February 12, 2010 

 

February Meeting Updates:

  POTC    Plenary Meetings    Board of Directors    Poultry    Turkey   Chicken    Egg Further Processing   Egg Grading    CHF

CFC Meeting February 3, 2010

Agriculture Ministers Focus On The Economy, Growth And Market Opportunities For Canadian Producers

Sunrise Farms Enters the Alberta Turkey Industry

Conferences, Courses and Workshops

 

February Meeting Updates

POTC Meetings – The usual group of poultry processing representatives travelled to Ottawa for the POTC meeting on February 4 and 5. A CFIA delegation of four joined the group in the afternoon of February 4 for update presentations.

In March, CFIA resources will be allocated toward reassessing the pilot plants in BC and Quebec participating in the Poultry Rejection Project and perhaps beginning new ones to gather additional data –an action that demonstrates CFIA’s continued support of the PRP.

The Food Safety Enhancement Program draft manual has now been released to industry for review. A CPEPC subcommittee contributed to a pre-consultation version before Christmas and this draft is the result. Members’ comments will be accepted via CPEPC and then forwarded to CFIA with the final draft anticipated for release in April. The FSEP manual will be formally introduced to all industry stakeholders through a series of cross-country industry workshop days later in the year.

The allowance for kidneys in poultry continues to move along. Amendments to the regulations will be the most efficient if separated into three regulatory amendment applications, beginning with the easiest and therefore quickest amendment which is to propose an increased weight limit for “young” chicken. Secondly will be a regulatory amendment to allow kidney in whole birds of all species and weights and thirdly to allow kidney tissue in mechanically separated meat. CPEPC continues to work closely with CFIA to provide the requested information for the regulatory amendment application process.

Canadian processors and CFIA continue to await the anticipated US FSIS Salmonella performance standards before finalizing a domestic policy. Industry should anticipate tighter microbiological criteria from our trading neighbours and imported products will be expected to meet any US domestic criteria. CPEPC has been collaborating with CFIA throughout the development of the draft policy.

A subcommittee made up of CPEPC representatives along with catching, transportation, producers and academia will embark to draft of a supply chain guidance document for animal care and welfare. Contents will build on much of the great work already completed in different links in the supply chain to build one guidance document for the poultry supply chain.

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Plenary Meetings – In conjunction with this year’s February Sectoral meetings, attendees were invited to an overview session on Canadian Competition Law from Rob Kwinter, a partner in the firm Blake, Cassels & Graydon LLP. Rob’s presentation focused on the upcoming changes to the Competition Guidelines and what they will mean to our members, particularly given our supply management environment. In addition, specific questions on activities at egg, chicken and turkey sectors were posed and answered. Processor members have been given the password and link to Rob’s presentation which is posted on CPEPC’s website.

In addition, we also heard from Frank Van Gool, Intersol’s lead on the Industry Association Synergy Project. The final report is out and Mr. Van Gool gave attendees a summary of its contents. The report is very good and all members are urged to read it. It highlights the benefits of working together with CMC & FPPAC and offers options regarding how our three organizations could coordinate some of our efforts and functions as well as increasing our scale and therefore our voice as advocates for the industry with government, etc. Within the report, Intersol outlines 5 potential options (from status quo to full blown merger of the organizations and some in between) that could be adopted going forward. It notes the benefits and risks, along with high level costs associated with these options. Intersol has also made a recommendation. At our Board of Directors meeting on February 9th, Directors decided on next steps which, in keeping with our sectoral management governance, will include gathering input from members in each sector, reviewing this information at an upcoming Board meeting in March, and putting a recommendation back to the members in each sector for consideration by April. Our final goal is a CPEPC "mandate" that we know has good grass roots acceptance and that we can table for approval at the AGM in June in Saskatoon.

Members in each sector will receive more information regarding how to access the report, and timelines for input to their Sector Chairs and Manager. Any member with additional questions is urged to contact Robin Horel at Council office.

Board of Directors – In addition to the discussion and determination on next steps for the Association Synergy Project already noted above, the Board also discussed plans for our upcoming Convention being held at the Delta Bessborough in Saskatoon from June 6th – 9th. The financial report was reviewed and a preliminary budget for 2010/11 was adopted along with an agreement on a small increase in fees for the new fiscal year. Members will receive invoices for fees in March.

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Poultry – Members from three of Council’s six sectors – primary chicken, primary turkey and poultry further processing, met to discuss topics that affect all poultry processing members. The attendees heard presentations from: Erica Charlton, Council’s Technical Director, who reviewed the major issues discussed at the POTC meeting (these items are reported elsewhere in Highlighter under the POTC review section) and Guy Giroux, Keltie Findlay Leclair and Ann Marie Broadbent from International Trade Canada who updated attendees on the chicken and turkey TRQ usage and issues and on the IREP program.

In addition to these presentations, attendees received an update from staff on Canada’s AI surveillance program (CanNAISS) including the launch of the Hatchery Supply Flock component. An overview of the Industry / CFIA post mortem meeting on the 2009 AI incident in BC as well as CFIA’s new draft H1N1policy rounded out the technical issues discussed.

CPEPC chicken and turkey members have agreed that food safety be considered a non-competitive issue with regard to promotion, advertising and labeling. Further work regarding whether this position can be made more proactive (potential agreement on sharing of best practices, establishing a Code of Practice, liaison with other like minded organizations and potential to establish a network for sharing of best practices, etc.) has been referred to CPEPC staff for further analysis and recommendation.

Elections for CPEPC Directors reconfirmed René Proulx & Reg Cliche from Chicken Sector, Ed Rodenburg & Craig Richardson from Poultry Further Processing Sector and Jeff McDowell & Craig Evans from Turkey Sector. Jamie Falcao and Yvan Brodeur were re-elected as TQAC representatives and will be joined by newly elected representative, Paul Borg. Members were pleased to again have Bill Smirle, Chair of Farm Products Council of Canada (FPCC) attend their meeting in its entirety. CPEPC expressed its gratitude for Bill’s efforts and leadership for the good of all industry stakeholders, over the past few years. We will miss him as he is affected by the forced age retirement provision in the Farm Products Agencies Act.

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Turkey – All turkey sector member companies attended the turkey sector meeting. Mr. Smirle from FPCC also attended the meeting. Ongoing issues with the wholesale market and discussions about the Canadian turkey supply chain dominated the agenda. Members approved a plan to provide CPEPC staff with ongoing data through survey that will be collated and used to assist industry better determine the supply of product needed for both the bagged and further processed markets. This information along with the work that has been done on establishing market indicator benchmarks on a periodic basis throughout the year is seen as the best way to move forward. Members also reviewed the process that TFC has embarked on to get the allocation regulations, including audit and penalty provisions, in place as soon as possible. Turkey sector agreed on CPEPC input into TFC’s strategic plan and staff was mandated with conveying that to the Agency.

Elections resulted in Christian Chevrier (Director East) and Wayne Urbonas (Alternate West) being re-elected as our representatives to the TFC Board. In addition, Christian Chevrier, Gary Martin & Wayne Urbonas were re-elected as representatives from their various regions to the Turkey Market Advisory Committee (TMAC) at TFC.

Chicken – The Chicken Sector of CPEPC met on Tuesday February 9, 2010 with representatives from all but one member in attendance.

The members heard a presentation from Farm Products Council of Canada Chair, William Smirle on the final report of the Oversight Committee and of the comments FPCC heard during its recently completed Trans Canada tour meetings with producers and processors in each province. Mr. Smirle explained that he would be presenting a written report to FPCC members later in the week and subject to their acceptance of that report it will be presented to the Minister of Agriculture and Agri-Food and then circulated to industry. Mr. Smirle’s term as Chair of FPCC will expire in February and the sector members expressed their heart felt appreciation for Mr. Smirle’s leadership and tireless work to improve Canada’s supply management chicken system during his tenure.

A number of items on the agenda of Chicken Farmers of Canada effecting processors were discussed. These included; CFC committee membership, CFC’s Production Policy Committee work-plan, market development program review, processor margin, and differential growth. In the afternoon the Executive and senior staff of the CFC joined the meeting as is customary at the CPEPC February meeting. A productive exchange between the CFC leadership and CPEPC members occurred on a number of items including items related to allocation setting, including the report card and processor margin, and on matters related to the FPCC including the judicial review applications and quota allocation approval indicators. Members also discussed items related to the EMI wholesale price series as well as the AgriStats processor cost model.

Annual elections were held for CPEPC Director and Alternate on the CFC Board. Reg Cliche and Lucy McKee were re-elected to Director and Alternate positions respectively.

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Egg Further Processing – All member companies were present at the egg further processing sector meeting. The principal issue discussed was the contract negotiations between the sector's Processor Advisory Committee (PAC) and the Egg Farmers of Canada (EFC) Executive Committee. Both sides met in Toronto on January 18th and members were updated on outcomes of the meeting. PAC and the EFC Executive departed the meeting with a renewed sense of a need to work cooperatively toward common goals addressing the long term solutions to the current system’s shortfalls. The 2010 Pooled Income Fund (PIF) opening balance was $33 million compared to the 2009 opening of $ 66.4 million with a forecasted closing of $24.6 million. Members continued to discuss concerns associated with the ongoing trend of the short supply of domestic eggs and the heavy reliance on imports to meet current market demands. The Canadian Food Inspection Agency delegation provided an update on the member initiated regulatory change request to lower the Canadian solids standard for whole egg to the internationally recognized standard adopted by the International Egg Commission. Members acknowledged CFIA delegation’s effort on this file.

Elections resulted in Mike Vanderpol re-elected as Sector Chair and Director to the EFC Board. CPEPC’s Egg Processing Tariff Quota Advisory Committee representatives for the 2010/11 term will be Ian McFall and Aaron Kwinter.

Egg Grading – As customary, every region of the country was well represented with the majority of members in attendance. The agenda provided for delegations from Egg Farmers of Canada (EFC), the Canadian Food Inspection Agency (CFIA) and the Export Import Control Board (EICB). EFC delegates updated members with the status of the Transportation Project in Western Canada. Members fully support EFC’s efforts to reduce costs to the system. To ensure minimal disruption during transition, a discussion with EFC ensued on measures to mitigate foreseeable problems that may arise with outsourcing transportation. EFC invited CPEPC and other impacted stakeholders to participate in their work on an Egg Traceability Program. Similar to the egg further processors, the egg grading sector members have to rely on imports to meet the current table market demand. CFIA delegation provided members with an update on the proposed changes to the HACCP guidelines. EICB’s Keltie Finlay-Leclair provided a breakdown of the Tariff Rate Quota allocation 2009 usage and 2010 volumes. The meeting concluded with a discussion on the final report on the Association Synergy Project and the sector plan on building a consensus position for CPEPC’s Board of Directors consideration.

Elections resulted in Scott Brookshaw replacing Bill Gray as the Director to the EFC Board. CPEPC’s Egg Grading Tariff Quota Advisory Committee representatives for the 2010/11 term will be Bill Gray and Muneer Gilani.

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Hatchery – The Canadian Hatchery Federation (CHF) met on February 9th. Attendees heard an update from Brent Montgomery, FPCC’s Vice Chair, who attended the meeting in its entirety. Many technical issues were discussed including on farm broiler surveillance and hatchery salmonella surveillance under the CIPARS program; an update on IBH; and a review of CFIA’s H1N1 draft policy along with a birds eye view of how to deal with H1N1 from one of our members who has experienced it personally. Dr. Teresa Cereno, Head of Hatchery Programs at CFIA gave an update and summary of the initiatives she has been working on since taking the position last fall. CHF members welcomed Dr. Cereno’s approach and look forward to a renewed working relationship with CFIA on many of the projects that have lied dormant over the past couple of years. Attendees were given an update on the Hatchery Supply Flock component of CanNAISS and reminded of the importance of timely communication with CFIA regarding supply flock information needed to ensure the sampling is done correctly and according to protocol.

Hatching Egg & Chick TRQ utilization and information was provided by Guy Giroux, who joined the meeting from International Trade Canada. A proposal to change the procedures for supplementary imports, presented by CHEP, was debated by members and discussed with a delegation from CHEP and with Mr. Giroux. The CHEP delegates included Giuseppe Caminiti, who members were pleased to see again in his new role, along with Viki Sikur. In addition to the proposed changes to the Supp. Policy, Giuseppe and Viki gave members an update on their FPA, compensation in the event of AI, trade issues, some summary data for 2009 and animal welfare, CPRC and other technical issues. CHF and CHEP have agreed in principle with a CFC proposal to establish an industry working group on AMR / AMU.

Rounding out the meeting was an update on CPEPC’s work to hire a replacement Hatchery and Turkey Sector Manager, in depth discussion on the Synergy project and agreed to next steps for CHF, discussion about the upcoming convention in Saskatoon and Regional Representative reports. Speaking of Regional Representatives, the slate remains unchanged for broiler and turkey hatcheries. A conference call will be scheduled in the near future for leghorn hatcheries to determine their Regional Representative as well as the Director to the Egg Farmers of Canada. Tom Fleming – Director and Ernie Silveri – Alternate were re-elected to the CHEP Board. An election resulted in Rick Weiss becoming CHF’s new Chair and Gerry Kennie the Vice Chair for the new year.

 

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CFC Meeting February 3, 2010

Chicken Farmers of Canada held its first meeting of 2010 on February 3, 2010. The domestic allocation for period A-98 (May 23 – July 17, 2010) was established during these meetings at Base plus 2.0 percent or 152.95 mkgs along with 9.3 mkgs for Market Development production. The domestic allocation represents an increase of 1.7 percent over actual production during the same weeks of 2009. The CPEPC had recommended an allocation equal to Base as history over the past several years shows the market is growing at just over 1 percent on average and in consideration of both A-96 and A-97 being set above this level at Base plus 2 percent. Market indicators however improved between when the CPEPC had submitted its recommendation of Base and the time of the CFC meeting and while still apprehensive regarding the ability of the market to absorb an increase of 2 percent, the CPEPC directors supported the motion to set the allocation making it a unanimous one.

Also on the agenda was further discussion on the Report Card and in particular, the development of a healthy range for the Processor Margin component. In an effort to advance this issue and remove misunderstandings and apprehension on the part of provincial boards, CPEPC offered to meet with any provincial board that would be interested and have an in-depth “kitchen table” discussion regarding the Processor Margin and related aspects of the Report Card and mid-term Growth Target concepts. This offer was readily accepted by most provinces and meetings will be scheduled in the spring.

Discussion continued as well on the development of a Differential Growth policy. Some provinces continued to express a lack of support for a policy indicating they have not been convinced that there is a need for one and that they could not support any of the proposals made to date. While a majority of provinces continue to support the need for a differential growth policy, the unanimous support of all provinces would be required in order to approve such a policy. The CFC Executive will be considering next steps and it is expected that this issue will again be on the agenda for the next CFC meeting in March.

 

Agriculture Ministers Focus On The Economy, Growth And Market Opportunities For Canadian Producers

Federal, provincial and territorial Ministers of Agriculture met February 5 on a range of issues critical to the long term success of farmers and the agricultural and agri-food sector across the country.

The meeting, co-chaired by the Honourable Gerry Ritz, federal Minister of Agriculture, and the Honourable Bob Bjornerud, Saskatchewan's Minister of Agriculture, focused on the economic situation, the competitiveness of the sector and ongoing efforts to strengthen Canada's food safety and livestock traceability systems.

"Canadian agricultural products are among the best in the world," said Minister Ritz. "With the Market Access Secretariat now fully up and running, we are working with provinces and territories, and with industry, to identify their market priorities, both domestically and abroad, to ensure we seize every opportunity to sell our products."

Ministers discussed the Business Risk Management (BRM) strategic review, recognizing the need to look to the future. FPT governments will initiate consultations with producers and agricultural groups on the challenges facing the sector, BRM programs and the opportunities that lie ahead. The results of those consultations will be reported back to Ministers at their next meeting.

"Governments have a responsibility to listen to producers," Minister Bjornerud said. "Farmers and ranchers are the first people impacted by the policy and programs we create. We need to engage our producers as we work to improve our Business Risk Management programming."

Governments are also determined to ensure that programs continue to respond to the sector’s needs, including the examination of options such as livestock insurance, to help producers secure a stable and prosperous future.

The federal, provincial and territorial agriculture ministers will hold their annual meeting in Saskatoon, Saskatchewan, July 6-8, 2010.

from AAFC News Release

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Sunrise Farms Enters the Alberta Turkey Industry

The Board of Directors of the Alberta Turkey Producers is pleased to announce that Sunrise Farms will be entering the turkey processing business. Starting with the 2010/11 quota year Alberta will have three federally inspected plants to handle turkey production from licensed Alberta farms. Two of these plants will be handling commercial production while the third operates primarily as an organic processing plant.

Sunrise Farms is a major processor of chicken in both Alberta and British Columbia. Sunrise operates several processing plants in British Columbia and one facility in Lethbridge, Alberta.

Alberta Turkey Producers Press Release

 

Conferences, Courses and Workshops

  VIV Europe 2010 takes place April 20 - 22, 2010 at Jaarbeurs Utrecht, Jaarbeursplein, 3521 AL Utrecht, The Netherlands.  Locations for companies that are of interest to CPEPC members are as follows:  ISA - 11B.014; Pas Reform - 7C.051; Hybrid Turkeys - 11B.014; Morris Hatchery - 11A.042; Pfizer - 8A.058; Stork Netherlands - 7D.008; Meyn Netherlands - 7A.124; Staalkat Netherlands - 07D.096; World Poultry Science Association - 7E-085.  Full preliminary list of exhibitors.

  Centrex will be presented by the Manitoba Hotel Association and the Manitoba Restaurant & Foodservices Association April 11 and 12, 2010 at the Winnipeg Convention Centre.  more than 2,300 managers, staff and owners from Manitoba hotels and restaurants will visit Centrex.  Booths over 70% sold.  Call Ryan Kirkness, Sales Manager, at (204) 942-0671 or 1-888-859-9976.

 

Next Highlighter edition will be March 5 to accommodate staff vacations

 

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