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Carbon pricing and the beef industry: how will Canadians feel the effects?

Businesses across Alberta are bracing for the new carbon tax, wondering what effects the levy will have on their bottom line. So, when Jennifer Winter joins us at the Alberta Beef Industry Conference to speak about the cost of emissions pricing, the interest will be high. Jennifer is the director of energy and environmental policy at the University of Calgary, and we asked her for a few insights into the potential costs for the beef industry.

Jennifer Winter at the Alberta Beef Industry ConferenceJennifer explained that, since 2007, emissions from large emitters have been subject to a levy, but starting in January 2017, this system changed to a broad-based carbon tax on emissions from the combustion of fossil fuels.

“This means that, across Alberta, individuals and companies are going to be paying more for gasoline, diesel, natural gas and other fossil fuels,” said Jennifer. “For the agricultural sector, farm fuel is exempt, and so the impact will mainly be felt through natural gas price increases and indirectly through increased pricing from suppliers as they respond to the carbon tax.”

“The impacts will depend on how much fossil fuels each operation uses, and it is possible the carbon tax will make some businesses unprofitable,” continued Jennifer.

In addition to the exemption on farm fuels, the government has also placed a cap on the price of electricity.

How the carbon tax will affect the beef on Canadians’ plates

The most likely cost to Canadians will be an increase in emissions-intensive goods and services, such as gasoline. As for beef? Time will tell how much of a price increase Canadians will see at the store, or whether supply will be affected.

Check out ‘5 feedlot issues to watch for in 2017’, to learn about other issues that could affect Alberta’s beef industry this year.

Meet the team: Ryan Kasko, vice-chair of the board

Here at the Alberta Cattle Feeders’ Association we couldn’t truly represent the interests of our industry without input from our board of directors. Comprised of the men and women who work in the cattle feeding industry every day, our board helps provide direction for all our activities.

For this week’s post, we sat down with Ryan Kasko, CEO of Kasko Cattle Company in Coaldale, Alberta, and vice-chair of ACFA’s board of directors, for another installment of our meet the team series.

Ryan grew up just outside Coaldale, the son of a cattle dealer, but it wasn’t until after graduating from the University of Lethbridge, with a bachelor of management degree, that he became involved in the industry himself. At that time he joined his father’s business, and two years later they decided to buy a feedlot together.

That was 20 years ago, and Kasko Cattle Company now has feedlots in four different locations. As it has expanded, it has also provided opportunities for other family members – Ryan’s wife, Shannon, is the office manager, and his brother and brother-in-law, and their wives, also work in the business.

“It’s an exciting industry to be in,” said Ryan. “The technologies we are using today are really sophisticated, and we’ve made significant improvements over the last 20 years, in the way we manage people and how we take care of the animals – it’s an industry that’s just been constantly changing and it’s great to be a part of that change.”

Helping the ACFA represent a changing industry to the government

Ryan has been on the ACFA board for five years now, a responsibility he takes very seriously. “It’s important to serve the industry,” he said, “and I’ve done that in different organizations through the years. I think the ACFA does a very good job representing cattle feeders in Alberta and I thought it was important I take my turn.”

“There’s been a lot of things going on recently,” continued Ryan. “New laws around labour standards and safety, and initiatives like the carbon tax have significant impacts on our operations. The ACFA works with government to help them understand the industry, and what we do every day – to help them make decisions that are going to work for our industry and the people involved in it. As a board, we help provide the association with direction.”

The Kaskos at home

With four children – one in middle school, two in high school and one in his first year of college – Ryan and his wife have a very busy family. They enjoy watching basketball together, and while his kids also play, Ryan says that watching is enough for him. For stress relief, though, he plays squash and competes in triathlons.

In other posts in our meet the team series, we introduced you to Bryan Walton, CEO, Page Stuart, past board chair, Martin Zuidhof, board chair, Casey Vander Ploeg, manager of policy and research, and Jennifer Brunette, manager of events and member services.