THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
May 2022
MEAT PROCESSING EQUIPMENT MARKET IS ESTIMATED TO PASS $13B BY 2026
13 Trends Reshaping the Way Food is Produced in North America TrustBIX Inc. Announces Agreement with JBS Food Canada FCC: Profitability Challenges Livestock Operations and Suppliers Canada's Global Reputation for Top-quality Beef
meatbusinesspro.com
$7.99
https://www.yesgroup.ca 2
MEATBUSINESSPRO May 2022
meatbusinesspro.com
May 2022
5 6 8 12 14
Maple Leaf Foods Commits $12.5M to Reduce Food Insecurity in Canada Due to Increased Consumption, the Meat Processing Equipment Market Is Estimated to Pass $13B By 2026 13 Trends Reshaping the Way Food is Produced in North America
TrustBIX Inc. Announces Agreement with JBS Food Canada
FCC: Profitability Challenges Abound for Livestock Operations and Suppliers
16 18 20 22
Driving Economic Growth by Advancing Canada's Global Reputation for Top-quality Beef CoBank: Rising Retail Prices Will Increasingly Test Consumers’ Appetite for Meat
Beef Market to Increase in Worth to $604.34B USD by 2029
Canada’s Next Policy Framework - Economic Sustainability, Competitiveness and Productivity Must be a Priority
https://www.reiser.com 4
MEATBUSINESSPRO May 2022
meatbusinesspro.com
THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
May 2022 Volume 26 Number 5 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Leigh Anderson, Virginia Labbie, Scott Taylor, Cam Patterson, Jack Roberts CREATIVE DIRECTOR Patrick Cairns
Meat Business Pro is published 12 times a year by We Communications West Inc.
COMMUNICATIONS WEST INC.
We Communications West Inc. 106-530 Kenaston Boulevard Winnipeg, MB, Canada R3N 1Z4 Phone: 204.985.9502 Fax: 204.582.9800 Toll Free: 1.800.344.7055 E-mail: publishing@meatbusiness.ca Website: www.meatbusinesspro.com Meat Business Pro subscriptions are available for $28.00/year or $46.00/two years and includes the annual Buyers Guide issue. ©2020 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
MAPLE LEAF FOODS COMMITS $12.5M TO REDUCE FOOD INSECURITY IN CANADA There are over 5.8 million people in Canada that struggle with food insecurity, lacking the resources they require to access food. The impact on Black and Indigenous Peoples is especially egregious, with rates of food insecurity 2.5x higher than the national average. Maple Leaf Foods is creating social value through advancing solutions to reduce food insecurity. The Maple Leaf Centre for Action on Food Security ("the Centre"), a registered charity, works collaboratively across sectors to address this systemic issue. This includes meeting the immediate needs of people by supporting capacity building in the food security sector, investing in innovative projects with the potential for scale reach, while advocating for critical public policies to achieve systemic solutions and population level impact. Maple Leaf Foods is committing a further $10 million over the next five years to advance the work of the Centre and its partners. This will bring Maple Leaf's investment to $20 million since the Centre was launched in late 2016. Including staff time, other resource supports and product donations, the Company invests approximately 4% of pre-tax profits to support social impact work, which is core to its focus on creating shared value that benefits communities, the environment, shareholders, and other stakeholders. Michael H. McCain, CEO of Maple Leaf Foods, and Honorary Chair of the Centre, is personally contributing an additional $2.5 million over the next five years, bringing his total support of the Centre's work to over $5 million. "Food insecurity will not be solved by food charity. The Centre works with others to raise awareness of this issue, break the silence and stigma, and advocate for critical public policy reforms to achieve sustainable change," said Lynda Kuhn, Senior Vice-President and Chair of the Maple Leaf Centre for Action on Food Security. "This generous support from Maple Leaf and Mr. McCain will support the extraordinary work of many organizations that are bringing research, advocacy and community engagement to reduce hunger and advance social justice." Despite notable reductions in poverty since the federal government launched its Poverty Reduction Strategy, rates of food insecurity continue to rise, affecting 15.8% of people in Canada including one in five children. Income level is by far the strongest predictor of food security, combined with geographic, social, health and knowledge barriers. The outcome is devastating. Food insecurity is associated with a higher prevalence of chronic diseases, higher health care costs, mental health impacts, increased social isolation and impaired academic performance.
For more information, visit www.feedopportunity.com meatbusinesspro.com
May 2022 MEATBUSINESSPRO
5
DUE TO INCREASED CONSUMPTION, THE MEAT PROCESSING EQUIPMENT MARKET IS ESTIMATED TO PASS $13B BY 2026 The Business Research Company (BRC) is a market research and intelligence company with over 200+ research professionals in its offices in India, the UK and the U.S. It has specialist consultants in a wide range of industries including manufacturing, healthcare, financial services and technology. According to BRC’s recent research report on the meat processing equipment market, the increasing consumption of processed meat is expected to propel the growth of the meat processing equipment market going forward. Processed meat provides a number of advantages, including a better taste, a lower risk of meat-borne infections, a longer shelf life, and a high degree of portability. For instance, according to Standard Process Inc., a U.S. based food supplement company's report published in 2020, processed foods account for about 70% of the American diet. Additionally, according to the agricultural and processed food products export development authority, during the fiscal years 2020-21, India exported 774.11 megatonnes (MT) of processed meat to the world, valued at $1.62 million. Therefore, the increasing consumption of processed meat drives the growth of the processed meat market.
The global meat processing equipment market size is expected to grow from $9.78 billion in 2021 to $10.43 billion in 2022 at a compound annual growth rate (CAGR) of 6.71%. The growth in the market is mainly due to the companies' rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. As per TBRC’s global meat processing equipment industry growth analysis, the market is expected to reach $13.62 billion in 2026 at a CAGR of 6.89%. Major players in the meat processing equipment market are GEA Group, JBT Corporation, Marel, Illinois Tool Works, The Middleby Corporation, Bettcher Industries, Equipamientos Carnicos, Biro Manufacturing Company, Brahe, RZPO, Bizerba, Riopel Industries, Minerva Omega Group, Risco, Millard Manufacturing Corporation, Apache Stainless Equipment Corporation, Gee Gee Foods & Packaging, PSS Svidnik, Ross Industries Inc., and Metalbud Nowicki.
6
MEATBUSINESSPRO May 2022
meatbusinesspro.com
The report also gives in-depth analysis of the impact of COVID-19 on the market. The reports draw on 150,000 datasets, extensive secondary research, and exclusive insights from interviews with industry leaders. A highly experienced and expert team of analysts and modelers provides market analysis and forecasts. The reports identify top countries and segments for opportunities and strategies based on market trends and leading competitors’ approaches.
The global meat processing equipment market outlook is segmented by type into cutting equipment, blending equipment, tenderizing equipment, filling equipment, slicing equipment, grinding equipment, smoking equipment, massaging equipment, others; by meat type into beef, mutton, pork, others; by application into fresh processed meat, precooked meat, raw cooked meat, cured meat, dry meat, raw fermented sausages, others. North America was the largest region in the meat processing equipment market in 2021. Asia-Pacific is expected to be the fastest-growing region in the global meat processing equipment market during the forecast period. The regions covered in the global meat processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
For more information, visit https://www. thebusinessresearchcompany.com/report/meatprocessing-equipment-global-market-report Farm Credit Canada (FCC) is reporting that strong global demand for feed grains, COVID-19 shutdowns, supply chain disruptions, flooding and drought were just some of the major challenges livestock input suppliers and producers faced in 2021. The tight feed grain supply in western Canada combined with the smallest Canadian hay crop since 1950 has forced the livestock industry to get creative with rations, increasing demand for supplements and feed additives. Large increases in prices of lumber and metal have led to higher prices for building materials, causing producers to re-evaluate investments. Recent patterns in livestock input prices
BRC’s recent report is one of a series of new reports that provide meat processing equipment market overviews, meat processing equipment market analyze and forecast market size and growth for the whole market, meat processing equipment market segments and geographies, meat processing equipment market trends, meat processing equipment market drivers, meat processing equipment market restraints, meat processing equipment market leading competitors’ revenues, profiles and market shares in over 1,000 industry reports, covering over 2,500 market segments and 60 geographies
meatbusinesspro.com
May 2022 MEATBUSINESSPRO
7
13 TRENDS RESHAPING THE WAY FOOD IS PRODUCED IN NORTH AMERICA The Association of Equipment Manufacturers (AEM) recently released The Future of Food Production, a whitepaper detailing the drivers impacting how food is produced in North America. Guided by the AEM Futures Council and a Vision Team, comprised of AEM member company thought leaders, The Future of Food Production explores 13 trends that are changing agriculture today, impacting farmers, and reshaping how food will be produced in the coming decade.
“We brought our agriculture-based members together to take a hard look at the future and identify the trends that are changing the industry and the demands being made on today’s farmers,” said AEM President Megan Tanel. “AEM is committed to taking an active role in examining and shaping the future of agriculture so we can offer equipment solutions and insights to help farmers succeed.” From producing more with less environmental impact to advanced food traceability to help maintain consumer trust to artificial intelligence enabling insights-driven farming, the 13 trends outlined in the whitepaper define a new way of doing business that will help growers produce more with less.
8
MEATBUSINESSPRO May 2022
meatbusinesspro.com
THE 13 TRENDS OUTLINED IN THE FUTURE OF FOOD PRODUCTION: 1. Produce more with less environmental impact 2. Optimization of water use 3. Increase global demand for protein 4. Shorter food supply chain 5. Geographic shifts in production 6. Advanced food traceability helps maintain consumer trust 7. Farmers adjust in response to emission regulation 8. Efforts to decarbonize create adjacent economies
“Farmers are working hard to do the right things, not just for the next season, but for the next generation,” said Robert Crain, AEM Chair and Sr. Vice President, Customer Experience at AGCO Corporation. “This whitepaper outlines how the agriculture industry could be reshaped over the next decade and shares a vision for opportunities to overcome challenges.”
9. Connectivity gap narrows 10. Artificial intelligence enables insights-driven farming 11. Resources pour into cybersecurity 12. Farm ownership models change 13 New business models emerge
America’s farmers have always met the challenges of their time. However, a global population projected to increase 2.2 billion by 2050, requiring a 70% increase in food production, without additional land or natural resources to do so, raises the bar to even greater heights. Continued on page 10 Continued on page 10
VEMAG
REPLACEMENT PARTS
meatbusinesspro.com
https://www.dhenryandsons.com
May 2022 MEATBUSINESSPRO
9
“Equipment technology is pivotal to many of these trends coming to fruition,” said Ray O’Connor, President and Chief Executive Officer of Topcon Positioning Systems, Inc. “With predicted global population growth, shifting natural resources and increasing supply chain challenges, the evolution and adoption of technology will be key to meeting the production demands.”
“Thought leaders with a desire to shape the world of tomorrow are vitally important to the ability of our members to feed our world,” said Tanel. “Thanks to the efforts of our member company thought leaders, we have built consensus on where the future of ag is, as well as outlined the role of the equipment manufacturing industry in impacting that future.”
Meeting tomorrow’s challenges will require a new way of thinking and in some instances, a new way of doing business. AEM members are here to work with growers to help them meet the demand to feed an increasing population, the whitepaper can be viewed and downloaded from AEM’s Future of Food Production page.
“Food production and the complexion of farmland ownership in America is changing,” said Tanel. “But the one constant is the American farmer who has the ingenuity and tenacity needed to ensure a reliable food supply at home and abroad.”
Consumers who have a growing desire to know more about where their food comes from are also invited to view and download the whitepaper to help them foster a greater understanding and appreciation for the elements involved in not only the food supply chain, but also the vital role of farmers.
10
MEATBUSINESSPRO May 2022
meatbusinesspro.com
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 associations wouldn’t have previously nominated anybody because there are many farms here on PEI doing every bit as much as we are as to attain a high level of sustainability. Anyway, ABOUT THE ASSOCIATION OF EQUIPMENT we were very surprised when the PEI MANUFACTURERS (AEM): Cattleman’s Association nominated our farm.
AEM is a North America-based international CMB: And then you were attending the trade group representing off-road equipment Canadian Beef conference in Calgary manufacturers and suppliers with more than and you won. 1,000 companies and more than 200 product DF: Yeah! That was a very nice moment lines in the agriculture and constructionfor us. But I don’t like to use the related industry sectors worldwide. The word win actually. However, being equipment manufacturing industry inwas the recognized for our commitment United States 2.8want million jobs and a real supports honour. If you to know contributes $288 billion (about $890 the roughly truth, it was a pretty humbling experience. As I said to CBC whenevery they per person in the US) to the economy phoned me after the conference, I was year. just floored, really couldn’t believe it.
CMB: So now that you have been recognized, do you think that will draw more attention and garner more nominations out of Atlantic Canada going forward? DF: Absolutely. We’ve gotten a lot of good press highlighting the island cattle industry. I’m positive you’ll see more farms in our neck of the woods nominated next year. And I have to give the Canadian Cattleman’s Association recognition for choosing a farm from Prince Edward Island. We are small players in the national beef industry and I think it was a real credit to their organization to recognize us. They treated all the nominees royally and it was a real class act. It was a wonderful experience.
https://www.yesgroiup.ca meatbusiness.ca meatbusinesspro.com
September/October 2017 CANADIAN MEAT BUSINESS 17 May 2022 MEATBUSINESSPRO
11
TRUSTBIX INC. ANNOUNCES AGREEMENT WITH JBS FOOD CANADA TrustBIX Inc. has announced the signing of a master services agreement with JBS Food Canada ULC in late April 2022. The companies will work as partners to grow sustainable beef production in Canada. These services support the evolution of the JBS Angus beef brand with full chain of custody data tracking and analysis by the Company's proprietary platform, BIX, which supports the Canadian Roundtable for Sustainable Beef (CRSB) certified sustainable beef framework. Both companies believe in three pillars of sustainability and food integrity: economic viability, social responsibility, and environmental stewardship. "Food integrity is at the core of the JBS Canada Advantage, therefore working with the TrustBIX team will enhance the JBS journey to provide unmatched quality and service, along with accountability and transparency. JBS looks forward to developing a sustainable Angus beef program for our retail customers. We believe in this partnership with TrustBIX and their commitment to our sustainable beef program," said David Colwell, President of JBS Canada. "We are very proud to be selected by JBS Canada, part of the largest protein processing company in the world, to provide technological expertise utilizing our BIX platform to grow their sustainable beef program," said Hubert Lau, CEO of TrustBIX. 12
MEATBUSINESSPRO May 2022
ABOUT JBS JBS is one of the world's largest food companies, providing protein and food solutions to customers and consumers across the globe. For more information, visit www.jbsfoodgroup.com ABOUT TRUSTBIX TrustBIX provides agri-food traceability and chain of custody value solutions. The Company's goal is to create a world where we trust more, waste less and reward sustainable behaviour by addressing consumer and agrifood business demands.
For more information, visit www.trustbix.com
meatbusinesspro.com
https://www.beaconmetals.com
meatbusinesspro.com
May 2022 MEATBUSINESSPRO
13
PROFITABILITY CHALLENGES ABOUND FOR LIVESTOCK By Leigh Anderson, FCC OPERATIONS AND SUPPLIERS Farm Credit Canada (FCC) is reporting that strong global demand for feed grains, COVID-19 shutdowns, supply chain disruptions, flooding and drought were just some of the major challenges livestock input suppliers and producers faced in 2021. The tight feed grain supply in western Canada combined with the smallest Canadian hay crop since 1950 has forced the livestock industry to get creative with rations, increasing demand for supplements and feed additives. Large increases in prices of lumber and metal have led to higher prices for building materials, causing producers to re-evaluate investments. Recent patterns in livestock input prices are indicative of future trends in profitability.
HIGHER FEED COSTS LOWERING OVERALL PRODUCER MARGINS Despite record corn yields in eastern Canada, the decline of 35% in overall Canadian barley production created major challenges for feed mills to source domestic feed grains. According to AAFC, in response, corn imports from the U.S. into western Canada are expected to reach a record level of four million tonnes for the 2021/22 crop year. Tight global feedstocks and elevated market uncertainty due to the ongoing war in Ukraine have generated questions about the availability
14
MEATBUSINESSPRO May 2022
and cost of feed grains moving forward. The net impact is that ration costs have risen over 50% since mid-2020, and western hay prices have increased 80% . Figure 1: Rising feed grain prices have pushed up livestock feed ration costs
In response to the high feed costs and the challenge of lower feed quality, demand for feed supplements into rations has increased. According to Alberta farm input data, stronger demand led to a moderate average price increase for supplements of 3.5% in February 2022 (Figure 2). Supplements have allowed livestock operations to use lower quality feed, stretch feed supplies and budgets while maintaining livestock dietary requirements. Note that the YoY price increase does not fully capture the impact of dry conditions in the Prairies. Feedlot supplement prices rose 17%
meatbusinesspro.com
THE BEST DEFE A STRONG OFFE
Figure 3: Building, fencing supplies and equipment
PROMOTING THE HEALTH BENEFITS By Ronnie P. Cons
Red meat is often wrongly portrayed as being unhealthy. some in the media as unhealthy or not environmentally fr
Figure 2: Feed supplements trending higher for all livestock sectors
Vegan, fish and other non-meat diets have been proposed as healthier alternatives. The result of this onslaught of negative meat messages has influenced manyINPUT familiesSUPPLIERS to cut back on WHAT SHOULD LIVESTOCK their meat and poultry purchases. Perceptions reality but EXPECT FOR THE REMAINDER OFmay 2022 truth trumps misinformation. Parents and other consumers want what is best for their health and that of their families. Livestock input suppliers have navigated a very volatile They are also aware that a lot of false information is out there market in 2021, which resulted large in their and as such, are open to has scientific factsinthat canshifts correct producers’ costs and investment opportunities. Large misconceptions.
2022 crops in North America would bring some relief to This provides an opportunity for retail meat departments feed grain prices and help to improve overall margins in to implement an instore ‘Healthy Meat Facts’ nutritional the livestock sector. Nonetheless, feed grain prices campaign to set the record straight and convince their are customersto that meat and poultry are actually good for to one’s expected remain historically high and margins be healthlimiting and that opportunities they should increase rather than decrease tight, for livestock input suppliers their purchases of it. The campaign outlined below can have to pass on additional costs. a direct impact on sales:
SUPPLY CHAIN CHALLENGES HAVE CREATED SIGNIFICANT PRICE VOLATILITY FOR BUILDING SUPPLIES AND EQUIPMENT Building material prices have been another challenge for the livestock sector. Over the past year, lumber and steel markets have experienced significant shifts, creating wild swings in prices for fencing and equipment (Figure 3). Lumber prices doubled in the summer of 2021 and were 23% higher YoY in February 2022. Barbed wire is up 30%, fence posts and rebar are up 10%, while concrete is down 1%. Rising lumber and steel costs have impacted construction costs of new barns and farm buildings.
Start by displaying instoreover posters theoutlook nutritional In addition, the clouds the promoting profitability are value of meat. They should be innovative, eye catching and not likely to lead to a significant expansion of livestock be designed to specifically contradict any meat myths. The numbers Canada. Market opportunities forresearch input commentsinshould all be literature based quoting suppliers are likely to trendeffect. sideways or decrease due papers or MDs for maximum Various posters should be lower made -inventories each with a of brief but powerful message covering to cattle and hogs. Conversely, one theme. dairy and poultry market opportunities are expected to expand demand for foodservices rebounds. Posters canas convey the following healthy meat fact The messages: spread of Avian flu adds uncertainty to the outlook for poultry operations 2022.on Meat! 1. Let’s IRON out theinTruth “You would need to eat massive amount of spinach to For more information,avisit https://www.fcc-fac.ca equal (the iron content) in a steak,” says Christopher Golden, an ecologist and epidemiologist at Harvard University in Cambridge, Massachusetts. (As quoted by nature.com in the article ‘Brain food- clever eating’.) For a woman to receive her recommended daily intake of 18 mg of iron, she would need just 300 grams of cooked bovine
Iron fo found absorp
2. Eat Being linked Dr. Ch Califor
Zinc is preser
3. Boo Due to antibo chronic
4. Pow The pr
Muscle buildin The pr growth
5. Mea Meat c body c isoleuc threon protein
6. Eat Meat c produc functio
Say ‘h acid, v
Round balers are only up 3% as baler demand dropped due to last year’s drought. However, prices on barbed wire and fence posts had a huge run-up through 2021 due to high lumber and steel prices. Investment opportunities are likely to soften through the next 12 months. Higher interest rates are making infrastructure investments more expensive, while supply chain challenges continue to add significant costs to machinery and equipment. Livestock producers may delay investments due to tighter margins over the past 3 years.
The lin only ap meat h Facts’ and po educat
Ronnie P meat an
https://www.mmequip.com
22 CANADIAN MEAT BUSINESS September/October 2017 meatbusinesspro.com
liver, 6 spinac
May 2022 MEATBUSINESSPRO
15
DRIVING ECONOMIC GROWTH BY ADVANCING CANADA'S GLOBAL REPUTATION FOR TOP-QUALITY BEEF Canada's livestock producers and processors have built a strong reputation for delivering high-quality, safe and delicious beef. The Minister of Agriculture and AgriFood, the Honourable Marie-Claude Bibeau, recently announced an investment of up to $3.6 million to ensure the beef industry has the necessary resources to seize new export opportunities to remain competitive and continue to be a sustainable driver of economic growth.
Under the AgriMarketing Program, this funding will be used to support Canada Beef's efforts to boost beef and veal exports globally through initiatives that aim to increase trust in Canada's beef sector. Project activities will help to bolster Canada's global beef brand and build stronger relationships with global trading partners. This will help producers become more competitive and grow beef sales in important international markets, while supporting the continued growth and success of the Canadian beef industry, which contributes billions to Canada's GDP. In addition, this project will support training and e-learning activities at the Canadian Beef Centre of Excellence (CBCE), a state-of-the-art training facility. These activities will help industry increase knowledge around the advantages of Canadian beef, enable it to promote the excellence of Canadian beef and help to increase public trust in beef products.
Michael Young, President, Canada Beef stated, "The government-industry development funding that Canada's beef producers are able to leverage with their own national check-off investment is essential for positioning the industry for growth and success in international markets. The ability to partner with the Government of Canada to fund and deliver important programs is appreciated especially as the pandemic and world events contribute to an ever-evolving marketplace."
16
MEATBUSINESSPRO May 2022
meatbusinesspro.com
QUICK FACTS • Beef production contributes approximately $21.8 billion to Canada's GDP (2018-2020 Statistics Canada/ Canfax averages). • In 2021, Canada exported 508 million kilograms of beef to international markets, valued at $4.47 billion.
"Canadian cattle producers deliver high-quality, internationally recognized products. Building on this reputation, our government's investment will help the industry capture opportunities for growth and ensure that Canada's beef sector remains a driver of our economy”, said Marie-Claude Bibeau, Minister of Agriculture and Agri-Food. Despite many challenges, Canada's beef industry has shown great resiliency and continues to look for opportunities to grow in new and existing global markets.
• Canada Beef provides market development and promotion services to the Canadian beef and veal industry. It is a division of the Canadian Beef Cattle Research, Market Development and Promotion Agency. • The funding announced today builds on a previous AgriMarketing investment for Canada Beef of up to $4.9 million to build consumer loyalty to the Canadian brand, address market access issues and strengthen trading relationships. • In May 2021, Canada was officially recognized by the World Organisation for Animal Health (OIE) World Assembly of Delegates as a country with negligible risk for bovine spongiform encephalopathy (BSE), which provides opportunities for Canada in new and existing markets. • The AgriMarketing Program, under the Canadian Agricultural Partnership, aims to increase and diversify exports to international markets and seize domestic market opportunities through industry-led promotional activities that differentiate Canadian products and producers, and leverage Canada's reputation for highquality and safe food. • The Canadian Agricultural Partnership is a fiveyear, $3 billion investment by federal-provincial and territorial governments, which will strengthen the agriculture, agri-food and agri-based products sector, ensuring continued innovation, growth and prosperity.
meatbusinesspro.com
May 2022 MEATBUSINESSPRO
17
COBANK: RISING RETAIL PRICES WILL INCREASINGLY TEST CONSUMERS’ APPETITE FOR MEAT Full effects of producer price inflation will become apparent in grocery meat cases. U.S. consumer demand for retail meat remains exceptionally strong despite higher prices stemming from increased production costs and supply chain limitations. However, once the full effects of producer price inflation finally hit retail meat cases, consumer demand for meat will be tested again, according to a new report from CoBank’s Knowledge Exchange. “Retail meat prices will remain elevated throughout 2022,” said Brian Earnest, lead animal protein economist with CoBank. “The sharply higher costs for feed, energy and labor have yet to fully impact wholesale and retail meat prices, but that will soon change. And as consumers notice their dollar is not going as far as it used to, they may trade down at the meat case, with chicken being the primary beneficiary.”
18
MEATBUSINESSPRO May 2022
With combined cutout values of beef, pork and chicken climbing 22% year-over-year for the first quarter of 2022, consumers are all but certain to see higher prices in the meat case.
Beef consumption has not yet declined in the face of higher prices. But as overall inflation takes a bite of consumers’ purchasing power, we may finally see a significant change in their willingness to pay for red meat, added Earnest. If that turns out to be the case, the U.S. broiler industry may yet again be well positioned for modest growth and strong margins.
meatbusinesspro.com
Increased volatility in spot markets and supply instability handcuffed retail marketing of proteins during the 2020 grilling season. Featuring activity rebounded substantially in 2021 as grocers sought to hold onto the sales they gained during the pandemic. For retailers in 2022, a flight to safety from higher meat prices may be to feature value items like ground beef, hot dogs and sausage items.
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA
As grilling season enters full swing, it is likely that retail Global public health organization showcases services for Canada’s and fast-changing meat departments’ focusgrowing will shift to profit margin over food industry volume sales this year, meaning we will see increased creativity in International the meat case. Rather for than vying for NSF International in Canada recently launched a new accredited Association Continuing consumer dollars through aggressive price points, “no website - www.nsfcanada.ca - to give Canada’s growing Education and Training (IACET) site. Topics include HACCP, and complex food and beverage industry easy access food safety andwill quality, GFSI benchmarked standards, price” features be an attractive solution. to theconsumer global public health organization’s expertise regulations (including FSMA), food science, food packaging, Shifting purchasing patterns and marketand services in stemming Canada. The website food microbiology and ISO standards. Training modalities uncertainties from the combines pandemicinformation have been on the depth, experience and capabilities of the NSF include eLearning, on-site, customized and open enrolment. the primary drivers of higher and more volatile meat International Canadian office with access to NSF Additionally, the website includes information about prices. But supplyglobal challenges have also played role. International’s services dedicated to foodasafety management system registrations for the food, automotive, Theand temporary quality. closure of beef and pork plants in 2020 environmental, information security, medical devices, led to backups in fed cattle supplies that still linger Evolving regulations across countries and increasing aerospace and chemical industries, as well as for Ontario today. complexities associated with a globalized food supply drinking water programs. network present challenges for NSF International clients in
TheCanada nation’sand beef cattletheinventory remains in decline, around world. The new Canadian website offers expertise and services to help companies due in part to the ongoing drought conditions innavigate challenges, auditing, the these Western U.S. andincluding modestcertification feeder calfand prices. The consulting, technical services, training and education, combined cow and replacement heifer inventory has food and label compliance, packaging, and product and dropped by 12% since 2017. Likewise, the nation’s sow process development. herd is contracting and is down nearly 6% over the past NSF International’s Canadian website provides information three years, primarily due to losses sustained in 2018on the following services: 19. USDA is forecasting a 2% decline in U.S. beef and porkCertification production&inauditing: 2022. Third-party food safety audits
Visit 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.
and certifications, which are integral components of supplier selection and regulatory compliance. Accurate Price volatility across the toward animalsuccessful protein sector has audits are the first step verification become a daily headache forsystem, procurement teams to of a company’s food safety providing improved manage. prices 2022 in post-holiday brand While protection andstarted customer confidence. Certifications and audits are available for were animalstill andelevated produce in the doldrums, wholesale values agriculture industry, GFSI certification and management compared with pre-pandemic levels. Volatility in system registration.
wholesale markets remains an obstacle for promotional Consulting: A full-service team approach providing planning.
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. Training and education: Training for the global food and beverage industry across the supply chain as an meatbusiness.ca
meatbusinesspro.com
https://www.yesgroup.ca
September/October 2017 CANADIAN MEAT BUSINESS 23 May 2022 MEATBUSINESSPRO
19
BEEF MARKET TO INCREASE IN WORTH TO $604.34B USD BY 2029 According to recent report by Fortune Business Insights titled, “Beef Market, 2022-2029”, the global beef market size reached $395.22B USD in 2021. The market value is anticipated to increase from $414.98B USD in 2022 to $604.34B USD by 2029 at a CAGR of 5.52% during the forecast duration. Key industry players covered in this report include Beef Market are JBS SA (Brazil), National Beef Packing Company, LLC (U.S.), American Foods Group, LLC. (U.S.), Agri Beef Co. (U.S.), Perdue Farms Inc. (U.S.), Tyson Foods, Inc. (U.S.), Strauss Brands LLC (U.S.), Cargill, Incorporated (U.S.), Central Valley Meat (U.S.), Danish Crown A/S (Denmark).
COVID 19 IMPACT The COVID-19 crisis had a significant impact on the production and supply of raw materials used in the meat industry. The availability of animal feed materials has significantly decreased due to disruptions in logistics. This increased the cost of raising feeder cattle for farm owners and had an impact on-farm production. Various meat processing plants were either closed or operating at reduced capacity as a result of worker infections. As a result, animal farm owners had few options for selling their animals in various meat processing plants. They were forced to euthanize the animals, which impacted their cattle market revenue generation.
SEGMENTATION On the basis of cut type, the beef market share is divided into ground, roasts, steaks, and others. On the basis of distribution channels, the market is segmented into retail sales, HoReCa, and butcher shops.
20
MEATBUSINESSPRO May 2022
Geographically, the market is classified into Asia Pacific, North America, Europe, and the Middle East & Africa.
REPORT COVERAGE The report analyzes the market in-depth, focusing on key aspects such as beef cuts, leading product distribution channels, and leading companies. Apart from that, the report provides insights into market trends and emphasizes key industry developments.
DRIVERS & RESTRAINTS One of the major factors driving consumer demand for nutritious, protein-rich meat products is an increase in disposable income. Consumption of such products is increasing in emerging economies such as China and Thailand, particularly among the middle class. Consumers began to include meat products, including beef, in their diets as their living standards improved and they became more aware of the importance of animal protein.
COMPETITIVE LANDSCAPE Companies are also attempting to integrate their supply chains in order to gain greater control over the manufacturing process. They also use cutting-edge technology, such as blockchain, to track cattle disease and ensure products are manufactured safely. With the increasing demand for innovative meat products, manufacturers are focusing on developing novel solutions to meet the tastes and preferences of various consumer segments across geographies.
Browse detailed summary of report at https://www.fortunebusinessinsights.com/beefmarket-106640
meatbusinesspro.com
meatbusinesspro.com
https://www.cfib.ca May 2022 MEATBUSINESSPRO
21
CANADA’S NEXT POLICY FRAMEWORK ECONOMIC SUSTAINABILITY, COMPETITIVENESS AND PRODUCTIVITY MUST BE A PRIORITY For more than 51 years, the Canadian Federation of Independent Business (CFIB) has been an advocate and defender of small- and medium-sized businesses. As of today, we represent 95,000 businesses across Canada, including 6,000 farms and agri-businesses. One of the secrets to success is that our policies are driven by our members. Our extensive research and survey-based feedback is an invaluable tool to share with policy makers. As a policy analyst representing our farm members, one of the privileges I have is to review the survey data from our farm members. Whether it’s on the topic of the environment, new regulations, or their business outlook for the year ahead, the most interesting and revealing stories come from the hundreds of member comments we receive directly from farmers through our survey process. And boy- do they have a lot to say! If I could sum it up into one phrase as a message to all levels of government, it is this: “Is anyone listening?”
Did you know that almost 9-in-10 farmers have taken steps to protect the environment and reduce emissions? In fact, a strong majority of farmers have indicated they have done so because of their own personal views. When asked what they have done to protect the environment, the feedback we received from our members was extensive. Farmers have been direct seeding for decades, preserving grasslands, protecting water sources, reducing electricity usage, focusing on nutrient management, and using or producing more environmentally friendly products. Many intend to invest in greener and more energy efficient technology when options become commercially available. I could go on and on- the list is endless. Despite this leadership that farmers have shown, they continue to feel the weight of increasing government regulation. Whether it’s fertilizer emissions reduction targets, the looming Clean Fuel Standard, or an escalating federal carbon tax, farmers are asking- is anyone listening?
22
MEATBUSINESSPRO May 2022
meatbusinesspro.com
CFIB couldn’t agree more. Given the times we are in, now is not the time to be adding more costs and regulations on the agriculture sector. General farm policy and the Next Policy Framework should focus on growth and making the sector more competitive and productive.
The focus on climate change and sustainability continues to dominate farm policy especially at the federal government level and is one of the key focuses in the development of the Next Policy Framework. While sustainability and protecting the environment are worthy goals, governments need to recognize the leadership and important role farmers already play.
Are governments listening? In a recent consultation on the Next Policy Framework, the message from stakeholders was loud and clear. Farmers are doing their part on environmental sustainability. Now, federal, provincial, and territorial governments need to do their part to ensure the policies they agree on this summer supports a viable, profitable, and competitive industry.
There must be a balance. The Next Policy Framework needs to also have a focus on competitiveness, productivity, and food security. A renewed focus on economic sustainability must be at the heart of policy and decision making. The following member comment from a vegetable farmer in Ontario is quite telling as it relates to sustainability:
“Fuel costs, staffing, soil, all sorts of parts and equipment costs have all gone up drastically for us in regards to growing and harvesting vegetables. It’s hard not to want to quit growing food. The lack of profit margins and increased risk is making it more and more unsustainable.” Not surprisingly, recent CFIB survey data shows that 94 per cent of farmers say rising input costs are significantly or moderately impacting their business. Skyrocketing costs for fuel, fertilizer and other farm inputs are making for one of the most expensive crops to be seeded in a long while. In addition, livestock producers are facing high feed costs. On April 14th, CFIB was pleased to welcome Deputy Prime Minister and Minister of Finance Chrystia Freeland on a live member webinar to discuss the 2022 federal budget and small business. Minister Freeland discussed the ongoing crisis in Ukraine, the potential food shortages that may result and made several positive comments about the importance of farmers. She concluded, “Canadian farmers are needed more than ever…this year more than ever it’s about feeding the world”. meatbusinesspro.com
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.
May 2022 MEATBUSINESSPRO
23
2 CANADIAN MEAT BUSINESS July/August 2017
24
MEATBUSINESSPRO May 2022
https://www.yesgroup.ca
meatbusiness.ca
meatbusinesspro.com meatbusinesspro.com