On June 20, 2024, the tribunal will determine whether there is a reasonable indication that the alleged dumping and subsidizing have caused injury or retardation, or are threatening to cause injury, as these words are defined in SIMA. If so, CBSA will continue its investigations and, by July 19, 2024, will make preliminary determinations. If these preliminary determinations indicate that there has been dumping or subsidizing, CBSA will then continue its investigations and, concurrently, the tribunal will initiate a final injury inquiry.

Any interested person, association or government that wishes to participate in the tribunal’s inquiry may do so by filing a Form I – Notice of Participation.

In the world of food choices, 2022 was marked by contractions in the valuations of big-name plant-based brands. Private investors re-circled with greater caution in due diligence, assessing unique selling propositions, and how products contribute to unmet consumer needs. Start-ups, scale-ups, legacy CPGs, and their suppliers are in deep iteration mode to meet these complex market aspirations.

Adding to the broader equation is the perceived dichotomy between animal- and plant- based diets. The relatively subtle rise of flexitarian diets is a broader marketplace consideration. Flexitarians represent a larger segment of consumers than vegetarians and vegans alone. Further, flexitarians don’t seem to compromise on taste, texture, pleasure, or expected value in price points. Likely we are seeing some of the continued fallout of this in 2023, with market adjustments, post-hype in 2022.

Heme can produce colour intensity, and ‘bleed’ in plant-based burger patties. Photo © Bill / Adobe Stock

New ingredients

By way of specific examples, globally competitive companies are pursuing food ingredient formulations to address specific needs in the market. Collagen, for example, adds texture and unique mouthfeel in food applications (currently largely produced from meat industry by-products). Companies like Canada’s Liven Proteins are seeking to produce collagen at greater scale through precision fermentation. Whey protein, another important ingredient in a range of dairy products, (traditionally sourced from bovine milk), is being produced at a growing scale by U.S.-based Perfect Day. Significant energy is being committed to food ingredients sourced from mycoproteins (from mushrooms, mycelia, and fungi), and from algal-based powders and oils, by Canadian companies like Smallfood and Mara, for nutritional food supplementation.

Colour also matters in food purchase decisions, as does its ‘naturalness’, and clean label, not an easy balancing act. An example of this is with ‘heme’, derived from either plants or animals, and developed by different alternative protein companies. Heme can produce colour intensity, and ‘bleed’ in plant-based burger patties. Currently, there is an ongoing legal dispute between Impossible Foods and Motif FoodWorks over production process claims in the application of heme.

Global competition in the food ingredients market is surging out of traditionally strong ecosystems in Germany, France, Denmark, Sweden, Switzerland, France, Japan, and Korea to name a few. Companies like Givaudan, IFF, Firmenich, DSM, McCormick, Lesaffre, Novozymes, Chr. Hansen, Griffith, Caldic and Ajinomoto are some of the leading providers of food ingredients meeting new expectations in the subtle art and science of food product formulation. So, where does this leave Canada?

Advantage Canada

In 2022, Canadian food and beverage exports grew at a healthy pace, at 14 per cent year-over-year, but food and beverage imports also increased, up 18 per cent. Changing multicultural demographics in Canada means international food imports are up. According to a recent Farm Credit Canada (FCC) report, expectations for 2023 are that grain and oilseed milling and meat product manufacturing will outperform plant-based protein products, seasonings, dressings. The report added that demand remains strong for ‘affordable, convenient, and sustainably produced foods’, and there is ‘strong demand for flour and edible oils from downstream food and beverage manufacturers.’ Specific to dairy alternatives, oat prices are down 40 per cent, which could make oat-made food alternatives more competitively priced.

Canada’s advantage lies in a traditionally strong land and natural resource base to source raw ingredients from farms, marine ecosystems, and forests. Canada is a leading producer of peas, lentils, flax, hemp, and oats, which increasingly is translating into value-added products such as protein isolates, starches, concentrates, flours, and fibres that are essential for a new generation of products. These lend themselves well to export markets seeking protein-rich foods.

Strong advances in the Canadian food ingredient sector have been driven by the government-backed efforts of Protein Industries Canada and Plant-based Foods of Canada that foster innovation in the ecosystem, especially over the past decade. Companies such as France-based Roquette Foods’ investment in Manitoba, as well as the establishment of Phyto Organix Foods and More Than Protein Ingredients (both in Alberta), are testament to ongoing efforts in plant-based food ingredient creation. It is also important to acknowledge industry challenges, such as Winnipeg-based Merit Functional Foods going into receivership in first half of 2023. A surge of effort by food ingredient companies, old and new including Ardra Bio, Genuine Taste, Mara, Bartek, Biofect Innovations, and Lallemand, are further evidence of an attuned industry seeking to bring valuable and functional ingredients to the marketplace, especially with the power of fermentation (both traditional and precision-based).

These providers will need to conform to the diversity of consumer and business needs in export markets, whether in functionality such as emulsification, stabilizing, texture, colour, or flavour enhancement. If Canadian companies are to thrive, they need to understand these subtle nuances. Realizing these objectives with trading partners in both developed and emerging markets across the Americas, the E.U. and Asia, requires agile ecosystems, supply chain partners, government co-ordination, financing, and university and college researchers astute to market segments. Canada also needs to protect its reputation in food safety, traceability, and lend itself to articulating this among the health, pricing, and sustainability drivers of today’s food sector.

Mark Juhasz is CEO and founder of Harvest Insights. He has more than 20 years of experience in the agri-food industry. He can be reached at www.harvestinsights.com.

This article was originally published in the October 2023 issue of Food in Canada.

The Liberal government, however, insists the ruling is a win, pointing to a clause that confirms Canada has some discretion over its imports.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership includes certain quotas for countries to export dairy at preferred tariff rates into other member countries.

New Zealand says Canada is limiting its quotas to protect domestic dairy processors, who operate under federal rules regulating the cost and supply of products such as milk and cheese.

The country argues its dairy sector has lost the equivalent of $96 million in revenue from the Canadian market in the past three years due to the federal government “effectively blocking access for our dairy industry to upscale its exports” to Canada.

The dispute settlement panel issued a report that says it agrees with part of New Zealand’s complaint, which dates back to May 2022. The panel ordered Ottawa to change how it uses tariff rate quotas (TRQs).

“It’s an important recognition that our exporters have not had fair access to the Canadian dairy market, in line with what we negotiated and paid for under CPTPP,” wrote New Zealand’s High Commissioner to Canada, Martin Harvey, in a statement.

“The outcome of the panel process leaves Canada no choice but to finally make TRQs available to those market players who have an incentive to use them,” Harvey wrote, adding that he is confident the ruling wouldn’t hinder relations between the two countries.

Australia and Japan filed submissions in support of New Zealand, while Mexico, Peru and Singapore also expressed an interest in pushing back against Canada’s use of dairy quotas.

Tuesday’s dispute-settlement report sided with New Zealand on two complaints, finding the country could not use Canada’s quotas and that Canada gave priority access to its own dairy processors, while rejecting two other arguments.

The report noted it was “informative” that Washington had won a separate case on similar grounds to those raised by New Zealand, during a dispute under the Canada-United States-Mexico Agreement, which replaced the NAFTA trade deal.

Canadian Trade Minister Mary Ng did not speak to Ottawa’s losses, instead saying it was a “clear victory” that the ruling acknowledged Canada has some leeway in how it applies the trade agreement.

“It confirms that Canada has the discretion to allocate TRQs, and that’s really important to us,” Ng told reporters Wednesday in Jakarta. “They didn’t think that we were allocating our TRQs in the way that they would like.”

Canada’s influential domestic dairy lobby is calling on Ottawa to see whether it can launch retaliatory complaints against New Zealand.

“Dairy Farmers of Canada is disappointed with the dispute panel’s ruling,” wrote the group’s president David Wiens. “We now call on the federal government to do a thorough review of the measures the government of New Zealand has put in place to support its dairy sector, to ensure that they are consistent with its international trade obligations.”

“The CPTPP has, until now, provided a high standard for trade liberalization, but this agreement with the U.K. seems to leave a significant barrier in place. It does not meet this standard of open trade, and will undermine ambition with future entrants,” said a media statement.

The beef and pork sectors call on Parliamentarians to reject this ascension when it comes to a vote until these barriers are addressed.

Under the current system, there is no viable market access for beef and pork, so the sector is calling on the government to ensure the Canadian/United Kingdom bilateral agreement currently being negotiated will guarantee fair access.

Failing that, they are asking Parliament to ensure producers and processors of both products are fairly compensated for the resultant damages and losses.

The main area of ​​concern for the industry is U.K.’s decision to not accept Canada’s food safety and animal health systems and measures. These non-tariff barriers limit Canadian companies’ access to the U.K. market. Additionally, there is a lack of reciprocal tariff measures. Further, an interim measure allows British beef and pork full access to the Canadian market.

Under the interim agreement (Canada UK Trade Continuity Agreement) that replicates the Comprehensive Economic and Trade Agreement (CETA), in the past two years, the U.K. has exported more than 7,000 tonnes of beef valued at almost $40 million to Canada. In contrast, Canada exported 657 tonnes of beef valued at $7.6 million to the U.K. in 2021 and zero in 2022. The situation for pork is equally poor – the U.K. shipped 1,300 tonnes of pork valued at $10 million in 2022 and Canada shipped $0 pork to the U.K.

“Canada’s red meat sector has traditionally been vocal in its support of free trade. Fair and open market access has allowed both the beef and pork industries to thrive, so our opposition is not something we have entered into lightly or without consideration,” said Chris White, president and CEO of the Canadian Meat Council.

The “announcement granting the U.K. accession to the CPTPP is a disappointing development for the Canadian pork industry. The inclusion of the U.K. without adequate safeguards and market access provisions for Canadian pork raises concerns about potential imbalances and unfair competition. We strongly urge the government to address these issues promptly and ensure Canadian pork producers are not disadvantaged in this new trade landscape,” added Stephen Heckbert, executive director of the Canadian Pork Council.

In 2003, Taiwan imposed import restrictions on both under-30 month and over-30 month Canadian beef, following the discovery of Canada’s first domestic case of bovine spongiform encephalopathy (BSE). Canada regained Taiwan market access for under-30 month beef in July 2016. In 2021, Canada was officially recognized by the World Organisation of Animal Health having negligible risk status for BSE.

This regained access will offer an opportunity to expand Canadian beef exports to Taiwan and diversify export markets in the Indo-Pacific region.

“Expanding our trade relationships in the Indo-Pacific region is a top priority for the Government of Canada, and Taiwan presents many opportunities for Canada’s beef sector. Canada exports nearly half of its agriculture production and, as a trusted supplier, our high-quality products are sought-after around the globe,” said Marie-Claude Bibeau, agriculture and agri-food minister.

In 2022, Canada was the seventh largest supplier of beef and beef products to Taiwan, accounting for nearly $14 million. In 2022, Taiwan’s global imports of beef and beef products reached $1.9 billion, with the top suppliers being the U.S. ($1 billion), Paraguay ($288 million), Australia ($280 million) and New Zealand ($172 million).

Guatemala had closed access to its market for Canadian meat products in December 2013 due to new requirements to inspect facilities in Canada for approval of exports. Since 2013, the Canadian Food Inspection Agency, with the support of Agriculture and Agri-food Canada, has been negotiating access for Canada’s meat products to Guatemala.

As part of this market access, Canadian exports of beef, pork and poultry meat products produced on or after April 17, 2023, are now eligible to be exported to Guatemala.

Increased exports into Guatemala has been part of Canada’s long-term strategy to grow international markets for Canadian exporters, while contributing to global food security benefiting global consumers with access to high-quality meat and poultry products.

This also provides more opportunities for Canadian producers to diversify their exports and access key markets that are in close proximity geographically. Given the high transportation costs and supply chain challenges industry has faced, this access is welcome news.

“This is a big win for Canada. The success of Canadian agriculture depends heavily on Canada’s ability to export to the world, and Guatemala presents many opportunities for our exporters. Our Government will continue to support industry’s efforts to get Canadian businesses into new and existing markets and stimulate economic growth,” said Marie-Claude Bibeau, agriculture and agri-food minister.

This accomplishment ushers in a new era for Canada and its second-largest market for beef and beef products: expanding market access for Canadian exporters, while also benefiting Japanese consumers who will have greater access to Canada’s high-quality beef products.

The development also removes the last restrictions on Canadian beef that Japan put in place in 2003 after the discovery of a case of bovine spongiform encephalopathy (BSE) in Alberta.

Under the new Indo-Pacific Strategy, the federal government committed to seizing economic opportunities for Canada by strengthening its regional partnerships, including with Japan. The Canadian Food Inspection Agency, with the support of Agriculture and Agri-food Canada, has worked over the past few years to assert the highest production standards and quality assurance of Canadian beef in order to reopen full access in key markets like Japan.

Japan is an important market for Canada and the world. In 2022, the Japanese market for Canadian beef and beef products had an estimated value of $518 million, largely due to Canada’s preferential access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This expanded market access opportunity follows another loosening of restrictions in 2019, when Japan approved imports of Canadian beef from cattle older than 30 months.

“The Canadian Meat Council is very pleased to see this expansion of our beef access to Japan. Our members view this as a critical market for their products, including processed beef and beef patties. This agreement will allow our industry to further build on the recent successes they have enjoyed in Japan since the CPTPP was ratified. Thank you to Ministers Bibeau and Ng, and the hard work done by CFIA to achieve this new opportunity,” said Christopher White, president and CEO of the Canadian Meat Council.

The FAO estimates that by mid-century, global food production will need to increase by 70 per cent to meet the nutritional demands of a growing world population. Amidst the increasingly tangible impacts of climate change, stressed wild-caught fisheries, or the concerns surrounding ecosystem impacts of finfish aquaculture, the opportunity with seaweed and shellfish cultivation, sometimes called regenerative aquaculture, is gaining global attention.

Seaweed and algae contain many nutrients that are making them popular among consumers. Photo © boommaval / Adobe Stock

Benefits

Edible seaweed has been consumed around the world for thousands of years, particularly in east and southeast Asia (especially Japan) and maritime Latin America and Europe (Ireland and France) and by First Nations in North America. Experts believe there can be as many as 10 million species of algae (mainly microalgae), including well-known seaweed varieties such as wakame, kombu, dulse, sugar kelp and nori. This rich biodiversity is a resource for Canada, and an opportunity to connect entrepreneurs with marine scientists and Indigenous communities.

The nutritional and culinary aspects of seaweed, kelp and shellfish are becoming more fully understood. Seaweeds contain vitamins, fibre, and trace mineral elements not attainable from land-based plants. Seaweeds rich in antioxidants fight free radicals and protect the body’s immune system, reducing inflammation and disease, while supporting gut health function with prebiotic characteristics. Seaweeds and algae can also serve to meet growing demand for animal-free omega-3 rich fatty acids containing DHA and EPA, both of which are critical to healthy brain function at all stages of life. A note of caution, though: Seaweeds can be high in iodine.

From a job creation, and economic development perspective, seaweed, algae, and shellfish are adept at producing high yields of biomass, use non-drinkable seawater, and grow on non-arable land. Seaweeds and algae also have broader economic use functions beyond that for human consumption. This includes animal feed, fertilizers and soil enhancers, and compostable bioplastic.

Seaweeds rich in antioxidants fight free radicals and protect the body’s immune system. Photo © khumthong / Adobe Stock

Seaweed and ocean farming can have important environmental benefits. As an effective carbon capture system, seaweed and shellfish production, given their often-rapid growth rates, can help to mitigate the rise of atmospheric CO₂, while supporting aquatic life and cleaning the water in its surroundings. Seaweed consumes nitrogen and phosphorus, elements that can harm the oceans in large quantities. As climate and carbon financial markets gain more maturity, regenerative aquaculture offers a multi-benefit proposition. For example, the UN’s Ocean Stewardship Coalition developed in 2020 a Seaweed Manifesto, to emphasize that ocean farming of seaweed and shellfish should be considered, in part, as a carbon sink, and promoted as a nature-based climate solution.

Innovating with seaweed

To meet the prospects and opportunity of ocean farming, companies and organizations are stepping up with creative businesses to meet growing demand. In New England, ongoing research at the University of Maine connects seaweed, algae, and microalgae with food science and human nutrition. Companies like Springtide Seaweed and Atlantic Sea Farms bring to market products like air-dried kelp milled into powders as seasoning, or kelp ideal to add to smoothies. New York City-based Akua provides meat alternatives in the form of ground kelp that can be used for anything from burgers to meatballs and tacos.

In Europe, Havhost is a Danish member-driven organization promoting and developing regenerative ocean farming with communities along their coastline, growing everything from seaweed to mussels and oysters that use specially designed harvest towers and equipment. Havhost is focused on educational activities and learning experiences for its members. Netherlands-based North Sea Farmers is another member-led organization promoting and increasing the production of E.U. farmed seaweed, and now counts major companies like Unilever and Shell among its partners.

The UN recommends ocean farming of shellfish as a nature-based climate solution. Photo © daisuke kurashima/EyeEm / Adobe Stock

In Canada, B.C.-based Ocean Regenerative uses seaweeds as biostimulants and soil conditioners. According to the company, the development of the sector depends on well-trained personnel, technicians, scientific researchers, and entrepreneurs working with financing organizations, institutions, and investors. Testament to this on Canada’s East Coast is New Brunswick-based Atlantic Mariculture that has been harvesting dulse, a type of seaweed, for consumers since 1974.

GreenWave, founded by Newfoundland-born Bren Smith, is an organization intent on training thousands in regenerative ocean farming using a polyculture method of multiple sources of food production that includes shellfish and seaweed, set on plots of ocean acreage in relatively shallow waters. GreenWave claims that with access to a boat, equipment and a $20,000 to $50,000 investment, companies can be established. Smith and GreenWave are working with communities in Atlantic Canada, as well as with First Nations on Vancouver Island.

Export potential

This leads to the question of Canadian leadership in the ocean and seafood economy, both for domestic production and consumption, but also for export. Canada is uniquely positioned between Asian, European, Latin American, and U.S. markets on all coasts. Canada can build a combination of scientific research in marine biology, food science, nutrition, with application of traditional Indigenous marine food knowledge. Seaweed, algae, and microalgae have been used in food applications for years, but there’s renewed vigour from development, health, nutrition, and sustainability perspectives.

Canadian management systems and applied technologies can provide further context for leadership in ocean farming. Canadian organizations need to deliver quality experiences, and foods that are tasty, nutritious and provide value for the cost. Public and private investment will be needed to advance the sector, and update regulations, policies, and incentives. This will require determined and informed dialogue, as concerns are being raised about the impact of fish farming on ecosystems. There is also a significant current of ‘re-shoring’ taking place in many nations as economies try to grapple with food inflation. In this context, Canada will need to think carefully which seaweed markets are developed domestically, and which provide greater prospects for export be it seaweed products, packaged goods, nutritious ingredients, or technical applications. For example, the U.S. has the ninth largest coastline in the world, but ranks 16th in farm-raised seafood production, and imports 85 per cent of its seafood, clearly an ongoing opportunity for Canada. With major federal initiatives such as Canada’s Ocean Supercluster, and co-ordination with the Department of Fisheries and Oceans, along with regional and provincial governments in maritime Canada, the prospects for a rising global opportunity are there. 

Mark Juhasz is CEO and founder of Harvest Insights. He has more than 20 years of experience in the agri-food industry. He can be reached at www.harvestinsights.com.

This article was originally published in the October 2022 issue of Food in Canada.

Demand to rise

Many U.S. and foreign olive oil industry experts are, however, confident demand for olive oil in the U.S. and Canada will rise again. This sentiment was also reflected at the New York Fancy Food Show (NYFFS), which was held mid-June. Long rows of olive oil exhibitors from Italy, Spain, Greece, Turkey, Portugal, and Tunisia showcased their products at the event. Italy, this year’s “partner country” at the show, made a strong pitch with a variety of brands.

In an interview with Food in Canada at the trade show, Bill Lynch, president of Specialty Food Association (SFA), pointed out that the turnover of U.S. specialty foods in 2021 had touched a whopping $175 billion, up from $150 billion in 2020.

The growing popularity of Mediterranean diet is expected to increase consumption of olive oil. Photo © weyo / Adobe Stock

Mediterranean diet popularity to generate demand

Olive oil suppliers from the Mediterranean region also discussed Canada’s market potential. Some suppliers from Greece, for instance, observed their exports to Canada had declined the last two years. Tunisia, as one Greek supplier lamented, was “pulling the rug from under the feet of Greek olive oil suppliers”. Tunisia has been competing against Greece and other countries in the world’s major markets.

Tunisian olive oil exhibitors at NYFFS were confident about continuing their success streak because of the digitalization of the approval process and new product labels identifying the products’ origins.

The Greeks are, meanwhile, banking on the growing Canadian interest in Mediterranean diet, and highlighting the “uniqueness” of Greek olive oil in terms of flavour, acidity, and aroma, as the Greek olive oil trade association described it.

Even though Greek olive oil imports into Canada increased by eight per cent, the value of the imports fell by four per cent in 2020 over the previous year. This was explained by the stagnant and, in some cases, declining prices of Greek olive oil in Canada.

While a large section of Canadians consume domestically produced canola, sunflower, soya and palm oil, olive oil consumption has risen. Italian olive oil dominates the Canadian market. Greece now trails behind Tunisia, which is the third most popular olive oil supplier behind Spain.

Spain and Turkey to penetrate North America

Spanish olive oil suppliers have long eyed the lucrative North American market. Alberto Gonzalez, export manager (Americas) at the Sevilla-based Oleoestepa SCA, a vertical olive oil producing co-operative, explained in an interview at NYFFS, Oleoestepa has about 10 million trees in Seville, Cordoba, and Malaga. The company produced some 35 million L, of which 2 million L were exported to the United States.

“The U.S. is an attractive market … it is very big and the olive oil consumption is increasing. The U.S. is a high-cost economy where consumers are willing to pay more for high-end products. Consumption is, finally, rising,” he observed. 

Gonzalez said Italy, besides being an exporter, also imported a large volume of olive oil, which it re-packaged and re-shipped to traditional markets.

Comparing the North American market with the European Union region, Gonzalez said the EU market was “more mature” because the latter had been consuming olive oil longer than North America.

However, Spanish and other European olive oil suppliers face a challenge at home because of the unusually long heatwave and lack of rain. This could lead to a sharp decline in production. Spain’s agricultural minister Luis Planas recently said the olive harvest this year could drop significantly if the dry spell continued.

Nadim Kalpaklioglu, president of Turkish olive oil producing company Ege Nkm Gida Sanayi of Izmir, was exhibiting both olives and olive oil at the show. His company produces some 300,000 tons of olive oil annually; about 50 per cent of this production is sold in the domestic market and the rest exported, mainly, to Europe (Spain and Italy), the United States, Canada, Japan, Australia, and the Middle East.

While Kalpaklioglu said the response from U.S. buyers at the show had been “lukewarm”, he pointed out that besides exporting directly to the U.S., his company also shipped to Italy for re-packaging and re-shipment to Western markets, including the United States and Canada. “Italy re-exports our olive oil … but we also have our own direct importers and distributors in North America. We see that food prices, including olive oil prices, have risen everywhere. Inflation is a global phenomenon caused by the pandemic, shortages, supply chain disruptions, rising costs of raw materials, etc.,” Kalpaklioglu said.

Efe Firat, chief of the agricultural section of the Izmir-based Aegean Exporters Association, said supply chain disruptions “have impacted all of us”. “Our Turkish olive oil and food suppliers inform us that they do not find enough containers because of the disruptions. We are closely monitoring container prices which have increased three times over the pre-pandemic price level,” Firat said. 

He said the “growing health consciousness” of consumers in the U.S. and Canada, and their fascination for the Mediterranean diet would generate demand for olive oil, an important element of the Mediterranean diet. Also, North American consumers are expected to buy olive oil since sunflower oil prices have soared because of the Ukraine crisis.  

Expanding presence in the Indo-Pacific will help Canadian farmers, food processors and exporters maximize their opportunities and position Canada as a preferred supplier in key emerging markets. The Indo-Pacific encompasses more than 40 economies and is the fastest growing region in the world. It is Canada’s second-largest regional export market and trading partner (after the United States), with $26.5 billion in annual two-way agri-food and seafood trade in 2021.

The new IPAAO will help Canada expand trade, investment and supply chain resilience, one of five strategic objectives for Canada under the new Indo-Pacific Strategy, alongside promoting peace, resilience and security; investing in and connecting people; building a sustainable and green future; and ensuring Canada remains an active and engaged partner.

“The Indo-Pacific Strategy is great news for Canada’s agriculture and agri-food sector. Opening a Canada Indo-Pacific office has long been a high-priority request from industry members and we will work with our partners to benefit from the opportunities this new initiative can bring,” said Marie-Claude Bibeau, agriculture and agri-food minister.

Canada has been working collaboratively with South Korea to gain access for fresh cherries since 2015. Increased exports into South Korea has been part of British Columbia’s long-term strategy to grow international markets for cherries, while securing the best price.

British Columbia’s cherry industry produces 95 per cent of Canada’s sweet cherries and has an opportunity to grow even more thanks in part to the premium new cherry varieties bred at Agriculture and Agri-Food Canada’s Research Centre in Summerland, B.C.

With the recent expansion in acreage and production volume along with global demand, sweet cherries have now become Canada’s second largest exported fruit crop behind blueberries. As the region in North America with the latest-growing cherries, British Columbia exporters have a competitive advantage when the cherries are ready to go to market in August and September.

South Korea remains a priority trading partner for Canadian agri-food products. This new access provides more opportunities for Canadian growers to diversify their exports in the Indo-Pacific region.

“With new access to the South Korean market, growers in British Columbia can continue to showcase their cherries around the world and expand trading relationships. This step demonstrates our government’s commitment to get Canadian businesses into new and existing markets and stimulate economic growth,” said Marie-Claude Bibeau, federal agriculture and agri-food minister.

“The BC Cherry Association is extremely pleased that efforts from government and industry have secured access to the South Korean market for Canadian cherries. Our growers and industry partners look forward to building long-lasting relationships with Korean customers and cannot wait to see cherries branded with the maple leaf in stores across South Korea,” added Sukhpaul Bal, president, British Columbia Cherry Association.

In collaboration with the Canadian Pork Council (CPC) and the Canadian Cattlemen’s Association (CCA), CMC is undertaking activities such as trade advocacy missions, engaging with in-market intelligence specialists, and arranging inspection visits by international officials to demonstrate compliance with food safety standards for export. This work will help build and strengthen relationships with foreign industry partners and boost Canada’s reputation for high-quality and safe products.

Canada’s red meat sector is an important part of the Canadian economy with exports worth more than $9.4 billion in 2021. Increasing exports benefits Canadian producers and processors by stimulating economic activity and helping to grow their sales in international markets.

“Canada’s red meat industry is a strong driver of our nation’s economy. This investment will help the industry diversity its exports and develop markets by building new trade relationships. Our producers and processors are at the heart of the vitality of our rural communities, and we will continue to support them,” said Marie-Claude Bibeau, agriculture and agri-food minister.

“CMC along with Canadian Pork Council and Canadian Cattlemen’s Association are grateful for the support given to our industry through the AgriMarketing program. This funding allows us to do valuable advocacy by reaching out to our counterparts and build allies to help influence decision-making in these markets. We are thankful that the government recognizes the importance of foreign markets for the meat industry as the demand keeps growing for our high-quality Canadian meat around the world,” added Chris White, president and CEO, Canadian Meat Council.

Promising market

The demand for plant-based meat alternatives is fuelling the growth in pulses. An Ernst & Young study for Protein Industries Canada (PIC) sees the business of meat substitutes growing to a $250-billion market annually by 2035.

In China, a market that already consumes about $10-billion worth of these products, demand could easily grow by another 50 to 100 per cent. For Canadian processors, significant population growth in Asia, the Middle East and Africa provide target markets for pulse products.

Canada has long been a major exporter of pulse commodities. In 2019, it ranked fifth in global commodity exports, and 11^th in food exports. The lower status of Canada’s actual food exports is the impetus for change. In 2019, 78.5 per cent of Canada’s food exports went to the U.S., but Canada is also now in free trade agreements with many of the world’s largest and fastest-growing importers, such as Japan, the EU and South Korea. For example, Saskatchewan produces more than a million hectares of peas, and has been a top exporter of lentils to critical markets in Asia, such as India.

The rising demand for plant protein like pea flour is expanding the export markets for Canadian pulses. Photo © Moving Moment / Adobe Stock.

Capacity building

To build Canadian capacity for exporting and promoting quality pulse products, Pulse Canada, the USA Dry Pea and Lentil Council, and the American Pulse Association created in 2017 the Pulse Research Database for ongoing research into the nutrition, health, quality, functionality, processing and applications in pulses.

In August 2021, PIC announced the Food Convergence Innovation (FCI) Canada – Food and Beverage Supply Chain Project. The project is focused on enhancing connectivity in order to help strengthen Canadian food supply chains, as well as diversifying Canada’s plant-based food and ingredient offerings. PIC, launched in 2018 by the federal government, is partnering with several food and beverage organizations for the $2.7-million project.

PIC then said, “This will lead to the development of new plant-based protein ingredients and products, providing consumers around the world with more choices that align with their values, lifestyles and nutrition needs.”

Together with industry, PIC has committed more than $377 million to the Canadian plant-based sector.

All of the above stats indicate the value-added plant and pulses market is in strong demand. According to ReportLinker in Yahoo Finance, in August 2021, the global pea processed ingredients market is projected to reach nearly USD $5 billion by 2026, growing at a CAGR of 10.1 per cent. Led by Saskatchewan-based AGT Foods and Ingredients, industry leaders in the Canadian pulse sector are actively pursuing this opportunity.

Investments

Significant financing is also underway. In 2018, French company Roquette began construction of a $600-million facility in Portage la Prairie, Man. The large pea processing plant took its first shipments of peas in November 2020. According to Roquette, the facility is the largest of its kind in the world, and will produce pea protein for food and sports nutrition products, along with food-grade starches and components like pea cream for animal feed.

The new plant manager at Roquette said one of the reasons to build a plant in Manitoba was “to bring the processor to the peas, rather than shipping the product to a distant processor [which is the case now]. Our main customer is North America. It’s very strategic because Canada is a [leading] producer of peas; that’s why it’s very nice to be here.”

The Roquette facility expects to process 125,000 metric tons of peas annually once it reaches full operation in 2022.

In 2019, Ingredion, a leading ingredients supplier, formed a partnership with Saskatchewan-based Verdient Foods to produce protein concentrates and flours from lentils, fava beans and peas. In Manitoba, Merit Functional Foods has a new 94,000-ft plant where it processes pea protein under the brand names of Peazazz and Peazac. Merit’s canola proteins (Puratein C and Puratein HS) “have low water binding capacity, and will not pull water from the syrups used in plant-based protein bar formulations, thereby allowing bars to stay more pliable and softer in texture. Merit’s blend of pea and canola protein is unparalleled in terms of nutritional quality,” according to Jeff Casper, director of research and development at Merit. The MeritPro customized pea blend works in dairy alternatives, snack bars and ready-to-mix beverages.

A recent development out of Alberta’s growing agri- and food- innovation ecosystem is the launch of Phyto Organix Foods. The company plans to be Alberta’s first state-of-the-art plant-protein facility using wet plant protein fractionation. The planned facility intends to process peas, and use temperature, pressure and water to break dehulled peas into protein, fibre and starch. Phyto intends to work with farmers using regenerative agricultural practices to source organic peas.

As ambition to export more value-added products grows domestically, it is worth mentioning global trends. Reporting in the Economic Times mentions that only in the spring of 2021 did India lift a three-year restriction on the import of some pulse categories. As the world’s largest consumer of pulses, traders and importers welcomed the move, while Indian millers expressed surprise at the decision. In US, under the Biden Administration, a continuation of some ‘buy American’ initiatives remain. In Brazil, the EU and Israel, several companies and partnerships are bringing innovative thinking and novel technologies to the development of pulse products, writes the Good Food Institute. Initiatives as diverse as the Brazil-based Institute of Beans and Pulses, Europe’s Smart Protein, or Israel’s Innovopro and ChicP are garnering global attention. Canadian value-added pulse product companies will face intense competition.

In the author’s experience, Brazil produces high-quality cocoa, an ingredient that can meet the demands of Canadian consumers, and address supply shortages across the country.

Over the last year-and-a-half, Canadians from coast to coast turned to food, looking to not only fill spare time but also soothe stresses, whether that meant baking sourdough or enjoying take-out at home. This trend is showing no signs of slowing – it’s observed that diners continue craving comfort in food, and it’s no surprise due to the unpredictability surrounding us all during these turbulent times. While shoppers have proven their continued dedication to value-based chains for essentials, they are increasingly relying on premium suppliers for indulgences, with one consumer in a Deloitte report reflecting that “food is central to treating myself.” Further, if inflation prices for sugar and confectionary in Canada continue to rise, it’s estimated that people will turn to premium chocolates as prices for lower quality products become increasingly unjustifiable.

Canada relies heavily on countries whose cocoa supply is at risk due to dry weather conditions, which poses an ethical issue that may make Canadians weary at point of purchase, since the anticipated increase in demand puts protected areas at risk of deforestation in the name of growing cocoa. Besides, many cocoa-producing nations also continue to use child labour to harvest cocoa.

North American consumers, including Canadians, are becoming more socially conscious with the brands they choose to support, looking for those that reflect their values. This is true not only for social issues, but also environmental ones, with 49 per cent of Ontario shoppers claiming to be more likely to buy products in eco-friendly packaging, and 52 per cent of Quebec shoppers more likely to buy from companies that protect the environment. Brazil meets this consumer demand by producing some of the world’s highest quality cacao beans and chocolate, but also by protecting its natural environment.

Much of the cocoa produced in Brazil is done so using the Cabruca system, which entails shade planting under the canopy of forest trees. This system provides ideal conditions for cacao and promotes biodiversity, protecting the Atlantic rainforest. Cacao cohabitates in the shade, thriving on 30 per cent sunlight and 70 per cent shade, with other native species. This has led to 400,000 hectares of cattle pastures in the state of Pará to make way for cacao plantation and native forests, and 565,000 hectares of cacao in Bahia with about 70 per cent being produced in accordance with the Cabruca system.

The Cabruca system’s benefits are far reaching. The long-term health of these complex and diverse ecosystems result in a healthier and more resilient environment for growing the crop. Canadian foodservice buyers, suppliers, chefs, restaurateurs and, ultimately, consumers are offered a consistent ingredient that meets their demands for not only socially- and environmentally-responsible goods, but also high-quality, gourmet products. In fact, a Brazilian product from the brand ChOr made with 55 per cent cocoa from the aforementioned Brazilian state of Bahia has been awarded the AVPA 2021 Gourmet Bronze award.

To help Canadian companies learn more about cacao production in Brazil, and assist them in sourcing the ingredient, Chamber of Commerce Brazil-Canada (CCBC) is hosting a free seminar in partnership with ABICAB (Brazilian Cocoa, Chocolates, Peanut and Candies Manufacturers Association) as part of their annual Brazilian Week on September 7, 2021. More details are available at ccbc.org.br/brazilianweek.

Paulo de Castro Reis is chief officer for institutional relations and business affairs at the Chamber of Commerce Brazil-Canada.

When foods are imported into Canada, CFIA receives commercial import data electronically from Canada Border Services Agency (CBSA) via the CBSA’s Single Window Initiative (SWI) – Integrated Import Declaration (IID). SWI streamlines the sharing of commercial import data between the import community and the Government of Canada. Participating government departments and agencies rely on IID data to validate import information and to ensure requirements are being met.

The information conveyed through SWI is intended to satisfy a variety of legislative regimes. As such, service options must accommodate complex and, sometimes, disparate regulatory requirements.

Two recent issues demonstrate the importance of co-ordination among regulators and the import community.

Declaring Importer of Record and SFC Licensed Importer

As food distribution becomes increasingly global, so do the legal entities involved in delivering food to Canadians. Whether due to tax, commercial or residency requirements, there are many legal reasons why the Importer of Record declared for customs purposes may be a different legal entity than the SFC Licenced Importer. However, current IID data fields do not provide a method by which to declare an SFC Licenced Importer specifically. This lack of functionality presents an issue as the Safe Food for Canadians Regulations (SFCR) require importers to declare the name and address of the SFC Licensed Importer as well as the licence number. In cases where the Importer of Record and the SFC Licensed Importer are different entities, there is no way to communicate this information via IID. Further, the discrepancy has been noted by CFIA as a possible non-compliance (i.e. erroneously suggesting the wrong SFC licence number had been declared).

The CFIA has taken action to address this issue, and is in the process of reviewing IID data fields to determine how best to capture the name and address of the SFC Licenced Importer. In the meantime, CFIA has confirmed the declaration of the SFC licence number will be sufficient to allow CFIA to access the associated name and address of the SFC Licensed Importer for the purpose of SFCR.

Solution for HS codes shared by foods and NHPs

Last December, our colleague Dr. Jon-Paul Powers wrote in this column about the confusion and delays experienced by importers of natural health products (NHPs) whose shipments were being automatically rejected at the border for failure to enter an SFC licence. The import issues arose due to the Automated Import Reference System (AIRS) linking certain HS codes with the requirement for an SFC licence. In fact, the system was not implemented in a manner that recognized that in some cases, the same HS code can apply to a food or an NHP. Specifically, when there is a regulatory jurisdictional overlap in relation to an HS code, the SWI system necessitates the import requirements be satisfied for all applicable programs. For NHPs, this meant forcing the declaration of an SFC licence, even though the import of an NHP, a subset of drugs, must occur via a site licence, not a food licence.

Resolving this issue involved co-ordination with both Health Canada and CFIA. Requests were made to add affected HS codes to Health Canada’s Regulated Commodities Data Element Matching Criteria for NHPs, and CFIA updated AIRS to include an “Other End Use” exemption such that the other government department regulating the goods can be identified.

Moving forward, Health Canada intends to co-ordinate with CBSA and CFIA to ensure exemption codes are available for any potentially new overlapping HS codes added to the Data Matching tables. Industry is encouraged to reach out and bring affected HS codes to Health Canada’s attention.

Rejected shipments lead to delays and costs. This increases the pressure on businesses to implement a “quick fix” rather than investigate and resolve the root cause. However, certain actions can trigger unintended legal consequences.

Laura Gomez and Gladys Osien are lawyers in the Ottawa offices of Gowling WLG, specializing in food and drug regulatory law. Contact them at laura.gomez@gowlingwlg.com and gladys.osien@gowlingwlg.com.

“We should take our hats off to our producers and processors,” said Johanne Héroux, senior director, corporate affairs and communications with Loblaw. “They did a remarkable job to ensure the food chain from farm to fork remained intact.”

Héroux was one of a half-dozen agri-food experts who participated in a virtual conference on the impacts the pandemic had on the industry, and how it responded.

The noon-hour forum on March 31, 2021, was organized by the Montreal Chamber of Commerce as part of the Re-launch Montreal movement, which aims to mobilize stakeholders and help the city recover economically from the ongoing public health crisis.

“Montreal has a rich ecosystem in food production and is the heart of a huge supply chain,” said Kathleen St. Pierre, a partner with the Quebec City office of global accounting giant Deloitte.

She said the pandemic had major impacts on consumer habits and industry trends.

A notable change has been a double-digit increase in demand for healthy, ecologically friendly and locally produced food.

“Seventy-three percent of people are ready to pay more for products from sustainable development,” said St. Pierre.

Online sales also soared during the pandemic, she added.

In the roundtable discussion that followed, forum panelists painted a glowing portrait of Quebec farmers and food processors and their ability to respond to the serious supply chain and market challenges that arose a year ago, when Montreal had one of the worst COVID-19 mortality rates in the world.

“Producers showed their resilience,” said Muriel Dubois, a field crops farmer and first vice-president on the board of Canada’s largest agricultural co-op, Sollio Co-operative Group, which owns Olymel, Canada’s largest pork producer. “There was no break in the supply chain.”

However, she added the pandemic strained a system plagued by labour shortages and relies heavily on foreign workers.

She pointed to a number of possible solutions, including better targeting of migrant workers, moving processing plants into or close to large population centres, an increased used of robotics and other emerging technologies and active training of young people to relief an ageing workforce.

“Meat plants need butchers (and) Olymel needs 3,000 workers,” said Dubois. “We have to extend the value supply chain. We need to accept that some front-line workers are essential and require training and experience.”

Martin Lavoie, president and CEO of Agri-Food Export Group, the largest association of its kind in Canada, said oversea sales of soy, pork and other food products jumped 11 per cent during the pandemic.

Though predictable, given the increased demand worldwide for food during the public health crisis, Lavoie praised what he called the “flexibility” of Quebec food makers, who overnight developed new retail or export markets for their goods when traditional markets like restaurants disappeared due to government-imposed lockdowns.

“It showed the robustness of the sector (and) permitted us to get through the crisis,” said Lavoie.

He also praised the provincial government for its heavy promotion of the Le Panier Bleu buy-local initiative, which helped create strong domestic retail demand for Quebec-made food products.

For his part, Jacques Nantel, professor emeritus and e-commerce retail expert at HEC Montréal, the Université de Montreal’s graduate business school, said the pandemic helped to accelerate the use of online shopping in the agri-food industry.

“It propelled things ahead five years,” said Nantel. “The food sector was one of the last to join (e-commerce). The pandemic provided the sector a great service.”

This article was originally published in the May 2021 issue of Food in Canada. 

“Despite the current context, it was imperative for us to recognize the achievements of an industry that has been put to the test over the past year and that has brilliantly risen to the challenge. Canadian exports are increasing, proof that the industry knows how to adapt and face headwinds. The Alizés Awards take on a very special meaning this year,” Martin Lavoie, President and CEO of Group Export, said in a release.

Known in English as trade winds, the Alizés refer to the winds which have helped establish the main maritime trade routes between continents over the centuries and linked Canada to foreign markets. They highlight the excellence of the work accomplished by Canadian agri-food companies that have distinguished themselves in international markets through impressive growth, innovative marketing strategies or structuring consolidation actions.

“I am looking forward to read the applications again this year,” said Louis Turcotte, senior director, corporate and commercial financing at FCC and Chair of the jury. “Every year, companies impress us with their inventiveness and perseverance. I am convinced that the next candidates will be no exception.”

Canadian agri-food exporters are invited to visit lesprixalizesawards.ca to register and receive their application form. The application period will close on June 19, 2021 at 5:00 pm EDT.

]]> Kristy Nudds https://www.foodincanada.com/exporting-and-importing/consultation-begins-on-the-canada-grain-act-review-147260/ Wed, 13 Jan 2021 13:43:12 +0000 https://www.foodincanada.com/?p=147260 …]]> The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, has announced the launch of the consultation phase of the Canada Grain Act review while speaking at CropSphere’s annual general meetings, hosted by the Saskatchewan Crop Organizations.
The consultation will allow the federal government to hear the perspectives of the grain sector on how to reform the Act. The consultation portion of the Canada Grain Act review will be held online until April 30, 2021.
The government is seeking feedback from grain industry stakeholders on ways to potentially update the legislation, which has largely been unchanged for almost half a century.
Views and suggestions from grain industry stakeholders will be analysed to determine what changes to the Act may be needed to help ensure Canada remains a strong competitor in the modern, global grain market.
The review will also complement the work being done by the Government’s Agri-food and Aquaculture Regulatory Review Roadmap and the Economic Strategy Table for Agri-food.

“Our Government is inviting Canadian producers, grain handlers, processors, and exporters to share their views on possible changes to the Canada Grain Act. Together, we will help shape an innovative and modern regulatory system that safeguards grain farmers, grows Canada’s reputation for grain quality and helps our grain industry compete with the world.” – The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

“The marketplace for grain has greatly evolved over the past half century, and now is the time for the Canada Grain Act to reflect that evolution. I encourage all those with a stake in Canada’s grain industry to make their voices heard as part of this consultation.” – The Honourable Jim Carr, Special Representative for the Prairies

“The Canadian Grain Commission supports the review of the Canada Grain Act, and we look forward to working with AAFC and stakeholders to continue improving Canada’s grain quality assurance system and protections for producers.” – Doug Chorney, Chief Commissioner, Canadian Grain Commission

Quick Facts
• The Canada Grain Act is the legislative and regulatory framework for grain quality assurance in Canada. The Act sets out the objectives and functions of the Canadian Grain Commission, which is responsible for regulating grain quality and handling in Canada to ensure a dependable commodity for domestic and export markets.
• Under the Canada Grain Act, the Canadian Grain Commission is responsible for establishing and maintaining Canada’s grain grading system. The Commission also provides various safeguards for grain farmers.
• The Canadian Grain Commission’s operations cover three major areas:
o the grain quality program (including establishing grain grading standards, grain inspection weighing and certification, and grain safety testing, analysis and monitoring);
o the grain quality research program (including assessing and developing procedures and technologies for grain grading, assessing grain harvest quality and end-use properties, and developing new uses for grain and evaluating new varieties); and,
o the safeguards for grain farmers program (including payment protection, the allocation of available producer cars, and the resolution of grading disputes).
• Canadian grain production has increased significantly over the past decade. Canadian grain production was 93 million metric tonnes in 2020, compared to 69 million metric tonnes in 2010.
• The volume of Canadian grain deliveries to licensed facilities was 62 million metric tonnes in 2019-20, compared to 40 million metric tonnes in 2009-10.
• Canadian grain exports from Canadian Grain Commission-licensed grain elevators totaled 44.3 million metric tonnes in the 2019-20 crop year, compared to 30.8 million metric tonnes in the 2009-10 crop year.

“World population growth, higher purchasing power in emerging markets and new trade agreements are key factors in potentially creating more opportunities for Canada to increase exports,” said J.P. Gervais, FCC chief agricultural economist, in releasing this year’s trade report: Opportunities and Challenges to Diversify Canada’s Food Exports.

“Combined with our competitive advantages in natural resources and innovation, and a stellar food safety reputation, Canada has an opportunity to improve its world standing as a major food exporter, as well as to diversify its export markets,” Gervais said.

Canada has long been a major exporter of both agriculture commodities and food, ranking fifth as a global agriculture commodity exporter and 12th as a processed and prepared food and beverage exporter in 2019.

In 2019, Canada’s total food, beverage and commodity exports were worth roughly $67 billion, an increase of almost 10 per cent since 2015. Food exports increased by 27.8 per cent. Food and beverage exports represented less than half (45.5 per cent) of the total value of the country’s agriculture, food and beverage exports.

Canada’s agri-food industry has so far been able to adjust to COVID-19 challenges and meet the needs of Canadian and export customers, yet the disruptions to global food supply chains and trade caused by the pandemic underscore the need for Canada to diversify its export markets and seize related growth and diversification advantages.

The report indicates diversification of the country’s export markets can help reduce financial risks for Canadian producers by lessening our dependency on current major markets. When borders close for any number of reasons – due to trade tensions or shock caused by disease or weather – having a broader range of export markets allows Canadian exports to be re-allocated, rather than reduced.

The potential to diversify our export landscape is a function of the size and growth of import markets where our export presence has historically lagged, according to the report:

• Of all vegetable oils, canola oil has been the fastest growing behind coconut oil. Imports largely used for consumption (as opposed to biofuel) show a definite preference for Canadian canola oil in multiple Asian and Western economies.

• Beyond China, most of the markets in which Canadian pork has an advantage are small and well-established with slow recent growth. If Chinese markets were excluded, the markets that show the greatest potential for Canadian pork exports are the European countries of Italy, France, Germany, Belgium and Poland.

• In 2019, Canada was the fourth largest exporter of potato products, worth just over $1 billion. The expansion of the Western diet globally has increased demand for French fries and potato products. While the United Kingdom is the largest and fastest growing importer, there is opportunity for expansion with other trading partners, such as Western and Eastern European countries and China.

• From 2009 to 2019, Canada has been the world’s largest exporter of prepared crab, capturing 32.8 per cent of total global exports last year. China, along with South Korea, Indonesia, Vietnam, Thailand and Hong Kong, represent a third of the global import growth.

• Global prepared and preserved beef imports grew by 58 per cent between 2009 and 2019, and China accounted for almost 40 per cent of that growth. Over the same period, Canadian exports grew by almost 125 per cent. Last year China surpassed the U.S. as the largest beef importer, including prepared and preserved beef. Other growth opportunities reside in Europe and other Asian export destinations.

While market diversification is desirable from a risk management perspective, Gervais notes there are economic challenges that can thwart efforts to diversify Canada food export markets.

“Diversification almost always entails seeking markets that are further away and more expensive to develop,” he cautions. “Plus, selling into one market – rather than multiple markets – might be less expensive due to economies of scale.”

Some price-sensitive markets may also offer limited potential for diversification, due to the higher input and manufacturing cost associated with higher-quality Canadian products, and a slower pace of economic expansion worldwide can mean more timid growth in food demand, according to Gervais.

On the flipside, diversification allows exports to continue when trade partners become unavailable, possibly preventing or reducing business disruptions or revenue loss.

“Disruptions caused by the pandemic serve as a wakeup call at a time when global supply and demand of food are also becoming increasingly difficult to gauge,” Gervais said. “Canada has an opportunity to fortify and strengthen its position as a major food exporter by exploring new markets and ensuring we are not overly reliant on a few.”

By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture achieve their goals. For more information and insights on trade and its impact on Canadian agriculture, visit the FCC Ag Economics blog post at fcc.ca/AgEconomics.

FCC is Canada’s leading agriculture and food lender, with a healthy loan portfolio of more than $38 billion. Our employees are dedicated to the future of Canadian agriculture and food. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and food industries. As a self-sustaining Crown corporation, we provide an appropriate return to our shareholder, and reinvest our profits back into the industries and communities we serve. For more information, visit fcc.ca.

CanExport SMEs offers small- and medium-sized businesses up to $75,000 to assist with international market development activities in markets where they have little to no sales. Since international travel is currently restricted due to COVID-19, these new measures will help many of the agri-food businesses continue to promote their products internationally.
These expansions are key for the thousands of small agriculture and agri-food businesses from across the country who continue trying to break into global markets amid COVID-19.

Since we opened the CanExport SMEs program to small agri-food businesses in August 2019, it has already supported 173 agricultural small businesses with over $6 million in funding.

The Government of Canada has a goal of reaching $75 billion in agri-food exports by 2025, and we are supporting our entrepreneurs in the industry to help reach that target. Through recent trade deals, agri-food businesses now have preferential access to 2/3 of the world market. We also recently launched a refresh of our Canada Brand marketing initiative to use new graphics and tools for today’s digital platforms.

Canada has the ability to be breadbasket of the world. We will continue to put in place the tools and support needed for agri-food businesses of all sizes to take advantage of the many opportunities in markets around the world.

Just as many agri-food businesses are adjusting to the lost opportunity normally offered by dozens of key trade shows abroad, the Government of Canada is adapting to deliver the support they need to marketing their high-quality products.

“Designed to provide a modernized reference to the wind rose, the new logo of the Group Export represents the Earth and its axis of rotation as well as the growth and innovation shown by the member companies that constitute its heart. Agri-food products exporters will always remain at the centre of our interventions, which are selected and implemented with their interests and needs at the forefront of our thinking”, underlines Martin Lavoie, president and CEO.

Strong in its wish to meet the evolving needs of its members, the association has also made various adjustments to ensure better readability of the logo in order to optimize its impact on new technological platforms. Furthermore, the name of the organization has been shortened in order to position more strongly its belonging to the agri-food industry.

The two-colored arrow illustrating the needle of the compass and referring to the grouping and centralization of services offers a nod to history and confirms the Group Export’s desire to build on its past successes and continue the mission in which it has excelled for three decades.

Initiated in February 2019 when André A. Coutu presided the Export Group, the brand image redesign process was interrupted in order to allow the new leadership of the Group Export to take ownership of the change and shape it to its vision. The new image was therefore finalized under the leadership of Martin Lavoie, current president and CEO, who wished to maintain the achievements in terms of notoriety and make the link between the past and the future while offering a clear symbol of renewal.

In the current context, this new image will be implemented gradually, through a remodeled brand platform, and will culminate at the start of 2021 with the launch of a revamped website, which will facilitate the Group Export’s interactions with its members on a two-way basis.

New faces on the board

To initiate the turning point marked by the launch of this new corporate identity, new directors were elected to the board of directors.

Several seats were up for election at the annual general meeting. Ms. Anne Létourneau (Fruit d´Or) was re-elected to her seat, while three newcomers were welcomed to the board of directors, namely

– Ms. Katell Burot (Carrément Tarte) – Exporter member
– Mr. Mathieu Roy (Emblem Canneberge) – Exporter member
– Ms. Lory Z. Wang (Arctica Food Group Canada Inc.) – Exporter member

The Group Export would also like to thank its outgoing directors, Mr. Jacques Bissonnette (formerly Olymel and La Milanaise), Mr. Martin Cournoyer (formerly Chocolat Lamontagne) replacing Mr. Martin Bilodeau (Gogo Quinoa) and Mr. Jacques Duhaime (Duhaime Gourmet) for their involvement and their availability to the Group Export.

A new strategic plan for redefined interventions

The annual general meeting was also an opportunity for the Group Export to make public a new strategic plan which paints a portrait of the actions to be undertaken until 2023 and which lays the foundations for an enhanced service offering aimed at facilitating market access for exporters. Even more, it concretely seeks to support the achievement of the export target of $ 14 billion of the “Politique bioalimentaire 2018-2025” of the Quebec Ministry of Agriculture, Fisheries and Food, the Group Export being one of the organizations responsible for export actions within the framework of this policy.

Through this new planning, the Group Export team wishes to show increased agility in its support to its members, a notion that will become all the more important in a context of economic and export recovery. As Mr. Lavoie mentions, “while it is currently difficult to anticipate the business environment for agri-food exports and to know what the needs will be at the end of this troubled period, it is clear that those will be increased and changing”.

A Personalized Advisory Program

This particular situation was therefore the perfect moment to announce the forthcoming implementation of a new personalized export diversification and advisory program. Indeed, during the month of October 2020, the Zenith program will be launched, a turnkey solution based on a precise analysis approach combined with a proven methodology. The Zenith program will enable the Group Export to materialize a new field approach to internationalization tailored to its member companies.

Bouncing back on these new stepping stones, the Group Export is ready to tackle the next 30 years with energy, conviction and commitment.

About the Export Group

With over 500 members, Group Export is the largest association of agri-food exporters in Canada. Created in 1990, the Association has, over the years, developed several services and initiated hundreds of activities to facilitate market access outside Quebec and internationally for agri-food exporters in Quebec. A privileged link between exporters and markets, an essential bridge between the public sector and industry, the Association works daily to increase the presence of Quebec products around the world.

Here are some of the programs currently available for registration; for a full listing, please visit here.

The Alizés Awards celebrate the excellence of the work accomplished by Canadian agri-food companies that have distinguished themselves in international markets and are presented by FCC, the event’s lead partner. Taking into account the health measures currently to be observed, the winners will be virtually unveiled, on the web, on September 29, 2020, on the sidelines of SIAL Canada 2020.

At the end of the deliberations, the jury selected three finalists for each of the two categories, proudly representing the expertise of exporting companies in the Canadian agri-food industry. “The innovation demonstrated by companies, both in adapting their products for new markets and in developing international strategies, greatly impressed the jury” explains Mr. Louis Turcotte, jury’s chairperson and Senior Director, Corporate and commercial financing at FCC. “We were also blown away to see how clear the vision of Canadian exporters is and how they showcase a strong commitment to their development and growth.”

Category | Small to medium-sized enterprise

• BioNeutra, Alberta

Founded in 2003, BioNeutra markets VitaFiber , the company’s leading product. Obtained by transforming starch molecules from local grain crops into functional health molecules, the product provides dietary fibre and is a nutritious sweetener. Committed to meeting the needs of consumers, the company uses science-based processes and applies them to the commercial product market. With rapid growth, differentiated products and sustained efforts to obtain accreditation in many countries, BioNeutra was able to please the jury.

• Rustica Foods, Quebec –  From a small family business in 2000, it has grown into a well-established pizza manufacturing plant equipped with state-of-the-art custom production equipment. In addition to creating products that stand out in the market and being the leader in its sector, Rustica Foods is committed to achieving excellence at all levels in order to exceed the expectations of its customers. With a well-defined export development strategy, a wide variety of products, an excellent understanding of consumers, Rustica Foods was able to capture the attention of the jury.

• Schep’s Bakeries, Ontario – Schep’s Bakeries, a family business, is the only manufacturer of stroopwafels (literally waffles in syrup) in North America. The company now sells its products baked according to tradition in several large retail stores, and hundreds of thousands of stroopwafels are sold in the United States each year. With a high percentage of its sales abroad, Schep’s Bakeries diversified its markets thanks to its monitoring skills and adaptation strategies which won over the jury.

Category | Large company

• Bio Biscuit, Quebec –  As a family business specializing in the manufacturing of oven-baked biscuits, treats and food for dogs and cats, Bio Biscuit has been offering, for more than 20 years, high-end products designed by a team of animal nutrition specialists. Respecting the best quality criteria is a strong value at Bio Biscuit, both in the choice of ingredients and during the manufacturing process. The jury greatly appreciated Bio Biscuit’s highly effective market adaptation strategy, which provides stability and growth in more than twenty markets, both established and emerging.

• Clearwater Seafoods, Nova Scotia – Clearwater Seafoods is one of the largest vertically integrated seafood companies in North America. Owner of offices, processing plants and vessels, Clearwater operates on an ocean-to-plate basis with a focus on sustainability, a core value expressed in its practices, such as healthy oceans and responsible fishing. Recognized worldwide for the superior quality of its wild seafood, Clearwater Seafoods impressed the jury with the diversity of its export markets and its ability to consolidate markets.

• Fruit d’Or, Quebec – A leader in berry processing, Fruit d´Or is the world’s number one producer of organic cranberries and the second-largest processor of organic wild blueberries. Its superior quality products are popular in the food, nutraceuticals and cosmetics sectors, demonstrating that it is possible to combine organic agriculture and cutting-edge technology. With a clear deployment strategy and precise objectives, Fruit d’Or was able to secure a choice position in foreign markets, which particularly pleased the jury.

Jury members:

Louis Turcotte (jury’s Chairperson) Senior Director Agribusiness and Agri-Food FCC

Miriam Feltham-Lauzon, M.Sc. Senior Associate | Global Trade – Consumer  Export Development Canada

Martin Lemire RD, MA Vice-President EDIKOM, L’Actualité Alimentaire, Dux, Les Prix GAÏA, Le Must Magazine

Geneviève Marcotte Executive Director  Missions commerciales de l’Université Laval

Marie-Claude Massicotte Acting Deputy Director Agriculture and Agri-Food Canada

On September 29, an Alizé will therefore be awarded to a company for each category during a virtual unveiling broadcast on the website www.lesprizalizesawards.ca. Indeed, even if current circumstances do not allow the usual gathering, the Export Group wants to promote and congratulate companies that stand out on international markets.

Specifically, an investment of $625,419 will support Les Jardins A. Guérin et Fils, Inc. (JAG) in optimizing growing techniques and performing market testing as they implement a new model for the year-round production of organic, greenhouse-grown radishes, the first operation of its kind in Canada. Domestic availability of locally grown, organic radishes, year-round, will reduce the need for imports by providing a new product offering for the Canadian agri-food sector, and create new export opportunities. JAG’s year-round production will help offset imports of radishes from Mexico and Southern California which were valued at approximately $18.6 million. Once complete, this project is expected to generate $1.3 million in revenue with the production of 460,000 pallets.

Meanwhile, an investment of more than $1.5 million will be made to support onion producer Onipro with the adoption of optical scanning technology that will increase productivity and reduce loss, while also ensuring the highest quality product possible. This will be the first time such technology has been used in Canada’s onion sector, allowing growers to ramp up production to meet growing demand, lower costs, and increase exports. As a result of this project, onions can now be traced back to their points of origin for food safety and security purposes. This project is expected to increase production by 30 per cent within the next five years. It is hoped that this technology will increase onion production in that same time period from 58 million pounds annually to 76.5 million pounds, increasing Onipro’s competitiveness in both domestic and export markets.

These contributions further demonstrate the Government of Canada’s commitment to investing in innovation and growth in the agriculture and agri-food sector, and to helping Canadian farmers and businesses produce sustainable, world-class products.

Quick facts

• The funding will be delivered by Agriculture and Agri-Food Canada’s AgriInnovate program.
• The AgriInnovate program aims to accelerate the commercialization, adoption and/or demonstration of innovative products, technologies, processes or services that increase sector competitiveness and sustainability.
• Onipro, founded in 1963, is the largest fresh onion packer in Quebec. It was incorporated as a co-operative in 1990, and is owned by 12 field-grown onion producers. It is supported and co-owned by Groupe Vegco, Inc.
• Founded in 1983, JAG is a family owned producer of radishes, onions, and carrots. The company’s primary facility is located in Sherrington, Quebec.
• JAG’s radishes currently comprise 29 per cent of Canadian radish production and 47 per cent of Quebec production.
• JAG acquired organic certification for its radishes in November 2018.

The scotch is the signature expression of the brand’s Sherry Oak portfolio. With sherry-seasoned casks representing a key pillar in The Macallan’s DNA, the brand has seen soaring demand across the country for the return of this scarce marque, and is pleased to respond with national availability.

”It is beyond exciting to see the return of such an iconic single malt to Canada. The Macallan Sherry Oak 12 Years Old is beloved by aficionados all over the world for its rich mouthfeel and complex flavours of spices and dried fruits but, given the scarcity of the exceptional oak casks used in its production, it has only been available in rare supply in recent years,” says Nicolas Villalon, Edrington area manager for Eastern Canada.

“We are incredibly grateful to offer it once again, albeit in limited quantities, to the Canadian connoisseurs whose appreciation for our scotch whisky has been unwavering.”

The scotch is heavily influenced by the sherry seasoned European oak casks that have been intrinsically tied to The Macallan since its founding in 1824. The hand-picked casks, hailing from Jerez, Spain, are rare and require a significantly larger investment than ex-bourbon casks, as each barrel is coopered specifically to The Macallan’s standards.

The scotch will be available in 750-millilitre bottles at a suggested retail price of $149.95. Prices will vary by market and are subject to applicable taxes.

“Flow shares this news with an attitude of gratitude,” says Reichenbach. “The financial markets  have never been more dynamic and our investors’ commitment to Flow at this time is a testament to the brand’s strength and potential. Flow in 2020 is focused on core asset growth within the U.S., and job creation within our organization and for our partners in distribution and retail.”

Investors in this financing round include: Shawn Mendes, an ongoing partner and sustainability  ambassador to Flow, and his manager Andrew Gertler, both leading the round with Post  Malone and his manager Austin Rosen, Coldplay’s longtime manager Dave Holmes, former  professional baseball star Chase Utley, and former Uber director of engineering Curtis Chambers. Institutional investors in this round include Ruttenberg Gordon Investments.

“We’ve brought together a mix of personalities from the worlds of technology, sports, and entertainment – three elements of the connectivity that builds an iconic brand,” says Reichenbach. The investors will take a minority stake in Flow, a B-Corp certified company, with representatives appointed to Flow’s board of advisors.

The packaged water market is evolving, and Flow is hoping to lead that evolution in regards to consumer taste preference and environmental impact. Flow aims to sell more than 100 million packs in 2020, expecting to double its current consumer base of 10 million consumers to 20 million, and enter 2021 with an outlook of owning 10-per-cent market share of the country’s 189 million premium water buyers.

The company’s alkaline mineral water comes from proprietary natural artesian spring water sources in Seawright Springs, Virginia, and Ontario.

Flow offers naturally alkaline spring water in a range of flavours. All Flow waters are packaged in Tetra-Pak®, produced from renewable wood fibre and an increasingly viable alternative to plastic containers. In 2020, Flow is also transitioning to TetraPak’s new packaging composed of +/-75-per cent renewable material.

The rushed coming into force of the new Canada-United States-Mexico Agreement (CUSMA) on July 1, 2020 is another win for Trump – one that severely undermines Canada’s ability to maintain a strong, dynamic dairy sector that provides fresh, local, safe milk and dairy products to Canadians in communities across the country, the statement says.

“When I left a meeting with the Prime Minister in February, I thought he understood that a shortened implementation period of the dairy concessions – now only 31 days – was not what Canada negotiated,” said Rob Goodwill, chair of Gay Lea Foods.

“I also understood that the Government of Canada had committed to no further concessions on dairy and supply management in trade agreements. Now we have suffered yet another hit when we are putting all our efforts on-farm and across the sector into producing safe dairy products for Canadians during a global pandemic crisis.”

Michael Barrett, president and CEO of Gay Lea Foods, stated that, “In order to sustain the needed supply of butter, cheese, yogourt and other dairy products for Canadians, our industry must also find a market for the remaining milk components. The market viability of these components will now be limited under CUSMA, putting significant pressure on Canada’s dairy industry.”

According to the statement, the Government of Canada has made repeated commitments to full and fair compensation for dairy processors and producers in response to both the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and CUSMA market loss, and processors have been waiting for this compensation plan since 2018.

Gay Lea Foods said it calls on the prime minister to urgently convene a meeting with dairy industry leaders to confirm the action plan to ensure Canada continues to have a viable, functioning dairy sector.

Gay Lea Foods is a 100-per-cent Canadian-owned and operated dairy co-operative with members on 1,400 dairy farms in Ontario and Manitoba, and more than 1,000 employees across Canada.

As such, the two organizations say they are echoing the concerns expressed by Senate Opposition Leader Don Plett, who indicated that he had a commitment from the government on the date.

The joint statement says that the dairy sector had secured the support of parliamentarians to have CUSMA come into force in conjunction with the beginning of the dairy year on Aug. 1, 2020. This would have allowed the sector a full 12 months of exports per the negotiated concession for the year-one threshold limit on key dairy products, before being constrained by the significant reduction conceded in year two of the agreement.

As part of CUSMA, Canada not only transferred to the U.S. part of its domestic dairy production, but it also agreed to self-imposed limits on exports of key dairy products.
“Our government was first out of the gate to give notice to the other parties that it was ready to implement CUSMA,” said Jacques Lefebvre, CEO of Dairy Farmers of Canada. “The dairy sector was informed at the last minute and judging by the reaction from the Opposition parties, we weren’t alone in this being a complete surprise.”

The federal government proceeded to reassure the sector, said Mathieu Frigon, president of the Dairy Processors Association of Canada.

“It told us not to worry, Canada had to send a signal to the U.S. administration that it was committed to CUSMA, but that both the U.S. and Mexico were nowhere close to being able to give notice, thus we shouldn’t be concerned about an early implementation date.”

The joint statement says that the impact of yet another concession on dairy to the U.S. on the part of the federal government is significant. By coming into force before the start of the dairy year on Aug. 1, 2020, the first-year export cap and access volume will apply immediately and for just a few weeks before a significantly lower second-year export cap is triggered, and significantly more volume is imported into Canada.

That means an almost 40-per-cent reduction in exports being imposed on the Canadian dairy sector as it is focused on ensuring a continued supply of fresh, local dairy products for Canadians.

The statement says that, for dairy producers and processors, the early implementation by one month of CUSMA is estimated to represent up to $100 million in losses. Furthermore, the sector will need to contend with an additional $330 million in annual perpetual losses as a result of the lost market share.

DPAC is Canada’s national industry association representing the public policy and regulatory interests of the Canadian dairy processing industry. DPAC’s members represent some of the most recognized brands in Canada, providing work to more than 23,000 Canadians and contributing $17.3 billion to the national economy.

DFC is the national policy, lobbying and promotional organization representing Canadian dairy producers. DFC strives to create stable conditions for the dairy sector and seeks to maintain policies that promote the sustainability of Canadian dairy production and promote dairy products and their health benefits.

Canada was the last of the three signatories to formally adopt the pact, prompting congratulations from the United States and Mexico.

The House of Commons lower chamber, which had weeks of deliberations left, agreed the instant approval on March 13 after opposition legislators dropped their objections. The upper Senate chamber backed the pact later in the day, Deputy Prime Minister Chrystia Freeland told reporters.

Governor General Julie Payette — as representative of Queen Elizabeth, Canada’s head of state — formalized the implementation bill with royal assent later Friday. The Commons agreed Friday to adjourn until April 20.

CUSMA was designed to replace the North American Free Trade Agreement (NAFTA), which U.S. President Donald Trump strongly opposed on the grounds it had cost hundreds of thousands of American jobs.

“Now that the USMCA has been approved by all three countries, an historic new chapter for North American trade has begun,” U.S. Trade Representative Robert Lighthizer said in a statement, referring to the same pact by a re-ordered name.

In a letter to the U.S. Congress on Wednesday, Lighthizer sent notice of an in-force date of June 1 for CUSMA, according to a spokesman for the Senate finance committee, which oversees tax and trade issues.

Mexican President Andres Manuel Lopez Obrador said the approval was good news for Mexico at a time of economic and financial instability.

“With the Parliamentary suspension due to the spread of COVID-19, Canadian beef producers are grateful to all Parliamentarians for working together” to pass the bill, Bob Lowe, president of the Canadian Cattlemen’s Association, said in a statement Friday.

The CCA noted the bill continues “reciprocal duty-free trade” between the signing countries and includes a section “highlighting the commitment to not disrupt trade through labelling” — a reference to mandatory country-of-origin labelling (COOL) legislation which the United States put in place in 2009 and scrapped in 2015 under threat of retaliatory tariffs.

Apart from continued tariff-free access for many ag exports, the Canadian Agri-Food Trade Alliance (CAFTA) on Friday also noted CUSMA provides for “meaningful progress on regulatory alignment and co-operation” and continued “fair and transparent dispute resolution provisions.”

CUSMA also provides for improved market access by way of increased quotas for refined sugar and sugar-containing products, as well as gains for some oilseed products, CAFTA said.

— Reporting for Reuters by David Ljunggren in Ottawa; additional reporting by David Lawder in Washington. Includes files from Glacier FarmMedia Network staff.

“The revolution to eliminate single-use plastic waste is catching on worldwide and we love that Canadian retailers are embracing the need for a sustainable solution,” Shadi Bakour, CEO and co-founder of PATHWATER, said in a press release.

“As a leader in the eco-friendly water space, we are on a mission to break the world’s single-use, plastic, bottled water addiction and are excited to expand our consumer reach to Canada.”

PATHWATER’s pH-balanced and electrolyte-infused still water is housed in a white brushed-aluminum bottle to encourage continuous reuse and refilling. The texture and aluminum composition of the bottle makes it ideal for carrying on the go and repurposing and reusing throughout daily life.

PATHWATER’s still water formulation works in harmony with the body’s natural pH-levels, while offering electrolytes for added functional benefit.

“We are excited that PATHWATER has chosen Hilary’s as the exclusive distribution partner for the Canadian market,” stated David Yuranyi, vice president of development at Hilary’s Salesmaster Inc. “We believe that PATHWATER is on the forefront of innovation and we will work tirelessly to represent the brand.”

PATHWATER bottles are filled with water that is ultra-purified through a seven-step reverse osmosis process. It is free from any impurities, providing consumers with balanced hydration.

Hilary’s Salesmaster has a strong national presence in the Canadian retail market. The company handles all regulatory, labeling, marketing and full distribution from its 80,000-square-foot facility just north of Toronto.