stand Workshops Innovation Zone, processing facility in B.C.. But it would still be in themany contextthousands of B.C., but this still a very niche and plant industry united with the meat industry as wetonavigate the ofistrade buyers smallentire by industry standards, compared the largest meat and we’ll serve a niche industry for producers and for the processing plants in Alberta that process these challenging times.

We’re conscious of3,000 our heads duty of professionals in not tune with marketofdevelopments.” market. It’s certainly going to benew a monstrosity a plant cattle per day. but it’ll be a big upgrade from the site currently.” of care, and reiterate that the safety and well-being

The proposed facility would be fully enclosed and designed For more information, visit meatexcanada.com of exhibitors and visitors is the highest priority. We’re Continued on page 32

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AGRI-FOOD IMMIGRATION PILOT LAUNCH POSTPONED UNTIL MAY Coronavirus crisis has delayed the start date of the longanticipated Agri-Food Immigration Pilot The launch of a new Canadian immigration pilot for foreign workers in the agri-food industry has been rescheduled as the government continues its response to coronavirus.

The Agri-Food Immigration Pilot is now expected to be open to applicants from May 15, 2020 until May 14, 2023. The pilot was supposed to start accepting applications on March 30. It would provide a pathway to permanent residence for workers in Canada’s agrifood sector, specifically the meat and mushroom production industries.

Immigration, Refugees and Citizenship Canada (IRCC) says that people who are currently preparing their application will see delays in receiving supporting documentation, such as proof of education and official language proficiency.

Organizations that provide these services have either temporarily reduced or suspended their operations in response to COVID-19.

Temporary foreign workers are allowed to come to Canada despite the current travel restrictions. Like all travellers entering the country, foreign workers must quarantine themselves for a period of 14 days after arrival. Employers must not interfere with this requirement in any way.

WHAT IS THE AGRI-FOOD IMMIGRATION PILOT? The three-year Agri-Food Immigration Pilot is meant to help retain non-seasonal foreign workers whose work supports Canada’s food supply.

Eligible candidates will have 12 months of full-time work experience, and a job offer in one of the following industries: * meat product manufacturing, which includes butchers, supervisors, and labourers; * greenhouse, nursery, and floriculture production, including mushroom production; * animal production excluding aquaculture.

They will also need a Canadian Language Benchmark (CLB) of four in either English or French, and a high school education. Their job offer must also be outside of Quebec, which has its own agriculture immigration streams.

Canada aims to welcome about 2,750 new permanent residents per year through this pilot. Most of those allocations (1470) are set aside for industrial and retail butchers. The rest will go to food processing labourers (730), harvesting labourers (300), and farm supervisors or specialized livestock workers (50).

For more information, contact wp@canadavisa.com

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April 20204 March/April

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100TH ISSUE | March/April 2019 April 2020 CANADIAN MEAT BUSINESS 21 21

COVID-19 CAUSES CASH FLOW CRISIS Monthly Agri-Business Barometer was already lagging

BY DANbefore KELLYthe pandemic hit. A difficult FOR SMALL BUSINESS the national average For 25 years I’ve been privileged to represent Canada’s small businesses through the Canadian Federation of Independent Business (CFIB). The last several weeks, however, have been among the worst of my professional career of working with and for small business owners. I’ve spent each day reading emails and receiving phone calls with the most heartbreaking stories from business owners who are agonizing about their next moves, trying to balance keeping their employees safe with keeping them paid and protecting the very future of their life’s work.

While most of the focus has been, understandably, on the growing health implications of the COVID-19 pandemic, the resulting economic emergency has hit us hard. Each day, a growing number of Canadian small businesses have closed their doors, either due to a lack of customers from the need for social distancing or by government order. Since it began, we heard the stories of businesses being shuttered and employees being laid off. To better assess the landscape and provide real time information to policy makers, CFIB has been surveying our members every week to determine the impact. It has been staggering.

Nearly 80 per cent of small businesses are fully or partially closed due to COVID-19 with little or no revenue coming in, while their bills continue to pile up.

Half of small business say they are not sure they will survive if current restrictions continue until the end of May. CFIB’s Business Barometer which measures business confidence has hit its lowest point since being created 32 years ago.

Agri-businesses are not immune to the economic repercussions of the COVID-19 pandemic. CFIB’s 22 CANADIAN MEAT BUSINESS 22

March/April April 20204

2019 harvest, ongoing trade and market access issues, rail blockades and costly carbon taxes had already taken a bite out of business optimism in the agriculture sector.

More uncertainty and disruptions to global trade will not help matters.

Our latest survey data indicates almost a third of CFIB’s agri-businesses have had to scale back operations and are only partially open due to the COVID-19 pandemic.

As spring planting season arrives, farmers and agribusinesses are worried about the health and safety of their family and employees during a critical time for their business. The pressure at this time of year on the agri-business sector in terms of cash flow is high and the food supply chain is being tested.

In addition, many businesses who rely on the roughly 60,000 seasonal agricultural workers and other Temporary Foreign Workers (TFWs) to plant, grow and harvest the crop, are extremely worried these workers will not arrive in time. The Federal government has been working to address these issues and early on in the crisis exempted TFWs from the travel ban. However, it has been a challenge to get these skilled workers to Canada as countries such as Mexico and Guatemala have closed down visa offices and borders making processing and travel difficult.

We know when these workers arrive in Canada, they must self-isolate for 14 days before doing any of the work they were hired to do. To help with these costs, CFIB was pleased the federal government announced $50 million ($1,500 per employee) to help businesses with the costs of wages and housing and to provide this 14-day isolation period to these much-needed workers.

Health and safety is of utmost importance and many

2019 | 100TH ISSUE

there is a growing consensus across business, labour and economic groups that the best support in this unique situation is to prevent layoffs in the first place.

Financially supporting the private sector to retain jobs even when the business income is cut to zero is the best way to fight the unique economic crisis created by the COVID-19 health emergency.

agri-businesses have proactively retrofitted housing or made arrangements for these workers to self-isolate upon arrival in Canada.

This crisis has also caused Canadians to give more thought to our food supply chain and food security. CFIB appreciated the announcement by Federal Public Safety Minister Bill Blair that deemed workers in agriculture and supporting industries as essential. Federally declaring all farming, agriculture and those in the food supply and processing chain as an essential service reflects the importance of our food supply chain and recognizes food security as a top priority for our nation.

Canada needs to recognize the importance of food production and farming at all times – not just in times of crisis.

Other industries and businesses deemed as nonessential by provincial and federal governments who have been mandated to close or only remain partially open have been looking to CFIB for guidance in unprecedented numbers. The volume of calls to our Business Help Line has risen more than ten-fold in the past several weeks with people looking for answers.

They are looking for ways to keep their staff employed by reducing their operating costs to somehow weather this massive disruption. Others want to know how Employment Standards apply to this extraordinary situation and how to access the new government programs that were announced. The stories are soulcrushing.

We’ve been pleased to see the federal government accept input from the business community and offer up a program of a 75 per cent wage subsidy.

While it may feel like a case-study of worst-case, abstract, economic theory, this is our new reality. Our survey found that about half of small businesses across Canada were already at least partially shut down, led by firms in the service and restaurant sector. Twentyeight per cent are fully closed due to COVID-19. We will be surveying again this week and every week for the foreseeable future and presenting our findings to government to assist their decision making.

Policy makers must understand, even if only a portion of these businesses fail as a result, long-term damage to the economy will be very difficult to repair. We believe the best course of action is to find ways for employees to remains connected to their employers. And while it is understandable that attention is on the COVID-19 health battle, we need parts of government to begin focusing on what our economic recovery will look like.

If the private sector has laid off half the workforce, it will be months and months before the puzzle is put back together. If, on the other hand, governments temporarily support a significant part of the wage bill when businesses cannot, workers will retain their jobs and return to work the day the emergency ends. We need to win the COVID-19 health battle and get the economy back on track as quickly as we can.

Dan Kelly is the President and CEO of the Canadian Federation of Independent Business (CFIB), Canada’s largest association of small and medium-sized businesses with 110,000 members (including 7,200 agri-businesses) across every industry and region.

We are providing as much guidance as we can for the tens-of-thousands of business owners calling us, but it’s critical governments step up now - with robust economic leadership and absolute clarity of purpose.

While we need to ensure strong supports are there for the growing numbers of the unemployed,

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