January/February 2018

January/February 2018

BIXS AND BLOCKCHAIN:

THE FUTURE OF MEAT SAFETY, TRACKING AND FINANCIAL SECURITY?

TOP ECONOMIC TRENDS OF 2018 11 COUNTRIES AGREE ON CPTPP PUSH TO SLAP ‘SIN TAX’ ON MEAT IS MISGUIDED Q&A WITH EMILY RITCHIE: SHAPING YOUTH IN THE INDUSTRY

January/February 2018 22 CANADIAN MEAT BUSINESS July/August 2017

meatbusiness.ca

January/February 2018

5 6 10 13 15 18 20 22

Better Food through Better Data Communication

By Lilian Schaer

BIXS and Blockchain: The Future of Meat Safety, Tracking and Financial Security?

By Scott Taylor

Farm Credit Canada’s 2017 year in review

By J.P. Gervais

Shipping Risks – Avoid Sending Pests with Your Products

By Alice Sinia

A New, Mellower Trump on NAFTA?

By Chuck Jolley

11 Countries Agree on CPTPP Q&A with Emily Ritchie: Shaping Youth in the Industry

By Cam Patterson

Push to slap ‘sin tax’ on meat is misguided

By Sylvain Charlebois

24 25 27 30 31 32 32 34

Top Economic Trends of 2018: Global economic landscape

By Martha Roberts

Online Marketing Strategies for the Meat Department

By Ronnie P. Cons

Beef supplies up, strong demand forecasted

By Brian Perillat

Food & Beverage Canada is launched New Housing Standards Better Protect Agricultural Temporary Foreign Workers Hollymatic’s Super Patty Machine Is Industry Favorite Rabobank Global Animal Protein Outlook 2018:

Production Growth Continues, Bringing Increased Competition

Canadian farmers burnt out by government red tape

By Marilyn Braun-Pollon

January/February 2018

3

4 meatbusiness.ca

January/February 2018

September/October 2017 CANADIAN MEAT BUSINESS 19

GUEST EDITORIAL

September/October 2017 Volume 16 Number 5

January/February2018 2018Volume Volume17 17Number Number1 1 January/February

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Lilian Schaer, J.P. Gervais, Alice Sinia, Chuck Scott Taylor, Chuck Jolley, Dan Kelly, Ronnie P. Scott Taylor, Chuck Jolley, Sean Moon, Marilyn Jolley, Sara SylvainPlace, Charlebois, Martha Roberts, Ronnie Cons, Amy Reid

Braun-Pollon Phil Franz-Warkentin

P. Cons, Brian Perillat, Marilyn Braun-Pollon

CREATIVE DIRECTOR Christian Kent

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

CANADA 150 BRINGS EAST BETTER FOOD AND WEST BETTER TOGETHER THROUGH DATA LITERALLY COMMUNICATION

By Lilian Schaer, Ag Innovation Ontario

In honour of the country’s 150th birthday, Canada Beef and Fairmont Vast amounts of data are being collected on Canada’s farms through the Hotels and Resorts joined forces to celebrate how Canada’s cultural advent of precision agriculture technology and the Internet of Things (IOT) diversity hasofinfluenced the evolution of our cuisine.

Many types tools, equipment and devices gather data on everything from At a recent Beef an andanimal Toronto’s Fairmont York highlighted crop yields event, to howCanada many steps takes in a day.Royal However, much the Asian influence in Canadian cuisine featuring the Royal York’s Executive of that data is underutilized because it’s collected by systems that don’t Chef or Robert Mill’s and Chef Clinton Zhu from Shanghai.

Chef Mills’ commitment to can’t communicate with each other. sustainability and sourcing local set the stage to showcase Canadian grown and The need for better decision-making on farms through better data use raised beef and produce.

resulted in Ontario Precision Agri-Food (OPAF), a partnership of agricultural

The day began with a farm tour, Agri-Food bringing east and west together. home organizations led by Ontario Technologies (OAFT)Professional that’s economist Mairlyn Smith guidedplatform a grouptoofconnect top culinary mediadata. and developingand an author open agri-food innovation and share influencers as they embarked on a full day of epicurean exploration, delving into The goal, according to lead director Dr. Karen Hand of Precision Strategic the narrative of taste and terroir. Much like wine, the characteristics of Canadian Solutions, is getting data, wherever it exists (both data repositories in beef are shaped from a terroir effect.

industry or government and data generated by countless sensors) so it can

At Farm, near important Caledon, Ontario.

Alberta rancher Smith-Fraser beSunnymead used to help advance food production issues Kelly like food safety, joined Will Sheard of and Sunnymead and shared the stories of how they raise traceability and plant animal disease surveillance.

Canadian beef. The farmer and rancher pair offered an insider’s perspective on the For example, information about the prevalence and control of insect pests similarities and differences in raising beef across the country.

like cutworms that damage soybean crops lies with many different people

While feeding and housing cattle can be quite different between these two parts and organizations, including university and government researchers, crop ofadvisors, the country, the similarities significant. “We do the very best we can for our input suppliers andare farmers. livestock and are continually advancing our methods with our animals’ and land’s There is no single spot where all of the information about a particular pest best interests in mind,” said Smith-Fraser.

can be accessed in a robust, science-based system and used in decision-

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. ©2015 We Communications West Inc. All rights reserved.

8 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

Sheard it up.

“People askplatform me why Iwill farm – andHand one of the main reasons makingsummed and that’s where OPAF’s help,” says. is that 97 per cent of farms are still family run. I feel blessed to work with my dad Pilot projects are underway with Ontario’s grain, dairy and poultry producers every day and learn the craft of raising good quality beef like my grandparents and to identify their needs in areas like crop protection, sustainability and food my great grandparents did.”

safety and how OPAF can provide data-driven solutions to benefit farmers.

Grass and grain-fed beef went head-to-head in a terroir tasting experience, before “We sit down with farmers, advisors, associations, government and guests indulged in a gourmet picnic packed up in bento boxes with beef and researchers to find out what data they have, where they exist and if we were seasonal, regionally grown foods.

able to connect them, what value or benefit that would offer participants –

Back the Fairmont York, guests were treated tooraon Canada exclusive eitheratspecific to theRoyal commodity they are producing larger150 food-related maple and Chef recipe demo of smoked brisket and braised beef issueswhiskey such ascocktail food safety or impact on trade,” she explains. short rib. For the grand finale, guests were treated to an East meets West themed And OPAF’s efforts are gaining global recognition. Earlier this year, Internet dinner where the Chef duo presented different preparations of beef, reflecting of Food and Farm 2020, a large project in the European Union exploring unique cultural influences. Dishes like Yonge Street Sirloin with Gremolata and the potential of IOT technologies of European food and farming, recognized Mushroom, Oven Roasted Orange Beef Tri-tip with Shanghainese Sauce and OPAF as one of three global projects to collaborate with.

Charred Sirloin Roll with Pickled Asparagus were all part of the event, showcasing “This is work goingoftoCanada’s be changing theand face of data enablement in Canada and the hard farmers ranchers.

contributing globally,” says Tyler Whale of Ontario Agri-Food Technologies

“I am thrilled to be part of such a unique series of events connecting chefs and (OAFT). “We are creating a platform that is the base of something new, and paying tribute to high quality ingredients like Canadian beef,” said Chef Zhu. “Once although we are piloting this in Ontario, it will be available nationwide to we take the time to get to know where our food comes from and how it is crafted, those who want to use it.” we can truly appreciate its beauty.”

OPAF partners include OAFT, University of Guelph, University of Waterloo,

“In working with our global partners, we’re exploring how far the Canadian pantry Niagara College, Vineland Research and Innovation Centre, Livestock has come,” said Joyce Parslow, Executive Director of Consumer Relations at Research Innovation Corporation, Ontario Fruit and Vegetable Growers Canada Beef. “To continue pushing culinary boundaries, we’re working with Association, Grain Farmers of Ontario, Ontario Federation of Agriculture, international chefs and pairing them with leading local chefs to demonstrate how Farm Credit Canada, Ontario Agri-Business Association, Bioindustrial Canadian ingredients have earned a reputation on the global stage. In building Innovation Canada, and Golden Horseshoe Farm and Food Alliance. these relationships, we aim to inspire Canadians to continue expanding their This project was funded Growing Forward 2, a federal-provincial-territorial pantries, embracing global by flavours in their daily cooking.”

initiative. The Agricultural Adaptation Council assists with GF2 delivery in Ontario.

For more information, visit canadabeef.ca. meatbusiness.ca meatbusiness.ca

September/October2018 2017 CANADIAN MEAT BUSINESS 5 January/February 5

BIXS AND BLOCKCHAIN: THE FUTURE OF MEAT SAFETY, TRACKING AND FINANCIAL SECURITY?

By Scott Taylor

“The Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”

- Don and Alex Tapscott, authors, Blockchain Revolution (2016) For Monica Hadarits, the Programs and Certification Director for the Canadian Roundtable for Sustainable Beef, Blockchain is definitely on her radar.

around the world are being honestly paid for the products they are providing.

For the uninitiated, Blockchain is the financial ledger of the future and yet it is a technology that is already here.

For many in the agricultural sector, it is still a bit of a mystery. However, it could be the answer to dozens of problems facing agriculture around the world because it allows its users to record financial transactions and follow any supply chain simply and without fear of tampering or hacking.

“Blockchain is certainly gaining momentum and appears to be a promising solution for traceability in agriculture,” said Hadarits, in an email interview with Canadian Meat Business. “The CRSB’s Certified Sustainable Beef Framework is outcome-based and therefore we have set requirements for traceability and chain of custody, but have not prescribed a specific platform to be used.

Amazingly, it started as a tracking program that served as the backbone to the cryptocurrency Bitcoin. Now, with a growing list of practical uses, it could very well be the way in which we track the supply chain, guarantee that protein products are safe for the consumer and make sure that farmers and ranchers

“(But) the CRSB is aware of this emerging technology for use as a traceability solution in agriculture. The CRSB’s Certified Sustainable Beef Framework sets the requirements for traceability (live cattle) and chain of custody (beef post-slaughter). The traceability of live

6

January/February 2018

Of course, here in Canada, it’s already in use.

cattle is audited at the primary processor, and then the chain of custody is audited through to the consumer.

It is the responsibility of the supply chain to prove they are meeting the CRSB’s outcome-based requirements, so we have not chosen one data solution.”

“In the most basic sense the Beef InfoXchange System (BIXS) currently does what Blockchain does -- chain of custody, which once data is entered by a producer cannot be changed by another -- while protecting the privacy of the contributors of the data.

Deborah Wilson is the Sr. Vice-President of BIXSco Inc. BIXS is currently being used in Cargill’s Canadian Beef Sustainability Acceleration Pilot Project. She is a passionate and enthusiastic promoter of traceability and sustainability in the beef industry and her company is already working with Blockchain technology.

“This continues through the animal’s lifetime and on average a beef animal will move three to four times in its life. BIXS relies on its integration with the Canadian Livestock Traceability System (CLTS) to confirm and share data which ensures the veracity of the data, based on producer permissions. CLTS is the tracking system for animal and human health which operates under an MOU with CFIA, while BIXS is the value-added traceability system, not mandatory, but supported

by CLTS. CLTS and BIXS have a strong, supportive working relationship.”

BIXSco Inc. has been a CRSB member almost since its inception. Wilson herself sat on the Verification Committee as an industry adviser for two years and she’s currently on the Marketing-Communications committee. She is also a new member of the national council for CRSB. Wilson speaks to producers at numerous meetings throughout the year as well as colleges and universities on traceability, sustainability and what it means to processors, retailers, consumers and trade partners.

“I attempt to give producers a basic overarching view of the necessity for audits, and the CRSB, as well as chain of custody tracking,” Wilson explained. “We are also working with Blockchain technology as we move past the point of harvest of live animals.

The importance of data management in farming and ranching has never been more important that it is today and Wilson is at the forefront of the industry. Wilson says that in Canada, “We are already 10-20 years ahead of the United States when it comes to traceability and sustainability.”

However, without committing to platforms such as BIXS and Blockchain to trace protein from farm to table, Canada could fall behind quickly. continued on page 8

January/February 2018

7

“I correct many individuals, personally and on social media, when they say the beef industry needs to track animals and record what we do with them,” said Wilson. “We can do it and we are doing it, and the momentum from programs like the current Canadian Beef Sustainability Pilot (www.cbsapilot.ca) and the completed McDonald’s Verified Sustainable Beef Pilot, are driving adoption in the cattle industry. BIXS tracked chain of custody for the first pilot and is one of the organizations that created the second pilot.

“But what we need is more encouragement for the producers. Mt passion is to create an industry with a long-term future, but I worry about that. Right now, the United States has virtually no traceability compared to what we have in Canada and federally, we aren’t seeing much interest. But there are States that have reached out to us and I know from experience, that if the Americans get a hold of this, they will leave us in the dust.”

So why is traceability and as a traceability technology, Blockchain, so important to the agricultural industry in general and the beef industry in particular?

According to Bernard Marr, an author and data analyst, in Forbes Magazine, “Blockchain comes with a range of benefits that no other technology has been able to provide the agriculture and business community in the past.”

“Transparency and immutability: As it is a shared database, data are readily available to all parties involved in any kind of transaction, providing maximum transparency. The immutability of data makes it even more trustworthy as well. So, once the data are created, it can’t be deleted or altered.

“Process integrity and disintermediation: The parties in any transaction will know that everything will be done exactly as the agreed upon protocol dictates. Readily available and trustworthy data also eliminate any needed intermediation by a third party.

“Lower costs and faster transaction: Blockchains have a great potential to cut overall transaction cost and time by eliminating the overhead costs of exchanging assets and the involvement of third-party intermediaries. For example, the cost of the financing of invoices, can be reduced by as much as 25 percent because Blockchain reduces risks such as the multiple selling of invoices.

“Access to high-quality data to everyone: All parties involved in a transaction will have accurate, timely, consistent and complete data they need to know to make a well-informed decision.”

Don Close, an animal protein analyst with Rabobank told Bloomberg News that the “Need is there to use Blockchain technology to track the movement of cattle, 8

January/February 2018

cattle payment and ownership.

“Overall, there is incredible potential in agricultural commodity sales, both in the U.S. and globally,” Close continued. “They are using Blockchain in wheat merchandising in Australia and a lot of the attention has been given to that development because if it’s successful in wheat trade there, there will be interest to adapt the technology into other agricultural and livestock markets as well.”

In 2011, the United Nations indicated that worldwide, agriculture is the largest financial sector in non-urban areas – 70 per cent. However, it also provides some of the world’s poorest people with their only source of income. According to Bloomberg News, it is also the industry that provides the biggest disconnect between supplier and retailer.

“Using Blockchain, a more direct link can be established, ensuring that farmers receive fair payment for their produce and enabling retailers to verify that they are getting what they’ve paid for,” said Close.

And it’s not as if Blockchain isn’t already being tested in the United States. In fact, Wal-Mart is already trial testing a tech project it developed with IBM to monitor produce in the United States and pork in China. The goal in this case is to improve food safety.

For Wal-Mart and other large merchandising firms, Blockchain can be used to automate all supply-chain certification processes and to protect global supply chains from counterfeiting. Forbes Magazine has also indicated that there are “innovators researching ways in which DNA can be recorded and tagged to an animal, and recorded in the Blockchain.”

“It is information that can easily be made available to end users and customers using mobile phones and apps,” Forbes added.

Dr. Marek Laskowski of York University, the University of Guelph and Seneca College in Ontario, received his Doctorate in Electrical and Computer Engineering from the University of Manitoba in 2011. Together with York University’s Dr. Henry Kim, he wrote a paper entitled Agriculture on the Blockchain: Sustainable Solutions for Food, Farmers, and Financing.

Their paper was updated in December 2017. In it, the two scholars write about food safety and the important role that Blockchains can play in guaranteeing high quality food from farm to plate.

“Food quality is clearly related to chronic illnesses such as heart disease, liver damage, stroke, diabetes and cancer, to name a few,” Kim and Laskowski wrote. “We can significantly reduce chronic illnesses by improving the quality of food available. That requires an answer to the following question: Why do we eat poor quality

food? This large problem can be divided in three parts: production, delivery and sale.

data being reported by certification bodies). However, neither will take on the role of traceability tracking.

“Food production starts at the farm. Farming always implies high risks — natural disaster, harvest failure, accidents, etc. — that directly affect what a farm can offer. Market conditions and large agricultural corporations can also make the lives of small farmers challenging. The companies often abuse their positions by using expensive fertilizers and patented GMO-seeds to gain competitive advantages over smaller operations.

“There will be many things to learn over the next year.

We are moving into the implementation phase, which includes raising awareness of the framework, training auditors, accepting certification bodies, providing interpretation guidance, and supporting supply chain participation.”

“Another problem is in the logistics of food delivery.

Modern agriculture is under the siege of large chains’ producer-distributor-consumer model. Large-scale food producers often organize industrial food production in developing countries. They then create large-scale distribution networks to sell the food globally.

As Forbes points out, “At its heart, a Blockchain is simply a digital ledger.” According to its creators (2008), an anonymous single person or group of people calling itself Satoshi Nakamoto, “Blockchain is a decentralized database that records transactions of almost any type and enforces contracts related to them automatically, based on conditions defined by the participants. The transaction history is appended to the chain rather than tracked via a paper trail. Because the system is distributed and encrypted, it’s difficult to tamper with or hack.”

“Producers are often unable to sell their products directly to consumers, having to appeal to traders or distributors who buy their product cheaply. Large companies are able to cheaply mass-produce food and fill the distribution channels, but this food is never completely consumed. The result is the creation of a new problem: food waste and disposal. Resources like fuel and fertilizers are used to produce and distribute food that will never be consumed, creating waste.

“Fortunately, health, eating, farming, agriculture and logistics are interconnected, and we can solve these challenges through modern technologies, utilizing experts who understand the systems. Blockchain technologies offer good financial instruments to provide farmers a timely and complete payment for their efforts.

Using these technologies will help to avoid risk and make the farmer’s life easier.

In the meantime, technologies like BIXS and its relationship with Blockchain continue to expand.

It is the future of economics, of supply chain tracking, of food safety and of fair and honest transactions. And thanks to passionate people like Deborah Wilson, it’s already a big part of Canadian beef production.

RELIABLE FOOD PROCESSING EQUIPMENT

www.birosaw.com

“This means Blockchain technologies must be simple to understand and use. A number of startups have been working in this space. One such company has developed an entire platform to make Blockchain use simpler for farmers.”

Back here in Canada, traceability is and has been an important part of the nation’s supply chain. It could be said that it’s the fastest growing aspect of the Canadian Roundtable for Sustainable Beef.

“The CRSB will be providing background on sharing the certification status of a beef operation, as data sharing is required to participate in a beef supply chain that is sourcing product from certified operations,” said Hadarits. “However, this is not required for a producer or process to become certified.

Ground Fresh

Auto-Feed Mixer Grinder Stainless Steel Bowl, Ring, Auger Hopper Capacity up to 800 lbs.

(362.9kg) Output Capacity up to 250 lbs.

(113.7kg) per minute Motor 20HP (14.9kw)

Md. AFMG-56MK111

“The CRSB has hired NSF International to serve as the third party Oversight Body of the framework. CRSB and NSF International will work together to complete different data management functions (e.g. compiling

272RB-1-17

January/February 2018

9

FARM CREDIT CANADA’S 2017 YEAR IN REVIEW

By J.P. Gervais

If I had to sum up 2017, I’d say, “Hurry up and wait.”

It was a year of endings (think of the period with no interest rate hikes) that will produce a difference in 2018 and beyond. But it was also a year of new beginnings (think of the Barton Report and the growing presence of young Canadian farmers).

Much of what happened in 2017 that was newsy didn’t have immediate clout, but many of its big-ticket items will have long-term impacts on Canadian agriculture.

So, as it winds down, I’m taking a look at the year that was.

January: Ag Economics’ projections - 2017 report card This month’s entry didn’t influence Canadian agriculture at all. But in the interest of transparency, we could look back to the projections we made in January for energy prices, the loonie and interest rates. And, maybe, boast a little.

10

January/February 2018

Hit: We said oil prices would average $US50, and Alberta’s gasoline and diesel prices would average $0.86 per litre and $0.88 per litre, respectively. Good forecasts!

Miss: We projected the loonie to average US$0.75 throughout 2017; the actual average turned out to be US$0.77. Our bad—we didn’t see coming the two hikes to the Bank of Canada key interest rate. The low inflationary figures fooled us all into thinking that the Bank wouldn’t be able to tighten policy the way it did in 2017.

Impact: Sadly, none.

February: Barton report calls Canada an agri-food powerhouse The Advisory Council on Economic Growth identified “agriculture and food” as one of eight key areas of

future growth in Canada. That was some impressive acknowledgement of the work the industry has done to make food manufacturing a shining star in the overall Canadian economy. Its GDP growth of more than 5% in 2017 easily outpaced overall 3% manufacturing growth.

The report was influential enough to have landed the sector a spot in the 2017 federal budget, which set targets in 2025 to have grown Canada’s agri-food exports from $55 billion in 2015 to at least $75 billion.

There are significant dollars set aside to achieve this.

Impact: Still to come, but it will be formative March: Comprehensive Economic and Trade Agreement (CETA) Too much big news in February (so I’m cheating for March’s news).

In February, the European parliament approved CETA in the first step towards preliminary implementation (which happened in September). Several individual EU member states quickly approved the agreement, and Canada followed suit in May. This will be an important step in Canada’s efforts to diversify export markets beyond the U.S. and Europe is a great place to start.

government’s to be slower able to protect itsin May: New Agresponsibility Census shows decline citizens, protect labour standards, protect number of farms, young operators upthe environment,

agreeme move fo

The number of farms in Canada between that total we share, Canada and Europe,” saiddeclined the Canadian 2011 and 2016, but at a pace slower than each of the Prime Minister. previous four 5-year periods. Farm operators are aging, “I certainly looking forward to a seeing theshare impactof the but young am producers made up greater that CETA will have future trade deals between otherand farm population in on 2016 than in 2011. Technology scale economies have led that to farm consolidation—but countries where they realize we have raised the bar in new consumer food preferences have resulted in a demonstrating that trade can and must work for everyone. greater of smaller farmsreflected focusing on supplying And thatnumber is something very much in the G20 value-added communiqué.”food products.

Most of July 1st

while at the same time sharing and promoting the values

The Euro Canada’ bill to im and regu

Approva in Europ Impact: 3 words. Opportunity.

JULY 1 DEADLINES PASSED Opportunity. Opportunity. looking The joint statement from theshow two leaders says the June: Food retail prices little inflation The dea agreement “will enter definitively into force once the of half a An interesting story throughout has been parliaments in all member states of2017 the EU ratify thethe text between evolution retail prices.

Many constitutional food products according of to food their respective domestic euros ($ recorded a retail price decline over the last 12 months: requirements.” boost th

fresh and frozen meat (-0.8%), dairy products (-0.8%), Four EU countries have held votes and fresh fruits (-0.4%).

Overallratification annual inflation registered approved CETA to date: Latvia, Denmark,from Spain and 1.4% while prices of food purchased stores climbed Croatia. a relatively low 0.6%. Lower prices certainly contributed to the strong appetite of consumers for “This is a good Canadian foodoutcome,” products. said Jason Langrish, the

TRUDEA PROTEC With U.S First” an topics o

executive director of the Canada Europe Roundtable for

Impact: See May.timeline with path forward. CETA is Business. “A firm

Europea final stat agreed t the grou mutually their ma

a survivor. It’s the first of the next generation of trade

It’s traditionally Canada’s fourth largest agriculture and agri-food export market. CETA can potentially lead to an additional billion dollars of exports annually for the red meat sector as well as greater market access for grains and oilseeds. In return, EU cheese exporters gain greater access to the Canadian market.

The lang the trad keeping or regula trade pr instrume

Impact: One billion dollars April: 2016 farmland values’ rate of growth decreased again Canadian farmland values grew again in 2016, but its year-over-year rate of growth slowed—for the third consecutive year.

Trudeau back off system.

Increases in farmland values are typically supported by the combination of strong farm cash receipts and low interest rates: Canadian crop receipts climbed 3.1% in 2016 while interest rates continued to trend downward. Crop receipts may decline slightly in 2017. That, along with 2017’s increases to interest rates, may slow the rate of farmland values even more.

“We hav past dec in place agricultu trade de comes t

“But wh on histo for our p internati

Impact: Smaller increases will keep farmland values in line with farm income, contributing to market stability.

28 CANADIAN MEAT 2018 BUSINESS July/August 2017 January/February

11

THE BEST DEFENSE IS A STRONG OFFENSE

July: Canada sees first interest rate hike since 2010

The Bank of Canada raised its benchmark interest rate twice in 2017: on July 12th and September 6th.

The Canadian economy recorded a strong performance in the first 6 months of the year with Q1 and Q2 GDP annualized growth rates of 0.91% and 1.05%, suggesting the oil price decline of 2015 and the resulting decline in business investment is now mostly

By Ronnie P. Cons behind us.

October: U.S. economy races; the Fed shrinks its balance sheet

In October 2017, the U.S. Federal Reserve reversed their policy of quantitative easing. The policy reversal will gradually shrink a balance sheet estimated at US$4.5 trillion of assets, one of the last remnants of the 2008 financial crisis in the U.S. In 2008, the Fed had injected monetary stimulus and quickened economic recovery by lowering interest rates with quantitative easing.

Red meat is often wrongly portrayed as being unhealthy.

Even chicken has been getting attacked by Impact: A higher interest rate environment implies a someon in financial the media unhealthy or not environmentally friendly.

While it may possibly raise long-term interest rates in focus riskas management. the U.S., the registered 3% growth in the U.S. economy Vegan, fish and other non-meat dietsget haveunderway been proposed as liver, 625 grams of cooked beef or an astounding 2.4 kg of August: NAFTA renegotiations suggests they can weather the challenge.

PROMOTING THE HEALTH BENEFITS OF MEAT AND POULTRY

healthier alternatives. The result of this onslaught of negative

This arguably the biggest economic story of 2017. meatwas messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but The government initiated talks adjust the terms truthU.S. trumps misinformation.

Parents andtoother consumers want what issuggesting best for theirit health and that of their families. of NAFTA, may even withdraw from the They are alsoif aware that a lot ofisn’t falsereached. information is out there agreement a compromise The U.S. and as such, are open to scientific facts that can correct their has long been Canada’s single largest trading partner, misconceptions.

with 31% of agriculture exports (23% of crop exports This 86% provides an opportunity forgoing retail meat departments and of animal exports) south of the border to implement an instore ‘Healthy Meat Facts’ nutritional in 2016. The U.S. is also an important destination for campaign to set the record straight and convince their Canadian foodmeat andand beverage products, for customers that poultry are actually accounting good for one’s 74% allthat exports in 2016. But, conclusions healthof and they should increasewith ratherno than decrease to their purchases of it. The belowthe can final have report at this time, we’llcampaign have to outlined wait to write a direct impact on sales: chapter.

Start by displaying instore posters promoting the nutritional

Impact: Hurry up and wait. value of meat. They should be innovative, eye catching and

be designed to specifically contradict any meat myths. The September: Theallloonie shows some bounce comments should be literature based quoting research papers or MDs for maximum effect. Various posters should The Canadian dollar reached US$0.82 in September, be made - each with a brief but powerful message covering its highest point in 2017.

The upward pattern in the one theme.

spinach.

Iron found in vegetables is harder tofor absorb than theexports. iron Impact: U.S. strength is great Canadian found in meat as it is attached to fibre which inhibits its November: India applies a 50% tariff to Canadian absorption.

peasBrain!

2.exports Eat Meatof foryellow a Healthier Being deficient in the micronutrients found in meat have been India’s was intended to support their domestic linked withtariff low IQ, autism, depression and dementia says after a large acrop in 2016/17 and estimates Dr.prices, Charlotte Neumann, paediatrician at the University of of an equally as large cropininthe 2017/18.

The foodmarket impact was California, quoted article ‘Brain clever eating’. swift: pricesforfor Canadian peas and otherB12 pulse crops Zinc is crucial learning and memory.

Vitamin tumbled. the Indian government preserves theAnd sheaths that protect nerves. followed through a Your tariff Immunity on lentils with and Meat! chickpeas in December. While 3.with Boost long-term demandpowers, for plant-based proteins remains Due to its antioxidant zinc is involved in creating antibodies to fight free radicals that2018 increase ourfor riskpulses for extremely healthy, Canada’s acres are chronic diseases. likely to decline. It could also play into the feed markets 4.for Power Your Muscle Growth with Meat!

Canadian livestock in 2018.

The protein in meat helps build and repair body tissues.

Impact: Far-reaching, into both crop and livestock

Muscles are made of protein. That is why athletes who are sectors. building muscle strength increase their meat consumption.

The protein and zinc found in meat are important for muscle December: Bitcoin soars to a record high! loonie began in May when the CAD traded for $US0.72. growth and repair.

Posters can convey the following healthy meat fact 5.Ok. Meat the Complete Protein!

I is don’t really think this is one of the most important Itmessages: climbed steadily as interest rates in Canada moved Meat contains all of the nine essential amino acids your trends of 2017. Count me among those whothat see bitcoin up. It didn’t strengthen enough to cause problems in 1. Let’s IRON out the Truth on Meat! body cannot make by itself. Say ‘hello’ to histidine, leucine, as a speculative asset, not as reliable currency.

2017, but a low Canadian dollar certainly supports profit “You would need to eat a massive amount of spinach to isoleucine, lycine, methionine, phenylalanine, tryptophan, margins in many ag sectors more easily than a Golden, stronger threonine, and valine. That is why meat is called a complete equal (the iron content) in a steak,” says Christopher The fact is: currency must be stable. Traders won’t use an ecologist and epidemiologist at Harvard University in loonie. protein. anything volatile as a medium of exchange. So, while Cambridge, Massachusetts. (As quoted by nature.com in the 6.the Eat technology Meat for a Healthy behindHeart! crypto-currencies is sound Impact: A strengthening loonie could challenge article ‘Brain food- clever eating’.)

Meat contains lots of the B vitamins needed for the and promising, the search for a different and reliable profitability in 2018.

For a woman to receive her recommended daily intake of 18 production of hormones, red blood cells and for the proper currencyofisyour still nervous on. mg of iron, she would need just 300 grams of cooked bovine functioning system.

Say ‘hello’ to niacin, thiamine, biotin, panthothenic Impact: Zero.

Butfolic it’sacid, fun to think about. acid, vitamin B12 and vitamin B6. They are all found in meat.

J.P.line Gervais is thebest Vice-President Chiefoffense’ Agricultural Economist at The that ‘the defense isand a good does not Farm Credit Canada.

Prior to joining FCC in 2010, J.P. was a professor only apply to sports. It also applies to countering negative of agricultural economics at North Carolina State University and Laval meat health myths.

Implementing an instore ‘Healthy Meat University.

He also held the Canada Research Chair in Agri-Industries Facts’ nutritional campaign to set the record straight on meat andpoultry.

International Laval.

Canadian and It is aTrade goodatway toJ.P. go is onPast-President the offensiveof bythe using Agricultural Economics Society.

He obtained his Ph.D. in economics education your customers and increasing your sales.. from Iowa State University in 1999.

Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of meat and poultry. He can be reached at RCons@CCpacking.com.

January/February 2017 2018 12 22 CANADIAN MEAT BUSINESS September/October

meatbusiness.ca

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 global services dedicated to food safety and quality.

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.

SHIPPING RISKS – AVOID SENDING PESTS WITH YOUR PRODUCTS Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate these challenges, including certification and auditing, consulting, technical services, training and education, food andPh.D., label Orkin compliance,

By Alice Sinia, Canada packaging, and product and process development.

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

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

As products are shipped around the globe, NSF International’s Canadian website provides information they pick up unwanted hitchhikers oncan the following services: along the way. In fact, the transportation leg Certification & auditing: Third-party food safety audits of the supply chain isare the most vulnerable and certifications, which integral components of supplier selection and regulatory compliance.

Accurate to pest activity because shipping vehicles audits are the first step toward successful verification offer prime conditions for pests – an of a company’s food safety system, providing improved abundant supply ofcustomer food and protected brand protection and confidence.

Certifications and audits aresupply available chains for animal spanning and produce in the shelter.

With the agriculture industry, GFSI certification and management globe, thoroughly inspecting shipments for system registration. signs of pest activity and having preventive Consulting: A full-service team approach providing procedures in place is particularly technical resources, expertise and insight for a wide range important, as and pests can cross borders with of food safety quality services.

NSF International provides finished product inspection testing for food, the goods they infest.

packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services Although rarely top-of-mind, pest control during from on-site temporary or permanent technical staffing transportation can pose a significant risk for meat placements, and various types of consulting.

processing facilities. If pests come into your facility on Technical services: one-stop solution for food imports, you could face aA widespread infestation.

If product they compliance and formulation, from concept to finished infest the products you export, your reputation could suffer product, including food and label food. compliance, packaging, as customers receive contaminated product and process development, and shelf-life and product evaluation.

To help prevent pest problems and food contamination, it’s Training and education: Training for thethe global food important to identify which pests threaten facility and industrytake across supplyseriously. chain as an verifyand thatbeverage your shippers pestthe control meatbusiness.ca

September/October2018 2017 CANADIAN MEAT BUSINESS 23 January/February 13

Most Common Pests That Infest Meat Products and Food Processing Facilities In the meat processing industry, pests like flies, cockroaches and rodents are the most common offenders.

These pests shouldn’t be swatted away – they can pose health threats and cause physical damage.

• Flies are the filthiest pests. They feed on garbage, sewage and decaying matter and can transfer germs from these filthy environments to our food. The odours and garbage generated by meat processing facilities also naturally attracts filth flies.

• Cockroaches are the most common – and the most stubborn – pests. They are expert hiders and quick breeders and can easily adapt to any environment.

Cockroaches can contaminate meat with E. coli and Salmonella – two diseases no meat processor wants associated with their brand.

• Rodents can reproduce rapidly as well. Once inside a facility, they contaminate food with their saliva and urine.

They gnaw constantly to wear down their teeth, which can damage food packaging and building materials. They’ve even been known to start fires as they chew on electrical wiring.

Choosing a Transportation Provider You trust your shipper to maintain the integrity of your meat products, so it’s important to choose a provider with an effective pest control program in place. Here are some questions to ask your transportation provider to verify the integrity of their pest control program: 1. Do you practice Integrated Pest Management (IPM)? If the answer is no, that’s a red flag. IPM focuses on preventive measures and relies on chemical treatments as a last resort. Especially when handling sensitive food products, it’s important that your shipper implement proper sanitation, structural maintenance and pest exclusion techniques before using curative insecticide products.

2. Do you have a sanitation and maintenance routine? No matter the type of commercial vehicle, your transportation provider should establish strict and documented routines. They should continuously monitor for pests and identify potential pest harborage sites where moisture or food particles accumulate.

They should address these issues to reduce the occurrence and severity of infestations.

3. Do you have a system for monitoring products for pests before they are loaded for shipment? Routine inspections of imports and exports helps identify pest problems sooner rather than later. By inspecting products and packaging as they are loaded for shipment, pest problems are more easily detected and assessed. When infested products are identified, there should be a system to investigate further, determine the source and develop corrective actions to prevent the problem from spreading.

14

January/February 2018

Preventing Pest Activity in Your Facility In addition to vetting vendors, meat processing facilities need to implement their own pest management programs.

You should adopt an IPM program that proactively addresses potential pest problems and incorporates regular sanitation and maintenance.

As part of your IPM program, work with a pest management provider to create a plan for monitoring incoming shipments. To avoid bringing an infestation in your facility, here are a few things you can do: • Inspect incoming shipments for signs of pest activity, such as dead insects, insect body fragments, insect trails, spider webs, rodent droppings, gnaw marks and rodent urine.

• Use pest-resistant packaging and be sure packages are properly sealed and not damaged before stocking.

• Don’t bring a pallet of goods directly from the transport vehicle into storage areas. Instead, break it down at the loading dock. If there are pests on the pallets, they won’t get the chance to spread further.

• Install insect/fly light traps in shipping and receiving areas.

In addition to inspecting incoming shipments, follow these tips as a general best practice: • Place supplies on open-backed shelving to remove pest hiding spots. Keep products off the floor and spaced out on shelves.

• Implement proper stock-rotation practices so older products are always used first.

• Remove clutter – pests like cockroaches can feed on the glue from cardboard boxes.

• Check cleanliness and orderliness of all coolers and cooler shelving.

• Sanitize all equipment regularly, including hard to reach areas and dead-end spaces in equipment.

• Clean up or dispose of any spilled or damaged products immediately.

• Maintain a dry, cool environment.

By taking a proactive approach to pest control, you’ll be one step closer to preventing an infestation that could impact your bottom line. Work with your pest management provider to create a customized plan for your facility, train staff involved in the shipping process and develop a process for vetting shippers and other vendors. At the end of the day, a proactive IPM approach will help keep your facility pest-free and help you maintain quality food standards.

Alice Sinia, Ph.D. is Quality Assurance Manager – Regulatory/Lab Services for Orkin Canada focusing on government regulations pertaining to the pest control industry. With more than 10 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.om or visit www.orkincanada.com.

A NEW, MELLOWER TRUMP ON NAFTA?

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

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

By Chuck Jolley

DF: Yes, I think we were the first farm

In mid-January, U.S. President east of Ontario as far as I understand.

I’mtoned not sure down why the his eastern Trump pugilistic associations wouldn’t have comments about NAFTA;previously not nominated anybody because there are quitemany to the ‘let’s be friends farms here on PEI doing every and reason together’ level, bit as much as we are as to attain a though. high The level ofCanadian sustainability.Press Anyway, we were very surprised when the PEI reported Trump’s most recent Cattleman’s Association nominated our pronouncements about farm.

NAFTA “has proponents of the CMB: And then you were attending the agreement breathing some relief Canadian Beef conference in Calgary that his trigger and you won. finger is far from the button that would blow up DF: Yeah! That was a very nice moment the deal.” for us. But I don’t like to use the word win actually.

However,comments being The ‘make nice, more-or-less,’ recognized for our commitment was came during an interview with the usually a real honour.

If you want to know Republican-friendly Wall Street Journal. the truth, itstatements was a pretty were humbling His off-the-cuff of the experience.

As I said to CBC when “I’m flexible, no rush, still a chance of they phoned me after the conference, I was a reasonable deal” framework.

He also just a floored, couldn’t believe assumed newlyreally restructured NAFTAit. wouldCMB: help pay for that his Mexican border So now you have been wall, arecognized, tremendous step down from do you think that will his campaign promise that he would draw more attention and garnermake more Mexico pay for it. nominations out of Atlantic Canada going forward?

He still repeated his threat to cancel DF: Absolutely.

We’veget gotten a lot the agreement if he can’t a better of good press highlighting island deal. But proponents from thethe Canadian cattle industry.

I’m positive see and Mexican governments andyou’ll NAFTAsupporting stakeholders in of thethe U.S. all more farms in our neck woods see hisnominated WSJ comments a positive. next year.as And I have to give the Canadian Cattleman’s Association

In an increasingly show aoffarm diplomacy, recognition forrare choosing from Foreign Affairs Minister Chrystia Prince Edward Island. We are Freeland small delicately called Trump’s on the players in the nationalnew beeftake industry contentious renegotiations “sensible” and and I think it was a real credit to their “constructive.”

Her fingers were hopefully organization to recognize us. They crossed, though, since the American treated all the nominees royally and it President has repeatedly demonstrated was a real class act. It was a wonderful an ability to change his mind, often in experience. mid-stream.

More evidence that he’s taken his hobnailed, art-of-the-deal boots off to tread January/February 2018 meatbusiness.ca

15

September/October 2017 CANADIAN MEAT BUSINESS 17

more lightly came during his speech at the American Farm Bureau Federation’s Annual Convention in Nashville. During the mid-January meeting he said “On NAFTA I’m working very hard to get a better deal for our country and for our farmers and for our manufacturers. We want to see even more victories for the American farmer and the American rancher.”

It was a softer comment made politically expedient by the concerns of his ag-centered audience, already wary of the damage a NAFTA pull-out could do after Trump’s ag-bruising walk-away from the Tran-Pacific Partnership. Tossing them something comforting they could chew on would allow him to exit stage-right without undue controversy.

Freeland said Canada had always taken the position that imposing artificial deadlines is potentially harmful.

NAFTA WITHDRAWAL, “WOULD CAUSE IMMEDIATE, SUBSTANTIAL HARM TO THE AMERICAN FOOD AND AGRICULTURE INDUSTRIES AND TO THE U.S. ECONOMY AS A WHOLE. IN THE LETTER, THE ORGANIZATIONS CITE ECONOMIC AND TRADE DATA TO HIGHLIGHT NAFTA’S POSITIVE IMPACT ON AMERICA’S FOOD AND AGRICULTURE SECTORS INCLUDING THE MEAT AND POULTRY INDUSTRY - UNDERSCORING THE FACT THAT CANADA AND MEXICO ARE NOW THE LARGEST EXPORT CONSUMERS OF U.S. AGRICULTURAL PRODUCTS.” Mexico’s Economy Minister Ildefonso Guajardo agrees.

Talking with the influential El Pais, the most widely read Spanish language newspaper, he suggested an immediate NAFTA termination does not appear imminent.

Certainly U.S.-based special interests are working hard to preserve the ag portions of the agreement.

Trump enjoyed tremendous support in rural, mostly agricultural states and that voting bloc is expecting some payback.

Mike Miller, the pro-NAFTA Chairman of U.S. Wheat Associates (USW) says the United States, Canada, and Mexico are all strong advocates of free trade and science-based regulations. “We should go big in this negotiation and agree to align around those gold standard rules. That will ensure that all three countries can’t throw out regulations that are just flimsy excuses to restrict trade.”

Miller cautioned, “We believe wheat should be allowed 16

January/February 2018

to cross the border and be treated equally. Today Canadian wheat can move into our handling system freely, but U.S. wheat farmers don’t have the same opportunity in Canada. NAFTA renegotiation is a good context with which to address this issue.”

The North American Meat Institute was unusually forceful, publishing this comment in November: “The Meat Institute and U.S. Hide, Skin and Leather Association (USHSLA) joined more than 160 organizations in writing America’s 50 governors to encourage support for a modernized North American Free Trade Agreement (NAFTA) that maintains and strengthens U.S. food and agricultural trade to Canada and Mexico. The letter also calls on the governors to oppose efforts to withdraw from the agreement.”

NAFTA withdrawal, the organizations contend, “would cause immediate, substantial harm to the American food and agriculture industries and to the U.S. economy as a whole. In the letter, the organizations cite economic and trade data to highlight NAFTA’s positive impact on America’s food and agriculture sectors including the meat and poultry industry - underscoring the fact that Canada and Mexico are now the largest export consumers of U.S. agricultural products.”

The 160+ American trade organizations expanded on their demands, urging “governors advocate for a ‘do no harm’ approach regarding food and agriculture trade in NAFTA negotiations by working to preserve and expand market access for U.S. agricultural products in Canada and Mexico.”

Even more important to Trump and his need to retain good will with an important segment of his voting base, the U.S. Chamber of Commerce published an analysis of the 12 states that stand to lose the most from a NAFTA withdrawal, all vulnerable Republican redoubts in the 2018 midterm elections. According to the analysis, “Michigan, Wisconsin, North Dakota, Texas, Missouri, Ohio, Iowa, Indiana, Arizona, Nebraska, Pennsylvania and North Carolina would be most adversely affected should the U.S. withdraw from NAFTA.” Of course, none of this could affect Trump’s often mercurial tendencies. He usually listens to a different drummer and the beat he hears could be seriously out-of-step with political realities. Taking necessary steps to safeguard their ag economies against his unpredictability, Mexico has already signed a major trade pact with Argentina, and representatives from Ottawa and Mexico City are talking with each other about bypassing the U.S. and entering into direct, nonNAFTA agreements.

Chuck Jolley is the President of Jolley & Associates and is a respected writer, editor, publisher and public relations expert with more than 25 years experience in the meat and poultry industry.

Join the 109,000

Canadian small businesses that are set up for success!

AS A CFIB MEMBER BENEFIT FROM: RESOURCES

Free expert advice, tools and templates.

SAVINGS

Partnership programs can save you $5,000+/year on essential business services.

ADVOCACY

Driving change on government policies that impact your business.

Join today!

1-888-234-2232

continued on page 18

January/February 2018

17

11 COUNTRIES AGREE ON CPTPP Following the U.S. withdrawal from the Trans-Pacific Partnership last year, there was concern this important trade deal could fall apart, hurting the meat industry in this country. However, with Canada leading the way, negotiations with the 10 other countries have been successful and a new deal has been struck.

This new deal will be known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and will officially be signed by participating countries in Chile in March.

The Honourable François-Philippe Champagne, Minister of International Trade, said “Strengthening Canada’s economic relationship with countries in the large and economically fast-growing Asia-Pacific region to support prosperity and create jobs for our middle class is a priority for Canada.

“Canada has always said that we would only agree to a deal that is in Canada’s best interests. To that end, Canada has been working very hard on the new CPTPP, from spearheading the first meetings of officials in May 2017 to proposing several suspensions and changes to secure better terms for Canadians throughout this burgeoning region.

“Over the past year, we have also worked collaboratively with our partners to make the necessary changes so that the agreement builds real prosperity and creates opportunities. We said from the beginning that we didn’t want just any deal; we wanted a good deal for Canada and for Canadians. Canada went to great lengths to ensure to reach a progressive agreement that will benefit Canada and Canadians for decades to come. These involved a whole-ofgovernment approach and direct engagement at the highest levels. The agreement reached in Tokyo today is the right deal. Our government stood up for Canadian interests, and this agreement meets our objectives of creating and sustaining growth, prosperity and wellpaying middle-class jobs today and for generations to come.

“Canada successfully concluded an agreement with hard-fought gains for Canadians, thanks in large part to a dedicated and hard-working negotiating team and Canada’s special envoy Ian McKay.” The Canadian Meat Council (CMC) recognizes the hard work of Canada’s trade negotiators on the ground in Tokyo and see this deal as a great example of 18

January/February 2018

government and industry working together to grow the Canadian economy. CMC also congratulates both Minister Champagne of International Trade and, Minister MacAulay of Agriculture and Agri-food for their hard work and leadership on this file.

As a signatory, Canada is participating in what CMC President Chris White calls “a generational economic opportunity.” White was in Japan as part of an industry delegation in support of CPTPP when the news broke.

The Canadian meat sector has been a strong supporter of trade deals such as CPTPP. The Canadian Meat Council is confident that this deal has the potential to increase beef and pork sales by at least $500 million, creating the potential to support an additional 5,800 jobs here in Canada.

“I can say with confidence that our industry is ready to get to work.” Chris White added. “This gives Canada preferential access to other suppliers allowing our members to remain competitive in the Pacific market for sales of beef and pork.”

Canadian Cattlemen’s Association (CCA) President Dan Darling, a beef farmer from Castleton, Ontario, congratulates the Government of Canada for joining the new trade agreement, which provides beef producers with competitive access to Japan and dynamic markets in the Asia-Pacific region.

“This is an extremely positive development for Canada’s entire beef sector,” said Darling. “International Trade Minister François-Philippe Champagne Minister and Agriculture Minister Lawrence MacAulay have played pivotal roles in achieving this landmark agreement and I want to thank them for their diligence and leadership,” he said.

The CPTPP is a massive opportunity for Canada’s beef sector, particularly in the Japanese market. Japan imported US$3.8 billion of beef in 2016. Canada was the fourth largest beef supplier to Japan with $115 million, behind Australia ($1.8 billion), United States ($1.6 billion), and New Zealand ($163 million). Those trade figures were achieved with Canada, the U.S. and

New Zealand all paying a 38.5 per cent tariff on beef exports to Japan, while Australia enjoys an increasingly preferential tariff.

Once the CPTPP is implemented, Canadian beef will immediately be imported into Japan at the same preferential tariff as Australian beef. We will also be relieved from the current Japanese 50 per cent safeguard tariff on frozen beef that has been in place since July 2017. Importantly, we will enjoy a competitive advantage over American beef as the United States will not be part of the agreement and will remain at a much higher tariff.

The Canadian Pork Council (CPC) also welcomed the news that an agreement has been reached on the new CPTPP and said pork producers can be comforted in knowing that Canadian pork will have competitive access to key markets such as Japan, and developing markets such as Singapore, Vietnam and Malaysia following the signing of the trade deal in March.

INOTEC LINK CUTTER HONORED

“The CPTPP is of tremendous importance to Canadian pork producers who export over 70% of their products to over 100 countries” says CPC Chair Rick Bergmann.

“Because of improved access to key markets, Canadian pork producers can rest easy knowing that their and operations that of thousand Canadians in rural Tom, Kittle, president of the Handtmann US andlivelihood Canadian thatother represent INOTEC, This new market access in the Asia Pacific region is and urban communities who work in the pork industry announcedtothat the new generation INOTEC WT99-iT Link Cutter was recently honoured with of has vital importance the hard-working farm families is supported by this newest trade deal”. the highest equipment design award by Germany’s oldest independent design institution, the who operate Canada’s 60,000 beef farms and feedlots.

With the CPTPP Canadian beef exports to located Japan, are In 2016, Canadian pork exports to nine out of the ten International Forum Design GmbH, in Hannover. anticipated to see an increase of over $200 million. This countries that are members of the CPTPP totalled Selected from more than 5,000 applicants from 59 processors. In fact, the iT series is a model for modern increase will be enjoyed across Canada with processors 380,000 tonnes valued at more than $1.4 billion. With countries, the INOTEC WT99-iT link cutter was noted for food processing equipment design with simple controls, in Eastern Canada and thriving regional brands like this trade deal concluded, Canadian pork products will its outstanding hygienic design and dynamic precision rounded edges, many ergonomic features, free access to all Ontario Corn Feed Beef and Prince Edward Island continue to be made available to more than 461 million performance with proven technology that has been elements for maintenance and cleaning, and faster speeds Certified Beef also benefitting alongside their Western potential consumers under conditions favourable to upgraded from previous generations in every critical area made possible by even more precise cutting. counterparts and the Alberta Beef brand. the Canadian pork industry. The increased demand for affecting sanitation, performance, reliability and simplicity INOTEC iT pork seriesfrom link cutters work withwill all sausage types Canadian these partners contribute to of use. the CPTPP will be beneficial for the Canadian Moreover, with extremely high precision at speeds up to 1800 cuts reaching the $75 billion export goal set out in the 2017 economy. the Canadian economy is growing, The new When iT generation link cutters are complying with all per minute for very efficient pairing with high performance federal budget. and confident their financial situation, of Canadians the hygiene,are sanitation and in ergonomics requirements packaging machines. domestic demandallfor beef and are meeting of Canadian the demands forremains efficiencystrong. and For more information, visit http://www.Handtmann.us/Inotec or reliability in the heavy duty working environments of modern

http://www.Handtmann.ca/inotec

January/February 2018 meatbusiness.ca

September/October 2017 CANADIAN MEAT BUSINESS 25

19

Q&A WITH EMILY RITCHIE: SHAPING YOUTH IN THE INDUSTRY

By Cam Patterson

Typically the beef industry, or for that matter the agriculture industry in general, tends to suffer from poor youth retention, especially in the boardrooms and on the ranches and farms. Born out of the need to find a remedy, the Canadian Cattlemen’s Association (CCA) put the task of developing a platform to programs manager, Jill Harvie, to basically find the solution. The Cattlemen’s Young Leaders (CYL) was born.

Designed as a succession planning program, the CYL stands apart as the CCA’s flagship youth leadership and mentorship program. The graduation ceremony at the Canadian Beef Industry Conference is one of the highlights of the annual event, but more importantly, CYL alumni are recognized as representing the future of where Canada’s beef industry could be in the years to come.

That is a point of pride CCA’s Youth Leadership Coordinator, Emily Ritchie, finds most rewarding since she began working on the program just over a year ago.

Canadian Meat Business (CMB) spoke with Emily about the program and the support it has garnered in the industry.

CMB: Considering youth retention was a widespread concern within the beef industry, how would you sum up the impact the program?

ER: Very positive. This is the seventh year of the program and we’ve graduated just over a hundred people.

We’ve got two past CYL’s that are staffed within CCA, multiple graduates serving on boards and provincial organizations - such as Ryan Belerbach, President of the Saskatchewan Cattleman’s Association – as well as five grads standing as delegates on the Alberta Beef Producers, one of which is sitting on the board. So we can see the plan working when our graduates continue on to key positions and help build on the industry. It’s 20

January/February 2018

very gratifying to be a part of that.

CMB: How is the Cattlemen’s Young Leaders program structured?

ER: Well, essentially CYL is a Youth Leadership and Mentorship program for 18 to 35 year old candidates.

We choose 16 young producers or industry enthusiasts from across Canada who are not only passionate, but demonstrate a keen interest in a career within the industry. We get to know them, their interests and the direction they’d like to pursue and pair them up with a mentor that is an expert in their field of interest. They receive $2000 in travel bursaries so they can meet up with their mentors, attend keynote events and get the most out of the mentorship. The program really is a front row seat into how the industry operates while they network and make career contacts. Our goal is to ensure every one of our CYL’s receives a strong and focused mentorship experience.

CMB: When are applications available?

ER: We open applications on our (www. cattlemensyoungleaders.com) website January 1st until the end of March. We typically get between 60 to 70 applications and will choose 24 semi-finalists who will have the opportunity to participate in the selection process. From there we select the 16 finalists who will be our CYL’s for the year. The mentorship runs for

eight months, closing around July. The great part of the experience is that a lot of the CYL’s remain in contact with their mentors even after they graduate.

CMB: Are mentors and their CYL’s given a curriculum or schedule to follow?

ER: Actually it is a self-driven program, which we feel is beneficial to beef producers as they tend to have differing schedules, and so meets between CYL’s and their mentors are completely in their hands. It’s a great way to teach initiative and to have flexibility during their mentorship.

CMB: And that is no doubt very practical since most CYL’s would typically be working while in the program, correct?

Association and Farm Fair International. We work closely with our partners to develop the mentorship plan for each of our CYL’s, because they can make recommendations on people they feel would make strong mentors; again building on positive networking from the ground up.

CMB: Is interest for the CYL program growing?

ER: Yes, it is. And our social media following grows daily. We are really excited to see the direction that this program is headed.

CMB: Can you tell me about the graduation at the Canadian Beef Industry Conference?

ER: Yes, absolutely. We have a lot of young producers who have already started working on farms or in industry sectors, even students. We tend to see a very diverse group every year who make the program work with their day to day lives.

ER: It is a fantastic venue to host our graduation because it is such a well-regarded and comprehensive industry event. CYL’s not only benefit from program participation and recognition, but also from the speakers and the social events surrounding the conference. The CBIC provides the perfect opportunity for our alumni to network with future colleagues, building on a successful career path.

CMB: Are you getting some applications from Eastern Canada as well?

CMB: It is nice to wrap up a year of mentorship with a gala event.

ER: For the most part a large percentage do come from Alberta and western Canada. But we are excited when we have more engagement from all the provinces.

ER: Yes it is! And for me personally, to get to know the CYL’s from when they first applied, and see them develop into the industry savvy people they are when they walk across the stage for their award is always a thrill. I do enjoy the event.

CMB: After they’ve completed the program, is there a placement component?

ER: Not really. However, CYL is the program that keeps on giving. Graduation is in August of that year during the Canadian Beef Industry Conference (CBIC). They then join our CYL alumni group, which continues to provide them membership opportunities to key industry events, conferences and conventions. This year we’re taking some CYL’s to the 2018 World Brangus Congress in Houston, Texas and some to the CBIC as both events are taking place at the same time. We will have CYL’s attending both events.

CMB: So even though the mentorship ends, they are still a part of the program in a manner of speaking?

ER: Yes. Alumni can continue to take advantage of a lot of great opportunities that the CYL has to offer.

CMB: How is the buy-in from industry and businesses?

ER: We’re very fortunate with the foundation partners that we have supporting CYL. This is a great group of organizations that all see that developing young producers and industry professionals is crucial to the success of our industry. We have corporations like McDonald’s Canada, Cargill, UFA, MNP and Zoetis for example. We also have Gold sponsors in Farm Credit Canada (FCC), New Holland Agriculture as well as our official supporters like the Canadian Cattlemen’s

36 CANADIAN MEAT BUSINESS September/October 2017

January/February 2018

meatbusiness.ca

21

PUSH TO SLAP ‘SIN TAX’ ON MEAT IS MISGUIDED

By Sylvain Charlebois

The idea of having to pay a sin tax for environmentally detrimental foods seems to be gaining more support. For some, eating meat is considered a sin, and therefore meat products should be taxed, like alcohol and tobacco.

A new report published recently by a group called Farm Animal Investment Risk & Return Initiative (FAIRR) argues that a tax on meat is inevitable.

The meat industry, particularly cattle, has been facing relentless criticism over the last decade. Very rarely have we seen reports encouraging consumers to eat more meat. For one thing, science-based findings connecting climate change and meat have been accumulating. The well-known United Nations Food and Agriculture Organization has reported that livestock account for about 14.5 per cent of the world’s greenhouse gas emissions. Other surveys have even suggested up to 18 per cent. Greenhouse gas emissions produced by the cattle industry will only increase, as the middle class in both India and China are expanding and, as such, demand for animal protein is exploding.

And then there’s health. Two years ago, the World Health Organization linked meat consumption to cancer. The report demonstrated that eating processed meat products increases the risk of developing cancer. Several meat-producing countries including Canada, the U.S. and Brazil ridiculed the report, as processed meats were added to the same category as asbestos. But several other governments, including China’s and some European countries,’ have actively discouraged their populations from consuming an unreasonable amount of meat. Not a signal the meat industry needs.

22

January/February 2018

The other major headwind the industry faces is related to the ethical treatment of animals. A number of people believe livestock production to be unethical and that the industrial production of meat should be outlawed, period. The ethics narrative around meat has been gaining traction over the last decade or so.

Now, if you think the FAIRR initiative is some minor, under-resourced group desperately trying to seek attention, think again. It includes a portfolio of 57 investors with more than $2.3 trillion under management. This alliance clearly wants to influence the plant-based protein agenda and has had its fair share of success in doing so. Already, agri-food giants like Tyson Foods and Cargillare looking at “beyondmeat” solutions. Demand-focused companies are seeing the writing on the wall. Many consumers are reevaluating their relationship with animal proteins. But in cattle country, a large number remain in deep denial, blaming interest groups for fear-mongering.

Statistics show that demand for meat in Canada is still stubbornly robust. The average Canadian would typically consume about 87 kilos of meat products in one year, which is just slightly lower than the amount from five years ago. This year, beef consumption in our country reached 25.4 kilograms per capita and some expect demand for the product to increase to 25.5 kilograms next year. Surprising, perhaps, but beef prices have come down, making the product more attractive for the consumer on a budget.

Some significant variations among provinces should be noted, though. Alberta is by far the largest consumer of beef, as the average adult Albertan male will eat 83 grams a day. That’s 53 per cent more than the average in Newfoundland and Labrador, and 18 per cent more than in neighbouring British Columbia.

Affordability and lifestyle are probable reasons for such a difference.

But little can be accomplished by taxing meat.

Taxing food in general, any food product, is morally questionable. A retail tax on food is regressive and could penalize the underprivileged. Some have argued that meat is the new tobacco. This sensationalismintended parallel is unwise, since tobacco is not essential to life and food is.

NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS

The implementation of such a tax would also be challenging. If federal or provincial governments were Canadian consumers have stayed on the side of our to tax meat, funds would likely be used to support livestock industry but numbers are showing signs other relevant public programs. But as with any tax, of a change in consumer habits. Demand for pork transparency on how funds are dispersed within the massive, bureaucratic governmental machinery is DEMAND FOR PORK IS EXPECTED TO weak. Also, many great small businesses around the FALL TO UNPRECEDENTED LEVELS country have offered high-quality meat products to Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s such facility IN 2018, DROPPING 13 PER CENT local markets.

Many of largest them are family businesses.

FROM 2015Peace LEVEL. DEMAND FOR Taxing sausages and steaks would compromise the

By ITS Amy Reid, Arch News viability of many stores valued by communities around CHICKEN, ONE OF THE CHEAPEST so as to not emit odours. And while there is an operational A federally licensed beef processing facility is in the works the country.

TYPES OF ANIMAL PROTEIN OUT in Surrey, BC.

THERE, PLATEAUED IN 2016 AND HAS “There’s a new building coming forward, a new abattoir, I think that’s the French pronunciation of slaughterhouse,” SINCE SOFTENED.

6,000-square-foot abattoir on the property now, it’s can only process a limited number of cattle.

Meat has played a significant part in consumers’ Chris in Les is general manager Meadow Valley Meats, lives the Western worldoffor centuries.

Penalizing the company behind the project.

Meadow Meatsisis said Councillor Mike Starchuk. “So Surrey will have a consumers for continuing a culinaryValley tradition seeking a Canadian Food Inspection Agency license for newer facility with a better capacity so people will have inexplicable. Taxing a food product which has been the proposed abattoir, to become a federally registered the ability to not have to ship an animal to Alberta to have entrenched in our and culture forthe sooperation. long is idealistically meat establishment expand This would it processed. applications have gone through the is expected to fall The to unprecedented levels in 2018, silly.

We should let the market evolve and allow allow the meat products to be transported beyond B.C.’s Agricultural and Food Sustainability Advisory Committee.” dropping 13 per cent from its 2015 level. Demand for boundaries. to make their own choices. That said, consumers The facility is proposed on atypes 25-acre the chicken, one of the cheapest ofproperty animalwithin protein the livestock industry to look at market data “Our focus is on trying to ought bring a more efficient, sustainable Agricultural Landin Reserve 5175 184th St. softened.

The planned out there, plateaued 2016 at and has since listening to consumers incan order to better localstart product to the market, realizing we do that now 30,000-square abattoir in Cloverdale would process up and Although beef couldfoot experience a rebound in 2018, in a very limited sense,” said Les. “I caution people when to 100 head of cattle per day. appreciate their concerns.

Given that they are one of expected increases aren’t spectacular, given how low talking to them and groups they say, in ‘What aeconomy, big plant, that’s going the most trusted our livestock According to a city report, that would make it larger than retail prices are these days. Canadians are not giving to go allow you to go mainstream.’ Well, yes, if you look any other processing facility in B.C.. But it would still be producers are ideally positioned to renew their social up on meats but they are willing to spend more time in the context of B.C., but this is still a very niche plant small by industry standards, compared to the largest meat contract with the public. and we’ll serve a niche industry for producers and for the away from the meat counter.

Animal protein still has processing plants in Alberta that process 3,000 heads of market.

It’s certainly not going to be a monstrosity of a plant market cattle currency but plant-based alternatives to meat per day.

Sylvain Charlebois is professor in food distribution and policy and but it’ll be a big upgrade from the site currently.” are increasingly impressive.

The proposed facility would be fully enclosed and designed dean of the faculty of management, Dalhousie University.

Continued on page 32

meatbusiness.ca

January/February2017 2018 September/October CANADIAN MEAT BUSINESS 31

23

TOP ECONOMIC TRENDS OF 2018: GLOBAL ECONOMIC LANDSCAPE

By Martha Roberts

The Ag Economics team at Farm Credit Canada looks at five trends likely to affect the Canadian agri-food industry this year.

Given the number of impacts from far-off sources likely to be felt here at home in 2018, we’ve made The World our number one trend to watch.

continues to grow at a pace that requires them to import which, in 2018, could total 2.5 million tons—with much coming from non-U.S. sources.

The global economic environment will support agriculture and agri-food in 2018, although there’ll be some rough spots along the way.

Income/wage growth in the U.S. - Canada’s largest export market for agriculture and food - is expected to continue to boost consumer spending there.

Global GDP is forecast to grow 3.7% with the U.S. and other advanced economies leading that growth.

That stability will help to withstand some of the uncertainty global markets will face this year. From the renegotiation of NAFTA to the massive market influence of China, the world plays a huge role in Canadian agriculture and food processing profits.

Trade The relatively low loonie should make Canadian exports competitive in 2018. But the big trade story in 2018 will come from geopolitical affairs and the agreements they produce.

Currencies The Canadian dollar is expected to be higher in 2018 than it was in 2017, though still low enough to support profit margins. It should average US$0.78, assuming West Texas Intermediate (WTI) crude oil prices trade in the US$55 per barrel range and interest rates in Canada and the U.S. follow similar patterns. A low CAD benefits the livestock and crops sectors.

While many developed economies’ central banks have been unable to lift inflation to-date, currencies among Canada’s major trade partners (the U.S., Japan, and Europe) are expected to strengthen in 2018.

Markets Growth in developing nations is expected to also lift spending on imports of commodities and food. Oilimporting countries have boosted economic output as oil prices declined, but with the worst of that likely in the past, oil-exporting countries are now also expected to grow. That growth, along with additional income means consumers in emerging markets buy more food.

Specific markets will play heavily on Canadian competitiveness.

China is expected to show 6.5% growth in GDP, and India will reach 7.4% GDP growth in 2018. Each will impact Canadian production in the year to come.

India’s late-2017 introduction of a 50% import duty on Canadian pea exports could shift Canadian acres, with potential price impacts cascading down to other crops. Chinese consumption of animal-based proteins 24

January/February 2018

A renegotiated North American Free Trade Agreement (NAFTA) will have long reaching implications, well beyond trade taxes and market access rules applied to Canadian exports and imports. It could also alter existing dispute settlement procedures and has the potential to shift the value of the Canadian dollar.

Changes in any of these could impact prices of ag commodities in Canada.

Elsewhere, the Comprehensive Economic and Trade Agreement (CETA) will give Canadian producers greater access to Europe’s massive market while a revived Comprehensive and Progressive Agreement for Trans-Pacific Partnership (formerly the TPP11) has the potential to give access to Japan, a mature market, and several other emerging markets.

What’s the bottom line?

The world is a big place, but it might take on even greater significance to Canadian agriculture and food processors in 2018. Global market forces will shape prices producers receive, and ultimately, farm cash receipts. Those forces have the potential to create a bumpy ride this year, but the health of the Canadian sector should be strong enough to hold tight.

Martha Roberts is a Research Specialist with a focus on economic performance and success factors for agricultural producers and agri-businesses. Martha has 20 years’ experience conducting and communicating quantitative and qualitative research results to a number of different audiences. She holds a Master of Sociology degree from Queen’s University in Kingston, Ontario.

ONLINE MARKETING STRATEGIES FOR THE MEAT DEPARTMENT

By Ronnie P. Cons

Getting your Online Strategy in Line for Maximum Sales Growth As online shopping sales continue to grow season over season, year over year, it behooves the manager of the meat department to develop a marketing strategy and plan to drive sales of product. Avoiding doing so and just sticking to conventional tactics can lead to a loss of customers and sales as there are a growing number of online and brick and mortar meat stores that will employ exciting and targeted online strategies to attract clients.

Here is some advice on how to begin to develop an online marketing strategy.

Start with the Basics The meat department manager must develop a value-added proposition and positioning and messaging strategy that will consistently be used in all his communications with existing and prospective clients. This means deciding where their store needs to be positioned in the customer’s mind along certain key proposition elements including: • Low price average quality product vs high priced premium quality product; • Demographic targeting – for example, targeting young professionals or middle aged couples; • Promoting extensive personal service vs self-serve; • Delivery vs pick up; • Promoting health conscious meat cuts vs traditional possibly tastier cuts; • Deciding other key elements in the product and service mix.

The food business is unique Your financing should be too fccfinancing.ca

January/February 2018

25

Once the above-mentioned target markets, value proposition, positioning strategy and core messages have been developed, the next step is to find the most cost effective online mediums to communicate these messages to existing and targeted prospective clients. For instance, if one decided to target young professionals this would entail focusing on different online channels than if one was targeting middle aged couples who surf different web sites and use social marketing in a different manner.

Develop the Specific Elements of an Online Strategy 1) An attractive professional web site is a must.

This could be the store’s section (page) found on the chain’s main site where the individual store promotes local specials and promotions. An independent store would have its own site. The site should be used to communicate the main theme and value proposition as mentioned above.

It should have an option allowing persons to join the store’s regular email newsletter which helps to retain existing customers and educate and covert new clients. Online shopping or order processing are things to consider. Barbecue contests and recipe blogs inviting customers to submit recipes will energize the site and engage customers.

The site should be developed and built by a professional and only top-quality meat photos should be used.

2) Email marketing is an efficient, cost effective tool used by many digital marketers. One study revealed that 89% of marketers consider it as the primary means of lead generation. Developing an email list of current clients and persons registered to the newsletter will allow the store to email specials and store events. Opt-in marketing lists of locals living in the area can be used for mass mailings to promote events or limited time specials to drive new client growth. The email link should go to particular landing page set up for 26

January/February 2018

that promotion in order to enhance conversion rates. A quick call to action is essential (print rebate voucher, sign up for newsletter, store open house, etc.).

3) A Google AdWords campaign focused on the geographic zone around the store can be used to drive new client growth by targeting persons Googling “meat stores” in your area. A Google AdWords ad campaign could offer a discount to these persons who are already looking for a meat store in his area. Testing different key words and ads and measuring the effectiveness of the campaign with Google analytics is easy to do for the non-expert marketer even though a professional may be worth hiring to tutor you at first or run the campaign.

4) Facebook ads and Instagram can be used for social marketing and promoting events in order to create hype and having readers share them with their friends. These platforms are also useful for educating readers on meat and poultry by sending out articles which will interest them.

5) Search Engine Optimization (SEO) is important to get your site ranked higher and thus get more attract visitors. One method is to ask satisfied customers to provide a positive Google review.

This has been shown to not only increase the SEO ranking but also heavily influence the prospective client’s perception of the quality of the vendor’s goods and services.

So, get your online marketing strategy in line for maximum sales growth!

Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of meat and poultry. He can be reached at Rcons@ ccpacking.com or visit www.ccpacking.com

FAO AFFIRMS CATTLE’S CRITICAL ROLE AS UPCYCLER

By Sara Place, Ph.D., National Cattlemen’s Beef Association

In the livestock feed versus human food debate, we haven’t been using the right numbers. Rather than being a drain on global resources and competing with human food supplies by eating lots of grain, livestock are often net contributors to the global protein supply. That’s the conclusion of a new study from scientists at the United Nations Food and Agriculture Organization (FAO).

The FAO researchers developed a global database of what livestock eat and found 86 percent of the feed is human inedible. Mostly, livestock eat grasses grown on marginal lands and other forage crops, like alfalfa. Marginal lands are those that are too rocky, steep and/or arid to support cultivated agriculture, such as fruit or vegetable production. Globally, livestock also eat over 1.9 billion metric tons of leftovers from human food, fiber and biofuel production.

BEEF SUPPLIES UP, STRONG DEMAND FORECASTED

For example, livestock eat the residues of grain harvest (the stalks and leaves left in the field after corn harvest), the byproducts from milling grains for flour production (wheat midds), cottonseed that is a leftover of cotton production, and glycerol and distillers grains that are byproducts of soy biodiesel and corn ethanol production, respectively.

If livestock

By Brian Perillat, Manager and Senior Analyst,didn’t Canfaxconsume these plant-derived leftovers and byproducts, their disposal would likely result in an environmental burden. being cattle a part of market the global food livestock enhance sustainability of TheBy2017 cansystem, be summarized asthe having larger other food production and industries. cattle numbers, more beef production and higher prices.

Throw in good through supply and it Considering that profitability most of what cattle eat is notthe human edible, chain, the FAO researchers found that 1akggood of protein in meat and milk only requires 0.6 kg of protein from is certainly news story. human food. Additionally, the protein in meat and milk is of higher nutritional

Thequality overallcompared market tone beeninpositive, the Canadian cattle market to thehas protein grain thatand cattle eat. has performed very well relative to the United States market. Alberta cullThe FAO research represents global averages, but beef production in the U.S. cow prices have been stronger than the U.S. virtually all year, and despite competes even less with human edible food. In a recent report published by the the fact that western Canadian feed costs have risen dramatically relative to National Academies of Sciences, Engineering and Medicine, it was estimated the U.S., there have been very few feeder exports, and even imports of U.S. that on average greater than 90 percent of what grain-finished beef cattle eat in feeder shift in feederforages trade points to a very competitive Canadian theircattle. lifetimeThis is human inedible and plant-derived leftovers. Less than 10 feeder market as prices have also been premium to the U.S. percent of their lifetime feed consumption is grain that could potentially be eaten people.

U.S.bymarkets TheFurther, U.S. cattle herd had a major expansion over the past Science three years, in a report published by the Council for Agricultural and and this Technology, will lead to U.S. continued larger beef production at least next two to grain-finished systemsin were foundthe to contribute 19 three percent years.

Beef production hit itsthan lowthey in 2015, and by 2018, it is expected to more human edible protein consumed. increase 16.5 periscent - aDirector, four-billion-pound increase.

Sara Place, Ph.D., a Senior Sustainable Beef Production Research, with the National Cattlemen’s Beef Association.

In the U.S., the larger production has been met with increased exports, and FAO study at: http://www.sciencedirect.com/science/article/pii/ not View onlythehave the volume of exports increased, the price has also increased, S2211912416300013?via%3Dihub which has been very supportive to the North American cattle and beef markets.

meatbusiness.ca

September/October2018 2017 CANADIAN MEAT BUSINESS 27 January/February 27

DEMAND FOR PORK IS EXPECTED TO FALL TO UNPRECEDENTED LEVELS IN 2018, DROPPING 13 PER CENT FROM ITS 2015 LEVEL. DEMAND FOR CHICKEN, ONE OF THE CHEAPEST TYPES OF ANIMAL PROTEIN OUT THERE, PLATEAUED IN 2016 AND HAS SINCE SOFTENED. Canadian herd The Canadian cow herd remained relatively flat around 3.8 million beef cows for the last four years. Although the herd has not grown, however beef production in 2018 could increase for the third consecutive year as more cattle are fed and processed in Canada.

The Canadian cow herd is not expected to show much growth, as current cow markets are near steady with a year ago, and heifer retention has shown only a marginal increase.

If good growing conditions materialize and feed supplies increase next year, this could encourage some herd growth.

28

January/February 2018

Looking ahead The stage is set for 2018. The growing cattle herd and significantly more cattle put on feed in the fall will lead to increased beef supplies, especially in the second half of the year. The current futures markets are pointing to higher prices next summer despite these larger supplies. Strong demand could support the higher prices, but there is certainly some risk in the marketplace heading later into 2018 as feedlot breakevens are well above the prices seen in the summer of 2017.

In addition to watching how the cattle supply and demand factors unfold, other key factors to watch will be the Canadian dollar. A dollar over 80 cents would add further price risk to the Canadian market, while a lower dollar would be supportive. Feed costs are always a key driver on calf and feeder prices, and basis levels between Canada and the U.S. can have a big impact on Canadian prices and profitability.

Bottom line The high number of cattle put on feed in the fall will lead to increased beef supplies, but futures markets point to higher prices in the summer of 2018.

2018

ANNUAL

February 25-27, 2018 Gaylord Opryland Resort & Convention Center Nashville, TN The Annual Meat Conference opens the door for meat professionals to access fresh ideas and perspectives. Come and satisfy your appetite for learning and professional growth.

Gain tools, insights, inspiration and new ideas to dierentiate your unique products and services, fortify your marketing ROI, increase sales and build customer loyalty. Network with your colleagues in Nashville and explore the latest developments in meat retailing today!

REGISTER TODAY! www.meatconference.com

January/February 2018

29

FOOD & BEVERAGE CANADA IS LAUNCHED Over 1,500 food and beverage processing businesses across the country have united to launch a new national organization mandated to work with governments and other stakeholders on industry priorities.

This new organization, representing food and beverage manufacturers in Canada, has been launched under the banner of “United to nourish the world”. Food & Beverage Canada (F&BC) will work to be the national voice for this vital sector of Canada’s economy.

“Food & Beverage Canada is bringing businesses together from coast to coast to seize an unprecedented opportunity,” said Daniel Vielfaure, F&BC Co-Chair and Managing Director, Bonduelle Americas Long Life.

“This is Canada’s agri-food century. Canada’s food and beverage manufacturers can play a pivotal role in feeding the world, while growing jobs and economic sustainability for communities in rural and urban Canada.”

F&BC will work with governments to effectively shape public policy and industry actions for the benefit of Canadians. Leading issues include: • Ensuring smart regulations that serve the public interest while maintaining a competitive environment • Building a healthier, more sustainable and ethical food system • Promoting innovation in food and beverage manufacturing processes and practices • Creating global trade opportunities for products • Protecting and informing consumers while enabling consumer choice • Providing skilled jobs and rewarding employment for Canadians Food & Beverage Canada is an association of seven regional food and beverage manufacturing associations from coast to coast plus leading industry and stakeholder members. The organization is committed to collaborative relationships and constructive communications with federal and provincial governments.

“There are a lot of important issues on the table right now,” said Michael Burrows, F&BC Co-Chair and CEO Maple Lodge Farms. “We believe that, working together, we can contribute positively to Canadians’ quality of life and deliver value for our members. We can strengthen 30

January/February 2018

the competiveness and productivity of the businesses we represent while being a key engine to power sustainable growth in Canada’s economy.”

The founding Board of Directors is comprised of the following Executive members: Co-Chairs – Michael Burrows, CEO, Maple Lodge Farms & Daniel Vielfaure, Managing Director, Bonduelle Americas Long Life Vice chair - Sylvie Cloutier, CEO, Conseil de la transformation alimentaire du Québec (CTAQ) Secretary: Rosemary MacLellan, VP Strategy & Industry Affairs, Gay Lea Foods Treasurer: Joe Makowecki, President & CEO, Heritage Frozen Foods Director at Large: Rory McAlpine, Sr. VP, Government and Industry Relations, Maple Leaf Foods About the Canadian Food and Beverage Manufacturing Industry The food and beverage processing industry is the second largest manufacturing industry in Canada in terms of value of production with shipments worth $112.4 billion in 2016 accounting for 18% of total manufacturing shipments and 2% of the national GDP. The food and beverage manufacturing industry invests about $2 billion annually in capital expenditures, about 80% of which is in machinery and equipment.

The industry’s 6,900 businesses are the largest manufacturing employer providing direct jobs for over 257,000 Canadians, employing more Canadians than the auto and aerospace industries combined. The industry supplies approximately 70% of all processed food and beverage products in Canada and is the largest buyer of the food Canadian farmers grow.

Exports of processed food and beverage products to 192 countries continue to increase and stood at $33.5 billion in 2016, an increase of 7% over 2015; accounting for 29.8% of production value. 87% of these exports went to three major markets in 2016 – United States (74%), China (7%) and Japan (6%).

NEW HOUSING STANDARDS BETTER PROTECT AGRICULTURAL TEMPORARY FOREIGN WORKERS When temporary foreign workers in Canada’s agriculture industry have safe and adequate housing, the agriculture industry can thrive.

The Government of Canada takes seriously its responsibility to ensure the rights and freedoms of temporary foreign workers are protected, including their right to safe and adequate housing. As a result, in April 2017, Ottawa set out a path forward plan for the Temporary Foreign Worker Program that included commitments to protect the rights of foreign workers in Canada, and subsequently this week announced new measures now put in place to strengthen housing requirements for temporary foreign workers under the Primary Agriculture Stream, including the Seasonal Agricultural Worker Program.

“Our government takes seriously its responsibility to protect the health and safety of temporary foreign workers,” stated Patty Hajdu, Minister of Employment, Workforce Development and Labour. “These new housing measures will help to ensure that temporary foreign workers in the agriculture industry have safe and adequate housing while working in Canada.”

months old and must indicate the maximum number of people that the housing can accommodate. Employers must also now provide proof that all issues listed in the housing inspection report have been fully addressed before they will be allowed to hire foreign workers.

The Government of Canada has already taken a number of steps to improve the conditions for foreign agricultural workers including conducting more onsite inspections to verify first-hand that the working and housing conditions of temporary foreign workers meet program requirements. The Government has also launched the Primary Agriculture Review which includes a National Housing Study with the goal of establishing a cohesive Temporary Foreign Worker Program housing standard across Canada.

Employment and Social Development Canada recently provided more than $93,000 to the Migrant Workers’ Dignity Association to help migrant workers become better informed about their rights as workers in Canada.

As of January 1, 2018, housing inspection reports submitted to the department must be less than eight January/February 2018

31

HOLLYMATIC’S SUPER PATTY MACHINE IS INDUSTRY FAVORITE The Hollymatic Super Patty Machine features a stateof-the-art compact design, industry-proven reliability and low operational cost. With reliable portion control, the Super can produce up to (2,100) patties per hour in various shapes and sizes from ¾ oz. up to 8 oz. An industry favorite for producing high quality patties, the Super forms and portions a wide variety of products including meat, poultry, seafood, vegetables, bakery items and more. Hollymatic’s Super is found in more restaurants, supermarkets, drive-ins, small locker plants and institutions than any other patty machine.

Some of its features and benefits include automatic edge guide paper interleaving, safety interlocking, simple and fast mold plate changes, and fast & easy clean-up with one tool disassembly. A rugged stainless steel stand with casters, created specifically for the Super, offers lightweight transportation for convenience and flexibility when moving to different locations to form patties.

For more information, contact Hollymatic at (708)579-3700 or visit www.hollymatic.com

RABOBANK GLOBAL ANIMAL PROTEIN OUTLOOK 2018: PRODUCTION GROWTH CONTINUES, BRINGING INCREASED COMPETITION

Animal protein production is expanding around the world, and increasing competition —between the species for share of consumer wallet and between exporters for access to import destinations— is creating many areas of opportunity for both producers and processors, according to RaboResearch’s Animal Protein Outlook for 2018.

“Rabobank expects animal protein production to increase in all regions, with total production growth once again surpassing the ten-year average,” says Justin Sherrard, Global Strategist – Animal Protein at Rabobank. “This strong production increase is mainly being driven by Brazil, China, and the US.” Looking at production across species, beef joins pork as a strong contributor to global expansion. In 2018, global beef production is expected to expand for a third consecutive year, and global pork production is expected to see another year of significant expansion. Poultry production is also expected to grow, but will be down slightly on 2017.

32

January/February 2018

“The Rabobank trade scorecard for 2018 shows that many countries are looking to increase exports, and this will be a major part of the increased competition we expect in 2018”, according to Sherrard.

While specific trade outcomes will also reflect growing demand, access issues and policy decisions, Rabobank expects trade to represent an important area of both opportunity and uncertainty over the coming year.

Uncertainty in 2018 will come from the heavy overlay of politics in trade policy—such as the NAFTA negotiation, Brexit and the US – China trade relationship—which is not new but does seem to have become more common, and from biosecurity issues such as Avian Influenza and

African Swine Fever which again appear susceptible to political involvement.

“Trade should be the top-of-mind issue for global animal protein as we head into a new year, and enhancing competitiveness is going to be critical for success,” says Sherrard.

Consolidation, evolving retail landscape, alternative proteins, innovation Looking beyond markets and trade, Rabobank sees four other issues that will dominate the headlines for animal protein in 2018: increasing although uneven industry consolidation, the evolving retail landscape, alternative proteins, and technology.

In food retail, the evolving landscape is one of more channels, more product options, and more velocity for instance due to blurring retail channels. This will bring new areas of opportunity, such as online fresh food sales in China, and generally bring opportunities to strong and agile animal protein supply chains. Alternative proteins will grow further from their small base and continue to capture consumer interest in innovative food.

At the same time, the animal protein production chain, and especially aquaculture, will focus on alternative proteins as an innovative feed ingredient. When it comes to innovation, technology—and in particular data-driven technology—is starting to deliver value along the animal supply chain for instance by increased supply chain (cost) management. Two important drivers behind the increase of technology are reducing the environmental footprint and addressing social concerns.

Regional outlooks • North America: Production continues to

grow. Ongoing production expansion across the species increases the dependence on trade, yet access to trade markets will be an area of uncertainty during 2018 • Brazil: Production will increase in 2018. Brazil & Argentina are set to increase beef production by 5% and 4%, respectively, with Brazil also expanding poultry and pork production.

• EU: Exports are key in a challenging market. Access to export markets is increasingly important for processors, as production rises, while social issues remain top of mind for domestic consumers.

• China: Pork supply will increase, poultry will stay flat. China’s pork market is entering a down cycle, with imports set to rise as structural adjustment continues. Overall poultry supply will be flat, with white bird supply declining and other species rising.

Beef supply will grow steadily, with imports being the main driving force.

• South-East Asia: Production growth will decelerate. Poultry production is tapering off in response to oversupply. Beef demand will continue to be met by imports, with price being the main focus in trade decision making.

• Australia & New Zealand: Beef and lamb production will remain steady. Improved seasonal conditions support Australian producer demand for cattle amid softer export markets, while in New Zealand, beef exporters are reliant on continued demand growth in export markets.

For more information, visit https://www.rabobank.com/en/ press/search/2017/20171129-rabobank-global-animal-proteinoutlook-2018.html

January/February 2018

33

CANADIAN FARMERS BURNT OUT BY GOVERNMENT RED TAPE

By Marilyn Braun-Pollon

Across the country business owners spend hundreds of hours every year filling out onerous and complicated government forms, on hold with government agencies, getting the runaround from bureaucrats unable to answer their questions, and dealing with unhelpful inspectors and auditors.

If this sounds familiar to you, know that you’re not alone. It’s red tape – the $10 billion hidden tax on Canadian businesses.

Every time the Canadian Federation of Independent Business (CFIB) surveys its members, red tape is one of their top concerns. That’s why we launched Red Tape Awareness Week (RTAW) nine years ago to show how unnecessary regulations disproportionately hurt Canada’s small, independent businesses and what governments can do to ease that burden.

CFIB’s 9th annual RTAW ran from January 22-26, 2018 and put a spotlight on the cost and impact of excessive regulation on the Canadian economy, and specifically the negative impact on Canada’s farmers – with the agriculture sector being the hardest hit.

Sixty four per cent of farmers say that their business has been negatively impacted by delays caused by regulations, compared to 56 per cent of small business owners generally. Another 83 per cent say excessive regulations add significant stress to their lives.

It’s evident that over-regulation, confusing paperwork, and bad customer service is hurting the agriculture sector and stifling innovation. This should be a concern for all Canadians, as the agriculture and agri-food industry contributes $100 billion annually to Canada’s gross domestic product (GDP) and employs 2.1 million Canadians.

Simply put: farmers are feeling burnt out by government red tape.

Unfortunately, it’s not surprising, given that many are already grappling with changing labour laws in some provinces and costly carbon taxes introduced or being introduced in most of the country. Add to these worries a lack of access to labour, and uncertainty around NAFTA and it’s enough to keep anyone up at night.

In fact, CFIB’s 2017 Regulation and Paper Burden Survey found 73 per cent of agri-business owners say red tape significantly reduces productivity in their businesses, and 70 per cent of farmers say red tape 34

January/February 2018

discourages them from growing their businesses, compared to 61 per cent of other business owners.

Farmers have no issue with the legitimate rules, but red tape is something else. Let’s be clear, we are not talking about deregulation. We all agree that a certain amount of regulation is important to protect human health and the environment.

But for farmers, red tape takes many forms; it can be contradictory information from the Canadian Food Inspection Agency (CFIA), a dumb rule from Fisheries and Oceans or a mandatory Statistics Canada survey that they are forced to complete at their busiest time of year. It all adds up to a lot of wasted time and money.

What’s worse, 93 per cent of farmers believe their regulatory burden is growing, and nearly 40 per cent would not advise their children to start a business because of government red tape. With succession continuing to be a major issue for the Ag sector, we’re concerned that red tape will stop the next generation of farmers from wanting to get into the business.

While we know governments are great at celebrating agriculture, which is important, what farmers really want is for governments to set them free from excessive red tape. Some recent progress provides some hope, including the CFIA’s “Ask CFIA” online service to streamline business owners’ access to answers for their regulatory questions. And while some governments are doing a better job than others in reducing unnecessary red tape, there is still a lot of work to be done so farmers can continue to provide safe, high quality food for Canadians.

Marilyn Braun-Pollon is Vice-President Prairie & Agri-business with the Canadian Federation of Independent Business (CFIB). She can be reached at mssask@cfib.ca Established in 1971, CFIB is Canada’s largest association of smalland medium-sized businesses, CFIB is Powered by Entrepreneurs™.

CFIB takes direction from more than 109,000 members (including 7,200 agri-business owners) in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

e g d e e h t n e t h ig a r St o f y o u r k n iv e s k ly ! e a s il y a n d q u ic

New! Air-operated models available, too.

More power.

Y S A E ' P R More profi ts.

A SH

Sa fety!

COD E 19 06 2 ee l - O ptimal Food St s es nl ai St 0% od el 10 N ew Mand The world’s most productive

profitable trimmer system: Now available in more models than ever!

Rapid and efficient For no-hassle meat recovery, defatting and muscle even for a novice cutting, experience the ultimate in productivity andsame use as a steel bottom-line performance when you use the expanded No.1 feature pre00%™ Trimmers. lineup of 1 Quantum tensioned bars

TAINLESS STEEL • Improved product appearance •S Increased meat yields

Free of maintenance (no springs mounted)

• Minimized need for rework • Improved worker productivity Join other leading North American plants … and gain all these benefits, too!

Visit bettcher.com/quantum for video demos and detailed specs!

Included with a stand for fixing at 90°C or 45°C

Contact the YES Group at 800-465-3536 or sales@yesgroup.ca to schedule an in-plant demonstration and custom financial impact analysis.

YES Group | Markham, Ontario

Hand protection

800-465-3536 | 905-470-1135 | yesgroup.ca Inverted hand-guard Better ®weight distribution From the makers of the Whizard Trimmer …

Available at the

Yes Group Inc.

Quantum, Whizard and the Bettcher design are trademarks of Bettcher Industries, Inc. U.S. and international patents. ©2014 Bettcher Industries, Inc.

meatbusiness.ca

201 Don Park Road, Unit 1 Markham, Ontario L3R 1C2 Phone: 1-800-465-3536 or 905-470-1135 Fax: 905-470-8417 Email: sales@yesgroup.ca www.yesgroup.ca January/February 2018 July/August 2017 CANADIAN MEAT BUSINESS3535

36 January/February2017 2018 36 CANADIAN MEAT BUSINESS September/October

meatbusiness.ca