The new president of Canada Beef Inc. has delivered a blunt message about how the new organization plans to promote and market Canadian beef.
“If people and companies don’t share our mandate, our vision and our goals and priorities, we will choose not to do business with them,” Rob Meijer told the Alberta Beef Producers annual meeting held Dec. 5-7 in Calgary.
“If they do not return on investment to this organization and you as producers, we will not spend a penny. It is going to get political and we are going to have to turn down some people that weren’t turned down before.”
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The new company is a consolidation of the Beef Information Centre and the Canada Beef Export Federation with funding from the national checkoff agency.
It has a large board of directors representing producers, processors and distributors, who want Canadian beef to make a comeback on the global stage. It is not a lobby or policy group.
Meijer said there have been good programs and partnerships in the past, but Canada needs to rebuild its image as a clean, safe place with abundant water and open environment.
Canada’s trade missions must now be focused on beef promotion rather than hospitality.
“They don’t necessarily need to see the mountains,” Meijer said. “They need to see the industry. If they want to come here to see Banff, I’m not bringing them here.”
Canada Beef will launch its new strategic direction Jan. 1.
The 15 month strategy includes targeted promotions, marketing and education for consumers, retailers, food service, wholesale distributors and importers.
“We have not consistently created commitment to Canadian beef,” he said. “There are many markets out there in the world that will switch out Canadian beef for U.S. or Australian, whether it be price or any other perceived attribute, in a heartbeat.”
Time cannot be wasted on discussions, consulting and meetings hoping to gain access, he added.
“If the Americans want to do something, they’ll do it. If they want to create a program, they’ll do it. If we sit around, they will do it better and sign deals and we will get nothing.”
Meijer said customers must be in markets that provide the greatest value for high quality grain fed beef and veal.
Few are committed to it.
Costco sells exclusively Canada AAA beef, but it has said demand is increasing and it cannot always fill the orders. Meijer does not want the company to import from the United States. He said Canadian beef must be seen as a valuable product rather than one available at a discount.
“I don’t want somebody in a foreign market like Japan saying I can’t get enough supply from the U.S., so give me Canadian, but at what price discount do I get it.”
There are also back door deals that don’t recognize the Canadian brand or pay a premium.
For example, Canada ships beef to Hong Kong and Macau, which are back doors into China. It is not known as Canadian product and is probably sold at a discounted price.
“It happens every day. Every day we get discounted in some way,” Meijer said.
South Korea has been off limits to Canadian beef for eight years and must be treated like a new market if it ever returns.
However, Canada may be shut out because the U.S. achieved a free trade agreement with Korea earlier this fall. If that is the case, Meijer said, perhaps other markets, such as Russia, need to be pursued with more fervour.
However, as a small organization with limited funds, Canada Beef will not get into a market promotion spending spree to compete with the Americans and Australians.
“Meat and Livestock Australia are everywhere. They don’t have to do anything,” he said.
Consumers in Asia know the quality is different but the Canadian product is not available or it is more expensive. It has to be different to justify the higher price.
Canada used to promote its traceability system as a marketing advantage, but Meijer said it should not be emphasized.
Canada has regained markets around the world since BSE shut borders in 2003, but Meijer questioned whether they all provide value.
“Market access is important and I would continue to support what the government is doing in market access,” he said in a later interview.
“What I am saying is as an industry, we need to make better decisions communicating to the government what is valuable or not.”
He said certain policy decisions should not have been made just to get access.
Countries were allowed to evaluate individual plants and then would certify only a few as acceptable exporters. Approval of Canada’s entire system should have been demanded so all plants would be acceptable.
He said Canada was too conciliatory and should have said all or nothing rather than allow separate approvals for individual plants.
As well, Canada should never have accepted the younger than 21 months rule for Japan because surrounding nations question why they should accept beef from cattle younger than 30 months.
“We are trying to be too many things to many people rather than just saying we are not going to do that,” he said.
