Finances are among Cattle Feeders’ top issues

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Ryan Kasko, ACFA’s new board chair, talks in this blog about priority issues for the upcoming year.

Non-refundable checkoff

ACFA is working on a plan to collaborate with Alberta Beef Producers to build a new path forward that would include an Alberta Beef Industry Development Fund, Ryan said.

“We will be asking producers to vote in a plebiscite this fall to return to a non-refundable checkoff,” he said. “The money generated will be used to finance marketing activities, research and other projects that will benefit the Alberta beef industry.”

Ryan said the Alberta Livestock and Meat Agency (ALMA) used to provide $20 million for industry research and marketing initiatives. The funding has been eliminated, so it is hoped the checkoff proceeds will at least partly offset the lost funds. “We’re hoping to work with the government to show the value this investment is providing, and to hopefully get more government funding,” he said.

Farm safety

The association is also heavily invested in making sure its members understand recent changes to the Alberta Labour Code. “We’re offering a feedlot safety program to ACFA voting members so that feedlots can get up to speed on farm safety, specifically in reference to those changes,” Ryan said.

Trade

NAFTA is at the top of cattle feeders’ minds. “Although we’re not directly involved in negotiations, we work alongside the National Cattle Feeders’ Association and the Canadian Cattlemen’s Association to support them in their efforts to make sure the beef industry remains part of NAFTA.”

Looking for a new CEO

Bryan Walton, ACFA’s president and CEO, will retire this fall, and a search for a replacement has started.

“We will be sad to see Bryan go,” said Ryan. “He’ll be a hard person to replace. But at the same time, any change provides an opportunity for new ideas, and we’re looking forward to that process.”

You can learn more about Ryan and his work as a cattle feeder in an earlier Meet the team post.

Why graded beef is good for producers and consumers

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Canadian beef is known across the world for its consistently high quality. Here in Alberta, the factors that contribute to great beef production include not only our high standards of animal care, but also our unique weather and farming conditions.

Thanks to a stringent grading system, it’s not only possible to rely on the quality of Canadian beef, but it’s also possible to quantify it.

The Canadian Beef Grading Agency, (CBGA), assesses and grades beef at federally inspected packing plants, based on standards set by the federal government. The five grading criteria are:

  • Maturity (age), as this affects the tenderness of the meat
  • Gender, as the hormone levels in some bulls affects meat colour and tenderness
  • Muscling
  • Fat, including the amount of fat and colour
  • Meat colour, texture and marbling

A top grade will only be assigned if the carcass meets all five quality attributes. The amount of visible marbling will determine the segmentation within Canada’s top grades – Canada Prime, AAA, AA or A. The CBGA also assesses meat yield using a specialized grading ruler and assigns a yield grade. Canada currently has 3 yield grade classes Canada 1, 2 or 3.

Why grading matters to beef producers

Cindy Delaloye, general manager at CBGA, says more than 99 per cent of the meat coming from federally inspected processing plants is graded, even though grading is voluntary.

“The livestock industry sees the value in having their beef graded because it provides a guarantee to their customers that the product in the box is what it says it is,” she said. “In Canada, we’re barbecue demons, so it’s important for us to have the quality and consistency to know that we’re going to have a good eating experience.”

Feedlot operators pay a portion of the grading fee in conjunction with the processor, and grading provides them with an opportunity to command a premium price for a premium product.

What Canadian beef grading means to consumers

Marty Carpenter, CBGA’s board chair, said consumers have learned to trust the grade because the beef they purchase consistently meets expectations.

“We have an exacting grading standard in Canada, whereby if the product doesn’t reach a particular standard in all criteria it doesn’t make the grade,” he said.

Restaurateurs – and retailers particularly – are buying based on quality and want to have confidence that whenever they buy Canadian beef it will have the attributes they expect.

Marty also explained that different cultures value different aspects of the product. “Hispanic buyers in the U.S., for instance, value the fact that Canadian beef is graded on colour as that is an important indicator of freshness to them. Canadians like red meat and white fat. People buy with their eyes,” he said.

Beef grading and exports

Grading is one more way of helping Canadian beef stand out in the global marketplace , helping cement Canada’s reputation as a producer of world-class beef.

Alberta’s agricultural leaders ask government for help with labour crisis

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The Agriculture Industry Labour Council of Alberta (AILCA) has written a letter to the federal and provincial governments asking for support, because it is concerned that proposed changes to two programs intended to help farmers with a worker shortage will make it even harder to access labour.

For many years, Canada’s farmers have struggled with a declining domestic labour pool, resulting in a chronic shortage of workers. Temporary foreign workers are often the only source of labour available to help them continue their operations.

The council believes the proposed changes to the Provincial Nominee Program and the Temporary Foreign Worker Program (TFWP) will complicate the use of these labour lifelines.

Who is AILCA?

AILCA is a council of 22 agricultural producers, and related organizations, representing diverse agri-foods sectors from livestock to food crops and greenhouse growers.

The council recently wrote a letter outlining their concerns to the following ministers:

    • Hon. Patricia A. Hajdu, Minister Employment, Workforce Development and Labour
    • Hon. Ahmed Hussen, Minister Immigration, Refugee, and Citizenship Canada
    • Hon. Christina Gray, Minister of Alberta Labour

The purpose of the letter was to outline in detail the reasons for their concern, and the implications for Canadian agriculture if the government fails to take action to protect their interests.

The AILCA message to Ottawa

Here is a summary of the council’s concerns:

THE PROVINCIAL NOMINEE PROGRAM

The federal government is imposing new requirements on the provinces relating to education, income, language and more. These requirements will severely hinder and limit farmers’ ability to transition temporary foreign workers to permanent resident status.

Some of the issues include:

    • Excessively high-income thresholds which are prohibitive for employers. It also does not consider unique aspects of agricultural employment which might include subsidized housing and the comparatively low cost of rural living.
    • Educational requirements which do not take into account work experience or job skills.
    • Language skills that are more advanced than those required to apply for Canadian citizenship.

The government is taking away the ability of provincial governments to provide solutions tailored to their specific economic needs.

THE TEMPORARY FOREIGN WORKER PROGRAM

The Temporary Foreign Worker Program has many administrative issues that make it a lengthy and complex process for companies to acquire permits for the workers they need:

Service delivery issues:

    • Insufficient communication, leading to refusals. Applications are routinely refused on the grounds of rules or regulations that do not exist or have never been made public. Unannounced and sudden changes to forms, program requirements and wage rates are another common reason for refusal.
    • Increasing service delivery timelines and frequent processing delays, mean applications can take anywhere from one to three months, with no consistency.
    • Workers coming from Mexico are experiencing such delays to their visa applications that they often don’t arrive in time for the start of the season.

Program framework issues:

    • TFWP Cap – Despite the proven, chronic agricultural labour shortage, many employers are subject to a 10 or 20-per-cent cap on the number of TFWs they can hire.
    • Housing – Employment and Social Development Canada officers have been implementing excessive housing requirements based on unpublished, and in some cases, non-existent program rules. Many of them fail to consider the specific situation or requirements of individual employers.
    • Application Streams – The application stream under which employers can apply has been reduced from two to one, resulting in many problems because specific operational needs are not taken into account.
    • Commodity Lists – A TFW can only work in one commodity, or agricultural product group. On a feedlot, for instance, this precludes workers from helping with both livestock and feed crops because those would be considered different commodities.

Audits and inspections:

    • Applications are often delayed due to audits, which can drag on for weeks or even months. This leaves employers without access to desperately needed workers or prevents workers from extending their permits.
    • Unannounced inspections are being held, but the processes that guide those inspections have not been made available to employers. Certain issues such as bio-security and the inspection of businesses located in homes and private residences have not been addressed and are of particular concern.  

What AILCA wants

AILCA stresses the need for leadership from within the federal departments of Employment and Social Development Canada, and Immigration and Refugees and Citizenship Canada, as well as from the provincial government.

AILCA would like to see meaningful, ongoing collaboration on these issues, and has asked the provincial and federal governments to engage with producers and processors to develop realistic labour and immigration policies. They stress this is the only way to successfully grow Alberta’s and Canada’s agriculture and agri-food sector.

Can Canada’s beef producers benefit from online sales?

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This is the second post in our Spotlight on the Speakers series, featuring speakers from February’s Alberta Beef Industry Conference.

In our first post, we looked at the changing faces, places and consumption patterns of the Canadian beef market. This week, we’re learning how the retail trend toward online sales will affect beef producers.

Don Close, vice-president of food and agribusiness research at Rabo AgriFinance, explained that brick and mortar sales are flat, while online sales are growing and evolving. “I don’t think it’s necessarily detrimental to the beef industry,” he said. “It’s more that it provides an opportunity to access consumers via a different channel.”

“The biggest change,” Don said, “will be experienced by beef processors. They should expect changes in where they are delivering, servicing and distributing products to consumers. For most individual producers there will likely not be any meaningful change.”

Online opportunities

For those beef producers keen to take advantage of the trend, the online market offers a unique opportunity to establish their own branded products. “It opens up a new marketplace for individual producers, particularly if they have cattle with an exceptional set of genetics and want to capture a premium price for their premium product,” said Don.

Online sales could potentially provide beef producers with the ability to promote beef to consumers who are more typically non-consumers, or light-consumers, of beef. It could also provide an opportunity to persuade beef eaters to try different cuts or products.

Don explained that the biggest hurdle to creating meaningful sales via the online market is the investment required in branding, marketing and online sales tools.

“The tendency of the consumer is to choose large, national brands with a known identity,” said Don. “They have a high level of trust with those providers and they know what to expect. They are less likely to try the smaller, lesser-known brand.”

The sales and marketing resources necessary to make an impact on the online food market could potentially be more accessible to groups or collectives, rather than individual producers, he added.

You can hear more from Don in this video entitled ‘From the cart to the keyboard: how food purchasing habits will impact the beef industry’.

 

Why our high standards of animal care make Canadian beef the best

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Canada’s beef producers are committed to raising their cattle in a comfortable, low-stress environment. Healthy animals under good care produce a better product. Our producers realize that caring for, and respecting, the animals that feed us is the right thing to do.

“We’re proud of our production practices and how we look after the cattle in our care,” said Bryan Walton, ACFA’s president and CEO. “The way we raise our animals is integral to providing premium Alberta beef to the world.”

Here at ACFA, we have championed several initiatives that help our members meet or exceed best practices and regulations:

National Beef Code of Practice

In association with industry partners and the National Farm Animal Care Council (NFACC), we helped develop the National Beef Code of Practice. The code, which was developed in conjunction with animal welfare and enforcement representatives, as well as experts in beef cattle behaviour, health and welfare, defines the base standards of animal care.

Canadian Feedlot Animal Care Assessment Program

This fully auditable program, which is certified by the Professional Animal Auditor Certification Organization (PAACO), provides cattle feeders with a way to assess their animal care practices and demonstrate their high standards. Consumers increasingly rank animal welfare as an important factor in their buying decisions and this program provides confidence in an integral segment of beef production.

Industry collaboration

We collaborate with important animal care organizations like Alberta Farm Animal Care, and participate in programming such as the Canadian Livestock Transport Certification Program. This is a standardized course offering certification that is recognized throughout Canada and the United States. The program is led by an industry initiative to address the need for increased accountability and improved handling practices in livestock transport. One of the main strengths of Canadian Livestock Transport is that the courses present the current regulations for animal transport in Canada.

The basis for these programs is scientific knowledge about the needs of animals. Through training and experience, and with the guidance of accredited veterinarians and animal nutritionists, our industry members produce healthy, delicious food in an ethical, sustainable, and socially responsible manner.

If you’re still not convinced that Canada’s beef cattle are cared for in the most compassionate, respectful way possible, check out ‘3 feedlot myths busted’.

Foot-and-mouth disease strategy crucial for Canada and cattle feeders

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Foot-and-mouth disease (FMD) is a highly contagious virus that can affect cattle, sheep and swine. When an outbreak hits any livestock producer’s operation, the results can be devastating, with the potential for entire herds, or even an industry, to be decimated.

The Alberta Cattle Feeders’ Association (ACFA), is concerned that Canada is not sufficiently prepared for an outbreak. This needs to be addressed by both the Canadian government and our own industry.

“The Alberta Cattle Feeders’ Association and the National Cattle Feeders’ Association (NCFA) are continuing to elevate the importance of readiness for a foot and mouth disease outbreak in Canada,” said Bryan Walton, ACFA’s president and CEO. “One crucial aspect is access to a vaccine, and a policy around vaccination for FMD in Canada.”

In March 2018, a delegation of government and industry representatives, including Bryan Walton and Ryan Thompson, visited Boehringer Ingelheim (BI) in Lyon, France, to learn more about its production capabilities for an FMD vaccine.

“FMD is a serious issue, so it was good to have an industry-government delegation in Lyon, to see the facility and talk about the path forward,” said Ryan Thompson, NCFA board chair. “We all need to work together to make sure our members are able to have a strategy to deal with an outbreak.”

Some background

The North American FMD Vaccine Bank is a resource jointly administered by commissioners from Canada, the U.S., and Mexico. However, the U.S. is seeking government funding to create a ‘US only’ vaccine bank because, in today’s intensive livestock industry, they see it as the only way to ensure their producers have access to the required number of vaccines, regardless of strain. There is concern that with their own private resource, their support for the North American bank will diminish.

If Canada does not take similar measures it puts the entire beef industry at risk.

Boehringer Ingelheim has the technology to produce sufficient quantities of an effective, DIVA-compliant (Differentiating Infected from Vaccinated Animals) FMD vaccine – potentially within five days of receiving the request.

Next steps

“The meeting has triggered strong interest among both industry and government leaders, in looking at the greater use of vaccination strategies in Canada’s livestock industry, in the event of an FMD outbreak,” said Bryan. “Greater use of vaccination would require several other strategies to be fully and effectively implemented by industry — like an immediate ‘voluntary cease movement’ – also referred to as a 48 or 72-hour standstill – and use of packing plants to slaughter for disposal rather than consumption.”

Vaccination would greatly reduce the need for a ‘stamping out’ strategy, involving mass depopulation and disposal. That would be difficult, if not impossible, to implement in larger operations, and is increasingly considered unacceptable by the general public.

“A very pertinent question for Canada relates to how we re-gain FMD-free status after the deployment of the vaccine,” continued Bryan. “It is most likely that the process of regaining FMD free status in Canada or North America, as recognized by the World Organization for Animal Health, OIE, would take a year or more from the incidence of an outbreak. This will depend in part on whether the control measures involve ‘stamping out’, which would enable faster recognition, or vaccination, which would result in a longer time for recognition. It is important to note that once OIE recognition of FMD-free status is obtained, it would take longer still to re-establish market share.”

Industry members and government have set up a meeting for April 20, 2018, to begin discussion of a ‘made in Canada’ FMD vaccination strategy, taking into account what that would require from both industry and government.

FMD is just one of ACFA’s initiatives aimed at helping beef producers raise healthy animals in a low-stress environment. You can learn about other actions being taken in ‘Animal health initiatives from Alberta’s cattle feeders’.

New partnership gives a boost to transpacific trade

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Canada’s beef producers rely on international trade to keep their industry growing in a global economy. That’s why the National Cattle Feeders’ Association (NCFA) was thrilled when the Government of Canada announced it has reached a trade deal with ten of Asia-Pacific’s fastest growing economies.

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) will provide tariff-free and/or competitive access to key markets in the Asia-Pacific region. It is to be signed in March and must then be ratified by the Canadian Parliament and by the governments of the ten other member countries.

We spoke with Claire Citeau, executive director of the Canadian Agri-Food Trade Alliance (CAFTA), to learn why the agreement is so important for Canada’s agri-foods producers, including beef producers.

“Overall the CPTPP will reduce tariffs and non-tariff barriers, open new, growing markets for Canadian agri-food products, and support jobs and prosperity here at home,” said Claire. “It will provide the sector with unprecedented access to the important Japanese market and rapidly growing Asian markets like Vietnam and Malaysia.

“The 11 countries in the CPTPP region include some of our main export markets, including Japan and Mexico, as well as seven new countries,” continued Claire. “Japan in particular is the big prize as it is our third export market and a high value market for Canadian agriculture and agrifood  – it is the largest economy in the CPTPP region, and the third largest in the world. Vietnam and Malaysia are other countries that could represent expanding markets.”

Some of Canada’s main competitors, such as Australia, have free trade agreements with countries in this region, which has given them a huge advantage over Canada when it comes to exports. The CPTPP will help to level the playing field.

Since the U.S. dropped out of the Trans-Pacific Partnership, and does not have free trade agreements with Japan, CPTPP will give Canadian producers a distinct advantage over the U.S. in the Japanese market.

Why speedy ratification is crucial

John Weekes, senior business advisor at Bennett Jones, former ambassador to the WTO and Canada’s chief negotiator for NAFTA, said he attributes Japanese leadership to TPP coming back to life again as the CPTPP – because they saw it as an important way to fill the vacuum that was left in the Asia-Pacific area when the U.S. retreated from the original TPP negotiations early in 2017. The Japanese came to the conclusion that it would be important to have a trade agreement with the sort of provisions that are in the CPTPP, in that part of the world. If Canada had turned its back on CPTPP, we could have faced not having a trade agreement with the Japanese for at least a decade.

John Weekes speaking at a Canadian International Council event in Ottawa on February 12, 2018.

When addressing attendees at the Alberta Beef Industry Conference in Red Deer on February 23, 2018 John stated,

Canada should approve CPTPP in parliament as soon as possible so we get in on the ground floor on tariff reductions and secure lower tariffs as quickly as possible.

Claire Citeau explained that the CPTPP will enter into force 60 days after at least six members ratify it. “We may lose the ‘first mover advantage’ if Canada is not among the first countries to ratify,” she said. “If our competitors ratify and implement the CPTPP before Canada, they will benefit from the initial rounds of tariff cuts and we won’t, putting us at a further disadvantage.”

“Having better and more competitive access to markets like Japan will create further growth and help create jobs in urban and rural areas in Canada,” concluded Claire.

Stay tuned for future blog posts, in which we will keep you updated on the ratification process.

How population changes are driving the beef industry

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This is the first in our Spotlight on the Speakers series, featuring speakers from February’s Alberta Beef Industry Conference. This week, Andrew Ramlo, executive director of Urban Futures, spoke with us about the changing faces, places and consumption patterns of the Canadian beef market.

How age, ethnicity and lifestyles are changing the domestic market

Andrew, whose company, Urban Futures, specializes in demographics, explained that the domestic market for beef, and indeed all agricultural products, is undergoing a significant change on three major fronts:

Age: For the first time in decades, the baby boomers are no longer the dominant generation in terms of numbers. There are now more Millennials and Generation Xers than post-war boomers. This shift is having an impact on all factors of the market, including  what people consume and how they consume it.

“This younger generation demands to know where their food comes from, and how it was produced, giving rise to the popularity of niche products such as hormone-free, grass-fed and organic,” Andrew said. They are also increasingly in tune with diet and health, and this affects their food choices.

Lifestyle: “One of the major drivers of the market will be convenience,” Andrew said. “People have busy lives and kids to feed, so they need to have convenience in the ways things are prepared and packaged.”

Ethnicity: With a population that is increasingly ethnically diverse, the types of food eaten by Canadians is changing, and so is the way it is purchased and prepared. Canadian food producers must pay attention to the ethnicities of their consumers, and their eating habits or preferences.

An export market driven by growth

While the domestic market is being driven more by change than by the potential for significant growth, growth can be expected in the export market.

“The Asia-Pacific markets are going to be very significant,” said Andrew. “Particularly in China, there are a lot of consumers who have not historically eaten beef, but who are starting to be able to afford it.”

How immigration could affect beef production

We know immigration is affecting what Canadians eat, and how they prepare their food. But there is also the potential for more immigrants to be employed in the beef production industry.

“The Canadian government has increased their immigration targets from what it has historically been – between 275,000 and 300,000 – to about 340,000 by 2021,” said Andrew. “This is being done by and large in response to our aging population; to give us the ability to fill in the labour force as the baby boomers head toward retirement.”

“The government really needs to look at aspects of our labour market and do more targeted recruitment among potential immigrants.”

You can read more about the impact of demographics on the beef industry in Changing demographics mean changes at the dinner table.

Watch for future ‘Spotlight on the speakers’ posts.

6 issues cattle feeders will discuss at the Alberta Beef Industry Conference

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Beef producers from all over Alberta will convene in Red Deer next week for the Alberta Beef Industry Conference.

This annual event is a chance for industry members to find out what’s new and network with others in the industry. As the event approaches, here’s a look at some of the pressing issues ACFA has been following, and that industry members will likely discuss.

#1 The Canadian Agricultural Partnership (CAP)

The government has allocated $3 billion to invest, over the course of five years, in five areas: innovation and research; environmental sustainability; risk management; product and market development and diversification; and public trust. ACFA will look at devising projects and programs to advance the cattle feeding industry, which could attract funding under CAP.

#2 Labour

The Federal Department of Employment and Social Development Canada (ESDC) is currently reviewing the Temporary Foreign Worker Program. This program is a life-saver for cattle feeders when they are unable to find workers from within the Canadian workforce. Past government reviews have accepted ACFA recommendations but there is still room for improvement.  ACFA will continue to be engaged in this file.

#3 Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)

Last month the government announced it will sign onto the new CPTPP trade agreement. This is good news for the beef industry and should result in reduced tariffs in a number of export markets, especially Japan. ACFA will continue communicating with government to stress the importance of the agreement for Canada’s beef industry until it is fully approved and ratified by Parliament.

#4 Other trade issues

NAFTA and trade with China are two other pressing trade issues of great importance to cattle feeders. In June 2016, the U.S. secured approval from China for greater access to that market. Canadian producers need the same access. A new pilot program to export fresh and chilled Canadian beef to China is expected in 2018, but ACFA will continue to press for the same access given to the U.S.

#5 Competitiveness

About 10 years ago, ACFA commissioned a study to assess the competitiveness of cattle feeding in Alberta. The industry’s ability to compete effectively in the international market will continue to be a priority and there will be discussions about whether it is time to update this study.

#6 Industry governance and financing

The mandatory levy on beef sales, known as the check-off, is used to fund research and marketing activities on behalf of the entire industry. ACFA and the Alberta Beef Producers (ABP) have come together to devise a new governance and funding model for the provincial beef industry, and its use of check-off dollars. A plebiscite may be required later in 2018 for a final decision.

As well as conversation and networking, the conference also features a full program of speakers, including former Prime Minister Stephen Harper.

For anyone interested in Alberta’s beef industry, its challenges and opportunities, this is a must-attend event.

Excellent reasons to attend this year’s Alberta Beef Industry Conference

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On Feb 21-28, members of Alberta’s beef producing industry and their suppliers will gather at the Sheraton Red Deer Hotel, along with journalists, politicians and others interested in beef and the people who bring it to our tables.

The 15th annual Alberta Beef Industry Conference is a chance to find out what’s new, learn about the industry’s achievements and challenges, and make connections.

As always, the conference is packed with a great lineup of speakers. Here are a few highlights:

Andrew Ramlo: This strategic management consultant specializes in helping organizations develop strategies to address industry challenges and opportunities. He will be sharing his insights into everything from the changing consumption patterns of domestic and export markets, to issues of production and labour force trends.

Mark Sheridan: The president of Hester Creek Estate Winery will speak about the evolution of B.C.’s wine industry and the value the Vintners Quality Alliance has brought to wine producers in British Columbia.

John Weekes: As a senior adviser with Bennett Jones, John has worked with the National Cattle Feeders’ Association on many trade files, providing business and strategic advice. He will comment on NAFTA, Canada’s trade agreement with the United States and Mexico; the EU and the implementation of the Comprehensive Economic and Trade Agreement (CETA); efforts to bring the Trans-Pacific Partnership (TPP) into force without the U.S.; and trade relations with China and India.

Bruce Cameron: This veteran pollster will explore the challenges our democracy faces in a world where truth is relative. Using timely examples, he will show how integrating new social media metrics with established polling techniques offers a way to reduce margins of error and restore truth in politics.

The conference promises to be packed with great information. To learn more about these and other speakers, visit the conference program page.