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Beef producers vote to keep refundable check-off

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Alberta’s beef producers have voted by a narrow margin to keep the mandatory beef check-off refundable.

A plebiscite on the issue was held between Oct. 19 and Nov. 27. Preliminary results showed that 51.3 per cent of producers voted to keep the refundable check-off. Final results will be shared on Dec. 11, after a two-week period during which members can contest the results.

The check-off is a levy paid to the Alberta Beef Producers (ABP), which is used to fund industry research and marketing. The levy is mandatory, but producers may apply for a full reimbursement.

The Alberta Cattle Feeders’ Association (ACFA), and ABP were recommending a return to a non-refundable check-off to fund the New Era Beef Industry. Revenues from the non-refundable check-off would have been shared between ABP, ACFA and a new Alberta Beef Industry Development Fund (ABIDF), providing project funding for market development, research, education, consumer advocacy and industry collaboration.

Moving forward

Even though the plebiscite didn’t deliver the hoped-for result, it highlights the value of member-driven organizations that do not stand still. The organizations will now focus on moving forward with securing funding for industry research and marketing projects. ACFA will continue with its efforts in lobbying, advocacy, policy development, industry development, and other activites. As individual organizations and as an industry, the goal is to persist in the pursuit of continuous improvement.

“I want to thank everyone who took the time to engage in the discussion and to vote in the plebiscite,” said Ryan Kasko, ACFA chair. “ACFA will continue to work in a collaborative fashion with ABP, drive operational efficiencies, and work diligently with partners to ensure the health of the industry.” 

Alberta’s beef industry faces remarkable potential and ACFA will continue to take the lead and leverage opportunities for the benefit of its members, the cattle feeding sector, and the industry as a whole.

You can read more about how funds from a non-refundable check-off would have been used in ‘How funding for the new era beef industry will benefit all beef producers’.

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

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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’. 

6 issues cattle feeders will discuss at the Alberta Beef Industry Conference

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Beef producers from all over Alberta will convene in Red Deer next week for the Alberta Beef Industry Conference.

This annual event is a chance for industry members to find out what’s new and network with others in the industry. As the event approaches, here’s a look at some of the pressing issues ACFA has been following, and that industry members will likely discuss.

#1 The Canadian Agricultural Partnership (CAP)

The government has allocated $3 billion to invest, over the course of five years, in five areas: innovation and research; environmental sustainability; risk management; product and market development and diversification; and public trust. ACFA will look at devising projects and programs to advance the cattle feeding industry, which could attract funding under CAP.

#2 Labour

The Federal Department of Employment and Social Development Canada (ESDC) is currently reviewing the Temporary Foreign Worker Program. This program is a life-saver for cattle feeders when they are unable to find workers from within the Canadian workforce. Past government reviews have accepted ACFA recommendations but there is still room for improvement.  ACFA will continue to be engaged in this file.

#3 Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)

Last month the government announced it will sign onto the new CPTPP trade agreement. This is good news for the beef industry and should result in reduced tariffs in a number of export markets, especially Japan. ACFA will continue communicating with government to stress the importance of the agreement for Canada’s beef industry until it is fully approved and ratified by Parliament.

#4 Other trade issues

NAFTA and trade with China are two other pressing trade issues of great importance to cattle feeders. In June 2016, the U.S. secured approval from China for greater access to that market. Canadian producers need the same access. A new pilot program to export fresh and chilled Canadian beef to China is expected in 2018, but ACFA will continue to press for the same access given to the U.S.

#5 Competitiveness

About 10 years ago, ACFA commissioned a study to assess the competitiveness of cattle feeding in Alberta. The industry’s ability to compete effectively in the international market will continue to be a priority and there will be discussions about whether it is time to update this study.

#6 Industry governance and financing

The mandatory levy on beef sales, known as the check-off, is used to fund research and marketing activities on behalf of the entire industry. ACFA and the Alberta Beef Producers (ABP) have come together to devise a new governance and funding model for the provincial beef industry, and its use of check-off dollars. A plebiscite may be required later in 2018 for a final decision.

As well as conversation and networking, the conference also features a full program of speakers, including former Prime Minister Stephen Harper.

For anyone interested in Alberta’s beef industry, its challenges and opportunities, this is a must-attend event.