Meat Matters

MEAT PROCESSORS BUSINESS INFORMATION FROM THE AGRI-FOOD MANAGEMENT INSTITUTE

MEAT MATTERS

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FourWAYS TO

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ATTRACT & RETAIN CUSTOMERS pg. 07

TRANSITIONING TO THE NEXT GENERATION pg. 08

ONTARIO'S e m o Bringing h are FINEST w d r a h the BUTCHER

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SOCIAL MEDIA & ONLINE MARKETS THE WAY TO GO IN THE DIGITAL AGE

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Meat Matters

FALL 2017 — VOLUME 01

VOLUME 01

MEAT MATTERS Agri-food Management Institute Board of Directors Doug Alexander Chair Ippolito Fruit & Produce Laurie Nicol Vice Chair Ontario Independent Meat Processors Jean Marc Beneteau Treasurer Primary Producer Specialty Grains Peter Henderson Director Ideovation Inc. Dr. Sara Mann Director University of Guelph Ed Verkley Director Primary Producer, Poultry Jim Gracie Director Treeline Consulting Andrea Gal Director MGS Farming and Better Farming & Farms.com Chris Hiemstra Clovermead Apiaries Limited

AMI Staff Ashley Honsberger Executive Director

Meat Matters is a publi cation aimed at providi ng small and medium-sized meat pr ocessors with practical advice on how to increase their returns and be more successful by using better management pr actices.

In these pages, you will find useful information on a range of topics: Looking for financial he

lp to grow your compan y? It’s here.

Want to know how to wo rk more collaboratively with input suppliers? Got that.

Interested in attracting

Ashley Honsberger

more customers? Got tha t too.

Like to learn about how to build a better food saf ety culture in your plant? Check.

We’ve talked to dozens of people in the know — those who have been through it and tho se with skills that can bri ng you and your company to the ne xt level.

So why?

Laurie Nicol

Deanna Hutton Project Manager Juli De Lange Project Coordinator – 100 Stone Road W, Unit 105 Guelph, Ontario, Canada N1G 5L3 519.822.6618 ami@takeanewapproach.ca www.takeanewapproach.ca

Designed by The Blondes Inc. www.theblondes.ca Written by Lois Harris Wordswork Communications www.loisharriswrites.com | wordswork@eastlink.ca

d to promoting t Institute (AMI) is dedicate The Agri-food Managemen nagement. We develop ut agri-food business ma new ways of thinking abo and training ls, information, resources, business management too sors, and i-based producers, proces agr d an od i-fo agr io’s tar for On n and Ontario are grateful to the Canadia their business advisors. We ward 2 program. us through the Growing For governments, which fund an industry Meat Processors (OIMP) is The Ontario Independent at and poultry leadership for Ontario’s me es vid pro t tha n tio iza an org safety and integrity and ovation, promoting food industry by fostering inn engthen Ontario’s e OIMP’s mission is to str recognizing excellence. Th , responding to working with stakeholders by ry ust ind ry ult po d an meat the membership. opportunities on behalf of ng fyi nti ide d an es ng alle ch cessors’ ine as new tool in meat pro gaz ma s thi ng shi bli pu ’re Together, we lbox. business management too processing industry rtunities in today’s meat po op of nty ple are ere Th esses to thrive, all and medium-sized busin for entrepreneurs and sm ice and resources. given the right tools, adv als. you meet your business go We want to help people like roach.ca or oimp.ca Contact us at takeanewapp Hope you enjoy the read! for more details.

– Ashley Honsberger Executive Director titute Agri-food Management Ins – Laurie Nicol Executive Director Processors Ontario Independent Meat

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r u o Fways to

Meat Matters

attract & retain custOmers

F ran co

Naccarat o

“An outside perspective can be hugely valuable to business owners because it helps you see things that are hard to see when you’re busy day to day,” says Rob Hannam, President and Client Director of Synthesis Agri-Food Network, a company that provides business advice to farmers and food processors, among other services.

Franco Naccarato, program manager for the Greenbelt Fund, has been in the food industry for 17 years and has more than a decade of experience in marketing, sales and business development.

The Greenbelt Fund runs the OntarioFresh.ca website that links businesses buying and selling local food. It currently has close to 1,300 registered sellers and 761 buyers. Businesses can register online at OntarioFresh.ca/register Naccarato has four tips for meat processors looking to attract and retain customers:

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Find the right-sized customer and go after a specific market. When the Greenbelt Fund staff were doing the research to create OntarioFresh, Naccarato says they found that businesses were looking for “the right dance partner.” They wanted to find customers that were in the same stage as themselves – smaller operations selling to smaller places, medium and large operations to medium and large companies.

“Finding the right size of business is just as important as finding the right type of customer,” he says.

In terms of that customer, he adds, “it’s easy to say you want to sell to everybody, but it’s important to focus on a specific type of market.”

Naccarato says it’s best to determine who’s going to be the most interested in the products you’re offering. These can range from direct-to-consumer to foodservice (whether that’s quick serve like McDonald’s or institutional like universities), to restaurants or retail – as in grocery stores.

Businesses should also play to their strengths – whether that’s providing a cost competitive, high-volume supply (institutional), or a low-volume, artisanal or niche product (fine dining).

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Build relationships. Whether owners are looking to sell products themselves or through a broker, establishing good relationships is key.

Naccarato says that food brokers have already established connections with many distributors and wholesalers and can

make it easier to enter new marketplaces. He says there are brokers for retail and food service and they represent multiple accounts – for example desserts, pastas, beverages and meats.

Doing it yourself means building trust directly with wholesalers and distributors. Naccarato suggests taking the wholesaler’s sales team out for a meal to sample the product or going on a ride-along to see how they operate with customers.

“Most have listings of up to 10,000 products, but they’ll sell the same 1,000 products over and over again, and will push the ones they know best,” he says. Having the face-to-face interaction means they may look to your products before others.

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Know your value proposition. The number and variety of products that are currently on the market are why businesses have to promote what makes their sausage, chop or cut of meat stand out from the crowd.

Hannam says that having “fresh eyes” look at your operation can help shine a light on opportunities you might be missing, or ways to resolve challenges that are tough to figure out.

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Work the trade shows and upsell.

With the explosion in local food interest, there are many opportunities to network and sell products at industry and regional events.

Naccarato cites the annual Grocery Innovations and Restaurants Canada shows, as well as SIAL Canada, along with many regional culinary and tourism groups like Taste Real Guelph, Savour Ottawa, Foodlink Waterloo and Foodlink Grey Bruce.

He also says that if restaurants are your customer base, it’s great to chat with chefs, find out what their customers are asking for, and fill that demand. Having suggestions on new and different products or items that they can highlight on the menu are usually welcomed by busy chefs and provide an opportunity for sellers to supply more products.

“Why are people going to buy your steak versus anyone else’s?” Naccarato says.

The point of difference should be something that will solve the customer’s problems, or fill a hole in their customers’ demands. These can be anything from supply efficiency and volume, to product uniqueness, flavour and/or quality.

He suggests it’s good to know the unit cost of the product, as well. Rather than quoting prices by the case, it’s better to quote on what’s going on the end consumer’s plate (e.g. a rasher of bacon).

The smaller per-unit price makes it easier for customers to figure out what they need to charge the end consumer to make their profit.

s r o s i v d a s s e n i Bus e z i e s p l he , s e i t i n u t r o p p o s e u s s i e resolv “It’s human nature to become too focused on one thing or one product or customer group — changing demographics, new products and different preparations are being introduced all the time, and your customer base may be shrinking without you realizing it,” he says.

Advisors can help in many areas ­— working through finances, understanding customers and markets, strengthening food safety or process engineering, and resolving human resource issues.

Business owners should first figure out where they need the most help, and then seek out the advisor who can do the job.

“Think of it as expanding your management team” he says. Hiring an advisor can be temporary, to deal with a specific issue, or longer-term, to provide ongoing business coaching and be a sounding-board for decision-making.

To find the right fit, the Ontario Ministry of Economic Development and Trade has business advisory service offices in London, Toronto, Ottawa and Thunder Bay and the Ontario Ministry of Agriculture, Food and Rural Affairs has a business development unit . Financial institutions such as BDC and Farm Credit Canada can also be useful for strategic insight. And there are organizations who can link you to advisors who work with food businesses such as Food Starter or the Ontario Agri-Food Venture Centre.

”Mentors are great for either confirm ing what you’re thin king or challenging it ."

Hannam says that business owners can also reach out to another business person — someone they admire and can act as a mentor, or recommend who they have worked with for business advice.

“Mentors are great for either confirming what you’re thinking or challenging it,” he says, but cautions that these are busy people too, so if more in-depth help is needed, it’s better to hire an advisor.

– Additional information about food brokers and how to choose the right one is available on the Ontario Ministry of Agriculture, Food and Rural Affairs website at omafra.gov.on.ca/english/ new/food-broker-dist.htm

Finally, Hannam says that meat plant owners should think about the value of having good advice and a good plan. Then, determine how much they’re willing to invest. Depending on the outcome they want, it could be just lunch with a mentor, a $5-10,000 consulting project or something longer term.

“A business advisor is like any other professional service that you pay — for example, an accountant or a lawyer,” he says.

"They bring additional knowledge and that outside perspective".

Rob Hannam

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Meat Matters

FALL 2017 — VOLUME 01

GOVERNMENT FUNDING DEFRAYS COST, HELPS MEET GOALS Kevin Stemmler knows a thing or two about successfully obtaining government grants, after having received close to $400,000 over five years.

Stemmler's is an artisan gourmet meat manufacturer that has been producing a wide variety of meat products, including glutenfree options for 32 years. A 17,000-square foot manufacturing facility located in Waterloo Ontario, is a recent addition to the company’s 6,500 square foot retail and manufacturing building in Heidelberg Ontario.

“We wanted to get further into supplying local meat products to the broader public sector — including the school system,” Stemmler says.

“So we needed to ramp up our product lines.”

Altogether, the expansion project cost slightly more than $3 million, took 10 years of savings — the family shareholders deferred some dividends in favour of an expansion fund — several years of planning, and the help of many people outside the company.

Alex Barlow of Mentor Works Ltd. — an organization dedicated to helping businesses obtain government funding so they can grow — was one of them.

Barlow worked with the Stemmler's to determine what their needs were, what programs would best meet those needs, and write the applications for the funding.

The Stemmler's have had a very positive experience with Mentor Works, having received cost-share funding from both the federalprovincial Growing Forward 2 program and the Greenbelt Fund, a not-for-profit organization financed by public and private sources.

While the Growing Forward 2 program is wrapping up as of March 2018, Barlow is hopeful that the next generation program “won’t be drastically different” from the current one.

“There will always be funding for projects related to improving productivity, adopting more automation and launching new products — usually around equipment,” she says.

“Government is looking at how the changes can grow businesses and in turn, grow jobs.”

For the Stemmler's’ expansion, it started with a feasibility study, which produced some surprising results.

above: the stemmler family right: alex barlow of mentor works

“We fully expected to add on to our current facilities — but it turned out it would have been the worst decision we could have made,” Stemmler says.

The family actually didn’t believe the first study’s conclusions. But three studies and a year and a half of crunching the numbers later, they were convinced that obtaining a long lease from the landlord of the new facility was the best way to go over the long term.

The company also received funding for computer systems, software, packaging, production machines and a smokehouse.

Stemmler advises others to be patient and take as much time as is needed to get a proper application together.

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TO THE NEXT are key to making sure the At Schinkel’s Legacy, planning, patience and communications one generation to the next. meat processing business will make a smooth transition from longKevin Schinkel’s father Tim started thinking about the d 50. term direction of his business in 2011 when he turne ear five-y of s serie a in latest He was just wrapping up the g minin deter – plans and felt he was at a crossroads whether to grow and expand the business or to maintain it and move into retirement.

“Planning is a thing he really believes in – it’s one of the main reasons we’ve been able to stay on track and be successful,” Schinkel says.

After thinking it over, Tim Schinkel asked his children whether they were interested in buying into the business.

Before getting to the application itself, Mentor Works advises companies to start planning far earlier in the process — at least six months in advance of, say, buying packaging equipment.

“Businesses should think strategically about what they want to do in the next three to 24 months,” Barlow says. “The lack of a proactive funding plan is the biggest mistake we see companies making.”

For the Stemmler's’ application, Kevin says that they had to be rigorous about pinpointing why they were interested in supplying schools, long-term care facilities and hospitals, and how they were going to do it.

“We had to demonstrate that we were serious about going after the market, and show the relationships we had already built up,” Stemmler says, adding that he didn’t mind having to do the hard work, because “it’s public money — they want to see that it’s being spent properly.”

ors, about. He recommends investing in professional advis ts tmen inves rtant impo most because “it could be one of the much you cost to you make and if it’s not done right it’s going more down the line.” structure and “The hardest thing to nail down was the ownership ions for the decis make how we wanted it to finish – who would ple, in the overall business and in specific situations – for exam he says. event of a recall or securing financing in the future,” all the legal Other difficulties he struggled with included learning end year fic complexities of the business – like planning speci g and dates, tax implications and legal repercussions of buyin ls detai the with ed helm overw selling. He says it’s easy to be do to rtant impo it’s but and ‘legal speak’, some have can the work, because they major implications in your business and structure down the road.

There are many complex layers and important aspects of transitioning a company that is run by one person to a group. Schinkel says that getting it right meant the family had to pull together as a team. It also meant having advisors who really listened to their needs, were experienced enough to be able to fully explore the possibilities, and were able to capture in writing the family’s goals and plans.

Barlow agrees, and cautions that applications take a while — 90 to 100 days — to get approved, and the funding is provided after the work is done and invoices submitted.

Barlow’s job, networking and contacts mean that she knows the latest on what’s happening in Ontario manufacturing in terms of food safety, technology, equipment and more, and can help guide business owners to finding solutions that work for them.

left: the stemmler family

FALL 2017 — VOLUME 01

“Nothing is done in a short amount of time — you have to plan ahead,” Stemmler says. “You can’t think straight when you’re rushing.”

A funding plan is part of a strategic plan that describes priority projects that could use government help — whether it’s expansion, capital investments, research and development or hiring and training. With a plan in place, when new programs and opportunities arise, the business is better positioned to take advantage of them.

above: w stemmler's neg manufacturin facility in waterloo

Meat Matters

They were interested. Kevin had been working for about a year and his brothers had both been in it for three to five years.

The family reached out to Synthesis Agri-Food Network, a private consulting firm, to help determine what the company would look like with the kids as owners in the company. They also had their accountant and the lawyers at Siskends contribute throughout the process.

Schinkel says that having an objective consultant on-board drew out all the different issues and concerns that they wouldn’t otherwise have thought

“There are lots of options, and ways to tailor the plan to your specific needs,” he says. Today, Tim is still president, Kevin is in charge of production and operations, brother Matt handles Finances and Programs and brother Thomas is in sales.

" The hardest thing to nail down was the ownership structure and how we wanted it to finish − who would make decisions for the overall business..."

It took the Schinkels two and a half to three years to iron everything out. That’s about twice as long as Kevin figured, citing having to deal with running the dayto-day operations of the business as part of the reason for the time involved.

“Everyone needs to be to set up able to voice what they need and want, and you need meetings to do that – even if it’s after hours,” he says. his or her Schinkel’s advice to anyone thinking of transitioning rush it don’t business to the next generation is to start early, that there and take the necessary time, hire outside help, know the will be hiccups here and there, and make sure you keep communications lines open.

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Meat Matters

The competition was tough but the meat was delicious as 115 entries from Ontario Independent Meat Processors’ membership vied for coveted prizes in 2017.

Platinum, gold and silver awards were presented to 44 products in the 2017 Ontario Finest Meat Competition™ across 14 categories. The competition is held every two years.

The Ron Usborne Award of Excellence was presented for a third time to VG Meats for the most points accumulated in the competition. The Diamond Award was presented to Halenda’s for producing the item with the top score across all products, Double Smoked Bacon.

Ten judges for the competition included well-known chefs, nutritionists, bloggers, writer/broadcasters and food experts.

Award winners include: Platinum Gold

nt during le a t f o p u e n impressive li n a f o p ted at the o n t e n s e o r t p u s o a e w iup cam n. The award io it t e Damian Gor p m o c Butcher r 21, 2017. t e s b e o t in c F O ’s n o io r la Onta t Awards Ga rs, who did e p r a C d e with his pee R te e P p m IM o c O to 7 201 was fun

Above: This year's winner

Damian Goriup

at afternoon nal round th fi e th in ff o floor Goriup faced o tradeshow p x E ry st u d Quality In Herrington’s on the Meat m o fr n to g in k from t Herr olas Matusia h against Bren ic N d n a y, Port Perr Butchers of Oshawa.

Halenda’s of leg of rnish hens, a o C o tw d e iv several ts rece , to prepare tt u All the finalis b in o rl si beef top They were lamb, and a ready items. y la p is d g in ok eir finished incredible-lo me up with th o c to r u o -h half intense! only given a petition was m o c e th so products, dees’ nd the atten a re o sc ’s e g ould Both the jud oriup who w G s a w it d e in votes determ our. n o h e carry th in 2014 e final round th to it e d a Goriup m d acted as k 2016 off an o to , 15 0 2 d an e it all in turned to tak re n e th , e g jud s Florence and operate s n w o e H .

2017 ness his kville, a busi Meats in Oa go. d 40 years a father starte what be proud of to e v a h u o “Y t u can excel a you do so yo is h f o ,” he said what you do that it g in ent, add accomplishm

BACK BACON Franz’s Butchershop & Catering Maple Back Bacon

o.

a great job, to

h all can deal wit o h w s u f o ger that many ach the youn te to t n “There aren’t a rt o s, so it’s imp kinds protein said. people,” he has been competition r e h tc u B st e nts is issued Ontario’s Fin ll for applica a c A . rs a e y ur (OIMP) running for fo t Processors a e M t n e d n swered depe ompanies an c to Ontario In 12 r, a e y is an July. Th butchers for st e b members in ir e th rd put forwa the call, and mber. und in Septe elimination ro utes had thirty min rs to ti e p m o c ation, g, bone-in During elimin rk bone-in le o p sh e fr a ble cuts to transform merchandisa to in , in lo n -i degree of ne butt, and bo dged on the ju re e w y e h , trimming e. T vel in boning of their choic le ill sk d n a rmance. ciency nancial perfo fi d difficulty/effi n a se u t primal cu o. All the and cutting, the Meat Exp to t n e w ts lis a onated to The three fin round was d n o ti a in lim e the pork used in s. k food ban

Stemmler Meats & Cheese Cured Pork Back in Cornmeal V G Meats Smoked Back Bacon

FLAVOURED SIDE BACON Stemmler Meats & Cheese Pepper Bacon VG Meats Cowboy Coffee Rubbed Breakfast Bacon Sikorski Sausages Porchetta/Slow Roasted Pork Belly Roll

TRADITIONAL SIDE BACON Halenda’s Double Smoked Bacon Halenda’s Ukrainian Smoked Bacon temmler Meats & Cheese S Double Smoked Bacon

BEEF WHOLE MUSCLE DELI Halenda’s Montreal Smoked Brisket G Meats V Beef Pastrami G Meats V Chipotle Rubbed Roast Beef

Righ This year's winnet: r Damian Goriup (l ef t) with previous win ner Peter Baarda (rig ht)

COLD CUTS - DELI MEAT Sikorski Sausages All Beef Salami Stemmler Meats & Cheese Fire Roasted Red Pepper & Olive Oakville Meats Tiroler Salami

HAM - BONELESS VG Meats Boneless Country Style Ham enninger’s D Smoked Maple Black Forest Style Ham S ikorski Sausages Hetmanska Ham

KIELBASA L 'Orignal Packing Kielbasa V G Meats Turkey Kielbassa S ikorski Sausages Polish Ham Kolbassa Ring

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ner 15, and 2016 win Above: 2014, 20

Peter Baarda

Silver

POULTRY WHOLE MUSCLE DELI VG Meats Smoked Turkey F inest Sausages & Meat Finest Spiced Turkey H alenda’s Homestyle Turkey Breast

PREMIUM DRY/DRY CURED P aganelli’s Salumi Wild Boar Capocollo alenda’s H Lacshinkin P aganelli’s Salumi Lamb Prosciutto

PREMIUM WIENER H alenda’s Veal and Chicken Wiener G Meats V Beef Wiener S temmler Meats & Cheese Jumbo Beef & Pork Wiener

SALUMI - CHARCUTERIE Sikorski Sausages Petite Pepperette P aganelli’s Salumi Gentile Salami Sikorski Sausages Dried Krakowska

DRY / SEMI-DRY SAUSAGE Karlovo Beef Sudjuk avergne Western Beef L Hungarian Csabai enninger’s D Hungarian-Style Csabai Salami

SPECIALTY SAUSAGE Franz's Butchershop & Catering Smoked Curry Mango S ikorski Sausages Debrecyna BBQ Sausage with Cheese Stemmler Meats & Cheese Texas Jalapeno with Cheddar Sausage

TRADITIONAL SAUSAGE Oakville Meats Farmer’s Sausage Mild Sikorski Sausages Debrecyna BBQ Sausage

Peter Baarda:

Ontario’s Finest Butcher FOR 3 years!

Peter Baarda’s persistence and precision have paid off over his 28 years in the meat cutting business – so much so that he won Ontario’s Finest Butcher competition for three years running.

While his first two wins in 2014 and 2015 were under the auspices of his previous employer, Lococo’s, he achieved the 2016 award under his own company’s banner - J&G Quality Meats in Burlington.

“It helps build trust and break the ice with new customers,” he says. “It also sets up expectations for me to always be coming up with something different.”

"Be s check ou ure to t all th competi tion act e ion on our Y o u tube channel : Ontari o Meat & Poultry !"

Baarda really knows his stuff. Out of high school, he worked in a small abattoir that processed 60 to 80 hogs, 30 to 40 cattle and a dozen lambs a week. He learned everything from the ground up - from slaughtering to custom cutting to curing.

Later on in his career, he worked for high-end processors like Cumbrae’s in Toronto, which he says was great training and where he really honed his skills.

Now that he is an owner, he’s encouraging the next generation by entering his employee, 21-year-old Josh Llewellyn in the 2017 Finest Butcher competition.

He also highly recommends that other shops enter their butchers in the competition.

“It’s a great way to show how much you take pride in what you do,” he says.

Halenda’s Kranska

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Hiring and ret aining employees in a ti ght mar ket Title

FALL 2017 — VOLUME 01

Times are tough if you’re a meat processor trying to attract and retain employees, but there are a number of things owners and managers can do to maintain a stable workforce, according to Jennefer Griffith, executive director of the Food Processing Human Resources Council.

There is a chronic labour shortage in the meat industry, with 1,800 vacancies in plants across the country, she says. The industry is hurting.

This is why Griffith is working with the Ontario Independent Meat Processors (OIMP) and others on a study commissioned by the federal government to find out who’s available domestically to the industry for employment.

“There’s a definite lack of meat cutters, but we also have a million people on employment insurance,” she says. “We’ve been tasked with getting evidenced -based data on the current supply - who can work, who has the skills to work or who doesn’t want to work,” she says.

The project started in January, 2017 and runs for 18 months.

Hire an agency Griffith says that some companies hire HR agencies to come in, assess the meat plant and figure out why they’re having a problem with, say, constant staff turnover or training people who don’t stay on the job.

These agencies can find out what the problems actually are and help resolve them.

“We know that some companies are doing just fine – so we want to know what they’re doing differently,” she says.

Some of the practices are:

Build a positive work culture Having an upbeat atmosphere at work is essential to keeping people on board. Griffith cites one company she visited to interview a number of employees and management for the study.

“When they went on break, they were all laughing and happy,” she says, adding that the company has a buddy system for new hires in which they are matched up with more experienced workers. It also has work teams that get together after hours for barbeques, potlucks and holiday events.

Griffith says that it’s crucial to demonstrate to employment prospects that if they work hard and can prove themselves they can move up the ladder. As an example, she cites a young woman she interviewed who, at the age of about 24, is a supervisor on the slaughter floor at one plant.

“She had been on the culinary side of the business, but was attracted to meat cutting,” Griffith says. “The steady hours, benefits and having more time for her family were what made her decide to make the switch.”

When they’re looking for a job, millennials (17 to 34 years old) like to see their peers talking about their work experience.

Griffith recommends plant owners encourage their younger employees to help with promoting the culture of the business, highlighting job security, training and advancement opportunities and what it’s like to live in the community.

Training a must Investing in employees by paying for training makes a big difference. Griffith says that millennials especially value training and being empowered in their workplaces. She notes that some employers go to great lengths to support staff – footing the bill for courses in business leadership, logistics, supply chain management and more.

“There’s a direct link between the bottom line and food safety,” says Kevin Thompson, CEO of Sargent Farms.

Sargent Farms has 260 employees in two main sites – a primary processing plant in Milton and a further processing plant in Mississauga.

them to the people on the floor. When the relationships are strong, the employees can also provide feedback that can then be used for improvements.

Food safety is an integral part of day-to-day operations at the company, and maintaining it not only benefits the product quality, but also the effectiveness and efficiency of the business, he says.

“Certifications are great – but we need to see them in action in the plants,” he says.

The successful chicken processing company was the first in the province to be registered under the Hazard Analysis and Critical Control Points (HACCP) program in 2004, and has stayed on the forefront of food safety ever since.

Ask younger employees to help

Provide for advancement

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Besides gathering supply information, Griffith is also collecting best practices from the business owners she’s interviewing.

fOOd safety culture means quality prOducts, better business

“Any systems or tools that we can put in place to maintain or enhance food safety are not nice-to-haves, but essential - and the side benefits are quite extensive,” Thompson says, explaining that the monitoring aspect of HACCP provides a perfect opportunity to keep track of productivity as well.

HACCP remains the key component of the food safety system, and Tewari says the control points are reviewed at least every six months as to their relevance. Occasionally some may be added and some may be dropped, depending on the outcome of the reviews.

“Food safety should not be seen as a regulatory requirement or a burden.

It should be integrated with everything the company does.”

Pay well Many entry-level jobs in meat processing are already paying more than $15 an hour and most start at $18. Some companies have also offered to pick up relocation expenses for employees and subsidize rent for an initial number of months.

Sell the lifestyle

– The Food Processing Human Resources Council has a number of programs and information to help meat processors with their staffing needs.

Its website is FPHRC.com

“On a practical level, we talk to our staff not about being a chicken processor or abattoir, but rather that we’re in the business of producing food,” Thompson says. “That resonates, because we all think about eating and feeding our families. Everyone wants to ensure their families are eating safe food.”

Many plants are located in rural areas where the housing is less expensive than in larger cities and the lifestyle may be more attractive to people looking to, for example, raise their families. Having good benefits and a steady paycheque also helps them see the advantages to living in rural.

It seems to be working, given that the company has been selected by Canadian Business magazine as one of Canada’s Best Managed Companies for seven years running, reaching the Platinum level in 2016.

The company’s dedication to food safety comes from the top, with Thompson actively involved in the HACCP team and sitting in on monthly quality assurance meetings whenever possible.

“Food safety should not be seen as a regulatory requirement or a burden,” says Gaurav Tewari, Sargent Farms’ Director of Quality Assurance (QA). “It should be integrated with everything the company does.”

Tewari says it’s crucial to train QA staff in implementing food safety programs, technology and systems so they can translate

Any additional programs, technologies or practices that are required are built on the HACCP foundation.

While the plants are provincially-licensed, Tewari also keeps an eye on outcome-based approaches coming from the Canadian Food Inspection Agency and implements them if they make sense.

To him, the job of maintaining food safety is never done, and he’s constantly looking for technology and products that can improve the systems at Sargent Farms.

“Food safety is an ongoing process,” Thompson says. “It’s not like you put in a program and walk away – there are always things that can be improved or done in a better way.”

For Sargent Farms, creating a culture of food safety not only helps produce a high-quality, trusted product, but also maintains a healthy bottom line.

Building a Food Safety Culture:

IDEAS FROM THE AMI FOOD CLUB LEADING BY EXAMPLE IS CRUCIAL TO SUCCESS.

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From the CEO to the staff on the floor, developing an excellent food safety culture means everyone in the company understands and embraces how their actions contribute – both within and outside the company.

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THINK BIGGER THAN FOOD SAFETY.

Consider how people interact with each other, how important messages get passed along and how feedback is given in your organization. Positive, "effective communication needs to happen top down, bottom up and peer-to-peer. How are you contributing to an atmosphere of trust and confidence in employee behaviour?

MAKE IT RELEVANT.

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To help gain understanding from company staff, learn to talk each department’s language. For example, explain food safety in terms of dollars to the CFO and CEO, in terms of shippable product to production and shipping staff and so forth.

Getting people to understand food safety in their terms makes them see their participation as more concrete and achievable.

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SET UP KEY PERFORMANCE INDICATORS.

If they help develop the measurables, staff will be more likely to be interested in achieving results. Outcomes related to food safety and quality can be: days without a customer complaint; or per cent of product meeting or exceeding specifications. If milestones are met, celebrate the success with frontline staff. What do you do to show the importance of these outcomes?

make sure it is embedded in all departments.

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Purchasing, maintenance, sanitation, R&D and others have key roles to play and each person, including temporary employees and contracted crews, needs to know that food safety is part of everyone’s job. How broad-based is your food safety team and how have you included food safety in job descriptions?

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BE PREPARED FOR SETBACKS.

The path to a food safety culture is not straightforward. There are many decisions and choices with high and low points. What’s important is to keep pressing forward with talking, teaching, and learning from others who have achieved success.

– Interested in Joining our Food Safety Club? We are actively seeking QA Managers to join and learn from peers how to effectively improve food safety culture in your operation.

Email Ashley Honsberger at Ashley@takeanewapproach.ca for more information.

T N I O G O T Y A W THE

says Dana Thatcher. ,” ia ed m al ci so on ’s “Everybody t d fast way to reach ou an al ic om on ec e, pl m “It’s a si le It’s also been a profitab ” s. er om st cu ge ga en and r-old company’s ea -y ve fi e th to ng ti bu choice, contri substantial success.

The BFO developed the program to capitalize on the current local food movement and meet the demand from city consumers for local protein. The organization has even produced a handbook about the online business model to help farmers who are interested in selling directly to their customers.

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Practices

A I D E M L A SOCI INE MARKETS AND ONL E G A L A T I G I D E H

FOR LEVERAGING

SOCIAL MEDIA

CHANNELS

Tait was one of those farmers, because he wanted to get more value out of his livestock than he could by selling the animals at stockyards.

“We’ve had a website since 2013, and we had the online shop in the plan for a couple of years,” Tait says.

He has 45 cattle and 50 ewes on the farm. He ships two cattle a month and a lamb a week for slaughter to Highgate Tender Meats, where he and his family have had a ‘great relationship’ for years.

Strong communications with the processor mean that Tait is able to supply his customers with exactly the kinds of cuts they want – which brings them back again and again.

On the other end of the supply chain, Tait sells beef to the Talbotville Berry Farm Market, a customer that found his business through social media. He also supplies Tasty Sweets Café and Bakery in West Lorne and his lambs go to Chris’ Country Cuts in London’s Covent Garden.

The Taits are active on Facebook and Twitter – platforms on which ‘lots of people’ contact them to buy meat. Maryjo has even posted a YouTube video demonstrating how many and what kinds of cuts customers can get in a quarter of beef.

They’ve become so popular that Tait says it’s been tough to meet the demand, and they’ve had to ‘pump the brakes’ a bit to ‘allow things to grow more sensibly.’

Thatcher and her husband Adam own Thatcher Farms Butcher Shop and Bakery, located on 150 acres northeast of Guelph near Rockwood, Ontario. It’s a unique combination of a working livestock and crop farm, a butchery, bakery and retail shop.

They also sell their products at the Guelph Farmers’ Market.

“Things are really going well – we have loyal customers and an awesome staff,” she says, adding that social media lets her authentically tell the story of all aspects of the enterprise.

to visit the farm and buy her products.

Of course, she adds, the Thatchers have to make the drive worthwhile once they arrive.

While she’s a big believer in the power of social media – it’s the only advertising she does – Thatcher says it takes a lot of effort. She’s a busy mom with three children and does most of the office work for the business, so posting daily on each of three platforms – Instagram, Facebook and Twitter – is a bit of a chore. But it’s proven effective.

The Thatchers added an online shop in early June, 2017, selling pre-paid five pound and 30-pound box lots of pork and beef, and were looking forward to adding more items.

“When I do a post that says a cut of meat is on sale, it’s gone,” she says, adding that tickets to the special events they organize, like the Father’s Day Blues Beer BBQ they held on June 18th, sell like hotcakes. In her posts, Thatcher makes a point of ensuring she profiles every part of the business from farm to retail, and she targets families, because that’s the market she most wants to reach.

Through social media, Thatcher says she can tell the story of her family business to, and engage with, hundreds of customers who come from as far away as Orangeville, Oakville and Toronto

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ROB & MARYJ O TAIT

Rob and Maryjo Tait have had an online store from which they have sold their farm-raised beef and lamb since the fall of 2016. They own 300 acres of land known as Celtic Ridge Farms, located southwest of London near the community of Dutton.

Their ordering process goes like this: customers order cuts of beef, lamb and sausages. The Taits calculate the final price and send an email back to ask for confirmation of the sale. The customer then arranges to pay for the order either by e-transfer or cash on delivery and arrangements are made for shipping the package to the home.

Tait says they got involved in the online store through the Beef Farmers of Ontario’s (BFO) “Farm to City” program which makes it easier for people in urban areas to obtain locally produced meat.

Set measurable goals — establish objectives that can be tracked and measured. That way, you can focus on winning strategies and change it up when you need to.

Choose the right network ­— whether it’s Twitter, Facebook, Linked-In, Google+, or a combination, find out where your customers hang out, and go there.

Brand your social media profile pages — Over all your platforms, make sure the look, feel and tone is consistent. It makes it easier for customers to identify your business.

" When I do a post that says a cut of meat is on sale, it’s gone..."

Monitor social media analytics — Check in weekly to see if your goals are being supported. There are several methods for doing this — through Hootsuite, Buffer and Google Analytics.

There’s no shortage of ambition in the Tait family – besides having two young children, running the farm and the retail business, Rob’s a full-time high school teacher and Maryjo has a day job at the Ministry of Environment and Climate Change.

Quality over quantity — More is not necessarily better. Make sure your posts provide something your readers/customers want and engage with your followers.

Tait says that the next step in the business’s progression is to start an online subscription service, so they can get more consistency in terms of monthly deliveries, rather than having to wait for orders.

Both the Taits and Thatchers are young, up-and-coming entrepreneurs who are tech-savvy and making great strides for their businesses in the online and social media worlds.

Know your competition — Stay current with what others are doing in the industry in terms of branding, popularity, frequency of posts, engagement and types of content.

Be patient and give it a shot! It takes time to develop a following and the kinds of relationships that produce results, but in the end, it’s worth it.

– Credit: Sonia Chopra Gregory, FreshSparks

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Meat Matters

Monitoring Costs Helps Manage Them

Richard Halenda decided 10 year s ago to electr monitor all his onically track costs and the p and ayoffs have bee he’s never looke n so significan d back. t,

“We get detailed production results daily,” Halenda says.

“With the system, we are able to continuously improve, know our costs, and price products correctly to get a fair return.”

Halenda owns Halenda’s Meats, an Oshawa-based company with two provincially-licensed plants and seven retail locations throughout the Durham Region and Greater Toronto Area. He also wholesales 100 different products right across the province.

The software system he bought monitors costs at every stage of the process, from receiving to disassembly of whole muscle meats, reassembly into sausages, cooking, smoking, packaging and weighing.

At first, the system had to be modified to fit the needs of his processes, and it took about six months for his employees to get used to working with it. A decade later, though, the processes run smoothly, and staff are able to chase down errors and deviations before they become big headaches.

Before this technology was available, the ingredients per product and their current costs were recorded in a spreadsheet and an expected labour cost per item was added based on historical averages. But the system was stagnant and didn’t allow for things like constantly changing prices.

“We used to judge our success by the buildup of cash in the bank, but the problem with that is that you don’t know what part

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of what you did is working and what part isn’t, or can be improved on,” Halenda says.

Bruce Cowper, President of Mallott Creek Group in Elora, agrees. His company consults with food processors to meet their engineering, business development and food safety needs. He says owners and managers should know the cost of everything that’s happening in the plant – even down to how much they’re paying for pencils.

“The first thing our industrial engineers do is look at product flow – how does it move throughout the organization – what parts are value-added and what parts absorb costs,” he says.

His main advice is to ‘walk your product’ through the plant – look at every stage of the process, determine where value is being added, and if it’s not being added, there are costs being incurred, so these should be noted.

Another factor is yield – every time there’s a piece of meat taken off, it needs to be valued and that value has to be factored into the final price of the product.

For example, for a 10-pound loin that costs $50, the end-product tenderloin and every piece of meat comes off of it in the process has to be priced in a way that recovers at least that original $50.

“The meat industry is different that way – with muffins, for example, it’s easy to cost out all the ingredients, because you’re adding them together – with meat, you’re taking pieces off,” Cowper says.

He says this industry is the also the only one that sells product before the input price is known, making it doubly important to keep an eye on commodity prices, and reduce costs as much as possible.

Among the other factors to consider are labour, distribution, equipment and utility costs.

Cowper says a simple way to figure out how much owners are spending in the plant is to take the total costs from last year’s financial statements and divide it by the total volume sold. This way, owners will have a basic understanding of their per-kilogram costs.

While Cowper thinks that automation is a good thing, he cautions that, in the meat business, there needs to be a return on investment in less than one year.

While he understands the need to invest, “I’ve seen a lot of machines out there that I don’t see how they’re ever going to make money with them,” he says.

For Halenda, his investment in his software system has more than paid off in efficiencies. As an example, he says that, although his business is five times the size it was 10 years ago, his accounting department isn’t any bigger.

He advises anyone looking to make major technological change that senior management has to be on board and that a champion is named to steer the transformation to a successful conclusion.

“You have to have someone driving the charge,” he says.

WORKING WITH LIVESTOCK COMMODITY ASSOCIATIONS Beef Farmers of Ontario

Ontario’s commodity associations are attuned to the needs of their members and are providing advice and initiatives that benefit both farmers and processors.

PigTrace is a live a nimal tra moveme ceability nt of pigs initiative across th case of a aimed at e province foreign a track nimal dis and the c and the p e ountry so ing the a se outbre roblem r calves. Sh that, in esolved q ak, the so e cites th u u ic r is can ha c k e a ly round Ea c . a “If we ca n b e ppen fo ster time und n track t , when p a h r e e animals, quicker, b u s y la w nts ith lambs we can s and ever and goat top the s yone in t sooner,” s s. pread of he indus ays Frank “Most of try ca disease Wood, O the time, industry “We needed to mitigate challenges with ntario Po n resume normal services. it ’s giving th a matte rk’s mana b Wood sa e farmer need to v declining beef production and increasing ger of me usiness ys that u s a heads r of erify that k e e p n m in d -up and ber and er the pr g them in animals h is availab competition from imports,” says John ogram, m formed,” ave been le to help For more e K a e d t els says. e m p li t la e in v h a n e e fo t plant ow ts red, and steps of t Baker, who runs the RMI for Beef Farmers rmation out onta adds tha ners and on veal, c he progr r t io h a m heck m. e veal.on.c anagers w of Ontario (BFO). “Plus, right now, there’s a alk throu Ontario P gh ork also a high preference for locally-produced ha designat e meat th s a branding prog beef in the province.”

Chicken F r at has be and grey en raised am that uses labe armers of check m ll in in a g O rk to fresh, hig ntario. T Ontario Chicken he green h-quality shows customers F c a ir p t r h a r c m a o n le t e d d r t u h r s c etailers c e produc of Ontar “ A healthy processing sector New Ent an partic t grown close to io’s (CFO t is safe, rant Chic is availab home. Pr ) ipate in t k en Proce is le at onta a o h im c e e e p s d s r ssors Pro o o at ensurin gram, an rs riopork.o is important to Ontario beef gram d inform n.ca. g the On managem Finally, A ation tario sup ent syste sh says t p ly m d is able to emand fo hat Onta farmers and a vital link to and indu fill consu r niche a rio Pork stry part n mer works to accordin d specialt ners dea activism g to Mike support y produc ling with and prot creating demand pull for p P t r s, od hilp, who program challenge ests. “We guidance for CFO. supports s, includin ucers can offer to help p t h g e a c n o r im m e vent situ municatio al Ontario beef from the farm “The cur ations fro ns advice r e m escala n and ting,” she processo t program is aime Ontario Sh gate through to the consumer.” says. rs only,” h d e says. “W at primary smaller p eep Marke e roc also prov ting Agenc id ideas and essors with supp “Process − Beef Farmers of Ontario website y ort for th e ors are th to drive t eir heir busin e linchpin Martin G esses for o ooch, CE Every ye ward.”

O of VCM f the meat indus that help ar, CFO c A total of $600,000 is available try,” says Internatio s busines o n s t h u e lt s n in s e a w dustry to s develop l, a consu and supp ith memb each year over three years for liers. Goo help dete lt better re market s rmine wh ers of ch was c lationship ing company Marketin e g projects that meet the program m ent need ontracte at strateg s with c g Agency to the pr d by the s suppor ic (OSMA) t sheep an ogram ar Ontario S ustomers t objectives. Farmers, processors, , a n o develop d d lamb p a p e p s h li h c e c o e e a lp r p n r a e oduction ts d higher fill that n growth s distributors, industry associations if they in 2017. trategy fo eed. Last Farms ob Among h y r e a r , Y t is orkshire ained ch and supply chain partners are major re Valley icken sup commen productio improvin ply for it dations fo g the con n and in eligible to apply to have up to s o r growin 2 sistency rgan 0 r of the On 14 e ceived su , Sheik H g the sec of the pr tario lam alal Poult ic pply for a 50 per cent of their projects paid tor is oduct an b supply in ry Farms s pecial ty which th d the pre to retaile pe of hala e meat is for through RMI. d ic “Process t r a s b a il n l b ity chicken d the foo rowned w ors need d service ith flame to provid Under th their lam sector. s . e feedba e bs are pe P Baker says that the program can rogram, ck to pro rfo 100,000 CFO mak “The ind ducers a kilogram ustry nee rming after they es u defray the costs of bringing new b o u t s h get to th ds system o o f q w about yie chicken a p to u o t a e p e p s r la t io ld o vailable p nt,” he sa d for new , for exam c meat products from concept to ys. er The supp to get th ple, and it apture and share or expan e ly d m up and in ing proce c wouldn’t market and lists such things as running.” successfu an be provided t require b formation ssors. o one or ig investm l applican consumer research, marketing, Big lamb m t o e s o r n , f e w t criteria, in s -producin ho must meet a n cluding h packaging and Point of Sale g countr Zealand e u x aving str ies like th perience and Aust ong finan mber e United with pro ralia have material. Applications are says is ke c tein proc be able t Kingdom effective y to their o meet C essing an ials, , New grading s available on the BFO website success, a d n a h y o d a stems wh r provinc and shou The new ial inspec ian Food Inspectio ve or ich Gooc ld be cop at ontariobeef.com growth s h t is n io ie Agency d n c h h a o p e s p r en, the 10 trat e in Onta roval. If n producer 0,000 kg rio. o applica s and pro egy includes feed v o lu m s nt e availab back reso cessors t performa le for the can be added to t o measur urces for nce. Mor h fo e e and mo llowing y e inform This year ear. nitor lam ation is a Ontario Pork , applicat bs’ vailable a io t ontario n 2 s 0 17 a re due by , and suc sheep.or Veal Farm cessful a Decembe g Ontario Pork works in the fir pplicants r 29, ers of Onta st half of w il l be inform 2018. Mik with meat processors rio help with ed Kendra K e Philp is a ap eels, dire vailable t on everything from at ontario plications and de ctor of in o the Veal tails are chicken.c dustry an Farmers available traceability to branding a. d produc of Ontar commun er develo io, also s ication b to dealing with animal ays that k pment at etween p supply n e e p r ing clear ocessors eeds, are Turkey Far activists. lines of and prod crucial e mers of On ucers, an lements d plannin to suppo “Our farm tario r g t e in T rs really he Turke g the vea “Their success is need tha seeing w y l in F a dustry. rmers of t ith the lo dedicate critical to our success,” Ontario (T ads and t feedback in term d to mee on — for FO) o s e ting the n ll o e in f xample, if what the m g them w e says Stacey Ash, a t p eeds of b rganization is lant own y’re hat they the finish there,” sh e oth r s c e says. by raisin a isn’t ther the diver communications g consum producers and e or the c n improve sity of tu er aware o r key prod lour’s no manager at Ontario She says ness of t ucts as m overweig M e a al option rketing C hts are a Pork, referring to has to ha s. o o r big proble dinator E ve a dres idea is to mily Dan m in the sed weig d the importance of even 180 r iv e a t in rd says th urkey sale ht of less dustry — .1 kg, the recipes a e than 180 s by deve veal meat can nd demo sold as u supporting meat kilogram lo ’t be sold ping inno n ngraded s t n r u a s t t r in . it If a g io vative s it b t nal choic hat turke veal, and ’s eef — for and com processors. e that ca y meat is which th it has to mands a n o t ju n b e s a b t e re somet much low tasty, e enjoyed during th get dock ime er e holiday all year r ed in the s. o money th price. Farmers als s isn’t a market, u nd — The #Tu o sometim ey receiv rkeyONT “It would e e fo s r t h o e animal. ur trailer help if pr stores, fe ocessors is a stivals an whether set some d and whe other eve crowd-pleaser at T h is year, bre paramete n they ca nts throu grocery says, add ast meat n take ov rs around ghout th ing that s Sesame T w a e s r o w e o n e p m urkey Go ight calv the menu rovince. beef whe e proces es bbler rec n there’s sors can buds and ipe that t , with a Crispy Le a shortag sell on un ,” Keels d r iv e s mon sales of t empts co e of prot graded having th Planning he produ nsumers ein on th e trailer ahead an c e t t a . m s A te c a n o r y k m D o e ne intere anard at e to their t. dp capacity Emily@tu sted in retail out would als roviding farmers r le keyfarme ts should with info o help. K when the rs.on.ca eels says r contact y have a TFO also that farm mation on plant load of c r and they u n s a e r a fo s lv o g ’re told a e d service et frustra and inde week befo s that will be rea program pendent ted dy for sla r re that th that help e s t taurants h a t highlight ughter s both ch e proces and cafet t u sor isn’t t ain r k ey erias dev includes aking elop men using sho options. Their dig us rt recipe ital mark social me eting mix videos an dia and o d online ther, rela banners ted webs for ites.

The Regional Marketing Initiative (RMI) is a new program launched this year to increase market penetration for Ontario beef brands, maximize the value of beef products and enhance consumer confidence in the beef industry.

MEAT MATTERS © 2017 AGRI-FOOD MANAGEMENT INSTITUTE. DESIGNED BY THE BLONDES – BRANDING & DESIGN.

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