Canadian Food Business Fall 2023 by Dovetail Communications

» The science of food and beverage VOLUME 38 • ISSUE 3 • FALL 2023

Optimizing the REDUCING THE INDUSTRY’S CARBON FOOTPRINT

B I O L A B M AG.C O M

food supply chain

EDITOR'S NOTE

PUBLISHER & CEO

Christopher J. Forbes cforbes@dvtail.com

MANAGING EDITOR

Sean Tarry starry@dvtail.com

COPY EDITOR

Mitchell Brown

CONTRIBUTORS

Steven Burton Robert Kowal Gary Newbury

SENIOR ACCOUNT EXECUTIVE

Leesa Nacht lnacht@dvtail.com

ART DIRECTOR

Charlene Everest ceverest@dvtail.com

SECRETARY/ TREASURER

Susan A. Browne

MARKETING MANAGER

Stephanie Wilson swilson@dvtail.com

PRODUCTION MANAGER

Crystal Himes chimes@dvtail.com

CANADIAN FOOD BUSINESS ADVISORY COMMITTEE Marcia English, Associate Professor, St. Francis Xavier University Michael Nickerson, Saskatchewan Research Chair and Professor, University of Saskatchewan Hosahalli Ramaswamy, Professor, McGill University Amanda Wright, Association Professor, University of Guelph Canadian Food and Business is published 4 times per year by Jesmar Communications Inc.,

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STRENGTHENING

CANADA’S FOOD SUPPLY

s issues related to food safety and security continue to increase in significance and importance with respect to the current and future health and wellbeing of Canadians, the resilience of our food supply and the ramifications of a less-than-optimized chain are beginning to garner greater attention and elicit harsher critique among the general public. And, given the critical nature of the role that the country’s supply ecosystem plays in ensuring the availability of the food that Canadians eat every day, it comes as no surprise. With this in mind, within this issue of Canadian Food Business, we explore some of the challenges faced by the Canadian food and beverage industries in moving product across the country, while highlighting advancements that are helping to create greater efficiencies and a more reliable and predictable supply. Supply chain guru, Gary Newbury, contributes this issue’s Guest Editorial, identifying the most pressing challenges threatening the efficiency and growth of the Canadian food supply and those operating within Canada’s food and beverage industries, while highlighting the ways in which these challenges can be addressed and overcome. Supply chain challenges result in a number of different outcomes, including product shortages and delays. However, none can be considered more significant than its impact on inflation and the global cost of food. Robert Kowal provides Canadian Food Business with a special contribution that analyzes the influence of inflation on consumer choices, behaviours, and ramifications for the food industry in Canada. In an effort to gain a strong perspective on the current and future state of the Canadian food supply chain, we sit down with the Food Professor, Dr. Sylvain Charlebois. The industry veteran shares his ideas concerning the food and beverage industries biggest challenges, as well as some of the inherent opportunities, highlighting the ways in which companies’ collective determination to decarbonize their supply chains is resulting in a bit of a shift in strategy and operations. There’s no doubting the critical nature of an optimized supply chain for those operating within the food and beverage industries. And, we hope that you and your teams find our exploration of the topic helpful in navigating current challenges while inspiring further food innovation, growth and success.

Sean Tarry EDITOR

email: biond@publicationpartners.com

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inside

FEATURES

THE IMPACT OF FOOD INFLATION

on consumer choices, behaviours, and outcomes for the food industry in Canada

DECARBONIZING CANADA’S FOOD SUPPLY CHAIN

Goals to reduce carbon footprint from operations are influencing a shift in supply chain strategy among Canada’s food and beverage industries

3 METRICS TO 36 SCALE UP YOUR FOOD MANUFACTURING BUSINESS

standard GUEST EDITORIAL 30 NEWS BITES 32 FOODWARE 42

GUEST EDITORIAL

Pathway for enhancing Canada’s food supply chain sustainability By Gary Newbury

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he Canadian food supply chain plays a pivotal role in ensuring a steady and reliable flow of staple and seasonal food products from “farm to fork” for Canadians. As a global producer, our ability to be a reliable trading partner is firmly wedded to seasonal flows and predictable supply. Any disturbance creates reputational risk. Our food supply network is a complex system with a multiplicity of activities and links that came under significant pressure during pandemic restrictions; it continues to face an array of challenges impeding efficiency, sustainability, and ability to adapt to changing economic, environmental, and societal circumstances, and evolving customer tastes. In order to make a significant change in food’s supply chain performance, we really need to look at the full network and stakeholders beyond the perfunctory view of what we buy (forecasting, sourcing and transmission of requirements), how we transport it (often across vast distances and with different modes, including sea, rail, road and sometimes air) and hand it off to the next link in the chain. There are many challenges facing the industry including transportation constraints (costs and temporal capacity), increasing climate change events (floods, fires et al.), food safety, cybersecurity, loss prevention, inflationary pressures, consumer shifts (changing priorities and reputational risks), technological shifts, the need for process repeatability and protection of our country’s reputation. To re-engineer the efficiency of today’s supply chain network several critical challenges require urgent attention:

Labour shortage and local production capacity constraints and adaptability

Labour shortages emerged as a formidable challenge during the pandemic that were exacerbated by demographic shifts and changing workplace dynamics. The agricultural and food processing sectors remain heavily invested in manual labour. This makes operations highly vulnerable to ongoing changes in rural populations, migrant worker availability and the perspective of younger, highly qualified workers. Local production capacity constraints further compound such issues. The reliance on imported food products makes the supply chain susceptible to disruptions caused by global events such as trade disputes and cross border transportation challenges (alongside our winter weather challenges). If the industry was to focus on enhancing domestic agriculture production and local processing facilities, it is possible for Canada’s food security to become much more resilient.

Oligopolistic market structure

The Canadian food marketplace is dominated by a handful of large, powerful corporations and a less-than-stridentCompetition Bureau. This has led to an uneven playing field favouring the big brand processors and retailers. This market structure stifles competition and product innovation, limits consumer choices and hinders market access for small producers and new retail entrants (e.g., Aldi), as suggested by the Competition Bureau Canada Report (June 2023). This market structure can drive pricing power disparities which can adversely affect both producers and consumers.

Lack of collaboration and innovation across food supply chains

A shortfall in either of these areas pose significant barriers to our adaptability and resilience. Collaboration across farmers, processors, distributors, retailers and research institutions are crucial for addressing waste (more than 40 per cent of production ends in landfill - a serious industrial level challenge, as well as an opportunity) and inefficiencies, as well as driving innovation in process, technology and/or product portfolio.

GUEST EDITORIAL

1. Invest in local labour pools and focus on “local to market” production • Encourage youth engagement in agriculture and the food supply chain through educational programs, internships and mentorship initiatives – make the “farm-to-fork” supply chain enticing. • Develop immigration policies which facilitate entry of skilled agricultural labour to ensure workforce sustainability and adaptability. • Support and invest in technological hubs focused on automation, AI and precision farming to provide resilience and lowered cost structures. • Invest in R&D to optimise local production techniques, such as vertical farming and hydroponics, as well as crop yield improvements. 2. Marketplace structure • Review, strengthen and enforce anti-trust regulations to create a more competitive market to shift to a more balanced equilibrium. • Provide support and incentives for start ups and SMB food production and processing businesses to compete effectively with the big food dominant brands. Canada needs more domestic processing capacity, wholesalers and more independent food retailers to achieve higher levels of economies. • Facilitate sharing of intermediate pooling in storage and distribution resources so big and small producers can experience similar per unit costs for their distribution activities. • Create marketplaces and direct-to-consumer/drop ship platforms to enable direct connections between

producers and consumers locally, regionally, and nationally to improve competition and choice. 3. Collaboration and innovation • Create industry-wide platforms for knowledge and idea exchange, and collaborative problem solving, similar to bodies other countries have in which technology businesses and retailers solve industry challenges collaboratively, rather than “going it alone” missing the opportunity to share learnings and perspectives. • Develop innovation hubs within regions which focus on production, processing and distribution performance improvements holistically. • Support initiatives which bring together stakeholders from across the food supply chain to ideate and collaborate on performance improvement, capacity flexibility and resilience to aid policy makers in making informed investments in domestic food supply chain innovation. • Create robust relationships between academia, government agencies and operators within the food supply chain to drive innovation at industry, activity and operational level. The Canadian food supply chain is facing a complex set of challenges which can not be addressed in a linear/simplistic manner. The drive to sustainability and resilience marches on, and time is being burned. Addressing imbalances across labour pools, enhancing local production capacities (scaling) and flexibilities (optionalities), tackling marketplace concentration and driving innovation, are the strategic steps to building a more robust, reliable and adaptable food supply chain. Looking holistically at the end-to-end food supply chain, the industry is likely to be able to see significant opportunities as it drives for increased consumer choice, flexibility in the face of disruption, and long-term profitability. However, time is against the industry. It is important to recognize that much more progress is needed to be made over the next two years by industry leaders, government (through regulatory reviews) and consumer advocates.

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The absence of meaningful collaboration (i.e., supply chain partners working together on eliminating waste, inefficiencies and driving continuous innovation) results in missed opportunities for greater productivity, consumer choice and long-term profitability for the industry. To address these fundamental complexities, a multifaceted approach is essential:

NEWS BITES

Enabling cutting-edge agricultural research In an ambitious move, the Ontario provincial government recently announced that it’s investing a whopping $343 million over five years in order to advance state-of-the-art agricultural research meant to serve the province’s farmers. The investment comes as part of a renewed collaboration between the University of Guelph and the Agricultural Research Institute of Ontario, and the start of an

agreement between the two entities and the Ontario AgriFood Innovation Alliance. The funding will be used to help drive innovation around research that focuses on food safety and animal welfare and to help support the development of a highly skilled workforce in the province in order to facilitate further economic growth opportunities within the Ontario agri-food sector.

Boost for Alberta agriculture sector

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The future for the development of breakthrough cellular agriculture technology in the province of Alberta has never been brighter with the announcement by CULT Food Science Corp. of the formation of the brand-new Institute of Cellular Agriculture. The unveiling is part of a collaboration between CULT Food Science Corp., the University of Alberta and New Harvest. As part of its commitment to accelerate the development of cellular agriculture technologies to advance the future of food, CULT Food Science Corp. will provide space and support for new startups, researchers, students, entrepreneurs, and product development at Agri-Food Discovery Place in Edmonton. In addition, the innovative strategic partnership will provide infrastructure, support, and funding opportunities for innovators and researchers, and will serve as a platform for new ventures and intellectual property development focused on creating the future of food through cellular agriculture. And, says Lejjy Gafour, CEO of CULT Food Science, it’s also a partnership that could help pave the way for the future of the cellular agriculture industry. "We are at the horizon of an explosion of new ideas and ventures that will accelerate the global cellular agriculture industry. We are excited to be able to accelerate the launch and development of new ventures and ideas from individual founders, to supporting classic enterprises who want to adopt cellular agriculture as part of their strategy with our support."

As part of its commitment to accelerate the development of cellular agriculture technologies to advance the future of food, CULT Food Science Corp. will provide space and support for new startups, researchers, students, entrepreneurs, and product development at Agri-Food Discovery Place in Edmonton

NEWS BITES

Advancing functional ingredient development A partnership between Willow Biosciences and Kalsec was recently announced, representing the early stages of the companies’ functional ingredient development program. The pair just completed phase one of the project and are now ready to undergo a rigorous process toward commercialization – a phase of the project which includes additional research and development and scale-up work. It's a partnership that certainly presents promise given that Kalsec focusses its efforts on providing taste and sensory, natural food protection, natural colours and advanced hops to the food and beverage industries, while Willow Biosciences specializes in the development of bio-based processes for the production of ingredients, including those for consumer care, food and beverage, and pharmaceuticals. And it’s one that each company hopes will yield innovation and success going forward.

Strengthening B.C.’s food supply The British Columbia provincial government has announced a landmark investment in the future of the province’s food security, making $200 million available in order to help ensure that British Columbians have better access to an increased supply of affordable, local food. It’s an investment that some suggest is coming at a muchneeded time. And, according to B.C. Premier David Elby, it’s one that needs to be pointed and focussed in order for it to have the greatest impact possible. “Food security in British Columbia requires an available, affordable and uninterrupted supply of nutritious food. At the same time, we need targeted, effective programs that support the people and communities most impacted by rising inflation, climate events and supply chain shocks.” The investment, which comes from the Ministry of Agriculture and Food, will go toward new and enhanced programs to strengthen the province’s food supply chain and expand local food production from producers to processors and from packers to retailers; helping Indigenous communities concerning the availability and cost of food, particularly in remote and rural communities; and help agricultural producers and food processors grow their businesses.

Although the plant-based food category hasn’t necessarily capitalized on the momentum that it’s generated in spurts over the course of the past 60 years or so, it certainly hasn’t slowed with respect to innovation occurring within the space. And, as a result, there remains growth concerning the number of people adopting a plant-based diet in place of pork and/or seafood. In fact, according to a recent survey conducted by Chefs Plate, when considering an average week, Canadians tend to eat vegetarian protein alternatives (7%) more than pork (5%) and seafood (4%). It’s data that’s reflective of evolving tastes and eating habits among Canadians, and an indicator that adoption of vegetarianism and flexitarian diets across the country will continue, fueling plant-based proteins as a possible national economic driver with the potential to become a $25 billion industry by 2035.

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Continued plant-based innovation

FEATURE

THE

IMPACT OF

FOOD INFLATION

ON CONSUMER CHOICES, BEHAVIOURS, AND OUTCOMES FOR THE FOOD INDUSTRY IN CANADA By Robert Kowal

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ood inflation is an ongoing concern for consumers and businesses alike, and its impact on consumer choices, behaviours, and outcomes within the food industry cannot be understated. Canadians have been through a sustained period of food inflation, reaching 41-year highs in 2022. According to Stats Canada, February 2023 marked the seventh consecutive month when the food inflation rate rose more than 10 per cent year-over-year. As of July 2023, it remained stubbornly high at 9.1 per cent, exceeding the national inflation rate of approximately 3 per cent. As a result, Canadians spend more of their hard-earned dollars on food and have less disposable income to spend on other things. The hardest hit are low-income Canadians and seniors on fixed incomes. Families with lower incomes may struggle to afford healthy food options, forcing them to opt for less nutritious items and impacting their overall health. Food insecurity strains social services, as evidenced by increased Food Bank use. In March 2022, Food Banks Canada reported over 1.4 million visits monthly, of which 33.1 per cent are

children. Some reports indicate that 23 per cent of Canadians are eating less, with 1 in 5 skipping meals altogether.

Shifts in consumer choices

As the cost of food increases, consumers adjust their purchasing decisions and prioritize certain types of products over others. Consumers may opt for more affordable alternatives or seek out discounted or sale items. They may also reduce the quantity of higher-priced items they purchase or replace them with less expensive substitutes. Consequently, consumer choices may shift towards lower-cost products, generic brands, or products that offer better value for money. This trend can lead to changes in market demand and potentially impact the sales and profitability of certain food industry segments.

Changes in consumer behaviour

Canadians struggling to stretch their food budgets may engage in more price-conscious shopping habits, such as comparing prices, using coupons, price matching, or

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Canadians struggling to stretch their food budgets may engage in more priceconscious shopping habits, such as comparing prices, using coupons, price matching, or participating in loyalty programs. These behaviours can drive increased competition among food retailers.

Economic outcomes for the food industry

The inflationary impact on the food industry goes beyond changes in consumer choices and behaviours. Food producers and manufacturers must grapple with higher input costs, such as raw materials, energy, transportation, and labour. These cost pressures may necessitate price adjustments as a means to maintain profitability, leading to potential consumer resistance and competitive pressures. Moreover, food manufacturers and grocers are challenged to balance price increases while maintaining customer loyalty. Passing on increased costs to consumers may seem obvious, but it can lead to reduced sales volume if consumers opt for lower-cost alternatives. Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, says the single biggest reason for food inflation remaining so high is that retailers have been gradually passing along wholesale price increases from their suppliers. "They can't just pass along those wholesale increases all at once. There's a limit to what consumers will pay," said Charlebois. "They're already selling less food right now." Therefore, manufacturers may need to explore strategies such as cost optimization, supplier negotiations, or value-added offerings to mitigate the impact of food inflation.

Government and policy implications

High food inflation rates can also prompt government intervention and policy considerations. Policymakers may focus on implementing measures to address the underlying causes of food inflation, such as improving agricultural productivity, enhancing supply chain efficiency, changing tax structures, or promoting greater competition. Social assistance programs, such as food subsidies, access to food banks, or assistance for vulnerable populations, may be expanded to alleviate the burden on low-income households. For example, on July 5th of this year, 11 million low- and moderate-income Canadians and families received their new, one-time Grocery Rebate. This targeted "inflation relief" for Canadians provided "eligible couples with two children up to an extra $467; single Canadians without children up to an extra $234; and seniors with an extra $225, on average" (In my opinion, the rebate mentioned above will provide little relief for those in need). These interventions can have far-reaching implications for the food industry, influencing market dynamics, regulations, and competitive landscapes.

Looking ahead

Food inflation in Canada, which remains stubbornly high compared to national inflation rates, has significant implications for consumer choices, behaviours, and outcomes within the food industry. It prompts shifts in consumer choices, leading to a demand for more affordable alternatives and greater price consciousness. Consumer behaviours change as individuals adjust their meal planning and shopping habits to mitigate the impact of rising food prices. Economic outcomes for the food industry are influenced by higher input costs and the need to balance profitability with consumer expectations. Lastly, government intervention and policies may play a role in addressing the challenges posed by food inflation. Understanding and adapting to these dynamics is essential for businesses in the food industry to navigate the changing landscape and meet the evolving needs of consumers.

C A N A D I A N F O O D B U S I N E S S.C O M

participating in loyalty programs. These behaviours can drive increased competition among food retailers and incentivize them to offer more attractive pricing and promotions to retain and attract customers. Higher food prices can also lead to meal planning and preparation changes. Consumers may opt for more home-cooked meals instead of dining out, increasing the demand for grocery store products while negatively impacting the food service industry. Similarly, consumers may shift towards buying foods in bulk or seeking cheaper protein and fresh produce sources. With the recent rise in purchases of local foods and visits to farmers' markets, people are bypassing the grocers altogether. These behavioural changes can significantly influence the food industry, shaping demand for specific products and altering supply chain dynamics.

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3 METRICS TO

SCALE UP YOUR FOOD MANUFACTURING BUSINESS By Steve Burton

ccording to a recent McKinsey report, about 80 per cent of startups that successfully launch products fail to see them through to full scale-up. “For many startups,” its report elaborates, “the challenge is no longer about securing capital—it’s about learning how to restructure themselves as fast as their products or organizations can evolve.” Scaling up sustainably depends on your ability to make data-informed decisions. Quantity is not the same as quality; understanding big data’s strategic impact and management tactics for food businesses is integral to implementing analytics into operations. The ability to focus on what matters most for your success is key.

What are KPIs? Finding the right metrics for profitability

Metrics, or more specifically, Key Performance Indicators (KPIs) are well-defined measurements that help you monitor, analyze, and optimize operations. The challenge is that there is no one-size-fits-all solution. Food and beverage processors, especially, have unique needs compared to other manufacturing sectors; KPIs are not just metrics for financial success in the food business, they are also necessary for regulatory compliance (for food safety and traceability) and GFSI certifications demanded by customers. The shift in industry standards towards big data is driving the adoption of automation technologies that can manage data and generate actionable insights. Real-time metrics and dashboards enable data-informed decisions that improve sales and profitability. The same McKinsey report found that 49 per cent of high-performing consumer companies had “completely integrated digital into their operating model for key areas, nearly twice the number of low performers that have. The key differentiator of high-performing companies is that digital activities are embedded in functions and geographies and not siloed in an IT organization.” A data-driven approach focused on key metrics will allow you to make better decisions for your business. So, what are some of the metrics that you should be monitoring?

One essential metric that all manufacturers need to track is Fulfillment Rate (or order fill rate) – the percentage of shipments you can send to customers compared to their orders. For example, your customer orders 100 units and you ship all 100, then your fulfillment rate is 100 per cent. If you stockout and deliver 80 units, your fulfillment rate drops to 80 per cent. Essentially, this metric reflects your ability to meet customer demand. At first glance, you might think that you should aim for 100 per cent. While some companies do achieve rates as high as 99 per cent, there is a good reason that the average is about 80 to 90 per cent. A very high fulfillment

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#1: Know your optimal fulfillment rate

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CANADIAN FOOD BUSINESS VO L U M E 3 8, I S S U E 3 • 2 0 2 3

In the US food retail industry alone, lost sales due to out of stock or unsaleable items are valued at $15-20 billion every year. Finding the right balance is specific to every industry, sector, and even business.

rate indicates that you’re storing excess inventory, which eats into your operating profit margins because inventory and storage costs money. Any waste due to expired products flushes profits down the toilet. On the other hand, a lower fulfillment rate indicates that demand is outpacing your supply. That gap, which is really a crack in your market that makes you vulnerable to competitors, signals an opportunity to capitalize on customer interest. In the US food retail industry alone, lost sales due to out of stock or unsaleable items are valued at $15-20 billion every year. Finding the right balance is specific to every industry, sector, and even business. Calculating your fulfillment rate is not as simple as logging customer orders and comparing them to shipments. When sales processes an order, they need insight into available inventory (what is in stock or already allocated to other customers) and planned production in order to assess whether or not orders can be filled. In the food industry, manufacturers need to consider additional factors such as shelf life, supplier lead times, and the length of the production processes. Logistics needs to be factored in, too. Unexpected weather events might prevent a delivery, or a customer might reject a short shipment. You need to capture end results accurately and compare them to the original order. For food manufacturers, calculating fulfillment rates requires real-time data from across your organization. Access to real-time data allows you to communicate and set customer expectations, anticipate problems, and identify real strategies to improve profitability. Ultimately, this metric maximizes order value – and so does the next one: cost per unit.

#2: Leverage actual costing data in real-time

High-margin products are the bread and butter of any successful operation. Can you pull data on unit costs for all your products right now and assess their profit margins? If you could, you will find that some products make you a lot more money than others. And what if the cost of an ingredient just skyrocketed? Can you reassess profitability immediately to adjust pricing accordingly? How long would it take for you to understand the impact on your bottom line? The growing pains of scaling up your business requires the agility to react quickly to changes outside of your control. Whether there’s a supply chain disruption or a market opportunity, you need real-time visibility into production costs to maximize profitability. In my experience, the more products a company makes, the lower their margins. Our client with the highest profit margins has only 11 products. Developing one stellar product is tough, let alone trying to optimize dozens or hundreds. Real-time data is invaluable, but analysis can be difficult. With the right KPIs and the right technology, you can pin down this challenging metric to drive your pricing decisions. Unit cost is calculated with three cost categories (raw materials, labour,

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and overhead), usually working from “standard” costing models updated periodically by accountants. Even if a more progressive company manages to update standard costing every quarter, that may still lag behind today’s market. It is best to collect actual costing on products at the lot code level, so you need a unified system to connect data from different sources within your organization (especially purchasing, logistics, and production) to gain a complete insight into your costs. Imagine having the ability to check actual production costs against your models at any time – especially when launching a new product. For small businesses looking to scale, there isn’t much room for error when it comes to product optimization.

Smart growth requires metrics, insights, and action

#3: Optimize your operations with equipment performance metrics

About Steven Burton Founder and CEO of Icicle Technologies Inc., Steven Burton is the architect of the award-winning food production management system, Icicle ERP. Through the development of advanced food safety technology based on over a decade of sophisticated software development expertise, Burton has taken Icicle beyond document management and food safety to offer a complete solution for smart automation, improving quality standards, production efficiency, and expanding growth opportunities for all types of food businesses. This article is adapted from Steve’s webinar presentation “Maximizing Margins for Food Production,” hosted by BC Food & Beverage in October 2022.

Poor maintenance costs you by lowering profitability and impeding growth. Overall Equipment Effectiveness (OEE) is a collection of metrics manufacturers use to quantify equipment production performance. It can be evaluated at the individual machine or line level. For example, a high-speed production line resulting in 25 per cent discarded or reworked product is a huge problem. An OEE score is calculated by multiplying machine availability x performance x quality. These can be broken down further: • machine availability = run time v planned production time • performance = (total count/run time)/ideal run rate • quality = good count v units started.

Scaling up with healthy profit margins relies upon access to strategic information and smart data: not just lifeless numbers, but living, real-time context that you can access and use to make excellent business decisions. A low fulfillment rate could signal a problem with equipment maintenance causing production downtime. This could indicate the need to invest in higher capacity equipment or to adjust your maintenance schedule. Well-defined metrics transformed into insights can be transformed into real action. The next question is, how can you use these data-driven metrics to accomplish your goals?

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Whether there’s a supply chain disruption or a market opportunity, you need real-time visibility into production costs to maximize profitability.

OEE for world-class manufacturers is 85 per cent, whereas most manufacturers score between 40-60 per cent. The challenge is capturing the data you need to make improvements. Newer devices have IoT capabilities that allow them to connect to other devices and receive/transmit data. This allows you to collect data automatically for real-time visibility. A constant stream of real-time data allows you to gauge equipment performance against nominal functioning so you can catch problems early. With your information all in one place, you can track downtime and trend data to monitor improvement – and leverage maintenance management tools to transform your KPI insights into operational efficiencies.

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DECARBONIZING CANADA’S

FOOD SUPPLY CHAIN Goals to reduce carbon footprint from operations are influencing a shift in supply chain strategy among Canada’s food and beverage industries By Sean Tarry

CANADIAN FOOD BUSINESS VO L U M E 3 8, I S S U E 3 • 2 0 2 3

he global supply chain has certainly come under a considerable amount of scrutiny over the course of the past two or three years following a raft of port closures and delays, rising costs and fees, and a general lack of reliability and predictability. It’s forcing most companies operating in just about every industry and sector around the world to assess the state of their current supply chains and make the necessary tweaks in order to reduce costs and find greater efficiencies. However, according to the Food Professor, Dr. Sylvain Charlebois, although these tweaks are being made, a growing desire among those operating within the food and beverage industries to improve their environmental footprint is increasingly driving many of their supply chain strategies. “The Canadian food supply chain in Canada, generally speaking, is performing much better than it was this time last year with far less significant delays,” he asserts. “And, as improvements are made, many within the industry are starting to place quite a bit of focus on optimizing and decarbonizing everything about their operations. Both aspects are being valued by most companies as equally important to the other. Optimizing, or building efficiencies, is very much

about planning the use of automation and artificial intelligence. In terms of managing the procurement of product and ingredients, the just-in-time and just-in-case models are frequently being improved and enhanced. And, many are also starting to leverage near-shoring more, all in an effort to decarbonize their supply chain, redefining the operations of companies all over the world.”

Middle mile opportunities

Charlebois goes on to explain that given regulatory legislation and associated penalties that exist in different regions and jurisdictions across the country, businesses are putting a concerted effort toward minimizing and, where possible, altogether eliminating the impact that their operations have on the environment. And, of course, their transportation and logistics needs represent a massive portion of their carbon footprint, making it something of low-hanging environmental sustainability fruit. However, explains the Food Professor, there are a number of significant challenges that are currently preventing greater progress and reduction of emissions.

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with food, and the ways they acquire it, has changed dramatically over the past few years, and will continue to change and evolve moving forward

“When you look at the domestic Canadian market, the middle mile is the piece of the supply chain that can be tightened up and improved most dramatically,” he suggests. “People have been saying for a very long time that the most expensive mile is the last mile. And that may be true. But the middle mile, which is a critical one, is where the greatest improvements can be made from an environmental point-of-view as well as the perspective of reducing costs. Food businesses will increase their competitive advantage significantly by investing in the activity that takes place between the warehouse and retail store, electrifying it, and making warehouses leaner from an environmental perspective. Because when you’re operating in a country as vast as Canada where there really isn’t any population density, you’ve got to make sure that the middle mile is managed as thoughtfully and strategically as possible.”

The promise of technology

Depending on the type of food or beverage company, and the nature and structure of their supply chains, explains Charlebois, there are a range of practices and initiatives that

Moving forward

Not only can data be harnessed internally to find the efficiencies that businesses are looking for, Charlebois says that it can, and should, be shared with trusted partners within their supply chains, explaining that a combination of retailer, manufacturer and distributor data can help all parties involved improve their footprints and operational performance. However, he adds that looking ahead over the course of the next 12 to 18 months or so, the biggest challenge for any business operating within the Canadian food or beverage industries will be in finding ways to use the data that they have at their disposal to better service the needs of Canadians across the country. “The data that businesses have access to now is more precise, and therefore more powerful, than it was three years ago. It’s going to be interesting to see how companies within the Canadian food ecosystem leverage it to improve the way they serve people in urban centres as opposed to those in suburban and rural communities. The relationship that Canadians have with food, and the ways they acquire it, has changed dramatically over the past few years, and will continue to change and evolve moving forward. Those that understand this and can figure out how to most efficiently service these different types of areas, while maintaining reductions in their carbon footprints, will separate themselves from their competitors.”

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The relationship that Canadians have

can be developed and instituted in order to make some of these environmental and financial gains. However, he suggests that the one tool that can and should be leverage by all when looking to create a leaner middle mile for their supply chains, is that of technology. “Technology, data most specifically, is incredibly important to businesses today when it comes to managing their supply chains,” he says. “And it continues to increase in relevance. If you can utilize artificial intelligence to better forecast and predict consumers’ behaviour and food choices based on an innumerable amount of variables, you can better tool stores, warehouses and overall operations for greater efficiency. It’s becoming imperative for businesses to leverage these tools and this type of technology in order to remain in-the-know with respect to what the consumer is doing and, more importantly, what they’re going to do next. Those that are able to take advantage of the tools that exist today to get ahead of their customers will also get ahead of their competition.”

FOOD WARE

Chilling out Expand your self-serve offering, selection of condiments, and array of other chilled foods with the Nemco Cold Condiment Chiller. The industry’s most compact, NSF unit, the Chiller features thermoelectric technology that effectively holds at required temperatures, without the drawbacks of conventional compressor units. The design of the chiller ensures that the unit is compact enough to adapt to virtually any counter space. www.nemcofoodequip.com

It’s in the bag

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The Wyma Vertical Bin and Bag Filler is the perfect choice for the gentle handling of produce when filling bins or bags. Once bins or bags are full, produce feed stops until a replacement empty bin or bag is detected. On the dual-head model, the feed conveyor will reverse and fill the second bin or bag, allowing for continuous filling. www.wymasolutions.com

Palace of the brine The Inject-O-Mat 16 Brine Injector is constructed with a stainless-steel brine tank, centrifugal brine pump, variable speed motor drive, variable speed needle head that operates up to 50 strokes per minute, and an easy to read and operate control panel. Ideal for use with fish, seafood, bacon, ham, beef, and poultry applications. www.mpbs.com

Mixing it up Agitating the situation The Alfa Laval ALB bottom-mounted agitator is suitable for atmospheric and pressurized tanks and comes in a range of sizes. The modular design and choice of size ensures an agitator fit-for-purpose so you won’t have to invest more than needed and can look forward to optimal power consumption. Meets requirements for use in food, dairy and beverage applications. www.alfalaval.com

Designed for use with different size beakers and vessels up to around three gallons, the Ross High Sheer Mixer features interchangeable stators that provide unlimited flexibility to adopt to a variety of product formulations. In addition, this versatile tool is offered with a range of interchangeable attachments including sawtooth dispersers, propeller blades, micro and inline rotor/stators. www.mixers.com

Who We Are Founded in 1951, the Canadian Institute of Food Science and Technology (CIFST) is the national association for food science professionals. Its membership is comprised of hundreds of individuals in industry, government and academia who are committed to advancing food science and technology. The purpose of CIFST is to advocate and promote the quality, safety and wholesomeness of the food supply, to provide a professional development hub, to contribute to food policy and to support food science professionals at all stages of their careers.

About Food Science Food Science is a multi-disciplinary field of research and education focused on understanding the physical, chemical and biological properties of foods. The field spans discovery-type research & development to the applied sciences, and includes aspects of food chemistry, food microbiology & safety, processing & engineering, enzymology, nanotechnology, sensory science and the nutrition sciences. Advances and drivers in the area of Food Science are also highly interconnected with changes in consumer trends, marketing, authenticity & traceability, food policy and regulatory affairs.

Member Benefits The Canadian Institute of Food Science and Technology (CIFST) represents a network of food science professionals from within the food and beverage sector across Canada with active Sections in British Columbia, Manitoba, Ontario and Quebec.

The association for food science professionals

Some of the benefits of becoming a member of CIFST are as follows:

More Info

Discounted member rates for all of our national and local events FREE registration for our Knowledge Bites webinars and special access to the post-event webinar recordings FREE digital quarterly issues and newsletters of Canadian Food Business Magazine to your inbox. Members also receive discounted ad rates. FREE weekly e-newsletter Directions, highlighting industry news from the sector Food for Thought, CIFST’s exclusive, members-only e-newsletter highlighting the Institute’s activities; FREE job listings and resume postings on our job board Access to our membership directory Volunteer opportunities on local and national committees $200 off the Certified Food Scientist application fee (the same discount that IFT members receive)

1-844-755-6679 cifst@cifst.ca 3228 South Service Road, Suite 109, Burlington, ON www.cifst.ca

FOOD WARE

Now we’re cooking The Spooner Industries Tunnel Oven provides a design suitable for a wide range of uses. Custom designed to meet specific process requirements using direct or indirect heating. Featuring high energy efficiency, the Tunnel Oven is a high-performance piece of equipment that ensures even air distribution, and, ease of access for cleaning and maintenance results in low maintenance requirements. www.directindustry.com

Approval of seal In knead of mixing

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IKA high performance HKD and HKS horizontal kneading machines are twin-bowl kneading machines with horizontally arranged kneading blades, able to process the production of low viscosity adhesives to extremely high viscosity mixtures. The distinctive feature of these kneading machines lies in their kneading elements, which enable them to be adapted to a broad spectrum of applications. www.ikaprocess.com

Sifting through The Prater Rotary Sifter, or Rota-Sieve®, is designed for sieving operations in which bulk raw materials, blends, and finished products need scalping or sifting to remove foreign materials or particles such as plastics, strings, or insects. The simple design and lightweight parts of the Rota-Sieve make standard inspections an easy and straightforward process. www.praterindustries.com

The Ishida TSC-RVS In-line Seal Checker accurately detects leaks, ensuring gentle bag handling, and user-friendly operation that delivers superior quality control on high-speed packaging lines up to 150 bags per minute. The Seal Checker ensures that only the highest quality packs reach your retailers with state-of-theart high-precision testing of air leaks and thickness variations in sealed packages. www.heatandcontrol.com

Into the mix The Alfa Laval Hybrid Powder Mixer is a dual-stage inline powder induction and dispersion system that quickly and efficiently disperses and mixes powders into a liquid stream. Versatile, cost-effective and easy to use, this inline high-shear mixer produces homogeneous products at high dry matter concentrations and high yields. www.alfalaval.ca

MOMENT IN TIME

Canadian Institute of Food Science and Technology

WELCOMES DR. YVONNE YUAN AS ITS 2023/2024 PRESIDENT

r. Yvonne Yuan, Associate Professor from the School of Nutrition at Toronto Metropolitan University in Toronto, Ontario, has been appointed as the President of the Canadian Institute of Food Science and Technology (CIFST), with her term officially commencing on July 20, 2023. Dr. Yuan’s teaching and research at TMU are focused on food chemistry related to -functional foods and chronic disease risk factors and health. Her research program is focused on the antioxidant and biological activities of plant foods, specifically edible marine macroalgae (seaweeds) from Western and Atlantic Canada. She was also part of the TMU team working with the National Institute of Nutrition in Vietnam to scale up smallscale food processing plants to promote food security for women subsistence farmers and children in rural Vietnam. Dr. Yuan has been a part of the CIFST Board of Directors since 2019 and is a past chair of the Nutrition Interest Division for the CIFST. As well, she has served as the newsletter contributor for the School of Nutrition for the Canadian Nutrition Society. She also served as the faculty advisor for the TMU Student Branch of the Canadian Association of Foodservice Professionals. Dr. Yuan has received several awards in past years recognizing her professional service, research contributions and teaching. These include: • Champion of Education & Training, Educator Award, the Canadian Association of Foodservice Professionals, 2008. • Institute Award, the Canadian Institute of Food Science and Technology, 2009. • Faculty Service Award, the Faculty of Community Services, TMU, 2010-2011. • Faculty Scholarly, Research and Creative (SRC) Achievement Award, Faculty of Community Services, TMU, 2011-2012. • Dean’s Teaching Award, Faculty of Community Services, TMU, 2012-2013. • Sue Williams Excellence in Teaching Award, Honorable Mention, Faculty of Community Services, TMU, 20192020 and 2020-2021.

A member of CIFST since 1989, Dr. Yuan is excited about the upcoming year as the 67th president of the professional institute, with representation from 8 provinces across Canada. Having been a student member herself at UBC's Department of Food Science, she feels honoured to now lead the organization. Dr. Yuan acknowledges the significant contributions of past leaders and volunteers, including Louis Ayotte and Rob Kowal, in navigating CIFST through the challenges posed by the COVID-19 pandemic. She recognizes the pivotal role played by volunteers at both the Section and National levels, as well as the support of Canadian Food Summit volunteers, colleges, and universities. Dr. Yuan expresses gratitude and appreciation for the dedication of student members, particularly those involved in competitions and committees. She is confident that these students represent the future of the food industry in Canada and the institute itself. Looking ahead, Dr. Yuan anticipates an exciting year as CIFST awaits the outcome of the AAFC Food Cluster application, which would support innovation and sustainability in the food industry. The new strategic plan is focused on professional development programming, revenue building, and pursuing partnerships with media and other professional bodies that share common goals. Acknowledging the growth and success of CIFST, Dr. Yuan recognizes the support and guidance provided by Essentient Association Management and its staff. She looks forward to continuing to work with the company in the coming year. Lastly, the CIFST President encourages all members to find a sense of community, representation, and support within the Institute. She invites members to get involved and share ideas for events or activities, emphasizing that this is how her own journey began. For more information about the Canadian Institute of Food Science and Technology, contact: Heidi Loney, Executive Director – 437-351-4334 or heidi@cifst.ca

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Courtesy of Canadian Institute of Food Science and Technology