Meat&Poultry - August 2011 - 30
CANADIAN UPDATE
doors in August 2010 following labor difficulties. XL Foods continues to own a large plant in Brooks, Alberta, which it purchased in the spring of 2008 from Tyson Foods. • As part of a major re-organization, Maple Leaf Foods Inc. has said it will close its processed meat facility in Surrey, British Columbia, with
“The future for Canada’s red meat industry is uncertain.”
plans to consolidate its manufacturing to fewer, dedicated plants in an effort to reduce supply chain costs and improve efficiencies. It also shut down its pork plant in Berwick, Nova Scotia in April and, late last year sold its pork slaughtering facility in Burlington, Ontario to Fearman’s Pork, an affi liate of Sun Capital Partners. The company’s Burlington plant was the third-largest in Canada. Only the Maple Leaf plant in Brandon, Manitoba and the Olymel plant in Red Deer, Alberta, are larger. • New plant openings have been few and far between. However, a plant that had been previously closed by Worldwide Pork in Moose Jaw, Saskatchewan was renovated by the Donald’s Fine Foods and reopened as Thunder Creek Pork earlier this year. The plant, which received government financial assistance for the refurbishing, is expected to process roughly 300,000 hogs annually.
One man’s vision
The future for Canada’s red-meat industry is unBouma certain. The downsizing that has taken place may stabilize the industry in the short term, but there are other factors, such as the increasingly competitive US dollar and a packing industry south of the border, that has grown into a worldclass powerhouse that appear to be here to stay.
While some in the Canadian industry seem prepared to accept the new reality, there is at least one person who believes that if Canada hopes to remain competitive, it needs to change. He’s Jerry Bouma, strategic planning consultant with 25 years experience in the ag industry including management consultant with Deloitte Touche and marketing manager with Maple Leaf Foods. And he believes the changes should be dramatic. Without change, Canada’s red meat industry is in danger of becoming “A domestic industry and a questionably competitive domestic industry,” he says. Government programs to reduce livestock numbers, he says, are: “A traditional, old-style, economic response. The real question should be ‘Can Canada compete in a more significant way in world markets? Do our major players- Maple Leaf and Olymel -have a demand for product that exceeds what they’re currently able to supply?’ And, the answer, quite frankly is ‘yes.’” He believes the industry needs to move to a “competitive systems” approach. “We have to figure out a way to move toward an integrated system where there’s a shared interest in the fi nal bottom line between producers and processors rather than the trans-
actional arrangement that we have now,” he says. Canada’s beef industry, Bouma adds, is basically a raw materials supplier to the US. “That means all the pricing is reflective of US pricing,” he says. “BSE sent a huge shock through the system and ever since then it has been trying to recover. However, there’s a cloud hanging over the industry in the form of a question: When’s the next border closing going to take place?” he asks. “We need to develop a Canadian strategy and position ourselves as a Canadian supplier with Canadian attributes that are not necessarily just meat quality, but business relationships and supply relationships as well,” he says. “Right now our systems are all North/South. We need to start thinking East/ West and build systems that target Eastern markets, particularly Japan, China and Korea. I just don’t think the way we’re structured right now – and the way we’re positioned – has a very bright future,” he concludes. ■
Leo Quigley is a contributing writer based in Canada. We would like to hear from you – to comment on this story or to request reprints, contact us by email at meatpoultry@sosland.com.
30 • Meat&Poultry • August 2011 • www.MeatPoultry.com
(Photo courtesy of The Beef Information Centre)
http://www.MeatPoultry.com
Meat&Poultry - August 2011
Table of Contents for the Digital Edition of Meat&Poultry - August 2011
Meat&Poultry - August 2011
Contents
Commentary - Forever young?
FSIS proposes label rule for moisture-added products
BPI to test beef for six non-O157 STECs
Japan’s meat sector to buy, burn ‘radioactive’ beef
Allen Family Foods assets go to highest bidder
AgFeed to buy Pine Ridge Farms, Kansas City Sausage Co.
Brasil Foods forced to sell assets, brands
“Enhanced” regulations
Taking flight
Facing a new reality
Riding the wave
Microwave magic
Knowing limitations
Meat Processing Operations & Engineering
‘Dream’ center
Wrapping up convenience
Tools of the trade
Sanitation solutions require the right tools of the trade
Selección de equipo
Turning up the heat
Chico Locker & Sausage Co. earns its stripes
From the Corral - Video auditing goes mainstream
Packaging meets processing
Names in the News
New Product Showcase
Classified Advertising
Advertisers
The Insider
Meat&Poultry - August 2011 - Meat&Poultry - August 2011
Meat&Poultry - August 2011 - 2
Meat&Poultry - August 2011 - 3
Meat&Poultry - August 2011 - Contents
Meat&Poultry - August 2011 - 5
Meat&Poultry - August 2011 - 6
Meat&Poultry - August 2011 - 7
Meat&Poultry - August 2011 - Commentary - Forever young?
Meat&Poultry - August 2011 - 9
Meat&Poultry - August 2011 - FSIS proposes label rule for moisture-added products
Meat&Poultry - August 2011 - BPI to test beef for six non-O157 STECs
Meat&Poultry - August 2011 - Allen Family Foods assets go to highest bidder
Meat&Poultry - August 2011 - 13
Meat&Poultry - August 2011 - Brasil Foods forced to sell assets, brands
Meat&Poultry - August 2011 - 15
Meat&Poultry - August 2011 - “Enhanced” regulations
Meat&Poultry - August 2011 - 17
Meat&Poultry - August 2011 - Taking flight
Meat&Poultry - August 2011 - 19
Meat&Poultry - August 2011 - 20
Meat&Poultry - August 2011 - 21
Meat&Poultry - August 2011 - 22
Meat&Poultry - August 2011 - 23
Meat&Poultry - August 2011 - 24
Meat&Poultry - August 2011 - 25
Meat&Poultry - August 2011 - Facing a new reality
Meat&Poultry - August 2011 - 27
Meat&Poultry - August 2011 - 28
Meat&Poultry - August 2011 - 29
Meat&Poultry - August 2011 - 30
Meat&Poultry - August 2011 - 31
Meat&Poultry - August 2011 - Riding the wave
Meat&Poultry - August 2011 - 33
Meat&Poultry - August 2011 - 34
Meat&Poultry - August 2011 - 35
Meat&Poultry - August 2011 - Microwave magic
Meat&Poultry - August 2011 - 37
Meat&Poultry - August 2011 - 38
Meat&Poultry - August 2011 - 39
Meat&Poultry - August 2011 - Knowing limitations
Meat&Poultry - August 2011 - 41
Meat&Poultry - August 2011 - 42
Meat&Poultry - August 2011 - ‘Dream’ center
Meat&Poultry - August 2011 - 44
Meat&Poultry - August 2011 - 45
Meat&Poultry - August 2011 - 46
Meat&Poultry - August 2011 - 47
Meat&Poultry - August 2011 - 48
Meat&Poultry - August 2011 - 49
Meat&Poultry - August 2011 - 50
Meat&Poultry - August 2011 - 51
Meat&Poultry - August 2011 - 52
Meat&Poultry - August 2011 - Wrapping up convenience
Meat&Poultry - August 2011 - 54
Meat&Poultry - August 2011 - 55
Meat&Poultry - August 2011 - Tools of the trade
Meat&Poultry - August 2011 - 57
Meat&Poultry - August 2011 - Sanitation solutions require the right tools of the trade
Meat&Poultry - August 2011 - 59
Meat&Poultry - August 2011 - Selección de equipo
Meat&Poultry - August 2011 - Turning up the heat
Meat&Poultry - August 2011 - 62
Meat&Poultry - August 2011 - 63
Meat&Poultry - August 2011 - Chico Locker & Sausage Co. earns its stripes
Meat&Poultry - August 2011 - 65
Meat&Poultry - August 2011 - 66
Meat&Poultry - August 2011 - 67
Meat&Poultry - August 2011 - 68
Meat&Poultry - August 2011 - 69
Meat&Poultry - August 2011 - From the Corral - Video auditing goes mainstream
Meat&Poultry - August 2011 - Packaging meets processing
Meat&Poultry - August 2011 - Names in the News
Meat&Poultry - August 2011 - New Product Showcase
Meat&Poultry - August 2011 - 74
Meat&Poultry - August 2011 - 75
Meat&Poultry - August 2011 - Classified Advertising
Meat&Poultry - August 2011 - 77
Meat&Poultry - August 2011 - 78
Meat&Poultry - August 2011 - 79
Meat&Poultry - August 2011 - 80
Meat&Poultry - August 2011 - Advertisers
Meat&Poultry - August 2011 - The Insider
Meat&Poultry - August 2011 - 83
Meat&Poultry - August 2011 - 84
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