Canadian Meat Business - November/December 2016

November/December 2016

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IN THIS ISSUE

November/December 2016

5 6 10 12 14 16 21 23 24

Global Meat Processing Equipment Market Growing and Growing...

Canada’s Minister for Agriculture and Agri-Food, The Honourable Lawrence MacAulay, Sits Down with Canadian Meat Business

By Scott Taylor and Cam Patterson

Industry and Stakeholders Welcome CETA Signing Donald Trump Elected President in Shock to Establishment

By Chuck Jolley

Health Canada announces new food labelling, marketing regulations Dr. John Church and His Wonderful Drones

By Cam Patterson

CRSB Announces New Strategy to Advance Sustainability in Canadian Beef Industry

By Kevin Grier

Global Conference Advances Beef Sustainability China or India: Who’ll be bigger for Canadian exports?

26 27 28 28 29 30 31 32 33

Why are so many Canadians still going hungry?

By Martha Roberts, Economic Research Specialist, Farm Credit Canada

Tyson invests in plant-based protein maker

Report on TFWP positive for Canadian beef industry

Jarvis Canada Repairs Mesh Gloves & Aprons Food waste prevention will help profitability: report

By Owen Roberts, Farm Credit Canada

CSB-System is “ERP System of the Year”

Celebrating Canadian Beef at Global Tables Beyond the big idea – redefining ‘innovation’ to include small business

By Mandy D’Autremont

My Perspective - Telling Stories

By Kate Jackman-Atkinson

GUEST EDITORIAL

November/December 2016 Volume 15 Number 6

PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca

HIT YOUR TARGET.

CONTRIBUTING WRITERS Chuck Jolley, Martha Roberts, Owen Roberts, Mandy D’Autremont, Kate Jackman-Atkinson

ALL DAY, E VERY DAY.

CREATIVE DIRECTOR Christian Kent

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FM80 Self-Cleaning Filter The self-cleaning FM80 Filter minimizes brine flow restrictions and pressure drops, as well as clogged needles and declining yields. Eliminates operator involvement, pump pressure adjustments and manual cleaning of filter screens.

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Canadian Meat Business is published six times a year by We Communications West Inc.

“Pump-to-pipe” brine delivery Fomaco’s unique “pump-to-pipe” system ensures uniform brine flow and distribution to each needle. Constant pressure is maintained as the brine flows from the pump to the needles through pipes with continuously decreasing diameters.

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We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4 Phone: 204.985.9502 Fax: 204.582.9800 Toll Free: 1.800.344.7055 E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue. ©2015 We Communications West Inc. All rights reserved.

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

Printed in Canada. ISSN 1715-6726

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Following declines in four of the five previous years, industry profits are expected to climb to a record $4.3 billion in 2016. This positive near-term profitability will be driven by improving profit margins, which are being supported by a drop in key material input prices. While numerous segments continue to perform well, key sources of strength for the industry include the grain and oilseed milling, Key Issues meat product, and bakeries and tortilla segments. In fact, each of Export Outlook - Rising food demand these three segments has posted in various developing markets and an double-digit growth in real GDP over improving U.S. economy are supporting the past year. a positive outlook for the industry.

With the Canadian economy expected to remain sluggish, and Canadian consumer spending set to slow, the food manufacturing industry will depend on foreign demand to drive production growth.

Historically, export growth within the industry has been driven by U.S. demand. Since the end of the recession, no other country has experienced a stronger increase in demand for Canadian processed foods. Going forward should be no different, with a positive export outlook for the industry largely dependent on improving demand from south of the border.

Industry Profits - Although rising competition in the food retail landscape has the potential to weigh on industry margins, industry profits will remain healthy over the forecast horizon, as production gains remain strong and softening material input prices alleviate cost pressures.

Superfoods - Many food manufacturers will look to benefit from the rising popularity of superfoods, which has been driven by consumers who are increasingly interested in natural ingredients and more nutritious foods.

However, rising food demand from various developing markets will also support the industry’s export outlook. This reflects the fact that developing countries generally have higher population growth rates and greater potential for increases in per-capita food consumption than developed countries. Although weaker domestic economic conditions mean that many consumers will remain more price conscious when it comes to purchasing food, manufacturers must stay informed of changing consumer preferences in order to retain market share within this highly competitive industry. For example, some food manufacturers will want to re-evaluate the strategic direction for their products in light of a surge in the popularity of superfoods. This could involve reformulating products or developing new brands altogether.

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The Conference Board of Canada has released a detailed comprehensive report stating the food manufacturing industry continues to be resilient in the face of a sluggish Canadian economy. While the majority of the manufacturing sector has struggled to take advantage of the tailwinds provided by a weaker exchange rate, cheaper oil, and the strengthening U.S. economy, the food manufacturing industry has seen sales continue to grow. What is more, the financial picture of the industry has improved.

As food retail competition rises, manufacturers will need to weigh the costs and benefits associated with moving on the latest trend, especially knowing that consumers may embrace a concept only to abandon it in the near future.

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A LOOK AT CANADA’S FOOD MANUFACTURING INDUSTRY IN 2016

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November/December 2016 CANADIAN MEAT BUSINESS 5

CANADA’S MINISTER FOR AGRICULTURE AND AGRI-FOOD, THE HONOURABLE LAWRENCE MACAULAY, SITS DOWN WITH CANADIAN MEAT BUSINESS With Scott Taylor and Cam Patterson

Lawrence MacAulay was a farmer. In fact, the MacAulay dairy and seed potato farm was a going concern near St. Peter’s Bay, Prince Edward Island.

However, in 1988, at the age of 42, MacAulay decided that service to his community and PEI was more important than farming, so he gave up the craft and entered politics. As the Member of Parliament for Cardigan in Eastern Prince Edward Island, he was first elected to the House of Commons on Nov. 21, 1988. In October of 2015, he won his ninth consecutive election.

beverage processing industry is the largest manufacturing industry in Canada.

In fact, food is not only big business for this country, but as MacAulay optimistically points out, the future of the sector is remarkably bright, especially along the Pacific Rim, where demand for agricultural products has maintained dramatic growth over the past decade.

Not long after, he was named Canada’s Minister of Agriculture and Agri-Food, but it wasn’t his first portfolio, by any stretch of the imagination. In fact, Mr. MacAulay’s Cabinet appointments have included Solicitor General of Canada, Minister of Labour, Secretary of State for Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency.

With the help of his staff, Canadian Meat Business asked Minister MacAulay a number of questions about Canada’s position in the Agri-Food world and the state of agriculture in the nation. The Minister was happy to discuss the latest news as well as the federal government’s vision to help the Canadian agricultural sector continue to be a world leader – competitive, innovative, safe, and well-positioned to make the most of emerging global opportunities and to create jobs for Canadians.

Q. Minister MacAulay, Brexit just keeps getting worse at this point with more EU countries teetering. This is affecting CETA - a trade pact just recently ratified. As well, the EU and their hygiene systems issue is still problematic. Could you discuss Canada’s position?

The U.K. remains a member of the EU, and together with the EU, have committed to ratifying and implementing CETA without further delay. Both the UK and the EU are important partners for Canada and we will continue to build relations with both parties. Canada’s trade and economic relationship with the U.K. following Brexit will depend on withdrawal terms and the new trade and economic relationship the U.K. negotiates with the EU. Canada and the European Union have successfully negotiated the most advanced and progressive trade agreement ever concluded. CETA will create new opportunities in the EU for agricultural producers, processors, and exporters from across Canada. Almost 94 per cent of EU agricultural tariff lines will be duty free when CETA comes into force, rising to

95 per cent, seven years later.

Now that CETA is signed, both Canada and the EU will take steps to implement the agreement according to their respective domestic processes. For Canada, this includes the passage of implementing legislation as well as bringing all regulations and policies into accordance with CETA commitments. For the EU, this includes approval of the European Parliament and subsequently the ratification of the treaty by all 28 EU Member States. We expect CETA to be provisionally applied in 2017 after the ratification process is completed by both parties.

The Comprehensive Economic and Trade Agreement (CETA) creates significantly expanded export opportunities for Canada’s beef and pork sectors. We are working closely with Canadian industry and our European counterparts to overcome barriers in order for industry to be able to take full advantage of the Agreement.

We have already negotiated a reduction in the number of export requirements and successfully gained EU approval to use some carcass washes. We will continue to work closely with industry to achieve the best possible access.

Q. The TTP is in limbo it would seem – could you give us an overview of both trade victories and setbacks this year.

Our government continues to consult Canadians on the Trans-Pacific Partnership before considering its ratification.

We promised to consult Canadians – and we are. The House of Commons Trade Committee has not yet completed its

During his successful 28-year (and counting) career in Ottawa, he has served as Critic for Fisheries and Oceans and also Critic for Seniors. In addition, he was Vice Chair of the House of Commons Standing Committee on Fisheries and Oceans.

However, in 2015, he had large shoes to fill. Former Agriculture Minister Gerry Ritz had become a familiar friend to farmers and ranchers across Canada and had developed a strong connection to the Agri-Food Industry.

But in just a little more than a year, Minister MacAulay, now 70, has made plenty of friends across Canada and has been a hard-working advocate for the men and women in Canada’s Agriculture and Agri-Food industries.

“Being a dairy farmer and a seed potato grower from Prince Edward Island, I have some idea of what farming is all about,” he said on the day he was introduced as Canada’s Minister of Agriculture and Agri-Food.

Since that day, he has travelled the country, and recently the world, advocating for Canada’s important agricultural sector.

After all, no one is more aware than MacAulay that Canada is the world’s fifth-largest exporter of agriculture and agrifood products, after only the EU, the United States, Brazil and China. He also takes time to point out that the food and 6 CANADIAN MEAT BUSINESS November/December 2016

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November/December 2016 CANADIAN MEAT BUSINESS 7

of our pork. Trade is a priority for this Government because it creates jobs for Canadians and contributes to economic growth and long-term prosperity across the country. One in five Canadian jobs depends on trade. About half of the value of agricultural production in Canada is exported.

announced an agreement with China that outlines stable and predictable trade for Canadian exports of canola to China, while collaborative work continues. The agreement provides a science-based approach for Canadian canola producers and allows trade between the two countries to continue on an uninterrupted basis through early 2020. This agreement secures a $2-billion-a-year market for Canada, not to mention jobs and economic growth back home.

Q. What was your most satisfying accomplishment in the meat industry this year, what did you aim for and failed to achieve and what are your hopes for next year?

As I have stressed at the G7, G20 and OECD, rules and science-based trade is good for our farmers, it’s good for our economy and it’s good for global food security.

In the context of the meat industry, the market access gains achieved for Canadian beef and pork were most significant.

study of the TPP and continues to hear from Canadians across the country. I am proud of the work we are doing listening to Canadians on this important issue.

We strongly support free trade as a way to open markets to Canadian goods and services, expand Canadian businesses, create good-paying jobs, and provide choice and lower prices to Canadian consumers. This is evidenced by our significant trade accomplishments this year: • At the end of last year, in December, we achieved the repeal of the U.S. Country of Origin Labelling (COOL) law to ensure a more level playing field for Canadian beef and pork coming to the U.S. • This year in September, we announced that China expanded access to Canadian exports of frozen bonein beef from cattle younger than 30 months.

• Also in September, Canada and China signed a memorandum of understanding on canola. The memorandum of understanding outlines a solution that will allow stable and predictable trade in canola to continue on an uninterrupted basis between Canada and China under existing terms of trade through early 2020.

• In March, Canada regained access for fresh poultry meat, including chicken, turkey and duck meat to Mexico. We also expanded market access for Canadian beef and beef products to Mexico in October.

• This year, beef access was also regained in Ukraine, South Korea and Taiwan.

• In January, we obtained new access for pork to India.

• In February, we restored access for live breeding cattle and swine to Georgia.

• In June, we gained new market access for Canadian breeding cattle to Turkey.

• In July, we signed a free trade agreement with Ukraine, and in October with the EU. • In September, we secured new market access for greenhouse peppers from British Columbia (B.C.) to Japan.

8 CANADIAN MEAT BUSINESS November/December 2016

•

In October, we secured market access for Alberta seed potatoes to Thailand.

Record export figures show global demand for Canada’s top-quality agricultural products continues to grow. In 2015, Canadian Agri-food and seafood exports reached an all-time high of $61.4 billion, an increase of nearly 40 per cent over the last five years.

By increasing trade and enhancing the global competitiveness of Canadian agriculture, our Government is creating more jobs, growth and prosperity for all Canadians. One in eight jobs came from Canada’s agriculture and Agri-food sector in 2014, employing 2.3 million people. Canadian farmers and processors rely on trade and benefit directly from increased market access and the development of global markets.

Q. Mexico opened trade again for beef. You have have enjoyed several trade ban victories this year. How satisfying has it been for you in your first full year on the job and how important do you view trade to Canada’s agricultural sector?

Our Government certainly continues to work hard to develop, reopen, maintain and expand international markets for Canadian meat and livestock. We understand that this puts more money in the pockets of Canadian farmers and helps grow our economy and our middle class.

Recently, we secured expanded market access for Canadian beef and beef products to Mexico. This was Canada’s most significant and longstanding agricultural trade issue with Mexico. It marks the final step in resuming full beef trade with this important trading partner. The industry estimates that this agreement will eventually boost our beef sales to Mexico to more than $200 million a year.

Earlier this fall, we announced that China has expanded access to Canadian exports of frozen bone-in beef from cattle younger than 30 months. In addition to Mexico and China, we have regained access for beef in Ukraine, South Korea and Taiwan.

Trade is critical for the success of Canada’s meat industry.

Over half of our beef and cattle is exported, and two-thirds meatbusiness.ca

We signed the Comprehensive Trade and Economic Agreement with the European Union, which means new access for our beef, pork and bison producers to one of the world’s largest markets for food.

Working side-by-side with industry, we were successful in resolving Country of Origin Labelling with the United States, helping to strengthen our integrated North American marketplace for beef and pork.

TWO IN ONE. SECOND TO NONE.

We have made great progress but there’s still work to be done. In early November, I led a major trade mission to China with the largest-ever industry delegation, including from the beef and pork sector. We will continue to work hard, market by market, to open up opportunities for Canada’s meat producers and processors.

I look forward to the exciting opportunities that lie ahead for Canadian agriculture and to working together with the entire industry from gate to plate to ensure a more prosperous agricultural sector Q. What was your biggest challenge since taking office?

Agriculture is full of challenges, but behind every challenge lies an opportunity. Opening doors in international markets is very challenging, but the results are well worth the effort – record exports for our farmers and food processors, and jobs for Canadians.

A big part of market access is working with our trading partners to ensure that trade is open, transparent, based on rules and on science. This has come up in a number of different agricultural export sectors, including beef and pork. A recent example is the dockage issue in our canola trade with China. Thanks to a lot of industry-government collaboration, in September Prime Minister Trudeau meatbusiness.ca

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INDUSTRY AND STAKEHOLDERS WELCOME CETA SIGNING Prime Minister Justin Trudeau joined European Union (EU) leaders in Brussels to sign the Canada-EU Comprehensive Economic and Trade Agreement (CETA). Once fully implemented, the historic trade pact will eliminate EU tariffs on almost 94 per cent of Canada’s agri-food products including the prospective elimination of EU import tariffs on nearly 65,000 tonnes of Canadian beef.

The Canadian Cattlemen’s Association (CCA) offered their congratulations to Prime Minister Trudeau and International Trade Minister Chrystia Freeland for successfully navigating an uncharted and complicated path through EU politics and getting the CETA signed. With the blockbuster deal now secured, the CCA will continue to ensure the Government of Canada recognizes the importance of resolving longstanding technical regulatory issues.

Under the new access in CETA, the EU has the potential to become a $600 million annual market for Canadian beef, compared with current levels of approximately $6 to $10 million per year-- once the technical regulatory issues are resolved. Left unresolved, these issues could undermine the ability for Canadian beef exporters to realize the potential of the CETA. CCA Director and Foreign Trade Vice-Chair Doug Sawyer travelled to Brussels earlier in the week with the Canadian AgriFood Trade Alliance (CAFTA) to highlight the immense potential of the CETA for the Canadian beef sector and to emphasize the need to resolve the outstanding technical barriers.

CCA President Dan Darling has discussed the CETA with Minister Freeland on numerous occasions in recent months and is confident that the Minister fully appreciates the desire of the Canadian beef industry to gain real meaningful access to the EU. “We will continue to work in close partnership with the Government to get the remaining issues across the finish line,” he said.

The nature of the unresolved issues involves the approval of important anti-microbial treatments used in Canadian packing facilities. The Canadian Meat Council, representing federally inspected packers is taking the lead on preparing the dossiers to submit to the European Food Safety Authority to demonstrate the efficacy of citric acid and peroxyacetic acid in reducing bacteria such as E. coli in red meat processing.

The CCA has been working on the CETA from the outset of negotiations in 2009 and was represented at the official signing ceremony in Brussels by CAFTA Executive Director

10 CANADIAN MEAT BUSINESS November/December 2016

Claire Citeau. The official signing means the Agreement will now move on to the ratification process and there may be implementing legislation introduced into the Canadian Parliament and the EU Parliament. It may come into effect sometime in the first half of 2017.

In keeping with the industry’s response, the Canadian Federation of Independent Business (CFIB) issued a statement congratulating Prime Minister Justin Trudeau and European Union Council President Donald Tusk on the CETA agreement.

“CFIB has been a long-time champion of the CETA, and this deal is a terrific achievement,” says Dan Kelly, President of CFIB. “It will provide a much needed boost to our economy, and benefit small businesses across Canada. A number of small businesses already trade with Europe, and welcome the opportunity to increase their trade and open up new trading avenues for their Canadian goods and services.”

The agreement addresses all aspects of the trading relationship, including goods, services, investment, government procurement and regulatory cooperation. For Canadians, it represents an opportunity to gain preferential access to the largest market in the world. Reducing barriers to trade and locking in long-term access to this key market will generate valuable new benefits for Canada’s small and medium-sized enterprises, including a reduction of tariffs and the simplification of rules and border procedures.

CFIB has travelled to Europe several times to promote the deal, including the opportunities for small and medium-sized businesses on both sides of the Atlantic. The European Union is the second-largest market for Canadian small to mid-sized businesses. CFIB’s surveys show small firms see trade with the EU as an important buffer against relying exclusively on trade with the U.S. “As a progressive trade agreement, CETA illustrates that likeminded partners can come together to improve trading opportunities,” notes Kelly. “Canada and the EU have shown astute leadership by signing this deal,” he concluded.

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DONALD TRUMP ELECTED PRESIDENT IN SHOCK TO ESTABLISHMENT

By Chuck Jolley

That was the headline in the early edition of the Washington Post on November 9, perhaps the ultimate establishment newspaper, as the American establishment held its nose and prepared to stagger forward. Real newsman Bob Schieffer, as opposed to a flock of amateurs whose qualifications are a keyboard and access to the internet, called this the strangest campaign he’s ever witnessed and he’s covered 14 of them. He’s covered Washington since 1969 and has interviewed every president since Richard Nixon. He is one of the few journalists to have covered all four of the major Washington national assignments: the White House, the Pentagon, United States Department of State, and United States Congress.

And he calls this one the strangest he’s ever seen. “And we knew it was a deeply divided nation,” he said Certainly the divisiveness and the unreasoned hate that every one of the debates generated - dating back to the first crowded Republican stage on August 6 - sets it on a par with George Wallace’s losing 1968 campaign which was driven by his strong pro-segregation policies that were rejected by the mainstream Democratic Party. His impact was substantial, winning the electoral votes of several states in the Deep South. It exposed the ugliness that was lurking just under the polite sensibilities of most of American society. The horror most people felt at what was said and done helped drive the politics of hate deep under cover.

It was so well-disguised that three years ago the Supreme Court decided we had entered a post-racial era and invalidated parts of the Voting Rights Act. Their decision let the genie out of the bottle which was poorly corked, anyway.

It gave rise to a small fire which Donald Trump’s populist rhetoric soon whipped into a nasty conflagration. The vilest members of what became known as the ‘alt right’, warmed by his coziness with hate speech, began a poorly disguised sub rosa campaign on his behalf.

He was the first candidate since Mr. Wallace to not immediately repudiate their endorsement and reject their help.

Hillary Clinton, on the other hand, entered the bloody fray carrying too much baggage, most of it artificially hoisted on her back by 30 years of unproven accusations that had her complicit in everything from embezzlement to murder. The most damaging claims had her guilty of allowing the attack on Benghazi to happen - she didn’t - and sloppy handling of government emails - she apologized. Even though the FBI decided there was no criminal intent, few on the right had it in their hearts to forgive and forget. “The fix,” they thought, was in.

During the campaign, Trump savaged women, Mexicans, Muslims, the disabled and the entire ‘swamp’ of Washington politics. Hillary did a smack down of the ‘basket of deplorables’ who backed Trump.

The result going into election eve? Hillary was ahead by just a few percentage points. Trump’s odds of winning had gone from near nil after their last debate to 35% and it quietly escalated during the last few weeks, resulting in a win that shocked everyone outside of the hard core Trump fans.

As the votes started being counted, exit polls showed the temperament of the people. A majority thought the country was on the wrong track. Democrats and Republicans dropped their blood feud long enough to agree on one thing.

To quote Bill Clinton’s 1992 team, “It’s the economy, stupid!”

But the economy could be felled by a shaken worldwide investment community.

The Dow Futures dropped almost 800 points in late trading. The S&P and NASDAQ reached their bottom limit and trading was stopped. Asian markets took a nose dive off the same financial cliff. The specter of Trump’s threat to renegotiate or rescind major trade agreements and what that would do to international trade was more risk than the big money markets were willing to take.

But it was the powerful racist thread that tilted the table toward Trump. At 1:14 on the morning of November 9 when David Duke, the ex-head of the KKK, tweeted “This is one of the most exciting nights of my life - make no mistake about it, our people have played a HUGE role in electing Trump! #MAGA” Paul Krugman, the New York Times conservative voice, wrote this in the middle of the night, even before the race was officially called: “Now comes the mother of all adverse effects – and what it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work. Effective fiscal support for the Fed? Not a chance. In fact, you can bet that the Fed will lose its independence, and be bullied by cranks.

So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.”

The real driving force behind the election, though, was the 69% of the people who told exit pollers that they were disgusted or angry about how government works.

More than anyone in the race, Trump spoke often and forcefully to their concerns.

The popular vote exposed a vicious split, a huge gap between urban and rural voters. The Ag community gave Trump the nod while the urban areas were reliably Democratic. Farmers and ranchers are an unforgiving lot, though. If they don’t see some real action from Trump - a serious reduction of federal rules and regs - they see as killing their profitability and encroaching on their land rights, for instance - their sense of retribution will be swift.

The short end for establishment agriculture, though will be Trump’s promised attack on the Trans Pacific Partnership (TPP), an agreement that groups like the National Cattlemen’s Beef Association and the North American Meat Institute fervently backed. Anti-establishment groups like R-CALF, a staunch supporter of a protectionist attitude toward international trade, should be delighted.

The effect of the election will change the way Congress will manage the debate over the 2018 farm bill. Mississippi’s Senator Thad Cochran (R), for instance, will be the most likely chair of the ag committee. He prefers traditionally styled crop subsidies while Michigan’s Senator Debbie Stabenow (D) backs revenue-based supports.

The bottom line: middle class Americans wanted change and they voted in Barak Obama because he promised change. In their opinion, he didn’t deliver so they brought in a man who promised to destroy the existing system and create a new one. Trump’s “Drain the swamp” battle cry will be a promise that must be kept, regardless of the damage.

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.

Continued on page 14 12 CANADIAN MEAT BUSINESS November/December 2016

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HEALTH CANADA ANNOUNCES NEW FOOD LABELLING, MARKETING REGULATIONS

an unprecedented time frame,” said Joslyn Higginson, vice-president of public and regulatory affairs for the Food and Consumer Products of Canada, in a statement. “This will change what’s in our products, what’s on our product packaging and how those products are marketed.”

The food and beverage industry continues to face challenges with timely regulatory approvals and costs for reformulation and innovation. Outdated regulations mean it takes longer to bring new and reformulated products to market in Canada than in other countries.

CBC News Report

The federal government is overhauling Canada’s healthy eating guidelines with a sweeping strategy that will include new rules for marketing and labelling certain foods aimed at children.

Health Minister Jane Philpott said the “iconic” Canada Food Guide has not kept up with the country’s changing demographics and lifestyles.

“The classic one-size-fits-all guide no longer meets the needs of Canadians,” she said in a Montreal speech.

Philpott said the guide must be “relevant and practical” and provide advice for Canadians whether they are shopping at the grocery store or looking at a restaurant menu. It must be individualized and adaptable for food preferences and sensitivities, she said.

Another change will eventually require labelling on the front of packages that will highlight if a product is high or low in certain nutrients such as sodium, sugar and saturated fats.

PROTECT CHILDREN FROM MARKETING In May 2010, the World Health Organization released recommendations on the marketing of food and beverages to children. It called on governments worldwide to reduce the exposure of children to advertising and to reduce the use of powerful marketing techniques employed by the manufacturers of foods and beverages high in saturated fats, trans-fat acids, free added sugars or sodium.

Today, Canada is acting on those recommendations, following the lead of Quebec, which already restricts marketing to children under the age of 13.

It will take anywhere from five to 10 years to implement the changes, after consultations with industry, stakeholders and the public.​

The last food guide was criticized because it was based on much input from industry. Philpott said stakeholders will have a say in the process, but they will not dictate the results.

“I think it’s only fair for the people who are selling food to be able to have opportunity to comment in terms of what the impact might be on them,” she said. “But they will not have impact on the advice given in the guide.”

All meetings and correspondence between stakeholders and officials in her office will be transparent and made public, she said.

Conservative Senator Kelvin Ogilvie, who chaired a committee that carried out a sweeping study on obesity in Canada, welcomed the initiatives as “very encouraging.” He called the plan to ensure the food industry remains at arm’s length in the decision process “most heart-warming.”

“It’s a total conflict of interest,” he told CBC News. “You simply can’t have the people who make the greatest degree of money selling you any product, making a final recommendation to government as to how healthy that product is.”

“Health Canada and the Canadian Food Inspection Agency must address lagging regulatory modernization quickly — before imposing new regulations,” she said.

FOOD GUIDE CONSULTATION CONTINUES Health Canada just completed a scientific review of the Canada Food Guide. It found that most of the science behind its recommendations were sound.

However the department found there were not enough distinctions between age groups, sex, activity levels, or height.

Consultations will wrap up Dec. 8, 2016.

The guide was last updated in 2007, but it remains the most requested document at Health Canada.

Philpott said the Healthy strategy has three pillars:

Sasha McNicoll, co-ordinator of the Coalition for Healthy School Food, urged the federal government to fund a school food program in every school in the country as a way to ensure kids are eating nutritious food.

She said the program would cost about $1 billion a year, and suggested the federal government kick in 20 per cent of the costs shared by the provinces, municipalities and civil society groups.

“It can improve their health and it can improve their education outcomes,” she told CBC News. “An investment now can help children develop better eating habits into adulthood and that will hopefully save in health-care costs down the road.”

Courtesy of CBC News

INFORMED FOOD CHOICES A group representing the sector said the industry is already taking steps to encourage Canadians to make more informed, healthy food choices, and said it is “keen” to ensure further steps are taken.

•

Healthy living, including promotion of physical activity and fitness and new rules to deter smoking and vaping.

“That said, this is an unprecedented amount of change that will require an unprecedented level of investment in

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Many food manufacturers took them out of their products anyway, bowing to consumer demand. But some trans fats still exist in products, and Philpott said more action will be taken to eliminate them.

“It’s the only way that food and beverage makers will be able to implement this scale and magnitude of change, and hope to remain competitive, much less grow and innovate.”

•

Continued on page 15 14 CANADIAN MEAT BUSINESS November/December 2016

THE FOOD AND BEVERAGE INDUSTRY CONTINUES TO FACE CHALLENGES WITH TIMELY REGULATORY APPROVALS AND COSTS FOR REFORMULATION AND INNOVATION. OUTDATED REGULATIONS MEAN IT TAKES LONGER TO BRING NEW AND REFORMULATED PRODUCTS TO MARKET IN CANADA THAN IN OTHER COUNTRIES.

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industry. Church and his team are breaking new ground and have found that there is more to the drone than just an eye in the sky.

We (CMB) had an opportunity to speak with John Church (JC) about his program and what his thoughts were on the future of the drone on the ranch.

CMB: How did you get into cattle sustainability?

JC: My father was a participant in the Alberta cattle industry. So, I grew up around it, got my degrees in agriculture and biological sciences, and then came to Thompson Rivers University in Kamloops, which is right in the heart of the cattle industry in British Columbia. We’re not the most widely known but we are currently the fourth largest university in the province.

40 Years of industry expertise.

CMB: What is your title?

JC: I’m an associate professor in our natural resource science department and I’m also the chair for the British Columbia regional innovation for cattle industry sustainability.

CMB: Is that where the drone concept fit into your mandate?

JC: Yes, it absolutely did. A big part of my mandate is trying to develop new technologies and new techniques to help improve the cattle ranching industry and make life easier for the ranchers, so naturally I started thinking, “how can we use this for cows?”

DR. JOHN CHURCH AND HIS WONDERFUL DRONES

By Cam Patterson

Consumer drones have become the hobby of choice for a growing number of eager video enthusiasts. The technology behind the drone and the camera payload has rapidly broken performance barriers in leaps and bounds. The explosion of digital video breaking past the HD barrier into the 4K realm has also meant the drones, or UAVs (Unmanned Aerial Vehicles), had to make technological strides with longer battery time and further flight range.

Despite the controversial reputation drones have gotten from irresponsible use, there is a practical application to these small wonders that is making an undeniable mark in the agricultural world. Companies are springing up in the U.S. and Canada with advanced photographic and sensor technology that has given the agriculture industry an edge in precision farming.

That very concept is now being tested by Dr. John Church, an associate professor at Thompson Rivers University in Kamloops, BC, who is taking the drone to new heights with significant results, working specifically with the cattle 16 CANADIAN MEAT BUSINESS November/December 2016

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CMB: What convinced you there was a practical correlation between drones and ranching?

JC: Back in 2013, I saw some kids playing with a drone in the park. It was a Parrot AR drone and I realized they could see what the drone sees. That intrigued me, the idea that you could use a drone to essentially extend your vision. To me that was ground breaking and I immediately started to think about the practical uses and how that fit into my mandate at the university.

CMB: So the first step was to focus on testing to extend rancher’s vision.

JC: Yes, that’s where it started. But I knew I could not look at it as a as a regular video but rather explore the idea of thermal to take the concept further. And if we incorporated infrared does that help you see cattle under the canopy? Can you use it to take temperature measures to find sick animals on the range or in the feedlot?

Can it detect stress? We had a lot of trials to do, but early on the possibilities were endless.

CMB: Initially your research and testing was successful, because you’ve taken it further than that already.

JC: It was very successful actually. So much so that I started to think about radio frequency ID tags (RFID) so I went to a SAIT RFID conference where there was a research chair there and they were talking about RFID and I saw the possibility with drones. By that point I had successfully used drones and found lost animals, but once I found them, I still didn’t know which animal I was looking down at. So since the drones are all GPS stabilized and therefore can provide me the GPS coordinates of the cows, then the next logical step is; could we know which animal were looking at?

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CMB: The possibilities must have been very exciting.

JC: Absolutely. The other part of this, which is covered in my grant, is the idea of using the drones as sensor platforms and doing what they call “photo orthomosaics”, essentially flying a grid and the drone basically flies autonomously and takes tons of photos of range land.

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CMB: That’s utilizing the technology on a whole new level.

tests?

JC: Yes. Originally we started doing Mosaics of farmyards and creating 3D models. But then I figured out that we could use the drone to assess the pastures and perform the Normalized Difference Vegetation Index for example. So essentially the same drone we’re using to find the cattle can measure the pasture by simply changing the payload with a multispectral camera.

JC: We routinely fly at around 40 meters.

CMB: Are you running multiple cameras and sensors simultaneously during flight?

JC: Absolutely. For example we have a thermal camera we can put on so we can enhance the drone’s search functionality. The multispectral camera operates in the “near” infrared spectrum. So with that technology we can access pasture health and measure such things as the photo synthesis ability of the plants. At the same time the camera can determine bio mass, which to me is very intriguing.

YES, WE’VE BEEN WORKING WITH DOUGLAS LAKE CATTLE COMPANY WHICH I BELIEVE IS THE LARGEST CATTLE RANCH IN CANADA. ANOTHER PARTNER IS JEFF BRAISHER FROM KINGSCLERE RANCH AND HE IS A VERY PROGRESSIVE RANCHER. BOTH HAVE BEEN VERY KEEN ON WHAT WE’RE DOING WITH THE DRONES. BUT WE’VE ALSO HAD OTHER RANCHERS CONTACT US TO FIND MISSING COWS ON THEIR RANGES. CMB: Why is that intriguing?

JC: Before the start of the growing season, when the grass is really short, you can access bio mass, then later in the season, fly the drone again and track the increased volume.

So by this we can quantify how much bio mass was actually in their pasture. Now we’re getting into precision farming practice. The other thing we’re looking towards is using the drones to find and manage weeds. The practical application to using drones is they can fly low and slow and completely stable to perform detailed tasks, which basically eliminates using airplanes or full scale helicopters for the task.

CMB: So what height are you nominally maintaining for your

CMB: What is the flight time and range?

JC: That is getting better with every generation of drone.

Advanced battery technology is increasing flight times to between 20 to 30 minutes. Even carry payload is improving substantially. The new Phantom 4 has incredible range. I believe a new generation is coming out - the DJI Mavic Pro - and those drones are able to do 7 kilometer range. Just imagine what that can do for today’s rancher.

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CMB: Well besides herd and pasture health, it could result in huge operating cost savings.

JC: Exactly.

CMB: With all the Transport Canada regulations, how do you see that affecting practical use for agriculture?

JC: They do say that flying outside of line of sight is strictly prohibited, and if you’ve flown a drone you understand how challenging that can be because you can literally be out of line of sight within 30 seconds of deployment. But I think the big issue for Transport Canada is they want to ensure safety and cautionary use; meaning don’t fly in built up areas, respect airport traffic designations, and stay away from highways. What you have to remember is the ranchers we’re working with here in BC are pretty remote and keeping to their own ranges.

CMB: Are you working directly with ranchers which takes this from hypothetical testing to actual practical application.

JC: Yes, we’ve been working with Douglas Lake Cattle Company which I believe is the largest cattle ranch in Canada. Another partner is Jeff Braisher from Kingsclere Ranch and he is a very progressive rancher. Both have been very keen on what we’re doing with the drones. But we’ve also had other ranchers contact us to find missing cows on their ranges.

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CMB: I would assume that type of search and report is basically done by camera feed to a monitor or mobile device?

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infrareds for that type of application, and there may be some instances where infrared might help, but when they go under the tree canopy, infrared still has a hard time seeing them. Another issue is that the average person has a hard time determining exactly what they’re looking at in the thermal spectrum, especially if there in among the trees.

So, honestly, the RGB seems better for searching. Typically we fly around the hundred meter mark for such searches because you cover more ground. If we see something, then we have to lower altitude to confirm what we’re looking at.

That can be time consuming. But optical zooms are coming out on the drones as well, so that is going to be a tremendous advancement for this type of application.

CMB: That is all very exciting when you think of what the science and technology of the drones and how practical they could be for ranchers and agriculture in general, but the other side of this is; you have to fly them.

JC: Yes, we crashed a lot in the early days to be honest. This was before we started using the DJI drones which are a lot more user friendly with respect to flying and operating and stabilizing.

CMB: One would think, considering the grants and funds for researching drones for agriculture use, that this really is the technology of the future.

JC: Exactly. I know the University of Saskatchewan received considerable funding for looking at crops and that is simply because drones have become a large part of the conversation when it comes to precision agriculture. Satellite imagery and airplane fly overs just can’t provide the spatial resolution that you need, nor can you get it timely enough to make management decisions. But if you have a drone – or fleet – then the rancher or farmer can fly their own pastures as often and low as they need. And there is mapping software as well that ensures you can get that precision visual to better inform your management decisions. I believe you can load your GIS map that the drone creates right into your tractor computer to guide precision spraying. This is all ground breaking.

CMB: How far can we go? Will this replace good ol’ farm know how?

JC: No. Ranchers do an amazing job of eyeballing their pastures, but that is not a science. What we would like to do is give those ranchers quantitative tools to better help them ‘eyeball’ what is going on in their fields and on their ranch.

This is key to the success of this technology.

CMB: Did the grant you received cover the concept overall or a specific component to using drones for precision cattle farming?

JC: We received over $1 million for funding and the two biggest components of the program are: developing an antenna that can expand the functionality of the RFID tag. Currently we’re testing two different tags. A passive, ultrahigh frequency ID tag that emits at a range of about 40 feet that the drone can detect. The actual tag is somewhat 20 CANADIAN MEAT BUSINESS November/December 2016

similar to what is in the animal’s ears now, but those tags only emit about 1.5 meters.

CMB: This technology is a real game changer for the agricultural industry.

JC: I can’t think of any other business or industry where you have that much value in your livestock inventory and where there are such high risk factors in this region of BC with predators such as grizzlies, wolves or cougars. My concept has always been what you could term “precision ranching” and developing the technology to ensure the rancher knows exactly where their cattle are and better monitor and maintain their grazing cycles, protection, and essentially have the right animal in the right place at the right time.

CMB: How about the idea that the drones could even be used for herding?

JC: We have tried that. We’ve done studies where we habituated the animals to the drones and we found we could fly to around 8 meters of them. Typically they will react when they feel the prop wash. Yet with some of them, I feel like I could land right on them because they had become so accustomed to the drone hovering. We have been able to herd them about 10 kilometers out using just one drone.

You mentioned cutting operating costs earlier as well, that is usually a three man job. Nonetheless we could direct them where we needed them to go.

CMB: The drone could be an invaluable tool for the rancher.

JC: We think so. How many ranchers would like to avoid the 4:00 am calving check way out in the back range when they could just stand out on the porch, even have the GPS tracking locked on a particular animal with a solar tag, and the drone just flies off, finds the animal, checks to make sure she’s not calving in the middle of the night. That would be a lot nicer than being out there with a flashlight when an infrared or thermal camera equipped drone can do it.

CMB: What is the end goal for you?

JC: Our goals are two-fold. First to have a drone that not only can access pastures with a multispectral camera to perform precision remote sensing and facilitate effective ranch management decisions with respect to pastures and herd health. Second is to develop the high frequency antenna so drones can receive long-range RFID identification signals.

I see a day where the rancher could click on the RFID number on their laptop, iPhone, or whatever device they’re using, and the drone will launch and fly and search for that specific animal and send back real time location status. To be honest we’re just scratching the surface. Imagine what we could do – and our computer science division with Dr. Musfiq Rahman is working with us on this – to use the proposed 5G network infrastructure – typically WiFi - that would provide unprecedented data communication and give the drones unlimited video streaming and flying range. If we could configure control of the drone over 5G that would be incredible.

CRSB ANNOUNCES NEW STRATEGY TO ADVANCE SUSTAINABILITY IN CANADIAN BEEF INDUSTRY The Canadian Roundtable for Sustainable Beef (CRSB) has released the findings of the National Beef Sustainability Assessment and Strategy — a two-year, ‘farm to fork’ study that benchmarks the environmental, social, and economic performance of the Canadian beef industry. The Assessment also lays out a strategy for the CRSB to advance YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 2014-05-16 1:20:17 PM sustainability efforts in the industry and measure progress going forward.

This is the first of its kind for the Canadian beef industry.

It provides a comprehensive picture of the industry’s sustainability performance at the national level, said Cherie Copithorne-Barnes, a rancher from Jumping Pound, Alberta and Chair of the CRSB. “We examined all aspects of the value chain, from farming all the way through to consumption.”

With this science-based information, the industry will be able to communicate more effectively with partners, stakeholders, and the public. Looking forward, the Sustainability Strategy will help ensure the CRSB can focus its efforts in the most appropriate areas.

“This study was truly a multi-stakeholder, collaborative effort. It turned out to be a complex task, and one that would require the commitment and expertise of many stakeholders” said Tom Lynch-Staunton, Issues Manager, Canadian Cattlemen’s Association and Chair of the Steering Committee tasked with overseeing the study. “I would like to recognize the steering committee, scientific and industry experts, Deloitte and Canfax teams, producers who completed the surveys, and others who put in countless volunteer hours, ensuring this study was as robust and comprehensive as possible. It shows the commitment of the industry to working together and how we are taking important steps towards the long term sustainability of the beef industry.”

Standard environmental life cycle topics, such as climate

For more information, visit http://www.tru.ca/

Continued on page 22 meatbusiness.ca

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November/December 2016 CANADIAN MEAT BUSINESS 21

change, fossil fuel use, water use, and air and land pollution potentials were examined in the Assessment, along with new areas including biodiversity and carbon storage. The Assessment also covered a broad range of social life cycle topics, including animal health and welfare and antimicrobial use, and economic sustainability from a producer viability and consumer resiliency point of view.

per kilogram of live weight, relatively low due to low rates of irrigation on feed and the presence of highly efficient systems. From a value chain perspective, the farming stage accounts for 74% of the industry’s blue water footprint, followed by consumption (10%); processing (6%); retail and transportation (4% each); and packing (2%).

“The results reflect positively on the Canadian beef industry,” noted Fawn Jackson, Executive Director of the CRSB. “However, there are still opportunities for improvement, as well as areas in which industry wants to continue to excel, which is why the National Beef Sustainability Strategy was created.”

SOCIAL • Industry scored well on the social impacts related to working conditions and very well on the animal health and welfare indicators.

The National Beef Sustainability Assessment was conducted by two consulting firms—Deloitte (environmental and social assessments) and Canfax Research Services (economic assessment). The process and data collected followed international best practices and guidelines, and was reviewed by a third-party panel of experts.

Tim McAllister, Principal Research Scientist, Agriculture and Agri-Food Canada stated “It is important to have a balanced approach when assessing the beef industry’s environmental performance, understanding both the impacts and the benefits. I feel like we achieved that balance with this study because we examined a very broad range of indicators. This study is grounded in science—we made sure the best data and methods were used—and the third-party review also lends additional credibility.”

The Sustainability Strategy identifies goals, key performance indicators, and action items for the CRSB to help advance continuous improvement in sustainability. The goals set forth in the Sustainability Strategy and the benchmarks from the Assessment will be reviewed approximately every five years going forward, both to evaluate industry’s progress over time and to update according to new information as it becomes available.

SNAPSHOT OF RESULTS ENVIRONMENT • Canada is a very efficient beef producer in regards to greenhouse gas (GHG) emissions, with a total footprint of 11.4 kg CO2 eq. per kg of live weight. From a value chain perspective, the farming stage accounts for 74% of the industry’s GHG footprint, followed by consumption (10%); processing (6%); retail and transportation (4% each); and packing (1%).

• Approximately 19% of edible bone free meat is wasted from secondary processing through to consumption because of trimming, spillage, discardment of expired meat, and other reasons.

•

Land used for beef production accounts for 33% of agricultural land and 68% of the potential wildlife habitat on the agricultural landscape. This land also currently stores approximately 1.5 billion tonnes of carbon.

• Antimicrobial misuse was found to be a low risk in Canada due to the uptake of best management practices, training, and measuring and monitoring.

Rich Smith, Executive Director, Alberta Beef Producers said, “The social life cycle assessment results highlight the excellent practices being implemented by the Canadian beef industry. Working conditions, animal health and welfare, and antimicrobial use are all important topics for the industry. We are very proud of the results. Now we have the information we need to make further improvements and we can focus on implementing the Sustainability Strategy.”

ECONOMIC • The beef industry is characterized by small margins at every production stage. In 2013, cow-calf enterprises covered short-term (i.e., cash costs) and medium term (i.e., including depreciation) costs. Three of the four typical farms also covered long-term costs (i.e., including opportunity costs). In this case, opportunity costs largely represent unpaid labour.

• Average long-term margins for a 200 head cow-herd provides an annual income of $17,559. Between 74% and 85% of cow/calf operations rely on off-farm income.

•

The ability of the industry to distinguish between trends and fads as well as respond to consumer demands were identified as important to the economic sustainability of the beef industry.

“There is great diversity in the beef sector with a wide range between the high cost and low cost producers. There is no one right way”, stated Brenna Grant, Manager, Canfax Research Services. “You can have low per unit costs and be profitable with high cash cost, due to the environment one lives in, with corresponding high productivity. Also you may focus on reducing cash costs if you are in a low productivity environment. We also know that there are times in the cattle cycle when margins are negative. Producers need access to risk management tools to navigate those years.”

For further information, contact Monica Hadarits at the Canadian Roundtable for Sustainable Beef at hadaritsm@cattle.ca or visit www.crsb.ca

Advancing zero deforestation in beef production, assessing the overall sustainability of the beef value chain and connecting consumers and sustainability were just a few of the topics discussed at the 2016 Global Conference on Sustainable Beef (GCSB) held October 4–7 at the Fairmont Hotel in Banff Springs, Alberta, Canada. Nearly 225 beef value chain stakeholders from 15 countries around the world participated in seminars and moderated discussions focused on advocating for continuous improvement in the global beef value chain. The Conference was co-hosted by the Global Roundtable for Sustainable Beef (GRSB) and the Canadian Roundtable for Sustainable Beef (CRSB).

“We were delighted with the mixture of people that attended the conference,” said Dennis Laycraft, president of the GRSB. “We covered a number of critical industry topics on beef sustainability and fostered discussions that brought people together. With that, I think we achieved what we had hoped for – we are bringing more interest and recognition to sustainability and the role of the beef industry.”

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The Conference, themed “Building On Experience: Regionally and Globally,” offered more than 15 interactive sessions and 50 presentations on areas of beef sustainability and continuous improvement. Dr. David Hughes, Emeritus Professor of Food Marketing at Imperial College London, began the Conference with a keynote presentation entitled “What Do You Want with Your Beef,” which addressed the history of consumer consumption and marketing of beef and current consumer expectations of the industry. Regional roundtables, including the U.S., Canada and Brazil among others, gave presentations on how they are adapting sustainable beef practices within their geographical areas and measuring the impact on a local level. Panel discussions provided a sounding board for open dialogue on beef sustainability practices and progress throughout the world.

“Canada was honored to co-host this forward-thinking conference and pleased to showcase the work being done here,” said Cherie Copithorne-Barnes, a rancher from Alberta and Chair of the CRSB. “The conference was a great

• The blue water footprint of Canadian beef is 235 litres 22 CANADIAN MEAT BUSINESS November/December 2016

GLOBAL CONFERENCE ADVANCES BEEF SUSTAINABILITY

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November/December 2016 CANADIAN MEAT BUSINESS 23

opportunity to exchange information and learn from our global partners and stakeholders.”

During the Global Conference, the CRSB launched its National Beef Sustainability Assessment and Strategy.

The Assessment is a farm to fork study examining the environmental, social and economic performance of the Canadian beef industry. The Sustainability Strategy sets goals, baselines, key performance indicators and action items to help the CRSB target its efforts and move sustainability forward.

“The sustainability of agri-food systems is critical as consumers look for safe, healthy and affordable food that is raised in an environmentally sound, socially responsible and economically viable way,” said Fawn Jackson, Executive Director of the CRSB. “The Assessment provides the CRSB with a benchmark and important communication tool as we implement the Sustainability Strategy.”

The CRSB also held its annual general meeting (AGM) on October 7. The AGM saw the election of the following individuals to Council, the CRSB’s governing body: • Bob Lowe, Canadian Cattlemen’s Association and Alberta Beef Producers, and Greg Bowie, Alberta Beef Producers, Producer/Processor Organization seats.

• Frank Middleton, Processor seat.

• Jeff Fitzpatrick-Stilwell, McDonald’s Canada, Retail and Food Service seat.

• Tim Hardman, World Wildlife Fund, non-governmental organization seat.

• Jodi Banks, Saskatchewan Ministry of Agriculture, and Sean Royer, Alberta Agriculture and Forestry were both appointed by Council to the ex-officio seats.

• Cherie Copithorne-Barnes, Chair of the CRSB. “The Canadian Roundtable has shown practical examples of beef sustainability at the conference,” added Ruaraidh Petre, executive director of the GRSB. “They are actually putting GRSB’s criteria and principles, which are very high

level, into more practical implementation on the ground.

But even beyond that, they are also demonstrating how you measure the impact.”

In 2014, the GRSB held its first ever Global Conference on Sustainable Beef in Sao Paulo, Brazil. At the Conference, GRSB adopted five core principles that define global sustainable beef including natural resources; people & the community; animal health & welfare; food; and efficiency & innovation. These principles were at the center of discussion during the Conference in Banff, as members presented efforts to contribute to sustainable practices on a local level in the production, processing, and merchandising of beef.

Membership of GRSB spans five constituency groups: beef producers & producer organizations; civil societies (non-governmental organizations); retailers; processors and commerce; as well as the regional beef roundtables from around the world. GRSB also provides the ability for observers to be a part of all functions.

“The conference is critical not only to the beef industry but to consumers as well,” said Petre. “It brings the beef industry together to share ideas and learn of how sustainable practices are being implemented around the world. It also allows us to address consumer interest around sustainable beef. Consumers may not be directly involved in the industry, but they have questions. And we want to engage in that conversation, we have been able to demonstrate that we are working on it, we are on top of it, and we are coming up with solutions and are able to show them what it looks like in a local context.”

Video presentations from the Conference will soon be made available online. For more information on the Global Conference for Sustainable Beef and GRSB, please visit www.grsbeef.org. To join the conversation online, follow #GCSbeef16.

For more information on the CRSB’s National Beef Sustainability Assessment and Strategy, visit http://crsb.ca/our-work/ sustainability-benchmark/.

CHINA OR INDIA: WHO’LL BE BIGGER FOR CANADIAN EXPORTS? Canada is a world leader in agriculture and agri-food exports.

Canadian export success relies on access to markets with consumers who can afford to pay for imported goods and to its continuing status as a healthy, vibrant industry able to exploit growing opportunities to meet world demand.

China and India, with a combined one-third of the world’s population, are two big reasons world demand is growing.

Canada is negotiating trade agreements with both.

Martha Roberts and J.P. Gervais weigh in on the potential of each country to impact Canadian agriculture and agri-food exports by 2026.

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JP Gervais says: China will have greater impact In 2015, China was Canada’s second-largest agriculture and agri-food market. Food exports have been growing since 2010, and agriculture exports since 2012, on the basis of the rising wealth of its growing middle class. They can afford imports of Canadian food and demand it. However, China’s greatest impact on Canadian businesses will come from its growing capacity to influence world prices.

3 reasons why 1. Nobody eats GDP! Canadian exports to China will continue to grow as the Chinese economy transitions to a more consumer-based economy. Higher wages won’t increase gross domestic product (GDP), but they’ll lead to higher disposable income.

Growth in food demand results from (among other things) what disposable income consumers have available and not gains in GDP. India is likely to have higher GDP, but China’s got more middle-class wealth to spend on food.

2. Chinese consumers care about food safety and quality China’s growing middle class will continue to increase the demand for Canadian food, especially high quality, premium food products. They’re located primarily in cities, where the number of urban households keeps climbing along with disposable income. The process of urbanization also leads to different food habits and preferences. China’s rate of urbanization is higher than India’s, suggesting it will spur greater food availability there -- and particularly, food supplied by Western businesses.

3. China’s food self-sufficiency policy to be replaced by market reforms The market conditions Chinese producers will face in the next ten years as a result of policy changes will trigger significant adjustments as domestic prices drop. The pig herd liquidation of 2014-15 and this year’s corn reform (to reduce enormous stocks) are examples of things to come.

Because China’s buying power is increasingly shaping both supply and demand on a global scale, it will sustain farm prices at levels that are higher than the long-term average Canadian producers have received.

growth in 2016-17. And that leads directly to continued investment and growth of its consumer base, expected to reach a threshold of 89 million households by 2025. With rising incomes and wealth, educational attainment and urbanization, India’s standard of living, including healthier lifestyles and food choices, will also improve. Canadian lentils will be even bigger.

3. India’s now better at global business A global hub of the telecommunications industry, India easily outstrips China on the communication front. Increasingly tech-savvy, well-educated and with a good command of English, India’s population will surpass China’s rate of mobile phone adoption. Plus, they benefit from a democratic government with no “Great Chinese Firewall” that inhibits widespread academic use of the Internet.

For more information, visit Farm Credit Canada at www.fccfac.ca JP Gervais, Vice-President and Chief Agricultural Economist J.P. is the Vice-President and Chief Agricultural Economist at Farm Credit Canada. Prior to joining FCC in 2010, J.P. was a professor of agricultural economics at North Carolina State University and Laval University. He also held th Canada Research Chair in Agri-Industries and International Trade at Laval. J.P. is Past-President of the Canadian Agricultural Economics Society.

He obtained his Ph.D. in economics from Iowa State University in 1999.

Martha Roberts Martha is a Research Specialist with a focus on economic performance and success factors for agricultural producers and agri-businesses. Martha has 20 years’ experience conducting and communicating quantitative and qualitative research results to a number of different audiences. She holds a Master of Sociology degree from Queen’s University in Kingston, Ontario.

Martha Roberts says: India will have greater impact India is currently Canada’s fourth-largest agriculture market and it largest market for pulse crops. India’s GDP and population growth are projected to outstrip those of every other country, emerging as the world’s next economic “superpower with potential” over the next ten years.

3 reasons why 1. India has the world’s largest group of 10 to 24-yearolds (356 million in 2014) India has one of the world’s fastest growing populations.

It’s expected to overtake China as the world’s largest population by 2026. That youthful workforce needs the tools and education that will fulfill their promise and India is reforming its educational access to ensure that happens.

The quality of India’s education system ranks 29th in the world (out of 138 countries) according to the 2016-17 Global Competitiveness Index.

2. World-leading GDP growth leads to higher income and different food choices India’s economy is expected to lead the world in GDP

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WHY ARE SO MANY CANADIANS STILL GOING HUNGRY?

By Martha Roberts, Economic Research Specialist, Farm Credit Canada

The world’s current overabundance of food means more people can afford more processed foods and expensive sources of protein.

That’s great – for the populations able to increase their calories and the variety of food they enjoy, and for Canadian agriculture and agri-food producers who supply a large chunk of global demand. Importing some of the highest values of food in the world, Canada also enjoys the world’s best offerings of safe, reliable, nutritious food.

Unfortunately, that’s not true of all Canadians.

Despite Canada’s perennial status as a country with one of the highest quality-of-life rankings, Food Banks Canada estimate 13% of Canadians face food insecurity. Over 850,000 visit a food bank every month.

The problem isn’t necessarily food availability. Low income contributes a lot to Canadians’ food insecurity.

The issue starts with income gains. The upper 10% of Canadian households saw their household income increase 47.7% when adjusted for inflation between 1981 and 2014.

Starting out with a lot less, the bottom 10% of incomeearning households increased their income 1.0% in real terms. That means households that were poor in 1981 would

have trouble by 2014 buying any particular item whose cost rose faster than the price of inflation.

IT’S NOW HARDER FOR POOR HOUSEHOLDS TO BUY FOOD Between 1981 and 2007, the price of food increased at a pace lower than the rate of inflation. Whatever food households could afford in 1981 – which, granted, may not have been sufficient – they could still afford the same in 2007.

Between 2008 and 2014 however, the cost of food increased faster than the rate of inflation. Food CPI increased 17.1%, while general inflation rose 9.7%. Between 2008 and 2015, fresh fruits and vegetables alone increased 31.1% compared to an 11% rise in general inflation.

Given the pace of food inflation during the last eight years, with the largest gain in 2015, there are now more foodinsecure households than ever.

Follow Martha Roberts on Twitter @MJaneRoberts

TYSON INVESTS IN PLANT-BASED PROTEIN MAKER Tyson Foods Inc., the largest processor of beef, pork and poultry in the U.S., has taken a 5 percent stake in plant-based protein maker Beyond Meat amid growing pressure on food companies to reduce environmental and health risks by changing the way they source protein.

Tyson Foods’ Executive Vice President of Strategy and New Ventures & President of Foodservice, Monica McGurk stated, “We’re enthusiastic about this investment, which gives us exposure to a fast-growing segment of the protein market. It meets our desire to offer consumers choices and to consider how we can serve an ever-growing and diverse global population, while remaining focused on our core prepared foods and animal protein businesses.”

Based in Manhattan Beach, California, Beyond Meat sells plant-based burger patties, heat-and-eat meals and nonGMO soy and pea protein frozen foods at grocery chains such as Whole Foods Market, Publix and Safeway.

Beyond Meat will remain an independent, privately held company led by Founder and CEO Ethan Brown who said, “This investment by Tyson Foods underscores the growing market for plant protein. I’m pleased to welcome Tyson as an investor and look forward to leveraging this support to broaden availability of plant protein choices to consumers.”

Other investors in the company include Bill Gates, the Humane Society of the United States, General Mills and venture capital firm Kleiner Perkins.

A group of 40 investors managing $1.25 trillion in assets launched a campaign in September asking 16 companies such as Wal-Mart Stores Inc., Unilever and Whole Foods to respond to the risks of industrial farming. Wal-Mart is Tyson’s biggest customer, accounting for almost 17 percent of sales for the year ending Oct. 3, 2015.

The campaign followed an Oxford University study which said $1.5 trillion in healthcare and climate changerelated costs could be saved by 2050 if people reduced their reliance on meat.

For more information, visit http://www.tyson.com/ or http://www.beyondmeat.com/ Courtesy of Reuters

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REPORT ON TFWP POSITIVE FOR CANADIAN BEEF INDUSTRY The Canadian Cattlemen’s Association (CCA) is reporting that on September 19, the Parliamentary Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) released its report on the Temporary Foreign Worker Program (TFWP).

The TFWP report made a number of recommendations that are positive for the beef sector and align with the Labour Task Force’s Agriculture and Agri-Food Workforce Action Plan. First, the report recommended that more specific program streams be developed to better reflect the labour market needs in Canada, and that the TFW cap be set at no lower than 20 per cent while being responsive to regional and sector Labour Market Information.

The HUMA committee also recommended that the Labour Market Impact Assessment application process become more efficient, more local employment data be secured and that the Cumulative Duration (4 years in, 4 years out) rule be eliminated. The report also made a number of key recommendations that intend to foster better immigration pathways to permanency.

Despite non-stop recruitment efforts across Canada, availability of full time permanent agricultural and processing labour has become a serious issue threatening the viability of food production in Canada. Canadian packing plants are deferring high value export orders to their out-of-country affiliates because we do not have the labour to process the product. This reduction in competitiveness not only affects cattle producers’ bottom line, but also reduces wealth creation in Canada.

For the Canadian beef industry, the TFWP is a critical tool that helps augment the Canadian workforce on farms and meat processing facilities. The CCA, in partnership with numerous agriculture and primary processing organizations under the Labour Task Force, is eager to work with the Federal Government to implement the TFWP report’s recommendations that support the Canadian Agriculture and Agri-Food Workforce Action Plan.

FOOD WASTE PREVENTION WILL HELP PROFITABILITY: REPORT

By Owen Roberts, Farm Credit Canada The entire value chain involved in Canadian agriculture and food production is being called on during World Food Week to work together and reduce food waste.

Gooch says how money spent on food is distributed depends on how businesses operate and interact, which can be negatively impacted by policies and regulations.

Value Chain Management International (VCMI), an Oakvillebased consultancy, says in a new report entitled, Food Waste: Aligning Government and Industry Within Value Chain Solutions, that 31% of the total food available for consumption in Canada is wasted.

“Inefficient operations, whatever their cause, eat into money that could otherwise be paid to farmers,” he says.

But voluntary agreements struck between industry stakeholders, along with harmonized government policies and regulations, could drive improvements in food production, handling and distribution, says VCMI CEO Martin Gooch.

“Farmers incur the cost of producing their entire crop, while their revenues are impacted by the unnecessary food waste that occurs along the chain,” Gooch says. “By identifying sustainable solutions to food waste, the development of more coordinated and effective value chains would provide farmers with opportunities to improve their margins and profitability.”

Currently, says Gooch, most efforts introduced to reduce food waste are focused on diverting it from one end point to another, rather than preventing it from happening in the first place. However, diversion doesn’t require fundamental change. As well, it requires limited investment to appear effective, and poses limited risk to government and industry.

Gooch realizes farmers consider themselves regulated enough, and that mandatory requirements to control food waste would likely be unpopular. He recommends voluntary agreements between industry and government to promote change.

For more information, visit http://vcm-international.com/

JARVIS CANADA REPAIRS MESH GLOVES & APRONS For Canadian meat industry companies needing repairs to damaged or worn mesh apparel, Jarvis Industries Canada, Ltd., located in Calgary can do the job. Jarvis has the expertise, equipment and technology to quickly and efficiently repair mesh apparel used in kill floor and processing procedures.

Jarvis equipment is sold and serviced worldwide through 18 branch locations, and Jarvis’ J26 Exclusive Distributors.

For more information, email Jarvis at info@jarviscanada.com or visit www.jarviscanada.com

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CELEBRATING CANADIAN BEEF AT GLOBAL TABLES Canada Beef has been celebrating love for Canadian beef around the world with a series of Canadian beef experience events taking place through October and early November in Mexico, Japan, Taiwan and China.

At the events, Canada Beef will launch an enriched global brand including a new brand mark, tagline and video for Canadian beef that further ties the premium food to the land from which it comes. Incorporating the unique traits that make Canadian beef a memorable experience, the new tagline “We put the best of Canada into our beef” links Canada’s land, hardworking people, sustainable practices and good ethics to the food itself.

CSB-SYSTEM IS “ERP SYSTEM OF THE YEAR” The industry-specific software of CSB-System AG has been selected as “Enterprise Resource Planning or ERP System of the Year 2016”. The renowned prize was awarded in October at the IT & Business Exhibition as CSB showed off this technology’s benefits and the Smart Food Factory concept.

The independent expert committee of the “Center for Enterprise Research” (CER) at Potsdam University chose CSB’s industry-specific solution as winner in the “Food and Nutrition” category. The jury recognized the industry specialization, the scope as well as the integration capabilities of CSB’s turnkey solution.

“With its solutions, CSB-System AG is a pioneer in IT, demonstrating what the digital future of food processing will look like. The benefits of the Smart Food Factory for enterprises manifests themselves especially in the areas of industrial image processing and automation,” stated jury chairman, Prof. Dr. Ing Norbert Gronau.

CSB’s turnkey solution caters to all areas of the value chain - vertically and horizontally; from primary production to consumers, and from machine to controlling. In this way, the CSB-System fully replicates all industry-specific business processes in its standard version. Given the modular structure, customers can introduce the functionalities that offer them the highest added value.

Peter Schimitzek, chairman of the board of CSB-System AG, stated “We are very proud that we were awarded by the jury. The prize stands for our 40-year expertise in the food sector. It also shows that we are on the right track with our innovations around the Smart Food Factory, as for instance our cloud services and our automation and image processing solutions.”

Vanessa Kröner, member of the CSB board of directors in 30 CANADIAN MEAT BUSINESS November/December 2016

charge of finances, sales and marketing, added: “As industry specialists, we always think of the concrete customer benefits. Above all, these are cost savings and long-term productivity increase. We are overjoyed that we have now been awarded a prize for that.”

For CSB-System AG, this is now the second award this year. In May, the company won the Fleischerei Technik Award in the “Automation” category for its industrial image processing solution “CSB-Vision”.

“In spring, we started off our brand celebration in the heart of Canadian cattle country at our culinary centre in Calgary, Alberta, the Canadian Beef Centre of Excellence. Over the next month that celebration continues internationally,” said Joyce Parslow, Executive Director of Marketing and Consumer Relations, Canada Beef. “Our sincere hope is that guests walk away with a passion for Canadian beef – the story, the brand and the premium product that it is.”

The Canadian beef brand is more than a logo or mark on a product. Canada Beef’s global brand research provided the insight that Canadian beef is a powerful, emotional connection that is an embodiment of what it is to be Canadian. When we asked consumers worldwide what Canadian beef meant to them – they told us it was the goodness of Canada itself.

“The practices reflected in the Canadian beef brand position help earn the trust of the marketplace with the reward being demand pull,” said Ron Glaser, Vice President of Corporate Affairs, Canada Beef. “This translates into many commercial opportunities for all partners in the value chain right through to the Canadian beef cattle farmer and rancher.”

In attendance at the events will be government representatives, retail, foodservice, and end use partners of Canada Beef, and influential chefs and media. The events will be a taste experience featuring Canadian beef prepared with international culinary influences.

“Through the Canadian beef experience event, we are proud to share some of the best food Canada has to offer at the global consumer’s table: Canadian beef,” added Parslow.

To see Canada Beef as the world sees them, visit canadabeef.ca/global-tables or click any of the four images below to experience each event.

In total, 25 system providers participated in this year’s competition for the ERP System of the Year. The objective of the contest is a neutral analysis and assessment of nonfunctional criteria of ERP systems in order to create more transparency and establish a better decision basis for corporate users. The participating ERP systems are analyzed and assessed by criteria of introduction methodology, customer communication / distribution marketing, research and development and concrete customer benefits, suitability to the sector, ergonomics as well as technology and scope of the integration.

The members of the jury chaired by Prof. Dr.-Ing. Norbert Gronau of Potsdam University are from the field of science (Prof. Dr. Kurt Promberger, Prof. Dr. Axel Winkelmann), neutral consultants (Helmuth Gümbel, Frank Niemann, René Schüller, Bert Stuhr) as well as media representatives (Martin Bayer, Dr. Sandy Eggert, Rainer Huttenloher, Iris Quirin).

For more information, visit www.csb.com

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BEYOND THE BIG IDEA – REDEFINING ‘INNOVATION’ TO INCLUDE SMALL BUSINESS

By Mandy D’Autremont

Google. Apple. Shopify. 3M. These companies tend to come to mind when we talk about ‘innovation’. We picture it as something that takes place in a computer lab, usually in the science or tech field. But, for most of Canada’s independent businesses, innovation does not necessarily mean developing a new app or wearable technology.

Canada’s small business owners, like you, think creatively to come up with solutions to everyday business problems and these steps are also a form of innovating. Innovation can include coming up with a new way of marketing your services, tweaking a product for a new market, or adopting a better tracking system to improve productivity. These innovations may involve using existing technologies in a new way or adopting a strategy that you have not applied before.

Limiting the definition of ‘innovation’ to new inventions exclude the vast majority of independent businesses, and unintentionally reinforces the notion that Canadian businesses are not innovative enough.

As a result Canadian businesses typically don’t see themselves as part of the conversation on innovation since the definition used by government is often limited to the IT sector and is increasingly focused on the next big idea.

The Canadian Federation of Independent Business’s (CFIB) report, Beyond the Big Idea: Redefining and rethinking the innovation agenda, based on survey results of more than 6,000 small business owners, shows that innovation takes many forms for independent businesses and is not the exclusive domain of high-tech start-ups or cluster hubs.

In fact, over 80 per cent of our members implemented an innovative change within the past five years. Ninety per cent of those in manufacturing took on at least one type of innovative activity, as did 77 per cent of businesses in agriculture. For example, one of CFIB’s agri-business members explained some of the activities they implemented to innovate: “We are dairy farmers and we installed activity monitors on all the livestock. This tracks their activity so we can get them pregnant sooner to increase production.

Also on this system it tracks their eating and rumination and temperature in order to watch their health better and easier.

[It] allows us to treat them sooner and make better decisions in their treatment and ration changes.”

These survey findings may sound surprising because even though Canadian businesses are innovating, Canada usually fares poorly in rankings of OECD-type countries’ progress or work on innovation.

Clearly, traditional conversations around innovation aren’t telling the whole story. We need to reframe these 32 CANADIAN MEAT BUSINESS November/December 2016

conversations to better reflect what Canadian businesses are doing, and what can be done to support them.

The federal government has signalled a renewed focus on innovation through their Innovation Agenda. This can be an opportunity for the government to ensure small business owners are included in the conversation. Given small businesses make up the vast majority of Canada’s economy, it only makes sense that they take a central role in the Canadian innovation agenda.

However, creating an environment that encourages innovation shouldn’t mean that the government has to create costly new financing grants and programs. Instead, it would be more effective to address the barriers to innovation, such as skilled labour shortages, red tape and taxes. Reinstating the small business corporate tax reduction plan and easing – not increasing – the burden of payroll taxes, are examples of policies that would encourage more innovation in small business.

CFIB also recommends approaching new regulations and legislation with an ‘innovation lens’ that will consider the impact of new policies on a small business’s ability to innovate.

The ideal policy model that drives innovation will help small businesses hire more people, pay higher wages and be even more productive contributors to Canada’s economic growth. Another way for government to do that would be to implement an innovation deduction that would allow businesses to claim up to $100,000 per year on new equipment and technology similar to what was recently introduced in the United States.

Innovation is not a goal in and of itself, but rather a way for businesses to increase productivity and create jobs. And we know innovation is happening every day in small business, like yours. What we really need is to build an economic environment that supports all kinds of innovation.

Mandy D’Autremont is Director, Agri-business with the Canadian Federation of Independent Business. She can be reached at mssask@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) in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

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MY PERSPECTIVE TELLING STORIES YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 2014-05-16 1:20:17 PM

By Kate Jackman-Atkinson For an industry wanting to tell its story, it’s impossible to overstate the importance of information For the agricultural industry, the time to gather that information is now. In the coming years, the industry is going to face an increasing number of outside challenges, from concerns over the environmental impacts of various agricultural activities, to the pricing of carbon that we know is coming sooner or later, the industry needs to be able to tell its story with facts and figures.

The cattle industry, in particular, has taken some public abuse in recent years. Citing concerns over deforestation to create grazing, potential adverse health risks associated with a red meat diet and animal husbandry practices that are seen as inhumane, groups are encouraging consumers to move from a meat-based diet.

“The results give the industry some very positive findings they can use to tell their story to the general public” For the industry, some of these are legitimate concerns, some are overblown, but the flip side is that very rarely are the positives of the industry brought forward. Increasingly, this must be a priority, not just a side project. Producer groups need to ensure that not only is the information there, they must also be active in telling their stories.

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In order to tell their stories, the first step is gathering information. Within the last month, two groups issued press releases announcing industry specific research that will make it easier.

The first was the Canadian Forage and Grassland Association, which provides a national voice for Canadians who produce and use forage and hay products. Their research found that the forage industry had a direct economic impact of $5.09 billion dollars and represents the country’s third most valuable crop, just behind wheat ($5.2 million) and canola ($7.3 million), based on the 2011 census.

While its value might be lower, it’s actually the largest land use sector in Canada. Many Canadians would likely be surprised to learn that cultivated forages, used for pasture, feed and seed production, totaled 33.8 million acres, or 39 per cent of Canadian land devoted to crop production.

Beyond that, the forage industry is the foundation for the beef and dairy industries, which contribute $11 billion in direct value and over $50 billion in total economic activity to the Canadian economy.

In early October, the Canadian Roundtable for Sustainable Beef released the findings of their two-year “farm to fork” study. In the study, they looked at the environmental, social and economic performance of the Canadian beef industry, as well as setting out a strategy to advance and measure sustainability efforts going forward. The organization noted that it was the first of its kind for the Canadian beef industry 34 CANADIAN MEAT BUSINESS November/December 2016

and that this science-based information would allow them to communicate more effectively with partners, stakeholders and the public.

The results give the industry some very positive findings they can use to tell their story to the general public. They found that Canada is a very efficient beef producer when it comes to greenhouse gas. They also found that land use for beef production has a number of positive external benefits, including providing 68 per cent of the potential wildlife habitat on the agricultural landscape. The land used for beef production currently stores about 1.5 billion tonnes of carbon. The blue water footprint of Canadian beef is also relatively low, thanks to low levels of irrigation to grow feed and highly efficient systems.

Canadian beef also scored well on working conditions and scored very well when it comes to animal health and welfare. On an issue of great importance to many Canadian, the study found that thanks to the uptake of best-practices, training, measuring and monitoring, antimicrobial misuse, which includes antibiotics, was found to be low risk.

Consumers increasingly want more information about the food they eat and its impact on the greater world. Agricultural groups need to have this information at their fingertips and be ready to use it.

Originally published in the Neepawa Banner and Rivers Banner

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