Manitoba Beef Producers 2019 Annual Report

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MESSAGE FROM

THE PRESIDENT TOM TEICHROEB, PRESIDENT

Although 2019 was one of the most difficult years in recent history, I am convinced the best is yet to come because the cattle sector has some of the most driven and resilient producers in agriculture. I thank each of you for your commitment and dedication to Manitoba Beef Producers (MBP). Ongoing initiatives and advocacy efforts by MBP’s staff and directors are possible because of your membership and participation in informing our policies and direction. This is truly appreciated. Changes to the Manitoba government’s Agricultural Crown Lands (ACL) regulations consumed much of MBP staff and directors’ time in 2019. Government consultations with MBP and producers were held through 2018 and into spring 2019. MBP provided its position on possible changes to the province in April 2019 after a thorough review and due diligence in terms of getting feedback from a significant number of producers, and our directors and staff. The new ACL regulation was announced in September after the provincial election. Although MBP was pleased with some of the changes like improved enforcement, and transparency around the auction and bidding process, others were extremely disappointing. MBP stood firm behind its members in defending both family and unit transfers, first right of renewal, as well as informed access. The province later committed to amend the regulations regarding the first right of renewal. This will require a public comment period. An inclusive consultation process will prove to be beneficial in creating affordable, sustainable and dependable polices and regulations that encourage new and existing entrants to invest in the Manitoba beef industry. I would be remiss not to mention the predation file. The livestock industry needs a timely solution to this very serious challenge. MBP cochairs a Livestock Predation Protection Working Group which has reps from the government and the livestock sector tasked with addressing this longstanding issue. Many years of lobbying by MBP for a workable strategy may finally result in a predation management pilot project in 2020. I look forward with anticipation that the hard work, patience and resolve will finally bring hope to those producers who have been negatively impacted. None of us will forget the challenges successive droughts have caused. I am still confused as to why the Manitoba government did not declare an agricultural disaster for 2018 or, more importantly, 2019. Parts of Manitoba recorded either the driest or the second driest year on record, yet the Manitoba government did not seek an AgriRecovery initiative. Feed prices were outrageous and in many cases unaffordable, or distances made hauling feed economically unfeasible. This resulted in significant culling and some producers were forced to exit altogether. Manitoba’s beef herd will most surely contract for the second consecutive year. At the national level, the federal government is enacting new livestock transportation requirements in February 2020 that will require livestock transporters to unload cattle for a rest period after 36 hours. Even though cattle have been transported safely and humanely for decades with tremendous success rates (shown by the government’s own research), these changes were announced. Late in 2019, the federal Agriculture Minister announced the enforcement of the new regulations will be delayed for two years. This is important as this will allow for the completion of added research on beef cattle transportation, as well as work to address the need for more rest stops due to the shorter transit period. On the trade front, China closed its borders to some Canadian commodities, including beef. Canada had a significant increase in beef exports to China in 2018, and 2019 was looking promising until the situation arose. In November news came that meat export certificates will resume. Canada is hopeful beef exports will rise to the volumes prior to the trade disruption. Canada boasted increased beef exports to Japan due to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Tariffs exports prior to the CPTPP trade agreement were at 38.5% and are coming down over time, making Canada more competitive in this key market. Japan also lifted its over 30-month (OTM) age restriction for Canadian beef exports.

More highlights from 2019 are found in MBP’s year in review. Now it’s time to refocus for 2020. Some projects will include negotiating more sustainable and predictable use of the Wildlife Management Areas (WMAs) for grazing and haying. Even though the provincial government made some of the WMAs available in 2018 and 2019, this proved not as effective as needed. Not only was access granted too late in the year but it was very costly usage because of the short season. Many are overgrown from years of standing idle, and there are fencing and water challenges. I believe there is a mutual desire between government and our sector to develop sustainable and affordable grazing and/or haying options that will be beneficial for both producers and wildlife habitat. MBP will continue its focus on the Lake Manitoba and Lake St. Martin Outlet Channels Project. The federal and provincial governments have committed more than half a billion dollars to this critical project to provide flood protection for not only beef producers but all other industries and residents around Lake Manitoba. Unfortunately there was little progress on this project in 2019 and MBP is calling on both governments to address issues holding up the work. It will be important for MBP as well as the Canadian Cattlemen’s Association (CCA) to lobby both governments to ensure this project is delivered as soon as possible. Business Risk Management (BRM) options are another area of concern for our industry. The Select Hay Insurance program as well as the Western Livestock Price Insurance Program have proven useful. However, many other BRM tools fall short. The Basic Hay option has not responded adequately for most producers. Pasture BRM tools have proven largely ineffective according to many producers. In light of their ineffectiveness, the uptake has been extremely poor. Thus far there are very limited options for corn silage, as well as damage by blackbirds to standing corn crops. A sound BRM option is needed for polycrops. One of the most frustrating, complex and ineffective BRM tools for the cow/calf sector is AgriStability. Changes made to AgriStability in recent years have discouraged producers from investing in it. MBP has had annual consultations and meetings with government as well as Manitoba Agricultural Services Corporation to help address many of the shortcomings. Affordable, effective, predictable and responsive BRM programming is essential for financial sustainability of all producers and MBP will endeavour to achieve that. Looking ahead, I am excited for MBP because I believe the organization has an extremely capable and confident general manager, Carson Callum, leading the way and an excellent group of seasoned and more recently-hired staff. Maureen Cousins, policy analyst, has served MBP with distinction for more than 10 years and I am hopeful she will continue with MBP for years to come. Deb Walger has provided MBP with nearly 20 years of accounting expertise. David Hultin, communications coordinator, joined MBP in September and has been an excellent addition. Tanya Michalsky is the office assistant and does a great job of directing your calls and questions. It gives me great confidence MBP is poised to have an excellent year knowing that we have directors and staff that do exemplary work for the membership each day. Finally, I would to thank the membership, the MBP directors and staff for the privilege to represent you as the president of Manitoba Beef Producers. To deliver on all of the initiatives, programs and policies that I have identified, MBP needs the help of its members. I have appreciated interacting with you at events like the MBP fall district meetings and the Annual General Meeting. Events like these are not only excellent for networking and gleaning industry knowledge, but your input is invaluable in helping MBP focus its advocacy activities. It has been an honour to serve an industry that has given me so much. I can only hope that I represented MBP and its membership with leadership that exemplifies respect, dignity and humility to the best of my ability. In closing, I would like to once again thank my wife Michelle and my daughters, Madison and Regan. Their sacrifices, love and commitment have allowed me to serve MBP and CCA for six years. Thank you. MA NITO BA BEEF P R O D UC ER S

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