Our May/June Issue

May/June 2018

CAN TRUMP’S CHAOS HELP THE CANADIAN MEAT INDUSTRY?

MAPLE LEAF INTRODUCES SWEEPING CHANGES TO ICONIC BRAND CPTPP: AN EXCITING OPPORTUNITY FOR CANADIAN MEAT INDUSTRY CANADA STRENGTHENS TRADE RELATIONSHIP WITH CHINA ARE CATTLE DRINKING CANADA DRY?

201 Don Park Road Unit 1, Markham, Ontario, L3R 1C2 Phone: 905-470-1135 1-800-465-3536 Fax: 905-470-8417 Website: www.yesgroup.ca email: sales@yesgroup.ca

Remco and The Yes Group Protecting your Customers

Remco products are colour-coded to help divide the production cycle into different zones.

By identifying these zones as different cleaning areas, the movement of bacteria around the production area can be blocked.

Our products were developed with the Hazard Analysis Critical Control Point (HACCP) in mind.

No matter what colour-coding plan is implemented, Remco Products from The Yes Group provides significant added value at no additional cost. From scoops to squeegees, from brushes to shovels, we have the products and the colours to enhance any professional quality assurance program.

2

May/June 2018

May/June 2018

5 7 12 13 14 16 17 22

Reality Check: How Much Meat do Canadians Eat? Can Trump’s Chaos Help the Canadian Meat Industry?

By Scott Taylor

Maple Leaf introduces sweeping changes to iconic brand CPTPP: An exciting opportunity for Canadian meat industry

By Craig Klemmer

Bayer Partners with The Do More Agriculture Foundation Canada strengthens trade relationship with China

Are Cattle Drinking Canada Dry? U.S. Beef Industry Leaders Release FirstEver National Framework for Beef Sustainability

23 24 25 26 27 28 29

CCA discusses trade with USTR Primary Agriculture Review of Temporary Foreign Worker Program Ontario chicken to get a boost from new accelerator program

By Owen Roberts, Farm Credit Canada

Canadian red meat continues to be a global favourite

By Richard Kamchen

Quebec deli meat companies awarded financial assistance for expansion Using sensors and blockchain for better animal welfare in transit

By Lilian Schaer

Working through the haze

By Marilyn Braun-Pollon

May/June 2018

3

N O T H I N G S AY S

F R E S H like FABB R I PAC KAG ING Fabbri Automatic Stretch Wrappers produce highly attractive packages that make your products look fresh and “just packed”. Fabbri Stretch Wrappers use stretch film to package fresh sausage in preformed trays to provide an in-store wrapped appearance. They employ four-way stretch technology to produce tight, over-the-flange, wrinkle-free packages with securely sealed bottoms and a superb case presentation.

And here’s something you might find even more attractive: Fabbri Stretch Wrappers can help increase your profitability.

Fabbri packaging is produced using low-cost packaging materials. And when you factor in its Best in Class low cost of ownership, the Fabbri Stretch Wrapper is your most economical and affordable packaging solution.

Compact and robust servo-driven Fabbri packaging machines are built for speed, versatility and the highest levels of productivity. Fabbri Stretch Wrappers can handle a wide range of tray sizes with no changeovers, producing up to 62 packs per minute. All models feature a user-friendly full-size control panel for easy operation and maintenance. Test the Fabbri at our Reiser Customer Center and see for yourself how it can improve your packaging. Contact Reiser today.

Reiser Canada 1549 Yorkton Court #4, Burlington, ON L7P 5B7 • (905) 631-6611 Reiser 725 Dedham Street, Canton, MA 02021 • (781) 821-1290 www.reiser.com/fabbrisausage

4

2013

May/June 2018

Leading the food industry in processing and packaging solutions.

May/June 2018 Volume 17 Number 3 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Scott Taylor, Craig Klemmer, Owen Roberts, Richard Kamchen, Lilian Schaer, Marilyn BraunPollon CREATIVE DIRECTOR Christian Kent Canadian Meat Business is published six times a year by We Communications West Inc.

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

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

Printed in Canada. ISSN 1715-6726

REALITY CHECK: HOW MUCH MEAT DO CANADIANS EAT? A new analysis of Statistics Canada data shows Canadians are consuming moderate amounts of meat. On average, Canadians consume 41 grams of cooked fresh meat, such as beef, pork, lamb and veal, a day – that’s about half the size of the palm of your hand. They also consume prepared poultry and prepared red meat in modest amounts – 28 grams a day, which is roughly two slices of deli turkey or ham.

“Canadians are consuming red and prepared meat well within Canada’s Food Guide recommendations, and are knowledgeable about the essential nutrients that meat provides,” says Chris White, President of the Canadian Meat Council. “Many might be surprised to know that meat consumption in Canada is similar to that found in Mediterranean countries, places where diets are widely recognized as being amongst the healthiest worldwide,” he added.

Additional Statistics Canada data collected through 24-hour dietary recalls shows that Canadians are consuming less than one Food Guide serving of red meat and prepared meat/poultry a day. An Ipsos poll conducted in September 2017 of 1,000-plus Canadians complements these findings. According to the poll 72% of respondents reported to eat three or less servings of meat a week. Encouragingly, 3 out of 4 respondents understand the important role that red meat plays in getting essential nutrients for health.

“Canadians understand that meat is nutrient dense and plays a key role in balanced diets and even has benefits when added to diets that are largely plant-based by helping the body absorb nutrients, like iron and zinc,” said Mary Ann Binnie, a nutrition expert with the Canadian Meat Council.

Health Canada notes women are at risk of inadequate intakes of iron, zinc and vitamin B12: essential nutrients found in red meat. The analysis from Statistics Canada highlights that a significant number of women consume less than the recommended number of servings for meat and alternatives.

“I encourage Canadians to cook with whole, naturally nutrient-rich foods and eat together as often as possible. For a healthy plate, fill it with half vegetables and fruit, one-quarter protein and one-quarter whole grains.

Over the course of the week, aim for lots of variety too,” says Carol Harrison, a Canadian Registered Dietitian and founder of Yummy Lunch Club.

Ipsos online poll of 1,003 Canadians conducted September 8-11, 2017 on behalf of the Canadian Meat Council. Sample weighted to reflect Census data. Poll is considered accurate to within +/ - 3.5 percentage points, 19 times out of 20.

For more information, visit www.cmc-cvc.com

May/June 2018

5

CAN TRUMP’S CHAOS HELP THE CANADIAN MEAT INDUSTRY?

By Scott Taylor

For the President of the United States, chaos is good. For him, it keeps people on high alert. They never really know what his point is. Many wonder if he actually has a point. He certainly keeps the world guessing.

Recently, Trump’s journey into the world of international trade has been a foray into protectionism, tariffs and punishment for, well, just about everybody and everything and it has created a new – or very old – trade environment that asks people to accept shortterm pain for what Trump believes will be long-term gain.

tariffs on automobiles, airplanes and soybeans. Boeing is already worried about cutting jobs and worse yet, China has completely stopped buying American soybeans. In fact, China canceled a net 62,690 metric tons of U.S. soybean purchases in the two weeks ending April 19, citing USDA data for the current marketing year.

First it was Trump’s decision to pull out of the TPP. Then, it was the re-negotiation of NAFTA. Now it’s trade tariffs and penalties on China and the European Union. As Americans wait for “all the winning,” they will have to get accustomed to a least an extended period of losing.

China is the second largest market for U.S. agricultural exports, and soybeans have historically have been one of the top products sold to the giant and growing Chinese market, according to the U.S. Department of Agriculture’s Foreign Agricultural Service.

For example, on April 2, China placed a 25 per cent tariff on U.S. pork products. The Chinese also placed 6

May/June 2018

So if there is any good news here, it should be good news for Canada. If the Chinese, and perhaps even the EU, stop buying American agricultural products,

shouldn’t that be good news for Canadian producers?

shipped regardless of the tariff.

“Not necessarily,” said Gary Stordy, the Director of Government and Corporate Affairs at the Canadian Pork Council.

“Chaos isn’t good and you will hear a lot of that these days. The fear of course, and the reason for so much concern is that there are a lot of different tangents this can go down and uncertainty disrupts planning and every business wants to plan. It’s especially difficult for a business like pork because it disrupts a product that people want.”

“I will say that the uncertainty brought by any trade disruptions is not positive for the Canadian pork industry, especially in the context of a fully integrated North American pork market,” Stordy continued. “There are no winners in this situation where two countries with influential economies are dealing with a trade dispute through retaliatory tariffs.

“The Chinese tariffs on U.S. pork will only create a level of uncertainty in the short term and influence markets.

Our industry prefers stability in the marketplace.”

If, in fact, the United States, is no longer in a position to send large shipments to China, it will still send its products to other markets. It’s not as if U.S. pork will be shut down worldwide.

“Any potential opportunities to expand Canadian pork sales into China will be tempered by strong and steady supplies from Chinese pork producers and from other exporters such as the European Union,” Stordy said. “We believe U.S. products no longer shipped to China will end up competing with Canadian pork in other markets while other U.S. pork will continue to be

In Manitoba, Brian Lemon, the general manager of Manitoba Beef, would like to say that all of Trump’s bluster doesn’t affect his producers, but then he admits that it does.

“I can’t count the number of times I have answered questions from producers who preface those questions by saying ‘I can’t’ believe Trump tweeted that,’ or ‘Is he really going to do that?’,” said Lemon.

“What Trump does causes fear and the markets don’t like fear. As well, all that noise causes uncertainty in the minds of producers and suddenly you have a rancher say to himself, ‘Do I want to grow this herd or do I just want to wait till next year and see what happens?’

That’s not good for business.”

On the up side, Stordy says, most of Trump’s bluster is just that – bluster. He’s a guy who talks loudly and tends to carry a malleable stick. The fact that Canadian continued on page 8

May/June 2018

7

Prime Minister Justin Trudeau has often sacrificed his dignity in order to become as friendly as possible to Trump has helped Canada at the negotiating table.

“Right now, there appear to be no firm tariffs,” Stordy said. “It’s a just a back and forth between the United States and China. The first weekend in May, the United States sent a trade delegation to China and while I’m not sure anything came of the meetings, at least they’re talking. It’s unfortunate that these two major trade nations are dealing with it in this way and in terms of the pork side, it’s not clear how U.S. producers and exporters will deal with it, but at least they’re talking.”

The 25 per cent tariffs on pork products that the Chinese want to place on U.S. exporters will go only so far, according to Stordy. After all, the largest producer in the United States – the world -- is a company that is actually owned by the Chinese. As Stordy pointed out, “We all know what Smithfield will do.”

Smithfield Foods Inc. of Smithfield, Va., the largest pig and pork producer in the world (at least 15 million pigs and six billion pounds of pork per year), is now wholly owned by Henan Luohe Shuanghui Industry Group Ltd. of China. Its unlikely Smithfield will change a thing.

“We pretty much know how Smithfield will deal with it,” Stordy said with a bit of a laugh. “They will continue to go into China despite any tariffs because, for one thing, they don’t want to upset their supply chain.”

8

May/June 2018

Here in Canada, all this yelling about “negotiating” might be no more than an all-hat-and-no-cattle situation. After all, prices will ultimately determine what exporters will do.

“The Canada-China market has had a slight decrease in pricing because there has been more competition,” said Stordy. “After all of this, it might be that we maintain the status quo. Right now, we might be sending all we want into that market. Or, then again, we could pull right out of the global market and start ramping up production and heavily increase our exports to China. Of course, it would take at least six months to do that and it’s just one of a number of hypothetical situations that could take place. There are a lot of hypothetical situations.

“We’re waiting to see what happens to other products.

Do the Americans keep shipping to China or do they go into other markets which will increase competition for Canadian products? It’s all really hypothetical and that’s one of the problems. The product will move where it’s supposed to move based on prices.

“What we’re really looking carefully at right now is the price of our live animals moving into the United States.

What will our price be for live animals in the short- and long-term going into the U.S.?”

Which, of course, brings us to the NAFTA chaos.

It would appear that either the trade delegations from Canada, the United States and Mexico will get a new NAFTA deal done before the end of June or, with the Mexican general election and the U.S. midterm elections coming up quickly, it won’t happen until perhaps mid-2019.

Canada’s Foreign Affairs Minister Chrystia Freeland arrived in Washington for the meetings the first week of May and made it clear to the Canadian news media that she did not book a return ticket to Ottawa.

“We are committed to doing whatever it takes to get a good win-win result,” she told the Canadian Press. “But be clear that we will not pre-judge the outcome of the talks.”

The three countries need to be committed to getting it done because Trump – whether he is serious or not – has threatened (as he always does), to impose 25 per cent tariffs on Canadian steel and aluminum if he doesn’t get a renegotiated NAFTA that he likes by June 1 -- a date he “graciously” extended from May 1.

As well, the Mexican general election is July 1 and then along comes the U.S. midterm elections.

“I think the biggest problem is with private investment,” Pedro Antunes, the deputy chief economist for the Conference Board of Canada, told the Canadian Press.

“The uncertainty for businesses about whether they will have access to the North American market has played out a big role in holding back private investment intentions.”

Sources have told CBC News that all three NAFTA countries are seeking an agreement-in-principle in the short term that would focus primarily on the auto sector.

“There’s a long way between an agreement in principle and a final treaty that can be signed and presented to the legislatures of all three countries for ratification,” trade expert Lawrence Herman told CBC News. “This is very complicated, much more complicated than I think anybody realized when they started. They’ve made a lot of progress, but once the outlines of an agreement are there, the technical elements have to be negotiated.”

not be good for any beef-producing province in Canada if the agreement went south. We ship cattle. Live cattle.

We ship it east, west and south. On the national scale, our one federal packing plant really doesn’t make a blip in the market, but our sale of live animals is the basis of our industry and that’s why I believe it’s a good time to have a modernized NAFTA. “It really does need to refresh itself after more than 20 years and this a good opportunity to talk about streamlining a lot of the agreement. Hopefully, a new NAFTA will thin the border just a little more than it is now. We need to quicken the approval process at the border. We need greater access to veterinary medicines. You know that Canadian cattle still have to be branded with Canada on the brand. That’s something from the distant past. We need more regulatory efficiencies.

“In Manitoba we ship a lot of cattle to the packing plants in southern Ontario. Can’t we find a way to ship them more efficiently on the American side? All we need is one Nipigon Bridge to go down and our whole system is out of whack. Our needs may be small in terms of headlines, but they’re quite significant in terms of their totality.”

Here in Canada the media has spent a great deal of time and space opining on the auto industry, but have given very little attention to the needs of the agricultural continued on page 10

RELIABLE FOOD PROCESSING EQUIPMENT

www.birosaw.com

Slice Whole Muscle Boneless Product Accurately, Consistently and Efficiently

And that’s very true. Canada and the European Union reached an agreement-in-principle on CETA (the Comprehensive Economic Trade Agreement) in 2014 and yet it took until 2017 to finalize the deal and present it to various parliaments for ratification.

While Stordy and his beef counterpart in Manitoba, Lemon, would like to get a new NAFTA done sooner rather than later, they also have some concerns about the deal.

Md. 109PCM Mechanical Horizontal Slicer

“I’m a big fan of NAFTA,” said Lemon bluntly. “It would

268RB-7-16

May/June 2018

9

sector. For Stordy, and his pork producers and exporters, a “modernized NAFTA” is a key to moving forward.

“We have made a number of suggestions and points where NAFTA can be improved,” Stordy said. “We are hoping for a modernized NAFTA. “The three countries are more aligned now than ever before. We have quite a modern industry. But there are many irritants and we’re hoping that a new NAFTA will address those irritants.”

One of the major “irritants” for Canadian exporters is how their cargo is treated at the U.S. border.

“Our meat has to stop at a clearing house at the border,” said Stordy. “The paperwork is checked as it should be, but then there is also testing. We don’t dispute that a country has every right to approve what comes across its borders, but when we look at the process we go through with the United States and compare it to what American exporters do when crossing into Canada, it’s so much easier for them.

Here it crosses the border and goes to a CFIAapproved facility for testing. We get the U.S. product across the border. Going into the United States there is often a long delay. That’s one of the irritants we’d like to see changed in a modernized NAFTA. “The ongoing issue, however, is still the dispute mechanism. That reaches pretty close to home for us

10

May/June 2018

because we just finished a lengthy WTO (World Trade Organization) battle with the U.S. (on Country of Origin Labelling in 2015). We would like a better system to deal with trade disputes with the United States.”

But to Canada’s pork producers, a new NAFTA would have other important provisions. One of the problems facing the current negotiation is the clause on government procurement. According to CP, the United States is currently demanding access to Canadian and Mexican markets without offering any reciprocity at all.

However, Trump has also included a “Buy America” requirement for state and local projects and defense contracts. Canada and Mexico, without rolling their eyes, simply argue that the U.S. can’t have a two-way procurement system – one for them and a different one for Canada and Mexico.

“We want to look closely at U.S. government procurement and make that agreement seamless,” he said. “Especially considering the SPS (Standard Procurement System) and the agriculture side are already there. We also want to make sure there are no tariffs on our products. There are no tariffs now, we don’t want them in a new NAFTA. “And we would like a more balanced and formal collaboration with the regulators. Let’s get into a habit of communicating regularly. We are currently advocating for that in a new NAFTA. It helps address

issues before they become issues.”

The United States has also said that it wants to eliminate supply management in dairy, eggs and poultry, which would, immediately, be a political mess for any Canadian government -- Liberal or Conservative. Granted, supply management could be phased out over a decade or so and then government subsidies could be paid to farmers to ease their economic pain, but no government wants to deal with that aggravation.

closest friend, oldest ally, biggest market and yet our whiniest, most mercurial negotiator, is sitting right across the table from us.

It seems that keeping the United States happy and on board is Job 1.

Worst of all, the U.S. wants to replace the independent dispute settlement mechanism with something more stringent, formal and tilted toward the United States’ position and that has always been a deal-breaker for Canada. In fact, if one studies the history of NAFTA, one comes to realize that the dispute settlement mechanism has been at the core of the deal since Canadian Prime Minister Brian Mulroney and U.S. President Ronald Reagan negotiated the first CanadaU.S. Free Trade Agreement way back in 1987.

It is always fun to note that Trump constantly complains about how the United States has been “outsmarted by the brutal Canadians” in the past.

Of course, to be fair to Trump in this instance, he’s actually telling the truth. Canada’s trade negotiators have an impressive legacy of getting the best of the United States on many levels over many negotiations and many disputes.

Of course, as Canadian trade negotiators will tell anyone who bothers to listen, we have to be “brutal.”

Canada, after all, is an open trading nation and our

36 CANADIAN MEAT BUSINESS September/October 2017

May/June 2018

meatbusiness.ca

11

MAPLE LEAF INTRODUCES SWEEPING CHANGES TO ICONIC BRAND Maple Leaf brand responding to the changing needs of Canadian families by using only real, simple, or natural ingredients Maple Leaf Foods is launching the most sweeping changes in the history of its iconic Maple Leaf brand to lead a real food movement in the prepared meats category.

This includes a comprehensive revamp of the entire portfolio so that all products are made with Maple Leaf’s premium meat and real, simple, or natural ingredients. All products will contain NO artificial preservatives, flavours, colours or sweeteners. The brand will lead in transparency, including legible, pronounceable ingredients that consumers trust and can find in their pantry.

“Consumer expectations are changing, and we are rising to the challenge,” said Michael McCain, president and CEO. “Protein is foundational to healthy bodies, and Maple Leaf will stand for delicious food made of real, simple or natural ingredients that parents can feel good about feeding their families. We have committed ourselves to a radical new food manifesto which reflects this revolution and defines the standards this brand will live by.”

“Over the last 18 months, Maple Leaf has reformulated each product carrying this brand, with just the simplest and highest quality real food,” said Adam Grogan, senior vice president, marketing and innovation. “We have taken out the things people don’t want or don’t know, and have only included ingredients that deliver our highest standard of quality and delicious taste. The result is a breakthrough of innovation in meat products that consumers love to eat. They can feel good about their real food choices and can trust the brand through 12

May/June 2018

our commitment of absolute transparency.”

Beginning now, and rolling out through the remainder of the year, Canadians will find a new and refreshed Maple Leaf brand in their grocery stores, including a vibrant new logo, packaging design, and more prominent, easy-to-read ingredient lists on all products. The campaign will be brought to life through a bold, multiphase national marketing program including television, out-of-home billboards, digital and print.

These sweeping brand changes signify a much larger commitment to a sustainable planet.

Maple Leaf Foods is pursuing a vision to be the most sustainable protein company on earth by going beyond the food it produces to create broader social value.

This includes a commitment to substantially reducing its environmental impact on air, water and land; being a leader in animal care; and advancing food security for all Canadians.

Maple Leaf Foods Inc. is a leading consumer protein company, making products under national brands including Maple Leaf®, Maple Leaf Prime®, Maple Leaf Natural Selections®, Schneiders®, Schneiders® Country Naturals®, Mina®, LightlifeTM and Field Roast Grain Meat Co. TM. The Company employs approximately 11,500 people and does business in Canada, the U.S. and Asia. The Company is headquartered in Mississauga, Ontario and its shares trade on the Toronto Stock Exchange (MFI).

CPTPP: AN EXCITING OPPORTUNITY FOR CANADIAN MEAT INDUSTRY the Canadian Federation of Independent Business (CFIB), I figured I needed to share with our government six ways small business owners (and their income) are different from employees.

me differently. In fact, Statistics Canada data shows that employers are about four times more likely to be earning less than $40,000 than more than $250,000.

To fight these latest proposals, CFIB is a proud member of the Coalition for Small Business Tax Fairness, a unified 1. Risk. Business owners take on huge risks in order to Farm Credit exploring theisComprehensive Progressiverepresenting Agreementhundreds for Trans-Pacific voice ofand 50 organizations of earn a Canada living, and(FCC) when has theybeen do, the entire family thousands of businesses allwith sectors the economy. involved.

Many business empty their Partnership (CPTPP) and howowners it intersects withsavings, severalreCanadian agri-food sectorsfrom along theofexpected The Coalition recently sent Finance Minister Bill Morneau mortgage their to homes and borrow friends, family benefits of the deal Canada’s meatfrom sectors. a letter asking the government to take the proposals off and banks to get their business going. Once it does, A strengthening global economy and growing world red meat exports under CPTPP. Canada’s first-mover the table and instead meet with the business community they often rely on family members not only for support, population will support increased demand for red meats. advantage allows for the establishment of improved to address the shortcomings in tax policy affecting private to actively contribute to the business’s success. This Globalbut beef exports are expected to increase 5% in relationships with buyers in export markets. Canada’s corporations. is particularly true on Canadian farms, where each family 2018, while pork exports are forecast to increase 1%. market share in the Japanese imports of pork increased member plays a vital role, often from a young age. If the There’s to have yourreflecting say. Consultations on from 17%still in time 2013fortoyou 21% in 2017 the strong Canada is the world’s exporter business fails, andsixth-largest many do, thebeef whole family is often set the proposal remain open until October 2nd, 2017.

Contact demand for Canada’s high-value products.

At the same representing back fornearly years.5% of world beef exports and your local MP and let them know what the reality is for

By Craig Klemmer

totaling 480,000 metric tons. Canada is the third-largest Getting paid last. A small business owner gets paid pork2.exporter behind the European Union and the else, including employees, suppliers, UnitedAFTER States,everyone representing 16% of world pork exports and of course, governments. I’ve heard thousands of and totaling 1,400,000 metric tons.

stories of business owners taking home next to nothing The Canadian and U.S. red to meat sectors are highly in tough times in order ensure they could pay and integrated with roughly 60% of Canada’s red meat hang onto their valued employees and their business.

time, U.S exports of pork products to Japan have Canadian small owners. declined with thebusiness U.S. market share of Japanese pork imports declining from 41% to 33%.recognizes the Here’s hoping the federal government

important differences between income business Tariff reductions in some casesthe can makeofthe price of owners and employees and abandons these proposals further processed products less expensive relative tothat primary processed meat products.

That can lead to will harm our entrepreneurs and our economy. changes in the composition of Canadian meat exports.

This column was first published in the Huffington

exports destined to the U.S. CPTPP provides 3. Working hours. Any agri-business owner will tell you Post on 25, 2017.meat can result in an opportunity for Canada to diversify its export Larger export demand forAugust Canadian that the nine-to-five doesn’t apply to the farm. More than destinations towards high-value and fast-growing higher productivity Dan investments andof expansion.

And of Kelly is President the Canadian Federation 40 per cent of Canada’s small business owners work 50 Independent Business (CFIB). In thislead capacity, economies in Asia and South America. stronger demand for Canadian livestock will to Dan hours or more per week – compared to only six per cent is the leadthe spokesman and advocate for the views higher profitability across entire supply chain.

CPTPP member countries currently account for around of employees.

20% of Canada’s total red meat exports. Canada 4. Benefits. Many employees—particularly those in exported over $1.8 billion worth of bovine and swine government—enjoy health, dental and other benefits products to CPTPP countries in 2017.

courtesy of their employers. Again, the business owner

What will helpon grow our exports? depends the success of the business to fund any The timeline theorreduction in tariffs ranges benefitsfor they their own family may need. between two and 15 years for beef and pork products. Tariff 5. Paperwork and red tape. Think you have struggles reductions will include:

of CFIB’s 109,000 small-and medium-sized member

Craig Klemmer joined Farm Creditacross Canada in 2009 as an 7,200 agribusinesses Canada, including Agricultural Economist, specializing in monitoring and business members.

Follow Dan onanalyzing Twitter @CFIB the macroeconomic environment, modelling industry health, and and learn more about CFIB at www.cfib.ca. providing industry risk analysis. Craig holds a Master of Agricultural Economics degree from the University of Saskatchewan.

with the Canada Revenue Agency or other

Beef government departments? Consider the massive • Japanese of regulations 38.5% on and fresh/chilled frozen numbertariffs of rules, agencies aand small beef, as well as tariffs of 50% on certain offal will business has to deal with. Want to start a bicycle be reduced 9%inwithin 15 years; tariffs to 50% repair to shop Winnipeg?

You will needoftoup register on processed beef will be eliminated within 15 with up to 44 different agencies before you start.years.

• Vietnamese tariffs of up to fresh/chilled A Halifax dentist needs up31% to 45 on permits to earn andafrozen beef will be eliminated within two years; living. tariffs of up to 34% on all other beef products will be 6. Retirement. This is a big one. While government eliminated within seven years. workers have gold-plated pensions often starting at

Pork age 55, and many employed Canadians have • Japanese over-gate price tariff 4.3% on fresh/ employer-matched RRSPs, theof small business owner chilled/frozen pork cuts and pork offal will be is counting on the value of the business—including eliminated within 10 years. under-gate price any investments owned byThe the corporation—for his or tariffher will be reduced within 10 years. retirement. Succession planning is already major • Japanese up to 20% on especially pork products issue fortariffs small of business owners, when itnot currently subject to the gate price system will comes to the agri-business community. When itbe is eliminated within years.to sell to a third party than it easier and moreten lucrative • Vietnamese of up todown 27%tofor is to pass tariffs your business thefresh/chilled next generation, anditfrozen pork will be eliminated nineofyears; threatens the livelihood and verywithin existence tariffs of up to 31% on all other pork products will be Canada’s family farms, something is seriously wrong. eliminated within nine years.

Sadly, there are lots of Canadians (and, it appears, many

Opportunities lead to higher profitability politicians) who believe that hanging out a shingle to say The you’re U.S. isincurrently exploring negotiations business is a licencebilateral to print money.

I represent with109,000 Japan, entrepreneurs the largest and highest valued across every sector,market who tellfor meatbusiness.ca

May/June 2018

13

September/October 2017 CANADIAN MEAT BUSINESS 21

BAYER PARTNERS WITH THE DO MORE AGRICULTURE FOUNDATION Bayer has announced it has partnered with The Do More Agriculture Foundation – a notfor-profit organization focused on raising awareness and promoting mental well-being for farmers in Canada As part of the partnership, Bayer’s Crop Science division has contributed $20,000 to the Foundation to support its mission of providing support and resources to farmers seeking mental health assistance.

changing the culture of agriculture to one where producers are encouraged, supported and empowered to take care of themselves. This will be achieved by creating awareness, building community and supporting research.

The need to support Canadian farmers’ mental wellbeing has never been greater. According to a study from the University of Guelph, more than a third of Canadian producers are experiencing depression and over half experience anxiety. However, the stigma associated with mental health issues remains a significant barrier for those that need help. Forty per cent of Canadian producers reported they would feel uneasy about seeing professional help due to what other people may think.

“We are so appreciative to Bayer for supporting Do More Ag and Canadian producers. The support from Bayer will allow The Do More Agriculture Foundation to move forward with larger initiatives that will be able to support more producers across Canada,” said Kim Keller, co-founder of the Foundation. “This will create more awareness around mental health and build more capacity within communities across Canada to be able to support community members who may be facing mental health challenges.”

“We believe that through this partnership we can help increase awareness of mental health issues and break the stigma that currently exists in the agriculture industry,” said Al Driver, Bayer Crop Science Canada’s president and CEO. “We see first-hand the challenges that farmers face and encourage them to access these resources to manage their well-being.”

With support from Bayer, Do More Ag will continue the conversation about mental well-being in an accessible way for producers, while breaking the stigma associated with mental health. It will encourage producers to talk about mental health within their operations, families and communities, with the hope of changing the culture in agriculture to one where all producers feel encouraged and supported to take care of their mental well-being.

The Do More Ag Foundation are champions for the mental well-being of Canadian producers and are focused on 14

May/June 2018

For more information about The Do More Agriculture Foundation, visit www.domore.ag

May/June 2018

15

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

By Ronnie P. Cons

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

CANADA STRENGTHENS TRADE RELATIONSHIP WITH CHINA

Vegan, fish and other non-meat diets have been proposed as liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach. healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on Iron found in vegetables is harder to absorb than the iron their meat and poultry purchases. Perceptions may reality but found in meat as it is attached to fibre which inhibits its truth trumps misinformation. Parents and other consumers absorption. want what is best for their health and that of their families.

2. Eat Meat for a Healthier Brain!

They are also aware that a lot of false information is out there deficientand in the micronutrientsrelationships, found in meat have been Canada is a trading nation that is focused on growing investment and as such, are open to scientific facts that can correct their Being trade linked with low IQ, autism, depression and dementia says misconceptions. including diversifying into new and rapidly growing markets in Asia. With a population of 1.4 Dr. Charlotte Neumann, a paediatrician at the University of billion and aangrowing middle pursuing new market opportunities in China is vital to the This provides opportunity for retailclass, meat departments California, as quoted in the article ‘Brain food- clever eating’. to implementgrowth an instoreof ‘Healthy Meat Facts’economy, nutritional and to reaching the Government of Canada’s target continued the Canadian Zinc is crucial for learning and memory. Vitamin B12 to set global the record straight and convince their ofcampaign increasing agricultural exports to $75 billion by 2025. preserves the sheaths that protect nerves. customers that meat and poultry are actually good for one’s health and that should increase than decrease Agriculture andthey Agri-Food Minister,rather Lawrence MacAulay, 3.food”, MacAulay.

“This mission has been a great Booststated Your Immunity with Meat! their purchases of it.

The campaign outlined can have Due to its antioxidant powers,Canada’s zinc is involved in creating recently wrapped up a week-long missionbelow to China, opportunity to showcase high-quality food a direct impact on sales: antibodies to fight freetoradicals that increase ourties, risk for where he promoted Canadian agricultural products and seafood, and strengthen our trade which chronic diseases.

Startdiscussed by displaying instore posters promoting the nutritional and ways of strengthening agricultural trade are of vital importance to diversifying markets for our value of meat. They should be innovative, eye catching and 4.agricultural Power Yourproducts Muscle Growth Meat!the middle class.” between the two countries. and to with growing be designed to specifically contradict any meat myths. The The protein in meat helps build and repair body tissues. comments should allalso be literature quoting research Minister MacAulay met withbased his counterpart, As part of a pilot project agreed to by both countries in are made of protein. That is why athletes who are papers or for maximum effect.Affairs, Various posters should to Muscles Minister ofMDs Agriculture and Rural Han Changfu 2017, the first strength Canadian shipment chilled pork was building muscle increase their of meat consumption. be made - each with a brief but powerful message covering advance Canada’s agricultural trading relationship with exported this month.

The protein to andChina zinc found in meat Seventeen are importantCanadian for muscle one theme. growth andregistered repair.

China. The two ministers discussed key trade issues, federally meat establishments are now eligible Posters can convey the following healthy meat fact including agricultural cooperation and biotechnology export chilled beef derived 5.toMeat is the Complete Protein! from cattle under-thirtymessages: products. Minister MacAulay advocated for China’s months of age and/or chilled porkamino to China.

Meat contains all of the nine essential acids that your 1.

Let’s IRON out the Truth on Meat! body cannot make by itself.

Say ‘hello’ to histidine, leucine, approval of three new genetically modified canola The Canadian meat industry estimates the increased “You would need to eat a massive amount of spinach to isoleucine, lycine, methionine, phenylalanine, tryptophan, traits, which would increase canola exports to China by export values fromThat this isexpansion ofcalled Canada’s meat equal (the iron content) in a steak,” says Christopher Golden, threonine, and valine. why meat is a complete an estimated $400 million every year, using the same an ecologist and epidemiologist at Harvard University in access to China, could be worth upwards of $100 million protein. amount of land and inputs (As – a quoted major increase for canola Cambridge, Massachusetts. by nature.com in the pork and million for beef over the next five 6.for Eat Meat for$125 a Healthy Heart! article ‘Brain foodclever eating’.) productivity. years.

Meat contains lots of the B vitamins needed for the For a woman to receive her daily representing intake of 18 production of hormones, red blood cells and for the proper “China is an important andrecommended growing market, Minister MacAulay also attended SIAL China, Asia’s mg of iron, she would need just 300 grams of cooked bovine Canada’s second largest trade partner is agriculture and functioning of your nervous system.

largest food innovation exhibition, to show his support

Say ‘hello’ to niacin, folic acid, thiamine, biotin, panthothenic for the 47 Canadian exhibitors promoting products acid, vitamin B12 and vitamin B6. They are all found in meat.

to 110,000 SIAL visitors. The Minister also delivered

The line that best defense is a good offense’Beef. does not remarks at‘the a reception hosted

by Canada only apply to sports. It also applies to countering negative The health mission provided the Minister a number ofMeat meat myths.

Implementing an instore ‘Healthy Facts’ nutritional to campaign to set the record straight on meat opportunities meet with industry representatives, and poultry. meeting It is a good way to goexecutives on the offensive including with senior fromby using education your customers and increasing your sales..

e-commerce giant Alibaba. The Minister highlighted

Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of Alibaba’s efforts to expand its presence in Vancouver. meat and poultry. He can be reached at RCons@CCpacking.com.

He also met with representatives from HeMa and GFresh to obtain a better understanding of market challenges and opportunities for Canadian agricultural products.

2018 2017 16 22 CANADIAN MEAT BUSINESS May/June September/October

meatbusiness.ca

ARE CATTLE DRINKING CANADA DRY?

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.

Yes, I think we were the first farm We oftenDF: see headlines about how east of Ontario as far as I understand. human lifestyle and dietary choices I’m not sure why the eastern (particularly beef consumption) can associations wouldn’t have previously impact environmental sustainability. These nominated anybody because there are headlines are often about greenhouse many farms here on PEI doing every gases, but water use has become a part of bit as much as we are as to attain a this conversation as well. Vilifying headlines high level of sustainability. Anyway, and simple, partial arguments are interesting we were very surprised when the PEI and emotional; that sells papers and gets Cattleman’s Association nominated our clicks. Complex, science-based facts about farm. the positive impacts cattle have on the CMB:and Andthe then you were attending environment need for both cropsthe Canadian Beef conference in Calgary and cattle across the country’s diverse andare youless won.exciting, but here they landscape are: DF: Yeah! That was a very nice moment for us.

But I don’t like to use the Beef cattle use water

word win actually. However, being

Make no mistake – it does take more recognized for our commitment was water to produce a pound of uncooked, a real honour. If you want to know boneless beef (over 1,800 gallons/6814 the truth, it was a pretty humbling liters) than to produce a pound of dry experience. As I said to CBC when they peas (178 gallons/674 liters), dry beans phoned me after the conference, I was (488 gallons/1847 liters) or dry lentils (577 just floored, really couldn’t believe it. gallons/2184 liters), or any other protein Soonly nowone that of you have pieces been of crop, butCMB: this is many recognized, do you think that willand information to consider. The pastures draw more attention and garner more feed crops that beef cattle eat account for nominations out of Atlantic Canada nearly all (99%) of the water used in beef going forward? production.

DF: Absolutely.

We’ve Does that mean that the landgotten used atolot of good press island raise cattle should behighlighting convertedthe to crop cattle industry.

I’m positive you’ll production? Not necessarily. There aresee more farms ourallneck woods many reasons why in not landofisthe suitable nominated next year.

And I have to give for cultivated agriculture and why raising the Canadian Cattleman’s Association beef plays an important role in sustainably recognition for choosing a farm from feeding the population.

Prince Edward Island. We are small

Crops are thirstier pastures players in the than national beef industry andstatistics I think it was real credit to their Water use lookaconsiderably to recognize They differentorganization when we balance waterus.use with treated all the nominees royally and it water availability. Here’s an example. At 178 was a real class act.

It was a wonderful gallons per pound, dry peas have a very low experience. water footprint.

In 2011, Canada harvested 5.6 billion pounds of dry peas from 2.4 million acres of land. This works out to 414,562 gallons of water per acre of land continued on page 18 meatbusiness.ca

May/June 20182017 CANADIAN MEAT BUSINESS 17 17 September/October

used for dry pea production.

In contrast, producing a pound of beef requires over 1,800 gallons of water. In 2011, Canada produced 2.46 billion pounds of beef, from 57 million acres of land to grow the pasture, forage and other feed for the cattle herd. This works out to 78,813 gallons per acre of land used for beef production.

What if we cultivated that grassland and tried to grow dry peas instead? It probably wouldn’t work too well. Dry peas need more than five times as much water (414,652 ÷ 78,813 = 5.3) than the grass does.

Much of the land used to raise forage for beef cattle doesn’t receive adequate moisture or have the right soil conditions to support crop production, but it can produce grass that can thrive in drier conditions.

Cattle produce environmentally and economically sustainable protein on land that can’t support crops Forages (pastures and harvested roughage) account for approximately 80% of the feed used by beef cattle in Canada. Nearly a third (31%) of Canada’s agricultural land is pasture. This land is not suited for crop production, but it can grow grass which needs to be grazed by animals to remain viable.

Canada’s beef herd is primarily located in the prairies.

The southern prairies are drought-prone, and the more northerly growing seasons are too short for many crops.

Central and Eastern Canada generally have higher rainfall and longer growing seasons than the prairies, but not all this farmland is suitable for crop production either. Much of this land is too boggy, stony, or bushy to allow cultivation, but it can grow grass.

Grass and other range and pasture plants contain fiber that people can’t digest, but cattle have a specialized microbial population in their stomach (rumen) that allows them to digest fiber, make use of the nutrients, and convert them into high-quality protein that humans can digest. Beef cattle production allows us to produce

18

May/June 2018

nutritious protein on land that isn’t suited to cultivation and crop production.

Water use is only half of the picture Simply focusing on water use per pound of product ignores the water cycle. The water cycle is important – humans, wheat, corn, lentils, poultry, pork, eggs, milk, forages and beef production all use water, but they don’t use it up. They aren’t sponges that endlessly absorb water. Nearly all the water that people or cattle consume ends up back in the environment through manure, sweat, or water vapor. We know that most of the water plants take up from the soil is transpired back into the air. Like city water, the water that beef processing facilities take out of the river at one end of the plant is treated and returns to the same river at the other end of the plant. New technologies to recycle and re-use water can reduce the amount of water needed for beef proces The pastures and rangelands that support beef production are also an important part of the water cycle. Because these lands are not cultivated, they are covered in living plant material all year round and are anchored by well-developed root systems that hold the soil in place. This above- and below-ground vegetation serves to trap snowfall, slow meltwater movement over the soil surface, and helps reduce runoff, overland flooding, soil erosion, and the movement of silt and nutrients into waterways. In grassland environments, this water often collects in sloughs, pot holes or other low-lying areas that provide valuable nesting sites for birds. When grasslands are converted to crop production, these water bodies are often drained and cultivated. Grasslands also have improved soil porosity due to healthy root growth and earthworm activity. This allows more water to infiltrate the soil and recharge groundwater reserves.

Cattle produce greenhouse gases. Forages and grassland store and sequester them.

Cattle produce methane as a by-product of digestion, particularly on pasture and other high forage diets. But water is not the only thing that cycles; so does carbon.

Plants take carbon dioxide out of the atmosphere, incorporate the carbon into plant structures (roots, stems, leaves, flowers and seeds), and release oxygen back into the atmosphere. Because perennial pasture plants live for many years, they develop an extensive root system which will eventually decay and become part of the soil carbon. Because permanent or perennial pastures are not cultivated and reseeded every year, the carbon sequestered by these plants remains in the soil rather than being released back into the atmosphere.

As a result, numerous studies have documented that grasslands have higher soil carbon stocks than adjacent cropland.

and 15%, respectively). The more developed land gets, the less water soaks in (which means less is available for soil organisms, root uptake and plant growth) and the more water runs off (which means erosion, decreased soil productivity, diminished water quality of nearby water bodies and potential flooding).

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

Reductions in summer fallow and widespread adoption of minimum tillage practices across Canada have slowed these losses in soil structure and water infiltration, but grassland and forage remain the ultimate zero tillage practice.

Maintaining ecologically sensitive grasslands supports healthy soil

It’s not just dead roots that provide environmental benefits. Because perennial forages aren’t cultivated, and often grow in dry conditions, they grow extensive Cultivating ecologically sensitive land harms the soil Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility root systems in their search for moisture. For Cultivating drought-prone areas instead of leaving them example, forage legumes like alfalfa develop roots

By Amy Reid, Peace Arch News in permanent grassland drastically increases the risk that penetrate 53 to 63% deeper into the soil than so as to not emit odours. And while there is an operational A federally licensed beef processing facility is inlosses the works of soil erosion, loss of topsoil, and subsequent chickpeas, lentils and other pulse crops. All legumes 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. carbon into the atmosphere. Those of sequestered soil can “fix” nitrogen from the air and convert it into soil only process a limited number of cattle.

“There’s a new building coming forward, new abattoir, I losses have occurred across Canada and awere nitrogen that can improve soil fertility, and forage Chris Les is general manager of Meadow Valley Meats, think notable that’s the on French of slaughterhouse,” particularly the pronunciation prairies in the ‘Dirty legumes like alfalfa can fix up to twice as much nitrogen the company behind the project. Meadow Valley Meats is said Councillor Mike Starchuk.

“So Surrey will have a Thirties’. Cultivation has led to the loss of 40-50% of per acre as annualFood legume crops.Agency license for seeking a Canadian Inspection newer facility with a better capacity so people will have the organic carbon from prairie soils, and 60-70% from the proposed abattoir, to become a federally registered the ability to not have to ship an animal to Alberta to have Lands that are prone to periodic flooding or drought central and eastern Canadian soils. Unlike commercial meat establishment and expand the operation.

Thisforages would it processed. The applications have gone through the benefit from the permanent plant cover that fertilizers, using manure as a fertilizer replenishes allow the meat products to be transported beyond B.C.’s Agricultural and Food Sustainability Advisory Committee.” provide. The roots and vegetation keep the soil in organic matter in these soils. boundaries.

The facility is proposed on a 25-acre property within the place so that it doesn’t wash away in a flood or blow Cultivation also affects soil structure and water “Our focus is on trying to bring a more efficient,root sustainable Agricultural Land Reserve at 5175 184th St. The planned away during a drought.

These extensive systems infiltration. As a general rule, when lands are leftprocess in localhelp improve product to the market, realizingand we can do that now 30,000-square foot abattoir in Cloverdale would up also soil structure water holding in a very limited sense,” said Les. “I caution people when to 100state, head of cattleofper day. their natural 10% precipitation runs off, 40% capacity and water infiltration, and allows groundwater talking to them and they say, ‘What a big plant, that’s going evaporates and 50% enters the groundwater According to a city report, that would make it reserves larger than reserves to recharge better than croplands. to go allow you to go mainstream.’ Well, yes, if you look (25% shallow and 25% deep infiltration). soils any other processing facility in B.C.. ButWhen it would still be in the context B.C., but this is still a very niche plant on theofrange small by water industryinfiltration standards,is compared to the are disturbed, reduced.

As largest land meat Home and we’ll serve a niche industry for producers and for the processing plants in Alberta that process 3,000 heads of is converted to rural development, urbanization and Cattle and soil aren’t the only living things affected market. It’s certainly not going to be a monstrosity of a plant cattle per day. industrial development, runoff increases (20%, 30% and when grassland is converted but it’ll be a big upgrade from the to sitefarmland. currently.” Grasslands 55%, respectively) infiltration decreases 35% The proposedand facility would be fully enclosed(42%, and designed continued on page 20 Continued on page 32

meatbusiness.ca

May/June 2018

September/October 2017 CANADIAN MEAT BUSINESS 31

19

also provide habitat for small and large mammals, hawks, nesting birds, songbirds and pollinating insects.

Converting natural rangeland to crop production results in considerable biodiversity loss, as the native plants, insects, birds, and wildlife that require undisturbed natural habitats do not thrive in cultivated monoculture crops. The World Wildlife Fund has highlighted the negative impact that converting Northern Great Plains rangelands to farmland is having on wildlife populations. If remaining grassland were converted to cropland, in most cases it would not be economical and could be environmentally catastrophic. Over 80% of Canada’s grasslands have already been converted to crop production; this has led to considerable population losses in some species, with up to 87% population declines among some grassland bird species.

The ecological benefits provided by pastures and rangelands are disappearing as more and more acres are converted to cultivated agriculture and urbanization. Canada lost another 5 million acres of grassland between 2011 and 2016 alone. That’s three and a half times the size of Prince Edward Island.

Crops and cattle go well together Crops, cattle and grasslands need each other. For example, canola crops yield and ripen better when they are pollinated by bees. Because an entire field is seeded at the same time, all the canola plants flower at the same time, and each plant only flowers for two or three weeks. Grasslands provide a home for a wide range of plants that all flower at different times.

That means bees have lots of plants to help support them during long periods when annual crops aren’t flowering. Over 140 bee species are reside in Canadian grasslands; bee abundance and diversity are positively related to the presence of grasslands.

Crops (primarily feed grains) account for roughly 20% of the feed consumed by cattle. Some of these crops were deliberately seeded to produce feed grain for cattle, 20

May/June 2018

but not many. For example, barley is an important grain crop in Western Canada. Malt barley (for brewing) generally brings a higher price than feed barley (for livestock). But poor growing or harvesting conditions can produce barley that does not achieve malt grade.

Using off-grade malt barley as livestock feed allows it to be recycled into high-quality protein rather than discarding it. If the weather had cooperated and the barley had been accepted for malting, the water used to grow that barley would have contributed to beer’s water footprint. But due to inclement weather, that water contributed to beef’s water footprint instead. A similar scenario occurs for wheat that does not meet the criteria for human consumption.

Cattle also make use of many crop by-products that humans can’t use. For most crops, only the seed is used for human consumption, whether it is milled for flour, sprouted for brewing, split for pea soup, pressed for oil or cooked and eaten whole. The rest of the plant – the stems, leaves, shells, screenings, hulls, shriveled and cracked seeds, residues from brewing and bioethanol production – are useless for human food but are excellent, high quality feed for cattle.

Many environmentally sustainable and economically healthy farm operations produce both beef cattle and crops. In the same way, a balanced, environmentally sustainable, healthy diet includes both plants and beef.

Sit back and take a quick virtual tour of Canada’s rangelands, courtesy of the University of Alberta’s Rangeland Research Institute. It will help you to see greenhouse gas or water use numbers in catchy headlines in perspective, and to remember how each serving of beef you eat helps maintain ecologically sensitive soils, natural habitats, watersheds, and critical landscapes that support a wide variety of threatened and endangered species.

This article courtesy of the Beef Cattle Research Council.

For more information, visit www.BeefResearch.ca or email info@ beefresearch.ca

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

May/June 2018

21

U.S. BEEF INDUSTRY LEADERS RELEASE FIRST-EVER NATIONAL FRAMEWORK FOR BEEF SUSTAINABILITY The U.S. Roundtable for Sustainable Beef (USRSB) recently opened a 60-day public comment period on the group’s Sustainability Framework.

The USRSB Sustainability Framework is a set of resources developed to assist ranchers, cattle auction markets, feedyards, packers, processors, and retail and food service organizations in their efforts to continuously improve the sustainability of U.S. beef.

Stackhouse-Lawson said. “This approach celebrates the diversity of the U.S. beef community, while providing enough flexibility to address the unique sustainability challenges across our national production system.”

“The Framework was developed from the collective efforts of more than 200 individuals who make up the USRSB and represent all segments of the beef value chain from producers to retailers, including nongovernmental organizations and academic institutions,” said Kim Stackhouse-Lawson, JBS USA Sustainability Director and 2018 – 2019 USRSB Chair. “The USRSB membership has invested more than three years in developing these resources, which we believe will serve as an invaluable tool in enhancing U.S. beef sustainability and increasing economic opportunities in rural landscapes across America.”

The key areas identified by the USRSB as being important to the sustainability of beef are referred to as High-Priority Indicators. These include: animal health and well-being, efficiency and yield, employee safety and well-being, land resources, water resources, and air and greenhouse gas emissions. Sustainability Metrics and Sustainability Assessment Guides serve as the segment-specific elements of the Framework tailored to address the unique challenges in the cowcalf, cattle auction market, feedyard, packer and processor, and retail and foodservice sectors.

The USRSB Framework highlights key areas important to the sustainability of beef and examines unique opportunities for each segment of the beef value-chain to identify opportunities to improve and reflect on their individual progress. Most importantly, the Framework is not a one-size-fits-all approach. It is designed to address the needs of the diverse beef communities who produce, buy and sell beef.

From the rancher to the consumer purchasing beef for their family meal, everyone plays a unique and important role in beef sustainability. The USRSB Framework was intentionally designed to apply to all sizes and types of operations and companies, no matter where they are in their sustainability journey,”

22

May/June 2018

“The USRSB Public Comment Period is an opportunity for us to listen. As we open this conversation to the public, we will build upon the USRSB’s foundational work with the important input from interested stakeholders,” said Stackhouse-Lawson. “Our journey is not complete after the comment period. The USRSB’s mission is to continuously improve, meaning we will always need to evaluate, assess, and adapt to ensure the U.S. beef value chain remains the trusted global leader in sustainable beef production.”

The USRSB Public Comment Period will end July 1. To learn more about the USRSB Sustainability Framework or to participate in the 60-day public comment period, visit www.USRSBFramework.org.

CCA DISCUSSES TRADE WITH USTR INOTEC LINK CUTTER HONORED

Canadian Cattlemen’s Association (CCA) Executive Vice President Dennis Laycraft and Director, Government and International Relations John Masswohl participated in recent discussions at the Office of the U.S. Trade Representative (USTR) in Washington, DC. There, they met with key officials to discuss many trade preference Canada will enjoy over the U.S. on beef issues including how Canada and the U.S. can work exports, one likely outcome is on the trade in feeder Tom, to Kittle, president of the Handtmann Canadian operations represent INOTEC, together resolve ongoing trade issues with ChinaUS andcattle.

Historically this tradethat has been predominantly has announced that the new generation INOTEC WT99-iT Link Cutter was recently honoured with and the European Union (EU). For example, the U.S. from Canada to the U.S., but with the tariff preference and Canada faceequipment identical Sanitary andaward Phyto-Sanitary it is likely that independent more feeder cattle will remain in Canada the highest design

by Germany’s oldest design institution, the (SPS) barriers in the EU that undercut their negotiated and it is possible that we will see some feeders moving International Forum Design GmbH, located in Hannover. access for beef. Working together to remove these from the U.S. into Canada.

Selected from more than 5,000 applicants from 59 processors. In fact, the iT series is a model for modern barriers will be more effective than going it alone. countries, the INOTEC WT99-iT link cutter was noted for

The outlined severaldesign waysand thatdynamic Canada-U.S. itsCCA outstanding hygienic precision performance proven technology that has been beef and cattlewith trade could be improved, such as by upgraded redundant from previous generationsofinbeef everyand critical area eliminating inspections removing affecting sanitation, performance, reliability and simplicity duplicative requirements for animal ID. of use.

The CCA also shared the Canadian perspective of Thethe new iT generationlive link cattle cutterstrade are complying with all how Canada-U.S. might change of the hygiene, sanitation and ergonomics requirements once Canada implements the Comprehensive and and are meeting all of the for efficiency and Progressive Agreement fordemands Trans-Pacific Partnership reliability in the heavy duty working environments of modern (CPTPP) without U.S. participation. Given the tariff

meatbusiness.ca

food processing equipment design with simple controls, rounded edges, many ergonomic features, free access to all elements for maintenance and SEVERAL cleaning, and faster speeds THE CCA OUTLINED WAYS THAT made possible by even more precise cutting.

CANADA-U.S. BEEF AND CATTLE TRADE INOTEC iTCOULD series link BE cutters work with all sausage IMPROVED, SUCHtypes AS BY with extremely high precision at speeds up to 1800 cuts ELIMINATING REDUNDANT INSPECTIONS per minute for very efficient pairing with high performance OF BEEF AND REMOVING DUPLICATIVE packaging machines.

REQUIREMENTS FOR ANIMAL ID.

For more information, visit http://www.Handtmann.us/Inotec or http://www.Handtmann.ca/inotec

May/June 2018

September/October 2017 CANADIAN MEAT BUSINESS 25

23

PRIMARY AGRICULTURE REVIEW OF TEMPORARY FOREIGN WORKER PROGRAM The acute labour shortage in Canadian agriculture continues to be an issue that threatens the viability of food production and the competitiveness of beef cattle farmers in Canada. The Government of Canada’s Employment and Social Development department has initiated another review of the Temporary Foreign Worker Program (TFWP) for Primary Agriculture, which kicked off with consultations in Ottawa on May. The Canadian Cattlemen’s Association (CCA) attended the session along with many other representatives across the agriculture and food processing industries to raise awareness of current challenges with the TFWP and offer solutions that will improve access to foreign labour when Canadians are not able to fill job vacancies. One solution farmers provided is to improve service delivery standards for the Labour Market Impact Assessment process.

Addressing inconsistent rule changes, such as wage rates, and fostering better communications with applicants about any changes would be another welcomed change. Improving administrative issues regarding housing that add excessive costs and advancing further pathways to permanent residency for agriculture workers were also key areas discussed.

Addressing these issues would be critical to alleviating long waiting times, unnecessary application refusals and added costs for producers trying to access workers to sustain and grow their operations.

On the previous day, the Canadian Federation of Agriculture hosted a discussion focused on bringing agricultural representatives together with departmental 24

May/June 2018

officials to discuss steps to improve the fairness, efficiency and transparency of service delivery in the TFWP. This included a roundtable discussion with Patty Hajdu, Minister of Employment, Workforce Development and Labour, Lawrence MacAulay, Minister of Agriculture and Agri-Food, Rodger Cuzner, Parliamentary Secretary to the Minister of Employment, Workforce Development and Labour and Serge Cormier, Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship.

The message from Ministers and Parliamentary Secretaries was that while Canadians need to be the first choice for agriculture jobs, it is critical that farmers and food processors have access to the workers they need. The CCA remains committed to working closely with the Government of Canada and other agriculture commodities to address workforce shortages in the sector. Primary Agriculture reviews for the TFWP will be ongoing across Canada in May and June.

If you are a beef producer facing challenges accessing labour through the TFWP, please reach out to CCA so that your concerns can be raised in the review.

ONTARIO CHICKEN TO GET A BOOST FROM NEW NSF INTERNATIONAL FOCUSES ON ACCELERATOR PROGRAM CANADIAN FOOD INDUSTRY WITH NEW

By Owen Roberts, Farm Credit Canada

WEBSITE FOR SERVICES IN CANADA

The Chicken Farmers of Ontario is launching a unique business accelerator program to create new consumer products.

Global public health organization showcases services for Canada’s growing and fast-changing industry base in Canada. That makes it a prime market for new The food organization says the Ontario Chicken Innovation and NSF Growth Program, a first-of-its-kind initiative, will International in Canada recently launched a new stimulate more growth in the already website - www.nsfcanada.ca - to givebooming Canada’schicken growing industry. and complex food and beverage industry easy access to the global public health organization’s expertise and

All chicken used in the program must be grown and services in Canada. The website combines information fully on processed Ontario. And all applications the depth,inexperience and capabilities of the must NSF include a primary processor as a partner.

International Canadian office with access to NSF International’s services Innovative ideasglobal with a track dedicated record to food safety

products. accredited International Association for Continuing Education andisTraining (IACET)opportunity site. Topics include HACCP, “This program an excellent for all of us to food safety and quality, GFSI benchmarked standards, look at innovations in development and accelerate their regulations (including FSMA), food science, food packaging, market entry,” he says. food microbiology and ISO standards. Training modalities

The application deadline July 13, 2018. include eLearning, on-site,iscustomized and open enrolment.

Additionally, Bottom line the website includes information about

management system registrations for the food, automotive,

Ontario Chickeninformation Innovationsecurity, and Growth Program environmental, medical devices,plans Through the program, companies involved in chicken to aerospace stimulate and provincial growth throughout theforchicken Evolving regulations across countries and increasing chemical industries, as well as Ontario processing, marketing and sales - including primary industry’s valueprograms. chain, from the primary producer complexities associated with a globalized food supply drinking water processors, further challenges processors, foodservice network present for retailers, NSF International clients in through to the consumer.

Visit the new Canadian website at www.nsfcanada.ca to review the food and Canada restaurant companies – will submit innovative and and around the world. The new Canadian website safety services capabilities video, find a list of Canadian food experts, learn partially ideas the CFO. about upcoming events and global news releases, a question offersproven expertise andto services to help companies navigate YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read and quality.

these challenges, including certification and auditing,

An independent advisory committee chaired by former consulting, technical services, training and education, Superior Court of Ontario judge Douglas Cunningham food and label compliance, packaging, and product and will review processideas. development.

an FAQ.

“ThisNSF program is all about accelerating innovative International’s Canadian website provides information products meetservices: consumer needs,” Cunningham on thethat following says.Certification “We’re looking for products that food havesafety someaudits track & auditing: Third-party record piloted or introduced to the market in theoflast and–certifications, which are integral components 18 months that historical sales compliance. data can beAccurate part of supplierso selection and regulatory audits are the first step toward successful verification the application.” of a company’s food safety system, providing improved

He says applications will be scored on their own merits. brand protection and customer confidence. Certifications Thatand means multiple innovations could audits are available for animal and win. produce in the agriculture industry, GFSI certification and management Working together system registration.

Rob Dougans, CFO president, says successful Consulting: A full-service team approach providing applicants will receive an additional volume of chicken technical resources, expertise and insight for a wide range to process, in recognition their innovations. of food safety and qualityofservices.

NSF International provides finished product chicken inspection testing for food, He says there’s “no doubt” consumption will packaging and non-food testing for rapid analysis and continue increasing if the program comes together as insight to protect the brand, technical support services envisioned. from on-site temporary or permanent technical staffing

“When processors, retailers, restaurants and placements, and various types of consulting. foodservice with farmers to Technicalcompanies services: Acollaborate one-stop solution for food product identify and grow market, everyone benefits,” compliance andthe formulation, from concept to finished Dougans says. product, including food and label compliance, packaging, product and process development, and shelf-life and

Michael Burrows, chair of the Association of Ontario product evaluation.

Chicken Processors, says Ontario is home to the Training andfarming, education: Training for theconsumer global food largest chicken processor and and beverage industry across the supply chain as an meatbusiness.ca

May/June 2018 25 September/October 2017 CANADIAN MEAT BUSINESS 23

CANADIAN RED MEAT CONTINUES TO BE A GLOBAL FAVOURITE

By Richard Kamchen, Farm Credit Canada

Canada’s pork and beef exports climbed higher in 2017 and 2018 looks to be another good year.

Canada’s pork exports rose 3.1 per cent to nearly 1.3 million tonnes in 2017, while beef and veal exports increased 5.7 per cent to 380,021 tonnes, Agriculture and Agri-Food Canada reported earlier this month.

“Data for the first two months [of 2018] shows Canadian beef exports up eight per cent and pork exports up just under one per cent on a tonnage basis,” says Jason Wood, livestock market analyst with Alberta Agriculture.

WORLD DEMAND FOR CANADIAN BEEF AND PORK IS STRONG AND ANALYSTS ARE OPTIMISTIC ABOUT CONTINUED STRENGTH THROUGHOUT THE YEAR. Pork outlook Wood is bullish about Chinese demand for Canadian pork.

He explains total Canadian pork exports, including offal, to China broke 300,000 tonnes in 2017, “which more than doubled exports from a few years ago.”

“I would agree that China has the greatest potential given the current world trade context,” says Tyler Fulton, director of risk management for Hams Marketing Services.

Beef view

26

May/June 2018

Wood also likes China’s potential beef appetite.

Canadian beef exports to China were up 34 per cent to over $82 million in 2017, and Chinese market access for beef is likely to keep growing thanks to expanded market access for Canadian frozen bone-in beef, and a pilot project for Canadian chilled beef, Wood says.

But China isn’t ready to throw its doors open just yet, adds Brian Perillat, senior market analyst of Canfax.

China still doesn’t allow for some widely used growth promoting feed additives.

Trade Trade negotiations are also being monitored for possible impact on the red meat industry. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership opens the door to new and emerging Asian markets like Vietnam and Malaysia, and major markets like Japan.

And, since the United States is Canada’s top export destination for pork and beef, the NAFTA discussions are of interest, however, Perillat says the U.S. has a strong appetite for beef that Canada currently helps fill, with exports up 14 per cent in volume and 21 per cent in value.

Bottom line World demand for Canadian beef and pork is strong and analysts are optimistic about continued strength throughout the year.

QUEBEC DELI FAO AFFIRMS MEAT COMPANIES CATTLE’S AWARDED CRITICALFINANCIAL ROLE ASSISTANCE FOR AS UPCYCLER EXPANSION

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

In businesses the livestock in feed humansector, Boucherie food debate, we haven’t been Two theversus agri-food using the right numbers.

Rather than being a drain on global Charcuterie Perron Inc. and Charcuterie L. Fortin Ltée., resources and competing with human food supplies by eating lots have been granted a total of $1,850,000 in financial of grain, livestock are often net contributors to the global assistance from Canada Economic Development for protein supply.Regions That’s the(CED). conclusion of a new study from scientists Quebec The support will generate an at the United Nations Food andtotal Agriculture Organization (FAO). estimated $6,569,768 in investments in the Saguenay– Lac-Saint-Jean region.

The FAO researchers developed a global database of what livestock eat and found

The86 repayable wereinedible. announced bylivestock Richardeat Hébert, percent ofcontributions the feed is human Mostly, grassesMember grown onof Parliament Lac-Saint-Jean, the Honourable Navdeep marginal for lands and other forageacting crops,on likebehalf alfalfa.of Marginal lands are those that Bains, Minister Innovation, Science andcultivated Economic Development and are too rocky,of steep and/or arid to support agriculture, such as fruit or vegetable production.

Minister responsible forGlobally, CED. livestock also eat over 1.9 billion metric tons of leftovers from human food, fiber and biofuel production.

A $1,000,000 contribution was granted to Boucherie Charcuterie Perron For example, livestock eat to theCharcuterie residues of grain harvest and $850,000 was granted L. Fortin so(the thatstalks they and canleaves carry in the field after corn harvest), the byproducts from milling for flour out left projects to improve their productivity and expand.

Withgrains this financial production midds),will cottonseed is a leftover cotton production, support, both(wheat businesses be able that to upgrade theirofequipment and and glycerol and distillers grains 4.0 that by areautomating byproducts of soyofbiodiesel and corn ethanol facilities, shifting to Industry part their production. production, respectively. If livestock didn’t consume these plant-derived leftovers

“Byand helping businesses invest in better facilities and in equipment byproducts, their disposal would likely result in an environmental burden. andBy appliances that willglobal enhance performance, the Government being a part of the foodtheir system, livestock enhance the sustainability of of Canada is standing by its commitment to stimulate expansion and other food production and industries. innovation in Quebec regions,” stated Minister Bains.

Considering that most of what cattle eat is not human edible, the FAO researchers

Both companies, which areinpart themilk Nutrinor cooperative, employ found that 1 kg of protein meatofand only requires 0.6 kg of protein nearly from 125human peoplefood. in the region.

The products of Boucherie Charcuterie Perron are Additionally, the protein in meat and milk is of higher nutritional of exceptionally good quality owing to its rigorous methods and compliance quality compared to the protein in grain that cattle eat. with traditional manufacturing processes in all production phases in The FAO research represents global averages, but beef production in the U.S. Saguenay–Lac-Saint-Jean, from livestock nutrition to meat processing. competes even less with human edible food. In a recent report published by the Charcuterie L. Fortin made its mark through the authenticity of its products National Academies of Sciences, Engineering and Medicine, it was estimated andthat offers consumers superior on average greater than 90quality percentmeats. of what grain-finished beef cattle eat in

their lifetime is human forages andtwo plant-derived leftovers.

Lessathan 10 “The investments we areinedible making in these deli companies mark percent of their lifetimestated feed consumption is grain that could potentially“Through be eaten turning point for them,” Jean Lavoie, President of Nutrinor. people. our by contributions and the assistance granted by Canada Economic Development, willpublished be able by to modernize ourAgricultural equipment and processes Further, in a we report the Council for Science and to remain competitive in the Canadian market in afound key Saguenay–Lac-SaintTechnology, U.S. grain-finished beef systems were to contribute 19 percent Jean industry.” more human edible protein than they consumed.

Place, Ph.D., is a Senior Sustainable Beefof Canada through Production Research, with CED›s Quebec the National TheSara funding awarded byDirector, the Government Cattlemen’s Beef Association.

Economic Development Program will help the recipient businesses continue View the FAOimprove study at: http://www.sciencedirect.com/science/article/pii/ to grow and their production capacity.

S2211912416300013?via%3Dihub

meatbusiness.ca

September/October May/June2017 2018CANADIAN MEAT BUSINESS 2727

USING SENSORS AND BLOCKCHAIN FOR BETTER ANIMAL WELFARE IN TRANSIT

By Lilian Schaer, AgInnovation Ontario

A new sensor-based tracking system for livestock could provide peace of mind for farmers, food companies and consumers that animals are being treated humanely during transport.

Transport Genie monitors microclimate conditions inside livestock trailers and provides that information to users along the supply chain using blockchain technology.

Blockchains are a digital ledger of all transactions in a supply chain – information is passed along digitally as an attachment to the chain instead of through a paper trail and the permanent links between the blocks eliminate the possibility of data tampering.

“The devices currently monitor conditions like humidity and temperature inside a trailer, but could in future also track things like CO2 levels, acceleration and breaking to ensure livestock arrive at their destination safely, alive and healthy,” explains Kristen Celotto, part of the Transport Genie development team. “And if animals are injured or die in-transit, the sensors can indicate what went wrong and when.”

Although there are already other sensors on the market that do similar tasks, Transport Genie’s advantage is that it provides the information in real-time – to the transport driver, as well as dispatchers and others who wish to receive notifications via email or text message.

“Older devices only record data but that doesn’t help in transit. Our sensor will tell you immediately if the temperature is getting too high, for example, so that drivers can take action right away based on accurate real-time data,” says senior developer Idris Soule.

Small sensors are placed in various areas of the transport trailer that record data and transmit it to a server. They’re also connected to a monitor in the truck’s cab and automatically send alerts if they notice

28

May/June 2018

changes in temperature or humidity. If the server connection is dropped, the information is stored in the cab and uploaded once the system goes back online.

“Our data is compact so it doesn’t take a lot of space, and the onboard cab device accepts SD memory cards,” says Alexander Evans, another development team member, adding that data will be securely stored for years, not just days or weeks.

Transport Genie is customizable to different livestock species as well as different types and sizes of trailers.

The sensors have battery life up to three years and are specifically built to withstand the rigours of truck biosecurity washing, drying and disinfecting procedures.

The company has applied for a patent for its technology, and will be exhibiting at upcoming industry events, including the Ontario Pork Congress. A soft-roll out with a few early interested customers is expected to begin shortly.

“The information we gather will give farmers, transporters and processors assurance that the livestock they’re shipping, handling or receiving are humanely transported – and it gives food companies the ability to confidently stand behind animal welfare declarations on their products,” Soule says.

Transport Genie has received funding through the Accelerating Innovative Research program, which is administered by Bioenterprise and supported by the Ontario Ministry of Agriculture, Food and Rural Affairs.

For more information, visit www.aginnovationontario.ca

WORKING THROUGH THE HAZE

By Marilyn Braun-Pollon

The haze, so to speak, is beginning to clear as provincial governments unveil their legislative plans in anticipation of cannabis legalization at the end of the summer.

The process continues to have many moving parts; touching on a range of government departments and having many fiscal, social and health considerations.

While there are opportunities in some provinces for business owners to get directly involved in the new cannabis market, for other owners, interactions with recreational cannabis will be as employers and taxpayers.

As the legislation day approaches, here are a few important issues that will impact businesses, which governments need to focus on.

Safety at work While much of the political and media attention has been on law enforcement and keeping cannabis out of the hands of minors, business owners across the country are just as concerned about how cannabis is going to be treated in the workplace.

So far, governments have been vague on the impacts of legalization on workplaces, preferring instead to

state that it’s no different from the treatment of alcohol or other drugs, including prescriptions. Reasonably, much of the discussion around legalizing recreational cannabis has been around law enforcement, particularly around determining impairment levels as they relate to impaired driving. But as governments themselves raise concerns about safety of drivers due to cannabis, employers are right to be worried about safety at work.

In fact, at the Canadian Federation of Independent Business (CFIB), we are already getting questions from business owners: what if an employee smokes off site during a break? Or eats a pot brownie at lunch, delaying the effect? How do employers balance scent-related sensitivities among employees? What are an employer’s obligations around accommodating medicinal use?

With governments’ role in setting standards for occupational health and safety, it is entirely reasonable for business owners to expect government to provide continued on page 30

May/June 2018

29

guidance and advice around what is safe and acceptable use of cannabis with the workplace in mind.

able to operate in an environment that allows them to be competitive.

We know workplaces already may establish safety rules and procedures to deal with worker impairment and or safety considerations; however, rules around drug policies, which many employers will be urged to implement, are much less clear. For example, to date, random drug testing is forbidden in Canada except in very specific circumstances, so where will the burden of proof lie for employers that suspect drug use in the workplace?

Setting up an entirely new retail and distribution network will cost money. And many provinces have decided to set up public sector cannabis monopolies instead of allowing a role for a regulated private sector.

This means taxpayers will ultimately bear the full brunt of the cost – prime retail space, inflated public sector salaries and maintaining the supply chain. To date, we’ve seen hardly any cost breakdown from these provinces – a trend that’s becoming far too common on rushed policies.

WHILE MUCH OF THE POLITICAL AND MEDIA ATTENTION HAS BEEN ON LAW ENFORCEMENT AND KEEPING CANNABIS OUT OF THE HANDS OF MINORS, BUSINESS OWNERS ACROSS THE COUNTRY ARE JUST AS CONCERNED ABOUT HOW CANNABIS IS GOING TO BE TREATED IN THE WORKPLACE.

Learn from the mistakes of alcohol As any business that deals in the alcohol industry can tell you, there are significant barriers to the alcohol trade between provinces. While there is optimism the Canadian Free Trade Agreement (CFTA) and the upcoming decision from the Comeau case in front of the Supreme Court, barriers are currently very much intact.

Sadly, it doesn’t appear that we’ve learned many lessons and again have created a patchwork, inconsistent approach to recreational cannabis across the country. We’re very concerned that as provinces rush to regulate and sell cannabis, they are recreating the same types of barriers that exist and have been so difficult to dismantle around alcohol.

We’re continuing to push governments to use a coordinated approach, as much as possible, to minimize cannabis-related red tape and trade barriers and avoid the regulatory patchwork that we have with alcohol. Even unintentional barriers add costs for businesses and consumers, which will only benefit the underground economy.

Ensuring competitiveness of private retailers In order to ensure recreational cannabis sales come out of the black market and into a legal, regulated and taxed market, it is important that legitimate retailers are 30

May/June 2018

Governments should not be naïve and assume they won’t face competition. There is a thriving black market for cannabis currently meeting consumer demands.

If legal products don’t deliver the cost and service expectations of customers, the underground market will continue to thrive. A government-run monopoly selling cannabis will not be a license to print money.

In provinces allowing a role for private sector retail, it must be done right. If taxes or regulated prices are set too high, the black market will continue to flourish.

If the regulatory regime is too restrictive, legitimate operators will never gain a proper foothold.

To be sure, the legalization of recreational cannabis is a huge, multi-faceted regulatory undertaking for governments but fast-tracking the regulatory process can’t become an excuse for not doing a thorough and thoughtful job. This includes being mindful of how we are using tax dollars and ensuring the concerns of employers are heard.

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 takes direction from more than 110,000 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.

2 CANADIAN MEAT BUSINESS July/August 2017

May/June 2018

meatbusiness.ca 31

32

May/June 2018