Canada Beef responded quickly to the COVID-19 pandemic. Our work in the early days of the crisis was to resolve immediate issues and be resilient in the face of uncertainty and change. The immediate issues included:
- Carcass balance (unprecedented demand for ground beef along with out-of-stock situations).
- Shift from foodservice to retail demand.
- Rolling plant closures, slowdowns and labour union disputes.
- Pressure on livestock price, utilization and throughput.
- Meat price volatility, supply and demand.
- Public perceptions about food chain delivery systems.
- No industry protocol for how to navigate global pandemic.
As we recover, we need to adapt to the new normal. These new norms include:
- Consumers with less disposable income.
- Shifts in consumer behaviours around cooking and eating out of the home.
- Limited understanding of foodservice/retail impact in terms of timings for re-opening and C-19 precautions (reduced capacity at foodservice).
- Logistics around supply base may look different based on ability to survive in this new environment.
- Uncertainty over future livestock prices, processing costs and export demand.
- Uncertainty over future meat prices.
- Global growth forecast to take a major hit.
And finally, as we look towards a reset in this new world, we need to rebrand and retrench the Canadian beef industry in the post-COVID-19 environment. Issues we need to be aware of as we move forward include:
- Consumer perceptions and trust in the meat processing industry will be tested.
- Will today’s consumer behaviour changes be the new norm or will they continue changing?
- Will we have a new set of consumer drivers and how will we measure them?
- Kitchen-captive consumers have spent a lot of time cooking together at home, will this hold?
- Plant-based protein vs single-source animal protein perceptions.
- Capture and implement opportunities to reshape the image of the beef industry.
- Embrace new consumer behaviours by delivering strategies to meet their needs.
Domestic Retail Market Insights—Demand is holding strong
- Ground beef demand dominating the market basket (lean ground beef price $15.98/kg vs boneless skinless chicken breast $8.58/kg).
- Increase in the cost of beef and limited product assortments.
- Temporary shortage of AAA+ (Prime -2.2%, AAA-9.5%, AA -10.5% YTD May 16).
- Hips/Chucks in high demand, commodity specs being offered.
- Feature activity supply uncertainty moving into the grilling season.
- Pork/poultry continue to be featured at aggressive price points.
Domestic Foodservice Market Insights—The new normal
- Some restaurants are reopening with regional C-19 protocols based on jurisdiction.
- Limiting capacity to 50% occupancy plus C-19 procedure costs raises economic viability concerns.
- Food costs have gone up, will consumers have the means to absorb the cost to re-open and sustain full-service operations?
- Many independent and some national franchise groups are permanently closing operations.
COVID-19 Canada Beef Strategy
Moving forward, Canada Beef has developed a plan that focuses on the following tactics:
- Gather and Interpret Data.
- Pivot Our Programs.
- Keep Our Stakeholders Informed.
- Create Solutions to Mitigate Impact.
- Plan for the Post-COVID World.
Gather and Interpret Data
In a situation like Covid-19, information is critical to understanding how to respond. During the pandemic, Canada Beef has participated in regular calls with Industry leaders calls, town hall meetings for producers and industry/government round tables. In addition, reports with up-to-date information on domestic and export markets are compiled and circulated along with other industry data and publications.
Pivot Our Programs
With the reality of everyone cooking at home, Canada Beef pivoted the planned One & Only BEEF campaign to focus on recipes, video influencer outreach, social media and television spots.
The original strategy of the CRAVE Campaign was to combat the interest in simulated meat products. The campaign pivoted to celebrate the CRAVE-factor of beef with inspiring meal ideas to aid families in quarantine cooking and a focus on ground beef – the budget favourite.
Another retail program launched was “Enjoying Canadian Beef and Veal at home” with a retailer kit that included clear-view preparation labels (grilling, marinating, simmering, stir-fry, pot roasting, stewing, kabobs, oven roasting, yakiniku grilling) along with scale label adaptation support. This program was supported as well by the One & Only Beef Program (focus on ground beef and veal recipes) and the Independent Retail Operators Program (support for small operations).
The team is working on a new Slice & Save Program featuring seven sub-primal cuts representing a wide selection to stretch the consumer’s dollar and build sales volume. This program removes the labour component from the retailer and encourages consumers to stock up on beef. The program will be supported by new videos which will be launched in June.
The team is also working on a number of new initiatives (to be launched in June) that support home cooks and chefs with videos and resources. These include:
- Value-cut grilling steak tenderizing program (with 20-minute marinade information).
- Home Chef videos produced by the CBCE for consumer and trade. This “hands in pans” style production approach for a range of skill levels.
Keeping Stakeholders Informed
Canada Beef is taking a lead in providing information and updates to stakeholders and industry partners. Global Market Intelligence/COVID-19 Dashboard Report; weekly market insights reports; the Canada Beef Performs monthly publication and resources for consumers and industry all support a robust information stream.
Solutions to Mitigate Impact
These solutions include:
- COVID-10 training course (available in eight languages) for meat processing employees (plant, retail, foodservice etc.). Read more about this resource in this newsletter article.
- The COVID-19 App which allows users to record health assessment information electronically versus the current paper route for processing plants, large feedlots, retail and foodservice etc.
- The COVID-19 Reporting Template is a standardized method for handling a diagnosis of a case of C-19 (plant, retail or foodservice level)
- Remote Camera Grading: Solutions for plants in the event of grader C-19 illness or absence
Post COVID-19 Planning
Canada Beef is implementing the following to support COVID-19 tactics and initiatives:
- Canadian Beef Performs is a trade-based micro-site, making it easy for retailers to access new resources, tools and video productions.
- Canadian beef direct-to-consumer marketing programs and support services will be made available.
- Consumer marketing solutions will be extended to the export marketplace.
- Global re-branding strategy based on end-user and consumer trends post-C-19.
- Global food safety and quality assurance framework and support.
The Canada Beef team has focused on supporting industry and stakeholders during this crisis, providing information and resources. We are all in this together and going forward, our programs, services and footprint will adapt to the needs of the global marketplace post-COVID-19.
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