Our June 2024 Issue

Costco’s $1.50 Hot Dog Price is Safe

5 6 10 13 14 16 18 20 22

Beef on the Brink: Labour Strikes Expose Cracks in Canada’s Meat Processing Industry

Meat Sector Calls for Action to Keep Food Prices Affordable and Help Save Rural Canada’s Economy

Metro Ontario Expands its Beef Sustainability Sourcing Across Platinum Grill Beef Brand

Introducing the Handtmann

ConProSachet System

Entries for World Steak Challenge 2024 Now Open

Parkhill Meats Begins Construction on New Processing Facility

CFIN Highlights Innovations to Curb Inflation and Stabilize Food Prices

Temporary Foreign Workers

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PUBLISHER

Ray Blumenfeld

ray@meatbusiness.ca

MANAGING EDITOR

Scott Taylor

publishing@meatbusiness.ca

DIGITAL MEDIA EDITOR

Cam Patterson

cam@meatbusiness.ca

CONTRIBUTING WRITERS

Dr. Sylvain Charlebois, Juliette Nicolaÿ, Jack Roberts, Cam Patterson

CREATIVE DIRECTOR

Patrick Cairns

CO MMUNICATIONS W EST IN C

Phone: 204.985.9502 Fax: 204.582.9800

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COSTCO’S $1.50 HOT DOG PRICE IS SAFE

By Nathanial Meyersohn, CNN

Costco’s new chief financial officer has a reassuring message for inflationweary customers: don’t worry about the price of the $1.50 hot dog-soda combo.

“To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Costco CFO Gary Millerchip said on a recent earnings call with analysts. It was Millerchip’s first call with analysts since taking over for Richard Galanti, Costco’s colorful finance chief of nearly four decades and the longest-serving CFO of a major U.S. public company.

With Costco’s leadership change, and other longtime deals like Trader Joe’s 19-cent bananas and Planet Fitness’ $10 membership ending amid rising inflation, some had speculated about the future of Costco’s $1.50 hot dog. The price has remained the same since 1985.

If Costco’s hot dog deal kept pace with inflation, it would be three times as expensive today, nearly $4.50. But Costco’s $1.50 combo is a strategic decision, known as a loss-leader: The company is willing to lose money selling the hot dogs at that price as long as it helps Costco draw in and retain customers.

It’d be an odd time to raise prices, anyway. Other companies, such as Walmart and Target, have been cutting prices on thousands of items to draw in shoppers who are increasingly fed up with rising costs.

The $1.50 hot dog is a powerful marketing tool for Costco and is synonymous with Costco’s brand.

“I know it sounds crazy making a big deal about a hot dog, but we spend a lot of time on it,” Costco co-founder Jim Sinegal told the Seattle Times in 2009. “We’re known for that hot dog. That’s something you don’t mess with.”

Sinegal also famously once said, “If you raise the effing hot dog, I will kill you. Figure it out,” according to former CEO Craig Jelinek.

Costco offsets hot dog losses by increasing prices of pizzas and other items at its food courts and cutting costs.

BEEF ON THE BRINK: LABOUR STRIKES EXPOSE CRACKS IN CANADA’S MEAT PROCESSING INDUSTRY

By Dr. Sylvain Charlebois

On May 27th, nearly 1,000 Cargill workers in Guelph went on strike. The Guelph plant is one of the largest beef processing facilities in the country and the largest in Eastern Canada.

However, this might just be the beginning. The Cargill Case Ready plant in Calgary could also see workers on the picket lines later this month, as a strike vote is scheduled for early June. Labour disputes in beef processing are not new, and the pandemic highlighted the dark side of working conditions in this sector. The beef industry now faces a potential rupture that has been long overdue.

“Labour strikes at Cargill's Guelph and perhaps Calgary plants reveal deep-seated vulnerabilities in Canada's beef processing industry, from heavy reliance on a few major facilities to the challenges of poor working conditions. As beef prices soar and consumption drops, the sector faces an urgent need for modernization and investment.”

The Guelph plant is the only major federally licensed beef processing facility in Eastern Canada, capable of exporting and shipping outside the province. If the strike extends beyond a few weeks, consumers in Eastern Canada might see more imported beef from the United States or even Mexico. However, it is unlikely that prices will be significantly impacted, given that they are already quite high at the meat counter.

This is not good news for cattle producers in Ontario and Quebec. Eastern-based cattle producers can hold on to their livestock for a while, but costs inevitably rise with keeping livestock, and quality is also impacted. They may need to transport their herd to Alberta or the United States to sell. Regardless, the distances to harvest the meat would clearly be greater and more costly.

The potential strike at the Calgary plant could also disrupt the beef market in many parts of the country. Meat is sourced from the major Cargill beef processing facility in High River and then transported to Calgary, where workers trim, weigh, and package it. The packaged products are shipped and distributed on the same day. The domino effect created by an idled Calgary plant could be substantial.

Canada produces excellent beef, but the weakest link in the beef sector has always been domestic processing. Just three major plants process about 90% of all the beef in the entire country. These plants rely heavily on foreign workers, as recruitment has always been challenging due to the rough working conditions.

For consumers, climate change and complexities affecting supply chains have slowly made beef a luxury item at the grocery store. Due to droughts affecting inventories in both the United States and Canada, some beef cuts have increased by almost 50% since early 2020. Prices have been incredibly volatile. Ground beef, known for its price stability and affordability, has increased by 11%, according to Statistics Canada. With higher prices, beef consumption has significantly decreased. Each Canadian is expected to consume less than 24 kg of beef in 2024, the lowest level in more than 50 years. That’s a drop of 38.4% since 1980, and most experts expect that trend to continue.

Despite its luxury status, the beef value chain has always been managed with acute frugality. In pork and chicken, the processing sector has seen more capital investment and automation. New greenfield plants have been built in Hamilton, London, and other parts of the country. However, the beef industry has not seen a new plant in years, making it more difficult to comply with new food safety and working environment regulations.

It’s not as if beef processing is dominated by underfunded players. Take Cargill, for example. The company, a privately held U.S. firm with a 159-year history, reported annual revenues exceeding $170 billion in 2023. Net profits, however, were less than $4 billion, demonstrating how low margins are in the food industry. Cargill employs over 160,000 people across more than 70 countries. JBS, another foreign company, controls the other federally licensed plant in Alberta and is also a massive organization.

NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA

Global public health organization showcases services for Canada’s growing and fast-changing

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.

These labour disruptions point to a much broader problem in federally licensed beef processing that has not been addressed in years. Every time a plant closes, for one reason or another, beef producers are held hostage with no compensation while retail prices increase. As for striking workers, it’s hard to blame them, as they know few other Canadians would want to do the job, so why not ask for more money? Unless automation takes a greater role in beef processing, the industry will continue to operate archaic plants worthy of the 1980s.

Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate these challenges, including certification and auditing, consulting, technical services, training and education, food and label compliance, packaging, and product and process development.

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, submit a question or read an FAQ.

NSF International’s Canadian website provides information

technical resources, expertise and insight for a wide range

product, including food and label compliance, packaging,

Training and education: Training for the global food and beverage industry across the supply chain as an

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MEAT SECTOR CALLS FOR ACTION TO KEEP FOOD PRICES AFFORDABLE AND HELP SAVE

RURAL CANADA’S ECONOMY

Changes to the Temporary Foreign Worker program have had a disproportionate impact in rural areas.

Recent changes to foreign worker rules from the Government of Canada are having a disproportionate impact on the rural Canadian economy, and the national organizations representing the Canadian meat industry are calling on the Government to reconsider these changes.

The Canadian Meat Council, the Canadian Cattle Association, National Cattle Feeders’ Association, and the Canadian Pork Council are asking Government to restore the Temporary Foreign Worker Program’s Workforce Solution Roadmap, a roadmap introduced in 2022, to address the industry’s critical labour shortage.

While the industry understands the federal government is seized with a housing shortage, temporary foreign workers are not the problem, representing only 9% of the temporary resident population. Meanwhile, the decision to reduce temporary foreign worker numbers is having the precise opposite impact the government says it wants on food affordability in Canada.

On May 1, producers and processors faced not only the reduction of the 30% cap, but a reduction in the time limit for a labour market impact assessment (LMIA)s. Both of these changes were made without industry consultation, and are already having an impact on productivity, competitiveness, and levels of food production possible in Canada.

Agriculture accounts for nearly 10% of Canada’s gross domestic product, and the sector provides 1 in 9 jobs within the Canadian economy.

Continued on page 12

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“Every job unfilled in our barns, in our processing facilities, and in our supply chain has an outsized impact on rural areas because Canada does not have additional people living in these areas who can fill these jobs,” said Rene Roy, Chair of the Canadian Pork Council. “If there’s a shortage of workers in the processing sector, it runs the risk that producers can’t ship their product to market, causing uncertainty for producers and consumers alike. We need to help recruit more new Canadians to rural areas, and creating uncertainty defeats our efforts to convince people to come join our industry.”

“Beef producers are integral to Canada’s rural economy and changes to the temporary foreign worker program will increase pressures on our labour challenges,” said Nathan Phinney, President of the Canadian Cattle Association. “It is essential that we have a reliable supply chain for our economic sustainability and ability to produce for Canadians and global consumers. Our trade partners need steady, consistent supply—any disruption can impact our ability to compete on a global scale, while keeping costs down at home.”

“As part of the labour market impact assessment (LMIA) application for bringing in foreign labour, producers and processors alike must advertise in Canada and show that Canadians are not willing to take the job,” said Will Lowe, Chair of the National Cattle Feeders’ Association. “Now with a reduction in the amount of time this assessment is valid as well as the length of time assessors take to review applications, there is concern that the industry will not be able to bring in muchneeded foreign workers. The end result will ultimately impact the supply of food Canadian farmers can provide nationally and globally.”

“Industry has proven its case time and again to Government. The Government decision to reduce the cap did not consider the impact to food security data but was instead a knee-jerk reaction to a housing challenge that our industry is not responsible for,” said Chris White, President & CEO of the Canadian Meat Council. “Our industry is mostly located in rural communities, and those communities still depend on these workers to keep our operations going so we can feed Canadians at an affordable price and bring quality Canadian products to the world.”

These associations will, on behalf of their members, continue to ask to hear the concerns of producers and processors – indeed, the entire agricultural supply chain – as they work to improve food security and help ensure affordability for Canadian consumers and our global partners. They urge the government to work with them on these important aims through advanced consultation and dialogue.

METRO ONTARIO EXPANDS ITS BEEF SUSTAINABILITY SOURCING ACROSS PLATINUM

GRILL BEEF BRAND

Metro Ontario has announced that it has achieved its 2022 sourcing commitment to buy three million pounds of beef from Canadian Roundtable for Sustainable Beef (CRSB) Certified farms and ranches by 2026, ahead of schedule.

From now on, the CRSB Certified Mass Balance mark will be displayed on all beef products across Metro Ontario’s Platinum Grill Angus Canadian AAA Beef Program, available in all 131 Metro stores in Ontario.

Responsible procurement is a fundamental aspect of our business. We also know how important it is to our customers. We want to work with suppliers that share our commitment to responsible practices and act on this commitment. CRSB Certified farms can produce beef in a way that’s accountable to the environment, animals, the farmers and ranchers that grow food. Metro Ontario is proud to partner with the CRSB,” says Michael Rose, Vice President Fresh Merchandising, Metro Ontario.

The CRSB’s definition of beef sustainability prioritizes the planet, people, animals and progress through a journey of continuous improvement. The CRSB Certified program provides credible assurances for the

production, processing and sourcing of beef through certified supply chains in Canada. This means verifying outcomes across five areas of sustainability that include conserving and enhancing our natural resources (land, water and air); supporting our people and communities; best practices in animal care; food safety and quality, and embracing efficiencies and innovation that foster continual improvement. These focus areas align closely with multiple elements of METRO’s priorities when it comes to responsible procurement.

It is exciting to see Metro, a long-time member of the CRSB, expanding their commitment in their beef sourcing. This move shows that they value what Canadian beef farmers and ranchers do on the ground every day for the environment, for the animals in their care and their communities,” says Ryan Beierbach, Chair of the CRSB and CRSB Certified rancher from Saskatchewan. “By displaying the CRSB Certified Mass Balance mark on-pack, Metro shows their customers they are making positive contributions through their food choices. We look forward to continuing to work with Metro to expand their sourcing goals."

INTRODUCING THE HANDTMANN CONPROSACHET SYSTEM

Edible alginate packaging for small sachets, pods or pockets

The new Handtmann ConProSachet system coextrudes perfectly portioned edible alginate packets at industrial speed for a variety of fillings, from jams and cheeses to energy gels, meat snacks or condiment fillings. The system uses seaweed-based material instead of plastic film so the filled sachets can be ingested or will breakdown and biodegrade within a few weeks.

Handtmann innovation makes this precise level of small portion coextrusion possible, including a uniquely designed co-extrusion head that produces an exceptionally thin but effective alginate casing around the product. Circulating dividing elements then compress the filled flow pack, separating it into a coherent chain of individual pods for separation into individual portions. The seal is a few tenths of a millimeter thick, providing a precise, uniform, and reliable closure for each portion at very high speeds.

According to Rafal Rusiniak, Sales Manager, “This technology opens new doors and the creative uses for these no-leak edible sachets for snacks, treats and quick energy bursts when on the run holds great potential for innovative processors in search of a more environmentally friendly product line.”

The Handtmann ConProSachet System not only expands the possibilities for food packaging but also aligns with sustainable practices by eliminating the need for synthetic materials. It's an ideal solution for both the food industry and eco-conscious consumers looking for convenient, innovative, and environmentally friendly options.

The small edible packets are ideal for nutritional supplements and carbohydrate-rich fillings for competitive athletes needing quick energy bursts during endurance activities in sustainable packaging. They also offer environmentally sensitive alternatives to current small-portion packaging for popular convenience food and quick-serve condiments as well as waste-free onthe go cheese and meat snacks.

farm.

CMB: And then you were attending the Canadian Beef conference in Calgary and you won.

“Our Handtmann ConProSachet system has been developed for the industrial production of sachets,” says Rafal Rusiniak. It is energy efficient, intuitive in handling, and easy to convert for different sachet sizes and fillings.”

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 a real honour. If you want to know the truth, it was a pretty humbling experience. As I said to CBC when they phoned me after the conference, I was just floored, really couldn’t believe it.

The Handtmann Sachet System was developed in cooperation with Notpla, a UK-based material innovation company and winner of the Earthshot Prize for environmental innovation. Notpla is an acronym for “not plastic” and the company is committed to the development of allnatural packaging solutions.

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?

Handtmann Cananda Limited is a leading technology solutions provider to the Canadian food processing industry that specializes in grinding, mixing, portioning, dividing, depositing, forming and filling solutions. From preparation to package, Handtmann solutions provide practical value with innovative design, the strictest manufacturing standards and rugged processing technologies known for operational accuracy, safety and reliability. Canada Limited is a wholly owned independent sales and service subsidiary of the Handtmann Group, a 5th generation family-owned business established and headquartered in Biberach, Germany since 1873.

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.

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ENTRIES FOR WORLD STEAK CHALLENGE 2024 NOW OPEN

The prestigious World Steak Challenge (WSC), the competition that puts the planet’s finest cuts of steaks to the test, is returning this November.

Now in its 10th year, the WSC is the only event that shines the spotlight on the very best steaks, producers and suppliers across the globe as judged by a tasting panel of experts from all over the world.

Beef and steak producers, wholesalers and retailers have until July 8th to enter the 2024 competition, which will be judged in September at Vlees & Co Steak Restaurant in Amsterdam. All entries are assessed by a panel of more than 70 independent judges with the best performing steaks awarded much coveted gold, silver or bronze medals.

The winners will be announced at a special awards dinner held at Smith and Wollensky on November 11th. Categories open for entry this year are Fillet, Sirloin and Ribeye and the new category Wagyu.

All Gold medal winning steaks automatically qualify for the international categories, where the best steak will be announced from Asia, Europe, North America, Oceania and South America.

One producer will also claim the coveted overall title of The World's Best Steak.

A number of new awards have been added to the challenge this year. New for 2024 will be the Environmental, Social and Governance Award that recognizes excellence in sustainable beef production practices that have positively impacted the beef industry. The award aims to honour beef producers who demonstrate outstanding commitment to environmental stewardship, social responsibility, and corporate governance within their operations.

Other new awards include the Innovation Award, which celebrates pioneering advancements and groundbreaking initiatives in the field of beef production and steak preparation; the Small Producer Award that acknowledges the exceptional contribution and achievement of a small-scale beef producer (fewer than 100 beef cows); and the Large Producer Award that recognises the significant impact and influence of a large producer in shaping the global beef industry while upholding the highest standards of craftsmanship, sustainability, and consumer satisfaction.

“The WSC remains the must-enter competition for steak producers and suppliers to allow them to showcase their product quality and breed credentials on an international stage,” says Restaurant editor Stefan Chomka. “In a world where taste, provenance and sustainability in meat has never been greater, this competition recognises those in the industry that continue to strive to bring the best quality meat possible to people’s tables across the globe.”

The WSC was launched in 2015 to deliver a recognised stamp of quality to support world-class steak production on a global platform.

Judging for the 2023 competition was held in Amsterdam with the winners announced at a special awards dinner at London-based steakhouse Smith & Wollensky. A total of 346 medals were awarded in the 2023 challenge, including a record 134 gold medals, with 120 steaks given silver medals and 92 steaks bronze medals.

Last year’s overall winner was Australian producer Jack’s Creek, which took home the accolade for its grain-fed wagyu black angus cross sirloin, which was also named the World’s Best Sirloin and World’s Best Grain Fed Steak as well as Oceanian’s Best Steak. Other winners included Itoham Yonekyu Holdings; Alliance Group; Danish Crown; and Creekstone Farms.

For more information, visit https://www. worldsteakchallenge.com

PARKHILL MEATS BEGINS CONSTRUCTION ON NEW PROCESSING FACILITY

The Beef Farmers of Ontario (BFO) has announced that Parkhill Meats and its owners as they begin to expand their business through the construction of a new processing facility in Middlesex County.

The commencement of the construction was marked in late May by a groundbreaking ceremony hosted at the site of the new facility, and was attended by Ontario’s Agriculture Minister, Lisa Thompson; Steve Pinsonneault, MPP for Lambton-Kent-Middlesex; Liane Rood, MP for Lambton-Kent-Middlesex; representatives from BFO; and many partners, stakeholders, and community members.

Parkhill Meats was established in 2016 with just three employees and has since grown to employ close to 20 employees where they produce local and halal certified beef, veal, lamb and goat products for customers across Ontario. With growing demand for halal certified meats, Parkhill Meats began plans for further expansion of their business.

“The expansion project has been a long time coming, but we are happy to say that the effort and time has paid off. Our growth over the years made it clear that to continue to grow profitably, we needed to implement efficient processes, effective specs and setup, and advanced technology,” says Yaser Al-Qayem of Parkhill Meats. “The planning phase took us more than two years of debating what we should and could do, and what we are starting to build today is the first step towards implementing our strategic vision. We’re grateful to so many stakeholders who supported us and continue to support us along the way.”

“I was pleased to see this expansion project at Parkhill Meats kick off at the ground-breaking ceremony. With $2.4 million in support from the Ontario government

through the Strategic Agri-Food Processing Fund, Parkhill Meats will have a state-of-the-art facility located close to farmers in southwestern Ontario,” says Lisa Thompson, Ontario Minister of Agriculture, Food and Rural Affairs. “By expanding processing capacity and focusing on a growing market for halal products, Parkhill Meats’ thoughtful approach will generate sustainable, long-term growth and success.”

“Meat processing is an integral component of the beef supply chain. It’s nice to see investment from the provincial government in the expansion of this facility,” says Craig McLaughlin, BFO President. “Beef farmers experienced first-hand the importance of processing capacity throughout the pandemic. Since then, and with increasing demand for Ontario beef, we continue to advocate for increased investment in the meat processing sector.”

The expansion of Parkhill Meats is slated to be completed in 2025, and it’s forecasted the new facility will require an additional 20 employees including butchers, packagers, logistics handlers and cleaners.

“The establishment of a new processing facility in Ontario is good news for our sector, and signals growth and opportunity for Ontario beef. We look forward to following the construction and opening of the new Parkhill Meats facility next year,” shares John Baker, Director of the Ontario Beef Market Development Program.

As an association, BFO continues to advocate for increased investment in meat processing infrastructure and a more supportive regulatory environment for the red meat sector in Ontario.

For more information, visit https://www.ontariobeef.com/

CFIN HIGHLIGHTS INNOVATIONS TO CURB INFLATION AND STABILIZE FOOD PRICES

The Canadian Food Innovation Network (CFIN) released its latest whitepaper, Unpuzzling Food Inflation: How Innovation Adoption by Canada's Food Processing Sector will Flatten the Curve. Providing an in-depth analysis of the critical issues facing Canada's food and beverage sector, the whitepaper illustrates how technology and innovation offer tangible solutions to combat rising food costs.

Recent statistics underline the urgency: between February 2021 and February 2024, Canadian grocery prices jumped by 21.6%, impacting 6.9 million Canadians with food insecurity. Dana McCauley, CEO of CFIN, highlights the need for a strategic pivot to innovation. "The relentless rise in food prices is a complex issue, driven by factors such as rising input costs, labour shortages, and macroeconomic pressures. Our white paper demonstrates that adopting innovative technologies is not just beneficial but essential for stabilizing food prices and ensuring economic stability," McCauley stated.

Key examples of innovative Canadian solutions from the whitepaper include:

• Reducing Input Costs: Companies like Crush Dynamics Inc. are at the forefront of reducing input costs through innovative fermentation processes that transform byproducts into valuable food ingredients. These initiatives significantly cut costs and enhance food quality, making production more sustainable and economically feasible.

• Addressing Labor Shortages: The food and beverage sector is facing a critical shortage, with a shortfall of 50,000 workers and an anticipated 66,800 retirements by 2030. To mitigate this, CFIN supports the adoption of AI and robotics to enhance productivity and reduce reliance on manual labour. Innovations like those from DeepSight Réalité Augmentée, which employs augmented reality for faster and more effective training in food processing sectors, are instrumental. Their technology enables more rapid onboarding and upskilling of employees, thus efficiently addressing the labour gap.

• Minimizing Food Waste: CFIN has championed the development of technologies designed to reduce waste throughout the food production cycle. This includes an X-ray system that efficiently identifies contaminants to prevent waste and technologies that degrade bioplastics into beneficial soil additives, promoting sustainability and reducing environmental impact.

NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS

"By combining smart glasses with real-time assistance, DeepSight Réalité Augmentée is accelerating onboarding, enhancing safety, and boosting overall efficiency," said Nicolas Bearzatto, President of DeepSight Réalité Augmentée. "Our immersive training platform allows workers to interact with both their physical environment and virtual elements, ensuring they quickly become productive while minimizing risks. As smart glasses become more prevalent, our technology seamlessly merges the digital and physical worlds, streamlining workflows and addressing critical labour shortages in the food processing sector. These and other innovative solutions developed in Canada help address the labour challenges, ultimately contributing to a more efficient and resilient food supply chain."

Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility

By Amy Reid, Peace Arch News

These initiatives underscore CFIN's commitment to leveraging technological innovation to tackle the pressing issues of labour shortages, high input costs, and significant food waste in the Canadian food sector.

A federally licensed beef processing facility is in the works in Surrey, BC.

“There’s a new building coming forward, a new abattoir, I think that’s the French pronunciation of slaughterhouse,” said Councillor Mike Starchuk. “So Surrey will have a newer facility with a better capacity so people will have the ability to not have to ship an animal to Alberta to have

CFIN also details how 70% of the food consumed in Canada is produced domestically, presenting a significant opportunity to impact the entire supply chain through innovation. "This is a story that hasn't been fully told," added McCauley. "By investing in technology, we can tackle these challenges head-on, making our food systems more competitive, productive, and sustainable."

so as to not emit odours. And while there is an operational 6,000-square-foot abattoir on the property now, it’s can only process a limited number of cattle.

Agricultural and Food Sustainability Advisory Committee.”

Agricultural Land Reserve at 5175 184th St. The planned 30,000-square foot abattoir in Cloverdale would process up

Chris Les is general manager of Meadow Valley Meats, 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.

CFIN has grown to over 5,000 members, driving forward technologies that promise to mitigate the trend of rising food prices. The organization is poised to expand further, aiming to catalyze innovation across Canada’s food and beverage sector.

“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.”

For more information, visit https://www.cfin-rcia.ca/ home

small by industry standards, compared to the largest meat

The proposed facility would be fully enclosed and designed

TEMPORARY FOREIGN WORKERS

Key to mitigating agricultural labour shortages

Canada's approach to immigration is under scrutiny. The Senate has recently released a report on the Temporary Foreign Worker Program, suggesting that the government phase out employer-specific work permit and explore the viability of sector-and/or-regionspecific work permits. However, a recent report from the Canadian Federation of Independent Business (CFIB) revealed that while most agri-businesses (59%) would be in favour of multi-employer work permits allowing them to share employees between farms based on the needs of their business, few supported the idea of a regional or sectoral specific work permit.

It is no secret; that the agriculture sector is struggling with a chronic labour shortage and the problem is not going away with estimates suggesting there will be 100,000 vacant jobs in the agriculture sector by 2030. When the much-needed labor can’t be found at home, many agribusinesses start looking for workers abroad.

CFIB data found that three in 10 agri-businesses hired foreign workers in 2023, namely through the Temporary Foreign Worker Program (TFWP). The TFWP allows agri-businesses to hire foreign workers when they are unable to find local candidates. Temporary Foreign Workers (TFWs) accounted for nearly one-fourth of the sector’s workforce in 2022. According to Employment Social Development Canada (ESDC) of employers who hired TFWs, 92% reported that TFWs helped them meet the demand for their products or services, 89% stated that they helped them stay in business and 80% were able to meet financial targets.

There are many misconceptions around the TFWP (e.g., wage suppression, and abuse). As one CFIB member referenced “I would not have the same people back year after year if they were mistreated or not paid, etc. Tough politics around this program”. Of note, foreign workers are paid comparable wages to Canadian workers and many of the program streams require other benefits to be provided to the foreign worker, such as housing and transportation. And, while there may be isolated bad actors that should not be tolerated, 94% of TFW employers have been found compliant with the program’s requirements.

Although, the Senate report suggested a sector-and/ or-region-specific work permit, the majority of agribusiness owners do not support these types of work permits, whether it is under the current program structure (59% against) or under a new structure (50% against). With a sectoral-and/or regional open work permit, the risk for employers of losing foreign workers, in whom they have invested a lot of money to recruit, and train, is heightened. This could create a chilling effect if the incidence of employers waiting for others to recruit foreign workers only to poach them without expending as much effort or costs increases. Mitigation would be necessary and could include compensation or indemnities for compliant employers who covered the original expenses of employees and a fast, streamlined way of finding new temporary foreign workers.

Rather, to better align the program with the practical needs of agri-businesses, they should have the option to share or transfer workers between farms and employers. Many agri-businesses (59%) would welcome this possibility. A multi-employer work permit would allow TFWs to have multiple employers depending on the business needs. All employers identified on the work permit would be accountable only for the employment terms and conditions set out in their section of the agreement, and costs would be shared on a pro-rated basis.

In conclusion, when reviewing the program, policymakers must ensure its structure does not incentivize employee poaching and reflects market realities.

Juliette Nicolaÿ is a Bilingual 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 (4,900 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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Remco and The Yes Group Protecting

your Customers

Remco products are colour-coded to help divide the production cycle into different zones. By identifying these zones as different cleaning areas, the movement of bacteria around the production area can be blocked.

Our products were developed with the Hazard Analysis Critical Control Point (HACCP) in mind.

No matter what colour-coding plan is implemented, Remco Products from The Yes Group provides significant added value at no additional cost. From scoops to squeegees, from brushes to shovels, we have the products and the colours to enhance any professional quality assurance program.