Issue # 245: October 2, 2012 - Alberta Cattle Feeders ...

E-mail: knummi@cattlefeeders.ca Telephone: 403-250-2509 ? Toll free: 1-800-363-8598

Fax: 403-209-3255 ? Website: cattlefeeders.ca

Issue # 245: October 2, 2012

To: ACFA members From: Bryan D Walton, CEO

ACFA and the XL Beef Recall

I'm here in Ottawa attending the Beef Value Chain Round Table (BVCRT) and other meetings with industry and government officials. I wanted to inform the membership about our activities associated with recall of beef produced by XL Foods Inc. on August 24, 25, 28, 29 and September 5, 2012. This issue became acute with the closure of the plant on September 27th and we understand at this writing that reopening is imminent. ACFA and NCFA have been in communications with the federal Minister, CFIA president and his officials, Premier Redford and Minister Olson. We have encouraged Canada Beef Inc. to coordinate industry communications and we have been in direct contact with the principals of XL Foods. Here are the highlights:

September 27 ? Message to Rob Meijer, President of Canada Beef Inc:

Rob - the headline in today's paper brings another dimension on the safety of the beef we consume. Normally the issue of contamination is focused on ground beef, not whole muscle cuts. However, Costco's tenderization process which could potentially push harmful bacteria into the interior of a steak may leave consumers with the opinion that all beef is now suspect. I've always felt that BIC, now CBI is the organization to promote, and I would say, defend our product. I'm wondering in light of the recent developments if CBI is considering an information campaign to put the record straight and give consumers confidence in what we produce and they consume.

Today at the BVCRT we gained support to have CBI coordinate industry efforts around communications to retailer, consumers and industry stakeholders. NCFA/ACFA will be involved. We have emphasized the importance of a strategic and coordinated approach especially since XL Foods has been invisible in the media.

CFIA and Minister Ritz

On Friday September 28, started e-communications with the Dr. Harpreet Kochhar, Executive Director of Western Operations for CFIA followed by a letter (See Ringside #244). A copy of this letter was forward to Minister Ritz with a request for a meeting in Ottawa. On October 1 we met with the CFIA George Da Pont and his senior officials for a BCPAC meeting at which time we learned more about the details of this recall and gained a better understanding of the recall process. Outcome of that meeting was that CFIA will be more proactive about engaging industry via conference calls to information is more readily available. ACFA and NCFA Boards have been kept updated.

Should you not want to receive this bulletin call the ACFA office to remove your name from the receivers list.

XL Foods Inc

On Friday September I spoke to Brian Nilsson to inquire about any support we could offer. He urged us to keep up the pressure to have authorities reopen the plant. In a further exchange of e-mails we have arranged for a Board Call (including the Chairman of the NCFA) with Mr. Nilsson initially on October 4, now postponed, at his request to Monday October 8, 2012. The postponement was on account of a planned visit from CFIA, and now the Minister who arrived in Brooks today. Right after our discussion with Mr. Nilsson on Monday the Board will consider what ACFA/ NCFA can do to support the company in getting on its feet again.

Government of Alberta

On Sunday September 30, ACFA was invited to a meeting with Premier Redford and Minister Verlyn Olson. Here is an excerpt of my summary to the Board that same day:

1. Olson has been in regular and direct contact with federal Minister ? emphasis has been on getting the plant reopened. Further dissection of the issue will come later. 2. No firm date has been given for reopening but it is hoped that this will happen this week ? extra ordinary testing may be required to convince customers to take product (and possibly to satisfy USDA -my comment). 3. Ritz has been in contact with his US counter parts to ensure that XL can resume shipping to the US as soon as possible. Important that USA and Canada are on the same page. I have asked for a meeting with Ritz when Bill Jameson and I are in Ottawa this week while we are there for Beef Value Chain Round Table meetings. I also expect to see CFIA President Da Pont tomorrow afternoon. 4. When plant reopens producers want to know that they will get paid ? no commitment form GOA on backstopping this with an assurance fund. 5. XL would entertain an industry lead move to have another operator run the plant (excluding the business end of buying cattle) ? no consensus on this. 6. Information on this situation is incomplete and XL has had much to offer so we don't know if it's the operations or the operator. 7. Industry and government will work together on messaging to reestablish consumer confidence. (I believe that Canada Beef Inc should lead in coordinating communication efforts, developing key messages and organizing conference calls rather that e-mail. I sent Rob Meijer a note on this last week and suggested it again today to CBI Chairman Chuck McLean).

ACFA has been invited by Deputy Minister, John Knapp to be part of an industry-government task force that will be formed in short order to address issues arising from the recall.

Conclusion

1. Our focus will be on three fronts; a) Support for the continuing operation of the plant b) Evaluating options to support the membership c) Contribution to a Communications Strategy and improved interaction with industry partners on government

2. In accordance with our Strategic Plan we will deliver value to members by providing regular and timely communications regarding the aforementioned activities. Feedback from the membership is welcomed.

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