Published by Manitoba Beef Producers
Jeannette Greaves
February 2014
What is a Good Bull Worth? Page 3
RON FRIESEN
KEY POINTS
It is a rare occasion when farmers ask their own association to raise check-off levies on the commodities they sell. But that is what Manitoba cattle producers are doing. Five resolutions passed at Manitoba Beef Producers (MBP) district meetings last fall call for an increase in MBP’s membership check-off. What is significant is that these requests are coming from the grassroots, not the board of directors, says Cam Dahl, MBP general manager. “Members at district meetings have looked at this and said our organization needs additional financial resources to do what we need it to do,” Dahl said on the eve of the MBP annual meeting in Brandon, where the resolutions were to be debated. “I view this as a very strong vote of confidence coming from the membership. It is gratifying.” The first motion to come forward was from Don Guilford, a Hereford and Black Angus purebred producer from Clearwater, at the District 2 meeting on October 29. Guilford says it is important to keep MBP strong and viable through member
• MBP members are calling for an increase in check-off levies. • Vote at annual meeting will take place. • Monies collected help MBP represent beef producers across Manitoba. • GM Cam Dahl says the requested increase is a strong vote of confidence from the membership. support because cattle producers receive no direct government subsidies. “I just feel the work of Manitoba Beef Producers is vital to our industry. They are our only voice,” Guilford said. Dahl said a majority vote by members at the annual meeting is all that is needed to increase the check-off. MBP does not require approval from the government or the provincial farm marketing council to make the change. A sharp drop in cattle sales and a resulting shortfall in MBP’s operating revenue are the reasons for suggesting a check-off increase at this time.
Currently, Manitoba producers pay $3 a head in checkoffs. A $2-a-head checkoff collected on cattle sold within Manitoba funds the operations of Manitoba Beef Producers. The levy is collected automatically at point of sale but can be refunded to producers on request. A second check-off of $1 a head goes toward national programs, including Canada Beef and the Beef Cattle Research Council. It is non-refundable. A previous check-off of $2 a head, payable to the Manitoba Cattle Enhancement Council (MCEC), ended last year when the provincial government terminated the MCEC. Dahl and Guilford say ending the MCEC check-off makes it easier to sell an increase in the check-off for MBP. Even if the levy gets raised by $1 a head, the total amount will still be a dollar less than when MCEC was in operation. Dahl said MBP’s check-off generated around $880,000 last year (net of refunds), based on sales of around 530,000 cattle and calves. But that amount has gone down by over $200,000 over the last few years because of smaller herd numbers and fewer cattle going to market. The situation is similar in other provinces as
producers reduce their herds or leave the industry entirely. The Canadian beef cattle herd has been declining since reaching a peak in 2005. Today, the North American cattle herd is the smallest it has been since the 1950s. But Dahl said Manitoba’s beef herd is shrinking faster than others because of the heavy impact from the U.S. Country-of-Origin Labelling (COOL) rule, the on-going after-effects of BSE and local floods. As a result, MBP finances are stretched thin and the association is becoming unable to meet its full financial assessment to the Canadian Cattlemen’s Association (CCA). All provincial beef associations contribute money to the annual operations of CCA, based on their size. The vast majority of financial support for CCA’s operating costs comes from the provinces. Dahl said MBP ended the previous fiscal year with a slight deficit, despite some “pretty significant belt-tightening.” That included holding more board meetings by conference call instead of in person, plus not attending producer meetings in neighbouring U.S. states. Because of its tight budget, MBP will not be able to fully meet its commitments
to CCA this year. Dahl said CCA allocations make up nearly a third of MBP’s annual budget. So far, MBP is missing that target by about 30 per cent. Other provinces are also reportedly having trouble meeting their CCA commitments because of revenue shortfalls resulting from declining cattle herds. Dahl said it is critical to continue funding CCA because it helps provide important services to the industry at large. CCA is instrumental in supporting trade challenges, such as the one against COOL, which has gone on for years. It also advocates for producers and speaks for them on issues ranging from the environment to government regulations. “We provide the producer’s voice to the national and international theatre in dealing with their issues,” said Rob McNabb, CCA’s general operations manager. McNabb said CCA was recently named as one of the most effective lobby groups on Parliament Hill, despite its relatively small size compared to powerhouses such as the oil and gas industry. McNabb said the decline in cattle sales and the resulting drop in check-off Continued on page 2
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MBP MEMBERSHIP TO CONSIDER CHECK-OFF INCREASE