Loblaws sales and profits rise

Loblaws reported a 6.7 per cent increase in profits to $777 million for its third quarter.

Revenues increased by 1.5 per cent to $16.5 billion.

The best results were for its discount stores. 

It opened 25 new No Frills stores in the quarter. It is also testing three new No Name stores that pare down prices further by lowering operating costs. the stores carry a narrower assortment of products and do not have refrigerators.

A previous charge related to a commodity tax matter at President’s Choice Bank was reversed during the quarter, after Loblaw won a legal appeal. That change positively affected the company’s net earnings by $125-million, offset by the amortization of assets related to Shoppers Drug Mart and the Lifemark chain of clinics.

Including those and other adjustments in the same quarter the previous year, adjusted net earnings available to common shareholders were $767-million compared to $719-million last year.

Agropur promotes Dubé

Jean-François Dubé has been appointed senior vice president of operations at Agropur. 

He will oversee operations at the company’s 29 production facilities in Canada and the U.S.

Dubé was previously vice president of strategic initiatives and organizational transformation.

Maple Leaf sales, profits up

 

Maple Leaf Foods Inc. reported a third-quarter profit of $17.7-million compared with a loss of $4.3-million in the same quarter last year.

Sales for the quarter totalled $1.26-billion, up from $1.24-billion a year ago.

It said its plan to create Canada Packers Inc. to take over its pork business is taking longer than anticipated because it needs to gain Canada Revenue Agency’s opinion of its “butterfly reorganization”.

Temple Grandin coming to Guelph

 

Dr. Temple Grandin, one of the world’s best-known specialists in animal behaviour, will be in Guelph Dec. 3 to speak at an event sponsored by the Centre for Meat Innovation and Technology.

A venue has yet to be chosen.

She will speak about the ABCs of Humane Animal Handling.

Ross Shantz dead at 81

 

Ross Shantz of Waterloo has died. He was 81.

He was active in many Mennonite endeavours including the annual New Hamburg Mennonite Central Committee auction and the House of Friendship in Kitchener.

He was president of the Ontario Pork Congress in 1987-88 and a member of Waterloo County Pork Producers Association.

He saved Waterloo County Supplies Co-operative after investments in hog production soured; rather than sinking into bankruptcy, he felt horse-and-buggy Mennonite farmers who had invested in the co-op needed to have it survive.

He was dismayed about the waste of surplus milk so set up a drying business on his farm at the western border with the city of Waterloo. 

There were times when tanker trucks delivered milk from processing plants whose pasteurizing had failed.

He gave frontage of his farm to a refugee who developed a tree business.

He planted hundreds of trees.

When hog prices plunged, he started Shantz Country Pork Family Restaurant in Waterloo at a time when the OntarIo Pork Producers Marketing Board started a restaurant in Toronto. Neither venture made a dent in pork demand and both closed.

He and his son expanded the milk-drying venture into a pork feed business.

When I was a reporter and columnist for the Kitchener-Waterloo Record, we often talked things over, in particular his concerns about Mennonite investors in Waterloo County Supplies Co-operative.

He was one of the nicest farmers I ever knew.

         

B.C. youth now in critical condition

 

The British Columbia teenager infected with highly-pathogenic avian influenza is now listed in critical condition in hospital.

Officials have not yet identified how he contacted the virus, but there has been a rash of two dozen outbreaks of avian influenza in commercial poultry operations in British Columbia over the last month.

Twelve rabid bats identified

 The Canadian Food Inspection Agency tested 132 samples and found rabies in 12 during October in Ontario.

That brought the total to 75 rabid bats in the province so far this year. 

There was one human case near Brantford.

The national total has risen to 119 and 111 of them were bats.

There were two rabid Artic foxes- one of them in Manitoba, the other in Nunavit – four skunks and one dog in Manitoba.

                           

Less beef bolsters pork outlook

 

Because there will be less beef this year and next, the outlook for increased pork demand is good, market analyst Kevin Grier told the Saskatchewan Pork Industry Symposium in Saskatoon.

Grier said InterPIG always ranks Canada as among the lowest cost producers in the world, a little bit higher cost than Brazil or the United States, but always right there among the most competitive in terms of producer production costs. 

“We may not be a low-cost producer at the packer level but we compete in other ways, through increased quality specifications, service, that sort of thing so from the farm to the packer we are competitive industry and that’s how we compete, on costs but also on service and quality,” he said.

About 70 per cent of Canada’s pork is exported.

Ports resume shipments

Ports in British Columbia and Montreal will soon be working again because the federal government has intervened to end employer lockouts.

Labour Minister Steven MacKinnon has sent the labour disputes to binding arbitration and ordered people back to work after long-running labour disputes reached what he described as a "total impasse."

The lockouts have tarnished Canada’s reputation for delivering goods such as grains and oilseeds, pork and beef and lumber.

Animal health profits rise

Two companies that market animal health products to farmers made higher profits according to recent quarterly financial reports.

Elanco posted a profit of $364 million compared with a loss of $1.1 billion for the same quarter last year. Its revenues were up by one per cent to $1.03 billion.

Phibro’s second-quarter profit was $7 million compared with a loss of $8 million last year and sales increased by 13 per cent to $260.4 million.

Saputo profit slips as sales rise

Saputo Inc. of Montreal reported its second-quarter profits slipped to $126 million from $156 million last year.

Revenues increased to $4.71 billion from $4.32 billion.

Its profit on Canadian operations increased by 9.5 per cent.

It also reported gains from “operational improvements” on its holdings in the United States.

Weak tornado hit near Fergus

A weak tornado ripped apart trees and downed some hydro lines near Fergus shortly after Environment Canada issued a tornado warning for the Caledon area.

Most of Southwestern Ontario experienced heavy rains and winds as a storm swept up from Texas Sunday evening.

Ports on lockdout

Ports in British Columbia and Montreal are idle because employers have locked out union workers.

In British Columbia, resumed negotiations lasted only an hour because the employers insisted on holding to their final offer, prompting the union negotiators to walk out.

The shut-downs impact grain, pork and other agricultural exports and imports of things farmers buy from overseas suppliers.

First Canadian case of avian flu

 

British Columbia has confirmed the first case of avian flu in a person.

It’s a teen in the lower Fraser Valley where there have been a number of recent outbreaks in commercial poultry flocks.

A statement from the office of the provincial health office said a teenager in the region covered by Fraser Health tested positive for bird flu, and the teen is currently getting treatment at BC Children’s Hospital.

The statement said the positive test was done by the B.C. Centre for Disease Control, and samples are on their way to Winnipeg’s national microbiology lab for confirmatory testing.

There have been a number of people in the United States who work with dairy cattle and poultry who have been infected, but those cases have been mild.

Senate neuters pro-supply-management bill

 A bill that intended to protect supply management from further market erosion to imports has been neutered.

Senator Peter Harder gained 10-3 support for his amendment that exempts existing trade deals, their re-negotiations and current negotiations from the intended protections.

Bloc Quebecois has made passage of the bill a condition of its support from the minority Liberal government.

“It’s unfortunate that the atmosphere surrounding this bill has turned from one of policy to one of politics,” Harder said.

Lighthizer pegged to return as negotiator

 

President-elect Donald Trump will pick Robert Lighthizer to return as U.S. trade representative, the Financial Times reported on Friday.

Lighthizer was one of the leading figures in Trump’s trade war with China and the renegotiation of the North American Free Trade Agreement, or NAFTA, with Mexico and Canada during his first term.

Trump has said he intends to impose an across-the-board tariff of 20 per cent on all goods from all countries and recently said 10 per cent with more against some countries such as China.

The Canada-United States-Mexico (CUSMA) trade deal is up for review next year.

World food prices rise

Despite lower pork prices, the United Nations reports that world food prices rose in October to an 18-month high.

Palm oil led vegetable oils prices which was a category with the greatest increases.

The U.N. index increased to 127.4 points last month, up two per cent from a revised 124.9 points in September and five per cent higher than a year ago.

 Overall meat prices edged down by three-tenths of  a per cent. Pork registered the sharpest decline and poultry also declined, but beef went up.

Hamel licence suspended

 

The Canadian Food Inspection Agency has suspended the licence of  Hamel Inc. of Lévis, Quebec.

It said the health of consumers was at risk and that the suspension will remain in effect until the company is in compliance with the Safe Canada Food Act and regulations.

The company makes frozen ready-to-eat food entrees, sauces, soups, dressings, quiches and pies for major supermarket chains and foodservice companies.

Hanover lifts boil water advisory

 

Hanover has lifted its boil water advisory after new testing has found the municipal water safe to drink.

 

A boil water advisory was issued Wednesday after six sample tests raised concerns.

The public health unit has not revealed what contaminant was found.

         

CNH to cut production

 

CNH said it plans to cut production and reduce heavy dealership inventories because of a 22 per cent reduction in sales for its third quarter that ended Sept. 30.

It said farm machinery and industrial equipment sales around the world declined because its customers are experiencing a profit squeeze.

CNH brands are Case IH, New Holland, Steyr, Raven, Flexi-Coil, Miller, Eurocomach and Hemisphere.

Hanover under boil water advisory

 

Grey Bruce Public Health Agency has advised Hanover residents to boil their water because test results identified contamination.

It did not identify the contaminant.

Mayor Sue Paterson said "the town’s first priority is ensuring the safety of our water supply.

“Our internal municipal water treatment systems are working as intended which prompted us to issue the precautionary boil water advisory for the safety of our residents, out of abundance of

caution.

“I know this causes concern for our residents. I kindly ask for your patience as we await the lab results."

In May, 2000, the water supply in nearby Walkerton was contaminated with E. coli 0157, sickening about 2,000 people and seven died.

The Hanover advice is to bring water to a rolling boil for at least a minute.

U.S. meat industry too concentrated

 

The United States Department of Agriculture has issued a report saying meat-industry concentration threatens those at both ends – farmers and ranchers and independent retailers – and should be regulated more vigorously.

That would include enhanced market surveillance, enforcing subpoenas and possibly updating the Packers & Stockyards Act policies.

The interim report is part of a U.S.D.A.-led investigation under the Packers and Stockyards Act and highlighted how concentrated control among large meat packers, distributors and retailers may stifle competition through pricing structures, fees and preferential treatment, ultimately affecting market access for smaller producers and independent retailers.

Noting the industry’s economic significance — beef alone comprises 17 per cent of U.S. agricultural revenue — the report said concentration in meat processing and retailing has escalated over the last 40 years, while smaller livestock operations have sharply declined. 

U.S. meat exports at record pace

 

Exports of beef and pork are aiming towards setting records this year.

Pork exports, led by Mexico, have Increased by eight per cent by volume and six per cent by revenue and beef exports, led by Asia, are up by five per cent by volume and six per cent by revenue.

Subway teams with egg farmers

 

Subway Canada is sporting the Egg Quality Assurance program logo in its stores in support of the Egg Farmers of Canada’s protocols for food safety and animal care.

Roger Pelissero, chairman of Egg Farmers of Canada, said the certification mark "represents our commitment to producing eggs to rigorous standards in the areas of animal care and food safety.” 

"Showcasing the EQA certification mark is a natural extension of our already strong commitment to supporting hard-working Canadian farmers," said Courtney Hindorff, managing director for Subway Canada.

Chicken production to edge higher

 

The national supply-management agency has set a production target of 1.5 per cent above base quota for February and March.

For Ontario the target is 1.8 per cent above base, which would be

73,861,125 kilograms.

Trump win worrisome for Canadian farmers

 

Donald Trump’s win Tuesday increases threats to Canadian farmers, mainly related to trade, say observers.

Economist Sylvain Charlebois foresees tense trade negotiations when the Canada-U.S.-Mexico trade agreement comes up for review next year.

Canada should be pushing for the review to be a rundown of what worked and what didn’t, not a full-scale reworking of the trade deal, said Keith Currie, president of the Canadian Federation of Agriculture.

“We’re pushing for our government to remind the U.S. and Mexico …U.S. in particular, that this is a review, not a renegotiation,” he said.

While the Bloc Quebecois is trying to take supply management off any trade negotiations, it’s likely that Trump will push for increased dairy-industry access to the Canadian market.

He will be seeking to reward Wisconsin voters who gave him some of the votes he needed to win the presidency, and the Wisconsin dairy industry has been steadily pushing against Canada’s dairy-industry trade protections.

Trump has threatened a 10 per cent tariff on all imports and that would hit hard at the Canadian pork and canola sectors.

He is threatening to deport millions of undocumented immigrants and that could spill some of them into Canada.

Quebec has said it will be beefing up its borders with the U.S.

An immigration surge would further aggravate housing shortages and the cost of government services, although somewhat relieve the job vacancies situation in industries such as meat packing.

American farmers would face a severe labour shortage.

Trump has also made vague promises of increased supports for farmers and reduced taxes on small businesses. That would result in stiffer competition for Canadians.

One big unknown is what R.F. Kennedy Jr. will do after 

Trump puts him in charge of the U.S. Food and Drug Administration.

Much of the attention has focused on his opposition to vaccinations, but the FDA also has jurisdiction over many food and agriculture regulations and products, including animal and poultry vaccines.

Wonder Brands recalls bread, buns

Wonder Brands Inc. is recalling a number of breads and buns because they may contain metal shards.

The 37 products under recall include Country Harvest, D'Italiano, Great Value, No Name and Wonder.

In a related recall, the Canadian Food Inspection Agency said pieces of metal were found in salt from Compass Minerals Canada Corp.

Giant Tiger posted a recall of 16 Wonder Brands Inc. products and Costco posted a recall on its wholesale site on Oct. 29 for certain Wonder Brands Inc. products.

 Costco cited Compass Minerals’ salt as the reason for its recall.

Why has CFIA failed to issue recalls of breads and buns and perhaps other products containing Compass Minerals salt?

Feds win cherry patent case

 Agriculture and Agri-Food Canada has won a cherry-tree patent case in a United States federal court in Washington State.

The court ruled that a variety being sold as Glory is in fact Staccato, a variety developed by Agriculture and Agri-Food scientists at Summerland, British Columia.

Summerland Varieties Corp. holds exclusive rights to Staccato.

Gordon Goodwin, a grower who is also a pastor, said the Staccato cherry tree he grew was a gift from God and he patented it as Glory and licenced it to Van Well Nursery who marketed trees through Monson Fruit Co.

But genetic evidence proved Glory was in fact Staccato and was from a test plot that included another Summerland-developed variety called Sonata.

Having proven that Glory is Staccato, AAFC plans to pursue claims against Van Well, Goodwin and Monson for conversion, the unlawful possession and use of Staccato plant material for their own purposes, as well as false advertising and business interference, reported Country Life in B.C. magazine.

Staccato plant material and fruit are tightly controlled under a business arrangement between AAFC, SVC, and Stemilt Growers, the sole authorised U.S. packer and marketer of Staccato cherries.

Greenhouse growers select research head

 

The Ontario Greenhouse Growers marketing board has appointed
Daniel Terlizzese its lead for research, innovation and plant protection.

He has managed greenhouse crop growth and plant physiological measurements for the federal agriculture department and has designed research trials to improve crop production for Great Lakes Greenhouses.

His recent position as an Agronomist at Sollum Technologies involved enhancing crop growth and yield through dynamic LED lighting and collaborating on novel research projects.

He holds two science degrees from the University of Guelph.

The marketing board more than 170 members with more 4,100 acres growing peppers, tomatoes and cucumbers.

PDCoV in Waterloo

 

 

There has been an outbreak of Porcine Delta Coronavius in a farrow-to-wean facility in the Waterloo Region, reports Swine Health Ontario.

Chatham-Kent approves backyard chickens

Chatham-Kent council has voted to allow a two-year trial allowing up to ten backyard chickens per property in rural and village settings.

A couple of councillors raised concerns about avian influeza carried by migrating waterfowl and an outbreak that would result in quarantine zones affecting commercial poultry producers.

Hog farmers remain cautious

Despite good news, hog farmers remain reluctant to expand production, reports Rabobank.

The good news is that pork consumption is increasing and feed and energy costs and inflation are declining.

Continuing trade issues, disease outbreaks in specific markets and potential local production shortfalls in Asia, South America and northern Mexico are prompting some producers to reconsider their rebuilding plans in the fourth quarter, the report said.

With the global sow herd holding steady in the third quarter of 2024, producers are responding to disease outbreaks in the European Union, South Korea and Russia. 

That factor alone limited herd rebuilding in the second half of the year despite biosecurity measures that allowed China to look forward to a return to herd growth in 2025, the report said.

OECD urges research instead of subsidies

 

Agriculture subsidies have declined since 2021 but remain near historic highs and are still not sufficiently directed at critical innovation, productivity and sustainability goals, according to a new report from the OECD (Organization for Economic Cooperation and Development).

A measure of farm subsidies across 54 countries, shows that total support at $1.2 billion per year during the 2021-23 period.

Support remains concentrated in a few large economies, with China at 37 per cent, the United States at 15 per cent, India at 14 per cent and the European Union at 13 per cent.

The share of estimated support dedicated to general services such as innovation, biosecurity or infrastructure averaged only 12.6 per cent of total support in 2021-23, down from 16 per cent a few years ago.

“Government efforts towards sustainable productivity growth in agriculture are a positive step forward, and can help to future-proof the sector,”said OECD Secretary-General Mathias Cormann.

“However, overall levels of farm subsidies remain high, and much of it is counter-productive to these key objectives. Smart reforms are the key to further progress.” 

To encourage innovation, governments are developing strategies and frameworks, investing in research and development, strengthening institutions, enhancing agricultural knowledge as well as innovation systems, and providing targeted incentives to producers to develop and adopt new production methods. 

Reorienting support could benefit such efforts, the report said.

Inflation is easing

 

Inflation has eased to 4.4 per cent in countries that are members of the Organization for Economic Cooperation and Development (OECD). It was 4.7 per cent in August.

Inflation declined in 27 of 38 OECD countries, rose in six, and was stable or broadly stable in five. It was 49 per cent in Turkey.

Despite the recent slowdown in OECD headline inflation, average price levels across the OECD as a whole were approximately 30 per cent higher in September, 2024, than they were in December, 2019, prior to the onset of the COVID-19 pandemic.

Canada’s September inflation rate was 1.6 per cent.

Grain exports take another hit

 

Grain and meat exports from the West Coast are taking another hit because the British Columbia Maritime Employers Association (BCMEA) locked out a union of more than 700 foremen.

Strikes have undermined Canada’s reputation as a reliable supplier.

The union and employers have been bargaining since March.

The Canadian Federation of Independent Business is asking the Canadian government to get involved and help settle the dispute.

Before the Grain Workers union went on strike in September, Grain Farmers of Canada asked the federal government and Minister of Labour, Steven MacKinnon, to use all tools available to them to ensure parties reach an agreement before a work stoppage occurs. 

“Without intervention, Canada’s international trading reputation will continue to suffer, leading to the loss of key global markets.

The strike ended with a Sept. 29 four-year contract.

Jason Esme wins sheep award

 

Jason Esme is this year’s winner of the Emerging Leader award from Sheep Fsrmers of Ontario marketing board.

He is the fourth generation to run Oak Generation farm near Elmwood and has been chairman of District Two (Grey-Bruce), a willing volunteer, a showman and judge and active at the local, provincial and national levels of sheep organizations.

 

Oregon pig flu from birds

The avian flu found in a backyard hog in Oregon appears to be a strain of H5N1 contracted directly from wild birds, rather than the strain that crossing over from birds to dairy cattle, according to top officials of the United States Department of Agriculture.

Meanwhile, Utah has confirmed its first outbreak in dairy cattle, with infections discovered on eight farms in Cache County. 

The appearance followed the culling in early October of the entire flock of 1.8 million chickens after the virus was discovered on an Utah poultry facility for the first time since 2022.

The Fraser Valley in British Columbia has had outbreaks in commercial poultry farms almost daily for the last week. Chilliwack and Abbotsford have been particularly hard hit.

U.S. Agriculture Secretary Tom Vilsack said in a press conference that the Oregon case, which was the first crossover discovered in pigs of the ongoing avian flu “was a result of wild birds.” 

The Oregon farm was non-commercial facility with small livestock and poultry of half a dozen species.

Farm & Food Care wins award

 Farm & Food Care Ontario has won the Ministers Award in the Excellence in Agriculture awards program organized by the Ontario Ministry of Agriculture, Food and Agribusiness.

It was recognized for developing partnerships “to help raise awareness about food and farming in Ontario” and for fostering “meaningful connections through marketing campaigns and resources including The Real Dirt on Farming (publication), while hosting farm tours and events such as Breakfast on the Farm.” 

It also trains people who educate the public about farming.

“The board and staff of Farm & Food Care Ontario are delighted to be receiving this award from the province,” said Crispin Colvin, chair of Farm & Food Care Ontario. “Our work with farmers and food partners helps to reinforce trust and confidence in local farming and food production. This benefits us all. It is so rewarding to see the important work we do supported by our government partners.”

The complete list of winners is:

Research and Innovation Excellence: Cool Climate Oenology and Viticulture Institute, Brock University – Niagara.

Food Processing Excellence: Conestoga Meats – Breslau.

Education Excellence: Foodpreneur Lab – Toronto.

Promotional Excellence: Bite of Brant – Brant Farm & Food Care Ontario.

Supply Chain Excellence: Second Harvest – Toronto.

Workforce Excellence: Operation Grow – Simcoe.

Urban Agriculture Excellence: ZipGrow Inc. – Stormont, Dundas and Glengarry.

Northern Business Excellence: Bujold Farms – Rainy River.

Women’s Excellence: Jenny Carnaghan, Carncroft Farms – Durham.

Youth Excellence:Beck’s Broth – Waterloo.

Farm Family Excellence - North: ELD Farms – Kenora.

West: Schooley Orchards Ltd. & Apple Hill Lavender – Norfolk

Global grain stocks are shrinking

Why, if global grain stocks are shrinking, are Canadian prices for wheat, corn, canola and soybeans declining?

Al Mussel, Ted Bilyea and Douglas Hedley of AgriFood Economic Systems say it’s mainly because Canadian prices are tied to the United States. 

Mussel said corn exports from the U.S. were down in 2023. Meanwhile, corn exports of the other major exporters have increased markedly - between 2014-2023 corn exports from Brazil almost tripled; corn exports from Argentina more than doubled, and Ukraine corn exports almost doubled between 2014-2019 before decreasing to a steady level ranging around 25 million tonnes.

Moreover, U.S. corn exports are increasingly staying close to

home in Mexico and Canada.

The combined share of Canada and Mexico now take 47 per cent of U.S. corn exports.

Early in the previous decade, the U.S. was vying with Brazil as the largest soybean exporter. Since then, U.S. soybean exports have ranged around 50 million tonnes while Brazil’s soybean have roughly doubled to more than 100 million tonnes.

But the U.S. soybean crush increased to a record, soybean oil exports are decreasing and soybean meal exports are increasing.

The reason is rapidly increasing demand for fats and

oils in manufacturing renewable fuels, especially renewable

diesel.

During the past few years, the United States has jumped

from accounting for 50-60 percent of Canadian canola oil

exports to 91 percent in 2023. 

Canola oil supplies should remain robust as Canada announced plans to expand crush capacities in the next several years.

In other words, U.S. renewable policy is diverting Canadian

canola from more consumer-oriented growing export

markets, tying Canadian prices to the U.S. market.

Yet the report ends by saying “if we are entering a

strong trend toward a period of greater global scarcity,

as multiple indicators suggest, then as one of the few

surplus producers and major net exporters of agri-food

products, this is an important issue for Canada- and the

wider world.”

                           

 

For the first time in history, supply management is reducing the price of milk by 2.37 cents a litre, effective Jan. 1.

Prices are governed by a cost-of-production formula and the Canadian Consumer Price index.

‘This price is only for milk used to make butter cheese and othee products.

The province oversees prices provincial marketing boards set for fluid milk which consumers buy a fresh milk.

That price has also never gone down,

At least twice, milk marketing boards have lobbied for changes in the pricing formulas to avoid reductions. In the case of the two types of milk, the Consumer Price Index was brought into the formula.