AS HOLSTEIN CANADA CELEBRATES 100 YEARS OF CLASSIFICATION, WE ARE EXCITED TO RECOGNIZE THE HERDS IN ONTARO THAT HAVE CLASSIFIED OVER 100 EXCELLENT COWS FROM THEIR PREFIX DURING THESE 100 YEARS.
(NUMBER OF EX HOLSTEINS BRED)
BOSDALE - BOSDALE FARMS INC, CAMBRIDGE (409)
KINGSWAY - KINGSWAY FARMS INC, HASTINGS (314)
QUALITY - QUALITY FARMS INC, VAUGHAN (294)
STANTONS - STANTON BROS LIMITED, ILDERTON (231)
FRADON - FRADON HOLSTEINS LTD, WOODSTOCK (216)
HIGHVIEW - HIGHVIEW HOLSTEINS, PORT PERRY (201)
RONBETH - RONBETH HOLSTEINS, HASTINGS (197)
HOLZER - BUSHY VIEW, LAKESIDE (186)
CROVALLEY - CROVALLEY HOLSTEINS, HASTINGS (169)
HENDERCROFT - HERBERT HENDERSON, ASHTON (166)
FLORBIL - FLORBIL FARMS LTD, MILDMAY (162)
HOLTBYHOLME - HOLTBYHOLME HOLSTEINS, PORT PERRY (160)
DIEMERTDALE - DIEMERTDALE ACRES LTD, AYTON (150)
ALTONA LEA - FRANK BARKEY & FAMILY, BLACKSTOCK (142)
It’s no secret to anyone reading this that we all are truly blessed to work in the industry that we do. Yes of course, it comes with many frustrations and stressors, but there is nothing better than the sense of purpose and gratification that it can make you feel. This is one of the few industries that what we do is not just a job, it’s also who you are. It can be a challenge when your job is so much of who you are, the ups and the downs of the daily grind can affect you so deeply it can be hard to work through. That’s where relationships with other people come in.
It has been a great honour to serve as the President of Holstein Ontario for 2024. Over the course of my tenure as director, the lesson that stands out to me the most is the realization of how much we truly need one another. The underlying message in every barn meeting, Breeders Cups, District Town Halls, Twilights and at board meetings is that everyone loves social events. Sure, you could say it’s because of the food, seeing the farm the meeting is at, looking at the neighbors cows or even sharing a beverage or two. But the real reason everyone loves socials is because of the conversations you have. If you need validation after a hard week, it’s there. If you need some problem solving for an issue your having, it’s there. If you want to know what bulls others are liking, it’s there. If you just want some easy water cooler type talk, it’s there too. We are extremely social creatures, and we need one another more than we could ever admit. So, my encouragement to everyone is to embrace the social times, seek it out and appreciate the time we get to have together.
At the branch we see how important it is for our members to have opportunities to gather and socialize. That is why one of our main objectives is to help all clubs facilitate events that bring people together. We also want to encourage everyone to check in with our social media channels and websites to stay up to date on all the events the branch will be a part of in 2025.
I would like to recognize and thank the amazing team we have at the branch. This team works so hard to organize and run programs for all of our members. I would also like to thank them for all the help that they have given me along the way to develop as a Director.
It all starts with our fearless leader Pam, who is going into her 4th year as GM. She has continued to push forward and take on more in her role.
Her right-hand Martina, who’s personality gives us all a sense of calmness. You know with her there, everything will get done and be ok.
I’d also like to thank Olivia and the sassy Shelley for all the hard work and dedication they put into everything they do.
The next year is full of events that are inclusive to all members across the province. This industry is full of a lot of good people, if you can’t find one, then be one.
God Bless
Kyle MacLeod
General Manager’s Message Pam Charlton
When asked by non-farming friends and family what it is exactly that I do, I often think – they won’t understand. Yes, I can rhyme off all the events and programs that we support and the youth development skills that we promote, but for me, it is so much more than that. I have attended countless shows and seen many Champions crowned but I can’t say I remember many of their names. Well, except for maybe the most recent few. I am always in awe listening to people recite generations upon generations of breeding history and classification stats. I can list the contributions to youth education and the skills we are developing around genetics, production and efficiency. These things are all very important for the future of our industry but have you ever sat down and really asked, ” What makes our industry so special?”
One only has to look at our recently revised Mission Statement to find the answer. Providing outstanding service and exceptional opportunities to ensure longevity and excellence in the Holstein Community.
The key word here being Community. Our programs and events would not be the success they are without the support of our dairy community. This includes our industry partners, volunteers, and the producers themselves. As your General Manager, that is my greatest reward. Being part of an industry that supports each other, shares a common vision for youth development and is creating a community of people that want to contribute and give back for the benefit of others.
The evidence of this is the long list of sponsors found on page 7 of this Annual Report. We must also recognize the long list of volunteers that sit on organizing committees of the events we offer, the volunteers that show up at the events eager to help out in any way they can, the directors that sit on your Holstein Club boards, the 4-H chaperones and leaders that dedicate their time and expertise to our youth…the list goes on and on. That is what makes our industry special. And it is what gives me the motivation to keep these activities going and look for new and innovative ideas to further our education and development opportunities.
Thank you for your contributions to the Holstein Community and for letting me be a part it.
Pam Charlton
The greatness of a community is most accurately measured by the compassionate actions of its members.
”
- Coretta Scott King
Minutes of the 42nd Annual Meeting
Wednesday, February 28, 2024 ~ 9:30 A.M. Lamplighter Inn, London, ON
Welcome: President Cole Verburg welcomed everyone to the 42nd Holstein Ontario Annual General Meeting in London, ON
Call to order: At 9:45 a.m. President Verburg officially called th e in-person meeting to order The ground rules for the meeting and for voting were explained.
Guests: Director Robert Kolb recognized a number of special guests in attendance; a number of past Presidents, representatives from EastGen, and Lactanet.
Agenda: The agenda was accepted as presented.
Motion by: Kyle MacLeod
Seconded by: James Cranston. Carried.
Minutes: The minutes of the February 22, 2023, 41st Holstein Ontario Annual General Meeting were approved as printed.
Motion by: James Cranston
Seconded by: Monica Kagi Carried.
President’s Cole Verburg enjoyed his year as President. He enjoyed the passion of the Holstein community as Report: life post COVID-19 resumed a form of normalcy. Farm Tours, twilight meetings, AGM’s, shows , and youth programs were back in full swing , enabling people to learn, meet new people, and rekindle old acquaintances and friendships. The revamping of the Junior All Ontario program is on the horizon, providing new opportunities, building excitement, and breathing new life into the Holstein community. A highlight of his year was having the honour of placing the rose garland across the shoulders of Shikira, the Grand Champion cow at the 2023 Royal Agricultural Winter Fair Congratulations were extended to the 4 Master Breeders from Ontario this year In closing, President Verburg introduced the 2023 Board of Directors.
General Pam Charlton addressed the membership stating how fast this year has gone by. She thanked the Manager’s Board of Directors for t heir support and assistance in serving our membership by attending the Report: many County Holstein Club activities and Holstein Ontario events. Branch representation at County events is important to the Branch, and the Directors play a large role in making that possible Pam also introduced and extended gratitude to staff members Martina Arth (Office Co-Ordinator), Olivia Dunn (Magazine editor & Communications) , Shelley Barfoot–O’Neill (Branch and Event Support Administrator), for their dedication and support As Pam demonstrated in a slideshow, it’s been a busy year and many things were accomplished. The membership is encouraged to reach out to staff or the Directors to share thoughts and ideas on programs and new initiatives and how we can better serve you “The membership drives what we do at the Branch ” Excitement is building with plans to launch new programing in 2024, to help nurture and develop future leaders in our industry!
Financials: The 2023 audited financial statements for Holstein Ontario were reviewed by Vice-President Kyle MacLeod. Kyle noted that gains in our investments and an increase in the levy largely contributed to the increased revenues in 2023. The Board is aware that we need to spend some of th ese funds and is planning to launch a new program called the “Dairy Futures Summit” in 2024 The financials presented w ere approved by those members in attendance.
Motion by: Alan Hawthorne
Seconded by: Robert Kolb Carried. The membership approved a motion to accept KPMG as official auditors for 202 4
Motion by: Adam Hunt
Seconded by: James Cranston Carried
Kyle MacLeod reviewed the Budget for 2024 stating that it was for information purp oses only. Kyle noted that the investment interest should offset the deficit, also noting that the cost of the Dairy Futures Summit is not included as it is in the early planning stages and a budget has not yet been established. There were no questions from those attending.
Resolutions: Director Alan Hawthorne reviewed the rules of addressing and voting on the resolutions brought forward. Jamie Howard and Murray Reissner were appointed the scrutineers in the case of a vote. Alan read the following resolution submitted by the Dundas County Holstein Club
Whereas, it is encouraged for exhibitors from all over Canada to support our National Holstein Convention Show regardless of where it is hosted year over year; Whereas, we do not have a show associated with our Ontario Provincial Convention; Whereas, The Royal Winter Fair Holstein Shows are National Shows and considered a qualifier for All Ontario Awards; Whereas, there is opportunity to encourage participation in more shows and also in promoting the Holstein breed throughout Canada;
Be it resolved, that the National Holstein Convention Show be added as a qualifying show to the All Ontario Awards Competition.
Motion by: Erica Enright
Seconded by: James Cranston Carried.
In discussion James Cranston clarified that this resolution only applies to Ontario bred & owned animals.
Alan Hawthorne then read the second resolution put forth by the Dundas County Holstein Club:
Whereas, the Red & White Holstein is gaining more interest in Canada & Ontario; Whereas, most larger shows in Ontario are also awarding Red Champions; Whereas, the National Red & White Show at the Royal Winter Fair has been on a steady increase in entries year over year; Whereas, we have exhibitors who now bring a string of both black & red animals to our shows; Whereas, another opportunity for people to promote & market their cattle is always a positive in this industry;
Be it resolved, that the All Ontario Awards Competition add a full list of red classes, including Junior and Senior Breeders Herd, to the competition in 2024, making note to promote this in the very near future to allow exhibitors time to prepare their cattle and have professional pictures taken throughout the year.
Motion by: Erica Enright
Seconded by: James Cranston. Carried.
National Brian Slaughter, Director of Holstein Canada (HC), brought greetings to the meeting on behalf of Report: the National organization Brian commented that “it’s great to see such a large turnout” and seeing interest in the industry alive and well Brian introduced his fellow Holstein Canada Directors also in attendance; Nancy Beerwort, Dennis Werry, and Doug Peart Holstein Canada had provided a video with greetings from Holstein Canada President Ben Cuthbert, but due to technical difficulties it could not be shared. Brian touched on some of the highlights of the 2023 year including increased registrations, increased Genomic testing , and the launch of the Connexxion App Unfortunately, classifications in Ontario and parts of Quebec are still behind. Currently they are at 47% regionalization with a goal of 75%. The 2024 National Convention is on April 24-27 in Hamilton – He hopes to see everyone there! A comments was made from the floor regarding concerns that the continued large interval between classifications in Ontario has an impact on Master Breeder points, AI and in the end revenues for Holstein Canada.
Cow of the Brian Slaughter presented the “Cow of the Year” award to Gouldhaven Avalanc he Eva owned by Of the Year Gouldhaven Farms of Foresters Falls.
Open Forum: No questions were brought forward. Cole encouraged members to reach out to Pam or the Board of Directors if any questions arose.
Introduction Cole Verburg introduced the 2024 Holstein Ontario Board of Directors Of the Board
Western Ontario: Kyle MacLeod, Alan Hawthorne
West-Central Ontario: Robert Kolb, Jeff Krul
East-Central Ontario: 2 vacant positions
Eastern Ontario: Cole Verburg, Monica Kagi
National Director appointed to the Board: Brian Slaughter
Cole thanked Adam Hunt for his dedication and service during his term as Branch Director on the Board. He wished him well and encouraged him to continue his involvement in the industry.
Kyle MacLeod thanked Cole for his term as Branch president and presented him with his Past President pin.
The 2025 Provincial Convention will be on February 25 & 26 in Barrie, Ontario.
Adjournment: The meeting was adjourned at 10:30 a.m. Motion by: Robert Kolb
Attest:
Pam Charlton, General Manager Holstein Ontario
Results of Resolutions carried at the 2023 Holstein Ontario Annual Meeting (February, 2024)
1. Submitted by Dundas Holstein Club
Be it resolved, that the National Holstein Convention Show be added as a qualifying show to the All Ontario Awards Competition.
Action Plan: Ontario Board of Directors approved for implementation (with limitations) for 2024 awards.
2. Submitted by Dundas Holstein Club
Be it resolved, that the All Ontario Awards Competition add a full list of red classes, including Junior and Senior Breeders Herd, to the competition in 2024, making note to promote this in the very near future to allow exhibitors time to prepare their cattle and have professional pictures taken throughout the year.
Action Plan: Ontario Board of Directors approved individual class offerings for Red and White heifers (with limitations) and a Junior Breeders Herd for 2024 Awards. Will reexamine additional classes each year. 3
Annual Sponsor Recognition
Thank you to all of our generous sponsors who supported our programs and events in 2024. We greatly appreciate your contribution to the future of the dairy industry.
Ontario Joint Dairy Breeds
Ontario Dairy Youth Trust Fund
Grenville Mutual Insurance
EastGen
Quality Seeds
Ayr Farmers Mutual Insurance Company
TD Canada Trust
Vicki Fletcher Photography
Upper Grand Vet Services
Eastern District Council
Trouw Nutrition Canada Inc.
Dairy Lane Systems
Norwell Dairy Systems
Holstein Canada
Grober Nutrition
Farm Credit Canada
Elanco
Delta Power Equiptment
Dairy Farmers of Ontario Lactanet
Jersey Ontario GayLea Foods ST Genetics
Steveleigh Holsteins
Walker Dairy Inc.
Shaw’s Ice Cream
Tavistock Veterinarians
Nuview Farms Ltd.
Salus Mutual Insurance
Western District Council
Durham East 4-H Association
Ontario County Holstein Club
East-Central District Council
Orono Agricultural Society
Partner Ag Services
John Drummond
Cleave View Farms
West-Central District Council
Floradale Feed Mill Limited
Grand River Agricultural Society
Wellington County Holstein Club
John Deere
WB White Insurance
Willows Agriservices
Leading Edge Overhead Doors
Sargent Family Dairy
Bovikalc Dry
Grand Valley Fortifiers
Northumberland Holstein Club WeCover
Woodstock Agricultural Society
Robert Medwell
Campbellford Farm Supply
Empire Cheese Co-operative
Conestogo Agri
Blondin Sires
Alta Genetics
Crewson Insurance
In addition, Class sponsors of the Inter-County Dairy Youth Judging Competition can be found in the Fall issue of the Link Magazine.
YearinReview
80,936 9,632 94,688
3,145
CLUBS MEMBERS
REGISTRATIONS
EVENTS HOSTED & SUPPORTED:
Club AGM’s, Spirit of 4-H Awards, Ontario Dairy Youth Trust Fund, Provincial Convention and AGM, Dairy Woman Service Award, District Tours, Holstein Canada National Convention, Young Leaders Conference, Provincial Judging Schools, Junior Shows, Twilight Meetings, Inter-County Dairy Youth Judging Competition, European Young Breeders School, US National 4-H Dairy Judging Competition, Ontario Dairy Youth Award, TD Canadian 4-H Dairy Classic, Bred and Owned AwardsNational Holstein Show, Dairy Futures Summit, All-Ontario Awards, Dairy Dynamics Workshop
KPMG LLP
Commerce Place
21 King Street West, Suite 700
Hamilton, ON L8P 4W7
Canada
Telephone 905 523 8200 Fax 905 523 2222
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of Holstein Association of Canada – Ontario Branch
Opinion
We have audited the financial statements of Holstein Association of Canada – Ontario Branch (the Entity), which comprise:
• the statement of financial position as at December 31, 2024
• the statement of operations for the year ended
• the statement of changes in net assets for the year then ended
• the statement of cash flows for the year then ended
• and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2024, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Basis for 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 auditor’s report.
We are independent of the Entity 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.
Page 2
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 Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity’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 the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment 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 the 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 Entity's internal control.
3
• 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 Entity'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 conclusion is based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity 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.
• 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.
Chartered Professional Accountants, Licensed Public Accountants, Hamilton, Canada
February 18, 2025
HOLSTEIN ASSOCIATION OF CANADA –
ONTARIO BRANCH
Statement of Financial Position
December 31, 2024, with comparative information for 2023
Assets
Liabilities and Net Assets
See accompanying notes to financial statements.
On behalf of the Board:
HOLSTEIN ASSOCIATION OF CANADA –
Statement of Operations
Year ended December 31, 2024, with comparative information for 2023
See accompanying notes to financial statements.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Statement of Changes in Net Assets
Year ended December 31, 2024, with comparative information for 2023
See accompanying notes to financial statements.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Statement of Cash Flows
Year ended December 31, 2024, with comparative information for 2023
Investing activities:
See accompanying notes to financial statements.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Notes to Financial Statements
Year ended December 31, 2024
Holstein Association of Canada - Ontario Branch (the “Organization”) promotes and supports the continuing improvement of the Holstein breed in Ontario for the benefit of the members and the dairy industry. Core functions include education, promotion, youth involvement and industry cooperation. The Organization is a not-for-profit organization incorporated under the Animal Pedigree Act and accordingly is not taxable by virtue of Section 149(1)(e) of the Income Tax Act.
1. Significant accounting policies:
The financial statements are prepared in accordance with Canadian accounting standards for notfor-profit organizations. The Organization’s significant accounting policies are as follows:
(a) Internally restricted funds:
The general reserve fund is an internally restricted fund, and its purpose is to maintain an adequate level of reserves to sufficiently cover all outstanding financial obligations for a oneyear period. Such obligations would include salaries, storage of technical data, and the completion any current projects. This fund could also be used to suspend the activity levy for a year should there be any disasters in the dairy industry.
(b) Contributed materials and services:
Contributed materials and services which are used in the normal course of the Organization's operations and would otherwise have been purchased are recorded at their fair value at the date of the contribution if fair value can be reasonably estimated.
(c) Revenue recognition:
The Organization follows the deferral method of accounting for contributions.
Services for membership fees and activity levies are recognized as revenue when service ls rendered. Magazine revenues are recognized as revenues when the issue has been distributed and no significant obligations are remaining.
Promotion, youth program and miscellaneous revenues are recognized in the fiscal year the service is provided.
Unrestricted investment income is recognized as revenue when earned. Any investment income earned on restricted investments is recognized through the statement of operations.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Notes to Financial Statements (continued)
Year ended December 31, 2024
1. Significant accounting policies (continued):
(d) Financial instruments:
Financial instruments are recorded at fair value on initial recognition. Freestanding derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. The Organization has elected to carry investments at fair value.
Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight-line method.
Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Organization determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount the Organization expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future period, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.
(e) Capital assets:
Capital assets are stated at cost less accumulated amortization. Amortization is provided using the straight-line method with a salvage value of $5,000 over the useful lives as follows:
(f) Impairment of long-lived assets:
Management reviews the carrying amount of long-lived assets for impairment whenever the events or changes in circumstances indicate that the carrying amount may not recoverable. Any impairment determined by a comparison of the estimated undiscounted future operating cash flows to be generated by the asset with its net carrying value is written off at the time of impairment.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Notes to Financial Statements (continued)
Year ended December 31, 2024
1. Significant accounting policies (continued):
(g) Use of estimates:
The preparation of financial statements in accordance 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of investments and carrying amount of capital assets. Actual results could differ from those estimates and may have impact on future periods.
(h) Income taxes:
Holstein Association of Canada - Ontario Branch is a not-for profit organization under the Income Tax Act and therefore is not subject to either federal or provincial income taxes.
(i) Foreign currency translation:
Foreign currency transactions are translated at the rates of exchange in effect at the dates of the transaction. Resulting foreign currency denominated monetary assets and liabilities are translated at the rates of exchange in effect at the balance sheet date. Gains and losses on translation of monetary assets and liabilities are included in net income.
2. Transactions with Holstein Association of Canada:
The Organization is a provincial branch of the Holstein Association of Canada (the “Association”). Each member of the Association is independent and is charged an annual membership fee and a levy that is invoiced and collected by the Association and remitted to the provincial branches pursuant to the by-laws of the Association. Any unpaid amounts at year end are included in accounts receivable. Vehicle insurance and employee benefits are administered by the Association. Due to the structure of the Organization, various operating transactions occur between the Organization and the Association throughout the year.
The Organization occupies space in the Association’s building and receives accounting services provided by the Organization. During the year, rent and accounting services in the amount of $18,587 (2023 - $14,903) were paid to the Association and included in office supplies and administration and professional fees on the statement of operations.
HOLSTEIN ASSOCIATION OF CANADA –
Notes to Financial Statements (continued)
Year ended December 31, 2024
2. Transactions with Holstein Association of Canada (continued):
At December 31, 2024, amounts due from the Association included in accounts receivable on the statement of financial position were as follows:
3. Investments:
consist of the following:
Gay Lea
(2024 – 11,103;
The guaranteed investment certificates have effective interest rates of 2.47% to 4.92% per annum and mature between January 2026 and December 2027.
In the current year, the value of investments internally restricted in the general reserve fund in the amount of $401,268 (2023 - $451,268) are comprised of guaranteed investment certificates, Canadian preferred shares, Canadian fixed income, Canadian equities and foreign bond and equity funds and Gay Lea shares.
HOLSTEIN ASSOCIATION OF CANADA –
Notes to Financial Statements (continued)
Year ended December 31, 2024
4. Capital assets:
5. Bank indebtedness:
The Organization has an available credit facility on their Visa in the amount of $20,000 (2023$20,000). The Organization had undrawn credit capacity under this facility of $15,617 (2023$20,000) with an interest rate of 19.99% on overdue balances.
6. Due to Districts:
The Organization holds funds transferred from the Districts in the amount of $24,111 (2023$32,674) that were generated from matured guaranteed investment certificates. At December 31, 2024, the Organization presents the balance as an amount due to Districts.
7. Deferred revenue:
Deferred revenue represents membership fees, magazine ad revenue, and sponsorships received in the current year that relates to the subsequent year.
8. Internally restricted net assets:
An internally restricted fund, called the General Reserve Fund, was created by the Board of Directors to cover a portion of the financial obligations for a one-year period. The fund target is 75% of expenses, using a three-year rolling average.
During the year the Board approved a transfer of $50,000 from the internally restricted fund to the unrestricted fund (2023 - $30,000).
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Notes to Financial Statements (continued)
Year ended December 31, 2024
9. Financial instruments:
(a) Credit risk:
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Organization is exposed to credit risk resulting from the possibility that a customer or counterparty to a financial instrument defaults on their financial obligations; if there is a concentration of transactions carried out with the same counterparty; or financial obligations which have similar economic characteristics such that they could be similarly affected by changes in economic conditions. The Organization's financial instruments that are exposed to concentrations of credit risk relate primarily to accounts receivable.
The Organization has significant financial exposure to one counterparty which accounted for 71% (2023 – 58%) of accounts receivable.
(b) Limited counterparties:
A substantial portion of the Organization’s revenue in 2024 was derived from revenue from one (2023 – one) counterparty which accounted for 77% (2023 – 72%) of total revenue.
(c) Liquidity risk:
Liquidity risk is the risk that the Organization will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, the Organization will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset. The Organization is exposed to this risk mainly in respect of its accounts payable.
The Organization's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient cash flows to fund its operations and to meet its liabilities when due, under both normal and stressed conditions. The Organization maintains a portion of its invested assets in liquid securities.
(d) Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Organization is exposed to changes in interest rates related to its investments in marketable securities. The Organization's primary objective is to ensure the security of principal amounts invested and provide for a high degree of liquidity, while achieving a satisfactory return.
The Organization mitigates interest rate risk on investments by diversifying the durations of the fixed-income investments that are held at a given time and by investing in fixed income vehicles backed by a chartered bank.
HOLSTEIN ASSOCIATION OF CANADA –ONTARIO BRANCH
Notes to Financial Statements (continued)
Year ended December 31, 2024
9. Financial instruments (continued):
(e) Currency risk:
Currency risk is the risk that the fair value or future cash flows of certain foreign denominated financial instruments within the investment portfolio will fluctuate because of changes in foreign exchange rates. The Organization considers this risk to be acceptable given their limited exposure and therefore does not hedge its foreign exchange rate risks.
(f) Market risk:
Market risk is the risk to which the return on the investment portfolios exposed and stems from fluctuation in rates and the degree of volatility of these rates. Accordingly, a change in market rates will affect the fair value of these investments.
There have not been any changes in the risks described above from the prior year.
10. Comparative information:
Certain comparative information has been reclassified from those previously presented to conform to the presentation of the fiscal 2024 financial statements.
2024 All-Ontario Holstein Competition
CLASS
Summer Heifer WCG MAJOR LISA
Willowcreek Genetics
Spring Heifer LOA-DE-MEDE DESTINATION LINDOR
Loa-De-Mede Farms Ltd
Winter Heifer OCONNORS IMPACT SPICE
O’Connor Land And Cattle Co, Parbro Farms, Barclay Phoenix (Current Owner Jacklin, Kylie And Catie Osinga)
Fall Heifer YELLOWSTONE TAMARA-ET
Velthuis Farms Ltd
Summer Yearling UNIQUE RED-CARPET FLAIR
Clarkvalley Holsteins, Rhonda Cochrane, Tristan Rae
