2017 ANNUAL REPORT - Beef Farmers of Ontario annual report... · Executive Director’s Report ......
Transcript of 2017 ANNUAL REPORT - Beef Farmers of Ontario annual report... · Executive Director’s Report ......
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2017 Annual Report
2017 ANNUAL REPORT
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Who We Are
Beef Farmers of Ontario (BFO) represents over 19,000 beef farmers in Ontario and is the leading organization in Ontario working with all beef farmers to develop and support landmark achievements that move Ontario’s beef industry
forward sustainably and profitably. BFO is involved in a wide range of issues and initiatives that are important to all stakeholders within Ontario’s beef industry which include industry sustainability, trade, animal health and care,
environment and food safety.
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Message from the President................................................................................................................................4BFO Past Presidents ............................................................................................................................................. 62016 Board of Directors ...................................................................................................................................... 7Executive Director’s Report...................................................................................................................................8BFO Staff..................................................................................................................................................................10
BFO Reports
Government Relations..........................................................................................................................................13Projects In Review..................................................................................................................................................15Research & Innovation..........................................................................................................................................17Committee Reports.............................................................................................................................................26Communications...................................................................................................................................29Ontario Feeder Cattle Loan Guarantee Program.........................................................................................31Ontario Beef Breeder Program.........................................................................................................................33Market Statistics............. .....................................................................................................................................35
Industry In Review
Beef Cattle Research Council...........................................................................................................................50BIO...........................................................................................................................................52Canada Beef ........................................................................................................................................................53Canadian Cattlemen’s Association..................................................................................................................55Canadian Cattle Identification Agency...........................................................................................................58Farm & Food Care ...............................................................................................................................................60National Check-off Agency...............................................................................................................................62Ontario Cattle Feeders’ Association...............................................................................................................63Ontario Beef Cattle Financial Protection Fund..............................................................................................65
BFO Financial Reports
Audited Financial Statements............................................................................................................................682017 Preliminary Budget.....................................................................................................................................81
Table of Contents
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effectiveness of Business Risk Management programs to ensure all farm
sectors have access to similar levels of support to ensure sustainability
and growth can be achieved across commodity industries.
One of Ontario’s premium beef brands, Ontario Corn Fed Beef, was
launched in June of 2001 to expand the market for and profile of Ontario-
produced beef. While this Ontario premium brand continues to grow
and expand in the marketplace, BFO is working towards developing the
next producer-owned brands to ensure that Ontario can meet increasing
consumer demand for locally raised and produced beef. “Brand it Ontario
Beef” is the theme of this year’s AGM program, bringing into focus the
need for more active marketing and promotion of the attributes of Ontario
beef, enhancing consumer confidence in beef production, and supporting
the development of new and existing Ontario beef brands. This regional
marketing strategy for Ontario, led by BFO’s Marketing and Promotions
Committee, is complimentary to the national brand strategy.
The BFO Board of Directors continues to work hard to ensure that
Members of Provincial Parliament (MPPs) and ministry staff understand
that the beef industry is an important economic driver of Ontario’s agri-
food sector, with current farm gate sales of approximately $1 billion,
processing revenue of $3.25 billion, and retail sales of $9 billion per year.
The Ontario beef industry is also a significant job creator in both rural and
urban Ontario, responsible for 11,000 jobs in primary production, 8,000 in
processing, and 42,000 in retail.
BFO is extremely appreciative of the Ontario government’s commitment
to increase the government guarantee under the Feeder Cattle Loan
Guarantee program from $32.5 million to $65 million. This announcement
was made at Queen’s Park in advance of BFO’s 12th Annual Beef
Barbecue hosted on the lawn of the legislature in May 2016. Doubling
the government guarantee will provide farmers access to an additional
$130 million in affordable financing. This much-needed increase will
allow farmers to purchase more cattle, expand their operations, make
new investments and help ensure a sufficient supply of fed cattle for the
industry’s processors. We are awaiting the finalization of the new program
guidelines, which should be available soon.
Recognizing the need to continue to find new ways to expand access
to affordable financing options for beef farmers, BFO also promoted to
MPPs the idea of a government-backed breeder loan guarantee program,
similar to the Ontario Feeder Cattle Loan Guarantee Program.
2016 was a very challenging year for Ontario’s beef
farmers. Following a far too brief interlude of long-
deserved strong prices, the decline in market prices
in all sectors of the industry has created large losses,
especially for our feedlots. In the last ten years, the
beef cow inventory on Ontario farms has declined by
29%. Drought conditions this past summer throughout
many counties and districts in the province, including
our Agriculture Minister’s own riding of Peterborough,
created both short-term and long-term hardships for
beef farmers. In some regions, record dry conditions
were observed during the most critical months for
forage and pasture growth and regrowth, and I have
heard countless stories of dry wells and people hauling
water.
Such a year highlights the need for effective industry
safety net programming, and for using the programs
we do have available, even if we know they are not
perfect. The Beef Farmers of Ontario (BFO) board and
staff continue to pursue enhancements to Ontario’s
Risk Management Program (RMP), which was designed
to allow our farmers to have the confidence to make
investments that will increase local food production,
and retain and grow Ontario jobs. We are also urging
the federal government to improve the fairness and
MESSAGE FROM THE PRESIDENT
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BFO is also working with the Premier and
a number of ministries on the disposition
process for access to Crown land for
agriculture development in Northern Ontario.
This will help progress the implementation
phase of the northern cow herd expansion
project. In the meantime, we are continuing
to develop producer resources in the areas of
financial models, land information, production
tips and best practices, training and education
tools, and videos, all of which appear on the
Beef North website.
I was pleased to accept the invitation to
make a presentation in February 2016 to the
Standing Senate Committee on Agriculture
and Forestry, contributing to its study of
international market access priorities for the
Canadian agricultural and agri-food sector. In
July, I was in Calgary for the Federal-Provincial-
Territorial (FPT) Agriculture Ministers meeting,
out of which came a statement that FPT
governments recognize that flexibility across
Canada and collaboration with industry have
enabled FPT governments to meet diverse
regional needs while supporting common
national outcomes. Governments recognizing
regional differences in our industry is key to
the viability of Ontario’s beef industry.
Last summer I also participated in a Northern
Ontario Strategic Plan meeting and spoke to
the Northern Policy Institute, an independent
think tank that works to identify policy
opportunities to support the growth of
sustainable Northern Ontario communities.
With our expansion initiatives top of mind,
government and community officials are
looking for ways we can collaborate to build a
stronger economy for Northern Ontario.
I believe our board has demonstrated tremendous tenacity on behalf of Ontario’s beef farmers
to ensure that the programming and initiatives we have been working on are understood,
valued, maintained and enhanced. With your help, and that of the hardworking directors
and staff at BFO, I truly believe we will have more triumphs by this time next year. I welcome
conversations any time that will help us move Ontario’s beef industry forward. Thank you.
Matt Bowman BFO President
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1963 Bruce Mehlenbacher, Haldimand
1964 Ross Beattie, Simcoe
1965 George Morris, Kent
1966 Harvey Ackert, Bruce
1967 - 1968 Walter Beath, Ontario County
1969 Vern Kaufman, Oxford
1970 Lawrence Markusse, Lambton
1971 Hugh Grace, Lanark
1972 Tom Jackson, Peel-Halton
1973 Stewart Brown, Elgin
1974 Grant Burroughes, York
1975 Clarence Hardy, Middlesex
1976 Ronald Oswald, Bruce
1977 Archie Etherington, Huron
1978 Alex Connell, Wellington
1979 - 1980 Morley Shepherdson, Temiskaming
1981 Gus Lask, Ontario County
1982 Tony Noorloos, Lambton
1983 Robert Chapple, Kent
1984 - 1985 Gerhard Schickedanz, York
1986 Edgar Wideman, Waterloo
1987 Hugh Sharpe, Lennox and Addington
1988 Robert Gregson, Elgin
1989 Jim Magee, Oxford
1990 David Whittington, Peterborough
1991 Glenn Coultes, Huron
1992 Doug Gear, Dufferin
1993 Robert Kerr, Kent
1994 Ken Summers, Victoria
1995 Harvey Graham, Durham East
1996 Dale Pallister, Grey
1997 Linda Barker, Haldimand
1998 Bob Dobson, Renfrew
1999 Darlene Bowen, Temiskaming
2000 Stan Eby, Bruce
2001 Dick van der Byl, Glengarry
2002 Mike Buis, Kent
2003 - 2004 Ron Wooddisse, Wellington
2005 - 2007 Ian McKillop, Elgin
2008 - 2009 Gord Hardy, Middlesex
2010 - 2011 Curtis Royal, Simcoe
2012 - 2013 Dan Darling, Northumberland
2014 - 2015 Bob Gordanier, Dufferin
BFO PAST PRESIDENTS
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MATT BOWMAN PresidentNorthern DirectorThornloe, ON
CCA Director
JOE HILLVice President Feedlot DirectorFergus, ON
CCA Director
ROB LIPSETT Backgrounder DirectorAnnan, ON
CCA Director
TOM WILSONFeedlot DirectorCorunna, ON
CCA Director
CORY VAN GRONINGEN Southern DirectorCayuga, ON
TIM FUGARDDirector At-LargePetrolia, ON
JASON REID Cow-Calf DirectorThunder Bay, ON
DAVE CAVANAGH Cow-Calf DirectorEnnismore, ON
GARNET TOMSEastern DirectorDouro-Dummer, ON
GERALD ROLLINS Cow-Calf DirectorCobden, ON
JACK CHAFFE Feedlot DirectorMitchell, ON
KIM SYTSMA Director At-Large Athens, ON
2016 BOARD OF DIRECTORS
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At the same time, BFO, through its stable funding agreement with the
Ontario Cattle Feeders’ Association will continue to provide long-term
support to Ontario Corn Fed Beef (OCFB) in excess of $400,000 per
year. Your board is dedicating more than a million dollars a year to one
highly successful brand, and to trying to set the stage for another one,
two, or three brands which can grow and thrive in the Ontario and export
marketplace. Think of where we would be now in Ontario if we did not
have OCFB. Think of where we can be in the next decade if OCFB
continues to grow, and we have another brand or two which are equally
successful.
This is a big investment, and you should be proud that your board had the
vision to recognize the opportunity, and the courage to try to make that
vision a reality.
You have to agree that one of the major accomplishments of the past
few years has been maintaining the Risk Management Program (RMP).
Presidents Gord Hardy, Curtis Royal, Dan Darling, Bob Gordanier, and
Matt Bowman have been vigorous proponents and defenders of this
Business Risk Management (BRM) program. Every year, with the province
working to balance its budget, all programs are reviewed. I know the
allocation is not enough to offset last year’s hurt, but having this program
is so important for our industry. Your board knows this and expends every
possible effort in its defense.
Together with our Ontario Agriculture Sustainability Coalition partners and
OMAFRA, we focused a lot of effort in 2016 to look at design changes to
RMP so that it could be more likely to attract federal funds. So far we have
not settled on any changes to achieve that objective. This program is the
single program for beef which works to address risk. Ok, it needs more
funding and federal participation. Even so, if you aren’t in it, why not?
I am expecting that we will drain both years of accumulated premiums
from the RMP Premium Fund for beef, and that those monies will flow in
early June of this year.
OMAFRA has formed a committee with dedicated staff to promote livestock
farming in the Greater Clay Belt, and some work, such as soil mapping
and sampling has taken place. There have been consultations with First
Nations and the municipalities. Achieving this has been embedded in the
mandate letter for Minister Leal and cooperating in achieving it is part of
the mandate of all ministries which it touches. This project is finally about
to reach the top of the hill, and begin to roll down the gentle slope on the
other side toward reality.
I am really looking forward to this coming year, as
projects that have required so much work, like the
northern expansion and the Elora Research Station
cow barn, begin to break ground.
Another project I am very proud of began in a modest
way in the fall of 2016, but will, I think, have the potential
to change the Ontario industry for the better. That is
the Regional Marketing Initiative (RMI). Our Annual
Meeting theme this year is, “Brand it Ontario Beef.”
When reviewing our strategic plan back in 2011, the
board set three primary objectives:
1. Premium market and value chain development
2. Re-align relationships and financial resources
for greater impact
3. Develop industry leadership
As you can see from the preliminary budget in this
report, the RMI is a three year commitment of about
$600,000 per year. This money is coming from
reserves, which is not sustainable over the long run but
is certainly a prudent use of your dollars in the short
term.
EXECUTIVE DIRECTOR’S REPORT
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Your board is committed to making this industry stronger and more resilient. They all farm
and understand this industry. They deserve your support and cooperation. Feel free to call
them and talk to them about ideas to improve what we are doing for all.
Finally, I would like to thank my tremendous staff, who make all things possible.
As the northern expansion takes wing, we are
also committed to promoting an expanded
cow herd in Southern Ontario. Along with
directors Garnet, Dave and Kim, I attended a
producer meeting in Perth with the Eastern
Ontario cow herd expansion group. There
were seven or eight counties represented, and
we had a good general exchange on where
this all stood. One point that was expressed
is that they want an end goal in terms of how
many cows we want. They want to make sure
expansion doesn’t drop the price of calves.
Ideas expressed included:
• Change the tax rate on recreational land
and small parcels to keep them available
for agriculture.
• Use an incentive program for species at
risk to generate some income, but allow
fall grazing on that land.
• Investigate grazing Conservation Area
grasslands.
• Investigate re-establishing ARDA.
• Promote Eastern Ontario to farmers in
Southwestern Ontario wanting to expand
detailing the difference in land values.
• Improve BRM programs so young and
expanding farmers have coverage over
a longer-term horizon. The backstop
program should only allow losses of up
to 5% equity in any one year.
• Enhance trade policy so borders can’t be
shut, or so they have an orderly process
for re-opening.
• Promote the Ontario government’s
program for local sourcing for institutions.
• BFO should provide an introductory
listing service to try to match retiring
farmers who want their farms to continue
to be farmed, with young farmers who
want to take over an existing operation.
David S. StewartBFO Executive Director
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BFO STAFF
DAVE STEWART Executive Director x [email protected]
CATHY GOLUBIENKO Executive Assistant x [email protected]
JACKIE PIERCE Office Manager x [email protected]
KATHERINE FOXPolicy Advisor x 236 [email protected]
RICHARD HORNE Manager of Policy and Issues x [email protected]
MICHAEL CAMPBELL Policy Advisor x [email protected]
AMBER MCINTYREAccountant x 222 [email protected]
BETHANY STOREYCommunications Coordinator x [email protected]
LEAANNE WUERMLI Communications Manager x [email protected]
JAMIE GAMBLE Market Information Coordinator x [email protected]
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DAN FERGUSON Manager of Producer Relations [email protected]
ANDY MILLAR Check-off Inspector [email protected]
CHRIS ATTEMABFO Contract Employee Water Quality Specialist [email protected]
CHERYL RUSSWURM Provincial Supervisor: Ontario Feeder & Breeder Co-op Programs [email protected]
CATHY LASBY BFO Contract Employee Ontario Beef Advertising Manager [email protected]
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As long-term partners with
the environment, more than 70
percent of Ontario farmers have taken
an environmental course, evaluated
their farm’s environmental
footprint, and made improvements to
protect soil, water and ecosystems.
Gerrit Pelleboer & Sally Smith Pelleboer and Family
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GOVERNMENT RELATIONS
This year has been exceptionally busy on the policy formulation side,
responding to government proposals on regulation changes on a broad
array of topics. In 2016, BFO directors and staff researched, considered,
debated and crafted responses on the following topics:
This level of “consultation” has not been experienced at BFO in quite
some time, and it strains the organization’s resources to try to represent
members on such a range of complex issues.
In addition to these positions, BFO’s government relations activities
included our cornerstone Queen’s Park Barbecue held on the lawn of the
provincial legislature in May. This event continues to be a premier event
in terms of exposure and “door-opening” ability.
We firmly believe that a sufficiently funded RMP program provides the most important and market responsive risk management option for Ontario beef farmers, above all others.
• Antimicrobial Resistance
• Feed Regulations
• Livestock Transport
• Ontario’s 2017 Budget
• Yield-based Forage Production
Insurance
• Carbon Offset Credits
• The Low-Carbon Economy Act
• Cap and Trade
• Energy and Water Reporting
Proposal
• Environmental Bill of Rights
Review
• Reducing Phosphorus to Minimize
Algal Blooms in Lake Erie
• Soil Health and Conservation
Strategy
• Ground Current Pollution Act
• Irradiation of Ground Beef
• Coloured Fuel
• Tri-national Agricultural
Accord
• Trans-Pacific Partnership
• Niagara Escarpment Plan
• Greenbelt Plan
• Growth Plan for the Greater
Golden Horseshoe
• Oak Ridges Moraine
Conservation Plan
• Northern Growth Strategy
• Traceability
• Algonquin Wolf Trapping
and Hunting Ban
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This year provided a great example of
the need to continue to promote and
advocate for increased funding support for
the RMP program. We firmly believe that a
sufficiently funded RMP program provides
the most important and market-responsive
risk management option for Ontario beef
farmers, above all others. Along with our
livestock partners at OASC, BFO has been
active at Queen’s Park, in stressing the need
for this important program to continue. The
government has understood our position
on this important file, and we have been
successful in defending the RMP in a time of
relative budget austerity. At the same time,
we are investigating with OMAFRA, ways
of repositioning this program so that it can
attract federal funding beginning in the Next
Policy Framework in 2018.
In May, the provincial government announced
a doubling of the provincial government
guarantee ($32.5 to $65 million) under the
Feeder Cattle Loan Guarantee Program.
This guarantee allows up to $260 million
in financing to the 17 co-operatives across
the province. This increase was in response
to BFO’s request for liquidity to support the
feeding segment of Ontario’s beef industry,
and is greatly appreciated.
As you can see from the resolutions at
this AGM, the increase is tied to language
which we would preferred to have changed.
Following direction from the voting delegates,
BFO will continue to work with the Feeder
Finance Committee to resolve these issues.
2016 was a very challenging year for beef
farmers, who experienced wide-spread
drought conditions in the summer and
declining returns from the marketplace. In
order to ensure that Ontario’s beef industry
could at least maintain its current size, BFO
made two specific requests to Minister Leal,
in the fall, in response to the drought and
decline in beef prices. BFO recommended
that the Ontario government immediately
initiate a drought disaster support program
for livestock farmers affected by the 2016
drought. We requested that a per-head
payment to farmers be made to help cover
a portion of feed costs required to maintain
herds throughout the winter months.
At the same time, BFO also recommended
that a beef market disaster relief top-up to
the RMP program be implemented for the
2016 program year, as cumulative losses
approached $250 million. Both requests
were backed up by solid analysis and thought.
Neither request has been accepted.
In November, Minister MacAulay announced a
Livestock Tax Deferral provision for livestock
farmers in Ontario, Quebec and Alberta. The
provision allows livestock farmers to defer
a portion of their 2016 sale proceeds of
breeding livestock until the next year.
While the ability to defer a portion of
breeding stock sales will provide some
level of assistance to producers in drought
stricken areas, we know it will not sufficiently
address or mitigate the impacts of drought for
producers in the hardest hit areas. As well,
critical areas with significant drought damage
such as Haldimand and Norfolk counties are
excluded from the provision. BFO is working
with CCA and OMAFRA to have the listing of
designated regions expanded to ensure all
drought-affected areas are eligible.
We continue to work with the government
across ministries to explore ways to move
more livestock to the north and expand herd
size in Ontario. The initiative was written into
both OMAFRA and MNRF’s mandate letters.
We have been assured that early in 2017 we
will receive a detailed update on progress to
date and next steps. We remain convinced,
and continue to point out to the government,
the unique opportunities that present
themselves on Northern Ontario lands while
appreciating the challenges and the need to
address many complex issues.
BFO directors and staff travelled to Ottawa
on a number of occasions throughout the
year to meet with key Ontario MPs and staff
in Agriculture Minister Lawrence MacAulay’s
office. During these meetings we highlighted
the following requests:
• Federal research funding for the
University of Guelph’s beef research barn
in Elora, which would help strengthen
livestock research capacity in the country.
• Federal participation in the Ontario
Feeder Cattle Loan Guarantee Program,
which would benefit all feeder finance
programs across Canada.
• Federal government-backed breeder
loan guarantee program, similar to the
Ontario Feeder Cattle Loan Guarantee
Program.
• Reinvestment in BRM programming with
the flexibility for provinces to design and
implement programs that meet diverse
regional needs.
• Equivalent consideration for the beef
sector, as others have been provided,
regarding transitional investment to
compete under the Canada-European
Union Comprehensive Economic and
Trade Agreement.
We continue to provide a credible and hard-
working approach to advocating on your
behalf.
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Through our joint partnership with OAFB, we have distributed 26,000 lbs of fresh ground beef to more than 120 food banks across the province and helped 145,493 Ontarians in need.
Cow Herd Expansion
Cow herd expansion efforts continue to be a priority for BFO, although
the recent market decline has hindered some producers’ confidence to
expand. BFO representatives continue to promote the concept of cow herd
expansion in Northern Ontario with government, with the goal of securing
access to Crown land for agricultural development. In addition to the lobby
for suitable land, BFO was successful in obtaining funding support through
Growing Forward 2 to assist with implementation strategies that include
producer/stakeholder engagement and communications, developing
resources, and mentorship training and support.
To complement BFO’s efforts to rebuild and expand the cow herd in
Northern Ontario, consultations continue across Southern and Eastern
Ontario to discuss and identify ways to expand the cow herd in southern
regions of the province. Through these discussions a number of priority
areas have been identified, such as financial assistance for fencing,
improving the breeder finance program and the potential of cover crop
grazing.
Partnership with the Ontario Association of Food Banks
In 2016, BFO committed $40,000 in financial support to continue its
partnership with the Ontario Association of Food Banks (OAFB). Since
the inception of the beef program, announced in 2014, BFO and OAFB
have provided 80,000 servings of fresh ground beef for Ontario families
in need.
BFO’s support for local food banks is directed towards the purchase of
fresh beef products from Ontario’s farmers and is leveraged for matching
funds from industry partners. Through our joint partnership with OAFB, we
have distributed 26,000 lbs of fresh ground beef to more than 120 food
banks across the province and helped 145,493 Ontarians in need.
PROJECTS IN REVIEW
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consumer, the model provides a convenient way
to source local beef products and it provides an
opportunity for meaningful dialogue and feedback
with the farmer.
To help farmers decide if the Farm to City model might
be a fit for their farm businesses, BFO developed a
handbook to provide an outline of the model, the
capabilities of the online store, a case study, and
important considerations such as transportation and
storage requirements, production planning, and
insurance.
BUILD Leadership Development Program
Since BFO’s BUILD Leadership Development program
was launched over five years ago, 75 participants
have been trained through the program with the
help of the Rural Ontario Institute. BFO invested in
the development of this program to provide industry
leaders with the knowledge and confidence to excel,
and to provide stronger leadership capabilities for
the entire organization. BFO offered the program in
2016 for 10 participants, and is currently accepting
applications for the next BUILD course in 2017.
OAFB works hard to ensure local food banks can provide well-balanced
and healthy food hampers to their clients, which include fresh fruits and
vegetables, fresh milk, and ground meat. Donations to OAFB, like BFO’s,
enable children and adults living with hunger to have access to healthy
protein, alongside fresh and non-perishable food staples, throughout the
year.
Animal Care Resources
Over the last several years, as an industry, we have witnessed growing
concerns by the public, government, veterinarians and farmers on how
animals are raised and cared for. Farmers and industry partners have
been quite active in addressing the increased attention and proving
their willingness to better understand animal behaviour and make
improvements on farm if required.
To support these efforts, BFO has developed Animal Care Code of Conduct
resources for farmers, auction markets and processors. The intent of the
voluntary documents is to help protect the welfare of animals and outline
the obligations of employees and visitors to abide by federal and provincial
law and the Code of Practice for the Care and Handling of Beef Cattle, as
well as report any incidences of mistreatment or abuse. Having an Animal
Care Code of Conduct in place also acts as a reminder from the owner to
staff and visitors about the importance that the operation places on animal
care, and as proof that the operation does not tolerate any mistreatment
of animals. Two user-friendly resources, a Code of Conduct for employees
and a Code of Conduct for visitors, have been prepared and are available
free of charge to BFO members.
Marketing from Farm to City
With the goal of capitalizing on the current market demand for locally
produced food, BFO accessed funding through Growing Forward 2 to
research and implement a direct-to-consumer business model, coined the
Farm to City project, for beef farmers looking to conveniently connect with
urban consumers who are in search of locally sourced protein.
To bridge the gap between farmers, processors and urban customers,
the model allows consumers to order and pay for local beef products in
advance through a secure website (created and supported by BIO), and the
farmer maintains a regular scheduled drop site location where consumers
can pick up their orders. A major benefit of this business model for the
farmer is the ability to plan production and create time-saving efficiencies.
With a pre-order system, the farmer will know in advance what cuts and
quantity to prepare, package and deliver, including profit details. For the
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BFO held two calls for research proposals under the beef research program, for the purpose of directing funding toward research projects addressing key priorities for the Ontario beef sector.
RESEARCH AND INNOVATION
The goal of the BFO beef research program is to increase the development,
adaptation, assessment and easy adoption of on-farm technologies that
help beef farmers respond to changing demands, and to quantify and
investigate emerging issues of importance to the Ontario and broader
Canadian beef industry. BFO held two calls for research proposals under
the beef research program, one in late 2016 and a second in early 2017,
for the purpose of directing funding toward research projects addressing
key priorities for the Ontario beef sector.
Total BFO research program project funding has been set at a maximum
$200,000 per year for all projects, subject to available BFO funding, with
projects to be completed by December 31, 2018.
Project proposals funded by BFO must fit within one or more of the
outcomes identified under the 10 overarching beef research themes
outlined in the BFO Research Investment Strategy 2014-2020. However,
for the purposes of the 2016-17 research calls, preference is being given
to project proposals that align with one or more of the following priority
issues, listed in no particular order:
• Alternative feeds/cost-benefit analysis of alternative feeds
• Cow productivity
• Evaluation of phosphorus risks for the Ontario beef industry under
different management systems
• Alternatives to growth promotants
• Social value of the beef industry in Ontario. Quantification of the value
that cattle bring to the rural Ontario landscape
BFO’s first call for proposals committed $127,054 toward research projects
in 2017, and $142,179 in 2018. Funding commitments for the second
research call are expected to be made in March 2017.
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Agriculture is the backbone of many rural communities. Ontario beef represents farm gate sales revenue of almost $1 billion, and is responsible for 11,000 jobs in primary production, 8,000 jobs in processing, and almost 42,000 jobs in retail.
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The following projects have received funding from BFO’s 2016 call for proposals:
Investigation of alternatives to ionophore/antibiotic management
strategies in finishing cattle
Dr. Benjamin Bohrer (University of Guelph)
Finishing beef cattle are commonly fed ionophores (monensin, lasalocid)
to control and prevent coccidiosis and ruminal acidosis by altering rumen
fermentation. Finishing beef cattle are often fed antibiotics, specifically
tylosin phosphate, to reduce the incidences of liver abscesses. Although
not termed as growth promotants, feeding the combination of ionophores
and antibiotics to conventionally finished cattle improves feed efficiency
and weight gain through their actions on rumen microbial fermentation
(DiLorenzo, 2011; Hersom and Thrift, 2012). It has been proposed that
the advantages in feed efficiency and weight gain of cattle that are fed
the combination of ionophores and antibiotics are an indirect effect of
cattle having improved overall health. Even though the combination
of ionophores and antibiotics has been an effective approach to raise
efficient and healthy cattle, Canadian beef producers are being challenged
to produce beef from cattle that are not fed ionophores and antibiotics.
An alternative approach to feeding cattle the combination of ionophores
and antibiotics could be to replace them with a combination of essential
oils and organic acids. Essential oils are plant-derived compounds that
typically exert antimicrobial effects leading to altered rumen fermentation
profiles, thus mirroring the mode of action of ionophores (DiLorenzo,
2011). Organic acids have antimicrobial effects by suppressing fungal
activity and maintaining an acidic environment in the rumen (Castillo et
al., 2004). Internal testing by DSM Nutritional Products (Parsippany, NJ)
has helped develop proprietary blends of essential oils (thymol, eugenol,
vanillin, guaiacol and limonene) and extensively test organic acids with
the focus of producing alternatives to antibiotics. In addition to testing the
effects of essential oils and organic acids on live performance and carcass
characteristics, these products may have an effect on colour stability and
lipid oxidation of beef. This is important as consumers associate beef
quality and freshness when beef cuts in the meat case are cherry red in
colour. Since many consumers avoid packages of beef where any part of
the lean is discolored, retailers are then forced to discount the meat. Thus,
testing of shelf life is necessary and will help fill a research gap.
Objectives are to investigate the effects of replacing monensin and tylosin
with alternatives (essential oil blend and benzoic acid; DSM Nutritional
Products) on feedlot performance, carcass characteristics and meat
quality.Windover Family
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Assessing colostrum quality and passive
transfer using a vaccine challenge in cows
fed differing levels of dietary protein with or
without supplemental methionine
Dr. Katie Wood (University of Guelph)
In the cow-calf industry, minimizing calf
morbidity and mortality is key to maximizing
growth and performance of the calf crop
until weaning. Ensuring each calf receives
an adequate dose of high quality colostrum
greatly reduces the morbidity of the neonatal
calf, and contributes to a lasting positive
health impact in the feedlot. Methionine is
an essential amino acid known to play an
important role in protein synthesis, oxidative
stress, and a variety of metabolic pathways.
Methionine is known to be the first limiting
amino acid in forage-fed beef cows, and
therefore it is likely that providing an additional
dietary source may be beneficial for the
cow. However, it is not clear if supplemental
methionine will elicit a positive response
on colostrum quality. During late gestation,
amino acid and protein requirements increase
in order to support growth and development
of the fetus. However, if nutrients are limiting
during this time, impacts may be seen on
maternal muscle degradation, and possible
further impacts on colostrum production and
fetal growth. Therefore, understanding the
role of pre-partum protein supplementation
and the role of methionine may have positive
implications for improving passive transfer
of immunoglobulins to the calf, with lasting
implications for overall calf health and
performance.
Therefore, the objectives of this experiment
are to evaluate colostrum quality and passive
transfer using a vaccine challenge model
in beef cows fed varying dietary crude
protein levels pre-partum with or without
supplemental rumen-protected methionine.
Management strategies to reduce weaning
stress, and improve the health and
productivity of newly weaned calves
Dr. Derek Haley (University of Guelph)
The purpose of this project is to help
determine the value of two-stage weaning as
a viable and sustainable alternative to the
conventional method of weaning beef cattle. It
will test a refinement of the two-stage method
designed to enhance calf performance and
productivity in the feedlot. This project will also
assist in establishing whether the reduction in
the behavioural signs of distress that are seen
with two-stage weaning translates into fewer
health problems that are so commonly seen
among newly weaned calves, which could
reduce our use of antibiotics.
Specifically, this project will: (1) test a
refinement of the two-stage weaning method
by modifying the nutritional management
of the calves, to immediately allow them to
compensate for the loss of milk in their diet,
(2) compare the post-weaning intake of calves
weaned by different methods, and (3) for the
first time, track the health and productivity
performance of calves weaned in two stages
through the background feeding phases,
and compare them to calves weaned by the
conventional method.
This project will also (1) deliver guidelines for
beef producers about how to maximize the
benefits of alternative weaning strategies, (2)
improve our understanding of how different
weaning methods affect the appetite and
feeding behaviour of calves and weight
gain during and after weaning, (3) provide
evidence about the role of the weaning
method itself on calf health post weaning, and
(4) provide results of a direct test of whether
the behavioural response to weaning is
associated with health outcomes of calves in
the weeks following weaning.
Identification of transmission ratio
distortion regions on the beef cattle
genome and their association to bull and
cow fertility
Dr. Angela Canovas (University of Guelph)
Although feed costs are a major factor
influencing the profitability of beef production,
successful reproduction in the cow-calf sector
is a primary driver affecting profitability. The
number and percentage of cows successfully
bred during the breeding season is a major
factor influencing the profitability of the cow-
calf operation. Bull fertility plays a key role
in the success of calf production. Identifying
bulls with superior fertility and with superior
feed efficiency could significantly affect
cow-calf production efficiency. However, it
is important to understand the relationships
between fertility and feed efficiency to avoid
undesirable consequences of selection for
a single trait, as the beef cattle industry is
beginning to more aggressively select animals
for improved feed efficiency.
The main objective of the project is to discover
new regions of the genome and the genes
located in them that affect reproduction.
These new genome signals or regions will be
called “trans-mission ratio distortion (TRD)” in
the proposed project. TRD occurs when one
of the two alleles from a heterozygous locus is
preferentially transmitted to the progeny. This
phenomenon typically causes a departure of
the expected Mendelian inheritance ratios
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in the offspring. TRD has been reported in a
broad range of organisms including plants,
insects, fish, birds and mammals. However,
little is known of its effects on livestock
species. Several biological mechanisms
can cause TRD, including the preferential
transmission of one of the two alleles carried
by a hetero-zygote parent to the zygote at
the time of fertilization, also known as meiotic
drive, as well as embryo or fetal failure or
differential viability during early neonatal life
under a given genotype.
In this study, the analysis of TRD will be used
to discover new regions of the genome and
the genes located in those regions that may
have an effect on reproduction. Such regions,
if they affect male and female fertility through
embryonic or early calf mortality, are expected
to change the distribution of genotypes
among progeny in relation to the genotypes
of the parents. Once TRD regions have been
identified, their phenotypic effects will be
analyzed integrating structural and functional
genomic data through associations using the
new bovine genome assembly ARS-UCD1.0
that is currently being developed with fertility
phenotypes or genetic evaluations (e.g., sire
conception rate, non-return rate and semen
quality traits) and functional studies (gene
ontology and biological pathways analysis).
In addition, the association between SNP
located in the genes with TRD and feed
efficiency traits will also be examined in order
to study possible correlation between feed
efficiency traits and fertility in young beef bulls.
The proposed project will identify genomic
regions with TRD as well as the key regulator
genes and functional SNP affecting fertility
and reproduction in different beef cattle
breeds and its correlation with feed efficiency
in young bulls. In order to identify the causal
mutations, further validation of the most
promising genes found will be investigated
sequencing two groups of animals with
extreme phenotypes (fertility traits).
Partner Project: Genetic pooling for
sustainable beef
Dr. Angela Canovas (University of
Guelph), Dr. Steve Miller (American Angus
Association), and Dr. Ricardo Ventura and
Dr. Gord Vander Voort (BIO)
In 2016, BFO partnered with BIO to secure
project funding through Growing Forward
2 to help the beef industry produce better
yielding and highly marbled carcasses. In the
past decade, there has been a shift toward
more highly marbled carcasses. In fact, 48%
of carcasses graded AAA in 2005 versus 64%
in 2015. This has been achieved, however,
through fatter carcasses that are much bigger
and have lower yield (66% of carcasses
graded YG1 in 2005 versus 41% in 2015). A
recent estimate puts the cost of this problem
at close to $100 million in wasted feed for the
Canadian beef industry. The good news is
there are animals that can meet high yield and
high marbling, but we need to identify those
genetics. This research project will investigate
the use of “pooled” samples of DNA which will
allow researchers to find particular genetics
that result in both yield and marbling. By
understanding these genetics, industry will be
able to identify potential herd sires carrying
those genetics and make use of them for
future generations of animals.
This project was funded in part through Growing Forward 2 (GF2), a federal-provincial-territorial initiative. The Agricultural Adaptation Council assists in the delivery of GF2 in Ontario.
Projects receiving BFO funding in 2016
Cross jurisdictional scan of options for
Crown land disposition in Canada with
implications for agriculture in the Ontario
Clay Belt
Dr. Predrag Rajsic (University of Guelph)
This project will look at the relevant laws,
regulations, policies and customary practices
governing disposition of Crown land in
Ontario.
An assessment of the existing literature,
including federal and provincial acts and
regulations, municipal bylaws and/or other
relevant policies will be conducted. Review of
relevant economic literature may inform this
research. This may include library and online
searches, and interviews with relevant experts.
The assessment of literature will be structured
around four research questions. An example
of an assessment of Canadian environmental
regulations affecting Canadian livestock farms
is provided by Rajsic et al. (2012). This work
identifies elements of relevant regulations
that may have implications on agricultural
trade. A similar approach would be relevant
for identifying factors affecting potential
exchange of agricultural land.
This project was funded in part through Growing Forward 2 (GF2), a federal-provincial-territorial initiative. The Agricultural Adaptation Council assists in the delivery of GF2 in Ontario.
Enhanced bull evaluation: desirable
reproductive capacity and improved feed
efficiency
Dr. Yuri Montanholi (Dalhousie University)
This project aims to address the need to
identify bulls that are feed efficient but
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also exhibit desirable sexual developing
and reproductive capacity. This will be
accomplished by addressing the following
objectives:
1. Optimize advanced reproductive
assessments on young bulls, taking
in consideration feed efficiency and
focused on the development of protocols
for application in bull test stations.
2. Access the digestive function (via rumen
parameters) in beef bulls with known
feed efficiency and identify practical
parameters to alleviate chronic sickness
states and maximize productivity.
3. Advance the indirect assessment of feed
efficiency based on metabolic profile
and genomic cluster analysis, to enable
the pre-scanning for feed efficiency
that may result in the reduction of the
performance-test period (112d) currently
employed in the beef industry.
Stimulating innate immune reponses to
prevent pneumonia in beef cattle
Jeff Caswell (University of Guelph)
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 disease and
reduce the current reliance on preventative
antibiotic use in beef production.
Thunder Bay and area food and agricultural
market study
This project will research the characteristics
and dynamics of the Thunder Bay area’s
food economy. Researchers will map six
areas of demand for food – the raw product
sector, food processors, the prepared food
sector, farm to table, food programs, and
popular consumption. Through this process
researchers will identify key points of
information, such as total demand of local food
relative to food in general, critical price points,
tastes and preferences of different actors,
gross volume requirements, and factors
determining overall patterns of consumption.
Cross-seeding forages
Christine O’Reilly (Rural Agri-Innovation
Network) & Dr. Tarlok Sahato (Thunder Bay
Agriculture Research Station)
Cross-seeding (also called cross-drilling) is a
technique for establishing a forage crop where
half the seed is planted in a conventional
drive pattern using a seed drill. The other half
of the seed is drilled at a 45 degree angle to
the original pass in order to achieve better
ground coverage. Better coverage can help
reduce soil erosion and assist sown forage
crops out-compete weeds, resulting in better
quality and higher yielding forage crops.
The Cross-seeding Forages Project aims to
determine if cross-seeding is an economically
viable practice for establishing/rejuvenating
pasture and hay crops in Northern Ontario.
The project would span three years in order
to collect, analyze and share information from
two growing seasons.
Effects of RFI classification and strategic
supplementation of low quality diets to
optimize beef cow performance
Dr. Ira Mandell (University of Guelph)
The goal of this trial is to investigate specific
nutritional management programs and how
specific genetics perform when nutrients are
limiting. This will include assessing growth
performance, body condition, reproductive
performance and calf production. This project
will demonstrate how specific genetics
perform across diverse nutritional regimens,
and how strategic supplementation of low-
quality diets can be used to lower costs of
production for Ontario cow-calf producers.
Ongoing Projects
Evaluating the impact of water quality for
finishing beef cattle
Dr. Ira Mandell (University of Guelph)
The project will evaluate the effects of water
quality on growth performance, carcass
characteristic and methane production for
finishing beef cattle. Two water treatment
systems will be used to improve the water
quality of well water for an established beef
research facility. One of the water treatment
systems will be a low-cost system that utilizes
ultraviolet rays to kill microorganisms in water.
This system is venturi based, used to remove
iron and sulfates. The second water treatment
system is a state-of-the-art system that is
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based on reverse osmosis, which claims to
dramatically reduce total dissolved solids
and biofilms as compared to untreated water
without the use of chemicals such as chlorine.
Over two years, 196 head of cattle will be used
to evaluate the effects of water treatment on
growth performance (gains, feed intake, feed
conversion), carcass characteristics (carcass
weight, backfat deposition, muscling, lean
yield, marbling, carcass grade) and beef
quality, including tenderness.
In addition, the project will also examine how
water quality may affect the environment
through the production of methane and
volatile organic compounds including sulfur,
volatile fatty acids, phenols and indoles.
Odors from livestock operations are not
only an environmental concern, but are a
threat to the viability of livestock operations
in close proximity to residential housing
developments.
The high purchase and feeding costs of cattle
necessitates an examination of production
methods that can reduce costs of production.
Incorporation of water treatment systems
in finishing operations may significantly
improve animal health, feed intake and
feed conversion, which would lower overall
costs of production and increase financial
returns. Since sulfur-containing compounds
in manure are one of the most volatile organic
compounds, effective removal of sulfates via
water treatment could significantly affect odor
emissions from livestock operations. This
is important as odor nuisance or obnoxious
odors are considered a major complaint from
the public regarding air pollution.
While we are aware that the technology has
been used to improve water quality in Ontario,
the technology has not been used for beef
cattle production. Furthermore, no refereed
or third party publications documenting
animal performance using the treated water
has been conducted to date.
Government Business Risk Management
(BRM) program participation and the
threshold effects of repayment on farm
survival
Dr. Alfons Weersink (University of Guelph)
Many Business Risk Management (BRM)
programs, such as AgriStability and
AgriInsurance, are available to farm operators
as instruments to protect themselves from
income fluctuations. Yet, participation in these
programs by Ontario farmers has been low and
falling over the years. In order to find out why,
this project will investigate: (1) how farmers
value the programs as risk management
instruments and behaviourally choose to enrol
in/withdraw from the programs as responses to
their dynamic financial streams and business
status over years; (2) the effectiveness of the
BRM programs in income-smoothing and
the role they played in shaping business
strategies of Ontario farmers in the long
run. This project involves using the Ontario
Farm Income Database from 2003-2012 and
farmer field experiments to conduct analysis
on BRM program adoption and effiency. The
“break-even” conditions at which the cost
of program premiums equals their payouts
will be assessed via simulation model. The
study provides the industry operations with a
deeper understanding on how BRM programs
affect business performance in Ontario.
The study will also shed light on how BRM
program settings can generate variations in
the participation decision and the program
efficiency among relevant farms.
Pasture mixtures of grasses and legumes
for the long-term sustainability of beef
production
Dr. Carol Lafreniere (Université du Québec
en Abitibi-Témiscamingue)
The objective of this project is to develop
simple and complex forage mixtures for long-
term and low-cost beef grazing management
systems. This research will help agronomists
and beef producers choose species mixtures
suitable for the environment and management
systems in which they will be grown.
The project focuses on long-term productivity
for single and multi-species mixtures as part
of a larger project funded through the BCRC
science cluster with the same scientific team.
The project will offer a unique opportunity
to assess grazing management in different
environments with one site in Northern
Ontario (New Liskeard) where cow-calf
production is important.
The impact of genomic selection for
feed efficiency on the cow-calf sector,
performance parameters and underlying
biology
Dr. Steve Miller (University of Guelph)
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 efficiency.
The objectives are to investigate how beef
cows differ in performance (size, intake,
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Elliott and Rebecca Miller
Improvements in genetics, technology, traceability and research have been driven by
farmers and their willingness to innovate.
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fertility, 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. These include
assessment of metabolic rate through indirect calorimetry, which is the
gold standard methodology for studying feed efficiency. In addition, blood
samples will be collected hourly during the calorimetry assessment to
further study the association of blood metabolites and hormones over
continuous 24 hours. Fecal samples will be collected for further studies on
fecal cortisol metabolites as a predictor of feed efficiency. Muscle and liver
biopsies will be harvested to study the metabolic rate of these tissues,
which are important energy sinks affecting feed efficiency. Rumen fluid
will be collected, immune status of dams and calves will be determined,
and behavioral measures will be taken to determine relationships with
efficiency. This project will also utilize the University of Guelph research
herd where individual cow feed intake, along with steer intake has been
recorded in the database for over 20 years. This complete dataset,
including pedigree and performance information, allows the important
relationship between efficiency in the feedlot and performance in beef
females to be evaluated in more detail. Relationships between efficiency
in the feedlot and cow performance including calf weight, fertility, intake,
longevity and cow size will be determined. Cows will have a breeding value
estimate for efficiency in the feedlot based on their genomic, progeny and
½ sib records.
The deliverables will include: a) By using the gold standard methodology
for studying energy metabolism (indirect calorimeter) and therefore
feed efficiency, information about the effectiveness of genotyping for
feed efficiency will be generated and evaluated in mature cows and
replacement beef heifers; b) By using micro-calorimetry techniques,
gene and protein expression and other methods, the energy uptake
of key organs will reveal the individual contribution of these organs to
the total energy expenditures of the animal; c) The effects of improved
feed efficiency on the immune response of dam and on the amount of
antibodies passed to their offspring via colostrum will be determined; d)
By studying behavior, alternative traits may be found or further studied
related to efficiency; e) By mining existing data, the relationship between
feed efficiency in the feedlot sector with cow performance and efficiency
measures will be determined.
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Improvement Association project that demonstrated grazing beef
cows to be an attractive alternative to utilizing land for cash crops in
Southern Ontario
• Development of economic tools and resources for cow-calf operations
• Discussion on best management practices that could be prioritized,
investigated and promoted to producers for increasing the cow-
carrying capacity of existing farms, in order to help spur cow herd
expansion
• Review and discussion on VBP+ and the sustainability verification
framework being developed by the Canadian Roundtable for
Sustainable Beef
• Discussion on changes to the Ontario Wildlife Damage Compensation
Program
• Providing input for the consultations on the proposed changes to the
Health of Animals Act regulations that will affect cattle transportation
practices
• Providing input on the Cow-Calf Benchmarking Study (University of
Guelph research project)
• Organizing the 2016 Cow-Calf Roadshow and early stage planning of
the 2017 Cow-Calf Roadshow
Three sub-committees of the Cow-Calf Committee were created to
provide input on:
1. Development of economic tools for cow-calf operations
2. Identifying and promoting best management practices for increasing
cow-carrying capacity of existing farms, to support cow herd
expansion
3. Planning of the Cow-Calf Roadshow
9th Annual Cow-Calf Roadshow
BFO’s Annual Cow-Calf Roadshow hit the pavement in 2016 for Eastern
Ontario (Lanark County and surrounding area) in early September with
stops at five exceptionally managed farm operations and the Two Rivers
Food Hub. With a group of over 100 participants, the two-day event was
a success.
Thank you to our sponsors, speakers and participants. Special
acknowledgements to Paul and Mary-Ellen Ferguson, Alec MacGregor,
Dwight Foster, Lois James and family, and Don Badour and Barb Keith for
taking the time to host the group on their farms.
BFO Cow-Calf CommitteeSubmitted by Ken Mills, Chair
The BFO Cow-Calf Committee met four times in 2016-
17, which included two face-to-face meetings in Guelph
and two conference calls.
The committee worked on and provided feedback on a
number of issues, including:
• Recommendations for a new Cow-Calf Committee
Terms of Reference, which was adopted by the
BFO board
• Review and recommendations on 2016 resolutions,
particularly resolutions 16-02 Perimeter Fencing,
16-10 Government-Backed Breeder Loan Program
and 16-18 Land Use Challenges
• Review of the cost of production formula for the
cow-calf program under the Risk Management
Program
• Discussion on producer enrollment and potential
improvements in the cow-calf program of the Risk
Management Program
• Review of the reported statistics for Growing
Forward 2 and discussion of priorities for the next
agricultural policy framework
• Review and discussion on forage insurance and
Ontario’s Forage Rainfall Plan
• Discussion on industry events, including the Beef
Youth Development Program, Carcass 101/201,
BUILD and the Beef Symposium
• Discussion on an Ontario Soil and Crop
COMMITTEE REPORTS
The Cow-Calf and Feedlot Committees provide a forum for discussions related to cow-calf and feedlot production in the province. Committee members are also charged with reviewing policy and issues relevant to each sector.
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• Review and discussion of current dentition practices and alternatives
• Review and discussion of current market access priorities
• Providing recommendations for ways to better encourage the
voluntary reporting of fed cattle prices
• Review and discussion of the National Feedlot Animal Care
Assessment Program, VBP+, and sustainability indicators developed
by the Canadian Roundtable for Sustainable Beef
• Review of the impending CFIA Feed Modernization regulatory
changes and input on the BFO draft comments
• Providing recommendations to the draft BFO animal care strategy
• Review and discussion on the traceability regulatory development
process
• Providing support for BFO’s government relations strategy to help
address the market price downturn
BFO Feedlot CommitteeSubmitted by Paul Brown, Chair
The BFO Feedlot Committee met three times in 2016-
17, which included one face-to-face meeting in Guelph
and two conference calls.
The committee worked on and provided feedback on a
number of issues, including:
• Providing recommendations for a new Feedlot
Committee Terms of Reference, which was
adopted by the BFO board
• Providing input for the pre-Gazette and Canada
Gazette Part 1 consultations on the proposed
changes to the Health of Animals Act regulations
that will affect cattle transportation practices
• Review of the cost of production formula for the
backgrounder and feedlot programs under the
Risk Management Program
2016 Cow-Calf Committee
2016 Feedlot Committee
Ken Mills, Chair • Jamie O’Shea, Vice Chair • Dave Cavanagh • Gerald Rollins • Jason Reid
Brian Cochrane • Don Hargrave • John Lunn • Scott Honey • Greg Seed • Steve Thede
Paul Brown, Chair • Steve Eby, Vice Chair • Jack Chaffe • Joe Hill • Tom Wilson
Bob Bennett • Scott Cochrane • Chris Freiburger • Scott Honey • Scot Legge • Matt Shortreed
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Swidersky Family
Ontario’s beef farmers invest in their farms, families, communities and future. They work hard to provide safe and wholesome beef for their families and yours.
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Ontario Beef Magazine
Ontario Beef was published five times in 2016 (February, May, August,
October and December) to approximately 16,000 of BFO’s members,
industry partners, MPs and MPPs. The magazine provides members of
BFO and industry stakeholders with timely information, updates on current
industry issues, upcoming events, market statistics and more. We continue
to update our circulation database to better reflect our active and current
membership data with the goal to ensure all active members of BFO
are receiving this publication. If you have had interruptions in receiving
Ontario Beef, please contact the BFO office to verify your complete
mailing address.
“Worried About” Educational Resources
In partnership with the Alberta Beef Producers, BFO continues to develop
educational resources to help consumers better understand beef
production and how beef animals are raised. To date, five fact-based
resources have been created covering a range of topics including what
cattle eat, animal care, greenhouse gases and hormone use. The goal
of these resources is to help build consumer confidence in Ontario beef
production.
Sharecost Program
The Sharecost Program continues to be a well-utilized program. In 2016,
42 counties and districts received a total return to the local level of just
under $125,000. Qualifying producer applications in 2016 ranged from
educational workshops to bus trips, while consumer activities included fall
fair involvement, local beef promotions and community sponsorship.
Fueling the CFL with Canadian Beef
in the spring of 2016, beef farmers from across the province were
encouraged to post a photo using social media that demonstrated their
passion and commitment to beef farming for a chance to win an exciting
contest and a weekend trip for their family.
COMMUNICATIONS
To address unique challenges and improve the support of Ontario farmers and provincially focused marketing initiatives, BFO has developed a three-year Regional Marketing Initiative set to begin in 2017.
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BFO’s Most Valuable Producer (MVP) contest was a component of the
multi-year partnership between Canada Beef and the Canadian Football
League (CFL) to promote beef, beef farmers and ranchers. In August, three
winning entries were selected and three farm families were named BFO’s
MVPs. The three lucky families received tickets to a CFL game, a VIP tour
of the stadium and live recognition during the game, and a family football
prize pack.
BFO staff, directors and producer volunteers geared up for a busy summer
and travelled the province in August and September attending games in
Ottawa, Toronto and Hamilton. Similar to BFO’s exposure over the past
two years, a 30-second video clip highlighting Canada’s beef industry was
viewed on the large screen inside the stadium, the MVPs were recognized
live during the game, and there was an opportunity to engage with beef-
loving fans in an activation area. Fans who stopped by the area were
treated to protein powerful recipes, a chance to win a team jersey, and a
football fan photo opportunity.
A special thank you to all who entered the contest and to the producer
volunteers who supported BFO’s CFL activities.
Regional Marketing Initiative
Despite the fact that the Ontario market is the largest consumer market
in Canada, the beef industry in Ontario continues to face increasing
pressures from diverse import competitors, and copes with significant cost
of production and economy of scale disadvantages in the North American
market. To address these unique challenges and improve the support of
Ontario farmers and provincially focused marketing initiatives, BFO has
developed a three year Regional Marketing Initiative (RMI) set to begin in
2017.
While the RMI is complimentary to the national brand strategy, it includes
strong linkages to industry partners, government agencies and the beef
processing sector in Ontario. A strong processing sector is important
to Ontario beef farmers and is a critical link to creating demand pull for
Ontario beef from the farm gate through to the consumer. Through BFO
support, several Ontario beef brands have been successful in generating
recognized value in the Ontario market. The intent of this initiative is to
build on these models of success and provide the stimulus for sustainable
growth in the Ontario beef industry.
Cow Herd Expansion
A number of communication tools to support cow
herd expansion in Northern Ontario continue to be
released. Most recent additions to the Beef North
website include production-based videos, a blog
section highlighting activities in Northern Ontario, a
calendar of events, and e-updates for interested
farmers. A bus trip for OAC University of Guelph
students was also supported by BFO in the fall of
2016. This project was funded in part through Growing Forward 2 (GF2), a federal-provincial-territorial initiative. The Agricultural Adaptation Council assists in the delivery of GF2 in Ontario.
Sponsorship & Events
BFO continued its support of a number of initiatives
throughout 2016. Participating in tradeshows
provides an excellent avenue to connect with
members to address industry concerns, and to meet
with consumers to resolve misconceptions on food
safety and beef farming practices. BFO participated in
and/or supported the following events and initiatives
in 2016:
• Beef Industry Convention
• Beef Symposium
• Beef Carcass 101 and 201
• Breed Association Shows and Events
• Discovery Days – 4-H Ontario
• Canada’s Outdoor Farm Show
• Canadian National Exhibition
• Canada’s Outstanding Young Farmers’ Award
• CFFO Convention
• East Central, Earlton and Quinte Farm Shows
• Foodland Ontario’s Farmers’ Market
• Grey Bruce Farmers’ Week
• Junior Farmers’ Association of Ontario
• Junior Beef Heifer Show - RAWF
• LMAC Convention
• AgScape Teacher Ambassador Program
• Royal Agricultural Winter Fair
• Traceability Symposium
• Queen’s Guineas Competition - RAWF
• Youth Forum
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The increase in the guarantee means that co-operatives now have access to an additional $130 million in affordable financing, which will provide room for new members and will increase loan amounts for current members.
ONTARIO FEEDER CATTLE LOAN GUARANTEE PROGRAM
The Ontario Feeder Cattle Loan Guarantee Program was established
in 1990 to provide low-interest loans to beef farmers in the province
through 17 local co-operatives. The program is backed by a 25% provincial
government guarantee that has never been called on in the program’s 26-
year history, which speaks to the strength of the program.
At the beginning of 2016, a total of $120 million in loans was committed
among the 17 co-operatives. This was the largest amount ever committed
under the program to date.
Strong cattle prices in 2014-15, combined with the widespread popularity
of the program, prevented farmers from taking full advantage of the
program, and removed the ability of many local co-operatives to take on
new members – in particular, young farmers who account for over a third
of existing program participants.
Fortunately, in late May, The Honourable Jeff Leal, Minister of Agriculture,
Food and Rural Affairs announced an increase to the government
guarantee from $32.5 million to $65 million. The increase in the guarantee
means that co-operatives now have access to an additional $130 million
in affordable financing, which will provide room for new members and will
increase loan amounts for current members. OMAFRA was able to start
allocating the new limits in October, and currently there is almost $195
million allocated to the co-operatives.
Other changes to the Order in Council announced in May were:
• A corporation can be a member with a loan limit of $500,000
• Co-operatives have the option to allow custom feeding
For a listing of Feeder Co-op
Administrators,
visit www.ontariobeef.com
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• More stringent guidelines with respect to credit review and due
diligence
• A simpler process to reallocate funds if necessary, and the removal of
the annual signing of agreements among partners
• A stringent protocol for when a member defaults on a loan
The number of new members in the program decreased to 42, which is
about 25 fewer than in most years. This was due to a combination of lack
of money in the early part of the year, and decreased enthusiasm among
beef farmers as the year progressed due to weak market prices. 13% of
the program’s membership did not renew in 2016, which is up from 5% in
2015.
2016 2015 2014 2013 2012
Number of Co-ops 17 17 18 18 18
Total Membership 844 915 904 766 727
Under Age 40 317 351 339 245 228
Active Members
During Year 794 838 821 687 700
As of December 31 652 765 726 595 591
Number of Cattle
Purchased in Year 91,631 85,107 95,713 97,448 86,985
Sold in Year 86,872 85,821 96,144 92,802 93,877
On Hand, December 31 68,834 64,182 66,178 67,001 62,599
Financial
Outstanding Loans, December 31 $88.0M $113.0M $102.2M $68.9M $62.5M
Total Amount Committed, December 31 $94.5M $120.0M $113.4M $74.0M $67.1M
Total Loans Advanced During Year $126.8M $155.9M $141.3M $100.5M $89.0M
It is no surprise that 17% of members had to dig deep
into their pockets and/or their own assurance funds to
cover shortages on loans. It is interesting to note that
assurance account usage was greater than during
BSE when members had benefitted from an ad hoc
payment per head by the government.
As we head into 2017, there will be revisions to
paperwork, further discussions on refinements to the
new Order in Council, and promotion of the program
since individual loan limits and the guarantee are no
longer constricting growth. We ended the year with
12% of our membership borrowing over $250,000.
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About 39% of the program’s membership are under 40 years of age, and the average amount borrowed is just over $40,000.
ONTARIO BEEF BREEDERPROGRAM
After a phenomenal year of growth in 2015 for the co-operatives under the
Ontario Beef Breeder Program, 2016 proved to be a year of apprehension
given the downward slide in cattle prices. The eight co-operatives continue
to exist and the majority of members are in good standing after the yearly
December payments.
Currently, co-operatives have lending limits of $50,000 to over $150,000
per member, which is still limited by the lender, as well as the loan limits
per head. About 39% of the program’s membership are under 40 years of
age, and the average amount borrowed is just over $40,000.
Recognizing the need to find new ways to expand access to affordable
financing options for beef farmers, BFO directors and staff continued
to promote the idea of a government-backed breeder loan guarantee
program, similar to the Ontario Feeder Cattle Loan Guarantee Program,
in discussions with elected representatives at all federal and provincial
lobby days in 2016.
In addition, BFO and the Ontario Sheep Marketing Agency received
federal funding for a project to study the risk assessment on guaranteeing
a breeder loan program for both beef and sheep farmers. Project results
are expected later this year.
Year as of June 30, 2016 2016 2015 2014 2013 2012 Number of members 346 334 298 280 279 Number of active members 317 308 259 239 238 Total cow inventory 9,069 7,950 7,874 7,564 7,930 Total principal outstanding (million) $12.9 $9.11 $6.83 $5.95 $5.61 Average number of females per active member
29 26 30 32 33
Number of new members in the first six months of year
36 33 35 22 24
Number of females purchased in the first six months
1,300 1,152 1,265 907 912
For a listing of Breeder Co-op
Administrators,
visit www.ontariobeef.com
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4 /
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Legge Family
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MARKET STATISTICS
Four Convenient Ways to Access Market Information from the BFO Office
Website www.ontariobeef.com
Tapeline TF: 866.370.2333
Local: 519.824.0334Ext. 300 - Daily Report Ext. 301 - Noon Report
Fax519.824.9161
Beef farmers are passionate people. They care about the well-being of their
animals, and providing opportunities for their families and
future generations.
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150.00
170.00
190.00
210.00
230.00
250.00Ja
n
Feb
Mar Ap
r
May Jun Jul
Aug
Sep
Oct
Nov De
c
Pric
e pe
r hun
dred
wei
ght
Replacement Steers 1000 lbs + Ont Average Monthly Price
2014 2015 2016
Replacement Steers1000 lbs +
Ontario Average Monthly Price
Replacement Steers500-599 lbs
Ontario Average Monthly Price
180.00200.00220.00240.00260.00280.00300.00320.00340.00
Jan
Feb
Mar Ap
r
May Jun Jul
Aug
Sep
Oct
Nov De
c
Pric
e pe
r hun
dred
wei
ght
Replacement Steers 500-599 lbs Ont Average Monthly Price
2014 2015 2016
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2012 2013 2014 2015 2016Stockers 286,785 274,986 263,936 242,525 248,379
210,000
220,000
230,000
240,000
250,000
260,000
270,000
280,000
290,000
Num
ber o
f hea
d
Stocker Volume Sold Through Ontario Auction Markets
Stocker Volume SoldThrough Ontario Auction Markets
Replacement Steers Ontario Average Monthly Price
Per Hundred Weight Replacement Steers Ont Average Monthly Price per Hundred Weight
Over 1000 lb. 500 – 600 lb.
Month 2016 2015 2014 2016 2015 2014
January 214.83 226.50 160.65 257.40 281.62 186.79
February 198.35 220.30 165.70 256.12 281.38 186.52
March 184.97 219.09 165.11 233.34 301.76 195.08
April 164.42 227.45 162.75 209.33 313.02 208.63
May 168.55 227.33 164.48 214.78 309.69 222.79
June 164.10 227.86 178.57 213.94 324.01 237.34
July 163.51 228.90 194.53 202.65 298.04 263.39
August 161.06 234.77 200.37 187.54 311.46 262.06
September 163.02 229.93 208.40 197.04 306.32 269.43
October 160.34 225.89 224.47 190.19 291.03 286.26
November 160.31 210.67 230.91 185.18 256.88 275.72
December 174.53 203.01 229.12 191.65 241.12 280.92
Replacement Steers1000 lbs +
Ontario Average Monthly Price
Replacement Steers500-599 lbs
Ontario Average Monthly Price
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Ontario Auction Markets
Large and Medium Frame Fed Steers 1250 lbs + Average Weekly Price Per Hundred Weight
Week # 2016 2015 2014 Week # 2016 2015 2014
1 173.04 181.51 135.28 27 150.33 198.67 164.42 2 171.43 186.24 137.53 28 152.61 195.77 169.29 3 172.25 186.59 134.83 29 147.73 195.40 167.84 4 172.20 185.91 139.60 30 146.24 190.26 167.86 5 170.57 187.94 147.51 31 148.98 189.09 174.49 6 170.59 188.75 144.95 32 147.59 190.18 170.59 7 167.89 191.44 144.57 33 140.80 186.89 167.68 8 165.77 189.85 145.86 34 138.39 187.42 164.96 9 167.37 190.92 148.73 35 133.43 184.91 156.20
10 168.67 195.48 147.38 36 126.52 181.78 157.71 11 165.97 196.14 148.44 37 126.32 178.80 153.46 12 163.78 195.49 150.50 38 129.09 170.93 159.59 13 162.42 198.15 151.85 39 125.71 163.91 161.32 14 157.67 203.32 143.63 40 123.93 155.37 161.48 15 150.49 200.70 151.59 41 126.89 157.98 166.29 16 149.03 198.88 151.92 42 123.67 162.40 166.31 17 148.38 193.79 151.61 43 123.47 165.57 168.97 18 147.69 198.02 152.74 44 123.79 164.03 170.92 19 148.34 196.88 152.43 45 124.42 160.64 171.80 20 158.12 199.50 155.52 46 126.90 153.64 174.04 21 158.27 198.93 156.53 47 128.92 155.71 174.74 22 157.42 203.26 152.39 48 131.13 154.26 178.05 23 155.44 195.61 158.40 49 134.84 153.01 178.33 24 151.98 195.01 161.42 50 132.45 150.91 180.25 25 147.67 196.73 160.78 51 128.36 157.56 175.07 26 147.72 193.86 162.41 52 139.19 162.85 N/T
Ontario Auction Markets Large and Medium Frame Fed Steers
1250 lbs +Ontario Average Weekly Price - Per Hundred Weight
Beef Cow VolumesOn Ontario Farms
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Beef Cow VolumesOn Ontario Farms
225,000
250,000
275,000
300,000
325,000
350,000
375,000
400,000
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tota
l num
ber o
f hea
d
Data from Statistics Canada 2016 Cattle Stats Released August 18, 2016
Beef Cows On Ontario Farms380,000 head in 2006268,100 head in 2016
Ontario Annual Processing Volumes Federal and Provincial Inspected Plants
2012 2013 2014 2015 2016Steers 365,537 386,631 400,923 384,330 407,347Heifers 174,893 161,782 160,348 136,840 138,326Cows 96,889 94,537 87,263 70,021 68,999
050,000
100,000150,000200,000250,000300,000350,000400,000450,000
Tota
l num
ber o
f hea
d
2016 totals are preliminary
Ontario Annual Processing Volumes Federal & Provincial Inspected Plants
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Ontario Railgrade SteersOntario Average Monthly Price
210.00
230.00
250.00
270.00
290.00
310.00
330.00
350.00Jan
Feb
Mar Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
Price pe
r hun
dred
weight
Ontario Railgrade Steers Average Monthly Price
2014 2015 2016
Ontario Railgrade SteersEstimated Monthly Breakeven Vs. Monthly Average Price
200.00
220.00
240.00
260.00
280.00
300.00
320.00
340.00
Jan-
15
Mar
-15
May
-15
Jul-1
5
Sep-
15
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16
Jan-
17
Mar
-17
May
-17
Pric
e pe
r hun
dred
wei
ght
Ontario Railgrade Steer Estimated Monthly Breakeven Vs Monthly Avgerage Price
Estimated Breakeven Price
Railgrade Steer Monthly Average Price
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Ontario Railgrade SteersOntario Packing Plants
Ontario Average Weekly Price Per Hundred WeightRailgrade Steers
Ontario Packing Plants Average Weekly Price per Hundred Weight
Week #
2016 2015 2014 Week #
2016 2015 2014
1 290.00 306.00 217.25 27 251.00 331.50 270.50
2 291.00 315.25 223.25 28 257.25 331.50 275.75
3 289.25 315.25 229.50 29 253.75 330.50 278.00
4 291.75 314.25 236.25 30 244.00 327.50 278.75
5 293.00 314.50 246.25 31 249.25 323.75 280.75
6 290.75 315.50 247.50 32 250.00 320.00 285.00
7 286.00 315.25 246.25 33 246.00 318.50 283.50
8 285.50 313.75 245.25 34 237.25 315.00 278.50
9 285.25 313.25 244.25 35 225.75 311.75 273.00
10 285.00 317.00 245.25 36 215.75 307.75 271.75
11 283.50 319.25 248.00 37 204.00 302.25 271.50
12 283.50 320.25 248.75 38 214.00 295.50 272.00
13 282.75 325.25 251.75 39 217.25 282.25 274.00
14 N/T 330.75 254.25 40 209.50 256.75 272.00
15 271.75 334.25 255.50 41 214.00 257.75 273.75
16 268.00 333.50 255.00 42 211.00 265.50 277.25
17 258.50 330.75 255.00 43 213.00 272.50 279.75
18 251.50 328.75 255.50 44 214.75 279.00 285.75
19 249.00 328.25 256.25 45 214.75 276.50 288.00
20 251.75 330.25 259.50 46 215.00 267.50 288.00
21 259.50 332.75 260.50 47 218.00 263.00 288.00
22 263.75 337.50 261.25 48 226.00 262.25 292.25
23 267.00 337.50 262.50 49 230.75 258.50 297.00
24 265.50 338.25 263.00 50 233.25 255.25 299.75
25 252.75 333.75 266.25 51 233.00 255.25 300.75
26 250.50 332.50 270.00 52 242.25 274.75 300.50
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Ontario / Alberta Price Comparison Finished Steers – Dressed Basis
Monthly Average Price per Hundred Weight
Month Ontario 2016 Alberta 2016 Spread
January $290.50 $296.63 -6.13 February $288.81 $287.88 +0.93
March $283.69 $280.86 +2.83 April $269.42 $274.76 -5.34 May $252.94 $265.51 -12.57 June $258.94 $255.29 +3.65 July $251.50 $245.62 +5.88
August $241.65 $239.73 +1.92 September $212.75 $218.36 -5.61
October $211.88 $221.02 -9.14 November $218.44 $235.36 -16.92 December $234.81 $255.27 -20.46
Data source: Canfax/BFO Ontario / U.S. Price Comparison Finished Steers – Dressed Basis
Monthly Average Price per Hundred Weight
Month Ontario 2016 U.S. 2016(converted to CDN $) Spread
January $290.50 $296.96 -6.46 February $288.81 $289.53 -0.72
March $283.69 $289.73 -6.04 April $269.42 $267.13 +2.29 May $252.94 $261.72 -8.78 June $258.94 $255.55 +3.39 July $251.50 $246.18 +5.32
August $241.65 $240.56 +1.09 September $212.75 $219.61 -6.86
October $211.88 $209.84 +2.04 November $218.44 $224.21 -5.77 December $234.81 $237.21 -2.40
Data source: BFO/USDA
Ontario/Alberta/U.S. Price ComparisonFinished Steers - Dressed Basis
Monthly Average Price
210.00220.00230.00240.00250.00260.00270.00280.00290.00300.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pric
e pe
r hun
dred
wei
ght
Data Source: Canfax/USDA/BFO
Ontario / Alberta / U.S. Price Comparison 2016 Finished Steers - Dressed Basis - Monthly Average Price
Ontario Alberta US (CDN $)
Ontario/Alberta Price ComparisonFinished Steers - Dressed Basis
Monthly Average Price Per Hundred Weight
Ontario / Alberta Price Comparison Finished Steers – Dressed Basis
Monthly Average Price per Hundred Weight
Month Ontario 2016 Alberta 2016 Spread
January $290.50 $296.63 -6.13 February $288.81 $287.88 +0.93
March $283.69 $280.86 +2.83 April $269.42 $274.76 -5.34 May $252.94 $265.51 -12.57 June $258.94 $255.29 +3.65 July $251.50 $245.62 +5.88
August $241.65 $239.73 +1.92 September $212.75 $218.36 -5.61
October $211.88 $221.02 -9.14 November $218.44 $235.36 -16.92 December $234.81 $255.27 -20.46
Data source: Canfax/BFO Ontario / U.S. Price Comparison Finished Steers – Dressed Basis
Monthly Average Price per Hundred Weight
Month Ontario 2016 U.S. 2016(converted to CDN $) Spread
January $290.50 $296.96 -6.46 February $288.81 $289.53 -0.72
March $283.69 $289.73 -6.04 April $269.42 $267.13 +2.29 May $252.94 $261.72 -8.78 June $258.94 $255.55 +3.39 July $251.50 $246.18 +5.32
August $241.65 $240.56 +1.09 September $212.75 $219.61 -6.86
October $211.88 $209.84 +2.04 November $218.44 $224.21 -5.77 December $234.81 $237.21 -2.40
Data source: BFO/USDA
Ontario/U.S. Price ComparisonFinished Steers - Dressed Basis
Monthly Average Price Per Hundred Weight
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Monthly Average Warm Carcass Weight Steers
Ontario Canada
Month 2016 2015 2014 2016 2015 2014 January 987 934 900 937 875 847
February 983 917 897 942 875 857
March 972 910 896 937 883 857
April 971 929 894 936 878 852
May 962 909 892 888 857 827
June 945 909 869 883 850 825
July 917 900 876 899 869 840
August 930 921 895 916 901 868
September 934 944 908 928 920 882
October 952 951 928 930 933 906
November 966 970 941 932 940 906
December 969 976 940 924 939 880
Data Source: Canfax/CBGA
Monthly Average Warm Carcass WeightHeifers
Monthly Average Warm Carcass Weight Heifers
Ontario Canada
Month 2016 2015 2014 2016 2015 2014 January 867 826 809 851 809 792
February 865 816 794 851 809 793
March 861 818 807 858 817 801
April 860 822 804 864 814 797
May 838 820 802 830 803 774
June 845 818 788 812 797 760
July 827 802 786 820 800 768
August 819 814 801 820 824 786
September 826 828 809 844 838 802
October 833 834 813 841 848 818
November 845 844 816 849 855 816
December 849 865 829 832 857 810
Data Source: Canfax/CBGA
Monthly Average Warm Carcass WeightSteers
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Canadian Boxed Beef Cut-Out Values
Weekly Average Price per Pound
Week #
2016 AAA
2016 AA
2015 AAA
2015 AA
Week #
2016 AAA
2016 AA
2015 AAA
2015 AA
1 3.0549 3.0092 2.8752 2.8197 27 2.7639 2.5194 2.9058 2.8864
2 3.0558 3.0791 2.9889 2.9043 28 2.7704 2.5935 2.9752 2.8816
3 3.1153 3.0876 3.0440 2.9223 29 2.5982 2.4820 3.0225 2.9609
4 2.9922 2.8700 3.0102 2.9412 30 2.6351 2.5313 3.0136 2.9908
5 2.8886 2.8804 3.0308 2.9831 31 2.5876 2.4911 3.0533 3.0074
6 2.9401 2.9513 32 2.5490 2.4509 3.0517 2.9848
7 2.8873 2.8172 33 2.5405 2.4499 3.0844 3.0487
8 2.9037 2.7641 3.0568 3.0366 34 2.6537 2.5303 3.1031 3.0396
9 2.9284 2.7830 3.0322 2.9970 35 2.4319 2.3754 3.0936 2.9307
10 2.9358 2.8253 3.0720 3.0347 36 2.4260 2.3559 2.9889 2.9093
11 2.9619 2.8629 3.0651 3.0571 37 2.4003 2.3441 2.9213 2.8533
12 2.9220 2.8491 3.1020 3.0216 38 2.4476 2.3928 2.8335 2.7258
13 2.8375 2.7462 3.1588 3.1454 39 2.4172 2.3519 2.7758 2.6671
14 2.8132 2.7353 3.2018 3.1231 40 2.4613 2.3857 2.7135 2.6427
15 2.8120 2.7875 3.2067 3.1410 41 2.3700 2.3193 2.7241 2.6536
16 2.8151 2.7323 3.1451 3.1191 42 2.3177 2.3006 2.7079 2.6788
17 2.7050 2.6015 3.1150 3.0855 43 2.3142 2.2373 2.7685 2.6265
18 2.6517 2.5879 3.0970 3.0434 44 2.4344 2.3303 2.7511 2.6352
19 2.7464 2.6678 3.1512 3.0883 45 2.4237 2.3010 2.7903 2.6811
20 2.7577 2.6213 3.1785 3.0930 46 2.4479 2.3124 2.6867 2.5924
21 2.7795 2.6525 3.1377 3.0742 47 2.4839 2.3183 2.6398 2.5282
22 2.8727 2.6662 3.1583 3.0516 48 2.5334 2.3210 2.6358 2.5163
23 2.8667 2.6473 3.1990 3.0556 49 2.4901 2.3020 2.6269 2.4882
24 2.9067 2.5831 3.1729 3.0543 50 2.5127 2.3953 2.5960 2.5304
25 2.8173 2.5573 3.1065 3.0407 51 2.5764 2.4380 2.8117 2.6897
26 2.8173 2.5894 3.0677 2.9817 52 2.4445 2.3926 2.9369 2.8437 Data Source: Canfax/AAFC
Canadian Boxed Beef Cut-Out Values Weekly Average Price Per Pound
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2.002.202.402.602.803.003.20
wk
1
wk
4
wk
7
wk
10
wk
13
wk
16
wk
19
wk
22
wk
25
wk
28
wk
31
wk
34
wk
37
wk
40
wk
43
wk
46
wk
49
wk
52Aver
age
pric
e pe
r pou
nd
Data Source: Canfax & AAFC
Canadian Boxed Beef Cut-Out Values - AAA
2014 2015 2016
Canadian Boxed Beef Cut-Out ValuesAAA
Canadian Boxed Beef Cut-Out ValuesAA
2.00
2.20
2.40
2.60
2.80
3.00
3.20
wk
1
wk
4
wk
7
wk
10
wk
13
wk
16
wk
19
wk
22
wk
25
wk
28
wk
31
wk
34
wk
37
wk
40
wk
43
wk
46
wk
49
wk
52Aver
age
pric
e pe
r pou
nd
Data Source: Canfax & AAFC
Canadian Boxed Beef Cut-Out Values - AA
2014 2015 2016
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CANADA Youthful Cattle Beef Grade Distribution 2016
Federally Inspected Plants Percent
Quality Grade
Yield Group
Total
Y1 Y2 Y3 A Prime 0.23 0.59 1.68 2.50
AAA 17.05 22.87 23.24 63.17 AA 18.16 8.97 3.94 31.07 A 1.21 0.19 0.04 1.45
B1 0.06 B2 0.02 B3 0.18 B4 1.56
Total 36.65 32.62 28.91 100.00 No. head graded: 2,226,465
ONTARIO Youthful Cattle Beef Grade Distribution 2016
Federally Inspected Plants Percent
Quality Grade
Yield Group
Total
Y1 Y2 Y3 A prime 0.56 1.07 2.46 4.09
AAA 18.13 21.12 17.12 56.37 AA 24.25 7.93 3.24 35.41 A 1.96 0.06 0.01 2.04
B1 0.00 B2 0.01 B3 0.39 B4 1.64
Total 44.89 30.19 22.82 100.00 No. head graded: 503,662 Note: Based on gradings in federally inspected plants.
Mature Cattle Distribution 2016 Federally Inspected Plants
Percent Ontario Canada
D1 7.8 3.1 D2 54.9 66.4 D3 34.0 21.7 D4 3.1 5.3 E 0.3 3.6
Total head graded 39,083 388,609 Total head ungraded 22,760 33,947
Data Source: CBGA/Graeme Hedley
Beef Grade Distribution 2016
Canadian Beef Imports and Exports
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0100,000200,000300,000400,000500,000600,000700,000800,000900,000
1,000,0001,100,0001,200,000
2012 2013 2014 2015 2016
Num
ber o
f hea
d
Data Source: Agriculture and Agri Food Canada 2016-Imports- Jan 1- Nov 30 2016-Exports Jan 1- Dec 31, 16
Canadian Live Cattle Imports and Exports
Imports into Canada Exports from Canada
Canadian Live Cattle Imports and Exports
Canadian Beef Imports and Exports
050,000
100,000150,000200,000250,000300,000350,000
2012 2013 2014 2015 2016
Tonn
es
Data Source: Agriculture & Agri Food Canada2016-Imports- Jan 1- Dec 31, 2016 2016-Exports Jan 1- Nov 30, 2016
Canadian BeefImports and Export
Total Beef Imports Beef Imports from USBeef Imports Non-Nafta Beef Exports
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Heleniak Family
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Beef Cattle Research Council
BIO
Canada Beef
Canadian Cattlemen’s Association
Canadian Cattle Identification Agency
Farm and Food Care
National Check-off Agency
Ontario Cattle Feeders’ Association
Ontario Beef Cattle Financial Protection Fund
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Canada’s Beef Cattle Industry Science Clusters
The first Beef Cattle Industry Science Cluster directed $10.5 million to 32 research projects between April 1, 2009 and March 31, 2013. Joint industry and government commitments to the second Cluster (April 1, 2013 – March 31, 2018) totaled $20 million, including $14 million in funding from AAFC, $1 million in provincial government investments, and $5 million in funding from the research allocation of the Canadian Beef Cattle Check-off and provincial beef industry groups. Funding was directed to 26 research projects. A summary of every Cluster-funded project can be found on BeefResearch.ca.
The first and second Clusters have proven to be a very successful step towards improving coordination of beef research funding in Canada including AAFC, BCRC, provincial governments, provincial cattle associations, and other industry funders. The Clusters motivated a growth of industry investment in research and technology transfer. Funding has been focused on a comprehensive outcome-based research program directly aligned with industry’s vision and priorities, including capacity development in critical areas. As a result, Cluster investments are generating meaningful, applicable knowledge and technologies for the industry, as well as extension tools to increase adoption of the innovations.
The BCRC is working to renew this program under AAFC’s next agricultural policy framework and planning for the third Beef Cattle Industry Science Cluster covering the period April 1, 2018 to March 31, 2023. AAFC’s funding commitments for the third Cluster are expected to be announced in 2017. The BCRC will then allocate available funding to research projects aligned with the outcomes in the Canadian Beef Research and Technology Transfer Strategy that have the greatest potential to advance the industry.
Canadian Beef Research and Technology Transfer Strategy
Following a collaborative development process with input from industry stakeholders, grassroots producers, researchers, research institutions, and beef research funding agencies through various means including direct consultation, an online survey, and two workshops, the Canadian Beef Research and Technology Transfer Strategy was released in December 2016. The new Strategy builds upon the success of the 2012-2018 National Beef Research Strategy developed by the BCRC and the national Beef Value Chain Roundtable (BVCRT).
Like the first Strategy, the 2018-2023 Strategy is intended to ensure all of industry’s research priorities are adequately addressed, strengthen future funding requests from industry to government, and maximize the value of all investments in research within the Canadian beef cattle industry.
The Beef Cattle Research Council (BCRC) is Canada’s industry-led funding agency for beef, cattle and forage research. Its mandate is to determine research and development priorities for the Canadian beef cattle industry and to administer the Canadian Beef Cattle 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 Canadian Beef Cattle Check-off.
On average nationally, the BCRC receives approximately 18% of the Canadian Beef Cattle Check-off, and plays a key role in leveraging additional funding for beef cattle research. 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.
Investments in beef research have several benefits, including an improved ability to meet increasing global food demand and supporting responsible production efficiencies and profitability of Canadian beef cattle producers. Advancements in the industry also positively impact the nation’s economy.
Beef Cattle Research Council
Investments in beef research have several benefits, including an improved ability to meet increasing global food demand and supporting responsible production efficiencies and profitability of Canadian beef cattle producers.
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Having developed specific outcomes under industry-identified priority areas, the Strategy will support the industry’s core research objectives of enhancing industry sustainability and improving production efficiencies, improving consumer confidence and beef demand, and improving public confidence in Canadian beef. The new Strategy’s research objectives are to be captured by 2023.
The Strategy will guide the industry to achieve high priority beef research objectives that support increasing productivity while remaining environmentally, socially and economically sustainable. It will better enable Canada to seize the opportunity to play a leading role in meeting rising global food production needs responsibly and contribute to the industry’s ability to remain globally competitive from a production, regulatory, and trade perspective through investments in agriculture research across a variety of disciplines.
The full Strategy and a six page overview can be found on BeefResearch.ca. The Strategy is a dynamic document intended to continue to evolve based on stakeholder feedback and ongoing review as research outcomes are achieved and new outcomes arise. Feedback on the Strategy and its outcomes is welcome and encouraged.
The National Beef Strategy
The BCRC will play an integral role in achieving several of the industry goals established through strategic investments in research and extension. Consequently, the BCRC has developed a long-term funding plan to identify the necessary funding requirements to achieve these goals.
The proposed increase in Canadian Beef Cattle Check-off will be integral to maintaining existing BCRC research programming. Additional funding would enable an expansion of research programming into high priority areas, such as strategic investment in research capacity in meat science and forage utilization, and the expansion of research surveillance networks to monitor antimicrobial resistance, production limiting diseases and other animal health information.
Technology Transfer
The BCRC continues to advance the implementation of its Knowledge Dissemination and Technology Transfer Strategy, which is focused on converting applied research into effective tools that drive industry competitiveness.
Bov-Innovation sessions were introduced at the 2016 Canadian Beef Industry Conference. The sessions featured researcher presentations on particular concepts, followed by producers who explained how they made the innovation work in their situation. The six short, exciting and interactive sessions focused on improving productivity and profitability in cow-calf and cattle feeding operations through advancements in animal health and welfare, forage productivity and genomics.
The BCRC website, www.beefresearch.ca, provides access to general information on research topics, summaries of in-progress and completed research projects, and information that helps producers make informed decisions on implementing innovation into their production practices. The website delivers various BCRC-produced and other valuable extension
resources including articles, videos, webinars, and calculators.
Communications from the BCRC can also be found through various cattle organizations’ publications, and through a regular research column that appears in the Canadian Cattlemen magazine.
Advancement of the Verified Beef Production Plus 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 Production Plus (VBP+).
The VBP program has worked with industry stakeholders to develop additional modules for animal care, biosecurity and environmental stewardship. The additional modules will be available to producers in Summer 2017. These modules are an opportunity for producers to secure further recognition for credible production practices. The program is now working with Canada’s Roundtable for Sustainable Beef (CRSB) in a process to determine equivalency of VBP+ and ProAction (dairy equivalent) with the CRSB’s sustainability indicators.
For More Information
To learn more about BCRC initiatives and take advantage of our extension resources, visit our website at www.beefresearch.ca and join our email list at www.beefresearch.ca/blog/subscribe.
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together with consumers for direct marketing. The most exciting thing is when systems connect to give the whole story, which is rare. BIO has “bridged” bioTrack and bioLinks to provide an end to end story (pedigree to steak) like never before.
BIO maintains it roots in beef genetic evaluation, providing information that is invaluable when making selection decisions on bulls and females. The bull test program is still active and Ontario producers should be checking out the numbers on the bulls offered for sale by BIO bull test participants. Any farmer selecting a bull without solid numbers is simply not in the beef business. BIO geneticists continue to partner with other leading institutions including the University of Guelph, American Angus Association, AgResearch New Zealand and Livestock Gentec at the University of Alberta. Work continues in the area of genomics with the goal of bringing accurate predictions of genetic merit on a wider range of traits. One study that should interest all producers is aiming to identify genetics that produce calves that will finish with high marbling and high yield. The yield of Canadian cattle has fallen off dramatically in the past ten years as the feedlot sector chased marbling through overfeeding. For beef to compete with chicken, the cow calf sector must become involved and select the right genetics to bring yield back up while retaining high marbling.
BIO is also involved with extension activities, partnering with Dr. Angela Canovas in the production of several videos regarding genetics. BIO has also been active as part of the industry-led Food Integrity Team with a focus on using information to protect the value added by progressive producers. This value is being threatened more and more by unscrupulous producers making false claims regarding production practices and product merit.
As BIO’s mandate has evolved, so has our clientele now made up of farmers across beef, sheep and goat and several post farm gate businesses across Canada and the United States. BIO is not just beef and not just Ontario. Our mandate is to help capture and tell the story of food. A documented story is a biography and so bio is now known as biography of food.
Beef farmers across Ontario and Canada are adapting to a new world: one in which more information must be collected on their animals to retain markets, or for those choosing to do even more, access higher value markets. BIO works closely with the industry to ensure that their systems help farmers and contribute to their successes.
The award winning bioTrack system is under complete redevelopment with the aim of making it even more farmer friendly and flexible. BIO has partnered with AGSI whose main business is in the telecommunications and utilities sectors, but who also manage Ontario’s Agricultural Premises Registry. The new Go360 bioTrack will be ready to go on any smartphone and offer more choice in which data you want to collect. It will be the simplest way to meet new requirements such as documenting sustainable production (via VBP+) or basic traceability information. With BFO and CCA support, all elements of VBP+ will be included in Go360 bioTrack.
Our bioLinks system, which focuses on information management post farm gate, was recognized with a 2016 Premier’s Award for Excellence in Agri-Food Innovation. BIO worked closely with BFO to ensure that bioLinks met the needs of farmers wanting to be involved in the Farm to City model; bringing farmers
BIOBIO worked closely with BFO to ensure that bioLinks met the needs of farmers wanting to be involved in the Farm to City model; bringing farmers together with consumers for direct marketing.
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Canada Beef continues to drive the Canadian beef brand through three core functions: branding, marketing and business development. Canada Beef’s approach leverages a ‘national league’ strategy anchored by the Canadian beef brand, its promise, pillars and moreover, the very DNA of the brand being the Canadian Beef Advantage.
A league of 68,500 beef farms and ranches united with one voice, one story, and one brand.
Canada Beef continues to work with over 60 core brand partners around the world to enable commercial opportunities for Canadian beef. To date, Canada Beef has executed over 180 market development programs, ensuring that for every $1 Canada Beef invests; at a minimum $6 of partner investment is leveraged.
The number of downloads of The Roundup app, a Canadian beef buying and cooking resource for smart phones and tablets, grew by about 285 percent reaching a total of 10,360 downloads. The consumer-focused Make it Beef Club continued to leverage ongoing domestic and international initiatives to grow the database of subscribers. Nearly 3,500 new members were added through a contest, leveraging the partnership of Canada Beef with Karisma Resorts. The Make it Beef Club currently has over 40,500 subscribers. A new consumer-focused website was launched in January, 2016. Preliminary results show a growing engaged audience and a more integrated communication channel for the Canadian beef brand story.
One of the most impactful means to achieve brand loyalty is through co-branding with market leaders in select priority regions or ‘market hubs’, including North America, Hispanic, Asia, and potential emerging markets.
In export markets, Canada Beef focused on strategic alignment with selected partners to communicate the Canadian beef brand to end users and through to consumers in order to strengthen their confidence and trust in Canadian beef. Key marketing programs included the industry-focused Canadian Beef Branding Series, consumer-focused Canadian Beef Culinary Series, educational youth and family cooking classes, professional chef seminars, culinary events and brand media including targeted social media campaigns.
Here at home, Canada Beef continued to host the gate-to-plate “Canadian Beef Experiences” for industry partners, and find alignments with strong national brands. Canada Beef completed year three of a three year partnership with the Canadian Football League (CFL) to build consumer brand connectivity. For example, an aligned CFL-focused partnership with PepsiCo and Overwaitea Food Group reached over 135,000 consumers.
In the 2015/16 fiscal year, Canada Beef launched its second, three year strategic roadmap to further its core objectives over the period (2015-17).
The strategy is firmly geared towards:1. Brand loyalty2. Consumers3. Value creation back to producers
The 2015/16 shift towards brand loyalty was critical for the industry to further market Canadian beef internationally. Canada Beef learned via research and market intelligence that consumers want an emotional connection to Canadian beef and that there is a need to create global co-brand partnerships.
The Canadian beef brand is proven to have meaning with consumers worldwide. More than a brand mark, it is a powerful story that reflects all that is good about our beef: “We put the best of Canada into our beef”. Global research told us consumers value our community of ranchers and farmers who tend to the cattle and land with care, hard work and resourcefulness. Your story makes a personal connection that builds relationships, trust and loyalty. The brand is your story.
Canada Beef
Global research told us consumers value our community of ranchers and farmers who tend to the cattle and land with care, hard work and resourcefulness. Your story makes a personal connection that builds relationships, trust and loyalty.
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The new study reports that marketing, managed by Canada Beef, had a benefit cost ratio of $13.50, up from $7.55 in the previous study. Along with the full study from Dr. Rude, the Agency worked with Canfax Research Services to develop two supplementary documents to pinpoint the highlights of the study and how they are applicable to the Canadian beef industry. To learn more about the study and to view the supplementary documents, visit canadabeef.ca/national-check-off.
As Canada Beef continues its three year strategy through 2017, the call to action is for the industry to work together to align and share one collective and powerful message, the Canadian beef story – the Canadian beef brand. Canada Beef will work collaboratively and share resources so the industry continues to build a global brand from a strong united front. This is the key to success.
Canada Beef invites you to join The League, to be a part of your Canadian beef brand: building consumer trust and loyalty for Canadian beef together. Help tell your story; how you are committed to do the best you can do to bring quality Canadian beef to the consumer’s table. To join The League, visit www.canadabeef.ca/theleague.
In 2015/16, social media events that were direct partnerships with Canadian brand partners garnered over 283 million views and over 74,000 posts, focusing on the Canadian beef brand, and leveraging partner resources to tell the brand story to consumers. Key highlights included brand partners McDonald’s (Mighty Angus), Subway (Prime Rib Melt), Swiss Chalet (rotisserie beef) and Montana’s (hand-carved 7 oz. steak) all using Canada Beef hosted Twitter parties as a communications platform for launching new Canadian beef menu items. Canada Beef also evolved its social media events by linking online and live events through early adoption of Periscope, a social media platform linked with Twitter that hosts live-stream video feeds. Periscope enables Canada Beef to engage consumers around the world in the Canadian beef brand, in real-time.
One of Canada Beef’s proudest accomplishments was the opening of the Canadian Beef Centre of Excellence (CBCE). Over the first year in operation, the CBCE hosted 38 specific missions, over 1,000 industry guests and enabled or leveraged approximately $145 million in commercial business.
In August 2016, the Canadian Beef Cattle Research, Market Development and Promotion Agency worked in partnership with Canfax Research Services to release a study evaluating the economic benefits from the Canadian Beef Cattle Check-off. The study, prepared by Dr. James Rude and Dr. Ellen Goddard, is an update on the 2010 Cranfield Study which had reported results ahead of the 2010 merge of the Beef Information Centre, Canadian Beef Export Federation and the National Check-off Agency.
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with six confirmed cases of bTB and one large index herd comprised of 18 premises. The CCA’s Rob McNabb participated in the CFIA’s Western Region Emergency Operations Centre, a first from an industry-government collaboration. He shared these duties with Karin Schmid and Rich Smith from Alberta Beef Producers. Overall government and industry collaboration is excellent and appreciated.
In terms of the impact to the Canadian industry, one case of bTB does not impact our trade status nor Canada’s TB-free status relative to the OIE Codes and the Canadian Health of Animals Regulations. One case can involve several positive animals but is still considered one case if through the investigation they are found to be connected. Canada’s status can be impacted if another unrelated case is confirmed within 48 months.
The CCA is monitoring the investigation and working closely with both federal and provincial officials and ministers to provide financial assistance to the producers under quarantine. We continue to communicate with CFIA on a regular basis and will update members of any developments impacting Canada’s trade status.
The U.S. national election will put president-elect Trump in the White House upon his inauguration on Friday, January 20, 2017. The tenor of Trump’s ‘America First” trade policy rhetoric during the campaign may have provided a glimpse as to the shape of things to come in 2017. The first potential issue for the beef industry arose almost immediately, when media reported that Trump’s transition team had included reinstatement of Country of Origin Labeling (COOL) as an objective.
Fortunately, CCA has close relationships with key advisors on the Trump transition team who realized that COOL is a negative policy for U.S. jobs and immediately undertook to remove any mention of COOL from the Trump trade policy agenda.
There are two key take-aways from this episode: the value of maintaining our relationships in Washington D.C. and throughout the U.S. with our U.S. allies, and the importance of Canada retaining its right to impose retaliatory tariffs if the U.S. re-introduces COOL in a manner that causes renewed discrimination against imported livestock.
There is every indication that President-elect Trump means to follow through on his campaign pledges to renegotiate or withdraw from NAFTA and withdraw from the Trans-Pacific Partnership (TPP). The CCA believes that the economic reviews and studies Trump has since ordered will demonstrate that NAFTA has been beneficial for the U.S. economy and supports hundreds of thousands, if not millions, of U.S. jobs. Nevertheless, a list of U.S. objectives to improve the agreement will likely emerge to
Submitted by Dan Darling, CCA President
I am pleased to report to you as President of the Canadian Cattlemen’s Association (CCA). There were many interesting developments in 2016, not the least of which occurred in November with the changing political landscape in the U.S. The year brought significant market access developments with the expansion of beef access to China, Mexico and Taiwan, and the successful launch of the Canadian Beef Industry Conference.
In the fall, Canada was notified that a case of bovine tuberculosis (bTB) had been found. The subsequent Canadian Food Inspection Agency (CFIA) epidemiological investigation continues in the new year. This large undertaking requires several streams of investigative work to trace the movement of animals for the past five years, and resources to complete the testing and analysis of the test results. As trace-outs and trace-ins from the original infected premises proceed producers can expect to see the number of premises quarantined to increase. However, at the same time some quarantines may also be removed. This is expected and an important part of the investigation, which is expected to take several months.
As of January, the incident numbers remain unchanged
Canadian Cattlemen’s AssociationThe CCA will work closely with Canadian government officials and the Embassy in Washington to ensure the interests of Canadian beef producers are well represented.
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Trudeau’s signature of the agreement in Brussels on October 30 and International Trade Minister Freeland introducing the implementing legislation (Bill C-30) in Parliament on October 31. This necessitated CCA to evaluate the state of work on the issue of EU approval of critical food hygiene procedures used in Canadian meat production to ensure that consumers are not exposed to potentially harmful bacteria such as E.coli. Unfortunately, the EU does not allow the use of two of the products used in Canada. Naturally, Canadian packing plants are unwilling to risk the health of Canadians to comply with European procedures. This likely means we will see only a very modest increase until the EU approves our procedures.
We are working with the Canadian Meat Council to complete and submit the necessary approval packages to the EU and we are working with our EU meat industry counterparts toward full, outcome-based equivalence recognition of Canada’s red meat system.
Following a review of the situation by CCA Foreign Trade Committee in November, we determined that despite the remaining work to be done, $600 million annual export potential exists and our history of a positive collaborative industry/government effort to achieve market access success suggests that we can resolve the EU barriers as well.
When I was invited to appear before the House of Commons Standing Committee on International Trade on November 17, I advised them that the CCA is supporting the passage of Bill C-30 and implementing the CETA with three conditions.• We will expect a commitment from the
Government of Canada to develop
justify following through on a notice to Canada and Mexico that the U.S. wishes to engage in negotiations. Trump’s position on trade provides an opportunity to renegotiate and improve the agreements. The CCA sees an opportunity to work with the new Administration on regulatory cooperation as they have signaled their intention to eliminate two regulations for every new one created. This could be an avenue to address some outdated requirements on Canadian live cattle shipments into the U.S.
The CCA will work closely with Canadian government officials and the Embassy in Washington to ensure the interests of Canadian beef producers are well represented.
The CCA will continue its efforts to create positive opportunities for Canadian beef producers. Free trade agreements like the TPP will ensure Canadian beef producers can compete fairly in a global marketplace, create jobs for Canadians and contribute to economic growth and long-term prosperity across the country.
However, recognizing that TPP approval in the U.S. appears unlikely, the CCA is recommending that Canada pursue one or both of two Plan B options passed by our CCA Foreign Trade Committee at our August semi-annual meeting. First is to ensure Canada is well positioned to be Japan’s number one priority for completion of a bilateral trade agreement and second, Canada should explore an option whereby some or all of the remaining 11 members, and possibly some new entrants, implement the TPP without the U.S.
The Canada-EU Comprehensive Economic and Trade Agreement (CETA), moved forward with Prime Minister
and fully fund a comprehensive strategy utilizing technical, advocacy and political skills to achieve the elimination of the remaining non-tariff barriers to Canadian beef.
• We expect that any EU beef or veal imported into Canada is in full compliance with Canadian food safety requirements.
• We expect that the beef sector will be afforded Government of Canada investment into both beef processing and beef producer operations to help us comply with the complexities of the EU market.
I anticipate it will likely take a few years to achieve the resolution of these technical issues, but by working together and the commitment of resources and transitional assistance from government, I believe we can get the job done.
The CCA has been actively engaged in the national Agricultural Policy Framework (APF) consultations. Our overarching recommendations are that the programs under the next APF be finalized for a seamless roll out on April 1, 2018 and that program delivery is simplified and approval processes are more transparent and consistent.
A high priority for the beef cattle sector is to ensure that the next APF enhances our competitiveness in both international markets and here in Canada. This will require a strong emphasis on research, science and innovation.
Industry and government have a shared responsibility for research that contributes to the competitiveness, innovation and sustainability of the beef cattle industry.
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Research is integral to providing science-based information to support consumer confidence and to ensure that Canada’s beef industry is globally competitive and able to take advantage of current and emerging trade opportunities.
One of the most successful programs under Growing Forward 2 is the Beef Science Cluster and we feel strongly that it should be retained and expanded. It has encouraged increased industry investment in research and allowed the beef industry to fund a more comprehensive research portfolio, including significant investments in areas like animal health and care, environmental sustainability and antimicrobial resistance.
On the APF’s environmental sustainability programming, CCA encourages government to support ranchers’ conservation actions through funding and further developing ecological service and agri-environmental programs. Programs such as these promote natural resource conservation, improve the environmental health of Canada’s landscape and build resiliency into the agriculture sector. These programs will be most successful if they are incentive-based, community delivered, and voluntary.
Fortunately, the Canadian beef sector is already a global leader in environmental sustainability. We are working to ensure the broader benefits of beef production, in terms of conservation, stewardship, and sustainability, are well understood by the Minister of Environment and Climate Change and reflected in any new policy directions.
Finally, progress continues on the National Beef Strategy with regard to increasing the check-off to $2.50 per head marketed to meet the strategy goals. Discussions between the Canadian Beef Check-off Agency and the provinces continued throughout the year and we continue to watch for developments with interest.
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presentations on Alberta livestock traceability regulations, age verification data entry, the role of premises identification, tag and technology research, as well as the complimentary support and resources available.
Another CCIA initiative in support of age verification was designed to minimize errors when entering birth date data. Since an animal can be moved through various owners and locations before its life-cycle is complete, and current regulations permit the farm of origin only to age verify an animal, a final owner may receive less than market value for an incorrectly age-verified animal at the terminal site if the farm of origin does not correct the birth-date entry error within the Canadian Livestock Tracking System (CLTS) database. To promote accuracy during age verification data entry, CCIA’s IT group enabled CLTS users to verify their data entry by opting to receive a single, daily email notification showing the previous day’s transaction submission summary.
Canadian Livestock Tracking System Database Process Enhancements
Expanding on the improvements released at the end of 2015 to support 840-series USDA tag identification (ID) numbers, CCIA has enabled system users to submit an Import event for any foreign country tag ID numbers. The supported format is 15 digits in length, starting with the country code (e.g., 554 002 123456789 for New Zealand). Now after a foreign ID tag number has had an Import event applied to it, the tag number may also be reported using Move In, Move Out, Temporary Export, Export and Retire events as well as use database functions such as Tag/Animal History Search, Export Manifest and Account Animal Inventory.
Event reporting within the CLTS database is time-sensitive and until May, it had to occur in sequence. Once approved tag dealers issued the tag, livestock operators could report Move In and Move Out, depending on provincial/territorial/federal regulations or herd management practices. Previously, if a CLTS user reported an event outside of the sequence, a database error would occur, and no other event could be associated with the tag until the error was corrected. As of May, the CLTS database began to accept animal movement event dates that occur before a tag number’s Retire event date. This change allows users to report movement data at any time, which can be critical to trace-backs that occur after an animal’s life-cycle is complete.
Three other projects:• In spring 2016, CCIA re-launched CLTS MOBO with a new design,
simpler navigation and a birthdate reporting feature for age verification reporting. Moving forward, CCIA’s IT group will continue to enhance the CLTS MOBO application by enabling more reportable animal events and an approved RFID beef tag ordering feature.
Tag Web Store Customization
The Canadian Cattle Identification Agency (CCIA) celebrated its second year as sole distributor for approved radio frequency identification (RFID) beef tags in Canada – reducing third-party data handling, maximizing data integrity, equalizing tag prices and making the full array of approved tags available online for non-breed specific beef cattle. In 2016, CCIA customized sections within the tag web store at www.tags.canadaid.ca for Canadian Limousin, Hereford and Gelbvieh producers.
Age Verification Process and Reporting Support
With the goal of supporting age verification reporting in Alberta, CCIA and its highly-specialized team of Mobile Field Representatives presented a series of complimentary livestock traceability workshops in seven locations across the province from January through March, with funding provided by Alberta Agriculture and Forestry. Each workshop featured
Canadian Cattle Identification Agency
CCIA completed the project and final report for its national Tag Retention Project – a four-year study in a variety of environments designed to determine the long-term retention rates and operability of the current set of approved RFID animal indicators used for beef cattle in Canada.
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• CLTS users are now able to apply movement events (e.g., Move In/Out, Imported, Exported and Temp Export) to approved tags that are applied to animals in Québec.
• Deadstock operators and pathology labs are now able to report animal disposal information to support a secondary Retire event on a tag (i.e., that has been previously reported as Retired in the CLTS database).
• To support animal movement reporting, CCIA’s IT team has added a vehicle module to add regular information regarding the vehicle of conveyance. This new module allows CLTS users to view, add or edit vehicle information for vehicles of conveyance.
CFIA Consultation Process on the Draft Compliance, Control and Enforecement Framework
In February, a five-person delegation went to Canadian Food Inspection Agency (CFIA) headquarters in Ottawa to meet with representatives of CFIA and Agriculture and Agri-Food Canada (AAFC) to address concerns that proposed regulatory changes were not using the Cattle Implementation Plan (CIP) as the road map to traceability.
In May, CFIA held a meeting in Calgary with select industry representatives from the CIP Committee to discuss the technical aspects of the draft regulations. The purpose for this meeting was to engage in a livestock traceability regulatory amendment dialogue, which was a facilitated, face-to-face meeting to discuss outstanding issues and concerns – i.e. to ensure shared understanding, clarity and mutually positive outcomes.
The proposed approach for CFIA’s livestock regulatory amendment is two-phased. The first phase refers to when regulations come into force. Phase two refers to two years after regulations come into force when CFIA will begin enforcing the regulations.
Traceability Symposium 2016
CCIA hosted Traceability Symposium 2016 on November 2-3, 2016 in Calgary, Alberta. This two-day event and trade show brought together governments, universities, research teams, the private sector and industry to identify gaps, share successes and lessons learned – bridging the gaps as traceability moves forward in Canada and globally. CCIA welcomed more than 200 delegates from across Canada, United States, European Union, Australia and New Zealand to this unique event. The agenda addressed traceability’s role, regulations and compliance, challenges and solutions, other assurance systems, and lessons learned. The success of the event has encouraged CCIA to host future symposiums on a schedule to be determined.
CCIA Becomes Administrator for Goats
Through 2016, CCIA continued its work with Canadian National Goat Federation (CNGF) to determine the details for a Responsible Administrator/Species relationship with CNGF ahead of proposed livestock traceability regulations that will include goats in the livestock traceability category of ruminants, which also includes beef and dairy cattle, bison and sheep.
National Tag Retention Project
CCIA completed the project and final report for its national Tag Retention
Project – a four-year study in a variety of environments designed to determine the long-term retention rates and operability of the current set of approved RFID animal indicators used for beef cattle in Canada. CCIA’s Tag Retention Project was designed to address industry’s growing concerns regarding the effectiveness and long-term viability of the types of approved tags available as well as poor tag retention, which affects the accuracy and availability of livestock traceability data, and emergency response time.
This study showed tag retention to be high in animals from birth to yearling stage. However, it also showed tag retention to be unsatisfactory for the lifetime of a mature cow. Multi-location, multi-year projects are difficult to manage and implement. Invariably, circumstances arise that alter methods and affect results. As a result, full explanation of the factors causing variation in tag retention will require more sophisticated data collection, management and analyses. CCIA looks forward to announcing a second phase for this project that will examine tag material degradation that results in tag loss when details are confirmed.
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Farm & Food Care Ontario is also working with The Ontario Mutual Insurance Association and Agriculture Adaptation Council to develop a hotspot pre-ignition fire-detection system. $150,000 has been secured to develop a durable and affordable in-barn methane and heat detection system. Prototypes are currently in development, with on-farm trials planned for next summer.
IMPACT ProgramThe IMPACT (Innovative Management and Practical Animal Care Training) program was completed in the spring of 2016, with a large suite of resources available both on and offline.
As a continuation of the IMPACT program’s online training modules, a certification in animal care is being pursued to further improve public and industry assurance on animal welfare, and allow producers to confidently demonstrate training in farm animal Codes of Practice. Other commodity partners are being sought.
The IMPACT Mobile App was also launched in 2016. This free mobile application is available for both IPhone and Android users, and contains videos, calculators, identification information and much more for a range of animal welfare subjects and species. To download, search “Farm IMPACT App” in Apple or Google Play stores.
Farm Animal HelplineThe Farm Animal Care Helpline continues to be a widely-used service. The Helpline is a confidential “farmer helping farmer” approach of advice and referral on animal care; it provides a service for people to report situations where they feel farm animals require better care, or where farmers themselves can call should they require help. Farm & Food Care Ontario received nine calls regarding beef cattle in 2016. This service operates with the assistance of Beef Farmers of Ontario, which provides representatives and cattle-specific advice on calls.
Livestock Emergency Preparedness Farm & Food Care Ontario has partnered with Beef Farmers of Ontario and Ontario Pork to improve livestock transport emergency preparedness.
A truck rollover training day in November was attended by 30 fire fighters, OPP and OSPCA officers, as well as members of the livestock community. Facilitated by Jennifer Woods – a livestock handling expert with over 25 years of experience in the industry – the session provided attendees with a better understanding of livestock management in emergency situations, as well as a chance to network and amalgamate resources.
As a Platinum Member of Farm & Food Care Ontario, Beef Farmers of Ontario plays an integral role in the organization’s success. Several initiatives over the last year relate directly to Ontario’s beef producers.
ANIMAL CARE
Farm & Food Care staff work under the direction of its Animal Care Advisory Council, which provides a forum for input, ideas, dialogue and proactive discussions of on-farm animal care issues. The council, with representation from Farm & Food Care’s platinum, gold and silver members, held three meetings in 2016.
Barn Fire PreventionIn an effort to improve barn fire awareness and prevention, Farm & Food Care Ontario has started a free lending program for FLIR cameras – devices that use thermal imaging to show differences and range in temperature. By directing them at walls, outlets, and other apertures within a structure, they can help producers detect electrical components that are overloaded or corroded. These tools come as either a separate hand-held unit, or as a smartphone plugin; both are available through this free lending program. This project was funded in part through Growing Forward 2 (GF2), a federal-provincial-territorial initiative. The Agriculture Adaptation Council assists in the delivery of GF2 in Ontario.
Farm & Food Care
Farm & Food Care Ontario has partnered with Beef Farmers of Ontario and Ontario Pork to improve livestock transport emergency preparedness.
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Farm & Food Care Ontario has also been working with trucking companies, commodity organizations and insurance companies to gather truck rollover emergency resources in Northern and Southern Ontario. These resources are being compiled for responder use.
Ground Current and Stray VoltageIn consultation with the Ontario Federation of Agriculture, Christian Farmers Federation of Agriculture, Farm & Food Care Ontario and other agricultural partners, Hydro One launched a Rapid Response Team in September to more effectively deal with on-farm ground current issues.
Stray voltage from underground electrical systems can have a detrimental effect on farm animals – particularly cattle – and has been an ongoing issue in some areas of the province. More information about stray voltage and the Rapid Response Team is available on Hydro One’s website: www.HydroOne.com. The Animal Care TeamFarm & Food Care Ontario was pleased to welcome Morgan Ellis and Brent Royce to the Animal Care team in 2016. Their work will contribute to ongoing and other new projects in the coming year.
ENVIRONMENT
Farmland Rental Agreements A series of resources promoting land stewardship through written farm-rental agreements has been developed. Centered on www.FarmlandAgreements.ca, renters and landlords can access videos, sample lease agreements, soil-health checklists, information on building soil health, and more. This resource was promoted at events and presentations
throughout the second half of 2016, and will continue to be featured throughout the coming year.
Soil Leadership A Soil Health Roadshow featuring six stops across southwestern Ontario and attracting 280 farmers ran through the spring of 2016. Topics covered in the sessions ranged from the use of minimum tillage and cover crops to an introduction to the Great Lakes Agricultural Stewardship Initiative cost-share program. The Roadshow was made possible in part through partnerships with the Ontario Ministry of Agriculture, Food and Rural Affairs, as well as local Conservation Authorities. Soil Health workshops will be held in central Ontario in 2017.
PUBLIC OUTREACH
Speaker TrainingProactive communication is critical to the continued success of Canadian agriculture. With this in mind, Farm & Food Care Ontario ran 10 speaker training sessions for farmers, agribusiness professionals, veterinarians and students in 2016 as well as a media training session and a webinar for 4-H members prior to the Royal Agricultural Winter Fair.
Breakfast on the FarmTwo Breakfast on the Farm events were held in 2016. The first was Veldale Farms, a dairy and grain farm in Woodstock, while the second event – aptly renamed “Breakfast from the Farm” – brought the farm to Kitchener-Waterloo Oktoberfest. Each event featured a free breakfast for the first 2,000 attendees and provided a unique chance for members of Ontario’s agriculture community to communicate directly with the public. Applications for 2017 host farms are currently being
accepted; the application is available through www.FarmFoodCareON.org.
Local Food WeekWith over 38 events, 1.3 million impressions on Twitter and a lot of media coverage, Farm & Food Care and Foodland Ontario were proud to support another week of Local Food Week celebrations. The #loveONTfood contest was held from June 6th to 12th. Participants could enter by sharing a photo on Instagram or Twitter showcasing their love for local food and adding the hashtag #loveONTfood. The advertising campaign for the contests generated 20,000 impressions, and 519 entries were received.
Farm & Food Care and many other representatives of Ontario’s food and agriculture industry visited downtown Toronto for the Queen’s Park Farmers’ Market, showcasing the province’s bounty to decision makers and government employees. Farm & Food Care staff engaged visitors about food and farming, and distributed The Real Dirt on Farming booklet.
Ontario Agriculture WeekFarm & Food Care Ontario ran several events during this year’s Ontario Agriculture Week, including a food influencer tour out of Ottawa and a Twitter Party. 190 people joined the conversation about local food and everything agriculture, creating a reach of nearly 6.2 million impressions. A photo contest highlighting Ontario food and agriculture was also held, which received 390 entries from across the province. Submitted entries had to celebrate Ontario Agriculture Week. Prizes were awarded to 13 entrants.
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Importers and Exporters and the retail and foodservice sector.
The role of the Check-off division is to provide oversight and accountability on the Agency’s regulatory requirements under the Farm Products Agencies Act and the Agency’s Proclamation, as well as oversight on the collection and remittance of the national check-off dollars collected. These dollars are collected in partnership with the provincial associations and agency partners, and thus a significant portion of the Check-Off division’s mandate is to work with and support those provincial partners.
Canada Beef, operating as an internal division of the Agency provides leadership on national and global marketing and promotion activities on behalf of the Canadian beef industry. The Beef Cattle Research Council (BCRC), a division of the Canadian Cattlemen’s Association, is an external partner and is the lead on determining research priorities for the beef cattle industry and is responsible for those national check-off funds allocated to research.
In 2015/16 the total national check-off dollars collected was approximately $6,803,000 (and $918,000 on imports). Of the total check-off dollars, each province allocates a portion to Canada Beef, BCRC and in some cases to provincial activities related to research and marketing.
A study evaluating the economic benefits from the Canadian Beef Cattle Check-off was completed June 2016 and marks the second analysis of the effectiveness of national check-off expenditures on producers’ economic well-being. The study reports that on average from 2011/12 to 2013/14, every check-off dollar invested in national research and marketing activities resulted in a benefit cost ratio (BCR) or 14:1 or a $14 of benefit for Canadian cattle producers. This is up from the $9 average between 2005 and 2008. Research showed a benefit of $34.5 for every dollar, and marketing showed $13.5 in benefit.
While the Canadian Beef Cattle Check-off provides the core industry funding for research and marketing programs, it does not fully cover the costs of all programs and activities. Supplementary funding is obtained by leveraging the Canadian Beef Cattle Check-off, attracting on average $3 for every $1 for research and $1 for every $1 for marketing between 2011/12 and 2013/14.
The National Beef Strategy was developed, and continues to be driven, by the industry with the aim to achieve targeted industry goals that are aligned with the vision and mission under four key pillars. The pillars identify key areas of focus where industry stakeholders will work together to collectively achieve the outcomes identified. Under each focus area, specific outcomes have been defined that work towards meeting the
The Canadian Beef Check-off Agency (the Agency) manages and administers the Canadian Beef Cattle Check-Off. By working with core partners, the Agency ensures that check-off dollars are invested into research, market development and promotion programs that deliver measurable value to the Canadian beef industry. The Agency is responsible for communicating the value of the check-off investment, as well as training and education of producers and funding partners, regulatory management, collection and administration of check-off dollars.
In 2016, the Agency began a transformation on the advice of the provinces that collect and remit check-off dollars for national programming. This transformation included the creation of a separate and distinct check-off administration division, and the hiring of a dedicated General Manager to oversee the division. This allows for transparency and focused management of the Agency’s responsibilities to the Farm Products Council of Canada and the Provincial funders that partner with the Agency and most importantly the producers.
The Check-Off division reports directly to the Agency’s Board of Directors, consisting of primary producers from the provinces and representation from the Canadian Meat Council, the Canadian Association of
National Check-off AgencyBy working with core partners, the Agency ensures that check-off dollars are invested into research, market development and promotion programs that deliver measurable value to the Canadian beef industry.
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goals established by industry. The goals established are benchmarks to measure industry performance between 2015 and 2020.
Discussions around an increased Canadian Beef Cattle Check-off under the National Beef Strategy continued through 2015/16, with the goal of increasing the check-off to $2.50 per head marketed. The need for the check-off increase comes from the goals set out in the National Beef Strategy, the reduced buying power of the current check-off dollar, and the desire to ensure a sustainable future for our industry.
The increasing global demand for protein has presented the Canadian beef industry with an opportunity to position itself strategically and increase demand for its beef products. Seizing this opportunity in a time of tight supply and reduced marketing is a challenge that the industry can overcome by working together. The spirit of collaboration is the anchoring point of the National Beef Strategy, developed for industry by industry.
Looking forward, the Agency will remain focused on meeting the goals of our provincial partners, and continue to drive value for industry check-off investment.
Ontario Cattle Feeders’ Association
We have concentrated on the strategic long-term direction for the program. At the same time, we’re continuously promoting the brand and working to increase our market share. Securing additional markets, both domestically and internationally, has been a high point of our efforts.
During the past few years, we laid the groundwork for expansion by analyzing and identifying markets and partners in those various markets who share our values and vision for the brand. We have followed the plan for growth that John Baker set out when he joined our team as Director of Brand Management and Business Development. John has done an excellent job fostering strong business relationships in each of our markets, which have provided additional supply contracts for our Ontario packers. This growth stems from our original blueprint for the program. We aim to create more demand for greater volumes of Ontario beef. And it is not just about benefitting our producers. Increasing our beef production provides benefits to our communities, the agricultural sector and our provincial economy.
We have concentrated on the strategic long-term direction for the program. At the same time, we’re continuously promoting the brand and working to increase our market share. Securing additional markets, both domestically and internationally, has been a high point of our efforts.
Our brand is making good progress in important international markets such as Japan, Saudi Arabia and the United Arab Emirates. And most recently, we have made inroads into China as Ontario (Canada) Corn Fed Beef was shipped for the first time to Shanghai in late 2016.
These markets are extremely important for our sector and particularly for the processors of Ontario. They offer Ontario’s beef industry a key difference and these markets also allow for some seasonal opportunities when it comes to marketing beef. For example, the peak demand for primal cuts of beef in Canada generally starts in May and runs through September. In countries such as Saudi Arabia, the demand for these same cuts is lower during these months. Their demand for beef begins to pick up as our seasonal demand drops off. This scenario provides a great
Submitted by Jim Clark, OCFA Executive Director
While it has been difficult over the past few years to maintain a steady course amid the highs and the lows of the marketplace, we continue to be focussed on our number one goal. We are dedicated to keeping the market share we have built for beef produced in Ontario, and we’re looking forward to expanding Ontario Corn Fed Beef, the signature brand of the Ontario Cattle Feeders’ Association.
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Another issue that has been top of mind in the past year is the discussion around sustainability. When I look at today’s market, it seems to defy the whole sustainability concept. Given the impact of the losses, I think we need to redefine what sustainability is all about. There are many parts to sustainability. There’s the environmental side that includes issues such as renewable resources and resource depletion. I tend to look at the economic sustainability as it relates to the ability to support the family farming operation and the future generations.
Then there is the social side of sustainability that includes the animal welfare issues. Consumers look at farmers as being “big agriculture” now. But these are traditional family farms that have grown over time like any other businesses. The problem is that those who take the negative view are influencing others with misinformed opinions that are not based on the facts. In response, we need to be truly grounded in what we’re saying and what we do. This is the approach that we are taking with our promotional materials and social media messaging. The aim is to provide clarity and credibility about what we do. We have tried to connect with the consumer in a way that builds confidence so that when they buy the product or see the logo, they understand what is behind the label. It’s not just a logo on a package of meat; it’s our promise that everyone involved in the production of our beef has taken the time and the care that is required to produce a consistently great-tasting product.
While on the topic of sustainability, the Ontario Corn Fed Beef Program was selected as the recipient of the 2016 Beef Industry Innovation and Sustainability Award for the development of producer led branded beef programs that leverage the Canadian Beef Advantage to create value that contributes greatly to the sustainability of the Canadian beef industry. This award was presented in March of 2016 by the Canadian Cattlemen’s Association.
In closing, I would like to thank everybody in the entire agricultural sector who have partnered with us and supported our program. I would also like to express our appreciation for the support we have received from Ontario’s beef industry for continuing to support the direction of the Ontario Corn Fed Beef Program brand. A special thanks goes to the Beef Farmers of Ontario, it’s extremely important that we have developed such a good working relationship that has flourished and grown over the years. As well I would like to thank the Province of Ontario for the continued support of the brand and the beef sector in general. I look forward to our continued efforts as we make the Ontario Corn Fed Beef Program a growing success in Canada’s agri-food industry.
opportunity to maintain the flow of product.
In Japan, Ontario Corn Fed Beef is featured in 40 Kinsho stores in Osaka. We have been working to raise the awareness of their customers by partnering in cooking schools and supermarket trade shows. We have also teamed up with their supplier, Prima Meat Packers, to further showcase the Ontario Corn Fed Beef product line in the Japanese retail market. The feedback from the Japanese consumer has been encouraging. They have a positive image of Ontario’s natural environment. And it all comes together when you can also offer a tender and delicious beef product. We have also hosted delegations of Japanese customers to explain our program from farm to fork, including the various food safety aspects. We’ve been working extremely hard to build confidence for our brand and these efforts are paying off as sales of our beef have continued to grow in a positive manner in these markets.
Securing additional markets and selling more beef is just one part of our growth plan. We are also strengthening our relationships across the entire agriculture sector. This past year, the Grain Farmers of Ontario further stepped up and helped us to promote our program. And it’s just not about beef. It’s also about promoting other feed products that are grown in Ontario as well. Cash croppers, and farmers in general, are all part of the production system that results in great-tasting Ontario Corn Fed Beef products.
While looking back at our successes, it is important to note that the gains are tempered by the extremely challenging year that our sector has faced. What we’re going through now would be comparable to the fallout after the BSE discovery. The losses have caused such an erosion of equity in the business. Some in the feedlot sector have seen some of their biggest losses ever. Meanwhile, the cow-calf producers are seeing prices drop for their calves and yearlings. It’s extremely important that we don’t lose all the momentum we had on the cow-calf side. Hopefully, markets will continue to see some rallies in 2017, but it remains a major concern because a lot of beef farmers are facing some pretty challenging times right now.
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1983 $496,350 1995 $5,203,392 2007 $6,183,703 1984 $1,559,367 1996 $5,816,257 2008 $6,512,681 1985 $2,111,466 1997 $6,078,412 2009 $6,824,578 1986 $2,803,336 1998 $6,480,147 2010 $7,131,542 1987 $3,470,057 1999 $6,743,918 2011 $7,122,407 1988 $3,629,155 2000 $7,070,770 2012 $7,311,131 1989 $4,353,020 2001 $5,484,329 2013 $6,876,848 1990 $4,683,492 2002 $4,928,346 2014 $7,347,626 1991 $4,267,196 2003 $5,218,720 2015 $7,063,727 1992 $4,882,453 2004 $5,306,236 2016 $7,103,567 1993 $5,047,632 2005 $5,265,078 Dec - 16 $7,294,123 1994 $5,470,264 2006 $5,538,243
Fund Balance at March 31st, 2016Note:
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.
INCOME March 31
Deduction Income Investment Income Total Income
1982-90 $ 4,193,421 $ 1,840,250 $ 6,033,670
1990-91 122,045 550,719 672,764
1991-92 122,690 516,580 639,270
1992-93 129,619 359,584 489,203
1993-94 118,522 320,641 439,164
1994-95 117,214 272,497 389,711
1995-96 116,336 395,416 511,751
1996-97 122,363 280,360 402,723
1997-98 129,849 285,801 415,650
1998-99 119,662 330,511 450,173
1999-2000 117,271 291,267 408,537
2000-2001 117,586 461,611 579,197
2001-2002 104,694 210,047 314,741
2002-2003 116,558 196,465 313,023
2003-2004 100,233
186,020
286,253
2004-2005 106,275 170,477 276,752
2005-2006 115,188 222,225 337,413
2006-2007 103,033 254,962 357,995
2007-2008
102,652
296,185
398,837
2008-2009 113,422 265,844 379,267
2009-2010 100,248 262,957 363,205
2010-2011 109,882 264,454 374,336
2011-2012 105,346 269,320 374,666
2012-2013 106,068 244,642 350,710
2013-2014 112,525 245,792 358,316
2014-2015 110,083 254,063 364,146
2015-2016 109,267 241410 350,677
EXPENSE March 31
Claims Paid Less Recoveries
Fund Expenses Total Expenses
1982-90 $ 1,144,988 $ 230,190 $ 1,375,178
1990-91 1,062,592 26,468 1,089,060
1991-92 (4,128) 28,141 24,013
1992-93 297,706 26,318 324,024
1993-94 0 16,531 16,531
1994-95 631,307 25,276 656,583
1995-96 (140,770) 39,655 (101,115)
1996-97 84,964 55,604 140,568
1997-98 1,040 12,874 13,915
1998-99 135,420 51,087 186,507
1999-2000 7,534 74,151 81,685
2000-2001 2,086,337 79,302 2,165,639
2001-2002 678,357 192,367 870,724
2002-2003 (39,760) 63,465 23,705
2003-2004 131,342 66,473 197,815
2004-2005 247,787 69,989 317,776
2005-2006 0 64,248 64,248
2006-2007 (350,000) 62,535 (287,465)
2007-2008
0
69,859
69,859
2008-2009 0 67,631 67,631
2009-2010 (31,044) 87,295 56,251
2010-2011 235,110 148,360 716,338
2011-2012 69,371 116,571 402,483
2012-2013 657,227 127,766 784,993
2013-2014 (290,926) 179,348 (111,578)
2014-2015 164,452 179,770 344,222
2015-2016 387,136 227,524 614,660
Ontario Beef Cattle Financial Protection Fund
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Deer Lake Farms
Ontario’s abundant natural resources and high quality feed grains and forages contribute to exceptional beef production in the province.
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Deer Lake Farms
FINANCIALS
2016 Audited Financial StatementsFor the year ended December 31, 2016
2017 Preliminary Budget
Ontario’s abundant natural resources and high quality feed grains and forages contribute to exceptional beef production in the province.
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BEEF FARMERS OF ONTARIOINDEX TO THE FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Page
INDEPENDENT AUDITOR'S REPORT 3
FINANCIAL STATEMENTS
Statement of Financial Position 4
Statement of Changes in Net Assets 5
Statement of Operations 6
Statement of Cash Flows 7
Notes to the Financial Statements 8 - 12
Schedule of Expenses 13
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INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of: Beef Farmers of Ontario
We have audited the accompanying financial statements of Beef Farmers of Ontario, which comprise thestatement of financial position as at December 31, 2016 and the statements of changes in net assets,operations and cash flows for the year then ended, and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not for profit organizations and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditor's ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted ouraudit in accordance with Canadian generally accepted auditing standards. Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, these financial statements present fairly, in all material respects, the financial position of BeefFarmers of Ontario as at December 31, 2016 and the results of its operations and its cash flows for the yearthen ended in accordance with Canadian accounting standards for not for profit organizations.
Guelph, Ontario Chartered Professional AccountantsFebruary 21, 2017 Licensed Public Accountants
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BEEF FARMERS OF ONTARIO
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2016
2016 2015
A S S E T SCURRENT ASSETS
Cash $ 1,092,869 $ 1,162,691Accounts and grants receivable 191,666 174,475Accrued checkoff fees receivable 496,509 478,401Investments (note 4) 2,671,084 2,601,768Inventory - supplies 31,870 29,721Inventory - livestock (note 11) 45,789 44,684Prepaid expenses 18,518 20,301
4,548,305 4,512,041
CAPITAL (note 5) 290,433 291,495
$ 4,838,738 $ 4,803,536
L I A B I L I T I E S
CURRENT LIABILITIESAccounts payable and accrued liabilities $ 372,702 $ 430,090Accrued national checkoff payments 62,064 59,800Deferred revenue (note 6) 2,300 2,450Research trust liability - New Liskeard (note 11) 95,541 107,608Government remittances payable 14,414 37,361
547,021 637,309
N E T A S S E T S
NET ASSETSInternally restricted building repair fund (note 2g) 116,117 116,117Internally restricted Elora Research Station fund (note 2g) 857,000 675,000Internally restricted research and projects fund (note 2g) 384,006 70,406Unrestricted 2,934,594 3,304,704
4,291,717 4,166,227
$ 4,838,738 $ 4,803,536
See notes to the financial statementsPage 4
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BEEF FARMERS OF ONTARIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2016
INTERNALLYINTERNALLYRESTRICTED INTERNALLYRESTRICTED ELORA RESTRICTED
BUILDING RESEARCH RESEARCHREPAIR STATION AND PROJECTS UNRE-FUND FUND FUND STRICTED 2016 2015
(note 2g) (note 2g) (note 2g)
BALANCE, beginningof year $ 116,117 $ 675,000 $ 70,406 $ 3,304,704 $ 4,166,227 $ 4,117,811
Excess of income overexpenses 0 0 0 125,490 125,490 48,416
TRANSFERS (note 15) 0 182,000 313,600 (495,600) 0 0
BALANCE, end of year $ 116,117 $ 857,000 $ 384,006 $ 2,934,594 $ 4,291,717 $ 4,166,227
See notes to the financial statementsPage 5
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BEEF FARMERS OF ONTARIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2016
2016 2016 2015BUDGET ACTUAL ACTUAL(note 7)
INCOMEFees $ 3,822,000 $ 3,747,231 $ 3,761,773Less: Commissions to firms making deduction (51,000) (44,485) (46,928)
7 day dealer refund (195,000) (214,351) (218,235)3,576,000 3,488,395 3,496,610
Investment income (loss) 100,000 77,141 (60,519)Magazine revenue 65,000 84,951 66,405Other income 19,600 23,631 16,628
3,760,600 3,674,118 3,519,124Toronto Stockyards Land Development Board
(note 12) 1,058,454 1,059,863 1,037,719Grants (note 13) 0 98,268 55,038
4,819,054 4,832,249 4,611,881
EXPENSESAssociation activities - budgeted (schedule 1) 3,374,076 3,118,752 2,965,376Operations budgeted (schedule 1) 1,728,000 1,588,007 1,598,089
5,102,076 4,706,759 4,563,465
EXCESS OF INCOME OVEREXPENSES for the year $ (283,022) $ 125,490 $ 48,416
See notes to the financial statementsPage 6
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BEEF FARMERS OF ONTARIO
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIESExcess of income over expenses for the year $ 125,490 $ 48,416Items not requiring an outlay of cash
Amortization 15,145 14,614140,635 63,030
Changes in non-cash working capitalAccounts and grants receivable (17,191) 168,074Accrued checkoff fees receivable (18,108) 133,481Inventory - supplies (2,149) (7,535)Inventory - livestock (1,105) 3,158Prepaid expenses 1,783 15,369Accounts payable and accrued liabilities (57,388) 220,124Accrued national checkoff payments 2,264 6,872Deferred revenue (150) 2,450Government remittances payable (22,947) (11,906)Research trust liability - New Liskeard (12,067) 44,062
(127,058) 574,14913,577 637,179
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIESAdditions to capital assets (14,083) (5,979)Investments (69,316) 67,441
(83,399) 61,462
NET (DECREASE) INCREASE IN CASH (69,822) 698,641
NET CASH, BEGINNING OF YEAR 1,162,691 464,050
NET CASH, END OF YEAR $ 1,092,869 $ 1,162,691
See notes to the financial statementsPage 7
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BEEF FARMERS OF ONTARIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
1. PURPOSE OF THE ORGANIZATION
Beef Farmers of Ontario is a tax exempt body established by Provincial legislation to support thebeef cattle industry in Ontario through promotion, research and other activities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The organization is subject to the Ontario Business Corporations Act. The financial statementshave been prepared in accordance with Canadian accounting standards for not for profitorganizations and include the following significant accounting policies:
(a) REVENUE RECOGNITION
The organization follows the restricted fund method of accounting for contributions inwhich externally restricted contributions are recognized upon receipt in the appropriatefund corresponding to the purpose for which they were contributed. Externally restrictedcontributions of the unrestricted fund are recognized as revenue when the relatedexpenditure occurs. Unrestricted revenues are recognized in the unrestricted fund whenreceived or receivable and collection is reasonably assured.
(b) INVENTORY
Inventory is stated at the lower of cost, using the weighted average cost basis, and netrealizable value.
(c) CAPITAL ASSETS
Capital assets are recorded at cost and amortized on the basis of their estimated usefullife using the following methods and rates:
Building and building renovations - 4% declining balanceOffice furniture and equipment - 20% declining balanceComputer equipment - 30% declining balanceComputer software - 50% declining balance
(d) IMPAIRMENT OF LONG LIVED ASSETS
Long lived assets are tested for recoverability whenever events or changes incircumstances indicate that their carrying amount may not be recoverable. Animpairment loss is recognized when the carrying value exceeds the total undiscountedcash flows expected from their use and eventual disposition. The amount of theimpairment loss is determined as the excess of the carrying value of the asset over itsfair value.
(e) USE OF ESTIMATES
The preparation of financial statements in conformity with Canadian accountingstandards for not for profit organizations requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities, the disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the year. The significant areas whereestimates have been used are the accrued checkoff fees receivable, amortization andaccrued national checkoff payments payable. Actual results could differ from thoseestimates.
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BEEF FARMERS OF ONTARIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) FINANCIAL INSTRUMENTS
Measurement of financial instrumentsThe organization initially measures its financial assets and liabilities at fair value.
The organization subsequently measures all its financial assets and financial liabilities atamortized cost, except for its investments, which are measured at fair value. Changesin fair value are recognized in net surplus.
Financial assets measured at amortized cost include cash, accounts and grantsreceivable and accrued checkoff fees receivable.
Financial liabilities measured at amortized cost include accounts payable and accruedliabilities, accrued national checkoff payments and research trust liability - New Liskeard.
The organization’s financial assets measured at fair value include investments.
ImpairmentFinancial assets measured at amortized cost are tested for impairment when there areindicators of impairment. If an impairment has occurred, the carrying amount offinancial assets measured at amortized cost is reduced to the greater of the discountedfuture cash flows expected or the proceeds that could be realized from the sale of thefinancial asset. The amount of the write-down is recognized in net surplus. Thepreviously recognized impairment loss may be reversed to the extent of theimprovement, directly or by adjusting the allowance account, provided it is no greaterthan the amount that would have been reported at the date of the reversal had theimpairment not been recognized previously. The amount of the reversal is recognized innet surplus.
Transaction costsThe organization recognizes its transaction costs in net income in the period incurred.However, financial instruments that will not be subsequently measured at fair value areadjusted by the transaction costs that are directly attributable to their origination,issuance or assumption.
(g) FUND ACCOUNTING
Internally restricted building repair fundThe internally restricted building repair fund reports resources available for theorganization's building repair activities.
Internally restricted Elora Research Station fundThe internally restricted Elora Research Station fund reports resources allocated by theorganization to cover the industry share of a new cow calf facility at the Elora ResearchStation. Revenues in this fund are an apportionment of checkoff fees received.
Internally restricted research and projects fundThe internally restricted research and projects fund reports resources allocated by theorganization for research and project commitments in future years.
Unrestricted fundThe unrestricted fund reports resources available for the organization's general operatingactivities.
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BEEF FARMERS OF ONTARIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3. FINANCIAL INSTRUMENTS
Credit risk management
Unless otherwise noted, it is management's opinion that the organization is not exposed tosignificant interest, currency or credit risks arising from their financial instruments.
The extent of the organization's exposure to these risks did not change in 2016 compared to theprevious period.
The organization does not have a significant exposure to any individual customer or counterpart.
4. INVESTMENTS
Investments consist of a combination of income funds and exchange-traded funds.
2016 2015
Beginning balance $ 2,601,768 $ 2,669,209Realized gains in the year 123,393 84,536Broker fees (12,157) (9,225)Unrealized loss on adjustment to market value (41,920) (142,752)
$ 2,671,084 $ 2,601,768
5. CAPITAL ASSETSAccumulated Net Net
Cost Amortization 2016 2015
Land $ 94,000 $ 0 $ 94,000 $ 94,000Building 210,317 128,070 82,247 85,674Building renovations 204,515 117,957 86,558 90,165Office furniture and equipment 125,362 117,943 7,419 6,614Computer equipment 178,544 159,041 19,503 13,631Computer software 42,574 41,868 706 1,411
$ 855,312 $ 564,879 $ 290,433 $ 291,495
6. DEFERRED REVENUE
Deferred revenue consists of sponsorships related to the annual meeting:
2016 2015
Beginning balance $ 2,450 $ 0Less: amount recognized in the year (2,450) 0Add: amount received relating to the following year 2,300 2,450
Ending balance $ 2,300 $ 2,450
7. BUDGET FIGURES
The budgeted figures are presented for comparison purposes as prepared and approved by theBoard, reclassified to conform to the current financial statement presentation. They have notbeen audited or reviewed by the auditor.
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BEEF FARMERS OF ONTARIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
8. NATIONAL ADVERTISING PROGRAM
The organization pays $1 per head to the National Beef Cattle Research Market Developmentand Promotion Agency and for the national beef advertising and promotion campaign, andsubsequently receives 50 cents per head for association activities which are aligned with thenational proclamation.
9. FEEDER FINANCE PROGRAM
The organization has embarked on a joint program with the Ontario Ministry of Agriculture, Foodand Rural Affairs, the purpose of which is to guarantee a portion of loans to feeder cattle financeco-operatives to purchase cattle. The expenses are not to exceed $55,000 in the provincialgovernment's fiscal year and are fully recoverable from the Ministry.
10. COMMITMENTS
The organization has committed to funding up to $1.5 million towards the new cow calf facility atthe Elora Research Station, pending approval for government funding. The organization hasallocated $857,000 to the internally restricted Elora Research Station fund for this purpose, withthe first payment of $200,000 being made in the current year.
11. NEW LISKEARD RESEARCH HERD
During 1994, the organization entered into an agreement with the Ontario Ministry of Agriculture,Food and Rural Affairs in which the organization agreed to purchase the beef cattle researchherd in New Liskeard. The purchase took place over a period of years during which theorganization paid for the annual crop of calves born and continues to receive the proceeds fromsale of these animals. Any excess proceeds over time must be used for beef research.
12. TORONTO STOCKYARDS LAND DEVELOPMENT BOARD
The former Toronto stockyards land has been developed as a commercial rental property by theToronto Stockyards Land Development Board. The organization receives a dividend from thisorganization.
13. GRANT REVENUE
Grant revenue relates to the following programs:2016 2015
Feeder Finance Program (note 9) $ 36,213 $ 43,038Northern Expansion project (note 14) 62,055 12,000
$ 98,268 $ 55,038
14. PARTIALLY FUNDED PROJECTS
These programs have agreements whereby the organization will fund a portion of theexpenditures, and an external funder will reimburse the remaining portion. Thus, the internallyfunded portion of these expenses are presented as Organization Activities - Budgeted and theremainder are presented as Organization Activities - Funded by Grants.
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BEEF FARMERS OF ONTARIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
15. INTERFUND TRANSFER
During the year, the organization made an interfund transfer from unrestricted funds of $313,600(2015 - transfer to unrestricted funds of $89,412) to the internally restricted research and projectsfund. The remaining balance in the internally restricted research and projects fund of $384,006 isfor Canadian beef cattle research commitments in future years. The organization also made aninterfund transfer from unrestricted funds of $182,000 (2015 - $0) to the internally restrictedElora Research Station fund to fund a new cow calf facility at the Elora Research Station.
16. CORRESPONDING FIGURES
Certain figures presented for corresponding purposes have been reclassified to conform to thecurrent year's presentation.
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BEEF FARMERS OF ONTARIO
SCHEDULE OF EXPENSES Schedule 1
FOR THE YEAR ENDED DECEMBER 31, 2016
2016 2016 2015BUDGET ACTUAL ACTUAL(note 7)
ASSOCIATION ACTIVITIES - BUDGETEDAnnual meeting (net of revenue $44,135 - 2016,
$44,224 - 2015) $ 175,000 $ 169,957 $ 170,443Grants and memberships - Canadian
Cattlemen's Association 492,076 489,918 518,303- National checkoff (net of veal rebate $0 -
2016, $34,796 - 2015) (note 8) 465,500 446,640 438,730- Counties 225,000 214,328 221,227- Miscellaneous grants 24,750 36,150 23,500- Farm & Food Care Ontario 45,000 45,000 45,000- OAFB 40,000 40,000 40,000
Communications (net of revenue $5,427 - 2016,$8,081 - 2015) 218,000 196,701 223,019
License fee enforcement 110,000 105,089 105,790Veal projects 0 0 31,480Lobbying 135,000 159,164 153,668Breeder finance support 6,000 1,413 3,732Industry development and research 950,000 763,077 487,148OCFA support for marketing corn-fed beef 477,750 420,443 500,544Regional marketing initiative 0 29,347 0Feedlot/Cow-calf Committee 10,000 1,525 2,792
$ 3,374,076 $ 3,118,752 $ 2,965,376
OPERATIONS - BUDGETEDElected officers' remuneration $ 220,000 $ 228,416 $ 234,110Elected officers' expenses 205,000 199,694 204,702Salaries and benefits 877,000 873,225 816,613Staff expenses 60,000 55,294 48,923Postage 16,000 14,492 13,550Premises costs 210,000 83,551 139,692Office 70,000 62,609 81,998Telephone and fax 26,000 28,227 24,555Legal 15,000 14,130 5,419Audit 13,000 12,300 13,200Bad debts 0 924 713Amortization 16,000 15,145 14,614
$ 1,728,000 $ 1,588,007 $ 1,598,089
See notes to the financial statementsPage 13
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Sheet2
Page 1
2017INCOME BUDGET
Check-off IncomeLicense Fees (Gross) 3,396,060$ Less:Other provinces fees 196,787CCA 382,000 CCA Legal Assessment 50,000 National Check-off 799,818 Commissions 51,000 Seven Day Dealer Refund 210,000 NET CHECK-OFF INCOME 1,706,455$
Other IncomeInterest/Investment Income 75,000$ Toronto Stockyards L.D.B. 1,081,060 Lease Revenue 17,000 Brand Registration 600 SUBTOTAL 1,173,660$
TOTAL NET INCOME 2,880,115$
EXPENSESAdministrative & GeneralElected Officers Remuneration 220,000$ Elected Officers Expenses 190,000 Net Salaries and Benefits 940,000 Staff Expenses 65,000 Staff Training 7,000 Postage 16,000 Premise Costs 130,000 Office Supplies/Equipment Rentals 65,000 Telephone & Fax 27,000 Legal 15,000 Audit & Accounting Services 13,000 Amortization 16,000 Annual Meeting - Hotel & Voting Delegates 175,000 SUBTOTAL 1,879,000$
2017 Preliminary Budget
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BFO ANNUAL REPORT 2017 81
Sheet2
Page 2
2017BUDGET
MembershipsOACC/AAC 1,150$ FFC/AFX/CFI 61,000 OAFE 500 OFA/CFFO 4,000 OFC 4,600 OAFB 40,000
SUBTOTAL 111,250$
GrantsCounty Grants and Insurance 225,000$ Miscellaneous 20,000
Communications 135,000 Lobbying Expense 160,000 Tradeshows 10,000 License Fee Enforcement 110,000 SUBTOTAL 660,000$
IndustryIndustry Development, Market Development, VBP 250,000$ Research 200,000 Ontario Corn Fed Beef Marketing 399,909 Breeder Finance Co-op Program Support 5,000 Feedlot/Cow-Calf/Government Relations Committees 10,000 SUBTOTAL 864,909$
TOTAL OPERATING EXPENSES 3,515,159$
PROJECTSElora Research Barn 600,000$ Regional Marketing Initiative 600,000
SUBTOTAL 1,200,000$
RETURNED FROM NCOA 399,909
GAIN /LOSS ON OPERATIONS (1,435,135)$
EXPENSES - CONTINUED
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82 BFO ANNUAL REPORT 2017
Saunders Family
The Tradition Some folks just don’t get it.They think owning cattle makes no sense.It takes too much time, too much equipment,not to mention the expense. But the fondest memories of my life- they might think sound funny -were made possible by Mom and Dad,‘cause they spent the time and spent the money. You see, the most important lessonshelping values grow so strong,come from loving cattleand passing that tradition on.
- Don Bishop
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1.866.370.2333www.ontariobeef.com
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