2 SCA 2011 Annual Report - Saskatchewan Publications...

44

Transcript of 2 SCA 2011 Annual Report - Saskatchewan Publications...

2 SCA 2011 Annual Report

Table of Contents

3 Mission Statement/ Corporate Governance 4 Board of Directors

5 Map of districts

6 SCA committees, members and Sask CCA reps - SCA staff

7 Chair report

8 CEO report

9 SCA committee reports - Animal Health - Communications - Environment - SBIDF - Traceability Workinng Group

14 Sask Agriculture Hall of Fame report

15 Audited Financial Statements

24 2011/2012 budget

26 CCA report

29 BCRC report

30 Canada’s Beef Cattle Industry Science Cluster report

32 Beef InfoXchange System Report

33 Verified Beef Production™ Report

34 Canada Beef Inc.Report

36 CCIA report

37 AGM - Annual General Meeting Agenda - Minutes from Annual General Meeting - Resolutions for SCA 2012 AGM

SCA 2011 Annual Report 3

Mission stateMent

To promote the well being of all production sectors of the Saskatchewan beef cattle industry through

effective representation from all regions of the province.

Corporate GovernanCe

The Saskatchewan Cattlemen’s Association (SCA) is an agency established under the Agri-Food Council, complies with the provisions of The

Agri-Food Act, 2004 and operates according to The Cattle Development Plan Regulations.

4 SCA 2011 Annual Report

District 1Jack Hextall (outgoing)Grenfell Ryan Beierbach (incoming)Whitewood

District 2Bill Jameson Moose Jaw

District 3ARyan Thompson (outgoing) Ceylon Mark Elford (incoming)Wood Mountain

District 3BLarry GrantVal Marie

District 4Rick Toney Gull Lake

District 5Fred Lansdall Leross

District 6Howard ToewsWatrous

District 7Paula Larson D’Arcy

District 8Bruce Holmquist (outgoing)Kinistino Michael Spratt (incoming) Melfort

District 9ARyan Sommerfeld Medstead

District 9BDavid Stuart Edam

Past Chair Bob Ivey (outgoing)Ituna Jack Hextall (incoming)Grenfell

SCFAPhilip LynnViscount

SCFABrad WelterViscount

SSGARyan Beierbach (outgoing) Whitewood Lloyd Thompson (incoming)Carnduff

SSGADoug GillespieNeville

Back row (l to r): Philip Lynn, Larry Grant, Paula Larson, Brad Welter, Doug Gillespie, Ryan Sommerfeld, Rick Toney, Bruce Holmquist.Front row (l to r): Howard Toews, David Stuart, Fred Lansdall, Ryan Beierbach, Jack Hextall, Ryan Thompson, Bob Ivey. (missing – Bill Jameson)

District 1

District 2

District 5

District 8

District 6

District 3A

District 3BDistrict 4

District 7

District 9A

District 9B

SCA 2011 Annual Report 5

Saskatchewan Cattlemen’s Association Districts

Weyburn

Maple CreekSwift Current Moose Jaw

Regina

Yorkton

Saskatoon

Lloydminster

North Battleford

Prince Albert

6 SCA 2011 Annual Report

SCA Committee Members - Sask CCA reps - SCA staff

Animal HealthRyan Beierbach – ChairDoug GillespieFred LansdallPaula Larson

Audit and FinanceLarry Grant – ChairHoward ToewsBill JamesonPhilip Lynn

CommunicationsDavid Stuart – ChairRyan SommerfeldJason DeanRyan Beierbach

ExecutiveJack Hextall – ChairVice Chair: Bruce HolmquistPast Chair: Bob Ivey Finance Chair: Larry Grant Member at Large: Bill Jameson

ResearchRyan Thompson – ChairTim OleksynDuane ThompsonRyan Sommerfeld

SBIDFBrad Welter – ChairHoward ToewsBob IveyKim Hextall

Traceability Working GroupRick Toney – ChairBrad WelterBruce HolmquistPaula LarsonPat Hayes - CCA Liaison

EnvironmentReg Schellenberg – ChairRyan ThompsonRyan SommerfeldEric LawrenceLynn Grant – CCA Liaison

Jack HextallPat HayesLynn GrantReg Schellenberg

CEOKeith RobertsonPerdue

Admin AssistantCrystal SiemensMartensville

Policy AnalystCraig DouglasSaskatoon

Communications SpecialistBill StrautmanDalmeny

BookkeeperJamie BlacklockDundurn

SCA CommiTTee memberS

SASkATChewAn CCA repreSenTATiveS

SCA STAff

SCA 2011 Annual Report 7

Jack Hextall, Chair

At the start of 2011 SCA worked closely with our governing body, the Agri-Food Council, to deliver a comprehensive

governance session for the SCA board. Governance training is very important and will be continued this year. Agri-Food Council also hosted a two day event in March for its various commissions and boards. The first day was on governance and was very good.

The weather played a major role in SCA’s work this year as there were two announcements dealing with the extreme flooding some producers faced again this spring. We were encouraged that the initial programming was extended to help cover this year’s extreme weather. Cow-calf producers in the southeast saw some help from the Provincial Disaster Assistance Program to help deal with some devastating losses from a late spring snow storm. That program needs the caps extended so that larger producers qualify the same as smaller producers. Also the caps on the Feedlot Infrastructure Program penalized the larger feedlots and SCA saw no movement on that issue.

SCA was engaged in the Growing Forward II consultations with a private meeting of federal and provincial officials. It was a good forum to present and discuss our positions with the people that will be shaping the next Growing Forward suite of programs. SCA will be very engaged on the bi-lateral negotiations of Growing Forward II that will start in 2012.

SCA made a presentation to the federal Finance Committee on pre-budget consultations when they were in Saskatchewan. As part of our position we were putting forward the concept of cost-shared price insurance, much improved forage insurance and a priority on research.

On the provincial side we are working on Premises ID, price insurance and forage insurance. These issues have been on the plate for a long time now and we have seen very little movement on them. We have the second largest herd and we are growing with respect to other jurisdictions. Unfortunately Saskatchewan is sitting back and letting others provide that leadership. We should be taking a leadership role on these and other issues to

make sure we are prepared for challenges that are sure to come.

Research has been identified as a priority for SCA and the national cattle industry. Research and innovation is what will drive this industry into the future. SCA has been working to establish close working relationships with the U of S, WBDC, ADF and BCRC. Increased research in the area of forages is extremely important.

SCA has made a commitment to the U of S Beef Cattle Research and Teaching Unit as well. The provincial government has undertaken a review of beef and forage research in the province and SCA will be fully engaged in that review. We have started down the road of a more collaborative model for research and will be working hard to keep moving in that direction.

There have been a number of issues of the Saskatchewan Cattlemen’s Connection magazine published. This communication tool of SCA has been well received and provides good information about what is going on. SCA is looking at expanding the number of issues.

Canada Beef Inc. has become a reality after much work. Brian Ross and Brad Wildeman need to be recognized and thanked for all their work on behalf of the Saskatchewan beef cattle industry. The process was long and sometimes very frustrating but well worth the effort. SCA took a leadership role nationally in this endeavour and are gratified to see the results.

Another first for SCA was what has been called the annual beef industry assessment meeting. SCA executive and research chair met with the Deputy Minister and all of the Ministries top staff. It was a day to discuss policy initiatives, where they are at and how to move them forward. A number of things were identified as either impediments or improvements and it was an excellent way of making sure everyone is up to speed and aware of how things may get accomplished. SCA is looking forward to making this an annual meeting and thanks goes to the Deputy Minister and her officials for making this happen.

Saskatoon hosted a Traceability Summit the beginning of September and it looks like industry and government were able to find a way forward that is acceptable to all. At the same time SCA met with the Saskatchewan Conservative Caucus of MPs. It was a good initial meeting to introduce our policy initiatives. SCA followed up later in the month in Ottawa with many individual meetings with our MPs when we attended CCA’s BBQ on Parliament Hill. These meetings are so important to educate and get the industries’ messages to the decision makers. There is great value in these initiatives.

The WTO decision on the COOL challenge was a clear victory for the Canadian industry. There are ongoing advocacy initiatives to try and bring a resolution to this.

Our CEO was on medical leave for a period of time and Jamie Blacklock stepped in as interim CEO. Thanks Jamie for a job well done. Also welcome back Keith and I would like to thank all our staff for their contribution and dedication to this industry.

This will be my last report as chair of SCA. A lot has happened since I started this role more than three years ago. SCA was formed to bring industry together to speak with one voice and that is as important now as it ever has been. The new board and executive will face many challenges just like the old board and executive. It is very important that board members recognize that they are there to act in the best interests of the whole Saskatchewan industry and with that being top of mind I am sure the board will meet the challenges that they will face in the future.

8 SCA 2011 Annual Report

Keith Roberts, CEO

Before I get into the association activities I would like to express a big thank you to my staff for stepping up to the plate

while I was away on medical leave this year. You are a great bunch of folks - your work and work ethics are greatly appreciated and do not go unnoticed.

The SCA has seen a change in the policy analyst position in 2011 and welcomes Craig Douglas to the SCA team. Craig’s style and abilities have already proven to be an asset to the association. Bill Strautman has effectively and efficiently managed our communications requirements this past year and he continues to streamline and perfect that department. Crystal Siemens handles all of our office administration details, levy remittances and is the friendly voice you get at the end of the phone when you call in. Jamie Blacklock has taken care of our bookkeeping requirements for another year and a big thank you to her for handling the interim CEO position while I was on medical leave.

The association has had a busy year again. The Beef Cattle Research and Teaching Unit at the University of Saskatchewan has been one of the many initiatives worked on this year. SCA has a position in support of moving the facility to a new site near Clavet. The University has now purchased the land and SCA and the university have been in discussions to see what part we might play in this initiative.

Assistance for Feedlot Infrastructure Damage - While it has been quiet as of late, we are still working with Government to try and find ways for the feedlots to obtain some assistance with the rebuilding of infrastructure damage from the excess moisture issues of 2010 and 2011. It is estimated about $25 per head of capacity is what it would cost to rebuild the damages. SCA and government have been looking at ways to have this covered under the Provincial Disaster Assistance Program.

The big stumbling block is a $2 million cap of gross annual sales, which leaves most feedlots unable to access this program. Work and communications with government on the issue continues.

Cattle Price Insurance Program (CPIP) – There was some renewed interest at the provincial and federal level to put CPIP back on the table for more discussion. The SCA’s position has not changed and we still are supportive of the fed, feeder and calf components all on a cost-shared premium similar to crop insurance. This file continues to be slow moving but is ongoing. SCA continues to work with CCA and the other provincial associations and the levels of governments to move this file forward.

Flooding in 2011 continued in some areas of the province for most of the summer, while other areas saw little to no rain and ended the year pretty dry. Hard to believe but now we are watching the west side of the province again for lack of moisture. The announcement of the PDAP did help some of the issues but as mentioned the caps are an issue for the feedlot infrastructure damages.

Premises ID – SCA has a motion passed to support Premises ID and to move to using the Alberta system. While the government has not been supportive of the mandatory move that the federal government and Alberta have taken, they have indicated that they want the province to stay in step from a competitive standpoint. The SCA will continue to work on this file and remains supportive of the initiative.

Finance and Audit – Levy collection and remittance continues to be monitored since it was taken over in August 2010. While there are inconsistencies within the province on interpretations of the process, there are equally as many between the provinces on interprovincial trade. SCA is working with

the National Agency - now Canada Beef Inc. - to weed out these inconsistencies and better streamline the process. In addition, SCA is developing an audit process and procedure for levy remittance and will start random audits on remitters in 2012.

Along with all the activities the office moved this year as well. On September 1st 2011 the office moved to its new location at 310 – 820 51st Street East, Saskatoon, SK S7K 0X8. The phone numbers remain the same.

It has been an interesting year at the SCA to say the least, with issues that come and go and those that never go away. Until next time keep well and keep in touch.

a

SCA 2011 Annual Report 9

Animal Health Ryan Beierbach, Animal Health Committee Chair

Canada biosecurity initiative

The CFIA in conjunction with the CCA is working on a voluntary Biosecurity initiative. The purpose of the document is to present a set of guiding principles to represent a biosecurity standard for Canada’s beef cattle industry.

The application of the standard is intended to prevent introduction of new diseases and to reduce the prevalence of existing diseases in beef cattle operations in Canada. It deals with beef cattle operations from the cow-calf producer to feedlots.

We provided input on what would be applicable and beneficial to Saskatchewan producers. I have not received the final document yet, but some of the key points we focused on were that it needs to be voluntary, the cost to producers needs to be minimal, the producer needs to see benefits, producers need to be able to control access to our land to reduce risk. (Access laws may need to be changed to accomplish this).

pnwer Animal health Conference fmD outbreak simulation

I attended a Cross Border Animal Health Conference in Portland, Oregon. The conference was co-chaired by Greg Douglas, our provincial veterinarian and focused on what would happen if we had a FMD outbreak in Canada and the US. We also discussed what could be done to make cross border trade go more smoothly. Committees were set up to work on E-Certificates to improve the efficiency of cattle flowing across the border and look at how zoning could mitigate the impact of a disease outbreak

pathogen reduction initiative

I participated in a webinar discussing pathogens in food that cause illness. A baseline survey is being done to determine the prevalence and then an initiative will be implemented to decrease the incidence and economic impact of food borne illness by reducing pathogen contamination of meat and poultry. The goal is to maintain and expand market access potentials in light of changing international market requirements for pathogen control.

Zoning in the event of a disease outbreak west hawk Lake initiative

In order for zoning to be more effective, we need our trading partners to recognize this as a control measure and not close their border to imports from all of Canada when a disease occurs in part of Canada where it can be effectively segregated.

West Hawk Lake makes it possible to split Western and Eastern Canada into two zones. We are discussing this with our US counterparts to be more prepared when a disease outbreak occurs in Canada or the US.

National Farm Animal Care Council Code of Practise is being updated. Kim Hextall is representing us on the committee.

animal protection regulations –

The Saskatchewan Animal Protection Act was revised in 2010-11 and we provided input to ensure cattle producers were not disadvantaged by any of the changes.

Our committee discussed issues that we could focus on that would benefit Saskatchewan beef producers. We decided that increasing the awareness of BVD would benefit producers. We also decided that it should be a priority to do what we can to reduce the risk of TB infection.

Our industry is profitable now, it’s important to do what we can to decrease the risk of a disease outbreak from an animal health perspective as well as an economic perspective. Our industry can benefit from increased knowledge about how to improve animal health.

With animal rights activists becoming more aggressive, it will become increasingly important in the future for us to be able to demonstrate that we are taking care of our animals and raising them humanely. Going forward, we need to take a proactive approach and do what we can to be prepared for any animal health and disease issues rather than waiting until we have a problem and reacting.aa

10 SCA 2011 Annual Report

The SCA Communications Committee includes Ryan Sommerfeld, Jason Dean and Ryan Beierbach, with David

Stuart as chair. The staff person assigned to the committee is Bill Strautman, SCA Communications Specialist.

Near the end of 2010, the first issue of the Saskatchewan Cattlemen’s Connection arrived in cattle producers’ mailboxes across Saskatchewan. The magazine is the primary communications tool for the SCA and in 2011 five issues were published.

SCA regulations require that cattle producers be informed by mail of three events throughout each year: the deadline for director nominations; the time and place of district elections/district meetings along with profiles of candidates running; and the time and place of the annual general meeting. The SCA is also required to publish resolutions passed at the district meetings that will be voted on at the AGM.

For the SCA to meet these requirements by individual mailouts, costs would run around $50,000 per year. By delivering this information with a magazine that is supported by outside advertising, the SCA is able to eliminate this cost and is actually posting a small profit.

The contract SCA has with the magazine publisher allows us to put out additional issues. The publisher has expressed enough confidence in the magazine that for 2012 the SCA will produce eight issues. Content will include SCA news, industry news, production and business management articles, profiles and other items of interest to Saskatchewan beef cattle producers.

The magazine is Saskatchewan’s largest circulated cattle industry magazine, with a mailing list of more than 20,000 producers. It is also posted to the SCA website.

The SCA provides a monthly Industry Update to anyone in the industry that has provided their email address to the office. Industry Updates are posted to the SCA website, as well. The

SCA also forwards CCA Headlines to our mailing lists every week. The CCA Headlines highlight articles in the local, national and international media relating to the beef cattle industry.

The SCA website – www.saskbeef.com – provides a wide range of current and archived information on the association, upcoming events, industry information and other topics.

In January 2011, the Second Annual Saskatchewan Beef Industry Conference was held at the Saskatoon Inn. The SBIC is hosted by five partners – the SCA, the Saskatchewan Stock Growers Association, the Saskatchewan Livestock Association, the Saskatchewan Cattle Feeders Association and the Saskatchewan Beef and Forage Symposium Committee.

Speakers made presentations on a wide range of topics relating to the beef cattle industry. Various associations held annual meetings during the week, including the SCA annual general meeting on the afternoon of January 21st.

In the fall, district meetings and elections were held the last full week of October. Rather than stretch the eleven meetings out over three weeks as in 2010, we ran two meetings a day, one in a south district and one in a north district, for one full week. The final meeting ran Monday night in Watrous.

Guest speakers from the Canadian Cattlemen’s Association included: Travis Toews, president; Martin Unrau, vice president; John Masswohl, director of government and international relations; Ryder Lee, manager of federal/provincial relations; Dennis Laycraft, executive vice president; Rob McNabb general manager of operations; and Brad Wildeman, chair of Canada Beef Inc. Representatives from CCIA, including Brian Anderson, Nick Anderson and Dee Valstar, also attended meetings and were available to answer questions from producers.

Elections were held in Districts 1 and 3a, with Ryan Beierbach from Whitewood and Mark Elford from Wood Mountain winning their respective districts. Michael Spratt from Melfort won District 8 by acclamation. Current directors

from Districts 4, 6 and 9b – Rick Toney, Howard Toews and David Stuart – returned to their positions unchallenged. Next year, Districts 2, 3b, 5, 7 and 9a will hold elections.

The SCA would like to thank Jack Hextall, Ryan Thompson and Bruce Holmquist for all the time and effort they spent representing Districts 1, 3a and 8.

The SCA was a significant sponsor for Agribition in November 2011and it hosted The FIfth Annual Cattle Industry Reception on Thursday of Agribition week. Farm Credit Canada and JGL sponsored beef on a bun, a few short presentations were made and the large crowd of producers, industry and government staff had time to mingle and socialize throughout the evening.

Various directors manned the SCA trade show booth throughout the week, with Agribition being the first show where the new SCA display was used. The SCA is planning to attend more trade shows in the future and the display has been designed to provide flexible messaging, depending on the type of show involved.

A common message is presented on the middle panels, while panels on either end of the display can be changed to provide different messages for cattle producer shows, grain shows or consumer shows.

The SCA wants to promote examples of opportunities for grain and cattle producers to work together, plus provide information to consumers regarding environmental stewardship on Saskatchewan cattle operations, nutritional and health benefits of beef and other positive messages regarding the cattle industry.

The SCA sponsored or supported a number of events in 2011, including the Saskatoon Fall Fair, Agribition, Saskatchewan 4-H and ‘Agriculture in the City’ at the Saskatoon Farmer’s Market.

It has been a pleasure serving again as the chair of the Communications Committee. If you have any suggestions for communications efforts, articles in the SCA magazine or feedback regarding how we can serve you better, please feel free to bring your comments forward.

David Stuart, Communications Committee Chair Communications

SCA 2011 Annual Report 11

Reg Schellenberg, Environment Committee ChairEnvironment

During 2011, Saskatchewan cattle producers were blessed with one of the best years in decades. 2011 will be

remembered as the year of abundant grass and forage production. The native prairie rangeland has not looked this good in a very long time. Water supplies have been replenished and dryland hay production has provided the best hay crop in years.

There have been some challenges with excess moisture in various regions in the province. But overall, the majority of Saskatchewan rangelands look extremely good. The federal and provincial governments are providing over $250 million to support Saskatchewan farms and ranches affected by excess moisture and flooding.

The SCA has been a participant on the Southern Crown Land Conservation Committee. The SCLCC is a formal advisory committee that will provide feedback from and act as the liason for the major southern Crown land stakeholder groups of the province. The committee will identify Crown land conservation issues, opportunities and problems as perceived by the public, government and the stake holders, and will propose and discuss possible solutions to those problems.

The committee stakeholders role will be to provide advice to the Ministry of Environment and the Ministry of Agriculture on matters relating to the use, conservation, and management of the provincial southern Crown land resources.

Committee participants will also provide input on applications for the removal of Crown Conservation Easements and provide advice to the Minister of Environment as to their acceptance. The committee will be informed of any requests or removals of Crown Conservation Easements as part of the Treaty Land Entitlements process.

The intent of the Crown Conservation Easement will be to maintain the ecological integrity of the land - ensuring the land is not broken and the water is not drained.

The easement will allow similar land uses to those currently allowed under the Wildlife Habitat Protection Act. This will ensure that Agricultural leases are not impacted significantly.

WHPA designated lands will be categorized based on the Crown Land Ecological Assessment

Tool (CLEAT) score and field assessment.

Land Categorization1. Lands that could be sold without restriction.2. Lands that could be sold with a Crown Conservation Easement.3. Lands that will be retained in WHPA.

Also in 2011, Brian and Glenys Weedon - operators of the Weedon Ranch - received the Canadian Cattlemen’s Association’s Environmental Stewardship Award. It was great to see Saskatchewan producers recognized for their environmentally beneficial management practices.

The Environment Stewardship Award recognizes the contribution of cattle producers for sustainable management practices and stewardship initiatives that ensure a sustainable future for Canada’s beef cattle industry.

“The Weedons have adapted their management practices to work within their operation and the surrounding habitat, ensuring other species dependant on a functioning grassland ecosystem continue to thrive.” - Lynn Grant - CCA Environment Committee Chair

12 SCA 2011 Annual Report

2012 Saskatchewan Stock Growers Association Prairie Conservation Action Plan - $15,000.00

2012 Saskatchewan Livestock Marketers Association Safety Training Resource for Livestock Handlers - $12,250

2012 Saskatchewan Cattle Feeders Association 2012 Feedlot School - $10,000.00

2012 Saskatchewan Forage Council Project Funding - $35,000

2011 Farm Animal Council of Saskatchewan Core Funding - $25,000.00

2011 Western Beef Development Centre Developing indicies for early selection of profitable beef cow herds – Bart Lardner 2011/12 - $15,000.00 2012/13 - $15,000.00 2013/14 - $15,000.00

2011 Canada Western Agribition Beef Promotion Projects - $50,000.00

2011 Saskatchewan Stock Growers Association Prairie Conservation Action Plan - $15,000.00 Youth/Consumer Education - $36,000.00

2011 Saskatchewan Forage Council Core Funding $35,000

2011 University of Saskatchewan Investigating reproductive failure in western cow/calf herds: Developing a practical test for Campylobacter fetus and critically examining the PCR for Tritrichomonal fetus in beef bulls 2010/11 - $10,890.00 2011/12 - $11,490.00

2010 Saskatchewan Stock Growers Association Youth/Consumer Education - $34,000.00 Industry/Membership Support - $15,000.00 Travel and Accommodation - $10,000.00

2010 Western Beef Development Centre ATCO trailer - $25,000.00

2010 SPCA Annual Funding - $35,000.00

2010 Saskatchewan Forage Council Core Funding - $20,000.00

2010 Farm Animal Council of Saskatchewan - $25,000.00

Saskatchewan Beef Industry Development Fund SBIDF

The SBIDF provides funding from the Saskatchewan check-off to help support various research, promotion, education and advocacy projects that benefit the Saskatchewan beef industry. Following is a list of recent projects approved by the SBIDF committee.

SCA 2011 Annual Report 13

Rick Toney, Traceability Working Group ChairTraceability Working Group

It sometimes seems that things take forever to get anywhere, but maybe we have finally arrived where we need to be.

The past year has cost us a lot in going to meetings and to get the industry across our country speaking off the same page on traceability, but after the summit held in Saskatoon August 31 to September 2 it seems like we are getting it done.

Messages coming out of the summit:

1. The Federal Government has told us that traceability will happen, so it is not if it will happen, it is when and how.

2. A national movement document will be developed and will be a key component on how we move forward with traceability. It will allow us to trace cattle movement without reading tags at all points – such as auction marts - which will save us time and money.

3. Premises ID is essential and must be uniformly applied across the nation. It will

be a key component of the national cattle movement document.

4. Movement recording by reading tags will take place at move in, by the owner of the cattle. The starting point in western Canada is those feedlots that bring in more than 1,000 head of cattle.

5. Industry standards will monitor progress before regulations are developed – this should mean regulations will become more realistic.

6. Enable and administer regulations with a common sense approach.

7. Unified communications messages will be developed. In other words - one voice and one position.

This is not the end of the meetings. Early in 2012, there will be a Cattle Implantation Plan meeting to discuss how we move forward, plus a meeting to develop a national cattle movement document.

I think we have made great strides in getting traceability more cost-effective and industry-

friendly while still maintaining a credible traceability system that will work effectively for everyone.

One thing is essential for Saskatchewan producers and that is to get their Premises ID set up as soon as possible. This will make the system work and may save us from having regulations imposed upon us in the future that we may not like.

14 SCA 2011 Annual Report

Dennis Fuglerud, SCA representative

The Saskatchewan Agricultural Hall Of Fame (SAHF) is a non-profit corporation that aims to formally and

publicly recognize people who, in the course of their residence in Saskatchewan, made significant and outstanding contributions to the welfare and improvement of Saskatchewan agriculture, and to a better way of life for the farm family.

Any Saskatchewan agricultural organization or association with a vested interest in agriculture and rural Saskatchewan may apply for membership to the SAHF Board. Associate membership is also available for individuals or organizations with an interest in agriculture who wish to express support for the SAHF.

Organizations or groups of individuals are encouraged to identify and submit nominations for individuals to be considered for induction into the SAHF. Nominations must be submitted by September 1st in order to be considered for induction into the SAHF the following year.

The SAHF Board meets three times a year -

March, August, and October - and holds an annual Induction Ceremony and Banquet the long weekend in August. The actual “Hall of Fame” is located in the Western Development Museum in Saskatoon.

The 2011 SAHF Banquet was held on July 30th, and the Induction Ceremony on July 31st at the Saskatoon Western Development Museum. The following five people were inducted into the SAHF: Dr. Jim Dosman, Dave Christensen, Alana Koch-Hertz, Evelyn Potter, and Gordon Stephenson.

For more information on the SAHF contact:

aJack Hay (chairman) [email protected]

Dennis Fuglerud (SCA representative) 867-8903 [email protected]

SCA 2011 Annual Report 15

a

16 SCA 2011 Annual Report

Sasktatchewan Cattlemen’s Association

SCA 2011 Annual Report 17

Notes to the Financial Statements July 31, 2011

18 SCA 2011 Annual Report

SCA 2011 Annual Report 19

20 SCA 2011 Annual Report

SCA 2011 Annual Report 21

22 SCA 2011 Annual Report

SCA 2011 Annual Report 23

24 SCA 2011 Annual Report

SCA 2011/2012 Proposed Budget

2010/2011 Budget 2011/12 Budget DifferenceProjected/Actual Estimate

IncomeCheck-off Revenue 2,718,030.15$ 2,300,000.00$ (418,030.15) Dealer Rebate ($67,951.00) ($57,500.00) 10,451.00 Communications Revenue -$ 16,000.00$ 16,000.00 Interest Revenue 64,279.36$ 62,000.00$ (2,279.36)

Total Revenue 2,714,358.51$ 2,320,500.00$ (393,858.51) Expenses

Administration ExpensesAudit & CA Services 7,497.00$ 5,500.00$ (1,997.00) Bank Charges & Interest 403.45$ 500.00$ 96.55 Contract Work 21,759.76$ 10,000.00$ (11,759.76) Donations 250.00$ 250.00$ - Insurance 2,266.67$ 2,500.00$ 233.33 IT Support 11,805.49$ 3,500.00$ (8,305.49) Legal 303.99$ 4,000.00$ 3,696.01 Office Rent 11,361.89$ 25,000.00$ 13,638.11 Office Supplies 5,171.04$ 5,000.00$ (171.04) Photocopying 1,946.60$ 1,600.00$ (346.60) Postage & Courier 1,273.97$ 1,200.00$ (73.97) Professional Development -$ 2,500.00$ 2,500.00 Telephone 7,963.23$ 8,500.00$ 536.77

Total Administration Expenses 72,003.09$ 70,050.00$ (1,953.09) Board Expenses

Accommodations 18,252.28$ 19,000.00$ 747.72 Conference Calls 3,819.16$ 4,000.00$ 180.84 Facility Rental 1,897.79$ 2,000.00$ 102.21 Meals 7,048.17$ 7,000.00$ (48.17) Other 1,618.28$ 1,700.00$ 81.72 Per Diems 55,900.00$ 56,000.00$ 100.00 Registration Fees 946.67$ 1,000.00$ 53.33 Telephone 1,727.39$ 2,000.00$ 272.61 Travel 40,697.77$ 41,000.00$ 302.23

Total Board Expenses 131,907.51$ 133,700.00$ 1,792.49 CEO Expenses

Accommodations 5,092.97$ 6,500.00$ 1,407.03 Meals 1,118.68$ 1,300.00$ 181.32 Other 993.33$ 1,000.00$ 6.67 Travel 9,081.69$ 12,000.00$ 2,918.31

Total CEO Expenses 16,286.67$ 20,800.00$ 4,513.33

SCA 2011 Annual Report 25

Communication ExpensesAccommodations 3,297.07$ 3,500.00$ 202.93 AGM Facilities 1,223.56$ 1,500.00$ 276.44 District Meeting 4,248.73$ 4,500.00$ 251.27 Fees, Memberships & Subscriptions 60,542.60$ 25,000.00$ (35,542.60) Other 250.00$ 250.00 Meals 351.26$ 500.00$ 148.74 Postage and Design 66,204.85$ 2,000.00$ (64,204.85) Publication 204.53$ 500.00$ 295.47 Sponsorship & Advertising 13,936.75$ 10,000.00$ (3,936.75) Promotion & Education 5,000.00$ 5,000.00 Trade Show 3,419.56$ 33,000.00$ 29,580.44 Travel 1,797.96$ 2,000.00$ 202.04

Total Communication Expenses 155,226.87$ 87,750.00$ (67,476.87) Industry Development Fund

IDF Funding 285,418.00$ 300,000.00$ 14,582.00 Levy Refund Expense 95,000.00$ 95,000.00 Total IDF Expense 285,418.00$ 395,000.00$

National Policy and Trade Advocacy Programs - Canadian Cattlemen's Association 665,299.00$ 693,659.00$ 28,360.00 National Check-off Agency 1,398,644.32$ 1,150,000.00$ (248,644.32)

Total NP & TA Program Expenses 2,063,943.32$ 1,843,659.00$ (220,284.32) Policy Expences

Accommodations 318.31$ 6,500.00$ 6,181.69 Meals 1,300.00$ 1,300.00 Other 178.25$ 1,000.00$ 821.75 Travel 274.67$ 12,000.00$ 11,725.33

Total Policy Expenses 771.23$ 20,800.00$ 20,028.77 Salaries and Benefit Expenses

Group Benefits 1,740.16$ 15,000.00$ 13,259.84 Payroll Expense 232,210.96$ 330,000.00$ 97,789.04 RRSP Employer 5,155.36$ 20,000.00$ 14,844.64 WCB 814.95$ 1,000.00$ 185.05 Salaries & Benfits Other 9,443.75$ 15,000.00$ 5,556.25

Total Payroll Expenses 249,365.18$ 381,000.00$ 131,634.82

Total Expense 3,084,503.87$ 2,952,759.00$ (131,744.87)

Net Income/Loss 370,145.36-$ 632,259.00-$ (262,113.64)

26 SCA 2011 Annual Report

The Canadian cattle industry scored a clear victory on November 18, when the World Trade Organization (WTO) circulated to

its members the report of the Dispute Settlement Panel that heard Canada’s challenge to the United States’ country of origin labelling law (COOL). The ruling supported Canada’s position that provisions of COOL discriminate against live cattle and hogs imported into the U.S. from Canada to the detriment of Canadian cattle producers. Canada’s challenge to COOL was limited to the application of the labelling measure to beef and pork produced in the U.S. from cattle and hogs imported from Canada. In a unanimous decision, the Panel agreed with Canada that the U.S. COOL regime violates U.S. commitments under the WTO Agreement.

While winning this case as soundly as we have is extremely gratifying, it is the first step toward achieving our goal of eliminating the discrimination caused by COOL. Should the U.S. choose to disregard the WTO Panel’s judgement against it and appeal the ruling within the permitted 60 day period, then the CCA will work with the Canadian government through the appellate process, and, if necessary, regarding retaliatory options.

Of course the CCA hopes the U.S. will decide that complying with the WTO ruling will be in its best interest and move toward a resolution. Having worked closely with the U.S. industry in anticipation of the WTO ruling, I can say emphatically that the vast majority of the U.S. industry also views a resolution as the preferred outcome for this issue.

The CCA has also met regularly with lawmakers in Washington, D.C. to clearly communicate our position regarding COOL. Going forward, we will continue to promote our position that we do not ask for the outright repeal of COOL but seek only those regulatory and statutory changes necessary to eliminate the discrimination that COOL has imposed to the comparative disadvantage of livestock imported into the U.S. vis-a-vie U.S. livestock.

We would hope the resolution would involve the U.S. undertaking to adopt both regulatory and statutory changes. The regulatory changes would be implemented first as a temporary transitional measure pending more comprehensive amendments to the COOL implementing legislation, which, if adopted, would lead to termination of the WTO dispute.

Earlier in November, the CCA met with officials from Prime Minister Stephen Harper’s Office to discuss a number of important issues. On COOL, we requested the Prime Minister’s continued assistance in anticipation of the public release of the WTO report. We presented our position that Product of Canada rules must be changed to coincide with our U.S. solution, that the country of processing should confer origin.

We discussed the importance of completing the Korean Free Trade Agreement (FTA), and thanked the PM for his engagement on the Korean beef access file. We shared our appreciation for the PM’s engagement with Japan, and requested this continue as Japan re-considers it approach to domestic BSE testing. The CCA also raised the issue of Japan possibly joining the Trans-Pacific Partnership (TPP) and the necessity of Canada either joining the TPP or a FTA with Japan. To get accepted into the TPP, Canada would almost certainly have to allow access for dairy and poultry.

In October, CCA representatives joined cattle producer organizations from Australia, New Zealand and the U.S. along with the Mexican hosts for the Five Nations Beef Alliance (FNBA) conference. Longstanding areas of common interest for the FNBA have been working together as a force in favour of liberalization of global beef markets and ensuring that countries make animal health and food safety decisions affecting beef trade on the basis of science and proper risk assessments.

We were invited to appear as witnesses before four different Federal Government committees to provide expert information on industry issues. I

appeared before two committee hearings in Ottawa, the House Standing Committee on Finance annual pre-budget hearing and the House Standing Committee on Agriculture hearing on Innovation in the Growing Forward II suite of programs.

The CCA’s main message was that research and innovation funding in Canada needs to be improved and increased in order to improve Canadian competitiveness and to be able to respond to challenges of tomorrow. Industry’s recognition of the importance and return on investing in research is shown by the 150 per cent increase in industry investment in recent years. The need to increase funding of market development and to allow the mature grain ethanol industry to compete for feed grains in the open market were also part of the briefs delivered.

CCA representatives appeared as witnesses before the Senate Standing Committee on Agriculture and Forestry in Ottawa. The CCA discussed the importance of innovation to the growth and competitiveness of the Canadian cattle industry and the need for more government dollars to support research and technology transfer.

The CCA also appeared before the House Standing Committee on International Trade to discuss the issues around the Canada-Europe Comprehensive Economic Trade Agreement (CETA) on behalf of the Canadian cattle industry.

With annual beef consumption in the EU at approximately 8 million tonnes, the CETA may represent the most significant opportunity in a generation to create new market access for Canadian beef exports. Unfortunately, Canada

Travis Toews, CCA President

SCA 2011 Annual Report 27

ships very little beef to Europe due to the layers of tariff and technical barriers that prevent Canadian beef from realizing its potential in the EU market.

The CCA strongly supports the CETA negotiations. In fact, CCA representatives undertook trade missions to Ireland, England, Belgium, France and Spain in support of improved Canada- EU cattle and beef trade and to communicate Canada’s desire to have more trade with Europe.

However, our support of the final agreement will depend on whether it provides meaningful access for Canadian beef. In our view, achieving meaningful access will require that the many layers of tariff and technical barriers be addressed in entirety.

Providing input on industry issues remains a priority. At the National Cattle Traceability Summit, a number of key points emerged that will reinforce ongoing efforts to develop a traceability system that is cost-effective and workable for Canada’s beef cattle producers. Many of the Summit points echo the policy recommendations put forth last year by the CCA.

The CCA’s annual Parliament Hill Fall Picnic had an excellent turnout of Members of Parliament (MPs), their staff and key government employees. They were joined by 20 cattle producers from British Columbia through to Prince Edward Island who were on hand to meet with MPs and discuss the priority issues of the Canadian cattle industry.

All told, more than 500 people turned out to the East Block Courtyard to talk with producers and enjoy some excellent Canadian beef supplied by the Canadian Meat Council. In addition to the discussions producers engaged in during the picnic, more than 20 meetings were held with MPs and other key influencers. Producers brought forth policy recommendations on issues including market access priority aims, suggestions for the next budget, including investment in research and market development, Growing Forward II policy suggestions and other issues.

Our fly-ins with provincial member associations continued, with the latest held in late November. The CCA and members of ABP met with 11 Alberta MPs and NDP Trade and Agriculture

critics to discuss important issues including COOL and next steps, Korea, CETA, and ethanol.

In August, the CCA attended the National Cattlemen’s Beef Association (NCBA) summer meeting in Florida. Among the various committee issues discussed was the NCBA’s position with respect to COOL. The NCBA had taken notice that the World Trade Organization (WTO) had delivered its final decision to the U.S., Canadian and Mexican governments. While the CCA is bound by a confidentiality agreement not to disclose the content of the ruling (which was confidential until this fall) apparently the NCBA had learned enough from media reports to take a position on the case. The CCA was at the NCBA International Markets Committee meeting on August 3, when the following directive was passed:

“NCBA staff should urge the U.S. Trade Representative to forego an appeal of the WTO ruling on US COOL and work with Congress and/or regulatory agencies to implement a program that is WTO compliant and consistent with current NCBA policy.”

The CCA has worked with the NCBA, its state affiliates and lawmakers in Washington, D.C. for several months in anticipation of the ruling to encourage the U.S. to waive any appeal and to move directly to resolve the dispute. We have been clearly communicating our position that we are not seeking the outright repeal of COOL but could be content with a surgical amendment that would retain provisions to provide consumers with more information about the origin of their food while eliminating the negative discrimination that some of the COOL provisions have created for livestock imported to the U.S.

The CCA remains committed and engaged with producers. We were on hand for the 2011 fall meetings for producers in Saskatchewan and Alberta. The meetings provide the CCA with an opportunity to update producers on what their check-off funds are going toward, to reconnect with producer concerns and to aid in policy development through providing information on current CCA policy and activities.

Also this fall, the CCA held its first Town Hall meeting in Prince George, B.C. in conjunction with the B.C. Cattlemen’s Association (BCCA).

The town hall meetings provide the opportunity for producers to meet CCA executive and managers and hear about the activities the CCA is involved in on their behalf.

The event in Prince George was a good opportunity to meet with producers at a grassroots level. Presentations by CCA executive and managers were well-received by participants. The level of engagement with producers, many of whom are BCCA directors and industry leaders in B.C., was impressive.

Feedback from producers indicated that the meeting was well-received. Many producers reported feeling confident in the work that the CCA is doing nationally and internationally to represent the best interests of our grassroots. We look forward to similar successes at upcoming town hall meetings scheduled for Manitoba and Ontario for the current fiscal year. Sponsorship from Farm Credit Canada (FCC) enables the CCA to host town hall meetings through 2014.

The Beef InfoXchange System (BIXS) launched to cow-calf producers nationwide. The launch marked the successful conclusion of more than two years of effort to advance a concept developed by the CCA into the BIXS program. BIXS is an individual animal and carcass data information exchange system developed by the CCA with funding provided through Agriculture and Agri-Food Canada’s (AAFC) Agriculture Flexibility Fund.

Amidst all this activity, there were a number of positive trade developments in 2011.

The Government of Canada announced its intention to join the Trans-Pacific Partnership (TPP) to encourage and enhance trade relationships with the crucial Asia-Pacific region. Canada’s interest in joining the negotiations on the nine country TPP trade deal follows a similar expression of interest from Japan, also an important market for Canada’s livestock industry.

Joining the TPP countries of Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States, could be beneficial for Canada’s cattle industry, especially if Japan joins the pact. The possibility to address Japan’s 38.5 per cent tariff on beef is a key objective for Canadian beef producers.

28 SCA 2011 Annual Report28 SCA 2011 Annual Report

Canada reached an agreement with the U.S. to make Canadian blood meal available in the U.S. market. The agreement removes the last remaining barrier from the 2003 BSE market closure. Vietnam reopened to live breeding cattle, the Canada-Colombia FTA came into effect, and Canada reached a science-based technical agreement with South Korea as a step toward restoring market access for Canadian under-30-month (UTM) beef. Under the agreement, Korea agreed to commence UTM shipments by the end of 2011. If Korea does not resume UTM beef imports within the agreed timeline, CCA would seek the resumption of the WTO dispute panel. We continue to watch this process closely and will encourage the Government of Canada to resume its complaint with the WTO if progress is not made.

Of course the full restoration of access for beef products from cattle of all ages to key markets remains a top priority. Our international trade efforts continue at a time when domestic price fundamentals for cattle remain strong. The same supply situation propping up prices is squeezing packing plants leaving many to take steps to control operating costs or close altogether, as we saw earlier this year with XL in Calgary.

Even with all the positive news in the industry, significant challenges to our competitiveness remain. Extreme weather dominated much of the year, with unprecedented flooding in many parts of Manitoba and Saskatchewan devastating many producers. These and other unfortunate events have reinforced the importance of working proactively with governments to, whenever possible, use a scientific approach to determine when real disaster assistance is required.

The AgriRecovery program should be implemented only when extreme events have left the industry unable to cope. Otherwise, government assistance offsetting normal business risk events will distort market forces, lead to more government intrusion in our industry, and negatively affect our image with the public. It will also mean less available funding for research.

One of the many pieces of policy discussed at the CCA Semi-Annual meeting was the Growing

Forward (GF) suite of programs. This five-year Federal/Provincial/Territorial agreement is due to expire in March 2013. Consultations began early with a goal of negotiations taking place next summer. Leading up to those discussions, the document ‘CCA GF II Position August 2011’ will help to inform all governments and stakeholders how CCA believes this policy suite should develop. The document is posted on our website at http://www.cattle.ca/media/file/original/1024_CCA_GF2_Position_August_2011.pdf

The gist of our position is this: in 2010 cattle and calf cash receipts totalled over $6 billion while beef production contributed $24.6 billion to Canada’s economy. Looking back at spending directed at agriculture sectors it is important to remind policy-makers of this industry’s contribution to the economy. Modest growth of this sector can contribute greater amounts to more producers than seemingly larger growth in most of the other sectors of Canadian agriculture. Government investment needs to recognize this reality.

Another priority is improving our regulatory environment. Regulations need to be designed and implemented in a way that puts the competitiveness of the Canadian agriculture sector on equal footing with our global competitors.

Specific emphasis continues to be placed upon harmonizing the Canadian approval process for veterinary drugs with the U.S. Harmonization is needed around specified risk materials (SRM). The higher costs of collecting and disposing SRM in Canada compared with the U.S. has created a competitive disadvantage for Canadian packers and producers that reduces profitability and encourages live cattle exports to the U.S.

We continue to focus on the impact of North American biofuels policies on our industry. Concern remains that significant growth in Canada’s grains-based biofuels industry has the potential to undermine the long-term competitiveness of the cattle feeding sector.

On behalf of Canadian cattle producers, we will continue to press for improvements to our competitiveness on the trade front and at home in our regulatory and business environment.

Continued from Page 27

SCA 2011 Annual Report 29SCA 2011 Annual Report 29

The Beef Cattle Research Council (BCRC) administers the research funding allocation of the National Check-off (NCO). The

BCRC was established to sponsor cattle and beef research and technology development in national priority areas. The Council also facilitates and encourages collaboration and coordination among researchers, other funding agencies, and industry in order to maximize the benefits obtained from investments made in beef cattle research.

Most recently the BCRC is working directly with Agriculture and Agri-Food Canada (AAFC) to implement the Beef Cattle Industry Science Cluster. Industry and government funding commitments through the Science Cluster total $11.25 million directed to 32 research projects. This initiative, in which every National Check-off dollar is matched by six AAFC dollars, is focused on advancing research of priority through the collaboration of Canada’s main public and industry beef research funder.

In addition to the investments made through the Beef Cattle Industry Science Cluster, the BCRC has contributed over $4 million to nearly 60 other research initiatives. These BCRC investments have leveraged other industry and government dollars, leading to total funding exceeding $20 million.

Due to the increases in provincial NCO allocations to the BCRC in 2011, coupled with the Alberta Government’s decision to revert the NCO to non-refundable status, the BCRC was able to hold a call for research proposals in the fall of 2011. Final funding decisions were made in December.

CLUSTer reSeArCh hiGhLiGhTS

Improved Feed Efficiency – 20% of FundingFeed is the single largest variable cost for both cow-calf and feedlot production. Feed conversion ratios published in Canadian scientific literature have improved by 40 per cent between the 1950 and 2001. At current feed prices, that historical rate of improvement is worth $8 million per year. Improving feed efficiency also has measurable environmental benefits; a 20 per cent improvement

translates to a 30 per cent decrease in manure production, as well as a 30 per cent reduction in methane production. Moving forward, continued improvements in feed efficiency through research investigating alternative feeding strategies, new feed development, and improvements in genetics are being focused on.

Improved Forage and Grassland Productivity – 23% of Funding Feed costs at the cow-calf level are best addressed by increasing forage productivity and reducing winter confinement-feeding costs. In addition to providing wildlife habitat, plant biodiversity, minimizing soil erosion, protecting watersheds, well managed natural grasslands store more carbon in the soil than cropland or forested vegetation. In the project Reducing the Cost of Swath Grazing Cows by Increasing the Swathed-Crop Yield, Vern Baron (AAFC Lacombe) and collaborators at Alberta Agriculture are comparing different seeding dates and annual crops to identify strategies to maximize forage nutrient yield and minimize winter feeding costs. Preliminary results suggest that winter feeding costs can be reduced by 27 to 45 per cent by swath grazing corn or triticale compared. This has significant implications, as

reducing winter feeding costs by as little as 1 per cent would save Canada’s cow-calf sector $6 million annually.

Animal Health and Welfare – 15% of FundingIn the project Effect of Ventilation Management Strategies and Stocking Density During Transport on Trailer Microclimate and Calf Welfare, researchers at AAFC Lethbridge and the Universities of Calgary and Saskatchewan are building on previous industry funded research that examined the influence of current cattle transport practices on the risk of harm to calves, feeder cattle, fed cattle and cows. This study found that at least 99.95 per cent of cattle reach their destination with no identifiable problems, which has proven useful in countering unfounded claims to the contrary. It has also helped to identify specific cattle populations that may benefit from modified transport practices. As a direct outcome of this research, further research is underway to examine whether modified trailer ventilation affects the incidence of respiratory disease in calves, which is a leading cause of death and treatment costs at feedlots. Reducing the death loss from 2 per cent to 1.5 per cent would save the industry more than $10 million annually.

30 SCA 2011 Annual Report

Canada’s Beef Cattle Industry Science Cluster brings together Canada’s largest public and industry check-off research

funding agencies, Agriculture and Agri-Food Canada (AAFC) and the Beef Cattle Research Council (BCRC). Collaboration and investments under the Beef Cattle Industry Science Cluster are focused on advancing research of priority to improve production efficiencies - 65% of funding, 23 projects - and consumer confidence and beef demand - 35% of funding, 9 projects.

improved production efficiencies (65% of funds)

The Beef Cattle Industry Science Cluster has directed 18% of its funds to seven feed efficiency research projects. Feed is the single largest variable input cost in both cow-calf and

feedlot production. Feed efficiency of Canadian cattle has made marked progress. Cattle that took 3 to 5 years to finish in the late 1880’s now reach the same finished weights in less than 24 months.

Feed conversion ratios published in Canadian scientific literature improved by 40% between the 1950 and 2001. At current feed prices, that historical rate of improvement in efficiency has been worth $8 million per year. Improving feed efficiency also has measurable environmental benefits - a 20% improvement in feed efficiency translates to a 30% decrease in manure production, as well as a 30% reduction in methane production.

Moving forward, continued improvements in feed efficiency through research investigating

alternative feeding strategies, new feed development, improvements in genetics, and selection tools will all be essential to facilitating the growth and sustainability of the beef industry in a new realm of higher feed prices due to growing global food and fuel demand.

The Beef Cattle Industry Science Cluster has directed 19% of its funds to improve forage and grassland productivity. Because cow-calf production is pasture-based, feed costs are best addressed by both increasing forage productivity and reducing winter confinement-feeding costs. In addition to providing wildlife and bird habitat, plant biodiversity, minimizing soil erosion, protecting watersheds, well managed natural grasslands store more carbon in the soil than cropland or forested vegetation.

Food Safety – 11% of Funding Scientists from Alberta Agriculture, AAFC Lethbridge and private industry are studying The Impact of Wheat Distillers Grains on the Shedding of E. coli 0157:H7; addressing concerns that feeding wheat dried distillers grains with solubles (DDGS) to feedlot cattle may increase the risk of E. coli O157:H7. The research has found that DDGS did not affect the numbers of E. coli O157:H7 shed in manure, surviving in manure, or found on cattle hides at the end of the feeding period. This is good news for the Canadian industry, given that saving 1 cent per pound due to reduced food safety recalls could save Canada’s beef industry $21 million/year. Beef Quality – 23% of Funding Researchers from AAFC and the Canadian Cattlemen’s Association (CCA) are conducting a National Beef Quality Satisfaction Survey and Carcass Audit. The first phase of this project assessed Canadian consumer demographics and satisfaction with retail beef quality. Compared to previous surveys done in 1995 and 2001, the researchers found that consumers’ satisfaction levels have improved on measures of tenderness (76% in 2009 vs. 68% in 2001), juiciness (78% vs. 72%) and flavor (82% vs. 76%). This is important in that a 1 per cent improvement in the value of cuts from the loin, rib and sirloin due to increased demand is worth an estimated $27 million/year.

Likewise a 1 per cent improvement in the value of cuts from the hip, chuck, brisket and shank is worth an estimated $39 million/year. The Beef Quality Audit is also collecting information about the frequency of horns, carcass defects such as bruises and locations of injection site lesions. This (and other) information collected in past beef quality audits have been instrumental in focusing producer education efforts on areas needing the most improvement.

Looking forwardThe BCRC has continued to enhance its communication efforts through the publication of research fact sheets that are circulated through the CCA’s Action News, monthly articles in partnership with provincial cattle organizations (and other agriculture media), and a regular research column in Canadian Cattlemen magazine. The BCRC works with Canada Beef Inc. and the CCA’s Animal Health, Animal Care, and Environment Committees on an ongoing basis on specific communication and policy issues. The BCRC has also appeared as industry witnesses before several senate and parliamentary committees, providing valuable science-based industry perspectives on issues of interest to legislators.

As a part of the Beef Science Cluster, a long-term strategy has been developed to improve technology

transfer and knowledge dissemination, with a clear focus on accelerating the uptake of research results by industry. The BCRC is committed to taking a leading role in enhancing technology transfer in the beef industry. This initiative is expected to make significant progress in the coming year with the hiring of a Beef Extension Coordinator who will work to raise the profile of technology transfer activities, as well as expanding the reach of the BCRC website and active exploration of social media in an effort to connect promising research with early-adopters.

Planning for the next version of the Beef Science Cluster under Growing Forward II will commence early in 2012. A series of results communication and priority planning sessions will be conducted, revolving around the Beef Science Cluster priority areas. The feedback from the producers, industry stakeholders and researchers attending these sessions will be used to establish priority research outcomes that the next Cluster will be designed to achieve.

More information on BCRC funded research is available at http://www.cattle.ca/research.

The BCRC also oversees and supports the national Verified Beef ProductionTM (VBP) program - the Canadian beef cattle industry’s on-farm food safety program.

Canada’s Beef Cattle Industry Science Cluster Report

SCA 2011 Annual Report 31

aSCA 2011 Annual Report 31

In the project Reducing the Cost of Swath Grazing Cows by Increasing the Swathed-Crop Yield, Vern Baron (AAFC Lacombe) and collaborators at Alberta Agriculture are comparing different seeding dates and annual crops - corn, barley, triticale - to identify strategies to maximize forage nutrient yield and minimize daily winter feeding costs for the cow herd. Preliminary results from this trial suggest that total winter feeding costs can be reduced by 27-45% by swath grazing corn or triticale compared to a traditional confinement-fed control. This has significant implications for Canada’s beef industry, as reducing total winter feeding costs by as little as 1% would save Canada’s cow-calf sector $6 million annually.

The Beef Cattle Industry Science Cluster has directed 22% of its funds to seven animal health, welfare and production limiting disease research projects. In Effect of Ventilation Management Strategies and Stocking Density During Transport on Trailer Microclimate and Calf Welfare, researchers at AAFC Lethbridge and the Universities of Calgary and Saskatchewan are building on previous industry funded research that examined the influence of current beef industry cattle transport practices - loading densities, time, distance and weather conditions in transit - on the risk of harm to newly weaned calves, feeder cattle, fed cattle and market cows.

This study, which was the largest of its kind done globally under industry conditions, has found that at least 99.95% of cattle reach their destination with no identifiable problems of any sort. This has proven useful in countering unfounded and sensational activist claims to the contrary. It has also helped to identify specific cattle populations that may benefit from modified transport practices.

As a direct outcome of this research, the Beef Cattle Industry Science Cluster project is examining whether modified trailer ventilation practices affect the incidence of respiratory disease in feedlot calves, which is a leading cause of death and treatment costs at feedlots. Reducing the death loss in feeder calves from 2% to 1.5% would save the Canadian beef industry more than $10 million annually in direct savings realized by reduced treatment and feed costs.

Consumer Confidence and Beef Demand (35% of funds)

The Beef Cattle Industry Science Cluster has directed 9% of its funds towards food

safety research projects. Scientists from Alberta Agriculture, AAFC Lethbridge and private industry (Feedlot Health Management Services) are studying The Impact of Wheat Distillers Grains on the Shedding of E. coli 0157:H7. This research addresses concerns that feeding wheat dried distillers grains with solubles (DDGS) to feedlot cattle may increase the risk of E. coli O157:H7.

Cattle were fed finishing diets containing no DDGS, 22.5% corn DDGS, or 22.5% wheat DDGS. The research has found that diet did not affect the numbers of E. coli O157:H7 shed in manure, surviving in manure, or found on cattle hides at the end of the feeding period.

This is good news for Canadian cattle feeders, given that saving 1 cent per pound due to reduced food safety recalls could save Canada’s beef industry $21 million per year. Notably, this research would likely not have been conducted in the US, where most finishing diets are based on corn rather than barley, and little wheat DDGS is used.

The Beef Cattle Industry Science Cluster has allocated 25% of its funds to four beef quality research projects. Researchers from AAFC and the Canadian Cattlemen’s Association are conducting a National Beef Quality Satisfaction Survey and Carcass Audit (BQU.01.09).

The first stage of this project assessed Canadian consumer demographics and satisfaction with retail beef quality. Compared to previous surveys done in 1995 and 2001, the researchers found that consumers’ satisfaction levels have improved on measures of tenderness (76% in 2009 vs. 68% in 2001), juiciness (78% vs. 72%) and flavour (82% vs. 76%). This suggests that the beef industry has been moving in the right direction.

This is important in that a 1% improvement in the value of cuts from the loin, rib and sirloin due to increased demand is worth an estimated $27 million per year to Canada’s beef industry. Likewise a 1% improvement in the value of cuts from the hip, chuck, brisket and shank is worth an estimated $39 million per year to Canada’s beef industry.

The Beef Quality Audit is still underway, and is collecting information about the frequency of horns, carcass defects such as bruises and locations of injection site lesions. These Beef Cattle Industry Science Cluster research

projects, and others accounting for 7% of funding, will be concluded in 2013.

technology transfer and Knowledge Dissemination

For industry to adopt and profit from the scientific knowledge and technology developed through research, they must be aware of how the research could fit into their operation, and understand how to implement it.

As an initial step to this end, the Beef Cattle Industry Science Cluster is investing funding to develop and implement a Technology Transfer and Knowledge Dissemination plan. This is intended to encourage and cultivate technology transfer skills among the research community, make pertinent research available to industry in a timely and user-friendly manner, and foster relationships between applied researchers and early research adopters so that the technology will move from the lab and into operations that stand to benefit.

This will complement ongoing BCRC efforts to ensure that industry and policy makers are aware of the value and results of industry funded research, and ultimately help fill the technology transfer functions that were at one time carried out by federal and provincial agriculture departments.

The Beef Research Cluster is funded by the Canadian Cattlemen’s Association and Agriculture and Agri-Food Canada to advance research and technology transfer supporting the Canadian beef industry’s vision to be recognized as a preferred supplier of healthy, high quality beef, cattle and genetics.

Reynold Bergen, PhD Science Director, Beef Cattle Research Council Canadian Cattlemen’s Association 310, 6715 - 8th Street NE Calgary, AB T2E 7H7Phone: (403) 275-8558Fax: (403) 274-5686Email: [email protected]

32 SCA 2011 Annual Report

In mid-October, after the last of a three-phase launch process, the Beef InfoXchange System (BIXS) became fully

active for cow-calf producers nationwide to register and begin submitting data on their animals. At the time of launch, final versions of the user guides on how to register onto BIXS, submit data and how to use the export, import and reporting functions of BIXS were prepared. These guides are posted either on the BIXS website or in the BIXS portal.

The majority of the initial numbers of cattle coming into the BIXS database will come through the full engagement of platform partners and third party databases like the Pfizer Gold program, Canadian Angus Association, BeefBooster, and Beef Improvement Opportunities (BIO). These will include some of the largest cow-calf operation in the country. This process will occur through the balance of the fall and into early 2012.

With the launch to cow-calf producers achieved, the emphasis will shift to encouraging feedlots to join BIXS and submit data on an individual animal basis. CCA is working with the CCIA to develop a web services application that would enable BIXS to import certain feedlot move-in data so that large amounts of animal data at the feedlot segment could stream into BIXS in an automated process. It is expected that feedlot registrations and data submission could begin in January if this application development stays on schedule.

For carcass data, commitments have been achieved between the two major packers

in Canada and the CCA to cost-share the collection and submission of data from the packers directly into BIXS. The target date for this to begin remains January 2012, which should cover most of the registered 2011 calf crop.

BIXS will support the smaller packers to make the task of getting data to BIXS easier to manage through carcass tracking solutions.

Most recently BIXS launched a service for BIXS registered producers to showcase their BIXS animals ahead of going to auction. The BIXS Cattle-Classifieds is a no-charge ad service found on the BIXS website that allows registered BIXS cow-calf producers

to post information on their cattle and what auction market they intend to sell through, where that market is and when the sale will take place.

Buyers have the ability to view and sort these ad listings based on attributes like sex, breed/cross, colour, vaccination details, castration information and more. It is expected this service will get limited use this year due to the timing of launch (well into the tail end of the calf run) and the relative infancy of the BIXS, but it should be well utilized through the 2012 marketing season.

Beef InfoXchange System (BIXS) report

SCA 2011 Annual Report 33

Verified Beef Production™ (VBP) program was designed by the beef industry to uphold consumer

confidence in the sound practices of this country’s beef producers.

Developed by the Canadian Cattlemen’s Association in 2003, it is based on the principles of a systematic approach to food safety known as HACCP. It has undergone two technical reviews by the Canadian Food Inspection Agency.

VBP’s standard operating procedures, education and record keeping components complements food safety efforts beyond the farm-gate.

The focus has been training producers in the VBP program, as the beef sector is large and reaching all beef cattle producers is a challenge. Participation has grown to nearly 16,000 cattle operations taking a workshop, including over 850 taking the online version. Using a weighted average, the percent of production from VBP-trained operations is now 55-60% of beef production.

VBP participation in workshops as of June 2011 represented 33% of cow-calf production and over 70% of feedlot production in Canada. The graph illustrates cumulative growth in the last six years.

Growth of 40-43% in audited operations is due in part to federal/provincial Growing Forward funding, particularly in MB, SK and AB. Funding for workshops, audits and equipment purchases helps attract producers to the program.

Some producers are identifying VBP as part of the future where industry begins to differentiate its products – an attitude shift. A side benefit of the VBP program reported by many cattle operations has been improved use of animal health products and improved family communication. People know what they are supposed to do and are comfortable doing so.

VBP identifies practical, industry-sanctioned practices to enhance confidence in Canadian beef. For further information check out www.verifiedbeef.org

Verified Beef Production™

VBP focuses on: • AnimalHealthManagement • MedicatedFeed/Waterand Non-Ruminant Feed • CattleShipping • PesticideControlandManure • TrainingandCommunication

34 SCA 2011 Annual Report34 SCA 2011 Annual Report

Canada Beef Inc. is the organization created by the consolidation between the Canadian Beef Cattle Research, Market

Development and Promotion Agency, the Beef Information Centre (BIC) and the Canada Beef Export Federation (CBEF).

The Canada beef inc. board of Directors

The Board of Directors for Canada Beef Inc. is comprised of provincial representatives and funders. The inaugural Board will hold office from July 1, 2011 until the first Annual Forum and Board elections, anticipated for July 2012.

Ten provincial association members have been selected as inaugural board members: Brad Wildeman (Chair), SK; Dane Guignion (Vice Chair), MB; Grant Huffman, BC; Chuck MacLean, AB; Jeff Warrack, AB; Paul Sharpe, ON; Gib Drury, QC; Jennifer MacDonald, NB; Jim Bremner, NS; and John MacDonald, PEI.

Industry representation covers all sectors along the beef value chain: Dwight Greer, Eastern Meat Solutions, Beef Processing and Distribution; Brian Read, XL Foods; Francis Labrecque, Levinoff Meat Products; Mike Kennedy, Cargill; Arthur Batista, Ecolait; and Scott Ellerton, Sysco Canada. The first board meeting was held July 26, 2011 at which time Brad Wildeman was named Chair and Dane Guignion was named Vice Chair.

Within the Board, four committees have been formed to oversee specific areas of business. Committees assume an active role in governing Canada Beef. Members are accountable to the Board for fulfilling the mandates determined by the Board and actively performing their assigned duties related to the committee’s business on behalf of the Board.

• Finance/ Audit and program Performance Management – Scott Ellerton• Planning and Priorities – Brian Read

• Governance – Chuck MacLean• International Beef Trade Access Policy Advisory – Mike Kennedy

Canada Beef executive

Robert Meijer was appointed President of Canada Beef Inc. effective August 1, 2011. Meijer, former Director of Corporate Affairs for Cargill Limited, brings 14 years of policy, regulatory, legislative, political and communications experience to Canada Beef Inc.

The executive team also includes the following:John Baker – Executive VP Global MarketingCam Daniels – VP International Market Develop.Rob Giguere – VP ProgramsRon Glaser – VP Corporate Affairs & OperationsHerb McLane – VP Emerging MarketsMichael Shittu – VP Finance

strategic plan

Canada Beef Inc.’s 2012/13 inaugural annual business plan (15 months) establishes a clear direction for the new organization. The plan is designed to deliver programs and activities that will achieve measurable and impactful results with clear alignment to the three year strategic plan developed by Canada Beef ’s Planning and Priorities Committee, as well as the long term strategic goals of the Canadian Cattle Market Development Council.

The Canadian beef and cattle supply outlook (Canfax Outlook) for the next 24 months suggest that volume growth opportunities are limited due to industry consolidation and that maintaining domestic market share and optimizing value in export markets is a realistic goal. The projected reduction in cattle marketings also creates a new fiscal reality the organization must face moving forward. The inaugural Canada Beef plan will require program rationalization and difficult decisions related to priority and emerging markets.

strategic Focus

The strategic focus of the plan is to continue the commitment to defining, communicating and leveraging the unique points of differentiation for Canadian beef and veal. As a high cost producer of high quality grain fed beef, it is imperative that Canada Beef marketing programs are targeted at a very specific customer base that represents the best opportunity to provide a return on investment. Those targeted customers must be in markets and segments that can receive highest values for high quality grain fed beef and veal, and must value the quality and safety systems that Canadian producers/industry/government invest in.

Market prioritization

In developing the plan and resources required to deliver on the outcomes, many factors have been considered. Where possible, programming that offers longer term benefits have been developed and will be implemented in markets where viable access is solidified. In markets where full or viable access is not yet solidified, programming has been scaled to offer the highest short term returns possible in limited access conditions, but with an eye to the future when more favourable long term access conditions are realized.

In order to maximize values of the current level of production, direct input from industry was utilized to determine markets that represent the highest value in the current access conditions and can be enhanced through a marketing strategy of developing value propositions based on clear and meaningful product differentiation compared to competing alternatives in various global markets. The value propositions will be based on leveraging the relevant and meaningful attributes defined by the Canadian Beef Advantage.

The plan includes a comprehensive analysis provided by Canfax Research Services of projected supplies of both fed and non-fed

Brad Wildeman, Chair - Canada Beef Inc. Board of Directors

SCA 2011 Annual Report 35

production which serves as the basis for market prioritization. In order to prioritize markets an analysis was performed with industry of various factors including market access, as well as the product mix that historically makes up the export volumes and the ability to significantly differentiate those products based on value delivered through the points of differentiation.

Less importance was placed in markets where the points of differentiation offered by the CBA are less impactful as opposed to markets where Canada clearly differentiates its products versus competing alternatives. The rationale is to identify markets that represent the most efficient return on investment and that support increased value. For the 2013/14 fiscal year business plan, Canfax Research Services will provide a more comprehensive approach to market/product analysis.

Desired outcomes by priority Market

Considering the beef supply outlook over the term of the plan and available funding to implement the plan, desired outcomes by priority market have been identified and are reflective of the abilities of Canada Beef to effectively impact results based on those factors. The markets have been defined as:

• Canada• Priority Markets (United States, Mexico, Japan, China/Hong Kong/Macau)• Secondary Markets (Korea, Taiwan and emerging markets)

In order to be responsive to changing market access conditions, an opportunity budget will be allocated to allow for rapid allocation or re-allocation of resources to the applicable market to implement tactical initiatives. Specific tactics will be defined as required and approved by the board before implementation.

alignment with industry

As part of the industry input process, Canada Beef Inc. has ensured that strategic and tactical alignment is leveraged with industry partners and their distribution networks in global markets wherever possible to identify target customers and priority products in key markets and segments.

Commitment to transparency

Canada Beef Inc. is committed to creating a global awareness around the value of the Canadian beef brand, and delivering return on investment for its funders. The plan is representative of our commitment to transparency. The plan includes strategies and tactical initiatives which will be deployed in each market. Also included are expected outcomes of combined strategies and tactics, as well as clear performance metrics and projected budgeted expenses by market.

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

36 SCA 2011 Annual Report

Update – 2011 Highlights

The Canadian Cattle Identification Agency (CCIA) is a non-profit, industry-led organization incorporated to establish a national cattle identification program. The program’s goal is to promote beef consumption through the assurance of efficient trace back and containment of serious animal health and food safety concerns in the Canadian cattle herd. The agency is led by a Board of Directors made up of representatives from all sectors of the cattle industry.

Board of Directors

In addition to their many other responsibilities as CCIA’s Board of Directors Chair and Vice Chair, Darcy Eddleston and Dr. Pat Burrage have been actively raising awareness and educating the public, industry and international audiences. Presentations have engaged VIP delegates from Mexico, Japan, China, Korea and the International Meat Secretariat through Canada Beef Export Federation/Canada Beef Inc.; the Government of Alberta – Alberta Agriculture and Rural Development; and Canadian Beef Breeds. CCIA is now fielding requests for these two speakers for events in 2012.

information technology

Internally, CCIA recognized the need to improve our IT systems and business processes. Therefore, an extensive architectural upgrade project was completed in 2011. In our continuing efforts to improve producer services, CCIA created a new online resource centre and eight Canadian Livestock Tracking System (CLTS) video tutorials to help simplify the CLTS user experience. We also conducted an age verification data audit and implemented system enhancements to support producers to enter age verification data correctly and provide feedback.

Considering how critical the role of CCIA-approved RFID tag dealers is to accurate animal identification and traceability in Canada, CCIA has been working extensively with tag dealers (one-on-one training and group workshops) to educate and to help them meet their contractual requirements for selling RFID tags. CCIA continues to assess the current tag distribution system in order to maximize the integrity of data submitted by the tag dealer network.

Since the tag identification system is the basis for animal identification and movement tracking, CCIA will continue to align the current system with current and future strategic business practices

in order to be more confident in the integrity of the tag information stored in the CLTS database.

tag retention project

In 2011, CCIA, CFIA and AAFC developed and initiated a long-term tag retention trial to collect baseline data on cattle tag retention and readability as well as recommend solutions to enhance tag retention and readability.

This trial was designed to involve animals from various geographical areas ranging from British Columbia to Ontario to ensure appropriate representation of farming styles and environments. To date, 5,000 animals have been tagged with CCIA-approved tags with equal distribution of tag types/brands to each farm test site (selected based on appropriate handling facilities to optimize tag application and retention).

In this trial, all tags are applied per manufacturer’s directions to three study groups -male and female calf-yearlings, mature cows and bulls. Moving forward, project activity reports will be available following each data collection event - at time of tagging, weaning, summer turn-out and fall gather. The final report will include data sets regarding tag retention and readability by ranch, brand of tag, and by each study group. Stay tuned for the first update in early 2012.

rFiD systems applied research study

Midway through 2011, CCIA released the results of Phase Two of the Applied Research Project evaluating the impact of fully-integrated radio frequency identification (RFID) systems at 13 auction markets and buying stations across Canada.

The Applied Research Project is a multi-phase initiative developed in light of pending regulations for livestock traceability. Throughout this multi-phase project, more than 535,000 head of cattle were scanned and reported to the CLTS.

This project has been successful at identifying many challenges for movement reporting at the auction mart and buying stations. It is also a success in terms of identifying the current benefits to industry and producers, and an example of the cattle marketing sector and government working together towards a common goal.

national Cattle traceability summit

CCIA and representatives of the Canadian beef and dairy industries participated in the National

Cattle Traceability Summit in Saskatoon, August 31 to September 2, 2011 – an event hosted by the Honourable Gerry Ritz, at the request of CCIA and industry.

There were 64 participants in attendance – 51 from industry including cow/calf, dairy, feeders, dealers and auctions, and processing - and 13 from federal and provincial Governments. With the goal of agreeing on the pace and extent of implementation, as well as developing a national action plan to address issues and gaps in the current traceability program, Summit participants discussed preferred futures, strategies and actions for six core themes identified in a pre-summit survey - premises identification, movement, funding/costs, regulations/standards, information management, and communications.

The summit established a variety of key messages for industry use and action items to move traceability forward in Canada through readiness and joint action by industry and governments.

CCia Field representatives

Our collaborative relationship with the Alberta and Saskatchewan governments was amply demonstrated by the great work done in the field by the Mobile Field Representatives in Alberta and the Producer Support Representatives in Saskatchewan. These individuals continue to provide great service and Canadian Livestock Tracking System (CLTS) support to producers, feedlots and auction markets assisting with a wide range of traceability initiatives and providing invaluable information regarding best traceability practices.

Field support services were expanded in partnership with the Government of Alberta – Alberta Agriculture and Rural Development - to employ one new Mobile Field Representative (MFR) to help Albertan livestock producers implement traceability initiatives in east-central Alberta.

the Future

In the future, CCIA will continue to advance the implementation and evolution of the national traceability system through collaborative and ongoing relationships with industry, provincial and federal governments and the Canadian Food Inspection Agency (CFIA).

As a member of the Industry Government Advisory Committee (IGAC), discussions on traceability and collaborative processes with other service providers, CCIA is committed to discussing and working together on a multi-species national traceability system.

SCA 2011 Annual Report 37

Call to Order and Opening Comments

Approval of Agenda

Minutes of the 2011 AGM

Chair Report

Introduction of elected directors

Introduction and thank you to outgoing board members

Financial Report

Appointment of Auditor

CCA Update

BCRC Report

CCA Representatives – Elections

Resolutions Session

Closing Comments

1 - CaLL to orDerThe meeting was called to order at 12:12 p.m. by Chair Bob Ivey. Bob welcomed those in attendance and introduced the dignitaries includ-ing: Chuck McLean, Chair Alberta Beef Producers; Rich Smith, General Manager Alberta Beef Producers; Gib Drury, Chair of Canada Beef Export Federation; and members of the Saskatchewan Agri-Food Council – Mur-ray McGillivary, Hubert Esquirol, Corey Ruud and Lyndi Blakley. Hubert Esquirol was introduced as the Parliamentarian for the meeting.

There was a request to add to the agenda a report from Brad Wildeman regarding the Canada Beef Working Group.

MOTION - AGM11 - 1: Brian Longworth/Larry Grant“To approve the agenda as amended.” Motion carried

2 - revieW oF 2010 aGM MinUtesKeith Robertson reviewed the minutes from the 2010 AGM. There were no errors or omissions brought forward. There was no business arising from the minutes

MOTION - AGM11 - 2: Tim Oleksyn/Richard Wilson“That the minutes be adopted as reviewed.”Motion carried

3 - openinG CoMMents FroM tHe CHairMan anD reportChair, Jack Hextall, discussed the progress of the SCA through the

first year – setting policies, committees and other board activities. He mentioned there was a good deal of contact with various provincial and federal government agencies, dealing with topics including AgriRecovery, Price Insurance, and Traceability.

He discussed strategic planning, policy and process for the board and staff and said there will be a strategic review on staffing planned for the upcoming year.

He thanked the staff, directors and the director’s families for the time and effort committed through the past year.

MOTION - AGM11 - 3: Jack Hextall/(no seconder required)“That the Chair Report be received as presented.” Motion carried

4 - Ceo report, KeitH roBertsonKeith Robertson, SCA CEO, presented his report. He focused on the setup of the SCA and its first year of operations. He thanked the efforts of everyone involved in the startup of the Cattlemen Connection maga-zine, to communicate with the members. He looks forward to streamlin-ing efforts for the upcoming year.

MOTION - AGM11 - 4: Keith Robertson/(no seconder required)“That the CEO Report be received as presented.”Motion carried

sCa 3rD annUaL GeneraL MeetinG aGenDa1:30 pM – tHUrsDay, JanUary 19, 2012

MinUtes FroM annUaL GeneraL MeetinGFriday, January 21, 2011 • 12:00 p.m.

38 SCA 2011 Annual Report

5 - introDUCtion oF DireCtorsBob Ivey introduced the following: District 1 –Jack Hextall; District 2 – Bill Jameson; District 3A – Ryan Thompson; District 3B – Larry Grant; District 4 – Rick Toney; District 5 – Fred Lansdall; District 6 – Howard Toews; District 7 – Paula Larson; District 8 – Bruce Holmquist; District 9A – Ryan Sommerfeld; District 9B – David Stuart. Representing the SCFA: Brad Welter and Philip Lynn. Representing the SSGA: Doug Gillespie and Ryan Beierbach. Bob Ivey as Past Chair.

6 - introDUCtion anD tHanK yoU to oUtGoinG BoarD MeMBersJack thanked and acknowledged the outgoing interim board members including: Duane Thompson, District 5; Leon Stang, District 7; Lyal Fox, District 9A; and Richard Wilson, SCFA.

7 - FinanCiaL report Marcia Herback, the Auditor for SCA, was unable to attend the meeting for personal reasons, so Keith Robertson presented the financial reports.

MOTION - AGM11 - 5: Richard Wilson/Howard Toews“To adopt the 2010 financial statements as presented.” Motion carried

Discussion then revolved around the budget for the 2010/2011 year. Robertson presented a copy of the budget for the current year. Recom-mendations from the floor suggested that a similar budget be included in the next year’s annual report, to accompany the previous year’s financial statements.

ACTION: Bill Strautman

There was discussion regarding the creation and carrying of a reserve fund for emergencies, fighting trade issues and so forth. Hextall said there is a +$4 million fund existing – received from the Saskatchewan Ministry of Agriculture - but SCA received it in August 2010, so it wasn’t included in the 2009/2010 financial statements, as the SCA year end is July 31. It will be noted in the next year’s financial statements.

8 - appointMent oF aUDitor

MOTION - AGM11 - 6: David Stuart/Ryan Thompson “To appoint Marcia Herback as auditor for the upcoming year.” Motion carried 9 - CCa UpDateRyder Lee from Ottawa, Manager of Federal Provincial Relations with the Canadian Cattlemen’s Association, presented an update from the CCA.

Wilf Campbell presented an update from the Beef Cattle Research Coun-cil.

10 - yoUnG ranCHers proGraMAlison Porter, a young rancher raised on a purebred Simmental farm near Kinistino, provided a report on the Young Rancher’s Program she attended, which included a trip to the International Livestock Congress held during the Denver Livestock Show.

11 - CanaDa BeeF WorKinG GroUpBrad Wildeman did a presentation on the work of the Canada Beef Work-ing Group, in its efforts to create one single group to maximize efficien-cies and effectiveness for domestic and international Canadian beef marketing, promotion and research activities.

12 - resoLUtion sessionThe Chair discussed the process that would be employed to deal with the resolutions. Resolutions listed in the 2010 annual report, plus five resolu-tions from the floor, were debated and voted on. There was one resolution brought to the chair late and it was not dealt with.

Resolution 2011 #1 (District 2 # 1)MOTION - AGM11 – 7: Chair/Ryan SommerfeldAs each person in the production line uses the CCIA tag which is supplied by the producer;Be it resolved that the SCA work with industry to have the cost of the tag reimbursed to the primary producer.

Moved by: Joanne Tuleta Seconded by: Bill Demyen Carried at districtResolution defeated

Resolution 2011 #2 (District 3B #1)MOTION - AGM11 – 8: Chair/Kelcy ElfordWhereas the Cattle Marketing Deductions Fund (CMDF) was established to support various promotional and research activities that benefit the cattle industry in the province; andWhereas the Saskatchewan Cattlemen’s Associations (SCA) promised the cattle producers of the province that the CMDF check-off fee would not increase as a result of the formation of SCA.Therefore be it resolved that the provincial check-off remain a mandatory refundable check-off and that any increase to the $1.oo check-off be ap-proved by the membership at the SCA Annual General Meeting.

Moved: Kelcy Elford Seconded: Ed Bothner Carried at districtResolution carried

Resolution 2011 #3 (District 3B #2)MOTION - AGM11 – 9: Chair/Doug GillespieWhereas Saskatchewan Cattlemen’s Association district elections are held the third week of October; andWhereas newly elected directors do not currently take office until the An-nual General Meeting in January; andWhereas meeting attendance and the board decision making process are negatively impact by the drawn out transition period;Therefore be it resolved that the new directors take office at the first meeting following elections.

Moved: Doug Gillespie Seconded Dave Fiddler Carried at districtResolution defeated

Resolution 2011 #4 (District 3B #3)MOTION - AGM11 – 10: Chair/Ed BothnerWhereas water is the life blood of our farms and ranches and we live in a semi-arid climate. Water is the most valuable resource. Be it resolved that it is uneconomical to deliver potable water. We must petition the province government to allow pipeline systems to be constructed for the purpose of supplying water for industrial agriculture and domestic use allowing recipients to treat their own water to potable standards.

Moved: Ed Bothner Seconded: Kelsey Elford Carried at districtResolution carried

Continued from Page 37

SCA 2011 Annual Report 39

Resolution 2011 #5 (District 3B #4)MOTION - AGM11 – 11: Chair/Ed BothnerWhereas the Saskatchewan Cattlemen’s Association (SCA) is the adminis-trative body which oversees the provincial check-off levy in a responsible and dutiful manner; and Whereas the governance of the SCA must be transparent and based on sound democratic principles;Therefore be it resolved that the SCA’s board meeting minutes, budgets and check-off allocations be published on their website in a timely manner.

Moved: Ed Bothner Seconded: Kelcy Elford Carried at district

MOTION - AGM11 – 12: Jason Dean/Ryan Thompson“To amend the resolution by removing ‘board meeting minutes’ from the resolution”Amendment defeated

MOTION - AGM11 – 13: Lynn Grant/ no seconder needed“To table until 2012 AGM, so board can collect more information and implications, then present findings at that meeting.”Resolution tabled until 2012 AGM

Action: board members

Resolution 2011 #6 (District 3B #5) MOTION - AGM11 – 14: Chair/Bill HuberWhereas Saskatchewan’s Canadian Cattlemen’s Association (CCA) directors have always been elected from the floor of the province members Annual General Meeting; andWhereas Saskatchewan has sent excellent representation to CCA with many directors becoming CCA President;Therefore be it resolved that the Saskatchewan Cattlemen’s Association continue to elect all Saskatchewan CCA Directors from the floor of their Annual General Meeting.

Moved: Robert Smith Seconded: Brian Braun Carried at district

Discussion of motion indicated that if accepted, the resolution would take force immediately, which would not allow potential CCA director candidates time to campaign for a position.

MOTION - AGM11 – 15: Pat Hayes/Ed Bothner “To amend the resolution to read ‘. . . floor of their Annual General Meeting, commencing in 2012.’ ”Amendment carried

MOTION - AGM11 – 16: Ryan Beierbach/Jody Tondell “To amend the resolution by removing ‘continue to’ so the resolution reads ‘. . . that the Saskatchewan Cattlemen’s Association elect all Saskatchewan CCA . . .’ ”Amendment carried

Request by Reg Schellenberg for a secret ballot. A secret ballot was then held.Resolution Carried

Resolution as amended reads:Whereas the Saskatchewan’s Canadian Cattlemen’s Association (CCA) directors have always been elected from the floor of the province members

Annual General Meeting; andWhereas Saskatchewan has sent excellent representation to CCA with many directors becoming CCA President;Therefore be it resolved that the Saskatchewan Cattlemen’s Association elect all Saskatchewan CCA Directors from the floor of their Annual General Meeting, commencing in 2012.

Discussion then followed with a recommendation that directors need to come forward with a policy dealing with how many CCA directors are elected at each AGM.

Action: board members

Resolution 2011 #7 (District 5 #1)MOTION - AGM11 – 17: Chair/no seconder came forwardWhereas the government has opened the sale of lease land to the general public in the North East Part of the province;Be it resolved that the SCA lobby the Provincial government to offer the land to local producers as a lease rather than sale to the general public.

Moved: Roy Miller Seconded: Neil Fenske Carried at district

No seconder came forward, so Resolution defeated

Resolution 2011 #8 (District 5 #2)MOTION - AGM11 – 18: Chair/Ken DemyonBe it resolved that the SCA works to reduce the market concentration in the retail, packing, feedlot and auction market sectors of the cattle industry.

Moved: Neil Fenske Seconded: Roy Miller Carried at district

MOTION - AGM11 – 19: Ken Demyon/Ryan Beierbach“To amend the resolution to read ‘. . . reduce the market consolidation in the retail . . .’ ”Amendment carriedResolution defeated

Resolution 2011 #9 (District 7 #1)MOTION - AGM11 – 20: Chair/Ryan BeierbachWhereas the Saskatchewan Cattlemen’s Association (SCA) mission is to provide effective representation to all regions of the province;Be it resolved that the SCA’s Annual General Meeting rotate annually be-tween Regina and Saskatoon.

Moved: Bob Mahon Seconded: Lorne Cholin Carried at districtResolution defeated

Resolution 2011 #10 (District 8 #1)MOTION - AGM11 – 21: Chair/Ernie WicksWhereas some livestock producers in certain areas of the province are deal-ing with excess moisture in their pastures, hay land and crop land; and gov-ernment programming has been established that not only ignores the needs of livestock producers, but also positions them at a disadvantage; andWhereas the SCA has put forward an ask to both levels of government for $150/breeding animal and $40/acre for pasture and forage acres;Be it resolved that the SCA also asks for $75/head for background feeders and freight assistance.

40 SCA 2011 Annual Report

___________________________Board Chair – Jack Hextall

___________________________Recording Secretary – Bill Strautman

Moved: Derek Denham Seconded: Wayne Paulson Carried at district- UnanimousResolution defeated

Resolution 2011 #11 (District 8 #2)MOTION - AGM11 – 22: Chair/Jody TondellWhereas current forage insurance programs are not effective;Be it resolved that the SCA work with the provincial and federal govern-ments in developing a forage insurance program.

Moved: Jody Tondell Seconded: Mark VanHaastert Carried at districtResolution carried with a large majority

Resolution 2011 #12 (District 9B #1)MOTION - AGM11 – 23: Chair/David StuartWhereas tagging mature bulls can be a health hazard to producers;Be it resolved that the SCA lobby Industry and Governments to exempt tagging mature bulls and allow including the tag with the manifest for transport and/or sale.

Moved: Darryl Usenik Seconded: Larry MacNab Carried at districtResolution defeated

Resolution 2011 #13 (District 9B #2)MOTION - AGM11 – 24: Chair/David StuartWhereas the cost of the RFID tag is solely borne by the primary producer and they are unable to pass that cost along;Be it resolved that the SCA lobby the Federal Government to pay the full cost of the RFID tags.

Moved: Tom Hougham Seconded: Aaron Houghman Carried at districtResolution defeated

Resolution 2011 #14 (District 9B #3)MOTION - AGM11 – 25: Chair/XXXXXXXWhereas beef Jerky is a high value product, high sales volume product especially to students, truckers from a lower value animal;Whereas, regulation prevent local producers from getting product onto the shelves;Be it resolved that our Provincial and Federal Governments change regulations to allow interprovincial movement of this product produced in Canadian Plants from Canadian Beef; andBe it also resolved that a portion of our check-off dollars from Saskatch-ewan be allocated to product development and promotion for products like this.

Moved: Tom Brown Seconded: Tom Stewart Carried at district

MOTION - AGM11 – 26: David Stuart/ no seconder needed“To table the resolution.”Motion carriedResolution tabled

Resolution 2011 #15 (From the floor #1)MOTION - AGM11 – 27: Neil Campbell/Paul BuckoBe it resolved that the SCA, by means of a public and political awareness program, pursue the completion of the AgriRecovery Program announced last July 8 by Mr. Ritz. The completion of this program would then include and provide compensation to Saskatchewan cow-calf producers who have faced a disastrous excess moisture situation in 2010. In that same

announcement, Mr. Ritz felt that other programs such as AgriStabililty, AgriInvest and Crop Insurance would also benefit producers in the disaster year. Through the same SCA program of public and political awareness, it should be explained why these three programs do not benefit the cow-calf producers. If a completion of the AgriRecovery Program is not possible, then a new AgriRecovery Program would have to be implemented.Resolution carried

Resolution 2011 #16 (From the floor #2)MOTION - AGM11 – 28: Bruce Holmquist/Brad WildemanWhereas Premise ID is a fundamental component of animal disease outbreaks; andWhereas the Alberta government has offered their Premise ID system to Saskatchewan;Be it resolved that the SCA lobby the Saskatchewan government to move forward with the implementation of Premise ID in Saskatchewan, utilizing the Alberta government’s software system.Resolution carried with a large majority

Resolution 2011 #17 (From the floor #3)MOTION - AGM11 – 29: Lynn Grant/Lloyd ThompsonWhereas the recent report “Evaluating the Economic Benefits From The Canadian Beef Check-Off” indicated that the industry can still get its best return per dollar invested from research;Be it resolved that the SCA increase it’s percentage of allocation to BCRC from 10 percent to 20 percent.Resolution carried with a large majority

Resolution 2011 #18 (From the floor #4)MOTION - AGM11 – 30: Mark Vanhaastert/Dennis BrownWhereas the reseeding component of the Sask Feed and Forage Program announced by the provincial government has not considered an allowable reseeding time requirement;Be it resolved that the SCA lobby the provincial government to make changes to the reseeding dates and program structure to allow for hay, forage and pasture land to receive the maximum flexibility to ensure all damaged acres from excess moisture be reclaimed in an acceptable time frame to producers.Resolution carried with a large majority

Resolution 2011 #19 (From the floor #5)MOTION - AGM11 – 31: Lynn Grant/Pat HayesBe it resolved that SCA encourage government to initiate a solution to the Supply Management sector of Canada that will not inhibit the ability of trade reliant commodities to access world markets.Resolution carried with a large majority

13 - Closing CommentsBruce Holmquist mentioned there is a Traceability Working Group report available from the SCA office.

MOTION - AGM11 – 32: David Stuart/no seconder required“To adjourn the meeting.”Motion carried

The meeting was adjourned at 5:45 p.m.

Continued from page 39

SCA 2011 Annual Report 41

resoLUtions For sCa 2012 aGM

RESOLuTION 2012 #1 (Resolution 2011 #5 (District 3B #4))

MOTION - AGM11 – 11: Chair/Ed BothnerWhereas the Saskatchewan Cattlemen’s Association (SCA) is the administrative body which oversees the provincial check-off levy in a responsible and dutiful manner; and Whereas the governance of the SCA must be transparent and based on sound democratic principlesTherefore be it resolved that the SCA’s board meeting minutes, budgets and check-off allocations be published on their website in a timely manner.

Moved: Ed Bothner Seconded: Kelcy Elford Carried at district

MOTION - AGM11 – 12: Jason Dean/Ryan Thompson“To amend the resolution by removing ‘board meeting minutes’ from the resolution” Amendment defeated

MOTION - AGM11 – 13: Lynn Grant/ no seconder

needed“To table until 2012 AGM, so board can collect more information and implications, then present findings at that meeting.”Resolution tabled until 2012 AGM

Resolution 2012 #2 (SCA District 8 – Resolution 1)Whereas ravens have become a significant problem to the cattle industry by killing newborn calves, picking at brands and causing other injury to cattle;

Be it resolved that the SCA approach SERM with a request to have ravens removed from the protected list so they can be controlled.

Moved by: Florence Chase CARRIEDSeconded by: Derek Denham

Resolution 2012 #3 (SCA District 7 – Resolution 1)Be it resolved that candidates in district elections must be present at their annual district meeting and election, or forfeit their nomination.

Moved by: Paula Larson CARRIEDSeconded by: Robert Story

Resolution 2012 #4 (SCA District 7 – Resolution 2)Be it resolved that Chairs of Committees within the SCA must be appointed from the current Board of Directors, to avoid additional costs and provide clarity on SCA policy.

Moved by: Paula Larson CARRIEDSeconded by: Ike Wipf

Resolution 2012 #5 (SCA District 7 – Resolution 3)Whereas each Co-op member brands their own cattle with their own brand to establish ownership;And those cattle are sold under the account of that member and that member pays check-off on those animals;

Be it resolved that cattle co-op members should be classified as independent owners and eligible to vote at SCA meetings.

Moved by: Les Hawken CARRIEDSeconded by: Wally Larson

Resolution 2012 #6 (SCA District 3b – Resolution 1)Whereas Saskatchewan Cattlemen’s Association district election ballots are counted at the conclusion of all district meetings; andWhereas the current process requires election candidates to travel out of their way to scrutinize the counting of election ballots.

Be it resolved that ballots are counted and the results announced the night of the election.

Moved – Doug Gillespie CARRIED Seconded – Neil Jahnke

___________________________Recording Secretary – Bill Strautman

42 SCA 2011 Annual Report

Resolution 2012 #7 (SCA District 3b – Resolution 3)Whereas bonds do not provide adequate protection against non-payment to Saskatchewan livestock producers.

Be it resolved that the SCA lobby the Government of Saskatchewan in addition to bonds, develop a Livestock Patrons Assurance fund (LAPF) similar to Alberta’s LAPF.

Moved – Harold Martens CARRIED Seconded – Doug Gillespie

Resolution 2012 #8 (SCA District 3a – Resolution 1)Whereas the SCA is the administrative body which overseas the provincial check off levy is responsible and dutiful manner, andWhereas the governance of the SCA must be transparent and based on sound democratic principals

Be it resolved that the SCA directors expenses and per diem allowances be made available for scrutiny to the SCA membership

Moved – Kelcy Elford CARRIEDSeconded – Robin Poirier

Resolution 2012 #9 (SCA District 3b – Resolution 2)Whereas the Cattle Marketing Deductions Fund (CMDF) was established to fund research, education, communications and promotion projects on behalf of Saskatchewan cattle producers, andWhereas the Saskatchewan Cattlemen’s Association(SCA) is responsible for the administration and collection of the CMDF provincial check off levy in an accountable and dutiful manner.

Be it resolved that the SCA allocates a maximum of twenty five percent of the annual provincial levy towards the administration and operation expenses of the SCA

Moved – Ed Bothner CARRIEDSeconded – Doug Gillespie

Resolution 2012 #10 (SCA District 3a – Resolution 3)Whereas Lobby expenses and international marketing expenses continue to increase andWhereas provincial check-off has not increased since 1987

Be it resolved that SCA increase the provincial check-off by $1.00

Moved: Ryan Thompson CARRIEDSecond: Vince O’ Hara

Continued from Page 41

SCA 2011 Annual Report 43