LEADING
THROUGH UNCERTAINTY ANNUAL REPORT 2021 BFO ANNUAL REPORT 2021
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WHO WE ARE Beef Farmers of Ontario (BFO) represents over 19,000 beef farmers in Ontario and is the leading organization in Ontario working with all beef farmers to develop and support landmark achievements that move Ontario’s beef industry forward sustainably and profitably. BFO is involved in a wide range of issues and initiatives that are important to all stakeholders within Ontario’s beef industry which include industry sustainability, trade, animal health and care, environment and food safety.
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BFO ANNUAL REPORT 2021
TABLE OF CONTENTS Message from the President............................................................................................................................... 4 Message du Président.......................................................................................................................................... 6 BFO Past Presidents ............................................................................................................................................ 8 2020 Board of Directors .................................................................................................................................... 9 Message from the Executive Director.............................................................................................................10 BFO’s Statement on Diversity, Equity & Inclusion.........................................................................................12 BFO Staff.................................................................................................................................................................14
BFO Reports Government Relations.........................................................................................................................................16 Research & Innovation.........................................................................................................................................18 Communications & Producer Engagement.................................................................................................. 20 Consumer Engagement.....................................................................................................................................22 Ontario Beef Market Development Program................................................................................................26 Committee Reports..............................................................................................................................................32 Ontario Beef Breeder Cooperative Program................................................................................................34 Ontario Feeder Cattle Loan Guarantee Program........................................................................................36 Market Statistics...................................................................................................................................................37
Industry In Review Beef Cattle Research Council.......................................................................................................................... 50 Canada Beef .........................................................................................................................................................52 Canadian Beef Check-off Agency...................................................................................................................54 Canadian Cattlemen’s Association..................................................................................................................56 Canadian Cattle Identification Agency...........................................................................................................58 Farm & Food Care Ontario............................................................................................................................... 60 Livestock Research Innovation Corporation.................................................................................................62 Ontario Cattle Feeders’ Association...............................................................................................................64 Ontario Beef Cattle Financial Protection Fund.............................................................................................66
BFO Financial Reports Audited Financial Statements...........................................................................................................................67 2021 Preliminary Budget.....................................................................................................................................81
BFO ANNUAL REPORT 2021
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A MESSAGE FROM THE PRESIDENT
Rob Lipsett BFO PRESIDENT
I was elected President of the Beef Farmers of Ontario in February last year. As I reflect back on the year that was, I recognize that my role as president was not to steer the ship in a new direction from that of my predecessors, nor to park it in a safe harbour. I saw my role as one to ensure Ontario’s beef industry remained viable and sustainable, and that was a challenge I embraced and looked forward to. However, the global pandemic added a new dimension to my role: leading through uncertainty. The impact of the global pandemic was
raised the alarm regarding the economic
programming and a cattle “set-aside
far reaching in 2020 and presented many
crisis facing our industry and brought
program” to help spread out cattle sales,
disruptions and challenges for so many
an urgent request to Ottawa for federal
which would serve as temporary measures
sectors, from tourism and hospitality to
assistance. A perfect storm of market
to help restore some of the competitive
education and manufacturing. Canada’s
and trade disruptions caused average
balance in the marketplace until more
beef industry and the agri-food sector
weekly losses of $2 million over the past
permanent, long-term solutions can be
weren’t spared from impact. For Ontario’s
year in the Ontario beef industry, putting
implemented. In June, BFO welcomed an
beef farmers, trouble began in the fall of
Ontario’s beef farms at a tipping point.
announcement by federal and provincial
2019 with the closure of Ryding-Regency
Cattle processing capacity and bottlenecks
ministers of the creation of a cattle set-
and the resulting loss of federal processing
in the value chain have been a growing
aside program for Ontario to allocate $5
capacity in the province. The onset of the
problem, with processing plant utilization
million to the beef sector to help manage
COVID-19 pandemic in March compounded
up from 85 per cent in 2016 to 95 per cent
potential backlogs in processing due to the
that pressure for farmers. Fortunately,
in 2018 to over 100 per cent during peak
COVID-19 pandemic. In July, the province
processing facilities in Ontario were not
periods throughout 2019 and into 2020.
shared some good news by announcing
affected by any COVID-19 outbreaks in
As a result, access to processing space
they would contribute an additional $50
the spring, but we finished 2020 with the
was limited, and prices for finished cattle
million across the Risk Management
temporary closure of Cargill Meat Solutions
remained below breakeven prices for the
Program sectors for the 2020 program year,
in Guelph, eastern Canada’s largest federal
vast majority of the year.
fulfilling in part a campaign commitment by
processing facility, as a result of a number of positive cases among their workforce. Other plants were also victim to the spread of COVID-19, which affected production, compounding the problem.
Facing these losses without access to
the Conservative Party.
sufficient government-supported insurance
Coming out of the fall federal-provincial-
backstops typically provided to other
territorial ministers of agriculture meeting
sectors by well-funded business risk
in late November, Canada’s Minister of
management programs, Ontario’s beef
Agriculture and Agri-Food Marie-Claude
Addressing the lack of processing capacity
farmers needed relief. BFO’s request
Bibeau committed to improving AgriStability
in eastern Canada has been one of our
for federal assistance last winter/spring
by removing the reference margin limit
top priorities since the Wynne and Harper
included business risk management
and increasing compensation rates to 80
governments. In March last year, we
funding to address the shortfall in current
per cent from 70 per cent. While we were
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BFO ANNUAL REPORT 2021
disappointed that a firm commitment could not
were able to execute the majority of our
Publicly sharing our commitments through a
be made on all our asks regarding AgriStability,
strategy as planned, and have done so with
statement of values is just the first step in the
we remain hopeful that progress will be made
excellent results.
direction of progress. Diversity, equity and
to ensure producers are soon provided with additional risk management protection.
More than ever, we understand the critical importance of maintaining a steady and
inclusion and how it plays into our activities will be part of conversations and decisions at the board and staff levels moving forward. We
Also in late November, the governments
reliable food supply and protecting the
of Canada and Ontario made a financial
safety of those who feed us. We closed
commitment of $4 million through the
the year with an announcement by the
The BFO Board of Directors and staff are
Canadian Agricultural Partnership for a new
Ontario government of the proclamation of
actively looking at our own organization and
“Meat Processors Capacity Improvement
the Security from Trespass and Protecting
current activities to see where we can do
Initiative”, providing up to $150,000 per
Food Safety Act, 2020. The Act will protect
better and how we can weave education
project for improvements to product handling
Ontario’s food supply chain without infringing
and advocacy around diversity, equity
and processing equipment at Ontario’s meat
on the right to peacefully protest and, in
and inclusion into existing activities and
processors and abattoirs.
conjunction with the Provincial Animal
programing. We are also looking at other
Welfare Services Act (PAWS), 2019, ensure
ideas, initiatives, organizations or activities to
animals are protected and cared for properly.
support or partner on to put our commitment
Ontario’s farm and commodity groups
into action. We will continue to strongly
applaud the efforts of Ontario’s Minister of
support community organizations like Feed
Agriculture, Food and Rural Affairs Ernie
Ontario, AgScape and 4-H that we know
Hardeman and the provincial government
provide important service, support, education
for working diligently with us to support the
and programing to diverse communities all
needs of Ontario’s food producers.
across the province. As we listen and learn,
While we rally to keep our farm businesses and respective sectors sustainable, consumers appear to be taking more interest in farming and recognizing the importance of everyone along the food value chain. On that note, we were pleased to finally see Cargill Guelph certified to deliver the Certified Sustainable Beef Framework under
know we must action our words.
our commitments and actions will continue to
the Canadian Roundtable for Sustainable
We recognize our sector is not always a
Beef (CRSB). The expansion to Cargill’s
diverse industry, particularly at the farmer
Guelph facility triggered the start of financial
and association level. Throughout our supply
credits being applied to qualifying cattle,
chain, however, there is a great amount of
rewarding producers who have fulfilled CRSB
diversity among the people dedicated to
sustainability requirements. BFO was pleased
ensuring our product makes it to the tables
BFO’s annual general meeting is an event
to be involved in the delivery of the Verified
of consumers. Likewise, our consumers are
I look forward to each year because it’s
Beef Production Plus (VBP+) program, a
another incredibly diverse group from all
an opportunity for us to connect with beef
delivery agent for the CRSB program, and to
walks of life who are integral to the success
producers from across the province, industry
support Ontario Cattle Feeders’ Association’s
of our sector. I am proud to say that the BFO
sponsors and stakeholders, and key allies
(OCFA) efforts to seek approval for the
Board of Directors has endorsed the creation
to exchange ideas on how to strengthen
Ontario Corn Fed Beef Quality Assurance
and adoption of a statement of values on
Ontario’s beef industry. BFO staff have done
Program as a certification body under the
diversity, equity and inclusion that can be
a great job planning a virtual event for BFO’s
framework. With OCFA’s certification now
found on the BFO website.
59th AGM on February 17 and 18, 2021. While
complete, a significant volume of Ontario cattle will be positioned to take advantage of the sustainable beef program.
Our statement includes a number of ways in which we are committed to diversity, equity and inclusion, including but not limited to
The focus of our consumer engagement
listening and learning, speaking up against
program in 2020 was getting our content
prejudice and discriminatory language,
in-market, building relationships with
behaviour and actions, better understanding
influencers and partners, and continuing to
how policies and programs related to
build the Ontario Beef brand story with the
agriculture affect Indigenous communities,
public. Fortunately, the vast majority of our
working collaboratively with others
new strategy was designed to be carried
more knowledgeable than us on fighting
out digitally, so when the pandemic hit, we
discrimination, and evolving as we learn.
develop over time as we work to evolve the culture within the beef industry and broader agri-food sector to be more welcoming to and supportive of all members of our communities.
we will miss the face-to-face experience due to the COVID-19 restrictions, this virtual gathering of our industry members provides a forum for reflecting on the hardships of 2020, the achievements of the past year despite the limitations due to COVID-19, and the opportunities that lie ahead in the face of these challenging times. Leading through uncertainty is daunting, difficult and demanding, but as Winston Churchill once said, “difficulties mastered are opportunities won.”
BFO ANNUAL REPORT 2021
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MESSAGE DU PRÉSIDENT Rob Lipsett PRÉSIDENT DE BFO
J’ai été élu président de Beef Farmers of Ontario en février dernier. Tandis que je repense à l’année qui s’est écoulée, je reconnais que mon rôle en tant que président n’était pas de diriger le navire dans une nouvelle direction de celle de mes prédécesseurs, ni de le garer dans un port sûr. J’ai vu mon rôle comme celui de veiller à ce que l’industrie bovine de l’Ontario demeure viable et durable, et c’est un défi que j’ai accepté et que j’attendais avec impatience. Cependant, la pandémie mondiale a ajouté une nouvelle dimension à mon rôle: diriger à travers l’incertitude. L’impact de la pandémie mondiale a été
perturbations du marché et du commerce a causé
mises en œuvre. En juin, le BFO s’est réjoui de
considérable en 2020 et a entraîné de
des pertes hebdomadaires moyennes de 2 millions
l’annonce des ministres fédéral et provinciaux
nombreuses perturbations et défis pour de
$ au cours de la dernière année dans l’industrie
de la création d’un programme de retrait de
nombreux secteurs, allant du tourisme et
du bœuf de l’Ontario, ce qui a fait en sorte que les
bovins pour l’Ontario afin d’allouer 5 millions de
l’hôtellerie à l’éducation et la fabrication.
fermes bovines de l’Ontario ont atteint un point
dollars au secteur du bœuf pour aider à gérer
L’industrie canadienne du boeuf et le secteur
critique. La capacité de transformation des bovins et
les retards potentiels dans la transformation en
agroalimentaire n’ont pas été épargnés. Pour les
les goulots d’étranglement dans la chaîne de valeur
raison de la pandémie de COVID-19. En juillet,
éleveurs de bovins de l’Ontario, les difficultés ont
constituent un problème croissant, l’utilisation des
la province a annoncé de bonnes nouvelles en
commencé à l’automne 2019 avec la fermeture
usines de transformation étant passée de 85 % en
annonçant qu’elle verserait 50 millions $ de plus
de Ryding Regency et la perte de capacité de
2016 à 95 % en 2018 et à plus de 100 % pendant
dans les secteurs du Programme de gestion des
transformation fédérale qui en a résulté dans la
les périodes de pointe en 2019 et en 2020. Par
risques pour l’année de programme 2020, ce qui
province. Le début de la pandémie de COVID-19
conséquent, l’accès à l’espace de transformation
correspond en partie à l’engagement pris pendant
en mars a aggravé cette pression pour les
était limité et les prix des bovins finis sont demeurés
la campagne électorale par le Parti conservateur.
agriculteurs. Heureusement, les installations de
inférieurs au seuil de rentabilité pour la grande
transformation de l’Ontario n’ont été touchées
majorité de l’année.
par aucune éclosion de COVID-19 au printemps, mais nous avons terminé 2020 avec la fermeture temporaire de Cargill Meat Solutions à Guelph, la plus grande installation de transformation fédérale de l’Est du Canada, en raison d’un certain nombre de cas positifs de COVID-19 cas parmi leur effectif. D’autres usines ont aussi été victimes de la propagation de la COVID-19, qui a nui à la production et aggravé le problème.
À l’issue de la réunion des ministres fédéral, provinciaux et territoriaux de l’Agriculture qui
Les éleveurs de bovins de l’Ontario avaient
a eu lieu à la fin de novembre, la ministre de
besoin d’aide pour faire face à ces pertes
l’agriculture et de l’agroalimentaire du Canada,
sans avoir accès à des garanties d’assurance
Marie-Claude Bibeau, s’est engagée à améliorer
suffisantes, financées par le gouvernement et
Agri-stabilité en supprimant la limite de la marge
généralement fournies à d’autres secteurs par des
de référence et en faisant passer les taux
programmes bien financés de gestion des risques de l’entreprise. La demande d’aide fédérale présentée par BFO l’hiver dernier et le printemps dernier comprenait du financement pour la
d’indemnisation de 70 à 80 %. Même si nous avons été déçus de ne pas obtenir un engagement ferme à l’égard de toutes nos demandes concernant Agri-stabilité, nous continuons d’espérer que des
La réduction du manque de capacité de
gestion des risques de l’entreprise afin de combler
transformation dans l’Est du Canada est l’une de
le manque à gagner dans les programmes actuels
nos grandes priorités depuis les gouvernements
et un « programme de retrait de bovins »
Wynne et Harper. En mars dernier, nous avons sonné
pour aider à étaler les ventes de bovins, ce qui
l’alarme au sujet de la crise économique à laquelle
serviraient de mesures temporaires pour aider
À la fin de novembre également, les
notre industrie est confrontée et avons présenté une
à rétablir un certain équilibre concurrentiel sur
gouvernements du Canada et de l’Ontario ont pris
demande urgente à Ottawa pour obtenir de l’aide
le marché jusqu’à ce que des solutions plus
un engagement financier de 4 millions $ dans le
du gouvernement fédéral. Une tempête parfaite de
permanentes et à long terme puissent être
cadre du Partenariat canadien pour l’agriculture
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BFO ANNUAL REPORT 2021
progrès seront réalisés pour veiller à ce que les producteurs bénéficient bientôt d’une protection supplémentaire en matière de gestion des risques.
pour une nouvelle « Initiative d’amélioration de la
l’année avec l’annonce par le gouvernement de
des conversations et des décisions qui se tiendront
capacité des transformateurs de viande », fournissant
l’Ontario de la proclamation de la Loi de 2020
au sein du conseil d’administration et du personnel.
jusqu’à 150 000$ par projet visant à améliorer
sur la protection contre l’entrée sans autorisation
Nous savons que nous devons transformer nos
l’équipement de manutention et de transformation
et sur la protection de la salubrité des aliments.
paroles en actions.
des produits dans les usines de transformation de la
Cette Loi protégera la chaîne d’approvisionnement
viande et les abattoirs de l’Ontario.
alimentaire de l’Ontario sans porter atteinte au droit
Alors que nous nous rassemblons pour assurer la durabilité de nos entreprises agricoles et de nos secteurs respectifs, les consommateurs semblent s’intéresser davantage à l’agriculture et reconnaître l’importance de tous les maillons de la chaîne de valeur alimentaire. Sur ce, nous avons été heureux de voir enfin Cargill Guelph certifié pour offrir le Cadre pour le bœuf durable certifié dans le cadre de la Table ronde canadienne sur le bœuf durable (TRCBD). L’agrandissement de l’installation de Cargill à Guelph a déclenché l’application de crédits financiers aux bovins admissibles, récompensant les producteurs qui ont satisfait aux exigences de durabilité de la TRCBD. La BFO était heureuse de participer à la prestation du programme Verified Beef Production Plus (VBP+), un agent de prestation pour le programme de la TRCBD, et d’appuyer les efforts de l’Ontario Cattle Feeders’ Association (OCFA) pour obtenir l’approbation du Programme ontarien d’assurance de la qualité du bœuf de l’Ontario en tant qu’organisme de certification en vertu du cadre. La certification de l’OCFA étant maintenant terminée, un volume important de bovins de l’Ontario sera en mesure de tirer parti du programme de bœuf durable. En 2020, notre programme de mobilisation des consommateurs a mis l’accent sur la mise en marché de notre contenu, l’établissement de relations avec les influenceurs et les partenaires et la poursuite de la promotion de la marque Ontario Beef auprès du public. Heureusement, la vaste majorité de notre nouvelle stratégie a été conçue pour être mise en œuvre numériquement, de sorte que, lorsque la pandémie a frappé, nous avons été en mesure d’exécuter la majeure partie de notre stratégie comme prévu, et nous l’avons fait avec d’excellents résultats.
de manifester pacifiquement et, de concert avec la Loi de 2019 sur les services provinciaux visant le bien-être des animaux, veillera à ce que les animaux soient protégés et soignés adéquatement. Les groupes de producteurs agricoles et de producteurs spécialisés de l’Ontario applaudissent les efforts du ministre de l’Agriculture, de l’Alimentation et des Affaires rurales de l’Ontario, Ernie Hardeman, et du gouvernement provincial, qui ont travaillé avec diligence pour répondre aux besoins des producteurs alimentaires de l’Ontario. Nous reconnaissons que notre secteur n’est pas toujours diversifié, surtout au niveau des agriculteurs et des associations. Tout au long de notre chaîne d’approvisionnement, cependant, il y a une grande diversité parmi les gens qui s’emploient à faire en sorte que notre produit soit vendu aux consommateurs. De même, nos consommateurs sont un autre groupe incroyablement diversifié de tous les milieux qui font partie intégrante de la réussite de notre secteur. Je suis fier de dire que le conseil d’administration du BFO a approuvé la création et l’adoption d’un énoncé de valeurs sur la diversité, l’équité et l’inclusion qui se trouve sur le site Web du BFO. Notre déclaration comprend un certain nombre de façons dont nous nous engageons à promouvoir la diversité, l’équité et l’inclusion, y compris, mais sans s’y limiter, l’écoute et l’apprentissage, la prise de parole contre les préjugés et le langage, les comportements et les actions discriminatoires, mieux comprendre comment les politiques et les programmes liés à l’agriculture touchent les collectivités autochtones, travailler en collaboration avec d’autres personnes mieux informées que nous pour lutter contre la discrimination et évoluer à mesure que nous apprenons. Le partage public
Plus que jamais, nous comprenons l’importance
de nos engagements au moyen d’un énoncé de
cruciale de maintenir un approvisionnement
valeurs n’est que la première étape dans la direction
alimentaire stable et fiable et de protéger la sécurité
du progrès. La diversité, l’équité et l’inclusion, ainsi
de ceux qui nous nourrissent. Nous avons clôturé
que leur incidence sur nos activités, feront partie
Le conseil d’administration et le personnel du BFO examinent activement notre propre organisation et nos activités actuelles pour voir ce que nous pouvons faire de mieux et comment nous pouvons intégrer l’éducation et la défense de la diversité, de l’équité et de l’inclusion dans les activités et les programmes existants. Nous examinons également d’autres idées, initiatives, organisations ou activités pour appuyer ou établir des partenariats afin de concrétiser notre engagement. Nous continuerons d’appuyer fermement des organismes communautaires comme Feed Ontario, AgScape et les 4-H qui, nous le savons, fournissent des services, du soutien, de l’éducation et des programmes importants à diverses collectivités de la province. À mesure que nous écouterons et apprendrons, nos engagements et nos actions continueront de se développer au fil du temps, alors que nous travaillons à faire évoluer la culture au sein de l’industrie du boeuf et du secteur agroalimentaire dans son ensemble pour être plus accueillants et plus favorables à tous les membres de nos collectivités. L’assemblée générale annuelle de BFO est un événement que j’attends avec impatience chaque année parce que c’est une occasion pour nous de communiquer avec les producteurs de boeuf de toute la province, les commanditaires et les intervenants de l’industrie et les principaux alliés pour échanger des idées sur la façon de renforcer l’industrie bovine de l’Ontario. Le personnel du BFO a fait un excellent travail de planification d’un événement virtuel pour la 59e AGA du BFO les 17 et 18 février 2021. Bien que l’expérience en personne en raison des restrictions liées à la COVID-19 nous manquera, ce rassemblement virtuel de nos membres de l’industrie offre une tribune pour réfléchir aux difficultés de 2020, les réalisations de l’année écoulée en dépit des limites dues à la COVID-19, et les possibilités qui s’offrent à nous en cette période difficile. Diriger à travers l’incertitude est intimidant, difficile et exigeant, mais comme Winston Churchill l’a dit un jour, « les difficultés maîtrisées sont des occasions gagnées ».
BFO ANNUAL REPORT 2021
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BFO PAST PRESIDENTS
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1963
Bruce Mehlenbacher, Haldimand
1988
Robert Gregson, Elgin
1964
Ross Beattie, Simcoe
1989
Jim Magee, Oxford
1965
George Morris, Kent
1990
David Whittington, Peterborough
1966
Harvey Ackert, Bruce
1991
Glenn Coultes, Huron
1967 - 1968
Walter Beath, Ontario County
1992
Doug Gear, Dufferin
1969
Vern Kaufman, Oxford
1993
Robert Kerr, Kent
1970
Lawrence Markusse, Lambton
1994
Ken Summers, Victoria
1971
Hugh Grace, Lanark
1995
Harvey Graham, Durham East
1972
Tom Jackson, Peel-Halton
1996
Dale Pallister, Grey
1973
Stewart Brown, Elgin
1997
Linda Barker, Haldimand
1974
Grant Burroughes, York
1998
Bob Dobson, Renfrew
1975
Clarence Hardy, Middlesex
1999
Darlene Bowen, Temiskaming
1976
Ronald Oswald, Bruce
2000
Stan Eby, Bruce
1977
Archie Etherington, Huron
2001
Dick van der Byl, Glengarry
1978
Alex Connell, Wellington
2002
Mike Buis, Kent
1979 - 1980
Morley Shepherdson, Temiskaming
2003 - 2004
Ron Wooddisse, Wellington
1981
Gus Lask, Ontario County
2005 - 2007
Ian McKillop, Elgin
1982
Tony Noorloos, Lambton
2008 - 2009
Gord Hardy, Middlesex
1983
Robert Chapple, Kent
2010 - 2011
Curtis Royal, Simcoe
1984 - 1985
Gerhard Schickedanz, York
2012 - 2013
Dan Darling, Northumberland
1986
Edgar Wideman, Waterloo
2014 - 2015
Bob Gordanier, Dufferin
1987
Hugh Sharpe, Lennox and Addington
2016 - 2017
Matt Bowman, Temiskaming
2018 - 2019
Joe Hill, Wellington
BFO ANNUAL REPORT 2021
2020 BOARD OF DIRECTORS
ROB LIPSETT President Backgrounder Director Annan, Ont.
JACK CHAFFE Vice President Feedlot Director Mitchell, Ont.
CCA Director
Canadian Beef Checkoff Agency Director
JASON REID Cow-Calf Director Thunder Bay, Ont.
CCA Director
DON HARGRAVE Cow-Calf Director Maxwell, Ont.
DON BADOUR Cow-Calf Director Perth, Ont
JOE DICKENSON Feedlot Director Brigden, Ont.
DAVID MILLSAP Feedlot Director Creemore, Ont.
JASON LEBLOND Northern Director Powassan, Ont.
CRAIG MCLAUGHLIN Eastern Director Foresters Falls, Ont. CCA Director
RON STEVENSON Southern Director Walton, Ont.
DAN DARLING Director At-Large Castleton, Ont.
BCRC Director
CCIA Director
JORDAN MILLER Director At-Large Kagawong, Ont.
BFO ANNUAL REPORT 2021
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MESSAGE FROM THE EXECUTIVE DIRECTOR
Richard Horne EXECUTIVE DIRECTOR
I would like to start by thanking the BFO Board of Directors, Advisory Councillors, committee representatives, staff, and membership at-large for their relentless dedication and commitment to the Ontario beef industry. I am privileged to work for a sector rooted in such deep history and tradition, and that has such pride in the work done each and every day by men and women across this great province who are committed to raising and feeding cattle to the highest standards while producing some of the best beef in the world. Although directors and staff weren’t able to
for discussion and feedback. On this front,
BFO, Ontario Pork and Veal Farmers of
meet with producers and industry partners
large steps were taken this year that I hope
Ontario. This coalition was instrumental in
in the way we have been accustomed to
we can build on in 2021, and we welcome
helping deliver the additional $50 million
and would like over the past year, BFO
new ideas on how we can improve our
in government funding for the Ontario Risk
made a concerted effort to increase our
communication with members.
Management Program.
BFO was forced to double down on our
Similarly, our partnership with the eastern
political presence and lobbying efforts,
cattle coalition, comprised of members
and we returned our focus to more
from Ontario, Quebec and the Maritimes,
collaborative approaches with other
helped drive discussions at the national
organizations to address issues of shared
table with respect to important requests of
concern. I believe this allowed BFO to
government regarding specified risk material
achieve far more than we could have done
(SRM) removal requirements, business risk
on our own.
management enhancements, trade barriers
communications and outreach to local associations, committee representatives, supply chain partners, and the broader BFO membership to ensure important information was communicated in as broad and timely a manner as possible. We launched a COVID-19 webpage that was updated on a weekly, sometimes daily basis. Regular industry update calls were held throughout the year to update local leadership on topics such as government decisions and announcements, BFO advocacy activities, market conditions and marketing efforts, and to serve as a forum
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BFO ANNUAL REPORT 2021
The renewal of the Ontario Agricultural Sustainability Coalition welcomed back the Grain Farmers of Ontario, Ontario
with South Korea, and the trade imbalance with the European Union and the United Kingdom, among others.
Sheep Farmers and the Ontario Fruit and
Our collaboration with the Ontario
Vegetable Growers’ Association, joining
Federation of Agriculture and the other
Ontario livestock organizations in
We also saw positive movement
Recommendations and advice
the development of the Security
towards addressing long-standing
provided by internal and external
from Trespass and Protecting
industry issues this year, which was
stakeholders and members as part
Food Safety Act helped drive that
great to see. Canada’s BSE risk
of this formal review will be assessed
legislation through the Ontario
status is on track to be lowered from
carefully in 2021 to determine what
Legislature. Many of the regulations
controlled to negligible by the World
steps, changes or tweaks need to be
that were eventually adopted came
Organisation for Animal Health this
made to improve the organization’s
from recommendations and advice
May, if all goes according to plan.
effectiveness and representation. We
developed jointly by the various farm
This has been a long time coming.
appreciate the time that participants
groups involved.
Similarly, the Canadian Food Inspection
in this review process took to help us
Agency (CFIA) has finally opened up
gain meaningful feedback and input.
The consensus-building model used by the Canadian Cattlemen’s Association throughout 2020, which included a much more prominent role for provincial organizations and the National Cattle Feeders’ Association, was, I believe, pivotal in the creation and launch of cattle set-aside programs in Alberta, Saskatchewan and Ontario. It also helped form a unified position for the cattle sector on business risk management programs. Lastly, the partnership formed with Meat and Poultry Ontario, the Ontario Cattle Feeders’ Association, the Canadian Cattlemen’s Association and the eastern cattle coalition to draw attention to processing capacity issues in Ontario and eastern Canada led to significant government investment in the sector this year. If there is a take-away from 2020 it is this: collaboration is key if we have any hope in convincing decisionmakers to listen and address our concerns and priorities.
to the idea of adjusting Canada’s SRM removal requirements, which has been costing our sector tens of millions in lost value every year. I am happy to see meaningful discussions on this topic now taking place within government and industry. The launch of the Certified Sustainable Beef Framework under the Canadian Roundtable for Sustainable Beef (CRSB) at the Cargill Guelph plant was also welcome and long overdue news. The triggering of financial credits from Cargill for qualifying cattle is the first tangible return on investment for producers who have fulfilled CRSB sustainability requirements through the VBP+ program.
In closing, I am thankful for the thoughtful counsel, collaborative spirit and unrelenting perseverance many members and industry colleagues within the beef and broader agri-food sector have shown throughout the year in response to the challenges facing our industry and the economy at-large. I am also deeply appreciative of the hard work and dedication of the BFO staff, who rose to challenges beyond their roles and worked so well together to accomplish what appeared to be impossible at times. 2020 was a year none of us will soon forget, but I am proud of what BFO has been able to achieve and I maintain optimism
BFO also took the time to look
about the course that we have
inward this year, launching the first
charted, and for what lies ahead.
comprehensive governance review in close to 20 years. Taking stock of how BFO conducts its affairs and how the organization can provide better value to members was an important exercise. I commend the Board of
I wish each of you and your families a good recovery from the effects COVID-19 has had on personal lives and business operations, and a happy and healthy 2021.
Directors for pursuing this project.
BFO ANNUAL REPORT 2021
11
BFO SUPPORTS ALL MEMBERS OF OUR COMMUNITY ADVOCATING FOR DIVERSITY, EQUITY & INCLUSION IN THE AGRI-FOOD SECTOR Beef Farmers of Ontario (BFO) joins with those in our community who are calling for an end to systemic racism, as well as discrimination and prejudice based on sexual orientation, gender, religion and ability (visible and invisible), and linguistic discrimination. BFO is committed to advocating for diversity, equity and inclusion within the beef industry and the broader agri-food sector, and fighting racism and discrimination in all its forms. Our commitment comes following
that has taken us time to build and to
The BFO Board of Directors and staff are
many discussions at the board level
ensure we got it right, recognizing and
actively looking at our own organization
over the past several months with
acknowledging this commitment is not
and current activities to see where we
respect to the lack of agricultural voices
a one-time thing. It is a starting point for
can do better and how we can weave
speaking up against racial inequality
what needs to be a continually evolving
education and advocacy around diversity,
and discrimination. There were concerns
conversation and effort, and ultimately
equity and inclusion into existing activities
raised that agriculture will be left behind
a culture shift within the industry. These
and programing. We are also looking at
and out of touch with our consumers if
are more than just words on a page; they
other ideas, initiatives, organizations or
our voices aren’t used to speak up on
represent alignment and a commitment
activities to support or partner on to put
these important social issues.
to future action at our highest level.
our commitment into action. BFO’s full
We recognize the beef sector is not
Recognizing the need to develop from
always a diverse industry, particularly at
within, we are focusing on advocacy and
the farmer and association level. Further
education within the organization and its
along our supply chain, however, there
activities and among the membership.
is a great amount of diversity among
There are a number of ways in which we
the people dedicated to ensuring
are committed to development. Please
As we listen and learn, our commitments
our product makes it to the tables of
see our official statement graphic on the
and actions will continue to develop over
consumers. Likewise, our consumers are
following page for details on what our
time as we work to evolve the culture
another integral and incredibly diverse
specific commitments are.
within the beef industry and broader
group from all walks of life. We feel it is important to be a voice, build bridges, listen, learn, and support all members of our community.
12
BFO will also continue to strongly support community organizations like Feed Ontario, AgScape and 4-H that we know provide important service, support,
The result of our discussions, research
education and programing to diverse
and reflection is a statement of values
communities all across the province.
BFO ANNUAL REPORT 2021
statement of values on diversity, equity and inclusion can be found on the BFO website, and the page will be updated and built upon as we learn, evolve, and put our words into action.
agri-food sector to be more welcoming to and supportive of all members of our communities. In the meantime, if you have questions or if you have thoughts or ideas on actions to consider or areas for improvement, please connect with us.
WE SUPPORT ALL MEMBERS OF OUR COMMUNITY.
The Ontario beef industry is an ally against discrimination based on race, sexual orientation, gender, religion, and ability (visible and invisible), as well as linguistic discrimination. We recognize that we are not always a diverse industry, but we believe in fighting racism and discrimination in all its forms. These are the ways in which we are committed.
• BFO is committed to listening and learning and speaking up against prejudice and discriminatory language, behaviour and actions.
• BFO is committed to increased understanding of how policies and programs related to agriculture affect Indigenous peoples. We commit to working with these groups on contentious issues such as allowing agriculture use on Crown land.
• BFO is committed to advocating for more diversity, equity and inclusion in agriculture. • BFO is committed to education within our industry, including educating our membership on racism and other prejudice as well as promoting diversity and allyship.
• BFO is committed to ensuring our actions are not just self-serving, including promoting and using BIPOC-owned businesses, as well as developing more diverse and authentic recipes that appeal to and celebrate our diverse communities.
• BFO is committed to working in collaboration with other groups and individuals who are more knowledgeable than us on fighting discrimination. • BFO is committed to evolving our commitments as we learn.
BFO ANNUAL REPORT 2021
13
BFO STAFF
14
RICHARD HORNE Executive Director X 234 richard@ontariobeef.com
TAMMY PURDHAM Office Manager X 231 tammy@ontariobeef.com
CATHY GOLUBIENKO Corporate Secretary cathyg@ontariobeef.com
AMBER MCINTYRE Accountant x 222 amber@ontariobeef.com
KATHERINE FOX Manager of Policy and Issues X 236 katherine@ontariobeef.com
DARBY WHEELER Policy Advisor X 226 darby@ontariobeef.com
EVAN CHAFFE Policy Advisor X 233 evan@ontariobeef.com
LEAANNE WURMLI Director of Communications X 230 leaanne@ontariobeef.com
JENNIFER KYLE Manager of Public Engagement and Digital Strategy X 229 jennifer@ontariobeef.com
BETHANY STOREY Communications Specialist X 224 bethany@ontariobeef.com
BFO ANNUAL REPORT 2021
JAMIE GAMBLE Market Information Coordinator x 235 jamie@ontariobeef.com
DAN FERGUSON Manager of Producer Relations 905.375.8551 dan@ontariobeef.com
JACLYN HORENBERG Producer Relations Specialist 519.608.2429 jaclyn@ontariobeef.com
ROBERT MCKINLAY Producer Relations Liaison (Summer Contract) robert@ontariobeef.com
CHERYL RUSSWURM Provincial Supervisor: Ontario Feeder & Breeder Co-op Programs 519.367.5590 crfeederfin@wightman.ca
CHRIS MILLAR Check-Off Inspector 613.324.2207 chrism@ontariobeef.com
CHRIS ATTEMA BFO Contract Water Quality Specialist 905.386.0272 chris@ontariobeef.com
CATHY LASBY BFO Contract Ontario Beef Advertising Manager 519.763.8833 pams@sentex.net
BFO ANNUAL REPORT 2021
15
GOVERNMENT RELATIONS
The value of ongoing relationships with
storage, perimeter fencing and expansion
In late November, the governments of
Members of Parliament (MPs) and Members
activities, and development and expansion
Canada and Ontario made a financial
of Provincial Parliament (MPPs) became
of the province’s processing facilities
commitment of $4 million through the
more and more pronounced over the course
through infrastructure enhancements,
Canadian Agricultural Partnership for a new
of 2020, as face-to-face meetings became
access to labour, and market development.
“Meat Processors Capacity Improvement
near impossible due to COVID-19. Despite the challenges, BFO directors and staff were able to keep Ontario’s beef industry issues and initiatives top-of-mind for many politicians and government staff. BFO also coordinated a grassroots lobbying effort to encourage other provinces to join us in reaching out to MPs and MPPs on shared interests and concerns. The closure of Ryding-Regency heightened the importance of addressing processing capacity issues in eastern Canada and securing direct financial assistance for beef producers struggling from prolonged market losses. In June, BFO welcomed an announcement by federal and provincial ministers of $5 million for an Ontario cattle set-aside program to help manage potential backlogs in processing due to COVID-19. BFO has also focused on sufficient funding for the Ontario Risk Management Program, enhancements to AgriStability, tweaks to the Canadian Agricultural Partnership to allow cost-share funding for manure
16
BFO ANNUAL REPORT 2021
BFO did not host its annual Queen’s Park Beef Barbecue this year due to COVID-19 restrictions, but directors were able to connect with MPPs and political and ministry staff virtually. Some directors were also able to attend on-farm meetings, adhering to social distancing protocols. In July, the province shared some good news by announcing they would contribute an additional $50 million across the RMP sectors for the 2020 program year, fulfilling in part a campaign commitment by the Conservative Party. In August, BFO President, Rob Lipsett, and BFO Executive Director, Richard Horne, presented to the Ontario Standing Committee on Finance and Economic Affairs, highlighting the need for enhancements to business risk management programming for Ontario’s beef farmers in addition to finding solutions to the lack of processing capacity in eastern Canada.
Initiative”, providing up to $150,000 per project for improvements to product handling and processing equipment at Ontario’s meat processors and abattoirs. This was positive news for the sector, but we know more needs to be done to ensure our industry as a whole remains viable and competitive. Leading up to the federal-provincialterritorial ministers of agriculture meeting in late November, President Rob Lipsett met (virtually) with Ontario’s Minister of Agriculture, Food and Rural Affairs Ernie Hardeman on a few occasions in preparation for the Minister’s participation in topics related to the beef industry. Also, BFO directors participated in two virtual federal lobby days with the Canadian Cattlemen’s Association (CCA). The first set of meetings was focused on the federal suite of business risk management programs and the second round of discussions focused on enhancements to AgriStability and the growing trade imbalance between Canada and the European Union and the United Kingdom. With the United Kingdom leaving
the European Union, the Government of
In December, BFO was pleased to see
Canada has been pursuing a new free trade
the proclamation of Ontario’s Security
agreement. While an interim agreement
from Trespass and Protecting Food Safety
has been struck, access to the United
Act. This new legislation will help better
Kingdom will mirror what was previously
protect farmers, their animals, livestock
available under the CETA agreement – an
transporters, and the province’s food
agreement that has placed the Canadian
supply from trespassers and extreme
beef sector at a significant disadvantage
animal rights activists. Throughout 2020,
to our European counterparts, largely as a
BFO and other agriculture organizations
result of unresolved technical barriers for
strongly supported and assisted in the
Canadian beef.
development of this legislation.
BFO is working with CCA and the Canadian
In addition to BFO’s advocacy efforts
Meat Council to expedite Canada’s
and conversations with the federal and
application for BSE Negligible Risk Status,
provincial governments, BFO’s policy
an important step for global trade. Canada’s
team addressed many policies and
application to the World Organisation for
regulations affecting the beef sector,
Animal Health to lower our BSE risk status
working with various government ministries
was officially submitted. Canada should
on a number of critical files. Priority areas
receive notice on our application some time
included CFIA’s consultation on their
this spring. As well, BFO has been allocated
proposed changes to the guidelines for
a seat on the Specified Risk Materials
simulated meat products, updates to the
(SRM) Task Force that includes industry and
Nutrient Management Act that will lessen
government representatives. The mandate
administrative burden on producers,
of the Task Force is to review Canada’s
seeking improved access to veterinarians
existing SRM removal policies and those
and livestock medicine in remote areas,
in other jurisdictions, and come up with a
advocating for interprovincial trade
set of recommendations that Canada could
opportunities, consulting on Ontario’s
assess to modernize our SRM requirements,
new animal welfare legislation, and
provided our BSE risk status is downgraded
amendments to the Ontario Immigrant
in 2021 from controlled to negligible.
Nominee Program.
BFO ANNUAL REPORT 2021
17
RESEARCH AND INNOVATION BFO Research Program
BFO has also partnered with Dairy Farmers of
In late 2019, BFO, with the assistance of the
is researching biomaterials for bale wrapping
As anticpated, cows and heifers were
Livestock Research Innovation Corporation
that could replace the use of plastic, which
moved into the new cow-calf research
(LRIC), initiated a research call for the 2020-
BFO hopes will help address past resolutions
facility in Elora early in 2020. The pastures
2023 BFO research program. We received
around plastic bale wrapping.
have been increased from 160 acres to 400
23 letters of intent from applicants. Following the letters of intent, BFO received 12 full proposals that were presented to the BFO Research Committee for deliberation. From there, 10 projects were selected that focus
The “BFO Research Investment Strategy” was reviewed and revised for the first time since 2014 with input from the Beef Cattle Research Council, the BFO Research
Ontario Beef Research Centre
acres, allowing for more rotational grazing system research on site. The animals started utilizing the new pasture system in Elora in June last year.
on the following BFO priorities:
Committee, and the BFO Board of
The new feedlot barn, which has a capacity
Directors. The updated strategy, which can
of 288, is expected to be completed and
• Environmental sustainability (5)
be found in the research section of BFO’s
ready for use in the fall of 2021. The barn
• Animal health and welfare (4)
website, will help guide BFO’s research
will have 96 more head available than the
• Antimicrobial use, resistance, and
investments for the next four years (2021
older beef feedlot. The new feedlot facility
to 2024).
includes equipment to collect individual
alternatives (2) • Forages (2)
feed intake data on the animals.
• Other (nutrition, feed efficiency, and production process) (2) • Food safety (1)
Ontario on two projects. One of the projects
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BFO ANNUAL REPORT 2021
Livestock Research and Innovation Corporation (LRIC)
• LRIC coordinated, compiled and
tour day for new/young University of
submitted research priorities for the
Guelph faculty members with research
Ontario beef sector to inform the funding
interests in the beef and broader
BFO continues to support LRIC as a
priorities for research programs funded
livestock sector.
founding member. LRIC provides a unified
by the provincial government and
voice and conduit to the Ontario Ministry
University of Guelph.
of Agriculture, Food and Rural Affairs on research priorities for the province’s livestock sectors, which helps inform priorities for research programs funded by the province. This is an important service that ensures the beef sector’s priorities for research on both a provincial and national basis are communicated regularly to provincial funding bodies. In addition: • LRIC membership allowed BFO to utilize LRIC services to administer BFO’s research program, including our 2019 call for proposals.
• LRIC helped eliminate BFO’s research
COVID-19
station access fees at provincial research
As with everything in 2020, COVID-19
institutions, leading to considerable
affected the projects BFO is involved in by
overhead savings on BFO-funded
pushing timelines back due to restrictions
research projects.
around the work environment. BFO
• LRIC launched a “Young Researcher Mentorship Program” that connected young/new researchers at the University
continues to work with the researchers to develop plans of action and update their projects’ timelines as issues arise.
of Guelph with industry and government partners involved in the beef sector, including BFO. Part of this program included a “beef in the spotlight” farm
BFO ANNUAL REPORT 2021
19
COMMUNICATIONS & PRODUCER ENGAGEMENT Ontario Beef Magazine
posted daily to our social channels. We
Ontario Food Box program. As a result,
appreciate our following, but are always
403,000 emergency food boxes were
Ontario Beef was published five times in
focused on increasing our engagement
packaged and shipped to every corner of
2020 (February, May, August, October
and reach with our members.
the province to help alleviate the impact of
and December) and distributed to approximately 16,000 of BFO’s members, industry partners, MPs and MPPs. The magazine provides BFO members and industry stakeholders with timely information, updates on current industry issues, upcoming events, market statistics and more. We continue to update our circulation database to better reflect our active and current membership data, with the goal of ensuring all active members of BFO are receiving this publication. If you have had interruptions in receiving Ontario Beef, please contact the BFO office to verify your complete mailing address. Beginning in 2020, Ontario Beef is now also available digitally on the BFO website.
COVID-19 for families in need.
Sharecost Program The Sharecost Program continues to provide financial support to BFO’s local associations for their hosted producer In 2020, 26 local associations received a total return of just under $62,100.
The e-newsletter captures the headlines of the week, news releases, upcoming events and weekly market information. If you would like to receive The Bull-etin Board in your inbox, please visit the homepage of BFO’s website to sign up.
food banks and community programs across the province.
Sponsorship & Events BFO continued to support a number of
and programs from occurring, we did
initiatives throughout 2020 despite the
see a number of new and innovative
challenges of the pandemic:
engagement ideas take shape by the local associations. Qualifying producer applications in 2020 included drive-thru farm tours and educational workshops, while consumer activities included local
• 4-H Ontario - Virtual Discovery Days • AgScape • Beef Industry Convention • Beef Symposium • Christian Farmers Federation of Ontario • Fall Finale Beef Show • Grey Bruce Farmers’ Week
Partnership with Feed Ontario
• Ontario Federation of Agriculture Virtual
In 2020, BFO provided our annual
• Ontario Forage Council
donation of $20,000 to Feed Ontario to
• Ontario Junior Angus Association Virtual
purchase fresh ground beef. An additional
AGM
Show
$10,000 was also donated to support
• Royal Agriculture Winter Fair
Feed Ontario’s COVID-19 Emergency
• University of Guelph, College Royal
Food Box program that created prepacked emergency food boxes with a week’s worth of food in one centralized
20
farmers continue to support their regional
While COVID-19 prevented some events
Bull-etin Board E-Newsletter issued weekly to our subscribers in 2020.
for Ontario food banks, many local beef
and consumer engagement activities.
beef promotions and drive-thru barbecues.
The Bull-etin Board e-newsletter was
In addition to BFO’s financial support
Producer Engagement
Social Media
location for food banks across Ontario. BFO is pleased to report $3,875 in cash
To provide opportunities for producers
BFO is active on a number of social
donations was also raised after BFO
to network and feel engaged within the
media platforms – Twitter, Facebook,
challenged producers and consumers
industry, BFO’s producer engagement
YouTube and Instagram. Information is
to rally together to support the Feed
team had planned a wide range of
BFO ANNUAL REPORT 2021
activities for 2020. Early in the year,
To address the health of our members,
in Ontario. Filming was completed at
BFO was pleased to be part of another
we launched an article series in Ontario
a cow-calf and feedlot operation to
successful Beef Symposium conference
Beef magazine and an accompanying
highlight employment opportunities in the
at the University of Guelph, and the
webpage called Wellness on the Farm,
production sector.
second edition of the Young Producer
which focuses on the overall wellbeing of
Development program held at the BFO
farmers. As an extension of these efforts,
AGM was well-received by participants.
in July we organized a virtual evening
However, the pandemic took a toll on many of the planned activities for the rest of the year. Our inaugural Feedlot Management School was to be held at the end of March, but obviously needed to be postponed. Likewise, our Beef Youth Development program, as well as the Cow-Calf Management School planned for August met the same fate. We did, however, continue with online programming as much as possible, including our continued collaboration
presentation open to all members with agricultural mental health advocate, Lesley Kelly, as the keynote speaker. The last component of our producer engagement activities in 2020 focused on the development of a number of online resources. We worked with the Ontario Federation of Agriculture to support their Feeding Your Future initiative, a program focused on agri-food jobs and training opportunities
We also provided financial support to the Quebec Beef Producers to develop a Cattle Transport Training Webinar for eastern Canada which will be used to help transporters, auction barns and their employees understand and comply with the new livestock transportation regulations. Lastly, we launched a video series on calf clubs in January, 2021. The intent of these videos is to highlight existing calf clubs, how they work and encourage producers to view these clubs as a viable option to raise and market their animals.
with OMAFRA and Ontario Sheep Farmers on three virtual Grazing Cover Crop sessions, and we hosted a couple of webinars in December for producers – one to provide an overview of Ontario’s Risk Management Program and one featuring Steve Kenyon of Greener Pastures Ranching Limited who spoke about the soil benefits of grazing cattle.
BFO ANNUAL REPORT 2021
21
CONSUMER ENGAGEMENT
As shared in last year’s report, 25 cents
While it looked a little different than
of the $1.50 provincial check-off increase,
what we had originally planned, 2020
implemented in November 2019, stays
was still a very busy year spent building
with BFO to support producer and
momentum with our audiences:
consumer engagement activities. While a lot of work in 2019 focused on rebranding Make it Ontario Beef to our new Ontario Beef identity, 2020’s efforts were spent putting our new strategy into action, engaging directly with the public to drive awareness and purchase of Ontario beef.
Traffic to the consumer website continues to increase steadily. Both of the key campaigns that were run through our social channels throughout the
Ontario Beef supports all Ontario beef
year were focused on driving traffic to
industry stakeholders by laying the
different areas of the site, and did so with
foundation for the promotion of ALL
great success. Website visits increased
Ontario beef products and the entire
by 800 per cent over the course of the
industry. Our focus is entirely on Ontario
year, and 95 per cent of the visitors were
consumers and our efforts support
first-time visitors to the site.
the Ontario Beef Market Development Program, as well as individual farmers, brands, retailers, etc.
We continue to update and tweak the site regularly to ensure it is always fresh and that new content is highlighted. Our
The focus of our consumer engagement
store locator continues to be one of the
program in 2020 was getting our content
most popular stops for visitors to the
in-market, building relationships with
website, so we continue to promote the
influencers and partners, and continuing
opportunity for butchers, retailers and
to build the Ontario Beef brand story with
farmers marketing direct. Currently, there
the public. Fortunately, the vast majority
are about 130 retailers included in the
of our new strategy was designed to be
locator, but we recognize there are still
carried out digitally. When the COVID-19
others who may wish to be included in the
pandemic hit in March 2020, we had to
listings. An application form is available
make minor tweaks to some of our key
from the office for those wishing to have
campaigns with respect to some of the
their retail business added to the map.
in-person activity that was planned, but overall, we were able to execute our digital media strategy as planned, and have done so with excellent results.
Ontbeef.ca
22
BFO ANNUAL REPORT 2021
As part of the website and consumer engagement strategy, a new e-newsletter for Ontario beef enthusiasts will launch in 2021.
Ontario Beef supports all Ontario beef industry stakeholders by laying the foundation for the promotion of ALL Ontario beef products and the entire industry.
Social Media
Each influencer showcased their unique
The focus of our Ontario Beef social
their own channels, as well as ours. Social
media channels in 2020 was to use our
content encouraged participation, asking
content to build an engaged audience
fans to share their own recipes with
across each of our channels, with the
#ontbeefburgerbattle and driving people
bulk of the effort put toward Instagram,
to a landing page where consumers could
Facebook and Pinterest. We also
get recipes from the competition and
launched our first paid social media,
learn more about Ontario beef.
which helped our content find its way in front of those who would be most interested, but who we had not yet connected with. In addition to the regular paid and organic content, we also ran two separate targeted influencer campaigns that helped amplify our messaging at
burger recipe, which was shared through
The competition was all virtual, with DIY footage, sharing and hosting. A “hub” was created on the ontbeef.ca website to serve as a home for each burger master’s video creation. All the recipes are also now available on the hub, as well as in
specific times.
the website’s recipe database.
The first campaign was the “Ontario Beef
Our second key campaign was our “Ask
Burger Battle”, which ran in July and August. The Ontario Beef Burger Battle campaign was designed to celebrate local recipes in the height of grilling season and generate awareness of Ontario beef, keeping it top of mind for
Your Local Butcher” campaign, which as the name suggests, was focused on encouraging consumers to visit local butchers and retailers and ask for Ontario beef. Particularly with shifts brought on by the pandemic, shopping local has never
our consumers during this key period.
been more important to our consumers –
The campaign was a burger creation
sourcing their food locally and supporting
competition between selected food-
their communities. This campaign was
oriented social media influencers around
designed to position local butchers,
Ontario (mostly in the GTA), hosted
retailers and farmers as a knowledgeable
and judged by Gunnarolla (aka Andrew
source that can guide consumers’ culinary
Gunadie). Influencers were selected
adventures and introduce them to the
based on their location and social media
endless possibilities of Ontario beef.
following, as well as their ability to bring a unique burger recipe to life – inspiring our consumers to ask for Ontario beef.
they are more passionate than ever about
Once again, we worked with a social media influencer, Zimmy’s Nook, to generate some fantastic content that
BFO ANNUAL REPORT 2021
23
CONSUMER ENGAGEMENT
CONTINUED
we used to draw attention to our
in a virtual capacity where applicable.
images for our transit shelter ads and
messaging and drive followers to the
We obtained a virtual booth at the Royal
butcher campaign. Hopefully 2021 will let
store locator on our website. In addition,
Agricultural Virtual Experience in the
us get back on location safely to continue
we did a modest media buy securing a
“Agriculture Zone” and welcomed over
to build our library.
number of transit shelter ads in the GTA,
400 virtual visitors over the four days. Our
Ottawa and Kitchener-Waterloo areas.
resources were viewed over 3,000 times,
The transit shelter ads were placed
and our booth and materials will remain
Education
strategically near butcher shops carrying
available to visitors for the rest of the year.
With school looking different and being
Ontario beef products and directed
unpredictable since March, our approach
consumers to visit those locations and ask for Ontario beef. People were very engaged with the butcher-focused content, which was really well-received by both the
Video Production
CONSUMER Even despite the COVID-19 restrictions, we were still able to create a number of ENGAGEMENT new video assets. We completed three
consumer audience and the butcher/ retailer audience. Our transit shelter ads also made it onto social media thanks to a couple of butcher shops very excited about the partnership.
we have strengthened our relationship with AgScape to work on getting our beef messaging in front of students. We were able to provide some resources
new recipe videos, an environmental
for AgScape to include in their “Virtual
stewardship video featuring 2020 TESA
Camp Experience” in the spring. We
winner Paul De Jong, and a few short
were also provided with the opportunity
environmental clips to be used on social
to review resources and lesson plans
media. Most notably, we also partnered
relevant to beef production to ensure
with Farm and Food Care Ontario on a
the information accurately reflects the
Overall, our social media results for
virtual 360-degree tour of a feedlot and
industry. Moving into 2021, we are
2020 were fantastic. Our content –
cow-calf operation, and were pleased to
looking forward to an education resource
both organic and paid – made well
have that launched in time for the virtual
project in partnership with AgScape to
over 18 million impressions, reached
Royal Winter Fair. Thanks to the Brown and
develop curriculum-linked resources for
over 3.7 million users, delivered over
Nesbitt families for their help in making this
use in classrooms to complement our
780k engagements, and drove over
project happen. The 360-degree video
current educational resource offerings. In
55k website visits. We also had some
series can be found on our ontbeef.ca
September, we also had the opportunity
excellent learnings that will help us really
website and the Farm Food 360 website.
to participate in a virtual education day put on by Western Fair.
hone in and target our messaging toward our different audiences as we work to build on the momentum in 2021.
Photography As with other things, COVID-19 foiled some
to education needed to shift. As a result,
Promotional Items and Resources
Event Participation
of our photography plans for the year,
Throughout 2020, the team worked
however, we were able to capture some
on several new resources that are now
One area of our workplan that was
great on-farm shots in northern Ontario
available. These resources include a
affected the most in 2020 was events.
in the summer and with the McArthur
recipe booklet that replaces our previous
With all in-person events cancelled for
family in the fall. We also did a mini beef
individual cards, a kids’ colouring book
2020, we contributed and participated
“glamour” shoot to capture some specific
to replace the dated kids’ activity sheet,
24
BFO ANNUAL REPORT 2021
and a general Ontario beef brochure. To coincide with the launch of the “Ask Your Local Butcher” campaign, we also developed a number of promotional items to be used in-store or in general promotion of Ontario beef, and those are available through the office. 2020 was an interesting year with its own unique set of challenges, but overall, it was a very successful year for our consumer engagement program. We are continuing to build on the momentum in 2021 and also plan to test out some new tactics, such as podcast advertising and search engine marketing. Be sure to follow Ontario Beef on social media and visit our website to keep up to date on our consumer engagement efforts, and stay tuned to our magazine for regular updates on our activities.
Our content received over 18 million impressions We reached over 3.7 million users
BFO ANNUAL REPORT 2021
25
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM BY JIM CLARK | CEO, Ontario Beef Market Development Program As with most organizations, 2020 began
numbers of slaughter cattle stabilized since
Beef. Ontario Corn Fed Beef has been
with a heightened sense of optimism within
2012. Since that time, we have also seen
the market-leading brand of Canadian
the Joint Marketing Committee. The new
a steady decline in imports, while Ontario
beef in Japan since its entrance to that
Ontario Beef Market Development Program
production’s share of consumption has
market in 2015, and it continues to see
was developed and approved, and our first
concurrently increased. This all provides a
tremendous growth. This year’s event was
year of implementation began in January
strong rationale for the increased marketing
also the initial launch of a second brand
2020. The new program provides Ontario
efforts we have undertaken.
of Ontario beef in Japan: Ontario Heritage
beef farmers with a clear path forward with a defined market development strategy featuring clearly defined objectives and comprehensive market indicators and performance measures to demonstrate
Ontario beef featured in key trade events in domestic and international markets
60,000 influential Japanese retail industry delegates annually and is the priority retail trade event in Japan.
In January, we partnered with Canada
Many other high-profile events in key
Beef to host several Ontario beef-branded
export markets that we had planned for in
I want to thank the committee members,
programs at the Restaurant Canada show.
2020 were cancelled due to the pandemic.
Rob Lipsett, Jason Reid, Craig McLaughlin,
This event provides Ontario-branded
Markets affected include Vietnam, Taiwan,
Jack Chaffe, Dale Pallister and Mike Conlin,
beef suppliers with access to national
Philippines and Singapore. As these
for their willingness to provide strong
foodservice customers and suppliers and
markets reopen, we will be in a strong
leadership and direction to the strategy.
the opportunity to showcase their products
position to re-engage with the established
in a high-priority industry event that attracts
relationships developed in each market.
return on check-off investment.
The strategy was developed to support growth for branded Ontario beef by supporting established brands in the local market, supporting the development of new Ontario beef brands, and expanding
over 20,000 industry delegates. Having Ontario beef brands represented in our national pavilion provides a high level of profile and credibility.
Promotional events in key export markets Many of our high-value export markets
our marketing efforts into key international
Ontario beef was also represented at the
continue to be severely affected by the
markets to continue to drive demand for
Japan Supermarket Trade Show in Japan
pandemic. The United Arab Emirates and
Ontario cattle. By specifying Ontario cattle
in February in collaboration with Canada
the Kingdom of Saudi Arabia are both
in these brands, the market essentially eliminates a portion of imported beef as a supply option since it is not open for substitution. Increased demand for local cattle benefits all sectors of the cattle supply chain. We have seen the impact of the increased share of our domestic market. After several years of steady decline, we have seen Ontario fed slaughter volumes and inventory
Angus Beef. This event attracts over
26
BFO ANNUAL REPORT 2021
priority markets that have been severely
year, we had planned on hosting customers
initiatives in Ontario, as packers and
affected by losses in the tourism and
from Japan, Vietnam and Taiwan here in
retailers focus on operations and safety of
hospitality industries. With committed
Ontario, which unfortunately had to be
their employees.
partners in these markets, there is good
cancelled due to the pandemic. These
opportunity for us to gain back share once
missions provide valuable opportunities
the situation is resolved.
for foreign buyers and targeted customers
With a very strong distribution partner and retail customer base, we continue to prioritize the Japanese market by providing promotional support for existing Ontario beef brands. Japan has also been significantly affected by the pandemic, but retail demand has been very high as more consumers are cooking meals at home. Currently, there are 21 retail partners promoting Ontario beef in 567 outlets across Japan. Ontario Corn Fed Beef is the most widely recognized brand of Canadian
to understand cattle and beef production in Ontario and experience the vast natural resources of Ontario. Valued relationships with many key export customers from Japan, China, Indonesia, United Arab Emirates, Saudi Arabia and the United States have been developed through incoming trade missions.
Coronavirus pandemic affects program implementation
beef in Japan. Ontario beef export volumes
By end of February last year, implementation
and values are outpacing Canadian beef
of the strategy was being significantly
exports to Japan from 2016 to 2020.
affected by the coronavirus. It quickly became clear that the focus of the strategy
Loss of incoming trade missions Incoming trade missions are an important
The foodservice sector, which represents a significant percentage of beef sales in the province, has seen sales drop by as much as 40 per cent, as reported by market analysts. At the end of June, many dining establishments were limited to take out or patio dining with limited menu options. As the year came to an end with a provincewide lockdown of restaurants, the impact once again was significant. We also saw a massive drop in customer capacity in the catering sector, which typically drives high volume during the summer months. With the significant challenges facing the industry, focus has shifted to supporting existing brand partners.
supporting our existing brand partners in
Promotional activities to support Ontario beef
key markets around the world.
Promotional initiatives were supported
in 2020 needed to primarily focus on
strategy in developing relationships with
The pandemic has had a significant impact
targeted customers in export markets. This
on the ability to develop new branding
with distributor partners, retail chains, and independent butcher shops and
BFO ANNUAL REPORT 2021
27
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM
CONTINUED
restaurants across the province. Many of
beef industry is well positioned to meet
the activities reinforced the commitments
this increasing market demand. Our retail
of our brand partners and enhanced
and foodservice partners have also been
awareness in the market.
very clear in their desire to source certified and sustainable beef in Ontario.
Enhancing value of Ontario beef through quality assurance
CRSB certification is an excellent way
already successful quality assurance
for Ontario farmers to share their
program,” said Anne Wasko, Chair of
sustainability story. Consumers are
CRSB. “Incorporating the option of CRSB
The Ontario Beef Market Development
increasingly interested in how their food
certification is a win-win for Ontario’s beef
strategy also prioritizes creating value
is produced, and they are seeking more
industry with a single streamlined audit
for producers in Ontario-specific quality
information than ever before about the
process, which will help meet consumer
assurance programming, which enhances
practices used to raise beef in Canada.
demand for sustainably raised beef.”
our ability to differentiate Ontario beef
From land and water stewardship to
and enables Ontario producers to capture
supporting local communities, and from
market opportunities from on-farm quality
animal care to innovations that improve
assurance programs.
efficiency and productivity, certification
A significant outcome of this objective
provides producers with recognition for the
“Local beef raised under a quality assurance program was identified through our public research as an important purchasing driver for consumers, so
sustainable practices they already employ.
having a made-in-Ontario program that is
Quality Assurance Program becoming an
As a result of the approval of Ontario Corn
members and consumers well,” shared
approved certifying body for the Canadian
Fed Beef Quality Assurance Program as
Richard Horne, BFO’s Executive Director.
Roundtable for Sustainable Beef (CRSB). To
a CRSB certifying body, Ontario’s feedlot
obtain approval, the Ontario Corn Fed Beef
sector and the bulk of finished animals in
Quality Assurance Program was thoroughly
the province will be well positioned to take
reviewed and assessed by the CRSB and
advantage of sustainable beef programming.
resulted in the Ontario Corn Fed Beef
the oversight body, NSF International.
also recognized nationally will serve our
MARKET INDICATORS Market indicators are data points or
It is anticipated that the market will see
tangible outcomes that indicate progress
This approval is an important milestone for
an increase in demand from the feedlot
towards the overall performance measures.
our industry because the market demand
sector for VBP+-certified calves in the
They are reported annually.
for beef raised according to sustainability
cow-calf sector, especially from those who
standards, as set by CRSB, continues to
are interested in participating in Cargill’s
increase. At this time, demand exceeds
Certified Sustainable Program.
the available supply. And with the recent certification of the Cargill Guelph facility to process cattle originating from CRSBcertified farms and ranches, the Ontario
offering this element within their
28
BFO ANNUAL REPORT 2021
“We are pleased with Ontario Corn Feed Beef’s commitment to supporting their producers in demonstrating sustainable practices in Ontario feedlot operations by
Ontario Federal & Provincial Cattle Processing 2020 slaughter volumes were affected by coronavirus interruptions, and also by the closure of a federal plant in 2019 (Ryding
Source: BFO
Industry Perceptions Surveys Surveys of industry partners provide perspective on the value of support programs provided. Surveys are an industry standard of measurement to provide insight into return on producer investment and assess perceived value of project-related services among industry partners, including Regency). Ontario slaughter volumes were showing strong growth from 2016 to 2019. An effective Ontario Beef Market Development Program will contribute to increasing slaughter volumes and more demand for Ontario fed cattle.
value is driven by export markets. Export volume of Ontario beef to Japan has increased to a projected 10,500,000 kg in 2020 from 3,739,313 kg in 2016. This is an increase of 181 per cent. At the same time, increased to a projected
Federal/Provincial Share of Total Slaughter Share of federally and provincially inspected slaughter has remained consistent prior to 2020. Provincial share increased in 2020, with significant impacts
$77,000,000 in 2020 from $24,006,036, which is an increase of 221 per cent. Ontario beef marketing efforts in Japan began in 2015 with Ontario Corn Fed Beef. Kg Volume Ontario Beef Exports to Japan
to federal slaughter related to coronavirus
Provincial
2017
88%
12%
2018
89%
11%
2019
88%
12%
2020
85%
15%
Ontario Beef Exports to Japan
ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN ONTARIO 86% Completely Agree 14% Somewhat Agree 10 respondents
ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN EXPORT MARKETS 100% Completely Agree 5 respondents
ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN JAPAN 100% Completely Agree
and loss of a federal plant in 2019. Federal
packers, exporters, retailers and distributors.
12 respondents
$ Value Ontario Beef Exports to Japan
Due to market closures in several high-priority export markets related to coronavirus, Ontario beef export initiatives in 2020 were focused on Japan. It’s important to note that the value of export markets is that they provide significant opportunities to increase the overall value of Ontario beef carcasses.
Source: AAFC
Canfax Research Services estimates that over $600 or 38 per cent of a fed carcass
BFO ANNUAL REPORT 2021
29
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM
CONTINUED
PROJECT EXPENSES Revenue amount of $1,100,000 for the
The Ontario Beef Market Development
party assessment of results generated
2020 strategy was based on BFO check-
strategy will be evaluated annually
against the performance measures will
off projections. The Ontario Beef Market
for return on check-off investment,
be provided to determine return on
Development Program is funded by
including project deliverables, expenses
investment of the $1.25 per head of
$1.25 of producer check-off investment in
and market indicators. There will be a
Ontario check-off funding allocated to the
Ontario.
comprehensive review of all performance
program.
measures at the end of 2023.
Actual expenses for 2020 totaled $678,203.45. Expenses include marketing and promotions, program implementation, project management/contracted services, market intelligence/data services, and
Activity
30
measures at the end of 2023, a decision
designed to measure key factors that
will be made to continue with the strategy,
affect the competitiveness and long-term
make revisions to the strategy, or cancel
viability of the Ontario cattle industry.
the strategy and reallocate the funding to
As per the agreement between BFO
other marketing initiatives.
and OCFA, a comprehensive third-
administration. Program Expense
2020
2020
Budget YTD
Expenses
Domestic Market Development
$ 175,000.00
$ 68,102.13
Global Market Development
$ 175,000.00
$ 43,237.26
Regional Brand Programs
$ 20,000.00
$
Quality Assurance Program
$ 50,000.00
$ 49,432.25
Promotional Materials
$ 40,000.00
$ 8,711.35
Trade Missions
$ 35,000.00
$ 1,805.72
Travel
$ 50,000.00
$ 10,507.36
Total Program Expense
$ 545,000.00
$ 181,796.07
Total Overhead Expense
$ 555,000.00
$ 496,407.38
Total Expense
$ 1,100,000.00
$ 678,203.45
BFO ANNUAL REPORT 2021
After the analysis of the performance
Performance measures listed below are
-
Our vision is to have Ontario beef recognized and valued by our industry partners and consumers around the world.
2020-2023 PERFORMANCE MEASURES Expected Outcomes of Activities Increased values for Ontario cattle
Indicators of Success
Performance Measures/Source
Impact on Ontario/regional fed & calf
Independent assessment of cattle market
prices
impact
Increased share of Ontario-branded beef in
# of new brands developed
Market scan
domestic & export markets
Impact of activities to support existing
Market survey
brands Ontario Beef export volume & value
Ontario share of Ontario consumption
Independent assessment of cattle market impact
Volume & value of Ontario Beef exports
Stats Can data
Ontario share of Canadian beef exports in
Independent assessment of export data
target markets Increased market penetration of Ontario
# of branded products introduced into
Market scan
beef value-added products
market
Independent assessment of cattle market impact
Recognized value for Ontario Beef
Harmonization of Ontario QA program(s)
Assessment of Ontario QA program(s)
quality assurance (QA) program(s)
in Ontario
Value created by QA program(s)
QA requirements by industry # of cattle qualified for QA certification # of cattle in Ontario certified as CRSB Growth in Ontario beef processing
Ontario slaughter volumes
industry Increased Ontario slaughter cattle
Independent assessment of cattle market impact
Slaughter cattle population
volumes
Independent assessment of cattle market impact
Growth in the Ontario Corn Fed Beef
# of program cattle
Independent assessment of cattle market
program
Value of fed cattle market
impact
Growth in the Ontario cow herd
# of Ontario cows
BFO/Canfax data
Our mission is to create an environment where Ontario beef farmers are profitable and sustainable for future generations.
BFO ANNUAL REPORT 2021
31
COMMITTEE REPORTS BFO Cow-Calf Committee Submitted by Steve Thede, Chair
“Remote sensing applications to ensure
The BFO Cow-Calf Committee met during
project, also known as the pasture-
day two of the AGM in February, 2020
satellite project and committee members
to review the terms of reference for the
were asked to consider granting the
committee and to elect the committee chair
research team access to capturing
and vice-chair. Steve Thede, representing
satellite images of their pastures.
the backgrounder sector on the committee, was elected chair and Jason Hurst was
individual farm forage production”
• T he committee agreed to reviewing the
elected as vice-chair for 2020-2021.
Heifer Holdback Program and provide
There was a joint meeting of the Cow-Calf
working group.
Committee and Feedlot Committees in May and then the Cow-Calf Committee met again in June. These meetings took place virtually
recommendations to the national
• T he committee reviewed the Profitability to the board the simplified version of the
A summary of committee actions and
be uploaded to the BFO website.
your review below. • C ommittee members shared experiences
profitability calculator be used and that it
• A Cow-Calf Management School Trial Webinar was discussed and the committee asked that Steven Kenyon be
on how COVID-19 is affecting their
pursued to participate in a trial webinar
operations as it relates to processing,
on an evening in the fall.
buying/selling and marketing; feed availability and rations; and financial impact. • C ommittee members provided feedback on a proposal from BFO staff on a nonvoting youth delegate at BFO’s annual general meeting, which is a concept that has been discussed by both committees at a previous meeting. • T he committee provided feedback on the 2020-2024 National Beef Strategy priorities and goals, in collaboration with the Feedlot Committee.
32
BFO ANNUAL REPORT 2021
2020 Cow-Calf Committee Steve Thede CHAIR Jason Hurst VICE CHAIR
Kirby Hakkesteegt Don Hargrave Kevin Krakar
Don Badour
Nickolas Martin
Brent Cadeau
Jason Reid
Joe Dickenson FEEDLOT REP
Lyndon Wagenaar
Calculator and made a recommendation
via Zoom due to COVID-19 restrictions.
recommendations has been provided for
• B FO confirmed participation in the
• T he committee agreed with forgoing
BFO Feedlot Committee Submitted by Scott Cochrane, Chair The BFO Feedlot Committee has met twice since the 2020 AGM last February. In addition, some members of the Feedlot Committee were involved in the Set-Aside Program Advisory Committee and the SubCommittee on Fed Cattle Price Reporting.
hosting the Beef Youth Development
Feedlot Committee members also took
Program until summer 2021.
part in BFO’s weekly/bi-weekly COVID-19
• An update from the lead researcher on the Biodegradable Bail Wrap Project was requested for the next committee meeting. The 2020-21 Cow-Calf Committee is grateful for the support of BFO Board of Directors and staff and the opportunity to
beef industry update calls that occurred throughout 2020. A summary of committee actions and recommendations has been provided for your review: • Provided feedback and
meet to discuss topics that are important to
recommendations on the development of
Ontario’s cow-calf sector.
the Ontario Beef Set-Aside Program
• Struck a sub-committee to assist with and help guide the transition of BFO’s Fed Cattle Price Reporting Pilot with Canfax into a permanent program • Provided feedback on the 2020-2024 National Beef Strategy priorities and goals, in collaboration with the BFO CowCalf Committee • Provided feedback and comments on Ontario Risk Management Program redesign discussions, in collaboration with the BFO Cow-Calf Committee In closing, I want to thank my fellow committee members for committing their time and energy to the Feedlot Committee this year, and to the BFO staff who supported the committee’s business.
2020 Feedlot Committee Scott Cochrane CHAIR
Jason Hurst COW-CALF REP
Steve Eby VICE CHAIR
Scot Legge
Jack Chaffe Joe Dickenson Chris Freiburger
Jarius Maus David Millsap Darrell Russett Matt Shortreed
BFO ANNUAL REPORT 2021
33
ONTARIO BEEF BREEDER CO-OPERATIVE PROGRAM The eight Breeder Loan Program co-ops across Ontario have
also increased. Some members need to be continually reminded of
continued to operate over the last year with a typical business
their obligations to their co-op.
pattern as experienced in the past. Unfortunately, only two co-ops experienced growth from June 2019 to June 2020. The largest co-op continues to grow and has about 40 per cent of the provincial activity. What doesn’t fluctuate much is the average number of females financed per member. This continues to hover around 29 head. It ranges between co-ops from 21 to 39.
partners are supportive of the cow business and work with the coops based on regional needs. As we head into 2021, we appreciate that some parts of the province have better and more ample feed supplies. As well, winter weather has been less harsh so far, depending on where you live.
The average amount owing per active member has increased to
The bottom line is there should be some great calf crops arriving
over $33,000. Unfortunately, the number of overdue loans has
this spring.
The Beef Breeder Co-op Program is administered by the Beef Farmers of Ontario. PROVINCIAL SUPERVISOR: Cheryl Russwurm 519.367.5590 EMAIL: crfeederfin@wightman.ca
The co-ops continue to be financed by either CIBC or FCC. Both
34
BFO ANNUAL REPORT 2021
BRUCE-GREY BEEF COW FINANCE CO-OP Theresa Cameron (Grey/Bruce) 519.507.9894
EAST BEEF BREEDER CO-OP Denise Cassidy (Leeds to Victoria County) 613.478.5226
HURON-PERTH-MIDDLESEX BEEF BREEDERS CO-OP Janice Hawkins-Wylie (Huron/Perth/Middlesex) 519.887.8899
OTTAWA VALLEY BREEDER CO-OP Jim Cochran (Carleton/Lanark/Renfrew) 613.256.3835
RAINY RIVER BEEF BREEDER CO-OP Joyous Bragg (Rainy River, Thunder Bay, Dryden and Kenora) 807.482.3948/2498
SOUTH QUEENS BREEDER FINANCE CO-OP Rick Lekx (South Bruce, South Grey, North Huron, Wellington) 519.881.4523
SOUTHWEST BEEF BREEDERS CO-OP Alex Gray (Lambton/Essex/Kent and east to Norwich area) 226.378.1731
TEMISKAMING/COCHRANE BEEF BREEDER CO-OP Mike Rheaume (Northeastern Ontario and Manitoulin Island)
PROGRAM STATISTICS YEAR as of June 30th
705.648.4536
2020
2019
2018
2017
2016
Number of members
374
403
396
382
346
Number of active members
362
365
359
350
317
10,380
10,656
10,019
9,387
9,069
$12.1
$12.6
$13.4
$12.9
$12.9
Average # of females per active member
29
29
28
27
29
# of new members in first 6 months of year
19
26
29
26
36
1,212
1,136
1,346
1,312
1,300
Total cow inventory Total principal outstanding (million)
# of females purchased in first 6 months
BFO ANNUAL REPORT 2021
35
ONTARIO FEEDER CATTLE LOAN GUARANTEE PROGRAM 2020 started off with the Ontario Feeder
annual meeting on March 11th, 2021. Many co-
Members continued to operate and
Cattle Loan Guarantee Program on a good
ops are using Zoom videoconferencing for
adapt, and we have seen little change
solid foundation. Requested updates
director meetings after the colder weather
in activity. Like everyone else, the
and revisions were in place, the BFO
sent them indoors. We have also focused
temporary shutdown of Cargill started a
Feeder Finance Executive Committee was
on producing the option of using paperless
lot of conversations on “what-if” scenarios
functioning well, and the Co-op Act had
forms for the program.
regarding how members might be affected.
been modernized as well.
The program hit a milestone in November,
The Advance Payments Program, which
It was business as usual, except we still
with 30 years passed since the first Order
is offered by BFO via the feeder finance
had a slight disruption from the decreased
in Council was signed. Members have
co-ops, had a decrease in participants,
processing capacity the industry had
purchased over 2.2 million head since the
to about 275 in 2020. Prime dropped
experienced in September 2019.
beginning, when six co-ops bought 13,000
to 2.45% in March, so we have seen
head in a year. It is estimated that over $1.78
the average interest paid on behalf of
billion worth of loans has been advanced.
participating members decrease by $700
With the onset of the pandemic, we all tended to pause for a couple of weeks, and
to about $1,550.
then started a journey of adaptation. And we
The program is up for a five-year review
are still adapting. We will have our first virtual
in 2021, and the executive has several
For a listing of feeder finance co-ops and
proposed changes and clarifications they
administrator contact information, visit
would like OMAFRA to address.
“Programs” at www.ontariobeef.com.
PROGRAM STATISTICS 2020
2019
2018
2017
2016
Number of Co-ops:
16
16
16
16
17
Total Membership:
795
802
804
806
844
During Year
724
749
757
730
794
As of December 31
600
599
611
622
652
Under Age 40:
256
244
270
292
317
Purchased in Year
96,529
92,748
95,265
97,466
91,631
Sold in Year
92,482
93,363
94,434
95,056
86,872
On Hand, December 31:
75,013
70,891
71,337
70,998
68,834
$102.5M
$95.3M
$97.7M
$98.3M
$88.0M
Total Amount Committed, December 31:
$106.1M
$98.6M
$101.4M
$105.1M
$94.5M
Total Loans Advanced During Year
$134.5M
$125.7M
$136.3M
$126.8 M
$155.9M
Active Members:
Number of Cattle
Financial Outstanding Loans, December 31:
36
BFO ANNUAL REPORT 2021
MARKET STATISTICS Four Convenient Ways to Access Market Information from the BFO Office Website www.ontariobeef.com
markets@ontariobeef.com
Phone TF: 866.370.2333 Local: 519.824.0334 Ext. 300 - Daily Report Ext. 301 - Noon Report
Fax
519.824.9101
BFO ANNUAL REPORT 2021
37
Replacement Steers 1,000 lb + Ontario Average Monthly Price
Replacement Steers 1000 lbs +
Price per hundred weight
Ontario Average Monthly Price 2018
195.00
2019
2020
5 year Avg 2015-2019
185.00 175.00 165.00
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
155.00
Replacement Steers 500-599 lb Ontario Average Monthly Price lbs Replacement Steers 500-599 2018
Ontario Average Monthly Price 2019
2020
5 year Avg 2015-2019
Price per hundred weight
235.00 225.00 215.00 205.00
38
BFO ANNUAL REPORT 2021
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
195.00
Replacement Steers Ontario Average Monthly Price Per Hundred ReplacementWeight Steers
Ont Average Monthly Price per Hundred Weight Over 1000 lb.
Month
500 – 600 lb.
2020
2019
2018
2020
2019
2018
January
176.07
178.78
178.49
222.26
210.05
215.05
February
175.88
172.95
178.90
225.67
205.67
223.80
March
162.00
166.72
167.54
212.05
198.88
218.68
April
155.06
164.17
158.42
215.54
220.72
207.01
May
168.60
163.87
157.14
230.62
216.34
210.51
June
166.06
157.66
157.97
234.73
207.46
213.80
July
167.96
163.88
161.46
220.65
198.66
212.20
August
175.94
175.46
173.70
221.54
207.49
213.37
September
176.54
170.83
182.32
224.35
206.36
221.07
October
178.67
170.62
185.44
217.07
209.01
219.50
November
171.31
178.06
177.19
217.51
209.84
203.88
December
169.07
173.79
180.71
208.85
216.02
209.92
Stocker Volume Sold Stocker Volume Sold Through Ontario Auction Markets Through Ontario Auction Markets 260,000
255,000
250,000
Number of head
245,000
240,000
235,000
230,000
225,000
220,000 Stockers
2016
2017
2018
2019
2020
248,379
251,185
243,835
258,755
244,940
BFO ANNUAL REPORT 2021
39
Ontario Auction Markets Large and Medium Frame Fed Steers Ontario Auction Markets lbFed + Steers 1250 lbs + Large and Medium1,250 Frame Ontario Average Price - Per Hundred Weight Average Weekly Weekly Price Per Hundred Weight Week #
2020
2019
2018
137.13
142.77
149.27
139.71
140.02
147.18
143.12
137.90
134.36
143.82
141.99
136.55
143.43
142.52
141.66
138.85
147.32
144.74
138.93
146.23
146.24
139.96
144.15
149.36
143.84
139.67
147.57
143.58
133.34
149.14
135.87
131.97
151.20
135.68
123.68
147.94
138.46
139.01
146.19
136.72
140.77
143.78
138.13
148.51
139.21
139.04
147.38
141.79
137.76
142.85
142.54
139.35
151.25
147.05
139.44
149.07
152.00
140.60
150.41
143.72
151.73
140.16
143.23
161.53
143.91
141.98
159.22
144.94
143.93
159.85
143.55
146.97
25
154.63
144.19
146.43
26
137.72
144.23
141.45
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
40
BFO ANNUAL REPORT 2021
Week #
2020
2019
2018
130.90
141.91
138.69
145.94
143.20
143.17
146.74
143.23
138.66
141.28
142.88
140.69
139.92
140.85
140.93
144.02
139.50
139.12
143.90
139.93
138.72
144.99
138.96
133.07
142.54
138.18
133.02
141.64
138.39
133.29
138.56
132.24
133.96
137.36
133.42
136.76
138.68
130.37
133.87
137.05
131.66
138.35
138.63
139.02
134.72
132.74
133.46
139.13
135.90
130.60
134.97
135.60
130.84
127.81
134.75
131.47
133.46
136.73
130.10
131.83
137.15
127.28
132.13
134.31
129.98
126.99
135.63
129.99
130.99
126.71
134.50
134.90
51
115.31
137.72
134.59
52
N/T
137.93
131.23
27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Beef Cow Volumes On Ontario Farms
Beef Cows On Ontario Farms 290,000 Total number of head
280,000 270,000 260,000 250,000 240,000
2011
2012
2013
2014
2015
2016
2017
2018
2019
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
220,000
Jan
230,000
2020
Total number of head
Data from Statistics Canada -Cattle Stats
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000
Ontario Annual Processing Volumes Federal and Provincial Inspected Plants Ontario Annual Processing Volumes Federal & Provincial Inspected Plants
2016
2017
2018
2019
2020
Steers
415,070
419,877
427,646
434,563
413,396
Heifers
142,245
136,700
137,563
148,747
134,573
Cows
71,224
100,615
114,469
103,989
92,452
Data Source- Canfax/CBGA
2020 totals are preliminary
BFO ANNUAL REPORT 2021
41
Ontario Railgrade Steers Ontario Average Monthly Price
Ontario Railgrade Steers
280.00 Price per hundred weight
Average Monthly Price
2018
2019
2020
5 year avg- 2015-2019
270.00 260.00 250.00 240.00
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
230.00
Ontario Exports of Beef Products to All Countries Ontario Exports of Beef Products to All Countries 95,000,000
Total Kilograms of Product
90,000,000
85,000,000
80,000,000
75,000,000
70,000,000
65,000,000
60,000,000
55,000,000
United States
2016 Japan
Mexico
2017 Hong Kong
Source: Statistics Canada, Prepared by AAFC/MISB/AID/Redmeat Section
42
BFO ANNUAL REPORT 2021
2018 Korea, South
Peru
2020 - January to November Only.
2019 Viet Nam
2020 (Jan - Nov) Taiwan others
Ontario Railgrade Steers Ontario Packing Plants Average Weekly Price Per Railgrade HundredSteers Weight Ontario Packing Plants
Average Weekly Price per Hundred Weight
Week #
2020
2019
2018
Week #
2020
2019
2018
1
247.00
247.00
256.50
27
220.00
244.00
249.00
2
247.50
N/T
256.00
28
235.00
242.00
249.00
3
251.00
251.75
253.50
29
245.00
242.00
248.00
4
252.50
257.25
252.00
30
242.50
242.00
248.00
5
N/T
N/T
250.75
31
242.50
239.50
246.75
6
254.75
N/T
248.50
32
244.25
238.50
239.00
7
254.00
257.50
248.50
33
245.00
239.50
230.00
8
251.00
257.00
253.00
34
245.00
236.00
230.00
9
247.75
251.50
255.00
35
244.75
235.50
230.00
10
245.00
250.00
255.00
36
240.25
238.00
229.75
11
N/T
250.00
255.00
37
232.00
238.00
229.00
12
235.00
251.75
256.00
38
N/T
233.00
231.00
13
235.00
N/T
254.50
39
N/T
232.25
236.50
14
N/T
N/T
245.50
40
230.00
233.00
238.00
15
239.00
257.50
244.00
41
230.00
233.00
240.00
16
238.00
257.50
244.00
42
231.00
236.00
244.00
17
238.00
258.50
244.00
43
231.25
234.00
244.50
18
238.00
258.50
250.75
44
N/T
234.50
245.00
19
238.00
258.50
254.00
45
228.00
235.50
244.25
20
240.00
258.25
253.25
46
228.00
235.50
244.00
21
261.25
256.00
248.00
47
230.00
235.50
244.00
22
270.00
255.00
246.00
48
232.00
237.00
244.00
23
274.25
252.00
246.00
49
232.00
237.50
244.00
24
N/T
251.25
246.00
50
232.00
238.75
244.50
25
245.00
248.75
248.00
51
232.00
242.00
245.00
26
226.25
247.00
249.00
52
N/T
N/T
N/T
BFO ANNUAL REPORT 2021
43
Ontario/Alberta Fed Steer Price Spread Dressed Basis Ontario/Alberta Fed Steer Price Spread -Dressed Basis
$60.00 $50.00
per hundred pounds
$40.00 $30.00 $20.00 $10.00 $0.00 -$10.00
wk 49
wk 51
wk 49
wk 51
wk 47
wk 45
wk 43
wk 41
wk 39
wk 37
wk 33
5 year Avg- 2015-2019
wk 31
wk 29
wk 27
wk 25
wk 23
wk 21
wk 19
wk 17
wk 15
wk 13
wk 9
wk 11
wk 7
wk 5
wk 3
2020 wk 1
-$30.00
wk 35
-$20.00
Data Source: Canfax/BFO
Ontario/U.S. Fed Steer Price Spread Dressed Basis Ontario/U.S. Fed Steer Price Spread -Dressed Basis
$60.00 $50.00 per hundred pounds
$40.00 $30.00 $20.00 $10.00 $0.00 -$10.00 -$20.00
Data Source: USDA/BFO
44
BFO ANNUAL REPORT 2021
wk 47
wk 45
wk 43
wk 41
wk 39
wk 37
wk 33
wk 31
5 year Avg- 2015-2019 wk 29
wk 27
wk 25
wk 23
wk 21
wk 19
wk 17
wk 15
wk 13
wk 11
wk 9
wk 7
wk 5
wk 3
2020 wk 1
-$40.00
wk 35
-$30.00
Monthly Average Warm Carcass Weight Steers Monthly Average Warm Carcass Weight Steers Ontario
Canada
Month
2020
2019
2018
2020
2019
2018
January
968
972
972
908
936
909
February
964
969
971
909
919
908
March
957
967
968
911
915
909
April
958
964
960
911
907
886
May
940
962
938
909
877
846
June
912
937
914
875
868
844
July
912
913
909
882
881
867
August
922
923
920
908
911
894
September
937
941
935
932
925
922
October
950
951
950
952
932
932
November
956
965
960
953
930
925
December
968
972
971
938
920
929
Data Source: Canfax/CBGA
Monthly Average Warm Carcass Weight Heifers Monthly Average Warm Carcass Weight Heifers Ontario
Canada
Month
2020
2019
2018
2020
2019
2018
January
867
867
854
833
858
830
February
872
873
859
840
847
837
March
868
862
855
853
848
833
April
859
856
858
840
851
826
May
837
854
849
858
821
798
June
825
829
841
821
791
785
July
824
816
810
801
807
798
August
817
813
819
822
828
824
September
825
833
819
847
842
843
October
827
836
829
866
849
847
November
841
848
839
852
849
855
December
852
866
856
855
834
849
Data Source: Canfax/CBGA
BFO ANNUAL REPORT 2021
45
Beef Grade Distribution 2020 CANADA
Quality Grade A Prime AAA AA A B1 B2 B3 B4 Total
Youthful Cattle Beef Grade Distribution 2020 Federally Inspected Plants Percent Yield Group Y1 0.05 3.94 7.02 0.93
Y2 0.56 23.79 14.82 0.51
Y3 1.42 25.41 5.67 0.10
11.95
39.67
32.59
Y4 1.01 8.86 1.14 0.01
Total Y5 0.45 2.48 0.22 0.00
11.02 3.16 No. head graded: 2,619,701
3.49 64.48 28.87 1.56 0.10 0.03 0.20 1.27 100
ONTARIO
Quality Grade A Prime AAA AA A B1 B2 B3 B4 Total
Youthful Cattle Beef Grade Distribution 2020 Federally Inspected Plants Percent Yield Group Total Y1 0.01 0.91 3.45 0.56
Y2 0.49 22.54 13.39 0.16
Y3 1.50 27.07 5.36 0.01
Y4 1.84 14.85 1.31 0.00
4.92
36.58
33.94
17.99 5.02 No. head graded: 489,139
Note: Based on gradings in federally inspected plants.
Y5 1.05 3.80 0.17 0.00
Mature Cattle Grade Distribution 2020 Federally Inspected Plants Percent Ontario Canada D1 14.10 19.26 50.14 60.37 D2 D3 33.56 28.66 2.17 2.89 D4 E 0.04 3.26 63,653 346,354 Total head graded Total head ungraded 18,745 91,056 Note: Canada adopted the US yield grade criteria for youthful cattle in January 2020. Data Source: CBGA/Graeme Hedley
46
BFO ANNUAL REPORT 2021
4.88 69.17 23.68 0.73 0.00 0.02 0.02 1.41 100
Canadian Live Cattle Live Imports and Exports Canadian Cattle Imports and Exports - U.S.
Imports into Canada
800,000
Exports from Canada
Number of head
700,000 600,000 500,000 400,000 300,000 200,000 100,000 0
2016
2017
2018
2019
2020
Data Source: Agriculture and Agri Food Canada 2020-Imports- Jan 1- Nov 30 2020-Exports Jan 1/20- Jan 2/21
Canadian Beef Imports and Exports Canadian Beef Imports and Export
Total Beef Imports
Beef Imports from US
Beef Imports Non-Nafta
Beef Exports
400,000 350,000
Tonnes
300,000 250,000 200,000 150,000 100,000 50,000 0
2016
2017
2018
Data Source: Agriculture & Agri Food Canada 2020-Imports- Jan 1- Dec 28, 2019 2020-Exports Jan 1- Nov 30, 2020
2019
2020
BFO ANNUAL REPORT 2021
47
48
BFO ANNUAL REPORT 2021
INDUSTRY IN REVIEW Beef Cattle Research Council Canada Beef Canadian Beef Check-off Agency Canadian Cattlemen’s Association Canadian Cattle Identification Agency Farm & Food Care Ontario Livestock Research Innovation Corporation Ontario Cattle Feeders’ Association Ontario Beef Cattle Financial Protection Fund
BFO ANNUAL REPORT 2021
49
BEEF CATTLE RESEARCH COUNCIL Beef Producer National Check-Off Investments in Research
BCRC 5-Year Funding Portfolio As of June 17, 2020 Animal Health & Welfare
The Beef Cattle Research Council (BCRC)
5% 7
%
is Canada’s industry-led funding agency for beef, cattle, and forage research. Its
20%
mandate is to determine research and development priorities for the Canadian beef cattle industry and to administer the Canadian Beef Cattle Check-Off funds allocated to research. The BCRC is led by a 14-member Council comprised of 13 producers, including Ontario’s
Antimicrobial Use, Resistance & Alternatives Beef Quality
4 9
26
%
7%
16
%
% %
6
%
Environmental Sustainability Feed Grains & Feed Efficiency Food Safety Forage & Grassland Productivity Research Capacity Tech Transfer & Other Technology Transfer
Ron Stevenson and Matt Bowman (current BCRC Chair), and one member at large. The number of members from each province
to assess the impacts of the COVID-19
is proportional to the amount of provincial
pandemic on research at facilities across the
allocation of national check-off to research.
country. The impacts vary greatly across the provinces and depend on factors including
In 2019/20, $3.6 million of national
project requirements, as well as personal
producer check-off funding allocated to
and local pandemic situations. Most of the
research leveraged an additional $5.1
ongoing research projects continued with
million in industry funding from other
minimal interruption. Some of the new
government and industry partners and
projects that were scheduled to start as
initiatives, including the Agriculture and
early as April 2020 were delayed, however
Agri-Food Canada (AAFC) Beef Science
all projects are scheduled to continue. The
Cluster program. Investing the national check-off and government and industry funding in key research priorities identified by stakeholders, the BCRC currently funds 69 projects led by researchers nationwide.
Impacts of COVID-19 on BCRC Activities Since March 2020, the BCRC has worked closely with industry and government
50
BFO ANNUAL REPORT 2021
Dr. Ben Bohrer (Ohio State University) recently completed a project that summarized the nutrient density and nutritional value of beef, pork, lamb, poultry, seafood and plant foods. It shows how costeffectively beef can provide the nutrients that Health Canada reports are lacking in many Canadians’ diets (protein, vitamin B12, iron and zinc), often with fewer calories.
second wave of the pandemic during the fall could result in further delays, although the overall impact is undetermined at time of writing. BCRC continues to work with its funding partners, including AAFC, to evaluate if there will be any program and/or budget implications for 2020/21 or 2021/22, but to date, the impact has been minimal on the research program.
industry magazines, webinars, blog posts, infographics and radio clips. New Video: How To (and Not To) Resuscitate a Newborn Calf. Find it at beefresearch.ca > Resources > Videos
One of the extension initiatives currently underway is utilizing expertise within the Canadian Beef Technology Transfer Network working in eastern Canada to
One of many resources for beef producers on the BCRC’s website, the “Value of Calving Distribution Tool“ is an interactive calculator that allows producers to see what their current calving distribution is, and what the impact on revenue would be if they move to the industry target of 6025-10-5, or a condensed breeding season of three cycles. Find it at beefresearch.ca > Resources > Decision Making Tools
Specific to the pandemic, BCRC funded
identify information and data gaps in current
COVID-19-related research initiatives,
BeefResearch.ca content to enhance and
including developing technology to
create more resources applicable to eastern
support the remote delivery of inspection
Canadian beef producers. Stakeholder
services at processing facilities, research
working and advisory groups have been
to determine the risk of COVID-19 infection
2023. Planning is currently underway to
established, which include extension
due to changing airflows in processing
determine research and extension priorities
experts and producers representing Ontario,
facilities as COVID-19 physical barriers
for a potential fourth Cluster.
Quebec and the Atlantic provinces. The
are put in place, and economic analysis to
groups are discussing extension gaps in
support the development of eastern cattle price insurance indices. These projects are well underway. BCRC extension programming has continued to operate without interruption since the pandemic hit. Overall, the impact of COVID-19 on the BCRC budget and operations has been manageable, given the flexibility in allocating
their regions and working to refine and prioritize the identified needs. This will guide collaborative resource development for BeefResearch.ca over the coming years.
Researcher Mentorship The Beef Researcher Mentorship Program,
industry funding across years, the existing
an initiative to facilitate greater engagement
online platforms for resource and program
of upcoming and new applied researchers
management, and the ability of BCRC staff
with Canada’s beef industry, is in its seventh
to work remotely as required. Larger than
year. Six researchers were accepted into the
expected funding deferrals will occur in
program this year to be mentored by both
2020/21 due to delayed project start-ups.
producers and other industry professionals.
All budget and program implications will be
The opportunity deepens researchers’
closely monitored as we head into 2021.
understanding of the needs of the beef industry in practical and meaningful ways.
Producer Resources and Industry Engagement BCRC continues to develop and distribute
This year’s research projects outside of the Science Cluster are proceeding as approved in the spring of 2020. There were some project start-up delays due to COVID-19, as mentioned above, however all projects are proceeding. Projects include research on beef quality, food safety, animal health and welfare, antimicrobial use and resistance, feed efficiency, forage production, as well as environmental sustainability. Information on each project is available on www.beefresearch.ca.
For More Information To learn more about BCRC initiatives and to access our many resources and decisionmaking tools for beef producers, visit our website at www.beefresearch.ca.
Priority Research Projects Continue to Expand BCRC’s Research Program
numerous producer and stakeholder
The 27 research projects funded under
resources, including fact sheets, interactive
the third Beef Science Cluster continue,
decision-making tools, videos, articles for
with most of the projects wrapping up in
BFO ANNUAL REPORT 2021
51
CANADA BEEF pandemic significantly affected Canada
Beef Cattle Research, Market Development
Beef programs as virtually all domestic and
and Promotion Agency, Canada Beef
international activities were affected by social
Canadians cooked at home like never
is the cattle producer-funded and run
distancing protocols on cattle processing,
before and one of the most popular items
organization responsible for domestic
retail and foodservice operations, and the
they cooked was Canadian beef. Interest
and international beef and veal market
ability to export products to markets.
in buying, preparing and serving Canadian beef was at a record high, as were the
development. It has 24 staff in offices in Canada, Japan, China, Taiwan and Mexico. In addition to National Check-Off and import levy funding, Canada Beef leverages cattle producer dollars with private market partner investments and government industry development funding to maximize the benefits of producer check-off investment.
COVID-19 Trade Outreach
questions coming from consumers. The
Canada Beef worked collaboratively with the
in total users (93 K) and 73% increase in new
national associations representing beef, veal
users of the website in March compared to
and pork. Resources were developed for Canadian consumers and meat professionals in domestic and international markets. The focus was to provide reassurance around
Canada Beef works to build a dynamic,
the safety of meat and our ability to maintain
profitable and competitive Canadian
a stable supply by safeguarding the health
beef and veal industry where Canadian
of Canadians working in the sector. In
high-quality beef and veal products are
addition, Canada Beef’s marketing team
recognized as the most outstanding by
has developed programs to help increase
domestic and international customers.
consumers’ comfort and skills in preparing
These efforts ultimately increase demand
Canadian beef at home.
for Canadian beef and the value producers receive for their cattle.
COVID-19 Impact and Response The COVID-19 pandemic had an enormous worldwide impact on agriculture and agrifood businesses. The rapid emergence of the pandemic affected global supply chains
A fact sheet outlining the measures taken by the Canadian meat industry to protect against COVID-19 was produced in eight languages. It was distributed, along with a cover letter signed by seven association leaders, to meat professionals in Canada, Mexico, China, Hong Kong, Macau, Philippines, Singapore, Vietnam, Indonesia,
Canadabeef.ca website saw a 66% increase
the same time last year. The ThinkBeef.ca website saw a 450% lift in monthly visits – up by 13,000 visits comparing traffic in February to March (to March 23). Two scheduled consumer marketing campaigns scheduled for March 2020 shifted focus to meet consumer needs. Restaurant options are limited. We know consumers have stocked up on beef from the grocery store and while they’re in their kitchens ready to cook, many aren’t sure where to start—they need help in the way of recipes, serving suggestions and cooking instructions. Content shifted to focus on culinary topics, with recipe inspiration to shake up mundane meal routines, and how-to information to enable consumers to brush up on their beef-centric food skills.
South Korea, and Japan.
Domestic Market Development
world’s population. Packing plant closures
A double-page fact sheet was created for
Total beef consumption in 2020 is projected
and slowdowns challenged North American
consumers with clear, easy-to-understand
to be up 3%, with 78% of beef consumed in
delivery systems to keep domestic shelves
information on COVID-19—what it is, how
Canada sourced from domestic production,
stocked and meet export market demand.
to prevent it, the assurance that domestic
down from 81% in 2019. Wholesale demand
Canadian consumers experienced a sense
livestock and meat are not affected, as well
has been relatively steady since 2016,
of uncertainty, which resulted in stockpiling
as food safety tips. The factsheet is available
ranging narrowly between 85.2 and 87.6. In
meat and other essential supplies. The
at canadabeef.ca (both English and French).
2020, wholesale beef demand is projected
and the normal daily routines of much of the
COVID-19 Consumer Outreach
As the marketing division of the Canadian
52
BFO ANNUAL REPORT 2021
to be up 12%, with several demand and
subscribers covering topics that are both
engaging and entertaining, the videos
supply shocks resulting in volatile prices
culinary and brand focused. The Roundup
meet the needs of four distinct Canadian
and strong retail demand as the market was
App is a mobile beef buying and cooking
beef-user audiences, from aspiring home
shaken by COVID-19.
app, designed to help consumers have
chefs and butchers to seasoned veterans in
better success with beef when they cook
culinary and meat cutting industries.
Expand Programs with Retail and Foodservice Partners
at home. Closely related to consumer
By focusing on brand partners with large
Canada beef continues to partner with
volumes and influence (such as Sobeys, Costco, Loblaw, Walmart, Federated Coop, Tim Hortons, Swiss Chalet, Montana’s, Subway and Sysco), Canada Beef can ensure these partners are well-versed in
marketing are efforts to build the beef industry’s social license with the public.
Protect and Grow Canadian Beef in Export Markets
the CCA and other beef industry groups
Canada Beef’s work in export markets is
to address public and consumer concerns
creating opportunities for the Canadian
about beef production, while also building/
beef industry to realize greater value for
reinforcing the Canadian beef brand.
the carcass than could be realized in the domestic market alone. As well as offering competitive bids on middle meats, the
of the Canadian Beef brand.
Generic Beef Marketing Funded by the Import Levy
This year, Canada Beef introduced a
The import levy (collected on beef
here at home. These export markets have
new domestic trade-marketing program
imports at the equivalent rate of $1 per
called the Domestic Market Development
head) continues to provide funding for
Program. The program provides cost-shared
positive beef messaging across Canada.
funding support for eligible Canadian Beef
With consumers’ diminishing food skills,
representative company-initiated projects
concerns over healthy diets, and public
and activities in five broad based categories
trust issues, Canada Beef developed
essential for facilitating export market growth.
targeted initiatives to positively influence
It is a 50/50% cost-shared funding for eligible
consumer preference for beef over other
stakeholder-initiated for generic, branded
proteins. Visit www.thinkbeef.ca for access
and co-branded projects in Canada.
to marketing resources generated from
Canadian beef and can leverage the value
import levy funding.
Consumer Marketing and Public Trust
export markets can deliver better returns for end meats, credit/thin meats and offal than been affected by the COVID-19 pandemic similar ways to the domestic market. Canada Beef introduced a new export program this year called the Canada Beef Export Market Development Program that provides cost-shared funding support for eligible Canadian Beef representative company-initiated projects and activities in five broad based categories essential for facilitating export market growth. The program features 50/50% cost-shared
Canadian Beef Centre of Excellence
funding for eligible stakeholder-initiated
engage and connect with consumers and
The Canadian Beef Centre of Excellence
for 75/25% cost-shared when stacked on
producers to build brand loyalty. With over
(CBCE) is a teaching/training demo theatre
68,000 followers and 25 million impressions,
featuring fabrication room, commercial
Canada Beef continues to successfully
and home kitchen, boardroom and dining
build relationships and drive demand. At
room, world-class equipment, and HACCP
Canadabeef.ca website, consumers and
standards. The CBCE team embraced the
producers can source information regarding
need for digital training resources and
recipes, beef know-how, beef campaigns,
increased distance learning opportunities.
fact sheets and events in both English
The team created educational video
and French. The Make it Beef monthly
resources for Canada Beef’s new trade
e-newsletter is deployed to almost 40,000
website, www.cdnbeefperforms.ca. Quick,
Canada Beef’s social and digital spaces
projects outside of Canada with a potential provincial government grants. There are five eligible categories. Canadian beef exports from January to November 2020 were down 4.6% in volume and up 0.2% in value. These are down from the 2019 record-high values and near record-high volumes. Overall, Canadian beef export demand is projected to be up 3.4% from 2019.
BFO ANNUAL REPORT 2021
53
CANADIAN BEEF CHECK-OFF AGENCY As the Chair of the Canadian Beef Check-
need to make a measurable difference to
association partners on check-off collection
off Agency this past year, I have witnessed
the industry, and help our beef and veal
and remittance training, to help us all work
our organization hit its full stride and take
producers see valuable returns.
together to increase compliance, reduce
hold of the matters important to producers. It is our job to oversee the check-off administration and investments on behalf
expenses totaled $718,870, which included
slippage, and have a consistent level of base knowledge across the country.
both our Agency Board of Directors and the
The Agency took a more strategic approach
Marketing Committee. It is up to our Agency
to import levy collections, and has been
Board to ensure the dollars are invested
able to hold the amount of uncollectable
into programs and strategies that will make
levies to approximately five per cent of total
In 2019/20, the Canadian Beef Cattle
a difference today, tomorrow and down the
import levy receivables. This has been a
Check-Off amount invested into national
road. This includes our own administration
monumental task for the Agency, reviewing
programs was $17,906,566 from cattle
and programming expenses, too.
over 200 invoices per month and dedicating
of Canadian beef producers, and I can confidently say that I am proud of what these investments continue to accomplish.
marketed across Canada.
We spent time on some of our regulatory
special attention to hundreds of companies to ensure timely payments and help them
Of the total check-off funds collected (net
framework this year, reviewing the
administration), 49 per cent was allocated to
Proclamation under which we operate.
market development and promotion, 34 per
We worked with our provincial partners to
The Agency’s website traffic grew through
cent to research, 12 per cent was retained
ensure the framework continued to allow
the year, with a total of 5,333 unique
by the provincial cattle organizations for
us the freedom to provide the best possible
users visiting the site. The site, along
regional marketing and research programs,
value for Canadian beef and veal producers.
with the Agency’s social media channels,
and five per cent was allocated to Public and
understand the ins and outs of the levy.
increased reach to producers in new The Agency was pleased to enter into
audiences, focusing on young producers.
agreements with the Veal Farmers of Ontario.
Our audience grew on all channels, and we
The import levy on beef cattle, beef and
The agreements strengthen Canadian veal
continue to try and communicate effectively
beef products imported into Canada
marketing as a part of the larger Canadian
with you – our most important stakeholders
was collected at a rate of $1 per head
veal marketing initiative, while adding an
– in as many ways as we can.
equivalent, for a total of $1,100,342. These
additional levy collector to the provincial
funds (net administration) are allocated
cattle associations across the country.
The Agency’s Board was committed to
We also targeted compliance on check-
strong policies to govern the Agency.
off and import levy collections this
The strengthened policy manual and
Stakeholder Engagement.
to unbranded, generic beef marketing, such as nutrition marketing, recipe development and culinary skills education.
The Agency’s operations and administration
transparent governance and developing
year. The federal levy on interprovincial
the work done on succession planning
With a record amount of check-off being
marketings was targeted for inspections
and business continuity this year will
collected this year, I know that we have
on auction markets and dealers, with the
help guide the Agency now and as
an important job to do. The check-off
focus on education and understanding
the industry grows and transforms. By
investments made to research, marketing,
levy remittances. Another component of
working with the board members who
and public and stakeholder engagement
that was working with all our provincial
have the interest and skills to grow their
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BFO ANNUAL REPORT 2021
leadership roles at the Agency, the
administration, and clear lines of
And while things might look different for
board is able to plan for the future and
governance and communication.
the foreseeable future in so many ways,
ensure a sustainable leadership model.
The year of 2020 brought some incredibly
rest assured that we continue to focus on the best interests of our Canadian beef and
We were able to have our Marketing
difficult times for our industry, and I know
Committee fully functional for its second
that there have been many sleepless
year. The group is incredibly dedicated
nights and difficult conversations by
To all of you who represent our industry:
and producers can rest assured that this
producers and industry partners alike
thank you. Thank you for continuing to
committee has their best interests at
about the future of our industry. In light
provide food to Canadians and the world,
heart. The Committee operated at arm’s
of that, I want to assure you that our
length from the Agency while guiding
Agency, and all those who invest check-off
the strategic direction of Canada Beef, the organization investing check-off dollars into market development and promotion. The Committee ensured
dollars on your behalf, have been working
veal producers every single day.
and for being dedicated to what you do. It is your dedication and passion for our industry that makes this job so rewarding.
incredibly hard to do what’s right for the
Chad Ross
Canadian beef industry.
Chair, Canadian Beef Check-Off Agency
continued separation from the Agency
BFO ANNUAL REPORT 2021
55
CANADIAN CATTLEMEN’S ASSOCIATION As I look back on 2020, it seems fitting to
division. The inclusion of the seedstock
of October when we were only one per cent
reflect on the challenges and opportunities
sector will strengthen our collective efforts
below 2019 export values.
coming out of the Canadian beef industry’s
and create opportunities that will benefit
experience navigating the uncertainty
the entire beef industry for years to come.
created by the COVID-19 pandemic. The Canadian Cattlemen’s Association (CCA) took a collaborative approach to our response efforts and our industry quickly mobilized. We immediately initiated several crossorganizational teams, which included industry leaders, provincial cattle organizations, policy professionals, industry stakeholders, the scientific community, and media. Our focus was on maintaining business continuity – keeping our borders open to trade, ensuring inspection services remained available, ensuring clear and timely communication, and sharing best practices based on public health recommendations to support important industry activities.
2020 was an active year for CCA. Significant progress was accomplished on
Our trade priorities continue to focus on
the Comprehensive and Progressive
maintaining and growing our beef exports.
Agreement for Trans-Pacific Partnership.
Implementation of new trade agreements over the last number of years has allowed Canadian beef producers access to new markets and opportunities. This year was anticipated to be positive, thanks to recently negotiated access through various trade agreements and regained technical
to support beef producers during the
cent in value over 2018. However, COVID-19
pandemic. Following the federal government’s
brought forward unforeseen challenges
announcement of an initial investment in the
that tested the capacity of Canadian beef
agriculture sector in May, CCA continued to
processors and inevitably affected our
meet with Parliamentarians regarding the
ability to supply our export markets.
cattle, and investment in resiliency within the packing industry, as well as economics, specifically related to international trade. Many of the recently announced, recommended BRM enhancements by the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, are directly aligned to the requests made by CCA. In 2020, we welcomed the Canadian Beef Breeds Council as a new operating
56
BFO ANNUAL REPORT 2021
pleased that our access into world markets
Mexico Agreement, the Comprehensive
exports increasing by just under 20 per
programs set-aside for the backlog of fed
optimization of current agreements. CCA is
Trade
Government of Canada recommendations
business risk management (BRM) programs,
removal of technical trade barriers, and the
has improved in recent years thanks to new
access that resulted in 2019 Canadian beef
and discussions focused on changes to
the continued expansion of free trade,
key files. Here are a few highlights:
CCA also developed and submitted to the
impacts of COVID-19. Our recommendations
In addition to pandemic-related efforts,
CCA continues to strongly encourage
trade agreements, such as the Canada-U.S.Economic and Trade Agreement, and
Of particular importance this year is advancing reciprocal access through a Canada-U.K. trade relationship. In December 2020, the Government of Canada announced the continuity agreement to transition between the Comprehensive Economic and Trade Agreement and a future Canada-U.K. free trade agreement. CCA recognized the Government of Canada’s efforts to maintain uninterrupted market access into the U.K. by pursuing an interim agreement. However, CCA’s highest priority is on achieving a long-term free trade agreement with the U.K. that resolves trade barriers that continue to
Here at home, our processing plants
exist within the current CETA agreement.
especially were faced with unprecedented
CCA was pleased to see a commitment by
challenges and they adapted as quickly
both countries’ governments to return to
as possible to implement new practices
negotiating a full free trade agreement within
and innovations to mitigate the spread of
a year, and encourages both governments to
the virus while maintaining worker health
do so as soon as possible.
and safety. The numerous measures taken helped to maintain this essential service and provide a stable supply of food to Canadians and customers around the world. Despite
Humane Transportation Regulations for Livestock
these extraordinary efforts, trade did suffer
Changes to livestock transportation
in the first half of the year with beef exports
regulations brought in by the Government
falling 8.3 per cent in value from 2019 (as of
of Canada remains a key issue for Canadian
May 2020), but largely recovered by the end
beef cattle producers. The proposed changes
saw feed, water and rest intervals for cattle drop from 48 hours to 36 hours, and rest stop durations increase from five to eight hours. Additionally, there are a number of new recordkeeping components and definition updates for unfit and compromised cattle. The new regulations for the humane transport of livestock came into force on February 20, 2020, with a two-year transition period on the enforcement of feed, water and rest interval provisions for the cattle sector. This will allow time for education, awareness-building, and development of rest stop infrastructure. CCA continues to work with government to develop solutions to outstanding challenges with the regulations and ensure that changes will contribute to demonstrable improvements in cattle welfare and not negatively affect the beef cattle transportation success rate of over 99 per cent.
FMD Vaccine Bank
Environment
CFIA modelling has shown that a Foot
The challenges of COVID-19 have had their
and Mouth Disease (FMD) outbreak in
impact on environmental policy issues. Our
highly populated livestock regions would
target remains firm, which is to enhance
represent one of the worst-case scenarios
opportunities to partner on policy, especially
for Canada and require between 1.9 million
environmental policy solutions we can
and 2.7 million doses of FMD vaccine.
crystalize with the federal government. We are
We currently have a significant shortfall
also focused on communicating the positive
in available emergency vaccine, and the
environmental impact beef production has
14-week timeframe to produce a vaccine
on soil health, carbon sequestration, and
represents a significant risk to the livestock
biodiversity on our grasslands across Canada.
industry and the Canadian economy.
We have a wonderful story to tell, and we
Given the known catastrophic devastation risk of an FMD outbreak in Canada (estimated at over $50 billion to the GDP), CCA has lobbied the Government of Canada to establish a Canadian FMD Bank. Formal discussions between CCA, CFIA, AAFC and other affected species groups were launched in the fall of 2020, and work
The CFIA has informed industry that they will
continues into 2021. CCA is recommending
exercise flexibility in cases where industry
the FMD Bank have 30 million doses,
is unable to meet the recordkeeping and
consisting of 2.5 million doses each of
transfer of care documents requirements
12 different FMD vaccine concentrates
under Part XII of the regulations during the
deemed highest risk to Canada. The
COVID-19 pandemic.
projected annual cost for a fully sustained FMD Vaccine Bank is $3 million.
OIE BSE Negligible Risk Status
are making significant headway on this with consumers and policy-makers. CCA continues to engage with government concerning the Fisheries Act. The Act received Royal Assent in June 2019 prior to the regulations being developed. The Department of Fisheries pledged to consult with stakeholders on the development of standards, codes of practice, and prescribed works regulations. The Department of Fisheries has developed six interim codes of practice, and we have provided initial feedback on these codes before they are to be finalized. CCA is also engaging with the Department
In partnership with CFIA, CCA is co-chairing
Food Policy
of Fisheries for clarity on the development
a working group for Canada’s submission
In recent years, we have seen greater global
for BSE Negligible Risk Status to the World
species including Bull Trout, Chinook,
and national attention on food policy. The
Organisation for Animal Health (OIE). All
Coho Salmon and others, as it is unclear
consumer, and therefore the policy-maker,
target milestones were achieved, and a
how critical habitat is determined. Also,
is increasingly interested in where their
strong application was submitted in July
CCA encourages the development of a
food comes from. CCA has participated in
2020 for consideration by OIE in the
national framework for Ecological Goods
these important discussions. We have been
spring of 2021. Achieving BSE Negligible
and Services.
involved in the Government’s “Healthy Eating
Risk Status in Canada will have a positive
Strategy”, the “National Food Policy” and
impact on market access, and it sets the
most recently, the “Simulated Meat Labelling
stage for a review of Canada’s specified
Guidelines”. Recognizing that the focus
risk material removal protocols and an
on food, health and the environment will
opportunity to become more competitive
continue, CCA created the new Food Policy
with our key trading partners. A similar
Committee in 2019. This Committee will lead
working group for this effort is already
on issues like alternative proteins, front-of-
underway in cooperation with CFIA.
pack labeling, food waste, and more.
of recovery strategies for specific aquatic
In 2021, the CCA will continue its dedicated work on behalf of Canada’s 55,000 beef farms and ranches to realize the vision of a profitable Canadian beef industry with high-quality beef products recognized as the most outstanding by customers at home and around the world. Bob Lowe President, Canadian Cattlemen’s Association
BFO ANNUAL REPORT 2021
57
CANADIAN CATTLE IDENTIFICATION AGENCY Continuing to prepare for and anticipate proposed regulations, launching a new resource centre, and operating through a global pandemic made 2020 an interesting year for the Canadian Cattle Identification Agency (CCIA).
Proposed Regulatory Amendments All regulatory packages have been placed on hold. It is anticipated that in the late summer of 2021, based on priority for release that will not impact the economic recovery, Canada Gazette I will be published with the traceability regulatory amendments.
COVID-19
It will be followed by 90-day consultation
CCIA paid close attention to all public health updates and incoming information regarding COVID-19. As a happy result, CCIA’s digital systems worked well by offering traceability needs from the comfort and safety of the user’s home. The Canadian
period. It is an additional two years from that point until regulations will be in effect.
UHF tags, which are highly supported by the feedlot and packer sectors. While CCIA is technology neutral, we have a project underway to review all relevant literature available on the subject and its application to the livestock industry, which was successfully approved for funding. The next step, which has recently been submitted for funding, is to draft an implementation plan to phase out of the current tags (low
The regulatory changes are intended
frequency) and phase in UHF.
to enable a more timely and effective response by CFIA. Proposed amendments
It is important to note that International
to Part XV of the Health of Animals
Organizational Standards for UHF
Livestock Tracking System (CLTS) and the
Regulations have been postponed once
technology are two years away from having
CLTS MOBO APP were created for that
again but are still under consideration.
testing standards for UHF. All current
convenience, and these platforms continued to assist with traceability requirements. Tags were shipped directly by mail
approved tags have to meet ISO standards.
Tags
through the webstore and Client Support
• Allflex
Representatives were available toll-free to
In anticipation of the fall run, Allflex
assist users with any additional needs.
made specific advancements to the
Staff worked from home from March to September, and again starting in November, with a current return on January 25, 2021. The return has been supported by new office conduct policies with modified cubicles to provide additional protection to staff in close proximity. CCIA is also pleased to be providing assistance to the Alberta and
There have been lots of discussions about
stud component of their tags. This was done as part of their commitment to continual improvement and to provide a response to tag retention issues reported by producers. The new design and
Centre (CRC), support.canadaid.ca, went live mid-year. It was a big project for the Communications, Client Support and IT teams. The new CRC is your “how to” destination
been validated globally on tens of millions
for everything CLTS. Here you’ll find
of animals, will be adopted immediately
comprehensive guides for how to submit
upon CFIA approval and identified
events, frequently asked questions,
on Allflex packaging with an updated
and more. Each guide features simple
Saskatchewan provincial governments with the set-aside program for fed cattle.
• Ultra-High Frequency (UHF) Tags
BFO ANNUAL REPORT 2021
The new and improved CLTS Resource
manufacturing methodology, which has
notification sticker.
58
The new CLTS Resource Centre – your CLTS “how to” destination
instructions and screenshots to guide you through each process step-by-step.
Chat Feature
necessary modifications. The change will be
national administrator responsible for
totally implemented by April 2021. The tags
dairy bovine animals under Part XV of the
We’ve added a chat feature to canadaid.ca
have not changed, as they have always had
Health of Animals Regulations.
and support.canadaid.ca providing another
15 digits, only the submission to the CLTS
option for customers to reach Client
has changed, now requiring all the digits.
Support without speaking directly on the phone or sending an email. The chat box only appears during business hours.
Dairy
CCIA entered into a service agreement with Lactanet, and after the October 5th DairyTrace launch, continued receiving regulated data from intermediate (i.e.
Lactanet Canada and Dairy Farmers of
feedlots) and terminal sites that report
Change to Submissions to the CLTS
Canada moved forward with “DairyTrace”,
events for dairy tags. The reporting for
the national dairy cattle traceability
those regulated parties will continue as
On October 1st, CCIA began phasing the
program. This became a reality in October
they know it, but all data related to dairy
requirement from 9-digit data entry to
and provides a single, common framework
tags will reside at DairyTrace and not in
all 15 digits when submitting data to the
for dairy farmers to track animal identity
CCIA’s CLTS database.
CLTS. This is a staggered change allowing
and movements. Earlier in the year, the
all types of data submissions to make
CFIA recognized Lactanet Canada as the
BFO ANNUAL REPORT 2021
59
FARM & FOOD CARE ONTARIO
Farm & Food Care Ontario (FFCO) is
for a course and hosted a session at
A new, interactive website (www.
grateful for the continued support of
Cattlemen’s College in February.
RealDirtonFarming.ca) will provide
Platinum Members like Beef Farmers
opportunities for digital learning and
of Ontario (BFO), which enables us to
content sharing, and will be updated
pursue the important work of building public trust in Ontario agriculture. With the appointment of BFO director Jason Leblond in 2020 to an ex officio role on our board, FFCO’s work with BFO has
FarmFood360°
between publications. A supplementary Teachers’ Guide created in partnership with Agriculture in the Classroom Canada will be distributed in 2021 to educators across Canada.
been strengthened even further.
The completion of a beef farm virtual
As COVID-19 realities landed early in 2020,
FarmFood360°. With teachers and
FFCO was faced with some challenging
students transitioning to online learning
FFCO looks forward to connecting with an
but necessary decisions to cancel all
and agricultural organizations seeking to
audience of food writers, bloggers, chefs,
planned physical events for the year.
connect with consumers virtually, www.
Registered Dietitians, culinary instructors
With large followings on social media and
FarmFood360.ca welcomed over 835,000
and students and professional home
strong website platforms, FFCO was able
users and 2.95 million page views in
economists each year. With farm tours
to shift strategies and activate a number
2020, a 1,222 per cent and 470 per cent
impossible, FFCO partnered with the Royal
of meaningful virtual programs that made
increase over 2019 respectively. Thanks to
Agricultural Winter Fair to host a virtual
this a remarkably successful year for FFCO,
a partnership with BFO, viewers can now
version of the annual Food & Nutrition
despite the complicated circumstances.
tour a beef feedlot and cow-calf operation
Forum and connect with 250 attendees
and meet two farm families sharing how
from the same target audience. Wanting
they care for animals and the environment
to focus on livestock and sustainability as
on their farms. Appreciation goes to the
a key topic, the event featured Dr. Sara
Brown and Nesbitt families for hosting the
Place of Elanco as one of two keynote
filming crew on their farms last summer.
speakers. A beef farmer from Alberta was
Training and Workshops FFCO supports member groups, farmers and the broader agricultural industry through a variety of speaker services and training. In 2020, this included 36 presentations and 15 virtual “Speak Up”
COMMUNICATIONS & OUTREACH
reality tour was a great addition to
The Real Dirt on Farming
Virtual Food & Nutrition Forum
also included in a farmer panel discussion.
Farm to Facebook
and media training courses that are
2020 marked the launch of the fifth
designed to help participants effectively
edition of The Real Dirt on Farming. The
FFCO and AgScape partnered in 2020 to
engage with the public or media. Other
publication, supported by commodity
offer a series of Facebook Live farm tours
virtual training sessions focused on
groups and agribusinesses across
throughout 2020. “Farm to Facebook”
activist-related issues and providing
Canada, including Canada Beef, covers
allows viewers, including students and
advice on how to protect farm properties
topics such as the relationship between
teachers, to connect with farmers in real
from unwanted visitors. In addition to
grazing animals and the environment
time. A total of 17 tours attracted 93,429
three courses held with BFO in 2019,
and careers in the agri-food sector. 32
views over the year, including one in
FFCO partnered with the Peterborough
career profiles are featured, including
May featuring BFO director Jordan Miller
Cattlemen’s Association in January 2020
two beef farmers and a beef researcher.
and his cousin Cam. FFCO and AgScape
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BFO ANNUAL REPORT 2021
will continue to offer these tours throughout 2021.
Faces Behind Food “Faces Behind Food” continues to highlight the diversity of people and career opportunities within the Canadian agri-food system. A total of 104 people were profiled in 2020. The campaign continues to feature beef farmers in regular rotation, including the Buis family from Chatham, the Badour family from Renfrew, Blair Williamson from Lambton, Kim Jo Bliss from Rainy River, the team at Keady auctions, and several 4-H beef club members interviewed at the 2019 RAWF. Faces Behind Food also received recognition at the Best of Canadian Agri-Marketing Association awards with a Certificate of Merit in the category “Social Media Campaign Directed at the General Public”.
Livestock Emergency and Farm Fire Awareness Projects FFCO’s Livestock Emergency Training
Bill 156 Bill 156, Security from Trespass and Protecting Food Safety Act, 2020,
ENVIRONMENT INITIATIVES
was a key area of interest for the
Timing Matters and Peer to Peer
agricultural community in 2020. FFCO
Timing Matters is a coalition of
worked alongside livestock commodity groups and general farm organizations to interpret and comment on the new regulations. In 2021, FFCO will support the development of “Animal Protection Zone” signage for distribution to livestock farms across the province.
Farm Animal Care Helpline
course was offered virtually in 2020. It
The Farm Animal Care Helpline is
is designed to give first responders a
a confidential service that allows
better understanding of animal behavior
concerned farmers and community
and management during livestock
members to report situations where they
emergencies, such as truck rollovers.
feel farm animals require better care,
60 first responders from across Ontario,
or where farmers themselves can call
plus veterinarians and other livestock
should they require help. FFCO received
stakeholders, were trained throughout
11 calls in 2020 and worked with farmers,
four online workshops. FFCO filmed
experienced staff and commodity groups
two instructional videos detailing
to investigate reports. The helpline is
the mechanics of livestock trailers
operated in partnership with all major
and proper extrication techniques to
commodity organizations, including BFO.
farm organizations, including BFO, focused on promoting good manure management and planning. A multimedia communications strategy was launched in 2020, which included the development of seven infographics, video animation, published articles and a growing social media presence. A subgroup, the Peer-to-Peer Network, focuses on raising awareness about the impact of nutrient run-off when manure is applied to frozen fields. Peer to Peer will continue to help identify practical alternatives to spreading manure on frozen or snow-covered ground in an effort to use nutrients more effectively and reduce the environmental risks to water bodies.
supplement the course.
BFO ANNUAL REPORT 2021
61
LIVESTOCK RESEARCH INNOVATION CORPORATION Research and innovation are key to the
This year we restructured our International
commercialization and extension) and
success of any business or sector like
Research Advisory Committee with a new
making recommendations for Ontario to
Ontario’s beef industry. The Livestock
mandate and virtually all new members.
consider so that we get the best return on
Research Innovation Corporation (LRIC)
Members now include:
our investments.
• Stan Blade – Dean, Faculty of
The founding members of LRIC (BFO,
was founded as a service organization to help members better manage research and to advance innovations that help the livestock sector be competitive. LRIC remains committed to delivering good value for membership fees. Our membership continues to grow, and this past year we welcomed Meat and Poultry Ontario and Trouw Nutrition as Partner members. We also welcomed three new directors to our board, one of whom, Jean Szkotnicki, will be very familiar to the beef industry, as she once served as OCA Assistant Manager and recently retired from the Canadian Animal Health Institute. Dairy Farmers of Ontario (DFO) also decided to return to the fold as
Agricultural Life and Environmental Sciences, University of Alberta, also Director on Results Driven Agricultural Research Board • Paul Dick – President, PDA Ltd. • Brian Lindsay – Managing Director, Lindsay Consulting (UK) • Steve Miller – Deputy Director, Animal Breeding and Genetics Unit (Australia) • Roberto Soares – Ceva Animal Health International
DFO, Ontario Pork and the poultry organizations) now meet regularly to share good ideas and deal with issues that affect all sectors. One such issue is funding to make best use of the new research facilities at Elora. The current funding agreement between OMAFRA and the University of Guelph comes due March 2023, and everyone involved must work together to ensure that funds are available to conduct research of importance to industry. There have been great strides made in the past few years in facilities and
founding members of LRIC, which provides
This group will be examining the key
faculty, now we need to safeguard the
Ontario livestock producers with a much
elements of an innovation system
operating funding needed to get the best
more unified voice with respect to research.
(funding, priorities, program management,
use out of this investment.
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BFO ANNUAL REPORT 2021
BFO Past President, Joe Hill, answering questions from University of Guelph faculty on his farm.
Membership Program
Livestock Innovation that has a growing
about an exemption of a portion of the
Our mentorship program has been very
report, and also have an active Twitter
research station access fees for those
successful, now with nine participants.
account. Also, to bring timely topics to
livestock organizations that put up their
This unique program is aimed at early-
the forefront, we have initiated a series
share of funds for new research facilities,
stage faculty with current members from
of white papers that will involve noted
BFO included. OMAFRA agreed that this
agricultural, veterinary and engineering
contributing editors. The first paper
exemption would be continued through to
colleges at the University of Guelph. By
deals with regenerative agriculture with
the end of the current Alliance agreement.
building better connections with industry and
Rene Van Acker, Dean of the Ontario
This will save BFO several thousands of
across different academic programs early
Agricultural College, as editor. Watch
dollars in the coming years.
in their career, participants will have more
our website (www.livestockresearch.
robust research programs closely linked to
ca) for future papers on livestock and
industry needs and expand their connections
greenhouse gas, antimicrobial use in
to effectively get results out to those who can
livestock, genomics, one health, etc. For
use them. We plan on starting the second
many of these topics, we will be hosting
group in the spring of 2021.
a webinar with a brief presentation and a
Working with the founding members, LRIC led discussions with OMAFRA
This year’s annual call for Alliance research proposals saw 33 proposals, all of which were reviewed by LRIC along with industry reviewers that we organized. While the number of proposals by sector fluctuates across years, it was noted that there was
We continue to place a big emphasis on
only one beef proposal this year.
communications with our members and their producers. We write articles that appear in Ontario Beef and other producer
subscription list, and a quarterly members
chance to ask questions about the topic that will affect your farm and family into the future. LRIC is pleased to be working with Beef
magazines, opinion articles/editorials for
Farmers of Ontario to advance research
Farmtario, a monthly newsletter called
initiatives and drive innovation in the sector.
BFO ANNUAL REPORT 2021
63
ONTARIO CATTLE FEEDERS’ ASSOCIATION The Ontario Corn Fed Beef (OCFB) program
to OCFB, and we’re really promoting our
has built a strong partnership with Beef
story with the consumers through the
Farmers Ontario (BFO), which has been
recognizable brand logo.
crucial to the success and growth of the OCFB brand. Our relationship’s strength was more important than ever this past year as our organizations worked closely together to respond to the challenges of the COVID-19 pandemic and processing capacity issues in Ontario. Throughout the pandemic, we remained focused on our core business of building the OCFB brand and bringing value to the Ontario beef sector. From my perspective, the real importance of brand marketing is evident in these times of crisis. Along with our relationship with BFO, the
what we have to offer here in Ontario. Our promotional efforts received a significant boost in December. We were
We have used much of this philosophy in
excited to announce that the OCFB
the building of the Ontario Beef Market
Quality Assurance program became an
Development Program. We’re working with
approved certifying body for the Canadian
industry partners to develop more brands
Roundtable for Sustainable Beef’s (CRSB)
with unique attributes that provide more
Certified Sustainable Beef Framework.
opportunities for Ontario producers who
This approval is an important milestone for
may or may not be already with a program.
our industry because the market demand
It’s part of a drive toward local and “where
for beef raised according to sustainability
food comes from” that I believe COVID-19
standards, as set by the CRSB, continues
has entrenched in the consumer’s mind. It’s
to increase. At this time, demand exceeds
an opportunity to provide further sustainable
the available supply. And with the recent
growth for producers and processors in
certification of the Cargill Guelph facility
Ontario. But, again, the growth is driven by a
to process cattle originating from CRSB-
mix of export and domestic markets.
certified farms and ranches, the Ontario cattle and beef industry is well-positioned
other partnerships we have formed are
This year, we were pleased to be involved
incredibly critical. At the early stages of our
in the “Ontario Made” program. This new
development, members of the Ontario Cattle
program from the Canadian Manufacturers
Feeders’ Association (OCFA) realized that
and Exporters promotes the world-class
we needed to move beyond commodity
goods that are made across the province
production. We needed to have uniqueness
by helping consumers easily identify,
CRSB certification is an excellent way for
and differentiation in our beef products to
access and purchase local products.
Ontario farmers to share their sustainability
gain the foothold in foreign markets that
You’ll see the Ontario Made logo on the
story. Consumers are increasingly
we now enjoy. And we continue to expand
promotional materials for Loblaw stores,
interested in how their food is produced
the OCFB program, even during this crisis
along with the Canada Beef logo. It’s part
and seek more information than ever before
period. We’re bringing on new customers
of the entire push to recognize and capture
about the practices used to raise beef in
64
BFO ANNUAL REPORT 2021
to meet this increasing market demand. Our retail and foodservice partners have also been very clear in their desire to source certified and sustainable beef in Ontario.
Canada. From land and water stewardship
frequently. The changes made are also
to supporting local communities, and from
essential to provide the key support our
animal care to innovations that improve
processing partners need when it comes
efficiency and productivity, certification
to their marketing strategies and quality
provides producers with recognition for the
assurance from the farm gate forward.
sustainable practices they already employ
Ensuring the program continues to provide
on Canadian beef farms and ranches.
all the technical requirements our packer
Retail and foodservice companies want to
partners require is essential. As markets’ and
satisfy consumer demand for responsibly
individual customers’ requirements around
raised products by sourcing beef that
documentation and verification of processes
has been verified as raised according to
increase, our program must continue to
sustainability standards, and to tell the story
evolve to meet those demands and ensure
of sustainability to their customers.
our member feedlots are not overburdened
frontline healthcare workers, are top of mind. In closing, I would like to thank everybody in the entire agricultural sector who has partnered with us and supported us and our program. I’m so fortunate to be in a position where I have the opportunity to lead and be part of the growth of the OCFB brand. It’s rewarding to see the various pieces fit together and see the positive results. It would not be possible without the backing we receive from the industry. I want to express my thanks for the support we have
with unnecessary and inefficient processes.
received from the Beef Farmers of Ontario,
blueprint for the OCFB program. From the
At this time, we continue to conduct our
Farmers of Ontario.
beginning, we set a goal to demonstrate
day-to-day operations under the COVID-19
robust program leadership when it comes
protocols as advised by the public health
to on-farm quality assurance as it relates
authorities. We’re very cautious as we
to the brand, the producers, the processor
maintain our business structure through
partners, through retailers and right to
this whole process. Our concerns about
the consumers who buy our branded
the effects of the coronavirus go well
beef products to serve their families. As
beyond the impact on the beef industry.
story in Canada. I’m looking forward to the
part of our commitment to quality and
Through our partnerships in foodservice,
future, knowing that we have accomplished
continuous improvement to our “Good
we deal with many restaurants and privately
a lot of great work together and that there
Production Practices” and record-keeping
owned businesses, including all the food
is more to come in the years ahead.
requirements, we have revised the OCFB
and agriculture-related supply companies
Quality Assurance Program Manual.
that have been affected. The challenges
Changes to the manual are reviewed
they’re experiencing, along with those of our
This recent milestone builds on our
the Government of Ontario and the Grain
We have something in Ontario that we need to continue to focus on. We have strong partnerships, passionate and resilient producers, an industry-leading quality assurance program and the best beef brand
Jim Clark Executive Director, Ontario Cattle Feeders’ Association and Ontario Corn Fed Beef Program
BFO ANNUAL REPORT 2021
65
LIVESTOCK FINANCIAL PROTECTION BOARD (FUND FOR LIVESTOCK PRODUCERS) FINANCIAL POSITION OF FUND BALANCE
REVENUE March 31
Deduction Income (Fees)
Investment Income
EXPENSE March 31
Total
Claims Paid Less Recoveries
Fund Expenses Total Expenses
1982-90
$ 4,193,421
$ 1,840,250
$ 6,033,670
1982-90
$ 1,144,988
$ 230,190
$ 1,375,178
1990-91
122,045
550,719
672,764
1990-91
1,062,592
26,468
1,089,060
1991-92
122,690
516,580
639,270
1991-92
(4,128)
28,141
24,013
1992-93
129,619
359,584
489,203
1992-93
297,706
26,318
324,024
1993-94
118,522
320,641
439,164
1993-94
0
16,531
16,531
1994-95
117,214
272,497
389,711
1994-95
631,307
25,276
656,583
1995-96
116,336
395,416
511,751
1995-96
(140,770)
39,655
(101,115)
1996-97
122,363
280,360
402,723
1996-97
84,964
55,604
140,568
1997-98
129,849
285,801
415,650
1997-98
1,040
12,874
13,915
1998-99
119,662
330,511
450,173
1998-99
135,420
51,087
186,507
1999-2000
117,271
291,267
408,537
1999-2000
7,534
74,151
81,685
2000-2001
117,586
461,611
579,197
2000-2001
2,086,337
79,302
2,165,639
2001-2002
104,694
210,047
314,741
2001-2002
678,357
192,367
870,724
2002-2003
116,558
196,465
313,023
2002-2003
(39,760)
63,465
23,705
2003-2004
100,233
186,020
286,253
2003-2004
131,342
66,473
197,815
2004-2005
106,275
170,477
276,752
2004-2005
247,787
69,989
317,776
2005-2006
115,188
222,225
337,413
2005-2006
0
64,248
64,248
2006-2007
103,033
254,962
357,995
2006-2007
(350,000)
62,535
(287,465)
2007-2008
102,652
296,185
398,837
2007-2008
0
69,859
69,859
2008-2009
113,422
265,844
379,267
2008-2009
0
67,631
67,631
2009-2010
100,248
262,957
363,205
2009-2010
(31,044)
87,295
56,251
2010-2011
109,882
264,454
374,336
2010-2011
235,110
148,360
716,338
2011-2012
105,346
269,320
374,666
2011-2012
69,371
116,571
402,483
2012-2013
106,068
244,642
350,710
2012-2013
657,227
127,766
784,993
2013-2014
112,525
245,792
358,316
2013-2014
(290,926)
179,348
(111,578)
2014-2015
110,083
254,063
364,146
2014-2015
164,452
179,770
344,222 614,660
2015-2016
109,267
241,410
350,677
2015-2016
387,136
227,524
2016-2017
204,805
237,478
442,283
2016-2017
0
196,733
196,733
2017-2018
199,631
246,024
445,655
2017-2018
0
203,168
203,168
2018-2019
206,302
261,664
467,966
2018-2019
2019-2020*
203,297
287,849
491,146
2019-2020*
0
174,119
174,119
13,768
117,578
131,346
*These are currently unaudited financials as the audit is in progress
Fund Balance at March 31st, 2020 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
$496,350 $1,559,367 $2,111,466 $2,803,336 $3,470,057 $3,629,155 $4,353,020 $4,683,492 $4,267,196 $4,882,453 $5,047,632 $5,470,264 $5,203,392
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
$5,816,257 $6,078,412 $6,480,147 $6,743,918 $7,070,770 $5,484,329 $4,928,346 $5,218,720 $5,306,236 $5,265,078 $5,538,243 $6,183,703 $6,512,681
*This is currently based on unaudited financial statements.
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BFO ANNUAL REPORT 2021
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$6,824,578 $7,131,542 $7,122,407 $7,311,131 $6,876,848 $7,347,626 $7,063,727 $7,103,567 $ 7,349,117 $ 7,591,604 $ 7,885,451 $ 8,245,252 *
Note: 1) Total income in 1982-83 includes a $25,000 startup grant from OMAFRA. 2) Deductions to the Fund were lowered from $0.20/head to $0.10/head in 1984. Deductions were lowered from $0.10/head to $0.05/head in April 1989 for sellers and agents and eliminated for buyers. Deductions were increased from $0.05/ head to $0.10/head in 2016. 3) Fund expenses include the board and expenses for determining financial responsibility.
FINANCIALS 2020 Audited Financial Statements For the year ended December 31, 2020
2021 Preliminary Budget
BFO ANNUAL REPORT 2021
67
BEEF FARMERS OF ONTARIO INDEX TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020 Page INDEPENDENT AUDITOR'S REPORT
3-4
FINANCIAL STATEMENTS Statement of Financial Position
5
Statement of Changes in Net Assets
6
Statement of Operations
7
Statement of Cash Flows
8
Notes to the Financial Statements Schedule of Expenses
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BFO ANNUAL REPORT 2021
9 - 13 14
INDEPENDENT AUDITOR'S REPORT To the Board of Directors of: Beef Farmers of Ontario Opinion We have audited the accompanying financial statements of Beef Farmers of Ontario, which comprise the statement of financial position as at December 31, 2020 and the statements of changes in net assets, operations and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, these financial statements present fairly, in all material respects, the financial position of Beef Farmers of Ontario as at December 31, 2020 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not for profit organizations. Basis of Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Beef Farmers of Ontario in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not for profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the organization's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the organization or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the organization's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Page 3
BFO ANNUAL REPORT 2021
69
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the organization’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the organization to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Guelph, Ontario February 16, 2021
Chartered Professional Accountants Licensed Public Accountants
Page 4
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BFO ANNUAL REPORT 2021
BEEF FARMERS OF ONTARIO STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2020 2020 CURRENT ASSETS Cash Accounts and grants receivable Accrued checkoff fees receivable Investments (note 4) Inventory - supplies Inventory - livestock (note 11) Prepaid expenses
2019
ASSETS $ 1,710,705 64,733 535,195 2,750,696 29,377 36,000 32,375 5,159,081
CAPITAL ASSETS (note 5)
$
931,747 277,941 520,819 2,159,388 22,451 34,263 52,293 3,998,902
274,306
277,432
$ 5,433,387
$ 4,276,334
$
$
LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities Accrued national checkoff payments payable Deferred revenue (note 6) Research trust liability - New Liskeard (note 11) Government remittances payable
377,559 48,654 500 176,502 48,688 651,903
411,890 49,218 5,710 184,241 12,887 663,946
NET ASSETS NET ASSETS Internally restricted building repair fund (note 2g) Internally restricted research and projects fund (note 2g) Internally restricted trade action fund (note 2g) Externally restricted marketing fund (note 2g) Unrestricted
94,559 449,189 200,000 328,673 3,709,063 4,781,484
94,559 756,679 0 0 2,761,150 3,612,388
$ 5,433,387
$ 4,276,334
See notes to the financial statements Page 5
BFO ANNUAL REPORT 2021
71
BEEF FARMERS OF ONTARIO STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2020 INTERNALLY INTERNALLY INTERNALLY RESTRICTED RESTRICTED RESTRICTED BUILDING RESEARCH TRADE REPAIR AND PROJECTS ACTION FUND FUND FUND
EXTERNALLY RESTRICTED MARKETING FUND UNRESTRICTED
$
$
(note 2g)
BALANCE, beginning of year
(note 2g)
94,559
Surplus of income over expenses
0
Transfers (note 14)
0
BALANCE, end of year
$
94,559
$
(note 2g)
756,679
$
0 (307,490) $
449,189
$
0
(note 2g)
2020
2019
0
$ 2,761,150
$ 3,612,388
$ 3,200,517
0
0
1,169,096
1,169,096
411,871
200,000
328,673
0
0
$ 4,781,484
$ 3,612,388
200,000
$
328,673
See notes to the financial statements
(221,183) $ 3,709,063
Page 6
See notes to the financial statements Page 6
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BFO ANNUAL REPORT 2021
BEEF FARMERS OF ONTARIO STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020
INCOME Fees Less: Commissions to firms making deduction 7 day dealer refund Investment income Magazine revenue Other income Toronto Stockyards Land Development Board (note 12) Grants (note 13)
2020 BUDGET (note 7)
2020 ACTUAL
2019 ACTUAL
$ 4,965,000 (50,000) (245,000) 4,670,000 70,000 80,000 18,500 4,838,500
$ 5,213,362 (38,051) (254,633) 4,920,678 99,939 80,640 36,657 5,137,914
$ 4,196,893 (42,933) (220,023) 3,933,937 115,062 71,914 31,613 4,152,526
EXPENSES Association activities - budgeted (schedule 1) Operations budgeted (schedule 1) SURPLUS OF INCOME OVER EXPENSES for the year
$
1,152,000 0 5,990,500
1,176,929 120,917 6,435,760
1,128,989 111,113 5,392,628
4,284,100 1,703,000 5,987,100
3,849,483 1,417,181 5,266,664
3,207,810 1,772,947 4,980,757
3,400
$ 1,169,096
$
411,871
See notes to the financial statements Page 7
BFO ANNUAL REPORT 2021
73
BEEF FARMERS OF ONTARIO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2020 2020 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Surplus of income over expenses for the year Items not requiring an outlay of cash Amortization
$ 1,169,096
2019 $
411,871
18,448 1,187,544
17,645 429,516
213,208 (14,376) (6,926) (1,737) 19,918 (34,331) (564) (5,210) (7,739) 35,801 198,044 1,385,588
(132,197) (16,758) 3,026 2,211 (989) (1,658) (13,790) (5,245) 23,858 (13,521) (155,063) 274,453
(15,322) (591,308) (606,630)
(12,547) (103,405) (115,952)
NET INCREASE IN CASH
778,958
158,501
NET CASH, beginning of year
931,747
773,246
Changes in non-cash working capital Accounts and grants receivable Accrued checkoff fees receivable Inventory - supplies Inventory - livestock Prepaid expenses Accounts payable and accrued liabilities Accrued national checkoff payments Deferred revenue Research trust liability - New Liskeard Government remittances payable
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES Additions to capital assets Investments
NET CASH, end of year
$ 1,710,705
$
931,747
See notes to the financial statements Page 8
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BFO ANNUAL REPORT 2021
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
1.
PURPOSE OF THE ORGANIZATION Beef Farmers of Ontario is a tax exempt body established by Provincial legislation to support the beef cattle industry in Ontario through promotion, research and other activities.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The organization is subject to the Ontario Business Corporations Act. The financial statements have been prepared in accordance with Canadian accounting standards for not for profit organizations and include the following significant accounting policies: (a)
REVENUE RECOGNITION The organization follows the restricted fund method of accounting for contributions in which externally restricted contributions are recognized upon receipt in the appropriate fund corresponding to the purpose for which they were contributed. Externally restricted contributions of the unrestricted fund are recognized as revenue when the related expenditure occurs. Unrestricted revenues are recognized in the unrestricted fund when received or receivable and collection is reasonably assured.
(b)
INVENTORY Inventory is stated at the lower of cost, using the weighted average cost basis, and net realizable value.
(c)
CAPITAL ASSETS Capital assets are recorded at cost and amortized on the basis of their estimated useful life using the following methods and rates: Building and building renovations Office furniture and equipment Computer equipment Computer software
(d)
- 4% declining balance - 20% declining balance - 30% declining balance - 50% declining balance
IMPAIRMENT OF LONG LIVED ASSETS Long lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized when the carrying value exceeds the total undiscounted cash flows expected from their use and eventual disposition. The amount of the impairment loss is determined as the excess of the carrying value of the asset over its fair value.
(e)
USE OF ESTIMATES The preparation of financial statements in conformity with Canadian accounting standards for not for profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The significant areas where estimates have been used are the accrued checkoff fees receivable, amortization and accrued national checkoff payments payable. Actual results could differ from those estimates. Page 9
BFO ANNUAL REPORT 2021
Page 9
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BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (f)
FINANCIAL INSTRUMENTS Measurement of financial instruments The organization initially measures its financial assets and liabilities at fair value. The organization subsequently measures all its financial assets and financial liabilities at amortized cost, except for its investments, which are measured at fair value. Changes in fair value are recognized in net surplus. Impairment Financial assets measured at amortized cost are tested for impairment when there are indicators of impairment. If an impairment has occurred, the carrying amount of financial assets measured at amortized cost is reduced to the greater of the discounted future cash flows expected or the proceeds that could be realized from the sale of the financial asset. The amount of the write-down is recognized in net surplus. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net surplus. Transaction costs The organization recognizes its transaction costs in net income in the period incurred. However, financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or assumption.
(g)
FUND ACCOUNTING Internally restricted building repair fund The internally restricted building repair fund reports resources available for the organization's building repair activities. Internally restricted research and projects fund The internally restricted research and projects fund reports resources allocated by the organization for research and project commitments in future years. Internally restricted trade action fund The internally restricted trade action fund is used to fund trade or market access disputes and related projects. This fund shall maintain a minimum balance of $200,000 with an upper balance limit of $500,000. Up to 10% of any year end surplus may be transferred into this restricted fund provided the upper balance limit has not been exceeded. Externally restricted marketing fund The externally restricted marketing fund reports resources allocated to the Ontario Beef Market Development (OBMD) program. The OBMD is a jointly administered marketing program led by a Joint Marketing Committee (JMC) under a formal agreement between the organization and the Ontario Cattle Feeders’ Association (OCFA) to collaborate on sustaining and building growth in the Ontario beef sector through domestic and international promotional and marketing initiatives. Any budgeted funds that have not been used at the end of a budget year are transferred into this fund for future program use at the discretion of the JMC.
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BFO ANNUAL REPORT 2021
Page 10
Page 10
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (g)
FUND ACCOUNTING (continued) Unrestricted fund The unrestricted fund reports resources available for the organization's general operating activities.
3.
FINANCIAL INSTRUMENTS Unless otherwise noted, it is management's opinion that the organization is not exposed to significant interest, currency or credit risks arising from the financial instruments. The extent of the organization's exposure to these risks did not change in 2020 compared to the previous period. The organization does not have a significant exposure to any individual customer or counterpart.
4.
INVESTMENTS Investments consist of a combination of income and exchange-traded funds, as well as cash temporarily held in the investment trading account. 2020 2019 Beginning balance Transfers into an investment account Realized gains in the year Broker fees Unrealized gain on adjustment to market value
5.
CAPITAL ASSETS Cost Land Building Building renovations Office furniture and equipment Computer equipment Computer software
$ 2,159,388 500,000 75,494 (11,385) 27,199
$ 2,055,983 0 71,960 (11,466) 42,911
$ 2,750,696
$ 2,159,388
Net 2020
Net 2019
Accumulated Amortization
$
94,000 210,317 204,515 130,091 220,137 48,442
$
0 140,461 130,997 123,904 192,465 45,369
$
94,000 69,856 73,518 6,187 27,672 3,073
$
94,000 72,767 76,581 7,171 24,789 2,124
$
907,502
$
633,196
$
274,306
$
277,432
Page 11
BFO ANNUAL REPORT 2021
Page 11
77
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
6.
DEFERRED REVENUE Deferred revenue consists of sponsorships and trade show space related to the annual meeting: 2020
7.
2019
Beginning balance Less: amount recognized in the year Add: amount received relating to the following year
$
5,710 $ (5,210) 0
10,955 (10,455) 5,210
Ending balance
$
500
5,710
$
BUDGET FIGURES The budgeted figures are presented for comparison purposes as prepared and approved by the Board, reclassified to conform to the current financial statement presentation. They have not been audited or reviewed by the auditor.
8.
NATIONAL CHECKOFF AGENCY The organization pays $1 per head to the National Beef Cattle Research Market Development and Promotion Agency and for the National Beef Advertising and Promotion Campaign, and subsequently receives 50 cents per head (less administration) for association activities which are aligned with the national proclamation.
9.
FEEDER FINANCE PROGRAM The organization has embarked on a joint program with the Ontario Ministry of Agriculture, Food and Rural Affairs, the purpose of which is to guarantee a portion of loans to feeder cattle finance co-operatives to purchase cattle. The expenses are not to exceed $55,000 in the provincial government's fiscal year and are fully recoverable from the Ministry.
10.
COMMITMENTS The organization has committed to fund future research projects in the amount of $225,583 in 2021, $126,038 in 2022, and $97,568 in 2023, totalling $449,189.
11.
NEW LISKEARD RESEARCH HERD During 1994, the organization entered into an agreement with the Ontario Ministry of Agriculture, Food and Rural Affairs in which the organization agreed to purchase the beef cattle research herd in New Liskeard. The purchase took place over a period of years during which the organization paid for the annual crop of calves born and continues to receive the proceeds from sale of these animals. Any excess proceeds over time must be used for beef research.
12.
TORONTO STOCKYARDS LAND DEVELOPMENT BOARD The former Toronto stockyards land has been developed as a commercial rental property by the Toronto Stockyards Land Development Board. The organization receives a contribution from this organization. Page 12
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BFO ANNUAL REPORT 2021
Page 12
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
13.
GRANT REVENUE Grant revenue relates to the following programs: National Feedlot Surveillance Program Feeder Finance Program (note 9) Trade Mission - South Korea and Japan project Export Market Diversification project Risk Management Projector project Youth Employment and Skills Program Environmental Value of Ontario Beef Production Truck Rollover Response project
14.
2020
2019
$
44,713 43,521 8,578 7,132 6,563 5,791 4,619 0
$
10,000 48,187 0 0 0 0 49,947 2,979
$
120,917
$
111,113
INTERFUND TRANSFER During the year, the organization transferred $200,000 (2019 - $0) to the internally restricted trade action fund and $328,673 (2019 - 0) to the externally restricted marketing fund from the unrestricted fund. In addition, the organization transferred $307,490 from the internally restricted research and projects fund to the unrestricted fund (2019 - transferred $368,585 to the internally restricted from the unrestricted fund). The closing balance in the internally restricted research and projects fund of $449,189 is for beef cattle research commitments in future years.
15.
MATERIAL UNCERTAINTY DUE TO THE NOVEL CORONAVIRUS (COVID-19) During the year and subsequent to year end, the Novel Coronavirus (COVID-19) significantly impacted the economy in Canada and globally. Although the disruption from the virus is expected to be temporary, given the dynamic nature of these circumstances, the duration of business disruption and the related financial impact cannot be reasonably estimated at this time. This may impact the timing and amounts realized on the organization's assets and its future ability to deliver all services.
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BFO ANNUAL REPORT 2021
79
BEEF FARMERS OF ONTARIO SCHEDULE OF EXPENSES
Schedule 1
FOR THE YEAR ENDED DECEMBER 31, 2020 2020 BUDGET (note 7) ASSOCIATION ACTIVITIES - BUDGETED Annual meeting (net of revenue $54,559 - 2020, $55,425 - 2019) Grants and memberships - Canadian Cattlemen's Association - National checkoff (note 8) - Counties - Industry sponsorships and other grants - Farm & Food Care Ontario - Feed Ontario (food banks) Communications - Consumer engagement - Ontario Beef magazine - Producer engagement - Other (net of revenue $56 - 2020, $2,407 2019) License fee enforcement Lobbying Breeder finance support Industry, market development and research OCFA support for marketing corn-fed beef Feedlot/Cow-calf Committee (net of revenue $0 - 2020, $18,775 - 2019)
OPERATIONS - BUDGETED Elected officers' remuneration Elected officers' expenses Salaries and benefits Staff expenses Postage Premises costs Office Telephone and fax Legal Audit Amortization
$
205,000
2020 ACTUAL
$
214,894
2019 ACTUAL
$
202,658
474,000 460,600 210,000 128,740 28,760 20,000
498,710 448,688 165,574 92,033 27,650 30,000
492,267 467,950 206,327 100,618 30,000 20,000
270,000 160,000 75,000
268,044 151,821 18,821
287,967 150,708 45,229
52,000 115,000 160,000 0 1,475,000 450,000
36,407 92,708 145,536 3,900 1,226,156 428,166
64,555 133,470 132,895 3,593 421,701 451,629
0
375
$ 4,284,100
$ 3,849,483
$ 3,207,810
$
$
$
190,000 190,000 1,056,000 60,000 14,000 65,000 58,000 28,000 10,000 16,000 16,000
$ 1,703,000
150,883 77,643 929,375 30,172 10,885 67,889 70,559 23,857 22,410 15,060 18,448
$ 1,417,181
(3,757)
201,999 224,147 1,048,799 67,032 11,157 76,540 82,061 26,603 2,398 14,566 17,645
$ 1,772,947
See notes to the financial statements Page 14
80
BFO ANNUAL REPORT 2021
2021 PRELIMINARY BUDGET INCOME
2021 BUDGET
Check-off Income License Fees (Gross) - Estimated 903,000 marketings
$4,966,500
Less: Other Provinces’ License Fees
205,000
CCA Membership Fee
475,000
CCA Legal Assessment
30,000
National Check-off
903,000
Returned to Ontario
433,000
Commissions Seven Day Dealer Refund NET CHECK-OFF INCOME
45,000 245,000 $3,496,500
Other Income Toronto Stockyards Land and Development Board
1,185,000
Interest & Investments
$90,000
Lease Revenue
18,000
Brand Registration
500
SUBTOTAL
$1,293,500
TOTAL NET INCOME
$4,790,000
EXPENSES Administrative & General Elected Officers Remuneration Elected Officers Expenses Net Salaries and Benefits Staff Expenses Staff Training & Professional Development Postage & Courier
$190,000 100,000 1,068,000 50,000 7,000 10,000
Building & Office Maintenance
70,000
Office Supplies & Equipment Rentals
52,000
Telephone, Internet & Fax
22,000
Legal
20,000
Insurance
41,000
Audit & Accounting Services
16,000
Amortization
16,000
SUBTOTAL
$1,662,000
BFO ANNUAL REPORT 2021
81
Association Activities
2021 BUDGET
Memberships
$95,000
Sponsorships
65,000
County & District Grant and Sharecost Programs
130,000
Ontario Beef Magazine (Net) Tradeshows Annual Meeting and Voting Delegates Communications
80,000 7,500 80,000 43,000
Lobbying & Advocacy
170,000
Check-off Enforcement
110,000
SUBTOTAL ASSOC. ACTIVITIES
$780,500
Industry Expenses Ontario Beef Market Development Program Producer Engagement Activities Consumer Engagement Activities
82
75,000 300,000
Industry Development Projects & Activities
270,000
Research Projects
200,000
Ontario Corn-Fed Beef Support
430,000
SUBTOTAL INDUSTRY EXPENSES
$2,347,500
TOTAL NET EXPENSES
$4,790,000
GAIN /LOSS ON OPERATIONS
$1,072,500
BFO ANNUAL REPORT 2021
$ 0.00
NOTES
BFO ANNUAL REPORT 2021
83
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1.866.370.2333
84
BFO ANNUAL REPORT 2021
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