Our March Issue

THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE

March 2022

SUSTAINABILITY IN THE MEAT INDUSTRY: A TOP THEME AT IFFA 2022 World Central Kitchen to Feed Refugees Fleeing from Ukraine Commercial Cold Storage Outlook Improving Processing Capacity in Ontario’s Meat and Poultry Sector CCA and NCFA Call for Resolution of Impending Rail Strike Time to Press Pause on the Federal Carbon Tax meatbusinesspro.com

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World Central Kitchen to Feed Refugees Fleeing from Ukraine Sustainability in the Meat Industry: A Top Theme at IFFA 2022

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Commercial Cold Storage Outlook

Improving Processing Capacity in Ontario’s Meat and Poultry Sector

How to Design a Successful Food Processing Facility

CCA and NCFA Call for Resolution of Impending Rail Strike Time to Press Pause on the Federal Carbon Tax

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THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE

March 2022 Volume 25 Number 3 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca

WORLD CENTRAL KITCHEN TO FEED REFUGEES FLEEING FROM UKRAINE

DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Cam Patterson, Scott Taylor, Martha Roberts, Stacey Wilks, Alana Hilton, Virginia Labbie CREATIVE DIRECTOR Patrick Cairns

Meat Business Pro is published 12 times a year by We Communications West Inc.

Chef José Andrés has mobilized his non-profit World Central Kitchen (WCK) platform, setting up on the Ukraine-Poland border, to make and distribute countless meals to refugees escaping the Russian invasion.

Chef José Andrés is outspoken about human rights issues and WCK was founded on the premise of providing aid through food because “food is a universal human right”.

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Since the Russian military attack, more than one million Ukrainian citizens have fled their homes for the Polish border. Many arrive after days spent travelling with no food. The majority of refugees are women and children, with all men aged 18-60 required, by Ukrainian law, to stay and fight for their country.

WCK identified an impending food crisis and has set up multiple food preparation points. A 24-hour pedestrian border crossing point in southern Poland played host to a hot food service point within hours of the invasion beginning. Today, the WCK team is in position at more than eight border crossings. It has partnered with restaurants in Ukraine as well, with courageous chefs setting up in five cities including Odessa and Lviv.

As refugees continue to flee and fighting escalates, talk of Russian troops invading other neighbouring countries has begun. With this in mind, WCK has set up positions in Romania and Moldova, with Slovakia and Hungary soon to be included. The organization has pledged to be on hand to provide nutritious food to as many innocent civilians as possible.

“Wherever there’s a fight so hungry people may eat, we will be there – we must be there,” Reads the mission statement. WCK responds to world crises and aims to be one of the first on the frontlines to support. The effort to bring food to people fleeing the Russian invasion is the latest in a long list of reactive mobilizations.

For more information, visit https://wck.org/ meatbusinesspro.com

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SUSTAINABILITY IN THE MEAT INDUSTRY: A TOP THEME AT IFFA 2022 Sustainability is a catalyst for change and innovation in the meat industry. Political requirements and nutrition-conscious consumers are driving producers and manufacturers to act. Additional pressure is being generated by the global debate on climate protection and resource conservation. The meat processing industry is responding to this with technological innovations, but also with fundamental corporate commitments to sustainable solutions.

The discussion about sustainable production in the meat processing industry essentially concerns issues of environmental protection, health and animal welfare.

In connection with climate protection, the high CO2 emissions, the equally high water consumption and the packaging waste produced, which consists mainly of plastic packaging, are the focus of criticism.

The influence of meat consumption on the greenhouse effect is undisputed. In Germany alone, 42.7 million tons of CO2 per year are attributable to meat consumption, in addition to water consumption of 60 trillion liters. The average water footprint per calorie is particularly high for beef, about twenty times higher than for cereals. It is estimated that switching to a diet, low in meat, could result in water savings of 11 to 35%.

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It is not only since the "Fridays for Future" movement that more and more consumers are questioning their dietary behavior. In addition to environmental aspects, they are particularly concerned about animal welfare.

According to a Eurobarometer survey conducted in April 2021, around one-third of Europeans buy and eat less meat, and 16 percent take the carbon footprint of their food into account when shopping and adjust their purchases accordingly. Meat substitutes based on plant proteins as well as vegan and vegetarian alternatives are experiencing a real boom and reflect the trend toward sustainable and animal-friendly foods. IFFA 2022 picks up this trend and will open up to alternative protein sources. In addition to its focus on meat, the trade show will present processing technologies and ingredients for plant-based proteins for the first time.

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POLITICAL DIRECTIVES FOR MORE CLIMATE PROTECTION

NEW TRENDS IN MACHINERY: RESOURCE AND ENERGY MANAGEMENT

The discussion about more sustainable food production is also being promoted by political requirements. In its "Green Deal," which calls for a reduction of greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, the European Union also places an obligation on food producers. In its strategy document "From farm to table" (May 2020), the Commission calls for, among other things, greater energy efficiency, less packaging and the use of innovative and sustainable types of packaging made of reusable materials.

The meat processing industry is one of the high energyintensive sectors. Heating and cooling food requires large amounts of energy. Cold is needed to chill meat to ensure food safety, among other things. Heat is needed for cooking, steaming, simmering, sterilization and cleaning. In addition, there is water consumption for cleaning and disinfecting manufacturing facilities.

In light of these societal changes and political framework conditions, numerous meat processing companies have integrated guiding principles for sustainable production into their corporate mission statements. Although around 90% of meat producers' emissions result from the supply chain or from the animals themselves, meat processors also see it as their duty to optimize their processes with regard to energy and resource management. Of course, they also have their own interest in this, because saving energy and water not only boosts their image, it also lowers their overall operating costs.

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Of course, water must also be heated accordingly. As in many other industries, this is still largely done using fossil fuels. In addition to efforts to increase energy efficiency, switching to renewable energies - and thus reducing the carbon footprint - is therefore another lever for greater sustainability in the meat processing industry.

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Another step towards sustainability are machines with durable components and modern hygienic design, such as welded and rounded edges and recessed flush covers. They offer less contact surface for dirt and germs, and cleaning requires less water and energy. In addition, cleaning times are shortened by automatic cleaning-in-place (CIP) equipment.

Energy-efficient refrigeration and heat pump solutions can improve energy efficiency in heating and cooling by up to 70%. Waste heat, which would otherwise be wasted, is reused and diverted to other processes such as water and brine heating, drying, cooking, blanching, pickling, pasteurizing, sterilizing, dehydrating and cleaning. To ensure a sustainable cold chain, compressor-based process cooling systems, among others, are used to provide thermally optimal production environments - not only for the food itself, but also for storage and distribution areas.

With regard to food safety, the motto for water consumption is: "As much as necessary, as little as possible”. In order to reduce water consumption to a minimum, various options are to be considered, such as recycling wastewater in company-owned or municipal wastewater treatment plants. Innovative monitoring and measuring systems that analyze water consumption and identify parameters for further reduction are also of great help When it comes to renewable energies, solar thermal energy, heat pumps, biogas or biomass are suitable, since most processes require temperatures below 100 to 120 degrees. With cogeneration, electricity and heat can be efficiently provided from biogas or biomass from residual materials.

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Savings can also be achieved through modern drive technology, such as servo motors. Energyefficient, frequency-controlled drives achieve energy savings of up to 25%, and switch-on or switch-over current peaks are reduced. In addition, the motors are water-cooled and thus offer the possibility of direct use or recovery of waste heat.

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Another trend: smart packaging that actively takes care of the meat product, protects it and thus has a sustainable effect. It keeps temperatures stable, absorbs unwanted ripening gases and prevents germ infestation. Researchers at the Fraunhofer Institute for Process Engineering and Packaging (IVV) are working on appropriate solutions. This way, not only low-emission technologies and processes, but also material-saving, recyclable and smart packaging will contribute to climate-neutral production.

The EU is promoting efforts to improve energy management, for example through projects such as ICCEE ("improving cold chain energy efficiency"). The aim of the project is to improve the energy efficiency of the entire cold chain of the food and beverage sector for small and medium-sized companies. For various sectors such as meat or beverages, the Food Testing Institute offers workshops on this.

From May 14 to 19, 2022, IFFA, the Leading International Trade Fair - Technology for Meat and Alternative Proteins, will open its doors in Frankfurt am Main. Internationally renowned companies will present their latest technologies and provide information on the most important trends and developments in the meat and protein processing industry.

PACKAGING TRENDS: MORE THAN JUST A COVER When it comes to packaging, many consumers no longer reach straight for the shelves, but instead pay attention to sustainable, environmentally friendly solutions. Accordingly, plastic-free and plasticreduced packaging is a sustainable trend in packaging technology. However, sustainability often counteracts food protection. This is because paper composites or packaging with recycled content allow more oxygen to penetrate, which can impair product quality. This can be remedied by oxygen absorbers, for example based on polymers, which bind the residual oxygen in the packaging and the penetrating oxygen and whose functional layer is integrated in the multilayer structure.

In addition to the issue of recyclability, research is focusing on renewable raw materials. Algae -based plastics and transparent films, made from hemp or cardboard made from grass, bio-based packing provides an alternative to plastic made from fossil raw materials.

One of the top topics at IFFA is sustainability: the EU wants to become climate-neutral by 2050, which also poses major challenges for the meat and protein processing industry as well as the packaging industry.

They must improve their energy efficiency and produce in a way that contributes to the conservation of the world’s natural resources.

With six trade fairs on four continents, Messe Frankfurt is accompanying the dynamic growth of the global food industry. For more information on the events in the "Food Technologies" portfolio, go to: www.foodtechnologies.messefrankfurt.com

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COMMERCIAL COLD STORAGE OUTLOOK

By Martha Roberts

The pre-COVID Canadian cold storage landscape was growing, with trends in domestic and global food markets driving much of that demand. Since 2019, quick growth of the pharmaceutical industry and enhanced food safety standards have led to roughly 8% growth in capacity.

PRE-COVID DEMAND FOR COLD STORAGE ON THE RISE

Some analysts expect the North American cold storage market size to reach US$86.5 billion by 2028. That would be expanding at a 10.7% compound annual growth rate. As we approach our third pandemic year, the question is how COVID’s upheaval has impacted the market for cold storage.

While rising Canadian food trade (e.g., meat and vegetables) may also influence the demand for cold storage, we know that COVID-19 has shifted domestic and global food consumption trends. In Canada as elsewhere, the pandemic has amplified consumer preferences for fresh and locally produced food, and it has furthered growth of online shopping models.

The cold storage market has experienced significant growth over the past three or four years, thanks to population growth and consumer preferences for more fresh, perishable food that’s temperature sensitive.

Demand was evident in rental lease rates for facilities that were trending higher. Because refrigerated warehouse buildings are usually built for a specific tenant, lease terms tend to be lengthy. Lessees can sublet space to other businesses, but those industry characteristics limit availability for new or expanding businesses. That’s worsened by high start-up costs, including construction for a new refrigerated warehouse ranging between $325 to $450+ per square foot. Along with hefty service fees for facilities, these features may deter smaller companies from entering the cold storage space.

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characteristics limit availability for new or expanding businesses. That’s worsened by high start-up costs, including construction for a new refrigerated warehouse ranging between $325 to $450+ per square foot. Along with hefty service fees for facilities, these features may deter smaller companies from entering the cold storage space.

GROWTH IN COLD-STORAGE FOOD TRADE COOLS RECENTLY

The cold storage market has experienced significant growth over the past three or four years, thanks to population growth and consumer preferences for more fresh, perishable food that’s temperature sensitive.

Demand was evident in rental lease rates for facilities that were trending higher. Because refrigerated warehouse buildings are usually built for a specific tenant, lease terms tend to be lengthy. Lessees can sublet space to other businesses, but those industry

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Canada’s agri-food sectors have set ambitious goals for exports by 2025. Thanks to strong global demand and higher prices, Canadian agri-food export values grew to $81.2 billion in 2021. Canada’s overall food export volumes also trended upward between 2015 and 2020, with fats and oils (HS15) growing at a 5.6% average annual rate and meat (HS02) with 4.9% average annual growth. While higher export targets have increased production capacity and need for larger cold storage space, a volatile pace of both imports and exports could create periods of under- and over-capacity storage utilization.

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peaked in Year 2 of the pandemic. As one of the world's largest frozen fruit exporters by volume, Canada had an annual average growth of 10.8% between 2016 and 2020. But in 2021, frozen fruit exports dropped 19.2%.

Domestic purchases of cold storage food (by volume) showed similar patterns of upheaval, growing 7.1% in 2020 YoY, which reversed with a YoY 2.1% loss in 2021, according to Nielsen. Canada’s frozen meat stocks were 4.7% higher YoY in Q1 2020 and 9.9% higher quarterover-quarter, largely driven by COVID’s disruption of food services.

However, it appears that the pandemic has generally upended 5-year (2015-2019) cold-storage food export growth trends (Figure 1). The first year of COVID differed significantly from the previous five years. And the second year differed significantly from the first for Canada’s largest cold-storage food export categories.

The last two years have also changed cold-storage food import trends (Figure 2). Meat imports rose in 2020, which may have contributed to cold storage demand.

However, since then, meat imports by volume have fallen not only year-over-year but also at a stronger pace than the 2015-19 average. Across the board, imports of cold storage foods except for fresh and frozen fruits have fluctuated significantly since the pandemic began.

The disruptions created by COVID to domestic and global food consumption trends have hit cold storage food export categories more than exports of fats and oils (HS15), Canada’s largest dry food export category (and third-largest food export category overall). HS15 exports in 2020 were in line with the previous fiveyear average. Although 2021 exports fell, the reversed trend was due solely to a decline in canola oil exports precipitated by the drought that decimated the 2021 canola crop.

Stronger export demand boosted meat shipments by 13% YoY in 2020, which was reversed in 2021. At the same time, export demand for non-aquatic meat products (e.g., sausages and prepared meats) only

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THE PANDEMIC CREATES MORE DEMAND It’s not clear how long the pandemic will disrupt supply chains and trade, but the longer-term outlook for global food demand and trade is positive, and it will drive storage needs.

The most recent available statistics (November 2021) showed food service sales had rebounded to 1% above their value pre-COVID (February 2020). But that was before the omicron wave. The latest Open Table dinner table reservations data show a decline of 30% from February 2020, suggesting the foodservice industry hasn’t yet found their ‘new normal". No one knows how long it will take the industry to see informative data about the future food business environment. In the meantime, adjusting to an uncertain future is a critical success factor.

BOTTOM LINE The national cold storage sector outlook is positive in the short term, thanks to the evolution of food retailing. Consumer preferences for freshness, health and convenience, undergoing fundamental shifts before COVID have continued to develop. The pandemic has accelerated

Article courtesy of Farm Credit Canada

While trends in food consumption have driven much of the need for cold storage, a simultaneous need for cold storage has come from expanded storage requirements for vaccines and other medical products. Nonetheless, cold storage remains a small share of the industrial warehouse space. There’s currently more expansion of facilities primarily close to transportation hubs and food processing. That includes refitting and adding onto existing facilities and new construction. But the impact of COVID lingers in the uncertainty surrounding the sector’s future.

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THE BEST DEFENSE IS A STRONG OFFENSE PROMOTING THE HEALTH BENEFITS OF MEAT AND POULTRY

By Ronnie P. Cons

Red meat is often wrongly portrayed as being unhealthy. Even chicken has been getting attacked by some in the media as unhealthy or not environmentally friendly.

Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced many families to cut back on their meat and poultry purchases. Perceptions may reality but truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families.

They are also aware that a lot of false information is out there and as such, are open to scientific facts that can correct their New investments will increase efficiency misconceptions.

liver, 625 grams of cooked beef or an astounding 2.4 kg of spinach.

Iron found in vegetables is harder to absorb than the iron

IMPROVING PROCESSING CAPACITY INattached ONTARIO’S found in meat as it is to fibre which inhibits its absorption.

MEAT AND POULTRY SECTOR

and optimize food safety inmeat provincial This provides an opportunity for retail departments to implement an instore ‘Healthy Meat Facts’ nutritional meat plants

campaign to set the record straight and convince their customers that meat and poultry are actually good for one’s The Governments Canada and Ontario aredecrease investing health and that theyofshould increase rather than $900,000 through Canadian Partnership their purchases of it.the The campaignAgricultural outlined below can have toa launch an innovative direct impact on sales: tool to connect meat and

poultry with abattoirs that have available Start byfarmers displaying instore posters promoting the nutritional processing capacity and to support recruitment, value of meat. They should be innovative, eye catching and be designed specifically contradict any industry. meat myths. The retention andtotraining initiatives in the

comments should all be literature based quoting research papers or MDs for maximum effect. Various posters should The new Farmer-Processor Connections Initiative, led be made - each with a brief but powerful message covering by Meat and Poultry Ontario and AgSights, is designed one theme.

to connect farmers in need of processing with abattoirs Posters can convey the following healthy meat fact that have additional capacity. This program will help messages: relieve processing capacity challenges and supply chain 1. Let’s IRON out the Truth on Meat! disruptions, help food processing businesses use their “You would need to eat a massive amount of spinach to full capacity and help meat and poultry farmers get equal (the iron content) in a steak,” says Christopher Golden, their products to domestic and international markets an ecologist and epidemiologist at Harvard University in faster.

Cambridge, Massachusetts. (As quoted by nature.com in the article ‘Brain food- clever eating’.)

Additionally, and her Poultry Ontario and For a womanMeat to receive recommended dailyEIO intake of 18 mg of iron, she would need just 300 grams cooked bovine Solutions are partnering to develop and of implement a full suite of human resources tools to support meat and

2. Eat Meat for a Healthier Brain!

Being deficient in the micronutrients found in meat have been poultry processing plantsdepression in Ontario,and with recruitment, linked with low IQ, autism, dementia says retention, training, anda policy development.

These of Dr. Charlotte Neumann, paediatrician at the University California, as quoted in the article ‘Brainwill foodclever eating’. dedicated and tailormade resources optimize

food safety knowledge provincially Zinc is crucial for learningand andculture memory.inVitamin B12 licensed plants,that while addressing preservesmeat the sheaths protect nerves. ongoing labour challenges.

3. Boost Your Immunity with Meat!

Due to its antioxidant powers, zinc is involved in creating antibodies to fight free radicals that increase our risk for chronic diseases.

4. Power Your Muscle Growth with Meat!

The protein in meat helps build and repair body tissues.

Muscles are made of protein. That is why athletes who are building muscle strength increase their meat consumption.

The protein and zinc found in meat are important for muscle growth and repair.

5. Meat is the Complete Protein!

Meat contains all of the nine essential amino acids that your body cannot make by itself. Say ‘hello’ to histidine, leucine, isoleucine, lycine, methionine, phenylalanine, tryptophan, threonine, and valine. That is why meat is called a complete protein.

6. Eat Meat for a Healthy Heart!

Meat contains lots of the B vitamins needed for the production of hormones, red blood cells and for the proper functioning of your nervous system.

Say ‘hello’ to niacin, folic acid, thiamine, biotin, panthothenic acid, vitamin B12 and vitamin B6. They are all found in meat.

The line that ‘the best defense is a good offense’ does not only apply to sports. It also applies to countering negative meat health myths. an instore Meat "Having access to aImplementing skilled workforce and‘Healthy a consistent Facts’ nutritional campaign to set the record straight on supply are both essential to ensuring efficiency andmeat and poultry. It is a good way to go on the offensive by using maximizing capacity for Ontario's meat and poultry education your customers and increasing your sales..

processors," said the Honourable Marie-Claude Bibeau, Ronnie P. Cons is CEO of C&C Packing Inc., a leading Canadian distributor of the Minister Agriculture and Agri-Food. meatfederal and poultry.

He can be of reached at RCons@CCpacking.com.

"With this funding, farmers and processors will be able to ensure a stable supply of high-quality meat both in Canada and around the world."

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“Ontario’s meat and poultry producers work tirelessly to ensure that Ontarians have access to fresh, local, and high-quality meat products for their families.” said Lisa Thompson, Ontario Minister of Agriculture, Food and Rural Affairs. “We have heard concerns about processing capacity shortages, and that is why our government is stepping up with this important investment, so that we can continue to meet the demand for Ontario’s high-quality meat products.”

QUICK FACTS • The Farmer-Processor Connections Initiative is

developed by Meat and Poultry NSF INTERNATIONAL FOCUSES ONOntario (MPO).

• The Canadian Agricultural is a CANADIAN FOOD INDUSTRY WITHPartnership NEW five-year, $3-billion commitment by Canada’s federal,IN provincial and territorial governments WEBSITE FOR SERVICES CANADA that supports Canada’s agri-food and agri-

products sectors. This includesand a $2 fast-changing billion Global public health organization showcases services for Canada’s growing commitment that is cost-shared 60% federally food industry and 40% provincially/territorially for programs NSF International in Canada recently launched a new accredited Association forby Continuing that areInternational designed and delivered provinces website - www.nsfcanada.ca - to give Canada’s growing Education and Training (IACET) site. Topics include HACCP, and territories. and complex food and beverage industry easy access to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s global services dedicated to food safety and quality.

The funding announced builds on the more than $14 Evolving regulations across countries and increasing million invested last year through two intakes for the complexities associated with a globalized food supply Meat Processors Capacity Improvement Initiative.

Sincein network present challenges for NSF International clients JuneCanada 2018, and botharound the federal andThe provincial governments the world. new Canadian website haveoffers committed million in companies cost-sharenavigate support expertiseover and $110 services to help thesethan challenges, including through certification auditing, to more 5,500 projects theand Canadian consulting, technical services, training and education, Agricultural Partnership (the Partnership) to help foodOntario and labelfarmers, compliance, packaging, and product eligible processors, businesses andand process development. sector organizations innovate and grow.

food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging, • microbiology There are more 480 provincially food and than ISO standards.

Training licensed modalities and eLearning, 230 federally licensed facilities include on-site, customized and(abattoirs open enrolment.

and free-standing plants) in Ontario.

Additionally, the websitemeat includes information about management system registrations for the food, automotive, • In 2020, the Ontariosecurity, agri-food sectordevices, environmental, information medical aerospace and more chemical industries, wellinasOntario for Ontario supported than 720,000asjobs drinking water programs. and contributed $45.0 billion to the province’s Visit economy. the new Canadian website at www.nsfcanada.ca to review the food safety services capabilities video, find a list of Canadian food experts, learn about upcoming events and global news releases, a question YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 submit 2014-05-16 1:20:17 PMor read an FAQ.

NSF International’s Canadian website provides information on the following services:

Graham Dalziel, President of Meat & Poultry Certification auditing: audits Ontario, stated, & "We thank Third-party the federalfood andsafety provincial and certifications, are integral government for theirwhich partnership andcomponents support forofthis supplier selection and regulatory compliance. Accurate project.

This funding will enable us to strengthen our audits are the first step toward successful verification foodofprotection and assurance programs, and explore a company’s food safety system, providing improved ways to address capacity by matching farmers with brand protection and customer confidence.

Certifications processors that immediate availabilities." and audits arehave available for animal and produce in the agriculture industry, GFSI certification and management system registration.

Consulting: A full-service team approach providing technical resources, expertise and insight for a wide range of food safety and quality services. NSF International provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services from on-site temporary or permanent technical staffing placements, and various types of consulting.

Technical services: 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.

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Training and education: Training for the global food and beverage industry across the supply chain as an meatbusiness.ca meatbusinesspro.com

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HOW TO DESIGN A SUCCESSFUL FOOD PROCESSING FACILITY

By Stacey Wilks and Alana Hinton

As the second-largest manufacturing industry in the Canadian food supply chain as a percentage of GDP, it’s no surprise there are approximately 10,286 food manufacturing businesses located across the country.

Under the food manufacturing umbrella, various subsectors have distinct design and layout requirements for their facilities. The table below shows the number of businesses in each sub-sector across Canada, as reported in 2021.

For example, the layout requirements within the meat processing industry will differ whether the plant is for slaughter, raw, or ready-to-eat products. And a flour mill will look entirely different from a bakery. But all facilities have one thing in common - they transform a raw ingredient into a finished product.

Overall, the design and layout of a facility will impact the functionality and overall attractiveness on the market. Some designs and layouts can be adapted for various uses and sectors, but others are less versatile.

Appropriate planning is essential, whether looking for a facility to start production or planning for expansion by constructing a new one.

All food processing businesses operate out of facilities that follow strict regulatory requirements to ensure food safety. Building designs are optimized for production efficiency, with each layout unique to the manufactured products.

PLANNING FOR GROWTH Food production sales are increasing year after year. Therefore, accommodating business growth by expanding a production facility can take place in several ways, including renovation, expansion or new construction. In the site selection process for new development, a larger parcel of land is attractive for more flexibility and future expansion opportunities.

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Optimizing production flow within the plant requires adequate floor space to accommodate the processing lines, including various machinery, conveyors, and the utilities that service the equipment. The choice of materials is also crucial for the ability and ease of cleaning and sanitizing the production areas. To reduce the need for significant plant renovations, the versatility of the building design and layout to allow production equipment to be easily interchanged is important.

Hiring a contractor specializing in food processing plants is essential for successfully executing a new construction or renovation project. This expertise will assist with a plant design and layout, that ensures regulatory compliance and optimal production.

Regulatory criteria can be at the municipal, provincial or federal level, dependent upon where the final product is going.

Several voluntary programs also impact the facility layout and run concurrently with the mandatory requirements. These voluntary programs elevate the profile of the production facility, making the final product more attractive in the marketplace. Program examples include Hazard Analysis & Critical Control Point (HACCP), British Retail Consortium (BRC) and Safe Quality Food (SQF) to name a few.

Automation is one way to maximize production in available space, highlighting the need for this versatility in the design. This includes floor space, building height, and utilities such as adequate power supply for automated production lines. Increased automation can be expensive, but also an attractive investment, as it can increase productivity in a climate of skilled worker shortages.

MAXIMIZING EFFICIENCY THROUGH LAYOUT • Food safety • Production efficiency • Cleanability • Versatility Four main considerations to keep in mind when planning a project:

BOTTOM LINE

With the strain on supply chains, the exterior flow of truck traffic for shipping and receiving is as critical as interior production flow. Getting raw ingredients in and the finished product out as fast as possible is a concern now more than ever.

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Food safety and production efficiency are key elements in every food processing facility, and each type of business has unique requirements. When planning for growth, a professional with expertise in food plant construction can ensure the layout of the production facility contributes to attaining food safety and production goals.

Article courtesy of Farm Credit Canada

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CCA AND NCFA CALL FOR RESOLUTION OF IMPENDING RAIL STRIKE It was announced recently that more than 3,000 railroad workers at Canadian Pacific (CP) have voted to authorize strike action which could begin as soon as mid-March.

The Canadian Cattlemen’s Association (CCA) and the National Feeders’ Association (NCFA) are highly concerned about the potential impacts of a rail strike, including devastating consequences to Canada’s beef industry.

James Bekkering, NCFA Chair stated, “A rail strike would be devastating to our industry. With last year’s drought and recent transportation issues, feeders have been reliant on CP rail bringing up feed from the U.S. If trains stop moving, there will be no other options.”

Western Canadian cattle producers are dependent on feed shipments from the U.S. because of the hardhitting drought producers faced last year from BC through to Ontario. A disruption in shipments of feed grain from the United States will significantly impact the ability of beef producers to feed their cattle. Prior issues with rail and transportation had already reduced feed availability and feeders have been managing their needs on a train-by-train basis. There is no buffer in the system.

Bob Lowe, CCA President said, “We are very concerned about the potential impacts of a rail strike on the ability of beef producers to feed their cattle, particularly feedlots. It is imperative that essential services are not interrupted, including the movement of agricultural products by rail.”

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DF: I don’t think being on the island has really impacted us negatively one way or the other. We’ve traveled a lot, met a lot of other farmers and livestock producers in other parts of Canada, and we all seem to have the same issues and same concerns.

CMB: I understand that your farm was the first in Atlantic Canada to be involved in the TESA program.

DF: Yes, I think we were the first farm east of Ontario as far as I understand.

I’m not sure why the eastern CCA and NCFA are strongly associations wouldn’tencouraging have previously nominated because both sides to reachanybody a solution priorthere to are farms here on In PEIthe doing everya the strikemany action deadline. event bit as much as we are as attain a solution cannot be reached, thetoparties high level of sustainability. Anyway, should move directly to binding arbitration we were very surprised when the PEI to avoid a strike and the resulting necessity Cattleman’s Association nominated our of implementing back-to-work legislation. It farm.

is imperative to prevent the serious CMB: And then you were attending the consequences that would arise from a Canadian Beef conference in Calgary shortage and of critical feed supplies on Canadian you won. beef operations.

DF: Yeah! That was a very nice moment for us. But I don’t like to use the word win actually. However, being recognized for our commitment was real honour.

If you want to know • Droughta 2021 caused a small crop and the truth, it was a pretty humbling what was available was of moderate to good quality. experience. As I said to CBC when they phoned me after the conference, I was just floored, really couldn’t believe it.

KEY CONSIDERATIONS:

• Estimated current available feed supply is CMB: So now that you have been one to two weeks.

recognized, do you think that will draw more attention and garner more • On February 1, 2022, there were 1.1. nominations out of Atlantic Canada million head of cattle on feed in Alberta and going forward?

Saskatchewan.

DF: Absolutely. We’ve gotten a lot of good press highlighting the island • One railcattle car isindustry. estimated to feedyou’ll see I’m positive approximately 8,000 head forofone more farms in our neck the day, woods next year.

And are I have to give thereforenominated 9-10 trains per week needed. the Canadian Cattleman’s Association recognition for choosing a farm from and • According to Statistics Canada, Alberta Prince Edward Island. We are small Saskatchewan corn imports in 2021 were up players in the national beef industry 400%. and I think it was a real credit to their organization to recognize us. They • It is estimated that 1,000 super-B treated all the over nominees royally and it trucks would needed weekly replace was abe real class act.

It was to a wonderful the volume of feed grain currently be experience.

transported by Canadian Pacific Railway trains and trucking capacity is not available leaving no alternative solutions.

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TIME TO PRESS PAUSE ON THE FEDERAL CARBON TAX ADDITIONAL FARM EXEMPTIONS ARE URGENTLY NEEDED

Whether you are a consumer, small business owner or farmer, the rising price of fuel and other necessities have been cutting into your bottom line. With spring seeding just around the corner, many farm business owners are pencilling in sky-rocketing fuel, fertilizer, and crop inputs with no end and no relief in sight.

or sales). Farmers have been encouraged all winter to contact their crop input retailers to secure the supply of many of the products they will need for this upcoming growing season.

Now is the time for the federal government to provide urgently needed relief and hit the pause button on the planned carbon tax hike on April 1st.

New survey data from the Canadian Federation of Independent Business (CFIB) found 77 per cent of agri-businesses say rising prices of inputs (e.g., fuel, insurance, fertilizer, feed, etc.) are having a significant impact on their agri-business. A further 17 per cent say it is having a moderate impact. Seventy-four per cent say these rising prices will not be temporary and will be around for the foreseeable future.

CFIB data also shows 83 per cent of agri-businesses are facing supply chain challenges (e.g., increased time and effort to access the products needed for production 24

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These cost pressures are largely out of the business’ control and are a direct impact of the pandemic and supply chain issues. The distressing events in Ukraine will only make these issues worse. However, there are many areas where the government can take concrete actions to reduce the burden on farmers and small businesses, including halting all upcoming tax hikes.

Almost three-quarters (74%) of agri-businesses say the government is increasing costs for their business.

Federal carbon tax relief would be a good place to start to relieve some of these pressures.

It has made little sense why farmers continue to be taxed to produce food when there are few practical alternatives to the fuels used to dry grain or heat barns and livestock facilities. Despite the leadership that farmers have shown in adopting practices that protect the environment and reduce emissions, farmers continue to be hit with escalating costs as a result of the carbon tax. meatbusinesspro.com

Recently, MP Ben Lobb of Huron-Bruce, introduced a new Private Members’ Bill C-234, An Act to amend the Greenhouse Gas Pollution Pricing Act. This new bill, if passed, would exempt natural gas and propane from the federal carbon tax used for on-farm grain drying, barn heating, irrigation, and steam flaking (a process used to make livestock feed).

In fact, in 2020, our farm members estimated they were paying almost $14,000 in federal carbon taxes when the carbon tax was set at $20 per tonne of CO2. Fast forward to today and CFIB’s latest research indicates these costs have more than tripled to over $45,000 when you factor in carbon taxes on natural gas, propane, fertilizer, and shipping costs.

Imagine what these costs will balloon to in 2030 when the federal carbon tax is $170 per tonne of CO2. Farmers cannot pass these costs on to their customers and it comes directly out of their bottom line. Commodity prices may be high right now but as we know in agriculture, that will not always be the case.

At a minimum, the federal government needs to freeze the federal carbon tax for the foreseeable future given the volatile market the world is facing right now.

It is important to note the federal government has acknowledged the carbon tax issue via a refundable tax credit for farmers. This was announced in the government’s December fiscal update, to rebate carbon tax fuel charges on propane and natural gas. However, the question needs to be asked, why do we not just exempt farmers altogether?

Before the last election, CFIB lobbied members of parliament on this important issue for farmers and also appeared as a witness before the Standing Committee on Agriculture and Agri-Food to support Private Members’ Bill C-206, An Act to amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel).

Unfortunately, this bill died before receiving Royal Assent when the 2021 federal election was called. The good news was Bill C-206 received support from the Conservatives, NDP, Bloc and Greens as well as 1 Liberal MP. The Parliamentary Budget Officer recently estimated that Bill C-206 would have saved farmers $1.1 Billion over 10 years had it passed. This is money farmers could use to reinvest in their business, continue to invest in technology and contribute to their local community.

CFIB will be encouraging all MPs to support this important bill in the weeks and months ahead. In the meantime, the federal government can press pause on the upcoming April 1st carbon tax hike as a way to acknowledge the challenges facing farmers, small business owners and consumers.

Share your feedback with CFIB by contacting our Business Help Line at cfib@cfib.ca or call 1-888-234-2232.

Get involved in our campaign to support Bill C-234 to help support farmers and protect our food supply: https://initiatives.cfib-fcei.ca/en-ca/saveourfarms Not a member? JOIN CFIB today for more help and information.

Virginia Labbie is the Senior Policy Analyst, Agribusiness for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 95,000 members (6,000 agri-business members) across every industry and region. 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.

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