Âť The science of food and beverage SPRING 2020
Surplus Food Rescue Program launched to support local initiatives
COVID-19 hits the Canadian food industry
NEWS BITES
Editor's Note Keeping up with the waves of change caused by COVID-19 could be a full-time job – but one that few people would want. The impact of the virus has been eye-opening, especially for those who rarely considered the issue of food security. Typical concerns such as extreme weather and crop disease usually occur on a regional or sometimes national scale; instead, the entire world was forced to confront its collective vulnerabilities, especially as essential services and the international supply Popi Bowman chain were strained by the sudden halt of life as we knew it. The reality hit home in mid-March as MANAGING EDITOR grocery stores in Canada, and throughout the world, showed that public awareness had shifted to a sense of panic. Staples such as flour, pasta and beans were sold out. Many people were surprised to discover how quickly our way of life could be disrupted. Now, hopefully the worst is behind us, but what COVID-19 has taught many people (among many things) is they should never take food for granted. The upside is a new wave of interest in community gardens and other food security programs that will ensure we can weather the next storm, virus or otherwise. Watch for our next issue, with an expanded Canadian Food Business section that will look into the current state of the industry, and how it is rapidly changing with our changing world.
Plant protein production gets a big boost A recent survey of 1,505 Canadians by Angus Reid and Dalhousie University reveals that, during the pandemic lockdown:
83%
ordered food from their favourite restaurant: 64 percent ordered food at least every two weeks, and about 29 percent ordered from restaurants at least once a week
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In June, Prime Minister Justin Trudeau announced almost $100 million of funding towards the new Winnipeg facility for Merit Functional Foods, a company that was established last year in a joint venture by Burcon NutraScience and three veteran food industry executives. The new company’s high-tech, 94,000-sq.ft. facility is expected to be functional by the end of 2020, becoming the first and only commercial operation that is capable of producing food-grade canola and pea protein. Merit Functional Foods and Burcon NutraScience announced an agreement with Nestlé in January this year, indicating that Merit would supply novel proteins for use in plant-based foods and beverages. Burcon uses a proprietary, patented extraction and purification technology to produce plant protein, backed by more than two decades of development; the company holds more than 270 patents. For more information about these companies, visit meritfoods.com and burcon.ca.
81%
of respondents between the ages of 18 to 34 years old ordered from restaurants, the highest rate among age groups Depending on the province, a range of
37% 56% (Saskatchewan) to
(B.C.) percent of respondents intend to avoid restaurants due to public health concerns
IN CASE YOU MISSED IT: Featured in the recent Canadian Food Business enewsletter (visit the website to sign up) Heart & Stroke predicts that over the next 25 years, sugary drink consumption in Canada will be responsible for: • More than four million cases of overweight and obesity • Up to 1 million cases of type 2 diabetes • 300,000 Canadians with ischemic heart disease • 100,000 cases of cancer • Almost 40,000 strokes • Over 63,000 deaths
NEWS BITES
Surplus Food Rescue Program launched to support local initiatives
Responsible agriculture meets innovative greenhouse technology
Prime Minister Justin Trudeau visiting Lufa Farms Anjou, 2017
Lufa Farms is set to unveil the world’s largest urban rooftop farm – the size of three football fields. Located in St-Laurent near Montreal, the greenhouse is Lufa’s fourth commercial rooftop farm. Built on an existing industrial building, the greenhouse features double-paned glass, two energy-saving screens, on-site composting and a process for capturing rainwater in a closed-loop irrigation system. “This rooftop greenhouse will double our growing capacity and allow us to feed two percent of Montreal with fresh, local vegetables. It’s an unbelievable step forward for hyper-local, sustainable urban farming,” says Mohamed Hage, cofounder and CEO.
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• Over $77 million in funding for the Emergency Processing COVID-19 caused significant disruptions to areas of Canada’s Fund (EPF), whose objectives include helping companies food system, as it forced the near closure of the restaurant and implement changes to safeguard the health and safety of hospitality industry in Canada and the United States. Some workers and their families producers across Canada are left with surpluses of quality • $100 million for food banks and local food organizations to food, while increased demand from grocery stores alone is help Canadians experiencing food insecurity not expected to clear the inventory before it spoils. At the • $25 million through Nutrition North to ensure food security same time, the pandemic has increased the demand for food for Canada’s most vulnerable from food banks and other food security organizations in • Travel exemptions for all temporary foreign workers, communities across Canada. including seasonal agricultural workers and fish/seafood To help remedy this food supply crisis, the Honourable workers Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, • $50 million in funding for the Mandatory Isolation Support recently announced the $50 million Surplus Food Rescue Program for Temporary Foreign Workers to help cover the Program, which aims to move surplus food commodities such incremental costs associated with the mandatory 14-day as potatoes, seafood and meat through the food system as isolation period imposed on visitors to Canada. efficiently as possible to help vulnerable Canadians. Eligible applicants for program funding include for-profit and not-for-profit organizations (industry groups, processors, distributors, food serving agencies, regional and municipal governments and agencies, including schools or school boards) that can demonstrate an ability to handle the full logistical requirements for acquiring, processing, transporting and ensuring shelf-life stability of surplus commodities and delivery to organizations serving vulnerable populations. Applications are being accepted until July 31 or until all funds are committed, whichever “The Government of Canada is working around the comes first; first priority will be given clock to respond to the impacts of the COVID-19 on to products that require immediate farmers, agri-food businesses and all Canadians. The attention due to their high perishability pandemic has caused significant fluctuations in food (potatoes, fresh fish, eggs, etc.). For more information, visit: agr.gc.ca. demand and supply, resulting in surplus food across This funding announcement builds on our country. We are working hard to help manage other measures the federal government and redirect this surplus food to those who need it recently introduced to keep Canada’s during this difficult time.” agri-workforce strong, including: – The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
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NEWS BITES
Avocado-based nutraceutical comes to market
Fungal pathogens pose great risk to crops
Metavo is a new product created by SP Nutraceuticals and researcher Dr. Paul Spagnuolo, in collaboration with a team of nutritional scientists from the University of Guelph, who identified and isolated a powerful bioactive in avocados. Avocatin B (AvoB) helps maintain normal blood glucose levels and supports healthy metabolism. It is particularly beneficial for those who are looking to manage blood sugar levels, and those who are pre-diabetic, obese or overweight. “AvoB has been scientifically proven to target a root cause of ineffective metabolism which leads to high blood sugar,” says Dr. Spagnuolo. Metavo is available in convenient onthe-go powder sachets and soon-to-be-released capsules. Each lot of avocado powder used to formulate Metavo is tested to ensure a standardized dose of AvoB. metavo.com. Dr. Will Kay (co-author) with Prof. Sarah Gurr, establishing banana plants for the group's work at Exeter on Panama disease
Dr. Spagnuolo in the lab CANADIAN FOOD BUSINESS SPRING 2020
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Research at the University of Exeter in the U.K. has a strong emphasis on understanding fungal plant disease and in developing new ways to protect crops. In an article published by Nature Food this spring, a consortium of world-leading Exeter-based fungal researchers, led by Professor Sarah Gurr and Dr. Helen Fones (UKRI Fellow), has merged their expertise to highlight the threat of fungal disease for food security. “Over the past centuries, crop diseases have led to the starvation of the people, the ruination of economies and the downfall of governments,” Professor Gurr says. “Today, the threat to plants of fungal infection outstrips that posed by bacterial and viral diseases combined. Indeed, fungal and oomycete diseases have been increasing in severity and … now pose a very serious threat to global food security.”
World Economic Forum: Class of 2020 Young Scientists In 2008, the World Economic Forum (WEF) created the Young Scientists Community, to engage leaders with science and the role it plays in society. This year, WEF recognized 25 exceptional researchers from 14 countries, for being at the forefront of scientific discovery. One Canadian was included: Jennifer Ronholm, an assistant professor at McGill University, is working to strengthen the microbiome of agricultural animals to resist infections in the absence of antibiotics, with the aim of reducing the spread of antimicrobial resistance. She is among 14 women recognized by the WEF in this year's cohort.
FEATURE
COVID-19 hits the Canadian food industry
AS
the coronavirus pandemic swept across the world in the first few months of 2020, an unprecedented shutdown impacted shops, restaurants and agricultural businesses, along with transport. By March 21, every province in Canada was called into a state of emergency. During this period, restaurants were ordered to pivot to takeout and delivery only or close completely, leaving business owners scrambling for survival and thousands of restaurant workers facing unemployment. Grocery stores quickly went into the first phase of pandemic pandemonium: shelves were cleared of toilet paper and hand sanitizer, while shoppers wandered aisles filling their carts, unsure of how long to stockpile for. While the country slowly reopens, shops are seeing shortages of yeast and flour, but not much more. The food supply chain has proven itself remarkably resilient. Many restaurants kept themselves afloat through contactless delivery and curbside pickup, some even adding pantry essentials and delivery food boxes to their offerings. Society has settled into a “new normal,� but uncertainty remains close ahead of us: The agricultural sector is reeling from a shortage of temporary foreign workers, while outbreaks are impacting both large-scale meat-packing facilities and small family greenhouse operators. Across the country, the unemployment rate continues to balloon while the death toll increases daily, and healthcare workers continue to bravely plant themselves in the line of fire and are paying with their lives. Moreover, the larger question of just how much society will have changed from this global pandemic remains unanswerable.
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By Jessica Wei
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FEATURE
As the lockdowns continued to stretch into May, restaurants had to think creatively.
Supply
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According to 2017 figures from Statistics Canada, the average Canadian household spent around $2,593 (or just over 30 percent) of its annual food budget for meals outside the home, in restaurants, cafeterias and cafes. As nationwide lockdowns have decimated the restaurant industry, that money was rerouted back to the grocery stores, which were scrambling to keep up with demand – particularly in that early period, when consumers were panic-buying across the country. “Holy cow, the supply chains had to adapt fast to restaurants and cafeterias and food courts closing, and all that extra food being purchased through grocery stores,” says Evan Fraser, the director of the Arrell Food Institute and Canada Research Chair in Global Food Security. “And it has revealed that actually our dining habits are very different at grocery stores than in restaurants.” Potatoes, usually a reliably popular commodity, have seen a massive hit. Two-thirds of the potatoes purchased in Canada are usually eaten at restaurants, and this year, potato farmers in Manitoba alone are sitting on a reported 254 million kilograms of potatoes that are unsold. Meanwhile, yeast and flour have been flying off the shelves, due to more time spent at home and an increased appetite for comfort carbs. “There’s a fundamental shift going on, not only where we’re buying our food but also in some key ingredients of what we’re buying,” says Fraser.
Restaurants
Before COVID-19, commercial food service in Canada was a $93-billion industry and on the rise. But after the government-
mandated lockdowns were announced, 800,000 restaurant workers were laid off across the country throughout March, and business owners themselves were facing the uncertainty of how long these closures would last. As the lockdowns continued to stretch into May, restaurants had to think creatively. Some expanded their offerings from take-out and delivery to offering pantry essentials, prepackaged goods, hard-to-find wines and even produce and specialty meats. Guy Rawlings, the owner of Montgomery’s Restaurant in Toronto, maintained his relationships with suppliers and producers by pivoting to a delivery food box model. Rawlings and his wife Kim, the restaurant coowner, had always wanted to offer a Community Supported Agriculture (CSA) box, and the lockdowns shifted the plan into high gear. “When we realized it was going to be a much longer break, we just went for it immediately,” Rawlings explains. The Grassroots Box is a customizable box with goods from producers that the restaurant has maintained long-standing relationships with. The food box was met with immediate demand, and a growing waiting list. But there’s also a learning curve to such a dramatic pivot. “Little things that nobody ever thinks about, like the packaging of the boxes and how much space it takes,” says Rawlings. “We’re reorganizing our restaurant, moving fridges, moving shelving, so each process is way more efficient.” They plan on continuing the delivery food box even after reopening. But other businesses have not been able to weather the transition as nimbly as the Rawlings. Paul DiGiammateo owns a wholesale food distribution company, primarily servicing
FEATURE
Agriculture
Over the course of an ordinary May in Ontario, harvesting asparagus would begin, and vegetable crops would be planted in fields across the province. While that was underway this year (during an unseasonably cold spring), farmers were reducing their planting acreage, guarding themselves against a growing season that will see a vastly reduced labour force, new social distancing measures and the creeping fear of an outbreak of COVID-19 in their operations. “I think growers are looking at it and thinking it may be a bigger risk to plant a full crop this year, we might try to do 50 or 70 percent of the crop,” says Bill George, chair of the Ontario Fruits and Vegetable Growers’ Association (OFVGA). “[There’s] lots of anxiety and stress put on the producer.” The shortage of temporary foreign workers stemmed from an announcement made on March 16 by Prime Minister Justin Trudeau that barred all foreign nationals from entering Canada. By March 24, that ban was lifted to allow temporary foreign workers, provided that they follow quarantine measures for 14 days following arrival. After the ban was lifted, about 20
percent less temporary foreign workers arrived at the beginning of the planting season. “We made good strides, but we are concerned about Visa processing delays in Mexico especially, which could lead to a shortfall of workers ahead of fall harvest,” says Stefan Larass, the policy adviser for the OFVGA. Another well-known problem is the issue of COVID-19 outbreaks at food processing facilities. Meat processing plants have been severely impacted; in Alberta, Cargill Inc.’s processing plant in High River and the JBS plant in Brooks were both temporarily shut down due to hundreds of confirmed cases. These two plants account for 70 percent of the country’s meat processing operations. According to a statement from the Canadian Cattlemen's Association (CCA), the outbreaks and reduction in operations created a backlog of 100,000 head of cattle waiting for processing. Economic forecast figures from the CCA estimated that the revenue losses could surpass $500 million by the end of June, impacting 60,000 beef operations across the country.
The shortage of temporary foreign workers stemmed from an announcement made on March 16 by Prime Minister Justin Trudeau that barred all foreign nationals from entering Canada. By March 24, that ban was lifted to allow temporary foreign workers, provided that they follow quarantine measures for 14 days following arrival. After the ban was lifted, about 20 percent less temporary foreign workers arrived at the beginning of the planting season.
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restaurant clients. His business also specializes in imported goods from Italy. (The country’s lockdowns called into question the crucial promotion and distribution season for imported gourmet goods.) DiGiammateo says his business as a distributor dropped by about 70 percent, with the remaining 30 percent coming from restaurants offering take-out and delivery. Much of his business was from large event banquet halls, ramping up orders for the upcoming wedding season – which was effectively cancelled. He cut his staff of about 20 people to six employees. And as the restaurants they supply to close, the unpaid invoices continue to mount. “They’re just saying, look, they were working on a monthto-month, week-to-week basis, and once their revenue stream stopped, they just sort of froze,” DiGiammateo says. “So we’re just not getting paid right now.”
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FEATURE
Future
The post-pandemic future is hard to predict for many industries, including food supply and demand. In the coming months, Bill George of the OFVGA anticipates higher produce prices due to reduced crop output, and limited vegetable selection on the shelves. Evan Fraser also predicts higher prices in meat due to the backlog and limited operating capacity of the meat processing plants. “There, you’ve got an effect on the people who are on the plant floors, you’ve got an effect on the farmers, and then ultimately, you’ve got an effect on the consumers,” he says. However, food producers and advocates believe that COVID-19 has revealed holes in the food supply system that could lead to a significant correction. In light of unreliable global systems, there’s a renewed urgency for solutions to shorten and localize the supply chain. “I think there will be tremendous interest in technologies and processes to shorten supply chains,” says Fraser. “I have no doubt at all that there will be an increase in that alternative food movement – the buy-local movement, community-supported
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agriculture, the farmer’s market, the direct marketing thing – and it will be enabled and amplified by technology e-commerce platforms, which are suddenly becoming more acceptable.” One solution may be in vertical farming and indoor growing, a market that was steadily increasing in the last few years but is predicted to shoot into a $12.77-billion-dollar market by 2026, according to Statista records. The pandemic’s impact on meat processing plants also is likely to impact meat consumption. Over the last few years, Canada already was seeing a decrease in meat consumption due to broader availability of meat alternatives and concerns over climate change. Evan Fraser is predicting an even faster decline due to rising prices of beef and skepticism over safety. “One of the things I’m anticipating is that COVID isn’t creating new trends, it’s actually accelerating trends that we’re on,” says Fraser. “Trends towards increased automation, trends towards increased transparency technology, trends towards increased alternative protein products. My expectation, or anticipation, is that COVID will push the pedal on those.”
FOOD WARE
Building on increased consumer interest in plantbased products and plant proteins, Roquette has introduced Nutralys L85M, a new specialty ingredient that expands the company’s existing line of Nutralys pea proteins. Beyond tastes and new textures that allow for delicious culinary experiences, Nutralys L85M enables food developers to create plant-based meats with less salt in order to meet consumers’ demands and expectations when managing their daily sodium intake. roquette.com
Tingley has introduced a new line of knee boots for workers in the food industry. The CSA Green Patch Pulsar Safety Toe PVC boot features a grade-one protective toe cap, a puncture-resistant midsole and is ESR hazard rated, with excellent slip-resistance on both wet-clean and wet-contaminated surfaces. Pulsar boots are 100 percent liquid-proof and provide resistance to a wide range of chemicals, including acids, alkalies, fats and oils. Patent-pending innovations include a calf-relief expansion gusset for more calf comfort than ordinary boots. Tread wear indicators show when half the treads have worn away. A contoured, cushioned insole absorbs shock and enhances comfort. tingleyrubber.ca
GASTROGRAPH AI USES ARTIFICIAL INTELLIGENCE TO SAVE TIME IN FOOD AND BEVERAGE MARKET RESEARCH Gastrograph AI is the first artificial intelligence platform to understand human sensory perception. It was designed by Analytical Flavor Systems to help food and beverage companies create better, more targeted and healthy offerings for consumers. Now, these companies can quickly make sense of critical aspects of their products to make important decisions in the products’ development. With Gastrograph AI, product developers no longer have to wait days or weeks for consumer panels or market research to complete because the platform quickly predicts which cohorts of consumers will like their product and how it compares to other products on the market. gastrograph.com
INNOVATIVE HAND-WASHING REMINDER AND TIMER Kitchen Brains has introduced the Scrub Buddy timer to support foodservice operators, food processing plants and other businesses that require frequent hand washing. Easy to use, each Scrub Buddy alerts up to eight employees every 30 minutes, or at a preferred interval, to wash their hands. It then times each hand wash for 20 seconds, as recommended by health experts, after which it automatically resets for the next 30-minute reminder. Employees receive both audio and visual alerts displayed on Scrub Buddy’s LCD screen. It’s durable, needs no installation and runs on four AA batteries. Magnetic backing will attach to most metal surfaces or the unit can be affixed permanently with an optional bracket. kitchenbrains.com
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NEW INGREDIENT HELPS MEAT ALTERNATIVES RETAIN TASTE AND TEXTURE, WHILE REDUCING SODIUM
A STEP IN THE RIGHT DIRECTION WITH NEW SAFETY BOOT
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