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Canadian FoodIndustry Review

Guest Editorial:Moving on with the listeria investigation

pg.5

Bison industry report

Beast of the Heartland

Undeliverable mail return to: 7-1080 Waverley Street, Winnipeg, MB, R3T 5S4

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Volume 8, Number 1 January/February 2009

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5 Guest Editorial by Jim Laws

6 Beast of the Heartland: Bison industry report by David Elias

10 Canadian Food Industry 2008 Review by Kevin Grier

14 Heart-Healthy Pork from the Prairies by Alan MacKenzie

16 Cautious Optimism: New beef processing plant opens in Winnipeg by Alan MacKenzie

18 Opening Opportunities: Breakthrough trade agreement with Hong Kong

19 Relieving Economic Pressure: APP program

20 Assembly Line

22 Preparing for Audit Day by Bill Melville

24 Keeping Food SAFE by Alan MacKenzie

25 Maple Leaf Reaches Settlement Agreement

26 Industry News

28 Events Calendar

30 Cross Country News

32 OIMP’s Annual Meating Place

33 NAMP Guide a Must-Have for Meat Buyers

34 Final Rule on COOL

38 Meat Industry Business Watch by James Sbrolla

January/February 2009 CanadianMeatBusiness 3 meatbusiness.ca

| Guest Editorial |

PUBLISHER

Ray Blumenfeld [email protected]

EXECUTIVE EDITOR

Alan MacKenzie [email protected]

CONTRIBUTING WRITERS

Jim Laws, David Elias, Kevin Grier, Bill Melville, James Sbrolla

CREATIVE DIRECTOR

Krista Kline

FINANCE

Jerry Butler

Canadian Meat Business is publishedsix times a year by We Communications West Inc.

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E-mail: [email protected] Website: www.meatbusiness.ca

Canadian Meat Business subscriptions are available for $36.00/year or $72.00/two years and includes the annual Buyers Guide issue.

©2009 We Communications West Inc. All rights reserved.

The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher.

Printed in Canada.

ISSN 1715-6726

January/February 2009 Volume 8 Number 1

Let’s get on with

the listeria investigation008 was an especially difficult year for Canada’s meat industry with the fatal listeriosis outbreak

at Maple Leaf Foods.In late summer of 2008, when

deaths and illnesses were linked to his company’s processed meats, Michael McCain, Maple Leaf Food’s chief executive officer, did the right thing – he took complete responsibility for the outbreak.

By the end of the year Maple Leaf Foods very quickly resolved the class action lawsuit with a $27 million settlement. But Michael McCain was all alone. For details on the settlement, see page 25- Ed.

Four months ago, just before calling the federal election, Prime Minister Stephen Harper announced the federal government would launch an investigation into what caused the outbreak.

However, once the federal election was underway, our government went silent on the listeria issue and Canadians were left to figure out on their own what was going on. We in the industry associations were poorly prepared for such a rare event. Meanwhile the CFIA inspectors’ union leaders had free reign in the media with unresolved contract issues pushing them on.

What our industry really needed was a voice and a face that Canadians could rely on like we had during the BSE crisis and the SARS crisis. What we really needed was Canada’s chief public health officer to regularly update Canadians on the listeria outbreak and on the new rules that were being put in place at meat processing facilities.

Finally on Jan. 20 Prime Minister Harper announced that former Edmonton health authority president Sheila Weatherill would conduct the probe. Officials said the four month delay was due to complications in finding a suitable investigator, one with no direct links to food or product safety. The final report is due July 20.

I was reminded recently of the review of Ontario’s meat regulatory and inspection regimes in 2004 by

Justice Roland Haines. The stated purpose for the review was to strengthen public health and safety and business confidence. He made 113 recommendations in the report on approaches that can be undertaken by the government of Ontario to improve the system, including strategies for accelerating harmonization with the federal government.

It was a great report with a goal to set recommendations for improvements – not to lay blame.

So let’s get on with our listeria investigation. Let’s make it known to Canadians that this industry has and will continue to take full responsibility for the safety of the meat that it produces. Let’s get on with the investigation so that all the lessons learned can be shared with the entire industry so that this type of outbreak does not happen again.

Let’s show Canadians that we mean business when we talk about strengthening public health and safety and business confidence. They need to know that our industry has not sat idly by, that we have invested hundreds of millions of dollars over the years in food safety systems, laboratory testing, and in plant sanitation, equipment and packaging improvements. Let’s tell them that we need access to the same antimicrobials and food irradiation processes that our American competitors have had access to for almost 10 years.

But, most of all, let’s tell the investigator that never again should Canada’s incredibly competent public service leaders like our chief medical officer and our chief veterinary officer be the subject of any future communications black out, regardless of whether or not our country finds itself in a federal election, in a precarious minority government situation, or even with a prorogued parliament. Human health and food safety must trump all other issues.

Jim Laws is the executive director of the Canadian Meat Council.

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COMMUNICATIONS WEST INC.

January/February 2009 CanadianMeatBusiness � meatbusiness.ca

By David Elias

Romance, health benefits add to bison meat’s growing appeal.

Beast of the Heartlandhe Canadian Prairies, albeit plain to some, were once an endless smorgasbord of forage

to the continent’s largest mammal. A few centuries ago the mighty bison thrived in such abundance that one early explorer recounted “the plains were black and appeared as if in motion.”

Canada’s founders owe a heavy debt to this ruminant, and now a new generation of farmers is helping restore its former glory.

“These animals were here long before

we were, and they’re built for our climate,” said Canadian Bison Association executive director Terry Kremeniuk. “They’re a hardy, indigenous species that produces very high quality meat.”

Ninety-five percent of Canadian bison are ranched in their native stomping ground: the western provinces. Leonard Epp is a Manitoba producer who manages Rockwood Bison Ranch. A tour of his operation reveals the differences between managing cattle and managing larger, wild bovine.

“We can’t use three-wire fences that are typically seen on cattle farms,” said Epp. “We use a game fence like you might find in a provincial park. It’s stronger and more reinforced. Anything less won’t be respected by our animals.”

Grazing quietly inside their game-fenced pasture, they seem tame and docile, but farm-raised bison are still “wild” – with hair-trigger fight-or-flight instincts.

“You can’t walk up to a bison the way you can to a cow or steer,” said Epp. “Even

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inside my truck I’ve been rammed by a 2,500 pound bison bull which pushed me over five yards. They’re very fast and extremely powerful.”

Bison bulls are rarely, if ever, castrated and are usually sent to the abattoir when they reach 1,000 pounds. Bison cows are kept separate from the bulls, and generally take longer to reach their 1,000-pound processing weight. Epp also noted that Canadian bison are raised without growth hormones or antibiotics.

All of these factors add up to a more primal, rugged ranching experience, which reinforces among consumers the romance of this robust prairie animal.

Urban carnivores attackRandy Schechter is a co-owner of the

popular Energy Kitchen restaurant chain which has eight locations in Manhattan, New York. His business specializes in providing high-protein, low-fat meals in a “fast-casual” service and pricing format.

“Bison fits perfectly into our menu lineup,” said Schechter, adding the chain’s bison cheese steak is one of their most popular items. ”New Yorkers take care of their health. They’re very educated and they know what bison is, and that’s why they order it.”

The restaurant and hospitality

industries in North America and Europe represent the primary market for bison meat. However, retailers are ordering more and more each year.

For example, Germany and France are two countries with meat shops that increasingly stock Canadian bison cuts.

Agriculture and Agri-Food Canada (AAFC) is working with industry groups to expand foreign markets for bison.

AAFC recently teamed up with the Canadian Bison Association (CBA) to attend the world’s largest foodservice and hospitality event, the National Restaurant Association Trade show in Chicago.

“The response was excellent,” said Kremeniuk. “Consumers are starting to appreciate the quality of this product and they associate their impressions of Canada as a fresh, clean environment

with their bison-eating experience.”Does it process differently?On the meat processing floor, most

bison cuts handle similar to beef cuts. The proportions are different because the bison neck and shoulders are much bulkier than a heifer or steer. But overall, the two animals are physically very similar.

“The number of bison slaughtered in a full year is roughly what the Canadian cattle industry slaughters in half a day,” said Ron Wonneck, senior economist with AAFC’s Manitoba regional office. “This product services a niche market and has virtually no impact on the Canadian cattle industry.”

Because of its niche status, marketers tend to work closely with processors to ensure animals are cut to meet client’s needs.

“We only do custom processing to service marketers at our plants,” explained Yvo Schmucki, president of Canadian Premium Meats in Lacombe, Alta.

“We haven’t had much difficulty in marketing the byproducts from our bison processing,” he said. “A hide marketer purchases all of our hides and we use some of the offal for human products and other parts for animal products.”

“This product services a niche market and has virtually no impact on the Canadian cattle industry.” – Ron Wonneck, Agriculture and

Agri-Food Canada

January/February 2009 CanadianMeatBusiness � meatbusiness.ca

Since 2001, the number of bison slaughtered in federally and provincially inspected establishments has nearly tripled. Boneless bison meat exports have grown at roughly the same rate, but this burgeoning meat variety is still far from becoming a mainstream staple.

Bison production

The average pasture-grazing bison is built to convert low-protein forages like grass and straw into energy more efficiently than cattle. Yet similar to cattle, a bison’s finishing diet can be supplemented with grain to make them gain weight faster. A grain diet helps infuse the otherwise lean meat with higher fat content which makes it juicier and more tender.

Most bison cuts available in commercial markets all come from grain-finished animals, which is why the fat has a whitish colour. Grass-finished bison, raised entirely on a cereal-free diet, has a more tawny-coloured fat and is available mainly through farm-direct marketers.

The Canadian bison herd is over 200,000 head (compare that to roughly 15 million cattle).

A growing portion of Canada’s commercial bison are shipped as live animals to the U.S. for feeding or

processing with the remaining animals being kept in Canada for domestic processing.

British Columbia and Alberta each have three federally certified plants that process bison and Manitoba has one; no federally certified plant currently exists in

Saskatchewan. Bison are also slaughtered by provincially certified plants.

The CBA notes demand for bison meat is beginning to exceed supply and prices are expected to remain strong in the foreseeable future.

According to the 2006 census, Alberta raises nearly 100,000 head of bison, Saskatchewan 60,000, Manitoba 20,000 and B.C. 13,000. Another 10,000 head are spread across the rest of Eastern Canada – mainly in Quebec and Ontario.

“The modern-day commercial bison industry is only 20 years old, which is a blink of an eye compared to how long bison have roamed the range,” said Kremeniuk. “As business ramps up, with the support of the national and provincial bison associations, bison marketers, processors and other stakeholders along the value chain, including AAFC, we expect sustained growth over the next several years.”

As consumer interest in bison meat continues to rise, retailers and restaurateurs are expected to boost their demand for this product. Producers will be working to meet the demands of this growing international and domestic market, but it is a challenge that they welcome with open arms.

“The modern-day commercial bison industry is only 20 years old, which is a blink of an eye compared to how long bison have roamed the range.” – Terry Kremeniuk,

Canadian Bison Association

David Elias is a communications advisor at Agriculture and Agri-Food Canada in Winnipeg.

� CanadianMeatBusiness January/February 2009 meatbusiness.ca

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By Kevin Grier, senior market analyst, George Morris Centre

Canadian Food

he Canadian food industry was marked by contrasts and extreme volatility in 2008.

Changes in commodity prices and the exchange rate made it difficult to interpret pricing performances, and disparity among various segments of the overall food industry precluded generalizations. The following is a review of developments in the Canadian food retail and manufacturing industries with a focus on sales, pricing, and the impact of the exchange rate.

Supermarket salesBased on Statistics Canada data

through October 2008, it appears that supermarket sales likely increased by at least four per cent in 2008.

Canadian supermarket sales last year will likely total $69 billion, compared to just less than $66 billion in 2007. Total retail sales, not including autos and auto parts will have increased by about seven per cent in 2008.

On a year to date basis from January to November, grocery store prices increased by 3.5 per cent compared to the same period in 2007. That means that real tonnage through grocery stores in 2008 will likely have increased by about one per cent in 2008, a modest improvement over 2007.

Retail pricing activity appeared to pick up dramatically at the end of 2008, as average prices of food purchased from grocery stores soared higher in November compared to October.

Statistics Canada’s Consumer Price Index (CPI) measures price changes, relative to the base year of 2002, showing trends for the following categories: Food from Stores; Food from Restaurants; and All Items Excluding Food.

According to the CPI, grocery prices on average increased by 2.5 per cent in November compared to October. November 2008 average grocery prices increased by nine per cent compared to November 2007. The grocery performance compares to a year to date change of 2.4 per cent for all items, excluding food. Prices for all items excluding food declined one per cent from October to November.

Breaking down the November price

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Industry 200� Review


increases at food stores shows that the major cause of the increase was fresh fruits and vegetables. On a month-to-month basis, fresh fruits increased by six per cent while fresh vegetables increased by 20 per cent. Both of these product categories comprise significant shares of the overall food CPI and as such, major changes in both lead to changes in the average.

During the first three quarters of 2007, the average price of food purchased from stores declined, particularly in the third quarter. Ironically, the main cause of the decline in the grocery CPI at that time was fresh fruits and vegetables, which decreased by seven per cent and 15 per cent respectively from October 2006 to October 2007. The common factor for the increase in prices this year and the decrease in prices last year was the change in the exchange rate.

Exchange rate impactThe Canadian dollar appreciated

dramatically through most of 2007, peaking in early November, and depreciated just as dramatically in the fourth quarter 2008. Fresh fruits and vegetables are very sensitive to changes in the exchange rate, especially during fall and winter when Canadian product is not available. The fact that the exchange rate peaked last fall,

and then dipped most severely this fall, makes year over year food price changes much more noticeable.

As a final point with regard to the pricing situation, Canadian price increases have generally been much more modest than U.S. grocery increases in 2008. On a year to date basis through November, U.S. prices of food consumed at home increased by well over six per cent, compared to the previously stated Canadian increase of 3.5 per cent.

It is clear that U.S. increases outpaced Canadian increases in 2008. This is of particular interest, even accounting for the steep Canadian dollar-induced decline in the third

quarter 2007, which would have exaggerated the year over year change in Canada.

The assertion, therefore, is that while the price of food purchased from stores in Canada did increase dramatically in November, it was due more to exchange rate and cost changes than to margin increases at retail.

Manufacturer sales

Based on Statistics Canada data through October 2008, it appears that food manufacturer sales are likely to

increase by five per cent in 2008, which means that 2008 food manufacturing sales will hit $77.6 billion, compared to $73.9 billion in 2007.

The five per cent increase in food sales in 2008 compares to less than one per cent growth in total manufacturing sales. The one per cent growth in total manufacturing in 2008 comes after zero growth in 2007. Food manufacturing’s share of total manufacturing sales in Canada will be just about 12.6 per cent in 2008, the largest share food has taken since 1993 when it was 13 per cent.

It is clear that U.S. increases outpaced Canadian increases in 2008.


In the U.S., total food manufacturer sales are likely going to be up by eight per cent in 2008 compared to 2007. The U.S. growth was the first year in the last seven that Canadian sales have been slower than U.S. sales in Canadian dollar terms. However, in recent years the Canadian food manufacturer share is generally increasing against both total Canadian manufacturing and U.S. food manufacturing.

Within the context of a four to five per cent overall sales increase, not surprisingly, the individual sectors within the overall food industry have performed very differently in terms of 2008 sales. From the perspective of major food manufacturing sales

changes between 2007 to 2008, there has been significant growth in flour milling and vegetable oils sales, while confectionery, meat and cereal sales actually declined last year.

Manufacturer pricing

The strong showing in food manufacturing sales is due, at least in part, to higher pricing. The Statistics Canada Industry Price Index (IPI) measures the changes in prices at the manufacturer level. The IPI measures changes in prices for manufactured goods sold to wholesale or retail, and includes discounts and allowances.

Looking at the trend in the IPI for food manufacturing and total

manufacturing, food manufacturer prices decreased for three straight months starting in September. Nevertheless, food manufacturer prices rose significantly on average during 2008. On a year to date basis from January through November, the food manufacturing price index increased by nearly five per cent compared to 2007, and November 2008 food manufacturer prices were 4.6 per cent higher than November 2007.

It is of interest to note, however, that most of the increase in food manufacturing is occurring in animal food manufacturing and grain milling. Animal food includes


pet food as well as livestock feed, and grain milling includes flour milling and oilseed processing. Big price increases are consistent with huge sales increases. Other manufacturer prices for products such as frozen foods, cereal, confectionery, and dairy all saw price increases less than the overall average, while meat prices actually declined in 2008. Bakery products, which increased in price by up to six per cent, were one of the few areas in which a basic food product increased materially in 2008.

As such, the biggest increases in food manufacturing have occurred at the primary manufacturing level, which suggests two points:

The manufacturing industry is still working through the major commodity cost increases that occurred during the first half of 2008.

With the recent declines in commodity prices, manufacturers will have a difficult time pushing through the costs they absorbed in the first half of 2008.

Despite the volatility, it does appear that food manufacturers were able to pass along decent pricing increases in 2008. Retailers, for their part, were also able to move pricing higher in key areas.

Looking forward, economic challenges will result in a more difficult pricing environment. Grocers are always sensitive to their price image and this will heighten in 2009. Manufacturers will not have big increases in commodity prices to use as arguments for pricing increases. Watch for more margin pressures for both manufacturers and retailers in 2009.

The strong showing in food manufacturing sales is due, at least in part, to higher pricing.

A version of this article first appeared in the January 2009 issue of Grocery Trade Review, published by the George Morris Centre. If you would like a free trial subscription to Grocery Trade Review, or one of four other market publications, please email Kevin Grier at [email protected].



Winnipeg-based company kicked off the new year by becoming the first to market

omega-3 enriched pork in Canadian retail stores.

Prairie Orchard Farms launched its omega-3 pork products at five Foodfare stores in Winnipeg on Jan. 12. According to the company’s president, Willy Hoffmann, the products should be available across the country by March.

“We’re very happy that Foodfare has agreed to work with us,” he said, noting that Prairie Orchard’s products were previously only available in select restaurants and specialty retailers, mostly in Manitoba but also as far away as New York.

Prairie Orchard Farms is currently the only company to have approval from both the United States Department of Agriculture (USDA) and the Canadian Food Inspection Agency (CFIA) to produce omega-3 pork and chicken.

Omega-3s are fatty acids traditionally found in high levels in seafood and associated with improved cardiovascular health and other health benefits. Through experimenting with feed mixes – including, most importantly, flaxseed, a source of omega-3s in the form of alpha-linolenic acid (ALA) – Prairie Orchard discovered a high amount of the fatty acids in its meat.

To begin with the company will market its omega-3 raw pork products, followed by omega-3 chicken and processed meats. Hoffmann said he hopes to have the omega-3 turkey on retail shelves before the end of the year as well.

“We have been working with some processors here in Winnipeg, such as Smith’s (Quality Meats) and Winnipeg Old Country Sausage, on further processed material,” he said, noting that omega-3 farmer sausage, breakfast sausage, bologna, wieners and even bacon could all be hitting shelves in the near future. “‘Healthy bacon’ sounds

like an oxymoron – it’s bacon with benefits.”

In addition to omega-3s, Prairie Orchard’s meat products are rich with selenium, a mineral that can help boost a person’s immune system, may help to prevent cancer and Alzheimer’s disease, Hoffmann noted.

Hoffmann added that a challenge in creating the products has been finding the right taste.

“We worked with a number of different grains, vitamins and minerals

– all natural – until we had the flavour profile that we were happy with, also creating the high omega-3 content,” he said. “We had to make sure we were able to do this without seasonal effect, so that we had similar results year-round.”

Greg Anania, owner and head chef of Bellissimo, a Winnipeg restaurant that has served Prairie Orchard’s omega-3 pork products for over two years, said the flavour and tenderness of the meat have earned a great response from customers.

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Winnipeg company introduces omega-3 enriched pork to retail stores.

Heart-Healthy Pork

from the PrairiesBy Alan MacKenzie

Owner and head chef of Bellissimo restaurant, Greg Anania says customers are enjoying the taste and tenderness of Prairie Orchard Farms’ omega-3 enriched pork.

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“‘Healthy bacon’ sounds like an oxymoron – it’s bacon with benefits.” – Willy Hoffmann, president, Prairie Orchard Farms

January/February 2009 CanadianMeatBusiness 1� meatbusiness.ca

“It has a little bit of a darker colour and more of a full flavour to it,” he said. “In the cooking process I’m finding that it’s a little more tender than the regular pork tenderloin that I had been using. The price is slightly above a regular pork tenderloin, but you get what you pay for.”

Prairie Orchard began its research into value-added meat in 2000 when it was a division of Max Pro Feeds Ltd., a company Hoffman co-owned. In 2004 the feed company was sold and Hoffmann retained the division, creating a new company. Prairie

Orchard’s first regulation approval came in 2005 for its omega-3 pork. In 2007 it received approval for omega-3 chicken from the USDA and CFIA, and last year the company’s new omega-3 turkey also received approval from the two agencies.

Part of the reason Prairie Orchard is able to move into the retail market at this time is due to some new Chinese investors that are also hoping to have the products approved and available in China in the near future.

“We’ve been out there a few times and there are some great opportunities

– initially to ship the omega-3 meat products from Canada into China, and long-term to produce omega-3 products in China.”

The company has won numerous awards for its products in recent years, including the 2008 Product of the Year (Large Business) from the Manitoba Food Processor’s Association, the Dr. F.X. Ahern Prize for Innovative Pork Production awarded at the 2008 Banff Pork Seminar and a 2007 innovation award from Agriculture and Agri-Food Canada.

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atural Prairie Beef (NPB) and the Manitoba Cattle Enhancement Council

(MCEC) have been announced as the first two shareholders of Keystone Processors Ltd., a newly formed company that will begin operations of a new beef processing facility in Winnipeg in the early part of this year.

While in the current economic climate you’re more likely to hear about layoffs than new plant openings, the new company is optimistic about the venture, according to MCEC executive director Kate Butler.

“One of the reasons MCEC exists is because this kind of venture is risky by nature,” Butler said. “We’re approaching this with a lot of caution, but also with a lot of optimism. This has to happen so there is less risk overall for the (Manitoba) producers in the marketplace. The international markets themselves are the very reason this needs to be done. The whole economic climate is just illustrating the fact that it’s important for us to have a viable plant here in the province so we’re not as dependent on those world forces. We need to take care of our own.”

Butler said the new company expects to have more shareholders in place once the plant opens.

“We’re seeking that shortly, but we’re approaching it step-by-step,” she said. “Right now the plant is being ramped up to start production as soon as possible. That’s the first priority.”

Butler said approximately two-thirds of the plant – originally a Maple Leaf hog processing facility – will be completely rebuilt with state-of-the-art technology and food safety upgrades. The cost of the venture, including upgrades, is about $2.5 million.

“We’re not just taking an old plant and making it work – we’re turning it into a brand new facility,” she said. “It’s being renovated to the level of being one of the best in the business.”

The plant’s first phase, which focuses

on processing and marketing products to Manitoba consumers, is expected to begin in the early part of 2009. By late 2010 the plant will be completely renovated to serve as a federally inspected beef slaughtering and processing facility. Once the plant has been federally inspected, its products will be available to major supermarket chains and can be exported outside of Manitoba and Canada. The plant is expected to employ 100 people when complete.

The original deal to purchase the

plant was announced in July 2008 by NPB, a private company owned by 50 Manitoba beef producers that raises and markets cattle under its Natural branded beef program.

According to Butler, the flexibility of the new corporate structure, which could accommodate a variety of shareholders, will allow multiple companies to invest in and utilize the plant to produce whatever kind of cattle they raise – whether that is natural, organic or conventional. The plant will also be set up to slaughter bison and will offer niche products such as kosher and halal beef.

According to NPB president and CEO Kelly Penner, the company is working closely with the City of Winnipeg and Manitoba Conservation to ensure it meets or exceeds all environmental regulations. He stated in a release that the facility passed a rigorous Phase II environmental assessment last year and that it will produce significantly less waste than it previously did.

“We’re holding ourselves to very high environmental and community standards,” he said. “We’re developing a first-class facility that will use the latest technology. We’re also committed to continuously searching out new ways to reduce waste.”

The company doesn’t expect to complete building the slaughter operations until 2010. Until then, it will be sub-contracting the slaughter of cattle to other Manitoba facilities. The company said it expects to start accepting about 250 head of cattle per day in 2010. The plant is designed to handle up to 500 head per day. The phased in approach will allow Keystone Processors Ltd. to start accepting Manitoba cattle and begin marketing its products in the short term, while positioning itself for future growth.

“We’re really hopeful that this is going to be of a long term benefit to Manitoba producers and to the meat industry in general in Canada,” Butler said.

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Keystone Processors set to open new beef processing plant, despite tough economic times.

Cautious OptimismBy Alan MacKenzie

“The international markets themselves are the very reason this needs to be done.” – Kate Butler, Manitoba Cattle

Enhancement Council

1� CanadianMeatBusiness January/February 2009 meatbusiness.ca

anada’s agriculture minister Gerry Ritz announced on Jan. 16 that Canada has reached an

agreement-in-principle that will open up export opportunities for Canada in Hong Kong. He said Canada will work closely with Hong Kong authorities to ensure quality and safety standards are met in order to complete a staged process within this calendar year. The announcement came after Ritz met with Hong Kong food and health secretary Dr. York Chow on a trade mission.

Canadian Cattlemen’s Association (CCA) president Brad Wildeman, who recently joined Ritz on the trade mission to Hong Kong, said the agreement is a win for both countries.

“It significantly improves the bottom line for Canadian producers, and provides Hong Kong families with access to high-quality, safe Canadian beef,” Wildeman said in a release. “It also sends a strong market signal of Canada’s serious intent to re-open and expand commercially viable trade of Canadian beef to other nations, worldwide.”

Wildeman, said this is the most significant market access development since 2007, when U.S. borders opened to beef over-thirty-months of age, and Mexico allowed bone-in beef, under-thirty-months of age, plus Canadian breeding cattle.

The first stage of the Hong Kong agreement allows most bone-in beef products – excluding vertebral column cuts, plus rib cuts from cattle under thirty months of age. After complying with Hong Kong’s requirements during an initial four month, phase-in period, it allows exports of rib cuts, boneless beef and offal from all Canadian cattle. By the end of 2009, if Canada meets the full requirements, Hong Kong borders will open to all remaining Canadian beef exports from cattle under-thirty-months of age, including t-bone and porterhouse steaks.

Before market closures due to the May 2003 outbreak of bovine spongiform encephalopathy (BSE), Hong Kong was Canada’s 10th largest

export market in 2002, according to the CCA. That year alone Hong Kong imported 625 tonnes of Canadian beef, worth $2.9 million.

In 2004 Hong Kong began accepting boneless Canadian beef from cattle under 30 months of age. Since then Hong Kong has become Canada’s third-largest export market. Since 2005 Canada has been exporting, on average, approximately 18,000 tonnes of beef per year into Hong Kong – nearly a 3,000 per cent increase over 2002. The CCA said that with the new agreement the ability to ship bone-in products and offal will significantly increase the tonnage shipped, as well as the value per tonne.

“Our federal government’s trade negotiators achieved a major step toward restoring export trade and the economic health of Canada’s beef cattle industry,” Wildeman said. “We hope this continues to build momentum in trade negotiations with other countries. It should send a strong signal to other Asian markets that it’s time to review their export restrictions. Canada expects these countries to show more flexibility, in line with the World Organization for Animal Health (OIE) recommendations to resume full trade in all Canadian beef products, provided specified risk materials are removed.”

According to the Canada Beef Export Federation, the improved access could mean an increase in Canadian beef exports to Hong Kong by as much as $26 million, almost doubling current exports.

While on the same trade mission minister Ritz travelled to India, where he signed Canada’s first agricultural memorandum of understanding with India to create a framework to expand agricultural trade between the two countries. Canadian agricultural exports to India are currently worth $445 million.

Ritz also announced that Indian agriculture minister Sharad Pawar agreed to work toward opening access for Canadian pork. According to a Government of Canada release, this

will be realized through the efforts of a newly established bilateral working group on veterinary matters over the coming year.

“Canadian farmers want to make their living in the market place and this government is working hard to make sure that market includes new opportunities in India, Hong Kong, and around the world,” Ritz said in a release. “These new marketing opportunities will help Canada to weather the current economic uncertainty and come out stronger than ever.”

- staff

C

Breakthrough trade agreement with Hong Kong improves market outlook for Canadian beef.

Opening Opportunities

“We hope this continues to build momentum in trade negotiations with other countries.”– Brad Wildeman, Canadian

Cattlemen’s Association

attle and hog producers facing hard financial times now have until Sept. 30, 2010, to repay

cash advances under the Advance Payment Program (APP), agriculture minister Gerry Ritz announced. In addition, the first $100,000 of each producer’s advance will continue to be interest-free.

“Thousands of farmers across the country have taken advantage of APP loans and this extension will keep them in business and provide relief during the current credit crunch,” Ritz said in a release.

The extension of the repayment deadline applies to regular and emergency loans taken by cattle and hog producers during the 2008-09 production period. The Stay of Default covers more than $450 million in advances to the livestock sector.

“This extension assists Canadian hog producers to cope with the current financial crisis,” said Jurgen Preugschas, president of the Canadian Pork Council. “We are pleased that the government

recognizes the financial difficulties hog producers are experiencing in these tough economic times.”

Producers can still apply for APP emergency advances until March 31, 2009. Regular APP advances will continue to be available. Beginning in April, producers who meet eligibility criteria will be able to apply for 2009-10 regular advances.

Brad Wildeman, president of the Canadian Cattlemen’s Association (CCA), said this news comes at a good time for Canadian livestock producers, who face many ongoing challenges including the world economic crisis and market uncertainty created by the United States country-of-origin labelling (COOL).

“Canadian cattle producers have endured considerable challenges for the past several years, and it’s encouraging to know that our federal government recognizes the importance of equipping producers with tools to effectively manage their bottom line, particularly when there is no immediate

end in sight for some of the issues facing the industry, he stated.” The APP makes it possible for producers to bring their bottom line back into the black.”

Wildeman added that the CCA will keep working with the federal government to improve business risk management programs to ensure they work for Canadian producers, saying that, “we appreciate the federal government’s responsiveness to both our production and trade issues. We applaud this renewed commitment through the APP program, as well as their new, stronger approach to international market access issues recently implemented as a result of recommendations we made on global export market access during the Beef Value Chain Roundtable meetings last fall. I’m confident this collaborative approach, and results, will renew hope for the industry and create a strong, sustainable future – improving operating costs and market opportunities.”

-staff

Relieving Economic Pressure


OpportunitiesCProducers have more time to repay advances under APP program.

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FKI Logistex Launches New Conveyors

FKI Logistex, a leader in integrated material handling solutions, recently announced the North American launch of the Logistex MR200 Motorized Roller Conveyor, a time-saving, energy-efficient system that is part of the company’s new Logistex Case Conveyor Solutions (LCCS) product family. The MR200 provides 24-volt motorized roller zero-contact accumulation and features a standard control module for straightforward programming without the need for reengineering or additional tools.

The FKI Logistex MR200 arrives ready to plug-and-play, featuring a wide range of pre-programmed zone control options that can be changed using simple switch settings, without the need for software programming. Those looking for more customization can add a “zone director” to perform higher-level control actions, while taking advantage of the built-in zone logic control.

The MR200 features run-on-demand logic and all-electrical design, significantly increasing energy savings over a conventional conveyor. The MR200 reduces wiring and includes robust, molded connections that decrease potential points of failure. Additionally, integral wiring and hardware LED status indicators simplify diagnostics and troubleshooting.

Also launched in North America is

the Logistex NB200 Narrow-Belt Driven Roller Conveyor, that is also part of the LCCS line. The FKI Logistex NB200 offers maximum system throughput rates by using time-tested, proven algorithms for release modes and zero-pressure accumulation.

The NB200 provides customers with the option of three standard release modes, which can be changed quickly and easily with selectable switch settings. The NB200 conveyor offers enhanced ease of maintenance and reduced belt wear. The conveyor includes a unique self-tracking feature that recognizes when the belt has shifted to the left or the right, reducing maintenance requirements. The conveyor also operates without the use of a chain, eliminating the need for oil and making it ideal for clean environments such as food, beverage and pharmaceutical processing facilities.

The NB200’s accumulation and release modes are derived from proven FKI Logistex zone control logic that maximize throughput. Multiple accumulation and release modes options allow the NB200 to provide reliable high density accumulation and release throughput. Flexible accumulation options include downstream zone look-ahead that allows product to move downstream at the best possible rate while maintaining gentle zero-pressure accumulation.

The conveyor includes the ability to switch between slug and singulation release modes to match the flow demands of an application. The NB200 also offers an innovative dynamic auto-slug feature, which is a built-in option that allows the NB200 accumulation zones to self-monitor product density and move groups of product downstream when space is available. This option increases accumulation throughput by 10 per cent over other similar accumulation methods.

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Sorter Technology Reduces Energy Consumption and Increases Reliability

The new LS-4000E tilt-tray and LS-4000CB cross-belt sorters form FKI Logistex feature linear synchronous motor (LSM) technology, consume approximately 75 per cent less energy than comparable sorter systems using linear induction motor (LIM) technology.

The LS-4000’s LSM generates propulsive force via electromagnetic energy, as opposed to mechanical friction between moving parts. This operation reduces energy consumption and noise levels, while increasing speed, reliability and positioning accuracy. In addition to the LSM drive, the LS-4000E and LS-4000CB feature a modular design that enhances system flexibility and offers fast and easy installation and commissioning.

Electrical consumption tests conducted under typical warehouse conditions demonstrate that, on average, the LS-4000E tilt-tray sorter consumes 2.4 kilowatts per hour of operation. In contrast, energy consumption of a comparable sorter using LIM technology is 10.3 kilowatts per hour. Tests of cross-belt sortation technology demonstrate that the LS-4000CB cross-belt sorter consumes an average of 2.7 kilowatts per hour of operation while energy consumption of a comparable sorter using LIM technology is 11.0 kilowatts per hour. As the chart below illustrates, the LS-4000E and the LS-4000CB can provide energy savings of 19.8 megawatt hours (19,800 kilowatt hours) per year and over 20 megawatt hours (20,000 kilowatt hours) respectively.

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FKI Logistex Unveils Secure Remote Access System

FKI Logistex has released NetLok, a secure information infrastructure for remote connectivity. The announcement was made by Steve


Ackerman, president, FKI Logistex North America, at a press conference held at ProMat 2009 in Chicago, Ill.

NetLok features a closed-loop login procedure with a restricted login provision, allowing secure, one-time access to the network by authorized technical support staff. With reliable 24/7 diagnostics availability, FKI Logistex technical support staff can log-in remotely to troubleshoot, identify and respond immediately to the problem with the appropriate solution. NetLok proactively detects connectivity problems, reducing potential lapses in diagnostics. The system can also automatically track, record and archive an audit of remote network access.

NetLok supports multiple industry-standard connection types, centering around a virtual private network (VPN), and can handle PLC or PC systems from the same connection, allowing several sites to be managed without the need for resident connectivity applications. Using a pool of dedicated network resources, and with built-in redundancy provided by a secure mirror site, NetLok provides speeds that are up to 120 times faster than traditional modem connections.

Featuring a common user interface, NetLok provides network access without the need for special clients. Existing FKI Logistex customers can easily upgrade their legacy systems to NetLok to gain the benefits of a secure and reliable remote connectivity package. More than 200 of FKI Logistex customer sites worldwide are currently accessible via NetLok, and over 100 of those are in North America alone.

Rollstock Zipper Machine Offers Big Value With Small Footprint

Rollstock’s RZ-200 Zipper Packaging Machine is designed for seafood, luncheon meats, bacon and any food or non-food products that require a reliable, consumer-friendly reclosable feature.

Like all Rollstock equipment, the RZ-200 offers simple reliability in a low cost machine. A proven simple and reliable zipper system developed by Pro-Pac Services is built into the already proven standard Rollstock Inc. machine, making most parts interchangeable. At 18 feet, this machine is less than 50 per cent the length of most standard zipper machines, which frees up valuable floor space. Starting at $199,000, the RZ-200 is nearly 50 per cent less than the standard zipper machines currently available. With 10 to 14 week deliveries, Rollstock Inc. requires nearly 50 per cent less lead time than standard zipper machines currently available.

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or the meat processing business, audits are crucial. A failing score can not only mean a loss of profits if a plant is shut down, but it can also

invite unwelcome media scrutiny. One area key to audit success is pest control – sometimes accounting for up to 20 per cent of a facility’s total audit score. With pests like flies and cockroaches carrying pathogens such as E. coli and shigella – it’s no wonder auditors want to see proof of a proactive pest control program. Fortunately, implementing an integrated pest management (IPM) program that focuses on detailed documentation can help ensure auditors are giving you an “A” on pest control.

Auditors like to see an IPM program in place because it’s an ongoing process that focuses on sanitation and facility maintenance to prevent pest problems before they start. If pests are found in a facility, IPM emphasizes non-chemical remediation over chemical treatments thereby reducing the likelihood of chemicals contaminating meat. When chemicals are necessary to treat a pest problem, they are applied in the least amount possible and in the least volatile form. How does an auditor know your facility takes preventive steps and uses chemicals only when necessary? The answer is: documentation.

Thorough documentation is a crucial piece of the IPM process. Even if you choose to maintain electronic records, it is always recommended to keep hard copies in a binder for easy reference. Keep these records current at all times, and place the binder in a central location so it can be easily accessed when auditors stop by. The binder should contain accurate and updated records including:

Service reports and corrective actionsUp-to-date service reports from your pest management

professional will show an auditor that your facility is regularly inspected for pest issues. IPM programs need to be consistently re-evaluated to ensure changes at the facility have not allowed pests to breach your defenses. If an issue should arise, corrective action reports indicate what steps were taken to either treat a pest problem, or to fix facility maintenance and sanitation issues that have the potential to foster pest problems.

Pest activity reports and trend dataPest activity reports detail pest sightings, along with

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Ask your pest management professional about using a tracking device to generate data on pest trends. Keep

printed copies of this data in your binder to show auditors that you’re proactively monitoring for pest trends.

By Bill Melville

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the type and growth stage of the pest. It’s important to note these details because it can indicate the difference between a one-time pest sighting and an infestation. Ask your pest management professional about using a tracking device to generate data on pest trends. For example, if a certain trap is continually catching pests, you can target the surrounding area to ascertain why pests are seeking out that specific location.

Pesticide usage and material safety data sheets

Pesticide usage logs indicate when and where pesticides have been applied. By accurately detailing pesticide application records, you show the auditor that pesticides have been used in accordance with your IPM program and the law. The logs should include dates, times and sites of applications; quantities applied; methods of application; targeted pests; and the name and certification/license number of the applicator. Additionally, material safety data sheets (MSDS) with the trade name and active ingredient of the pesticides must be kept on hand. Not only will auditors inspect the entirety of this information, but they also will verify that regulatory agencies approve of the pesticide for use in a food processing plant. Your plant also may have an internal approved list of pesticides.

Floor plans

Every auditor will want to see detailed floor plan schematics showing the location of all pest traps. They will likely walk the facility to ensure the traps are placed where indicated. This is an easy way to lose points so ask your pest management professional to ensure the map is updated before planned inspections. Remember that all indoor and outdoor traps should be numbered and represented on the trap layout map.

In addition to reports and maps, you’ll want to include an original service contract, and the pest management provider’s liability insurance records and business license. Meet regularly with your pest management professional to make sure that all your documentation

is complete and correct. Preparing your documentation in advance means one

less thing to worry about come audit day.

Even if you choose to maintain electronic records, it is always recommended to keep hard copies in a binder for easy reference.

Bill Melville is a quality assurance director for Orkin PCO Services. For more information, [email protected] or visit orkincanada.com.


Have your pest management professional add a service report to your documentation binder after each visit.

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Under its new parent company the Supplier Assessments for Food Excellence Program (GMA-SAFE) will see improvements that will help the

third-party audit plan grow in 2009, according to program director Bruce Becker.

The program, which was created in 2000 by what was then known as the National Food Processors Association (NFPA), was acquired by QMI-SAI Global last June. NFPA later became the Grocery Manufacturers Association (GMA), which is still involved with the program but provides more of an advisory function rather than doing day-today operations.

QMI-SAI is the Americas Division of SAI Global Limited. The company is a world leader in training, auditing and assessment with a client base of food organizations of over 5,000 food manufacturers and 25,000 food producers. SAI Global says it is experienced in working with virtually every significant global food auditing and assessment standard or program.

Under QMI-SAI Global, the program name, logo, contact information, web pages and other elements will not change. The Washington, D.C. office will remain in operation.

“GMA-SAFE will be making enhancements to customer and auditor interfaces to provide the program with expanded functionality for auditor and assessment report management,” Becker says, noting a new, more user-friendly computer platform will be put in place before the end of 2009’s first quarter.

“Also QMI-SAI has a very strong marketing capability that

will ensure the GMA-SAFE value proposition will reach a broad audience around the world,” he adds.

Becker explains that GMA-SAFE gives food manufacturers brand protection while helping retailers with due diligence.

“It’s a complete system that incorporates food safety, food defense and food quality in one comprehensive assessment,” he says. “We provide food organizations with this one assessment from which the data and information placed into the GMA-SAFE database can be used to meet multiple assessment needs.” Its core competency is built upon the fact that it does not discriminate among standards employed by the food industry throughout the world and the reality that no single set of standards could ever be adopted worldwide that would simultaneously drive both safety and economic efficiency.

The assessment consists of approximately 630 questions to be answered by a GMA-SAFE qualified auditor. There are over 200 spread across all key global markets, Becker says. He estimates that 75 per cent have been qualified SAFE auditors since the program’s inception.

“Most of our auditors are very seasoned,” he notes. “Most of them were QA (quality assurance) reps in companies that utilized SAFE, so when the retired from their jobs they became SAFE auditors because they were familiar with the strong value the program can bring to a food organization.”

Since its inception, GMA-SAFE has performed over 4,000 assessments across 30 countries.

TThird-party audit program moves ahead under new management.

Keeping Food SAFEBy Alan MacKenzie

With great sadness Lesters Foods Ltd. has announced the passing of its founder, Moe Lester on Aug. 11, 2008 at the age of 72.

Lesters Foods is one of Canada’s largest meat processing companies serving both the food service and retail industries. The company is well known for its smoked meat, hot dogs, steak spice seasoning and many other fine deli products such as pastrami, roast beef, pepperoni, salami, bologna and deli meat loaves. Lesters was a pioneer in the development of the world famous Montreal smoked meat and its original recipe continues to be a favourite for its unique taste and texture.

Through perseverance, drive and vision, Moe Lester transformed the family’s small deli on Montreal’s renowned St. Lawrence Boulevard into a national company.

Lesters Foods, supplying its increasingly popular products to many retail stores and restaurants during the early and late fifties.

“A humble man, who shunned the limelight, Moe Lester was well respected by his employees and his peers in the industry,” the company said in a release. “He will be missed.”

- Staff

Lesters Foods Marks Passing of Founder


aple Leaf Foods has reached a settlement agreement with the principal counsel groups that launched class actions following the August 2008

listeriosis outbreak that was linked to products from the company’s Bartor Road facility in Toronto.

The settlement was announced Dec. 18 and is subject to court approvals in Saskatchewan, Quebec and Ontario.

“Our goal throughout this legal process has been to negotiate a fair and early settlement so that we can obtain court approvals and promptly compensate families who were affected,” Maple Leaf president and CEO Michael H. McCain said in a release. “This was a tragic experience and I want to acknowledge the cooperation of all the parties involved to ensure that people affected receive timely restitution.”

The class actions were launched on behalf of persons that consumed or purchased for consumption products that were subject to the recall in August 2008 due to possible contamination from listeria monocytogenes. The settlement amount will be $25 million, increasing by up to $2 million to the extent that claims and costs may exceed $25 million. The compensation paid from the settlement amount will be administered by the class counsel under the supervision of the court. Maple Leaf Foods and class counsel are of the opinion that the settlement of the class actions is fair, reasonable and

in the best interests of the class. The agreement is subject to court approval. The settlement amount is fully funded by Maple Leaf Foods’ liability insurers.

Statement on investigationOn Jan. 20, Prime Minister Stephen Harper appointed

Sheila Weatherill a former Edmonton health authority president, as an independent investigator into the outbreak.

“We are pleased that the federal government's arms-length investigation is moving ahead and look forward to both cooperating fully with this investigation and sharing our key learnings from this past fall,” McCain said in a written statement. “We are confident that the joint efforts by government and industry, and the consistent application of high standards, will further enhance the Canadian food safety system and the integrity of our food.”

The inquiry will include a review of meat handling regulations in other countries, along with the efficiency of the Canada Food Inspection Agency. The investigation has scheduled report date of July 20.

-staff

MListeriosis suits settled for over $2� million.

Maple Leaf Reaches Settlement Agreement

Maple Leaf Closes $70M Private PlacementMaple Leaf Foods has closed its previously announced

financing to issue, on a private placement basis, 7,368,421 units at a price of $9.50 per unit for aggregate proceeds of $70 million. The net proceeds after issuance costs will be used for general corporate purposes.

“We believe this financing provides Maple Leaf Foods with the flexibility to support our strategic initiatives and rebuild our business through these difficult credit markets,” the company’s chief financial officer Michael Vels said in a release. “At the same time, the structure provides the company with the flexibility of reducing dilution to existing shareholders by providing us the option not to issue equity. The transaction also reflects the strong support of our major shareholders and other new investors.”

Each unit will consist of one subscription receipt for Maple Leaf Foods common shares and 0.4 common share purchase warrants. Each subscription receipt will entitle the holder to receive one common share of the company on Aug. 4, 2009 or, at the election of the company, the return in cash of all the unit proceeds, being $9.50 per unit. Each whole common share purchase warrant is exercisable into one common share of the company until Dec. 16, 2010 at a price of $9.50.

TOPIGS Canada Purchases Swine Genetics Operations of Maple Leaf

TOPIGS Canada Inc. recently purchased the swine genetics business operations and assets from Maple Leaf Agri-Farms (MLAF), an operating company of Maple Leaf Foods.

Under the terms of the sale agreement, TOPIGS Canada acquired MLAF’s genetics business, including the assets of Lean Team International, a marketing arm of the genetics business, along with a nucleus farm located in Manitoba. The two companies have also formalized an agreement where TOPIGS Canada will supply genetics to MLAF hog production operations.

TOPIGS is a world leader in pig genetics and with its subsidiaries, agents and distributors active in more than 30 countries. The company’s turnover is more than one million gilts per year and over six million doses of semen. TOPIGS is part of Pigture Group and headquartered in Vught, the Netherlands.

The company exports worldwide from its High Health SPF Nucleus farms in Saskatchewan.

New Board Structure for Pork CouncilThe Canadian Pork Council (CPC)

announced it has implemented a new board structure, moved to a new office and unveiled a new corporate logo.

“This announcement represents a fresh perspective and an enhanced commitment to the Canadian swine industry,” CPC president

Jurgen Preugchas said in a release. “Many exciting changes are underway at the CPC and I know the results will further strengthen and support the Canadian swine industry as one of Canada’s most successful and dynamic agri-food sectors.”

The new board structure starts operating this month. Under this new structure the work of the CPC will be directed by an 11-member board that will meet more frequently than its previous board, which had 18 members.

“We are excited about the revitalization that is taking place at the CPC and know that the changes will provide a more collaborative working environment for our members,” executive director Martin Rice added. “We see the new board structure and corporate identity as a positive and necessary step for the council's growth.”

The new CPC office is located on Laurier Avenue in downtown Ottawa. The council said all of its phone numbers and e-mail addresses will remain unchanged.

NAMP Announces New Poultry Science AdvisorThe North American Meat Processors Association (NAMP)

has announced the addition of a new science advisor, Dr. Manpreet Singh.

Singh is an assistant professor of food microbiology in the Poultry Science Department at Auburn University in Auburn, Alabama.

“Adding Dr. Singh as an additional resource for members is part our strategy to enhance NAMP services to all segments of the processing industry,” NAMP executive director Phil Kimball said in a release.

Singh obtained a masters degree from Kansas State University and doctorate from Iowa State University in the area of food safety and microbiology. He started his current position in January 2007 at Auburn University and assists meat and poultry processors on food safety, regulatory and microbial spoilage issues. He is involved in training poultry processors and

| Industr y Roundup |


validation of HACCP plans for the poultry industry.His research focuses on the safety of meat and poultry products

including control of foodborne pathogens in food processing environments. He has conducted research on controlling E. coli O157:H7 in raw ground beef, stressed pathogens, and listeria monocytogenes in processed meat and poultry products.

Currently he is involved in several projects focused on controlling foodborne pathogens such as salmonella, spores of bacillus, and clostridium in poultry processing environments.

Singh complements the two other NAMP science advisors: Dr. Jim Marsden, a meat science professor at Kansas State University, and Dr. H. “Reddi” Thippareddi, of the University of Nebraska.

FDA Issues Guidelines for GE MeatThe U.S. Food and Drug Administration on Jan. 15 issued

its final regulations governing the approval of genetically engineered (GE) animals.

GE generally refers to the use of recombinant DNA (rDNA) techniques to introduce new characteristics or traits into an organism. When scientists splice together pieces of DNA and introduce a spliced DNA segment into an organism to give the organism new properties, it is called rDNA technology. The spliced piece of DNA is called the rDNA construct.

A GE animal is one that contains an rDNA construct intended to give the animal new characteristics or traits. GE animals are not the same as clones, which are exact genetic copies. Last year the FDA said cloned animals are safe to eat.

The guidance – titled “The Regulation of Genetically Engineered Animals Containing Heritable rDNA Constructs” – can be found on the FDA website.

“In this document, the agency has articulated a scientifically robust interpretation of statutory requirements,” deputy commissioner for policy Randall Lutter said in a release. “This guidance will help the FDA efficiently review applications for products from GE animals to ensure their safety and efficacy.”

The FDA’s Center for Veterinary Medicine (CVM) has been working with developers of GE animals on both early stage and more mature applications.

“At this time, it is our intent to hold public scientific advisory committee meetings prior to making decisions on GE animal-related applications,” CVM director Bernadette Dunham, D.V.M., Ph.D., director of CVM.

Some consumer groups oppose the FDA’s ruling that no labelling of food from these animals will be required.

“Despite thousands of comments from consumers saying they want to know if engineered meat or fish is in their supermarket, FDA claims these foods are not different from conventional food, and therefore don't need to be labelled,” Jean Halloran, Director of Food Policy Initiatives for the non-profit group Consumers Union, stated in a release. “This flies in the face of consumer opinion and common sense. These foods should be labeled because they are different – in FDA’s terms the presence of novel genes is a material fact.”

Canada currently has no guidelines on GE animals, although it is expected the government will eventually follow the FDA’s lead.

Promotions and Additions at AMIThe American Meat Institute (AMI) recently announced a

number of staff changes, including to the institute, including to its non-profit research and education organization, the AMI

Foundation.Dr. Betsy Booren was named director of scientific affairs

for the AMI Foundation. Booren recently completed her Ph.D. in food science from Texas A&M University (TAMU). At TAMU, Booren taught courses on nutrition, food science and advanced meat science, oversaw laboratory facilities and assisted with extension programs. Booren received her master’s degree in animal science from the University of Nebraska and her bachelor’s degree in food science from Michigan State University.

Also in the AMI Foundation, adjunct animal sciences professor at the University of Wisconsin and former Kraft Foods fellow Dr. Andrew Milkowski, has been retained to provide technical services for the Institute. Milkowski will focus on diet and health issues.

Boreen and Milkowski will report to AMI executive vice president James Hodges, who was named interim president of the AMI Foundation following the departure of Randall Huffman, who recently joined Maple Leaf Foods as its chief food safety officer.

Elsewhere, AMI director of legislative affairs Dale Nellor will become vice president of legislative affairs. He joined AMI in February 2006. In addition, Matthew Mika was named director of legislative affairs.

In the convention services department, Heather Schoch was promoted to director of convention and exposition services. Prior to joining AMI in 2007, Schoch managed conferences and trade shows at the Optical Society of America in their conventions and meetings department.

| Industr y Roundup |


events calendar

Thefoodnewz is an on line events calendar created by Debra Bradshaw of Zep Food & Beverage Division. To find out more about the events listed in this magazine visit thefoodnewz.com. If you know of events not listed please email Debra directly at [email protected].

February 2009

10 to 12Agri-Food Innovation ForumToronto, Ont.agrifoodforum.com

17 to 19NAMP Centre of the Plate Training PlusGuelph, Ont.namp.com

20 to 22 OIMP 29th Annual Conference / 2009 Meat & Food Processing ExpoMississauga, Ont.oimp.ca

25 to 26Ontario Cattlemen’s Association Annual General MeetingToronto, Ont.cattle.guelph.on.ca

27 to 28 The BC Food Service Expo 2008BC Place Stadium, Vancouver, B.C.crfa.ca/tradeshows/bcfse

March 2009

8 to 10CRFA ShowDirect Energy Centre, Toronto, Ont.crfa.ca/tradeshows/crfashow

10 to 133rd Annual Growing the Margins: Energy, Bioproducts and Byproducts from Farm and Food Sectors Conference and Exhibition / 1st Annual Canadian Farm and Food Biogas Conference and Exhibitiongtmconference.ca

23Chicken Farmers of Ontario Annual General Meetingcfo.on.ca

27 to 29NAMP Annual Management ConferenceThe Drake Hotel, Chicago, Illinoisnamp.com

April 2009

1 to 3SIAL Montreal – The North American Food MarketplaceMontreal, Que.sialmontreal.com

5 to 7APEXExhibition Park, Halifax, N.S.crfa.ca/tradeshows/apex

egistration is open for the North American Meat Processors Association’s (NAMP) 52nd

Management Conference.The theme of this year’s event – which takes

place March 27 to 29 at the Drake Hotel in downtown Chicago – is “Embracing Change: lead, follow, or get out of the way!”

The program also offers an optional E. coli O157:H7 mini-conference on Thursday, March 26 featuring a discussion on how to prepare for a food safety assessment with Dr. Kerri Harris, associate professor of meat science at Texas A&M University; and a look at exploring intervention options with Dr. James Marsden, NAMP’s senior science advisor.

This year’s management conference offers 16 separate forums in one or more of five professional development tracks, including one on Canadian food safety compliance with Dr. Richard Arsenault of the Canadian Food Inspection Agency.

Other highlights of the event include:

• A new finance professional development track • A live cutting demonstration forum that follows up on a

general session on value cuts• Confidential advice from leading authorities in NAMP’s

College of Experts• Networking at the Showcase Reception, now on Friday

evening• Phil Clemens, chairman and CEO of Hatfield Quality Meats,

is the keynote speaker for the event. Other presenters include:

• Ron Krivosik of Levy Restaurants, Sports & Entertainment and Larry Huber of the Clean Plate Restaurant Group on what you and your customers should know about each others’ businesses

• Scott Lively of Dakota Beef Company and NAMP past president Jon Rocke of the Smithfield RMH Food Group on positioning your products for big box sales

• John Nalivka of Sterling Marketing on the outlook for the red meat industry – the challenge to processors

• Dr. Chris Calkins, Rick Morris of Buckhead Beef Atlanta, Bill Christenson of Ed Miniat, Inc., and John Stowell of Dole & Bailey on Value Cuts, plus a cutting demonstration by NCBA

• Dan Wang of Chicago Meat Authority and Mark Nickel of RSM McGladrey on how to engage your finance department in your operations, and measuring your customer profitability

• Bank of America on surviving the credit crunch

All conference activities take place at The Drake Hotel, a Chicago landmark that has been a symbol of white glove elegance for more than 80 years.

For more information or to register for the conference, visit namp.com.

- staff

RNAMP unveils program for �2nd Management Conference.

Embracing Change


| Cross Countr y News |

British ColumBia

Avian Influenza in Fraser Valley Turkey FarmSeveral poultry farms in B.C.’s Fraser Valley were placed under

quarantine as the Canadian Food Inspection Agency (CFIA) on Jan. 26 confirmed an outbreak of H5 avian influenza (AI) on a turkey farm in the area.

At press time 23 farms within a three-kilometer radius of E&H Farms in Abbottsford, where the virus was found, were under quarantine and over 60,000 turkeys were set to be culled.

According to the CFIA, AI rarely affects humans, unless they have had close contact with infected birds.

The birds are being euthanized with carbon dioxide gas, the CFIA stated in a release. Federal and provincial animal welfare experts are on hand to oversee this process.

Once the depopulation is complete, the birds will be composted inside the barn and temperatures monitored to ensure virus destruction. Seven to 10 days following composting, the composted material will be moved outside for normal composting on farm. These protocols respect provincial environmental regulations and internationally accepted disease control and biocontainment guidelines.

The CFIA said it will provide compensation to producers for the market value of all birds ordered destroyed through this investigation, as well as any costs the producer may incur associated with disposal. Assistance is also available through other federal and provincial programs, the agency said.

This is not the first occurrence of AI in the province. In February 2004, the CFIA identified the presence of a low pathogenic H7 AI in the Fraser Valley. Subsequent tests from infected birds revealed the virus had mutated to highly pathogenic H7 AI in March 2004.

The CFIA depopulated all infected premises (42 commercial and 11 backyard premises) as well as destroyed all birds in the surrounding three-kilometre areas.

In November 2005, the CFIA identified the presence of a low pathogenic strain of H5N2 on two duck farms in the Fraser Valley. The two duck farms were depopulated and the 78 commercial bird farms within a five-kilometre radius were monitored for a three-week period. The surveillance period ended on Dec.10, 2005.

Funding, New Research Chair to Support Cattle Industry

Ida Chong, B.C.’s technology, trade and economic development minister announced a new cattle industry chair at Thompson Rivers University (TRU) that will help B.C. cattle ranchers improve profitability, protect grasslands and endangered species, and reduce greenhouse gases.

John Church, who has a PhD in rangeland and wildlife resources, was appointed B.C. regional innovation chair in cattle industry sustainability. His job will be to develop new techniques and technologies to help make the province’s cattle industry sustainable – both economically and environmentally.

“This $250-million industry is vital to B.C.’s rural economy,” Chong said in a release. “By funding this chair, government and industry have partnered with TRU to support ranchers with innovations that will ‘beef up’ profits while caring for our province’s sensitive grassland areas and helping to fight climate change.”

alBerta

ABP Welcomes New ExecutiveRick Burton of Claresholm was named the new chairman

of the Alberta Beef Producers (ABP) at the group’s annual general meeting in December. Burton takes over for Erik Butters, who moves into the past-Chairman position after two terms.

The AGM was held in Calgary Dec. 8 to 10 and included speakers, resolution debates and elections.

Also elected were Kevin Boon of Tomahawk as vice chairman and Doug Sawyer of Pine Lake as finance chair.

The 2008/2009 ABP Board of Directors includes: Gerald Maser (Manyberries), Brent Carey (Stavely), Brian Edge (Cochrane), Frank Murphy (Altario), Doug Sawyer (Pine Lake), Greg Bowie (Ponoka), Rob Sommerville (Endiang), Roy Eckert (New Sarepta), Darcy Eddleston (McLaughlin), Darryl Carlson (Pincher Creek), Brian Chomlak (Beauvallon), Larry Delvin (Calgary), Kevin Boon (Tomahawk), Ben Schrader (Jarvie), Janys Boyte (Elmworth), Chuck MacLean (Medicine Hat), Stuart Thiessen (Strathmore) and Erik Butters (Cochrane).

Church will lead a multidisciplinary research team at TRU, working closely with industry through a steering committee. He is particularly interested in developing feeding strategies to increase health-giving omega 3 oils in beef, and to reduce the amount of methane – a greenhouse gas up to 20 times more potent than carbon dioxide – produced by cattle.

“Sustainable cattle ranching involves grazing practices that uphold the ecological integrity of the grasslands on which these operations depend,” said Church. “The cattle industry and the land will continue to flourish for future generations only through encouraging stewardship activities, information exchanges and partnerships that support the ranching practices that are so economically and socially important for Kamloops and our province.”

The province provided $1.25 million for the chair was provided through its Leading Edge Endowment Fund. Matching funding includes $625,000 from the Cattle Industry Development Council and $250,000 from the Real Estate Foundation of B.C.

B.C. Ag Minister DiesBritish Columbia’s minister of agriculture Stan Hagen died

suddenly of a heart attack on Jan. 20. He was 68.“When Stan took over as British Columbia’s agriculture

minister, he brought a common-sense approach to our work with other provincial agriculture ministers as we built Canada’s national agricultural policy,” federal agriculture minister Gerry Ritz said in a statement. “I know his provincial colleagues would agree that Stan had an impact on every successful policy and initiative coming out of those meetings. All of us considered Stan a friend.”

B.C. premier Gordon Campbell said in a statement that Hagen loved British Columbia and that the province has suffered a great loss.

“Stan served as minister of 10 different ministries in governments from 1986 to 2009. No one in Canadian public life can match that,” Campbell stated.


| Cross Countr y News |

ontario

Ontario Pork Temporarily Reduces Service FeeOntario Pork’s Board approved an interim budget for 2009

that will reduce service levy fees for producers from $1.75 to $1.65 per hog. The new fee became effective Jan. 5.

According to a release from the agency, the new fee will be a temporary first quarter measure, pending the new marketing

manitoBa

IBM and Province Build “Digital Passport” System for Food

IBM and the Province of Manitoba have successfully tested a new system which makes it possible to digitally trace the journey food takes before it ends up in consumers’ shopping carts. Through the project, Manitoba has taken the first step in implementing a provincial traceability program.

The project tracked data about product movement, animal history and characteristics, processing history and transportation data throughout the complete value chain.

IBM provided business consulting and project management services, working with the province and more than 16 supply chain partners, including beef and pork producers, animal feed ingredient producers, feed manufacturers, farmers, processing plants, truckers and a retail grocery chain.

Using Global Traceability Network (GTNet) software from IBM business partner TraceTracker, Manitoba’s project demonstrated it is possible to securely and accurately gather and crunch data about a piece of meat from a variety of sources and share that information, at any step in the process. As a web platform, the GTNet allows trading partners to exchange critical product information so they can communicate key messages to customers and consumers.

Ultimately, the system also can be used to provide messaging that will help re-establish and reinforce consumers’ confidence in the food products they’re buying. In fact, IBM surveyed more than 1,600 consumers in 2007 and found nearly 70 per cent expressed a low overall level of trust in the claims branded food products make about their environmental impact and health benefits. Almost half of consumers were concerned about safety, and nearly two out of every five said they buy different brands today because of these concerns.

MCPA Names New PresidentThe Manitoba Cattle Producers Association has named Joe

Bouchard as its new president, according to a report from Farm Business Communications.

Bouchard, who farms in the province’s Interlake region, replaces Martin Unrau.

According to the report, the MCPA also announced the following positions:

• Ray Armbruster of Rossburn was named as vice-president• Major Jay Fox of Eddystone as second vice-president• Art Jonasson of Vogar as treasurer• Greg Johnson of Baldur as secretary

QueBeC

New Office for Malabar Super SpiceMalabar Super Spice Co. Ltd., Canadian supplier of spices

and seasonings, functional ingredients, sausage casings and supplies to the meat and poultry sectors has opened a new office in Quebec.

Based in Montreal, the office will serve processors across the province and will be headed up by Eric Barou, who has over five years experience in the spice and ingredient industry in the region, according to the company.

“Malabar Super Spice is proud to have Eric joining our team and we are looking forward to providing processors across Quebec with the same top quality products and excellent service that we’re known for in the rest of Canada,” the company’s president Doris Valade said in a release.

environment resulting from the Farm Products Marketing Commission’s (FPMC) decision made last October to remove Ontario Pork’s marketing monopoly. A new forecast budget will be created for the remainder of the year to include the separation of universal services and marketing fees.

The completed marketing implementation plan is due to the FPMC by March 1.

Ontario Pork represents the 2,900 farmers who market hogs in the province in many areas, including hog marketing, research, government representation, environmental issues, consumer education and food quality assurance.


he Ontario Independent Meat Processors (OIMP) Annual Conference and 2009 Meat

and Food Processing Expo will take place Feb. 20 to 22 in Mississauga, Ont.

“(The) Friday night ‘Meet the Members’ reception, is a great opportunity for new members, first time attendees, exhibitors, sponsors, and old friends to mix and mingle. There is no other event where fellow meat plant operators can gather to share the breadth of knowledge contained within Ontario’s meat industry,” OIMP president Tony Facciolo said in a statement to members in the association’s recent BLOCKtalk newsletter.

The 2009 Meat and Food Processing Expo takes place February 20 and 21 at the International Centre and is the only show of it’s kind in Canada, the event provides one location to showcase innovations, connections and solutions to the processors and suppliers of the meat and food processing industry. This event is a must see for people in the industry, with over 100 exhibitors showcasing their products and services to delegates within Ontario, across Canada and Internationally.

The trade show takes place starting at 10:00 a.m. on the 20 and 21 and will feature over 100 exhibitors showcasing their innovative products, new technologies, equipment and services to Ontario’s 3,000+ meat and food processing companies.

Included will be the latest in:• Analyzing• Building Design Engineer• Casings• Clothing• Computer Hardware/Software• Food Safety/HACCP• Ingredients• Insurance• Labelling• Laboratory Services• Material Handling• Packaging• Pest Control• Processing Machinery• Safety• Sanitation• Seasonings• Walls, Doors Ceilings and Floors• Water Treatment

Held in conjunction with the conference is the popular Ontario Finest Meat Competition. Processors from across the province will submit a

premium meat or poultry product for a chance to be crowned in one of the following 12 categories.

• Ham• Premium Dry Cured• Country Style Bacon• Fresh Sausage Coiled• Cooked and/or Smoked Sausage• Cold Cuts• Innovative Product• Deli Roasts• Home Meal Replacement• Fermented Sausage• Homegrown Ontario Beef Steak

Entries will be evaluated by a panel of food industry professionals and media on Thursday, Jan. 22. The top three entries from each category will be announced at the OIMP Awards Gala on Saturday, Feb. 21.

The twelve first place winners will have their product featured in a recipe developed by chef Nicole Young which will then be professionally photographed and distributed to media. The top entries will also appear in the 2010 OIMP 30th Anniversary Calendar.

- staff

TConference and expo hits Mississauga in February.

OIMP’s Annual Meating PlaceP

ho

to: O

IMP

PACKEX Toronto 2009, Canada’s Packaging, Material Handling and Logistics – formerly PACex International – takes place May 5 to 7 at the International Centre in Mississauga. PACKEX Toronto also welcomes IPA Canada, the National Food Process Exhibition. Together the two co-located events will welcome approximately 500 exhibitors and over 8,000 attendees.

IPA Canada – the “show within the show” – will focus on the newest developments in processing technology and provide unparalleled access to solutions designed to meet the modern challenges faced by the industry's food and beverage manufacturers. Exhibitors will demonstrate

equipment, products and service solutions in the bakery, beverage, confectionery, dairy, fruit and vegetable, ingredients and flavours, meat, prepared and snack food industries.

Also, for the first time ever PACKEX Toronto partners with Equipnet to present a live auction on the show floor. Attendees in the exhibit hall will be joined by bidders across the globe via a simultaneous webcast event. Attendees will have a great opportunity to buy refurbished equipment, trade-ins and machinery right from the trade show.

To register for PACKEX Toronto/IPA Canada, visit packextoronto.com.

- staff

Countdown to PACKEX Toronto 2009


Conference and expo hits Mississauga in February.

n indispensable resource for any meat industry professional is the Meat Buyer’s Guide from

the North American Meat Processors Association (NAMP).

Not to be confused with the Canadian Meat Business annual Buyer’s Guide – also a valuable resource tool for industry professionals – NAMP’s Meat Buyer’s Guide is a 336-page educational guide and technical resource that would be beneficial to any purchaser of meat products worldwide. With easy-to-read charts, diagrams and countless photos, the guide covers all cuts of beef, lamb, veal, pork and poultry.

Foodservice organizations have long considered the guide to be the premier publication for education and information on the subject of meat cuts. Government, culinary schools, foodservice establishments and their employees, industry food organizations and others wishing to gain knowledge about meat rely on the publication. If there’s anything you need to know about a certain cut of meat, you’re guaranteed to find it in the guide.

First published in 1961, the Meat Buyer’s Guide has been revised several times, most recently in 2007. The latest version offers more than 60 new photographs, several new descriptions of cuts and processing options, and updated coverage of food safety. For the first time the guide also

features the Poultry Buyer’s Guide, which premiered in 1999 and was previously available separately from the association.

NAMP is a non-profit trade association comprised of meat processing companies and associates who share a continuing commitment to provide their customers with reliable and consistent high-quality meat, poultry, seafood, game and other food products.

- staff

A

NAMP Guide a Must-Have for Meat Buyers


anadian government officials and meat industry association leaders said the provisions

in the final regulations for the U.S. government’s mandatory country-of-origin labelling (COOL) rule published Jan. 12 will help to level the playing field for Canadian producers and will strengthen the integrated North American livestock industry.

“I am pleased that key issues raised by Canada are addressed in these measures,” Stockwell Day, minister of international trade, said in a release. “Together with the provinces and industry, we will continue to assess the trade and market impact of this legislation. We have built a strong and durable trade relationship over the years with the United States and we must more than ever aggressively pursue this already robust relationship during these difficult economic times.”

“This government always stands up for Canadian livestock producers and that hard work is paying off as we protect and expand opportunities for our producers within the integrated North American beef industry,” added agriculture minister Gerry Ritz. “These final regulations will help to address the concerns we’ve

CGovernment, industry associations pleased with provisions to U.S. mandatory labelling rule.

Final Rule on COOL

consistently raised with our American counterparts, and we will continue to work with the U.S. to prevent any unfair harm to our industry.”

The day after the final rule was published the Government of Canada suspended its complaint with the World Trade Organization over COOL.

“We will shelve our concern at this point but we will continue to assess the impact of COOL as it moves along,” Ritz told reporters on a conference call.

Brad Wildeman, president of the Canadian Cattlemen’s Association (CCA) said in a release that he is hopeful the changes will allow greater flexibility, but noted the CCA is still opposed to the mandatory COOL initiative.

“At first glance of the 260-page rule, we are pleased to see that it provides the same flexibility for use of a mixed origin label on beef (or pork) derived from animals imported direct-for-slaughter, as now exists for use with a mixed origin label on products derived from United States (U.S.) origin animals,” Wildeman stated.

“This should provide U.S. buyers of Canadian cattle (and pigs) greater flexibility in managing their

inventories,” he continued. “We hope this approach enables U.S. facilities to resume accepting Canadian cattle for immediate slaughter along with Canadian-born cattle fed in the U.S. We also hope that this flexibility eliminates, or at least reduces, price discounts by U.S. packers for Canadian cattle.”

Wildeman noted the CCA will closely monitor the impact of COOL on the Canadian beef cattle industry.

Similar to the CCA response, Jurgen Preugchas, president of the Canadian Pork Council (CPC), stated the council still considers COOL a barrier to trade.

“Publication of the final rule may alleviate some of the market uncertainty that currently disrupts our U.S.-Canada trade relationship,” he said in a release. “However, we will continue to assess the impact of the COOL on Canadian producers and will need an evaluation period to determine the impact of these changes in the marketplace.”

The U.S. and Canada are each other’s largest agricultural trading partners. In 2007, bilateral agricultural trade totalled $32.3 billion, a statement from the federal government said.

- staff

“…we must more than ever aggressively pursue this already robust relationship during these difficult economic times.” – Stockwell Day, Canada’s international trade minister

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| Meat Industr y Business Watch |

here are many critical success factors for start-up and mature firms. The significance of each

success factor varies across industries and changes over the lifetime of the firm. However, there is a critical success factor that transcends industrial and life cycle boundaries and remains constant over time. It is innovation.

Innovation is critical to the sustained success of every business. It is the ability to understand and respond to market needs. It is also the ability to anticipate and capitalize on future trends and changes within the political, economic, social, technological, environmental and legal sphere of a company’s target market. Innovation in itself is a competitive advantage as every technology and process gets old. If cash flow is the heartbeat of a company, innovation is its immune system. Companies such as Procter and Gamble, Apple and RIM have anticipated changes in their respective industries. They responded with innovative products that have set them apart from their competitors.

Often, companies grow to forget the origins of their success. They forget that they had to do things differently and continuously better than their competition to be ahead and accomplish what they have. Clayton Christensen, a Harvard professor, coined the term “disruptive innovation” in his book, Innovator’s Dilemma. He described disruptive innovation as a technology, service, or product that utilizes a disruptive strategy to challenge and compete against the dominant status-quo of an industry. Disruptive innovation creates an “innovators dilemma” for industry leaders whose successful processes, technology, service, and products make it difficult for them to foresee and react to future changes.

Ontario’s Ministry of Research and Innovation encourages the creation

of disruptive technologies through centralized commercialization networks. The goal is to stimulate innovation and inventions in Canada to create Canadian companies that are competitive globally. Commercialization networks such as RIC Centre (Research, Innovation, Commercialization Center), Ontario Center for Environmental Technology Advancement (OCETA) and MaRS focus on assisting entrepreneurs in different industrial sectors at various

stages of their venture to help bring their inventions and innovations to market. They provide entrepreneurial training and mentorship programs, and assistance with developing business plans.

RIC Centre is a non-profit organization that provides business and technical services to small and medium enterprises (SMEs) to commercialize their innovation. The organization is a door to opportunity for entrepreneurs and researchers in Peel Region. Its goal is to enable you access to the Ontario Commercialization Network and help uncover the best channel to market your innovation. RIC Centre focuses on assisting entrepreneurs in the advanced manufacturing, aerospace and life science sectors.

OCETA is a private, not-for-

profit corporation that supports the commercialization and market acceptance of innovative technologies and environmentally sustainable solutions through stakeholder consultation and the provision of business and technical services.

Together the two groups are currently hosting the Growing Your Business Breakfast Series – 10 consecutive monthly breakfast events to help entrepreneurs fast track commercialization. For more information on the series, visit ric-centre.on.ca.

Increased competition and globalization has forced companies to partner with suppliers, distributors and different business sectors. The leveraging of competitive resources creates synergy. Synergy is a term that describes the exponential benefit that results from the combination of resources. Its underlying ideology is based on the old cliché “two heads are better than one.” With constant innovation and strategic partnership, a company can secure the future of its business operations.

To be competitive, a company must constantly be innovative in its products and services and develop strategic partnerships with other firms to maximize its strengths and minimize its weakness. Businesses should make adequate use of the vast resources available to them. The commercialization networks are excellent resources for entrepreneurs that seek assistance with the commercialization of their innovative inventions. Innovation and strategic partnership is a critical ingredient in the recipe for success in business.

T

Key elements give companies sustainable competitive advantage.

Innovating

and Partnering

Increased competition and globalization has forced companies to partner with suppliers, distributors and different business sectors.

By James Sbrolla

James Sbrolla is a Toronto -based management consultant and can be reached at 416.234.5120 or [email protected].

3� CanadianMeatBusiness January/February 2009 meatbusiness.ca

canadian meat business

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