Our July / August issue by Meat Business Pro

July/August 2018

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July/August 2018

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Lab-grown meat is coming down the pipeline — who do you want inspecting it? By Barry Carpenter

Meat industry must prepare for the conscientious carnivore By Sylvain Charlebois

Costco cuts Polish hot dogs in the U.S. — Canadian stores are safe NAFTA Update U.S. Farmers prefer Trump do trade deals than hand them cash By David Pitt, AP News

Brazil and Argentina: Open for Canadian agribusiness By Monica Busch

McDonald’s will be the first company to serve certified sustainable Canadian beef Chick-Fil-A Selects Toronto for First International Expansion Advancing innovation in Canada’s beef sector with a $14 million federal investment Italy won’t ratify EUCanada trade deal

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Gerry Ritz among 2018 inductees to the Canadian Agricultural Hall of Fame CCA, CMC, CPC wrap up Canadian red meat sector mission to Europe Focus on resilience in turbulent times, FCC chief economist advises Canadian Researchers Develop BacteriaDetecting Strip By Ron Charles

Hog industry applauds new investment in research Egg sales soar as Canadians jump at all-day breakfast By Kyle Bakx

Investing in innovation in Canada’s egg industry Ag ministers look to growth and innovation Sustainable Beef and Forage Science Cluster launches Uncertainty keeping entrepreneurs up at night By Marilyn Braun-Pollon

July/August 2018

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July/August 2018

July/August 2018 Volume 17 Number 4 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Barry Carpenter, Sylvain Charlebois, David Pitt,Monica Busch, Ron Charles, Kyle Bakx, Marylin Braun-Pollon CREATIVE DIRECTOR Christian Kent Canadian Meat Business is published six times a year by We Communications West Inc.

LAB-GROWN MEAT IS COMING DOWN THE PIPELINE — WHO DO YOU WANT INSPECTING IT? By Barry Carpenter, North American Meat Institute Since 1906, when Upton Sinclair rattled the country with “The Jungle” and argued for oversight of meat plants, the Agriculture Department has regulated and inspected meat products. Meat products bear a USDA seal that reads “inspected and passed” — and when it comes to “inspected,” USDA means business. In fact, U.S. meat and poultry plants and products are arguably the most regulated and inspected American consumer product. Sound like “spin?” It’s not. I lead the industry’s 112-year-old trade association the North American Meat Institute and, together, my members produce 95 percent of the red meat and 70 percent of the turkey produced in America. We’re proud of the nutrition our products contain and take pride in nourishing consumers throughout North America and the world. As meat producers, we know a lot about the burdens and benefits of being USDA-inspected. Our plants that handle live animals don’t start operating in the morning if federal inspectors aren’t there, and they remain there during every minute of operation. The largest meat plants may have a dozen inspectors per shift, all overseeing food safety, accurate product labeling and humane livestock handling. Plants that process meat are inspected every day and all meat plants operate daily with the understanding that if they don’t fully comply with federal rules at all times, inspectors can — and do — stop production. There’s no question that USDA inspection is tough, as it should be, and we take pride in the fact that we have to earn USDA-inspected seal on our products. But not everyone is up for that challenge. Most Food and Drug Administration (FDA) regulated plants are inspected annually, for instance, or even less often; other industries, like health-care facilities, airplanes, and mining, receive far less oversight and far fewer inspections than meat plants.

We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4 Phone: 204.985.9502 Fax: 204.582.9800 Toll Free: 1.800.344.7055 E-mail: publishing@meatbusiness.ca Website: www.meatbusiness.ca Canadian Meat Business subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue. ©2018 We Communications West Inc. All rights reserved. The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher. Printed in Canada. ISSN 1715-6726

Many Americans mistakenly assume the FDA regulates meat, but basically the FDA regulates anything that isn’t meat — be it poultry, egg products or catfish — that’s USDA’s job. The USDA defines meat and approves product labels so consumers know a USDA inspected meat product is what it claims to be. By contrast, consider the FDA-regulated Bacon Tortilla Chips I purchased recently. After looking closely at a bag with “bacon” — the largest word on the packaging — I noticed tiny print that said the chips were made with an oxymoronic product, “vegan bacon,” which probably tastes as good as “fruitless cherry pie.” We need to call products what they are — and regulate them accordingly. Recently, a technological advance not yet commercially available called “lab grown” or “cell cultured” meat has generated buzz. Though not yet commercially available, its creators claim that it’s coming soon. There’s no doubt that the R&D teams behind these products have a large mountain to climb to recreate meat’s flavor, texture, affordability and diverse choices, but we welcome new ways to bring meat’s nutrition to consumers. Logic suggests, however, that if the product originates from livestock or poultry cells, and if the manufacturer wants to market the product as meat, then its regulatory home should be the Agriculture Department, alongside all other USDA-inspected meat products in the marketplace. They need to earn the privilege to be called meat, with the same tough regulatory oversight that is just a normal day in the world of a meat packer. Americans expect a fair and level playing field, especially in the marketplace. To the innovators of lab-grown meat, I say congratulations on your progress, but you can’t have it both ways. You can’t market the product as meat and seek to enjoy the infrequent, less burdensome FDA regulatory system. USDA’s comprehensive inspection system encompassing everything from food safety to label approval is necessary to ensure meat marketed to consumers is safe, regardless of the path it takes to market. We meet the challenge of USDA inspection every day and you should, too. Barry Carpenter is President and CEO of the North American Meat Institute.

July/August 2018

MEAT INDUSTRY MUST PREPARE FOR THE CONSCIENTIOUS CARNIVORE By Dr. Sylvain Charlebois

Sylvain Charlebois is professor of food distribution and policy, faculties of management and agriculture, Dalhousie University.

This time of year, most Canadians are enjoying summer with picnics and barbecues. Meat often plays a central role when choosing the menu for gatherings among family and friends. But it seems the meat industry is becoming increasingly controversial. Foie gras-friendly France, for example, has seen a growing number of reported anti-meat incidents. In recent weeks, several butcher shops and slaughterhouses were sprayed with fake blood. Other protesters choose to use words, voicing concerns about meat consumption. There have been no such reports in Canada yet, but something is clearly happening here. Estimates from a recent Dalhousie University study suggest that there are more than 2.3 million vegetarians in Canada and more than 850,000 vegans. What is more worrisome for the meat industry is that 52 per cent of all vegetarians are under the age of 35. As for vegans, that number is 51 per cent. The younger generation can influence our food economy much more significantly than older generations, as these numbers can only go up in time. These days, the act of becoming a vegetarian or a vegan, or other types of self-imposed special diets, points to a much politicized movement against the meat industry. The plantbased diet narrative is overpowering almost everything else. A growing number of grocers, processors and restaurant chains are now offering plant-based food options. What may make matters worse for the meat industry is what’s coming up this fall: Health Canada is due to publish its long-awaited new food guide in November. Many believe this food guide will be very different from what came before. Plant-based choices will be strongly encouraged and eating more animal proteins will be frowned upon. Switzerland just released a new food guide that encourages consumers to reduce their meat consumption by 70 per cent. It’s happening everywhere. While many Canadians may see the food guide as pointless policy, institutional buyers do look at it and so do schools. Training programs for dieticians and nutritionists will likely be modified as well. Over a generation, the food guide will ultimately change our relationship with food. All of this is happening quickly and for several reasons. Consumers are more aware of vegetable protein alternatives. We can thank social media for this, as information has become more readily available to consumers. Few current health-related studies are encouraging consumers to take in more animal proteins. And if we add environmental and animal welfare concerns 6

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to the health argument, the case for eating meat is getting weaker by the day. But most important, consumers are starting to figure out that plant-based diets are less expensive. Sources of vegetable proteins such as chickpeas or lentils are much cheaper than beef, pork, or chicken. Americans are by far the biggest consumers of meat in the world. The average American eats almost 100 kg of meat a year. Australia, Argentina and France are the other significant meat eaters. Canada is ranked 9th, with yearly meat consumption at about 70 kg per capita. Canada is also the 10th largest producer of meat in the world, all commodities combined. These figures have not moved in a few years, but many expect consumption per capita for all of these countries, including Canada, to decrease. Many in the meat industry are still in denial, but a profound societal change is happening in how we relate to animals as a food source. Our culinary traditions, including our love for barbecuing, will no doubt remain. But things are getting a little more complicated. As a result, the meat industry will need to befriend the plant-based movement in some way. It is no longer about one choice over another, but rather selecting ingredients that can co-exist and be appreciated by the marketplace. The strategy of agriculture to this point has been to dominate the market at the expense of other commodities. Consumers today expect choice, discovery and flexibility as well as good prices and convenience. The meat industry is certainly being challenged these days by more vocal groups advocating against meat consumption. Some are suggesting we ban meat eating altogether. However, meat deserves its continued place in our diets. But the meat industry should also recognize that balance is needed. Selling to the average meat lover is very different from courting a conscientious carnivore. An increasing number of consumers are speaking out and our meat industry needs to understand where the market is going. Dr. Sylvain Charlebois is the Dean of the Faculty of Management at Dalhousie University. He has authored numerous peer-reviewed publications and his research has been featured in The Economist, Wall Street Journal, Foreign Policy and the Globe & Mail. Dr. Charlebois is a member of the Global Food Traceability Centre’s Advisory Board based in Washington DC, and a member of the National Advisory Board of the Canadian Food Inspection Agency.

COSTCO CUTS POLISH HOT DOGS IN THE U.S. — CANADIAN STORES ARE SAFE Costco U.S. recently removed the Polish hot dog from its food-court menu to make room for vegan options and it’s safe to say some customers are not taking the news well. Costco is the latest among many mainstream retailers to introduce vegan options to meet growing demand. But Canadians need not panic, as the menu update doesn’t apply to stores north of the border.

“We will continue to offer both all beef hotdog and all beef polish. Have a nice day!” said one Tweet.

The move means that U.S. stores are leaning toward selling alternative items such as organic cheeseburgers, salads and fruits.

While many Costco U.S. members were excited about the addition of vegan options, Costco faced backlash for removing the Polish hot dog, a variation on its traditional hot dog, which will remain on the menu. The retailer responded to the backlash to the menu changes on Facebook, saying, “We try and keep our Food Court exciting by adding new items.”

Many U.S. customers specifically wanted the Polish hot dogs and even started a hashtag called #SaveThePolishDog. Hundreds also signed a petition on Change.org, titled, “Keep the Polish Dog on the Costco Menu.” As media reports spread north of the border, Canadians were just as panicked as their fellow American Costco friends and are now likely to be relieved to know that Canadian stores aren’t planning to ditch the Polish hot dog. Costco Canada posted messages on their social media platforms, basically ensuring their customers they are not removing or replacing any of their hotdogs.

“Not everybody gets as excited about pizza and hot dogs as I do,” Costco CEO Craig Jelinek told shareholders back in January. Costco is the latest among many mainstream brands to start adding vegan options to meet increased demand. Nestle acquired the vegan-meat supplier Sweet Earth in September and White Castle added the plantbased Impossible Burger to its menu.

July/August 2018

NAFTA UPDATE Uncertainty continues to the dog the North American and global trading environments with the governments of Canada, Mexico and the U.S. showing little commonality on when to resume the North American Free Trade Agreement (NAFTA) renegotiations, volleys of retaliatory tariffs by Mexico, Canada, Europe and others to U.S. steel and aluminum tariffs, and threats of more coming from the U.S. with automobile imports being squarely in the crosshairs. Foreign Affairs Minister Chrystia Freeland renewed the push for intensive talks to continue over the summer following the Mexican election. Mexico’s newly elected President, Andres Manuel Lopez Obrador, supports continued renegotiation of NAFTA. As he officially takes office December 1, president-elect Lopez Obrador has stated his intentions to have his own team engaged in the talks before then. Meanwhile, President Trump has stated his preference to sign a renegotiated NAFTA after the U.S. midterm elections in November.

THE CCA IS STILL ANALYZING THE NATURE OF U.S. PRODUCTS AFFECTED BY CANADA’S RETALIATORY IMPORT TARIFFS, BUT WE KNOW THAT THE CATEGORIES OF BEEF ITEMS AFFECTED INCLUDE PRODUCTS SUCH AS BEEF JERKY, COOKED MEATLOAF, MEATBALLS, BEEF PIES, STEWS, GROUND COOKED BEEF, SNACK PACK WITH MEAT, AND MIXED MEAT TV-STYLE DINNERS. FRESH AND FROZEN UNPROCESSED BEEF CUTS AND OFFAL ARE NOT AFFECTED BY THE RETALIATORY IMPORT TARIFF. CERTAIN PROCESSED PRODUCTS LIKE BEEF SAUSAGES, CORNED BEEF OR BEEF LIVER PRODUCTS ARE ALSO NOT COVERED. As that situation plays out, trade tensions are heightening. The Government of Canada recently released the final list of items from the U.S. that it will target with tariffs, as a countermeasure to the U.S. tariffs on Canadian steel and aluminum imposed by the Trump Administration in late May. Some prepared foods that have beef as an ingredient are on the final list of products that have applied a 10 per cent tariff effective July 1.

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Canada’s action is in retaliation for illegal U.S. tariffs on Canadian steel and aluminum and is coordinated with other countries including Mexico and the European Union. The full list of items is at https://www.fin.gc.ca/ access/tt-it/cacsap-cmpcaa-1-eng.asp The Canadian Cattlemen’s Association (CCA) supports the Government of Canada defending Canada’s overall interests against an illegal U.S. action. At the same time, they continue to communicate to policymakers in Ottawa that the Canadian beef sector is highly dependent on trade with the U.S. Actions to disrupt the integrated Canada-U.S. beef trade can be counterproductive to the interests of Canadian cattle producers. The CCA is still analyzing the nature of U.S. products affected by Canada’s retaliatory import tariffs, but we know that the categories of beef items affected include products such as beef jerky, cooked meatloaf, meatballs, beef pies, stews, ground cooked beef, snack pack with meat, and mixed meat TV-style dinners. Fresh and frozen unprocessed beef cuts and offal are not affected by the retaliatory import tariff. Certain processed products like beef sausages, corned beef or beef liver products are also not covered. In terms of value of trade impacted, the category including beef jerky saw $170 million CAD of imports from the U.S. to Canada in 2017 and the prepared meals category covered $42 million CAD in 2017. Devaluing any U.S. beef product can negatively affect the demand for Canadian cattle from which such products may have been produced. The two-way cattle and beef trade so far not affected by tariffs is approximately $4 billion. The CCA will continue to work with Canadian officials and U.S. allies to seek a positive path forward and avoid having further counterretaliations escalate. On a related note, the CCA has reported on stories about some Canadians advocating for consumers to exercise unofficial boycotts of U.S. products. They emphasize that boycotting U.S. beef sold in Canadian stores and restaurants is also counterproductive to the interests of Canadian beef producers.

U.S. FARMERS PREFER TRUMP DO TRADE DEALS THAN HAND THEM CASH By David Pitt, AP News

Many farmers remain critical of President Donald Trump’s tariffs and the damage done to commodity prices and markets but were appreciative that he recently offered to provide some cash to help offset their losses. The U.S. Department of Agriculture announced a $12 billion three-part plan that would borrow money from the U.S. Treasury to pay producers of soybeans, sorghum, corn, wheat, cotton, dairy, and hogs. The USDA also will buy the surplus of commodities that would otherwise have been exported and distribute them to food banks and other nutrition programs. That will cover fruits, nuts, rice, legumes, beef, pork and milk. The third prong of the plan is to help farm groups develop new export markets. “This is a short-term solution to allow President Trump time to work on long-term trade deals to benefit agriculture and the entire U.S. economy,” said Secretary of Agriculture Sonny Perdue.

highest number on that date since records began in 1964. “Experience has shown that trade wars and all this tit-for-tat is devastating to the (agriculture) economy and drives prices down,” said Richard Schlosser, who grows soybeans, corn and wheat in Edgeley, in southwest North Dakota. He called the Trump’s tariffs “government interference at its worst.” Schlosser said he had been “transitioning” his farm to his son, but the future doesn’t look good for young farmers now, he said. “My son has a good job outside of farming,” Schlosser said. “I told him he better keep that job.”

continued on page 10

The money comes from the Commodity Credit Corporation, a USDA agency founded in 1933. It has authority to borrow up to $30 billion from the Treasury at any one time to “stabilize, support, and protect farm income and prices.” Farmers said they would rather have Trump settle the trade disputes with China, Mexico, Canada and the European Union and get free trade flowing again. “A Band-Aid doesn’t cure an illness, but it might make it temporarily better,” said Dave Struthers who grows corn, soybeans and hay on a 1,100-acre Iowa farm near Collins, about 30 miles (48 kilometers) northeast of Des Moines. He also sells about 6,000 pigs a year. Reaction from trade partners to Trump’s tariff policies have pushed soybean prices about 18 percent lower and corn and pork prices down 15 percent from the time Trump began discussing tariffs this spring. China is the largest buyer of U.S. soybeans and one of the largest importers of U.S. pork. U.S. farmers are expected to grow 14.2 billion bushels of corn this year and 4.3 billion bushels of soybeans, down some from last year but still huge crops. There were 73.5 million pigs on farms as of June 1, the

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The temporary aid is more of an admission by the president of the “huge impact” the trade war is having on farmers, said Mark Watne, president of the North Dakota Farmers Union, which has more than 45,000 members in the state. “I can’t argue they are trying to help us but how long will this last?” said Watne. “Are they truly going to get us a solution that will make things better?” Watne prefers better crop subsidies and other revenue loss protections in the massive federal farm bill that is being hammered out in a House-Senate conference committee, to guard against retaliatory tariffs on U.S. agriculture exports. Some farmers were more skeptical of the administration’s actions, believing the midterm elections in November had more to do with the announcement than concern for farmers. “This is an election ploy. And we as farmers are playing the dupes again in this whole process,” said Wisconsin farmer Michael Slattery who grows soybeans, corn, wheat and alfalfa with his wife on 300 acres in Maribel, Wisconsin.

Slattery said he didn’t support Trump in the last presidential election. Some farmers expressed concern that few details have been released. The USDA said it planned to roll out some of those details around Labor Day and the program would begin to make payouts after the fall harvest. “I don’t want free money. I don’t want bailouts. I want trade. Trade is what works,” said Wanda Patsche, who grows corn and soybeans and raises pigs near Welcome in southern Minnesota with her husband, Chuck. Mark Jackson, who farms with his son and his brother on 2,000 acres in southeast Iowa near Oskaloosa was supportive of Trump’s efforts to realign global trade to an improved balance for the United States. He said he agrees with the broader goal of balancing trade especially with China. “There is a tendency for a little bit of Trump piling on,” he said. “We’re trying to sort through a lot of the chaff to get down to the real heart of the issue to make this thing a little more equitable.”

BRAZIL AND ARGENTINA: OPEN FOR CANADIAN AGRIBUSINESS By Monica Busch, Senior Regional Manager, Export Development Canada

With challenge comes opportunity. That may be the best way to describe the business climate for Canadian agriculture firms in South America, specifically the continent’s two largest economies, Brazil and Argentina. With a combined population of more than 255 million and more developed industrial sectors than other South American countries, Brazil and Argentina have become key trading partners for Canada. Over the past 10 years, Canadian trade with Brazil has grown 26%. Canada’s trade with Argentina increased almost 18% between 2016 and 2017. Brazil and Argentina offer growing opportunities for Canadian firms, specifically in the agribusiness and agri-food sectors. Brazil, for example, has increased agricultural production by more than 400 per cent over the past 20 years. Many consider the country an agricultural powerhouse that will play a key role in global agricultural output as the world population grows to an 10

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estimated 9.5 billion by 2050. High-tech agricultural equipment: a niche for Canadian firms There is heightened demand for new, high-technology equipment in the agribusiness industry, specifically in precision agriculture, which presents opportunity for Canadian companies. Canadian firms doing business in Brazil and Argentina have carved out a niche by providing products and technology that can’t be sourced locally. Canadian companies work in partnership with local firms, providing precision agriculture solutions such as harvesting headers and onboard technology. Most of the largest international agricultural equipment continued on page 11

producers are based in Brazil. By offering a high-end technological solution to a local challenge, Canadian companies have a competitive advantage in the region. Tariffs to infrastructure: 3 challenges in South America Canadian firms that specialize in agribusiness have been working hard to establish a presence in Brazil and Argentina, but not without some challenges. 1. Tariff barriers. Brazil and Argentina are both committed to domestic production and local content rules that penalize foreign companies in the form of high tariffs. Import taxes are approximately 13.5 to 14 per cent, respectively, across industrial sectors. 2. Transportation costs. In Brazil, additional freight and insurance levies are added to shipments from other countries, making the landed cost of the product much higher. 3. Underdeveloped infrastructure. Inefficient infrastructure also creates logistical hurdles and additional costs for companies trying to move goods within the countries. Poor quality roads create challenges when trucks are the primary form of cargo distribution. As an example, the recent 10-days-long truck drivers’ strike in Brazil resulted in substantial losses for the agriculture and meat exporter sectors. How a new trade deal will benefit Canada Canada is in talks with a group of South American companies that could further bolster Canadians’ competitive advantage in the region. Mercosur is the world’s fourth-largest trade blog, comprised of Brazil, Argentina, Paraguay and Uruguay. The first round of negotiations was held in Ottawa in March. When finalized, an agreement could see the elimination of tariffs in many sectors. This would give Canadian firms access to a market of 260 million people, with a combined Gross Domestic Product (GDP) of $3 trillion.

for partners or other relationships. EDC’s Market Entry Advisor Brazil information provides a number of top-line details. 2. Create your value proposition. What can your company offer that’s not currently available in the market? Companies cannot always expect immediate success. It takes time to develop relationships. But with a clear value proposition and a sustainable, long-term business model, you will start out on solid footing. 3. Establish a local presence. Having an on-the ground presence, especially with a local partner or distributor is solid best practice. Many companies will expect replacement parts and after-sale service readily available in the local language. 4. Boost your national brand. The Canadian brand is widely accepted, known for quality, and firms aren’t perceived as overly aggressive, which goes far toward good relationship-building in Brazil and Argentina. 5. Establish competitive payment terms. Paymenton-demand transactions are a thing of the past in international trade. Offering more flexible payment terms to clients can help boost your competitive position. For more information, visit www.edc.ca

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In 2017, bilateral trade between Canada and Mercosur countries accounted for 8.9 billion. 5 ways to break into agribusiness in Argentina and Brazil 1. Conduct market research. Having a good idea up front of your entry strategy will lead to better overall success. At this stage, identify customers, competition and potential partners. In Brazil and Argentina, Canadian firms of various sizes are finding success by working with existing suppliers, which reduces the cost of products in the market. EDC and the Trade Commissioner Service (TCS) can help by offering an in-depth overview of the market, applicable taxes and tariffs, and any possible leads

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MCDONALD’S WILL BE THE FIRST COMPANY TO SERVE CERTIFIED SUSTAINABLE CANADIAN BEEF In a major nod to the quality of Canadian beef, McDonald’s Canada announced today that it will be the first company in Canada to serve Canadian beef from certified sustainable farms and ranches, beginning with its Angus line-up. McDonald’s® Canada will be the first company to serve Canadian beef from farms and ranches certified sustainable by leading industry experts. FACTS •

SUSTAINABILITY CLAIMS WILL BE AWARDED BASED ON A MINIMUM OF 30 PER CENT OF THE SUPPLY CHAIN’S BEEF ORIGINATING FROM CRSB-CERTIFIED FARMS AND RANCHES.

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MCDONALD’S CANADA SOURCES 100 PER CENT OF THE BEEF FOR ITS HAMBURGER PATTIES FROM CANADIAN RANCHES AND FARMS, PRIMARILY IN ALBERTA AND SASKATCHEWAN.

•

MCDONALD’S BEEF PATTIES CONTAIN NO ARTIFICIAL ADDITIVES, FLAVOURS AND PRESERVATIVES AND ARE SOURCED 100% IN CANADA.

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THE CRSB HAS DEVELOPED THE CERTIFIED SUSTAINABLE BEEF FRAMEWORK TO DRIVE THE ADVANCEMENT AND RECOGNITION OF BEEF SUSTAINABILITY IN CANADA THROUGH A WORLD CLASS FARM AND RANCH LEVEL CERTIFICATION PROGRAM, AND TO RECOGNIZE AND PROMOTE SUSTAINABLE BEEF PRODUCTION PRACTICES, SUPPORT CONTINUOUS IMPROVEMENT AND FACILITATE COMMUNICATION WITH THE PUBLIC.

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This means that for the first time ever, McDonald’s 3 million daily guests will soon be able to enjoy Angus beef sourced from farms and ranches certified sustainable according to world-class standards set by the Canadian Roundtable for Sustainable Beef (CRSB). More specifically, over the next 12-months, more than 20-million Angus burgers will be sourced according to the CRSB standards. People will also soon see a new Canadian Roundtable for Sustainable Beef (CRSB) certification logo alongside McDonald’s Mighty Angus® line-up on the menu. This is all possible because McDonald’s Canada has positioned itself to meet the requirements of the CRSB’s Certified Sustainable Framework. The CRSB Sustainable Beef Production and Processing Standards include more than 60 indicators across five principles for beef sustainability and are upheld by-on-site certification audits. For example, a few of the indicators a farmer or rancher must achieve include: • Grasslands and grazing are managed in a way that maintains or improves soil health and protects watershed areas. • Outcomes related to feed/water, animal care, shelter, herd health and handling procedures are met as per requirements outlined in Canada’s Code of Practice for the Care and Handling of Beef Cattle. “This is a big step in our beef journey – not just for McDonald’s Canada and the Canadian beef industry, but around the world,” said John E. Betts,

NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA Global public health organization showcases services for Canada’s growing and fast-changing food industry

President and CEO, McDonald’s Canada. “Without NSF International Canadaand recently launched a work new the support from the in industry the incredible website www.nsfcanada.ca to give Canada’s growing Canadian ranchers do every day, beef sustainability and complex not foodbe and beverageThis industry easy access in Canadawould possible. partnership, to the global public health organization’s expertise and combined with McDonald’s scale, is creating change services in Canada. The website combines information and encouraging responsible beef production for years on the depth, experience and capabilities of the NSF to come that will benefit all Canadians.”

establishment of a clear vision for beef sustainably.» accredited International Association for Continuing

The five CRSB categories encompass: Education andindicator Training (IACET) site. Topics include HACCP,

safety and quality, GFSI • food Natural resources, such asbenchmarked ensuring soilstandards, health, regulations (including FSMA), food science, food packaging, water supply, and wildlife and plant biodiversity. food microbiology and ISO standards. Training modalities • People and community, include ensuring a safe work include eLearning, on-site, customized and open enrolment. environment and commitment to supporting local International Canadian office with access to NSF Additionally, the website includes information about communities. globalof services dedicated to food safety As a International’s founding member the CRSB, established in management system registrations foras the food, automotive, • Animal health and welfare, such adequate feed quality. 2014,and McDonald’s Canada was a driving force and environmental, security, medical devices, and access toinformation drinking water and minimizing animal strong supporter in developing Canadian Evolving regulations across countries andstandards increasing aerospace chemical industries, as well as for Ontario stress andand pain. for beef sustainability. The CRSB consists of a supply complexities associated with a globalized food drinking water programs. • Food, such as ensuring food safety and beef quality, diverse group of stakeholders representing academia, network present challenges for NSF International clients in Visit the new Canadian website www.nsfcanada.ca to review the food including training and atregistration in the program. Canada and around the world. The new Canadian website government, food and agricultural businesses, services capabilities video, find asuch list of Canadian food experts, • safety Efficiency and innovation, as recycling and learn about upcoming events and global news releases, submit a question offersassociations, expertise and services to help navigate producer processors likecompanies McDonald›s 1 2014-05-16 1:20:17 PMor read energy YesGroup_CanadianMeatBusiness-Qtr-pg.pdf efficiency programs. an FAQ. these challenges, certification supplier, Cargill, retailincluding and foodservice asand wellauditing, as NGOs consulting, technical services, education, like the World Wildlife Fund U.S.,training Natureand Conservancy food and label compliance, packaging, of Canada and Ducks Unlimited Canada.and product and process development.

“Cargill recognizes that consumers want to know NSF International’s Canadian website provides information that their beef is raised and processed responsibly,“ on the following services: said Pete Richter, Cargill global foodservice group Certification & auditing: safety audits leader. “And we believe the Third-party frameworkfood developed by and certifications, which are integral components the Canadian Roundtable for Sustainable Beef canof supplier selection andthey regulatory compliance. Accurate provide the information are seeking. By applying audits are the first step toward successful verification this framework to our Canadian beef supply chain, of a company’s food safety system, providing improved we look forward to becoming the first major Canadian brand protection and customer confidence. Certifications processor to provide farm-to-fork traceability of beef and audits are available for animal and produce in the from certified sustainable sources.” agriculture industry, GFSI certification and management Sourcing sustainably doesn’t just benefit McDonald’s; system registration. the entire ecosystem stands to gain. As more producers A full-service team approach providing haveConsulting: their operations certified sustainable, McDonald’s technical resources, expertise and for a wide range looks forward to growing the volumeinsight of available beef of food safety and quality services. NSF International sourced from CRSB-certified sustainable operations, finished product inspection testing for food, with provides other companies also joining the journey. packaging and non-food testing for rapid analysis and

insight to protect thebusiness. brand, technical supportare services “Sustainability is good Consumers from on-site temporary or permanent technicaleating staffing increasingly inquisitive about the food they’re placements, and types of consulting. and want to know it various was produced in a socially responsible, economically viable and environmentally Technical services: A one-stop solution for food product sound manner,”and said Cherie Copithorne-Barnes, compliance formulation, from concept to finished Rancher and including Chair of food the CRSB. “As we all strive product, and label compliance, packaging, to make continuous improvements, to product and process development,it’s andimportant shelf-life and recognize achievements product evaluation. made along the way. We celebrate with McDonald’s Canada on their significant Training and education: Training for the global food progress and acknowledge their role in supporting the and beverage industry across the supply chain as an meatbusiness.ca

July/August 2018 13 September/October 2017 CANADIAN MEAT BUSINESS 23

CHICK-FIL-A SELECTS TORONTO FOR FIRST INTERNATIONAL EXPANSION Chick-fil-A, the #1 chicken restaurant in the United States, has announced that it will open its doors in Toronto in 2019. These will be the company’s first franchisee-owned restaurants outside of the United States “Toronto is a great city – with diverse and caring people and a vibrant restaurant culture with a deep talent pool,” said Tim Tassopoulos, president and chief operating officer, Chick-fil-A. “These strengths align perfectly with Chick-fil-A’s focus on community giving, delivering a premium product, and working with passionate people that can grow with our company – making Toronto the perfect choice for international expansion.” Chick-fil-A is known for its handcrafted food made fresh in each location’s kitchen. The chicken, which will be Canadian sourced, is 100% whole breast meat, without any fillers, hormones, or additives. “The company has made a commitment to build longstanding partnerships with local suppliers Chick-fil-A’s restaurant owners are the secret sauce of the company’s model, which is a differentiator in the quick service restaurant industry. Operators are full-time, handson business leaders who typically only own one restaurant.

They are empowered to shape their restaurants from the front line every day, and their responsibilities include restaurant management, staff mentorship, and making choices about how best to serve the community. As a local small business owner, the Operator is incented to invest in talent through competitive pay and benefits along with training and leadership opportunities for staff. Chick-fil-A is currently recruiting Operators for its Greater Toronto Area (GTA) locations offering a low economic barrier to entry for ownership ($15,000 CAD compared to $100,000 to $300,000 for many Canadian franchises). Sixty per cent of Chick-fil-A Operators come from within the company every year. Chick-fil-A is focused on expansion in the GTA, with plans to open 15 stores in the next five years, creating 50 to 75 new jobs per location. The company has made a commitment to build long-standing partnerships with local suppliers and to find the perfect neighbourhoods in which to grow.

ADVANCING INNOVATION IN CANADA’S BEEF SECTOR WITH A $14 MILLION FEDERAL INVESTMENT The Canadian beef sector is a strong economic driver, accounting for $9 billion in farm cash receipts in 2017. Exports of Canadian beef and cattle totalled nearly $2.41 billion in 2017. Canadian beef producers are working hard to ensure they continue to create good, middle-class jobs while expanding markets for their safe, high-quality products. While attending the Calgary Stampede, federal Minister of Agriculture and Agri-Food, Lawrence MacAulay, announced an investment of up to $14 million to the Beef Cattle Research Council (BCRC), a division of the Canadian Cattlemen’s Association (CCA), under the Canadian Agricultural Partnership, AgriScience Clusters. The BCRC will contribute up to an additional $7.6 million, for a total investment of up to $21 million. “Canadian farmers and ranchers know the importance of innovation in maintaining their competitiveness, and that’s especially true in Canada’s beef sector. Investments in research deliver real results, and help to ensure our beef farmers continue to raise top quality beef that consumers have come to expect,” stated Minister MacAulay. “Today’s investment will help our

industry capture the exciting opportunities that lie ahead around the world.” Funding for the Sustainable Beef and Forage Science Cluster will be used for activities focussed on improving the sustainability of Canadian beef and forage production, growing beef exports and supplying highquality Canadian beef to people around the world. The Beef Cluster was funded under two previous agricultural policy frameworks. The previous research activities, which looked at genetics, feed efficiency, forages and animal health, have contributed to a strong and more competitive beef sector and sustained producer profitability. Ryan Beierbach, Chair of the Beef Cattle Research Council and rancher near Whitewood, SK, said continued on page 15

July/August 2018

“The science-based knowledge DF: I don’t think being on the island and innovations that result from this one has really impacted us negatively investment responsibly way orwill the work other. to We’ve traveled a lot, increase production while enhancing met a lot of other farmers and livestock industry competitiveness and producers in other parts of public Canada, and trust, we advancing the economic, all seem to have the samesocial issuesand environmental sustainability of Canada’s and same concerns. beef sector. A prosperous beef sector not CMB: I understand that your farm only benefits farmers and ranchers across was the first in Atlantic Canada to be Canada, it maintains grazing lands that involved in the TESA program. are important to preserve for their role in DF: Yes, I think we biodiversity, were the first and farm carbon sequestration, wildlife habitat.” east of Ontario as far as I understand. I’m not sure why the eastern

This announcement was part of the associations wouldn’t have previously Minister’s cross country ‘Growing nominated anybody because there are Canadian Agriculture’ tour which started many farms here on PEI doing every in Quebec in mid-June and ended in B.C. bit as much as we are as to attain a in mid-July. high level of sustainability. Anyway,

we weremet verywith surprised whenprocessors the PEI The Minister farmers, Cattleman’s Association nominated our and industry leaders, and participated farm. in rural agricultural events, to highlight strategic federal agricultural CMB: And then you were investments attending the and programs including those Canadian Beef conference in recently Calgary launched under the Canadian Agricultural and you won. Partnership—and how they will help DF:an Yeah! was a very moment to build evenThat stronger and nice more for us. But I don’t like to use the innovative sector for Canada. word win actually. However, being

Quickrecognized Facts for our commitment was a real honour. If you wantcattle to know • There were 11.52 million and the truth, it was pretty humbling calves in 2017 onaapproximately As I said to ranches CBC when 74 experience. thousand farms and in they phonedFarm me after thereceipts conference, Canada. cash fromI was floored, really couldn’t it. thejust sale of cattle and calvesbelieve in 2017 totalled $9 billion. CMB: So now that you have been recognized, do you think that will

• The Canadian Agricultural Partnership draw more attention and garner more is a five-year, $3 billion investment nominations out of Atlantic Canada by federal, provincial and territorial going forward? governments to strengthen the DF: Absolutely. We’ve gotten a lot agriculture and agri-food sector. ofPartnership good press highlighting the island The builds on Growing cattle industry. I’m positive you’ll see Forward 2, the previous five-year more farms in our neckon of March the woods agreement that ended 31, 2018. nominated next year. And I have to give the Canadian Cattleman’s Association

• The Partnership includes aprograms recognition for choosing farm from and activities to enhance Prince Edward Island. Wethe are small competitiveness of the beef sector through players in the national industry research, science and innovation. and I think it was a real credit to their Through the AgriScience organization to recognize Program, us. They a five-year, up up to $338 million treated all theto nominees royally and it initiative, the government is supporting was a real class act. It was a wonderful leading edge discovery and applied experience. science, and innovation driven by industry research priorities.

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ITALY WON’T RATIFY EU-CANADA TRADE DEAL According to a recent statement from Italian Deputy Prime Minister Luigi Di Maio, Italy will not ratify the European Union’s free trade agreement with Canada although Canadian officials played down the threat to the accord, which mostly took effect last year. “Soon CETA (the Comprehensive Economic and Trade Agreement) will arrive in parliament and this majority will reject it and it will not ratify it,” Di Maio said at a farmers’ association gathering in Rome. “If so much as one Italian official… continues to defend treaties like CETA, they will be removed,” added Di Maio, who leads the anti-establishment 5-Star Movement, which governs the country with the right-wing League. The CETA accord has been provisionally in effect since September. It needs to be approved by all 28 EU member states to fully come into force, and can theoretically be scuppered altogether if an EU member country formally notifies Brussels that it has permanently rejected it. But Canada says 98 per cent of the tariff and trade barrier reductions under the agreement have already taken effect. A Canadian government source played down the Italian remarks, saying they reflected domestic politics and the challenges of managing a coalition of right- and left-wing parties. “We are engaged but do not plan on escalating in any way an issue that has more to do with (Italian politics) than a fundamental issue with the two per cent of CETA left to be ratified,” said the source, who asked to remain anonymous given the sensitivity of the situation. The 5-Star/League government, which took office on June 1, vows to take a hard line to defend Italian speciality foods. Of the 28 European Union countries, Italy has the most food products with PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication) labels. These include Parmigiano Reggiano cheese and Prosciutto di Parma ham. Under CETA, Canada has recognized more than 40 Italian PDO and PGI labels out of a total of 292. CETA has already removed tariffs from a large number of goods and widened access to Canadian beef in Europe and EU cheese and wine in Canada. 16

July/August 2018

“Wrong and risky” The CETA ratification has not yet been scheduled for debate by the Italian parliament and will certainly not be discussed before the August summer recess. When giving their backing in October 2016, the EU states said that CETA’s provisional application would continue, unless its ratification failed “permanently and definitively” because of a constitutional court ruling or after formal notification from an EU government. Apart from the small fraction of barriers that remain up, an investment dispute settlement mechanism also will not take effect unless the treaty is fully ratified. Hosuk Lee-Makiyama, director of trade think-tank ECIPE, said Italy did pose a significant threat to CETA, but the Commission could ultimately take the matter to court, arguing that the EU could continue to apply all parts of the agreement aside from investment dispute settlement. CETA supporters say it will increase trade between the partners by 20 per cent and boost the EU economy by 12 billion euros (C$18.4 billion) a year and Canada’s by C$12 billion. Some EU farm associations and critics have expressed concerns about the threat of rapidly rising pork and beef imports from Canada. Italian agricultural lobby Coldiretti has called CETA “wrong and risky” for the country. CETA is not the first deal Italy has called into question. It delayed the trade deal with South Korea over concerns it would affect Italy’s motor industry. A dispute over Australian duties on Italian tinned tomatoes also undermined initial trade talks between Europe and Australia. However, the country recently backed a planned EU trade deal with Japan. Courtesy of Reuters

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GERRY RITZ AMONG 2018 INDUCTEES TO THE CANADIAN AGRICULTURAL HALL OF FAME

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The Honourable Gerry Ritz is among the nominees to be inducted into the Canadian Agricultural Hall of Fame Association later this year. The association honours and commemorates Canadians for their contributions to Canada’s agriculture and agri-food sector. Ritz was nominated for the honour by the Canadian Cattlemen’s Association (CCA), the Alberta Wheat Commission (AWC) and Alberta Barley.

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A farmer himself before entering politics in 1997, Ritz brought an intimate understanding of agriculture to government. By living his catchphrase of ‘putting farmers first,’ Canada’s agri-food trade would increase nearly 80 per cent during his tenure as Agriculture Minister and the sector rightfully gained prominence as a significant contributor to the Canadian economy. He was instrumental in encouraging talks that would lead to the beginnings of trade deals of benefit to the beef industry, like the Canada and Europe free trade deal and the TransPacific Partnership – known today as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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As Agriculture Minister between 2007 and 2015, under former Prime Minister Stephen Harper, Ritz successfully fought for fair and open access for producers and exporters and against unscientific trade restrictions on Canadian products. Understanding the importance of global markets to farmers who produce worldclass beef and cattle, Ritz travelled extensively to open, restore or expand market access for Canada’s high-quality cattle and beef products using a science-based approach to trade. For the beef and hog sectors, Ritz led the battle against U.S. Mandatory Country of Origin Labelling (COOL). He stood ‘shoulder to shoulder’ with beef producers as Canada pursued all options available to resolve the dispute, including the establishment of a World Trade Organization compliance panel on COOL. “Minister Ritz’s open and genuine collaboration with the beef industry, asking advice on where he could boost advocacy efforts or outreach efforts on difficult issues, effected positive results that remain appreciated by the industry today,” said CCA President David Haywood-Farmer in a joint release with the commissions. Congratulations to the other 2018 inductees into the Canadian Agricultural Hall of Fame: Ted Bilyea, Peter Dhillon, Wilf Keller, and Larry Martin. The 2018 Canadian Agricultural Hall of Fame induction ceremony will be held in Toronto, Ontario as part of the Royal Agricultural Winter Fair on Sunday, November 4, 2018. July/August 2018

BEST DEFE CCA, CMC, CPCTHE WRAP UP CANADIAN RED MEAT OFFE A STRONG PROMOTING SECTOR MISSION TOTHE HEALTH BENEFITS EUROPE By Ronnie P. Cons

Red meat is often wrongly portrayed as being unhealthy. some in the media as unhealthy or not environmentally fr

A recent mission to Europe undertaken by the Canadian Cattlemen’s Association (CCA), Canadian Meat Council (CMC) and Canadian Pork Council (CPC) sought continue Vegan, fish and other non-meat dietsto have been proposed as healthier alternatives. result of this onslaught of negative to build cooperation and collaboration for commercially viableThe two-way trade of meat meat messages has influenced many families to cut back on products between Canada and the EU as envisaged by the Canada-European Union their meat and poultry purchases. Perceptions may reality but Comprehensive Economic and Trade Agreement (CETA). truth trumps misinformation. Parents and other consumers In each country, the Canadian associations sought to meet with the farmer organizations, the meat processing/exporting companies and the government officials responsible for trade, agriculture and for meat hygiene/inspection policies. The group initially encountered a bit of curiosity as to why they would want to reach out to what are reasonably viewed as competitors. However, as the meetings progressed, it became clear to all involved that they all friends beyond just customers in each other’s markets. The discussions acknowledged that the value of Dutch veal exports to Canada is up nearly five-fold from last year to this year and the value of Danish pork exports to Canada are up 40 per cent, while at the same time Canadian pork exports to the EU are up 63 per cent in value and beef up 32 per cent. In that context, it is important that producers on both sides of the Atlantic understand the whole story. All three associations expect to see new imported products in our grocery stores and restaurants. Sometimes, producers get upset when the presence of new imports become visible in their home market, but the benefit on the export side is less visible. Missions like this become important ways to build relationships amongst those who can help bring attention to the big picture and the fact that both sides can make more money by trading with each other.

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The objective is to ensure European farmis out there They are also aware that a lotthat of false information and as such, are to possession scientific factsofthat correct organizations areopen in full thecan facts thattheir misconceptions. 1) they have a growing export interest in trade with Canada and 2)anCanadian producers candepartments be equally This provides opportunity for retail meat to implement an instore ‘Healthy Facts’ nutritional defensive if they feel that they Meat are not being treated campaign set the record straightTherefore, and convince fairly in ourtotrade relationships. it istheir important customers that meat and poultry are actually good for one’s to ensure that everyone sees it in their best interest to health and that they should increase rather than decrease embrace the growing two-way red meat below trade can between their purchases of it. The campaign outlined have Canada and Europe and do everything possible to a direct impact on sales: facilitate resolutioninstore of theposters remaining technical issues. Start by displaying promoting the nutritional

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Overall, the Canadian associations were pleased with be designed to specifically contradict any meat myths. The the receptiveness they encountered this message. comments should all be literature basedto quoting research Ofpapers course, the Netherlands and Denmark are among or MDs for maximum effect. Various posters should be most made progressive - each with a brief powerful message covering the and but competitive meat exporting one theme. countries in Europe, which is why they selected them the following healthy fact asPosters two ofcan theconvey early countries they wantmeat to engage. Their messages: is that such missions are a worthwhile and assessment necessary activity to build andMeat! eventually maintain a 1. Let’s IRON out the Truth on “You would need to eat apresence massive amount of spinach to strong Canadian meat in the EU market. equal (the iron content) in a steak,” says Christopher Golden,

an ecologist and at Harvard With 28 (soon toepidemiologist be 27) Member States University involved in Cambridge, Massachusetts. (Asthey quoted nature.com in the decision making in Brussels, willby definitely need article ‘Brain foodclever eating’.) more friends throughout the European Union. It is time For resource a woman to receive herwork recommended daily of 18 and consuming but worth theintake investment mg of iron, she would need just 300 grams of cooked bovine in the long run.

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Throughout most of Europe, there is very little history of exporting red meat and most other agricultural products. For this reason, European producers tend to have a bias to being more defensive about their home markets. They can be quick to react and become very vocal against increased imports.

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22 CANADIAN MEAT2018 BUSINESS September/October 2017 July/August

FOCUS ON RESILIENCE IN TURBULENT TIMES, FCC CHIEF ECONOMIST ADVISES Canadian producers need to focus on building resilience into their business to maintain or grow their operations in turbulent times, according to Farm Credit Canada (FCC) chief agricultural economist. “Trade tensions make headlines and are on top of mind for many producers, but it is the resulting movements in interest rates, the value of the Canadian dollar and commodity prices that make up the outlooks for various sectors of Canada’s farm economy,” said J.P. Gervais, in launching the latest series of outlooks for the agriculture and agri-food sector.

“ BEING RESILIENT MEANS CANADIAN AGRICULTURE AND AGRI-FOOD BUSINESSES CAN QUICKLY ADJUST TO A DYNAMIC OPERATING ENVIRONMENT THAT COULD LAST THE REST OF THE YEAR,” HE SAID. “WE’RE LIKELY TO SEE SOME FAST-CHANGING CIRCUMSTANCES, INCLUDING THOSE THAT ARE BOTH BENEFICIAL OR POTENTIALLY RISKY TO THEIR OPERATIONS.” Previous years of record-high production boosted global stocks of many agriculture commodities and helped to lower commodity prices. Yet global consumption continued to trend upward and stocks started to fall. Now trade tensions are disrupting commodity markets. “Change is constant in this industry, so producers need to be in a position to take advantage of opportunities and address challenges as they arise,” Gervais said. One reason for optimism in this uncertain environment is that all sectors of Canadian agriculture face sound fundamentals: consumer food demand at home and abroad is still very robust. “Being resilient means Canadian agriculture and agrifood businesses can quickly adjust to a dynamic operating environment that could last the rest of the year,” he said. “We’re likely to see some fast-changing circumstances, including those that are both beneficial 20

July/August 2018

or potentially risky to their operations.” During the first six months of 2018, a lower Canadian dollar helped boost farm revenues, offsetting increases to interest rates, fuel and fertilizer prices. But the Canadian economy relies on the strength of export sectors. Trade tensions, currently pushing the Canadian dollar lower, could continue to pressure the loonie below the $0.78 projected 2018 average and may limit future interest rate hikes in 2018. Interest rates are expected to increase in the latter half of 2018, while the dollar, fuel and fertilizer costs are expected to stabilize. With the ever-changing economic environment, volatile commodity markets and shifting trade patterns, Gervais offers the following tips to build resilience: • Risk management – develop scenarios to determine your exposure to unfavourable financial trends (sudden rise in interest rates) or weather events • Execution – update your marketing plan to reflect the changing environment and resulting volatility and build crop plans to match emerging food preference trends • Strategy – keep an eye on your long-term objectives and think about the integration of the crop, marketing and financial plans Gervais said the Canadian agriculture and agri-food sector has already proven resilient and most Canadian farms continue to be in a very good financial position. FCC Ag Economics Outlooks cover crops (eastern and western Canada), food processing, dairy, hogs and pork, cattle and beef, and dairy throughout July. By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture achieve their goals. For more information and insights, visit the FCC Ag Economics blog post at www.fcc.ca/AgEconomics.

CANADIAN RESEARCHERS NEW SURREY DEVELOP BACTERIASLAUGHTERHOUSE DETECTING STRIP ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS

By Ron Charles, CBC News

It’s impossible to tell if meat is contaminated with potentially deadly E. coli bacteria by simply smelling or looking at it, but one day a glance at the plastic packaging could let consumers know if it’s safe to eat. Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility That’s the hope of a team of researchers at McMaster By Amy Reid, Peace Arch News University in Hamilton, Ont. A federally licensed beef processing facility is in the works

They’ve developed a thin, plastic patch they call in Surrey, BC. Sentinel Wrap that changes colour under ultraviolet light “There’s a new building coming forward, a new abattoir, I when it comes into contact with meat contaminated think that’s the French pronunciation of slaughterhouse,” with E. coli. said Councillor Mike Starchuk. “So Surrey will have a newer facility with a patch better capacity so people will have The thin, flexible plastic looks simple, the ability to not have to ship an animal Alberta to have but it’s taken 15 years of research to get to it to it processed. The applications have gone through the work, says Tohid Didar, an assistant professor Agricultural and Food Sustainability Advisory Committee.” in McMaster’s chemical and mechanical engineering The facility is proposed on a 25-acre property within the department. Agricultural Land Reserve at 5175 184th St. The planned

To create the patch, a printer deposits tiny droplets of DNA molecules onto a thin, flexible plastic film. so as to notpatch emit odours. there is an operational When the comesAnd intowhile contact with E. coli and abattoir on the — property now, it’s can is6,000-square-foot exposed to ultraviolet light the kind commonly only process a limited number of cattle. used to detect counterfeit bills — the molecules light Chris Les is general manager ofof Meadow Valley Meats, up, signalling the presence bacteria. the company behind the project. Meadow Valley Meats is

Didar says the current to license test forforE. coli seeking a Canadian Food method Inspectionused Agency and other food-borne bacteria a multi-step process the proposed abattoir, to become a is federally registered meat establishment and expand the operation. This would that takes at least a day. allow the meat products to be transported beyond B.C.’s

“You need to take the package, open it, process it, boundaries. take it to a lab, either culture that sample or try to do “Our focus is on trying to bring a more efficient, sustainable different laboratory-based experiments to find out 30,000-square foot E. abattoir Small patch can detect coli in Cloverdale would process up local product to the market, realizing we can do that now what’s going he says. “Our goal ispeople to avoid in a very limitedon,” sense,” said Les. “I caution whenall that to 100 head of cattle per day. He holds up the transparent patch, about the size of talking to them and they say,information.” ‘What a big plant, that’s going so you can get real-time According to a city report, that would make it larger than two postage stamps, between his thumb and forefinger to go allow you to go mainstream.’ Well, yes, if you look any other processing facility in B.C.. But it would still be Team member Carlos Filipe, chair of in the context of B.C., but this is still a very niche plant in his lab. small by industry standards, compared to the largest meat McMaster’s chemical engineering department, and we’ll serve a niche industry for producers and for the processing Alberta that process 3,000your heads of “This could be theplants wrapin that you wrap around hopes shoppers one day be able toofpoint market.that It’s certainly not will going to be a monstrosity a plant cattle per day. meat for example,” he says. “You can then scan the but it’ll be a big upgrade from the site currently.” their smartphone cameras at packaged fresh food and facility would be fully enclosed and designed food to The findproposed out what’s going on.” Continued on page 32

continued on page 22

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check for contamination by using an app.

mass production.

“The goal is to allow people to ultimately look at the packaged food and be able to tell if there is food contamination, like E. coli, in that food, without having to open the package,” says Filipe.

“We are hoping that in two years’ time, with the industry partners that we are currently talking to, we can at least start some pilot studies on these so that we can have some selected food in grocery stores that we can follow and see what happens,” says Didar. “That’s the goal.”

Research could expand to salmonella, listeria He says the research team is working to develop Sentinel Wrap patches for other types of food-borne bacteria, including salmonella and listeria. The patches also detect contamination in water and other liquids. Didar says Sentinel Wrap itself is safe and does not contaminate food. The researchers published their findings in April in the scientific journal ACS Nano, but they still have obstacles to overcome before they can test the patch in the real world. It would first need approval from food regulators, then the researchers would have to bring down the cost of

The Canadian Meat Council, which represents meat packers, reacted positively to the invention. “A rapid detection tool that is accurate and specific would be a great addition to the food safety toolkit,” said council spokesperson Marie-France MacKinnon in a recent email to CBC News. But, she said, the best defence against food contamination is knowing how to properly cook meat. “No invention can replace proper safe food handling techniques and cooking foods properly to temperatures that kill harmful bacteria,” she said.

HOG INDUSTRY APPLAUDS NEW INVESTMENT IN RESEARCH Over the next 5 years, up to $18.5 million dollars will be invested by the federal government and industry partners in research to further the development of the Canadian pork industry. Swine Innovation Porc and the Canadian Pork Council (CPC) welcomed Minister of Agriculture and Agri-Food (AAFC), Lawrence MacAulay’s recent announcement, highlighting that up to $12.7 million will be invested by the federal government. Swine Innovation Porc and its partners will also contribute $5.8 million, making a total investment of up to $18.5 million in research over a fiveyear period. “The Canadian swine sector will benefit enormously from this investment,” stated Stewart Cressman, Chair of Swine Innovation Porc, who was on hand for the announcement in Sherbrooke, Québec. “We want to thank Minister MacAulay for this significant investment, which shows AAFC’s commitment to support industry-led research. We are confident that the outcomes from program’s research projects will help increase the competitiveness of the Canadian pork industry in terms of animal welfare, the environment, as well as animal health and nutrition.” This funding contribution is part of the AAFC’s Canadian Agricultural Partnership, AgriScience Program Clusters. It encourages research and innovation to take place to enhance the profitability and sustainability of the agricultural sector. Swine Innovation Porc will use this investment to implement its national knowledge transfer and research and development strategies under the program title of “Swine Cluster 3–Innovating for a Stronger Pork Sector.” The goal of this program is to accelerate the pace of innovation, drive sustainable growth, strengthen 22

July/August 2018

competitiveness, and maximize the resilience of the sector. “Pork farmers rely on research and innovation to implement new practices and tools that help them improve their sustainability, while remaining competitive, stated Minister MacAulay. ``Today’s investment will ensure Canada’s pork industry continues to sustainably produce high-quality products at home, and remain a top exporter in the world, which is good for our economy and for creating good, well-paying jobs for Canadians across the country.” The up to $18.5 million Swine Cluster 3 program will be the third such program led by Swine Innovation Porc. “Swine Innovation Porc has proven its ability to drive national research programs,” notes Stewart Cressman. “We are ready to officially launch this new program so researchers can begin working on ways to help the industry be even stronger.” Since 2010, the objectives of research funded through the Swine Cluster program have focussed on reducing the cost of production, increasing product differentiation and enhancing knowledge transfer. The total investment over 8 years amounts to $31.7 million and has resulted in the completion of 35 different projects and over 1000 communication activities. For more information, visit The Canadian Pork Council at http:// www.cpc-ccp.com/ or Swine Innovation Porc at http://www. swineinnovationporc.ca/

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July/August 2018

EGG SALES SOAR AS CANADIANS JUMP AT ALL-DAY BREAKFAST By Kyle Bakx, CBC News

Egg sales in Canada are sizzling, and a recent trend in the fast-food industry is fuelling some of the demand in the country — all-day breakfast. In early 2017, restaurant chains like McDonald’s and A&W began selling their breakfast sandwiches around the clock. Tim Hortons is now starting its own test at certain locations in Ontario.

Whether the demand is from fast-food or traditional restaurants, Mandel isn’t surprised more places are cooking up eggs throughout the day. It’s how he was raised.

The menu change is a hit at McDonald’s, with egg sales surging 25 per cent in the first 12 months of offering allday breakfast. That’s over 35 million more eggs.

Threat to beef?

The figures are startling even for those in the industry.

Experts are watching whether beef consumption may decrease as customers buy cheaper egg sandwiches instead of burgers.

In the past 12 months, egg sales were up 6.6 per cent across Canada. As more restaurants are adding eggs to their menus, the surge in sales shows no signs of cracking.

“I don’t know if the breakfast sandwich will directly cannibalize some of those lunch or supper burger items, overall,” said Robert Carter, a food service analyst with Toronto-based market research firm NPD Group.

“MAYBE 10 OR 15 YEARS AGO, EGGS WERE LOOKED AT AS AN ENEMY.” KEVIN GRIER, FOOD INDUSTRY ANALYST

So far, Carter said, customers are frequently buying breakfast items more as a snack or as a fourth meal during the day.

“Oh wow,” said Sarah Caron, with the Egg Farmers of Canada, upon hearing the numbers. “It shows the clear demand for our product. These chains are smart.”

The egg industry has been on a roll for quite a while, with 11 straight years of increased sales across the country. The latest shift in the fast-food industry is spurring even further growth.

“Eggs are one of the top trends. We know consumers are looking for protein,” said Caron. “We’re seeing a lot of hard-boiled eggs for sale now as well. That’s quick and easy for consumers to do at home or to buy at grocery stores.” In 2017, more than 732 million dozen eggs were produced in Canada. Watching sales continuously increase year after year is bringing optimism to the 1,000 egg farmers across the country, who have few complaints about their industry. “I think we’re comfortable. With the all-day breakfast and stuff, we’ll need to increase the production,” said Darrell Mandel, egg manager at the Brant Hutterite Colony in Southern Alberta. 24

July/August 2018

“We did see an increase in the snacking of breakfast sandwiches, which is pretty interesting,” he said. Consumption of breakfast sandwiches is now up to 700 million annually in Canada, an eight per cent over last year, according to the NPD Group. New outlook on eggs The egg industry’s smooth ride over the past decade is due, in part, to changes in diet and knowledge. The sector faced significant pressure as eggs were chastised as being harmful to your heart. Medical experts have worked to dispel those cholesterol concerns and say it’s more important to look at what you eat with your eggs. “Dietary cholesterol — found in meat, poultry, eggs and regular dairy products — have less impact on blood cholesterol than foods with saturated and trans fat,” according to the Heart and Stroke Foundation of Canada. Industry experts say the sector has since experienced a remarkable reversal of fortune. “Maybe 10 or 15 years ago, eggs were looked at as an enemy,” said Kevin Grier, an independent market

analyst for the food industry. However, with research proving otherwise, “that’s got to be a large part in the turnaround of egg demand.” Increasingly, people want protein with every meal, and most types of diets, even the trendy ones, often include eggs.

“People who have concerns with health issues — a lot of them can eat eggs because there’s no salt in them, no sugar in them, and they’re healthy,” said Beatrice Visser, who has 24,000 layers at her egg farm near Barrhead, Alta., about 100 km northwest of Edmonton.

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July/August 2018

September/October 2017 CANADIAN MEAT BUSINESS 25

INVESTING IN INNOVATION IN CANADA’S EGG INDUSTRY Canada’s hardworking farmers are the backbone of Canada’s economy, ensuring families across Canada and around the world have safe, high-quality food on their tables. The Canadian egg industry is a vital part of the Canadian economy, contributing over $1 billion a year and employing 17,000 people. Lawrence MacAulay, Minister of Agriculture and AgriFood, recently announced an investment for the egg industry to assist in the development of an electronic scan to determine the gender and fertility of eggs, helping to increase the capacity and efficiency of hatcheries. The Government of Canada is providing $844,000 to the Egg Farmers of Ontario to study ways to minimize waste and take a major step forward to address animal welfare matters. “The Canadian egg industry is driving our economy and creating good jobs,” said the Minister. ``The

Government of Canada is proud to support the Egg Farmers of Ontario for this first-of-its-kind study that will make Canada a world leader in animal welfare. This investment will help pilot a solution that will be welcomed both in Canada and around the world and will keep the egg industry strong and growing.” This project is supported by the Canadian Agricultural Adaptation Program (CAAP), a funding initiative that helps the farming sector to remain competitive by piloting solutions to new and ongoing challenges.

AG MINISTERS LOOK TO GROWTH AND INNOVATION Canadian farmers, ranchers and processors across the country work hard every day to ensure that Canadians and consumers around the world have access to high-quality and healthy food. Canada’s agriculture and agri-food system contributes over $110 billion of our gross domestic product, and last year our agriculture, food and seafood exports hit an all-time record of $64.6 billion. Topics critical to the growth and continued prosperity of the sector were the focus of discussion at the annual meeting of federal, provincial and territorial (FPT) ministers of agriculture, co-chaired by Lawrence MacAulay, federal Minister of Agriculture and Agri-Food, and Lana Popham, Minister of Agriculture for British Columbia. Ministers discussed how they can collaborate to create more jobs and support economic growth in the agriculture and agri-food sector. Canada’s agriculture and agri-food sector was recently identified in the Barton Report as one of six sectors with high potential for economic growth. An Agri-Food Economic Strategy Table was created as part of the federal Innovation Skills Plan and serves as a forum for industry leaders to explore opportunities and challenges facing the sector. The Table engaged FPT ministers on their views to drive growth in the sector. Ministers noted the significant work that the Table has undertaken and committed to work collaboratively with industry. 26

July/August 2018

“It was wonderful to host my counterparts from around Canada here in Vancouver,” said The Honourable Lana Popham, Minister of Agriculture for British Columbia. “As Agriculture ministers, we’re always looking at ways to make sure our programs and policies are working for farmers, producers and processors across the country. The discussions we had together on supporting research, trade and development, and on the next steps in business risk management programs bring the voices, ideas and concerns of Canadian farmers to the table, and ensure they are part of the conversation. I look forward to continuing to build strong relationships across Canada and working together for Canadian food production and security.” Ministers acknowledged the importance of trade. They discussed on-going trade negotiations to maintain and grow market access for Canada, and the importance of working together to help the agricultural sector expand their businesses in key global markets. Ministers also continued on page 28

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July/August 2018

reiterated their strong support for supply management. Ministers agreed that an appropriately skilled and increased labour supply in the short and long term is critical to future growth, and also agreed on the importance of ensuring the effectiveness of temporary foreign workers programs.

MacAulay, federal Minister of Agriculture and Agri-Food.

FPT Ministers noted the successful launch in April 2018 of the Canadian Agricultural Partnership, a fiveyear, $3-billion investment to help the sector grow, innovate and prosper. The Partnership provides ongoing investments to support leading edge discovery and applied science, spur innovation, and promote international trade, while ensuring that producers continue to have access to business risk management (BRM) programs.

After significant effort over the past year, the external panel of experts presented its recommendations on BRM programming. Ministers thanked the panel on concluding their work and directed officials to move forward with additional work required on the recommendations and to report back on progress to Ministers in 2019. Ministers remain committed to continued engagement with industry, external experts and other stakeholders.

The Government of Canada provided an update on progress toward legalization of cannabis. The cannabis industry is eligible to apply for federal programs under the Partnership. Provinces and territories have the discretion to determine eligibility for cannabis production for cost-shared programs.

Topics at the meeting also included identifying areas for increased collaboration to streamline regulations, reduce regulatory burden and continue to uphold the safety and high quality of agricultural products. In addition, Ministers had the opportunity to hear about Indigenous agriculture activities currently underway in British Columbia and received an update from the federal government on the continued development of A Food Policy for Canada.

“Canada’s farmers, ranchers and food processors provide safe, nutritious and sustainable food for the world, while creating well-paying jobs for our middle class. Federal, provincial and territorial governments are gathered here to focus on the overall competitiveness of the sector, and to create better opportunities for farmers and Canadians,” stated The Honourable Lawrence

For BRM programs, income from cannabis (including both medicinal and recreational) are not eligible for support under AgriStability and AgriInvest. Governments agree to monitor this over the coming years as the cannabis industry matures and stabilizes.

The next annual meeting of FPT Ministers will be held in Quebec City in July 2019.

SUSTAINABLE BEEF AND FORAGE SCIENCE CLUSTER LAUNCHES The recently announced $21 million Sustainable Beef and Forage Science Cluster is a partnership between the Canadian beef industry and the Government of Canada to enhance the competitiveness and sustainability of Canadian beef through research and innovation. This Science Cluster builds on the success of two previous clusters (2009-13 and 2013-18) and took years to prepare including consultations with experts, and stakeholders as well as thorough economic and practical analyses. Funding will go to 26 projects, to be completed by March 31, 2023, under five main themes: • beef quality and food safety; • animal health, welfare, and antimicrobial use; • feed production and efficiency; • forage productivity and environmental sustainability;

and • knowledge and technology transfer. The portfolio of research is focused on three core objectives: To enhance industry sustainability and improve production efficiencies, priority outcomes are to enhance feed and forage production, increase feed efficiency and decrease the impact of animal health issues and production limiting diseases. To improve consumer confidence and beef demand, priority outcomes are to reduce food safety incidences, continued on page 29

July/August 2018

define and yield benchmarks supporting the quality Canadian Federation of Independent Businessthe (CFIB), I figured I needed to share with our government six ways Canadian Beef Advantage, and improve beef quality small business owners (and their income) are different through primary production improvements and the from employees.and application of technologies to development optimize cutout values andtake beefondemand. 1. Risk. Business owners huge risks in order to

Results from this thirdStatistics ScienceCanada Clusterdata are shows expected me differently. In fact, that employers are about four times more likely to be earning to have several benefits to beef producers, packers, less thanas $40,000 thanCanadian $250,000. population. retailers, well asthan themore general It To willfight enhance the responsible production ofmember quality these latest proposals, CFIB is a proud beef and cattle, protect sensitive agricultural of the Coalition for Small Business Tax Fairness, lands a unified voice of 50 organizations representing hundreds of the and support the Canadian economy by supplied earn a living, and when they do, the entire family is To improve public confidence in Canadian beef, thousands of businesses from allfor sectors of the economy. involved. Many business owners empty their savings, re- growing international demand high-quality protein. outcomes are to improve food safety, strengthen mortgage their homes and borrow from friends, family

the surveillance of antimicrobial use and resistance, and banks to get their business going. Once it does, develop effective antimicrobial alternatives, ensure they often rely on family members not only for support, animalbut care, demonstrate thetosafety and efficacy of This to actively contribute the business’s success. new production technologies, improve environmental is particularly true on Canadian farms, where each family sustainability theoften beeffrom industry’s member and playsmeasure a vital role, a young age. If the environmental benefits. business fails, and many do, the whole family is often set back for years.

The Coalition recently sent Finance Minister Bill Morneau

letter asking the government to take the proposals off the A adetailed summary of all 26 projects funded under the table and instead meet with the business community Sustainable Beef and Forage Science Cluster can be to address the shortcomings in tax policy affecting private found at: http://www.beefresearch.ca/files/pdf/beef_ corporations. science_cluster_3_research_project_details.pdf There’s still time for you to have your say. Consultations on the proposal remain open until October 2nd, 2017. Contact your local MP and let them know what the reality is for Canadian small business owners.

UNCERTAINTY KEEPING ENTREPRENEURS UP AT NIGHT 2. Getting paid last. A small business owner gets paid AFTER everyone else, including employees, suppliers, and of course, governments. I’ve heard thousands of stories of business owners taking home next to nothing in tough times in order to ensure they could pay and hang onto their valued employees and their business.

3. Working hours. Any agri-business owner will tell you that the nine-to-five doesn’t apply to the farm. More than 40 per cent of Canada’s small business owners work 50 hours or more per week – compared to only six per cent By Marilyn Braun-Pollon of employees.

Here’s hoping the federal government recognizes the important differences between the income of business owners and employees and abandons these proposals that will harm our entrepreneurs and our economy. This column was first published in the Huffington Post on August 25, 2017. Dan Kelly is President of the Canadian Federation of Independent Business (CFIB). In this capacity, Dan is the lead spokesman and advocate for the views of CFIB’s 109,000 small-and medium-sized member businesses across Canada, including 7,200 agribusiness members. Follow Dan on Twitter @CFIB and learn more about CFIB at www.cfib.ca.

It is not an easy time to own a small in Canada. Significant changes to labour 4. Benefits. Many employees—particularly thosebusiness in government—enjoy health, dental and other benefits laws, minimum wage increases, skyrocketing energy costs and ballooning deficits and courtesy of their employers. Again, the business owner debts would be enough to keep any entrepreneur up at night. depends on the success of the business to fund any benefits or other their own need. owners But there arethey three keyfamily areasmay business Paperwork andclosely red tape. Think you have struggles will5.need to watch in the coming months that with the Canada Revenue Agency or other pose a threat to the entrepreneurial dream. government departments? Consider the massive Federal Tax of Changes number rules, regulations and agencies a small This year’s budget in start the federal business has toofficially deal with.rolled Want to a bicycle government’s latest changesYou to small business repair shop in Winnipeg? will need to register to 44 different agencies you start. taxes.with Theupnew rules will see smallbefore business A Halifax dentist needs up to 45 permits earn owners with more than $50,000 in annualto passive a living. investment income, start to lose their access to the 6. Retirement. This is a If big While has government small business tax rate. a one. business more than workers have gold-plated pensions often startingthey at $150,000 in annual passive investment income, age 55, and many employed Canadians have lose access to the small rate entirely, and are taxed employer-matched RRSPs, the small business owner the same way as a big corporation. is counting on the value of the business—including

According to the government’s the tax any investments owned by theprojections, corporation—for his or herpackage retirement.will Succession alreadyinto major change mean anplanning extra $1is billion issue forcoffers small business owners, especially when it government from small independent business comes to the agri-business community. When it is owners. easier and more lucrative to sell to a third party than it

In reality, know exactly money is to we passdon’t your business down how to themuch next generation, the government willlivelihood wind upand taking It looksof it threatens the very in. existence Canada’s family farms, something is seriously increasingly like government is low-balling howwrong. much extra money willlots receive. The Parliamentary Budget Sadly, thereitare of Canadians (and, it appears, many Officer (PBO)who hasbelieve reported the new politicians) thatthat hanging out a revenue shingle tocould say business is agreater licence than to print money. represent be you’re two tointhree times what the Ibudget 109,000 entrepreneurs across every sector, who tell continued on page 30 meatbusiness.ca

July/August2017 2018CANADIAN MEAT BUSINESS 2129 September/October

forecasts. They can’t be any more specific than that because they “cannot clearly identify the individuals who will be subject to the (income-splitting) rules.” Think about that for a second. The best minds at the PBO and Finance cannot agree on who the rules will affect and how much money the government will take in. God help us when this falls to the Canada Revenue Agency. While the federal government is ploughing ahead, there has been some resistance at the provincial level. Only Ontario and Prince Edward Island have followed the feds down the rabbit hole. It’s good to see Saskatchewan and Manitoba are raising serious concerns, and what began as hesitancy is becoming outright resistance amongst provincial governments to unwillingly pile more on the backs of their small business owners. In Ontario, a newly elected government brings hope that reason will be seen and their decision will be reversed, restoring tax fairness in the small business community. Carbon Taxes There is also the looming threat of a federal carbon tax. Recent research from the University of Regina found that a carbon tax of $50/tonne of CO2 emissions could carry a $16-billion price tag in Saskatchewan by 2030, reducing GDP by 2.43 per cent annually, while doing virtually nothing to reduce the province’s carbon output. The cost on households across the country also promises to be significant. In Ontario, recently elected premier Doug Ford has pledged to join the pushback against the carbon tax after scrapping the province’s cap and trade program which had allotted a four-year free pass to Ontario’s larges emitters while hammering mid-sized manufacturers. Let’s be clear: small business owners care about the environment. In fact, according to a 2016 CFIB survey, 84 per cent were motivated to implement environmentally friendly measures because of their own personal views. More and more small business owners are taking it upon themselves to implement green policies like including expanded recycling programs and cutting back on energy usage through installing more energy efficient equipment.

July/August 2018

But, in that same survey, 78 per cent of small business owners also said that they felt it was possible to grow the economy and protect the environment at the same time. We at CFIB are encouraging governments to develop climate policies that incentivize green alternatives and go after the major polluters, not ones that put businesses at a significant competitive disadvantage with our neighbours. NAFTA Then there is NAFTA. What had at one point looked like a promising new deal – has fallen into shambles over the past couple of months. This is surprising because they had, after all, completed several chapters, including one dedicated to small and medium-sized businesses. The result has the makings of a full-blown trade war as tariffs are imposed and countered between press conferences and Twitter tirades. The federal government continues to strongly defend those industries under attack. And while in this case the wound may not be selfinflicted, the threat remains: small business owners across the country could lose free access to markets they depend on for their survival. If governments don’t stand up for small business owners soon, competitiveness is going to be the least of Canada’s problems. That’s when the real nightmare starts. Marilyn Braun-Pollon is Vice-President Prairie & Agri-business with the Canadian Federation of Independent Business (CFIB). She can be reached at mssask@cfib.ca Established in 1971, CFIB is Canada’s largest association of small- and medium-sized businesses. CFIB takes direction from more than 110,000 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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