The organization has created and launched the Canadian Beef Centre of Excellence and has successfully provided a marketable identity to the Canadian Beef brand. But like all organizations growing pains ensue and Canada Beef is not immune. President Rob Meijer announced his departure in 2016 and with that came the conclusion of what Ron Glaser, Vice President of Corporate Affairs, Canada Beef, calls Phase One. Now they are ready for the launch of Phase Two.
Canadian Meat Business spoke with Ron Glaser about the exciting and bumpy road ahead that will be 2017.
“The industry itself has been in an interesting cycle and we’re looking forward to the Canadian beef herds’ growth over the next few years”
CMB: Let’s start with the check-off hike to $2.50 that was agreed on but is now stalled pending a review of the Alberta provincial levy.
RG: When the check-off was first being collected every province had its own set of regulations. The National Check-Off came later and was built on top of these provincial regulation mechanisms. So, therefore, to increase the National Check-Off (currently set at $1 per head) up to $2.50 per head we must work with every province and make individual agreements with each of those jurisdictions in order to amend the National Check-Off. So there is this matrix of regulation that has to be updated and changed. It is a long process and it’s not as simple as a single swipe of the pen on one agreement.
CMB: Do you think the new National Check-Off will come into effect in 2017?
RG: Yes. Once we have all the provincial agreements signed then the check-off increase can be applied to the import levy on beef products imported into Canada. But the import levy is automatically at the lowest level of check-off within Canada. So, subsequently, as each of the provinces come on board you’ll see the increases in those regions then it can be applied to the import levy, and then the check-off would be the same across the country. So, for our purposes we’re anticipating the increases to come online through this next fiscal period from April 2017 to March 2018. Next year we have that base budget, based off of the $1 checkoff, but we do have a contingency budget in place for increased investment when that predicted revenue starts to flow.
CMB: What are some of the components to the deals that slow the process?
RG: Every region has its own particular process. Some producer cattle associations can implement the check-off on their own. Others have to have regulations updated with their provincial governments. Of course the turnaround then depends how efficiently you can work with those governments and when they’re able to pass those regulation amendments.
CMB: How many provinces have actually signed off?
RG: Currently we have one province that is prepared to sign the increase check-off and that is Nova Scotia. We’re anticipating that most of the other provinces will be coming online through the spring and into the summer this year. So, it’s important to note we’re not stalled per se because the process is going forward as quickly as can be expected given the jurisdiction and regulative changes.
CMB: Can we touch on trade because what Canada Beef does is so integrated with trade opportunity? What are the current concerns with the Trump administration and how have they played a part in your marketing plans for this year?
RG: That’s a good question and let me give some background. Canada Beef is strictly the marketing group for Canada’s beef industry. We are setup distinctly from the groups like the Canadian Cattlemen’s Association (CCA), Canadian Meat Council (CMC), the National Cattle Feeders Association, and others that participate in trade negotiations and set policy in the industry. We don’t get involved with lobbying or policy review and development, but as the marketing arm, we provide market intelligence and opportunities with those policy maker groups. For our beef sector, it’s primarily the CCA that takes that lead on deals like TPP, CETA, NAFTA, etc. Now, that being said, Canada generally has good trade access globally for our Canadian beef products, albeit some deals are more restrictive than others. But as an industry, we have always been fair trade minded because we produce more product than we can consume so we have an eye towards export access with our high quality beef. Certainly with the TPP, we were looking forward to having decreased tariffs in various Asia markets, particularly Japan. So the outcome to date is disappointing but that being said, we’re a strong competitor in many of those markets already. Obviously you hope for the best, but you don’t bank on it until it’s ratified because essentially you have to live and trade within the world markets that you have.
CMB: Let’s look ahead at 2017 for Canada Beef. I know some key positions are being replaced.
RG: Currently we are in the process of hiring a new senior executive. That new position will be the Executive Vice President and they will be in charge of our marketing operations around the world. That competition is currently active and we hope to have that individual in place by March of this year.
CMB: This new position came about in lieu of Rob Meijer’s departure?
RG: Yes, Rob has moved on to a senior marketing role with JBS Canada and we certainly wish him well. Rob had a very good run with Canada Beef establishing the organization during what could be called Phase One. As you might remember, our organization was formed out of several beef marketing groups and Rob came on and oversaw the development and new culture of our organization. He was instrumental in the development of the Canadian Beef Centre of Excellence and the marketing strategies that further developed the Canadian Beef brand which has been pivotal to our efforts around the world. He really did set us on the path to successfully leverage the brand into a solid offering in the marketplace. As a matter of fact, we are quite happy to continue to work with Rob in his new position with JBS, and since he left, he has been an ongoing customer of ours as we’ve done a number of initiatives together already.
CMB: So the incumbent will be the leader to take Canada Beef through Phase Two?
RG: Yes, and it’s kind of an exciting time for us because what does Phase Two hold for us? How will we continue to bring value to the beef producers who fund us? How will we continue to successfully market Canadian beef around the world? So we look forward to our new leader bringing us down that road.
CMB: Especially this year being a milestone in Canadian history.
RG: Yes, we’ve put a lot of thought and planning into incorporating Canada’s 150th birthday. So understandably we are very excited to market our brand with that celebration internationally.
CMB: It appears the new Executive Vice President role is completely separate from the previous President role, yet both are born from the aspects of what Rob had done previously.
RG: Yes, before Rob was President, the check-off and marketing functions were different but managed by the President. As we evolved, we saw an advantage in putting a firewall between the two functions, essentially the check-off is the banker of the money and Canada Beef is the marketer. When Melinda German came on board last year to lead the NCO– the last Q & A we did with Canadian Meat Business – that was a new role to specifically handle the check-off. Subsequently the new Executive Vice President will reflect this redefined role within the evolution of the company focused on market development.
CMB: There seems to a level of anticipation and positive change for Canada Beef in 2017.
RG: We’re certainly looking forward to it. The industry itself has been in an interesting cycle and we’re looking forward to the Canadian beef herds’ growth over the next few years, and with that will come increased supply over the next number of years. Right now we can sell every pound of beef we produce due to the fact the herd size is at a fairly low point historically, but it is poised for growth, and of course with that we’ll have more beef available for world markets. Internationally, we are a niche supplier in that we have always been about quality and value and not just quantity. And regardless of what the road ahead will be, Phase Two will continue to market that quality and high value product to the world. How were going to be accomplishing that is the exciting part.
Source: Meatbusiness