FCC: Trade Disruptions Stifle Growth for Canadian Food and Beverage Manufacturers
Ontario Investing $41 Million in Agricultural Research Infrastructure
The Future of Agriculture is Sustainable and Profitable Uneven Ground: Canada’s Business Tax
Disadvantage Compared to the U.S.
October 2025
No Deal to End U.S. Tariffs Yet
5 6 12 15 17 18 22 24 26
Canadian Livestock Sector Roars Ahead
NFACC: Updates on the Codes of Practice Under Revision/Amendment
Ontario Investing $41 Million in Agricultural Research
Infrastructure
Relationships Matter
The Future of Agriculture is Sustainable and Profitable
FCC: Trade Disruptions
Stifle Growth for Canadian Food and Beverage Manufacturers
World Steak Challenge Hands Out 304 Medals at 2025 Competition
Uneven Ground: Canada’s Business Tax Disadvantage Compared to the U.S.
October 2025 Volume 25 Number 10
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NO DEAL TO END U.S. TARIFFS YET
Prime Minister Mark Carney departed Washington on October 7th without any deals to remove U.S. tariffs from Canadian goods, but he left key ministers behind to keep pressing the Canadian case.
Carney met with U.S. President Donald Trump in the Oval Office, the second such meeting between the two leaders in less than six months.
Canada-U.S. Trade Minister Dominic LeBlanc told reporters at a press conference following the meeting that substantial progress was made and there is now momentum to make deals. He said Carney and Trump directed their teams to move quickly on sector-specific trade deals beginning with steel, aluminum and energy.
LeBlanc and Foreign Affairs Minister Anita Anand both stayed in Washington for further meetings, including a planned conversation between Anand and Secretary of State Marco Rubio.
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Christopher Sands, director of Johns Hopkins University’s Center for Canadian Studies, said he was hoping the Trump administration would offer a clear signal that it was taking Ottawa's efforts seriously.
To appease the American president, Carney has dropped many of Ottawa's retaliatory tariffs, paused Canada's digital services tax, introduced border security legislation and moved to ramp up defense spending.
Before leaving Washington, Carney had a working breakfast with Joshua Bolten, president and CEO of the Business Roundtable, while Foreign Affairs Minister Anita Anand met with U.S. Secretary of State Marco Rubio.
The meeting showed that Trump respects Carney, said Eric Miller, president of Rideau Potomac Strategy Group, a cross-border consultancy focused on trade, supply chains and government affairs.
"That matters in Trump world," Miller said. "He doesn't want to deal with somebody who he doesn't respect."
Trump boosted tariffs on Canada to 35% in August but those duties don't apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade (CUSMA).
Martha
Cam Dahl, Juliette Nicolay, Jack Roberts
CANADIAN LIVESTOCK SECTOR ROARS AHEAD
Canada's agricultural landscape is witnessing a resurgence in its livestock sector, with both cattle and hog industries exhibiting strong positive trends that are significantly bolstering the nation's farm economic outlook. As of October 2025, producers are enjoying a period of enhanced profitability and expanding production, injecting crucial vitality into rural economies and contributing substantially to overall agricultural growth. This optimistic scenario, however, unfolds against a backdrop of potential trade headwinds and evolving market dynamics that warrant close monitoring.
The current buoyancy in the livestock market is largely fueled by a confluence of factors, including constrained supply, resilient consumer demand, and strategic industry adaptations. While the cattle sector benefits from record-high prices driven by a smaller North American herd, the hog industry is seeing increased production and improved margins, partly due to favorable feed costs and significant corporate restructuring. These developments are not only providing immediate financial relief to producers but are also setting the stage for potential long-term stability and growth within these vital segments of Canadian agriculture.
UNPACKING THE SURGE: RECORD PRICES, STRATEGIC SHIFTS, AND MARKET REACTIONS
The cattle sector stands out with unprecedented price levels, offering a much-needed boost to producer profitability. As of late September 2025, fed steer and heifer prices have reached approximately $312/ cwt live, with feeder steer and heifer prices also significantly elevated. The calf market, in particular, has been described as "on fire," with some lightweight feeder steers fetching all-time highs of $540/cwt in July. These prices are a direct consequence of a historically small North American cattle herd and sustained robust consumer demand, both domestically and internationally, particularly from Asian markets. This improved financial environment is cautiously encouraging some producers to retain more replacement heifers, a critical, albeit slow, step towards herd rebuilding, as the overall Canadian cattle herd remains at a three-decade low as of January 1, 2025.
In parallel, the Canadian hog sector is charting its own course of positive momentum. Pork production is projected to increase by 1% in 2025, supported by higher slaughter numbers and heavier carcass weights. This growth is underpinned by strong sow productivity and enhanced slaughter capacity, especially in Western Canada, which is offsetting declines in Eastern regions. Hog futures prices are strong, and anticipated lower feed costs for corn and barley are contributing to some of the best margins farrow-to-finish operations have seen in years. A weaker Canadian dollar further amplifies farm receipts for exporters, solidifying the sector's financial health.
A pivotal event for the hog industry occurred on October 2, 2025, with Maple Leaf Foods completing the spin-off of its pork operations into a new, independent publicly traded company, Canada Packers Inc. This strategic move allows Canada Packers to specialize in pork production, from farm to processing, boasting substantial capacity to process nearly five million pigs annually and diversified revenue streams. This restructuring is anticipated to enhance efficiency, competitiveness, and long-term value within the Canadian pork industry, marking a significant milestone in its evolution. Initial market reactions have been largely positive, with producers experiencing strong profitability and renewed confidence in the sector's trajectory, despite the ongoing challenge of a relatively small overall cattle herd and the need for continued vigilance regarding export markets.
CORPORATE FORTUNES: WINNERS AND LOSERS IN THE LIVESTOCK BOOM
The robust performance of Canada's cattle and hog sectors has direct implications for a range of publicly traded companies, creating both significant opportunities and potential challenges. Companies across the agricultural supply chain, from input suppliers to meat processors, are feeling the ripple effects of elevated livestock prices, improved producer profitability, and strategic industry shifts.
Agricultural input and equipment suppliers stand to benefit from the revitalized farm economy. Nutrien, a global leader in crop inputs and services, is wellpositioned as improved farmer profitability often translates into increased investment in fertilizers, seeds, and crop protection products necessary for feed production. Similarly, AG Growth International, which designs and manufactures equipment for grain handling, storage, and processing, is likely to see heightened demand for its solutions as livestock producers and feed operations seek to optimize efficiency amidst strong market conditions. While these companies have diversified portfolios, the buoyancy in the livestock sector provides a strong tailwind for their Canadian operations.
The meat processing segment is experiencing a more nuanced impact. The newly independent Canada Packers Inc., spun off from Maple Leaf Foods on October 2, 2025, is a direct beneficiary of the strong hog market. With elevated hog prices and significantly lower feed costs expanding profit margins, Canada Packers is poised for increased revenue and improved profitability from its specialized pork production and processing operations. Its focused strategy post-spin-off is expected to allow it to capitalize more effectively on these favorable market conditions and strong export demand. Conversely, Maple Leaf Foods, while still holding a 16% stake in Canada Packers and maintaining a supply agreement, has largely de-risked its direct exposure to the volatile hog processing business, now focusing more on its prepared foods and poultry segments. Its future performance will be driven more by these diversified operations, though it will still indirectly benefit from Canada Packers' success.
However, the positive outlook is tempered by considerable risks, particularly the looming threat of U.S. trade barriers. The potential imposition of tariffs on Canadian pork products could severely impact Canada Packers Inc.'s profitability, given its reliance on international sales, potentially eroding the hard-won margins. For the cattle sector, similar trade disruptions could lead to a significant decline in Canadian cattle prices, affecting profitability for producers and, by extension, the entire supply chain.
Companies like Premium Brands Holdings Corporation, a diversified food company with exposure to the meat sector, may see benefits from robust meat demand but could also face pressure on margins from higher raw material costs if not fully passed on to consumers. The ability of these companies to navigate these geopolitical uncertainties will be critical to sustaining their current positive momentum.
WIDER SIGNIFICANCE: NAVIGATING TRADE WINDS AND INDUSTRY EVOLUTION
The current strength in Canada's livestock sector is a critical component of the broader agricultural narrative, highlighting resilience and adaptation in the face of global economic shifts. The slow but deliberate process of herd rebuilding in the cattle industry, driven by improved profitability, signifies a long-term commitment to stability and growth after years of contraction. This trend is crucial for ensuring a sustainable domestic beef supply and maintaining Canada's position in competitive international markets. For the hog sector, increased production and strategic restructuring, such as the Canada Packers Inc. spin-off, underscore an industry striving for greater efficiency and specialization to maximize value from strong global demand.
However, this positive momentum is overshadowed by significant external pressures, primarily the potential for disruptive U.S. trade policies. The highly integrated North American livestock market means that any imposition of U.S. tariffs or voluntary Country of Origin Labeling (vCOOL) could have immediate and severe ripple effects. Such measures could substantially depress Canadian livestock prices, widen price bases, and force Canadian exporters to either absorb losses or aggressively seek new markets, potentially straining existing trade relationships and infrastructure. This vulnerability highlights the ongoing need for robust trade advocacy and diversification of export markets.
Historically, the livestock sector has often been a bellwether for agricultural health, with periods of high commodity prices typically spurring investment and expansion. However, the current scenario is unique due to the confluence of a historically small cattle herd, strong global demand, and the ever-present geopolitical risks. Unlike previous cycles where herd expansion might have been more rapid, the current rebuilding phase is slower, suggesting a more cautious and potentially more sustainable growth trajectory. The industry's ability to manage feed cost volatility, processing capacity constraints (especially for hogs reliant on live exports to the U.S.), and evolving consumer preferences for protein sources will be key determinants of its long-term success.
WHAT COMES NEXT: PATHWAYS TO SUSTAINED GROWTH AND EMERGING CHALLENGES
Looking ahead, the Canadian livestock sector faces a dynamic landscape with both promising opportunities and considerable challenges. In the short term, the sustained high prices for cattle and strong margins for hogs are expected to continue supporting producer profitability into early 2026, assuming feed costs remain manageable and export demand holds firm. For the cattle sector, the focus will remain on the gradual rebuilding of the national herd, a process that is inherently slow but vital for long-term supply stability. Success in this area will depend on continued favorable economic conditions that encourage heifer retention and investment in breeding stock.
For the hog industry, the strategic initiatives, such as the specialization offered by Canada Packers Inc., aim to enhance competitiveness and efficiency. Continued investment in processing capacity, particularly in Western Canada, will be crucial to reduce reliance on live hog exports to the U.S. and mitigate risks associated with potential trade disruptions. Exploring and expanding into new international markets beyond traditional partners will also be a key strategic pivot to diversify revenue streams and build resilience against protectionist trade measures.
In the long term, the sector must adapt to broader industry trends, including evolving consumer preferences for sustainably produced and ethically sourced meat, and the increasing digitalization of farming practices. Climate change and its impact on feed crop production and animal health also present ongoing challenges that require proactive management and innovation.
Market opportunities may emerge from value-added processing and niche product development, catering to premium markets that are willing to pay for specific attributes. However, the overarching challenge remains the navigation of international trade relations, particularly with the U.S., as any significant policy shift could swiftly alter the economic outlook for Canadian livestock producers and processors.
RELATIONSHIPS MATTER
By Cam Dahl, General Manager, Manitoba Pork Council
On September 17, the Office of the United States Trade Representative (USTR) began a 45-day public comment period on the effectiveness and impact of the CanadaU.S.-Mexico Agreement (CUSMA), and public hearings on CUSMA will be held in the U.S. this November. The process to review Canada’s most important trade agreement has begun.
Our relationships with our partners, customers, and suppliers in the U.S. matter now more than ever. Recently, Manitoba Pork was on a mission to Iowa with Manitoba’s Minister of Agriculture, Ron Kostyshyn. It was an opportunity to talk to Iowa’s farm leaders and politicians about the value of our integrated market and the trade between us. We could not have received a warmer welcome. There is a strong understanding south of the border about the value of our trading relationship. The USTR and U.S. Congress will likely not give a lot of weight to comments from the Canadian pork sector, Canadian agriculture in general, or even our federal and provincial governments, but they will listen to the Governor of Iowa and elected representatives of Iowa’s agriculture base.
While it might look good on social media or on television for a Canadian politician, in a fit of pique, to pour out whiskey distilled in Manitoba over a disagreement with a multi-national company, or to threaten to turn off the lights in American states, this is not how strong positive relationships are built. Relationships are built by showing up at state fairs as friends and neighbours. Canadians cannot afford to have potential allies in the U.S. and Mexico turned off by aggressive commentary coming from north of the 49th parallel. We need partnership not rhetoric.
For Canadian agriculture, this outreach should be the top priority for the industry, especially for the 90 percent of Canadian farmers who depend on international markets for their price discovery and sales. While we must look to diversify our markets, we cannot replace the U.S. as a destination. For example, Manitoba ships over 3 million live pigs to be finished in the U.S. every year. Today these exports are moving under the protection of CUSMA. If we were to lose that protection or have the integration between producers in the U.S. and Canada weakened, these animals would have no alternative markets and communities across our province would feel the economic impact.
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Canada’s federal, provincial, and territorial agriculture ministers met in Winnipeg the second week of September. I am hopeful that they discussed the development of a strategic outreach plan with our partners in the U.S. Not every Minister needs to visit every state capitol in the lower 48 states, but we should have a plan in place to have at least one agricultural delegation reach out to most of them before the 45day comment period on the effectiveness of CUSMA expires.
Which brings me to my closing observation. The U.S. has started public consultations on the effectiveness of CUSMA. When are the Canadian consultations going to begin? The best time to start the development of a strategic pan-Canadian agricultural position on the key elements of the CUSMA would have been about 18 months ago. The second-best time to start this dialogue with the agriculture community is today. If this does not occur, Canada runs the risk that we will go into the critical part of the CUSMA review with both industry and governments divided. That could be a mistake that has far reaching consequences for farmers from coast to coast.
For agriculture, the overall goal going into the CUSMA review must be the preservation and expansion of the integrated North American market for both agricultural commodities and food. For the betterment of farmers, processors and consumers, we must actively target the elimination of tariff and non-tariff trade barriers including, regulatory misalignment between Canada and the U.S., increased use of restrictive country of origin labelling requirements, and individual state regulations that restrict trade within North America.
Our strategic discussions with our CUSMA partners should also recognize that, in an increasingly less stable international trading environment, secure trade within North America of agriculture commodities and food contributes to the national security of all three CUSMA signatories and helps deliver a reliable and safe food supply for North American consumers.
NSF INTERNATIONAL FOCUSES ON CANADIAN FOOD INDUSTRY WITH NEW WEBSITE FOR SERVICES IN CANADA
Global public health organization showcases services for Canada’s growing and fast-changing food industry
NSF International in Canada recently launched a new website - www.nsfcanada.ca - to give Canada’s growing and complex food and beverage industry easy access to the global public health organization’s expertise and services in Canada. The website combines information on the depth, experience and capabilities of the NSF International Canadian office with access to NSF International’s global services dedicated to food safety and quality.
FCC: TRADE DISRUPTIONS STIFLE GROWTH FOR CANADIAN FOOD AND BEVERAGE MANUFACTURERS
The Canadian food and beverage manufacturing sector has faced slower-than-expected growth in the first half of 2025, with sales and margins experiencing pressure given the challenging trade and economic environment. According to Farm Credit Canada’s (FCC) Food and Beverage Report mid-year update, the sector saw a modest sales increase of 0.8 per cent in the first half of the year, but this momentum is not expected to hold, with a projected 0.3 per cent decline in the second half.
Evolving regulations across countries and increasing complexities associated with a globalized food supply network present challenges for NSF International clients in Canada and around the world. The new Canadian website offers expertise and services to help companies navigate
of a company’s food safety system, providing improved brand protection and customer confidence. Certifications and audits are available for animal and produce in the agriculture industry, GFSI certification and management system registration.
After a promising start to 2025, food and beverage manufacturers are beginning to feel the pinch of trade disruptions. FCC Economics now forecasts overall sales growth for 2025 to be restricted to just 0.2 per cent, down from the April projection of 0.6 per cent. If this holds, it will mark the lowest annual growth for the sector since 2005.
Consulting: A full-service team approach providing technical resources, expertise and insight for a wide range of food safety and quality services. NSF International provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services from on-site temporary or permanent technical staffing placements, and various types of consulting.
accredited International Association for Continuing Education and Training (IACET) site. Topics include HACCP, food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging,
Technical services: A one-stop solution for food product compliance and formulation, from concept to finished product, including food and label compliance, packaging, product and process development, and shelf-life and product evaluation.
While the vast majority of Canadian food and beverage products continue to enter the U.S. market tarifffree, it’s far from business as usual for Canadian exporters. Canadian businesses must ensure thorough documentation to demonstrate compliance with CUSMA regulations, adding complexity to the trade landscape. As a result, overall food exports to the U.S. are down in 2025 and uncertainty is hurting businesses investments.
Training and education: Training for the global food and beverage industry across the supply chain as an
Much of the sales growth seen so far is price-driven: sales are slowly trending up because of price increases, while the volume of goods sold is declining. Sectors with higher reliance on export markets faced more headwinds than those selling primarily into the domestic market. For example, dairy products and meat product manufacturing showed positive sales early in the year while grain and oilseed milling faced significant challenges early on due to tariffs and biofuel policy uncertainty.
“The first half of 2025 has been a test of resilience for our industry,” said Amanda Norris, FCC senior economist. “Despite the challenges, we have seen some sectors show remarkable strength, driven by sales diversification.”
There is cautious optimism for 2026, with expectations of stabilizing or even falling input prices, particularly for grains and oilseeds. The job vacancy rate in food and beverage manufacturing fell to 2.8 per cent in the second quarter of 2025, the lowest for the same period since 2015, indicating a larger pool of available workers.
There is also one potential bright spot so far this year and that is an uptick in per capita Canadian household expenditure on food and non-alcoholic beverages in both the first and second quarter of 2025. This is a positive development given the earlier concern that slower population growth would cap demand for food and beverages.
A continued strong demand for non-alcoholic beverages including energy drinks with new flavour profiles and functional ingredients is a longer-term trend and that momentum is expected to continue into 2026. “Looking ahead to 2026, we are optimistic about the potential for recovery,” said Norris. “A modest rebound in sales, paired with stabilizing or even falling input prices are positive signs that we can build on to drive growth and profitability.”
Building a stronger Canadian economy can open up interprovincial trade opportunities for food and beverage and capitalize on Canadians’ appetite for domestic products, as mentioned in an FCC report titled The $12-billion trade shift: Canada’s opportunity to diversify food exports beyond the U.S.
For more information, visit fcc.ca
WORLD STEAK CHALLENGE HANDS OUT 304 MEDALS AT 2025
A total of 304 medals were awarded at this year’s World Steak Challenge, which recognises the best quality meat across the globe.
Of the total, 112 were gold medals, 109 steaks were given silver medals and 73 steaks bronze medals following an extensive judging process held earlier this month in Amsterdam.
Australia once again took home the most gold medals, with 25 steaks from the country awarded the accolade, the most awarded to any country, closely followed by Ireland, with 24 steaks from the country awarded a gold medal. Overall, Ireland had the greatest medal haul with 68 steaks awarded either a gold, silver or bronze award, ahead of Australia with 40 medals and Argentina with 29 medals.
Now in its 11th year, the World Steak Challenge is partnered by Bord Bia, Synergy Grills and Vlees & Co. Steakhouse in Amsterdam.
All winners, including those of the Company Awards, which celebrate the best producers in the Small and Large company categories, will be announced at a special dinner being held at London’s Smith & Wollensky on November 10th. One steak will also be named overall winner and World’s Best Steak at the event.
Judging for this year’s World Steak Challenge took place at premium steakhouse Vlees & Co. in Amsterdam. More than 500 steaks were cooked on grills supplied by Synergy Grill and judged blind by a carefully selected judging panel of more than 60 experts.
Judges included Richie Wilson, culinary director of FIRE Steakhouse & Bar; Ioannis Grammenos, executive chef and Meatologist of Heliot Steak House in London; Katie Doherty, CEO at the International Meat Trade Association; butcher and food writer Jessica Wragg; executive chef Luciana Berry, Fred Smith, head of beef at Flat Iron; and foodie Dimas Ramadhan.
“The World Steak Challenge celebrates beef farming on a global scale, and brings together experts, chefs, restaurateurs and trade bodies from across the globe to sample the best steaks that the world of beef has to offer,” says Stefan Chomka, editor of Restaurant. “It’s an incredible feat to bring together so much expertise under one roof to ensure the judging is of the highest calibre.
“Congratulations to every producer that receives a medal at this year’s event.”
The World Steak Challenge is an annual event that gives steak producers and suppliers a much-needed platform to showcase product quality, breed credentials and processing standards on an international stage. It is organised by William Reed the publisher of Restaurant as well as the World’s 50 Best Restaurant and a number of other leading business food and drink publications.
For the full list of winners, visit https:// worldsteakchallenge.com/live/en/page/2025-medallists
NFACC: UPDATES ON THE CODES OF PRACTICE UNDER REVISION/AMENDMENT
BEEF CATTLE CODE UPDATE
The National Farm Animal Care Council (NFACC) recently reported their beef cattle Code Committee (CC) has had a productive summer of meetings. Following an in-person meeting in May, the CC met again virtually in June to wrap up discussions on the Feed and Water, Euthanasia, and Animal Environment chapters of the Code. Online Code subcommittee meetings for the Animal Husbandry and Animal Health chapters were also held periodically from June to August.
The CC continued their discussion on the animal husbandry chapter of the Code of Practice, focusing on topics such as weaning, identification, and pain control. Discussions on this chapter are scheduled to continue into the fall.
The animal health subcommittee also met a number of times throughout the summer, discussing all aspects of the animal health chapter of the Code, from herd health management to health conditions of beef cattle, to safety and emergencies. The subcommittee has made substantial progress on this chapter, with final discussions scheduled for September and October.
Along with continued discussion on various sections of the Code of Practice, the CC also continues to discuss next steps for this Code update, including a schedule of meeting dates through the fall and preparations for Public Comment Period (PCP) in 2026. The CC continues to give consideration to the priorities identified at the outset of the project, including those identified in the top-of-mind survey.
EQUINE CODE UPDATE
Following its third in-person meeting in Vancouver (April 2025), the Equine Code Committee has been hard at work drafting, consolidating, and continuing to edit Code content based on the robust discussions that occurred. Subcommittee Leads organized meetings, coordinated over email, and worked to ensure that their respective chapters were ready for the next in-person meeting. Additionally, over the course of July and August, all available members of the Code Committee met weekly to review chapter content presented by chapter Leads and to offer constructive feedback.
Continued on Page 20
These meetings were all in preparation for the fourth in-person meeting, which was held in August 2025 in Prince Edward Island. Here, the Code Committee gathered to resume deliberations on the draft equine Code with the goal of finalizing a version that was agreed upon by all members prior to submission for Public Comment Period (PCP). For two days, the Code Committee members spoke at length about new and updated material and were able to reach consensus in most areas. Time for review and an additional online meeting in September will allow the Code Committee to finalize the last few topic areas (still under deliberation) and review the Code in preparation for PCP. The Code Committee was also provided with the opportunity to tour the Atlantic Veterinary College large animal surgical facilities.
At the same time, the Scientific Committee report is in the middle of its peer review process, with the Scientific Committee discussing and addressing all comments provided by peer reviewers. The report will be published prior to the launch of the PCP in both English and French.
The goal is that the draft version of the equine Code will launch into its 60-day PCP early 2026. All Code Committee members look forward to the feedback that they will receive.
SHEEP CODE UPDATE
It was a busy summer for the Sheep Code Committee. The second in-person meeting was held in Ottawa at the end of July, with a packed two-day agenda. Subcommittee leads presented an overview of their discussions to date and shared proposed suggestions for full Code Committee consideration for the Environmental Conditions, Emergency Preparedness, Transport, and Husbandry sections. The Scientific Committee also presented the draft chapter on Pain Management to the Code Committee. The complete list of PWIs from the Sheep Scientific Committee report is available here.
Since the July meeting, subcommittees have continued advancing their work and preliminary examinations of additional Code sections are now underway. The draft remains on track for completion by May 2026, with the public comment period scheduled to begin in July 2026. The next in-person meeting of the Sheep Code Committee is scheduled for December, as the Committee builds on its momentum and collective effort to deliver a Code that reflects the best available science and practical experience.
HATCHING EGGS, BREEDERS, CHICKENS, AND TURKEYS UPDATE
Since the March 2025 meeting, subcommittees have been hard at work reviewing their sections, engaging in lively discussions, and tackling complex issues from multiple perspectives. The aim throughout has been to identify practical solutions that will strengthen bird welfare.
Progress remains on schedule, with subcommittees preparing to bring forward their proposed edits for full Code Committee deliberation at the upcoming inperson meeting in mid-November.
many farms here on PEI doing every bit as much as we are as to attain a high level of sustainability. Anyway, we were very surprised when the PEI Cattleman’s Association nominated our farm.
CMB: And then you were attending the Canadian Beef conference in Calgary and you won.
Meanwhile, the Scientific Committee has been making steady progress and is on track to share the first chapters of its report at the November meeting. These chapters will play a key role in supporting subcommittee discussions and guiding Code revisions. The complete list of PWIs for the Poultry Scientific Committee report is available here.
PIG UPDATE
DF: Yeah! That was a very nice moment for us. But I don’t like to use the word win actually. However, being recognized for our commitment was a real honour. If you want to know the truth, it was a pretty humbling experience. As I said to CBC when they phoned me after the conference, I was just floored, really couldn’t believe it.
Online orientation sessions were attended by all Scientific Committee (SC) and Code Committee (CC) members. The orientation sessions provided an overview of the following:
• NFACC Code Development Process
• Administrative activities and requirements
• Anticipated timelines for the project.
CMB: So now that you have been recognized, do you think that will draw more attention and garner more nominations out of Atlantic Canada going forward?
The first in-person meeting will be held in October with both the SC and CC in attendance. Preliminary work to identify priority welfare issues (PWIs) has begun. PWIs are selected because they are important for the welfare of pigs and will particularly benefit from a review of available scientific literature. Note: welfare issues that are not selected as PWIs may still be very important issues that the CC can discuss and incorporate into the updated Code of Practice.
DF: Absolutely. We’ve gotten a lot of good press highlighting the island cattle industry. I’m positive you’ll see more farms in our neck of the woods nominated next year. And I have to give the Canadian Cattleman’s Association recognition for choosing a farm from Prince Edward Island. We are small players in the national beef industry and I think it was a real credit to their organization to recognize us. They treated all the nominees royally and it was a real class act. It was a wonderful experience.
For more information on the overall plan and timeline for all updates underway, visit NFACC at https://www.nfacc.ca/
https://www.yesgroiup.ca
ONTARIO INVESTING $41 MILLION IN AGRICULTURAL RESEARCH INFRASTRUCTURE
Investment will help farmers innovate and stay competitive in the face of U.S. tariffs
The Ontario government is investing over $41 million over the next four years to build and revitalize Agricultural Research and Innovation Ontario (ARIO) infrastructure. As part of the government’s plan to protect Ontario, this investment boosts Ontario-led innovation to give farmers access to cutting-edge solutions that help Ontario’s agri-food sector stay resilient and competitive in the global market.
“Our government is taking action to protect Ontario’s agri-food sector, and we are proud to support farmers and business owners,” said Trevor Jones, Minister of Agriculture, Food and Agribusiness. “Through investments in research and innovation, we are ensuring farmers and business owners have the best solutions to remain competitive against tariffs and ensure families can continue to buy high-quality, Ontario-made food with pride.”
As part of this funding, Ontario is investing an additional $10.5 million in the new Ontario Poultry Research Centre at the Elora Research Station. The new facility will support Ontario’s 1,200 chicken and turkey producers and 432 egg farmers by boosting research on animal welfare, reproduction and meat quality and safety. This funding is in addition to the $13.5 million previously committed by the Ontario government, bringing the total provincial contribution to $24 million.
"We are grateful to the Ontario government for its increased investment in the Ontario Poultry Research and Innovation Centre. This support will strengthen our ability to manage risk and prevent disease, while also opening new doors to enhance on-farm efficiencies, advance sustainable practices, and introduce cuttingedge technologies to benefit Ontario’s poultry sector”, stated Murray Opsteen, Board Chair, Chicken Farmers of Ontario
OTHER ARIO FACILITIES RECEIVING FUNDING INCLUDE:
• $15.5 million in funding for the new Ontario Feed Innovation Centre at the Elora Research Station to provide micro-scale nutritional research for swine, poultry, small ruminants and aquaculture.
• Repairs and upgrades to other properties across the network, including the Dairy Education Centre at the Ridgetown campus, to ensure the continuation of cutting-edge research and innovation to benefit farmers and agribusinesses across Ontario.
ARIO is an agency of the Government of Ontario and owns the province’s network of strategic agri-food research infrastructure, including 14 research station properties, with 5,600 acres and over 200 buildings. Their focus on agri-food research and innovation in areas such as field crops, livestock, greenhouse, horticulture, aquaculture and soil health helps translate research into practical solutions for farmers and agribusinesses.
Tara Terpstra, Board Chair, Ontario Pork said, "Ontario Pork commends OMAFA, the Government of Ontario and ARIO for their continued commitment to research and innovation through the new Ontario Feed Innovation Centre. The Centre will be a welcome complement to the Ontario Swine Research Centre, and Ontario’s agri-food sector."
Investing in agri-food research and helping farmers adopt new innovations are key drivers in achieving the goals of the province’s Grow Ontario Strategy. These investments make Ontario a continued leader in the global agri-food industry through innovative new technologies and practices that help the sector grow and stay competitive.
• The University of Guelph operates 13 of the centres through the Ontario Agri-Food Innovation Alliance, a partnership between the University of Guelph (U of G), the Ontario Ministry of Agriculture, Food and Agribusiness and ARIO. The remaining property is managed by Vineland Research and Innovation Centre.
• The Ontario Agri-Food Innovation Alliance agreement is an economic funding driver for the agri-food sector that supports more than 1,500 jobs across the province and contributes $1.4B annually to Ontario’s GDP.
• Ontario is celebrating our 27th annual Agriculture Week from October 6-12, 2025. Join us in honouring the dedicated farmers, processors and distributors who provide the finest local food and beverages Ontarians enjoy every day.
QUICK FACTS
THE FUTURE OF AGRICULTURE IS SUSTAINABLE AND PROFITABLE
By Martha Baker, Alltech
Sustainability, carbon credits and Scope 3 emissions dominate agriculture today, driven by climate pressure from brands, financiers and governments. They now look beyond their operations to cut the footprint from farm to shelf.
DEPENDING ON WHERE YOU LIVE, YOU MAY ALREADY BE SEEING:
• Regulatory limits on methane emissions from cattle (Denmark; California, US)
• Restrictions on nitrogen emissions from cattle (Ireland)
• Government payments to improve productive efficiency (Canada beef cattle)
• Slaughter age limits for cattle (China)
• Restrictions around deforestation (globally)
• New opportunities to participate in the voluntary carbon market
The voluntary carbon market has evolved over the past several years. In the United States, it began with energy and oil companies compensating dairy farms for capturing methane coming off manure lagoons — a classic example of what is now known as carbon offsetting, where the company funding the intervention does not utilize commodities produced on the farm.
Today, the focus is on carbon insetting. This model involves a shared value chain: the company paying for the emissions reduction or carbon capture also uses the farm’s milk, milk components, meat or grain that is produced by the farm. These reduction claims can be shared across businesses in the supply chain and, importantly, they allow agriculture to fully report on its impact and progress.
REGULATORY SHIFTS AND CHANGING PRIORITIES
Between 2020 and 2024, the USA saw its largest government investment in agricultural sustainability in its history, with US$369 billion in Climate Smart funding. These grants supported regenerative agriculture practices, water conservation, methane reduction on farms and more. In the past 18 months, however, much of that funding has been frozen, and government priorities have shifted.
Meanwhile, Europe is still moving forward with new regulations that impact companies operating in its jurisdiction, including many U.S.-based brands. At the same time, many companies are walking back their previously stated Science Based Targets Initiative (SBTi) goals as reporting frameworks evolve.
FROM OFFSETS TO INSETS: A SHIFT IN CARBON STRATEGY
Despite these shifts, the final goal has not changed: to produce as much protein and nutrition as possible while minimizing environmental impact and using fewer natural resources.
WHAT DOES THIS MEAN FOR FARMERS AND RANCHERS?
So, where does this leave farmers and ranchers? How do you stay aligned with expectations and take advantage of the available opportunities?
First and foremost, remember: Anything you do on your farm that improves feed efficiency and productivity or cuts down on your waste can also reduce your carbon footprint. Fundamentally, this is the key to any successful business: Increase your output without disproportionately increasing your inputs. When sustainability is done correctly, it will positively impact your operation’s profitability.
AS YOU CONTINUE TO LOOK FOR OPPORTUNITIES TO ENGAGE, HERE ARE SOME KEYS TO SUCCESS:
• Implement practices that make your operation more efficient and profitable first; consider environmental sustainability second.
• If an intervention only reduces emissions, dig deeper.
• Who is paying for the intervention? Is it the farm? The government? Cooperative funding? How secure is that funding?
• Are you guaranteed to at least break even or cover your cost to implement? Or better still, profit from the effort?
• Evaluate the robustness and credibility of the carbon project. Consider:
o Is the project set up to meet GHGp (greenhouse gas protocol accounting) and SBTi? Is it being audited by accredited auditors associated with accredited thirdparty organizations? Having multiple third parties involved increases the credibility of the program as it ensures that methodologies are being followed and that data is properly and robustly audited.
o Look for projects that offer flexibility. An offset (carbon sold outside of the value chain) can be an inset, but not all insets qualify as offsets. This becomes extremely important if there isn’t a guaranteed inset buyer of the carbon program. You want the project to have the option to market to both the inset and offset buyer (even if the target audience is an inset buyer).
o Seek opportunities to build relationships: Brands have a strong desire to connect with farms they purchase from. They want to know you! This is your opportunity to help them better understand agriculture.
o If you do not have a direct line to a brand or your processor does not have a program, look at the open market projects available. Concord Agriculture Partners, for example, has carbon projects in the USA, Canada and Europe, and is looking to expand into Latin America. Their carbon projects are based on globally created and accepted methodologies and have returned millions of dollars to farmers through carbon reductions tied to using a plant-based product that drives productivity and feed efficiency.
A SHARED VISION: STEWARDSHIP AND RESILIENCY
Farmers have always understood sustainability, long before it became a buzzword. Sustainability is not a new topic for us. We have called it “animal husbandry” and “being stewards of the land.” Now, brands call it “supply chain resilience”, and they realize that they have a role in creating it. But, in the end, we are all talking about the same thing: doing what is right for the right reasons. You care for the animals and land that nourish the world. That’s powerful — and it is time the broader world sees it, too.
To explore ways to engage in carbon projects in your region, visit https://www.alltech.com/
UNEVEN GROUND - CANADA’S BUSINESS TAX DISADVANTAGE COMPARED TO THE U.S
Whether it is debating who has the best hockey team or who grows the best crops, our rivalry with our southern neighbor has always been part of our national DNA. In sports or business, competition serves as a powerful engine that fosters creativity, stimulates innovation, and breaks down established barriers. However, in recent years, policymakers at all levels of government have neglected our tax competitiveness, allowing the U.S. to gain a significant advantage.
Weak Canadian productivity has resulted in an average output per person lower than nearly every U.S. state. This translates into a reduced standard of living for Canadians, with higher prices and fewer opportunities for Canadian workers
CANADIAN PROVINCES AND U.S. STATES, RANKED BY GDP PER CAPITA IN 2022, THOUSANDS USD, ADJUSTED FOR PURCHASING POWER
Much of this shortfall can be blamed on Canada’s high level of taxation, preventing businesses from investing in their operations and the economy. These costs dissuade entrepreneurs from starting new businesses and established businesses from expanding their operations. By contrast, the U.S. has become an increasingly competitive place to do business, with recent tax cuts further widening the gap between the two countries.
Canadian policymakers cannot control the actions of a foreign country, but they do have power over domestic policies, especially when it comes to taxation. While identifying areas to reduce the tax burden may seem like a complex task, CFIB has taken a thoughtful look at these questions.
In its latest Uneven Ground: Canada’s Business Tax Disadvantage Compared to the United States, CFIB analyzed the tax burden of typical micro (4 employees) and small (25 employees) businesses in all ten provinces and 20 U.S. states. Findings are concerning; businesses face a significantly higher tax burden in Canada than in the United States. Canada’s tax environment is uncompetitive and risks driving investment south of the border.
A closer look at the results reveals that while Manitoba ranks as one of the least burdensome provinces in Canada, it still places 18th out of 30 overall, where a higher ranking reflects a greater tax burden.
In contrast, its American neighbors offer more competitive fiscal conditions. North Dakota stands on the winner’s podium, largely due to its lack of income tax. Minnesota also emerges as an attractive and business-friendly option with relatively low payroll taxes.
While Manitoba offers very competitive payroll taxes, major gaps in property and income tax loads account for most of the gap with its neighbor. For example, a microbusiness in Winnipeg pays more than twice as much in property taxes as its neighbor in Fargo, North Dakota.
To reduce the cost of doing business and provide liquidity for businesses to pay off debt or invest in their business, the federal government should significantly reduce the federal Small Business Tax Rate (SBTR), currently set at 9%. The next highest rate is 4% in Quebec, while Manitoba’s SBTR sits at a low of 0%. The federal and provincial governments should also increase the maximum threshold of the small business deduction from $500,000 to $700,000 and index it going forward. It has not changed since 2009 and has lost its value over time.
To further encourage investment and support business growth in Canada, the federal government should expand and make Immediate Expensing and the Accelerated Capital Cost allowances permanent. It should also exempt an additional amount of capital gains earned if reinvested in Canada.
Although we cannot change the weather, we can change our tax policies. Canada has long taken pride in standing up to its powerful southern neighbor— now is the time to do so and provide a more fiscally competitive environment to Canadian businesses, including our agri-businesses.
Juliette Nicolaÿ is a Bilingual Policy Analyst for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members (5,200 agri-business members) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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