Industry Code: 10100
This industry describes large and small meat processing and specialty meat processing businesses with volume and production capabilities to serve the wholesale distribution and/or hotel, restaurant and institutional (HRI) markets.
Operation Details:
The meat processing industry is diverse, competitive and evolving. This industry classification describes all forms of meat processing: beef, poultry, fish, hogs, horses, sheep, and wild game. Business operations and activity range from full sized integrated processing plants to smaller-sized specialty meat processing companies. Processes may be fully automated, semi-automated or manual, but volume and production capacity and activity is sufficient to serve the wholesale distribution and/or HRI markets. Businesses may be subject to either federal or provincial supervision or inspection.
This industry covers the full spectrum of meat processing activities which can include slaughtering, production of primal and sub primal cuts (first and early cuts), portion cutting (producing meal portions) and value added processing of meat products. Integrated meat processing businesses will have the full range of activities while other business may specialize in certain segments of the industry. Companies will generally have distribution activities including warehousing and trucking.
Many businesses in the industry do not slaughter and will only purchase halves, quarters, bulk or boxed meats or meat trimmings and then further process these products by portion cutting or producing specialty meat products.
The production of specialty meats includes products such as sausage, hamburger, hams, salami, patties, pates, pepperoni sticks, jerky, etc. Production of specialty meat can include grinding of meat, blending meat with spices and seasonings, forming the product, freezing, pre-cooking, smoking and subsequent packaging of the product. Businesses may have an in-house lab/quality control room to ensure product satisfies government or customer specifications.
Businesses in the industry may also sell an assortment of complementary product purchased from third parties that are sold ('flipped') without repackaging or minimal handling to offer a full service and product line to customers - again, to the wholesale distribution and/or HRI markets.
Processing equipment in the industry can include tubs, vats, mixers, separators, scales, conveyors, knives, saws, grinders, extruding/forming machines, curing ovens, and freezing tunnels (nitrogen based). Product handling equipment can include packaging and labelling machines, pallet jacks, fork lifts, refrigerated coolers and warehouses. Workers can include meat cutters, labourers, process equipment operators, technical staff, sales staff, warehouse staff, shippers/receivers, drivers, administrative staff and facilities maintenance personnel.
Underwriting Considerations:
If the prime business function and revenue is from servicing the wholesale distribution and/or hotel, restaurant and institutional (HRI) markets, the business is classified in industry 10100.
If the prime business function and revenue comes from in-store display cases and over-the-counter retail sales to the general public, the business is classified as a butcher shop/home provisioner in industry 63103.
An industry review concluded that typically, kill facilities are highly automated and represent only a small portion of the overall meat processing industry in terms of insurable earnings and claims. It is recognized that not all meat processors kill, but when it is conducted, it is an incidental activity within the overall business and forms part of this industry.
Businesses with slaughter operations may also be involved in rendering and hide treatment and do not require an additional industry. Businesses involved exclusively in hide treatment or rendering are classified in industry 10104.
It is common for meat processing companies to sell an assortment of products purchased from third parties which do not require any further processing. This is referred to as 'flipping' of product. Revenue from the sale of flipped product may exceed revenue from the sale of product which the company processes. Regardless of the source of revenue, companies which combine meat processing with the sale of complementary products, generally do not meet policy 07-01 for separate industry classifications and will have the entire business classified in industry 10100.
Due to the nature of processing meat, there are government regulations with respect to sanitation and cleaning of equipment. This requires the regular cleaning of equipment and floors, either daily or following shifts. Cleaning is done with the use of high pressure water hoses and detergents. Meat processing firms may have staff hired to perform the cleaning duties or alternatively may hire contractors to perform the cleaning. Firms contracted to provide on site cleaning of meat processing equipment will be classified in this industry.
Industry Custom Pricing: Modified Experience Rating and Waiving Cost Relief Option
This industry has chosen to participate in Industry Custom Pricing. Effective January 1, 2009, employers in this industry participate in the Waiving Cost Relief option and the Modified Experience Rating option.
Under the Waiving Cost Relief option, costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.
With Modified Experience Rating option, the following experience rating features will be used in determining the premium rate for employers in the Large Employer Experience Rating Plan:
-Maximum discount or surcharge of 60%
-Maximum participation of 100%
-Maximum experience used of 100%
-Participation rate of 1% for every $2000 in premiums
Premium Rate History:
Activities:
Abattoir
Fish Processing Plants
Hamburger Manufacturing - Wholesale
Meat Processing
Meat Processing Plants
Poultry Processing Plants
Processing Plants - Meat
Processing Plants - Poultry
Sausage - Mfg and Wholesale
Specialty Meat Mfg for wholesale distribution
Rate Group History:
This industry was reviewed in 1991, 1994 and again in 1998. The present rate group is comprised of businesses that process meat-based food products and includes processing of meat by-products.
This industry describes large and small meat processing and specialty meat processing businesses with volume and production capabilities to serve the wholesale distribution and/or hotel, restaurant and institutional (HRI) markets.
Premium Rate History:
Activities:
Abattoir
Fish Processing Plants
Hamburger Manufacturing - Wholesale
Meat Processing
Meat Processing Plants
Poultry Processing Plants
Processing Plants - Meat
Processing Plants - Poultry
Sausage - Mfg and Wholesale
Specialty Meat Mfg for wholesale distribution
Operation Details:
The meat processing industry is diverse, competitive and evolving. This industry classification describes all forms of meat processing: beef, poultry, fish, hogs, horses, sheep, and wild game. Business operations and activity range from full sized integrated processing plants to smaller-sized specialty meat processing companies. Processes may be fully automated, semi-automated or manual, but volume and production capacity and activity is sufficient to serve the wholesale distribution and/or HRI markets. Businesses may be subject to either federal or provincial supervision or inspection.
This industry covers the full spectrum of meat processing activities which can include slaughtering, production of primal and sub primal cuts (first and early cuts), portion cutting (producing meal portions) and value added processing of meat products. Integrated meat processing businesses will have the full range of activities while other business may specialize in certain segments of the industry. Companies will generally have distribution activities including warehousing and trucking.
Many businesses in the industry do not slaughter and will only purchase halves, quarters, bulk or boxed meats or meat trimmings and then further process these products by portion cutting or producing specialty meat products.
The production of specialty meats includes products such as sausage, hamburger, hams, salami, patties, pates, pepperoni sticks, jerky, etc. Production of specialty meat can include grinding of meat, blending meat with spices and seasonings, forming the product, freezing, pre-cooking, smoking and subsequent packaging of the product. Businesses may have an in-house lab/quality control room to ensure product satisfies government or customer specifications.
Businesses in the industry may also sell an assortment of complementary product purchased from third parties that are sold ('flipped') without repackaging or minimal handling to offer a full service and product line to customers - again, to the wholesale distribution and/or HRI markets.
Processing equipment in the industry can include tubs, vats, mixers, separators, scales, conveyors, knives, saws, grinders, extruding/forming machines, curing ovens, and freezing tunnels (nitrogen based). Product handling equipment can include packaging and labelling machines, pallet jacks, fork lifts, refrigerated coolers and warehouses. Workers can include meat cutters, labourers, process equipment operators, technical staff, sales staff, warehouse staff, shippers/receivers, drivers, administrative staff and facilities maintenance personnel.
Underwriting Considerations:
If the prime business function and revenue is from servicing the wholesale distribution and/or hotel, restaurant and institutional (HRI) markets, the business is classified in industry 10100.
If the prime business function and revenue comes from in-store display cases and over-the-counter retail sales to the general public, the business is classified as a butcher shop/home provisioner in industry 63103.
An industry review concluded that typically, kill facilities are highly automated and represent only a small portion of the overall meat processing industry in terms of insurable earnings and claims. It is recognized that not all meat processors kill, but when it is conducted, it is an incidental activity within the overall business and forms part of this industry.
Businesses with slaughter operations may also be involved in rendering and hide treatment and do not require an additional industry. Businesses involved exclusively in hide treatment or rendering are classified in industry 10104.
It is common for meat processing companies to sell an assortment of products purchased from third parties which do not require any further processing. This is referred to as 'flipping' of product. Revenue from the sale of flipped product may exceed revenue from the sale of product which the company processes. Regardless of the source of revenue, companies which combine meat processing with the sale of complementary products, generally do not meet policy 07-01 for separate industry classifications and will have the entire business classified in industry 10100.
Due to the nature of processing meat, there are government regulations with respect to sanitation and cleaning of equipment. This requires the regular cleaning of equipment and floors, either daily or following shifts. Cleaning is done with the use of high pressure water hoses and detergents. Meat processing firms may have staff hired to perform the cleaning duties or alternatively may hire contractors to perform the cleaning. Firms contracted to provide on site cleaning of meat processing equipment will be classified in this industry.
Industry Custom Pricing: Modified Experience Rating and Waiving Cost Relief Option
This industry has chosen to participate in Industry Custom Pricing. Effective January 1, 2009, employers in this industry participate in the Waiving Cost Relief option and the Modified Experience Rating option.
Under the Waiving Cost Relief option, costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.
With Modified Experience Rating option, the following experience rating features will be used in determining the premium rate for employers in the Large Employer Experience Rating Plan:
-Maximum discount or surcharge of 60%
-Maximum participation of 100%
-Maximum experience used of 100%
-Participation rate of 1% for every $2000 in premiums
Rate Group History:
This industry was reviewed in 1991, 1994 and again in 1998. The present rate group is comprised of businesses that process meat-based food products and includes processing of meat by-products.