THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
December 2023
NEW ECONOMIC INCENTIVES AIMED AT REDUCING METHANE EMISSIONS FROM BEEF CATTLE FCC: Canadian Agriculture’s $30 Billion Opportunity Pork Farmers in Quebec Reeling from ‘Perfect Storm’ Crisis COP28: Canadian Ranchers to Argue Meat Should Stay on the Menu Tackling Climate Change and Alleviating Hunger:States Recycle and Donate Food Headed to Landfills Wrapping up Canadian Agriculture in 2023 meatbusinesspro.com
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DECEMBER 2023
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Rabobank: Global Beef Industry 'A Two-Part Story'
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COP28: Canadian Ranchers to Argue Meat Should Stayon the Menu
New Economic Incentives Aimed at Reducing Methane Emissions from Beef Cattle
Tackling Climate Change and Alleviating Hunger: States Recycle and Donate Food Headed to Landfills
FCC: Canadian Agriculture’s $30 Billion Opportunity
Wrapping up Canadian Agriculture in 2023
Pork Farmers in Quebec Reeling from ‘Perfect Storm’ Crisis
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THE BEEF, PORK & POULTRY INDUSTRY DIGITAL MAGAZINE
December 2023 Volume 24 Number 12 PUBLISHER Ray Blumenfeld ray@meatbusiness.ca MANAGING EDITOR Scott Taylor publishing@meatbusiness.ca DIGITAL MEDIA EDITOR Cam Patterson cam@meatbusiness.ca CONTRIBUTING WRITERS Jack Roberts, Isaac Kwarteng, Morgan Lowrie, Nathanial Dove, David R. Martin, Michael Casey, SeoRhin Yoo CREATIVE DIRECTOR Patrick Cairns
Meat Business Pro is published 12 times a year by We Communications West Inc.
RABOBANK: GLOBAL BEEF INDUSTRY 'A TWO-PART STORY' Rabobank, a worldwide research leader food and agribusiness sectors, recently published its assessment of their Global Beef Quarterly report, which covers the fourth quarter of this year. The global beef industry continues to be a 'two-part story', Rabobank has said, with ongoing strong consumer demand in the US matched by reduced cattle and beef supplies, as well as high inventory levels and weak demand in Asia. Southern Hemisphere meat markets continue to see an increase in production volumes, it added, with increases in Brazil and Asia, however this has not been enough to offset the declines in Europe and the US. Beef production in the markets that Rabobank monitors is expected to decline 1% year-on-year in full year 2023, with the group adding that it expects 2024 to play out 'in a similar fashion'. Cattle Prices Rabobank has noted a sustained high level of North American cattle prices, contrasting with softer prices in Southern Hemisphere countries.
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Australian cattle prices have significantly declined, showing a 28% drop since June. Meanwhile, New Zealand and Brazil also experienced decreases, albeit to a lesser extent. In the United States, cattle prices remained stable, while Canadian prices witnessed a 3% increase from June to October. Middle East Conflict According to Rabobank, the ongoing conflict in the Middle East is not expected to significantly affect beef trade. The combined import volumes of Israel and the Palestinian territories represent only about 1% of global beef imports. Even if the conflict were to extend across the broader Middle East and North Africa region, the bank suggests that the impact on global beef trade would remain relatively minimal. JBS Investment Earlier this month, JBS, the Brazilian meatpacking giant, revealed plans to reopen its beef unit in Diamantino, Mato Grosso state. The company also announced a significant investment, with an initial injection of $83 million CDN, part of a total investment of $222 million CDN, aimed at transforming the facility into the largest beef plant in Latin America. Upon the completion of restoration and expansion works scheduled for January 2024, JBS expects to create 1,600 new jobs in the region. For more information, visit https://research.rabobank.com/far/en/home/index.html
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NEW ECONOMIC INCENTIVES AIMED AT REDUCING METHANE EMISSIONS FROM BEEF CATTLE Against the backdrop of Food and Agriculture Day at COP28, the global community is witnessing a pivotal moment in the collective effort to address environmental challenges within the agricultural sector. As world leaders convene to deliberate on sustainable solutions, there is a growing consensus on the critical role agriculture plays in reducing emissions and fostering a more sustainable planet.
Environment and Climate Change Canada published a draft fourth protocol under Canada’s Greenhouse Gas Offset Credit System. This new draft protocol, Reducing Enteric Methane Emissions from Beef Cattle (REME protocol), will incentivize farmers to implement changes that would reduce enteric methane emissions from their beef cattle operations with an opportunity to generate offset credits that they can sell.
“Canada’s farmers and ranchers care deeply about the environment and want to be part of the solution to climate change. This initiative would ensure our ranchers benefit from the methane emissions reductions they achieve from their herds - that’s a win for the environment and for farmers. By working together with our farmers and ranchers, we can drive economic growth, keep the sector competitive, and put more money back into the pockets of our farmers, all while fighting climate change,” stated Lawrence MacAulay, Minister of Agriculture and Agri-Food
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To ensure the offset protocol will be a practical solution for farmers to earn revenue for emissions reductions, the Government developed the REME protocol with input from technical experts in the agricultural sector. Additionally, the Government is working closely with provinces and territories that have shown leadership in agricultural environmental action to incorporate best practices and build on their experience. For example, the draft REME protocol was informed by Alberta’s offset protocol on reducing greenhouse gas emissions from fed cattle.
Methane is generated during the natural digestive process of cows and is released into the air when cows burp. This is known as an enteric methane emission. The REME protocol will encourage beef cattle farms to reduce enteric methane emissions by improving animal diets, management, and other strategies that support more efficient animal growth. Each credit represents one tonne of emission reductions. Credits can be sold to facilities that will use them to meet emissions reduction obligations, or to other businesses to meet their lowcarbon economy commitments. This means fewer methane emissions, and more financial opportunities for Canadian farmers.
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QUICK FACTS • In 2021, agriculture was responsible for 31 percent of Canada’s total methane emissions, the majority coming from enteric fermentation produced by beef and dairy cattle. Methane is generated during the natural digestive process of cows and is released into the air when cows burp. This is known as an enteric methane emission.
The REME protocol is just one of a number of measures
the Canadian government is taking to help decarbonize the agricultural sector. Agriculture and Agri-Food Canada recently announced a $12 million investment in the Agricultural Methane Reduction Challenge. This Challenge awards funding to innovators advancing lowcost and scalable practices, processes, and technologies designed to reduce enteric methane emissions produced by cattle. The Government is seeking input from stakeholders on the draft REME protocol. Interested parties are invited to submit comments via email at: creditscompensatoires-offsets@ec.gc.ca by February 6, 2024. The final protocol is expected to be published in the summer of 2024, when farmers can begin registering their projects in Canada’s Greenhouse Gas (GHG) Offset Credit System. For more information on Canada’s GHG Offset Credit System, eligible activities, and how to submit an application to register an offset project, please visit Canada’s Greenhouse Gas Offset Credit System.
• Canada’s Greenhouse Gas Offset Credit System provides an incentive for farmers, municipalities, Indigenous communities, foresters, and other project developers in sectors such as agriculture, waste, forestry, and advanced technology to undertake domestic projects that reduce the greenhouse gases that cause climate change.
• The REME protocol builds on the existing suite of protocols published since the launch of Canada’s Greenhouse Gas Offset Credit System. The Offset Credit System is among several measures that Canada is taking to reduce domestic greenhouse gas emissions by 40 to 45 percent below 2005 levels by 2030 and delivers on a commitment in Canada’s 2030 Emissions Reduction Plan. 8
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• On December 4, 2023, Environment and Climate Change Canada published strengthened oil and gas methane regulations to cut emissions from this potent greenhouse gas. From 2027 to 2040, the draft methane regulations will reduce cumulative emissions by 217 megatonnes (carbon dioxide equivalent). They will also have positive social and economic benefits of $12.4 billion from avoided global damages.
Farm Credit Canada’s (FCC) economics team says rekindling productivity growth in Canadian agriculture is a $30 billion opportunity over 10 years according to a new report.
• The Agricultural Methane Reduction Challenge builds on the Government of Canada’s actions to reduce methane emissions through Canada’s Methane Strategy, in support of the Global Methane Pledge, the 2030 Emissions Reduction Plan, and the Sustainable Agriculture Strategy.
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“If the agriculture industry can return productivity growth to where it was two decades ago, FCC estimates it would add as much as $30 billion in net cash income over ten years,” says J.P. Gervais, FCC’s chief economist. “Developing innovative solutions, adopting new technology and leveraging data and insights can boost productivity growth and pay off in a big way for Canadian farms.”
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FCC: CANADIAN AGRICULTURE’S $30 BILLION OPPORTUNITY By Isaac Kwarteng, FCC Senior Economist Farm Credit Canada’s (FCC) economics team says rekindling productivity growth in Canadian agriculture is a $30 billion opportunity over 10 years according to a new report. “If the agriculture industry can return productivity growth to where it was two decades ago, FCC estimates it would add as much as $30 billion in net cash income over ten years,” says J.P. Gervais, FCC’s chief economist. “Developing innovative solutions, adopting new technology and leveraging data and insights can boost productivity growth and pay off in a big way for Canadian farms.” Canada’s agricultural productivity growth has slowed since 2011 which is consistent with global agricultural productivity trends. Agricultural productivity evaluates how inputs such as labour, capital, land, fertilizer and feed are efficiently transformed into outputs such as crops, livestock and aquaculture products. Productivity growth happens when producers increase their output using the same or smaller quantities of inputs.
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Total factor productivity measures the combined effects of new technologies, efficiency improvements and economies of scale. It is a key metric for assessing trends in agricultural productivity. “Between 1971 and 2000 there was steady productivity growth on Canadian farms before hitting a plateau,” explains Gervais. “We are now seeing declining growth with a further decline projected for the next ten years. While that is the current projection, the entire agrifood supply chain can rally around the innovation spirit of farm input manufacturers and suppliers, farm operators, researchers and food processors to restore growth in agricultural productivity towards its peak.” Average annual total factor productivity growth in Canadian agriculture by decade
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“I have confidence in the agriculture industry’s ability to enhance productivity growth,” said Hendricks. “FCC is dedicated to supporting our customers as they meet these new demands and pursue productivity improvements through a variety of operational shifts designed to reduce input costs and maximize efficiencies.”
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW FCC is Canada’s leading agriculture and food lender, dedicated toIN the industry that feeds the world. FCC WEBSITE FOR SERVICES CANADA
employees are committed to the long-standing success Global public health organization showcases services for Canada’s growing fast-changing of those who produce and process and Canadian food by providing flexible financing, AgExpert business food industry management software, information and knowledge. NSF International in Canada recently launched a new accredited International Association for Continuing FCC provides a complement ofsite. expertise services website - www.nsfcanada.ca - to give Canada’s growing Education and Training (IACET) Topics and include HACCP, designed to support the complex and evolving needs and complex food and beverage industry easy access food safety and quality, GFSI benchmarked standards, As atoglobal leader in growing, processing expertise and exporting ofregulations food businesses. AsFSMA), a financial Crown corporation, the global public health organization’s and (including food science, food packaging, services in Canada. The website combines information food microbiology and ISO standards. Training modalities safe and reliable food, Canadian producers have a long FCC is a stable partner that reinvests profits back into on the depth, experience and capabilities of the NSF include eLearning, on-site, customized and open enrolment. history of adopting new technology and production the industry and communities it serves. For more International Canadian office with access to NSF Additionally, visit the website practices that feed the world and protect the information, fcc.ca. includes information about International’s global services dedicated to food safety management system registrations for the food, automotive, environment. and quality. Evolving regulations across countries and increasing “The world’s population is expected to reach nearly complexities associated with a globalized food supply 10 billion people bychallenges 2050. TheforCanadian agriculture network present NSF International clients in industry is well positioned to beThe a leader in the website Canada and around the world. new Canadian technology and innovation thattowill that demand offers expertise and services helpmeet companies navigate these challenges, including certification and auditing, for food,” says Justine Hendricks, FCC president and consulting, technical services, training and education, CEO. “At FCC we offer a full complement of financing food and compliance, packaging, and product services and label resources to support the industry in and process development.
environmental, information security, medical devices, aerospace and chemical industries, as well as for Ontario drinking water programs.
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.
sustainably increasing its productivity and maximizing International’s Canadian the NSF resulting economic gains.” website provides information on the following services:
& auditing: Third-party safety audits The Certification $30 billion opportunity that existsfood for the industry and certifications, whichgrowth are integral of by restoring productivity to itscomponents historical peak supplier selection and regulatory compliance. Accurate is calculated using a framework that takes into account audits are the first step toward successful verification the of relationship between total factorproviding productivity, farm a company’s food safety system, improved product prices and farm input prices. brand protection and customer confidence. Certifications and audits are 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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PORK FARMERS IN QUEBEC REELING FROM ‘PERFECT STORM’ CRISIS By Morgan Lowrie, Canadian Press Over the last two years, François Nadeau has chosen to do something rare among his fellow Quebec pork farmers: invest in the future Despite economic conditions that industry leaders have called a crisis, Nadeau and his wife and co-owner of their business, Julie Bogemans, went ahead with a new building to house some of their 1,200 sows. It features high-tech feeding and cooling systems and bigger, open pens to replace many of the crates and cages that used to keep the animals confined. In the current economic climate, leaving pork production altogether seems to be the more popular option. Recently, more than 20 per cent of producers in the province applied for a program to compensate farmers who severely reduce their herds or quit — a number that has shocked even industry leaders who are well aware of how tough things have become.
In an interview at his farm in St-Sebastien, a rural community about 50 kilometres southeast of Montreal, Nadeau explained that the changes were made in part to ensure the farm complies with new federal animal welfare rules that come into force in 2029. “Despite everything that’s happening, we’re among those who still believe in (pig farming), despite the difficulties,” he said.
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“It worries us enormously,” said Louis-Philippe Roy, president of a group representing pork producers in Quebec, who account for about 31 per cent of Canadian production. Roy says the crisis currently shaking the industry is created by a “perfect storm” of factors, including COVID-19-induced slowdowns, labour shortages at pork plants, the closure of one of the province’s largest slaughterhouses, a glut of pork globally, high interest rates and skyrocketing grain prices that have driven the
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cost of feed up by 60 per cent.
While pork production, like all agriculture, is cyclic, he said it’s rare for a down period to last so long. He is committed to continuing his operation in the Estrie region, but he is delaying renovation or expansion programs. “In terms of projects we wanted to do, everything is on ice right now,” he said. “And it’s like that for all of us: either it’s on ice or producers want to reduce.”
As a result, he said the Quebec farmers, who bargain collectively with the companies that slaughter and process hogs, have had to accept prices that see them lose between $15 to $20 per animal they produce. Ken McEwan, a retired University of Guelph professor and agricultural economist, says Canada’s pork industry has always been sensitive to price fluctuations, in part because it is heavily dependent on exports — especially to the fickle Chinese market, which temporarily banned Canadian pork imports in 2019.
Paul Beauchamp, a vice president at Olymel, says Quebec was hit hard and early during the COVID-19 pandemic. The combination of temporary closures, absenteeism and distancing rules meant the packing plants could no longer keep up with volume. As a result, the company had to stop producing high-value products and focus on simple cuts that didn’t require deboning — contributing to a loss of $400 million over two years, he says.
While Canadian producers are known for their highquality product, he said in a recent interview, “it’s not just about what’s going on in Quebec or Eastern Canada. It’s about global factors.” The fallout has been especially painful in Quebec, where leading processor Olymel has shuttered several facilities and is reducing its slaughter capacity by some 1.6 million hogs a year. Sébastien Pagé, who owns a maternity farm east of Montreal that produces 125,000 to 130,000 piglets per year, says the low price of pork is forcing producers to dip into a stabilization program funded by both farmers and the government.
He says that Olymel, like everyone else in the industry, is trying to emerge from the crisis. For Olymel, that meant reducing slaughter capacity and focusing on high-value products that fetch a premium price in markets such as Japan, Korea, and Australia. He said there are also efforts to grow the market within Canada to make it less reliant on imports. While Nadeau says many of the factors in the crisis are beyond farmers’ control, he’s trying his best to reduce the cost of production despite the rising price of insurance, labour and feed. In his new building, the sows wander from the open pens into narrower feeding bays, where a machine reads a chip in their ears and determines down to the gram exactly how much feed each animal should eat.
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Nadeau, Pagé and Roy all hope the industry is close to turning a corner. But they say the near future, at least, will involve producing fewer animals more efficiently and with high standards, which will require the remaining producers to invest like Nadeau has. The industry decided earlier this year to reduce the number of producers by nine per cent. Two per cent had already left of their own accord before the announcement this year of the voluntary withdrawal program, while the other seven per cent will be chosen from those who applied and will receive some compensation.
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
Roy of the pork producers federation wonders what will happen to the rest of the 22 per cent of producers who applied for the program but won’t be chosen.
“Will they continue their production? Will they reinvest? Those are questions I unfortunately can’t Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility Elsewhere, in a maternity room, a caged sow nurses answer right now,” he said. By Amy Reid, Peace Arch News a row of newborn piglets, after delivering 20 that so as to not emit odours. And while there is an operational federally licensed beef processing facility in the works same morning. AComputers monitor each of theissows 6,000-square-foot abattoir on the property now, it’s can in Surrey, BC. individually, alerting Nadeau if they haven’t eaten or only process a limited number of cattle. “There’s a new building coming forward, a new abattoir, I walked their normal amount. Chris Les is general manager of Meadow Valley Meats, 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 He’s also integrated a new ventilation system designed the ability to not have to ship an animal to Alberta to have to mitigate the itprovince’s hotter summers by blowing processed. The applications have gone through the air from fans through a wall of cold water,Advisory in order to Agricultural and Food Sustainability Committee.” keep the sows comfortable so they well and deliver The facility is proposed on aeat 25-acre property within the healthy piglets.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.
He says the changes areto about welfare butmake alsoit larger than According a city report, that would any other processing B.C.. But it would stillto be efficiency. “It’s becoming morefacility and in more important by industry standards, compared to the largest meat be able to standsmall out, to be all the time trying to look for processing plants in Alberta that process 3,000 heads of small margins,”cattle he said. per day.
The proposed facility would be fully enclosed and designed
the company behind the project. Meadow Valley Meats is seeking a Canadian Food Inspection Agency license for the proposed abattoir, to become a federally registered meat establishment and expand the operation. This would allow the meat products to be transported beyond B.C.’s boundaries. “Our focus is on trying to bring a more efficient, sustainable local product to the market, realizing we can do that now in a very limited sense,” said Les. “I caution people when talking to them and they say, ‘What a big plant, that’s going to go allow you to go mainstream.’ Well, yes, if you look in the context of B.C., but this is still a very niche plant and we’ll serve a niche industry for producers and for the market. It’s certainly not going to be a monstrosity of a plant but it’ll be a big upgrade from the site currently.” Continued on page 32
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COP28: CANADIAN RANCHERS TO ARGUE MEAT SHOULD STAY ON THE MENU By Nathanial Dove, Global News As world leaders met recently in Dubai at COP28 to discuss mitigating climate change and avoiding a disastrous rise in global temperatures, a group representing Canadian beef producers argued to keep meat on the people’s plates.
The UN had previously stated the rearing of livestock used very large amounts of land and created large amounts of greenhouse gas emissions (GHGs), which contribute to climate change.
“Our goal is to make sure that the conversation… [is] that meat is a vital source of food,” past president of the Canadian Cattle Association Bob Lowe said in an interview with Global News.
“We feel there’s such a large or at least I won’t say how large, but a very vocal movement against animal agriculture in particular beef,” Lowe said.
For the 28th year, the UN summit known as COP (officially the Conference of the Parties under the United Nations Framework Convention on Climate Change) brings policymakers together to discuss climate change. Lowe, speaking from Nanton, Alta., on behalf of the registered lobby group, told Global News the Canadian Cattle Association (CCA) was sending delegates to the summit to explain “the benefits of the cattle industry to the environment and to human beings as far as the nutritional source of food.”
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A 2019 Canadian government analysis states nearly 40 per cent of Canadians are actively trying to incorporate more plant-based foods into their diets. It estimates alternative proteins could grow to comprise a third of the total market by next year, which is worth billions. Lowe said the CCA will focus on explaining the benefits of the cattle – namely that a cow eats plants that are tougher for humans to digest “and turn it into a very high quality, nutritious food source.” “This COP is going to be a huge thing for, I believe, feeding the world,” Lowe said. He told Global News the industry is working to reduce GHGs.
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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 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, we were very surprised when the PEI Cattleman’s Association nominated our farm.that methane is a big problem. “We realize
We’re doing lot then of research now.” CMB:aAnd you wereright attending the Ten per cent of Canada’s GHGs come from Canadian Beef conference in Calgary you won. crop andand livestock production, according to the federal government including fossil DF: Yeah! That was(not a very nice moment fuels or fertilizer). for us. But I don’t like to use the word win actually. However, being recognized for our— commitment was That includes methane one molecule a real honour. If you want to know of which contributes at much as carbon the truth, it was a pretty humbling dioxide molecules, according to Tim experience. As I said to CBC when they McAllister, a Lethbridge, Alta.-based phoned me after the conference, I was researchjust scientist andit.Agrifloored,with reallyAgriculture couldn’t believe Food Canada. CMB: So now that you have been recognized, do you think that will But evendraw so, he told Canada’s food more attention and garner more agriculture GHG emissions are relatively nominations out of Atlantic Canada small compared to other sectors of the going forward?
economy. DF: Absolutely. We’ve gotten a lot
of good press highlighting the island
Giving livestock high-energy diets early cattle industry. I’m positive you’ll see on and adding vegetable oil to their diets more farms in our neck of the woods nominatedemissions, next year. And I have to give lowers methane McAllister said. the Canadian Cattleman’s Association recognition for reduce choosingGHGs a farmby from While humans could eating Prince Edward Island. We are small less or no meat, , McAllister told Global players in the national beef industry News, “it’s no good to produce a bunch and I think it was a real credit to their of food that has a low greenhouse gas organization to recognize us. They emissions if it doesn’t meet the nutritional treated all the nominees royally and it requirements of people.” was a real class act. It was a wonderful experience.
Meat offers nutrients like amino acids, iron or vitamins in higher concentrations than plant-based proteins, he said. meatbusiness.ca meatbusinesspro.com
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TACKLING CLIMATE CHANGE AND ALLEVIATING HUNGER: STATES RECYCLE AND DONATE FOOD HEADED TO LANDFILLS By David R. Martin & Michael Casey, Associated Press When Sean Rafferty got his start in the grocery business, anything that wasn’t sold got tossed out. But on a recent day, Rafferty, the store manager for ShopRite of Elmsford-Greenburgh in New York, was preparing boxes of bread, donuts, fresh produce and dairy products to be picked up by a food bank. It’s part of a statewide program requiring larger businesses to donate edible food and, if they can, recycle remaining food scraps.
“Years ago, everything went in the garbage … to the landfills, the compactors or wherever it was,” said Rafferty, who has 40 years in the industry. “Now, over the years, so many programs have developed where we’re able to donate all this food … where we’re helping people with food insecurities.” New York is among a growing number of states targeting food waste over concerns it is taking up diminishing landfill space and contributing to global warming as meat, vegetables and dairy release the greenhouse gas methane after being dumped in a landfill. Rescuing unwanted fruits and vegetables, eggs, cereals and other food also helps to feed hungry families.
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Globally, about a third of food is wasted. In the United States, it’s even higher, at 40%, according to the Harvard Food Law and Policy Clinic. The U.S. spends about $218 billion each year growing and producing food that is wasted. About 63 million tons (57 million metric tons) goes to waste, including 52.4 million tons (47.5 million metric tons) that ends up in landfills and 10 million tons (9 million metric tons) never harvested from farms. “What’s shocking to people often is not only how much we waste … but also the impact,” said Emily Broad Leib, a Harvard University law professor and director of the school’s Food Law and Policy Clinic. “Food waste causes about 8% to 10% of global greenhouse gas emissions.” Broad Leib says 20% of water in the U.S. is used to grow food “that we then just throw away, so we’re basically taking water and putting it directly into a landfill.” Continued on page 20
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Several states have joined New York in setting up systems allowing food to be donated. Rhode Island requires food vendors servicing education institutions to donate any unused food to food banks, while Massachusetts limits the amount of food that businesses can send to landfills, which Broad Leib said has increased food donations in the state by 22% over two years. New York’s program is in its second year, and state officials believe it’s having a significant impact.
But she and others also note there is growing awareness of the need to do something about food waste in the U.S. In 2015, the U.S. Department of Agriculture and Environmental Protection Agency announced a goal of 50% food waste reduction by 2030.
As of late October, the program had redistributed 5 million pounds (2.3 million kilograms) of food — the equivalent of 4 million meals — through Feeding New York State, which supports the state’s 10 regional food banks and is hoping to double that number next year. Among those required to donate food include colleges, prisons, amusement parks and sporting venues.
That has prompted a number of state-led initiatives, along with smaller, nonprofit efforts. Ten states and the District of Columbia have passed legislation or executed policies to reduce, compost or donate waste. All 50 states have passed legislation shielding donors and recovery organizations from criminal and civil liability linked to donated food. California and Vermont have launched programs converting residents’ food waste into compost or energy, while Connecticut requires businesses, including larger food wholesalers and supermarkets, to recycle food waste. Farmers in Maryland can get a tax credit of up to $5,000 per farm for food they donate.
“Certainly, we should be reducing the amount we waste to start with, but then we should be feeding people before we throw food away if it’s good, wholesome food,” said Sally Rowland, supervisor with the state Department of Environmental Conservation’s Organics, Reduction and Recycling section. “To me, it’s a commonsense kind of thing and I think it’s just kind of built that momentum of people understanding about how much food we’re really wasting.” New York’s Westchester County has eight refrigerated trucks that pick up all types of perishable food, according to Danielle Vasquez, food donations coordinator for Feeding Westchester, one of the state’s food banks.
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The group started working with businesses in 2014 but has seen participation ramp up since the donation law went into effect last year. Much of the food collected goes to nearly 300 programs and partners throughout the county, including a mobile food pantry and the Carver Center, a nonprofit serving Port Chester’s families and children, which has a pantry. “This time of year is very important for us and a lot of families across Westchester,” Vasquez said. “There is the high cost of food. There is a high cost of living. Westchester is a very expensive county to live in. … We are here to supplement our families as much as we can so, that way, they can focus that money on paying their bills.” Among those visiting the Carver Center earlier this month was Betsy Quiroa, who lamented how the cost of everything had gone up since the coronavirus pandemic. She was counting on getting milk, eggs, fruits and vegetables during her visit and said she didn’t care if the produce was dented or slightly damaged.
Despite New York’s success, advocates for food waste worry not enough is being done to meet the 2030 goal. Broad Leib and others have called for a national effort to coordinate the various state and local policies. There is a goal, “but we don’t really have a great roadmap … and how we’re going to actually achieve that end goal by 2030, which is kind of crazy,” Broad Leib said, adding that a one-person liaison office in the USDA isn’t sufficient to address the problem. Kathryn Bender, a University of Delaware assistant professor of economics, said donation programs are helpful, but she worries they might shift the burden from businesses to nonprofits, which could struggle to distribute all the food. “The best solution for food waste is to not have it in the first place,” Bender said. “If we don’t need to produce all that food, let’s not put all the resources into producing that food.”
“Coming here is good,” said Quiroa, a mother of four who relies on Social Security. “If you are not working, you buy nothing. This is the problem.”
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WRAPPING UP CANADIAN AGRICULTURE IN 2023 As we bid farewell to another year, we reflect on the achievements and challenges that shaped the 2023 Canadian agricultural landscape. In the face of considerable cost pressures and global economic uncertainty, Canadian agriculture emerged as a beacon of resilience and innovation by demonstrating a commendable commitment to provide its hard-earned harvest to Canadians and to the world. Bill C-234 was proposed for precisely this purpose, seeking to provide exemptions for the use of natural gas and propane on farms for essential activities such as grain drying and barn heating. In 2023, the federal carbon tax witnessed another hike reaching $65 per tonne of CO2 (equivalent to 14 cents per liter of gasoline), and another increase to $75 per tonne (17 cents per liter of gasoline) is slated for this upcoming year. This escalation underscores the additional financial strain placed on the agriculture sector. The introduction of C-234 presented a crucial opportunity for politicians to respond to the sector's pleas, offering a glimmer of hope to farmers who yearned for their concerns to be acknowledged and addressed by the government. However, despite these strides, 2023 was not without its fair share of difficulties. In particular, high energy costs and labour shortages proved to be significant drag on Canadian agri-businesses. Recent survey data from the Canadian Federation of Independent Business (CFIB) reveals that almost nine in ten Canada’s small agri-businesses cited fuel/ energy costs as a major source of frustration in 2023. Consequently, it is unsurprising that over two-thirds of them want the government to prioritize reducing the overall taxation burden, notably by exempting agri-businesses from the carbon tax for day-to-day operations.
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However, this hope came crashing down as a recent amendment to remove barn and greenhouse heating from the bill passed in the Senate, throwing the bill back on the list of ‘to-be-discussed’ bills in the House of Commons. It is disheartening to witness the livelihoods of hardworking farmers become mere bargaining chips in the political arena. Agriculture is not just an industry; it is a way of life for countless Canadian families. The repercussions of these decisions extend far beyond the political arena, reaching into the very heart of rural communities and Canadians who depend on affordable food.
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Amid ongoing labour shortages in the agriculture sector, the need for government support in adopting automation becomes unmistakably clear. As the industry grapples with a dwindling workforce, automation emerges as an innovative solution to ensure long-term productivity and efficiency. Automated technologies have the potential not only to alleviate the immediate challenges posed by labour shortages but also to usher in a new era of innovation and sustainability. From autonomous tractors to drone-assisted crop monitoring, automation is reshaping traditional farming practices, offering a glimpse into the future of agriculture. It’s crucial for policymakers to recognize that automation is not merely a passing trend but a necessity. Governments must play a role in supporting farmers as they transition to automation, ensuring a sustainable agriculture sector. “Agriculture and agri-food are a competitive business. Now we have to compete with the world market after paying uniquely Canadian taxes (for carbon emissions) and regulation disadvantaging Canadian farmers (and consumers). This is putting Canadians out of business.” Livestock Farm Business Owner, Alberta In addition to high energy costs, labour shortages were also another pervasive issue plaguing Canadian agri-businesses. This was the top factor stifling sector growth for the whole year, and without meaningful solutions, we expect this challenge to persist into future years. Nevertheless, the agriculture community has displayed resilience by implementing innovative solutions, notably through the adoption of automation and digital technologies to streamline operations. According to CFIB data, nearly half (46%) of small agribusinesses have expressed plans to invest in automation for the foreseeable future. Seven out of ten agree that such investments will provide long-term relief for labour needs. Moreover, a little over two-thirds (68%) indicated a preference for automation over the continuous application for temporary foreign workers – understandably so, considering all the burdensome paperwork and costs that come with said program. These businesses have underscored that automation would not only enhance efficiency and improve productivity (83%) but also yield substantial cost and time savings (74%). Despite these promising statistics, however, concerns persist as seven out of ten agribusinesses express apprehensions around the costs associated with automation. meatbusinesspro.com
In the face of a challenging year, the agricultural sector showcased remarkable resilience and tenacity. Despite grappling with labor shortages, rising costs, and the lack of anticipated government support, farmers demonstrated an unparalleled ability to adapt and innovate. While disheartening to note the absence of substantial government backing, there's an undeniable optimism that arises from the collective strength of our producers and their ability to overcome adversity. As we look ahead to 2024, it is evident that with even a modest collaborative effort between farmers and the government, the potential for positive change and growth in the agricultural sector is immense. We hope to see policymakers recognize this and cultivate a more prosperous and sustainable future for agriculture in the coming year.
SeoRhin Yoo is a Policy Analyst for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 97,000 members (4,500 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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