Our March 2020 Issue

March 2020

JBS Canada Certification Confirms Sustainability Achievements

2020 Outlook: Canada’s Red Meat Sector

Alberta Beef Industry Releases Competitiveness Study Results

Three Disruptors to Watch in 2020

CRSB Semi-Annual Meeting - Save the Date!

Leadership through Collaboration – CRSB Using Genomics to Understand Antimicrobial

Government Supports New Pilot Risk Management Tool

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March 2020

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JBS Canada Certification Confirms Sustainability Achievements 2020 Outlook: Canada’s Red Meat Sector

By Leigh Anderson

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Alberta Beef Industry Releases Competitiveness Study Results Three Disruptors to Watch in 2020

Leadership Through Collaboration: Canadian beef industry has achieved 75% of its sustainability strategy goals since 2016

Using Genomics to Understand Antimicrobial Resistance Government Supports New Pilot Risk Management Tool Canadian Food Inspection Agency Receives Paperweight “Award” During CFIB’s Red Tape Awareness Week

By Marilyn Braun-Pollon

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March 2020 Volume 20 Number 1

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR

JBS CANADA CERTIFICATION CONFIRMS SUSTAINABILITY ACHIEVEMENTS

Scott Taylor publishing@meatbusiness.ca

Facility now certified to CRSB’s Sustainable Beef Processing Standard

DIGITAL MEDIA EDITOR

JBS Canada has achieved another milestone in its ongoing commitment to sustainable food production. The beef processing facility in Brooks, AB is now a Certified Sustainable Beef Processor, after successfully completing a thirdparty audit according to the Sustainable Beef Processing Standard as set by the Canadian Roundtable for Sustainable Beef (CRSB).

Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Dr. Sylvain Charlebois, Mario Toneguzzi, Sebastien Pouliot, Marilyn Braun-Pollon CREATIVE DIRECTOR Patrick Cairns Canadian Meat Business is published six times a year by We Communications West Inc.

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As one of the largest beef processors in Canada, the certification further demonstrates JBS Canada’s commitment to advancing sustainability in the Canadian beef industry.

“Over the past five years, we have set some very aggressive targets in our own 2020 Sustainability plan, and with a lot of hard work, we have met or exceeded our goals,” said David Colwell, President, JBS Canada. “The CRSB certification is affirmation that we are doing our part to advance sustainable beef production, and we now invite retail, food service and quick service entities considering a beef sustainability claim for their products, to look to JBS Canada in supporting their sustainable sourcing goals,” noted Colwell.

E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca

The CRSB Sustainable Beef Processing Standard ensures the plant has met requirements related to the five key principles defining sustainable beef:

1.

Natural resources

2.

People and community

3.

Animal health and welfare

4.

Food integrity

5.

Efficiencies and innovations

Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue.

The CRSB standard is measurable, based on science and expert opinion, and addresses key concerns around the sustainability of beef processing in Canada.

©2018 We Communications West Inc. All rights reserved.

“We are especially proud of programs like water management and our animal handling system designed by renowned welfare specialist Dr. Temple Grandin,” notes Colwell. “Our aim is always to responsibly meet the needs of today, while improving the ability of future generations to do the same.”

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“The CRSB certification provides confirmation that JBS Canada is responsibly and transparently doing what it says it is doing each and every day,” says Anne Wasko, Chair of the CRSB and rancher from Eastend, SK. “As one of CRSB’s valued founding members, JBS has worked closely with us and those across the beef value chain to identify and set industry-wide sustainability goals and standards. We look forward to continuing to work with the JBS Canada team in furthering their sustainability goals,” she added.

The certification of JBS Canada further strengthens the Canadian beef industry’s commitment to sustainability and contributes to better understanding of sustainable practices across the beef supply chain.

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2020 OUTLOOK: CANADA’S RED MEAT SECTOR

By Leigh Anderson, Senior Agricultural Economist, Farm Credit Canada

Farm Credit Canada (FCC) Ag Economics helps you make sense of these top economic trends and issues likely to affect your operation in 2020: • African Swine Fever’s disruption of livestock and meat markets • Trade tensions’ influence on agri-food markets • Robust global and domestic red meat demand • U.S. growth in beef and pork production • Global economic impact of coronavirus Profitability for the red meat sector is expected to be positive in 2020 due to robust export demand. The decline in global meat protein supplies caused by African Swine Fever (ASF) remains a story to watch in 2020. The U.S. and China agreed to a phase one deal that could raise North American prices. But the implementation of the agreement remains vague.

The supply response of U.S. livestock producers will also determine livestock prices. In short, the volatile environment of 2019 is expected to extend throughout 2020.

Futures markets suggest prices for most Canadian cattle and hogs will remain around their five-year average, but higher than the 2019 average.

Profitability for the cattle sector is trending up.

Profitability in the cattle sector is expected to be slightly above break-even through 2020. Strong demand for feeder cattle will support profits for cow-calf operators, while feedlot operators will see improved profitability compared to 2019.

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Live Canadian cattle prices averaged C$150 per cwt for fed steers in 2019, generating a 10.8% estimated increase in receipts from 2018. We’re projecting prices for Canadian fed steers to average C$148 per cwt in Ontario and C$155 per cwt in Alberta in 2020. Similarly, prices for Canadian feeder cattle (550 lb and 850 lb) are expected to be in the C$218 – C$228 range. Eastern Canadian bids for cattle are projected lower as the industry deals with wider basis levels due to a decline in slaughter capacity. U.S. beef production grew 1.0% in 2019, significantly lower than the 3.1% projected at the beginning of the year by the USDA. Projections call for U.S. beef production to climb 1.2% in 2020.

Our preliminary estimate indicates Canadian beef production grew 2.8% in 2019, as more cattle were fed and slaughtered in Canada in 2019. Canadian packer utilization rates continued to be strong. We estimate that the ratio of beef slaughtered (in federally inspected facilities) relative to capacity increased in the second half of 2019: 94.8%, up from 90.5% during the first six months, and well above the five-year average of 86.5%.

Several factors explain strong packer utilization: • Robust demand for beef coupled with strong process ng margins • Beef processing plant closures in eastern Canada • A major U.S. beef processing plant was idle for a few months • Higher imports of U.S. live cattle into Canada • Increased culling rates in Canada due to unfavourable weather conditions

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We expect the Canadian processing sector to continue operating at high capacity as the January 1, 2020, cattleon-feed in Canada was estimated to be 10.7% higher compared to January 1, 2019, and 20.4% higher than the five-year average.

Our grains and oilseeds outlook for 2020 suggests average feed prices will be relatively similar to last year.

While unfavourable weather conditions increased feed costs in 2019, both corn and feed barley prices are expected to be slightly lower in 2020. The combination of slightly weaker feed prices, along with slight improvements in livestock prices, means improvements in the feed ratios for cattle and hogs supporting profitability in 2020. Yet, profitability is expected to remain below the five-year average.

capacity. The good news is that the larger U.S. pork production is more than offset by the strong demand arising from the ASF-led decline in Chinese pork supply.

The 2019 temporary export restrictions into China likely explain how pork slaughter capacity stood at 85% in 2019, slightly below the five-year average of 88%. As U.S. hog slaughter approaches capacity throughout 2020, we expect Canadian slaughter utilization will rise. Boosting Canadian exports to China and other Asian countries will be crucial in 2020 to supporting the red meat sector. U.S. pork exports to China increased in 2019 despite China’s retaliatory tariffs on U.S. pork.

Reducing tariffs on U.S. hogs into China could go a long way in supporting lean hog prices in North America.

Trends to watch in 2020

Hog prices supported by ASF, yet tariffs and large U.S. production lower upside The 2019 variability in hog profits is expected to carry into 2020. We’re forecasting 2020 average Canadian hog prices between C$78 - C$81 per cwt, a 3.4% increase from 2019. U.S. pork production grew by 5.0% in 2019, and the USDA projects will increase by 4.5% in 2020. The continued expansion of the U.S. hog sector has raised concerns relative to the U.S. slaughter

1. Food preferences shift, but domestic demand for red meat remains robust Beef retail prices grew 3.5% in 2019 compared to 0.7% for pork and 3.0% for chicken. The global gap between pork supply and demand is expected to lift prices for animal proteins. Although retail Continued on page 8

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Beef retail prices grew 3.5% in 2019 compared to 0.7% for pork and 3.0% for chicken. The global gap between pork supply and demand is expected to lift prices for animal proteins. Although retail sales of tofu, meat and dairy alternatives climbed by 25% in 2019 (Nielsen data), and are expected to keep growing, they’re still small compared to sales of animal proteins.

The FCC Canadian beef and pork demand index remained strong in 2019. We expect continued robustness as beef and pork remain competitive from a price standpoint relative to substitutes. Convenience, solo-eating, snacking and quality will continue impacting food purchasing decisions.

2. China’s ability to rebuild its hog herd The FAO estimated that China’s pork production declined at least 20% in 2019. Various forecasts call for at least a further 15% decline in 2020, creating a potentially large gap between demand and supply.

China’s pork retail inflation reached over 100% YoY in 2019 and pork imports are expected to increase considerably in 2020. Despite ongoing consolidation, Chinese hog operations are rebuilding. A faster-thanexpected rebuild of the Chinese hog herd could lead to demand for red meat being below expectations. A vaccine to ASF developed in the U.S. was recently

proven successful, yet it’s unknown how fast it can be deployed commercially.

China’s overall impact on global agricultural markets cannot be understated. Consider these statistics: China consumes 27% of all global meat, with 62% of China’s meat consumption being pork. Historically, China only imported 3% of its pork requirements, given its large production capacity. The pace of the rebuild is essential when anticipating the impact of ASF in demand for red meats.

3. China-U.S. phase one trade agreement can have mixed outcomes for Canadian livestock producers China agreed to import an additional US$32B of ag products from the U.S. over the 2017 import levels in 2020 and 2021. But here’s the caveat - purchases will be based on market conditions, so it’s unclear how binding purchase commitments will be.

Removing the Chinese tax on U.S. pork exports could lead to a considerable price gain for live hogs. The agreement also includes harmonization of trade rules in the beef sector that could ultimately be extended to Canadian exporters.

But not everything in the agreement is positive. It can leave Canadian exporters out of the profitable Chinese market and scrambling to fill demand coming from markets that the U.S. exporters desert.

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R E L I A B L E F O O D P R O C E S S I N G M AC H I N E S W W W . B I R O S AW . C O M

ALBERTA BEEF INDUSTRY RELEASES COMPETITIVENESS STUDY RESULTS Collaboratively, the Alberta Cattle Feeders’ Association (ACFA) and the Alberta Beef Producers (ABP) conducted an industry competitiveness study to determine the ability to profitably maintain or enhance market share of the Alberta beef industry in relation to its American counterparts.

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The report established that the industry is and has been competitive and remains capable of maintaining competitiveness into the future. There are, however, factors and trends that have the potential to decrease competitiveness if they continue.

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One concern is that in recent years, there have been added costs and regulatory measures imposed on the industry from the three levels of government.

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“For the fed cattle industry, the most significant operating cost is feed,” says Janice Tranberg, CEO of ACFA. “Alberta has had a historical advantage due to barley, but with recent weather impacts, will that advantage remain in our favour? Then, after stripping away feed costs, the long-term margins in the industry are near breakeven. If pending taxes and regulatory policies are put into place in the next year, they translate into loses and potential downsizing of the whole industry.”

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The report includes these factors as: labour, utilities, fuel, taxes, insurance and other supplies. These costs are relatively small compared to the feed costs but in a competitive narrow margin business, they are critical.

“The big question for the cow-calf producer is why is the herd not growing in Alberta? Opportunities for higher returns in other sectors, farmland prices, and the cost of equipment and labour make entering the industry more difficult,” says Rich Smith, Executive Director of ABP. “ABP and ACFA are continually working with governments on producers’ behalf to reduce regulatory burden to keep them profitable and the industry not only viable, but growing.”

The comprehensive final report, completed by Serecon Inc. can be found at https://www.serecon.ca/

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THREE DISRUPTORS TO WATCH IN 2020 Climate change, protectionism and automation – three forces Bloomberg identifies as major disruptors to the global economic outlook – also appear among the most significant trends to watch in the Canadian agrifood supply chain for 2020, according to Farm Credit Canada’s (FCC) economics team.

These trends have the potential to not only disrupt the global economy, but they could also have a significant impact in shaping Canada’s agriculture and food industry outlook, said J.P. Gervais, FCC’s chief agricultural economist.

“We call them disruptors for the simple fact that these trends could significantly change the way Canadian farm operations, agri-businesses and food processors do business at home and around the world,” Gervais said.

“The test is how they will adapt to take advantage of the opportunities or mitigate the challenges that come with each of these trends.”

Gervais said the disruptors come with the potential to promote or inhibit growth in Canada’s agriculture and food industry.

CHANGING WEATHER PATTERNS IMPACT PRODUCTION AND DEMAND

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According to Canada’s 2019 Climate Change Report, Canada is warming at twice the rate of the rest of the world. Increases in both annual and seasonal mean temperatures may extend growing seasons with additional hotter days. However, the potential for warmer weather also increases potential for more rain during seeding and harvest, which makes controlling disease and pests more challenging. It also brings a higher likelihood of extreme weather events, such as floods and droughts.

“As we’ve witnessed in recent years, weather disruptions can lead to production losses across major agriculture producing regions, and this has serious and rippling repercussions for Canadian agriculture and food sectors,” Gervais said.

Unstable growing conditions worldwide also raise the importance of food security. Individual nations may increase their efforts to stockpile, leading to more intense price competition for available crops. This could benefit Canada’s agriculture exports, according to Gervais.

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TRADE AGREEMENTS: PROTECTION

AGAINST PROTECTIONISM

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THE BEST DEFENSE IS A STRONG OFFENSE

Protectionism contributes to market volatility, which has an overall detrimental impact on the world economy. This would appear to be especially true for Canada, which was the world’s fifth largest exporter of agriculture commodities in 2018 behind the United PROMOTING THEandHEALTH BENEFITS States, Brazil, the Netherlands China.

AUTOMATION AND INNOVATION FUEL FUTURE SUCCESS

OF MEAT AND POULTRY

By Ronnie P. Cons

However, Canada has done extremely well in Red meat strong is often wrongly portrayed as being establishing trade relations in a number of key unhealthy. Even chicken has been getting attacked by some inthanks the media as unhealthy orgetting not environmentally friendly. markets, to a long-held focus on trade agreements in place, according to Gervais. And while Vegan, fish and other issues non-meat diets haveinbeen proposed more market access could arise 2020, it’s just as liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach. healthier alternatives.

The result of this onslaught of as possible that market disruptions could create negative new meat messages has influenced many families to cut back on Iron found in vegetables is harder to absorb than the iron opportunities for Canadian producers and exporters. their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers “Our agreements buffer Canada from some wanttrade what is best for theirhelp health and that of their families. also aware thatthat a lotgrowing of false information is out there ofThey the are negative impact protectionism as such, are world open toeconomy,” scientific facts that can correct their isand having on the he said.

“When misconceptions. tariffs are imposed or borders close for any number provides an opportunity retail of meat departments ofThis reasons, having a broaderforrange export markets to implement an instore ‘Healthy Meat Facts’ nutritional allows Canadian exports to be re-allocated, rather than campaign to set the record straight and convince their simply reduced.”

customers that meat and poultry are actually good for one’s health and that they should increase rather than decrease Bottom line, protectionism in an evolving and uncertain their purchases of it. The campaign outlined below can have international trade environment shouldn’t have a a direct impact on sales:

significant impact on Canada’s long-term growth Start by displaying instore posters promotingexport the nutritional potential.

The main reason, according to Gervais, is and that value of meat. They should be innovative, eye catching be designed specifically contradict any meatand myths.

The food demandtohas grown both domestically globally comments should be literature basedThe quoting research and is expected toallcontinue in 2020. animal protein papers or MDs for maximum effect. Various posters should sectors could even see growth accelerate based on the be made - each with a brief but powerful message covering evolution of African Swine Fever in China and the rest of one theme. the world.

Posters can convey the following healthy meat fact messages: Despite global economic turmoil, the outlook for 1. Let’s IRON out the Truth on Meat!

Canadian agriculture and food in 2020 remains “You would need to eat a massive amount of spinach to positive due tocontent) ongoingininvestments technology equal (the iron a steak,” saysinChristopher Golden, and innovation.

These investments enable Canadainto an ecologist and epidemiologist at Harvard University produce a wide range of commodities and processed Cambridge, Massachusetts.

(As quoted by nature.com in the article which ‘Brain foodeating’.)maintain its competitive foods, helpsclever the country position in thetoworld export market, according to of 18 For a woman receive her recommended daily intake mg of iron, she would need just 300 grams of cooked bovine Gervais.

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

2. Eat Meat for a Healthier Brain!

Being deficient in the micronutrients found in meat have been linked with low IQ, autism, depression and dementia says Dr. Charlotte Neumann, a paediatrician at the University of California, as quoted in the article ‘Brain food- clever eating’.

Zinc is crucial for learning and memory. Vitamin B12 preserves the sheaths that protect nerves.

3. Boost Your Immunity with Meat!

Due to its antioxidant powers, zinc is involved in creating antibodies to fight free radicals that increase our risk for Advances made possible due to automation in both chronic diseases.

agriculture production and food processing reduce 4. Power Your Muscle Growth with Meat! costs.

The protein in meat helps build and repair body tissues.

Muscles are made of protein. That is why athletes who are

In processing, helpstheir solve theconsumption. long-term building muscleautomation strength increase meat challenge labour shortages, especially for skilled The proteinofand zinc found in meat are important for muscle growth and repair. manufacturing labour. In agriculture, Canadian producers are Complete adopting various 5. Meat is the Protein! technologies that help Meat contains all of the nine essential amino acids that your reduce costs and increase efficiencies, while managing body cannot make by itself.

Say ‘hello’ to histidine, leucine, highly variable growing conditions. isoleucine, lycine, methionine, phenylalanine, tryptophan, threonine, and valine. That is why meat is called a complete With interest rates expected to remain low, the protein.

environment for continued investments in innovation 6. Eat Meat for a Healthy Heart! and technology looks positive, Gervais said.

Meat contains lots of the B vitamins needed for the

production of hormones, red blood cells and for the proper

“Canadian operations have been a bit more functioning farm of your nervous system. cautious about making new investments, the Say ‘hello’ to niacin, folic acid, thiamine, biotin,given panthothenic recent decline in net income,” he said.

“But they acid, vitamin B12 and vitamin B6. They are all found inalso meat. know that market conditions will eventually improve The line that ‘the best defense is a good offense’ does not and apply that innovation a long-term investment that only to sports. It is also applies to countering negative eventually off.” meat health pays myths.

Implementing an instore ‘Healthy Meat Facts’ nutritional campaign to set the record straight on meat and poultry. agriculture It is a good way to go on the offensive by using By sharing economic knowledge and education your customers and increasing your sales..

forecasts, FCC provides solid insights and expertise to

Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of help those in the business of agriculture achieve their meat and poultry. He can be reached at RCons@CCpacking.com.

goals. For more information and insights on the top three disruptors for 2020, visit the FCC Ag Economics blog post at fcc.ca/AgEconomics.

22 CANADIAN MEAT BUSINESS September/October 2017

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meatbusiness.ca

DF: I don’t think being on the island has really impacted us negatively one way or the other. We’ve traveled a lot, met a lot of other farmers and livestock producers in other parts of Canada, and we all seem to have the same issues and same concerns.

CMB: I understand that your farm was the first in Atlantic Canada to be involved in the TESA program.

DF: Yes, I think we were the first farm east of Ontario as far as I understand.

I’m not sure why the eastern associations wouldn’t have previously nominated anybody because there are many farms here on PEI doing every bit as much as we are as to attain a high level of sustainability. Anyway, we were very surprised when the PEI Cattleman’s Association nominated our farm.

CMB: And then you were attending the Canadian Beef conference in Calgary and you won.

The Canadian Roundtable for DF: Yeah!

That was a very moment Sustainable Beef (CRSB) will benice holding for us. But I don’t like to use the its Semi-Annual Meeting from March word win actually. However, being 31-Aprilrecognized 1, 2020 inforCalgary, AB. our commitment was a real honour. If you want to know

This event will provide an opportunity the truth, it was a pretty humbling for all ofexperience. the CRSBAs committees I said to CBCand when they phoned me after the conference, Council to meet to discuss progress,I was just floored, couldn’t as believe opportunities andreally challenges, wellit. as openCMB: discussion topics So nowon thatthe youhot have been of recognized, do you think that will sustainability for the CRSB this year. draw more attention and garner more nominations of Atlantic All are welcome toout attend and Canada going forward?

participate in the discussions as we DF:our Absolutely. gotten a lot continue journeyWe’ve of continuous of good press highlighting thein island improvement and building trust the cattle industry. I’m positive you’ll see sustainability of Canadian beef.

more farms in our neck of the woods nominated next year. And I have to give For more visit https://crsb. theinformation, Canadian Cattleman’s Association ca/ 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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LEADERSHIP THROUGH COLLABORATION:

CANADIAN BEEF INDUSTRY HAS ACHIEVED 75% OF ITS SUSTAINABILITY STRATEGY GOALS SINCE 2016 The Canadian Roundtable for Sustainable Beef (CRSB) has released a report outlining progress against its 2016 National Beef Sustainability Strategy, with 86% of the environmental, 75% of the social and 83% of the economic action items completed or in progress.

“We are extremely proud of the work that our multistakeholder membership and industry stakeholders have accomplished together over the past three years, which demonstrates the value of collaboration in achieving our continuous improvement goals, says Anne Wasko, Chair of the CRSB and rancher from Eastend SK. “These achievements have established Canada as a global leader in beef sustainability, and we look forward to continuing to work together to build trust and transparency about practices that enhance the environmental, social and economic sustainability of beef production in Canada.”

If 100% of the activities were completed at the halfway mark it would indicate that the goals set were not ambitious enough. This Interim Report provides an opportunity to re-focus efforts to ensure all goals and activities are fully completed by 2023, in time for the next full National Beef Sustainability Assessment. Some areas that can use more partnerships and collaboration include: communicating the role of technology and innovation in relation to the environmental, social and economic benefits to the beef industry; research and adoption of packaging that enhances product life and reduces food waste; dialogue regarding how label messaging can enable reductions in food waste; and further awareness of the Code of Practice for the Care and Handling of Beef Cattle.

The CRSB has built a trusted go-to forum on beef sustainability that focuses on three main pillars: Sustainability Benchmarking, a Certification Framework and Sustainability Projects. Multistakeholder partnerships have been key to achieving progress against sustainability goals and fostering 14 CANADIAN MEAT BUSINESS 14

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continuous improvement. These include programs such as the “Species Habitat Assessment and Ranching Partnerships” and others that provide resources and expertise to producers on range, riparian and wildlife assessments, and habitat enhancement project implementation. They support research that increases the understanding of the relationship between beef production and water. Several members are involved in the Canadian Wetlands Roundtable that is committed to the creation of a national wetland inventory.

“Beef raised in Canada is done using the best practices in the world and Ducks Unlimited Canada recognizes the role ranchers play in sustainable agriculture every day, says Emily Lowe, Regional Agrologist – Beef Industry at Ducks Unlimited Canada. “We will continue to support and work with the CRSB and others in the Canadian beef industry to emphasize the importance of having cattle on the landscape for the betterment of our wildlife, our water, our grasslands and our overall environment.”

Check out the report’s Executive Summary that summarizes key progress on the sustainability strategy’s action items in environmental, social and economic sustainability. A full report is available at crsb.ca/ sustainability-benchmark detailing how CRSB and the commitment of its members and stakeholders to continual improvement is positively impacting the sustainability of Canadian beef.

ABOUT THE CRSB Established in 2014, the Canadian Roundtable for Sustainable Beef (CRSB) is a collaborative, multi-stakeholder initiative focused on advancing environmental, social and economic sustainability in the Canadian beef industry. The CRSB drives recognition and continuous progress in beef sustainability through the National Beef Sustainability Assessment and Strategy, the Certified Sustainable Beef Framework and Sustainability Projects. Learn more at crsb.ca.

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practices into our design, resulting in outcomes that have been inspiring and empowering to our employees.

We emphasize high quality employee contributions, regardless of origin or background - our employees represent 47 different nationalities, roughly one quarter of the countries in the world. Our inclusive approach founded on the highest ethical standards results in a collaborative devotion to excellence from an enthusiastic team brimming with ideas. We continually strive for everhigher standards of sustainability, safety and responsibility.” ~ Cam Daniels, Harmony Beef Ltd.

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

“Since 2016, baseline inventories have been completed [in Alberta] with a total of 24 ranches and grazing associations covering 189,000 acres, and 32 habitat enhancements have been implemented as part of their Habitat Conservation Strategies. These projects are producer-driven and highlight the benefits of “The Beef Cattle Research Council (BCRC) invests in collaborative stewardship programs building on local research projects to provide scientific evidence to knowledge and the positive impacts they can have for support the utilization and continued improvement of biodiversity and wildlife habitat.” ~ Brad Downey, Sr. certain technologies or production practices. Some Biologist – Alberta Conservation Association projects currently underway evaluating the Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest include such facility economic and environmental impacts associated

By Amy Reid, Peace Arch News “As a certification body for the CRSB, Verified Beef with certain technologies. These projects will assist in so as to not emit odours. while there contributes is an operational federally licensed beef processing facility is in the works Production APlus (VBP+) verifies animal care practices of communicating how And technology to changes 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. Canadian beef producers through multiple methods. inonly land, water, feed use and what the associated cost process a limited number of cattle.

“There’s a new building coming forward, a new abattoir, I These uphold the intent of the Code of Practice for the : benefits are to industry and the environment. It is Chris Les is general manager of Meadow Valley Meats, think that’s the French pronunciation of slaughterhouse,” Care and Handling of Beef and critical that behind technologies be used to support the company the project.can Meadow Valleysafely Meats is said Councillor MikeCattle, Starchuk.

“Sowere Surreydeveloped will have a seeking a Canadian Food Agency license for newer facility with a better so people will have using National Farm Animal Carecapacity Council’s Animal Care producer viability.” ~ Inspection Andrea Brocklebank, Executive the proposed abattoir, to become a federally registered ability to not have to ship our an animal to Alberta of to have Assessmentthe Framework.

Through verification Director – Beef Cattle Research Council meat establishment and expand the operation. This would it processed. The applications have gone through the animal careAgricultural practices,andVBP+ is helping both Canadian allow the meat products to be transported beyond B.C.’s Food Sustainability Advisory Committee.” beef producers and our retail and foodservice partners “Loblaw is committed to developing solutions boundaries.

The facility is proposed on a 25-acre property within the maintain consumer in beefatproduction.” and play important bringing positive “Ourwe focus is onan trying to bring a role more in efficient, sustainable Agriculturaltrust Land Reserve 5175 184th St. ~ The planned local product to theand market, realizing we can do that now 30,000-square foot Manager abattoir in Cloverdale would process up environmental Shannon Argent, Business – Verified Beef social change, both nationally as in a very limited sense,” said Les. “I caution people when 100 head of cattle per day.

Production to Plus well as in the local communities where we live and talking to them and they say, ‘What a big plant, that’s going According to a city report, that would make it larger than work.

We you have made some major commitments, to go allow to go mainstream.’

Well, yes, if you look any other processing facility in B.C.. But it would still be “At Harmony Beef, we had the privilege to design a such reducing waste 50% 2025 and in theas context of B.C.,our but food this is still a very nicheby plant small by industry standards, compared to the largest meat and we’ll serve niche industry for producers for theThe CRSB’s world leading beef plant scratch and to3,000 assemble reducing our acarbon footprint 30% byand2030. processing plantsfrom in Alberta that process heads of market. It’s certainly not going to be a monstrosity of a plant cattle per day.with local suppliers and partners. a unique supply chain sustainability strategy includes action items focused on but it’ll be a big upgrade from the site currently.”

The proposed facility would be fully enclosed and designed We embedded CRSB standards, research and best reducing Continued on page 32

meatbusiness.ca

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USING GENOMICS TO UNDERSTAND ANTIMICROBIAL RESISTANCE Antibiotics play a crucial role in animal and human health, but their frequent use is linked to antimicrobial resistance, which severely hinders the effectiveness of these drugs in combating disease.

To understand how livestock and food production systems contribute to antimicrobial resistance, Agriculture and Agri-Food Canada (AAFC) research scientist Dr. Ed Topp is coordinating a research collaboration involving scientists from across the government.

“Bacteria are found in people, in animals, as well as in the environment, and they circulate easily from one to the other. That is why we need the ‘One Health’ approach to understand whether and how antibiotic use in food production is contributing to AMR in humans,” says Dr. Topp. “To do this we need to compare bacteria collected from sick people in hospitals, from animals used for food, and from the environment where these animals live. If they are similar then there is a greater chance that one can infect another.”

Scientists have identified a specific plasmid, a small DNA molecule within bacteria, that makes Salmonella Heidelberg resistant to antimicrobes found in chicken and retail poultry. This specific strain of salmonella bacteria has been known to make humans sick.

The team also looked at whether bacteria found in beef production could affect people, other animals, and the environment. Results so far indicate that Enterococcus bacteria, the bacteria found in the human gut and bowel, clearly differ between humans and cattle. This suggests that these bacteria found in cattle are unlikely to make people sick; good news for producers and Canadian consumers.

This five-year research project will ultimately improve the understanding of antimicrobial resistance that are of concern to both animal and human health.

KEY BENEFITS • AAFC is coordinating a five-year research project aimed at understanding antimicrobial resistance that is a concern to both animal and human health.

This collaboration, through the federal Genomics Research and Development Initiative, is already making significant progress after only three years. The team is using the Integrated Rapid Infectious Disease Analysis software recently developed by federal scientists to analyze large amounts of DNA sequences of resistant bacteria.

• Using the Integrated Rapid Infectious Disease Analysis software, researchers are better able to detect and monitor antibiotic resistant bacteria throughout the food chain and help scientists determine which of the resistant bacteria found in poultry, swine, beef and the environment can affect humans.

Using this new software enhances Canada’s ability to detect and monitor resistant bacteria throughout the food chain. It also helps scientists to better understand which antibiotic resistant bacteria found in poultry, swine, beef, and the environment can affect humans.

• Enterococcus bacteria differ between humans and cattle. That means bacteria that grow in the guts of cattle are less likely to get people sick.

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Bacteria will circulate between people, animals and the environment.

Researchers can detect and monitor resistant bacteria throughout the food chain to help them understand which of the antibiotic resistant bacteria found in poultry, swine, beef, and the environment can affect humans.

Using the Integrated Rapid Infectious Disease Analysis software recently developed by federal scientists, the research team is analyzing large amount of DNA sequences of resistant bacteria.

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GOVERNMENT SUPPORTS NEW PILOT RISK MANAGEMENT TOOL Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, has announced the development of a risk management strategy being undertaken by the Manitoba Pork Council for pork producers to recover from the devastation caused by potential outbreaks of diseases, such as porcine epidemic diarrhea.

“Producers need to know that they have the tools and supports available to them if the worst happens. I’m excited by the potential of this project, not just for Manitoba, but for the pork sector across Canada. Our Government is working closely with the sector on many measures that deal with disease outbreaks before, during and after they occur.” stated Marie-Claude Bibeau, Minister of Agriculture and Agri-Food The Manitoba Pork Council will receive an investment of $482,158 towards a 2-year project that aims to create an effective, affordable, and self-sustainable risk management program that responds to periods of financial instability in the Manitoba hog industry. This could also include measures to assist producers with costs associated with cleaning and disinfection, so the producer is able to recover as quickly as possible.

George Matheson, Chair, Manitoba Pork Council said “Manitoba Pork thanks the federal government for their support of this project, so that we can develop some private sector solutions to mitigate the economic impact of diseases and market fluctuations. We will ensure that the project results will have application to all pork producers in Canada. The poultry sector has lead the way in developing risk management tools for specific diseases that affect their sector. We hope to build upon those initiatives to create insurance products for the pork sector.”

It follows on the success of provincial poultry sectors in Canada that have established a reciprocal insurance system to guard against the impacts of Avian Influenza and other diseases.

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While still at the early stages of development, if successful, the risk management strategy could expand to incorporate pork sectors in other provinces, with the understanding that the bigger the pool of participants, the more affordable it would be to individual producers.

Canada is a world leader of pork production and the Government stands shoulder-to-shoulder with its pork farmers. The Government is fully engaged in maintaining the stability of our pork farmers, evidenced by the many measures being taken to prevent African swine fever from entering Canada.

KEY BENEFITS • The project is funded under the AgriRisk Initiatives (ARI), a five-year program under the Canadian Agricultural Partnership that supports the development of new risk management tools.

The Research and Development stream prioritizes projects involving new financial tools which allow producers to manage a defined business risk.

• Manitoba Pork Council’s mission is to foster the sustainability and prosperity of the hog sector for the good of pork producers and all Manitobans.

• The Canadian Agricultural Partnership is a fiveyear, $3-billion investment by federal, provincial and territorial governments to strengthen the agriculture and agri-food sector. The Partnership includes programs and activities to enhance the competitiveness of the sector through research, science and innovation.

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CANADIAN FOOD INSPECTION AGENCY RECEIVES PAPERWEIGHT “AWARD” DURING CFIB’S RED TAPE AWARENESS WEEK

By Marilyn Braun-Pollon

Red tape – two little words but for a business owner can produce a mountain of frustration. You know the drill. Filling out excessive and confusing paperwork, complying with excessive or outdated regulations, redundant rules, or receiving poor government service.

We’ve all been there and most of us have dealt with some kind of red tape headache. A government form that’s so hard to understand it makes you feel stupid.

Waiting in line longer than what feels humane or getting caught in voice mail jail. These experiences can feel trivial on their own but their cumulative impact is huge.

It’s a lot of unnecessary time and stress that’s a drag on our personal lives and the economy. According to CFIB research, regulations cost small businesses $36.2 billion annually, $10 billion of which is unnecessary red tape.

For a business with fewer than five employees, it takes 178 hours per year – more than a month of work – to comply with all these federal, provincial and municipal regulations. Imagine what could be accomplished if we gave back business owners this time to invest in their business and their community!

Every January, the Canadian Federation of Independent Business (CFIB) dedicates an entire week to Red Tape Awareness Week (RTAW) to shine a light on this cost 20 CANADIAN MEAT BUSINESS 20

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and impact of excessive regulation. This past January marked the 11th year of RTAW. One of the initiatives CFIB undertook during the week to draw attention to the burden of red tape was to give out Paperweight “Awards” which highlighted the worst of the worst examples of red tape across the country.

Business owners voted over the week to determine the worst of the pack.

One of the Paperweight “Awards” that received a lot of attention was given to the Canadian Food Inspection Agency (CFIA) for its treatment of a B.C. meat processor, Ken Falk. His business got wrapped up in red tape for four years after it was accused of illegally selling meat into Alberta. The problem was Ken had no idea his B.C. customer, after taking delivery, had moved the product across the Alberta border. The CFIA fined Ken $42,000, even though there is no rule saying a business must track its product beyond its immediate customer.

The CFIA told Ken they would be willing to reduce the fine by 50 per cent if Ken paid it in 15 days and admitted guilt. Instead, he chose to fight, entangling himself in a four-year legal battle. Throughout the frustrating ordeal, he received numerous visits and several interrogations from the CFIA and had his hearing delayed several times.

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Eventually a tribunal exonerated Ken, saying it would be impossible for him to control what happened to his products after they were sold and delivered to his customers. However, on top of the personal stress for Ken and his family, the legal battle cost him $130,000 with no mechanism in place at the CFIA for him to recoup any of these significant costs.

Even though Ken won the fight, the CFIA has not implemented any changes that would prevent this from happening again.

This is clearly one of the worst examples of government overreach and an extreme example of red tape that hopefully most businesses never have to deal with. But these kinds of real-life examples show what can happen when a government agency is not held accountable. By shining a light on Ken’s story and having the courage to speak up about his experience, it is the only way to bring about change.

Business owners are not trying to skirt the rules. They just want to know how to comply. The CFIA needs to use fairness and common sense when enforcing rules and regulations and provide greater clarity around businesses’ obligations. Rulings, like in this case, should set precedents so that other businesses do not face unfair interpretations of CFIA’s rules.

Ken has spent thousands on legal fees to defend his

business. The time, money and resources that were wasted to defend his business against CFIA could have been better spent innovating, growing his business or contributing even more to the local community.

How would your business cope if faced with the same situation?

We recognize some governments have made more progress than others in reducing red tape for farmers and small businesses over the past decade. But we all know there is still more work to be done. When CFIB started Red Tape Awareness Week over a decade ago, governments didn’t care about red tape or bother measuring the number of regulations they impose on their citizens and businesses. Now, we are seeing strong efforts from many governments across the country to measure and reduce their regulatory burden.

As we enter a new decade, it’s important for governments at all levels to take it to the next level and get with the times by throwing out outdated processes and modernizing the way they do things, from major regulatory overhauls all the way down to small changes, like moving payment processes online. CFIB will continue to fight for businesses, like Ken’s, and make sure red tape reduction is a permanent feature on the menu, not just a flavor of the month.

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Marilyn Braun-Pollon is the Vice-President of Western Canada & Agri-business for the Canadian Federation of Independent Business (CFIB).

CFIB has 110,000 small and medium-sized member businesses (7,200 agri-business members) across Canada.

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