The Meat Industry
First Class: The Meat Industry - Canadian Meat Business First Class: The Meat Industry - Canadian Meat Business
September/October 2009 First Class: The Meat Industry Hall of Fame Halal Market Opportunities Canadian Publications Mail Product Sales Agreement 41689029 Animal Welfare Innovations Guest Editorial: Canada’s Opportunity pg.5 meatbusiness.ca $6.00
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September/October 2009<br />
First Class:<br />
<strong>The</strong> <strong>Meat</strong> <strong>Industry</strong><br />
Hall of Fame<br />
Halal Market<br />
Opportunities<br />
Canadian Publications Mail Product Sales Agreement 41689029<br />
Animal Welfare Innovations Guest Editorial:<br />
Canada’s Opportunity<br />
pg.5<br />
meatbusiness.ca $6.00
Click on CANADA or YES GROUP INC or call 1-800-465-3536<br />
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Volume 8, Number 5 September/October 2009<br />
5 Guest Editorial<br />
by Robert de Valk<br />
6 First Class: <strong>The</strong> <strong>Meat</strong> <strong>Industry</strong> Hall of Fame<br />
11 Retort Process Offers Opportunities<br />
6<br />
12 A Matter of Ethics, Economy and Taste<br />
by Dominique Bastien<br />
14 Which Preservative to Use?<br />
16 Increasing Output Without Sacrificing Quality<br />
by David Rizzo<br />
20 <strong>The</strong> Next Generation of Probiotics<br />
21 NAMP Elects New President and Board<br />
22 Assembly Line<br />
24 <strong>Industry</strong> Roundup<br />
26 Eliminating Back Breaking Work in the Food <strong>Industry</strong><br />
by Del Williams<br />
28 Cross Country News<br />
30 Faith in the Market: Halal Opportunities<br />
by M. Eshan Sairally<br />
32 Get your Business Ready for the Upswing<br />
by David Filice<br />
33 Events Calendar<br />
12<br />
38 <strong>Meat</strong> <strong>Industry</strong> Business Watch<br />
by James Sbrolla<br />
22<br />
26<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business
| Guest Editorial |<br />
September/October 2009 Volume 8 Number 5<br />
PUBLISHER<br />
Ray Blumenfeld<br />
ray@meatbusiness.ca<br />
Canada's Competitive<br />
Food Opportunity<br />
EXECUTIVE EDITOR<br />
Alan MacKenzie<br />
alan@meatbusiness.ca<br />
CONTRIBUTING WRITERS<br />
Robert de Valk, Dominique Bastien, David Rizzo,<br />
Del Williams, M. Eshan Sairally, David Filice,<br />
James Sbrolla<br />
CREATIVE DIRECTOR<br />
Krista Kline<br />
FINANCE<br />
Jerry Butler<br />
Canadian <strong>Meat</strong> Business is published<br />
six times a year by We Communications West Inc.<br />
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Printed in Canada.<br />
ISSN 1715-6726<br />
F<br />
or a country to have a<br />
competitive meat industry, a<br />
number of prerequisites have<br />
to be in place. One is that the country<br />
has to be able to grow a supply of<br />
competitively priced feed grains. This<br />
requires a fertile land base, as well as<br />
access to sufficient water, fertilizer and<br />
a supportive climate. Canada has all of<br />
this, and since available agricultural<br />
land is combined with a small<br />
population, Canada’s food production<br />
abilities far exceed the consumption<br />
demands of Canadian consumers.<br />
This picture can also be painted<br />
for meat and poultry production,<br />
making Canada one of only a handful<br />
of countries that can produce and<br />
manufacture more meat and poultry<br />
than can be consumed.<br />
As some economists would observe,<br />
Canada has a competitive advantage<br />
in the production of meat and<br />
poultry. Looking ahead, experts have<br />
calculated that food production will<br />
have to double over the next decade to<br />
feed three billion more consumers by<br />
2050. This suggests Canada has at least<br />
an opportunity, if not a responsibility,<br />
to ensure our agricultural resources<br />
are used to the full extent possible.<br />
News from the state of Utah that the<br />
use of roadside acres for agricultural<br />
production is being tested shows<br />
that the future is approaching more<br />
quickly than many imagine. Producing<br />
only enough food to supply Canadian<br />
consumers is not an acceptable option<br />
for Canada, as global demand for food<br />
continues to grow.<br />
<strong>The</strong> opportunity to utilize a<br />
country’s competitive advantage<br />
in meat and poultry production is<br />
well recognized by the firms making<br />
up the international meat market.<br />
Consolidations are taking place by<br />
companies based in one of the lowestcost<br />
producers in the world. With the<br />
recent merger of Perdigao and Sadia<br />
S.A., a new company, Brazil Foods S.A.,<br />
was formed and this firm is currently<br />
the largest poultry producer in the<br />
world. By purchasing a controlling<br />
interest in Pilgrim’s Pride, JBS<br />
S.A. adds to its poultry operations,<br />
but is already the world’s largest<br />
beef producer, and Brazil’s largest<br />
multinational food company. <strong>The</strong><br />
financial strength of these companies<br />
continues to improve, supported by<br />
friendly governments. <strong>The</strong>re is no<br />
doubt that the government of Brazil<br />
for the past 20 years has supported and<br />
pushed the development of a low cost<br />
feed grain supply. Firms were set up to<br />
take advantage of this solid foundation<br />
to become world leaders. Why has this<br />
not happened in Canada?<br />
Part of the answer lies in Canada’s<br />
divided jurisdiction when it comes to<br />
food and agriculture. It is difficult in<br />
Canada to develop national strategies<br />
to exploit the competitive advantage<br />
in food, meat and poultry production.<br />
Interestingly, some sectors overcoming<br />
the jurisdictional issues are the chicken<br />
and turkey industries, operating under<br />
supply management. For those sectors,<br />
the federal-provincial issues have been<br />
“organized,” by way of legislation.<br />
<strong>The</strong> federal and provincial ministers<br />
of agriculture recently decided to<br />
adopt traceability by 2010. On food<br />
safety, ministers agreed to support<br />
a national science-based approach.<br />
<strong>The</strong>se are good decisions, but the<br />
key is implementation. <strong>The</strong> meat and<br />
poultry industries should be a high<br />
priority for Canada, and have their<br />
own federal department, covering the<br />
entire supply chain from producer<br />
to consumer. However, there is not<br />
federal department, industry players<br />
are weak, and there is no common<br />
vision.<br />
Unless this picture changes,<br />
Canadian firms will be the target of<br />
international players, and Canada’s<br />
roll in the international meat and<br />
poultry business will continue to<br />
decline. This does not need to be the<br />
outcome, because Canada’s ability<br />
to be a niche marketer has been well<br />
documented over the years. Where is<br />
the leadership going to come from to<br />
capture this opportunity for Canada?<br />
Robert DeValk is an Ottawa-based food<br />
consultant who has served the Canadian meat<br />
and poultry industry for over 25 years.<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business
| Cover Stor y |<br />
Photos: <strong>Meat</strong> <strong>Industry</strong> Hall of Fame<br />
Former CBS News anchor Bill Kurtis will be<br />
the Keynote Speaker at the MIHOF induction<br />
ceremony in Chicago.<br />
Heads of the Class<br />
Inaugural list of inductees elected to the <strong>Meat</strong> <strong>Industry</strong> Hall of Fame.<br />
T<br />
he initial class has been elected to<br />
the newly formed <strong>Meat</strong> <strong>Industry</strong><br />
Hall of Fame (MIHOF).<br />
<strong>The</strong> 21 members – announced in<br />
August – were chosen in voting by the<br />
hall’s Board of Trustees from among<br />
more than 70 executives, researchers,<br />
innovators and association leaders across<br />
all sectors of the industry.<br />
“We are thrilled to include in our<br />
first class a group of truly outstanding<br />
leaders,” Dan Murphy, executive director<br />
and MIHOF co-founder, said in a release.<br />
“<strong>The</strong>se are men and women credited with<br />
fostering much of the profound change,<br />
remarkable progress and substantive<br />
success of the industry. We’re proud to<br />
celebrate their legacies.”<br />
<strong>The</strong> induction ceremony will take place<br />
Oct. 27, 2009, at Chicago’s Hard Rock<br />
Hotel. “That will be a night to honour a<br />
virtual ‘who’s who’ of the industry,” added<br />
Chuck Jolley, MIHOF president and cofounder.<br />
Acclaimed television host, network news<br />
anchor, author and business entrepreneur<br />
Bill Kurtis has been named the keynote<br />
speaker for the event.<br />
During his 40 years in broadcasting,<br />
Kurtis, who served as the CBS Morning<br />
News anchor and was a long-time<br />
newscaster at CBS Television affiliate<br />
WBBM in Chicago, became best-known<br />
as the producer and host of the popular<br />
Investigative Reports, Cold Case and American<br />
Justice programs on the A&E Network. He<br />
recently gained even greater popularity<br />
among a new generation of fans as a<br />
result of his work as pitchman for AT&T<br />
Mobility, spoofing his “serious journalist”<br />
persona in a series of ads with tennis star<br />
Andy Roddick, Olympic gold medalist<br />
Michael Phelps and boxing champion<br />
Floyd “Money” Mayweather.<br />
In his speech to the members and<br />
guests at the MIHOF dinner, Kurtis will<br />
also discuss his role as an entrepreneur in<br />
launching Tallgrass Beef, a company that<br />
has built a network of family farmers and<br />
ranchers raising grass-fed cattle. In 2005,<br />
Tallgrass Beef became the first grassfed<br />
beef company to market its product<br />
in Chicago when the legendary Harry<br />
Caray’s Restaurant began selling its steaks.<br />
Kurtis’s 10,000-acre Red Buffalo Ranch,<br />
which borders the small town of Sedan,<br />
Kan., is a working cattle ranch located in<br />
the one of last remaining areas of North<br />
America that still features untouched tall<br />
grass prairie.<br />
Future Canadian inductees<br />
<strong>The</strong>re are no Canadians in the<br />
inaugural class, but Murphy, a former<br />
industry editor and co-founder of<br />
the hall, noted the hall considers the<br />
industry to be a “North American<br />
industry.” He said there are plans to<br />
have Canadian individuals named to the<br />
hall in next year and in future classes.<br />
If you have an idea of which Canadian<br />
meat industry pioneers and innovators<br />
Canadian <strong>Meat</strong> Business September/October 2009<br />
meatbusiness.ca
should be named to the hall in future<br />
classes, we’d love to hear from you. Email<br />
your thoughts to alan@meatbusiness.ca<br />
– and we’ll let MIHOF officials know<br />
who you think is deserving of<br />
this honour.<br />
Courtesy of MIHOF, here are<br />
biographies of some of the inductees.<br />
Bios on the remaining individuals will<br />
be featured in the next issue of Canadian<br />
<strong>Meat</strong> Business.<br />
Donald L. Houston<br />
(posthumous)<br />
Don Houston served as administrator<br />
of the U.S. Food Safety and Inspection<br />
Service (FSIS) from 1979 to 1987, and the<br />
U.S. Department of Agriculture’s (USDA)<br />
from 1987 to 1988.<br />
He was born in East St. Louis, Illinois<br />
in 1934. After receiving a bachelor’s and<br />
Doctor of Veterinary Medicine degrees<br />
from the University of Illinois, Dr.<br />
Houston served as a captain in the U.S.<br />
Army Veterinary Corps from 1959 to 1961.<br />
He then joined the USDA as a veterinary<br />
meat inspector.<br />
Houston was cited numerous times<br />
for his efforts to promote opportunites<br />
for women and minorities in the federal<br />
government. He initiated the Executive<br />
Staff Officer training program and<br />
the Career Develpoment Program for<br />
Women.<br />
His distinguished career was cut short<br />
by cancer; he died on Feb. 19, 1988.<br />
Temple Grandin<br />
Temple Grandin is arguably the most<br />
accomplished and well-known adult<br />
with autism in the world. She has been<br />
featured on several major TV programs<br />
and national publications in the U.S.<br />
Grandin didn’t talk until she was over<br />
three years old, communicating her<br />
frustration instead by screaming and<br />
humming. In 1950 she was diagnosed<br />
as autistic and her parents were told she<br />
should be institutionalized. In her book,<br />
Emergence: Labeled Autism, she stunned<br />
the world because until its publication<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business
| Cover Stor y |<br />
most professionals assumed being<br />
diagnosed autistic was a death sentence to<br />
achievement in life.<br />
She earned a bachelor’s degree in<br />
psychology from Franklin Pierce College<br />
in 1970, a master’s degree in Animal<br />
Science from Arizona State University<br />
in 1975 and her Ph.D. in animal science<br />
from the University of Illinois in 1989.<br />
Eventually Grandin used her ability to<br />
“see” the world as animals do to launch a<br />
successful livestock handling equipment<br />
design firm. She has designed the facilities<br />
in which half of all U.S. cattle are handled,<br />
consulting for such firms as Cargill, Swift<br />
& Company, Burger King, McDonald’s<br />
and others.<br />
Frank Perdue (posthumous)<br />
Frank Perdue was born in 1920, the<br />
same year that his father, Arthur W.<br />
Purdue, built a chicken coop in the back<br />
of his family’s Salisbury, Maryland home<br />
and entered the egg business. In 1939<br />
Frank left college to become Perdue<br />
Farms’ third full-time employee. By<br />
1950, when he took over leadership, the<br />
company boasted 40 emloyees. He grew<br />
the company tremendously, investing in<br />
grain facilities, feed mills and a soybean<br />
refinery. Eventually he expanded into<br />
fresh poultry.<br />
Perdue Farms became the No. 3 poultry<br />
company in the U.S. – with more than<br />
20,000 associates, operations in 15 states<br />
and a production of more than 50 million<br />
pounds of poultry per week. Perdue served<br />
as chairman of the executive committee<br />
of the company’s board of directors until<br />
his death at age 84.<br />
Eventually Perdue became the first<br />
hands-on CEO to earn fame outside his<br />
industry as the company’s advertising<br />
spokesman. His first TV commercial<br />
in1971 was ranked by Advertising Age<br />
magazine as one of the best campaigns of<br />
the year.<br />
Jimmy Dean<br />
Jimmy Dean was one of the consummate<br />
American entertainers of the 1950s and<br />
1960s. A country music singer-songwriter,<br />
TV variety show host and actor, Dean won<br />
a Grammy Award in 1961 for his No. 1 hit<br />
“Big Bad John.” More importantly, he was<br />
one of the few celebrities – Paul Newman<br />
being another – to successfully launch a<br />
food company that not only traded on his<br />
fame, but became a category leader in its<br />
own right.<br />
Born on a farm in Plainview, Texas<br />
in 1928, Dean grew up dirt poor. At 18<br />
he joined the U.S. Air Force and while<br />
stationed at Bolling Air Force Base near<br />
Washington, D.C. he launched his career<br />
as an entertainer, singing songs spiced<br />
with some tall Texas tales.<br />
In 1968, as his show business career<br />
started to wind down, Dean opened his<br />
first fresh pork sausage plant in Plainview,<br />
Texas and soon expanded into Louisiana<br />
and Oklahoma. By 1972 he’d stopped<br />
recording regularly, but the Jimmy Dean<br />
Sausage Co. had opened a new plant in<br />
Oscelo, Iowa and Dean took a more active<br />
role in marketing and operations.<br />
By 1984, when he sold his company to<br />
Sara Lee, the Jimmy Dean brand was the<br />
No. 1 breakfast sausage in America.<br />
Lawrence D. Starr<br />
(posthumous)<br />
Lawrence Starr was a Kansas City native,<br />
philanthropist and business leader who<br />
turned Koch Equipment into a world<br />
leading supplier of food processing and<br />
packaging equipment. Starr received a<br />
bachelor’s degree in biology from the<br />
California Institute of Technology in<br />
1953. His advisors were Nobel Laureate<br />
winners Dr. Linus Pauling and Dr. George<br />
Beadle, who later became president of the<br />
University of Chicago. In 1955 he earned<br />
a Master’s degree in food technology from<br />
the Massachusetts Institute of Technology,<br />
then entered the U.S. Army, serving<br />
as an undercover agent with the Army<br />
Inteligence Service in West Germany.<br />
Upon returning to Kansas City, Starr<br />
worked at the family business – Koch<br />
Supplies Inc. – in various management<br />
positions. He took over from his father<br />
in 1966 and created an industry-leading<br />
company providing equipment to the<br />
meat, food processing and packaging<br />
industries.<br />
Starr was recognized as a pioneer<br />
in introducing vacuum packaging<br />
technology in the U.S., but his global<br />
vision led him to focus on international<br />
opportunities. Koch eventually built meat<br />
processing facilities in the former Soviet<br />
Union, Poland, Hungary, the Czech<br />
and Slovak Federal Republics, China,<br />
Micronesia, Trinidad and Mexico.<br />
Philip M. Seng<br />
As president and CEO of the U.S.<br />
<strong>Meat</strong> Export Federation (USMEF), Phil<br />
Seng oversees the group’s operations<br />
worldwide, providing direction for<br />
USMEF strategies and priorities in<br />
international programs, research,<br />
technical services, industry relations<br />
and global communications. He also<br />
serves as the primary spokesman for<br />
USMEF and other exporting interests to<br />
government and private entities regarding<br />
international trade policy and foreign<br />
market development issues related to U.S.<br />
red meat products.<br />
Raised on an Iowa farm, Seng was<br />
UMEF’s Asian director for six years and<br />
was named president and COO in January<br />
1990. Fluent in Japanese, he played a<br />
central role in opening the Japan’s beef<br />
market and is an authority on Japan’s<br />
complex distribution system.<br />
Louis “Mick” Colvin<br />
During his 55 years in animal<br />
agriculture, Mick Colvin worked as a<br />
farm manager and herdsman, earning<br />
the coveted John B. Memorial Trophy<br />
for Herdsman of the Year in 1963.<br />
He then served as field man for the<br />
American Angus Association in 1968,<br />
and he established Colvin Angus Farm<br />
soon afterward. By 1978, Colvin’s vision,<br />
integrity and determination led him<br />
to embark on his most noted role as a<br />
brand creator and beef marketer with the<br />
Certified Angus Beef (CAB)brand.<br />
He believed that quality and consistency<br />
would result in increased consumer<br />
demand for beef, and the success of CAB<br />
was arguably the key driver of a massive<br />
paradigm shift in the beef industry, as it<br />
ushered in the era of specification-based,<br />
value-added, brand name beef and beef<br />
products.<br />
As CAB executive director for 21 years,<br />
Colvin took the concept of identifying and<br />
marketing beef with consumer-focused<br />
quality specifications to a worldwide<br />
brand. CAB product became the<br />
benchmark for quality within the food<br />
industry and a catalyst for consumerdriven<br />
approaches to cattle production<br />
and beef marketing. During 2008, 634<br />
million pounds of CAB products were sold<br />
to consumers throughout the U.S. and in<br />
45 other countries, including Canada.<br />
Continued on Page 10<br />
Canadian <strong>Meat</strong> Business September/October 2009<br />
meatbusiness.ca
| Cover Stor y |<br />
Richard L. Knowlton<br />
Richard Knowlton began his career at Hormel Foods in<br />
1956 as merchandising manager. He became the company’s<br />
president and COO in 1979 and chairman and CEO in 1981. He<br />
managed Hormel Foods to consistent profitability and propelled<br />
the company into the future by spearheading a company-wide<br />
emphasis on development of value-added, convenient food<br />
produtcts.<br />
In one 18-month period in the 1980s Knowlton spurred<br />
Hormel to introduce 134 new products. On his watch Hormel<br />
acquired turkey processor Jenni-O Foods, a catfish company<br />
and Chi-Chi’s brand line of ethnic and Mexican foods, vastly<br />
expanding the company’s shelf presence, market share and top<br />
and bottom lines.<br />
In 1992 Knowlton won the Horatio Alger Award, a recognition<br />
he shares with such luminaries as Hank Aaron, Henry Kissinger,<br />
Maya Angelou, Gen. Colin Powell and Tom Brokaw.<br />
Richard E. Lyng (posthumous)<br />
Richard Lyng served as Secretary of Agriculture under U.S.<br />
President Ronald Reagan from 1986 to 1989. Born in San<br />
Francisco, he earned a bachelor’s degree from Notre Dame<br />
University in 1940, then served in the U.S. Army during the<br />
Second World War. Fellow soldiers, impressed with Lyng’s<br />
baritone voice, urged him to explore a music career after the war<br />
– which he did, scoring a series of regional hits with a doo-wop<br />
group called the Ding-a-Lyngs.<br />
In 1973 Lyng was named president of the American <strong>Meat</strong><br />
Institute, a post he held until 1979. During that time he worked<br />
for 1976 Republican president nominee Gerald Ford by heading<br />
up a group called “Farmers for Ford.” Four years later he assisted<br />
Ronald Reagan as the campaign’s co-director of the farm and<br />
food committee. When President Reagan took office in 1981 he<br />
named Lyng Deputy Secretary of Agriculture, where he worked<br />
as the department’s lobbyist.<br />
After the passage of the 1985 farm bill, then-USDA Secretary<br />
John Block resigned and President Reagan nominated Lyng. At<br />
67 Lyng became the oldest secretary to ever take office in the<br />
U.S. During his term he dealt with many pressing farm issues,<br />
including a devastating 1988 drought, for which he helped push<br />
a $4 billion relief bill for farmers and livestock producers through<br />
Congress.<br />
Robert L. Peterson (posthumous)<br />
Bob Peterson began his career as one of IBP Inc.’s original<br />
cattle buyers when the company was founded in 1961. He was<br />
named CEO of the company in 1980 and chairman in 1981.<br />
Following IBP’s purchase by Tyson Foods, he served on Tyson’s<br />
board of directors until November 2003, when he resigned for<br />
health reasons.<br />
Peterson was instrumental in re-shaping the economics of the<br />
entire meat business. During the 1970s he turned the company’s<br />
innovative “Cattle Pak” boxed beef concept into the industry<br />
standard. Before IBP’s Dakota City, Nebraska plant pioneered the<br />
idea of a “disassembly line” cattle were routinely slaughtered at<br />
Midwestern packing plants in the U.S. the swinging beef was then<br />
shipped in trucks or railcars to breaking operations, generally<br />
located near big cities in the east. From there, primal cuts were<br />
fabricated, wrapped in butcher paper and distributed to steak<br />
cutters, grocery stores and restaurants for final portioning and<br />
packaging by skilled union butchers.<br />
Peterson changed all that by centralizing slaughter, fabrication<br />
and vacuum packaging at a single plant. In the 1980s he<br />
spearheaded a similar high-volume, streamlined breaking and<br />
packaging process in the pork industry, turning the company’s<br />
newly acquired Storm Lake, Iowa pork plant into a pioneering<br />
study of how to actually implement the hoariest of all business<br />
clichés: taking costs out of the system.<br />
<strong>The</strong> remaining inductees are:<br />
• Dell Allen, Ph.D., former professor at Kansas State<br />
University and vice president of technical services and food<br />
safety for Cargill <strong>Meat</strong> Solutions<br />
• Donald Tyson, former senior chairman of Tyson Foods<br />
• Gary C. Smith, Ph.D., professor at Colorado State University<br />
• Joseph Luter III, former chairman and CEO of Smithfield Foods<br />
• Paul Engler, founder of Cactus Feeders<br />
• Ray Townsend, founder and former chairman, Townsend<br />
Engineering<br />
• Rosemary Mucklow, former executive director, National<br />
<strong>Meat</strong> Association<br />
• Russell Cross, Ph.D., professor and administrator, Texas<br />
A&M University<br />
• Mel Coleman SR. (posthumous), pioneer in raising<br />
hormone- and antibiotic-free cattle<br />
• Kenneth Monfort (posthumous), former CEO, Monfort Inc.<br />
Formed in 2008, MIHOF is a permanent repository for the<br />
accomplishments of the meat, poultry and livestock industries’<br />
leading figures and epic events. Nominations are solicited annually<br />
and are voted on by trustees representing livestock production,<br />
meatpacking, processing, trade associations and scientific research.<br />
- staff<br />
10 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
Retort Process Offers Opportunities<br />
BIC helps develop new packaging for retail and foodservice sectors<br />
T<br />
he Beef Information Centre<br />
(BIC) has helped develop new<br />
beef packaging options for<br />
both retail and foodservice.<br />
Flexible retort pouch packaging<br />
provides a significant opportunity to<br />
add value to beef and strengthen beef’s<br />
position in the ready-to-serve market.<br />
Retorting is a process that uses heat<br />
and pressure to cook vacuum sealed<br />
pre-packaged meat. Since the meat is<br />
cooked in the package, the package<br />
must be strong enough to withstand<br />
relatively high temperatures (100-130<br />
degrees C).<br />
John Baker, BIC’s executive director<br />
of trade marketing, says retort<br />
processing used to be limited to the use<br />
of glass and metal containers. Now, the<br />
use of flexible pouches has reinvented<br />
retort processing, making it ideal for<br />
reduced heating times, enhanced<br />
graphics and greater shelf appeal.<br />
“<strong>The</strong> process is suitable for any beef<br />
cut, resulting in restaurant quality beef,<br />
whether presented as whole muscle,<br />
beef strips, crumble or cubes,” he says.<br />
Retort processing improves product<br />
eating consistency regardless of age and<br />
grade, especially for hip and chuck cuts,<br />
producing fork-tender beef without<br />
requiring aging time or other process<br />
control like mechanical tenderizing<br />
and moisture enhancement/<br />
marination. This creates an excellent<br />
opportunity to utilize secondary<br />
cuts from commercial/mature beef,<br />
no matter what the grade, that in<br />
the past would only be suitable for<br />
ground and/or restructured products,<br />
creating an opportunity to capture<br />
higher premiums.<br />
BIC performed both product and<br />
consumer testing of retort processed<br />
beef and results are extremely<br />
positive. <strong>The</strong> process produces forktender,<br />
moist beef and consumers<br />
participating in the testing said it had<br />
a favourable appearance and taste with<br />
over 85 per cent saying they like or<br />
extremely like the product. Not only<br />
did the flexible pouches have a higher<br />
quality perception over other retorted<br />
packaged formats (cans and glass<br />
jars), consumers liked the fact beef<br />
was prepared using no preservatives<br />
and that retorted beef maintains all<br />
the nutritional benefits of eating<br />
lean beef.<br />
<strong>The</strong> retort process results in products<br />
that are suitable for many existing and<br />
unique markets, including ritualistic<br />
preparation techniques required for<br />
foods produced as halal or kosher.<br />
“<strong>The</strong> sealed package allows for<br />
segregation of halal and kosher<br />
products in production and at point of<br />
purchase,” notes Baker. “This provides<br />
the opportunity to supply this growing<br />
market segment, including grocery<br />
retailers, hotels, campuses, correctional<br />
facilities, institutions, cruise lines, rail<br />
and airline caterers.”<br />
- staff<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 11
A Matter of Ethics,<br />
Economy<br />
and Taste<br />
Innovative approaches to animal<br />
welfare being developed by AAFC.<br />
Photos: Agriculture and Agri-Food Canada<br />
By Dominique Bastien<br />
As a consumer, are you concerned about how animals<br />
are treated before they become a tender and tasty<br />
cutlet on your plate? About whether animal husbandry<br />
methods affect the quality of the meat? About whether the<br />
quality of your food is affected by the transporting of animals<br />
and what happens in the hours before slaughter?<br />
If you answered yes to any of these questions, you are not<br />
alone. For years, these questions have motivated a large amount<br />
of research on the welfare of farm animals by a number of<br />
researchers at Agriculture and Agri-Food Canada(AAFC).<br />
Some of the results even suggest that improving animal welfare<br />
could be an effective economic avenue. Several innovative<br />
approaches to the treatment of farm animals have already<br />
been developed, and others are coming. Work on this is being<br />
done at the Dairy and Swine Research and Development<br />
Centre in Sherbrooke, Que., the Lethbridge Research Centre<br />
and the Lacombe Research Centre in Alberta, and the Pacific<br />
Agri-Food Research Centre in Agassiz, B.C.<br />
<strong>The</strong> Dairy and Swine Research and Development Centre<br />
in Sherbrooke is the only centre in Canada that manages a<br />
program on the welfare of swine from birth to slaughter, a<br />
program developed both to meet industry needs and in<br />
response to consumers’ emerging concerns.<br />
Work on swine welfare has been under way for a long time<br />
at AAFC. In the 1980s, Dr. David Fraser in Ottawa and Dr.<br />
Suzanne Robert in Sherbrooke studied swine behaviour<br />
and welfare. More recently, in 1999, Dr. Luigi Faucitano<br />
began working at the research and development centre in<br />
Sherbrooke; in 2005 he was joined by Dr. Nicolas Devillers<br />
and Dr. Stephanie Torrey.<br />
In 1999, Dr. Faucitano initiated the research program<br />
on preslaughter management, a program that studies how<br />
the animals are treated from the time they leave the farm<br />
to the time of slaughter. He has gone from having a single<br />
collaborator in 2003 to enjoying the collaboration of four<br />
abattoirs—two in Quebec and two in Manitoba—and five<br />
provincial federations of pork producers.<br />
This is fortunate, as the research shows beyond any doubt<br />
that swine muscle metabolism is directly affected by stress.<br />
Dr. Faucitano says that, if a hog is treated badly, even in the<br />
very last seconds before slaughter, the stress will permanently<br />
affect the quality of the meat. Treatment of the animal in<br />
the preslaughter period (fasting, transport to the abattoir,<br />
handling, etc.), if poor, can wipe out months of properly done<br />
fattening on the farm. How could we have known this without<br />
the researchers’ work? <strong>The</strong> participation of the swine sector<br />
12 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
points to improvement of slaughter<br />
conditions in the coming years.<br />
<strong>The</strong> quality of life of swine begins<br />
with the living conditions of the breeder<br />
sows and their piglets, a subject studied<br />
by Dr. Stephanie Torrey and Dr. Nicolas<br />
Devillers. Already, in Europe and the<br />
United States, the practice of confining<br />
gestating sows to stalls is gradually being<br />
eliminated, and the use of crates for<br />
lactating sows is being questioned.<br />
Dr. Devillers is studying the<br />
characteristics of alternative housing to<br />
improve the welfare of lactating sows.<br />
<strong>The</strong> new housing gives the animal more<br />
room in which to move and engage in<br />
natural behaviours. <strong>The</strong> swine industry<br />
has everything to gain by opting for<br />
better housing for sows, as this will result<br />
in healthier animals, that is, animals<br />
with fewer locomotive problems and<br />
fewer stereotypical behaviour problems,<br />
and they will pay less in veterinary fees,<br />
an important economic benefit not to<br />
be forgotten.<br />
Moreover, the research being done by<br />
Dr. Devillers tends to show that not using<br />
crates for lactating sows encourages<br />
maternal behaviour in the animals,<br />
a definite advantage for improving<br />
the welfare of the sows and their<br />
piglets. Study of alternative housing is<br />
a promising avenue for the quality of<br />
swine production.<br />
Through her studies on piglets, Dr.<br />
Stephanie Torrey is also contributing<br />
significantly to the improvement of hog<br />
farm conditions. Her research focuses on<br />
the welfare, health and viability of small<br />
…promoting production<br />
that is more respectful<br />
of the quality of life of<br />
livestock reflects growing<br />
public attention to ethical<br />
considerations.<br />
piglets. Over half of her work is research<br />
done on hog farms. For example, she<br />
is conducting various experiments to<br />
analyse in depth the effects of early<br />
weaning, the factors influencing the<br />
piglet’s ability to get enough food and<br />
the effects of painful procedures, such<br />
as docking and castration, on piglet<br />
behaviour. All these are elements that<br />
can have a marked effect on piglet<br />
development and growth.<br />
Many more examples could be cited to<br />
illustrate the contribution of researchers<br />
at the AAFC research centres to<br />
advancing knowledge and developing<br />
practices to improve the welfare of<br />
farm animals. Of course, promoting<br />
production that is more respectful of<br />
the quality of life of livestock reflects<br />
growing public attention to ethical<br />
considerations. In addition, however,<br />
with a view to helping the swine industry,<br />
AAFC researchers have demonstrated<br />
the links between animal welfare<br />
and greater productivity. Improved<br />
productivity will be possible when the<br />
industry works to decrease hog mortality<br />
during transport and to improve the<br />
health of the animals at the various<br />
stages in their life. Also, development<br />
of new preslaughter expertise makes<br />
possible the production of higherquality<br />
meat. Could we be discovering<br />
that better treatment of farm animals<br />
can improve people’s quality of life?<br />
Dominique Bastien works for Agriculture<br />
and Agri-Food Canada’s communications<br />
department. She wrote this article in<br />
collaboration with Dr. Luigi Faucitano, Dr.<br />
Nicolas Devillers and Dr. Stephanie Torrey<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 13
Which<br />
Preservative to Use?<br />
Two of the most common preservatives in use today are potassium sorbate<br />
and sodium benzoate – but which is the right one to use, and when?<br />
P<br />
eople have been attempting to<br />
preserve food for centuries to<br />
prolong the time that food could<br />
be stored. Today we not only preserve<br />
foods for later use, but also aim to preserve<br />
a food’s nutritional characteristics as well<br />
as its appearance. Chemical preservatives,<br />
which create environments where microbes<br />
cannot survive, are preferable to physical<br />
processes, like drying, since they tended to<br />
preserve the quality of the food as well as<br />
extending its “shelf life.”<br />
<strong>The</strong> earliest chemical preservatives<br />
used were sugar and salt. <strong>The</strong>se were<br />
used to preserve fruit and meat, creating<br />
an environment of high osmotic pressure<br />
hostile to most harmful microbes. However,<br />
sugar and salt had two problems; first, they<br />
were only marginally effective against<br />
molds, and second, they changed the taste<br />
of the foods they preserved.<br />
Modern chemical preservatives are<br />
capable of retarding or preventing the<br />
growth of microorganisms to prevent<br />
or slow the spoilage of food, while still<br />
maintaining its quality. Two of the most<br />
common examples in use today are<br />
potassium sorbate and sodium benzoate.<br />
But which is the right one to use, and<br />
when?<br />
In choosing a preservative, processors<br />
must take into consideration the product<br />
in question, the shelf life required, the<br />
ease of application of the preservative, the<br />
spoilage organism of concern and most<br />
importantly, the expected final pH of the<br />
product.<br />
Potassium sorbate<br />
Potassium sorbate is used in a variety of<br />
foods and can be used as a direct additive,<br />
a spray or dip bath, or as a coating on<br />
wrapping material, and inhibits yeasts,<br />
molds, and bacteria. It is effective against<br />
microbes at pH 6.5 or less (as the pH<br />
decreases the antimicrobial activity of this<br />
In choosing a preservative,<br />
processors must take into<br />
consideration the product<br />
in question…and most<br />
importantly, the expected<br />
final pH of the product.<br />
preservative increases). Normal usage<br />
levels are in the range of 0.05 - 0.1 per cent<br />
in products like cheeses, baked goods,<br />
spreads, margarine, dried fruits, jams and<br />
jellies.<br />
Since sorbates have no effect on<br />
organisms that produce lactic acid, they<br />
can be used to prevent the yeast and<br />
mold spoilage of foods like cultured dairy<br />
products and pickles.<br />
Sodium benzoate<br />
Sodium benzoate is one of the oldest<br />
of the modern chemical preservatives. It<br />
is most effective in the pH range of 2.5 to<br />
4.0. Benzoates have activity against yeasts,<br />
molds and bacteria. However, they are not<br />
recommended solely for bacterial control<br />
because their activity is poor above pH 4,<br />
where bacteria are the greatest problem.<br />
<strong>The</strong>y are most commonly used in fruit<br />
juices, carbonated and non-carbonated<br />
beverages, jams and jellies at up to 0.1 per<br />
cent. Benzoate is also useful in margarine,<br />
potato salad, fresh fruit cocktail and<br />
pickles. Benzoates do not destroy yeasts or<br />
molds but instead retard further growth of<br />
the organisms already present.<br />
Chemical preservative selection is based<br />
upon the pH of the food first, then upon<br />
the application. Sorbates, benzoates and<br />
propionates are often used in combination<br />
with each other, or an organic acid, to<br />
improve efficacy.<br />
A version of this article previously appeared<br />
in <strong>The</strong> Main Ingredient, a bi-monthly newsletter<br />
from Malabar Super Spice Co. Malabar provides<br />
spices, ingredients, sausage casings, supplies and<br />
equipment to meat and poultry processors across<br />
Canada. For more information on phosphates,<br />
contact Malabar’s technical team at lab@<br />
malabarsuperspice.com.<br />
PRESERVATIVE<br />
COMMON<br />
FORM<br />
ANTIMICROBIAL<br />
ACTIVITY<br />
PH<br />
RANGE<br />
USAGE<br />
MAX<br />
FOOD APPLICATIONS<br />
Benzoates<br />
Sodium Benzoate &<br />
Benzoic Acid<br />
Yeast, mold & select<br />
bacteria<br />
2.5 – 4.0<br />
0.1%<br />
Beverages, sauces, jams, jellies, salad dressing, fresh salads,<br />
seasoning mixes, moist pet food, pickles, snack foods<br />
Sorbates<br />
Potassium Sorbate &<br />
Sorbic Acid<br />
Yeast, mold & select<br />
bacteria<br />
4.0 – 6.5<br />
0.05-0.1%<br />
Cakes, pastries, beverages, jams, jellies, dairy products,<br />
seasoning mixes, dry fruit, snack food, dry sausages, fresh salads<br />
Propionates<br />
Sodium & Calcium<br />
Mold<br />
5.0-6.5<br />
0.5%<br />
Higher pH food, yeast leavened baked goods, cake mixes,<br />
processed cheese, snack food, tortillas<br />
Sulfites<br />
Sulfur Dioxide, Sulfite salts<br />
Bacteria, yeast & mold<br />
Up to 4.0<br />
GMP<br />
Beverages, wines, shrimp, pickles, vegetable processing<br />
Nitrites<br />
Sodium nitrite<br />
Some bacteria<br />
Up to 6.0<br />
0.02%<br />
Cured meats and poultry<br />
Organic Acids<br />
Acetic, Lactic, Citric,<br />
GDL<br />
Yeast, bacteria<br />
< 5.0<br />
GMP<br />
Dairy products, yeast leavened bread, gravies, sauces,<br />
processed meat, jams, jellies, bakery and confections<br />
Salt<br />
Sodium & Potassium<br />
Chloride<br />
Bacteria<br />
All<br />
GMP<br />
Dairy, bakery, processed meat, poultry, seafood, salad<br />
dressings, sauces, gravies<br />
Bombal®<br />
Sodium Acetate &<br />
Sodium Diacetate<br />
Bacteria<br />
(including Listeria<br />
monocytogenes, E<br />
Coli, Staphylococcus<br />
aureus, Bacillus<br />
cereus) & mold<br />
All<br />
0.5%<br />
Cured and cooked meat & poultry<br />
14 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
Photos: Unitherm<br />
Agroin grows and harvest its own peppers, washes them,<br />
roasts them in a flame griller, peels off the blackened outer<br />
skin and immediately freezes and packages the product.<br />
Increasing Output Without<br />
Sacrificing Quality<br />
Mexican food processor quadruples output, increases yield and<br />
slashes energy costs with specially modified flame griller.<br />
By David Rizzo<br />
T<br />
here is a universal challenge that faces almost every<br />
small to medium-sized food processor throughout<br />
the world. That is: how to grow big and meet the<br />
increased demand that success brings, without sacrificing<br />
the original taste and quality that attracted the demand in<br />
the first place. But in the rush to expand, simply ordering<br />
a standard piece of equipment, like a high-speed roasting<br />
oven, and expecting it to duplicate a homemade process of<br />
making prepared food is unrealistic.<br />
Instead, today’s emerging food processors are becoming<br />
market leaders by looking for equipment manufacturers<br />
who are willing to customize high-volume equipment to<br />
meet the exact needs of the process, so that the original<br />
quality and taste can be preserved. In such manner, food<br />
processors can feel secure in the knowledge that existing<br />
and new customers will continue to purchase their product<br />
well into the future.<br />
As a bonus, processing equipment that is customized to<br />
meet a food producer’s unique processes can also improve<br />
yield, while also providing energy savings by reducing gas<br />
and electric costs, thus further improving the revenue stream<br />
and helping companies to grow.<br />
Specially manufactured equipment<br />
ensures success<br />
Most every small to medium-sized food processor dreams<br />
of getting discovered by a buyer from world supermarket<br />
leaders like Wal-Mart, Costco, Tesco, Gigante, Gruppo PAM<br />
or Caprabo. However, an invitation to supply product to<br />
these giants requires a huge increase in production volumes.<br />
Continued on Page 18<br />
16 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
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<strong>The</strong> fear is that the processor may not be able to maintain<br />
the same level of quality if new high-speed equipment is<br />
purchased. Yet keeping existing, low-volume equipment<br />
risks losing the contract with the large stores.<br />
“We have very limited production at our plant here in<br />
Mexico, but our clients were asking for more and more<br />
of our chili pepper products,” says Leonardo Randolph,<br />
production manager for Agroindustria de Aguascalientes<br />
S.A. de C.V.<br />
Founded in 2003, Agroin operates as a division of La<br />
Huerta, one the largest frozen produce exporters in Mexico<br />
and a supplier of frozen vegetables to Wal-Mart. Agroin<br />
processes the frozen poblano chili pepper line for La Huerta,<br />
but its output was limited by its hand-built griller.<br />
“We grow and harvest our own peppers, wash them, and<br />
then roast them,” explains Randolf. “Afterwards, we peel off<br />
the blackened outer skin and then immediately freeze and<br />
package the product in different presentations. But our old<br />
griller that roasts the peppers was a bottleneck in the whole<br />
process. We had enough demand to more than triple our<br />
output, but we realized that we would need three more of<br />
our old roasters to meet the throughput that our new freezer<br />
was capable of handling. We needed to process one metric<br />
ton per hour, but our existing griller could only roast 250<br />
kg. per hour.”<br />
Aside from insufficient capacity, the construction of the<br />
old griller invited inconsistencies in roasting, as the distance<br />
between the gas burners and the product handling equipment<br />
could vary, making it difficult to quickly and thoroughly peel<br />
off the unevenly-blackened skin. At the output end of the<br />
griller, some of peppers would fail to be separated from the<br />
springs that carried them, which required a person to pull<br />
out the stuck peppers by hand.<br />
While attending a trade show in Chicago, Randolph and<br />
La Hueta’s Ricardo Arteaga Barba was introduced to an<br />
equipment manufacturer who offered to work on a solution<br />
to their output problem.<br />
“Because our pepper-roasting process is unique, we were<br />
not sure that any standard griller could do the job correctly<br />
and preserve the special taste of our product,” recalls Randolf.<br />
“But Unitherm agreed to work with us, and they invited us to<br />
their test kitchen in Oklahoma to design a flame griller that<br />
would meet our specific needs.”<br />
Unitherm Food Systems, based in Bristow, Oklahoma, is<br />
recognized throughout the food processing industry for<br />
its unique heat transfer systems that maximize yields and<br />
reduce processing times. <strong>The</strong> company’s plant offers a fully<br />
equipped test kitchen and a 3-D modelling program so that<br />
every aspect of a new system can be reviewed and, if necessary,<br />
modified to ensure it meets the needs of the processor.<br />
“We flew straight from Chicago to their plant because we<br />
wanted to ensure we could get something that would fit our<br />
process exactly,” continues Randolf. “<strong>The</strong>y brought in the<br />
same type of green poblano chili peppers we use, roasted<br />
them in their griller, and made adjustments until they came<br />
out the way we wanted. We tasted them and they were really<br />
good. We could see that this was going to work for us and<br />
provide the production volumes we were seeking.”<br />
<strong>The</strong> flame grill system like the one selected by the<br />
principals at Agroin allows a wide range of customization<br />
with belt widths from 20-60 inches, 8-50 ribbon burners,<br />
18 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
adjustable bar markers with variable<br />
grilling patterns and belt speeds from 5-<br />
180 minutes.<br />
Through collaborative efforts, a final<br />
design was selected for a single flame<br />
griller that could meet Agroin’s goal<br />
of one metric ton of product per hour.<br />
Preservation, if not improvement, in<br />
product quality was achieved by the<br />
grilling system’s ability to roast each<br />
pepper on all sides, providing the soughtafter<br />
consistency.<br />
“Unitherm’s griller was so efficient,<br />
that we only needed one unit to do the<br />
job of three or four of our old griller,”<br />
says Randolph. “As such, we expect<br />
our energy consumption, to shrink<br />
tremendously. But the best part is that<br />
we expect the quality to improve because<br />
with the new equipment we can control<br />
the speed of the griller bed, the amount<br />
“…with the new<br />
equipment we can control<br />
the speed of the griller bed,<br />
the amount of burners that<br />
can be turned on, and the<br />
quantity of heat going out<br />
of the griller.”<br />
– Leonardo Randolph,<br />
Agroindustria de Aguascalientes<br />
of burners that can be turned on, and<br />
the quantity of heat going out of the<br />
griller.”<br />
An unexpected gain from this design<br />
comes in form of increased yield.<br />
“By weight, the product shrinks by<br />
about 20 to 25 per cent, and this is normal<br />
during the roasting process,” comments<br />
Randolph. “However, the new griller can<br />
limit that loss to 15 to 20 per cent.”<br />
With the advent of equipment<br />
manufacturers willing to modify their<br />
machines, food processors wishing to<br />
expand their market share can enjoy the<br />
best of both worlds: increased production<br />
volumes and the same great taste and<br />
quality that made them a success in the<br />
first place.<br />
David Rizzo writes technical articles for many<br />
industries, including the food industry for<br />
Power PR, based in Torrance, California.<br />
He has had published two trade books, 150<br />
technical articles, and 300 newspaper columns.<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 19
<strong>The</strong> Next Generation of Probiotics<br />
Antibiotic resistance, de-stressed animals among benefits for producers.<br />
A<br />
Winnipeg-based company is<br />
offering what it calls “the most<br />
advanced second generation<br />
probiotic in the world” – which is said to<br />
have all the benefits of a regular probiotic,<br />
but with added advantages not previously<br />
available.<br />
Galozyme is produced by Technavet<br />
and is available in several varieties, each<br />
designed for a specific animals – from<br />
household pets to cattle, swine and<br />
poultry. <strong>The</strong> company began selling<br />
the product in 2007 after receiving<br />
government approval.<br />
According to Health Canada, probiotics<br />
are “live microorganisms which, when<br />
administered in adequate amounts,<br />
confer a health benefit on the host.” For<br />
human consumption they are commonly<br />
found in some food products – including<br />
yogurts, juices and soy products.<br />
According to Technavet’s operations<br />
director, Saverio Violi, probiotics have<br />
been in use for over 25 years, but are used<br />
more widely in Europe than in North<br />
America, especially in terms of meat<br />
production.<br />
Violi said one of the problems with<br />
using what he calls “first generation”<br />
probiotics in the cattle or swine industry,<br />
is that when antibiotics are added to an<br />
animal’s system they kill the bacteria and<br />
intestinal flora in the animal’s stomach,<br />
making the probiotics useless.<br />
He added that Galozyme is antibiotic<br />
resistant – so producers using antibiotics<br />
on their animals for certain illnesses<br />
can still use the probiotic and get all the<br />
benefits.<br />
He noted the yeast in a second<br />
generation probiotic is protected by a<br />
tightened membrane that prevents the<br />
acidity of the stomach from destroying the<br />
living organism.<br />
“Our second generation probiotic has<br />
the capability tto by pass the gastric barrier<br />
and works in the intestinal tract, where<br />
all the breakdown actually happens,” he<br />
explained. “And for every carbohydrate<br />
molecule it comes into contact with<br />
it produces two lactic acid molecules,<br />
the fundamental building block for<br />
metabolizing.”<br />
Violi added that Galozyme has been<br />
certified by the Organic Producers<br />
Association of Manitoba.<br />
He noted the product can help<br />
producers by allowing animals to better<br />
utilize vitamins, calciums and minerals,<br />
which can lead to “better marbled meat.”<br />
Other benefits, he added, include the<br />
prevention of common illnesses in cattle,<br />
such as ketosis, acidosis and scouring. He<br />
noted that product also has a natural destressing<br />
ability, which can help animals<br />
eat better, gain more weight and have<br />
stronger immune systems.<br />
<strong>The</strong> product, Violi said has its origins<br />
in Italy, where it was developed (under<br />
the name Turval) for the ministry of<br />
defence for soldiers in Afghanistan. “<strong>The</strong><br />
government needed something for the<br />
soldiers to assimilate vitamins, calciums<br />
and minerals a lot quicker because they<br />
were running themselves down in their<br />
tours of duty and were coming back with<br />
IBS (irritable bowel syndrome).”<br />
For more information on Galozyme,<br />
visit technavet.com.<br />
-staff<br />
20 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
NAMP elects<br />
president and board<br />
T<br />
he board of directors for the North American<br />
<strong>Meat</strong> Processors Association (NAMP) elected Gary<br />
Malenke, president of Sioux-Preme Pork Products,<br />
as the organization’s next president.<br />
Malenke took office at the 2009 Outlook Conference<br />
at <strong>The</strong> Broadmoor in Colorado Springs. He succeeds<br />
Michael Strauss of Colorado Boxed Beef Co., who was<br />
elected chairman of the board.<br />
“I’m both humbled and honored to take the role as the<br />
68th president of NAMP,” Malenke said. “<strong>The</strong> willingness<br />
of members to share openly about business challenges is<br />
truly one of the strengths of the association.”<br />
Malenke began his career in the animal feed business,<br />
which led him to IBP and then Sioux-Preme Pork. During<br />
his 21 years at Sioux-Preme, he has held positions in<br />
procurement, operations and sales before becoming<br />
president in 2002.<br />
<strong>The</strong> NAMP executive committee for 2009<br />
– 2010 includes:<br />
• Chairman - Michael Strauss Colorado Boxed Beef Co.<br />
Auburndale, Florida<br />
• President - Gary Malenke Sioux-Preme Pork Products<br />
Sioux City, Iowa<br />
• Vice president - Bobby Hatoff Allen Brothers, Inc.<br />
Chicago, Illinois<br />
• Treasurer - Jeff Saval Deli Brands of America Baltimore,<br />
Maryland<br />
• Assistant treasurer - Mike Satzow North Country<br />
Smokehouse Claremont, New Hampshire<br />
• Secretary - Phil Kimball CAE NAMP executive director,<br />
Washington, DC<br />
<strong>The</strong> NAMP membership also elected 13 members to the<br />
board of directors.<br />
Elected for terms expiring in 2010:<br />
• Peter Bozzo, Chicago <strong>Meat</strong> Authority Chicago, Illinois<br />
• Tim Vlcek, Vlcek’s Fine <strong>Meat</strong>s, Inc. Chicago, Illinois<br />
Elected for three-year terms expiring<br />
in 2012:<br />
• Chris Appert, Apperts, Inc. St. Cloud, Minnesota<br />
• Michael Bernstein, Maid Rite Steaks Dunmore,<br />
Pennsylvania<br />
• John Bloch Michael’s Finer <strong>Meat</strong>s Columbus, Ohio<br />
• Steve Falcigno, Statewide <strong>Meat</strong>s & Poultry New Haven,<br />
Connecticut<br />
• Lee Freidheim, Cougle Commission Chicago, Illinois<br />
• Beau Heeps, K. Heeps, Inc. Allentown, Pennsylvania<br />
• Joe Maas, JTM Provisions Harrison, Ohio<br />
• Ross Shuket, Old World Provisions Albany, New York<br />
• Andrew Sussman, Plymouth Beef Co. Bronx, New<br />
York<br />
• Kevin Tulley, Sysco Specialty <strong>Meat</strong> Co Houston, Texas<br />
• Chris Mason, (associate) Wolf-Tec Kingston, New York<br />
Attention: Butchers with blunt knives – is this guy crazy?<br />
“I Want To Send You A Free Pro<br />
Electric Knife Sharpener Built<br />
For Butchers Just Like You”<br />
Just to prove it can produce razor sharp knives in<br />
seconds...save you money and time...and create<br />
a safer working environment. But only to trial for<br />
30 days as part of this promotional test - and the<br />
offer is strictly limited to the first 15 readers of<br />
Canadian <strong>Meat</strong> Business who respond<br />
My name is Chris Weidmark and I want to send you<br />
a free Butcher’s Knife Sharpener which thousands<br />
of butchers all over the United Kingdom, Australia,<br />
Germany and other parts of the world swear by.<br />
Why do they love it? Simple...Sharp knives always<br />
ready when they need them...fast + easy...for pennies<br />
a knife!<br />
As a butcher you are well aware that a sharp knife is<br />
much safer than a blunt one. It is 3x’s less likely to slip<br />
off the meat towards your skilled and valuable hands.<br />
A sharp knife is an efficient knife making your prep<br />
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Why Am I Making Such A Generous Offer?<br />
It’s really quite simple. I know just how effective these<br />
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and I figure the best way of proving this to you is to<br />
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So get ready to say goodbye to the monthly fees (&<br />
yearly contracts) charged by your knife rental company<br />
(who’s soft blades go blunt very quickly). And forget<br />
about those expensive grinding machines. Because<br />
with a little practice everybody in the shop will be able<br />
to obtain a great working edge in less than 30 seconds<br />
with the World’s #1 Butcher’s Knife Sharpener 280 by Nirey.<br />
Remember Sharp = Safe, efficient and 30% less force.<br />
<strong>The</strong> Way It Works Is Extraordinary!<br />
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with a high quality aluminium oxide abrasive belt.<br />
<strong>The</strong>se rotate at an impressive 2500 rpm and with high<br />
torque. <strong>The</strong> left wheel sharpens the left side of the<br />
knife blade and the right wheel, the right side. During<br />
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the left and right slots by the centre guide making it so<br />
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And the best part of all is you can try out the Butcher’s<br />
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missing out on this special meat business offer.<br />
<strong>The</strong> only upfront cost is a $39.95 shipping and handling<br />
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Don’t delay, Call me today at 613-786-1000<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 21
| Assembly Line |<br />
Assembly Line is an opportunity for companies to feature new products for the meat<br />
producing, processing, packaging and distribution industry. To include information about your<br />
new product e-mail alan@meatbusiness.ca.<br />
Vemag’s Speedy Natural Casing Linker<br />
Sausage processors will be especially interested in the new<br />
high-speed Vemag LPG208 Length Portioning Machine with<br />
Twin Rotating Linking Horns from Reiser. <strong>The</strong> company says<br />
the machine is the fastest natural casing linker in the industry.<br />
<strong>The</strong> LPG208 allows processors to increase sausage production<br />
by 30 to 50 per cent without adding labor. <strong>The</strong> LPG208 features<br />
two rotating linking horns to significantly reduce casing change<br />
times and dramatically increase production. <strong>The</strong> automatic<br />
two-horn system eliminates the downtime found in the startand-stop<br />
casing loading process of single-horn machines. As<br />
the casing on the first horn is stuffed and linked, the operator<br />
simultaneously loads a second casing onto the second horn. It’s<br />
the most efficient use of the operator’s time.<br />
reiser.com<br />
Proprietary Metal Treatment Trims <strong>The</strong> Fat<br />
From Your Blade Costs<br />
American Cutting Edge’s proprietary Sub-Zero process<br />
increases blade life by up to 50 per cent and prevents premature<br />
edge wear, assuring users of a clean, effective cut every time.<br />
<strong>The</strong> cryogenic metal treatment, developed through years of<br />
research and experimentation and tested by partner firms and<br />
independent laboratories, ice-hardens and tempers premiumgrade<br />
400 stainless steel to create a G5 skinner blade that delivers<br />
exceptional durability and blade life without increasing costs.<br />
Additionally, ACE continues to offer skinner blades of<br />
high carbon steel and stainless steel for end users who prefer<br />
traditionally produced products. American Cutting Edge’s<br />
goal is to always be the one blade supplier with the best cutting<br />
solution for all meat skinning end users, while providing Grade<br />
A customer service.<br />
American Cutting Edge is a division of CB Manufacturing<br />
& Sales Co., Inc., a manufacturer and distributor of industrial<br />
knives and blades since 1965.<br />
americancuttingedge.com<br />
Neogen offers economical pathogen testing<br />
Neogen’s GeneQuence assays for salmonella, listeria, and<br />
listeria monocytogenes combine DNA hybridization technology<br />
with the ability to process a few samples, or up to 372 samples<br />
at once.<br />
<strong>The</strong> company’s Reveal line of lateral flow microbial tests for E. coli<br />
O157:H7, salmonella and listeria allows users to quickly and accurately<br />
screen samples for these pathogens in as little as eight hours.<br />
neogen.com<br />
Z Tags Partners with Canada’s Remedy<br />
Animal Health Products<br />
Phoenix, Arizona-based Z Tags North America, L.P., a<br />
world-wide leader in livestock identification products, recently<br />
announced an exclusive distribution partnership with Canada’s<br />
Remedy Animal Health Products LTD.<br />
Remedy Animal Health will carry the full line of Z Tags animal<br />
identification products and accessories.<br />
Z Tags’ one-piece ear tag design with its patented, self-piercing<br />
tip, pivoting applicator pin, and the darkest laser marking in the<br />
industry, has quickly become a world-wide leader in livestock<br />
identification by being the most durable ear tag available.<br />
ztags.com<br />
Avery Dennison Steam Valve Protects<br />
Packaged Foods, Vents During Cooking<br />
Manufacturers and packagers of<br />
home-heated foods can now provide<br />
hermetically-sealed protection against<br />
contaminants and more accurately<br />
regulate the in-home cooking process<br />
with a unique new steam valve system<br />
from Strongville, Ohio-based Avery<br />
Dennison Industrial and Automotive<br />
Products Division.<br />
<strong>The</strong> steam valve system uses a<br />
proprietary design that provides a hermetic seal when applied<br />
over a pre-cut hole in flexible packaging or lidding film. During<br />
the cooking process, the valve opens at a predetermined<br />
temperature and allows steam to escape by exposing the<br />
structure’s slitted or perforated baffle layer. <strong>The</strong> system can be<br />
used in both microwave and oven applications.<br />
According to Nick Greco, business development manager,<br />
the steam valve’s hermetic seal guards food products from<br />
contaminants more effectively than conventional steam-escape<br />
methods that employ unguarded perforations.<br />
Steam valves are completely clear, have excellent contact clarity<br />
and can be printed with text, graphics and logos in one colour.<br />
Users can print and apply the valves or source finished<br />
packaging/packaging film with plain or printed steam valves preapplied.<br />
Avery Dennison offers label applicators, printers and<br />
engineering assistance necessary to integrate the machinery into<br />
the existing packaging lines of both end users and packaging<br />
suppliers.<br />
averydennison.com<br />
Hyster Spotlights Lift Truck Cold Storage<br />
Capabilities<br />
Hyster Company, a leading lift truck designer and<br />
manufacturer in North America, now offers a brochure showcasing<br />
the cold storage features and capabilities of their wide range of<br />
lift trucks.<br />
<strong>The</strong> brochure highlights features such as enclosed traction/<br />
hoist control, thermostatically controlled heaters on applicable<br />
switches, sealed control handle switches, premium performance<br />
anti-wear hydraulic oil and dielectric grease at wire harness<br />
connections that allow Hyster lift trucks to operate in a wide<br />
22 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
ange of temperatures.<br />
<strong>The</strong> company offers three environmental packages, including<br />
a Subzero Freezer Package is available with an optional heated<br />
floor for superior operator comfort and productivity.<br />
<strong>The</strong> brochure also highlights the industry-first extreme<br />
corrosion/wash down package, developed for highly corrosive,<br />
high moisture environments such as food processing, pickling,<br />
tanneries, salt and brine and chemical industries. This innovative<br />
package includes a completely galvanized frame, lift linkage and<br />
battery well and fork weldment, which eliminate rusting and<br />
repainting to give the trucks ultimate durability and longevity.<br />
hyster.com<br />
Lemark/Primera to Enable In-House Label Printing<br />
Lexmark International, Inc. has<br />
expanded its collaboration with<br />
specialty printer manufacturer<br />
Primera Technology, Inc., to include<br />
its award-winning color laser print<br />
engines and consumables, making<br />
in-house, high-volume label printing<br />
affordable.<br />
<strong>The</strong> CX1200 is intended for use by<br />
label houses, print shops and other<br />
print service providers as well as manufacturers of all types. It<br />
prints full-color labels in a convenient roll-to-roll configuration<br />
and enables businesses to print labels on demand. With an<br />
estimated price of $18,995 (U.S.), the CX1200 prints at 16.25<br />
feet per minute, with up to 1,250 feet printed per roll.<br />
lexmark.com<br />
Ashworth Offers New Specially Formulated<br />
Spiral Lubricants for Food Processing<br />
Ashworth Factory Service<br />
Corp. introduces SPIRALUBE,<br />
a complete line of specially<br />
formulated lubricants to reduce<br />
maintenance and increase the<br />
operating life of spiral freezers,<br />
coolers and proofers. <strong>The</strong> line<br />
includes Food-Grade Penetrating<br />
Oil, Food-Grade Belt Oil, Food-<br />
Grade Bearing Grease and Gear<br />
Oil. Each product is labeled to clearly identify the defined<br />
application and when used at the recommended intervals,<br />
spiral performance can be optimized and the operating life<br />
increased.<br />
Ashworth Factory Service offers a full range of engineering<br />
services, including system refurbishment, trouble-shooting<br />
and belt installation. On-call 24/7/365, Ashworth Factory<br />
Service Experts provide food processing and material<br />
handling companies peace of mind with decades of<br />
experience, quality workmanship, and comprehensive<br />
conveyor belt support.<br />
ashworth.com<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 23
| Industr y Roundup |<br />
Photo: AAFC<br />
Government’s Plan for Hog <strong>Industry</strong><br />
Restructuring<br />
On Aug. 15 the federal government<br />
announced a plan to assist Canada’s<br />
struggling pork producers, which<br />
included a $75 million buyout for<br />
those trying to leave the industry.<br />
“We know Canadian hog producers<br />
can become profitable again, but<br />
we have to face tough realities to<br />
Ag Minister Greg Ritz make our pork industry lean and<br />
competitive,” Agriculture Minister<br />
Gerry Ritz said in a release. “Some operations simply aren’t<br />
viable any more and we are going to help them transition out of<br />
the industry and reduce production.”<br />
Other initiatives announced as part of the strategic plan<br />
include:<br />
• An International Pork Marketing Fund of $17 million for<br />
market research, promotion and access initiatives to find<br />
new customers for Canadian pork products.<br />
• Long-term loans with government-backed credit that<br />
financial institutions can offer to allow viable hog operations<br />
to restructure their businesses.<br />
“<strong>The</strong>se new initiatives respect Canada’s commitments made<br />
under international trade agreements and ensure Canadian pork<br />
producers will continue to have access to market opportunities<br />
around the world,” Ritz added.<br />
<strong>The</strong> Canadian Pork Council (CPC) and Canadian Federation<br />
of Agriculture (CFA) were consultants on the development of<br />
the plan.<br />
According to CPC chair Jurgen Preugschas, the world<br />
pandemic caused by the H1N1 virus – which was unfortunately<br />
referred to as “swine flu” – was the latest blow to the industry,<br />
which was already dealing with high feed costs, high exchange<br />
rates and U.S. mandatory country of origin labelling.<br />
“As the transition plan is implemented, a leaner, greener and<br />
more innovative industry will emerge – one that is prepared to<br />
capitalize on both domestic and international opportunities,” he<br />
stated in a release.<br />
CFA president Laurent Pellerin said the program is good news<br />
for producers, but warned that the dire situation facing the pork<br />
industry is a long way from being resolved.<br />
“Canada can not afford to risk losing this vital industry,”<br />
Pellerin said in a release. “While these programs will go a long<br />
way in providing much need immediate assistance for many<br />
struggling hog producers, we need to keep in mind that the pork<br />
industry is unfortunately not out of the woods yet. We encourage<br />
the government to ensure the application and administration<br />
details are available to producers as quickly as possible.”<br />
CFA noted that recent data from Statistics Canada indicates that<br />
exports of live animals in June 2009 was 34.1 per cent lower than<br />
June 2008. Live animal export was $402 million lower between<br />
January and June 2009 compared to same period last year.<br />
Weatherill Report Makes 57 Recommendations<br />
According to Maple Leaf Foods president and CEO, Sheila<br />
Weatherill’s report on last year’s listeriosis outbreak was hard on<br />
Maple Leaf, “but it ought to be.”<br />
<strong>The</strong> report, released July 21 – six months after Prime Minister<br />
Stephen Harper announced Weatherill, a former Edmonton<br />
health authority president, would lead an investigation – made<br />
57 recommendations to improve food safety in Canada.<br />
Among the report’s key findings:<br />
• Maple Leaf Bartor Road plant was aware that it had<br />
occurrences of listeria in the plant in 2007 and 2008, and<br />
tried to correct the problem with sanitation procedures<br />
standard in the industry. <strong>The</strong> plant’s management thought<br />
listeria was under control.<br />
• Maple Leaf did not conduct the trend analysis required under<br />
its listeria control policy. <strong>The</strong> recurring positive results were<br />
not known nor were the positive results verified to determine<br />
the presence/absence of listeria monocytogenes. At the<br />
same time, the company was producing larger packages of<br />
deli-meat products for sale to institutions, including hospitals<br />
and long-term care homes. <strong>The</strong>y had created a recipe that<br />
used less sodium, which was attractive to the institutional<br />
market as many of its clients benefited from reduced-sodium<br />
diets. This combination of circumstances exposed vulnerable<br />
populations to risk.<br />
• Maple Leaf staff notified their superiors of the repeated<br />
presence of listeria beyond the Bartor Road plant into the<br />
head office. However, this information did not reach the<br />
office of the CEO because it was thought that the plant’s<br />
interventions had controlled the problem.<br />
• Employees in the Bartor Road plant were not required to,<br />
nor did they volunteer, information concerning the repeated<br />
occurrences of listeria in the plant to the CFIA Inspectors.<br />
“We thought we had a good food safety program last August,<br />
but our efforts failed with tragic consequences,” McCain said<br />
at a press conference. “Since then we have transformed every<br />
aspect of our food safety program. We cannot and will not forget<br />
the lessons of last August and that means imposing the highest<br />
standard of food safety in every product we make.”<br />
McCain noted that Maple Leaf has “for the most part”<br />
recovered its business since the outbreak.<br />
<strong>The</strong> report called last year’s crisis – which led to the deaths<br />
of 22 people – the worst listeriosis in Canada’s history. It notes<br />
that since 2005 the number of listeriosis outbreak cases reported<br />
annually in Canada has doubled.<br />
Approximately 40 per cent of those who became ill during the<br />
2008 listeriosis outbreak died of the disease, the report said. <strong>The</strong><br />
average age of people who had listeriosis listed as the underlying<br />
or contributing cause of death was 76. Almost 80 per cent of<br />
those who developed listeriosis lived in a long-term care home or<br />
were admitted to a hospital that had served contaminated delimeats<br />
from large packages produced specifically for institutions.<br />
Other key findings included:<br />
• <strong>The</strong> Compliance Verification System (CVS), is regarded<br />
as a sound system and has broad support, but needs<br />
critical improvements related to its design, planning, and<br />
implementation.<br />
• <strong>The</strong> CFIA inspectors had no obligation to request or examine<br />
the company’s listeria testing results under their CVS tasks.<br />
• In the lead-up to the outbreak the number, capacity and<br />
training of inspectors assigned to Maple Leaf Foods Bartor<br />
Road plant appear to have been stressed due to their<br />
responsibilities at other plants.<br />
• <strong>The</strong>re is a need for increased coordination and improved<br />
communication about food processing equipment among<br />
the manufacturer, the food processor, and the CFIA<br />
regarding design specifications and the validation of<br />
sanitation procedures.<br />
• <strong>The</strong> Public Health Agency of Canada did not consider it had<br />
the federal leadership role, therefore there was a delay in<br />
24 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
| Industr y Roundup |<br />
identifying the outbreak as a public health emergency.<br />
• Health Canada’s Health Risk Assessment team was not<br />
operating on a 24/7 basis during the summer of 2008, leaving<br />
gaps in coverage during the response to the emergency.<br />
Shaw Reappointed to FCC Board<br />
Federal Agriculture Minister Gerry Ritz recently announced<br />
the reappointment of Gill O. Shaw as chair of the Board of<br />
Directors of Farm Credit Canada (FCC).<br />
“Mr. Shaw has been doing an excellent job as chair of FCC’s<br />
Board of Directors since 2006, and I am pleased he has agreed<br />
to stay on for another three-year term,” Ritz said in a release. “We<br />
look forward to seeing FCC continue helping Canadian farmers<br />
manage these tough times.”<br />
Since 1959, FCC has grown to be Canada’s largest provider<br />
of business and financial services to farms and agri-businesses.<br />
Through specialized and personalized business and financial<br />
solutions delivered out of 100 offices throughout mostly rural<br />
Canada, FCC works to meet the changing needs of the sector<br />
and to ensure its prosperity. This is the sixth consecutive year<br />
FCC has been recognized on the Globe and Mail’s list of 50 Best<br />
Employers in Canada.<br />
FCC reports to Canada’s parliament through the Minister of<br />
Agriculture and Agri-Food. Shaw’s appointment is effective Oct.<br />
30 for a term of three years.<br />
Gill O. Shaw has over 30 years of experience in agricultural and<br />
financial management, and is a specialist in large commercial<br />
credit administration. From 1991 to 2002, he served as chief<br />
executive officer of the Manitoba Agricultural Credit Corporation<br />
and, during that time, was a member of the executive committee<br />
of the Manitoba Department of Agriculture. From 1989 to 1991,<br />
he served as executive director of the Manitoba Farm Mediation<br />
Board. He lives in Brandon, Man.<br />
fcc-fac.ca<br />
New Name for SIAL International Food<br />
Tradeshow<br />
<strong>The</strong> Montréal based International food tradeshow, SIAL<br />
Montréal has a new name – SIAL Canada.<br />
“This new name confirms the Canadian positioning of the<br />
tradeshow and enhances its leadership in creating business<br />
opportunities for both agrifood industry suppliers and buyers”<br />
SIAL Canada COO Xavier Poncin said in a release.<br />
For its seventh edition, the event will be held at the Palais des<br />
congrès de Montréal convention center April 21 to 23, 2010. It<br />
will feature conferences, workshops and live demos bringing<br />
forward consumer insights and trends.<br />
SIAL Canada is an international professional food tradeshow,<br />
part of the SIAL network of four tradeshows on four continents,<br />
7,500 exhibitors from over 100 countries and 200,000 visitors<br />
from more than 200 countries.<br />
SIAL Canada is organized in association with SET Canada,<br />
the national equipment show for the food retail and<br />
foodservice sectors.<br />
sialcanada.com<br />
please visit us at: www.sperlingind.com<br />
“BOSS” equipment<br />
<strong>Industry</strong> providers to the food industry for over 100 years...<br />
• Focused on food safety with enhanced production reliability.<br />
• Specializing in engineering, fabrication, installations, Beef & Pork.<br />
• BOSS provides packers with reliable efficient equipment.<br />
Sperling<br />
Industries Ltd.<br />
51 Station St, (Box 100)<br />
Sperling, MB Canada R0G 2M0<br />
1-204-626-3401 or<br />
Fax 1-204-626-3252<br />
Also:<br />
Brandon, MB<br />
1-204-729-9190<br />
2420 Z Street, Omaha, NE 68107<br />
1-402-556-4070<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 25
Eliminating Back<br />
Breaking Work<br />
in the Food<br />
<strong>Industry</strong><br />
Preventing back injury pays off in added<br />
safety, capacity and productivity.<br />
By Del Williams<br />
Photos: Air Olift<br />
Whenever commercial, manufacturer-sized loads are<br />
lifted, moved or manipulated by operators in the<br />
food industry, there’s risk of injury; and the larger or<br />
more repetitive the load, the greater the risk.<br />
Some proactive food companies, such as Great Lakes Cheese,<br />
an award-winning manufacturer based in the U.S. that handles<br />
250-lbs. and nearly 700-lbs. blocks of cheese, have heeded the call<br />
to prevent operator back injury while benefitting from higher,<br />
more streamlined production with the strategic use of lift devices<br />
and attachments.<br />
Operator injury risk<br />
“According to the Bureau of Labor Statistics (BLS), more<br />
than one million workers suffer back injuries each year, and<br />
back injuries account for one of every five workplace injuries or<br />
illnesses,” states an OSHA fact sheet. “Moreover, though lifting,<br />
placing, carrying, holding and lowering are involved in manual<br />
materials handling (the principal cause of compensable work<br />
injuries) the BLS survey shows that four out of five of these injuries<br />
were to the lower back and that three out of four occurred while<br />
the employee was lifting.”<br />
In 2006, injuries related to lifting, pushing, pulling, holding,<br />
carrying or throwing cost U.S. businesses $12.4 billion in direct<br />
costs, according to the 2008 Liberty Mutual Workplace Safety<br />
Index. In fact, it can cost an individual employer up to $65,000<br />
(U.S.) for a single back injury.<br />
To prevent lifting injuries, OSHA offers suggestions including<br />
the “installation of mechanical aids such as pneumatic lifts,<br />
conveyors, and/or automated materials handling equipment.”<br />
Operator and food safety<br />
Award-winning cheese manufacturer Great Lakes Cheese is a<br />
recipient of a “2005 Audit Platinum Award” for food safety at its<br />
Hiram, Ohio headquarters facility. As a top 10 North American<br />
food plant, the Hiram site earned a near-perfect 99.1 per cent<br />
in Silliker GMP (Good Manufacturing Practices) Food Safety<br />
audits.<br />
“When Great Lakes Cheese opened the Hiram plant about<br />
a decade ago, the goal was to make its safety, capacity, and<br />
productivity state-of-the-art,” says Dave Ortego, the plant’s<br />
maintenance manager.<br />
Previously, manually lifting, flipping, and shaking about<br />
250-lbs. blocks of cheese from wooden boxes required pairs of<br />
workers, who had to be rotated frequently because the work was<br />
26 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
so strenuous.<br />
Another labour-intensive process<br />
required lifting and positioning nearly<br />
700-lbs. blocks of cheese with a chain<br />
hoist, readying the cheese for cutting<br />
equipment.<br />
“<strong>The</strong> old processes were too slow,<br />
strenuous and imprecise,” says Ortego. “As<br />
we grew, we sought more efficient processes<br />
to meet demand, with less physical ‘wear<br />
and tear’ on employees. But there were no<br />
off-the-shelf products we could buy for the<br />
job.”<br />
For a base unit, Ortego turned to a<br />
pneumatic, lift assistance device made by<br />
AirOlift Lifting Systems, an Akron, Ohiobased<br />
builder of ergonomic clamping and<br />
vacuum lifting systems.<br />
To customize the lift equipment to<br />
his operation, Ortego collaborated<br />
with AirOlift’s engineering staff. <strong>The</strong><br />
collaboration produced two custom<br />
attachments: a cheese block rotator and a<br />
cheese/box extractor attachment.<br />
Ortego also collaborated with Handling<br />
Concepts, Inc., an Akron-based expert<br />
in ergonomic and material handling<br />
equipment, on integrating a track crane<br />
system and other material handling<br />
equipment with the lift devices.<br />
“Since the lift devices are integrated with<br />
an enclosed track crane system, operators<br />
can pull them where needed by just a<br />
finger,” adds Ortego. “<strong>The</strong>re’s no strain;<br />
the operator can work an entire shift<br />
without rotation. One operator essentially<br />
does the work of three previously, so we’ve<br />
expanded capacity tremendously without<br />
adding staff.”<br />
Because the lift systems are all pneumatic,<br />
operated by a single shop airline, they<br />
eliminate electric hazards such as shock<br />
from frayed wires. <strong>The</strong>y also avoid running<br />
costly, unsanitary electrical connections<br />
in the working area. With fewer moving<br />
parts, there’s nothing to grease, which aids<br />
cleanliness and minimizes maintenance.<br />
Since the lift devices are constructed of<br />
stainless steel and FDA-compliant Delrin<br />
– a high-performance acetal resin made<br />
by DuPont, they can be can be used in<br />
production processes and food-grade wash<br />
down, clean-room environments. <strong>The</strong><br />
resin bridges the gap between metals and<br />
plastics with strength, toughness, abrasion<br />
resistance, low wear and low friction.<br />
“<strong>The</strong> lift systems’ all pneumatic, stainless<br />
steel, Delrin construction is a big plus,”<br />
says Ortego. “This allows us to conduct<br />
daily washdowns, which helps keep our<br />
food safety and quality assurance standards<br />
among the highest in the industry.”<br />
Ortego appreciates safety features built<br />
into the equipment. For instance, if there’s<br />
ever catastrophic air loss, the devices hold<br />
“One operator essentially<br />
does the work of three<br />
previously, so we’ve<br />
expanded capacity<br />
tremendously without<br />
adding staff.”<br />
– Dave Ortego, Great Lakes Cheese<br />
their loads in place, protecting operators<br />
from dropped loads and eliminating<br />
product damage.<br />
“<strong>The</strong> lift devices are extremely well<br />
designed and made,” concludes Ortego.<br />
“Not only are they protecting our operators<br />
from injury, but also they’re designed for<br />
direct food contact and made to last. After<br />
hundreds of lifts per shift each day, the<br />
originals are still working fine a decade<br />
later, and we expect them to last at least a<br />
decade more.”<br />
AirOlift Lifting Systems custom<br />
manufactures product clamping,<br />
vacuum lifting and manipulating systems,<br />
ergonomically designed to meet or<br />
exceed OSHA and NIOSH mandates or<br />
recommendations. Its lifting solutions<br />
enhance safety and production in a variety<br />
of industries on items ranging from<br />
bags, boxes, parts, panels, rolls, doors<br />
and windows, to clean-room/wash-down<br />
applications.<br />
As an expert in ergonomic and material<br />
handling equipment, Handling Concepts<br />
can provide and integrate the entire<br />
range of ergonomic, material handling<br />
equipment from lift/tilt tables and hoists/<br />
cranes, to conveyors and mezzanine lifts,<br />
to manipulators and ergonomic lifters, to<br />
drum, roll, bin and tote handling.<br />
For more information, visit airolift.com<br />
and handlingconcepts.com.<br />
Del Williams writes technical articles for Power<br />
PR, based in Torrance, California.<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 27
| Cross Countr y News |<br />
British Columbia<br />
Ranchers Receive National Recognition for<br />
Environmental Commitment<br />
<strong>The</strong> Madley family, of the Canyon Ranch in Alexis Creek, B.C.,<br />
received the Environmental Stewardship Award (TESA) from<br />
the Canadian Cattlemen’s Association (CCA) in recognition<br />
for their outstanding commitment to water quality, habitat<br />
restoration, riparian, grass and nutrient management.<br />
Announced at the CCA National Convention, Brooke and<br />
Bev Madley accepted the award on the behalf of the five<br />
generations that have worked, and continue to work at the<br />
Canyon Ranch. Today, the Madley family raises Hereford-<br />
Angus-cross cattle.<br />
Situated at the confluence of Alexis Creek and the<br />
Chilcotin River, the Canyon Ranch has undergone extensive<br />
environmental modifications. <strong>The</strong> Madleys created a buffer<br />
zone along the creek, placing barnyard holding pens at a<br />
substantial setback, plus installing extensive fencing and water<br />
troughs. To enable natural restoration of nutrients to the soil,<br />
the family also puts careful thought into rotating their herd<br />
over the winter.<br />
<strong>The</strong> Canyon Ranch also exemplifies excellent riparian<br />
management on Crown range. <strong>The</strong> Madleys partnered with<br />
key groups to implement some of these practices. To protect<br />
the Avon Creek on Crown range, they installed a water<br />
crossing with the help of the British Columbia (B.C.) Grazing<br />
Enhancement Fund.<br />
To minimize impact on wetlands, their livestock graze on the<br />
lower wetland range only in late August. <strong>The</strong>y also partnered<br />
with Ducks Unlimited Canada, which is undertaking an<br />
active stewardship project on the Madley’s Crown range. <strong>The</strong><br />
family also improved forage quality and increased livestock<br />
production, through extensive range riding to rotate cattle<br />
among the Crown range-management units.<br />
Alberta<br />
Details for <strong>Meat</strong> Strategy Online<br />
<strong>The</strong> Alberta agriculture department launched a new website<br />
in August that details its Alberta Livestock and <strong>Meat</strong> Strategy<br />
(ALMS).<br />
Originally released in June 2008, the implementation plan<br />
outlines key initiatives, milestones and timelines to be achieved<br />
under ALMS for maximum industry impact. ALMS is designed<br />
to create a more profitable and competitive future for all<br />
members of the livestock and meat industry.<br />
“This new implementation plan serves as a framework,<br />
which will remain flexible in order to solve challenges and<br />
take advantage of opportunities as they emerge,” George<br />
Groeneveld, Minister of Agriculture and Rural Development,<br />
said in a release. “Together, industry and government have<br />
already accomplished much under ALMS. We must continue<br />
to work together under this framework to meet our common<br />
goal of a profitable and competitive future.”<br />
<strong>The</strong> revisions better reflect the collaborative nature of ALMS<br />
and adjust some milestone target dates based on industry<br />
feedback. ALMS is a partnership among Alberta Agriculture<br />
and Rural Development (ARD), Agriculture Financial Services<br />
Cooperation (AFSC), Alberta Livestock and <strong>Meat</strong> Agency<br />
(ALMA) and industry. All partners played a role in developing<br />
the strategy and implementation plan. <strong>The</strong>ir roles continue<br />
to be vital in implementing initiatives and achieving the goals<br />
identified in the strategy.<br />
One of the initiatives identified in ALMS, the Cattle Price<br />
Insurance Program (CPIP), has already been developed by<br />
AFSC and will be available to producers in late summer. This<br />
program is the first of its kind in Canada.<br />
For more information, visit alms.alberta.ca.<br />
Ontario<br />
Project to Boost Sustainable Performance of<br />
Food Processing Sector<br />
Ontario-based food and beverage manufacturers have a<br />
new resource to support them in their efforts to improve longterm<br />
sustainability, with a project announced today by Food &<br />
Consumer Products of Canada (FCPC), Guelph Food Technology<br />
Centre (GFTC) and the Ontario Centre for Environmental<br />
Technology Advancement (OCETA).<br />
<strong>The</strong> project, entitled “Raising the Bar for Sustainability<br />
Performance in Ontario’s Food and Beverage Processing Sector”<br />
will produce a sustainability framework and tools to assist the food<br />
and beverage processing sector, in particular small and mediumsized<br />
(SME) companies, with integrating environmentally<br />
sustainable business practices.<br />
28 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
<strong>The</strong> project will be implemented in several phases over three years:<br />
• Phase 1 will benchmark the superior sustainable performance<br />
of leading global companies in the food and beverage sector<br />
and develop a comprehensive and customized “how to”<br />
framework to guide SME food and beverage processors<br />
with integrating sustainability aspects into their business<br />
operations.<br />
• Phase 2 will involve the actual pilot testing of the framework<br />
and tools developed in Phase 1, with SME food and beverage<br />
companies in Ontario.<br />
• Phase 3 will transfer the pilot program platform across the<br />
entire food and beverage sector in Ontario.<br />
<strong>The</strong> core funding for Phase 1 of this project is supported in<br />
part through the Food and Beverage <strong>Industry</strong> Innovation Fund<br />
(FBIIF) by Agriculture and Agri-Food Canada's Advancing<br />
Canadian Agriculture and Agri-Food Program and the Ontario<br />
Ministry of Agriculture, Food and Rural Affairs through the<br />
Alliance of Ontario Food Processors. <strong>The</strong> Agricultural Adaptation<br />
Council administers the FBIIF. <strong>The</strong> fund has been established to<br />
encourage investment into new, innovative processes, products,<br />
and skills development. Other organizations providing funding<br />
support and resources for the project include the Ontario Power<br />
Authority (OPA) through the Conservation Fund and the City<br />
of Toronto, Economic Development, Culture and Tourism<br />
Department.<br />
<strong>The</strong> project will result in the development of a first-ever<br />
sustainability framework and customized tools targeted to<br />
Ontario’s small and medium-sized food and beverage companies.<br />
Major products will include:<br />
• An understanding of the current state and capacity of<br />
Ontario’s small and medium-sized food and beverage<br />
processing companies in implementing environmentally<br />
sustainable business practices.<br />
• A sustainability performance self-assessment tool.<br />
• A list of superior sustainability performance benchmarks<br />
(based on performance of global industry leaders).<br />
• A sustainability implementation framework.<br />
• <strong>The</strong> development of a Food and Beverage <strong>Industry</strong><br />
Sustainability Leadership Program.<br />
New Brunswick<br />
Olymel-Westco Go Ahead With<br />
Slaughterhouse Plans<br />
Sunnymel – a new company formed by a partnership<br />
between Olymel L.P. and Groupe Westco Inc. – plans to<br />
construct a new slaughterhouse in Clair, in northern New<br />
Brunswick.<br />
<strong>The</strong> company announced the plans after several attempts<br />
to purchase another slaughterhouse in the area owned by<br />
Nadeau Maple Lodge.<br />
Westco’s poultry production was transferred to Olymel<br />
slaughterhouses in Quebec – which, according to media<br />
reports, led to the loss of 175 jobs at the Nadeau plant. Once<br />
construction of the slaughterhouse is completed, Westco<br />
production will again be slaughtered in New Brunswick,<br />
according to a press release issued by the partnership.<br />
Sunnymel signed a recognition agreement with the Local<br />
1288 of United Food and Commercial Workers for the union<br />
to be the sole wage bargaining agent for the coming poultry<br />
slaughtering, processing and distribution plant.<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 29
Faith<br />
Opportunities in the growing halal meat sector.<br />
By M. Eshan Sairally<br />
in the Market<br />
<strong>The</strong> Canadian meat market<br />
is a dynamic and exciting<br />
industry in which consumer<br />
preferences are changing allowing new<br />
opportunities to arise. What used to<br />
be a producer driven market has now<br />
changed to a market driven one. With<br />
the world becoming a global village,<br />
Canadians are increasingly exposed to<br />
different cultures, and are becoming<br />
more adventurous and open to trying<br />
new foods. Thanks to the growing<br />
diverse population of Canada, there<br />
are consumer food preferences, beliefs<br />
and lifestyles that present a growing<br />
opportunity in the meat industry.<br />
Demographics<br />
Since the Canadian census collects<br />
data on religious affiliation, a lot of<br />
official information is available in halal<br />
consumer demographics, market size<br />
and geography. For example, Canada’s<br />
Muslim (halal consumer) population<br />
is approaching one million, which<br />
is a significant defined market that<br />
is estimated to be $1 billion. Major<br />
concentrations of halal consumers are<br />
in metropolitan areas such as Toronto,<br />
Montreal, Vancouver, Ottawa, Calgary<br />
and Edmonton. <strong>The</strong> Toronto area is<br />
a major growth market, and will soon<br />
have approximately 10 per cent halal<br />
consumers.<br />
Statistics indicate that within the<br />
next two decades approximately 30 per<br />
cent of the world’s population will be<br />
halal consumers. Canadian halal meat<br />
products are fast gaining worldwide<br />
recognition as a benchmark for quality<br />
and lifestyle choice as they are accepted<br />
by Muslim and non-Muslim consumers.<br />
Conceptualizing halal<br />
products<br />
Canadian halal consumers come from<br />
various ethnic backgrounds, but they<br />
have common faith-based dietary needs<br />
and hence consumer needs are clearly<br />
defined and have been so for over 1,400<br />
years. Halal is an Arabic term denoting<br />
what is “permitted” according to Islamic<br />
faith. It is a religion-based diet stipulating<br />
purity of contents, inputs and process.<br />
Most animal products are permitted<br />
with the exclusion of pork and pork<br />
Halal consumers are<br />
involved food purchasers<br />
and need assurance that<br />
the foods they buy will fulfil<br />
their faith-based dietary<br />
requirements.<br />
derived products. For those permitted<br />
animal species (beef, chicken, mutton,<br />
goat, etc.) there is a prescribed animal<br />
handling and slaughtering protocol,<br />
which is based on concerns for animal<br />
welfare. <strong>The</strong> same requirements apply<br />
to food additives. Some additives may<br />
have pork derivatives or may be derived<br />
from permitted animal species that<br />
were not slaughtered according to halal<br />
protocol and are not permitted.<br />
Industrial implications<br />
A science based certification agency<br />
such as Halal Product Development<br />
Service (HPDS) has experience with the<br />
meat industry and can assist a company<br />
to either make an existing product halal<br />
compliant or to develop a new halal<br />
product. Companies may already have<br />
a halal production mindset but don’t<br />
realize it. Producing a halal product is<br />
essentially the same as producing an<br />
allergen free product. Once a halal<br />
product has been formulated and<br />
processed, various check point controls<br />
are required to ensure there is no comingling<br />
with non-halal products.<br />
<strong>The</strong> following three points should<br />
help allay concerns some mainstream<br />
Canadian companies may have:<br />
• A dedicated plant or line is not<br />
necessarily required to produce<br />
a halal product. With proper<br />
checkpoints, GMPs and HACCP type<br />
protocols in place, halal processing<br />
can be accommodated in an existing<br />
plant where other product types are<br />
processed.<br />
• Industrial halal food processing<br />
completely fits into the Canadian<br />
food regulatory framework. <strong>The</strong>re is<br />
nothing different about halal meat<br />
products or how they are processed<br />
other than the exclusion of certain<br />
ingredients as well as co-mingling<br />
control.<br />
• A halal certified meat product can<br />
be the same formulated one that<br />
the company is already producing<br />
for the general market, but now<br />
the product will be reaching the<br />
lucrative halal market as well.<br />
A certification agency such as HPDS,<br />
made up of food professionals, can assist<br />
companies entering the Canadian and<br />
worldwide halal market through the<br />
following means:<br />
• Formulation development (a key<br />
starting point)<br />
• Processing, production line changeover<br />
and scheduling<br />
• Equipment and line sanitation<br />
• QC, GMP and HACCP type<br />
protocols<br />
• Staff awareness and training<br />
• Regulatory compliance<br />
• Certification labelling<br />
• Logistics<br />
• Consumer and market information,<br />
including exporting opportunities<br />
Halal consumers are involved food<br />
purchasers and need assurance that the<br />
foods they buy will fulfil their faith-based<br />
dietary requirements. Certification<br />
labelling gives that assurance and<br />
provides industry with access to a<br />
growing halal market.<br />
M. Eshan Sairally is the president of the<br />
Halal Product Development Service (HPDS).<br />
For more information, contact him at<br />
ehsan@halalproductservices.com.<br />
30 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
Get your Business<br />
An economic turnaround is coming, but there will still be challenges for business owners.<br />
By David Filice<br />
Ready for the Upswing<br />
F<br />
or business owners the current economic climate has<br />
likely felt like riding a rollercoaster. For many in the<br />
food industry, the implications of a slowdown in Canada<br />
and the U.S. have been severe. When lenders were awash in<br />
surplus liquidity, struggling organizations often received lifelines<br />
that pulled them back from the brink of failure. But, in today’s<br />
economic environment, the refinancing and restructuring of<br />
companies has become more challenging as there is less available<br />
credit.<br />
While we may be seeing the light at the end of the tunnel, it’s<br />
likely that we will have to face a few more obstacles before we get<br />
to the end. <strong>The</strong> following are some practical steps you can take to<br />
help you land in a better position at the end of the ride.<br />
Analyze your cash flow<br />
Cash is the lifeblood of any business and matters more than<br />
earnings. To analyze your cash flow:<br />
• Focus on working capital and the cash conversion cycle. Build<br />
and conserve cash, and possibly even draw down on interest<br />
bearing credit facilities while you still have the opportunity.<br />
• Forecast near-term cash receipts and cash disbursements<br />
based on realistic financial projections. Keep in mind<br />
customers are likely to pay their bills more slowly.<br />
• Reduce inventory levels and replenish on a just-in-time basis.<br />
Sell your slow moving inventory at a discount to convert<br />
working capital to cash.<br />
• Liquidate other non-redundant assets to free up cash.<br />
• Assess new business opportunities in the context of cash<br />
requirements and infrastructure build-out costs. If the cash<br />
flow of the company is not strong, this will only cause more<br />
problems for you in your cash conversion cycle.<br />
Stay close to your banker<br />
If you have a good working relationship with your lender, you<br />
may be in a better position to renegotiate your current loan<br />
facilities. Treat your banker as a partner in the business, and<br />
keep them informed of critical issues affecting the business and<br />
the industry. Provide your banker with your plan on how you<br />
intend to combat the economic challenges and give them plenty<br />
of notice if you need their help. Banks will tend to stay with a<br />
client when their financial plan is realistic.<br />
Slash costs where possible<br />
Tough economic conditions with falling sales volumes require<br />
cost cutting measures wherever possible. Consider:<br />
• Reducing spending – talk directly to floor and office<br />
employees to see if there are any items that can easily be cut<br />
without affecting the sales levels of the company.<br />
• Deferring capital expenditures in order to conserve cash.<br />
• Making tough decisions about payroll costs.<br />
Be careful not to automatically cut marketing type expenses, as<br />
this will affect your sales levels and could impact your competitive<br />
position, particularly when things start to pick-up again.<br />
Concentrate on good customers and suppliers<br />
A careful review of your customer base is critical when<br />
developing a financial forecast. If customers are becoming<br />
increasingly slow in paying their accounts this may be a red<br />
flag. It’s prudent to drop some customers during this period of<br />
economic turmoil and sacrifice sales levels, rather than selling<br />
them products or services that you may never get paid for.<br />
Bargain for favourable credit terms with your suppliers, and if<br />
possible, negotiate for early payment discounts as most suppliers<br />
will be hungry for cash. Consider whether you can slim down the<br />
number of suppliers you are currently using so that you may be<br />
able to get larger volume discounts with existing suppliers.<br />
While the recession has likely been hard on your business, the<br />
above tips should help you to ensure that when the economy<br />
does emerge from under this dark cloud, that you and your<br />
business will be in an even better position. If you are concerned<br />
about the viability of your business, remember that the earlier<br />
you seek help, the greater are your chances of success.<br />
David Filice is a vice president in the Restructuring and Insolvency<br />
Practice of Fuller Landau LLP, Chartered Accountants and Business<br />
Advisors. Contact David at dfilice@fullerlandau.com.<br />
32 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
events calendar<br />
March 2010<br />
7 - 9<br />
CRFA Show<br />
Toronto, Ont.<br />
crfa.ca/tradeshows<br />
9 - 21<br />
NAMP <strong>Meat</strong> <strong>Industry</strong><br />
Management Conference<br />
<strong>The</strong> Drake Hotel<br />
Chicago, Illinois<br />
namp.com<br />
April 2010<br />
18 - 19<br />
ApEx<br />
Halifax, N.S.<br />
crfa.ca/tradeshows<br />
21 - 23<br />
SIAL Canada<br />
Montreal, Que.<br />
sialcanada.com<br />
29 - 30<br />
BC Foodservice Expo<br />
Vancouver, B.C.<br />
crfa.ca/tradeshows<br />
May 2010<br />
8 - 13<br />
IFFA 2010<br />
Frankfurt, Germany<br />
iffa.com<br />
<strong>The</strong>foodnewz is an on line events calendar created by Debra Bradshaw of Zep Food<br />
& Beverage Division. To find out more about the events listed in this magazine visit<br />
thefoodnewz.com. If you know of events not listed please email Debra directly at<br />
zeprep@rogers.com.<br />
DO NOT<br />
MISS OUT ON THIS<br />
ONCE-A-YEAR<br />
OPPORTUNITY!<br />
meatbusiness.ca<br />
September/October 2009 Canadian <strong>Meat</strong> Business 33
| Business Spotlight |<br />
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September/October 2009 Canadian <strong>Meat</strong> Business 35
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36 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
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September/October 2009 Canadian <strong>Meat</strong> Business 37
| <strong>Meat</strong> Industr y Business Watch |<br />
Group Savings<br />
<strong>The</strong> benefits of group savings plans for businesses and employees.<br />
By James Sbrolla<br />
I<br />
n the last issue, this column looked<br />
at the benefits of retirement<br />
savings plans (RSPs). Some<br />
readers wondered why this was covered<br />
and thought this seemed odd for our<br />
magazine. <strong>The</strong> topic was covered to lay<br />
the groundwork for this article, which<br />
should be of great interest for our small<br />
to medium sized businesses that make<br />
up the meat sector.<br />
Many employers want to help<br />
employees save for retirement and<br />
are under the misconception that<br />
they are too small to offer a group<br />
benefit to their employees. Group<br />
RSPs (GRSPs) provide a mechanism<br />
to do just that, often at no cost to the<br />
company, and they can be done with as<br />
few as 10 employees. A GRSP is simply a<br />
collection of individual RSPs<br />
administered on a group basis. Some<br />
GRSPs are offered to members of<br />
associations, or unions, but most often<br />
it is an employer who sets up a GRSP.<br />
<strong>The</strong>re are several benefits to<br />
the employee; tax savings, regular<br />
contributions, cost savings and access<br />
to unique services often not available<br />
to smaller investors.<br />
As contributions to the GSRP are<br />
sent directly to the employee’s (or<br />
the spouse’s) RSP, no source tax is<br />
required to be withheld. So by using<br />
pre-tax dollars, more can be directed<br />
than if using after-tax dollars from<br />
a bank account. <strong>The</strong> net tax effect at<br />
year-end is the same as in an individual<br />
RSP, but instead the employee has had<br />
the use of their RSP refund for the full<br />
year, rather than sending tax money to<br />
Ottawa, and then waiting for a refund.<br />
Since the money comes off each<br />
paycheque regularly, GRSPs are a<br />
forced savings that can accumulate<br />
more quickly. Out of sight and out of<br />
mind, as the saying goes. Of course the<br />
plan is flexible, employees can increase<br />
or decrease, start or stop their amounts<br />
as often as their payroll processor<br />
allows them.<br />
Since employees are part of a group,<br />
they can see fee savings, varying from<br />
lower administration fees, lower<br />
investment management fees or<br />
premium deposit rates. Depending on<br />
the size of the group, these savings can<br />
be significant over what a retail investor<br />
would receive.<br />
And many GRSP plans offer access<br />
to a wider range of investments, or<br />
investment managers, some of whom<br />
are only available to large institutions.<br />
Many group plans offer access to<br />
enhanced retirement planning tools or<br />
professional advisors.<br />
So why would an employer offer a<br />
GRSP? Well for one, payroll deduction<br />
into a GRSP can generally be offered<br />
GRSPs remain the<br />
easiest kind of plan for<br />
employers to offer and<br />
maintain. Employees<br />
also understand and trust<br />
RSPs much more than<br />
other kinds of plans…<br />
as a benefit, and has no direct cost.<br />
However, many employers use the<br />
group plan as way to allow employees<br />
to shelter bonuses, or even set up a<br />
matching formula.<br />
For the employer, there are other<br />
options to help employees save for<br />
retirement, including several capital<br />
accumulation plans (CAP). <strong>The</strong><br />
latest Benefits Canada 2008 Capital<br />
Accumulation Plan Report, notes there<br />
are over 29,000 GRSP plans, in Canada,<br />
with over two million members. <strong>The</strong><br />
next largest kind of plan – DC pension<br />
– only has 13,000 plans and 1.5 million<br />
members. GRSPs remain the easiest<br />
kind of plan for employers to offer and<br />
maintain. Employees also understand<br />
and trust RSPs much more than other<br />
kinds of plans – and they appreciate<br />
that their contributions are not “locked<br />
in” like in a pension plan.<br />
<strong>The</strong>re are a number of options of<br />
GRSP suppliers in Canada. Most of<br />
the large insurance companies offer<br />
GRSPs, and they have the majority of<br />
the market. Some major brokerage<br />
firms offer GRSPs, as do a few mutual<br />
fund companies. However, Fidelity<br />
recently exited the GRSP marketplace<br />
in Canada.<br />
According to Carl Spiess, director<br />
of wealth management and senior<br />
wealth advisor at ScotiaMcLeod (the<br />
largest brokerage firm offering GRSPs<br />
in Canada), companies are looking<br />
more to firms that can provide advice<br />
to members.<br />
“With the ongoing volatility in the<br />
markets, employers want to be able to<br />
able to direct employees to a dedicated<br />
and experienced advisor, not just to a<br />
1-800 number into a call centre where<br />
they will reach a different clerk each<br />
time they call,” said Spiess.<br />
Current trends in the GRSP<br />
marketplace are toward auto enrolment,<br />
where employees automatically have<br />
a GRSP set up if an employer decides<br />
to make contributions to their plan.<br />
Also, target date (or life cycle funds)<br />
are becoming a popular investment<br />
option. In these funds, the investment<br />
mix becomes more conservative as the<br />
employee moves closer to retirement.<br />
Canadians are becoming more<br />
concerned about retirement, as the<br />
boomers move approach age 65.<br />
GRSPs are a significant, cost effective<br />
and flexible tool an employer can<br />
use to help employees save for<br />
their retirement.<br />
James Sbrolla is a Torontobased<br />
management consultant<br />
and can be reached at<br />
416.234.5120<br />
or sbrolla@rogers.com.<br />
38 Canadian <strong>Meat</strong> Business September/October 2009 meatbusiness.ca
201 Don Park Road Unit 1, Markham, Ontario, L3R 1C2<br />
Phone: 905-470-1135 1-800-465-3536 Fax: 905-470-8417<br />
Website: www.yesgroup.ca email: sales@yesgroup.ca<br />
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