Our September / October issue

September/October 2019

DRONES, SATELLITES AND ARTIFICIAL INTELLIGENCE: THE FARMER’S NEW REALITY RED MEAT INDUSTRY SEEKS GOVERNMENT ACTION ON CHINA HOW A SHARPENED FOCUS CAN MAKE TODAY’S BRANDS MORE COMPELLING FOR CONSUMERS

BURGERS AND CLIMATE: THE REAL BEEF TEAM CANADA ANNOUNCES TEAM FOR 2020 WORLD BUTCHERS’ CHALLENGE

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September/November 2019

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New Demand Index Measures Canadians’ Preferences for Beef Drones, Satellites and Artificial Intelligence

by Cam Patterson

Burgers and Climate: The Real Beef

by Lesley Kelly

Team Canada Throws their Cap in the Ring for the 2020 World Butchers’ Challenge Meat-subscription Companies Take over Marketing How a Sharpened Focus (in Every Sense) Can Make Today’s Brands More Compelling for Consumers U.S. Trade Deal with Japan May Cost Canadian Farmers a Tariff Edge

by Tony Seskus, CBC

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Governments Launch Market Access Initiative CMC: Red Meat Industry Seeks Promoting Red Meat Consumption to Athletic Men and Wome

by Ronnie P. Cons

CPC Has Outlined Pork Producer’s Priorities for the 2019 Election FCC Review Suggests Modest Small Business is Everyone’s Business: Make Your Voice Heard in the Federal Election

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Sept/Oct 2019 Volume 19 Number 4

NEW DEMAND INDEX MEASURES CANADIANS’ PREFERENCES FOR BEEF

By Leigh Anderson, Farm Credit Canada

MANAGING EDITOR

Protein has been a hot topic on the dinner plate of Canadians. Plant-based proteins have received a lot of attention lately. But what do we know of the actual demand and preference for animal proteins? We introduce a quarterly demand index to measure consumption preferences for beef and other meats. The barometer reveals the preference for beef remains strong.

Scott Taylor publishing@meatbusiness.ca

BEEF CONSUMPTION AND PREFERENCES DON’T ALWAYS TREND TOGETHER

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca

DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Lesley Kelly, Tony Seskus, Ronnie P. Cons, Dan Kelly CREATIVE DIRECTOR Patrick Cairns

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

Canadian per capita beef consumption has been on a declining trend over the past several decades. There are multiple reasons, but economics play a role. Beef consumption declined 11.5% from 2013 to 2015, reaching a low of 16.12 kg per person. This coincided with retail beef prices rising 30.7% over the same period.

Evaluating prices, income and consumption patterns together reveals possible differences between consumer preferences and actual consumption trends. When incomes grow, beef prices decline or the prices of competing meat rises, consumers should be purchasing more beef. The opposite is also true. So we compare expected changes in beef consumption to actual patterns. The difference which is not explained by economic factors is a preference measure, or demand index.

The decline in beef consumption is pronounced after 2012. While consumption declined, the demand for beef remained strong, and even increased from 2014 onward. Retail beef prices rose 13.5% that year, followed by an additional 15% in 2015. That could have triggered a larger decline in consumption if it were not for positive consumer preferences.

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

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

Printed in Canada. ISSN 1715-6726

Retail price ratios offer a direct comparison of beef, pork and chicken affordability for consumers. As prices of beef moderated and the price ratio relative to pork and chicken eased, the downward trend in beef consumption recovered. Domestic retail beef prices remain historically high relative to the average long-term pork and chicken retail prices. Preferences for beef have been strong considering the small increases in consumption noticed in the last few years.

RETAIL PRICES EXPECTED TO RISE Beef consumption in 2019 appears to be relatively stable to 2018 trends. African Swine Fever (ASF) is however expected to cause food and meat inflation for the remainder of 2019 and into 2020. In addition, consumption is expected to fall as retail prices of beef will likely see some short-term price increases following a fire at a U.S. packing plant in August. The fire at the U.S. packing plant should lower the retail supply as the U.S. plant represents close to 6% of U.S. slaughter capacity.

Some substitution from animal proteins towards plant-based protein is expected in the North American market. As income levels rise, food preferences become more diverse, complex and increasingly segmented – a trend that is becoming more apparent in Canada. However global consumption of meat continues to grow especially in emerging markets.

Global demand remains strong with global consumption of beef projected to grow 1.4% in 2019. The long-term outlook for the meat industry is favourable, with an increasing focus on the export market. It is possible for both the meat and plant-based protein sectors to grow in Canada – this can all be good for Canadian agriculture.

For more information, visit https://www.fcc-fac.ca Leigh Anderson is a Senior Agricultural Economist, specializing in monitoring and analyzing Farm Credit Canada’s portfolio, industry health, and providing industry risk analysis.

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DRONES, SATELLITES AND ARTIFICIAL INTELLIGENCE: THE FARMER’S NEW REALITY

By Cam Patterson Whenever I hear the phrase Artificial Intelligence in the same sentence as drones and satellites, I’m not sure if the actual definition of “AI” is accurate. For me, I conjure up the image of Haley Joel Osment playing that synthetic boy looking for his mother in Steven Spielberg’s movie. Perhaps when we refer to it’s role in modern farming and agriculture, the more apt portrayal is the recent Blade Runner movie, where the protein famer works in a containment module as an air-car passes overhead, and Ryan Gosling appears as the Replicant – virtually an “AI” cop.

As much as that is science fiction in a dystopian world, the idea of the farmer of the future might not be too far fetched beyond the movie. Just because we have smart tech and computers that can analyse farm fields and livestock from space today, does not really mean it’s actually AI. But it could be well on its way.

Drover’s Magazine, a U.S. based beef industry magazine and website, ran an article recently whereby JBS, one of the largest meat processors in the world, announced their South American operation was using satellite technology to monitor 450,000 acres of Brazil to ensure they are not sourcing cattle from deforested areas. JBS Chief Executive Gilberto Tomazoni told Drover’s, “We need to offer what the consumer wants. We cannot do that without worrying about the environment and animal welfare. This is fundamental to our business.”

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and sustainable practices, we should wonder just how far technology has gone with respect to the farm and agriculture. When it comes to science and technological advancements since the industrial boom of the 1900s, it has always raised the age-old question of when “we should” and when “we shouldn’t”. In other words when science is going so far as to actually be detrimental to an industry, and since we’re talking about agriculture then let’s be specific – replacing jobs with automation, machines and computers.

Don’t get me wrong. There have been some remarkable strides in the last few years with farm and agriculture technology, all on the heels of the sustainability programs and campaigns, and climate change awareness and initiatives. And I’m one of those who believes we’re long overdue in paying attention to how we’re using our planet’s resources and how to ensure it’s still around for our children. The harsh reality is food production is quickly colliding with a critical mass point measured against global population estimates of 10 billion by 2050. That’s close to double the current population, so double the amount of food consumption without a way to double the land yield to raise, cultivate, and procure enough food to feed the planet.

So, ultimately, science and tech is the ace up our sleeve in a manner of speaking.

Regardless of the pros versus cons conversation around agriculture technology, some advancements are making it into science journals all around the world. Many have

already provided regular farmers with unprecedented macro-level insight previously the luxury of only the mammoth corporate mega farms. The playing field is more level and the science more affordable, and ultimately in many countries, more funded.

LET’S LOOK AT SOME ADVANCEMENTS YIELDING ASTOUNDING RESULTS BOTH PRO AND CON. Drones, or UAV’s (Unmanned Aerial Vehicles) are by and far yielding the most practical use on today’s farms.

Despite the controversial reputation drones have gotten from irresponsible use, there is a practical application to these small wonders that is making an undeniable mark in agriculture. Companies are springing up all over the world with advanced multispectral photographic and sensor technology that has given the agriculture industry an edge in precision farming.

Livestock management has definitely benefited from drone use. RFID tag frequency range has increased and now drones can pinpoint the actual animal, which for many a rancher in calving season, is an invaluable tool. Using Photo Orthormosaics – essentially flying a predetermined grid - and when outfitted with 3D and infrared cameras, the farmer can monitor herd health and development, showing an individual animals muscle density mass and assimilating the data to assist

in determining the best time for feedlot sales.

Infrared cameras can also gauge animal sickness and find animals under foliage while also collecting data readings of the pasture, assimilating real-time data into computer graphic layers measuring Crop Performance, Soil Imagery and Class, Photosynthesis and Phosphorous Content, Nitrogen Content, Fertilizer Levels, Pest Infestation Matrix, Chlorophyll Absorption, Water Content, and Yield to Acre Ratios.

So essentially the same drone used to find cattle can measure the pasture by simply changing the payload with a multispectral camera. Thermal Imaging cameras can actually perform infrared scanning of cow udders to spot the bacterial infection that commonly leads to Matitis, which is a huge advancement for the dairy industry.

There are even Fitbits for cattle and pigs, essentially smart collars that track health, stress, and movement to consumption and fertility. Sensors and remote handheld cow breath meters can show elevated levels of acetone which could signal infections, and give the farmer advance warning, thus not only catching disease before spreading to an entire herd, but also minimizing antibiotic use.

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Audio health monitoring is being used in pig barns, detecting coughs, which could signal early virus detection for PEDv, African Swine Flu as well as a whole host of other pathogens that end up costing the industry hundreds of millions of dollars and result in less antibiotics administered. As well Automated Behavior Analysis cameras have become widespread applications to track and monitor animal behaviour in pig and chicken barns. The use of 3D camera technology allows for heat signature data recognition to gauge health and weight estimates without personal contact with the animal. There is even testing happening to have camera facial imaging recognition do away with common animal markers like ear tags and tattooing.

The digital capture from drone and fixed cameras in barns and on farmlands combined with home-base computer software is so advanced and precise that these machines can in fact synthesize data and make decisions on that data when it comes to alerting of sick animals, triggering feeding operations remotely, or for crop farmers, activate sprinklers; even pinpointing which plant requires more watering. This is the point where the “AI” definition is hitting close to home.

However, the detractor to advance science essentially taking the guesswork out of farming is how close we are to removing essential jobs. Since that is the tent pole for the world’s economic stability, the con to all of this futuristic precision farming is without jobs no one can buy the food and the economy won’t survive.

Thus the science won’t matter without a practical plan to sustain employment, which highlights the inevitable social and ethical implications of “AI” run farms.

The transportation industry is naturally keeping a keen eye on the Food to Miles issue because this sustainable initiative is designed to phase out produce and livestock transports. Even if the trucking industry can get electric, self-driving trucks to actually work – which they are actively pursuing to ensure less carbon footprint from their industry – it will still result in the loss of an invaluable workforce.

The same can be said for the farmer. John Deere recently released a video commercial highlighting their FarmForward 2.0 concept of the future farmer.

It plays more like a Ridley Scott movie but definitely depicts where we are headed. The pros do outweigh the cons if it really does play out as the video shows.

Regardless, it’s worth watching.

Vertical farming and hydroponic habitats are not necessarily a new idea, but in the new tech age of growing produce in hyper-ideal conditions of artificial lights and climate controlled rooms looks more like a scene from the Martian than actual farming. These new facilities are springing up in cities and regions where that particular produce would normally not grow, subsequently doing away with the need for transports to get it from the field to the stores.

Because they can be tended and farmed 24 hours a day, they can yield more produce than a conventional farm field, however only certain plants prove to be profitable to grow in this manner – for the time being.

This is also true for the fish industry where some of the most remarkable advancements are happening with inland saltwater fish farms. And here is a surprising statistic, farmed fish consumption has surpassed beef consumption globally. That shouldn’t come as a surprise but for us Canadian born and bred red meat eaters, that’s shocking! Regardless, at a ground breaking fish farm lab in Baltimore, MD they have designed the first ever, completely self-reliant, artificial ocean eco-system environment in the world – absolutely no fish waste, carbon emissions, or any sign of climate change footprint is emitted from the plant. They are successfully raising ocean stocked fish for local consumption, and of course, doing away with the need for refrigerated trucks to get fish to market in timely fashion.

In the scientific long run, the real ground breaking science that could save agriculture and the world food crisis sure to come is advanced GMOs. Companies like DuPont and Syngenta are at the forefront of this advanced technology with synthesized, drought resistant corn called AquaMax and Artisian.

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Applying this science to other crops has the potential to lead to substantial crop yields for yams and potatoes for example. Then there is rice, which has already plateaued the yield to land ratio, meaning the maximum amount of yield per acre of land has already been attained. The C4 Rice Project involving multiple countries is working to develop a new strand of high output rice plant with a 50% yield increase. Even pigs are being genetically modified with certain gnomes to guard against disease – specifically PEDv and ASF.

I’m reminded of an article I did on Dr. John Church a few years ago. He is an associate professor at Thompson Rivers University who was working on a drone program and summed up the role of technology in the farmer/ rancher’s life very well. He said, “Ranchers do an amazing job of eyeballing their pastures, but that is not a science. What we would like to do is give those ranchers quantitative tools to better help them ‘eyeball’ what is going on in their fields and on their ranch. This is key to the success of this technology.”

I haven’t even touched on farming robots, but that feels a little too close to real AI. But rest assured that reality is quickly becoming commonplace on the farm and food processing factory floors.

So, keeping an eye on agricultural sciences and the balance between true sustainable and enhanced food production, and the health of an industry workforce, should also be part of any advanced research.

Which brings me back to the farmer and all this technological advancement. What is concerning is the farmer to consumer ratio that points to an alarming trend in farming. Around the turn of the century 11 million farmers and agriculture workers in the U.S alone generated food for an average of 73 million people.

Today only 6.5 million farmers and workers supply food to 321 million. That statistic should set off alarm bells in any food producing industry because science, automation and robotics are already replacing millions of jobs in the agriculture sector. At this rate, no workers will be needed by 2050.

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BURGERS AND CLIMATE: THE REAL BEEF

By Lesley Kelly

have two burgers. One is a beef burger from McDonald’s onthe left and the other on the right is a Beyond Meat, plant-protein burger from A&W.

by picking one over the other, we’re doing our part in climate change and being more environmentallyfriendly.

You’ve been told by companies, groups and the media to choose; to eat less meat because one is better for the environment, and we’ve been led to believe that

What if I told you that both burgers are doing their part and all agriculture is part of the solution, not the problem? What if I told you it’s not one versus the other when it comes to climate change? What if I told you there is more to the story than these companies are sharing?

To let you know, my family and I grow lentils. I’m grateful demand has grown for this tiny seed jammed packed with protein. I don’t raise cattle but have friends who do and am grateful for all they do to also raise nutrient-dense food.

All of agriculture, both the plant protein and the beef burger are doing their part when it comes to climate change. Agriculture in Canada accounts for 8% of emissions, and cattle contribute less than half of that at 2.4%. But did you know the largest sources of emissions were transportation at 28%? Why are we blaming cows, dairy and meat so much?

Contrary to recent headlines, giving up meat won’t save the climate or even make a significant difference to climate change. According to the University of California, Davis, ifAmericans were to eat the plantbased burger instead of the beef burger on Meatless Monday every week for a year it would only be a reduction of 0.3% in emissions. If I were to go vegan for a year, I would reduce 0.8 tonnes of greenhouse gases.

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Is that 0.8 tonnes a huge difference? Not as much as you might want it to be. One round trip flight from the US to Europe emits 1.6 tonnes so a whole year of reducing meat in your diet has only half the impact of a single transatlantic flight.

Removing animals from agriculture would lower greenhouse gases to a small degree and there’s unintended consequences if we removed them completely. There’s a really great story when it comes to agriculture’s environmental footprint missing from those headlines and trying to get you to choose sides.

One part of that solution is right under our nose…. literally. It’s in the soil. By managing soils for healthy crops and raising healthy livestock, soil can hold water, nutrients and capture carbon. As per the United Nations Intergovernmental Panel on Climate Change (IPCC), agriculture and forestry land use in the US currently takes in and captures more carbon than it emits.

WAIT…..WHAT? “The Agriculture and Forestry sectors combined are capturing more carbon in the atmosphere than they are putting out.”

These headlines aren’t sharing agriculture is doing our part. In the past, our lentil fields would be ploughed so all you would see every other year would be soil and some weeds. But by growing a crop and minimally disturbing the soil by direct seeding, lentils take greenhouse gases out of the air, create nitrogen and then put nitrogen back into the soil. It’s like nature’s way of fertilizing the crop for next year and capturing carbon.

But not all land is suitable for growing crops. Only 3.2% of Canada’s land can be used for growing crops, but cattle can inhabit and graze nonarable land. Pastureland used for grazing cattle in Canada removes greenhouse gases and stores the emissions of 3.62 million cars per year. Raising cattle has many environmental benefits such as soil replenishment, nutrient recycling, preservation of natural grasslands, and improving biodiversity and wildlife habitat. It’s pretty incredible that cattle can upcycle land, which is otherwise unproductive to humans, into protein-rich food for families while returning benefits to the land.

These are just a couple of examples out of so many more of farmers and ranchers helping be more environmentally friendly and efficient. Whether we September/November 2019 100TH ISSUE | March/April 2019

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grow crops or raise livestock, we care about the soil and environment.

TEAM CANADA THROWS THEIR CAP IN THE RING FOR THE 2020 WORLD BUTCHERS’ CHALLENGE

We know we have more work to do but we have been working hard at being more efficient, doing our part and being part of the solution.

There is always more to the story than the click-bait headlines. When you read or hear about “Eat Less Meat to Save the Planet” or have to choose between a plantbased or a meat burger, please remember and know that there are farmers and ranchers behind the scenes doing their best to save the planet too.

I appreciate that we get the choice of how to farm and you get so many choices in the grocery store and at restaurants. For me, I’ll always choose the beef burger.

Lesley Kelly is the creator of High Heels and Canola Fields and she is a wife and mother of two and is passionate about agriculture. She is a motivational speaker, podcast host, blogger, creator of a snack food company, co-founder of the Do More Agriculture foundation.

For more information, visit http://highheelsandcanolafields.

SOURCES: National Inventory Report, 2016; CRSB, 2016 http://www.agr.gc.ca/eng/ science-and-innovation/ agricultural-practices/climatechange-and-agriculture/ agricultural-greenhouse-gasindicator/?id=1461014704763 http://ipcc/report/srccl/ https://www.carbonbrief.org/indepth-qa-the-ipccs-special-reporton-climate-change-and-land http://www.beefresearch.ca/ resources/images.cfm https://sustainablesociety.com/

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Team Canada photo (left to right): Corey Meyer, Brent Herrington, Elyse Chatterton, Peterreign Baarda, Lee Barker, It’s time for the butcher to take as Taryn the next Damian Goriup, Aaron McLaughlin, Dave Vander Velde

culinary superstar. This forgotten trade is seeing a much-needed resurgence and taking the gastronomic spotlight across the country as television shows pop up, public butchery courses proliferate, and chefs make the leap from the restaurant kitchen to the butcher shop.

For the first time ever, Canada will be entering a team into the World Butchers’ Challenge taking place in Sacramento, California, September 5, 2020. Creating a Canadian team was the brainchild of Peter Baarda, Team Captain, three-time winner of Ontario’s Finest Butcher competition, and owner of J&G Quality Meats, Aldershot. It was a rigorous try-out process for those wanting a spot on the team and in the end, seven butchers were chosen to join Peter to represent Canada at this prestigious competition.

“Our industry faces a critical shortage of skilled labour.

Esteemed competitions like this help elevate the profession to where it belongs as a true and respected trade. As an association, we are proud to put forward and support a Canadian team in the World Butchers’ Challenge,” says Carol Goriup, president, Meat & Poultry Ontario.

Competing comes with a hefty price tag as competitors must travel across our vast country to practice together, not to mention the expense of travel to California for the competition itself.

Canada, and Bon Ton Meat Market. Currently he is the Instructor/Production Manager at the National Meat Training Center, in Olds, Alberta.

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DAMIAN GORIUP (OAKVILLE, ON) FLORENCE MEATS A second-generation butcher with over 40 years’ experience, Damian and his wife Carol co-own Florence Meats, a provincially licensed manufacturer of smoked and air-dried products and retail butcher shop. Damian is a past winner of Ontario’s Finest Butcher, has multiple Ontario’s Finest Meat awards, and Oakville’s Business Excellence Award.

Damian’s favourite thing about butchery - “I have the ability to be innovative with different meats and products and can provide any requested cut.”

DAVE VANDER VELDE – (STONEY CREEK, ON) It’s the competition itself. As such, a GoFundMe campaign VG MEATS has been set-up to help offset travel expenses. Funds raised Trained in sales and marketing from Niagara College, from this campaign will also help defer other associated Dave has over 25 years butchery experience. He has costs such as uniforms, props, and ‘practice’ proteins. worked in all areas of the meat industry including Please consider supporting the team. abattoir, wholesale, and retail businesses and is currently the Store Manager for VG Meats in Stoney : MEET TEAM CANADA Creek, Ontario. Dave is always learning and trying AARON MCLAUGHLIN (DIDSBURY, AB) – OLD’S COLLEGE new things while searching for ways to be creative Formally trained at SAIT in the Retail Meat Cutting Program, and efficient.

Aaron has been a butcher for 19 years. Aaron’s experience includes working in the fast-paced meat market of Calgary, working with Safeway Canada, and Bon Ton Meat Market.

Currently he is the Instructor/Production Manager at the National Meat Training Center, in Olds, Alberta.

BRENT HERRINGTON (PORT PERRY, ON) HERRINGTON’S QUALITY BUTCHERS As a former farmer, Brent brings the farm to the table.

He is a 30-year veteran of the trade and has owned Herrington’s Quality Butchers for the past 20 years in Port Perry, Ontario. Brent is a four-time Ontario’s Finest Butcher finalist and part-time teacher at Durham College.

Brent’s favourite thing about butchery - “Passing on the knowledge I have learned, and continue to learn, in this industry.”

COREY MEYER (EDMONTON, AB) – ACME MEAT MARKET Corey is a third-generation butcher, trained in the Meat Cutting Program at NAIT, and has been cutting meat for 23 years. Owner of ACME Meat Market for the last 10 years, Corey has been voted best shop and best butcher by the public for the past 10 years in Vue Weekly’s “Golden Fork Awards”.

Corey’s favourite thing about butchery - “I enjoy the physicality of the job and interacting with the customers that come in.”

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Dave’s favourite thing about butchery - “Being able to ‘take pride in a job well done’ while using creativity to produce high quality results.”

ELYSE CHATTERTON (EDMONTON, AB) A butcher, baker and passionate G&T maker with over 20 years’ experience at the butcher block, Elyse is currently a culinary instructor at a cooking school in Edmonton, Alberta and teaches meat-based processing and cutting classes in Strathcona County for the Hunters Education Program.

Elyse’s favourite thing about butchery - “I enjoy being a part of a food story that has evolved and developed over the years yet stays true to the origins of the craft. I also like showing those who think ladies can’t cut meat a thing or too as well!”

PETER BAARDA (BURLINGTON, ON) &G QUALITY MEATS Peter has honed his skill for 28 years, working in high-end butcher shops and for large meat processors before purchasing his own shop three years ago, which he operates with his wife, Keri.

Peter is three-time winner of Ontario’s Finest Butcher competition and Ontario’s very own Iron Butcher.

Peter’s favourite thing about butchery - “It’s fun to be just the guy who’s on the block cutting and that’s

your job for the day. You don’t have to worry about problems or orders, you’re DF: I don’t think being on the island really impacted us negatively one there – has you’re cutting.” way or the other. We’ve traveled a lot, lot of other farmers and livestock TARYN met LEEaBARKER (PORT MOODY, BC) producers in other parts of Canada, and THE LITTLE BUTCHER we all seem to have the same issues Taryn has held numerous positions in and same concerns.

the meat industry for 15 years, as a I understand that your farm butcherCMB: for last eight. She is the owner was the first in Atlantic Canada to be of The Little Butcher in Port Moody’s involved in the TESA program. trendy Newport Village. Her shop won DF: Yes, I think we were the first farm Best New Business in their inaugural east of Ontario as far as I understand. year andI’mhas won Best Butcher Shop not sure why the eastern every year for the past six. have previously associations wouldn’t

nominated anybody because there are

Taryn’s favourite about butchery many farmsthing here on PEI doing every much as we are to attain a “The artbitofasthe industry.

It’sasconstantly high level of sustainability. changing and there are always Anyway, new we were very surprised things to learn and try out.” when the PEI

Cattleman’s Association nominated our farm. sponsors to date include Canada Corporate

Beef, Friedr Dick Knives, Europaeus, Pearl Street CMB: And then you were attending the Communications and Chef Works. in Interested Canadian Beef conference Calgary corporate and sponsors you won.can contact Team Canada General Manager Franco Naccarato at franco@ DF: Yeah! That was a very nice moment oimp.ca. for us. But I don’t like to use the ABOUTword WORLD CHALLENGE 2020 win BUTCHERS’ actually. However, being recognized for our commitment was The World is being a realButchers’ honour. IfChallenge 2020 you want to know hosted in the land of Kings, Golden 1 Center the truth, it was a pretty humbling in Sacramento, California on September 5, experience. As I said to CBC when they 2020. The competition itself is conducted over phoned me after the conference, I was a three hour and fifteen-minute period with just floored, really couldn’t believe it. competing teams given a side of beef, side of pork, whole and that five chickens CMB:lamb So now you havewhich beenthey mustrecognized, then transform into think a themed do you that display will of value-added products.

Teams can provide draw more attention and garner more their own seasonings, marinades and nominations outspices, of Atlantic Canada garnish to finish products that are designed to going forward? inspire and push the boundaries, yet which are DF: Absolutely.

We’ve lot also cookable and would sell ingotten a retaila setting.

Independent score each team based of goodjudges press highlighting the island on technique and skill,I’m workmanship, product cattle industry. positive you’ll see innovation, overallinfinish and presentation. more farms our neck of the woods nominated next year. And I have to give ABOUT MEAT & POULTRY ONTARIO the Canadian Cattleman’s Association recognition choosing a farmare from Meat & Poultryfor Ontario members Prince Edward Island.

We are small committed to creating delicious, healthy players infoods the national beeffamilies. industryIn and nutritional for Ontario and think it was a for realyour credit to their addition to Iproviding food table, your to recognize us.driver They in local organization butcher is a strong economic urbantreated and rural Ontario’s meatand andit all Ontario. the nominees royally poultrywas sector employs 25% of Ontario’s food a real class act. It was a wonderful and beverage processing industry — the single experience. largest manufacturing employer in Ontario — and generates $8.8 billion of the province’s $42 billion food and beverage processing industry revenue. meatbusiness.ca

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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 While working door-to-door a year’s want what is best for their healthpitching and that deals of theirfor families.

They are aware that Marc a lot ofLafleur false information is out there worth ofalso frozen meat, realized consumers and asquality, such, are open to scientific facts that can their want local meat, but can’t afford thecorrect freezer misconceptions.

liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach.

found in vegetables is harder to absorb thanMODEL. the iron FARMERS AND SHOPPERS APPEAR TOIronBE BUYING INTO THE NEW

space or the cash to do it.

This provides an opportunity for retail meat departments to implement an instore ‘Healthy Meat Facts’ nutritional He co-founded TruLocal, one of many meatcampaign to set the record straight and convince their subscription-box companies start delivering inone’s customers that meat and poultrytoare actually good for Canada in that recent toincrease feed consumer cravings for health and theyyears should rather than decrease their purchases it. The campaign outlined belowhassles. can have local, ethically of raised meat without logistical a direct impact sales: They also solveonproblems for the farmers who no longer Start to by worry displaying instore posters promotingand the stand nutritional have about finding customers to value of meat.

They should be innovative, eye catching and make more money.

be designed to specifically contradict any meat myths. The comments should all be literature based quoting research “We pretty much started off ... inVarious a garage.

We should had a papers or MDs for maximum effect. posters couple of- chest freezers,” saidpowerful Lafleur,message CEO of covering Kitchener, be made each with a brief but one theme. TruLocal, who co-founded the company in Ont.-based

2016 with initialthe offering of healthy four products Posters canan convey following meat factand only messages: 30 customers.

1. Let’s IRON out the Truth on Meat!

“Youcompany would need to eat a massive amount of spinach to to The now boasts several employees, ships equal (the iron content) in a steak,” says Christopher Golden, three provinces and offers dozens of different cuts of an ecologist and epidemiologist at Harvard University in meat, including beef liver, turkey thighs and buffalo Cambridge, Massachusetts. (As quoted by nature.com in the sausage. article ‘Brain food- clever eating’.)

Lafleur attributes the rapid growth to customers’ desire For a woman to receive her recommended daily intake of 18 to whereneed their meat comesoffrom.

When the mgunderstand of iron, she would just 300 grams cooked bovine company surveyed customers about what matters to

found in meat as it is attached to fibre which inhibits its absorption.

them when purchasing meat, their No. 1 demand was

2.transparency.

Eat Meat for a Healthier Brain!

Being deficient in the micronutrients found in meat have been “They wanted to have as much information as possible linked with low IQ, autism, depression and dementia says where their products were at coming from,” of he said.

Dr.about Charlotte Neumann, a paediatrician the University California, as quoted in the article ‘Brain food- clever eating’.

Zinc is crucial for learning and memory.

B12HURT THE CONVENIENCE FACTOR Vitamin DOESN’T preserves the sheaths that protect nerves.

3. Boost Your Immunity with Meat!

A small box of meat costszinc lessisand is easier to store Due to its antioxidant powers, involved in creating antibodies fight freesupply radicalsLafleur that increase our previously. risk for than thetofull-year peddled In chronic diseases. cities, many people live in small spaces — with some 4.micro-condos Power Your Muscle with with Meat!ovens — and don’t even Growth doing away The protein meatfor helps build and repairItbody tissues. have the in space a chest freezer. can also be easier Muscles areamade of protein.

That is whyan athletes who are sum, to afford monthly payment than annual lump building muscle strength increase their meat consumption. he said.

The protein and zinc found in companies meat are important for muscle Before subscription-box emerged, only the growth and repair.

most motivated city dwellers could find a farmer to

5.purchase Meat is the Complete meat from. Protein!

Meat contains all of the nine essential amino acids that your body cannot make by itself. Say ‘hello’ to histidine, leucine, Victor Straatman, who co-founded Meatme in 2006, isoleucine, lycine, methionine, phenylalanine, tryptophan, threonine, and valine. why when meat ishe called a complete recalls trying to doThat justisthat moved to protein.

Vancouver from the Netherlands, where he was able to

meat online.

6.purchase Eat Meat local for a Healthy Heart!He couldn’t find a similar Meat contains lots of the vitamins needed forathe system in Canada andBeventually found farmer who production of hormones, red blood cells and for the properlot in agreed to drive six hours to meet him in a parking functioning of your nervous system. the city to sell him some meat.

Say ‘hello’ to niacin, folic acid, thiamine, biotin, panthothenic acid, vitamin B12 and vitamin B6. They are all found in meat.

“I felt like thrown back like 10 years or 15 years in the

The line thatage,” ‘the best defense is a good offense’ does not internet he said. only apply to sports. It also applies to countering negative meat health myths. Implementing an instore ‘Healthy Meat City dwellers also go local butcher to on purchase Facts’ nutritional can campaign to to setathe record straight meat local, ethically cuts. and poultry.

It is araised good way to go on the offensive by using education your customers and increasing your sales..

Ronnie Cons is CEO of C&C Packing Inc., a leadingto Canadian distributor of But P.increasingly, Canadians expect be able to order meat and poultry. He can be reached at RCons@CCpacking.com.

their food, and most anything else they need, online.

Canada’s major grocers spent the past few years implementing and quickly expanding their e-commerce

22 CANADIAN CANADIAN MEAT BUSINESS September/October March/April 2019 | 2017 100TH ISSUE 16 September/October 2019 MEAT BUSINES 16

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offerings, and subscription box companies offer that same benefit to timestrapped home cooks.

In order to succeed, though, these companies also had to offer an incentive for farmers to work with them.

VANCOUVER-BASED MEATME WORKS WITH ABOUT SEVEN FARMERS. “They basically can focus on what they like to focus on, (which) is raise their animals,” said Straatman. “And then we actually deal with the rest, so the whole butchering process, and all the logistics to get their product to people’s door.”

Dave Semmelink knows he must sell the meat of the livestock he raises on his more than 40-hectare farm on Vancouver Island, but he hates that part of his job. The introvert prefers to spend his time among his pigs, chickens and lambs, plus he finds it difficult to put on a sales hat after 14-hour days of manual labour and admits he lacks the skills to build and manage a website.

For several years, he attempted to sell his meat online to customers in the Lower Mainland. But he stopped travelling to Vancouver last year for deliveries because of complicated logistics and the cost of the ferry.

He started working with Meatme a few months ago and, so far, “it’s been amazing” in no small part because the company took over promoting his products, connecting him with customers and relieving the nightmare of shipping logistics.

It also pays better than selling his meat to packing houses via auction, which he said would offer him a quarter of what Meatme pays. In that scenario, Semmelink says, “I couldn’t make a living.”

Farmers who sell meat through conventional methods tend to earn about 16 cents on every $1 at retail, said Luke Armstrong, who co-founded Niku Farms, a Toronto-based meat-subscription-box company.

Under his company’s model, they earn at least three times that, he said, partly because the company strives to purchase as much of one animal as possible rather than just a few cuts.

At farmers’ markets or restaurants — both alternative sales outlets — buyers tend to want one or just a few specific cuts, meaning it can be hard to find a buyer for remaining chunks of the animal.

Farmers and shoppers appear to be buying into the new model.

“It’s been incredible growth,” said Armstrong. The company started with one farm supplying it, and now boasts seven and is bringing on several more to satisfy consumer demand.

For more information, visit https://trulocal.ca/, https://www.meatme.ca/, https://www.nikufarms.com/ 100TH ISSUE | March/April 2019 September/November 2019

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as opposed to reactivity? Expresco is a compelling case study in making the argument for increased transparency.

HOW A SHARPENED FOCUS (IN EVERY SENSE) CAN MAKE TODAY’S BRANDS MORE COMPELLING FOR CONSUMERS

1. FOCUS ON MAINTAINING YOUR DRIVE FOR INNOVATION AND QUALITY.

The desire to grow is an important one, and is essential for brands with goals to increase their distribution.

Doing so in a way that upholds standards for product quality and continues to encourage product innovation is critical.

In the interest of continued expansion, last year, Expresco expanded its plant earlier this year, which allowed us to achieve both of these goals. We currently source only 100 percent whole muscle products and 40 percent of our products are antibiotics free. As well, we have recently become Organic Certified, all of which help us to meet a key and growing consumer demand.

The state of the meat industry may have been turbulent within the last year, but consumers continue to speak, loud and clear: foods they can identify with still take precedence. For processors, brands, retailers and the like, that oftentimes means a sharp focus on their consumers’ values, as opposed to a sole focus on the “trend of the moment”.

While new trends, exciting diets and product innovations seem to frequently disrupt the meat industry, the demand for transparency has never been more boldly claimed by consumer groups. The food industry – across all categories – must have a more precise focus on each part of the production process, from manufacturing to on-shelf presence at the retail level.

Category leaders, like Expresco, have applied the knowledge they have of their consumers to their daily work and continued innovation. They know shoppers will continue to support companies they can identify with. To remain relevant among steeper competition, however, they must engage with them with a sense of authenticity and ingenuity.

Understanding this, how can other leaders within the meat industry train their sights on proactivity, 18 CANADIAN MEAT BUSINES

March/April 2019 | 100TH ISSUE September/October 2019

We also adhere to strict quality standards and work only with suppliers that engage in the same high quality standards that we do. Our supplier approval program requires each to have CFIA / USDA approved facilities.

Furthermore, we require suppliers to provide food safety certifications and letters of guarantee, including allergen declaration and product specification. Shoppers are willing to try new and innovative products that also assure that they are buying and consuming only the highest quality products and ingredients.

2. FOCUS ON TRANSPARENCY AND SUSTAINABILITY.

We believe protein sourcing is extremely important, as consumers demand to know where their products come from and what type of environmental conditions the animals are exposed to. Because transparency is more important than ever, manufacturers today must be conscious that their shoppers no longer expect high quality, sustainable protein to be a premium option, but rather, a mandate. The way the animals are treated, their living conditions, the people who care for them, as well as how the meat is processed and packaged all contribute to the image consumers have of a sustainable protein.

In fact, the demand for sustainability and the demand for a clean label go hand-in-hand. Just as sustainability is essential to the upbringing and caretaking of livestock, similarly, clean label initiatives value the growth and caretaking of produce. This is further proof that the concern for transparency simply boils down

an intense need for trust and ranks in the top three needs of Millennial shoppers – alongside non-GMO and organic foods.

3. FOCUS ON YOUR CORE CONSUMER BY TAPPING INTO THEIR PARTICULAR CHALLENGES.

Nevertheless, we consistently seek out ways to innovate our products, looking at everything from resealable packaging to innovative flavor palates.

About Expresco Foods Since 1987, Expresco Foods has been committed to creating top quality, portion controlled, value-added convenient meal and snack solutions. Expresco’s innovative and entrepreneurial spirit has guided the development of fully cooked grilled protein products, frozen and fresh for foodservice, retail and deli across North America, with offices in Montreal, Chicago, Florida and California. Visit www.exprescoprosticks. com for more information.

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

Through consistent innovation, we strive to not only beat the industry’s trends, but also serve the direct needs of our own consumers. They have very real challenges that we believe we can help solve.

In particular, they have much less time for food preparation, which has left many shoppers seeking out solutions to fill the void of nutritional and convenient grab-and-go options.

About Expresco Foods Proposed beef abattoir in Cloverdale would be B.C.’s largest such facility Because our mission 30,000-square-foot is to provide an excellent solution Since 1987, to our shoppers’ inherent challenges, ProSticks

By Amy Reid, Peace Arch News Expresco Foods has

by Expresco offer convenient portability and an so as to not emit odours. And while there isbeen an operational A federally licensed beef processing facility is in the works committed unmatchable source of protein. Not only has this drive 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. to creating top made our products extremely accessible to consumers, only process a limited number of cattle.

“There’s a new building coming forward, a new abattoir, I quality, portion but it has also them a better-for-you snack that Chris Les is general manager of Meadow Valley Meats, thinkmade that’s the French pronunciation of slaughterhouse,” controlled, valuethe company behind the project. Meadow Valley Meats is said Councillor Mike Starchuk.

“So Surrey will have a caters to today’s leading food trends. added convenient seeking a Canadian Food Inspection Agency license for newer facility with a better capacity so people will have the proposed abattoir, to become a federallymeal registered the ability to not have to ship an animal to Alberta to have and snack The qualityitof the product is of the upmost important meat establishment and expand the operation. This would processed. The applications have gone through the solutions. Expresco’s to our consumers who identified their desire for allow the meat products to be transported beyond B.C.’s Agricultural andhave Food Sustainability Advisory Committee.” innovative and boundaries. high proteinTheand low carb ingredients.

Containing more facility is proposed on a 25-acre property within the entrepreneurial “Our focus is on trying to bring a more efficient, sustainable Agricultural Land Reserve at 5175 184th St.chicken, The planned than 20 grams of protein and whole-muscle local product to the market, realizing we can do that now 30,000-square foot abattoir in Cloverdale would process up spirit has guided ProSticks offer a nutritional difference that sets it apart in a very limited sense,” said Les. “I caution people when to 100 head of cattle per day. the development of from other snack foods competing for this coveted talking to them and they say, ‘What a big plant, that’s going According to a city report, that would make it larger than fully cooked grilled space on the nutrition facts panel. Many competing to go allow you to go mainstream.’ Well, yes, if you look any other processing facility in B.C.. But it would still be protein products, in the context of B.C., but this is still a very niche plant meat pack snacks only offer six grams of protein permeat small by industry standards, compared to the largest and we’ll serve a niche industry for producers and for the fresh frozen and processing Alberta process 3,000 heads serving, which is lessplants thanin half ofthat what ProSticks can of cattle per day. offer busy consumers.

The proposed facility would be fully enclosed and designed

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market. It’s certainly not going to be a monstrosity of a plant but it’ll be a big upgrade from the site currently.”

Continued on page 32

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U.S. TRADE DEAL WITH JAPAN MAY COST CANADIAN FARMERS A TARIFF EDGE

By Tony Seskus, CBC-Digital Business Unit

One of the jewels of the pact — called the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) — was Japan, which agreed to slash tariffs on a variety of goods.

It was only last year when the ratification of a trade deal with Asia-Pacific nations was heralded as a big win for Canadian exporters.

Canada’s pork and beef producers were projected to be among the big winners, gaining a potential edge over their American rivals in the pursuit of Japanese buyers.

Now it seems that tariff advantage could be short-lived.

U.S. and Japanese officials are busy hammering out the details of a new agreement that could see tariffs fall on American agricultural exports, giving them a boost in one of the world’s most desirable markets.

The precise impact could take weeks or even months to unfold, but it may offer yet another test for Canadian meat producers already coping with the fallout of Chinese trade turbulence.

“We’re a bit premature as far as understanding what the specific deal will be,” said Rick Bergmann, chair of the Canadian Pork Council. “But it does create concern for us, as we export over 70 per cent of our product around the world to 88 different countries.

Countries like Japan are very important for us.”

The Japanese market was a big reason Canada’s agrifood exporters were excited when the CPTPP was ratified late last year. The deal quickly lifted some tariffs and began phasing others out.

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Tariffs on Canadian fresh beef, for instance, have dropped to 26.6 per cent from 38.5 per cent; ultimately, they’ll fall to nine per cent. Since the deal kicked in, Canadian beef exports to Japan have soared.

Citing federal data, the Canadian Cattlemen’s Association said the volume of beef exports to Japan climbed to nearly 22,600 tonnes through the first half of the year — up more than 62 per cent over the same period last year.

“I feel safe in saying it’s going to be our best year ever in Japan,” said John Masswohl, director of government and international relations for the Canadian Cattlemen’s Association.

Trade with Japan, as well as the other nations included under the CPTPP, appears even more important in the wake of China’s decision to put restrictions on various Canadian exports, including pork and beef.

But Canada’s inroads in Asia aren’t the sort of thing that goes unnoticed south of the border, especially as President Donald Trump balked at joining its precursor, the Trans-Pacific Partnership (TPP).

The farming lobby has been “pressuring” Trump to get a deal with Japan, said political scientist Yves Tiberghien, co-director of the Centre of Japanese Research at the University of British Columbia.

The U.S. trade war with China, which has been tough on American farmers, only ratcheted up the urgency.

In turn, Tiberghien said, the White House had been putting “enormous” pressure on Japanese Prime Minister Shinzo Abe.

Then at the recent G7 meeting in France, Trump and Abe announced they had an agreement in principle and would aim to sign a final deal in New York by the end of September.

The outcome of the talks isn’t certain and terms of the deal are said to still be under negotiation. Bloomberg News reported this week that trade officials are still discussing how much Japan is willing to open its agricultural market to U.S. imports.

Masswohl sees a potential upside for the Canadian cattle sector if tariffs on U.S. beef fall: It would mean more money in the hands of Japanese buyers, he said, who will then have more money to spend.

“We also sell a lot of cattle into the U.S.,” Masswohl said. “For U.S. exporters to be making more money in the Japanese market can only be good for them buying Canadian cattle.”

Some experts anticipate that when a deal is finalized, Canadian and U.S. food producers will be on even terms in Japan.

“The short-term advantage that Canada had relative to the U.S. under [CPTPP] will likely go away — if and when that agreement is reached,” said Mike von Massow, a food economist at the University of Guelph.

If the deal happens, American producers will likely push hard to regain any market share they may have lost, said Carlo Dade, director of the trade and investment centre at the Canada West Foundation.

“I think they may price aggressively,” Dade said. “That’s what I would do.”

But Dade said Japanese tariffs aren’t the whole ballgame when it comes to the CPTPP, which includes Canada and 10 other countries in the Asia-Pacific region, including Australia, Vietnam and Malaysia.

For example, American exporters may sell cheaper goods into Japan. But, Dade explained, the CPTPP contains rules that would restrict Japanese firms from using those goods to make something else by entering them into the supply-and-production chain. Canadian exports to Japan don’t face those restrictions.

“That advantage remains with us,” Dade said.

Indeed, von Massow said it’s significant the U.S. is seeking a bilateral deal with Japan rather than join the TPP. “The other countries, Vietnam and others, we still have an advantageous position — and that’s where we really saw the biggest potential for growth. And I expect that’s where we’re prioritizing,” he said.

Still, Canada’s pork and beef sectors are watching for details as the U.S.-Japan talks unfold.

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GOVERNMENTS LAUNCH MARKET ACCESS INITIATIVE The Government of Canada and Government of Ontario are taking action to help Ontario food and agri-product exporters pursue new markets.

Starting in early September, the Ontario government and commitment to find solutions to help mitigate the will accept applications for the Market Access Initiative, critical market access challenges facing our sector,” said a new cost-share funding initiative open to all Ontario Joe Hill, President, Beef Farmers of Ontario food and agri-product exporters to assist them in accessing new markets. The Market Access Initiative To date, both the federal and Ontario governments will assist with diversification projects and is supported have committed cost-share support to more than through the Canadian Agricultural Partnership (the 2,000 projects through the Partnership to help eligible Partnership). farmers, processors, other businesses and sector organizations innovate and grow.

“Through the Canadian Agricultural Partnership, we are investing in collaborative and innovative solutions QUICK FACTS to industry challenges. The Government is committed • The Market Access Initiative will be delivered by the Ontario to creating good jobs for our families by helping our Ministry of Agriculture, Food and Rural Affairs. For more farmers and processors in Ontario and across Canada to information or to access the program materials and applications compete and succeed in markets at home and around forms, visit the web site today, or call 1-877-424-1300. the world,” stated The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food • The Market Access Initiative application intake will review Through the Market Access Initiative, sector organizations and businesses can apply for cost-share support for eligible activities that diversify markets for Ontario food products. Eligible projects will include activities such as developing plans to access new international or domestic markets and engaging in new marketing activities to achieve this outcome.

Eric Schwindt, chair of Ontario Pork, said, “Trade disputes have taken a heavy toll on Ontario pork producers in the last two years. We thank both governments for this market access initiative and look forward to working with them to ensure producers across all commodities receive equitable consideration.”

“This announcement recognizes the costs that the escalating trade disruptions and barriers are having on the competitiveness and viability of the Ontario beef sector. BFO thanks our federal and provincial partners for their swift initiation of the Market Access Initiative 22 22 CANADIAN MEAT BUSINES

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applications as received and remain open until funding budgeted for the initiative is no longer available.

• Ontario offers additional Market Development programming under the Place to Grow: Agri-Food Innovation Initiative which may be more appropriate for some potential applicants. The first intake for the Place to Grow: Agri-Food Innovation Initiative is available from August 15th, 2019 to September 27th, 2019.

• The Canadian Agricultural Partnership is a five-year, $3-billion commitment by Canada’s federal, provincial and territorial governments that supports Canada’s agri-food and agriproducts sectors.

* The Partnership’s priority areas are: * Economic development in the agri-food and agri-products sectors * Environmental stewardship to enhance water uality and soil health * Protection and assurance to reinforce the foundation for public trust in the sector through improved assurance systems in food safety and plant and animal health.

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THE CANADIAN MEAT COUNCIL (CMC) RECENTLY ISSUED THE FOLLOWING STATEMENT: Red Meat Industry Seeks Government Action on China The cost of the “temporary suspension” of Canadian pork and beef exports to China imposed on June 25 is approaching $100 million and the longer it continues, the greater the risk to Canadian jobs. As we enter the third month of suspension, the pork and beef sectors are calling on the Government to make clear their strategy to reopen the Chinese market and ensure we have more options for export diversification when such issues arise.

The suspension of product came on June 25th, triggered by China Customs discovering a shipment of non-Canadian pork exhibiting technical irregularities and fraudulently certified as Canadian with falsified documents. Canadian Food Inspection Agency (CFIA) has provided China Customs with all the information and analysis requested to demonstrate that the source of the infractions was not Canadian. CFIA has also assured China of the strong mechanisms in place in Canada to ensure compliance with all of China’s technical requirements.

Canadian pork and beef farmers and exporters have been patient and supported the Government’s efforts to find a resolution to the issue. However, as CFIA’s representations that Canada is a victim, not a culprit, have failed to resolve the matter, it becomes clear that bigger political issues are the true obstacles that the Canadian government must resolve.

We call on all parties ahead of the upcoming election to articulate how they see this file being resolved.

The longer Canadian producers and exporters remain pawns in a political stand-off – the more the threat of job losses will be felt. The red meat sector represents 266,000 jobs from farm to fork.

We have been patient and respectful with the Government. But we are entering our third month out of China and as Chinese importers establish arrangements with alternate suppliers, it will be increasingly difficult for Canada to regain market share once the suspension is lifted. The financial investments 24 24 CANADIAN MEAT BUSINES

made and commercial relations built to position Canadian meat in China are eroding daily and our global brand will be negatively impacted.

The industry also expects to have a meaningful discussion on building export resilience and compensation for the millions of dollars lost by the Canadian farmers and exporters who have been the victims of the suspension. The red meat sector has seen its highs and lows in this market over the years but China remains a key trading partner for Canada. Canada has high quality and safe meat to sell and we know Chinese consumers want and need it.

“The immediate ask is to assist industry with respect to compensation. The reason the Chinese government gave to Canada for the suspension was owing to irregularities as a consequence of CFIA. It wasn’t because there was anything wrong with Canadian product, it wasn’t because of anything Canadian companies had done, so there is an ask for compensation because it has been deemed from an industry perspective that the suspension was a result of what happened with government,” stated Chris White, CMC President and CEO. “That’s the first thing. The second thing is to assist, and government has been doing this, to help secure and identify other potential markets for Canadian product and then thirdly, if the suspension continues, are there other programs or remedies within the government of Canada? For example, if there are job losses, what can government do with respect to assisting people to get retraining or in terms of employment insurance if it’s a short term job loss.

“There are other provisions that the government has at their disposal that they can provide some short term assistance to industry so government is looking at what those options might be and they’ll be making some recommendations to industry in terms of what they think they can do.”

March/April 2019 | 100TH ISSUE September/October 2019

For more information on the Canadian Meat Council, visit https://cmc-cvc.com

100TH ISSUE | March/April 2019

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PROMOTING RED MEAT CONSUMPTION TO ATHLETIC MEN AND WOMEN NUTRITIONAL EDUCATION TO DRIVE

By Ronnie P. Cons

Even though red meat has been scientifically demonstrated to be full of the nutrients that athletes need, many people, especially women have decided to minimize or eliminate it from their diets.

The main reason is the false perception is that red meat is somehow bad for one’s health. Education is the answer - to teach them the facts that nutritionists, medical doctors and research have revealed on the benefits of red meat consumption for athletes.

Below are some educational initiatives any meat and poultry department can institute to help drive higher red meat sales among the many active, athletic men and women that live in the vicinity of your store or actually shop in your location where the meat department is located.

• Red meat is a good source of all nine essential amino acids that athletes require to build up and repair muscle tissue. The poster can explain the extra protein needs of the athlete and how a single cut of red meat can help satisfy that need.

• Red meat is a good source of iron, which is needed to make hemoglobin for red blood cells to transport oxygen to the athletes muscles. The poster can explain that research revealed that athletes need a good 30% more iron than non-athletes and that an estimated 30% of male athletes and 80% of female athletes may be iron deficient. In addition, the poster can convey that red meat has vitamin B-12 th of male athletes and 80% of female athletes may be iron deficient. In addition, the poster can convey that red meat has vitamin B-12 that helps one to avoid anemia. that helps one to avoid anemia 26 26 CANADIAN MEAT BUSINES

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• Red meat can be low fat and that meat in general has been getting leaner due to selective breeding. For example, a portion of tasty lamb can be trimmed at home so that it contains only 5% fat. In addition, about 50% of that fat is of a healthy kind.

• Red meat is a great source of various B vitamins including niacin, B1 and B2 that are required in many metabolic processes needed for energy production and endurance so vital to an athlete.

• Red meat is a great source of minerals including iron, zinc and phosphorus needed for metabolism.

• Red meat has the sought after Omega 3 polyunsaturated fats that reduce the risk of some chronic diseases.

• Red meat has biogenic substances that are often added to sports supplements for increased performance.

2) The meat department manager can set up a ‘sports nutrition event’ and promote it in-store and via social media. This event should target athletic and active people. Advertising should promote that a sports nutritionist will be on site to discuss the topic “Meat, Good or Bad for Athletes?” The event should have the following objectives: • Engage the visitors with interesting education that nullifies the false perceptions that they may have had on red meat.

• Get some athletic visitors who do not currently eat red meat - or only minimal amounts - to join a sports challenge whereby they will measure any increased performance after having added meat to their diets.

The participants will get a password to the sports challenge web site where they will start by logging in

and ranking their current performance before the meat is added to their diet. They then do a three month trial after having added the meat. Participants are asked to rank their performance online on a weekly basis. The expected improved performance results are heavily promoted in store and via social media.

• Newspaper and radio interviews should be set up to promote the results of the challenge which will lead to enhanced exposure of the nutritional benefits of red meat. The participant will probably also share his/ her results with others in the gym they go to. The net result of all the above exposure will be increased sales of red meat products to athletic persons.

NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA CPC HAS OUTLINED PORK PRODUCER’S PRIORITIES FOR THE 2019 ELECTION

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

Global public health organization showcases services for Canada’s growing and fast-changing food industry At home, the pork industry creates both thousands ofaccredited farm andInternational indirect jobs across the country, and sets NSF International in Canada recently launched a new Association for Continuing the benchmark for sustainability quality theHACCP, world website - www.nsfcanada.ca - to give Canada’s growing Education and Training (IACET) site.and Topics include over. and complex food and beverage industry easy access food safety and quality, GFSI benchmarked standards, to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s global services dedicated to food safety and quality.

Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate these challenges, including certification and auditing, consulting, technical services, education, According to the Canadian Pork training Counciland (CPC), the food and label compliance, packaging, and product and federal government has a key role to play in the process development.

regulations (including FSMA), food science, food packaging, food microbiology and ISO standards.

Training The 2019 Federal Election is set to kick off onmodalities or before include eLearning, on-site, customized and open enrolment.

October 21.

Additionally, the website includes information about management system registrations for the food, automotive, For more information, visit https://www.cpc-ccp. environmental, information security, medical devices, com/2019-federal-election-priorities aerospace and chemical industries, as well as for Ontario drinking water programs.

Callout: “We’re putting an emphasis on maintaining Visit the new Canadian website at www.nsfcanada.ca to review the food competitive access to overseas markets and to further safety services capabilities video, find a list of Canadian food experts, learn tradeand with Asian regions specifically”. aboutdevelop upcoming events global news releases, a question YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read an FAQ.

success of a thriving pork industry in Canada, and that NSF International’s information all begins with settingCanadian prioritieswebsite for theprovides fall election on the following services: campaign.

Certification & auditing: Third-party food safety audits are integral components of The and CPCcertifications, outlined thewhich four African Swine Fever (ASF) supplier selection and regulatory compliance. Accurate priorities as Prevent, Prepare, Respond, and Recover. audits are the first step toward successful verification ASF of has had a devastating impact on providing pork production a company’s food safety system, improved the world over, with some countries industry all but brand protection and customer confidence. Certifications decimated. and audits are available for animal and produce in the agriculture industry, GFSI certification and management system Canada hasregistration. been vigilant in its efforts to stem the

A full-service team approach providing virusConsulting: from infecting Canadian herds, yet producers technical expertise anda insight for aPork wide range are calling forresources, Ottawa to establish Canadian of food safety and quality services.

NSF International Promotion Research Agency and Effective Business Risk provides finished product inspection testing for food, Management Programming. packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services At the same time, with the adversely from on-site temporary or markets permanent technicalaffected staffing by unstable trade relations, CPC and its member placements, and various types of consulting.

producers areservices: putting an emphasis on maintaining Technical A one-stop solution for food product competitive access to overseas markets andtoto further compliance and formulation, from concept finished develop trade with Asian product, including food regions and labelspecifically. compliance, packaging, product and process development, and shelf-life and productCanada evaluation.

Currently, is one of the highest grossing pork

producing in the world, over $ 4 Trainingcountries and education: Trainingrepresenting for the global food and beverage industry across the supply chain as an billion worth of domestic and foreign exports annually. meatbusiness.ca

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FCC REVIEW SUGGESTS MODEST INCREASE IN FARMLAND VALUES Average farmland values in Canada are showing only modest increases for the first half of 2019, according to a review by Farm Credit Canada (FCC).

The national average for farmland values fell from a 6.6% increase in 2018 to a 3% increase in the first half this year. If this increase holds steady for the remainder of this year, it will be part of a five-year trend of softening growth in average farmland values.

“There might be some minor market adjustments along the way, but the days of sharp increases in farmland values have been replaced by more modest growth,” said J.P. Gervais, FCC’s chief agricultural economist.

FCC’s review showed lower increases from 2018 in British Columbia (2.7%), Alberta (1.6%), Saskatchewan (2.9%), Ontario (3.3%) and Quebec (2.8%), while Manitoba (6.2%) showed a slightly higher increase.

Publicly reported transactions in four Atlantic Provinces have yet to be reviewed and assessed.

Average farmland values have increased every year since 1993; however, increases were more pronounced from 2011 to 2015 in many different regions. In 2015, the average increase was 10%, and since that year, Canada has seen more moderate single-digit increases in average farmland values.

“Now we appear to be moving into a time of cautious buying, where producers are focusing more on improving productivity and building resilience in their operations,” Gervais said.

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producers are in a position to purchase land if it’s part of their business plan.

“The balance sheet is still strong, but uncertainty in markets and the fact that farmland values have climbed rapidly in the past may be giving some producers reason to pause,” Gervais said. “Others may have already expanded their operations and are now exploring other strategic investments.”

Changes in commodity prices, uncertainty around global trade and some challenging weather conditions may have also taken some of the steam out of farmland values. Producers can prepare for these unpredictable circumstances by maintaining a risk management plan while remaining focused on the big picture, according to Gervais.

“Demand for Canadian agricultural products is projected to remain strong at home and abroad in 2019-20, so there is a long-term positive future in agriculture,” he said.

By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture achieve their goals.

For more information, visit the FCC Ag Economics blog post at www.fcc.ca/AgEconomics.

SMALL BUSINESS IS EVERYONE’S BUSINESS: MAKE YOUR VOICE HEARD IN THE FEDERAL ELECTION Running a small business is often about making sacrifices: you take the risks, work the long hours, deal with mountains of red tape and pay yourself last, after your employees, suppliers and taxes, so you can provide jobs and keep local economies running.

As Canada prepares to vote in the upcoming federal election on October 21, CFIB is putting the people who make these sacrifices front and centre asking all parties to include our recommendations in their election platforms. To this end, we asked our members what their biggest concerns are and which measures would help them most, and created a Small Business Platform to provide all parties with small business friendly ideas. We’ve spent the past few months presenting the platform to Liberal, Conservative, NDP and Green Party politicians and will continue to meet with candidates, study the platforms of the various parties and hold them accountable to their promises after the election.

But as small business owners, employers and community members you also have an important part to play. In the coming months, you may be approached by your local candidates or their representatives. You will see ads, lawn signs, petitions, polls, debates and opinion pieces. I encourage you to engage with the candidates, to make your challenges known and to ask them what they’re going to do to support your small business.

After all, 99.9 per cent of Canadian businesses have fewer than 500 employees and 86 per cent have fewer than five. Small businesses were responsible for 85 per cent of the net new jobs created between 2013 and

2017. Small business is everyone’s business and we want the federal parties to take notice.

Here are three questions you should ask your local candidates before the election. You can count on us to do the same!

WHAT IS YOUR PLAN FOR TACKLING THE AFFORDABILITY CRUNCH FACING You are facing a slew of tax increases in the coming years. On top of this year’s Canada Pension Plan increase, premiums for employers and employees will continue to rise for the next six years.

The federal government also imposed a new carbon tax in Manitoba, Saskatchewan, Ontario and New Brunswick, and will roll it out in Alberta at the start of next year. Small businesses are on the hook for almost 50 per cent of the carbon tax revenues, but will only get a sliver of their costs back in rebates – if they spend a substantial amount of money on certain projects.

Our members have told us that these new costs are unsustainable, so we’re asking all parties to halt further increases to the CPP, as well as to repeal the federal carbon tax and work with the provinces on approaches to climate change that do not negatively impact small businesses.

HOW WILL YOU HELP BUSINESSES LIKE MINE FIND THE RIGHT PEOPLE FOR THE JOB? Small businesses are facing an unprecedented labour shortage – 435,000 jobs went unfilled for at least four months in the first quarter of 2019 due to a lack of interested and qualified candidates. In fact, vacancy September/October 2019 100TH ISSUE | March/April 2019

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rates were highest in construction (4.9%), personal services (4.7%) and agriculture (3.8%). All those job vacancies lower businesses’ productivity, cost them new opportunities and block their ability to grow.

Of course, you can probably recruit less experienced workers and train them up for the jobs you need filled, but that’s a big investment of time and money. The government can help offset some of those costs – and incentivize hiring young people – by introducing a training tax credit.

The immigration system could also help alleviate the labour shortage, but it needs to be retooled for today’s labour market. An “Introduction to Canada Visa” like the one we’re proposing in this election would create a pathway to permanent residency for temporary foreign workers at all skill levels, bringing more prospective staff into the workforce.

HOW WILL YOU MAKE SURE SMALL BUSINESSES ARE AT AN EQUAL FOOTING IN THE FINANCIAL INDUSTRY? Accessing financing is a major barrier to entry and growth for small businesses, as many are denied loans by the big banks. In the last few years, the financial industry has come out with a lot of cool innovations that have great potential for small firms, including online lending. However, we don’t want to see these new players charge you usurious rates or lock you into unfair contracts.

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CFIB is calling on the government to ensure that there is a fair dispute resolution system in place for financial industry incumbents and newcomers administered by an independent, not-for-profit entity that has the ability to resolve complaints.

GET INVOLVED CFIB takes its commitment to non-partisanship very seriously. We work with all parties to ensure the voice of small business is heard and we commend good policy and criticize bad policy when we see it, no matter where it comes from. To that end, I encourage all small business owners to stay informed and share their concerns with the federal parties in the lead up to the election.

Visit cfib.ca/election for more information on how you can get involved.

Dan Kelly is president of the Canadian Federation of Independent Business and lead spokesman and advocate for the views of CFIB’s 110,000 small and medium-sized member businesses (7,200 agri-business members) across Canada.

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

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