MESSAGE FROM THE GENERAL MANAGER

Brian Lemon

General Manager

As I finish my first full year as MBP’s General Manager, I can say it continues to be a pleasure to work on behalf of you, the beef producers of Manitoba. I have the privilege to work with an excellent and committed staff, and can assure every member that you certainly get full value for your money with their dedicated effort. I also get the opportunity to work with an incredibly dedicated group of directors who give so freely of their time for the betterment of our industry. I want to start my report with a bit of a reminder of how much we value the members’ contributions to MBP’s activities through their investment of their provincial check-off dollars. It is never lost on me that the ability of MBP to deliver meaningful results for beef producers relies on a producer’s choice to support us with their check-off dollars; that it is a test every day to ensure we show value for money to producers with everything we do. Unlike some other provinces Manitoba’s provincial beef check-off is mandatory but refundable. This means that it must initially get paid on every sale, but that producers have the right to opt out of the association and ask for a refund. Some provinces work within a regime where the provincial check-off is non-refundable. While a non-refundable regime might bring more certainty to MBP’s funding levels, it also wouldn’t provide us with the same daily test to ensure we bring value to producers. To be honest, I believe that the ability to refund is a positive, that makes sure that the board and the staff are accountable to the members. I have a short message to those producers who choose to request a refund and surrender many of their membership rights in MBP. While MBP respects their decision to exercise their right to refund, I would encourage them to allow MBP to explain how we bring value to all producers, including those who choose to refund. While not able to exercise the rights of membership (vote, make motions, etc.), these producers are certainly welcome to come to our district and annual meetings to listen and to ask questions to learn about how we are working for all Manitoba producers’ benefit. I am genuinely interested to understand why individuals choose to request their refund and to explain how they continue to realize on industry benefits funded by their neighbors and colleagues. I look forward to hearing from producers who request refunds, and will engage them in conversation at the end of which they will still be free to make their choice. A concern raised during MBP’s 2016 district meetings and one we are still working to address, is how to deal with larger producers who pay significant sums of provincial check-off and who potentially refund a percentage of their checkoff dollars. They could be leaving more checkoff with MBP than smaller producers, but forfeit their membership because they chose to request a refund of a portion of the check-off paid. This involves many complicated questions and there is no easy option that make sense in every situation. It is being looked at by MBP staff and will potentially result in proposed bylaw changes. As I look back at the past year and the various issues that kept us busy, we continued to see progress on the bovine TB file. We worked with government officials to ensure nobody lets their commitment to achieving the final objective of TB freedom wane. Another disease also reared its head again this year with three confirmed cases of bovine anaplasmosis in southeastern Manitoba. The last time we had confirmed cases of anaplasmosis here the disease was still on the Canadian Food Inspection Agency (CFIA) list of federally reportable diseases. Since that time, the CFIA has determined that the disease does not pose a human health concern and doesn’t pose any trade implications thus, in this recent case MBP worked with provincial veterinary staff to inform the province’s choice of response. MBP also worked with the provincial government to ensure that productive animals were not needlessly destroyed. Predator losses were another significant priority for MBP. The file continues to be moving slower than we would like, but we are hopeful that the changes to leadership at Sustainable Development, including a new Deputy Minister well familiar with wildlife issues will bring renewed priority on this matter within the department. We continue to push both Sustainable Development Minister Rochelle Squires and Agriculture Minister Ralph Eichler to support the work of the industrygovernment working group, and an eventual pilot program to assist producers to deal with problem predators and ensure fair compensation for losses. The beef sector has a great story to tell in terms of the significant ecosystem benefits it provides. Our producers are the biggest reason why there are still grasslands on the prairies, and we need to be recognized for the benefits these perennial grasses and forages bring to the environment. We will continue to point out that our grasslands and pastures are part of the story that Premier Brian Pallister is using to convince the federal government that Manitoba deserves its own Made-in-Manitoba carbon pricing program. The Premier has been arguing that Manitoba made prior investments in clean energy (hydroelectricity) which needs to be recognized by Ottawa. In the same way, our producers have long been investing in carbon reductions by maintaining our grass and pastures as huge carbon sinks, pulling tonnes of carbon back out of the air. To ask Ottawa to recognize Manitoba’s past investments in clean energy and not recognize our producers’ past investments would be contradictory. Our grass and pastures provide benefits to air quality and the carbon footprint, to flood mitigation and water management, to biodiversity and species at risk, as well as to water quality. We have a great environmental story to tell. Crown lands was another active file in 2017 and will keep us busy in 2018. Provincial legislators, in one of their final acts prior to the Christmas break passed regulatory changes and enacted a new Agricultural Crown Lands Leases and Permits Regulation, combining and replacing the prior Agricultural Crown Lands Leases Regulation and Agricultural Crown Lands Grazing and Permits Regulation. The impetus to make a change to the regulations was Manitoba’s entry into the New West Partnership Trade Agreement, but the province used the opportunity to make broader changes to the regulations. MBP certainly supported the province’s efforts to modernize the previous regulations to bring more transparency and predictability to the allocation process. MBP provided comments to Manitoba Agriculture about where we want to see improvements in the agricultural Crown lands program, but was not consulted on the draft regulations and did not have an opportunity to comment on the proposed changes prior to them receiving Royal Assent. There is still lots of work to be done following up on the regulatory changes as much of what impacts producers is found in the policy interpretations. MBP looks forward to an open and public consultation process on the new policy development. Finally, we can’t have an annual wrap-up without mention of the weather. Weather-wise this past year was pretty good for Manitoba farmers. With the exception of some spring flooding, for the most part, most of Manitoba was able to get an early and productive start. The annual cropping sector had an incredible start due to a very dry May, and cattle producers were able to get a good start as well after a very wet and challenging fall and freeze-up in 2016. In closing, this past year has certainly had its share of challenges, but also saw a decent season as well as some better prices for our cattle. As we look forward to 2018, there is always reason for optimism. The district meetings and AGM are a great chance to get out and meet producers and hear your concerns and your ideas. I encourage you all to come out and get engaged and challenge us to continue to bring value for your check-off investments. If you are not happy with what we are doing, the only way we know is if you talk to us. If you are not a current member of MBP, I ask you to consider talking to me about why you choose not to support MBP and see if there is a way that we can bring you value. On behalf of the rest of the staff − Maureen Cousins, Chad Saxon, Elisabeth Harms and Deb Walger - I look forward to working with you and on your behalf in the coming year. Thank you.

STAFF

MBP’S 2017 YEAR IN REVIEW

Who is MBP?

Manitoba Beef Producers (MBP) is the exclusive voice of Manitoba’s cattle industry, representing approximately 6,500 producers involved in various aspects of the beef cattle industry. This includes the cow-calf, backgrounding and finishing sectors. MBP is a non-profit organization with a producer-elected board of 14 directors representing different geographic areas of the province. Its vision is a vibrant, prosperous, respected, sustainable beef industry in Manitoba. MBP’s mission is to represent the province’s beef producers through communication, advocacy, research, education, and leadership within the industry, to governments and to the public. These efforts take place to strengthen the sector’s viability, improve prosperity and ensure a sustainable future for the beef industry in Manitoba for the benefit of our beef producers and all Manitobans.

MBP’s activities are funded through the collection of check-off dollars. Two check-offs with a combined total value of $4/head is levied at the point of sale on all cattle sold in Manitoba. Of this, a $3/ head mandatory, refundable provincial check-off goes toward financing MBP’s activities of on behalf of the local beef industry, as well as its membership in organizations such as the Canadian Cattlemen’s Association (CCA) and the National Cattle Feeders’ Association (NCFA). MBP’s levy is collected under the authority of the Cattle Fee Regulation under the Cattle Producers Association Act, a piece of provincial legislation. As well, a mandatory non-refundable $1/head national check-off (NCO) is collected on all cattle sold in Manitoba. The purpose of the NCO is to promote sales of domestic and export beef and also to find better and more efficient methods of producing beef and beef cattle. To achieve this, NCO funding is used support activities of the Beef Cattle Research Council and Canada Beef. At MBP’s 37th Annual General Meeting in February 2016 the membership voted in favour of increasing the NCO from $1/head to $2.50/head marketed to help achieve the goals set out in the National Beef Strategy. The Strategy is organized around four key pillars: 1) Beef Demand: Increase carcass cutout value by 15% by 2020; 2) Connectivity: Enhance synergies within industry and connect positively with consumers, the public, government, and partner industries; 3) Productivity: Increase production efficiency by 15% by 2020; and 4) Competitiveness: Reduce cost disadvantages compared to main competitors by 7% by 2020. MBP worked with staff from the Canadian Beef Check-Off Agency to make the updates needed to the provincial agency agreements to enact the proposed increase to the NCO. It is expected to be implemented in Manitoba in the spring of 2018. Each provincial cattle association determines how their contribution to the NCO is allocated in their respective provinces. In 2017 MBP allocated 85.5 cents nationally to beef promotion and marketing activities and seven cents nationally towards national research priorities. As well, 7.5 cents was retained by MBP locally to help fund research. For additional information about MBP’s 2016-17 budget, see page 11.

How is MBP’s work funded?

How are MBP’s activities organized and executed?

MBP’s activities are guided by the board of directors’ broad direction and executed by 5.5 staff members and MBP’s Executive and Committee members. In 2017 these included General Manager Brian Lemon; Policy Analyst Maureen Cousins; Communications Coordinator Chad Saxon; Office Assistant Elisabeth Harms; Acting Project Coordinator Anne Rooban; and, part-time finance person Deb Walger. MBP also employs contract staff from time to time to deliver initiatives such as the Verified Beef Production+ Program. MBP also has two wholly owned subsidiary corporations – Manitoba Livestock Cash Advance Program Inc. (MLCA) and Manitoba Beef & Forage Initiatives (MBFI), each with their own independent staff and governance structure, but which do report information to MBP. Both the MLCA and MBFI boards have representation from MBP’s board and regularly report information to MBP. MBP directors each sit on internal committees where they provide input and help develop positions around specific types of issues or opportunities. In some instances topics overlap between committees, such as those related to water management which can have both production management and environmental impacts. Some committees serve an or-

As well, MBP is represented at several national and provincial organizations and external committees. This affords MBP the opportunity to bring forward for discussion specific Manitoba perspectives on topics such as business risk programs, traceability, animal care, research, trade, sustainability initiatives and many more. Examples include:

Manitoba Beef & Forage Initiatives − Board of Directors: Ramona Blyth (President), Peter Penner, Dave Koslowsky, Larry Gerelus, Larry Wegner Canadian Cattlemen’s Association – Heinz Reimer, Ramona Blyth, Tom Teichroeb Canada Beef – Heinz Reimer National Cattle Feeders’ Association – Larry Schweitzer, Ben Fox and Brian Lemon Canadian Cattle Identification Agency – Larry Gerelus Cattle Implementation Plan – Maureen Cousins Beef Cattle Research Council − Larry Wegner Canadian Roundtable for Sustainable Beef – Brian Lemon or Maureen Cousins Manitoba Forage & Grassland Association – Gord Adams Manitoba Livestock Cash Advance – Heinz Reimer (Chair), Larry Gerelus, Larry Wegner, Tom Teichroeb, Ken McKay Bovine TB Task Force Committee – Bill Murray, Larry Gerelus, Brian Lemon, Maureen Cousins Beef Value Chain Roundtable – Brian Lemon or Maureen Cousins Assiniboine River Basin Initiative – Gord Adams and Maureen Cousins Invasive Species Council of Manitoba – Bill Murray Manitoba Livestock Manure Management Initiative – Maureen Cousins

COMMITTEES

EXECUTIVE COMMITTEE

Ben Fox President Ramona Blyth Vice President Tom Teichroeb 2nd Vice President Peter Penner Treasurer Dianne Riding Secretary

ANIMAL HEALTH

Gord Adams Chair Bill Murray Vice-Chair Heinz Reimer Ken McKay

AGM/NOMINATIONS/ RESOLUTIONS

Dave Koslowsky Chair Dianne Riding Vice-Chair Stan Foster Larry Wegner

COMMUNICATIONS

Dianne Riding Chair Gord Adams Vice-Chair Ramona Blyth Larry Gerelus

CROWN LANDS

Bill Murray Chair Stan Foster Vice-Chair Larry Gerelus Ken McKay Robert Metner

ENVIRONMENT

Larry Wegner Chair Heinz Reimer Vice-Chair Bill Murray Stan Foster Ken McKay

FINANCE

Peter Penner Chair Tom Teichroeb Vice-Chair Heinz Reimer Ramona Blyth Dianne Riding

GOVERNANCE

Dave Koslowsky Chair Peter Penner Vice-Chair Tom Teichroeb Robert Metner

PRODUCTION MANAGEMENT

Tom Teichroeb Chair Ramona Blyth Vice-Chair Gord Adams Peter Penner Robert Metner

RESEARCH

Larry Gerelus Chair Larry Wegner Vice-Chair Peter Penner Robert Metner

ganizational function, such as periodically reviewing MBP’s bylaws, helping to Eichler and his departmental staff, MBP also engaged with other key ministers organize the district meetings and annual general meeting or planning MBP’s and their staff including Sustainable Development Ministers Cathy Cox and Roparticipation in events and communications activities aimed at promoting the chelle Squires and Infrastructure Minister Blaine Pedersen, and with government industry. agencies such as Manitoba Agricultural Services Corporation. Growing the herd Strategic direction as to tackle other issues and opportunities, be that addressing labor shortages, MBP’s activities focus around three strategic objectives: telling the industry’s making investments in research and knowledge transfer, reducing regulatory burstory via advocacy and enhanced communications; building the industry with den or seeking ways to add value to our high quality Manitoba beef. A multiinnovation, improved economic competitiveness and profitability; and, serving pronged approach is required to help drive future growth and MBP remains comMBP’s members by developing the organization and its capacity. These strategic mitted to working with governments and members of the value chain to achieve objectives dovetail with MBP’s mission to strengthen the viability of Manitoba’s sustainable growth in the province’s beef and cattle industries. beef sector and to ensure a sustainable future for our province’s beef industry. partmental staff about the government’s goal to grow Manitoba’s cattle herd to will require a collaborative effort to address the aforementioned items, as well

Wildlife management

TELLING OUR STORY: ADVOCACY ACTIVITIES One of the main issues on which MBP worked in 2017 was wildlife management. Negative interactions related to wildlife are among the most frequently 2017 in context cited concerns beef producers raise with MBP. These include challenges such as: The operating environment affecting cattle production – be that driven by problem predators preying on cattle and calves; flooding and associated damnatural or economic factors or public policy, helped shape MBP’s activities in age caused by beavers; crop and other damages caused by waterfowl, birds and 2017. other species; and, the threat of the transfer of diseases from wildlife to livestock. From a production perspective, conditions were mixed. A strong late winter Predation is a key concern. Producers want and need their cattle to be safe storm led to some cattle losses in mainly the western and southwestern areas of and healthy. Wolves, coyotes and other predators kill, harass or injure livestock, the province. The threat of significant spring flooding in some parts of Manitoba leading to significant economic losses and production challenges. In 2017 MBP was a concern. Fortunately, due to favorable spring met with both Sustainable Development Minister weather conditions the extent and duration of flood- Cathy Cox and later Sustainable Development Minising was considerably reduced. By later summer and ter Rochelle Squires and Deputy Minister Rob Olson fall dry conditions were becoming more common, and departmental staff to describe the devastating leading to a small number of wildfires, some cattle impact that predation is exacting and how frustratcoming off pastures early and concerns about feed ing it is for affected beef producers. Similar concerns supplies in some areas. From an economic perspec- were also raised with the Agriculture Minister and tive, prices in 2017 were up from 2016 but not at the departmental staff. historic levels seen in 2015. MBP identified to the province a number of The number of beef producers continued to strategies it believes could help reduce the risk of trend downward in Manitoba, with the average num- predation. This includes financial support for a pilot ber of head on operations increasing. Data released project aimed at reducing the risk of predation, rein May 2017 from Statistics Canada’s 2016 Census moving problem predators and ensuring producers of Agriculture showed there are now approximately are fairly compensated for losses. The payment of 6,500 beef operations in Manitoba, down from 7,000 compensation for all predation-related losses, not when the 2011 Census of Agriculture was conduct- just verified kills, as well as finding ways to substaned. On cow-calf operations, the average beef herd tially reduce the risk of future losses remain as top rose from 74 head in 2011 to 84 in 2016. Feedlot areas of concern for the beef industry. MBP sought operations grew on average from 185 head in 2011 Manitoba Beef Producers added virtual reality to continued support for the Problem Predator Removto 212 head in 2016. On a positive note, there was its library of promotional materials in 2017. The al Program and noted there is value in building this again a slight uptick in the size of Manitoba’s over- On The Ranch VR system debuted at Discover type of capacity among both producers and the trapall cattle herd. Manitoba had 1,175 million head of Agriculture in the City 2017, which was held at ping community. MBP also believes there is value in cattle as of July 1, 2017. That was up 1.7% year over The Forks Market in March. the province providing strong wildlife management year and up 10.3% from January 1, 2017. Statistics programs, including population counts to gauge Canada reported in July that Canadian cattle producers retained slightly more predator populations in agro-Manitoba as well as their dietary habits. breeding stock in 2017. MBP also continued to co-chair the Livestock Predation Protection Working Within this context, helping to ensure there is a climate in which the prov- Group (LPPWG). It includes representatives from provincial and federal departince’s beef industry can grow and thrive remains a priority. MBP believes there ments and agencies, livestock commodity groups and the Manitoba Trappers are tremendous opportunities to build the province’s beef herd if the business, Association. Its purpose is to review existing predator management initiatives regulatory and infrastructure conditions are right. Throughout the year there and provide recommendations to the Manitoba government around improved were extensive interactions with both provincial and federal elected officials and strategies and tools to help deal with it. public servants on an array of issues and opportunities facing Manitoba’s beef in- Countless acres of privately-owned and Crown land well suited to raising dustry. The following are some of the highlights of MBP’s advocacy work in 2017. cattle have been flooded due to beaver activity, and infrastructure such as roads Growing the herd at past MBP AGMs have called for the provincial government to change the Manitoba’s Progressive Conservative government moved into the second trapping season regulations from a restricted to an open season for beavers and year of its mandate and a number of its programs, policies and legislative chang- wolves on occupied agricultural areas. MBP has asked that this be considered. es will impact future growth in the beef industry. In its April budget the provincial Another resolution called for a $50/beaver removal incentive paid by the progovernment committed to a broader Livestock Growth Strategy. This is expected vincial government. MBP asked the provincial government to explore a beaver to dovetail with its Protein Strategy. Details of both initiatives are still being de- removal incentive beyond the limited support provided through the Farmland veloped. MBP sought assurances from the provincial government that if there are Beaver Damage Control program that was offered through Growing Forward 2. opportunities to integrate the beef sector into these strategies that they must MBP has also raised concerns with the province and Manitoba Agricultural be realized. Services Corporation about damage being caused by other species, including MBP continued to engage with Agriculture Minister Ralph Eichler and de- blackbirds and others. damaged. Effective strategies are needed to manage this. Resolutions carried pre-BSE numbers. Early in the year MBP identified to the Minister several areas Crown lands it deems key to achieving herd growth, including ensuring that growth is driven Beef producers make extensive use of provincial agricultural Crown lands by market demand. Other important elements related to growth include: hav- for both pasture and forage purposes. Ensuring these lands remain available to ing strong business risk management tools reflective of cattle producers’ needs; beef production is essential for future growth in the sector. MBP continued to a positive regulatory environment that encourages growth; sound Crown land advocate with the Manitoba government on several matters related to Crown policies; retaining Manitoba’s community pastures; opportunities to restore acres lands including: the need for informed access; challenges related to wildlife manto cattle production and to provide it at economically feasible prices; improved agement on Crown lands; stocking rates; timely advertising of lands available for wildlife management to reduce risks such as predation, crop damage, and, flood- lease; concerns related to lease hold improvements; and rental agreements. The ing caused by beavers; effective water management strategies; and, having a ability of new entrants to access agricultural Crown lands was also raised as both robust beef value chain and the ability to access markets. a concern and an opportunity. While many of these discussions around herd growth were with Minister In the fall the provincial government advised MBP that as part of Manitoba’s

entry into the New West Partnership Trade Agreement a change was required to Crown lands regulations, specifically that non-Manitobans will now be allowed to apply to lease agricultural Crown lands in this province. MBP provided a detailed submission to the province on challenges related to both the Agricultural Crown Lands Leases Regulation and the Agricultural Crown Lands Grazing and Hay Permits Regulation and associated policies. For example, MBP stated that it is important that Crown lands be distributed in the most predictable and transparent manner possible and that their use be both effective and efficient for producers. MBP also identified that much of the negative experience and dissatisfaction that cattle producers have had with the Crown lands program had been based on policy interpretation and implementation by provincial officials going beyond the regulatory requirements, such as the relation between animal unit months and the ability to lease lands. As well, MBP indicated that it believes that leases and permits should be restricted to producers who have an ownership stake in the cattle being grazed on the Crown lands and in the case of hay permits, to producers who own cattle. And, MBP raised concerns about another issue cited by producers – the need for meaningful follow-up and enforcement of the Crown lands regulations. Anecdotal examples brought to MBP’s attention include but are not limited to instances of long-term lease holders who are no longer involved in the cattle industry, and lease holders who re-lease Crown lands to others. In late December the Manitoba government released its new Agricultural Crown Lands Leases and Permits Regulation. This is an amalgamation of the two separate regulations related to forage leases, hay and grazing permits, and cropping leases, with several changes. In the fall of 2018 Manitoba will move to a tendering process for the leases and permits. MBP noted the former system of allocation was often frustrating for producers and lacked transparency, so having a more open process is important. However, MBP does have a number of concerns, such as the effect of this change on costs to producers.. The provincial government will be consulting on Crown lands policies in 2018. Among MBP’s priorities and concerns are: all Crown grazing and forage lands should remain available for cattle production, along with the ability to secure hay permits; Crown lands must remain affordable and available to Manitoba producers; the bid process for the land should be open and transparent, providing clear pricing signals to producers; and, recognition that beef producers are sound stewards of the lands and that provincial conservation objectives should work in balance with the objectives of producers.

Next agricultural policy framework

MBP provided considerable feedback to federal and provincial officials about what Manitoba’s beef industry would like to see in the next agricultural policy framework. The Canadian Agricultural Partnership (CAP) will replace Growing Forward II when it ends March 31, 2018. Among the priority items for which MBP sought continued support in the framework were: sound business risk management programs, including the Western Livestock Price Insurance Program; the Verified Beef Production+ Program; the Association of Manitoba Community Pastures; investments in research endeavors such as Manitoba Beef & Forage Initiatives Inc.; and, the Environmental Farm Plan Program. MBP also identified challenges related to labour supply, succession planning and attracting new entrants as areas where CAP initiatives could be beneficial. Lack of high-quality labour is one of the biggest issues constraining the feeding and processing sectors and it also affects cow-calf producers. Attracting young/ new entrants to the industry is equally important if the provincial herd is to grow. MBP requested the framework include programs to assist entrants to acquire the necessary capital and financing to get started. Further, MBP requested that it include programs to train, educate and attract labour to the sector. And, MBP asked that the framework provide improved financial supports to new beef producers and better tools to assist in managing farm transfers/successions. MBP cited the value in federal-only programming available under previous agricultural policy frameworks and sought continuation of these types of initiatives. For example, access to Agri-Marketing funds was instrumental in advancing efforts to eradicate bovine tuberculosis from the domestic cattle herd and wildlife in and around Riding Mountain National Park. MBP asked that access to programs like Agri-Marketing and Agri-Risk Initiatives continue to be available to provide provincial associations with the ability to access support to advance local initiatives and deliver objectives that benefit both local producers as well as potentially having valuable national impacts.

Insurance and lending tools

Each year MBP provides input to the Manitoba Agricultural Services Corporation (MASC) about its programs as effective business risk management programs and lending tools are very important to the beef sector. Regarding the Wildlife Damage Compensation Program for Crop Damage, MBP cited concerns about the lack of coverage for corn or other crops intended for extended grazing (alternative feeding systems). MBP also noted ongoing producer concerns related to blackbird damage to corn as well as damage caused by birds to silage wrap. Regarding the Wildlife Damage Compensation Program for Livestock Predation, MBP reiterated the importance of having a simple and effective claims confirmation process. MBP also noted the value in MASC’s continued representation at the Livestock Predation Protection Working Group. Silage corn insurance coverage, as per the concerns raised in the fall of 2016 following excess moisture conditions, was again raised with MASC. MBP had asked that MASC amend its coverages and policies for the 2016 production year and going forward so that silage corn crop insurance covers the loss of the producers’ ability to use the corn as a silage feed source and also fully compensates producers for this type of loss. MBP believes it is inappropriate to provide coverage assuming that producers are able to shift management plans or realize any latent value from a field planned as silage. MBP discussed with MASC calculation methods with respect to lost production quality under greenfeed insurance. MBP suggested that the current mechanism to adjust production of forage crops (including hay, greenfeed and silage corn) for poor quality does not adequately account for the true loss of feed value. It was suggested to look at other measures such as total digestible nutrients or using a non-linear formula to better account for quality losses. MASC agreed to give this further consideration.

Mitigating other potential risks

Helping finding ways to mitigate risks to beef production is extremely important and an ongoing area of activity for MBP. In 2017 there were continued discussions with both the provincial and federal governments about the importance of having effective water management strategies. This includes the need for the swift completion of the Lake Manitoba and Lake St. Martin outlet channels to help alleviate future flooding related to Lake Manitoba. MBP has asked that any producers whose operations are affected by the construction of the Lake Manitoba outlet channel be fairly compensated for any immediate and lasting disruptions to their operations. There are ongoing discussions with officials about other water-related and infrastructure-related challenges around the province and finding ways to help mitigate them. MBP wrote to Premier Brian Pallister about concerns brought forward from

MBP directors and staff were in Ottawa in May to meet with Members of Parliament and federal government staff. Among the MPs the MBP delegation met with was Robert Sopuck, MP for Dauphin-Swan River. From left to right: Sopuck, Director Dianne Riding, President Ben Fox, Policy Analyst Maureen Cousins and General Manager Brian Lemon.

beef producers about how water is being managed beyond our borders, especially in the watersheds which directly drain water into Manitoba. These concerns were raised in the context of flooding. MBP believes direct government-to-government dialogue and collaboration on water management issues is essential, both to improve water management across shared watersheds for mitigation of flooding and drought and also for improving water quality. While MBP recognizes the challenges all agricultural producers face in managing water, it is essential these be addressed in a responsible manner that does not simply transfer the drainage challenges from one area to the next. MBP remains a member of the Assiniboine River Basin Initiative, a collaborative initiative working across jurisdictions to create a resilient Assiniboine River Basin with respect to water-related issues. MBP also continued its involvement with the Aquanty project which is developing a HydroGeoSphere modelling system of the Assiniboine River Basin and its sub-basins. Once completed this decision-support tool will focus on the role forages and grasslands can play in helping to mitigate floods and droughts.

The Canadian Animal Health Coalition (CAHC) is undertaking a national aging producers to undertake practices that enhance cattle production as well animal health emergency management project, the goal of which is to enhance as habitats for specific species at risk. This could include fencing that supports Canada’s livestock industry’s capacity for managing sector-wide disease-related improved grazing, watering systems designed to improve cattle distribution, naemergencies. MBP worked with the CAHC on the development of an associa- tive pasture establishment and other practices. As of December 31, 2017 there tion-level plan to help it deal with an emergency such as a foreign animal dis- was $219,000 allocated to projects with signed agreements with landowners. ease. As well, a set of producer-focused guidelines is being developed to help The intent of the three-year program is to deliver information and incenManitoba producers understand what they should expect on their own opera- tives to cattle producers to enhance pastureland with the goal to improve grass tions and how to develop strategies to deal with a potential emergency. This quality and maintain a healthy habitat for species at risk. These SARPAL projects work will continue in 2018. are targeting prairie native grassland in an area that includes the Poverty Plains, The environment Cattle producers play a vital role in conserving species because their land manMBP provided extensive feedback to the Manitoba government in 2017 on agement and grazing activities can co-exist and help meet the needs of many of several environment-related matters. those species. The program runs until March 2019. In March MBP unveiled its carbon policy. Ensuring that Manitoba’s beef producers are recognized for their work in reducing greenhouse gas (GHG) emis- Animal health sions is one of the key recommendations in MBP’s policy. With respect to carbon MBP is pleased that progress continues to be made on the bovine tuberpricing MBP’s position is that on-farm agricultural emissions should be exempt. culosis (bTB) issue. No live animal testing was planned by the Canadian Food There should be investments in research to further reduce GHG emissions such Inspection Agency (CFIA) for the 2017-18 season in the Riding Mountain Eradias improved forage varieties and grazing strategies. Investments in initiatives cation Area (RMEA). This was based on the assumption that wildlife submissions and tools to enhance producer resilience related to climate change and severe and livestock slaughter data continue to be abundant and results consistently weather events are also very important to the beef industry. Further, it is essen- negative. Submission of hunter-killed samples remains key for wildlife surveiltial to ensure trade competitiveness is maintained by aligning implementation lance. of any additional costs and credits with those of our major trading partners. In 2017 two new provincial government grant programs were made available Finally, governments should enact policies to encourage that agricultural lands to help fund activities in the RMEA. One grant is targeted at RMEA producers remain in (or are returned to) pasture and forage production and grasslands, thereby supporting Manitoba’s cattle industry. MBP was pleased when the province announced in October that its proposed Made-in-Manitoba Climate and Green Plan exempts from the carbon tax fuel used on farms, as well as agricultural emissions. Manitoba’s $25/tonne carbon pricing takes effect in 2018. The Plan is built on four proposed strategic pillars: climate, jobs, water and nature and includes 16 keystones for priority action. For example, the water pillar focuses on agriculture and land use, wetlands and watersheds, flood and drought and water quality, while the nature pillar looks at elements such as wild species and habitat and conservation. MBP provided extensive input into the proposed plan. In the fall, the Manitoba government consulted on three separate but intertwined initiatives around water management and watershed planning. One involved a new ecological The announcement of $1.2 million in funding under the Species at Risk Partnerships on Agricultural Land (SARPAL) initiative was made on March 2. From left to right: Tim Sopuck, CEO of the Manitoba Habitat Heritage Corporation; Winnipeg South MP Terry Duvguid; Christian Artuso of Bird Studies Canada; goods and services program -- Grow- Shane Robins, Executive Director, Manitoba Conservation Districts Association and Brian Lemon, General Maning Outcomes in Watersheds (GROW). ager, Manitoba Beef Producers. It is based on the Alternative Land Lyleton Grasslands, Blind Souris River Valley, Belleview and Maple Lake Region. Use Services program and built around the following principles: sustainability; taking part in an on farm risk assessment (OFRA) aimed at reducing interactions a targeted, watershed-based approach; locally-delivered, farmer focused; mea- between livestock and wildlife. Producers in the RMEA Core Area can apply for surable results; and, use of evidence-based evaluation systems. MBP strongly a grant of $500 and those outside of the Core Area are eligible for a $150 grant requested financial recognition through such programming for the extensive for completing the OFRA. To be eligible for the risk assessment grant, producecosystem services provided by beef producers. ers must also complete the linkage of their Premises Identification location(s) in MBP also provided input into the two related consultations which focused the RMEA to their Canadian Cattle Identification Agency accounts. This linkage on watershed-based drainage and water resource management, as well as the will allow animals examined for bTB at slaughter to be traced back to the herd role of conservation districts in managing water. The province committed to a level and further demonstrate that livestock shipped from the RMEA are free of no net loss principle of water retention. In December Manitoba introduced The this disease. Producers who complete this linkage are eligible to apply to for a Sustainable Watershed Act aimed at strengthening watershed management further payment of $150 as part of the Manitoba Bovine TB Data Incentive. through measures focused on wetland protection, drainage management and Work continued on the creation of a scenario tree model which will examine enforcement, water quality and a modernized conservation districts program. the risk of bovine TB occurring. Manitoba Agriculture staff evaluated biosecurity MBP will provide input on this proposed legislation in 2018. measures such as the use of cattle guard gates as a deterrent to wildlife. MBP appreciates the participation of affected producers in these initiatives and recSARPAL ognizes governments for their commitment to these important projects. MBP MBP received $750,000 in funding from Environment and Climate Change has asked that federal and provincial government departments and agencies Canada for a Species at Risk Partnerships on Agricultural Lands (SARPAL) proj- continue to provide supports, programs and policies to maintain the regulatory ect. In 2017 MBP began delivering voluntary, incentive-based habitat enhance- bTB-free status in the domestic herd and have United States import restrictions ment actions with beef producers in areas of southwestern Manitoba to protect lifted. These efforts should include an emphasis on completing disease eradicaimportant habitats for at-risk plant and animal species. While contracting ex- tion efforts and then shifting to prevention activities. MBP has sought the conperts at Manitoba Heritage Habitat Corporation on this initiative, MBP is encour- tinuation of the TB Coordinator Allan Preston’s position under the new Canadian

Agricultural Partnership. Elsewhere on the animal health front, MBP has asked the federal government to consider improved labeling of feed containing potentially dangerous concentrations of ergot to ensure producer awareness so they are able to better manage this and other contaminants. MBP said that current research must be taken into consideration to ensure the regulatory climate reflects existing conditions and knowledge of contaminants such as ergot. Ergot can have very serious animal health implications and MBP believes it is very important that producers are armed with clear information about what they are feeding their cattle. In August 2017, bovine anaplasmosis was reported in southeastern Manitoba, the first time since 2013. It is a bacterial disease that attacks red blood cells. It has no impact on human health or food safety. It is no longer a federally reportable disease, so this changes how the CFIA deals with it in that there is no testing of imported animals for it, and no destruction of infected animals. MBP believes that, given the occurrence of anaplasmosis marginale in Manitoba and in neighbouring states, as well as the ability of individual producers to manage it within their herds, the disease is best managed by private veterinarians working with producers and through industry awareness. MBP has requested that the provincial government continue to cover the cost of the lab fee for producers testing their cattle for bovine anaplasmosis, and, that Manitoba Agriculture continue to engage with MBP about the possibility of using surveillance strategies to determine the prevalence of the disease in ticks and livestock.

Federal matters

MBP representatives visited Ottawa in late May and early June, meeting with Members of Parliament such as James Bezan, Robert Sopuck, Ted Falk and Larry Maguire to discuss issues such as water management, animal transportation requirements, trade, carbon pricing, the next agricultural policy framework, growing Manitoba’s beef herd, and supporting research and innovation, among others. As well MBP representatives met with staff from Agriculture and Agri-Food Canada, Health Canada and the CFIA to discuss topics such as bovine tuberculosis, veterinary drug policy changes, and business risk management programs. MBP also participated in outreach activities undertaken by the National Cattle Feeders’ Association to federal MPs and departmental officials in Ottawa. During the year MBP provided input into several federal government consultations. These included proposed changes to Canada’s Food Guide, as well as the creation of a food policy for Canada. MBP’s position with respect to both consultations was that the federal government should recognize the important role that beef can play in providing a balanced diet. MBP noted that beef producers are already taking many steps to ensure that the proposed goals of Canada’s food policy are being achieved, i.e. growing high quality, safe, nutritious and affordable food while conserving our natural resources. MBP provided feedback regarding the renegotiation of the North American Free Trade Agreement. MBP believes it is essential that the existing ability of the three member nations to enter each other’s respective markets without tariffs or quotas on beef and live cattle must be retained. As well, it is important that the rules of origin which are used to determine the types of products that can be traded duty free among Canada, the US and Mexico remain as they are currently written. MBP cited the importance of preserving the dispute settlement mechanisms within NAFTA. And, MBP asked that there be continued efforts to ensure that technical barriers to trade within agreements such as NAFTA and others are mitigated or eliminated wherever possible. MBP raised concerns with respect to proposed federal tax changes and their potential implications for beef producers. MBP cautioned that the changes were inconsistent with other federal economic policies, and could lead to a retraction of the beef industry as they would make the sector less competitive in the international marketplace. MBP asked that the government consider exempting agriculture corporations, and individuals and families from these proposed changes. MBP was pleased when the federal government announced some changes that reflected concerns from the agriculture sector. Other key issues on which MBP engaged with the federal government included: proposed changes to the animal transportation regulations that could impact hours in transit; traceability requirements; movement reporting; The Fisheries Act; and, changes to Canada’s Food and Drug Regulations and Health Canada’s policies in this area related to how veterinary products are used, prescribed, and imported for own use.

Building sectoral capacity: research

Among MBP’s strategic objectives are building Manitoba’s cattle industry through innovation, improved economic competitiveness and profitability. Investments in research, innovation and knowledge transfer are integral to the industry’s future success. Producers, through their check-off dollars play a key role in this area. In 2017 14.5 cents of every national check-off dollar collected in Manitoba went to research. MBP directs the specific projects for 7.5 cents of this, with the other 7 cents determined by national priorities through the work of the Beef Cattle Research Council. Each year MBP also makes significant investments in research from your provincial check-off. In 2016/17 MBP budgeted to invest approximately $155,000 in research. Some recent areas of research focus include: fetal programming, forage variety trials, needle-free injection systems and bovine tuberculosis. As well, MBP remains a key partner in Manitoba Beef & Forage Initiatives Inc. (MBFI), the collaborative beef and forage research and demonstration farm at three sites in the Brandon area. The other partners are Manitoba Agriculture, Manitoba Forage & Grassland Association and Ducks Unlimited Canada. MBFI MBP continued its involvement with Great Tastes of Manitoba in 2017. MBP Meat Expert Adriana Findlay and Dez Daniels presented six dishes over two episodes. The 2017 episodes will be replayed on CTV Manitoba in the spring of 2018.

also receives input and leadership from producers, academia and other industry stakeholders across Canada. MBP strongly believes that the type of applied research and knowledge transfer activities being undertaken through MBFI will play a critical role in advancing Manitoba’s beef and forage industries, ensuring they are well positioned for future generations of producers. MBFI is a centre of agricultural innovation engaging in science-based applied research to benefit valuable ecosystems, improve producer profitability and build social awareness around the beef and forage industry. MBFI provides a key venue to demonstrate new technologies and practices for producers, policy makers, the private sector, and the general public. It provides valuable opportunities such as the ability to: • test foundational research concepts at the field level and produce tangible results; • demonstrate to producers innovative and sustainable practices in a practical and hands-on way; • provide training grounds for students and new professionals entering into the sector; and • improve the industry’s connectivity and build a trusting relationship with the consumer and public. MBFI’s research priorities focus on forage and grassland productivity, nutrition and feed efficiency, environmental sustainability, animal health and welfare, beef quality and food safety. In 2016-17 there were 22 research and demonstration projects, some led by Manitoba Agriculture staff and some by researchers from various institutions including Agriculture and Agri-Food Canada, Assiniboine Community College, Brandon University, the University of Manitoba and the University of Winnipeg. Recent research activities have focused on areas such rotational grazing, soil health, shelterbelts, riparian area management, extended grazing, weed control, pest management and forage selection. Demonstration projects are another important component of MBFI’s work. Several well-attended knowledge transfer events were held in 2017. These included the 1st Street Pasture Day, a hands on soil health workshop, Brookdale summer pasture tour, and low stress cattle handling workshops. In 2017 construction began on a learning centre at the Brookdale site that will host groups, students and special events. It is targeted, targeted to open in spring 2018. MBP continues to provide financial, administrative and governance support to MBFI. Organizationally the direction and activities of MBFI are overseen by an elected board of directors. Management of the MBFI is led by a board of directors bringing producer perspectives and partner representatives. MBFI’s president is Ramona Blyth, who is also vice-president of MBP. A Communications Committee is tasked with raising public awareness of the research and extension work being undertaken at the farm sites. A Research Advisory Committee, comprised of partner representatives as well as academic and producer representatives provides guidance on the establishment and execution of MBFI’s research priorities. MBFI receives significant funding through Growing Forward 2, as well as financial, land, cattle and gift in kind contributions through its partners. MBP thanks our MBFI core partners, MA, DUC and MFGA and all our other generous partners (including corporations, companies and academic institutions) for the significant roles they played in envisioning this important initiative, doing the legwork to take it from conception to inception and for their ongoing commitment to its success. Private stakeholder interest and support for MBFI’s work continues to grow and is greatly appreciated. Together we are creating a vibrant, prosperous and world-leading beef and forage industry in Manitoba. Visit www.mbfi.ca to learn more.

Other activities

In January MBP hosted a well-received Canadian Cattlemen’s Association(CCA) Town Hall in Ashern. It was an opportunity for producers to hear a national perspective on topics such as trade, marketing beef to domestic and international markets, the labour supply, beef research, and sustainability. A market forecast was provided by Canfax staff. At its fall district meetings MBP partnered with 4-H Manitoba to hold Emerging Beef Leaders Forums at three locations, part of efforts to get more young producers involved with MBP. After the success with our Young Producers Forum at the 38th AGM, MBP felt this was another step in that direction. The year closed with a new producer engagement event, a National Checkoff (NCO) Town Hall in MacGregor featuring speakers from the Canadian Beef Check-off Agency, Canada Beef, the Beef Cattle Research Council and the CCA to explain to producers how the NCO is utilized on behalf of the industry.

TELLING OUR STORY: COMMUNICATIONS

Taking advantage of technology and continuing to broaden our audience were two of the highlights for MBP from a communications perspective in 2017. With more and more information available to the public it is critical that we strive to tell the industry’s story, especially around areas such as animal care and environmental stewardship. Fortunately for us the avenues we have to tell that story continue to expand. In 2017 MBP added virtual reality (VR) to its collection of display materials and the investment in the On the Ranch VR system has been very well received. The four videos in our library were shot by our friends with the Saskatchewan Cattlemen’s Association who generously allowed us to use them. Filmed on a cow-calf operation similar to any we’d find in Manitoba, the videos take the public right to the ranch and allow them to stand in the pasture with the cattle. Each video was shot with a 360 degree camera giving the viewer an incredible immersive experience. People also hear a story about life on the farm and the pride and passion of Canadian producers. Not surprisingly the videos have proven popular at the events we attend. During Discover Ag in the City at The Forks Market, there were long lineups to try out the VR headset, including many who had never been to a ranch. The most common reaction to the videos was “that is so cool.” We also used the headset at other major events such as the Royal Manitoba Winter Fair, Red River Ex, Open Farm Day 2017 and during an evening at the Canada Games Cultural Centre. Looking forward, MBP is investigating options to expand our library with videos shot here in Manitoba and to acquire more VR headsets to allow more people to experience life on the ranch. Another highlight in 2017 was the installation of a new display at the Bruce D. Campbell Farm and Food Discovery Centre. Located south of Winnipeg, this tremendous facility was unfortunately lacking a strong beef industry presence. Using funds donated by the Man-Sask Cattlemen’s Golf Tournament we created a new display that touches on areas of importance to the industry. The display is comprised of two panels, one with a focus on general Manitoba beef industry facts as well as information about the industry’s environmental footprint. The other looks at beef’s unique nutritional profile as well as the use of growth promotants in beef production (see accompanying photos). We have plans to add a VR headset to this display in 2018. Efforts to reach new audiences with our messaging received a shot in the arm in 2017 when MBP partnered with QX104 radio in Winnipeg, the city’s most prominent country music station and consistently a top two station in the ratings. Throughout the summer and early fall, MBP was featured prominently on the station, particularly on their noon hour show, with a number of radio spots promoting the provincial beef industry and dispelling myths about beef production. Along with the radio spots, recipes featuring beef were included in QX 104’s widely distributed electronic newsletter. The six radio spots rotated throughout our four month campaign included messaging on the environment, animal welfare, hormone and antibiotic usage, recipes and beef’s role in a healthy diet. Here is an example of one of the spots, this one focusing on the environment:

Voice 1: Manitoba Beef Producers presents...MYTH BUSTED! Beef myth number seven:

Voice 2: Greenhouse gas from cow production is a disaster and it’s getting worse! Voice 1: Actually, it’s not! And it’s not! In Canada producing 1 kilogram of beef now creates 15 per cent less greenhouse gases than it did in 1981! So really, when you get to the meat of the issue, we have a shrinking environmental hoofprint! Another myth busted courtesy your Manitoba Beef Producers – find info, recipes and more – at mbbeef.ca!

Overall, we were happy with the campaign on a number of levels. Thanks to the solid work of QX104 staff in creating attention grabbing spots, we received a great deal of positive feedback. We also received some negative comments which allowed us the opportunity to correct misperceptions held by members of the public. Additionally, partnering with QX104 helped us broaden the audience we are reach with our messaging as not only are they one of Manitoba’s most popular stations, but demographically they attract a vastly different audience than our Eat Like An Athlete spots on TSN1290 Radio. The station also has a strong geographic range, further increasing our reach. Speaking of TSN1290, MBP continued to promote the nutritional attributes of beef on the station throughout 2017 with our Eat Like An Athlete campaign. In the early months of 2017 MBP was featured on Winnipeg Jets broadcasts. We then moved to their Winnipeg Blue Bombers pregame and halftime broadcasts throughout CFL season. Our 30 second spots highlighted recipes that are quick and easy to make without cutting corners on nutrition. Aimed at busy families, athletes and anyone interested in an active lifestyle, the recipes are packed with all the nutrients we need to fuel our bodies for the big game or an evening walk. As the slogan states, If You Can’t Play Like An Athlete, You Can Still Eat Like One. MBP continued its involvement in the popular Great Tastes of Manitoba on CTV Manitoba, the longest-running television program in the province. As in past years beef was featured in two episodes. Keeping in theme with the Canada 150 celebrations, MBP’s Beef Expert Adriana Findlay used our first episode to present three unique Canadian dishes: beef tourtiere, pulled beef poutine and a whiskey maple Tbone steak. The second episode focused on meals for the family: corned beef cups, steak cobb salad and beef sirloin lasagna. Our member communications efforts remained a priority too. Our primary outreach vehicle continues to be our newspaper Cattle Country which enjoyed another strong year. Our biweekly E-Newsletter has proven to be a nice supplement to Cattle Country and the number of subscribers grows monthly. If interested in receiving the E-Newsletter contact MBP Communications Coordinator Chad Saxon at csaxon@ mbbeef.ca.

Serving our members: looking ahead

In closing, MBP will continue to advocate on behalf our members as we work to advance Manitoba’s beef industry. Many familiar issues will be revisited in 2018, from growing the herd, to predation, to Crown lands and more. New issues and opportunities may also emerge and MBP’s board of directors and staff will be there to tackles them. As always, our organization is stronger when we hear from our members, so please do not hesitate to reach out to us at 1-800-772-0458 or via email at

info@mbbeef.ca. MBP General Manager Brian Lemon addresses members during the District 8 meeting in November. The 14 district meetings were held throughout the province in October and November.