Blood Tribe Agricultural Project (1991) Spring Update 2018
Table of Contents
Page 3 Co-Management Update Page 4 Chiefs Message Page 5 Chairmans Message
Page 6 General Managers Report Page 7 General Managers Report Page 8 General Manager Report Page 9 General Managers Report Page 10 Map of BTAP Page 11 Map of BTAP Page 12
Feature Report - Japan Tour
Page 13 Japan Tour Page 14 Japan Tour Page 15 Japan Tour Page 16 Operation Technician Update Page 17 Maintanance Supervisor Update Page 18
Human Resource / Office Manager Update
Page 19
Tribute to Andy Black Water 2
Blood Tribe Agricultural Project (1991)
Spring Update 2018
Blood Tribe Agricultural Project (BTAP) (1991) Co-Management Update
May 2016 - BTAP was placed under Co-Management by Chief and Council. The stages of Co-Management include;
Phase 1 – Crisis Management phase dealing with cash shortfalls, accounts payable etc., Phase 2 – Stabilization and Transition phase which include deficit recovery plan, monitoring, budget and workplans. Phase 3 – Development and compliance with a Remedial Management Plan thru quarterly financial monitoring, development of financial policies and procedures, monitoring of budgets and workplans. Progress has been made in regards to the stages of CoManagement and BTAP is currently in phase 3 of the CoManagement process. A Remedial Management Plan (RMP) has been developed which outlines objectives and deadlines to ensure strong Managerial and Financial processes have been developed and adhered to. As well as compliance with the approved deficit recovery plan. The RMP process also included the review of the Organizational Structure along with capacity development to supplement workplan and budget objectives. BTAP is incompliance with the Remedial Management Plan and are currently in an organizational and financial rebuilding year. Monthly Financial and Treasury monitoring takes place to ensure plans are adhered to.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Nikso’kowai Kainaiwa Our council, Board, Staff and business friends have worked hard to successfully turn around the agricultural and business operations of our BTAP so that we are now enjoying real profits and new opportunities for our members. Ever since we revitalized our original business methods that we began with many years ago, we are once again establishing our leadership in irrigation farming and the value-added and downstream aspects of our total agricultural operations. We continue to develop and refine our own business and technical capacities and we are engaging profitability with our business associates and partners towards a mutual beneficial strategy that will continue to strengthen our financial sovereignty. BTAP will guide our global agricultural developments that we will pursue over the next few years and our operations and opportunities have gained the interest and confidence of the agricultural and business sector. We can and we will enter into business arrangements and partnerships that will result in a bigger and greater financial return for the Blood Tribe over the next few years. With and through our trustworthy business partners and friends we can forge one of the biggest agricultural conglomerates in North America and we are already planning and developing those strategies. With your continued support, we will carry out our agricultural and business responsibilities in formulating the best arrangements that will truly reap the best profits for Kainaiwa and our trustworthy business and agricultural partners. Thank you everyone and let us continue to prosper and grow. Blood Tribe Agricultural Project (1991)
Makiinima
4 Chief Roy Fox
Blood Tribe Agricultural Project (1991)
Spring Update 2018
BTAP Chairman’s Message
Mr. Hank Shade Report to Community #2 Spring/Summer update
Oki and welcome to our second report to the community from the BTAP organization. We feel it is important to continue reporting to the community with information sharing and transparency. I would like to thank the Board, staff and advisors for their continued hard work and support of the project. It is through this team effort that we are able to realize on the agricultural opportunities on the BTAP head lease lands. The following report covers all aspects of BTAP operations and we hope you find this informative. Now that we have stabilized operations, we are planning for the future. We will be extending our lease arrangements to enable us to promote better soil/crop management. There will need to be investments in infrastructure upgrades and replacements on 20+ year old equipment. Our forage processing requires more involvement in the marketing aspects. Thank You for taking this time and opportunity for BTAP to share with the community all the excellent work that has been completed at BTAP.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Blood Tribe Agricultural Project (1991) (BTAP) Update Spring 2018
Levi Blackwater General Manager Report
Oki, I extend greetings on behalf of the Board of Directors and staff BTAP. As we look forward to another growing season we also need to look back at the previous year that was. The 2017 crop year blessed us with great weather and produced above average crops, as this report progresses the various Division Supervisors will summarize their operations.
BTAP Agriculture Asset Review We have stabilized the company through a cash management plan and have done a thorough review of all operations and related costs to effect additional cost efficiencies and sound business plans. The Board approved a Strategic Plan that would address; Critical Issues.
Action Plan 2017/18
Pay off debt and transfer Blood Band Ranch out of BTAP.
Complete wind-up of custom farming operation and initiate sale of surplus equipment (approx. $1.5 million).
Develop custom forage harvest operation for Blood Tribe Forage.
Finalize accounting/reporting systems for all BTAP entities and implement cash flow forecasting and cash management systems.
Execute contracts for new hay storage shed (6,000 MT) and Lateral A pivot refurbishment (total estimated cost - $2,000,000).
Finalize bank participation – increase current hay shed loan from $2 to $3 million, extend amortization of shed loan and add $1.5 million bump to line of credit to cash flow sale of equipment.
Rationalize management, maintenance and operations costs at AOHKII (BTIM) and initiate phase-in (3 years) of original “irrigation mall” model: 6
Blood Tribe Agricultural Project (1991)
Spring Update 2018
Allocation per Acre
Annual Allocation
Dryland Rent Pivot Replacement Reserve Pivot Maintenance Reserve Utilities Management Operations New Capital Investment Dividend to Tribe
$1,140,000 475,000 475,000 95,000 570,000 570,000 475,000 $3, 800, 00
1.
$60 25 25 5 30 30 25 $200
Current Financial Situation:
2017/18 Financial Update Liquidity Cash
July 31/17 $(93,000)
AR
1,860,000
2,009,700
$1,767,000
$3,274,600
1,730,000
788,000
$37,000
$2,486,600
3,300,000
2,692,900
Working Capital Add: Saleable Chattels Less: External Debt
$3,337,000
$5,179,600
8,500,000
7,800,000
4,530,000
4,039,000
$7,307,000
$8,940,530
Less: Payables
Quick Assets Add:
Inventory (MV)
Net MKT Assets
December 31/17 $1,264,900
2. Core Business – Pivots and Infrastructure Assets (canal etc.) are deteriorating, historically capital assets were “spent” to provide operating cash flow.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Irrigation Assets
Province of Alberta funded study to assess off-farm assets (canal and reservoir) and dam safety. Negotiations to include BTAP in Irrigation District Rehabilitation funding (Provincial) on-going.
BTAP initiating six (6) year refurbishment plan on pivots/pumps starting summer of 2018. Total estimated cost:
Lateral Supply/Install A (2018)
$740,000
B (2019)
678,000
H (2020)
392,000
C (2021)
372,000
D (2022)
470,000
E (2023)
587,000
$3,240,000
3. Land Tenure – Rectify default position, extend Headlease. Council appointed a Negotiating Team to engage with AANDC to resolve matter. Tribe/INAC have agreed to extend the BTAP Agriculture Lease – Term to be determined. BTAP will pay fair market value dryland rental rate to Receiver General. End-use subleases will be for five (5) years – BTAP will reserve right to supply inputs/services and to aggregate/purchase production. Longer end-user terms will encourage end-users to invest in high value crop cycles (increased rent), allow Tribe to develop agri-business value chain, and allow BTAP to monetize the leasehold interests (secure capital).
Update Corporate Structure
Modernizing the corporate structure to become more streamlined was accomplished, in short, the 12 companies (6 Newco and 6 Leasco) that were required in building the project have been wound up and Aohkii (2018) Ltd has been established. The 12 companies were required for the 6 phases of BTAP and held assets (pivots, pumps etc.). These assets were transferred to Aohkii (2018) Ltd. BTAP (1991) holds the Headlease 4
subleases to Aohkii (2018) Ltd 4
Enduser sublease to Lessees
Action Plan 2018/19
Complete new hay shed for 2018 crop year. Finish Lateral “A” pivot refurbishment for 2018 crop year. Sell surplus equipment (approx. $1.5 million) Implement custom forage harvesting operation at BTFP. Manage/harvest approx. 4,000 acres of BTFP forage (16-18,000 MT). Purchase 12-14,000 MT of export forage from other BTAP forage growers. Store, process for export (27,000MT) Create JV with Olds AG Tech to market hay – transition to full marketing operation. Continue deficit recovery.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
All Enduser Sublease Contracts have been finalized for the 2018 crop year, BTAP has put emphasis on attracting new Lessees. We are happy to welcome these new producers, one in particular, Mr. Stu Healy of the Blood Tribe. We wish all the best in the upcoming year. In closing, I am proud of the group effort of those involved in the road to recovery of the Blood Tribe Agricultural Project, to CoManagement for their dedication, to the Board for their vision, PM Associates for their advice, the Elders for their prayers and the staff for their continued hard work. Blood Tribe Agricultural Project (1991)
Levi Blackwater General Manager.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Japan Tour CUSTOMER VISIT Charles Mistaken Chief | March 18-25, 2018  Oki, on behalf of Blood Tribe Forage Processing Plant I would like to extend greetings on behalf of staff and myself. I had the opportunity to travel to Japan on behalf of the Blood Tribe Forage Processing Plant. This trip to Japan gave me the opportunity to engage the customers and visit/tour their facilities and see the actual product being used and how it’s being used.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Day 1
First day of the Japan tour we visited Sanyu Shoji Co Ltd we travelled by train to Oyama, which is north of Tokyo, we were picked up by one of their representatives at the train station. We then went to their head office and toured their storage facility, met with the Manager and sales reps, and discussed product delivered and any issues with quality and packaging. Some points that were brought up by their managers are: − We had no issues with quality this year and they were quite satisfied with our product; − One issue was with a shipment of timothy, they didn’t like the way it was packaged; − We didn’t have enough of the quality they prefer which was #1 product; − They asked if we would still be able to continue with same quantity that we shipped this new crop season and we assured them that we would still be able to. The following are pictures of their facility and product. Manager did not want take a photo. After meeting with sales reps and the manager we were invited to have lunch. We returned back to Tokyo by train and met with Mr. Ishio Kaise owner of Ataka Trading. We discussed shipments, inventory and any issues with the product. We then we were invited to have supper after meeting.
Day 2
On Day 2 we travelled south by train, and drove by car to Mount Fuji area and visited 3 places. First was a distribution area which had a small dairy of approximately 50 head of Holstein cows. This place had 6 containers that stored product from different suppliers, including ours. It held a group of dairy farmers’ supply of Timothy and Alfalfa which was delivered to others in the area when needed. After meeting the farmer who stores the product for local group of Dairies, we went to another dairy that uses our Timothy. The farmer stated that since he
started feeding BTFP product his dairy production increased by 20% and was quite satisfied with the quality of the product he has been receiving from us. The next customer we went to meet was a little further up to the base of Mount Fuji. There were no issues reported with product we have sent. This customer did not want to have pictures taken of himself, so I took a picture of his main office. This farmer had a 300 head dairy operation. Once were done touring these 3 farms we went on to Mount Fuji hot springs resort where we spent the night there in a cabin.
Day 3
On day 3 we left the resort and travelled to another dairy farmer which feeds our big bale to their dairy cows. This farm has a fully automated milking system and the cows basically milk themselves. When each cow feels pressure in there udders, they walk into the milker and it scans the cow, cleans teats and automatically milks the cow. Once done the cow goes back into the barn. The farmer stated that it was fairly easy to manage his heard. He is a second generation farmer inheriting the farm from his father. After meeting with customer we then travelled to Fuji by car and visited a beef producer, which had around 200 head cows in different stages of development. They were feeding their calves our soft product.
After visiting these two farms we went back to Fuji and then travelled by train back to Tokyo where we met Mr. Kaise from Ataka trading we discussed product and bookings remaining on an order.
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Day 4
On day 4 we travelled by train north of Tokyo to visit a farm that Olds Ag Tech (O.A.T.) supplies with their big bale. We discussed the shipment of our big bale that replaced their product as there press was down and could not send shipment so we sent them ours instead. Other farms in this group do receive our product. After meeting with customer we went to relax in natural hot springs. We then travelled back to Tokyo.
Day 5
On day five we travelled to Kobe, Japan by train and met Fuji Trading President. From Kobe we all then travelled by car to the west end of Japan, to the city of Toyooka where his family dairy was located. we toured his facility and met with his father who still works with him part time. We supply Fuji Trading with soft timothy which is fed to calves for fiber intake. They were very satisfied with the product being supplied. After the tour and meeting we spent a night there.
Day 6
On day Six we toured one of Japan’s oldest castles which is said to be more that 2 centuries old. Which belong to an emperor. In the afternoon we travelled by car back to Kobe and then travelled back to Tokyo.
Day 7
Day seven we travelled back to Tokyo hotel located by Narita International Airport. We spent the night. I then flew back home on the next day. I found the trip to be constructive by gaining knowledge of the needs of our customers and the importance of producing good quality hay, for this market.
Thank you, Charles Mistaken Chief Production Supervisor / Quality Control Officer. Blood Tribe Forage Processing Plant
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
Back Ground
IN 1997 709204 Alberta Ltd (operating as the Blood Tribe Forage Processing Plant), was incorporated under the Business Corporation act of Alberta for the operation of a hay processing facility. The Blood Tribe Forage Processing Plant (BTFPP) is a subsidiary company of the Blood Tribe Agricultural Project (1991) (BTAP) and is located on the Kainai Nation in southern Alberta, Canada. The BTFPP, along with other BTAP subsidiary companies, was in a mode of renewal and re-strategizing business operations and direction. In 2010-2011 the BTFP stopped being a custom processing only business for other Canadian hay exporters, and since 2010/11 we controlled all segments of our operation: as the Producer, Processor, exporter and Marketer. In 2017/18 we had a very good growing year as the quality of Timothy produced was 80% premium grade. The alfalfa was also very good quality. We had our challenges during the growing season as the climate was very dry; which was good for growing, but not for moisture. We met our tonnage goals over all, as we averaged over 4.3MT per acre on all BTFP fields.
2018/2019
In 2018/19 season our processing goal is to Process 25 containers per week, 100 containers per month with an end goal of exporting 30,000 MT. We will be establishing 2 new stands of Timothy (477 Acres) for this season and have them ready for export in the 2019 export year. Our yield goals are to product 5 MT/ac with best management and agronomy practices and the assistance of favorable weather conditions. In Total, BTFP will be managing 4400 acres; 3560 acres of timothy and 840 acres of Alfalfa. We will farm 1400 acres with our own equipment and hire custom operators for the remainder. Our transitional period of Co-management has been quite successful and new marketing and custom processing agreements will be re-strategized for the New Year as we are going into a Joint venture with Olds Agtech out of Olds, Alberta. We will partner 50/50 in the purchase of BTFP and on project producers product with additional purchases as needed from off-project suppliers. We will share in the proceeds of sales to over-seas markets at the idea of taking back full control of the Business of Processing and Marketing after the 5 year joint venture has expired. In the first 2 weeks of July we will be tuning up our bale press and have it ready for the new processing season so that we can accomplish our goals set out for the 2018/19 processing year. The Production workers’ work is very consistent and are able to keep up with demand. Working with Olds Ag tech has resulted in more secure inventory controls and put us in a stronger financial position. The BTFPP employs : 16 production crew workers; 2 truck drivers; 1 Production Supervisor/ Quality control; 1 Export Administrator; 1 Accountant; 1 Senior Field Technician; 1 seasonal Jr field technician; 1 Forage Harvest Coordinator; 1 receptionist; 4 seasonal equipment operators; and 8 seasonal harvest crew members.
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Blood Tribe Agricultural Project (1991)
2018 Operations Technician Update
Spring Update 2018
Oki, on behalf of myself and staff I would like to take this time to introduce myself and my role within the B.T.A.P. organization. I am the Operation Technician, what this entails is the overseeing of all the Lessees and preparing the maps and ensuring that all the technical aspects are being monitored properly.
Enduser-Sublease
The lessee’s were given a letter of award and all accepted. The acreages and pivot information was forwarded to Walsh Law for drafting of the Enduser Subleases. The documents were reviewed and after some editing they were ready for signing. The lessee’s came in to sign and the board signed. The documents were sent to Walsh Law for the BTAP seal. We have three new lessees this year. Lowe Ranches Inc. growing cereal crops and Degenstein Farms growing forages. Stu Healy a tribal member is growing alfalfa on two pivot circles this year. Canal Maintenance and Infrastructure The canal infrastructure has been in operation for 24 years now. BTAP reached out to the Government of Alberta to help assess the condition of the canal and reservoir and provide cost estimates for repair and maintenance. Two assessments are being undertaken. First the canal and structures were looked over and the assessment has been completed. The first report concluded the canals and structures are in fair to good condition. The report identified costs to repair structures in marginal condition. Secondly a Dam Safety Review will be undertaken on the Mokowan Ridge Reservoir Dam this year. With the establishment of an ongoing maintenance program, repairs and rehabilitation, the system will provide many years of service The BTAP project is a long term investment for the economic prosperity of the Blood Tribe. BTAP has 18,340 acres under irrigation and can increase up to 25,000 acres. There are plans to develop the remaining 6,000 acres in the near future. The chain link fence around the structures have been repaired over the winter months. BTAP has been managing Mataki Farms for many years now, with 18 pivots irrigating 2200 acres. There are also plans to increase the irrigated acres at Mataki. Thank you,
Phil Eagle Bear, Operations Supervisor Blood Tribe Agricultural Project (1991)
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Blood Tribe Agricultural Project (1991)
2018 Maintenance Supervisor Update
Spring Update 2018
Oki, on behalf of the Maintenance Crew we send greetings from Blood Tribe Agriculture Project (BTAP).
Irrigation Season – Fall 2017 and Spring 2018 We have complete our irrigation season on October 15, 2017. To end the season pivot operators began to drain the main lines and pivots. After the lines were drained we began to pump the pivot points and main lines. We complete our fall shutdown by the end of October. We also had a crew working on clean-up of the canal from the turnout on highway 505 to the end of the canal on highway 509. The crew was responsible for clearing most the overgrown vegetation and repairing the fence and gates as well. This crew worked until the end of December. We were also able to spray round up in a few areas. For the start of the 2018 irrigation season we began on April 3, 2018. This year we decided to go with 8 seasonal employees and 4 permanent. We got off to a good start with our pre-season work, but we were slowed down due to adverse weather conditions. The boys ended up working in the shop, as well as, around the yard. When the good weather returned almost to normal conditions crews were back out to continue pre-season maintenance. We will begin to flush the irrigation systems on May3, 2018. Our tentative date to finish flushing the systems is set for May 15, 2018 with water orders beginning on May 8, 2018 for the forage fields. All other fields can commence to irrigation after May 15, 2018.
New Way Irrigation
This year we are in the process of upgrading lateral A. we will be replacing 3 pivots and refurbishing the other 8 pivots. This includes the changing of gear boxes, tires, motors, panel modules, towers, booster pump boxes and sprinkler packages. This will improve the efficiency of our irrigation systems. Also, we have installed Drop tubing on the pivots to reduce energy and irrigation costs. With equipment being over twenty (20) years old we entered into an agreement with New Way Irrigation. This year New Way will be upgrading lateral A. they will be replacing three (3) pivots and refurbishing eight (8).
Gary Scout, Maintenance Supervisor Blood Tribe Agricultural Project
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Blood Tribe Agricultural Project (1991)
Spring Update 2018
2018 Human Resources Office Manager Oki, On behalf of Management, we send greetings from Blood Tribe Agriculture Project (BTAP) and we would like to thank you for the support given to our organization. To all staff we would like to thank you for your continued dedication and commitment, your hard work has not gone unnoticed. I have recently taken the role as Human Resource/ Office Manager at BTAP, starting in January 2018. There have been a few concerns that I have come across since working with the organization, and am currently working on these. First of all was the status of employees, which has been corrected to ensure job security for all our dedicated employees. Second, the organizational structure. We are currently working with all Division Supervisors/ Managers to ensure that the restructuring of the organization meets BTAP’s mission and goals. Third, there were no established policies for Personnel,
Operational, Safety, and Financial. The organization had adopted Blood Tribe Administration’s personnel policy to assist. This policy needed to be changed to fit the organization, which I can say that as of April 25, 2018 BTAP’s Board of Directors has approved and made effective BTAP’s Personnel Policy. My next steps are to start on developing an Operational and Safety policy, which I hope to have done and approved by the third quarter. We would again like to thank all employees of Blood Tribe Agricultural Project for their continued dedication to the organization, without you BTAP would not be producing the quality exports that we do. To the community and leadership, we would like to thank you for your continued support in helping us develop this organization to be the best that it can be. I will continue to do my best to ensure that all my decisions are what is best for the employees, and shareholders.
Jennifer Many Bears Human Resource/Office Manager Blood Tribe Agricultural Project 18
Blood Tribe Agricultural Project (1991)
Spring Update 2018
TRIBUTE TO A LIFE WELL LIVED
ANDY BLACK WATER Aatso’taowa, a member of the Fish Eater Clan, Mamioyiiksi, played many roles in the community and contributes to all areas of the community life including social, economic, cultural, spiritual and political. As well as being a one of our long-time political leaders, Aatso’taowa was an entrepreneur, educator, ceremonialist, mentor, historian and philosopher. He was a visionary; he knew that what he fought for would be for the longterm benefit of his people for generations to come. Aatso’taowa was a humble, kind and gentle person, never seeking personal accolades. He was always willing to share his knowledge. He was genuine in his efforts to advance the interests of both the Tribe and individual members. He was always proud of the achievements of his family, both immediate and extended, and also the achievements of all tribal members. He lived his life by the Core Values and Traditional Laws of Kainai. Aatso’taowa was indeed the Father of All. He will be greatly missed and forever remembered for this leadership, wisdom, humour and gently spirit. Blood Tribe Tribal Government May 14, 2018 19
Board of Directors President Hank Shade Vice President Lance Tailfeathers Secretary Treasurer Kyla Crow Board Member Marcel Weasel Head Board Member Kirby Many Fingers Ex-Officio Chief Roy Fox (Makiinima)