MESSAGE FROM THE GENERAL MANAGER

MESSAGE FROM

THE GENERAL MANAGER

MBP’s annual report is a chance to look back at the past year, to think about the successes and challenges, and also to think about priorities for the upcoming year. The story of 2018 will be a story dominated by the effects of weather, particularly drought. As producers you manage all sorts of risks on your operations and hedge your bets, plan and use your experiences to minimize risk and ensure the best possible outcomes. You are incredibly resilient and resourceful and always seem to find ways to make the best of situations. Weather is the one unpredictable risks that no amount of planning can completely avoid. The drought conditions in 2018 certainly required many difficult decisions and forced producers to consider all sorts of solutions to provide feed for their herds. That said, I continue to be amazed by the resourcefulness and resilience of our producers to make the best of the difficult drought conditions and to manage their affairs professionally and with a passion for their animal care, the environment and their families.

MBP is a grassroots membership-based organization whose job is to represent and advocate for the interests of our beef producers. We rely on our members’ support and on members choosing to support our efforts through their check-off dollars. It is certainly an easy thing to say, but it is also very true that the staff and directors do not take the support for granted and we work hard to ensure we continue to have the support of producers in everything we do. Now that isn’t to say that we expect to make everyone happy all the time. We recognize there may be some producers who will take exception to something MBP did (or didn’t do), but we do hope that we are given the chance to explain our reasoning and that the greater good is being served. Equally, we hope that those producers who choose to give up their membership by requesting a refund of their check-off also give us the chance to understand why they don’t believe we are providing value to their industry.

Key files this past year included our ongoing efforts to develop workable strategies related to predation, as well as resolution to the requirements for herd testing for bovine tuberculosis in the Riding Mountain Eradication Area (RMEA). These files have long been persistent irritants to our producers and progress has been very slow. It hasn’t been for a lack of effort on the part of MBP’s board and staff, but these are complicated files that involve multiple departments, and in the case of bovine TB, multiple levels of government. We did have a significant win on the bovine TB file this past year when the US Department of Agriculture announced that ― through discussions with the Canadian Food Inspection Agency, they were lifting the last of the federal import restrictions on Manitoba cattle. With this announcement, Manitoba cattle are now free to enter the US without TB testing. There may still be individual state-level testing requirements, but this was a huge win for producers in the RMEA who had been testing cattle for over 20 years. MBP has sought Agriculture Canada funding going forward to ensure that we can continue to support producers in the area to make sure the disease never returns to the cattle herd.

MBP also worked on many other important issues and government changes affecting our sector. These ranged from transportation rules (hours of transport, use of electronic log books), to traceability regulations, Canada’s proposed new Food Guide, provincial/municipal planning procedures, drainage regulations and agricultural Crown land allocation changes. All these are important and can directly impact our efforts to grow the sector and make producers profitable. Looking ahead to 2019, these and other issues will continue to make the role of MBP, working as your advocate, very important.

The beef sector’s Verified Beef Production Plus Program (VBP+) continues to evolve. The program, initially developed as the sector’s ability to recognize sound on-farm food safety practices, has added new pillars related to animal care, the environment and biosecurity. VBP+ is the way the beef industry recognizes that our producers are “doing the right things for the right reasons.” It is the way we demonstrate to our consumers and the public that our producers deserve the BRIAN LEMON, GM MBP public’s trust. In late 2017 Cargill launched its pilot to pay premiums back to cow/ calf producers whose cattle went all the way through the supply chain in VBP+ certified operations. In 2018 the Canadian Roundtable for Sustainable (CRSB) launched its retail certification logo. The CRSB has said that VBP+ production meets their protocol requirements for application of the CRSB logo. Companies such as McDonalds jumped on side, recognizing our production methods as a marketing tool to be promoted on their products. All these changes will no doubt force some further changes to the VBP+ program and the way its delivered, as VBP+ changes from a program that producers use to document their onfarm practices to a program that Canadian (and global) retailers use as a way to promote their products.

I believe there is nothing more important to the long-term growth of our sector than our ability to maintain and grow our public trust. I tend to think that our politicians, who make the regulations and rules that impede or promote our sector, are representatives of the public and respond to their concerns. Thus there is a direct linkage between the level of public trust we enjoy and the level of regulation that politicians believe they need to impose on our industry to protect the public’s interests. We need to have the public trust if we hope to reduce the regulatory burden on our industry.

Public trust is gained in many direct and indirect ways. Increasingly the conservation community in Canada is recognizing the value of working with cattle producers. There was a time not long ago where some conservation groups looked to displace agriculture to try to achieve their objectives. Many are now seeing that the best way to achieve their objectives is to work with cattle producers. These same groups are increasingly becoming some of the best advocates for the sustainability of our production practices. These relationships will assist the beef industry with our public trust and pay dividends to our sector. A sign of this is the Prairie Conservation and Endangered Species Conference being held February 19-21 in Winnipeg. The organizers asked MBP to co-chair the conference, highlighting the growing importance of the relationship between cattle producers and conservation. These types of relationships will also hopefully bring benefits to discussions about the predation issue, as well as to the concerns regarding regularized access to important wildlife lands.

Important gains were made in 2018 on trade. Our sector exports approximately 45% of our production, and approximately 75% of that goes to the US. Trade is critical to our industry and efforts to grow the sector. The federal government managed to get agreement on a NAFTA renewal which brought more security to our relationship with our most important trading partner. Canada was also an initial signatory to the Trans-Pacific Partnership (the CPTTP). This brought significant and immediate tariff reductions into key markets such as Japan. These markets will be critical to our sector’s growth in that region. Finally, Canada is putting in place the program compliance at home to access the European market under CETA. Late in 2018, MBP worked with the Manitoba Veterinary Medicine Association to encourage local veterinarians to get accredited to assist producers in getting certified under the EU program to ensure their production is free of growth promotants. This is another high-value market that will offer significant opportunities to Manitoba’s producers.

In closing, 2018 certainly had its share of ups and downs, but through them all the one thing that persists is our producers’ commitment to their animals, their industry and to the future. It seems the harder things sometimes get, the higher our producers rise to meet the challenges. I very much enjoy working on your behalf and trying to advance and grow the sector. On behalf of our staff (Maureen Cousins, Keith Borkowsky, Kate Cummings, Tanya Michalsky and Deb Walger), I can say we all take it very seriously and are privileged every day to work on behalf of Manitoba’s producers. I look forward to working with you and on your behalf in the coming year. Thank you.

2018

MBP YEAR IN REVIEW

EXECUTIVE COMMITTEE

Tom Teichroeb – President (Ben Fox until early-August) Gord Adams - Vice President Kris Kristjanson – 2nd Vice President Peter Penner - Treasurer Dianne Riding - Secretary

ANIMAL HEALTH

Gord Adams – Chair Robert Kerda – Vice-Chair Mike Duguid Jade Delaurier Kris Kristjanson

AGM/NOMINATIONS/ RESOLUTIONS

Dianne Riding – Chair Ramona Blyth – Vice-Chair Jade Delaurier Robert Metner

COMMUNICATIONS

Dianne Riding – Chair Nancy Howatt – Vice-Chair Peter Penner Robert Kerda Larry Gerelus

CROWN LANDS

Robert Metner – Chair Larry Gerelus – Vice-Chair Mike Duguid Dianne Riding Kris Kristjanson

ENVIRONMENT

Jade Delaurier – Chair Gord Adams – Vice-Chair Larry Wegner Mike Duguid

FINANCE

Peter Penner – Chair Tom Teichroeb – Vice-Chair Ramona Blyth Gord Adams Mike Duguid

GOVERNANCE

Kris Kristjanson – Chair Tom Teichroeb – Vice-Chair Robert Metner Nancy Howatt Jade Delaurier

PRODUCTION MANAGEMENT

Tom Teichroeb – Chair Larry Wegner – Vice-Chair Ramona Blyth Robert Kerda Robert Metner

RESEARCH

Larry Wegner – Chair Larry Gerelus – Vice-Chair Peter Penner Nancy Howatt

WHO IS MBP?

Manitoba Beef Producers (MBP) is the exclusive voice of Manitoba’s cattle industry, representing approximately 6,300 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 producerelected 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.

HOW IS MBP’S WORK FUNDED?

MBP’s activities are funded through the collection of check-off dollars. Two check-offs with a combined total value of $5.50/head are 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 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 $2.50/ 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 Canada’s National Beef Strategy, which covers the period 2015-2020. 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 from $1/head to $2.50/head. This change took effect April 1, 2018. For additional information about MBP’s 2017-18 budget, see page 11.

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 2018 the staff included General Manager Brian Lemon; Policy Analyst Maureen Cousins; and, part-time finance person Deb Walger. Communications activities were led by Chad Saxon for the first part of the year and later by Keith Borkowsky. Elisabeth Harms filled the role of Administrative Assistant for the first half of the year, with Tanya Michalsky later taking on that role. Kate Cummings joined MBP as the Beef Specialist in April. 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 – the Manitoba Livestock Cash Advance Program Inc. (MLCA) and Manitoba Beef & Forage Initiatives Inc. (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 organizational function, such as helping to organize the district meetings and annual general meeting or planning MBP’s participation in events and communications activities aimed at promoting the industry.

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:

Assiniboine River Basin Initiative: Gord Adams and Maureen Cousins Association of MB Community Pastures: Brian Lemon Beef Cattle Research Council: Larry Wegner Bovine TB Taskforce Committee: Kris Kristjanson, Larry Gerelus, Brian Lemon, Maureen Cousins Beef Value Chain Roundtable: Brian Lemon, Maureen Cousins Canadian Cattlemen’s Association: Gord Adams, Tom Teichroeb, Ramona Blyth Canada Beef Inc.: Heinz Reimer Canadian Roundtable for Sustainable Beef: Brian Lemon, Maureen Cousins Canadian Cattle Identification Agency/Cattle Implementation Plan (CIP): Larry Gerelus, Maureen Cousins (CIP) Invasive Species Council of Manitoba/Leafy Spurge: Mike Duguid Manitoba Beef & Forage Initiatives Board: Ramona Blyth – President, Larry Wegner Lake Manitoba Flood Rehabilitation Committee: Robert Metner Manitoba Forage & Grassland Association: Mike Duguid Manitoba Livestock Cash Advance: Peter Penner, Larry Gerelus, Larry Wegner, Tom Teichroeb, Robert Kerda National Cattle Feeders Association: Brian Lemon, Ben Fox, Larry Schweitzer Motor Carrier Consultative Committee: Maureen Cousins

2018

MBP YEAR IN REVIEW

STRATEGIC DIRECTION

MBP’s activities focus around three strategic objectives: telling the industry’s story via advocacy and enhanced communications; building the industry with innovation, improved economic competitiveness and profitability; and, serving MBP’s members by developing the organization and its capacity. These strategic objectives dovetail with MBP’s mission to strengthen the viability of Manitoba’s beef sector and to ensure a sustainable future for our province’s beef industry.

TELLING OUR STORY: ADVOCACY ACTIVITIES

2018 IN CONTEXT

The operating environment affecting cattle production – be that driven by natural or economic factors or public policy, helped shape MBP’s activities in 2018. From a production perspective, 2018 proved to be challenging in many parts of the province. As of August 31, 2018 the Canadian Drought Monitor showed much of southern Manitoba to be facing conditions ranging from abnormally dry to the moderate or severe drought stage. Throughout the production year Manitoba Agriculture’s weekly crop reports repeatedly highlighted problems associated with the lack of rainfall, including poor pasture conditions and vastly diminished forage yields in some regions. Water supplies were another key area of concern with some producers forced to haul water for their livestock as their dugouts and wells dried up. Some were also forced to start feeding cattle up to a month early as pastures died off, although rains in September helped to green up the pastures a bit. Facing potential feed shortages or affordability questions related to the available sources of feed, some producers decided to downsize their herds and others chose to permanently liquidate their herds. Others had to seek alternative feed sources to see them through the winter of 2018-19. Cattle numbers continued to fluctuate. According to Statistics Canada’s Livestock Estimates, as of January 1, 2018 Manitoba had 1,060,000 head of cattle, up 1 per cent from January 1, 2017. As of July 1, 2018 there were 1,120,000 head of cattle in Manitoba, down from 1,135,000 head on July 1, 2017 – a 1.32% decrease. The number of farms reporting cattle and calves in Manitoba as of July 1, 2018 was 6,290, with the average number of cattle and calves per farm being 178 head. By way of historical comparison, on July 1, 2003 there were 11,010 farms in the province reporting cattle and calves, with an average of 144 head of cattle and calves. Within this context, helping to ensure there is a climate in which the province’s beef industry can grow and thrive remained a MBP priority. Throughout the year there were extensive interactions with both provincial and federal elected officials and public servants on an array of issues and opportunities facing Manitoba’s beef industry. The following are some of the highlights of MBP’s advocacy work in 2018.

GROWING THE HERD

MBP believes there are tremendous opportunities to build the province’s beef herd if there is a regulatory, policy, economic and infrastructure environment that provides stability and promotes confidence in the cattle sector. MBP continued its discussions with the Manitoba government about its stated goal to grow the beef cattle herd to pre-BSE levels. In speaking with producers and value chain members several common themes emerged in terms of the types of conditions required to see the herd expand. These include: sustainable growth needs to be based on market signals; producers will be more inclined to expand in an environment of predictable economics at the farm gate; and, producers and value chain members need a business climate that will lend itself to future investment and growth. MBP provided Manitoba’s Minister of Agriculture with a series of recommendations focusing on four key areas aimed at creating an environment conducive to growth, including: the regulatory environment; economic conditions; infrastructure/capacity to produce; and, public trust. MBP believes both the industry and government will need to commit energy and resources towards addressing the unique challenges the beef industry faces if it is to profit from future opportunities. MBP also raised concerns with both provincial and federal officials about the negative impact of the drought conditions and its effect on herd growth if producers were forced to downsize their herds. The focus of MBP’s concerns were on feed availability and affordability, water supplies, as well as whether the federal Livestock Tax Deferral Provision would be triggered to assist producers looking at downsizing their breeding herds. The Manitoba government announced two initiatives. First, in late August Sustainable Development allowed producers to temporarily cut hay and graze animals on Crown land not normally designated for agricultural use, such as wildlife management areas. MBP believes that being able to graze and hay these lands can be a valuable strategy not only during times of feed shortages, but it could also deliver important conservation benefits if they are utilized by beef producers on an ongoing basis. Going forward, MBP will continue to engage with the province about how to best utilize these lands in the future for grazing and haying, as concerns were raised that they were not utilized to maximum effect due to the short access period and some infrastructure-related challenges. Second, in mid-September the province announced 50:50 cost-shared beneficial management practices funding through the Ag Action Manitoba Program to assist with the development of wells and dugouts. This initiative was well received by producers and MBP sees merit in its continuation. While some producers wanted feed or freight assistance, the province chose not to go in that direction. As well, the federal government identified 80 designated regions in Manitoba where producers could access the Livestock Tax Deferral Provision. MBP believes this tool could be beneficial to some producers who had to sell off at least 15 per cent of their breeding herd due to feed and water supply concerns.

CROWN LANDS

Throughout 2018 MBP was involved in extensive discussions with the Manitoba government related to agricultural Crown lands (ACL). Beef producers make extensive use of provincial agricultural Crown lands for both pasture and forage purposes. Ensuring these lands remain available to beef production is essential for future growth in the sector. In late December 2017 the province had released its new Agricultural Crown Lands Leases and Permits Regulation. This provided for an amalgamation of the two separate regulations related to forage leases, hay and grazing permits, and cropping leases, with several changes. The province had also announced 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. In February 2018 the Manitoba government announced public consultations on ACL as part of its stated goals of modernizing the policies and improving fairness and transparency in the system. The consultations build on changes the government announced in 2017 whereby agricultural Crown lands for grazing and haying will be made available through a tendering system. MBP’s comments focused on areas such as the merits of an auction system versus a closed tendering system for forage leases, the need for informed access to ACL, eligibility policies, forage lease terms and renewals, transfers, casual permits, and how to deal with improvements producers are making to leased Crown lands. Bill 35 – The Agricultural Crown Lands Amendment Act (Improved Management of Community Pastures and Agricultural Crown Lands) was introduced October 4 by Agriculture Minister Ralph Eichler. Bill 35 made changes to the Act to allow for fees or rent for leases and permits for ACL to be calculated in one of four ways: setting out or prescribing the amount of method/formula to determine rent in regulation; having a public tender; having a public auction, or, a combination of the aforementioned methods. This legislation also allows regulations to be made around reserve bids and other terms and conditions that may apply in a public tender or public auction. MBP made a presentation on this bill at the Legislature. MBP indicated that it supports the auction approach in principle. The previous points-based allocation system was often frustrating for producers, creating confusion and leading to appeals. MBP has stated there should be no minimum prices for ACL as this could interfere with the market forces and artificially raise the price to producers. MBP will continue to engage with the province about how the auction process will work, as well as on other ACL matters, such as unit transfers, the rental formula for forage leases and permits, and, informed access by people wishing to enter ACL used by cattle producers. MBP’s goal is to see the most effective utilization of ACL to benefit the province’s beef industry. In its discussions with the province about ACL, MBP has repeatedly stated the importance of Crown lands being distributed in the most predictable and transparent manner possible and that their use be both effective and efficient for the sector. 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 interpretations and implementation by provincial officials going beyond the regulatory requirements, such as the relation between animal unit months and the ability to lease lands. There have also been concerns about the lack of monitoring and enforcement. Another element of Bill 35 pertains to Manitoba’s community pastures, allowing the province to designate certain lands as community pastures and to regulate their use. MBP sees considerable value in this approach as access

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to community pastures is very important to the beef industry’s success. MBP also stated it sees merit in the Association of Manitoba Community Pastures (AMCP) continuing to managing these pastures. In 2019 MBP will continue to engage with the province about the regulatory framework that will accompany the changes being made to the Crown Lands Act, as well as other topics such as unit transfers, ownership requirements, improvements to agricultural Crown lands, and lease and permit lengths. MBP also looks forward to participating as the government undertakes a fulsome review of the Act in the coming year.

LIVESTOCK INSPECTION

At MBP’s 39th Annual General Meeting in February 2018 a resolution was narrowly passed by the membership to recommend that Manitoba Beef Producers lobby the provincial government to implement mandatory livestock inspection in Manitoba. The resolution was subsequently discussed several times by MBP’s board of directors and a motion was passed that MBP would engage with the Manitoba government about the structure required to implement a livestock inspection program that is viable, which does not impede commerce and which contributes to a functional traceability system. Discussions continue with the provincial government in this regard.

WILDLIFE MANAGEMENT

Negative interactions with wildlife continue to pose a very serious threat to Manitoba’s beef industry. Associated challenges include: injuries to and harassment of cattle by predators and birds; the potential for disease spread between wildlife and cattle; damage to crops, forages and stored feed; and, flooding and infrastructure damage caused by beavers. MBP had discussions with Manitoba Agricultural Services Corporation (MASC) about the need for compensation for damages caused by species such as ravens and magpies. MBP also requested that consideration be given to providing coverage for wildlife damage in the winter months for feed used for bale grazing or swath grazing. MBP recognizes that producers are frustrated by the slow rate of advancement on the predation file. MBP has repeatedly advised government officials that herd growth is being limited by predation and that swift and meaningful action is needed. MBP continues to co-chair the Livestock Predation Protection Working Group. It includes representatives from Sustainable Development, Manitoba Agriculture, MASC, Agriculture and Agri-Food Canada, Manitoba Trappers Association and the Manitoba Sheep Association. The group submitted a report to provincial and federal ministers and officials with recommendations related to on-farm responses, building local capacity, improving support frameworks, and enhancing knowledge related to predation management. In October MBP received funding through the Ag Action Manitoba Program toward the design and development of a pilot project to address wildlife/livestock conflicts in Manitoba. MBP provided comments on Bill 29 − The Wildlife Amendment Act (Safe Hunting and Shared Management). This legislation includes a general prohibition on night hunting, except in specified situations with respect to aboriginal hunters. In recent years several resolutions have been carried at MBP Annual General Meetings related to safe hunting practices as well as hunting at night. Past instances of dangerous hunting at night have placed people and livestock at risk, and damaged property. MBP has asked the province to engage all land users as regulations under these new legislative provisions are envisioned. MBP has sought clarification about when it will be legal to discharge a firearm at night, as from time to time it is necessary to humanely dispatch cattle due to illness, injury or a devastating predator attack. In its written comments on Bill 29 MBP also discussed the concept of informed access with respect to privately-owned and agricultural Crown lands. MBP believes that public access must be limited to those circumstances where the public has prior authorization from the lessee or permit holder to access the agricultural Crown lands. MBP believes that these rights need to be strengthened to protect livestock, producers and the public alike. Unauthorized access can lead to significant biosecurity issues, can endanger livestock and producers, can endanger the public, and can lead to litigious liability concerns.

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. Finding ways to make cattle farming more economically predictable is seen as the single biggest hurdle to future growth. MBP has repeatedly advised MASC and Manitoba Agriculture that risk management tools available to the cattle sector have not necessarily kept pace with changes in production practices over the past few decades. A principle of risk management programming is to not distort the market, yet the imbalance of bankable risk management tools available to the cattle industry vis-à-vis the cropping sector has done exactly that, and has driven more and more producers out of the cattle sector into the cropping sector. Evidence of this distortion is the loss of acres to annual crop production. The cattle sector needs improved insurance programming. This relates to both insurance of cattle production, but also insurance tools that properly value producers’ feed production and pastures. MBP believes WLPIP needs to be enhanced to provide a risk mitigation strategy that producers see as equivalent to the type of coverage available to the annual cropping sector. Having this kind of equivalency will also assist with attracting new or returning entrants to help grow the Manitoba herd. With respect to the feeding industry, price fluctuations are challenging, and margins are very tight making the feeding sector very risky. Tools such as WLPIP certainly assist, but additional BRM options warrant consideration. Feeding strategies and grazing strategies have evolved significantly over the past several decades. MBP is seeking for BRM policies and programs to be updated to reflect changing production practices that have proven beneficial to the beef industry and which will be critical to its future success. Crop insurance products also need to evolve to recognize innovative new crop mixtures, to value their feed value properly as part of broader feeding strategies and to keep pace with the evolving varieties and practices being used by beef producers. MBP advised MASC that low interest lending programs, management skills training and assistance with succession planning are also valued by producers.

MITIGATING OTHER POTENTIAL RISKS

Effective water management continued to be a key area of focus for MBP in 2018. On June 18, the federal and provincial governments announced $540 million in funding for flood protection initiatives related to Lake Manitoba and Lake St. Martin. Since the devastating floods of 2011 and 2014, MBP has strongly pursued and supported the construction of outlet channels at Lake Manitoba and Lake St. Martin. Construction of these outlet channels will help draw down water levels on Lake Manitoba and allow for better management during future flood events, thereby reducing the risk of flooding around the lake which is an area well utilized for beef production. Affected producers have repeatedly sacrificed their valuable production land to protect their fellow Manitobans, especially in large urban centres like Winnipeg from catastrophic flooding. This has placed a heavy economic toll on the beef industry, forcing some producers to downsize their herds and others to outright exit the industry. Building the Lake Manitoba outlet channel will affect some beef producers’ operations, with the outright loss of productive land to the channel bed or the carving up of their sites to accommodate its route. MBP has asked governments to follow sound land valuation practices when expropriating land to ensure producers are fairly compensated for the loss of land, and also to recognize the production inefficiencies added to their operations due to the presence of the channel. A firm deadline for project completion has not yet been established. Environmental assessment processes are currently underway. The outlet channels will become a key component of Manitoba’s larger flood protection systems.

MBP participated in a provincial Drainage Regulation Stakeholder Committee set up by Sustainable Development. Changes are being proposed to the drainage licensing process that would make it easier to register low risk minor drainage works (instead of licensing them). Larger works, such as major drainage or retention projects would still be licensed. The provincial government’s aim is to better coordinate water resource management and drainage with a goal of no net loss of wetland benefits. During the initial consultations on these changes MBP requested that approval from downstream landowners be required before a drainage or water control work project proceeds and the province was receptive to this request. MBP will continue to provide input on this in 2019.

CARBON POLICIES

There were several developments around provincial and federal carbon policies. MBP’s position is that on-farm agricultural emissions should be exempt from carbon taxes. MBP was pleased when the province announced an exemption from the carbon tax for fuel used on farms, as well as agricultural emissions. Manitoba’s $25/tonne carbon pricing was to take effect in 2018. However, in early October Premier Brian Pallister announce the province would not proceed with its carbon tax. Shortly thereafter the federal government announced it is imposing a price on carbon pollution (a fuel charge) in Manitoba and three other provinces effective April 2019. MBP is concerned this tax will negatively affect beef operations due to higher costs related to transporting cattle, inputs and many other products

2018

MBP YEAR IN REVIEW

and services needed on a daily basis. While there are exemptions proposed for on-farm use of fuels for tractors, trucks and other farm machinery, beef producers will still be affected by these types of pass-through costs. It is MBP’s position that consideration should be given under carbon policies to recognizing the varied ecosystem services cattle producers provide. A 2018 study by the International Institute for Sustainable Development found that pastures and grasslands utilized by cattle producers can sequester as much as eight tonnes of carbon per hectare per year. MBP has requested investments in research to further reduce greenhouse gas emissions such as improved forage varieties and grazing strategies. Investments in initiatives and tools to enhance producer resilience related to climate change and severe weather events is also very important to the beef industry.

SARPAL

MBP received $750,000 in funding over three years from Environment and Climate Change Canada for a Species at Risk Partnerships on Agricultural Lands (SARPAL) project. Throughout 2017 and 2018 MBP delivered voluntary, incentive-based habitat enhancement actions with beef producers in areas of southwestern Manitoba to protect important habitats for at-risk plant and animal species. Some of the targeted grassland Species at Risk include: Sprague’s Pipit, Ferruginous Hawk, Chestnut-collared Longspur, Loggerhead Shrike, Burrowing Owl and Baird’s Sparrow. Eligible producers could undertake practices to enhance cattle production as well as habitats for specific species at risk. This included fencing that supports improved grazing, watering systems designed to improve cattle distribution, native pasture establishment and other practices. Cattle producers play a vital role in conserving species because their land management and grazing activities can co-exist and help meet the needs of many of those species. The program runs until March 2019.

ANIMAL HEALTH

There was significant progress on the bovine tuberculosis file in 2018. Effective July 1, the United States Department of Agriculture (USDA) requirement that breeding cattle and bison from Manitoba had to be tested pre-export for bovine tuberculosis was lifted. For years, producers in the Riding Mountain Eradication Area (RMEA) around Riding Mountain National Park (RMNP) bore a heavy cost in the yearly mustering and surveillance testing of their animals. This USDA decision recognizes the decades of hard work undertaken by MBP, producers, governments and other stakeholders on the bovine TB issue and is very good news for the cattle sector. This USDA decision is a result of the Canadian Food Inspection Agency’s detailed case outlining why pre-export testing for these Manitoba breeding cattle and bison is no longer required. Bovine TB had been detected in livestock and wildlife around the RMNP area, resulting in the establishment of the RMEA. Herds in Manitoba were subject to surveillance testing, which stressed the animals and placed them at risk for injury. The presence of bovine TB has also required producers to take special biosecurity measures to prevent the spread of the disease from deer and elk. These measures include barrier fencing to protect feed supplies, installation of special gates and the use of livestock guardian dogs. Manitoba’s last case of bovine tuberculosis was in 2008 and the USDA has recognized the province’s TB free status and all federal US restrictions on Manitoba breeding stock moving into the US have been lifted. Individual American states continue to have their own state-level bovine tuberculosis testing requirements. In addition to the producers, MBP has worked with many other stakeholders to address this issue, including: Parks Canada, Manitoba Sustainable Development, Agriculture and Agri-Food Canada, Manitoba Agriculture, First Nations and the Manitoba Wildlife Federation. The Canadian Cattlemen’s Association also provided assistance with advocacy efforts at the federal level. It is a testament to the diligence of the producers in the RMEA, as well as the efforts of the other stakeholders that Manitoba has achieved this long soughtafter result. MBP and other stakeholders remain vigilant as the beef industry cannot afford a recurrence of this disease in cattle. Groups such as the TB Task Force and the Scientific Review Committee remain active. The emphasis is on continuing disease surveillance efforts and then shifting to prevention activities. MBP is pursuing funding through the federal AgriAssurance program for the continuation of the TB Coordinator’s position, as well as ongoing initiatives at the farm and ranch level aimed at limiting livestock/wildlife interactions. No live animal testing was planned by the Canadian Food Inspection Agency (CFIA) for the 2018-19 season in the Riding Mountain Eradication Area (RMEA). This was based on the assumption that wildlife submissions and domestic livestock slaughter data continue to be abundant and results consistently negative. Submission of hunter-killed samples to the provincial government for analysis remains key for achieving the needed level of wildlife surveillance. Elsewhere on the animal health front, MBP asked the federal government to review and revise the recommended tolerance levels of ergot allowed within the Feeds Act’s “RG-8 Regulatory Guidance: Contaminants in Feed”, published by the Canadian Food Inspection Agency (CFIA). The persistence of ergot provides a unique set of challenges for producers. The repercussions of the prolonged ingestion of ergot alkaloids are detrimental to both livestock health and to a producer’s bottom line. MBP noted that the maximum tolerance levels provided in RG-8 Regulatory Guidance is outdated and does not reflect current research findings. Research has shown that ergot fed at concentration levels lower than the maximum causes irreversible damage. MBP argued the standard needs to be amended to protect industry productivity and the health and welfare of livestock. Further, MBP restated its concern that the absence of accurate labelling disclosing the level of ergot contamination presents unforeseen risks and challenges to producers. Labeling feed with toxin levels provides valuable information to producers regarding contaminant levels in feed deliveries would allow producers the opportunity to adjust feeding programs and make informed decisions. More cases of bovine anaplasmosis were discovered in southeastern Manitoba. 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. There were three reported cases of anaplasmosis in Manitoba cattle in 2017. Starting in December, cattle producers were required to have a veterinary prescription for some products they used to be able to purchase without one, specifically those containing a medically important antibiotic. MBP raised awareness of this federal policy change through articles in Cattle Country, as well as through presentations at the fall district meetings led by two former provincial government veterinarians who are also active beef producers.

POLICES RELATED TO DEVELOPMENT OF LIVESTOCK OPERATIONS

In early 2018 MBP provided feedback to the province as it revisited the Livestock Review Process, with the aim of shaving 100 or more days off the average existing length of more than 300 days. MBP welcomed improvements to the streamlining of the process. Delays in getting conditional use permits have been a concern. The beef sector often grows through the sale and acquisition of existing operations by new or expanding operators. A 200 plus day review process is still not conducive to allowing the timely sale/transfer of real estate conditional upon the property’s intended use being approved. Further, construction seasons are short and if projects can be approved within a shorter timeframe there will be both production and economic benefits derived by the producer. The province passed Bill 19 – The Planning Amendment Act (Improved Efficiency in Planning). It will allow a person whose application for a livestock operation is rejected by a municipal council to appeal to the Municipal Board. MBP supports this approach. Bill 19 allows municipalities to set their own animal unit threshold for a local conditional use approval and hearing. While MBP sees merit in this approach, it cautioned this has the potential to create confusion on the landscape. Having the 300 animal unit threshold as had been set out in The Planning Act helped clearly identify when the conditional use process was triggered in all Manitoba municipalities. The new approach may result in a wide variation in thresholds. MBP noted a potential new entrant seeking to establish a beef operation may have to invest considerable time investigating where a given municipality sits with respect to the conditional use threshold. As well, given the four-year municipal election cycle and potential changeovers in the composition of councils, thresholds could change on a regular basis, potentially adding to producer uncertainty.

FEDERAL MATTERS

In May, with the assistance of the Canadian Cattlemen’s Association (CCA), MBP conducted its annual fly-in to Ottawa. MBP representatives met with Members of Parliament and Senators, as well as a number of departmental officials to discuss topics of national scope. These included changes to animal transportation rules, movement reporting, the need for business risk management programs that place the beef industry on a level playing field alongside other agricultural commodities, front of package labeling, changes to Canada’s Food Guide, and changes to The Fisheries Act. The importance of trade to Manitoba’s beef industry was also raised, such as realizing the benefits associated with the Canada-European Union (EU)

WWW.MBBEEF.CA

Manitoba Beef Producers took part in a Taste of Trade event in downtown Winnipeg in November to promote the beef sector.

Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The presence of a federally-registered harvest facility in Manitoba means the industry is poised to take advantage of marketing beef directly from Manitoba. During the Ottawa visit, MBP also raised issues of local importance to Manitoba’s cattle producers, such as growing the herd, bovine tuberculosis, funding for flood-related infrastructure, and the importance having access to an array of veterinary products in Canada to help deal with issues such as liver flukes. Another issue raised was proposed federal changes to regulations related to the transportation of animals, including the number of hours in transit. Cattle producers and transporters are committed to ensuring the health of the animals in their care. Agriculture and Agri-Food Canada’s own research has found that 99.5 of cattle on long hauls more than four hours and 99.98% of cattle on short hauls of less than four hours arrive at their destination in good condition. Manitoba cattle are being shipped to destinations in both western and eastern Canada. MBP expressed concerns that by reducing the hours in transit it means that cattle will have to be unloaded more frequently for rest, feed and water, potentially increasing the risk of injury and illness during the loading/unloading process. MBP also stated more research is required before regulatory changes are contemplated. Outcome-based guidelines are required that are founded in science and which take into account Canada’s climate, geography and transportation system. Based on a resolution arising from MBP’s 39th Annual General Meeting, MBP worked with the Beef Farmers of Ontario (BFO) to advance the in-transit issue with federal officials. MBP and BFO have been seeking to regain in-transit access for cattle transported through the United Stated en route from western Canada to eastern markets, as well as for cattle moving from northwestern Ontario to markets in Manitoba. Pre-9/11 cattle producers were able to move animals across Canada using certain U.S. routes in-transit. Livestock that moved in-transit were considered to be domestic Canadian goods and could therefore enter the United States with minimal documentation provided the truck was sealed by a border official. Post 9/11 in-transit shipments were treated as international loads subject to full documentation. While MBP and BFO are motivated to see in-transit access restored at Rainy River-Baudette, there is a broader need to conduct a more fulsome evaluation of other access point barriers preventing more efficient transportation of cattle and other livestock species in Canada and the US. Allowing cattle to be moved in-transit through the US saves time and money, and provides for improved outcomes for the cattle being transported with virtually no risk to either the Canadian or US industries. It also allows for contingency planning in the event of the loss of a major transportation route, such as the January 2016 closure of the bridge in Nipigon, Ontario which completely halted east-west commerce for almost two months.

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. MBP strongly supports research. Twenty three cents of every national check-off (NCO) dollar collected in Manitoba goes towards conducting and promoting research activities re: beef cattle, beef and beef products. See the Beef Cattle Research Council at http://www.beefresearch. ca/ for additional details. A further 6.5 cents of every NCO dollar collected in Manitoba is retained for Manitoba projects that reflect MBP’s research priorities and which align to national priorities. For example, MBP investments have gone towards projects such as: forage evaluation, fetal programming, the Canadian Roundtable for Sustainable Beef’s Verification Framework Project, strategic supplementation to improve beef cattle performance in grazing systems, and perennial grains research, among others. 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 (MB Ag), Manitoba Forage & Grassland Association (MFGA) and Ducks Unlimited Canada (DUC). 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. There were some exciting developments related to MBFI in 2018. Dr. MaryJane Orr was hired as MBFI’s General Manager in the fall and she will oversee all aspects of the three MBFI research and demonstration sites. She has strong interests in the intersection of agricultural industry and environmental stewardship. In August MBFI’s new Learning Centre officially opened and it will be a valuable addition when it comes to knowledge transfer activities. It includes a 2,200-square-foot classroom, internet access and audiovisual equipment for distance learning, and a food preparation area. Offices and an

MBFI President Ramona Blyth speaks at the opening of MBFI’s Learning Centre.

interpretive gallery are to be added at a later date. A variety of applied and academic research took place at the Brookdale, Johnson and First Street sites related to summer grazing management, forage and pasture rejuvenation, ecology and the environment, soil health, extended grazing options and feeding strategies. Knowledge transfer events were held on topics such as: immunology, vaccines, and vaccination protocols; long acting parasiticides; grazing systems; farmyard security and livestock monitoring; and, winter watering systems. 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 strategic leadership. MBFI’s president is Ramona Blyth, and she also sits on MBP’s board of directors. A Communications Committee helps to raise public awareness of the research and extension work being undertaken. 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 initially received significant funding through Growing Forward 2. Funding through the new Canadian Agricultural Partnership was announced by Agriculture Minister Ralph Eichler in August. MBP thanks the core partners and all our other generous partners (including corporations, companies and academic institutions) for the significant roles they are playing in envisioning this important initiative, doing the legwork to take it from conception to inception

2018

MBP YEAR IN REVIEW

Manitoba Beef Producers were a part of the agricultural exhibits at the Red River Exhibition in 2018.

and for their ongoing commitment to its success. Visit www.mbfi.ca to learn more.

TELLING OUR STORY: COMMUNICATIONS

In 2017, MBP’s communications efforts focused on improving the use of technology. In 2018, MBP committed to building its content library to complement the technology. Early in 2018, MBP contacted Tripwire Media to produce a series of videos to help share the stories of producers on topics of concern to the general public. Animal care, public trust in the beef industry and the environment are among the topics to be covered. It is anticipated at least one of these videos will be shot in a format compatible with virtual reality, so as to increase MBP’s capacity in this area. Filming will commence in 2019. It is expected this phase of the project will be completed in 2019. This work is part of an overarching strategy to modernize MBP’s presence at public events such as fairs and trade shows and to make the public’s experience more interactive. As part of the updates, capital equipment such as touchscreen TVs and the aforementioned videos will be purchased. MBP is also investigating the purchase of new VR headsets. In 2018, MBP used an IPad at events to showcase the Canada Beef mobile app. Ensuring that the communications activities and advertisements MBP undertakes to promote the industry and the association are effective is very important. In the past there was little to no information available to determine the effectiveness of MBP’s communications and promotions activities. To address this gap, in late 2018 MBP secured a market research study using eNRG Research Group. This is intended to be part of ongoing efforts to gauge the awareness and effectiveness of MBP’s outreach efforts. This is a first for MBP and the first study was completed in January 2019. The value of this investment will be revealed in other ways. Over time, MBP will gain important information about trends, which will be used to help direct producers’ checkoff dollars to communications efforts that generate the best possible impact. It was identified there was little advertising conducted in the Westman area to raise awareness of MBP to a non-producer audience. For the 2018-19 season, MBP partnered with the Brandon Wheat Kings for jumbotron advertising space during its WHL game intermissions. A video was shot in Brandon featuring Halli Krzyzaniak , a Canadian women’s national hockey team player whose Manitoba family are beef producers. As part of this strategy, MBP also partnered with Q-Country radio, the broadcaster of Brandon Wheat Kings games, to purchase advertising associated with its coverage of the team. MBP continued its Eat like an Athlete promotions on TSN 1290 and during Winnipeg Blue Bombers halftime shows on that station. This also included advertising on Winnipeg Jets programming on that station. The advertisements featured some recipes and messaging on fueling our bodies in a healthy manner through promoting the use of beef. MBP’s relationship with the Winnipeg Blue Bombers continued, which involved sponsoring the Family of the Game. MBP also took part in the pre-game tailgate festivities during the Hamilton Tiger Cats game in early August. This year, MBP added the Winnipeg Goldeyes to the Eat like an Athlete stable of advertising, as well as its broadcaster CJNU in Winnipeg. This allowed MBP to be part of a pre-game fan festival for a home game in late August, including the ability to hand out promotional items during the game and to receive in-game advertising mentions. As well, 100 game tickets which were handed out to youth. MBP’s successful involvement in the Great Tastes of Manitoba (GTOM) cooking show on CTV Winnipeg continued in 2018 with two episodes. GTOM is Manitoba’s highest-rated food show, of any food or cooking show broadcast into Manitoba. The audience has a higher percentage of female viewers. While the sports-related advertising has hit audiences that reach more men, GTOM is also a very important component of the MBP communications strategy. Access Great Tastes of Manitoba episodes at http://greattastesmb.ca/episodes/ . For the 30th Great Tastes of Manitoba season, MBP will have an extra episode, increasing its total to three for the season. MBP participated in several other familiar activities in 2018, including Ag in the City and the Red River Exhibition, both in Winnipeg, as well as Ag Days and the Royal Manitoba Winter Fair in Brandon. MBP was also involved in the Amazing Agriculture Adventure and other successful activities at the Bruce D. Campbell Farm and Food Discovery Centre at the University of Manitoba. There are ongoing discussions about improving MBP’s presence and display at that facility. 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 Keith Borkowsky at kborkowsky@mbbeef.ca. Follow MBP through social media channels such as Facebook and Twitter. MBP’s number of followers continues to grow. As part of the communications outreach in 2018, MBP representatives were featured in an estimated 200 interviews/stories with media outlets, and MBP released 31 public statements on its website in its news section. Topics covered ranged from the drought, to production practices, trade, agricultural Crown lands, the environment, public trust and many more.

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 2019, from Crown lands, to predation, to water management, growing the herd and more. New issues and opportunities may also emerge and MBP’s board of directors and staff will be there to tackle 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 info@mbbeef.ca .