Agriculture in 2024: The Rising Cost of Doing Business
Agriculture in 2024: The Rising
December 2024
CMC and CPC Celebrate Landmark Canada-
Indonesia Economic Partnership Agreement
Cattle Industry Receives Federal Funding for Improvement Initiatives
5 6 8 12 14 16 18 20
Growth Opportunities in the ASEAN Market
Funding Support for Ontario’s Agritourism Sector
Cargill Cutting 8,000 Jobs, Profits Hit Lowest Levels in Nearly a Decade
One Million Meals and Counting: A&W Tackles
Food Waste and Hunger with Second Harvest Partners
Is Canada Sacrificing Consumer Trust for 'Cow Farts' and Climate Optics? Agriculture in 2024: The Rising Cost of Doing Business
December 2024 Volume 25 Number 12
PUBLISHER
Ray Blumenfeld ray@meatbusinesspro.com
CO-PUBLISHER
Deb Wilson deborah@meatbusinesspro.com
MANAGING EDITOR
Scott Taylor publishing@meatbusinesspro.com
DIGITAL MEDIA EDITOR
Cam Patterson
cam@meatbusinesspro.com
CONTRIBUTING WRITERS
Martha Roberts, Dr. Sylvain Charlebois, Juliette Nicolaÿ, Jack Roberts
CREATIVE DIRECTOR
Patrick Cairns
Meat Business Pro is published
12 times a year by We Communications West Inc
AGREEMENT
The Canadian Meat Council (CMC) and Canadian Pork Council (CPC) have announced their strong support for the successful conclusion of negotiations for the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA). This historic agreement paves the way for the Canadian meat industry to expand its reach into one of the fastest-growing markets in the Indo-Pacific region.
With a population of 279 million and a GDP of nearly $1.9 trillion, Indonesia offers immense potential for Canadian meat exporters. The CEPA will enhance market access while fostering sustainable and inclusive growth, aligning with the industry’s commitment to resilient supply chains and global trade excellence.
The agreement includes a robust Sanitary and Phytosanitary (SPS) chapter, providing transparency and ensuring SPS requirements do not become nontariff barriers. The CMC and CPC emphasize the importance of addressing halal certifications and food safety audits to enable commercially viable access to the Indonesian market.
The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher. Printed in Canada. ISSN 1715-6726
This milestone follows years of advocacy by the CMC, particularly since Canada’s exclusion from the Chinese market. The organization has worked diligently to secure meaningful trade opportunities in the Indo-Pacific, with CEO-led engagements in Jakarta since 2022.
The CMC and CPC remain committed to leveraging this agreement to benefit Canadian businesses and communities, showcasing Canadian meat quality on the global stage and contributing to a prosperous, dynamic pork and beef industry.
As an export-oriented industry and the largest manufacturing sector, the Canadian red meat industry:
• Contributes over $15 billion to the national economy.
• Supports over 194,000 jobs across the country.
• Exports to over 90 countries, showcasing Canadian quality on the global stage.
• Builds relations globally with offices in Japan and in China.
CATTLE INDUSTRY
RECEIVES FEDERAL FUNDING FOR IMPROVEMENT INITIATIVES
A number of cattle industry initiatives were announced during the recent Canadian Western Agribition, Canada’s largest livestock and beef cattle show, in Regina, Sask. Agriculture and Agri-Food Canada (AAFC) Minister Lawrence MacAulay highlighted an investment of roughly $4.5 million dollars for four projects to the Canadian Cattle Association (CCA).
“This federal investment is vital for our hardworking farmers, so they can continue raising first rate cattle while embracing practices that protect our land and livestock. I’m so pleased to support initiatives that promote quality and sustainability to ensure that Canadian beef remains a trusted choice for our customers around the world. Together, we’re building an even stronger future for the beef industry and Canadian agriculture”, stated Minister MacAulay.
Funding will be provided through the AgriAssurance Program – National Industry Association Component and the AgriCompetitiveness Program, two federal initiatives under the Sustainable Canadian Agricultural Partnership.
During the event, Minister MacAulay also participated in a roundtable discussion with cattle industry leaders. The event provided the opportunity to gather cattle industry stakeholders and to celebrate the welcome funding announcements.
The largest of the four projects relates to Canadian beef sustainability and the work of the Canadian Roundtable for Sustainable Beef (CRSB). CRSB Chair and Saskatchewan cattle producer Ryan Beierbach said of the funding, “The Canadian industry does more than talk sustainability. We measure what we do and how we can and are improving our environmental, social and economic impacts and benefits. This funding helps to do that measuring, and to improve the value chain bring certified sustainable beef to market.”
The environmental benefits cattle provide are not easy to show everyone. CCA’s Public and Stakeholder Engagement division developed a Guardians of the Grasslands game to take the short documentary into classrooms and to fairs and exhibitions to engage youth with what grazing means for landscape renewal and habitat for many species. PSE Chair Bob Lowe said “This funding helps extend industry’s voice into classrooms in new provinces and to trade shows across the country. We have a great story, but we don’t get to show it to everyone. This reaches a much wider audience.”
Another project involves improving Canada’s on farm beef producer program Verified Beef Production Plus (VBP+). VBP+ has modules on animal health, animal care and biosecurity aspects. All the aspects show the way to continued improvement in practices and sustainability on farms and ranches across Canada. The funding will help VBP+ continue evolving and reaching more producers.
The one other CCA project being funded is exploring technological improvements to forage insurance. The Grassland Production Index project is developing an interface for satellite-based information that aims to improve understanding of and delivery of forage insurance offerings.
Fulton added “Exploring new ways to help producers manage risks is key to improving industry. All these projects do that. Risk of consumers not understanding the benefits of cattle on the land, risks producers face from weather challenges and the risk of standing still on production practices or marketing undertakings. The support Minister MacAulay’s announced today shows his ministry’s support of the Canadian Cattle Association’s many steps to improve the outlook for Canadian cattle producers.”
GROWTH OPPORTUNITIES IN THE ASEAN MARKET
By Martha Roberts, Farm Credit Canada
As Canada looks to further diversify export markets and reduce the marketing risk that comes from an overreliance on the U.S., Asia looms large. China and India are Asian markets that have not been fully tapped yet but ongoing geopolitical tensions are making it difficult to develop more significant trade relations. Another option for Canadian exporters is Southeast Asia, a key area within the larger Indo-Pacific region. Canada’s exports there have grown across the three major categories of agriculture, food and fertilizer, but there’s even more growth that’s possible.
In this post, we identify some food products and ag commodities highlighted in recent research that are currently not reaching their export potential.
THE ASEAN MARKET IS ONE OF THE WORLD’S LARGEST
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization with 10 member states: Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
It’s a region that, in 2023, had the third-largest population in the world at around 679 million - and it’s growing. If the ASEAN were one economy, it would be the fifth largest in the world with a combined nominal Gross Domestic Product (GDP) of US$3.8 trillion in 2023. ASEAN is one of the world’s fastest-growing economic regions, with real GDP projected by the IMF to grow 4.6% in 2024 and 4.7% next year.
As a group of countries, the 10 member states of ASEAN represented Canada’s fourth-largest merchandise trading partner in 2023. The bulk of that trade is to the six largest countries within the region (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam), for whom food exports are, by far, the smallest of the three export categories (Figure 1).
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA
The falling volumes lie in stark contrast to fertilizer export values over the same time period. With noted, serious supply chain issues hampering global fertilizer trade during and just after COVID, per unit values of our fertilizer exports grew from $93/tonne in 2018 to a high of $486/tonne in 2022. In 2023, they scaled back to $216/tonne, a big YoY drop but still the highest values in the last six years.
Global public health organization showcases services for Canada’s growing and fast-changing food industry
This replicates a trend found among Canada’s major export markets outside the U.S. Since 2018, food export volumes have nonetheless grown at an average annual rate of 8.1%, suggesting the market holds promise for further development. Existing growth has come so far without the aid of a trade agreement which, nonetheless, is in the works as of 2021. As an added focus, Canada’s broader, more encompassing IndoPacific Strategy (IPS) was launched in 2022, guiding Canada’s diplomatic, trade, defence, security, and development assistance approach to the region for the next decade and potentially boosting Canadian exports further.
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.
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.
NSF International’s Canadian website provides information on the following services:
Agriculture export volumes have also risen since 2018, growing at an average annual rate of 7.8%. The largest factor underlying the overall drop in our exports to the ASEAN region since 2018 is in the decline in fertilizer exports. Between 2018 and 2023, they fell at an average annual rate of 11.2%. By far the largest category of exports, they’ve been a major influence on our overall trade performance.
Figure 1: Historically, fertilizer tops the list of Canadian agrifood exports to ASEAN
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 agriculture industry, GFSI certification and management system registration.
product evaluation.
Source: Canadian International Merchandise Trade
Training and education: Training for the global food and beverage industry across the supply chain as an
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.
Continued on page 10
https://www.yesgroup.ca
The principal challenge for ASEAN countries will be to guide the development of production practices that can accommodate extreme weather events, worsening climactic conditions and disease outbreaks. As the region works to manage the increasing frequency and strength of natural disasters and difficulties with transitioning to a low-carbon economy, there will be opportunities for Canada to grow its exports of R&D (new technology such as drought-resistance cultivars, etc.), and agriculture, fertilizer and food products and commodities.
Westernized food options are also becoming more common in the region. Beef consumption (measured as a total of imports and production), for one, is on the rise (Figure 2) and, with limited capacity to produce enough cattle needed to meet that consumption, beef imports have become more important. For the 2025/26 marketing year, the USDA forecasts ASEAN imports totaling 626,000 metric tons (MT), an impressive 60% leap from 2015/16. Overall volumes are still small of course: for perspective, China is expected to import 3.8 million MT of beef in the same period. But, as with China, volumes are growing.
Figure 2: Growth of ASEAN beef/veal imports outpace growth of domestic production
As the ASEAN economies continue to develop, several sociocultural characteristics of the region serve as possible hurdles for Canadian exporters to overcome. Almost 90% of Indonesia is Muslim, which limits Canadian pork exports to that country. In fact, just over four in ten of the ASEAN population is Muslim (mostly Sunni), followed by Buddhism (18%) and Christianity (17%).
But pork remains an important source of animal protein. The good news for Canadian pork producers is that, during the pandemic, ASEAN production fell slightly while domestic consumption was stable. The USDA has forecasted both to grow over 2% in each of the following years. The impressive growth though lies in the region’s imports. The 2024/25 year’s imports are forecast by the USDA to grow 8.4% and the 2025/26 year's growth is expected to grow a further 3.2%.
Rice is a food staple in Southeast Asia, as it is throughout the broader Asia. But wheat, Canada’s largest ag export, is another commodity that’s gaining traction in Asia (Figure 3). Overall consumption has grown at an average annual rate of 4.6% per year over the last decade, but within that, wheat consumption as feed has grown even faster (9.8% per year average). The solid growth in the use of wheat as feed suggests the growing importance of animal-based sources of protein in daily food consumption.
Figure 3: Growth of feed consumption as percentage of overall wheat consumption shows ASEAN focus on red meat sector
THE POTENTIAL IS THERE FOR CANADA TO INCREASE MARKET SHARE
There are measurable opportunities for Canada to increase its market share. According to the International Trade Centre (ITC), Canada is currently exporting below its potential to the ASEAN region. The ITC estimates “potential exports” as a function of supply capacities in Canada, demand conditions in the target market, and bilateral linkages between Canada and the target country. “Unrealized potential” can be simply the difference between potential and actual exports, but it can also reflect gaps in individual countries’ demand for goods not captured in the measure of potential for the entire region. Thus, unrealized potential can be greater than the difference between potential and actual exports.
According to the ITC, Canada is currently underperforming in our exports of potassium chloride, a high-value commodity, to Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. We are also exporting less wheat than we could have to Vietnam and the Philippines, and lower volumes of swine cuts to countries like Singapore and Vietnam. The table below shows the top 15 agrifood products for which Canada has unrealized export potential to the ASEAN region –cumulatively amounts to $1.6 billion.
Amid geopolitical uncertainties that threaten to derail global trade, Canadian exporters would do well to consider their marketing efforts in the growing ASEAN market. There are opportunities to capitalize on the region’s increasing appetite for agrifood products and commodities, particularly in countries where our exports are below what they could be. As we showed in this report, there is indeed more than $1.6 billion of unrealized export potential.
For more information, visit Farm Credit Canada at https:// www.fcc-fac.ca/
BOTTOM LINE
FUNDING SUPPORT FOR ONTARIO’S AGRITOURISM SECTOR
With the support of the provincial government, Ontario’s leading agritourism association is taking steps to grow the sector across Ontario.
Agritourism Ontario (formerly Farm Fresh Ontario) is heading into 2025 with a new name and look that is more reflective of what the association does. It is also taking on some big projects thanks to the support of Ontario’s Ministry of Agriculture, Food and Agribusiness.
“Agritourism is such a dynamic and growing part of Ontario’s nearly $51 billion agri-food sector. There are so many engaging, energizing, and fun experiences open to people across our province that reconnects them to their land and soil and inspires them to choose world-class, locally grown food products,” said Rob Flack, Minister of Agriculture, Food and Agribusiness.
“The work you do plays such a critical role in building up the momentum we’re seeing across our province’s agritourism sector and communicates Ontario’s amazing agri-food story, which employs over 871,000 men and women.”
The nearly $345,000 in funding over three years will help Agritourism Ontario (AO) develop a first-of-its-kind app that will more easily connect families to farms. The funds will also help develop an economic growth study that will for the first time, give a detailed and accurate analysis of where agritourism is and its potential for growth in the province. Funds will also support a marketing strategy and farm visit awareness campaign as well as supporting agritourism operators through professional development workshops, webinars and events for AO members.
Agritourism Ontario’s board chair Darlene Downey of Downey’s Farm in Caledon, said the funding is crucial to help the association grow the sector. “We are very grateful to Minister Flack for his support. There is so much growth potential in our sector and this funding will go a long way in helping us reach that potential.”
“We welcome families onto our property and connect them with agriculture,” Downey explained. “Children have fun while learning about local food and products. It’s a special connection and through this extraordinary support we can continue to grow and showcase Ontario agriculture.”
With nearly 300 members plus associate members, Agritourism Ontario (AO) is the only association in Ontario solely dedicated to supporting farmers in agritourism and advocating for the sector. AO helps its members improve profitability through a variety of channels including marketing, education, promotion, professional development, and advocacy.
For more information, visit https://agritourismontario. com/
https://www.beaconmetals.com
CARGILL CUTTING 8,000 JOBS, PROFITS HIT LOWEST LEVELS IN NEARLY A DECADE
Cargill, the largest privately held company in the U.S., is reducing its workforce by approximately 5%, or roughly 8,200 positions out of the company’s 164,000 employees worldwide. This decision follows missed profit targets and forms part of the company’s broader 2030 strategy.
A company representative has confirmed that Cargill employs over 8,000 people across Canada but has declined to comment on how many Canadians will be affected.
One of its most high-profile Canadian operations is the meat-processing plant near High River, Alberta, which employs roughly 2,200 workers and processes about 4,700 head of cattle per day, according to CBC News.
KEY DETAILS
TIMELINE: Most of the job cuts will occur this year.
GLOBAL FOCUS: The company will streamline operations, consolidate roles, and reduce redundancies.
FRONTLINE IMPACT: Cargill president and CEO Brian Sikes stated that the company aims to minimize the impact on operations and frontline teams.
UNION RESPONSE: The president of UFCW Local 401, Thomas Hesse, whose union represents nearly 2,500 workers at two Cargill plants in High River and Calgary, said the cuts appear unlikely to affect Alberta operations. The union is investigating and strongly opposes any layoffs, questioning their necessity.
OFFICIAL STATEMENTS AND CONTEXT
SIMPLIFYING OPERATIONS: CEO Brian Sikes noted in an internal memo, reviewed by Reuters, that less than onethird of Cargill’s businesses met their earnings goals in the last fiscal year.
* He emphasized the need for structural changes to achieve cost efficiencies, including consolidating five business units into three.
* “We have to simplify and streamline our operations, improve the speed and efficiency of our work, and more competitively manage our costs and capital.”
* Cargill can be the world’s most consequential food and agriculture company. And before the end of this decade, we will,” Sikes emphasized.
UNION CONCERNS: Hesse criticized the layoffs, calling for greater transparency and questioning their justification given Cargill’s continued profitability.
* “Everyone knows that it’s an incredibly profitable company,” Hesse said in an interview. “I don’t believe they’re saying they’re not profitable. I believe they’re saying that they’re making less profit … those are two very different statements.”
* Hesse also noted that beef prices have risen significantly in Canada, with ground beef costing $12.96 per kilogram in September 2024, compared to $11.69 the previous year. Striploin cuts jumped to $32.04 per kilogram, up from $27.67 in 2023 and $18.13 in 2019.
GLOBAL CROP SURPLUS AND INDUSTRY
TRENDS: Depressed prices for corn and soybeans, coupled with the smallest U.S. cattle herd in seven decades, have strained margins in Cargill’s beef processing operations.
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.
* Agriculture in 2024: The Rising Cost of Doing Business Despite reporting $2.48 billion in profit for the fiscal year ending May 2024, the figure marks a sharp decline from its record $6.7 billion profit in 202122.
* High River’s History: Cargill’s High River plant made headlines during a COVID-19 outbreak in 2020, with nearly 950 employees testing positive.
EMPLOYEE SUPPORT AND NEXT STEPS
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.
CMB: And then you were attending the Canadian Beef conference in Calgary and you won.
Non-unionized employees in Canada affected by layoffs may be eligible for severance pay, which is determined by several factors, including role, tenure, and age.
KEY FACTS ABOUT SEVERANCE:
SEVERANCE PAY: Can include up to 24 months’ pay in some cases, depending on specific circumstances.
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.
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?
COMPONENTS: Severance packages may include salary, bonuses, commissions, and other forms of compensation. Use our free Severance Pay Calculator to estimate what your package may look like.
DEADLINES: Employees have up to two years from their termination date to review and negotiate severance entitlements.
NEED GUIDANCE? Contact Samfiru Tuma rkin LLP for a severance review and expert advice.
Employees affected by the layoffs at Cargill can find additional details about their rights and options in our Cargill Layoffs: Severance Pay for Employees resource.
Article courtesy of Samfiru Tumarkin LLPhttps://stlawyers.ca/
DF: Absolutely. We’ve gotten a lot of good press highlighting the island cattle industry. I’m positive you’ll see more farms in our neck of the woods nominated next year. And I have to give the Canadian Cattleman’s Association recognition for choosing a farm from Prince Edward Island. We are small players in the national beef industry and I think it was a real credit to their organization to recognize us. They treated all the nominees royally and it was a real class act. It was a wonderful experience. https://www.yesgroiup.ca
ONE MILLION MEALS AND COUNTING: A&W TACKLES FOOD WASTE AND HUNGER WITH SECOND HARVEST PARTNERSHIP
A&W Canada has announced a national expansion of their in-restaurant food rescue program in partnership with Second Harvest, Canada’s largest food rescue organization.
To date, 441 A&W Restaurants across Canada have joined the Second Harvest Food Rescue App. More restaurants are expected to join soon, enabling community groups such as food banks, shelters, meal programs and community centres to pick up surplus food donations from restaurants. These groups then transform A&W’s protein and produce into nourishing meals such as soups, salads, and wraps—for those facing food insecurity. Through food donations from A&W’s supply chain and restaurants, over 1.24 million meals have been provided for communities in need.
A&W and Second Harvest’s partnership reflects a shared commitment to environmental sustainability and community support. A report by Second Harvest indicates that nearly 42% of all the food wasted in Canada could be rescued to help combat hunger among the 8.7 million Canadians experiencing food insecurity. To date, A&W’s food rescue efforts with Second Harvest have prevented 4.8 million pounds of greenhouse gases from entering the atmosphere.
A&W’s partnership with Second Harvest began in 2021, with 81 participating restaurants. The initiative has organically grown, with more A&W Restaurants joining the program to support their local communities. “Our restaurants are able to thrive because of the support from the community. Their teams have found this program incredibly rewarding, to see how their food rescue efforts can give back,” says Susan Senecal, CEO of A&W Canada. “As a restaurant, our core purpose is to feed people, and this program allows us to extend that to those facing hunger.” To date, A&W’s food rescue efforts have donated meals to 987 non-profit organizations across Canada.
“Donating surplus edible food is not only the right thing to do—it’s also an environmentally-sound choice. Distributing food to those in need reduces food-related greenhouse gas emissions by 12 times compared to composting, and 30 times compared to upcycling. Partnerships with major restaurants like A&W, who generously donate their surplus food, are invaluable in our mission to combat food waste and food insecurity in Canada,” says Lori Nikkel, CEO of Second Harvest.
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility
By Amy Reid, Peace Arch News
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 it processed. The applications have gone through the 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.
“At A&W, we’ve been committed to achieving zerowaste efforts operationally, and minimizing food waste is a key part of that commitment,” says Angela Griffiths, Vice President of Food Safety and Brand Integrity, who leads A&W’s zero-waste initiatives. “Our office and restaurants are proud to partner with Second Harvest to ensure that our surplus food directly benefits those in need, especially during these challenging economic times.”
For more information, visit aw.ca and www. secondharvest.ca
“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.”
small by industry standards, compared to the largest meat
The proposed facility would be fully enclosed and designed
IS CANADA SACRIFICING CONSUMER TRUST FOR 'COW FARTS' AND CLIMATE OPTICS?
By Dr. Sylvain Charlebois
Canada’s recent approval of Bovaer, a methanereducing feed additive for cattle and dairy cows, has been hailed as a major climate change milestone.
At its core, this innovation aims to cut down methane emissions — essentially reducing “cow farts.” While the environmental benefits may be commendable, the decision raises serious concerns about transparency, food quality, and whether Canada has learned from past controversies in the agri-food sector.
Mismanaging this opportunity could cost the industry dearly.
Canada’s food system has long been scrutinized for introducing practices and ingredients that, while technically safe, often leave consumers feeling uninformed or misled. The approval of Bovaer demonstrates the federal government’s commitment to reducing greenhouse gas emissions — an essential objective — but risks repeating a pattern where wellintentioned innovations trigger backlash due to a lack of openness.
Consider the infamous Buttergate scandal. The dairy industry’s quiet addition of palmite, a palm oil derivative, to cattle feed altered the composition of Canadian butter, making it harder at room temperature. While the change was justified as beneficial for cows and the sector, consumers were blindsided. The uproar wasn’t just about harder butter — it was about trust. Transparency was sacrificed, and the dairy industry faced widespread criticism.
From the revelation of wood pulp in grated Parmesan cheese to the mislabelling of seafood and the longoverdue removal of trans fats in processed foods, Canada’s food system has a history of springing surprises on consumers. The introduction of genetically modified organisms (GMOs) into the food supply ignited similar concerns about consumer rights and transparency. Unless stakeholders address these issues proactively, innovations like Bovaer risk deepening consumer skepticism.
Historically, crises in Canada’s food system have shown the dangers of prioritizing expediency over engagement. The Mad Cow disease outbreak, linked to questionable feed practices, devastated public trust and global perceptions of Canadian agriculture. The lesson was clear: Transparency and rigorous oversight are nonnegotiable.
Today, the narrative has shifted to the environment. Cattle undeniably play a role in ecosystems, particularly in pasture-based farming, which supports natural carbon cycles. Quick fixes like feed additives to reduce methane emissions may achieve short-term goals but risk altering natural systems, raising concerns about long-term effects on animal health, food quality, and consumer confidence.
Canadian consumers are increasingly discerning. They demand not just assurances of safety but clarity about how their food is produced and its integrity. Oversimplified solutions that prioritize environmental goals over holistic considerations often alienate producers and consumers alike, threatening the stability of Canada’s food system.
Compounding this issue is a lack of agricultural literacy among policymakers and environmental advocates. Farming is a complex interplay of sustainability, tradition and practicality. Simplistic approaches to emissions reduction risk alienating producers and undermining consumer trust.
Reports indicate that most Canadian cattle and dairy producers do not currently use Bovaer and have no immediate plans to adopt it, with commercial supplies still limited. However, the absence of clear communication about this reality risks tarnishing the entire sector’s reputation. Public perception often becomes reality, and a lack of transparency could have long-lasting consequences for industries reliant on consumer confidence.
To mitigate these risks, regulators like the Canadian Food Inspection Agency (CFIA) must expand their mandate beyond safety assessments. They must evaluate the broader implications of innovations like Bovaer on food quality, consumer trust, and market dynamics. Meanwhile, the beef and dairy industries must take a proactive approach to consumer engagement, offering transparency about production practices and any potential changes to food products.
Approving Bovaer without robust public discourse was a missed opportunity — one that reflects a recurring pattern in Canada’s agri-food sector. However, sustainability and tradition need not be mutually exclusive. By embracing transparency and respecting the principles of nature, the industry can align environmental goals with consumer expectations.
Reducing methane emissions is an important step for agriculture, but it cannot come at the expense of informed consumer choice or the integrity of Canada’s food supply. Transparency must take centre stage, ensuring that the industry evolves without losing the trust of the people it serves.
Dr. Sylvain Charlebois is the Director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast.
AGRICULTURE IN 2024: THE RISING COST OF DOING BUSINESS
While reflecting on 2024, many agri-businesses can agree that every single line of their budget has increased. This is also something reported by the Canadian Federation of Independent Business (CFIB) Business Barometer which highlights small businesses’ main cost constraints monthly. According to its 2024 Retrospective, agri-businesses main costs were fuel costs (75%), tax and regulatory costs (73%), product input costs (69%), and insurance costs (66%). All these elements crucial to agri-business operations are more and more expensive. That is why CFIB has worked to encourage the government to reduce costs for small businesses where it has the power to do so.
For example, when the federal government did not keep its promise to return to small businesses their money collected from the carbon tax, CFIB called the government out on it. CFIB undertook a big campaign. After sending several letters, scheduling numerous meetings, and having 23k business owners sign our petition, the federal government announced it would return $2.5 billion in carbon tax rebates to small businesses by December 2024. While this CFIB victory will not significantly alleviate fuel and tax costs on small businesses, it does get to businesses their share of the promised rebates.
CFIB has also been advocating to pass Bill C-234 An Act to amend the Greenhouse Gas Pollution Pricing Act in its original form. Initially, Bill C-234, would have exempted many farm activities from the federal carbon tax applied on propane and natural gas, supporting Canada’s food producers. However, the Senate proposed amendments that would limit the positive impacts of the Bill. According to a CFIB survey, 81% of agri-businesses who have an opinion on the issue do not support these amendments. Overall, however, CFIB continues to call on government to eliminate the price on Carbon – it would go a long way in reducing the costs of doing business.
The costs of regulations is also a huge burden on small businesses budget, $11 billion a year to be precise. Eliminating red tape would free up 205 million hours, boost productivity, improve affordability, and create a landscape where small businesses can thrive. That’s why every year CFIB organizes a Red Tape Awareness Week which sheds light on confusing rules and regulations, administrative obstacles, and excessive paper burden Canadian businesses face every day. Throughout the year, CFIB also strives to reduce the administrative burden on small businesses. For example, in 2023, CFIB raised concerns with the federal government about the red tape associated with the Underused Housing Tax (UHT). As a result of our efforts, last Fall, the federal government extended the 2022 UHT deadline, eased the UHT reporting requirements for certain business owners and reduced the penalty fees.
While the top costs on the list may not be surprising, seeing insurance costs as the fourth-largest constraint might seem unusual. However, insurance expenses have been steadily increasing in recent years. According to CFIB’s recent report, Insuring Main Street: An analysis of Canada’s small business insurance market, the vast majority of agri-businesses carry the three most costly types of insurance: 93% have general commercial liability insurance, 90% have commercial property insurance, and 85% hold commercial auto insurance. Over the past year, it has been reported that approximately 40% of agri-businesses have faced significant premium hikes of 10% or more for each type of insurance. With most agri-businesses relying on just three insurance providers, it’s no surprise dissatisfaction levels are high!
To address the insurance challenges faced by agribusinesses, CFIB recommends eliminating the Insurance Premium Tax (IPT) and Retail Sales Tax (RST) on all insurance products for small businesses. The government could also streamline the regulatory environment to help existing insurers provide more competitive products.
By working to reduce taxes and regulations, CFIB has also helped lower input costs that are directly influenced by these factors. It goes without saying that CFIB will continue advocating for cost reductions in 2025 to support the growth and success of your agribusiness.
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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