Livestock Services of Saskatchewan Year in Review

Livestock Services of Saskatchewan Year in Review by Jason Pollock, CEO, Livestock Inspection Services of SK

In fiscal 2019-20, LSS inspected a total of 1,665,644 head of cattle and horses which is a small 1.7% decrease from the 2018- 19 fiscal total of 1,693,584 head. These animals were recorded during 185,748 inspections. The average animals per transaction has slowly risen as producer demographics and operations change.

Based on the volume of the various classes and weights of animals inspected throughout the year, LSS has determined that the average value of animals inspected in the past year sits at approximately $1500 per head. This makes a total inventory estimated market value of $2,507,121,000 for all animals inspected for trade and/or transport out of Saskatchewan.

During normal inspection duties, LSS staff often uncover transaction irregularities relating to prima facie proof of ownership (the brand) as well as to other identifiers and documents provided. These include expressions of interest from security interest holders, court orders, shareholders and sometimes family members. It is the inspector’s responsibility then, to determine whether a withhold or redirection of settlement may be in order.

Many withholds initiated by inspection staff are temporary and are resolved without involving outside parties, as the inspector completes diligence around brand and producer transaction searches needed to verify claims of ownership by the seller. Should documents provided and inspector data searches provide inadequate information, the inspector will initiate a formal withhold under the authority provided by their powers as an inspector. Completed queries will help determine whether the proceeds of sale can be released to the seller, or perhaps redirected to another party. Although many temporary withhold orders do not generate a hard statistic, a test reporting of efforts expended over the past two years shows 878 instances where proceeds for over 17,000 head were subject to extra LSS staff scrutiny prior to being released. Behind the scenes efforts to clear livestock do require significant effort by the inspectors if animals and settlements are to flow at the speed of commerce.

During fiscal 2019-20 LSS inspection staff did record numerous incidents relating to the following irregularities: • Irregularities uncovered during 105 other inspections saw funds redirected to owners and creditors who were determined to be the correct recipients of the proceeds of sale. A simple calculation of both withhold and redirection benefits to the industry around ownership shows that the value of funds withheld/redirected far surpasses the total cost of inspection fees levied by

LSS in the entire service. • Shipping without inspection is the most common infraction of the Inspection and Transportation

Regulations, but there are several other offences related to noncompliance with the legislation as well. • It is appropriate to note that livestock inspection agencies in all western

North America continually share information and cooperate in enforcement and compliance efforts in the interest of efficiency and protection for all industry players.

This is especially important for

Saskatchewan, as we are largely an export jurisdiction. • General investigations and herd searches were initiated at numerous locations as part of separate investigations initiated for parties with an interest in livestock inventory held, or possibly held at these locations. The background on many of these files are not clear cut and take significant resources to investigate the validity of claims and to complete the inspections, sometimes over the course of repeat visits in multiple locations. The outcomes do not always provide satisfaction to all but are a necessary part of diligence in administering the legislation. There were 83 files relating to reports of theft and missing livestock, which involve 418 head of cattle and horses with an estimated market value of $627,000. Six of the files were determined to be possibly criminal matters and are in varying states of investigation. Often livestock reported as missing with no immediate evidence of theft are later determined to have been harboured by a finder, and as such these files take some time to progress. Inspection staff also logged 35 other files relating to infractions ranging from failure to obtain a dealer license and bond, to failure to notify inspection, use of an expired brand and refusal to provide a manifest. LSS does provide unofficial support to Saskatchewan municipalities in relation to their administration of The Stray Animals Act. LSS does not receive compensation for these efforts but did respond to 57 reports of stray animals involving 112 head. Often LSS support in determining ownership of livestock found at large allows for timely removal from dangerous situations while minimizing costs to the municipalities and producers relating continued on page 34

LSS Year in Review cont. from pg. 32 to damages, capture and transport of these animals. The market value of these reported animals would be significant aside from the other savings incurred.

LSS is responsible for administering the provincial livestock brand registry. At the end of last fiscal year, the Saskatchewan brand registry contained 14,315 active brands.

For the fiscal year ending March 31, 2020, the following brand registry activity occurred: LSS issued 230 new cattle and horse brands, compared to 278 last fiscal year,

LSS transferred 358 cattle and horse brands, compared to 156 last fiscal year,

LSS issued 90 lifetime cattle and horse brands, compared to 102 last fiscal year,

LSS re-issued 1,955 cattle and horse brands, compared to 2013 last fiscal year,

Total brands issued is 2,633 compared to 2,549 last fiscal year. LSS maintains an objective analysis of the services we provide as well as the tangible and perceived value to the livestock industry of Saskatchewan. The summary of this analisis is below.

LSS appreciates the continued guidance provided by its membership. The SSGA has been an instrumental part of our success and we look forward to continuing to serve the producers of Saskatchewan in the coming year. B

Cost to Saskatchewan Livestock Industry:

Inspection fee collected Commission paid to livestock dealers for remitting inspection fees

Net Operational Revenue from Inspections

Quantitative Benefits to the Saskatchewan Livestock Industry:

Note: estimated average value $ 1,500 per head for all calculations $ 4,602,609 ($40,760)

$ 4,561,849

Proceeds redirected to rightful owner; 2,903 head Stray animal identification, 112 head Reported missing or stolen livestock, 667 head Cattle/proceeds withheld for clearance in 2520 instances involving 12,342 head Value of regulated documents supplied to industry

Measured Benefit to the Saskatchewan Livestock Industry

$ 4,354,500 $ 168,000 $ 1,000,500 $18,513,000 $77,650

$ 24,113,650

Qualitive Benefits to the Saskatchewan Livestock Industry:

LSS Inspection and Movement Database utilized by MoA/ CFIA Security provided to credit institutions allowing producers access to affordable credit Licensing administration and security held in trust by 139 Dealers and 290 Agents Management of the Provincial Brand Registry (13,770 Registered Brands)

Net Measured Value provided to the Livestock Industry by LSS $ 19,551,801

Summary of Financial Position for year ending March 31, 2020

Total Assets Cash, Investments and Accounts Receivable Property and Equipment Revenues Income (Loss) After Expenses

2020

3,693,435 2,669,448 0.00 5,168,497 204,989

2019

3,757,225 1,152,869 0.00 5,216,796 440,923