annual report - Beef Farmers of Ontario
Transcription
annual report - Beef Farmers of Ontario
2013 ANNUAL REPORT Ontario Beef Business The Engine of Rural Ontario Contents Message from the President ..........................................................................................................................1 2012 OCA Board of Directors and OCA Representatives to Other Organizations.................................. 2 OCA Past Presidents .................................................................................................................................... 3 2013 OCA Advisory Council .........................................................................................................................4 Executive Director’s Report..........................................................................................................................5 OCA Staff........................................................................................................................................................6 OCA Reports Government Relations..................................................................................................................................7 Communications..............................................................................................................................8 OCA Programs In Review.............................................................................................................................10 Research & Innovation...............................................................................................................................11 Feeder and Breeder Co-op Programs.......................................................................................................12 Program Administrators...............................................................................................................................13 Market Information and Industry Statistics................................................................................................14 Industry In Review Beef Cattle Research Council....................................................................................................................26 Beef Improvement Opportunities..............................................................................................................27 Canada Beef Inc.........................................................................................................................................28 Canadian Cattlemen’s Association..........................................................................................................29 Canadian Cattle Identification Agency..................................................................................................31 Farm & Food Care Ontario..........................................................................................................................32 Ontario Cattle Feeders’ Association..........................................................................................................33 Ontario Veal Association.............................................................................................................................34 Weigh and Trim Inspection Report...........................................................................................................35 Ontario Beef Cattle Financial Protection Fund Financial Statements....................................................36 OCA Financial Reports Audited Financial Statements....................................................................................................................37 OCA 2013 Preliminary Budget....................................................................................................................51 AGM Sponsors and Tradeshow Exhibitors AGM Sponsor Ads........................................................................................................................................53 AGM Tradeshow Exhibitors..........................................................................................................................59 AGM Agenda...............................................................................................................................................60 AGM Sponsors..............................................................................................................................................61 Message from the President I am pleased to represent 19,000 hard- resources to allow producers to work together to provide potential working Ontario beef farmers whose buyers with a premium, reputable product. The project’s success industry contributes more than $1.8 included the increase from four clubs in Ontario to eleven with billion in value added GDP to the over 18,000 head of cattle marketed through a regional calf club Canadian economy, and provides in 2012, representing 350 producers. The funding for this initiative 26,000 jobs in rural and urban Ontario. through the Agriculture Management Institute (AMI) concluded Our industry in Ontario represents 20% in December, but we are hopeful that we will be able to access of the Canadian fed cattle population a new funding source in the coming year to build on the success and 7.5% of the beef cow population in of this project. economic engine in this province. Last year, in collaboration with the Rural Ontario Institute, OCA announced its commitment to the development and Welcome to the 51st Ontario Cattlemen’s Association (OCA) Annual implementation of a pilot program to recruit and train a group General Meeting, the theme for which is Ontario Beef Business: The of visionary organization leaders who are capable of moving the Engine of Rural Ontario. It was a privilege to serve as your President in Ontario beef industry forward. Having a passion for leadership 2012. I met a lot of great people and worked on a number of important and mentoring opportunities, and for providing our youth with issues that affect your businesses and your families and I look forward resources to excel as leaders of our industry, I was proud to be a to leading our Association into a new year of possibilities. part of this inaugural program that encouraged individuals across As you all know, 2012 presented a number of production challenges for Ontario beef producers. The historic drought which plagued the majority of the province was the most significant challenge of 2012. Our cow-calf producers were faced with a shortage and rising price of hay and our feedlot producers continued to struggle with the the province to seek the opportunity to make a difference within their own communities. I am optimistic that we may see these same individuals actively involved in our provincial Association in the near future and I congratulate our 33 graduates from the 2012 OCA Leadership Development Program. high price of replacement cattle and feed costs. Farmland values in OCA also initiated a brand review process last year to evaluate Ontario also continued to escalate with an increase of 16.3% in the the image and communication goals of the Association with first half of 2012. the objective to focus all messaging and create a consistent On a positive note, we are thankful for the momentum gained from continued collaboration with industry and our alliances with fellow commodity groups in Ontario. image in all communication materials. Through this process it was recommended that OCA consider uniting our two current brands “Ontario Cattlemen’s Association” and “Make it Ontario Beef” under one brand, to connect with the broadest-possible When I became President of OCA we had just rolled out Ontario’s audience. To do this, we will be considering a constitutional Risk Management Insurance Program (RMP). After two years of amendment at this year’s Annual General Meeting to amend tireless work we secured a permanent program for our livestock our organizational name from Ontario Cattlemen’s Association farmers in Ontario and it was a huge win for the Ontario beef industry. to Beef Farmers of Ontario. We believe this proposed name is Unfortunately in March of last year, we were faced with a budget simple, factual, reflective, equitable and approachable, and announcement that capped the program at $100 million for the would align OCA with the names of fellow Ontario commodity 2013 program year. Following that announcement, we continued to groups and provide familiarity and connection to consumers, work with fellow RMP commodity organizations, the Ontario Ministry government and industry. of Agriculture, Food and Rural Affairs (OMAFRA) and the Minister to develop a solution that would maintain the principles of the program and remain within the $100 million spending limit outlined in the 2012 provincial budget. In closing, I have enjoyed my time serving as your President in 2012 and I would like to thank the OCA Board of Directors for their efforts and recognize the contributions made by OCA’s 49 Advisory Councillors. I believe, with continued hard work and I am pleased that the program will continue for Ontario farmers in more involvement from our membership, we can strengthen the 2013 with some modifications to the program design. I would like to Ontario beef industry. As an important economic engine in rural thank Minister McMeekin and his staff at OMAFRA, and the producers Ontario, we need to be prepared to convert our energy into on our RMP Reference Committee for their input and patience as we motion. We need to share our stories and we need to stress the worked to redesign the program. significance of a healthy beef industry on our livelihoods and our In 2010, OCA introduced the Feeder Calf Enhancement Project to assist producers with the development of regional calf clubs. This program has enabled a number of producer groups to hold families. It starts with the people that are willing to commit their time and energy to make a difference. Ontario Cattlemen’s Association Annual Report 2013 Canada. Our business is an important Best wishes in the year ahead. information meetings, develop promotional materials and provide 1 2012 OCA Board of Directors Standing (Left to Right) Rick Hobbs - East; Steve Eby - Feedlot; Joe Hill - Feedlot; Gerald Rollins - Cow-Calf; Paul Sharpe - Feedlot; John Lunn - At-Large; Tim Fugard - At-Large Sitting (Left to Right) Tom Wilson - South; Vice-President, Bob Gordanier - Cow-Calf; President, Dan Darling - Cow-Calf; Matt Bowman - North; Bill Herron - Backgrounder 2012 Representatives to Other Organizations Ontario Cattlemen’s Association Annual Report 2013 2 Agricultural Adaptation Council Bob Gordanier Ontario Agricultural Commodity Council Bob Gordanier Beef Cattle Research Council Matt Bowman and Bill Herron Ontario Beef Cattle Financial Protection Program Tom Wilson, Curtis Royal and Bill Herron Beef Improvement Opportunities Matt Bowman Canada Beef Inc. Paul Sharpe Ontario Corn-Fed Beef Inc. Bob Gordanier Ontario Federation of Agriculture John Lunn Canadian Cattlemen’s Association Dan Darling, Bob Gordanier, Matt Bowman and Tom Wilson Ontario Feeder Finance Committee Steve Eby Canadian Cattle Identification Agency Bob Gordanier Ontario Forage Council Matt Bowman Farm & Food Care Ontario Gerald Rollins Financial Protection Adjudication Board Paul Sharpe, Bill Herron and Curtis Royal Ontario Livestock and Poultry Council Katie Dettman Toronto Stock Yards Land Development Board Paul Sharpe 1963 Bruce Mehlenbacher, Haldimand 1987 Hugh Sharpe, Lennox and Addington 1964 Ross Beattie, Simcoe 1988 Robert Gregson, Elgin 1965 George Morris, Kent 1989 Jim Magee, Oxford 1966 Harvey Ackert, Bruce 1990 David Whittington, Peterborough 1967 - 1968 Walter Beath, Ontario County 1991 Glenn Coultes, Huron 1969 Vern Kaufman, Oxford 1992 Doug Gear, Dufferin 1970 Lawrence Markusse, Lambton 1993 Robert Kerr, Kent 1971 Hugh Grace, Lanark 1994 Ken Summers, Victoria 1972 Tom Jackson, Peel-Halton 1995 Harvey Graham, Durham East 1973 Stewart Brown, Elgin 1996 Dale Pallister, Grey 1974 Grant Burroughes, York 1997 Linda Barker, Haldimand 1975 Clarence Hardy, Middlesex 1998 Bob Dobson, Renfrew 1976 Ronald Oswald, Bruce 1999 Darlene Bowen, Temiskaming 1977 Archie Etherington, Huron 2000 Stan Eby, Bruce 1978 Alex Connell, Wellington 2001 Dick van der Byl, Glengarry 1979 - 1980 Morley Shepherdson, Temiskaming 2002 Mike Buis, Kent 1981 Gus Lask, Ontario County 2003 - 2004 Ron Wooddisse, Wellington 1982 Tony Noorloos, Lambton 2005 - 2007 Ian McKillop, Elgin 1983 Robert Chapple, Kent 2008 - 2009 Gord Hardy, Middlesex 1984 - 1985 Gerhard Schickedanz, York 2010 - 2011 Curtis Royal, Simcoe 1986 Edgar Wideman, Waterloo Ontario Cattlemen’s Association Annual Report 2013 OCA Past Presidents 3 2013 OCA Advisory Council Ontario Cattlemen’s Association Annual Report 2013 4 COUNTY NAME TOWN PHONE EMAIL ALGOMA Ken MacLeod Bruce Mines (705) 736-2236 [email protected] BRANT Brian Cochrane Paris (519) 442-3911 [email protected] BRUCE Scot Legge Chesley (519) 363-2075 [email protected] COCHRANE Jack Mann Cochrane (705) 272-3997 No email DUFFERIN John Stirk East Garafraxa (519) 941-5061 [email protected] DUNDAS Arden Schneckenburger Morrisburg (613) 543-2312 [email protected] DURHAM Stan Found Courtice (905) 436-2528 [email protected] ELGIN Alan Carroll West Lorne (519) 768-2759 [email protected] ESSEX Kris Nelson Cottam (519) 839-5712 [email protected] FRONTENAC Dave Perry Harrowsmith (613) 377-6668 [email protected] GLENGARRY Ian Howes Apple Hill (613) 528-1596 [email protected] GRENVILLE Kim Sytsma Athens (613) 924-9241 [email protected] GREY Don Hargrave Maxwell (519) 922-2654 [email protected] HALDIMAND Brent Everets Fisherville (905) 779-3018 [email protected] HALIBURTON Ross Warburton Minden (705) 286-1939 [email protected] HASTINGS Dale Grant Stirling (613) 395-2079 [email protected] HURON Harvey Hoggart Clinton (519) 482-9157 [email protected] KENORA Roger Griffith Oxdrift (807) 937-6602 [email protected] KENT Frank Byrne Chatham (519) 354-5853 [email protected] LAMBTON Debbie Coke Dresden (519) 683-4569 [email protected] LANARK Don Badour Perth (613) 264-1008 [email protected] LEEDS Blair McDonald Seeley’s Bay (613) 387-3983 [email protected] LENNOX/ADDINGTON Moe Street Yarker (613) 378-2669 [email protected] MANITOULIN Gerry Armstrong Gore Bay (705) 282-3397 [email protected] MIDDLESEX Jamie O’Shea Granton (519) 225-2633 [email protected] MUSK/PS/EAST NIP. Klaus Wand Powassan (705) 724-2314 [email protected] NIAGARA Jason Koudys Port Robinson (226) 820-5290 [email protected] NORFOLK Robert Peacock Simcoe (519) 426-2328 [email protected] NORTHUMBERLAND Glenn Dorland Brighton (613) 397-2160 [email protected] OTTAWA Reg Campbell Ashton (613) 257-7524 [email protected] OXFORD John Kaufman Woodstock (519) 421-2327 [email protected] PEEL/HALTON John Adema Georgetown (905) 873-4747 [email protected] PERTH Murray Brodhagen Brunner (519) 595-4663 [email protected] PETERBOROUGH Garnet Toms Warsaw (705) 652-0092 [email protected] PRESCOTT Geordie MacLaren Vankleek Hill (613) 678-2391 [email protected] PRINCE EDWARD Tina Hiddink Bloomfield (613) 399-3239 [email protected] RAINY RIVER Kim Jo Bliss Emo (807) 482-2863 [email protected] RENFREW Craig McLaughlin Forester’s Falls (613) 646-7820 [email protected] RUSSELL Raymond Lalande Saint-Pascal-Baylon (613) 488-2755 [email protected] SIMCOE Doug Shelswell Hawkestone (705) 325-3502 [email protected] STORMONT Jamie Clark Cornwall (613) 551-6039 [email protected] SUDBURY-WEST NIP. Adrian Verhoeven Massey (705) 865-2480 [email protected] TEMISKAMING Greg Seed New Liskeard (705) 647-9802 [email protected] THUNDER BAY Jason Reid Thunder Bay (807) 935-3224 [email protected] VICTORIA Paul Brown Woodvillle (705) 374-4941 [email protected] WATERLOO Mike Edwards Millbank (519) 698-2327 [email protected] WELLINGTON Rob Unsworth Harriston (519) 291-7840 [email protected] WENTWORTH Ken Mills Puslinch (905) 659-7314 [email protected] YORK Ted Taber Stouffville (905) 852-4278 [email protected] Executive Director’s Report This year the theme for our Annual promise of RMP as a program which was bankable, predictable, General Meeting is “Ontario Beef and affordable within an insurance-like premium based Business: The Engine of Rural Ontario”. framework. In late July, the Ontario Agricultural Sustainability This is a great theme as I believe this Coalition (OASC) group made a presentation to Minister industry is indeed the engine of rural McMeekin which formed the broad basis for the 2013 program. Beef farming is carried out in every county and district in Ontario, and is vitally important to the well-being and growth of families, businesses and communities of Ontario, both rural and urban. The employment and income derived from our industry helps support a broad range of rural infrastructure such as hospitals, schools, and community centres. Beef farms provide jobs in rural communities, from on-farm help to feed supply stores to grocery stores, from farm machinery sales and maintenance to trucking and transportation. As well, beef farming contributes to employment in both packing One of the significant achievements for producers as we worked on program modifications was the establishment of an unprecedented producer-held fund for all premiums. Producer premiums will be the last dollars spent when addressing need and, if they are not needed in good years, they will accumulate so that they can be used when times are really tough. I would like to thank the producers on our RMP Reference Committee for their time, input, and patience as we worked to redesign the program. There were a great many hours of meetings for the second year in a row. I believe that the results will prove it was time well spent. and packaging plants as well as further processors in urban areas. Leadership Development Program And it helps to feed a nation. Your board believes in the value of good leadership and in the Beef farming drives the economy of rural Ontario. The work you do is important, it matters, and it enriches the economy of the province of Ontario, and of Canada. Tough Times I know that 2012 was not an easy year for you. Many areas of our province were hit by record low rainfalls, and in some cases rain arrived too late to salvage crops, but too soon to salvage forage insurance payments. We have begun discussions with the Ministry and Agricorp on changes required to make forage insurance work as effectively as crop insurance does. The adverse weather conditions, combined with hoarding have sent hay prices to all time highs as well. Replacement costs for feedlot operators also hit record levels, and those I talked to who participated in the Risk Management Insurance Program (RMP) were very glad that they made that decision. OCA Staff We had a notable milestone achieved this past year as Dan Ferguson potential of younger producers to move the yardsticks forward for the Ontario beef business. In 2011, OCA committed to the development and implementation of a pilot program to build leadership capacity in rural Ontario, and engaged the Rural Ontario Institute (ROI) to develop and deliver the courses. The program was launched in the spring of 2012, and consisted of three sessions held in Cambridge, Toronto and Peterborough from January to April and our fall session was condensed into three days, held in Thunder Bay, to accommodate an overwhelming interest in the program in northern Ontario. Programming focused on topics such as governance, meeting management, leadership styles, and organization assessment and planning. Upon completion of both programs, I was pleased to recognize the commitment shown by our 33 graduates from the OCA Leadership Development Program in 2012. completed his tenth year as an employee of OCA. Those of you who Ontario Corn-Fed Beef have been lucky enough to be in a room with Dan know all about The Ontario Cattlemen’s Association continues to dedicate him. He is a great person to have working on your behalf. strong financial support to the Ontario Corn-Fed Beef Program, a Ontario’s Risk Management Insurance Program 2012 was the first year to run the Risk Management Insurance Program for beef in Ontario. I have heard nothing but good things about the program from those who participated in it. In the 2012 provincial budget Ministers McMeekin and Duncan were able to preserve the program concept, however the fiscal situation for the province has deteriorated and so for 2013 the Province needed to place an upper limit on all RMP programs of $100 million. program that was established to provide a high-quality, premium branded beef program for the Ontario marketplace. By year end, Ontario Corn-Fed Beef was featured in over 240 retail locations across the province under various Loblaw banners, as well as in more than 120 other retail outlets. Congratulations to Jim Clark for building the Ontario Corn-Fed brand. It is a pleasure working for you. Thank you. Ontario Cattlemen’s Association Annual Report 2013 Ontario. From April through July we worked with our allies in other commodities and with the government, discussing options to achieve the initial 5 OCA Staff DAVE STEWART Executive Director x 233 [email protected] KATIE DETTMAN Policy Advisor x 226 [email protected] Ontario Cattlemen’s Association Annual Report 2013 6 RICHARD HORNE Policy Advisor x 234 [email protected] LEAANNE WUERMLI Communications Manager x 230 [email protected] JAMIE GAMBLE Market Information Coordinator x 235 [email protected] LISA TURNEY Research and Project Coordinator x 224 [email protected] AMBER MCINTYRE Accountant x 222 [email protected] CATHY GOLUBIENKO Executive Assistant x 228 [email protected] DAN FERGUSON Manager of Producer Relations 905-375-8551 [email protected] JACKIE PIERCE Office Manager x 231 [email protected] CHERYL RUSSWURM Provincial Supervisor: Ontario Feeder & Breeder Co-op Programs 519-367-5590 [email protected] CATHY LASBY OCA Contract Employee Ontario Beef Advertising Manager 519-763-8833 [email protected] ANDY MILLAR Check-off Inspector 519-827-5446 [email protected] CHRIS ATTEMA OCA Contract Employee Water Quality Specialist 905-386-0272 [email protected] Government Relations At the outset of 2012, after the Liberal Party of Ontario won its third PC Member of Parliament to update them on the status of consecutive election in the fall of 2011, OCA worked hard to update the federal government’s intentions to cut livestock’s main Premier Dalton McGuinty and the new Minister of Agriculture, Food safety net program, AgriStability, by 60% and to impress and Rural Affairs (OMAFRA), The Honourable Ted McMeekin, on the upon them the urgency for re-shaping the discussions around this important program before the next FPT meeting the beef sector moving forward. While the Minister immediately in September. embraced the opportunity to learn more about our industry and On heard our concerns, we were met with a budget announcement in the spring that imposed constraints around our new Risk Management Insurance Program (RMP). On March 27th, Finance Minister Dwight Duncan delivered an austerity budget for 2012 with the government asking all Ontarians to play their role in helping to bring the provincial budget into balance. Cuts and freezes in government spending would be felt across all sectors. As a result of the province’s fiscal restraints, OCA and our fellow commodities were tasked with redesigning the RMP and putting forward a proposal to the Minister that would be accepted in order to preserve the program. Through numerous discussions September 14th, despite the intensity of our outreach to Minister Ritz, and to Ontario PC MPs through individual MP meetings in Ottawa, in their constituencies, and at caucus assemblies, the federal government announced its changes to the Growing Forward 2 agreement which included the forecasted massive cuts to AgriStability. (There was limited consultation with Ontario farmers.) It was a heartfelt disappointment that Ontario’s 73 PC MPs, which is greater than the sum of all Conservative MPs from British Columbia, Alberta, Saskatchewan, and Manitoba combined, did not stand up for Ontario farmers. between the Ontario Agriculture Sustainability Coalition (OASC) and On September 25th, on the occasion of the Canadian the Minister and his staff, we achieved a workable framework that Cattlemen’s Association’s Annual Fall Picnic on Parliament was approved by the Minister, adhering to the $100 million spending Hill, a number of OCA’s Board Directors met with limit outlined in the 2012 provincial budget. several Ontario PC MPs to continue to keep the lines of We are glad that Minister McMeekin and Minister Duncan committed to continue the RMP as a permanent program in these tough times. During the 9th annual Queen’s Park Barbecue at the end of May, OCA’s Board of Directors were able to express our gratitude in person on behalf of our membership to Premier McGuinty and to Ministers McMeekin and Duncan. We were also grateful for the many MPPs who took the time to meet with us that day and to participate in the barbecue on the front lawn of the legislature. Our interactions and conversations with the MPPs were meaningful and gave us the opportunity to share our message of the importance of business risk management programs and research and innovation for the long term competitiveness for our producers in Ontario. In tandem with our work on RMIP, OCA also continued its collaboration with the MP Working Group established in July of 2011 (MPs Michael communication open around business risk management and safety net programming for Ontario’s beef farmers. At the same time, the membership of the federal government’s Standing Committee on Agriculture was shifted and some of agriculture’s strong voices of support now serve on other Standing Committees. We were able to meet with the new Chair of the Standing Committee on Agriculture, Mr. Merv Tweed from Manitoba, with a promise to continue to build that working relationship on behalf of our membership. OCA continues to create opportunities to inspire our Ontario politicians to stand up for Ontario agriculture with a renewed mandate to support and protect Ontario’s farming industry and ability to sustain local, high quality, safe food for Ontarians. It can’t be said enough: we would ask each of you to meet with all levels of government in your constituency Chong, Ben Lobb, Joe Preston, and Bev Shipley and representatives and reinforce the importance of risk management programs from Ontario’s non-supply managed commodity groups) on the to your operation and to demonstrate that by sharing your preservation of the AgriStability program and to ensure that Ontario story at the various local forums hosted by community farmers receive their fair share of federal agricultural support. stakeholders or by government representatives. By the summer, it became clear to us that the federal government We did finish 2012 on a good note: on December 14th, was promoting massive cuts amounting to $430 million annually to Ontario beef farmers expressed their relief in hearing that the AgriStability program. Details about federal proposals tabled the federal and provincial governments announced during the Federal/Provincial/Territorial (FPT) teleconference in June financial support under the AgriRecovery framework to assist became widely known within two weeks after Minister of Agriculture livestock farmers in Ontario affected by the severe drought and Agri-food Canada, The Honourable Gerry Ritz met with farm conditions in many areas of the province this summer. Once leadership from Ontario and denied that significant cuts were being again, the support of Minister McMeekin and the Ontario contemplated. So, in July, as drought gripped many areas of our government was critical for us as they initiated discussions province causing undue stress and uncertainty for Ontario beef with, and requested aid from, the federal government farmers, OCA President Dan Darling wrote a letter to every Ontario Ontario Cattlemen’s Association Annual Report 2013 issues facing our members and to discuss plans for agriculture and under the AgriRecovery Program. 7 Communications 2012 Highlights Ontario Beef Magazine Ontario Beef was published five times in 2012 (February, May, August, October and December) to approximately 14,000 OCA members, industry partners, MPs and MPPs. It provides members of OCA and other industry stakeholders with a wide range of information, issues updates, market statistics and more. In 2012, staff also undertook the task of updating our circulation database to better reflect our active and current membership data with the goal to ensure all active members of OCA are receiving this publication. If you have had interruptions in receiving this publication please contact the OCA office to verify your complete mailing address. Cattlemen’s Weekly Anyone wishing to receive weekly information on issues affecting the beef industry are encouraged to subscribe to Cattlemen’s Weekly, OCA’s electronic weekly update that has nearly 1,000 subscribers. The weekly newsletter, sent on Friday of each week, provides recipients with a snapshot of timely updates on top news stories, industry issues, upcoming events and deadlines. County associations are also encouraged to send along event details or good news stories to be posted and shared in Cattlemen’s Weekly. Those interested in receiving this weekly update can send their email address to [email protected]. Email addresses are kept strictly confidential. The newsletter can also be viewed from the OCA website under Cattlemen’s Weekly. Reviewing the OCA Brand Ontario Cattlemen’s Association Annual Report 2013 OCA initiated a brand review process in 2012 to evaluate the image and communication goals of the Association with the objective to focus all messaging and create a consistent image in all communication materials moving forward. It was through this process that it was recommended that OCA consider uniting our two current brands “Ontario Cattlemen’s Association” and “Make it Ontario Beef” under one brand, to connect with the broadest-possible audiences. To do this, OCA voting delegates will be considering an organizational name change from Ontario Cattlemen’s Association to Beef Farmers of Ontario at this year’s OCA Annual General Meeting. The intent of the proposed name would align OCA with fellow Ontario commodity groups and provide familiarity and connection to consumers, government and industry. Promoting Ontario Beef It was two years ago, with direction from OCA’s membership, when OCA launched a campaign to raise awareness of Ontario beef’s quality, versatility and availability amongst media and consumers. During the course of 2010, highlights of the benefits and marketing advantages of brands such as the Ontario Corn-Fed Beef program, the easy-sell dynamics of the “buy local” movement, and a targeted approach with media coupled with a new website complete with recipes, helped to spark interest in consumers and developed a new awareness of Ontario beef. The funding for the campaign wrapped up in March of 2011, leaving OCA with the challenge to get a little more creative in building on the Make It Ontario Beef brand. In 2012, the website was updated with a number of new recipes. Eight new recipe cards were developed this past summer each highlighting a unique Ontario beef recipe with a guide on how to choose and prepare popular cuts of beef and also where to source Ontario beef. A number of promotional items are now available including Make It Ontario Beef placemats, napkins, aprons, stickers and children’s temporary tattoos from the OCA office. For the last two years, a full page ad featuring Ontario producer, John Stirk of Orangeville, has been featured in the annual publication Harvest Ontario – a guide to direct consumers to local farmers markets, agritourism locations and farm-gate producers. This magazine guide is published annually in June with over 75,000 copies distributed province wide to tourism centres, farmers markets, events and festivals and Home Hardware stores across Ontario. In late May, once again OCA participated in the Queen’s Park Farmer’s Market hosted by Foodland Ontario on the lawn of Queen’s Park in Toronto. This year OCA served over 500 samples of gazpacho steak salad to MPPs and their staff. 8 In addition to the activities previously mentioned, the OCA Board of Directors also enlisted in a partnership with the Ontario Independent Meat Processors (OIMP) to promote local Ontario beef products. Our partnership has enabled us to share recipes and resources including the opportunity to have Ontario beef featured in their monthly newsletters, social media campaigns, OIMP’s Ultimate Burger Competition and attending the One of a Kind Show in Toronto with two days dedicated to Ontario beef. By combining funds, resources and manpower in this logical partnership we have extended our efforts and reach in the areas of consumer awareness, retailer engagement, and foodservice opportunities in the further promotion of Ontario beef. OCA Sharecost Program The OCA Sharecost Program continues to be a well utilized program administered by OCA. OCA is pleased to report a successful year in 2012 with 40 participating counties receiving a total return to the local level of over $127,000 (a slight increase from 2011) in support of consumer and producer initiatives. Each year, counties put time, effort, money and manpower into various local events and awareness activities in support of the beef industry. In November, final • Junior Beef Heifer Show Exchange Program • OAC Beef Science Club • Profitable Pastures Conference • Quinte Farm Show • Queen’s Park Farmers’ Market • Queen’s Guineas Competition • Royal Agricultural Winter Fair • Youth Forum • World Hereford Conference 5th Annual Cow-Calf Roadshow OCA’s Cow-Calf Committee celebrated its fifth anniversary as host of the annual Cow-Calf Roadshow on September 5-6, 2012. With over 100 eager participants this year the Roadshow was held in Haldimand-Norfolk, and featured stops at Miller Land and Livestock, YU Ranch and the farm of Cory and Heidi Van Groningen. Dr. Rob Tremblay, Ian McKillop and Jennifer Stevenson were the highlights of the morning speaker session presenting on pain management, the Beef Cattle Code of Practice and an evaluation on market risk factors. We thank the sponsors, participants and farm hosts for another successful year. applications were submitted including invoices and record of payment for each activity. In return, OCA provided a cost share of 80% up to a maximum of $2,500 for consumer initiatives and $2,500 for producer initiatives for a total maximum return of $5,000 per county. In 2012, qualifying producer newsletters while consumer activities included fall fair involvement, local beef promotion and community sponsorship. Sponsorship & Events OCA continued its support towards a number of initiatives throughout 2012. Participating in tradeshows provides an excellent avenue to connect with producers to address industry concerns and to meet with consumers to resolve misconceptions on food-safety and beef farming practices. OCA participated in and/or supported the following events/ initiatives in 2012: • Beef Industry Convention • Beef Symposium • Beef Sen$e – 4-H Ontario • Canada’s Outdoor Farm Show • Canadian National Exhibition • Discovery Days – 4-H Ontario • East Central Farm Show • Grey Bruce Farmers Week • Junior Farmers Association of Ontario How to Stay Connected • Receive Ontario Beef Magazine in your mailbox • Receive OCA Cattlemen’s Weekly in your inbox • Follow OCA on Twitter @Ontariobeef • Check-out our Auction Market Communications System • Visit www.cattle.guelph.on.ca • Visit www.makeitontariobeef.ca • No access to a computer? Contact the OCA office • Get involved in your local county association Ontario Cattlemen’s Association Annual Report 2013 activities ranged from bus trips to workshops to 9 OCA Programs In Review Leadership Development Program gathered In collaboration with the Rural Ontario Institute (ROI), OCA committed us documented evidence to show Ontario’s cow-calf to the development and implementation of a pilot program in 2011 to recruit and train a group of visionary organization leaders who are capable of moving the Ontario beef industry forward. The pilot through past programs to enhance the traceability aspect of these calf clubs. This project will give producers that being proactive and working together can result in improved profitability. It will show producers clear steps they can take in order to increase their returns, and program will increase the leadership skills of existing or potential meet the needs of Ontario’s feedlots. organization leaders, and better prepare leaders to move the New clubs worked throughout 2012 to increase offerings of industry forward in times of change or challenge. The program commenced in the spring of 2012, and consisted of three sessions held in Cambridge, Toronto and Peterborough from January to April and our fall session was condensed into three days, held in Thunder Bay, to accommodate an overwhelming interest in northern Ontario. Participants of all ages and from various regions in the province had the opportunity to network with fellow producers and current industry leaders, travel to Queen’s Park and meet with local MPPs and the Ontario Minister of Agriculture, and gain a greater understanding of effective communications, meeting management, organization governance, creating effective policy and procedures, and empowering and motivating others. Upon completion of both sessions in 2012, 33 participants successfully graduated from OCA’s Leadership Development Program. these calves. Overall strong prices have narrowed the price differential, but consignors and buyers continue to support this initiative. Over the past year we have been able to work with over ten different sale groups to make available various advertising options to further their club activity. The use of videos for presale exposure provided another tool for buyers to preview upcoming sale offerings. We continued to expand the use of video auction technology to include northern Ontario. As a result of this initiative, some auction markets have chosen to continue with the use of video auction technology. Over 18,000 calves were marketed through these clubs in 2012, representing 350 cow-calf producers in Ontario. The program in 2012 also assisted the clubs and producers by coordinating pasture tours. Four different tours covering eight different farms in the province explored tools to maximize pasture potential with the format of pasture walks, peer review and professional advice from grazing mentor specialists. Ontario Cattlemen’s Association Annual Report 2013 The funding partnership for this initiative through the Agricultural Institute (AMI) ended in Verified Beef Production 2012 continued to be a challenging year for the Verified Beef Production Program in Ontario. The program has carried out more on-farm audits for producers who viewed Feeder Calf Enhancement Project The Ontario feedlot sector requires approximately 600,000 feeder cattle per year. With the Ontario beef cow herd being less than 321,000, there is a great potential for Ontario cow-calf producers to meet an obvious need. Since 2010, OCA has worked with selected cow-calf producers to develop (and expand existing) calf clubs that will raise similar-type cattle under defined protocols with the intent of placing attractive sized lots of preconditioned Ontario calves into special calf sales. We have been building upon the premise ID information that has been 10 Management December of 2012. VBP registration as an important component of their own marketing program. 2,713 producers have received training under the national on-farm food safety program. 110 operations in Ontario are now registered. VBP continues to provide training and materials for special producer groups to set the foundation for brand evolution strategies. Our hope is that inclusion in the Growing Forward 2 with funding support similar to other provinces would reinvigorate the program and encourage increased uptake in on-farm food safety by Ontario beef producers. Research & Innovation In June, the OCA Research Committee, with funding approved “Liver tissue measures for indirect assessment of feed by the OCA Board of Directors, initiated a three-year OCA Beef efficiency in beef cattle” - Dr. Steve Miller (UoG) toward Ontario based research projects. This allocation is in addition to the annual funding OCA contributes to the Beef Cattle Research Council (BCRC) to fund beef research projects more national in scope. The project will further path find a solution to enable the beef industry to improve feed efficiency. The project brings together and adds value to a number of existing resources such as facilities and databases. Since feed represents the largest single variable cost related to production, the In August, the Committee approved several projects from the first project certainly relates to an important issue. Genomics call for proposals under the OCA Beef Research Program and coupled with biomarkers (liver measures in this study) for two others under the Canadian Agricultural Adaptation Program feed efficiency will certainly facilitate genetic improvement (CAAP). Additionally, the OCA board recently decided to redirect strategies for this historically difficult complex of traits funds to two Ontario projects that have been endorsed by BCRC in (efficiency). anticipation of the next Beef Science Cluster under the next Growing ultimately a more efficient cow-herd. Forward framework set to begin in April of 2013. The downstream benefit of the project is “To determine if standard roughages can be reduced OCA has also been involved in the preliminary development of a new or replaced in beef feedlot rations without effects on and innovative centre dedicated to driving the sector’s research performance, grade or health” interests in Ontario. The Livestock Research Innovation Corporation, - Bob Bechtel (Advanced Ag Testing Inc.) or ‘LRIC’ for short, is anticipated to act as a multi-species research and innovation centre and is designed to provide leadership and direction on livestock and poultry research in Ontario. Stay tuned for more details on this exciting project in the near future. It is hoped that the conclusions reached by this trial will enable the cattle feeding industry to cope with severe drought conditions in any part of the country. The results should also help in areas where corn production for ethanol OCA refined its research priorities in 2012 in anticipation of the next production has reduced the roughage supply. The drought agricultural policy framework (Growing Forward 2), the priorities are of 2012 also put pressure on Canadian and American feed as follows: supplies which will have both short and long term implications • Economic Research and Analysis as it relates to Ontario Beef Production • Environmental Sustainability • Improved Animal Health and Welfare • Marketing Opportunities for Ontario Beef – Product for the North American beef cattle supply. Further industry liquidation will occur in the short term. If more fibre can be directed from the feeding industry to the cow-calf sector then the return to acceptable numbers of cows will be accelerated. Development “Stimulating innate immune reponses to prevent pneumonia • Production Efficiency in beef cattle” - Dr. Jeff Caswell (UoG) • Safe Product 2012 Funded Projects “The impact of genomic selection for feed efficiency on the cow-calf sector, performance parameters and underlying biology” - Dr. Steve Miller (UoG) The primary purpose of this research is to study the ties between genomic selection for feed efficiency and biological parameters associated with feed efficiency, aiming not only to increase our understanding of the factors determining feed efficiency in beef cattle, but also to identify new phenotypes that could be applied in genetic selection for improved feed efficiency. The objectives are to investigate how beef cows differ in performance (size, intake, fertility and calf weaning weight) in relation to their feed efficiency predictions (genomic and based on own and progeny records for feed intake). Biological measures to predict and to monitor biological responses to improvement in feed efficiency will also be developed. The intent of this project is to identify how factors that predispose to bacterial pneumonia (stress and viral infection) reduce expression of antimicrobial peptides in cattle, and to use this knowledge to develop a new intervention to prevent pneumonia by stimulating this innate immune response. Development of a method to stimulate antimicrobial peptide production is expected to reduce the occurrence of pneumonia in beef cattle, reduce the need for preventative use of antibiotics, and improve the welfare of stressed, disease-prone calves. These studies are essential for efficiently identifying the best pathways to target for enhancing innate immunity in calves, to prevent the stress-associated reductions in innate defences. The goal is to stimulate innate immunity in disease-susceptible feedlot cattle, which would prevent Ontario Cattlemen’s Association Annual Report 2013 Research Program which allocated $90,000/year to be directed disease and reduce the current reliance on preventative antibiotic use in beef production. 11 Feeder & Breeder Co-op Programs Ontario Feeder Cattle Loan Guarantee Program Ontario Beef Breeder Co-op Program 2012 was a year of fluctuating weather and markets that The Ontario Beef Breeder Loan Co-op Program was established in affected the program’s activity. Drought conditions, limited 2002 and currently eight co-ops continue to operate throughout pasture, reduced feed supplies and eight dollar per bushel certain areas of Ontario. The bright spot in 2012 was the expansion corn forced many members to reassess their cattle feeding of the areas that a couple of co-ops have elected to cover. The strategies and marketing. Temiskaming/Cochrane Breeder Co-op decided to cover Manitoulin The number of head purchased in the Ontario Feeder Cattle Loan Guarantee Program was down to 86,985 because of feeding dynamics and the higher cost of replacement cattle. Any member operating at the maximum loan limit of $250,000 would have bought about 25 head of cattle less than a year ago. Average value per head on the program is up $218 from two years ago. Co-ops have discussed increasing the loan limit, but this would require a change in the Order in Council by the provincial government. Island. This was a win-win situation for all involved. The Co-op benefited from increased activity and producers on Manitoulin Island obtained financing without having to worry about having adequate membership to maintain a viable co-op of their own. Also, the Southwest Beef Breeders Co-op opted to take on producers in the Norwich area. Ontario Beef Breeder Co-op Statistics YEAR - as per June 30th 2012 2011 2010 2009 2008 2007 Higher overhead costs for insurance and auditing fees Number of members 279 263 260 273 263 253 coupled with lower activity, continues to challenge the Number of active members 238 232 231 222 223 207 boards of a few co-ops. We continue to solicit the Ontario Total cow inventory 7,930 6,846 6,728 6,657 6,477 6,741 Total principal outstanding(million) $5.61 $4.91 $4.55 $4.50 $4.50 $4.40 Co-operative Association to lobby the government to increase the financial limits of co-ops requiring an audit. In 2013, there will be considerable effort made to raise the Average number of females per active member 33 29 29 30 29 33 profile of the program now that funding is not a limiting Number of new members in first six months of the year 24 23 11 26 22 39 Number of females purchased in first six months of the year 912 837 627 869 864 979 factor for some co-ops. There will be coverage in the Ontario Beef Magazine and posters on display at sales barns and agribusinesses. As always, it will be up to local boards to use their due diligence in approving new members. Ontario Cattlemen’s Association Annual Report 2013 12 In 2011, over 1,800 head were purchased through the program OCA continues to administer the Advance Payment Program (which is a record) and as of June 30, 2012 nearly 8,000 head were which is a huge benefit for the Ontario Feeder Cattle Loan on inventory. Unfortunately during the last half of 2012 some members Guarantee Program members. In 2012, Agriculture and were forced to reduce their cow herds because of lack of forage Agri-Food Canada paid over $490,000 of interest on behalf due to drought conditions. It is encouraging to see a number of cow of the co-ops’ members, an equivalent of over $1,250 per herds in Ontario that have been established using the Beef Breeder applicant. Co-op Program. Ontario Feeder Cattle Loan Guarantee Program Statistics The program continues to have both Farm Credit Canada (FCC) and CIBC as lenders with the requirement of a 15% assurance account 2012 2011 2010 2009 2008 Number of Co-ops 18 18 19 19 19 Total Membership 727 810 835 868 979 Under Age 40** 228 192 181 178 183 During Year 700 744 761 794 805 As of December, 31 591 605 622 662 598 Purchased in Year 86,985 99,152 106,514 103,056 96,241 Sold in Year 93,877 104,733 110,455 90,115 109,418 On Hand, December, 31 62,599 69,271 75,223 79,368 66,480 Outstanding Loans, December, 31 $62.5M $64.6M 58.5M $54.1M $44.8 M Total Amount Committed, December, 31 $67.1M $68.9M $63.9 M $62.2M $52.8 M Total loans advanced during 2012 $88.9 M Active Members deposit and repayment of the loan in five years. The only exception is open heifers are allowed on the program and the first payment is interest only, and then five years of principal payments. Maximum lending values for bred cows and bred heifers as set by the lenders continue to challenge the co-ops. Despite fluctuations Number of Cattle Financial of markets and weather, the co-ops have had some initial discussions with respect to asking the OCA board to once again pursue a government guarantee for the Ontario Beef Breeder Co-op Program. In the meantime, local boards continue to have discussions with their lenders as to the maximum loan limits and interest rates. Program Administrators Beef Breeder Co-ops ALGOMA Pauline Hillstrom, Bruce Mines Algoma (705) 782-6744 NORTHERN CLAYBELT Cindy Caron, Earlton Temiskaming/South Cochrane (705) 563-8298 BRUCE Mary Stephenson, Chesley East Central Bruce (519) 363-2550 OTTAWA VALLEY Jim Cochran, Almonte Carleton/Lanark/Renfrew (613) 256-3835 CENTRAL Phyllis Tupling, Shelburne Simcoe/Dufferin (519) 925-9590 QUEEN’S BUSH Darryl Diemert, Mildmay South East Bruce (519) 367-2077 EAST CENTRAL Brenda Bonis, Lindsay Durham/Victoria/Peterborough Haliburton/Northumberland (705) 324-5701 RAINY RIVER Joyous Bragg, Emo Rainy River/Thunder Bay/Kenora (807) 482-3948/2498 EASTERN ONTARIO Deloris MaracleWhalen, Deseronto Hastings/PrinceEdward/L&A Frontenac/Leeds (613) 396-6561 GOLDEN HORSESHOE Michael Moser, Kitchener Niagara/Waterloo/Wentworth Brant/Oxford/Haldimand/Norfolk (519) 570-1684 HIGH POINT Phil Mullin, Flesherton South East Grey (519) 924-3651 HURON/PERTH Janice Hawkins-Wylie, Brussels Huron / Perth (519) 887-8899 ISLAND Dorothy Anstice, Tehkummah Manitoulin (705) 859-3925 LAMBTON Joanne Sanderson, Bothwell Lambton/Essex/Kent/Middlesex/ Western Elgin (519) 695-3980 TWIN COUNTY Sandra Laver, Tara Grey/North Bruce (519) 934-2666 TWO VALLEYS Jim Cochran, Almonte Prescott/Russell/Glengarry Stormont/Dundas (613) 256-3835 WEST BRUCE Mary Stephenson, Chesley West Bruce (519) 363-2550 WEST CENTRAL Carol Ann Pinkney, Elora Halton/Peel/Wellington (519) 846-8756 Provincial Supervisor Cheryl Russwurm Phone: (519) 367-5590 Fax: (519) 367-5607 [email protected] BRUCE-GREY BEEF COW FINANCE CO-OP Sandra Laver Grey/Bruce (519) 934-2666 EAST BEEF BREEDER CO-OP Delores MaracleWhalen Hastings/Prince Edward L&A/Frontenac/Leeds (613) 396-6561 HURON-PERTH-MIDDLESEX BEEF BREEDERS CO-OP Janice Hawkins-Wylie Huron/Perth/Middlesex (519) 887-8899 OTTAWA VALLEY BREEDER CO-OP Jim Cochran Carleton/Lanark/Renfrew (613) 256-3835 RAINY RIVER BEEF BREEDER CO-OP Joyous Bragg Rainy River/Thunder Bay/Kenora (807) 482-3948/2498 SOUTH QUEENS BREEDER FINANCE CO-OP Darryl Diemert South Bruce/South Grey North Huron/North Wellington (519) 367-2077 SOUTHWEST BEEF BREEDERS CO-OP Joanne Sanderson Lambton/Essex/Kent/East Norwich (519) 695-3980 TEMISKAMING/COCHRANE BEEF BREEDER CO-OP Mike Rheaume Temiskaming/Cochrane/Manitoulin (705) 648-4536 Ontario Cattlemen’s Association Annual Report 2013 Feeder Co-ops 13 Market Statistics Ontario Auction Markets Auction Markets Large andOntario Medium Frame Fed Steers Large and Medium Frame Fed Steers 1250 lbs + 1250 lbs + Average Weekly PricePrice Per Hundred Weight Ontario Average Weekly Per Hundred Weight Week # 2012 2011 2010 Week # 2012 2011 2010 1 2 3 121.50 121.35 123.61 98.71 98.82 99.39 84.74 83.85 82.45 27 28 29 114.37 112.90 109.89 109.31 107.66 106.65 95.21 93.25 94.13 4 123.25 119.31 123.68 118.94 101.94 100.54 104.74 104.15 84.52 82.88 83.61 86.67 30 106.97 109.91 106.09 110.97 103.10 104.51 107.70 109.43 93.20 93.14 91.43 91.74 120.68 119.91 119.31 118.66 103.01 103.62 102.89 105.05 86.99 86.73 85.47 85.51 112.69 113.05 109.91 108.02 105.10 107.37 108.57 109.46 93.94 93.44 93.51 91.96 12 13 119.82 104.89 87.88 109.84 106.11 92.06 87.20 38 39 115.84 108.89 110.66 106.66 91.14 14 15 114.13 112.05 111.75 108.49 89.57 90.11 40 41 111.37 110.54 108.00 110.44 90.33 89.98 16 17 18 19 20 113.29 112.06 108.41 109.28 91.22 92.36 110.34 113.09 109.97 110.77 92.75 93.95 110.80 114.40 115.77 107.57 106.76 105.44 90.74 91.67 94.27 42 43 44 45 46 113.19 112.25 109.63 111.93 113.30 116.74 91.81 89.36 89.82 21 22 117.91 105.65 95.97 112.12 116.47 93.87 117.00 103.50 94.09 47 48 114.81 119.38 95.79 23 24 118.00 103.04 93.11 114.19 118.22 96.24 118.27 117.48 115.21 106.84 110.21 109.31 91.80 91.10 92.37 49 50 114.35 113.22 120.02 116.16 116.44 121.42 97.92 94.98 98.73 5 6 7 8 9 10 11 Ontario Cattlemen’s Association Annual Report 2013 14 25 26 31 32 33 34 35 36 37 51 52 Large and Medium Frame Fed Steers 125.00 120.00 115.00 110.00 105.00 100.00 95.00 90.00 85.00 80.00 2010 2011 2012 wk wk wk wk wk wk wk wk wk wk wk wk wk wk 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Replacement Steers Ontario Average Monthly Price Per Hundred Weight Replacement Steers Ont Average Monthly Price per Hundred Weight Over 1000 lb. Month 500 – 600 lb. 2012 2011 2010 2012 2011 2010 January 134.88 112.29 91.13 164.20 138.86 108.02 February 139.03 118.29 93.72 169.27 148.54 115.65 March 135.22 115.87 94.12 164.22 144.74 114.28 April 129.65 115.93 95.39 161.88 147.61 117.04 May 125.83 111.85 96.51 165.63 140.05 118.12 June 132.42 111.03 94.91 167.14 135.49 116.98 July 127.81 115.56 97.88 155.91 138.03 116.99 August 124.22 115.85 100.56 146.47 136.60 121.35 September 131.36 121.00 104.43 159.90 148.55 124.33 October 128.53 124.59 102.99 158.17 157.31 129.95 November 128.50 130.19 104.60 149.08 155.18 129.69 December 132.76 129.23 111.24 149.04 153.25 131.23 Ontario Cattlemen’s Association Annual Report 2013 Price per hundred weight 1250 lbs + Large & Medium Frame Fed Steers 1250 lbs + Ontario Average Weekly Price Ont Average Weekly Price 15 Market Statistics Replacement Steers 1000 lbs + Ontario Average Monthly Pricelbs Replacement Steers 1000 + 140.00 135.00 130.00 125.00 120.00 115.00 110.00 105.00 100.00 95.00 90.00 2010 2011 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2012 Jan Price per hundred weight Ont Average Monthly Price Replacement Steers 500 - 600 lbs Ontario Average Monthly Price Replacement Steers 500-599 lbs 170.00 165.00 160.00 155.00 150.00 145.00 140.00 135.00 130.00 125.00 120.00 115.00 110.00 105.00 2010 2011 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2012 Jan Ontario Cattlemen’s Association Annual Report 2013 16 Price per hundred weight Ont Average Monthly Price Volume of Cattle Sold Through Ontario Auction Markets Volume of Cattle Sold Through Ontario Auction Markets Year Fed Cattle Stockers Total 2008 268,810 314,130 582,940 2009 231,144 295,820 526,964 2010 251,836 324,543 576,479 2011 224,356 311,107 535,463 2012 223,634 286,785 510,419 Volume of Fed Cattle Sold Through Ontario Auction Markets Fed Cattle Volume Sold Through Ontario Auction Markets 250,000 Number of head 200,000 150,000 100,000 50,000 0 2008 2009 2010 2011 2012 Ontario Cattlemen’s Association Annual Report 2013 300,000 17 Market Statistics Stocker Volume Sold Through Ontario Auction Markets Stocker Volume Sold Through Ontario Auction Markets 330,000 320,000 310,000 Number of head 300,000 290,000 280,000 270,000 260,000 2008 2010 2011 2012 Ontario Steers OntarioRailgrade Railgrade Steers Ontario Average Monthly Price Average Monthly Price 205.00 195.00 185.00 175.00 165.00 155.00 145.00 135.00 2010 2011 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2012 Jan Price per hundred weight Ontario Cattlemen’s Association Annual Report 2013 18 2009 Ontario Railgrade Steers Railgrade Steers Ontario Packing Plants Ontario Packing Ontario Average Weekly Price Plants Per Hundred Weight Week # 2012 2011 2010 Week # 2012 2011 2010 1 197.25 170.00 143.00 27 198.00 184.00 155.75 2 199.25 170.00 141.50 28 197.50 186.00 159.50 3 200.75 170.50 140.25 29 196.00 185.25 159.00 4 204.00 172.00 143.00 30 193.25 182.50 159.50 5 205.50 174.25 143.00 31 192.00 181.50 159.00 6 204.50 177.75 142.50 32 191.25 182.00 158.00 7 202.00 179.50 144.25 33 191.00 184.75 157.00 8 200.00 179.25 147.50 34 192.00 184.00 158.25 9 202.50 178.75 148.75 35 192.25 181.50 158.50 10 202.50 178.50 146.25 36 191.75 180.00 158.50 11 202.00 180.25 146.25 37 191.00 182.00 157.00 12 201.25 180.25 148.25 38 190.00 181.75 156.50 13 200.00 184.75 149.50 39 188.50 180.25 156.25 14 197.50 192.00 150.75 40 187.50 180.50 155.25 15 193.25 192.00 153.50 41 186.50 183.50 154.75 16 192.50 188.50 155.25 42 186.75 183.75 156.00 17 193.50 188.25 156.50 43 187.50 184.00 158.00 18 192.00 187.00 156.50 44 190.25 184.50 157.25 19 193.00 186.00 156.00 45 191.00 185.25 157.00 20 193.75 185.75 156.50 46 191.00 190.25 156.50 21 196.00 183.25 159.00 47 191.00 192.50 158.50 22 198.50 181.50 160.25 48 192.50 196.25 163.25 23 198.50 180.50 160.00 49 194.50 199.00 156.50 24 200.50 180.50 158.50 50 194.50 195.50 158.50 25 201.50 181.50 156.50 51 194.50 195.50 163.25 26 199.75 183.75 155.00 52 197.50 195.50 165.75 Ontario Cattlemen’s Association Annual Report 2013 Average Weekly Price per Hundred Weight 19 Market Statistics Ontario / Alberta Price Comparison Finished Steers – Live Basis Ontario/Alberta Price Comparison Monthly AverageAverage Price per Hundred Finished Steers - Live Basis - Monthly Price PerWeight Hundred Weight Month Alberta 2012 Spread January $122.14 $114.24 +$7.90 February $120.82 $113.24 +$7.58 March $118.48 $115.15 +$3.33 April $112.65 $110.10 +$2.55 May $115.25 $111.98 +$3.27 June $117.32 $111.77 +$5.55 July $110.94 $109.15 +$1.79 August $111.25 $111.13 +$0.12 September $109.48 $108.52 +$0.96 October $111.52 $108.39 +$3.13 November $112.51 $115.15 -$2.64 December $114.83 $118.97 -$4.14 Ontario/Alberta Price Comparison Finished Steers /- Live Basis -Price Monthly Average Price Per Hundred Weight Ontario Alberta Comparison 2012 Finished Steers - Live Basis - Monthly Average Price 125.00 120.00 115.00 Ontario Alberta 110.00 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 105.00 Jan Price per hudnred weight Ontario Cattlemen’s Association Annual Report 2013 20 Ontario 2012 Monthly Average Warm Carcass Weight Steers Monthly Average Warm Carcass Weight Steers Ontario Canada Month 2012 2011 2010 2012 2011 2010 January 890 888 902 879 859 868 February 892 884 893 855 849 867 March 905 896 902 885 853 868 April 915 904 901 876 849 848 May 902 882 899 858 824 825 June 876 842 853 857 811 811 July 866 844 836 865 836 824 August 877 870 839 880 865 846 September 903 883 862 894 884 863 October 914 893 876 900 893 873 November 922 900 872 890 898 870 December 914 909 879 887 892 860 Monthly Average Warm Carcass Weight Ontario Canada Month 2012 2011 2010 2012 2011 2010 January 799 790 800 799 793 811 February 808 792 800 808 787 815 March 809 796 805 809 782 805 April 810 799 809 810 775 787 May 799 776 807 799 758 759 June 797 763 770 797 731 743 July 787 751 755 787 740 763 August 790 773 750 790 786 771 September 803 786 768 803 810 790 October 806 787 778 830 818 801 November 816 791 784 819 823 796 December 818 806 789 816 811 788 Ontario Cattlemen’s Association Annual Report 2013 Heifers Monthly Average Warm Carcass Weight Heifers 21 Market Statistics Canadian Boxed Beef Cut-Out Values WeeklyBoxed Average Price Per Pound Canadian Beef Cut-Out Values Weekly Average Price per Pound Week # 2011 AAA 2011 AA Week # 27 1.8304 1.8056 1.7620 1.7483 1.5841 1.5902 1.5560 1.5738 1.7894 1.8107 1.7353 1.7685 1.6475 1.6572 1.6065 1.6510 1.8099 1.7936 1.7540 1.7596 1.6657 1.6647 1.6442 1.6509 1.8109 1.7849 1.6702 1.6647 1.8830 1.8940 1.8352 1.8560 1.6614 1.6925 1.6560 1.6729 1.8808 1.9215 1.9049 1.8516 1.8833 1.8743 1.7510 1.7693 1.7909 1.7361 1.7591 1.7647 1.8784 1.8261 1.8482 1.8128 1.8127 1.8390 1.7992 1.8302 1.8044 1.8008 1.8241 1.8022 1.8216 1.8329 1.8326 1.8306 1.7786 1.7904 1.7594 1.7708 1.8561 1.8754 1.8441 1.8814 1.7471 1.6923 1.7280 1.6771 1.9051 1.9556 1.9350 1.8971 1.9485 1.9433 1.6870 1.6794 1.6616 1.6520 1.6387 1.6244 24 25 1.9808 1.9904 1.9761 1.9304 1.9506 1.9392 1.6536 1.6606 1.6852 1.6277 1.6264 1.6562 26 1.9795 1.9155 1.6852 1.6645 1 2 3 4 5 6 7 8 9 10 11 12 13 Ontario Cattlemen’s Association Annual Report 2013 22 2012 2012 AAAWeek #AA 14 15 16 17 18 19 20 21 22 23 28 29 30 31 32 33 34 35 36 37 38 39 2012 AAA 2012 AA 2011 AAA 2011 AA 1.9520 1.9193 1.8883 1.8686 1.7049 1.7468 1.6839 1.7133 1.8620 1.8480 1.8236 1.8287 1.7113 1.6804 1.6834 1.6670 1.8452 1.8306 1.7931 1.7959 1.6676 1.7216 1.6320 1.6898 1.7934 1.8069 1.7423 1.7424 1.8430 1.8400 1.8083 1.8033 1.7412 1.7412 1.7203 1.7227 1.8485 1.8529 1.7466 1.7928 1.7978 1.6915 1.7016 1.7150 1.7313 1.6638 1.6427 1.6503 1.7815 1.7257 1.7236 1.7519 1.6562 1.6858 1.7236 1.6562 1.7361 1.7651 1.6539 1.6716 40 41 42 43 44 1.8058 1.7291 1.7013 1.6604 1.7996 1.8142 1.6973 1.7200 1.7663 1.7577 1.7575 1.6809 1.6748 1.7001 1.8538 1.8778 1.8726 1.7600 1.7868 1.7769 50 51 1.7583 1.7519 1.7277 1.7073 1.6576 1.6717 1.8364 1.8486 1.8508 1.7466 1.7575 1.7742 52 1.7790 1.6834 1.8409 1.7706 45 46 47 48 49 The Canadian Boxed Beef Report was suspended for the week ending October 5th through October 26th, The Canadian Beef Report was suspended the week These ending October (week 26 historically. (week 43) due to 2012Boxed due to inadequate reportingfor volumes. reports 5will not40) bethrough made October available th inadequate reporting volumes. These reports will not be made available historically. th Canadian Boxed Beef Cut-Out Values AAA Average price per pound Canadian Boxed Beef Cut-Out Values - AAA 2.00 1.90 1.80 2011 1.70 2012 1.60 1.50 wk wk wk wk wk wk wk wk wk wk wk wk wk 1 5 9 13 17 21 25 29 33 37 41 45 49 The Canadian Boxed Beef Report was suspended for the week ending October 5th (week 40) through October 26th (week 43) due to inadequate reporting volumes. These reports will not be made available historically. Canadian Boxed Beef Cut-Out Values AA 2.00 1.90 1.80 2011 1.70 2012 1.60 1.50 wk wk wk wk wk wk wk wk wk wk wk wk wk 1 5 9 13 17 21 25 29 33 37 41 45 49 The Canadian Boxed Beef Report was suspended for the week ending October 5th (week 40) through October 26th (week 43) due to inadequate reporting volumes. These reports will not be made available historically. Ontario Cattlemen’s Association Annual Report 2013 Average price per pound Canadian Boxed Beef Cut-Out Values - AA 23 Market Statistics Beef Grade Distribution 2012 CANADA Beef Grade Distribution 2012 Federally Inspected Plants - percent Yield Group Quality Grade A AA AAA A prime B1 B2 B3 B4 Total Y1 1.92 27.14 18.51 0.14 Y2 0.12 10.01 22.48 0.36 47.70 32.97 Y3 0.02 3.24 13.63 0.61 Total 2.06 40.39 54.61 1.11 0.06 0.02 0.54 1.21 17.50 100.00 No. head graded: 2,188,247 ONTARIO Ontario Cattlemen’s Association Annual Report 2013 24 Beef Grade Distribution 2012 Federally Inspected Plants - percent Yield Group Quality Grade A AA AAA A prime B1 B2 B3 B4 Total Total Y1 2.04 28.88 20.78 0.26 Y2 0.02 6.49 18.34 0.38 Y3 0.00 2.61 15.30 1.00 51.96 25.23 18.91 100.00 No. head graded: 502,578 Note: Based on gradings in federally inspected plants. 2.06 37.99 54.42 1.63 0.11 0.06 2.08 1.64 Canadian Live Cattle Imports and Exports Canadian Live Cattle Imports Number of head and Exports 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2008 2009 2010 2012- Imports- Jan 1- Nov 30 Imports into Canada 2011 2012 2012 Exports Jan 1- Dec 31 Exports from Canada Canadian Beef Imports andBeef Exports Canadian 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Total Beef Imports Beef Imports from US Beef Imports NonNafta Beef Exports 2008 2009 2010 2011 2012 2012 Exports Jan 1 - Nov 30 Ontario Cattlemen’s Association Annual Report 2013 Tonnes Imports and Exports 25 Industry In Review Beef Cattle Research Council by Matt Bowman, Chair, BCRC The Beef Cattle Research Council (BCRC) is Canada’s industry-led funding agency for beef research. Its mandate is to determine research and development priorities for the Canadian beef cattle industry and to administer National Check-Off funds allocated to research. The BCRC is led by a committee of beef producers who proportionally represent each province’s research allocation of the National Checkoff. It operates as a division of the Canadian Cattlemen’s Association. The BCRC plays a key role in leveraging additional revenue for beef cattle research using industry contributions made through National Check-off to secure dollars from other, primarily government, funding organizations. Recognizing this, the Council works to ensure the highest return on investment possible for industry contributions to research through ongoing consultation with other provincial and national funding organizations to coordinate national beef research priorities and improve collaborative efforts around the research evaluation and selection process. Ontario Cattlemen’s Association Annual Report 2013 Currently, 2.5 cents of every National Check-off dollar collected in Ontario is allocated to the BCRC. On average nationally, the BCRC receives approximately 15% of the National Check-off. Every National Check-off dollar directed to the BCRC for research was matched by six Agriculture and AgriFood Canada (AAFC) dollars through the current Beef Cattle Industry Science Cluster. Value of Research Investments in beef research have several benefits, including an improved ability to meet increasing global food demand, which is expected to double by 2050. Lagging productivity in combination with increased competition for land and water challenges the industry’s ability to maintain positive margins and fulfill increased demand for food in a sustainable manner. Future growth in Canadian beef production depends in large part on investments in research. For 26 Canadian beef cattle producers, every check-off dollar invested in national research programs delivers an average return of $46 in producer benefits. Producers benefit from advancements in production competitiveness related to animal health and welfare, feed grains, feed efficiency and forage, and grassland productivity. They also benefit from the maintenance or improvements in consumer confidence and beef demand through research related to food safety and beef quality. Efforts continue to focus on integrating economic analyses as an integral part of BCRC research. Canfax Research Services is working with BCRC to assess the economic returns to beef research in Canada, develop BCRC research priorities, track the economic benefit of BCRC funded research over the long term, and inform areas in which greater technology transfer is needed. Beef Cattle Industry Science Cluster The Science Cluster is a partnership between Agriculture and Agri-Food Canada (AAFC) and the Beef Cattle Research Council (BCRC) to ensure that proactive and strategic investments in applied research are allocated to programs that have the greatest potential to move the Canadian beef cattle sector forward. The partnership is focused on enhanced coordination and collaboration, and alignment of research activities with industry priorities to increase productivity, reduce costs, advance sustainability, and increase demand for Canadian beef. The BCRC developed the Cluster under Growing Forward in 2009. Joint industry and government funding commitments through the Cluster totaled $11.25 million directed to 32 research programs. Information on each of these projects is available at www.beefresearch.ca. The first Cluster (April 1, 2009 – March 31, 2013) has proven to be a very successful step towards improving coordination of beef research funding in Canada while generating meaningful, applicable results. The next Beef Cattle Industry Science Cluster (April 1, 2013 – March 31, 2018) under Growing Forward 2 will build on the success of the first. Investments within the second Cluster will focus on a portfolio of research that contributes to the industry’s ability to meet the growing global demand for high quality, safe beef through responsible and profitable production practices that support a sustainable future for the Canadian beef cattle industry. Like the first Cluster, investments in the second Cluster will lead to several benefits: • Maintenance or improvements in production competitiveness • Support for science-based policy, regulation and trade • Provide public education and advocacy information • Support of the Canadian Beef Advantage • Maintenance of professional capacity to ensure that research facilities with experienced professionals are in place to respond to emerging or critical issues in an expedient manner • Encouragement for greater uptake of research knowledge and technologies by industry The National Beef Research Strategy The BCRC and national Beef Value Chain Roundtable recognize that continued focus needs to be placed on aligning other provincial and national industry and government funders to develop a single national research strategy with defined research outcomes. The Strategy, available online at www.beefresearch.ca, is intended to: • Ensure all of industry’s research priorities are adequately addressed • Strengthen future funding requests from industry to federal and provincial governments • Maximize the value of all investments in research within the Canadian beef cattle industry Extension and Technology Transfer The BCRC is committed to technology transfer. It continues to advance the implementation of its Knowledge Dissemination and Technology Transfer Strategy, which was developed through the Science Cluster, and is focused on converting applied research into effective tools that drive industry competitiveness. A Beef Extension Coordinator was hired in January 2012. To date, much of the foundational work needed to deliver research information to industry has been developed, including a new extension website, www.beefresearch.ca, which provides access to general information on research topics, fact sheets on in-progress and completed projects, and blog articles that help producers make informed decisions on implementing innovation into their production practices. Social media tools are also utilized, and a video series called Beef Research School is currently being developed in partnership with RealAgriculture.com. Visit www.beefresearchschool.com to view the videos. During the second Cluster, the BCRC will continue to deliver regular communication to industry and expand their efforts through new mediums, such as webinars, videos and cost of production decision tools. Feedback will be gathered from audiences to inform enhancements to the website’s content and functionality, and a greater emphasis will be placed on promoting and enabling the engagement of researchers with industry, such as the involvement of young researchers in an industry-led mentorship program. Verified Beef ProductionTM Program In addition to sponsoring research and technology development, the BCRC oversees and supports the beef industry’s on-farm food safety program, Verified Beef ProductionTM (VBP). This provides a practical means for efficient administration and access to development and implementation resources for the program. It also provides an appropriate forum for policy development to then be taken forward to the CCA Board. VBP reports continued growth, with a 10% increase in the number of beef cattle operations trained in VBP in the past year. Nearly 16,600 beef operations across Canada are currently trained. This represents an estimated 38% of cow-calf production and 82% of feedlot production in Canada, or a weighted average of 67% of all Canadian beef production. In addition, nearly 900 cattle operations have participated in the optional validation audit to become registered with the VBP program. BIO by Mike McMorris General Manager, BIO BIO enters its twentieth year in 2013. Several producers have been with BIO from the beginning and we thank them for their continued support. They are the real deal! A lot has changed since BIO was created as a producer owned, not for profit cooperative in 1993: land and feed costs have skyrocketed, cow numbers have declined, the packing sector has changed dramatically and the demographics of the consumers are very different. Beef consumption, however, remains stagnant as consumers deal with their own financial challenges and health concerns. Our bioTrack system has evolved to capture more information, more easily for more producers (including feedlot) with support from both the Agricultural Adaptation Council and the Agricultural Management Institute. Other sectors have invested in modifications to the system so that it will meet the needs of sheep and meat goat producers as well. Beef producers focused on improving their management will find bioTrack comprehensive while at the same time very easy to use. It can work well with any existing hardware (readers, etc) on your farm and best of all it lets you use information the way you want to. That means information that matters to you, in the format that makes sense to you. You can even use your smart phone for data capture! Our client base is growing and we now have clients in almost every province, several states and internationally. There is a great deal of interest in South East Asia with regards to using bioTrack as a means of helping to ensure food security and safety in addition to improving productivity. Our efforts internationally are to generate income that can be used to develop even better products and services. BIO has continued work in the area of genomics or DNA analysis. We have strong partnerships with the Universities of Guelph and Alberta and have enjoyed support from Genome Alberta and the Natural Science and Engineering Research Council of Canada (NSERC) in our work with genomics. There is no doubt that genomics will revolutionize the production of all livestock species. The dairy industry has changed dramatically already and they are seeing a much faster rate of genetic progress (doubled) since they included genomics in their genetic evaluation programs. We are working collaboratively with many international partners in developing the science of genomics in order that producers can benefit from this exciting new technology. The beef industry will be required to take advantage of genomics or become so relatively inefficient as to be irrelevant. Bull testing has seen a bit of a rebound in the number of bulls tested. BIO has documented genetic differences in bulls that equate to well over $100 per progeny both to the cowcalf owner as well as to the feedlot operator that buys the calves. Are you using tested bulls? If not, how do you know they are any good? We still offer carcass prediction service to feedlot operators. Through OCA funding, we introduced many producers to this very worthwhile technology which uses ultrasound to determine the optimal marketing date for individual animals. Of course you can always order RFID and management tags from us with easy payment and delivery to your door. Ontario Cattlemen’s Association Annual Report 2013 The development of the National Strategy involved the participation of key stakeholders and major beef research funders across Canada, including the Ontario Cattlemen’s Association. It gained the commitment of the major funders to coordinate funding to achieve short, medium, and long-term outcomes in alignment with industry’s priorities. The desired research outcomes proposed under the second Beef Cattle Industry Science Cluster are directly aligned with those established under the National Beef Research Strategy. 27 Industry In Review Canada Beef Inc. by Chuck McLean Chair, CBI At the completion of the first year of operation as Canada Beef Inc., there are many reasons to be proud of the accomplishments of the staff and Board of Directors. Accomplishments during the first 15-month fiscal year include: development of a strategic three-year plan for the organization; creation of organizational and governance structures that will guide Canada Beef Inc. as it moves forward; hosting of the first Annual Forum and annual general meeting (AGM) and continue the process of finding a new home for the Calgary office. All of this was accomplished while performing the day-to-day responsibilities and work of a global marketing organization. January 1, 2012 was the beginning of the fiscal year and the organization was challenged within a very short period of time to create a new corporate culture, vision, mission, threeyear strategy, key drivers, targeted priorities, tactical actions, measurement tools and reporting, performance development systems and more robust financial accountabilities. This is a tall order, knowing that on average mergers take upwards of three years to fully complete. Regardless, Canada Beef Inc. will continue to evolve. This fits with the organizational goal of being fit-for-purpose and managing-for-the-future. Ontario Cattlemen’s Association Annual Report 2013 28 The three-year corporate strategy is the result of input from a widely diverse grouping of industry and government stakeholders. The feedback and market intelligence received enabled and facilitated the development of a new Market Development Program (MDP) which launched January, 2012 – a new program intended to provide an objective means to predict and track returns based on investment. Ongoing dialogue, primarily with valued small-and-medium sized entrepreneurs and business leaders over emerging market opportunities, risk and priorities, led to the June 1st, 2012 launch of the Market Outreach Initiative (MOI). This program is complementary to the MDP and has additional funds earmarked for such activities. Canada Beef Inc. promised to be nimble and market responsive, and at the same time, fiscally prudent and financially accountable. That is why both the MDP and MOI applications go through a rigorous assessment process to determine the value of the investment Canadian beef producers are being asked to make to any one individual or company. It is the expectation that both parties will share in the reward, but also the risk. Domestically there is a strong alignment to the new way of doing business, while internationally the market has been slower to embrace the notion of partnership based on needs and expectations. More recently Canada Beef is starting to confirm who the real partners are, and this is resulting in some very intimate brand, marketing and promotional work being done in markets such as Korea, Japan, Mexico and Russia. In some of these markets preferential tariffs are providing competitors a large advantage, which may continue to increase. As of December 2012, 70 MDP applications have been processed, and based on leveraged opportunities within the MDP, are tracking a 6.2:1 ratio globally. Every producer dollar invested into partnered initiatives focusing on branding, marketing, promotion, education and/or training is returning $6.2 dollars. This is how Canada Beef is working to establish sustainable r e s u l t s with key partners in markets around the world. Overall, Canada B e e f ’ s responsibility to shareholders is to deliver a strong return on investment (ROI). The activities, tactics and priorities are more than just what the MDP delivers. Canada Beef also provides regular, detailed Global Market Intelligence (GMIR) reporting to provide timely and factual information to enable business decisions to be made to the benefit of industry. The value generated through domestic programming has been wide reaching as efforts with the retail and foodservice markets have yielded strong results that will pay ongoing dividends. Programming with the retail and foodservice marketplace in Canada has been able to drive significant investment by the trade on specific beef programs. In total 10 market development programs were initiated with an average industry investment ratio of 3.22:1 at retail and 8.14:1 at foodservice. As the lead Canadian Beef Ambassador, Canada Beef Inc. is also highly engaged in consistent and targeted education and training around the Canadian Beef Advantage (CBA); this includes engagement within the social media environment, media relations, culinary offerings, nutrition and related research and recipe development and education. And the work continues on branding and positioning of the Canadian Beef Brand Mark. Daily efforts ensure that more Canadian beef is being featured, more often, with impactful messaging stemming from the CBA that will drive a deeper consumer understanding, commitment and resulting loyalty to Canadian beef. In September Canada Beef hosted its first Annual Forum in Calgary, Alberta. A full day that included industry and market presentations, a beef industry panel discussion and ambassador/social media sessions were followed by the first Annual General Meeting. During the AGM, attendees heard reports from board committees and elected the new Board of Directors. The Canada Beef Inc. Board for 2012-2013 year includes producer and industry representation. Ten provincial association members have been selected as board members, with elections held for both Alberta and Saskatchewan representatives: Chuck MacLean (Chair), AB; Paul Sharpe (Vice Chair), ON; Grant Huffman, BC; John Schooten, AB; Jack Hextall, SK; Trevor Atchison, MB; Gib Drury, QC; Jennifer MacDonald, NB; Terry Prescott, NS; John MacDonald, PEI. Industry representation covers all sectors along the beef value chain: Dwight Greer, Eastern Meat Solutions, Beef Processing and Distribution (importer-exporter representative); Brian Read, XL Foods; Robert Bielak, St. Helen’s; Mike Kennedy, Cargill; Arthur Batista, Ecolait; and Scott Ellerton, Sysco Canada. • • • • Finance/ Audit and Program Performance Management – Scott Ellerton Planning and Priorities – Mike Kennedy Governance – Jennifer MacDonald International Beef Trade Access Policy Advisory – Brian Read Canada Beef Executive • Robert Meijer - President • John Baker – Executive VP, Global Marketing • Ron Glaser – VP Corporate Affairs & Operations • Michael Shittu – VP Finance At Canada Beef Inc., our culture is to have a healthy appetite for change. We are prepared to do what it takes to be relevant to industry, to be productive and valued. And we continue to listen to our stakeholders, at our Annual Forum, through provincial representatives on our Board of Directors, or through our ongoing engagement, communication and collaboration with industry stakeholders and partners. We look forward to the coming year and the work ahead. Canadian Cattlemen’s Association by Martin Unrau President, CCA There has been plenty of activity in the cattle sector during the past few months enabling the industry to cap off a challenging year on a positive note. The relisting of Establishment 38 under the management of JBS USA has helped the sector move past the unfortunate XL Foods Inc. E.coli event which consumed the industry last fall. In early December, the facility was relisted to export to the U.S. and in January 2013, JBS Food Canada, Inc., the Canadian subsidiary of JBS USA, completed the transaction to purchase select Canadian assets of XL Foods Inc. The new ownership will ensure feeders and producers have another buyer for their cattle, while providing consumers with a steady supply of safe, high quality Canadian beef. Another significant development was the World Trade Organization (WTO) arbitrator assigning a firm deadline for the U.S. to ensure its Country of Origin Labeling (COOL) requirements comply with its WTO obligations. The U.S. has until May 23, 2013 to comply with the Panel and Appellate Body reports adopted by the WTO Dispute Settlement Body this past July, confirming that U.S. COOL legislation discriminates against Canadian livestock in the U.S. market. The Government of Canada introduced three new programs under Growing Forward 2 (GF2). These programs align with the CCA’s key priorities of research and innovation, competitiveness and market development and will come into effect on April 1, 2013, ensuring continuous funding for critically important existing programs like the Beef Science Cluster. The CCA will maintain its focus on achieving an AgriRecovery program that is dependable and predictable. The CCA would like to thank Agriculture and Agri-Food Minister Gerry Ritz for his efforts in these areas. The CCA International Trade Update In late January 2013, Minister Ritz announced that Japan will expand its market access to accept Canadian beef from under 30 month cattle beginning February 1. This development is most welcome by the CCA, which persisted in its long-held view that expanded access should be for under 30 month cattle. The CCA has devoted a lot of effort recently to a few key trade files that are nearing the home stretch from a negotiation standpoint. The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is one of the files. I was in Brussels in late November along with CCA Executive VicePresident Dennis Laycraft to discuss a number of issues that still need resolution in the CETA. Top of the agenda for the CCA will be positive movement on sanitary and phytosanitary issues and other crucial technical issues that are part of the overall systems approvals. In my view this is a foundational piece that must be negotiated to a successful outcome before the remaining unresolved issues can be addressed in a way that makes sense for the Canadian cattle industry. The CCA continues to hold firm that cattle producers’ support for a CETA will depend on whether real and meaningful access is achieved. This means addressing the high EU tariffs on beef as well as technical issues that include blocking the ability of Canadian meat processing facilities to utilize current food safety interventions. The CCA will continue working closely with the negotiators and Ministers in order to ensure that if a CETA is reached, it will be a deal that Canadian beef cattle producers can support. Other trade files that have required a concerted ongoing effort to result in a positive outcome include restoration of access of under thirty month (UTM) Canadian beef to South Korea and UTM boneless Canadian beef to China. The WTO determination that U.S. COOL discriminates against Canadian livestock – a decision subsequently upheld by the WTO Appellate Body - is a significant achievement of direct benefit to industry competitiveness. Japan recently pledged that it will seek entry to the Trans-Pacific Partnership (TPP) talks. Canada joined the TPP in October and participated in the next negotiating session in December. CCA’s John Masswohl was in New Zealand to work with our Five Nations Beef Alliance partners to build support for our collective TPP platform. The platform is built on the unique opportunity TPP provides to address several trade barriers such as to achieve compliance with existing international standards and to create new standards within the TPP region that have not been achievable globally. Ontario Cattlemen’s Association Annual Report 2013 Within the board, four committees have been formed to oversee specific areas of business. Committees assume an active role in governing Canada Beef. Members are accountable to the board for fulfilling the mandates determined by the board and actively performing their assigned duties related to the committee’s business on behalf of the board. Canadian beef is well positioned to gain new access to the important Japanese 29 Industry In Review Canadian Cattlemen’s Association Continued market regardless of whether or when Japan is eventually admitted to the TPP. Japan continues to go through its process towards access for UTM beef and is making solid progress. The best estimate for implementation is the first quarter of 2013. If Japan moves to UTM (from under 21-months) and we are successful with a favourable economic partnership agreement, our prospects are good. to call on both governments to conclude the Canada-Korea free trade agreement (FTA). Negotiations for that agreement began in 2005, but have been on hold since 2008. We must conclude a FTA with Korea to restore tariff parity between U.S. and Canadian beef so that we don’t become uncompetitive in that market after having restored access. The CCA strongly encourages a Japan-Canada Economic Partnership Agreement which eliminates Japan’s 38.5 per cent import duty for Canadian beef. A successful agreement with Japan could increase the value of Canada beef exports to over $275 million annually and more importantly will increase the value of every animal we produce. The United Arab Emirates (UAE) fully re-opened its door to Canadian world-class beef. Ontario Cattlemen’s Association Annual Report 2013 30 Market Access Successes In July, the United Nations’ food standards body, the Codex Alimentarius Commission, agreed on a set of maximum residue limits for the cattle and hog feed ingredient ractopamine. This is an important development for Canada’s cattle industry as it removes any justification for a nonscientific trade irritant that has hindered trade in Canadian beef to key Asian markets like Taiwan and China. It is paramount to note that the approval of the ractopamine standard is a victory for scientific decision making at Codex. The Regulatory Cooperation Council (RCC) effort to thin the border between the Canada and the U.S. will require a concerted effort to see it through to the type of conclusion we envision. Important initiatives for producers under the RCC include roadmaps to achieve the elimination of unnecessary duplication of meat inspections for imports, implementation of electronic border clearances, and improved approval processes for veterinary drugs. Since the Government of Canada terminated the WTO Dispute Settlement Panel against Korea, the CCA has continued Domestic Issues Update The CCA remains focussed on ensuring the long-term competitiveness and sustainability of the industry. Tools such as a national price and basis insurance program, modelled after the program available in Alberta, would help producers better manage risk. So would good disaster programs that work for producers in a timely manner. Disaster programs are ad-hoc programs and are not part of the Business Risk Management suite of programs. Pre – XL event concerns around maintaining processing infrastructure until the cattle herd expands remain. The impact of having fewer cattle available for processing, particularly cull cows for producing ground beef, is being felt and will continue into 2013 and 2014. The CCA is working to ensure that Canadian operations have a competitive advantage. Sustainability The CCA demonstrated its continued commitment to sustainable beef production by joining the Global Roundtable for Sustainable Beef (GRSB). Like the GRSB, the CCA is focussed on developing the necessary tools to ensure beef production is environmentally sound, socially responsible and economically viable. The renewal of the Canadian Code of Practice for Beef Cattle through the National Farm Animal Care Council process is important for our industry. We need to show the public and our customers that we are proactive on animal care, environment and any other issues of concern. A renewed Code will help in the conversations we need to have with these important groups. Fortunately, we have great pro-industry representation in our young people. We’ve all enjoyed the positive pro-agriculture messaging in the YouTube videos produced by participants in the Cattlemen’s Young Leaders (CYL) program. The CYL program continues to be a huge success and is a constant reminder that there is no shortage of bright and eager young people who are passionate defenders of agriculture and are looking to stay involved in the industry, and with good reason. A recent study funded in part by the CCA examining the industry’s overall economic impact found that the cattle industry is responsible for $33 billion worth of sales of goods and services either directly or indirectly and that every job in the sector yields another 3.56 jobs elsewhere in the economy. For every $1 of income received by workers and farm owners, another $2.08 is created elsewhere and, either directly or indirectly through induced income effects, the beef sector generates 228,811 jobs in the country. Innovation has taken on an increasingly important role in driving this industry forward. The Beef InfoXchange System (BIXS) continues to operate and evolve, with ongoing developments to improve program and software delivery. There are more than 1. 5 million detailed carcass records in the BIXS database, with ongoing developments to improve program and software delivery. This information is linked to the animal’s CCIA tag ID number and is being submitted by the two major packers in Canada, Cargill Foods and I am pleased with the CCA’s achievements of 2012 and look forward to continued success in 2013 in collaboration with all stakeholders in the value chain and governments. Canadian Cattle Identification Agency Canadian Cattle Identification Agency (CCIA) is a not-for-profit, industry-initiated and led organization incorporated to establish a national cattle identification program to support efficient trace back and containment of serious animal health and food safety concerns in the Canadian cattle herd. The agency manages the Canadian Livestock Tracking System (CLTS) database – a trace back system that maintains radio frequency identification (RFID) tag information, and is led by a Board of Directors made up of representatives from all sectors of the livestock industry. Board of Directors At CCIA’s annual general meeting in April, Darcy Eddleston, Alberta cow-calf producer, and Canadian Veterinary Medical Association representative Dr. Pat Burrage were re-elected as Chair and Vice-Chair, respectively. Canadian Bison Association representative Terry Kremeniuk was re-elected as Finance and Audit Chair. Saskatchewan Stock Growers Association’s Mark Elford was re-elected as Director-at-Large; and Dairy Farmers of Canada representative Ron Versteeg assumed the second role of Director-at-Large – replacing Canadian Cattlemen’s Association representative Dan Darling. In 2012, Canadian Sheep Federation (CSF) joined CCIA’s board as a member organization with Bill Gibson as its voting representative, giving the board representation from all species groups for which CCIA acts as administrator. Eddleston and Burrage have been effectively raising awareness about the importance of working together to advance livestock traceability. They have made presentations to industry on CCIA initiatives and the Cattle Implementation Plan at events including the Saskatchewan Beef Industry Conference 2012 and Alberta Beef Producers Annual General Meeting 2012, as well as educating international audiences from Korea, Taiwan and Chile through Canada Beef and the Canadian Food Inspection Agency. CCIA continues to field requests for these two speakers and the rest of CCIA’s Board of Directors for events in 2013. Canadian Agri-Traceability Services With the goal of providing Canada with highquality, innovative, integrated and efficient traceability services, the project steering committee contracted a professional services firm to conduct a study to determine the feasibility of establishing one multi-species database for traceability in Canada with the principle participants: CCIA, Agri-Traçabilité Québec (ATQ) and Agriculture and AgriFood Canada (AAFC). In 2012 and ongoing, the professional services firm has made significant progress on assessing CCIA’s CLTS and ATQ’s Agri-Trace databases and systems. The results of this study are important for both boards to assess the impact Canadian Agri-Traceability Services (CATS) may have on their respective operational budgets, and acquire an understanding of the operational costs for CATS. The final proposal and recommendations on the system and database will be presented to CCIA and ATQ boards for review in early 2013. Cattle Implementation Plan The Cattle Implementation Plan (CIP) is the industry’s roadmap to achieve a sustainable, effective and efficient cattle traceability system for Canada. The direction of this roadmap was endorsed by industry and governments at the National Cattle Traceability Summit in 2011 in Saskatoon, Saskatchewan, where important milestones were attained and consensus was reached to move ahead in the resolution of movement recording and overcoming premises identification issues. Working collaboratively with industry and governments, this committee’s role identifies the targets, steps and issues in implementing traceability in the cattle industry. In 2012, this committee continued to refine the CIP, received confirmed support from 17 Canadian organizations for the three CIP resolutions as well as developed a CIP costing sub-committee, a project charter and project manager scope of work. Moving forward, the costing project will assess three key areas of the CIP: 1) auction marts, 2) feedlots and 3) other co-mingling sites (e.g., fairs, exhibitions, etc.). The expectations outlined in the CIP are being incorporated into the Six Species Regulation Amendment to the Health of Animals Act, which is currently under development by the Regulation Amendment Review Committee of which CCIA Board Chair Eddleston is a member. Working with AAFC, CCIA completed a project to modify the CLTS database to accept validated, provincially-generated premises identification number (PID) by early 2013. This high-level initiative addresses each province and territory’s position on managing the generation of PIDs for their livestock operators and agri-businesses with co-mingling animals. This means the PID registration process will change for CLTS database users in British Columbia, Yukon Territory, Manitoba, Ontario, Quebec, Nova Scotia, Newfoundland and Labrador, New Brunswick and Prince Edward Island. As of October, Canadian livestock operators and agri-businesses in these regions will need to acquire a provincial/territorial PID in order to register their premises in the CLTS database. These CLTS PID updates are crucial because they will facilitate additional movement data to be recorded in the database from outside Alberta. These system enhancements will also facilitate the needs of the West Hawk Lake Zoning Initiative. Ontario Cattlemen’s Association Annual Report 2013 XL Beef. This Computer Vision System cameraderived data includes such economically important information as hot carcass weight, yields and quality grades, marbling scores, ribeye areas and more. This information is only available to registered BIXS users on the animals they have submitted data on in the system. BIXS is presently funded through the Agricultural Flexibility Fund of Agriculture and Agri-Food Canada. 31 Industry In Review Canadian Cattle Identification Agency Continued Tag Retention Project In 2011, CCIA, CFIA and AAFC developed and initiated a long-term tag retention trial to collect baseline data on cattle tag retention and readability as well as recommend solutions to enhance tag retention and readability. This trial was designed to involve animals from various geographical areas ranging from British Columbia to Ontario to ensure appropriate representation of farming styles and environments. To date, thousands of animals have been tagged with approved CCIA RFID tags with equal distribution of tag types/ brands to each farm test site (selected based on appropriate handling facilities to optimize tag application and retention). Ontario Cattlemen’s Association Annual Report 2013 In this trial, all tags are being applied per manufacturer’s directions to three study groups (male and female calf-yearlings, mature cows and bulls) with project activity reports available following each data collection event (at time of tagging, weaning, summer turn-out, fall gather). The final report for this project will include data sets regarding tag retention and readability by ranch, brand of tag, and by each study group. • • by Kelly Daynard Communications Manager, FFCO 2012 Highlights Providing Expertise and Leadership on Issues Farm & Food Care managed and launched a new national public attitudes study in August. A total of 2,000 • In September, Farm & Food Care cohosted a North American Forum for Sustainable Agriculture. This session was attended by delegates from across Canada and the USA and provided a good opportunity for discussion Kristen Kelderman was hired full time to the role of Farm Animal Care Coordinator and has spent the year managing the organization’s farm animal resources. In particular, work has gone into managing and improving the Animal Care Helpline Service and developing euthanasia training and resources. • The Helpline service responded to 12 calls in 2012 for dairy and beef cattle, poultry, goats and sheep. • The Farm & Food Care Foundation hosted Dr. Temple Grandin for a fundraising lecture in June. Dr. Grandin, North America’s leading animal welfare expert, also led a training workshop for processing plant staff while she was in Ontario. about agriculture’s role in providing a sustainable food supply. Farm & Food Care Ontario January 1 marked the one-year anniversary of Farm & Food Care Ontario, a group that was formed with the amalgamation of two long standing Ontario coalitions: the Ontario Farm Animal Council and AGCare. Advancing Responsible Farm Animal Care • A total of 123 firefighters, police officers, bylaw officers, animal control officers and OSPCA inspectors went through livestock emergency training workshops coordinated by Farm & Food Care and facilitated by Jennifer Woods. New training videos will also be posted to www.livestockwelfare.com • • 32 Canadians from coast to coast were polled on their attitudes about food and farming with their answers compared to similar studies dating back to 2001. • • Farm & Food Care staff coordinated four Speak Up team training sessions for Ontario farmers in 2012. Since 2005, 260 Ontario farmers as well as farmers in four other provinces have taken this training workshop, designed to create confident spokespeople on issues related to food and farming. Work continued on training Young Ambassadors in 2012 with presentations to 400 agricultural college students and fair ambassadors. In 2013, an online forum will be created to give young ambassadors a place to discuss their agricultural advocacy efforts with each other. In 2012, staff gave 85 presentations and training workshops to farmers, commodity staff, agri business employees, service club members and politicians. Staff also participated in 106 media interviews on a variety of agricultural topics. Work continues on the new national Agriculture Issues Centre Pilot project which is providing leadership and expertise on issues targeting agriculture and food production practices. • Farm & Food Care has representation on the OMAFRA/Ministry of Community Services/OSPCA Farm Animal Welfare Task Force, the Poultry Industry Council and the National Farm Animal Care Council. • A new Animal Care Advisory Council has had two meetings in 2012. Council development will continue to be a priority in 2013. Education and Events • In 2012, Farm & Food Care led tours for students from six Ontario culinary colleges (Fanshawe, St. Clair, George Brown, Georgian, Algonquin and Sir Sandford Fleming). Since 2006, 32 tours have been organized for approximately 856 culinary students. • Media tours were organized for 75 food writers and reporters in both Toronto and Ottawa this year with support and participation from many commodity organizations. • It was estimated that 1.976 million Ontarians (including 40,000 students) visited at least one of Farm & Food • The annual children’s creativity contest received 1,520 entries. The contest encourages students to document their visit to a farm, farm exhibit or fall fair by drawing a photo and telling a story about their experience. Public Outreach • • A total of 7,500 copies of the 2012 Faces of Farming calendar were printed and mailed to politicians (federal, provincial and municipal), media, grocery stores and butcher shops. Reaching out through social media continues to be a big focus of the organization. Farm & Food Care now has about 2,700 followers on Twitter (up 1,000 in the last year) as well as 317 followers on Facebook. YouTube and Pinterest accounts are also receiving a great deal of traffic with FFC’s 100 YouTube videos being viewed 16,605 times in the last year. • Three schools participated in a pilot “Friend a Farmer” program designed to connect farmers to students from an urban classroom. Livestock and crop farmers from Oshawa, Kitchener and Windsor participated in this year’s initiative. • Farm & Food Care continued to work on behalf of Ontario commodity groups to the www.farmingsources.com website which serves as a media database on agricultural issues. It is searchable by organization and by topic, and also features an ongoing index of current Ontario agriculture press releases. More information on Farm & Food Care Ontario’s activities can be found on its website or you can subscribe to its monthly e-newsletter. The organization’s annual meeting will be held April 3, 2013 in Guelph. Ontario Cattle Feeders’ Association by Jim Clark Executive Director, OCFA The Ontario Corn Fed Beef (OCFB) Program is the blueprint for our organization’s goal to develop a successful branding program to maintain and grow the province’s cattle sector. Since the program was developed more than ten years ago, we have never wavered from our original commitment to the producer and the brand. Many other jurisdictions and organizations are now looking closely at what we have started with respect to the development of the brand and the partnership within the value-chain. As you will recall, one of the main reasons for starting an Ontario brand in 2001 was to make sure that our provincial beef industry took the key steps needed to maintain and grow the province’s beef and agricultural sector. Our program not only relates to the beef sector, it also relates to our important partnership in the farm production cycle. One example of this would be our working relationship with the Grain Farmers of Ontario. The OCFB members are cash croppers as well. The only difference is that we market our grains through the cattle we feed. Instead of a grain trailer, we move it and a pile of grain by-products on the hoof. 2012 has been another great year with numerous successes. The hallmark was the growth of the Ontario Corn Fed Beef Program. I firmly believe that Ontario Corn Fed Beef is on the road to even more success and producing more value for the entire Ontario beef sector. The number of cattle qualifying for the program continued to increase and producers have remained committed to the program. Our partnership with Loblaw Companies Ltd. continues to grow and flourish. In 2011, the OCFB brand was featured in 156 stores. This past year that number grew to 241 Loblaw stores and affiliate stores across Ontario. As part of the partnership with Loblaw, we launched the Ontario Corn Fed Beef Certified Platinum program. This new premium brand, which is sourced from the top three per cent of the Corn Fed cattle, is starting to gain strength in the retail counters. We have also been very blessed to retain our brand partnerships with 100 plus gourmet butcher shops and retailers, many of which have been with us since the inception of our brand in 2001. As well, Morton Wholesale out of Windsor Ontario continues to expand and grow their wholesale business and the OCFB brand in the food service sector across Ontario. All combined, I firmly believe that this success has translated into stronger markets for our cattle. Just to give you a picture of the producer support in cattle numbers coming into the program, as of November, 2012, 223,463 cattle were identified as OCFB. The year-to-date cattle numbers have grown significantly year over year. • • • 2009 - 57,448 head for the year 2011 - 148,066 head for the year 2012 - 223,463 head as of Nov. 30 We also continue to look for new markets. For example, we recently formed a partnership with SSP America – “The Travel Experts.” As a result, you will now see your OCFB brand featured in their restaurants at Pearson International Airport in Toronto. So whether you’re flying out on business or pleasure, make sure you stop by the Food Travel Experts and enjoy some Ontario Corn Fed Beef, proudly supplied by our provincial packer partner, Norwich Packers. While confident about the future expansion of the program, the road to continued growth will not be smooth. We will continue to face a number of challenges and hurdles. Some of these challenges are industry-wide while others can be considered specific to our program. We face the tough task of Ontario Cattlemen’s Association Annual Report 2013 Care’s displays at 34 different events throughout the 2012 fair and exhibition season. 33 Industry In Review Ontario Cattle Feeders’ Association Continued growing our brand at a time when the overall cattle numbers are low and the number of producers continues to dwindle. Tighter cattle supplies have everyone from producers, packers and retailers watching closely. From our side, it is people in the cow-calf and feedlot sector that will ultimately make the changes happen and it is producer interest in the beef industry that will be key to rebuilding the beef cow herd, thus helping to maintain and grow fed cattle inventories. During the past summer, we conducted a 60-store tour of the province and had the chance to talk to many consumers. By and large, consumers told us they believed in the Canadian beef industry and the safety and quality of our beef in general. Yet there are still many underlying questions that are being asked. Consumers have a huge level of respect for farmers in general and I feel they have shown that support, time and time again. Ontario Cattlemen’s Association Annual Report 2013 34 In closing, the producer and industry support towards the brand by way of funding has provided the Ontario Corn Fed Beef program, Ontario’s beef producers and Ontario’s consumers a great opportunity to provide and source Ontario Corn Fed Beef throughout the province. I would personally like to thank the Ontario Cattlemen’s Association for their continued support of the Ontario Corn Fed Beef Program. I would also like to take this opportunity to thank The Honourable Ted McMeekin, Ontario Minister of Agriculture, Food and Rural Affairs, Canada Beef Inc. and The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food Canada. We’re also grateful for the support we receive from beef producers, processors and other industry partners, retailers and consumers. I look forward to our continued efforts as we make the Ontario Corn Fed Beef Program one of the very bright lights in Canada’s agri-food industry. Ontario Veal Association by Jennifer Haley, OVA Executive Director 2012 has been another busy year for the Ontario Veal Association (OVA) with a number of important projects and initiatives taking place. The OVA continues to partner with both Ontario Goat and Ontario Rabbit as the Ontario Livestock Alliance sharing office and administration costs. Together, with our Ontario Agricultural Sustainability Coalition (OASC) members, we worked extensively on ensuring that there would be a 2013 Risk Management Insurance Program for Ontario’s veal producers. Albeit with a program cap, the OVA is encouraged to see funds continuing to flow to participating veal producers where needed most. The OVA is a member of a number of important industry organizations such as the Agricultural Adaptation Council, the Ontario Agricultural Commodity Council, the Ontario Livestock and Poultry Council, Farm and Food Care, Ontario Agri-Food Education, President’s Council and others. The OVA believes that together, we can do more to achieve our collective goals. The OVA held its 5th bi-annual Healthy Calf Conference in December 2012. New this year, the conference, which attracted over 400 dairy and veal producers, was held in two different locations: Stratford and Chesterville. Calf health is a top priority for the OVA and its members. As a result, the OVA continues to support calf health research with the University of Guelph. As well, the OVA maintains www.calfcare.ca and distributes a bi-monthly electronic newsletter to over 1,000 subscribers. Consumer promotions and communications also continue to be another key strategic priority for the OVA. Through our Ontario Veal Appeal campaign, one of our goals is to educate consumers about veal with new recipes and meal solutions. These recipes are distributed at various consumer shows and events, via our electronic newsletter and on our website: ontariovealappeal.ca. As well, we continue to target the health conscious consumer with a number of programs with both Health Check and most recently Weight Watchers. We are now preparing for our upcoming Producer Expression of Opinion vote with the Farm Products Marketing Commission. This work began in 2003 during the time of the Ontario Cattlemen’s Association organizational review. Both the OVA and OCA agreed that it would be the natural evolution of our relationship for the OVA to seek status as its own organization under the Farm Products Marketing Act. Over the past few years, the OVA has worked collaboratively with the Farm Products Marketing Commission to develop and support a proposal that would see the OVA have the ability to collect its own $3.00/head check-off and producer information. This would mean an exemption from the Beef Cattle Marketing Act for dairy calves to avoid duplication. The OVA certainly appreciates the excellent relationship it has with OCA as cattle industry partners. The support of OCA staff and Directors throughout this process has been most helpful. The producer vote, involving both veal and dairy producers, will take place March 18-29, 2013. For more detailed information on the OVA’s accomplishments or to receive a copy of the 2012 Annual Report, please contact the OVA office at 519-824-2942. by Mike Draper, Livestock Community Sales Act Coordinator The Veterinary Services Unit (VSU) of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) is responsible for a variety of regulatory programs that help provide an effective cattle marketing system for Ontario. For example: • • • • Under the Beef Cattle Marketing Act, OMAFRA establishes consistent standards for weighing and carcass dressing in settlement for the sale of beef and veal cattle. Under the Food Safety and Quality Act, OMAFRA enforces fallen animal, off-farm deadstock disposal and beef grade labelling regulations. Under the Livestock Community Sales Act, OMAFRA ensures that livestock auction staff meet facility standards and record-keeping requirements, and establish a health and welfare inspection system that protects the welfare of livestock sold through licensed public auctions. Staff in the VSU also regulate the sale of livestock medicines and respond to hazards under the provincial Animal Health Act. Weigh and Trim The VSU monitors the accuracy of weigh scales at auctions that sell cattle by weight. The unit’s Weigh and Trim Inspector randomly inspects and tests scales across Ontario throughout the year. Each sale facility is also required to have their scale inspected and certified once a year by a technician accredited by Measurement Canada. The VSU requires a scale certificate each year for LCSA licence renewal. Any concerns regarding inaccurate weighing of cattle at auction should be reported immediately to the operator of the auction and to the VSU as scale tickets are only required to be kept for two weeks after the sale date. The LCSA program uses a progressive compliance system to deal with compromised animals. The compliance system involves warning letters, advisory visits and other compliance actions prior to referring the incidents for investigation and prosecution. Unfortunately, in some cases compliance efforts fail and court action is required. Several court cases have been completed, and some are currently before the courts including: The VSU also conducts trim inspections at rail grade slaughter plants to ensure that carcasses sold on a rail grade basis are trimmed according to the regulations. These inspections are necessary to prevent excessive pre-weigh trimming that may result in reduced payments to producers. • Livestock Community Sales Program The VSU provides inspection at livestock auctions through the services of contract local veterinary inspectors. The unit also conducts training and appointment of livestock auction lay inspectors. Lay inspectors identify abnormal animals for veterinary inspection. In 2012, over one million animals were marketed through licensed livestock auctions in Ontario. In 2012, the VSU conducted continuing education sessions across Ontario for lay inspectors on animal health and welfare, lay inspector duties, equine health and bovine zoonotic diseases. The VSU also conducted captive bolt euthanasia certification for local veterinary inspectors. OMAFRA has taken a number of steps to address issues associated with unfit and compromised animals arriving at licensed sale facilities, including enforcement of the requirement for: • Diseased or compromised livestock to be segregated from healthy livestock at auctions, and; • Fallen animals (animals disabled by disease, emaciation or any other condition that they are likely to die from) to not be moved off the farm. Cull dairy cows continue to constitute the majority of the unfit cattle arriving at livestock auctions. • • • A livestock auction was fined $5,000.00 for not segregating diseased livestock for veterinary inspection. A dairy farmer was fined $1,250.00 for moving a fallen cow to auction. An unlicensed cattle dealer has been charged with multiple counts of failing to obtain a cattle dealers license and is currently before the courts. A livestock trucker has been charged with moving a fallen dairy cow to auction and is currently before the courts. VSU staff continue to play an active role in animal welfare, with one staff member acting as the provincial representative on the National Farm Animal Care Council. VSU contributes to the development of new national Codes of Practice for the Care and Handling of Farm Animals and on-farm animal welfare assessment programs. The VSU also works with the Ontario Beef Cattle Financial Protection Program to ensure that unlicensed cattle dealers become licensed. Producers are encouraged to ensure their dealer is licensed prior to any sale. Ontario Cattlemen’s Association Annual Report 2013 Weigh & Trim Inspection Report 35 Industry In Review Ontario Beef Cattle Financial Protection Fund Financial Statements Ontario Cattlemen’s Association Annual Report 2013 36 INCOME March 31 Deduction Income Investment Income Total Income EXPENSE March 31 Claims Paid Less Recoveries Fund Expenses Total Expenses 1982-90 $ 4,193,421 $ 1,840,250 $ 6,033,670 1982-90 $ 1,144,988 $ 230,190 $ 1,375,178 1990-91 122,045 550,719 672,764 1990-91 1,062,592 26,468 1,089,060 1991-92 122,690 516,580 639,270 1991-92 (4,128) 28,141 24,013 1992-93 129,619 359,584 489,203 1992-93 297,706 26,318 324,024 1993-94 118,522 320,641 439,164 1993-94 0 16,531 16,531 1994-95 117,214 272,497 389,711 1994-95 631,307 25,276 656,583 1995-96 116,336 395,416 511,751 1995-96 (140,770) 39,655 (101,115) 1996-97 122,363 280,360 402,723 1996-97 84,964 55,604 140,568 1997-98 129,849 285,801 415,650 1997-98 1,040 12,874 13,915 1998-99 119,662 330,511 450,173 1998-99 135,420 51,087 186,507 1999-2000 117,271 291,267 408,537 1999-2000 7,534 74,151 81,685 2000-2001 117,586 461,611 579,197 2000-2001 2,086,337 79,302 2,165,639 2001-2002 104,694 210,047 314,741 2001-2002 678,357 192,367 870,724 2002-2003 116,558 196,465 313,023 2002-2003 (39,760) 63,465 23,705 2003-2004 100,233 186,020 286,253 2003-2004 131,342 66,473 197,815 2004-2005 106,275 170,477 276,752 2004-2005 247,787 69,989 317,776 2005-2006 115,188 222,225 337,413 2005-2006 0 64,248 64,248 2006-2007 103,033 254,962 357,995 2006-2007 (350,000) 62,535 (287,465) 2007-2008 102,652 296,185 398,837 2007-2008 0 69,859 69,859 2008-2009 113,422 265,844 379,267 2008-2009 0 67,631 67,631 2009-2010 100,248 262,957 363,205 2009-2010 (31,044) 87,295 56,251 2010-2011 109,882 264,454 374,336 2010-2011 235,110 148,360 716,338 2011-2012 105,346 269,320 374,666 2011-2012 69,371 116,571 402,483 Fund Balance at March 31st 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 $ 496,350 $1,559,367 $2,111,466 $2,803,336 $3,470,057 $3,629,155 $4,353,020 $4,683,492 $4,267,196 $4,882,453 $5,047,632 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 $5,470,264 $5,203,392 $5,816,257 $6,078,412 $6,480,147 $6,743,918 $7,070,770 $5,484,329 $4,928,346 $5,218,720 $5,306,236 2005 2006 2007 2008 2009 2010 2011 2012 Dec - 12 $5,265,078 $5,538,243 $6,183,703 $6,512,681 $6,824,578 $7,131,542 $7,122,407 $7,311,131 $6,809,656 Note: 1) Total income in 1982-83 includes a $25,000 start-up grant from OMAFRA. 2) Deductions to the Fund were lowered from $0.20/head to $0.10/head in 1984. Deductions were lowered from $0.10/head to $0.05/head in April 1989 for sellers and agents and eliminated for buyers. 3) Fund expenses include the board and expenses for determining financial responsibility. Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports 37 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 38 39 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 40 41 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 42 43 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 44 45 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 46 47 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 48 49 Ontario Cattlemen’s Association Annual Report 2013 OCA Financial Reports Ontario Cattlemen’s Association Annual Report 2013 50 OCA 2013 Preliminary Budget Sheet2 2013 INCOME BUDGET Checkoff Income License Fees (Gross) $ 3,360,000 Less: CCA 380,000 CCA Legal Assessment 60,000 National Checkoff 1,108,800 Ontario Veal Association 400,000 Less: Veal NCO Returned 169,000 Commissions 51,000 Seven Day Dealer Refund NET CHECKOFF INCOME 155,000 $ 1,374,200 Other Income Interest/Investment Income $ Toronto Stockyards Land Development Board 85,000 993,334 Lease Revenue 17,000 Project Income 2,000 Brand Registration 1,000 SUBTOTAL $ 1,098,334 Total Net Income $ 2,472,534 Administrative & General Elected Officers Remuneration $ 200,000 Elected Officers Expenses 190,000 Net Salaries and Benefits 690,000 Staff Expenses 60,000 Staff Training 6,000 Postage 13,000 Premise Costs 75,000 Office Supplies/Equipment Rentals 62,000 Telephone & Fax 22,000 Legal 12,000 Audit & Accounting Services 12,000 Amortization 18,000 Annual Meeting - Hotel & Voting Delegates SUBTOTAL 155,000 $ 1,515,000 Ontario Cattlemen’s Association Annual Report 2013 EXPENSES 51 OCA Financial Reports OCA 2013 Preliminary Budget Sheet2 Expenses Continued 2013 BUDGET Memberships OACC/AAC $ Farm & Food Care Ontario 1,150 39,480 OAFE 500 OFA/CFFO 750 OFC 4,600 OIMP 1,050 Grants County Grants and Insurance 200,000 Miscellaneous 6,500 Communications 130,000 Lobbying Expense 155,000 Trade Shows 8,000 License Fee Enforcement 103,000 SUBTOTAL $ 650,030 Research, Industry Development, Market Development $ 115,000 Calf Club Project 50,000 Verified Beef Production Quality Starts Here Ontario Cattlemen’s Association Annual Report 2013 52 50,000 Ontario Corn-Fed Beef Project 200,000 Ontario Beef Breeder Co-op Program Support 6,000 Feedlot/Cow-Calf/Government Relations Committees 10,000 TOTAL OPERATING EXPENSES $ GAIN /LOSS ON OPERATIONS $ 2,596,030 (123,496) LOOK no further than Pfizer People, products, programs and services help deliver consistent beef solutions. 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Call Dr. Sylvester Sebastian at 1-800-265-8570 Get straight answers to your toughest questions 2013 OCA Annual General Meeting Tradeshow Exhibitors Agricorp Beef Improvement Opportunities (BIO) Bio Agri Mix LP/Phibro Boehringer Ingelheim Canada Ltd. Canada Beef Inc. Canadian Cattle Identification Agency Cattle In Motion Daco Animal Nutrition Elanco Animal Health Farm & Food Care Ontario Farmers Farmacy Gallagher Animal Management Systems Jones Feed Mill Ltd. Kane Veterinary Supplies Ltd. Masterfeeds Merck Animal Health Merial Canada Inc. New Life Mills Ontario Forage Council Ontario Independent Meat Processors Ontario Ministry of Agriculture, Food and Rural Affairs Pfizer Animal Health University of Guelph - Animal and Poultry Science Ontario Cattlemen’s Association Annual Report 2013 Mapleseed Inc. 59 OCA’S 51st ANNUAL GENERAL MEETING DOUBLETREE BY HILTON HOTEL, 655 DIXON ROAD, TORONTO Wednesday, February 20, 2013 9:00am 12:15pm Welcome and Convene, Dan Darling, OCA President Elections to the 2013 OCA Board of Directors Canadian Cattlemen’s Association Update Update on the Beef Cattle Code of Practice Ontario Mapleseed Pasture Award Presentation Lunch 1:15pm Reconvene Elections to the 2013 OCA Feedlot and Cow-Calf Committees Elections to the Canadian Cattlemen’s Association Farm Animal Care Helpline Update The Environmental Stewardship Award Presentation Becoming a Beef Ambassador, Canada Beef Inc. Debate on Resolutions 5:30pm Past Presidents Reception 6:30pm 2013 OCA ANNUAL BANQUET Presentation of Queen Elizabeth II Diamond Jubilee Awards After Dinner Performer: Comedian, Damian Mason Thursday, February 21, 2013 9:00am Reconvene Annual Meeting Keynote Speaker: Wayne Stark, CEO, Pursuit Development Labs “Ontario Beef Business: Current Situation, Future Possibilities” Producer Panel Discussion: “Ontario Beef Business: Building a Strong Foundation” 12:00pm Lunch 1:00pm Beef Cattle Research Council Update Agricultural Research Institute of Ontario Update OCA Board of Directors Q & A Session 18th Annual Cattlemen’s College In conjunction with the OCA Annual General Meeting February 19, 2013 Doubletree by Hilton Hotel, Toronto PROGRAM 7:00pm Welcome Greetings from Pfizer Animal Health Canada Lyle Miller, Highway 21 Feeders, Alberta Brian Perillat, Canfax Please note that the Cattlemen’s College is an optional program for the 2013 OCA Annual Meeting. OCA will not pay for additional room nights or per diems for Cattlemen’s College. There is no registration required for this event. Spousal Program Sponsored by Daco Animal Nutrition February, 20: Trip to Royal Ontario Museum February, 21: Trip to Square One Shopping Centre Adjourn (late afternoon) ONTARIO BEEF BUSINESS: THE ENGINE OF RURAL ONTARIO 2013 OCA Annual General Meeting Platinum Sponsors Gold Sponsors Silver Sponsors Ontario Cattlemen’s Association 130 Malcolm Road Guelph, ON N1K 1B1 Telephone: 519.824.0334 Toll Free: 1.866.370.2333 Fax: 519.824.9101 www.cattle.guelph.on.ca www.makeitontariobeef.ca @Ontario Beef