Fall Edition 2014 - Growing Forward 2
Transcription
Fall Edition 2014 - Growing Forward 2
Business tools,information informationand andideas ideastotomeet meetchanging changing market consumer demands Business tools, market andand consumer demands How Alberta Producers and Processors are Changing the Game It’s an exciting time to be in the agriculture industry in Alberta. Farmers, ranchers and agribusiness see new markets available, at home and around the world. Technology is changing, too, putting ever-more efficient tools at the service of productivity, quality and safety. How are producers and processors responding? Many are positioning themselves to meet new market opportunities. Farms and agribusinesses are adapting what they do and how they do it. They’re investing in new technology, equipment and processes to boost their production and management capacity. They’re looking forward to new market opportunities and listening closely to what consumers want today and in the future. The theme of this issue, Building Capacity Adapting for the Future is one of three priority areas under Growing Forward 2, a federalprovincial-territorial initiative. Programs and initiatives in this area aim to enhance industry competiveness by supporting the adoption of best management practices, developing innovative business solutions, enabling market growth and new market opportunities. Many of the producers and processors featured in this edition of Agri-Business Forward participated in Growing Forward 2 2014 FallFALL 2013 Inside this Issue Minister’s Column 2 What’s New for AgriInvest 2 Old-time Butcher, High-tech System 3 Free of Allergens, Packed with Potential 4 The System Behind the Taste 5 When Communication Goes with the Territory 6 programs. This issue is dedicated to telling Collaboration at its Best 7 the stories of people that are taking action Building Farm Capacity, One Project at a Time 8 to strengthen and grow their business. Birds, Bees and Trees Unlock While their stories are different, all saw Farm Transformation 9 a market need or opportunity, prepared for Preparing for the Crops of Tomorrow 10 it through planning and investment, and Family Meat Business Charts moved forward. Here are some of the Alberta Bold New Direction 11 businesses you’ll meet: Meat Shop Keeps it Simple, Healthy and Safe 11 ÎÎ a pork producer making the challenging Business tools, from information andmarket ideas totomeet changing market and consumer demands Fall 2013 transition farmers’ supermarket ÎÎ a seed grower who’s planning today for crops his customers will grow tomorrow ÎÎ a beef producer who moved closer to the consumer with a unique meat product ÎÎ a chef who’s bringing innovation and simplicity to the frozen foods category ÎÎ producers who are embracing the chance to meet with consumers face-to-face. Markets are changing. Consumers want more. In this dynamic environment, Alberta producers and processors are looking for new market opportunities and paying close attention to consumer demands. n BUILDING CAPACITY. ADAPTING FOR THE FUTURE. Minister’s Column Growing Forward 2 programs encourage adaptability and build capacity A key focus of my mandate as Minister of Agriculture and Rural Development is to encourage industry innovation to meet the demands of international and domestic consumers. The ability to identify new opportunities and adapt is at the heart of our agriculture sector’s ongoing success in the highly competitive global marketplace Alberta’s producers and agri-food businesses are adapting all the time - just take a stroll down the grocery aisle or through a farmers’ market and you’ll see an array of new products. Alberta’s agricultural firms and farms know they need to appeal to local, national and international palettes. Adapting, changing and producing new products – or putting new twists on existing ones – takes innovation and capital. Building capacity often requires additional financial investments, which are essential for producers to increase their market-based profitability. Building capacity also requires producers to learn new things and expand their knowledge base. That’s why Growing Forward 2’s (GF2) programs, funded under the cost-shared provincial-federal agreement, are so vital to the continued growth and evolution of our agriculture industry. These strategic programs provide important tools and resources for our agriculture entrepreneurs seeking to strengthen their businesses. Today’s successful producer has to have strong business acumen. You can’t just grow, raise or create goods – ultimately they have to get to market. That requires businesses assessments and plans. If you have a successful business, you need to embrace and manage change. That may mean implementing a new process or improving an existing one. Part of being adaptable is ensuring Alberta’s producers can develop or improve their infrastructures and systems to address challenges and take advantage of new market opportunities. A bigger market share often requires a bigger production space. Medicine Hat’s Greg Pahl knows a thing or two about adapting. When the BSE crisis hit, the third-generation cattle producer became a first-generation butcher whose beef jerky became a hit. His facility was at capacity until last year when he used GF2 funding to invest in a new smoke house so he could double his production. Calgary’s Copper Pot Creations started making products in 2003 that were initially for a niche market – frozen entrees free of common allergens including gluten, soy, dairy and nuts. Fast forward a decade and that niche market is now mainstream. Thanks again in part to GF2 funding; Copper Pot Creations recently signed an agreement with food service leader Sysco to provide meals to work camps in the Fort McMurray region. Killam-area’s Don Ruzicka has spent decades transforming his farm into a haven for birds and bees, which has made him something of an expert in native pollinators. He shared his knowledge and experience with close to 40 farmers, agronomists and researchers this past summer during a tour which was partly supported by GF2 funding. The stories of these producers, and many others, are in this edition of AgriBusiness Forward and I know you’ll enjoy reading them. I think they are a testament to the effectiveness of GF2 programs and show that adapting and growing capacity are key ingredients in being successful. I encourage you to check the Growing Forward website frequently for new programs that will help you adapt and build capacity. n Verlyn Olson, Q.C. Minister of Agriculture and Rural Development What’s New for AgriInvest A number of changes came into effect for the 2013 program year with the new Growing Forward 2 agreement. Producers can now contribute up to 100% of their Allowable Net Sales (ANS) to a maximum of $15,000 once per year, with the first 1% matched by governments. The account balance limit has also increased, allowing producers to hold up to 400% of average ANS in their account so that they can better use AgriInvest as a risk management tool. AgriInvest helps cover income declines and supports investments that help mitigate risks. To learn more, go to the AgriInvest website at www.agr.gc.ca/agriinvest. Get Online Access to your AgriInvest Account ‘My AAFC Account’ provides convenient and secure access to your AgriInvest account PAGE 2 Agri-Business Forward information online. With online access, you can check AgriInvest account transactions, track the status of an application, view current and prior year statements, and communicate securely one-on-one with the AgriInvest administration. For more information and to sign up for a My AAFC Account, go to www.agr.gc. ca/myaccount. n Prepared by: Renée Robert Manager, Business Risk Management (BRM) Communications and Consultations Branch Agriculture and Agri-Food Canada Tel. (204) 259-5804 [email protected] Old-time Butcher, High-tech System The Spragg family raises up to 2,500 market hogs annually, a volume that should increase with a new listing with Calgary Co-op. Ever wondered what it would be like to sell your farm-grown products directly to consumers at a farmers’ market? Pork producer Bonnie Spragg has been selling free-range pork and other products through farmers’ markets for almost 10 years. She’ll tell you that, initially, the experience was quite a bit different than she expected. “I thought at the beginning that we’d have to do a lot more convincing in order to sell the product,” says Spragg, who owns and operates Spragg’s Meat Shop with husband Greg in Rosemary, Alberta. “It really almost sold itself. That’s why we just kept going.” Under the right circumstance, a desirable product may practically sell itself. Under no circumstance does that product make itself. The Spraggs have developed an efficient, modern system for processing and packaging their pasture-raised, naturally fed pork and other meat products. This approach has made them a trusted presence at farmers’ markets in Calgary, Brooks and Millarville and, with 16 staff, the largest employer in the village of Rosemary, too. Quality starts on the farm As Spragg sees it, the reason no heavy selling is needed at farmers’ markets is that consumers get it. They quickly identify with the Spraggs’ approach to pork production. The Spraggs raise up to 2,500 market hogs annually, free-ranging up to 1,000 at any one time on pastures of annual grass. The pigs are kept antibiotic free and fed plants only. “People like to know these are happy pigs,” says Spragg, “right from the farm to them. When they see our products at the farmers’ market, in many cases, those pigs were on pasture three days ago.” Investments in traceability and production capacity are positioning this producer and processor for significant growth ahead. Consumers may see in Spragg’s Meat Shop a bastion of Alberta’s traditional farming values. Today, however, running a successful meat business requires modern systems for maintaining production efficiency, quality and food safety. Over the past two years, this has been a focus of the Spraggs’ involvement with Growing Forward 2 initiative. “In terms of traceability, we’re implementing a total compliance system known as BioLink,” says Spragg. “Every package of meat gets a barcode that leads back to the pig. If there’s ever a product recall, we know which batch of pigs it came from.” This system includes software, originally developed by Alberta Agriculture and Rural Development, along with equipment to read and print the barcodes. Along with the traceability system and software, Growing Forward 2 assisted Spragg’s Meat Shop with the cost of a new scale system and other production equipment. This will allow the shop to increase its production volume, and just in time. From farmers’ market to supermarket In August 2014, Spraggs Meat Shop started delivering its products to Calgary Co-op. With 24 food stores and more than $1 billion in annual sales, Co-op seems like a big step up compared to the business’s farmers’ market roots. Bonnie Spragg calls this new venture a huge unknown, but she doesn’t sound all that worried about it. When Spragg’s Meat Shop saw the opportunity to sell through Calgary Co-op, building the capacity to deliver was a project more than a year in the making. For one thing, as Bonnie Spragg explains, they needed more pigs. Spragg’s Meat Shop is now the largest employer in Rosemary, Alta. “We started ramping up hog production so that we had the extra pigs available on a weekly basis,” says Spragg. “We had to increase by 20 to 25 pigs a week five months ago, with no guarantee we would be able to sell them.” Playing in the big leagues demands worldclass packaging. Spragg needed to ensure a nine-day shelf life for fresh products, with packaging durable enough that it could be handled multiple times during distribution and in-store by customers. This part actually preceded the additional pigs. “We put cardboard cases into the production system a year ago so that we could send out orders through more complex distribution and palletized systems,” says Spragg. “We also added shrink tunnel packaging to increase the durability of each package compared to simply cryovac packaging.” She notes these packaging improvements were made with a grant from Alberta Livestock and Meat Agency (ALMA). Over the past two years, Spragg’s Meat Shop implemented a BioLink traceability system into their operations. All cases produced are tracked through this system. The shop can now trace products and package dates in the event of a food recall. The new systems, and increased production, put a lot on the shoulders of the company’s staff. Bonnie Spragg is pleased that everything’s on track. She says: “It will likely take six to eight weeks of production before all the staff are trained to the point where we are confident all the packages are going out with the consistency and ‘look’ that we want for our pork.” “When we started in 2005, we had a goal and we met that,” says Spragg. “Every year, it just seemed completely feasible to take the next step, whatever that was. We’re confident that we know how to do this.” For more information on Spragg’s Meat Shop, visit www.spraggsmeatshop.com, drop by the Brooks Farmers’ Market, the Millarville Farmers’ Market or the Calgary, Kingsland or Symons Valley Ranch markets. n After a decade selling through farmers’ markets, the business is now expanding its urban retail presence. www.growingforward.alberta.ca PAGE 3 Free of Allergens, Packed with Potential This Calgary company serves a robust market for foods that are free of common allergens. By expanding their food safety capacity, they can grow as fast as the opportunity. What do you do when circumstance forces a sharp turn in your career path? If you’re chef Chris Niddrie, you find new fields to conquer. At age 27, Niddrie was a rising star on the Canadian culinary scene. Then, a diagnosis of celiac disease meant that a restaurant kitchen was not the place to be spending his days and nights. In 2003, Niddrie chose to direct his culinary skills in a bold new direction. He and wife Crystal founded Copper Pot Creations. This Calgary-based company makes healthy and delicious meals that are free of many common allergens—such as gluten, soy, dairy and nuts. As Crystal Niddrie explains, the company’s first product line included frozen entrees such as Spaghetti Bolognese, Shepherd’s Pie and Bombay Chicken. These are available at SaveOn-Foods and Calgary Co-op, among others. More recently, to meet growing demand, Copper Pot Creations has developed a new line of five Veggie Bowls. “Unlike most frozen entrees, it’s very important to us that we use only real ingredients and no preservatives,” says food allergens. most common sly free of the meals ~ deliciou Chef inspired Niddrie. “When the ingredient list says potatoes, for example, we boil and mash them and that’s it.” The allergen-free food market has been growing briskly in recent years, but Copper Pot Creations is cleverly moving beyond that. The company recently signed an agreement with food service leader Sysco to provide meals to work camps in the Fort McMurray area. The thinking is, if the meals are tasty, nutritious and allergen-free, anyone can enjoy them and a company avoids the cost of stocking allergen-free product separately. “This is one reason our business has increased quite a bit over the past few months,” says Niddrie. Capital and non-capital improvements Right now, market conditions are receptive to Copper Pot Creations’ products, and the Niddries plan to keep it that way. Over the past two years, the company has participated in the Growing Forward 2 Food Safety Systems Processor Program. “It’s quite critical that our facility has a good allergen control program,” says Niddrie. “We wanted to enhance our procedures, policies and practices. As we looked at some Gluten Free Dairy Free food allergens. most common sly free of the meals ~ deliciou Chef inspired Gluten Free Dairy Free 61*+)%!& !&+'%2))* ) %')+ & 0&!&+%$*+ +1 1!+ $!!** !+ $+!+1*+'&'& )!&!&'* (**!'&9*''&)$!3 '1!/ )0,0*9'+ )1 ()* & !&+* &)2 $!&) +''&,&/%2/$! &&"'29 )&:+/$$'),! + +&)$20)2'& +*+)+&1 *')%+'+6 )+$!!'/*%$* 1)!&*(!)+' ,& $+ 26)+ %21!6)2*+$61 )0&+2'/)'% &:+( '/$ * & '$) %'*+'%%'&'' ''$$)2')!&+ &+')'+ !* $!0+ + 0!& !+'/)#!+ !&)* )*?*( 0 $/ +*!& 61 !& *'& !*) )$6&+/)$!&) /* +*,&''9')+ '&$2 61 )'+),'&* &+ $'9 )'/ )'% $$)&*9+'(( '/)* 0 $!!'/*%$*1!+ +'%#*!%($2 &+ #!+ &9 +2'/$'09:$$ $(! /*7*(&!+'!&1 '/),%!*()!' 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Today, Chris and wife Crystal (middle) operate Copper Pot Creations and make healthy, tasty, allergen-free entrees like these (bottom). of the bigger grocery chains, we wanted to give customers confidence in our product, and food safety is critical to that.” Cost-sharing with Growing Forward 2 enabled the purchase of equipment for allergen testing as well as freezers and coolers that allow for the strict separation of raw ingredients and final food products. In a second phase, Copper Pot Creations developed and implemented a food safety system based on Hazard Analysis Critical Control Point (HACCP) principles. Crystal Niddrie’s professional background in the International Organization for Standardization (ISO) quality management system was a major asset in this technically demanding process. The future is bright, and allergen-free If you visit copperpotcreations.com, and click on Where To Buy, you’ll see the company’s products are currently available only in Alberta. Not for long, perhaps. The new Veggie Bowls product line has already been introduced to some major grocery chains and distributors. Distribution that would take CopperPot’s products outside Alberta is in the works. Energized by new customers and products, Copper Pot Creations is planning to move to a newer, bigger production facility in 2015. Backed by the company’s enhanced food safety assurance capability, Niddrie sees growth ahead. “In the short term, we’re looking to launch our new product line and expand outside Alberta,” she says. “Longer term, we’re looking at expanding with new products, new distribution and new grocery chains and food service in Western Canada and beyond.” For more information on Copper Pot Creations, its allergen-free line of Albertamade entrees and your nearest retailer, visit copperpotcreations.com. n The System Behind the Taste Safely making and transporting a frozen dessert product is no easy task. This small and growing Lethbridge company is leaving nothing to chance. It’s official: Screamin Brothers is screaming busy, serving an enthusiastic customer base with a popular line of coconut milk-based frozen dessert products. “If anything, it’s been growing faster than we would’ve anticipated,” says Wayne Wikkerink, co-owner of Screamin Brothers. “We’ve been on a steep upward curve since late-Spring.” What’s behind all this growth? An exceptional product, for starters. The company’s lineup of nine frozen treats appeals to those who enjoy great taste and freedom from many common allergens. These include milk, soy, wheat, peanuts and eggs. Wikkerink’s son, J.R., began selling frozen treats in 2010 to raise money for disaster relief in earthquake-stricken Haiti. Wikkerink and wife Anne were in the process of adopting two Haitian boys: one was already safely with the family in Lethbridge, while his brother was living in an orphanage destroyed by the earthquake. The story had a happy ending. Before long, the entire family was united in Lethbridge. Today, 5% of Screamin Brothers’ net profits go to support children’s charities. Commitment to food safety The Screamin Brothers story has attracted a lot of interest from the public and the media. The quality of the products has earned the company a loyal following. Still, as Wikkerink sees it, none of that matters unless retailers and consumers have confidence that the product is safe to eat. “We needed to have a terrific program from the get-go in order to ensure food safety,” he says. Over the past three years, this company has worked with the Growing Forward 2 Food Safety Processor program initiative on several projects designed to help ensure safe food and delighted customers. Projects have included the purchase of freezers, batch processors and fillers - with 20% of the cost coming from Growing Forward 2. Product is verified with allergen test kits to confirm it is indeed free of the relevant allergens. Third-party allergen testing provides further assurance. No matter how capable the equipment, however, it can only perform as well as the people who operate it. That’s why Wikkerink made sure to include a training and education component, developed with a food safety consultant. The consultant returns to the facility on a regular basis to ensure the prescribed protocols are being followed. Screamin Brothers is firmly on the road to achieving full Hazard Analysis Critical Control Point (HACCP) compliance, which Wikkerink considers a key ongoing project. Achieving food safety at the production facility is one thing. As Wikkerink sees it, a further challenge is ensuring that the product maintains its integrity during transportation. Screamin Brothers’ most recent Growing Forward 2 project added equipment to make food-safe transportation easier. “Moving our product at the right temperature is akin to dealing with ice cream,” he says. “Our target temperature for our Brothers Dawson (left) and JR Wikkerink demonstrate the unique taste and quality of Screamin’ Brothers’ frozen desserts. facility is -18C. We then need to move it to Calgary without variation in that temperature, and from there it goes east and west.” To make a food product viable in today’s market, it needs great taste up front and an engaging story behind it. Screamin Brothers has both in abundance. Making it work as a business is just as important. As Wikkerink sees it, a family business like Screamin Brothers needs to be on an equal food safety footing with much larger enterprises. “The insurance industry is raising red flags about small and mid-range companies, and being careful in how they insure food processors,” says Wikkerink. Growing Forward 2 has been invaluable in making sure we know what has to be done to verify the quality and integrity of our product.” n The gluten-free opportunity: how big, for how long? In recent years, there’s been an explosion in the number of gluten-free food products available. Those considering entering this market might be wondering: is it too late? Ava Duering, Competitiveness Analyst with Alberta Agriculture and Rural Development (ARD), believes the gluten-free opportunity still has plenty of room to run. She cites an August 2013 study by Packaged Facts, titled Gluten-Free Foods in Canada, that values the Canadian gluten-free market at $460 million. That’s substantial, but the real story may be gluten-free’s next stage of growth. The market is expected to nearly double, to about $811 million, by 2017. “One of the key drivers for growth is thought to be the evolution from specialty marketers into the mainstream retail grocery,” says Duering, “making it more accessible for consumers.” People with confirmed celiac disease are the core of the market served by gluten-free food products. This number could grow as greater awareness prompts a higher level of celiac diagnosis, bringing with it a kind of multiplier effect. When one person within a family is diagnosed, others within the same family may go gluten-free, out of solidarity or for the sake of simplicity. This phenomenon is helping move gluten-free foods from single-serve meals to multi-person meal offerings. As Duering explains, however, gluten-free products have also been embraced by ‘glutensensitive’ consumers with milder symptoms and people with no celiac issues whatsoever. “There is a market segment who purchase gluten-free simply because they think it is healthier than the traditional counterparts,” she says. Bottom line: for the right product, there’s still time to capture a piece of the gluten-free opportunity. n www.growingforward.alberta.ca PAGE 5 When Communication Goes with the Territory More consumers want to know where their food comes from, and meet the people who grow it. Producers are adapting and enjoying the experience. Armena, Alta. greenhouse operator Doug Lyseng believes that communicating with consumers is now part of a farmer’s job description. Farming 101 Involvement They’re experienced, innovative and bullish on the industry’s future. That’s why Walter Farms’ Ralph Buhler and Maplewood Acres’ Doug Lyseng were asked to host a group of Alberta Agriculture and Rural Development staff recently. Supported by the Ministry of Agriculture and Rural Development, the Farming 101 program allows staff to meet with producers in different agriculture sectors. Generously donating his time, Ralph Buhler represented his partners, showed people around the farm and answered questions. “The best thing about Farming 101 is that people could come out and see a little bit of what we do,” Buhler says. “If they can get a window into what we do and how we do it, they can make better decisions.” Lyseng’s skill as a communicator and ambassador for agriculture made him an ideal host as he welcomed staff from ARD who were seeking an inside view of a successful farm operation. To Lyseng, Farming 101 is just one more way to share what he knows with others. “I think it’s really important that people understand some of the challenges farmers face, things you cannot learn about in a textbook,” he says. “People were just very positive and very eager to learn. I’ll do that any time to help make that connection.” PAGE 6 Agri-Business Forward What’s the most important quality an agricultural producer can have? Agronomic knowledge, technological savvy and attention to detail have long been important, and continue to be. From where Doug Lyseng is sitting, however, today’s farmer must also be an effective communicator. Lyseng, who along with wife Margaret, owns Maplewood Acres Market Garden in Armena, Alberta believes more producers are now called upon to engage with consumers in a direct and personal way. He says, bring it on. “Most of our produce is sold at farmers’ markets such as Old Strathcona in Edmonton,” says Lyseng. “We see a big change in that more people value being able to talk to the owner of the farm that grew the produce. That’s something that’s really changed.” Before Maplewood makes a sale, Lyseng and his staff often field questions from potential buyers. People want to know about production practices on the farm, even asking what type of fertilizer is used. In Lyseng’s view, a younger generation of urban consumers is emerging with its own ideas about locally grown food. These people are keenly aware they know little about farming, but are curious and hungry for information. With Maplewood Acres, they’ve come to the right place. “It’s that 20 to 30-year-old person who’s becoming much more involved,” says Lyseng. “They lack knowledge about agriculture because they haven’t been exposed to it, so they ask a lot of questions about the product, including how to cook it.” A welcoming experience for visitors While many people know Maplewood Acres from farmers’ markets, others make a regular trek out to the farm. Soon to celebrate its 30th anniversary, Maplewood Acres today includes an 8000 square-foot greenhouse and 12 acres of vegetables and herbs. If one visit was largely like the one before, consumers might be tempted to stay home. This is why Lyseng places a high priority on trying out new ideas and offering many types of produce. If you like tomatoes, for example, Maplewood Acres grows 40 different varieties, both modern and heirloom types. Achieving consistent field production depends on many factors that the consumer doesn’t always understand. Even so, people have the expectation that no matter what the weather’s doing, the vegetables they want will be abundant in supply and beautiful in appearance. Behind the scenes, Lyseng and his staff work hard to make this happen. “Every year we run into periods of drought, and so we need to have multiple systems of irrigation ready to go at any time,” he says. In 2013, Lyseng and the Growing Forward 2 initiative shared the cost of a dugout that serves as a primary source of water for crop irrigation. This system helps ensure that water can be collected and retained when it’s plentiful, so that it’s available when conditions turn dry. n Collaboration at its Best In a nifty market adaptation, three Alberta farms pool resources to reduce costs, upgrade equipment and share risk. Neighbour helping neighbour is a common occurrence on Alberta’s farms and ranches. Whether it’s a spare part that’s needed, a hand with repairs or some time-critical fieldwork, people are used to pitching in. The way Ralph Buhler and two neighbours saw it, if this approach works on a small, everyday scale, why not kick it up a notch? In 2001, they combined their equipment and cattle under an innovative corporate structure. Buhler, along with Ed and Ernie Lange and Stan and Chris Walter, now farm 5,000 acres and raise 800 cows annually in a business known as Walter Farms. When it’s time to make decisions, the five partners vote; three votes carry the day. When someone needs time off, the other guys can pick up the slack. Still, economics looms large in this arrangement. “The biggest cost in grain farming is buying machinery, which makes it tough on the farmer who wants to buy bigger and better equipment,” says Buhler, who like the others owns land south of Edmonton. “We figured, if we put our equipment together, we could have two newer combines instead of three older ones.” Do-it-yourself risk management Sharing costs is one potential benefit of producers pooling their resources. Another is the opportunity to manage risk on the revenue side. After all, farms in the same region can often have different rainfall and field conditions. One producer could see his barley go for malt and his wheat go #1, while a neighbour down the road ends up with feed crops. A shared approach may not capture all the highs, but it keeps the lows to a minimum. “Everything goes into a pot, including grain,” says Buhler. “It increases the chance that we all get some #1 wheat.” Cattle, which are also jointly owned, are raised under a natural beef program and sold to a feedlot at roughly 1,000 lb. Some years, both cattle and grain do well. Other times, strong revenue in one helps offset a tough year for the other. With cattle prices strong, Buhler and his partners are enjoying the cattle side of the business right now. He sees robust global demand as people in emerging economies improve their diets. With a young herd that’s been carefully developed, they’re in a position to grow with the opportunity. The business participated in Growing Forward 2 programs such as Livestock Welfare and Food Safety Systems Producer that shared the cost of a new cattle handling system and hydraulic squeeze. This makes handling more efficient, safer for the operator and easier on the animals. With prospects in the beef industry positive, Buhler believes this added efficiency will go a long way. “We don’t know where cattle prices are going to end up,” says Buhler. “The price could start going the other way, but the cattle side may have to subsidize the grain side over the next couple of years.” n www.growingforward.alberta.ca PAGE 7 Building Farm Capacity, One Project at a Time Over the past five years, this farm couple has steadily upgraded their asset base for raising and handling cattle, managing crops and safeguarding water supply. In 2015, the Burkhardt family of Wetaskiwin will celebrate 100 years of farming. While proud of their past, this family is looking confidently into the future. Husband-and-wife partners Kelly and Jill Burkhardt, the fifth generation on the land, are taking a strategic, progressive approach to kicking off the next century on this family’s mixed farming operation. On the cropping side of the operation, the Burkhardts farm just under 1,000 acres of land, with 70% owned and the balance rented. Their 2014 crop lineup included 285 acres of malt barley, 275 acres of canola, 225 acres of wheat, 170 acres of faba beans and 40 acres of oats. The Burkhardts also operate a cattle herd consisting of 80 head of Angus-cross cattle. The cattle are raised using holistic grazing techniques, without added hormones. Antibiotics are only given if the animal is ill or injured. The couple also practices humane animal handling and care. Beef from the herd is direct-marketed at farmers’ markets in the Edmonton area under the Crooked Lake Farm brand. On the Burkhardts’ website at crookedlakefarm.com, consumers can find detailed and transparent production information, recipes and a blog that takes them inside the farm’s day-to-day operations. Since 2009, Jill and Kelly Burkhardt have been upgrading their capacity in terms of animal welfare, food safety, water management, traceability and the efficiency of their field operations. The Burkhardts’ capacity-building priorities have often dovetailed with the provisions of programs available under Growing Forward 2 – a federal-provincial-territorial initiative. Here’s a look at how this farm family has enhanced its capacity with timely infrastructure improvements. The Burkhardts’ new cattle chute makes it more efficient and safer to handle cattle. PAGE 8 Agri-Business Forward Putting the well outside. The main farmhouse on the Burkhardts’ land has a feature that would be considered unusual today. In the mid-1960s, a well was constructed in the basement of the house. While the arrangement is untypical for a farm water system, the Burkhardts lived with it as best they could. That changed in 2009, when the well’s casement collapsed. The Burkhardts worked with Growing Forward on cost-sharing for a project to drill and build a new well out in the yard that would better serve their long term water needs. “Our water quality with the old well actually wasn’t that bad, though the water was higher in sodium than you would like,” says Jill Burkhardt. “The new well goes down quite a bit deeper and we have found there is definitely better water quality.” Chute plus scale means better handling. The Burkhardts are both graduates of Montana State University in the field of Range Management. They have embraced progressive methods of grazing, handling and marketing their cattle. At times, their cattle-handling system made this approach challenging. In 2011, under Growing Forward On-Farm Safety Producer program, the Burkhardts acquired a new cattle chute resulting in improved animal handling and safety. In 2013, under Growing Forward 2, they acquired a weigh scale. These additions improved the efficiency of their cattle handling and has made life a little less stressful for everyone. “Handling animals can be a bit risky,” says Burkhardt. “Our previous system didn’t always work that well, it didn’t squeeze properly or evenly, and wasn’t that friendly for the cattle or for us. With the new one, you set up the opening for the animal, their shoulders push into the bar and they more or less catch themselves and both sides of the chute are engaged. It’s like a big hug.” Apart from the comfort of the animals (and safety of the operators) this cattle chute makes it much faster to process the animals, administer injections as needed and prepare them for transportation to market. Having a weigh scale under the chute has delivered other benefits as well. “If an animal gets sick you can dose them precisely, down to one-tenth of a milligram, because you’re not guessing what they Kelly and Jill Burkhardt have been on a mission to improve the capacity of their farm so they can meet emerging market opportunities. weigh,” says Burkhardt. “We can also weigh them before they go to slaughter. This way, I’ll know their approximate dress weight ahead of time.” Production records: fast, accurate and always available. When Crooked Lake Farms markets its beef at Edmonton-area farmers’ markets, consumers often ask questions about traceability issues. The Burkhardts have answers. In 2013, they took part in the Growing Forward 2 Traceability Pilot Program. The program picked up 30% of the cost of a smart pad, Bluetooth scanning wand and smart phone system. As Burkhardt sees it, this has delivered tremendous benefits in terms of handling efficiency as well as food safety. “You scan an animal’s tag, and you can see any vaccines that it’s had,” she says. “It lets you know the withdrawal period and whether that withdrawal period has passed. This goes on the computer and when it’s time to do a Verified Beef audit, it’s all there. Everything is digital.” Looking ahead, Jill Burkhardt can see several areas where asset upgrades would improve their production efficiency and environmental stewardship even more. She recently applied to the Growing Forward 2 Food Safety Systems Producer Program. She’d like to purchase a calf tipping table—also known as a calf cradle— to more efficiently handle, medicate and freeze-brand their younger animals going on to community pasture. “Another one of the areas we’re looking at is off-site watering for the animals, rather than watering in the corral or a slough,” says Burkhardt. “We’d like to fence off all our sloughs as protected riparian areas. We’d like the cattle operation to be sustainable in terms of its water use.” Over the past century, the Burkhardt family has evolved with a fast-moving agriculture industry. Today, they’re on the leading edge of current developments in areas such as range management, animal care and farm-direct marketing of branded meat products. Based on the pace of change the fifth generation is keeping, the farm’s second century holds a world of promise. “Looking around,” says Jill Burkhardt, “there are definitely some things we’d like to do.” n Don and Marie Ruzicka built an award-winning farm that pastures organic beef and poultry, and natural pork, and offers custom grazing. Birds, Bees and Trees Unlock Farm Transformation How a struggling cropping operation became a thriving grazing operation, with an assist from shelterbelts, wetlands and wild pollinators. To one degree or another, Alberta producers never farm the same way twice. They might change their crop rotation or herd numbers from year to year, build their production base with more land or tackle emerging challenges in the field. Years ago, Don Ruzicka looked at his farming operation and didn’t like what he saw. He decided to change, well, almost everything. “We moved in 1983 to the farm started by my grandfather and grandmother in 1909,” says Ruzicka, who farms with his wife Marie near Killam. “For years, we farmed cattle and grain according to the conventional model. I bulldozed trees and wetlands to get more land but it was never enough. By 1995, I felt the writing was on the wall: an 800-acre farm was not going to be competitive, the way we were doing things.” For Ruzicka, a course in holistic management provided the framework he’d been searching for, and he fundamentally changed his farming operation on several levels. Over the past 20 years, he’s planted 60,000 trees, shrubs and bushes. His 800 acres of annual cropland has become 600 acres of organic alfalfa pasture with 200 acres of native prairie, wetlands and other wildlife habitat. He now pasture-raises organic beef and poultry, and natural pork, and provides custom grazing too. Pollinators kickstart farm productivity Over the years, as Ruzicka planted more and more trees, he gradually noticed profound changes on the farm. Wild pollinators and other insects flourished. Bird populations, and the number of different species, multiplied as their food source grew richer. Ruzicka also erected 240 birdhouses along perimeter fences. Meanwhile, farm productivity increased dramatically, in part due to the activity of native pollinators in the field. This includes not just bees but wasps, butterflies, beetles and hummingbirds. “How many years of grazing do you normally expect to get from pasture? Five or six?” Ruzicka asks. “All of our tame pasture here is 17 years old.” This past July, Ruzicka hosted 37 farmers, agronomists and researchers for a Trees and Bees Field Day, supported in part by Growing Forward 2. He toured visitors through his operation and explored the changes he’d made over the years. Experts in wild pollinators, agroforestry and woodlot management outlined the science behind Ruzicka’s 20-year farm transformation. This event was just one of a steady schedule of research projects and speaking presentations that he now maintains. “We’re learning more and more about native pollinators,” says Ruzicka, “and we’ve tried to make our farm as pollinator-friendly as possible.” As Ruzicka explains, the key for him was to listen to his farm’s natural environment, work to protect and improve that environment and let this renewed resource fuel the sustainability of his business. This approach may not be for everyone, but it’s changed Ruzicka’s farm—and his life. “As farmers, we have to understand how our farm ecology works and work with it, not against it,” he says. “Before 1995, I was working against it. I bulldozed a lot of trees and wetland. I like to think I’ve put all those trees back, just not in the same places. I believe the most valuable practice we as farmers have is to work with nature and support nature.” You can learn more about Don and Marie Ruzicka’s farming journey and current business by visiting their website, www.sunrisefarm.ca.n One farmer’s framework for success Can a mid-sized farm be economically sustainable? That’s the question a soulsearching Alberta farmer asked himself back in 1995. Two decades later, if anything, the pressure to get big or get out has only increased. What’s the best way forward? The pasture-raised hogs at Sunrise Farm enjoy what the Ruzickas call ‘minimum security’ accommodations. www.growingforward.alberta.ca PAGE 9 Preparing for the Crops of Tomorrow Meet a southern Alberta seed grower who’s always adapting his crop mix so that, one day, his customers can do the same. For a crop producer, growing a new crop or a new variety can enhance yields, diversify a rotation and deliver improved returns per acre. When you plant a new crop for the first time, it’s likely that an Alberta seed grower has been working for several years to make this possible. At Specialty Seeds near Bow Island, Alberta, pedigreed seed grower Will Van Roessel is working on new ideas that his customers will eventually benefit from. “In the seed business, you need to be a few years ahead of the curve,” says Van Roessel, who farms mainly under irrigation with his wife Jean. Key seed crops include cereals, hybrid canola, pulses and hemp. “You’re always looking ahead and trying to figure out what crop might be more widely grown in a few years’ time.” Hemp takes root The process of getting new crops and varieties into commercial production is about far more than seed propagation. As Van Roessel explains, before he commits precious time and acres to a new venture, he wants to know whether or not commercial growers will really be interested. Bow Island seed grower Will Van Roessel believes hemp could become a bigger factor in Alberta farmers’ crop rotations. PAGE 10 Agri-Business Forward That takes research. Van Roessel will generally plant side-by-side field-scale comparisons of the new crop (or new variety) and a competitive crop alternative. In 2010, he was approached by a seed grower acquaintance in Saskatchewan about growing hemp seed. Intrigued by the idea, Van Roessel planted 130 acres’ of hemp. In the years since, of course, hemp seeds have become something of a staple of healthy eating. Consumers now commonly sprinkle hemp seed over yogurt, or mix it into their baking. This provides a dietary boost through hemp’s high availability of Omega-3 fatty acids and other nutritional attributes. By 2013, farmers were calling Van Roessel about buying hemp seed and he was ready for them. The trade jumped again in 2014, with up to 20 area farmers growing hemp from seed grown by Van Roessel. Could hybrid fall rye work here? Today, as always, Van Roessel has a new-crop project or two on the drawing board. He is particularly interested in the potential of hybrid fall rye. “This is a new and different crop that will require some on-farm research,” says Van Roessel. “It’s quite common in Europe, but it’s totally new for this area. Traditionally rye is grown on poorer-quality soils. But hybrid rye might fit into the winter wheat market, with potentially less risk of winterkill than wheat and hopefully higher yields and returns.” In case growing multiple seed crops isn’t challenging enough, Van Roessel also deals with the complexities of producing under irrigation. Over the last year, he participated in the Growing Forward 2 Irrigation Efficiency Program. This program shared the cost of Van Roessel’s acquisition of computerized panels that run his sprinkler pivots. The system allows him to run pivots at different speeds in different parts of the field. It’s now easier to shut off individual nozzles in parts of the field that already have enough moisture. The system also provides remote monitoring and control. Rather than driving by each pivot every morning, Van Roessel is alerted by text message as to which individual pivots require attention first. Apart from saving water, this kind of efficiency should free up Van Roessel for more of the forward thinking that goes with the territory for today’s seed grower. “Not every potential variety will be successful,” he says. “But as seed growers, we want to look ahead and have that seed available when it’s needed.” n Family Meat Business Charts Bold New Direction When bovine spongiform encephalopathy (BSE) challenged the Pahl family’s cattle business a decade ago, they decided to move up the value chain. Beef jerky, anyone? Before he was a first-generation butcher, Greg Pahl was a third-generation cattleman. Pahl’s transition from one type of family business to another shows that the ability to adapt is essential in today’s agriculture and food industry. Since 1934, this family has raised and sold beef in the Medicine Hat area. A devastating market development that began in 2003 would take their story in a new direction. “The BSE crisis showed us just how vulnerable we were,” says Pahl. “Until then, we didn’t know that much about what happened after the cattle went to market.” Pahl’s idea was to move a step or two closer to the consumer. After completing the Meat Processing Program at Olds College, he built a small but well-equipped meat shop and opened Medicine Hat Meat Traders in 2006 as a full-service butcher. Most of the family’s cattle-related assets were sold. Jerky product stands out Before long, Medicine Hat Meat Traders was a popular destination for consumers seeking farm-raised beef and pork. In these early years, Pahl couldn’t help but notice that one of his products gradually began to outsell the rest. That was the soon-to-be famous Medicine Hat Meat Traders beef jerky, available at the shop and approximately 10 of Alberta farmers’ markets. “A lot of people tell me that they don’t really like beef jerky,” Pahl says, “but ours is a bit different. It’s a flavored dried beef snack, but with a softer texture. So people who don’t really like beef jerky find they like ours quite a lot.” As the popularity of Pahl’s beef jerky grew, he saw an opportunity to make this product the signature offering of Medicine Hat Meat Traders. His dilemma was, the shop’s smokehouse had reached its maximum capacity. Without additional meat-smoking capacity, it would be hard to address the opportunity Pahl saw in the market. In 2013, Pahl accessed cost-shared funding through the Growing Forward 2 Agri-Processing Automation and Efficiency Livestock program to invest in a new smoke house that allowed Medicine Hat Meat Traders to double its jerky production. For the time being, at least, the consumers’ demand for this one-of-a-kind meat snack can be fulfilled. From farmers’ market to retail Pahl’s son Jackson, followed his father’s path to the Meat Processing Program at Olds College, then took his place as the second generation at Medicine Hat Meat Traders. Jackson Pahl manages production, which frees up the senior partner to focus on management and sales. Medicine Hat Meat Traders founder Greg Pahl (left) and his son Jackson (right) make a beef jerky that even jerky skeptics love. This fall, Medicine Hat Meat Traders will begin a push into retail accounts beyond their farmers’ market presence. Of course, supplying a farmers’ market can be complicated enough. Selling through other retail outlets puts an even greater premium on volume and consistent delivery. Adding the second smokehouse cranked up the production level. In fact, faced with growing market demand, this new smokehouse is also nearing its operational capacity. Rancher-turned-butcher Greg Pahl is excited about what the future will bring. Despite mostly moving out of the cattle business, he’s thrilled to still be running a family business, with the next generation trained, dedicated and ready to grow. Reflecting on his sons decision to join the family business, Greg Pahl says “I was kind of surprised he wanted this, but I sure depend on him. Within the next few years, we’d like to provide our high-quality beef snack to greater numbers of Alberta and Canadian consumers. Production changes and shop growth may be the new normal in the future.” For more information on Medicine Hat Meat Traders’ products and retail markets, visit www.mhmt.ca. n Meat Shop Keeps it Simple, Healthy and Safe In just three years, this Claresholm sausage-maker has moved from start-up to inter-provincial shipper. Hazard Analysis Critical Control Point (HACCP) certification made all the difference. Chantal Blokpoel (right), here with mother and partner Sylvia, are proud of the quality offered by Meadow Creek Sausage and Meat. Meadow Creek Sausage & Meat became a federally registered food processor on September 30, 2013. Shipments outside Alberta, made possible by this designation, started immediately. Meadow Creek Sausage & Meat opened its doors in May 2011. “I had graduated from the University of Lethbridge with a Marketing degree,” says Chantal Blokpoel. “I was working in a bank, but I didn’t like being stuck in an office.” …Continued on page 12 www.growingforward.alberta.ca PAGE 11 More growth on the horizon …Continued from page 11 Blokpoel’s parents, meanwhile, had recently retired and wanted to open a small butcher shop. Her father Peter had worked in the meat industry for decades. He had a vision of making sausages the old-fashioned way: using the best meat, sea salt, spices and that’s it. Blokpoel, with her marketing background, knew the idea had merit. She joined her parents and the business was born. Certification opens border A product of uncompromising quality was the company’s first ingredient for success. Effective, creative marketing was second. The third ingredient? Location. With a shop just off Highway 2, Meadow Creek Sausage & Meat became a popular stop for travelers along the Lethbridge to Edmonton corridor. People from Saskatchewan and British Columbia took their sausages home and asked local retailers to make Meadow Creek sausages available. Until that point, as an Alberta-only meat seller, Meadow Creek was subject to Alberta Health Services regulations. To ship outside Alberta, they’d need federal designation and for that, they’d need to be compliant with HACCP. HACCP is a management system that addresses food safety through analysis and control of biological, chemical and physical hazards in food production. In 2013, Meadow Creek applied to the Growing Forward 2 initiative for cost-sharing to engage a HACCP consultant to develop a comprehensive food safety system for their production facility. “Being able to ship across provincial borders has been important for us, and HACCP made this possible,” says Blokpoel. PUBLISHER Growing Forward Coordination and Program Policy Branch EDITOR Alyssa Maerz WRITER Kieran Brett, Lemongrass Enterprises LAYOUT Diva Communications Inc. For more information on Growing Forward 2 in Alberta, please visit www.growingforward.alberta.ca or call 310-FARM (3276). This report is printed on recycled paper. The Agri-Business Forward is protected by the Copyright Act. All materials in this Publication may be reproduced, in part or in whole and by any means without charge or further permission from Alberta Agriculture and Rural Development. What’s next for Meadow Creek Sausage & Meat? As Blokpoel sees it, there’s no shortage of options. Customers continue to flock to the company’s healthy, tasty, back-to-basics sausage. If warranted by demand, they can open a second production line at their 4,500 square metre production facility. Whatever comes, Blokpoel has no doubt her staff are up for the challenge. “We have a really great team here,” she says, “and without them, we couldn’t do what we do.” Conventionally, sausage is a practical application for less desirable meat cuts – the kind most consumers might hesitate to purchase from the meat case. Meadow Creek Sausage & Meat has changed the game by putting meat quality first and foremost. Their pork sausage is made from leg meat, for example, and their chicken sausage is made with breast meat. Blokpoel aims to bring ranch-to-plate authenticity and innovation to the sausage market. Meadow Creek is now partnering with area ranchers, and expanding the family’s own herd of Texas Longhorns, to create a steady supply of grass-fed beef raised with no hormones and no animal by-products. This is an idea she believes could resonate with food distributors, restaurants and retailers across Canada. “It’s been an amazing journey and we’ve gone far beyond our expectations,” says Blokpoel. “From working at the bank three years ago, this is a whole different ballgame and a huge learning curve. Right now, I just couldn’t imagine doing anything else.” n We ask that: · The materials not be modified. ·Users exercise due diligence in ensuring the accuracy of the materials before the use of the materials. ·The user identify Growing Forward 2, a federal-provincial-territorial initiative as the source of the article or information with the following statement: “The source of the material is the Agri-Business Forward Newsletter. The use of these materials by [insert user’s name] is done without any affiliation with or endorsement by the Government of Alberta. Reliance upon [insert user’s name]’s use of these materials is at the risk of the end user.” Owner Chantal Blokpoel credits her staff for delivering on Meadow Creek’s commitment to quality. Here, team member Kalyna (top) vacuum-seals product packaging, while Miranda (bottom) makes one of Meadow Creek’s dozens of varieties of sausages. of rights. The Government of Alberta does not warrant or make any other representations regarding the use, accuracy, timelines, applicability, performance, security, availability or reliability of this information, or the results from the use of this information, or otherwise respecting the materials in this publication. Under no circumstances, including, but not limited to, negligence shall the Government of Alberta be liable for any direct, indirect, special, punitive, incidental, or consequential damages arising out of the use of, or the inability to use, the publication. 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