MESSAGE FROM THE PRESIDENT

TOM TEICHROEB, PRESIDENT

This past year has been both busy and rewarding. Significant challenges continued to test our resolve in 2018, however, livestock producers are resilient and continue to be up to the task. Thank you for giving me the opportunity to help you meet some of these challenges and serve you as president of Manitoba Beef Producers (MBP) for the final few months of 2018. It is your commitment and loyalty to MBP that makes us relevant as an organization. It is a privilege and an honour to represent such an amazing organization. With direction and collaboration from the board of directors and staff, we will continue to strive for excellence for beef producers in Manitoba and the entire beef industry.

As most of you are aware, Ben Fox, director of District 13, was MBP’s president until mid-summer when he resigned to pursue a federal political nomination. I would like to recognize Ben for his exemplary dedication, leadership and passion for the beef industry. I would also like to acknowledge and give credit to Ben for the shared responsibility of being MBP president in 2018.

It is equally important to recognize the board of directors for their passion and commitment to MBP. There are an endless number of initiatives with which directors are tasked. Our directors attend monthly board meetings and various committee meetings as well as assume other industry and national commitments, all while continuing to manage their own businesses. For that reason, I believe they deserve to be recognized. I truly admire and value their dedication to MBP. I would also like to thank the board of directors for their confidence in me as president and spokesperson for MBP. I sincerely appreciate your support.

MBP staff also deserve recognition and a heartfelt thank you for their efforts, hard work and commitment to the organization. Over the years MBP has grown as an organization and with that growth there are additional demands. Their excellent work for the livestock industry and specifically MBP is very much appreciated.

In 2018, the restructuring of agricultural Crown lands (ACL) has been one of the key initiatives on which MBP has been working. In 2017, the Manitoba government made regulatory changes and enacted a new Agricultural Crown Lands Leases and Permits Regulation. These changes were in large part initiated by the signing of the New West Partnership Trade Agreement. The province defended these regulatory changes by stating that the existing ACL policies were outdated and that they also posed potential countervailing issues. One of the key changes will be the manner in which ACL are leased. Rather than lease fees being based on a calculated formula, ACL parcels which become available will be leased under a tender process involving an auction. In light of this major change there is a great deal of work to be done on ACL policies and regulations which will help shape the new process. MBP is hopeful that the province will continue to consult with producers and the industry on all changes regarding ACL leases and how those changes will impact the viability and growth of the beef industry. An inclusive consultation process will prove to be beneficial in creating affordable, sustainable and dependable policies and regulations that encourage new and existing entrants to invest in and grow Manitoba’s beef herd.

Another welcome and exciting development in 2018 was the joint federalprovincial commitment of funding for the construction of an outlet channel from Lake Manitoba to Lake St. Martin. Together, the two levels of government announced a $540 million project that will provide flood protection not only for beef producers but other industries and residents around Lake Manitoba. The devastation and duration of the 2011 Lake Manitoba flood crippled livestock producers in the flooded regions and many never recovered. In 2014 Lake Manitoba residents once again experienced significant flooding. Thanks to the continued lobbying efforts of MBP, the Canadian Cattlemen's Association (CCA), local governments, and other affected sectors and stakeholders, the Lake Manitoba and Lake St. Martin outlet channels will now become a reality. Beef producers bordering Lake Manitoba as well as the surrounding regions can be reassured that they will eventually have permanent and reliable flood protection to safeguard them from catastrophic flood events.

Unfortunately, every year brings its own unique set of challenges. Manitoba, like other provinces, experienced significant to severe drought conditions in 2018. Locally the Interlake region experienced some of the worst drought

MESSAGE FROM

THE PRESIDENT

conditions. Feed stuffs proved to be expensive and very difficult to source. Some producers paid as high as $0.10/pd for average first cut forages. Water also became a scarce resource for some. Dugouts, marshes and sloughs dried up in many areas and some producers were forced to drill wells and dig new dugouts. Unfortunately, some producers were forced or chose to liquidate some or all of their livestock. MBP sought initiatives to help affected producers.

The Manitoba government responded by providing producers access to Crown land leases and Wildlife Management Areas (WMAs) which are normally restricted areas. Unfortunately, the full benefits of the grazing and haying leases were never fully realized because the announcements came very late in the growing season. Later in the year, the province also made funding available for Beneficial Management Practices to assist producers in developing and renewing livestock watering options. And, the federal government announced the livestock tax deferral provision for producers impacted in identified drought-stricken regions who were forced to sell off breeding stock.

MBP continues to lobby for various Business Risk Management (BRM) tools and other options to help deal with drought conditions and water shortages. MBP's mandate is to help find sustainable, long-term solutions that will encourage growth and stability in the livestock industry. One such option would be timely and frequent access to restricted Crown land leases and WMAs which are currently managed by Sustainable Development. This would make it economically viable for producers to capture the entire growing season. This would be an extremely useful resource when considering droughts like the one we experienced in 2018.

Finding strategies with respect to predation caused by wolves, coyotes and other species has proven to be a challenging issue to advance. In 2018, MBP continued to lobby the provincial government to implement an effective wildlife management strategy to help alleviate predation-related challenges. MBP co-chairs the Livestock Predation Protection Working Group with Sustainable Development. This multi-stakeholder group is seeking ways to tackle this issue. It has long been recognized by MBP, as well as other affected groups that the province needs to develop and implement an effective wildlife management strategy in a timely manner. This is critical for the expansion of Manitoba’s beef herd. MBP will continue to lobby passionately on this issue to ensure that a solution for impacted producers is realized.

Even though the Manitoba livestock industry faced some significant challenges in 2018, I continue to sense a tremendous amount of optimism. There have been a significant number of new entrants into the beef industry in my district, District 8. It is encouraging that most of the new entrants are young producers as well as entrepreneurs. I'm pleased to represent an industry that is so amazingly resilient despite its challenges. I'm extremely proud to say that we produce the best and most nutritious beef in the world. When I reflect over the last 15 plus years, I can't think of another industry that has not only overcome some of the most significant challenges, but has survived and continues to grow in spite of the odds. Once again, it is a tremendous privilege to be a Manitoba beef producer.

In closing, I would like to thank my wife Michelle and my two daughters for their patience, generosity and understanding. With their support I have been able to participate as a director and now president of MBP. They have been very understanding and supportive of my commitments to the CCA as well. Over the course of the last five years I have spent a significant time away from home and without their support this would not be possible. My heart is filled with love and gratitude for all the opportunities they have unselfishly given me.

May you and your families be safe and prosperous for years to come.

Kind regards, Tom Teichroeb