THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
October 2021
HOW CANADIAN RANCHERS ARE WRITING THE RULEBOOK ON SUSTAINABILITY – AND WINNING Maple Leaf Foods Increases Capacity Through Bacon Centre of Excellence Walmart Canada Commits to Purchase Sustainable Beef Olymel Plant Launches New Pre-packaging Activities Recovery and Rebirth for Restaurants Metro Claims Ontario’s Finest Butcher Title CFIB’s Agriculture Business Barometer meatbusinesspro.com
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MEAT BUSINESS 2017 MEATBUSINESSPRO OctoberJuly/August 2021 2 CANADIAN
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Maple Leaf Foods Increases Capacity Through Bacon Centre of Excellence How Canadian Ranchers are Writing the Rulebook on Sustainability – and Winning Walmart Canada Commits to Purchase Beef Sourced from Certified Sustainable Farms and Ranches Olymel Plant Launches New Pre-packaging Activities
Recovery and Rebirth for Restaurants in a PostPandemic World USDA's Vaccine Candidate Successful in Blocking Spread of ASFV
Metro Claims Ontario’s Finest Butcher Title
CFIB’s Agriculture Business Barometer
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THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
October 2021 Volume 21 Number 10 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Trevor Bacque, Virginia Labbie, Scott Taylor, Cam Patterson, Jack Roberts CREATIVE DIRECTOR Patrick Cairns
Meat Business Pro is published 12 times a year by We Communications West Inc.
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MAPLE LEAF FOODS INCREASES CAPACITY THROUGH BACON CENTRE OF EXCELLENCE Maple Leaf Foods Inc. has announced that it has completed construction of a $182 million expansion to its Winnipeg prepared meats plant, significantly increasing its bacon production capacity with new in-house capacity for pre-cooked, microwaveable bacon. This investment in new state-of-the-art manufacturing equipment and cultivated in-house expertise represents a Bacon Centre of Excellence within Maple Leaf and positions the company to meet the growing customer and consumer demand in the pre-cooked bacon market and drive innovation. The project is one of the many investments the Company has been making as it continues to unlock value in its growing prepared meats business. Final commissioning of the 73,000 square-foot expansion at the Lagimodiere Boulevard site in Winnipeg is expected to be completed in the near term, with commercial production ramping up over the course of the coming months. By building this capacity in-house, this plant will become the Company’s primary pre-cooked bacon production facility. As part of the expansion, the Company is in the process of adding approximately 350 new positions at the plant, bringing total plant employment to over 1,900 people. “We are very excited to see this project come to life,” said Michael H McCain, President and CEO. “Our vision to become the most sustainable protein company on earth applies even to our very best convenience food, which includes delicious pre-cooked bacon. This state-of-the-art facility will deliver sustainably made cooked bacon products from meat humanely raised and without antibiotics, made by a carbon neutral company. We are really proud of this.” Maple Leaf Foods is a leading Canadian bacon producer with eight brands in the Canadian market, and almost half of Canadian households have purchased a Maple Leaf Foods bacon product in 2021.
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HOW CANADIAN RANCHERS ARE WRITING THE RULEBOOK ON SUSTAINABILITY – AND WINNING By Trevor Bacque Thousands of Canadian ranchers proudly produce DON’T LET THE PAPERWORK SCARE YOU beef, and while it’s enjoyed at a restaurant, over a weeknight barbecue or Sunday dinner, more consumers are curious about its production. Specifically, whether The audit took one full day, and he needed to present it was sustainable and the impact it had on the records and fill out various forms for the rest of the environment. joining process. Throughout a given year, Schellenberg says there is one-and-a-half days worth of work. He The Canadian Roundtable for Sustainable Beef, an adds, though, that if a producer is on top of their industry-led group, has designed a standard, readily paperwork, it’s not burdensome at all. available framework for all producers on what is considered sustainable production practices. But how difficult is sustainability to tap into, and what does it take to stay in it? Is it ultimately good for business? Are producers profiting, or is it just a feelgood label?
COY SCHELLENBERG, BEECHY, SASK. Coy Schellenberg, wife Laura-Lie and their four kids operate Perrin Ranching, a cow-calf operation in southwest Saskatchewan. They’ve been a part of a sustainable beef program for multiple years and are glad to see a framework created to reward producers for work that the overwhelming majority are already doing.
He says the paperwork should not be a deterrent and points out a sustainability program may compel a producer to record information that can help them stay on top of things.
SUSTAINABILITY AS A BUSINESS DECISION
“It was a movement to acknowledge the good practices and stewardship that already exists within the beef sector,” he says.
A savvy businessman, Schellenberg says he joined because it was both the right thing to do and there were small financial paybacks. Currently, the cheques he receives offset the program’s costs, but not by much.
For Schellenberg, the overall cost to join was less than $1,000, and he explains that the initial audit is the most difficult part of the process.
“For us, it’s break-even at this point,” he says, but he has hopes for the future. “We need consumers to buy in and realize we are sustainable as producers.”
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through the entire value chain at approved facilities for his sustainability program. The challenge comes in when someone in the supply chain doesn’t participate in the program. Suppose an animal goes through a certified system for 90% of its life but is finished at a non-participating packer. In that case, he receives no payment and can’t control where feedlots sell finished animals. He says the hardest part was getting over the psychological side and defensiveness that producers can have.
OVERALL, HE IS GLAD TO BE PART OF THE SUSTAINABILITY PROGRAM.
“There’s a false perception that it’s going to be burdensome on operations, but it’s not nearly as burdensome as you think, and I see returned value, as well as better recordkeeping,” he says.
“Producers are looking for ways to set themselves apart,” says Schellenberg. “This is really affordable, from both an economic and time perspective. There are lots of ways we can set ourselves apart. Producers should use as many as they can. This is very conducive to farms and ranches across Canada.”
ROOM TO GROW
JILL HARVIE, OLDS, ALTA.
For Schellenberg to earn money on his cows, anywhere from $15 to $20 extra per head, the animal must go
Jill and Cole Harvie have been involved in sustainable beef for more than a decade and have no intention to
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stop. At Harvie Ranch, the two maintain a 250-head Hereford and Charolais herd. For Harvie, she is proud to be part of a sustainability program that puts not only her ranch but the collective ranges of Canada on display for the world to see.
positioned we can be.”
CHALLENGE TO BE BETTER
Harvie believes part of the business case to engage in a sustainability program is that it helps producers bring their operation up to its best possible standard. After joining the program, her family focused on finishing important watershed developments on their property and believes that such programs help bring out the best in producers. Beyond that, she’s been privy to meetings with big names in the corporate beef world - ones she doesn’t think she would have otherwise been able to, all thanks to the program. That’s been good for her professional development and business opportunities.
CANADIAN LEADERSHIP IN SUSTAINABILITY “Canada has shown incredible leadership globally to make sure we are measuring what we’re doing,” Harvie says. “If there’s a question about how effective we are doing something, we have a baseline and can show continuous improvement.” Harvie explains that getting into sustainability programs for most Canadian ranchers is not too demanding, as most producers already do these practices. Like Schellenberg, Harvie says time spent within a sustainability program relates more to record keeping than anything else. “Luckily, much of that information is already being collected by ranchers in one way, shape or form. Now it’s just a matter of linking it to the way your sustainability program wants to receive it,” she says.
“Fifteen years ago, you’d never have a chance to be in the same room as the owners of main steakhouses in Canada, or McDonald’s,” she says. “But now, especially thanks to the Canadian Roundtable for Sustainable Beef, it’s been something commonplace.”
BEN YOUNGE, SHAWVILLE, QC At Willow Hollow Farms, Ben Younge has always had a sustainable operation with his 230 cows – he just didn’t have the paperwork to prove it. That all changed about four years ago when he partnered with an Americanbased sustainability program that offered him great premiums per head. “We found that for us to be competitive — we can’t compete with bigger feed yards — we needed to find a bit of a niche market,” he explains. “I started looking into special programs, and we realized that we were already doing the protocols to be certified.”
SUSTAINABILITY FOR EXPORTS Sustainability programs are widely seen worldwide as the way of the future, especially in high-value markets such as the European Union, where consumer demands are high. “Certain markets are looking for the pristineness of Canada — our fresh water, healthy cattle, friendly people, even cowboys — it’s not just an image, but it’s backed up by data and information,” Harvie says. “The more transparent we can be, the more well8
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STAND OUT FROM THE HERD
feel like I should be able to produce the best, consistent meat possible,” says Younge. “I like the challenge of trying to get to the top.”
says that his experience was straightforward NSF INTERNATIONALYounge FOCUSES because of his recordkeeping ON and farm setup but recognizes that it may be different at another operation. CANADIAN FOOD INDUSTRY WITH NEW The pros and cons of joining a program must be weighed carefully. WEBSITE FOR SERVICES IN CANADA Global public health organization showcases Buoyed the program’s success that celebrated foodbyindustry practices already in play at his farm, the economic NSF International in Canada recently launched a new returns were a critical link in joining. website - www.nsfcanada.ca - to give Canada’s growing and complex food and beverage industry easy access “Because of thepublic size ofhealth our operation, it’sexpertise the onlyand way to the global organization’s services in Canada. The website combines information we can survive, to try and receive more per pound theaverage depth, experience and capabilities thefinancial NSF thanonthe market price,” he says ofofthe International Canadian office with access to NSF return on producing certified sustainable beef. “It was a International’s global services dedicated to food safety no-brainer.” and quality.
“Each operation has to evaluate the conditions to be in services for programs,” Canada’s he growing one of these says. “Ifand theyfast-changing must change their whole operation around to qualify, there are costs there, too. But with our program, we met all criteria.” accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, BOTTOM LINE regulations (including FSMA), food science, food packaging, food microbiology and ISO standards. Training modalities include eLearning, on-site, customized open enrolment. Sustainable beef programs are easier and to join than you
Additionally, the website includes information about may think. Many of the required practices are often management system registrations for the food, automotive, already being carried out by the average Canadian environmental, information security, medical devices, rancher. After an initial audit, producers agree upkeep Evolving regulations across countries and increasing aerospace and chemical industries, as well as for Ontario Not long after, he joined a second sustainability is minimal, and the opportunity for greater payouts and complexities associated with a globalized food supply drinking water programs. program, this one Canadian-based. The third-generation exists. network present challenges for NSF International clients in premiums Visit the new Canadian website at www.nsfcanada.ca to review the food rancher quickly found that this program required an Canada and around the world. The new Canadian website safety services capabilities video, find a list of Canadian food experts, learn on-farm which described as companies “just a farm tour,” Forabout upcoming events and global releases, submit a question offersaudit, expertise andhe services to help navigate more information visit news AgExpert https://www. YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1at 2014-05-16 1:20:17 PMor read an FAQ. challenges, including certification and these showing paperwork he already had.and auditing, agexpert.ca consulting, technical services, training and education, food and label compliance, packaging, and product and RECOGNIZING process development. SUSTAINABILITY
NSF International’s Canadian website provides information on the following services:
“We didn’t even have to change much,” he says. & auditing: Third-party food “WeCertification just had to do a bit of paperwork. It’s safety nice toaudits be and certifications, are integral components of recognized for these which sustainable practices.”
supplier selection and regulatory compliance. Accurate audits are the first step toward successful verification The of annual time commitment is “hardly anything,” and a company’s food safety system, providing improved he says most producers likely already would qualify – brand protection and customer confidence. Certifications it’s just matter applying a program. and aaudits areof available for to animal and produce in the agriculture industry, GFSI certification and management registration. Withsystem a financial commitment that is only in the
hundreds of dollars, it worksteam wellapproach for Younge, Consulting: A full-service providing technicalthe resources, expertise and insight a wide range considering premiums he’s received tofor date when of food safety and quality services. NSF International he sells. provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and Next, he plans to investigate selling into high-end insight to protect the brand, technical support services restaurants in Quebec, believing his production from on-site temporary or permanent technical staffing practices would be welcome by patrons hoping for placements, and various types of consulting.
quality food on a night out. Technical services: A one-stop solution for food product compliance and formulation, from concept to finished product,PRODUCING including food THE and label compliance, BEST STEAK packaging, product and process development, and shelf-life and product evaluation.
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September/October 2017 MEAT BUSINESS 23 9 October 2021CANADIAN MEATBUSINESSPRO
WALMART CANADA COMMITS TO PURCHASE BEEF SOURCED FROM CERTIFIED SUSTAINABLE FARMS AND RANCHES Walmart Canada has announced it will purchase the largest known quantity of beef from certified sustainable Canadian farms and ranches ever sourced by a single retailer.
A milestone moment, this commitment contributes to advancing beef sustainability in Canada – and it's only the start. The amount of beef Walmart Canada sources from CRSB Certified sustainable farms and ranches will continue to increase each year. "Leadership from organizations like Walmart inspires change and supports the Canadian beef sector's continuous improvement goals," explains Anne Wasko, Chair of the CRSB and rancher from Eastend, SK. "The CRSB is honoured to partner with Walmart Canada on this ambitious commitment on its journey towards a more sustainable future."
Beef purchased through this commitment will support the environmental, social and economic sustainability of Canadian farmers and ranchers whose operations are certified through a third-party audited system, in accordance with sustainability standards set by the Canadian Roundtable for Sustainable Beef (CRSB).
Committing to sustainable sourcing at this unprecedented level sets a new threshold in the industry for what is possible and reaffirms the company's partnership with the CRSB. As a valued partner, Walmart Canada continues to help expand the CRSB's program in Canada, advocating for continuous improvement in industry standards and engaging in open dialogue with industry and supply chain partners.
This is the largest public commitment made by a single retailer to date: 1.5 million pounds of beef sourced from CRSB Certified sustainable farms and ranches will be purchased by Walmart Canada over the next calendar year.
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Walmart Canada sources 100% of its fresh beef in Canada, supporting Canadian ranchers and farmers. These hardworking Canadians are integral in the shared journey towards sustainability and contribute to managing and preserving 35 million acres of native grassland in Canada. In the coming months, customer-facing messaging will be developed to share this milestone commitment to sustainable beef sourcing. For more information, visit the Canadian Roundtable for Sustainable Beef (CRSB) at crsb.ca
"We're immensely proud of what this commitment signifies to the industry and the impact it will have for our farmers and ranchers, customers, suppliers and partners," said Horacio Barbeito, President and CEO, Walmart Canada. "We're making massive strides towards advancing sustainability within the Canadian beef industry, propelled by our commitment to being a regenerative company and made possible by strong partnerships with the CRSB and our suppliers."
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OLYMEL PLANT LAUNCHES NEW PRE-PACKAGING ACTIVITIES After a year of work and an investment of over $30 million, Olymel’s poultry slaughterhouse and cutting plant in St-Damase in Montérégie Est has opened its new pre-packaging facilities. This major work, which enabled the plant to add additional cutting, deboning and tray packing lines, as well as install state-of-theart equipment, was done without impacting normal operations, which is a remarkable feat. The Olymel plant in St-Damase now has the capacity to serve customers requiring high volumes of prepackaged poultry products. Incorporating the prepacking lines, which were previously outsourced, into the St-Damase facility will significantly reduce product handling and transportation as well as provide tighter control over quality, order processing and logistics. This project's completion, delivered on time, led to the creation of 80 new jobs, bringing the number of employees working at this facility to over 500. "Completing this project will enable Olymel to respond more efficiently and quickly to the requirements of customers looking for quality and large volumes of specific poultry products to better serve consumers. Olymel has an undeniable competitive advantage in controlling its processing activities from A to Z and its quality right up until delivery. It's also what our customers are looking for. I want to thank the teams that contributed to completing this growth-generating project and acknowledge the valuable partnership from the United Food and Commercial Workers, UFCW Local 1991P, which represents the St-Damase employees. This investment of nearly $32 million, in addition to those made over the past few years also in the order of around $30 million and all the new jobs it created, will have a positive effect on St-Damase's and the greater St-Hyacinthe region's economy," says Réjean Nadeau, President and CEO of Olymel. 12
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CAPACITY AND DIVERSIFICATION The work done over the past year at Olymel's StDamase plant included adding a new automated cutting line, three new automated deboning lines, four tray packing lines, a new shipping area and a refrigerated warehouse, and reorganizing the production areas. The plant's employee facilities and the cafeteria were also expanded. A total of 35,000 sq. ft. were added to the plant's surface area, bringing it up to a total of 150,000 sq. ft. Using CO2 anaesthesia equipment, the weekly slaughter capacity at the St-Damase plant is approximately 1 million birds. For its new pre-packed tray operations, the St-Damase plant is organizing its operations in one shift and will prepare air-cooled poultry products, such as breasts, drumsticks, wings, deboned thighs, and bone-in skin-on thighs, intended for private customers. The plant also supplies Olymel's further processing plants with fresh products and has an annual production volume of 75 million kilos.
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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. Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families. They are also aware that a lot of false information is out there and as such, are open to scientific facts that can correct their misconceptions.
liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach. Iron found in vegetables is harder to absorb than the iron found in meat as it is attached to fibre which inhibits its absorption.
RECOVERY AND REBIRTH FOR RESTAURANTS 2. Eat Meat for a Healthier Brain! IN A POST-PANDEMIC WORLD Being deficient in the micronutrients found in meat have been
Though the COVID-19 pandemic sent shockwaves This provides an opportunity for retail meat departments to implement an instore ‘Healthy industry, Meat Facts’ nutritional through Canada’s foodservice inflicting a campaign to set the record straight and convince their devastating impact across the entire foodservice customers that meat and poultry are actually good for one’s landscape, the industry is finally seeing signs of positive health and that they should increase rather than decrease change. their purchases of it. The campaign outlined below can have a direct impact on sales:
The of Restaurants Canada’s 2021 the Foodservice Startrelease by displaying instore posters promoting nutritional Facts 2022, be theinnovative, industry iseye expected not value shows, of meat.come They should catchingto and only rebound, but grow more thanany originally expected, be designed to specifically contradict meat myths. The comments should be literature based quoting research as consumers areall showing a willingness to return to papers or MDs for maximum effect. Various posters should restaurant dining. be made - each with a brief but powerful message covering one theme.
Canada’s most trusted foodservice industry research Posters can convey following healthy fact and insights guide, the Foodservice Facts ismeat an annual messages: report presenting the latest foodservice statistics, 1. Let’sand IRON out the Truth Meat! trends forecasts, alongon with a detailed analysis “You would need to eat a massive amount of spinach to of how they will affect foodservice operators. The equal (the iron content) in a steak,” says Christopher Golden, authoritative annual research at report is aUniversity valuableintool an ecologist and epidemiologist Harvard for foodservice operators and chains by to nature.com plan, investinand Cambridge, Massachusetts. (As quoted the forecast theirfoodactivities the year ahead. article ‘Brain clever for eating’.) For a woman to receive her recommended daily intake of 18
In 2020, foodservice industry mgApril of iron, sheCanada’s would need just 300 grams of cooked bovine experienced its lowest level of sales in over two
linked with low IQ, autism, depression and dementia says Dr. Charlotte Neumann, a paediatrician at the University of decades. While sales were expected to improve in California, as quoted in the article ‘Brain food- clever eating’.
2021, the third wave of the pandemic caused another
Zinc is crucial for learning and memory. Vitamin B12 shutdown, with the elimination of in-person dining preserves the sheaths that protect nerves.
affecting restaurants, foodservice operators and
3. Boost Your Immunity with Meat! suppliers across Canada. Due to its antioxidant powers, zinc is involved in creating antibodies to fight free radicals that increase our risk for However, despite the setbacks and challenges, the chronic diseases.
industry has been resilient, innovating, embracing new
4. Power Your Muscle Growth with Meat! technologies, and helps exploring revenue The protein in meat build new and repair bodystreams. tissues. It
will take some time to bounce back, but expectations
Muscles are made of protein. That is why athletes who are for 2022muscle show strength a promising return pre-pandemic building increase theirtomeat consumption. numbers: The protein and zinc found in meat are important for muscle growth and repair.
• As of September 2021, almost 70% of Canadians (12 5. Meat is the Complete Protein! and older) areallfully vaccinated Meat contains of the nine essential amino acids that your body cannot make by itself. Say ‘hello’ to histidine, leucine, isoleucine, lycine, methionine, phenylalanine, tryptophan, • As a result of high vaccination rates, annual threonine, and valine. That is why meat is called a complete commercial foodservice sales are expected to increase protein. to $63.9 billion, which is higher than the previous
6. Eat Meat of for$61.1 a Healthy Heart! prediction billion. However, the industry is Meat contains lots of the B vitamins needed for the tempering optimism with vaccine passports coming into production of hormones, red blood cells and for the proper effect alongside fourth wave of infection. functioning of youranervous system. Say ‘hello’ to niacin, folic acid, thiamine, biotin, panthothenic • Thevitamin projection of 2022 looks evenare more promising, as acid, B12 and vitamin B6. They all found in meat.
overall foodservice sales are expected to grow to nearly
The line that ‘the best defense is a good offense’ does not $80 billion, 3.8% higher than pre-pandemic levels only apply to sports. It also applies to countering negative meat health myths. Implementing an instore ‘Healthy Meat Facts’ nutritional campaign to set the record straight on meat and poultry. It is a good way to go on the offensive by using education your customers and increasing your sales.. Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of meat and poultry. He can be reached at RCons@CCpacking.com.
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“While the economic outlook has significantly Canada DF: improved, I don’t think Restaurants being on the island has really impacted us negatively remains cautious when it comes to theone the other. says We’veChris traveled a lot, timing ofway theorrecovery,” Elliott, met a lot of other farmers and livestock Senior Economist at Restaurants Canada. producers in other parts of Canada, and “We see our industry like a puzzle, trying to we all seem to have the same issues figure outand what piece fits where, and figuring same concerns. out how to fill in any gaps and holes in the CMB: I understand that your farm industry. While our patios may be filling up was the first in Atlantic Canada to be and we can see that small pinhole of light at involved in the TESA program. the end of the tunnel, it is not the time to DF: Yes, I think we were the first farm relax or fall into old habits. We have survived east of Ontario as far as I understand. the stormI’m and now it’s time to learn from not sure why the eastern it. It’s time to cautiously, yethave optimistically, associations wouldn’t previously finish thenominated puzzle. ” anybody because there are many farms here on PEI doing every
bit asSHORTAGES, much as we areINCREASED as to attain a LABOUR high level HIGHER of sustainability. Anyway, COSTS, DEBTS we were very surprised when the PEI Association nominated our COVID-19Cattleman’s brought about a slew of new farm.
challenges and hardships for the entire CMB: And then you wereof attending the industry across Canada. Some the biggest Canadian Beef conference in Calgary hurdles to overcome as a result of the and you won. pandemic include labour shortages, higher Yeah!costs, That was a veryasnice moment food andDF: overall as well higher for us. But I don’t like to use the debts. Hundreds of thousands of employees word win actually. However, being across the restaurant industry have been recognized for our commitment was laid off asa areal result of restaurant honour. If you want toshutdowns, know and morethe than 12,000 truth, it was afoodservice pretty humbling establishments permanently their experience. As I said to closing CBC when they phoned me after the conference, doors since the start of the pandemic.I was just floored, really couldn’t believe it. CMB: So now that you have been recognized, do you think that will draw more attention and garner more nominations out of Atlantic Canada going forward? DF: Absolutely. We’ve gotten a lot of good press highlighting the island cattle industry. I’m positive you’ll see more farms in our neck of the woods nominated next year. And I have to give the Canadian Cattleman’s Association recognition for choosing a farm from Prince Edward Island. We are small players in the national beef industry and I think it was a real credit to their organization to recognize us. They treated all the nominees royally and it was a real class act. It was a wonderful experience.
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works and what didn’t and finding new ways to adapt to challenges brought about by the pandemic. The evaluation of their businesses allowed them to focus on their businesses, seeing what works and what didn’t and finding new ways to adapt to challenges brought about by the pandemic. The evaluation of their businesses allowed them to focus on creating the best experience for customers when in-person dining restarted - something that customers are very eager to return to.
CUSTOMERS ARE READY TO RETURN TO IN-PERSON DINING Labour shortages, already an industry-wide problem pre-pandemic, will continue as the hospitality sector begins to recover and open back up. Workers have had to find other employment opportunities in other industries after losing their jobs in hospitality. The pandemic is forcing the industry to re-evaluate how they recruit, pay and retain their employees, especially as restaurant owners are struggling to fill their workforce—only 39% of restaurant operators expecting to return to pre-pandemic staffing levels in 2022 and 20% expecting to return in 2023. The pandemic also managed to bring up price hikes in the foodservice industry and led to restaurants accumulating mounds of debt. Operational costs, food and menu prices and labour costs will continue to rise as the industry heads into the final months of 2021 and well into 2022. Many restaurants are already operating at a loss due to government shutdowns, and their debts seem to continue to grow as costs rise:
Customers are craving the opportunity to return to table-service restaurants and in-person dining to experience the moments and memories they were able to have pre-pandemic. 94% of Canadians say that restaurants are an important part of their communities and they want to continue to support them. That said, takeout and delivery will continue to be offered by restaurants, especially those that had to pivot quickly to offer the service during the pandemic in order to meet new demands. But a considerable number of customers have shared they will begin to order delivery and takeout less once the pandemic subsides, as the desire to get together and socialize continues to grow.
• 47% of foodservice operators said they would increase their menu prices 4% over the next 12 months • In a 2021 survey, 81% of independent restaurants had taken on new debt due to the pandemic** • Six out of 10 table-service restaurants are operating at a loss as of July 2021 As the industry emerges from the pandemic, paying off debt and lowering operating cost remain the top two priorities among foodservice businesses. Despite the many negative effects as a result of the pandemic not all industry changes are considered bad. COVID-19 gave restaurants the opportunity to step back and truly focus on their businesses, seeing what
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Certain groups are more eager to return to in-person dining than others. Trends show delivery rates will remain the same post-pandemic as during the pandemic. However, differences in delivery can be seen across age groups:
ADDITIONAL NOTEWORTHY SURVEY HIGHLIGHTS
• 50% of 18-34 year olds surveyed will order delivery less post-pandemic as compared to during the pandemic, being the most eager group to return to inperson dining • 35-54 year olds and 55+ were similarly split, with about the same percentage of people preferring to order delivery less after the pandemic as those who will order about the same amount of delivery as during the pandemic. “It’s clear Canadians want to return to the way things were before coronavirus hit, and indoor and in-person dining at restaurants are part of this transition to post-pandemic life,” adds Todd Barcaly, President of Restaurants Canada. “We realize the value that restaurants bring to Canadians and their communities, and we need to be ready to welcome them back with open arms. Restaurants Canada is working with all levels of government to help the industry with the transition from survival to revival, so they can welcome Canadian diners back with open arms. Overall, 89% of Canadians are looking forward to going out to a restaurant with friends and family once the pandemic ends. With growing vaccination rates, Canadians continue to feel more comfortable about returning to in-person dining, and restaurants should continue to implement measures to enhance the customer experience and make them feel safe.
• Commercial foodservice sales in Canada are predicted to grow from $13.7 billion in the first quarter of 2021 to $20.7 billion by the last quarter of 2022 (adjusted seasonally) • 97% of Canadians believe restaurants provide a vital source of employment • Full-service restaurants are forecast to experience the strongest sales increase, rising, from a projected $25.6 billion in 2021 to $35.2 billion forecasted in 2022 • Canada’s tourism revenues are projected not to return to pre-pandemic levels until 2025 - foodservice spending by international tourists dropped 96% from April to December 2020; domestic tourist spending dropped 32% in the same period of time
The full report is available to all Restaurants Canada members through the Member Portal or for purchase online. To access the report, please call 1-800-387-5649
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USDA'S VACCINE CANDIDATE SUCCESSFUL IN BLOCKING SPREAD OF ASFV losses to the swine industry, there have not been any outbreaks in the United States. The virus is unable to transmit from pigs to humans. Newly published USDA research, as highlighted in the journal Transboundary and Emerging Diseases, shows that ARS scientists have developed a vaccine candidate with the ability to be commercially produced while still maintaining its vaccine efficacy against Asian ASFV strains when tested in both European and Asian breeds of swine. The findings also show that a commercial partner can replicate experimental level results and prevent the spread of the virus. The U.S. Department of Agriculture's (USDA) Agricultural Research Service (ARS) has announced that one of its African Swine Fever Virus (ASFV) vaccine candidates has been shown to prevent and effectively protect both European and Asian bred swine against the current circulating Asian strain of the virus.
Previous studies were done under laboratory conditions only in European bred pigs using an ASFV isolate, or sample, from the initial outbreak.
The majority of swine used in the global food supply are produced in Asia, where the virus has been causing outbreaks and devastating losses to the swine industry. African Swine Fever (ASF) was originally detected in 2007 in the Republic of Georgia and is known to cause virulent, deadly disease outbreaks in wild and domesticated swine. Since the original outbreak, ASF has had a widespread and lethal impact on swine herds in various countries in Eastern Europe and throughout Asia. Although the virus is causing profound economic
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"This is a major step for science and agriculture," said ARS researcher Manuel Borca. "We are working carefully to see our vaccine candidate commercialized through the joint efforts of the U.S. government, and our commercial partner, the Navetco National Veterinary Joint Stock Company." To date, ARS has successfully engineered and patented five ASF experimental vaccines and has fully executed seven licenses with pharmaceutical companies to develop the vaccines. ARS continues to evaluate additional commercial partners to develop these vaccines. Veterinary Joint Stock Company."
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
To date, ARS has successfully engineered and patented "We are excited that our team's research has five ASF experimental vaccines and has fully executed resulted in promising vaccine results that are able to seven licenses with pharmaceutical companies to be repeated on a commercial level, in different pig develop the vaccines. ARS continues to evaluate Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility breeds, and by using a recent ASFV isolate," said ARS additional commercial partners to develop these By Amy Reid, Peace Arch News researcher Douglas Gladue. "This signals that the live vaccines. so as to not emit odours. And while there is an operational A federally licensed beef processing facility is in the works attenuated vaccine candidate could play an important 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. role in controlling the ongoing outbreak threatening only process a limited number of cattle. “There’s a new building coming forward, a new abattoir, I the global porkthink supply," said ARS researcher Douglas Chris Les is general manager of Meadow Valley Meats, that’s the French pronunciation of slaughterhouse,” Gladue. the company behind the project. Meadow Valley Meats is said Councillor Mike Starchuk. “So Surrey will have a newer facility with a better capacity so people will have the ability to not have to ship an animal to Alberta to have The onset of immunity was approximately it processed. The revealed applications in have gone through the andsecond Food Sustainability Advisory Committee.” one-third of theAgricultural swine by week post-
seeking a Canadian Food Inspection Agency license for the proposed abattoir, to become a federally registered meat establishment and expand the operation. This would allow the meat products to be transported beyond B.C.’s boundaries.
Thefull facility is proposed on property within the vaccination, with protection in aall25-acre swine achieved “Our focus is on trying to bring a more efficient, sustainable Agricultural Land Reserve at 5175 184th St. The planned by the fourth week. A commercial vaccine for ASFV will local product to the market, realizing we can do that now 30,000-square foot abattoir in Cloverdale would process up be an importantto part of controlling ASFV in outbreak in a very limited sense,” said Les. “I caution people when 100 head of cattle per day. talking to them and they say, ‘What a big plant, that’s going areas. Researchers will tocontinue tothat determine According a city report, would makethe it larger than to go allow you to go mainstream.’ Well, yes, if you look any other processing facility in B.C.. But it would still be safety and efficacy of the vaccine under commercial in the context of B.C., but this is still a very niche plant small by industry standards, compared to the largest meat production conditions and are closely working with Paul Metro, Toronto tookand home and Gentile we’ll serve of a niche industry for producers for thethe title of processing plants in Alberta that process 3,000 heads of market. It’s certainly not going to be a monstrosity of a plant their commercial partner Ontario’s Finest Butcher (OFBC) in a recent competition cattle per day. in Vietnam. The proposed facility would be fully enclosed and designed
but it’ll be a big upgrade from the site currently.”
Continued on page 32
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METRO CLAIMS ONTARIO’S FINEST BUTCHER TITLE Paul Gentile of Metro, Toronto took home the title of Ontario’s Finest Butcher (OFBC) in a recent competition hosted by Meat & Poultry Ontario (MPO). Gentile is a first timer to the competition who battled his way through 16 of Ontario’s best butchers in an elimination round held on September 13th, and was one of 4 finalists who moved on to the final round on September 28th. “On behalf of the entire Metro Ontario team, I would like to congratulate Paul on his incredible knife skills, and winning the prestigious title of Ontario’s Finest Butcher,” says Joe Fusco, Senior Vice President, Metro Ontario. The theme for this year’s final ‘black box’ round was ‘Game of Bones’ and Gentile, along with fellow finalists, had 30 minutes to transform a whole turkey, beef rib, and a shoulder of lamb into several mouth-watering, display-ready items. The finalists were judged on their level of skill, creativity and consumer-appeal. The three judges’ combined scores determined it was Gentile who would take home the title.
“The Ontario’s Finest Butcher Competition shines a spotlight on an amazing career within the province’s agriculture-food sector,” said Lisa Thompson, Minister of Agriculture, Food and Rural Affairs. “I want to thank Meat and Poultry Ontario for showcasing the passion and skill butchers have and for being champions of local food and the meat industry in our province. The showcase of skill and dedication are attributes that translate into valuing locally grown food and the preparation that goes into quality Ontario products.” In addition to donning the official champion’s black jacket, Gentile took home a $2,300 prize package, including a Minimax Big Green Egg™ Ultimate Kit, Mercer Culinary Butcher Knife set, a JVG custom forged butcher knife courtesy of Dolan Foods, a YETI gift package, and a cutting board resurfacing service from Ecoboard.
“The skills demonstrated are just a sample of the talented butchers that work tirelessly to put local food on the plates of Ontarians every day.” says Franco Naccarato, MPO’s Executive Director. The competition was attended by the Honourable Lisa Thompson, Ontario’s Minister of Food, Agriculture and Rural Affairs, who brought opening remarks and shared her support for the art of butchering, and the many career pathways available in food and agriculture.
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https://www.cfib.ca
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CFIB’S AGRICULTURE BUSINESS BAROMETER®: AGRICULTURAL OUTLOOK EXPERIENCES SHARP DROP IN SEPTEMBER FEDERAL GOVERNMENT POLICIES NEEDED TO FUEL OPTIMISM As the dust settles following the federal election, it appears it will be ‘status quo’ in Ottawa with respect to federal agricultural policy. However, the next Minister of Agriculture will have to deal with a decidedly less optimistic agri-business sector as short and long-term expectations for business performance took a nosedive in September, according to new research from the Canadian Federation of Independent Business (CFIB). This decline in optimism is not exclusive to the agricultural sector. Overall, the short and long-term optimism of small businesses across Canada decreased significantly in September, back to the low levels seen at the beginning of this year. CFIB’s Business Barometer® Short-term Index is based on 3-month forward expectations for business performance. As of September, this index has dropped about 13 points to 43.2. The long-term optimism index which is based on 12-month outlook dropped nine points to 57.8.
Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger in the next year outnumber those expecting weaker performance. All sectoral longterm outlooks worsened, with retail and agriculture plummeting the most – by more than 10 points each. It is not surprising to see this downward shift in outlook among agri-business owners, given the drought conditions experienced across many parts of Canada. Across areas in Ontario and the Prairies, livestock owners find themselves scrambling to find feed, desperately trying to hang on to their herds. Meanwhile, grain operators are reporting significant yield reductions, with some unable to fill their forward contracts. In CFIB’s September survey, business owners were also asked to identify the major cost constraints that are impacting their business. Not surprisingly, 60 per cent identified product inputs and fuel/energy (55%) as the
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major concerns. Insurance (54%) and taxes/regulations (52%) also topped the list. It is obvious farmers are worried as they are currently staring down record fertilizer prices and high energy costs heading into the fall and winter. When asked to identify the limitations on sales or production growth, agri-business owners said the shortage of skilled labour (35%) and shortage of un/semi-skilled labour (32%) were hindering their businesses’ growth. One-quarter of businesses were grappling with shortage of input products. It is clear that many of these significant cost pressures coupled with a shortage of labour and supply chain issues are compounding the devasting impacts of the drought already facing many agri-businesses. However, it doesn’t seem like much relief is on the immediate horizon for either of these additional challenges.
CFIB will be surveying its members from the agricultural sector in the coming weeks in order to understand what federal and provincial governments should be focusing on as they work to construct the next Agricultural Policy Framework (which will need to be in place by April 2023). There is a lot of heavy lifting to be done to ensure this next five year Federal-Provincial-Territorial agreement helps farmers become more competitive and adaptable to the many global challenges which have been magnified throughout the pandemic. The economic contributions of those in Canada’s agrifood sector have never been more important. We hope governments recognize this and make the agricultural sector a top priority given its significant role in Canada’s economy and its role in providing safe and healthy food for Canadians and the world.
When the next federal cabinet is appointed, particularly the Minister of Agriculture, CFIB will be encouraging the federal government to focus on policies which address some of these concerns and ensure policies fuel, rather than dampen, optimism in the agriculture sector. There is a general consensus across the industry that agriculture can play a huge role in Canada’s economic recovery. The federal government also has high hopes and expectations for the sector to grow exports to $85 billion by 2025. If we are to achieve these goals, we must first address a number of long-standing concerns. Some of these priorities include: tackling the shortage of labour in the agriculture sector; mitigating the impacts of the carbon tax; addressing environmental regulations and proposals that create uncertainty (e.g. fertilizer emission reduction targets, the Clean Fuel Standard); reducing red tape and regulation; focusing on trade and market access; and improving access to reliable broadband internet in rural Canada. meatbusinesspro.com
SHARE YOUR FEEDBACK! Share your feedback with CFIB on what priorities federal and provincial governments should focus on for your agri-business! Contact our Business Help Line at cfib@cfib.ca or call 1-888-234-2232. Not a member? JOIN CFIB today for more help and information.
Virginia Labbie is the Senior Policy Analyst, Agribusiness for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 95,000 members (6,000 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.
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