Our 100th Issue! by Meat Business Pro

March/April 2019

100

ISSUE

March/April 2019 201 Don Park Road Unit 1, Markham, Ontario, L3R 1C2 Phone: 905-470-1135 1-800-465-3536 Fax: 905-470-8417 Website: www.yesgroup.ca email: sales@yesgroup.ca

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March/April 2019 | 100TH ISSUE September/October 2018

Welcome to #100! By Ray Blumenfeld

Let’s Make a Deal By Scott Taylor

Talking Agriculture in 2019 with Lawrence MacAulay By Cam Patterson

EAT-Lancet’s Plant-Based Planet: 10 Things You Need to Know By Georgia Ede, MD

Canada invests in innovation to help grow bioeconomy Cultured lab meat may make climate change worse By Matt McGrath, BBC News

28 29 30 32 32 34

Government invests in industry-led animal welfare activities Maple Leaf Plants Recognized for Workplace Safety Achievements Customer Retention Strategies for the Meat and Poultry Department By Ronnie P. Cons

Government Invests Over $50 million In Agricultural Sector M&M Food Market Expanding Retail Operations

By Mario Toneguzzi, Retail Insider

Small businesses can’t pass on the carbon buck By Ryan Mallough

GUEST EDITORIAL

Mike McCann. Application Specialist. Packaging Expert.

September/October 2017 Volume 16 Number 5 January/February 2018Volume Volume 17Number Number January/February 2018 17 11 March/April 2019 Volume 18 Number 2 PUBLISHER PUBLISHER Ray Blumenfeld Ray Blumenfeld ray@meatbusiness.ca ray@meatbusiness.ca MANAGING EDITOR MANAGING EDITOR Scott Taylor Scott Taylor publishing@meatbusiness.ca publishing@meatbusiness.ca DIGITAL MEDIA EDITOR DIGITAL MEDIA EDITOR Cam Patterson Cam Patterson cam@meatbusiness.ca cam@meatbusiness.ca CONTRIBUTING WRITERS CONTRIBUTING WRITERS Lilian Schaer, J.P. Gervais, Alice Sinia, Chuck Scott Taylor, Chuck Jolley, Dan Kelly, Ronnie P. Scott Taylor, Chuck Jolley, Sean Moon, Marilyn Georgia Ede, MD Amy MattReid McGrath, Ronnie P. Cons, Jolley, Sylvain Charlebois, Martha Roberts, Ronnie Cons, Sara Place, Braun-Pollon Phil Franz-Warkentin Mario Ryan Mallough, P. Cons,Toneguzzi, Brian Perillat, Marilyn Braun-Pollon CREATIVE DIRECTOR CREATIVE DIRECTOR Christian Kent Christian Kent Canadian Meat Business is published six times a year byBusiness We Communications Canadian Meat is published West Inc. six times a year by We Communications West Inc.

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meatbusiness.ca

2019

It is with great pride that I welcome you to the March/April 2019 issue of Canadian Meat Business.

This is a very special edition as it marks our 100th consecutive issue since our launch inAg September/October By Lilian back Schaer, Innovation Ontario 2002. We have been publishing Canadian InMeat honour of the 150th birthday, Canada and Fairmont Business sixcountry’s times per year, along with our Annual Beef Buyer’s Guide, and Vast amounts of data are being collected onand Canada’s farmswe through the through all ofResorts this industry’s triumphs tribulations, have cultural not Hotels and joinedtrials, forces to celebrate how Canada’s advent agriculture technology and the Internet of Things (IOT) missedof anprecision issue to date. diversity hasofinfluenced the evolution of our cuisine. Many types tools, equipment and devices gather data on everything from Over the last 17 years we have all been witness to range of issues At a recent Beef an andanimal Toronto’s Fairmont York highlighted crop yields event, to howCanada many steps takes in a a wide day.Royal However, much which at times have propelled the industry forward with grace and goodwill the Asiandata influence in Canadian cuisine it’s featuring the Royal York’s that Executive of that is underutilized because collected by systems don’t Chef or and atcommunicate other and times have threatened to cause it irreparable harm. Robert Mill’s Chef Clinton Zhu from Shanghai. Chef Mills’ commitment to can’t with each other. sustainability sourcing local the stage to showcase and As we have and experienced theseset highs and lows together,Canadian it seemsgrown we have The need for better decision-making on farms through better data use raised produce. neverbeef lost and sight of how important and how valuable our contributions are resulted in Ontario Precision Agri-Food (OPAF), a partnership of agricultural to the ofa farm this great countryeast andand to west the health and welfare of home our The day economy began with tour, Agri-Food bringing together. organizations led by Ontario Technologies (OAFT)Professional that’s fellow citizens. economist Mairlyn Smith guidedplatform a grouptoofconnect top culinary mediadata. and developingand an author open agri-food innovation and share We must always pride inonour accomplishments and we must always influencers as theytake embarked a full day of epicurean exploration, delving into The goal, according to lead director Dr. Karen Hand of Precision Strategic remember impact weterroir. have collectively on Canadians as well as who the narrativethe of taste and Much like wine, the characteristics ofthose Canadian Solutions, is getting data, wherever it exists (both data repositories in consume our meat around the world. beef are shaped fromproducts a terroir effect. industry or government and data generated by countless sensors) so it can We should forget the beef, porkproduction and poultry industries in this At Sunnymead Farm, nearthat Caledon, Ontario. Alberta rancher Kelly Smith-Fraser be used to never help advance important food issues like food safety, country generate inofexcess of $28disease billion insurveillance. sales annually provides joined Will Sheard Sunnymead and shared the stories and of how theydirect raise traceability and plant and animal and indirect to hundreds of thousands. Canadians safely and Canadian beef.employment The farmer and rancher pair offered an insider’s perspective on the For example, information about 19 thekilograms prevalence and control of insect deliciously consume more beef, 17 kilograms of pests pork similarities and differences in than raising beef acrossof the country. like cutworms that damage soybean crops lies with many different people and 32 kilograms of poultry each year. It is estimated the average annual While feeding and housing cattle can be quite different between these two parts and organizations, including university and is government crop household expenditure on meat in Canada in excess ofresearchers, $1,200. ofadvisors, the country, the similarities significant. “We do the very best we can for our input suppliers andare farmers. Canada and is often ranked firstadvancing or secondour in methods numerouswith international surveys livestock are continually our animals’ and land’s There iscomes no single spot handling where alland of the information about a particular pest when it to food food safety performance. In many of best interests in mind,” said Smith-Fraser. can be accessed in a robust, science-based system and used in decisionthese categories, Canada has been, and continues to be, a world leader in Sheard summed it up. “People askplatform me why Iwill farm – andHand one of the main reasons making and innovation that’s where OPAF’s help,” says. technology, and sustainability. is that 97 per cent of farms are still family run. I feel blessed to work with my dad Pilot projects are underway with Ontario’s grain, dairy and poultry It is hard not learn to look a sense of quality wonder at how much hasproducers happened every day and theback craftwith of raising good beef like my grandparents and to identify their needs in areas like crop protection, sustainability and the food and yet, how quickly the time has passed. It seems the older we get, my great grandparents did.” safety and how OPAF can provideIt’s data-driven solutions to this benefit faster time seems to accelerate. not supposed to work way!farmers.

Grass and grain-fed beef went head-to-head in a terroir tasting experience, before “We sit down with farmers, associations, government and The meat industry seenadvisors, so muchpacked changeupover the years andwith thatbeef at times, guests indulged in ahas gourmet picnic in bento boxes and researchers to find out what data they have, issues where they existcovered and if we were it’s hard to keep up with all of transformative we have including seasonal, regionally grown foods.

able to connect what value or Change, benefit that wouldofoffer participants Animal Welfare, them, Blockchain, Climate Country Origin Labeling, –

Back the Fairmont Royal York, guests were treated tooraon Canada 150 exclusive either specific to the commodity they are producing larger food-related Diet at Trends, E.Coli and Listeriosis outbreaks, Food Irradiation, Food Safety, maple whiskey cocktail and Chef recipe demo of smoked brisket and braised issues such as foodMad safety or impact on trade,” she explains. International Trade, Cow, PEDv, Political Chaos and Sustainability. beef short rib. For the grand finale, guests were treated to an East meets West themed And OPAF’s are gaining recognition. Earlier this There are soefforts many great peopleglobal to thank for our longevity whoyear, haveInternet worked dinner where the Chef duo presented different preparations of beef, reflecting of Food and the Farm large project in Ithe Union exploring with us over life2020, of thisa publication but willEuropean do my best to pay tribute to unique cultural influences. Dishes like Yonge Street Sirloin with Gremolata and the potential of IOT technologies of European food and farming, recognized those who stand out. Mushroom, Oven Roasted Orange Beef Tri-tip with Shanghainese Sauce and OPAF as one of three projects collaborate with. past and current First and foremost, ourglobal sincere thankstoare extended Charred Sirloin Roll with Pickled Asparagus were all parttoofthe the event, showcasing executives from Reiser Canada, Products and and The Yes “This is work going be changing theUniPac face ofPackaging data enablement in Ltd. Canada the hard oftoCanada’s farmers and ranchers.

Group Inc. who have not only been with of usOntario since the launch ofTechnologies our premiere contributing globally,” says Tyler Whale Agri-Food

“I am thrilled to be part of such a unique series of events connecting chefs and issue but“We continue to this aday to be valuable and much appreciatednew, corporate (OAFT). are creating platform that is the base of something and paying tribute to high quality ingredients like Canadian beef,” said Chef Zhu. “Once partners. we I would be remiss expressing myavailable deepest nationwide gratitude toto the although are piloting this in in not Ontario, it will be we take the time to get to know where our food comes from and how it is crafted, late, great those who Keith want Young to use who it.” was an industry giant, a personal mentor and a we canfriend. truly appreciate its beauty.” dear

OPAF partners include OAFT, University of Guelph, University of Waterloo,

“In with our global partners, exploring how farDigital the Canadian Myworking heartfelt appreciation go towe’re Cam Patterson, our Editor, topantry Scott Niagara College, Vinelandalso Research and Innovation Centre, Livestock has come,” said JoyceEditor Parslow, Executive Director of Patrick Consumer Relations Taylor, our Executive and to Christian Kent and Cairns, our at Research Innovation Corporation, Ontario Fruit and Vegetable Growers Canada “To continue pushing culinary boundaries, we’re working with CreativeBeef. Team. Association, Grain Farmers of Ontario, Ontario Federation of Agriculture, international chefs and pairing them with leading local chefs to demonstrate how Farm Credit Canada, Ontario Association, Bioindustrial Finally, thanks to all of youearned for Agri-Business continuing to read this magazine Canadian ingredients have a reputation on and the support global stage. In building Innovation Canada, and Golden Horseshoe Farm and FoodYour Alliance. as well as the digital editions of Canadian Meat Business. feedback,their these relationships, we aim to inspire Canadians to continue expanding opinions andwas suggestions have always been to our publication. This project funded Growing Forward 2, backbone a federal-provincial-territorial pantries, embracing global by flavours in their dailythe cooking.”

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CanadianMeat MeatBusiness Businesssubscriptions subscriptionsare are Canadian availablefor for$28.00/year $28.00/yearor or$46.00/two $46.00/twoyears years available andincludes includesthe theannual annualBuyers BuyersGuide Guideissue. issue. and

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September/October2018 2017 CANADIAN MEAT BUSINESS 5 January/February 55 100TH ISSUE | March/April 2019

to think that the Democrats, who now control the U.S. House of Representatives, have told Lighthizer, Trump and NBC News that they won’t consider bringing the deal up for a vote until Trump lifts his tariffs on Canada’s and Mexico’s steel and aluminum. Meanwhile, some Republicans oppose some very important aspects of the CUSMA, including its weakening of the NAFTA provision that lets foreign companies sue governments for mistreatment (Chapter 11).

LET’S MAKE A DEAL By Scott Taylor

It might come as a shock to many Canadians, especially after all of U.S. President Donald Trump’s boasting about the issue, but the Canada-United States-Mexico Free Trade Agreement doesn’t actually exist. At least, not in reality. It’s still just a very good idea. Oh sure, it’s been negotiated. Trump calls it the “greatest trade deal ever negotiated,” and, of course, refers to it as “the USMCA.” Trouble is, the CUSMA, as we call it here in the Great White North, hasn’t been ratified by any of the countries involved and for all intents and purposes, exists in name only. That’s right, the current operating free trade agreement that exists among Canada, the United States and Mexico is still the North American Free Trade Agreement (1994). And it will remain in force until the Canadian Parliament, the congress of the United States and the government of Mexico say otherwise. In the meantime, we remain a trading nation. In fact, it’s one of the things that drives the Canadian economy. When you do business in a country with only 35 million people, you must open outside markets in order to maximize your revenue opportunities. And make no mistake, the Canadian meat industry is an important driver of Canada’s trade economy. According to the Ministry of Agriculture, in 2018, Canada exported $1.853 billion CDN in beef products to the United States and another $600 million to the rest of the world. As well, in 2018, Canada exported $1.165 billion CDN in pork to Japan, $1.153 billion CDN in pork to the United States, $455 million CDN in pork to China and $1.7 billion in pork products to the rest of the world.

Rep. Ron Kind (D), a member of the trade subcommittee of the Ways and Means Committee, told Axios that he gives Lighthizer credit for reaching out, but he added, “Like many of my colleagues, I won’t back the trade deal until Trump lifts those steel and aluminum tariffs. Retaliation for these tariffs is hurting Badger State (Wisconsin) farmers and manufacturers.” However, Trump won’t budge. He “likes” tariffs, even when it hurts his allies and his own citizens. “Time is of the essence,” Kind told Axios. “The later this issue drags into 2019, or if it slips to 2020, the presidential campaign is going to overwhelm things and make things so much more difficult to move forward.” Now, while Kind has his personal issues with the deal,

it will ultimately be up to U.S. House speaker Nancy Pelosi to bring a vote on CUSMA to the House floor. And while she indicated to Axios that she’s open to Trump’s trade deal, Republicans anticipate she’ll use her leverage over Trump to extract something substantial in perhaps another area outside of trade. Of course, the CUSMA is only one of more than 90 trade deals that Canada has in force around the world. The majority of those deals are single country-tocountry agreements. It might surprise some Canadians to know that we have free trade agreements with Honduras, Guinea, Korea, Jordan and Peru and Foreign Investment Promotion and Protection Agreements with more than 80 countries. However, there are five agreements, either in force or currently being negotiated, that involve more than one other country. In many cases, these agreements are worth billions of dollars to Canadian meat producers, grain producers, manufacturers and service providers. As well, there is another major agreement that is currently in exploratory discussions – the potential Canada-China Free Trade Agreement. In 2016, Canada imported $48.6 billion US in goods from China and sent $16.3 billion back to China. China is now our second largest trade partner, next to the United States. Continued on page 8

In total, in 2018 alone, Canada exported more than $6 billion CDN in beef and pork products to the world.

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The importance of strong trade agreements to the Canadian economy is quite obvious and that’s why the Canadian government is anxious to get the new CUSMA ratified and in force as quickly as possible. However, that might not be possible. There is little doubt the agreement will be ratified in Canada and Mexico. After all, taken in its full context, it’s a good deal for both countries. Trouble is, the U.S. Congress isn’t quite as enthusiastic as their country’s President. In fact, late last month, one of U.S. Trade Negotiator Robert Lighthizer’s deputies told Fox News that he was quite optimistic that the “USMCA” would get through congress with, “huge bipartisan support by the end of April.” Many people laughed. The comment was made by Republican attorney C.J. Mahoney, a member U.S. Trade Representative Robert Lighthizer’s staff. It’s very likely he’s either deluding himself, misleading the American people or speaking to an audience of one. And we all know who that one is.

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March/April 2019 | 100TH ISSUE

100TH ISSUE | March/April 2019

Exploratory discussions for a possible CanadaChina Free Trade Agreement. Status: 1) Exploratory discussions In force: No Agreement type: Free Trade Agreement Country grouping: China According to the government, “Work on these discussions started in the fall of 2016 and face-to-face meetings took place from Feb. 20-24, 2017, in Beijing and from April 24-28, 2017, in Ottawa. A third set of meetings took place in Beijing from July 31 to August 4, 2017. The discussions gave both sides an opportunity to exchange information about each other’s regulations and laws, and to explore the details a possible CanadaChina FTA.” “It is a priority for the Government of Canada to expand trade and investment with large, fast-growing markets, including China,” said Canada’s trade negotiator Chrystia Freeland. “China is the world’s second largest economy, and Canada’s second largest single-country trading partner.” Meanwhile, there are two other extremely important Canadian trade agreements that, along with the CUSMA, drive the largest portion of Canada’s international trade. Comprehensive and Progressive Agreement for Trans-Pacific Partnership Status: 4) Signed In force: No Agreement type: Free Trade Agreement Country grouping: Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam According to the Government of Canada, “The Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) is a free trade agreement between Canada and 10 other countries in the AsiaPacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and 13.5 per cent of global GDP, providing Canada with preferential access to key markets in Asia and Latin America.” On Dec. 30, 2018 the CPTPP entered into force among the first six countries to ratify the agreement – Canada, Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019, the CPTPP entered into force for Vietnam. The Canada-European Union Comprehensive Economic and Trade Agreement 8

In force: 2017-09-21 Agreement type: Free Trade Agreement Country grouping: European Union (EU): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom (for now). This is a progressive trade agreement that “upholds and promotes the values that Canada shares with the EU,” according to Trade Minister Jim Carr. It’s also a trade agreement with more than 500 million potential customers in the EU.

Country grouping: European Free Trade Association (EFTA): Iceland, Liechtenstein, Norway, Switzerland This free trade agreement between Canada and EFTA is a goods-only agreement with an emphasis on complete tariff elimination. Canada-Mercosur Free Trade Agreement Status: 2) Negotiations In force: No Agreement type: Free Trade Agreement Country grouping: Mercosur: Argentina, Brazil, Paraguay, Uruguay

The agreement was signed on Oct. 30, 2016 and entered into force on Sept. 21, 2017 and since that time Canada has exported $46.8 million worth of goods and services to the EU, a one per cent increase (and growing) from pre-CETA days.

Canada recently concluded exploratory discussions for a possible free trade agreement with what are known as the Mercosur countries: Argentina, Brazil, Paraguay and Uruguay. With a combined population of 260 million and a GDP of more than $3 trillion US, a new agreement would help increase Canada’s current $8.9 billion in bilateral trade.

As well, Canada is involved in three smaller agreements that either have the potential to produce major markets in the future or have been consistently sound agreements since the day they were signed and ratified.

There is very little doubt that Canada is a trading country. In 2017 alone, Canada exported $414.5 billion CDN in goods to the United States. That’s why the CUSMA is so important.

Canada-Pacific Alliance Free Trade Agreement Status: 2) Negotiations In force: No Agreement type: Free Trade Agreement Country grouping: Pacific Alliance: Chile, Colombia, Mexico, Peru

The market that was first created under the original NAFTA in 1994 now accounts for nearly 486 million

consumers and a combined GDP of more than $22 trillion US. And, of course, the United States and Mexico are, respectively, Canada’s first- and thirdlargest merchandise trading partners in the world. Canada is, respectively, the second- and fifth-largest merchandise trading partner of the United States and Mexico, and the largest export market for the United States. In fact, $2.4 billion is goods and services cross the U.S.-Canada border daily. The most important aspect of the CUSMA negotiations, at least for Canadians, was that Canada’s trade facilitators succeeded in preserving key elements of the original NAFTA (Chapter 19), including the cultural exemption and the use of binational panels to resolve disputes on duties. As well, Canada was able to eliminate Chapter 11, a section of the original NAFTA which allowed American companies to sue governments if a newly-elected government changed a law or delayed a purchase that directly or indirectly affected a private company’s bottom line. Currently, Canada has more than 90 Foreign Investment Promotion and Protection Agreements and Free Trade either in force or in negotiation. However, the most important agreement is CUSMA. Trouble is, only heaven and Nancy Pelosi know when that agreement will (ever?) get through Congress.

According to the Alliance, “The Pacific Alliance is a regional integration initiative created in 2011 by Chile, Colombia, Mexico and Peru that seeks the free movement of goods, services, capital and people. The purpose of the Alliance is to promote greater competitiveness and economic growth for member countries, as well as to expand economic relations with the Asia-Pacific region.” On June 29, 2017, at its Council of Ministers meeting attended by the Honourable François-Philippe Champagne, Minister of International Trade, the Pacific Alliance invited certain observer states (Canada, Australia, New Zealand, and Singapore), to become Associate Members. While Canada already has comprehensive and somewhat ambitious free trade agreements with all four Alliance members, Associate Membership would involve a new FTA with the Alliance as a bloc. Canada-European Free Trade Association (EFTA) Free Trade Agreement Status: 5) In force In force: 2009-07-01 Agreement type: Free Trade Agreement

March/April 2019 | 100TH ISSUE

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100TH ISSUE | March/April 2019

Editor’s Note: This interview was conducted with Minister MacAulay prior to the recent cabinet shuffle.

TALKING AGRICULTURE IN 2019 WITH LAWRENCE MACAULAY By Cam Patterson

Few would argue that Honourable Minister Lawrence MacAulay has made his mark in Ottawa. He has served in the House of Commons since 1988 and in that time has held no less than five cabinet appointments, two of which were Solicitor General of Canada and Minister of Labour before he became Minister of Agriculture and Agri-food. The latter could be the appointment closer to his heart since he came from a farming background in P.E.I. The 2019 election will mark his 10th term if elected, and since 2019 could prove a pivotal year for agriculture with three major trade deals on the table for ratification, so it seemed appropriate to have a Q&A with the minister as the new year gets underway. CMB: What would you say is the paramount issue for this campaign with respect to Agriculture and Trade? MacAulay: Let me just say that when I’m on trade missions around the world, I make sure to sit down with our trading partners to address barriers to trade. That is why it is paramount that we ensure that global trade is based on rules and sound science. Our producers and processors can compete with the best – they just need a level playing field to do so. We work hard to prevent, monitor and mitigate non-tariff barriers to trade in order to ensure that level playing field so our farmers can take full advantage of new trade agreements that we are signing with key markets around the world. Over the past 18 months, we have signed an agreement with the European Union and the Trans-Pacific counties. This is significant because these two agreements are giving our farmers and food processors a competitive edge in some of the largest and fastest-growing markets for food in the world. The Canadian Meat Council estimates that the CPTPP has the potential to increase Canadian beef and pork sales by at least $500 million, while supporting an additional 5,800 agriculture jobs here in Canada. Once all of our deals are in place, Canadian producers and processors will have a competitive advantage in two-thirds of the global marketplace. As well in November we signed the new NAFTA, securing our $4.4-billion in live animal and meat trade with the U.S. and we’re not stopping there. We have set

an ambitious goal of $75 billion in Canadian agri-food exports by 2025; a $10-billion increase over the next six years. We’ll be counting on our world-class meat industry to help us reach that target, and we’ll continue to work with our industry stakeholders to keep our trade firmly based in rules and science. CMB: As a farmer yourself, what do you see being the biggest challenges for farmers in 2019? And what is your goal to help industry meet those challenges? MacAulay: As someone who used to be in the seed potato business, I know first hand that Canadian farmers depend on trade. On average, half of their production by value is exported. For example Canadian pork producers depend on export markets for close to 70 per cent of their sales. That said our agriculture and agri-food sector has always been an important engine of Canada’s economy, but we must continue to innovate and stay competitive in growing global markets. I am also committed to supporting our Agriculture industry while pursuing a strong trade agenda to increase opportunities for farmers and food processors. Canada is making good progress towards our target of $75 billion in agri-food exports by 2025. Trade missions to key markets like the U.S., Europe, Vietnam, India, China, Japan, South Korea, Mexico, Argentina and Chile are key to that success. Our 2018 Fall Economic Statement also includes significant funding to implement an Export Diversification Strategy to increase Canada’s overseas agricultural exports by 50 per cent by 2025. Together, these investments and initiatives will continue to help our agricultural sector grow, innovate and prosper. CMB: What do you see being the primary issues and concerns for the meat and poultry industries specifically? MacAulay: Well meat supplies in North America are Continued on page 11

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100TH ISSUE | March/April 11 July/August 2019 2017 CANADIAN MEAT BUSINESS 19

expected to rise further in 2019. At this moment, the China and Mexico tariffs on U.S. pork remain in place. There will be much attention on African Swine Fever (ASF), where the herd liquation in China is putting significant volumes of pork into the Chinese market, but shortfalls are expected. These are all factors that will impact the Canadian pork industry and potentially could have impacts on the demand for other meat products.

NAL FOCUSES ON INDUSTRY WITH NEW With the changes to the access levels for imports under the CPTPP and the new NAFTA, the primary RVICES IN CANADA issues for the poultry industry will be ensuring import

predictability, adjusting to the new quantities of ases services Canada’s growing and fast-changing importedfor products entering the domestic market, and, for processors, continuing to improve their competitiveness.

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Education and (IACET) site. Topics include HACCP, Agriculture andTraining Agri-Food Canada (AAFC) is working foodthe safety and quality, GFSI with industry through thebenchmarked poultry and standards, egg working regulations FSMA), food science, food packaging, group, which(including was announced in October 2018. The food microbiology and ISO standards. Training modalitiesto working group is collaborating to develop strategies include on-site, customized and open enrolment. fully and eLearning, fairly support farmers and processors to help them adjust to new NAFTA, is also about discussing Additionally, thethe website includes and information support to reflect theregistrations impact of the management system for CPTPP. the food, automotive, environmental, information security, medical devices,

CMB: Whatand have you seen as feedback aerospace chemical industries, as well from as forproducers Ontario and associations regarding CETA, USMCA, or CPTPP, drinking water programs. and from your standpoint what are the pros and cons Visit the new Canadian website at www.nsfcanada.ca to review the food for Canadian livestock producers? safety services capabilities video, find a list of Canadian food experts, learn about upcoming events and global news releases, submit a question YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 2014-05-16 1:20:17 PMor read MacAulay: That’s a good question. 1To start with CETA, an FAQ.

the new NAFTA, and CPTPP are comprehensive trade agreements that achieved numerous beneficial outcomes for Canadian livestock producers. As you know CETA entered into provisional application on September 21, 2017, allowing Canadian exporters to begin accessing these opportunities. With that Canada obtained improved market access opportunities in the European Union across a broad range of products, particularly for beef and pork. For instance Canadian beef producers benefit from the EU establishing annual duty-free quotas for fresh/chilled (35,000 MT) and frozen (15,000 MT) beef and veal being phased in over 5 years. As well Canadian bison producers benefit from a dutyfree quota (3000 MT) that was made available upon provisional application of CETA. Subsequently Beef and bison producers also have duty-free access under the EU’s existing “Hilton” high-quality beef quota (11,500 MT, shared with the U.S.), compared to the pre-CETA 20% in-quota duty. As for the new NAFTA, Canada will continue to maintain duty free access in the North American market for meat and meat products, which should bring back important stability and predictability for Canadian livestock producers. In addition, the agreement recognizes that the industry has changed significantly in the past 25 years, with the establishment of a modernized Sanitary and Phytosanitary Measures (SPS) Chapter, a Technical Barriers to Trade (TBT) Chapter, together with the Good Regulatory Practices Chapter. The Agreement brings in new methods for parties to work together, including a new committee on agricultural trade and recognizing existing bilateral Consultative Committees on Agriculture as venues for further collaboration. With the CPTPP, Canada was among the first six countries to bring the deal into force. This secured a first-mover advantage for our meat and meat product exporters and has put them on a level playing field with competitors. The CPTPP will also help diversify Canada’s trade profile by creating new commercial opportunities with up to seven new FTA partners, including Japan and Vietnam. For example, in Japan, tariffs on Canadian fresh, chilled and frozen beef were reduced from 38.5% to 27.5% on December 30, 2018 with a further reduction to 26.6% on April 1, 2019. Japan’s tariffs will eventually be reduced to 9% within 15 years. In Vietnam, tariffs of up to 27% on Canadian fresh, chilled and frozen pork will be eliminated by January 2027. CMB: China is a hot topic right now. However, from your personal experience coupled with the success of your trade missions, and the fact the demand for beef and pork has never been higher in Asia, how do you see Agriculture relations with China playing out this year?

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MacAulay: As the Minister of Agriculture and AgriFood, I have travelled to China five times since 2016 to meet with my Chinese counterparts to advance key trade issues, and promote Canada’s safe and superior quality food products, including meat. We continue to have a strong and positive agricultural trading relationship that maintains a sustained and strategic engagement to advance our agricultural interests in the Chinese market.

exhibitors and over 110,000 visitors attended last year. The exhibition is an excellent platform to showcase innovative food products and seize new opportunities. We encourage Canadian food manufacturers and meat processors to attend SIAL China where they set up exhibits under the Canadian pavilions located in the International Food Hall as well as the Meat hall. We also have two Agriculture and Agri-Food Canada continued on page 14

As a result China remains Canada’s second largest export market for agriculture, agri-food and seafood products. Opening, maintaining and expanding market access to fast growing economies like China is a priority for us and important for the success of Canadian agricultural trade. And let’s not overlook the fact that China’s middle class is growing, and subsequently the demand for animal protein will continue to grow and provide strong opportunities for the Canadian meat sector. So while this is a sensitive time, the Canada-China relationship is strong and resilient. We’re confident that this strength will allow for the long term continuation of positive relationships in the business, people-to-people, institutional and cultural realms. CMB: What missions and industry events would you like to highlight this year and what would be the benefit for Canadian Agriculture?

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MacAulay: Well, since we’re talking about China, I’d like to highlight three trade show events taking place there this year that continue to have excellent return on investment for us: SIAL China is Asia’s largest food & beverage exhibition, taking place in Shanghai from May 17-19. Nearly 3,400

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(AAFC) flagship events that will be taking place in China this year. The China Fisheries and Seafood Expo (CFSE) from October 30 to November 1, and Food and Hotel China (FHC) from November 12 to14. Last year these two tradeshows were attended by over 120,000 people and expected to have generated over $285 million in new sales for Canada’s agriculture, food and seafood sectors. CFSE is the world’s second largest fish and seafood show, featuring 1,400 exhibitors from over 46 countries, while FHC is the largest show for international food and beverage, with 3,000 international food and beverage exhibitors from more than 48 countries promoting products to 118,000 trade buyers from all over China. CMB: The African Swine Flu pandemic in China is a growing concern. What would you like to see as a contingency in the event it reaches Canada? MacAulay: It is a concern. As a matter of fact this past fall, I took it upon myself to call Secretary Sonny Perdue to confirm my interest in collaboration on efforts to keep the disease out of the Americas. If African Swine Fever (ASF) is discovered in Canada, it will have significant economic impacts on the entire

pork value chain, and so we are working on a full range of prevention and preparedness activities to mitigate the pathways of entry for ASF. Since the fall of 2018, the Government of Canada has been working closely with the pork industry, including the Canadian Pork Council and major industry players, as well as with processors, provinces, international partners, and government agencies to heighten awareness of the risks and prevention of ASF. CMB: The New Canadian Food Guide was not well received by the meat industry for its obvious slant from animal based to plant based diet. What is your sense of how the industry is responding? MacAulay: Health Canada is the lead department on Canada’s Food Guide, and AAFC supports its objective, which is to help make it easier for Canadians to make healthier choices. We here in Canada are very fortunate to have such a strong agriculture and agri-food infrastructure that provides a variety of safe, healthy foods to Canadians and the world. We believe that consumers can benefit from clear dietary guidelines on a variety of nutritious foods as part of a healthy diet, such as lower-fat plain milk and

grow sustainably, including support fordata innovation and me differently. In fact, Statistics Canada shows that research. Under the Partnership, a suite of Business employers are about four times more likely to be earning programs will $250,000. continue to help lessManagement than $40,000 than more than small business owners (and their income) are different from Risk We are, however, sensitive to the concerns of the food producers manage significant risks that threaten the employees. To fightof these CFIB is a proud memberto industry and we continue to communicate and engage viability theirlatest farmproposals, and are beyond their capacity of the Coalition for Small Business Tax Fairness, a unified Risk. Business owners on huge risks in order to with1.our colleagues in othertake government departments, manage. voice of 50 organizations representing hundreds of a living, and when they the entire family is as wellearn as with a broad range of do, industry stakeholders. yogurt, cheeses Federation that are lower in sodiumBusiness and fat, (CFIB), as the Canadian of Independent wellI as lean meat. figured I needed to share with our government six ways

involved. Many business owners empty their savings, re-

thousands of businesses from all sectors of the economy.

The Government also launched the Canadian The Coalition recently sent Finance Minister Bill Morneau Agricultural Strategic Priorities Program, an investment a letter asking the government to take the proposals off of $50.3 million over five years, to help ensure that the table and instead meet with the business community the sector can respond to new and emerging issues, to address the shortcomings in tax policy affecting private but to actively contribute to the business’s success. This improve environmental sustainability, develop and build We want Canada to be a world leader in the production corporations. is particularly true on Canadian farms, where each family capacity, and pilot potential solutions. and export of food – and we have an ambitious agenda member plays a vital role, often from a young age. If the There’s still time for you to have your say. Consultations on to support the sustainable growth of our farmers and business fails, and many do, the whole family is often set A the further $25 remain millionopen is being through proposal until invested October 2nd, 2017.the Contact food processors, including our target to grow food back for years. Agricultural Clean helpisfarmers your local MP and Technology let them knowProgram what theto reality for exports to $75 billion by 2025. We want to do so adopt cleansmall technologies such as precision agriculture, sustainably with the best health, social,owner environmental, Canadian business owners. 2. Getting paid last. A small business gets paid and to develop bio-product alternatives to fossil fueland economic outcomes all Canadians. AFTER everyone else,for including employees, suppliers, Here’sproducts. hoping theAgriculture federal government recognizes based is also one of threethe priority and of course, governments. I’ve heard thousands of important differences between the income business areas under the $1.4-billion Low Carbonof Economy business owners taking home next to nothing CMB: stories Lastly,ofthe Ag industry’s impact on the owners andFund. employees and abandons these proposals that Leadership in tough times in order to ensure they could pay have and environment remains a controversial topic. What will harm our entrepreneurs and our economy. hangasonto valued employees and theirgoing business. you seen ourtheir strengths and weaknesses The $5.2 million Agricultural Youth Green Jobs Initiative This column was first published in the Huffington into3.2019? Working hours. Any agri-business owner will tell you supports youth internships to do work that benefits the Post on August 25, 2017. that the nine-to-five doesn’t apply to the farm. More than environment on and off the farm. Dan Kelly is President of the Canadian Federation of MacAulay: Canada’s hardworking farmers have 40 per cent of Canada’s small business owners work 50 Independent Business are (CFIB). In this capacity, And twenty new research projects supported byDan been, and continue to be, great stewards of the land. hours or more per week – compared to only six per cent the $27-million federal is the Agricultural lead spokesman and advocate for the views Greenhouse Gases Canadian agriculture has a solid track record of using of CFIB’s 109,000 small-and medium-sized member of employees. Program (AGGP), a partnership with universities and sound management practices, innovation, and new businesses across Canada, including 7,200 agriconservation groups across Canada, supporting 4. Benefits.toMany employees—particularly those inIn technologies reduce greenhouse gases (GHG). business members. Follow Dan on Twitter @CFIB research into GHG and mitigation fact, Canadian beef producers government—enjoy health, have dentalreduced and othertheir benefits learn more practices about CFIB atand www.cfib.ca. technologies that can be adopted on the farm. environmental and carbon footprint bythe reducing their courtesy of their employers. Again, business owner GHG emissions 15success per cent, while increasing depends onby the of the business to fund any production bythey 30 per cent. The Canadian pork industry benefits or their own family may need. has also made great strides, as it has today the lowest 5. Paperwork and red tape. Think you have struggles environmental footprint in the world. The province of with the Canada or footprint other Quebec leads the wayRevenue -- with Agency a carbon that is government departments? Consider the massive one-third below the world average. Our Government is also developing A Foodfriends, Policyfamily for mortgage their homes and borrow from Canada, to address key opportunities anddesigned banks to get their business going. Once it and does, challenges in our food system. they often rely on family members not only for support,

number of rules, regulations and agencies a small

business to important deal with. Want a bicycle Carbon pricinghas is an part to of start Canada’s plan to repair in Winnipeg? You will need toeconomy, register transition toshop a low-carbon, climate-resilient with up to 44 different agencies before youreflects start. the and the Government’s carbon pricing policy realities of Canada’s A Halifax dentistagricultural needs up to industry. 45 permits to earn a living.

The6.federal government also making significant Retirement. This is aisbig one. While government investments enable the Canadian agriculture sector workerstohave gold-plated pensions often starting at to better priorities such Canadians as climatehave change. ageaddress 55, and many employed employer-matched RRSPs, the small business owner

This includes committing $70 to support is counting on the value of million the business—including scientific research and innovation in agriculture tohis or any investments owned by the corporation—for address emerging priorities related to climate change, her retirement. Succession planning is already major such as soil health, and water quality and conservation.

issue for small business owners, especially when it comes to the agri-business community. When it is The funds a newtoinitiative Living easieralso andsupport more lucrative sell to a called third party than it Laboratories that willbusiness help farmers adopt innovative is to pass your down to the next generation, tools and techniques more quickly, resulting in of more it threatens the livelihood and very existence sustainable, productive, and resilient farming in Canada’s family farms, something is seriously Canada. wrong. Sadly, there are lots of Canadians (and, it appears, many

Thispoliticians) past year,who the believe Government launched $3-billion that hanging out athe shingle to say Canadian Agricultural Partnership with provincial you’re in business is a licence to print money. I represent and109,000 territorial partners toacross help the agricultural sector entrepreneurs every sector, who tell 14

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Red meat is often wrongly portrayed as being unhealthy. Even chicken has been getting attacked by some in the media as unhealthy or not environmentally friendly. Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families. They are also aware that a lot of false information is out there and as such, are open to scientific facts that can correct their misconceptions.

liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach. Iron found in vegetables is harder to absorb than the iron found in meat as it is attached to fibre which inhibits its absorption. 2. Eat Meat for a Healthier Brain! Being deficient in the micronutrients found in meat have been linked with low IQ, autism, depression and dementia says Dr. Charlotte Neumann, a paediatrician at the University of California, as quoted in the article ‘Brain food- clever eating’.

EAT-LANCET’S PLANT-BASED PLANET: 10 THINGS YOU NEED TO KNOW This provides an opportunity for retail meat departments to implement an instore ‘Healthy Meat Facts’ nutritional campaign to set the record straight and convince their customers that meat and poultry are actually good for one’s health and that they should increase rather than decrease their purchases of it. The campaign outlined below can have By Georgia Ede, MD a direct impact on sales:

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

3. Boost Your Immunity with Meat! Due to its antioxidant powers, zinc is involved in creating antibodies to fight free radicals that increase our risk for published on January 16 that deserves everyone’s chronic diseases.

An important new study about global nutrition was Start by displaying instore posters promoting the nutritional full attention: “Food in be theinnovative, Anthropocene: theand EAT-Lancet Commission on healthy diets from value of meat. They should eye catching 4. Power Your Muscle Growth with Meat! 1 be designed tofood specifically contradict any meat myths. The [Don’t let the title intimidate you: inYou need know what’s inside.] sustainable systems.” The protein meat helpsto build and repair body tissues.This comments all be literatureand based quoting research paper wasshould commissioned published by The Lancet—one of the world’s oldest and most respected Muscles are made of protein. That is why athletes who are papers or MDs for maximum effect. Various posters should medical journals—and penned by an international group ofmuscle 37 scientists led bytheir Dr. meat Walter Willett of building strength increase consumption. be made - each with a brief but powerful message covering The protein and zinc found in meat are important for muscle Harvard one theme.University. Posters can convey theyears following healthy meat fact The product of three of deliberation, this 47-page messages: envisions a “Great Food Transformation” document which anon environmentally sustainable 1. Let’sseeks IRONto outachieve the Truth Meat! and healthy for the world’s people to “Youoptimally would need to eat adiet massive amount of spinach by 2050. recommendation to minimize equal (theIts ironcore content) in a steak,” saysisChristopher Golden, an ecologist and University in and consumption of epidemiologist animal foods at asHarvard much as possible, Cambridge, Massachusetts. (As quoted by nature.com in the replace them with whole grains, legumes, and nuts. article foodeating’.) We all ‘Brain want to be clever healthy, and we need a sustainable way feed ourselves without destroying For atowoman to receive her recommended daily intake of 18 our environment. The well-being of our of planet and its mg of iron, she would need just 300 grams cooked bovine people are clearly in jeopardy. Therefore clear, science-

growth and repair.

based, responsible guidance about how we should

5. Meat is the Complete Protein! move forward together most welcome. Meat contains all of the nineis essential amino acids that your Unfortunately, we are going have look elsewhere body cannot make by itself. Say to ‘hello’ to to histidine, leucine, for solutions, because this report fails to provide us with isoleucine, lycine, methionine, phenylalanine, tryptophan, the clarity, threonine, andtransparency valine. That isand why responsible meat is calledrepresentation a complete of the facts we need to place our trust in its authors. protein.

Instead, the Commission’s arguments are vague,

6. Eat Meat for a Healthy Heart! inconsistent, unscientific, and downplay the serious risks Meat contains lots of the B vitamins needed for the to life and health posed by vegan diets. production of hormones, red blood cells and for the proper functioning of your nervous system.

1. Nutrition epidemiology = mythology Say ‘hello’ niacin, folic acid, thiamine, biotin, panthothenic The vasttomajority of human nutrition research— acid, vitamin B12 and vitamin B6. They are all found in meat. including the lion share of the research cited in the EAT-Lancet report—is conducted thedoes tragically The line that ‘the best defense is a goodusing offense’ not only applymethodology to sports. It also to countering negative flawed ofapplies nutrition epidemiology. Nutrition meat health myths. Implementing instore ‘Healthy Meat epidemiology studies are notan scientific experiments; Facts’ to set the record straight on meat they nutritional are wildlycampaign inaccurate, questionnaire-based and poultry.(hypotheses) It is a good way to gothe on possible the offensive by using guesses about connections education customers and increasing your sales..has betweenyour foods and diseases. This approach 2 Ronnie is CEO of C&C Packing Inc., a leading Canadian distributor beenP. Cons widely criticized as scientifically invalid , yet of meat and poultry. He can be reached at RCons@CCpacking.com. continues to be used by influential researchers at prestigious institutions, most notably Dr. Walter Willett. An epidemiologist himself, he wrote an authoritative textbook on the subject and has conducted countless

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Prices might rise too, if China’s herdare is good because further impacted Translation: Complete proteins they by ASF in 2019. of early amino January, estimates of fewer contain everyAsessential acid. All animal proteins are naturally complete, whereas most plant proteins continued on page 8 are incomplete. Watch how the authors wriggle their way out of this inconvenient truth in the next sentence: continued on page 18

Kanada/en

By Ronnie P. Cons

Live Canadian cattle prices throughout the year averaged Even if you think epidemiological methods are sound, at C$143 cwt. fedgenerate steers inhypotheses 2018 (Jan-Sept.), bestper they canfor only that thenwhich need resulted in a 2.8% fall in receipts from 2017 to be tested in clinical trials. Instead, theserevenues. hypotheses Prices expected to average C$145 perpublic cwt. in areare often prematurely trumpeted to the as 2019, implicit despite U.S. production expanding by more than 3.0% fact in the form of media headlines, dietary guidelines, in response to continued growing demand. Canadian and well-placed commission reports like this one. production isn’t expected to move from 2018 in the Tragically, more than 80% of these guesses levels are later coming year. Despite a Canadian packer utilization rate proved wrong in clinical trials4. With a failure rate this that’s the nutrition highest epidemiologists since 2004, there aren’t enoughoff cattle high, would be better flipping available production. Cattle-on-feed in Canada a cointotoincrease decide which foods cause human disease. The relies heavily on this methodology, which as ofCommission November 2018 were estimated to be 10% higher to explainaverage. why its recommendations often fly in the thanhelps the five-year face of biological reality. Canadian cattle herd expansion has been challenged 2. Redfactors: meat causes disease, diabetes, by several the dryheart conditions on the Prairiescancer . . and spontaneous that .pushed up feed costs combustion in 2018 meant fewer retained Theand section of the sales reporttodedicated tosmaller protein weights. heifers increased feedlots at blames red meat for heart disease, stroke, Feedlots, with fewer Canadian cattle available, type imported diabetes, early death. It more2 live cattle obesity, from thecancer, U.S. in and 2018, a trend that’s contains 16 references, and every single one is an expected to continue in 2019. epidemiological study. The World Health Organization report tying red meat to colon cancer was also How will this affect your bottom line? mentioned, and that report is almost entirely based Withon theepidemiology meat sectorsasexpected lack of is production truth that theregrowth is no well5. The and human tight profit margins, 2019 will be a good year seek clinical trial evidence tying red meat toto any efficiency gains by working to reduce operating costs health problem. I certainly haven’t found any—and if relative towere, revenues. there I think this Commission surely would have mentioned it. Proper evaluation of financial risks will be especially important on loans renewal 2019, as periods of Yet even in thisdue “redformeat is aninapocalypse on a plate” risingsection, interestmeat’s rates may require greater shares of revenues virtues peek through: sub-Saharan children often to cover “[In interest payments.Africa] growing Watch your debt repayment not the obtain adequate quantities of nutrients capacity,do given slowdown in income – especially for from plant source foods alone… promotion operations with recent, significant investments. of animal source foods for children, including products, can improve dietary quality, TRENDSlivestock TO WATCH IN 2019 micronutrient intake, nutrient status, and overall China, China and more China health.” [page 10] China always plays a large role in global red meat markets, but the economic giant’s influence will be distinctive in 3. Protein is essential . . . but cancerous 2019. The commissioners write: “Protein quality (defined by effect on growth rate) If U.S.-China trade tensions remain unresolved in early reflects the amino acid composition of the food 2019, the U.S. may choose to plant more corn and fewer source, and animal sources of protein are of higher soybeans, ultimately lowering costsHigh-quality for livestock quality than most plantfeed sources. operations. On the other hand, lifting tariffs and/or of scaling protein is particularly important for growth back trade retaliation measures would mean stronger infants and young children, and possibly in older demandpeople from China and higher redinmeat prices. losing– muscle mass later and life.”soy [page 8]

4 – 9. 5. 2019 Frankfurt am Main

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sectors in 2018. On both the domestic and global front, consumption grew. Higher incomes, different dietary such studies, including a recent, preferences and more variety in meatwidely-publicized selections have paper tying low-carbohydrate early death. each spurred demand for proteins.diets U.S.to beef exports broke records in 2018 and are expected to maintain 3 In my reaction to that study , I explain plainsuccess, growth in 2019. Canadian exports had the in same English why epidemiological techniques are soour own and as of early December, were on track to break untrustworthy and include a sample from an actual records. food questionnaire for your amusement.

Meet the Best IFFA. One world-leading trade fair, one focus: meat. From hand-crafted to high-tech, this innovation platform presents the industry trends of the next 3 years. It is the meeting place for experts from industry, retail and the butchers’ trade – for the first time also in the new Hall 12! www.iffa.com info@canada.messefrankfurt.com

January/February 2019

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“However, a mix of amino acids that maximally stimulate cell replication and growth might not be optimal throughout most of adult life because rapid cell replication can increase cancer risk.” [page 8]

very animal foods they recommend avoiding: “Although inclusion of some animal source foods in maternal diets is widely considered important for optimal fetal growth and increased iron requirement, especially during the third trimester of pregnancy, evidence suggests that balanced vegetarian diets can support healthy fetal development, with the caveat that strict vegan diets require supplements of vitamin B12. [page 13]

Translation: Complete proteins are bad because they cause cancer. The sole reference for this absurd suggestion that complete proteins cause cancer6 is a paper about mutations causing cancer in which the terms “protein,” “amino acid,” and “meat” each occur a grand total of zero times, suggesting that the Commission’s suggestion is pure… suggestion. Furthermore, if obtaining all of the essential amino acids we need causes cancer, shouldn’t we also worry about complete proteins from plant sources like tofu or beans with rice? 4. Omega-3s are essential . . . good luck with that “Fish has a high content of omega-3 fatty acids, which have many essential roles… Plant sources of alpha-linolenic acid [ALA] can provide an alternative to omega-3 fatty acids, but the quantity required is not clear.” [page 11] If the Commission doesn’t know how much plant ALA a person needs to consume to meet requirements, then how does it know that plants provide a viable alternative to omega-3s from animal sources? The elephant in the room here is that all omega-3s are not created equal. Only animal foods (and algae, which is neither a plant nor an animal) contain the forms of omega-3s our bodies use: EPA and DHA. Plants only contain ALA, which is extremely difficult for our cells to convert into EPA and DHA. According to a 2018 review7, we transform anywhere between 0% and 9% of the ALA we consume into the DHA our cells require. Instead of being vague, why not responsibly warn people that trying to obtain omega-3 fatty acids from plants alone may place their health at risk? “About 28 g/day (1 ounce) of fish can provide essential omega-3 fatty acids… therefore we have used this intake for the reference diet. We also suggest a range of 0-100 g/day because high intakes are associated with excellent health.” [page 11] Wait… if it takes 28 grams to meet your daily requirement for omega-3s AND high intakes are associated with excellent health, why allow the range to begin at ZERO grams per day? If the Commission doesn’t feel comfortable recommending fish, it should at least recommend algae-sourced omega-3 supplements. 5. Vitamins and minerals are essential . . . so take supplements The drumbeat heard throughout the report is that animal foods are dangerous and that a vegan diet is the holy grail of health, yet EAT-Lancet commissioners repeatedly find themselves in the awkward position of having to acknowledge the nutritional superiority of the 18

“Adolescent girls are at risk of iron deficiency because of rapid growth combined with menstrual losses. Menstrual losses have sometimes been a rationale for increased consumption of red meat, but multivitamin or multimineral preparation provide an alternative that is less expensive and without the adverse consequences of high red-meat intake.” [page 13] If the commissioners are concerned that red meat is dangerous (which is only true on Planet Epidemiology), why not recommend other naturally iron-rich animal foods such as duck, oysters, or chicken liver for these growing young women, as these foods would also provide the complete proteins needed for growth? What about the 10-22% of non-teen reproductive-age women in the U.S. who suffer from iron deficiency?8 And why a “multimineral preparation” rather than a simple iron supplement? Are they implying that other minerals may be lacking in their plant-based diet? In changing to the EAT-Lancet diet, the Commission claims: “The adequacy of most micronutrients increases, including several essential ones, such as iron, zinc, folate, and vitamin A, as well as calcium intake in low-income countries. The only exception is vitamin B12 that is low in animal-based diets [I believe this was an error on their part, since B12 is only found in animal foods.] Supplementation or fortification with vitamin B12 (and possibly with riboflavin [vitamin B2]) might be necessary in some circumstances.” [page 14] Unfortunately, the nutritional inadequacy of plant-based diets goes beyond B vitamins. Plant foods lack several key nutrients, and some of the nutrients they do contain come in less bioavailable forms. Furthermore, many plant foods contain “anti-nutrients” that interfere with nutrient absorption. This means that just because a plant food contains a nutrient doesn’t mean we can access it. An important example is that grains, beans, nuts, and seeds—the staple foods of plant-based diets— contain phytate, a mineral magnet which substantially interferes with absorption of essential minerals like zinc, calcium, iron, and magnesium. And thanks to oxalates—mineral-binding compounds found in a wide variety of plant foods—virtually none of the iron in spinach makes it into Popeye’s muscles.

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Nowhere do they say that poultry is associated with any negative health outcomes, so why limit it to a maximum of 58 grams (2 ounces) per day? The commissioners attempt to defend themselves from criticism on this issue by stating: “We have a high level of scientific certainty about the overall direction and magnitude of associations described in this Commission, although considerable uncertainty exists around detailed quantifications.” [page 7] If they are this uncertain about the details, how can they in good conscience prescribe such specific quantities of food? Why not say they don’t know? Most people will not read this report—they will interpret the values in this table as medical advice. 7. Epidemiology is gospel . . . unless we don’t like the results Any researcher will tell you that clinical trials—actual scientific experiments—are considered a much higher level of evidence than epidemiological studies, yet Willett’s group not only relies heavily on epidemiological studies, it favors them over clinical trials when it suits their agenda: “in large prospective [epidemiological] studies, high consumption of eggs, up to one a day, has not been associated with increased risk of heart disease, except in people with diabetes. “However, in low-income countries, replacing calories from a staple starchy food with an egg can substantially improve the nutritional quality of a child’s diet and reduce stunting. [randomized clinical trial]

Only animal foods contain every nutrient we need in its proper, most accessible form. You can learn more about nutrient availability and how it affects brain health in my article “Your Brain on Plants: Micronutrients and Mental Health.”9 6. Making up numbers is fun and easy How did the commissioners arrive at the recommended quantities of foods we should eat per day . . . seven grams of this, 31 grams of that? Numbers like these imply that something’s been precisely measured, but in many cases, it’s plain that they simply pulled a number out of thin air: “Since consumption of poultry has been associated with better health outcomes than has red meat, we have concluded that the optimum consumption of poultry is 0 g/day to about 58 g/day and have used a midpoint of 29 g/day for the reference.” [page 10]

“We have used an intake of eggs at about 13 g/day, or about 1.5 eggs per week, for the reference diet, but higher intake might be beneficial for low-income populations with poor dietary quality.” [page 11] Why recommend only 1.5 eggs per week when epidemiological studies found that 1 egg per day was perfectly fine? And why skew your recommendations against low-income people, who make up a significant portion of the global population? There is a remarkable paragraph on page 9 (too long to quote here) arguing that red meat was found to increase the risk of death in epidemiological studies conducted in Europe and the USA, but not in Asia, where red meat (mainly pork) was associated with a decreased risk of death. Rather than grappling with this seeming contradiction, the Commission simply dismisses the Asian findings as invalid, wondering if perhaps Asian countries haven’t been rich long enough for the risk to show up yet.

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Wait. What? 8. Everyone should eat a vegan diet, except for most people Although their diet plan is intended for all “generally healthy individuals aged two years and older,” the authors admit it falls short of providing proper nutrition for growing children, adolescent girls, pregnant women, aging adults, the malnourished, and the impoverished—and that even those not within these special categories will need to take supplements to meet their basic requirements. Sadder still is the fact that the majority of people in this country and in many other countries around the world are no longer metabolically healthy, and this highcarbohydrate plan doesn’t take them into consideration. “In controlled feeding studies, high carbohydrate intake increases blood triglyceride concentrations, reduces HDL [aka “good”] cholesterol concentration, and increases blood pressure, especially in people with insulin resistance.” [page 12] For those of us with insulin resistance (aka “prediabetes”) whose insulin levels tend to run too high, the Commission’s high-carbohydrate diet—based on up to 60% of calories from whole grains, in addition to fruits and starchy vegetables—is potentially dangerous. The Commission half-acknowledges this by recommending that even healthy people limit consumption of starchy roots like potatoes and cassava flour due to their high glycemic index, but oddly does not mention grain and legume flours, or high glycemic index fruits, leaving the door open for processed food companies to market products like pasta, cereal and juice beverages to its plant-based planet. High insulin levels strongly increase the risk for numerous chronic diseases and can mean a lifetime of medications, disability, and early death. If the Commission read its own report it would find support for the notion that those of us with metabolic damage may be better off increasing our meat intake and decreasing our carbohydrate intake: “In a large controlled feeding trial, replacing carbohydrate isocalorically with protein reduced blood pressure and blood lipid concentrations.” [page 8] This was the 2005 OmniHeart trial, which used 50% plant protein and 50% animal protein. It would seem the only people who should eat a vegan diet are people who make the informed choice to eat a vegan diet, despite the risks. 9. Pay no attention to the money behind the curtain As an advocate of meat-inclusive diets, I have often been assumed to have financial ties to the meat industry (which I do not), but how many people stop to question the financial (and professional) incentives that may influence doctors promoting plant-based diets? We all have personal beliefs and we all need to make a living, but honesty with oneself and transparency with the public should be paramount. The Nutrition 22

Coalition has compiled a list of Dr. Willett’s potential conflicts of interest that is available online.10 The EAT Foundation, which collaborated with The Lancet to produce this report, was founded by Norwegian billionaire and animal rights activist Gunhild Stordalen. EAT recently helped to launch “FReSH” (Food Reform for Sustainability and Health), a global partnership of about 40 corporations, including Barilla (pasta), Unilever (meat alternatives and vegetable oils), Kellogg’s (cereals) and Pepsico (sugary beverages). Make of this what you will. 10. No to choices, yes to taxes? How does EAT-Lancet propose to achieve its dream of a plant-based world? Many suggestions are put forth, but two are worth emphasizing: the elimination or restriction of consumer choices, and taxation. The EAT Foundation describes itself as: “a non-profit startup dedicated to transforming our global food system through sound science, impatient disruption and novel partnerships.”11 Sound science? Clearly not. But impatient disruption— what does that mean? Regardless of how you feel about taxation as a tool for social change, consider the Commission’s own numerous exceptions to the plant-based rules, including pregnant women, children, the malnourished and the impoverished. Should we really support making animal foods—the only nutritionally complete foods on Earth—even more expensive for vulnerable populations? The notion of taxation is followed by a vague reference to the possibility of “cash transfer” social safety nets for women and children. This section of the report is representative of its overall elitist and paternalistic tone. I believe, because I’m convinced by the science, that animal foods are essential to optimal human health. This is an uncomfortable biological reality we all have to wrestle with as creatures of conscience. Finding ways to support excellent health and quality of life for the creatures we depend on for our sustenance and vitality is one of our most important callings as caring stewards of our planet and all of its inhabitants. But I’m also a firm believer in personal choice. We each need to become experts in what works best for our own bodies. Eat and let eat, I say. It seems clear that EAT-Lancet commissioners are neither supporters of personal choice nor the transparent distribution of accurate nutrition information that would empower people to weigh the risks and benefits of various diets for themselves. Challenge Authority The EAT-Lancet report has the feel of a royal decree, operating under the guise of good intentions, seeking to impose its benevolent will on all subjects of planet Earth. It is well worth challenging the presumed authority of this group of 37 “experts,” because it

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wieldsDF: tremendous power influence, I don’t think beingand on the island has access to billions of dollars, and one is has really impacted us negatively likely to affect your health, your choices, way or the other. We’ve traveled a lot, and your checkbook in the near future. met a lot of other farmers and livestock producers in other parts of Canada, and

Capitalizing on our current public we all seem to have the same issues health and environmental crises, the and same concerns. EAT-Lancet Commission pronounces itself as the authority on that the your science CMB: I understand farmof nutrition, worstCanada fears, and wasexploits the first our in Atlantic to be seeks involved to dictate our food choices in in the TESA program. accordance with its members’ personal, DF: Yes, I think we were the first farm professional and possible commercial east of Ontario as far as I understand. interests. I’m not sure why the eastern

wouldn’t havethere previously To the associations best of my knowledge, has nominated anybody because there are never been a human clinical trial designed farms effects here on of PEIsimply doing every to testmany the health removing animal from diet, a bit as much foods as we are asthe to attain withouthigh making any other diet or lifestyle level of sustainability. Anyway, changes as eliminating refined we such were very surprised when the PEI carbohydrates and other processed Cattleman’s Association nominated our foods. farm. Unless and until such research is conducted demonstrating clear benefits And the thenassertion you were that attending the to this CMB: strategy, human conference in Calgary beingsCanadian would beBeef healthier without animal and you won. foods remains an untested hypothesis with clear risks to human life and health. DF: Yeah! That was a very nice moment Prescribing plant-based diets to the planet for us. But I don’t like to use the without including straightforward warnings word win actually. However, being of these risks and offering clear guidance recognized for our commitment was as to how to minimize them is scientifically a real honour. If you want to know irresponsible and medically unethical, and the should truth, it was a pretty therefore not form thehumbling basis of experience. As I said to CBC when they public health recommendations. phoned me after the conference, I was just floored, really couldn’t believe it. Georgia Ede, MD is a Harvard-trained,

board-certified psychiatrist specializing

CMB: So in now that you have been and nutrition-focused counseling consulting individuals recognized, do youservices think for that will and fellow clinicians. She speaks draw moreinternationally attention and garner more about the benefits of nominations out of Atlantic Canada including meat in a healthy diet and writes for PsychologyToday.com going forward?

and DiagnosisDiet.com. This article was originally on Jan 19, 2019 at https://www. DF: published Absolutely. We’ve gotten a lot psychologytoday.com/us/blog/diagnosis-diet/201901/eatof good press highlighting the island lancets-plant-based-planet-10-things-you-need-know

cattle industry. I’m positive you’ll see

Endnotesmore farms in our neck of the woods 1 https://www.frontiersin.org/ nominated next year. And I have to give `articles/10.3389fnut.2018.00105/full; https://jamanetwork.com/journals/jamafullarticle/2698337 the Canadian Cattleman’s Association 2 https://www.psychologytoday.com/us/blog/diagnosisrecognition for choosing a farm from diet/201809/latest-low-carb-study-all-politics-no-science 3 https://rss.onlinelibrary.wiley.com/doifull/10.1111/j.1740Prince Edward Island. We are small 9713.2011.00506.x players in the national beef industry 4 http://www.diagnosisdiet.com/meat-and-cancer/ 5 https://www.ncbi.nlm.nih.gov/pmc/articlesPMC5852673/ and I think it was a real credit to their 6 https://www.ncbi.nlm.nih.gov/pmc/articlesPMC6267444/ 7 https://www.cdc.gov/MMWR/preview/mmwrhtml/ organization to recognize us. They mm5140a1.htm treated all the nominees royally and it 8 http://www.diagnosisdiet.com/micronutrients-mental health/ was a real class act. It was a wonderful 9 https://www.scribd.com/document/397606854/Walter- experience. Willett-Potential-Conflicts-of-Interest 10 https://eatforum.org/ 11 Willet W et al. Food in the Anthropocene: the EAT– Lancet Commission on healthy diets from sustainable food systems. The Lancet Commissions. Feb 2, 2019;393(10170):447-492. https://www.thelancet.com/commissions/EAT

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100TH ISSUE | March/April 2019

September/October 2017 CANADIAN MEAT BUSINESS 17

CANADA INVESTS IN INNOVATION TO HELP GROW BIOECONOMY

CULTURED LAB MEAT MAY NEW CLIMATE SURREY CHANGE MAKE SLAUGHTERHOUSE WORSE

MCGILL UNIVERSITY RECEIVES $7 MILLION TO FUND BIOMASS RESEARCH

GROWING MEAT IN THE LABORATORY MAY DO MORE DAMAGE TO THE CLIMATE IN THE LONG RUN THAN MEAT FROM CATTLE, SAY SCIENTISTS

The bioeconomy sector holds tremendous potential for Canada, helping to reduce our carbon footprint while creating opportunities to grow the economy. Lawrence MacAulay, Minister of Agriculture and Agri-Food, Parliamentary Secretary Jean-Claude Poissant and Member of Parliament, Francis Scarpaleggia, were at the Macdonald Campus at McGill University to announce a federal investment of up to $7 million to the Biomass Cluster under the Canadian Agricultural Partnership. The Cluster, led by the BioFuelNet Canada Network, will include an additional $3.1 million in contributions from industry, for a total investment of $10.1 million. Dr. Donald L. Smith, CEO, BioFuelNet Canada said, “The agricultural sector has a key role to play in the full development of Canada’s bioeconomy and the associated decrease in the carbon footprint of the energy and materials that we consume and export. The potential payback of a thriving agro-bioeconomy to Canada is enormous in that it will cause meaningful reductions in Canadian greenhouse gas emissions and create new wealth and employment in the agricultural sector. The Biomass Canada cluster is focused on research that will help make this happen.” This new research cluster will drive innovation and help improve technologies for processing agricultural biomass, including waste material, which can then be used as a renewable and sustainable starting material for production of cleaner bioenergy, and other biobased products. The cluster will focus on three key areas of research including: • Advanced technologies to boost biomass production; • Using biomass heat and energy to extend the greenhouse growing season in Northern Canada; and • Reducing production costs and expanding export markets for biomass. As part of the research cluster, McGill University will

receive up to $888,061 in funding for a project that will focus on the development of biological inputs that will enhance the growth of biomass crops including switchgrass.

QUICK FACTS •

BIOMASS IS PRODUCED FROM BIOLOGICAL WASTE MATERIAL FROM PLANTS OR ANIMALS THAT CAN BE USED AS A RENEWABLE AND SUSTAINABLE SOURCE OF CLEAN ENERGY.

•

SIGNIFICANT VOLUMES OF WASTE MATERIALS, RANGING FROM LIVESTOCK MANURE TO FOOD PROCESSING WASTE TO FOOD WASTE, ARE CONVERTED INTO BIOGAS EACH YEAR.

•

THE CANADIAN AGRICULTURAL PARTNERSHIP IS A FIVE-YEAR, $3 BILLION INVESTMENT BY FEDERAL, PROVINCIAL AND TERRITORIAL GOVERNMENTS TO STRENGTHEN THE AGRICULTURE AND AGRI-FOOD SECTOR. THE PARTNERSHIP INCLUDES PROGRAMS AND ACTIVITIES TO ENHANCE THE COMPETITIVENESS OF THE SECTOR THROUGH RESEARCH, SCIENCE AND INNOVATION.

•

THIS RESEARCH CLUSTER IS FUNDED THROUGH THE AGRISCIENCE PROGRAM, A FIVE-YEAR, $338 MILLION INITIATIVE, TO SUPPORT LEADING EDGE DISCOVERY AND APPLIED SCIENCE, AND INNOVATION DRIVEN BY INDUSTRY RESEARCH PRIORITIES.

‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS

Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility By Matt McGrath, BBC News By Amy Reid, Peace Arch News

Researchers looking for alternatives toworks traditional meat because farming animals is helping so as to not emit odours. And while there is an operational A federally are licensed beef processing facility is in the 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. to drive up global temperatures. “There’s a new building coming forward, a new abattoir, I

However, meat in the lab may make matters think that’sgrown the French pronunciation of slaughterhouse,” worse in some circumstances. said Councillor Mike Starchuk. “So Surrey will have a Researchers say it with depends how the energywill tohave make newer facility a betteron capacity so people the lab the meat is produced. ability to not have to ship an animal to Alberta to have it processed. The applications have gone through the

March/April 2019 | 100TH ISSUE

seeking a Canadian Food Inspection Agency license for

Because of these impacts on athe climate and because the proposed abattoir, to become federally registered establishment expand the operation. would ofmeat a range of otherand concerns about issuesThis such as allow theand meat products to be scientists transportedhave beyond welfare sustainability, in B.C.’s recent boundaries. years sought to develop meat that can be grown from animal cellsis in or laboratories. “Our focus onfactories trying to bring a more efficient, sustainable

Agricultural andtrying Food Sustainability Advisory Committee.” Why are scientists to grow meat in the lab? There’sThe increasing concern on about the impact facility is proposed a 25-acre propertyof within the meat consumption onReserve the planet. Around a quarter Agricultural Land at 5175 184th St. The planned of the greenhouse that are driving local product to the market, realizing we can do that now 30,000-squaregas footemissions abattoir in Cloverdale would process up in a very limited sense,” said Les. “I caution people when to 100 headare of cattle per day.to have come from One perceived advantage would be much lower up temperatures estimated talking to them andemissions, they say, ‘What a big plant, that’s going greenhouse gas especially methane. agriculture. According to a city report, that would make it larger than any other processing facility in B.C.. But it would still be Beef production is considered worst to offender with small by industry standards,the compared the largest meat cattle emitting methane nitrous oxide 3,000 from heads their of processing plants in and Alberta that process cattle day.from their digestive processes. manures, butper also

There are additional from Thealso proposed facility gases would be fully fertiliser enclosed and designed

meatbusiness.ca

only process a limited number of cattle.

application to land,manager from the conversion land for Chris Les is general of Meadow Valleyof Meats, pasture or feed production. the company behind the project. Meadow Valley Meats is

to go allow you to go mainstream.’ Well, yes, if you look in thehave context of B.C., but this is still a efforts very niche plant How these meat growing fared? and we’ll serve a niche industry for producers and for the what Back in 2013 a Dutch team of scientists produced market. It’s certainly not going to be a monstrosity of a plant they claimed was the world›s first burger grown in a lab. but it’ll be a big upgrade from the site currently.” Continued on page 32 continued on page 26

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What happens if meat consumption goes down in Canada’s the future?preferential market access to 495 million consumers (once all members ratify the deal) can help One of the scenarios that the researchers looked at saw displace U.S. exports as Canadian beef exports face to meat consumption increase initially and then decline lowersustainable tariffs. Japan typically more levels over imports time. about 30.0% of their beef from the U.S. The reduced tariffs on pork should boost Canadian exports members which The scientists found that to theCPTPP cattle production systems imported C$1.39 billion worth of pork products in 2017. generally showed greater peak warming within this time frame, but as a result of the persistence of large scale The new Canada-U.S.-Mexico Agreement, or CUSMA, CO2 emissions in the early period of production for deal could be implemented in 2019. It replaces NAFTA cultured meat, “any long-term benefits of this production with the same access granted for animal and meat are further reduced compared to cattle systems. exports. Mechanisms to resolve trade disputes were also preserved; these have been helpful for livestock “It may well be that these things are so energy efficient sectors in the past. New grading schemes introduced that it would simply be replacing a in the deal will further harmonize the high-impact activity with a low one,” North American cattle supply chain. said Dr Lynch. Weaker loonie will help offset “But from the cultured meat systems that pressures on net farm income are out there at the moment, we can’t The loonie declined steadily in 2018. make that assessment for sure yet.” We forecast it to average US$0.75 for 2019 – a good news story for livestock Surely making the lab might producers andmeat meatinprocessors. have other benefits apart from climate change? Helping to depress the Canadian dollar

Since then, there’s been a lot of hype and noise but some real progress as well.

methane and nitrous oxide have different impacts on the climate.

Essentially, the process involves collecting stem cells from animal tissue and then getting them to differentiate into fibres, these are then developed and grown into a sufficient mass of muscle tissue that can be harvested and sold as meat.

“Per tonne emitted, methane has a much larger warming impact than carbon dioxide. However, it only remains in the atmosphere for about 12 years, whereas carbon dioxide persists and accumulates for millennia,” said co-author Prof Raymond Pierrehumbert. “This means methane’s impact on long-term warming is not cumulative and is impacted greatly if emissions increase or decrease over time.”

Firms in California have taken some important steps. Last year, chicken nuggets, developed by a firm called Just, were tasted by my colleague James Cook. Tyson Foods, one of the biggest US meat processors, has also invested an undisclosed amount in Memphis Meats, another firm in this field that says it is “harvesting cells instead of animals”. But despite the promises, no-one has yet massproduced cultured meat for sale to the general public. So what has this new study found? Researchers from the Oxford Martin School looked at the long-term climate implications of cultured meat versus meat from cattle. The scientists say that previous studies had tended to look at the various emissions from cattle and converted them all to their carbon dioxide equivalent. The team says this doesn’t give you the full picture as 26

The scientists’ climate model found that in some circumstance and over the very long term, the manufacture of lab meat can result in more warming. This is because the emissions from the lab are related to the production of energy which is almost entirely made up of carbon dioxide, which persists in the atmosphere for hundreds of years.

this year: Yes, the authors2019 say that a number • Challenged oil prices, as of other factors should be considered production increases and demand including slows.water pollution that cultured meat may avoid. But other experts say • Rate on both sides of the that isn’t increases so clear cut. border. Enjoying its second-longest economic “Artificial meatexpansion may resultperiod in theever, the U.S. will break the record presence of organic or chemical if that growthresidues extendsininto summer. Watch molecule water, because for the Federal Reserve to hike the process would need to produce rates possibly three times hugeinterest amounts of chemical and organic in 2019. Here at home, the Bank of molecules, such as hormones, growth Canada expects inflation to hit factors, to add to the culture medium its 2.0% mid-point target, with an to grow the meat” said Prof Jeaneconomy near full-capacity. Francois Hocquette, at the French Financial markets currently expect National Institute for Agricultural no more than two overnight rate Research, who wasn’t involved with increases of 25 bps this year, with the study. the first hike coming in the second half of the year. Will this research discourage people from eating cultured meat? On the radar It’s far too early to tell as the products • Food retail pricing trends - a large really haven’t emerged from the supply of red meat proteins in North laboratory yet. America in 2019 should continue

“The climate impacts of cultured meat production will depend on what level of sustainable energy generation can be achieved, as well as the efficiency of future culture processes,” said lead author Dr John Lynch.

to make beef and pork competitive Some say thatretailers culturedmay at researchers the retail level. Food meatseek hasto many other barriers to for pass on higher costs overcome before it’s a huge hit with this labour and energy to consumers consumers. year and this could lift food inflation

“If the lab-grown meat is quite energy intensive to produce then they could end up being worse for the climate than cows are.”

and slow demand growth. “It is worth noting that most • Evolution in the concentration consumers have never heard of levels of the vomitoxin DON the know Ontario cultured meat, and many in don’t

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that conventional meat production damages the corn supplies, and shiftsfrom in the University environment,” said Drpossible Chris Bryant feeding costs. of Bath who has studied the issue. • Expectations of a weaker global economy in 2019, “Consumers whobylearn about cultured meat usually driven in part uncertainty around China’s ability think the benefitseconomic to animals. Having said to primarily sustain itsofdebt-fuelled expansion without triggeringfactors inflation. debt is growing that, environmental willChinese be an issue fora some risk to monitor. consumers, and many environmentally conscious buyers are already moving away from meat and dairy For more information about the 2019 outlooks for other sectors, visit consumption.” fcc.ca/AgEconomics

The study entitled “Climate Impacts of Cultured Meat and Beef Cattle” can be found at https://www.frontiersin.org

“FCC is competitive and understands our business.” René Proulx, FCPA, FCA President and Chief Executive Officer Exceldor coopérative Food products processor

The food business is unique Your financing should be too Grow with a lender who understands Canadian food. With over 100,000 customers, Farm Credit Canada can help build your business success story.

fccfinancing.ca

January/February 100TH ISSUE | March/April 2019

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GOVERNMENT INVESTS IN INDUSTRY-LED ANIMAL WELFARE ACTIVITIES

MAPLE LEAF PLANTS RECOGNIZED FOR WORKPLACE SAFETY ACHIEVEMENTS

The livestock industry strives to continuously improve its capacity to respond to increasing demands by consumers and markets to demonstrate the highest quality of animal care.

Four Maple Leaf Foods (TSX: MFI) plants were recently recognized by the North American Meat Institute (NAMI) and the National Safety Council with awards for their workplace safety achievements.

Minister of Agriculture and Agri-Food, Lawrence MacAulay has announced an investment of up to $4.56 million to the Canadian Animal Health Coalition (CAHC), on behalf of the National Farm Animal Care Council (NFACC), to help update and develop Codes of Practice for the care and handling of farmed animals. The investment was made through the AgriAssurance program of the Canadian Agricultural Partnership. “Our Government is proud to support the livestock and aquaculture sectors in their efforts to raise healthy, productive and well-cared animals”, stated Minister MacAulay. “This investment will ensure Canadian standards are in place and up-to-date to meet new and emerging consumer and market demands, while building consumer confidence about how farmed animals are raised and transported.”

“Livestock and poultry welfare is important to everyone, from the animals themselves to producers and consumers. We are pleased the Government of Canada has chosen to invest in this project to help improve farm animal well-being and address expectations of consumers and the marketplace,” said Ryder Lee, Chair of the National Farm Animal Care Council.

QUICK FACTS •

CANADA IS WORLD-RENOWNED FOR OUR HIGH-QUALITY LIVESTOCK AND AQUACULTURE SECTORS. THESE TWO SECTORS DRIVE CANADA’S ECONOMY, GENERATING OVER $25 BILLION IN FARMGATE RECEIPTS.

•

THIS INVESTMENT IS BEING MADE THROUGH AGRICULTURE AND AGRI-FOOD CANADA’S AGRIASSURANCE PROGRAM, UNDER THE CANADIAN AGRICULTURAL PARTNERSHIP.

The investment will be divided between four activities including: •

Updating the transportation Codes of Practice for the care and handling of farm animals during transport;

•

Updating the dairy Code of Practice that will address new scientific findings, changes in industry practices and address changes in market and consumer demands;

•

Updating the goat Code of Practice that will respond to growing buyer and consumer expectations for onfarm animal welfare; and

•

Developing a new Code of Practice for farmed finfish. Fish welfare is a new and emerging animal welfare concern for which the industry needs to be able to demonstrate its commitment and alignment with public values and consumer expectations.

•

THE CAHC IS A NON-PROFIT ORGANIZATION SERVING CANADA’S FARMED ANIMAL INDUSTRY. THE ORGANIZATION IS A PARTNERSHIP OF CROSS-SECTORIAL ORGANIZATIONS, ALL RECOGNIZING A SHARED RESPONSIBILITY FOR AN EFFECTIVE ANIMAL HEALTH SYSTEM.

•

THE NATIONAL FARM ANIMAL CARE COUNCIL (NFACC) IS A COLLABORATIVE PARTNERSHIP OF DIVERSE STAKEHOLDERS CREATED TO SHARE INFORMATION AND WORK TOGETHER ON FARM ANIMAL CARE AND WELFARE. IT IS THE NATIONAL LEAD FOR FARM ANIMAL CARE IN CANADA.

Speedvale in Guelph, Ontario, Cappola in Toronto, Ontario, and Walker Drive in Brampton, Ontario, all received the Award of Honor while Toronto Poultry in Toronto, Ontario, received the Award of Merit. In September 2018, Maple Leaf’s Edmonton plant received the Award of Honor from the Poultry Industry Safety Council. NAMI’s Worker Safety Recognition Awards Program aims to motivate employers to improve their safety performance through the establishment of sound safety and health programs at the plant level, and to recognize those plants that have achieved a high level of safety performance as part of a continuing effort to reduce occupational injury and illness. All Maple Leaf plants that applied for awards were recognized.

Maple Leaf sites within the corporate family of plants and barns sustained zero recordable injuries. “Today we celebrate our operational achievements in workplace safety, but we know there is still work to be done to make our workplaces even safer,” said Michael H. McCain, president and CEO. “We have set a goal to reduce injuries by an additional 20 per cent by 2021, on the path to our aspiration of zero injuries at all Maple leaf sites.”

Workplace safety is a key priority for Maple Leaf. In 2009, the company adopted a “Safety Promise” to dedicate itself to enhancing workplace safety and food safety. Four years later, Maple Leaf began an internal safety awards program designed to keep the spotlight on safety, and each year, top performing plants are honoured internally in a special ceremony. More recently, in 2018, the company declared its purpose to “Raise the Good in Food” through a progressive and purposeful sustainability platform including a strong focus on caring for people. Maple Leaf Foods leads the North American meat, poultry, prepared meats, and hog and pig farming industries in overall safety performance. In 2018, the company’s overall “recordable injury rate” reached an all-time company low (0.66), comparable to world leaders in “all manufacturing”. In addition, in 2018, 29 36 CANADIAN MEAT BUSINESS September/October 2017

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CUSTOMER RETENTION STRATEGIES FOR THE MEAT AND POULTRY DEPARTMENT SATISFYING BASIC PSYCHOLOGICAL NEEDS OF CUSTOMERS By Ronnie P. Cons

It has been my experience that many brick and mortar firms including grocery stores tend to focus on new client acquisition while neglecting efforts to keep existing customers. The truth is that the main marketing effort of the meat and poultry department should be on enhancing customer retention and loyalty. This in turn will lead to satisfied customers who will then become brand advocates. And we all know that word of mouth communication is the most powerful influencer to bring in new customers. The importance of initiating a customer retention strategy in marketing studies reveals that it takes five to ten times more effort and investment to acquire a new customer than it does to retain an existing one. These studies show most sales come from existing customers and about 20% of customers are lost annually due to a lack of a cordial relationship at the store. Most unhappy customers will complain to others dissuading them from becoming future customers. Here are some customer retention strategies that the manager of the meat and poultry department can implement: 1. Proactive Customer Support. Train meat department employees to reach out to the customers who are circulating in their department and to ask them if they have any questions or would like recipe sheets or nutritional information. Have them strike up meaningful and friendly conversations where they get to know their customers better. They can learn about their children and spouses, their respective diet preferences and what meats they enjoy the best. Establishing such a personal relationship shows the customers that you care about their needs. This leads to a stronger connection, trust and hence store loyalty. 2. Take Advantage of Customer Feedback Surveys. With the customerâ&#x20AC;&#x2122;s email address, the manager can also now send out surveys asking them how they liked the customer service and the products that they purchased. Asking customers their opinion shows them that you care about their needs which in turn enhance trust and customer retention. In addition, any negative feedback can be used to

improve service or product quality. Not only that, but studies show that about 70% of customers whose complaints were dealt with effectively stay loyal. 3. E-mail Educational Newsletters. A monthly newsletter with recipe tips and nutritional advice or interesting food science news will engage the customer and make them feel part of a wider community of recipients which will enhance customer retention. 4. Establish a Larger Community. This means making the customers feel that they are part of a community of customers that are linked to each other in a social and commercial manner. This can be done by establishing a bulletin board of sorts on the grocery storeâ&#x20AC;&#x2122;s meat section of the web site where customers are empowered to express their opinions and food advice. In addition, store events such as taste tests or new product launches will lead to socialization at the store leading to more loyal customers. We can note that the common denominator of most of the above initiatives is the focus on satisfying the basic human needs found in all of ones customers. These include the need to be cared about, to connect to others, and be respected and valued as a person not just as a source of revenue for the store. Initiating a Customer Retention Program is a wise investment that will lead to the creation and retention of more loyal and satisfied customers as well as increased profits.

A D VA N C E D L I S T E R I A M O N O C Y T O G E N E S I N T E R V E N T I O N A N D C O N T R O L W O R K S H O P

A N I M A L

C A R E

A N N U A L

M E AT

C E N T E R

O F

A N D

H A N D L I N G

C O N F E R E N C E

T H E

P L AT E

E N V I R O N M E N TA L F O R T H E M E AT &

T R A I N I N G

C O N F E R E N C E P O U LT R Y I N D U S T R Y

FA L L F O R U M W I T H N A M I A N N U A L M E E T I N G A N D B O A R D O F D I R E C T O R S M E E T I N G

FA M I LY

B U S I N E S S

W O R K S H O P

M E AT I N D U S T R Y S U M M I T & B O A R D O F D I R E C T O R S M E E T I N G PAT H O G E N C O N T R O L A N D R E G U L AT O R Y C O M P L I A N C E I N B E E F P R O C E S S I N G C O N F E R E N C E W O R K E R S A F E T Y C O N F E R E N C E F O R T H E M E AT & P O U LT R Y I N D U S T R Y

Each year the North American Meat Institute in conjunction with the Foundation for Meat & Poultry Research & Education, conducts a series of annual conferences and educational workshops to meet the needs of our membership, the meat industry and their retail and food service customers.

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

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100TH ISSUE | March/April 2019

GOVERNMENT INVESTS OVER $50 MILLION IN AGRICULTURAL SECTOR While celebrating Canada’s Agriculture Day 2019 with farmers, ranchers, food processors, industry leaders and youth in Ottawa, Minister of Agriculture and Agri-Food Lawrence MacAulay announced the new Canadian Agricultural Strategic Priorities Program (CASPP), an investment of $50.3 million over five years. Funding available through this program will help facilitate the sector’s ability to address emerging issues and capitalize on opportunities. Canada’s agriculture and agri-food system contributes over $114 billion to our gross domestic product, and provides safe, nutritious and sustainable food for the world, while creating well-paying jobs for our middle class The sector is working hard to find innovative approaches to respond to growing domestic and global demand while addressing emerging challenges and maintaining its environmental sustainability. “Our farmers know that to stay competitive and on the cutting edge we need to continue to adapt and develop new and innovative approaches to agriculture”, said Minister MacAulay. “Canada’s agricultural sector is strong and growing. Our farmers know that to stay competitive and on the cutting edge we need to continue to adapt and develop new and innovative approaches to agriculture. The Government of Canada is committed to supporting the sector find new ways to respond to new and emerging issues, and seize new market opportunities.”

The CASPP focuses on four priority areas: adoption of new technology; environmental sustainability; strategic development and capacity building; and, emerging issues. Examples of potential projects could include those addressing artificial intelligence technology, tools to assess future labour and skills needs, biocrops, environmentally sustainable farming techniques and strategies to help the sector adapt to changes in consumer preferences. The program also builds on other Government of Canada initiatives to support competitiveness and sustainability in the agricultural sector. These include the $3-billion, five-year Canadian Agricultural Partnership, $70 million announced in Budget 2018 to support agricultural discoveries in science and innovation to address climate change and soil and water conservation, the $25 million Agricultural Clean Technologies Program, and the Strategic Innovation Fund.

M&M FOOD MARKET EXPANDING RETAIL OPERATIONS By, Mario Toneguzzi Retail Insider

M&M Food Market is using strategic partnerships with bigger chain stores to increase its brand awareness and grow its national footprint. At the same time, the retailer is also expanding its network of standalone stores. Recently, the Mississauga-based company said it is expanding its M&M Food Market Express concept through partnerships with Rexall, Avondale Food Stores in Ontario and Beaudry-Cadrin in Quebec. “Going into this, we had a vision for a model that gave us cost-effective entry to highly-developed urban markets as well as smaller regions where M&M was under-represented,” said Andy O’Brien, CEO of M&M Food Market. The company currently has 110 Food Market Express locations open. “With the help and commitment of our partners, I’m very confident we will achieve our goals and I’m thrilled to say 32

the introduction of M&M Food Market Express means we’re on track to hit our goal of 200 Express stores by the end of 2019.” O’Brien said the company has seven different partners to deliver the Express format. “They’re all picked specifically to complement our network.” M&M began in 1980 with its first location in Kitchener, Ontario to provide restaurant quality foods. Today, it has over 450 locations across Canada “and growing every month,” said O’Brien.

March/April 2019 | 100TH ISSUE

FAO AFFIRMS CATTLE’S CRITICAL ROLE AS UPCYCLER

“I see that we could have significant more growth on both the traditional stores as well as the Express stores. When we evaluate the business we determined that there’s probably 250 to 300 additional stores that we could put into Canada. In the last two years, we’ve opened probably 18 traditional stores and we’ll continue to open five to 10 traditional stores a year going forward. By traditional stores, I mean the full-service stores. The Express concept is different in that they’re smaller stores, limited portfolio and they go into irregular places usually where there’s high traffic like convenience stores or pharmacies.” O’Brien said the story of M&M’s new shift in strategy began in 2014 when the company underwent a re-branding and a redesign of its stores. It also debuted its Real Food for Real Life promise that saw all artificial colours, flavours and sweeteners eliminated from their entire product portfolio. By Sara Place, Ph.D., National Cattlemen’s Beef Association

“We wanted to contemporize the business and really set it up for growth and prosperity today’s feed consumer,” hehuman said. “In food five years we spent million In thewith livestock versus debate, we $20 haven’t been doing this. We positioned the business from M&M Meat Shops to M&M Food using the right numbers. Rather than being a drain on global Market. Spent $1.5 million on research figuring out how to evolve the portfolio resources and competing with human food supplies by eating lots and figuring a new design for the stores.”

of grain, livestock are often net contributors to the global protein

“Thesupply. second That’s thing wethe didconclusion is we revamped per cent of our portfolio. We got of a60new study from scientists at rid the of poor performing products and products that weren’t on trend. We removed all United Nations Food and Agriculture Organization (FAO). the artificial sweeteners, flavours and colours from every one of our products. We launched that last January and to this day we’re the only national food retailer in The FAO researchers developed a global database of what eat and We found Canada that can make that claim. We launched probably 150livestock new products. 86 percent of thefree feedproducts. is humanWe inedible. Mostly, livestock eat grasses grown on launched 18 gluten launched premium single serves and meal landsofand other forage crops, like alfalfa. Marginal lands are those that kits marginal and all kinds great products that are much more contemporary for today’s are too rocky, steep and/or arid to support cultivated agriculture, such as fruit or consumer.” vegetable production. Globally, livestock also eat over 1.9 billion metric tons of

“Theleftovers third thing we did was built a new store design.” from human food, fiber and biofuel production.

For example, livestock eat the residues an of grain harvest (the stalks and leaves O’Brien said the company also launched artificial intelligence loyalty program. left in the field after corn harvest), the byproducts from milling grains for flour

“Most people don’t realize that cottonseed M&M captures cent ofofour transaction data.and production (wheat midds), that97 is per a leftover cotton production, and distillers grains that are byproducts of soy biodiesel and corn ethanol So ifglycerol you gave me your phone number I would know exactly what you bought, production, respectively. If livestock consume these plant-derived where you bought it, when you boughtdidn’t it, how much you paid for it going leftovers back to and byproducts, their disposal would likely result in an environmental burden. 2000,” he said. By being a part of the global food system, livestock enhance the sustainability of

Moreother recently, the company selling a selection of food products in six food production andtested industries. Rexall stores in Downtown Toronto as a means to efficiently grow sales channels, Considering that most of what cattle eat is not human edible, the FAO researchers customer base and overall brand awareness. Pilot programs conducted with found that 1 kg of protein in meat and milk only requires 0.6 kg of protein from Beaudry-Cadrin-owned Beau-soir stores and Avondale Food Stores also proved human food. Additionally, the protein in meat and milk is of higher nutritional positive and M&M Food Market has since entered into premier frozen food quality compared to the protein in grain that cattle eat. supplier relationships with all three brands. The FAO research represents global averages, but beef production in the U.S.

O’Brien said the goal ofwith the partnerships to attract new report customers who by the competes even less human edible is food. In a recent published otherwise have no brand familiarity due to limited or no access to stores. National Academies of Sciences, Engineering and Medicine, it was estimated that on average greater than 90 percent of what grain-finished beef cattle eat in “When we looked at our network, there were a number of places where we their We lifetime human forages and plant-derived leftovers. Lessservice than 10 weren’t. wereisin someinedible small towns that really didn’t justify a full-size percent of their lifetime feed consumption is grain that could potentially be store. So we started looking at creative ways that we could be in these ruraleaten by people.as well as these urban markets for some presence. And one of the communities ideas was toindevelop Expressbyconcept which a limited selection store that Further, a report an published the Council forisAgricultural Science and goesTechnology, inside another he said. “They tend were to carry about 75 to 10019 products U.S. store,” grain-finished beef systems found to contribute percent and more we basically become like Rexall’s provider for the frozen foods.” human edible protein than theyfrozen consumed. Sara Place, Ph.D., is a Senior Director, Sustainable Beef Production Research, with the National Mario Toneguzzi is an experienced business writer, his main beats are Cattlemen’s Beef Association. commercial and residential real estate, retail, small business and general View the news. FAO study at: http://www.sciencedirect.com/science/article/pii/ economic S2211912416300013?via%3Dihub

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September/October 100TH ISSUE | March/April 2017 2019 CANADIAN MEAT BUSINESS 27 33

SMALL BUSINESSES CAN’T PASS ON THE CARBON BUCK By Ryan Mallough

On April 1, Ontario, Saskatchewan, Manitoba and New Brunswick will see gas prices jump by over four cents per litre as a result of the federal carbon tax. If you’re a resident, you’re going to see a nice line on your tax return to help offset the costs. If you’re a small business, you won’t be so lucky. Non-households (small- and medium-sized businesses, municipalities, universities, school boards and hospitals) will account for about half of the fuel charges paid, but will receive only seven per cent of the funding, through yet-tobe-defined green programs. When all is said and done, consumers will receive 90 per cent of the government’s “Climate Action Incentive” payments. The big guys – you know, the ones with the stock prices – will see full exemptions or partial shielding for their emissions. And small business owners will be left footing the bill. But fear not, local small business owners, the government says you can simply pass on the cost to your customers, not just this year, but for each of the next four years as the carbon tax grows from $20/tonne to $50/tonne. Just like you can pass along the costs of the Canada Pension Plan (CPP) premium hikes brought in on January 1, set to go up every year for the next seven years. What about last year’s 21 per cent minimum wage increase in Ontario, or this year’s 56 per cent on-average workers’ compensation premium increase in New Brunswick? Hydro rates in Manitoba are continuing to increase, as are municipal property taxes in many communities across Saskatchewan. And let’s not forget the impact the federal tax changes are having across the country. Does anyone else notice a theme here? Despite what government technical documents claim, passing on the cost of the carbon tax is not going to be so simple. In fact, eight in 10 small business owners report they will be able to pass on less than a quarter of the cost to their customers. More than half say they won’t be able to pass along any of it. The hit will be particularly hard on agri-business owners, where the numbers jump to 77 per cent being unable to pass on any of the carbon tax to their customers.

To paint a picture of the impact, an example was recently provided by a small Saskatchewan trucking company that will see its diesel costs increase by more than $500,000 a year when the pricing plan is fully implemented. While there will be some offsets for farmers for the direct costs, producers will still face many indirect increases in their input costs, leaving them with higher costs to run their operations. Having to absorb the tax will not only put pressure on business investments or wage increases, but, ironically, business owners’ ability to further reduce their carbon footprint. The biggest reported barrier to reducing emissions was cost, and seven in 10 report that the carbon tax will reduce their ability to make further investments to reduce their emissions. Getting financing is already difficult for smaller firms. The carbon tax stands to exacerbate that problem. It’s important to note that small business owners have indeed been making a concerted effort to combat climate change and go green, without a carbon tax. Ninety-six per cent report implementing environmentally positive measures in the past three years, from recycling programs and reducing energy usage, to using environmentallyfriendly products and making their buildings more energy efficient. While there’s a solid business case to be made for any of these measures, 84 per cent of business owners acknowledge that they’re motivated by their personal views, with many saying that it’s “the right thing to do”. The carbon tax clearly fails the fairness test. What’s more, it’s unaffordable for small businesses at a time when cost pressures keep piling up. It’s not too late for the federal government to slam the brakes on its unfair and unaffordable plan, and instead, work with the provinces to reduce emissions without disproportionately burdening small employers. The last thing Canada’s small businesses need right now is a government policy that leaves them holding the carbon tax bag.

Key industries like manufacturing, transportation and construction will be among the hardest hit. This tax will add nearly $575 each year for every vehicle using 100L of fuel per week. The cost of diesel will be higher still, and the price of natural gas for heating will see a dramatic increase. 34

March/April 2019 | 100TH ISSUE

Ryan Mallough is the Director of Provincial Affairs, Ontario for the Canadian Federation of Independent Business (CFIB). CFIB has 110,000 small and medium-sized member businesses (7,200 agri-business members) across Canada.

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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 100TH www.yesgroup.ca ISSUE | March/April 2019 July/August 2017 CANADIAN MEAT BUSINESS 35 35

28 CANADIAN MEAT BUSINESS 2019 Meat Buyer's Guide

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March/April 2019 | 2018 100TH ISSUE September/October

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