March/April 2017 Issue

March/April 2017

CANADIAN BUTCHER MARCELLO CASTELLANO INVITES US FOR A BBQ

Canadian Publications Mail Product Sales Agreement 41689029

Return undeliverable copies to: 106-530 Kenaston Boulevard, WPG, MB, R3N 1Z4

EVERYTHING TASTES LIKE CHICKEN, EVEN WHEN IT’S NOT CANADIAN PORK RESPONDS TO GLOBAL DEMAND AND BREAKS EXPORT RECORDS AGAIN RANCHING OPPORTUNITIES: BEEF INDUSTRY FACES CHALLENGES, OPPORTUNITIES m e a t b u s i n e s s .c a

$ 7.99

e g d e e h t n e t h ig a r St o f y o u r k n iv e s k ly ! e a s il y a n d q u ic

New! Air-operated models available, too.

More power.

More profi AR P ' EASY SHts.

Sa fety!

COD E 19 06 2 l - O ptimal Food ee St s es nl ai St od el 10 0% N ew Mand The world’s most productive

profitable trimmer system: Now available in more models than ever!

Rapid and efficient For no-hassle meat recovery, defatting and muscle even for a novice cutting, experience the ultimate in productivity andsame use as a steel bottom-line performance when you use the expanded No.1 feature pre00%™ Trimmers. lineup of 1 Quantum tensioned bars

TAINLESS STEEL • Improved product appearance •S Increased meat yields

Free of maintenance (no springs mounted)

• Minimized need for rework • Improved worker productivity Join other leading North American plants … and gain all these benefits, too!

Visit bettcher.com/quantum for video demos and detailed specs!

Included with a stand for fixing at 90°C or 45°C

Contact the YES Group at 800-465-3536 or sales@yesgroup.ca to schedule an in-plant demonstration and custom financial impact analysis.

YES Group | Markham, Ontario

Hand protection

800-465-3536 | 905-470-1135 | yesgroup.ca Inverted hand-guard Better ®weight distribution From the makers of the Whizard Trimmer …

Available at the

Yes Group Inc.

Quantum, Whizard and the Bettcher design are trademarks of Bettcher Industries, Inc. U.S. and international patents. ©2014 Bettcher Industries, Inc.

2 CANADIAN MEAT BUSINESS March/April 2017

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

IN THIS ISSUE March/April 2017

5 6 9 12 13 15 17 18 20 21

Woe to WOTUS: Trump Signs Executive Order to End Obama’s Clean Water Rule

By Chuck Jolley

Canadian Butcher Marcello Castellano Invites Us for a BBQ

By Scott Taylor

Special Report: Deflation Changing the Food Retail Meat Purchase Says ‘Power of Meat’ Everything tastes like chicken, even when it’s not

By Chuck Jolley

Lamb: The Other 4 Letter Word

By Angus Burger

CCA: Beef Industry News and Updates

By Gina Teel

Canadian pork helps sustain the economy

By Kevin Grier

Canadian Pork Responds to Global Demand and Breaks Export Records Again Pork farmers hope to research improvements with latest $1.8 million

By Dylan DaCosta

Temple Grandin named to the National Women’s Hall of Fame

22 23 25 26 28 29 30 31 32 33

Increased Competition and Weaker Consumer Spending Take a Bite Out of Canadian Food Service Industry in 2017 Ranching Opportunities: Beef industry faces challenges, opportunities Ontario beef producers look for more business in their backyard

By Owen Roberts, Farm Credit Canada

TPP countries discuss trade in Chile UFCW shocked at funding cut for English class at Maple Leaf Foods

By Riley Laychuk, CBC News

Foreign workers and the Canadian story Dan Kelly, President & CEO, Canadian Federation of Independent Business

CMC Welcomes Investments in Food Safety and Innovation in Budget 2017 How Canada cut foreign workers and hobbled its meat industry

By Andy Hoffman, Mario Parker and Jen Skerritt, Bloomberg

Foodservice Industry Creates 11,000 New Jobs in 2016

By Chris Elliott, Senior Economist

A Butcher’s 12 Step Program

By Angus Burger

SUPERIOR PACKAGING STARTS WITH REISER Reiser packaging expertise and Repak technology are the powerful combination you need to produce a superior form/fill/seal package.

■ The Repak form/fill/seal packaging machine is a rugged, high-speed racehorse capable of the industry’s fastest speeds.

■ Produces the highest quality packages with reliable seals that virtually eliminate leakers and returns.

■ Features rapid air forming to allow the use of thinner, less expensive films while maintaining package integrity.

■ Uses two 4-point lifting systems in both the forming and sealing stations to generate up to five metric tons of closing pressure for uniform forming and higher quality seals.

■ Hygienic design and stainless steel construction for superior sanitation.

Test the Repak for yourself – contact us to arrange a demonstration at our Reiser Customer Center.

www.reiser.com Reiser Canada Burlington, ON • (905) 631-6611 Reiser Canton, MA • (781) 821-1290 2016

GUEST EDITORIAL

March/April 2017 Volume 16 Number 2 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Chuck Jolley, Scott Taylor, Kevin Grier, Dylan DaCosta, Owen Roberts, Riley Laychuk, Dan Kelly, Andy Hoffman, Chris Elliott, Angus Burger, Gina Teel CREATIVE DIRECTOR Christian Kent Canadian Meat Business is published six times a year by We Communications West Inc.

WOE TO WOTUS: TRUMP SIGNS EXECUTIVE ORDER TO END OBAMA’S CLEAN WATER RULE

By Chuck Jolley

Obama’s original EPA rule, written in May, 2015, was met with heavy opposition by America’s agricultural community. Afraid that its wording might be construed to give that government agency unrestricted control of any body of water - from normally dry waterbeds to the average post-rain mud puddle - farmers and ranchers were almost unanimous in asking for its immediate and total repeal.

President Donald Trump, desperately wanting to throw a bone to a group that was instrumental in electing him, reacted to ag industry pressure and signed an executive order rolling back the Obama era rule.

A Bush era law determines what waters are protected and Michael Kelly, director of communications at Clean Water Action, talking with NBC News said the new law was instituted to protect drinking water and to advance the national goal of making all water In the United States “fishable, swimmable and drinkable.”

“Protecting clean water is about protecting public health. This executive order is putting our water at risk and putting special interests ahead of the public interest and ahead of the public health.”

As he signed the order, Trump said, ”The EPA so-called Waters of the United States rule is one of the worst examples of federal regulation, and it has truly run amok, and is one of the rules most strongly opposed by farmers, ranchers and agricultural workers all across our land. It’s prohibiting them from being allowed to do what they’re supposed to be doing. It has been a disaster.” Standing with him were representatives of the American ag community.

Using the usual over-the-top language that marks many of his statements, he said, ”With today’s executive order I’m directing the EPA to take action paving the way for the elimination of this very destructive and horrible rule.”

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. ©2015 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

Because the worst fears of government overreach had not been realized, a more honest statement would have eliminated the words “disaster” and “destructive” Obama’s WOTUS executive order was supposed to clarify what bodies of water were protected, and would only become effective if there was a risk of pollution in those newly covered waterways. Full implementation, though, was blocked by a series of Republican-inspired lawsuits.

An angry American Farm Bureau Federation President Zippy Duvall had called the WOTUS rule flawed and said, “It has proven to be nothing more than a federal land grab, aimed at telling farmers and ranchers how to run their businesses. The EPA failed to listen to farmers’ and ranchers’ concerns when drafting the rule and instead created widespread confusion for agriculture. Under the rule, the smallest pond or ditch could be declared a federal waterway.”

A more rational voice was NCBA’s environmental counsel Scott Yager, who said in January, “The Trump Administration has stated that WOTUS is a priority. How we would hope it plays out is that the EPA reconsiders it and ultimately withdraws it and starts fresh with all stakeholders at the table—from the start.”

Certainly the rule failed to adequately clarify the Bush administration’s rule to the satisfaction of the ag community but its complete repeal does nothing to improve the safety of America’s waterways. Yager’s wiser statement that a fresh look with all the stakeholders sitting at the table seems to be a much more rational approach.

The Trump administration’s zeal at repeal but not replace government rules and regs would mean Yager’s table would be empty. The current level of water pollution would become the base line for measuring increases in the coming years.

Chuck Jolley is the President of Jolley & Associates and is a respected writer, editor, publisher and public relations expert with more than 25 years experience in the meat and poultry industry.

meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 5

CANADIAN BUTCHER MARCELLO CASTELLANO INVITES US FOR A BBQ

By Scott Taylor Photos by Jeff Miller

For Winnipeg butcher Marcello Castellano, bar-b-que season isn’t much different than a religious holiday. It’s that time of year when the treasures in his shop bring forth their bounty in a fragrant, ineffable tribute to the creatures who gave their lives for our own gastronomic delights.

For Castellano, a good bar-b-que can take a lot of planning.

Or, better yet, it can be the simple act of throwing a great cut of meat on the grill and watching the juices rise to the surface.

Castellano, 45, is a professional butcher. It’s a trade of which he is quite proud. His store is an olfactory pleasure, a place where you can walk in sated and it will make you hungry all over again.

“I started at a place called European Meats at the Forks Market in Winnipeg when I was 20-years-old,” he said. “Even while I was going to school, I always had a job. I started in retail when I was 11, but when I got to European Meats, my life changed. It was only a part-time job but the day I started, I just fell in love with it.

“Working with meat and learning all the things you could do with it well, my curiosity never ended. Still hasn’t. I knew this is what I wanted to do from the day I started. I’m just in love with this business.”

It’s been 25 years and Castellano is still in love. He operates one of the most popular meat markets in Winnipeg and like the butcher shops we old timers grew up with -- places where the proprietor knew your name -- Marcello greets all of his customers like old friends. And, indeed, he knows most of their names.

“I wouldn’t call myself the King of the Bar-b-que, but I can tell 6 CANADIAN MEAT BUSINESS March/April 2017

you this: I’ve been around it so much that I can cook a pretty good steak,” he said with a laugh.

If Castellano worries about anything, it’s losing a butcher in his shop. There was a time when Manitoba, even Canada, had a glut of good butchers. Not anymore. When Marcello loses one of his young meat cutters, he has trouble finding a replacement.

“It’s a dying trade, there aren’t many butchers out there,” he said. “If you want to find a good butcher, you pretty much have to train him or her yourself. There used to be a program at (Winnipeg’s) Red River College where you could go and learn to be a butcher, but there were so many students graduating and not enough jobs at the time, that they dropped the program.

“Now, years later, butchers are at a premium. If I lose a butcher here, I just wonder ‘Wow! What am I going to do now?’ I have to start looking, find a good young person and start training.

It’s frustrating at times. These days, it’s a great business to be in. We need more butchers.”

Ironically, this dearth of good butchers comes at a time when the quality of Canada’s beef, pork and poultry has never been better. You can smell it when you walk in any butcher shop from Halifax to Victoria.

“As an example, this grade of beef we’re working with here, meatbusiness.ca

Top Grade Certified Angus Beef, is by far the best we’ve ever seen,” he said. “The first time I tried it, my supplier handed me a frozen steak and without any seasoning on it, just grilled, it was one of the best steaks I ever had. Canadian beef is second to none in the world and this grade is the best I’ve ever seen and tasted.”

Which brings us to the bar-b-que. What, Mr. Butcher, makes a bar-b-que a memorable – or even religious -- experience?

“Quality,” said Castellano. “It’s all about quality. Even though we have some of the best quality beef in the world in Canada, it’s still hit and miss sometimes. When you shop for a cut of meat, look at the label, read what you’re getting. See that it’s fresh, that it’s the highest grade.

“We’ll talk about some cuts today that can be quite expensive, but I can guarantee, that if you buy quality grade beef, pork and poultry, you’ll have a Bar-b-que that is an unforgettable experience.”

We asked Marcello, a man who has been in the meat business for 25 years, to introduce us to his favorite cuts of beef, pork and poultry for the Bar-be-que. We avoided burgers even though Marcello makes a hamburger with ground bacon in it (swoon). We asked him to pick three cuts of each and just by looking at his choices, he did not disappoint.

BEEF Centre-Cut Beef Tenderloin: Known as the eye fillet in Australia and New Zealand, a filet in France and beef tenderloin in North American, it is cut from the loin of beef. The tenderloin is an oblong shape spanning two primal cuts: the short loin and the sirloin. The tenderloin sits beneath the ribs, next to the

meatbusiness.ca

backbone. It is, as they say, “to die for.” “When you buy one, look for the marbling,” said Castellano. “And always buy Triple A beef. It’s going to be more expensive, quite pricey, really, but it is our pride and joy. It is the most beautiful cut of beef you’ll find anywhere. A high quality beef tenderloin done on the barb-que by a good cook is truly mouthwatering.”

The Strip Loin: In Canada, most meat purveyors refer to this cut as a strip loin, but around the world, it’s the strip steak, which is also called a New York Strip – as long as you’re outside of New York City. It is a cut from the short loin and consists of a muscle that does little work, the longissimus, making the meat quite tender (though not as tender as the rib eye or tenderloin). The fat content of the strip is somewhere between the two cuts. “It’s essentially a boneless T-Bone,” said Castellano. “You have two cuts on a T-Bone, the tenderloin and the strip loin. The strip loin is leaner than a rib-eye, but it’s still a beautiful steak.”

March/April 2017 CANADIAN MEAT BUSINESS 7

The Ribeye Steak: The ribeye, also known as the Scotch filet in Australia and New Zealand, is obviously from the rib section, a section of beef that spans ribs six through 12. It is flavorful and tender, coming from the lightly worked upper rib cage area. Its marbling of fat makes it perfect for fast and hot cooking. “It’s my favorite simply because of the marbling,” said Castellano.

“It’s one of the juiciest steaks you’ll find, but make sure that the Ribeye you buy is aged a minimum of 28 days.”

PORK

End Cut Pork Chop: It comes from the area between the shoulder and back legs. It is the leanest, most tender part of the animal. Rib and loin chops are cut from this area, as are pork loin roasts and tenderloin roasts. Rib chops from the blade end have more fat and connective tissue than chops from the shoulder end. Pork chops are the equivalent of beef steaks and are the priciest part of the animal. “I like the end cut because there is more marbling,” said Castellano. “Pork fat is the most flavorful of all the animal fats and the rib-end is the most beautifully marbled cut of all. There is nothing juicier than the rib-end cut.”

Centre-Cut Pork Chop: It’s the rib section of the loin, from the shoulder to the middle of the loin (the rib bones attached to these chops are actually baby back ribs). It is a large eye of lean loin meat and no tenderloin meat. There is a bone running along one side and sometimes a layer of fat on the outside. “You have the tenderloin portion and the strip loin portion,” explained Castellano. “This is the strip loin portion.

It’s delicious and it’s great on the bar-b-que.”

farms anyplace and there is nothing wrong with that,” he said. “But if you go to a good butcher shop, you should be able to buy ones from a nice local or regional family farm. I guarantee you that you will notice the improvement in flavor.

We buy our breasts from Heritage Lane Farms in Steinbach, Man., and when I first opened, people would say, ‘Give me four chicken breasts,’ and I’d pull out these breasts and folks would be caught off-guard.’ These are from big, healthy free range chickens and two breasts will feed four people. On the bar-b-que, I just use that Montreal steak spice. I love the salt and spices they use and while some people will say it’s only for steak, it’s not. Rub it or shake it onto a chicken breast and it will be the best you’ve ever tasted.”

Chicken Wings: There are two parts to a chicken wing. The portion of the wing that’s attached to the main part of the chicken is called the drumette. There’s one main piece of bone in the middle, but there are some joints and cartilage on both ends. The middle part of the wing is called the wingette, or the flat. There are two thin bones that run parallel to each other down the length of the flat, and it has tender dark meat and is completely covered with skin. For me, the wing is the best part of a bar-b-qued chicken. “Again, go to your local butcher shop and get big, meaty, juicy wings,” said Castellano. “No matter where you are in Canada, wings are always bigger and meatier at the butcher shop. I guarantee it. Just throw them on the barb-que, cook ‘em right up until they’re golden brown and then toss them in your favorite sauce. Delectable.”

Chicken Sausage: You can’t have a good bar-b-que without sausage and the best butcher shops will all have great housemade chicken sausage. “At our shop, we use those free-run chickens from Heritage Lane Farms that have no steroids or antibiotics and we make an Italian Chicken sausage that will make your mouth water,” he said. “Any good butcher shop will make its own chicken sausage and you just can’t beat it. Like pork sausage or brats, just throw it on the bar-b-que, wait until the skin cracks, watch for those juices to flow and then dig in.

I’m getting hungry just thinking about it.”

Bratwurst: Every part of the planet has its own rendition of encased meats. Sausage is a preparation of ground meat that can be found in dried or fresh varieties and sold either in casing as links or in bulk. Bratwurst, German in origin, is a specific type of fresh link sausage made with pork or veal.

Castellano’s house-made pork Bratwurst would make any German proud, simply because Bratwurst recipes are different in every region of Germany. “With our seasoning, these brats are unbelievable, but any good bratwurst is wonderful on the bar-b-que,” said Marcello. “I just throw them on the grill. When the skin cracks and the juices start flowing, they’re done. What a mouth-watering treat.”

POULTRY Bone-In Chicken Breasts: Hey kids, it’s the breast of a chicken and if you go on-line, you’ll find at least 2.5 million recipes for preparing chicken breasts in the oven or on the bar-b-que. But Marcello has a secret that all bar-b-que chefs should consider.

“You can buy a bone in chicken breast from the big corporate 8 CANADIAN MEAT BUSINESS March/April 2017

meatbusiness.ca

SPECIAL REPORT: DEFLATION CHANGING THE FOOD RETAIL MEAT PURCHASE SAYS ‘POWER OF MEAT’ After years of increasing prices in a volume-challenged marketplace, deflation is profoundly changing the meat purchase yet again. The Food Marketing Institute (FMI) and the North American Meat Institute (NAMI) have released their annual consumer trends analysis of the food retail meat department, finding that price relief is driving a greater willingness for experimentation and premium product purchases among consumers.

In its 12th year, the study, made possible by Sealed Air’s Food Care Division, demonstrates how thoughtful curation of the meat case tailored to shopper needs, trends and innovation can influence incremental sales and provide the industry with opportunities to foster high levels of satisfaction and drive spending and loyalty. The study, for instance, found that selling meat as part of a total meal solution in ready-to-prepare meal kits drew consumer interest and has the potential to yield increased sales.

FMI Vice President of Fresh Foods Rick Stein emphasized, “It is important for food retailers to help their customers shop smarter, and no department is better positioned to do this in 2017 than the meat department.”

Stein continued, “The research shows how consumers clearly understand the nutritional and flavor benefits of protein and are eating more proteins in various forms – with overall volume up.”

The study emphasizes how food retailers and suppliers

meatbusiness.ca

should continue to help tell a story about the meat purchase, paying particular attention to the product’s attributes, such as ingredient and production practices. These stories also translate to in-store execution of promotions and through digital, mobile and social media promotions.

“It is clear that consumers are seeking more information and transparency about their meat and poultry products and the industry is hearing that message,” said North American Meat Institute President and CEO Barry Carpenter. “From our Glass Walls videos showing how animals are handled in our plants to the new MyMeatUp app, which includes a full guide to beef, pork, lamb and veal cuts available at retail, consumers have more resources at their fingertips to help them purchase the meat and poultry products they seek.”

In addition, value-added meat and poultry saw robust volume increases. Better communication by retailers about the grade, handling practices, prices and convenience of these products may help accelerate further growth, according to the study.

March/April 2017 CANADIAN MEAT BUSINESS 9

While 62% of consumers still choose the supermarket to make a meat and poultry purchase, alternative channels are garnering momentum. In particular, among the 24% of shoppers who switch from traditional channels, consumers increasingly choose butcher stores (77%); farmer’s markets (7%); and specialty/organic (8%). Notably, for the first time in 12 years, shoppers who have bought natural/organic (48%) exceeded those who have not (41 %) – just a decade ago, that gap was 50 percentage points.

Top Findings of the Power of Meat 2017 1. The paper circular is losing relevance to in-store and digital/ social, but the concept of promotional activity remains crucial.

While slightly fewer shoppers check meat promotions pretrip and research frequencies are down somewhat compared with prior years, meat remains a well-planned purchase. Sixty percent of shoppers check primary store promotions and 46 percent research across banners. The paper ad remains the best way to drive the purchase among primary and secondary shoppers, and meat returned to front/back pages along with big picture features and hotter promotional pricing. However, trends show that increased attention should go to in-store execution of promotions and digital/mobile/social media outreach.

2. Price per pound has the greatest purchase influence, and price relief is driving increased volume and premiumization.

The importance of price is uncontested but the way shoppers assign value is changing. Older generations place great value on price per pound and appearance. Millennials emphasize total package price, having the preparation knowledge and weigh the preparation time/ease. They also favor fixed-weight pricing over varying pack prices on a per-pound basis.

3. Brands are one of the strongest stories in both fresh and processed meat/poultry, particularly among Millennials.

Shoppers are rewarding brands for their innovation and increasingly equate quality with brands, including national manufacturer, small/regional manufacturer and store brands.

Importantly, shoppers express interest for all three types of brands when buying fresh and processed meat, allowing retailers to build a unique mix tailored to each audience for optimal differentiation.

4. Consumers are looking for the story of meat, and special attributes are seeing growing shopper uptake and sales.

Shoppers increasingly seek transparency into meat/poultry ingredients and production practices, fueling double-digit growth for organic, antibiotic/hormone-free, grass-fed and other special attributes. Shoppers report high interest in expanded assortment of all these items as well as claims relative to better treatment of the animal/environment. Price differentials are the main barrier to purchase, while core users

are relatively unaffected by price premiums — natural buyers being the exception.

5. Improved shopper outreach can help foster high levels of satisfaction and drive spending and loyalty. While the lowestrated performance attribute, customer service and education are highly valued by shoppers — particularly personal assistance and on-pack information. Being seen as meat experts and a personal concierge who provides a curated selection of products will help secure future spending. Threequarters of surveyed retailers are working on allocating more labor hours to the sales floor. However, 89 percent say finding good people looking to make a career in meat is an issue.

6. Meat/poultry are slowly returning to the dinner plate, but the quest for variety is driving regular use of protein alternatives.

The majority, and a growing number, of home-cooked meals include meat/poultry and protein choices shifted along with price changes. But three-quarters of shoppers prepare meat alternatives at least once a week, with growth for fish, eggs and plant-based proteins. Protein continues to be a popular claim, but is not leveraged exclusively nor optimally by the meat industry.

7. Thoughtful curation of the meat case tailored to shopper needs, trends and innovation can drive incremental sales.

Variety is one of the top reasons to switch stores, arguing for assortment optimization at the store level. Variety is also the main reason for serving protein alternatives. While the meat case offers an abundance of proteins and cuts, buying unfamiliar meat/poultry items has a much higher trial barrier than other new food experiences. Overcoming habitual purchases through education, customer service, sampling and/or recipes can pay off big through incremental dollars in meat and the total basket.

8. Selling meat as part of a total meal solution prompts interest for everyday and seasonal meal occasions. Thinking like the shopper by positioning fresh meat as part of a total meal solution versus meal component piques shopper interest.

Ready-to-prepare meal kits in the meat department draw interest among 53 percent of shoppers. Meat-inspired events and high-quality meal solutions for secondary holidays may be other ways to drive incremental dollars and volume.

9. Trip trends and the growing popularity of alternative channels emphasize the importance of shopper relevance. Meat remains a supermarket stronghold through high conversion and secondary store trips. But trips are down for traditional channels as alternative formats pick up more of the occasional meat purchase. Millennials are drawn to alternative channels — a red flag for traditional retailers to better understand and serve their different purchasing and consumption habits.

10. Convenience meat/poultry is poised for growth, but it’s important to actively address quality and freshness perceptions. Identified as a future growth area by retailers, and valued by high-income, convenience-seeking shoppers, value-added meat and poultry saw robust volume increases.

Uptake is growing among the core user group, but price, quality and freshness perceptions stand in the way of wider adoption. Better communication about grade, handling and prices commensurate with the level of convenience may help accelerate growth.

For questions on the report or presentation, email: aroerink@210analytics.com, lgethin@fmi.org or awells@meatinstitute.org Report made possible by Sealed Air’s Food Care Division Top Findings of the Power of Meat 2017

10 CANADIAN MEAT BUSINESS March/April 2017

meatbusiness.ca

meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 11

EVERYTHING TASTES LIKE CHICKEN, EVEN WHEN IT’S NOT

By Chuck Jolley

The rumor has long persisted that chicken products served in certain fast food restaurants are not exactly what they seem. CBC’s “Marketplace” decided to wade hip-deep into the controversy and let science do the talking. Their report managed to annoy Subway and a few others with what we might call an inconvenient truth.

Checking the DNA signature of the poultry-like substance found in a Subway sandwich - both the oven roasted and their sweet onion teriyaki strips - Marketplace reported significant amounts of non-chicken DNA. More than 50% was some other ingredient, possibly soy in one test with the average of several tests being 42.8%. Tim Hortons did better but CBC still reported double digit percentages for non-chicken ingredients. McDonald’s, the world’s largest burger chain, was serving chicken that was actually 90% the real thing. The average of other chains tested was 84.9%.

Subway was not happy with the report. Their p.r. group shifted into an aggressive defensive overdrive. Suzanne Greco, the sandwich chain’s CEO, said, “The stunningly flawed test by

‘Marketplace’ is a tremendous disservice to our customers.”

She claimed the 50% chicken number was 100% wrong and immediately commissioned her own study.

Canada’s Maxxam Analytics and America’s Elisa Technologies tested the soy protein content of the suspect chicken and reported it was less than ten parts per million. Subway said those findings were ‘consistent with the low levels of soy protein that we add with the spices and marinade to help keep the product moist and flavorful.’

For those who do not understand corporate speak when it comes to these delicate matters, ‘to help keep the product moist and flavorful’ means the product has some water added which is a very low cost product extender.

The chain demanded an immediate retraction. CBC stood firmly behind the report and refused. They claimed Subway’s product, supplied in Canada by Grand River Foods, was the only one that contained enough plant DNA to actually identify the soy species.

Here is what Subway Canada says about the content of its chicken: “Our Oven Roasted Chicken is made from chicken breast meat, water, seasoning (sea salt, sugar, chicken stock, salt, flavours, canola oil, onion powder, garlic powder, spice, chicken fat, honey), soy protein, sodium phosphates.

Our chicken strips are made from boneless, skinless, chicken breasts, water, soy protein concentrate, modified potato starch, sodium phosphate, potassium chloride, salt, maltodextrin, yeast extract, flavours, spices, dextrose, onion powder, caramelized sugar, paprika, chicken broth, vinegar solids, paprika extract.”

The researchers pointed out the healthy eating perspective of fast food chicken, saying it contains approximately 1/4 less protein and as much as 10 times the salt content of home-cooked chicken. It’s the usual modern mealtime tradeoff - slightly more convenience, slightly less nutrition.

Subway is just 18 months past another damaging controversy, by the way. In 2015, they were facing a social media storm about their foot longs. A photo posted on Facebook showed their biggest sandwich was an inch shy of their promise.

What happened could be called a free lunch for lawyers as legal actions were taken and a chastened chain responded with a timid mea culpa ex

12 CANADIAN MEAT BUSINESS March/April 2017

meatbusiness.ca

Even with all that bad publicity, Subway ranks at the top of a questionable heap when it comes to consumer preference.

Temkin Experience Ratings puts them in first place in their annual rankings for 2016. McDonald’s and Burger King, Tim Hortons sister company, trailed the pack, finishing dead last.

The Marketplace report highlights a concern expressed by many nutritionists. The fast food industry (they prefer the term ‘quick service’) is an extremely competitive business with menu pricing differentials measured in pennies. Meal items are formulated to meet very low price points which require selective, least-cost formulation. The idea that meat and poultry products have been enhanced with other non-

meat ingredients should not be a surprise.

It does not mean a fast food burger is unhealthy or dangerous.

The restrictions on content required by Health Canada and America’s FSIS help keep things honest. The kitchens of the industry need to understand, though, that what they formulate will become public knowledge sooner or later. That brick wall that kept the public from watching has become transparent.

It’s made of clear glass and an inquisitive public is looking over the shoulders of Subway, Tim Hortons, McDonalds, Burger King and the rest of the players, large and small.

LAMB: THE OTHER 4 LETTER WORD

By Angus Burger

Lamb producers in Canada or the United States who intend to expand production have their work cut out for them these days. Or should I say instead, they have fought this fight forever. Sad but true. I think Albert Einstein could sum this up for lamb producers when he created the definition of insanity; “doing the same thing over and over again but expecting different results”.

Lamb producers just don’t get it. They need to visualize a long “food consumption pipeline” from consumers back to producers. The beef, pork and poultry producers have the advantage of reverse osmosis (suction); “constant demand”.

It is nearly impossible to market lamb or anything else if you start at the wrong end of the pipeline. There is no extra assist from reverse osmosis because demand is little to none in many supermarkets across the land. Coupled with the fact that the lamb producers do not have strong national marketing organizations like the beef, pork and poultry producers have.

In a discussion I had with one lamb producer he said, “Well 2% of meat department sales isn’t too bad when you consider that a lamb carcass only weighs 40 to 50 pounds as compared to carcass beef at 650 or pork carcass at 250 pounds.” My answer was yes, but a chicken carcass weighs between 3 to 4 pounds and chicken represents possibly as much as 30% or more of most meat department sales.

If producers want to expand lamb production they must help to create a demand for lamb at the consumer end of the pipe line by first educating meat department managers and meat executives. Somebody needs to get into the trenches and “sell the sizzle not the steak”.

Once that is done then they can move on to the consumer and appeal to them with point of sale advertising and targeted promotions that will get their attention. This is not rocket science, just look at the success of some of the largest pet food companies with their ever ending advertising bombardment of the consumer. Their market keeps expanding with introductions of more and more nutritional health related and flavor claims and we are talking about dogs and cats! meatbusiness.ca

In my opinion I dare say that 90% of millennials have never put a piece of lamb in their mouths and have no idea about

Model F2000N With Optional Detachable Product Feed Tray

BIRO Manufacturing Company Marblehead, OH 43440-2099 USA 419-798-4451 Fax 419-798-9106

www.birosaw.com

220RB-4-13

March/April 2017 CANADIAN MEAT BUSINESS 13

the flavor, palatability and/or health benefits of lamb. Heck, they probably can’t find even if they tried! Actually lamb fits this generation like a glove. Many nutritional experts believe that lamb has the ability to lower the risk of cardiovascular disease. Research done in many Mediterranean countries where lamb is a staple meat item proves that. Another marketing idea directed at the “Z” generation is the fact that unlike other farm animals sheep are not confined to factory farming conditions. They live their lives in a kind of open-range way. I can speak from experience as far as the slaughtering of farm animals goes and I can tell you that sheep don’t experience the crowding or stress of their larger counterparts like cattle or hogs. Lamb producers need to take the blinders off and look at the challenges, but turn those challenges into opportunities.

The Challenge is there is a limited supply of lamb at the retail level with only a few cuts offered combined with very little point of sale advertising by the store or the chain and there is usually no prominent or permanent case position. Ask a meat department manager in any type supermarket across the land why he doesn’t sell lamb and the response might be, “oh lamb that other four letter word” or “it’s a slow mover” or “we only sell a few cuts” or “why spend time trying to make a hard sell when I can devote that time to sell more volume items.” A supermarket with $2 million dollars in annual sales could have a weekly customer count of 3500 customers and one meat department manager is making a decision for all of them concerning lamb!

Lamb producers should consider “free sample marketing’ at the retail level. A powerful tool that could lift lamb consumption to new heights. Sure, it cost’s money, but it will be money well spent.

A great example of the success of free sample marketing comes from The Hot Sauce Co. founder Sue Sullivan. Her 8 year old company was failing and she didn’t know what to do then someone directed her to Reddit, a social media blog. She promoted her program of free samples on that site and it turned everything around for her company. Perhaps the most successful example of free sample marketing are 14 CANADIAN MEAT BUSINESS March/April 2017

wineries throughout the world.

According to Richard George, professor and head of food marketing at St. Joseph’s University, there are a couple of main reasons he would recommend this type of marketing.

First, offering a quality product as a free sample makes the rest of your inventory look good. If your free product is of lesser quality than your other products, then you shouldn’t give it away. If your product is of low quality, it’s unlikely that consumers will be interested in spending money on your products in the future. Second, if you’re entering the market place with a very unique product, one that may be difficult to describe, giving free samples will help your potential audience get a taste of the product and spread the news by word of mouth.

I can give you a firsthand experience of the power of free sample marketing sampling. During my time in the industry, I was meat director for an independent group of 350 supermarkets both large and small. Every week I had to develop a meat ad and promotion and it was always the same - beef, pork, poultry or a combination of all three. Very few stores sold lamb. I made a suggestion to the board of directors that I would like to introduce lamb to its members.

They looked at me like I had two heads. After much coaxing I was able to get the nod. Now my head was on the proverbial chopping block. I turned to the American Lamb Counsel, a strong organization at that time. I told them of my plans and they said we can help you. After weeks of contacting members I was able to set up a seminar and we invited all 350 store owners to attend, we got about 60% attendance. The seminar lasted less than 2 hours and while the Lamb Counsel rep was talking and showing slides, he was also cooking three legs of lamb on a table-top gas grill. The lamb was done when his talk was done, that was really impressive in and of itself.

The samples were given out to the crowd and for that first ever lamb sale for this organization, I bought a 40,000 pound load of lamb carcasses. But what made it a total success was that we advertised specialized cuts including lamb patties.

I wish total success for all of you lamb producers!

meatbusiness.ca

CCA: BEEF INDUSTRY NEWS AND UPDATES

By Gina Teel

The Canadian Cattlemen’s Association (CCA) held their Annual General Meeting (AGM) in Ottawa from March 8-10. CCA President Dan Darling and Vice-President David Haywood-Farmer were reelected by acclamation to serve for another year. The CCA welcomed new board members Grant Huffman (B.C.), Roland Cailliau (AB), Lynn Grant (SK) and Victor Oulton (NS) for the 2017-18 term. PEI will be sending a new representative at a later date. The CCA thanked past directors John Anderson (B.C.), Howard Bekkering (AB), Perry Rasmuson (SK), George Smith (NS) and Ivan Johnson (PEI) for their contributions to the Canadian beef industry over the years.

The pursuit of trade opportunities, particularly in the wake of the U.S. election, was a key topic at the AGM. The CCA is concerned that the growing anti-trade rhetoric is extremely dangerous to the long-term viability of market-based trade and global economic growth. A fundamental goal of the CCA is to support policies that call for the removal of unnecessary barriers to trade.

There was extensive discussion amongst committee members on the prospects for a Trans-Pacific Partnership (TPP) agreement without the United States. The withdrawal of the U.S. from the agreement renders the current coming-into-

Continued on page 16 meatbusiness.ca

force provisions of the TPP moot, and the TPP cannot come into effect unless the formula in that provision is changed.

The CCA has encouraged the Government of Canada to pursue a strategy that delivers the trade access that Canadian beef producers need regardless of the action the U.S. takes. This could mean completing a Canada-Japan bilateral agreement or perhaps amending the TPP provisions so that it can be implemented by some of the remaining 11 members without the U.S. It remains unclear what strategy the Government of Canada will in fact pursue.

The

ongoing

issues

and

efforts

surrounding

the

March/April 2017 CANADIAN MEAT BUSINESS 15

implementation of the Canada-EU Comprehensive Economic and Trade Agreement (CETA) were also discussed. The CCA continues to work with government on addressing technical issues that need to be resolved in order for CETA to deliver on its potential for beef exports. The CCA has also requested that the beef industry is given equivalent consideration as others have been provided regarding transitional investment to compete under the CETA. Committee members continue to support the potential of these agreements while expressing concern over the challenges in fully realizing that potential.

Climate change discussions, particularly around carbon pricing, remain a key environmental policy focus area.

Committee discussions centered on further strengthening of the carbon policy due to the announcement of the climate pricing framework by the federal government that will be implemented provincially.

In a related discussion, members noted that with the change in direction of our largest trading partner (the U.S.) with regards to carbon pricing, that the CCA lobby the federal government that any existing or future policies regarding price on carbon cannot have a negative impact on the competitiveness of the industry as a whole.

There was some discussion on the CCA’s submission in response to the federal government’s seven draft policies under the Species at Risk Act. The submission was written from the perspective of how to further improve those policies.

The CCA recommends a strong stewardship approach as the best way to engage with the agriculture community in species at risk conservation, to further include socio-economic considerations and the ability to better manage for multiple species.

Work progressing in the animal health and care committee focused on the next steps of the proposed regulatory amendments to Canada’s animal transport regulations and traceability. In domestic agriculture policy and regulations 16 CANADIAN MEAT BUSINESS March/April 2017

committee discussions focused primarily on the proposed animal transport regulation updates and CCA’s engagement with the government on Next Policy Framework consultations.

It’s anticipated the NPF agreement will be signed this summer.

Discussions were largely around Business risk management programming and related ongoing research and analysis.

In the value creation and competitiveness committee, the focus was on the chronic labour shortages in agriculture in general and meat processing continued, with the gap expected to increase in scope. Significant shortages in the meat packing plants result in major trade opportunities lost. Cargill indicates the plant in Alberta has 100-150 empty positions each day, and also at its Ontario plant an estimated 50-60 positions. The need to operationalize a working program specific to the agriculture and agri-food industry is critical. Updates on the Verified Beef Production Plus (VBP +) program were provided. VBP+ program has an opportunity to play a role in enhancing public trust, and has expanded efforts to consistently deliver training and verification services as a pathway to sustainable beef. The CCA will continue to ensure all this information is communicated clearly to governments, key influencers and stakeholders.

Building positive relationships is a core element of the CCA’s work and this much was clear at the CCA’s annual reception.

Fondly dubbed the ‘Canadian Beef, Beer and Whisky’ event, the CCA reception was a huge success, attracting one of the largest crowds of MPs, senators and other key influencers to our events ever. This was a pleasant surprise given there was a late vote in the House of Commons to compete with.

MP Mike Bossio delivered remarks on behalf of Agriculture and Agri-Food Minister Lawrence MacAulay and later met with representatives of the Cattlemen’s Young Leaders and the Young Cattlemen’s Council, the CCA’s flagship youth mentorship programs. There is no doubt that all of this advocating work will help support a strong and viable beef industry into the future. meatbusiness.ca

CANADIAN PORK HELPS SUSTAIN THE ECONOMY

By Kevin Grier

At Your Fingertips:

As an agriculture and food market analyst, I review livestock and meat industry numbers and data in order to assess market conditions and future economic prospects. Livestock farmers such as hog producers are also constantly assessing market conditions and future prospects.

At the same time, they are working tirelessly on many other fronts such as environmental sustainability, animal welfare and food safety. In each of these fronts, Canada’s hog farmers have been diligent and successful.

Canada is one of the leading exporters in the world of high-quality pork products. The pork industry is vital to the country, especially the top pork-producing provinces, Ontario, Manitoba and Quebec. It impacts many lives — not just the end consumers, but also those who make a living through the entire pork supply chain.

The numbers tell the story.

In 2015, the economic activity of all Ontario hog farms and farm suppliers, including grain farmers, animal health professionals, and machinery, totalled $3.5 billion. The overall economic activity generated by Ontario pork processors amounted to $3.6 billion. Ontario hog farms and pork processors were responsible for paying about $750 million in federal, provincial, and municipal taxes in 2015.

What do the numbers for all of Canada look like? In 2015, the Canadian hog farms sector created 69,000 jobs. When the processing sector is included, the jobs amount to 91,000. The wages, salaries, benefits, and other income paid to the hog farms, processors, and suppliers in 2015 totalled $7.2 billion; the federal, provincial, and municipal taxes collected from the industry that same year was $1.8 billion.

Small biz support & counseling

Cost-saving partnerships & programs

Lobbying & Research

Canada is the seventh largest global producer of pork and the third largest exporter of pork products, with $3.4 billion exported in 2016. As a country that ranks 28th in the world in terms of population size; this is an impressive number and proves how important the industry is, not only to Canada, but also to the rest of the world. Pork is one of the most consumed meat products, and the demand for pork is continuing to grow internationally.

The pork industry plays a key role in sustaining the Canadian economy and the global population. It contributes heavily to the financial security of many hardworking and dedicated industry professionals.

When you bite into your bacon, pork pot stickers or glazed ham, have confidence that you’re eating the best of the best.

Our farmers know what they’re doing, and they do it well.

Kevin Grier is an agriculture and food market analyst who provides consulting services to private companies, producer groups, financial service organizations and governments on economic research and market analysis. For more information, visit http://www.kevingrier.com/ Article courtesy of The Hamilton Spectator - http://www.thespec.com/opinionstory/7181531-canadian-pork-helps-sustain-the-economy/

meatbusiness.ca

Join Today! www.cfib.ca/agri March/April 2017 CANADIAN MEAT BUSINESS 17

CANADIAN PORK RESPONDS TO GLOBAL DEMAND AND BREAKS EXPORT RECORDS AGAIN Recently released 2016 Canadian pork export statistics show the Canadian pork industry can fill global demand when favourable terms of access to foreign markets exist. The Canadian Pork Council (CPC) takes a proactive position in support of international market access. It is a strong advocate for pursuing new or expanding existing trade agreements to increase market access or prevent deterioration in Canada’s competitive position in a market.

“Pork producers understand that market access is of paramount importance to the sustainability of the country and the hog industry,” stated CPC Chair Rick Bergmann. “The development of international market opportunities like Japan and China creates Canadian jobs across the country, attracts investment and contributes to growing the economy.”

In 2016, the pork industry exported 1.246 million tons of pork value at $3.8 billion to over 100 counties. The United States, China and Japan remain Canada’s top three pork export markets in both volume and value. Japan continued as a high valued market worth $1.07 billion for Canadian pork. Demand for Canadian pork in the Chinese market increased by 144 per cent in 2016. Canada shipped approximately 12,500 forty-foot shipping containers filled with 312,000 tonnes of Canadian pork across the pacific to China. The $580 million in sales of Canadian pork to China is an increase of 157 per cent.

18 CANADIAN MEAT BUSINESS March/April 2017

“Canadian hog producers, pork processors and meat traders and the many other companies in Canada that provide inputs and services to our industry have a very strong interest in Canada aggressively pursuing further progress toward reducing agri-food trade barriers and trade-distorting subsidies, and achieving additional market access,” added Bergmann.

The globally competitive Canadian hog and pork industry generates $13.1 billion in economic activity and 31,000 onfarm jobs. Another 69,000 Canadians rely on the pork sector for their livelihoods.

Well over 70 per cent of the industry’s output is now exported, with pork and pork products shipped to almost 100 countries.

For more information, visit http://www.cpc-ccp.com/

meatbusiness.ca

JARVIS CANADA REPAIRS ALL MESH APPAREL For Canadian meat industry companies needing repairs to damaged or worn mesh apparel, Jarvis Industries Canada Ltd., located in Calgary can do the job.

Jarvis has the expertise, equipment and technology to quickly and efficiently repair mesh apparel used in kill floor and processing procedures.

Jarvis Industries Canada Ltd.

World Leader in Meat Processing Equipment meatbusiness.ca View tools

on our website

3915A-78th Ave. S.E. Calgary, Alberta T2C 2J6 Tel: 800 661-8493 / 403 236-5350 Fax: 403 279-8005 E-mail: info@jarviscanada.com March/April 2017 CANADIAN MEAT BUSINESS 19 Website: www.jarviscanada.com

PORK FARMERS HOPE TO RESEARCH IMPROVEMENTS WITH LATEST $1.8 MILLION

By Dylan DaCosta

Researchers are now digging deeper in their search for improvements for pork producers with the latest $1.8 million in funding from the federal government. The research funding, sparked in part by consumer concerns for improving humane treatment of pigs, could yield new information for farmers across Canada, including Wilmot Township.

“Our government is pleased to support the pork sector with this investment. This investment in research in animal health and welfare helps respond to the interests of consumers and will help put more money in the pockets of our producers,” said Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food, in the funding’s announcement earlier in 2017.

“I really applaud the federal government for taking money and saying that we really want to make sure the research happening is meaningful,” said Stewart Cressman, a Wilmot farmer who chairs Swine Innovation Porc, the not-for-profit group that facilitates research in the Canadian swine sector.

Swine Innovation Porc works with the people in government, academia and the industry who need to partner on this research. The goal is to enhance the profitability of the Canadian pork industry and bring the latest innovations to the market.

The current batch of study is done by nearly 30 researchers, with more than a dozen universities and research centres involved.

With extra funding coming so late in the window — the five-year program concludes in about a year — it gives researchers a chance to delve deeper into existing projects where funding had ran out.

“It’s not practical to start new research, but there is existing research that can use the funds,” said Cressman. “There are things, based on the preliminary results, that can look into even more with extra money.”

One area that will now get additional research is the idea of lining slat flooring in hog barns with a pour-on rubber compound, to see if it can reduce lameness in pigs. Original research had looked just at the design of the slat itself, but the latest government funds will now allow a deeper look into adding a rubberized coating.

opposed to a complex diet with milk and proteins) is cheaper without having a significant impact on how many days it takes for a pig to get to market.

A grading system (similar to that of beef) is also being tested, with new technologies that could evaluate internal qualities of the meat. If these tools can accurately read the level of marbling (higher levels of fat end up costing more in a restaurant) then meat could be graded in a single, double or triple A category.

All of these things can impact farmers across the country, including right here in Wilmot and Wellesley. Some research takes a couple of years before new techniques become commonplace, while other things are able to be implemented right away.

And of course, with research comes the need to actually get that information to those who are going to benefit from it, and to get them involved with the process — the group calls this a “knowledge transfer.”

“We’re not doing research just for the sake of research,” said Cressman. “We want to make sure knowledge gets transferred to the users.”

The federal government has invested almost $15 million dollars in total to this type of swine research dating back to 2010. Back then, the Swine Cluster 1 research program began with 14 different research projects on topics like nutrition, animal welfare and genomics. In 2013, the Swine Cluster 2 began and now this latest $1.8 million will further fund that research.

Research in this cluster concludes in March of 2018, which will allow another batch of new research projects to begin.

Article courtesy of New Hamburg Independent https://www.newhamburgindependent.ca/news-story/7174698-pork-farmershope-to-research-improvements-with-latest-1-8-million/

Another research project involves looking into the diet of pigs at the nursery stage — research out of the University of Guelph has found that placing pigs on a “dry” diet (as 20 CANADIAN MEAT BUSINESS March/April 2017

meatbusiness.ca

TEMPLE GRANDIN NAMED TO THE NATIONAL WOMEN’S HALL OF FAME Temple Grandin, Colorado State University professor of animal sciences and world-renowned autism spokesperson, has been named to the National Women’s Hall of Fame. Grandin is one of only 10 women to receive the prestigious honor this year.

“We are pleased to add 10 American women to the ranks of inductees whose leadership and achievements have changed the course of American history,” said Betty M. Bayer, the Hall’s co-president and professor of women’s studies at Hobart and William Smith Colleges.

A professor of animal sciences for more than 20 years, Grandin has made enormous contributions to the livestock industry.

Her autism allows her to think in pictures, and that ability has made her a visionary in her field. Her insights into animal behavior shaped innovative approaches to livestock handling, including methods and designs for humane slaughter that have become the industry standard.

“Honoring Dr. Temple Grandin in this esteemed group of women not only speaks to the power of her research and advocacy, but also her impact as a role model for young women everywhere,” said Colorado State University President Tony Frank. “Early in her career, her determination helped her break into what was a largely male-dominated animal production industry, and she continues to serve as an advocate for women in the sciences, for young people with autism, and for anyone unwilling to let artificial boundaries stand in the way of their personal and professional success.”

meatbusiness.ca

The Hall notes that Grandin’s life and work have revolutionized the study of autism, reflected in the title of her Ted Talk: “The World Needs All Kinds of Minds.”

Grandin’s research, teaching and international consultation on autism, animal behavior and handling as well as advancing quality standards and assurance in the meat and livestock industries were highlighted in the announcement.

Women selected for the National Women’s Hall of Fame must be citizens of the United States, either by birth or naturalization, and their contribution must be of national or global importance and of enduring value.

Previous inductees include such luminaries as Madeleine Albright, Louisa May Alcott, Maya Angelou, Susan B. Anthony, Hillary Rodham Clinton, Sylvia Earle, Ella Fitzgerald, Ruth Bader Ginsburg, Georgia O’Keefe, Rosa Parks, Sally Ride, Eleanor Roosevelt and Oprah Winfrey.

The new inductees will be celebrated at the Hall’s biennial induction ceremony in September.

In 2010 Grandin was honored in Time magazine’s “100 Most Influential People in the World,” and in 2016 she was inducted into the American Academy of Arts and Sciences.

March/April 2017 CANADIAN MEAT BUSINESS 21

INCREASED COMPETITION AND WEAKER CONSUMER SPENDING TAKE A BITE OUT OF CANADIAN FOOD SERVICE INDUSTRY IN 2017 SOLID GROWTH EXPECTED FOR CANADIAN FOOD MANUFACTURERS An increasingly competitive landscape and weakening consumer spending will limit revenue growth to 3.9 per cent for Canadian restaurants this year, according to The Conference Board of Canada’s latest Canadian Industrial Outlook: Canada’s Food Services Industry. That would be the industry’s weakest performance since 2011.

“As restaurants vie for Canadians’ food dollars, they will not only be competing against each other for market share, but with grocery stores as well. Dining at home is becoming relatively attractive compared with eating out, given slower growth in income and the fact that prices at restaurants have steadily risen despite a drop in grocery prices over the last year,” said Michael Burt, Director, Industrial Economic Trends, The Conference Board of Canada. “Increased competition in the industry may drive the less-profitable independent restaurants out of business as they struggle to compete with chains on food prices and keeping up with food trends.”

With consumer spending set to moderate due to weak income growth, expansion in restaurant traffic could slow, intensifying the fight for market share. The number of restaurants in Canada has grown at a rate of 1.8 per cent per year since 2011, well above the 1.1 per cent growth in total population. Meanwhile, steady price growth at restaurants and declining prices at grocery stores are expected to play a role in more consumers opting to dine at home. While restaurant prices grew by 2.3 per cent in December 2016, grocery prices contracted by 2.8 per cent.

One bright spot for the industry is strong growth in breakfast traffic, which rose by 6.3 per cent in 2016 and now accounts for just under one in five restaurant visits. While it has historically been seen as a low-margin, low-revenue market, some fast food restaurants are capitalizing on rising demand for fast and portable breakfast options by introducing “allday breakfast”.

Tourism activity in 2017, including food services, should benefit from Canada’s 150th anniversary of Confederation and Montreal’s 375th anniversary of its founding.

However, over the longer term, the Canadian dollar is projected to gradually strengthen, reducing one of the key factors that has made Canada an attractive destination for international visitors over the last two years. Consequently, growth in spending from international and domestic customers is expected to slow.

Although weakening margins continue to take a bite out of profits, the financial picture of the food services industry will remain stable through 2017. Cost growth will be held in check by weaker food prices and while sales growth will slow, it will remain positive. All in all, pre-tax profits in the food services industry are forecast to reach $1.6 billion in 2017.

22 CANADIAN MEAT BUSINESS March/April 2017

CANADA’S FOOD MANUFACTURING INDUSTRY Canada’s food manufacturing industry remains a strong performer in the manufacturing sector and can expect solid sales growth of 4.1 per cent in 2017, according to the report.

Canadian food manufacturers will continue to benefit from a strong export outlook largely driven by improving U.S. demand. However, amid growing uncertainty regarding the future of Canada’s trade relationship with its largest trading partner, free trade agreements, such as The Comprehensive Economic and Trade Agreement (CETA), will continue to pave the way for Canadian food exporters to explore new market opportunities and diversify their customer base.

CETA will see the elimination of tariffs on most processed foods providing Canadian food manufacturers preferential access to the EU marketplace and a competitive advantage over producers from countries without similar agreements in place.

Weak agriculture commodity prices limited cost increases in 2016 and allowed profit margins to improve. As well, some manufacturers, particularly those that rely on imported inputs, will benefit from a decision by the Canadian government to repeal or amend roughly 200 different tariffs on imported food ingredients to support the competitiveness of Canada’s food manufacturers. However, rising competition among food retailers is limiting the industry’s ability to raise prices for grocers.

Industry margins are expected to soften modestly to 4.0 per cent in 2017, but revenue growth will be sufficiently strong to allow pre-tax industry profits to climb to $4.2 billion.

HIGHLIGHTS • The number of restaurants in Canada has grown at a rate of 1.8 per cent since 2011, well above the 1.1 per cent growth in total population.

• Pre-tax profits in the food services industry are forecast to reach $1.6 billion in 2017.

• Canada’s food manufacturing industry is forecast to grow 2.4 per cent in 2017.

• Pre-tax profits in the food manufacturing industry are forecast to climb to $4.2 billion this year. http://www.conferenceboard.ca/e-library/abstract.aspx?did=8670

meatbusiness.ca

RANCHING OPPORTUNITIES: BEEF INDUSTRY FACES CHALLENGES, OPPORTUNITIES Delegates at the recent Ranching Opportunities 2017 conference at Olds College were given an update on the verified sustainable beef framework being developed by the Canadian Roundtable for Sustainable Beef (CRSB). The 2017 conference attracted 185 delegates, a record number for the annual livestock information sharing and industry promotion event.

Fawn Jackson, Executive Director of the CRSB, which is dedicated to the promotion of responsible beef production in Canada delivered the following comments at this year’s conference: “We are going to be launching the verification framework in Q4 of 2017,” said Jackson. “So what is it? It is going to be a label on product that says that that product was verified to be sustainable.

“It is going to cover five principles of sustainability. It is going to be developed transparently through both the multi stakeholders that sit at the CRSB but also in public consultations.

So the message that is going to go with verified sustainable must be consistent and clear and accurate and transparent and scientifically sound.”

The national beef sustainability assessment was launched in October 2016.

“This is really exciting because it speaks so well to the quality of beef production that is happening in Canada,” said Jackson. “It is also helping set a path forward on how we are going to further improve it.”

The assessment has two main sections: the current state of the industry and also a strategy portion of where things are going. The assessment looked at the environmental, social and economic sustainability of the beef meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 23

industry in Canada.

“The environmental assessment includes a very standard way of looking at the environmental impact of a product, a sort of a how much do you use type thing,” she said. “It assesses things like climate change, fossil fuel use, water use, air pollution, water pollution, all of those sorts of things.

It also has a land use assessment.”

Officials assessed 77 farms as part of the environmental assessment.

“What we found out is that we use 44.2 million acres of pasture, 3.2 million acres of hay, 3 million acres of barley and 1.7 million acres of other feed crops. So of all the crops that are produced in Canada, beef production uses about nine percent of those crops. We do account for about 33 per cent of agricultural land in Canada”, said Jackson.

The study assessed the capacity of land used for beef production to support wildlife habitat. The results showed that within the agricultural landscape beef contributes the largest proportion of potential wildlife habitat, contributing 68 per cent of the potential wildlife habitat on 33 per cent of total agricultural land.

“Having an integrated landscape is extremely important,” she said.

The study looked at the beef industry’s impact on water, focusing on water use, water risk and pollution potential.

To produce one kilogram of boneless beef, it takes 631 litres of water (surface and groundwater) of which 80% is used for feed crop irrigation and 19% for drinking water for cattle.

“The link between water risk (i.e. water stress, inter-annual variability and drought severity) and cattle density was explored, and showed that 70 per cent of cattle production takes place in medium to high water risk areas,” the report states.

The study looked at meat waste and found that 19% of edible bone-free meat is wasted through processing, retail and consumption.

“It is estimated that reducing meat waste by 50% could save 60 litres per kilogram of packed boneless beef delivered and consumed.”

On the social assessment side, the study looked at working conditions in the industry and animal welfare.

24 CANADIAN MEAT BUSINESS March/April 2017

“Most indicators related to working conditions showed very low to low risks. Farmer and packers scored well on hourly wages, and health and safety training and prevention.

“The Canadian beef industry showed low risks in the animal health and welfare section of the assessment, which is reflective of the industry’s investment in developing and disseminating the Code of Practice for Handling and Care of Beef Cattle.”

On the economic assessment side, the study looked at producer viability.

“Long-term average margins from a 200-head cow herd of $9,650 with paid labour of $7,909 provides a total annual income of $17,559. This is below Statistics Canada lowincome cut-off, and does not support an average family.

These operations must rely on other sources of income.”

The study also looked at consumer resilience.

“Long-term trends include a growing middle class and shifting consumer demographics with more urbanization.

Medium-term perceptions are impacted by food awareness, including perceptions of food safety, beef quality, nutrition and healthfulness of beef. Short-term shifts may be due to prices and availability of substitute protein options.”

As a result of the assessment, the CRSB outlined a number of goals, including the following (quoted from report): • build a strong and more united Canadian beef sustainability community.

• enhance ecosystem services and biodiversity on lands managed by beef producers.

• reduce post-harvest meat waste.

• promote farm safety and responsible working conditions.

• promote excellence in animal care.

• increase the financial viability of beef production in Canada.

• increase demand for Canadian beef through consumer awareness of sustainable beef production.

“The Canadian beef industry has a strong desire to see improvements that reduce its environmental footprint and support society’s values while at the same time help it remain economically viable,” the report states.

The full report is available at www.crsb.ca

meatbusiness.ca

ONTARIO BEEF PRODUCERS LOOK FOR MORE BUSINESS IN THEIR BACKYARD

By Owen Roberts, Farm Credit Canada

Ontario beef farmers are embarking on a major regional marketing initiative designed to distinguish their product from others, and help producers here be more profitable.

The three-year, $1.8-million initiative is underway now. Cory Van Groningen, chair of the Beef Farmers of Ontario’s marketing and promotions committee, says the effort is meant to increase producers’ bottom line by creating more opportunities for streamlined products.

The initiative will complement broader, national programs that promote beef, while taking into account Ontario’s unique market position and product system – one influenced by higher costs of production, a more segmented population and pressure from other beef markets all over the world.

IDENTIFYING HIGH-VALUE MARKETS To Van Groningen, whose family runs vertically integrated operations in Simcoe and Stoney Creek, a key is identifying and servicing high-value local markets.

responsibly by Ontario farmers, and processed by Ontario companies,” he says.

Other features result from production practices, such as selecting for tenderness, consumers’ main driver. Van Groningen notes such features come together in the successful Ontario Corn Fed Beef program. It distinguishes beef by its point of origin, as well as by particular production practices.

Expect the regional marketing initiative to study the corn-fed beef program’s success for inspiration and guidance.

“What else can we do in the province that’s like this program?” asks Van Groningen. “Those are the kinds of opportunities we need to look for.”

He points to small Ontario producers who have captured a consumer niche with products, such as high-quality, allnatural beef, and can support their families with small herds because they can charge a premium for those products.

That’s where he sees growth potential for beef production in Ontario, with producers raising beef animals with specific traits, such as low backfat, and processors having less carcass waste.

And, he says, in Ontario, the size of an operation is not a key factor for success.

“Here, good things start small. To grow the sector, we need more seeds in the ground, more producers taking this approach.”

Number-wise, the Ontario beef sector faces some challenges.

Over the past decade, production has fallen 13 per cent. The provincial Ontario cow herd has shrunk by more than 30 per cent. And like the rest of the nation’s beef industry, it’s suffered from decreased beef consumption, too.

ADAPTING TO A NEW MARKET Van Groningen doesn’t expect the regional marketing initiative to reverse the shrinking herd. But, he says, that may not be all bad. He says given the changing market, one scenario is that producers might be able to be profitable with fewer cattle, if they can get more value from them.

He believes the best opportunities will stem from capitalizing on consumer confidence in Ontario farmers. That means promoting local products, and on-farm traits, such as environmental sustainability.

“A distinguishing feature of Ontario beef is that it’s raised meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 25

CCA’s John Masswohl in Chile, with International Trade Minister François-Philippe Champagne

TPP COUNTRIES DISCUSS TRADE IN CHILE On March 14-15, International Trade Minister François-Philippe Champagne represented Canada at a meeting organized by the Government of Chile and chaired by the Pacific Alliance to discuss Integration Initiatives in Asia-Pacific. The Pacific Alliance, a pro-trade group comprised of representatives from Chile, Colombia, Mexico and Peru, invited member countries and signatories of the TPP to the dialogue along with representatives of South Korea and China. In addition to being a signatory of the TPP, Canada achieved observer country status with the Pacific Alliance in 2012.

John Masswohl from the Canadian Cattlemen’s Association (CCA) travelled to Chile to emphasize the importance of the TPP and international market access to the livelihood of Canadian beef producers. Masswohl had the opportunity to interact with Minister Champagne and other members of the Canadian delegation as well as compare views with representatives from other countries.

an opportunity for the 11 remaining TPP countries to discuss options for continuing the process of liberalized trade so that each of our economies can grow. The dialogue was successful in that the 11 confirmed that they are strongly committed to proceeding and instructed their negotiators to meet to find a path forward with respect to implementation of substantive elements of the TPP Agreement.

Signed by 12 countries in February 2016, the TPP represented a new era of multi-lateral trade that could bring together consumers and producers from a diverse section of Pacific-Rim cultures and nations by establishing a stronger relationship based on sound science and market demand.

Most importantly, TPP set a new and high-level precedent for market access for the trade in beef and will serve as an example for other countries to follow.

Minister Champagne later stated that, “What is paramount for me as international trade minister is to make sure that Canadian producers, consumers and workers have preferential market access to the very important economies in Asia Pacific.”

Since the United States withdrew from the TPP in January, the concern has been whether the hard-won benefits of the TPP could be salvaged. When the Chile meeting was announced, the CCA was encouraged that it would provide 26 CANADIAN MEAT BUSINESS March/April 2017

The CCA supports this progress as a strong signal that the substance of the TPP in some form remains very much in play and congratulated International Trade Minister Champagne for leading the discussion in Chile towards this outcome. The CCA will continue to work with the Government of Canada and allies abroad to support their efforts to bring the TPP substance into effect. meatbusiness.ca

YOUR BUSINESS, YOUR ASSOCIATION, YOUR OPPORTUNITY.

save the date

April 4-6, 2017

Rancho Bernardo Inn, San Diego, California

Join industry leaders to discuss issues relevant to the meat industry and to the success of your business including:

Connect with old and new friends in sunny California over 3 days.

✓ Labor and Employment

the Supplier Showcase Reception

Enjoy networking at the John Duyn Memorial Golf Tournament and

✓ Economic Insights

and Sausagefest.

✓ Food Safety and Regulatory ✓ Communications and Public Relations ...and more!

GET INVOLVED

by participating in NAMI Committee meetings.

Open to all and a great way to learn even more about issues affecting your business and the entire meat industry.

Learn more

www.meatinstitute.org

meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 27

UFCW SHOCKED AT FUNDING CUT FOR ENGLISH CLASS AT MAPLE LEAF FOODS

By Riley Laychuk, CBC News

English as an additional language training for workers at a Brandon business could be scaled back or cut entirely due to a cut in funding.

United Food and Commercial Workers (UFCW) Union Local 832, which represents workers at Brandon’s Maple Leaf Foods processing plant, says the federal government has given them notice that their funding will be “largely or completely” cut at the end of June.

“We’re very disappointed that the government has made this decision,” UFCW Local 832 president Jeff Traeger told CBC News, adding that it was an “absolute shock.”

“We’ve only just begun to figure out what exactly the impact will be,” Traeger said. “Obviously it is going to be a significant impact.”

Traeger believes EAL programming will continue in Brandon in some capacity beyond June. It’s the only program of its kind run by the UFCW in Manitoba.

It’s not just happening in Brandon, according to Traeger. He said programs across the country will be affected.

UFCW Local 832 currently offers unionized workers at the plant stage one and most of stage two English language training. The classes are funded by the union, the federal government and by Maple Leaf, Traeger said.

“UFCW is lobbying the federal government to try and get them to change their minds related to this funding because it doesn’t just affect Manitoba, it affects folks right across Canada,” he said.

He said about 200 people use the program each year. Most of them are Maple Leaf workers, however family members of those workers are also allowed to take part. The union has been running English as Additional (EAL) classes for more than a dozen years and has graduated 1,500 people, Traeger said.

Assiniboine Community College, which also offers EAL classes in Brandon, said earlier this month that its funding was also being cut — from $730,000 this year to just $190,000 next year.

He said some graduates have even gone on to open their own businesses in the region.

Traeger and a union spokesperson both couldn’t provide CBC News with exact figures on how funding for the program would be impacted.

28 CANADIAN MEAT BUSINESS March/April 2017

The federal government told CBC News earlier this month that it could not discuss funding decisions for specific organizations. Maple Leaf Foods did not respond to requests for comment from CBC News. http://www.cbc.ca/news/canada/manitoba/ufcw-maple-leaf-brandonfunding-1.4023356

meatbusiness.ca

FOREIGN WORKERS AND THE CANADIAN STORY

YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 2014-05-16 1:20:17 PM

Dan Kelly, President & CEO, Canadian Federation of Independent Business

Watching the TV reports on refugees crossing the border from North Dakota into the province where I was born provokes many thoughts and emotions. First, as a former Manitoban, I wonder at the anxiety that would motivate one to leave the US on foot to venture off, in the middle of a Prairie winter, to a new country. Second, as a human being, I sympathize with anyone seeking a better life for themselves and their families in a country such as ours. And third, as a Canadian, I can understand why some worry about whether it is a good thing for us to tolerate what may appear to be illegal immigration, people who are ‘jumping the queue’ or potentially taking jobs from fellow Canadians.

Canada’s immigration system has many strengths. Not only do we allow, per capita, a larger annual stream of new immigrants than most other countries, we ensure there is a blend of economic immigrants, those pursuing family reunification, and those seeking refuge from war and devastation. In my travels around the world speaking to business leaders and policy makers, many marvel at Canada’s success at settling immigrants. And while I modestly acknowledge the praise, I am always careful to note that, despite the recent uptick in refugee claims, we do have a few important advantages that help in that success, meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 29

such as a single border with another wealthy country and the natural barrier of oceans which insulate Canada from the waves of border crossings experienced in many other first world countries.

vacancies. Our immigration system ignores these people altogether. Not since 2013, prior to the revision of the TFW program, have employers been allowed to find people keen to do these jobs and bring them to Canada for work.

But Canada’s immigration system does have its problems too. One is the ongoing skills mismatch. Both the economic

One of the legitimate criticisms that led to the revision of the TFW program was that the positions it filled were actually not temporary at all. This is absolutely true. Most employers would much rather hire a Canadian or permanent resident, that is, if one was available and interested in the work.

“ ONE OF THE LEGITIMATE CRITICISMS THAT LED TO THE REVISION OF THE TFW PROGRAM WAS THAT THE POSITIONS IT FILLED WERE ACTUALLY NOT TEMPORARY AT ALL. THIS IS ABSOLUTELY TRUE. MOST EMPLOYERS WOULD MUCH RATHER HIRE A CANADIAN OR PERMANENT RESIDENT, THAT IS, IF ONE WAS AVAILABLE AND INTERESTED IN THE WORK.” immigration stream and a hastily revised Temporary Foreign Worker (TFW) program are geared almost entirely to bringing in highly skilled and highly educated immigrants only. This sounds like a good thing on the surface, but misses the fact that many of the jobs that are needed in Canada’s economy are in the trades or lower skilled categories.

I think the general public forgets that, for a variety of reasons, there are a growing number of jobs that Canadians just don’t want. Consider jobs that are unconventional or physically demanding, like working at a meat processing plant, or those where the work is done outdoors in the high heat of summer or dead cold of winter. Or the many jobs where that brand new university degree is not particularly relevant or even needed. In many of these cases, Canadians are just not lining up to apply for these positions. In fact, right now there are more than 300,000 full and part-time jobs available across the country.

Meanwhile, there are many immigrants and foreign workers overseas who would love to come to Canada to fill these

In response to this ongoing dichotomy, the Canadian Federation of Independent Business (CFIB) has continually called on the federal government to create pathways to citizenship for lower-skilled foreign workers. Our proposal of an Introduction to Canada Visa would allow TFWs to apply for permanent residency after a 1-2 year period of time building Canadian experience and local connections. Such a policy could also be used to bring some undocumented workers into legal status.

Our history as a nation is full of stories of newcomers who sought a better life here for their families, who came, landed, rolled up their sleeves, and did the work that needed doing.

My Ukrainian and Irish ancestors came to Manitoba not to take jobs at universities or labs, but to work in factories or farms or start businesses that eventually employed other Canadians.

While our immigration system has many strengths, I’m hoping we can find a way in Canada’s next 150 years to remain true to our values, honour our immigrant history, and ensure that we have the workers we need to write the next chapter in our national story.

This column was first published in the Corriere Canadese on January 3, 2017.

Dan Kelly is President of the Canadian Federation of Independent Business (CFIB).

In this capacity, Dan is the lead spokesman and advocate for the views of CFIB’s 109,000 small-and medium-sized member businesses across Canada, including 7,200 agri-business members. Follow Dan on Twitter @CFIB and learn more about CFIB at www.cfib.ca.

CMC WELCOMES INVESTMENTS IN FOOD SAFETY AND INNOVATION IN BUDGET 2017 The Canadian Meat Council (CMC) says Canada’s meat packing and processing industry welcomes investments in food safety and innovation that was tabled in Budget 2017.

“We were very pleased with the government’s commitment to the Canadian Food Inspection Agency,” said Christopher White, President and CEO of the Canadian Meat Council.

“Food safety and the integrity of the system is paramount and we look for ways to continue to work with CFIA to deliver on their mandate.”

“CMC also welcomed the government’s commitment to deliver through Innovation Canada the six Economic Growth Strategy Tables, in particular agri-food, which is of paramount importance to the industry,” added White.

30 CANADIAN MEAT BUSINESS March/April 2017

“As the budget document noted, Canada is the world’s fifth largest agri food exporter.

CMC is always looking to see our export markets grow in an increasingly competitive global market, and there are elements within the budget that will enable us to do so,” said White.

Canada’s meat processing industry includes 400 federally inspected establishments that not only provide safe, high quality protein for consumers, but also add jobs and contribute significantly to local economic activity in both rural and urban Canada. With annual sales of $28 billion, exports of $6.1 billion, and 66,330 jobs, the Canadian meat industry is the largest component of this country’s food processing sector. http://www.cmc-cvc.com/ meatbusiness.ca

HOW CANADA CUT FOREIGN WORKERS AND HOBBLED ITS MEAT INDUSTRY

By Andy Hoffman, Mario Parker and Jen Skerritt, Bloomberg

For a glimpse at how Donald Trump’s “America first” approach to immigrants may affect the meat industry in the U.S. — the world’s largest beef producer — look no further than across the northern border to Canada.

Three years after former Prime Minister Stephen Harper tightened restrictions on foreign workers to force employers to hire more Canadians, processors from British Columbia to Nova Scotia say the move compounded a labor shortage from which they have not recovered. The Canadian Meat Council estimates the industry has 1,650 vacancies at 19 rural abattoirs, or 9 percent of total employment at those facilities.

Carving up carcasses and packaging meat is messy, physically demanding work. And while workers get health and other benefits, the starting pay is below the national average.

That’s why the $24.1 billion ($18.4 billion) Canadian industry — like its neighbor in the U.S. — has grown increasingly dependent on foreign labor. Maple Leaf Foods said last year it was seeking to hire Syrian refugees to fill job shortages.

“We’ll take anybody that is willing to work,” said Ron Davidson, director of government and media relations at the Ottawa-based meat council, which represents about 50 companies including Maple Leaf, Olymel SEC and the Canadian units of Cargill and JBS. “We’re being suffocated.

If you can’t get workers at the front end of the system, everybody pays the price.”

More severe measures proposed by Trump to limit foreign workers might be just as disruptive. U.S. plants, including pork and poultry facilities, already face labor shortages.

Immigrant workers account for 35 percent of the 441,000 animal slaughtering and processing jobs, according to 2015 data from the U.S. Census Bureau.

Trump has pledged to protect manufacturing jobs by ditching what he considers unfair trade deals, pressuring companies not to make products outside the U.S., and building a wall on the Mexican border to keep out undocumented workers.

Citing a terror risk, he banned visitors from Syria, Iran, Iraq, Sudan, Somalia, Libya and Yemen. The restriction was overturned by an appellate court panel last week, but the president vowed to impose a new ban and make good on his promises to limit foreign workers.

Such moves aren’t likely to create more jobs for Americans in U.S. meat plants, according to David Swenson, an economist at Iowa State University in Ames. He estimates three-quarters of the workers at processing plants in Iowa, the largest pork-producing state, are immigrants, mostly from Mexico. Domestic workers probably won’t take those jobs, he said.

“It’s damn hard work,” Swenson said. “Historically, they have depended on those folks.” meatbusiness.ca

That was the experience in Canada, which is also a major meat exporter and employs about 66,000 people. Processing plants offer full health and dental benefits, but hourly wages start at C$13-C$19 ($9.90-$14.50), below the national average for natural-resource and agricultural workers of about C$25.75, government data show. That’s made it difficult to use only Canadian workers.

“We are really concerned going forward how we’re going to be able to fill our positions,” said Claude Vielfaure, president of HyLife Ltd., a Manitoba-based pork processor that exports C$650 million of meat annually to countries including the U.S., China and Mexico. “If we don’t have the people, we’re just not going to grow, and we’re going to fall behind.”

Under a Canadian government program, employers can hire foreign nationals to fill jobs not being taken by citizens or immigrants.

HyLife obtained a permit to bring workers to its processing plant in Neepawa, Manitoba, before the government overhauled its temporary foreign workers program and has worked aggressively to recruit and retain staff, Vielfaure said. The company still may face limits on growth because it can’t produce specialty or higher-value cuts without enough employees, he said.

The new Liberal government in Canada, led by Prime Minister Justin Trudeau, says it may drop some of the restrictions and create a path to permanent residency, which should ease the shortages for the meat industry. A new federal budget is due in coming weeks.

“We know that the previous government’s approach to the program wasn’t working, and we’ve already begun rolling out a plan to make this program work for workers, for businesses, and for the Canadian economy,” Jean-Bruno Villeneuve, the press secretary for the Office of the Minister of Employment, Workforce Development and Labour, said in an email.

For now, Canada’s meat industry says its labor shortage will get even worse if its competitors in the U.S. are hit with more restrictive rules on using foreign workers, as Trump has proposed. American companies that can’t hire Somalis or Mexicans may try to move some processing capacity to Canada.

“They will be forced to go where they can find workers,” the meat council’s Davidson said, adding that animal welfare could be at risk if Canadian plants can’t handle the overflow.

For more information, click on https://www.bloomberg.com/news/ articles/2017-02-17/how-canada-curbed-foreign-workers-and-hobbled-itsmeat-industry

March/April 2017 CANADIAN MEAT BUSINESS 31

FOODSERVICE INDUSTRY CREATES 11,000 NEW JOBS IN 2016

By Chris Elliott, Senior Economist Restaurants Canada

Restaurants Canada has reported that total employment in Canada’s foodservice industry rose to a record 1,244,600 in 2016, according to Statistics Canada’s Labour Force Survey. Foodservice was among the top private-sector job creators in 2016 with employment rising by 11,000 jobs, which is more than double the 5,400 jobs created in 2015. Some other sectors pale in comparison – retail net employment rose by just 2,000 jobs, while manufacturing shed 17,600 jobs. With the increase in employment, restaurants remain the fourth-largest private sector employer in the country.

FULL-TIME JOBS OUTPACE PART-TIME EMPLOYMENT The misperception that foodservice offers mostly parttime employment is just that – a misperception. Full-time employment in the foodservice industry rose by 7,500 to 690,900 in 2016, while part-time employment increased by 3,500 to 553,700. These numbers sharply contrast with overall employment in Canada, where most of the jobs created in 2016 were part time.

MORE SENIORS CHOOSE TO WORK IN RESTAURANTS Foodservice accounts for nearly 7% of all jobs in Canada, and one in five jobs for youth under the age of 25. Young people account for 42% of the restaurant industry workforce and restaurants are the number one source for first-time jobs. Nevertheless, a growing number of seniors are working at restaurants, either to keep active or supplement their income. In 2016, the number of workers 65 years of age and older climbed to a record 23,800. Seniors now account for 1.9% of total foodservice employment compared to just 0.5% in 2000.

ONTARIO LEADS THE PACK Ontario led the country with the creation of 17,400 foodservice jobs in 2016, after shedding 2,600 jobs in 2015. Foodservice employment in British Columbia rose by a healthy 2,400 jobs. Alberta had no such luck, losing 1,400 foodservice jobs 32 CANADIAN MEAT BUSINESS March/April 2017

due to the recession and higher minimum wage.

For more information, visit https://www.restaurantscanada. org/on-a-hiring-spree-foodservice-creates-11000-newjobs-in-2016/ DID YOU KNOW? Canada’s restaurant industry generates $75 billion in annual sales, which equals almost 4% of Canada’s economic activity.

The restaurant industry directly employs more than 1.2 million people, or 6.9% of the Canada’s workforce - making it the country’s fourth-largest employer.

Canada’s restaurants employ 520,000 young people under the age of 25 - that’s one in five youth jobs.

Restaurants provide more first jobs than any other industry.

Twenty-two per cent of Canadians got their career start in a restaurant or foodservice business.

With more than 94,290 locations, the restaurant industry contributes to urban and rural communities across Canada.

Restaurateurs contribute nearly $300 million annually to charitable causes.

Going out to a restaurant is the number one preferred activity for spending time with family and friends. meatbusiness.ca

A BUTCHER’S 12 STEP PROGRAM

By Angus Burger

As butchers and meat cutters, we are trained to add value to just about everything we cut for our department. It’s a part of what we do and we always want to do a good job and make money for our employer.

There is something else we should be adding value to and that is ourselves. If your dream is to learn and advance your career, you’ve got to invest in yourself now. It’s actually simple and part of what we know to do best and that’s merchandising. But the trick is we need to merchandise ourselves. When you enrich yourself, you will grow and feel more confident and that will contribute to your overall happiness.

Here is my ’12 step program’ for you follow to begin to add value to yourself based on my experience in the meat industry: 1) Begin to realize that the most perishable item in your store is “your customers” for without them you have no job. Don’t run from the customer, engage them, help them, because in the long run, you are helping yourself. Remember many of them need your advice and expertise. When you provide good service, they will spread the good word about you. Should you decide to become an entrepreneur the assets that are your talents are transferable. There is no better way to add value to yourself than by becoming “indispensable”. The best way to keep your job in today’s economy is to be so valuable to your employer that they simply can’t do without you.

2) Don’t be satisfied with what you learn from your employer. Keep searching, keep reading and keep reaching for more knowledge about this business. A great place to do this is in your own store. You should read publications like Canadian Meat Business and search out other related platforms so you can interact with people in your company who are further along in their careers. The key is to care passionately about what you do.

3) Verbal and written communications skills need to be honed just like a good knife. Your mind needs to be sharp. I don’t care if you are hustling buggies in meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 33

the parking lot or cutting meat. One way to improve yourself is to read as it can drastically improve the way that you think and communicate without you noticing that it’s happening in real-time. It only has to be 15 to 30 minutes a day, but it has to be daily, not just whenever you feel like it. When you develop a habit of reading for 30 minutes (minimum) daily, you will start to see a difference in the way that you think, in the information that you are able to give to others, and the way that you see the world.

4) Too many people don’t understand the basics about the operation of their companies. Lean about other processes in your store. You may think you know things by just looking at it, but really try to find out what it takes to run a successful operation. All you have to do is ask a fellow worker and I am sure they would love to tell you about what they do. What you are doing is becoming more aware of the food store’s overall operations. So instead of wandering around the strip mall or sitting on a bench in front of the store, try spending time learning what makes your store run.

5) Always try to maintain a positive attitude. Be a part of the solution, never a part of the problem. If you want to be valuable to your company, then you need to contribute to its bottom line. In other words, you need to help it make money. Otherwise, it’s not worth it to your company to keep you around. Use your time and resources most effectively so that you connect back to the bottom line.

6) Often there are no greater timewasters in the workplace than being distracted by your fellow worker. There are people who love to gossip and spread rumors or who are constantly trying to catch your mistakes or those who are just negative all the time. Rise above all of this and focus on yourself and the job at hand.

7) Don’t be afraid to sing your own praises but not too loudly. As a general rule, your work won’t speak for itself, sometimes you must speak for yourself. You can really help yourself by making sure that managers and supervisors in your store understand the effort you put into your job and the results you produce. A bit of 34 CANADIAN MEAT BUSINESS March/April 2017

modest bragging will not only help you come promotion time, but it will also help discredit any back-biters.

8) When you pitch an idea to management, be prepared to defend your views. Also, be prepared to receive criticism. Management will challenge you simply to test your level of enthusiasm for the idea. Show some passion about it and you may get your idea implemented. Back up your idea by letting management know that you know what your competition is doing or not doing in regards to your idea.

9) I live by this statement and always will - don’t let someone make their problem your problem. I always carried a small notepad and pen with me and kept a record of any important issues. When someone comes to you and asks you to confirm something, they are often trying to cover their own butt and that’s not a sirloin butt. One negative person can destroy motivation in minutes. When they are negative, you be positive.

10) Don’t ask for more than you deserve by expecting to be highly compensated before you have provided one penny of value to the company. Throughout your career, evaluate what value you bring to your store. “Ask for fair compensation, but don’t price yourself out of the market. Employment is a two-way street, so make sure you are giving something for what you get.

11) Know which rung on the ladder is right for you. Do you want to be responsible for the success or failure of your store or company? If so, move up the ladder. Do you want to go home at 5:00 every day and forget about work until the next morning? Then moving up isn’t for you. Most people want to move up the ladder because that’s what they’ve been told they should do. But the really important thing is that you do your job to the best of your ability and you are happy doing it.

12) If you go through your workdays just trying not to get fired, then you are probably headed for trouble. Instead, push those negative thoughts out of your mind. Focus on the work you do and how you add value to your company. In return you will be adding value to yourself which will lead you to bigger and better things for you. meatbusiness.ca

meatbusiness.ca

March/April 2017 CANADIAN MEAT BUSINESS 35

36 CANADIAN MEAT BUSINESS March/April 2017

meatbusiness.ca