May/June 2019
2
March/April 2019 | 100TH ISSUE
May/June 2019
5 6 10 12 13 16
Open Letter to the Attorney General of Ontario
By Kurtis R. Andrews
Isn’t Beef Canada’s Ultimate Plant Based Protein? TIFFA 2019 – Where Tradition Meets High Tech Farm Property Incursions are a Risk to Animals and Families Plant-Based Burgers Signal Shift in Canadian Grocery Retail By Sylvain Charlebois
Feds Support a Strong and Innovative Canadian Pork Industry
18 22 25 28 28 29
Metal Detector Specialist Addresses Meat, Poultry and Fish Processing Allergen Risks What African Swine Fever Means for Canada’s Pork Industry By Paula Duhatschek – CBC News
Olymel’s New Plant in Yamachiche, QC Thai CPF to Acquire Canadian Pork Producer HyLife FCC Pledges $200,000 to Olds College Why Your Local Small Business Feels Burned By The Carbon Tax By Dan Kelly
4
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
OPEN LETTER TO THE ATTORNEY GENERAL OF ONTARIO
PUBLISHER
The Honourable Caroline Mulroney Ministry of the Attorney General McMurtry-Scott Building 720 Bay Street, 11th Floor Toronto, Ontario, M7A 2S9
Ray Blumenfeld ray@meatbusiness.ca
Re: No justice for farm victims of animal rights activists
May/June 2019 Volume 19 Number 3
MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Kurtis R. Andrews, Sylvain Charlebois, Christina Ducey, Paula Duhatschek, Dan Kelly CREATIVE DIRECTOR Patrick Cairns Canadian Meat Business is published six times a year by We Communications West Inc.
We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4 Phone: 204.985.9502 Fax: 204.582.9800 Toll Free: 1.800.344.7055 E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue. ©2018 We Communications West Inc. All rights reserved. The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher. Printed in Canada. ISSN 1715-6726
Dear Attorney General Mulroney: I write to you as an Ontarian concerned with agriculture issues and a member of the Ontario Bar. This letter follows today’s decision by the Middlesex Crown Attorney’s office to drop break and enter and mischief charges against Ms. Jennifer McQueen, reportedly for there being “no reasonable prospect of conviction”. Ms. McQueen admits that she broke into a pork farm and stole an animal. Not only has she posted video / pictures and boasted about her actions on social media, but she has, and continues to, encouraged others to follow her lead. I am outraged by the decision to drop the charges despite obvious evidence to support a conviction. This follows similar decisions in other Ontario jurisdictions to seek no penalty against Mr. Malcolm Klimowicz, after he broke into five different mink farms and also posted video and boasted about his exploits on social media. The same vague excuse was provided by the Durham Crown Attorney’s office, that there was “no reasonable prospect of conviction”. Once again, I am at a loss to understand how the prosecutions of these crimes are not being pursued. Recently, a group of activists brazenly trespassed into an Ontario dairy farm in broad daylight. They refused to leave the property and stole deadstock. A larger mass-trespass took place just days ago in Abbotsford B.C., where approximately 50 activists occupied a farm for several hours. There are allegations of assault in that case. The same thing is happening in other parts of the world, and such flaunting of the law will only get worse in Ontario if nothing is done to punish the perpetrators. What we are witnessing is nothing short of a breakdown of law and order. No matter what your beliefs happen to be, it is unacceptable to provide radical activists with a free pass to break the law. Farmers are living in fear. They should be treated with the same respect that any crime victim deserves. All farmers should be confident that the authorities will protect them like any other citizen of this province. All of this goes without saying that these incidents also obviously constitute serious biosecurity issues. I therefore implore you to take whatever steps are necessary to ensure that our laws are being enforced with adequate vigor, impartiality, concern for deterrence and a proper concern for the victims – being farmers in these cases. Thank you for your attention and I would welcome hearing how Ontario will address these issues. Sincerely, Kurtis R. Andrews Farm & Animal Welfare Lawyer
100TH ISSUE | March/April 2019 2019 CANADIAN MEAT BUSINESS 5 May/June
ISN’T BEEF CANADA’S ULTIMATE PLANT BASED PROTEIN? CANADA’S BEEF INDUSTRY PROVIDES UNIQUE ENVIRONMENTAL AND HUMAN HEALTH BENEFITS THAT PLANT-BASED ALTERNATIVES CAN’T REPLACE. The profile of plant-based proteins has grown exponentially over the past decade. Food companies are investing heavily in the development of new vegetarian and vegan products like new meatless burgers made from peas, which are quickly going mainstream. As plant-based protein options become more abundant, people can’t help but wonder how they compare to meat. Is producing plant-based proteins better for the environment than livestock? Are meatless options healthier? Should I replace beef burgers with plantbased patties? Environmentally, agriculturally and nutritionally speaking, Canadians need legumes and meat. There’s no good reason to choose one over the other – it’s best to choose both. In fact, beef production provides unique environmental and human health benefits, so it’s important to keep beef in the mix.
BEEF CATTLE SUPPORT NATURAL WILDLIFE HABITATS IN CANADA The beef sector uses one third of Canada’s agricultural land while providing two thirds of the country’s wildlife habitat. These lands are home to at risk 6
CANADIAN MEAT BUSINESS
March/April May/June 2019 2019
| 100TH ISSUE
specieslike the swift fox, sage grouse, and monarch butterfly among 579 birds, mammals, reptiles and amphibians that need uncultivated land for feeding, breeding, and shelter. When grasslands are lost to cultivation, vulnerable species decline.
ONE OF THE PLANET’S MOST ENDANGERED ECOSYSTEMS IS BEING PRESERVED BECAUSE OF CANADIAN BEEF CATTLE Canadian beef production is centered on the Northern Great Plains, one of only four temperate grasslands remaining on the planet. According to the World Wildlife Fund, half of the Northern Great Plains have already been lost to cultivated agriculture. These losses continue. Between 2000 and 2012, 23% of Canada’s remaining pastureland was converted to cultivated agriculture. As the environmental hoofprint of Canadian beef is shrinking, crop production’s plowprint is increasing. Increased cattle numbers can help slow or even reverse that trend, protecting the Northern Great Plains. Grassland in Canada evolved with grazing pressure from buffalo and other large ruminants. Grazing is essential for complex grassland ecosystems to flourish. Because cattle primarily consume grass, the presence of
woody shrubs can increase with grazing. Shrubs provide winter feed for deer and other browsers. Without grazing, grass gradually out competes the shrubs, eliminating the browsers’ preferred winter food source and resulting in long-term population declines in deer populations. Like the rainforest, Canada’s native grasslands are a unique and precious resource. Cultivating grasslands for crop production may destroy resources we’ll need in the future. For example researchers at the University of Lethbridge are studying components of the buffalo bean (a plant native to the Canadian prairies) to treat cancer.
CATTLE CAN UTILIZE AND SUPPORT LAND THAT CANNOT OR SHOULD NOT BE CULTIVATED Some land is not suited for cultivation because of climate limitations, marginal soil, or because it is too steep, rocky, swampy or forested. Cultivating these soils increases soil erosion and often requires greater use of fertilizers and other inputs to make them productive. Cattle allow high quality beef protein to be produced from land that cannot or should not be farmed.
HEALTHY GRASSLANDS HELP FIGHT CLIMATE CHANGE Perennial grasses store carbon in the soil – up to three times as much as annual crops do. Reseeding cultivated land to grass in the 1930’s (to combat soil erosion in the Dirty 30’s) and improving grazing practices in the 1950’s have shifted the Canadian prairies from a net carbon source to a net carbon source to a net carbon sink. Although cultivation and poor grazing management can lead to major soil carbon losses, appropriate grazing practices can reverse soil degradation, improve grassland quality, economic sustainability and resilience to climate change. This reinforces the need to keep grassland as grassland.
CATTLE AND CROPS GO WELL TOGETHER Crop rotations that include animal grazing may have fewer weeds and need less herbicide than rotations that don’t include grazing. Adding composted manure to cropland increased soil organic matter by 19%, improved soil moisture content, and improved soil microbial activity. Fertilizing with animal manure can Continued on page 8
VEMAG
REPLACEMENT PARTS
100TH ISSUE | March/April 2019 2019 CANADIAN MEAT BUSINESS 7 May/June
produce similar or higher crop yields than synthetic fertilizers. Winter bale or swath grazing of cattle also improves soil nutrient levels.
CATTLE AREN’T EATING YOUR LUNCH Cattle can feed on chaff, stems and regrowth after crops are harvested. Not all crops that are harvested meet the quality requirements for milling flour or brewing beer, but still make high quality feed for cattle. Cattle also eat the meals, screenings, cracked seeds, distillers’ grains, and other by-products from the crushing, milling, brewing and processing of oilseeds, pulses and grains. The added feed value of these by-products benefits the crop sector, particularly in years when weather during growing or harvesting doesn’t cooperate. People and cattle do not compete for the same foods. Even in Canada’s grain-finished beef system, over 80% of the overall feed consumed by beef cattle is high fiber forage that humans and other livestock can’t digest. Unlike humans, pigs and chickens, cattle produce a net gain in protein by converting indigestible plant fiber and other non-protein feeds into high quality beef protein. Beef is Canada’s ultimate plant-based protein.
THE BEEF SECTOR IS WORKING HARDER TO DO BETTER All food production inevitably requires natural resources like water and produces greenhouse gas emissions, but Canada’s beef producers are among the most efficient in the world and are continually improving. Canada’s beef cattle use less water and produce less greenhouse gas per pound (or kilogram) than nearly any other place in the world. Researchers at the University of Manitoba and Agriculture and Agri-Food Canada (AAFC) Lethbridge found that in 2011, producing each pound (or kilogram) of Canadian beef used 17% less water than it did thirty years earlier. Remember the water cycle? Food production is part of that water cycle. All food systems rely on water, but the water is not used up. All water ultimately gets recycled. This team of scientists also found that each pound (or kilogram) of beef produced in 2011 generated 15% less greenhouse gas and 20% less ammonia, and required 29% less breeding stock, 27% fewer harvested cattle and 24% less land compared to 1981. Canada’s beef research community is continually investigating ways to reduce the sector’s environmental 8
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
impact, through improved animal health, feed supplements to reduce greenhouse gas emissions, improved forage and feed varieties that use water more efficiently, byproduct feeds, improving feed efficiency, etc.
CANADIANS BENEFIT FROM INCLUDING BEEF AND OTHER UNPROCESSED FOODS IN THEIR DIET Either intentionally or inadvertently, Canada’s new food guide may have left some Canadians with the impression that plant and animal proteins are nutritionally equivalent, that replacing animal protein with plant protein is simple, or benefits human health. The facts say otherwise. Canada’s per capita beef consumption has declined from its 1976 peak, partly due to misperceptions that Canadian beef contains too much unhealthy fat. In fact, the 74 cooked beef products in the Canadian Nutrient Files average 10% fat (qualifying as “extra lean”), and over half of that fat is unsaturated “healthy” fat. In the meantime, earlier health concerns regarding saturated fat are coming under increased scientific scrutiny. There is increasing concern that Canadians increased consumption of (ultra)processed foods is responsible for Canada’s increased obesity. As Canada’s per capita beef consumption has dropped by more than half (from 9.5 servings per week in 1976 to 4.3 in 2017), Canada’s adult obesity rate doubled (from 14% in 1978 to 28% in 2014).
BEEF HAS UNIQUE NUTRITIONAL BENEFITS Beef is nutrient-dense. Beef protein contains all the amino acids people need, in the right proportions. Beef is also an excellent source of iron (needed for the hemoglobin that carries oxygen in the blood and muscles), zinc (required for hundreds of functions in the body), choline (involved in metabolism, memory, mood and muscle control) and vitamin B12 (essential for nerve and brain health). Nutrients from beef (and other animal proteins) are highly digestible and bioavailable, meaning that the human body can access, absorb, and use these nutrients. Many plant-sourced nutrients are less digestible, absorbable and bioavailable, and some nutrients including B vitamins, zinc, iron and some amino acids (particularly methionine, lysine, and/or leucine) require artificial supplementation in many vegetarian or vegan diets.
BEEF IS IMPORTANT FOR VULNERABLE Beef provides more protein, amino acids, vitamin B12 and zinc iron per calorie than any plant source. This is particularly important for people who need to meet their nutrient requirements from a limited amount of food. These includes pregnant women, infants, the elderly, and athletes.
BEEF AND PLANTS GO BETTER TOGETHER Beef doesn’t contain vitamin A, vitamin C, folate, fiber or some other nutrients. Those nutrients need to come from plants. As omnivores, we need a balanced diet containing both plants and meat to obtain all the nutrients we need. Eating meat also allows humans to better absorb the nutrients available from sources.
MODERATION IN ALL THINGS Over the long run, science reveals both miracle superfoods and nutritional villains to be products of imagination and marketing. Research shows that lean beef is part of a healthy balanced diet, together with a variety of other plant and animal products. Achieving a balanced diet without beef is possible, provided a
sufficiently complex combination of plant proteins and other supplements are available. But by including nutrient-dense beef, achieving a healthy, balanced diet is easy, affordable and delicious.
WE’RE SEEING POSITIVE CHANGE; LET’S KEEP IT THIS WAY The rate of grassland loss in the Great Plains slowed in 2017. However, incentives to produce plant-based alternatives to beef threaten efforts to further curtail grassland cultivation and protect this endangered ecosystem. Projections point to an increase in global beef demand in the coming years. Canada is one of the world’s most environmentally efficient beef producing nations. Displacing beef production from Canada through encouraging a shift to plant-based alternatives will shift beef production to countries with poorer environmental and deforestation practices, increased resource use and emissions, and harm Canadians, the economy and the environment. For more information about the Beef Cattle Research Council, visit www.BeefResearch.ca canadas-ultimate-plant-based-protein/
100TH ISSUE | March/April 2019 2019 CANADIAN MEAT BUSINESS 9 May/June
NAL FOCUSES ON INDUSTRY WITH NEW RVICES IN CANADA
ases services for Canada’s growing and fast-changing
w wing ss nd on F
ety
ly ents in ebsite gate , n, and
IFFA 2019 – WHERE TRADITION MEETS HIGH TECH
accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, For six days,(including IFFA showed the international regulations FSMA), how food science, food packaging, food sector microbiology and fit ISOfor standards. Training modalities meat can get the future. include eLearning, on-site, customized and open enrolment. Additionally, the website includes information From the smart meat factory, packagingabout trends management system registrations for the food, automotive, and food safety, via clean labelling, to the growing environmental, information security, medical devices, expectations meat quality, exhibitors aerospace andon chemical industries,IFFA as well as for Ontario provided answers to the demands of the meatdrinking water programs. processing industry and the butchers’ trade. Visit the new Canadian website at www.nsfcanada.ca to review the food safetythis services capabilities find a list of Canadian experts, learn And against thevideo, background of anfood excellent about upcoming events and global news releases, a question YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read investment climate. an FAQ.
Close to 67,000 visitors from 149 countries around the world attended IFFA 2019. This event hosted 1,039 exhibitors from 49 countries with 120,000 square metres of exhibition space required to showcase industry products and services. “IFFA has once again shown that it is not only one of our longest-established trade fairs but also, above all, the global meeting place for the sector. Seven out of ten visitors came from outside Germany. The mood in the halls, on the exhibition stands and in the aisles was fantastic”, summarised Wolfgang Marzin, President and Chief Executive Officer (CEO) of Messe Frankfurt.
mation
dits
ate n ved tions e ent
“At the same time, IFFA is the family meeting place of the meat-processing sector – the meat industry, the machine manufacturers, the packaging companies, the spice suppliers, the trade and butchers. Many of these companies have been in the hands of the same family for generations and IFFA is where they meet to shape the future every three years.”
range l , nd es ng
This was also confirmed by the results of a visitor poll conducted by Messe Frankfurt: 96 percent of trade visitors gave IFFA a positive rating. On the exhibitor side, too, there was also an outstanding echo with an overall level of satisfaction of 92 percent.
oduct d aging, d
n 10 10
September/October 2017 CANADIAN MEAT BUSINESS March/April | 100TH23 ISSUE CANADIAN MEAT BUSINESS May/June 2019 2019
WELCOME TO THE FUTURE–INNOVATIONS
in which the best up-and-coming butchers from six countries competed against each other.
As the driving force of the sector, digitalisation put the focus on the smart meat factory. Automation and software solutions make production and processes more intelligent.
THE CHALLENGE: A SHORTAGE OF SKILLED PERSONNEL
Food safety continues to be an important subject with the aim being to replace manual activities with automatic processes. In this connection, exhibitors showed, for example, the fully automatic portioning and placement of steaks or cold cuts in packagingmaterials using feeders or industrial robots. Also important in the packaging field are smart solutions to protect meat and meat products whereby the spotlight is on resource conservation and sustainability in terms of the energy efficiency of machines and process chains, as well as climate-neutral packaging. All in all, the outlook for meat-industry suppliers is positive with worldwide meat production expected to rise by five percent per annum until 2027. 85 percent of trade visitors consider the economic outlook to be positive and rate the current situation of the industry as being satisfactory to good. TRADITIONAL BUTCHERS SCORE WITH QUALITY, ORIGINS AND PROCESSING The significance of meat in society remains very high. Traditional butchers score with consumers by offering quality and regional products. Accompanying this trend are new careers, such as meat sommelier. Innovative sales concepts, such as online shops, clever catering ideas and customer communications via the social media are making the butchers’ trade fit for the future.
Machine manufacturers and the butchers’ trade have a challenge in common: a shortage of skilled personnel and trainee problems. Companies must invest more in digitalisation, automation and robot technology to lift the load from employees and simplify all meat-processing stages – such solutions for companies of all sizes and kinds were to be seen at IFFA. This was confirmed by 95 percent of trade visitors who said they were very satisfied with the range of products and services to be seen at the fair. A JOURNEY INTO THE FUTURE: FROM THE BUTCHERS’ TRADE EXHIBITION TO THE WORLD’S LEADING TRADE FAIR IFFA was first held 70 years ago as an exhibition accompanying the conference of the Butchers&#39 Butchers' Association of the US Zone in Frankfurt and has developed over the decades into the world’s leading trade fair for the international meat sector. In 2019, 70 percent of trade visitors came from outside Germany – the top ten foreign visitor nations are the Russian Federation, the Netherlands, Spain, Italy, Poland, China, the Ukraine, the USA, Austria and Australia. Particular growth was registered from Latin America (+31 percent) and East Europe (+15 percent). The next IFFA will be held from 14 to 19 May 2022.
Additionally, artisan skills of the highest order could be seen at the international quality competitions of the German Butchers’ Association (DFV). Moreover, trainees had the opportunity to demonstrate their talents in the international young-butchers competition 100TH ISSUE | March/April 20192019 CANADIAN MEAT BUSINESS 11 May/June 11
barn on these occasions, and submitting it to various authorities for investigation. She also acknowledged taking two animals from the barn. She had been facing charges of break and enter, and mischief to property worth more than $5,000.
FARM PROPERTY INCURSIONS ARE A RISK TO ANIMALS AND FAMILIES
A number of prominent Ontario farm groups strongly disagree with a provincial court’s recent decision to drop charges against a well-known animal rights activist. “This court decision negatively impacts all of Ontario agriculture,” said Keith Currie, President of the Ontario Federation of Agriculture speaking on behalf of numerous farm organizations including Ontario Pork, Farm & Food Care Ontario, Turkey Farmers of Ontario, Egg Farmers of Ontario, Chicken Farmers of Ontario, Ontario Fur Breeders’ Association, Veal Farmers of Ontario and Ontario Sheep Farmers. “Our system of law and order is based on consequences for breaking the law. Without meaningful prosecutions that act as a deterrent to future crimes, activists become bolder in their actions. They’re also fundraising through their illegal activities, thus profiting from breaking the law.” In 2016 and 2017, the activist is alleged to have entered a hog barn near Lucan, Ont., on multiple occasions, without the knowledge of the property owners. In 2018, she admitted in a media interview to recording video inside the 12 12
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
For many farm families in Canada, home and work are uniquely connected. Recent incursions by animal activists onto farms and into buildings clearly defined as private property violate the Trespass to Property Act, RSO 1990. These actions put the security of all involved at risk, including farmers and their families. “For farmers and their families, having their homes and businesses invaded is deeply troubling – whether by large groups of protestors or stealth incursions at night,” said Eric Schwindt, chair of Ontario Pork. “It’s important to note that recent activist attempts to discredit farmers have resulted in no charges against the farms they targeted. For farmers, police and regulators, these incidents tie up vital resources that could be put to better use elsewhere.” Ontario livestock farmers follow high standards of animal care. Those standards of care include biosecurity protocols designed to protect animals from disease. Anyone entering barns or farms, handling animals or moving between barns without following proper biosecurity protocols puts the health of animals, the safety of food and the livelihood of farmers at risk. Farmers work closely with veterinarians, nutrition specialists, regulators and other experts to monitor and maintain the health and safety of their animals and property. There are clear protocols in place with the authorities to investigate and address concerns that are brought forward. Healthy, safe farms are important for the people who live and work there, as well as for animals and consumers. Livestock groups and other farm organizations in Ontario will continue to work with each other, police and government to support the rights of farmers to protect their property from illegal activities. For more information, visit www.FarmFoodCareON.org
geniuses. A&W was the one Canadian company to introduce the product to Canadians a few years ago. Now grocers are drinking the proverbial plantbased Kool-Aid, all at once.
PLANT-BASED BURGERS SIGNAL SHIFT IN CANADIAN GROCERY RETAIL By Sylvain Charlebois It was just a matter of time before we saw Beyond Meat, the California-based company partially owned by Bill Gates*, make a jump from drivethroughs to grocery store shelves. Beyond Meat recently announced that its vegan burger will be available at several large Canadian grocers beginning in May, just in time for BBQ season. It will be interesting to see how grocers will market these products in stores. They could be right next to the bloodied protein version most of us are accustomed to, or somewhere close to the meat counter. It will also be interesting to see how Beyond Meat’s price point compares to regular animal protein products. This could bring some dearly needed top-line growth for desperate grocers who have seen meat counter sales become less than reliable of late. In a matter of days, Canadians will be able to purchase the plant-based burgers almost everywhere: at Co-op Food Stores, IGA, Loblaws, Fresh Street Market, Longos, Metro, Save On Foods, Sobeys, and Whole Foods Market. Beyond Meat’s capacity to deliver, execute, and supply all these outlets at once is nothing less than impressive. Rarely in Canada have we seen a supplier orchestrate such a well-coordinated, timely invasion of a market through careful management and marketing. Such an oligopolistic endorsement of the product, something we rarely see in this country, is making the senior leadership team at A&W look like
A&W’s campaign was indeed a success, but it did bring its share of controversy. At the time, A&W, a Vancouver-based restaurant chain, was criticized as anti-Canadian and anti-meat. Ranchers love to detest A&W these days. Canadians remain quite attached to meat consumption, but an increasing number are reconsidering their health priorities. Other drivers are animal welfare and environmental stewardship, but health appears to be the one determinant influencing a large base of the marketplace. But meat pundits do have a point. Nutritionally, the case for Beyond Meat may be very strong, but it still cannot label itself as a true replacement to the real thing on a BBQ since the Beyond Meat burger is mostly made of peas and soy. Physiological properties, the texture of the product itself, and the way it reacts to the BBQ environment do not replicate true meat, at least not yet. But this may change. Continued on page 14 The company aims to become listed on the Dow Jones, through an IPO worth over $1.2 billion U.S. It is an impressive number, considering how marginalized plant-based dieting was just a few years ago. Beyond Meat, the 10-year old company whose products are now available in more than 27,000 food service outlets worldwide, has taken the world by storm with a decent product which is likely to become a quasi-replica of what most omnivores have enjoyed for years, without the cholesterol and guilt. The company will have the infrastructure, the cash, and the knowledge to channel a different source of protein into the world. This industry leader will also be more transparent than others as it becomes a publicly-traded company. This is a good strategy, given how much the meat industry has been criticized over the years for not being transparent enough. Beyond Meat needs only one recall, once incident, to kill its momentum - no pun intended. A more open enterprise, though, will 100TH ISSUE | March/April 20192019 CANADIAN MEAT BUSINESS 13 13 May/June
recall, once incident, to kill its momentum - no pun intended. A more open enterprise, though, will bring less suspicion, which is desirable, especially for a company like Beyond Meat. It does make us wonder, though, why Beyond Meat is not Canadian. It’s an American product, fostered and propelled by American entrepreneurial spirits - very bright spirits, albeit, but American nonetheless. Our way of thinking regarding food innovation suppresses any chance for a company to come up with a project like this. There are glimmers of hope, however, as startups are erupting all over the place and will bring a proper dosage of innovation, in due course. What will help these companies is how the plantbased market will evolve and mature. Not all vegetable proteins are created equal. Consumers who look to reduce their meat consumption are often concerned with protein content and getting enough of it. Canadian startups - even perhaps Maple Leaf Foods, which just announced a new meatless plant built in Indiana - can capitalize on the hyper-segmentation of the plant-based narrative over time.
The company aims to become listed on the Dow Jones, through an IPO worth over $1.2 billion U.S. It is an impressive number, considering how marginalized plant-based dieting was just a few years ago. Beyond Meat, the 10-year old company whose products are now available in more than 27,000 food service outlets worldwide, has taken the world by storm with a decent product which is likely to become a quasi-replica of what most omnivores have enjoyed for years, without the cholesterol and guilt. The company will have the infrastructure, the cash, and the knowledge to channel a different source of protein into the world. This industry leader will also be more transparent than others as it becomes a publicly-traded company. This is a good strategy, given how much the meat industry has been criticized over the years for not being transparent enough. Beyond Meat needs only one 14
CANADIAN MEAT BUSINESS
March/April May/June 2019 2019
| 100TH ISSUE
For a while, Beyond Meat will own this space, along with other firms like Impossible Foods. Beyond Meat does have its flaws, such as having soy protein isolates, a fact that has raised some health concerns, according to a study recently conducted by Harvard. Opportunities will present themselves for Canadian companies to consider, but they need to be ready. Sylvain Charlebois is Dean of the Faculty of Management at Dalhousie University in Halifax. Also at Dalhousie, he is Professor in food distribution and policy in the Faculty of Agriculture. His research has been featured in a number of newspapers, including The Economist, the New York Times, the Boston Globe, the Wall Street Journal, Foreign Affairs, the Globe & Mail, the National Post and the Toronto Star. Follow him on twitter @scharleb. Courtesy of Retail Insider
100TH ISSUE | March/April 2019
15
FEDS SUPPORT A STRONG AND INNOVATIVE CANADIAN PORK INDUSTRY - ANNOUNCE $10 MILLION IN SUPPORT OF CONESTOGA MEATS Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, and Raj Saini, Member of Parliament (Kitchener Centre) have announced a repayable contribution of up to $10 million to Conestoga Meats under the Canadian Agricultural Partnership, AgriInnovate program during a recent visit to their facility in Breslua, Ontario. This funding will increase the Canadian pork industry’s productivity, helping the sector to meet growing domestic and global demands for their high-quality, sustainable products. “Our government is proud to be working with the Canadian pork industry to build a stronger, more innovative sector. This investment will help the pork sector increase its productivity and capacity to meet growing consumer demand, as well as improve on-farm safety, while fostering continued economic growth and create jobs for our middleclass,” stated Minister Bibeau. The investment will help the company upgrade its facilities and install a state-of-the art cooling system developed at the University of Guelph. This unique, custom built system will allow for more controlled temperature reduction. The 16
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
technology will also reduce processing time and improve product shelf life for fresh pork. These improvements will help increase production and significantly expand export opportunities in Japan and across Asia. Exporting to these areas requires advance capabilities to improve shelf life for chilled pork. The investment should help Conestoga Meats take advantage of the Trans-Pacific Partnership trade agreement between Canada and 10 other countries in the Asia-Pacific region, including Australia, Japan and Mexico. Arnold Drung, President of Conestoga Meats, said “Conestoga Meats and its farmer-owners are very appreciative of the interest free loan that the Government of Canada is making to our business. This is helping us enhance our production capabilities which will allow Conestoga to export more product and create additional jobs in our community.” Conestoga Meats is about to embark on its sixth expansion phase. It currently processes about 37,000 hogs every week and employs more than 1,000 people.
“Last year, Conestoga exported to over 29 countries and exports totalled over 50 per cent of our volume,” Drung said. In 2018, Canadian pork exports were valued at more than $4 billion, putting it in the top three worldwide. But competition is fierce, Drung added, with the United States, Brazil and the European Union all fighting for a share of the market. “As a company we must continue to do things better in order to compete in this environment,” Drung said. Earlier this year, the federal government also announced more than $6 million for pork producers through the Canadian Agricultural Partnership program.
QUICK FACTS • In 2018, Canada’s pork sector exports were valued at $4 billion, making Canada a topthree exporter of pork in the world.
Of that, $3.8 million will help launch food safety programs as well as improve traceability and animal care compliance; $1.2 million will help expand and promote the Canadian pork market; and $1.1 million will fund science to improve production efficiency. Investment and interest in the Pacific states has been spurred on by the recent implementation this year of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The free trade agreement, which counts Japan amongst its 11 members, is expected by the federal government to offer new opportunities for Canadian agricultural products in the global economy. “The expanded facility will also help producers take advantage of the trade agreement we have concluded with Europe and the countries on the Trans-Pacific Partnership,” noted Bibeau. “The CPTPP will bring Canada’s pork industry at the front of the line in key markets like Japan.” Conestoga Meats is a fully farmer-owned cooperative, and the second largest pork producer in Ontario.
• 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. • This investment was made under the AgriInnovate Program, a five-year (2018-2023), up to $128 million initiative under the new Canadian Agricultural Partnership that aims to accelerate commercialization, adoption and/ or demonstration of innovative agri-based products, technologies, processes or services that increase agri-sector competitiveness and sustainability. • Conestoga Meats is a southwestern Ontario pork processing facility that produces, processes and packages fresh, chilled and frozen pork products. Conestoga Meats is well established in both domestic and international markets, with $450 million in sales for 2017. 100TH ISSUE | March/April 20192019 CANADIAN MEAT BUSINESS 17 May/June 17
THE BEST DEFENSE IS A STRONG OFFENSE PROMOTING THE HEALTH BENEFITS OF MEAT AND POULTRY By Ronnie P. Cons
Red meat is often wrongly portrayed as being unhealthy. Even chicken has been getting attacked by some in the media as unhealthy or not environmentally friendly. Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families. They are also aware that a lot of false information is out there and as such, are open to scientific facts that can correct their misconceptions. 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 a direct impact on sales: Start by displaying instore posters promoting the nutritional value of meat. They should be innovative, eye catching and be designed to specifically contradict any meat myths. The comments should all be literature based quoting research papers or MDs for maximum effect. Various posters should be made - each with a brief but powerful message covering one theme. HEIGHTENED OCCURRENCE OF FOOD TODAY’S
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’. 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 chronic diseases.
METAL DETECTOR SPECIALIST ADDRESSES MEAT, POULTRY 4. Power Your Muscle Growth with Meat! The protein in meat helps build and repair body tissues. AND FISH PROCESSING ALLERGEN Muscles RISKS are made of protein. That is why athletes who are building muscle strength increase their meat consumption. The protein and zinc found in meat are important for muscle ALLERGIES AND INTOLERANCES ARE DIFFICULT TO growth and repair.
IGNORE. CHANGING LIFESTYLES, INCREASED PROTECTION FROM GERMS, AND CERTAIN ‘HEALTHY’ Posters can convey the following healthy meat fact 5. Meat is the Complete Protein! messages: OR ‘EXOTIC’ EATING TRENDS COULD ALL BE CONTRIBUTING TO IN INTOLERANCES ORyour Meat contains all THE of theRISE nine essential amino acids that 1.ALLERGIES. Let’s IRON out the Truth on Meat! body cannot make by itself. Say ‘hello’ to histidine, leucine, “You would need to eat a massive amount of spinach to isoleucine, lycine, methionine, phenylalanine, tryptophan, equal (the iron content) in afish steak,” says Christopher Golden, For meat, poultry and processing factories, cleaningand procedures minimize hygiene threonine, valine. That and is why meat is called a complete an ecologist and epidemiologist at Harvard University in protein. having a robust cross-contamination and cross challenges at this critical point in the line, both Cambridge, Massachusetts. (As quoted by nature.com in the 6. Eat Meat for a Healthy Heart! contact strategy is paramount for allergens and food-borne pathogens. Fortress article ‘Brain food- clever eating’.) and equipment Meat contains lots of the B vitamins needed for the manufacturers are responding to offer smarter, Technology explores the rationale behind this For a woman to receive her recommended daily intake of 18 production of hormones, red blood cells and for the proper mg of flexible iron, she would just 300 grams of cooked more ways need for processors adapt theirbovine functioning growing issue howsystem. factories can address the of yourand nervous rising risks. Say ‘hello’ to niacin, folic acid, thiamine, biotin, panthothenic acid, vitamin B12 and vitamin B6. They are all found in meat.
ALLERGIES THE LEADING OF not The line that ‘the bestSIXTH defense is a good CAUSE offense’ does only apply to ILLNESS sports. It also applies to STATES countering negative CHRONIC IN UNITED meat health myths. Implementing an instore ‘Healthy Meat Facts’ nutritional campaign to set the record straight on meat Data confirms that the challenges aroundbyallergies and poultry. It is a good way to go on the offensive using education customers in Northyour America areand realincreasing and on your the sales.. rise. The number of people with food allergies in the U.S. is greater than the entire populations of New York City, Los Angeles and Chicago combined.
Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of meat and poultry. He can be reached at RCons@CCpacking.com.
22 CANADIAN MEAT BUSINESS September/October 2017
18 18
CANADIAN MEAT BUSINESS
March/April May/June 2019 2019
| 100TH ISSUE
meatbusiness.ca
Approximately 15 million people in DF:have I don’t thinkallergies, being on the island the U.S. food with has really impacted us negatively one the Centers for Disease Control & way or the other. We’ve traveled a lot, Prevention reporting that between met a lot of other farmers and livestock 1997-1999 and 20092011, producers in other parts offood Canada, and all seem to have the same issues allergywe prevalence among children and same increased by 50concerns. percent. CMB: I understand that your farm the first in Atlantic Canada to be While was severe, life-threatening foodinvolved in the TESA program.
related allergic reactions are still DF: Yes, I think we were the first farm relatively uncommon, studies suggest east of Ontario as far as I understand. that more than 200,000 make a trip I’m not sure why the eastern to the associations Emergencywouldn’t Room as a result of have previously food allergies. nominated That’s anybodyapproximately because there are someone andevery manyevery farms 2.5 hereminutes, on PEI doing bit as much as we are as for to attain a an increase of 265 percent high level ofbetween sustainability. Anyway, hospitalizations 1997-2007, we were very surprised when the PEI according to the Centers for Disease Cattleman’s Association nominated our Control. farm. CMB: And then you were attending the
IS Canadian YOUR FACTORY MACHINERY Beef conference in Calgary SANITARY? and you won.
DF: Yeah! That was a very nice moment
For theforfood andI don’t drinklike supply us. But to usechain, the reducing the of consumer exposure word winrisk actually. However, being recognized for with our commitment was to allergens starts the greatest a real taken honour.in If you to know care being the want sourcing all the truth, it was a pretty humbling ingredients, auditing suppliers, and experience. As I said to CBC when they so on. phoned But themebenefits of carefully after the conference, I was managing allergen content be it. just floored, really couldn’tcan believe nullified at the factory stage by crossCMB: So now that you have been contamination. risks here recognized,The do you think thatare will especially given that only tiny drawacute more attention and garner more nominations out of Atlantic Canada amounts of an allergen can trigger a forward? seriousgoing reaction in a sufferer. For this DF: Absolutely. We’ve gottenwill, a lot reason, larger manufacturers of good press highlighting the island where possible, segregate production cattle industry. I’m positive you’ll see areas handling known allergens, such more farms in our neck of the woods as nutsnominated and seafood. next year. And I have to give the Canadian Cattleman’s Association
recognition for choosing athis farmoption from For smaller manufacturers, Prince Edward Island. We are small may not be available. In this case, players inmust the national industry the emphasis fall onbeef hygiene and I think it was a real credit to their and good process practices. In fact, organization to recognize us. They wheretreated allergens may be present andit all the nominees royally and there is a risk contamination being was a realofclass act. It was a wonderful passedexperience. from batch to batch, cleaning of meat, poultry and fish inspection equipment must go well beyond Continued on page 20
100TH ISSUE | March/April 2019 meatbusiness.ca
19
September/October 2017 CANADIAN MEAT BUSINESS 17
IDENTIFYING WEAKER HYGIENE LINKS normal hygienic requirements. Even where heat processing is involved, allergens can still survive high temperatures. Overall, a significant number of meat and poultry plants are using a wider range of dry and liquid ingredients as the trend towards more prepared or part-prepared products and combinations continue. These options can take the form of sauces, mustards and marinades, herb and spice blends or other foods twinned with the main meat or poultry product. As a result, manufacturers have to be more circumspect about contaminant detection. Equipment cleaning protocols should be formalized and included in staff training. Every cleaning process needs to be verified and documented. As part of a validation process, regular tests, including swabs of Critical Control Points, should be scheduled to ensure these areas are allergen-free. Product residues, potentially including allergens, can be especially troublesome in gravity metal detection systems for powders and particulates. This might be the case in factories using herbs, spices or breadcrumbs for coating or seasoning. But, liquids, semi-liquids and slurries in pipeline systems can pose problems of their own. Sauces and marinades could potentially contain mustard, sesame, nuts or soy, for instance. Hygiene processes must be thorough in both settings. The same issue might be true of a line filling fresh soups into pots or cartons, where recipes, including fish and seafood, alternate with others that avoid these ingredients.
20
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
Efficient product changeovers are critical to productivity. For factory managers facing regular changeovers, it is essential for processing, filling and packing lines to be designed to facilitate both quick and deep cleaning. When it comes to specifying in-process metal detection, this means that contact surfaces on conveyor, pipeline and gravity systems should be as smooth and crevice-free as possible. This is partly to ensure that no traces of product, allergens or bacteria are left, but also to reduce the risk of cleaning agents not being fully rinsed away. High-pressure cleaning may well be deployed for fast, effective washdown, and the casing of the metal detector should be sufficiently robust to withstand this. When selecting a system, care should be taken to identify equipment with an ingress protection (IP) rating appropriate to the washdown regime being applied. In addition to these general criteria for the whole system, special attention should be paid to the reject unit. Ideally, this will be detachable (easily detached, but quickly and securely reattached, too) to allow thorough cleaning. Of course, there are many other potential sources of cross-contamination in a meat and poultry processing factory. Good Manufacturing Practice (GMP) provides plenty of guidance on the hygiene and behavior of personnel. But the potential role of operators in spreading allergens by moving ingredients around the floor in unsealed containers, running allergenic products at the start of the shift rather than the end, not changing or cleaning protective equipment, for example, needs to be driven home where the risks are especially high.
Unlike labeling anomalies, which will probably show up as soon as product reaches the retailer, allergen content or harmful pathogens (just like undetected metal contamination) that haven’t been notified, will usually only surface once items are on-shelf and in the hands of the consumer. At that point, product recall costs are much higher but can, in any case, be dwarfed by the massive but less immediately tangible costs of damage to the manufacturer’s brand reputation.
With no obtrusive support frame and no external boxes to accommodate electronics, and as a result of its reduced surface area and minimal use of fasteners, there are fewer places where meat residue, water ingress and bacteria can build up and potentially get embedded in pipes, nooks and crannies.
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
Additionally, Fortress has created a Gravity metal detector featuring a quick release retractable reject unit that can be placed on a carriage for fast removal and effective cleaning away from the line. NEW MACHINE DEVELOPMENTS TO CURB CROSS Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility Designed to inspect freefalling products in dry, CONTAMINATION By Amy Reid, Peace Arch News granular and bulk form, food processing operatives To directly address the requirement for thorough, gain access to working socan as toquickly not emitdisconnect, odours. And while there is an operational A federally licensed beef processing facility is in the works 6,000-square-foot abattoir on the property now, can in Surrey, BC. parts, clean and slot back into place,it’shelping to verifiable and efficient cleaning in factories to only process a limited number of cattle. “There’s new of building coming forward,Fortress a new abattoir, I prevent high risk air borne allergens, for example combat thearisk contamination, recently Chris is general manager of Meadow Valley Meats, think that’s theIP69K-rated French pronunciation of slaughterhouse,” nutLes dust, lactose or cereals containing gluten, unveiled a new and USDA compliant the company behind the project. Meadow Valley Meats is said Councillor Mike Starchuk. “So Surrey will have a building up in and Gravity unit. Meatnewer Pump Pipeline. Especially suitable for sausage seeking a Canadian Food around Inspectionthe Agency license for facility with a better capacity so people will have and meat patty manufacturers, as well as food the proposed abattoir, to become a federally registered the ability to not have to ship an animal to Alberta to have meat establishment expand the detection operation. This would it processed. applications have gone through the Purchasing theand best metal equipment for factories using The pastes and meat sauces in ready allow the meat products to be transported beyond B.C.’s Agricultural and Food Sustainability Advisory Committee.” the job may constitute only one portion of a much meals, the compact Meat Pump Pipeline Metal boundaries. The facility is proposed on a 25-acre property within the bigger picture. Yet, it provides evidence that your Detector is fitted to a mobile frame. Featuring “Our focus is on trying to bring a more efficient, sustainable Agricultural Land Reserve at 5175 184th St. The planned company is the taking the threat electric poweredfoot height adjustment local product to market, realizing wecontamination can do that now from 30,000-square abattoir in Cloverdale controlled would processvia up inallergens a very limited sense,” said Les. “I caution people to 100 the headunit of cattle per day. and pathogens seriously and when will make a the HMI, is quick to manoeuver around talking to them and they say, ‘What a big plant, that’s going real and valuable contribution to reducing those and connect toaother production According to city report, that would vacuums, make it largerand than to go allow you to go mainstream.’ Well, yes, if you look anyitother processing facility in B.C.. But it would be risks. makes easier for sanitation employees tostill roll in the context of B.C., but this is still a very niche plant by industry standards, compared to the largest meat out, small dismantle and clean to prevent bacteria and we’ll serve a niche industry for producers and for the processing plants in Alberta that process 3,000 heads of For more information, contact Christina Ducey market. It’s certainly not going to be a monstrosity of a plant accumulations. cattle per day. The proposed facility would be fully enclosed and designed
meatbusiness.ca
but at it’ll cducey@fortresstechnology.com be a big upgrade from the site currently.”
or visit
www.fortresstechnology.com Continued on page 32
September/October 2017 CANADIAN MEAT BUSINESS 31
100TH ISSUE | March/April 2019 May/June 2019 CANADIAN MEAT BUSINESS 2121
WHAT AFRICAN SWINE FEVER MEANS FOR CANADA’S PORK INDUSTRY FARMERS ARE OPTIMISTIC ABOUT RISING PORK PRICES BUT WORRY ABOUT DISEASE MAKING ITS WAY TO CANADA By Paula Duhatschek – CBC News Canadian pork producers say they’re watching closely as African swine fever (ASF) spreads through China, wiping out large numbers of the country’s pig population and bumping up demand for North American pork. ASF is a highly infectious viral disease that causes fever, haemorrhaging and death in pigs. In China, an outbreak was detected in August 2018 and has since caused massive numbers of pig deaths, some due to the disease and some due to preventive culling, according to Bob Friendship, who studies population medicine as a professor at the Ontario Veterinary College. About half of global pork consumption happens in China, which means any disruption in the country’s pig population has the power to create significant demand for alternate sources of pork, Friendship said. “Right now, it appears that China has a dramatic shortage of pork, and it’s a huge market, so it’s going to create a worldwide shortage of pork,” Friendship said. “It would seem that China is beginning to import large amounts of pork, and over the last month, the North American pig prices have dramatically increased.”
BUMP IN CANADIAN PORK PRICES As China ups its import levels, the markets have seemingly changed overnight, according to Eric Schwindt, chair of Ontario Pork, an organization that represents pork producers. In the last year, the price of pork has swung from a low of $1.20 a kilogram up to around $1.90 a kilogram now — a difference that works out to almost $80 a hog, Schwindt said. “That’s the difference between losing $50 and making $30,” said Schwindt, who runs a farm of about 12,000 pigs near Elmira, Ont. Schwindt said the price bump comes at a welcome time for Ontario producers, who have been consistently losing money on pork over the past year. “There’s been a lot of meat in general in North America, and with the tariffs imposed on U.S. pork, that negatively affects Canadian prices,” said Schwindt. “This winter, I was getting phone calls from people wondering how they were going to stay in the business longer term — if it wasn’t sustainable, what choices they were going to make.” Continued on page 24
22
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
For meat, poultry and fish processing factories, having a robust cross-contamination and cross contact strategy is paramount and equipment manufacturers are responding to offer smarter, more flexible ways for processors adapt their cleaning procedures and minimize hygiene challenges at this critical point in the line, both for allergens and food-borne pathogens. Fortress Technology explores the rationale behind this growing issue and how factories can address the rising risks. ALLERGIES THE SIXTH LEADING CAUSE OF CHRONIC ILLNESS IN UNITED STATES Data confirms that the challenges around allergies in North America are real and on the rise. The number of people with food allergies in the U.S. is greater than the entire populations of New York City, Los Angeles and Chicago combined. Approximately 15 million people in the U.S. have food allergies, with the Centers for Disease Control & Prevention reporting that between 1997-1999 and 2009- 2011, food allergy prevalence among children increased by 50 percent. While severe, life-threatening food-related allergic reactions are still relatively uncommon, studies suggest that more than 200,000 make a trip to the Emergency Room as a result of food allergies. That’s approximately someone every 2.5 minutes, and an increase of 265 percent for hospitalizations between 1997-2007, according to the Centers for Disease Control. IS YOUR FACTORY MACHINERY SANITARY? For the food and drink supply chain, reducing the risk of consumer exposure to allergens starts with the greatest care being taken in the sourcing all ingredients, auditing suppliers, and so on. But the benefits of carefully managing allergen content can be nullified at the factory stage by cross-contamination. The risks here are especially acute given that only tiny amounts of an allergen can trigger a serious reaction in a sufferer. For this reason, larger manufacturers will, where possible, segregate production areas handling known allergens, such as nuts and seafood. For smaller manufacturers, this option may not be available. In this case, the emphasis must fall on hygiene and good process practices. In fact, where allergens may be present and there is a risk of contamination being passed from batch to batch, cleaning of meat, poultry and fish inspection equipment must go well beyond normal hygienic requirements. Even where heat processing is involved, allergens can still survive high temperatures. Overall, a significant number of meat and poultry plants are using a wider range of dry and liquid ingredients as the trend towards more prepared or part-prepared products and combinations continue. These options can take the form of sauces, mustards and marinades, herb and spice blends or other foods twinned with the main meat or poultry product. As a result, manufacturers have to be more circumspect about contaminant detection. Equipment cleaning protocols should be formalized and included in staff training. Every cleaning process needs to be verified and documented. As part of a validation process, regular tests, including swabs of Critical Control Points, should be scheduled to ensure these areas are allergen-free. Product residues, potentially including allergens, can be especially troublesome in gravity metal detection systems for powders and particulates. This might be the case in factories using herbs, spices or breadcrumbs for coating or seasoning. 100TH ISSUE | March/April 2019
But, liquids, semi-liquids and slurries in pipeline systems can pose problems of their own. Sauces and
23
Of course, some costs will be passed onto the consumer and reflected in the grocery store, with higher prices expected for meat in general and pork in particular, Friendship said. CANADIANS SHOULD BE FAIRLY WORRIED Schwindt said Ontario farmers are looking forward to stronger pork prices lasting around two to three years, and using the time to shore up their balance sheets. Still, he said that is tempered by dread at what could happen if African swine fever were to make its way to Canada. “It could be devastating for us as producers,” he said. The likelihood of that happening is low, Friendship said, but Canadians should still be “fairly worried” because of how damaging it could be for the pork industry. “If it was to get here, it’s disastrous,” said Friendship. “It would close all the borders, it would destroy our swine industry.” Friendship said Canada has a strong track record of preventing other foreign diseases from entering the country, such as foot and mouth disease. The federal government has also announced some new initiatives to prevent ASF from entering the country, including a commitment of up to $31 million to install more sniffer dogs at Canadian airports to detect illegal meat products. Ottawa will also host an international forum next week for members of the industry to discuss ways of preventing the spread of infection. “I think the chance of getting it is quite low, but the consequences are just terrible so that keeps people up at night I think,” he said. Canada is the world’s third-largest exporter of pork, according to Agriculture and Agri-Food Canada. Provincially, Ontario Pork says the industry generates 14,274 full-time equivalent jobs. Courtesy of CBC News
24 24
CANADIAN MEAT BUSINESS
March/April May/June 2019 2019
| 100TH ISSUE
the Canadian Federation of Independent Business (CFIB), I figured I needed to share with our government six ways small business owners (and their income) are different from employees. 1. Risk. Business owners take on huge risks in order to earn a living, and when they do, the entire family is involved. Many business owners empty their savings, remortgage their homes and borrow from friends, family and banks to get their business going. Once it does, they often rely on family members not only for support, but to actively contribute to the business’s success. This is particularly true on Canadian farms, where each family member plays a vital role, often from a young age. If the business fails, and many do, the whole family is often set back for years. 2. Getting paid last. A small business owner gets paid AFTER everyone else, including employees, suppliers, and of course, governments. I’ve heard thousands of stories of business owners taking home next to nothing in tough times in order to ensure they could pay and After an onto investment ofemployees over $120and million and hang their valued their business.
me differently. In fact, Statistics Canada data shows that employers are about four times more likely to be earning less than $40,000 than more than $250,000. To fight these latest proposals, CFIB is a proud member of the Coalition for Small Business Tax Fairness, a unified voice of 50 organizations representing hundreds of thousands of businesses from all sectors of the economy. The Coalition recently sent Finance Minister Bill Morneau a letter asking the government to take the proposals off the table and instead meet with the business community to address the shortcomings in tax policy affecting private corporations. There’s still time for you to have your say. Consultations on the proposal remain open until October 2nd, 2017. Contact your local MP and let them know what the reality is for Canadian small business owners.
Here’s hoping the federal government recognizes the OLYMEL’S NEW PLANT IN YAMACHICHE, QC of business important differences between the income
two years ofhours. intensive work that owner modernized, 3. Working Any agri-business will tell you completely renovated and doubled the area of than that the nine-to-five doesn’t apply to the farm. More per processing cent of Canada’s small business owners work 50 the 40 pork plant of ATRAHAN, an Olymel hours or more per week – compared to only six per cent division in Yamachiche, 351 Lucyporc employees of employees. joined the 556 Olymel employees in late April. 4. Benefits. Many employees—particularly those in government—enjoy health, dental and other benefits Olymel’s new pork slaughterhouse and cutting courtesy of their employers. Again, the business owner plant will employ a total ofofthe more thanto1,000 depends on the success business fund any benefits or their own family of may need. people andthey is the culmination the project
owners and employees and abandons these proposals that will harm our entrepreneurs and our economy.
maintaining production during the renovation This column was first published in the Huffington and modernization work, recruiting over 300 Post on August 25, 2017. new employees,Danand merging seniority lists to Kelly is President of the Canadian Federation of allow the United Food Commercial Workers Independentand Business (CFIB). In this capacity, Dan is the lead spokesman and advocate for the views Union (UFCW) Local 1991P to integrate Olymel, of CFIB’s 109,000 small-and medium-sized member Lucyporc and new employees under a long-term businesses across Canada, including 7,200 agribusiness members. Follow on Twitter @CFIB employment contract expiring inDan 2029. and learn more about CFIB at www.cfib.ca.
Continued on page 26
announced in August 2016 as of the 5. Paperwork and red tape. Thinkpart you have struggles with thepartnership Canada Revenue AgencyOlymel or otherand business between government departments? Consider the massive Groupe Robitaille. The Lucyporc plant, which number of rules, regulations and agencies a small produces Nagano pork and has been established business has to deal with. Want to start a bicycle in Yamachiche since 2000,You will operations repair shop in Winnipeg? willcease need to register in late April. with up to 44 different agencies before you start. A Halifax dentist needs up to 45 permits to earn a living. to existing Olymel and Lucyporc addition
In 6. Retirement. This is a big one.of While employees, the completion thisgovernment project has workers have gold-plated pensions often starting at created more than 300 new jobs, making Olymel age 55, and many employed Canadians have one of the largest employers in the region. The employer-matched RRSPs, the small business owner newisplant, which focus the production counting on thewill value of theon business—including of value-added products, be officially his or any investments owned bywill the corporation—for her retirement. Succession is alreadyismajor inaugurated later this year.planning The company issue for small business owners, especially whenwill it expanding its activities to two shifts, which comes to the agri-business community. When it is allow all newly grouped employees to familiarize easier and more lucrative to sell to a third party than it themselves the facility has been is to pass with your business downthat to the next generation, completely redesigned it threatens the livelihoodand andrefurbished very existenceto of better Canada’s farms, something is seriously wrong. meet marketfamily needs. Sadly, there are lots of Canadians (and, it appears, many
politicians) thathas hanging out a shingle to say Since 2016,who thisbelieve project successfully you’re in business is a licence to print money. I represent addressed several challenges, including 109,000 entrepreneurs across every sector, who tell meatbusiness.ca
September/October 20172019 CANADIAN MEATMEAT BUSINESS 21 2525 May/June 2019 CANADIAN BUSINESS 100TH ISSUE | March/April
HIGHLIGHTS • An investment of over $120 million that required two years of work and generated employment for over 200 people during the construction, in addition to involving more than 130 specialized contractors and sub-contractors; • The pouring of 12,317 m3 of concrete, the use of 695 tonnes of reinforced steel, the laying of 500 km of electrical cables and installation of 2,000 light fixtures, as well as the installation of 1,693 pieces of equipment for the construction of the new Olymel plant; • A new plant area of 21,715 m2, twice the size of the original plant on the 86,000 m2 site; • Building of a 6 km water pipe for the supply of drinking water; • Installation of a new water treatment system with a capacity of up to 2,100 m3/day in a new building; • Preservation of a wetland of more than 4,500 m2 in its natural state; • Expansion and installation of new carcass refrigerators; • Expansion of the hog intake area and weather shelters for increased animal welfare; • Building of a new CO2 slaughter system for hog anaesthesia to reduce animal stress, improve meat quality and provide a better working environment. Labour Force • Creation of more than 300 new jobs for a total of more than 1,000 employees; • Implementation of a second shift; 26
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
• Expansion of office spaces and common areas reserved for employees, including the addition of 455 cafeteria spaces and 850 locker spaces; • Doubling of parking areas. PRODUCTION CAPACITY • Gradual increase in slaughter capacity from 18,000 to 40,000 hogs/week and doubling of production volume; • Modernization of production systems using the latest generation technologies, in particular through the automation of certain operations and the implementation of high-performance Cryovac vacuum packaging systems; • Expansion of the shipping room and installation of 4 new loading docks for a new total of 10; • Production and marketing of value-added and niche products, such as Nagano pork or chilled pork products with a 60-day shelf life; • Marketing: 60% of the production volume is destined for export to 50 countries. Olymel is Canada’s leader in the production, processing and distribution of pork and poultry meats. The company employs over 13,000 persons and has production and processing facilities in Quebec, Ontario, Alberta, New Brunswickand Saskatchewan. Olymel exports more than a third of its total sales to 65 countries. Its annual sales are on the order of $3.5 billion. For more information about the company, visit www.olymel.ca
100TH ISSUE | March/April 2019
27
FCC PLEDGES $200,000 TO OLDS COLLEGE To help Olds College create its AgExpert Data Lab, Farm Credit Canada (FCC) has committed $200,000 to the College’s Smart Farm. The funding commitment will be over a span of four years. “The Smart Ag Innovation Centre will be the hub for digital ag in Canada and FCC is thrilled to be a partner through the AgExpert Data Lab,” says Fred Wall, FCC’s vice-president of marketing.
THAI CPF TO ACQUIRE CANADIAN PORK PRODUCER HYLIFE Charoen Pokphand Foods Pcl (CPF), Thailand’s largest agriculture conglomerate, said on Monday it would acquire Canadian pork producer HyLife Investments for C$498 million ($372.7 million) to expand its North American business.
“The lab will teach the next generation of farmers how to collect and properly manage farm data. That knowledge helps producers make informed decisions, driving both individual and industry success.”
The acquisition would make CPF a 50.1 percent owner of HyLife, with the remainder held by its Japanese partner, Itochu Corp, CPF said in a statement. CPF said the investment would give it access to a pork production base and opportunity to expand in North America and premium markets such as Japan.
The lab, located on campus inside the Smart Ag Innovation Centre, is a technologically advanced workspace, available for students, instructors, industry partners and the Smart Farm Integration Team to meet, collaborate and learn.
CPF, which has livestock, aquaculture, animal feed, and restaurants businesses across 17 countries, is owned by Thailand’s richest man, Dhanin Chearavanont. Dhanin’s other businesses span convenience stores, insurance and telecommunications. CPF’s purchase of HyLife will improve its product portfolio of cooked pork products for the Chinese market and expand its presence in the United States. HyLife, which has processing plants in Canada and Mexico, has businesses including feed manufacturing, hog production and distribution of pork products. CPF previously said that it expects up to 10 percent sales growth in 2019 and targets sales of over $18.2 billion over the next five years. The purchase is the latest overseas acquisition for CPF, which bought U.S. frozen-food producer Bellisio Parent LLC for $1 billion in 2016. 28 28
CANADIAN MEAT BUSINESS
March/April May/June 2019 2019
| 100TH ISSUE
“Thanks to this investment from FCC, we continue to develop our Olds College Smart Farm,” says Olds College president, Stuart Cullum. “The AgExpert Data Lab brings together data from our agriculture operation, allowing us to analyze and demonstrate innovative technology and practices for entrepreneurs, companies and producers and for student learning.” In addition to the creation of the AgExpert Data Lab, the donation will help fund the Olds College Smart Farm. Its cutting edge technology to provide a hands-on learning environment for students of the College and an opportunity for industry to develop, integrate and test new agriculture technology and practices. Current Bachelor of Applied Science, Agribusiness Degree student, Martina Holtkamp says she’s excited about the investment as she’s able to see how technology is evolving in the agriculture industry.
WHY YOUR LOCAL SMALL BUSINESS FEELS BURNED BY THE CARBON TAX The carbon tax rebate coming your way after filing your 2018 income taxes. You know, the one that is supposed to be larger than the amount you actually pay toward the new federal carbon backstop that kicks in on April 1. While many of us may have a healthy skepticism about whether the rebate will actually cover all of our new direct and indirect costs of the carbon tax, consider the situation facing the half-million small businesses spread across the four provinces. If Canadian families get a rebate that is bigger than the amount they pay, guess who is picking up the tab? That’s right — the neighbourhood corner store, your dry cleaner, farmers, and the small manufacturers and processors. In fact, Canadian small- and medium-sized companies, along with municipalities, universities, school boards and hospitals, will pay nearly 50 per cent of the billions in new carbon tax revenues, while they will be eligible for just seven per cent back in grants and rebates over the next five years. This accounts for a promised $1.5 billion over the next five years, though details on how that will be administered have not yet been released, adding to small business’s frustration. What’s worse is that while large companies have their own pricing schemes and output-based subsidies, many of them will have a huge portion of their emissions exempted from the carbon tax.
through rebates. The government has justified the disparity in allocated revenues by saying that small businesses can just pass the extra costs on to their consumers. But any small business owner can tell you that it’s seldom a simple matter of raising prices. In fact, in a recent Canadian Federation of Independent Business (CFIB) survey, 80 per cent of firms said they would be able to pass less than a quarter of the cost along to customers, with over half saying they expect to be able to pass on zero in the short to medium-term. Instead, many will be forced to absorb a majority of the new costs, limiting their ability to hire new staff, raise wages or invest in new technology. The new carbon tax is just one of several cost increases that small businesses are being asked to absorb. They are already dealing with five consecutive years of Canada Pension Plan increases that started in January. Once the rates are fully raised, employers will be paying up to $1,100 more per employee per year and double that for themselves. There is only so much that a business can pass to its customers before it prices itself out of its own market. Businesses that export to countries that don’t have a carbon tax, for example, will be at an even greater disadvantage. Similarly, our bricks-andmortar retailers are facing ever-greater competition from large U.S. online retailers who don’t have a new carbon tax, such as Amazon or eBay.
Households will be paying the other 50 per cent of the tax, but get back 90 per cent of the revenues May/June 100TH ISSUE | March/April 20192019 CANADIAN MEAT BUSINESS 29 29
done a poor job of communicating the mess of new rules about exemptions and registrations that the tax has created. Some businesses could face a $2,000 fine if they have not registered with the CRA by April 1, and many may lack the information they need to do so.
And we all know, our producers also compete internationally with countries that do not have a carbon tax. As price takers they cannot pass on the cost of the carbon tax when they sell their products. While there will be some offsets for farmers for farm fuel, they will still face many indirect increases in their input costs from purchasing fertilizers to getting their products transported to market.
Small business owners care about doing their part for the environment. Eighty-four per cent of those CFIB polled have already taken measures, such as recycling, reducing electricity usage, using environmentally friendly products and making their buildings more energy-efficient, to reduce their carbon footprint because they believe that it’s the right thing to do. While the government wants to encourage businesses to further reduce their emissions by making investments in clean tech, many SMEs report they cannot afford to make the big investments, like green retrofits or buying a new fleet of vehicles. A new tax makes that more, not less, difficult. And even the small sliver of the new carbon tax revenue that is earmarked for rebates for small business is not in place yet. It appears, once again, small firms are an afterthought when government designs its policies and approaches.
In fact, the Agricultural Producers Association of Saskatchewan (APAS) recently estimated that increased input costs as a result of the new federal carbon tax could go up for crop farms by $2 per acre in 2019 and almost $4 per acre in 2022 – a calculation that includes natural gas and propane, shipping costs (rail, trucking), heating costs for buildings, and on-farm electricity consumption. For example, APAS estimates the total cost for Saskatchewan grain and oilseed producers will be $60 million per year in 2019 and $120 million annually in 2022.
Small business owners feel they are being taken for granted and treated unfairly by the federal backstop plan. If reducing Canada’s carbon emissions is everyone’s responsibility, why is government exempting much of the emissions from the big guys and rebating individual Canadians more than they actually pay? Wouldn’t the fair thing to do be to stop the plan and work with provinces on a less-harmful approach? At minimum, shouldn’t small firms be able to get a rebate that is similar to the amount they will pay in the new tax?
This is not the total hit to Saskatchewan farmers, as it does not include estimates for livestock producers. But for a 10,000 acre farm, these increased costs will amount to $20,000 more in 2019, while the estimated rebate for the average Saskatchewan farm family is only $660.
It is not too late for the federal government to change directions. Small firms are counting on our political leaders to listen.
To add insult to injury, the federal government has 30
CANADIAN MEAT BUSINESS
May/June 2019 2019 March/April
| 100TH ISSUE
Dan Kelly is President & CEO of the Canadian Federation of Independent Business (CFIB) and lead spokesman and advocate for the views of CFIB’s 110,000 small and medium-sized member businesses (7,200 agri-business members) across Canada.
e g d e e h t n e t h ig a r St o f y o u r k n iv e s k ly ! e a s il y a n d q u ic
New! Air-operated models available, too.
More power. Y S A E ' P R More profi ts. A SH
Sa fety! COD E 19 06 2 ee l - O ptimal Food St s es nl ai St 0% od el 10 N ew Mand The world’s most productive
profitable trimmer system: Now available in more models than ever!
Rapid and efficient For no-hassle meat recovery, defatting and muscle even for a novice cutting, experience the ultimate in productivity andsame use as a steel bottom-line performance when you use the expanded No.1 feature pre00%™ Trimmers. lineup of 1 Quantum tensioned bars
TAINLESS STEEL • Improved product appearance •S Increased meat yields
Free of maintenance (no springs mounted)
• Minimized need for rework • Improved worker productivity Join other leading North American plants … and gain all these benefits, too! Included with a stand for fixing at 90°C or 45°C
Visit bettcher.com/quantum for video demos and detailed specs! Contact the YES Group at 800-465-3536 or sales@yesgroup.ca to schedule an in-plant demonstration and custom financial impact analysis.
YES Group | Markham, Ontario
Hand protection
800-465-3536 | 905-470-1135 | yesgroup.ca Inverted hand-guard Better ®weight distribution From the makers of the Whizard Trimmer …
Available at the
Yes Group Inc.
Quantum, Whizard and the Bettcher design are trademarks of Bettcher Industries, Inc. U.S. and international patents. ©2014 Bettcher Industries, Inc.
meatbusiness.ca
201 Don Park Road, Unit 1 Markham, Ontario L3R 1C2 Phone: 1-800-465-3536 or 905-470-1135 Fax: 905-470-8417 Email: sales@yesgroup.ca www.yesgroup.ca July/August 2017 CANADIAN MEAT BUSINESS
35
100TH ISSUE | March/April 2019 May/June 2019 CANADIAN MEAT BUSINESS 3131
32
March/April 2019 | 100TH ISSUE
36 CANADIAN MEAT BUSINESS September/October 2017
meatbusiness.ca