Ralph Cator

| Industr y Roundup |
cost increases. We expect this trend of improvement to
continue. While our bakery business earnings were off slightly
from year ago, there was a solid recovery in margin towards
more normal levels that we expect to continue in the second
half of the year.”
Adjusted operating earnings increased 20 per cent to $52.2
million from $43.6 million last year.
The company reported that sales for the second quarter
decreased four per cent due to currency impacts on U.S. and
U.K. bakery operations and fresh pork sales, and lower sales
volumes in prepared meats. These impacts were partly offset
by higher sales values of fresh pork, according to the report.
Sales in the meat products division declined two per cent
in the second quarter. Price increases in the prepared meats
business had the expected effect of reducing volumes in
the short-term as consumers adjust to new price levels, the
company said. The impact of a stronger Canadian dollar on
fresh pork sales and the exit of a non-core business category
reduced sales. These impacts were partly offset by improved
pork markets and increased net pricing in prepared meats.
Adjusted operating earnings in the meat products group
increased to $14.4 million compared to $1.7 million last year,
which the company said reflects better results in the its fresh
poultry operations due to improved markets and operating
efficiencies.
Sales in the agribusiness group declined two per cent to
$54.1 million from $55.0 million in the second quarter last
year due to lower sales prices in the rendering operations.
Government invests $6.5M in organic
farming innovation
On Sept. 1 the Government of Canada announced a $6.5
million investment in cutting-edge research to develop more
efficient and profitable processes for the Canadian organic
industry.
“Demand for organic products is growing and this
government wants to help our hardworking Canadian farmers
capture as much of this market as possible,” Agriculture
Minister Gerry Ritz stated in a release. “By creating this all-star
team, we can maximize the investment and focus Canada’s
organic expertise on the research that shows the most promise
in delivering a profitable, competitive edge to farmers.”
The Organic Federation of Canada will manage this
investment to address the priorities of organic producers.
The research will focus on soil fertility, grain cropping,
greenhouse production and food processing. This cluster will
also help develop a recognizable, high-quality brand to help
establish Canada as a leader in organic production and help
farmers expand their businesses, the Agriculture and Agri-
Food Canada (AAFC) release said.
“The Organic Science Cluster project, funded by the
Government of Canada, is a major event in the development
of this relatively new but rapidly growing segment of Canadian
agriculture – organic food,” added Ted Zettel, president of
the Organic Federation of Canada.
In partnership with the OFC, the Organic Agriculture
Centre of Canada (OACC) was instrumental in raising an
industry contribution of $2.2 million for this project.
“In this challenging period of declining oil supplies,
increasing climate change and economic shifts, research
results in organic agriculture offer options for all farmers and
consumers,” stated Dr. Ralph Martin, founding director of
meatbusiness.ca
the OACC. “As Canadian consumers look for more organic
products, this research will help Canadian farmers to benefit
from this opportunity.”
The Canadian organic sector has grown considerably in
the last 10-15 years, AAFC noted. Retail sales of organic food
products in Canada were valued at over $2 billion in 2008.
The Organic Cluster is delivered by the Growing Forward
framework under the Agri-Innovations program, a $158
million five-year program announced to support industry-led
science and technology projects.
Food manufacturing industry continues to
grow despite recession
Canada’s food manufacturing industry outperformed its
peers in the manufacturing sector during the recent recession,
with profits, production and employment all rising last year,
the Conference Board of Canada said.
The industry will continue to expand this year and beyond,
albeit at a modest pace, according to the board’s Canadian
Industrial Outlook: Canada's Food Manufacturing Industry-
Summer 2010.
“The Canadian food manufacturing industry is often taken
for granted,” Michael Burt, Conference Board associate
director of industrial economic trends, said in a release.
“The industry is one of the few components of Canada’s
manufacturing sector that has recorded consistent growth
in recent years. As a result, it is now the largest source of
manufacturing employment in Canada, a total of 240,000,
which is 14 per cent of the jobs in the sector.”
September/October 2010 Canadian Meat Business 29