Study delves into centralized transfer options for Ontario deadstock collection

By Lilian Schaer for Livestock Research Innovation Corporation

A follow up study taking a deeper look into finding solutions to the Ontario livestock industry deadstock management challenges has identified developing additional holding or transfer capacity as a way to reduce costs for both collectors and farmers. 

This is one of five recommendations in a new report recently completed for Livestock Research Innovation Corporation (LRIC) by consulting firm MacTavish. LRIC has been leading efforts by the livestock sector to find workable solutions for managing on-farm livestock mortalities.  

Ontario is a large province with regionally diverse livestock production, meaning there is no one solution that will work for all livestock commodities in all geographies. The environment is a challenging one for producers with some having to wait days for pick up depending on demand and/or collector availability. Collection costs are increasing, and the provincial collector licensing system has left some regions underserviced while others have more collectors than needed. 

Collectors, composters and renderers, in turn, are also dealing with rising costs, a complicated regulatory system and the realities of keeping their businesses economically viable. 

The need for solutions led to a report completed last year by the same consultancy on the status of deadstock management in Ontario. That study was funded by Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) in response to a request from Dairy Farmers of Ontario, Beef Farmers of Ontario, Ontario Sheep Farmers, Veal Farmers of Ontario, and the Ontario Federation of Agriculture. 

This initial report spawned a series of discussion sessions in 2023 hosted by LRIC that involved government, regulatory authorities, farmers and deadstock industry representatives including renderers, composters and deadstock collectors. 

Investigating collaboration around centralized transfer stations

This resulted in an agreement to focus on the concept of centralized transfer stations that would provide collection points for deadstock drop off and pick up by the existing network of licensed collectors and disposal facilities. Multiple local collectors could use these central transfer stations, lowering pick up costs for producers and providing much-needed volume for collectors. 

Existing landfill facilities made it clear they are not interested in becoming part of the deadstock collection system, and the regulatory environment for establishing and maintaining these stations is complex, involving multiple agencies and pieces of legislation. 

“Early in this project, it became evident from speaking directly with collectors and industry stakeholders that collectors are already using some form of transfer stations,” says study lead Jennifer MacTavish. “This is either by providing farmers with on-farm storage options or partnering with other collectors to store carcasses to make transport more economical.”

One example is an on-farm refrigerated container that is only picked up when full, decreasing collection costs per carcass. Another option is a collector-owned central station where they bring and store carcasses until they have sufficient volume to be able to economically deliver them to the final destination. 

“We learned quickly that collectors are already individually taking leadership around the issue of transfer stations,” notes MacTavish, adding that while some are willing to work collaboratively across the sector, others have no desire or intent to do so. 

“Ultimately, although this project has successfully brought them all to the table, it’s economics that will dictate if and where they locate transfer stations and where they choose to offer pickup – and there is little the industry can do to influence those economic realities,” she says. 

According to MacTavish, this resulted in the report shifting to include data and information that could be useful to those looking to establish or expand central collection options, as well as development of a new set of recommendations. 

Funding for additional holding or transfer capacity

Current and future deadstock funding programs for industry or farmers should include eligibility for the capital, labour and planning costs needed to establish additional on-farm or centralized holding/transfer capacity for carcasses. For example, this means ensuring cost-share percentages are high enough to support the purchase of cold storage units for central locations. 

Ensuring consistency in understanding and enforcement of regulations

There is a need to work with regulatory agencies to ensure there is clear understanding of applicable regulations and how they are enforced. While the full-time collectors interviewed for the study have no issues with the need to be regulated, there is a perception that regulators do not seem to communicate with one another. As well, there is frustration around inconsistencies between inspectors in terms of how regulations are interpreted and enforced. 

The regulatory framework governing collection and disposal of deadstock is complex, involving both provincial agencies as well as the Canadian Food Inspection Agency if Specified Risk Material (SRM) is at play – parts of cattle that could potentially contain the agent that causes Bovine Spongiform Encephalopathy (BSE). 

Reviewing the provincial licensing system

Interviewed collectors indicated there should be a review of the current suite of licensed collectors who are active as well as exercise some kind of audit or review of licenses with no activity. This would ensure all licensed collectors are active and compliant with the regulations and those who aren’t can either be brought into compliance or have their licenses withdrawn. 

Producer incentive program for deadstock services

Government and provincial livestock producer organizations are encouraged to considering developing a pay-back or incentive program for farmers who use licensed deadstock collection to help support the economic viability of this service that is very much needed by farmers. Beef Farmers of Ontario delegates passed a resolution in support of this concept at the organization’s February 2024 annual general meeting. 

Continued industry communications

It is recommended that livestock commodity organizations or representatives organize at a minimum, a yearly meeting with the deadstock industry.

There is continued recognition that there are no easy answers or one-stop-shop solutions to the deadstock challenge that will work equally well for all producers and all livestock commodities in Ontario. However, there is benefit to producers, deadstock service providers and government maintaining open lines of communications to boost continued understanding of the issues and challenges each stakeholder faces. 

Funding for the report was provided to LRIC by the Ontario Ministry of Agriculture, Food and Agribusiness. For more information or a copy of the report, please contact Kelly Somerville. 

This story originally appeared in the August 2024 edition of Milk Producer.