5 priorities for cattle feeders in 2019 

/15 Comments/in , , , , /by

Canada’s cattle feeders are urging politicians to consider the needs of beef producers in their platforms for the 2019 federal election. 

Agriculture and Agri-Food is a $100-billion industry that employs more than two million Canadians. The government has identified the sector as one of a few with the potential to spur economic growth.

Canada is in a prime position to benefit from increasing global demand for agricultural products, but the industry requires government support in removing constraints and barriers to growth. 

The National Cattle Feeders’ Association (NCFA) cites five urgent challenges:

Rural infrastructure

Most agricultural operations are in rural municipalities with a limited tax base to provide infrastructure. With little federal funding, some municipalities have implemented counterproductive measures, such as the livestock head tax in Lethbridge County. This is eroding the competitiveness of cattle feeding in southern Alberta.

It is crucial that the federal government identifies critical infrastructure investments in rural communities and dedicates financial resources to make them happen.

Labour shortage

A chronic labour shortage of about 60,000 workers is costing primary agriculture producers about $1.5 billion in unrealized farm cash receipts each year. 

Farmers have been forced to turn to the Temporary Foreign Worker Program to fill positions that cannot be filled by Canadians, but the process is expensive, time-consuming and complicated. 

The program’s processes need to be streamlined and clear a pathway set for permanent residency for temporary foreign workers.

Regulatory barriers

The industry is ever-evolving with new technologies and industry developments. But when regulations don’t keep pace, it hinders our ability to compete in the global marketplace.

In 2016, NCFA released a detailed study entitled The Competitiveness of the Canadian Cattle Feeding Sector: Regulatory and Policy Issues(PDF)

, Costs and Opportunities. It highlighted six areas – enhanced traceability, export regulation and impediments, veterinary drug harmonization, inspection practices, transportation and labour – where reforms could generate an additional $495 million in revenue across the beef value chain.

International market access

Canada exports 45 per cent of its beef production, and those exports are primarily to the U.S. To grow, the industry needs to expand into other markets, including the Asia-Pacific region and Europe.

Agreements such as the North American Free Trade Agreement (NAFTA), the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the Canada-EU Comprehensive and Economic Trade Agreement (CETA) should be a government priority. They will have a tremendous impact on our ability to trade effectively with these regions.

Consumer education and trust

Government and industry need to work together to ensure consumers are able to make informed choices when it comes to their food, whether the issue is environmental impact, health, or production methods.

Public education should be a pillar of any new national food policy, and Canada Food Guide revisions should reflect the most recent scientific, medical and nutritional research.

In an earlier blog post, we featured John Weekes, an independent business advisor who has worked with NCFA on international trade issues. You can learn more about his work in Meet the international trade expert who is helping support the beef industry abroad.

How funding for the New Era Beef Industry will benefit all beef producers

/13 Comments/in , , , /by

This fall, Alberta’s beef producers will vote in a province-wide plebiscite on the industry’s checkoff program. The issue at hand is whether the refundable payment should become non-refundable.

Why the checkoff is currently refundable

The beef industry checkoff has been around since 1969 as a levy paid to the Alberta Cattle Commission (later to become Alberta Beef Producers, ABP). Funds from the levy were used for industry research and marketing, but it was somewhat contentious from the start. In 2009, the Alberta government passed a bill making the checkoff payment refundable – meaning that producers were able to apply for full reimbursement.  

Why a change to the non-refundable checkoff makes sense

Despite these early challenges, ACFA believes the associations and organizations representing different sectors of the beef industry production chain must join together and work for the benefit of the entire industry.

In 2017, the Alberta Cattle Feeders’ Association and ABP reached an agreement founded on their shared belief in collaboration and mutual support between different beef production sectors. The New Era Beef Industry (NEBI) is the result of that agreement, and it heralds a return to a mandatory beef cattle checkoff, with revenues to be shared by ABP, ACFA and a new Alberta Beef Industry Development Fund (ABIDF).

The ABIDF will provide project funding for market development, research, education, consumer advocacy and industry collaboration, for a stronger, more profitable beef industry. The fund will be governed by a council comprised of three representatives selected by ABP and three selected by ACFA. The six council members will select a chair who is not a member of the board or of either organization.

ABIDF will help compensate for the loss of the Alberta Meat and Livestock Agency, which provided funds for industry development until it was shut down by the government in 2016.

Under the New Era Beef Industry, the total checkoff payment will be $2 per head of cattle. It will be distributed like this:

  • 5 cents to the remitters of the checkoff 
  • $1.30 to ABP 
  • 25 cents to ACFA 
  • 40 cents to the Alberta Beef Industry Development Fund (ABIDF)

If the plebiscite in the fall results in a vote for the refundable checkoff, ABP will continue to collect the mandatory checkoff, and producers can still request a full refund if they wish. If the plebiscite results in a vote for NEBI, it will provide a unique opportunity for crucial industry research and development.

The checkoff was just one of the issues that new ACFA board chair, Ryan Kasko flagged as important to cattle feeders this year. You can read about the other issues in ‘Finances are among cattle feeders’ top issues’. 

How protectionist policies for dairy and poultry could harm Canada’s beef producers 

/13 Comments/in , , /by

As NAFTA negotiations continue, Canada’s 60,000 beef producers are anxious to see a continuation of free and open trade within North America. Mexico and the U.S. currently import 80 per cent of our beef, and any impediment to that trade would severely impact the industry.

Ironically, North American trade for our beef is in jeopardy due to a Canadian protectionist policy involving a different sector. Supply management agreements protecting dairy and poultry producers are a source of serious contention in the negotiations.

What is supply management?

Supply management is a system whereby production quotas and import restrictions in the form of tariffs limit the availability of dairy, poultry and eggs. This helps keep prices at an artificially inflated level. 

Critics of the system argue that the system eliminates competition and raises prices for the consumer.

“The two planks of the system are quotas (producers need to purchase a licence to produce these commodities) and tariffs (taxes for incoming imports),” said Casey Vander Ploeg, vice-president of the Alberta Cattle Feeders’ Association (ACFA). “Both planks are needed to make the system work.” 

Why beef producers could be negatively impacted by dairy and poultry supply management

President Trump’s complaint with the supply management system is that it negatively impacts the ability of U.S. dairy, poultry and egg producers to export to Canada. To date, this has been a serious stumbling block in the negotiations, and officials are insisting that Canada dismantle the system.

Many of Canada’s beef producers are concerned that the supply management system protects a sector representing only seven per cent of our agricultural output, while putting the majority of Canadian agricultural exports at risk.

The role of the federal government in building agri-trade

The federal government has set a goal of reaching $75 billion in agriculture exports by 2025. “To achieve that goal, government needs to help us make our agriculture and agri-food products as competitive as possible within the international marketplace,” said Casey. “It’s important that supply management does not impede our ability to access those markets.”  

For a full explanation of why NAFTA matters to Canada’s beef producers, read ‘Cattle feeders head to Ottawa to support NAFTA negotiations’.

4 reasons the National Beef Strategy is important to Canada

/13 Comments/in , , /by

These are interesting times in the beef industry. Our producers face numerous challenges such as declining cattle numbers across the world and consumer concerns about environmental impacts and animal welfare. At the same time, new markets, including those in Asia and the Pacific region, are providing opportunities for industry expansion.

To ensure Canada’s beef producers are positioned to make the most of these opportunities — and overcome the challenges — industry organizations, including the National Cattle Feeders’ Association, came together to develop a National Beef Strategy. 

The goal of the strategy is to position Canadian beef producers for greater profitability and growth and to support their reputation for superior quality, safety, value, innovation and sustainable production methods.

The National Beef Strategy is based on four main pillars and goals:

#1 Beef Demand

To increase the value generated from each animal by 15 per cent. Recommendations include:

  • Product development and the use of under-valued cuts to maximize competitiveness
  • Building recognition and loyalty for the Canadian Beef Advantage brand
  • Pursuit of an ambitious international trade agenda
  • Increasing consumer confidence in food safety, quality and production practices
  • Communication of the sustainability message

 

#2 Competitiveness

To reduce cost disadvantages compared to main competitors by seven per cent:

  • Working with regulators to develop a supportive regulatory environment
  • Improving access to affordable resources such as skilled labour, animal health products, feed grains and forages and new technologies
  • Maintaining and enhancing research capacity
  • Continuous improvement in sustainability and efficient use of resources

 

#3 Productivity

To increase production efficiencies by 15 per cent through improvements in the following:

  • Genetic selection
  • Research and development
  • Enhanced information flow along the production chain through information technology and verification

 

#4 Connectivity

To improve communication within the industry and connect positively with consumers, the public, government and partner industries through:

  • Development of an industry communication strategy
  • Engagement with industry partners and stakeholders
  • Engagement with government, consumers, domestic and international organizations

 

“This strategy is something all stakeholders in the industry can buy into,” said Martin Unrau, co-chair of the National Beef Strategic Planning Group. “There’s strength in numbers and by working together we will build a stronger and more robust industry capable of meeting and responding to the opportunities now and into the future.”

You can read more about some of the challenges facing cattle feeders in ‘Pressing cattle feeders issues discussed with politicians during Ottawa trip’.

Working together to learn about conservation and agriculture

/14 Comments/in , , /by

The Ann and Sandy Cross Conservation Area, about 15 minutes southwest of Calgary, has long been a favourite field trip destination for local schools and educators.

Now, thanks to a collaboration with Inside Education – a non-profit group supporting multiple perspectives on environmental and natural resources in Alberta – the area could become a site for ongoing agricultural education.

“Inside Education and Cross Conservation bring complementary expertise to agriculture education,” said Kathryn Wagner, program director at Inside Education.

Inside Education has a suite of agriculture education programs, including classroom presentations, agriculture career summits, school garden grants and teacher professional development programs supporting the K-12 curriculum. In the coming years, they hope to add a provincewide youth agriculture education summit, field-based programs and classroom resources.

Cross Conservation offers experiential nature and discovery programs to children of all ages.

How a collaboration could work

The collaboration came through an introduction by the Alberta Cattle Feeders’ Association (ACFA).

Kathryn said initial ideas include credit-based programs, an agriculture demonstration site for both student programs and teacher professional development, and field trips that use the conservation area, local producers and other sites.

The goal is to provide up-to-date, relevant and meaningful agriculture education to inspire young people to be engaged environmental stewards and responsible decision-makers. 

“Working together with Cross Conservation, we can encourage students and teachers to consider how environmental, societal and economic values can be balanced on the landscape,” Kathryn said.

Representatives from Inside Education and ACFA plan to tour the Ann and Sandy Cross Conservation Area this summer.

You can learn more about agriculture education in How student-managed farming is teaching the next generation of beef producers, and How Olds College is preparing agriculture students for the future.

This is the third post in our Agriculture Education series. 

How student-managed farming is teaching the next generation of beef producers

/13 Comments/in , , , /by

In part two of our agriculture education series, we’re visiting the student-managed farm (SMF) at Lakeland College in Vermillion, Alberta.

Josie Van Lent, dean of Lakeland College’s School of Agricultural Sciences, explained that the student-managed farm is a fully operating farm with multiple enterprises – crops, dairy, sheep, purebred beef, commercial beef and beef research.

Founded in 1913, Lakeland College was Alberta’s first agricultural college. Its agriculture diploma programs include everything from agribusiness and general agriculture to animal science technology, veterinary medicine assistant and western ranch and cow horse (horses that work cows).

During the first year of the two-year program, students are able to benefit from the hands-on learning afforded by working on the various farms. At the end of the first year, they apply for management positions on their choice of operation. “They have to go through an interview process, just as they would for any other job,” said Josie. “Then, based on their interview outcomes, they are divided into teams who manage such important farm business elements as production, finances, marketing, sustainability, public relations and advocacy.”

Each team has a strong set of goals and objectives for their year, and all teams report to each other every week.

“Students learn more than just the obvious skills required by their industry,” said Josie. “They learn professionalism, teamwork and communication,” she said. “They must be able to think critically, and then get their point across to other members of the team. They learn how to run a productive meeting, how to advocate for their industry and how to create an environmental plan.”

Decision-making for the beef producer

An example of the kinds of decisions the students must make and justify, is how to handle weaned calves. “Students must decide whether to keep them on the farm or sell them. They explore all the options, do break-evens, and work out where the best potential for profit lies,” she said. “They’re taking what they’ve learned in the classroom, and applying it in the real world, where they will then get to experience the consequences and outcomes.”

Technology

The SMF has up-to-date technology thanks to sponsors and supporters, including New Holland Agriculture, Agri-Trend and Farmers Edge.

“Technology changes all the time, and we expose the students to it at every level of the farm,” said Josie, “Customer support is excellent, and the students get the hang of new technology very quickly.

“I think, in many ways, the most valuable skills we’re teaching them are the ones that don’t change very much – skills like critical thinking, decision making, financial management and succession planning,” Josie continued.

Lakeland College is hoping to supplement its two-year diploma program with a four-year degree program, accepting students from their own or other schools’ diploma programs.

Check out the first article in our agriculture education series: ‘How Olds College is preparing agriculture students for the future’.

How Olds College is preparing agriculture students for the future

/20 Comments/in , /by

Agriculture schools are helping to shape the next generation of farmers. This first installment in our agriculture education series takes a look at Olds College, located an hour north of Calgary.

Olds College Smart Farm

When Stuart Cullum joined Olds College as president in 2017, he did so with a vision. He wanted to create an environment in which students could learn about agriculture technologies and the practices of the future.

The outcome of that vision is the Smart Farm. Here, the college’s agriculture students learn about, and experience first-hand, technologies that are making farming more efficient, productive and sustainable.

“The idea is to create a cutting-edge learning environment for students,” said Jason Bradley, Smart Ag director at Olds College. Many early adopters are already using these commercially available technologies – such as artificial intelligence platforms that are used to monitor crop health and diagnose diseases. “But at some point we will also start to look at using our facility to test and validate pre-commercial technology,” said Jason.

“Much of the learning of the applicable industry practices and technologies came about through our work with the Smart Agri-Foods Supercluster,” said Jason. Although the supercluster was not awarded funding under the federal Innovation Superclusters Initiative, it remains active in the Smart Farm and uses the facility as a place to develop new Smart Ag practices.

“The Smart Farm allows our instructors to teach the theory, and values of these technologies in the classroom, and then be able to demonstrate them in a hands-on teaching environment,” said Jason. “Students learn how to install them, integrate software and hardware, analyze data and use it for optimum decision-making.”

Tech-savvy graduates will have the knowledge and skills to help companies adopt technologies they would otherwise not have been ready for. The Smart Farm also provides a place for  producers to see those technologies in action, and talk to each other, the companies providing the technologies, and instructors and students.

“We want it to be like a giant coffee shop,” said Jason.

Smart livestock production

Phase one of the Smart Farm is focused on crop production, and the second phase – to be designed this coming winter – will focus on livestock production.

“An important part of that will be developing relationships with the companies that have developed applicable technologies, and with producers who are using technologies that fit into the Smart Farm framework,” said Jason.

How the Smart Farm supports economic development and ag innovation

Jason explained that the Smart Farm could have significant impact across Canada in several different ways. “We see this as a way to clearly demonstrate what technology can achieve in agriculture. We can show other schools how to design and implement this type of education and this type of collaboration with industry. We can also quantify the GDP growth and jobs created from high tech, improved practices. We can then help other regions replicate that, and scale it.”

Stay tuned for future posts in which we will look at other educational institutions helping educate the next generation of farmers.

How membership in the World Organisation for Animal Health helps Canadian beef exports

/16 Comments/in , , /by

The 86th session of the general assembly of the World Organisation for Animal Health (OIE), which took place from May 20-25 this year in Paris, France, concluded with some positive changes for Canada when it comes to beef exports.

The Canadian delegation was led by Dr. Jaspinder Komal, Canada’s Chief Veterinary Officer (CVO) and included ACFA’s president and CEO, Bryan Walton.

Setting international standards for the livestock industries

The OIE is an international organization whose primary objective is to set international standards for animal health and the safe trade of animals and animal products.

It was created in 1924 in response to an outbreak of rinderpest disease in cattle in Europe. Since then, its membership has grown from the original 24 European countries to its current membership of 182 countries from around the world.

Member countries follow the standards created by OIE by incorporating them into their own national animal health legislation. The standards are recognized by the World Trade Organization, and are used as a guide to mediate trade disputes between countries.

How Canada takes a leading role in the OIE

We spoke with Dr. Komal to learn more about Canada’s participation in the OIE.

“The development of these standards is democratic,” said Dr. Komal. “Ad hoc working groups draft the initial standards, which are then sent to all member countries twice before the standard is adopted in a general assembly attended by official delegates from all member countries.”

Canada is known for its strong reputation and expertise in animal health. As a global leader and because of the importance of international standards to trade Canada actively influences the development and finalization of OIE standards by providing expertise on ad hoc working groups and specialist commissions, and by sending the official delegate to the general assembly where these standards are adopted. Canada also works with like-minded countries such as the U.S., New Zealand and Australia to influence the development of these standards.

Outcomes from the 86th general assembly

Dr. Komal explained that, in addition to the general assembly meetings, side meetings also take place between delegates to discuss trade issues. This year, Canada advanced trade discussions with 14 countries. Some of the positive trade outcomes include:

    • The Canadian and Chinese delegates met to discuss harmonization of the audit process for pet food or rendering products. They agreed to meet later this year to finalize this harmonization, recognizing each country’s systems and potentially streamlining our trade of pet food with China.
    • The US agreed to collaborate on the Northern Border Port entry project under which Canadian feeder cattle will not be unloaded from the trailer when presented for inspection at the US port of entry. This will help streamline cattle movements across the Canada–US border and address animal welfare issues.
    • The U.S. delegation recognized Manitoba as being free from bovine tuberculosis, which means that breeding cattle being exported to the U.S. no longer require testing.

Dr. Komal concluded by saying, “It’s important to feed the world, and the OIE standards help protect against diseases that can be transmitted from one animal to another, and from animals to humans.”

Next week on this blog we will learn more about Dr. Komal’s role as Canada’s chief veterinary officer.

How a verified quality assurance initiative that boosted Canada’s wine industry could have lessons for beef producers

/21 Comments/in /by

This is the third post in our Spotlight on the Speakers series, featuring speakers from February’s Alberta Beef Industry Conference.

This week we spoke with Mark Sheridan, president of Hester Creek Estate Winery in B.C., to learn more about the Vintners’ Quality Alliance (VQA).

The wine industry’s VQA program was instigated in the late 1980s when NAFTA eliminated the differential tax structure. At the time, Canadian wine producers lost their preferential tax rates, and realized they needed a recognizable quality standard to give their industry an edge with consumers.

“It gave us instant credibility on the worldwide market because it’s a verified quality standard that is in line with other standards from around the world,” said Mark.

How a similar program could work for beef producers

The wine industry’s quality assurance program assures consumers that they are buying a product that will meet their expectations.

“Consumers are increasingly wanting to know the story behind the wine – Where is this wine from? Where were the grapes grown? What makes that area unique and important?” said Mark.

VQA

Consumers also want to know where their beef comes from, how it was raised, and how it was cared for. The beef industry’s Verified Beef Production Plus (VBP+) program has the potential to provide consumer assurances in a similar way to VQA, but is currently evolving and has not yet attained certification from a recognized certifying body.

Another program that provides the assurances demanded by today’s consumer about animal health and welfare is the National Cattle Feeders’ Association’s Canadian Feedlot Animal Care Assessment Program, which is certified by the Professional Animal Auditor Certification Organization (PAACO) and recognized by both the Canadian Roundtable for Sustainable Beef and the National Farm Animal Care Council.

How would a quality assurance program differ from beef grading?

In an earlier post we explained how beef grading provides a quality rating for individual cuts of beef. A quality assurance program could provide the deeper level of information increasingly demanded by consumers – for instance, where the beef comes from and whether it was raised humanely.

In a highly competitive global marketplace it would give a further edge to Canada’s beef producers. “We have the best beef in the world so let’s take advantage of all the good things we do and position our product to get the best return we can”, says Bryan Walton, president and CEO of the Alberta Cattle Feeders’ Association.

Ottawa meetings bring cattle feeder issues to government’s attention

/20 Comments/in , , , /by

Each year, at its February board meeting, the National Cattle Feeders’ Association (NCFA) creates an Ottawa Engagement Strategy. This strategy provides a framework for four separate meetings in March, May, September, and November with federal decision makers, including MPs, ministers, parliamentary secretaries, staff, and house committees.

The strategy allows NCFA representatives to advocate for cattle feeders across Canada on major issues such as trade, regulations, labour, and infrastructure.

During the 2018 March and May meetings, the NCFA met with Patty Hajdu, Minister of Employment, Workforce Development and Labour, and with Lawrence MacAulay, Minister of Agriculture and Agri-Food, as well as more than 50 MPs and government officials.

The issues explained

The major opportunities and challenges that form the focus of this year’s meetings include the following:

Opportunities for growth

Barriers to growth

  • Consumer education and trust – To get the government engaged in consumer education, helping ensure, through the Canadian Food Policy, that consumer choice is “informed”, based on facts and science.
  • Labour shortages – To ensure that Canada’s agricultural producers and meat processors have access to the labour they need.
  • Rural infrastructure – To facilitate infrastructure development so that agriculture ties into broader provincial, regional, and national networks.
  • Regulatory barriers – To continue updating regulations so they reflect the day-to-day realities of beef production and keep pace with technological changes and ongoing innovations.

Progress made during the consultations

In early May, Rodger Cuzner, parliamentary secretary for labour, chaired a day-long roundtable on labour needs in agriculture and agri-food. It was announced that the government will no longer require separate Labour Market Impact Assessments (LMIAs) for worker transfers or replacement workers. This removes one of the many Temporary Foreign Worker Program (TFWP) complexities.

Bureaucrats administering the TFWP are currently holding consultations with agriculture across Canada, with meetings in Ottawa, Calgary, Saskatoon, Winnipeg and other cities. Key issues with the program will be raised during the meetings.

As more meetings are held later this year, we will continue to provide updates.