M A N A G I N G C H A N G E 2 0 1 7

About Us

How the System Works

Proposed Animal Identification and Livestock Traceability Regulatory Amendments

General Manager’s Report

Board Chair’s Report

M A N A G I N G C H A N G E

Research and Development Cluster

Information Technology

Preparation for Proposed Animal Identification and Livestock Traceability Amendments

Client Services and Technical Support

Special Acknowledgments

Statistics and Reference

Project Funding

Board Remuneration, Attendance and Related Expenses

Governance Practices

Board of Directors

Financial Statements

T A B L E o f C O N T E N T S

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C A N A D I A N C A T T L E I D E N T I F I C A T I O N A G E N C Y ( C C I A )is a not-for-profit, industry-initiated and led organization incorporated to establish a national livestock identification program and traceability initiatives to support efficient trace back and containment of serious animal health and food safety concerns by means of the National Livestock Identification Program under the Health of Animals Act.

The agency is led by a board of directors representing livestock organizations across Canada, including: livestock producers, auction markets, livestock dealers, feedlots, veterinarians and processors. CCIA wholly owns and manages the Canadian Livestock Tracking System (CLTS) database, which is a trace-back system that maintains the data associated with approved animal indicators applied to ruminant livestock in the value chain. In technical terms, the CLTS is a modular Oracle database that interfaces with other systems. External users access the database through a web-based interface, which is referred to as the CLTS website at www.clia.livestockid.ca

The CLTS database allows livestock operators and regulated parties in the value chain of custody to record and submit information pertaining to the three basic pillars of traceability (i.e., animal identification, premises identification and animal movement), as well as value-assurance information (e.g., age verification). All farm of origin information associated with each animal indicator’s unique identification number is maintained and protected within the CLTS database.

While Canadian Food Inspection Agency (CFIA) provides full regulatory enforcement for animal identification as defined in the Health of Animals Regulations, CCIA is the Responsible Administrator for the animal identification program and traceability initiatives for ruminant livestock, including caprine and cervid, if and when proposed animal identification and livestock traceability regulatory amendments are implemented.

W H A T T R A C E A B I L I T Y I S a n d W H Y i t I S I M P O R T A N T

CFIA defines traceability as the ability to follow an item or group of items – be it animal, plant, food product or ingredient – from one point in the supply chain to another, either backwards or forwards. Animal traceability means the ability to follow an animal or group of animals during all stages of life.

Traceability stakeholders include all participants in the livestock value chain, provincial/territorial/federal governments and all Canadians. Regulated parties include all persons who own or have care of livestock as defined under Part XV of the Health of Animals Regulations, including: livestock producers, importers, exporters, carriers, order buyers; operators of auctions, test stations, insemination centres, veterinary clinics, zoos, abattoirs, rendering plants, deadstock collection centres and post-mortem clinics; responsible adminstrators as well as approved animal identification indicator manufacturers and distributors.

Traceability systems can help reduce response time, thereby limiting economic, environmental and social impacts of emergency situations (e.g., disease outbreak, tornadoes, floods, fires, contaminated feed supplement); as well as limit economic, environmental and social impacts. Traceability also provides the means to increase market share for domestic and international markets by creating confidence in Canadian products. A strong and credible traceability program will help to ensure Canada remains a leading producer and marketer of beef and dairy cattle, bison and sheep, with a stable demand for products at all times.

L A N G U A G E S H I F T

New regulations and communication will see a shift in language from the use of ‘Approved Canadian Cattle Identication Agency Radio Frequency Identication Tags’ to the use of ‘Approved Canadian Cattle Identication Agency Animal Indicators’ or “Animal Indicators’ in order to address animal identication devices that have alternative designs with or without radio frequency identication technology.

H O W t h e S Y S T E M W O R K S

CCIA allocates unique identification numbers to approved animal indicator manufacturers for the manufacture of approved animal indicators for bovine, bison, ovine, caprine and cervid.

Approved manufacturers visually and electronically imbed approved CCIA animal indicators with a unique identification number.

The national approved animal indicator distribution network (authorized tag dealers, CCIA’s Web Store or Order Desk) sell tags to livestock operators and report all animal indicator issuance records directly to the CLTS database within 24 hours after sale.

Livestock operators apply an approved animal indicator to an animal before it leaves the farm of origin or the premises where it is located.

The unique animal indicator identification number is maintained to the point of export or carcass inspection for traceability purposes. The CLTS database maintains all historical records of approved animal indicators issued to livestock operators as well as any associated data (e.g., birth date).

A f u l l y - f u n c t i o n a l T R A C E A B I L I T Y S Y S T E M is based on t h r e e p i l l a r s :

1 . A N I M A L I D – Associating a unique animal identification number to an animal (e.g., applying an approved animal indicator to an animal)

2 . P R E M I S E S I D – Assigning a unique identification number to a physical land location (i.e., legal land description or geo-referenced coordinates) by a provincial/territorial premises registry

3 . A N I M A L M O V E M E N T – Recording the change in location (i.e., unique premises) of a uniquely-identified animal at a specified time/date

To track animal movement and facilitate a fully-functional, national traceability system, EVERY LIVESTOCK PREMISES must have a valid premises identification (PID) number

and submit animal movement data to the CLTS database.

1 + 2 = 3

P R O P O S E D A N I M A L I D E N T I F I C A T I O N a n d L I V E S T O C K T R A C E A B I L I T Y R E G U L A T O R Y A M E N D M E N T S O B J E C T I V E S , G O A L S a n d C U R R E N T G A P S

The objective of the livestock traceability system is to provide timely, accurate and relevant information to reduce the impacts of a disease outbreak, food safety issue or natural disasters originating from and/or affecting livestock. Effective traceability can protect public health and support industry market access, competitiveness and consumer confidence.

The four gaps that have been identified in the current livestock identification and traceability program:

1. Livestock species that share diseases are not all subject to traceability requirements

2. The time period provided to report an event to a responsible administrator is too long to support an efficient response to disease outbreaks, or natural disasters

3. Information about the geographical location of sites (premises) where animals are located is limited, and

4. Information about the domestic movements of livestock is unknown or not readily available

The proposed livestock traceability regulatory amendments will align with livestock identification and traceability requirements already adopted by provincial and territorial governments. The objective of the proposed regulatory amendments is to address these four gaps that were identified during industry- government consultations in 2013 and 2015.

A C T I O N u n d e r w a y

An industry-government Regulatory Implementation Committee has been formed with the objective to identify and prioritize actions collaboratively, to help prepare for a smooth implementation of proposed amendments to the Health of Animals Regulations. Current priorities of the committee include:

• Coordinate communications with provinces, territories, industry and those who will be subject to the regulations

• Develop a template for collecting information to accompany the movement of animals that can be used in the absence of a provincially/territorially-regulated document or manifest

• Verify that databases and information systems are ready for the collection of domestic movement information for all regulated species, and

• Inform and train inspectors and front-line staff on the new requirements.

Leading up to the publication of the draft regulation amendment in Canada Gazette (Part 1) will be communications with regulated parties to ensure awareness of the proposed changes and how those changes may affect their business operations.

For more information about the Livestock Identification and Traceability program, as well as the latest updates on the proposed amendments to the Health of Animals Regulations,

please visit www.inspection.gc.ca/traceability

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P R O P O S E D

A N I M A L I D E N T I F I C A T I O N r e q u i r e m e n t s

Identification requirements for goat, farmed deer, and elk will be required – thereby, broadening the scope of activities and animals that are subject to traceability requirements. NOTE: Identification for bison, cattle, sheep and pigs are already covered under the Health of Animals Regulations

P R E M I S E S I D E N T I F I C A T I O N r e q u i r e m e n t s

Persons who own or have the care or control of livestock will be required to provide the premises identification number for the location where approved indicators are applied to the animals. Should the animals be moved to a new location, outside the farm operation, the premises identification number for the destination location will also need to be provided. The following information is required to confirm or acquire a premises identification number from a provincial/territorial premises registry:

• Contact information

• Location of the premises

• Type of agricultural and agri-food operation on site

• Animal species kept on the premises

A N I M A L M O V E M E N T r e q u i r e m e n t s

With some exemptions, persons who own or have the care or control of livestock will be required to report the 1) domestic movement and 2) death of all regulated species to the responsible administrator’s database within seven days.

D O C U M E N T A T I O N r e q u i r e m e n t s

Certain information will be required to accompany a load of animals and/or animal carcasses being transported. The format/media on which the information should be provided will not be prescribed within the regulations, but it may include paper or electronic forms.

Federal requirement for information to accompany the animals and carcasses will not apply for species where similar provincial/territorial regulatory requirements already exist.

A voluntary movement document template will be made available to support transporters with compliance in provinces/territories that do not currently require any movement documentation.

T I M E L I N E

The proposed regulations are expected to be published in spring or fall 2018. Following the publication of the proposed regulations in Part I of the Canada Gazette at www.gazette.gc.ca/rp/publications-eng.html#a1, stakeholders will have 75 days to review and provide comment.

Canadian Food Inspection Agency will review and consider all comments received prior to finalizing the regulation amendments and publishing them in Part II of the Canada Gazette. Once published in Part II of the Canada Gazette, the regulations will be considered final and come into force, immediately.

G E N E R A L M A N A G E R ’ S R E P O R T

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On behalf of Canadian Cattle Identification Agency’s team, I am very proud to present a summary of our 2017 accomplished activities. It is always rewarding to look back on the previous year and realize how much was achieved.

The main focus of 2017 has been to prepare CCIA for the upcoming proposed regulatory amendments. We expect the amendments to impact all aspect of CCIA, most specifically the need for increased communication, influx of support inquiries, additional CLTS database developments and greater operation costs. We remain committed to assisting all regulated parties by constantly looking for innovative, cost-effective solutions to facilitate compliance.

Preparing CCIA for proposed regulatory amendments...

I n f o r m a t i o n T e c h n o l o g y

As required by CCIA’s Memorandum of Understanding with CFIA, we completed the Security Assessment and Privacy Assessment, as the last of four audits required to be conducted over the course of four years. Further, in light of upcoming regulatory amendments; CCIA undertook an independent audit/assessment of the CLTS database under the guidelines of the National Agriculture and Food Traceability System. The outcome of these audits provides us a tremendous guide in identifying gaps and priorities.

It was reiterated by the auditors that Cloud computing is a logical alternative to achieve business continuity and system recovery with the least amount of input and economy of scale. In 2017, CCIA’s mail server was migrated to the Cloud, representing savings on software and hardware, and our IT team is currently reviewing the application of Cloud computing in a data base environment that would meet CFIA’s approval.

The CLTS database was enhanced to include a new group movement module among several other alterations. Meanwhile, the CLTS MOBO application continues to receive added developments; each one taking it one step closer to our vision of being capable of executing the same events as the web version of the CLTS database.

C l i e n t S u p p o r t

At the dawn of the publication of the regulatory amendments, CCIA has already experienced an increased volume in support requests. Our office expanded by welcoming two additional, bilingual, front-line staff members and it is ready for future office space needs.

Anne Brunet-Burgess CCIA General Manager

P r e m i s e s I d e n t i f i c a t i o n

The Regularity Implementation Committee (RIC) composed of representatives for each regulated species, provincial and federal government and responsible administrators, launched a premises identification blitz in July. PID communication was broadly circulated across the country, encouraging all livestock operations to obtain a valid premises identification number.

Knowing that PID numbers have to be entered manually, one at a time, into each CLTS account, CCIA reached out to CLTS database account holders electronically and by traditional mail, encouraging them to share their PID numbers with us. We are grateful for Agriculture and Agri-Food Canada’s funding contribution in this out-reach endeavor.

N e w a t C C I A

CCIA entered the world of social media in 2017 via Facebook and Twitter. For the most current news in livestock traceability, make sure to like us on Facebook @CanadianCattleIdentificationAgency and follow us on Twitter @CCIA_Canada

A Responsible Administrator service agreement was signed between Canadian National Goat Federation and CCIA on March 1, 2017. We completed staff training prior to launching pre-approved goat indicator sales, which were made available via the webstore in fall 2017. We are delighted with the number of early adopters of animal identification ahead of regulations.

In late 2017, CCIA began negotiations with the Canadian Cervid Alliance to also provide administrator services to farmed elk and deer once they become federally-regulated.

A p p r o v e d A n i m a l I n d i c a t o r S a l e s

The webstore continues to grow with new products and greater acceptance as a means to acquiring approved animal indicators. Direct-to-producer sales shifted from 449 orders in 2016 to more than 750 orders by the end of the year – accounting for four per cent of approved animal indicator sales. We were pleased to include breed indicators for Simmental during 2017. The uptake from Simmental producers has far-exceeded expectations.

We recognize that direct sales are the principal, potential revenue growth for CCIA. Additional revenues will be necessary to continue with the same level of complimentary services to all regulated parties, especially when animal movement reporting becomes mandatory across Canada.

R e s e a r c h a n d D e v e l o p m e n t

Research and development activities are always a hot topic of interest around CCIA’s Board of Directors’ table and amongst tradeshow attendees. We have dedicated space in this annual report to summarize projects that were completed in 2017. Please take a moment to become acquainted with the interesting outcomes for each completed project.

At CCIA’s board meeting in April 2017, its Board of Directors reconfirmed their commitment to livestock traceability research and development by approving funds for the next cluster of projects.

In closing, I would like to thank CCIA’s Board of Directors and our staff, whom work hard every day to advance traceability, and always keep CCIA’s best interests in mind with each decision and task. I am extremely fortunate to be surrounded by such dedication.

T h a n k y o u f o r a t t e n d i n g o u r A n n u a l G e n e r a l M e e t i n g !

B O A R D C H A I R ’ S R E P O R T

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Mark Elford CCIA Board Chair

Canadian Cattle Identification Agency is extremely well-served by a dynamic group of directors at our board table. I enjoy working with my fellow directors and I appreciate each and every one of them for their experience and knowledge.

I have the privilege of participating in every committee, along with CCIA General Manager Anne Brunet-Burgess. To describe the specific work of our board best, my report will highlight the work completed by each committee in 2017.

The Finance and Audit Committee reviewed financial statements and positions each quarter of 2017. They guided staff with investments and contributions to the yearly budget, which CCIA’s Finance Manager presented to the board in December 2017. Following the approval of a three-year business plan in late 2016, this committee kept a close eye on expenses related to the plan throughout the year.

Populating committee positions is one of the many tasks the Board Development Committee accomplished in 2017. They also dealt with the Special General Meeting that took place in April 2017, when the board by-laws were updated approved by CCIA’s board member organizations.

In May, CCIA was invited to a roundtable discussion with the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food Canada, on issues that are important to the beef-cattle industry. This event was an opportunity for industry stakeholders to discuss their specific interests with the Minister. Accompanied by CCIA General Manager Anne Brunet-Burgess, I shared our main concerns regarding proposed regulatory amendments with the Minister. A few weeks later, we had the opportunity to discuss the details with the Minister’s policy advisor. The Technical Advisory Committee is the only CCIA committee with industry and government representatives as well as CCIA board members. In 2017, this committee made recommendations to CCIA’s board on newly-tested indicators and readers and dedicated a great amount of discussion time to traceability projects and initiatives. This committee made a recommendation

in April 2017 for CCIA to develop a research and development cluster, which CCIA’s Board of Directors fully supported and endorsed.

At CCIA’s board meeting in December, the Communications Committee members were treated with an early peek at the refresh of www.canadaid.ca, which will be launched in Spring 2018. The committee also reviewed its focus and preparation for the proposed animal identification and livestock traceability regulatory amendments. In 2017, web store communications featured testimonials from web store users, folloowing this group’s guidance.

Thanks to the Human Resource Committee, CCIA’s priorities are well defined for our General Manager. In 2017, the committee members reviewed job classifications and salary grids, and discussed group benefits. This committee also researched and recommended an adjustment to reflect the local cost of living.

Several CCIA board members was very involved in the CIP as well as two key activities in 2017, which included a traceability tour, as well as facilitating the review and assessment of the scientific quality of the CIP and CFIA’s proposed regulatory amendments by a team of independent, third-party experts.

A comprehensive traceability tour allowed CFIA senior representatives to follow a typical calf gather, sale at an auction market and delivery to a feedlot during fall run. Key contributors described the processes from cattle identification to current movement reporting and commerce practices. On behalf of CCIA, I would like to thank Canadian Cattlemen’s Association for coordinating this endeavour and all the participants whom contributed to its success.

After an extensive search for the most qualified experts, CCIA accepted a proposal from the Clinical Research Unit of the Cumming School of Medicine at University of Calgary to act as the central project management office and be the main point of contact for the Critical Appraisal of the Proposed Changes to the Health of Animals Regulations and the CIP. A steering committee guided this project – acting on the current recommendations identified in the final report revealing details, themes and gaps. CCIA received tremendous financial support from industry organizations and private donations to accomplish this project. Industry’s contributions were essential and greatly appreciated – thanks to all.

In closing, I must extend my sincere appreciation to CCIA board members concluding their time serving CCIA’s Board of Directors. Thank you – it has been a tremendous pleasure working alongside each of you.

I look forward to visiting with everyone at our Annual General Meeting.

Kindest regards,

R E S E A R C H a n d D E V E L O P M E N T C L U S T E R

In 2017, CCIA launched projects that explore how to reduce the administrative burden on industry members to report animal identification and movement events, including projects that:

• Automatically send data to the CLTS database using a private data network;

• Address how sighted events may be used to synthesize movement data to satisfy CFIA’s epidemiological standards;

• Test readers with the ability to read multiple animal indicators/tags, which may be more cost-effective than using wide alley readers;

• Use artificial intelligence to learn to field questions and receive traceability data at CCIA. If the chatbot is unable to handle a caller’s question or input, the system would reroute the call to CCIA’s Call Centre for a live response; and

• Use transponders on livestock conveyances to report data automatically to a database – rationalizing the animal indicator numbers in a CLTS-user’s inventory with the animals/tags that are loaded onto a conveyance.

• Explore how accelerated exposure to ultra-violet radiation affects material degradation of approved animal indicators for beef cattle.

A U T O M A T E D T R A C E S I G H T I N G D A T A C O L L E C T I O N i n R E M O T E P A S T U R E S

C O N C E P T

Utilizing passive reads from radio frequency identification reading equipment (connected to a private data network which facilitates the real time submission of sighted event data to a CCIA landing server with no human labour involved), to compliment traditional movement reporting data collection processes in Canadian livestock traceability settings

Q U I C K D E S C R I P T I O N

A proof-of-concept study to assess the ability to collect sighted data in remote comingling sites where there is little or no infrastructure

S I G H T E D E V E N T D E F I N I T I O N

The sighted event is used to report the capture of the number of an approved indicator (applied to an animal) that has been observed at a defined location on a defined day (e.g., livestock operation, veterinary clinic), to the Canadian Livestock Tracking System database

Remote reader web dashboard

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C O N C L U S I O N S

Satisfied. The largest success in this project was the development and deployment of two separate pieces of equipment to support the goal of reducing the burden on industry for reporting animal movement events. Passive collection of RFID sightings allowed for the automated collection and submission of 123,023 individual animal tag reads during the one-year study period. Once installed and configured, the remote pasture readers needed minimal maintenance of the battery and solar systems, while the removed logger readers needed no notable maintenance.

Satisfied. The application of a private data network solution lead to large reductions in the burden to livestock operators associated with passive RFID data system network connectivity. Reasonable quality cellular coverage is widely available in most of the remote production locations and the choice of a private data network backed solution keeps the burden of networking, off of the livestock operator.

Depending on setting, the opportunity to configure ghost readers to report animal sightings with no burden to the livestock operator is clearly demonstrated in this project. The application of the remote logger reader in feedlot processing settings had the capacity to automate the submission of regulatory required move-in records for these facilities, fully. Algorithmic approaches clearly demonstrated the opportunity for the synthesis of full movement records from the originating premises for the same animals.

The proposed animal identification section of the Health of Animals Act, requires full movement recording. No mention of sightings-based animal movement tracking is made; however, clear opportunities to infer full movement records from sightings, and to implement a system to verify and register full movements from algorithmically processed sightings data are clear and viable.

The use of network-enabled ghost readers eliminates the requirement of producers to take manual action to report data to the CLTS database – reducing administrative burden and human data-entry errors. Cattle-handling environments are not ideal environments for computer operation. Automating the preparation and submission of traceability data on ruggedized equipment could help eliminate dependence on fragile technology in production settings.

Increasing the volume and quality of traceability data in the CLTS database will help support the goal of a fully-functional livestock traceability system in Canada.

O B J E C T I V E S

Simplification of autonomous reporting of traceability data to the CLTS database via the use of better and smarter technology

Determine whether a private data network can be used to collect and report more data from more locations across Canada more efficiently than existing infrastructure

Determine how much administrative burden will be reduced or eliminated through the collection of animal movement data using ghost-reader systems

Test methods to reduce administrative burden on industry for the reporting of animal movements using sighting events to synthesize movement events in the CLTS database, which could meet CFIA epidemiologists’ requirements

Increase data integrity by eliminating manual data entry of animal movement data

Support implementation of and compliance with proposed animal movement reporting regulations and a fully-functional livestock traceability system in Canada

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A U T O M A T E D T R A C E S I G H T I N G D A T A C O L L E C T I O N i n R E M O T E P A S T U R E S c o n t i n u e d

G H O S T - R E A D E R D E P L O Y M E N T

Remote pasture readers were deployed at remote grazing locations, and logger readers were deployed at large feedlots throughout Alberta.

L A N D I N G S E R V E R D E V E L O P M E N T

This project developed a data repository for storage of sightings records; a sightings data dashboard (a web-based monitoring dashboard for the remote readers to support project operations); and a sightings data end-point to support the submission and verification of sightings events to the Sightings Data Repository for each type of remote reader.

D E M O N S T R A T E D C A P A B I L I T I E S A T P R O J E C T E N D

• Use data loggers connected to existing RFID scanning systems at farms and co-mingling sites to report data directly to the CLTS database

• Reduce industry’s reporting burden through the effective use of sighted event data

• Determine the level of sighted event data required to synthesize movement data reporting and use, through easy-to-use technology

o Movement data can be synthesized from the sightings data generated by remote pasture reader for move-in record synthesis, inventory registry and move-out record synthesis.

• Use a private data network to broaden the reach for the collection of traceability data in under-served rural areas where Internet service is poor or inaccessible

A U T O M A T E D D A T A C A P T U R E a n d S Y N T H E S I S f o r T R A C E A B I L I T Y

C O N C E P T

Utilizing a ghost-reader system that is connected to a private data network, which facilitates the real-time submission of sightings data to a CCIA landing server with no human labour required. This project has been launched in conjunction with the Automated Trace Sighting Data Collection in Remote Pastures project which utilizes passive reads from radio frequency identification reading equipment (connected to the private data network described in this project), to compliment traditional movement reporting data collection processes in Canadian livestock traceability settings.

Q U I C K D E S C R I P T I O N

A proof-of-concept study to assess the impact to traceability imparted through the use of varying rates of animal sighting events rather than full movement event recording

O B J E C T I V E S

Address the use of scanned, sighted event data for use on an ongoing basis to meet proposed animal movement data reporting requirements

Answer the question of whether/not a private data network can be used to collect and report more data from more locations across Canada more efficiently than existing technologies

Determine how much administrative burden will be reduced or eliminated through the collection of animal movement data using ghost reader systems

C O N C L U S I O N S

Ghost reader systems can reduce the burden of animal traceability data collection in the community pasture and feedlot settings. While the extension of these findings to other settings should only be done with structured testing and assessment, this project provides no reason to suggest that ghost reader equipment could not reduce the burden in other settings.

The accuracy of traceability data reported by ghost-reader systems will be as high as RFID chip reader systems. Future work could explore opportunities to increase the security of transmitted data, or to improve on system performance in poor network quality environments.

Since current or proposed regulation does not outline hard statistical metrics to assess traceability functionality, the project managers hope to develop a suitable framework for this assessment in 2018. The development of such a framework would allow the project team to quantify the true benefit from a functionality and cost-benefit analysis to traceability resulting from any change in national disease surveillance strategies.

R E C O M M E N D A T I O N S a n d N E X T S T E P S

• Continue to refine and extend the sightings data submission framework to support a broad network of ghost-reader equipment

• Support the development of policy and guidance on the use of sightings data in the synthesis of individual animal movement records

• Support the development of a set of metrics for the quantitative assessment of national traceability system efficacy

• Extend the testing of ghost-reader equipment to settings outside of cow-calf and feedlot settings, on a national scale

L I V E S T O C K T R A C E A B I L I T Y U S I N G C O N V E Y A N C E S

C O N C E P T

Knowing which animals co-mingled on a conveyance, and when the animals left one premises and arrived at another, are gaps not addressed in the current system (where manifests are not in use). Having move-in/ move-out data only, makes it difficult to understand the co-mingling of livestock on conveyances.

This project reviewed the applicability of adopting commercial vehicle tracking applications to increase the quality and timeliness of animal movement event data reported to the CLTS database.

L I V E S T O C K T R A C E A B I L I T Y U S I N G C O N V E Y A N C E S c o n t i n u e d

R E C O M M E N D A T I O N S a n d N E X T S T E P S

• Leverage learnings to develop a second phase using the products from this project to develop and test tools that would allow the development of national conveyance tracking data

• Explore and test key concepts developed to augment and verify traceability movement data in conveyance tracking as a pillar in the Canadian traceability system

• Determine, via a second phase of the project, if it is possible to lower the costs for hardware and data collection to make the system more viable as an effective traceability tool

• Determine, via a second phase of the project, the cost-benefit of using autonomous methods such as conveyance tracking over traditional reporting methods (i.e., via file upload, submitting directly online or using the CLTS MOBO app), for compliance with proposed animal movement reporting regulatory amendments

O B J E C T I V E S

Determine if existing technology used for tracking commercial vehicles, could be used to supplement traceability data for livestock transported on conveyances, in the CLTS database

C O N C L U S I O N S

Tracking livestock movement using a GPS conveyance tracking system will be beneficial because:

It is automated and requires no user input. Data is pulled by the system rather than pushed by livestock operators

Continuous, large amounts of location-based data is available for each conveyance being tracked while it is moving

Historical data points from each tracking event can be easily stored and plotted into Google Maps, which allows route-based information for every historical movement via conveyance to be viewed and analyzed as required

Group movement can be tracked easily and autonomously

Individual animal movements can be tracked when GPS data is used in conjunction with CLTS data (i.e., using the concept of eventual consistency)

Once set up, conveyance tracking can be completely autonomous and invisible to the livestock operator or transporter

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T A G R E T E N T I O N P R O J E C T P H A S E I I :

Q U A N T I T A T I V E M A T E R I A L T E S T I N G o f A P P R O V E D I N D I C A T O R S f o r N O N - B R E E D S P E C I F I C B E E F C A T T L E D I S P L A Y I N G M A T E R I A L D E G R A D A T I O N A F F E C T I N G R E T E N T I O N

C O N C E P T

In direct response to livestock operator complaints, CCIA designed this project to explore how accelerated weathering (i.e., exposure to ultra-violet - UV radiation) affects material degradation by means of retaining a Standards Council of Canada (SCC)-approved, materials-testing laboratory to evaluate the mechanical performance of plastic materials for the full array of approved animal indicators for beef cattle (i.e., Allflex, Destron Fearing, Reyflex, Y-Tex, Z-Tag), following various period of UV radiation produced by Xenon Arc exposure.

N E X T S T E P

Official project details will be revealed in the final report in 2018 – stay tuned!

P R O C E D U R E

At 250-hour intervals, the laboratory randomly selected seven specimens from each sample group of approved indicators, and visually inspected each of the seven specimens for evidence of damage, degradation and/or colour change.

After which, the laboratory randomly selected three specimens from each sample group of approved indicators, to be subjected to a series of mechanical tests to determine the tensile strength (i.e., amount of force required to pull apart already coupled devices) and failure mode (i.e., break at locking mechanism) following periods of Xenon Arc exposure.

C O N C L U S I O N S

Unofficial findings indicate all specimens displayed varying degrees of progressive degradation and/or discolouration at 0, 250, 500, 750 and 1000 hours \of UV exposure.

I N F O R M A T I O N T E C H N O L O G Y

T h e C L T S M O B O a p p

Canadian Cattle Identification Agency relaunched the CLTS MOBO application which is a free and portable version of the CLTS database that allows users to submit birthdates, animal movement and retired events quickly and easily to the CLTS database using a mobile device.

CLTS MOBO features Optical Character Recognition technology which converts images of number lists into editable, searchable data for upload to a CLTS-user’s database account. CLTS MOBO enables users to take a picture of a list of the unique, 15-digit numbers of approved animal indicators and upload the image using the CLTS MOBO app, then the app converts the image into editable, searchable, usable data that is uploaded into the user’s CLTS database account.

With CLTS MOBO, users can

• View account information and premises list

• Submit birthdates for age verification

• Search approved animal indicators, transactions, animal birthdates, certificate history, and

• Submit animal movement and retired events

Moving forward, CCIA’s IT group will continue to enhance the CLTS MOBO application by enabling more reportable events and an approved animal indicator ordering feature.

Learn more at support.canadaid.ca

O p t i m i z i n g D a t a - E n t r y S u b m i s s i o n

In the Event Submission Module, CCIA’s IT team has

• Created a date selection pop-up for all date fields to prevent data entry errors

• Programmed the Remove Tags from List button to remain grey until the CLTS-user adds indicators to the list and developed a pop-up to explain the use for the button, to prevent accidental deletion of data entry

In the General Account Module, CCIA’s IT team has

Added Account Division based on Species, which appears if a CLTS-user with a producer operation-type is selected. This account division is important because it allows CLTS users to add attributes that apply to a specific species in their account (i.e., beef cattle and goats may have different attributes the producer wishes to associate with the animal’s indicator identification number in his/her CLTS account inventory).

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In the Inventory Module, CCIA’s IT team has

Moved the Tag/Animal Inventory selection to the top menu bar with new definitions – displaying the selection based on the account operation type, for CLTS-user convenience. New definitions include:

• Unused Tag Inventory which refers to approved indicators that have not been applied to animals

• Animal On-farm Inventory which refers to approved indicators that have had an animal event applied (e.g., birth date, cross reference, replaced, move in, group move in, move out, group move out, sighted, imported, exported, temporary export, retired and disposed)

New feature: CLTS-users are now able to select indicators from either inventory (i.e., from Unused Tag Inventory or Animal On-farm Inventory), to submit reportable events to the CLTS database.

I n t r o d u c i n g a n e w C L T S e v e n t : T h e D i s p o s e d E v e n t

The CLTS database Disposed event is used to report the identification of an approved indicator applied to an animal, or an animal based on carcass details, that has died and has been disposed of by a producer or dead stock operator. Now, CLTS-users have the option to report deceased animals with or without an approved indicator number. At the time of this report, only producer, dead stock operator, pathology lab, veterinary hospital and laboratory operation types have access to submit this event.

P r o p o s e d L i v e s t o c k I d e n t i f i c a t i o n a n d T r a c e a b i l i t y R e g u l a t o r y A m e n d m e n t P r e p a r a t i o n

In preparation for the proposed livestock identification and traceability regulatory amendments which may require auction marts, buying stations and assembly yards to report receipt of animals as a group, CCIA’s IT team completed the programming for Move-in event data submission for a group of animals as well as Move-out event data submission for a group of animals.

O t h e r

CCIA’s IT team has designed and launched

• A session time-out alert to notify CLTS-users when a secured login has lapsed

• Move-out event query for web services

• CLTS MOBO event submission web services

• Event submission module web services

• Animal Search feature web services

• A CLTS database automated email notification style enhancement

• An opt-in field for authorized dealers of animal indicators

• An address book feature

• A Premises help link on My Account – Premises List page

• Back-end data validation rules for animal movement reporting

P R E P A R A T I O N f o r P R O P O S E D A N I M A L I D E N T I F I C A T I O N a n d L I V E S T O C K T R A C E A B I L I T Y R E G U L A T O R Y A M E N D M E N T S

20

CCIA General Manager

Anne Brunet-Burgess continued to be an active,

instrumental member of the Regulatory Implementation Committee, which is the new industry-government

advisory committee that is working together to ensure regulatory

stakeholders are prepared to learn about and comply with CFIA’s proposed livestock traceability

regulations ahead of implementation.

On behalf of the Cattle Implementation Plan Committee,

CCIA recruited a project team of experts to perform an independent, third-party review of CFIA’s epidemiological report,

CFIA’s proposed regulatory changes and the CIP’s recommendations.

On behalf of the Cattle Implementation Plan Committee, CCIA

recruited a project team of experts to perform an independent, third-party review of CFIA’s epidemiological report,

CFIA’s proposed regulatory changes and the CIP’s recommendations.

Having distributed more than

198,000 premises ID and contact reference cards to livestock traceability

stakeholders across Canada by early 2017, and even producing a do-it-yourself video tutorial to

upload a valid PID into a CLTS database account, CCIA continued to encourage livestock operators to identify their premises by applying for/confirming a valid PID

number with their local provincial/territorial premises registry in preparation for CFIA’s proposed animal ID and livestock traceability regulatory amendments,

which may require all livestock operations to have a valid PID and use it to report

animal movement data to the CLTS database.

Having distributed more than

198,000 premises ID and contact reference cards to livestock traceability

stakeholders across Canada by early 2017, and even producing a do-it-yourself video tutorial to

upload a valid PID into a CLTS database account, CCIA continued to encourage livestock operators to identify their premises by applying for/confirming a valid PID

number with their local provincial/territorial premises registry in preparation for CFIA’s proposed animal ID

and livestock traceability regulatory amendments, which may require all livestock operations to

have a valid PID and use it to report animal movement data to the

CLTS database.

CCIA continued to

prepare for CFIA to announce the semi-final version

of the proposed animal identification and livestock traceability regulations

in Part I of the Canada Gazette in spring or fall 2018, by recruiting and training

additional technical and IT team members. CFIA will provide industry with a comment pe-

riod before drafting the final version of the regulations in Part II of the Canada Gazette, which CCIA anticipates being

announced in Part II of the Canada Gazette in early 2019 when the

proposed regulations will be implemented.

CCIA continued to

prepare for CFIA to announce the semi-final version

of the proposed animal identification and livestock traceability regulations

in Part I of the Canada Gazette in spring or fall 2018, by recruiting and training

additional technical and IT team members. CFIA will provide industry with a comment period before drafting the final version of

the regulations in Part II of the Canada Gazette, which CCIA anticipates being

announced in Part II of the Canada Gazette in early 2019 when the

proposed regulations will be implemented.

CCIA General Manager

Anne Brunet-Burgess continued to be an active,

instrumental member of the Regulatory Implementation Committee, which is the new industry-government

advisory committee that is working together to ensure regulatory

stakeholders are prepared to learn about and comply with CFIA’s proposed livestock traceability

regulations ahead of implementation.

C L I E N T S E R V I C E S a n d T E C H N I C A L S U P P O R T U P D A T E

F o c u s i n 2 0 1 7

• Client support and facilitation of training

• Train the trainer: CLTS MOBO app technical support

• Verify and update CLTS database user account contact information

• Support for provincial/territorial premises identification registry issuance of valid premises identification numbers for all livestock operators by

• Directing livestock operations to their local premises registry to confirm or acquire a PID for their livestock operation ahead of proposed animal movement regulations which will require all livestock operations to have a valid PID number

o Entering valid PIDs into CLTS users’ accounts on their behalf, on request

o Education and technology transfer to assist dairy farmers to meet ProAction initiatives, including: CLTS username and account ID confirmation and providing one-on-one training and support to log into the CLTS database and submit animal events

• Recruited two additional bilingual Client Support Representatives to provide animal identification, livestock traceability and CLTS technical support to CLTS users

• Welcomed goat producers to CCIA’s full array of complimentary support services and introduced them to the CLTS database by assisting them to set up a CLTS account and purchase pre-regulatory goat indicators using CCIA’s web store

• Providing CLTS database quick tips and best practices for CLTS users

TOTAL NUMBER OF SERVICE TICKETS COMPLETED IN 2017 including telephone calls, emails, facsimiles and standard mail response:

1 9 , 3 6 8

S P E C I A L A C K N O W L E D G M E N T S

M O B I L E F I E L D R E P R E S E N T A T I V E P R O G R A M

Since 2006, CCIA has been providing complimentary livestock traceability support services to producers and other agri-businesses in Alberta through a team of highly-specialized Mobile Field Representatives (MFR) with first-hand experience in livestock operations. Their primary role has been to educate, train and assist regulated parties with Alberta’s animal identification and livestock traceability regulatory compliance, as well as updating and submitting data to their CLTS database accounts.

As a not-for-profit organization, CCIA has been managing the MFR program through the CCIA Traceability Extension Enhancement Project, which has been fully-funded by Alberta Agriculture and Forestry through the Growing Forward 2 (GF2) initiative. However, on March 31/18, the GF2 regulatory framework and all GF2-funding programs will end – including the MFR extension program in Alberta. On April 1/18, the Canadian Agricultural Partnership (CAP) will replace GF2 with new objectives, programs and funding opportunities for livestock traceability.

The awareness and understanding of traceability has been well-shared across Alberta by industry and government. Through the MFR program, CCIA has played an important role in supporting livestock operators to adopt Alberta traceability requirements and best practices in preparation for proposed animal identification and livestock traceability regulatory amendments expected in early 2019.

CCIA extends the warmest wishes and heartfelt appreciation to the 11-person team that made the MFR program a success for 12 years! Their contribution to animal identification and livestock traceability education and technology transfer has been invaluable to Alberta’s livestock industry.

L A R R Y G A R R E T T

CCIA’s Board of Directors has been privileged to work with British Columbia Cattlemen’s Association representative Larry Garrett since 2013. From the beginning of his appointment in 2013, Larry was an active and passionate member of the Technical Advisory Committee. In 2014, Larry also joined CCIA’s Board Development Committee – leading it as committee chair in 2015 and 2016. Larry provided solid leadership throughout CCIA’s bylaw review process, which aligned the bylaws with the new Canada Not-for-Profit Act. CCIA’s Technical Advisory and Board Development Committees will miss Larry’s breadth of experience and unique insight in future discussions.

T I M F U G A R D

CCIA’s Board of Directors has been privileged to work with Beef Farmers of Ontario representative Tim Fugard since 2015. CCIA quickly took advantage of Tim’s financial acumen by appointing him to CCIA’s Finance and Audit Committee, where he was elected as Finance and Audit Chair for 2016 and 2017. Tim has been instrumental in drafting CCIA’s three-year business plan, which CCIA adopted in late 2016. Tim has made a huge contribution in a very short time on CCIA’s Board of Directors and he will be missed.

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D R . P A T B U R R A G E

As Canadian Veterinary Medical Association’s representative on CCIA’s board of directors since 2007, Dr. Pat Burrage has been an integral leader in the development of a fully-functional livestock traceability system while pointing out the gaps and uncontrollable risk factors that affect regulated parties from complying with current and proposed animal identification and livestock traceability regulations.

A s C C I A ’ s B o a r d C h a i r from 2013 to 2015, Dr. Burrage

Supported the successful launch of the Tag Supply Chain Distribution Project, which • Effected change to the distribution system for approved animal indicators in that CCIA acquired sole control of distribution to retail dealers of animal indicators for non-breed specific beef cattle, which improved data accuracy and capture, increased privacy of CLTS user data, lowered the average price of approved animal indicators for non-breed specific beef cattle and offered the full array of approved animal indicators to retail dealers and livestock operators across Canada• Offered a producer-direct web store to strengthen CCIA’s direct connection with livestock operators across Canada for the first time ever

Supported CCIA’s adoption of the National Look-Up Module in the CLTS database that verifies each provincially-generated PID before it is accepted into the corresponding CLTS database account

Led industry participants through interaction with CFIA around crucial aspects of the CIP, which is industry’s road map for implementing a fully-functional animal identification and livestock traceability system. Dr. Burrage has been an active participant in the:• Industry Government Advisory Committee to help prepare CCIA and industry for proposed animal ID and livestock traceability regulatory amendments• Cattle Movement Working Group to develop a viable, economical, national movement reporting mechanism

Led the development of CCIA’s strategic plan, including a refresh to its mission, vision and values

Met with the former Minister of Agriculture and Agri-Food Gerry Ritz to discuss the CIP and CFIA’s consultation process for regulatory amendments to ensure industry and governments continue to unite and steer the program together, developing an action plan to guide and advance a sustainable and fully-functional livestock traceability system in Canada

A s C h a i r o f C C I A ’ s T e c h n i c a l A d v i s o r y C o m m i t t e e , Dr. Burrage

Focused on delivering improvements in operability and costs for a sustainable livestock traceability system for Canadian livestock operators, including:• CCIA’s National Tag Retention Project, Phase I and II• Development of indicators for terminal animals• Automated traceability data collection• High-retention security ear tag design improvements• Optimization of electronic identification for equine• The Tag Data and Tag Data Integrity Project to enhance the quality of approved indicators for beef cattle• The development of CCIA’s Research and Development Cluster

Pairing his professional experience with his academic accomplishments, Dr. Burrage has served CCIA’s Board of Directors with dedication and distinction since 2007. In that time, Dr. Burrage has improved CCIA’s communications with board member organizations and government – ensuring CCIA’s traceability objectives are understood and in alignment with all stakeholders. T h a n k y o u , D r . P a t B u r r a g e !

V A L I D P R E M I S E S I D s A D D E D t o C L T S A C C O U N T S , e t c .

24

Tag Events include:

Allocated, Manufactured,

Distributed and Issued

26

566,538,865

31,378,788

36,375,31625,543,029 31,778,206

32,166,731

P R O V I N C I A L , T E R R I T O R I A L a n d F E D E R A L P R O J E C T F U N D I N G

• Canadian Cattle Identification Agency Traceability Extension Enhancement Project 2016-2018 April 2016 to March 2018 in the amount of $1,630,500 provided by Alberta Agriculture and Forestry

• Automated Trace Sighting Data Collection in Remote Pastures September 2016 to December 2017 in the amount of $75,000 provided by Alberta Agriculture and Forestry

• Automated Data Capture and Synthesis for Traceability April 2016 to December 2017 in the amount of $140,000 provided by Alberta Agriculture and Forestry

28

Animal Events include:

Birthdate, Cross Reference,

Exported, Imported,

Move In, Move Out, Replaced,

Retired and Sighted

B O A R D R E M U N E R A T I O N , A T T E N D A N C E a n d R E L A T E D E X P E N S E S i n 2 0 1 7

N O T E S :

• The CCIA board of directors believes in full financial disclosure of all board per diems, honorariums and travel expenses. To this end, these tables outline the 2017 CCIA Board of Directors’ expenditures.

• Board Meetings include two in-person meetings (approximately 1.5 days each)

• Committees denotes the number of committees on which the director sits.

• Committee Attendance includes teleconference calls and in-person meetings for CCIA committees (i.e., Board Development, Communications, Executive, Finance and Audit, Human Resources), Canadian Agri-Traceability Services, CIP and CIP-related committees, Technical Advisory Committee and attendance at industry and government meetings

Committees Attendance

Mark Elford, Chair SSGA $7,500 $6,775 $14,275 2 8 20 $8,085Pat Hayes, Vice Chair CCA $3,900 $1,000 $4,900 2 3 4 $145Tim Fugard, Finance Chair MBC $3,900 $1,575 $5,475 2 5 8 $2,403Doug Sawyer, Exec. Member CCA $1,050 $1,050 2 3 4 $185Rick Wright, Exec. Member LMAC $2,200 $2,200 2 6 7 $4,045Pat Burrage, Past Chair CVMA $850 $850 2 5 9 $1,112Sid Atkinson DFC $0 $0 2 3 1 $0Howard Bekkering ABP $0 $0 1 2 0 $0Gib Drury PBQ $625 $625 2 3 5 $1,856Larry Garrett BCCA $900 $900 2 3 4 $1,353Larry Gerelus MBP $0 $0 2 4 2 $962Dan Gillis CMC $0 $0 2 1 0 $0Ivan Johnson MBC $1,200 $1,200 2 3 1 $1,841Dave Kasko (to April 30) CMC $0 $0 1 1 0 $0Terry Kremeniuk CBA $1,200 $1,200 2 4 6 $1,060James MacLean CLDA $0 $0 0 1 0 $0Lyle Miller ACFA $0 $0 1 3 4 $0Reg Schellenberg CCA $400 $400 2 3 3 $874Alan Schlachter CMC $975 $0 $0 1 1 0 $0

TOTAL $15,300 $17,775 $33,075 $23,919

$33,075

$23,919

$6,920

$7,268

$64

$71,246

CCIA Committee Meeting Attendance Board Travel and Expenses

(less GST)

Board Meeting Attendance (Includes Conf.

Calls)

Boar

d Ex

pens

e Su

mm

ary Board Remunerations

Board Travel and Expenses

Hotel Rooms for Board Meetings

Additional Board Costs (meals, transportation, printed Annual Report, photographer)

Producer Meetings and Committee Expenses (conference calls and in-person attendance)

TOTAL

Board MemberMember

OrganizationHonorariums (A) Per Diems (B) Total Remunerations (A+B)

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G O V E R N A N C E P R A C T I C E S

T h e C a n a d i a n C a t t l e I d e n t i f i c a t i o n A g e n c y B o a r d o f D i r e c t o r s consists of 18 individuals appointed by member organizations as outlined in CCIA’s bylaws. The board oversees the planning process and provides input, guidance and validation, and evaluates plans and financial performance. The board supports strategic initiatives through direct leadership of these initiatives, which are reviewed throughout the year.

The board members elect an executive committee at the first meeting following the annual general meeting each year. The executive committee includes the chair, vice chair, finance and audit committee chair, and two directors at large. Along with CCIA’s general manager, the executive committee assists the board in carrying out the policies established by the board of directors. The roles and responsibilities of the chair, board members, general manager and committees are set out in written policies and charters.

The corporation has a risk management process designed to identify potential events that may affect business operations. The board ensures appropriate authorities and controls are in place, and risks are properly managed to ensure CCIA’s objectives are achieved. The CCIA management team works closely with the board to ensure the board is fully aware of CCIA affairs. The board meets a minimum of three times per year with CCIA management at these meetings; although, time is reserved for the board to meet without management present.

The board assesses its performance regularly with the goal to improve and maintain sound governance practices. Gaps in skills are addressed through new board member appointments, training and hiring outside experts as required.

C O M P E N S A T I O N

• Directors are paid a per diem and travel costs to attend meetings and participate on committees. • The chair receives an honorarium of $1,875 per quarter. • The vice chair, and finance and audit committee chair receive an honorarium of $975 per quarter. • Board members receive a per diem of $200 per day, with executive committee and board committee chairs receiving a per diem of $225 per day.

C O N F L I C T o f I N T E R E S T G U I D E L I N E S

It is the duty of each member of CCIA’s Board of Directors to serve the agency’s mission and not to advance his/her personal interests of those of other private parties.

CCIA’s Conflict of Interest Policy is intended to permit CCIA and its board members to identify, evaluate and address any real, potential or apparent conflicts of interest that might, in fact or appearance, call into question their duty of undivided loyalty to CCIA.

Each board member is required to acknowledge he/she is in compliance with Conflict of Interest Policy on an annual basis.

Board of Directors 2017

Mark ElfordChairSaskatchewan Stock Growers Association & Cow/Calf Producer, Wood Mountain, S.K.

Pat HayesVice ChairCanadian Cattlemen’s Association & Cow/Calf Producer, Val Marie, S.K.

Tim FugardFinance & Audit ChairBeef Farmers of Ontario & Cow/Calf Producer, Petrolia, O.N.

Doug SawyerExecutive MemberCanadian Cattlemen’s Association & Cow/Calf Producer, Pine Lake, A.B.

Rick WrightExecutive MemberLIvestock Markets Association of Canada & Cattle Buyer, Virden, M.B.

Dr. Pat Burrage, BSc, DVMPast ChairCanadian Veterinary Medical Association & Veterinarian, Bluffton, A.B.

Sid AtkinsonDairy Farmers of Canada & Dairy/Beef Producer, Roseneath, O.N.

Howard BekkeringAlberta Beef Producers & Feedlot Operator, Vauxhall, A.B.

Gib DruryLes Producteurs de bovins du Québec & Cow/Calf Producer, Alcove, Q.C.

Larry GarrettBritish Columbia Cattlemen’s Association & Cow/Calf Producer, Vanderhoof, B.C.

Larry GerelusManitoba Beef Producers & Cow/Calf Producer, Shoal Lake, M.B.

Dan GillisCanadian Meat Council & Livestock Dealer, Strathmore, A.B.

Ivan JohnsonMaritime Beef Council & Cow/Calf Producer, Miscouche, P.E.

Alan SchlachterCanadian Meat Council Ottawa, O.N.

Terry KremeniukCanadian Bison Association Executive Director, Regina, S.K.

James MacLeanCanadian Livestock Dealer’s Association & Feedlot Operator, Medicine Hat, A.B.

Lyle MillerAlberta Cattle Feeders’ Association& Feedlot Operator, Acme, A.B.

Reg SchellenbergCanadian Cattlemen’s Association & Cow/Calf Producer, Beechy, S.K.

B O A R D o f D I R E C T O R S 2 0 1 7

Canadian Cattle Identification Agency

Summary Financial Statements December 31, 2017

32

PricewaterhouseCoopers LLP 111 5 Avenue SW, Suite 3100, Calgary, Alberta, Canada T2P 5L3 T: +1 403 509 7500, F: +1 403 781 1825, www.pwc.com/ca

PwC refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

March 19, 2018

To the Members of Canadian Cattle Identification Agency

The accompanying summary financial statements, which comprise the summary statement of financial position as at December 31, 2017, the summary statement of operations and fund balances for the year then ended, are derived from the audited financial statements of Canadian Cattle Identification Agency for the year ended December 31, 2017. We expressed an unmodified audit opinion on those financial statements in our report dated March 19, 2018.

The summary financial statements do not contain all of the disclosures required by Canadian accounting standards for not-for-profit organi . Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Canadian Cattle Identification Agency.

responsibility for the summary financial statements Management is responsible for the preparation of a summary of the audited financial statements in accordance with criteria established by management that ensures the summarized financial statements agree with the related information in the audited financial statements.

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, "Engagements to Report on Summary Financial Statements."

Opinion In our opinion, the summary financial statements derived from the audited financial statements of Canadian Cattle Identification Agency for the year ended December 31, 2017 are a fair summary of those financial statements, in accordance with Canadian accounting standards for not-for-profit organizations.

Chartered Professional Accountants Calgary, Alberta, Canada

Canadian Cattle Identification Agency Statement of Financial Position As at December 31, 2017

2017$

2016$

Assets

Current assetsCash 5,860,053 3,068,816Short-term investments 1,012,690 2,014,937Accounts receivable 73,798 137,152Prepaid expenses 125,950 121,835

7,072,491 5,342,740

Long-term investments 1,000,252 2,004,622

Capital assets 96,345 53,932

8,169,088 7,401,294

Liabilities and Net Assets

Current liabilitiesAccounts payable and accrued liabilities 296,506 215,952Deferred contributions 831,585 1,120,699

1,128,091 1,336,651

Fund balancesOther internally restricted 6,724,667 6,724,667Externally restricted 100,000 100,000Unrestricted 216,330 (760,024)

7,040,997 6,064,643

8,169,088 7,401,294

34

Canadian Cattle Identification Agency Statement of Operations and Fund Balances For the year ended December 31, 2017

2017 2016

CCIAOperation

Fund $

Project Fund

$Total

$Total

$

RevenueTag sales – Cattle 2,686,942 - 2,686,942 2,220,105Tag sales – Other species 76,023 - 76,023 66,747Interest 61,511 - 61,511 55,415Miscellaneous 18,744 - 18,744 16,859Alberta Minister of Agriculture and

Forestry - 875,056 875,056 1,038,370 Ministry of Agriculture and Agri-Food - - - 21,954Tag distribution 847,431 - 847,431 819,154Tag Registry Fees 88,079 - 88,079 6,045

3,778,730 875,056 4,653,786 4,244,649

ExpensesSalaries and benefits 1,535,493 - 1,535,493 1,442,126Information tracking systems 347,950 - 347,950 399,080Rent 229,726 - 229,726 240,549Amortization 15,994 - 15,994 12,801Honorarium and board 71,246 - 71,246 137,288Contract workers 181,003 428,018 609,021 673,675Professional fees 114,237 - 114,237 65,144Miscellaneous 26,068 - 26,068 22,361Stakeholder communications 227,118 18,164 245,282 291,394Telephone and fax 28,817 14,354 43,171 44,084Office 26,477 4,381 30,858 45,529Insurance 19,255 - 19,255 19,631Travel and promotion 149,727 202,336 352,063 337,557Administration - 207,803 207,803 293,431Administration reimbursement (170,735) - (170,735) (164,780)

2,802,376 875,056 3,677,432 3,859,870

Excess of revenue over expenses for the year 976,354 - 976,354 384,779

Fund balances – Beginning of year 6,064,643 - 6,064,643 5,679,864

Fund balances – End of year 7,040,997 - 7,040,997 6,064,643

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