2022 Holstein Ontario Annual Report

2 0 2 2 A N N U A L R E P O R T

2 0 2 2

Y E A R I N R E V I E W

A T R A N S I T I O N A L Y E A R

2 0 2 2 w a s a t r a n s i t i o n a l y e a r f o r H o l s t e i n O n t a r i o .

A l o n g t i m e e m p l o y e e r e t i r e d , a n e w s e c r e t a r y s t a r t e d a n d w e h i r e d a n e w G e n e r a l M a n a g e r

D e s p i t e a l l o f t h e s e c h a n g e s , w e a r e p l e a s e d w i t h o u r a c c o m p l i s h m e n t s

T W E N T Y - F O U R

C O U N T Y S H O W S

F O U R

R E G I O N A L S H O W S &

F O U R J R S H O W S

F O R T Y

Y E A R S C E L E B R A T E D

N o w i n i t s 1 3 t h y e a r , T h e L i n k m a g a z i n e c o n t i n u e s t o b e o u r m a i n m e a n s o f c o n n e c t i n g w i t h o u r m e m b e r s h i p . W e a r e p l e a s e d t o s h o w c a s e O n t a r i o ' s f i n e s t a n i m a l s a n d m e m b e r a c h i e v e m e n t s w i t h i n o u r p u b l i c a t i o n . A b i g t h a n k y o u t o o u r l o n g t i m e a d v e r t i s e r s , s p o n s o r s a n d r e a d e r s f o r a l l o w i n g u s t o c o n t i n u e o u r w o r k o n T h e L i n k !

E V E N T S

H O S T E D & S U P P O R T E D

N a t i o n a l J u d g e s C o n f e r e n c e , P r o v i n c i a l J u d g i n g

S c h o o l , D a i r y S e n $ e , T D C a n a d i a n 4 - H D a i r y

C l a s s i c , B r e d & O w n e d A w a r d s a t t h e R o y a l

W i n t e r F a i r , A l l - O n t a ri o A w a r d s , S p i r i t o f 4 - H , B a r n m e e t i n g s , T w i l i g h t s a n d C l u b A G M ' s

3,321 MEMBERS 36 CLUBS

100,212 REGISTRATIONS

73,122 CLASSIFICATIONS

9,634 TRANSFERS

AGENDA

WELCOME & CALL TO ORDER

RECOGNITION OF SPECIAL GUESTS

APPROVAL OF AGENDA

ADOPTION OF MINUTES

(Holstein Ontario AGM Feb 23rd, 2022)

PRESIDENT’S REPORT

GENERAL MANAGER’S REPORT

FINANCIAL REPORT

APPOINTMENT OF AUDITORS

RESOLUTIONS

HOLSTEIN CANADA REPORT

OPEN FORUM

ADJOURNMENT

James Cranston

Monica Kagi

James Cranston

James Cranston

James Cranston

Pam Charlton

Cole Verburg

Cole Verburg

Kyle MacLeod

Nancy Beerwort

James Cranston

President’s Message James Cranston

To quote William Churchill when he was discussing his favourite animals, “Dogs look up to you, cats look down on you. Give me a cow. She will just looks you right in the eye and will treat you as her equal, right up until she leaps over a gate or kicks the milk bucket over again.”

Now, while that quote might not be entirely accurate, it does underscore the wonderful highs (think a healthy newborn calf or steadily rising liters in the bulk tank) and the frustrating lows (the less said about them the better) that dairy farming provides to us.

In my time as President I have been proud to representin some small way - the highly varied and hard working membership of Holstein Ontario. Differing in thought on politics, the structure of the ideal cow, housing systems or the merits of each colour of robot, but tied together by a passion for the Holstein cow and the resolute ability to embrace the highs and lows of working with them. This passion combined with the dedicated work of branch staff will certainly see the

branch thrive through all the opportunities and challenges that lie ahead in our industry.

I would like to thank and congratulate Pam on her first year as GM, a role with a steep learning curve, no doubt, but she has managed to take it all in stride. I would also like to thank Andrea, Martina and Molly for going above and beyond to keep things moving forward in this transitional year.

Last, and certainly not least, congratulations to the nine new Master Breeders in the province; it’s a big honour representing years and years of high-quality work. I am looking forward to celebrating with you and all our members at our AGM. The hosting committee has a fantastic program prepared for us and I know they are eager to welcome everyone. May you and your water lines stay warm and see you all in Ottawa!

James Cranston

Holstein Ontario Past Presidents

1. William Grieve, Dorchester - 1982

2. Jack Gillespie, Cambridge - 1983

3. Allan Orr, Bradford - 1984

4. Campbell Murray, Martintown - 1985

5. Court Carmichael, Ilderton - 1986

6. Robert H. Brown, Welland - 1987

7. Frank Barkey, Blackstock - 1988

8. Clarence Diefenbacher, Elmira - 1989

9. Gordon Dodge, Cardinal - 1990

10. James King, Brampton - 1991

11. James Ismond, Powassan - 1992

12. Harry Stanley, Norwood - 1993

13. Ken Allen, Vankleek Hill - 1994

14. Wayne Lennan, Petrolia - 1995

15. Brian Coleman, Brantford - 1996

16. John Hess, Kemptville -1997

17. Glen McNeil, Goderich - 1998

18. John Fraser, Richmond - 1999

19. Steve Walters, St. Thomas - 2000

20. Wayne Crossfield, Powassan - 2001

21. Dean Warner, Hastings - 2002

22. Ron Sleeth, Battersea - 2003

23. Doug Karn, Woodstock - 2004

24. Gerald Nyman, Bloomfield - 2005

25. Russell Bennett, Spencerville - 2006

26. Heather Parkin, Owen Sound - 2007

27. Ken Empey, Dorchester - 2008

28. Dennis Werry, Oshawa - 2009

29. Brian Slaughter, Forest - 2010

30. Brian Slaughter, Forest - 2011

31. Ron Greaves, North Augusta - 2012

32. Elvin Petherick, Campbellford - 2013

33. Gary Cain, Paris - 2014

34. Ian Fraser, Dalkeith - 2015

35. Hank Hazeleger, Embro - 2016

36. Sandy O’Hara, Schomberg - 2017

37. Dave Johnston, Listowel - 2018

38. Brad Lowry, Almonte - 2019

39. Tara Bullock, Lakeside - 2020

40. Wilf Strenzke, Breslau - 2021

41. James Cranston, Ancaster - 2022

General Manager’s Message

Pam Charlton

As I reflect on the past year as your General Manager I am amazed by several things, but mostly, of how quickly the time has gone! One year ago, only a few days into the job, and I was sitting in a chair observing the AGM wondering how in the world I was going to manage all the different pieces that make up this organization.

Your former GM, Merina Johnston, the directors and staff made it all look so easy! I knew there would be challenges and a steep learning curve to climb, especially with the void left behind with the transition of the field representatives and the retirement of long-time employee Mary Poirier. Not to mention the lifting of health measures that would allow the return of events and activities that the members missed so much. And this is where I am amazed once again.

The support of the directors, staff, various committees and members at large to help me learn and succeed was overwhelming. There was no such thing as a “dumb” question. With all of that support encouraging me and the staff, we managed an incredible year of events and activities. Were there bumps in the road along the way? Definitely! Did things always run perfectly? Definitely not! But we learned to bend with the bumps and come together as a team and I think we all discovered talents we didn’t know we had.

The directors stepped up to attend many twilight meetings and AGM’s and the branch staff put on many kilometres supporting county and regional shows and other provincial events. They took on new roles and responsibilities and rose to all the challenges put in front of them. I am so proud of all of you –you have followed our Mission Statement to the fullest extent: Providing outstanding service and exceptional opportunities to ensure longevity and excellence in the Holstein Breed.

Together, as a team, we supported 24 County shows, four Regional shows, hosted four District Junior Shows, supported the provincial judging school, hosted the National Judges Conference, supported Dairy Sen$e, welcomed 313 exhibitors from five provinces at the TD Canadian 4-H Dairy Classic, sponsored Bred and Owned awards for the National Black and White Show at the Royal Winter Fair, held the All Ontario Awards, sponsored the Spirit of 4-H awards across the province, supported the Summer Social event and 40th Branch Anniversary celebrations and rewarded the 2020 Dairy Youth Award winners with a trip out west to the Westerner Dairy Showcase. We attended barn meetings, twilight meetings and AGMS’s, we launched a new logo and to showcase our members, producers, supporters and events, we published four issues of the Link. Not bad for a small but mighty team!

Thank you to Molly, Martina and Andrea for all you did this past year to achieve so much. And to the directors who stepped up to represent the branch at many of these activities – Thank you for your commitment to the branch and its members. I also want to thank all of our sponsors and supporters for your contributions to the events and activities that we provide. Your faith in what we do goes a long way in ensuring they are successful.

As I reflect on the year passed and gain more confidence in my role as your General Manager, I look forward to new challenges and opportunities that 2023 may hold and exploring new ways to reach our membership. We are always willing to listen to new ideas and ways to better serve our members so please reach out to our staff or your directors to share your thoughts and ideas.

Just because we have always done things one way, doesn’t mean there aren’t other ways to do it or that change can’t happen. If we have learned anything from the COVID pandemic, it is just that. Pivot, bend, change, discover…those have been the themes of my first year. I look forward to seeing what great things we can accomplish in 2023.

Sincerely,

Pam Charlton

- Anne Frank

“Everyone has inside of him a piece of good news. The good news is that you don’t know how great you can be! How much you can love! What you can accomplish! And what your potential is!”

Opening Remarks:

Holstein Ontario Branch

Minutes of the 40th Annual General Meeting

Wednesday, February 23rd, 2022 Virtual Meeting

President Wilfred Strenzke opened the 40th Holstein Ontario Annual General Meeting thanking all for joining. While it would have been ideal to be in-person, he extended appreciation to those who took time out of their busy schedule to participate virtually.

2021 Master Breeder and Production winners were recognized at this time. Heart of the Herd winners will be announced soon for the individual counties and the province. Stay tuned on social media, as well as the Spring issue of the Link magazine for more details. Wilfred noted these award winners, along with several others, will be formally celebrated at the Summer Social in June 2022. All-Ontario Awards for 2021 were recognized and sponsors thanked. Congratulations were extended to all award winners for their hard work and achievement.

Invitation:

Wilfred extended a formal invitation to an exciting event this summer on June 22nd-23rd, hosted by Wellington County and Holstein Ontario. The event will include recognition of the 2020-21 Master Breeders, Dairy Woman Service Award, All-Ontario awards, staff milestones, farm tours, and celebrating the 40th anniversary of Holstein Ontario.

Thanks:

Call to Order:

Guests:

Agenda: Minutes:

Awards: President’s Report: General Manager’s Report:

Tara thanked Merina Johnston for her tenure as Holstein Ontario General Manager and welcomed Pam Charlton as her successor.

At this time, President Strenzke officially called the meeting to order and took a brief moment to recognize those that have passed throughout the year. Ground rules for the meeting were explained.

A number of guests in attendance were recognized at this time.

The agenda and Annual Report book links were shared.

The minutes of June 24, 2021 39th Holstein Ontario Annual General Meeting were highlighted and approved as printed.

Motion by: Tara Bullock Seconded by: Tom Hawman Carried.

Wilfred Strenzke read his written report noting the many passionate people he has met during his time on the Board and how gratifying to see so many take pride in what they do. The Field staff have navigated through the last two years with determination and made the best of an undesirable situation. Virtual shows, online judging, webinars and zoom meetings to name a few is how they adapted to the times. Their enthusiasm will remain with them in their roles with Holstein Canada. Wilf went on to thank all staff for their contributions to the Branch, particularly Mary Poirier who continues to be the heart of Holstein Ontario for over forty years. He also thanked Board members for all their support during yet another challenging year due to the pandemic. At this time, Wilf introduced newly hired General Manager Pam Charlton, as well as the current Holstein Ontario Board of Directors.

Merina Johnston stated that despite the pandemic, she was incredibly proud of what the Branch achieved throughout the year. Over and above the activities, a transformation took place. The Field Service Project, supported through a by-law change at last year’s AGM, resulted in the Field Reps transitioning to Holstein Canada effective January 1, 2022. A sincere thanks to Amanda Comfort, Jenna Hedden and Jordan Eastman for their unwavering work ethic, positivity, dedication and growth. With this change, there will be a 50% reduction in the activity fee resulting in the new 6% rate, the second lowest across all the provincial branches. Merina also extended gratitude to two long-standing Holstein Ontario employees Mary Poirier and Andrea Emond, and welcomed Pam Charlton and Molly McMillan to the fold.

Holstein Ontario’s transformation is expected to solidify into 2022 and beyond, building off the strong foundation of the Branch established over 40 years of hard work and dedication to the Holstein breed. Members carry great power in supporting the organization and perhaps the most clearly defined opportunity for members to guide the direction of the Branch is through the Board of Directors. Merina expressed gratitude to the current Board and a number of past Board members that she had the pleasure to serve under.

The 2021 audited financial statements for Holstein Ontario were reviewed by Vice-President James Cranston, which were approved by those members in attendance.

Motion by: Cole Verburg

Seconded by: Kyle MacLeod Carried.

The membership approved a motion to accept KPMG as official auditors for 2022.

Motion by: Brad Lowry

Resolutions:

Financial Report: National Report:

Seconded by: Cole Verburg Carried.

The 2022 Holstein Ontario budget was presented to the membership.

The following two resolutions were presented and approved by the membership:

Canadian Milk Symbol

Whereas the promotion of Canadian dairy and the Canadian milk symbol is integral to the success and financial stability of Canadian dairy farms, and; whereas the sale of milk is important to the membership, services, and programs of Holstein Canada and Holstein Ontario, and; whereas Holstein Canada and Holstein Ontario have strong visible presences through social media, printed media, events, and programs;

Therefore be it resolved that Holstein Canada and Holstein Ontario identify opportunities to promote Canadian dairy and the Canadian milk symbol wherever possible.

Motion by: Brad Lowry

Stamped Registration Papers

Seconded by: Kyle MacLeod Carried.

Whereas historically Holstein Canada stamped classification results on registration papers, and; whereas breeders relied on these updated registration papers for recordkeeping and marketing purposes, and; whereas registration papers are currently updated to reflect genomic details as they become available, allowing the owner to reprint the updated version of the registration paper if they chose to;

Therefore be it resolved that Holstein Canada investigate means to provide updated classifi-cation results on registration papers, including the option of updating the electronic registration papers following a classification scoring, to enable members to print updated registration papers if preferred.

Motion by: Joe Krol

Seconded by: Cole Verburg Carried.

Elyse Gendron, President of Holstein Canada (HC), brought greetings to the meeting on behalf of the National organization. She introduced herself along with the entire National Board and continued with a slide presentation. HC is in the process of reviewing their Strategic Plan, which will be delivered at the next AGM in April 2022. The industry is moving so fast and it is important to make sure plan reflects what the members need. A survey sent out last fall will also help with this exercise and Elyse thanked all those who took the time to answer. As far as resolutions go, every member has a voice and a vote. Joint Breeds and Lactanet have established a working committee to develop an action plan to revise set of rules for publication and use of various production data to include more data collected by different milking systems. Projects in the works at HC include a mobile app for registrations, easier submission options coming for genomic testing, new reports available in member web accounts, and Cow of the Year criteria changes. Classification schedule back to normal now, however it was the one service most affected by the pandemic. Elyse updated group on the Classifier Pilot Project to start in BC and invited everyone to the National Convention in Saskatoon April 20-23. Vincent Landry, Holstein Canada CEO, congratulated Merina and the Ontario Board at this time.

Thanks:

Wilfred Strenzke was thanked for his term as Branch President with a gift of appreciation. Tara Bullock also thanked and presented with a Past President pin. Appreciation was shown to current Holstein Ontario General Manager Merina Johnston for her tenure since May 2017. Pam Charlton was welcomed as the incoming GM for the Branch.

The 2022-2023 Holstein Ontario Board of Directors were introduced:

Western Ontario: Alan Hawthorne, Kyle MacLeod

West-Central Ontario: James Cranston, Wilfred Strenzke

East-Central Ontario: Tom Hawman, Vacant

Eastern Ontario: Monica Kagi, Cole Verburg

National Director appointed to Board: Dennis Werry

Brad Lowry and Tara Bullock were thanked for their term on the HO Board.

2023 Holstein

Summer Social:

2023 Holstein

Ontario AGM:

Adjournment:

Attest:

President Strenzke reminded everyone about this fun and entertaining celebration planned for June 22nd and 23rd at the Grand River Raceway, Elora.

President Strenzke also extended an invitation to next year’s February event in Ottawa.

The meeting was adjourned at 11:40 a.m. Motion by: Alan Hawthorne.

Pam Charlton, General Manager Holstein Ontario

Results of Resolutions Carried at 2022 Annual Meeting

Submitted in 2022:

Be it resolved that Holstein Canada investigate means to provide updated classification results on registration papers, including the option of updating the electronic registration papers following a classification scoring, to enable members to print updated registration papers if preferred.

Action Plan: Holstein Canada will look at options to make Certificates of Registration available on your Online Services for an extended period of time. Animal information on the Certificate of Registration would be current/real time when viewed/ printed from the web.

Submitted in 2022:

Be it resolved that Holstein Canada and its Branches identify opportunities to promote Canadian dairy and the Canadian milk symbol wherever possible.

Action Plan: Holstein Canada acknowledges the spirit and vision of this Resolution, and has made note for any potential future opportunities.

Submitted in 2022:

Be it resolved that HC review all By-laws and policies to update terminology to reflect gender neutrality.

Action Plan: The Holstein Canada By-laws will have a note added for the reader to indicate that the masculine tense is used throughout, in a non-bias format, for simplicity purposes only, furthermore, that the masculine tense used in the document is meant to be gender neutral.

Proposed Resolutions to be Discussed at 2023 Annual Meeting

1. Resolution submitted by Brant-Wentworth Holstein Club

Whereas, the number and percent of animals genomically tested in Canadian Holsteins is low;

Whereas, Holstein Canada members need to see more value in having their animals genomically tested;

Whereas, young animals, especially heifers, often have the highest genetic merit and the most revenue generating potential in a herd;

Whereas, Holstein Canada members doing genomic testing need Holstein Canada to provide more value for their animals, similar to what is done for members whose animals are show winners; and

Whereas, potential domestic and foreign buyers need to have a source for being aware of top genetic Canadian Holstein animals;

Therefore, be it resolved, Holstein Ontario requests that Holstein Canada allocate resources in 2023 to develop a service whereby at the time of registration and genomic testing of animals (females and males) a list be created and published monthly, on it’s website, for at least the top 1% of tested animal listing by LPI, Pro$ and other traits that Holstein Canada sees as key to the future success of Canadian Holsteins.

Note: Such a service will be of benefit to animal owners, bull breeders and owners, all divisions and levels of Holstein Canada (including Holstein Canada’s Genomic Testing Service) and the Canadian dairy cattle breeding industry.

Annual Sponsor Recognition

2022 saw a return to our regular in-person events! We wish to thank our sponsors for their continued support. Below is a list of sponsors we who helped make our Holstein Ontario events possible.

Ontario Joint Dairy Breeds

Junior Shows

Provincial Judging School

Ontario Dairy Youth Trust Fund

Junior Shows

Ontario Dairy Youth Award

Dumfries Mutual Insurance

West-Central Junior Show

Grenville Mutual Insurance

Eastern Junior Show

EastGen

All-Ontario Competition Junior Shows

Harness Cards, Catalogues Twilight Meetings

Quality Seeds

All-Ontario Competition

Western Junior Show

Steveleigh Holsteins

Western Junior Show

TD Canada Trust

Western Junior Show

Vicki Fletcher Photography

All-Ontario Competition

RBC Royal Bank

Western Junior Show

West-Central Junior Show

Ken & Marie McNabb

West-Central Junior Show

West Elgin Mutual Insurance Company

Western Junior Show

Trouw Nutrition Canada Inc.

Western Junior Show

Nuview Farms Ltd.

Western Junior Show

Ayr Farmers Mutual Insurance Company

West-Central Junior Show

Jersey Ontario Junior Shows

Carldot Farms

Western Junior Show

Dairy Farmers of Ontario

East-Central Junior Show

W.B. White Insurance Company

East-Central Junior Show

Dan Peltier – Howard Mutual Western Junior Show

Floradale Feed Mill Limited

West-Central Junior Show

Joanne Fennema

West-Central Junior Show

Grand River Agricultural Society

West-Central Junior Show

Orono Agricultural Society

East-Central Junior Show

GayLea Foods

Provincial Production Awards

Upper Grand Vet Clinic

West-Central Junior Show

Walker Dairy Inc. Western Junior Show

Shaw’s Ice Cream

Western Junior Show

KPMG LLP

Commerce Place

21 King Street West, Suite 700

Hamilton Ontario L8P 4W7

Canada

Telephone (905) 523-8200

Fax (905) 523-2222

INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the accompanying financial statements of Holstein Association of Canada – Ontario Branch (the Entity), which comprise:

• the statement of financial position as at December 31, 2022,

• 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, including a summary of significant accounting policies and other explanatory information.

(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, 2022 and its results of operations, its changes in net financial assets 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 “Auditors’ 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 responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the 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.

To the Board of Directors of Holstein Association of Canada – Ontario Branch

KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. KPMG Canada provides services to KPMG LLP.

Auditors’ 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 auditors’ 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 procedure 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 internal control.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

• 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.

• 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 auditors’ 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 auditors 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 13, 2023

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Statement of Financial Position

December 31, 2022, with comparative information for 2021

Liabilities and Net Assets

COVID-19 (note 9)

See accompanying notes to financial statements.

See accompanying notes to financial statements.

On behalf of the Board:

On behalf of the Board: Director Director

Director

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Statement of Operations

Year ended December 31, 2022, with comparative information for 2021

See accompanying notes to financial statements.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Statement of Changes in Net Assets

Year ended December 31, 2022, with comparative information for 2021

See accompanying notes to financial statements.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Statement of Cash Flows

Year ended December 31, 2022, with comparative information for 2021

See accompanying notes to financial statements.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Notes to Financial Statements

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Year ended December 31, 2022

Notes to Consolidated Financial Statements

Year ended December 31, 2022

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.

1. Significant accounting policies:

(a) Basis of accounting:

The financial statements have been prepared using Canadian accounting standards for notfor-profit organizations.

(b) 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.

(c) 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.

(d) 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. Actual results could differ from those estimates and may have impact on future periods.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

(e) Revenue recognition:

Notes to Financial Statements (continued)

Year ended December 31, 2022

1. Significant accounting policies (continued):

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. Unrestricted investment income is recognized as revenue when earned.

(f) Financial instruments:

Financial instruments are recorded at fair value at initial recognition.

In subsequent periods, equities traded in active market and derivatives are reported at fair value, with any change in fair value reported in income. All other financial instruments are reported at cost or amortized cost less impairment. Transaction costs on the acquisition, sale or issue of the financial instruments are expensed for those items measured at fair value and charged to the financial instrument for those measured at amortized cost.

Financial assets are tested for impairment when indicators of impairment exist. When a significant change in the expected timing or amount of the future cash flows of the financial asset is identified, the carrying amount of the financial asset is reduced and the amount of the write-down is recognized in net income. A previously recognized impairment loss may be reversed to the extent of the improvement, provided it is not greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously, and the amount of the reversal is recognized in net income.

(g) Capital assets:

Capital assets are stated at cost less accumulated depreciation. Amortization is provided using the straight line method with a salvage value of $5,000 over the useful lives as follows:

1. Significant accounting policies (continued):

Financial assets are tested for impairment when indicators of impairment exist. When a significant change in the expected timing or amount of the future cash flows of the financial asset is identified, the carrying amount of the financial asset is reduced and the amount of the write-down is recognized in net income. A previously recognized impairment loss may be reversed to the extent of the improvement, provided it is not greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously, and the amount of the reversal is recognized in net income.

(g) Capital assets:

Capital assets are stated at cost less accumulated depreciation. Amortization is provided using the straight line method with a salvage value of $5,000 over the useful lives as follows:

(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:

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Notes to Financial Statements (continued)

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.

Year ended December 31, 2022

2. Transactions with Holstein Association of Canada:

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 branch and the Association throughout the year.

The Organization occupies space in the Association’s building and receives accounting services provided by the Association. Total amount paid for rent and accounting services was $15,000 for the year (2021 - $15,000).

At December 31, 2022, amounts due from the Association included in accounts receivable on the balance sheet were as follows:

3. Investments:

3.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

The GICs have effective interest rates of 0.20% - 4.92% per annum and mature between May 2023 and November 2027.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Notes to Financial Statements (continued)

In the current year, the value of investments internally restricted in the general reserve fund are comprised of Cash on hand, GICs, Canadian preferred shares, Canadian and foreign mutual funds and Gay Lea shares in the amount of $481,268 (2021 - $506,268).

Year ended December 31, 2022

Notes to Financial Statements (continued)

4. Capital Assets:

Year ended December 31, 2022

4. Capital assets:

4. Capital assets:

5.

5. Bank Indebtedness:

5. Bank indebtedness:

The Organization has an available credit facility on their Visa in the amount of $20,000. The Organization had undrawn credit capacity under this facility of $20,000 (2021 - $20,000).

The organization has an available credit facility on their Visa in the amount of $20,000. The organization had undrawn credit capacity under this facility of $20,000 (2021 - $20,000).

6. Deferred revenue:

The Organization has an available credit facility on their Visa in the amount of $20,000. The Organization had undrawn credit capacity under this facility of $20,000 (2021 - $20,000).

6. Deferred revenue:

6. Deferred revenue:

Deferred revenue represents membership fees, magazine ad revenue, and sponsorships received in the current year that relates to the subsequent year.

Deferred revenue represents membership fees, magazine ad revenue, and sponsorships received in the current year that relates to the subsequent year.

7. Internally restricted net assets:

7. 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.

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.

Bank indebtedness:

7.

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Internally restricted net assets:

Notes to Financial Statements (continued)

Year ended December 31, 2022

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.

8. Financial instruments:

8. 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 of 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 its investments and accounts receivable.

Management considers its exposure to credit risk over investments to be remote as the Organization holds cash deposits with various major financial institutions. Accounts receivables are not concentrated significantly and therefore the carrying amount of accounts receivable represents the maximum credit risk exposure.

(b) 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.

(c) Interest rate risk:

HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH

Notes to Financial Statements (continued)

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.

Year ended December 31, 2022

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.

8. Financial instruments (continued):

(d) 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.

There have not been any changes in the risks described above from the prior year.

9. COVID-19:

9. COVID-19:

On March 11, 2020, the World Health Organization declared the Coronavirus (COVID-19) outbreak a pandemic. The pandemic has resulted in significant financial, market and societal impacts in Canada and around the world. The future impacts on the Organization are not expected to be significant.

On March 11, 2020, the World Health Organization declared the Coronavirus (COVID-19) outbreak a pandemic. The pandemic has resulted in significant financial, market and societal impacts in Canada and around the world. The future impacts on the Organization are not expected to be significant.

Due to reduced events in 2021, Holstein Ontario was in a position to send $21,150 of excess cash direct to the Holstein Clubs. In 2022 this amount was $nil. The Organization was eligible and received the Canadian Emergency Wage Subsidy of $nil during the year (2021 - $144,856).

Due to reduced events in 2021, Holstein Ontario was in a position to send $21,150 of excess cash direct to the Holstein Clubs. In 2022 this amount was $nil.

The Organization was eligible and received the Canadian Emergency Wage Subsidy of $nil during the year (2021 - $144,856).

CLASS

2022 All-Ontario Holstein Competition

ALL-ONTARIO RESERVE

Summer Heifer MAPEL WOOD DOORMAN TREASURE

Adam Clark

(Current Owners: Gary K. Lintvedt & Matt Lintvedt)

Spring Heifer LOA-DE-MEDE LAMBDA DIXIE

Loa-De-Mede Farms Ltd.

(Current Owners: Brian Joseph Enright and Eddie & Mandi Bue)

KARNVIEW ALLIGATOR MAGIC

Karnview Farms Inc., Mauranne Hebert, Bay Holsteins

HODGLYNN ALLIGATOR HONEYPOT

Owners: Agriber Societa Agricola Srl, Beckridge Holsteins, Oscar & Eric Dupasquier and Quality Holsteins

Winter Heifer

KARNVIEW HANIKO JULIET

Clarkvalley Holsteins (Current Owner: Jim Butler)

Fall Heifer REPA DRH ASHBY JENNIDREAM Velthuis Farms Ltd.

Summer Yearling MILKSOURCE TSTRM TANBARK-ET

Brian Joseph Enright and Riverdown Holsteins

KENTVILLE DOC VANCOUVER

Brian Joseph Enright, Jaquemet Holsteins and Riverdown Holsteins

LORMARR LEA ALLEYOOP SWISH

Dalton J. Faris

KARNVIEW GENIE ROZELLA

Ronald Grandy

Spring Yearling

BELMORAL KAMASUTRA MASTER

Agriber Societa Agricola Srl, Beckridge Holsteins, Marcello Ladina and Quality Holsteins

Winter Yearling KINGSWAY ALLIGATOR A TWIX Velthuis Farms Ltd.

Junior Breeder’s Herd KINGSWAY FARMS

Winter Yearling in Milk HODGLYNN UNIX DIOR

Hodglynn Holsteins (Current Owners: Crackholm Holsteins and Ferme Jacobs Inc.)

KENTVILLE CHIEF BODACIOUS

Barclay Phoenix, Keaton Phoenix and Kentville Holsteins

BECKRIDGE LASVEGAS MIRAGE

Agriber Societa Agricola Srl, Beckridge Holsteins and Quality Holsteins

KARNVIEW FARMS INC.

JACOBS LAMBDA LASSY

Owners: Joel Phoenix, Kentville Holsteins and T&L Cattle Ltd.

Fall Yearling in Milk

GLEANN AVALANCHE GAEL

Ronald Grandy

Summer 2-Year-Old SIGNATURE UNIX ALINA Kingsway Farms and Velthuis Farms Ltd.

Spring 2-Year-Old

RED OAK SWIFT JACKIE

Brian Carscadden, Ferme Blondin, Hodglynn Holsteins, Matthew Forestell and Trentward Farms

Winter 2-Year-Old C V F KING DOC SUNSET

Dalton J. Faris

Fall 2-Year-Old

Jr. 3-Year-Old

Sr. 3-Year-Old

RAYPIEN UNIX ADELE

Agriber Societa Agricola Srl, Beckridge Holsteins and Quality Holsteins

HODGLYNN VICTOR LOLA

H odglynn Holsteins and Little Star Holsteins

ULMAR SIDEKICK EVA

Pfister Dairy, Agriber Societa Agricola Srl, Beckridge Holsteins, Oscar & Eric Dupasquier and Quality Holsteins

EIXDALE PWRUP ALONGSIDE

Andrew den Haan and Plum Valley Holsteins

HILROSE MOOVIN ADELINA-RED

Hodglynn Holsteins, Jim & Joel Phoenix and McCallum Farms

BRIDGEVIEW IMPRESSION DONNING Bridgeview Farms

HOWARD-VIEW CRSBUL DISCODANCER

Howard-Haven Holsteins and Howard-View Holsteins

SCO-LO DEVOUR FOXIE-ET

Hodglynn Holsteins and Kingsway Farms

EMBRDALE JILLIAN UNIX

Joel Phoenix, Trent Valley Holsteins and Wendon Holsteins

FRAELAND UNIX BUTTERTART

Beckridge Holsteins and Fraeland Farms

2022 All-Ontario Holstein Competition

CLASS

ALL-ONTARIO RESERVE

4-Year-Old QUALITY SOLOMON FROTASTIC

Agriber Societa Agricola Srl, Beckridge Holsteins and Quality Holsteins

5-Year-Old GLEN ISLAY SENNET TORANCE

Clarkvalley Holsteins and Adam Clark

Mature Cow ERROLEA AVALANCHE BRAZIL

Errolea Holsteins and Hodglynn Holsteins

Longtime Production Cow UPPER CANADA ATWOOD DELIGHT

Kingsway Farms

Breeder’s Herd QUALITY HOLSTEINS

4-H Spring Heifer KNONAUDALE SASSY JAZZY

Exhibited by: Myla Bretzler; Owners: Knonaudale Farms Inc., Bay Holsteins and Mauranne Hebert

4-H Winter Heifer PRETTYRIVER REVERE PATINA

Exhibited by: Megan Ford; Owners: Evan Stanley and Pretty River Holsteins

4-H Fall Heifer MS AOL REALIST RED-ET

Exhibited by: Nolan Allardyce; Owners: Allarway Holsteins and Sunny Terrace Holsteins

4-H Summer Heifer BOSDALE LAMBDA LUSTERIA

Exhibited by: Rhett Terpstra Owners: Bosdale Farms Inc. and Rhett Terpstra

4-H Spring Yearling KENTVILLE CHIEF BODACIOUS

Exhibited by: Keaton Phoenix; Owners: Barclay Phoenix, Keaton Phoenix, and Kentville Holsteins

Jr. All-Ontario PRETTYRIVER REVERE PATINA Evan Stanley and Pretty River Holsteins

Red & White Jr. Heifer KARNVIEW RED ROCKET P Up-Ridge Holsteins

Red & White Yearling, non-milking WAYBRU ANALYST’S ALLURE-RED Clarkvalley Holsteins and Leachfield

(Current Owners: William H. Schilling)

Red & White Cow HILROSE MOOVIN ADELINA-RED Hodglynn Holsteins, Jim & Joel Phoenix and McCallum Farms

BUDJON-VAIL SEBISCUIT-TW-ET

Kingsway Farms and William H Shilling

RYLA SID CASSIE

Jim Phoenix, Joel Phoenix, Trent Valley Holsteins and Werrhurst Holsteins

HICKLEE ARMANI ARIEL

Cameron Hickling, Adrian and Megan Franken

ALTONA LEA

SMYGWATYS AFTER PARTY WARRIOR

Exhibited by: Emily Smygwaty; Owner: Hamming Holsteins Ltd.

KARNVIEW DOORMA AMAZON

Exhibited by: Megan Atkinson; Owners: Karnview Farms Inc.

CANHOPE MASTER BRIANNA

Exhibited by: Tyler Canning; Owner: Canhope Holsteins

PHOENIXHOLME BRAVE STEPHANIE

Exhibited by: Carson Phoenix; Owner: Carl Phoenix and Family

RIVERDOWN CHIEF BANANA DAQUIRI

Exhibited by: Jocelyn Taylor; Owner: Riverdown Holsteins

LIBERTY-GEN APPLESAUCE

Ballyclare and Malden Valley Farms Ltd.

MS-AOL REALIST-RED-ET

Allarway Holsteins and Sunny Terrace Holsteins

BROOK-HOLLOW DUTTON RED-ET

Doeberiener, Bowen, Schilling, Conroy and Clarkvalley

CHUBANNA LUCKY DUCK

Agriber Societa Agricola Srl and Quality Holsteins

Combined Component Awards 2022

For Highest Fat & Protein Total Kgs. in Ontario

ALBADON HARVEY VIXEEN owned by Albadon Farms Ltd., Teeswater

Produced as 1-Year-Old in 305 days

14,095 kg. Milk 778 kg. Fat 420 kg. Protein Composite FP 1,198

BCA (Deviation) 360 (+52) Milk 540 (+181) Fat 336 (+15) Protein

ALBADON ANTONIO ROSEY, owned by Albadon Farms Ltd., Teeswater

Produced as a 2-Year-Old in 305 days

18,251 kg. Milk 901 kg. Fat 635 kg. Protein Composite FP 1,536

BCA (Deviation) 417 (+112) Milk 549 (+197) Fat 450 (+129) Protein

BOSDALE ATWOOD B PORTRAIT, owned by Bosdale Farms, Cambridge

Produced as a 3-Year-Old in 305 days

17,577 kg. Milk 1,067 kg. Fat 566 kg. Protein Composite FP 1,633

BCA (Deviation) 374 (+88) Milk 606 (+298) Fat 372(+82) Protein

BOSDALE DOORMAN LUSTER, owned by Bosdale Farms, Cambridge

Produced as a 4-Year-Old in 305 days

18,892 kg. Milk 982 kg. Fat 589 kg. Protein Composite FP 1,571

BCA (Deviation) 394 (+112) Milk 555 (+252) Fat 385 (+98) Protein

JOALFARMS ENDURE MATRIX, owned by Allan & Lorne Vis, Murillo

Produced as a 5-Year-Old in 305 days

23,830 kg. Milk 1,144 kg. Fat 766 kg. Protein Composite FP 1,692

BCA (Deviation) 446 (+199) Milk 584 (+283) Fat 461(+198) Protein

BOSDALE DOORMAN TIFFANY, owned by Bosdale Farms, Cambridge

Produced as a Mature Cow in 305 days

18,652 kg. Milk 1,110 kg. Fat 630 kg. Protein Composite FP 1,740

BCA (Deviation) 345 (+56) Milk 561 (+245) Fat 377(+84) Protein

2022 HOLSTEIN ONTARIO BOARD

BOARD OF Directors

613-577-1658

COLE VERBURG VICE-PRESIDENT ATHENS - LEEDS & GRENVILLE WAY2SUCCINCT@YAHOO.COM 613-802-3604

ADAM HUNT ELGINBURG - LENNOX & ADDINGTON TREKILI77@GMAIL.COM 613-329-2649

VISION MISSION

905-719-0196

Passionate Farmers. Prosperous Breed. Progressive Industry.

Providing outstanding service and exceptional opportunities to our members to ensure longevity and excellence in the Holstein breed.

ALAN

LISTOWEL - PERTH BOBMUR.FARMS@GMAIL.COM 519-292-6528

WILF STRENZKE PAST-PRESIDENT BRESLAU - WATERLOO WLSTRENZKE@GMAIL.COM 519-591-2436

KYLE MACLEOD MEMBER-AT-LARGE EMBRO - OXFORD KYLE_MACLEOD@HOTMAIL.CA 519-320-0729

Passion. Integrity. Respect.

CORE VALUES CORE PILLARS

Youth Activities. Education. Breed Promotion. Industry Advocates.

NATIONAL DIRECTOR NANCY BEERWORT MARTINTOWN - GLENGARRY NBEERWORT@HOLSTEIN.CA 613-330-0348

MONICA KAGI FINCH - STORMONT 63REDLODGE@GMAIL.COM

TOM HAWMAN OMEMEE - VICTORIA TOM.HAWMAN@GMAIL.COM 705-879-6773

JAMES CRANSTON PRESIDENT ANCASTER - BRANT-WENTWORTH CRANSTONBACKUP@HOTMAIL.COM

HAWTHORNE