Issue 8

spring 2014
haida enterprise corporation
quarterly newsletter - issue 08
iinaasdll haico quarterly newsletter
Iinaasdll · people growing
in this issue
CEO's Message 2
Haida Gwaii Youth Assembly 3
Haida Wild Expands Operations 4
Skidegate Community Meeting Positive 5
BC Ferries Haida House Vacations 6
COO Keeps Operations Moving 7
Englefield a Customer Favorite 8
Taan Granted Secure Woodlands Tenure 9
Five Star Experience at Haida House 10
2013/14 Annual Report 11
HaiCo Directory 15
Logs find Viable Market in China 16
Fabulous Dining at Haida House 17
Taan’s Cedar Lumber Marketing 18
Board Governance Training 19
Taan Forest Public Tour - August 19
Marketing Pro Focused on Results 20
the
CEO's
Corner
A Message from Kevin Ainsworth
The summer tourism season at HaiCo is always busy
and exciting.
Westcoast’s 2014
lodge
bookings
are strong. As of
June 11th, WCR
has already completed 6 trips with
over 700 anglers
visiting our Haida
Gwaii
lodges.
Fishing conditions
have been excellent and feedback
from our new and
repeat guests is very positive. Our sales staff are
using this momentum to re-book our guests for
2015.
HaiCo has made some sensible changes to our
tourism business for improved financial results in
2014. The Inn at Sandspit, an asset that we leased
from the airport authority, was closed due to financial losses. Our WCR guests will now pass through
the Sandspit airport on their inbound and outbound trips to the Englefield and Hippa Lodges.
We will also be operating a second aircraft out of
Masset for Hippa guests on Sundays only. This will
shorten airport waiting times, providing a higher
level of guest service.
In early 2014, HaiCo sold the Walter’s Cove Lodge
on northwest Vancouver Island to the nearby Kyuquot/Cheklesahht First Nation in a transaction that
is a good outcome for both parties.
Unfortunately, 2014 will be the last season that we
operate our mid-coast lodge out of Whale Channel
near Hartley Bay. The costs of transferring guests
to and from this remote location are prohibitive.
Our guests and staff will certainly miss this beautiful part of Gitga’at territory. The mid-coast lodge
will operate exclusively out of Heiltsuk territory in
Milbanke Sound with a June start-up for 2015.
In March, Haida House won a national aboriginal
tourism award from a field of strong competitors
across Canada. Joelle Rabu and her staff continue
to impress our guests with world class accommodation and dining experiences. Joelle has also increased year over year lodge bookings particularly
iinaasdll | page 2
in the area of 4 and 7 day cultural tourism packages. This is an important benefit to other Haida
Gwaii based tour operators who partner with
Haida House to take our guests to Gwaii Haanas
or for other unique cultural experiences on-island.
Our newly-expanded Haida Wild facility is now
up and running, producing Ocean Wise certified
seafood products for commercial markets and fish
processing services to Haida Gwaii based fishing
lodges, including Westcoast Resorts. Our new
website provides a great description of Haida
Wild’s products and services. (www.haidawild.ca)
At Taan Forest, we will be running our Annual forestry tour on Friday August 15th. The near term
outlook for Taan is good. Relatively strong log and
lumber markets are forecast for this and next year.
We are also looking forward to welcoming some
new HaiCo Board members. These individuals
were chosen for their experience and skill sets
from a large field of strong candidates.
As always, I want everyone at HaiCo to keep safety
as your top priority as you carry out your work and
leisure activities.
Please feel free to contact me if you have any
HaiCo-related questions or concerns.
Have a great summer!
Haaw’a,
Kevin Ainsworth
[email protected]
604.763.1844
Haida Gwaii Youth Assembly 
haico key player in
haida youth assembly
Team HaiCo were recently
front and centre at the Haida
Gwaii Youth Assembly held
for 3 days at the beginning
of May. Kevin Ainsworth,
HaiCo CEO and Dana Bellis,
board member were part
of the team of Haida Gwaii
Youth that competed in
the various time-sensitive
challenges given to the 8
teams of 10 youth. The teams
represented all the interests
that the CHN is involved with.
The overall winning Team
was Team Fisheries followed
closely by Team HaiCo.
The assembly brought youth from all over the islands to
the Skidegate rec centre. They held a mock CHN election
and learned from leaders in a variety of professions. The
assembly offered a safe space for youth to express their
opinions and develop leadership capabilities. Kevin said
“we had some remarkable and very impressive youth on
our team with thoughtful ideas on our challenges and other
issues. We observed young people whose work ethic and
interests bode well for future employment with HaiCo and
other entities. The HaiCo team made a great video that is
posted on the Team HaiCo Facebook page.”
Team HaiCo used the Taan Forest boardroom in Skidegate
to work on their challenges which included proposing a new
Haida Gwaii business with a low environmental impact and
preparing a Facebook page which focussed on alternative
energy ideas for Haida Gwaii.
“One of the assigned tasks to all teams was to prepare and
present a draft resolution to the assembly and our team
did a great job” noted Dana Bellis of Team HaiCo. “As well
I was pleased
to present an
overview of the
Youth Assembly
and Team HaiCo’s
challenges to
We had some remarkable
the recent HaiCo
and very impressive youth
Board meeting.”
on our team with thoughtful
ideas on our challenges and
other issues.
- Kevin Ainsworth
spring 2014 issue 08 page 3
 haida wild expands operations
haida wild expansion
leads to many jobs
It’s been a busy winter and spring for Shawn Baybutt, Manager at Haida Wild seafoods in Masset. “We have almost
completed a major expansion which will basically double the
capacity of the Haida-owned processing plant. Previously
we could not handle more than one product or species at a
time but now we have two processing lines and double the
smoking capacity. Before we were too small to take advantage of new opportunities like being able to process fish
from our sister company Westcoast Resorts”.
the new Haida Wild branding or our products, designed and
printed up new labels and just completed a new product
brochure to increase awareness in the marketplace now that
we have more capacity to meet demand. Salmon is our biggest product followed by halibut
and sablefish but
we also process
ling cod, scallops,
Previously we could not
spot prawns and
handle more than one prodrazor clams. We
uct or species at a time but
are already pronow we have two processing
cessing the first
lines and double the smokcatches for guests
ing capacity.
of Englefield and
Hippa lodges.”
- Shawn Baybutt
Haida Wild is a
federally inspected (US and Canada)
approved
facility and most of its products are Oceanwise Certified,
providing sustainability assurance to customers and the public.
Total project costs were almost $1 million and supported by
a significant grant from the Coast Opportunities Funds, the
Council of the Haida Nation and bank financing. “We added
1500 square feet to the processing room and built a standalone 2000 square foot smoking facility with a brand new
smoker having twice the capacity of the original equipment”
said Shawn in a recent interview. “We were also fortunate
to take advantage of a great opportunity to purchase some
additional value-added processing equipment beyond our
initial plan. When we get it running this fall, we can move
far more rapidly into new markets than we originally thought For more information
possible.”
visit us online at www.haidawild.com
“This expansion also means that our small workforce will
almost double with all of the 12 new jobs going to Haida
people. At peak operations this summer we will have up to
25 workers.”
As with most projects in Haida Gwaii Shawn faced a few big
challenges “weather played a bit of havoc for pouring the
new foundations and the shipping of building materials was
complicated by the much tighter ferry schedules. Other than
that things went very well with the construction phase” said
Shawn.
Construction wasn’t the only thing on Shawn’s mind over
the past year. “We have redone our website, established
spring 2014 issue 08 page 4
Skidegate Community Meeting Positive 
the 12th annual salmon
masters tournament
2014
salmon
masters
For the past 12 years Westcoast
Resorts has opened the
annual fishing season at three of it’s
premier lodges with the Salmon
Masters tournament that attracts
anglers to Englefield, Hippa and
Whale Channel.
The overall Tournament was structured a bit differently for 2014, withthe Grand Championship title being
awarded to the TEAM who has the
most combined weight made up of
each of the two contestant’s largest
2 fish (for a total of 4 fish).
Salmon Masters contributes funding to Prostate Cancer BC and the Pacific Salmon Foundation, with more than $20,000 donated this year. The 128
anglers that sold out the event for 2014 competed for an
overall prize pool of $360,000!
A huge congratulations goes out to Salmon Masters Grand
Champion Team from The Lodge at Hippa Island, Julie
and Eric Lynum! This pair weighed in an impressive combined weight of 122.17lbs which earned them an additional
$54,000 to top off their winnings!
Other top placements this year included Ken Huntingford
with a 39.9lb tyee from Englefield Bay lodge, Len Burwell
from Hippa Island with a 38.66lb tyee and Gord Salomons
with a 30.2lber from The Lodge at Whale Channel.
For more complete tournament results visit
Westcoastresorts.com/events/salmon-masters-tournament
community engagement &
constructive feedback
Attendance was down to 25 people in competition with
the Stanley Cup playoff games but there was lots of constructive feedback at the annual HaiCo community meeting in Skidegate on May 14.
Preliminary annual financial reports and budgets for this
fiscal year were presented and explained (see pages 1114 of this newsletter) by staff and Board chair Dr. Roslyn
Kunin. As well progress on the key performance indicators for HaiCo since 2011 were reviewed. Appreciation to
HaiCo was expressed for consistent and timely reporting
on its results.
“The Board was directed by House of Assembly resolution
to have its legal head office on Haida Gwaii and I am pleased
to say it is now located in Skidegate near the Taan Forest
office” said Dr. Kunin. “The tone of the meeting was quite
positive and we got some recognition of the progress we
are making on the 4 main goals of HaiCo – employment,
sustainable businesses, development of Haida capacity
and making Haida Gwaii a better place to live. All these
activities take time to achieve something you can actually
see in the community. It is happening with projects like the
Haida Wild seafood plant $1 million expansion where all 12
new jobs this year are going to Haida people”.
Herman Collinson was the winner of the draw for two for a
free trip to one of Westcoast Resorts lodges this summer.
Other issues that arose included information on new HaiCo
board appointments. There is a body called the HaiCo
Nominators Committee comprised of various Haida representatives that recommends Directors appointments.
The current vacancies are in the process of being filled by
that committee and announcements are expected shortly.
Anyone interest in serving as a HaiCo director should apply
directly to the CHN.
The fall Community meeting in Old Massett will be held
on Wednesday November 17 from 5 to 9 pm in the Community Hall. Please plan to attend.
spring 2014 issue 08 page 5
 BC Ferries Haida House Vacations
ferries major promoter
for the haida house
In 2010 BC Ferries Vacations
was established to drive increased travel on the ferry
system which sees 70% of
its passengers travelling for
discretionary reasons.
Its
goal is to give this group
another reason to travel
with specially priced vacation packages offering good
value. Haida House at Tllaal
came on board as a partner
in June 2012 for accommodations on Haida Gwaii.
Monica Karlsson is Manager
of Product Development for
BC Ferries and a big promoter of this HaiCo-owned business. “Haida House receives
rave reviews from our guests. We commonly hear that the
Haida House staff have gone completely out of their way to
help plan and book activities for our visitors. This level of
exceptional service provides experiences they would have
otherwise missed.”
Joelle Rabu, Haida House Manager noted “we maintain a
long list of Haida and non-Haida entrepreneurs who offer
everything from cultural tours to world class artisans’ products and experiences for our guests. We provide customers
to local businesses who in turn do a great job in meeting
expectations for that unique Haida Gwaii experience.”
Monica noted “the most appealing aspect of Haida House
is the cultural experience that embraces the visitor. Besides
the beauty of the location and the restful stay it provides a
unique cultural component. The local team exudes a wel-
coming personality, personal service and are open to sharing
with our guests their rich culture, life and Haida Gwaii as
their home. This helps build a connection for the visitors
between themselves, the land and the culture”.
Like many new
business
Haida
House does have
challenges
“the
biggest one has
We commonly hear that the
been the lack of
Haida House staff has gone
overnight
availcompletely out of their way
ability
between
to help plan and book activiJune and August.
ties for our visitors.
Haida House gets
such positive re- Monica Karlsson
views it is no wonder this is such a
popular location
on Haida Gwaii”
said Monica.
Visit Haida House online
www.haidahouse.com
 Winner of the 2014 National
Aboriginal Tourism Award
 Winner of the 2014 Trip Advisor
Travelers’ Choice Award
 Chosen ‘One of the Best in the
Country’ by the 2014 “Where
to Eat in Canada” guide
 Winner of the 2013 Aboriginal
Tourism BC Award for
Outstanding Accommodation
spring 2014 issue 08 page 6
COO Keeps Operations Moving 
coo kept busy with
haico challenges
Bob Brash, HaiCo’s Chief
Operating Officer looks
after the various HaiCo
businesses on a day to day
basis along with his operations managers. “Every day
there is something new and
interesting to deal with in
Taan, Westcoast, Haida Wild
or Haida House, it keeps me
hopping all the time and I
like the challenge” remarked
Bob in a recent interview.
With more than 300 workers
and employees during peak
operating in the spring and
summer the COO is responsible for not only their health and safety but keeping on top
of many activities including ensuring both short and long
term financial viability. “I work closely with the CFO and
CEO as well as participating in Board meetings and dealing
with HaiCo business matters. We are all pretty busy with a
rather lean senior management team for a $50 million business.”
While Bob’s background is primarily in forestry with a diploma from Selkirk College he also holds an MBA from Queen’s
University and his professional forestry designation – all
achieved while he was on the job in the forest sector.
Bob spent most of his life in rural BC after being born in
Oliver and moved with his family to various postings in the
BC Forest Service where his dad worked as a Ranger. “I have
driven almost every road in BC during my travels except the
Stewart-Cassiar Highway” said Bob. “I spent 16 years with
the Forest Service and served as District Manager for the
last 6 years in Haida Gwaii, Dawson Creek, Chilliwack and
acting stint in Fort St. John. After moving to Chilliwack for a
year from Haida Gwaii, Dave Husby phoned me one day and
offered me the
job of running his
forestry business.
After mulling over
that decision, I
took the job and
We are always looking for
stayed there for
new and skilled people
13 years. In 2010,
to build HaiCo and create
I was one of the
wealth for the Haida people.
first
employees
for Taan as I saw
- Bob Brash
some
exciting
opportunities in a
brand new company. Over the
previous years, I
had many a debate and discussion with the Nation and had
gained tremendous respect for what they and their leadership were trying to accomplish. I remain honoured to be a
part of it.”
Bob sees the many big challenges that HaiCo faces. “As a
start-up company we are short of a lot of things-enough time
to deal with all the issues, capacity to assess new opportunities and capital to implement expansion and new businesses.
We are always looking for new and skilled people to build
HaiCo and create wealth for the Haida people. There are opportunities out there. The challenge is putting all the pieces
into place and minimizing risk to the Nation.”
Bob spends a lot of his time in Haida Gwaii where operations
are centered and currently lives in rural Langley with his wife
of 15 years, Natasha. They have five children ranging in age
from 19 to 29. His wife also sells horses for a living and is an
insurance broker for disability coverage primarily targeted
towards small independent contractors.
spring 2014 issue 08 page 7
 Englefield a Customer Favorite
long-time guest satisfied with
westcoast experience
Dick Kritsky lives in the
Napa Valley of northern
California and has been
coming to Haida Gwaii for
25 years for sports fishing
and has enjoyed Englefield
Lodge for more than a
decade. This year the firm
he is retired from recently
is again bringing 36 of their
customers
and
vendors
to Englefield. As one of
Westcoast’s most dedicated
and biggest customers Dick
is more than a VIP for this
HaiCo-owned business.
I am hoping this will continue for many years” remarked Dick.
“We have seen a few changes under Haida ownership,
tighter management on costs but we still see many improvements like new reels, new motors every year and the same
excellent service
and people at the
Lodge. It’s also
been fabulous for
me with a catch
of my prized 49
It’s also been fabulous for me
pound spring. It’s
with a catch of my prized 49
all good.”
pound spring. It’s all good.
- Dick Kritsky
“I started with Oak Bay at
Langara Island, then moved
to Naden Harbour with Queen Charlotte Lodge and we
tried Peregrine as well. I met WCRs Sales Manager, Brian
Alexander at a San Mateo sports show many years ago and
he invited me to try out Englefield. My customers quickly
told me – This is it!!– and we have been returning every
year since. We love the place. The closeness of the fishing
grounds, the lodge, the people and the experience have all
been exceptional. Brian is now a good friend and makes
sure everything works for us and I couldn’t organise such a
big group without Lorna Landry’s excellent help” said Dick in
a recent interview.
Dick spent 52 years in the grocery industry both at the retail
and wholesale level. “When I retired my company gave me a
computer and asked me to take on the task of organizing the
annual fishing trip for our customers. Each year the trip costs
more than $200,000 for the flights and fishing experience.
spring 2014 issue 08 page 8
New Forest Tenure on Haida Gwaii 
This new license, only one of 11 granted in BC so far, is areabased meaning that Taan has increased stewardship responsibilities on a fixed geographic area, protecting traditional
uses. Bob Brash President of Taan Forest commented “this
is a very valuable
long term area
based tenure of
up to 99 years and
replaceable
evThis new tenure will assist
ery 10 years. We
our Nation in managing foralso get manageestry differently on Haida
ment control of
Gwaii and will provide new
non-timber forest
opportunities for the Haida
resources such as
Nation.
mushrooms, salal
and
traditional
- Trevor Russ
foods. Most importantly, it offers
long term stability
to allow us to better manage for long term stewardship that meets the expectations of the Haida Nation. “
Jeff Mosher, Planning Manager for Taan Forest, noted “the
heavy lifting in identifying and securing the tenure was done
In late March CHN and HaiCo leaders met with the Minis- in the negotiations concluded in 2009 with the Province and
ters of Forests and Aboriginal Relations in Victoria to sign the Nation.
a major agreement under the historic 2009 Kunst’aa Guu We are now working with BC to submit the formal tenure
–Kunst’aayah” Reconciliation Protocol. As part of the agree- application by the end of 2014.
ment Taan Forest has been invited to apply for a First Nations Woodland Licence (FNWL) covering parts of Graham This new license will complement our management on Tree
and Moresby Island and having an annual harvest of 134,210 Farm Licence 60 which Taan purchased from WFP several
cubic metres of which 120,000 cubic metres is allocated to years ago. It also fits in very well with our Forest Stewardship
the Haida. The area of the new licence is about 60,000 ha of Certification and gives Taan an annual harvest up to 460,000
cubic metres”.
which half are for timber production.
haida nation secure new
local forest tenure
Trevor Russ, VP of the CHN commented “this new tenure will Visit Taan Forest online
assist our Nation in managing forestry differently on Haida
www.taanforest.com
Gwaii and will provide new opportunities for the Haida Nation”.
spring 2014 issue 08 page 9
 Five Star Experience at Haida House
haida house a
5-star experience
Haida House continues to
attract recognition from the
tourism sector as a five star
experience for visitors. Dana
Schoahs, a long time marketing specialist with Aboriginal
Tourism BC, helped with the
original marketing plan for
Haida House and now promotes it worldwide.
“Haida Gwaii is on a lot of
bucket lists for sophisticated
travellers
and
Haida
House offers a high quality
experience much needed
on the islands. In July we
are having a VIP tour for the
German tourist sector that
will bring further world-wide recognition of the excellent
offerings at Haida House including the touring activities,
the fine cuisine and the overall experience” noted Dana in a
recent interview.
The big challenges for Haida House are capacity and financial
viability from a seasonal operation. After three years of
operations the property is essentially sold out in the peak
July and August summer period and the shoulder season is
also improving significantly. “Capacity and upgrading the
property are key issues that need attention to improve the
long term business and cultural prospects for Haida House.
The operation has a very positive rating from its customers
and the sector” said Dana. “If those issues can be addressed
there appears to be a strong market for the Haida House
experience, especially the showcasing of Haida culture and
art”.
HaiCo is currently undertaking a study and financial analysis
of several options to address opportunities and future
investments in this business.
Haida Gwaii is on a lot of
bucket lists for sophisticated travellers and Haida
House offers a high quality
experience much needed on
the islands.
- Dana Schoahs
spring 2014 issue 08 page 10
MAY 2014
PROGRESS
REPORT
HaiCo’s Long Term Goals & Success Indicators
HaiCo’s Five Year Strategic Plan, approved in October 2011 by the House of Assembly, has four well defined long term
goals and an analysis of where we were in 2011 and where we need to be in 2016. HaiCo will report each year on goals
progress and success indicators and the half year report for the 2013-14 year ending March 31, 2014 as follows:
GOAL 1
HaiCo will generate revenue and provide meaningful employment and career opportunities for Haida People in the management
and operations of HaiCo and subsidiary businesses.
 Sales and revenue are forecast to be $51 million compared to $37 million in 2013 and $22 million in 2012. Sales revenues for 2014-15
are expected to increase by 35% $69 million.
 Forecast to reach consolidated net income in 2013/14 of $2.0 million from operations vs $569,000 from 2012 operations. The budget
for next year is net income over $4 million.
 Employed directly more than 346 people in 2013/14 as compared to 298 people in 2012/13.
 By the end of the sports fishing season we expect similar employment levels with the decrease from the closure of Walters Cove on
Vancouver Island being offset by increased employment at Haida Wild and at Taan Forest.
 The percent of employment of Haida people within our businesses is expected to increase from 22% to over 30%. Similar increases
are expected with our contractors.
GOAL 2
HaiCo will provide responsible management practices that always consider the land, waters, life forms and the culture in all enterprises.
 Significant environmental compliance issues with any regulatory agencies.
 Taan Forest planted more than 220,300 trees in 2012, 368,000 trees in 2013 and a plan of 195,000 trees in 2014. Our operating experience indicates that spruce and hemlock tend to be naturally regenerating, so the planting focus is on western red cedar.
 Haida Tourism established a purchasing program for Haida artisan products for its retail operations. In the coming season, Haida
artisan products will have an increased presence at all of HaiCo’s retail operations.
 Haida Wild obtained OceanWise certification for its products.
 Taan Forest has been successfully audited for the 2nd time for Forest Stewardship Council (FSC®) certification making it the largest
forest enterprise in British Columbia with this internationally recognized forest stewardship gold standard.
 Haida Tourism is also in the process of obtaining “Green Tourism” certification which will complete the goal of obtaining independent
certification for all of Haico’s businesses.
GOAL 3
HaiCo will develop Haida management and operational capacity to ensure well managed, profitable and integrated businesses.
 Appointed a junior Board member to represent Haida youth.
 Added two new Haida Board Members to the Haico Board.
 Established a Scholarship program for eligible Haida and Haida Gwaii youth.
 Decision made to require all Taan Forest Contractors to be “Safe Certified” by mid 2014.
 Mentored many new Haida employees for succession.
 Implementation of Human Resources strategic plan 2013 and completed new Employee Handbook.
 Haida House participated in the 2013 Outdoor Travel and Adventure Show and was awarded the 2013 Aboriginal Tourism BC Award
for Outstanding Accommodation.
 Westcoast involved in promotion at many trade shows.
 BC Aboriginal Business Awards - Community Owned Business of the Year December 2013
GOAL 4
HaiCo will focus on enterprises that are needed to produce a thriving, sustainable community that enhance the lives of people
living on Haida Gwaii.
 Developed electrical energy business proposal to BC Hydro to utilize Taan’s and Haida Gwaii waste wood from logging and manufacturing.
 Taan Forest provided a long term log supply agreement to Haida Gwaii Forest Products Corporation enabling it to start sawmill operations in Port Clements.
 Provided contributions to salmon enhancement, conservation, community events and Rediscovery programs.
 In the past 12 months HaiCo and its subsidiaries in the past year spent locally on Haida Gwaii over $20 million for wages, contractor
services, goods and merchandise supporting the local economy.
 Haida House bookings for the 2014 season are near capacity and the new conference facility bookings are significantly ahead of last
year.
 A joint venture utility pole manufacturing facility has been establish with Skidegate Enterprises.
 Haida Wild has completed an expansion to double its processing capability and is moving towards year round operations.
 Taan Forest will be establishing a Tonewood manufacturing facility on
HAIDA ENTERPRISE CORPORATION
Haida Gwaii during the 2014/15 fiscal year.
 Stabilized operations at Westcoast Resorts from original bankruptcy
1.250.559.2337
and in process of completing business plans to expand the opportunities
#1 Commercial Centre
available on Haida Gwaii.
 Continued expansion of custom cutting and specialty lumber programs
PO Box 1384 Skidegate, V0T 1S0
to develop customer base and brand recognition. This will support busiWWW.HAICO.CA
ness plans and financing options for development of future ventures on
Haida Gwaii relating to manufacturing and value-added wood products.
HAIDA ENTERPRISE CORPORATION HAICO.CA
iinaasdll | page 11
HAICO PROGRESS REPORT
AS OF MAY 2014
YEAR 0 [2011]
PROGRESS
YEAR 5 [2016]
MANAGING BOARD
75%
LIMITED BOARD FUNCTIONING
80%
START-UP BUSINESSES
60%
LIMITED MANAGEMENT CAPACITY
NO JOINT VENTURE BUSINESSES
BOARD COMMITTEES IN PLACE AND
ACTIVE
70%
TRANSITION OF LEGACY BUSINESSES
70%
GOVERNING BOARD, EFFECTIVE
FRAMEWORK AND POLICIES
WELL-FUNCTIONING BUSINESSES
ESTABLISHED EFFECTIVE AND
PROFITABLE BUSINESSES
FULL MANAGEMENT CAPACITY
MIX OF WHOLLY-OWNED AND EFFECTIVE
JVS
50%
BUSINESSES NOT MEETING COMMUNITY
NEEDS
60%
BUSINESSES ENHANCE HAIDA GWAII LIFE
AND LIVING
LACK OF CAPITAL
60%
ADEQUATE CAPITAL
LIMITED CONTRACT OPPORTUNITIES
CREATING NEW CONTRACTORS AND
HAIDA ENTREPRENEURS
50%
HAIDA PEOPLE APPREHENSIVE
60%
FULL CONFIDENCE OF HAIDA PEOPLE
BOARD-CHN RELATIONS DEVELOPING
60%
ACCOUNTABILITIES/RESPONSIBILITIES/
INDEPENDENCE
LIMITED JOB AND CAREER OPPORTUNITIES
HAICO.CA HAIDA ENTERPRISE CORPORATION
iinaasdll | page 12
65%
INCREASE IN CAREER OPPORTUNITIESENTREPRENEURIAL
YEAR 0 [2011]
PROGRESS
YEAR 5 [2016]
LIMITED BUSINESS/CULTURE INTEGRATION
60%
BUSINESSES REFLECT AND PROMOTE
HAIDA CULTURE
LIMITED CONTROL OF LOCAL BUSINESSES
60%
EXPANSION INTO MULTI-BUSINESS
SECTORS
NO INTEGRATION BETWEEN BUSINESSES
75%
LIMITED BUSINESS CONTROL OF HAIDA
GWAII TENURES
60%
CENTRAL ACCOUNTING, FULL
INTEGRATION OF BUSINESSES,
ACHIEVING SYNERGIES
EXTENSIVE CONTROL/OWNERSHIP OF
LOCAL RESOURCE TENURES
LIMITED CAPACITY BUILDING/
PARTNERSHIPS
50%
ACTIVE PARTNERSHIPS AND PROGRAMS
FOR CAPACITY BUILDING
NO SUCCESSION PLANNING
50%
SUCCESSION PLANNING AND
MENTORSHIP AT ALL LEVELS
LIMITED COMMUNICATION WITH HAIDA
PEOPLE
60%
STRATEGIC AND EFFECTIVE
COMMUNICATION WITH ALL
LIMITED HUMAN RESOURCES
DEVELOPMENT
50%
STRATEGIC AND EFFECTIVE HUMAN
RESOURCE DEVELOPMENT PROGRAMS
NO PROFITS FOR BUSINESS GROWTH &
DISTRIBUTION TO TREASURY
50%
GENERATING SIGNIFICANT PROFITS FOR
BUSINESS AND TREASURY
LIMITED PRODUCT PROCESSING
NO MARKET/SECTOR RECOGNITION
LIMITED INDEPENDENT RESULT
VERIFICATION
OPTIMUM MARGIN ADDED TO PRODUCTS
AND SERVICES
40%
WIDE RECOGNITION/RESPECT FOR
SUCCESSFUL BUSINESSES
50%
60%
THIRD PARTY CERTIFICATION OF ALL
BUSINESSES/PROCESSES
HAICO STRATEGY REPORT MAY 2014
iinaasdll | page 13
FINANCIAL RESULTS
HAIDA ENTERPRISE CORPORATION
YEAR ENDING MARCH 31 2014
2014-15 BUDGET
YEAR ENDED DEC 31
2013-14
1
2012
2011
REVENUES [000’S]
FORESTRY RELATED
50,825
34,622
22,478
15,955
TOURISM
14,891
14,488
13,692
5,299
1,345
599
256
-
FISH PROCESSING & SALES
OTHER
1,510
1,020
1,090
944
$ 68,571
$ 50,729
$ 37,516
$ 22,198
COST OF SALES
CONTRACT SERVICES
33,830
23,184
14,636
12,951
TRANSPORTATION
7,774
6,088
6,004
1,053
TOURISM OPERATIONS
1,441
1,328
1,808
1,055
WAGES & BENEFITS
5,996
5,416
5,449
932
FOOD AND BEVERAGE
1,027
1,114
799
692
MERCHANDISE
527
588
480
782
OPERATING SUPPLIES
2,255
1,373
1,318
765
SILVICULTURE AND REFORESTATION
1,339
922
800
607
OTHER DIRECT COSTS
GROSS MARGIN
ADMINISTRATION AND OTHER
3,609
1,719
543
125
$57,797
$ 41,732
$ 31,837
$ 18,962
10,775
8,997
5,679
3,236
6,345
2
5,110
1,976
$ 1,975
$569
$1,260
7,022
NET INCOME
$ 4,430
1
Preliminary
$635k write-down discontinued operations
2
HAICO.CA HAIDA ENTERPRISE CORPORATION
iinaasdll | page 14
haico directory | spring 2014
haico Board of Directors
ROSLYN KUNIN, CHAIR
KEVIN AINSWORTH
Lonnie Young
DANA BELLIS
TASHA SAMUELS
Paul Wates
HAICO Offices
HaiCo Corporate Office | Skidegate
T: Tba E: [email protected]
W: www.haico.ca
Taan Forest | Skidegate
T: 250.559.2337 E: [email protected]
W: www.taanforest.com
Westcoast Resorts | Richmond
TF: 1.800.810.8933 E: [email protected]
W: www.westcoastresorts.com
Haida Wild Seafoods | Masset
T: 250.626.3848 E: [email protected]
W: www.haidawild.com
Haida House at Tllaal | Tlell
TF: 1.855.557.4600 E: [email protected]
W: www.haidahouse.com
senior staff
Kevin Ainsworth
HaiCo CEO
C: 604.763.1844
E: [email protected]
Richard Jones
Taan Contract Supervisor
C: 778.260.0037
E: [email protected]
Bob Brash
HaiCo COO
O: 604.278.3130 x 223
E: [email protected]
Brian Arnold
Taan Forest Log Sales
C: 604.778.6521
E: [email protected]
Steve Blacklock
HaiCo CFO
O: 604.278.3130 x 203
E: [email protected]
Morey Maslak
WCR Operations Manager
O: 604.278.3130 x 234
E: [email protected]
Perry Schmunk
HaiCo Marketing Director
C: 778.835.0533
E: [email protected]
Nash Alani
HaiCo Financial and Business Applications Manager
C: 604.347.5596
E: [email protected]
Berni Zimmerman
Taan Acting General Manager
O: 250.559.2337
E: [email protected]
Jeff Mosher
Taan Planning Manager
O: 250.203.0199
E: [email protected]
HaiCo People are
on the move
The following changes have recently
taken place within the HaiCo family:
westcoast resorts
 Jaclyn Allison is the new Assistant
Manager at Englefield Lodge
 Dave Driever is the new Assistant
Manager at Whale/Milbanke Lodge
taan forest
 Gary Russ Jr. is the new Harvesting Supervisor
 Ruby Saunders is the new
Operations Forester
haida house
 Tasha Samuels is the new Assistant to the Manager
 Peter Bowen is the new Chef
 Marjorie Fregin is new Sous chef
Brian Alexander
WCR Sales Manager
O: 604.278.3130 x 227
E: [email protected]
Shawn Baybutt
Haida Wild Operations Manager
O: 250.626.3848
E: [email protected]
Leslie Brown
HaiCo Skills Development Coordinator
C: 250.626.7370
E: [email protected]
Haida enterprise corporation
1.250.559.2337
#1 Commercial Centre
PO Box 1384 Skidegate, V0T 1S0 www.HaiCo.ca
iinaasdll | page 15
 Logs find Viable Market in China
Customer Relationships Key
to Market Taan’s Logs
Log exports overseas can
be a sensitive issue in some
quarters because of lost
jobs in the sawmilling sector.
Many loggers also support
sawmill jobs remaining in BC
but want the work that logging creates. There are no
easy answers when it comes
to log exports.
Things are more complicated
when dealing in remote areas like Haida Gwaii where
forestry jobs are key in the
economy. The harsh reality is
the higher costs of harvesting
and barging logs to manufacturing facilities results in 2nd
growth being uneconomic to harvest, even wiping out the
chance for logging jobs.
While Taan remains committed to finding more jobs in
manufacturing on Haida Gwaii, a sawmill to manufacture
2nd growth remains non-viable. Niche opportunities such as
value-added manufacturing will remain the short term focus.
In the meantime, log exports to predominantly Asian markets provides the ability, at least for the interim, to create
local harvesting and forestry jobs and build local crews and
infrastructure.
Graeme Lusk is with Trans Pacific Trading Ltd., a private family
owned company that purchases a significant amount of Taan
Forest’s logs that are exported to China. “We have Chinese
customers and shipping arrangements for logs. This year we
have already purchased more than 70,000 cubic metres and
paid Taan almost US$9 million. We buy lower quality logs
from Taan Forest’s like second growth Sitka spruce, hemlock
and pine. We ship out of Prince Rupert to Taichang port
about 1 hour north of Shanghai. Taichang is the only Chinese port that has
a good local sawmill market and
accepts logs with
bark on them.
So far this year
A solid and steady customer
we have bought
is key in that market. An
7 barge loads of
average shipload of logs will
logs from Taan. “
be worth $3 to $4 million.
Selling logs overseas is a complex
- Graeme Lusk
and risky business. For example
pine cannot be
shipped into China between April
and October due to pest concerns. “A solid and steady customer is key in that market. An average shipload of logs will
be worth $3 to $4 million. We pay Taan when the logs are
delivered to Prince Rupert and we get paid via commercial
Letters of Credit when the ship gets loaded so that reduces
risk for Taan. Our customer might sell that load of logs right
off the docks to as many as 20 local sawmills. There are over
500 mills close to Taichang and most are mom and pop operations where logs are still moved by hand with peaveys.”
said Graeme in a recent interview.
“China has been a volatile market for logs. Right now it’s
pretty soft. In fact we heard recently of a couple of shiploads
of BC logs were left stranded when the customer disappeared and wouldn’t pay for them. Brian Arnold from Taan is
our main business contact. He is as steady as they come and
is always looking for the best prices. He also understands
how tough the log market can be. Our relationship with Taan
is pretty solid and business-like and it works for both of us
for the time being”.
Visit Taan Forest online
www.taanforest.com
spring 2014 issue 08 page 16
haida house 2014 summer menu
Haida House at Tllaal ~ Table d’hôte Menu
Choice of Beginnings
Cream of ‘Exotic Mushroom’ Soup
Or
Local Micro-Greens w/ strawberries, sliced asparagus and a Raspberry Vinaigrette &
candied pistachios
Appetizer
Bang Bang Thai Prawns in a Spicy Sweet Chili Sauce
Choice of Mains
Oven baked Spring Salmon topped w/crab & sautéed K’aaw served w/ Wild Rice
Or
Miso-Glazed Sablefish w/ Shiitake Mushrooms
Or
Half Cornish Game Hen w/a sour cherry sauce
Or
Charbroiled 8oz New York Steak w/ Gorgonzola Chive Butter and Roasted Rosemary Yukon Gold Potatoes
all main courses served with fresh vegetables of the day
Choice of Sweet Endings
Dark & White Belgian Chocolate Truffle Pie
Or
Italian Style Ice Cream cake speckled with dried cranberries, apricots & grated chocolate
Or
Seared Pineapple w/ Orange glaze served on Vanilla Ice-Cream
$35 for 3-Course Choose a Beginning, a Main and a Dessert
$45 for 4- Course Choose a Beginning, an Appetizer, a Main and a Dessert
Bon Apétit from Chef Peter Bowen & Sous-Chef Marjorie Fregin
iinaasdll | page 17
 Taan’s Cedar Lumber Marketing
the products we need for our customers throughout North
America. We are always interested in expanding our business
with Taan. We have been looking at the smaller cedar logs
from second growth and the pole stands that can produce
a nice looking
Mike
DeMarni
is
the lumber
product
Cedar Sales Manager for that we can easily
Lignum Forest Products, sell” said Mike.
a significant Taan Forest
We see our relationship with
lumber customer. Mike has
Taan as open and transparent
worked in the forest sector
with both companies recogfor almost a quarter century
nizing that each other must
and with Taan for the past
be profitable and work tothree years.
gether to help build success.
“We purchase the medium
grades of cedar products
- Mike DeMarni
that Taan custom cuts from its
cedar logs. It’s a big business
relationship involving 4 to 5
million board feet and up to
$5 million in sales annually.
We buy everything from
20”x20” timbers to 4”x6”
merch products and smaller that go directly to the customer
along with many other sizes of this specialty product”.
Lignum also has a whitewood sales division that markets SPF
grades on a wholesale and vendor supply model basis.
“We see our relationship with Taan as open and transparent
with both companies recognizing that each other must be
profitable and work together to help build success. We bring
reliable customers and sales opportunities to Taan. We keep
the Taan name and wrap on all of its products and market
this Haida brand in the marketplace. The brand is getting
to be very well known and customers recognize the product
is high quality and comes from sustainable sources. With its
FSC branding there are rarely any issues with this product”
remarked Mike in a recent interview.
“We work very closely with Mike Friesen who manages Taan’s
custom cutting program. Mike runs a tight ship and sells us
results positive in
taan cedar business
spring 2014 issue 08 page 18
Board Governance Training 
board training focus on
HaiCo Governance
Last month HaiCo Directors
and senior staff spent
a couple of half days at
Haida House with Elizabeth
Watson whose company
and legal firm specializes
in corporate governance
and Directors training and
development.
“Governance is a big topic
and includes everything
from what happens when
the CEO leaves to how the
Board of Directors relates to
company shareholders and
investment decision-making.
Elizabeth did a good job in
helping the HaiCo board
identify some of its strengths and areas for improvement
to assist in increasing our board’s effectiveness” said Dana
Bellis, one of HaiCo’s directors.
“HaiCo is now a $50 million business and it is critical the
Board has the correct scale and scope of information from
staff so that risks are managed and decisions are fact based.
In addition Elizabeth helped the Board further explore the
various roles and relationships to focus our attention on. In
looking forward, the HaiCo board will increase collaboration
with communities and other business on Haida Gwaii.
Overall, it was a positive session and assisted in forward
planning by the Board.”
ta a n f o r e s t r y t o u r
join taan on august 15th 2014
Taan Forest will again host a public tour
of its operations on Friday August 15
leaving both Skidegate and Old Massett at 9 am and return by about 4 pm.
You will see active operations and gain
an understanding of our sustainable forest management
,environmental protection, safety and cultural programs.
You will see on the ground the changes made since the
Haida took control of the operations. It’s also a chance
to have some fun and learning about the environment.
Lunch is included. Children 12 and older welcome. Wear
closed toe footwear and casual clothes but no shorts.
Lunch and transportation included.
Register by email: [email protected]
For more information visit www.taanforest.com
spring 2014 issue 08 page 19
 Marketing Pro Focused on Results
new haico marketing director
a Real Promotion Pro
Perry Schmunk has only been
on the job for 4 months but
he’s caught on very quickly
the marketing challenges of
everything from premium
fishing trips to Sitka spruce
tonewood to on-line selling
of seafood products from
Haida Wild. “HaiCo is very
much a consumer oriented
company with a wide range
of products and services.
We sell experiences and
quality fisheries and forest
products and there are many
successful ways to harness
social media for selling” remarked HaiCo’s new Marketing Director, Perry Schmunk in a recent interview.
Perry came to HaiCo with an exceptional background in tourism marketing at Whistler, Banff and Tofino. Born and raised
in Saskatoon he developed his promotion and marketing
skills after university and taking advantage of social media
in very competitive businesses. “I work closely with West
Coast’s marketing pros Brian Alexander and Shawna McKay
looking at how we can get all of our world class fishing experiences marketed as its those final trip sales that really add to
the bottom line. For the first time we held an 8 hour sale at
Easter. By creating a limited time special or “call to action”
as we like to call it, we were able to create demand and we
sold more than $500,000 worth of lodge trips” said Perry.
He has a good understanding of the seasonal tourism and
lodge business having worked to market the Long Beach
Lodge in Tofino and was Chair of the newly formed “Destina-
tion Marketing Organization” Tourism Tofino.
“Haida House under Joelle Rabu and her team have really
created something very special for Haida Gwaii. Our big
problem is the almost complete sellout of prime times at this
unique operation
and how we are
going to continue
to build a brand
and
experience
We sell experiences and
that is on many
quality fisheries and forest
people’s bucket
products and there are many
list”.
successful ways to harness
“We have been
social media for selling.
busy
getting
Haida Wild’s new
- Perry Schmunk
website in place
and working to
develop
on-line
marketing of its
products and at the new Masset Airport. There’s lots to do to
get HaiCo products and branding in front of customers who
ultimately pay our bills and build the company” concluded
Perry.
spring 2014 issue 08 page 20