Manitoba Beef Producers 2013 Annual Report

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Messages from the President and General Manager Committee Reports National Organization Reports


THE PRESIDENT Trevor Atchison President


n 2013, Manitoba Beef Producers (MBP) celebrated 35 years as the exclusive voice of the beef industry in Manitoba. This milestone was achieved thanks to you, the members of MBP, and the work of many other beef producers who have served with MBP and staff, who have made a lasting impact on agricultural policy in the province and nationally. I congratulate you all on the outstanding contributions you have made over the years. Over the past year, Manitoba Beef Producers’ (MBP) directors and staff worked diligently to bring your policy issues forward to governments. The year brought many challenges, but there were also positive developments for the beef industry. We hope you will take time to read about these issues in the committee reports and the reports from our national organizations. Throughout the past year, MBP continued to work with governments and other stakeholders on a range of initiatives aimed at reducing risk and increasing producer and industry resiliency. Considerable progress has been made toward achieving improved business risk management (BRM) programs for Manitoba’s beef producers. MBP welcomed the federal and provincial government announcements for a new suite of forage programs under AgriInsurance, which will take effect in 2014. MBP also welcomed the renewed commitment to livestock price insurance in the Manitoba government’s fall Throne Speech. It is hoped program details will be announced in early 2014. The introduction of a livestock price insurance program, coupled with the revamped forage insurance programs, will provide Manitoba’s beef producers with access to an improved suite of BRM programs that will be very beneficial to our beef industry.

After a slow start, most of Manitoba’s Growing Forward 2 (GF2) programs were announced by the end of 2013. Key among these was support for the Verified Beef Production (VBP) program. MBP fought hard to achieve this. Additional details can be found in the Domestic Agriculture Programs Committee report. Ensuring a smooth transition as the federal government divests itself of the Community Pasture Program remains a MBP priority. MBP has been working with governments on this file and we assisted the steering committee, which was formed by the local pastures’ Producer Advisory Committees (PAC). Another positive development in 2013 was the creation of the Livestock Predation Protection Working Group (LPPWG). You can read more about these issues in the Production Management Committee report. Efforts continue to eradicate bovine tuberculosis (TB) in Manitoba and to reduce both the financial burden and competitive disadvantage at which it places our beef producers. Read more about this issue and the work of the TB Co-ordinator in the Animal Health Committee report. Investing in research is a priority for MBP and we saw many positive developments in 2013. Details on research projects and announcements can be found in the Research Committee report. This was only a snapshot of some of the issues MBP worked on in 2013. We hope you will read the full reports for more information. Looking Ahead, many files will keep MBP directors and staff engaged in 2014. The following are some examples: t &YQBOTJPO PG 7FSJÜFE #FFG 1SPEVDUJPO t 1PUFOUJBM #FFG %FNPOTUSBUJPO 4JUF .#1 JT FYQMPSing the potential development of a forage-beef evaluation and knowledge transfer farm. t 5IF $BOBEJBO 'PPE *OTQFDUJPO "HFODZ DPOTVMUBtions on Part XII of the Health of Animals Regulations – Transportation of Animals.

t *TTVFT CFJOH FYBNJOFE VOEFS 5PNPSSPX /PX – Manitoba’s Green Plan including a ban on cosmetic use of pesticides; a new climate change plan; amendments to The Endangered Species Act in relation to ecosystem protection; water conservation and drought management, and a new regulatory system around drainage and water retention. t 1SPWJODJBM MFHJTMBUJPO XIJDI NBZ CF BNFOEFE JO the future including The Noxious Weeds Act, The Nuisance Act, The Farm Practices Protection Act and The Stable Keepers Act. t *OGPSNFE BDDFTT UP $SPXO MBOE t 6 4 NBOEBUPSZ DPVOUSZ PG PSJHJO MBCFMJOH $00- t 5IF 5SBOT 1BDJÜD 1BSUOFSTIJQ BOE OFX NBSLFUT JO Asia. All beef producers have been hit by rough times since the 2003 BSE crisis. BSE alone would have set us all back, but this has been followed by floods, mandaUPSZ DPVOUSZ PG PSJHJO MBCFMJOH JO UIF 6 4 TFWFSF GFFE shortages caused by drought and more. Fortunately, markets seem to have turned. Looking ahead, I see real reasons for optimism. We can once again think about profitability in the beef sector and talk about herd growth, rather than the declines that we have seen over the past few years. I would like to thank all members for your support over the past year. As president of Manitoba Beef Producers, I want you to know that your fellow beef producers who serve on the board of directors, along with MBP staff, are committed to serving you and your industry. Thank you to everyone who worked to bring beef issues to the forefront to ensure growth and sustainability for our beef operations in Manitoba. I look forward to meeting with beef producers and stakeholders at the 35th Annual General Meeting. If you have any questions about the Report to Members or comments, please contact us at or call 1-800-772-0458. We want to hear from you.



Trevor Atchison

Heinz Reimer

Thereza Zuk

Ramona Blyth

Ray Armbruster

Ted Artz

Dave Koslowsky

President District 6

Vice President District 4

Treasurer District 10

Secretary District 5

Past President

District 1

District 2

Cheryl McPherson

Larry Gerelus

Glen Campbell

Caron Clarke

Bill Murray

Ben Fox

Stan Foster

District 3

District 7

District 8

District 11

District 12

District 13

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District 14 (District 9 - Vacant)


GENERAL MANAGER Cam Dahl General Manager


hat does Manitoba Beef Producers (MBP) do for me? This is a common question from producers, and it is a legitimate question. Producers who pay the check-off deserve to know what return they are getting on their investment. Let me give you three specific examples from 2014—in the areas of new risk management tools, new market access and research. This fall, Manitoba Agricultural Services Corporation (MASC) announced new forage insurance programs. This met a long standing request of MBP. It is not an exaggeration to state that we now have the best forage insurance in the country. In late January, we also received the news that livestock producers in Manitoba, Saskatchewan, Alberta and B.C. will all have access to livestock price insurance. This is welcome news. MBP has been advocating for a price insurance program for some time. The combination of the new livestock price insurance and the revisions to forage insurance will give beef producers a strong and bankable risk management package. This could fundamentally change beef production in this province. Your check-off dollars are also spent on increasing market access abroad. Increasing access to international markets for Canadian beef is a big part of the work carried out by the Canadian Cattlemen’s Association (CCA) and a key reason why MBP is a member. This past year saw a significant improvement to our access into the Japanese market. In 2003, Japan closed its beef market to Canada following the detection of a case of bovine spongiform encephalopathy (BSE). Japan partially re-opened its market in 2005, but only to beef from younger cattle. The limitation presented a significant challenge to Canada’s ability to supply beef to Japan on a year-round basis. Starting February 1, 2013, Japan allowed beef imports from animals 30 months of age and under. This improvement has already delivered results as we see our exports to Japan increasing. In October, MBP welcomed the successful conclusion of an agreement in principle on the Comprehensive Economic Trade Agreement (CETA) with UIF &VSPQFBO 6OJPO &6 5IF $&5" BHSFFNFOU includes provisions for tariff-free access for 64,950

tonnes of fresh and frozen beef under three new categories. The agreement also offers tariff-free entry for all live cattle, genetics, any byproducts including most offal, tallow and rendered products, processed beef products, hides and skins. We estimate that this agreement offers more than $600 million in potential benefit to the Canadian beef sector. Over and above these concrete fiscal benefits, the agreement includes a process to resolve significant non-tariff trade barriers. The forage and price insurance announcements, increased access to Japan and the CETA agreement would not have happened without significant engagement at both the provincial and federal government levels. MBP also invests in research. We make these investments for two key reasons. First, to find ways to help you increase your productivity and reduce your costs. This is why we are investing in a forage evaluation projFDU CFJOH DBSSJFE PVU BU UIF 6OJWFSTJUZ PG .BOJUPCB We also invest in research to help give sciencebased answers to our customers’ questions on “sustainability.� Research shows that grazing cattle are an integral part of the grassland ecosystem and play an important role in nutrient recycling. We know pasture lands provide habitat to many species at risk as well as offering preservation of forests and wetlands. Research has shown that producing beef more efficiently through modern production techniques contributes to both the economic viability of beef producers and environmental sustainability. It is because of research like this that MBP has been able to partner with organizations like the Manitoba Habitat Heritage Corporation (MHHC).

We have been working with MHHC to get the message out to the public about the positive conservation contributions that you are making every day. These are just three examples of the positive impact MBP has been able to have because of your check-off investment. In the year to come, we will continue to work on these issues as well as things like: t DPNNVOJUZ QBTUVSF QSPHSBN t SFTFBSDI BOE LOPXMFEHF USBOTGFS t MPOH UFSN XBUFS NBOBHFNFOU TUSBUFHJFT t IFSE QSPUFDUJPO t BOJNBM IFBMUI JTTVFT t CPWJOF UVCFSDVMPTJT t FDPMPHJDBM HPPET BOE TFSWJDFT QSPHSBNNJOH t $SPXO MBOE QPMJDJFT t CFUUFS BDDFTT UP QIBSNBDFVUJDBMT t USBDFBCJMJUZ JTTVFT t HPWFSONFOU SFHVMBUJPOT BOE NPSF MBP will continue to represent you through advocacy, research, communication and education. We will work with our industry partners, governments, consumers and others, to improve your prosperity and ensure a sustainable future for beef production in Manitoba. I want to end my report to you on a positive note. The beef industry has come through some difficult years. Fortunately, the year ahead does not look like the hard times we have passed through. In fact, if a young producer asked me today what they should do with their cow herd, my response would be: “Double it.� I look towards 2014 with a smile on my face. I hope every beef producer does as well. And I really hope that a year from now we can look back and say that we were right.


Cam Dahl

Maureen Cousins

Kristen Lucyshyn

Esther Reimer

General Manager

Policy Analyst

Communications Coordinator

Executive Assistant

Deb Walger Finance ." / * 50 # " # & & ' 1 3 0 % 6 $ & 3 4 3



amiliar issues dominated the activities of the Animal Health Committee in 2013. One is the bovine tuberculosis (TB) file. The disease’s presence led to the loss of producers and a significant reduction in the cattle herd within the Riding Mountain Eradication Area (RMEA). This is costly for the beef industry and governments alike, and disease eradication remains a priority. MBP is working closely with federal and provincial departments, agencies and producers on this file. These efforts have been significantly aided by the work of the Bovine TB Co-ordinator, Dr. Allan Preston, who has completed his first year in that role. Dr. Preston’s contributions have led to the development of a comprehensive bovine TB management plan and enabled us to contemplate a timeframe for the end of testing in the RMEA, provided no additional TB cases are found in either wild or domestic herds. Working with governments, MBP continues to pursue research and assurance projects and initiatives to help achieve the goal of ending bovine TB testing. Some are expected to roll out in 2014. Producer participation in these measures, such as risk assessments and surveillance, is critical to their success. MBP has again asked the Manitoba government to consider providing financial assistance toward producer involvement in project activities aimed at achieving the goal of ending bovine TB testing. MBP notes the province’s annual financial contribution would fall as fewer producers are required to test their cattle for bovine TB. Further, provincial funding requirements for this initiative would end when the testing of beef herds in the RMEA ceases. MBP believes this relatively small investment would generate large returns in the bovine TB fight. Wildlife sampling is an important component in the bovine TB eradication effort. MBP welcomed the Manitoba government’s extension of the deer hunting season in the Western Control Zone and provision of free deer hunting licences in Game Hunting Areas 23 and 23A. Hunters were also eligible to receive multiple licences for turning in samples for surveillance. The committee has been working on a number of other issues as well. There was another incidence of anaplasmosis in Manitoba in the fall. The federal government has been making changes to how it manages certain federally reportable diseases, including anaplasmosis and anthrax. Certain costs and responsibilities once borne by the federal government for these diseases are coming to an end. For example, effective April 1, 2014, the federal government will no longer conduct surveillance for anaplasmosis or respond to cases of it. Testing responsibilities will fall to producers. MBP continues to lobby the provincial government to ensure the


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provincial veterinary diagnostic services laboratory is accredited for anaplasmosis testing. It is important that this capacity is available locally so samples do not have to be shipped out of province for testing. Regarding anthrax, the CFIA no longer collects and submits samples for testing, provides an initial dose of vaccine for affected herds or pays an indemnity to help cover carcass disposal costs. Reforms to the Veterinary Drugs Directorate (a division of Health Canada) are still being pursued to ensure timely licensing of products, especially if needed to control an outbreak of a certain disease or to deal with an emergent disease. The revised Code of Practice for the Care and Handling of Beef Cattle was released in September. The codes are voluntary national guidelines for the care and handling of farm animals. They promote sound management and animal care practices for housing, care, transportation and other husbandry practices.

MBP provided input to the National Farm Animal Care Council as it updated the code. MBP supports the science-based approach taken and believes the new code is grounded in practicality. The public wants to know how animals are raised. The codes can be used to explain our animal care practices to the public and policy makers, and to demonstrate our practices to customers and our trading partners. I would like to extend my thanks to my fellow committee members for their work over the past year. Respectfully submitted, HEINZ REIMER Animal Health Committee Chair Ben Fox, Vice-Chair Ted Artz Cheryl McPherson Bill Murray

Contact us for a free copy of the revised Code of Practice for the Care and Handling of Beef Cattle and MBP’s Biosecurity Guidebook. Call 1-800-772-0458 or email



he Communications Committee has worked to build on its relations with beef producers, stakeholders, governments and the public over the past year. Focus areas included working to reach out to the public by increasing our presence in the media, enhancing Cattle Country, maximizing MBP’s online presence, and public outreach through events and beef promotion. MBP has worked to build relationships with urban and rural media and we saw coverage of our beef issues, commentaries, and news releases increase over the previous year due to these efforts. GM Cam Dahl’s commentaries continue to be featured in farm and rural newspapers, he has a regular column in The Agripost, as well as online as part of his blog on, and on websites like MBP spokespersons were interviewed throughout the year covering an array of topics such as the Canada&6 5SBEF %FBM UIF SFWJTFE #FFG $PEF PG 1SBDUJDF COOL, community pastures, predator workshops, public perception involving beef products, bovine TB, feed challenges, forage insurance, Growing Forward 2 and more. MBP is gaining an excellent reputation with local and national media as the go-to source on beef and agriculture issues. MBP launched its new website in 2013 and the responses have been positive. The new site is well-organized, user friendly, and current. The site is a key communications tool for MBP. The niche carved by MBP in social media is strong and active. Our MBP Twitter feed reached 1,000 followers in 2013, with Facebook continuing to grow with over 500 connections (Page Likes and 'SJFOET 6TJOH TPDJBM NFEJB JT JOUFHSBM UP SFBDI our membership and youth who are involved in raising beef, through 4-H for example. In 2013, MBP attended key public outreach events including: Agriculture in the City at The Forks; the Royal Manitoba Winter Fair in Brandon; Agriculture in the Classroom’s events (Amazing Agriculture Adventure, Amazing Rangeland Adventure, and National Agriculture Literacy Month); Manitoba Ag Days, and Cattle Tales at the Red River Exhibition. We also brought our booth to the Manitoba Conservation Districts Annual General Meeting and Manitoba Beef and Forage Week. MBP’s newspaper Cattle Country has been in print for 15 years and it is an essential read for beef producers in Manitoba who want to know about the issues, facts and opinions that affect the beef industry in the province and across Canada. Cattle Country is continually evolving. Over the past year, the committee focused on enhancing the newspaper, maximizing advertising sales and finding production efficiencies. MBP moved to in-house advertising sales, which has helped increase our revenue while lowering costs. This

initiative along with cost-savings related to small changes in print production has resulted in a 26 per cent reduction in expenses, compared to 2012. The committee is pleased with this result. In 2013, we also hired a new editor who has updated the look and content of the newspaper. We are always open to article ideas and we welcome feedback. Cattle Country is MBP’s main communications tool for our members and the committee and staff will continue to focus on advertising sales and finding new ways to add to the quality of this newspaper. If you know a beef producer who would like to receive Cattle Country, contact MBP at MBP knows that telling producers’ stories to the urban public is important and that is why MBP is a proud partner in the campaign Agriculture More Than Ever, “an industry cause to improve perceptions and create positive dialogue about Canadian agriculture.� This initiative puts a spotlight on the facts, people and stories which make our industry special. MBP will continue to help tell the beef industry’s positive story in partnership with Agriculture More Than Ever. MBP continues to have an outstanding Beef Expert, Adriana Barros, who represented MBP in the 24th season of the Great Tastes of Manitoba (GTOM) cooking show on CTV with host, Ace Burpee. MBP is excited about the 25th season of the show in 2014. GTOM is Manitoba’s longest running TV show, and currently the top-rated cooking show in Manitoba. It is also Canada’s longest running cooking show. The commodity groups

that make up GTOM have also produced a bestselling cookbook, a website (, Signature Award winning foodManitoba commercials, and several joint recipe booklets. 6OJRVF GSPN PUIFS DPPLJOH TIPXT (SFBU 5BTUFT of Manitoba also provides the opportunity for consumers to learn about the agriculture industry in Manitoba. Through the TV show, the foodManitoba commercials are reaching more than 1 million consumers every week, and we believe we are making an impact on connecting consumers to our local, healthy food products. The videos and recipes are available at MBP also had excellent opportunities throughout the year to provide recipe demos on CTV Morning Live and Breakfast Television to promote Manitoba beef. The committee and staff will continue to work on strategies to further increase communication with MBP members and industry stakeholders, while working to raise the profile of the organization through our media tools. Respectfully submitted, TED ARTZ Communications Committee Chair Ramona Blyth, Vice-Chair Stan Foster Dave Koslowsky Cheryl McPherson Theresa Zuk ." / * 50 # " # & & ' 1 3 0 % 6 $ & 3 4 5



t has been MBP’s longstanding position with the Manitoba government that an informed access policy be developed for agricultural Crown lands. MBP strongly believes beef producers should know when someone intends to access their leased Crown lands. There are many reasons MBP is pursuing this policy. One is safety, both for our livestock and for people who may come into contact with them. Another is property losses, such as fence and forage damages, or injuries to livestock. Of utmost importance is biosecurity. Producers go to great lengths to limit the possibility of a disease affecting their herds. The transfer of a disease such as foot-and-mouth disease would have devastating economic consequences for our industry. Producers also work diligently to limit the spread of both noxious weeds and invasive species. Weeds can be difficult to manage, limit production and damage the environment. In some instances they pose a health hazard to our livestock. Canada’s beef industry has invested considerable resources into developing biosecurity policies. In August 2012, the Canadian Food Inspection Agency and the Canadian Cattlemen’s Association released a national Canadian Beef Cattle On-Farm Biosecurity Standard. The purpose of the standard is to help reduce the risk of introducing and spreading endemic, emergency and foreign infectious diseases. It is built around several principles, including managing the movement of people, vehicles, equipment and tools, and fostering employee knowledge and training on biosecurity practices and principles. MBP has also developed its own biosecurity manual and delivers biosecurity workshops as part of the Verified Beef Production Program. Further, MBP discusses biosecurity in its meetings with provincial departments and with Crown agencies like Manitoba Hydro. MBP seeks the following changes to agricultural Crown lands policies: notice to the lessee is required before public access; permission from the lessee is required before public access; and, lessees should be given the ability to discourage public access where there is high risk to public safety. MBP participates in the Agricultural Crown Lands Act Stakeholders Committee which examines matters such as agricultural Crown lands rental rates. The current rates are in effect for the period 2013-2015. It is MBP’s position that it will not support future increases in the rental rates until the Manitoba government enacts an informed access policy for agricultural Crown lands. MBP welcomes the opportunity to work


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with provincial officials to help shape this needed policy. Once such a policy is in place, MBP is willing to re-examine changes to the rental rate. MBP is still requesting that Manitoba Agriculture, Food and Rural Development have sole responsibility for approving the sale of Crown lands to the lessee for agricultural production. The goal is to accelerate the approval process which can be very lengthy. I offer my thanks to my fellow committee members for their work this past year. Respectfully submitted, BILL MURRAY Crown Lands Committee Chair Stan Foster, Vice-Chair Caron Clarke Ben Fox



inding ways to help beef producers better manage risk remains a major priority for MBP. This was the focus of much of the Domestic Agriculture Programs Committee’s work in 2013. The Canada-Manitoba Growing Forward 2 (GF2) bilateral agreement was signed in April. Its purpose is to deliver a range of business risk management (BRM) and non-business risk management programs in Manitoba. Priority items for MBP during the GF2 consultations included: implementation of a livestock price insurance program; increased spending for research and innovation; support for programs such as Verified Beef Production (VBP) and traceability; and, improved market access. MBP is pleased support has been achieved for the continuation of the VBP Program. MBP fought diligently for this as it sees considerable value in the program. The VBP program is an important tool in telling the public and our customers how beef is raised. Producers participating in the VBP program may be eligible for GF2 funding toward equipment purchases and toward the first audit. Producers implementing biosecurity measures may also be eligible for GF2 funding. MBP will continue to deliver both VBP and biosecurity workshops, and we look forward to new modules being added to the VBP program related to animal care and the environment. There is also GF2 support for Ecological Goods and Services (EG&S) programming targeted at beneficial management practices (BMPs) focusing on water quality. However, producers cannot apply directly for BMP funding. Instead, program funding flows to Conservation Districts which will work with producers to implement BMPs. MBP would have preferred producers be given direct access to program funding. In managing private and public lands in Manitoba, beef producers provide substantial ecosystem services and this should be recognized. MBP will provide input to governments about future EG&S programming to ensure it delivers maximum benefits for both producers and governments. Another key GF2 commitment deals with the creation of a livestock price insurance program, a commitment reaffirmed in the Manitoba government’s fall 2013 Throne Speech. MBP appreciates efforts by the federal and provincial governments to roll out this needed program. The beef sector has been at a competitive disadvantage due to the lack of a price insurance program. It is hoped program details will be announced early in 2014. Interest remains in seeing livestock price insurance made available as a backstop for producers wishing to participate in the Advance Payments Program, as opposed to the current requirement for enrolment in AgriStability. In late 2013, the federal government announced there may be changes to

the delivery of this cash advance program, including the types of security requirements that can be used. MBP will be providing input into this. MBP also applauds the federal and provincial governments for introducing a new suite of forage programs under AgriInsurance. They will take effect in 2014. Program enhancements include: increased flexibility in the level of coverage; individual coverage rather than a regional approach; differentiated coverage for different forages and mixes; and, a disaster component. Like crop insurance, a portion of the premium costs will be paid by the federal and provincial governments. MBP has sought changes like these for several years. For example, low take-up on programs like pasture insurance was indicative of their lack of responsiveness to producers’ needs. MBP believes the introduction of a livestock price insurance program, coupled with the revamped forage insurance programs, will provide Manitoba’s beef producers with access to an improved suite of BRM programs that will be very beneficial to our industry. MBP will monitor both programs and provide feedback to governments as to their workability and effectiveness. The detrimental effects of the 2011 flood are still being felt by our industry. The committee continues to lobby governments to address outstanding matters from the 2011 flood, such as unresolved claims issues. Revisions are required as well to the Disaster Financial Assistance Program to ensure it is more responsive to the needs of modern agricultural operations.

It is also very important that governments are committed to ensuring there are strong mitigation measures in place to reduce future risks associated with flooding. MBP will continue to advocate for this. Thank you to my fellow committee members for their work on these varied issues in 2013. Respectfully submitted, CARON CLARKE Domestic Agriculture Programs Committee Chair Larry Gerelus, Vice-Chair Ramona Blyth Bill Murray

." / * 50 # " # & & ' 1 3 0 % 6 $ & 3 4 7



here was no shortage of topics for MBP’s Environment Committee to examine in 2013. Issues related to water quantity and quality again dominated much the Committee’s work. The effects of the 2011 flood are still being felt in relation to unresolved claims, slow pasture and forage recovery and debris clean-up. MBP continues to lobby governments for quick resolution to these issues given the significant economic and environmental toll on our industry. The Lake Manitoba/Lake St. Martin Regulation Review Committee issued its report in April 2013. MBP’s Caron Clarke sat on the committee. Some of the recommendations included: making the emergency flood channel permanent; building a second channel between Lake Manitoba and Lake St. Martin; and, lowering the range of Lake Manitoba for five years to help allow marshes and beach ridges to re-establish. It is MBP’s position that lake outflows must match inflows. MBP also provided input to the 2011 Manitoba Flood Review Task Force. Its April 2013 report recommended more water storage, such as dams, as well as storing water in tributaries along the Assiniboine River. Other elements looked at operating protocols at the Shellmouth Reservoir and whether there is merit to buyouts of the floodprone valley bottom lands downstream of the Shellmouth Dam. MBP sought compensation for artificial flooding related to the operations of the Shellmouth Dam in 2011 and 2012. This was announced in November. Manitoba Infrastructure and Transportation has initiated an Assiniboine River and Lake Manitoba Basins Flood Mitigation Study. The province is also reviewing the operating guidelines for the Portage Diversion, Fairford Water Control Structure and the Red River Floodway. MBP will be monitoring both of these initiatives and providing input as required. Caron Clarke continued as MBP’s representative to the Lake Manitoba Flood Rehabilitation Committee and Trevor Atchison sat on the South West 2011 Flood Strategy Committee. In 2012, MBP took part in provincial consultations on the development of a Surface Water Management Strategy. The focus is likely to be on areas such drainage, water quality and quantity, wetland retention, flooding and drought, among others. Release of this new strategy is pending. Disaster-related and chronic flooding, excess moisture conditions, and drought exact a heavy toll on Manitoba’s beef industry. MBP believes the existing infrastructure and control structures do not allow for appropriate upstream and downstream water management. While compensation programs have helped, it is MBP’s position that 8

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a comprehensive long-term water management strategy is needed for the province. MBP also continues to provide feedback on water quality and nutrient management issues. In 2012, MBP provided input as the Manitoba government sought feedback on whether changes are required to the Nutrient Management Regulation under The Water Protection Act. An updated regulation is still pending. MBP is participating in meetings of the Lake Friendly Stewards Alliance. The provincial government released a Lake Friendly Accord in 2013 aimed at better co-ordinating efforts to improve water quality across the Lake Winnipeg Basin. The accord was proposed in the province’s TomorrowNow – Manitoba’s Green Plan. Stakeholders, including governments, agriculture, conservation districts, researchers, environmental organizations and the business sector are represented at the Lake Friendly Stewards Alliance. Other initiatives arising out of the Green Plan have kept MBP busy. In 2013, the Endangered Species Amendment Act was amended to allow for ecosystem protection. MBP provided input on this bill. MBP was very pleased to see that in announcing this legislation the Manitoba government acknowledged that “grazing is an important management practice to maintain healthy grassland ecosystems and populations of species at risk…” MBP continues to drive home this message with all levels of government. We are still pursuing financial recognition for ecological goods and services provided by beef producers.

MBP provided a submission on the possible creation of a provincial Green Prosperity Act to replace the Sustainable Development Act. Formal legislation has yet to be introduced. The Manitoba government will be introducing a ban on the cosmetic use of pesticides in 2014. MBP does not support this given the potential implications around the spread of noxious weeds and invasive species. We will continue to advocate for legislation that is based on sound science. MBP has been participating in meetings around the creation of a Canadian Roundtable for Sustainable Beef, an action spearheaded by the Canadian Cattlemen’s Association. The initiative is focusing on the environmental, economic and social sustainability of the beef industry. I would like to extend my appreciation to the committee members for their considerable efforts on such a diverse range of issues. Respectfully submitted, GLEN CAMPBELL Environment Committee Chair Caron Clarke, Vice-Chair Stan Foster Bill Murray Heinz Reimer



ver the past year, the Feedlot Committee examined issues ranging from government regulations to USBEF 6 4 NBOEBUPSZ DPVOUSZ PG origin labeling (COOL) and market impacts resulting from the voluntary suspension of sales of Zilmax by Merck. The committee is comprised of representatives from Manitoba Beef Producers as well as Manitoba’s feedlot sector. It offers an important perspective on local, national and international issues that impact the viability of our local feedlot operations. Mandatory COOL is the most significant hurdle GBDJOH UIF .BOJUPCB GFFEMPU TFDUPS 5IJT 6 4 QSPtectionist measure is likely having a greater negative impact on the feeding sector in Manitoba when compared to the rest of Canada. Due to restrictive new measures that came into place in 2013, virtually no finished cattle are moving from .BOJUPCB JOUP UIF 6 4 'FX DBUUMF XJMM CF ÜOJTIFE in Manitoba while these regulations remain in place. Profitability in Manitoba’s feeding sector was further squeezed in 2012 because of high feed prices caused by that year’s North American drought. A large 2013 crop has helped stabilize feed-grain prices but feeding sector margins remain tight. This likely means a continued decline of the number of cattle on feed in Manitoba. Every link in the beef production chain depends upon the other industry sectors. This is true of the feedlot sector as well. Local feedlot operators are concerned about the volume of Manitoba cows that moved to market in fall 2013. Rebuilding Manitoba’s feeding sector will require an end to the ongoing decline in the cow-calf herd and a return to herd growth. Much of the committee’s work involves providing input to MBP and the National Cattle Feeders’ Association (NCFA) about government policies and regulations that impact feedlot operations. For example, feedlot operators provided concrete examples of how the new mandatory COOL regulations will impact individual operations. This information was forwarded to Agriculture and Agri-Food Canada and is now part of the process for the next steps in Canada’s challenge at the World Trade Organization. Feedlot operators also provided feedback to MBP on the development of an anticipated livestock price insurance program, labour issues, potential new transportation regulations, potential new regulations on traceability and MBP’s subNJTTJPOT UP UIF $BOBEB 6 4 3FHVMBUPSZ $P PQFSation Council. The Feedlot Committee is also an important conduit for taking Manitoba’s feedlot operators’ concerns forward nationally through the NCFA.

I serve as the Vice-Chair of the NCFA and as the feeder representative on the federal government’s Beef Cattle Producer Advisory Committee. Through my role at the national level, I have been to Ottawa lobbying ministers, members of Parliament, and senior officials on key issues facing our industry. I have also been part of a NCFA delegation that went to Washington, D.C., as part of the effort to have mandatory COOL changed. MBP always has a feedlot representative in the delegation sent to the Canada Beef Inc. Annual Forum. On behalf of the committee, I want to thank Harry Dalke for taking on this role this past year. It is anticipated there will be a renewed focus on environmental issues in 2014 as the provincial government continues implementing its TomorrowNow – Manitoba’s Green Plan. New regulations can have a negative impact on the level of investment in Manitoba’s feeding sector if they are not based on science and change with the winds of public opinion. The committee supports MBP’s position that government policies and regulations must be based on sound science. Further, the committee stresses the importance of having departmental staff who are very knowledgeable about livestock production and agricultural landscape management practices involved in on-farm visits regarding government regulations. The agreement in principle on trade with the &VSPQFBO 6OJPO &6 PQFOT VQ UIF QPTTJCJMJUZ for growth in Manitoba’s feeding sector. Governments have given us the opportunity of increased access and as an industry we need to make that

potential reality. Realizing the potential benefit of UIF OFX $BOBEB &6 USBEF BHSFFNFOU XJMM SFRVJSF feedlots, packers and cow-calf operators to work UPHFUIFS UP EFMJWFS UIF QSPEVDU &6 DPOTVNFST want. This will certainly be one of the areas we will focus on in 2014. In closing, I would like to thank my fellow committee members for their work throughout the year on a very broad range of issues. Respectfully submitted, LARRY SCHWEITZER Feedlot Committee Chair Harry Dalke Claire Scott Trevor Atchison Ben Fox Larry Gerelus

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hallenging weather conditions, the Community Pasture Program, biosecurity policies, workplace safety and health regulations and traceability were a few of the issues the committee examined in 2013. The protracted winter of 2012-2013 posed many production challenges, including feed shortages and the threat of spring flooding. MBP worked with officials from Manitoba Agriculture, Food and Rural Development (MAFRD) and other departments to help get information out to producers about both feed management strategies and flood preparedness. Another MBP priority has been ensuring a smooth transition as the federal government divests itself of the Community Pasture Program. MBP has been working on this with the federal and provincial governments, as well as the steering committee formed by MBP and the local pastures’ Producer Advisory Committees (PAC). The latter recommended the creation of the Association of Manitoba Community Pastures (AMCP) to help oversee pasture management. The goal is to ensure the transfer of all PFRA pastures to the AMCP. The proposed business model would ensure the pasture program functions essentially as it had been operating. Questions related to transition funding, taxation, inventory and equipment needs, and staffing remained at year’s end. MBP asked that these questions be swiftly answered so the new management plan can roll out in time for the 2014 pasture season. MBP believes progress is being made on this important issue. Manitoba’s Agriculture Minister Ron Kostyshyn spoke publicly in the fall of 2013 about his commitment to the pasture program. Preserving the program would provide substantial economic and environmental benefits. MBP is offering biosecurity workshops in conjunction with the Verified Beef Production (VBP) program to encourage adoption of these important practices on our farms and ranches. As well, MBP works with the provincial government and Crown corporations to raise awareness of biosecurity practices. For example, MBP met with Manitoba Hydro officials to discuss the importance of both Hydro and its contractors following sound biosecurity policies. MBP provided detailed information about beef industry biosecurity policies to Manitoba Hydro and continues to provide feedback. Similar concerns have been shared by MBP with Manitoba Workplace Safety and Health as their staff conduct on-farm visits. MBP is pleased funding has been secured under Growing Forward 2 for the continuation of the VBP program in Manitoba and nationally. The Canadian Cattlemen’s Association is seeking to have new program modules added for animal care and the environment. MBP supports this. Our customers and consumers are increasingly interested in how beef cattle are raised in Canada, and programs like VBP can help answer their questions about the industry’s sustainability practices.


20 1 3 R E P O R T TO M E M B E R S

In a similar vein, MBP has been participating in meetings around the creation of a Canadian Roundtable for Sustainable Beef, an action led by the Canadian Cattlemen’s Association. The initiative is focusing on the environmental, economic and social sustainability of the beef industry. Herd protection is an ongoing challenge. MBP approached Manitoba Conservation and Water Stewardship Minister Gord Mackintosh in 2012 about setting up a group to look at herd protection issues. The Livestock Predation Protection Working Group was born in early 2013, and MBP is one of the cochairs. Participants include provincial departments and agencies, Agriculture and Agri-Food Canada, other livestock groups and the Manitoba Trappers Association. Its primary purpose is to explore strategies for reducing predation and the costly losses associated with it. In fall 2013 the working group hosted six predator workshops. Methods to reduce the risk of predation were reviewed, feedback was sought on what is or isn’t working, and producers got acquainted with trappers’ services. The working group will continue to explore new tools and strategies to help reduce the risk of predation. Providing feedback on government regulations and programs is an important MBP role. One issue involved a potential change to needle usage in the workplace. The change would have seen requirements applied to the livestock industry comparable to those used in a medical setting, i.e. the use of safety engineered needles. MBP explained to provincial officials how the two work settings are very different, and outlined how this change would create production and safety challenges for beef producers. The policy change did not proceed. Committee member Theresa Zuk is MBP’s representative to the Canadian Cattle Identification Agency. She sits on committees that examine matters related to

traceability, premises identification, movement documents, tag retention challenges, tag sales, and more. Regulatory changes are coming on the traceability front. The Government of Canada has passed the Safe Food for Canadians Act. Traceability is one thrust of this act and the Canadian Food Inspection Agency (CFIA) will shortly be moving on regulations that will require the use of manifests each time cattle are moved into or out of your operation. MAFRD has recently developed a new Manitoba manifest that will meet these federal requirements. These manifests are free (for now) and can be picked up at your local auction mart. MBP also provides feedback to the CFIA on traceability, such as changes to the Health of Animals Regulations. It is MBP’s position that producers have borne many costs associated with implementing cattle identification systems and there must be a commitment by governments to help offset producer costs associated with implementing new traceability initiatives. MBP also maintains that all regulatory responses of the CFIA should follow a science-based approach and should not be influenced by public opinion or perceptions of the views of our trading partners. Other issues the committee examined this year included: ensuring the Manitoba Livestock Cash Advance program is accessible for producers; the need to resolve outstanding compensation claims from past disasters; the need for sound policies around dealer bankruptcies, and many more. Respectfully submitted, CHERYL MCPHERSON Production Management Committee Chair Larry Gerelus, Vice-Chair Ted Artz Stan Foster Theresa Zuk



BP has long invested a portion of producers’ check-off dollars into research. There are many reasons for this approach. One reason relates to improved productivity and improved animal health. This includes work related to residual feed intake, bovine tuberculosis, transportation, and farm management strategies, to name a few. MBP check-off dollars have supported research in all of these areas. By building on-farm capacity, our industry becomes stronger. Research is also vital from a public policy perspective. As an industry, we expect governments to make policies based on sound science, not public sentiment. For example, if governments are making policies for nutrient management, it is important to know the fertilizer equivalence of manure. If governments are looking at climate change policies, we need to be able to identify our industry’s environmental footprint. MBP has funded research in these areas too. The public is increasingly interested in our production practices. Through research, MBP is able to demonstrate the positive benefits of beef production on the landscape, such as providing biodiversity, storing carbon and offering water retention through protection of wetlands. Some of this work has been demonstrated through MBP’s involvement in collaborative QSPKFDUT XJUI UIF 6OJWFSTJUZ PG .BOJUPCB BOE UIF former Manitoba Rural Adaptation Council. This includes a $500,000+ research project into the environmental value of Manitoba forages and the scientific quantification of carbon lifecycles on Prairie cow-calf operations. Research like this is useful in developing a strategy for forage and grassland management in Manitoba. MBP works with other industry groups, like the Beef Canada Research Council, to ensure there is maximum utilization of check-off dollars invested in beef research. This includes avoiding duplication, identifying gaps and co-ordinating needed research. This co-ordination can be seen in the area of forage research in Western Canada. This year, the 6OJWFSTJUZ PG .BOJUPCB XFMDPNFE B OFX BTTJTtant professor in sustainable grassland/livestock production systems. She will join other new researchers in Western Canada who are trying to build expertise and capacity related to forages. There were both challenges and opportunities when it came to beef research in Manitoba in 2013. MBP is disappointed the federal government made organizational changes around beef and forage research in Canada. Work previously being done at Agriculture and Agri-Food Canada’s Brandon Research Station has now been

transferred to facilities in Lacombe, Alta. Any loss in local research capacity is significant. On the positive side, MBP applauds the creation of a new Guy Carpenter Professorship in AgriculUVSF 3JTL .BOBHFNFOU BOE *OTVSBODF BU UIF 6OJversity of Manitoba. Strong risk management programs like a proposed livestock price insurance are important to our industry. MBP thanks the insurance firm Guy Carpenter for its considerable investment in this project. MBP also appreciates the work of the federal and provincial governments to help establish the professorship. MBP is exploring the possibility of establishing a beef-forage evaluation and knowledge transfer farm. It would involve a collaborative effort by those interested in fostering the growth and understanding of sustainable beef and forage production; including industry, government, research institutions and private partners. The three basic objectives of the proposed farm are: knowledge transfer to producers to help build industry capacity; demonstration and evaluation of foundational research; and knowledge transfer to the general public, policy makers and the media. The purpose of the farm would be to demonstrate to Manitoba producers advances in beneficial management practices, building upon existing sustainable beef production practices. This would help build industry capacity and increase productivity and profitability for our beef producers. I would like to thank my fellow committee members for their diligent work on research related issues this past year.

Respectfully submitted, GLEN CAMPBELL Research Committee Chair Caron Clarke, Vice-Chair Stan Foster Ben Fox Larry Gerelus

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CANADIAN CATTLEMEN’S ASSOCIATION Martin Unrau President Canadian Cattlemen’s Association


here is a sense of building momentum in the Canadian cattle industry. The third quarter of 2013 brought much progress on the market access and trade liberalization front. October’s announcement of an agreement in prinDJQMF GPS B $BOBEB &6 $PNQSFIFOTJWF BOE &DPOPNJD 5SBEF Agreement (CETA) was followed in December by the Bali Package reached at the 9th World Trade Organization (WTO) Ministerial Conference in Bali, Indonesia. These announcements are a suitable end to a year of breakthrough agreements starting with China and Japan and they came to fruition despite years of frustrating negotiations often steeped in political posturing instead of science. Let us hope the positive momentum experienced in 2013 is a sign of things to come. The removal of longstanding barriers in the CETA deal will enable Canadian beef producers to benefit from new dutyfree access for Canadian beef valued at nearly $600 million. The deal, once finalized, provides Canada’s producers with another market to pursue and helps to increase the value of every animal produced in Canada. The Bali Package contains a number of new agreements pertinent to the beef cattle industry but it has also sent an important signal. The Bali Package marks the first time new multilateral rules and trade liberalization have been agreed to since UIF 6SVHVBZ 3PVOE BHSFFNFOUT XFSF CSPVHIU JOUP GPSDF BOE the WTO was created in 1995. With the Bali Package, the WTO members have proved that they can overcome differences to produce a negotiated result. The Canadian Cattlemen’s Association (CCA) hopes the WTO can now move on to other important items that distort international agriculture production and trade such as market access and domestic support. There is renewed optimism around achieving a CanadaKorea Free Trade Agreement (FTA). During the Bali Conference, Korea announced a FTA agreement with Australia. Korea has been floating publicly its interest in joining the Trans-Pacific Partnership (TPP). In order to do so, Korea will have to be accepted by all of the existing TPP partners, a list which includes Australia, Canada and New Zealand. We believe Korea may be highly motivated to conclude bilateral agreements with Canada and New Zealand in order to pave their way into the TPP. CCA urges the Government of Canada (GoC) to quickly conclude an FTA with Korea so that Canadian beef can continue to compete in that market. CCA attended the TPP Trade Ministers meeting in Singapore Dec. 7 to 9. Many of the “rules� and the structure of the agreement appear to be coming into place, however work remains on negotiating the market access commitments. Earlier this year CCA, as part of the Five Nation’s Beef Alliance (FNBA), established a set of core principles for the TPP and emphasized that tariffs on all products should be fully eliminated without recourse to quotas or other safeguards and CCA emphasizes the importance of addressing non-tariff barriers. Japan remains a subject of interest regarding TPP negotiations. CCA strongly encourages a Japan-Canada Economic Partnership Agreement to provide full tariff free access for Canadian beef. In February 2013, Japan expanded its market BDDFTT UP BDDFQU $BOBEJBO CFFG GSPN VOEFS NPOUI 65. cattle. This development is most welcome by CCA, which persisted in its long-held view that expanded access should be for 65. DBUUMF 6 4 NBOEBUPSZ DPVOUSZ PG PSJHJO MBCFMJOH $00- 12

20 1 3 R E P O R T TO M E M B E R S

continued to demand a lot of our focus. In September 2013, the WTO granted the GoC’s request to establish a compliance panel. The panel is comprised of the same panelists whose finding that COOL discriminates against Canadian live cattle and hogs was affirmed by the WTO Appellate Body in 2012. 5IF 850 DPNQMJBODF QBOFM XJMM EFUFSNJOF XIFUIFS UIF 6 4 %FQBSUNFOU PG "HSJDVMUVSF 64%" .BZ BNFOENFOU UP UIF $00- SFHVMBUJPO DPNQMJFT XJUI UIF 6 4 T 850 PCMJHBUJPOT 5IF (P$ BOE $$" TIBSF UIF QPTJUJPO UIBU UIF 6 4 BNFOENFOU GBMMT short of compliance, and in fact increases the discrimination BHBJOTU JNQPSUFE DBUUMF BOE IPHT JO UIF 6 4 NBSLFUQMBDF 5IF compliance process is expected to take until late 2014 or longer. A WTO compliance panel ruling in Canada’s favour would allow the GoC to seek WTO authority to apply retaliatory tarJòT *O +VOF UIF (P$ SFMFBTFE B MJTU PG 6 4 DPNNPEJUJFT that could be targeted for retaliation in relation to the COOL dispute. The retaliation amount is based on the current impairment of $1.1 billion annually to the Canadian livestock sector but CCA expects this amount to increase under the amended rule now in effect. CCA is part of a coalition of meat and livestock organizaUJPOT JO UIF 6 4 $BOBEB BOE .FYJDP UIBU ĂśMFE B MBXTVJU JO +VMZ TFFLJOH UP TUSJLF EPXO UIF 64%" .BZ SFWJTJPO UP $00- "T part of that lawsuit, the coalition filed a preliminary injunction motion to block implementation of the COOL regulation QSJPS UP UIF SFTPMVUJPO PG UIF MBXTVJU *O 4FQUFNCFS UIF 6 4 District Court denied the preliminary injunction. The coaliUJPO SFRVFTUFE BO FYQFEJUFE BQQFBM UP 6 4 $PVSU PG "QQFBMT to overturn its September decision. The first oral hearings are scheduled for January 9, 2014. COOL discrimination costs Canadian cattle producers around $640 million per year in losses since implementation JO MBUF 64%" T .BZ SFHVMBUPSZ DIBOHF JT FYQFDUFE UP necessitate additional segregation which will nearly double the impact of COOL.

Domestic Issues In January 2013, JBS Food Canada, Inc. completed the transaction to purchase select Canadian assets of XL Foods Inc. The transaction closed the final chapter in the E.coli event of 2012. Pre-XL event concerns around maintaining processing infrastructure until the cattle herd expands remain. The impact of having fewer cattle available for processing is being felt and will continue into 2014. CCA is working to ensure that Canadian operations have a competitive advantage. Collapsing cow numbers created significant budget constraints for many provincial members in 2013. In Manitoba and Ontario, many producers still struggled to feed their animals and maintain their herds in the lingering aftermath of extreme weather events. CCA remains focused on AgriRecovery to assist producers. Canadian beef production is projected to be down 1.4 per cent at 2.9 billion lbs with domestic beef production down 2.3 per cent at 2.3 billion lbs and live slaughter exports up 2.9 per cent at 515.9 million lbs. The entire decline in 2013 beef production comes from smaller fed cattle production, which is expected to be down 4.9 per cent at 2.2 billion lbs. Domestic demand for beef was strong in 2012 and it will be important to find ways to maintain that or even improve it slightly as demand adjusts. We are entering a period of higher priced beef due to tight supply and beef will face increasing

MBP members of CCA board: Heinz Reimer Ted Artz Ramona Blyth pressure from an abundance of other, cheaper proteins. The Retail Beef Demand Index is projected to be down 0.8 per cent at 101.79 following the 6.2 per cent increase in 2012. CCA remains focused on how best to address the loss of infrastructure, from the cow-calf and feedlot sectors through to trucking and beyond. Work continues also on ensuring business risk management programs are equitable between cattle and grain sectors, to ensure beef cattle production remains attractive. In December, the GoC announced a new bill that will update the cash advance program, known formally as the Advance Payments Program. Although still in the preliminary stage for a new bill, this looks like a promising update to a good program widely used by producers. CCA is interested in learning more about all of the proposed changes as this Agricultural Growth Act will amend several other acts with varying levels of impact on beef cattle producers. CCA will be participating in the upcoming legislative and regulatory processes to present the beef cattle industry’s views on the effect of the proposed changes. The Code of Practice for the Care and Handling of Beef Cattle was released after a three year process. Code guidelines are requirements and recommended practices developed by a multi-stakeholder committee that balance practicality, public concern and science. Producers can defer to the code knowing the contents are based on the latest knowledge and science. In November, CCA was approved for AgriMarketing funding under Growing Forward 2 of $717,500 to add modules for biosecurity, animal care, and environmental stewardship to the Verified Beef Production program. CCA also welcomed the $14 million in funding for the Beef Cattle Industry Science Cluster under Growing Forward 2. Combined with industry contributions, the Cluster will invest a total of $20 million to support strategic research. The first of a sequence of releases of BIXS 2 began at year end. This first release emphasized easy import and export of data and a tool to help purchasers source important animal attributes within the beef supply chain. The evolution of BIXS 2 will continue with each successive release offering additional benefits to BIXS participants. I am looking forward to continued progress on the Canadian Roundtable for Sustainable Beef (CRSB), which held its first meeting in July, and the Canadian Cattlemen’s Foundation. These initiatives are as important to securing a sustainable future for our industry as the Cattlemen’s Young Leaders program, which identifies future leaders, and the Young Cattlemen’s Council which allows leaders a national perspective on policy and governance. Finally, Canada is now in the homestretch for the next two years in terms of being able to demonstrate to the World Organization for Animal Health (OIE) that Canada has negligible risk status for BSE. The enhanced feed ban and testing programs are doing their job. We still need to ensure our surveillance is at the appropriate level to measure the effectiveness of the controls. Producers can help in this process by continuing to participate in BSE surveillance. Respectfully Submitted, Martin Unrau President


NATIONAL CATTLE FEEDERS’ ASSOCIATION Jeff Warrack Chair National Cattle Feeders’ Association


he National Cattle Feeders’ Association (NCFA) was established in 2007 with a mandate to represent cattle feeders on national issues and collaborate with other beef organizations to improve and strengthen our industry. NCFA’s vision is to advance the national fed cattle value chain by focusing on growth and sustainability, improved competitiveness, and industry leadership. NCFA is truly national in scope. We are the one organization in Canada through which cattle feeders can speak with a unified voice. Our membership is comprised of provincial beef organizations from all major cattle feeding regions of Canada, each of which funds NCFA based on provincial fed cattle populations. NCFA members include: t #$ "TTPDJBUJPO PG $BUUMF 'FFEFST t "MCFSUB $BUUMF 'FFEFST "TTPDJBUJPO t 4BTLBUDIFXBO $BUUMFNFO T "TTPDJBUJPO t .BOJUPCB #FFG 1SPEVDFST t 0OUBSJP $BUUMF 'FFEFST "TTPDJBUJPO t -B GĂ?EĂ?SBUJPO EFT QSPEVDUFVST EF CPWJOFT EV 2VĂ?CFD In 2013, NCFA began to mature as an organization by completing the development of a comprehensive five-year strategic plan and undertaking activities that clearly demonstrate its unique role and contribution to the governance and organizational infrastructure of Canada’s beef industry. Growth and Sustainability NCFA works with governments and industry stakeholders to create a business and trade environment conducive to growth and sustainability of the cattle feeding industry. NCFA acts directly or through industry associations to support policy initiatives that enhance the productivity and efficiency of beef production, open new export markets, and enhance access to existing markets. t *O /$'" XPSLFE GPS B NPSF PQFO BOE fair international trading environment for agriculture and agri-food products by actively participating in the Canadian Agri-Food Trade Alliance (CAFTA), supporting the Government PG $BOBEB T FòPSUT UP DPODMVEF UIF $BOBEB &6 Comprehensive Economic and Trade Agreement (CETA), and advocating for Canada’s membership in the Trans-Pacific Partnership (TPP). Once implemented, CETA will provide tariff-free access to an additional 50,000 tonnes of beef per year, which represents 500,000 head and $600 million annually. t /$'" IBT DPOUJOVFE UP CBUUMF BHBJOTU UIF QSFKVEJDJBM BOE EJTDSJNJOBUPSZ 6 4 NBOEBUPSZ DPVOUSZ of-origin labeling (COOL). NCFA has argued in favour of the federal government’s potential list of retaliatory tariffs and initiated meetings with other organizations such as the Canadian Produce Marketing Association to boost domestic

support for the list. In 2013, NCFA also retained the services of John Weekes, former chief negotiator for NAFTA and Canada’s former Ambassador to the WTO, to increase our punch on mandatory COOL and other important trade files. t *O /$'" XBT BMTP BDUJWF JO IFMQJOH EFTJHO Growing Forward 2 (GF2), a $3 billion federalprovincial agriculture investment program that sets policy and funding for the next five years. NCFA urged governments to incorporate into GF2 a set of business risk management tools for the beef sector, such as price insurance, to better position the industry. NCFA also took an active role in the independent review of the XL Foods recall. Not only did NCFA contribute to the panel’s July 2013 report, we are actively engaged with the Canadian Food Inspection Agency (CFIA) to ensure the report’s recommendations are implemented. Competitiveness NCFA supports a regulatory regime that “worksâ€? for cattle feeders and better positions our industry for future growth and prosperity. NCFA advances policy approaches that remove barriers, enhance efficiency and productivity, and speed the pace of commerce. t /$'" IBT CFFO BOE XJMM DPOUJOVF UP CF B DPOTJTUFOU TVQQPSUFS PG UIF $BOBEB 64 3FHVMBUPSZ Co-operation Council (RCC), which is tasked with better aligning regulations on both sides of the border and streamlining trade. NCFA has provided input into the RCC process by advocating for electronic certification for the buying and selling of cattle and complementary veterinary drug reviews and approvals. t /$'" IBT BMTP EFWFMPQFE BO FòFDUJWF SFMBUJPOship with CFIA, which exercises significant regulatory oversight of the cattle feeding industry. NCFA has worked closely with CFIA and other industries to modernize the Product of Canada labeling guidelines and renew Canada’s feed regulations. In 2013, NCFA made numerous submissions to CFIA on topics such as the potential changes to regulations governing the transportation of livestock. NCFA will continue to advocate for practical regulations that enhance—rather than diminish—the competitiveness of Canada’s beef industry. t /$'" BMTP FOHBHFE XJUI UIF $BOBEJBO #FFG Grading Agency to advocate for changes in Canadian beef grading regulations by adopting e+v technology and a new five-class yield HSBEJOH TZTUFN CBTFE PO 6 4 TUBOEBSET *O 2013, NCFA communicated with the federal government in support of these changes, arguing that better alignment of the Canadian and 6 4 HSBEJOH TZTUFNT XPVME SFEVDF DPTUT BOE enhance competitiveness.

MBP member of NCFA board: Larry Schweitzer

Industry Leadership NCFA meets regularly with government officials to build bridges, strengthen relationships, and increase their understanding of the cattle feeding sector. We also work closely with other cattle associations to develop strategies, sponsor training and educational programs, and collaborate on industry initiatives. t 5ISPVHIPVU /$'" BDUJWFMZ MPCCJFE GPS changes to the temporary foreign worker program to reduce red tape and resolve ongoing labour shortages that continue to plague feedlots, particularly those in Western Canada. NCFA represented the beef industry on a government-industry task force examining the TFW program, and played a central role in the Labour Task Force report that emerged. t /$'" IBT CFFO BO BDUJWF QBSUJDJQBOU JO UIF “Straw Man� process, an industry-led collaborative effort designed to carve out a competitive, sustainable, and profitable cattle and beef industry in Canada. NCFA has had a seat at the Strawman Steering Committee table and will continue to engage the process as it rolls out into 2014. t *O /PWFNCFS /$'" BMTP IBE B WFSZ TVDDFTTful “Ottawa Advocacy Week.� During the course of the week, the NCFA lobby team connected with over 35 MPs from all parts of Canada, three top level Cabinet Ministers, several Ministers of State and Parliamentary Secretaries, and more than a dozen key public servants in the departments of Agriculture and Agri-Food Canada, Finance, and International Trade. NCFA hosted an MP Breakfast and also made a presentation to the House of Commons Standing Committee on Agriculture on the new CETA agreement. ‘ t /$'" BMTP QBSUJDJQBUFE BOE QSPWJEFE JOQVU JOUP the development of the new Code of Practice for the Care and Handling of Beef Cattle established by the National Farm Animal Care Council (NFACC). I am proud of the work that the NCFA board and staff accomplished during 2013 to deliver value and promote the interests of our members. I anticipate that the NCFA board will approve our long range strategic plan at our board meeting in Red Deer, Alta. in February 2014, which will help set the stage for our future success as an organization. Respectfully Submitted, Jeff Warrack Chair

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CANADA BEEF INC. Chuck MacLean Chair


he Canada Beef Inc. mandate is to promote and market beef and beef products, which the staff and board of directors take seriously. We work to bring loyalty to the brand through alignment with committed partners that delivers a return on investment. The board set three priorities for fiscal year 20122013, including an in-depth investigation of structure and representation of the board. The second goal was to have the Finance committee create a plan that focuses on Canada Beef programs and actual, measured return on investment (ROI). Lastly, the board sought to work with provinces that have issues with levy collection, and jurisdictions that claw-back portions of the levy. Highlights of the past year included: t %FWFMPQNFOU PG BO "TJBO BOE )JTQBOJD )VC model, which allows us greater flexibility when working in those market regions t *ODSFBTFE BDDFTT UP +BQBO XJUI UIFJS BQQSPWBM PG beef under 30 months, which provides the marketing team greater flexibility with increased supply t " HSPXJOH MJTU PG JOEVTUSZ QBSUOFST BSPVOE UIF world who have made a strong commitment to Canadian beef t $POUJOVBM JNQSPWFNFOU PG DPNNVOJDBUJPO BOE outreach to our stakeholders t #VJMEJOH PG UIF $BOBEJBO #FFG 4UPSZ Canada Beef’s three-year corporate strategy was the result of input from a diverse group of industry and government stakeholders. It guides the organization through business planning each year and has enabled the development of two key

MBP member of Canada Beef board: Trevor Atchison

programs: the Market Development Program (MDP) and the Market Outreach Initiative (MOI). There are currently over 150 brand license partners, 31 of XIJDI BSF JO UIF 6OJUFE 4UBUFT BOE BOPUIFS FJHIU international licensees. Our attention to value and targeting key and priority markets (and market segments) is beginning to pay dividends. We are continually evaluating where and with whom we do business. This allows us to determine where the highest value and greatest ROI resides. Moving forward into fiscal 2013-2014, progress has been made on a number of fronts. The Canada Beef board will be requesting the addition of two member-at-large seats to be included in the Farm Products Council of Canada proclamation to allow directors to be nominated and elected by Forum delegates. The two current at large seats have been designated to PEI and Nova Scotia allowing for all provinces to have equal representation. The Performance Measurement Framework adopted by Canada Beef was developed based on the recommendations provided at the Beef Industry Value Chain Roundtable. The recommendations included the use of short and medium term results indicators, as well as one longer term, five-year result based on ROI as a sole indicator of success. Secure funding for the producers’ national marketing and promotion organization is the responsibility of the board, whose job description under the governance manual is to “serve and protect.” With the Legacy Fund coming to an end in 2015, Canada Beef must ensure other sources of funding are secure.

There is an opportunity for improvement in some provinces, which are currently “clawing-back” or “withholding” check-off dollars for provincial marketing, promotion and research programs. Even though this practice is permitted in the National Check-Off Agency (NCOA) legislation, it may not be administered as well as it ought to be. This is an issue that the Canada Beef board of directors has wanted to address in the past, and now that the merger is complete the board will turn its focus to this area. Canada Beef is responsible for the collection of the National Levy and all of the legislation arising from the proclamation. National representation is defined in the proclamation and allowed Canada Beef to pursue the primary goal of the board, the Import Levies Order, which became a reality in June 2013. The levy brings logistical challenges with it that Canada Beef, and beef importers, are working towards resolving. Canada Beef is proud of this historic agreement as beef and beef products are the first agricultural product to be allowed to collect this levy. It is a privilege to serve as the chair of the board for the Beef Cattle Research and Market Development Agency operating as Canada Beef. The board of directors and I look forward to another successful year for the Canadian beef industry. Repectfully Submitted, Chuck MacLean Chair Please see our full Annual Report at

Canada Beef Inc. is an independent national organization representing the research, marketing and promotion of the Canadian cattle and beef industry worldwide. Its efforts to maximize demand for Canadian beef and optimize the value of Canadian beef products is funded by cattle producers through the National Beef Check-Off, which in turn makes it possible to access beef industry market development funds provided by the Government of Canada and the Government of Alberta.

MBP IS YOUR ORGANIZATION Manitoba Beef Producers promotes and defends beef producers’ livelihoods through a united effort. Your membership furthers our opportunities to achieve this goal. COMMUNICATION IS KEY

Contact MBP with issues that affect your operation. Make your voice heard at district meetings. Vote on issues by attending the annual general meeting. WE WANT TO HEAR FROM YOU. Please contact us today with your questions and comments at or 1-800-772-0458. 14

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Industry Support Canadian Cattle Identification Agency (CCIA) Chair Dr. Pat Burrage and General Manager Brian Caney have provided traceability presentations and high-level updates on Canadian Agri-Traceability Services (CATS) and the Tag Supply Chain Optimization Project (TSCOP) to industry audiences with a good understanding of, and support for, both of these projects. Building and reaffirming industry contacts has opened the door to further discussions, which will be critical to implementing the Cattle Implementation Plan and movement reporting successfully on a provincial, territorial and national basis. Tag Supply Chain Optimization Project (TSCOP) Through a rigorous Request for Proposal (RFP) process, Canadian Cattle Identification Agency has selected a turn-key vendor and Project Manager to help with the implementation of a single distribution system for tags in Canada. CCIA legal counsel has redrafted and enhanced the current tag retailer/dealer agreement. The new agreement states the regulations and expectations for approved tag dealers moving forward. In addition, the new agreement will implement a fee schedule in 2015 for an annual licence to sell non-breed specific, approved CCIA RFID beef cattle tags. CCIA is implementing an online web store and call centre order desk to support the quick and easy method of ordering tags via the Internet. The CCIA board of directors discussed the required system changes as well as various project start-up scenarios and approved the management team to proceed with TSCOP pending the successful negotiation of the service agreement with the turn-key vendor, which occurred in December. Canadian Agri-Traceability Services (CATS) CATS has been incorporated and held its first board meeting on August 26, 2013. Terry Kremeniuk (CCIA) was elected Chair; Norman Houle (ATQ) was elected Vice Chair and Pierre Lemieux (ATQ) was elected Finance Chair. Darcy Eddleston (CCIA) and John Stevenson (skills-based) are the other two current CATS board members. CATS recruited the executive director role, which commenced at the end of September 2013. CATS submitted a funding application to Growing Forward 2 and anticipates funding

MBP member of CCIA board: Theresa Zuk

approval shortly. Tagging Sites According to the revised Health of Animals Act regulation (s.183) which will come into force in 2014, CCIA will be responsible to provide an upto-date tagging site list within CCIA will send a form to all recorded tagging sites asking if they wish to remain a tagging site and to provide written authorization indicating they have met Canadian Food Inspection Agency (CFIA) regulatory requirements. This application form will be used to notify CCIA of a tagging site’s status; it is not a vetting process for tagging site regulation compliance. CCIA will have a waiver of liability clause on the form to protect CCIA from responsibility related to workers/facilities/safety/data collection, if a tagging site is non-compliant. Tag Retention Project Committee This committee has submitted a funding application for this five-year study to Growing Forward 2 and anticipates an approval to continue this key project shortly. This committee has retained a Project Manager and has informed producer participants of the study’s progress, what CCIA anticipates going forward with this project, and has encouraged producer participants to continue participating for statistical relevance. Technical Advisory Committee (TAC) CCIA continues to receive tag complaints with tag retention and material deterioration as the major issues. CCIA staff helped co-ordinate the ISO WG3 meeting in April 2013 in Calgary, where the Standards Council of Canada hosted 40 international subject matter experts. CCIA continues to participate at the international ISO WG3 meetings. Cattle Implementation Plan (CIP) CCIA has implemented the National Premises Identification Look-up Module and provinces/ territories are supplying the Canadian Livestock Tracking System (CLTS) database with active PID data regularly. Plans to communicate the movement requirements of the CIP to the larger industry community will be important for industry to gain a good understanding of the requirements prior to the regulations coming into force in January 2016. The CCIA board suggested Agriculture and Agri-Food Canada take the lead toward the development of a technical working group to address

the mechanics behind group movement recording and reporting, how the movement data set will be collected, what the requirements for group movement in the CLTS and/or CATS database will be, as well as costs. Traceability Support Services CCIA’s collaborative relationship with the Alberta and Saskatchewan governments continued to advance traceability support initiatives in the field by the Mobile Field Representatives in Alberta and the Producer Support Representatives in Saskatchewan. In 2013, CCIA field teams continued to work together with industry and governments fostering relationships and building on the success of the existing traceability system by assisting and educating key industry players through oneon-one interactive presentations and meeting attendance, via telephone or online support— delivering CCIA’s full range of complimentary traceability-support services. CCIA manages field support services in partnership with Alberta Agriculture and Rural Development and Saskatchewan Ministry of Agriculture, and looks forward to providing technical expertise, support, applied research and customized training to livestock producers and other industry stakeholders in 2014. Repectfully Submitted, Dr. Pat Burrage Chair

Canadian Cattle Identification Agency (CCIA) is a not-for-profit, industry-initiated and led organization incorporated to establish a national cattle identification program to support efficient trace back and containment of serious animal health and food safety concerns in the Canadian cattle herd. The agency manages the Canadian Livestock Tracking System (CLTS) database – a trace back system that maintains radio frequency identification (RFID) tag information, and is led by a board of directors made up of representatives from all sectors of the livestock industry. ." / * 50 # " # & & ' 1 3 0 % 6 $ & 3 4 1 5

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District Meetings MBP and CCA Leaders Agriculture in the Classroom .BOJUPCB :PVUI #FFG 3PVOE 6Q

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Steaks for Soldiers Predator Workshops Amazing Rangeland Adventure Great Tastes of Manitoba TV Show

9. Opening New Markets 10. Promoting Canadian Beef

MANITOBA BEEF PRODUCERS IS YOUR VOICE AS A BEEF PRODUCER The MBP check-off you pay promotes and defends beef producers’ interests and livelihoods through a united effort.

WHAT DOES MBP DO FOR PRODUCERS? 1. We ADVOCATE for beef producers on provincial and federal issues. 2. We PROVIDE a forum for discussion and the development of policies to benefit producers. 3. We FUND numerous research projects and work with research partners to meet our needs in the cattle industry. 4. We SUPPORT members with information on government policy and developments in research and production to maximize profitability. 5. We COMMUNICATE with the media and public to highlight issues and promote beef.


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BENEFITS MBP PROVIDES: 1. Representation and a voice through your vote at district meetings and the annual general meeting. 2. Manitoba representation and membership in the Canadian Cattlemen’s Association and the National Cattle Feeders’ Association. 3. Age verification services. 4. Free subscription to Cattle Country, MBP’s newspaper. 5. Free subscription to MBP’s electronic newsletter and email updates on current issues. THANK YOU FOR INVESTING YOUR CHECK-OFF DOLLARS IN YOUR ORGANIZATION.

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