TAKING CARE OF BUSINESS ANNUAL REPORT 2022 BFO ANNUAL REPORT 2022
1
WHO WE ARE The Beef Farmers of Ontario (BFO) represents 19,000 beef farmers in Ontario by advocating in the areas of sustainability, animal health and care, environment, food safety, and domestic and export market development. BFO’s vision is to help foster a sustainable and profitable beef industry, and have Ontario beef recognized as an outstanding product by our consumers.
2
BFO ANNUAL REPORT 2022
TABLE OF CONTENTS Message from the President............................................................................................................................... 4 Message du Président.......................................................................................................................................... 6 BFO Past Presidents ............................................................................................................................................ 8 2021 Board of Directors ..................................................................................................................................... 9 Message from the Executive Director.............................................................................................................10 BFO’s Commitment to 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 Co-operative 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 2022 Preliminary Budget....................................................................................................................................81
BFO ANNUAL REPORT 2022
3
A MESSAGE FROM THE PRESIDENT
Rob Lipsett BFO PRESIDENT
Never in my wildest dreams, when I threw my hat into the ring to vie as president in February of 2020, did I expect to be faced with the closing and reopening of a federal packing plant, a global pandemic and having to navigate a virtual world like we’ve never experienced before. It’s been a wild ride to say the least, but I am very proud of my fellow directors and our staff for adapting and managing to do our very best to serve the needs of our members. During my time as president, we’ve
much needed programming and funding
to 129 livestock producers in the Rainy
worked hard to maintain Ontario’s Risk
support. I’ve sincerely appreciated our
River and Kenora Districts. The BFO
Management Program and advocate
candid conversations, her commitment to
Board of Directors is extremely grateful
for improvements to all business risk
the agriculture sector, and her empathy
to those who contributed money, feed,
management programming; fought for
and support for our farmers and agri-
transportation, and their valuable time to
solutions to address our processing
food workers. We were also happy
help us execute this meaningful initiative in
capacity shortage; created a cattle “set-
to see The Honourable Marie-Claude
an efficient manner.
aside program” as a temporary measure
Bibeau reappointed as federal Minister
to support cattle feeders who were
of Agriculture and Agri-Food in October.
The need to increase processing
impacted by COVID-19 outbreaks at
Both BFO and the Canadian Cattlemen’s
processing plants; helped our members in
Association (CCA) have established
northwestern Ontario who were severely
a good working relationship with her
impacted by drought conditions; forged
and her office, and we look forward to
ahead in increasing demand for Ontario
progressing a number of key files with the
beef by building momentum with our
Minister including BRM reform, the carbon
consumer engagement and market
credit system, boxed beef price reporting,
development work; developed a forum for
harmonizing our SRM policies with the
youth involvement within our association;
U.S., and others.
created the beginnings of a more inclusive environment for those within and outside of our industry; and set the tone for more open conversations about mental health in the agriculture sector. From my perspective, with all things considered, we’ve done an exceptional job of taking care of business on behalf of our industry.
for BFO for some time, which was also evident through a number of resolutions carried at last year’s AGM. We share our membership’s concerns regarding processing backlogs, labour shortages, lost market opportunities, and depressed returns to producers resulting largely from the current processing availability, or lack thereof. As we continue to pursue solutions
Ontario farmers in 2021 was dry conditions,
to help address these shortfalls, we also
particularly in northwestern Ontario. BFO
encourage our members to speak with
appreciated the funding announced in
their local elected members of parliament
late July by the Government of Ontario
and provincial parliament to help keep the
to assist with emergency measures for
need for solutions top of mind.
feed, water and livestock care to those
The silver lining of 2021 was the long-
experiencing drought conditions in this region. Through this funding, BFO
Agriculture, Food and Rural Affairs, Lisa
administered the Northwestern Livestock
Thompson, has been a real champion
Emergency Assistance Initiative and
for the beef sector and has delivered on
delivered over 5.8 million pounds of hay
BFO ANNUAL REPORT 2022
and federal plants, has been a key focus
One of the biggest challenges facing
On the political front, Ontario’s Minister of
4
capacity in Ontario, at both provincial
awaited change to Canada’s BSE risk status announced in May. Our change from controlled risk to negligible risk was a historic closure of the BSE chapter for Canada. On behalf of our members, we
sincerely appreciate the leadership of CCA
food-animal veterinarians in Ontario. In 2021,
for Ontario’s beef industry. While this group
on this achievement which will enable the
to help build a strong pipeline of veterinary
is just getting established, I’m encouraged
beef industry to explore new market access
leaders, we approved the establishment of
by the initial uptake and I look forward to
opportunities.
two scholarships with the Ontario Veterinary
their added contribution and perspective.
One issue that continues to be a hot topic
College at the University of Guelph that will
of discussion throughout the countryside
support students pursuing a career in large
Regarding our market development work, together with the Ontario Cattle Feeders’
is the revised transportation regulations.
animal health and welfare.
Livestock groups, including BFO and CCA,
In the area of consumer engagement,
initial four-year strategy which is funded
lobbied aggressively throughout much
we continued to build on the momentum
through provincial check-off. Our marketing
of 2019 for amendments to the proposed
generated in 2020. We ran two campaigns
strategy continues to focus on four key
reduction of the maximum time off feed,
in 2021, piloted podcast advertising,
objectives to enhance the competitiveness
water, and rest (FWR) from the current 48
and continued to develop new creative
of the Ontario beef industry and provide
hours to 36 hours. Despite our efforts,
assets for use within various components
direct benefits to Ontario beef farmers.
a two-year transition period of non-
of our strategy. We are grateful to have
Work continued in 2021 despite the
enforcement was put in place set to expire
completed in partnership with AgScape
challenges of the pandemic and its
February 20, 2022.
the development of three curriculum-linked
impact on travel and execution of events
Since the time of the announced delay
resources for use in classrooms. The lesson
and programs. There are currently 38
plans, launched in the fall of 2021, are
projects underway in various stages of
geared to grades 7-12 and cover topics such
implementation in a variety of sectors from
as environment, human nutrition, animal care
retail, foodservice, processing, packers,
fed, watered, and rested at rest stop
and careers as they relate to beef farming.
producers, industry associations and
stations during long-distance transport is
Also in the fall, we kicked off a public
academic institutions.
completed. This research is being funded
relations campaign aimed at increasing
February 2022 will signal the end of a
by the Beef Cattle Research Council, BFO,
positive news stories in the media about
chapter for me as I’ve decided to step
and Agriculture and Agri-Food Canada, and
beef and beef farming’s positive impacts
down as president but will remain on the
is set to be completed in 2022.
on the environment. Through our efforts,
board for one more year to finish my term
Recently, we were briefed on the
we managed to land several articles and
as background director. I’ve been doing
interviews with outlets such as BNN,
a lot of reflecting over the last several
Reuters, Hamilton Spectator and Canadian
months and I’d like to close my chapter with
SME Business Magazine, to name a few,
this note of gratitude. I’m grateful to be a
as well as some integrated media with
farmer, to grow and raise such a nourishing
however, under amended parameters
McLean’s and the Toronto Star.
protein for my family and my fellow
which states that enforcement of FWR
BFO’s producer engagement team, limited
Ontarians on land that I continue to protect.
requirements will not be prioritized where
by in-person activities due to COVID-19
the maximize time allotted is exceeded by
restrictions, focused on digital resources
four hours or less and all animal welfare
and online engagement in 2021 to provide
outcomes are being met. While this is not the
information and updates to our members.
outcome we had hoped to achieve, it does
The team was also instrumental in the
represent an improvement from the previous
development of our newly launched youth-
plan to limit time off FWR to 36 hours.
focused initiative. BFO will need strong
Another issue impacting livestock operations
leaders providing thoughtful direction
in enforcement, we have been pushing for a further extension until the current research on the welfare impacts of cattle
government’s decision with respect to our request. We were informed that enforcement of the new regulations will come into force as scheduled as of February 20, 2022,
in some regions in the province is the lack of access to veterinary care. BFO has been working to address this shortfall in the province for the last couple of years with a specific focus on increasing the number of
for the organization for years to come. With that in mind, we have introduced the
Association, we finalized year two of our
I’m grateful to have a supportive community of neighbours, friends and family, but also a community of beef farmers, including my fellow board directors, who share many of my values and aspirations for a healthy and thriving beef sector in Ontario. I’m grateful to have had the support of my wife, Lauren, and two children, John and Sophie, and close family over the last two years who have allowed me to serve my industry. For
Ontario Beef Youth Alliance – a powerful
that, I will be forever thankful.
group of individuals with energy and
I wish you all the best in the year ahead. It’s
enthusiasm to grow, protect and advocate
been a pleasure to serve you as president.
BFO ANNUAL REPORT 2022
5
UN MESSAGE DU PRÉSIDENT Rob Lipsett PRÉSIDENT DE BFO
Jamais dans mes rêves les plus fous, lorsque j’ai lancé mon chapeau dans le ring pour rivaliser en tant que président en février 2020, est-ce que je m’attendais à être confronté à la fermeture et à la réouverture d’une usine de transformation fédérale, une pandémie mondiale et à devoir naviguer dans un monde virtuel comme nous n’avons jamais connu auparavant. Le moins que l’on puisse dire, c’est que cela a été une course effrénée, mais je suis très fier de mes collègues administrateurs et de notre personnel qui ont su s’adapter et faire de leur mieux pour répondre aux besoins de nos membres. Depuis que je suis président, nous avons travaillé
et des programmes essentiels. J’ai sincèrement
reconnaissant à ceux qui ont fait des contributions
fort pour maintenir le Programme de gestion
apprécié nos conversations franches, son
en argent, en nourriture, en transport et en temps
des risques de l’Ontario et préconiser des
engagement envers le secteur agricole et son
précieux pour nous aider à exécuter cette initiative
améliorations à tous les programmes de gestion
empathie et son soutien envers nos agriculteurs
significative d’une manière efficace.
des risques de l’entreprise; nous nous sommes
et nos travailleurs de l’agroalimentaire. Nous
battus pour trouver des solutions à notre pénurie
avons également été heureux de voir l’honorable
La nécessité d’accroître la capacité de
de capacité de transformation; nous avons créé
Marie-Claude Bibeau reconduite à titre de ministre
un « Programme de retrait des bovins » comme
fédérale de l’Agriculture et de l’Agroalimentaire
mesure temporaire pour aider les engraisseurs
en octobre. BFO et l’Association des éleveurs de
de bovins qui ont été touchés par les éclosions
bovins (ACEB) ont établi de bonnes relations de
de COVID-19 dans les usines de transformation;
travail avec elle et son bureau, et nous sommes
nous avons aidé nos membres du Nord-Ouest
impatients de faire progresser un certain nombre
de l’Ontario qui ont été durement touchés par la
de dossiers clés avec la ministre, notamment la
sécheresse; nous sommes allés de l’avant pour
réforme de la GRE, le système de crédit sur le
accroître la demande de boeuf de l’Ontario en
carbone, les rapports sur les prix du boeuf en
prenant de l’élan grâce à notre engagement
boîte, harmoniser nos politiques de MRS avec
auprès des consommateurs et à notre travail de
celles des États-Unis et d’autres pays.
développement des marchés; nous avons créé un forum pour la participation des jeunes au sein de notre association; nous avons créé le début d’un environnement plus inclusif pour les gens à l’intérieur et à l’extérieur de notre industrie; et nous avons donné le ton à des conversations plus ouvertes sur la santé mentale dans le secteur agricole. De mon point de vue, tout bien considéré, nous avons effectué un travail exceptionnel pour nous occuper des affaires au nom de notre industrie.
clé pour BFO depuis un certain temps, ce qui était également évident dans un certain nombre de résolutions adoptées à l’AGA de l’an dernier. Nous partageons les préoccupations de nos membres au sujet des arriérés de traitement, des pénuries de main-d’oeuvre, des occasions de marché perdues et la baisse des rendements pour les producteurs en grande partie en raison de la réduction ou du manque de disponibilité de la transformation actuellement. Alors que nous continuons de
confrontés les agriculteurs de l’Ontario en 2021
chercher des solutions pour aider à combler
était les conditions sèches, particulièrement
ces lacunes, nous encourageons également
dans le Nord-Ouest de l’Ontario. BFO a apprécié
nos députés à parler à leurs députés élus
le financement annoncé à la fin de juillet par le
locaux et au Parlement provincial pour les aider
gouvernement de l’Ontario pour aider à prendre
à garder le besoin de solutions à l’esprit.
des mesures d’urgence pour l’alimentation, l’eau
La lueur d’espoir de 2020 a été le changement
et les soins du bétail pour les agriculteurs qui vivent des conditions de sécheresse dans cette région. Grâce à ce financement, BFO a administré l’Initiative d’aide d’urgence aux éleveurs de bétail dans le Nord-Ouest et a livré plus de 5,8
l’Alimentation et des Affaires rurales de l’Ontario,
millions de livres de foin à 129 éleveurs des
Lisa Thompson, a été une véritable championne
districts de Rainy River et de Kenora. Le conseil
du secteur bovin et a offert un soutien financier
d’administration de la BFO est extrêmement
BFO ANNUAL REPORT 2022
provinciales que fédérales, est un objectif
L’un des plus grands défis auxquels étaient
Sur le plan politique, la ministre de l’Agriculture, de
6
transformation en Ontario, tant dans les usines
tant attendu du statut de risque d’ESB du Canada annoncé en mai. Notre passage du risque contrôlé au risque négligeable a été la fermeture historique du chapitre sur l’ESB pour le Canada. Au nom de nos membres, nous apprécions sincèrement le leadership de l’ACEB dans cette réalisation qui permettra à l’industrie bovine d’explorer de nouvelles possibilités d’accès aux marchés.
Une question qui continue d’être un sujet brûlant de
l’Ontario à l’Université de Guelph qui aideront les
En ce qui concerne notre travail de
discussion dans tout le pays est la réglementation
étudiants à poursuivre une carrière dans le domaine
développement des marchés, en collaboration
révisée sur les transports. Des groupes de
de la santé et du bien-être des animaux d’élevage.
avec l’Association des engraisseurs de bovins de
Dans le domaine de l’engagement des
l’Ontario, nous avons finalisé la deuxième année
producteurs de bétail, y compris BFO et l’ACEB, ont exercé des pressions énergiques tout au long de 2019 pour que des modifications soient apportées à la réduction proposée du temps maximal sans nourriture, eau et repos (NER) du 48 heures actuel à 36 heures. Malgré nos efforts, une période de transition de deux ans de non-application a été mise en place et devrait prendre fin le 20 février 2022.
consommateurs, nous avons continué de tirer parti de l’élan généré en 2020. Nous avons mené deux campagnes en 2021, mis à l’essai des podcasts publicitaires et continué de développer de nouveaux actifs créatifs à utiliser dans le cadre de diverses composantes de notre stratégie. Nous sommes reconnaissants d’avoir complété, en
Depuis l’annonce du retard dans l’application
partenariat avec AgScape, l’élaboration de trois
de la loi, nous réclamons une autre prolongation
ressources liées aux programmes d’études à utiliser
jusqu’à ce que les recherches actuelles sur les
dans les salles de classe. Les plans de leçon, lancés
répercussions sur le bien-être des bovins nourris,
à l’automne 2021, sont axés sur les élèves de la
abreuvés et reposés aux stations d’arrêt pendant le
7e à la 12e année et portent sur des sujets comme
transport sur de longues distances soient terminées.
l’environnement, la nutrition humaine, les soins aux
Cette recherche est financée par le Conseil de
animaux et les carrières liées à l’élevage bovin.
recherches sur les bovins de boucherie, BFO et
Également à l’automne, nous avons lancé une
Agriculture et Agroalimentaire Canada et devrait être terminée en 2022.
campagne de relations publiques visant à accroître les reportages positifs dans les médias au sujet
Récemment, nous avons été informés de la décision
des répercussions positives de l’élevage bovin sur
du gouvernement concernant notre demande.
l’environnement. Grâce à nos efforts, nous avons
Nous avons été informés que l’application du
réussi à décrocher plusieurs articles et entrevues
nouveau règlement entrera en vigueur comme
avec des médias comme BNN, Reuters, Hamilton
prévu le 20 février, 2022, toutefois, en vertu de
Spectator et Canadian SME Business Magazine, pour
paramètres modifiés qui stipulent que l’application
n’en nommer que quelques-uns, ainsi que certains
des exigences de NER ne sera pas priorisée
médias intégrés avec Maclean’s et le Toronto Star.
lorsque le temps maximal alloué est dépassé de
L’équipe de mobilisation des producteurs de BFO,
quatre heures ou moins et que tous les résultats en matière de bien-être des animaux sont atteints. Bien que ce ne soit pas le résultat que nous espérions obtenir, cela représente une amélioration par rapport au plan précédent visant à limiter à 36 heures le temps passé sans NER.
limitée par les activités en présentiel en raison des restrictions liées à la COVID-19, s’est concentrée sur les ressources numériques et la mobilisation en ligne en 2021 pour fournir de l’information et des mises à jour à nos membres. L’équipe a également joué un rôle déterminant dans l’élaboration de notre
de notre stratégie initiale de quatre ans, qui est financée par la contribution provinciale. Notre stratégie de commercialisation continue de mettre l’accent sur quatre objectifs clés pour améliorer la compétitivité de l’industrie bovine de l’Ontario et procurer des avantages directs aux éleveurs de bovins de l’Ontario. Les travaux se sont poursuivis en 2021 malgré les défis de la pandémie et ses répercussions sur les déplacements et l’exécution d’événements et de programmes. À l’heure actuelle, 38 projets sont en cours à diverses étapes de mise en œuvre dans divers secteurs, notamment la vente au détail, la restauration, la transformation, les emballeurs, les producteurs, les associations industrielles et les établissements d’enseignement. Février 2022 marquera la fin d’un chapitre pour moi, car j’ai décidé de démissionner de mon poste de président, mais je resterai au conseil pendant un an de plus pour terminer mon mandat à titre de directeur. J’ai beaucoup réfléchi au cours des derniers mois et j’aimerais clore mon chapitre avec cette note de gratitude. Je suis reconnaissant d’être un agriculteur, de cultiver et d’élever une protéine aussi nourrissante pour ma famille et mes concitoyens ontariens sur des terres que je continue de protéger. Je suis reconnaissant d’avoir une bonne communauté de voisins, d’amis et de membres de ma famille, mais aussi une communauté de producteurs de boeuf, y compris mes collègues administrateurs, qui partagent bon nombre de mes valeurs et de mes aspirations
Le manque d’accès aux soins vétérinaires est
nouvelle initiative axée sur les jeunes. BFO aura
un autre problème qui touche les exploitations
besoin de leaders forts pour fournir une orientation
d’élevage dans certaines régions de la province.
réfléchie à l’organisation pour les années à venir.
BFO s’efforce de combler ce manque à gagner
Dans cette optique, nous avons présenté l’Ontario
dans la province depuis quelques années en
Beef Youth Alliance – un groupe puissant de
mettant l’accent sur l’augmentation du nombre de
personnes qui ont de l’énergie et de l’enthousiasme
vétérinaires spécialisés dans les animaux destinés
pour croître, protéger et préconiser l’industrie
à l’alimentation en Ontario. En 2021, pour aider à
bovine de l’Ontario. Bien que ce groupe ne soit qu’à
constituer un solide bassin de leaders vétérinaires,
ses débuts, je suis encouragé par l’intérêt initial qu’il
Je vous souhaite la meilleure des chances pour
nous avons approuvé l’établissement de deux
suscite et je me réjouis de leur contribution et de
l’année à venir. Ce fut un plaisir de vous servir à titre
bourses d’études avec le Collège vétérinaire de
leur perspective supplémentaires.
de président.
pour un secteur bovin sain et prospère en Ontario. Je suis reconnaissant d’avoir eu le soutien de mon épouse, Lauren, et de mes deux enfants, John et Sophie, et de ma famille proche au cours des deux dernières années qui m’ont permis de servir mon industrie. Pour cela, je serai toujours reconnaissant.
BFO ANNUAL REPORT 2022
7
BFO PAST PRESIDENTS
8
1963
Bruce Mehlenbacher, Haldimand
1989
Jim Magee, Oxford
1964
Ross Beattie, Simcoe
1990
David Whittington, Peterborough
1965
George Morris, Kent
1991
Glenn Coultes, Huron
1966
Harvey Ackert, Bruce
1992
Doug Gear, Dufferin
1967 - 1968
Walter Beath, Ontario County
1993
Robert Kerr, Kent
1969
Vern Kaufman, Oxford
1994
Ken Summers, Victoria
1970
Lawrence Markusse, Lambton
1995
Harvey Graham, Durham East
1971
Hugh Grace, Lanark
1996
Dale Pallister, Grey
1972
Tom Jackson, Peel-Halton
1997
Linda Barker, Haldimand
1973
Stewart Brown, Elgin
1998
Bob Dobson, Renfrew
1974
Grant Burroughes, York
1999
Darlene Bowen, Temiskaming
1975
Clarence Hardy, Middlesex
2000
Stan Eby, Bruce
1976
Ronald Oswald, Bruce
2001
Dick van der Byl, Glengarry
1977
Archie Etherington, Huron
2002
Mike Buis, Kent
1978
Alex Connell, Wellington
2003 - 2004
Ron Wooddisse, Wellington
1979 - 1980
Morley Shepherdson, Temiskaming
2005 - 2007
Ian McKillop, Elgin
1981
Gus Lask, Ontario County
2008 - 2009
Gord Hardy, Middlesex
1982
Tony Noorloos, Lambton
2010 - 2011
Curtis Royal, Simcoe
1983
Robert Chapple, Kent
2012 - 2013
Dan Darling, Northumberland
1984 - 1985
Gerhard Schickedanz, York
2014 - 2015
Bob Gordanier, Dufferin
1986
Edgar Wideman, Waterloo
2016 - 2017
Matt Bowman, Temiskaming
1987
Hugh Sharpe, Lennox and Addington
2018 - 2019
Joe Hill, Wellington
1988
Robert Gregson, Elgin
BFO ANNUAL REPORT 2022
2021 BOARD OF DIRECTORS
ROB LIPSETT President Background Director Annan, Ont. CCA Director
DON HARGRAVE Cow-Calf Director Maxwell, Ont.
JACK CHAFFE Vice President Feedlot Director Mitchell, Ont.
JASON LEBLOND Cow-Calf Director Powassan, Ont.
CCA Director Canadian Beef Checkoff Agency Director
DON BADOUR Cow-Calf Director Perth, Ont
JOE DICKENSON Feedlot Director Brigden, Ont.
JORDAN MILLER Northern Director Kagawong, Ont.
CRAIG MCLAUGHLIN Eastern Director Foresters Falls, Ont.
CCIA Director
DAVID MILLSAP Feedlot Director Creemore, Ont.
CCA Director
RON STEVENSON Southern Director Walton, Ont.
JASON REID Director At-Large Thunder Bay, Ont.
KIM JO BLISS Director At-Large Emo, Ont.
BCRC Director
BFO ANNUAL REPORT 2022
9
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 most importantly you, the members, for your continued dedication and commitment to the Ontario beef industry. Without you, there would be no BFO. While we had all hoped that 2021 would
action across many organizations at both
review Canada’s specified risk material
bring a return to pre-COVID-19 business
the provincial and national level.
(SRM) removal policies with the goal of
2021 will also be remembered as a year
aligning Canada’s SRM protocols to those
operations, BFO, like many organizations, was forced yet again to offer much of our programming and conduct the majority of our business remotely. Despite this, 2021 will represent an important year for many reasons.
that arguably garnered more direct investment from federal and provincial governments in response to beef industry issues and concerns than any other in recent memory. Over $50 million dollars
in the United States. The SRM review will be focusing on key areas including U.S.-Canada protocol comparison; public and animal health considerations; risk modeling; and international trade
Firstly, I’m proud of the leadership
was directed to the Ontario beef sector
implications.
shown by our BFO Board of Directors to
in 2021 to: increase compensation rates
The Beef Cattle Research Council (BCRC)
engage directly in diversity, equity and
under the AgriStability program; help
has agreed to fund a contract with
inclusion discussions. BFO made a public
address deadstock management capacity;
Research Sciences International to define
commitment to ensure the beef industry
increase meat processing capacity;
the problem definition as it relates to
acts as an ally to marginalized groups
increase feed intake monitoring capacity
developing a comprehensive SRM review.
in the fight against discrimination and
at the Ontario Beef Research Centre; and
This initial step will ensure the full SRM
racism, and to improve the inclusiveness
provide emergency hay, water, and fencing
review will encompass all the necessary
of our association. The development
to producers in drought-stricken regions of
aspects to make an informed risk-based
and promotion of the BFO statement of
northwestern Ontario.
decision on what changes can be made to
2021 will also commemorate the year
Canada’s SRM removal policies.
Canada’s BSE risk status was finally
We are hopeful that the review will
downgraded from controlled to negligible.
be completed before the end of this
While the change in our risk status was
coming spring. CFIA will then assess the
an event that should be celebrated, the
information provided and respond with a
real work is now just beginning. The
recommended course of action. We know
Canadian Cattlemen’s Association (CCA)
change isn’t happening as fast as anyone
and the Canadian Food Inspection Agency
would like, but we remain optimistic that
(CFIA) have initiated a working group to
meaningful improvements will be made to
values, the internal audit of BFO policies and procedures around hiring and procurement, and refining board and staff codes of conduct were important steps to be taken. Board, staff and other elected members also took part in a comprehensive multi-session training and education program delivered by a reputable independent third party. As well, BFO’s work helped spur conversations and
10
BFO ANNUAL REPORT 2022
SRM rules, and that the remaining BSE-
annual report, I will say that I am pleased
Relations and Governance Committees;
related market access restrictions will
with the progress we have been able to
increased frequency of meetings of
finally be lifted sometime in the near future.
make in such a short time. Moving forward,
the Advisory Council; broadened and
2021 also marked the expansion of the
I foresee additional investments being made
increased communications to local
in marketing, promotion, and consumer
associations; and the creation of the
engagement in support of our strategy
Ontario Beef Youth Alliance. The drivers
to increase the penetration and market
of these actions are to promote leadership
share of Ontario beef in key domestic and
development and youth involvement
cattle that come from audited operations
international markets.
in BFO and the Ontario beef sector, to
under either the Verified Beef Production Plus
BFO’s current strategic plan has been
increase opportunities for input into BFO
(VBP+) program or the Ontario Corn Fed Beef
focused primarily on the marketing and
Quality Assurance Program.
promotion of Ontario beef, and on engaging
With this news, BFO partnered with the
consumers and the public directly about
Certified Sustainable Beef Program with the inclusion of Cargill’s Guelph facility. For the first time, producers in Ontario now have the ability to receive financial credits for qualifying
Ontario Cattle Feeders’ Association (OCFA) to launch the Ontario Beef Quality Assurance Rebate Incentive Program which provides check-off paying members with
beef production and the Ontario Beef brand story. Engagement with producers is the third pillar of our plan. On that note, we’ve made a concerted effort to increase
business, and to ensure our internal procedures and governance structure reflect modern best practices. This is an evolving process, and one that will continue to be assessed critically by the board to ensure we are fulfilling our mandate and the expectations of our
our engagement with grassroots members
members.
through our local associations, and through
In closing, I would like to commend the
other communications mediums. This
board and staff for their tireless efforts to
was a key recommendation coming out
help the association and the sector navigate
of our 2020 Governance Review. We
another pandemic year. I would also like
acknowledge we have more work to do on
to acknowledge and congratulate Stan
this front and would welcome advice from
Eby, former president of both BFO and the
the members on how best to reach those in
CCA on his induction into the Ontario and
the countryside, and on topics and areas of
Canadian Agriculture Halls of Fame. BFO
beef quality assurance programs, a key
focus you’d like to see greater emphasis on.
was thrilled to see our joint nomination
component of our Ontario Beef Market
On the topic of the 2020 Governance
with CCA accepted by both prestigious
Development strategy.
Review, the BFO Board of Directors
institutions. Congratulations Stan!
On the topic of marketing, we continued
implemented a number of internal
2021 will go down as a year filled with
changes this year based on the review,
challenge, success, and continued
in consultation with our Governance
uncertainty. However, I am proud of what
Committee, Advisory Council, and Cow-
BFO and the sector have been able to
Calf and Feedlot Committees. Actions
achieve and I maintain a bullish outlook
included: a full review and modernization
on the future, I hope you do, too. Thank
of our internal policies and procedures;
you for the opportunity to serve this
the addition of the Young Cattlemen’s
great sector, and may each of you and
Council representative to our board in a
your families enjoy and a healthy and
non-voting capacity; the inclusion of non-
prosperous 2022.
a 75 per cent rebate on VBP+ audit fees for members who become VBP+ certified through the completion of training, and an on-farm audit. Expansion of VBP+ training and audits facilitated by our staff supports our collective industry goal of increasing the supply of certified sustainable calves for Ontario certified sustainable feedlots and to increase adoption and support of
to increase our investment and focus on the marketing and promotion of Ontario beef through the Ontario Beef Market Development program jointly managed by BFO and OCFA, as well as our marketing and consumer engagement activities delivered under BFO’s consumer engagement strategy. While both John Baker and Jennifer Kyle will speak to these complementary programs in dedicated sections of this year’s
board representatives to the Government
BFO ANNUAL REPORT 2022
11
BFO SUPPORTS ALL MEMBERS OF OUR COMMUNITY ADVOCATING FOR DIVERSITY, EQUITY & INCLUSION IN THE AGRI-FOOD SECTOR In late 2020, BFO made a public commitment to advocate for diversity, equity and inclusion (DEI) within the beef sector and broader agri-food industry, and to fight racism and discrimination in all its forms. The intention is to help lead a culture shift that sees the industry become a welcome and inclusive environment for anyone who lives in, works in, and interacts with our sector. Diversity, equity and inclusion remained
– we appreciate you taking the time during
a priority for the BFO Board of Directors
a busy time of the year to engage in the
and staff throughout 2021 and we would
experience with us.
like to share some of the activities we have undertaken in effort to live up to our commitment.
remain accountable to our commitments
made during BFO meetings and events.
the board made the decision to install a
on that DEI was new to many of the
permanent Diversity, Equity and Inclusion
directors, staff and members. In order
Committee that consists of three elected
to ensure actions were not taken
directors, the current president and a
haphazardly or inadvertently harmful,
minimum of two staff members. In the
a solid foundational understanding of
spirit of inclusivity, the committee is an
DEI would be required. BFO partnered
open committee. While the above are the
with a company called Bloom to provide
minimum requirements of the committee
a comprehensive learning experience
structure, any board or staff member is
that started from the beginning. In the
welcome to join the committee at any time.
spirit of sharing the experience wider, we
The committee is tasked with keeping
invited representatives from BFO’s local
the organization accountable, as well as
associations, as well as Ontario Federation
ensuring the work continues to move
of Agriculture, Canadian Cattlemen’s
forward and addressing any DEI-related
Association and Ontario Sheep Farmers to
issues and questions as they arise.
in facilitated sessions aimed at building a solid foundational knowledge of DEI, anti-racism and becoming actively antiracist and restorative healing to digest the learnings. Thank you to everyone who participated in the Bloom learning program
12
BFO ANNUAL REPORT 2022
• Created a policy and best practices for addressing inappropriate comments
Learning: The board recognized early
of eight weeks, 65 participants engaged
increase accessibility.
Accountability: In effort to ensure we as we move forward with our DEI work,
join the board and staff. Over the course
• Made improvements to the BFO office to
Activities: In addition to training and accountability, BFO was part of a number of different activities throughout the year: • Participated in several meetings with other commodity and ag sector organizations to get the conversation started in the broader industry and discuss possible collaborations to move the conversation forward.
• Collaborated on a joint statement recognizing the first National Day for Truth and Reconciliation. We were pleased to have 14 commodity and ag sector organizations sign on to the statement. • Took steps to ensure DEI was top of mind when selecting influencers, spokespeople and companies to partner with for our consumer engagement and PR work. In 2021, we worked to have 50 per cent of the influencers be people of colour, and 50 per cent of our partner companies were either women-owned, BIPOC-owned, or both. • Continued to strongly support community organizations like Feed Ontario, AgScape and 4-H that provide important service, support, education and programming to diverse communities all across the province. • Increased support to AgScape to specifically support their efforts to translate and deliver their resources and programming in French language and
French-Immersion schools. • Increased advocacy for mental health resources and support services for farmers. • Participated in DEI focused initiatives and projects through Canadian Centre for Food Integrity and Canadian Agriculture Human Resource Council. • Delivered presentations to other organizations on how and why we started our work. • Participated in several media interviews and speaking engagements over the course of the year. We continue to actively look at our organization and current activities to see where we can do better, and how we can weave education and advocacy around diversity, equity and inclusion into existing
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.
activities and programming. As we continue to listen and learn, our commitments and actions will continue to develop over time as we work to evolve the culture within the sector to be more welcoming to and supportive of all members of our communities. If you have questions or if you have thoughts or ideas on actions to consider or areas for improvement, please connect with us.
BFO ANNUAL REPORT 2022
13
BFO STAFF
14
RICHARD HORNE Executive Director X 234 richard@ontariobeef.com
CATHY GOLUBIENKO Corporate Secretary cathyg@ontariobeef.com
TAMMY PURDHAM Office Manager X 231 tammy@ontariobeef.com
AMBER MCINTYRE Accountant x 222 amber@ontariobeef.com
THOMAS BRANDSTETTER Manager of Policy and Issues X 236 thomas@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 2022
JAMIE GAMBLE Market Information Coordinator x 235 jamie@ontariobeef.com
DAN FERGUSON Manager of Producer Relations 905.375.8551 dan@ontariobeef.com
JACLYN HORENBERG Senior Producer Relations Specialist 519.608.2429 jaclyn@ontariobeef.com
ROBERT MCKINLAY Producer Relations Specialist 226.668.0775 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 2022
15
GOVERNMENT RELATIONS
In 2021, BFO’s policy team continued to monitor, research and respond to a high volume of legislative proposals, bills, and proposed policy and program changes. In addition, BFO’s Board of Directors and senior staff maintained close contact with MPs, MPPs, and political staff to keep the priorities for Ontario’s beef industry top-ofmind with decision-makers.
Policy/Program Improvements Achieved • Canada’s BSE risk status reduced from controlled to negligible • Initiation of the specified risk material (SRM) removal policy formal review by CFIA with industry participation • Additional 4-hours of transit time provided under the new humane transport regulations plus increased
Outreach Statistics • 12 government consultation submissions across six different ministries, departments and agencies • Four committee appearances • 50+ meetings with MPs, MPPs, and political staff
Funding Commitments Secured • $1 million to help increase deadstock management capacity • $4 million to help increase veterinary access for northern, remote, and underserviced communities • $32 million across two separate funding programs to help increase meat processing capacity in Ontario • $1.3 million in new research infrastructure for the new feedlot facility at the Ontario Beef Research Centre • $15 million across three different programs to assist producers with drought recovery in northwestern Ontario
flexibility for transport delays due to unforeseen circumstances • Improvements implemented to the Ontario Feeder Cattle Loan Guarantee Program • AgriStability compensation rates increased from 70 to 80 per cent on the provincial portion • Removal of the five-year Agricultural Operation Planning certificate requirement for farmers that develop
BFO ANNUAL REPORT 2022
bidding on Ontario cattle; increasing support for processing capacity; harmonizing Canada and Ontario’s SRM removal policies with the U.S.; further enhancing the BRM suite of programs, including continued development of a national beef specific margin or revenuebased program; continued opposition to the reemergence of M-COOL in the U.S.; improving access to labour and skills training for farms and processors; developing a workable carbon credit system; enhancing government supported financing programs for young, beginning, and expanding beef farmers, with particular focus on the development of a capital gains deferral program; mandating boxed beef price reporting; addressing export barriers to the EU and UK; and finally, expediting the removal of lingering BSE-era market access restrictions and barriers.
their own nutrient management strategy or plan under the Nutrient Management Act While significant financial commitments and policy, program, and regulatory improvements were made that benefit the Ontario beef sector in 2021, we continue to press government and regulators on a number of other files and issues of importance.
Provincial Priorities Provincial priorities include: increasing the investment in Ontario’s Risk Management Program (RMP) by $100 million annually; reducing outstanding red tape and regulatory burdens associated with the Nutrient Management Act; expanding access and support for breeder and feeder loan programs; resolving outstanding program issues under the Ontario Feeder
Federal Priorities On the federal side, priorities include: addressing export barriers with South Korea, which are preventing many
16
American packers from consistently
Cattle Loan Guarantee Program; creating additional incentives and processes that help address large food animal veterinary shortages in northern, eastern, and
underserviced regions; pursuing updates
• Continued and targeted investments
• Strengthening BRM programs, including
to the corn silage conversion formula under
in science, research and innovation
creation of yield-based forage insurance
crop insurance; improving the transparency
to address key challenges and
and a beef specific revenue or margin-
and inspection processes associated
opportunities
based insurance program
with cattle condemnations at provincially inspected abattoirs; seeking improvements and possible regulatory amendments to the animal care inspection and enforcement system under the Provincial Animal Welfare (PAWS) Act; modernizing the Beef Cattle Marketing Act; and seeking further investments and support to help improve deadstock collection and on-farm deadstock management. BFO was pleased with the level of progress that was made on a number of priorities in 2021, and the significant investments the sector was able to secure from government.
• Supporting sustainable agriculture and economic growth by creating the conditions for Canadian businesses to meet evolving challenges of the interconnected domestic and global marketplace • Building sector capacity and growth through realizing the potential of valueadded agri-food and agri-products • Enhancing resiliency to anticipate, mitigate and respond to risks, including a robust suite of Business Risk Management programs.
• Increasing investment and support for meat processing capacity • Ensuring beef farmers have access to carbon credits, and are included as active participants in climate change and methane reduction discussions • Improving on-farm strategic investment programs, including allowances for growth and expansion activities, manure storage funding, and perimeter fencing, among other priorities • Increasing support for research and innovation, including the OMAFRA-
Canada’s national agriculture policy is
University of Guelph funding agreement,
currently referred to as the Canadian
and the national beef science cluster
FPT Conference & the Next Ag Policy Framework
Agriculture Partnership or CAP for short,
BFO was also pleased to sponsor and
year agriculture policy frameworks such
welcome federal, provincial, and territorial
as Growing Forward I and II, and Canada’s
(FPT) ministers of agriculture, national farm
Agricultural Policy Framework. The national
organizations, and Ontario agri-food leaders
policy frameworks have been in place for
to Guelph this past November for the annual
many years, with each five-year agreement
FPT agriculture ministers conference. This
negotiated between FPT governments with
was the first time the conference was held
industry input and comments received through
in Guelph. During these meetings, the
public consultation. BFO and the Canadian
The value of open discussion with
ministers decided on a collective direction
Cattlemen’s Association (CCA) have provided
government cannot be overstated. The
for the Next Policy Framework (NPF) and its
input on every policy framework to date.
BFO Board of Directors is active and
top priorities, outlined in a document called the Guelph Statement.
which is set to expire in 2023. CAP is a successor agreement to previous five-
With CAP expiring in 2023, federal and provincial governments have been in
The top priorities from the Guelph
negotiations with each other and collecting
Statement include:
feedback from stakeholders. Both CCA
• Tackling climate change and
and BFO developed position documents
environmental protection to support GHG emission reductions and the long-term vitality of the sector while positioning
this year, which have been submitted for government consideration. A copy of BFO’s submission can be found at www.
producers and processors to seize
ontariobeef.com
economic opportunities from evolving
The six key issues BFO outlined in our NFP
consumer demands
submission include:
• Improving support and access to grants and loan programs for new entrants and young farmers, including the creation of a national Capital Gains Deferral Fund BFO will continue to monitor and engage in discussions regarding the development of the Next Agriculture Policy Framework, and submit additional information and priorities to government officials as issues arise.
committed to keeping issues affecting Ontario’s beef industry top of mind in government. However, MPs and MPPs need to hear from their constituents, the grassroots of our organization. Heading into a spring provincial election in 2022 and the first full year of the new federal government’s mandate, we need as many members as possible to be reaching out to their local representatives.
BFO ANNUAL REPORT 2022
17
RESEARCH AND INNOVATION Flexibility continued to be exercised in 2021
research proposals, which is expected to
in the administration of many BFO-funded
be launched in late 2022 for funding to
research projects given continued COVID-
begin in 2023.
related disruptions. While many projects funded under the 2019 call for proposals are still in-progress, the BFO Research Committee continues to welcome ad-hoc requests for research project funding on an ongoing basis. All investments in research programs are vetted against the BFO Research Investment Strategy, which was updated and revised this past year. The overarching goal of our updated research strategy is to generate actionable research data that grassroots
• Other (nutrition, feed efficiency and production process) (2) In addition to the above, BFO continues
Two projects that will wrap up in 2022
to support the nationally-led satellite-
include “Depletion of Dexamethasone
based forage yield project that is currently
in Cattle: Food Safety Study in Dairy and
collecting forage yield data on sample
Beef Cattle” and the “Potential of Pasture
farms in Ontario. The project goal is to
and Forages to Mitigate the Environmental
evaluate the accuracy of satellite imagery
Impact of Beef Production in Ontario”. We
against real forage growth observed on
look forward to conveying the results from
the ground. If the technology is found to
these projects when available.
be highly reliable, a new forage insurance
Currently there are 14 active projects, which
product could be developed based on yield
fit under our six research priority areas:
rather than rainfall.
• Environmental Sustainability (4)
Another project that BFO funded outside of our funding call for proposals was an
producers will be able to use to make their
• Animal Health and Welfare (4)
operations more efficient, productive, and
• Antimicrobial Resistance and Use (2)
in the price and margin spread across the
• Food Safety (1)
farm, processing, and retail beef sector
environmentally sustainable. The revised 2021-2024 Research Investment Strategy will inform the next formal call for beef
18
BFO ANNUAL REPORT 2022
• Market Analysis (1)
economic analysis project examining trends
in Ontario. The study was commissioned to assess the reasons and implications
behind the pricing performance through
to wait until 2022 for an opportunity to tour
the industry in light of the significant packer
the modernized facilities.
margins that have been observed in recent
The final phase of construction that
years, particularly since the start of the
was completed in 2021 included a new
pandemic.
feedlot barn that now has a capacity for
Also, in 2021, BFO in partnership with the
288 growing and finishing steers, which
University of Guelph and the Livestock
is an increase of about 96-head over the
Research and Innovation Corporation
previous feedlot barn.
(LRIC) hosted a number of research-
In November, BFO welcomed an
focused events to engage with researchers on how to expand beef research at the University of Guelph, as well as a session with producers to share details on current research projects. BFO’s producer relations team also continues to work closely with the Beef Cattle Research Council (BCRC) on extension of research with producers in eastern Canada.
announcement by federal and provincial
Ontario Beef Research Centre We are happy to report that the final phase of construction at the Ontario Beef Research Centre in Elora was completed in late 2021. Unfortunately, ongoing COVID-19 restrictions have prevented the University of Guelph from allowing open
ministers of agriculture to provide $1.3 million dollars’ worth of feed intake monitoring equipment for use at the new feedlot barn. BFO was encouraged by this additional funding as it reinforces the commitment by both levels of government to support research, innovation and growth within the eastern Canadian beef sector.
public tours, so many producers will have
BFO ANNUAL REPORT 2022
19
COMMUNICATIONS & PRODUCER ENGAGEMENT Ontario Beef Magazine
Industry Updates and Breaking News
Ontario Beef was published five times
To expand our reach, we worked diligently
in 2021 (February, May, August, October
in 2021 to increase contact with our
and December) and distributed to
members through important industry
approximately 16,000 of BFO’s members,
updates and breaking news sent direct
industry partners, MPs and MPPs. The
by email from BFO. While this is similar
magazine provides BFO members
to the Bull-etin Board e-newsletter, the
and industry stakeholders with timely
information through this channel is shared
information, updates on current industry
as it happens and provides in more detail
issues, upcoming events, market statistics
background on issues impacting the beef
and more. We continue to update our
and agriculture sectors.
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.
Bull-etin Board E-Newsletter
Wellness on the Farm
Qualifying producer applications in 2021 included youth programs and scholarships, and educational workshops, while consumer activities included generous support of local food banks throughout the province, engaging consumer awareness partnerships with local grocery stores and drive-thru agriculture education events.
Sponsorship, Partnerships & Events BFO continued to support a number of initiatives throughout 2021 despite the ongoing challenges of the pandemic:
The overall sustainability and health of the
• 4-H Ontario, Virtual Discovery Days
agricultural sector is dependent on our
• AgScape
producers and their mental wellness. As many challenges faced within the sector
• Beef Symposium
cannot be controlled or eliminated, stress,
• Canadian Farm Writers’ Federation
anxiety, social isolation and burnout can
• Christian Farmers Federation of Ontario
be inevitable. At BFO, we have been
• Fall Finale Beef Show
The Bull-etin Board e-newsletter was
increasing our efforts on prioritizing the
issued weekly to our subscribers in 2021.
mental health of our members. We have
• Grey Bruce Farmers’ Week
The e-newsletter captures the headlines of
an excellent resource page on our website
the week, news releases, upcoming events
under Services, and we continue to
• Ontario Federation of Agriculture
and weekly market information. If you
incorporate mental health conversations
would like to receive The Bull-etin Board
into our programming.
• Ontario Legislature Internship
Sharecost Program
• Ontario Junior Angus Association
The Sharecost Program continues to
• Ontario Soil Network
provide financial support to BFO’s local
• Ontario Young Simmental Association
in your inbox, please visit the homepage of BFO’s website to subscribe.
Social Media
• Ontario Forage Council Programme
BFO’s social media platforms continue to
associations for their hosted producer and
keep our members informed of the latest
consumer engagement activities. In 2021,
news, events and opportunities within the
31 local associations received a total return
beef industry. We are currently active on
of just over $70,000. While the COVID-19
Producer Engagement
Twitter, Facebook, YouTube and Instagram
pandemic continued to prevent some
posting daily to our social channels.
events and programs from occurring, local
2021 was an exciting year for engaging
Our following continues to grow, but we
associations worked to find new ways to
are always focused on increasing our
reach local consumers, as well as connect
engagement and reach with our members.
with and inform their local producers.
20
BFO ANNUAL REPORT 2022
• University of Guelph, College Royal
with our members, with BFO’s producer relations team planning a wide range of new and innovative ways to connect and provide learning opportunities for
beef farmers. These resources included
Symposium in conjunction with OMAFRA
webinars, videos and virtual workshops
and the University of Guelph. BFO also
that provided up-to-date information and
partnered with the University of Guelph
the chance to network and connect with
and the Ontario Veterinary College
each other.
for a webinar highlighting precision
We hosted a large number of webinars in
technologies in beef production, presented
2021 for producers – from topics ranging from an overview of the latest transport regulations and one featuring Steve Kenyon of Greener Pastures Ranching Limited who spoke about grazing and water systems.
by Dr. Diego Moya from the Western College of Veterinary Medicine. We also continued our successful collaboration with OMAFRA and Ontario Sheep Farmers on three virtual Grazing Cover Crop sessions
videos coming this year. The last component of our producer engagement activities in 2021 focused on the development of the Ontario Beef Youth Alliance (OBYA). The Ontario Beef Youth Alliance is a powerful group of individuals with energy and enthusiasm to grow, protect and advocate for Ontario’s beef industry. The OBYA will be comprised of members between the ages of 18-35 and who have subscribed to become
A “Class is in Session” webinar series was
throughout the fall of 2021.
established in partnership with the Beef
BFO was eager in 2021 to launch our
OBYA members by sharing information
Cattle Research Council, sharing lessons in
“Rural Ramble…on the Road” video series.
on youth-based programming and events,
animal care. In late December, BFO and Farm
BFO’s producer relations team hit the road
networking and mentorship opportunities,
Management Canada hosted a three-day
for some casual conversations with our
access to funding information and
Farm Financial Fluency workshop to support
members on important and interesting
resources, career opportunities, and more.
producers in broadening their understanding
topics like checking cattle, grazing cover
We encourage anyone who is interested in
of their farm’s financial position.
crops, fencing and watering systems, and
becoming a member of the Ontario Beef
Early in 2021, we hosted the virtual Beef
feed testing. The entire series is available
Youth Alliance to visit the BFO website to
on BFO’s YouTube channel, with more
subscribe.
a member. BFO will provide benefits to
BFO ANNUAL REPORT 2022
21
CONSUMER ENGAGEMENT As a reminder, 25 cents of the $1.50
and new content is highlighted. We are in
check-off increase, implemented in
the process of updating the environment
November 2019, stays with BFO to support
section, as an example. Our beef cuts
producer and consumer engagement
page and the store locator continue to be
activities. While 2020’s efforts were spent
the most popular stops for visitors to the
putting our new strategy into action, 2021
website. We continue to promote the store
saw us able to generate more momentum.
locator opportunity for butchers, retailers
The focus of our consumer engagement
and farmers marketing direct. Currently,
program in 2021 was continuing to build on the energy created throughout 2020. Fortunately, the vast majority of our new strategy was designed to be carried out digitally in 2020, which served us well in
there are 150 retailers included in the locator, and we recognize there are still many others who may wish to be included in the listings. An application form is available from the office for those wishing to have
2020 and again throughout 2021. With
their retail business added to the map.
the ongoing COVID-19 pandemic, we kept
Social media – The focus of our Ontario
our plans focused online and were able
Beef social media channels in 2021 was
to execute our digital media strategy as
to use our content to continue to build
planned, and have done so with excellent
an engaged audience across each of
results again this past year.
our channels, with the bulk of the effort
2021 was a very busy year spent building
put toward Instagram and Facebook. We
momentum using a “simmer and boil” approach for a lot of our work. This means we had a continual stream of content and activity happening throughout the year (simmering), but a couple of times during the course of the year, we ramped everything up to a boil to execute two large-scale campaigns. The following is the
continued using a balance of organic and paid social media, which helped our content find its way in front of those who would be most interested, but who we had not yet connected with. We also ran three targeted “micro” influencer campaigns that helped amplify our messaging at specific times between our larger
recap of the work we undertook in 2021:
campaigns.
Ontbeef.ca – Traffic to the consumer
The first of our key campaigns was the
website continues to increase steadily. Both of the key campaigns run through our social channels throughout the year were once again focused on driving traffic to different areas of the site, and did so with great success. We had almost 82K
“Ontario Beef BBQ Battle: Just Add Fire”, which ran in July and August. The BBQ Battle campaign was modeled after the successful and award-winning Burger Battle from the previous year, which was awarded a gold medal at the Influencer
visits to the website in 2021, and 87 per
Marketing Awards in July.
cent of the visitors were first-time visitors
The battle concept was incredibly
to the site.
successful last year, so we opted to go
We continue to update and tweak the
with a fresh take on the same concept.
site regularly to ensure it is always fresh
22
BFO ANNUAL REPORT 2022
Our intention is to have our battles
Ontario Beef supports all Ontario beef industry stakeholders by laying the foundation for the promotion of ALL Ontario beef products and the entire industry. Our focus is solely on Ontario consumers and our efforts support the Ontario Beef Market Development Program, as well as individual farmers, brands, retailers, etc.
become an annual summer staple and
Carrick Bros. Maple Syrup). The goal of
have Ontario Beef become known for
this campaign was to inspire shoppers
these epic battles.
to source local products to pair with
Andrew Gunadie (Gunnarolla) was back
their Ontario beef, inspire new recipe
as our dynamic host and battle judge, and four BBQ masters from across the province battled it out for top honours. Challengers were selected based on a number of criteria, including things like their proposed recipe and how they planned to use fire, their social media following and status as an “influencer” and, to some extent, their location. We tried to find representation from around the province and this year had challengers from Timmins, Oakville, Oshawa and Barrie. A big part of the success we had the first year was due to the fantastic community engagement we had. Our goal was to continue to build that engagement by challenging our followers
and pairing ideas, and capitalize on the “local food” movement that is still holding strong. The first wave of partners hit the market in mid-November, we took a brief hiatus over the holidays and a second wave is expected to hit the market in midJanuary as the campaign runs through to the end of January. As the campaign is still running at press time, we don’t have final results, but preliminary data shows that this campaign has been well-received. It is also worth mentioning the excitement of the partner companies to participate with us. Thank you to the folks at Dennis’ Horseradish, Carrick Bros. Maple Syrup, Kinsip Fine Spirits, Chaude Curry and
to share their own BBQ creations using
Salt+Mustard.
#justaddfire. To add a little incentive, we
Between campaigns, we engaged with
gave away a Broil King Pellet Smoker to
several influencers and Ontario Beef
one lucky Ontario Beef fan.
enthusiasts to keep the momentum going
The BBQ Battle was another homerun in
in smaller bursts. Zimmy’s Nook, Abhiskek
terms of results. Our content reached over 700K people, received 58K engagements, made 2.1M impressions and drove over 38K visits to the website. These are fantastic results, especially given this summer was a far more competitive advertising marketplace with many companies getting back on track with their marketing strategies. Our second key campaign was our “Enjoy Some Local Flavour” campaign, which saw us partner with several Ontario food and beverage companies to do some crosspromotion. While some of the partners
Dekate, J & E Meats (Josh & Emma Butler) and Woodward Meats all played a role in keeping the simmer going! It is also worth mentioning that a collaboration with the CCA team on an influencer panel for CBIC turned out to be a very cool and unexpected hit on our social channels thanks to the fantastic content creation by Apryl and Sarah of @ThisKindaLife and the generous hospitality of the Dibble family to tour them through their feedlot. It goes without saying that influencer work has been a big part of our success to this point. Overall, our social media results for 2021
were expected (e.g. Dennis’ Horseradish),
were fantastic. Our content – both organic
others were a little more unexpected (e.g.
>>>
BFO ANNUAL REPORT 2022
23
CONSUMER ENGAGEMENT
CONTINUED
and paid – made well over 19.6 million
Conan was talking about Ontario Beef
Education – Throughout 2021, we have
impressions, reached over 3.7 million
on his show! The ads were heard by over
continued to strengthen our relationship
users, delivered over 89K engagements,
675K listeners over the course of four
with AgScape to work on getting our
and drove over 82K website visits. We’ve
weeks. It was a successful first run, so we
beef messaging in front of students.
built great momentum and had some
will take the lessons learned and will likely
Throughout the spring and summer, we
excellent learnings that will help guide our
look to do this again in 2022.
worked with the AgScape team to create
Environmental Benefits of Ontario Beef
three curriculum-linked resources for
messaging and activity to keep building that energy in 2022.
PR Campaign – In September, we kicked
grades 7-12. Touching on various subject areas from health and physical education
Event Participation – One area of our
off a traditional public relations campaign
workplan that was affected again in 2021
aimed specifically at getting more good
was events. With all in-person events
news stories into the media about beef
cancelled for 2021, we contributed and
and beef farming’s positive impacts on
participated in a virtual capacity where
the environment. Since the campaign
applicable. As something new this year,
began, we have managed to land several
we sponsored Ontario Garlic Week, which
articles and interviews with outlets such
was a great virtual and restaurant-linked
as BNN Bloomberg, Reuters, Globe & Mail,
event that offered us the opportunity to
Hamilton Spectator and Canadian Small
partner with some new organizations and
Business Magazine, to name a few, and
get our messaging in front of some new
there are other pitches currently in the
resource.
audiences.
works. In addition to the earned media,
In addition to the resource, we have
Podcast Advertising – In November, we
we also ran two sponsored pieces with
increased our overall support for
MacLean’s magazine and the Toronto Star
AgScape to help enhance their Teacher
in late December, as well as an op-ed
Ambassador Program and translate
piece in early January. The campaign will
their offerings into French for use in the
continue through March 2022, so we hope
French language and French Immersion
to land a few more good pieces before the
classrooms. We will continue to work
opted for host-read ads, which means we
end of the campaign.
closely with AgScape to help them deliver
provided the hosts with some information
The PR campaign would not be possible
on their mandate to bring accurate and
and possible messaging, but the hosts had
without a number of producers and
the freedom to create the ads in their own
industry partners who have generously
voice and in a way that best fit within their
lent their time and expertise to
province.
show and appealed to their audience. Our
accommodate these media requests. We
Video and Photography – Despite the
Ontario Beef ads ran on Conan O’Brien
wish to extend a huge THANK YOU to
COVID-19 restrictions, we were still
Needs a Friend, Stuff You Should Know
all of the folks who have served as our
able to create some new video and
and Freakonomics Radio. Yes, that means
spokespeople.
photography assets. We completed a
tried our hand at advertising on podcasts. The statistics say that six in 10 listeners will take action on an ad they hear while listening to a podcast episode, which made a great case for trying it out. We
24
BFO ANNUAL REPORT 2022
to social studies, science, careers, and technology, these resources aim to provide an overview of the practices involved in the production of beef in Ontario from farm to table. The resource, An Exploration of Beef Farming in Ontario, was launched during Ontario Agriculture Week in October and AgScape has since had well over 250 requests for the
balanced information about farming and food production to classrooms across the
new environmental stewardship video
Promotional Items and Resources
While 2021 was another challenging year
featuring 2021 TESA winners Jackie Kelly-
– There continues to be a number of
for folks across the globe, it was another
Pemberton and Steve Pemberton, which
promotional items and resources available
very successful year for our Ontario
included a few short environmental clips
through the BFO office. Many of these items
Beef consumer engagement program.
to be used on social media. We were also
are well-suited for retail settings and events.
We look forward to carrying the same
able to capture some great on-farm shots
Contact the office if you are interested in
positive energy into 2022 with exciting
with the McKinlay and Millsap families in
materials for promoting Ontario Beef. In
new plans and continuing to build on our
the fall. This project was a collaboration
2021, two new resources added to the
2021 success. Be sure to sign up for the
with Canada Beef and has added a great
list were an Ontario Beef Farms and the
quarterly e-updates, follow Ontario Beef
selection of new images to our library.
Environment factsheet and a great one-
on social media, and visit our website
A big THANK YOU to Joan and Robert
pager for shoppers to pick up that includes
to keep up to date on our consumer
McKinlay and David and Tate Millsap for
a guide to selecting the right cut of beef as
engagement efforts.
letting us follow them around for the day
well as a beef doneness guide. Both are
to capture them in action!
also available through the office.
Our content received over 19.3 million impressions We reached over 3.7 million users Delivered over 89,000 engagements
BFO ANNUAL REPORT 2022
25
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM BY JIM CLARK | CEO, Ontario Beef Market Development Program The second year of our initial four-year
of three BFO and three OCFA Directors)
Ontario Beef Market Development strategy
is fully supportive of our ongoing efforts.
(2020-2023) started out with a strong
The committee is responsible for oversight
sense of optimism after the devastation
of the program and provides the overall
caused to the beef industry by the
direction on strategy and budget.
coronavirus pandemic in 2020.
Developing new markets can take some
Unfortunately, that optimism was quickly
time and lots of effort, even the local
replaced by the reality that the pandemic
Ontario market where we face very stiff
was worse than anything this generation
competition from many domestic and
has witnessed and was clearly not behind
import competitors takes time. There are
us. In fact, we were in for an even tougher
currently 38 projects underway in our
year with challenges, including the cattle
active project portfolio in various stages
backlogs caused by late 2020/early 2021
of completion from initial draft concepts,
shutdown of the Cargill Guelph facility;
advanced discussions to ongoing support.
the operational challenges all plants have
25 of those projects are focused on the
faced; the severe limitations and ultimate
Ontario market with another 13 projects
shutdowns in the foodservice and catering
being implemented in 10 export markets.
sectors; and a retail sector still locked into
Projects are being completed by various
a steady focus on operational capabilities.
sectors within the industry including
These pandemic-related challenges
retail, foodservice, processing, packers,
have had a tremendous impact on the
producers, industry associations and
industry as a whole and certainly on our
academic institutions.
ability to develop new supply chain based
Many of these projects include working
branded Ontario beef programs. We
with Ontario packers, both federal and
continue to chat with industry to identify
provincial, to enhance their ability to
future opportunities once the worst of
market Ontario beef. Some of that work is
the pandemic has been overcome. We
focused on developing supply of cattle and
are fully engaged with industry partners
verification processes, providing technical
and maintain our ability to capitalize on
support and establishing supply chain
opportunities that will ultimately arise.
connections with end-use customers. The
Although the fixed costs to run the
active project portfolio is reviewed with
program remain a constant, it is important
the Joint Marketing Committee at their
to maintain our connections to industry and
quarterly meetings.
be well positioned for the next two years of our four-year strategy, once the critical phases of the pandemic have passed.
The priority focus in 2021 was on existing partners and maintaining their commitment to Ontario beef and protecting Ontario beef’s share of the marketplace.
The Joint Marketing Committee (comprised
26
BFO ANNUAL REPORT 2022
Increasing the Share of Ontario Beef in the Ontario Market Even under this extremely challenging environment, one very exciting new partnership was established in 2021. The Butcher Shoppe, a Toronto based operation, has started the process to develop a supply chain for a high-quality Ontario beef program. The Butcher Shoppe is a market leader in wholesale distribution and the processing of high-quality beef products for the foodservice sector in Ontario. As a family owned and operated company, Stacey Weisberg said, “At The Butcher Shoppe, we focus on quality, staying true to traditional methods and having a personal approach in everything that we do, so when the opportunity with Ontario beef came up, we knew there was great potential. We look forward to working with Ontario beef to develop a supply chain in order to offer a brand of high quality, locally produced beef for our customers.”
The partnership with The Butcher Shoppe provides an opportunity to consistently supply Ontario beef to the high-end steakhouse sector, as well as the chain restaurant sector. We are excited to support The Butcher Shoppe to bring a high-quality brand of Ontario beef to their product line in 2022. Visit their website at www.butchershoppe.com to learn more about them. We are fortunate to have committed retail and foodservice partners who have maintained their commitment to Ontario beef throughout the pandemic and the various challenges it has created. We continue to focus on providing support to those partners in the retail and foodservice sectors who have stood by Ontario beef farmers and maintain their brand commitments. One of those partners is Flanagan’s Foodservice, who maintains a strong commitment to their Carve, Premium
interest. It’s never been more important
there are many sites active on social
to support local and create another touch
media, following the trend created by our
point for Ontario beef,” shared Jackie
marketing efforts and promoting locally
Oakes, Senior Marketing Manager.
produced Ontario beef on their own.
The campaign features an interactive component for consumers to learn more about beef production in Ontario, and was financially supported through our Collaborative Partnership Program, which provides matching funding to branded marketing initiatives. This program enables us to leverage industry investment of check-off funds.
Regional Brand Marketing While the priority focus is to develop large scale programs that deliver the highest return on check-off investment, which benefits a broader producer base, we have maintained programs that serve producers who are interested in marketing direct to consumers. The Regional Brand Marketing
Loblaws continues to be the retail leader
Program provides technical support to
in their commitment to the Ontario Corn
producers. It also makes cost shared
Fed Beef brand. Loblaws and their affiliate
funding available to small scale producers
banners (Zehrs, Real Canadian Superstore,
who are interested in marketing activities
Loblaws) utilize a feature ad that appears in
to support their Ontario beef sales.
their digital flyer showing their commitment
The program has been communicated
to Ontario Corn Fed Beef and their support
throughout various BFO communications
for Ontario beef farmers. Banners including
and details are available on the BFO
Valu-mart and Your Independent Grocer
website under Programs.
continue to include the Ontario Corn Fed
Many farm-based operations also include
Ontario Beef program. With the restaurant
Beef logo in their weekly flyers.
sector being severely limited due to
Additionally, Vince’s Markets continues
pork, poultry and lamb which make it
to highlight their brand of Ontario beef,
difficult to qualify for beef check-off funding
Vince’s Angus Reserve – Ontario Beef
support as check-off dollars can only
Independent retailers continue to support
directly support beef marketing initiatives.
local Ontario beef with point-of-sale
The program is available to farm-based
materials available through the Ontario
sellers and smaller scale farm markets.
Beef Market Development Program and
In 2021, there were four producers who
the ontbeef.ca website.
requested more information on the program,
The growth in online sales of beef through
while only one project applied for funding.
coronavirus restrictions, the relaxing of some of the restrictions in late summer was a welcomed sight. Flanagan’s promoted their commitment to Ontario beef through a social media campaign with restaurants across the province. “We are so pleased with the campaign results. To be able to increase awareness of Ontario beef across the province, benefits everyone. From the farmers and producers to the Flanagan customers and guests, it can help generate demand and
other animal protein species including
consumer direct websites has been increasing rapidly. While there are no industry statistics to quantify the growth,
>>>
BFO ANNUAL REPORT 2022
27
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM Engagement with Industry
increased by 512 per cent since 2018, and projects continue to grow as more
Tradeshows provide an opportunity to engage with key industry representatives. Although all trade events have been held as virtual events due to COVID-19, they still provide an opportunity to engage with key decision makers and influencers. In 2021, we participated at the Grocery Innovations Canada event, as well as the Meat & Poultry Ontario Expo. These events provide access to key decision makers in the retail and processing sectors and an opportunity to enhance their awareness of Ontario beef and introduce supply chain possibilities. Ontario Beef was also a primary sponsor of the Ontario’s Finest Butcher Competition. This annual event has grown to 18
highlight the uniqueness and overall quality of Ontario beef.
quality assurance program can provide many opportunities for financial incentives
Q1 Q2 Q3 Q4
sustainable operations has
28
per cent increase over the past five years
certified under the Verified Beef Production
Based on the $3 per head credit paid
Plus (VBP+) program.
by packers, the program generated an
In 2021, the Ontario Beef Market
additional $991,671 to participating producers
Development Program provided funding
through their participation in the program.
to BFO to support the Ontario Beef Quality
Combined, the two Ontario quality
Assurance Rebate Incentive Program to
assurance programs have generated over
increase cow-calf participation. Throughout
$1 million in additional revenue to Ontario
the year, we saw consistent increases
producers, which is over and above the
in cattle certified to meet Canadian
revenues generated by cattle sales.
certified beef means the opportunity for producers to capture value for CRSB
eligible cattle, as well as the value of financial credits paid to producers by quarter. In 2021, over $93,302 of additional value has been created by producer participation in quality assurance programs.
Engagement with Ontario Packers The Ontario Beef Market Development team maintains active engagement with many Ontario packers including federal and provincial inspected plants to provide market insights and technical assistance that enhance their operations. Some examples of interaction include: consultation on sourcing of funding for expansion opportunities, access to foreign worker programs, regulatory issues, supply chain development, innovative cutting techniques, carcass yield analysis and carcass utilization.
Eligible Cattle Producer Head Movements Credits Per/Hd
increase purchases of certified
demand for beef from certified
Assurance Program. This represents an 18
CRSB Eligible Cattle and Producer Credits Paid in Ontario
a long-term commitment to
beef farmers. Cargill reports
under the Ontario Corn Fed Beef Quality
and 123 per cent over the past 10 years.
The table below shows the number of
Ontario Beef Market Development Program. Producer participation in a recognized
In 2021, 330,577 head of cattle were certified
fed cattle increases demand for calves
sectors of cattle production.
This is one of the strategic objectives of the
huge opportunity for Ontario
Increased demand for certified sustainable
eligible cattle continues to increase in all
Adding Value to Ontario Beef Through Quality Assurance
Beef program, providing a
assurance program from birth-to-finish.
The increase in market demand for CRSB
resources to the competitors which
through the Ontario Corn Fed
be registered in an approved quality
directly to producers in Ontario.
interact with and provide educational
sustainable beef sourced
order for cattle to qualify, all cattle must
standards and increases in credits paid
The event provided an opportunity to
Loblaws recently announced
customers commit to the program. In
Growth in the Ontario Corn Fed Beef Program
Roundtable for Sustainable Beef (CRSB)
competitors from all across the province.
based on market demand.
CONTINUED
BFO ANNUAL REPORT 2022
YTD Paid Out
Increasing Share of Ontario Beef in Export Markets In 2021, a new retail partner in the U.S.
601
1,074
$ 18.29
$19,643.46
734
1,139
$18.23
$20,763.97
operates four outlets in Pennsylvania and
828
1,530
$19.50
$29,835.00
has committed to sourcing its premium
727
1,153
$20.00
$23,060.00
2,890
4,896
$93,302.43
was established. Stauffer’s of Kissel Hill
beef program from Ontario. Promotional events including in store sampling were supported to drive awareness.
Trade events in many major export markets were once again cancelled due to COVID-19. We had full intentions of participating in events in Korea, Vietnam, Singapore and Taiwan, but unfortunately, we were unable due to travel restrictions.
hotel restaurants rated in Tokyo. Having Ontario beef featured on the menu of such a prestigious steakhouse is a tremendous reflection of the quality Ontario beef is recognized for in Japan. It
• Ontario beef exports have increased by 19 per cent in volume and 27.5 per cent in value for the period January to November. • Ontario beef exports to Japan in 2021
is the result of the relationships that have
increased by 17.5 per cent in value and
Ontario Beef was able to participate in
been developed in Japan. Our ability to
29 per cent in kilogram volume for the
three events throughout Japan at the
engage with the chefs and distribution
period January to November compared
Foodex, Supermarket Trade Show and the
partners to create an awareness and
to the same 2020 time period.
Foodservice Business Week in partnership
appreciation for the quality of Ontario beef
with Canada Beef, the Canadian Embassy and
is the key to our success.
the Trade Commissioner Service in Japan. These events provide access to key decision makers and influencers in our priority export market. In 2021, were able to secure three new retail partners to feature the newest brand of Ontario beef, Ontario Heritage Angus Beef. This brand, which was originally launched in Japan in 2020, has generated a lot of interest in the retail and foodservice sector at these events. Summer promotional events in the retail supermarkets were once again unable to include in store sampling as a method to promote product. The Ontario Beef team worked with five retail chains across Japan on a summer promotional campaign that featured a contest with prizes, including branded summer items like drink coolers and aprons that consumers could win with the purchase of Ontario beef.
Ontario Beef on the Menu at Prestigious Tokyo Steakhouse The Oak Door Steakhouse, located in the Tokyo Grand Hyatt Hotel, now proudly
Export Market Challenges
Wagyu and USDA beef products. The Oak Door Steakhouse is one of the highest star
increased by 258 per cent in volume and 270 per cent in value since 2016.
While we continue to see strong growth in exports of Ontario beef, we also have experienced several significant setbacks in accessing key export markets in 2021. In December, CFIA announced the finding of an atypical case of BSE in Canada, resulting in the closure of key Ontario beef export markets including South Korea and The Philippines (China was also closed but at this time, no Ontario plants have been shipping to China). The floods that devastated British Columbia in late 2021 also had a significant impact on all Canadian beef exports shipped via the Port of Vancouver. On top of the port challenges, the CN rail line that ships products east to west to the port was also significantly impacted. These issues caused severe backlogs in product shipments to key export markets in November and December. We continue to work with our valued partners to mitigate the impact of these challenges
• Export volumes to other markets also saw significant increases. In each of these markets, Ontario beef has actively participated over the past two years, aligning Ontario packers with end use customers and creating an awareness in the market for Ontario beef. South Korea +70%
where possible.
Taiwan + 14%
Market Indicators
United Arab Emirates + 24%
features Ontario beef on their menu alongside high-quality local Japanese
• Ontario beef exports to Japan have
Ontario Beef Export Volumes Continue to Grow.
Vietnam + 113% Export volume to The Philippines increased by 213,000 kilograms (0 in 2020).
BFO ANNUAL REPORT 2022
29
ONTARIO BEEF MARKET DEVELOPMENT PROGRAM Export markets are an important
CONTINUED Performance measures listed on page 31
PROJECT EXPENSES
consideration as they contribute over $900 or 40 per cent of the value of a fed carcass according to the latest data from Canfax Research Services. Export markets provide significant opportunities to increase the
Annual budget of $1,045,000 was based on BFO projections. The Ontario Beef Market Development Program is funded by $1.25 of producer check-off investment in Ontario. Actual expenses in 2021 totaled
overall value of Ontario beef carcasses.
affect the competitiveness and long-term viability of the Ontario cattle industry. As per the agreement between BFO and the Ontario Cattle Feeders’ Association, a comprehensive third-party assessment of
$838,834.25.
Ontario Federal & Provincial Processing Volumes
are designed to measure key factors that
results generated against the performance
Expenses include marketing and
measures will be provided to determine
promotions, program implementation,
return on investment of the $1.25 per head
project management/contracted services,
of Ontario check-off funding allocated to
market intelligence/data services, and
the program.
administration.
After the analysis of the performance
The Ontario Beef Market Development
measures at the end of 2023, a decision
strategy will be evaluated annually for
will be made to continue with the strategy,
return on check-off investment, including
make revisions to the strategy, or cancel
project deliverables, expenses and market
the strategy and reallocate the funding to
indicators. There will be a comprehensive
other marketing initiatives.
review of all performance measures at the end of 2023. Program Expense
2021
Activity
2021 Budget YTD
YTD Expenses
Domestic Market Development
$ 175,000.00
$ 175,730.87
Global Market Development
$ 175,000.00
$ 104,377.35
Regional Brand Programs
$ 20,000.00
$ 839.59
Quality Assurance Program
$ 50,000.00
$ 37,658.34
Promotional Materials
$ 40,000.00
$ 1,014.87
Trade Missions
$ 35,000.00
Travel
$
-
$ 15,000.00
$ 9,348.73
Total Program Expense
$ 510,000.00
$ 328,969.75
Total Overhead Expense
$ 535,000.00
$ 509,864.50
$ 1,045,000.00
$ 838,834.25
Total Expense
30
BFO ANNUAL REPORT 2022
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 quality
Harmonization of Ontario QA program(s)
Assessment of Ontario QA program(s)
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 industry
Ontario slaughter volumes
Independent assessment of cattle market impact
Increased Ontario slaughter cattle volumes
Slaughter cattle population
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 2022
31
COMMITTEE REPORTS BFO Cow-Calf Committee Submitted by Don Badour, Chair The BFO Cow-Calf Committee met a week after the virtual 2021 BFO AGM to elect its chair, vice chair and crossover rep to the Feedlot Committee. The results of those elections were: Don Badour (Chair), Blair Williamson (Vice Chair) and Kirby Hakkesteegt (Crossover Rep) Also, new in 2021 we introduced the appointment of two committee members to join the BFO Governance and the Government Relations Committees. Blair Williamson was selected to represent the Cow-Calf Committee on the Governance Committee and Sandra Vos was selected to represent the committee on the Government Relations Committee. All meetings were held virtually in 2021. A summary of committee actions and recommendations has been provided for your review below. • The committee reviewed the creation of the Ontario Beef Quality Assurance Rebate Incentive Program, and later
experiences with deadstock and what solutions would benefit cowcalf producers to address the lack of deadstock capacity. • Committee members provided feedback on BFO’s “Rural Ramble on the Road” series. • The committee provided comments on CCIA changes to its age identification policy and ability to change birthdates on tags that have not yet been used. • The committee received various updates through the year on a number of topics, including: BRM/AgriStability, Cow-
• The committee was consulted during the development of BFO’s submission for the Next Agricultural Policy Framework. • Committee members provided feedback
Development Program, OSCIA, Bill 156, Forage Insurance Pasture Satellite project and the Northwest Hay Initiative. The Cow-Calf Committee was grateful for the support shown by the BFO Board of Directors through this challenging year. All members were grateful for the opportunity to share their experiences and have the ability to meet and discuss issues related to the cow-calf sector.
BFO Feedlot Committee Submitted by Scot Legge, Chair The BFO Feedlot Committee met following the AGM in February 2021 to elect the Feedlot Committee chair, vice chair and representative to the Cow-
Alliance and how youth members would
Calf Committee, and were provided an
engage with the committee.
update on BFO’s lobby activities. At the
32
BFO ANNUAL REPORT 2022
Blair Williamson (Vice Chair) Joe Dickenson (Feedlot Rep)
Jason Hurst Jason Leblond Nickolas Martin Steve Thede Lyndon Wagenaar
Kirby Hakkesteegt Sandra Vos Don Hargrave appointed representatives to the BFO Governance Committee and the BFO Government Relations Committee, as well as received a presentation on the results from the Canadian Integrated Program for Antimicrobial Resistance Surveillance Feedlot Cattle 2019 Industry Report, and reviewed and discussed the resolutions that came from the AGM. The committee held two more meetings where members were provided updates and discussed the
on the creation of the Ontario Beef Youth
• Committee members shared their
Don Badour (Chair)
Calf Management School, Beef Youth
recommended to the board that the program be extended into 2022.
2021 Cow-Calf Committee
April committee meeting, the committee
Ontario Beef Quality Assurance Rebate Incentive Program, the BFO resolution pertaining to Agricorp’s corn silage conversion formula, the Next Agricultural Policy Framework, CFIA’s proposed feed regulation updates, boxed beef price reporting, and received an update from the Canadian Cattlemen’s Association on trade, transport regulations, M-COOL and SRM policies.
A summary of committee actions and recommendations has been provided for your review below. • The committee established a subcommittee to help guide efforts to update the Agricorp silage conversion formula and communicate with Agricorp the concerns of producers. • The committee was consulted during the development of BFO’s submission for the Next Agricultural Policy Framework. • Committee members provided feedback and comments to include in BFO’s submission to CFIA on the proposed amendments to the federal feed regulations. • The committee reviewed the creation of the Ontario Beef Quality Assurance Rebate Incentive Program.
2021 Feedlot Committee Scot Legge (Chair) Scott Cochrane (Vice Chair)
Kirby Hakkesteegt (Cow-Calf Rep) Jairus Maus
Bob Bennett
David Millsap
Jack Chaffe
Darrell Russett
Joe Dickenson
Matt Shortreed
Steve Eby
BFO ANNUAL REPORT 2022
33
ONTARIO BEEF BREEDER CO-OPERATIVE PROGRAM The eight Breeder Loan Program co-
to range between co-ops from $16,350 to
As we head into 2022, we appreciate that
ops across Ontario have continued to
$47,550 per member.
some parts of the province have limited feed
The Breeder Loan Program as we know it
supplies, which will probably limit activity for
operate with a typical business pattern as experienced in the past. Five co-ops saw an increase in business during 2021 and one remained the same. The largest co-op is financing 110 members and generates about 40 per cent of the provincial activity.
today was in its infancy 19 years ago with several co-ops getting organized in the fall of 2002. It is only in the last 10 years that the program has flourished, providing an opportunity for young producers to start
The average number of females financed
cow herds and seasoned producers to
per member increased from 29 to 31 and
expand their herds. In the last 10 years
the average loans per active member
there has been over 22,000 head of cattle
increased by about $3,000. Loans continue
financed by the co-ops.
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
34
BFO ANNUAL REPORT 2022
a few co-ops. We did have strong calf prices this past fall and Canfax has some optimism for the industry. Canfax quoted in late November to “expect higher calf and feeder prices next year and possibly for the next two or three years as cattle numbers shrink across North America, and beef demand remains very strong.” As the saying goes, only time will tell.
BEEF BREEDER CO-OP ADMINISTRATORS BRUCE-GREY BEEF COW FINANCE CO-OP Conrad Brubacher (Grey/Bruce) 519.934.2666
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 Gwen Thirlwall (Carleton/Lanark/Renfrew) 613.809.0660
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, Padgett Business Services (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
2021
2020
2019
2018
2017
Number of members
357
374
403
396
382
Number of active members
317
362
365
359
350
Total cow inventory
9,738
10,380
10,656
10,019
9,387
Total principal outstanding (million)
$10.8
$12.1
$12.6
$13.4
$12.9
Average # of females per active member
31
29
29
28
27
# of new members in first 6 months of year
21
19
26
29
26
906
1,212
1,136
1,346
1,312
# of females purchased in first 6 months
BFO ANNUAL REPORT 2022
35
ONTARIO FEEDER CATTLE LOAN GUARANTEE PROGRAM A year ago, we were slowly working through
On October 7, the program received
cattle; limiting the impact of the guarantee;
the aftermaths of a COVID-19 outbreak at
amendments that dealt with two items.
and the delivery of other programs by co-ops.
the Cargill Guelph facility. One year later, we
First, the number of loans allowed per
continue to operate with a pandemic cloud
member and second, an emergency
The program had lots of activity in 2021.
hanging over us and its potential impact on
declaration. Moving forward, co-ops
our operations, families, communities and
need to negotiate with their lender as to
processing industry.
the maximum number of loans they are
2021 was a year of taking care of business.
allowed to offer their membership. There
In February, OMAFRA began consultations for the five-year review of the Ontario Feeder Cattle Loan Guarantee Program of which BFO staff, BFO’s Feeder Finance Executive Committee, lenders to the program and some individuals from the individual co-ops have been participating in. Several issues were identified that required amendments for the long-term benefit
is now authorization and protocols in place for Ontario’s Minister of Agriculture, Food and Rural Affairs to allow for a modification of repayment timelines in the event of a significant event that is beyond the control of the members. Some items listed include natural disaster, disease, decrease in processing capacity, or closure of provincial or international borders for cattle
of the program and its members. As the
moving out of Ontario.
summer ended, OMAFRA proposed that the
BFO’s Feeder Finance Executive Committee
changes be dealt with under a Phase 1 and
and staff continue to negotiate for an
2 approach, and more recently it has been
increased loan limit to $1 million per member;
stretched out to include Phases 3 and 4.
clarifications with regards to the legal, equitable and beneficial ownership of the
It purchased just over 100,000 head of cattle which is the highest in the past 10 years. Unfortunately, we did have West Central Co-op transfer its members to two other co-ops and formally cease operations due to expected lack of financial viability. On a positive note, we welcomed three new administrators and one supervisor to the program. The interest free component of the Advance Payments Program, which is offered by BFO via the feeder co-ops continues to be popular with about 35 per cent of the membership participating. The average interest amount paid by the federal government on behalf of the participating members in 2021 was $1,376 for a total support to our participating membership of $395,000 in 2021.
PROGRAM STATISTICS 2021
2020
2019
2018
2017
Number of Co-ops:
15
16
16
16
16
Total Membership:
759
795
802
804
806
During Year
697
724
749
757
730
As of December 31
577
600
599
611
622
Under Age 40:
223
256
244
270
292
Purchased in Year
103,572
96,529
92,748
95,265
97,466
Sold in Year
98,302
92,482
93,363
94,434
95,056
76,113
75,013
70,891
71,337
70,998
$104.8M
$102.5M
$95.3M
$97.7M
$98.3M
$107.1M
$106.1M
$98.6M
$101.4M
$105.1M
$139.8M
$134.5M
$125.7M
$136.3M
$126.8 M
Active Members:
Number of Cattle
On Hand, December 31:
Financial Outstanding Loans, December 31: Total Amount Committed, December 31: Total Loans Advanced During Year
36
BFO ANNUAL REPORT 2022
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 2022
37
Replacement Steers 1,000 lb + Ontario Average Monthly Price
Replacement Steers 1000 lbs + 2019
Price per hundred weight
195.00
Ontario Average Monthly Price 2020
2021
5 year Avg 2016-2020
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
Ontario Average Monthly Price
2019
2020
2021
5 year Avg 2016-2020
Price per hundred weight
235.00 225.00 215.00 205.00
38
BFO ANNUAL REPORT 2022
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.
2021
2020
2019
2021
2020
2019
January
164.24
176.07
178.78
212.33
222.26
210.05
February
170.71
175.88
172.95
227.83
225.67
205.67
March
162.32
162.00
166.72
221.09
212.05
198.88
April
164.43
155.06
164.17
229.04
215.54
220.72
May
160.89
168.60
163.87
222.48
230.62
216.34
June
167.15
166.06
157.66
221.47
234.73
207.46
July
166.53
167.96
163.88
205.66
220.65
198.66
August
180.93
175.94
175.46
224.76
221.54
207.49
September
184.88
176.54
170.83
224.72
224.35
206.36
October
184.00
178.67
170.62
220.67
217.07
209.01
November
185.76
171.31
178.06
210.72
217.51
209.84
December
193.51
169.07
173.79
209.87
208.85
216.02
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
2017
2018
2019
2020
2021
251,185
243,835
258,755
244,940
237,298
BFO ANNUAL REPORT 2022
39
Ontario Beef Cows Monthly Average Price - Live
Ontario Beef Cows- Monthly Average Price - Live 95.00
Average price cwt
90.00 85.00 80.00 75.00 70.00 65.00 60.00
2019
55.00
2020
2021
50.00
Ontario Auciton Markets Number of Head Sold
130,000
40
110,000 90,000 70,000 50,000 30,000 10,000 -10,000
2019
2020
2021
Total
124,599
123,712
124,493
Dairy
97,815
99,913
100,809
Beef
26,757
23,801
23,684
BFO ANNUAL REPORT 2022
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Annual Cow Volumes Sold Through Auction Annual CowOntario Volumes Sold Markets Through
Beef Cow Volumes On Ontario Farms
Beef Cows On Ontario Farms
Total number of head
280,000 270,000 260,000 250,000 240,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
Jan
Jul
220,000
Jan
230,000
2021
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
2017
2018
2019
2020
2021
Steers
419,877
427,646
434,563
417,710
416,253
Heifers
136,700
137,563
148,747
137,835
141,582
Cows
100,615
114,469
103,989
93,438
104,841
Data Source- Canfax/CBGA
2021 totals are preliminary
BFO ANNUAL REPORT 2022
41
Ontario Railgrade Steers Average Monthly Price
Ontario Railgrade Steers Price per hundred weight
Average Monthly Price
2019
275.00
2020
2021
5 year avg- 2016-2020
265.00 255.00 245.00 235.00
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
225.00
Ontario Live Fed Steers Average Monthly Price
Ontario Live Fed Steers Average Monthly Price
Price per hundred weight
160.00 155.00 150.00 145.00 140.00 135.00 130.00 125.00
42
2019 Jan
Feb
BFO ANNUAL REPORT 2022
2020 Mar
Apr
2021 May
Jun
5 Yr Avg- 2016-2020 Jul
Aug
Sep
Oct
Nov
Dec
Monthly Average Warm Carcass Weight Steers Monthly Average Warm Carcass Weight Steers Ontario
Canada
Month
2021
2020
2019
2021
2020
2019
January
990
968
972
936
908
936
February
983
964
969
920
909
919
March
978
957
967
928
911
915
April
971
958
964
927
911
907
May
982
940
962
899
909
877
June
944
912
937
872
875
868
July
930
912
913
889
882
881
August
930
922
923
904
908
911
September
942
937
941
933
932
925
October
943
950
951
949
952
932
November
947
956
965
939
953
930
December
946
968
972
941
938
920
Data Source: Canfax/CBGA
Monthly Average Warm Carcass Weight Heifers Monthly Average Warm Carcass Weight Heifers Ontario
Canada
Month
2021
2020
2019
2021
2020
2019
January
878
867
867
856
833
858
February
875
872
873
858
840
847
March
872
868
862
860
853
848
April
873
859
856
858
840
851
May
856
837
854
838
858
821
June
851
825
829
805
821
791
July
830
824
816
808
801
807
August
820
817
813
817
822
828
September
813
825
833
829
847
842
October
824
827
836
851
866
849
November
818
841
848
846
852
849
December
833
852
866
838
855
834
Data Source: Canfax/CBGA
BFO ANNUAL REPORT 2022
43
Ontario/Alberta Fed Steer Price Spread Dressed Basis Ontario/Alberta Fed Steer Price Spread -Dressed Basis $20.00
per hundred pounds
$10.00 $0.00 -$10.00 -$20.00
wk 49
wk 51
wk 49
wk 51
wk 47
wk 45
wk 43
wk 41
wk 39
wk 37
wk 35
wk 33
5 year Avg- 2016-2020
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
2021 wk 1
-$30.00
Data Source: Canfax/BFO
Ontario/U.S. Fed Steer Price Spread Dressed Basis Ontario/U.S. Fed Steer Price Spread -Dressed Basis
$40.00
per hundred pounds
$30.00 $20.00 $10.00 $0.00 -$10.00
Data Source: USDA/BFO
44
BFO ANNUAL REPORT 2022
wk 47
wk 45
wk 43
wk 41
wk 39
wk 37
wk 35
wk 33
wk 31
5 year Avg- 2016-2020 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
2021 wk 1
-$20.00
Canadian Beef Imports and Exports Canadian Beef Imports and Export
Total Beef Imports
Beef Imports from US
Beef Imports Non-Nafta
Beef Exports
500,000 450,000 400,000 Tonnes
350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
2017
2018
Data Source: Agriculture & Agri Food Canada 2021-Imports- Jan 1- Jan 1,22 2021-Exports Jan 1- Nov 30, 2021
2019
2020
2021
Ontario Exports of Beef Products to All Countries Ontario Exports of Beef Products to All Countries 105,000,000
Total Kilograms of Product
100,000,000 95,000,000 90,000,000 85,000,000 80,000,000 75,000,000 70,000,000 65,000,000 60,000,000 55,000,000
2017 United States of America
Japan
2018 Korea, South
Source: Statistics Canada, Prepared by AAFC/MISB/AID/Redmeat Section
2019 Hong Kong Mexico
2020 Viet Nam
Peru
2021 (Jan - Nov) Taiwan others
2021 - January to November Only.
BFO ANNUAL REPORT 2022
45
CANADA
Youthful Cattle Beef Grade Distribution 2021 CANADA Federally Inspected Plants Distribution Youthful Cattle Beef Grade Grade Distribution 2021 Canada – Youthful Cattle Beef 2021 Percent Federally Inspected Plants Federally Inspected Plants - Percent Quality Yield Group Total Percent Grade Quality Yield Group Total Y1 Y2 Y3 Y4 Y5 Grade A Prime Y1 Y2 Y3 Y4 Y5 0.05 0.85 1.78 1.00 0.38 4.06 A AAA Prime 0.05 0.85 1.78 1.00 0.38 4.06 4.06 28.19 25.57 6.98 1.73 66.53 AAA AA 4.06 28.19 25.57 6.98 1.73 66.53 6.82 14.26 4.40 0.70 0.10 26.29 AA A 6.82 14.26 4.40 0.70 0.10 26.29 1.11 0.38 0.06 0.01 0.00 1.55 A B1 1.11 0.38 0.06 0.01 0.00 1.55 0.12 B1 B2 0.12 0.03 B2 B3 0.03 0.17 B3 B4 0.17 1.25 B4 Total 1.25 12.05 43.68 31.81 8.68 2.21 100.00 Total No. head graded:2.21 2,760,153 100.00 12.05 43.68 31.81 8.68 No. head graded: 2,760,153
ONTARIO Youthful Cattle Beef Grade Distribution 2021 Ontario – Youthful CattleONTARIO Beef Grade Distribution 2021 Federally Plants Youthful Cattle BeefInspected Grade Distribution 2021
Quality Grade Quality Grade A Prime A AAA Prime AAA AA AA A A B1 B1 B2 B2 B3 B3 B4 B4 Total Total
FederallyFederally Inspected Plants Percent Inspected Plants- Percent
Y1 Y1 0.02 0.02 1.16 1.16 5.19 5.19 0.63 0.63
Yield GroupPercent Yield Group Y2 Y3 Y2 Y3 0.83 2.26 0.83 2.26 26.64 28.00 26.64 28.00 12.34 3.71 12.34 3.71 0.10 0.00 0.10 0.00
7.00 7.00
39.92 39.92
33.96 33.96
Note: Based on gradings in federally inspected plants. Note: Based on gradings in federally inspected plants.
Y4 Y4 2.19 2.19 11.34 11.34 0.69 0.69 0.00 0.00
Total Total Y5 Y5 0.88 0.88 2.56 2.56 0.09 0.09 0.00 0.00
6.18 6.18 69.69 69.69 22.01 22.01 0.74 0.74 0 0 0.02 0.02 0.02 1.27 1.27 14.22 3.52 100.00 No. head graded: 14.22 3.52 508,977100.00 No. head graded: 508,977
Mature Cattle Grade Distribution 2021
Mature Cattle Beef Inspected Grade Distribution 2021 Federally Plants Federally Inspected Plants - No. of Head No of Head D1 D2 D3 D4 E Total head graded
Ontario 8,752 35,557 30,117 1,790 47 584,240
Canada 13,262 220,961 125,567 9,988 13,028 3,142,959
Total head ungraded
24,256
115,788
(includes youthful and mature cattle) (includes youthful and mature cattle)
Note: Canada adopted the US yield grade criteria for youthful cattle in January 2020.
46
DataANNUAL Source:REPORT CBGA/Graeme Hedley BFO 2022
Canadian LiveCanadian Cattle Imports and Exports – U.S. Live Cattle
Imports and Exports - U.S.
800,000
Imports into Canada
Exports from Canada
Number of head
700,000 600,000 500,000 400,000 300,000 200,000 100,000 0
2017
2018
2019
2020
2021
Data Source: Agriculture and Agri Food Canada 2021-Imports- Jan 1- Nov 30
Ontario Live Cattle Exports to the U.S.
70,000
Ontario Live Cattle Exports to the US
Number of Head
60,000 50,000 40,000 30,000 20,000 10,000 0
2017
2018
2019
2020
2021
Steers
9,796
6,372
6,207
5,329
7,794
Heifers
20,192
24,154
31,931
22,514
17,039
Cows
47,146
51,887
51,310
68,767
44,748
Data Source:Canfax/Statistics Canada
2021 values are from Jan 1-Nov 30, 2021
BFO ANNUAL REPORT 2022
47
48
BFO ANNUAL REPORT 2022
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 2022
49
BEEF CATTLE RESEARCH COUNCIL Beef Producer National Check-Off Investments in Research The Beef Cattle Research Council (BCRC) is Canada’s industry-led funding agency for beef, cattle and forage research. The BCRC is led by a 14-member Council, comprised of 13 producers and one member at large, and is funded in part through a portion of the Canadian Beef Cattle Check-Off. In 2020/21, the BCRC received on average $0.67 of every $2.50 of the Canadian Beef Cattle Check-Off collected by provinces. This funding was leveraged with Agriculture and Agri-Food Canada (AAFC) Canadian Agricultural Partnership Beef Cluster funding, where industry contributed 26% ($1.16 million) and government contributed 74% ($3.27 million). The BCRC leveraged other
supporting increased productivity while
is a $21.7 million program, with AAFC
Canadian Beef Cattle Check-Off dollars with
building upon the sector’s leadership
contributing $14.1 million and BCRC and
an additional $3.4 million in research funding
in environmental, social and economic
industry partners contributing a total of $7.6
from government and industry partners
sustainability. Visit BeefResearch.ca for a
million over the five years.
through initiatives outside of the Cluster.
full strategy overview.
Most of the multi-year research projects are underway, with a few finishing in 2022. Preliminary findings of the 27 Cluster projects the BCRC manages include: • increased productivity in mid-rotation native forested rangeland sites through an integrated forage, cattle and timber management approach, • new alfalfa varieties better able to tolerate adverse weather conditions, and • rotating classes of antibiotics used in
Renewed Five-Year Canadian Beef Research and Technology Transfer Strategy
feedlots may help maintain effectiveness rather than relying solely on macrolides.
The BCRC and its industry partners
A summary of Cluster projects is available
released a renewed Five-Year Canadian Beef Research and Technology Transfer Strategy in July 2021 to efficiently and collaboratively target funding toward high-priority beef research and extension objectives. The strategy complements the National Beef Strategy’s 10-year goals,
50
BFO ANNUAL REPORT 2022
in the 2020/21 BCRC Results Report.
Beef Science Cluster III in Year Four of Five Projects funded under the Canadian Agricultural Partnership Beef Cluster III run April 1, 2018, to March 31, 2023. This
Priority Research Projects Underway In addition to Cluster projects, the BCRC funds research projects aimed at achieving
specific high-priority beef industry goals.
dollars leveraged with government and/or
One example is a joint project of the
industry partner funding, with some funded
University of Guelph and the University of
solely by private industry.
Saskatchewan to evaluate the performance,
Examples of BCRC-funded POC projects
economic and environmental benefits of
include:
biochar supplementation in beef cattle grazing
• studying chemical-free sanitizers to prevent
systems. Biochar, a charcoal produced by burning organic material, has been shown to reduce methane emissions in ruminants. With little Canadian-specific research available, this trial should provide producers evidence to
E. coli contamination and reduce food waste, • intercropping corn and legumes for highprotein winter grazing and • evaluating feedlot water bowls for
decide if feeding biochar could be economical
pen-level surveillance of antimicrobial-
to improve efficiencies or reduce methane
resistant bovine respiratory pathogens.
emissions in cows on pasture.
Project summaries are available at
Another research project underway explores
BeefResearch.ca.
using harvested high-moisture corn kernels and whole-cob snaplage as nutritional sources for growing and finishing cattle. University of Saskatchewan’s Dr. Bart Lardner and Kathy Larson also are evaluating the use of corn residues as a winter feed source for pregnant beef cows. Research results are expected in fall 2023. Other BCRC-funded priority research projects are exploring: • improved feed efficiency through individual cow variability in fibre digestibility, feed efficiency and methane emissions, • a Canadian-specific model evaluating grazing and nutrient cycling, • reduced supplementation costs through strategic forage selection, and • the modes of action of yeast as a directfed microbial for feedlot cattle. Project summaries are available at
Building Research Capacity Through Industry-Funded Chairs Since 2018/19, the BCRC has been
Producer Resources and Industry Engagement The BCRC develops and distributes numerous producer and stakeholder resources including fact sheets, interactive decision-making tools, videos, articles for industry magazines, webinars, blog posts, infographics and radio clips. For example, as drought conditions set in across much of Canada, BCRC staff developed and promoted drought-related blog posts, webpages and other extension resources including a webinar on alternative feeds, feeding strategies and water management. Resources related to early weaning of calves and winter feed management also have been developed, and work is underway to support drought recovery strategies.
developing research chairs in partnership
Project Spotlight
with key research institutions through a
The BCRC continues to collaborate with
competitive call for proposals. The BCRC has leveraged additional funding to implement long-term research capacity in industry priority areas. Industry chairs focus on research priorities, teaching students and transferring knowledge to producers and other end users.
expertise in Eastern Canada to identify information and data gaps, develop relevant content and modify resources on BeefResearch.ca to better reflect production practices of beef producers in Ontario, Quebec and Atlantic provinces. Eastern extension network expansion, webinars and
Two chairs were filled in 2020/21:
other modular resource development is
Dr. Gleise M. Silva became the
being created to support regional extension
newly established BCRC-Hays Chair
program delivery. Over the past year,
in Beef Production Systems at the
awareness campaigns promoted applicable
University of Alberta, and Dr. Cheryl
existing extension resources on beefresearch.
Waldner became NSERC/BCRC Industrial
ca to beef producers and extension agents
Research Chair in One Health and Production-
in Eastern Canada. New Eastern-targeted
Limiting Diseases at the Western College
extension content also has been posted to
of Veterinary Medicine. Research capacity
beefresearch.ca with new French versions
expanded further as new researcher,
available for some materials. Priorities for
Proof of Concept Informs Research Investment
Dr. Emily Snyder, was hired to backfill
future content development include animal
Dr. Waldner’s previous research position.
health, calving management, forage and
The BCRC funds short-term projects to
Approved in 2019/20, a new Industry Chair
BeefResearch.ca.
examine and validate the feasibility of pursuing larger, more defined research investments in particular areas. These
in Integrated Forage Management and Utilization at the University of Saskatchewan is anticipated to begin May 2022.
grazing management and dairy beef.
For More Information Learn more about BCRC initiatives,
proof-of-concept (POC) projects are jointly
resources and decision-making tools for
funded by Canadian Beef Cattle Check-Off
beef producers at www.beefresearch.ca.
BFO ANNUAL REPORT 2022
51
CANADA BEEF Canada Beef is pleased to provide the
Consumer and digital marketing teams
groups to address public and consumer
Beef Farmers of Ontario (BFO) with a year-
delivered outreach initiatives on sustainable
concerns about beef production, while also
to-date 2021 overview of domestic and
production and the health and nutritional
working to support Canadian beef brands.
export market efforts to increase demand
aspects of beef to key audiences over
for Canadian beef and ultimately the value
numerous platforms.
When climate change dominated the
producers receive for their cattle. Prices for animal protein continued to climb in 2021 due to a combination of supplychain disruptions, extreme weather events in the west, higher prices for the grains needed to feed livestock, and increasing domestic and global demand. After rising five per cent in 2020 (the third highest increase in recent history), retail beef demand for 2021 is projected to be -1.5 per cent, due to higher retail prices and lower consumption as strong export performance pulled volume away from the domestic consumer. Canadian beef export volumes were 4 per cent higher in November 2021 than a year earlier, and up 24 per cent from the five-year average for November. Year-to-
Domestic Market Development The Canadian Beef Information Gateway (Gateway) is dedicated to supporting the future growth of the Canadian cattle industry and an outstanding beef eating experience for our customers in Canada and around the world. The Gateway is Canada Beef’s most ambitious initiative to date. Consumers simply scan a Gateway QR or UPC code with a smart phone or tablet to access content that
as well as industry professionals in nine
engage and connect with consumers and producers to build brand loyalty. With 70,000 followers and approximately
BFO ANNUAL REPORT 2022
the impacts of cattle on the environment. Canada Beef provided matching funding with the Beef Cattle Research Council to support the podcast series.
imports at the equivalent rate of $1 per messaging across Canada. The awardwinning One & Only Beef campaign is a recent example of how import levy funds are used to benefit beef consumption.
December 2021, Canada Beef continues to
Canada Beef fortified its efforts to promote
Canada Beef partners with the Canadian
52
the science of beef production, beef, and
Health and Nutrition
about buyer and consumer trends. This
return on investment from Canada Beef.
The Cows on the Planet podcasts focus on
19 million impressions from January to
countries to acquire a fresh perspective
beef industry competitiveness, and a strong
is on the Taste Canada YouTube channel.
head) provides funding for positive beef
build meaningful relationships.
intelligence ensures Canadian cattle and
public audiences. The entire conversation
The Import Levy (collected on beef
January 2022.
Canada Beef’s social and digital spaces
research projects that surveyed consumers
for food writers, culinary professional and
A phased rollout of the Gateway began in
November) were up 22 per cent in volume
The global marketing team completed
sustaining land and diverting food waste
and preparation methods with confidence.
Consumer Marketing and Public Trust
period in 2020 (Canfax).
panel discussion about the role of cattle in
Generic Beef Marketing Funded by the Import Levy
inspires them to try new beef cuts, recipes
date, Canadian beef exports (January to and 39 per cent in value from the same
news cycle, Canada Beef sponsored a virtual
Cattlemen’s Association to jointly-deliver the Public and Stakeholder Engagement program, and works with other beef industry
the health and nutritional aspects of beef to consumers with the addition of a registered dietitian to our staff. This expertise will help further develop Canada Beef’s nutrition strategy in line with the current science,
industry needs and nutrition trends. Efforts in this area include six TV spots on Iron & Women’s Health on stations in major urban centres across Ontario and Atlantic Canada from July to October. The combined reach of these televised spots was 2.3 million viewers, with a segment on Breakfast Television Toronto alone reaching 840,000 views - an important target audience for Canada Beef.
Domestic Channel Marketing The Domestic Channel Marketing team
Export Market Development Programs and Services
Canadian Beef Centre of Excellence
The Canada Beef Export Market
(CBCE) has developed a sophisticated
Development (EMD) program provides cost-shared funding support for eligible Canadian Beef representative companyinitiated projects and activities in five broad
The Canadian Beef Centre of Excellence repertoire of video and photography capabilities to continue to deliver Canadian Beef Advantage messaging to industry and consumer audiences.
engages brand partners within the Canadian based categories essential for facilitating
The CBCE has created nearly 300 video
market in the development and promotion of Canadian beef export market growth.
titles to date. Approximately 85 videos are
Canadian Beef to leverage the value of the
currently available on cdnbeefperforms.ca,
Canadian Beef brand, to increase demand, client confidence and competitive position within the Canadian marketplace.
In 2021, 50 EMD program projects were approved that supported six incoming buyer delegations, one outgoing market development visit, 35 different promotion
Canada Beef’s trade website. The videos serve as educational and promotional tools with trade/industry professionals and consumers as well as in multiple
A new domestic trade-marketing program
and marketing initiatives and eight projects
called the Domestic Market Development
that involved international trade show
international markets.
Partner Program launched. The program
attendance. Of these 50 projects approved,
To support skills training for industry,
provides cost-shared funding support for
28 different companies received support
the CBCE and the Domestic Channel
eligible Canadian Beef representative
targeting nine different export markets and
Market team launched initiatives to
company-initiated projects and activities in
four projects that covered multiple export
promote excellence in culinary arts and
two broad based categories essential for
markets. Canada Beef expects to receive
butchery, respectively, and drive interest
facilitating domestic market growth.
an influx of new applications under this
in enrollment at Canadian vocational
An advertising campaign to promote
program as pandemic restrictions ease.
institutions.
the Canadian beef grading system to
Canada Beef’s International team
As we enter the final quarter of the current
retailers, and educate consumers and trade
responsible for export market development
fiscal year, the work continues at Canada
professionals about the quality and value
in major and emerging beef export markets
Beef to ensure the delivery of programs,
offered within Canada’s top three beef
continue to respond to new trends and
services and resources that will position
grades will help consumers choose the
opportunities while at the same time
Canada’s beef and veal industry for
product that is right for them and improve
dealing with many pandemic-related
continued success and increase consumer
overall consumer satisfaction.
restrictions.
satisfaction, preference and brand loyalty.
BFO ANNUAL REPORT 2022
53
CANADIAN BEEF CHECK-OFF AGENCY COVID-19 has changed so much of
stakeholders and those along the value
year has not been easy, and they have all
the world we live in, that it is hard to
chain about the collection and remittance
stepped up to the plate to continue working
remember what life was like before Zoom
of check-off which has, in turn, reduced
for our industry without missing a beat.
calls and social distancing. But the last
slippage. Our goal of being a lean
year has really shown how resilient and
organization continues. It is important to
collaborative our industry can really be. We
us to remain engaged and encourage
have had to adjust how we do business in
engagement, an area that remains a priority
a lot of ways for our national and provincial
for us, like it does from coast to coast. We
organizations, while at home on our beef
are always looking for ways to change our
ranch, we’ve had to find ways to keep our
strategies and remain flexible, making sure
families, friends and employees safe and
to get our message to where producers are.
still continue to provide top quality beef to Canadians and the world.
As markets fluctuate and the way we raise and produce cattle changes, so must our
Our check-off dollars went to work hard
strategy for investing check-off dollars.
last year, supporting flexible marketing
Different points in the cattle cycle highlight
strategies to meet consumers where they
the need for different investment priorities
were shopping and delivering most, and
for our industry, so we have to be ready to
investing research dollars into projects
watch for those market signals and remain
that helped producers stretch their feed
flexible.
supplies and increase efficiencies while holding on to cattle in a backlogged market situation. Investments into maintaining and growing public support for beef and beef producers was paramount this year, and our industry continues to focus on the science that shows how beneficial cattle and beef really are to our environments and bodies.
helm, and it is so encouraging to see the marketing strategies being put to work on behalf of our beef and veal producers. It is certainly something to be proud of. At the Beef Cattle Research Council (BCRC), Andrea Brocklebank has been a rock for our industry. Through crises and prosperity, Andrea has continued to lead the BCRC and the industry’s research strategies to do what they do best, which is to help beef producers do what they do best. Under Andrea’s leadership, research capacity incredible accomplishment for our industry.
priorities that will move us forward together, which includes a funding strategy to meet the goals that will affect the profitability and future of Canadian beef producers. The Strategy recommends both funding allocations for each provincial cattle association, as well as the measurable into the future. And it is the job of our
for Canadian beef and veal producers.
national beef organizations, including our
Add that to the $1.2 million in import levy
provincial partners and our three national
collected, and nearly $19 million was
service providers, to help deliver on those
invested into making our industry more
measurable goals.
BFO ANNUAL REPORT 2022
Beef continues to thrive with Michael at the
has been retained and grown, which is an
collected in Canada, to help drive value
54
the marketing arm of our industry. Canada
industry can continue to focus on the
goals that will continue to pull our industry
We have worked to educate producers,
such an impressive leadership style for
Through the National Beef Strategy, our
Last year, $17.2 million in check-off was
efficient and profitable.
At Canada Beef, Michael Young has brought
Speaking of our service providers, I have to give each of them a round of applause. This
Leading the Public and Stakeholder Engagement (PSE) team, Amie Peck has continued to drive new and exciting programs and strategies to share the stories of our industry and our beef and producers with the world. The Guardians of the Grasslands film has been an absolute joy to watch spread across the country, and it makes me feel so good about the hands that we’re leaving our industry in. Our service providers work incredibly hard on our behalf, so be sure to take a moment and thank them for everything they do to drive our industry forward. We are so lucky to attract and retain top talent in the
beef industry, and I want them to know
to remain flexible and engaged in a world
often work against us, but when we put
how much the beef producers in Canada
where business has to move forward
our heads down and go to work each day,
appreciate the work that they do.
virtually, but I appreciate the commitment
we know that our industry continues to do
I’d also like to take this opportunity to
from our friends across the country to work
what’s right for us today, and what’s right
thank our provincial and national partners
hard for our producers in Canada.
for our children tomorrow.
for being so engaged with the Agency.
Lastly, I want to thank every one of you
Chad Ross
It is always a pleasure to work with the
who is a part of Canada’s beef and veal
Chair, Canadian Beef Check-Off Agency
board and staff from these organizations,
industry. I know it hasn’t been easy and
and we continue to foster positive working
things like profitability, consolidation,
relationships as we grow. It can be hard
public perception and the almighty dollar
BFO ANNUAL REPORT 2022
55
CANADIAN CATTLEMEN’S ASSOCIATION Over the past year, our sector
Despite the hardships facing our industry
demonstrated its unwavering perseverance
this year, there were also pivotal moments
as we worked to navigate and overcome
of success and momentum for cattle
more adversity with the devastating
producers worth noting:
impacts of droughts, wildfires, and floods, as well as managing the uncertainty created by the pandemic. We still don’t have a complete picture of the weather-related impacts, as further obstacles and stress are expected for beef producers and ranchers in the west and parts of Ontario moving into 2022. We are thankful for the quick rollout of AgriRecovery programs from both the federal and provincial governments, which provide support for winter feeding costs, improving access to water, and impacts from drought and wildfires. As further weather-related issues are identified, the Canadian Cattlemen’s Association (CCA) will continue to work alongside our provincial partners to communicate these impacts and advocate to government for potential solutions.
56
BFO ANNUAL REPORT 2022
Canada Attains BSE Negligible Risk Status May 2020 marked the end of the Bovine Spongiform encephalopathy (BSE) era in Canada with the World Organisation for
Trade Our trade priorities focus on growing and expanding access for Canadian beef in key markets such as China, the European Union (EU) and the United Kingdom (U.K.) as well as pushing for trade limiting restrictions on Canadian beef to be removed with the goal of leveling the playing field for Canadian beef farmers and
Animal Health recognizing Canada as
ranchers.
negligible risk for BSE. CCA worked closely
CCA is also working hard to optimize trade
with the Government of Canada to see the application for negligible risk come to fruition. This change in risk status will help facilitate expanded access to foreign markets for various beef products currently limited by BSE era restrictions. CCA is now focusing on the removal of the remaining BSE era market access restrictions, as well as the alignment of packing house requirements with international recommendations.
with the EU. Canadian beef producers have not reaped the same success as their EU counterparts due to many technical barriers, ranging from specific production protocols to meeting documentation requirements, impeding Canadian exports into the EU. In addition, CCA is following developments on trade negotiations of particular interest to Canada’s beef industry, such as CanadaU.K., the Comprehensive Economic Partnership Agreement (CEPA) with
Indonesia, and the Canada-Association of Southeast Asian Nations (ASEAN) Free Trade Agreement. We expect the Asian region to hold the largest growth potential in beef demand over the next 25 years and securing more access into these markets is a priority for us.
United Nations Climate Change Conference CCA’s Fawn Jackson participated in a session at the United Nations Climate Change Conference UK 2021 (COP26) with other industry leaders from around the world on farmers’ climate ambitions
25th Anniversary of The Environmental Stewardship Award (TESA)
Humane Transport Regulations
Through TESA, our industry celebrates
the feed, water, and rest transition period from
the efforts undertaken by cattle producers to protect and preserve the environment – TESA celebrated its 25th anniversary
part of the solution. The goal from our involvement in these international discussions is to help influence a small shift towards a more positive narrative surrounding the livestock industry in the global arena.
United Nations Food Systems Summit CCA represented the unified interests of
Research funded by Agriculture and Agri-
from Falmouth, Nova Scotia, who are leaders in their community and the beef sector at large with their outreach efforts to the public and their open-door policy to educate consumers wanting to know more about how beef cattle are raised in harmony with the environment.
Next Agricultural Policy Framework CCA is working hard to bring strong recommendations forward for consideration for the Next Agricultural Policy Framework (NPF). As negotiations proceed, it is our hope that a forward-
positions Canadian beef producers favourably in conversations about food and food production, with the goal of enhancing consumer support and public trust and the Canadian livestock sustainability efforts were recognized on a global scale.
Council is underway to build upon earlier research to better understand the effects of unloading and reloading cattle, rest stop duration and the associated animal welfare outcomes. Published results from the two trials under the project show that or welfare benefits to transported calves. The final trial of the project is investigating longer transport intervals and the effect of rest stops. This research is expected to be completed in Spring 2022.
looking framework is developed with an
Business Risk Management
increased funding envelope and policies
CCA and provincial cattle associations
designed to foster a competitive business environment as well as tackle the impacts In early November, CCA was invited to
innovation. Advocacy at this global level
Food Canada and the Beef Cattle Research
rest stops do not provide significant health
Nations Food Systems Summit (UNFSS) in
stewardship, food security, and
and reviewed to ensure the best outcomes
recipient – the Manning Family Farm –
of climate change.
and highlighted our role in environmental
for science-based research to be completed in humane transportation are achieved.
the Canadian beef industry at the United September. We proudly shared our story
February 2022 to February 2023 to allow
this year. Congratulations to this year’s
and highlighted how sustainable beef production in Canada is an important
CCA has requested a one-year extension on
participate in the Federal-ProvincialTerritorial Agriculture Ministers’ meeting outlining the priorities of the NPF that’s set to replace the Canadian Agricultural Partnership (CAP) ending in March 2023. A large emphasis was placed on the environment and climate change and CCA contributed to discussions about the role of beef producers in tackling climate change, as well as addressing the important role our sector plays in securing environmental
collaborated to improve business risk management programs this year. The removal of the reference margin limit under AgriStability was a welcomed change that will provide greater equity to cow-calf producers under the program. Enhancements were also made to Livestock Price Insurance program, including the extension of calf settlement windows into January and February, extended calf program availability into June and extended hours to buy a policy and claim a settlement. CCA and the provinces also lobbied for quick rollout of targeted AgriRecovery programs from both the federal and provincial governments, which provided
benefits such as carbon sequestration and
drought and wildfire support.
biodiversity protection.
Bob Lowe President, Canadian Cattlemen’s Association
BFO ANNUAL REPORT 2022
57
CANADIAN CATTLE IDENTIFICATION AGENCY It will come as no surprise that 2021 has been a challenging year. The Canadian Cattle Identification Agency (CCIA) has done well by continuing to implement ever-changing COVID 19 protocols, working remotely and relying more heavily on our digital systems of which have met or exceeded the challenge. Despite the difficulties 2021 brought, we would be remiss not to mention some of the major milestones and accomplishments that came about this year.
CCIA Annual General Meeting CCIA held a virtual annual general meeting in April in light of COVID-19 restrictions. Don Hargrave of the Beef Farmers of Ontario, Yvonne Mills of the Canadian Bison Association and Cam Daniels of the Canadian Meat Council were welcomed to the CCIA Board of Directors. The remainder of the CCIA Board of Directors remained the same, led by Pat Hayes of Val Marie, SK, (Canadian Cattlemen’s Association representative) who stands as the Chair with Lyle Miller (Alberta Cattle Feeders’ Association representative) as Vice Chair of the industry-led, non-profit. The remainder of the Executive Committee consists of
58
BFO ANNUAL REPORT 2022
Howard Bekkering (Alberta Beef Producers representative), Finance and Audit Committee Chair; Doug Sawyer (CCA representative) and Ken Perlich (Livestock Markets Association of Canada representative) are the Executive Members.
Relocation of CCIA We have had a longstanding goal of owning our own building consisting of both office and warehouse. By having dedicated space of our own and room for a distribution centre we have the potential to increase our in-house services and become more self-reliant to better serve the industry as we move forward. We have been actively seeking a new property since March 2020 and finally found our permanent home in southeast Calgary. The move happened in mid-September, and we are enjoying the new building and all its wonderful features.
Tag Retention Tag retention is an integral part of the traceability system and has long been a focus for CCIA. Over the years, CCIA has collaborated on a number of research projects to better understand common issues and find solutions to concerns about lost tags,
missing backs and poor overall tag retention. CCIA has been working directly with manufacturers to improve issues reported from producers. This has resulted in enhancements and modifications to current tags on the market as well as bringing new and innovative tag design to the market. Conformance testing of approved tags is conducted on a regular basis by CCIA. Annual testing is planned for early 2022. This ensures tags continue to meet the high standards of industry and CCIA. Tag retention will continue to be a focus for CCIA in 2022 and will be the feature of CCIA’s targeted advertising. Tag retention is improving through direct action, which will help with the growing demand for traceability in our industry. Ultimately, much of the responsibility still falls on the producers, who are relied upon to correctly apply tags and respect the environmental limits of the materials. By working together with both manufacturers and producers, CCIA is helping resolve the fundamental traceability issue of tag retention by addressing concerns through direct feedback from producers through the Approved Indicator Quality Control Form found on canadaid.ca under CLTS Forms.
New to the Webstore in 2021 – Destron and Shearwell
Moving Forward with Ultra-High Frequency (UHF)
The new Destron DMR RFID tag is an upgraded and improved version of the Destron eTag. Improvements include a fully molded outer tag housing for better durability, water resistance and an improved tag locking mechanism for greater retention. This is available through the CCIA Approved Dealer network and the CCIA webstore.
There is a growing interest in Ultra High Frequency (UHF) technologybased tags and equipment as a management tool for livestock producers. Recent work by industry has uncovered opportunities and challenges for implementing the technology in Canada, which is highly supported by the feedlot and packer sectors. While CCIA is technology neutral, we have completed a project which reviewed all the relevant literature available on the subject and its application to the livestock industry. This review was supported and funded by Agriculture and Agri-food Canada and Canadian Cattlemen's Association.
Additionally, in the Fall of 2021, the first RFID Beef Loop tag became available exclusively through the CCIA webstore. The one-piece, wraparound tag is considered a game changer among animal indicators. The microchip is overmolded in a plastic insert so readability and read range of the transponder are never compromised. This is an additional option when it comes to official, approved tags. The button style remains available as well for those who prefer it.
Industry has indicated that there are benefits to be captured using the technology beyond the capabilities of the current Low Frequency technology tags. Even ahead of international standardization of
numbering schemes, which is required for national adoption of the technology in Canada, introduction and testing of the technology is being seen as beneficial. CCIA is receptive to industry’s wishes but require changes and additions to current systems to allow the new technology to achieve its greatest benefit for all stakeholders. CCIA is exploring ways to rapidly introduce UHF management tags into the existing system in a cost-efficient manner that supplies benefits of the technology to on-farm data collection and supports traceability. Traceability integrity is enhanced and data capture is simplified by pairing a UHF tag number with a CCIA tag number and storing the cross reference in the CLTS.
BFO ANNUAL REPORT 2022
59
FARM & FOOD CARE ONTARIO
Farm & Food Care Ontario (FFCO)
Animal Protection Zone signage on behalf
The Real Dirt on Farming was supported
appreciates the continued support
of its livestock members for distribution
by commodity groups and agribusinesses
of platinum members, including Beef
across the province.
across Canada, including Canada Beef,
Farmers of Ontario (BFO), which enables
Six virtual training courses focusing on
and covers topics such as the relationship
the organization to continue the important work of building public trust in Ontario agriculture. BFO Director Jason Leblond serves as an ex officio member of the FFCO Board of Directors.
responses to livestock emergencies including truck rollovers were held for 60 first responders both in northern Ontario and across Southwestern Ontario. These courses are run by FFCO staff
between grazing animals and the environment and careers in the agri-food sector. 32 career profiles are featured, including two beef farmers and a beef researcher. A new, interactive website (www.RealDirtonFarming.ca) provides
With the ongoing COVID-19 realities
in partnership with Victor MacPherson,
of 2021, FFCO continued to reimagine
a livestock responder with significant
many of its traditional outreach programs
expertise in this area. In 2021, new video
content sharing.
and create new opportunities to engage
content was filmed featuring a livestock
A supplementary Teachers’ Guide created
with consumers both online and through
trailer being cut apart, as would be done
in partnership with Agriculture in the
in person events that took pandemic
in an accident scenario. This has added
Classroom Canada (AITC) was distributed in
protocols in place. With large followings
significantly to the course which covers
2021 to AITC partner groups across Canada.
on social media and strong website
the factors that are important to the
platforms, FFCO was able to expand its
decision-making processes for accidents
outreach, making 2021 a remarkably
involving livestock trailers, including
successful year, despite the complicated
trailer design and the implications for
circumstances.
extrication points, animal behavior, laws and regulations, euthanasia protocols, and
Training and Workshops FFCO supports member groups, farmers
how to develop response teams.
opportunities for digital learning and
In addition, the magazine has been shared with Ontario MPPs and municipal leaders, MPs and Senators from across the country, and was distributed through Post Media newspapers to homes across the country.
FarmFood360°
and the broader agricultural industry
The Real Dirt on Farming
With teachers and students continuing
through a variety of speaker services
The fifth edition of The Real Dirt on
and training. In 2021, this included 36
Farming received several industry
organizations seeking to connect with
presentations and 12 virtual Speak Up and
communications awards in 2021. From the
media training courses designed to help
Canadian Agricultural Marketing Awards
participants effectively engage with the
(CAMA), the publication received a Best
public or media.
of CAMA in the category of Company
Other virtual training sessions focused
or Industry-Funded Marketing Tactic
on activist-related issues and providing advice on how to protect farm properties from unwanted visitors. FFCO continues to support its members on issues related to animal activism and, in 2021, created
60
BFO ANNUAL REPORT 2022
Directed at the General Public. It was also recognized with two prestigious gold awards presented by the Canadian Farm Writers’ Federation (CFWF).
online learning in 2021 and agricultural consumers virtually, www.FarmFood360. ca welcomed a million visitors to 22 farms and food processing facilities in 2021, joining the beef farm tour that was developed in partnership with BFO and released in the winter of 2021. In February of 2022, a new educator resource will be available on the website to accommodate requests from many teachers across Canada wondering how they can use the VR site in their classroom teachings.
Faces Behind Food – Leblond family
Breakfast From the Farm Working with partners at the Ottawa Valley Seed Growers and Carp Fair, the Lindsay Exhibition and the Western Fair District in London, three drive-through Breakfast on the Farm events gave 1,000 carloads of families the chance to meet Ontario farmers and see livestock, crop and equipment displays up close. At the end of each event, they received a breakfast bag full of local, Ontario products like beef jerky, eggs, milk, fruits and vegetables, cheese, bacon or sausage and more to make their own breakfasts at home.
Virtual Food & Nutrition Forum FFCO again used the virtual space to connect with its target audience of food influencers. Working with Farm & Food Care offices in Saskatchewan and Prince Edward Island, the groups hosted three winter webinars on topics related to food labelling, the pandemic’s effect on food service and international food trends. In
269,000. These field trips gave viewers, including students and teachers the opportunity to connect with farmers in real-time. FFCO and AgScape will continue to offer these tours throughout 2022.
November, FFCO again partnered with the Royal Agricultural Winter Fair to host a virtual version of the annual Food & Nutrition Forum and connect with 215 attendees from the same target audience. Topics included reducing food waste, agricultural sustainability and a panel discussion on agricultural migrant workers.
Virtual Food & Farm Field Trips FFCO and AgScape continued a successful partnership 2021, offering a series of 26 livestreamed farm tours which reached a staggering audience of
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 2021 including several
Farm Animal Care Helpline The Farm Animal Care Helpline is a confidential service that allows concerned farmers and community members to report situations where they feel farm animals require better care, or where farmers themselves can call should they require help. FFCO received 13 calls in 2021, and worked with farmers, experienced staff and commodity groups to investigate reports. The helpline is operated in partnership with all major commodity organizations,
butchers working at Ontario retail stores,
including BFO.
both the Leblond family and country
To learn more about all of FFCO’s
music singer/beef farmer Bonita Mercer of northern Ontario, the Eby family of Kincardine and the Wooddisse family of Palmerston.
initiatives, visit www.FarmFoodCareON. org and subscribe to the monthly e-newsletter. Comments and questions can always be directed to FFCO staff directly at info@farmfoodcare.org
BFO ANNUAL REPORT 2022
61
LIVESTOCK RESEARCH INNOVATION CORPORATION LRIC continues to work for its members, BFO included, by focusing on the issues and opportunities facing Ontario’s livestock sector. Our Horizon Series of webinars, dealing with the big issues facing livestock
• Livestock and Water use • The Future of Livestock Vaccines • Animal-free Meat, Milk and Eggs • Embracing Disruptors facing Ontario’s Livestock Industry
an LRIC survey of University of Guelph faculty and our member organizations. Key findings from the survey included: research priorities should be set more collaboratively amongst industry, faculty and government; the current methods of getting research into practice need to be
production, continued - each webinar
Our International Research Advisory
accompanied by a white paper on the
Committee completed their review of
improved.
topic. All past webinars and white papers
Ontario’s Livestock Innovation system
can be viewed at livestock research.ca.
The Founding members of LRIC (BFO,
with key elements of the system being:
DFO, Ontario Pork and the poultry
Horizon topics include:
funding, priorities, program management,
organizations) meet regularly to share
extension, and commercialization. The
good ideas and deal with issues that
committee is making recommendations for
affect all sectors. One issue of great
LRIC, industry organizations, University of
importance is the Alliance agreement
Guelph and OMAFRA to consider so that
between the University of Guelph and
we get the best return on our investments
OMAFRA. The ten-year agreement is
while maximizing innovation to a bright
at the halfway point and up for its five-
future. The committee discussions
year renewal. LRIC worked closely with
were informed in part by the results of
Grain Farmers of Ontario and Fruit and
• Regenerative Agriculture • Livestock and Greenhouse Gases • Antimicrobial Use and Resistance • One Health • Genomics • Getting Research into Practice
62
BFO ANNUAL REPORT 2022
Vegetable Growers of Ontario to develop
ensure that our communications efforts
Innovation office. A new feature this
an industry position that outlines industry
complement those of ‘Beef at Guelph’.
year is the research bursary that will be
This year’s annual call for Alliance
awarded to the best participant proposal
needs from the agreement. There have been great strides made in the past few years in facilities and faculty. Now we need to safeguard the operating funding needed to get the best use out of these investments.
research proposals saw 27 proposals, all of which were reviewed by LRIC along with an additional 94 industry reviewers that we organized. LRIC submitted several recommendations to improve the
with a focus on cross sector and cross discipline proposals. This bursary was made available with support from Grand River Agricultural Society and the Deans of Ontario Agricultural and Veterinary Colleges as well as LRIC support through
We worked closely with BFO to host and
process. LRIC provides communication
participate in a session with University of
to producers by supplying articles
Guelph beef researchers with a focus on
for producer magazines, our monthly
making the most possible from research
newsletter and through social media.
initiative as well.
Our mentorship program has been very
LRIC is pleased to be working with Beef
at Guelph. It was a well-attended day and yielded several recommendations. One recommendation is to continue to build ‘Beef at Guelph’ as a means of getting research results to producers at the right time and in the right format. LRIC will
successful, now in its second year with eleven faculty participants. In addition, we added two spots, one each for OMAFRA’s
their Strategic Investment Fund. Other organizations are considering funding this
Farmers of Ontario to advance research initiatives and drive innovation in the sector.
Research and Innovation Branch and the University of Guelph’s Research
BFO ANNUAL REPORT 2022
63
ONTARIO CATTLE FEEDERS’ ASSOCIATION As a producer organization, the Ontario
beef through quality assurance. In addition,
significant points that will bode well for
Cattle Feeders’ Association is committed
we have also been working much closer
us: a robust feedlot sector in Ontario and
to moving the beef industry forward. The
with Canada Beef on our marketing efforts.
strong consumer demand for beef.
I know it may be hard sometimes to see
While we hear about reports of the
value in marketing and branding, especially
continuing reduction of the herd, and that
when the prices for fed cattle have shown
is especially true for the cow-calf sector,
negative returns on the financials in recent
Ontario has an extremely strong feedlot
years. However, having a recognizable
sector. It’s a plus for our industry that seems
product in the marketplace actually helps
to get lost in the shuffle of the numbers.
improve the overall price you receive for your
We have the operations, and we have
cattle. Market analyst Kevin Grier highlighted
several things in our favour. As tough as it
the OCFB program in his March edition of
is right now, I see a great opportunity down
the Canadian Cattle Market Report, noting
the road. Perhaps the opportunity may be
that it continued to play a role in keeping
several years away. In Ontario, we certainly
commitment is not just to the feedlot sector; it’s also working to enhance the sustainability of cattle and beef production in Ontario. As such, our commitment to advance the industry also extends to the backgrounding and cow-calf sectors. From the beginning, we have worked from a blueprint to help achieve our goal for a sustainable beef industry. This blueprint, which is based on mutual trust between partners, has enabled us to build the Ontario Corn Fed Beef (OCFB) program.
the Ontario market more buoyant. As the
have so much opportunity to grow. We’ve
We continue to enjoy a strong partnership
program accounts for a large percentage
got the land base, the fresh water and great
with the Beef Farmers of Ontario. The
of the fed cattle in the province, Grier said it
operations with the next generation of
support we have received over the years
increased the demand for Ontario cattle.
producers coming on.
As a side note, even though we have faced
When looking at the consumer side of
some very challenging times in 2021 with
the business, we need to show some
respect to the COVID-19 virus and market
appreciation as people have continued
disruptions, the Ontario Corn Fed Beef
to buy beef during the pandemic, paying
Program continued to perform and set
some very strong prices. I see that the
a new record of 330,577 head of quality
consumer is a strong partner going forward,
assured program cattle being shipped to
especially if the times toughen up and
the partner processors. Previously, 2019
cause changes in lifestyles.
was the largest year on record for the
Meanwhile, we continually look five-to-ten
has been essential to the success and growth of the OCFB brand. Over the last two years, the OCFB program has worked with the Ontario Beef Market Development Fund to create many more opportunities for Ontario-produced beef. Our mission is to create an environment where Ontario beef farmers are profitable and sustainable for future generations. Our strategic objectives include growing the domestic market for Ontario-branded beef, achieving growth in export markets for Ontario-branded
program, with 311,483 head of OCFBP Quality Assured Program cattle.
years out to see where the market is going and determine how we can meet the future
beef, maximizing the value of Ontario beef
As we have navigated our way through
demands. There are more market demands
products and enhancing the value of Ontario
the challenges of the pandemic, I see two
all the time, driven by various aspects.
64
BFO ANNUAL REPORT 2022
Going into the future, demand for top-quality
As for the domestic market, we were
Cattle Behavioural Study. Based on our
beef that meets consumer specifications
pleased to see the Canadian Roundtable
findings in 2020, we are striving to develop
will be huge, especially in export markets,
for Sustainable Beef (CRSB) announce
resources and tools a producer can use
which continue to grow. Again, we're
in December that Loblaw Companies
to implement good bunk management
fortunate that we've banked very hard on
Ltd. is expanding its commitment to beef
practices and strategies on farm. The areas
Japan, and that market continues to expand
sustainability in Canada. The company
of study this past summer included a survey
as we speak. While Japan was still in a
plans to purchase three million additional
of feed industry professionals regarding
state of emergency due to the coronavirus
pounds of beef sourced from CRSB
Ontario’s feedlot sector, observing
pandemic, Ontario beef exports continued
Certified Sustainable farms and ranches
behaviour of new feedlot arrivals and taking
to increase compared to previous year
by 2023, tripling its initial purchase of one
a closer look at robotic feed pushers in a
volumes. For example, volumes for the first
million pounds in 2020.
feedlot environment.
The partnership between Ontario Corn Fed
In closing, I would like to thank everyone
six months of 2021 were up 30 per cent over a very strong 2020.
Beef, CRSB and Loblaws provides local
throughout the agricultural sector who have
As of late last year, 21 retail partners were
producers with an opportunity to supply
partnered with us and supported us and
promoting Ontario beef in 567 outlets
beef produced according to standards set
our program. I would also like to express
across Japan.
by the Canadian Roundtable for Sustainable
our appreciation for the support we have
In addition, the Ontario Heritage Angus
Beef and provides Canadian beef farmers
received from the Beef Farmers of Ontario.
an opportunity to be recognized for their
Thanks also go out to the board of directors
dedication to responsible and sustainable
and the staff for their support and for
over 100 retail stores across the country.
beef production.
believing in what I do to make the Ontario
Also, The Oak Door Steakhouse, located
As part of our commitment to responsible
Corn Fed Beef Program a success story for
Beef brand was successfully launched in three new retail chains, which represent
in the Tokyo Hyatt Hotel and one of the highest-rated steakhouses in Japan, has added Ontario Corn Fed Beef to their menu as one of two imported options. The addition of the prestigious steakhouse is the latest success story for Ontario beef in Japan. Our promotional efforts are aimed
and transparent production, the official
our entire industry.
website of the Ontario Corn Fed Beef program was revised in 2021 to include more producer-related information, with a focus on the OCFB Quality Assurance program. The site features short videos on all modules of the quality assurance
at increasing consumer awareness of
program.
OCFB, focusing more on the quality aspects
Another highlight of 2021 was the
of the products.
expansion of our Bunk Management and
Jim Clark Executive Director, Ontario Cattle Feeders’ Association and Ontario Corn Fed Beef Program
BFO ANNUAL REPORT 2022
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
217,219
287,904
505,123
0 13,768
174,119 117,577
174,119 131,345
2020-2021*
191,930
277,077
469,007
2019-2020 2020-2021*
0
70,974
70,974
*These are currently unaudited financials as the audit is in progress
Fund Balance at March 31st, 2021 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
Note:
$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.
66
BFO ANNUAL REPORT 2022
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$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 $ 8,259,229 $ 8,657,262 *
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 2021 Audited Financial Statements
For the year ended December 31, 2021
2022 Preliminary Budget
BFO ANNUAL REPORT 2022
67
BEEF FARMERS OF ONTARIO INDEX TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2021 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
68
BFO ANNUAL REPORT 2022
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, 2021 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, 2021 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 2022
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 23, 2022
Chartered Professional Accountants Licensed Public Accountants
Page 4
70
BFO ANNUAL REPORT 2022
BEEF FARMERS OF ONTARIO STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021
CURRENT ASSETS Cash Accounts and grants receivable Accrued checkoff fees receivable Investments (note 4) Inventory - supplies Inventory - livestock (note 11) Prepaid expenses
2021
2020
$ 1,150,144 284,498 569,520 4,455,700 24,738 23,053 25,103 6,532,756
$ 1,710,705 64,733 535,195 2,750,696 29,377 36,000 32,375 5,159,081
282,937
274,306
$ 6,815,693
$ 5,433,387
$
$
ASSETS
CAPITAL ASSETS (note 5)
LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities Accrued national checkoff payments payable Deferred revenue (note 6) Research trust liability (note 11) Government remittances payable
636,203 51,775 15,000 244,922 162,035 1,109,935
377,559 48,654 500 176,502 48,688 651,903
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
225,000 275,308 500,000 549,861 4,155,589 5,705,758
94,559 449,189 200,000 328,673 3,709,063 4,781,484
$ 6,815,693
$ 5,433,387
See notes to the financial statements Page 5
BFO ANNUAL REPORT 2022
71
BEEF FARMERS OF ONTARIO STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2021 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 Surplus of income over expenses
94,559
$
0
Transfers (note 15) BALANCE, end of year
(note 2g)
225,000
449,189
$
0 (173,881)
130,441 $
(note 2g)
$
275,308
$
200,000
(note 2g)
2021
2020
328,673
$ 3,709,063
$ 4,781,484
$ 3,612,388
0
0
924,274
924,274
1,169,096
300,000
221,188
0
0
$ 5,705,758
$ 4,781,484
500,000
$
549,861
See notes to the financial statements
(477,748) $ 4,155,589
Page 6
See notes to the financial statements Page 6
72
BFO ANNUAL REPORT 2022
BEEF FARMERS OF ONTARIO STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2021
INCOME Fees Less: Commissions to firms making deduction 7 day dealer refund Investment income Magazine revenue Other income Toronto Stockyards Land Development Board (note 13) Grants (note 14) Drought support (note 12)
2021 BUDGET (note 7)
2021 ACTUAL
2020 ACTUAL
$ 4,761,500 (45,000) (245,000) 4,471,500 90,000 80,000 23,000 4,664,500
$ 5,522,211 (39,655) (280,833) 5,201,723 11,578 82,601 23,221 5,319,123
$ 5,213,362 (38,051) (254,633) 4,920,678 99,939 80,640 36,657 5,137,914
EXPENSES Association activities - budgeted (schedule 1) Operations budgeted (schedule 1) SURPLUS OF INCOME OVER EXPENSES for the year
1,185,000 0 0 5,849,500
1,221,033 134,990 958,206 7,633,352
1,176,929 120,917 0 6,435,760
4,211,500 1,638,000 5,849,500
5,149,105 1,559,973 6,709,078
3,849,483 1,417,181 5,266,664
924,274
$ 1,169,096
$
0
$
See notes to the financial statements Page 7
BFO ANNUAL REPORT 2022
73
BEEF FARMERS OF ONTARIO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021 2021 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Surplus of income over expenses for the year Items not requiring an outlay of cash Amortization 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 (USED IN) INVESTING ACTIVITIES Additions to capital assets Investments NET (DECREASE) INCREASE IN CASH NET CASH, beginning of year NET CASH, end of year
$
2020
924,274
$ 1,169,096
19,222 943,496
18,448 1,187,544
(219,765) (34,325) 4,639 12,947 7,272 258,644 3,121 14,500 68,420 113,347 228,800 1,172,296
213,208 (14,376) (6,926) (1,737) 19,918 (34,331) (564) (5,210) (7,739) 35,801 198,044 1,385,588
(27,853) (1,705,004) (1,732,857)
(15,322) (591,308) (606,630)
(560,561)
778,958
1,710,705
931,747
$ 1,150,144
$ 1,710,705
See notes to the financial statements Page 8
74
BFO ANNUAL REPORT 2022
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
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.
BFO ANNUAL REPORT 2022 Page
9
Page 9
75
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
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. 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. Page 10
76
BFO ANNUAL REPORT 2022
Page 10
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
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 2021 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 Canadian and foreign equities and mutual funds, as well as cash temporarily held in its investment trading accounts. 2021 2020 Beginning balance Transfers into an investment account Realized gains in the year Broker fees Unrealized (loss) gain on adjustment to market value
5.
CAPITAL ASSETS Cost Land Building Building renovations Office furniture and equipment Computer equipment Computer software
$ 2,750,696 1,700,000 95,010 (21,834) (68,172)
$ 2,159,388 500,000 75,494 (11,385) 27,199
$ 4,455,700
$ 2,750,696
Net 2021
Net 2020
Accumulated Amortization
$
94,000 217,367 204,515 145,516 224,473 49,484
$
0 143,396 133,938 126,684 201,234 47,166
$
94,000 73,971 70,577 18,832 23,239 2,318
$
94,000 69,856 73,518 6,187 27,672 3,073
$
935,355
$
652,418
$
282,937
$
274,306
Page 11
BFO ANNUAL REPORT 2022
Page 11
77
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
6.
DEFERRED REVENUE Deferred revenue consists of sponsorships and trade show space related to the annual meeting: 2021
7.
2020
Beginning balance Less: amount recognized in the year Add: amount received relating to the following year
$
500 0 14,500
$
Ending balance
$
15,000
$
5,710 (5,210) 0 500
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 $99,612 in 2022, $78,426 in 2023, and $97,270 in 2024, totalling $275,308.
11.
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. In the current year, the livestock inventory was moved to the Ontario Beef Research Centre in Elora.
12.
DROUGHT SUPPORT PROJECT During the year, the organization entered into a drought support project. This project was completed on September 30, 2021 and expired on December 31, 2021. The purpose of this project was to coordinate an emergency need for feed including sourcing, purchasing and transportation of feed and livestock for all ruminant livestock producers impacted by dry weather conditions in Northwestern Ontario. The project met the Grassroots Growth Program's objectives of assisting in the alleviation of adverse conditions caused by drought. For this project, the organization received one-time funding of $958,206 which includes $62,000 from sponsors and spent $1,076,859. Page 12
78
BFO ANNUAL REPORT 2022
Page 12
BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021
13.
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.
14.
GRANT REVENUE Grant revenue relates to the following programs: National Feedlot Surveillance Program Export Market Diversification project Feeder Finance Program (note 9) Trade Mission - South Korea and Japan project Risk Management Projector project Youth Employment and Skills Program Environmental Value of Ontario Beef Production
15.
2021
2020
$
53,262 42,413 39,315 0 0 0 0
$
44,713 7,132 43,521 8,578 6,563 5,791 4,619
$
134,990
$
120,917
INTERFUND TRANSFER During the year, the organization transferred $130,441 (2020 - $0) to the internally restricted building repair fund, $300,000 (2020 - $200,000) to the internally restricted trade action fund and $221,188 (2020 - $328,673) to the externally restricted marketing fund from the unrestricted fund. In addition, the organization transferred $173,881 from the internally restricted research and projects fund to the unrestricted fund (2020 - transferred $307,490). The closing balance in the internally restricted research and projects fund of $275,308 is for beef cattle research commitments in future years.
16.
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.
Page 13
BFO ANNUAL REPORT 2022
79
BEEF FARMERS OF ONTARIO SCHEDULE OF EXPENSES
Schedule 1
FOR THE YEAR ENDED DECEMBER 31, 2021 2021 BUDGET (note 7) ASSOCIATION ACTIVITIES - BUDGETED Annual meeting (net of revenue $24,000 - 2021, $54,559 - 2020) 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 $258 - 2021, $56 - 2020) License fee enforcement Lobbying Breeder finance support Industry, market development and research (note 12) OCFA support for marketing corn-fed beef Feedlot/Cow-calf Committee
OPERATIONS - BUDGETED Elected officers' remuneration Elected officers' expenses Salaries and benefits Staff expenses Postage Premises costs Office Telephone and fax Legal Audit Amortization
$
58,000
2021 ACTUAL
$
64,556
2020 ACTUAL
$
214,894
505,000 470,000 171,000 140,000 30,000 0
506,326 470,505 163,984 138,688 30,000 0
498,710 448,688 165,574 92,033 27,650 30,000
300,000 160,000 75,000 50,000 110,000 170,000 0 1,542,500 430,000 0
345,631 165,274 30,683 58,807 91,546 173,698 1,733 2,456,062 451,612 0
268,044 151,821 18,821 36,407 92,708 145,536 3,900 1,226,156 428,166 375
$ 4,211,500
$ 5,149,105
$ 3,849,483
$
$
$
190,000 110,000 1,082,000 50,000 10,000 70,000 52,000 22,000 20,000 16,000 16,000
$ 1,638,000
216,811 86,984 1,049,598 29,217 7,976 45,342 45,379 25,490 19,704 14,250 19,222
$ 1,559,973
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
See notes to the financial statements Page 14
80
BFO ANNUAL REPORT 2022
2022 PRELIMINARY BUDGET INCOME
2022 BUDGET
Check-off Income License Fees (Gross)
$4,966,500
Less: Other Provinces’ License Fees
200,000
CCA Membership Fee
476,000
CCA Legal Assessment
28,000
National Check-off
903,000
Returned to Ontario
433,000
Commissions Seven Day Dealer Refund NET CHECK-OFF INCOME
40,000 250,000 $3,502,500
Other Income Toronto Stockyards Land and Development Board
$1,220,000
Interest & Investments
80,000
Lease Revenue
20,900
Brand Registration SUBTOTAL TOTAL NET INCOME
800 $1,321,700 $4,824,200
EXPENSES Administrative & General Elected Officers Remuneration
$195,000
Elected Officers Expenses
110,000
Staff Salaries and Benefits
1,125,000
Staff Expenses
40,000
Staff Training & Professional Development
15,000
Postage & Courier
10,000
Building & Office Maintenance
65,000
Office Supplies & Equipment Rentals
35,000
Telephone, Internet & Fax
25,000
Legal & Consulting
35,000
Insurance
45,000
Audit & Accounting Services
16,000
Amortization
17,000
SUBTOTAL
$1,733,000
BFO ANNUAL REPORT 2022
81
Association Activities
2022 BUDGET
Memberships
$100,000
Sponsorships
70,000
County & District Grant and Sharecost Programs
125,000
Ontario Beef Magazine (Net)
82,000
Annual General Meeting
75,000
Communications
100,000
Lobbying & Advocacy
170,000
Check-off Enforcement
100,000
SUBTOTAL
$822,000
Industry Expenses Ontario Beef Market Development Program Producer Engagement
75,000
Consumer Engagement and Ontario Beef Promotion
570,000
Industry Development and Market Information
330,000
Research
170,000
Ontario Corn-Fed Beef
430,000
SUBTOTAL
$2,650,000
TOTAL NET EXPENSES
$5,205,000
GAIN /LOSS ON OPERATIONS
82
$1,075,000
BFO ANNUAL REPORT 2022
$(380,800)
NOTES
BFO ANNUAL REPORT 2022
83
/Beef Farmers of Ontario @BeefFarmersON
@OntarioBeef
/OntarioBeef /OntarioBeef @beeffarmersofon @ontbeef
1.866.370.2333
84
BFO ANNUAL REPORT 2022
ontariobeef.com
ontbeef.ca
beefnorth.com