The Meat Industry

September/October 2009
First Class:
The Meat Industry
Hall of Fame
Canadian Publications Mail Product Sales Agreement 41689029
Halal Market
Opportunities
Animal Welfare Innovations
Guest Editorial:
Canada’s Opportunity
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Volume 8, Number 5
September/October 2009
5 Guest Editorial
by Robert de Valk
6 First Class: The Meat Industry Hall of Fame
11 Retort Process Offers Opportunities
6
12 A Matter of Ethics, Economy and Taste
by Dominique Bastien
14 Which Preservative to Use?
16 Increasing Output Without Sacrificing Quality
by David Rizzo
20 The Next Generation of Probiotics
21 NAMP Elects New President and Board
22 A
ssembly Line
24 I ndustry Roundup
26 Eliminating Back Breaking Work in the Food Industry
by Del Williams
28 C
ross Country News
30 Faith in the Market: Halal Opportunities
by M. Eshan Sairally
32 G
et your Business Ready for the Upswing
by David Filice
33 Events Calendar
38 M
eat Industry Business Watch
by James Sbrolla
12
22
meatbusiness.ca
26
September/October 2009 Canadian Meat Business |
September/October 2009 Volume 8 Number 5
Food Opportunity
Ray Blumenfeld
[email protected]
Alan MacKenzie
[email protected]
CONTRIBUTING WRITERS
Robert de Valk, Dominique Bastien, David Rizzo,
Del Williams, M. Eshan Sairally, David Filice,
James Sbrolla
CREATIVE DIRECTOR
Krista Kline
FINANCE
Jerry Butler
Canadian Meat Business is published
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Printed in Canada.
ISSN 1715-6726
meatbusiness.ca
|
Canada's Competitive
PUBLISHER
EXECUTIVE EDITOR
Guest Editorial
F
or a country to have a
competitive meat industry, a
number of prerequisites have
to be in place. One is that the country
has to be able to grow a supply of
competitively priced feed grains. This
requires a fertile land base, as well as
access to sufficient water, fertilizer and
a supportive climate. Canada has all of
this, and since available agricultural
land is combined with a small
population, Canada’s food production
abilities far exceed the consumption
demands of Canadian consumers.
This picture can also be painted
for meat and poultry production,
making Canada one of only a handful
of countries that can produce and
manufacture more meat and poultry
than can be consumed.
As some economists would observe,
Canada has a competitive advantage
in the production of meat and
poultry. Looking ahead, experts have
calculated that food production will
have to double over the next decade to
feed three billion more consumers by
2050. This suggests Canada has at least
an opportunity, if not a responsibility,
to ensure our agricultural resources
are used to the full extent possible.
News from the state of Utah that the
use of roadside acres for agricultural
production is being tested shows
that the future is approaching more
quickly than many imagine. Producing
only enough food to supply Canadian
consumers is not an acceptable option
for Canada, as global demand for food
continues to grow.
The opportunity to utilize a
country’s
competitive
advantage
in meat and poultry production is
well recognized by the firms making
up the international meat market.
Consolidations are taking place by
companies based in one of the lowestcost producers in the world. With the
recent merger of Perdigao and Sadia
S.A., a new company, Brazil Foods S.A.,
was formed and this firm is currently
the largest poultry producer in the
world. By purchasing a controlling
interest in Pilgrim’s Pride, JBS
S.A. adds to its poultry operations,
but is already the world’s largest
beef producer, and Brazil’s largest
multinational food company. The
financial strength of these companies
continues to improve, supported by
friendly governments. There is no
doubt that the government of Brazil
for the past 20 years has supported and
pushed the development of a low cost
feed grain supply. Firms were set up to
take advantage of this solid foundation
to become world leaders. Why has this
not happened in Canada?
Part of the answer lies in Canada’s
divided jurisdiction when it comes to
food and agriculture. It is difficult in
Canada to develop national strategies
to exploit the competitive advantage
in food, meat and poultry production.
Interestingly, some sectors overcoming
the jurisdictional issues are the chicken
and turkey industries, operating under
supply management. For those sectors,
the federal-provincial issues have been
“organized,” by way of legislation.
The federal and provincial ministers
of agriculture recently decided to
adopt traceability by 2010. On food
safety, ministers agreed to support
a national science-based approach.
These are good decisions, but the
key is implementation. The meat and
poultry industries should be a high
priority for Canada, and have their
own federal department, covering the
entire supply chain from producer
to consumer. However, there is not
federal department, industry players
are weak, and there is no common
vision.
Unless this picture changes,
Canadian firms will be the target of
international players, and Canada’s
roll in the international meat and
poultry business will continue to
decline. This does not need to be the
outcome, because Canada’s ability
to be a niche marketer has been well
documented over the years. Where is
the leadership going to come from to
capture this opportunity for Canada?
Robert DeValk is an Ottawa-based food
consultant who has served the Canadian meat
and poultry industry for over 25 years.
September/October 2009 Canadian Meat Business Cover Stor y
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Photos: Meat Industry Hall of Fame
|
Former CBS News anchor Bill Kurtis will be
the Keynote Speaker at the MIHOF induction
ceremony in Chicago.
Heads of
the Class
Inaugural list of inductees elected to the Meat Industry Hall of Fame.
T
he initial class has been elected to
the newly formed Meat Industry
Hall of Fame (MIHOF).
The 21 members – announced in
August – were chosen in voting by the
hall’s Board of Trustees from among
more than 70 executives, researchers,
innovators and association leaders across
all sectors of the industry.
“We are thrilled to include in our
first class a group of truly outstanding
leaders,” Dan Murphy, executive director
and MIHOF co-founder, said in a release.
“These are men and women credited with
fostering much of the profound change,
remarkable progress and substantive
success of the industry. We’re proud to
celebrate their legacies.”
The induction ceremony will take place
Oct. 27, 2009, at Chicago’s Hard Rock
Hotel. “That will be a night to honour a
virtual ‘who’s who’ of the industry,” added
Chuck Jolley, MIHOF president and cofounder.
Acclaimed television host, network news
anchor, author and business entrepreneur
Bill Kurtis has been named the keynote
speaker for the event.
During his 40 years in broadcasting,
Kurtis, who served as the CBS Morning
News anchor and was a long-time
newscaster at CBS Television affiliate
WBBM in Chicago, became best-known
as the producer and host of the popular
Investigative Reports, Cold Case and American
Justice programs on the A&E Network. He
recently gained even greater popularity
among a new generation of fans as a
result of his work as pitchman for AT&T
Mobility, spoofing his “serious journalist”
persona in a series of ads with tennis star
Andy Roddick, Olympic gold medalist
Michael Phelps and boxing champion
Floyd “Money” Mayweather.
In his speech to the members and
guests at the MIHOF dinner, Kurtis will
also discuss his role as an entrepreneur in
launching Tallgrass Beef, a company that
Canadian Meat Business September/October 2009
has built a network of family farmers and
ranchers raising grass-fed cattle. In 2005,
Tallgrass Beef became the first grassfed beef company to market its product
in Chicago when the legendary Harry
Caray’s Restaurant began selling its steaks.
Kurtis’s 10,000-acre Red Buffalo Ranch,
which borders the small town of Sedan,
Kan., is a working cattle ranch located in
the one of last remaining areas of North
America that still features untouched tall
grass prairie.
Future Canadian inductees
There are no Canadians in the
inaugural class, but Murphy, a former
industry editor and co-founder of
the hall, noted the hall considers the
industry to be a “North American
industry.” He said there are plans to
have Canadian individuals named to the
hall in next year and in future classes.
If you have an idea of which Canadian
meat industry pioneers and innovators
meatbusiness.ca
should be named to the hall in future
classes, we’d love to hear from you. Email
your thoughts to [email protected]
– and we’ll let MIHOF officials know
who you think is deserving of
this honour.
Courtesy of MIHOF, here are
biographies of some of the inductees.
Bios on the remaining individuals will
be featured in the next issue of Canadian
Meat Business.
Donald L. Houston
(posthumous)
Don Houston served as administrator
of the U.S. Food Safety and Inspection
Service (FSIS) from 1979 to 1987, and the
U.S. Department of Agriculture’s (USDA)
from 1987 to 1988.
He was born in East St. Louis, Illinois
in 1934. After receiving a bachelor’s and
Doctor of Veterinary Medicine degrees
from the University of Illinois, Dr.
Houston served as a captain in the U.S.
Army Veterinary Corps from 1959 to 1961.
He then joined the USDA as a veterinary
meat inspector.
Houston was cited numerous times
for his efforts to promote opportunites
for women and minorities in the federal
government. He initiated the Executive
Staff Officer training program and
the Career Develpoment Program for
Women.
His distinguished career was cut short
by cancer; he died on Feb. 19, 1988.
Temple Grandin
Temple Grandin is arguably the most
accomplished and well-known adult
with autism in the world. She has been
featured on several major TV programs
and national publications in the U.S.
Grandin didn’t talk until she was over
three years old, communicating her
frustration instead by screaming and
humming. In 1950 she was diagnosed
as autistic and her parents were told she
should be institutionalized. In her book,
Emergence: Labeled Autism, she stunned
the world because until its publication
meatbusiness.ca
September/October 2009 Canadian Meat Business |
Cover Stor y
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most professionals assumed being
diagnosed autistic was a death sentence to
achievement in life.
She earned a bachelor’s degree in
psychology from Franklin Pierce College
in 1970, a master’s degree in Animal
Science from Arizona State University
in 1975 and her Ph.D. in animal science
from the University of Illinois in 1989.
Eventually Grandin used her ability to
“see” the world as animals do to launch a
successful livestock handling equipment
design firm. She has designed the facilities
in which half of all U.S. cattle are handled,
consulting for such firms as Cargill, Swift
& Company, Burger King, McDonald’s
and others.
Frank Perdue (posthumous)
Frank Perdue was born in 1920, the
same year that his father, Arthur W.
Purdue, built a chicken coop in the back
of his family’s Salisbury, Maryland home
and entered the egg business. In 1939
Frank left college to become Perdue
Farms’ third full-time employee. By
1950, when he took over leadership, the
company boasted 40 emloyees. He grew
the company tremendously, investing in
grain facilities, feed mills and a soybean
refinery. Eventually he expanded into
fresh poultry.
Perdue Farms became the No. 3 poultry
company in the U.S. – with more than
20,000 associates, operations in 15 states
and a production of more than 50 million
pounds of poultry per week. Perdue served
as chairman of the executive committee
of the company’s board of directors until
his death at age 84.
Eventually Perdue became the first
hands-on CEO to earn fame outside his
industry as the company’s advertising
spokesman. His first TV commercial
in1971 was ranked by Advertising Age
magazine as one of the best campaigns of
the year.
Jimmy Dean
Jimmy Dean was one of the consummate
American entertainers of the 1950s and
1960s. A country music singer-songwriter,
TV variety show host and actor, Dean won
a Grammy Award in 1961 for his No. 1 hit
“Big Bad John.” More importantly, he was
one of the few celebrities – Paul Newman
being another – to successfully launch a
food company that not only traded on his
fame, but became a category leader in its
own right.
Born on a farm in Plainview, Texas
in 1928, Dean grew up dirt poor. At 18
he joined the U.S. Air Force and while
stationed at Bolling Air Force Base near
Washington, D.C. he launched his career
as an entertainer, singing songs spiced
with some tall Texas tales.
In 1968, as his show business career
started to wind down, Dean opened his
first fresh pork sausage plant in Plainview,
Texas and soon expanded into Louisiana
and Oklahoma. By 1972 he’d stopped
recording regularly, but the Jimmy Dean
Sausage Co. had opened a new plant in
Oscelo, Iowa and Dean took a more active
role in marketing and operations.
By 1984, when he sold his company to
Sara Lee, the Jimmy Dean brand was the
No. 1 breakfast sausage in America.
USMEF and other exporting interests to
government and private entities regarding
international trade policy and foreign
market development issues related to U.S.
red meat products.
Raised on an Iowa farm, Seng was
UMEF’s Asian director for six years and
was named president and COO in January
1990. Fluent in Japanese, he played a
central role in opening the Japan’s beef
market and is an authority on Japan’s
complex distribution system.
Louis “Mick” Colvin
Lawrence D. Starr
(posthumous)
Lawrence Starr was a Kansas City native,
philanthropist and business leader who
turned Koch Equipment into a world
leading supplier of food processing and
packaging equipment. Starr received a
bachelor’s degree in biology from the
California Institute of Technology in
1953. His advisors were Nobel Laureate
winners Dr. Linus Pauling and Dr. George
Beadle, who later became president of the
University of Chicago. In 1955 he earned
a Master’s degree in food technology from
the Massachusetts Institute of Technology,
then entered the U.S. Army, serving
as an undercover agent with the Army
Inteligence Service in West Germany.
Upon returning to Kansas City, Starr
worked at the family business – Koch
Supplies Inc. – in various management
positions. He took over from his father
in 1966 and created an industry-leading
company providing equipment to the
meat, food processing and packaging
industries.
Starr was recognized as a pioneer
in introducing vacuum packaging
technology in the U.S., but his global
vision led him to focus on international
opportunities. Koch eventually built meat
processing facilities in the former Soviet
Union, Poland, Hungary, the Czech
and Slovak Federal Republics, China,
Micronesia, Trinidad and Mexico.
Philip M. Seng
As president and CEO of the U.S.
Meat Export Federation (USMEF), Phil
Seng oversees the group’s operations
worldwide, providing direction for
USMEF strategies and priorities in
international
programs,
research,
technical services, industry relations
and global communications. He also
serves as the primary spokesman for
Canadian Meat Business September/October 2009
During his 55 years in animal
agriculture, Mick Colvin worked as a
farm manager and herdsman, earning
the coveted John B. Memorial Trophy
for Herdsman of the Year in 1963.
He then served as field man for the
American Angus Association in 1968,
and he established Colvin Angus Farm
soon afterward. By 1978, Colvin’s vision,
integrity and determination led him
to embark on his most noted role as a
brand creator and beef marketer with the
Certified Angus Beef (CAB)brand.
He believed that quality and consistency
would result in increased consumer
demand for beef, and the success of CAB
was arguably the key driver of a massive
paradigm shift in the beef industry, as it
ushered in the era of specification-based,
value-added, brand name beef and beef
products.
As CAB executive director for 21 years,
Colvin took the concept of identifying and
marketing beef with consumer-focused
quality specifications to a worldwide
brand. CAB product became the
benchmark for quality within the food
industry and a catalyst for consumerdriven approaches to cattle production
and beef marketing. During 2008, 634
million pounds of CAB products were sold
to consumers throughout the U.S. and in
45 other countries, including Canada.
Continued on Page 10
meatbusiness.ca
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Cover Stor y
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Richard L. Knowlton
Richard Knowlton began his career at Hormel Foods in
1956 as merchandising manager. He became the company’s
president and COO in 1979 and chairman and CEO in 1981. He
managed Hormel Foods to consistent profitability and propelled
the company into the future by spearheading a company-wide
emphasis on development of value-added, convenient food
produtcts.
In one 18-month period in the 1980s Knowlton spurred
Hormel to introduce 134 new products. On his watch Hormel
acquired turkey processor Jenni-O Foods, a catfish company
and Chi-Chi’s brand line of ethnic and Mexican foods, vastly
expanding the company’s shelf presence, market share and top
and bottom lines.
In 1992 Knowlton won the Horatio Alger Award, a recognition
he shares with such luminaries as Hank Aaron, Henry Kissinger,
Maya Angelou, Gen. Colin Powell and Tom Brokaw.
Richard E. Lyng (posthumous)
Richard Lyng served as Secretary of Agriculture under U.S.
President Ronald Reagan from 1986 to 1989. Born in San
Francisco, he earned a bachelor’s degree from Notre Dame
University in 1940, then served in the U.S. Army during the
Second World War. Fellow soldiers, impressed with Lyng’s
baritone voice, urged him to explore a music career after the war
– which he did, scoring a series of regional hits with a doo-wop
group called the Ding-a-Lyngs.
In 1973 Lyng was named president of the American Meat
Institute, a post he held until 1979. During that time he worked
for 1976 Republican president nominee Gerald Ford by heading
up a group called “Farmers for Ford.” Four years later he assisted
Ronald Reagan as the campaign’s co-director of the farm and
food committee. When President Reagan took office in 1981 he
named Lyng Deputy Secretary of Agriculture, where he worked
as the department’s lobbyist.
After the passage of the 1985 farm bill, then-USDA Secretary
John Block resigned and President Reagan nominated Lyng. At
67 Lyng became the oldest secretary to ever take office in the
U.S. During his term he dealt with many pressing farm issues,
including a devastating 1988 drought, for which he helped push
a $4 billion relief bill for farmers and livestock producers through
Congress.
Robert L. Peterson (posthumous)
Bob Peterson began his career as one of IBP Inc.’s original
cattle buyers when the company was founded in 1961. He was
named CEO of the company in 1980 and chairman in 1981.
Following IBP’s purchase by Tyson Foods, he served on Tyson’s
board of directors until November 2003, when he resigned for
health reasons.
Peterson was instrumental in re-shaping the economics of the
entire meat business. During the 1970s he turned the company’s
innovative “Cattle Pak” boxed beef concept into the industry
standard. Before IBP’s Dakota City, Nebraska plant pioneered the
idea of a “disassembly line” cattle were routinely slaughtered at
Midwestern packing plants in the U.S. the swinging beef was then
shipped in trucks or railcars to breaking operations, generally
located near big cities in the east. From there, primal cuts were
fabricated, wrapped in butcher paper and distributed to steak
cutters, grocery stores and restaurants for final portioning and
packaging by skilled union butchers.
Peterson changed all that by centralizing slaughter, fabrication
and vacuum packaging at a single plant. In the 1980s he
spearheaded a similar high-volume, streamlined breaking and
packaging process in the pork industry, turning the company’s
newly acquired Storm Lake, Iowa pork plant into a pioneering
study of how to actually implement the hoariest of all business
clichés: taking costs out of the system.
The remaining inductees are:
• Dell Allen, Ph.D., former professor at Kansas State
University and vice president of technical services and food
safety for Cargill Meat Solutions
• Donald Tyson, former senior chairman of Tyson Foods
• Gary C. Smith, Ph.D., professor at Colorado State University
• Joseph Luter III, former chairman and CEO of Smithfield Foods
• Paul Engler, founder of Cactus Feeders
• Ray Townsend, founder and former chairman, Townsend
Engineering
• Rosemary Mucklow, former executive director, National
Meat Association
• Russell Cross, Ph.D., professor and administrator, Texas
A&M University
• Mel Coleman SR. (posthumous), pioneer in raising
hormone- and antibiotic-free cattle
• Kenneth Monfort (posthumous), former CEO, Monfort Inc.
Formed in 2008, MIHOF is a permanent repository for the
accomplishments of the meat, poultry and livestock industries’
leading figures and epic events. Nominations are solicited annually
and are voted on by trustees representing livestock production,
meatpacking, processing, trade associations and scientific research.
- staff
10 Canadian Meat Business September/October 2009
meatbusiness.ca
Retort Process Offers Opportunities
BIC helps develop new packaging for retail and foodservice sectors
T
he Beef Information Centre
(BIC) has helped develop new
beef packaging options for
both retail and foodservice.
Flexible retort pouch packaging
provides a significant opportunity to
add value to beef and strengthen beef’s
position in the ready-to-serve market.
Retorting is a process that uses heat
and pressure to cook vacuum sealed
pre-packaged meat. Since the meat is
cooked in the package, the package
must be strong enough to withstand
relatively high temperatures (100-130
degrees C).
John Baker, BIC’s executive director
of trade marketing, says retort
processing used to be limited to the use
of glass and metal containers. Now, the
use of flexible pouches has reinvented
retort processing, making it ideal for
reduced heating times, enhanced
graphics and greater shelf appeal.
“The process is suitable for any beef
cut, resulting in restaurant quality beef,
meatbusiness.ca
whether presented as whole muscle,
beef strips, crumble or cubes,” he says.
Retort processing improves product
eating consistency regardless of age and
grade, especially for hip and chuck cuts,
producing fork-tender beef without
requiring aging time or other process
control like mechanical tenderizing
and
moisture
enhancement/
marination. This creates an excellent
opportunity to utilize secondary
cuts from commercial/mature beef,
no matter what the grade, that in
the past would only be suitable for
ground and/or restructured products,
creating an opportunity to capture
higher premiums.
BIC performed both product and
consumer testing of retort processed
beef and results are extremely
positive. The process produces forktender, moist beef and consumers
participating in the testing said it had
a favourable appearance and taste with
over 85 per cent saying they like or
extremely like the product. Not only
did the flexible pouches have a higher
quality perception over other retorted
packaged formats (cans and glass
jars), consumers liked the fact beef
was prepared using no preservatives
and that retorted beef maintains all
the nutritional benefits of eating
lean beef.
The retort process results in products
that are suitable for many existing and
unique markets, including ritualistic
preparation techniques required for
foods produced as halal or kosher.
“The sealed package allows for
segregation of halal and kosher
products in production and at point of
purchase,” notes Baker. “This provides
the opportunity to supply this growing
market segment, including grocery
retailers, hotels, campuses, correctional
facilities, institutions, cruise lines, rail
and airline caterers.”
- staff
September/October 2009 Canadian Meat Business 11
A Matter of Ethics,
Economy
and Taste
Innovative approaches to animal
welfare being developed by AAFC.
By Dominique Bastien
A
Photos: Agriculture and Agri-Food Canada
s a consumer, are you concerned about how animals
are treated before they become a tender and tasty
cutlet on your plate? About whether animal husbandry
methods affect the quality of the meat? About whether the
quality of your food is affected by the transporting of animals
and what happens in the hours before slaughter?
If you answered yes to any of these questions, you are not
alone. For years, these questions have motivated a large amount
of research on the welfare of farm animals by a number of
researchers at Agriculture and Agri-Food Canada(AAFC).
Some of the results even suggest that improving animal welfare
could be an effective economic avenue. Several innovative
approaches to the treatment of farm animals have already
been developed, and others are coming. Work on this is being
done at the Dairy and Swine Research and Development
Centre in Sherbrooke, Que., the Lethbridge Research Centre
and the Lacombe Research Centre in Alberta, and the Pacific
Agri-Food Research Centre in Agassiz, B.C.
The Dairy and Swine Research and Development Centre
in Sherbrooke is the only centre in Canada that manages a
program on the welfare of swine from birth to slaughter, a
program developed both to meet industry needs and in
response to consumers’ emerging concerns.
Work on swine welfare has been under way for a long time
at AAFC. In the 1980s, Dr. David Fraser in Ottawa and Dr.
Suzanne Robert in Sherbrooke studied swine behaviour
and welfare. More recently, in 1999, Dr. Luigi Faucitano
began working at the research and development centre in
Sherbrooke; in 2005 he was joined by Dr. Nicolas Devillers
and Dr. Stephanie Torrey.
In 1999, Dr. Faucitano initiated the research program
on preslaughter management, a program that studies how
the animals are treated from the time they leave the farm
to the time of slaughter. He has gone from having a single
collaborator in 2003 to enjoying the collaboration of four
abattoirs—two in Quebec and two in Manitoba—and five
provincial federations of pork producers.
This is fortunate, as the research shows beyond any doubt
that swine muscle metabolism is directly affected by stress.
Dr. Faucitano says that, if a hog is treated badly, even in the
very last seconds before slaughter, the stress will permanently
affect the quality of the meat. Treatment of the animal in
the preslaughter period (fasting, transport to the abattoir,
handling, etc.), if poor, can wipe out months of properly done
fattening on the farm. How could we have known this without
the researchers’ work? The participation of the swine sector
12 Canadian Meat Business September/October 2009
meatbusiness.ca
points to improvement of slaughter
conditions in the coming years.
The quality of life of swine begins
with the living conditions of the breeder
sows and their piglets, a subject studied
by Dr. Stephanie Torrey and Dr. Nicolas
Devillers. Already, in Europe and the
United States, the practice of confining
gestating sows to stalls is gradually being
eliminated, and the use of crates for
lactating sows is being questioned.
Dr. Devillers is studying the
characteristics of alternative housing to
improve the welfare of lactating sows.
The new housing gives the animal more
room in which to move and engage in
natural behaviours. The swine industry
has everything to gain by opting for
better housing for sows, as this will result
in healthier animals, that is, animals
with fewer locomotive problems and
fewer stereotypical behaviour problems,
and they will pay less in veterinary fees,
an important economic benefit not to
be forgotten.
Moreover, the research being done by
Dr. Devillers tends to show that not using
crates for lactating sows encourages
maternal behaviour in the animals,
a definite advantage for improving
the welfare of the sows and their
meatbusiness.ca
piglets. Study of alternative housing is
a promising avenue for the quality of
swine production.
Through her studies on piglets, Dr.
Stephanie Torrey is also contributing
significantly to the improvement of hog
farm conditions. Her research focuses on
the welfare, health and viability of small
…promoting production
that is more respectful
of the quality of life of
livestock reflects growing
public attention to ethical
considerations.
piglets. Over half of her work is research
done on hog farms. For example, she
is conducting various experiments to
analyse in depth the effects of early
weaning, the factors influencing the
piglet’s ability to get enough food and
the effects of painful procedures, such
as docking and castration, on piglet
behaviour. All these are elements that
can have a marked effect on piglet
development and growth.
Many more examples could be cited to
illustrate the contribution of researchers
at the AAFC research centres to
advancing knowledge and developing
practices to improve the welfare of
farm animals. Of course, promoting
production that is more respectful of
the quality of life of livestock reflects
growing public attention to ethical
considerations. In addition, however,
with a view to helping the swine industry,
AAFC researchers have demonstrated
the links between animal welfare
and greater productivity. Improved
productivity will be possible when the
industry works to decrease hog mortality
during transport and to improve the
health of the animals at the various
stages in their life. Also, development
of new preslaughter expertise makes
possible the production of higherquality meat. Could we be discovering
that better treatment of farm animals
can improve people’s quality of life?
Dominique Bastien works for Agriculture
and Agri-Food Canada’s communications
department. She wrote this article in
collaboration with Dr. Luigi Faucitano, Dr.
Nicolas Devillers and Dr. Stephanie Torrey
September/October 2009 Canadian Meat Business 13
Which
Preservative to Use?
Two of the most common preservatives in use today are potassium sorbate
and sodium benzoate – but which is the right one to use, and when?
P
eople have been attempting to
preserve food for centuries to
prolong the time that food could
be stored. Today we not only preserve
foods for later use, but also aim to preserve
a food’s nutritional characteristics as well
as its appearance. Chemical preservatives,
which create environments where microbes
cannot survive, are preferable to physical
processes, like drying, since they tended to
preserve the quality of the food as well as
extending its “shelf life.”
The earliest chemical preservatives
used were sugar and salt. These were
used to preserve fruit and meat, creating
an environment of high osmotic pressure
hostile to most harmful microbes. However,
sugar and salt had two problems; first, they
were only marginally effective against
molds, and second, they changed the taste
of the foods they preserved.
Modern chemical preservatives are
capable of retarding or preventing the
growth of microorganisms to prevent
or slow the spoilage of food, while still
maintaining its quality. Two of the most
common examples in use today are
potassium sorbate and sodium benzoate.
But which is the right one to use, and
when?
In choosing a preservative, processors
must take into consideration the product
in question, the shelf life required, the
ease of application of the preservative, the
spoilage organism of concern and most
importantly, the expected final pH of the
product.
Potassium sorbate
Potassium sorbate is used in a variety of
foods and can be used as a direct additive,
a spray or dip bath, or as a coating on
wrapping material, and inhibits yeasts,
molds, and bacteria. It is effective against
microbes at pH 6.5 or less (as the pH
decreases the antimicrobial activity of this
In choosing a preservative,
processors must take into
consideration the product
in question…and most
importantly, the expected
final pH of the product.
preservative increases). Normal usage
levels are in the range of 0.05 - 0.1 per cent
in products like cheeses, baked goods,
spreads, margarine, dried fruits, jams and
jellies.
Since sorbates have no effect on
organisms that produce lactic acid, they
can be used to prevent the yeast and
mold spoilage of foods like cultured dairy
products and pickles.
Sodium benzoate
Sodium benzoate is one of the oldest
of the modern chemical preservatives. It
is most effective in the pH range of 2.5 to
4.0. Benzoates have activity against yeasts,
molds and bacteria. However, they are not
recommended solely for bacterial control
because their activity is poor above pH 4,
where bacteria are the greatest problem.
They are most commonly used in fruit
juices, carbonated and non-carbonated
beverages, jams and jellies at up to 0.1 per
cent. Benzoate is also useful in margarine,
potato salad, fresh fruit cocktail and
pickles. Benzoates do not destroy yeasts or
molds but instead retard further growth of
the organisms already present.
Chemical preservative selection is based
upon the pH of the food first, then upon
the application. Sorbates, benzoates and
propionates are often used in combination
with each other, or an organic acid, to
improve efficacy.
A version of this article previously appeared
in The Main Ingredient, a bi-monthly newsletter
from Malabar Super Spice Co. Malabar provides
spices, ingredients, sausage casings, supplies and
equipment to meat and poultry processors across
Canada. For more information on phosphates,
contact Malabar’s technical team at lab@
malabarsuperspice.com.
PRESERVATIVE
COMMON
FORM
ANTIMICROBIAL
ACTIVITY
PH
RANGE
USAGE
MAX
Benzoates
Sodium Benzoate &
Benzoic Acid
Yeast, mold & select
bacteria
2.5 – 4.0
0.1%
Sorbates
Potassium Sorbate &
Sorbic Acid
Yeast, mold & select
bacteria
4.0 – 6.5
0.05-0.1%
Propionates
Sodium & Calcium
Mold
5.0-6.5
0.5%
Higher pH food, yeast leavened baked goods, cake mixes,
processed cheese, snack food, tortillas
Up to 4.0
GMP
Beverages, wines, shrimp, pickles, vegetable processing
Up to 6.0
0.02%
< 5.0
GMP
Dairy products, yeast leavened bread, gravies, sauces,
processed meat, jams, jellies, bakery and confections
Sulfites
Sulfur Dioxide, Sulfite salts Bacteria, yeast & mold
FOOD APPLICATIONS
Beverages, sauces, jams, jellies, salad dressing, fresh salads,
seasoning mixes, moist pet food, pickles, snack foods
Cakes, pastries, beverages, jams, jellies, dairy products,
seasoning mixes, dry fruit, snack food, dry sausages, fresh salads
Nitrites
Sodium nitrite
Some bacteria
Organic Acids
Acetic, Lactic, Citric,
GDL
Yeast, bacteria
Salt
Sodium & Potassium
Chloride
Bacteria
All
GMP
Dairy, bakery, processed meat, poultry, seafood, salad
dressings, sauces, gravies
Bombal®
Sodium Acetate &
Sodium Diacetate
Bacteria
(including Listeria
monocytogenes, E
Coli, Staphylococcus
aureus, Bacillus
cereus) & mold
All
0.5%
Cured and cooked meat & poultry
14 Canadian Meat Business September/October 2009
Cured meats and poultry
meatbusiness.ca
Photos: Unitherm
Agroin grows and harvest its own peppers, washes them,
roasts them in a flame griller, peels off the blackened outer
skin and immediately freezes and packages the product.
Increasing Output Without
Sacrificing Quality
Mexican food processor quadruples output, increases yield and
slashes energy costs with specially modified flame griller.
By David Rizzo
T
here is a universal challenge that faces almost every
small to medium-sized food processor throughout
the world. That is: how to grow big and meet the
increased demand that success brings, without sacrificing
the original taste and quality that attracted the demand in
the first place. But in the rush to expand, simply ordering
a standard piece of equipment, like a high-speed roasting
oven, and expecting it to duplicate a homemade process of
making prepared food is unrealistic.
Instead, today’s emerging food processors are becoming
market leaders by looking for equipment manufacturers
who are willing to customize high-volume equipment to
meet the exact needs of the process, so that the original
quality and taste can be preserved. In such manner, food
processors can feel secure in the knowledge that existing
and new customers will continue to purchase their product
well into the future.
As a bonus, processing equipment that is customized to
meet a food producer’s unique processes can also improve
yield, while also providing energy savings by reducing gas
and electric costs, thus further improving the revenue stream
and helping companies to grow.
Specially manufactured equipment
ensures success
Most every small to medium-sized food processor dreams
of getting discovered by a buyer from world supermarket
leaders like Wal-Mart, Costco, Tesco, Gigante, Gruppo PAM
or Caprabo. However, an invitation to supply product to
these giants requires a huge increase in production volumes.
Continued on Page 18
16 Canadian Meat Business September/October 2009
meatbusiness.ca
CUSTOM SIZES!!! CUSTOM WEIGHT LOADS!!! CUSTOM DESIGNS!!!
STAINLESS STEEL PROCESSING SCREENS
All BEACON Screens are custom manufactured
from T-304 Stainless Steel.
Our Challenge, considering the increasing cost
of stainless, is to design a screen to carry the
maximum weight with the minimum amount
of stainless. Our nearly 60 years of experience
allow us to do just that.
BEACON will engineer the exact Screen for your processing requirements!!!
Jerky Screens
V-Screens
Heavy-Duty
Screens
Double-Frame
Screens
Rib Screens
CALL US FOR A QUOTATION!!!
BEACON also manufacturers stainless steel
Trucks, Racks, Cages & Trees for all custom
designed Screens, as well as designs for
Smokesticks.
BEACON, Inc. 12223 S. Laramie Ave, Alsip, IL 60803 (708) 544-9900 Fax (708) 544-9999
www.beaconmetals.com
The fear is that the processor may not be able to maintain
the same level of quality if new high-speed equipment is
purchased. Yet keeping existing, low-volume equipment
risks losing the contract with the large stores.
“We have very limited production at our plant here in
Mexico, but our clients were asking for more and more
of our chili pepper products,” says Leonardo Randolph,
production manager for Agroindustria de Aguascalientes
S.A. de C.V.
Founded in 2003, Agroin operates as a division of La
Huerta, one the largest frozen produce exporters in Mexico
and a supplier of frozen vegetables to Wal-Mart. Agroin
processes the frozen poblano chili pepper line for La Huerta,
but its output was limited by its hand-built griller.
18 Canadian Meat Business September/October 2009
“We grow and harvest our own peppers, wash them, and
then roast them,” explains Randolf. “Afterwards, we peel off
the blackened outer skin and then immediately freeze and
package the product in different presentations. But our old
griller that roasts the peppers was a bottleneck in the whole
process. We had enough demand to more than triple our
output, but we realized that we would need three more of
our old roasters to meet the throughput that our new freezer
was capable of handling. We needed to process one metric
ton per hour, but our existing griller could only roast 250
kg. per hour.”
Aside from insufficient capacity, the construction of the
old griller invited inconsistencies in roasting, as the distance
between the gas burners and the product handling equipment
could vary, making it difficult to quickly and thoroughly peel
off the unevenly-blackened skin. At the output end of the
griller, some of peppers would fail to be separated from the
springs that carried them, which required a person to pull
out the stuck peppers by hand.
While attending a trade show in Chicago, Randolph and
La Hueta’s Ricardo Arteaga Barba was introduced to an
equipment manufacturer who offered to work on a solution
to their output problem.
“Because our pepper-roasting process is unique, we were
not sure that any standard griller could do the job correctly
and preserve the special taste of our product,” recalls Randolf.
“But Unitherm agreed to work with us, and they invited us to
their test kitchen in Oklahoma to design a flame griller that
would meet our specific needs.”
Unitherm Food Systems, based in Bristow, Oklahoma, is
recognized throughout the food processing industry for
its unique heat transfer systems that maximize yields and
reduce processing times. The company’s plant offers a fully
equipped test kitchen and a 3-D modelling program so that
every aspect of a new system can be reviewed and, if necessary,
modified to ensure it meets the needs of the processor.
“We flew straight from Chicago to their plant because we
wanted to ensure we could get something that would fit our
process exactly,” continues Randolf. “They brought in the
same type of green poblano chili peppers we use, roasted
them in their griller, and made adjustments until they came
out the way we wanted. We tasted them and they were really
good. We could see that this was going to work for us and
provide the production volumes we were seeking.”
The flame grill system like the one selected by the
principals at Agroin allows a wide range of customization
with belt widths from 20-60 inches, 8-50 ribbon burners,
meatbusiness.ca
adjustable bar markers with variable
grilling patterns and belt speeds from 5180 minutes.
Through collaborative efforts, a final
design was selected for a single flame
griller that could meet Agroin’s goal
of one metric ton of product per hour.
Preservation, if not improvement, in
product quality was achieved by the
grilling system’s ability to roast each
pepper on all sides, providing the soughtafter consistency.
“Unitherm’s griller was so efficient,
that we only needed one unit to do the
job of three or four of our old griller,”
says Randolph. “As such, we expect
our energy consumption, to shrink
tremendously. But the best part is that
we expect the quality to improve because
with the new equipment we can control
the speed of the griller bed, the amount
“…with the new
equipment we can control
the speed of the griller bed,
the amount of burners that
can be turned on, and the
quantity of heat going out
of the griller.”
– Leonardo Randolph,
Agroindustria de Aguascalientes
of burners that can be turned on, and
the quantity of heat going out of the
griller.”
An unexpected gain from this design
comes in form of increased yield.
“By weight, the product shrinks by
about 20 to 25 per cent, and this is normal
during the roasting process,” comments
Randolph. “However, the new griller can
limit that loss to 15 to 20 per cent.”
With the advent of equipment
manufacturers willing to modify their
machines, food processors wishing to
expand their market share can enjoy the
best of both worlds: increased production
volumes and the same great taste and
quality that made them a success in the
first place.
David Rizzo writes technical articles for many
industries, including the food industry for
Power PR, based in Torrance, California.
He has had published two trade books, 150
technical articles, and 300 newspaper columns.
meatbusiness.ca
September/October 2009 Canadian Meat Business 19
The Next Generation of Probiotics
Antibiotic resistance, de-stressed animals among benefits for producers.
A
Winnipeg-based company is
offering what it calls “the most
advanced second generation
probiotic in the world” – which is said to
have all the benefits of a regular probiotic,
but with added advantages not previously
available.
Galozyme is produced by Technavet
and is available in several varieties, each
designed for a specific animals – from
household pets to cattle, swine and
poultry. The company began selling
the product in 2007 after receiving
government approval.
According to Health Canada, probiotics
are “live microorganisms which, when
administered in adequate amounts,
confer a health benefit on the host.” For
human consumption they are commonly
found in some food products – including
yogurts, juices and soy products.
According to Technavet’s operations
director, Saverio Violi, probiotics have
been in use for over 25 years, but are used
more widely in Europe than in North
America, especially in terms of meat
production.
Violi said one of the problems with
using what he calls “first generation”
probiotics in the cattle or swine industry,
is that when antibiotics are added to an
animal’s system they kill the bacteria and
intestinal flora in the animal’s stomach,
making the probiotics useless.
He added that Galozyme is antibiotic
resistant – so producers using antibiotics
on their animals for certain illnesses
can still use the probiotic and get all the
benefits.
He noted the yeast in a second
generation probiotic is protected by a
tightened membrane that prevents the
acidity of the stomach from destroying the
living organism.
“Our second generation probiotic has
the capability tto by pass the gastric barrier
and works in the intestinal tract, where
all the breakdown actually happens,” he
explained. “And for every carbohydrate
molecule it comes into contact with
it produces two lactic acid molecules,
the fundamental building block for
metabolizing.”
Violi added that Galozyme has been
20 Canadian Meat Business September/October 2009
certified by the Organic Producers
Association of Manitoba.
He noted the product can help
producers by allowing animals to better
utilize vitamins, calciums and minerals,
which can lead to “better marbled meat.”
Other benefits, he added, include the
prevention of common illnesses in cattle,
such as ketosis, acidosis and scouring. He
noted that product also has a natural destressing ability, which can help animals
eat better, gain more weight and have
stronger immune systems.
The product, Violi said has its origins
in Italy, where it was developed (under
the name Turval) for the ministry of
defence for soldiers in Afghanistan. “The
government needed something for the
soldiers to assimilate vitamins, calciums
and minerals a lot quicker because they
were running themselves down in their
tours of duty and were coming back with
IBS (irritable bowel syndrome).”
For more information on Galozyme,
visit technavet.com.
-staff
meatbusiness.ca
NAMP elects
president and board
T
he board of directors for the North American
Meat Processors Association (NAMP) elected Gary
Malenke, president of Sioux-Preme Pork Products,
as the organization’s next president.
Malenke took office at the 2009 Outlook Conference
at The Broadmoor in Colorado Springs. He succeeds
Michael Strauss of Colorado Boxed Beef Co., who was
elected chairman of the board.
“I’m both humbled and honored to take the role as the
68th president of NAMP,” Malenke said. “The willingness
of members to share openly about business challenges is
truly one of the strengths of the association.”
Malenke began his career in the animal feed business,
which led him to IBP and then Sioux-Preme Pork. During
his 21 years at Sioux-Preme, he has held positions in
procurement, operations and sales before becoming
president in 2002.
The NAMP executive committee for 2009
– 2010 includes:
• Chairman - Michael Strauss Colorado Boxed Beef Co.
Auburndale, Florida
• President - Gary Malenke Sioux-Preme Pork Products
Sioux City, Iowa
• Vice president - Bobby Hatoff Allen Brothers, Inc.
Chicago, Illinois
• Treasurer - Jeff Saval Deli Brands of America Baltimore,
Maryland
• Assistant treasurer - Mike Satzow North Country
Smokehouse Claremont, New Hampshire
• Secretary - Phil Kimball CAE NAMP executive director,
Washington, DC
The NAMP membership also elected 13 members to the
board of directors.
Attention: Butchers with blunt knives – is this guy crazy?
“I Want To Send You A Free Pro
Electric Knife Sharpener Built
For Butchers Just Like You”
Just to prove it can produce razor sharp knives in
seconds...save you money and time...and create
a safer working environment. But only to trial for
30 days as part of this promotional test - and the
offer is strictly limited to the first 15 readers of
Canadian Meat Business who respond
My name is Chris Weidmark and I want to send you
a free Butcher’s Knife Sharpener which thousands
of butchers all over the United Kingdom, Australia,
Germany and other parts of the world swear by.
Why do they love it? Simple...Sharp knives always
ready when they need them...fast + easy...for pennies
a knife!
As a butcher you are well aware that a sharp knife is
much safer than a blunt one. It is 3x’s less likely to slip
off the meat towards your skilled and valuable hands.
A sharp knife is an efficient knife making your prep
time shorter and your aches and pains less.
Why Am I Making Such A Generous Offer?
It’s really quite simple. I know just how effective these
award winning knife sharpeners actually are (over
1,478 no nonsense Aussie butchers can’t be wrong)
and I figure the best way of proving this to you is to
allow you to put it to the test for 30 days at my risk.
So get ready to say goodbye to the monthly fees (&
yearly contracts) charged by your knife rental company
(who’s soft blades go blunt very quickly). And forget
about those expensive grinding machines. Because
with a little practice everybody in the shop will be able
to obtain a great working edge in less than 30 seconds
with the World’s #1 Butcher’s Knife Sharpener 280 by Nirey.
Remember Sharp = Safe, efficient and 30% less force.
The Way It Works Is Extraordinary!
Elected for terms expiring in 2010:
• Peter Bozzo, Chicago Meat Authority Chicago, Illinois
• Tim Vlcek, Vlcek’s Fine Meats, Inc. Chicago, Illinois
Elected for three-year terms expiring
in 2012:
• Chris Appert, Apperts, Inc. St. Cloud, Minnesota
• Michael Bernstein, Maid Rite Steaks Dunmore,
Pennsylvania
• John Bloch Michael’s Finer Meats Columbus, Ohio
• Steve Falcigno, Statewide Meats & Poultry New Haven,
Connecticut
• Lee Freidheim, Cougle Commission Chicago, Illinois
• Beau Heeps, K. Heeps, Inc. Allentown, Pennsylvania
• Joe Maas, JTM Provisions Harrison, Ohio
• Ross Shuket, Old World Provisions Albany, New York
• Andrew Sussman, Plymouth Beef Co. Bronx, New
York
• Kevin Tulley, Sysco Specialty Meat Co Houston, Texas
• Chris Mason, (associate) Wolf-Tec Kingston, New York
There are 2 perfectly angled, cushioned wheels, each
with a high quality aluminium oxide abrasive belt.
These rotate at an impressive 2500 rpm and with high
torque. The left wheel sharpens the left side of the
knife blade and the right wheel, the right side. During
sharpening, the knife is easily guided correctly in both
the left and right slots by the centre guide making it so
easy even a rookie apprentice could do it with a little
practice.
And the best part of all is you can try out the Butcher’s
Knife Sharpener by Nirey for free by calling me the
“Butcher’s Buddy” on 613-786-1000 (strictly limited
to the first 15 butchers who call) So act fast to avoid
missing out on this special meat business offer.
The only upfront cost is a $39.95 shipping and handling
charge. If you’re not satisfied, that’s all you’ll pay.
Simply call me and return the product with all original
packaging within 30 days. Distributors welcome to join
the sales team.
Don’t delay, Call me today at 613-786-1000
meatbusiness.ca
September/October 2009 Canadian Meat Business 21
|
Assembly Line
|
Assembly Line is an opportunity for companies to feature new products for the meat
producing, processing, packaging and distribution industry. To include information about your
new product e-mail [email protected].
Vemag’s Speedy Natural Casing Linker
Sausage processors will be especially interested in the new
high-speed Vemag LPG208 Length Portioning Machine with
Twin Rotating Linking Horns from Reiser. The company says
the machine is the fastest natural casing linker in the industry.
The LPG208 allows processors to increase sausage production
by 30 to 50 per cent without adding labor. The LPG208 features
two rotating linking horns to significantly reduce casing change
times and dramatically increase production. The automatic
two-horn system eliminates the downtime found in the startand-stop casing loading process of single-horn machines. As
the casing on the first horn is stuffed and linked, the operator
simultaneously loads a second casing onto the second horn. It’s
the most efficient use of the operator’s time.
reiser.com
Proprietary Metal Treatment Trims The Fat
From Your Blade Costs
American Cutting Edge’s proprietary Sub-Zero process
increases blade life by up to 50 per cent and prevents premature
edge wear, assuring users of a clean, effective cut every time.
The cryogenic metal treatment, developed through years of
research and experimentation and tested by partner firms and
independent laboratories, ice-hardens and tempers premiumgrade 400 stainless steel to create a G5 skinner blade that delivers
exceptional durability and blade life without increasing costs.
Additionally, ACE continues to offer skinner blades of
high carbon steel and stainless steel for end users who prefer
traditionally produced products. American Cutting Edge’s
goal is to always be the one blade supplier with the best cutting
solution for all meat skinning end users, while providing Grade
A customer service.
American Cutting Edge is a division of CB Manufacturing
& Sales Co., Inc., a manufacturer and distributor of industrial
knives and blades since 1965.
americancuttingedge.com
Neogen offers economical pathogen testing
Neogen’s GeneQuence assays for salmonella, listeria, and
listeria monocytogenes combine DNA hybridization technology
with the ability to process a few samples, or up to 372 samples
at once.
The company’s Reveal line of lateral flow microbial tests for E. coli
O157:H7, salmonella and listeria allows users to quickly and accurately
screen samples for these pathogens in as little as eight hours.
neogen.com
Z Tags Partners with Canada’s Remedy
Animal Health Products
Phoenix, Arizona-based Z Tags North America, L.P., a
world-wide leader in livestock identification products, recently
22 Canadian Meat Business September/October 2009
announced an exclusive distribution partnership with Canada’s
Remedy Animal Health Products LTD.
Remedy Animal Health will carry the full line of Z Tags animal
identification products and accessories.
Z Tags’ one-piece ear tag design with its patented, self-piercing
tip, pivoting applicator pin, and the darkest laser marking in the
industry, has quickly become a world-wide leader in livestock
identification by being the most durable ear tag available.
ztags.com
Avery Dennison Steam Valve Protects
Packaged Foods, Vents During Cooking
Manufacturers and packagers of
home-heated foods can now provide
hermetically-sealed protection against
contaminants and more accurately
regulate the in-home cooking process
with a unique new steam valve system
from Strongville, Ohio-based Avery
Dennison Industrial and Automotive
Products Division.
The steam valve system uses a
proprietary design that provides a hermetic seal when applied
over a pre-cut hole in flexible packaging or lidding film. During
the cooking process, the valve opens at a predetermined
temperature and allows steam to escape by exposing the
structure’s slitted or perforated baffle layer. The system can be
used in both microwave and oven applications.
According to Nick Greco, business development manager,
the steam valve’s hermetic seal guards food products from
contaminants more effectively than conventional steam-escape
methods that employ unguarded perforations.
Steam valves are completely clear, have excellent contact clarity
and can be printed with text, graphics and logos in one colour.
Users can print and apply the valves or source finished
packaging/packaging film with plain or printed steam valves preapplied. Avery Dennison offers label applicators, printers and
engineering assistance necessary to integrate the machinery into
the existing packaging lines of both end users and packaging
suppliers.
averydennison.com
Hyster Spotlights Lift Truck Cold Storage
Capabilities
Hyster Company, a leading lift truck designer and
manufacturer in North America, now offers a brochure showcasing
the cold storage features and capabilities of their wide range of
lift trucks.
The brochure highlights features such as enclosed traction/
hoist control, thermostatically controlled heaters on applicable
switches, sealed control handle switches, premium performance
anti-wear hydraulic oil and dielectric grease at wire harness
connections that allow Hyster lift trucks to operate in a wide
meatbusiness.ca
range of temperatures.
The company offers three environmental packages, including
a Subzero Freezer Package is available with an optional heated
floor for superior operator comfort and productivity.
The brochure also highlights the industry-first extreme
corrosion/wash down package, developed for highly corrosive,
high moisture environments such as food processing, pickling,
tanneries, salt and brine and chemical industries. This innovative
package includes a completely galvanized frame, lift linkage and
battery well and fork weldment, which eliminate rusting and
repainting to give the trucks ultimate durability and longevity.
hyster.com
Lemark/Primera to Enable In-House Label Printing
Lexmark International, Inc. has
expanded its collaboration with
specialty
printer
manufacturer
Primera Technology, Inc., to include
its award-winning color laser print
engines and consumables, making
in-house, high-volume label printing
affordable.
The CX1200 is intended for use by
label houses, print shops and other
print service providers as well as manufacturers of all types. It
prints full-color labels in a convenient roll-to-roll configuration
and enables businesses to print labels on demand. With an
estimated price of $18,995 (U.S.), the CX1200 prints at 16.25
feet per minute, with up to 1,250 feet printed per roll.
Ashworth Offers New Specially Formulated
Spiral Lubricants for Food Processing
Ashworth
Factory
Service
Corp. introduces SPIRALUBE,
a complete line of specially
formulated lubricants to reduce
maintenance and increase the
operating life of spiral freezers,
coolers and proofers. The line
includes Food-Grade Penetrating
Oil, Food-Grade Belt Oil, FoodGrade Bearing Grease and Gear
Oil. Each product is labeled to clearly identify the defined
application and when used at the recommended intervals,
spiral performance can be optimized and the operating life
increased.
Ashworth Factory Service offers a full range of engineering
services, including system refurbishment, trouble-shooting
and belt installation. On-call 24/7/365, Ashworth Factory
Service Experts provide food processing and material
handling companies peace of mind with decades of
experience, quality workmanship, and comprehensive
conveyor belt support.
ashworth.com
lexmark.com
meatbusiness.ca
September/October 2009 Canadian Meat Business 23
|
Industr y Roundup
|
Photo: AAFC
Government’s Plan for Hog Industry
Restructuring
On Aug. 15 the federal government
announced a plan to assist Canada’s
struggling pork producers, which
included a $75 million buyout for
those trying to leave the industry.
“We know Canadian hog producers
can become profitable again, but
we have to face tough realities to
Ag Minister Greg Ritz make our pork industry lean and
competitive,” Agriculture Minister
Gerry Ritz said in a release. “Some operations simply aren’t
viable any more and we are going to help them transition out of
the industry and reduce production.”
Other initiatives announced as part of the strategic plan
include:
• An International Pork Marketing Fund of $17 million for
market research, promotion and access initiatives to find
new customers for Canadian pork products.
• Long-term loans with government-backed credit that
financial institutions can offer to allow viable hog operations
to restructure their businesses.
“These new initiatives respect Canada’s commitments made
under international trade agreements and ensure Canadian pork
producers will continue to have access to market opportunities
around the world,” Ritz added.
The Canadian Pork Council (CPC) and Canadian Federation
of Agriculture (CFA) were consultants on the development of
the plan.
According to CPC chair Jurgen Preugschas, the world
pandemic caused by the H1N1 virus – which was unfortunately
referred to as “swine flu” – was the latest blow to the industry,
which was already dealing with high feed costs, high exchange
rates and U.S. mandatory country of origin labelling.
“As the transition plan is implemented, a leaner, greener and
more innovative industry will emerge – one that is prepared to
capitalize on both domestic and international opportunities,” he
stated in a release.
CFA president Laurent Pellerin said the program is good news
for producers, but warned that the dire situation facing the pork
industry is a long way from being resolved.
“Canada can not afford to risk losing this vital industry,”
Pellerin said in a release. “While these programs will go a long
way in providing much need immediate assistance for many
struggling hog producers, we need to keep in mind that the pork
industry is unfortunately not out of the woods yet. We encourage
the government to ensure the application and administration
details are available to producers as quickly as possible.”
CFA noted that recent data from Statistics Canada indicates that
exports of live animals in June 2009 was 34.1 per cent lower than
June 2008. Live animal export was $402 million lower between
January and June 2009 compared to same period last year.
Weatherill Report Makes 57 Recommendations
According to Maple Leaf Foods president and CEO, Sheila
Weatherill’s report on last year’s listeriosis outbreak was hard on
Maple Leaf, “but it ought to be.”
The report, released July 21 – six months after Prime Minister
Stephen Harper announced Weatherill, a former Edmonton
health authority president, would lead an investigation – made
24 Canadian Meat Business September/October 2009
57 recommendations to improve food safety in Canada.
Among the report’s key findings:
• Maple Leaf Bartor Road plant was aware that it had
occurrences of listeria in the plant in 2007 and 2008, and
tried to correct the problem with sanitation procedures
standard in the industry. The plant’s management thought
listeria was under control.
• Maple Leaf did not conduct the trend analysis required under
its listeria control policy. The recurring positive results were
not known nor were the positive results verified to determine
the presence/absence of listeria monocytogenes. At the
same time, the company was producing larger packages of
deli-meat products for sale to institutions, including hospitals
and long-term care homes. They had created a recipe that
used less sodium, which was attractive to the institutional
market as many of its clients benefited from reduced-sodium
diets. This combination of circumstances exposed vulnerable
populations to risk.
• Maple Leaf staff notified their superiors of the repeated
presence of listeria beyond the Bartor Road plant into the
head office. However, this information did not reach the
office of the CEO because it was thought that the plant’s
interventions had controlled the problem.
• Employees in the Bartor Road plant were not required to,
nor did they volunteer, information concerning the repeated
occurrences of listeria in the plant to the CFIA Inspectors.
“We thought we had a good food safety program last August,
but our efforts failed with tragic consequences,” McCain said
at a press conference. “Since then we have transformed every
aspect of our food safety program. We cannot and will not forget
the lessons of last August and that means imposing the highest
standard of food safety in every product we make.”
McCain noted that Maple Leaf has “for the most part”
recovered its business since the outbreak.
The report called last year’s crisis – which led to the deaths
of 22 people – the worst listeriosis in Canada’s history. It notes
that since 2005 the number of listeriosis outbreak cases reported
annually in Canada has doubled.
Approximately 40 per cent of those who became ill during the
2008 listeriosis outbreak died of the disease, the report said. The
average age of people who had listeriosis listed as the underlying
or contributing cause of death was 76. Almost 80 per cent of
those who developed listeriosis lived in a long-term care home or
were admitted to a hospital that had served contaminated delimeats from large packages produced specifically for institutions.
Other key findings included:
• The Compliance Verification System (CVS), is regarded
as a sound system and has broad support, but needs
critical improvements related to its design, planning, and
implementation.
• The CFIA inspectors had no obligation to request or examine
the company’s listeria testing results under their CVS tasks.
• In the lead-up to the outbreak the number, capacity and
training of inspectors assigned to Maple Leaf Foods Bartor
Road plant appear to have been stressed due to their
responsibilities at other plants.
• There is a need for increased coordination and improved
communication about food processing equipment among
the manufacturer, the food processor, and the CFIA
regarding design specifications and the validation of
sanitation procedures.
• The Public Health Agency of Canada did not consider it had
the federal leadership role, therefore there was a delay in
meatbusiness.ca
|
identifying the outbreak as a public health emergency.
• Health Canada’s Health Risk Assessment team was not
operating on a 24/7 basis during the summer of 2008, leaving
gaps in coverage during the response to the emergency.
Shaw Reappointed to FCC Board
please visit us at: www.sperlingind.com
Federal Agriculture Minister Gerry Ritz recently announced
the reappointment of Gill O. Shaw as chair of the Board of
Directors of Farm Credit Canada (FCC).
“Mr. Shaw has been doing an excellent job as chair of FCC’s
Board of Directors since 2006, and I am pleased he has agreed
to stay on for another three-year term,” Ritz said in a release. “We
look forward to seeing FCC continue helping Canadian farmers
manage these tough times.”
Since 1959, FCC has grown to be Canada’s largest provider
of business and financial services to farms and agri-businesses.
Through specialized and personalized business and financial
solutions delivered out of 100 offices throughout mostly rural
Canada, FCC works to meet the changing needs of the sector
and to ensure its prosperity. This is the sixth consecutive year
FCC has been recognized on the Globe and Mail’s list of 50 Best
Employers in Canada.
FCC reports to Canada’s parliament through the Minister of
Agriculture and Agri-Food. Shaw’s appointment is effective Oct.
30 for a term of three years.
Gill O. Shaw has over 30 years of experience in agricultural and
financial management, and is a specialist in large commercial
credit administration. From 1991 to 2002, he served as chief
executive officer of the Manitoba Agricultural Credit Corporation
Industr y Roundup
|
and, during that time, was a member of the executive committee
of the Manitoba Department of Agriculture. From 1989 to 1991,
he served as executive director of the Manitoba Farm Mediation
Board. He lives in Brandon, Man.
fcc-fac.ca
New Name for SIAL International Food
Tradeshow
The Montréal based International food tradeshow, SIAL
Montréal has a new name – SIAL Canada.
“This new name confirms the Canadian positioning of the
tradeshow and enhances its leadership in creating business
opportunities for both agrifood industry suppliers and buyers”
SIAL Canada COO Xavier Poncin said in a release.
For its seventh edition, the event will be held at the Palais des
congrès de Montréal convention center April 21 to 23, 2010. It
will feature conferences, workshops and live demos bringing
forward consumer insights and trends.
SIAL Canada is an international professional food tradeshow,
part of the SIAL network of four tradeshows on four continents,
7,500 exhibitors from over 100 countries and 200,000 visitors
from more than 200 countries.
SIAL Canada is organized in association with SET Canada,
the national equipment show for the food retail and
foodservice sectors.
sialcanada.com
“BOSS” equipment
Industry providers to the food industry for over 100 years...
• Focused on food safety with enhanced production reliability.
• Specializing in engineering, fabrication, installations, Beef & Pork.
• BOSS provides packers with reliable efficient equipment.
Sperling
Industries Ltd.
51 Station St, (Box 100)
Sperling, MB Canada R0G 2M0
1-204-626-3401 or
Fax 1-204-626-3252
Also:
Brandon, MB
1-204-729-9190
2420 Z Street, Omaha, NE 68107
1-402-556-4070
meatbusiness.ca
September/October 2009 Canadian Meat Business 25
Eliminating Back
Breaking Work
in the Food
Industry
Preventing back injury pays off in added
safety, capacity and productivity.
By Del Williams
W
Photos: Air Olift
henever commercial, manufacturer-sized loads are
lifted, moved or manipulated by operators in the
food industry, there’s risk of injury; and the larger or
more repetitive the load, the greater the risk.
Some proactive food companies, such as Great Lakes Cheese,
an award-winning manufacturer based in the U.S. that handles
250-lbs. and nearly 700-lbs. blocks of cheese, have heeded the call
to prevent operator back injury while benefitting from higher,
more streamlined production with the strategic use of lift devices
and attachments.
Operator injury risk
“According to the Bureau of Labor Statistics (BLS), more
than one million workers suffer back injuries each year, and
back injuries account for one of every five workplace injuries or
illnesses,” states an OSHA fact sheet. “Moreover, though lifting,
placing, carrying, holding and lowering are involved in manual
materials handling (the principal cause of compensable work
injuries) the BLS survey shows that four out of five of these injuries
were to the lower back and that three out of four occurred while
the employee was lifting.”
In 2006, injuries related to lifting, pushing, pulling, holding,
carrying or throwing cost U.S. businesses $12.4 billion in direct
costs, according to the 2008 Liberty Mutual Workplace Safety
Index. In fact, it can cost an individual employer up to $65,000
(U.S.) for a single back injury.
To prevent lifting injuries, OSHA offers suggestions including
the “installation of mechanical aids such as pneumatic lifts,
conveyors, and/or automated materials handling equipment.”
Operator and food safety
Award-winning cheese manufacturer Great Lakes Cheese is a
recipient of a “2005 Audit Platinum Award” for food safety at its
Hiram, Ohio headquarters facility. As a top 10 North American
food plant, the Hiram site earned a near-perfect 99.1 per cent
in Silliker GMP (Good Manufacturing Practices) Food Safety
audits.
“When Great Lakes Cheese opened the Hiram plant about
a decade ago, the goal was to make its safety, capacity, and
productivity state-of-the-art,” says Dave Ortego, the plant’s
maintenance manager.
Previously, manually lifting, flipping, and shaking about
250-lbs. blocks of cheese from wooden boxes required pairs of
workers, who had to be rotated frequently because the work was
26 Canadian Meat Business September/October 2009
meatbusiness.ca
so strenuous.
Another
labour-intensive
process
required lifting and positioning nearly
700-lbs. blocks of cheese with a chain
hoist, readying the cheese for cutting
equipment.
“The old processes were too slow,
strenuous and imprecise,” says Ortego. “As
we grew, we sought more efficient processes
to meet demand, with less physical ‘wear
and tear’ on employees. But there were no
off-the-shelf products we could buy for the
job.”
For a base unit, Ortego turned to a
pneumatic, lift assistance device made by
AirOlift Lifting Systems, an Akron, Ohiobased builder of ergonomic clamping and
vacuum lifting systems.
To customize the lift equipment to
his operation, Ortego collaborated
with AirOlift’s engineering staff. The
collaboration produced two custom
attachments: a cheese block rotator and a
cheese/box extractor attachment.
Ortego also collaborated with Handling
Concepts, Inc., an Akron-based expert
in ergonomic and material handling
equipment, on integrating a track crane
system and other material handling
equipment with the lift devices.
“Since the lift devices are integrated with
an enclosed track crane system, operators
can pull them where needed by just a
finger,” adds Ortego. “There’s no strain;
the operator can work an entire shift
without rotation. One operator essentially
does the work of three previously, so we’ve
expanded capacity tremendously without
adding staff.”
Because the lift systems are all pneumatic,
operated by a single shop airline, they
eliminate electric hazards such as shock
from frayed wires. They also avoid running
costly, unsanitary electrical connections
in the working area. With fewer moving
parts, there’s nothing to grease, which aids
cleanliness and minimizes maintenance.
Since the lift devices are constructed of
stainless steel and FDA-compliant Delrin
– a high-performance acetal resin made
by DuPont, they can be can be used in
production processes and food-grade wash
down, clean-room environments. The
resin bridges the gap between metals and
plastics with strength, toughness, abrasion
resistance, low wear and low friction.
“The lift systems’ all pneumatic, stainless
steel, Delrin construction is a big plus,”
says Ortego. “This allows us to conduct
daily washdowns, which helps keep our
food safety and quality assurance standards
among the highest in the industry.”
Ortego appreciates safety features built
into the equipment. For instance, if there’s
ever catastrophic air loss, the devices hold
meatbusiness.ca
“One operator essentially
does the work of three
previously, so we’ve
expanded capacity
tremendously without
adding staff.”
– Dave Ortego, Great Lakes Cheese
their loads in place, protecting operators
from dropped loads and eliminating
product damage.
“The lift devices are extremely well
designed and made,” concludes Ortego.
“Not only are they protecting our operators
from injury, but also they’re designed for
direct food contact and made to last. After
hundreds of lifts per shift each day, the
originals are still working fine a decade
later, and we expect them to last at least a
decade more.”
AirOlift Lifting Systems custom
manufactures
product
clamping,
vacuum lifting and manipulating systems,
ergonomically designed to meet or
exceed OSHA and NIOSH mandates or
recommendations. Its lifting solutions
enhance safety and production in a variety
of industries on items ranging from
bags, boxes, parts, panels, rolls, doors
and windows, to clean-room/wash-down
applications.
As an expert in ergonomic and material
handling equipment, Handling Concepts
can provide and integrate the entire
range of ergonomic, material handling
equipment from lift/tilt tables and hoists/
cranes, to conveyors and mezzanine lifts,
to manipulators and ergonomic lifters, to
drum, roll, bin and tote handling.
For more information, visit airolift.com
and handlingconcepts.com.
Del Williams writes technical articles for Power
PR, based in Torrance, California.
September/October 2009 Canadian Meat Business 27
|
Cross Countr y News
|
British Columbia
Ranchers Receive National Recognition for
Environmental Commitment
The Madley family, of the Canyon Ranch in Alexis Creek, B.C.,
received the Environmental Stewardship Award (TESA) from
the Canadian Cattlemen’s Association (CCA) in recognition
for their outstanding commitment to water quality, habitat
restoration, riparian, grass and nutrient management.
Announced at the CCA National Convention, Brooke and
Bev Madley accepted the award on the behalf of the five
generations that have worked, and continue to work at the
Canyon Ranch. Today, the Madley family raises HerefordAngus-cross cattle.
Situated at the confluence of Alexis Creek and the
Chilcotin River, the Canyon Ranch has undergone extensive
environmental modifications. The Madleys created a buffer
zone along the creek, placing barnyard holding pens at a
substantial setback, plus installing extensive fencing and water
troughs. To enable natural restoration of nutrients to the soil,
the family also puts careful thought into rotating their herd
over the winter.
The Canyon Ranch also exemplifies excellent riparian
management on Crown range. The Madleys partnered with
key groups to implement some of these practices. To protect
the Avon Creek on Crown range, they installed a water
crossing with the help of the British Columbia (B.C.) Grazing
Enhancement Fund.
To minimize impact on wetlands, their livestock graze on the
lower wetland range only in late August. They also partnered
with Ducks Unlimited Canada, which is undertaking an
active stewardship project on the Madley’s Crown range. The
family also improved forage quality and increased livestock
production, through extensive range riding to rotate cattle
among the Crown range-management units.
Alberta
Details for Meat Strategy Online
The Alberta agriculture department launched a new website
in August that details its Alberta Livestock and Meat Strategy
(ALMS).
Originally released in June 2008, the implementation plan
outlines key initiatives, milestones and timelines to be achieved
under ALMS for maximum industry impact. ALMS is designed
to create a more profitable and competitive future for all
members of the livestock and meat industry.
“This new implementation plan serves as a framework,
which will remain flexible in order to solve challenges and
take advantage of opportunities as they emerge,” George
Groeneveld, Minister of Agriculture and Rural Development,
said in a release. “Together, industry and government have
already accomplished much under ALMS. We must continue
to work together under this framework to meet our common
goal of a profitable and competitive future.”
The revisions better reflect the collaborative nature of ALMS
and adjust some milestone target dates based on industry
feedback. ALMS is a partnership among Alberta Agriculture
and Rural Development (ARD), Agriculture Financial Services
Cooperation (AFSC), Alberta Livestock and Meat Agency
(ALMA) and industry. All partners played a role in developing
the strategy and implementation plan. Their roles continue
to be vital in implementing initiatives and achieving the goals
identified in the strategy.
One of the initiatives identified in ALMS, the Cattle Price
Insurance Program (CPIP), has already been developed by
AFSC and will be available to producers in late summer. This
program is the first of its kind in Canada.
For more information, visit alms.alberta.ca.
Ontario
Project to Boost Sustainable Performance of
Food Processing Sector
Ontario-based food and beverage manufacturers have a
new resource to support them in their efforts to improve longterm sustainability, with a project announced today by Food &
Consumer Products of Canada (FCPC), Guelph Food Technology
Centre (GFTC) and the Ontario Centre for Environmental
Technology Advancement (OCETA).
The project, entitled “Raising the Bar for Sustainability
Performance in Ontario’s Food and Beverage Processing Sector”
will produce a sustainability framework and tools to assist the food
and beverage processing sector, in particular small and mediumsized (SME) companies, with integrating environmentally
sustainable business practices.
28 Canadian Meat Business September/October 2009
meatbusiness.ca
The project will be implemented in several phases over three years:
• Phase 1 will benchmark the superior sustainable performance
of leading global companies in the food and beverage sector
and develop a comprehensive and customized “how to”
framework to guide SME food and beverage processors
with integrating sustainability aspects into their business
operations.
• Phase 2 will involve the actual pilot testing of the framework
and tools developed in Phase 1, with SME food and beverage
companies in Ontario.
• Phase 3 will transfer the pilot program platform across the
entire food and beverage sector in Ontario.
The core funding for Phase 1 of this project is supported in
part through the Food and Beverage Industry Innovation Fund
(FBIIF) by Agriculture and Agri-Food Canada's Advancing
Canadian Agriculture and Agri-Food Program and the Ontario
Ministry of Agriculture, Food and Rural Affairs through the
Alliance of Ontario Food Processors. The Agricultural Adaptation
Council administers the FBIIF. The fund has been established to
encourage investment into new, innovative processes, products,
and skills development. Other organizations providing funding
support and resources for the project include the Ontario Power
Authority (OPA) through the Conservation Fund and the City
of Toronto, Economic Development, Culture and Tourism
Department.
The project will result in the development of a first-ever
sustainability framework and customized tools targeted to
Ontario’s small and medium-sized food and beverage companies.
Major products will include:
• An understanding of the current state and capacity of
Ontario’s small and medium-sized food and beverage
processing companies in implementing environmentally
sustainable business practices.
• A sustainability performance self-assessment tool.
• A list of superior sustainability performance benchmarks
(based on performance of global industry leaders).
• A sustainability implementation framework.
• The development of a Food and Beverage Industry
Sustainability Leadership Program.
New Brunswick
Olymel-Westco Go Ahead With
Slaughterhouse Plans
Sunnymel – a new company formed by a partnership
between Olymel L.P. and Groupe Westco Inc. – plans to
construct a new slaughterhouse in Clair, in northern New
Brunswick.
The company announced the plans after several attempts
to purchase another slaughterhouse in the area owned by
Nadeau Maple Lodge.
Westco’s poultry production was transferred to Olymel
slaughterhouses in Quebec – which, according to media
reports, led to the loss of 175 jobs at the Nadeau plant. Once
construction of the slaughterhouse is completed, Westco
production will again be slaughtered in New Brunswick,
according to a press release issued by the partnership.
Sunnymel signed a recognition agreement with the Local
1288 of United Food and Commercial Workers for the union
to be the sole wage bargaining agent for the coming poultry
slaughtering, processing and distribution plant.
meatbusiness.ca
September/October 2009 Canadian Meat Business 29
Faith
in the Market
Opportunities in the growing halal meat sector.
By M. Eshan Sairally
T
he Canadian meat market
is a dynamic and exciting
industry in which consumer
preferences are changing allowing new
opportunities to arise. What used to
be a producer driven market has now
changed to a market driven one. With
the world becoming a global village,
Canadians are increasingly exposed to
different cultures, and are becoming
more adventurous and open to trying
new foods. Thanks to the growing
diverse population of Canada, there
are consumer food preferences, beliefs
and lifestyles that present a growing
opportunity in the meat industry.
Demographics
Since the Canadian census collects
data on religious affiliation, a lot of
official information is available in halal
consumer demographics, market size
and geography. For example, Canada’s
Muslim (halal consumer) population
is approaching one million, which
is a significant defined market that
is estimated to be $1 billion. Major
concentrations of halal consumers are
in metropolitan areas such as Toronto,
Montreal, Vancouver, Ottawa, Calgary
and Edmonton. The Toronto area is
a major growth market, and will soon
have approximately 10 per cent halal
consumers.
Statistics indicate that within the
next two decades approximately 30 per
cent of the world’s population will be
halal consumers. Canadian halal meat
products are fast gaining worldwide
recognition as a benchmark for quality
and lifestyle choice as they are accepted
by Muslim and non-Muslim consumers.
Conceptualizing halal
products
Canadian halal consumers come from
various ethnic backgrounds, but they
have common faith-based dietary needs
and hence consumer needs are clearly
defined and have been so for over 1,400
years. Halal is an Arabic term denoting
what is “permitted” according to Islamic
faith. It is a religion-based diet stipulating
purity of contents, inputs and process.
Most animal products are permitted
with the exclusion of pork and pork
Halal consumers are
involved food purchasers
and need assurance that
the foods they buy will fulfil
their faith-based dietary
requirements.
derived products. For those permitted
animal species (beef, chicken, mutton,
goat, etc.) there is a prescribed animal
handling and slaughtering protocol,
which is based on concerns for animal
welfare. The same requirements apply
to food additives. Some additives may
have pork derivatives or may be derived
from permitted animal species that
were not slaughtered according to halal
protocol and are not permitted.
Industrial implications
A science based certification agency
such as Halal Product Development
Service (HPDS) has experience with the
meat industry and can assist a company
to either make an existing product halal
compliant or to develop a new halal
product. Companies may already have
a halal production mindset but don’t
realize it. Producing a halal product is
essentially the same as producing an
allergen free product. Once a halal
product has been formulated and
processed, various check point controls
are required to ensure there is no comingling with non-halal products.
30 Canadian Meat Business September/October 2009
The following three points should
help allay concerns some mainstream
Canadian companies may have:
• A dedicated plant or line is not
necessarily required to produce
a halal product. With proper
checkpoints, GMPs and HACCP type
protocols in place, halal processing
can be accommodated in an existing
plant where other product types are
processed.
• Industrial halal food processing
completely fits into the Canadian
food regulatory framework. There is
nothing different about halal meat
products or how they are processed
other than the exclusion of certain
ingredients as well as co-mingling
control.
• A halal certified meat product can
be the same formulated one that
the company is already producing
for the general market, but now
the product will be reaching the
lucrative halal market as well.
A certification agency such as HPDS,
made up of food professionals, can assist
companies entering the Canadian and
worldwide halal market through the
following means:
• Formulation development (a key
starting point)
• Processing, production line changeover and scheduling
• Equipment and line sanitation
• QC, GMP and HACCP type
protocols
• Staff awareness and training
• Regulatory compliance
• Certification labelling
• Logistics
• Consumer and market information,
including exporting opportunities
Halal consumers are involved food
purchasers and need assurance that the
foods they buy will fulfil their faith-based
dietary requirements. Certification
labelling gives that assurance and
provides industry with access to a
growing halal market.
M. Eshan Sairally is the president of the
Halal Product Development Service (HPDS).
For more information, contact him at
[email protected].
meatbusiness.ca
Get your Business
Ready for the Upswing
An economic turnaround is coming, but there will still be challenges for business owners.
By David Filice
F
or business owners the current economic climate has
likely felt like riding a rollercoaster. For many in the
food industry, the implications of a slowdown in Canada
and the U.S. have been severe. When lenders were awash in
surplus liquidity, struggling organizations often received lifelines
that pulled them back from the brink of failure. But, in today’s
economic environment, the refinancing and restructuring of
companies has become more challenging as there is less available
credit.
While we may be seeing the light at the end of the tunnel, it’s
likely that we will have to face a few more obstacles before we get
to the end. The following are some practical steps you can take to
help you land in a better position at the end of the ride.
Analyze your cash flow
Cash is the lifeblood of any business and matters more than
earnings. To analyze your cash flow:
• Focus on working capital and the cash conversion cycle. Build
and conserve cash, and possibly even draw down on interest
bearing credit facilities while you still have the opportunity.
• Forecast near-term cash receipts and cash disbursements
based on realistic financial projections. Keep in mind
customers are likely to pay their bills more slowly.
• Reduce inventory levels and replenish on a just-in-time basis.
Sell your slow moving inventory at a discount to convert
working capital to cash.
• Liquidate other non-redundant assets to free up cash.
• Assess new business opportunities in the context of cash
requirements and infrastructure build-out costs. If the cash
flow of the company is not strong, this will only cause more
problems for you in your cash conversion cycle.
Stay close to your banker
If you have a good working relationship with your lender, you
may be in a better position to renegotiate your current loan
facilities. Treat your banker as a partner in the business, and
keep them informed of critical issues affecting the business and
the industry. Provide your banker with your plan on how you
intend to combat the economic challenges and give them plenty
of notice if you need their help. Banks will tend to stay with a
client when their financial plan is realistic.
Slash costs where possible
Tough economic conditions with falling sales volumes require
cost cutting measures wherever possible. Consider:
• Reducing spending – talk directly to floor and office
employees to see if there are any items that can easily be cut
without affecting the sales levels of the company.
• Deferring capital expenditures in order to conserve cash.
• Making tough decisions about payroll costs.
Be careful not to automatically cut marketing type expenses, as
this will affect your sales levels and could impact your competitive
position, particularly when things start to pick-up again.
Concentrate on good customers and suppliers
A careful review of your customer base is critical when
developing a financial forecast. If customers are becoming
increasingly slow in paying their accounts this may be a red
flag. It’s prudent to drop some customers during this period of
economic turmoil and sacrifice sales levels, rather than selling
them products or services that you may never get paid for.
Bargain for favourable credit terms with your suppliers, and if
possible, negotiate for early payment discounts as most suppliers
will be hungry for cash. Consider whether you can slim down the
number of suppliers you are currently using so that you may be
able to get larger volume discounts with existing suppliers.
While the recession has likely been hard on your business, the
above tips should help you to ensure that when the economy
does emerge from under this dark cloud, that you and your
business will be in an even better position. If you are concerned
about the viability of your business, remember that the earlier
you seek help, the greater are your chances of success.
David Filice is a vice president in the Restructuring and Insolvency
Practice of Fuller Landau LLP, Chartered Accountants and Business
Advisors. Contact David at [email protected].
32 Canadian Meat Business September/October 2009
meatbusiness.ca
e v e n t s calendar
March 2010
April 2010
7-9
CRFA Show
Toronto, Ont.
crfa.ca/tradeshows
18 - 19
ApEx
Halifax, N.S.
crfa.ca/tradeshows
9 - 21
NAMP Meat Industry
Management Conference
The Drake Hotel
Chicago, Illinois
namp.com
21 - 23
SIAL Canada
Montreal, Que.
sialcanada.com
29 - 30
BC Foodservice Expo
Vancouver, B.C.
crfa.ca/tradeshows
May 2010
8 - 13
IFFA 2010
Frankfurt, Germany
iffa.com
Thefoodnewz is an on line events calendar created by Debra Bradshaw of Zep Food
& Beverage Division. To find out more about the events listed in this magazine visit
thefoodnewz.com. If you know of events not listed please email Debra directly at
[email protected].
DO NOT
MISS OUT ON THIS
ONCE-A-YEAR
OPPORTUNITY!
meatbusiness.ca
September/October 2009 Canadian Meat Business 33
|
Business Spotlight
|
We can help you develop a range
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meatbusiness.ca
September/October 2009 Canadian Meat Business 35
|
Product Showcase
|
New
MAINCA MG-90 HYBRID
• All in one machine
• Two loading positions
• Bowl capacity 90 liters
(up to 60 Kg./132 Lbs.)
• Mincing head
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• Single or three phase
motors
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201 DON PARK ROAD, UNIT 1, MARKHAM, ONTARIO L3R 1C2
Phone: 905-470-1136 Fax: 905-470-8417
E-mail: [email protected]
36 Canadian Meat Business September/October 2009
meatbusiness.ca
|
Product Showcase
|
STAINLESS STEEL TRUCKS / RACKS
Let Beacon customize
one of our standard Truck
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100 S. Mannheim Road, Hillside, IL 60162
Phone (708) 544-9900 Fax (708) 544-9999
beaconmetals.com
Graphic Design I Marketing I Publishing
Writing / Editing Services I Public / Media Relations
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meatbusiness.ca
September/October 2009 Canadian Meat Business 37
|
Meat Industr y Business Watch
|
Group Savings
The benefits of group savings plans for businesses and employees.
By James Sbrolla
I
n the last issue, this column looked
at the benefits of retirement
savings plans (RSPs). Some
readers wondered why this was covered
and thought this seemed odd for our
magazine. The topic was covered to lay
the groundwork for this article, which
should be of great interest for our small
to medium sized businesses that make
up the meat sector.
Many employers want to help
employees save for retirement and
are under the misconception that
they are too small to offer a group
benefit to their employees. Group
RSPs (GRSPs) provide a mechanism
to do just that, often at no cost to the
company, and they can be done with as
few as 10 employees. A GRSP is simply a
collection
of
individual
RSPs
administered on a group basis. Some
GRSPs are offered to members of
associations, or unions, but most often
it is an employer who sets up a GRSP.
There are several benefits to
the employee; tax savings, regular
contributions, cost savings and access
to unique services often not available
to smaller investors.
As contributions to the GSRP are
sent directly to the employee’s (or
the spouse’s) RSP, no source tax is
required to be withheld. So by using
pre-tax dollars, more can be directed
than if using after-tax dollars from
a bank account. The net tax effect at
year-end is the same as in an individual
RSP, but instead the employee has had
the use of their RSP refund for the full
year, rather than sending tax money to
Ottawa, and then waiting for a refund.
Since the money comes off each
paycheque regularly, GRSPs are a
forced savings that can accumulate
more quickly. Out of sight and out of
mind, as the saying goes. Of course the
plan is flexible, employees can increase
or decrease, start or stop their amounts
as often as their payroll processor
allows them.
Since employees are part of a group,
they can see fee savings, varying from
lower administration fees, lower
investment management fees or
premium deposit rates. Depending on
the size of the group, these savings can
be significant over what a retail investor
would receive.
And many GRSP plans offer access
to a wider range of investments, or
investment managers, some of whom
are only available to large institutions.
Many group plans offer access to
enhanced retirement planning tools or
professional advisors.
So why would an employer offer a
GRSP? Well for one, payroll deduction
into a GRSP can generally be offered
GRSPs remain the
easiest kind of plan for
employers to offer and
maintain. Employees
also understand and trust
RSPs much more than
other kinds of plans…
as a benefit, and has no direct cost.
However, many employers use the
group plan as way to allow employees
to shelter bonuses, or even set up a
matching formula.
For the employer, there are other
options to help employees save for
retirement, including several capital
accumulation plans (CAP). The
latest Benefits Canada 2008 Capital
Accumulation Plan Report, notes there
are over 29,000 GRSP plans, in Canada,
with over two million members. The
next largest kind of plan – DC pension
– only has 13,000 plans and 1.5 million
members. GRSPs remain the easiest
kind of plan for employers to offer and
maintain. Employees also understand
and trust RSPs much more than other
38 Canadian Meat Business September/October 2009
kinds of plans – and they appreciate
that their contributions are not “locked
in” like in a pension plan.
There are a number of options of
GRSP suppliers in Canada. Most of
the large insurance companies offer
GRSPs, and they have the majority of
the market. Some major brokerage
firms offer GRSPs, as do a few mutual
fund companies. However, Fidelity
recently exited the GRSP marketplace
in Canada.
According to Carl Spiess, director
of wealth management and senior
wealth advisor at ScotiaMcLeod (the
largest brokerage firm offering GRSPs
in Canada), companies are looking
more to firms that can provide advice
to members.
“With the ongoing volatility in the
markets, employers want to be able to
able to direct employees to a dedicated
and experienced advisor, not just to a
1-800 number into a call centre where
they will reach a different clerk each
time they call,” said Spiess.
Current trends in the GRSP
marketplace are toward auto enrolment,
where employees automatically have
a GRSP set up if an employer decides
to make contributions to their plan.
Also, target date (or life cycle funds)
are becoming a popular investment
option. In these funds, the investment
mix becomes more conservative as the
employee moves closer to retirement.
Canadians are becoming more
concerned about retirement, as the
boomers move approach age 65.
GRSPs are a significant, cost effective
and flexible tool an employer can
use to help employees save for
their retirement.
James Sbrolla is a Toronto based management consultant
and can be reached at
416.234.5120
or [email protected].
meatbusiness.ca
201 Don Park Road Unit 1, Markham, Ontario, L3R 1C2
Phone: 905-470-1135 1-800-465-3536 Fax: 905-470-8417
Website: www.yesgroup.ca email: [email protected]
Remco and The Yes Group
Protecting your Customers
Remco products are colour-coded to help
divide the production cycle into different zones.
By identifying these zones as different cleaning
areas, the movement of bacteria around the
production area can be blocked.
Our products were developed with
the Hazard Analysis Critical
Control Point (HACCP) in mind.
No matter what colour-coding plan is
implemented, Remco Products from The Yes
Group provides significant added value at no
additional cost. From scoops to squeegees, from
brushes to shovels, we have the products and
the colours to enhance any professional quality
assurance program.