2021 Beef Farmers of Ontario Annual Report

LEADING

THROUGH UNCERTAINTY ANNUAL REPORT 2021 BFO ANNUAL REPORT 2021

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WHO WE ARE Beef Farmers of Ontario (BFO) represents over 19,000 beef farmers in Ontario and is the leading organization in Ontario working with all beef farmers to develop and support landmark achievements that move Ontario’s beef industry forward sustainably and profitably. BFO is involved in a wide range of issues and initiatives that are important to all stakeholders within Ontario’s beef industry which include industry sustainability, trade, animal health and care, environment and food safety.

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BFO ANNUAL REPORT 2021

TABLE OF CONTENTS Message from the President............................................................................................................................... 4 Message du Président.......................................................................................................................................... 6 BFO Past Presidents ............................................................................................................................................ 8 2020 Board of Directors .................................................................................................................................... 9 Message from the Executive Director.............................................................................................................10 BFO’s Statement on Diversity, Equity & Inclusion.........................................................................................12 BFO Staff.................................................................................................................................................................14

BFO Reports Government Relations.........................................................................................................................................16 Research & Innovation.........................................................................................................................................18 Communications & Producer Engagement.................................................................................................. 20 Consumer Engagement.....................................................................................................................................22 Ontario Beef Market Development Program................................................................................................26 Committee Reports..............................................................................................................................................32 Ontario Beef Breeder Cooperative Program................................................................................................34 Ontario Feeder Cattle Loan Guarantee Program........................................................................................36 Market Statistics...................................................................................................................................................37

Industry In Review Beef Cattle Research Council.......................................................................................................................... 50 Canada Beef .........................................................................................................................................................52 Canadian Beef Check-off Agency...................................................................................................................54 Canadian Cattlemen’s Association..................................................................................................................56 Canadian Cattle Identification Agency...........................................................................................................58 Farm & Food Care Ontario............................................................................................................................... 60 Livestock Research Innovation Corporation.................................................................................................62 Ontario Cattle Feeders’ Association...............................................................................................................64 Ontario Beef Cattle Financial Protection Fund.............................................................................................66

BFO Financial Reports Audited Financial Statements...........................................................................................................................67 2021 Preliminary Budget.....................................................................................................................................81

BFO ANNUAL REPORT 2021

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A MESSAGE FROM THE PRESIDENT

Rob Lipsett BFO PRESIDENT

I was elected President of the Beef Farmers of Ontario in February last year. As I reflect back on the year that was, I recognize that my role as president was not to steer the ship in a new direction from that of my predecessors, nor to park it in a safe harbour. I saw my role as one to ensure Ontario’s beef industry remained viable and sustainable, and that was a challenge I embraced and looked forward to. However, the global pandemic added a new dimension to my role: leading through uncertainty.

The impact of the global pandemic was

raised the alarm regarding the economic

programming and a cattle “set-aside

far reaching in 2020 and presented many

crisis facing our industry and brought

program” to help spread out cattle sales,

disruptions and challenges for so many

an urgent request to Ottawa for federal

which would serve as temporary measures

sectors, from tourism and hospitality to

assistance. A perfect storm of market

to help restore some of the competitive

education and manufacturing. Canada’s

and trade disruptions caused average

balance in the marketplace until more

beef industry and the agri-food sector

weekly losses of $2 million over the past

permanent, long-term solutions can be

weren’t spared from impact. For Ontario’s

year in the Ontario beef industry, putting

implemented. In June, BFO welcomed an

beef farmers, trouble began in the fall of

Ontario’s beef farms at a tipping point.

announcement by federal and provincial

2019 with the closure of Ryding-Regency

Cattle processing capacity and bottlenecks

ministers of the creation of a cattle set-

and the resulting loss of federal processing

in the value chain have been a growing

aside program for Ontario to allocate $5

capacity in the province. The onset of the

problem, with processing plant utilization

million to the beef sector to help manage

COVID-19 pandemic in March compounded

up from 85 per cent in 2016 to 95 per cent

potential backlogs in processing due to the

that pressure for farmers. Fortunately,

in 2018 to over 100 per cent during peak

COVID-19 pandemic. In July, the province

processing facilities in Ontario were not

periods throughout 2019 and into 2020.

shared some good news by announcing

affected by any COVID-19 outbreaks in

As a result, access to processing space

they would contribute an additional $50

the spring, but we finished 2020 with the

was limited, and prices for finished cattle

million across the Risk Management

temporary closure of Cargill Meat Solutions

remained below breakeven prices for the

Program sectors for the 2020 program year,

in Guelph, eastern Canada’s largest federal

vast majority of the year.

fulfilling in part a campaign commitment by

processing facility, as a result of a number of positive cases among their workforce.

Other plants were also victim to the spread of COVID-19, which affected production, compounding the problem.

Facing these losses without access to

the Conservative Party.

sufficient government-supported insurance

Coming out of the fall federal-provincial-

backstops typically provided to other

territorial ministers of agriculture meeting

sectors by well-funded business risk

in late November, Canada’s Minister of

management programs, Ontario’s beef

Agriculture and Agri-Food Marie-Claude

Addressing the lack of processing capacity

farmers needed relief. BFO’s request

Bibeau committed to improving AgriStability

in eastern Canada has been one of our

for federal assistance last winter/spring

by removing the reference margin limit

top priorities since the Wynne and Harper

included business risk management

and increasing compensation rates to 80

governments. In March last year, we

funding to address the shortfall in current

per cent from 70 per cent. While we were

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BFO ANNUAL REPORT 2021

disappointed that a firm commitment could not

were able to execute the majority of our

Publicly sharing our commitments through a

be made on all our asks regarding AgriStability,

strategy as planned, and have done so with

statement of values is just the first step in the

we remain hopeful that progress will be made

excellent results.

direction of progress. Diversity, equity and

to ensure producers are soon provided with additional risk management protection.

More than ever, we understand the critical importance of maintaining a steady and

inclusion and how it plays into our activities will be part of conversations and decisions at the board and staff levels moving forward. We

Also in late November, the governments

reliable food supply and protecting the

of Canada and Ontario made a financial

safety of those who feed us. We closed

commitment of $4 million through the

the year with an announcement by the

The BFO Board of Directors and staff are

Canadian Agricultural Partnership for a new

Ontario government of the proclamation of

actively looking at our own organization and

“Meat Processors Capacity Improvement

the Security from Trespass and Protecting

current activities to see where we can do

Initiative”, providing up to $150,000 per

Food Safety Act, 2020. The Act will protect

better and how we can weave education

project for improvements to product handling

Ontario’s food supply chain without infringing

and advocacy around diversity, equity

and processing equipment at Ontario’s meat

on the right to peacefully protest and, in

and inclusion into existing activities and

processors and abattoirs.

conjunction with the Provincial Animal

programing. We are also looking at other

Welfare Services Act (PAWS), 2019, ensure

ideas, initiatives, organizations or activities to

animals are protected and cared for properly.

support or partner on to put our commitment

Ontario’s farm and commodity groups

into action. We will continue to strongly

applaud the efforts of Ontario’s Minister of

support community organizations like Feed

Agriculture, Food and Rural Affairs Ernie

Ontario, AgScape and 4-H that we know

Hardeman and the provincial government

provide important service, support, education

for working diligently with us to support the

and programing to diverse communities all

needs of Ontario’s food producers.

across the province. As we listen and learn,

While we rally to keep our farm businesses and respective sectors sustainable, consumers appear to be taking more interest in farming and recognizing the importance of everyone along the food value chain.

On that note, we were pleased to finally see Cargill Guelph certified to deliver the Certified Sustainable Beef Framework under

know we must action our words.

our commitments and actions will continue to

the Canadian Roundtable for Sustainable

We recognize our sector is not always a

Beef (CRSB). The expansion to Cargill’s

diverse industry, particularly at the farmer

Guelph facility triggered the start of financial

and association level. Throughout our supply

credits being applied to qualifying cattle,

chain, however, there is a great amount of

rewarding producers who have fulfilled CRSB

diversity among the people dedicated to

sustainability requirements. BFO was pleased

ensuring our product makes it to the tables

BFO’s annual general meeting is an event

to be involved in the delivery of the Verified

of consumers. Likewise, our consumers are

I look forward to each year because it’s

Beef Production Plus (VBP+) program, a

another incredibly diverse group from all

an opportunity for us to connect with beef

delivery agent for the CRSB program, and to

walks of life who are integral to the success

producers from across the province, industry

support Ontario Cattle Feeders’ Association’s

of our sector. I am proud to say that the BFO

sponsors and stakeholders, and key allies

(OCFA) efforts to seek approval for the

Board of Directors has endorsed the creation

to exchange ideas on how to strengthen

Ontario Corn Fed Beef Quality Assurance

and adoption of a statement of values on

Ontario’s beef industry. BFO staff have done

Program as a certification body under the

diversity, equity and inclusion that can be

a great job planning a virtual event for BFO’s

framework. With OCFA’s certification now

found on the BFO website.

59th AGM on February 17 and 18, 2021. While

complete, a significant volume of Ontario cattle will be positioned to take advantage of the sustainable beef program.

Our statement includes a number of ways in which we are committed to diversity, equity and inclusion, including but not limited to

The focus of our consumer engagement

listening and learning, speaking up against

program in 2020 was getting our content

prejudice and discriminatory language,

in-market, building relationships with

behaviour and actions, better understanding

influencers and partners, and continuing to

how policies and programs related to

build the Ontario Beef brand story with the

agriculture affect Indigenous communities,

public. Fortunately, the vast majority of our

working collaboratively with others

new strategy was designed to be carried

more knowledgeable than us on fighting

out digitally, so when the pandemic hit, we

discrimination, and evolving as we learn.

develop over time as we work to evolve the culture within the beef industry and broader agri-food sector to be more welcoming to and supportive of all members of our communities.

we will miss the face-to-face experience due to the COVID-19 restrictions, this virtual gathering of our industry members provides a forum for reflecting on the hardships of 2020, the achievements of the past year despite the limitations due to COVID-19, and the opportunities that lie ahead in the face of these challenging times. Leading through uncertainty is daunting, difficult and demanding, but as Winston Churchill once said, “difficulties mastered are opportunities won.”

BFO ANNUAL REPORT 2021

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MESSAGE DU PRÉSIDENT Rob Lipsett PRÉSIDENT DE BFO

J’ai été élu président de Beef Farmers of Ontario en février dernier. Tandis que je repense à l’année qui s’est écoulée, je reconnais que mon rôle en tant que président n’était pas de diriger le navire dans une nouvelle direction de celle de mes prédécesseurs, ni de le garer dans un port sûr. J’ai vu mon rôle comme celui de veiller à ce que l’industrie bovine de l’Ontario demeure viable et durable, et c’est un défi que j’ai accepté et que j’attendais avec impatience. Cependant, la pandémie mondiale a ajouté une nouvelle dimension à mon rôle: diriger à travers l’incertitude.

L’impact de la pandémie mondiale a été

perturbations du marché et du commerce a causé

mises en œuvre. En juin, le BFO s’est réjoui de

considérable en 2020 et a entraîné de

des pertes hebdomadaires moyennes de 2 millions

l’annonce des ministres fédéral et provinciaux

nombreuses perturbations et défis pour de

$ au cours de la dernière année dans l’industrie

de la création d’un programme de retrait de

nombreux secteurs, allant du tourisme et

du bœuf de l’Ontario, ce qui a fait en sorte que les

bovins pour l’Ontario afin d’allouer 5 millions de

l’hôtellerie à l’éducation et la fabrication.

fermes bovines de l’Ontario ont atteint un point

dollars au secteur du bœuf pour aider à gérer

L’industrie canadienne du boeuf et le secteur

critique. La capacité de transformation des bovins et

les retards potentiels dans la transformation en

agroalimentaire n’ont pas été épargnés. Pour les

les goulots d’étranglement dans la chaîne de valeur

raison de la pandémie de COVID-19. En juillet,

éleveurs de bovins de l’Ontario, les difficultés ont

constituent un problème croissant, l’utilisation des

la province a annoncé de bonnes nouvelles en

commencé à l’automne 2019 avec la fermeture

usines de transformation étant passée de 85 % en

annonçant qu’elle verserait 50 millions $ de plus

de Ryding Regency et la perte de capacité de

2016 à 95 % en 2018 et à plus de 100 % pendant

dans les secteurs du Programme de gestion des

transformation fédérale qui en a résulté dans la

les périodes de pointe en 2019 et en 2020. Par

risques pour l’année de programme 2020, ce qui

province. Le début de la pandémie de COVID-19

conséquent, l’accès à l’espace de transformation

correspond en partie à l’engagement pris pendant

en mars a aggravé cette pression pour les

était limité et les prix des bovins finis sont demeurés

la campagne électorale par le Parti conservateur.

agriculteurs. Heureusement, les installations de

inférieurs au seuil de rentabilité pour la grande

transformation de l’Ontario n’ont été touchées

majorité de l’année.

par aucune éclosion de COVID-19 au printemps, mais nous avons terminé 2020 avec la fermeture temporaire de Cargill Meat Solutions à Guelph, la plus grande installation de transformation fédérale de l’Est du Canada, en raison d’un certain nombre de cas positifs de COVID-19 cas parmi leur effectif. D’autres usines ont aussi été victimes de la propagation de la COVID-19, qui a nui à la production et aggravé le problème.

À l’issue de la réunion des ministres fédéral, provinciaux et territoriaux de l’Agriculture qui

Les éleveurs de bovins de l’Ontario avaient

a eu lieu à la fin de novembre, la ministre de

besoin d’aide pour faire face à ces pertes

l’agriculture et de l’agroalimentaire du Canada,

sans avoir accès à des garanties d’assurance

Marie-Claude Bibeau, s’est engagée à améliorer

suffisantes, financées par le gouvernement et

Agri-stabilité en supprimant la limite de la marge

généralement fournies à d’autres secteurs par des

de référence et en faisant passer les taux

programmes bien financés de gestion des risques de l’entreprise. La demande d’aide fédérale présentée par BFO l’hiver dernier et le printemps dernier comprenait du financement pour la

d’indemnisation de 70 à 80 %. Même si nous avons été déçus de ne pas obtenir un engagement ferme à l’égard de toutes nos demandes concernant Agri-stabilité, nous continuons d’espérer que des

La réduction du manque de capacité de

gestion des risques de l’entreprise afin de combler

transformation dans l’Est du Canada est l’une de

le manque à gagner dans les programmes actuels

nos grandes priorités depuis les gouvernements

et un « programme de retrait de bovins »

Wynne et Harper. En mars dernier, nous avons sonné

pour aider à étaler les ventes de bovins, ce qui

l’alarme au sujet de la crise économique à laquelle

serviraient de mesures temporaires pour aider

À la fin de novembre également, les

notre industrie est confrontée et avons présenté une

à rétablir un certain équilibre concurrentiel sur

gouvernements du Canada et de l’Ontario ont pris

demande urgente à Ottawa pour obtenir de l’aide

le marché jusqu’à ce que des solutions plus

un engagement financier de 4 millions $ dans le

du gouvernement fédéral. Une tempête parfaite de

permanentes et à long terme puissent être

cadre du Partenariat canadien pour l’agriculture

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BFO ANNUAL REPORT 2021

progrès seront réalisés pour veiller à ce que les producteurs bénéficient bientôt d’une protection supplémentaire en matière de gestion des risques.

pour une nouvelle « Initiative d’amélioration de la

l’année avec l’annonce par le gouvernement de

des conversations et des décisions qui se tiendront

capacité des transformateurs de viande », fournissant

l’Ontario de la proclamation de la Loi de 2020

au sein du conseil d’administration et du personnel.

jusqu’à 150 000$ par projet visant à améliorer

sur la protection contre l’entrée sans autorisation

Nous savons que nous devons transformer nos

l’équipement de manutention et de transformation

et sur la protection de la salubrité des aliments.

paroles en actions.

des produits dans les usines de transformation de la

Cette Loi protégera la chaîne d’approvisionnement

viande et les abattoirs de l’Ontario.

alimentaire de l’Ontario sans porter atteinte au droit

Alors que nous nous rassemblons pour assurer la durabilité de nos entreprises agricoles et de nos secteurs respectifs, les consommateurs semblent s’intéresser davantage à l’agriculture et reconnaître l’importance de tous les maillons de la chaîne de valeur alimentaire. Sur ce, nous avons été heureux de voir enfin Cargill Guelph certifié pour offrir le Cadre pour le bœuf durable certifié dans le cadre de la Table ronde canadienne sur le bœuf durable (TRCBD). L’agrandissement de l’installation de Cargill à Guelph a déclenché l’application de crédits financiers aux bovins admissibles, récompensant les producteurs qui ont satisfait aux exigences de durabilité de la TRCBD. La BFO était heureuse de participer à la prestation du programme Verified Beef Production Plus (VBP+), un agent de prestation pour le programme de la TRCBD, et d’appuyer les efforts de l’Ontario Cattle Feeders’ Association (OCFA) pour obtenir l’approbation du Programme ontarien d’assurance de la qualité du bœuf de l’Ontario en tant qu’organisme de certification en vertu du cadre. La certification de l’OCFA étant maintenant terminée, un volume important de bovins de l’Ontario sera en mesure de tirer parti du programme de bœuf durable.

En 2020, notre programme de mobilisation des consommateurs a mis l’accent sur la mise en marché de notre contenu, l’établissement de relations avec les influenceurs et les partenaires et la poursuite de la promotion de la marque Ontario Beef auprès du public. Heureusement, la vaste majorité de notre nouvelle stratégie a été conçue pour être mise en œuvre numériquement, de sorte que, lorsque la pandémie a frappé, nous avons été en mesure d’exécuter la majeure partie de notre stratégie comme prévu, et nous l’avons fait avec d’excellents résultats.

de manifester pacifiquement et, de concert avec la Loi de 2019 sur les services provinciaux visant le bien-être des animaux, veillera à ce que les animaux soient protégés et soignés adéquatement. Les groupes de producteurs agricoles et de producteurs spécialisés de l’Ontario applaudissent les efforts du ministre de l’Agriculture, de l’Alimentation et des Affaires rurales de l’Ontario, Ernie Hardeman, et du gouvernement provincial, qui ont travaillé avec diligence pour répondre aux besoins des producteurs alimentaires de l’Ontario.

Nous reconnaissons que notre secteur n’est pas toujours diversifié, surtout au niveau des agriculteurs et des associations. Tout au long de notre chaîne d’approvisionnement, cependant, il y a une grande diversité parmi les gens qui s’emploient à faire en sorte que notre produit soit vendu aux consommateurs. De même, nos consommateurs sont un autre groupe incroyablement diversifié de tous les milieux qui font partie intégrante de la réussite de notre secteur. Je suis fier de dire que le conseil d’administration du BFO a approuvé la création et l’adoption d’un énoncé de valeurs sur la diversité, l’équité et l’inclusion qui se trouve sur le site Web du BFO. Notre déclaration comprend un certain nombre de façons dont nous nous engageons à promouvoir la diversité, l’équité et l’inclusion, y compris, mais sans s’y limiter, l’écoute et l’apprentissage, la prise de parole contre les préjugés et le langage, les comportements et les actions discriminatoires, mieux comprendre comment les politiques et les programmes liés à l’agriculture touchent les collectivités autochtones, travailler en collaboration avec d’autres personnes mieux informées que nous pour lutter contre la discrimination et évoluer à mesure que nous apprenons. Le partage public

Plus que jamais, nous comprenons l’importance

de nos engagements au moyen d’un énoncé de

cruciale de maintenir un approvisionnement

valeurs n’est que la première étape dans la direction

alimentaire stable et fiable et de protéger la sécurité

du progrès. La diversité, l’équité et l’inclusion, ainsi

de ceux qui nous nourrissent. Nous avons clôturé

que leur incidence sur nos activités, feront partie

Le conseil d’administration et le personnel du BFO examinent activement notre propre organisation et nos activités actuelles pour voir ce que nous pouvons faire de mieux et comment nous pouvons intégrer l’éducation et la défense de la diversité, de l’équité et de l’inclusion dans les activités et les programmes existants. Nous examinons également d’autres idées, initiatives, organisations ou activités pour appuyer ou établir des partenariats afin de concrétiser notre engagement. Nous continuerons d’appuyer fermement des organismes communautaires comme Feed Ontario, AgScape et les 4-H qui, nous le savons, fournissent des services, du soutien, de l’éducation et des programmes importants à diverses collectivités de la province. À mesure que nous écouterons et apprendrons, nos engagements et nos actions continueront de se développer au fil du temps, alors que nous travaillons à faire évoluer la culture au sein de l’industrie du boeuf et du secteur agroalimentaire dans son ensemble pour être plus accueillants et plus favorables à tous les membres de nos collectivités.

L’assemblée générale annuelle de BFO est un événement que j’attends avec impatience chaque année parce que c’est une occasion pour nous de communiquer avec les producteurs de boeuf de toute la province, les commanditaires et les intervenants de l’industrie et les principaux alliés pour échanger des idées sur la façon de renforcer l’industrie bovine de l’Ontario. Le personnel du BFO a fait un excellent travail de planification d’un événement virtuel pour la 59e AGA du BFO les 17 et 18 février 2021. Bien que l’expérience en personne en raison des restrictions liées à la COVID-19 nous manquera, ce rassemblement virtuel de nos membres de l’industrie offre une tribune pour réfléchir aux difficultés de 2020, les réalisations de l’année écoulée en dépit des limites dues à la COVID-19, et les possibilités qui s’offrent à nous en cette période difficile. Diriger à travers l’incertitude est intimidant, difficile et exigeant, mais comme Winston Churchill l’a dit un jour, « les difficultés maîtrisées sont des occasions gagnées ».

BFO ANNUAL REPORT 2021

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BFO PAST PRESIDENTS

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1963

Bruce Mehlenbacher, Haldimand

1988

Robert Gregson, Elgin

1964

Ross Beattie, Simcoe

1989

Jim Magee, Oxford

1965

George Morris, Kent

1990

David Whittington, Peterborough

1966

Harvey Ackert, Bruce

1991

Glenn Coultes, Huron

1967 - 1968

Walter Beath, Ontario County

1992

Doug Gear, Dufferin

1969

Vern Kaufman, Oxford

1993

Robert Kerr, Kent

1970

Lawrence Markusse, Lambton

1994

Ken Summers, Victoria

1971

Hugh Grace, Lanark

1995

Harvey Graham, Durham East

1972

Tom Jackson, Peel-Halton

1996

Dale Pallister, Grey

1973

Stewart Brown, Elgin

1997

Linda Barker, Haldimand

1974

Grant Burroughes, York

1998

Bob Dobson, Renfrew

1975

Clarence Hardy, Middlesex

1999

Darlene Bowen, Temiskaming

1976

Ronald Oswald, Bruce

2000

Stan Eby, Bruce

1977

Archie Etherington, Huron

2001

Dick van der Byl, Glengarry

1978

Alex Connell, Wellington

2002

Mike Buis, Kent

1979 - 1980

Morley Shepherdson, Temiskaming

2003 - 2004

Ron Wooddisse, Wellington

1981

Gus Lask, Ontario County

2005 - 2007

Ian McKillop, Elgin

1982

Tony Noorloos, Lambton

2008 - 2009

Gord Hardy, Middlesex

1983

Robert Chapple, Kent

2010 - 2011

Curtis Royal, Simcoe

1984 - 1985

Gerhard Schickedanz, York

2012 - 2013

Dan Darling, Northumberland

1986

Edgar Wideman, Waterloo

2014 - 2015

Bob Gordanier, Dufferin

1987

Hugh Sharpe, Lennox and Addington

2016 - 2017

Matt Bowman, Temiskaming

2018 - 2019

Joe Hill, Wellington

BFO ANNUAL REPORT 2021

2020 BOARD OF DIRECTORS

ROB LIPSETT President Backgrounder Director Annan, Ont.

JACK CHAFFE Vice President Feedlot Director Mitchell, Ont.

CCA Director

Canadian Beef Checkoff Agency Director

JASON REID Cow-Calf Director Thunder Bay, Ont.

CCA Director

DON HARGRAVE Cow-Calf Director Maxwell, Ont.

DON BADOUR Cow-Calf Director Perth, Ont

JOE DICKENSON Feedlot Director Brigden, Ont.

DAVID MILLSAP Feedlot Director Creemore, Ont.

JASON LEBLOND Northern Director Powassan, Ont.

CRAIG MCLAUGHLIN Eastern Director Foresters Falls, Ont. CCA Director

RON STEVENSON Southern Director Walton, Ont.

DAN DARLING Director At-Large Castleton, Ont.

BCRC Director

CCIA Director

JORDAN MILLER Director At-Large Kagawong, Ont.

BFO ANNUAL REPORT 2021

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MESSAGE FROM THE EXECUTIVE DIRECTOR

Richard Horne EXECUTIVE DIRECTOR

I would like to start by thanking the BFO Board of Directors, Advisory Councillors, committee representatives, staff, and membership at-large for their relentless dedication and commitment to the Ontario beef industry.

I am privileged to work for a sector rooted in such deep history and tradition, and that has such pride in the work done each and every day by men and women across this great province who are committed to raising and feeding cattle to the highest standards while producing some of the best beef in the world.

Although directors and staff weren’t able to

for discussion and feedback. On this front,

BFO, Ontario Pork and Veal Farmers of

meet with producers and industry partners

large steps were taken this year that I hope

Ontario. This coalition was instrumental in

in the way we have been accustomed to

we can build on in 2021, and we welcome

helping deliver the additional $50 million

and would like over the past year, BFO

new ideas on how we can improve our

in government funding for the Ontario Risk

made a concerted effort to increase our

communication with members.

Management Program.

BFO was forced to double down on our

Similarly, our partnership with the eastern

political presence and lobbying efforts,

cattle coalition, comprised of members

and we returned our focus to more

from Ontario, Quebec and the Maritimes,

collaborative approaches with other

helped drive discussions at the national

organizations to address issues of shared

table with respect to important requests of

concern. I believe this allowed BFO to

government regarding specified risk material

achieve far more than we could have done

(SRM) removal requirements, business risk

on our own.

management enhancements, trade barriers

communications and outreach to local associations, committee representatives, supply chain partners, and the broader BFO membership to ensure important information was communicated in as broad and timely a manner as possible.

We launched a COVID-19 webpage that was updated on a weekly, sometimes daily basis. Regular industry update calls were held throughout the year to update local leadership on topics such as government decisions and announcements, BFO advocacy activities, market conditions and marketing efforts, and to serve as a forum

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BFO ANNUAL REPORT 2021

The renewal of the Ontario Agricultural Sustainability Coalition welcomed back the Grain Farmers of Ontario, Ontario

with South Korea, and the trade imbalance with the European Union and the United Kingdom, among others.

Sheep Farmers and the Ontario Fruit and

Our collaboration with the Ontario

Vegetable Growers’ Association, joining

Federation of Agriculture and the other

Ontario livestock organizations in

We also saw positive movement

Recommendations and advice

the development of the Security

towards addressing long-standing

provided by internal and external

from Trespass and Protecting

industry issues this year, which was

stakeholders and members as part

Food Safety Act helped drive that

great to see. Canada’s BSE risk

of this formal review will be assessed

legislation through the Ontario

status is on track to be lowered from

carefully in 2021 to determine what

Legislature. Many of the regulations

controlled to negligible by the World

steps, changes or tweaks need to be

that were eventually adopted came

Organisation for Animal Health this

made to improve the organization’s

from recommendations and advice

May, if all goes according to plan.

effectiveness and representation. We

developed jointly by the various farm

This has been a long time coming.

appreciate the time that participants

groups involved.

Similarly, the Canadian Food Inspection

in this review process took to help us

Agency (CFIA) has finally opened up

gain meaningful feedback and input.

The consensus-building model used by the Canadian Cattlemen’s Association throughout 2020, which included a much more prominent role for provincial organizations and the National Cattle Feeders’ Association, was, I believe, pivotal in the creation and launch of cattle set-aside programs in Alberta, Saskatchewan and Ontario. It also helped form a unified position for the cattle sector on business risk management programs.

Lastly, the partnership formed with Meat and Poultry Ontario, the Ontario Cattle Feeders’ Association, the Canadian Cattlemen’s Association and the eastern cattle coalition to draw attention to processing capacity issues in Ontario and eastern Canada led to significant government investment in the sector this year.

If there is a take-away from 2020 it is this: collaboration is key if we have any hope in convincing decisionmakers to listen and address our concerns and priorities.

to the idea of adjusting Canada’s SRM removal requirements, which has been costing our sector tens of millions in lost value every year. I am happy to see meaningful discussions on this topic now taking place within government and industry. The launch of the Certified Sustainable Beef Framework under the Canadian Roundtable for Sustainable Beef (CRSB) at the Cargill Guelph plant was also welcome and long overdue news. The triggering of financial credits from Cargill for qualifying cattle is the first tangible return on investment for producers who have fulfilled CRSB sustainability requirements through the VBP+ program.

In closing, I am thankful for the thoughtful counsel, collaborative spirit and unrelenting perseverance many members and industry colleagues within the beef and broader agri-food sector have shown throughout the year in response to the challenges facing our industry and the economy at-large. I am also deeply appreciative of the hard work and dedication of the BFO staff, who rose to challenges beyond their roles and worked so well together to accomplish what appeared to be impossible at times. 2020 was a year none of us will soon forget, but I am proud of what BFO has been able to achieve and I maintain optimism

BFO also took the time to look

about the course that we have

inward this year, launching the first

charted, and for what lies ahead.

comprehensive governance review in close to 20 years. Taking stock of how BFO conducts its affairs and how the organization can provide better value to members was an important exercise. I commend the Board of

I wish each of you and your families a good recovery from the effects COVID-19 has had on personal lives and business operations, and a happy and healthy 2021.

Directors for pursuing this project.

BFO ANNUAL REPORT 2021

11

BFO SUPPORTS ALL MEMBERS OF OUR COMMUNITY ADVOCATING FOR DIVERSITY, EQUITY & INCLUSION IN THE AGRI-FOOD SECTOR Beef Farmers of Ontario (BFO) joins with those in our community who are calling for an end to systemic racism, as well as discrimination and prejudice based on sexual orientation, gender, religion and ability (visible and invisible), and linguistic discrimination. BFO is committed to advocating for diversity, equity and inclusion within the beef industry and the broader agri-food sector, and fighting racism and discrimination in all its forms.

Our commitment comes following

that has taken us time to build and to

The BFO Board of Directors and staff are

many discussions at the board level

ensure we got it right, recognizing and

actively looking at our own organization

over the past several months with

acknowledging this commitment is not

and current activities to see where we

respect to the lack of agricultural voices

a one-time thing. It is a starting point for

can do better and how we can weave

speaking up against racial inequality

what needs to be a continually evolving

education and advocacy around diversity,

and discrimination. There were concerns

conversation and effort, and ultimately

equity and inclusion into existing activities

raised that agriculture will be left behind

a culture shift within the industry. These

and programing. We are also looking at

and out of touch with our consumers if

are more than just words on a page; they

other ideas, initiatives, organizations or

our voices aren’t used to speak up on

represent alignment and a commitment

activities to support or partner on to put

these important social issues.

to future action at our highest level.

our commitment into action. BFO’s full

We recognize the beef sector is not

Recognizing the need to develop from

always a diverse industry, particularly at

within, we are focusing on advocacy and

the farmer and association level. Further

education within the organization and its

along our supply chain, however, there

activities and among the membership.

is a great amount of diversity among

There are a number of ways in which we

the people dedicated to ensuring

are committed to development. Please

As we listen and learn, our commitments

our product makes it to the tables of

see our official statement graphic on the

and actions will continue to develop over

consumers. Likewise, our consumers are

following page for details on what our

time as we work to evolve the culture

another integral and incredibly diverse

specific commitments are.

within the beef industry and broader

group from all walks of life. We feel it is important to be a voice, build bridges, listen, learn, and support all members of our community.

12

BFO will also continue to strongly support community organizations like Feed Ontario, AgScape and 4-H that we know provide important service, support,

The result of our discussions, research

education and programing to diverse

and reflection is a statement of values

communities all across the province.

BFO ANNUAL REPORT 2021

statement of values on diversity, equity and inclusion can be found on the BFO website, and the page will be updated and built upon as we learn, evolve, and put our words into action.

agri-food sector to be more welcoming to and supportive of all members of our communities. In the meantime, if you have questions or if you have thoughts or ideas on actions to consider or areas for improvement, please connect with us.

WE SUPPORT ALL MEMBERS OF OUR COMMUNITY.

The Ontario beef industry is an ally against discrimination based on race, sexual orientation, gender, religion, and ability (visible and invisible), as well as linguistic discrimination. We recognize that we are not always a diverse industry, but we believe in fighting racism and discrimination in all its forms. These are the ways in which we are committed.

• BFO is committed to listening and learning and speaking up against prejudice and discriminatory language, behaviour and actions.

• BFO is committed to increased understanding of how policies and programs related to agriculture affect Indigenous peoples. We commit to working with these groups on contentious issues such as allowing agriculture use on Crown land.

• BFO is committed to advocating for more diversity, equity and inclusion in agriculture.

• BFO is committed to education within our industry, including educating our membership on racism and other prejudice as well as promoting diversity and allyship.

• BFO is committed to ensuring our actions are not just self-serving, including promoting and using BIPOC-owned businesses, as well as developing more diverse and authentic recipes that appeal to and celebrate our diverse communities.

• BFO is committed to working in collaboration with other groups and individuals who are more knowledgeable than us on fighting discrimination.

• BFO is committed to evolving our commitments as we learn.

BFO ANNUAL REPORT 2021

13

BFO STAFF

14

RICHARD HORNE Executive Director X 234 richard@ontariobeef.com

TAMMY PURDHAM Office Manager X 231 tammy@ontariobeef.com

CATHY GOLUBIENKO Corporate Secretary cathyg@ontariobeef.com

AMBER MCINTYRE Accountant x 222 amber@ontariobeef.com

KATHERINE FOX Manager of Policy and Issues X 236 katherine@ontariobeef.com

DARBY WHEELER Policy Advisor X 226 darby@ontariobeef.com

EVAN CHAFFE Policy Advisor X 233 evan@ontariobeef.com

LEAANNE WURMLI Director of Communications X 230 leaanne@ontariobeef.com

JENNIFER KYLE Manager of Public Engagement and Digital Strategy X 229 jennifer@ontariobeef.com

BETHANY STOREY Communications Specialist X 224 bethany@ontariobeef.com

BFO ANNUAL REPORT 2021

JAMIE GAMBLE Market Information Coordinator x 235 jamie@ontariobeef.com

DAN FERGUSON Manager of Producer Relations 905.375.8551 dan@ontariobeef.com

JACLYN HORENBERG Producer Relations Specialist 519.608.2429 jaclyn@ontariobeef.com

ROBERT MCKINLAY Producer Relations Liaison (Summer Contract) robert@ontariobeef.com

CHERYL RUSSWURM Provincial Supervisor: Ontario Feeder & Breeder Co-op Programs 519.367.5590 crfeederfin@wightman.ca

CHRIS MILLAR Check-Off Inspector 613.324.2207 chrism@ontariobeef.com

CHRIS ATTEMA BFO Contract Water Quality Specialist 905.386.0272 chris@ontariobeef.com

CATHY LASBY BFO Contract Ontario Beef Advertising Manager 519.763.8833 pams@sentex.net

BFO ANNUAL REPORT 2021

15

GOVERNMENT RELATIONS

The value of ongoing relationships with

storage, perimeter fencing and expansion

In late November, the governments of

Members of Parliament (MPs) and Members

activities, and development and expansion

Canada and Ontario made a financial

of Provincial Parliament (MPPs) became

of the province’s processing facilities

commitment of $4 million through the

more and more pronounced over the course

through infrastructure enhancements,

Canadian Agricultural Partnership for a new

of 2020, as face-to-face meetings became

access to labour, and market development.

“Meat Processors Capacity Improvement

near impossible due to COVID-19. Despite the challenges, BFO directors and staff were able to keep Ontario’s beef industry issues and initiatives top-of-mind for many politicians and government staff. BFO also coordinated a grassroots lobbying effort to encourage other provinces to join us in reaching out to MPs and MPPs on shared interests and concerns.

The closure of Ryding-Regency heightened the importance of addressing processing capacity issues in eastern Canada and securing direct financial assistance for beef producers struggling from prolonged market losses. In June, BFO welcomed an announcement by federal and provincial ministers of $5 million for an Ontario cattle set-aside program to help manage potential backlogs in processing due to COVID-19.

BFO has also focused on sufficient funding for the Ontario Risk Management Program, enhancements to AgriStability, tweaks to the Canadian Agricultural Partnership to allow cost-share funding for manure

16

BFO ANNUAL REPORT 2021

BFO did not host its annual Queen’s Park Beef Barbecue this year due to COVID-19 restrictions, but directors were able to connect with MPPs and political and ministry staff virtually. Some directors were also able to attend on-farm meetings, adhering to social distancing protocols.

In July, the province shared some good news by announcing they would contribute an additional $50 million across the RMP sectors for the 2020 program year, fulfilling in part a campaign commitment by the Conservative Party.

In August, BFO President, Rob Lipsett, and BFO Executive Director, Richard Horne, presented to the Ontario Standing Committee on Finance and Economic Affairs, highlighting the need for enhancements to business risk management programming for Ontario’s beef farmers in addition to finding solutions to the lack of processing capacity in eastern Canada.

Initiative”, providing up to $150,000 per project for improvements to product handling and processing equipment at Ontario’s meat processors and abattoirs. This was positive news for the sector, but we know more needs to be done to ensure our industry as a whole remains viable and competitive.

Leading up to the federal-provincialterritorial ministers of agriculture meeting in late November, President Rob Lipsett met (virtually) with Ontario’s Minister of Agriculture, Food and Rural Affairs Ernie Hardeman on a few occasions in preparation for the Minister’s participation in topics related to the beef industry. Also, BFO directors participated in two virtual federal lobby days with the Canadian Cattlemen’s Association (CCA). The first set of meetings was focused on the federal suite of business risk management programs and the second round of discussions focused on enhancements to AgriStability and the growing trade imbalance between Canada and the European Union and the United Kingdom. With the United Kingdom leaving

the European Union, the Government of

In December, BFO was pleased to see

Canada has been pursuing a new free trade

the proclamation of Ontario’s Security

agreement. While an interim agreement

from Trespass and Protecting Food Safety

has been struck, access to the United

Act. This new legislation will help better

Kingdom will mirror what was previously

protect farmers, their animals, livestock

available under the CETA agreement – an

transporters, and the province’s food

agreement that has placed the Canadian

supply from trespassers and extreme

beef sector at a significant disadvantage

animal rights activists. Throughout 2020,

to our European counterparts, largely as a

BFO and other agriculture organizations

result of unresolved technical barriers for

strongly supported and assisted in the

Canadian beef.

development of this legislation.

BFO is working with CCA and the Canadian

In addition to BFO’s advocacy efforts

Meat Council to expedite Canada’s

and conversations with the federal and

application for BSE Negligible Risk Status,

provincial governments, BFO’s policy

an important step for global trade. Canada’s

team addressed many policies and

application to the World Organisation for

regulations affecting the beef sector,

Animal Health to lower our BSE risk status

working with various government ministries

was officially submitted. Canada should

on a number of critical files. Priority areas

receive notice on our application some time

included CFIA’s consultation on their

this spring. As well, BFO has been allocated

proposed changes to the guidelines for

a seat on the Specified Risk Materials

simulated meat products, updates to the

(SRM) Task Force that includes industry and

Nutrient Management Act that will lessen

government representatives. The mandate

administrative burden on producers,

of the Task Force is to review Canada’s

seeking improved access to veterinarians

existing SRM removal policies and those

and livestock medicine in remote areas,

in other jurisdictions, and come up with a

advocating for interprovincial trade

set of recommendations that Canada could

opportunities, consulting on Ontario’s

assess to modernize our SRM requirements,

new animal welfare legislation, and

provided our BSE risk status is downgraded

amendments to the Ontario Immigrant

in 2021 from controlled to negligible.

Nominee Program.

BFO ANNUAL REPORT 2021

17

RESEARCH AND INNOVATION BFO Research Program

BFO has also partnered with Dairy Farmers of

In late 2019, BFO, with the assistance of the

is researching biomaterials for bale wrapping

As anticpated, cows and heifers were

Livestock Research Innovation Corporation

that could replace the use of plastic, which

moved into the new cow-calf research

(LRIC), initiated a research call for the 2020-

BFO hopes will help address past resolutions

facility in Elora early in 2020. The pastures

2023 BFO research program. We received

around plastic bale wrapping.

have been increased from 160 acres to 400

23 letters of intent from applicants. Following the letters of intent, BFO received 12 full proposals that were presented to the BFO Research Committee for deliberation. From there, 10 projects were selected that focus

The “BFO Research Investment Strategy” was reviewed and revised for the first time since 2014 with input from the Beef Cattle Research Council, the BFO Research

Ontario Beef Research Centre

acres, allowing for more rotational grazing system research on site. The animals started utilizing the new pasture system in Elora in June last year.

on the following BFO priorities:

Committee, and the BFO Board of

The new feedlot barn, which has a capacity

Directors. The updated strategy, which can

of 288, is expected to be completed and

• Environmental sustainability (5)

be found in the research section of BFO’s

ready for use in the fall of 2021. The barn

• Animal health and welfare (4)

website, will help guide BFO’s research

will have 96 more head available than the

• Antimicrobial use, resistance, and

investments for the next four years (2021

older beef feedlot. The new feedlot facility

to 2024).

includes equipment to collect individual

alternatives (2) • Forages (2)

feed intake data on the animals.

• Other (nutrition, feed efficiency, and production process) (2) • Food safety (1)

Ontario on two projects. One of the projects

18

BFO ANNUAL REPORT 2021

Livestock Research and Innovation Corporation (LRIC)

• LRIC coordinated, compiled and

tour day for new/young University of

submitted research priorities for the

Guelph faculty members with research

Ontario beef sector to inform the funding

interests in the beef and broader

BFO continues to support LRIC as a

priorities for research programs funded

livestock sector.

founding member. LRIC provides a unified

by the provincial government and

voice and conduit to the Ontario Ministry

University of Guelph.

of Agriculture, Food and Rural Affairs on research priorities for the province’s livestock sectors, which helps inform priorities for research programs funded by the province. This is an important service that ensures the beef sector’s priorities for research on both a provincial and national basis are communicated regularly to provincial funding bodies. In addition: • LRIC membership allowed BFO to utilize LRIC services to administer BFO’s research program, including our 2019 call for proposals.

• LRIC helped eliminate BFO’s research

COVID-19

station access fees at provincial research

As with everything in 2020, COVID-19

institutions, leading to considerable

affected the projects BFO is involved in by

overhead savings on BFO-funded

pushing timelines back due to restrictions

research projects.

around the work environment. BFO

• LRIC launched a “Young Researcher Mentorship Program” that connected young/new researchers at the University

continues to work with the researchers to develop plans of action and update their projects’ timelines as issues arise.

of Guelph with industry and government partners involved in the beef sector, including BFO. Part of this program included a “beef in the spotlight” farm

BFO ANNUAL REPORT 2021

19

COMMUNICATIONS & PRODUCER ENGAGEMENT Ontario Beef Magazine

posted daily to our social channels. We

Ontario Food Box program. As a result,

appreciate our following, but are always

403,000 emergency food boxes were

Ontario Beef was published five times in

focused on increasing our engagement

packaged and shipped to every corner of

2020 (February, May, August, October

and reach with our members.

the province to help alleviate the impact of

and December) and distributed to approximately 16,000 of BFO’s members, industry partners, MPs and MPPs. The magazine provides BFO members and industry stakeholders with timely information, updates on current industry issues, upcoming events, market statistics and more. We continue to update our circulation database to better reflect our active and current membership data, with the goal of ensuring all active members of BFO are receiving this publication. If you have had interruptions in receiving Ontario Beef, please contact the BFO office to verify your complete mailing address.

Beginning in 2020, Ontario Beef is now also available digitally on the BFO website.

COVID-19 for families in need.

Sharecost Program The Sharecost Program continues to provide financial support to BFO’s local associations for their hosted producer In 2020, 26 local associations received a total return of just under $62,100.

The e-newsletter captures the headlines of the week, news releases, upcoming events and weekly market information.

If you would like to receive The Bull-etin Board in your inbox, please visit the homepage of BFO’s website to sign up.

food banks and community programs across the province.

Sponsorship & Events BFO continued to support a number of

and programs from occurring, we did

initiatives throughout 2020 despite the

see a number of new and innovative

challenges of the pandemic:

engagement ideas take shape by the local associations. Qualifying producer applications in 2020 included drive-thru farm tours and educational workshops, while consumer activities included local

• 4-H Ontario - Virtual Discovery Days • AgScape • Beef Industry Convention • Beef Symposium • Christian Farmers Federation of Ontario • Fall Finale Beef Show • Grey Bruce Farmers’ Week

Partnership with Feed Ontario

• Ontario Federation of Agriculture Virtual

In 2020, BFO provided our annual

• Ontario Forage Council

donation of $20,000 to Feed Ontario to

• Ontario Junior Angus Association Virtual

purchase fresh ground beef. An additional

AGM

Show

$10,000 was also donated to support

• Royal Agriculture Winter Fair

Feed Ontario’s COVID-19 Emergency

• University of Guelph, College Royal

Food Box program that created prepacked emergency food boxes with a week’s worth of food in one centralized

20

farmers continue to support their regional

While COVID-19 prevented some events

Bull-etin Board E-Newsletter issued weekly to our subscribers in 2020.

for Ontario food banks, many local beef

and consumer engagement activities.

beef promotions and drive-thru barbecues.

The Bull-etin Board e-newsletter was

In addition to BFO’s financial support

Producer Engagement

Social Media

location for food banks across Ontario.

BFO is pleased to report $3,875 in cash

To provide opportunities for producers

BFO is active on a number of social

donations was also raised after BFO

to network and feel engaged within the

media platforms – Twitter, Facebook,

challenged producers and consumers

industry, BFO’s producer engagement

YouTube and Instagram. Information is

to rally together to support the Feed

team had planned a wide range of

BFO ANNUAL REPORT 2021

activities for 2020. Early in the year,

To address the health of our members,

in Ontario. Filming was completed at

BFO was pleased to be part of another

we launched an article series in Ontario

a cow-calf and feedlot operation to

successful Beef Symposium conference

Beef magazine and an accompanying

highlight employment opportunities in the

at the University of Guelph, and the

webpage called Wellness on the Farm,

production sector.

second edition of the Young Producer

which focuses on the overall wellbeing of

Development program held at the BFO

farmers. As an extension of these efforts,

AGM was well-received by participants.

in July we organized a virtual evening

However, the pandemic took a toll on many of the planned activities for the rest of the year. Our inaugural Feedlot Management School was to be held at the end of March, but obviously needed to be postponed. Likewise, our Beef Youth Development program, as well as the Cow-Calf Management School planned for August met the same fate.

We did, however, continue with online programming as much as possible, including our continued collaboration

presentation open to all members with agricultural mental health advocate, Lesley Kelly, as the keynote speaker.

The last component of our producer engagement activities in 2020 focused on the development of a number of online resources.

We worked with the Ontario Federation of Agriculture to support their Feeding Your Future initiative, a program focused on agri-food jobs and training opportunities

We also provided financial support to the Quebec Beef Producers to develop a Cattle Transport Training Webinar for eastern Canada which will be used to help transporters, auction barns and their employees understand and comply with the new livestock transportation regulations.

Lastly, we launched a video series on calf clubs in January, 2021. The intent of these videos is to highlight existing calf clubs, how they work and encourage producers to view these clubs as a viable option to raise and market their animals.

with OMAFRA and Ontario Sheep Farmers on three virtual Grazing Cover Crop sessions, and we hosted a couple of webinars in December for producers – one to provide an overview of Ontario’s Risk Management Program and one featuring Steve Kenyon of Greener Pastures Ranching Limited who spoke about the soil benefits of grazing cattle.

BFO ANNUAL REPORT 2021

21

CONSUMER ENGAGEMENT

As shared in last year’s report, 25 cents

While it looked a little different than

of the $1.50 provincial check-off increase,

what we had originally planned, 2020

implemented in November 2019, stays

was still a very busy year spent building

with BFO to support producer and

momentum with our audiences:

consumer engagement activities. While a lot of work in 2019 focused on rebranding Make it Ontario Beef to our new Ontario Beef identity, 2020’s efforts were spent putting our new strategy into action, engaging directly with the public to drive awareness and purchase of Ontario beef.

Traffic to the consumer website continues to increase steadily. Both of the key campaigns that were run through our social channels throughout the

Ontario Beef supports all Ontario beef

year were focused on driving traffic to

industry stakeholders by laying the

different areas of the site, and did so with

foundation for the promotion of ALL

great success. Website visits increased

Ontario beef products and the entire

by 800 per cent over the course of the

industry. Our focus is entirely on Ontario

year, and 95 per cent of the visitors were

consumers and our efforts support

first-time visitors to the site.

the Ontario Beef Market Development Program, as well as individual farmers, brands, retailers, etc.

We continue to update and tweak the site regularly to ensure it is always fresh and that new content is highlighted. Our

The focus of our consumer engagement

store locator continues to be one of the

program in 2020 was getting our content

most popular stops for visitors to the

in-market, building relationships with

website, so we continue to promote the

influencers and partners, and continuing

opportunity for butchers, retailers and

to build the Ontario Beef brand story with

farmers marketing direct. Currently, there

the public. Fortunately, the vast majority

are about 130 retailers included in the

of our new strategy was designed to be

locator, but we recognize there are still

carried out digitally. When the COVID-19

others who may wish to be included in the

pandemic hit in March 2020, we had to

listings. An application form is available

make minor tweaks to some of our key

from the office for those wishing to have

campaigns with respect to some of the

their retail business added to the map.

in-person activity that was planned, but overall, we were able to execute our digital media strategy as planned, and have done so with excellent results.

Ontbeef.ca

22

BFO ANNUAL REPORT 2021

As part of the website and consumer engagement strategy, a new e-newsletter for Ontario beef enthusiasts will launch in 2021.

Ontario Beef supports all Ontario beef industry stakeholders by laying the foundation for the promotion of ALL Ontario beef products and the entire industry.

Social Media

Each influencer showcased their unique

The focus of our Ontario Beef social

their own channels, as well as ours. Social

media channels in 2020 was to use our

content encouraged participation, asking

content to build an engaged audience

fans to share their own recipes with

across each of our channels, with the

#ontbeefburgerbattle and driving people

bulk of the effort put toward Instagram,

to a landing page where consumers could

Facebook and Pinterest. We also

get recipes from the competition and

launched our first paid social media,

learn more about Ontario beef.

which helped our content find its way in front of those who would be most interested, but who we had not yet connected with. In addition to the regular paid and organic content, we also ran two separate targeted influencer campaigns that helped amplify our messaging at

burger recipe, which was shared through

The competition was all virtual, with DIY footage, sharing and hosting. A “hub” was created on the ontbeef.ca website to serve as a home for each burger master’s video creation. All the recipes are also now available on the hub, as well as in

specific times.

the website’s recipe database.

The first campaign was the “Ontario Beef

Our second key campaign was our “Ask

Burger Battle”, which ran in July and August. The Ontario Beef Burger Battle campaign was designed to celebrate local recipes in the height of grilling season and generate awareness of Ontario beef, keeping it top of mind for

Your Local Butcher” campaign, which as the name suggests, was focused on encouraging consumers to visit local butchers and retailers and ask for Ontario beef. Particularly with shifts brought on by the pandemic, shopping local has never

our consumers during this key period.

been more important to our consumers –

The campaign was a burger creation

sourcing their food locally and supporting

competition between selected food-

their communities. This campaign was

oriented social media influencers around

designed to position local butchers,

Ontario (mostly in the GTA), hosted

retailers and farmers as a knowledgeable

and judged by Gunnarolla (aka Andrew

source that can guide consumers’ culinary

Gunadie). Influencers were selected

adventures and introduce them to the

based on their location and social media

endless possibilities of Ontario beef.

following, as well as their ability to bring a unique burger recipe to life – inspiring our consumers to ask for Ontario beef.

they are more passionate than ever about

Once again, we worked with a social media influencer, Zimmy’s Nook, to generate some fantastic content that

BFO ANNUAL REPORT 2021

23

CONSUMER ENGAGEMENT

CONTINUED

we used to draw attention to our

in a virtual capacity where applicable.

images for our transit shelter ads and

messaging and drive followers to the

We obtained a virtual booth at the Royal

butcher campaign. Hopefully 2021 will let

store locator on our website. In addition,

Agricultural Virtual Experience in the

us get back on location safely to continue

we did a modest media buy securing a

“Agriculture Zone” and welcomed over

to build our library.

number of transit shelter ads in the GTA,

400 virtual visitors over the four days. Our

Ottawa and Kitchener-Waterloo areas.

resources were viewed over 3,000 times,

The transit shelter ads were placed

and our booth and materials will remain

Education

strategically near butcher shops carrying

available to visitors for the rest of the year.

With school looking different and being

Ontario beef products and directed

unpredictable since March, our approach

consumers to visit those locations and ask for Ontario beef.

People were very engaged with the butcher-focused content, which was really well-received by both the

Video Production

CONSUMER Even despite the COVID-19 restrictions, we were still able to create a number of ENGAGEMENT new video assets. We completed three

consumer audience and the butcher/ retailer audience. Our transit shelter ads also made it onto social media thanks to a couple of butcher shops very excited about the partnership.

we have strengthened our relationship with AgScape to work on getting our beef messaging in front of students. We were able to provide some resources

new recipe videos, an environmental

for AgScape to include in their “Virtual

stewardship video featuring 2020 TESA

Camp Experience” in the spring. We

winner Paul De Jong, and a few short

were also provided with the opportunity

environmental clips to be used on social

to review resources and lesson plans

media. Most notably, we also partnered

relevant to beef production to ensure

with Farm and Food Care Ontario on a

the information accurately reflects the

Overall, our social media results for

virtual 360-degree tour of a feedlot and

industry. Moving into 2021, we are

2020 were fantastic. Our content –

cow-calf operation, and were pleased to

looking forward to an education resource

both organic and paid – made well

have that launched in time for the virtual

project in partnership with AgScape to

over 18 million impressions, reached

Royal Winter Fair. Thanks to the Brown and

develop curriculum-linked resources for

over 3.7 million users, delivered over

Nesbitt families for their help in making this

use in classrooms to complement our

780k engagements, and drove over

project happen. The 360-degree video

current educational resource offerings. In

55k website visits. We also had some

series can be found on our ontbeef.ca

September, we also had the opportunity

excellent learnings that will help us really

website and the Farm Food 360 website.

to participate in a virtual education day put on by Western Fair.

hone in and target our messaging toward our different audiences as we work to build on the momentum in 2021.

Photography As with other things, COVID-19 foiled some

to education needed to shift. As a result,

Promotional Items and Resources

Event Participation

of our photography plans for the year,

Throughout 2020, the team worked

however, we were able to capture some

on several new resources that are now

One area of our workplan that was

great on-farm shots in northern Ontario

available. These resources include a

affected the most in 2020 was events.

in the summer and with the McArthur

recipe booklet that replaces our previous

With all in-person events cancelled for

family in the fall. We also did a mini beef

individual cards, a kids’ colouring book

2020, we contributed and participated

“glamour” shoot to capture some specific

to replace the dated kids’ activity sheet,

24

BFO ANNUAL REPORT 2021

and a general Ontario beef brochure.

To coincide with the launch of the “Ask Your Local Butcher” campaign, we also developed a number of promotional items to be used in-store or in general promotion of Ontario beef, and those are available through the office.

2020 was an interesting year with its own unique set of challenges, but overall, it was a very successful year for our consumer engagement program. We are continuing to build on the momentum in 2021 and also plan to test out some new tactics, such as podcast advertising and search engine marketing. Be sure to follow Ontario Beef on social media and visit our website to keep up to date on our consumer engagement efforts, and stay tuned to our magazine for regular updates on our activities.

Our content received over 18 million impressions We reached over 3.7 million users

BFO ANNUAL REPORT 2021

25

ONTARIO BEEF MARKET DEVELOPMENT PROGRAM

BY JIM CLARK | CEO, Ontario Beef Market Development Program As with most organizations, 2020 began

numbers of slaughter cattle stabilized since

Beef. Ontario Corn Fed Beef has been

with a heightened sense of optimism within

2012. Since that time, we have also seen

the market-leading brand of Canadian

the Joint Marketing Committee. The new

a steady decline in imports, while Ontario

beef in Japan since its entrance to that

Ontario Beef Market Development Program

production’s share of consumption has

market in 2015, and it continues to see

was developed and approved, and our first

concurrently increased. This all provides a

tremendous growth. This year’s event was

year of implementation began in January

strong rationale for the increased marketing

also the initial launch of a second brand

2020. The new program provides Ontario

efforts we have undertaken.

of Ontario beef in Japan: Ontario Heritage

beef farmers with a clear path forward with a defined market development strategy featuring clearly defined objectives and comprehensive market indicators and performance measures to demonstrate

Ontario beef featured in key trade events in domestic and international markets

60,000 influential Japanese retail industry delegates annually and is the priority retail trade event in Japan.

In January, we partnered with Canada

Many other high-profile events in key

Beef to host several Ontario beef-branded

export markets that we had planned for in

I want to thank the committee members,

programs at the Restaurant Canada show.

2020 were cancelled due to the pandemic.

Rob Lipsett, Jason Reid, Craig McLaughlin,

This event provides Ontario-branded

Markets affected include Vietnam, Taiwan,

Jack Chaffe, Dale Pallister and Mike Conlin,

beef suppliers with access to national

Philippines and Singapore. As these

for their willingness to provide strong

foodservice customers and suppliers and

markets reopen, we will be in a strong

leadership and direction to the strategy.

the opportunity to showcase their products

position to re-engage with the established

in a high-priority industry event that attracts

relationships developed in each market.

return on check-off investment.

The strategy was developed to support growth for branded Ontario beef by supporting established brands in the local market, supporting the development of new Ontario beef brands, and expanding

over 20,000 industry delegates. Having Ontario beef brands represented in our national pavilion provides a high level of profile and credibility.

Promotional events in key export markets Many of our high-value export markets

our marketing efforts into key international

Ontario beef was also represented at the

continue to be severely affected by the

markets to continue to drive demand for

Japan Supermarket Trade Show in Japan

pandemic. The United Arab Emirates and

Ontario cattle. By specifying Ontario cattle

in February in collaboration with Canada

the Kingdom of Saudi Arabia are both

in these brands, the market essentially eliminates a portion of imported beef as a supply option since it is not open for substitution. Increased demand for local cattle benefits all sectors of the cattle supply chain.

We have seen the impact of the increased share of our domestic market. After several years of steady decline, we have seen Ontario fed slaughter volumes and inventory

Angus Beef. This event attracts over

26

BFO ANNUAL REPORT 2021

priority markets that have been severely

year, we had planned on hosting customers

initiatives in Ontario, as packers and

affected by losses in the tourism and

from Japan, Vietnam and Taiwan here in

retailers focus on operations and safety of

hospitality industries. With committed

Ontario, which unfortunately had to be

their employees.

partners in these markets, there is good

cancelled due to the pandemic. These

opportunity for us to gain back share once

missions provide valuable opportunities

the situation is resolved.

for foreign buyers and targeted customers

With a very strong distribution partner and retail customer base, we continue to prioritize the Japanese market by providing promotional support for existing Ontario beef brands. Japan has also been significantly affected by the pandemic, but retail demand has been very high as more consumers are cooking meals at home. Currently, there are 21 retail partners promoting Ontario beef in 567 outlets across Japan. Ontario Corn Fed Beef is the most widely recognized brand of Canadian

to understand cattle and beef production in Ontario and experience the vast natural resources of Ontario. Valued relationships with many key export customers from Japan, China, Indonesia, United Arab Emirates, Saudi Arabia and the United States have been developed through incoming trade missions.

Coronavirus pandemic affects program implementation

beef in Japan. Ontario beef export volumes

By end of February last year, implementation

and values are outpacing Canadian beef

of the strategy was being significantly

exports to Japan from 2016 to 2020.

affected by the coronavirus. It quickly became clear that the focus of the strategy

Loss of incoming trade missions Incoming trade missions are an important

The foodservice sector, which represents a significant percentage of beef sales in the province, has seen sales drop by as much as 40 per cent, as reported by market analysts. At the end of June, many dining establishments were limited to take out or patio dining with limited menu options. As the year came to an end with a provincewide lockdown of restaurants, the impact once again was significant. We also saw a massive drop in customer capacity in the catering sector, which typically drives high volume during the summer months.

With the significant challenges facing the industry, focus has shifted to supporting existing brand partners.

supporting our existing brand partners in

Promotional activities to support Ontario beef

key markets around the world.

Promotional initiatives were supported

in 2020 needed to primarily focus on

strategy in developing relationships with

The pandemic has had a significant impact

targeted customers in export markets. This

on the ability to develop new branding

with distributor partners, retail chains, and independent butcher shops and

BFO ANNUAL REPORT 2021

27

ONTARIO BEEF MARKET DEVELOPMENT PROGRAM

CONTINUED

restaurants across the province. Many of

beef industry is well positioned to meet

the activities reinforced the commitments

this increasing market demand. Our retail

of our brand partners and enhanced

and foodservice partners have also been

awareness in the market.

very clear in their desire to source certified and sustainable beef in Ontario.

Enhancing value of Ontario beef through quality assurance

CRSB certification is an excellent way

already successful quality assurance

for Ontario farmers to share their

program,” said Anne Wasko, Chair of

sustainability story. Consumers are

CRSB. “Incorporating the option of CRSB

The Ontario Beef Market Development

increasingly interested in how their food

certification is a win-win for Ontario’s beef

strategy also prioritizes creating value

is produced, and they are seeking more

industry with a single streamlined audit

for producers in Ontario-specific quality

information than ever before about the

process, which will help meet consumer

assurance programming, which enhances

practices used to raise beef in Canada.

demand for sustainably raised beef.”

our ability to differentiate Ontario beef

From land and water stewardship to

and enables Ontario producers to capture

supporting local communities, and from

market opportunities from on-farm quality

animal care to innovations that improve

assurance programs.

efficiency and productivity, certification

A significant outcome of this objective

provides producers with recognition for the

“Local beef raised under a quality assurance program was identified through our public research as an important purchasing driver for consumers, so

sustainable practices they already employ.

having a made-in-Ontario program that is

Quality Assurance Program becoming an

As a result of the approval of Ontario Corn

members and consumers well,” shared

approved certifying body for the Canadian

Fed Beef Quality Assurance Program as

Richard Horne, BFO’s Executive Director.

Roundtable for Sustainable Beef (CRSB). To

a CRSB certifying body, Ontario’s feedlot

obtain approval, the Ontario Corn Fed Beef

sector and the bulk of finished animals in

Quality Assurance Program was thoroughly

the province will be well positioned to take

reviewed and assessed by the CRSB and

advantage of sustainable beef programming.

resulted in the Ontario Corn Fed Beef

the oversight body, NSF International.

also recognized nationally will serve our

MARKET INDICATORS Market indicators are data points or

It is anticipated that the market will see

tangible outcomes that indicate progress

This approval is an important milestone for

an increase in demand from the feedlot

towards the overall performance measures.

our industry because the market demand

sector for VBP+-certified calves in the

They are reported annually.

for beef raised according to sustainability

cow-calf sector, especially from those who

standards, as set by CRSB, continues to

are interested in participating in Cargill’s

increase. At this time, demand exceeds

Certified Sustainable Program.

the available supply. And with the recent certification of the Cargill Guelph facility to process cattle originating from CRSBcertified farms and ranches, the Ontario

offering this element within their

28

BFO ANNUAL REPORT 2021

“We are pleased with Ontario Corn Feed Beef’s commitment to supporting their producers in demonstrating sustainable practices in Ontario feedlot operations by

Ontario Federal & Provincial Cattle Processing 2020 slaughter volumes were affected by coronavirus interruptions, and also by the closure of a federal plant in 2019 (Ryding

Source: BFO

Industry Perceptions Surveys Surveys of industry partners provide perspective on the value of support programs provided. Surveys are an industry standard of measurement to provide insight into return on producer investment and assess perceived value of project-related services among industry partners, including Regency). Ontario slaughter volumes were showing strong growth from 2016 to 2019. An effective Ontario Beef Market Development Program will contribute to increasing slaughter volumes and more demand for Ontario fed cattle.

value is driven by export markets.

Export volume of Ontario beef to Japan has increased to a projected 10,500,000 kg in 2020 from 3,739,313 kg in 2016. This is an increase of 181 per cent.

At the same time, increased to a projected

Federal/Provincial Share of Total Slaughter Share of federally and provincially inspected slaughter has remained consistent prior to 2020. Provincial share increased in 2020, with significant impacts

$77,000,000 in 2020 from $24,006,036, which is an increase of 221 per cent.

Ontario beef marketing efforts in Japan began in 2015 with Ontario Corn Fed Beef.

Kg Volume Ontario Beef Exports to Japan

to federal slaughter related to coronavirus

Provincial

2017

88%

12%

2018

89%

11%

2019

88%

12%

2020

85%

15%

Ontario Beef Exports to Japan

ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN ONTARIO 86% Completely Agree 14% Somewhat Agree 10 respondents

ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN EXPORT MARKETS 100% Completely Agree 5 respondents

ONTARIO BEEF MARKET DEVELOPMENT SUPPORT HAS INCREASED OUR ABILITY TO GROW SALES IN JAPAN 100% Completely Agree

and loss of a federal plant in 2019.

Federal

packers, exporters, retailers and distributors.

12 respondents

$ Value Ontario Beef Exports to Japan

Due to market closures in several high-priority export markets related to coronavirus, Ontario beef export initiatives in 2020 were focused on Japan.

It’s important to note that the value of export markets is that they provide significant opportunities to increase the overall value of Ontario beef carcasses.

Source: AAFC

Canfax Research Services estimates that over $600 or 38 per cent of a fed carcass

BFO ANNUAL REPORT 2021

29

ONTARIO BEEF MARKET DEVELOPMENT PROGRAM

CONTINUED

PROJECT EXPENSES Revenue amount of $1,100,000 for the

The Ontario Beef Market Development

party assessment of results generated

2020 strategy was based on BFO check-

strategy will be evaluated annually

against the performance measures will

off projections. The Ontario Beef Market

for return on check-off investment,

be provided to determine return on

Development Program is funded by

including project deliverables, expenses

investment of the $1.25 per head of

$1.25 of producer check-off investment in

and market indicators. There will be a

Ontario check-off funding allocated to the

Ontario.

comprehensive review of all performance

program.

measures at the end of 2023.

Actual expenses for 2020 totaled $678,203.45.

Expenses include marketing and promotions, program implementation, project management/contracted services, market intelligence/data services, and

Activity

30

measures at the end of 2023, a decision

designed to measure key factors that

will be made to continue with the strategy,

affect the competitiveness and long-term

make revisions to the strategy, or cancel

viability of the Ontario cattle industry.

the strategy and reallocate the funding to

As per the agreement between BFO

other marketing initiatives.

and OCFA, a comprehensive third-

administration.

Program Expense

2020

2020

Budget YTD

Expenses

Domestic Market Development

$ 175,000.00

$ 68,102.13

Global Market Development

$ 175,000.00

$ 43,237.26

Regional Brand Programs

$ 20,000.00

$

Quality Assurance Program

$ 50,000.00

$ 49,432.25

Promotional Materials

$ 40,000.00

$ 8,711.35

Trade Missions

$ 35,000.00

$ 1,805.72

Travel

$ 50,000.00

$ 10,507.36

Total Program Expense

$ 545,000.00

$ 181,796.07

Total Overhead Expense

$ 555,000.00

$ 496,407.38

Total Expense

$ 1,100,000.00

$ 678,203.45

BFO ANNUAL REPORT 2021

After the analysis of the performance

Performance measures listed below are

-

Our vision is to have Ontario beef recognized and valued by our industry partners and consumers around the world.

2020-2023 PERFORMANCE MEASURES Expected Outcomes of Activities Increased values for Ontario cattle

Indicators of Success

Performance Measures/Source

Impact on Ontario/regional fed & calf

Independent assessment of cattle market

prices

impact

Increased share of Ontario-branded beef in

# of new brands developed

Market scan

domestic & export markets

Impact of activities to support existing

Market survey

brands Ontario Beef export volume & value

Ontario share of Ontario consumption

Independent assessment of cattle market impact

Volume & value of Ontario Beef exports

Stats Can data

Ontario share of Canadian beef exports in

Independent assessment of export data

target markets Increased market penetration of Ontario

# of branded products introduced into

Market scan

beef value-added products

market

Independent assessment of cattle market impact

Recognized value for Ontario Beef

Harmonization of Ontario QA program(s)

Assessment of Ontario QA program(s)

quality assurance (QA) program(s)

in Ontario

Value created by QA program(s)

QA requirements by industry # of cattle qualified for QA certification # of cattle in Ontario certified as CRSB Growth in Ontario beef processing

Ontario slaughter volumes

industry Increased Ontario slaughter cattle

Independent assessment of cattle market impact

Slaughter cattle population

volumes

Independent assessment of cattle market impact

Growth in the Ontario Corn Fed Beef

# of program cattle

Independent assessment of cattle market

program

Value of fed cattle market

impact

Growth in the Ontario cow herd

# of Ontario cows

BFO/Canfax data

Our mission is to create an environment where Ontario beef farmers are profitable and sustainable for future generations.

BFO ANNUAL REPORT 2021

31

COMMITTEE REPORTS BFO Cow-Calf Committee Submitted by Steve Thede, Chair

“Remote sensing applications to ensure

The BFO Cow-Calf Committee met during

project, also known as the pasture-

day two of the AGM in February, 2020

satellite project and committee members

to review the terms of reference for the

were asked to consider granting the

committee and to elect the committee chair

research team access to capturing

and vice-chair. Steve Thede, representing

satellite images of their pastures.

the backgrounder sector on the committee, was elected chair and Jason Hurst was

individual farm forage production”

• T he committee agreed to reviewing the

elected as vice-chair for 2020-2021.

Heifer Holdback Program and provide

There was a joint meeting of the Cow-Calf

working group.

Committee and Feedlot Committees in May and then the Cow-Calf Committee met again in June. These meetings took place virtually

recommendations to the national

• T he committee reviewed the Profitability to the board the simplified version of the

A summary of committee actions and

be uploaded to the BFO website.

your review below.

• C ommittee members shared experiences

profitability calculator be used and that it

• A Cow-Calf Management School Trial Webinar was discussed and the committee asked that Steven Kenyon be

on how COVID-19 is affecting their

pursued to participate in a trial webinar

operations as it relates to processing,

on an evening in the fall.

buying/selling and marketing; feed availability and rations; and financial impact.

• C ommittee members provided feedback on a proposal from BFO staff on a nonvoting youth delegate at BFO’s annual general meeting, which is a concept that has been discussed by both committees at a previous meeting.

• T he committee provided feedback on the 2020-2024 National Beef Strategy priorities and goals, in collaboration with the Feedlot Committee.

32

BFO ANNUAL REPORT 2021

2020 Cow-Calf Committee Steve Thede CHAIR Jason Hurst VICE CHAIR

Kirby Hakkesteegt Don Hargrave Kevin Krakar

Don Badour

Nickolas Martin

Brent Cadeau

Jason Reid

Joe Dickenson FEEDLOT REP

Lyndon Wagenaar

Calculator and made a recommendation

via Zoom due to COVID-19 restrictions.

recommendations has been provided for

• B FO confirmed participation in the

• T he committee agreed with forgoing

BFO Feedlot Committee Submitted by Scott Cochrane, Chair The BFO Feedlot Committee has met twice since the 2020 AGM last February.

In addition, some members of the Feedlot Committee were involved in the Set-Aside Program Advisory Committee and the SubCommittee on Fed Cattle Price Reporting.

hosting the Beef Youth Development

Feedlot Committee members also took

Program until summer 2021.

part in BFO’s weekly/bi-weekly COVID-19

• An update from the lead researcher on the Biodegradable Bail Wrap Project was requested for the next committee meeting.

The 2020-21 Cow-Calf Committee is grateful for the support of BFO Board of Directors and staff and the opportunity to

beef industry update calls that occurred throughout 2020.

A summary of committee actions and recommendations has been provided for your review: • Provided feedback and

meet to discuss topics that are important to

recommendations on the development of

Ontario’s cow-calf sector.

the Ontario Beef Set-Aside Program

• Struck a sub-committee to assist with and help guide the transition of BFO’s Fed Cattle Price Reporting Pilot with Canfax into a permanent program • Provided feedback on the 2020-2024 National Beef Strategy priorities and goals, in collaboration with the BFO CowCalf Committee • Provided feedback and comments on Ontario Risk Management Program redesign discussions, in collaboration with the BFO Cow-Calf Committee In closing, I want to thank my fellow committee members for committing their time and energy to the Feedlot Committee this year, and to the BFO staff who supported the committee’s business.

2020 Feedlot Committee Scott Cochrane CHAIR

Jason Hurst COW-CALF REP

Steve Eby VICE CHAIR

Scot Legge

Jack Chaffe Joe Dickenson Chris Freiburger

Jarius Maus David Millsap Darrell Russett Matt Shortreed

BFO ANNUAL REPORT 2021

33

ONTARIO BEEF BREEDER CO-OPERATIVE PROGRAM The eight Breeder Loan Program co-ops across Ontario have

also increased. Some members need to be continually reminded of

continued to operate over the last year with a typical business

their obligations to their co-op.

pattern as experienced in the past. Unfortunately, only two co-ops experienced growth from June 2019 to June 2020. The largest co-op continues to grow and has about 40 per cent of the provincial activity.

What doesn’t fluctuate much is the average number of females financed per member. This continues to hover around 29 head. It ranges between co-ops from 21 to 39.

partners are supportive of the cow business and work with the coops based on regional needs.

As we head into 2021, we appreciate that some parts of the province have better and more ample feed supplies. As well, winter weather has been less harsh so far, depending on where you live.

The average amount owing per active member has increased to

The bottom line is there should be some great calf crops arriving

over $33,000. Unfortunately, the number of overdue loans has

this spring.

The Beef Breeder Co-op Program is administered by the Beef Farmers of Ontario.

PROVINCIAL SUPERVISOR: Cheryl Russwurm 519.367.5590 EMAIL: crfeederfin@wightman.ca

The co-ops continue to be financed by either CIBC or FCC. Both

34

BFO ANNUAL REPORT 2021

BRUCE-GREY BEEF COW FINANCE CO-OP Theresa Cameron (Grey/Bruce) 519.507.9894

EAST BEEF BREEDER CO-OP Denise Cassidy (Leeds to Victoria County) 613.478.5226

HURON-PERTH-MIDDLESEX BEEF BREEDERS CO-OP Janice Hawkins-Wylie (Huron/Perth/Middlesex) 519.887.8899

OTTAWA VALLEY BREEDER CO-OP Jim Cochran (Carleton/Lanark/Renfrew) 613.256.3835

RAINY RIVER BEEF BREEDER CO-OP Joyous Bragg (Rainy River, Thunder Bay, Dryden and Kenora) 807.482.3948/2498

SOUTH QUEENS BREEDER FINANCE CO-OP Rick Lekx (South Bruce, South Grey, North Huron, Wellington) 519.881.4523

SOUTHWEST BEEF BREEDERS CO-OP Alex Gray (Lambton/Essex/Kent and east to Norwich area) 226.378.1731

TEMISKAMING/COCHRANE BEEF BREEDER CO-OP Mike Rheaume (Northeastern Ontario and Manitoulin Island)

PROGRAM STATISTICS YEAR as of June 30th

705.648.4536

2020

2019

2018

2017

2016

Number of members

374

403

396

382

346

Number of active members

362

365

359

350

317

10,380

10,656

10,019

9,387

9,069

$12.1

$12.6

$13.4

$12.9

$12.9

Average # of females per active member

29

29

28

27

29

# of new members in first 6 months of year

19

26

29

26

36

1,212

1,136

1,346

1,312

1,300

Total cow inventory Total principal outstanding (million)

# of females purchased in first 6 months

BFO ANNUAL REPORT 2021

35

ONTARIO FEEDER CATTLE LOAN GUARANTEE PROGRAM 2020 started off with the Ontario Feeder

annual meeting on March 11th, 2021. Many co-

Members continued to operate and

Cattle Loan Guarantee Program on a good

ops are using Zoom videoconferencing for

adapt, and we have seen little change

solid foundation. Requested updates

director meetings after the colder weather

in activity. Like everyone else, the

and revisions were in place, the BFO

sent them indoors. We have also focused

temporary shutdown of Cargill started a

Feeder Finance Executive Committee was

on producing the option of using paperless

lot of conversations on “what-if” scenarios

functioning well, and the Co-op Act had

forms for the program.

regarding how members might be affected.

been modernized as well.

The program hit a milestone in November,

The Advance Payments Program, which

It was business as usual, except we still

with 30 years passed since the first Order

is offered by BFO via the feeder finance

had a slight disruption from the decreased

in Council was signed. Members have

co-ops, had a decrease in participants,

processing capacity the industry had

purchased over 2.2 million head since the

to about 275 in 2020. Prime dropped

experienced in September 2019.

beginning, when six co-ops bought 13,000

to 2.45% in March, so we have seen

head in a year. It is estimated that over $1.78

the average interest paid on behalf of

billion worth of loans has been advanced.

participating members decrease by $700

With the onset of the pandemic, we all tended to pause for a couple of weeks, and

to about $1,550.

then started a journey of adaptation. And we

The program is up for a five-year review

are still adapting. We will have our first virtual

in 2021, and the executive has several

For a listing of feeder finance co-ops and

proposed changes and clarifications they

administrator contact information, visit

would like OMAFRA to address.

“Programs” at www.ontariobeef.com.

PROGRAM STATISTICS 2020

2019

2018

2017

2016

Number of Co-ops:

16

16

16

16

17

Total Membership:

795

802

804

806

844

During Year

724

749

757

730

794

As of December 31

600

599

611

622

652

Under Age 40:

256

244

270

292

317

Purchased in Year

96,529

92,748

95,265

97,466

91,631

Sold in Year

92,482

93,363

94,434

95,056

86,872

On Hand, December 31:

75,013

70,891

71,337

70,998

68,834

$102.5M

$95.3M

$97.7M

$98.3M

$88.0M

Total Amount Committed, December 31:

$106.1M

$98.6M

$101.4M

$105.1M

$94.5M

Total Loans Advanced During Year

$134.5M

$125.7M

$136.3M

$126.8 M

$155.9M

Active Members:

Number of Cattle

Financial Outstanding Loans, December 31:

36

BFO ANNUAL REPORT 2021

MARKET STATISTICS Four Convenient Ways to Access Market Information from the BFO Office Website www.ontariobeef.com

Email

markets@ontariobeef.com

Phone TF: 866.370.2333 Local: 519.824.0334 Ext. 300 - Daily Report Ext. 301 - Noon Report

Fax

519.824.9101

BFO ANNUAL REPORT 2021

37

Replacement Steers 1,000 lb + Ontario Average Monthly Price

Replacement Steers 1000 lbs +

Price per hundred weight

Ontario Average Monthly Price 2018

195.00

2019

2020

5 year Avg 2015-2019

185.00 175.00 165.00

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

155.00

Replacement Steers 500-599 lb Ontario Average Monthly Price lbs Replacement Steers 500-599 2018

Ontario Average Monthly Price 2019

2020

5 year Avg 2015-2019

Price per hundred weight

235.00 225.00 215.00 205.00

38

BFO ANNUAL REPORT 2021

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

195.00

Replacement Steers Ontario Average Monthly Price Per Hundred ReplacementWeight Steers

Ont Average Monthly Price per Hundred Weight Over 1000 lb.

Month

500 – 600 lb.

2020

2019

2018

2020

2019

2018

January

176.07

178.78

178.49

222.26

210.05

215.05

February

175.88

172.95

178.90

225.67

205.67

223.80

March

162.00

166.72

167.54

212.05

198.88

218.68

April

155.06

164.17

158.42

215.54

220.72

207.01

May

168.60

163.87

157.14

230.62

216.34

210.51

June

166.06

157.66

157.97

234.73

207.46

213.80

July

167.96

163.88

161.46

220.65

198.66

212.20

August

175.94

175.46

173.70

221.54

207.49

213.37

September

176.54

170.83

182.32

224.35

206.36

221.07

October

178.67

170.62

185.44

217.07

209.01

219.50

November

171.31

178.06

177.19

217.51

209.84

203.88

December

169.07

173.79

180.71

208.85

216.02

209.92

Stocker Volume Sold Stocker Volume Sold Through Ontario Auction Markets Through Ontario Auction Markets 260,000

255,000

250,000

Number of head

245,000

240,000

235,000

230,000

225,000

220,000 Stockers

2016

2017

2018

2019

2020

248,379

251,185

243,835

258,755

244,940

BFO ANNUAL REPORT 2021

39

Ontario Auction Markets Large and Medium Frame Fed Steers Ontario Auction Markets lbFed + Steers 1250 lbs + Large and Medium1,250 Frame Ontario Average Price - Per Hundred Weight Average Weekly Weekly Price Per Hundred Weight Week #

2020

2019

2018

137.13

142.77

149.27

139.71

140.02

147.18

143.12

137.90

134.36

143.82

141.99

136.55

143.43

142.52

141.66

138.85

147.32

144.74

138.93

146.23

146.24

139.96

144.15

149.36

143.84

139.67

147.57

143.58

133.34

149.14

135.87

131.97

151.20

135.68

123.68

147.94

138.46

139.01

146.19

136.72

140.77

143.78

138.13

148.51

139.21

139.04

147.38

141.79

137.76

142.85

142.54

139.35

151.25

147.05

139.44

149.07

152.00

140.60

150.41

143.72

151.73

140.16

143.23

161.53

143.91

141.98

159.22

144.94

143.93

159.85

143.55

146.97

25

154.63

144.19

146.43

26

137.72

144.23

141.45

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

40

BFO ANNUAL REPORT 2021

Week #

2020

2019

2018

130.90

141.91

138.69

145.94

143.20

143.17

146.74

143.23

138.66

141.28

142.88

140.69

139.92

140.85

140.93

144.02

139.50

139.12

143.90

139.93

138.72

144.99

138.96

133.07

142.54

138.18

133.02

141.64

138.39

133.29

138.56

132.24

133.96

137.36

133.42

136.76

138.68

130.37

133.87

137.05

131.66

138.35

138.63

139.02

134.72

132.74

133.46

139.13

135.90

130.60

134.97

135.60

130.84

127.81

134.75

131.47

133.46

136.73

130.10

131.83

137.15

127.28

132.13

134.31

129.98

126.99

135.63

129.99

130.99

126.71

134.50

134.90

51

115.31

137.72

134.59

52

N/T

137.93

131.23

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Beef Cow Volumes On Ontario Farms

Beef Cows On Ontario Farms 290,000 Total number of head

280,000 270,000 260,000 250,000 240,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

220,000

Jan

230,000

2020

Total number of head

Data from Statistics Canada -Cattle Stats

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000

Ontario Annual Processing Volumes Federal and Provincial Inspected Plants Ontario Annual Processing Volumes Federal & Provincial Inspected Plants

2016

2017

2018

2019

2020

Steers

415,070

419,877

427,646

434,563

413,396

Heifers

142,245

136,700

137,563

148,747

134,573

Cows

71,224

100,615

114,469

103,989

92,452

Data Source- Canfax/CBGA

2020 totals are preliminary

BFO ANNUAL REPORT 2021

41

Ontario Railgrade Steers Ontario Average Monthly Price

Ontario Railgrade Steers

280.00 Price per hundred weight

Average Monthly Price

2018

2019

2020

5 year avg- 2015-2019

270.00 260.00 250.00 240.00

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

230.00

Ontario Exports of Beef Products to All Countries Ontario Exports of Beef Products to All Countries 95,000,000

Total Kilograms of Product

90,000,000

85,000,000

80,000,000

75,000,000

70,000,000

65,000,000

60,000,000

55,000,000

United States

2016 Japan

Mexico

2017 Hong Kong

Source: Statistics Canada, Prepared by AAFC/MISB/AID/Redmeat Section

42

BFO ANNUAL REPORT 2021

2018 Korea, South

Peru

2020 - January to November Only.

2019 Viet Nam

2020 (Jan - Nov) Taiwan others

Ontario Railgrade Steers Ontario Packing Plants Average Weekly Price Per Railgrade HundredSteers Weight Ontario Packing Plants

Average Weekly Price per Hundred Weight

Week #

2020

2019

2018

Week #

2020

2019

2018

1

247.00

247.00

256.50

27

220.00

244.00

249.00

2

247.50

N/T

256.00

28

235.00

242.00

249.00

3

251.00

251.75

253.50

29

245.00

242.00

248.00

4

252.50

257.25

252.00

30

242.50

242.00

248.00

5

N/T

N/T

250.75

31

242.50

239.50

246.75

6

254.75

N/T

248.50

32

244.25

238.50

239.00

7

254.00

257.50

248.50

33

245.00

239.50

230.00

8

251.00

257.00

253.00

34

245.00

236.00

230.00

9

247.75

251.50

255.00

35

244.75

235.50

230.00

10

245.00

250.00

255.00

36

240.25

238.00

229.75

11

N/T

250.00

255.00

37

232.00

238.00

229.00

12

235.00

251.75

256.00

38

N/T

233.00

231.00

13

235.00

N/T

254.50

39

N/T

232.25

236.50

14

N/T

N/T

245.50

40

230.00

233.00

238.00

15

239.00

257.50

244.00

41

230.00

233.00

240.00

16

238.00

257.50

244.00

42

231.00

236.00

244.00

17

238.00

258.50

244.00

43

231.25

234.00

244.50

18

238.00

258.50

250.75

44

N/T

234.50

245.00

19

238.00

258.50

254.00

45

228.00

235.50

244.25

20

240.00

258.25

253.25

46

228.00

235.50

244.00

21

261.25

256.00

248.00

47

230.00

235.50

244.00

22

270.00

255.00

246.00

48

232.00

237.00

244.00

23

274.25

252.00

246.00

49

232.00

237.50

244.00

24

N/T

251.25

246.00

50

232.00

238.75

244.50

25

245.00

248.75

248.00

51

232.00

242.00

245.00

26

226.25

247.00

249.00

52

N/T

N/T

N/T

BFO ANNUAL REPORT 2021

43

Ontario/Alberta Fed Steer Price Spread Dressed Basis Ontario/Alberta Fed Steer Price Spread -Dressed Basis

$60.00 $50.00

per hundred pounds

$40.00 $30.00 $20.00 $10.00 $0.00 -$10.00

wk 49

wk 51

wk 49

wk 51

wk 47

wk 45

wk 43

wk 41

wk 39

wk 37

wk 33

5 year Avg- 2015-2019

wk 31

wk 29

wk 27

wk 25

wk 23

wk 21

wk 19

wk 17

wk 15

wk 13

wk 9

wk 11

wk 7

wk 5

wk 3

2020 wk 1

-$30.00

wk 35

-$20.00

Data Source: Canfax/BFO

Ontario/U.S. Fed Steer Price Spread Dressed Basis Ontario/U.S. Fed Steer Price Spread -Dressed Basis

$60.00 $50.00 per hundred pounds

$40.00 $30.00 $20.00 $10.00 $0.00 -$10.00 -$20.00

Data Source: USDA/BFO

44

BFO ANNUAL REPORT 2021

wk 47

wk 45

wk 43

wk 41

wk 39

wk 37

wk 33

wk 31

5 year Avg- 2015-2019 wk 29

wk 27

wk 25

wk 23

wk 21

wk 19

wk 17

wk 15

wk 13

wk 11

wk 9

wk 7

wk 5

wk 3

2020 wk 1

-$40.00

wk 35

-$30.00

Monthly Average Warm Carcass Weight Steers Monthly Average Warm Carcass Weight Steers Ontario

Canada

Month

2020

2019

2018

2020

2019

2018

January

968

972

972

908

936

909

February

964

969

971

909

919

908

March

957

967

968

911

915

909

April

958

964

960

911

907

886

May

940

962

938

909

877

846

June

912

937

914

875

868

844

July

912

913

909

882

881

867

August

922

923

920

908

911

894

September

937

941

935

932

925

922

October

950

951

950

952

932

932

November

956

965

960

953

930

925

December

968

972

971

938

920

929

Data Source: Canfax/CBGA

Monthly Average Warm Carcass Weight Heifers Monthly Average Warm Carcass Weight Heifers Ontario

Canada

Month

2020

2019

2018

2020

2019

2018

January

867

867

854

833

858

830

February

872

873

859

840

847

837

March

868

862

855

853

848

833

April

859

856

858

840

851

826

May

837

854

849

858

821

798

June

825

829

841

821

791

785

July

824

816

810

801

807

798

August

817

813

819

822

828

824

September

825

833

819

847

842

843

October

827

836

829

866

849

847

November

841

848

839

852

849

855

December

852

866

856

855

834

849

Data Source: Canfax/CBGA

BFO ANNUAL REPORT 2021

45

Beef Grade Distribution 2020 CANADA

Quality Grade A Prime AAA AA A B1 B2 B3 B4 Total

Youthful Cattle Beef Grade Distribution 2020 Federally Inspected Plants Percent Yield Group Y1 0.05 3.94 7.02 0.93

Y2 0.56 23.79 14.82 0.51

Y3 1.42 25.41 5.67 0.10

11.95

39.67

32.59

Y4 1.01 8.86 1.14 0.01

Total Y5 0.45 2.48 0.22 0.00

11.02 3.16 No. head graded: 2,619,701

3.49 64.48 28.87 1.56 0.10 0.03 0.20 1.27 100

ONTARIO

Quality Grade A Prime AAA AA A B1 B2 B3 B4 Total

Youthful Cattle Beef Grade Distribution 2020 Federally Inspected Plants Percent Yield Group Total Y1 0.01 0.91 3.45 0.56

Y2 0.49 22.54 13.39 0.16

Y3 1.50 27.07 5.36 0.01

Y4 1.84 14.85 1.31 0.00

4.92

36.58

33.94

17.99 5.02 No. head graded: 489,139

Note: Based on gradings in federally inspected plants.

Y5 1.05 3.80 0.17 0.00

Mature Cattle Grade Distribution 2020 Federally Inspected Plants Percent Ontario Canada D1 14.10 19.26 50.14 60.37 D2 D3 33.56 28.66 2.17 2.89 D4 E 0.04 3.26 63,653 346,354 Total head graded Total head ungraded 18,745 91,056 Note: Canada adopted the US yield grade criteria for youthful cattle in January 2020.

Data Source: CBGA/Graeme Hedley

46

BFO ANNUAL REPORT 2021

4.88 69.17 23.68 0.73 0.00 0.02 0.02 1.41 100

Canadian Live Cattle Live Imports and Exports Canadian Cattle Imports and Exports - U.S.

Imports into Canada

800,000

Exports from Canada

Number of head

700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

2016

2017

2018

2019

2020

Data Source: Agriculture and Agri Food Canada 2020-Imports- Jan 1- Nov 30 2020-Exports Jan 1/20- Jan 2/21

Canadian Beef Imports and Exports Canadian Beef Imports and Export

Total Beef Imports

Beef Imports from US

Beef Imports Non-Nafta

Beef Exports

400,000 350,000

Tonnes

300,000 250,000 200,000 150,000 100,000 50,000 0

2016

2017

2018

Data Source: Agriculture & Agri Food Canada 2020-Imports- Jan 1- Dec 28, 2019 2020-Exports Jan 1- Nov 30, 2020

2019

2020

BFO ANNUAL REPORT 2021

47

48

BFO ANNUAL REPORT 2021

INDUSTRY IN REVIEW Beef Cattle Research Council Canada Beef Canadian Beef Check-off Agency Canadian Cattlemen’s Association Canadian Cattle Identification Agency Farm & Food Care Ontario Livestock Research Innovation Corporation Ontario Cattle Feeders’ Association Ontario Beef Cattle Financial Protection Fund

BFO ANNUAL REPORT 2021

49

BEEF CATTLE RESEARCH COUNCIL Beef Producer National Check-Off Investments in Research

BCRC 5-Year Funding Portfolio As of June 17, 2020 Animal Health & Welfare

The Beef Cattle Research Council (BCRC)

5% 7

%

is Canada’s industry-led funding agency for beef, cattle, and forage research. Its

20%

mandate is to determine research and development priorities for the Canadian beef cattle industry and to administer the Canadian Beef Cattle Check-Off funds allocated to research.

The BCRC is led by a 14-member Council comprised of 13 producers, including Ontario’s

Antimicrobial Use, Resistance & Alternatives Beef Quality

4 9

26

%

7%

16

%

% %

6

%

Environmental Sustainability Feed Grains & Feed Efficiency Food Safety Forage & Grassland Productivity Research Capacity Tech Transfer & Other Technology Transfer

Ron Stevenson and Matt Bowman (current BCRC Chair), and one member at large. The number of members from each province

to assess the impacts of the COVID-19

is proportional to the amount of provincial

pandemic on research at facilities across the

allocation of national check-off to research.

country. The impacts vary greatly across the provinces and depend on factors including

In 2019/20, $3.6 million of national

project requirements, as well as personal

producer check-off funding allocated to

and local pandemic situations. Most of the

research leveraged an additional $5.1

ongoing research projects continued with

million in industry funding from other

minimal interruption. Some of the new

government and industry partners and

projects that were scheduled to start as

initiatives, including the Agriculture and

early as April 2020 were delayed, however

Agri-Food Canada (AAFC) Beef Science

all projects are scheduled to continue. The

Cluster program. Investing the national check-off and government and industry funding in key research priorities identified by stakeholders, the BCRC currently funds 69 projects led by researchers nationwide.

Impacts of COVID-19 on BCRC Activities Since March 2020, the BCRC has worked closely with industry and government

50

BFO ANNUAL REPORT 2021

Dr. Ben Bohrer (Ohio State University) recently completed a project that summarized the nutrient density and nutritional value of beef, pork, lamb, poultry, seafood and plant foods. It shows how costeffectively beef can provide the nutrients that Health Canada reports are lacking in many Canadians’ diets (protein, vitamin B12, iron and zinc), often with fewer calories.

second wave of the pandemic during the fall could result in further delays, although the overall impact is undetermined at time of writing. BCRC continues to work with its funding partners, including AAFC, to evaluate if there will be any program and/or budget implications for 2020/21 or 2021/22, but to date, the impact has been minimal on the research program.

industry magazines, webinars, blog posts, infographics and radio clips.

New Video: How To (and Not To) Resuscitate a Newborn Calf. Find it at beefresearch.ca > Resources > Videos

One of the extension initiatives currently underway is utilizing expertise within the Canadian Beef Technology Transfer Network working in eastern Canada to

One of many resources for beef producers on the BCRC’s website, the “Value of Calving Distribution Tool“ is an interactive calculator that allows producers to see what their current calving distribution is, and what the impact on revenue would be if they move to the industry target of 6025-10-5, or a condensed breeding season of three cycles. Find it at beefresearch.ca > Resources > Decision Making Tools

Specific to the pandemic, BCRC funded

identify information and data gaps in current

COVID-19-related research initiatives,

BeefResearch.ca content to enhance and

including developing technology to

create more resources applicable to eastern

support the remote delivery of inspection

Canadian beef producers. Stakeholder

services at processing facilities, research

working and advisory groups have been

to determine the risk of COVID-19 infection

2023. Planning is currently underway to

established, which include extension

due to changing airflows in processing

determine research and extension priorities

experts and producers representing Ontario,

facilities as COVID-19 physical barriers

for a potential fourth Cluster.

Quebec and the Atlantic provinces. The

are put in place, and economic analysis to

groups are discussing extension gaps in

support the development of eastern cattle price insurance indices. These projects are well underway. BCRC extension programming has continued to operate without interruption since the pandemic hit.

Overall, the impact of COVID-19 on the BCRC budget and operations has been manageable, given the flexibility in allocating

their regions and working to refine and prioritize the identified needs. This will guide collaborative resource development for BeefResearch.ca over the coming years.

Researcher Mentorship The Beef Researcher Mentorship Program,

industry funding across years, the existing

an initiative to facilitate greater engagement

online platforms for resource and program

of upcoming and new applied researchers

management, and the ability of BCRC staff

with Canada’s beef industry, is in its seventh

to work remotely as required. Larger than

year. Six researchers were accepted into the

expected funding deferrals will occur in

program this year to be mentored by both

2020/21 due to delayed project start-ups.

producers and other industry professionals.

All budget and program implications will be

The opportunity deepens researchers’

closely monitored as we head into 2021.

understanding of the needs of the beef industry in practical and meaningful ways.

Producer Resources and Industry Engagement BCRC continues to develop and distribute

This year’s research projects outside of the Science Cluster are proceeding as approved in the spring of 2020. There were some project start-up delays due to COVID-19, as mentioned above, however all projects are proceeding. Projects include research on beef quality, food safety, animal health and welfare, antimicrobial use and resistance, feed efficiency, forage production, as well as environmental sustainability. Information on each project is available on www.beefresearch.ca.

For More Information To learn more about BCRC initiatives and to access our many resources and decisionmaking tools for beef producers, visit our website at www.beefresearch.ca.

Priority Research Projects Continue to Expand BCRC’s Research Program

numerous producer and stakeholder

The 27 research projects funded under

resources, including fact sheets, interactive

the third Beef Science Cluster continue,

decision-making tools, videos, articles for

with most of the projects wrapping up in

BFO ANNUAL REPORT 2021

51

CANADA BEEF pandemic significantly affected Canada

Beef Cattle Research, Market Development

Beef programs as virtually all domestic and

and Promotion Agency, Canada Beef

international activities were affected by social

Canadians cooked at home like never

is the cattle producer-funded and run

distancing protocols on cattle processing,

before and one of the most popular items

organization responsible for domestic

retail and foodservice operations, and the

they cooked was Canadian beef. Interest

and international beef and veal market

ability to export products to markets.

in buying, preparing and serving Canadian beef was at a record high, as were the

development. It has 24 staff in offices in Canada, Japan, China, Taiwan and Mexico.

In addition to National Check-Off and import levy funding, Canada Beef leverages cattle producer dollars with private market partner investments and government industry development funding to maximize the benefits of producer check-off investment.

COVID-19 Trade Outreach

questions coming from consumers. The

Canada Beef worked collaboratively with the

in total users (93 K) and 73% increase in new

national associations representing beef, veal

users of the website in March compared to

and pork. Resources were developed for Canadian consumers and meat professionals in domestic and international markets. The focus was to provide reassurance around

Canada Beef works to build a dynamic,

the safety of meat and our ability to maintain

profitable and competitive Canadian

a stable supply by safeguarding the health

beef and veal industry where Canadian

of Canadians working in the sector. In

high-quality beef and veal products are

addition, Canada Beef’s marketing team

recognized as the most outstanding by

has developed programs to help increase

domestic and international customers.

consumers’ comfort and skills in preparing

These efforts ultimately increase demand

Canadian beef at home.

for Canadian beef and the value producers receive for their cattle.

COVID-19 Impact and Response The COVID-19 pandemic had an enormous worldwide impact on agriculture and agrifood businesses. The rapid emergence of the pandemic affected global supply chains

A fact sheet outlining the measures taken by the Canadian meat industry to protect against COVID-19 was produced in eight languages. It was distributed, along with a cover letter signed by seven association leaders, to meat professionals in Canada, Mexico, China, Hong Kong, Macau, Philippines, Singapore, Vietnam, Indonesia,

Canadabeef.ca website saw a 66% increase

the same time last year. The ThinkBeef.ca website saw a 450% lift in monthly visits – up by 13,000 visits comparing traffic in February to March (to March 23).

Two scheduled consumer marketing campaigns scheduled for March 2020 shifted focus to meet consumer needs.

Restaurant options are limited. We know consumers have stocked up on beef from the grocery store and while they’re in their kitchens ready to cook, many aren’t sure where to start—they need help in the way of recipes, serving suggestions and cooking instructions. Content shifted to focus on culinary topics, with recipe inspiration to shake up mundane meal routines, and how-to information to enable consumers to brush up on their beef-centric food skills.

South Korea, and Japan.

Domestic Market Development

world’s population. Packing plant closures

A double-page fact sheet was created for

Total beef consumption in 2020 is projected

and slowdowns challenged North American

consumers with clear, easy-to-understand

to be up 3%, with 78% of beef consumed in

delivery systems to keep domestic shelves

information on COVID-19—what it is, how

Canada sourced from domestic production,

stocked and meet export market demand.

to prevent it, the assurance that domestic

down from 81% in 2019. Wholesale demand

Canadian consumers experienced a sense

livestock and meat are not affected, as well

has been relatively steady since 2016,

of uncertainty, which resulted in stockpiling

as food safety tips. The factsheet is available

ranging narrowly between 85.2 and 87.6. In

meat and other essential supplies. The

at canadabeef.ca (both English and French).

2020, wholesale beef demand is projected

and the normal daily routines of much of the

COVID-19 Consumer Outreach

As the marketing division of the Canadian

52

BFO ANNUAL REPORT 2021

to be up 12%, with several demand and

subscribers covering topics that are both

engaging and entertaining, the videos

supply shocks resulting in volatile prices

culinary and brand focused. The Roundup

meet the needs of four distinct Canadian

and strong retail demand as the market was

App is a mobile beef buying and cooking

beef-user audiences, from aspiring home

shaken by COVID-19.

app, designed to help consumers have

chefs and butchers to seasoned veterans in

better success with beef when they cook

culinary and meat cutting industries.

Expand Programs with Retail and Foodservice Partners

at home. Closely related to consumer

By focusing on brand partners with large

Canada beef continues to partner with

volumes and influence (such as Sobeys, Costco, Loblaw, Walmart, Federated Coop, Tim Hortons, Swiss Chalet, Montana’s, Subway and Sysco), Canada Beef can ensure these partners are well-versed in

marketing are efforts to build the beef industry’s social license with the public.

Protect and Grow Canadian Beef in Export Markets

the CCA and other beef industry groups

Canada Beef’s work in export markets is

to address public and consumer concerns

creating opportunities for the Canadian

about beef production, while also building/

beef industry to realize greater value for

reinforcing the Canadian beef brand.

the carcass than could be realized in the domestic market alone. As well as offering competitive bids on middle meats, the

of the Canadian Beef brand.

Generic Beef Marketing Funded by the Import Levy

This year, Canada Beef introduced a

The import levy (collected on beef

here at home. These export markets have

new domestic trade-marketing program

imports at the equivalent rate of $1 per

called the Domestic Market Development

head) continues to provide funding for

Program. The program provides cost-shared

positive beef messaging across Canada.

funding support for eligible Canadian Beef

With consumers’ diminishing food skills,

representative company-initiated projects

concerns over healthy diets, and public

and activities in five broad based categories

trust issues, Canada Beef developed

essential for facilitating export market growth.

targeted initiatives to positively influence

It is a 50/50% cost-shared funding for eligible

consumer preference for beef over other

stakeholder-initiated for generic, branded

proteins. Visit www.thinkbeef.ca for access

and co-branded projects in Canada.

to marketing resources generated from

Canadian beef and can leverage the value

import levy funding.

Consumer Marketing and Public Trust

export markets can deliver better returns for end meats, credit/thin meats and offal than been affected by the COVID-19 pandemic similar ways to the domestic market.

Canada Beef introduced a new export program this year called the Canada Beef Export Market Development Program that provides cost-shared funding support for eligible Canadian Beef representative company-initiated projects and activities in five broad based categories essential for facilitating export market growth.

The program features 50/50% cost-shared

Canadian Beef Centre of Excellence

funding for eligible stakeholder-initiated

engage and connect with consumers and

The Canadian Beef Centre of Excellence

for 75/25% cost-shared when stacked on

producers to build brand loyalty. With over

(CBCE) is a teaching/training demo theatre

68,000 followers and 25 million impressions,

featuring fabrication room, commercial

Canada Beef continues to successfully

and home kitchen, boardroom and dining

build relationships and drive demand. At

room, world-class equipment, and HACCP

Canadabeef.ca website, consumers and

standards. The CBCE team embraced the

producers can source information regarding

need for digital training resources and

recipes, beef know-how, beef campaigns,

increased distance learning opportunities.

fact sheets and events in both English

The team created educational video

and French. The Make it Beef monthly

resources for Canada Beef’s new trade

e-newsletter is deployed to almost 40,000

website, www.cdnbeefperforms.ca. Quick,

Canada Beef’s social and digital spaces

projects outside of Canada with a potential provincial government grants.

There are five eligible categories.

Canadian beef exports from January to November 2020 were down 4.6% in volume and up 0.2% in value. These are down from the 2019 record-high values and near record-high volumes. Overall, Canadian beef export demand is projected to be up 3.4% from 2019.

BFO ANNUAL REPORT 2021

53

CANADIAN BEEF CHECK-OFF AGENCY As the Chair of the Canadian Beef Check-

need to make a measurable difference to

association partners on check-off collection

off Agency this past year, I have witnessed

the industry, and help our beef and veal

and remittance training, to help us all work

our organization hit its full stride and take

producers see valuable returns.

together to increase compliance, reduce

hold of the matters important to producers.

It is our job to oversee the check-off administration and investments on behalf

expenses totaled $718,870, which included

slippage, and have a consistent level of base knowledge across the country.

both our Agency Board of Directors and the

The Agency took a more strategic approach

Marketing Committee. It is up to our Agency

to import levy collections, and has been

Board to ensure the dollars are invested

able to hold the amount of uncollectable

into programs and strategies that will make

levies to approximately five per cent of total

In 2019/20, the Canadian Beef Cattle

a difference today, tomorrow and down the

import levy receivables. This has been a

Check-Off amount invested into national

road. This includes our own administration

monumental task for the Agency, reviewing

programs was $17,906,566 from cattle

and programming expenses, too.

over 200 invoices per month and dedicating

of Canadian beef producers, and I can confidently say that I am proud of what these investments continue to accomplish.

marketed across Canada.

We spent time on some of our regulatory

special attention to hundreds of companies to ensure timely payments and help them

Of the total check-off funds collected (net

framework this year, reviewing the

administration), 49 per cent was allocated to

Proclamation under which we operate.

market development and promotion, 34 per

We worked with our provincial partners to

The Agency’s website traffic grew through

cent to research, 12 per cent was retained

ensure the framework continued to allow

the year, with a total of 5,333 unique

by the provincial cattle organizations for

us the freedom to provide the best possible

users visiting the site. The site, along

regional marketing and research programs,

value for Canadian beef and veal producers.

with the Agency’s social media channels,

and five per cent was allocated to Public and

understand the ins and outs of the levy.

increased reach to producers in new The Agency was pleased to enter into

audiences, focusing on young producers.

agreements with the Veal Farmers of Ontario.

Our audience grew on all channels, and we

The import levy on beef cattle, beef and

The agreements strengthen Canadian veal

continue to try and communicate effectively

beef products imported into Canada

marketing as a part of the larger Canadian

with you – our most important stakeholders

was collected at a rate of $1 per head

veal marketing initiative, while adding an

– in as many ways as we can.

equivalent, for a total of $1,100,342. These

additional levy collector to the provincial

funds (net administration) are allocated

cattle associations across the country.

The Agency’s Board was committed to

We also targeted compliance on check-

strong policies to govern the Agency.

off and import levy collections this

The strengthened policy manual and

Stakeholder Engagement.

to unbranded, generic beef marketing, such as nutrition marketing, recipe development and culinary skills education.

The Agency’s operations and administration

transparent governance and developing

year. The federal levy on interprovincial

the work done on succession planning

With a record amount of check-off being

marketings was targeted for inspections

and business continuity this year will

collected this year, I know that we have

on auction markets and dealers, with the

help guide the Agency now and as

an important job to do. The check-off

focus on education and understanding

the industry grows and transforms. By

investments made to research, marketing,

levy remittances. Another component of

working with the board members who

and public and stakeholder engagement

that was working with all our provincial

have the interest and skills to grow their

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BFO ANNUAL REPORT 2021

leadership roles at the Agency, the

administration, and clear lines of

And while things might look different for

board is able to plan for the future and

governance and communication.

the foreseeable future in so many ways,

ensure a sustainable leadership model.

The year of 2020 brought some incredibly

rest assured that we continue to focus on the best interests of our Canadian beef and

We were able to have our Marketing

difficult times for our industry, and I know

Committee fully functional for its second

that there have been many sleepless

year. The group is incredibly dedicated

nights and difficult conversations by

To all of you who represent our industry:

and producers can rest assured that this

producers and industry partners alike

thank you. Thank you for continuing to

committee has their best interests at

about the future of our industry. In light

provide food to Canadians and the world,

heart. The Committee operated at arm’s

of that, I want to assure you that our

length from the Agency while guiding

Agency, and all those who invest check-off

the strategic direction of Canada Beef, the organization investing check-off dollars into market development and promotion. The Committee ensured

dollars on your behalf, have been working

veal producers every single day.

and for being dedicated to what you do.

It is your dedication and passion for our industry that makes this job so rewarding.

incredibly hard to do what’s right for the

Chad Ross

Canadian beef industry.

Chair, Canadian Beef Check-Off Agency

continued separation from the Agency

BFO ANNUAL REPORT 2021

55

CANADIAN CATTLEMEN’S ASSOCIATION As I look back on 2020, it seems fitting to

division. The inclusion of the seedstock

of October when we were only one per cent

reflect on the challenges and opportunities

sector will strengthen our collective efforts

below 2019 export values.

coming out of the Canadian beef industry’s

and create opportunities that will benefit

experience navigating the uncertainty

the entire beef industry for years to come.

created by the COVID-19 pandemic. The Canadian Cattlemen’s Association (CCA) took a collaborative approach to our response efforts and our industry quickly mobilized.

We immediately initiated several crossorganizational teams, which included industry leaders, provincial cattle organizations, policy professionals, industry stakeholders, the scientific community, and media. Our focus was on maintaining business continuity – keeping our borders open to trade, ensuring inspection services remained available, ensuring clear and timely communication, and sharing best practices based on public health recommendations to support important industry activities.

2020 was an active year for CCA. Significant progress was accomplished on

Our trade priorities continue to focus on

the Comprehensive and Progressive

maintaining and growing our beef exports.

Agreement for Trans-Pacific Partnership.

Implementation of new trade agreements over the last number of years has allowed Canadian beef producers access to new markets and opportunities. This year was anticipated to be positive, thanks to recently negotiated access through various trade agreements and regained technical

to support beef producers during the

cent in value over 2018. However, COVID-19

pandemic. Following the federal government’s

brought forward unforeseen challenges

announcement of an initial investment in the

that tested the capacity of Canadian beef

agriculture sector in May, CCA continued to

processors and inevitably affected our

meet with Parliamentarians regarding the

ability to supply our export markets.

cattle, and investment in resiliency within the packing industry, as well as economics, specifically related to international trade. Many of the recently announced, recommended BRM enhancements by the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, are directly aligned to the requests made by CCA. In 2020, we welcomed the Canadian Beef Breeds Council as a new operating

56

BFO ANNUAL REPORT 2021

pleased that our access into world markets

Mexico Agreement, the Comprehensive

exports increasing by just under 20 per

programs set-aside for the backlog of fed

optimization of current agreements. CCA is

Trade

Government of Canada recommendations

business risk management (BRM) programs,

removal of technical trade barriers, and the

has improved in recent years thanks to new

access that resulted in 2019 Canadian beef

and discussions focused on changes to

the continued expansion of free trade,

key files. Here are a few highlights:

CCA also developed and submitted to the

impacts of COVID-19. Our recommendations

In addition to pandemic-related efforts,

CCA continues to strongly encourage

trade agreements, such as the Canada-U.S.Economic and Trade Agreement, and

Of particular importance this year is advancing reciprocal access through a Canada-U.K. trade relationship. In December 2020, the Government of Canada announced the continuity agreement to transition between the Comprehensive Economic and Trade Agreement and a future Canada-U.K. free trade agreement. CCA recognized the Government of Canada’s efforts to maintain uninterrupted market access into the U.K. by pursuing an interim agreement. However, CCA’s highest priority is on achieving a long-term free trade agreement with the U.K. that resolves trade barriers that continue to

Here at home, our processing plants

exist within the current CETA agreement.

especially were faced with unprecedented

CCA was pleased to see a commitment by

challenges and they adapted as quickly

both countries’ governments to return to

as possible to implement new practices

negotiating a full free trade agreement within

and innovations to mitigate the spread of

a year, and encourages both governments to

the virus while maintaining worker health

do so as soon as possible.

and safety. The numerous measures taken helped to maintain this essential service and provide a stable supply of food to Canadians and customers around the world. Despite

Humane Transportation Regulations for Livestock

these extraordinary efforts, trade did suffer

Changes to livestock transportation

in the first half of the year with beef exports

regulations brought in by the Government

falling 8.3 per cent in value from 2019 (as of

of Canada remains a key issue for Canadian

May 2020), but largely recovered by the end

beef cattle producers. The proposed changes

saw feed, water and rest intervals for cattle drop from 48 hours to 36 hours, and rest stop durations increase from five to eight hours.

Additionally, there are a number of new recordkeeping components and definition updates for unfit and compromised cattle.

The new regulations for the humane transport of livestock came into force on February 20, 2020, with a two-year transition period on the enforcement of feed, water and rest interval provisions for the cattle sector. This will allow time for education, awareness-building, and development of rest stop infrastructure.

CCA continues to work with government to develop solutions to outstanding challenges with the regulations and ensure that changes will contribute to demonstrable improvements in cattle welfare and not negatively affect the beef cattle transportation success rate of over 99 per cent.

FMD Vaccine Bank

Environment

CFIA modelling has shown that a Foot

The challenges of COVID-19 have had their

and Mouth Disease (FMD) outbreak in

impact on environmental policy issues. Our

highly populated livestock regions would

target remains firm, which is to enhance

represent one of the worst-case scenarios

opportunities to partner on policy, especially

for Canada and require between 1.9 million

environmental policy solutions we can

and 2.7 million doses of FMD vaccine.

crystalize with the federal government. We are

We currently have a significant shortfall

also focused on communicating the positive

in available emergency vaccine, and the

environmental impact beef production has

14-week timeframe to produce a vaccine

on soil health, carbon sequestration, and

represents a significant risk to the livestock

biodiversity on our grasslands across Canada.

industry and the Canadian economy.

We have a wonderful story to tell, and we

Given the known catastrophic devastation risk of an FMD outbreak in Canada (estimated at over $50 billion to the GDP), CCA has lobbied the Government of Canada to establish a Canadian FMD Bank.

Formal discussions between CCA, CFIA, AAFC and other affected species groups were launched in the fall of 2020, and work

The CFIA has informed industry that they will

continues into 2021. CCA is recommending

exercise flexibility in cases where industry

the FMD Bank have 30 million doses,

is unable to meet the recordkeeping and

consisting of 2.5 million doses each of

transfer of care documents requirements

12 different FMD vaccine concentrates

under Part XII of the regulations during the

deemed highest risk to Canada. The

COVID-19 pandemic.

projected annual cost for a fully sustained FMD Vaccine Bank is $3 million.

OIE BSE Negligible Risk Status

are making significant headway on this with consumers and policy-makers.

CCA continues to engage with government concerning the Fisheries Act. The Act received Royal Assent in June 2019 prior to the regulations being developed. The Department of Fisheries pledged to consult with stakeholders on the development of standards, codes of practice, and prescribed works regulations. The Department of Fisheries has developed six interim codes of practice, and we have provided initial feedback on these codes before they are to be finalized.

CCA is also engaging with the Department

In partnership with CFIA, CCA is co-chairing

Food Policy

of Fisheries for clarity on the development

a working group for Canada’s submission

In recent years, we have seen greater global

for BSE Negligible Risk Status to the World

species including Bull Trout, Chinook,

and national attention on food policy. The

Organisation for Animal Health (OIE). All

Coho Salmon and others, as it is unclear

consumer, and therefore the policy-maker,

target milestones were achieved, and a

how critical habitat is determined. Also,

is increasingly interested in where their

strong application was submitted in July

CCA encourages the development of a

food comes from. CCA has participated in

2020 for consideration by OIE in the

national framework for Ecological Goods

these important discussions. We have been

spring of 2021. Achieving BSE Negligible

and Services.

involved in the Government’s “Healthy Eating

Risk Status in Canada will have a positive

Strategy”, the “National Food Policy” and

impact on market access, and it sets the

most recently, the “Simulated Meat Labelling

stage for a review of Canada’s specified

Guidelines”. Recognizing that the focus

risk material removal protocols and an

on food, health and the environment will

opportunity to become more competitive

continue, CCA created the new Food Policy

with our key trading partners. A similar

Committee in 2019. This Committee will lead

working group for this effort is already

on issues like alternative proteins, front-of-

underway in cooperation with CFIA.

pack labeling, food waste, and more.

of recovery strategies for specific aquatic

In 2021, the CCA will continue its dedicated work on behalf of Canada’s 55,000 beef farms and ranches to realize the vision of a profitable Canadian beef industry with high-quality beef products recognized as the most outstanding by customers at home and around the world.

Bob Lowe President, Canadian Cattlemen’s Association

BFO ANNUAL REPORT 2021

57

CANADIAN CATTLE IDENTIFICATION AGENCY Continuing to prepare for and anticipate proposed regulations, launching a new resource centre, and operating through a global pandemic made 2020 an interesting year for the Canadian Cattle Identification Agency (CCIA).

Proposed Regulatory Amendments All regulatory packages have been placed on hold. It is anticipated that in the late summer of 2021, based on priority for release that will not impact the economic recovery, Canada Gazette I will be published with the traceability regulatory amendments.

COVID-19

It will be followed by 90-day consultation

CCIA paid close attention to all public health updates and incoming information regarding COVID-19. As a happy result, CCIA’s digital systems worked well by offering traceability needs from the comfort and safety of the user’s home. The Canadian

period. It is an additional two years from that point until regulations will be in effect.

UHF tags, which are highly supported by the feedlot and packer sectors. While CCIA is technology neutral, we have a project underway to review all relevant literature available on the subject and its application to the livestock industry, which was successfully approved for funding. The next step, which has recently been submitted for funding, is to draft an implementation plan to phase out of the current tags (low

The regulatory changes are intended

frequency) and phase in UHF.

to enable a more timely and effective response by CFIA. Proposed amendments

It is important to note that International

to Part XV of the Health of Animals

Organizational Standards for UHF

Livestock Tracking System (CLTS) and the

Regulations have been postponed once

technology are two years away from having

CLTS MOBO APP were created for that

again but are still under consideration.

testing standards for UHF. All current

convenience, and these platforms continued to assist with traceability requirements.

Tags were shipped directly by mail

approved tags have to meet ISO standards.

Tags

through the webstore and Client Support

• Allflex

Representatives were available toll-free to

In anticipation of the fall run, Allflex

assist users with any additional needs.

made specific advancements to the

Staff worked from home from March to September, and again starting in November, with a current return on January 25, 2021. The return has been supported by new office conduct policies with modified cubicles to provide additional protection to staff in close proximity.

CCIA is also pleased to be providing assistance to the Alberta and

There have been lots of discussions about

stud component of their tags. This was done as part of their commitment to continual improvement and to provide a response to tag retention issues reported by producers. The new design and

Centre (CRC), support.canadaid.ca, went live mid-year. It was a big project for the Communications, Client Support and IT teams.

The new CRC is your “how to” destination

been validated globally on tens of millions

for everything CLTS. Here you’ll find

of animals, will be adopted immediately

comprehensive guides for how to submit

upon CFIA approval and identified

events, frequently asked questions,

on Allflex packaging with an updated

and more. Each guide features simple

Saskatchewan provincial governments with the set-aside program for fed cattle.

• Ultra-High Frequency (UHF) Tags

BFO ANNUAL REPORT 2021

The new and improved CLTS Resource

manufacturing methodology, which has

notification sticker.

58

The new CLTS Resource Centre – your CLTS “how to” destination

instructions and screenshots to guide you through each process step-by-step.

Chat Feature

necessary modifications. The change will be

national administrator responsible for

totally implemented by April 2021. The tags

dairy bovine animals under Part XV of the

We’ve added a chat feature to canadaid.ca

have not changed, as they have always had

Health of Animals Regulations.

and support.canadaid.ca providing another

15 digits, only the submission to the CLTS

option for customers to reach Client

has changed, now requiring all the digits.

Support without speaking directly on the phone or sending an email. The chat box only appears during business hours.

Dairy

CCIA entered into a service agreement with Lactanet, and after the October 5th DairyTrace launch, continued receiving regulated data from intermediate (i.e.

Lactanet Canada and Dairy Farmers of

feedlots) and terminal sites that report

Change to Submissions to the CLTS

Canada moved forward with “DairyTrace”,

events for dairy tags. The reporting for

the national dairy cattle traceability

those regulated parties will continue as

On October 1st, CCIA began phasing the

program. This became a reality in October

they know it, but all data related to dairy

requirement from 9-digit data entry to

and provides a single, common framework

tags will reside at DairyTrace and not in

all 15 digits when submitting data to the

for dairy farmers to track animal identity

CCIA’s CLTS database.

CLTS. This is a staggered change allowing

and movements. Earlier in the year, the

all types of data submissions to make

CFIA recognized Lactanet Canada as the

BFO ANNUAL REPORT 2021

59

FARM & FOOD CARE ONTARIO

Farm & Food Care Ontario (FFCO) is

for a course and hosted a session at

A new, interactive website (www.

grateful for the continued support of

Cattlemen’s College in February.

RealDirtonFarming.ca) will provide

Platinum Members like Beef Farmers

opportunities for digital learning and

of Ontario (BFO), which enables us to

content sharing, and will be updated

pursue the important work of building public trust in Ontario agriculture. With the appointment of BFO director Jason Leblond in 2020 to an ex officio role on our board, FFCO’s work with BFO has

FarmFood360°

between publications. A supplementary Teachers’ Guide created in partnership with Agriculture in the Classroom Canada will be distributed in 2021 to educators across Canada.

been strengthened even further.

The completion of a beef farm virtual

As COVID-19 realities landed early in 2020,

FarmFood360°. With teachers and

FFCO was faced with some challenging

students transitioning to online learning

FFCO looks forward to connecting with an

but necessary decisions to cancel all

and agricultural organizations seeking to

audience of food writers, bloggers, chefs,

planned physical events for the year.

connect with consumers virtually, www.

Registered Dietitians, culinary instructors

With large followings on social media and

FarmFood360.ca welcomed over 835,000

and students and professional home

strong website platforms, FFCO was able

users and 2.95 million page views in

economists each year. With farm tours

to shift strategies and activate a number

2020, a 1,222 per cent and 470 per cent

impossible, FFCO partnered with the Royal

of meaningful virtual programs that made

increase over 2019 respectively. Thanks to

Agricultural Winter Fair to host a virtual

this a remarkably successful year for FFCO,

a partnership with BFO, viewers can now

version of the annual Food & Nutrition

despite the complicated circumstances.

tour a beef feedlot and cow-calf operation

Forum and connect with 250 attendees

and meet two farm families sharing how

from the same target audience. Wanting

they care for animals and the environment

to focus on livestock and sustainability as

on their farms. Appreciation goes to the

a key topic, the event featured Dr. Sara

Brown and Nesbitt families for hosting the

Place of Elanco as one of two keynote

filming crew on their farms last summer.

speakers. A beef farmer from Alberta was

Training and Workshops FFCO supports member groups, farmers and the broader agricultural industry through a variety of speaker services and training. In 2020, this included 36 presentations and 15 virtual “Speak Up”

COMMUNICATIONS & OUTREACH

reality tour was a great addition to

The Real Dirt on Farming

Virtual Food & Nutrition Forum

also included in a farmer panel discussion.

Farm to Facebook

and media training courses that are

2020 marked the launch of the fifth

designed to help participants effectively

edition of The Real Dirt on Farming. The

FFCO and AgScape partnered in 2020 to

engage with the public or media. Other

publication, supported by commodity

offer a series of Facebook Live farm tours

virtual training sessions focused on

groups and agribusinesses across

throughout 2020. “Farm to Facebook”

activist-related issues and providing

Canada, including Canada Beef, covers

allows viewers, including students and

advice on how to protect farm properties

topics such as the relationship between

teachers, to connect with farmers in real

from unwanted visitors. In addition to

grazing animals and the environment

time. A total of 17 tours attracted 93,429

three courses held with BFO in 2019,

and careers in the agri-food sector. 32

views over the year, including one in

FFCO partnered with the Peterborough

career profiles are featured, including

May featuring BFO director Jordan Miller

Cattlemen’s Association in January 2020

two beef farmers and a beef researcher.

and his cousin Cam. FFCO and AgScape

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BFO ANNUAL REPORT 2021

will continue to offer these tours throughout 2021.

Faces Behind Food “Faces Behind Food” continues to highlight the diversity of people and career opportunities within the Canadian agri-food system. A total of 104 people were profiled in 2020. The campaign continues to feature beef farmers in regular rotation, including the Buis family from Chatham, the Badour family from Renfrew, Blair Williamson from Lambton, Kim Jo Bliss from Rainy River, the team at Keady auctions, and several 4-H beef club members interviewed at the 2019 RAWF. Faces Behind Food also received recognition at the Best of Canadian Agri-Marketing Association awards with a Certificate of Merit in the category “Social Media Campaign Directed at the General Public”.

Livestock Emergency and Farm Fire Awareness Projects FFCO’s Livestock Emergency Training

Bill 156 Bill 156, Security from Trespass and Protecting Food Safety Act, 2020,

ENVIRONMENT INITIATIVES

was a key area of interest for the

Timing Matters and Peer to Peer

agricultural community in 2020. FFCO

Timing Matters is a coalition of

worked alongside livestock commodity groups and general farm organizations to interpret and comment on the new regulations. In 2021, FFCO will support the development of “Animal Protection Zone” signage for distribution to livestock farms across the province.

Farm Animal Care Helpline

course was offered virtually in 2020. It

The Farm Animal Care Helpline is

is designed to give first responders a

a confidential service that allows

better understanding of animal behavior

concerned farmers and community

and management during livestock

members to report situations where they

emergencies, such as truck rollovers.

feel farm animals require better care,

60 first responders from across Ontario,

or where farmers themselves can call

plus veterinarians and other livestock

should they require help. FFCO received

stakeholders, were trained throughout

11 calls in 2020 and worked with farmers,

four online workshops. FFCO filmed

experienced staff and commodity groups

two instructional videos detailing

to investigate reports. The helpline is

the mechanics of livestock trailers

operated in partnership with all major

and proper extrication techniques to

commodity organizations, including BFO.

farm organizations, including BFO, focused on promoting good manure management and planning. A multimedia communications strategy was launched in 2020, which included the development of seven infographics, video animation, published articles and a growing social media presence. A subgroup, the Peer-to-Peer Network, focuses on raising awareness about the impact of nutrient run-off when manure is applied to frozen fields. Peer to Peer will continue to help identify practical alternatives to spreading manure on frozen or snow-covered ground in an effort to use nutrients more effectively and reduce the environmental risks to water bodies.

supplement the course.

BFO ANNUAL REPORT 2021

61

LIVESTOCK RESEARCH INNOVATION CORPORATION Research and innovation are key to the

This year we restructured our International

commercialization and extension) and

success of any business or sector like

Research Advisory Committee with a new

making recommendations for Ontario to

Ontario’s beef industry. The Livestock

mandate and virtually all new members.

consider so that we get the best return on

Research Innovation Corporation (LRIC)

Members now include:

our investments.

• Stan Blade – Dean, Faculty of

The founding members of LRIC (BFO,

was founded as a service organization to help members better manage research and to advance innovations that help the livestock sector be competitive. LRIC remains committed to delivering good value for membership fees. Our membership continues to grow, and this past year we welcomed Meat and Poultry Ontario and Trouw Nutrition as Partner members. We also welcomed three new directors to our board, one of whom, Jean Szkotnicki, will be very familiar to the beef industry, as she once served as OCA Assistant Manager and recently retired from the Canadian Animal Health Institute. Dairy Farmers of Ontario (DFO) also decided to return to the fold as

Agricultural Life and Environmental Sciences, University of Alberta, also Director on Results Driven Agricultural Research Board • Paul Dick – President, PDA Ltd. • Brian Lindsay – Managing Director, Lindsay Consulting (UK) • Steve Miller – Deputy Director, Animal Breeding and Genetics Unit (Australia) • Roberto Soares – Ceva Animal Health International

DFO, Ontario Pork and the poultry organizations) now meet regularly to share good ideas and deal with issues that affect all sectors. One such issue is funding to make best use of the new research facilities at Elora. The current funding agreement between OMAFRA and the University of Guelph comes due March 2023, and everyone involved must work together to ensure that funds are available to conduct research of importance to industry. There have been great strides made in the past few years in facilities and

founding members of LRIC, which provides

This group will be examining the key

faculty, now we need to safeguard the

Ontario livestock producers with a much

elements of an innovation system

operating funding needed to get the best

more unified voice with respect to research.

(funding, priorities, program management,

use out of this investment.

62

BFO ANNUAL REPORT 2021

BFO Past President, Joe Hill, answering questions from University of Guelph faculty on his farm.

Membership Program

Livestock Innovation that has a growing

about an exemption of a portion of the

Our mentorship program has been very

report, and also have an active Twitter

research station access fees for those

successful, now with nine participants.

account. Also, to bring timely topics to

livestock organizations that put up their

This unique program is aimed at early-

the forefront, we have initiated a series

share of funds for new research facilities,

stage faculty with current members from

of white papers that will involve noted

BFO included. OMAFRA agreed that this

agricultural, veterinary and engineering

contributing editors. The first paper

exemption would be continued through to

colleges at the University of Guelph. By

deals with regenerative agriculture with

the end of the current Alliance agreement.

building better connections with industry and

Rene Van Acker, Dean of the Ontario

This will save BFO several thousands of

across different academic programs early

Agricultural College, as editor. Watch

dollars in the coming years.

in their career, participants will have more

our website (www.livestockresearch.

robust research programs closely linked to

ca) for future papers on livestock and

industry needs and expand their connections

greenhouse gas, antimicrobial use in

to effectively get results out to those who can

livestock, genomics, one health, etc. For

use them. We plan on starting the second

many of these topics, we will be hosting

group in the spring of 2021.

a webinar with a brief presentation and a

Working with the founding members, LRIC led discussions with OMAFRA

This year’s annual call for Alliance research proposals saw 33 proposals, all of which were reviewed by LRIC along with industry reviewers that we organized. While the number of proposals by sector fluctuates across years, it was noted that there was

We continue to place a big emphasis on

only one beef proposal this year.

communications with our members and their producers. We write articles that appear in Ontario Beef and other producer

subscription list, and a quarterly members

chance to ask questions about the topic that will affect your farm and family into the future.

LRIC is pleased to be working with Beef

magazines, opinion articles/editorials for

Farmers of Ontario to advance research

Farmtario, a monthly newsletter called

initiatives and drive innovation in the sector.

BFO ANNUAL REPORT 2021

63

ONTARIO CATTLE FEEDERS’ ASSOCIATION The Ontario Corn Fed Beef (OCFB) program

to OCFB, and we’re really promoting our

has built a strong partnership with Beef

story with the consumers through the

Farmers Ontario (BFO), which has been

recognizable brand logo.

crucial to the success and growth of the OCFB brand. Our relationship’s strength was more important than ever this past year as our organizations worked closely together to respond to the challenges of the COVID-19 pandemic and processing capacity issues in Ontario.

Throughout the pandemic, we remained focused on our core business of building the OCFB brand and bringing value to the Ontario beef sector. From my perspective, the real importance of brand marketing is evident in these times of crisis. Along with our relationship with BFO, the

what we have to offer here in Ontario.

Our promotional efforts received a significant boost in December. We were

We have used much of this philosophy in

excited to announce that the OCFB

the building of the Ontario Beef Market

Quality Assurance program became an

Development Program. We’re working with

approved certifying body for the Canadian

industry partners to develop more brands

Roundtable for Sustainable Beef’s (CRSB)

with unique attributes that provide more

Certified Sustainable Beef Framework.

opportunities for Ontario producers who

This approval is an important milestone for

may or may not be already with a program.

our industry because the market demand

It’s part of a drive toward local and “where

for beef raised according to sustainability

food comes from” that I believe COVID-19

standards, as set by the CRSB, continues

has entrenched in the consumer’s mind. It’s

to increase. At this time, demand exceeds

an opportunity to provide further sustainable

the available supply. And with the recent

growth for producers and processors in

certification of the Cargill Guelph facility

Ontario. But, again, the growth is driven by a

to process cattle originating from CRSB-

mix of export and domestic markets.

certified farms and ranches, the Ontario cattle and beef industry is well-positioned

other partnerships we have formed are

This year, we were pleased to be involved

incredibly critical. At the early stages of our

in the “Ontario Made” program. This new

development, members of the Ontario Cattle

program from the Canadian Manufacturers

Feeders’ Association (OCFA) realized that

and Exporters promotes the world-class

we needed to move beyond commodity

goods that are made across the province

production. We needed to have uniqueness

by helping consumers easily identify,

CRSB certification is an excellent way for

and differentiation in our beef products to

access and purchase local products.

Ontario farmers to share their sustainability

gain the foothold in foreign markets that

You’ll see the Ontario Made logo on the

story. Consumers are increasingly

we now enjoy. And we continue to expand

promotional materials for Loblaw stores,

interested in how their food is produced

the OCFB program, even during this crisis

along with the Canada Beef logo. It’s part

and seek more information than ever before

period. We’re bringing on new customers

of the entire push to recognize and capture

about the practices used to raise beef in

64

BFO ANNUAL REPORT 2021

to meet this increasing market demand. Our retail and foodservice partners have also been very clear in their desire to source certified and sustainable beef in Ontario.

Canada. From land and water stewardship

frequently. The changes made are also

to supporting local communities, and from

essential to provide the key support our

animal care to innovations that improve

processing partners need when it comes

efficiency and productivity, certification

to their marketing strategies and quality

provides producers with recognition for the

assurance from the farm gate forward.

sustainable practices they already employ

Ensuring the program continues to provide

on Canadian beef farms and ranches.

all the technical requirements our packer

Retail and foodservice companies want to

partners require is essential. As markets’ and

satisfy consumer demand for responsibly

individual customers’ requirements around

raised products by sourcing beef that

documentation and verification of processes

has been verified as raised according to

increase, our program must continue to

sustainability standards, and to tell the story

evolve to meet those demands and ensure

of sustainability to their customers.

our member feedlots are not overburdened

frontline healthcare workers, are top of mind.

In closing, I would like to thank everybody in the entire agricultural sector who has partnered with us and supported us and our program. I’m so fortunate to be in a position where I have the opportunity to lead and be part of the growth of the OCFB brand.

It’s rewarding to see the various pieces fit together and see the positive results. It would not be possible without the backing we receive from the industry. I want to express my thanks for the support we have

with unnecessary and inefficient processes.

received from the Beef Farmers of Ontario,

blueprint for the OCFB program. From the

At this time, we continue to conduct our

Farmers of Ontario.

beginning, we set a goal to demonstrate

day-to-day operations under the COVID-19

robust program leadership when it comes

protocols as advised by the public health

to on-farm quality assurance as it relates

authorities. We’re very cautious as we

to the brand, the producers, the processor

maintain our business structure through

partners, through retailers and right to

this whole process. Our concerns about

the consumers who buy our branded

the effects of the coronavirus go well

beef products to serve their families. As

beyond the impact on the beef industry.

story in Canada. I’m looking forward to the

part of our commitment to quality and

Through our partnerships in foodservice,

future, knowing that we have accomplished

continuous improvement to our “Good

we deal with many restaurants and privately

a lot of great work together and that there

Production Practices” and record-keeping

owned businesses, including all the food

is more to come in the years ahead.

requirements, we have revised the OCFB

and agriculture-related supply companies

Quality Assurance Program Manual.

that have been affected. The challenges

Changes to the manual are reviewed

they’re experiencing, along with those of our

This recent milestone builds on our

the Government of Ontario and the Grain

We have something in Ontario that we need to continue to focus on. We have strong partnerships, passionate and resilient producers, an industry-leading quality assurance program and the best beef brand

Jim Clark Executive Director, Ontario Cattle Feeders’ Association and Ontario Corn Fed Beef Program

BFO ANNUAL REPORT 2021

65

LIVESTOCK FINANCIAL PROTECTION BOARD (FUND FOR LIVESTOCK PRODUCERS) FINANCIAL POSITION OF FUND BALANCE

REVENUE March 31

Deduction Income (Fees)

Investment Income

EXPENSE March 31

Total

Claims Paid Less Recoveries

Fund Expenses Total Expenses

1982-90

$ 4,193,421

$ 1,840,250

$ 6,033,670

1982-90

$ 1,144,988

$ 230,190

$ 1,375,178

1990-91

122,045

550,719

672,764

1990-91

1,062,592

26,468

1,089,060

1991-92

122,690

516,580

639,270

1991-92

(4,128)

28,141

24,013

1992-93

129,619

359,584

489,203

1992-93

297,706

26,318

324,024

1993-94

118,522

320,641

439,164

1993-94

0

16,531

16,531

1994-95

117,214

272,497

389,711

1994-95

631,307

25,276

656,583

1995-96

116,336

395,416

511,751

1995-96

(140,770)

39,655

(101,115)

1996-97

122,363

280,360

402,723

1996-97

84,964

55,604

140,568

1997-98

129,849

285,801

415,650

1997-98

1,040

12,874

13,915

1998-99

119,662

330,511

450,173

1998-99

135,420

51,087

186,507

1999-2000

117,271

291,267

408,537

1999-2000

7,534

74,151

81,685

2000-2001

117,586

461,611

579,197

2000-2001

2,086,337

79,302

2,165,639

2001-2002

104,694

210,047

314,741

2001-2002

678,357

192,367

870,724

2002-2003

116,558

196,465

313,023

2002-2003

(39,760)

63,465

23,705

2003-2004

100,233

186,020

286,253

2003-2004

131,342

66,473

197,815

2004-2005

106,275

170,477

276,752

2004-2005

247,787

69,989

317,776

2005-2006

115,188

222,225

337,413

2005-2006

0

64,248

64,248

2006-2007

103,033

254,962

357,995

2006-2007

(350,000)

62,535

(287,465)

2007-2008

102,652

296,185

398,837

2007-2008

0

69,859

69,859

2008-2009

113,422

265,844

379,267

2008-2009

0

67,631

67,631

2009-2010

100,248

262,957

363,205

2009-2010

(31,044)

87,295

56,251

2010-2011

109,882

264,454

374,336

2010-2011

235,110

148,360

716,338

2011-2012

105,346

269,320

374,666

2011-2012

69,371

116,571

402,483

2012-2013

106,068

244,642

350,710

2012-2013

657,227

127,766

784,993

2013-2014

112,525

245,792

358,316

2013-2014

(290,926)

179,348

(111,578)

2014-2015

110,083

254,063

364,146

2014-2015

164,452

179,770

344,222 614,660

2015-2016

109,267

241,410

350,677

2015-2016

387,136

227,524

2016-2017

204,805

237,478

442,283

2016-2017

0

196,733

196,733

2017-2018

199,631

246,024

445,655

2017-2018

0

203,168

203,168

2018-2019

206,302

261,664

467,966

2018-2019

2019-2020*

203,297

287,849

491,146

2019-2020*

0

174,119

174,119

13,768

117,578

131,346

*These are currently unaudited financials as the audit is in progress

Fund Balance at March 31st, 2020 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

$496,350 $1,559,367 $2,111,466 $2,803,336 $3,470,057 $3,629,155 $4,353,020 $4,683,492 $4,267,196 $4,882,453 $5,047,632 $5,470,264 $5,203,392

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

$5,816,257 $6,078,412 $6,480,147 $6,743,918 $7,070,770 $5,484,329 $4,928,346 $5,218,720 $5,306,236 $5,265,078 $5,538,243 $6,183,703 $6,512,681

*This is currently based on unaudited financial statements.

66

BFO ANNUAL REPORT 2021

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$6,824,578 $7,131,542 $7,122,407 $7,311,131 $6,876,848 $7,347,626 $7,063,727 $7,103,567 $ 7,349,117 $ 7,591,604 $ 7,885,451 $ 8,245,252 *

Note: 1) Total income in 1982-83 includes a $25,000 startup grant from OMAFRA. 2) Deductions to the Fund were lowered from $0.20/head to $0.10/head in 1984. Deductions were lowered from $0.10/head to $0.05/head in April 1989 for sellers and agents and eliminated for buyers. Deductions were increased from $0.05/ head to $0.10/head in 2016.

3) Fund expenses include the board and expenses for determining financial responsibility.

FINANCIALS 2020 Audited Financial Statements For the year ended December 31, 2020

2021 Preliminary Budget

BFO ANNUAL REPORT 2021

67

BEEF FARMERS OF ONTARIO INDEX TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020 Page INDEPENDENT AUDITOR'S REPORT

3-4

FINANCIAL STATEMENTS Statement of Financial Position

5

Statement of Changes in Net Assets

6

Statement of Operations

7

Statement of Cash Flows

8

Notes to the Financial Statements Schedule of Expenses

68

BFO ANNUAL REPORT 2021

9 - 13 14

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of: Beef Farmers of Ontario Opinion We have audited the accompanying financial statements of Beef Farmers of Ontario, which comprise the statement of financial position as at December 31, 2020 and the statements of changes in net assets, operations and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, these financial statements present fairly, in all material respects, the financial position of Beef Farmers of Ontario as at December 31, 2020 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not for profit organizations.

Basis of Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Beef Farmers of Ontario in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 organization's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the organization or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the organization's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 3

BFO ANNUAL REPORT 2021

69

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: 

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal control.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the organization’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 organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the organization 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.

We 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.

Guelph, Ontario February 16, 2021

Chartered Professional Accountants Licensed Public Accountants

Page 4

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BFO ANNUAL REPORT 2021

BEEF FARMERS OF ONTARIO STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2020 2020 CURRENT ASSETS Cash Accounts and grants receivable Accrued checkoff fees receivable Investments (note 4) Inventory - supplies Inventory - livestock (note 11) Prepaid expenses

2019

ASSETS $ 1,710,705 64,733 535,195 2,750,696 29,377 36,000 32,375 5,159,081

CAPITAL ASSETS (note 5)

$

931,747 277,941 520,819 2,159,388 22,451 34,263 52,293 3,998,902

274,306

277,432

$ 5,433,387

$ 4,276,334

$

$

LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities Accrued national checkoff payments payable Deferred revenue (note 6) Research trust liability - New Liskeard (note 11) Government remittances payable

377,559 48,654 500 176,502 48,688 651,903

411,890 49,218 5,710 184,241 12,887 663,946

NET ASSETS NET ASSETS Internally restricted building repair fund (note 2g) Internally restricted research and projects fund (note 2g) Internally restricted trade action fund (note 2g) Externally restricted marketing fund (note 2g) Unrestricted

94,559 449,189 200,000 328,673 3,709,063 4,781,484

94,559 756,679 0 0 2,761,150 3,612,388

$ 5,433,387

$ 4,276,334

See notes to the financial statements Page 5

BFO ANNUAL REPORT 2021

71

BEEF FARMERS OF ONTARIO STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2020 INTERNALLY INTERNALLY INTERNALLY RESTRICTED RESTRICTED RESTRICTED BUILDING RESEARCH TRADE REPAIR AND PROJECTS ACTION FUND FUND FUND

EXTERNALLY RESTRICTED MARKETING FUND UNRESTRICTED

$

$

(note 2g)

BALANCE, beginning of year

(note 2g)

94,559

Surplus of income over expenses

0

Transfers (note 14)

0

BALANCE, end of year

$

94,559

$

(note 2g)

756,679

$

0 (307,490) $

449,189

$

0

(note 2g)

2020

2019

0

$ 2,761,150

$ 3,612,388

$ 3,200,517

0

0

1,169,096

1,169,096

411,871

200,000

328,673

0

0

$ 4,781,484

$ 3,612,388

200,000

$

328,673

See notes to the financial statements

(221,183) $ 3,709,063

Page 6

See notes to the financial statements Page 6

72

BFO ANNUAL REPORT 2021

BEEF FARMERS OF ONTARIO STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020

INCOME Fees Less: Commissions to firms making deduction 7 day dealer refund Investment income Magazine revenue Other income Toronto Stockyards Land Development Board (note 12) Grants (note 13)

2020 BUDGET (note 7)

2020 ACTUAL

2019 ACTUAL

$ 4,965,000 (50,000) (245,000) 4,670,000 70,000 80,000 18,500 4,838,500

$ 5,213,362 (38,051) (254,633) 4,920,678 99,939 80,640 36,657 5,137,914

$ 4,196,893 (42,933) (220,023) 3,933,937 115,062 71,914 31,613 4,152,526

EXPENSES Association activities - budgeted (schedule 1) Operations budgeted (schedule 1) SURPLUS OF INCOME OVER EXPENSES for the year

$

1,152,000 0 5,990,500

1,176,929 120,917 6,435,760

1,128,989 111,113 5,392,628

4,284,100 1,703,000 5,987,100

3,849,483 1,417,181 5,266,664

3,207,810 1,772,947 4,980,757

3,400

$ 1,169,096

$

411,871

See notes to the financial statements Page 7

BFO ANNUAL REPORT 2021

73

BEEF FARMERS OF ONTARIO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2020 2020 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Surplus of income over expenses for the year Items not requiring an outlay of cash Amortization

$ 1,169,096

2019 $

411,871

18,448 1,187,544

17,645 429,516

213,208 (14,376) (6,926) (1,737) 19,918 (34,331) (564) (5,210) (7,739) 35,801 198,044 1,385,588

(132,197) (16,758) 3,026 2,211 (989) (1,658) (13,790) (5,245) 23,858 (13,521) (155,063) 274,453

(15,322) (591,308) (606,630)

(12,547) (103,405) (115,952)

NET INCREASE IN CASH

778,958

158,501

NET CASH, beginning of year

931,747

773,246

Changes in non-cash working capital Accounts and grants receivable Accrued checkoff fees receivable Inventory - supplies Inventory - livestock Prepaid expenses Accounts payable and accrued liabilities Accrued national checkoff payments Deferred revenue Research trust liability - New Liskeard Government remittances payable

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES Additions to capital assets Investments

NET CASH, end of year

$ 1,710,705

$

931,747

See notes to the financial statements Page 8

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BFO ANNUAL REPORT 2021

BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020

1.

PURPOSE OF THE ORGANIZATION Beef Farmers of Ontario is a tax exempt body established by Provincial legislation to support the beef cattle industry in Ontario through promotion, research and other activities.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The organization is subject to the Ontario Business Corporations Act. The financial statements have been prepared in accordance with Canadian accounting standards for not for profit organizations and include the following significant accounting policies: (a)

REVENUE RECOGNITION The organization follows the restricted fund method of accounting for contributions in which externally restricted contributions are recognized upon receipt in the appropriate fund corresponding to the purpose for which they were contributed. Externally restricted contributions of the unrestricted fund are recognized as revenue when the related expenditure occurs. Unrestricted revenues are recognized in the unrestricted fund when received or receivable and collection is reasonably assured.

(b)

INVENTORY Inventory is stated at the lower of cost, using the weighted average cost basis, and net realizable value.

(c)

CAPITAL ASSETS Capital assets are recorded at cost and amortized on the basis of their estimated useful life using the following methods and rates: Building and building renovations Office furniture and equipment Computer equipment Computer software

(d)

- 4% declining balance - 20% declining balance - 30% declining balance - 50% declining balance

IMPAIRMENT OF LONG LIVED ASSETS Long lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized when the carrying value exceeds the total undiscounted cash flows expected from their use and eventual disposition. The amount of the impairment loss is determined as the excess of the carrying value of the asset over its fair value.

(e)

USE OF ESTIMATES The preparation of financial statements in conformity 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The significant areas where estimates have been used are the accrued checkoff fees receivable, amortization and accrued national checkoff payments payable. Actual results could differ from those estimates.

Page 9

BFO ANNUAL REPORT 2021

Page 9

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BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (f)

FINANCIAL INSTRUMENTS Measurement of financial instruments The organization initially measures its financial assets and liabilities at fair value.

The organization subsequently measures all its financial assets and financial liabilities at amortized cost, except for its investments, which are measured at fair value. Changes in fair value are recognized in net surplus.

Impairment Financial assets measured at amortized cost are tested for impairment when there are indicators of impairment. If an impairment has occurred, the carrying amount of financial assets measured at amortized cost is reduced to the greater of the discounted future cash flows expected or the proceeds that could be realized from the sale of the financial asset. The amount of the write-down is recognized in net surplus. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net surplus.

Transaction costs The organization recognizes its transaction costs in net income in the period incurred.

However, financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or assumption.

(g)

FUND ACCOUNTING Internally restricted building repair fund The internally restricted building repair fund reports resources available for the organization's building repair activities.

Internally restricted research and projects fund The internally restricted research and projects fund reports resources allocated by the organization for research and project commitments in future years.

Internally restricted trade action fund The internally restricted trade action fund is used to fund trade or market access disputes and related projects. This fund shall maintain a minimum balance of $200,000 with an upper balance limit of $500,000. Up to 10% of any year end surplus may be transferred into this restricted fund provided the upper balance limit has not been exceeded.

Externally restricted marketing fund The externally restricted marketing fund reports resources allocated to the Ontario Beef Market Development (OBMD) program. The OBMD is a jointly administered marketing program led by a Joint Marketing Committee (JMC) under a formal agreement between the organization and the Ontario Cattle Feeders’ Association (OCFA) to collaborate on sustaining and building growth in the Ontario beef sector through domestic and international promotional and marketing initiatives. Any budgeted funds that have not been used at the end of a budget year are transferred into this fund for future program use at the discretion of the JMC.

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BFO ANNUAL REPORT 2021

Page 10

Page 10

BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (g)

FUND ACCOUNTING (continued) Unrestricted fund The unrestricted fund reports resources available for the organization's general operating activities.

3.

FINANCIAL INSTRUMENTS Unless otherwise noted, it is management's opinion that the organization is not exposed to significant interest, currency or credit risks arising from the financial instruments.

The extent of the organization's exposure to these risks did not change in 2020 compared to the previous period.

The organization does not have a significant exposure to any individual customer or counterpart.

4.

INVESTMENTS Investments consist of a combination of income and exchange-traded funds, as well as cash temporarily held in the investment trading account.

2020 2019 Beginning balance Transfers into an investment account Realized gains in the year Broker fees Unrealized gain on adjustment to market value

5.

CAPITAL ASSETS Cost Land Building Building renovations Office furniture and equipment Computer equipment Computer software

$ 2,159,388 500,000 75,494 (11,385) 27,199

$ 2,055,983 0 71,960 (11,466) 42,911

$ 2,750,696

$ 2,159,388

Net 2020

Net 2019

Accumulated Amortization

$

94,000 210,317 204,515 130,091 220,137 48,442

$

0 140,461 130,997 123,904 192,465 45,369

$

94,000 69,856 73,518 6,187 27,672 3,073

$

94,000 72,767 76,581 7,171 24,789 2,124

$

907,502

$

633,196

$

274,306

$

277,432

Page 11

BFO ANNUAL REPORT 2021

Page 11

77

BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020

6.

DEFERRED REVENUE Deferred revenue consists of sponsorships and trade show space related to the annual meeting: 2020

7.

2019

Beginning balance Less: amount recognized in the year Add: amount received relating to the following year

$

5,710 $ (5,210) 0

10,955 (10,455) 5,210

Ending balance

$

500

5,710

$

BUDGET FIGURES The budgeted figures are presented for comparison purposes as prepared and approved by the Board, reclassified to conform to the current financial statement presentation. They have not been audited or reviewed by the auditor.

8.

NATIONAL CHECKOFF AGENCY The organization pays $1 per head to the National Beef Cattle Research Market Development and Promotion Agency and for the National Beef Advertising and Promotion Campaign, and subsequently receives 50 cents per head (less administration) for association activities which are aligned with the national proclamation.

9.

FEEDER FINANCE PROGRAM The organization has embarked on a joint program with the Ontario Ministry of Agriculture, Food and Rural Affairs, the purpose of which is to guarantee a portion of loans to feeder cattle finance co-operatives to purchase cattle. The expenses are not to exceed $55,000 in the provincial government's fiscal year and are fully recoverable from the Ministry.

10.

COMMITMENTS The organization has committed to fund future research projects in the amount of $225,583 in 2021, $126,038 in 2022, and $97,568 in 2023, totalling $449,189.

11.

NEW LISKEARD RESEARCH HERD During 1994, the organization entered into an agreement with the Ontario Ministry of Agriculture, Food and Rural Affairs in which the organization agreed to purchase the beef cattle research herd in New Liskeard. The purchase took place over a period of years during which the organization paid for the annual crop of calves born and continues to receive the proceeds from sale of these animals. Any excess proceeds over time must be used for beef research.

12.

TORONTO STOCKYARDS LAND DEVELOPMENT BOARD The former Toronto stockyards land has been developed as a commercial rental property by the Toronto Stockyards Land Development Board. The organization receives a contribution from this organization.

Page 12

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BFO ANNUAL REPORT 2021

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BEEF FARMERS OF ONTARIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020

13.

GRANT REVENUE Grant revenue relates to the following programs: National Feedlot Surveillance Program Feeder Finance Program (note 9) Trade Mission - South Korea and Japan project Export Market Diversification project Risk Management Projector project Youth Employment and Skills Program Environmental Value of Ontario Beef Production Truck Rollover Response project

14.

2020

2019

$

44,713 43,521 8,578 7,132 6,563 5,791 4,619 0

$

10,000 48,187 0 0 0 0 49,947 2,979

$

120,917

$

111,113

INTERFUND TRANSFER During the year, the organization transferred $200,000 (2019 - $0) to the internally restricted trade action fund and $328,673 (2019 - 0) to the externally restricted marketing fund from the unrestricted fund.

In addition, the organization transferred $307,490 from the internally restricted research and projects fund to the unrestricted fund (2019 - transferred $368,585 to the internally restricted from the unrestricted fund). The closing balance in the internally restricted research and projects fund of $449,189 is for beef cattle research commitments in future years.

15.

MATERIAL UNCERTAINTY DUE TO THE NOVEL CORONAVIRUS (COVID-19) During the year and subsequent to year end, the Novel Coronavirus (COVID-19) significantly impacted the economy in Canada and globally. Although the disruption from the virus is expected to be temporary, given the dynamic nature of these circumstances, the duration of business disruption and the related financial impact cannot be reasonably estimated at this time. This may impact the timing and amounts realized on the organization's assets and its future ability to deliver all services.

Page 13

BFO ANNUAL REPORT 2021

79

BEEF FARMERS OF ONTARIO SCHEDULE OF EXPENSES

Schedule 1

FOR THE YEAR ENDED DECEMBER 31, 2020 2020 BUDGET (note 7) ASSOCIATION ACTIVITIES - BUDGETED Annual meeting (net of revenue $54,559 - 2020, $55,425 - 2019) Grants and memberships - Canadian Cattlemen's Association - National checkoff (note 8) - Counties - Industry sponsorships and other grants - Farm & Food Care Ontario - Feed Ontario (food banks) Communications - Consumer engagement - Ontario Beef magazine - Producer engagement - Other (net of revenue $56 - 2020, $2,407 2019) License fee enforcement Lobbying Breeder finance support Industry, market development and research OCFA support for marketing corn-fed beef Feedlot/Cow-calf Committee (net of revenue $0 - 2020, $18,775 - 2019)

OPERATIONS - BUDGETED Elected officers' remuneration Elected officers' expenses Salaries and benefits Staff expenses Postage Premises costs Office Telephone and fax Legal Audit Amortization

$

205,000

2020 ACTUAL

$

214,894

2019 ACTUAL

$

202,658

474,000 460,600 210,000 128,740 28,760 20,000

498,710 448,688 165,574 92,033 27,650 30,000

492,267 467,950 206,327 100,618 30,000 20,000

270,000 160,000 75,000

268,044 151,821 18,821

287,967 150,708 45,229

52,000 115,000 160,000 0 1,475,000 450,000

36,407 92,708 145,536 3,900 1,226,156 428,166

64,555 133,470 132,895 3,593 421,701 451,629

0

375

$ 4,284,100

$ 3,849,483

$ 3,207,810

$

$

$

190,000 190,000 1,056,000 60,000 14,000 65,000 58,000 28,000 10,000 16,000 16,000

$ 1,703,000

150,883 77,643 929,375 30,172 10,885 67,889 70,559 23,857 22,410 15,060 18,448

$ 1,417,181

(3,757)

201,999 224,147 1,048,799 67,032 11,157 76,540 82,061 26,603 2,398 14,566 17,645

$ 1,772,947

See notes to the financial statements Page 14

80

BFO ANNUAL REPORT 2021

2021 PRELIMINARY BUDGET INCOME

2021 BUDGET

Check-off Income License Fees (Gross) - Estimated 903,000 marketings

$4,966,500

Less: Other Provinces’ License Fees

205,000

CCA Membership Fee

475,000

CCA Legal Assessment

30,000

National Check-off

903,000

Returned to Ontario

433,000

Commissions Seven Day Dealer Refund NET CHECK-OFF INCOME

45,000 245,000 $3,496,500

Other Income Toronto Stockyards Land and Development Board

1,185,000

Interest & Investments

$90,000

Lease Revenue

18,000

Brand Registration

500

SUBTOTAL

$1,293,500

TOTAL NET INCOME

$4,790,000

EXPENSES Administrative & General Elected Officers Remuneration Elected Officers Expenses Net Salaries and Benefits Staff Expenses Staff Training & Professional Development Postage & Courier

$190,000 100,000 1,068,000 50,000 7,000 10,000

Building & Office Maintenance

70,000

Office Supplies & Equipment Rentals

52,000

Telephone, Internet & Fax

22,000

Legal

20,000

Insurance

41,000

Audit & Accounting Services

16,000

Amortization

16,000

SUBTOTAL

$1,662,000

BFO ANNUAL REPORT 2021

81

Association Activities

2021 BUDGET

Memberships

$95,000

Sponsorships

65,000

County & District Grant and Sharecost Programs

130,000

Ontario Beef Magazine (Net) Tradeshows Annual Meeting and Voting Delegates Communications

80,000 7,500 80,000 43,000

Lobbying & Advocacy

170,000

Check-off Enforcement

110,000

SUBTOTAL ASSOC. ACTIVITIES

$780,500

Industry Expenses Ontario Beef Market Development Program Producer Engagement Activities Consumer Engagement Activities

82

75,000 300,000

Industry Development Projects & Activities

270,000

Research Projects

200,000

Ontario Corn-Fed Beef Support

430,000

SUBTOTAL INDUSTRY EXPENSES

$2,347,500

TOTAL NET EXPENSES

$4,790,000

GAIN /LOSS ON OPERATIONS

$1,072,500

BFO ANNUAL REPORT 2021

$ 0.00

NOTES

BFO ANNUAL REPORT 2021

83

/Beef Farmers of Ontario @BeefFarmersON @BeefNorth @OntarioBeef /OntarioBeef /OntarioBeef @beeffarmersofon @ontbeef

1.866.370.2333

84

BFO ANNUAL REPORT 2021

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