2019 Holstein Ontario Annual Report

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Holstein Ontario is also pleased to support the following: Ontario Dairy Youth Award Annual Scholarships European Young Breeders School Young Leaders Conference Spirit of 4-H Award ...and much, much more.














All-Ontario Competition saw 244 entries in 2019 (+21%) Our Branch was pleased to once again assist at 27 County Holstein Shows

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FALL 2019

W W W. O N TA R I O. H O L ST E I N . C A

AMBASSADOR HOTEL AND CONFERENCE CENTRE FEBRUARY 25-26, 2020 1550 Princess St, Kingston, ON (613) 548-3605

38th HOLSTEIN ONTARIO BRANCH ANNUAL GENERAL MEETING Tuesday, February 25, 2020 10:00 am – 3:00 pm

Open House Farm Visits

Tour some of the finest dairy farms Frontenac County has to offer. * See map for details

Kingston is also home to the Feihe Factory for

infant formula, and the Kingston Prison Farms!

Evening of Excellence Tickets available via Eventbrite 6:00 pm Cocktails 6:30 pm Dinner

• All-Ontario Presentations

* Sponsored by Quality Seeds, EastGen and Vicki Fletcher Photography

• Gay Lea Production Awards • Heart of the Herd Winner • Master Breeder Presentations • Fun Auction

Wednesday, February 26, 2020 8:00 – 9:30 am Past Presidents’ Breakfast * By invite only 10:00 am

Annual Meeting called to order

• Review of Minutes

• Branch Reports • Financial Report • Resolutions • National Report • Lactanet Presentation • Open Forum • Ontario Dairy Women’s Award • Ontario Dairy Youth Award Presentations 3:00 pm


Lunch generously sponsored by

We look forward to seeing you! For more information, contact Holstein Ontario 20 Corporate Place, Brantford, ON N3T 5R4 • 519-653-6180 branch@ontario.holstein.ca • www.ontario.holstein.ca

PRESIDENT’S MESSAGE Brad Lowry Welcome and thank you all for coming to the 38th Annual General Meeting here in Kingston, hosted by the passionate members of the Frontenac Holstein Club. It has been a great honour and privilege to serve as President of the Holstein Ontario Branch over the last year. I’ve had the opportunity to meet and engage with breeders and industry partners from across Ontario and Canada that I may not have had otherwise.

I would like to thank out-going director Dave Johnston for your years of dedication to the board. Your wealth of industry knowledge was a great asset to the Branch. I also welcome our two new directors, Kyle MacLeod and Alan Hawthorne. Both coming from prominent herds, I’m confident they will bring their passion to the board table.

Thank you to our dedicated Field and Office staff for all the time and effort you put into helping our members succeed. Whether it was through youth events, promotion in our Link magazine or with on-farm support, you help keep our industry vibrant and I thank you.

Lastly, I’d like to thank my family. This last year has required me to be away from the farm quite a bit. This would not have been possible without strong help at home. My wife Lindsay has supported me, and has done whatever is needed to allow me to fulfill my obligations as Branch President. I thank you so much.

I’ve enjoyed working with our GM Merina, and thank her for the tireless hours she puts into this role. I firmly believe the Branch is remaining relevant as our industry changes, and her passion and drive for success will continue to guide us towards the Branch’s Vision: Passionate Farmers – Prosperous Breed – Progressive Industry.

We have a great Board of Directors, and I am grateful to have been able to represent you this past year. I have always felt that diversity is a great strength and we have just that on our Board of Directors. We have a range of ages and experience. We have smaller herds and larger herds. We have new technology barns and conventional barns. Each of these brings a different view and perspective to our meetings. Thank you.


Brad Lowry

Ontario Branch Presidents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

William Grieve, Dorchester Jack Gillespie, Cambridge Allan Orr, Bradford Campbell Murray, Martintown Court Carmichael, Ilderton Robert H. Brown, Welland Frank Barkey, Blackstock Clarence Diefenbacher, Elmira Gordon Dodge, Cardinal James King, Brampton James Ismond, Powassan Harry Stanley, Norwood Ken Allen, Vankleek Hill Wayne Lennan, Petrolia Brian Coleman, Brantford John Hess, Kemptville Glen McNeil, Goderich John Fraser, Richmond Steve Walters, St. Thomas

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

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20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 2

Wayne Crossfield, Powassan Dean Warner, Hastings Ron Sleeth, Battersea Doug Karn, Woodstock Gerald Nyman, Bloomfield Russell Bennett, Spencerville Heather Parkin, Owen Sound Ken Empey, Dorchester Dennis Werry, Oshawa Brian Slaughter, Forest Brian Slaughter, Forest Ron Greaves, North Augusta Elvin Petherick, Campbellford Gary Cain, Paris Ian Fraser, Dalkeith Hank Hazeleger, Embro Sandy O’Hara, Schomberg Dave Johnston, Listowel Brad Lowry, Almonte

2019 Annual Report

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GENERAL MANAGER’S MESSAGE Merina Johnston Welcome to 2020! As we gain momentum in the New Year, it’s exciting to look back on 2019 and think of all we’ve achieved as an organization as we worked towards our mission - providing outstanding service and exceptional opportunities to our members to ensure longevity and excellence in the Holstein Breed. In 2019, we had a focus on efficiency – implementing several strategies to improve field service capabilities while maintaining and supporting club events. Aligning additional resources to field service is not without its challenges, but as the industry changes we welcome the opportunity to grow with it, adapting to the needs of our over 3,500 members. With membership and activity revenue representing our primary income sources, we recognize that becoming a leader in on-farm service will drive our organization forward in the future, allowing us to provide even more programs for our membership. With a remarkable team, I look forward to our growth as an organization. Your Holstein Ontario team is passionate, dedicated, and truly the ‘best of the breed’ – Mary, Andrea, Amanda, Jenna – thank you for a terrific year and for welcoming Jordan with open arms and an excited attitude. As a team and individually, you have all achieved tremendous success and I can’t wait to see what 2020 brings. Holstein Ontario’s foundation is our 3,500 members, with potentially more members in the future as we achieve success on-farm. Our Board of Directors is elected from this membership, and the Board plays an integral role as the team driving the direction of Holstein Ontario. Thank you to the Board for your ongoing guidance, direction, support, and confidence in implementing Holstein Ontario’s vision

and mission. Your hard work and passion are commendable and I thank you for your continued service. A special thank you to Brad Lowry, President of the Board, for his tireless efforts this past year. For those of you who aren’t familiar with Brad, he has a respectful and unassuming nature. Paired with a strong value system and a keen understanding of the industry, he was a pleasure to work for and a tremendous representative for the Ontario membership. As I mentioned above, our members represent an important component to the Branch, and for us, this relationship is vital for multiple reasons. Primarily, our members represent the heart and soul of Holstein Ontario. We live and breathe member services, as the members are the backbone of the organization. As a staff, our team also sees our members as so much more. We are passionate supporters of the dairy industry and when we walk the aisles of the grocery store, we are proud to be your customers and do our part in the support of Canadian Quality Milk. As we move forward into 2020, I am excited for the team I have surrounding me and for our opportunities to grow for our members as we achieve our mission and vision for the future. In anticipation for what the future holds, be sure to set your calendars for our Provincial Convention hosted by Wellington County next year - February 23 and 24, 2021, as well as the 2021 National Holstein Convention in Ottawa, April 21 to 24, 2021. Thank you,

Merina Johnston


Mary, Andrea, Amanda, and Jenna – over the last year, you’ve proven that if you can dream it, you can do it and I’m so proud to work alongside you. Each of you has brought unique skills and accomplishments to the team, and together, nothing is unattainable.

is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.

Thank you, Merina

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– Andrew Carnegie

Ontario Holstein Branch

Minutes of the 37th Annual General Meeting Wednesday, February 27, 2019

Holiday Inn, Peterborough

Opening Remarks:

The 37th Ontario Holstein Branch Annual Meeting took place on February 27th with President Dave Johnston opening the meeting and thanking everyone for coming on a cold and snowy day. He also thanked organizing committee, farm tours hosts, sponsors, EastGen, fun auction donors and buyers, etc. A moment of silence was held for all those that have served and passed.


The minutes of February 28, 2018, 36th Ontario Holstein Branch Annual Meeting were approved as printed.

President’s Report:

Dave Johnston read his written report noting it’s been a busy year for the Branch; it’s been fun, timeconsuming, challenging, with a whole lot of thank you’s that needs to be said. To Holstein Ontario field staff, it was an honour to work with them and see them in their element; and to the breeders for their passion and pride that everyone takes in their operations. It was great to see so many impressive cows all across the province, with one of the highlights being the trip to Thunder Bay. This was truly a memorable visit to the North, with lots of camaraderie, passion and working together. Thanks to industry partners, for all their support and to the Branch’s main partner Holstein Canada, a treasured working relationship. Also to the many volunteers and committees that help drive the grassroots efforts of the Branch, a personal thanks for all the countless hours put in. Dave also thanked all the Past Presidents of the Branch that made it out to the Past President’s breakfast earlier today. Lastly, he thanked his family, his wife Christine, Mary Poirier and Andrea Emond in the office, and General Manager Merina Johnston. At this time, Dave introduced the 2019 Ontario Holstein Branch Board of Directors:

• Western Ontario • West-Central Ontario • East-Central Ontario • Eastern Ontario • National Director appointed to Board:

Dave Johnston, Hans Pfister James Cranston, Wilfred Strenzke Tara Bullock, Tom Hawman Brad Lowry, Cole Verburg Dennis Werry

Dave announced the new mission, vision, pillars and core values for the Ontario Branch.

General Manager’s Report:


Passionate Farmers. Prosperous Breed. Progressive Industry.

Mission Statement:

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


Youth Activities. Education. Breed Promotion. Industry Advocates.

Core Values:

Passion. Integrity. Teamwork.

Merina Johnston spoke of her interesting, fun, challenging, and exciting year with the Branch. Alongside the statistics presented, there were several other projects undertaken; from covering a knee replacement, launching a new website, streamlining processes to continued financial analysis of the organization, a planned relaunch of the Heard of the Herd competition, creating a new mission and vision statement, along with four pillars representing the cornerstone for achieving the mission are building blocks for the strategic direction moving forward. On top of all this, there is so much more, and encouraged all to peruse the inside front cover of the report book to see the impact on the dairy and Holstein industry. She conveyed how proud she is of what has been achieved and realizes it comes from a lot of hard work and people. She thanked the team, particularly Adrian Vander Wielen for 33 years of incredible service as he is retiring June 15th. Furthermore, Merina thanked the rest of team for stepping up while Adrian was off for three months, the Board and President Johnston for their

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Financial Report:

direction, knowledge, hard work, open ears, open minds, and open to discussions. Lastly, she thanked the members for their trust in making the Branch the best organization it can be. A Past President breakfast held earlier was a good opportunity to share discussions, look at what they’ve built, how to use strengths they brought, their ideas, comments and discussions. The 2018 audited financial statements of the Ontario Holstein Branch were reviewed by Vice-President Brad Lowry, which were approved by those members in attendance. The membership approved a motion to accept the auditor recommended by Holstein Canada, following completion of the RFP tendering process, for 2019. The 2019 Ontario Holstein Branch budget was presented and reviewed.


Tara Bullock presented four resolutions, of which three were approved by the membership. 1. Ear Tags Whereas there have been numerous issues with ear tags breaking and/or falling out; and whereas it is causing a tremendous amount of frustration amongst our breeders; and whereas it is detrimental to our identification system, both for Holstein Canada and the CCIA database; Therefore be it resolved that Holstein Canada find a solution to the unacceptable problem of ear tags breaking and/or falling out. Motion by: Glen McNeil

Seconded by: Dave Johnston


2. Mobile Phone App Whereas an app for your phone or tablet to register calves would be a one-stop shop and thereby quicker and easier; and whereas a member would login into their account via the app, allowing all information to be uploaded immediately and easily, and with the potential to provide the option of scanning ear tag data directly with a cell phone; and whereas photos are an important option for ensuring accuracy for both Holstein Canada and CCIA’s identification systems, and an app would allow photos to be uploaded more efficiently and effectively to a pedigree; Therefore be it resolved that Holstein Canada develop an app to allow easier registration of animals. Motion by: Cole Verburg

Seconded by: Ron Greaves


3. Pricing for Extended Pedigrees Whereas sales play an important role in our dairy industry; and whereas a percentage of Holstein Canada’s revenue is made by sales (i.e. transfers); and whereas it is beneficial for buyers to see the official extended pedigree; and whereas a large percentage of the sales managers are Holstein Canada members; Therefore be it resolved that the price per extended pedigree be discounted for bulk orders for Holstein Canada members, with a bulk order of 30 pedigrees or more, the price be reduced from $10 per pedigree to $5 per pedigree. Motion by: Jason Millen National Report:

Seconded by: Cameron Stockdale


Harry Vander Linden, President of Holstein Canada (HC), brought greetings to the meeting on behalf of the National organization, stating it was a privilege and honour for him to do so. He acknowledged some of the Holstein Canada Past Presidents in the crowd and that this was his ninth and final Branch meeting he has attended on his cross-country tour. Harry conveyed that HC is closely involved with Dairy Farmers of Canada (DFC) on working together to educate consumers. Classifiers conducting Animal Assessments for proAction was a two-year contract, with HC now in a four-year deal. At this time, Harry introduced his Board of Directors. He thanked the Ontario Branch for their collaboration as yesterday they sat down with the Ontario Board to hear their concerns. Another

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opportunity for input comes in a few weeks when they meet again for the Joint National Branch workshops. He thanked Sandy O’Hara as Past President and Dave Johnston as President of the Ontario Branch for their work on behalf of the membership and welcomed Tom Hawman as Sandy’s replacement on the Board. Harry expressed how great it is to visit with the young people in the industry with the National Board having an opportunity to attend the Inter-County Judging Competition last July as well as making the rounds at the TD Classic at the time of the Royal. Ann Louise Carson, CEO of Holstein Canada, stated how great it is to be attending, introduced some colleagues from the office, reviewed statistics for 2018 over 2017, pointing out two record years for registration and classification. HC is in the business of supporting members to make their herd as profitable as possible. Ontario has a three percent increase in registration and status quo for classification. Genetic improvement is a long-term gain; challenges are dealing with a long-term gain in the industry with a short-term mentality. She thanked everyone for their support. Cattle Assessors are trained observers and do an incredible job. New for 2019 for March 1st – three new ‘web’ awards, Daily Production Champion: top value per day of life; Outstanding Production Champions: top production values by age; Herd of Distinction Award: total lifetime production of animals in the herd completing a lactation that year. These are based on lactations completed in the previous calendar year, files can be filtered by different criteria, and total production for the entire lactation is indicated. Ann Louise also went over classification changes as of February 4th, 2019. At this time, Carolin Turner, HC National Classification Coordinator, brought meeting up-to-date on these changes. She is always available to speak at club, barn, 4-H or producer meetings. A break in the report was permitted so that the Outstanding Service Award for Ontario Dairy Woman could be presented at this time. Ann Louise reconvened with her report recognizing their Young Leaders’ Program for ages 19-30 and all the facets this program encompasses for youth wishing to take part. She thanked the Holstein Ontario Branch for sending youth to attend the National Convention in PEI. Holstein Canada continues to support youth at the TD Classic show at the time of the Royal Winter Fair. At their walkabout amongst the participants in the barn, she found the 4-H’ers inspiring to talk to and amazed at their knowledge of issues facing the dairy industry. Deadline for voting for Cow of the Year is March 1st and Ann Louise encouraged all to do so. She also promoted the upcoming HC National Convention in PEI from April 24-27, 2019. A panel discussion on show classes and ages will take place with everyone to come and express their thoughts on issue. She thanked the Ontario Branch team for their support, and wished Ontario Branch Field Rep Adrian Vander Wielen, all the best as he sets to retire on June 15th. Dave thanked Harry and Ann Louise for their informative report. Outstanding Service Award for Ontario Dairy Women:

Dave welcomed members of Ontario Federation of Agriculture (OFA). After outlining this year’s winner’s tremendous accomplishments, Karen Velthuis announced Deb Knapton as the ninth winner of this annual award. Karen, along with the four other previous winners, Sandy O’Hara, Nancy Beerwort, Ruth Vogel and Barb Fraser, presented Deb with a print and a bouquet of flowers.


Hans Pfister introduced a number of guests attending the Branch Meeting.


A representative from Darling Mutual Insurance spoke at this time. Lunch was enjoyed by all. Michelle Toro, Olympic bronze medalist in swimming, spoke of the long journey she traveled that made arriving at her destination even more special. Her insightful and inspiring story was gratefully shared with the audience. Afterwards, they had an opportunity to take pictures with her medal and talk to her.

2018 Ontario Dairy Youth Lorenz Guntensperger, Stephanie Murphy and Scott Groniger all gave presentations to the meeting on their Award Winners: farm operations. Angela Howard, who accompanied the group to Madison, presented an overview from

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West-Central Ontario winner Jennifer Peart, who was unable to attend. Plaques were presented to the group. President Dave Johnston was presented with a gift of appreciation for serving his term as President this past year. Sandy O’Hara was presented with a Past President pin at this time. Dave thanked everyone stating it’s been a tremendous honour to serve as President. He also thanked EastGen for their sponsorship of the Evening of Excellence.


2020 Holstein Cole Verburg invited all to attend the 2020 Ontario Branch Annual Meeting to be in held at the Ontario AGM: Ambassador in Kingston, February 25-26th. He also encouraged everyone to use the Official Judges’ Lists when choosing Judges for shows. Door Prize:

Karen Velthuis won a charming country print.


The meeting was adjourned at 3:00 pm. (Cole Verburg)


Merina Johnston, General Manager Holstein Ontario Tuesday, February 26, 2019 During a special awards extravaganza the previous evening, the following awards were presented: Heart of the Heart winner (Hyden Blitz Pizza EX-92-6E-CAN 2*), All-Ontario, and Gay Lea Production awards. Entertainment for the evening was provided by Celtic Group “Hunt the Hare”. Wedneday, February 27, 2019 Master Breeders were recognized at the EastGen Evening of Excellence, which took place after the AGM at 6:30 p.m., followed by the Fun Auction.

Results of Resolutions carried at 2019 Ontario Branch Annual Meeting 1. Be it resolved that Holstein Canada develop an app to allow easier registration of animals. Over the summer, Holstein Canada had a co-op student begin work on a consumer mobile app, which resulted in the development of a basic Animal Search prototype version. The next step is for the Holstein Canada development team to continue the work on the prototype to develop login, registration and transfer functionality. At this time, we do not have any estimated delivery timelines. 2. Be it resolved that Holstein Canada find an acceptable solution to the problem of ear tags breaking and/or falling out. Holstein Canada is working closely with the tag manufacturer, Allflex, investigating all concerns. From these investigations, Allflex recommended a modification to the tag design to improve its overall performance and address the new challenges encountered with the Ultraflex RFID Xlarge Panel tag sets. The main areas to be modified are the back of the male tag, making a larger tag surface on the top tag portion, increased thickness around the transition from panel to stem, and a slightly longer stem. Tag modifications are in the testing phase through monitored animal trials. The testing and approval process could take up to six months. An article ‘Addressing Tag Retention Issues’ appeared in the November/December issue of info Holstein. 3. Be it resolved that Holstein Canada make the price per extended pedigree discounted for bulk orders for Holstein Canada members, with a bulk order of 30 pedigrees or more reducing the price from $10 per pedigree to $5 per pedigree. Holstein Canada has taken note of this resolution for future discussions on pricing review and or strategy discussions. In addition, their Breed Advisory committee will be taking an in-depth look at extended pedigrees overall.

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Resolutions to be Discussed at 2020 Ontario Branch Annual Meeting 1. Resolution submitted by Corrcroft – Northumberland County – East-Central District Whereas there has been increasing interest in the Beta Casein Genotype A2A2, and; Whereas there has been increasing interest in genomic testing animals by Holstein Canada and many A.I. companies, and; Whereas some Holstein Canada members have started to use exclusively A2A2 sires in their breeding programs, and; Whereas two animals that both have the A2A2 genotype will result in 100% A2A2 progeny, and; Whereas Holstein Canada currently recognizes unique traits on pedigree without the requirement of added genetic testing, including identifying offspring as Red Carrier when a red and white animal is mated to a black and white animal; Therefore, be it resolved that when dam and sire have both been determined to be A2A2 for the Beta Casein gene by an accredited organization, all subsequent offspring of that dam and sire be automatically designated A2A2 on pedigree without the further requirement of genetic testing. 2. Resolution submitted by SR – Simcoe County – East-Central District Whereas a national livestock traceability process plays an important role in the protection of our dairy industry into the future, and; Whereas farmers have a responsibility to follow traceability guidelines and regulations; Therefore, be it resolved that the DairyTRACE initiates the process to have the ear tag number from shipped animals associated with the cheque stub and/or receipt, to ensure traceability is maintained. 3. Resolution submitted by Howatthaven – Huron County – Western District Whereas Semex and Recombinetics have partnered to develop a precision breeding program, which requires editing of the genomes of these animals, and; Whereas a precision breeding program may then be perceived as producing genetically modified animals, and as a result, the perception may be that the milk produced by Canadian dairy producers would come from genetically modified animals, and; Whereas consumers have a negative perception associated with genetic modifications in relation to their food, as well as Canadian milk producers wanting to offer a quality product of which the consumer is not afraid, and; Whereas this gene editing would be a first in the Canadian dairy industry, and may bring into question purity of the Holstein breed; Therefore, be it resolved that a task force consisting of industry stakeholders (ie. processors, retailers, producers, breeders, Dairy Farmers of Canada and CFIA) be formed to determine if this is in the best interest of the dairy industry, providing recommendations to either cease gene-editing projects or provide guidelines to regulate and identify the animals involved in gene editing.





• 12 Lactations • 93 Feet & Legs • 92 for Dairy Strength

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Stay tuned

for more details on our winner in our next issue of The Link - Spring 2020

KPMG LLP Commerce Place 21 King Street West, Suite 700 Hamilton Ontario L8P 4W7 Canada Telephone (905) 523-8200 Fax (905) 523-2222

INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Holstein Association of Canada – Ontario Branch Opinion We have audited the accompanying financial statements of Holstein Association of Canada – Ontario Branch (the “Entity), which comprise: • the statement of financial position as at December 31, 2019, • the statement of operations for the year ended, • the statement of change in net financial assets for the year then ended, • the statement of cash flows for the year then ended, • and notes, including a summary of significant accounting policies and other explanatory information. (Hereinafter referred to as the “financial statements”) In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2019, and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter – Comparative Information We draw attention to Note 10 to the financial statements (“Note 10”), which explains that certain comparative information presented for the year ended December 31, 2018 has been restated. Note 10 to the financial statements explains the reason for the restatement and also explains the adjustments that were applied to restate certain comparative information. Our opinion is not modified in respect of this matter. Other Matter – Comparative Information The financial statements for the year ended December 31, 2018, excluding the adjustments that were applied to restate certain comparative information, were audited by another auditor who expressed an unmodified opinion on those financial statements on February 14, 2019. As part of our audit of the financial statements for the year ended December 31, 2019, we also audited the adjustments that were applied to restate certain comparative information presented for the year ended December 31, 2018. In our opinion, such adjustments are appropriate and have been properly applied. Other than with respect to the adjustments that were applied to restate certain comparative information, we were not engaged to audit, review or apply any procedures to the financial statements for the year ended December 31, 2018. Accordingly, we do not express an opinion or any other form of assurance on those financial statements taken as a whole. 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 public sector accounting standards, 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 KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Coopeartive (‘KPMG International’), a Swiss entity, KPMG Canada provides services to KPMG LLP.

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financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit 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 the override of internal control.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusion is based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants, Licensed Public Accountants, Hamilton, Canada February 3, 2020

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See accompanying notes to financial statements.

On behalf of the Board:



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See accompanying notes to financial statements.

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See accompanying notes to financial statements.

See accompanying notes to financial statements.

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HOLSTEIN ASSOCIATION OF CANADA – ONTARIO BRANCH Notes to Consolidated Financial Statements Year ended December 31, 2019

Holstein Association of Canada - Ontario Branch promotes and supports the continuing improvement of the Holstein breed in Ontario for the benefit of the members and the dairy industry. Core functions include education, promotion, youth involvement and industry cooperation. 1. Significant accounting policies:

(a) Basis of accounting: The financial statements have been prepared using Canadian accounting standards for not-forprofit organizations.

(b) Internally restricted funds: The general reserve fund maintains an adequate level of reserves to sufficiently cover all outstanding financial obligations for one 9-month operating cycle. Such obligations would include salaries, storage of technical data, and the completion any current projects. This fund could also be used to suspend the activity levy for a year should there be any disasters in the dairy industry.

(c) Contributed materials and services: Contributed materials and services which are used in the normal course of the organization’s operations and would otherwise have been purchased are recorded at their fair value at the date of the contribution if fair value can be reasonably estimated.

(d) Use of estimates: The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have impact on future periods.

(e) Revenue recognition: Services for membership fees and activity levies are recognized as revenue when service ls rendered. Magazine revenues are recognized as revenues when the issue has been distributed and no significant obligations are remaining. Unrestricted investment income is recognized as revenue when earned.

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

38th Ontario Holstein Branch AGM


2019 Annual Report

1. Significant accounting policies (continued): Financial assets are tested for impairment when indicators of impairment exist. When a significant change in the expected timing or amount of the future cash flows of the financial asset is identified, the carrying amount of the financial asset is reduced and the amount of the write-down is recognized in net income. A previously recognized impairment loss may be reversed to the extent of the improvement, provided it is not greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously, and the amount of the reversal is recognized in net income. (g) Capital assets: Capital assets are stated at cost less accumulated depreciation. Amortization is provided using the straight line method with a salvage value of $5,000 over the useful lives as follows:

(h) Income taxes: Holstein Association of Canada - Ontario Branch is a not-for profit organization under the Income Tax Act and therefore is not subject to either federal or provincial income taxes. (i) Foreign currency translation: Foreign currency transactions are translated at the rates of exchange in effect at the dates of the transaction. Resulting foreign currency denominated monetary assets and liabilities are translated at the rates of exchange in effect at the balance sheet date. Gains and losses translation of monetary assets and liabilities are included in net income. 2. Restricted cash: Restricted cash and cash equivalents consist of the following:

3. Related party transactions: The organization is a provincial branch of the Holstein Association of Canada (“the Association�). Each member of the Association is charged an annual membership fee and a levy that is

38th Ontario Holstein Branch AGM


2019 Annual Report

3. Related party transactions (continued) invoiced and collected by the Association and remitted to the provincial branches pursuant to the by-laws of the Association. Any unpaid amounts at year end are included in accounts receivable. Vehicle insurance and employee benefits are administered by the Association. Due to the structure of the organization, various operating transactions occur between the branch and the Association throughout the year. The organization occupies space in the Associations building and receives accounting services provided by the Association. Total amount paid for rent and accounting services was $15,000 for the year. The related party transactions are recorded at the exchange amount agreed upon by the related parties. At December 31, 2019, amounts due from the Association included in accounts receivable on the balance sheet were as follows:

4. Investments:

The GICs have effective interest rates of 2.10% - 3.24% per annum and mature between May 2020 and May 2023. In the current year, the value of investments internally restricted in the general reserve fund are comprised of GICs, Canadian preferred shares, Canadian and foreign mutual funds and Gay Lea shares in the amount of $593,487 (2018 $538,498). 5. Capital Assets:

38th Ontario Holstein Branch AGM


2019 Annual Report

6. Bank Indebtedness: The organization has an available credit facility on their Visa in the amount of $25,000. The organization had undrawn credit capacity under this facility of $25,000 (2018 - $25,000). 7. Deferred revenue: Deferred revenue represents membership fees, magazine ad revenue, and sponsorships received in the current year that relates to the subsequent year.

8. Internally restricted net assets:

An internally restricted fund, called the General Reserve Fund, was created by the Board of Directors to cover a portion of the financial obligations for a one year period. The fund target is 75% of the operating budget.

9. Financial instruments:

(a) Credit risk: Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The organization is exposed to credit risk resulting from the possibility that a customer or counterparty to a financial instrument defaults on their financial obligations; if there is a concentration of transactions carried out with the same counterparty; or of financial obligations which have similar economic characteristics such that they could be similarly affected by changes in economi conditions. The organization’s financial instruments that are exposed to concentrations of credit risk relate primarily to its investments and accounts receivable.

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

(b) Liquidity risk: Liquidity risk is the risk that the organization will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as result of operational liquidity requirements, the organization will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset.

38th Ontario Holstein Branch AGM


2019 Annual Report

9. Financial instruments (continued): (b) Liquidity Risk (continued) The organization is exposed to this risk mainly in respect of its accounts payable. The organization’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient cash flows to fund its operations and to meet its liabilities when due, under both normal and stressed conditions. The organization maintains a portion of its invested assets in liquid securities. (c) Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The organization is exposed to changes in interest rates related to its investments in marketable securities. The organization’s primary objective is to ensure the security of principal amounts invested and provide for a high degree of liquidity, while achieving a satisfactory return. The organization mitigates interest rate risk on investments by diversifying the durations of the fixed-income investments that are held at a given time and by investing in fixed income vehicles backed by a chartered bank. (d) Currency risk: Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at year end, investment balances of $160,493 are denominated in US dollars and converted into Canadian dollars at the exchange rate in effect at year end. The organization considers this risk to be acceptable and therefore does not hedge its foreign exchange rate risks. There have not been any changes in the risks described above from the prior year. 10. Correction of error: During the year, the organization determined that they own internally restricted cash that was derecognized in a prior period. As a result, the amounts previously de-recognized have been recognized to account for the correction of this prior year error. The impact results in an increase in restricted cash and internally restricted assets of $54,031 for the year ending December 31, 2018. There is no impact to the statement of operations as a result of this adjustment. 11. Comparative figures: Prior year comparative figures have been updated to conform with the current year presentation.

38th Ontario Holstein Branch AGM


2019 Annual Report

Supporting & Educating









A gift to the Ontario Dairy Youth Trust Fund is a gift to the next generation of agricultural leaders! Your tax deductible donation will make it possible to continue offering rewarding and exciting opportunities to youth. Committed to the development of programs and events that educate, encourage, and assist the young people who are the future, consider donating today. Donate online at www.canadahelps.org/en/dn/10855 OR Mail to Box 610, Brantford, ON N3T 5R4. To make a donation by phone, or to inquire about other ways to give, please call 519-756-8302. Website: ontario.holstein.ca/youth/tf/ Email: ontdairyyouthtrustfund@gmail.com


Thank you Ann Louise Ann Louise,

Congratulations on your retirement! You have so much to celebrate over your illustrious career and we are honoured to have had the chance to work with you in the Holstein industry. Thank you for your passion, dedication, and tireless efforts to Holstein Canada and its members. Wishing you all the best in your retirement,

The Holstein Ontario Team

38th Ontario Holstein Branch AGM


2019 Annual Report

2019 All-Ontario Holstein Competition CLASS



Summer Calf

HOWARD-VIEW UNIX LYNN Howard-View Holsteins


Junior Calf

WINRIGHT SOLOMON ESPRESSO Blondin Sires & Ferme Blondin

CLAIRCREST SIDEKICK BELLINI Scott Werry, Trent Valley Holsteins and Werrhurst Holsteins

Intermediate Calf

CASHELLS DEFIANT LOUIS V Brian Joseph Enright, Diamond Hill Farms and Jaquemet Holsteins


Senior Calf

MS CAUGHT A GLIMPSE-ET Clarkvalley Holsteins and London Dairy Farms

REYNCREST DRM LOVEBUG-ET Select Farm & Export, Gerardo & Jose Gonzalez

Summer Yearling


HAMMERTIME DOORMAN NOVA-ET Dan Hovden, Elmer Weeks, Gerardo & Jose Gonzales, Select Farm & Export and Frank & Diane Borba

Junior Yearling


MAPEL WOOD DOORMAN DANCER Howard-Haven Holsteins and Howard-View Holsteins

Intermediate Yearling


ALL-GLO BYWAY MONTRAL-ET Clarkvalley Holsteins and London Dairy Farms

Non-milking Senior Yearling

ALL-GLO O KOOL TULLY Clarkvalley Holsteins and London Dairy Farms


Junior Breeder’s Herd

Winright Farms

Kingsway Farms

Milking Yearling

IDEE IMAC 645 Elmer Weeks, Frank & Diane Borba and Hodglynn Holsteins

CROVALLEY SOLOMON SPARKLE Aleah Farms Ltd, Ava Doner, Gerardo & Jose Gonzalez, Howard W. Doner and Select Farm & Export

Jr. 2-Year-Old

VOGUE LMF LOVE ACTUALLY David R. Dyment, Justin Hogge and Wadeland Dairy


Sr. 2-Year-Old



Jr. 3-Year-Old


APPLEVUE SOLOMON CIARA Andrew Den Haan, Echo Glen Farm and Sprucetone Holsteins

Sr. 3-Year-Old

FLORBIL DOORMAN LILLY Agriber Societa Agricola Srl, Beckridge Holsteins, Florbil Farms Ltd., Oscar & Eric Dupasquier and Quality Holsteins



ROLL-N-VIEW DEF BOJANGLES Clarkvalley Holsteins

VINBERT KINGBOY BIRDY Ferme Belgarde Inc, Ferme Belgo 2012 Inc., Ferme Vinbert Inc., Kingsway Farms and Silvercrest Farms


STONYWAY GOLDWYN VEE Hodglynn Holsteins and Little Star Holsteins


38th Ontario Holstein Branch AGM


2019 Annual Report

2019 All-Ontario Holstein Competition CLASS



Mature Cow



Longtime Production Cow

MILKSOURCE GOLDWYN JENAY-ET Royal Lynn Holsteins and Up-Ridge Holsteins


Breeder’s Herd

Kingsway Farms

Bosdale Farms Inc.

Junior 4-H Calf

RIVERDOWN ATWOOD ABRIDGET Exhibited by: Serena Allardyce Owner: Riverdown Holsteins

MOUNT ELM ATMOSPHERE PUDDLE Exhibited by: Cooper Smith Owner: Neil & Bryan Anderson

Intermediate 4-H Calf

DUCKETT SIDEKICK OLLIE-ET Exhibited by: Jasmine Uhr Owner: Velthuis Farms Ltd.

MISS OCD UNDENY GEORGIE-ET Exhibited by: Keaton Phoenix Owners: Babydoll Holsteins and Oakfield Corners Dairy

Senior 4-H Calf

CANHOPE BEEMER BRECKETT Exhibited by: Tyler Canning Owners: Ron Canning and Tyler Canning

MS SOLOMON SKITTLES-ET Exhibited by: Ryan Sills Owner: Sillsway Farms

Summer Yearling 4-H Calf

TRINAL UNDENIED LEXIS Exhibited by: Joseph Kapteyn Owners: Arrowhead Dairy and Trinal Holsteins

CHERRY CREST BRINGER OF RAIN Exhibited by: Isabella Poirier Owner: Cherry Crest Holsteins

Junior Yearling 4-H Calf

MAPEL WOOD DOORMAN DANCER Exhibited by: Madison Dyment Owners: Howard-Haven Holsteins and Howard-View Holsteins

REYNCREST AVALNCHE LUSHA-ET Exhibited by: Brendan Velthuis Owner: Velthuis Farms Ltd.

Jr. All-Ontario Junior – Senior Calf

CANHOPE BEEMER BRECKETT Ron Canning and Tyler Canning

SMITHDEN CAPITAL GAIN ELLIE Ashley Smith and Smithden Holsteins Inc.

Jr. All-Ontario Summer – Senior Yearling

MAPEL WOOD DOORMAN DANCER Howard-Haven Holsteins and Howard-View Holsteins

COMESTAR LAMAGOLDY GOLDWYN Howard-Haven Holsteins and Howard-View Holsteins

Red & White Calf


CHERRY CREST PENTAGON Cherry Crest Holsteins

Red & White Yearling

KNONAUDALE LULULEMON Ava Doner, Gerardo & Jose Gonzalez, Knonaudale Farms Inc. and Select Farm & Export Services Inc.

CHERRY CREST RHOMBUS Cherry Crest Holsteins

Red & White Jr. Cow



Red & White Sr. Cow

CHANMAR ADONIS MISS RED Century Star Holsteins

VALMAR HEZTRY LANA Allarway Holsteins and C.J. Vanderlip and Sons

Mission Statement “Providing support to youth programs that are available through Ontario’s dairy breed organizations.” Purpose of Committee In 1994, the Ontario Joint Dairy Breeds committee was formed to collaborate resources in order to offer strong dairy youth programs for all dairy breeds. The Toronto Stockyards Fund was developed with dairy industry funding available through the Ontario Milk Marketing Board. In 1999, the committee received the funding that was requested with focus to be put on youth and educational programs for all breeds. Programs presently supported are: Inter-County 4-H Dairy Cattle Judging Competition, Junior Shows, Youth Seminars, Judging Schools, Dairy Sen$e, Recognition Awards, Scholarships, High Herd Certificates and University or College Workshops/Projects. 38th Ontario Holstein Branch AGM


2019 Annual Report

Combined Component Awards 2019

For Highest Fat & Protein Total Kgs. in Ontario BRABANTDALE BALTIKUM VERITE, owned by Brabantdale Farms Ltd., Ottawa Produced as 1 Year Old in 305 days 15,467 kg. Milk 746 kg. Fat 512 kg. Protein CompositeFP 1,258 BCA (Deviation) 415 (+175) Milk 537 (+274) Fat 430 (+191) Protein SUNNY PLAINS CG WINNIE, owned by Sunny Plains Farms, Joyceville Produced as a 2 Year Old in 305 days 16,129 kg. Milk 777 kg. Fat 542 kg. Protein CompositeFP 1,319 BCA (Deviation) 381 (+122) Milk 492 (+203) Fat 401 (+140) Protein


NEWMORNING GRENWY LOLIPOP 1827, owned by New Morning Holsteins, Monkton Produced as a 3 Year Old in 305 days 18,325 kg. Milk 916 kg. Fat 633 kg. Protein CompositeFP 1,549 BCA (Deviation) 368 (+111) Milk 501 (+218) Fat 398 (+126) Protein GOULDHAVEN LIQUID G BRITTANY, owned by Gouldhaven Farms, Foresters Falls Produced as a 4 Year Old in 305 days 16,430 kg. Milk 937 kg. Fat 565 kg. Protein CompositeFP 1,502 BCA (Deviation) 337 (+31) Milk 515 (+186) Fat 362 (+48) Protein CROVALLEY WINDBROOK ABELLA, owned by Crovalley Holsteins, Hastings Produced as a 5 Year Old in 305 days 20,472 kg. Milk 979 kg. Fat 694 kg. Protein CompositeFP 1,673 BCA (Deviation) 417 (+172) Milk 535 (+268) Fat 442 (+184) Protein JOALFARMS BAXTER RIANNA, owned by Allan & Lorne Vis, Murillo Produced as a Mature Cow in 305 days 20,229 kg. Milk 984 kg. Fat 667 kg. Protein CompositeFP 1,651 BCA (Deviation) 396 (+135) Milk 521 (+227) Fat 412 (+137) Protein

2019 Ontario Outstanding

Dairy Woman Service Award The Outstanding Dairy Woman Service Award winner for 2019 was Deb Knapton. Deb was recognized for her efforts and accomplishments to serving, promoting and enhancing the dairy industry at our 2019 AGM in Peterborough. Deb Knapton, 4th from left, with her husband, Merlin, accepts the 2019 Outstanding Service Award for Dairy Women from past winners (l to r) Sandy O’Hara, Barb Fraser, Ruth Vogel, Karen Velthuis and Nancy Beerwort.

38th Ontario Holstein Branch AGM


2019 Annual Report

Thank You to our Sponsors Annual Meeting Sponsors • EastGen – Evening of Excellence Sponsor • Grenville Mutual Insurance – Lunch Sponsor • O’Farrell Financial Services Inc. • Hartington Equipment • Farm Credit Canada • Kingston Fall Fair • Ceva Animal Health Inc.

• Scotiabank • Gananoque Chev • Asseslstine Transport • Frontenac 4H Association • TCO Agromart Ltd. • TD Canada Trust • Frontenac Milk Committee • Frontenac Federation of Agriculture • Willows Agriservices

• Seed Solutions • St. Lawrence Vets • Syngenta • Green Tractors Inc. • Gay Lea – Gift Baskets for Tour Hosts • Quality Seeds Ltd. – Jackets for Tour Hosts • Maizex Seeds Inc. • Grand Valley Fortifiers

• Limitless Creations • Tangled Garden – Anjela Verburg • Rooseburg Farms Inc. • Ashes to Art – Myranda LaFrance • Glocca Morra Studios – Rhonda Evans • Velthuis Farms Ltd. • Pioneer • Riverhead Brewing Co.

• Glengarry County Holstein Club • Dundas County Holstein Club • Leeds & Grenville County Holstein Club • Lanark County Holstein Club • Renfrew County Holstein Club • Prescott County Holstein Club • Stormont County Holstein Club • Carleton-Russell County Holstein Club

Fun Auction • Edward Morwick • Holstein Canada • Holstein Ontario • EastGen • Murray Howes • Estate of Bertram Stewart • TripleP Promotions – Kera Phoenix • Maple Country Home & Farm Ltd. • Jensen/ Wilton Cheese

Yearly Holstein Ontario Sponsors • EastGen

• Dumfries Mutual Insurance

All-Ontario Holstein Competition, Junior Shows, Harness Cards, TD Canadian 4-H Dairy Classic, Dairy Sen$e, Shows, Judging Schools

West-Central Junior Show

• John Deere

• Bruce Witmer Western Junior Show

Inter-County Judging Competition, Twilight Meeting Machinery Lease

• Gay Lea

• TD Canada Trust

• Select Sires GenerVations

Provincial Production Awards, Product

TD Canadian 4-H Dairy Classic

Inter-County Judging Competition

• Holstein Canada Trade Show Partner, Dairy Sen$e, TD Canadian 4-H Dairy Classic

• Grenville Mutual Insurance

• Quality Seeds All-Ontario Competition

• Vicki Fletcher Photography

Eastern Junior Show

All-Ontario Competition

38th Ontario Holstein Branch AGM


2019 Annual Report




Darcroft Larenwood Maplebrough Wilmarlea Embro, Ont.

Drumbo, Ont.

Uxbridge, Ont.

Embro, Ont.

Proud Holstein Ontario Breeder

38th Ontario Holstein Branch AGM


2019 Annual Report

The Link recently published its 40th issue! The magazine has been around for a decade and we look forward to celebrating this milestone in the upcoming issue. We wish to thank our faithful advertisers, some of whom have been advertising with us since day

2013 2014 2010 2011 2012

one; we would not exist without your support. Thank you also to


our loyal readers. The mandate of

2018 2019 2015 2016 2017

connect our members with the

Linking over 13,000 readers four times per ye

the magazine has always been to happenings in the Holstein industry, and in looking back over 40 issues of content, we can confidently say we have been successful in achieving our goal. Through all of you, we have witnessed the ups and downs of the industry. Like many in media, we have had our struggles. But through it all, we have done our best to stay current, relevant and entertaining. It has been an absolute pleasure to share our magazine with you over the past decade. We look forward to an exciting time ahead!

Andrea Emond, Editor















Board of Directors










Passionate Farmers. Prosperous Breed. Progressive Industry.

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

Passion. Integrity. Teamwork.

Youth Activities. Education. Breed Promotion. Industry Advocates.

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