FCC: Food and Beverage Industry Faces Mixed Outlook in 2025
Olymel Promotes Canadian Pork with New Product Launch
How WBC Paris 2025 Turned Competition Meat into Thousands of Meals
Incessant Trade Disruptions Impacting the Agriculture Sector and Industry Mixed Outlook in with Launch How Meat into Trade Agriculture
May 2025
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CCA Congratulates New Government
6 11 14 16 19 23 26
Olymel Promotes Canadian Pork with New Product Launch
Smithfield Foods and the Implications of Chinese Ownership
FCC: Food and Beverage Industry Faces Mixed Outlook in 2025
China Cancels U.S. Pork Shipments
How WBC Paris 2025 Turned Competition Meat into Thousands of Meals
Thermal Trace: Wireless Temperature Monitoring System for Cooking and Cooling
Incessant Trade Disruptions Impacting the Agriculture Sector
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CCA CONGRATULATES NEW GOVERNMENT
STATEMENT FROM THE CANADIAN CATTLE ASSOCIATION (CCA)
“On behalf of beef producers across Canada, the Canadian Cattle Association (CCA) congratulates the Liberal Party of Canada on forming the next federal government and welcomes all Members of Parliament elected or re-elected to Canada’s 45th Parliament. In order to grow our herd, meet the increasing world demand for high quality beef, and keep our costs competitive, we need impactful government policies, legislation and regulatory reform for beef producers.
“We look forward to working with Prime Minister Carney, cabinet ministers and all Parliamentarians to ensure our economic growth as a sector and as a country, starting with a strong focus on our relationship with the United States,” says CCA President Tyler Fulton.
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“The global demand for beef production has never been greater and Canadian beef producers are a key economic driver for Canada—all market signals show there is an opportunity to grow our herd. Our priorities for policy makers include trade and market access; reducing regulatory barriers, and supporting effective economic tools including livestock price insurance.
“Export driven agriculture continues to be a key growth sector of Canada’s economy, and the beef cattle sector is the largest commodity in Canada, contributing $29 billion to GDP, with more than 347,000 full-time-equivalent jobs. With the uncertainty of trade and geopolitical tensions, we need strength and leadership to build strong policies that support economic growth.”
For more information, visit https://www.cattle.ca/
Juliette Nicolay, Seth Millstein, Cam Patterson, Jack Roberts
SMITHFIELD FOODS AND THE IMPLICATIONS OF CHINESE OWNERSHIP
By Seth Millstein, Sentient Media
The largest pork producer in America is owned by a Chinese company and a lot of people don’t like that. Critics of the corporate acquisition that took place in 2013 argued that Smithfield Foods’ Chinese ownership was a national security threat. Now, a political action committee (PAC) is building on that sentiment, warning that Congress is being lobbied by Smithfield and other pork industry groups to slip language into the Farm Bill to gut the animal welfare protections of California’s Proposition 12. If successful, the PAC argues, this Smithfield-supported reversal of Prop 12 could multiply the threat to national security even more. But there are other problems with the company that long predate any Chinese involvement.
SMITHFIELD’S CHINESE OWNERSHIP, EXPLAINED
Founded in Virginia in 1936 as a meatpacking company, Smithfield Foods steadily grew over the decades to become one of the biggest meat producers in the country. But in 2013, WH Group, formerly known as Shuanghui International Holding Limited, one of China’s largest meat producers, purchased Smithfield outright for $4.7 billion.
It was the largest-ever Chinese acquisition of an American company and was highly controversial in America. The central concern among critics has remained largely the same in the years since: that giving China control over such a huge chunk of America’s pork supply represented a threat to American food security.
But what exactly does it mean to say that “China owns Smithfield?” Does the Chinese government itself run the company, as many critics have alleged, or is it just private citizens and businesspeople?
The answer isn’t straightforward. On the one hand, WH Group is a private company that’s traded on the Hong Kong stock exchange. Smithfield CEO Larry Pope testified to Congress in 2013 that WH Group was not managed or run by the Chinese government, and Smithfield itself is still managed by American executives.
But according to a 2015 investigation by the Center for Investigative Reporting (CIR), WH Group does not operate independently from the Chinese government, at least, not entirely.
To begin with, the state-owned Bank of China facilitated the Smithfield purchase by giving WH Group a $4 billion loan. And although the company operates with a large degree of autonomy, it’s still required to adhere to the general goals outlined in the Chinese government’s five-year plan, and is expected to follow any directives it receives from the government to that effect.
To be sure, this isn’t specific to WH Group. The Chinese government is closely involved with all of its domestic industries, and regularly plays an active role in the running of private enterprises. The real question, at least insofar as Smithfield goes, is what this means for Americans — and Americans’ food supply.
WHY DO PEOPLE OBJECT TO CHINESE OWNERSHIP OF SMITHFIELD?
While Smithfield’s Chinese ownership has drawn controversy for a number of reasons, most criticism focuses on two topics: national security and American workers.
NATIONAL SECURITY
After purchasing Smithfield in 2013, WH Group owned one-in-four pigs raised in the U.S., according to a 2015 report. Many fear that giving a foreign company this much control over America’s food supply poses a national security risk, as it could imperil Americans’ access to domestically produced food.
At least one agricultural economist disagrees, however. “Chinese ownership of agricultural land does not threaten our ability to produce food,” agricultural economist David Ortega wrote in an op-ed at The Hill in 2024. “Food insecurity arises in our country not because of production deficits, but because of issues of affordability and access facing consumers.”
The U.S. is the third-largest pork producer in the world, and already exports around one-third of the pork it produces domestically. In an emergency situation, the federal government could simply put a temporary ban on pork exports, which would immediately increase the domestic supply of pork for Americans.
AMERICAN WORKERS
Marty Irby, the head of Competitive Markets Action, argues that American farmers suffer due to Smithfield’s Chinese ownership, as the company’s profits no longer flow to Americans.
“We have American-owned companies and American producers that are out there that are struggling,” Irby says. “You’re seeing Smithfield and China now making the profits, and the American family farmer breaking even.”
There’s no question that small farms in America have been on the decline for some time now. The agricultural sector is highly concentrated, with the bulk of the profits going to a handful of large producers, and this trend has worsened over time.
Over the last 30 years, the farmer’s share of each retail dollar spent on their products has fallen by 20%, according to government data, and many operators of small- and medium-sized farms now earn less than $10,000 a year just from their operations, a figure that’s even lower when taking into account household expenses and debt obligations.
Family farmers have been feeling the economic squeeze for decades now, in other words, due to factors that long predate China’s purchase of Smithfield. The number of hog farms in the U.S. has been steadily declining since at least the 1990s, and so have hog farmers’ profits.
SMITHFIELD FOODS, ANIMAL WELFARE AND PROPOSITION 12
While it hasn’t drawn quite as much attention, China’s ownership of Smithfield Foods has also raised concern for the welfare of the animals under the company’s control.
Although America doesn’t have particularly strong animal protection laws, the parameters of meat production in the U.S. have been restrained, albeit to a small degree, by California’s Proposition 12, which banned the extreme confinement of certain livestock (including pigs) and, crucially, prohibits the in-state sale of meat products that were produced using extreme confinement measures, even if raised in other states or countries outside the U.S.
Because California is such an enormous market, that second part of the law has resulted in meat producers across the country modifying their production standards to give pigs and other animals more space.
China, on the other hand, doesn’t have any livestock protections at all. There’s no requirement that animals be stunned, anesthetized or rendered unconscious before they’re slaughtered, let alone given enough room to live comfortably. Pigs raised for meat in China are crammed into enormous high-rise buildings, sometimes referred to as “hog hotels,” in which tens of thousands of pigs are housed at any given time.
Although Smithfield Foods is owned by a Chinese company, it still has to comply with Proposition 12’s regulations, as the meat it produces is sold in California.
That’s where the language of the EATS Act comes into play. If passed or, more likely, if its language is included in the next Farm Bill, the move would overturn Proposition 12, as well as over 1,000 other state and local laws that regulate animal husbandry.
THE REAL ENEMY: PRICE FIXING
Although Smithfield’s Chinese ownership has stirred up a good amount of controversy, there are some other glaring problems with the company that have nothing to do with China, and which have received comparatively little press coverage.
Continued on page 10
PRICE-FIXING
Smithfield Foods has also been accused of, and paid the price for, price-fixing on more than one occasion.
In 2023, the company agreed to pay $75 million in settlements after a group of purchasers accused it of artificially restricting its supply of pork in order to inflate prices. This was unrelated to the $42 million settlement the company paid the year before to restaurants and caterers, who also accused the company of price-fixing to boost its profits.
It’s worth noting that the purchasers in question accused Smithfield of engaging in this market manipulation since 2009 — long before China had anything to do with the company. The terms of the settlement did not require Smithfield to acknowledge any fault, however.
This intersects with the broader issue of monopolization in the meat industry, and the related issue of consolidation, in which large agricultural conglomerates like Smithfield either acquire smaller farms or put them out of business, resulting in less competition and more concentration of wealth and power in the hands of the largest agricultural companies.
THE BOTTOM LINE
As the largest-ever acquisition of an American business by a Chinese business, WH Group’s purchase of Smithfield Foods was undoubtedly a landmark moment in American business and agriculture.
The company’s foreign ownership has made it a lightning rod for criticism. Smithfield has been credibly accused of price-fixing on several occasions and has paid millions and millions of dollars as a result. But most of the company’s practices are standard for an industrial meat conglomerate, regardless of whether it is owned by a Chinese firm or not.
About the Author
Seth Millstein is a writer living in the Bay Area. He has helped launch several early-stage journalism startups, including Bustle and Timeline, and his work has been published in Bustle, Huffington Post, The Daily Dot and elsewhere.
Article courtesy of Sentient Media - https:// sentientmedia.org/
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA
Global public health organization showcases services for Canada’s growing and fast-changing food industry
FCC: FOOD AND BEVERAGE INDUSTRY FACES MIXED OUTLOOK IN 2025
NSF International in Canada recently launched a new website - www.nsfcanada.ca - to give Canada’s growing and complex food and beverage industry easy access to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s global services dedicated to food safety and quality.
Canada’s food and beverage manufacturers face a year of uncertainty, with opportunities tempered by economic challenges, trade disruptions and shifting consumer habits, according to the latest FCC Food and Beverage Report.
FCC Economics forecasts a modest 0.6 per cent increase in food and beverage sales to $168.8 billion in 2025, but a 1.5 per cent decline in sales volume, reflecting ongoing adjustments to beverage manufacturing. Profit margins are expected to improve slightly, though they will remain below pre-2019 levels, with variation across sub-sectors.
Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate these challenges, including certification and auditing, consulting, technical services, training and education, food and label compliance, packaging, and product and process development.
accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging,
NSF International’s Canadian website provides information
brand protection and customer confidence. Certifications
agriculture industry, GFSI certification and management system registration.
“The food and beverage industry faces ongoing pressures from economic challenges and trade disruptions,” said Amanda Norris, senior economist at FCC. “While sales growth is projected to increase slightly, manufacturers will need to carefully navigate rising costs and shifting consumer habits to maintain profitability.”
Consulting: A full-service team approach providing technical resources, expertise and insight for a wide range of food safety and quality services. NSF International provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services from on-site temporary or permanent technical staffing placements, and various types of consulting.
For 2025, FCC Economics forecasts a further decline in beverage sales of -2.5 per cent and -2.6 per cent in volumes. The anticipated decline is driven by a continued shift away from alcoholic beverages, particularly beer, and a slight slowdown in non-alcoholic beverage sales after four years of strong growth.
Technical services: A one-stop solution for food product compliance and formulation, from concept to finished product, including food and label compliance, packaging, product and process development, and shelf-life and product evaluation.
Training and education: Training for the global food and beverage industry across the supply chain as an
While inflation has eased and labour market pressures have relaxed, consumer spending remains uncertain. Per capita consumption of food and non-alcoholic beverages declined for the fourth consecutive year in 2024, down 1.0 per cent from 2023 and 8.0 per cent since 2021, as household budgets remained tight. However, food and non-alcoholic beverages showed signs of recovery near the end of 2024, while alcohol consumption continued to weaken.
“Consumer behavior is shifting, with a growing emphasis on value and products that align with individual preferences,” said Norris. “In this environment, manufacturers who adapt to changing trends and focus on meeting diverse consumer needs will be better positioned to build brand loyalty and strengthen sales.”
Another strong year for dairy product manufacturing sales is expected for 2025. FCC Economics forecasts an 8.3 per cent increase in sales and a 6.0 per cent increase in volumes. Gross margins in the sector are expected to improve in 2025, to the highest level over the past two years, with support from higher sales and declining raw material costs.
Strong price growth has driven double-digit sales increases in the sugar and confectionery sector since 2021, and 2025 is expected to bring another 10 per cent increase in sales, with volumes rising by 6.7 per cent. While higher revenues helped offset rising expenses in 2024, margins remain under pressure from high cocoa prices and potential trade disruptions. With over 90 per cent of confectionery sales tied to exports, particularly to the U.S., the sector faces risks from shifting trade policies, though steady growth in non-U.S. markets suggests diversification opportunities.
In addition, Canada’s aging labour pool will continue to exert pressure on wages, this impact will be less pronounced than in previous years, with the decline in raw material costs helping to offset total expense.
“The food and beverage sector is at a crossroad, with both risks and opportunities ahead. Manufacturers must focus on innovation, strategic market diversification and cost management to stay competitive,” Norris noted.
The annual FCC Food and Beverage Report features insights and analysis on grain and oilseed milling; dairy, meat, sugar and confectionery, bakery and tortilla products; seafood preparation; and fruit, vegetable and specialty foods, as well as soft drinks and alcoholic beverages.
By sharing economic knowledge and forecasts, FCC provides insights and expertise to help those in the business of agriculture and food achieve their goals. For more economic insights and analysis, visit FCC Economics at fcc.ca/Economics.
About FCC
FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization’s employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves.
For more information, visit fcc.ca
CHINA CANCELS U.S. PORK SHIPMENTS
In late April, China announced the cancellation of 12,000 metric tons of United States pork shipments as indicated from a recent U.S. Department of Agriculture (USDA) report.
China is one of the biggest U.S. trading partners and this now comes amid a high-stakes trade standoff between the superpowers.
The move represents the biggest cancellation of pork orders since the COVID-19 pandemic disrupted supply chains and stalled economies around the world, Bloomberg News reported.
China, behind Mexico and Japan, was the U.S.’s thirdbiggest market for pork in 2024, importing some 475,000 metric tons valued at more than $1.1 billion. China is the world’s biggest producer of pork, accounting for nearly 50% of global supply at around 57 million metric tons, according to the USDA. The U.S. was ranked third at 11% with 12 million metric tons.
The Trump administration has shaken the global trading system by imposing sweeping tariffs in April on dozens of countries. China was hit with 145% tariff on Chinese goods coming into the U.S., prompting China to fire back with its own 125% duty.
After the tariff hikes, China inked two agricultural trade agreements with Spain, for pork and cherries, as Beijing looks to strengthen relations with European countries, Reuters reported.
U.S. pork imports are now facing a 172%, the U.S. Meat Export Federation said, according to Bloomberg News. supply.
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OLYMEL PROMOTES CANADIAN PORK WITH NEW PRODUCT LAUNCH
Olymel, Canada's leading pork and poultry processor, has announced the launch of a new line of innovative pork products, available now in the meat aisle of grocery stores across Quebec. Designed to cater to consumers looking for top flavour and quality, the pork products offer a new take on classic beef cuts, for an elevated culinary experience.
As more and more Canadian households embrace home cooking, Olymel continues to deliver innovations that simplify meal preparation while guaranteeing the use of Canadian products.
INNOVATIVE NEW PORK CUTS
Olymel's new pork cuts are a combination of quality, flavour and innovation and include:
• Pork T-bone
• Chimichurri pork flank steak
• Hotel cut pork chops
• Pork capicola steak
• Greek-style pork sirloin skewers
The tasty, tender cuts offer consumers an upscale cooking experience thanks to the high quality of Canadian pork, which is known worldwide for its tenderness, rich flavour, and excellent value.
"These new products are quality cuts that are easy to cook, which fills an untapped niche in the pork industry and meets consumer needs," says Daniel Rivest, Senior Vice-President, Sales and Marketing at Olymel. "We're using existing meat terminology to show that our pork is more than capable of offering a culinary experience that's both affordable and high-end. We're proud to promote Canadian pork in this way."
Olymel is simultaneously launching new fresh poultry products pre-seasoned with consumer-favourite marinades including:
• Mediterranean-style chicken breast
• Teriyaki chicken thighs
• Shish taouk chicken breast skewers
• Piri-Piri chicken drumsticks
RESPONDING TO CURRENT FOOD TRENDS
bit as much as we are as to attain a high level of sustainability. Anyway, we were very surprised when the PEI Cattleman’s Association nominated our farm.
Food trends are changing and Olymel is adapting by offering solutions that meet the new realities of consumers. Today, 50% of Canadians say that protein is a key part of their diet, and 68% plan to cook at home more because of the economy. Olymel's new product offering meets those needs by focusing on quality and making meals easy to prepare.
CMB: And then you were attending the Canadian Beef conference in Calgary and you won.
DF: Yeah! That was a very nice moment for us. But I don’t like to use the word win actually. However, being recognized for our commitment was a real honour. If you want to know
more farms in our neck of the woods nominated next year. And I have to give
"At Olymel, innovation is the cornerstone of our entire value chain," says Yanick Gervais, President and CEO of Olymel. "We never stop investing in research and development to enhance our food offering and anticipate changing market needs. We're proud to be delivering new products that make consumers' lives easier while maintaining our standards of excellence. That's what keeps us at the forefront of the industry."
PROUDLY CANADIAN PRODUCTS
Olymel offers expertly prepared Canadian products that carry on a long tradition of excellence and industry best practices. With almost 35 years in the business, the company continues to make its mark by producing delicious, quality foods that enrich Canada's food supply.
The new product launch coincides with the unveiling of Olymel's new brand image, which is making its debut in stores. The authentic, human, high-impact new branding focuses on the quality, variety and benefits of Olymel's products. True to its roots, the new identity features a distinctive navy blue that symbolizes quality and elegance, while keeping a smaller amount of red and white to ensure recognition of the original branding. The new brand image reflects the company's evolution while reaffirming its commitment to quality and innovation.
ABOUT OLYMEL
Olymel is Canada's leader in the production, processing and distribution of pork and poultry meats. The company has made feeding the world its mission, which it pursues passionately with products of impeccable quality. It employs over 12,000 people and has production and processing facilities in Quebec, Ontario, Alberta, Saskatchewan and New Brunswick. Its annual sales reach $4.5 billion. The company markets its products mainly under the Olymel, Pinty's, La Fernandière, Lafleur and Flamingo brands.
HOW WBC PARIS 2025 TURNED COMPETITION MEAT INTO THOUSANDS OF MEALS
The World Butchers’ Challenge (WBC) has always been about showcasing craftsmanship, passion, and teamwork on the global stage. In 2025, however, they set our sights on something even bigger: making a real, lasting difference beyond the competition floor.
This year, WBC took a significant step forward in its sustainability practices, partnering closely with the host organization, the Confédération Française de la Boucherie (CFBCT), to enhance environmental stewardship throughout the event. For the first time, CFBCT enlisted the expertise of renowned food safety specialist, Stéphanie Chevalier Lopez. Her involvement helped shape a comprehensive sustainability strategy that not only raised standards but also allowed competing teams to actively contribute to more responsible practices.
Among these initiatives was a critical question: What happened to the meat used during the competition?
Rather than allowing such high-quality product to go to waste, WBC and CFBCT teamed up with the respected chef association, Disciples d’Escoffier, and Refugee Food — a culinary organization dedicated to supporting refugees in France through food aid and training.
Together, they created a plan to ensure that the competition meat would find a second life, feeding those most in need.
HOW THE MEAT WAS USED
In total, around two tonnes of meat were delivered to Refugee Food following the competition. Over the course of a week:
• 295 kilograms of meat were prepared and distributed through a variety of programs.
• At Cantine du Refuge, chefs prepared meals for lunch and dinner services, using around 15 kilograms of meat per service and producing approximately 120 meals per day.
• Residents also received trays of marinated, mixed meat at the end of each service, with 50 trays distributed each week.
• Through the Cop'1 Food Aid Program, around 100 additional meal trays were prepared each Thursday.
• At Cantines des Arbustes, another 50 kilograms of meat were cooked and served weekly.
The meat was transformed into a wide range of nourishing dishes, including stews, braised meats, skewers, roasts, shepherd’s pie, and burgers — providing hearty meals to individuals and families who needed it most.
THE PEOPLE BEHIND THE PLATES
The kitchen at Refugee Food was brought to life by a talented group of chefs in training, all of whom have refugee status. These chefs come from Senegal, Mali, Ethiopia, Iran, Guinea, Sudan, and Tibet, and are working to build new careers and lives through the power of food. Under the leadership of Chef Harouna Saw, originally from Senegal, their skills and passion turned the WBC meat into more than just meals — they became a symbol of resilience, dignity, and community.
A BROADER COMMITMENT TO SUSTAINABILITY
The focus on sustainability didn’t stop at food distribution. For the first time, WBC introduced a brandnew award category at the 2025 competition: the AG2R La Mondiale Corporate Social Responsibility Award.
This award celebrates the team that best demonstrates a commitment to sustainability and social responsibility across a number of criteria including:
• Team dynamics and diversity
• Sportsmanship
• Health and safety
• Environmental responsibility
WBC announced that Team France and Team Spain were the inaugural joint winners of this important award, setting a strong example of how excellence in butchery can also mean excellence in leadership, inclusivity, and responsibility.
LOOKING AHEAD
The success of these initiatives marks an important milestone for the World Butchers’ Challenge. It shows that world-class craftsmanship and a global stage can be powerful drivers for positive change — both within the industry and in the wider community.
As they look toward future competitions, our ambition is clear, to continue raising the bar not just for what butchers can achieve with a knife, but for what we can achieve together as a global community.
THERMAL TRACE: WIRELESS TEMPERATURE MONITORING SYSTEM FOR COOKING AND COOLING
ThermalTrace by Exceltec is a temperature monitoring system designed for the food industry. It is a batchbased wireless data acquisition system that monitors recipes from oven to blast. It allows operators to follow the recipe’s temperature at any time throughout the entire cooking cycle.
ThermalTrace monitors cooking recipes in real time. Its unique software not only monitors the entire process, but, unlike similar products, it also predicts cooking completion and warns operators if it anticipates that the cooking cycle won’t be finished on time, preventing the need to re-cook the batch.
Once the cooking cycle is completed, the system produces a complete report that includes a graph, readings, customer information and alarms. ThermalTrace Web-based software allows operators to view data from any device (phone, laptop, tablet, etc.).
LOGGERS GO FROM INSIDE OVEN TO BLAST
ThermalTrace hardware includes wireless data loggers connected to a temperature probe and hooked to meat racks. The loggers communicate with an industrial encased LoRaWAN receiver throughout the process.
LoRaWAN signal enables the information to travel further than WI-FI, and it is also capable of going through steel doors, which is a great advantage in a factory setup. The loggers are rated IP67; meaning they are splash resistant.
The ThermalTrace system helps improve quality control of a batch by monitoring the temperature of the product in real time, and by predicting the completion time for the entire cooking cycle.
ThermalTrace generates all reports automatically upon completion of the recipe, showing all the data and alerts for the batch. If the system predicts the recipe won’t be ready on planned time, it will send alarms to the operator in real time via email and text messages. ThermalTrace real-time recipe monitoring and alarms let you correct and readjust the temperature to prevent re-cooking saving both time and money.
ABOUT EXCELTEC
Since 1996, Exceltec offers its expertise in instrumentation and automation products to provide solutions in process control for the manufacturing industries.
Our mission is to provide the best process control, automation and data acquisition solutions for the manufacturing industry in North and South America, improving productivity and reducing operating costs. We are a Canadian company and we operate mainly in North America.
China's beef consumption is expected to grow in 2025, but at a slower pace than in previous years, according to a recent USDA FAS forecast. While per capita consumption still has room to rise, economic uncertainty and cautious spending are expected to temper overall demand.
The trend toward more affordable food options— known as consumption downgrading—is reshaping the market. Lower-priced beef is gaining ground in the midto-low-end foodservice sector, as well as in the booming prepared foods industry. Ready-to-eat products like beef meatballs, patties and pre-marinated steaks are increasingly made with low-end beef to meet demand from budget-conscious consumers.
Meanwhile, high-end beef remains a small but stable niche, with demand largely confined to fine dining establishments, luxury hotels and premium retailers. Wealthier consumers and younger shoppers looking for healthier and more diverse food options continue to support this segment. To adapt, high-end beef brands are offering smaller, ready-to-cook packages to appeal to home cooks seeking quality and convenience.
Despite this, beef still faces stiff competition from cheaper proteins such as pork and chicken, which may limit its expansion in the convenience food segment.
INCESSANT TRADE DISRUPTIONS IMPACTING THE AGRICULTURE SECTOR
From U.S. and Chinese tariffs to Canada’s retaliatory tariffs on certain U.S. imports, the list of tariffs disrupting our economy continues to grow and Canadian agri-businesses have been on the front line of these trade disruptions
Has your agri-business been impacted by the following recent tariffs:
As agri-businesses have now identified trade uncertainty as their number one challenge (55%) as of April 2025, even ahead of red tape, the Canadian Federation of Independent Business (CFIB) continues its series on trade disruptions and the agriculture industry. In this column we unpack CFIB’s latest survey results to highlight how these disruptions affect agri-businesses— and the role government must play in addressing them.
While much of the public discussion has understandably focused on the tariff battle with the U.S., agribusinesses have also been caught up in the trade dispute with China. As covered in our previous column, in response to Canada’s tariffs on Chinese electric vehicles and steel and aluminum, China imposed retaliatory tariffs on canola oil, canola meal, and peas, as well as certain pork, fish, and seafood.
It didn't take long for the impacts to be felt. CFIB’s latest survey data shows that one in four (25%) agribusinesses were directly impacted by Chinese tariffs.
From canola growers in the West to the seafood industry in the East, or pork producers across the country, key segments of Canada’s agriculture and agrifood sector are being directly targeted by the Chinese tariffs. Consequences include financial losses, shrinking market share, unsold products, and mounting inventory challenges.
While Chinese tariffs are the top trade barrier on our list, another is Canada’s retaliatory tariffs on U.S. goods. According to recent CFIB data, agri-businesses are more impacted by Canadian retaliatory tariffs (47%), than U.S. tariffs on non-CUSMA-compliant Canadian goods (30%). Those tariffs add costs and paper burden on agri-businesses. It is the Canadian importer that needs to pay the tariffs applied by the Canadian government. Where possible, recovering the funds collected through Canadian tariffs has proven frustrating for small business owners as the process is paperworkheavy, time-consuming, and rarely results in prompt reimbursement.
It is also worth noting that the majority of agribusinesses (56%) are already CUSMA-compliantcompared to 44% across all sectors- and are therefore not subject to the current tariffs from the U.S. It is also encouraging to see that 10% of agri-businesses are in the process of becoming CUSMA-compliant. However, this transition often requires significant effort from business owners. Navigating CUSMA rules and requirements isn’t easy. Many business owners do not have the needed expertise, time or resources to go through this process. To better support these efforts, agri-businesses say they would benefit from financial assistance (24%) and clearer guidance and training (20%)
What would be most helpful to support agribusinesses’ CUSMA compliance efforts:
Amid these trade disruptions, agri-businesses have been proactive with almost one in four having already taken steps to mitigate tariff impacts. For example, some are looking at diversifying their trade partners. But this won’t happen overnight, and in the meantime, they need support from the government.
To date, government support measures have included extending the AgriStability compensation rate, increasing the interest-free limit under the Advance Payments Program, and launching Farm Credit Canada’s Trade Disruption Customer Support. Despite these efforts, only 10% of agri-businesses believe that governments have done enough to support affected firms.
During his campaign, newly elected Prime Minister Carney pledged to make the above-mentioned extension of the AgriStability Program permanent. He also committed to increasing funding for AgriMarketing by $30 million, to help agri-businesses access new markets and to open new Agri-Food Offices abroad to support market diversification. While these are promising commitments, it is essential that they are delivered.
CFIB is also calling on the federal government to eliminate interprovincial trade barriers by adopting mutual recognition and increase awareness of available services, such as those offered by the Trade Commissioner Service (TCS) and Export Development Canada (EDC), to help SMEs explore and navigate new markets more effectively. We also recommend that programs, such as tariff rebates or remission initiatives, be accessible and tailored to the needs of small businesses, as well as timely.
Agri-businesses can count on CFIB to hold the new government accountable and ensure it provides the support the sector needs.
Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members (5,200 agri-business members) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
https://www.yesgroup.ca
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.
