BlockTALK - Spring 2024 Business Excellence

Dear Esteemed Members of Meat & Poultry Ontario (MPO)

I’m reaching out to you with a genuine sense of pride and excitement as the President of Meat & Poultry Ontario. It’s not just a title; it’s a shared journey we embark on together, and I’m thrilled to discuss a topic close to our hearts—business excellence. The heartbeat of our success echoes in our commitment to quality, our embrace of innovation, and the sustainable practices we champion. We aren’t just in the business; we’re crafting a legacy of distinction.

Our industry thrives on the resilience forged through advancements. By integrating cutting-edge technologies, maintaining rigorous quality benchmarks, and fostering a culture of perpetual enhancement, we guarantee not just survival, but flourishing competitiveness.

In this dynamic landscape, collaboration emerges as our secret sauce. Together, we possess an arsenal of knowledge, experience, and passion that can propel Meat & Poultry Ontario to new heights. Let’s celebrate our shared values, ethical practices, and unwavering commitment to customer satisfaction, setting us apart as leaders globally.

Through shared innovation, investments in our workforce, and the embodiment of our collective values, we can elevate not only our businesses but the entire essence of Meat & Poultry Ontario.

Here’s to a future where each of us contributes to the symphony of success, defining what it truly means to achieve business excellence.

Kevin Schinkel President

Let’s talk about the backbone of any successful business: planning. Taking a moment to plan, even just a glance at the year ahead, can make a world of difference.

In this edition of BlockTALK, we’re diving into the BUSINESS of Meat. It’s a focus we’re keen on amplifying in our communications and resource offerings moving forward.

At our recent Meating Place Conference, we kicked things off with a leadership coach Natalie Dumond, delved into economic insights with Professor Ken Wong, who shed light on reducing costs without compromising quality, and wrapped up the day with a deep dive into Operational Transformation. MNP Partner Hussam Malek shared insights from Amir Quality Meats on their journey to enhancing efficiency across HR, Finance, and Operations – the key pillars of any successful enterprise. Speaking of operational excellence, have you heard about the Centre for Meat Innovation and Technology (CMIT)? We’re equipped with a full suite of innovation services to help you develop new products, refine existing ones, conduct small test runs without disrupting your production, and tap into industry-leading expertise – all within a federally licensed facility capable of handling everything from harvest to fully cooked products. Curious? Reach out to Luis Garcia (luis@meatpoultryon.ca) to schedule a tour and explore how we can collaborate.

At MPO, we deliver programming and information that’s tailored to our members. Don’t hesitate to let us know if we’re hitting the mark or if there’s something you’re craving more of. Send me an email anytime with your feedback to: franco@meatpoultryon.ca.

Let’s keep the momentum going!

VISION

A sustainable, respectful and diverse food system that celebrates the nutritional and economic value of meat and poultry.

MISSION

We strengthen the meat and poultry industry in Ontario by connecting people, influencing change and empowering our members.

MPO LIFETIME MEMBERS

• Carlos Domingos (2023)

• Richard Halenda (2021)

• Doris Valade (2019)

• Laurie Nicol (2018)

• Joe Abate (2017)

• Brian Quinn (2016)

• Graham Dalziel (2015)

• Tony Facciolo (2011)

• Pat Johnson (2005)

• Gerry Houtzager (2003)

• Leo Rocheleau (2001)

• Jim Vidoczy (2000)

• Nancy Ackert (1997)

• Dr. Ron Usborne (1996)

• Ron Deeth (1995)

MPO LONG TIME MEMBERS

Thank you to our long time members who have been helping move the industry forward for over 25 years.

Ontario Pork - 1980

Gord’s Abattoir Inc. - 1982

L’Orignal Packing Ltd. - 1986

Walnut Hill Farm - 1986

MMIS / Mondo Inc. - 1986

VG Meats - 1987

Stemmler Meats - 1988

Darling International Canada Inc. - 1988

Schinkels’ Gourmet

Meats - 1989

Springer’s Meats Inc. - 1989

Chicken Farmers of Ontario - 1989

Jetnet Norstar Corp. - 1989

Brenner Packers Ltd. - 1991

Norwich Packers Ltd. - 1991

Weston Abattoir Ltd. - 1991

Hay’s Custom Cutting - 1992

Hoffman’s Meats & European Deli - 1992

Newmarket Meat Packers Ltd. - 1992

Sprucedale Meats - 1992

Handtmann Canada Ltd. - 1992

Metzger

Meat Products - 1993

Schinkel’s Legacy - 1993

Yes Group Inc. - 1993

Malabar Ingredients - 1994

R Denninger’s Ltd. - 1995

Abate Packers Ltd. - 1996

Domingos Meat Packers Ltd. - 1996

Sargent Farms Ltd. - 1996

Townsend Butchers Inc. - 1996

Conestoga Meat Packers Ltd. - 1997

Pemberton & Associates Inc. - 1998

MEAT INDUSTRY ACHIEVEMENT (MIA) AWARD RECIPIENTS

• King Cole Duck (2021)

• Hayter’s Farm, Dashwood (2016)

• Schinkel’s Legacy, Chatham (2014)

• Conestoga Meat Packers, Breslau (2013)

• In Memory of Dave Tiller (2012)

• Halenda’s Fine Foods, Oshawa (2011)

• Springer’s Meats, Hamilton (2010)

• VG Meats, Simcoe (2009)

• Stemmler’s Meat & Cheese, Heidelberg (2008)

• Leo Rocheleau, Maidstone (2007)

ASSOCIATE MEMBER RECOGNITION AWARD (AMRA) RECIPIENTS

• Pemberton & Associates Inc. (2023)

• Farm Credit Canada (2022)

• Viscofan (2021)

• Multivac Canada Inc., Brampton (2020)

Franco Naccarato, Executive Director

• VC999, Saint-Germainde-Grantham (2018)

• Handtmann Canada, Waterloo (2017)

• Malabar Super Spice, Burlington (2016)

• Reiser Canada, Burlington (2019)

PAT JOHNSON AWARD

• Natasha Barlett, OMAFRA (2022)

• Kelly McAslan, OMAFRA (2022)

Welcome to the Association

Building an informed and engaged membership representing a diverse Ontario meat and poultry industry.

Meat and Livestock

Australia

Sabrina Kindler

skindler@mla.com.au

Phone: 202-436-4428

21 Dupont Circle NW Washington, DC 20037 www.aussiebeefandlamb.com

287 Farm

Production Inc.

Hong Dan Yu

Phone: (705) 662-9274

287 Proudfoot Rd.

Powassan ON, P0H1Z0 http://287farm.ca

IFAB Engineering Partners Ltd.

Brandon Yardy

byardy@ifabpartners.com

Phone: (519) 957-1944

360 Holiday Inn Dr #201

Cambridge, ON N3C 3T1 www.ifabpartners.com

Bachert Meats

Derick Bachert

Bachertmeats@gmail.com

Phone: (519) 357-0418

43181 Blyth Rd

Walton, Ontario N0K 1Z0

MPO

ADMINISTRATION BOARD LISTING

EXECUTIVE DIRECTOR

Franco Naccarato franco@MeatPoultryON.ca

TECHNICAL DIRECTOR Daphne Nuys-Hall technical@MeatPoultryON.ca

OFFICE MANAGER

Meghan Schmuck meghan@MeatPoultryON.ca

MEMBERSHIP COORDINATOR

Kaitlyn DeWeerd member@MeatPoultryON.ca

MARKET DEVELOPMENT SPECIALIST

Derek Boudreau derek@MeatPoultryON.ca

DIRECTOR, CENTRE FOR MEAT INNOVATION & TECHNOLOGY

Luis Garcia luis@MeatPoultryON.ca

EDITOR, BLOCKTALK MAGAZINE

Stacey Newman editor@MeatPoultryON.ca

BLOCKtalk is the official publication of the MPO, distributed to over 250 MPO members, commodity groups, and others throughout the industry, providing excellent advertising opportunities for suppliers of the meat and poultry industry to promote their newest, most innovative, supplies, equipment, and technology.

BLOCKtalk encourages Associate Members and supporters of the industry to submit articles which would be beneficial

ADVERTISING DEADLINES 2024

Spring January 30

Summer April 26

Fall July 26

Winter October 25

PRESIDENT | Kevin Schinkel

Schinkel’s Legacy, Chatham

PAST PRESIDENT | Carol Goriup

Florence Meats

SECRETARY/TREASURER

Adam Hayward

Nesbitt’s Meat Market, Lindsay

VICE PRESIDENT | Gerhard Metzger Metzger Meats, Hensall

DIRECTOR | Peter Baarda

J&G Quality Meats, Burlington

DIRECTOR | Doris Valade

The Malabar Group Inc., Campbellville

DIRECTOR | Jeff Miedema

Townsend Butchers Inc., Simcoe

DIRECTOR | Dale Schefter

Schefter Poultry Processing Ltd., Gorrie

DIRECTOR | Doug Alexander

Leadbetter Foods Inc., Orillia

DIRECTOR | Yaser Alqayem

Parkhill Meats, Parkhill

DIRECTOR | Christine BonneauO’Neill

L’Orignal Packing, L’Orignal

DIRECTOR | Shannon Desborough

Finest Sausage & Meats, Kitchener

DIRECTOR | Rafal Rusiniak

Handtmann Canada

Limited, Waterloo

to our members.

Over delivers under budget.

• Maximum versatility and dependability

• Simple mechanics for less downtime

• Easier cleaning and maintenance

• Surprisingly affordable

Injectors for Multiple

Brine

PI 26 Brine Injector >

How to Use Debt to Grow Your Business

By Ronda Payne, Farm Credit Canada (FCC)

Starting or expanding a business is both exhilarating and challenging. There’s the thrill of making a dream come true or watching it grow, tempered with the questions around how to finance this vision.

Patrick Khouzam, managing director with MNP Corporate Finance, explains that teaming up with a financial institution allows for food and beverage processors to invest in growth at a cost-effective rate.

“If a company did not have access to external debt capabilities, then the owners would have to wait for the company to be in a position to self-finance its growth strategy, which takes a lot longer and, as an owner, is a lot riskier,” Khouzam says.

Benefits to Financial Partnerships

“Debt should be structured as a business is growing and expanding,” Khouzam says.

He adds that as the business increases profitability, it correspondingly increases its safe leverage – levels that are on the edge of being high-risk but aren’t financially irresponsible. Khouzam says it’s best to continue increasing the risk level as the business grows.

“If debt creates value and opportunity for business to grow, it’s huge towards achieving the business dream.”

Before You Borrow

Genni Hibbert, a Relationship Manager with FCC, says borrowing from a financial institution helps build credit and creates future business operating options like credit lines. Plus, working with a lending representative who knows the industry can bring unexpected benefits that may have nothing to do with the loan.

“Getting the loan can create a great relationship,” she says, noting lenders may be able to help connect you with suppliers, IT contractors, lawyers and others you need on your team, as well as mentorship opportunities and business training.

Debt to Grow

Debt can often feel like a negative to small business owners because we’re conditioned to consider all debt as bad. However, if the debt creates value and opportunity for the business to grow, it’s a huge plus towards achieving the business dream.

“If debt creates value and opportunity for business to grow, it’s huge towards achieving the business dream.”

Hibbert says food and beverage processors should do a comprehensive business review and evaluate current needs to determine the next steps of growth and the financial needs to take those steps.

Borrowing from financial institutions, as opposed to friends, family or angel investors, can sometimes work out better for business owners since a financial institution isn’t going to demand a say in business operations like other lenders might do. Once the debt is paid off, there is no further obligation.

Structuring Debt

Khouzam explains that as a business grows and profitability increases, financial advisors can look at the processor’s debt levels and may consider revising their earlier financial plans.

Before you borrow, lenders will need key information from you and your business, to get a sense that you know what you’re doing and are a safe risk to take with their money. Hibbert recommends having these elements of your business on hand when borrowing money for your food and processing business:

Business plan: You need an updated business plan to identify goals and needs. Once in front of a lender, these details will help with working through the lending process.

Cash flow and projections: “The first thing we look at is cash flow,” Hibbert says. “We want to see a business plan that includes projections.”

Projections are achieved by reviewing your highs and lows throughout the year and then projecting those out to one year and three years. They show growth potential as well as indicate gaps in cash flow. Looking at this helps a lender understand the business better, so they can ask the right questions.

Your goal: No lender will provide a loan without understanding what it’s funding. Your intent may be for business growth, but it must be more specific. Is the money going to pay for new product research? Marketing? Equipment? A new space? Lenders often provide interest-only periods that provide funds when needed but don’t expect capital repayments until growth results have materialized.

Openness: Communication with a lender is key. There’s no need to be fearful of explaining current situations. With discussion, solutions can be found to provide lending and ensure it’s the right fit.

This article is reprinted by permission of the author and Farm Credit Canada. It was originally published in the FCC Knowledge Newsletter, Canada’s free, agriculture and food & beverage e-newsletter. For subscription information about the FCC Knowledge newsletter, click: https://www.fcc-fac.ca/en/knowledge.html.

ALWAYS INNOVATING ALWAYS EVOLVING ALWAYS FINDING

A BETTER WAY

FCC is proud to offer financing and knowledge to people with one eye on today and another on tomorrow. People like you. FCC.CA

The

CMIT courses are designed to cater to various skill levels and areas of interest, ensuring that all participants, whether beginners or seasoned professionals, gain valuable insights and practical skills Course offerings through the end of summer will include the following, please check CMIT CA for updates to the course schedule:

Sausage Making I & II

Knife Skills

Beef Processing

Pork Processing

Cleaning and Sanitation I & II

INNOVATIONS. CONNECTIONS. SOLUTIONS. OCTOBER 25-26, 2024

WHY ATTEND?

Meat Industry Expo will return to Niagara Falls Convention Centre, Niagara Falls, this October. The only show of its kind in Canada, this is your opportunity to network with colleagues, learn from industry experts, and keep up to date on trends and issues in the industry; all while visiting exhibitors showcasing the latest innovations, new technologies, and equipment and service solutions.

Friday, October 25, 10:00am to 5:00pm

Saturday, October 26, 10:00am to 3:00pm Niagara Falls Convention Centre

WHY EXHIBIT?

This two-day event will bring together all sectors of the meat processing industry in one location. Your participation in the exposition is an excellent opportunity to demonstrate your products and services to a captive audience from Ontario’s 1400+ meat processors, abattoirs, grocers and independent butcher shops and delis (retailers). The Expo offers over 25,000 sq. ft. of exhibitor space for you to:

 Showcase products, services, & equipment

 Launch new products

 Introduce solutions to industry challenges

 Meet potential, bond with existing, and reconnect with past customers

 Take orders, make sales

 Promotion to key buyers

TurkeyONTour!

Ensuring business growth by making turkey visible, accessible and exciting year-round

From Ontario Turkey

The turkey industry historically relied heavily on sales of whole turkeys during key holiday moments throughout the year. Realizing that changes needed to be made to ensure the growth of the industry, further emphasis was put into making turkey available yearround and in smaller portions. Ontario Turkey started their generic marketing programming in 2011 to combat the declining market and get consumers thinking about

turkey on a regular basis. Today you can find a variety of turkey cuts, flavours, and further processed turkey products in stores across the province.

Through various provincial and national research studies, we have seen that the consumer is reaching for turkey more often than before. Turkey Farmers of Canada (TFC) has been working with Leger to perform a biannual usage and attitude study. In their most recent survey in 2022, they found that “on average respondents are eating turkey 2.5 times per month” (Leger, 2022). While whole turkeys continue to be a fan favourite, we are encouraged to see that consumers are putting turkey into their grocery carts more often than just the holiday occasions. Respondents in our provincial Bond Brand Loyalty research study in 2023 are purchasing deli turkey and ground turkey during a typical month (Bond, 2023).

Ontario Turkey has worked to promote all cuts and types of turkey for many years. We have done a variety of promotions for turkey but the program we continue to activate is our sampling program called #TurkeyONTour. This fully integrated program was first implemented in 2017 and is operated by our agency partner. Apart from 2020 and 2021, the program has operated annually. We started with a branded food trailer and travelled around the province from May to September to events, festivals and most importantly, outside of grocery stores. Setting up outside of the stores gives us more control over the products sampled and the brand ambassador team. Activations at events and festivals provide a larger and more diverse audience.

Our provincial research notes that consumers would buy and cook more turkey if it were easier and quicker to prepare (Bond, 2023). Through the TurkeyONTour program, we aim to show consumers the ease of preparation with the

ambassadors cooking all products on-site. We have sampled a variety of delicious turkey products including kabobs, sausage, burgers, franks, breaded strips, and schnitzel. By interacting at the store level, we have a moment to capture the shopper, allow them to sample something new, talk about the benefits of turkey, and hopefully encourage them to put that product in their cart.

As the program evolved, we knew we needed to provide incentives for consumers to purchase after sampling. We reached out to our turkey processor pre-tour to see their interest in supporting our program. The support of the processors allowed us to provide a targeted coupon and highlight specific turkey products. Couponing provides a measurable redemption rate, and some retailers will provide a sales lift percentage post-sampling. Over time we have gained more interest from turkey processors and are encouraged by the partnerships we have formed all with the goal to increase turkey purchase and consumption.

The program has adjusted based on our experiences over the years. When we first started the tour, we were sampling Thursday through to Sunday but found that the foot traffic was low on Thursday and Friday and more interactions occurred on Saturday and Sunday. Last year to save costs the setup was pared down to a ten-by-ten pop-up branded tent that can be easily set up and activated outside of the grocery store. This allows us to have two teams out activating at two separate locations on weekends. One of the smallest but key changes in 2022 was translating our “free sample” sign into multiple languages so that those who might speak another native language could approach and ask for a sample.

Our wonderful team of brand ambassadors will be back out touring this summer. We use our social media to notify of where the team can be found and share fun moments of the tour.

Follow along with us @ontarioturkey and #TurkeyONTour.

GTA Strategies worked with us to define a winning strategy that helped break down interprovincial trade barriers for the meat and poultry industry.

GTA Strategies helped us secure over $500,000 in funds to help modernize our plants

Franco Naccarato Executive Director Meat and Poultry Ontario

Betty Dikeos VP Marketing D&D Poultry

Moroccan Turkey Cobb Salad

Moroccan spiced turkey centres this twist on the traditional Cobb salad. Perfect for a buffet table or arranged on individual plates for a light meal.

Moroccan Turkey Cobb Salad

Preparation Time: 35 minutes

• Cooking Time: 7 minutes

INSTRUCTIONS

Place turkey in a medium bowl. Sprinkle with paprika, cumin, coriander, ginger, salt, cinnamon, pepper, cayenne and half of the minced garlic; mix well.

In a large nonstick skillet, heat 1 tbsp (15 mL) of the oil over medium-high heat. Add turkey; stir-fry until cooked through, about 6 minutes. Remove from heat; set aside.

In a blender, combine hummus, parsley, vinegar, remaining oil and garlic, and 2 tbsp (25 mL) of water; blend until smooth. Season to taste with salt and pepper.

On a large platter, arrange lettuce, turkey, cucumber, cheese, eggs, tomato and peppers. Sprinkle with sprouts. Serve dressing on the side.

Nutritional Information

• Protein: 32 grams

• Fat: 21 grams

• Carbohydrate: 10 grams

• Calories: 360

• Fibre: 3 grams

• Sodium: 580 g

Makes 4 servings.

INGREDIENTS

• 375 g boneless skinless Ontario Turkey Breast, cut into bite-size pieces

• 1 tsp (5 mL) paprika

• 1/2 tsp (2 mL) each ground cumin, coriander, ginger and salt

• 1/4 tsp (1 mL) each ground cinnamon, black pepper and cayenne pepper

• 2 cloves garlic, minced

• 3 tbsp (45 mL) vegetable oil

• 1/2 cup (125 mL) prepared hummus

• 2 tbsp (25 mL) apple cider vinegar

• Salt and freshly ground black pepper

• 1/2 cup (125 mL) packed fresh Ontario Parsley Leaves

• 1 head Ontario Greenhouse Leaf Lettuce, torn into bite-size pieces

• 1 cup (250 mL) diced Ontario Greenhouse Cucumber

• 1/2 cup (125 mL) crumbled Ontario Blue Cheese

• 2 hard-cooked Ontario Eggs, halved

• 1 Ontario Greenhouse Tomato, cut in thin wedges

• Half each Ontario Greenhouse Sweet Yellow and Red Pepper, cut into strips

• Ontario Sunflower Sprouts

Bizerba Canada

A Pillar of Innovation and Reliability in the Meat Industry

By Stacey Newman

Founded in 1866 in Balingen, Germany, and establishing its Canadian presence in 1986, Bizerba has stood as a beacon of innovation and quality in the meat and poultry industry.

Derek Wagget is the director of industrial sales in Canada and Bizerba Canada Inc. is made up of a dedicated team of 82 employees, contributing to the company’s global workforce of over 4,900. BlockTalk Magazine spoke with Wagget about Bizerba Canada and how the company maintains its commitment to advancement in technology, quality and customer service.

Bizerba serves a global market, with representation in 120 countries and 25 direct subsidiaries, including its Canadian arm.

Wagget joined Bizerba in 2005. He offers a wealth of experience and a deep understanding of the weighing industry. His journey, which started in 1989 with another weighing company, has seen him evolve from software and automation roles to his current leadership position.

Bizerba Canada has not only expanded its product range over the years but also reinforced its commitment to providing tailormade solutions to its clients, explains Wagget.

Bizerba Canada focuses on offering unique solutions tailored to individual customer needs. The company’s long-term perspective is rooted in building relationships rather than mere transactions. Looking to the future, Wagget emphasizes the ongoing necessity of leading through innovative solutions, especially in an industry where technology and customer needs are constantly evolving.

Wagget’s business philosophy: “Build relationships through trust by

excelling in your domain.” This approach has guided his personal and professional journey.

Bizerba’s Core Competencies: Weighing, Labelling, and Slicing

Bizerba’s core competencies lie in three areas: weighing, slicing, labelling and inspection—all of which are integral to the meat processing industry. Their deli-counter scales and slicers are a common sight in retail stores and restaurants, reflecting their dominance in this sector. These tools are not just known for their reliability but also their precision and user-friendliness, making them a staple in various retail environments.

In manufacturing facilities, Bizerba offers sophisticated solutions for both fresh and packaged food. Its high-speed checkweighers are particularly notable for ensuring the correctness of declared weights. This level of precision is critical in an industry where accuracy is paramount, both for regulatory compliance and customer satisfaction.

Innovations in Labelling and Inspection

Bizerba Canada has been a leader in advancing labelling solutions. Its trademark “Cleancut” labels, which forego the traditional siliconized backing paper, are a prime example of its innovation. This approach not only enhances efficiency but also aligns with the growing need for sustainable solutions within the industry. These labels are applied seamlessly as products move down production lines, showcasing Bizerba’s prowess in integrating technology with production processes.

In terms of inspection, Bizerba offers advanced vision solutions that check the correctness of labelling on finished goods. This technology is crucial for ensuring that all packaged products are accurately and appropriately labelled before they reach the consumer, thereby minimizing errors and potential regulatory issues.

Metal Detection and X-ray Devices

Understanding the critical importance of food safety, Bizerba Canada provides state-of-the-art metal detection and x-ray devices. These tools are essential for ensuring that food products are free from unexpected foreign contaminants, a vital aspect of quality control in the food processing industry.

Automation in Inspection Systems

With the industry facing challenges in staffing and maintaining efficient production lines, Bizerba Canada is focusing on automation as a key area of development. Its automated inspection systems are designed to aid producers, streamlining processes, and reducing the need for manual intervention. This focus on automation not only enhances efficiency but also addresses some of the pressing labour challenges in the industry.

A Leader in Industry

Through its pioneering product offerings and continuous leadership in technological advancements, Bizerba Canada has solidified its position as a key player in the meat and poultry industry.

Wagget explains the company’s mission is to set international standards for weighing, slicing, labelling and inspection with the quality and wide variety of unique solutions that we deliver. The company also paves the way for future developments with a focus on precision, sustainability, and automation—”underscoring Bizerba’s commitment to meeting the evolving needs of its customers and the industry at large,” says Wagget. “As a familyowned company, responding to the needs of our customers and employees takes centre stage.”

Bizerba Canada remains a pivotal player in the meat and poultry industry committed to innovation, customer service, and sustainability. This sets Bizerba apart as a company not only equipped to handle today’s challenges but also poised to create and lead tomorrow’s opportunities.

According to Wagget: Bizerba Canada sees its relationship with Meat & Poultry Ontario as vital for industry growth and sustainability. The collaboration allows for the sharing of best practices, technologies, and challenges, fostering a community that thrives even in competitive environments.

Bizerba Canada Inc.

5865 McLaughlin Road, Unit 3

Mississauga, Ontario L5R 1B8

Derek Wagget, Sales Director, Industrial

Teams: 905-501-7067

Mobile: 416-989-0739

Email: derek.wagget@bizerba.com bizerba.com/ca

VG Meats

Spearheading Sustainable Change in the Meat Industry Through Regenerative Agriculture

By Stacey Newman

VG Meats is a local, family-owned company in Ontario, Canada led by the Van Groningen brothers—Cory, Chad, Kyle, and Kevin. The organization has been serving Ontario families high quality meat since the 1970s. All of its products are born, raised, fed, processed and packaged in Ontario.

VG Meats specializes in small-herd, high-care beef that is never fed antibiotics, is fully traceable and is the first tendernesstested beef in Canada. VG also offers local chicken, pork and turkey and the team creates chef-inspired prepared meals, daily lunch options, award-winning deli meats and more.

We spoke with Cory Van Groningen about his company, family and what the future holds for VG Meats and the industry on the whole.

Van Groningen explains that while VG Meats is, of course, all about meat, the company is perhaps best known today as a leader and educator in regenerative agriculture. The company’s dedication to sustainable practices is exemplified by its Harvest to Gather initiative established by VG Meats in 2022 in collaboration with Rowe Farms, and Olliffe Butcher Shop. The initiative focuses on the health of local families, ecosystems, and economies, underlining the group’s commitment to being true stewards of the land.

An ambitious project rooted in over 150 years of collective history in Ontario communities, Harvest to Gather is characterized by its dedication to regenerative outcomes, holistic management, and sustainable food systems. “The initiative recognizes the interconnectedness of food choices with local ecosystems and the broader environment, emphasizing the importance of responsible and informed food purchasing decisions,” says Van Groningen.

In addition to its focus on sustainable farming and community engagement, the Harvest to Gather initiative has also been recognized for its high-quality products. VG Meats, under the Harvest to Gather umbrella, received multiple awards at the 2022 Ontario’s Finest Meat Competition.

Harvest to Gather’s broader aim is to contribute to a resilient food system in Canada through collaborative and holistic business and farming strategies.

Key aspects of VG Meats’ operations, philosophies and challenges facing the industry today

In the spirit of education, transparency and contributing to a better industry, Van Groningen spoke to us about some of the most pressing topics and notions in the meat industry today.

These are some of the key takeaways from our discussion:

Best practices

• A holistic and educational approach to genuine sustainability: VG Meats adopts a holistic approach in decision-making, balancing social, environmental, and economic factors. This approach is essential for achieving regenerative outcomes, as it incorporates all aspects of sustainability.

• Direct customer engagement: Emphasizing the importance of transparency, Cory highlighted their strategy of direct customer engagement to overcome industry challenges. This involves educating customers about their products and practices.

• Future focus and challenges: Looking ahead, Cory mentioned the ongoing challenges and the need for continuous adaptation in the food industry. VG Meats plans to focus on educating both their customers and team members about the holistic impacts of their food choices.

• Industry perspective and advice: Cory provided insights into the meat industry’s future, emphasizing the need for greater collaboration and holistic decision-making. He suggested that the industry focus on educating consumers and adapting to changing demands and circumstances.

• Education: VG Meats has focused on educating its customers to make informed decisions, rather than relying on external regulatory changes.

Industry challenges

• Ethical business challenges facing sustainable, honest farmers: Van Groningen discusses the ethical dilemmas facing the industry on the whole, particularly with competitors who claim sustainable practices but do not actually implement them. This results in unfair

competition where unethical businesses can offer lower prices.

• Combating food fraud: Van Groningen expresses concerns about food fraud and the need for more regulation and oversight in the industry.

Looking to the Future

Van Groningen describes his company’s MPO membership as vital support that the company would otherwise need to manage internally. He says that MPO plays a crucial role in VG Meats’ holistic decision-making process, much of which would be resourceintensive for VG Meats to undertake on its own. “MPO is a platform for collaboration among its members, suggesting that there is considerable opportunity for VG Meats to work collectively with others in the industry on shared initiatives through this membership,” finished Van Groningen.

VG Meats exemplifies a significant shift in the Canadian meat industry. The company’s holistic approach and commitment to ethical practices set it apart as a leader in the field, providing a model for sustainable and responsible business in the meat industry.

VG Meats

Head Office

966 Concession 6 Woodhouse

Simcoe, Ontario N3Y 4K4

Phone: (519) 426-2000

Email: info@vgmeats.ca vgmeats.ca

The Van Groningen brothers.

Five Strategies to Navigate the Economic Headwinds Facing Food and Beverage Processors

By Matt MacDonald, National Leader, Food & Beverage Processing, MNP

Inflationary pressures have severely impacted Canada’s food and beverage sector over the past 12 months, compounding three years of issues in the supply chain and amplifying the challenges of operating a low-margin business. Staring down the possibility of an economic downturn, businesses must take bold steps to manage costs and shore up their operations. In this article, we look at five practical and proven steps leaders can take to improve operational efficiency, control costs, and increase profitability for the near and long term.

Over the past few years, Canada’s food and beverage processors have suffered a global pandemic, the most significant supply chain disruption in history, and inflation at 30-year highs. Now, many economists and industry experts are warning of an economic downturn in the year ahead.

Extraordinary times call for exceptional measures. Here, we look at five key considerations to help keep your business profitable in the face of rising costs and uncertain times ahead.

1. Demand planning: Be ready for anything

Stringent inventory management, a thorough understanding of your costs, revenue and margins, and robust planning are essential to navigate the current economic landscape.

• Tighten your inventory controls

- Challenges in sourcing raw materials will impact your profitability. So will shrinkage and tying up too much cash flow in unused inventory. No business can survive these economic headwinds by estimating purchasing and production targets. You must be relentless with your inventory controls.

• Get clear on your numbers

- Costs, sales, and margins are easy to memorize when prices are stable. It’s far more important to be on top of these figures when volatility is as high as it is right now. Don’t assume. Check your figures often and be ready to make decisive decisions.

Continued on page 30

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• Have a strategy and a backup plan

- You need to be confident in the steps you’re taking to weather the storm. You should be prepared for the possibility that those plans may change. Study the scenarios you’re most likely to face in the near- and mid-term future and be ready to act on signs that need to pivot.

2. Capitalize your business for growth

Access to debt and equity financing will bring added confidence and adaptability and can help to improve your competitive edge. Depending on your financial circumstances, some options to consider include:

• Increase your access to liquidity

- Conventional wisdom says you should pay down your liabilities with interest rates rising. But ready access to credit can help you weather the turbulent times ahead. Primarily, it will allow you to buy up inventory and equipment if prices suddenly drop or one of your competitors goes insolvent.

• Add a financial backstop to steady your path forward

- Can you demonstrate a healthy balance sheet and a clear path to profitability? This may be an ideal time to pitch your business to new investors. The right equity partner can be a steadying force, providing much-needed cash and confidence to reassure your team, creditors, and other investors.

• Take advantage of industry consolidation

- Many of your cash-strapped peers may be considering opportunities to cash in before the value of their business disappears. The right debt or equity partner could help you add production or distribution capacity, acquire a valuable brand or intellectual property, and increase your overall footprint.

3. Plug your profit leaks

Taking steps to eliminate waste and inefficiencies in your business will give it the breathing space it needs to weather turbulent economic headwinds. Impactful measures you may want to consider include:

• Get clear on which products are (and aren’t) making you money

- It may seem counterintuitive, but now might be the time to downsize your product catalogue. A SKU rationalization (i.e., eliminating your least profitable items) will help you see which products are earning money and which aren’t worth the time and money.

• Curb waste and improve efficiency

- Do you know how much you’re losing to shrinkage? Taking steps to improve wasteful or inefficient processes can massively impact your bottom line. This could be as simple as tuning up your production equipment or as comprehensive as redesigning your manufacturing processes.

Continued on page 32

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• Eliminate delays in getting your product to market

- The supply chain challenges of the past three years highlighted the risks of depending on narrow distribution channels for inputs and delivering products to market. Expanding your network of suppliers and buyers will help to keep your costs manageable and ensure your production lines continue running.

4. Technology: Embrace the investment

More businesses are turning to digital transformations to help manage costs and increase productivity. Food and beverage enterprises that proactively invest in modernizing technology are at a significant advantage compared to competitors that continue to rely on outdated and inefficient systems.

• Build your foundation

- Enterprise resource planning (ERP) and/or customer relationship management (CRM) are low-hanging fruit to replace spreadsheets and uncoordinated databases. Investing in these systems — and continuing to keep them current — is essential if you want to be competitive in the marketplace.

• Set it, don’t forget it

- Don’t take for granted that systems and tools that have worked in the past will continue to meet your needs into the future. Review and reinvest in your technology regularly to

ensure it’s meeting your needs and whether there are better options to help your business to operate more efficiently.

5. Trust in your sales and marketing teams

Many of your competitors will cut back on sales and marketing expenses amid spiralling costs and looming fears about a recession. This is a mistake, and you can capitalize by increasing spending in these areas over the coming months.

• Own your story

- You need more than a great product to win market share. A compelling brand and an aggressive marketing strategy are also critical. Find out what matters to your target market and lean into what sets your product apart.

• 10x your marketing investment

- The value of earned media is greater than ever. Take a note from any of several food and beverage brands that have recently received considerable praise and attention for their unconventional marketing campaigns. Don’t be afraid to push the envelope.

• Iterate, evaluate, and eliminate

Leverage the robust analytics from digital, search, and social media advertising to optimize the effectiveness of your sales and marketing efforts. Experiment with different headlines and key messages. Quickly abandon ad sets that aren’t working and double down on those that are.

MNP’s Food and Beverage team can help

Want to learn more about these strategies to improve your performance and increase your business resilience? Contact a member of MNP’s Food and Beverage Processing team to learn more about the options and opportunities available in

We’ll pair our industry-leading insight with expertise from across our firm—including some of Canada’s most knowledgeable corporate finance, digital, and performance improvement advisors—to help you weather the economic headwinds ahead.

Food and Beverage Wholesale Distribution Industry Ranks its Top Ten Risks

By Workplace Safety & Prevention Services

When workers and employers from the food and beverage wholesale distribution industry came together earlier in 2023 to determine their top risks, it was a reminder of how much we can accomplish when everyone works together. Facilitated by Workplace Safety and Prevention Services (WSPS), the risk assessment workshop was held for industry-engaged workers and management representatives, with the support of various stakeholders, to gain a deeper understanding of the occupational health and safety risks they face at work.

The food and beverage wholesale distribution industry is an integral part of Ontario’s food system. Almost everything we purchase from a grocery store has passed through a wholesale food and beverage distributor before it appeared on the store shelf. They are the link between manufacturers and retail outlets. Without wholesalers, the food and drink products we have access to and the way we buy them would be very different.

Why wholesale distribution?

Considering how important the food and beverage wholesale distribution industry is to our daily lives, it was concerning to

see that in 2022 it had a much higher lost-time injury (LTI) rate (1.22) than the general services sector (0.67). These numbers tell us that wholesale distribution workers were getting hurt more often than workers in the other sectors WSPS serves. Because of this, WSPS decided to apply the proven risk assessment and root-cause analysis methodology, introduced by the Ministry of Labour, Immigration, Training and Skills Development (MLITSD). “Food and beverage wholesale distribution was chosen for this initiative because it had the highest subsector risk rating in the service sector and the third highest across the three sectors WSPS serves, based on WSIB premiums and LTI rates,” said Rishma Brenner, health and safety consultant with WSPS. Rishma co-facilitated the risk assessment workshop.

Risk assessment and root-cause analysis workshops are not new to Ontario. Since 2014, they have been conducted with several sectors, including healthcare, mining, transportation, construction, and agriculture. More recently, Ontario’s food manufacturing sector went through this process and uncovered its top risks and the root causes of inadequate lockout tagout, which was identified as the primary risk during the risk

assessment activity. “This process has proven to be a systematic way to rank industry-specific risks as identified by the workers, supervisors, and employers who are working with and have the most knowledge of these hazards,” says Jody Young, president and CEO of WSPS. “This process moves participants away from pinning responsibility for safety on one group or another within an organization to collectively identifying ‘what keeps everyone up at night’ regarding their safety in the workplace.” It leverages the collective experiences of all involved to identify risks, rather than relying on lagging indicators.

For food and beverage wholesale distribution, WSPS invited workers, supervisors, and employers from companies of various sizes to participate in the risk assessment. These representatives volunteered their time to identify, discuss, and analyze the leading risk factors in their industry. In advance of the workshop, they submitted their top health and safety concerns. “We asked the participants to think about what was hurting them or could potentially hurt people or make them ill,” explains Brenner. “In total, 51 hazards were identified before the workshop. Three more were added on the day of the workshop, and one more was added post-workshop. So, 55 hazards were ranked, assessed, and validated.”

The Top Ten Identified

Musculoskeletal disorders related to manual material handling topped the list of risks ranked by the group, which aligns with injury data from 2020 and 2021. During those years, the most

common LTI in this industry was due to overexertion, especially while lifting, pulling, and pushing. The second highest risk, as identified by the group, was low-risk perception. This refers to the idea that workers and employers either aren’t aware of or don’t fully understand the risks they may be encountering at work. Third on the list was slips, trips, and falls, followed by workers’ heads struck against racking. The remainder of the list included pedestrian safety, fatigue and stress as a risk factor, the presence of temporary workers (i.e., workers from a third-party agency), motor vehicle incidents during the transportation of goods, moving pallets around, and powered material handling equipment collisions with fixed structures/objects.

The Collaboration Led to a Positive Experience for All

“By using an open, transparent, and collaborative process, we ensure that different perspectives and viewpoints are heard,” says Brenner. Her comments were echoed by Monica Sohi, health and safety manager for Metro Ontario Inc. “This method of risk assessment is effective because it considers the larger picture of the industry. It allows for group input and discussion,” says Sohi. “As each company has different processes, products, and work environments, this approach gave us the opportunity for a thorough discussion and to share our knowledge.”

Cameron Melin, a worker representative from Gordon Foods, found the risk assessment workshop to be a productive event.

Continued on page 38

Ontario Finest Meat Competition is back!

Can your product stand up to the competition?

Your best products will be evaluated against your peers by an elite group of non-partial judges including media, chefs, foodies, and buyers.

Important Dates:

June 5 4:30pm Deadline for entry

June 18, 19 or 22 Product pick-up

June 26-27 Judging

October 26

Awards presented at the Red Carpet Gala, Niagara Falls

Register your products at www.meatpoultryon.ca

Questions can be directed to Daphne at technical@meatpoultryon.ca or by calling (519) 763-4558 x222.

“I enjoyed the collaboration among others within my industry and I was happy to put my experience to use,” he says. “A risk assessment can sometimes be very one-sided and may favour a desired viewpoint. Because we were such a varied group, it

Then, the results will be shared by WSPS, system partners, and other industry stakeholders and the information used to develop resources specifically targeting the hazards in this subsector.

Continued from page 36 – FOOD AND BEVERAGE WHOLESALE DISTRIBUTION INDUSTRY RANKS ITS TOP TEN RISKS

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Elevating Excellence

The business benefits of implementing HACCP in provincially licensed meat plants in Ontario

By Daphne Nuys-Hall, Technical Director, Meat & Poultry Ontario

In the dynamic landscape of the meat industry, where quality and safety are paramount, implementing robust food safety systems is not just a regulatory requirement but a strategic imperative. For provincially licensed meat plants in Ontario, embracing internationally recognized standards, such as the Hazard Analysis Critical Control Points (HACCP) system or one of the Global Food Safety Initiative (GFSI) benchmarked standards, goes beyond compliance—it becomes a catalyst for business excellence.

Meeting Regulatory Compliance and Beyond

At its core, the implementation of HACCP or a GFSI benchmarked standard is a proactive response to the stringent regulatory landscape governing meat processing in Ontario. The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has set stringent standards to ensure the safety and quality of meat products. HACCP, a systematic approach to identifying and controlling hazards, aligns seamlessly with these

PROCESSORLINKS FOR ABATTOIRS

We have been learning from abattoirs how we can better support the processing of your animals.

To get started, just use your phone to visit this QR code and fill in the form. We will reach out from there.

Or visit the ProcessorLinks homepage directly with the url below.

processorlinks.ca

regulations, providing a structured framework for compliance. However, the benefits extend far beyond mere regulatory adherence. By adopting HACCP or a GFSI benchmarked standard, meat plants position themselves as industry leaders committed to the highest standards of food safety. This proactive approach not only safeguards the business from potential regulatory penalties but also instills confidence in consumers, retailers, and stakeholders, enhancing the brand’s reputation.

Enhancing food safety and quality

Food safety is non-negotiable in the meat industry. Implementing HACCP ensures a systematic analysis of processes, identifying critical control points that directly impact product safety. From raw material sourcing to processing and distribution, each step is meticulously scrutinized to guarantee the production of safe and consistently high-quality meat products.

We heard from you that:

• You wanted to support your current processes but not replace them (“if it ain’t broke, don’t fix it”).

• There’s a lot of communication and coordination problems with farmers.

• Farmers often show up on processing day with:

• Different size or amount of animals than expected.

• A lack of paperwork.

• A lack of preparation.

• Mismatched expectations between cut styles offered.

• Trust is key to conducting business.

For abattoirs we will be updating ProcessorLinks with the following improvements:

• Access industry news and information pertaining to abattoirs.

• Customizable profile to promote your services.

• Allowing you to dictate your availability for processing on particular days.

• Promote & share last minute availability on your profile.

• Receive booking requests from Farmers online.

• Ability to accept, modify or reject any booking requests received.

• Automatically remind farmers of upcoming dates, schedules and expectations.

• Ability to share images of cut sheets and packaging style to avoid missed expectations with farmers.

This commitment to food safety and quality has a direct impact on customer satisfaction. Consistent product safety and quality builds trust and loyalty among consumers, fostering repeat business and positive word-of-mouth marketing. In a competitive market, where consumers are discerning about the safety and quality of their food, this commitment to excellence becomes a potent differentiator.

Operational Efficiency and Cost Reduction

HACCP is not just a food safety system; it’s a holistic approach to process optimization. By systematically identifying and controlling hazards, meat plants can streamline their operations, reducing the risk of contamination, spoilage, and waste. This optimization doesn’t just enhance food safety—it improves operational efficiency.

Market access and Global Competitiveness

Efficient processes lead to cost reductions. By preventing issues before they occur, meat plants can minimize the need for costly corrective actions. Furthermore, the systematic analysis of processes often reveals opportunities for resource optimization, reducing both direct and indirect production costs. In essence, implementing HACCP becomes a dual-purpose initiative— ensuring food safety and bolstering the bottom line.

Provincially licensed meat plants in Ontario that embrace HACCP or GFSI benchmarked standards open doors to broader market access. Many retailers and foodservice providers require suppliers to adhere to recognized food safety standards. By aligning with these standards, meat plants gain access to a larger customer base.

Participating in these supply chains also enhances a business’s competitiveness. Many markets prioritize suppliers who adhere to stringent food safety standards. By meeting or exceeding these expectations, provincially licensed meat plants position themselves as reliable partners in the marketplace.

Building a Culture of Continuous Improvement

Implementing HACCP or a GFSI benchmarked standard is not a one-time endeavour; it’s a commitment to continuous improvement. These systems require regular monitoring, evaluation, and adaptation to changes in the regulatory environment or industry best practices.

This commitment to continuous improvement goes beyond food safety; it permeates the organizational culture. Employees become stakeholders in the success of the business, actively contributing to the identification and mitigation of risks. This culture of vigilance and improvement creates a dynamic and resilient organization, ready to face the challenges of a rapidly evolving industry.

Strategic Investments in Business Excellence

For provincially licensed meat plants in Ontario, implementing HACCP or a GFSI benchmarked standard is not just a compliance requirement—it’s a strategic investment in business excellence. From ensuring regulatory compliance and enhancing product quality to improving operational efficiency and accessing markets, the benefits are both immediate and far-reaching. As the meat industry becomes more competitive and consumers demand higher standards, embracing these internationally recognized systems becomes not just a choice but a necessity for those aiming to thrive and lead in the evolving landscape of meat production and distribution.

The

Nobody

If something were to happen, that would not be the right time to find out you bought ground beef when you were sure you purchased a rib eye. Not all things are equal and not all things cost the same. Reasonably painless reviews of your insurance policies is always best done before a claim occurs.

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