Canadian Beef Industry Overcomes Challenges to Achieve Many FiveYear Goals
WTI Achieves Highest BRCGS Rating Taxing Success
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August 2024 Volume 25 Number 8
PUBLISHER
Ray Blumenfeld
ray@meatbusinesspro.com
CO-PUBLISHER
Deb Wilson
deborah@meatbusinesspro.com
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Scott Taylor publishing@meatbusinesspro.com
DIGITAL MEDIA EDITOR
Cam Patterson
cam@meatbusinesspro.com
CONTRIBUTING WRITERS
Christine Hall, Eric Bohl, Bradlee Whidden, Cam Patterson, Jack Roberts
CREATIVE DIRECTOR
Patrick Cairns
Meat Business Pro is published 12 times a year by We Communications West Inc
MARK CARTER IS NEW IAFP PRESIDENT
Mark Carter has assumed the presidency of the International Association for Food Protection (IAFP) at the conclusion of their recent annual meeting.
Carter is the CEO of MC Squared Enterprises, Inc. (MC2), an independent consulting firm with in-depth expertise in life science business, food safety, and technology development and deployment. MC2 works with organizations that are focused on improving public health.
Carter has extensive international business and technical experience. He most recently served as Chief Operating Officer of Matrix Sciences as well as the Executive Vice President of Corporate Development, where he was responsible for Matrix Sciences Mergers & Acquisitions activity. He previously held positions as CEO of QCL and Corporate Vice President of Research & Development with the Silliker Group Corporation (now Mérieux NutriSciences). He has served within the food industry as Section Manager for Microbiology and Food Safety at Kraft Foods and Corporate Laboratory Group Leader at McKee Foods Corporation.
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An active member of IAFP since 1993, Carter has served on the Maurice Weber Laboratorian Selection Committee, the Food Protection Trends Editorial Board, the Nominating Committee, the Journal of Food Protection Management Committee, and the Tellers Committee. He was a co-founder of the Sample Prep working group and actively participates in both the Applied Laboratory Methods and the Food Sanitation and Hygiene PDGs. His commitment to the Association also includes participation and organization of numerous technical symposia and poster presentations.
Carter is a graduate of the University of Georgia with a B.S. in Microbiology and holds an M.S.A. from Columbus State University. He is a registered clinical and public health microbiologist with the American Academy of Microbiology.
Members of the Executive Board include:
• President-Elect, Manpreet Singh, Ph.D., University of Georgia, Athens, Georgia Vice President, Manan Sharma, Ph.D., U.S. Department of Agriculture, Agricultural Research Service, Beltsville, Maryland
• Secretary, Pam Wilger, Post Consumer Brands, Shakopee, Minnesota
• Past President, Tim Jackson, Ph.D., U.S. Food and Drug Administration, Santa Cruz, California
Affiliate Council Chair, Caio Carvalho, Cargill, São Jose Dos Campos, Brazil
For more information, visit https://www.foodprotection.org/
WILL CULTURED MEAT EVER WORK? EVEN AFTER $1.6B IN VC MONEY, THE LAB-GROWN MEAT INDUSTRY IS FACING ‘MASSIVE’ ISSUES
By Christine Hall, Techcrunch
When Mosa Meat served up a first-of-its-kind, labgrown hamburger in 2013, it cost over $300,000. Eleven years later, around 200 startups worldwide remain hopeful that growing meat from cells, rather than slaughtering animals, will one day be a major portion of our food supply.
Despite their optimism, such success is not a given. In 2024, the industry has hit such rocky times that multiple startups have been forced to scale back or close shop.
The industry is talking about eventually producing about 30 million pounds of finished product annually. However, more than 100 billion pounds of traditional meat is produced annually today. And if plant-based meat accounts for about 1% of all meat by volume, it’s going to take time for cultivated meat to get to that point, said Better Meat CEO Paul Shapiro, who wrote a book in 2018 called “Clean Meat.”
Any goal that puts cultivated meat in big box grocery stores or on fast-food menus in the 2020s is “unrealistic,” he told TechCrunch.
“Even if it were ready now, and the funding was available now, the time that it takes to build these factories is years. And the fact is, the money isn’t there for it, which is why a lot of these companies have abandoned their plans for commercial-scale factories,” Shapiro said.
For instance, New Age Eats shut down in early 2023, with founder Brian Spears posting on LinkedIn that the company was unable to secure funds to complete its pilot facility. Berkeley-based Upside Foods laid off workers and put plans on hold for a new Chicago-area facility. Israel-based Aleph Farms let go of 30% of its staff in June, also citing difficulties in raising capital.
San Francisco Bay Area-based SCiFi Foods also permanently closed in June. SCiFi CEO Joshua March shared on LinkedIn: “Unfortunately, in this funding environment, we could not raise the capital that we needed to commercialize the SCiFi burger, and SCiFi Foods ran out of time.”
It’s important to note that the startups pursuing labgrown meat are not just pursuing scientific curiosity or a more humane, but equally nutritious, protein alternative. Most global organizations, including the United Nations, are throwing out 2050 as the date when we will need to be producing 60% more food to feed the nearly 10 billion people expected to be inhabiting Earth.
Those working on cultured meat hope it will be a significant portion of that 60%, with no need to slaughter animals or use the kind of land, water and energy resources needed by the traditional meat industry.
Still, as promising as this field was 11 years ago, there has been frustratingly slow progress on the industry’s main barriers.
Companies working on lab-grown meat — although the industry prefers the terms cell-cultured or cultivated meat — make it from animal cells, typically stem cells, that are fed growth factors in some sort of cell-feeding solution, or medium. The cells are fed and grown in bioreactors, then processed with ingredients and flavorings to mimic the taste, texture, look and mouth feel of traditional meat.
Continued on page 8
Yet most companies are unable to produce large quantities of meat from their processes, much less at a low-enough cost or even at price parity with traditional meat. Moreover, the facilities cost hundreds of millions of dollars and take years to build. Achieving taste and texture is also a problem, as is changing the perceptions of people who tend to think of these products as unappetizing “Franken meat.”
On top of all that, very few companies have achieved regulatory approval in the U.S. for their cultivated meat processes.
Perhaps the biggest difficulty of all is the downturn in venture capital funding. In 2021 and 2022, cultivated meat companies pulled in over $1.6 billion in venture funding, according to Crunchbase analysis. As of June, Crunchbase was showing around $20 million in funding into this industry so far in 2024.
“Changing the world and reinventing the food system is hard, which is probably the least shocking conclusion that one can come to,” Amy Chen, chief operating officer for Upside Foods, told TechCrunch.
However, she, like all others in the cultured-meat industry, believes it can be done. She thinks there will be a point in development where some kind of Moore’s law equivalent will kick in, and the industry will start seeing dramatic increases in production and achieve regulatory approval, which will increase the ways this product is brought to market, driving affordability and public acceptance.
GOVERNMENT FUNDING TO THE FUNDING RESCUE?
Before these companies can solve their technical problems, they must first overcome their funding ones. Lever VC managing partner Nick Cooney says investment into the category “has dropped considerably in the last year or so,” largely due to the general drop in VC funding overall. “But this sector is outpacing that drop,” Cooney said.
The problem is that (other than all things AI), VCs are currently avoiding funding tech that has enormous upfront capital costs, doesn’t currently produce much (if any) revenue (let alone profits), and may never prove to be viable businesses.
“VCs have largely made this shift from growth to profitability, and that’s wreaked havoc” on this industry, said Alex Frederick, senior emerging technology analyst at PitchBook. It’s difficult to be profitable when you don’t have a product to sell, he points out.
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA
Another funding option, Kaplan points out, is if governments are willing to kick in. Singapore, the first country to approve cultured meat for consumer consumption, is doing so. It’s committed $230 million to research of alternative proteins. And the Israel Innovation Authority has an $18 million fund for alternative protein startups and research. Tufts’ Kaplan believes we’ll see more countries follow.
Global public health organization showcases services for Canada’s growing and fast-changing food industry
PitchBook puts fundraising into cultivated meat at a double-digits decline over the past few years, Frederick said. The first quarter of 2024 was on pace to somewhat match the low pace of 2023 funding with 12 deals logged so far. Another 20 or so more potential deals are in the pipeline, he said.
NSF International in Canada recently launched a new website - www.nsfcanada.ca - to give Canada’s growing and complex food and beverage industry easy access to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s global services dedicated to food safety and quality.
At the start of 2024, there were around 200 cultured meat companies worldwide, according to PitchBook. But because most cultivated meat companies are startups, if they lose their ability to raise more venture funding, they tend to go out of business or be acquired. That’s the stage where Tuft’s Kaplan says the market sits now and, unfortunately, he has no prediction on when that will change, or how many will survive.
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.
One possible solution is for startups to outsource cell manufacturing, leasing equipment and production rather than each of them spending $100 million to $200 million on their own facilities, Frederick says. Venture capitalists have liked this approach and infused some funding into companies doing this, like Ark Biotech, Prolific Machines, Pow.bio, No Meat Factory and Planetary.
NSF International’s Canadian website provides information on the following services:
Certification & auditing: Third-party food safety audits and certifications, which are integral components of supplier selection and regulatory compliance. Accurate audits are the first step toward successful verification of a company’s food safety system, providing improved brand protection and customer confidence. Certifications and audits are available for animal and produce in the
“In a world that’s kind of struggling right now with food security, it will become how much can the government invest into this approach,” he said. “Just like the government has invested in battery technology and chips, they are going to have to do the same thing for cultivated meat if we are going to make this work.”
accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging, food microbiology and ISO standards. Training modalities include eLearning, on-site, customized and open enrolment.
He has reason to hope. He points to Mosa Meat’s $300,000 hamburger, saying that most companies today can make the same hamburger for $20.
‘MASSIVE’ ENGINEERING HURDLES
Additionally, the website includes information about management system registrations for the food, automotive, 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, submit a question or read an FAQ.
technical resources, expertise and insight for a wide range
Training and education: Training for the global food and beverage industry across the supply chain as an
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So does competitor Eat Just. Founder Josh Tetrick said his company has sold 10 times the amount of cultivated meat as the entire rest of the industry combined. “But that’s hardly any meat,” he told TechCrunch. “It’s in the single digit thousands of pounds, just to give you a sense of how small the volumes are, since only a handful of companies have regulatory approval.”
Eat Just and Upside Foods are two of the only companies to receive regulatory approval to sell this meat to consumers, with Eat Just being the first to sell in Singapore and then the United States. Tetrick is using this market advantage to focus on how to make millions of pounds at or below the cost of conventional meat. But “there are massive engineering and technological hurdles to be overcome,” he said.
For instance, his company is working on increasing cell densities, or edible cells produced per unit volume. That’s a key metric for manufacturers in order to produce the maximum amount of meat from each bioreactor.
There are a variety of bioreactor technologies, each with different approaches to cell density. Some use batch methods (fixed amount of cells and the growth food medium processed at one time); others use continuous methods (a steady stream of inputs/ outputs). Some stir the cells when adding fresh cell food; others suspend the cells and rotate the walls of the reactor.
Which of these technologies will be reliably best is still a matter of scientific research. Cultivated meat producer Believer Meats, for instance, showed in a 2023 study that cells grown in suspension can deliver densities of over 100 billion cells per liter — which it claims is over 17 times the industry standard. This increased process yields from 2% to 36% weight per volume of edible meat per run.
COSTLY CELL FOOD
Beyond the reactor engineering, another major hurdle is both the engineering and cost of the cell growth medium. Cell media typically includes a mixture of an energy source, like glucose, that includes amino acids, salts, vitamins, water and other components. Along with the hundreds of millions of dollars to build a facility, the cost to produce this media at scale is quite expensive. A 2022 study by the Department of Agricultural Economics at Oklahoma State University found that 1 kilogram (equal to about 2 pounds) of cellcultured meat was estimated to cost $63 to produce. That was compared to $6.17 per kilogram for beef.
https://www.beaconmetals.com
Wildtype, for instance, is making cultivated salmon. It started with a single cell and hasn’t needed to go back to an animal to obtain more cells for five years now, according to co-founder Aryé Elfenbein. It has now gained more understanding in how to best feed these cells to improve cell density.
“We’ve improved the yield of that process over time by understanding what nutrients these cells do best in,” Elfenbein said. “Raw fish is just extraordinarily complex, and all the aromatics and different components are something that we’ve aspired to create a more difficult, structured product from the beginning.”
The industry is also still working on methods to get the cells without taking them from animals. MarineXcell, for instance, is developing a way to produce embryonic stem-like cells, called induced pluripotent stem cells, or iPSCs, from crustacean cells — like lobster, shrimp and crab — using advanced nuclear reprogramming technologies.
The Israeli-based company says the technology, backed by Yissum, the Hebrew University of Jerusalem’s tech transfer company, and spearheaded by chief scientific officer Yossi Buganim, accelerates cell growth twice as fast as adult stem cells, but also maintains differentiation and cell growth potential over time, even under suboptimal conditions. Buganim’s lab was able to do this with bovine cells and is now applying similar techniques to crustaceans.
GETTING ALONG WITH THE GOVERNMENT
Founders say that the lack of regulatory policies is holding the industry back, too.
“It’s the main reason why quite a number of companies haven’t launched products yet,” Wildtype co-founder Justin Kolbeck said. “They’re on the journey during a multi-year regulatory review process, which is what consumers are watching. They want to make sure that the food regulators are taking their time looking under every stone, making sure that what we’re putting out on the market is as safe as possible.”
That said, no one thinks food safety is an area to skimp on — Wildtype’s conversations with the U.S. Food and Drug Administration were “constructive and positive iterative processes for a number of years now,” Kolbeck said. However, the company has also had conversations with potentially large customers interested in buying their products today. And Kolbeck doesn’t want to speculate when Wildtype’s regulatory approval will come.
Upside’s Chen said progress is being made. She believes regulators now have a better understanding about what cultivated meat is and more educated safety and regulatory concerns.
“When we got the first FDA approval, and others followed, it pretty much answered the question of, ‘Could this ever be approved and is it safe?’ Now our next-generation products need to go through a similar regulatory process, but that’s more of a ‘when,’ not an ‘if,’” she said.
PUBLIC PERCEPTION
Both Upside Foods and Eat Just tested out their cultivated chicken products in a few restaurants following regulatory approval. However, Upside’s Chen and Eat Just’s Tetrick say those pilots have ended until they can scale further.
One thing they learned: Wide consumer appeal remains a problem, with people calling it “Frankenfood,” “faux meat” or “lab-grown” meat — which technically it is — but those descriptions don’t sound appetizing. Florida has even already banned lab-grown meat.
“A challenge for all of us is how to help consumers fall in love with the category, understand what cultivated meat is, why we are behind it and what’s in it for them,” Chen said.
Tuft’s Kaplan believes that more education, more transparency by the industry and more peer-reviewed published papers from respected universities, will all help.
Chen expects the field to be very different even two years from now. She’s optimistic that consumers in a variety of geographies will be able to take their first bite of cultivated meat and “that it will be delicious.”
Lever VC’s Cooney also sees real progress being made. He points to Lever’s portfolio company Clever Carnivore, a cultivated meat company that has raised around $9 million. “From a price point reduction standpoint, they’ve found a way to produce meaningful pilot quantities at quite a reasonable capex,” Cooney said.
In the meantime, Eat Just’s approach overall will be what the company is doing currently in Singapore with launching its cultivated meat in retail. The product is 3% cultivated meat, while the other portion is plant-based proteins.
Tetrick admits it is significantly less than the 60+% Eat Just first launched in 2020. However, by developing meat at 3%, he believes the company can significantly drive the cost down, thus building more consumer experience and awareness around cultivated meat.
He has a plan to increase that 3% over the next three to five years, while at the same time working on a lowercost infrastructure, working on getting cell densities up and working on getting media costs down.
“We don’t think there’s anything magical about it,” Tetrick said. “We just have to do the necessary work across those different dimensions to get it done.”
For more information, visit www.techcrunch.com
CANADIAN BEEF INDUSTRY OVERCOMES CHALLENGES TO ACHIEVE MANY FIVE-YEAR GOALS
The Canadian beef industry has just released a Status Update of its 2020-24 National Beef Strategy outlining many goals attained while overcoming challenges in the industry over the past two years. The Strategy was developed by the Canadian beef industry to collectively capitalize on opportunities. The Strategy has provided guidance despite multiple supply and demand hurdles such as drought, feed shortages and post-pandemic recovery. The Status Update covers the final two years of the national strategy covering June 2022 through June 2024.
Today, the Canadian Beef Advisors, comprised of national beef organizations, are proud to confirm that several of the goals listed in the Strategy have been achieved including:
BEEF DEMAND
• Canada’s BSE negligible risk status was gained in May 2021, resulting in:
o Singapore removing all related restrictions.
o Japan fully expanded access to include processed beef products.
o Taiwan removed all remaining BSE restrictions.
• Canada's exports to Japan and Vietnam grew because of preferential access through the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP).
• The retail beef demand index in 2023 was the third strongest year since 1985.The wholesale beef demand index was the second highest year on record after 2015.
• The international beef demand index hit a new record high in 2023, with Canada exporting 496,917 tonnes of beef at $5.02 billion. This was the sixth year in a row of hitting record export values, reflecting the industry’s long-term investment in market access advocacy.
• Research by Public and Stakeholder Engagement (PSE) showed strong support for the industry and identified very few negative perceptions about production practices. This research guides the long-term strategy of PSE - to ultimately build public trust.
COMPETITIVENESS
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.
• Regulatory progress included the Canadian Food Inspection Agency (CFIA) approving feed additive Bovaer (3NOP) using a risk-based process that credited examinations of the product in other jurisdictions along with how it will be used.
CMB: And then you were attending the Canadian Beef conference in Calgary and you won.
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.
• Livestock Price Insurance has expanded into Eastern Canada after several years of advocacy.
• Foot-and-Mouth Disease (FMD) funding for the Vaccine Bank and Preparedness Plan has bolstered Canada’s biosecurity measures.
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?
• A commitment to exempt producers from the Under Used Housing Tax reporting requirements was secured, and the Advance Payments Program limit for the interest-free portion was reinstated to $250,000 from $100,000.
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
PRODUCTIVITY
• The 2021 NBSA results showed that emissions intensity from beef is down 15%, halfway to the 2030 goal.
• Since the beginning of 2022, 87 new projects have started with Beef Cattle Research Council (BCRC) funding, addressing industry priorities including animal health & welfare, antimicrobial use, resistance & alternatives (24 projects),forage & grassland productivity (16 projects), feed efficiency (8 projects), beef quality (1 project), food safety (6 projects) and environmental sustainability (8 projects). Fourteen projects address priorities in Knowledge and Technology Transfer.
• Progress on the four pillars of the Canadian Beef Improvement Network Development Plan include improved data collection, beta pilot projects, increased resources for analytics, and expanded efforts to support genetic literacy and tool adoption. Utilization of genetic data for effective analytics and decision-making has become a priority, emphasizing data access, ownership, and security.
CONNECTIVITY
• Advocacy campaigns like "Don’t Label My Beef" and "Say No to a Bad Deal" garnered public support and influenced policy decisions.
Despite many industry challenges, such as rising energy and input prices, and food inflation reducing consumer purchasing power, the Advisors are pleased with the successes. The focus post-pandemic was to re-engage with industry and at international fora as inperson events resumed. “The beef industry faces rising protectionist international trade measures. Ongoing efforts in international fora, such as the WTO and United Nations bodies, are essential to ensure Canadian voices are heard.” noted Nathan Phinney, President of the Canadian Cattle Association.
The Canadian Beef Advisors is renewing the National Beef Strategy for 2025-30, which will be released in January 2025. This update will be aligned with the 2030 goals focused. “There have been positive developments recently with investments into packing plants. Producers are looking forward to seeing the pull for cattle that comes from this.” Craig Lehr, BCRC and Chair of the Beef Advisors “Continued research to support producer competitiveness in a higher cost structure is key to future expansion.”
The Canadian Beef Advisors consist of elected leaders and senior staff of the seven national beef organizations responsible for policy, marketing, research and sustainability. They are a diverse group of experienced industry representatives, responsible for advancing the strategy with industry stakeholders, providing recommendations on future direction and reporting results against strategy objectives.
The National Beef Strategy January 2022 to June 2024 Status Update documents include the:
• Executive Summary
• Full Report
Learn more about how stakeholders are achieving a dynamic and profitable Canadian cattle and beef industry at www.beefstrategy.com.
The National Beef Strategy is a collaborative effort by Canadian national beef sector organizations including the Beef Cattle Research Council, Canadian Beef Breeds Council, Canada Beef, Canadian Cattle Association (and its’ provincial member associations), Canadian Meat Council, Canadian Roundtable for Sustainable Beef, and the National Cattle Feeders’ Association.
WALZ BRINGS AG BACKGROUND TO DEMOCRATIC TICKET
By Eric Bohl
Vice President Kamala Harris’s selection of Minnesota Governor Tim Walz adds significant agricultural policy credentials to this year’s Democratic Presidential ticket.
While a member of the U.S. House of Representatives, Walz represented a heavily agricultural district and served on the Agriculture Committee, voting in favor of the 2008 and 2014 farm bills. As governor, he oversees a state which ranks 2nd in hog production, 5th in total agricultural production, with both crop and livestock values ranking in the top seven.
From 2007 to 2019, Walz represented Minnesota’s 1st Congressional district, spanning the width of the southern portion of the state, including the entire border with Iowa. The district is now represented by Republican Brad Finstad, who also serves on the Agriculture Committee. Farming is central to the district, which ranks 9th out of 435 districts nationwide for the value of agricultural products sold. Production is almost evenly split between crops and livestock. The 1st district is 9th in crop value and 12th in livestock value, including a 2nd ranking for hogs and pigs.
Walz grew up in rural Nebraska and claims an affinity for farming and rural life. While Walz’s daughter Hope is a vegetarian, he received appreciation from farmers for joking that she could order turkey rather than a corn dog at the Minnesota State Fair. When Hope responded that turkey is also meat, he replied, “Not in Minnesota. Turkey’s special!”
As election day approaches, Walz will face difficult questions about how he plans to reconcile his more ag-friendly perspective with that of Harris. As a prosecutor and Attorney General in California, she took many positions perceived as opposed to traditional agriculture. Since launching her campaign, Harris has not yet taken vocal stands on agricultural issues.
BILL INTRODUCED TO RESTRAIN BIDEN ADMINISTRATION’S ENVIRONMENTAL JUSTICE INITIATIVES
Two Congressional leaders have introduced legislation to prohibit federal agencies from implementing “environmental justice” standards unless expressly directed by Congress. The Reducing Environmental Gamesmanship Act is authored by Congressional Western Caucus Chairman Dan Newhouse (R-Wash.) and Senate Western Caucus Chair Cynthia Lummis (R-Wyo.). The bill would also nullify two environmental justice executive orders signed by President Biden.
According to Newhouse and Lummis, the Biden administration has acted unilaterally to impose its political agenda on federal programs, requiring 40% of the funding from certain federal programs to go to “disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.” They feel these decisions are solely in Congress’s power and were made without legal authority.
“‘Environmental justice’ is another ploy by extreme activists to block traditional energy and infrastructure projects and force a green transition,” said Newhouse. “The reality is that if this agenda is put in place, the very low-income communities the left is claiming to help would be overburdened by higher energy costs. I’m proud to partner with Senator Lummis to overturn the Biden Administration’s environmental justice executive orders to help underserved communities and reclaim Congress’ legislative authority post-Chevron doctrine.”
In June, the Supreme Court struck down the longstanding Chevron doctrine, which required courts to defer to executive-branch agencies’ interpretations of ambiguous statutes. In the wake of this decision, members of Congress have unleashed a wave of legislation and demands to executive agencies seeking to reclaim Congressional power.
TRADE PROGRAM SEES LARGE FUNDING BOOST
A USDA program designed to increase international trade is releasing $300 million in its latest round of grants. The Regional Agricultural Promotion Program (RAPP) was established in October 2023 to help grow export markets for American agricultural products abroad. RAPP was created in response to a request from House and Senate Agriculture Committee leaders who recognized the need for more funding to encourage market development.
NEW SURREY SLAUGHTERHOUSE
RAPP plans to expend a total of $1.2 billion from the Commodity Credit Corporation to help diversify exports into new and emerging markets. The first $300 million tranche, released in May, was divided among 66 organizations with the ability to implement market development projects. Applications for the new round of funding must be submitted by Oct. 4, and awards will be announced by the end of 2024. As with the first round, $25 million will be dedicated to development of emerging African markets.
‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
A federally licensed beef processing facility is in the works in Surrey, BC.
“Access to international markets supports U.S. farmers at home and food security throughout the world,” said USDA Deputy Secretary Xochitl Torres Small. “USDA launched RAPP last year as part of the Biden-Harris Administration’s commitment to create more, new and better markets for U.S. producers and agribusinesses, and we’ve seen tremendous interest, culminating in more than a billion dollars in proposals for the first $300 million round of RAPP funding earlier this year. Given the importance of exports in supporting farm income and rural economic development, we’re delighted to be able to make an additional $300 million available this year.
“There’s a new building coming forward, a new abattoir, I think that’s the French pronunciation of slaughterhouse,” said Councillor Mike Starchuk. “So Surrey will have a newer facility with a better capacity so people will have the ability to not have to ship an animal to Alberta to have it processed. The applications have gone through the Agricultural and Food Sustainability Advisory Committee.”
The facility is proposed on a 25-acre property within the Agricultural Land Reserve at 5175 184th St. The planned 30,000-square foot abattoir in Cloverdale would process up to 100 head of cattle per day.
According to a city report, that would make it larger than any other processing facility in B.C.. But it would still be small by industry standards, compared to the largest meat processing plants in Alberta that process 3,000 heads of cattle per day.
The proposed facility would be fully enclosed and designed
ABOUT THE AUTHOR
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.
Eric Bohl is an agricultural policy leader with extensive experience on Capitol Hill. He served six years as Chief of Staff to Congressman Jason Smith (R-MO) and Congresswoman Vicky Hartzler (R-MO), and previously served as Legislative Director to Rep. Hartzler.
Article courtesy of National Hog Farmer - https://www. nationalhogfarmer.com/
“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.”
Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility
WTI ACHIEVES HIGHEST BRCGS RATING
World Technology Ingredients, Inc. (WTI) has undergone its first unannounced Brand Reputation through Compliance Global Standard (BRCGS) audit and achieved the AA+ rating, which acknowledges our exemplary food safety culture.
This success highlights WTI's commitment to maintaining high food safety and quality standards consistently.
This is the first year that WTI has had an unannounced BRC audit, allowing us the opportunity to earn a ranking of AA+. Since implementing the program in 2012, WTI has earned the highest scores of A and AA awarded for a planned audit.
“I am so proud of our team for ensuring that our high food safety and quality standards are upheld every day,” said Ralf Ludwig, WTI’s Owner and President. “Our products are known for their performance, quality and consistency and this would not be possible without the hard work and dedication of everyone on our team.”
“We have a strong food safety and quality culture and our performance in an unannounced audit is a testament to our dedication and commitment to maintaining highest possible food safety and quality standards every day,” said Jasdeep Saini, Ph.D., Vice President, Research and Technology for WTI.
About BRC Global Standard for Food Safety
The BRCGS Global Food Safety Standard has set the benchmark for nearly 25 years. Adopted by over 22,000 sites in more than 130 countries, the standard is accepted by 70% of the top 10 global retailers, 60% of the top 10 quick-service restaurants, and 50% of the top 25 manufacturers. Now in its 9th edition, the standard has constantly evolved to protect the consumer. It was the first standard to be GFSI benchmarked, as well as introduce food safety culture requirements, define food fraud, and reduce audit burden through additional modules. Developed with input from industry, it provides a framework to manage product safety, integrity, legality and quality, and the operational controls for these criteria in the food and food ingredient manufacturing, processing and packing industry. For more information, visit www.brcgs.com.
About World Technology Ingredients, Inc. (WTI)
WTI has been leading the functional food ingredient industry for over 30 years, producing naturally-derived and conventional ingredients that enhance the safety, preservation, and quality of food. WTI's innovations include the development of the naturally-derived vinegar antimicrobials category and the introduction of the first dried vinegar product, DV® (Patent U.S. 11,696,587, 12,041,945), to the market. The company operates globally, with its headquarters in Jefferson, GA, and a subsidiary in Germany.
For more information, visit www.wtiinc.com
TAXING SUCCESS
The effects of capital gains changes on Canadian agriculture
Like workers across the country, small business owners, including farmers, work hard throughout their lives to build up savings to eventually take a well-deserved retirement. Unlike the workers they employ, agribusiness owners don’t get to rely on a pension account funded partially by other people that builds those savings for them. Instead, these business owners invest their money and time into building a business they will eventually sell to retire, while funding the pension accounts of their employees.
This effort is no simple task. Agri-business owners assume all the risk in new and ongoing ventures, as it is their investment on the line if the business fails—a real possibility in the industry, given the vulnerability to adverse weather, labor shortages, and other common threats to the stability of Canadian agriculture. They do this with the understanding that they can benefit from the fruits of their labor, earning profit from the increased value of their business and its assets since they started it years ago.
Which is why some of the recently announced changes to capital gains taxation outlined in the federal government’s 2024 budget are so concerning. Under the new system proposed by the federal government in its last budget, capital gains made by small business owners above $250,000, along with the lifetime capital gains exemption (LCGE) and the Canada Entrepreneurs Incentive (CEI), will see 67% of their gains subject to taxation instead of the previous 50%. This will be a big bite for many in the agriculture sector looking to sell their land, equipment, or business itself.
It should be noted that these changes to capital gains taxation could actually help some agri-business owners keep more of their money when selling their assets. For example, the increase in the LCGE from $1 million to $1.25 or the aforementioned CEI under which only 33% of gains will be subject to taxation, lower than both the new and old rate. However, the latter excludes the sale of farm assets, is only available to founding investors, and has a long phase in period (increasing by $200,000 per year until 2034 when it reaches $2 million). The result is that many farms across the country will feel the sting of the higher 67% inclusion rate.
As a country we should be encouraging farmers to grow their agri-businesses to their fullest potential. However, these changes disincentivize agri-businesses from becoming larger and more innovative operations.
This effect is particularly relevant in the context of intergenerational wealth transfer. Canada is on the cusp of a massive transfer of potentially more than $2 trillion in business assets from the retiring older generation to younger generations. Canada needs enthusiastic younger farmers to pick up the torch to maintain a heathy agricultural industry. Limiting the potential success they could have in this sector will discourage many from entering a profession that involves a lot of hard work and dedication, but is essential to the wellbeing of Canadians.
Additionally, farmers are pointing out that the changes can limit the day-to-day profits younger agri-business owners earn for both themselves and to fund the retirement of their parents who they’ve taken over the family farm from. Multiple organizations, including the Grain Growers of Canada, Canadian Federation of Agriculture and Canadian Federation of Independent Business (CFIB) have all sounded the alarm to the federal government over the negative impact these changes will have on Canadian agriculture.
CFIB is calling on the federal government to abandon the increase in the general inclusion rate to 67%, or at least grandfather all existing gains for negatively impacted businesses so as not to pull the rug out from under agri-business owners who worked for years under the impression that they would be taxed at the older rate. Additionally, the Canadian Entrepreneurs Incentive, while a good idea, should have a shorter timeline for implementation and be available to nonfounders and extend to farm and fishing properties.
Successful agri-businesses should be supported, not punished for their growth. Click here to sign CFIB’s petition against the newly announced changes to capital gains taxation.
Bradlee Whidden 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 (4,900 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.
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