Our January/February 2016 issue

January/February 2016

THE NATIONAL BEEF STRATEGY:

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2 CANADIAN MEAT BUSINESS January/February 2016

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IN THIS ISSUE January/February 2016

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How Does the Price of Oil and the U.S. Dollar Impact the Canadian Beef Industry?

The National Beef Strategy: With World Demand Increasing, Canada Prepares for the Future

By Scott Taylor

Pork has a Great Deal Going for it in 2016

By Kevin Grier

Q & A: Melinda German and Ron Glaser on the 2016 Check-Off Program

By Cam Patterson

Is the future of the international cattle business in the hands of the GRSB?

18 20 22 23

Farmers continue to bear the brunt of red tape; Alberta’s Bill 6 makes matters worse

By Amber Ruddy

For the Love of Hockey and Meat!

By Ronnie P. Cons

Canada Beef Producers’ True Environmental Footprint

Q & A: Dennis Laycraft and the GRSB

By Chuck Jolley

January/February 2016 CANADIAN MEAT BUSINESS 3

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GUEST EDITORIAL

January/February 2016 Volume 15 Number 1

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Scott Taylor, Chuck Jolley, Kevin Grier, Amber Ruddy, Ronnie P. Cons CREATIVE DIRECTOR Christian Kent 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. ©2015 We Communications West Inc. All rights reserved.

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

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HOW DOES THE PRICE OF OIL AND THE U.S. DOLLAR IMPACT THE CANADIAN BEEF INDUSTRY? In November 2015, the U.S. Energy Information Administration reported crude reserves to be 39.9 billion barrels. This is roughly equal to total U.S. crude production in 2015. So with the largest production year since the 1970s, the U.S. has been able to stockpile the equivalent of one year’s worth of oil production.

It should be no surprise then that U.S. oil prices have dropped more than 70 per cent in the past 18 months, dipping below $30 a barrel for the first time in 12 years. While economists may debate to what degree energy prices impact the so-called Canadian ‘petrodollar,’ the loonie has trended downward alongside oil in this latest slide, plunging to 14-year lows.

Oil companies are preparing for a prolonged downturn as analysts say there’s potential for further declines. The U.S. removed export tariffs the end of December.

In addition, the end of sanctions against Iran could bring thousands of additional barrels of oil to an already oversupplied market and drive prices down further.

Major producing countries are in a fight for market share as countries try to offset lower prices with larger volumes. The glut of oil on the global market may get worse before it gets better putting further pressure on the Canadian dollar in 2016.

While the Canadian dollar has slipped to 14-year lows, analysts note that it may need to fall even further to reflect economic activity. Analysts differ on how far the Canadian dollar could potentially drop, ranging between US$0.65 and US$0.59, before conditions stabilize. But recovery is only expected at or after mid-year.

What does the lower dollar mean for the beef industry?

Higher Beef & Cattle Prices - The exchange rate always impacts Canadian beef and cattle prices. The ability to arbitrage means that prices are determined in an open North American market. The depreciating dollar supported live cattle and beef prices in 2015. Research has shown that a one per cent depreciation in the exchange rate increases beef and cattle prices by one per cent.

Packer Competitiveness - A lower dollar decreases Canadian packer costs compared to U.S. competitors in U.S. dollars. So the labour cost disadvantage is muted, enabling Canadian packers to be more aggressive and keep more cattle in Canada.

Feed - The exchange rate also impacts the comparison of feed grain prices and the relative cost of gain between Canada and the U.S. These differences in feed grain prices influence where cattle will be fed.

A lower Canadian dollar positively impacts the beef industry throughout the supply chain, supporting prices and competitiveness. However, current market volatility creates uncertainty and risk that producers must also address, regardless of the price.

Courtesy of the Canadian Cattlemen’s Association.

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January/February 2016 CANADIAN MEAT BUSINESS 5

THE NATIONAL BEEF STRATEGY:

WITH WORLD DEMAND INCREASING, CANADA PREPARES FOR THE FUTURE

By Scott Taylor

Kevin Boon is excited about the future. The general manager of the British Columbia Cattlemen’s Association believes that Canada - and B.C. - is well-positioned to take advantage of the incredible increases in the world’s demand for protein that experts believe are coming in the next 50 years.

But he also believes that it will take more than just the knowledge that the world will need more protein if Canada is to make the most of what should be a windfall for the beef industry.

land and abundant grasslands, and our advancements in technology and production give us opportunities not available in other parts of the world.

For Boon, and other members of the beef industry, we live in exciting times. We also live in Canada and that means something.

“I believe that Canada is positioned to take advantage of these increases. However it will not happen without vision, planning and coordination as well as strategic investment, especially in research. The development of an industry-wide strategy is important, but also needs to be adhered to by not only those involved, but also by government. It also needs to be understood by the consumer to the extent that they trust in the direction the industry is taking and understand that the industry has the expertise to do it.”

“Canada has the ability to grow some of the safest, highest quality beef of any place in the world,” Boon told Canadian Meat Business Magazine. “Our climate, water, clean arable

Boon is not alone in his assessment and that’s why, one year ago, the Canadian Cattlemen’s Association, the Beef Cattle Research Council, the National Cattle Feeders Association and

Experts say the worldwide demand for food caused by increasing incomes and population growth is going to double between now and 2070. In fact, China is expected to become the world’s leader in meat consumption, a trend that will also be observed in other developing nations.

6 CANADIAN MEAT BUSINESS January/February 2016

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the Canadian Beef Breeds Council joined together to create Canada’s National Beef Strategy (NBS).

According to the National Beef Strategy’s own mandate “The growing global demand for protein has presented Canada’s beef industry with an unprecedented opportunity to increase demand for its beef products. The ability of the industry to fully seize this opportunity is not without significant challenges; tight cattle supplies, reduced marketing and competition for arable land are among the factors to be overcome. Canada’s beef sector organizations have responded to the challenge with the creation of the National Beef Strategy, a collaborative effort of national and provincial beef sector organizations, the National Beef Strategy provides the framework for how the organizations can work together to best position the Canadian beef industry for greater profitability, growth and continued production of a high quality beef product of choice in the world.”

In order to reach its goals, Canada’s beef cattle industry is in the process of organizing the first Canadian Beef Industry Conference (CBIC). The CBIC, a joint collaboration by the Beef Cattle Research Council, Canada Beef, the Canadian Beef Breeds Council and the Canadian Cattlemen’s Association, will be held Aug. 9-11, 2016 at the Grey Eagle Resort and Casino in Calgary.

“This is the first event of its kind in Canada and we are excited to bring Canada’s beef industry together,” said beef producer Rob Smith and co-chair of the 2016 CBIC. “The recently-established National Beef Strategy has four pillars, one of which is connectivity.

This conference will allow everyone from industry leaders to smaller-scale producers to come together and help grow our industry.”

The conference will combine semi-annual and annual meetings of several stakeholder groups, along with learning and networking opportunities to create a one-of-a-kind experience for participants from across all the various regions and sectors of the Canadian beef industry.

The CBIC 2016 program will include keynote speakers on each of the four pillars – connectivity, productivity, beef demand and competitiveness.

There will be educational presentations for producers and interactive workshops on applicable production innovations, plenty of networking with stakeholders in all stages of the beef supply chain and a unique lineup of events to draw industry stakeholders from across the country.

“We are excited to bring Canada’s beef industry together under one roof,” said beef producer Virgil Lowe, co-chair of the 2016 CBIC. “No matter where you live or what your role is in our industry, this oneof-a-kind national event will be worth the trip.”

For Ryder Lee, the CEO of the Saskatchewan Cattlemen’s Association, the NBS Conference will meatbusiness.ca

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January/February 2016 CANADIAN MEAT BUSINESS 7

provide the connectivity that Lee believes Canada needs to prepare itself for the future.

“This conference will provide us with the opportunity to combine a number of the meetings that occur across Canada and bring them all together under one roof,” Lee said. “It will give us all an opportunity to hear a number of different things and it’s important that we all know what’s going on across Canada. It will only help our understanding of the entire Canadian beef industry and anytime you can consolidate a few airline trips into one, it’s good for business.”

One question that will be asked - and for producers, hopefully it will be answered - will concern the future of the industry and the dramatic increase in demand for protein all over the world: Is the Canadian beef industry - that’s the entire supply chain - prepared to take advantages of these expected increases?

“There are a lot of factors that play into this,” said Boon. “While the demand for protein is expected to double by 2060-70, it would probably be safe to estimate that the demand for food on a whole, not just protein, will double.

“I believe that the real question has to be: Is Canada positioned to meet the challenge of being able to help supply the world’s demand for food and what is our best opportunity, plant or protein? It is my opinion that we have an opportunity and a responsibility to concentrate and develop our production and markets through protein.

“We have some time to overcome these challenges. We typically run in cycles of seven-to-10 years, at least historically.

The challenge is having a viable strategy and having all of the players at the table understanding where we need to go. As a free market industry the key is that all players need to see an opportunity for investment and growth. Food production and especially proteins have a bright future. Our job is to develop the tools for investment and increased productivity to make it the most viable to those wanting to invest.”

The mission of the National Beef Strategy is pretty simple: “To be the most trusted and competitive high quality beef cattle producer in the world, recognized for our superior quality, safety, value, innovation and sustainable production methods.”

It could be argued that Canada is already at or near the top of the heap. McDonald’s Restaurants, one of the largest purchasers of beef products in the world, would certainly agree, having chosen Canadian producers above all others for its Sustainable Beef Initiative. The question in 2016, however, is will Canada be able to produce enough quality beef to feed the growing demand? Already, each animal that Canadian cattlemen raise will be processed into more than 300 products.

Exporting products that are in greater demand outside of Canada can add more than $400 in value per animal. There is a lot of money at stake.

“We raise a really good product,” said Melinda German, the general manager of Manitoba Beef. “The potential is so huge in front of us. More international markets are opening up. The affluence of many countries is growing as people have more disposable income around the world and they start to move from a plant based to animal protein diet.

“Having said that, we’ve just come out of a very tough decade. Economists have said that we’re unlikely to see the low prices we did when it bottomed out last decade, but there will still be another low again. Are we ready to meet the demands of the future? Yes and no. Our inventories across the country are at an all-time low. The U.S. has started to rebuild its herd, but we haven’t seen the same signals here in Canada. I’m confident we will rebuild and when we do, we need to be prepared for future growth.

“To get there, we must have a national strategy to support the industry... That’s what the NBS can do.”

Rich Smith, the executive director of the Alberta Beef Producers, believes Canada is well-positioned to remain an international leader in quality beef production.

“With growing demand for protein and increasing prosperity in the developing world, we think that the Canadian beef industry is in a good position to take advantage of recent developments,” Smith said. “We are competitive producers of high quality, grain-fed beef so the combination of growing protein demand and increased prosperity should create increased global markets for our products.”

Having said that, however, Smith agrees with the National Beef Strategy – there are challenges that must be met and overcome.

For instance, a key portion of the NBS is its Competitiveness Pillar. It addresses the issue of keeping Canada competitive both at home and in the world’s markets and it will be a popular topic at the national convention:

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A. To be competitive, it is necessary to have a regulatory system that supports the industry, encourages innovation and efficiency, and doesn’t add unnecessary burden or costs. The strategy advocates and upholds a scientific based regulatory system in cooperation with trading partners.

“We do face significant challenges, but I think we can overcome them and take advantage of the opportunities,” Smith said.

“Our export market access is improving and we think that the profitability of the past couple of years will encourage expansion of our cow herd. We do face strong competition for land and water resources, as well as sustainability and social license pressures, but much of the land in Alberta is well suited to cattle production and our industry is taking a leading role in addressing social license issues.”

In the meantime, Smith is proud of Alberta Beef’s involvement in the development of the National Beef Strategy.

“The NBS represents our answer to two of the most frequent challenges we would hear from outside our industry: We need to get together and we need a plan,” he explained.

“The NBS is the result of an unprecedented level of collaboration among national and provincial cattle and beef organizations to create an ambitious five-year plan for our industry with clear and measurable objectives.”

The NBS certainly has lofty goals. According to its mandate, “the National Beef Strategy seeks to position the Canadian beef industry as the most trusted and competitive high quality beef cattle producer in the world recognized for its superior quality, safety, value, innovation and sustainable production methods.”

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While most of its members agree that Canada is already a world leader, Kevin Boon is excited about the NBS and its future because B.C.’s future appears even brighter than many other provinces. In fact, with growth in Asian markets will come growth in B.C. production.

“BC is one of the few provinces that will see the biggest advantage in increased beef production,” Boon explained.

“Much of BC is suitable only for livestock production and as such will not be faced with as much competition for the land base as other provinces.

“Our membership will be looking at how to increase the Continued on page 10 meatbusiness.ca

January/February 2016 CANADIAN MEAT BUSINESS 9

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D. Consumers are increasingly demanding food that is produced in a sustainable manner and Canada must be at the table when discussing the environmental, social, and economic sustainability priorities with beef leaders around the world. The strategy will provide the research and information for factual and science-based communication.

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B. All industries must have access to competitively priced inputs in order to be profitable – the beef industry is no exception. It is imperative that the Canadian business environment supports the development of new innovative inputs that can reduce production costs.

production on those lands, both forage and beef. We will be looking at what opportunities are there to increase production as well as how we increase our province’s presence in the world market.

“We are a small percentage of Canadian supply right now, but we are positioned well to the Asian markets and have the climate and geography to sell Canada to the world. We will be looking to the NBS convention to (a) show us how to position ourselves and (b) where we fit into the plan.”

Ryder Lee in Saskatchewan is also excited about Canada’s current position in the world and, as well, where it’s going.

“I think Canada, and Saskatchewan especially, will produce more than we can eat so that the growth of new markets won’t be as challenging as we might think. In fact, these new markets will probably be necessary,” Lee said. “In Saskatchewan, we have more land than we have bounty to produce. The point I’m trying to make is that Canada’s productivity is greater than we need.

“However that’s not to say there won’t be challenges in the future. We will be affected by weather around the world.

We are always tight in cattle and supplies. And we’ve only recently gone through BSE and drought in the west. However, ultimately, the biggest challenge will be our own competition for the land. That’s why I’m looking forward to the convention in August. It will be good for all of us to get an understanding of what everyone is doing as we move forward.”

For Rich Smith and the Alberta Beef Producers, this year’s NBS Convention will also be about education. If Canada doesn’t have a national plan, the growth in international markets just might not yield the windfall that the experts believe are inevitable.

“The Canadian Beef Industry Conference addresses the connectivity pillar of the NBS and will be a place for the industry to come together to talk, learn and plan for the future,” said Smith. “We see great value in gatherings of producers and industry personnel where people can exchange views and gather new perspectives. We look forward to the opportunity for Alberta producers and ABP to meet with producers and industry people from across North America.”

German, who is soon moving to Alberta to work for Canada Beef and become more closely with the NBS is excited about the inaugural convention.

“It’s bringing together a lot of the key people in the industry,” she said. “However, I will be interested to see who it will attract that might not be key industry people. We have a message we need to et out to Canadians that we provide safe food and very high quality food and it will be interesting to see if this first national convention attracts the people who need to hear the message.”

It’s an important first convention. After all, if you ask producers from all over Canada, you realize that there is a lot at stake. The future is bright, but it’s also very challenging.

PORK HAS A GREAT DEAL GOING FOR IT IN 2016

By Kevin Grier

The pork sector goes in to 2016 on very solid footing with regard to both supply and demand from a retailer/foodservice perspective. In addition, the product is very cost/price competitive with regard to the two main competing meats, beef and chicken and it has performed very well from a margin perspective for merchandisers.

As a starting point, it is worthwhile to review Canadian consumer demand for pork. Recall that demand is a combination of a number of factors, the most important of which are changes in consumption and changes in price. For perspective, consider that in 2001, Canadian’s consumed 29 kilograms of pork per year on a carcass basis. The 2015 data is likely to show that the consumption amounted to about 22 kilograms. On the surface that trend 10 CANADIAN MEAT BUSINESS January/February 2016

does not seem too good for pork. With that noted however, the 2015 consumption is likely to be the most in about 5 years. That seems like a turnaround on consumption.

On the consumer pricing front, pork prices are very high.

Prices were driven skyward in 2014 due to the supply reductions caused by the PED virus at the farm level.

According to the Statistics Canada Consumer Price Index, meatbusiness.ca

prices have been mostly steady to higher in 2015. That is on top of those big gains in 2014. Consumer pork prices are high, there is no getting around that fact.

The main point with regard to demand is that not only is consumption up in 2015, but it is up despite very high pork prices. Furthermore, consider the performance of demand in 2014. Yes Canadians ate less pork in 2014, due to lower availability and much higher prices. Given the soaring prices that year, however, the lower consumption could have been much worse.

Canadians have been stepping up to the meat case for pork in a big way in 2014 and 2015.

The key take away is that Canadian pork demand begins 2016 very robust.

On the supply side, as is well known, 2014 was a tough year for pork availability given PED. The industry moved beyond PED in a big way in 2015 and saw North American production bounce back fast. North American pork production increased by at least 7% in 2015 compared to 2014. That is about 5% more than in 2013. Looking ahead to 2016, I expect that production should increase by another 1+% on top of the big number in 2015.

As such, 2016 pork availability should be ample and comfortable. Couple that with the strong demand, and from a retailer/foodservice perspective, the pork side of the protein offering looks to be shaping up very well.

Another aspect of pork that should be making merchandisers pleased is its profitability. As noted above, retail prices of pork have been very high to compensate for high costs last in 2014 and early 2015. Since early 2015, however, pork costs for retail/foodservice buyers have been declining. That in turn has meant that pork is likely the most profitable of the three main meats in the meat case.

Not only is it probably the most profitable of the big three fresh meats, it is the most cost competitive. Relative

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to recent historical averages, wholesale pork prices, the cost side for retail/foodservice buyers, have been running much less than beef and a little less than pork. In other words pork is cost competitive for buyers.

With regard to that overall protein offering, it is likely that foodservice and retail merchandisers are going to see some modest relief on the supply side of the beef market. Buyers and merchandisers have been struggling and frustrated the past two or more years with very low beef supplies and unbelievable pricing. The depreciated currency of course only made matters that much worse. In 2016 it is likely that beef supplies will increase by about 2% (USDA says 4%).

That increase is not going to make beef remotely abundant by historical standards, but from a buyer’s perspective at least it is going in the right direction. Chicken is also looking more plentiful and comfortable for buyers in 2016. U.S.

supplies are shaping up to be record breaking by a long shot. In Canada production going into the first half of the year looks to be plentiful.

The bottom line is that there is going to be increased supplies of the three main meats. Within that context, pork enters the year as the most profitable and competitive with an improved consumer demand profile.

Kevin Grier is a respected and connected agriculture and food market analyst with a solid understanding of industry issues from farm to retail.

His research and analysis helps companies, producer groups, financial service organizations and governments make informed decisions that impact their bottom line.

Website: www.kevingrier.com

Q & A: MELINDA GERMAN AND RON GLASER ON THE 2016 CHECK-OFF PROGRAM

By Cam Patterson

This past January, the Canadian Beef Cattle Research, Market Development and Promotion Agency announced the appointment of Melinda German as their new general manager. The announcement meant more than just bringing a new face into the organization but a new position with the aim to roll the check-off into the new frontier that is beef exporting and marketing in 2016. German brings a wealth of industry experience into the new position and according to Ron Glaser, VP Corporate Affairs, she was exactly what they were looking.

Canadian Meat Business had the opportunity to engage both Melinda and Ron in a Q & A to usher in 2016 from the standpoint of the check-off and to discuss the exciting year ahead.

CMB: I appreciate you both taking the time to do this Q + 12 CANADIAN MEAT BUSINESS January/February 2016

A with us.

RON: I kind of feel like I’m photo bombing the interview a little. Actually, I’m really glad I’m getting a chance to talk about Melinda joining the organization and what her contribution and experience is going to bring to us. We’re meatbusiness.ca

very pleased to have her with us.

MELINDA: And I’d just like to take this opportunity to thank Ron for his support in joining us for this interview as well as I actually start March 1st so he can definitely bring some background to the discussion.

CMB: Melinda can you tell is a bit of your background?

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MELINDA: At present I’m the general manager of the Manitoba Beef Producers, having worked in Manitoba for over 15 years. I’ve worked extensively with the provincial government here in Manitoba. For 13 of those 15 years I was also with the Manitoba Agriculture, Food and Rural Development, serving as director of the Livestock Knowledge Center. In that role I oversaw the provincial livestock specialists, the veterinary diagnostic laboratory and records and reporting to the assistant deputy minister.

CMB: So Manitoba born and raised.

MELINDA: Actually I grew up on a farm in west central Saskatchewan and the University of Saskatchewan where I completed my Bachelor and Masters degrees in beef production. Following that I worked in the industry in both Saskatchewan and Alberta before coming to Manitoba. So, I guess you can say it has always been my passion and because I do feel that level of commitment and sense of duty to the industry, I feel very fortunate to have been given this position that will allow me to work for the betterment of our industry.

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CMB: We’re you surprised by this new appointment?

MELINDA: Well, I feel my roles in the government sectors has definitely prepared me for what’s ahead, so I’m confident coming into the agency. But even though it is exciting, it is one of those things that is kind of bitter sweet.

I’ve lived in Manitoba for 15 years and this understandably is a big move for me. I’m a people person at heart so I’m a bit sad leaving behind my friends and co-workers I’ve gotten to know in the provincial side of the beef industry here.

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CMB: Ron, what is your background?

RON: I’m actually a born and raised city kid from Calgary.

My background is in public relations and communications.

I joined the industry right out of school and had no agriculture background prior. Ironically, in Calgary, I think the assumption is your future in PR is destined for the oil towers downtown, but at that time, just like now, the oil industry was in a slump. There was just more opportunity in the agriculture sector and that’s where my opportunity came from. Twenty-five years later and I couldn’t be happier about it. I get to work with cattle producers who, just like Melinda, are very passionate about their product.

Raising food is a very intimate livelihood and with it is this very intrinsic connection to the land and rural Canadian Continued on page 14 meatbusiness.ca

Join Today! www.cfib.ca/agri January/February 2016 CANADIAN MEAT BUSINESS 13

communities. It really is a very meaningful industry and that can be very rewarding to be a part of that.

behind us, how do you see that effecting marketing initiatives?

CMB: You’re now the VP of Corporate Affairs. What was your path to this position?

RON: COOL certainly remains an interesting topic. As we know, the industry has never been shy to brand its product as Canadian. Even though our issues with COOL were not about being identified as Canadian but the effect on market prices because of the logistics brought about because of COOL in the United States. We certainly are planning to continue to be Loud and Proud when it comes to promoting our brand, because now it is an opportunity to strengthen ourselves and see better returns, because the adversity has definitely set us up for future growth and prosperity.

RON: My first position was with the Alberta Cattle Commission back then. In 2006 I made a lateral move to the Beef Information Center, which was the group responsible for U.S. beef marketing. And very similar to what Melinda said, I cut my teeth servicing the Alberta producers and was fortunate to take all those soft skills I’d learned to benefit national cattle producers. Then in 2011 the Beef Information Center and the Canada Beef Export Federation, which was responsible for international beef marketing and the national check off agency, were consolidated into Canada Beef and I’ve been a proud member of the team since.

CMB: Melinda, how do you see your new role within this period of flux going on this year?

MELINDA: That’s a good question. This is a new position in terms of the accountability of organizational performance around national check off. But my role, primarily, working with colleagues at Canada Beef and the Beef Cattle Research Council, is to facilitate these initiatives that support the National Beef Strategy. The industry as a whole has been working towards a goal and I’ll have a part to play in that scheme. But also I’ll be ensuring our activities fall under the requirements of the farm products act. So, it’s a big administrative role albeit collaborative and leadership demanding as well.

CMB: This role will have a new scope for you?

MELINDA: Yes, very much and one of the things that makes it exciting for me is that it is a new journey. It’s a new opportunity because we’re working at things in a little bit of a different way while still building on the strengths that Canada Beef and the Beef Cattle Research Council has done, and will continue to keep doing, which I’m very proud to be a part of because they do great things for the industry. So, naturally, I’m really looking forward to being a part of continuing to build on those successes. That is very gratifying for me personally.

CMB: It looks like 2016 will be a big year for the agency.

MELINDA: Yes it is. As you know the national check-off covers two areas, the marketing and promotion of Canadian beef as well as the research, so as much as that can bring challenges, it is looking like it’s going to be a really good year. There is a lot of excitement in the industry and there is a lot happening. I’m really looking forward to getting into the role and working with my colleagues at the Beef Cattle Research Council and Canada Beef, and getting going on what is in front of us.

CMB: With the start of 2016, it appears COOL is almost 14 CANADIAN MEAT BUSINESS January/February 2016

MELINDA: Ron said this well so I’ll just add that the resolution of COOL, along with other markets like South Korea, is all very positive and bodes very well for our 2016 projections. When we start to see these markets open up, or in some cases re-open up to us, and see restrictions and trade barriers lifted, it’s going to contribute to stability in the market place for that given year. I think it’s fair to assume, even at this early point into 2016, that these factors will have a positive impact on the industry for all of Canada. That said, we still need to move into that herd rebuilding phase at the primary producer level to increase both our product and our supply because those types of movements in the international market place drive the kind of expansion within the industry.

CMB: Let’s change direction and talk about the TransPacific Partnership (TPP). China recently visited the Beef Center of Excellence and these visits certainly speak to the marketing the organization is embarking upon.

RON: Definitely. We’ve had groups from Japan, China, Taiwan over the last couple of months in 2015. Our Center of Excellence is very busy enticing trade clients to Canada, demonstrating our production and processing systems, our beef quality, both in product and livestock. We continue to work hard with such initiatives to bring the brand to life for our export customers and help them see the opportunities they can have as a result.

CMB: Since we’re talking about plans and initiatives, we should also be talking about sustainability. It seems to be a big year shaping up in that area as well, especially with the assessment and the Beef Strategy Conference coming up.

RON: I’m glad you brought up sustainability. At Canadian Beef we have a brand promise, and supporting that plan are four pillars and one of those is sustainability. It is a key element for us going forward. Social licenses in general are significant because consumers have awareness in where their food comes from and how it is raised. We also, here in Canada, have a very strong story to leverage our domestic and international marketing. As well, we are part of the Canadian round table and participated on various committees, and working hand in hand to quantify what meatbusiness.ca

we do here in Canada to adhere and support sustainability initiatives globally.

CMB: I was also curious about the balancing act that goes on between domestic and export sales. With the terrain changing, how is this effecting the check off today?

RON: Well, 10 years ago the industry was a bit more focused on volume. In a lower supply phase like we’re in now, selling the beef is not the issue. What we’re trying to do is get the best possible value for the carcass and create as many opportunities as possible for producers’ cattle. That has meant targeting specific markets and customers in order to secure the best deals for all parts of the carcass and that involves both import and export customers. Canada has always been a trader market and industry, so we’ve always searched around the world for trade opportunities to seize, but balancing that with the fact that imports play a substantial role in the overall value of the carcass. It can be a balancing act for sure.

CMB: Melinda, is the scope of your new position fitting into that scheme as the first order of business?

MELINDA: Absolutely and I’m still adjusting to this new position, so determining the scope and expectations of my role will be foremost on my agenda. I can’t wait to get started in March. It’s definitely going to be an exciting year for beef in Canada.

RON: It sure is and we can’t wait for Melinda to arrive to be honest. We are a diverse industry where every province in the country raises cattle, and yet, each region is unique, and celebrating those differences translates to a strong Canadian brand overall. But the other side to that is there is a patch work of regulations, marketing and check-offs across the provinces, so developing a common strategy and approach across the industry is the challenge. Working with provincial stakeholders to blend that diversity is where Melinda is going to be key for us.

CMB: That’s an important point to note because what producers deal with in Alberta is not what they deal with in Cape Breton Island.

RON: Well, let me say this. If you’re a cattle producer paying check-off, that deserves respect and it deserves representation regardless of where you’re producing.

MELINDA: As Ron said, our industry is so diverse, with so many great success stories to celebrate in terms of differing production and marketing methods across all the regions. Getting to know the producers from coast to coast and utilizing that diversity to strengthen our Canadian brand even more is the challenge for me. In all honesty, that challenge is one of the key aspects of my new position that I’m really looking forward to.

For more information on the Canadian Beef Cattle Research Agency, visit www.beefresearch.ca

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January/February 2016 CANADIAN MEAT BUSINESS 15

IS THE FUTURE OF THE INTERNATIONAL CATTLE BUSINESS IN THE HANDS OF THE GRSB?

By Chuck Jolley

Late last year, the board of directors of the Global Roundtable for Sustainable Beef (GRSB), elected Dennis Laycraft, executive vice president of the Canadian Cattlemen’s Association, as its 2016 president. It’s a position that should give Canada a more important voice in the world’s burgeoning beef business.

Forrest Roberts, former CEO of the National Cattlemen’s Beef Association and who served as president until Laycraft’s election, said, “GRSB has made tremendous progress since its founding in 2012, and Dennis will help to continue the organization’s success.

“Building on GRSB’s definition of sustainable beef adopted a year ago at our conference in the Netherlands, there is momentum among the regional roundtables in Brazil, Canada, and the U.S. to do the hard work of developing indicators and metrics to measure sustainability in the beef value chain and GRSB will need to be engaged in order to provide any needed guidance,” said Roberts.

The organization has some assets as well as a few drawbacks. GRSB is top heavy with representatives of the major players in the beef industry. The Board is driven by 16 CANADIAN MEAT BUSINESS January/February 2016

businesses like Cargill, Elanco, McDonald’s Corporation, and Royal Ahold. Protecting the ‘Sustainable’ part are members of Fundacion Solidaridad Latinoamericana, National Wildlife Federation and the World Wildlife Fund.

The founding members speak to the powerhouse organization that is the GSRB: Cargill, Elanco Animal Health, JBS, McDonald’s, Merck Animal Health, Fundacion Solidaridad Latino-american, Walmart and the World Wildlife Federation. What’s missing are important voices from the small to mid-sized stakeholders which make up a substantial portion of the industry.

JSB’s Cameron Bruett, who has served as the president of GRSB, spoke at the Colorado Ag Classic in December about what the group means by sustainability and talked about the average farmer and rancher, too. He said, “It’s continuous improvement toward a goal,” he said. “It’s a meatbusiness.ca

journey, not the destination. Sustainability is everything, from the workforce used, to the local impact of the operation, to the generational transitioning of the land, to, yes, the environmental footprint and even profit.”

Europe. They’ll each reach conclusions based on what’s most important for the health of their home markets and then bring their various positions to the next international meeting, which could create an intra-family feud.

Defining the charge of the organization more fully, that of bringing the ‘hands on’ people into the conversation, he said, “You cannot have the sustainability conversation without considering who is going to pay for the changes, and the ultimate profitability of the people on the land at the end of the chain—farmers and ranchers.”

Laycraft was unconcerned. “One of the great strengths of the bovine animal is its ability to adapt to its environment and to convert the forages and feeds that are available into a high quality food,” he said.

His main point? “If farmers and ranchers aren’t profitable, we lose rural farm businesses and you’ll see vast declines of towns that rely on agriculture. We have to balance the needs of the society and the environment. We can’t drive farmers out of profitability.”

Of course, the folks who see world-wide meat production as the evil Satan of the world’s food supply quickly condemned the work of the GRSB. One self-styled pundit, giving too much credit to a failing group of fanatics, wrote, “One result is clear: the clunky prose dished out by the GRSB will give its adversaries, such as PETA, more ammunition in the continuing fight over the meat industry.”

When I asked Laycraft to further define the work of the Roundtable, though, and where it might ask the industry to go. He said, “The GRSB is a global, multi-stakeholder initiative developed to advance continuous improvement in sustainability of the global beef value chain through leadership, science and multi-stakeholder engagement and collaboration.

“Each member is committed to supporting the vision, sharing information, and demonstrating that they are effectively meeting the principles and criteria that the GRSB has established. Sustainability is not about one type of production or another.”

That next international meeting will be held in Banff, Alberta from October 3-7, 2016. Laycraft, delighted about the opportunity to host it in Canada, is planning an industry tour for the 4th and the plenary sessions will run from the 5th through the 7th.

“It is still early in the planning,” he said, “and we hope to get out more details shortly.” Regardless, it will be an important international showcase for the Canadian cattle industry.

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

His is a noble definition, to be sure, but too many organizations stumble out of the gate when they try too communicate their intent to an often disinterested audience; those beef businesses not involved with GRSB as well as the general public.

He agreed. “That is a never ending job and one in Canada we are referring to as changing the conversation,” To reach that goal, he said. “We are updating our communication tools with greater emphasis on social media.”

He warned that it will require a commitment from “our entire membership to engage positively where ever and whenever we can and to show the great work that is taking place.”

To put that ambitious communications plan in context, Laycraft said, “Our first task was to define sustainability and to reach consensus on the principles and criteria that frame that definition. That was completed in October 2015. Our next task is to support and encourage leading sustainability initiatives including regional and country roundtables.”

Those regional roundtables are in Brazil, Canada, and the U.S. with similar groups in Columbia, Mexico and meatbusiness.ca

January/February 2016 CANADIAN MEAT BUSINESS 17

FARMERS CONTINUE TO BEAR THE BRUNT OF RED TAPE; ALBERTA’S BILL 6 MAKES MATTERS WORSE

By Amber Ruddy

What comes to mind when you hear someone talk about government rules and paperwork? If you ask an entrepreneur, you’ll get an earful about red tape headaches and frustrations in dealing with government.

A new national survey released by the Canadian Federation of Independent Business (CFIB) found red tape continues to hit farmers even harder than other small business owners in 2015. Three in four (76 per cent) farmers identify government regulation and paperburden as a serious concern for their business, compared to 69 per cent of all businesses in Canada. This marks the fifth consecutive year that farmers’ red tape frustrations have outpaced that of the general small business community in Canada.

Farmers list an alphabet soup of regulations and agencies that are costing them time and money, including the Canada Revenue Agency, Canada Border Services Agency, Canadian Food Inspection Agency, Statistics Canada, land use restrictions and by-laws, and product labeling.

But, for all the photo-ops and campaign commitments made at the farm, Canada’s farmers have seen little relief from the burden of costly government rules and paperwork.

Farmers have no issues with the legitimate rules; red tape 18 CANADIAN MEAT BUSINESS January/February 2016

is something else. For farmers, red tape takes many forms: it can be contradictory information from the Canadian Food Inspection Agency (CFIA), or Statistics Canada continuing to insist farmers complete the Census of Agriculture right in the middle of seeding. That said, the federal government has taken a first step toward reducing the burden of the Census of Agriculture by providing the survey online and also cutting some 18 questions out of the survey.

Unfortunately, when it comes to the total red tape burden, some provincial governments seem adamant to make a bad situation worse. Case in point, the Alberta government recently introduced Bill 6, the Enhanced Protection for Farm and Ranch Workers Act, despite widespread protests from farmers across the province. Bill 6 extends mandatory Workers Compensation, Occupational Health & Safety, and Employment Standards and Labour Code to Alberta farms.

Alberta farmers worry that this “one-size-fits-all” legislation will hurt the province’s already fragile economy and there meatbusiness.ca

has been little opportunity for input. Farmers care about their employees - most of them are family and friends.

Producers are committed to providing their employees with a safe and healthy workplace and believe any farm fatality is one too many. That’s why the Alberta government needs to listen to farmers and focus on practical ways to improve farm safety, rather than imposing blanket rules that don’t reflect the realities of farming and may not actually improve safety.

According to CFIB’s research, Alberta farmers say the most effective ways to promote farm safety are making safety measures more affordable (51 per cent), safety promotions at farm shows/demonstrations (45 per cent), and safety education programs in schools (42 per cent). Only seven per cent of Alberta farmers say government legislative requirements are most effective at promoting farm safety.

Even with last-minute amendments to exempt family members, there are many outstanding concerns with Bill 6.

CFIB’s data reveals mandatory inclusion of legislation included in Bill 6 would have a negative impact on Alberta farms: • 79 per cent of CFIB’s Alberta agri-business members say mandatory inclusion of agriculture under the Employment Standards and Labour Code would have a negative impact on their business • 75 per cent say mandatory inclusion of agriculture under the Occupational Health and Safety Act (OH&S) would have a negative impact on their business • 62 per cent say mandatory inclusion of agriculture under the Workers’ Compensation Act (WCB) would have a negative impact on their business

meat processors have been frustrated for years with the paperwork needed to prove they can’t find Canadians willing to take work in order to access temporary foreign workers.

CFIB is committed to fighting the red tape burden. Let’s hope governments start listening to the vibrant and innovative agri-businesses that continue to provide an abundance of jobs and quality food for Canadians.

Visit www.cfib.ca to find out what you can do to make sure all levels of government hear your voice on issues important to your business.

Amber Ruddy is Director of Provincial Affairs, Alberta, for the Canadian Federation of Independent Business (CFIB). Follow Amber on Twitter @ aruddy and learn more about CFIB at www.cfib.ca.

Established in 1971, CFIB is Canada’s largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs™. CFIB takes direction from more than 109,000 members (including 7,200 agri-business owners; with 750 agri-business owners in Alberta) in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

Occupational Health & Safety, WCB, Employment Standards and the Labour Code were not written with the realities of farming in mind. We all know agriculture is not a nine to five business, especially during peak production, like harvest or calving season.

Alberta’s economy is already fragile and Bill 6 will hit Alberta’s agriculture sector hard. The Alberta government should be working to keep agriculture competitive in order to attract the next generation of farmers. Unfortunately, Bill 6 will do the exact opposite.

Clearly there are many reasons why Bill 6 is unworkable for Alberta farmers. That’s why CFIB is urging the Alberta government to stop, listen and consult with Alberta farmer to find ways to improve farm safety without threatening the livelihood of thousands of Alberta producers. The next round of consultation must extend beyond six roundtables of appointed stakeholders.

This is just one example of a government imposing kneejerk regulations without a proper understanding of the realities of agriculture. Those in agri-food production aren’t immune to this kind of red tape either. For example meatbusiness.ca

January/February 2016 CANADIAN MEAT BUSINESS 19

FOR THE LOVE OF HOCKEY AND MEAT! LEVERAGING THE HOCKEY SEASON TO DRIVE MEAT AND POULTRY SALES

By Ronnie P. Cons, EVP C&C Packing Inc.

This is the time of year when a meat retailer needs to ask: How can we take advantage of Canada’s most favourite sport to drive more meat and poultry sales?

The answer lies in first analyzing the connection between hockey and meat in terms of shared cultural links and associated parallel needs and using that information to promote their sale.

from their restaurants and food counters during the games to the point that they are culturally linked to the game. The Bell Centre in Montreal, host to the Canadiens, has a food counter that sees big sales of its Bell Centre hotdogs as well as burgers and combos.

Toronto’s Air Canada Centre hosts the popular “The Dog House” restaurant sells gourmet hotdogs and foot longs sausages.

Here are some of the links between hockey and food: 1.

Most Canadians love the sport of hockey and eating meat.

2.

A large percentage of the males who are hockey fans have gone to at least three professional NHL hockey games where they had consumed a meat product while watching the game. Most of these made a pleasant (and partly subconscious) connection between watching the game and eating a meat product.

3.

Canadians love to eat while watching the NHL games on television.

4.

Meat and poultry provide the energy and nutritional elements (iron, protein, vitamins) that hockey players need and like to consume in the format of meat and poultry. Hockey players, both children and the pros love to consume meat protein (pros often prefer leaner cuts).

5.

All NHL arenas sell lots of hotdogs and hamburgers

6.

Almost every sizable Canadian town has a local hockey arena that hosts minor league hockey games in the winter which often have canteens that sell hotdogs and hamburgers.

7.

Many parents use food and shared eating times like supper as a tool to get the family together at least once a day and hockey talk is often the subject of the conversation.

Considering the connections between hockey and meat we can propose the following strategies that can be implemented by the retail meat department to drive higher sales: 1.

Hockey themed and designed boxes of pre-cooked and ready to heat meats that are popularly sold at the NHL arenas should be developed for sale.

The packaging should have hockey images and pictures of arenas with persons in them watching the game while enjoying a nice hotdog or hamburger.

Various meat packages can be sold - one package can contain pre-cooked special hotdogs, buns, disposable hockey themed cups like those used in the arenas; another will contain pre-cooked hamburger patties, while a third can contain a combo of both.

Other packages can contain pre-cooked pulled pork or pulled chicken for a nice meaty sandwich.

20 CANADIAN MEAT BUSINESS January/February 2016

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Posters in the section next to the items will promote these new packages as the way to get that “Arena experience” to get some of the feeling of actually being at the game. Photos on the poster can depict ideal ways to enjoy the boxed “hockey meal”- either with family and friends while watching the game or with family at the table as a fun experience and way to get the family together for a nice meal with a hockey twist.

2.

Local Arena meat re-seller of meat in hockey themed packaging.

In this case, the meat department manager should contact the local hockey arena food counter manager/ owner and promote to them the idea of having the food counter re-sell the above hockey themed food packages except in individual portions. The meat department would provide the food counter a nice poster promoting the hockey themed meat.

3.

Networking with local teams that play at the arena.

In this case, the objective will be to motivate the team managers to buy bulk size hockey themed packaged meat products as a treat for their team players that can be enjoyed at the arena right after the game. Bulk packages can be delivered pre-cooked and heated.

This can be offered by the team as an incentive to win especially during playoffs and finals. The hockey themed packaging will encourage their purchase as it will fit right into the hockey mood as opposed to pizza.

In summary, hockey and meat make a perfect match and thus provide the meat department manager with opportunities to leverage the Canadian winter hockey season in order to drive higher meat and poultry sales.

Ronnie P. Cons is the EVP of C&C Packing, a leading Canadian distributor of meat and poultry.

He can be contacted at Rcons@ CCpacking.com.

Visit www. ccpacking.com

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January/February 2016 CANADIAN MEAT BUSINESS 21

CANADA BEEF PRODUCERS’ TRUE ENVIRONMENTAL FOOTPRINT Canada’s beef industry continues to improve efficiencies that lessen its environmental impacts, with production of one kilogram of Canadian beef creating 15% fewer greenhouse gas emissions in 2011 compared to 1981, a new study has found.

Continual improvements in production and feed efficiencies, crop yields and management strategies, resulting in reduced emissions and resource requirements, were largely responsible for the significant decrease in environmental impact, according to the first results of a comprehensive five-year (2013-2018) study examining the Canadian beef industry’s environmental footprint.

Conducted by researchers at the University of Manitoba, Agriculture and Agri-Food Canada (AAFC) Lethbridge and Environment Canada, the study found that there has been a 15% decrease in methane, 16% decrease in nitrous dioxide and 13% decrease in carbon dioxide from beef production in Canada over the recent 30 year period. Comparing the same time periods, it took 29% fewer cattle in the breeding herd and 24% less land to produce the same amount of beef1. This study explored the entire production system – from cow-calf to feedlot. Future phases of the study will assess the impact of Canadian beef production in areas such as water use, biodiversity and provision of ecosystems services.

“We’re working to get a more accurate assessment of the Canadian beef industry’s environmental footprint and these results indicate that the footprint per kilogram of beef produced is getting smaller,” said Dr. Tim McAllister, a research scientist at AAFC Lethbridge and one of the study’s principal investigators. “The decreased emissions and reduced resource requirements to produce beef over the past few decades, due in part to enhanced production and feed efficiencies, crop yields and management practices, wouldn’t have happened if it weren’t for investments in research and development, and the industry’s ability to adopt those technologies,” he explained.

Dr. McAllister is a world-renowned scientist. He works with the Food and Agriculture Organization of the United Nations on the procedures used to develop these estimates, and has served on the Intergovernmental Panel on Climate Change.

The environmental impact of livestock production has been a contentious topic for some time, and greenhouse gases and resource use have been at the forefront of this environmental debate. For the Canadian beef industry, with over 68,500 beef farms contributing $35 billion worth of goods and sales to the economy, clarity on this topic is important.

22 CANADIAN MEAT BUSINESS January/February 2016

“Unfortunately, perceived concerns of negative environmental impacts of beef often overshadow the beneficial impacts of the beef industry,” noted Tim Oleksyn, a cow-calf producer from Shellbrook, SK and Chair of the Beef Cattle Research Council. “Beef producers are inherently motivated to be more efficient, which most often has social, economic and environmental benefits. Now that we have resource use and GHG emission benchmarks, we can move forward as an industry and more strategically target our efforts to improve.”

Canada’s beef industry currently accounts for 3.6% of Canada’s greenhouse gas production and 0.072% of global greenhouse gas production2. At the same time, lands that grow grasses and legumes for cattle sequester carbon, thereby reducing GHGs. The results of this study speak to the industry’s commitment to continuous improvement and sustainability. It will also provide important historical information to the environmental component of the Canadian Roundtable for Sustainable Beef (CRSB)’s first-ever National Beef Sustainability Assessment.

The CRSB sustainability assessment will benchmark the industry’s social, economic and environmental impact using 2013 as the baseline. The assessment will be revisited, and progress evaluated, every five years.

Results from the remaining phases of the industry environmental footprint study, including water use, biodiversity and provision of ecosystems services, are expected in 2018. The study is funded by the Beef Cattle Industry Science Cluster.

For more information, visit http://crsb.ca The Canadian Roundtable for Sustainable Beef (CRSB) is a multistakeholder initiative developed to advance sustainability efforts within the industry. The CRSB is the go-to forum on sustainable beef in Canada, dedicated to connecting a network of local, regional and national leaders in the beef industry with a common vision and mission.

The Beef Cattle Research Council (BCRC) funds leading-edge research to advance the Canadian beef industry. It manages Canada’s Beef Cattle Industry Science Cluster. The Cluster is funded by the industry’s National Check-Off and Agriculture and Agri-Food Canada with additional contributions from provincial beef industry groups and governments.

meatbusiness.ca

Q & A: DENNIS LAYCRAFT AND THE GRSB The last time Canadian Meat Business (CMB) sat down with Dennis Laycraft, he was joining in on a round table discussion with Canadian Cattlemen’s Association (CCA) president, Dave Solverson, and International Relations Director, John Masswohl, prior to his trip to Geneva to attend the WTO arbitration hearings to put an end to COOL. The trip marked a long journey for CCA, but also for Dennis, who was involved with the original document that motivated Ottawa into action.

He’s been a stalwart in the beef industry, even before his appointment to executive vice president for the CCA, and that included participating in the Canadian Round Table for Sustainable Beef when the Global Round Table for Sustainable Beef (GRSB) came into being. It was not surprising, especially considering Canada’s position in the GRSB’s global program, that Dennis had been nominated and unanimously voted to succeed former president, Forrest Roberts this past fall.

The Global Round Table for Sustainable Beef is poised to go from paper to practical application. For a president leading the charge from idea to reality, the chair could turn out to be a throne or the proverbial hot seat. Regardless, Dennis is the right guy at the right time for global sustainability.

CMB: How are you doing with this added role to your portfolio?

DENNIS: It certainly has been a busy start to the year. It’s one of those things where there’s a few more phone calls than usual and other activities that immediately appear on the surface, but its all part of the role. I knew what I was in for when I accepted.

CMB: Your nomination for the GRSB made sense considering CCA’s involvement with the Canadian Round Table for Sustainable Beef.

DENNIS: In many ways it does because we feel pretty strongly about the sustainability initiatives so it goes without saying you have to be prepared to make the commitment. As you know, we here at CCA have been very active in meatbusiness.ca

January/February 2016 CANADIAN MEAT BUSINESS 23

moving the Canadian Round Table for Sustainable Beef forward.

world you may have livestock production that is in more of nomadic style.

CMB: And not just on the Canadian roundtable but also the global platform.

So, you see what I mean when I say each country is going to be different and those standards need to be accurately reflected for those areas. Depending on what the natural resources are and the general conditions are that directly impact sustainability, you’re going to have differing priorities and needs in terms of how individual regions will be managing those resources. In other words, the bottom line is one size does not fit all, and that has been understood all along.

DENNIS: That’s right. We participated in the process to establish the global indicators and priorities.

CMB: Not an easy solution with such diverse farming globally in having to consider cultures, languages, infrastructure and other aspects that effect a region’s ability to achieve the sustainability benchmarks.

DENNIS: Yes exactly, and when we talk about the sustainability question on a global scale, it needs to be based on sound information and scientific standards, not just marketing initiatives, because some countries are going to be vastly different with their approach and methods, depending on what is relevant and practical to them. At the same time we’re aiming for that consistency, and by working closely with all the countries involved we are learning what’s going on in those parts of the world and how we can accommodate all that diverse industry into a successful global program. So by sharing our story here in Canada and the success we’ve had with sustainability so far, that creates the dialogue that points us in the right direction to achieve those goals.

CMB: I’m sure I wasn’t alone when the GRSB released the mission statement that I was immediately wondering how that was going to work on a global stage. It’s a great and noble idea to strive for but in principle, a bit impossible to achieve. But here we are, and it’s taking shape.

DENNIS: The real work that has helped shape sustainability has been based on an outcome approach strategy, whereas countries determine for themselves how they designate their own indicators that match up to the global scheme. We’re doing that right now in Canada.

For example, the issue of deforestation is quite different, let’s say, in one part of the world versus another. You actually have some areas where you have encroachment and do need to have some level of control over your forest to protect your native grasslands. So, each area is different in how they have to manage that.

Another example, here in Canada as well, is we have to consider the issues around workers and their rights and how the rules that are so ingrained here impact sustainability indicators, whereas in other parts of the 24 CANADIAN MEAT BUSINESS January/February 2016

CMB: At the end of the day, farmers aren’t so different, they’re just raising beef and trying not to damage the planet.

DENNIS: Exactly, we’re all just trying to sustain an industry and feed the planet. It also speaks to the strength of the bovine animal when you think about it. I mean you can farm them in semi-arid areas or parkland forests, hot or cold climates, even areas with poor vegetation or irrigation that grow virtually unusable plants, and cattle can turn around and use them as a high quality food item.

CMB: Since you were so involved on the ground floor with the Canadian round table, did you have a clear concept of what your new job would be with the GRSB? DENNIS: Well, even though I’m familiar with the program and the industry in general, it is a different group of people and sustainability is really at a critical point now. Once I’ve got the principles and criteria established, then I’ll have a clearer idea of how my role plays into the GSRB rolling out the program strategy, while simultaneously luring more active involvement from the regions participating in the GSRB. One of our first priorities in this coming year is to do up a strategic planning session to do exactly that.

CMB: Going from planning to actual application?

DENNIS: Yes, exactly, kind of like phase two where in any project it becomes crucial to get that engagement from members. As I say to people, these efforts will succeed or fail depending how cattle producers around the world buy into what is being developed with the GRSB. CMB: Does it feel like it has a win-win? If some countries fall short, over all it is still a positive initiative and proactive movement to a more sustainable global beef industry.

DENNIS: Absolutely and that’s the whole point to meatbusiness.ca

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January/February 2016 CANADIAN MEAT BUSINESS 25

recognizing the three pillars outlined in sustainability; social, environmental and economic. How do we create an environment of continuous innovation and improvement, while sharing our information in a noncompetitive manner? We fully believe that over time, regardless if we hit a hundred percent involvement adherence or not, the GSRB will sustain and create more demand for beef around the world.

CMB: Are you also gearing up for the National Beef Assessment?

DENNIS: Yes, we’re going through our comment period here in Canada and tabling our indicators to make sure that each step is done accurately. As well, we’re working closely with McDonald’s as they head into the phase where they are going to start purchasing a percentage of their beef from verified, sustainable operations. I think that’s a very exciting time. As you know, McDonald’s selected Canada to be the pilot project for the entire program, so to have a number of verified operations in play is a big milestone in the scheme of sustainability.

Now we have to direct our efforts to getting broader buy-in and enrollment in the program. And, it’s like you said, people have to feel there is a win-win, and I believe that operators will be able to say, “I’ve improved my operation and participating was time well spent.” So we are moving forward and were talking with producers to see what they get out of it that improves their efficiency and puts more money into their bottom lines. And that definitely is where you get a win-win.

CMB: Being president means your visibility will increase as well and I imagine your event calendar is filling up?

DENNIS: We’ve got a few key events this year. The Canadian Roundtable, who was one of the founding members of the global strategy, is holding our national event in Calgary in August and then we’re hosting the GSRB annual meeting in Banff this October. That will be a big event, lots in the planning. There will be tours showcasing the ranching, feedlots, and packing industries on the way up to Banff. We want to give visiting GRSB members who have never been here a good overview of the beef production quality we achieve here.

can get anyone to buy a product once as a rule. Our objective for our Canadian beef industry is always to keep loyal, repeat customers, and that means we have to deliver on the quality and demonstrate and adhere to our commitment to food safety – which we do very well.

When it comes to sustainability, people are looking for more information such as: how we raising our animals?

What products do we use? How do we use them safely and demonstrate an accountability to that process?

We do feel that sustainability helps us create a broader appeal for our brand, and that it is an additional feature along with our dedication to quality and marketing, which is the cornerstone to what keeps customers coming back. That said, as we do move forward and bring more and more countries into the GRSB, we find that our standard is setting the benchmark because we don’t want it done in a way that is not adhering to the codes and practices that represent quality agriculture production. We’ve seen the term sustainability used pretty loosely, so we have created strong criteria and principles around it because when and if someone does make a claim against sustainability, it will be a lot more credible than what we’ve seen in the past in a lot of other markets.

CMB: How long is your term?

DENNIS: I’m committed for a year.

CMB: What will your short term goals be?

DENNIS: Well, again that may be clearer to define following our strategic planning process in February where we’ll layout the time line for the next three to five years. I think it’s safe to say there is going to be a strong component to how we move into the regional round table approaches and get those up and running in a tangible manner. But it is exciting to be on the GRSB and seeing the level of interest and commitment were seeing from the major beef producing countries to move this forward in a cooperative way.

CMB: Do you think the fact Canada is leading the sustainability charge by being the pilot country has had a quantifiable effect on our export volumes and prices?

DENNIS: That’s an interesting question. There is more that goes into a brand than just sustainability. You 26 CANADIAN MEAT BUSINESS January/February 2016

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