USDA Releases Updated Guidelines on Meat, Poultry Labels
FCC: Canadian Food Manufacturing Holds Food Security Opportunity
Meat Institute to USDA: Proposed Changes Remain Flawed
North American Cattle Industry Leaders Meet to Discuss Challenges Facing Producers
Rising Per Capita Consumption Expected in Mexico Over the Next Decadet
Research Says Beef Industry Can Reduce Emissions by Up to 30%
The Politics of Deli Sandwiches
THE BEEF, PORK & POULTRY INDUSTRY DIGITAL
MAGAZINE
PUBLISHER
Ray Blumenfeld ray@meatbusinesspro.com
CO-PUBLISHER
Deb Wilson deborah@meatbusinesspro.com
MANAGING EDITOR
Scott Taylor publishing@meatbusinesspro.com
DIGITAL MEDIA EDITOR
Cam Patterson cam@meatbusinesspro.com
CONTRIBUTING WRITERS
Joseph Falzata, Jim Eadie, Ben Roberts, Cam Patterson
CREATIVE DIRECTOR
Patrick Cairns
Meat Business Pro is published 12 times a year by We Communications West Inc
BCRC: 2023-2024 YEAR IN REVIEW HIGHLIGHTS
The Beef Cattle Research Council has released its 2023-2024 Year in Review highlighting key activities and outcomes from the past fiscal year. The report showcases how producer investments in the Canadian Beef Cattle Check-Off are tackling beef industry priorities while generating maximum value from every research dollar.
“The BCRC uses producer input to direct Check-Off dollars toward priority beef and forage research projects,” says Alberta producer and BCRC Chair Craig Lehr. “Our practical extension materials make certain this research doesn’t just sit on a shelf, but it actually gets out to producers so we can improve our individual operations and make our industry even better.”
The 2023-2024 BCRC Year in Review reports funding, project spotlights and research findings for:
• 23 research and technology transfer projects from Canada’s Beef and Forage AgriScience Cluster,
• 75 priority research projects,
• 14 proof of concept projects and
CO MMUNICATIONS W EST IN C
We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4
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
• more than 200 extension activities and projects funded outside of the Cluster.
The report also features university research chair positions, mentorships, and other collaborative activities in which the BCRC is involved. It includes an update from the Verified Beef Production Plus program that the BCRC continues to fund and oversee.
“This report is just one of several ways the BCRC strives to share the impacts research is having on industry productivity, beef quality, food safety and public trust with our investors—which are Canada’s beef cattle producers,” said BCRC Executive Director Andrea Brocklebank.
In addition, the Year in Review provides a broad funding overview by program area and source. In the past fiscal year, the BCRC received on average $0.67 (unaudited) of every $2.50 of the Canadian Beef Cattle Check-Off collected by provincial beef cattle associations. Typically, for every $1 of producer investment, the BCRC looks to leverage $2-3 in other direct funding and in-kind contributions.
This annual stakeholder report offers a visual summary of the BCRC’s 2023-2024 Results Report, which was submitted to the Canadian Beef Cattle Research, Market Development and Promotion Agency, and covers the fiscal year, July 1, 2023, through June 30, 2024.
https://www.beefresearch.ca/
USDA RELEASES UPDATED GUIDELINES ON MEAT, POULTRY LABELS
The aim is to strengthen substantiation of meat label claims
The US Department of Agriculture (USDA) has announced the availability of an updated guideline that makes recommendations to strengthen the documentation that supports animal-raising or environment-related claims on meat or poultry product labelling. The action builds on the significant work USDA has already undertaken to protect consumers from false and misleading labels and to implement President Biden’s Executive Order on Promoting Competition in the American economy.
“USDA continues to deliver on its commitment to fairness and choice for both farmers and consumers, and that means supporting transparency and highquality standards,” said Agriculture Secretary Tom Vilsack. “These updates will help to level the playing field for businesses who are truthfully using these claims and ensure people can trust the labels when they purchase meat and poultry products.”
Animal-raising claims, such as “Raised Without Antibiotics,” “Grass-Fed” and “Free-Range,” and environment-related claims, such as “Raised using Regenerative Agriculture Practices” and “Climate-
Friendly,” are voluntary marketing claims that highlight certain aspects of how the source animals for meat and poultry products are raised or how the producer maintains or improves the land or otherwise implements environmentally sustainable practices. The documentation submitted by companies to support these claims is reviewed by USDA’s Food Safety and Inspection Service (FSIS) and the claims can only be included on the labels of meat and poultry products sold to consumers after they are approved by the agency.
FSIS last updated its guideline on these claims in 2019.
In the updated guideline, FSIS strongly encourages the use of third-party certification to substantiate animalraising or environment-related claims. Third-party certification of animal-raising or environment-related claims helps ensure that such claims are truthful and not misleading by having an independent organization verify that their standards are being met on the farm for the raising of animals and for environmental stewardship. The revised guideline also emphasizes more robust documentation for environment-related and animal-raising claims.
Additionally, the updated guideline recommends that establishments using “negative” antibiotic claims (e.g., “Raised Without Antibiotics” or “No Antibiotics Ever”) implement routine sampling and testing programs to detect antibiotic use in animals prior to slaughter or obtain third-party certification that includes testing. The revisions were informed by sampling data, petitions, public comments to those petitions and feedback received from a wide range of stakeholders.
In light of concerns about negative antibiotic claims, FSIS announced last year that the agency would be conducting a study in partnership with USDA’s Agricultural Research Service (ARS) to assess the veracity of these claims. FSIS collected liver and kidney samples from 196 eligible cattle at 84 slaughter establishments in 34 states, and ARS analyzed the samples using a method that targeted more than 180 veterinary drugs including various major classes of antibiotics. The study found antibiotic residues in approximately 20% of samples tested from the “Raised Without Antibiotics” market.
The action FSIS is taking through the publishing of this guidance today addresses these concerning findings and makes clear that FSIS will take enforcement action against any establishments found to be making false or misleading negative antibiotic claims.
Additionally, FSIS has informed the establishments with positive results from the ARS-FSIS study and advised them to conduct a root cause analysis and implement corrective actions. FSIS has also advised these establishments to determine how antibiotics were introduced into the animal and to take appropriate measures to ensure that future products are not misbranded.
Further information on the study can be found in the Federal Register Notice announcing the availability of the updated guideline.
FSIS and ARS will be publishing a peer-reviewed paper with complete results from the study in the near future. The study findings underscore the need for more rigorous substantiation of such claims. These sampling results may lead to additional testing by the agency. FSIS has the authority to collect samples any time it believes a product is mislabeled with any claim covered by the guidance. Moreover, FSIS may consider future additional actions, including random sampling and rulemaking, to further strengthen the substantiation of animal-raising and environment-related claims.
FCC: CANADIAN FOOD MANUFACTURING HOLDS FOOD SECURITY OPPORTUNITY
Canadian food manufacturing plays a crucial role in addressing the need to sustainably feed a growing global population according to a recent FCC Economics Report.
Food is the largest manufacturing sector in Canada by both employment and sales. With abundant natural resources and a strong global reputation for safe and high-quality food, the sector is poised to be a world leader in sustainable food production.
“If we’re going to tackle some of the most pressing challenges facing our planet like hunger, global health, climate change and stagnant economic growth, we need to build new and ambitious partnerships with key sectors like food manufacturing,” said Krishen Rangasamy, FCC manager economic insights. “To fully capitalize on this opportunity, we also need to engage investment and innovation by those in our industry and beyond.”
With the world’s population expected to exceed 9 billion by 2050, the Food and Agriculture Organization (FAO) estimates that agricultural production needs to increase by 60 per cent over 2005 levels. This challenge requires producing more food with the same or fewer inputs- a task that Canadian food manufacturing is well-positioned to tackle as it makes the most of the potential created through smart manufacturing and digitization.
“Just as steam, electricity, and the internet propelled us to produce more with fewer inputs during previous industrial revolutions, automation, robotics, artificial intelligence, and blockchain are shaping up to do the same in food manufacturing in the fourth industrial revolution,” said Amanda Norris, FCC senior economist. “These technologies can improve output and labour efficiency, manage inventory, prevent unplanned downtime, forecast demand, track production, and ensure quality control - all opportunities to help improve productivity in Canadian food manufacturing.”
Productivity increases when output grows faster than working hours, a trend that has been evident in Canadian food manufacturing over the past two decades. Despite challenges between 2008 and 2012, the industry has rebounded, demonstrating resilience and the ability to produce more food in less time.
“Food manufacturing in Canada has already proven its resilience and adaptability. After a period of decline, the industry rebounded by investing in new technologies and consolidating operations, leading to an 11 per cent productivity growth between 2013 and 2017,” Norris explains. “Now, with productivity growth remaining relatively flat, it’s time for a renewed focus on innovation to drive the next wave of growth.”
Figure 1: Food manufacturing productivity rebounded after a slump between 2008 and 2012, but remains flat in recent years
Rangasamy also underscores the importance of attracting investment from sectors outside of agriculture and food. “To truly harness the potential of the fourth industrial revolution, we need greater investment from those who may not traditionally see themselves as part of the ag and food industry,” he notes. “This will help us scale up and innovate, ensuring that Canada not only meets the food demands of tomorrow but does so in a way that benefits all Canadians.
By embracing new technologies and fostering crosssector investment, the industry can continue to lead in sustainable food production, ensuring a stable food supply and contributing to the global effort to feed the world.
“Productivity growth is not a one-size-fits-all solution; it requires a blend of efficiency, economies of scale, and innovation,” Norris stated. “By embracing new technologies and supporting a qualified labour force, Canada’s food manufacturing sector can help sustainably feed the global population and maintain a competitive edge in the international market.”
MEAT INSTITUTE TO USDA: PROPOSED CHANGES REMAIN FLAWED
Will Hurt Livestock and Poultry Producers, Consumers
The Meat Institute recently submitted comments documenting the many flaws and costs of the latest proposed rules change to the Packers and Stockyards Act (PSA) by the Biden Administration.
In the proposed rule, the U.S. Department of Agriculture (USDA) attempts to circumvent Congress and the courts to reverse the longstanding legal standard that a plaintiff must demonstrate harm to competition to sue and win under the Packers and Stockyards Act Section 202(a) or (b).
“This position was wrong before and is wrong now,” said Mark Dopp, Chief Operating Officer and General Counsel of the Meat Institute.
In addition to documenting the legal precedent and the intent of Congress, the Meat Institute’s comments show how the proposed rule violates the Constitution and the Administrative Procedure Act because of its breadth and vagueness.
“Changing the harm to competition standard requires Congressional action and that fact is highlighted by the Supreme Court’s decision in West Virginia v. EPA,” said Dopp. “In addition, the proposal includes standards so vague that, if adopted, it would be impossible for a regulated entity to know how to comply.”
The comments include a repudiation of USDA’s inadequate economic analysis given the agency had two years to conduct one. “AMS seems to think the fact that conducting an analysis is hard means the agency need not do one. AMS is certainly correct when it said, ‘Applying a quantified dollar value to the improvement would be a difficult task.’”
“The inefficiencies and litigation that will result from implementing the proposal will increase the costs of domestic beef, pork, and poultry production,” said Dopp. “Such a result would harm American consumers who would pay more for meat, and it would harm domestic livestock producers, poultry growers, packers, and dealers by decreasing demand for domestic products and hurting exports.”
In fact, Dopp says, USDA simply decided not to even try to estimate the almost certain litigation costs regulated entities will incur if the proposal becomes a final rule.
Dopp concludes his comments with the reminder that increased litigation costs are not only the likely result of the rule, but they are part of the Administration’s desired outcome.
“Assistant Attorney General for Antitrust Jonathon Kanter captured it best at the Center for American Progress event at which the rule was unveiled when he said he hopes plaintiffs ‘will bring a PSA case, or two, or 20.’”
For more on the Packer and Stockyards Act proposed rules changes, visit https://www.meatinstitute.org/
https://www.beaconmetals.com
Livestock Research Innovation Corporation (LRIC) has named Kelly Somerville as its new CEO, following the recent retirement of former CEO Mike McMorris. Somerville most recently served as industry services manager for LRIC.
Somerville, a University of Guelph Animal Science graduate, has an extensive background in the beef industry as well as past roles with the Ontario Federation of Agriculture and the Ontario Soil and Crop Improvement Association. She also co-owns a small herd of purebred Angus cattle.
“Over the past year, Kelly has impressed us with her passion, drive and vision for the livestock industry, as well as her expertise and ability to build relationships across our industry and beyond, positioning her well to lead this organization into its next chapter,” says LRIC board chair Don Gordon. “LRIC is an innovation organization, and we believe Kelly is an innovative hire who is very reflective of the generational shift in our industry as young, innovative people move into leadership roles.”
Since joining LRIC last year, Somerville has been heavily involved in developing and leading many of the organization’s current projects. This includes the farming innovation tour series to introduce government, academia and industry representatives first-hand to farmers and innovation on livestock farms, the Horizon Series webinars, and the Engineering a Better Farm initiative to help bring engineering expertise and innovation to livestock farming by building relationships with engineering schools at several universities.
KELLY SOMERVILLE APPOINTED CEO AT LRIC
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
and quality.
She also works closely with LRIC’s membership and with its International Research Advisory Committee and Emerging Trends and Opportunities Committee.
“As an organization, LRIC is on a solid path, with the board and staff fully committed to driving research as a key element in the livestock innovation cycle. I look forward to building off the existing momentum and continuing the great initiatives currently underway,” says Somerville. “This includes our GRIP (Getting Research into Practice) roundtable coming up this fall, which will be the next step in our ongoing efforts to get research from the lab into the barn.”
Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate these challenges, including certification and auditing, consulting, technical services, training and education, food and label compliance, packaging, and product and process development.
NSF International’s Canadian website provides information on the following services:
Certification & auditing: Third-party food safety audits and certifications, which are integral components of supplier selection and regulatory compliance. Accurate
Livestock Research Innovation Corporation was established in 2012 with support from Ontario’s beef, pork, dairy and poultry sector organizations and the Ontario Ministry of Agriculture, Food and Agribusiness. LRIC’s mission is driving innovation, and the organization takes a value chain approach to research and innovation by providing leadership in research priority setting, coordination and process; identifying and communicating emerging issues; and strengthening networks across the sector. LRIC is funded in part by the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a five-year, federal-provincialterritorial initiative.
technical resources, expertise and insight for a wide range
A one-stop solution for food product compliance and formulation, from concept to finished product, including food and label compliance, packaging, product and process development, and shelf-life and product evaluation.
Somerville got her start in the livestock industry showing beef cattle in 4-H in her pre-teen years, and has been involved with various cattle organization boards, including the Ontario Angus Association and Canadian Junior Angus Association.
Training and education: Training for the global food and beverage industry across the supply chain as an
accredited International Association for Continuing
safety services capabilities video, find a list of Canadian food experts, learn about upcoming events and global news releases, submit a question or read an FAQ.
NORTH AMERICAN CATTLE INDUSTRY LEADERS MEET TO DISCUSS CHALLENGES FACING PRODUCERS
The Canadian Cattle Association (CCA) hosted the 3rd 2024 triannual trilateral meeting with its North American counterparts, the National Cattlemen’s Beef Association (NCBA) and Confederación Nacional de Organizaciones Ganaderas (CNOG) during the Canadian Beef Industry Conference in late August.
The trilateral meeting gives an opportunity for leadership to discuss the challenges and opportunities facing beef producers across Canada, United States and Mexico. Topics at this year’s trilateral focused on trade policy, the upcoming review of the Canada-United States-Mexico Agreement (CUSMA/USMCA/T-MEC) in 2026 and international engagement on antimicrobial resistance.
“The beef industry is highly integrated across North America and with the upcoming review of CUSMA in 2026, it is crucial for us to have these trilateral meetings with our friends to the south. With the challenges that our sector is facing globally, we are stronger working together to push back against non-tariff barriers and other unscientific international policies that impact beef producers,” stated CCA President Nathan Phinney.
“NCBA greatly values our relationships with our Canadian and Mexican counterparts and our ability to come together as allies to tackle issues facing cattle producers across North America. In addition to discussing international trade and animal health concerns, I am also encouraged that CCA, CNOG, and NCBA continue standing together to push back against lab-grown proteins. These lab-grown protein companies are trying to capitalize from the incredible reputation of real beef in their efforts to sell ultra-processed products created in bioreactors. Together, we are working to ensure lab-grown proteins are properly regulated and transparently labeled to avoid consumer confusion with our products that are made with only one ingredient, beef”, said NCBA President Mark Eisele
“The North American trading relationship is key for our country. Mexico is growing in exports in the agricultural sector and specifically beef and cattle is competing with products like beer, tequila, and avocados”, stated CNOG President Homero García de la Llata.
Through CUSMA, beef producers across all three countries benefit from the market-based demand for our product. As we approach the 2026 review, the combined leadership of CCA, NCBA and CNOG are emphasizing the success that it continues to bring to our industry.
At the same time, we’re looking at opportunities to work together against global challenges including non-tariff barriers we are facing in other jurisdictions and international commitments that impact the cattle sector. Despite recognizing antimicrobial resistance as an urgent global one-health threat, the North American beef sector is aligned and pushing back against unfounded antimicrobial reduction targets without considering sector specific needs. Responsible antimicrobial stewardship is essential to supporting the health and welfare of cattle, which includes increased access to veterinary products.
Leadership discussed their concerns of how the labour action will have unintended negative trade consequences across North America and agreed that this work stoppage needs to end quickly.
CCA, NCBA and CNOG leadership determined a unified approach to address international challenges facing the countries’ producers and will continue to work on these files together, in lead up to the next trilateral meeting in San Antonio, Texas in 2025.
RISING PER CAPITA CONSUMPTION EXPECTED IN MEXICO OVER THE NEXT DECADE
By Jim Eadie, Swineweb.com
According to the USDA’s latest 10-year projections, Mexico’s per capita consumption of poultry and red meat is set to see continued growth through 2033. By the end of this period, total meat consumption is expected to reach 82.5 kilograms per person, which equates to about two-thirds of the projected U.S. consumption, estimated at 124 kilograms per person in 2033.
Mexico’s growing appetite for meat has been fueled by several factors over the past few decades, with significant credit given to trade agreements such as the 1994 North American Free Trade Agreement (NAFTA) and its 2020 successor, the United States-MexicoCanada Agreement (USMCA). NAFTA played a crucial role by gradually eliminating restrictions on U.S. and Canadian meat and agricultural imports, which led to an increase in the availability of market-priced livestock feed. This, in turn, spurred substantial growth in Mexico’s domestic meat production, particularly in pork and chicken.
As Mexico’s economy benefited from the trade agreements, domestic meat supply grew in response to rising demand. A significant portion of this demand has been met by imports, especially from the neighboring United States.
The USDA’s projections indicate that poultry consumption in Mexico will increase from 38.3 kilograms per capita to 43.8 kilograms by 2033. Pork consumption is also expected to rise, from 20.2 kilograms to 22.6 kilograms per capita. In contrast, beef consumption is projected to see more modest growth, increasing from 15.7 kilograms to 16 kilograms per person over the next decade. Overall, domestic production for all three meats is anticipated to rise by 22% to 25% by 2033.
“Based on the assumption that current policies remain in place, the projected increase in Mexico’s per capita meat consumption is supported by expectations that meat imports will grow and that domestic meat production will increase,” the USDA stated.
In terms of imports, the USDA projects a significant increase in chicken imports, with a 31% rise expected by 2033. Pork imports are anticipated to grow by 17%, while beef imports are expected to decline by 5% during the same period.
RESEARCH
SAYS BEEF INDUSTRY CAN REDUCE EMISSIONS BY UP TO 30%
New research recently published in Nature Food, from the University of Minnesota's Institute on the Environment (IonE) and The Nature Conservancy, outlines actionable steps the U.S. beef industry can take to reduce greenhouse gas emissions by up to 30%.
Greenhouse gases resulting from human activity have been the largest driver of climate change since the mid-20th century—especially from agriculture. The U.S. beef industry alone is responsible for 3.3% of the nation's total emissions, and even with greater reduction commitments among beef industry partners and meaningful gains over the past 50 years, the highly complex supply chain remains a barrier.
Rylie Pelton, lead author and research scientist with IonE, and fellow researchers developed and applied the first county-level, location-specific assessment of the beef industry's environmental impact, which identified geographic emission hotspots along the supply chain.
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
THE RESEARCH FOUND:
Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility
By Amy Reid, Peace Arch News
• The U.S. beef industry currently emits nearly 258 million metric tons of greenhouse gases each year.
A federally licensed beef processing facility is in the works in Surrey, BC.
• Emissions from feed production associated with beef sourcing and confinement, such as feedlots, are concentrated in the Great Plains and Midwest, while emissions from grazing tend to be more evenly distributed across the West.
“There’s a new building coming forward, a new abattoir, I think that’s the French pronunciation of slaughterhouse,” said Councillor Mike Starchuk. “So Surrey will have a newer facility with a better capacity so people will have the ability to not have to ship an animal to Alberta to have it processed. The applications have gone through the Agricultural and Food Sustainability Advisory Committee.”
The facility is proposed on a 25-acre property within the Agricultural Land Reserve at 5175 184th St. The planned 30,000-square foot abattoir in Cloverdale would process up to 100 head of cattle per day.
• Nearly a third of greenhouse gas emissions could be mitigated through the implementation of alternative practices in grazing, feed production, confinement and processing. 42 alternative practices were investigated across the supply chain, including strategies such as cover cropping, feed additives and energy management.
According to a city report, that would make it larger than any other processing facility in B.C.. But it would still be small by industry standards, compared to the largest meat processing plants in Alberta that process 3,000 heads of cattle per day.
The proposed facility would be fully enclosed and designed
"The beef supply chain is one of the country's most intricate food production systems, making it difficult for beef processors to identify opportunities for reducing their emissions," said Pelton. "Our highly tailored assessment offers distinct recommendations for different parts of the country, including concrete steps the beef industry can take to reduce their greenhouse gas emissions and increase the carbon sequestration in soils and working lands."
so as to not emit odours. And while there is an operational 6,000-square-foot abattoir on the property now, it’s can
but it’ll be a big upgrade from the site currently.”
Through the assessment, researchers outlined immediate action the beef industry can take to begin reducing greenhouse gas emissions based on regional geographic characteristics and accessible mitigation strategies. For example, Pelton and her team identified a significant opportunity to add trees to pasturelands in the Southeast to store more carbon in grazing areas. In the Northern Great Plains, the team found potential benefits in repairing degraded wetland areas to achieve the same result.
"Sustainability needs to be business-as-usual in the U.S. beef industry to ensure stable, long-term food production and economic security for ranchers and their communities as well as a healthy environment for us all," said Kris Johnson, co-author and director of The Nature Conservancy's North America Agriculture program. "This research helps the industry and other decisionmakers identify actionable steps to achieve climate targets while delivering a product that meets consumer expectations."
The research also represents an expansion of IonE's FoodS3 model, pronounced "foods cubed," which analyzes the sustainability of food industry supply chains to provide actionable recommendations for reducing environmental impact.
"These are our first published results that feature location-specific data on emissions in the animal stage of the supply chain," said Jennifer Schmitt, FoodS3 research lead and co-author of the paper. "We are excited to share how our model can bring increased transparency to U.S. agricultural supply chains and identify steps companies and industry can take to reduce their carbon footprint."
THE POLITICS OF DELI SANDWICHES
By Joseph Falzata
Imagine you were a business owner who just opened a small deli shop in Gatineau, Quebec. The meat you sell has been inspected by the provincial authorities and has passed all provincial safety regulations. Finally, ready to begin selling, you drive just over the Macdonald-Cartier Bridge to Ottawa, where you plan to organize a pop-up shop to spread your business’ name. Your day could end with a smile, new customers, and a series of compliments over your delicious ham-andcheese sandwiches, or it could also end with you in handcuffs, being pushed into the back of a car by the Ontario Provincial Police.
While the above scenario is somewhat exaggerated, the headaches from internal trade barriers are nothing but real. Provincial regulations within the agriculture industry make selling meat and other animal products an incredibly tedious task, and limit market access for farmers and other producers.
The Canadian Federation of Independent Business’ (CFIB) Monthly Business Barometer uses survey data from its members to track the general state of business health across various sectors and provinces. The August 2024 iteration of the survey discovered insufficient demand was the primary factor limiting growth and productivity among the agriculture sector, affecting half (50%) of agriculture businesses nationwide.
Expanding markets by removing trade barriers could greatly soften the demand issue in the agriculture industry, and is something CFIB has advocated for years. Reduced interprovincial trade barriers could also ease the strain of the sky-high cost of doing business. CFIB data shows fuel costs are the biggest cost constraint for agricultural producers, with eight in ten (80%) businesses struggling with rising prices. If border towns were able to trade with neighboring provinces, it could mean shorter shipping times, and therefore less money spent on transport.
The Lloydminster Food Trade Pilot, a project heavily influenced by CFIB recommendations, is the first such pilot project aimed at examining the benefits of removing trade barriers for food products. Under current federal regulations, food-based businesses must meet certain requirements and be licensed by the Canadian Food Inspection Agency (CFIA) if their products cross borders. This is an especially challenging task for small businesses, since achieving federal standards can be an expensive and time-consuming requirement, and often discourages businesses from expanding their operations into other provinces.
CFIB’s Interprovincial Cooperation Report Card - assessing federal, provincial, and territorial (FPT) governments’ progress in reducing interprovincial trade barriers last year. A jurisdiction's score increases with its level of interprovincial cooperation efforts.
Since the border town of Lloydminster is split down the middle between Alberta and Saskatchewan, current laws restrict meats produced on Albertan side of the city from distribution on the Saskatchewan side. However, the pilot project removes the interprovincial trade barriers within the city and allows it to operate just like any other city within Canada.
Despite inspection regulations being different on each side of the city, there have been no problems since the pilot began regarding the quality and safety of food on either side of the border. There have been benefits, however, for the local community, as the city celebrates improved access to goods. Gas stations on the Saskatchewan side of Lloydminster, for example, are now able to sell deli sandwiches made on the Alberta side of the city, which pilot project advocates claim has been “extremely helpful” for the community.
The City of Lloydminster and other border towns wouldn’t be the only winners if provincial trade barriers were lifted across the country. In fact, CFIB’s recent State of Internal Trade report estimated that removing interprovincial trade barriers could result in a $200 billion boost to the overall Canadian economy each year. If governments are serious about protecting the agriculture industry, lowering burden of high fuel costs, and improving market access for farmers struggling with low demand, limiting barriers on internal trade must become a priority going forward.
Joseph Falzata is a Public Policy Intern for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and mediumsized businesses with 97,000 members across every industry and region, including 4,900 in the agriculture industry. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
https://www.yesgroup.ca
201 Don Park Road Unit 1, Markham, Ontario, L3R 1C2 Phone: 905-470-1135 1-800-465-3536 Fax: 905-470-8417
Website: www.yesgroup.ca email: sales@yesgroup.ca
Remco and The Yes Group Protecting
your Customers
Remco products are colour-coded to help divide the production cycle into different zones. By identifying these zones as different cleaning areas, the movement of bacteria around the production area can be blocked.
Our products were developed with the Hazard Analysis Critical Control Point (HACCP) in mind.
No matter what colour-coding plan is implemented, Remco Products from The Yes Group provides significant added value at no additional cost. From scoops to squeegees, from brushes to shovels, we have the products and the colours to enhance any professional quality assurance program.
