But he also believes that it will take more than just the knowledge that the world will need more protein if Canada is to make the most of what should be a windfall for the beef industry.
Experts say the worldwide demand for food caused by increasing incomes and population growth is going to double between now and 2070. In fact, China is expected to become the world’s leader in meat consumption, a trend that will also be observed in other developing nations.
For Boon, and other members of the beef industry, we live in exciting times. We also live in Canada and that means something.
“Canada has the ability to grow some of the safest, highest quality beef of any place in the world,” Boon told Canadian Meat Business Magazine. “Our climate, water, clean arable land and abundant grasslands, and our advancements in technology and production give us opportunities not available in other parts of the world.
“I believe that Canada is positioned to take advantage of these increases. However it will not happen without vision, planning and coordination as well as strategic investment, especially in research. The development of an industry-wide strategy is important, but also needs to be adhered to by not only those involved, but also by government. It also needs to be understood by the consumer to the extent that they trust in the direction the industry is taking and understand that the industry has the expertise to do it.”
Boon is not alone in his assessment and that’s why, one year ago, the Canadian Cattlemen’s Association, the Beef Cattle Research Council, the National Cattle Feeders Association and the Canadian Beef Breeds Council joined together to create Canada’s National Beef Strategy (NBS).
According to the National Beef Strategy’s own mandate “The growing global demand for protein has presented Canada’s beef industry with an unprecedented opportunity to increase demand for its beef products. The ability of the industry to fully seize this opportunity is not without significant challenges; tight cattle supplies, reduced marketing and competition for arable land are among the factors to be overcome. Canada’s beef sector organizations have responded to the challenge with the creation of the National Beef Strategy, a collaborative effort of national and provincial beef sector organizations, the National Beef Strategy provides the framework for how the organizations can work together to best position the Canadian beef industry for greater profitability, growth and continued production of a high quality beef product of choice in the world.”
In order to reach its goals, Canada’s beef cattle industry is in the process of organizing the first Canadian Beef Industry Conference (CBIC). The CBIC, a joint collaboration by the Beef Cattle Research Council, Canada Beef, the Canadian Beef Breeds Council and the Canadian Cattlemen’s Association, will be held Aug. 9-11, 2016 at the Grey Eagle Resort and Casino in Calgary.
“This is the first event of its kind in Canada and we are excited to bring Canada’s beef industry together,” said beef producer Rob Smith and co-chair of the 2016 CBIC. “The recently-established National Beef Strategy has four pillars, one of which is connectivity. This conference will allow everyone from industry leaders to smaller-scale producers to come together and help grow our industry.”
The conference will combine semi-annual and annual meetings of several stakeholder groups, along with learning and networking opportunities to create a one-of-a-kind experience for participants from across all the various regions and sectors of the Canadian beef industry.
The CBIC 2016 program will include keynote speakers on each of the four pillars – connectivity, productivity, beef demand and competitiveness. There will be educational presentations for producers and interactive workshops on applicable production innovations, plenty of networking with stakeholders in all stages of the beef supply chain and a unique lineup of events to draw industry stakeholders from across the country.
“We are excited to bring Canada’s beef industry together under one roof,” said beef producer Virgil Lowe, co-chair of the 2016 CBIC. “No matter where you live or what your role is in our industry, this one-of-a-kind national event will be worth the trip.”
For Ryder Lee, the CEO of the Saskatchewan Cattlemen’s Association, the NBS Conference will provide the connectivity that Lee believes Canada needs to prepare itself for the future.
“This conference will provide us with the opportunity to combine a number of the meetings that occur across Canada and bring them all together under one roof,” Lee said. “It will give us all an opportunity to hear a number of different things and it’s important that we all know what’s going on across Canada. It will only help our understanding of the entire Canadian beef industry and anytime you can consolidate a few airline trips into one, it’s good for business.”
One question that will be asked - and for producers, hopefully it will be answered - will concern the future of the industry and the dramatic increase in demand for protein all over the world: Is the Canadian beef industry - that’s the entire supply chain - prepared to take advantages of these expected increases?
“There are a lot of factors that play into this,” said Boon. “While the demand for protein is expected to double by 2060-70, it would probably be safe to estimate that the demand for food on a whole, not just protein, will double.
“I believe that the real question has to be: Is Canada positioned to meet the challenge of being able to help supply the world’s demand for food and what is our best opportunity, plant or protein? It is my opinion that we have an opportunity and a responsibility to concentrate and develop our production and markets through protein.
“We have some time to overcome these challenges. We typically run in cycles of seven-to-10 years, at least historically. The challenge is having a viable strategy and having all of the players at the table understanding where we need to go. As a free market industry the key is that all players need to see an opportunity for investment and growth. Food production and especially proteins have a bright future. Our job is to develop the tools for investment and increased productivity to make it the most viable to those wanting to invest.”
The mission of the National Beef Strategy is pretty simple: “To be the most trusted and competitive high quality beef cattle producer in the world, recognized for our superior quality, safety, value, innovation and sustainable production methods.”
It could be argued that Canada is already at or near the top of the heap. McDonald’s Restaurants, one of the largest purchasers of beef products in the world, would certainly agree, having chosen Canadian producers above all others for its Sustainable Beef Initiative. The question in 2016, however, is will Canada be able to produce enough quality beef to feed the growing demand? Already, each animal that Canadian cattlemen raise will be processed into more than 300 products. Exporting products that are in greater demand outside of Canada can add more than $400 in value per animal. There is a lot of money at stake.
“We raise a really good product,” said Melinda German, the general manager of Manitoba Beef. “The potential is so huge in front of us. More international markets are opening up. The affluence of many countries is growing as people have more disposable income around the world and they start to move from a plant based to animal protein diet.
“Having said that, we’ve just come out of a very tough decade. Economists have said that we’re unlikely to see the low prices we did when it bottomed out last decade, but there will still be another low again. Are we ready to meet the demands of the future? Yes and no. Our inventories across the country are at an all-time low. The U.S. has started to rebuild its herd, but we haven’t seen the same signals here in Canada. I’m confident we will rebuild and when we do, we need to be prepared for future growth.
“To get there, we must have a national strategy to support the industry... That’s what the NBS can do.”
Rich Smith, the executive director of the Alberta Beef Producers, believes Canada is well-positioned to remain an international leader in quality beef production.
“With growing demand for protein and increasing prosperity in the developing world, we think that the Canadian beef industry is in a good position to take advantage of recent developments,” Smith said. “We are competitive producers of high quality, grain-fed beef so the combination of growing protein demand and increased prosperity should create increased global markets for our products.”
Having said that, however, Smith agrees with the National Beef Strategy – there are challenges that must be met and overcome.
For instance, a key portion of the NBS is its Competitiveness Pillar. It addresses the issue of keeping Canada competitive both at home and in the world’s markets and it will be a popular topic at the national convention:
A) To be competitive, it is necessary to have a regulatory system that supports the industry, encourages innovation and efficiency, and doesn’t add unnecessary burden or costs. The strategy advocates and upholds a scientific based regulatory system in cooperation with trading partners.
B) All industries must have access to competitively priced inputs in order to be profitable – the beef industry is no exception. It is imperative that the Canadian business environment supports the development of new innovative inputs that can reduce production costs.
C) Research funding, infrastructure, and human capital have declined significantly in recent decades. It’s important to maintain scientific expertise and infrastructure in order to respond to issues as they emerge and to facilitate the transition of research programs and corporate memory.
D) Consumers are increasingly demanding food that is produced in a sustainable manner and Canada must be at the table when discussing the environmental, social, and economic sustainability priorities with beef leaders around the world. The strategy will provide the research and information for factual and science-based communication.
“We do face significant challenges, but I think we can overcome them and take advantage of the opportunities,” Smith said. “Our export market access is improving and we think that the profitability of the past couple of years will encourage expansion of our cow herd. We do face strong competition for land and water resources, as well as sustainability and social license pressures, but much of the land in Alberta is well suited to cattle production and our industry is taking a leading role in addressing social license issues.”
In the meantime, Smith is proud of Alberta Beef’s involvement in the development of the National Beef Strategy.
“The NBS represents our answer to two of the most frequent challenges we would hear from outside our industry: We need to get together and we need a plan,” he explained.
“The NBS is the result of an unprecedented level of collaboration among national and provincial cattle and beef organizations to create an ambitious five-year plan for our industry with clear and measurable objectives.”
The NBS certainly has lofty goals. According to its mandate, “the National Beef Strategy seeks to position the Canadian beef industry as the most trusted and competitive high quality beef cattle producer in the world recognized for its superior quality, safety, value, innovation and sustainable production methods.”
While most of its members agree that Canada is already a world leader, Kevin Boon is excited about the NBS and its future because B.C.’s future appears even brighter than many other provinces. In fact, with growth in Asian markets will come growth in B.C. production.
“BC is one of the few provinces that will see the biggest advantage in increased beef production,” Boon explained. “Much of BC is suitable only for livestock production and as such will not be faced with as much competition for the land base as other provinces.
“Our membership will be looking at how to increase the production on those lands, both forage and beef. We will be looking at what opportunities are there to increase production as well as how we increase our province’s presence in the world market.
“We are a small percentage of Canadian supply right now, but we are positioned well to the Asian markets and have the climate and geography to sell Canada to the world. We will be looking to the NBS convention to (a) show us how to position ourselves and (b) where we fit into the plan.”
Ryder Lee in Saskatchewan is also excited about Canada’s current position in the world and, as well, where it’s going.
“I think Canada, and Saskatchewan especially, will produce more than we can eat so that the growth of new markets won’t be as challenging as we might think. In fact, these new markets will probably be necessary,” Lee said. “In Saskatchewan, we have more land than we have bounty to produce. The point I’m trying to make is that Canada’s productivity is greater than we need.
“However that’s not to say there won’t be challenges in the future. We will be affected by weather around the world. We are always tight in cattle and supplies. And we’ve only recently gone through BSE and drought in the west. However, ultimately, the biggest challenge will be our own competition for the land. That’s why I’m looking forward to the convention in August. It will be good for all of us to get an understanding of what everyone is doing as we move forward.”
For Rich Smith and the Alberta Beef Producers, this year’s NBS Convention will also be about education. If Canada doesn’t have a national plan, the growth in international markets just might not yield the windfall that the experts believe are inevitable.
“The Canadian Beef Industry Conference addresses the connectivity pillar of the NBS and will be a place for the industry to come together to talk, learn and plan for the future,” said Smith. “We see great value in gatherings of producers and industry personnel where people can exchange views and gather new perspectives. We look forward to the opportunity for Alberta producers and ABP to meet with producers and industry people from across North America.”
German, who is soon moving to Alberta to work for Canada Beef and become more closely with the NBS is excited about the inaugural convention.
“It’s bringing together a lot of the key people in the industry,” she said. “However, I will be interested to see who it will attract that might not be key industry people. We have a message we need to et out to Canadians that we provide safe food and very high quality food and it will be interesting to see if this first national convention attracts the people who need to hear the message.”
It’s an important first convention. After all, if you ask producers from all over Canada, you realize that there is a lot at stake. The future is bright, but it’s also very challenging.
Source: Meatbusinesss