Report to the Board

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Table of Contents Message from the Chair

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Equine Traceability

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Equine Code of Practice Renewal

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Priority Welfare Issues for the Equine Code of Practice The Role of Codes of Practice as Reference Material for Regulations

National Equine Industry Forums

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Shaping the Future of the Horse Industry Forum I Forum II Marketing the Canadian Equine Industry

2012 EC Convention and the Industry Division Delegate Assembly

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Canadian-bred Horses and Canadian Breeders Honoured by Equine Canada

Developing Our Export Markets

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China - Seizing Opportunities through Focused Marketing

Representation on National Agricultural Organizations

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National Farm Animal Care Council (NFACC) Canadian Animal Health Coalition National Farmed Animal Health and Welfare Council

About Industry

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Association Members Industry Council 2012 Industry Council 2011

INDUSTRY COUNCIL Cover Photo Courtesy of W. Charlot Farms, Stratford, Ontario

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Message from the Chair We recognized the need to bring stakeholders together to tackle the issues and develop solutions. In November, we invited breed association strategists and decision makers to a two-day industry forum in order to identify opportunities for, or barriers to, growth and sustainability. Equine Industry Forum I prioritized the challenges we are facing, and began the work of developing specific strategies and actions to overcome identified obstacles. A second industry forum was then held as part of our annual meeting during the Equine Canada national convention to continue the work begun in the first forum. Dr. Edward Kendall Chair, EC Industry Council

Welcome to our 2011 Industry Division Annual Report to the Board. As you will read on the following pages, the division has been very busy working on behalf of its members making significant gains in terms of industry and government relations to affect positive changes to policies and programs impacting our daily businesses. In 2011 we released the results the 2010 Canadian Horse Industry Profile Study. The primary objective of the study is to have a comprehensive snapshot of the industry nationally in order to identify areas of concern for our industry. Given this is our third study we were able to identify trend lines regarding ownership, investment and popularity. I strongly encourage you to visit our web site to read part or all of the report. Canada’s Equine Industry is at a crossroads: on the one hand there are unprecedented opportunities to develop and market Canadian-bred horses and equestrian activities. On the other hand current economic factors, notably the lack of export markets, high taxation and a flood of horses coming in from the United States, undermines our financial stability and hampers growth.

The outcome from Forum I saw participants agreeing upon the following key areas of focus going forward: » Development of a Generic Marketing Plan for Industry » Advocacy to Correct Taxation and Market Issues Hurting Industry » Development of Best Business Practices The Generic Marketing Plan speaks to the general need to promote the horse and the public’s connection with the horse. Forum participants determined the best way to grow the business of horses was to promote the horse, known to be the most-loved farm animal. Participants also agreed that no one organization could undertake such a sustained campaign, but that each association might contribute a little towards a national campaign. The Forum agreed that while breed promotion may work on the already indoctrinated, in order to grow the market, horses must become a part of the lives of more Canadians. Policy development around best business practices was brought to the Forum by a number of associations. The goal here is to provide a “code” if you will, concerning the commerce of horses. The best business practices being developed will be supported by various rules

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of business. For example, it may be a recommended practice that buyers ensure their agent is not also representing the seller, or double-ending on the sale. Fairer taxation for the horse industry has been part of the Equine Canada mantra from the outset. Horse owners pay hundreds of millions of dollars in GST to the federal coffers, thus the government is reluctant to zero rate horses as it has other livestock. Equine Canada has been carefully building the case for horses to be reclassed as livestock, thus substantially lowering what we pay in GST and putting us on an equal playing field with other agri-businesses producing and caring for livestock. Many of you will be acquainted with our vibrant Export Market Development program and the number of trade missions we have conducted over the past few years to promote the Canada Brand. Please be sure to read about our most recent activities to expand market opportunities for breeders. Most recently however, our attention has turned to the imbalance of trade between Canada and the United States, with that country literally dumping cheap– valued at approximately $250 and lower– horses for processing. The impact of this has led to a reduction in the sale price of middle to-low-end horses and loss of auction market opportunities for cull, surplus or aged horses. Imports of horses from the US have doubled, rising to more than 80,000 per annum in less than four years. At the same time, Canadian production has fallen from 45, 000 to 30,000 per year. Our industry cannot be sustained under such circumstances. At a minimum, we want these imported horses meeting the same requirements we currently place upon Canadian-produced horses: they must be individually identified and have certified health

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records. Such conditions are an integral part of the equine identification proposals we have already drafted for the country as part of the national equine traceability program. But sadly, our work and this program has stalled at the moment due to what we believe are government budgetary constraints. This news was announced to our members at Equine Industry Forum II and, admittedly, created a great deal of concern and debate. The Forum unanimously agreed the horse industry should not proceed with regulations without properly financing the infrastructure to support regulatory requirements. Further, the delegates directed that an alternative, ‘industry only strategy’ be developed to maintain a national electronic ID and traceability program. The most promising of the strategies discussed proposes the implementation of a check-off at processing ($10 per head). Producers will bear most of the costs and all of the risk in bringing their animals to market, but in return they’ll get quality assurance data. And, intermediate owners who bear the risk of maintaining the animals will have a history on which to base purchase, and at the end of life, the processors will have the benefit of lifetime records. The format of the industry forums, which provide a venue for collaborative decision making on key issues among stakeholders, is proving very productive and will form the nexus of the Industry Division’s ongoing policy and program development strategy. Thank you for your on-going participation in, and support of Canada’s equine industry. Our unified voice on behalf of the horse will be heard. Dr. Edward Kendall Chair, EC Industry Council


Equine Traceability In December 2011, Equine Canada was informed by Agriculture and Agri-Food Canada (AAFC) that funding for the development of equine traceability (CanEQUID Program) under the Canadian Industry Traceability Infrastructure Program (CITIP) of Growing Forward has been placed “on-hold”. Based on information provided by AAFC program representatives, it is expected that current traceability development timelines and budgets will not see action for the foreseeable future.

CanEquid codifies systems for identification, health status, medications control, transaction monitoring, transport and co-mingling. The goal is to minimize

Photo © Dazzle by Design

The CanEQUID Program grew from our interest in performance and pedigree tracking. The United

Kingdom’s ‘foot and mouth’ disease outbreak and the Canadian BSE disease outbreak brought animal health and risk management to the fore in our planning. We were approached by AAFC and their enforcement branch, the Canadian Food Inspection Agency (CFIA), to include food safety considerations in our design. The design work was completed in 2005. In the period from 2006 to 2009 several documents were created for AAFC. These included an Action Plan and a Strategic Implementation Plan.

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risks for the equine sector and, by implication, the Canadian public and international trading partners. In the latter case, it provides a mechanism to ensure that horses that have been treated with restricted drugs do not enter the food chain. In addition, it provides a mechanism for biosecurity trace-back to mitigate management of a disease outbreak. Of course, it also fulfills our initial goals: it provides a mechanism for lifetime performance tracking. The Federal Government has stated that it will not support equine traceability for the foreseeable future. However, the Federal Government still appears to want regulations that will apply to horses. We are greatly concerned this will put the costs for equine traceability onto owners and producers.

Photo Š Dazzle by Design

We believe we have an alternate strategy. First, the high cost elements of traceability are lifetime health and medications monitoring. These are essential for food safety, but it is the processor not the producer that profits from this. At the present time, the vast majority of horses for processing come from the United States. Our plan will seek a $10 check-off at the processing plant to support traceability. If this is not forthcoming, we need to ask the question: Should Canadian horse owners have to pay for a traceability system in order to process American horses that are exempt from these costs? Although we have been asked to continue with consultations on the development of federal regulations requiring traceability for the equine sector, our position, clearly stated since 2005, is that we do not want regulations ahead of publicly supported infrastructure and the methodology to support them. Equine Canada will forge ahead with the program using the principles it has espoused from the outset: minimum cost, maximum benefit, rules-of-business driven, phased-in and fair. These elements were discussed at the Industry Forum II held as part of the Industry Delegate Assembly during the Equine Canada Convention in St. John’s, Newfoundland, on February 3-4, 2012.

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Equine Code of Practice Renewal As a member organization of the National Farmed Animal Care Council, Equine Canada, through the Industry Division, has been leading the effort since 2005 to update the 1998 Code of Practice for Horses. The Codes of Practice are nationally developed guidelines for the care and handling of the different species of farm animals. They are intended to promote sound management and welfare practices through recommendations and requirements for housing, management, transportation, processing and other animal husbandry practices. Requirements refer to either a regulatory requirement or an industryimposed expectation of best practices to encourage a higher level of care.

Priority Welfare Issues for the Equine Code of Practice:

As a result of its efforts, Equine Canada received notice from NFACC in April 2010 that federal funding of upwards of $300,000 over three years was confirmed in order to cover the costs to renew the Code of Practice for Horses.

» Disease prevention

Once funding was announced, Industry Division’s role was to facilitate the organization of the Equine Code Development Committee (CDC). In May 2010, it convened the Code Criteria Group which developed criteria for the CDC. Through a nomination process that involved input from the EC Sport, Recreation, Provinces and Industry Divisions as well from breed associations, equine sector organizations and provincial and federal governments, the equine CDC was formed in December 2010 with 18 stakeholder representatives from eight provinces. Participants on the equine CDC represent a broad cross-section of the industry in Canada, with significant expertise in care and custody, equine health and veterinary care, technical knowledge, research, welfare legislation, regulation and enforcement, environmental and ecological science, biosecurity, and international best practices. Expertise in the unique

Facility Design/Housing » Turn-out, social opportunities, foraging opportunities, provisions for daily exercise » Housing risks associated with stereotypic behaviour and management of the stereotypic horse » Inadequate housing (isolation, confinement, lack of enrichment, social behaviour, ventilation, bedding) » Stall sizes (box, tie, foaling) » Requirements for shelter and shade

Equine Health » Lameness » Painful Practices: freeze and hot iron branding; modifications of the tail; freeze and pin firing; soring; and castration » Hoof care

Handling and Training » Learning theory as it relates to training and handling » Training methods - does the scientific research suggest a benefit to common methods used? » Head shaking

Feed and Water » Water requirements in winter » Feeding behavior » Distil the more specialized nutritional issues into management components related to welfare » Obesity » Thermal impacts on nutritional/energy needs » Laminitis

Feedlots » Stocking density

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The Code Development Committee at at a face-to-face meeting in April 2012

husbandry practices required for large-scale equine breeding, feedlot management, draft horses, race horses, donkeys and mules, Quarter Horses, Arabians, and horses used primarily for the equestrian sports of jumping, dressage and eventing, as well as driving, western sport, recreation and outfitting, are wellrepresented. Following the national development and 2009 approval of the NFACC Code Development Guidelines, the equine CDC will work with the Equine Scientists’ Committee, assembled by NFACC, to develop the new Equine Code of Practice planned for release in 2013. In developing each section of the Code, the CDC has reviewed key points about the Code process and guiding principles. Codes should be based on sound science; recommend practices that are practical, manageable and consider economic impacts; be clearly written; and include acceptable practices that have measureable components. Codes of Practice serve three main purposes: (1) educational tools; (2) foundation documents for assessment programs; (3) reference materials for regulations.

In terms of the Codes serving as a reference material for regulations: regulations pertaining to on-farm animal care are handled by provincial legislation and the Criminal Code of Canada. Most provinces have animal protection legislation, and, generally, these regulations exempt practices that are ‘reasonable and generally accepted’ from charges of wrongdoing. As an example, if a case of suspected cruelty is brought before the courts, the courts will refer to the relevant legislation but will be looking to the Codes of Practice, which ultimately help to establish what is ‘reasonable and generally accepted.’ There are important differences in exactly how Codes are referenced in the legislation of different provinces. However, generally the Code requirements are particularly relevant as they outline either existing regulations or legislation that must be followed and/or outline what is acceptable and unacceptable. Therefore, the CDC is working to ensure that the Code Requirements are clearly written to not only assist those involved with enforcement but will also allow equine owners to feel confident they have implemented Code requirements properly on their farm.

More information on the Code Development Process is available at www.nfacc.ca/code-development-process.

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National Equine Industry Forums Shaping the Future of the Horse Industry In the fall of 2011, Equine Canada hosted a first in what will hopefully be a series of equine industry forums. The purpose of the forums are to bring breed registries and industry association representatives, as well as Equine Canada Industry Council members, together to discuss current issues facing Canada’s equine industry, as well as potential strategies for sustainability and growth. Last November, 36 representatives designated from breed registries and industry associations, as well as Equine Canada Industry Council members, gathered in Toronto, Ontario. Forum I – Shaping the Future of the Horse Industry was a welcome opportunity for those in the industry to share their concerns regarding a number of issues impacting those breeding, developing and supporting horses for sport and recreation. A number of attendees expressed their appreciation for the opportunity to gather.

On the second day, participants received an update on the national equine traceability program and Equine Canada’s CanEquid strategy and ongoing discussions with Agriculture and Agri-Food Canada. Later in the day a working group addressed issues and concerns around the implementation of a national identification program and provided welcomed input on considerations going forward. Forum participants indicated a strong desire to keep working together to move the collective agenda forward, as well as ways in which it could continue information sharing through new media. They also agreed that Equine Canada was seen as the most appropriate national body to guide and support the work begun at the forum.

Prior to attending the Forum, attendees were asked to complete an online survey intended to identify the opportunities and issues faced by their specific organizations. In addition, they were encouraged to read the “State of the Industry at a Glance” chapter from the 2010 Canadian Equine Industry Profile Study and OUR INDUSTRY: Issues and Opportunities – FALL 2011, both of which can be found on the EC web site under the Industry - Government Relations section.

As a result, a second forum was organized in conjunction with Equine Canada’s National Convention during February 2012 in St. John’s, Newfoundland. The second forum provided an opportunity to recap the outcomes from Forum I and to address the key areas of focus identified for the industry as it moves forward to address of market growth and sustainability. Prior to the full-day, the Industry Division of EC held its annual Delegate Assembly wherein members had an opportunity to meet face-to-face to discuss the regular business of the Council and to provide input on the core work of the Council.

On the first day there was an extensive plenary session on themes and priorities facilitated by Vel Evans, owner of Strategic Equine and author of the 2010 study.

The following is a summary of the highlights and action items coming forward from Forums I and II Shaping the Future of the Horse Industry.

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Forum I Based on the input and plenary sessions, the concerns raised regarding the state of the industry by members could be categorized within the following two economic pillars: The Supply of Horses » Inventory » Production of horses • Quantity of production • Quality of production • Costs of Production The Demand for Horses » Markets / Developing New Markets » Selling Prices » Costs to Participate » Youth Participation in the Industry

Best Business Practices Update At the first Forum, the need for a working group to develop Best Business Practices was identified and created. Mike Boyd, President, Canadian Hanoverian Breeders Association and member of the Industry Council, agreed to head up this group. Joining him are Mara Coote-Freeman, former Manager of Continuing Education Programming in the School of Animal Science, Olds College in Alberta, and Victoria Kendall, Secretary, Canadian Warmblood Horse Breeders Association, Saskatchewan. The group is making significant progress on a number of fronts, gathering resources to produce a toolkit for horse buyers and sellers, that includes such things as buy/ sell agreements, pre-purchase exams and more. They are also researching industry standards regarding the interpretation of pre-purchase radiographs and will report back to the EC Industry Council.

» New Investment in the Industry

Marketing Plan – Identify the Building Blocks

Participants then communally identified the following three “Areas for Action”:

During the first Forum, members overwhelmingly agreed that a national or domestic generic marketing plan was required for the horse industry. During the second forum a consensus was reached on the overarching product to market, and that product was quite simply, ‘the horse’.

Markets 1. How do we develop markets for our horses? 2. What is the value chain, and what do we need to do to build it? Registered Horses and the Registries 1. Traceability - how will your group be involved, and how do we get ready? 2. How do Registries maintain their viability in the current business environment? The Business of Horses 1. Issues impacting investment 2. Costs-of-production 3. Infrastructure (people, skills, facilities) Three working groups then set about to identify strategic priorities to address the issues within the three Areas for Action: Markets, Registered Horses and the Registries, and The Business of Horses.

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An Equine Industry Marketing Working Group was formed to guide the creation and execution of a national marketing campaign with the help of expert external assistance. In terms of funding, members believe corporate sponsors may be willing to support and join the campaign, and that it might also be practical to look at public funding. It was estimated a budget of $250,000 would be required to conduct an effective campaign. Going forward following Forum II, the EC Industry Council committed it would: » Seek campaign commitment from its affiliates as it gathers an inventory of industry marketing tactics already in play » Include the campaign as part of the application for export market funding


» Promote the campaign and its goals to the EC Board and Councils » Share implementable strategies with partners Summary reports with comprehensive details on the strategic priorities identified at both these forums, as well as the survey report, Feedback on Current

Marketing the Canadian Equine Industry Marketing creates awareness, generates leads, increases sales, improves customer service and builds your brand. Canada’s equine industry is changing and generic marketing coordinated to target the domestic market as well as export markets, is fundamental to the industry’s future. Participants in the Industry Forum held in November 2011 unanimously agreed to the following: » Build the brand through generic horse promotion » Create a Marketing Committee within Equine Canada to lead the National Generic Marketing Plan In 2012-2013, the Industry Council will focus on collaborating with affiliates to deliver a National Generic Marketing Plan for the domestic market in conjunction with the Equine Canada Export Market Develop Program (EC Export). Our 2010 Canadian Horse Industry Profile Study calculates the economic contribution from the horse industry exceeds $19.6 billion annually, plus more than $300 million annually in GST/HST, and federal and provincial taxes and levies on horse racing wagering. However this contribution is at risk of serious decline due to several factors uncovered in the study. Annual foal production decreased by 50 per cent in the 2003 through 2010 period. Horse owners in all provinces reported lower prices for horses boughtand-sold in 2010 compared to 2008/09 – about a 49 per cent decrease. Entry level participation is down by approximately 50 per cent. A key priority for long-term industry sustainability and growth will be attracting new participation and revitalizing the customer base.

Challenges and Trends, can be found on the Industry Division section of the EC website. Also see our sidebar: Marketing the Canadian Equine Industry. “We feel the forum was a great success,” reported Dr. Edward Kendall. “We have created an avenue for all of us to work together for a stronger future. That’s a great thing…we have much work to do.”

With worldwide exports of live horses valued at US $2.56 billion in 2009, Canada remained in the favourable position of 8th out of 86 countries in the value of its live horse exports. However, the result of the downturn in the economy, along with other factors, was a staggering 25 per cent drop in the value of Canada’s live horse exports from $52 million in 2008 to $38.69 million (in US dollars) one year later. Source: UNdata, 2008 and 2009. Considering that more than 90 per cent of Canada’s equine industry exports are to the United States, the growth potential of the Canadian equine industry is contingent on its ability to respond to opportunities in emerging equine markets, such as China which is at the starting point of developing its contemporary equine sport industry. Building new markets is a key strategy to growing Canada’s equine industry into the future. The opportunity lies in emerging domestic and export markets where Canadians can promote their quality horses, genetics and expertise. Canada’s strengths are considerable, including: » The world-class infrastructure in place in Canada enables breeders, trainers and horse sport participants to produce and develop horses to international standards that are required by worldwide customers » Medal winners at the last Olympics, World Equestrian Games and World Trotting Championships » Since 1900, Canada’s horse breeds have been protected and regulated by the Government of Canada through the Animal Pedigree Act » Canada’s landmass and climate allow horses to be raised in a natural, healthy environment that contributes to their overall hardiness, soundness and mental development.

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Glenn and Donna VanCamp

San Pail, inaugural Equine Canada Canadian-Bred Horse of the Year. Photo credit Š Brian Acton.

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2012 EC Convention and the Industry Division Delegate Assembly The 2012 EC Annual Convention took place in St. John’s, Newfoundland, and included the annual Industry Division Delegate Assembly. Along with the Delegate Assembly meeting, members were invited to participate in Industry Forum II and a special Export Seminar. The face-to-face meeting of representatives from breed associations, educational institutions,

industry organizations, the veterinary sector, and, often, government departments, has been key to understanding the issues facing Canada’s equine sector, and this year’s meeting was no exception. It is also a good opportunity to showcase the national federation to the numerous stakeholders who may only connect with Equine Canada through the Industry Division.

Canadian-bred Horses and Canadian Breeders Honoured by Equine Canada

Here were the topics addressed at the 2012 gathering:

In 2011, Equine Canada announced the addition of two new national awards — Canadian-bred Horse of the Year and Breeder of the Year.

» Equine Traceability

The Canadian-bred Horse of the Year award will be presented to the breeder or owner of a horse who has raised the profile of Canadian-bred horses with exceptional competition results. To be eligible, the horse must be foaled in Canada and registered with any of EC’s affiliate breed associations. The award is also eligible to an outstanding sire whose offspring have accumulated national and international victories. The Breeder of the Year award will recognize a Canadian breeder for their contribution to the quality of Canadianbred horses. Nominees must be members of breed associations affiliated with Equine Canada. The inaugural awards were presented at the Equine Canada Annual Awards Gala in February 2012, in St. John’s, Newfoundland.

2011 Equine Canada Canadian Breeder of the Year KingRidge Stables

2011 Equine Canada Canadian-Breed Horse of the Year San Pail, Standardbred Owners: Glenn and Donna VanCamp and Rod Hughes

» Industry Updates » Horse Processing and the EC Equine Lifecycle Management Policy Working Group » Focus on Funding - Refining our 2012-2013 Budget Submission » New Equine Canada Awards: “Canadian-bred Horse of the Year” and “Breeder of the Year” » Strengthening Our Partnerships: Identifying the Expectations of Breed Associations and Industry » EC Export Market Development Program » Report on the 2011 Equine Industry Forum and Survey » Development of a Generic Marketing Plan for Industry – Domestic and Export Markets » Advocacy to Correct Taxation and Market Issues Hurting the Industry » Development of Best Business Practices Equine Canada traditionally holds its national convention each February. The 2013 convention will be held in Ottawa, Ontario and complete details on location, meeting times and costs, will be announced in the fall of 2012.

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Developing Our Export Markets Considering that more than 90 per cent of Canada’s equine industry exports are to the United States, a market that is predicted to continue to have economic hardship for years to come, the growth potential of the Canadian equine industry is contingent on its ability to respond to opportunities in emerging markets, such as China. Building new export markets is a key strategy to growing Canada’s equine industry into the future. The Equine Canada Export Market Development program (EC Export), administered under the Industry Division, is the driver to brand the Canadian equine industry in international markets. It is guided by a longterm international strategy that involves activities to “brand” Canada as a quality producer of expertise and events as well as horses suitable for racing, FEI and nonFEI sport, breed-specific competition and breeding. From April 2002 to March 2012, activities under EC Export were funded 50 per cent from the people and affiliated organizations participating in the activities, and 50 per cent from Agriculture and Agri-Food Canada (AAFC), most recently through its AgriMarketing Program (AMP). The objective of AMP is to enhance the Canadian agriculture, agri-food, fish and seafood sectors’ marketing capacity. The program is an important vehicle for bringing greater cohesion to individual associations’ marketing efforts to brand Canadian food and agriculture as a whole in international markets. To assist industry in their marketing efforts, AAFC has created the Canada Brand Strategy to raise the international profile of Canadian agriculture products and help motivate buyers to source from Canada. Now it’s available for domestic use. Once approved as a Canada Brand Member, companies and industry organizations can adopt the brand strategy and use its free tools in their domestic and international marketing plans. The Canada Brand Strategy is not a funding program.

By developing a brand identity for Canada’s agriculture sector, we can capitalize on the good things Canada is known for – our clean wide-open spaces and our friendly, trustworthy people – and link them more closely to the products we have to offer buyers. The strategy is designed to communicate a specific set of key attributes that we want the Canadian sector to be known for – excellence and quality, commitment, nature, trustworthiness, and customer focus. These ideas are captured in the Canada Brand tagline, “Quality is in our nature,” and the stylized maple leaf, with or without the ribbon. Canadian stakeholders across the entire value chain are asked to work together to promote Canada’s equine industry by participating in telling our story to Canadians and to the world through cohesive marketing campaigns. Here are the overall goals, objectives and priorities: Overall Goal Increase live equine and equine genetics export revenue Long-term Strategic Objectives » Canadians understand and can respond to the needs, preferences and buying habits of customers » Canadians promote internationally using the Canada Brand for the equine industry » Canada is recognized internationally as a mature, developed equine nation where quality horses, ponies, donkeys and mules, equine genetics and expertise can be sought by international buyers Immediate Priorities » Develop mechanisms to find and engage potential international customers

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» Gain a better understanding of customers’ needs, preferences and buying habits » Communicate about export directly with producers, businesses, breed registries and sport committees » Differentiate Canada’s equine industry by building the Canada Brand – Quality is in our nature EC Export focuses on a targeted plan of marketing from a national brand perspective in order to bring awareness to, and leverage Canada’s strengths. It targets international markets that have either an historic relationship to Canada, are within proximity to Canada, or are a new market with identified opportunities. In the 2011-2012 fiscal year, Equine Canada received approval for $142,498 in AMP funding. The following activities were approved for funding assistance: » Capacity-building • Expand export information on Equine Canada website • Conduct an export preparedness training seminar • Develop export stakeholder databases (buyers and sellers) » Industry-to-Industry Trade Advocacy • Canadian representation at the World Breeding Federation for Sport Horse General Assembly, the American Quarter Horse Association Convention, the World Trotting Conference and the International Breeders Meetings » Missions • Inbound from China and outbound to Australia, China and Mexico » Trade Shows • Royal Agricultural Winter Fair, 5th International China Horse Fair and the World Percheron Congress » Branding and Promotion • Create a suite of editorials which tells Canadian

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equine industry “stories”; develop social media campaigns; create a website that speaks to potential customers; produce promotional materials incorporating the Canada Brand, and; advertise outside of Canada On January 6, 2012, Equine Canada submitted its 2012-2013 AMP application to AAFC for $142,921 in funding for the following export market development activities: » Research • Research target market profiles and Canadian SME/stakeholder segmentation in order to inform export preparedness activities, missions and branding strategies effectively » Capacity building • Produce Export Preparedness Toolkit with downloadable handbook sections • Conduct an export preparedness training seminar » Industry-to-Industry Trade Advocacy • Canadian representation at the 2012 General Assembly of the Fédération Équestre International (FEI), International Trotting Association Inter-conference Meeting, World Breeding Federation for Sport Horse, International Weekend of the French Trotter, American Saddlebred Horse Association Conference, the American Quarter Horse Association Convention, and the International Breeders Meetings » Missions • Inbound missions from, and outbound missions to, China » Trade Shows • Royal Agricultural Winter Fair and the 6th International China Horse Fair » Branding and Promotion • Produce and distribute outside of Canada promotional materials incorporating the Canada Brand


(Above) Equine Canada’s booth at the 5th Annual China International Equestrian and Horse Fair, Beijing October 2011. (Top Right) In November 2011, Equine Canada and its affiliated breed associations hosted an incoming trade mission from China. Harness Racing Day included an escorted tour by Standardbred Canada’s CEO John Gallinger of Woodbine Racetrack where the delegation and EC Export’s Susan Stewart were greeted by 2011 World Driving Champion Jody Jamieson. Photo credit © Kathy Wade Vlaar. (Bottom Right) In June 2011, four Canadian Endurance Team members took part in a trade mission to western China during the 2011 “Xinfadi Cup”, the Second National Equestrianism Endurance Racing and Speed Competition in the Pasture of Zhaosu County. Along with a flat racing tournament for Chinese-owned thoroughbreds and native horses, the festival was comprised of three days of endurance riding over 260 km and an auction for locally produced horses. Photo credit © Xu Junjie.

China - Seizing Opportunities through Focused Marketing Geographically cut off from the nations with developed horse industries, China is developing its own all encompassing, self-sustaining contemporary horse industry. With its capital, population and desire, it is evident that we will never see this kind of development again. Only since the early 1990s has China started to develop a contemporary equestrian sport system. The most popular sports are racing, with domestic breeds and Thoroughbreds, barrel racing and show jumping.

Eventing, dressage and recreational riding in general are gaining popularity while endurance and long distance riding have historical prominence in some regions. Given that its contemporary equine sport structure is under-developed, China is seeking expertise from other countries. There is potential for Canada to export its expertise (e.g. training, coaching, infrastructure development, etc.) as well as its horses and genetics for equestrian sport, recreation and breeding.

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Entering this market requires comprehensive strategies that create an environment for a real longterm relationship between Canada and China. We see our approach to meeting these needs broken into three over-arching components: Component 1 Determine what China’s current needs and desires are: » Customers don’t want to buy a product. Instead they want a solution to their “problem” » What can Canada offer at each stage of the consumption chain?: “awareness of a need; openness to solutions; search for solutions; selection of the product and accessories; purchase; maintenance, and; disposal” Current needs could include: » Educational opportunities for riders/participants to improve their skills » Training and certification of coaches, trainers, jockeys and grooms

Coaching programs and Long Term Athlete Development model; college and university courses (e.g. diploma, degree, extension and online); horse care and health management, Codes of Practice for improved horse welfare and ethical sport » Horses and genetics – offer horses that meet their current requirements for sport; simplify the export process for live horses; arrange for a bank of Canadian equine genetics to be available in China; showcase Canadian experiences (e.g. Animal Pedigree Act, foreign bloodlines and the domestic herd) » Infrastructure – all facets of professional assistance from facility design to policies and rules Component 3 Commit to a long-term relationship by developing and implementing policies, procedures and programs that help maintain what has already been sold and provide current and future Canadian stakeholders with the knowledge and support required to do business in the future

» Education in horse care and health management and breeding » Academic programs » Horses and genetics to enable China to participate on par in contemporary equine sport » Equine facility, competition and racing infrastructure, rules and policies Component 2 Showcase Canada’s strengths as possible solutions to their needs; “do good business” by offering and selling appropriate solutions at the appropriate price Current solutions could include: » Education – delivered in China and Canada; clinics to develop participants’ skills and “train the horse trainer” programs; Equine Canada officials and coaching certification, offer Equine Canada

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The economic contribution from the horse industry exceeds $19.6 billion annually, plus more than $300 million annually in GST/HST and federal and provincial taxes and levies on horse racing wagering. The Canadian horse industry supports more than 154,000 jobs in Canada – one full-time job for every 6.25 horses. However, annual foal production decreased by 50 per cent in the 2003 through 2010 period. Horse owners in all provinces reported lower prices for horses bought-and-sold in 2010 compared to 2008/09, generally a 49 per cent decrease. Entry level participation is down by approximately 50 per cent. A key priority for long-term industry sustainability and growth will be attracting new participation and revitalizing the customer base. Source: 2010 Canadian Horse Industry Profile Study


Representation on National Agricultural Organizations National Farm Animal Care Council (NFACC) Equine Canada is a founding member of the National Farm Animal Care Council (NFACC), established in 2005. Susan Stewart was Equine Canada’s representative to NFACC and served three consecutive elected terms on the NFACC Executive Board. In December 2011, Susan concluded her third term and Maggie Harvey, EC Manager of Industry, Health, Welfare and Recreation, will now be the Equine Canada representative to NFACC. NFACC’s mandate is to provide a national coordinated approach to promoting responsible farm animal care. Through an inclusive approach, NFACC works to share information and build collaborative approaches and processes that facilitate Canada’s agriculture industries. NFACC’s objectives include updating and reestablishing the Code of Practice development process in Canada as well as serving as a forum for discussing perspectives across the value chain on animal care assessment programs and the development of a framework and principles for verification programs. For more information, visit www.nfacc.ca. In 2011, NFACC membership increased 20 per cent to $3,000. The Industry Division contributed $2,500 and the Health & Welfare Committee contributed $500 on behalf of the Sport, Recreation, and Provinces Divisions. The membership has been renewed for 2012. NFACC projects of key relevance to Equine Canada include: » Equine Code of Practice Renewal (as reported above) » Animal Care Assessment Model Since 2005, NFACC has facilitated discussions on the concept of having a nationally coordinated approach to animal care assessment. In 2008, the decision to

proceed with the development of an ACAM was made and resulted in the creation of the draft ACAM in 2009. The work continued in 2011 under the guidance of a multi-stakeholder Committee. The ACAM Model is intended to provide a framework for the development of animal care assessment programs. Groups can follow the ACAM process to develop their animal care programs and demonstrate adherence to their Code of Practice. In August 2011, Dr. Mary Bell, Chair, Equine Canada Health and Welfare Committee, represented the organization at a two-day workshop on developing an Animal Care Assessment Model (ACAM). The purpose of the workshop was to provide an update on the ACAM project and gain feedback on the proposed model. Workshop participants agreed that there is a need to have a nationally coordinated approach to developing animal care assessments programs. There was also strong consensus that animal care assessment programs should be based on the Codes of Practice and this generated discussion on the importance of having Codes that contain measurable components, progressive but achievable targets and that acknowledge regional differences within an industry. A Code of Practice that reflects the needs of stakeholders facilitates the development of assessment programs that also reflect the needs of stakeholders. The next steps include the test piloting of the draft ACAM by the Dairy Farmers of Canada (DFC). This exercise will provide a practical opportunity to work through issues raised in the workshop, address outstanding questions and inform further revisions. A second workshop is planned for the fall of 2013 and the ACAM will be completed by December 2013. Complete details can be found at http://www.nfacc.ca/ animal-care-assessment-model.

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Canadian Animal Health Coalition As a responsibility of the Industry Division, Equine Canada has been a member of the Canadian Animal Health Coalition (CAHC) since it formed in 2002. CAHC is a partnership of organizations that recognize their shared responsibility for an effective Canadian animal health system. It does so through tackling and resolving multi-stakeholder animal health issues while balancing the interests of livestock, wildlife, human health and trade. CAHC is a project-based organization that addresses issues of concern through projects funded by industry and government. The cost of CAHC membership fees, which is borne by the Industry Division, has been: » $2,718.75 for October 2010–September 2011

» 24/7 - 365 day operations including client support through the call centre and site activity » Confirm funding commitment by industry organizations » Enhance producer participation » Validate data collection and integrity and assess ease of access of the system » Define West Hawk Lake Zoning’s role in the National Agriculture and Food Traceability System » Investigate an expanded WHL scope to include other agri-food commodities

» $3,878.75 for October 2011–September 2012

Objectives of Zoning

For more information, visit www.animalhealth.ca.

» isolate disease in an outbreak

CAHC has been leading the West Hawk Lake Zoning initiative (WHL), a partnership of industry and provincial and federal agencies, coming together to develop a proactive animal disease management tool to track the movement of livestock between eastern and western Canada. EC Industry Councilor Gary Gushuliak, from Manitoba, is our representative on the CAHC’s West Hawk Lake Zoning Committee.

» track animal movement (and disease spread) in and out of zone

The West Hawk Lake reporting station, located on the median of the Trans-Canada Highway near the Manitoba-Ontario boundary, is considered a control point on the only major highway connecting eastern and western Canada, near the longitudinal centre of Canada. The control site offers a unique, single road site checkpoint opportunity to monitor and control Canadian livestock movements. With the cooperation of producers and the transportation industry, information about the conveyance of animals including departure and destination premises is gathered and stored in a database. This information will only be accessed in an emergency. Known as “zoning”, this method of animal disease management is internationally recognized and sanctioned. It is estimated that a zone site located in central Canada could save $45 billion during an outbreak of foot and mouth disease, and could limit the duration of the outbreak by as much as two-thirds.

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Objectives of the West Hawk Lake Zoning Project 2009-2013

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» re-establish trade with other nations from disease free zones » establish a paper trail to monitor data at zone borders » return the industry to normal or near normal status faster » prevent and mitigate the spread of foreign animal diseases Requirements for travel through the West Hawk Lake Zone point » Legal land description where trip and animals originated from » Mailing address of owner/originator of trip For information prior to crossing through the West Hawk Lake Zone point, phone 1-877- 966-3945. For more information on the West Hawk Lake Zoning initiative, visit www.animalhealth.ca. As the national body representing the “horse” in Canada, Equine Canada contributes $750 per annum to maintain membership and a voice on the WHL Committee.


(Above) The Bourbonnais family of Edwards, Ontario, is just one of the many families across Canada that enjoy showing in heavy-horse hitch classes each season.

National Farmed Animal Health and Welfare Council Through the Industry Division, Equine Canada has been in support of and involved with the National Farm Animal Health & Welfare Strategy (NFAHWS) since its inception in 2007. The NFAHW Council was formed as an advisory council by the FederalProvincial-Territorial Regulatory Assistant Deputy Ministers of Agriculture Committee (FPT Reg ADMs) but it reports to all stakeholders. It is funded jointly by federal and provincial government agencies/ departments and industry organizations. Its role is to provide ongoing advice to governments and industry on the implementation of the NFAHWS which provides a framework for enhancing Canada’s farmed animal health and welfare system. The inaugural meeting of the NFAHW Council was held on October 28-29, 2010, in Guelph, Ontario.

Health and Welfare Forum in Ottawa, in December 2011. Speakers from both domestic and international organizations delivered thought-provoking and timely messages for shaping the future of Canada’s animal health and welfare sector, with emphasis on the three major actions items: governance, surveillance and animal welfare.

Jack Dewitt, Equine Canada Recreation Council Chair and Equine Code Development Committee Chair, attended the two-day National Farmed Animal

For more information on the National Farm Animal Health & Welfare Strategy and Council, visit www.ahwcouncil.ca.

While Canada has enjoyed an enviable reputation for its animal health programs and status, recent events such as the increasing challenge of managing zoonotic diseases and globalization in trade require that we become even more proactive in managing these issues. Federal-provincial-industry roles in animal health must be clarified and anticipation of emerging animal health threats needs to be emphasized.

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About Industry The Industry Division of Equine Canada provides a structure for breed organizations and industry partners operating in Canada to unite as a coalition under the national federation of Equine Canada. The Industry Division works to promote and assist a vibrant equine industry through programs and policies, and provides a forum for the exchange of information between Equine Canada, Canadian stakeholders, the Government of Canada and foreign entities. Each year the division’s membership, referred to as the Delegate Assembly, elects a nine-member Industry Council responsible for a broad range of responsibilities including: » developing a national identification and traceability system for horses » promoting and marketing the development and sale of Canadian-bred horses » representing the equine industry to the Federal Government, primarily by working with Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) » facilitating herd health and supporting equine improvement research

Association Members In 2011-2012, eleven organizations were active members with Equine Canada’s Industry Division. These organizations collectively represented the interests of approximately 32,821 members across Canada to the organization. » American Saddlebred Horse Association » Clydesdale Horse Association of Canada » Canadian Warmblood Horse Breeders Association » Canadian Donkey & Mule Association » Canadian Quarter Horse Association » Canadian Thoroughbred Horse Society » Canadian Sport Horse Association » Standardbred Canada » Canadian Trakehner Horse Society » Canadian Hanoverian Society » Olds College

» advocating for skills development and certification for industry employees » representing the equine industry at various farmedanimal industry organizations The Industry Council meets monthly, and the full delegate assembly meets during the annual Equine Canada national convention, and at other times during the year to address specific industry policy and program issues. This approach has proven very successful over the years, resulting in numerous health, welfare, export and marketing initiatives.

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Industry Council 2012 Chair:

Edward Kendall, Canadian Warmblood Horse Breeders Association

EC Board Representatives / Councillors:

Al Patterson, Ontario Equestrian Federation

2012 Councilors:

Amber Heatlie, Clydesdale Association of Canada

Bernard McCormack, Canadian Thoroughbred Horse Society

Edward Kendall, Canadian Warmblood Horse Breeders Association

Gary Gushuliak, Manitoba Horse Council

Marnie Somers, Canadian Quarter Horse Association

Michael Boyd, Canadian Hanoverian Society

Ex-officio:

Bonnie Simpson, Equine Canada Recreation Council

Dr. Mary Bell, Chair Equine Canada Health & Welfare Committee

Dr. John McNie, Chair Equine Canada Lifecycle Management Working Group

Dean Leifso, Standardbred Canada

Industry Council 2011

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Chair:

Edward Kendall, Canadian Warmblood Horse Breeders Association

EC Board Representatives / Councillors:

Marnie Somers, Canadian Quarter Horse Association

2011 Councilors:

Bernard McCormack, Canadian Thoroughbred Horse Society

Dean Leifso, Standardbred Canada

Edward Kendall, Canadian Warmblood Horse Breeders Association

Gary Gushuliak, Manitoba Horse Council

Michael Boyd, Canadian Hanoverian Society

Orville Smith, BC Horse Council

Richard MacKenzie, American Saddlebred Horse Association of Canada

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Al Patterson, Ontario Equestrian Federation



About Equine Canada Equine Canada is recognized by the Government of Canada, including Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency (CFIA), Industry Canada, and Sport Canada, as the national body overseeing interests related to horses, ponies, donkeys and mules, and owners, riders and drivers across Canada. Our Industry Council and Health and Welfare Committee work with the CFIA, the Canadian Veterinary Medical Association (CVMA), universities and colleges, provincial and international equestrian federations, breed associations, and international regulatory agencies to provide expertise, feedback and guidance on issues impacting the equine industry and equine health and welfare. We regularly communicate on industry, herd health and welfare issues through our nationally distributed Health Alerts, national bi-monthly magazine, electronic newsletters, web site and Facebook.


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