annual - ontario beefbfo is involved in a wide range of issues and initiatives that are important to...
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A N N U A L R E P O R T 2 0 1 9
A BOLD NEW PATH
FOR ONTARIO BEEF
Who We Are
Beef Farmers of Ontario (BFO) represents over 19,000 beef farmers in Ontario and is the leading organization in Ontario working with all beef farmers to develop and support landmark achievements that move Ontario’s beef industry forward
sustainably and profitably. BFO is involved in a wide range of issues and initiatives that are important to all stakeholders within Ontario’s beef industry which include industry sustainability,
trade, animal health and care, environment and food safety.
Message from the President................................................................................................................................4BFO Past Presidents ............................................................................................................................................. 62018 Board of Directors ...................................................................................................................................... 7Message from the Executive Director.................................................................................................................8BFO Staff..................................................................................................................................................................10
BFO Reports
Government Relations..........................................................................................................................................12Research & Innovation..........................................................................................................................................16Communications & Engagement.......................................................................................................................18Regional Marketing Initiative.............................................................................................................................20Committee Reports.............................................................................................................................................24Ontario Feeder Cattle Loan Guarantee Program...........................................................................................26Ontario Beef Breeder Program.........................................................................................................................28Market Statistics....................................................................................................................................................31
Industry In Review
AgSights.........................................................................................................................................................46Beef Cattle Research Council...........................................................................................................................48Canada Beef ........................................................................................................................................................50Canadian Beef Check-off Agency....................................................................................................................52Canadian Cattlemen’s Association..................................................................................................................54Canadian Cattle Identification Agency...........................................................................................................56Farm & Food Care Ontario..................................................................................................................................60Livestock Research Innovation Corporation..................................................................................................62Ontario Cattle Feeders’ Association...............................................................................................................64Ontario Beef Cattle Financial Protection Fund..............................................................................................66
BFO Financial Reports
Audited Financial Statements............................................................................................................................672019 Preliminary Budget....................................................................................................................................80
Table of Contents
I am pleased to share that our organization
and the Ontario Cattle Feeders’ Association
have come together with one common goal:
increase the market penetration of Ontario
beef. To do this, our two organizations plan
to combine marketing efforts into one joint
marketing committee that will focus on
increasing the market share of all Ontario-
branded beef products, both here at home
and abroad. By working together, we will
avoid duplication of costs, making best use
of producers’ funds, while ensuring sharper
focus and better results for Ontario’s beef
farmers.
National Involvement
The BFO Board and staff are fully engaged
in all national organizations. We have
representation on all five committees plus
the executive and board of the Canadian
Cattlemen’s Association’s (CCA). We were
very supportive of Quebec rejoining as a
member of CCA this year. We also work very
closely with CCA’s Ottawa office when we
do “fly-in” lobby days in Ottawa. Along with
the board of the Canadian Beef Check-off
Agency, Jack Chaffe was acclaimed to one of
only two producer positions on the Canada
Beef marketing committee. We bring the
Ontario perspective and priorities to the Beef
Cattle Research Council (BCRC), the Canadian
Roundtable for Sustainable Beef (CRSB),
the Verified Beef Production Plus Program
(VBP+), the Canadian Cattle Identification
Agency (CCIA) and the Canadian Beef Value
Chain Roundtable (BVCRT). National beef
organizations are understandably dominated
by Western Canada and heavily influenced
by government and industry. It is critical that
we continue to send strong voices to ensure
the interests of the Ontario producer are not
dismissed or simply overlooked.
The Canadian Beef Industry Conference
(CBIC) came to London, Ontario in 2018, under
the theme Driving Demand. BFO hosted the
farm tour showcasing Ontario beef production
to our colleagues from across Canada. This
was the first exposure to indoor feedlots,
tile drainage, and high-density rotational
grazing for many participants. To end the
day, we shared a meal of Ontario Corn Fed
Beef. Altogether, approximately 500 people
attended the conference, which will return to
Calgary next year. The success of the event
held in Ontario is due in large part to Tammi
Ribey, CBIC chair, and LeaAnne Wuermli and
the BFO staff who worked tirelessly on this in
addition to their regular duties.
This year the National Check-off Agreements
governing the $1.00 national check-off in
Ontario were also approved and signed.
MESSAGE FROM THE PRESIDENT
4 I BFO ANNUAL REPORT 2019
Committee/Board Appointments
This year, as the board sought to minimize
the projected loss while still moving ahead
with parts of our strategy that were felt to be
important to the industry, the board looked at
reductions in many areas of our operations. In
addition to limiting support for some external
groups, there was a serious attempt to reduce
the number of committee days for board
members. Committees such as Government
Relations, Cow Herd Expansion, and
Environment were disbanded and their work
was absorbed by the board in our regular
meetings. The hope is that by reducing
the number of days active board members
need to spend on industry business, more
producers will be willing to seek a board
position in the future.
Government Relations
Ontario elected a new government this year,
and I have since had several opportunities to
meet with The Honourable Ernie Hardeman,
Minister of Agriculture, Food and Rural Affairs
both at Queen’s Park and on the road at
various roundtables. We discussed all of
the concerns unaddressed by the previous
government, and the need for the PC Party’s
campaign commitment of more money for
the Risk Management Program (RMP) to be
realized soon. We brought to his attention
the drought conditions that plagued many
beef farmers this year. Minister Hardeman
did caution against asking the government
for money as there is none. The government
is looking at “zero cost” ways to support
agriculture, with a focus on easing regulatory
burden.
At the International Plowing Match, I met with
our new Premier, Doug Ford, who indicated
that he was very positive about and very
supportive of agriculture in Ontario saying he
and the PC party will continue to do their part
to protect Ontario farmers and farm workers.
Richard Horne, BFO Manager of Policy
and Issues, and I attended the Business
Risk Management (BRM) Programs federal
consultation held in Ottawa in April. There
were only eight producers there with the rest
being policy staff from various organizations.
The format of the consultation was a formal
presentation followed by break-out sessions.
The consensus of the participants was that
the process has to continue beyond July in
order to make meaningful changes.
On top of this, I have spent several days in
Ottawa and at Queen’s Park meeting with
elected officials, presenting our position
on items such as the proposed transport
regulations, traceability and the food guide
revisions. I have also assumed the role of
Chair of the Ontario Agriculture Sustainability
Coalition (OASC), which defends and seeks
improvement to RMP.
The Passing of Garnet Toms
It was with great sadness that we experienced
the sudden loss of BFO Director Garnet Toms,
who passed away on May 20th. His quiet, yet
thoughtful, demeanor, and his dedication and
passion to improving Ontario’s beef sector
are greatly missed around the board table by
his fellow BFO Directors and staff, and by all
who knew him.
Looking back, I feel fortunate to have met so
many people on your behalf. While progress
is not as rapid as I would like, I accepted
this challenge knowing that would be so. I
will continue to advocate strongly for those
items that can make a real difference in our
businesses. I am very proud of the board
of directors, the attitude with which they
approach every issue, and the hard decisions
that we have needed to make this year.
Equally, I am honoured to work with such a
dedicated staff. These talented men and
women have chosen to spend part of their
career pursuing objectives that will make our
lives better and for that we should be grateful.
Joe HillBFO PRESIDENT
BFO ANNUAL REPORT 2019 I 5
1963 Bruce Mehlenbacher, Haldimand
1964 Ross Beattie, Simcoe
1965 George Morris, Kent
1966 Harvey Ackert, Bruce
1967 - 1968 Walter Beath, Ontario County
1969 Vern Kaufman, Oxford
1970 Lawrence Markusse, Lambton
1971 Hugh Grace, Lanark
1972 Tom Jackson, Peel-Halton
1973 Stewart Brown, Elgin
1974 Grant Burroughes, York
1975 Clarence Hardy, Middlesex
1976 Ronald Oswald, Bruce
1977 Archie Etherington, Huron
1978 Alex Connell, Wellington
1979 - 1980 Morley Shepherdson, Temiskaming
1981 Gus Lask, Ontario County
1982 Tony Noorloos, Lambton
1983 Robert Chapple, Kent
1984 - 1985 Gerhard Schickedanz, York
1986 Edgar Wideman, Waterloo
1987 Hugh Sharpe, Lennox and Addington
1988 Robert Gregson, Elgin
1989 Jim Magee, Oxford
1990 David Whittington, Peterborough
1991 Glenn Coultes, Huron
1992 Doug Gear, Dufferin
1993 Robert Kerr, Kent
1994 Ken Summers, Victoria
1995 Harvey Graham, Durham East
1996 Dale Pallister, Grey
1997 Linda Barker, Haldimand
1998 Bob Dobson, Renfrew
1999 Darlene Bowen, Temiskaming
2000 Stan Eby, Bruce
2001 Dick van der Byl, Glengarry
2002 Mike Buis, Kent
2003 - 2004 Ron Wooddisse, Wellington
2005 - 2007 Ian McKillop, Elgin
2008 - 2009 Gord Hardy, Middlesex
2010 - 2011 Curtis Royal, Simcoe
2012 - 2013 Dan Darling, Northumberland
2014 - 2015 Bob Gordanier, Dufferin
2016 - 2017 Matt Bowman, Temiskaming
BFO PAST PRESIDENTS
6 I BFO ANNUAL REPORT 2019
JOE HILL PresidentFeedlot DirectorFergus, ON
CCA Director
ROB LIPSETTVice President Backgrounder DirectorAnnan, ON
CCA DirectorBCRC Director
JORDAN MILLER Northern DirectorKagawong, ON
TOM WILSONFeedlot DirectorCorunna, ON
CORY VAN GRONINGEN Southern DirectorCayuga, ON
JASON LEBLONDDirector At-LargePowassan, ON
JASON REID Cow-Calf DirectorThunder Bay, ON
CCA Director
DAVE CAVANAGH Cow-Calf DirectorEnnismore, ON
DAN DARLINGInterimEastern Director Castleton, ON
CRAIG MCLAUGHLIN Cow-Calf DirectorForesters Falls, ON
CCA Director
JACK CHAFFE Feedlot DirectorMitchell, ON
Canada Beef Director
KIM SYTSMA Director At-Large Athens, ON
CCIA Director
2018 BOARD OF DIRECTORS
BFO ANNUAL REPORT 2019 I 7
strengths and avoid duplication of costs to
make the best use of producers’ funds, while
ensuring sharper focus and better results for
Ontario’s beef farmers.
This marketing initiative to strengthen
Ontario’s beef industry needs to be carried
out on a larger scale than we have the current
resources to cover. Both organizations
support and ask producers for an increase
of $1.50 to the provincial check-off. When the
increase is approved, $1.25 of this will fund
the joint marketing committee and 25 cents
will be directed to BFO to support producer
and consumer engagement activities.
BFO continues to pay the full share of its dues
to the Canadian Cattlemen’s Association
(CCA), as well as its full share of the CCA
legal fees related to trade and market access.
These amounts are paid from provincial
check-off and always have been.
If we can lift the price for finished beef animals,
we have the historical data to support that
there is a very close correlation between a
rise in finished prices and a rise in calf prices.
More stability in the finished animal price will
lead to more stability in the calf price. Our
strategy is designed to support the Ontario
beef industry across all sectors.
Working with a New Provincial Government
The 2018 Ontario provincial election brought
MESSAGE FROM THE EXECUTIVE DIRECTORThis is a very important AGM you are
attending. You have a chance, as farmers,
to choose between committing to transform
your industry or staying status quo in an
unforgiving marketplace. Make sure you
take the time to ask the questions that are
important to you before you cast your vote.
The Board of Directors of the Beef Farmers
of Ontario (BFO) and the Board of Directors
of the Ontario Cattle Feeders’ Association
(OCFA) are pleased to announce the
combination of their marketing efforts
into one joint marketing committee, which
will be keenly focused on increasing the
market penetration of Ontario-branded
beef products, both domestically and
internationally.
Jim Clark has agreed to manage this
marketing committee, and assumes the role
of CEO of Ontario beef marketing in addition
to his ongoing role as Executive Director of
OCFA. Each organization, BFO and OCFA, will
appoint three members to the six-member
committee. The committee will provide
overarching support and promotion for all
Ontario beef brands in regional, domestic
and international markets by working with our
farmers and partners in the processing, retail,
and foodservice sectors.
By combining the marketing efforts and
budgets of both organizations, we will unite
8 I BFO ANNUAL REPORT 2019
David S. StewartBFO EXECUTIVE DIRECTOR
about a change in the governing party. We
have been busy trying to meet many new
MPPs and provide them with background
on our issues. Premier Ford named Ernie
Hardeman to the Cabinet as Minister of
Agriculture, Food and Rural Affairs. Minister
Hardeman and the Ontario Government
have indicated a desire to reduce red tape
and unnecessary regulatory burden to help
industry and farmers remain competitive.
In our discussions with the Minister and
MPPs, we have been reminding them of the
importance to us of their campaign promise
to increase the funding for the RMP insurance
program.
Policy Brief
BFO’s policy department continues to address
proposed policies and regulations affecting
the beef sector by providing comments to
the appropriate government ministries on a
number of critical files. Current issues include,
but are not limited to: traceability, livestock
transportation, livestock emergencies,
antimicrobial use, feed regulations,
phosphorus loading in the Great Lakes,
climate change, and more “consultations”
on Ontario’s Risk Management Program, the
only program that can provide timely support
for non-supply managed livestock farmers.
Elora Beef Research Centre
BFO is extremely appreciative of the
investments made by both the provincial
and federal governments to support beef
research in the province. The reinvigoration
of this facility is extremely important to the
long-term strength and success of Canada’s
beef industry and the broader economy it
supports.
Construction continues to be relatively on
schedule at Elora to modernize the Beef
Research Centre facilities, which include two
new cow-calf barns, a new handling area,
renovations to the existing feedlot facilities,
a new site office and researcher facilities.
New beef research equipment has also been
purchased, including: feed intake monitoring
units, genomics lab equipment, greenhouse
gas monitoring equipment, metabolism lab
equipment, etc.
It is anticipated that the first wing of the
facility will be ready for use in late spring/
early summer this year (June 2019) with the
main herd of Elora cows moving into the new
barn when they are pulled off pasture.
BFO committed $1.5 million towards the
completion of the new build. The remaining
funds were contributed by AAFC ($2 million)
and OMAFRA ($12 million - approximately).
As of the end of December last year, BFO’s
commitment to the funding has all been
advanced to the province, and received with
thanks.
BUILD Leadership Development Program
Executing bold new paths requires strong
leaders. Don’t forget to promote this program
in your local county or district. When we have
enough applicants, we will run the program
again.
The Team Staff Members to Thank
It is very gratifying to be able, as an
organization, to attract such great employees,
and I look forward to their growth and
involvement in BFO for many years to come.
I also want to thank all of our staff for caring
about your businesses, and working so hard
for you. Their dedication makes the work we
do possible and enjoyable.
I really enjoyed the regional meetings and
county meetings that I attended over the past
year. I look forward to seeing many of you at
our AGM.
BFO ANNUAL REPORT 2019 I 9
DAVE STEWART Executive Director x [email protected]
CATHY GOLUBIENKO Executive Assistant x [email protected]
TAMMY PURDHAM Office Administrator x [email protected]
KATHERINE FOXSenior Policy Advisor x 236 [email protected]
RICHARD HORNE Manager of Policy and Issues x [email protected]
MICHAEL CAMPBELL Policy & Research Analyst x [email protected]
AMBER MCINTYREAccountant x 222 [email protected]
BETHANY STOREYCommunications Coordinator x [email protected]
LEAANNE WUERMLI Manager of Communications & Marketing x [email protected]
JAMIE GAMBLE Market Information Coordinator x [email protected]
JENNIFER KYLESenior Communications Specialist x [email protected]
BFO STAFF
10 I BFO ANNUAL REPORT 2019
DAN FERGUSON Manager of Producer Relations [email protected]
ANDY MILLAR Check-off Inspector [email protected]
CHRIS ATTEMABFO Contract Water Quality Specialist [email protected]
CHERYL RUSSWURM Provincial Supervisor: Ontario Feeder & Breeder Co-op Programs [email protected]
CATHY LASBY BFO Contract Ontario Beef Advertising Manager [email protected]
JACLYN HORENBERG Producer Relations Specialist [email protected]
BFO ANNUAL REPORT 2019 I 11
GOVERNMENT RELATIONS2018 was a year of change for the Province of Ontario. A change in
leadership, a change in the official reigning party at Queen’s Park,
and a change in government priorities. Premier Doug Ford was
elected Premier on June 7th and he in turn appointed Hon. Ernie
Hardeman as Ontario’s Minister of Agriculture, Food and Rural
Affairs.
While there are many new faces in the Legislative Assembly, there
are many MPPs who are familiar to us and with whom BFO has
built a good rapport. BFO recognizes that continued engagement
with politicians, at all levels and of all parties, on issues that matter
to Ontario beef farmers is important and vital to the sustainability
of our industry. Meetings are being conducted with new MPPs
who are not familiar with the importance and value of Ontario’s
Risk Management Program (RMP) to farmers and with a number
of experienced MPPs who wish to be reminded of the important
elements of RMP and how to make it a more workable program
for farmers. Ontario’s new PC government committed to increasing
the limit on RMP by $50M per year starting in year three. The BFO
Board is hopeful that it will gain the support of MPPs to help move
this timeline ahead.
Other priorities BFO discussed with MPPs are the economic impact
of the increased ethanol content mandate on our sectors, the need
for the establishment of perimeter fencing and Crown land access
to support industry growth in the beef sector, land use planning
to protect valuable farmland, and improving Ontario’s Wildlife
Damage Compensation Program.
In July and September, BFO surveyed each county and district
across the province to get a sense of hay and pasture conditions
as a result of the dry summer and drought-like conditions that
impacted many parts of the province. After some timely rains in
the month of August in many parts of the province, the results of
our September survey showed conditions had improved across
much of the province, with 69% reporting improved forage
conditions. However, one third of counties and districts reported
that the majority of their region was still suffering from moderate
to severe drought conditions. Representatives in these regions
expressed serious concerns about the ability to meet fall and winter
forage demands. In response to these surveys, BFO leadership
approached Minister Hardeman to have him request relief through
tax deferrals. The livestock tax deferral provisions allow livestock
12 I BFO ANNUAL REPORT 2019
producers in prescribed drought, flood or excess moisture regions
to defer a portion of their 2018 sale proceeds of breeding livestock
until 2019 to help replenish the herd.
The annual International Plowing Match in Chatham-Kent on
September 18-22, 2018 was well-attended by Ontario party leaders.
Premier Ford, in his address to the IPM attendees, indicated that
he was very positive and very supportive of agriculture in Ontario
and that he and the PC party will continue to do their part to
protect Ontario farmers and farm workers. BFO President Joe Hill
participated in Minister Hardeman’s agriculture roundtable at the
IPM and Vice President Rob Lipsett attended the NDP breakfast
meeting with Opposition Leader Andrea Horwath and agriculture
critic John Vanthof. Joe attended the IPM plowing competition
and spoke with a number of MPPs there as well. He was also
approached by Liberal MPPs and spoke with Mike Schreiner, leader
of the Green Party and MPP for Guelph.
In addition to meeting with politicians and senior government staff
members, BFO also maintained its pace in 2018 responding to
numerous government policy changes and emerging legislation
being contemplated and/or implemented, some of which include
improving access to farmer compensation under the Ontario Wildlife
Damage Compensation Program, streamlining requirements under
the Ontario Feeder Cattle Loan Guarantee Program, and reducing
administrative burden of nutrient management requirements.
The federal election will be held on October 21, 2019 and there
are a number of key priorities impacting beef farmers that are still
outstanding. BFO Directors were at Parliament Hill in April and
November, 2018, meeting with MPs and senior ministry staff for
further discussions on the changes to farmer access to medically
important antimicrobials, proposed amendments to the livestock
transportation regulations, cost to farmers for the implementation
of traceability regulations, and Canada’s Food Guide changes in
the way red meat, beef and dairy products are being framed.
On a positive note, it was extremely important to the Canadian
beef industry to secure a Canada-United States-Mexico Agreement
(CUSMA) and establish confidence in cattle buyers in the long-term
stability of the market for the fall run. The CUSMA will come into
force the first day of the third month of all countries completing
their respective ratification process. As well, the Government of
BFO ANNUAL REPORT 2019 I 13
Canada ratified the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) securing Canada a coveted spot
amongst the first group of countries (Japan, Mexico, Singapore,
New Zealand and Australia) in the historic trade accord. The
growth potential for Ontario Corn Fed Beef and for other Ontario
beef products and brands in CPTPP markets is significant. BFO
is grateful to Minister Francois-Philippe Champagne and Minister
Lawrence MacAulay for supporting this historic agreement.
The value of open discussion with government cannot be
overstated. BFO Directors are active and committed to keeping
issues affecting Ontario’s beef industry top of mind in government.
However, MPs and MPPs need to hear from their constituents,
the grassroots of our organization, who can impress upon them
the value of stable business risk management programming to
your operations and who can show them that beef farming is very
important for local economies, both rural and urban. If you missed
the opportunity to meet with your local members of government in
2018, it’s not too late to reinforce the work of the BFO Board to help
make Ontario’s beef industry stronger.
14 I BFO ANNUAL REPORT 2019
BFO ANNUAL REPORT 2019 I 15
RESEARCH & INNOVATIONConstruction at the New Elora Beef Research Centre
While construction on the new facilities at the Elora Beef Research
Centre is progressing well, the scheduled opening is anticipated to
take place in the summer of 2019. Once construction is complete,
the new facility will feature 165,000 square feet of barn space with
the capacity to hold close to 400 animals. The facility will also
feature a state-of-the-art genomics lab, more than 200 individual
feed intake monitoring units, and precision research equipment
including: GPS animal monitors, rumen sensors to monitor pH
and temperature, new ultrasound technology, and greenhouse
gas monitoring equipment. In addition to the improvements being
made to the cow-calf facilities, upgrades are also underway for the
feedlot facilities and the Centre’s pasture capacity.
BFO Research Program
BFO sponsored or made commitments to 10 beef research projects
in 2018. The focus areas of the funded projects include:
• alternatives to growth promotants and ionophores;
• cow productivity and pre-partum cow health and
performance;
• calf health and weaning stress;
• genetic improvement with focus on feed efficiency and high
yield/high marbling animals; and
• cattle health during transport with focus on rest stops
Project descriptions and the results of all BFO funded projects can
be accessed under the “Research” section of our website.
16 I BFO ANNUAL REPORT 2019
BFO ANNUAL REPORT 2019 I 17
COMMUNICATIONS & PRODUCER ENGAGEMENTOntario Beef Magazine
Ontario Beef was published five times in
2018 (February, May, August, October and
December) and distributed to approximately
16,000 of BFO’s members, industry partners,
MPs and MPPs. The magazine provides
members of BFO and industry stakeholders
with timely information, updates on current
industry issues, upcoming events, market
statistics and more. We continue to update
our circulation database to better reflect our
active and current membership data with the
goal of ensuring all active members of BFO
are receiving this publication. If you have
had interruptions in receiving Ontario Beef,
please contact the BFO office to verify your
complete mailing address.
Bull-etin Board E-Newsletter
The Bull-etin Board e-newsletter was issued
weekly to our subscribers in 2018. The
e-newsletter captures the headlines of the
week, news releases, upcoming events and
weekly market information. If you would like
to receive the Bull-etin Board in your inbox,
please visit www.ontariobeef.com to sign up.
Sharecost Program
The Sharecost Program continues to be
a well-utilized program in support of local
producer and consumer engagement
activities. In 2018, 36 counties and districts
received a total return of just under $85,500.
Qualifying producer applications in 2018
ranged from educational workshops to bus
trips, while consumer activities included fall
fair involvement, local beef promotions and
community sponsorship.
Grazing Cover Crop Field Days
In an effort to continue cultivating partnerships
between beef farmers and grain farmers, BFO,
Grain Farmers of Ontario and OMAFRA ran
another series of field days in the fall of 2018.
Held in Omemee, Neustadt and Chatham,
the events had a combined participation of
over 60 farmers. The interactive field days
gave crop and beef farmers the opportunity
to see cover crops put to use as pasture
for beef cattle. Cover crops have important
environmental and economic value, and
these workshops featured farmers and
speakers who could share their knowledge
on the tools and resources available to help
integrate cattle into cover cropping systems
as an additional business opportunity on
farms.
Beef Youth Development Program
BFO continues to support and encourage
the involvement of young farmers in the
Ontario beef industry. As an example of
this, BFO continued to host the Beef Youth
Development Program in 2018, a program
offered to beef enthusiasts between the
ages of 18-35. In July, the program welcomed
thirteen participants to Eastern Ontario, in
Ottawa and Lanark Counties, to participate
in farm tours, hear from industry speakers
and analyze various farm business models.
A warm thanks to all of our farm hosts and
speakers for taking the time to participate in
this valuable program.
Canadian Beef Industry Conference
Pre-Conference Farm Tour
In August, the Canadian Beef Industry
Conference moved east to London, Ontario
for its third annual conference. BFO was
proud to be a bronze sponsor of the event
and host of the pre-conference farm tour
together with AgSights and the Ontario Cattle
Feeders’ Association. Over 100 farmers and
industry partners from across the country
participated in the one-day tour in southern
Ontario. Farm stops included Conlin Farms,
Van Osch Farms, Bluewater Beef, River
Point Cattle Company and Bee Zee Acres.
Thank you to all of our gracious farm hosts
for representing Ontario’s beef industry on a
national stage.
Partnership with the Ontario Association of
Food Banks
In 2018, BFO committed $20,000 in financial
support to continue its partnership with the
Ontario Association of Food Banks (OAFB).
Since the inception of the beef program in
2014, BFO and OAFB have provided over
512,000 servings of fresh ground beef to
Ontario families in need.
BFO’s support for local food banks is directed
towards the purchase of fresh beef products
from Ontario’s farmers and is leveraged
for matching funds from industry partners.
18 I BFO ANNUAL REPORT 2019
Through our joint partnership with OAFB, we
have distributed nearly 85,000 lbs of fresh
ground beef to 130 food banks across the
province, serving over 501,000 adults and
children annually.
bfoUP
In 2018, BFO initiated a young producer
networking group for existing and beginning
farmers who are interested in establishing
and expanding beef operations in Ontario.
Through the development of the bfoUP
initiative, BFO focused on hosting webinars
for interested farmers throughout the year.
Special thanks to all of our speakers for their
willingness to participate and share their
thoughts and insights on various topics. All
webinars are recorded and can be accessed
from the BFO website.
A bfoUP resource webpage was also
established in mid-2018 on the BFO
website to provide detailed information and
descriptions of resources and programs
available to farmers. This page provides easy-
to-find information and connects farmers with
available opportunities. BFO staff continue to
field many questions and inquiries from young
and beginning farmers who are looking for
information on beef farming and how to enter
the sector.
BFO ANNUAL REPORT 2019 I 19
Sponsorship & Events
BFO continued its support of a number of
initiatives throughout 2018. Participating in
tradeshows provides an excellent avenue to
connect with members to address industry
concerns, and to meet with consumers to
resolve misconceptions on food safety and
beef farming practices. BFO participated in
and/or supported the following events and
initiatives in 2018:
• AgScape
• Beef Industry Convention
• Beef Symposium
• Discovery Days – 4-H Ontario
• Canada’s Outdoor Farm Show
• Canadian National Exhibition
• East Central, Earlton and Quinte farm
shows
• Grey Bruce Farmers’ Week
• Junior Beef Heifer Show
• OAC Beef Science Club
• Ontario Outstanding Young Farmers
Program
• Profitable Pastures Conference
• Royal Agricultural Winter Fair
• Youth Forum
Social Media
BFO communicates with its members and
industry partners on Twitter, Facebook and
Instagram to provide industry updates and
share upcoming events. Engagement in each
of these platforms continues to grow.
BFO’s Twitter account, @OntarioBeef,
currently hosts 7,482 followers. In the final
quarter (Oct-Dec) of 2018 our content made
171,000 impressions (18,600/day). BFO’s
Facebook account currently hosts 3,285
followers with 3,256 page likes. BFO’s
Instagram account, @beeffarmersofon,
currently connects with 898 followers,
gaining more each day.
Webinar No.
Speaker(s) Registered Attended
1 Andrew Campbell, Fresh Air Farmer 116 63
2 Ryan and Allison Nesbitt, Cedardale Farms Ltd., “Making it Work” 107 59
3 Ken Schaus, Schaus Land & Cattle Company and Jack Chaffe, Chaffe Farms
98 50
4 Kara and Darold Enright, Enright Cattle Co. 59 28
5 Sandra Vos, “Starting from Scratch” 38 16
6 Sally Smith-Pelleboer, Ontario Beef Breeder Co-operative Program 43 19
TOTAL 461 235
bfoUP 2018 Webinar Results
REGIONAL MARKETING INITIATIVEBFO’s Marketing and Promotions (M&P)
Committee and staff focused on creating
resources to support the objectives of the
Regional Marketing Initiative (RMI) and
consumer engagement efforts in 2018. In
2019, BFO is in a good position to move
ahead with creating a strong presence for
Ontario beef with consumers. The completed
consumer research project by Hill + Knowlton
has begun to help shape the development
of a refreshed consumer Ontario beef brand,
website and consumer-relevant content.
A summary of 2018 activities is provided for
your review.
Collaborative Partnership Program
In an effort to stimulate industry alignment
and encourage collaboration with industry
partners and organizations to enhance the
overall impact of the RMI, BFO developed
a Collaborative Partnership Program (CPP).
Through this program, BFO considered
a 50 per cent cost-share investment with
Ontario beef farmers, processors, retailers,
distributors, industry associations and supply
chain partners in projects that demonstrated
alignment with the three strategic objectives
of BFO’s RMI. As of December 31, 2018, ten
applications were approved by the M&P
Committee since the inception of the CPP,
totalling $150,697 in committed funds. To
date, $51,160 in actual funds have been
reimbursed for six completed projects by the
following applicants:
• Artisan Farms Direct
• Enright Cattle Company (2)
• Flanagan Foodservice
• Penokean Hills
• Norwich Packers
Consumer Research
BFO’s Marketing and Promotions Committee
worked with Hill + Knowlton Strategies (H+K)
to complete BFO’s consumer research
project, which concluded in August with one
final focus group. The project from beginning
to end included key informant interviews with
15 industry partners, two consumer surveys
each with 2,000 respondents and two focus
groups held in Toronto.
Research results have been compiled
and have been put to work through the
development of messaging, website and
social media content, and provided credible
data to support BFO funding applications.
Ontario Beef Brand and Website Refresh
At the end of 2018, staff secured the services
of Rees + Stager in Kitchener to develop
a refreshed consumer brand, as well as a
new updated consumer website, both to
be launched in 2019. The existing Make
it Ontario Beef brand and website was
established in 2010. Since then, consumer
habits have changed, technology has
improved, and BFO’s investment in consumer
engagement and consumer research has
increased significantly. The key messages
and supporting facts developed through our
consumer research work with H+K will serve
as the foundation for all new web and social
content, and help facilitate a more effective
approach for engaging with consumers.
Wondering About Motion Videos
BFO is committed to increasing the demand
for Ontario beef and we believe to do this we
need to generate a stronger relationship with
consumers.
Several years ago, BFO, in partnership with
the Alberta Beef Producers, began the
development of an educational series of
science-based information for consumers
on important issues like animal care,
environmental impact and beef animal
nutrition. Over the years, our library of
resources has expanded to cover various
topics, including: Wondering About Animal
Care, Wondering About What Beef Cattle
Eat, Wondering About Greenhouse Gas
Emissions, Wondering About Hormones in
Beef, Wondering About Antibiotic Use and
Resistance in Cattle, and our new resource,
Wondering About Beef in Your Diet. The
resources are currently available in two
formats — online PDF and hard copy. While
the resources have been well received, we
believe the information has greater potential
for impact if the information could be shared
in a digital format. Through our own research
with H+K and additional research through the
Canadian Centre for Food Integrity and the
Ontario Federation of Agriculture’s research
20 I BFO ANNUAL REPORT 2019
on food literacy, we know that the millennial
generation is most interested in absorbing
information in a digital format. Therefore,
we have begun the creation of a consumer-
appealing, animated educational Ontario
beef video series transforming our existing
“Wondering About” resources into a digital
literacy campaign targeting the millennial
generation. Three videos (Wondering About
Animal Care, Wondering About What Beef
Cattle Eat, and Wondering About Beef in Your
Diet) will be released in 2019.
Environmental Stewardship Video
The Environmental Stewardship Award
recognizes farmers who have demonstrated
exceptional dedication to farming in
an environmentally sustainable way.
Farmers’ impact on the environment is
becoming even more important in the
eyes of consumers and the general public.
Demonstrating and communicating how
beef farming and pasturelands sequester
carbon and provide habitat for wildlife, as
well as farmers’ commitment to protecting
important waterways, needs to be shared
broadly. Sandra Vos, recipient of the 2018
Environmental Stewardship Award, was
featured in a video — to be released in 2019 —
that BFO will use to engage with consumers
online and through social media to address
environmental sustainability on beef farms.
Environmental Benefits of Beef
BFO received funding approval through the
Canadian Agriculture Partnership in late 2018
to begin a research project that will provide
credible and engaging evidence to support
our claims of environmentalism on beef
farms and the ecosystem goods and services
provided by beef farmers.
A literature review will gather information
from other fields or regions that helps
illustrate and quantify the environmental
value of Ontario beef production and their
associated grasslands. The areas that will be
covered include soil health, carbon storage,
GHG mitigation, nutrient run-off management,
biodiversity, wildlife habitat, and pollinator
health.
The gathered evidence and information will
be used to develop a marketing plan and
messaging for the purposes of promoting
Ontario beef to consumers and empowering
producers to tell their own stories about how
they provide ecosystem goods and services
in their communities.
With credible data, the Ontario beef industry
will be better equipped to convincingly
communicate the environmental value of
beef production and debunk myths about the
industry’s environmental costs.
This information will also be valuable
in discussions with government as we
highlight the diverse benefits – economic,
environmental and social – the Ontario beef
industry brings to the province and country.
Recipe and Video Development
To build BFO’s recipe library, and more
specifically video content, BFO worked with
Real Food Creative in Kitchener to develop
eight new beef recipes and recipe videos for
our new website, YouTube and social media
content. The focus for the development of
the recipes was on four areas: protein snacks
on-the-go, meals for a gathering, 30-minute
meals and recipes that are ethnically diverse.
The following eight recipes and recipe videos
were completed in 2018 and will be launched
in 2019.
• Lemon & Garlic Beef Zoodles
• Steak & Eggs Breakfast Tart
• Beer-Braised Beef Shank Pappardelle
• Jamaican Short Ribs Stew
• One-Bite Greek Meatballs with Tzatziki
Dipping Sauce
• Korean Beef Bibimbap
• Beef Steam (Bao) Buns
• Thai Curry Beef Soup
Validating Ontario Beef Terroir
In 2017, Oritain, an analytical company
and global leader in scientific traceability,
was contracted by BFO and the Ontario
Independent Meat Processors for a proof
of concept research project to determine if
their technology can be used to successfully
differentiate Ontario beef from imported beef.
Through the project, and with the participation
BFO ANNUAL REPORT 2019 I 21
REGIONAL MARKETING INITIATIVECONTINUED
of farmers and abattoirs, we gathered over
200 beef samples. Additionally, we tested
comparative samples from Alberta, Prince
Edward Island and the United States. This
proof of concept project concluded that
Oritain’s origin technology is suitably “fit for
purpose” to offer verification services of raw
beef for the claimed origin of Ontario.
With an established Ontario beef database,
for research purposes, BFO will test the
database against purchased product
identified as Ontario beef at retail through
a retail audit using a third-party for sample
collection. Findings from the project will
provide BFO with insight to determine if
mislabeling of Ontario beef is an area of
concern that needs to be addressed.
Partnership with the Ontario Independent
Meat Processors (OIMP)
BFO’s partnership with OIMP continued in
2018. BFO attended their Industry Day in April
and The Meating Place event in October.
During the fall event, BFO staff participated
with a tradeshow booth to provide resources
and connect with OIMP members. John
Baker, RMI Project Manager, also joined a
meet-and-greet lightning round networking
event on behalf of BFO, and participated in a
speaker panel to highlight BFO initiatives like
the Collaborative Partnership Program and
our Regional Marketing Initiative with OIMP
members.
Petals and Plates Event
In August, Flowers Canada hosted a unique
outdoor dinner event in a dahlia field at a
grower operation in Delhi, Ontario. BFO
supported the consumer event as a dinner
sponsor where Ontario beef short ribs were
the featured entrée for over 100 guests.
Pop-Up Union Station Event
In celebration of the twentieth annual Ontario
Agriculture Week on October 1-7, BFO joined
Farm & Food Care Ontario and a dozen
Ontario commodity groups to bring the farm
to Union Station. This Toronto transportation
hub sees 300,000 visitors daily, and that’s
where 40 volunteers and farmers held a pop-
up event to talk food and farming, answer
consumer questions, and most importantly,
thank them for buying local. In the morning,
breakfast sandwiches were passed out
to early morning commuters, and in the
afternoon, BFO staff helped pass out all-
Ontario snacks, including beef pepperettes
sourced from Norwich Packers, for the trip
home.
Registered Dietician Farm Tours
Together, BFO, Canada Beef and Farm &
Food Care Ontario hosted two tours for 61
Registered Dietitians (RDs) in the fall of 2018.
In September, Registered Dietitians from
SickKids, Toronto Public Health and other
Toronto locations visited the beef feedlot
of the Schaus Land & Cattle Company near
Alliston and were hosted by Paul Martin. In
October, a tour for RDs working in Loblaw
stores visited Gilbrea Farms near Hillsburgh.
Guests were toured through the seed stock
cow-calf farm by farmers Bob and Kate
Wilson. In an evaluation, over 95 per cent of
participants found the tours very valuable.
Participants also expressed that opportunities
like the farm tour program assist them in their
careers by better preparing them to answer
questions from clients about food or farming.
Breakfast on the Farm
BFO staff participated in the Breakfast on
the Farm event hosted by Farm & Food Care
Ontario on September 8th in North Gower at
the beef feedlot and grain elevator owned
by Dwight and Ruth Ann Foster and their
family. The event boasted an attendance
of over 2,000 attendees with more than
100 volunteers. BFO distributed Make it
Ontario Beef balloons for kids and consumer
resources. Visitors to the BFO booth were
22 I BFO ANNUAL REPORT 2019
BFO ANNUAL REPORT 2019 I 23
most concerned about hormones, antibiotics
and on-farm production methods. Special
thanks to the Foster family for hosting, to the
many beef farmers who helped to volunteer
and answer questions, and to the Ontario
Cattle Feeders’ Association for providing
lunch for the volunteers at the conclusion of
the event.
Beef Education
BFO staff and volunteers spent a total of
15 days in August and in November at the
Canadian National Exhibition and the Royal
Agricultural Winter Fair to meet with students
and visitors to the beef education areas.
BFO’s display at each fair focused on beef
cattle nutrition and how beef farmers care for
their animals, reaching thousands of visitors.
These venues provide an excellent forum to
have a conversation about agriculture with
urban consumers.
Social Media Engagement
2018 was a year of growth and engagement
on BFO’s consumer-facing social media
channels. In addition to the existing Twitter
account, an Instagram account was also
added to the mix. Staff developed a strategy
and content calendar to maximize and track
engagement and growth across all channels.
In the spring of 2018, the former
@MakeItOntarioBeef Twitter account was
re-named with the handle @OntBeef. The
Twitter following continued to grow, adding
an additional 108 followers between January
1st and December 31st, which brought the
count to 1,393 by the end of the year. On
Twitter, @OntBeef connects primarily with
influencers, chefs and other industry and
commodity stakeholders. With a more
structured and consistent social media
plan in place, engagement on content was
significantly increased. In the first quarter
(Jan 1 – Mar 31), content earned 18,900
impressions (210 impressions per day) and an
engagement rate of 0.6%, while in the fourth
quarter (Oct 1 – Dec 31), content made 63,300
impressions (695 impressions per day) with
an engagement rate of 1.1%. For context, a
“good” Twitter engagement rate is defined as
0.2% - 0.9%, so @OntBeef is well above that
now. This is made more significant due to the
fact that only an additional 100 followers were
added – this means there is an increasingly
engaged existing follower base, which is
positive.
In June, the @OntBeef Instagram account was
launched with a separate complementary
strategy to Twitter, which has been very well-
received with some great stats as a result.
On Instagram, @OntBeef connects with a
wide range of people, including consumers,
chefs, butchers, food bloggers, restaurants,
dieticians, health & fitness experts, celebrity
chefs, etc. Also, of note, 20% of the Instagram
audience is in the Greater Toronto Area, 61%
are between the ages of 25 and 44, and it is
a 60/40 split between female and male. From
mid-June to the end of December, @OntBeef
gained 579 followers, content made 43,124
impressions and had 25,839 unique views,
and the average engagement rate on
posts was 13.93%. That engagement rate is
excellent as anything between 3.5% and 6%
is considered high on Instagram. Part of this
is due to a new, smaller audience; as the
follower base grows, this number will likely
decrease to an extent, but by continuing to
actively engage with followers, the numbers
should continue to look good.
With the re-brand and the launch of the new
consumer website, there will be a number
of videos, recipes and other digital assets
released as well, which should go a long way
to continuing the upward trend of the BFO
consumer social media channels in 2019.
COMMITTEE REPORTSBFO Cow-Calf CommitteeSubmitted by Ken Mills, Chair
The BFO Cow-Calf Committee held two
meetings in Guelph in 2018. Ken Mills
(Wentworth) served as Chair and Jamie
O’Shea (Middlesex) served as Vice Chair of
the committee. Katherine Fox (BFO Senior
Policy Advisor) served as staff representative.
The committee worked on and provided
feedback on a number of issues, including:
• Provided recommendations on revised
election procedures for BFO’s Cow-Calf
and Feedlot Committees.
• Provided recommendations on BFO’s
new cow-calf profitability and cost-
of-production calculator for Ontario
producers, including the strategy for
sharing and promoting the tool.
• Reviewed and provided input on
2018 resolutions, particularly Access
to Veterinarian Services, Livestock
Medicines Course and Predation
Management.
• Discussed VBP+ and the Canadian
Roundtable for Sustainable Beef’s
sustainability certification framework.
• Discussed new rabies vaccination
requirements.
• Discussed manure spreading and the
“Timing Matters Regional Peer-to-Peer
Response” project.
• Discussed changes to the Ontario
Wildlife Damage Compensation
Program.
• Discussed cow herd expansion
challenges and activities.
• Provided input on new resources for
cow-calf producers on antimicrobial
stewardship and livestock medicines.
• Provided suggestions to a University of
Waterloo researcher regarding potential
technology and projects on monitoring
wildlife on-farm.
• Discussed the Ontario Cow-Calf
Benchmarking Study (University of
2018 Cow-Calf CommitteeKen Mills, Chair • Jamie O’Shea, Vice Chair • Dave Cavanagh • Craig McLaughlin • Jason Reid
Don Hargrave • Scott Honey • Jason Hurst • Mert Schneider • Greg Seed • Steve Thede
Guelph research project and producer
survey on animal health).
• Received a report from a University of
Waterloo researcher on a project on
sustainable beef certification.
• Discussed and provided input regarding
producer/industry events, including the
“bfo UP” program, cover crop grazing
workshops, Beef Cattle Code of Practice
sessions, Canadian Beef Industry
Conference and Beef Symposium.
24 I BFO ANNUAL REPORT 2019
2018 Feedlot CommitteeScott Cochrane, Chair • Scot Legge, Vice Chair • Jack Chaffe • Joe Hill • Tom Wilson
Bob Bennett • Paul Brown • Dave Cockburn • Steve Eby • Arden Schneckenburger • Matt Shortreed
BFO Feedlot CommitteeSubmitted by Scott Cochrane, Chair
The BFO Feedlot Committee met twice
in 2018. Scott Cochrane (Brant) served as
Chair and Scot Legge (Bruce) served as Vice
Chair of the committee. Richard Horne (BFO
Manager of Policy and Issues) served as staff
representative.
The committee worked on and provided
feedback on a number of issues, including:
• Endorsed a proposal by the Industry
Stakeholder Working Group, a group
that includes the leadership of provincial
ministries of agriculture, Canfax,
Statistics Canada, and Agriculture and
Agri-Food Canada (AAFC) to enhance
fed cattle price reporting in Canada
• Reviewed and provided input on
2018 resolutions, particularly, Hot Iron
Branding, OTM Cattle, Age Verification
Process, and the Beef Cattle Marketing
Act
• Reviewed emergency slaughter
requirements and recommended further
investigation into ways to increase and
improve mobile emergency slaughter
services in Ontario
• Provided suggestions to OMAFRA on
the 2018 Ontario Feedlot Survey
• Discussed pending amendments
to CFIA’s livestock transportation
regulations and reviewed BFO’s
updated position and lobby efforts
around the issue
• Discussed CFIA/OMAFRA inspection
concerns to bring forward to the new
Industry-CFIA Working Group, a group
that includes representatives from other
livestock organizations, transporters,
veterinarians, the Ontario Independent
Meat Processors, and OMAFRA
• With financial support from the board,
the committee initiated a one-year trial
of a monthly Canfax East publication
to provide an enhanced market price
information and analysis report for the
Ontario beef sector, a report that has
been included in the BFO market report
once a month
In addition, Scott Cochrane and Steve Eby
represented the Feedlot Committee on
behalf of BFO at a meeting in late July with
OMAFRA, the Ontario Association of Bovine
Practitioners (OABP), and the College of
Veterinarians of Ontario (CVO) to discuss
producer concerns around the changes to
access to livestock medicines.
Finally, the committee expected to meet
jointly again in the fall with the Cow-Calf
Committee to provide feedback to the board
on the proposed check-off and marketing
plan for 2019. However, given the check-off
and marketing plan was not finalized until late
in the year, the joint committee meeting was
not held.
BFO ANNUAL REPORT 2019 I 25
The staff of the Ontario Feeder Finance Co-ops play a large role
in the success of the operation and governance of each co-op.
This spring, we will lose one of our original administrators, Mary
Stephenson. Mary championed the program from an administrative
standpoint, worked on the original bylaws, set the bar high on
protocols and bookkeeping standards for co-ops, and provided
advice to other administrators and provincial supervisors over
the years. Her successful Bruce Grey Bookkeeping Service has
serviced five feeder co-ops and two breeder co-ops in the past,
and currently provides service to three co-ops. Thank you to Mary
and her staff for over 28 years of dedication to the program.
From a political standpoint, the modifications being sought for the
program were at a standstill for most of 2018 due to the provincial
election. It was also determined that the Order in Council (OIC) with
its government guarantee was not considered a Minister’s Order
under the Burden Reduction Act passed in March of 2017. Currently,
there is proposed Bill 66, Restoring Ontario’s Competitiveness
Act, which had its first reading on December 6th. If Bill 66 receives
Royal assent and becomes law, this issue will be resolved. The OIC
would then be considered a Minister’s Order and therefore any
changes requested that do not impact the amount or structure of
the guarantee will not have to be passed by Cabinet.
The Ministry of Finance has launched a consultation process on
the Co-operative Corporations Act, which hasn’t been reviewed
in over 44 years. Under review are the audit requirements and
exemption levels. We have great appreciation for the Ontario Co-
operative Association that has lobbied on our behalf since 2010.
We are hopeful there will be some positive changes as a result of
this consultation process.
The Feeder Executive Committee, which consists of five
representatives from the 16 co-ops, has revamped the 25-year-
old Memorandum of Understanding between the co-ops and the
provincial committee. The executive also provided input on other
aspects affecting the program.
Activity within the program has been on par with 2017. We have a
few more active members and the percentage under the age of
40 has declined slightly. At year-end, our inventory is up, which
is due to the challenge members had getting cattle processed in
December. The total dollars committed to the program is down,
ONTARIO FEEDER CATTLE LOAN GUARANTEE PROGRAM
26 I BFO ANNUAL REPORT 2019
2018 2017 2016 2015 2014
Number of Co-ops 16 16 17 17 18 Total Membership 804 806 844 915 904 Active Members
During Year 757 730 794 838 821 As of December 31 622 652 765 726 Under Age 40 270 292 317 351 339 Number of Cattle
Purchased in Year 95,791 97,466 91,631 85,107 95,713
Sold in Year 94,744 95,056 86,872 85,821 96,144 On Hand, December 31 71,888 70,998 68,834 64,182 66,178 Financial
Outstanding Loans, December 31 $96.9M $98.3M $88.0M $113.0M $102.2M
Total Amount Committed, December 31 $105.1M $94.5M $120.0M $113.4M
Total Loans Advanced During Year $125.7M $136.3M $126.8M $155.9M $141.3M
which is largely due to decreased market prices during the fall and
overall decreased returns to members throughout the year.
For a listing of feeder finance co-op administrators, visit www.ontariobeef.com and search under “Programs”.
PROGRAM STATISTICS
BFO ANNUAL REPORT 2019 I 27
Eight Beef Breeder Co-ops from across the province have now
completed over 15 years of lending. Happy 15th anniversary to the
directors and staff who have worked so hard to keep the program
going and growing. As of June 30, 2018, there were new records
achieved for the number of active members and the number of
females financed.
The percentage of the membership under 40 years of age has
decreased from a high of 39 per cent to 28 per cent and this is
simply due to the fact that some of the original young members
have aged.
There are seven co-ops that lend between $750,000 and $1.25
million, each with about 40 to 50 members. There is also one larger
co-op with 100 members that lends about $5 million. The average
loan outstanding per member ranges from $19,000 in one co-op
to $50,000 in another. The average amount owing per active
member has peaked at $37,368.
Some long-term members and directors shared some tips on how
to best utilize the Ontario Beef Breeder Co-op program to build or
enhance a cow-calf operation:
DO
• Do remember you are going to lose a few calves and the odd
cow or two.
• Do make sure you know how you are going to make all of your
payments.
• Do have a good mentor to assist with buying cows if you don’t
have the experience.
DON’T
• Don’t buy someone else’s culls.
• Don’t finance 100 per cent of your cow herd.
• Don’t get too big too quick. Take baby steps, make a few
payments, then buy some more. Most people buy in the
summer and fall when it’s the easiest time of year to manage
cows, but when spring calving comes, it takes a whole different
level of management and space.
• Don’t buy expensive cows, but buy good ones.
ONTARIO BEEF BREEDER PROGRAM
28 I BFO ANNUAL REPORT 2019
Year as of June 30, 2018 2018 2017 2016 2015 2014 Number of members 396 382 346 334 298 Number of active members 359 350 317 308 259 Total cow inventory 10,019 9,387 9,069 7,950 7,874 Total principal outstanding (million) $13.4 $12.9 $12.9 $9.11 $6.83 Average number of females per active member 28 27 29 26 30
Number of new members in the first six months of year 29 26 36 33 35
Number of females purchased in the first six months 1,346 1,312 1,300 1,152 1,265
BRUCE-GREY BEEF COW FINANCE CO-OP
Theresa Cameron (Grey/Bruce)
519.881.9894
EAST BEEF BREEDER CO-OP
Contact currently not available (Victoria County to Leeds)
Contact Cheryl Russwurm, Program Supervisor - 519.367.5590
HURON-PERTH-MIDDLESEX BEEF BREEDERS CO-OP
Janice Hawkins-Wylie (Huron/Perth/Middlesex and east to 403)
519.887.8899
OTTAWA VALLEY BREEDER CO-OP
Jim Cochran (Carleton/Lanark/Renfrew)
613.256.3835
RAINY RIVER BEEF BREEDER CO-OP
Joyous Bragg (Rainy River, Thunder Bay, Dryden and Kenora)
807.482.3948/2498
SOUTH QUEENS BREEDER FINANCE CO-OP
Darryl Diemert (South Bruce, South Grey, North Huron, Wellington)
519.367.2077
SOUTHWEST BEEF BREEDERS CO-OP
Alex Gray (Lambton/Essex/Kent and east to Norwich area)
226.378.1731
TEMISKAMING/COCHRANE BEEF BREEDER CO-OP
Mike Rheaume (Northeastern Ontario and Manitoulin Island)
705.648.4536
BFO ANNUAL REPORT 2019 I 29
PROGRAM STATISTICS
30 I BFO ANNUAL REPORT 2019
MARKET STATISTICS
Four Convenient Ways to Access Market Information from the BFO Office
Website www.ontariobeef.com
Tapeline TF: 866.370.2333
Local: 519.824.0334Ext. 300 - Daily Report Ext. 301 - Noon Report
Fax519.824.9161
BFO ANNUAL REPORT 2019 I 31
150.00
160.00
170.00
180.00
190.00
200.00
210.00
220.00
Jan
Feb
Mar Ap
r
May Jun Jul
Aug
Sep
Oct
Nov De
c
Pric
e pe
r hun
dred
wei
ght
Replacement Steers 1000 lbs + Ontario Average Monthly Price
2016 2017 2018
Replacement Steers1,000 lb +
Ontario Average Monthly Price
Replacement Steers500-599 lb
Ontario Average Monthly Price
180.00
190.00
200.00
210.00
220.00
230.00
240.00
250.00
260.00
Jan
Feb
Mar Ap
r
May Jun Jul
Aug
Sep
Oct
Nov De
c
Pric
e pe
r hun
dred
wei
ght
Replacement Steers 500-599 lbs Ontario Average Monthly Price
2016 2017 2018
32 I BFO ANNUAL REPORT 2019
Replacement Steers1,000 lb +
Ontario Average Monthly Price
Replacement Steers500-599 lb
Ontario Average Monthly Price
2014 2015 2016 2017 2018Stockers 263,936 242,525 248,379 251,185 243,834
220,000
225,000
230,000
235,000
240,000
245,000
250,000
255,000
260,000
265,000
Num
ber o
f hea
d
Stocker Volume Sold Through Ontario Auction Markets
Stocker Volume SoldThrough Ontario Auction Markets
Replacement Steers Ontario Average Monthly Price
Per Hundred Weight Replacement Steers Ont Average Monthly Price per Hundred Weight
Over 1000 lb. 500 – 600 lb.
Month 2018 2017 2016 2018 2017 2016
January 178.49 174.51 214.83 215.05 188.89 257.40
February 178.90 169.68 198.35 223.80 186.32 256.12
March 167.54 165.44 184.97 218.68 198.59 233.34
April 158.42 162.14 164.42 207.01 206.40 209.33
May 157.14 172.18 168.55 210.51 222.33 214.78
June 157.97 172.24 164.10 213.80 228.60 213.94
July 161.46 164.29 163.51 212.20 215.61 202.65
August 173.70 166.44 161.06 213.37 201.90 187.54
September 182.32 170.91 163.02 221.07 215.06 197.04
October 185.44 185.39 160.34 219.50 228.34 190.19
November 177.19 194.20 160.31 203.88 234.22 185.18
December 180.71 190.97 174.53 209.92 223.26 191.65
BFO ANNUAL REPORT 2019 I 33
Ontario Auction Markets Large and Medium Frame Fed Steers 1250 lbs + Average Weekly Price Per Hundred Weight
Week # 2018 2017 2016 Week # 2018 2017 2016
1 149.27 141.59 173.04 27 138.69 153.37 150.33
2 147.18 146.21 171.43 28 143.17 155.11 152.61
3 134.36 141.77 172.25 29 138.66 151.79 147.73
4 136.55 148.72 172.20 30 140.69 145.25 146.24
5 141.66 144.45 170.57 31 140.93 145.61 148.98
6 144.74 144.44 170.59 32 139.12 145.35 147.59
7 146.24 147.15 167.89 33 138.72 140.85 140.80
8 149.36 146.66 165.77 34 133.07 136.06 138.39
9 147.57 146.46 167.37 35 133.02 128.90 133.43
10 149.14 150.18 168.67 36 133.29 125.13 126.52
11 151.20 158.31 165.97 37 133.96 124.53 126.32
12 147.94 157.53 163.78 38 136.76 123.93 129.09
13 146.19 159.90 162.42 39 133.87 124.70 125.71
14 143.78 155.80 157.67 40 138.35 130.52 123.93
15 139.21 153.28 150.49 41 134.72 131.73 126.89
16 141.79 159.35 149.03 42 139.13 131.64 123.67
17 142.54 163.05 148.38 43 134.97 134.20 123.47
18 147.05 167.85 147.69 44 127.81 134.07 123.79
19 152.00 177.11 148.34 45 133.46 139.99 124.42
20 143.72 173.83 158.12 46 131.83 139.08 126.90
21 143.23 170.62 158.27 47 132.13 136.62 128.92
22 141.98 172.35 157.42 48 126.99 135.87 131.13
23 143.93 179.00 155.44 49 130.99 137.54 134.84
24 146.97 174.59 151.98 50 134.90 135.64 132.45
25 146.43 166.11 147.67 51 134.59 138.98 128.36
26 141.45 161.93 147.72 52 131.23 138.54 139.19
Ontario Auction Markets Large and Medium Frame Fed Steers
1,250 lb +Ontario Average Weekly Price - Per Hundred Weight
Beef Cow VolumesOn Ontario Farms
34 I BFO ANNUAL REPORT 2019
Beef Cow VolumesOn Ontario Farms
220,000
245,000
270,000
295,000
320,000
345,000
370,000
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
Jan Jul
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tota
l num
ber o
f hea
d
Data from Statistics Canada 2018 Cattle Stats Released August 23, 2018
Beef Cows On Ontario Farms
Ontario Annual Processing Volumes Federal and Provincial Inspected Plants
2014 2015 2016 2017 2018Steers 400,923 384,330 407,347 419,877 425,482Heifers 160,348 136,840 138,326 136,700 136,553Cows 87,263 70,021 68,999 100,615 113,818
050,000
100,000150,000200,000250,000300,000350,000400,000450,000
Tota
l num
ber o
f hea
d
2018 totals are preliminary
Ontario Annual Processing Volumes Federal & Provincial Inspected Plants
BFO ANNUAL REPORT 2019 I 35
Ontario Railgrade SteersOntario Average Monthly Price
Ontario Railgrade SteersEstimated Monthly Breakeven vs. Monthly Average Price
36 I BFO ANNUAL REPORT 2019
210.00
220.00
230.00
240.00
250.00
260.00
270.00
280.00
290.00Ja
n
Feb
Mar Ap
r
May Jun Jul
Aug
Sep
Oct
Nov De
c
Pric
e pe
r hun
dred
wei
ght
Ontario Railgrade Steers Average Monthly Price
2016 2017 2018
205.00
225.00
245.00
265.00
285.00
305.00
325.00
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep-
17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep-
18
Nov
-18
Jan-
19
Mar
-19
May
-19
Pric
e pe
r hun
dred
wei
ght
Ontario Railgrade SteerEstimated Monthly Breakeven Vs Monthly Avgerage Price
Estimated Breakeven Price
Railgrade Steer Monthly Average Price
Ontario Railgrade SteersOntario Packing Plants
Ontario Average Weekly Price Per Hundred Weight Railgrade Steers
Ontario Packing Plants Average Weekly Price per Hundred Weight
Week #
2018 2017 2016 Week #
2018 2017 2016
1 256.50 249.25 290.00 27 249.00 261.25 251.00
2 256.00 251.00 291.00 28 249.00 257.50 257.25
3 253.50 251.00 289.25 29 248.00 254.50 253.75
4 252.00 251.00 291.75 30 248.00 252.50 244.00
5 250.75 251.00 293.00 31 246.75 249.00 249.25
6 248.50 250.50 290.75 32 239.00 247.50 250.00
7 248.50 250.50 286.00 33 230.00 234.50 246.00
8 253.00 250.75 285.50 34 230.00 N/T 237.25
9 255.00 251.00 285.25 35 230.00 N/T 225.75
10 255.00 257.50 285.00 36 229.75 N/T 215.75
11 255.00 259.00 283.50 37 229.00 208.75 204.00
12 256.00 264.00 283.50 38 231.00 209.00 214.00
13 254.50 271.25 282.75 39 236.50 214.00 217.25
14 245.50 270.25 N/T 40 238.00 221.75 209.50
15 244.00 269.25 271.75 41 240.00 227.00 214.00
16 244.00 269.50 268.00 42 244.00 228.75 211.00
17 244.00 274.25 258.50 43 244.50 225.50 213.00
18 250.75 283.25 251.50 44 245.00 231.25 214.75
19 254.00 297.00 249.00 45 244.25 237.75 214.75
20 253.25 298.00 251.75 46 244.00 242.00 215.00
21 248.00 297.00 259.50 47 244.00 238.75 218.00
22 246.00 297.00 263.75 48 244.00 237.50 226.00
23 246.00 297.00 267.00 49 244.00 240.00 230.75
24 246.00 297.00 265.50 50 244.50 239.00 233.25
25 248.00 281.00 252.75 51 245.00 240.75 233.00
26 249.00 269.75 250.50 52 N/T 250.25 242.25
BFO ANNUAL REPORT 2019 I 37
38 I BFO ANNUAL REPORT 2019
Ontario/Alberta Fed Steer Price SpreadDressed Basis
Ontario/U.S. Fed Steer Price SpreadDressed Basis
-$30.00
-$25.00
-$20.00
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
wk
1
wk
3
wk
5
wk
7
wk
9
wk
11
wk
13
wk
15
wk
17
wk
19
wk
21
wk
23
wk
25
wk
27
wk
29
wk
31
wk
33
wk
35
wk
37
wk
39
wk
41
wk
43
wk
45
wk
47
wk
49
wk
51
2018
per h
undr
ed p
ound
s
Data Source: Canfax/BFO
Ontario/Alberta Fed Steer Price Spread -Dressed Basis
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
wk
1w
k 3
wk
5w
k 7
wk
9w
k 11
wk
13w
k 15
wk
17w
k 19
wk
21w
k 23
wk
25w
k 27
wk
29w
k 31
wk
33w
k 35
wk
37w
k 39
wk
41w
k 43
wk
45w
k 47
wk
49w
k 51
2018
per h
undr
ed p
ound
s
Data Source: USDA/BFO
Ontario/U.S. Fed Steer Price Spread -Dressed Basis
Monthly Average Warm Carcass Weight Steers
Ontario Canada
Month 2018 2017 2016 2018 2017 2016 January 972 974 987 909 918 937
February 971 963 983 908 911 942
March 968 960 972 909 912 937
April 960 952 971 886 884 936
May 938 936 962 846 843 888
June 914 899 945 844 850 883
July 909 903 917 867 864 899
August 920 915 930 894 893 916
September 935 938 934 922 919 928
October 950 952 952 932 925 930
November 960 967 966 925 926 932
December 971 963 969 929 912 924
Data Source: Canfax/CBGA
Monthly Average Warm Carcass WeightHeifers
Monthly Average Warm Carcass Weight Heifers
Ontario Canada
Month 2018 2017 2016 2018 2017 2016 January 854 857 867 830 822 851
February 859 853 865 837 826 851
March 855 847 861 833 832 858
April 858 839 860 826 827 864
May 849 823 838 798 785 830
June 841 808 845 785 787 812
July 810 797 827 798 797 820
August 819 797 819 824 805 820
September 819 828 826 843 845 844
October 829 827 833 847 850 841
November 839 852 845 855 846 849
December 856 859 849 849 838 832
Data Source: Canfax/CBGA
Monthly Average Warm Carcass WeightSteers
BFO ANNUAL REPORT 2019 I 39
Canadian Boxed Beef Cut-Out Values
Weekly Average Price per Pound
Week #
2018 AAA
2018 AA
2017 AAA
2017 AA
Week #
2018 AAA
2018 AA
2017 AAA
2017 AA
1 2.5800 2.4906 2.5235 2.4730 27 2.8659 2.6299 2.8622 2.4437
2 2.5903 2.5152 2.4737 2.4566 28 2.7573 2.5902 2.7746 2.5574
3 2.5881 2.5183 2.4946 2.4307 29 2.7418 2.6002 2.6685 2.4800
4 2.5360 2.4992 2.5631 2.4948 30 2.7232 2.5944 2.5972 2.4196
5 2.5689 2.5092 2.5901 2.5329 31 2.6798 2.5517 2.5940 2.4798
6 2.5236 2.4969 2.5664 2.5103 32 2.6994 2.5814 2.5984 2.4615
7 2.5689 2.5594 2.6150 2.5303 33 2.6716 2.5678 2.5407 2.4310
8 2.5806 2.5516 2.6942 2.6103 34 2.6689 2.5916 2.5109 2.4046
9 2.6580 2.5943 2.7432 2.6669 35 2.6703 2.5745 2.4659 2.3545
10 2.6885 2.6349 2.7476 2.7172 36 2.6442 2.5319 2.4273 2.3685
11 2.7019 2.6694 2.7709 2.6827 37 2.6401 2.5369 2.4643 2.3308
12 2.7565 2.6990 2.7883 2.7534 38 2.6137 2.4973 2.3920 2.3260
13 2.7890 2.6791 2.8134 2.7292 39 2.6037 2.5392 2.4249 2.3363
14 2.7274 2.6619 2.7614 2.6557 40 2.6103 2.5866 2.4358 2.3509
15 2.6726 2.5968 2.8267 2.7110 41 2.6089 2.4469 2.4355 2.3297
16 2.6398 2.5711 2.7929 2.6821 42 2.5693 2.4701 2.4631 2.3278
17 2.6928 2.6300 N/A N/A 43 2.6230 2.4914 2.4686 2.3419
18 2.7145 2.6146 N/A N/A 44 2.6637 2.4965 2.4821 2.3871
19 2.7814 2.6829 2.9701 2.8698 45 2.6906 2.5617 2.4996 2.4334
20 2.8197 2.6467 3.1294 2.8470 46 2.6775 2.5621 2.4928 2.4064
21 2.8390 2.6571 3.1009 2.8391 47 2.7041 2.5723 2.5729 2.4466
22 2.8362 2.6243 3.1438 2.7972 48 2.7242 2.5672 2.6249 2.4458
23 2.8948 2.6533 3.1599 2.7792 49 2.7372 2.6104 N/A N/A
24 2.7864 2.5424 3.1272 2.7198 50 2.7779 2.6526 N/A N/A
25 2.8413 2.5963 3.0622 2.7053 51 2.7178 2.6586 N/A N/A
26 2.8151 2.5946 2.9995 2.6467 52 2.6193 2.4374 2.5738 2.4562 Data Source: Canfax/AAFC
Canadian Boxed Beef Cut-Out Values Weekly Average Price Per Pound
40 I BFO ANNUAL REPORT 2019
2.30
2.50
2.70
2.90
3.10
3.30w
k 1
wk
4
wk
7
wk
10
wk
13
wk
16
wk
19
wk
22
wk
25
wk
28
wk
31
wk
34
wk
37
wk
40
wk
43
wk
46
wk
49
wk
52
Aver
age
pric
e pe
r pou
nd
Data Source: Canfax & AAFC
Canadian Boxed Beef Cut-Out Values - AAA2016 2017 2018
Canadian Boxed Beef Cut-Out ValuesAAA
Canadian Boxed Beef Cut-Out ValuesAA
BFO ANNUAL REPORT 2019 I 41
2.20
2.40
2.60
2.80
3.00
3.20
wk
1
wk
4
wk
7
wk
10
wk
13
wk
16
wk
19
wk
22
wk
25
wk
28
wk
31
wk
34
wk
37
wk
40
wk
43
wk
46
wk
49
wk
52
Aver
age
pric
e pe
r pou
nd
Data Source: Canfax & AAFC
Canadian Boxed Beef Cut-Out Values - AA2016 2017 2018
CANADA Youthful Cattle Beef Grade Distribution 2018
Federally Inspected Plants Per cent
Quality Grade
Yield Group
Total
Y1 Y2 Y3 A Prime 0.14 0.58 1.71 2.43
AAA 14.80 24.05 23.29 62.14 AA 18.74 9.33 3.93 32.01 A 1.52 0.15 0.02 1.69
B1 0.12 B2 0.03 B3 0.21 B4 1.38
Total 35.20 34.12 28.95 100.00 No. head graded: 2,470,449
ONTARIO Youthful Cattle Beef Grade Distribution 2018
Federally Inspected Plants Per cent
Quality Grade
Yield Group
Total
Y1 Y2 Y3 A prime 0.23 0.76 2.02 3.01
AAA 17.62 24.51 19.06 61.19 AA 22.15 8.02 2.48 32.65 A 1.21 0.03 0.00 1.24
B1 0.00 B2 0.01 B3 0.30 B4 1.55
Total 41.21 33.31 23.56 100.00 No. head graded: 512,094 Note: Based on gradings in federally inspected plants.
Mature Cattle Distribution 2018 Federally Inspected Plants
Per cent Ontario Canada
D1 7.3 2.8 D2 60.8 64.2 D3 30.2 26.5 D4 1.6 2.9 E 0.1 3.6
Total head graded 75,482 467,166 Total head ungraded 29,132 73,492
Condemned 2,349 5,490 Data Source: CBGA/Graeme Hedley
Beef Grade Distribution 2018
Canadian Beef Imports and Exports
42 I BFO ANNUAL REPORT 2019
0100,000200,000300,000400,000500,000600,000700,000800,000900,000
1,000,0001,100,0001,200,000
2014 2015 2016 2017 2018
Num
ber o
f hea
d
Data Source: Agriculture and Agri Food Canada 2018 - Imports- Jan 1- Nov 30 2018 - Exports Jan 1- Dec 29
Canadian Live Cattle Imports and Exports
Imports into Canada Exports from Canada
Canadian Live Cattle Imports and Exports
Canadian Beef Imports and Exports
025,00050,00075,000
100,000125,000150,000175,000200,000225,000250,000275,000300,000325,000350,000375,000
2014 2015 2016 2017 2018
Tonn
es
Data Source: Agriculture & Agri Food Canada2018-Imports- Jan 1- Dec 29, 2018 2018-Exports Jan 1- Nov 30, 2018
Canadian BeefImports and Export
Total Beef Imports Beef Imports from US Beef Imports Non-Nafta Beef Exports
BFO ANNUAL REPORT 2019 I 43
44 I BFO ANNUAL REPORT 2019
AgSights
Beef Cattle Research Council
Canada Beef
Canadian Beef Check-off Agency
Canadian Cattlemen’s Association
Canadian Cattle Identification Agency
Farm & Food Care Ontario
Livestock Research Innovation Corporation
Ontario Cattle Feeders’ Association
Ontario Beef Cattle Financial Protection Fund
INDUSTRY IN REVIEW
BFO ANNUAL REPORT 2019 I 45
AGSIGHTSThe trend toward more data collection on farms is gathering steam.
While the crop sector is leading the way, largely because data
collection is done mostly by sensors, gathering data on beef cattle
is more labour intensive, so the payback needs to be even more
obvious.
For some beef farmers, gathering data to better manage their
business has been a normal day-to-day activity for years. Routine
decisions like culling, sire selection and heifer retention are all
made better when you have solid data at hand. Marketing a local
product or meeting the protocols of a particular brand requires
proof, more data.
For other farmers, the benefit is just now becoming obvious through
clear market signals. Beef farmers in Western Canada and in Atlantic
Canada can get more payment for their cattle if those cattle come
with documentation. Although Ontario has lagged in this regard,
expect that to change soon. The premium for sustainably produced
beef will come to Ontario and will help farmers who are willing
to put some effort into gaining certification through Verified Beef
Production Plus standards, and documenting that fact.
Those who really don’t want to gather data will soon find it is the
new standard of being in the industry. With new rules relating to
antimicrobial use on your farm, retailers requiring documentation
on how well you treat animals, and eventually recording full
traceability, you won’t have a choice.
One of the bigger decisions you will face is which company and/
or system you want to use in data gathering. AgSights has an easy
“Twenty Questions” form that will help you in making that decision,
simply contact our office at 1.855.246.2333.
46 I BFO ANNUAL REPORT 2019
Two key considerations are: how easily you can collect data and
how that data is handled. With ten years of experience working
with beef farmers just like you, AgSights has released version
two of the on-farm data system called Go360 bioTrack. Designed
by farmers for farmers, it provides options but more importantly,
it offers simplicity, choice and second-to-none support by people
who know beef farming. With regard to how your data is handled,
Go360 bioTrack is the only livestock management system that has
earned the Ag Data Transparent (ADT) seal.
Our bioLinks system, used by agri-food businesses and small
processors to track inventory and sales, remains a key element of
BFO’s Farm to City initiative with a focus on marketing your product
in your home area. We will be releasing the second version of this
system in 2019 with many new features based on client suggestions.
When you are ready to make data collection a part of your business
success, we are here for you.
BFO ANNUAL REPORT 2019 I 47
2018 has been a transition year for the Beef
Cattle Research Council (BCRC) in terms of
both funding and program administration.
An increase in the Canadian Beef Cattle
Check-off from $1 to $2.50 per head in most
provinces and revised allocations to research
has grown the BCRC’s research budget from
approximately 15 cents to approximately 75
cents per head. In addition, the Beef Science
Cluster II, under Agriculture and Agri-Food
Canada’s AgriInnovation Program, wrapped
up March 31, 2018 and the Beef Science
Cluster III program, under the Canadian
Agricultural Partnership (CAP), has begun.
Canada’s Beef Cattle Industry Science
Clusters
The Science Clusters are a partnership with
Agriculture and Agri-Food Canada (AAFC)
that combines their strengths with the BCRC’s
to make joint-investments in a variety of
research programs with the greatest potential
to advance the industry. Joint industry and
government commitments to the second
Cluster (2013–2018) totaled $20 million,
directed to 26 research projects.
Beef Science Cluster II Outcomes
Research supported through the Cluster is
developing solutions to issues of concern
to Canada’s beef industry, governments,
regulators, consumers and the public. Results
include:
• A factual understanding of the Canadian
beef industry’s environmental footprint.
In 2011, producing each kg of Canadian
beef required 29% less breeding stock,
27% fewer slaughter cattle and 24% less
land, used 17% less water, and produced
15% less greenhouse gases than in 1981.
• Optimal combinations of annual forage
crops, agronomic management and
grazing practices that improve forage
productivity while providing economical
and nutritionally appropriate winter feed
for the cow herd.
• Cost-effective, practical ways to manage
the pain associated with castration in
beef calves.
• An understanding of the occurrence
and severity of beef carcass defects
to inform prevention strategies. Total
losses due to carcass quality defects are
approximately $200 million/year. Some
defects, like bruises and horns, are
becoming less common while others,
like excess weight, fat, tag, liver health
and injection site lesions, require further
investigation of nutritional and health
management strategies to reduce
losses.
• New feed grain and forage varieties
with superior yield and quality,
including ten barley varieties approved
for registration, and several lines
of native plant materials, legumes,
grasses and triticale with potential for
commercialization.
• Dry chilling methods to cost-effectively
control microbiological growth on
carcasses in small abattoirs.
• The establishment of a veterinary
and producer surveillance network to
gather information on the prevalence
of production limiting diseases and
evaluate the adoption of and producer
attitudes toward various management
practices such as antimicrobial use,
animal welfare practices and biosecurity
practices.
• Detailed metagenomic analysis of
microbiological samples collected
throughout cattle environments, soils,
wetlands, rivers, municipal water, retail
beef, human patients and sewage
samples found no link between the
use of antimicrobials in beef cattle and
antimicrobial resistance in humans.
Beef Science Cluster III in Progress
Funding for the third Cluster was announced
by AAFC in July 2018. Covering the period to
March 31, 2023, $21 million will be directed
to 26 research projects. The funding includes
$14 million from AAFC, $5 million in funding
from the research allocation of the Canadian
Beef Cattle Check-Off, and $1.5 million in in-
kind contributions from industry in the form of
cattle, equipment and materials.
This Cluster will work to grow beef exports
BEEF CATTLE RESEARCH COUNCIL
48 I BFO ANNUAL REPORT 2019
and supply growing global beef demand
by supporting research and technology
transfer that advances Canadian beef and
forage production while enhancing industry
competitiveness and the public’s trust in
responsible production.
Examples of Cluster III project objectives
include:
• determine how camera-based,
computerized carcass grading systems
can optimize fabrication and direct beef
products to the most suitable market to
support market growth and trade;
• expand production-limiting disease
surveillance across Canada to
anticipate, mitigate and respond to
emerging disease threats;
• enhance environmental sustainability
and address climate change by
evaluating carbon sequestration and
biodiversity in Canada’s grasslands and
identify strategies to increase the beef
industry’s contribution;
• reinforce public trust and support
transport regulation development by
determining optimal rest intervals and
durations for cattle in transit
• support consumer confidence and
demand by improving understanding
of bacteria and cattle interactions to
improve food safety, reduce the risk of
E. coli O157:H7, and reduce the need for
antimicrobials to treat bovine respiratory
disease and digestive upsets; and
• strengthen awareness and adoption
of research results via the BCRC’s
innovative knowledge translation and
transfer team.
Details on all 26 Cluster III projects are
available on BeefResearch.ca.
Leveraging the Increased Canadian Beef
Cattle Check-Off
The increased Canadian Beef Cattle Check-
Off in many provinces enables the BCRC to
continue to play an integral role in achieving
several of the industry goals identified in
the National Beef Strategy by maintaining
existing programming and expanding in the
following ways:
Priority Research Projects: In addition to the
projects within the third Science Cluster,
research aimed at achieving specific goals
of high priority to the beef industry will be
sought. The council launched a targeted call
for letters of intent in June 2018. Funding
decisions will be made in February 2019. For
summaries, visit BeefResearch.ca.
Research Capacity: Research expertise in
Canada has declined to critical levels in
several areas, including those related to beef
production and forage breeding, agronomy
and utilization. The council launched a call
for proposals for Research Chairs in August
2018. An announcement will be made in 2019.
Knowledge and Technology Transfer: To
support the regionally limited, underfunded
and fragmented nature of beef extension
across Canada, the BCRC recently focused
on developing and utilizing a Canadian Beef
Technology Transfer Network. To develop
collaborative extension projects, including
economic-based decision-making tools
for producers, the council launched a call
for letters of intent in June 2018. Funding
decisions will be made in February 2019. For
summaries, visit BeefResearch.ca.
Advancement of the Verified Beef Production
Plus program: In addition to funding research,
the BCRC is responsible for the delivery of
the Verified Beef Production Plus (VBP+)
program, which verifies on-farm practices
related to food safety, animal care, biosecurity
and environment. Ongoing national industry
investment will ensure the consistent delivery
of the VBP+ program as it becomes a core
pillar in verifying sustainable beef production
in partnership with end-users.
To learn more about BCRC initiatives and
take advantage of our extension resources,
including articles, videos, webinars, and
calculators, visit their website at
www.beefresearch.ca.
BFO ANNUAL REPORT 2019 I 49
Canada Beef works together with Canadian
farmers, ranchers, industry champions and
brand partners to drive, enhance and sustain
loyalty to Canadian beef. Canada Beef is
harnessing the Canadian beef brand story
to build consumer and customer loyalty
for Canadian beef globally. These efforts
increase demand for Canadian beef and the
value producers receive for their cattle.
Domestic Market Development
Canada Beef invests domestically to ensure
Canadian beef remains a staple in Canadian
diets. Working with brand partners with
large volumes and influence such as Costco,
Loblaw, Federated Co-op, Tim Hortons,
Swiss Chalet, Montana’s, Subway and Sysco,
Canada Beef ensures these partners fully
understand and appreciate the Canadian
Beef brand in order to promote the value
and leverage the marketing power of the
brand. Recently, Walmart and Harvey’s, two
large national entities, made the decision
to advocate and promote 100% Canadian
Beef. Partnerships like these continue to be
a priority, focusing on Canadian Beef brand
message and alignment. To further leverage
its influence, Canada Beef has presence at
industry trade shows such as the Restaurants
Canada and Canadian Federation of
Independent Grocers.
Canada Beef’s social and digital spaces
engage and connect with consumers and
farmers to build brand loyalty. With over
54,000 followers and 3.2 million impressions,
Canada Beef continues to successfully
build relationships and drive demand. At
canadabeef.ca, consumers and farmers can
source recipes, beef cooking know-how,
media releases, beef campaigns and events
in both English and French. The Make it Beef
(MIB) monthly e-newsletter is deployed to
almost 40,000 subscribers covering topics
that are both culinary and brand-focused.
The Roundup App is a mobile beef buying
guide and cooking app, designed to help
consumers have better success with beef
when they cook at home. This resource is
offered in English, French and Spanish and
was adapted for the Chinese market. Canada
Beef’s social media space has grown to
include a variety of social media platforms,
each reaching target audiences in helpful,
informative and engaging ways. Join the
conversation by following and liking us on our
channels. #LoveCDNBeef #CDNBeef
Generic Beef Marketing
The Import Levy (collected on beef imports at
the equivalent rate of $1 per head) provides
funding for positive, generic (i.e. non-
branded) beef messaging to Canadians. With
price concerns, consumers’ diminishing food
skills, and health and wellness remaining an
important social license issue for the beef
industry, Canada Beef developed targeted
initiatives to positively influence consumer
preference for beef as a choice over other
proteins.
Activities in this area include: print and TV
advertising; video distribution to doctors’
offices nationally; Cineplex Odeon movie
theatre advertising; video ad placement
at national fitness locations; responding
to media inquiries and articles about beef
and health, including addressing concerns
about the proposed changes to Canada’s
Food Guide; and resource/key message
development on topics such as beef and
cancer, red meat and health, and beef and
iron. These initiatives resulted in over 52
million consumer impressions over the past
18 months. Visit ThinkBeef.ca for nutritional
and culinary resources.
Canadian Beef Centre of Excellence
The Canadian Beef Centre of Excellence
(CBCE) is a pivotal resource in Canada Beef’s
abilities to connect and collaborate with
clients in a meaningful way. Top-notch chefs,
butchers, home economists and industry
professionals use the Centre to develop
technical and training resources, working
CANADA BEEF
50 I BFO ANNUAL REPORT 2019
directly with industry partners. In its first three
years of operation, the Centre has: hosted over
480 domestic and international companies in
business development programming; hosted
142 domestic and international missions;
featured four media/influencer events for
Canada’s 150th celebrations, including TV
broadcasts from the Centre with outreach
estimated at 4.8 million consumers; and
helped generate over $480 million in new
Canadian beef business.
Export Market Development
Canada Beef’s work in export markets such
as Mexico/Caribbean/Central America,
Japan, China/Hong Kong, South Korea,
Taiwan, Vietnam, Philippines, Singapore,
the Middle East and the European Union
is creating opportunities for the Canadian
beef industry to realize greater value for the
carcass than what could be realized in the
domestic market alone. Besides offering
competitive bids on middle meats, the export
markets can deliver better returns for end
meats, credit/thin meats and offal than here
at home, contributing well over $600 per
head in additional carcass value.
The Latin American market hub supported
various marketing and promotional programs
as well as social media marketing in
collaboration with leading export partners
and retail and foodservice distributors in
Mexico and Latin America. With successful
programs such as the Canadian Beef
Culinary Series, promotions featuring high-
profile celebrity chefs, business development
outreach through trade shows and trade
missions, and cooperative programs with
Canadian Embassies, Consulates and Trade
Commissioners, Canada Beef is creating
brand awareness and positioning our high-
end product in the minds of consumers and
key influencers.
Asian market hubs successfully utilized the
Canadian Beef branding series to drive
education, understanding and loyalty to the
Canadian Beef brand. They also continue to
position the Canadian Beef brand through
a series of educational cooking classes
and professional chef seminars; integrated
marketing programs linking online and live
events; culinary seminars and competitions
building a Canadian Beef community in the
social media platforms and brand media
campaigns; and cooperative programs
with Canadian Embassies, Consulates
and Trade Commissioners. The marketing
initiatives successfully brought the Canadian
Beef advantage to end users as a real-life
experience through cutting, cooking and
tasting demonstrations, which provided
an emotional connection to the brand and
created ongoing conversations between end
users.
Impact of Check-off Investment and Import
Levy Investment
A study evaluating the economic benefits
from the Canadian Beef Cattle Check-off
was completed in 2016, which indicated
that every dollar of check-off investment
into domestic and international promotion,
market development and research brought
back a benefit of $14 per head to producers –
a benefit cost ratio (BCR) of 14:1. In 2018, the
study was updated and showed that the BCR
had increased by 29% to 18:1. The updated
study also looked at the benefit to the
industry of the Import Levy – a $1 per head
equivalent levy collected on beef imports into
Canada used for domestic marketing. The
updated study showed the combined BCR
from the check-off and import levy is 25:1 or a
$25 benefit for the beef industry.
BFO ANNUAL REPORT 2019 I 51
The Canadian Beef Check-Off Agency (the
Agency) manages and administers the
Canadian Beef Cattle Check-Off, which
is collected on each head of cattle sold
in Canada. The provincial check-off also
collected on each head, is earmarked for
provincially-focused advocacy, policy, trade,
research, market development and promotion
initiatives, while the Canadian Beef Cattle
Check-Off is invested into national research,
market development and promotion activities
on behalf of all Canadian beef producers.
By working with service providers, the Agency
ensures national check-off dollars are invested
into research, market development and
promotion programs that deliver measurable
value to the Canadian beef industry. We are
responsible for governance, communicating
the value of the check-off investment, as well
as training and education of producers and
funding partners, regulatory management,
and collection and administration of check-off
dollars.
The Agency’s last fiscal year ended March 31,
2018 with the Canadian Beef Cattle Check-
Off revenue totalling $7,701,203 on cattle
marketed. This income was received at $1.00
per marketed head in most provinces, except
Nova Scotia, New Brunswick and Prince
Edward Island, who collected $2.50 per head
for at least part of the 2017/18 fiscal year. Of
the total revenue, $905,224 was collected
from Ontario, with $431,060 being allocated
back to the Beef Farmers of Ontario for
provincial investments.
Since then, British Columbia, Alberta,
Saskatchewan, Manitoba and Quebec have
also moved forward with a national check-
off increase to $2.50, and the Agency
continues to work closely with the provincial
organizations to facilitate the increase from a
grassroots level.
Of the total check-off funds collected from
cattle marketings in the last fiscal year, 64 per
cent was allocated to market development
and promotion, 18 per cent to research and
17 per cent was retained by the provincial
cattle organizations for regional marketing
and research programs. Issues management,
recently renamed Public and Stakeholder
Engagement, continued as a pilot program
last year under the Agency, for a total of
$95,239.
The import levy on beef and beef products
imported into Canada was also collected at a
rate of $1.00 per head equivalent, for a total
of $947,730. These funds, net administration,
are allocated to Canada Beef for the sole
purpose of generic beef marketing such as
nutrition marketing, recipe development and
culinary skills education. The import levy
remains at $1.00, until national treatment of
an increased check-off is attained.
A 2018 report showed that on average from
2014/15 to 2016/17, every dollar invested
from the import levy resulted in a benefit
cost ratio (BCR) of 6.42:1 or a $6 of benefit.
In addition, domestic generic beef marketing
activities funded by the import levy are
currently providing a higher BCR than the
average marketing and research activities.
The average BCR for the import levy grew
from 2.34 in 2014/15 to 9.92 in 2016/17. This
implies that despite positive benefits, under-
investment continues for the industry.
Last year $600,611 was retained for the
administration of the check-off, the Agency and
the Board of Directors. The Agency continued
its focus on transparent administration of
the check-off, communication and updating
the agreements with our provincial cattle
association partners. Collection and
service agreements were updated with all
provinces, which modernized language of
the agreements to better align with each
organization’s current structure.
CANADIAN BEEF CHECK-OFF AGENCY
52 I BFO ANNUAL REPORT 2019
A focus on maintaining transparent and
separate finances from Canada Beef was also
a strong priority, with the Agency beginning
to move towards completely independent
finances and accounts to conduct all levy and
administration transactions through.
We spent much of the year continuing to
develop and refine a strengthened set of
by-laws, which encourage a structure more
aligned with the needs of the provincial cattle
associations. The amendments have been
driven by a desire for a more transparent
separation of governance of the Agency’s
administration and marketing programs.
With the amended by-laws enabling a more
robust Marketing Committee to oversee the
strategies, business plans and operations of
Canada Beef, the Agency continues to move
toward the distinct governance the funders
have been seeking.
It was through the provincial funders that we
were able to reach out across the country to
ensure each province was getting the support
and dedication to check-off administration that
was needed. The Agency had the privilege to
be invited to four provincial annual meetings,
six Check-Off Town Hall meetings, and to
speak to over 600 producers and industry
stakeholders regarding the investment of
Canada’s national check-off.
The Agency recently launched our first
stand-alone website at cdnbeefcheckoff.
ca. The website facilitates communication
between producers, provincial and national
partners and the Agency, and aims not only
to answer some of the most frequent check-
off questions, but ensure that stakeholders
have a place to access frequently updated
information regularly on how check-off is
being invested.
Many producers will still have questions
about the recent Canadian Beef Cattle
Check-Off increase that took place in most
provinces, as well as funding allocations,
return on investment, and how the check-off
is administered.
First and foremost, we encourage you to
talk to your provincial cattle association, or
your provincial association representative
to the Agency, about how your province
collects and remits the check-off, and how
your province plans to allocate the check-
off between research, market development
and promotion, and public and stakeholder
engagement.
We also encourage you to visit
cdnbeefcheckoff.ca regularly for the latest
check-off stories, and to sign up for our
monthly newsletter, The Gatepost. Through
these channels, our social media presence
@cdnbeefcheckoff and through our provincial
and national partners, the Agency will
continue to provide measurement and report
on progress so the return on investment for
the Canadian Beef Cattle Check-Off will be
clear to producers across Canada.
BFO ANNUAL REPORT 2019 I 53
The events of 2018 have created
unprecedented global opportunities for
producers as we head into 2019. CCA’s
continued focus on trade and market access
priorities once again bore fruit in 2018 and set
the stage for a sustainable future for Canadian
beef production. The Comprehensive and
Progressive Agreement for Trans-Pacific
Partnership (CPTPP) came into effect on
December 30, 2018. Canada signed the
Canada-U.S.-Mexico Agreement (CUSMA) on
November 30. Once ratified via the legislative
processes of the three countries, CUSMA will
update, modernize and replace the North
American Free Trade Agreement (NAFTA).
Despite some hoops, Canadian beef exports
to the European Union (EU) continued to
grow in volume and value as the reciprocal
two-way trade envisioned under the Canada
– EU Comprehensive and Economic Trade
Agreement (CETA) began to take shape.
The CCA was a leading voice for swift
ratification of the CPTPP, working with
industry partners to deliver that message
to Parliament Hill. CCA returned to Japan in
early December to promote Canadian beef.
We know importers want a consistent supply
of Canadian beef and expect that under the
CPTPP, Canadian beef exports to Japan could
double in 2019, up from the $160 million of
beef exported to Japan in 2017 under the old
tariffs.
CUSMA importantly preserves duty-free
trade in live cattle and beef, and leaves key
dispute settlement provisions intact; the
agreement excludes any reference to country
of origin labelling for meat or livestock. There
is ongoing commitment to address regulatory
matters affecting cattle and beef trade and to
continuously improve the competitiveness of
the North American beef sector, all outcomes
the CCA advocated for. As I wrote this report,
CUSMA was still anticipated to come into
force within the expected timelines despite
the partial U.S. government shutdown, which
was in its third week. CCA continues to
monitor the situation. In January 2019, CCA
attended meetings in the U.S. to discuss the
value of trade and areas for further regulatory
cooperation within the North American
market with key U.S. industry allies and
partners.
The new $1.1 billion Export Diversification
Strategy announced in the 2018 Fall Economic
Statement to maximize opportunities
for exporters in new markets includes a
commitment of $25 million over the next
five years to enhancing federal capacity to
address non-tariff and other trade barriers
specific to agri-food. This is excellent news
as such barriers often prevent exporters from
taking advantage of new export opportunities.
The beef industry is in a perpetual state of
forward motion and the CCA is working hard
to ensure conversations around sustainable
beef production and the healthfulness of beef
are top of mind with key officials. The CCA
was in Poland for the 24th Conference of
the Parties to the United Nations Framework
Convention on Climate Change (COP24).
Our industry continually strives to partner
in dually achieving Canada’s economic and
environmental targets. Attending, observing
and sharing the Canadian perspective on
sustainable agriculture for the future at COP
24 is a big piece of that.
Canada’s leadership in this area along with
the nutritional benefits of beef to human
health were the main themes of a meeting
CCA had with Minister of Health Ginette
Petitpas Taylor in Ottawa. We shared our
perspective about the Food Guide and Front
of Package labelling with the Minister, letting
her know that red meat is an important part of
a healthy and balanced diet, and of the need
for Canadian health and nutritional policy to
be based on sound and consistent scientific
evidence.
The CCA remains in close contact with the
Canadian Food Inspection Agency (CFIA) as
they investigate a case of bovine tuberculosis
(bTB) in a cow from British Columbia. Although
Canada enjoys bTB-free status, isolated
cases do occur. The case, detected in late
October, shows Canada’s surveillance system
is working. The CFIA recognizes the serious
impact of bTB on producers and the cattle
industry and is working with the producers
and provinces to take immediate action to
control the disease and maintain Canada’s
CANADIAN CATTLEMEN’S ASSOCIATION
54 I BFO ANNUAL REPORT 2019
bTB-free status. The CCA is communicating
with CFIA on a regular basis and will update
members of any developments impacting
Canada’s trade status.
Key efforts on regulatory matters include
asking the Senate to remove a last-minute
addition of a greatly expanded definition of
fish habitat in the Fisheries Act that will make
it nearly impossible for beef and agricultural
producers to be in compliance with the Act,
as part of the suite of recommendations
regarding Bill C-68. The CCA ensured cattle
producers’ concerns and recommendations
on Bill C-68 were raised with lawmakers
in Ottawa during the Fall Session. C-68
was later moved to committee for study in
February 2019. CCA staff will continue to
engage Senators, MPs and government staff
on this matter.
The CCA submitted comments to Health
Canada’s Pest Management Regulatory
Agency (PMRA) regarding its decision to
remove the registration of Liquid Strychnine
use for the control of Richardson ground
squirrels. The CCA is asking for continuation
of the registered use of the pest management
control product until an effective alternative is
in place.
The proposed changes to Transportation of
Animals regulations reduce the maximum
time mature and fed cattle will be allowed
to be in transit without feed and water to 36
hours from 52 hours, and to 12 hours from 18
hours for ruminants too young to be fed hay
or grain. Changes to some definitions, rest
stop duration and transfer of responsibility
requirements have also been proposed.
Recent dialogue with the CFIA suggests the
regulations may be published in Canada
Gazette Part II in spring 2019.
CCA’s position is that any regulatory change
needs to be based on scientific evidence
conducted under Canadian conditions and
wherever possible, use outcome-based
guidelines that focus on the animal. Research
conducted by Agriculture and Agri-Food
Canada has found that 99.95 per cent of
cattle on long hauls over four hours and
99.98 per cent of cattle on short hauls less
than four hours reach their destination in
good condition. We want to ensure that any
amended regulations do not inadvertently
move this number farther away from 100 per
cent.
On traceability, the CFIA revised the
anticipated date for the publication of draft
regulations pertaining to livestock traceability
in Part I of the Canada Gazette to spring
2019 from fall 2018. The CCA will continue
to work with CFIA to clarify definitions that
may appear in the regulatory text and ensure
that movement reporting upholds industry
traceability principles and reflects the Cattle
Implementation Plan.
Work continues to address workforce
shortages and other longer-term issues
affecting competitiveness.
The Canadian Agriculture Partnership (CAP)
is a five-year, $3 billion-dollar investment
designed to bolster competitiveness, growth
and innovation in the Canadian agriculture
and agri-food sector. In addition to some
changes to Business Risk Management
(BRM) programming, Federal, Provincial
and Territorial Agriculture Ministers have
undertaken a comprehensive review of BRM
programming to investigate the types of risks
producers face, and assess the effectiveness
that BRM programming has on growth and
innovation in the industry. CCA continues to
explore these issues and has identified key
areas it intends to advance while engaging
in the BRM review in the upcoming year,
such as improvements to forage insurance,
AgriStability and expanding the availability of
price insurance beyond Western Canada.
The CCA underwent some changes as well,
with Les Producteurs de bovins du Québec
becoming a provincial member in 2018. We
look forward to their working alongside all
our provincial association members in our
efforts to represent Canada’s beef industry.
BFO ANNUAL REPORT 2019 I 55
David Haywood-FarmerCCA President
CANADIAN CATTLE IDENTIFICATION AGENCY
2018 CCIA Board of Directors
The Board of Directors welcomed several new directors in 2018.
The leadership positions remained unchanged with Mark Elford
(Saskatchewan Stock Growers) as Chair and Pat Hayes (Canadian
Cattlemen) as Vice-Chair, but the Executive Committee now
includes Lyle Miller (Alberta Feeders’ Association) and Howard
Bekkering (Alberta Beef Producers) while Doug Sawyer (Canadian
Cattlemen) returned for a third year.
The CCIA Board welcomes new representation from:
• Canadian Veterinary Medical Association; Dr. Oliver Schunicht
• Canadian Meat Council; Kim O’Neil (also represented by
returning director Dan Gillis)
• Livestock Markets Association of Canada; Ken Perlich
• Canadian Sheep Federation; Corlena Patterson
• Canadian Bison Association; Bruce Downey
• Dairy Farmers of Canada; Gert Schrijver
• Beef Farmers of Ontario; Kim Sytsma
• British Columbia Cattlemen’s Association; Duncan Barnett
• Les Producteurs de bovins du Québec; Sylvain Bourque
Returning directors include:
Reg Schellenberg (Canadian Cattlemen)
James MacLean (Canadian Livestock Dealers Association)
Larry Gerelus (Manitoba Beef Producers)
Ivan Johnson (Maritime Beef Council)
Strategic plan, data centre hardware and department
restructuring update
In September, the CCIA Board revamped the strategic plan created
in 2015, to better reflect the current situation and prepare for the
future of CCIA as one of three responsible administrators in Canada.
With Canadian Agri-Traceability Services (CATS) winding down,
their assets were divided up between CCIA and Agri-Traçabilité
Québec (ATQ), the responsible administrator in Quebec. Data
centre hardware was received in August and installed to add to
the already existing Canadian Livestock Tracking System (CLTS)
equipment.
CCIA’s Communications department was restructured mid-year for
56 I BFO ANNUAL REPORT 2019
a greater outreach. Under Patt Evans’ coordination, the team now
includes a Business Content Writer; Tanner Holthe, and three field
staff; Jenn Taplin, Jody Scheirlinck and Lisa Pawlick. The department
continues to be supported by Zonita Salazar who has been in her
administrative role since 2015. The Communications Team proudly
launched the new refreshed CCIA website in September, alongside
a much stronger social media presence and a new approach to
print advertising.
CCIA on the road
Several Canadian livestock events included CCIA as speakers,
workshop instructors or within tradeshow settings. We always
embrace the opportunity to inform regulated parties on how to
prepare for proposed regulatory amendments, how to use the CLTS
and best traceability practices. Our American neighbours also turned
to CCIA’s experience to learn more about the implementation of
an animal identification program and the mandate of a responsible
administrator in Canada. Lastly, our General Manager, Anne Brunet-
Burgess was honored to speak at the Technical Beef Symposium
in Beijing, China as well as the Cross-Border Livestock Health
committee during the Pacific Northwest Economic Region Summit.
Tag Retention Phase II and intense lab testing
The Tag Retention II followed up on the successful national field trial
that was concluded in 2016. While the trial results were generally
good with regard to retention and readability of the devices,
complaints continued to be received by CCIA about poor retention,
particularly with regard to deterioration of the male stud portion of
the tag. Phase II investigated the premature failure of the plastic
in the male back using accelerated aging of the plastic. Testing
was conducted at a certified material testing laboratory. Samples
from each brand were subjected to 2,500 hours of UV light in an
environmental chamber. At prescribed intervals, samples were
removed from the chamber and the strength of the tag was tested
using a tensile strength apparatus. At the conclusion of the testing,
UV was ruled out as a factor in the premature aging and material
failure of the male backs. Further testing is required, moving the
project into Phase III.
Tag web store importance to CCIA’s operations
CCIA’s operations and supplementary activities such as Research
and Development projects are funded through the sales of animal
indicators (tags). Sales achieved directly from the webstore generate
a more favorable margin, while allowing for retail price equality
across the country, improved data integrity and the accessibility to
all five brands. To date, direct-to-producers tag sales represent five
per cent of the total sales in spite of aggressive print advertising
BFO ANNUAL REPORT 2019 I 57
in most cattle publications over the last two
years. In the last quarter of 2018, CCIA took a
different approach to promote the webstore
by launching a digital campaign directing
cyber traffic to the store landing page.
Preparing and anticipating client needs in
advance of regulation changes
In July, the Canadian Food Inspection Agency
(CFIA) announced that the anticipated
date for the publication of draft regulations
pertaining to livestock traceability in Part I
of the Canada Gazette had been revised
from fall 2018 to spring 2019. However, the
preparation measures did not slow down at
CCIA. We continued urging regulated parties
to obtain a Premises Identification (PID) from
their respective provincial government and
to follow with the additional step of updating
their CLTS account to include their PID
number. Aside from the many CLTS database
enhancements and CLTS MOBO — the
mobile phone application used to capture
regulated data in a user-friendly, species
specific fashion— CCIA’s preparedness also
comprised Client Support Services. These
services are currently delivered by six agents,
half of them fluent in French. The department
has been reviewed for service quality, staff
performance, phone system and procedures.
The audit report also suggested ways to
efficiently expand the services when the
need arises.
Livestock organizations partnership status
CCIA reinforced its long-standing relationships
with both the Canadian Bison Association
and the Canadian Sheep Federation with the
signing of updated long-term agreements
for both bison and sheep. CCIA has been
selected as the Responsible Administrator
for cervids and goats, and agreements have
been signed with Canadian National Goat
Federation and Canadian Cervid Alliance in
anticipation of new regulations coming into
effect. CCIA has also spent considerable time
transforming its existing relationship with the
Canadian dairy sector as the sector’s proposal
to have the Canadian Dairy Network become
the responsible administrator and database
service provider. Numerous discussions
took place over 2018 to define a statement
of work for dairy producers’ regulatory and
voluntary data to be transferred from the
Canadian Livestock Tracking System to
a new dairy database named DairyTrace,
once complete. The on-going flow of both
beef and dairy livestock data captured at
intermediate or terminal sites is under review
with the common goal of reporting in the
least disruptive manner for regulated parties.
CANADIAN CATTLE IDENTIFICATION AGENCYCONTINUED
58 I BFO ANNUAL REPORT 2019
BFO ANNUAL REPORT 2019 I 59
As a Platinum Member of Farm & Food Care
Ontario (FFCO), Beef Farmers of Ontario
plays an integral role in the organization’s
success and has done so since the inception
of the Ontario Farm Animal Council (FFCO’s
predecessor organization) 30 years ago.
Many initiatives over the last year have
benefitted Ontario’s beef farmers directly.
Communications and Outreach
The Real Dirt on Farming 2018
Following the release of the fourth edition of
The Real Dirt on Farming late in 2017, several
distribution goals for the publication were
met in 2018. The 12-page digest was inserted
in the Globe and Mail, reaching 200,000
households across the country. Copies
were also mailed to elected officials across
Canada and Canadian Registered Dietitians.
Four million copies of the booklet have now
been distributed to Canadians since the
publication’s inception in 2006.
Breakfast on the Farm
2,200 guests and more than 100 volunteers
attended Breakfast on the Farm September
8 at the North Gower beef feedlot and grain
elevator owned by Dwight and Ruth Ann
Foster and their family. This is the biggest
event FFCO has ever hosted in Eastern
Ontario. Special appreciation goes to the
many beef farmers in eastern Ontario who
volunteered for that day, helping to answer
questions about the feedlot cattle.
Union Station
In celebration of the twentieth annual Ontario
Agriculture Week, October 1-7, FFCO brought
together a dozen Ontario commodity groups,
including Beef Farmers of Ontario, to bring
the farm to Union Station. This Toronto
transportation hub sees 300,000 visitors
daily, and that’s where 40 volunteers and
farmers held a pop-up event to talk food and
farming, answer consumer questions, and
most importantly, thank them for buying local.
In the morning, breakfast sandwiches were
passed out to early morning commuters,
and in the afternoon a second group passed
out all-Ontario snacks, including beef
pepperettes, for the trip home.
Registered Dietitian Farm Tours
Partnering with Canada Beef and Beef
Farmers of Ontario, FFCO hosted two tours
for 61 Registered Dietitians (RDs) in the
autumn of 2018. In September, Registered
Dietitians from SickKids, Toronto Public
Health and other Toronto locations visited
the beef feedlot of the Schaus Land & Cattle
Company near Alliston. In October, a tour
for RDs working in Loblaw stores visited
Gilbrea Farms near Hillsburgh. Guests were
toured through the seed stock cow-calf
farm by farmers Bob and Kate Wilson. In an
evaluation, over 95 per cent of participants
found the tours very valuable. Participants
also expressed that opportunities like the
farm tour program assists them in their
careers by better preparing them to answer
questions from clients about food or farming.
Animal Care Initiatives
Animal Care Helpline
FFCO’s Animal Care Helpline fielded 26 calls
in 2018. In cases where the caller was less
familiar with animal agriculture, they often
felt reassured about the situation in question
once they were informed about normal farm
practices. Many of the callers are from within
the farm community and are concerned about
potential situations they see. In March, Farm &
Food Care Ontario assisted Beef Farmers of
Ontario with a training session for its Animal
Care Volunteer Team who are tasked with
following up on animal care concerns. Where
situations stem from unforeseen personal
or financial circumstances, assistance from
within the agricultural community can be
most effective.
FARM & FOOD CARE ONTARIO
60 I BFO ANNUAL REPORT 2019
Livestock Emergency Projects
FFCO continued to be active on livestock
emergency projects in 2018. In January, the
Truck Rollover Guide, developed alongside
Beef Farmers of Ontario in 2017, was sent to
450 fire departments across Ontario.
In September, FCCO received notice that a
Livestock Emergency Preparedness project
had received funding for 2019 from the
Canadian Agricultural Partnership through
the Agricultural Adaptation Council. This
new project will be a continuation of efforts
to promote barn fire education and truck roll
over training into 2019.
As part of barn fire awareness work, Farm &
Food Care Ontario continues the FLIR (heat
sensing) equipment lending program. The
FLIR sensor can often detect heat corrosion
in receptacles, plugs and panels in livestock
barns, which are some of the major causes of
barn fires. By using the FLIR modules, farmers
can check for potential risks on their own
farms. FLIR modules can be borrowed from
the Farm & Food Care Ontario office.
Farm Environmental and Farm Animal Care
Councils
In 2018, three council meetings, comprised of
FFCO’s Platinum, Gold and Silver members
were held utilizing a new hybrid meeting
template. The Farm Animal Care council is
chaired by BFO’s Dave Cavanagh. Councils
meet collectively in the morning for speakers
of common interest and then divide to take a
closer look into more special interest topics
for each council. The meeting format has
been well-received and will be continued
into 2019. Topics covered during the three
meetings included speakers on: glyphosate
on trial in California court and the court of
public opinion, pending impacts of changes
to antimicrobial legislation, the challenges
of crop protection products re-registration
at PMRA, and updates from the Ag. Sector
Working Group on the ongoing farm fires
issue.
These meetings are becoming a key venue
in Ontario agriculture to bring together
stakeholders from across our diverse industry
to discuss issues of relevance to everyone
and help shape the work that FFCO is doing in
the areas of farm environmental sustainability
and farm animal care.
Environment Initiatives
Timing Matters Working Group
FFCO is active in the Timing Matters
Working Group, which is a coalition of farm
organizations that promotes better manure
application stewardship. The Peer-to-Peer
Network is a subgroup that focuses on
responsible manure management in the
winter months. The team’s mandate is to help
identify practical alternatives to spreading
manure on frozen or snow-covered ground
in an effort to use nutrients more effectively
and reduce the environmental risks to local
creeks, rivers and lakes.
More information on all Farm & Food
Care Ontario activities can be found at
FarmFoodCareON.org To keep current
on Farm & Food Care Ontario initiatives,
subscribe to the monthly e-newsletter by
emailing [email protected].
BFO ANNUAL REPORT 2019 I 61
2018 was a busy year for the Livestock
Research Innovation Corporation (LRIC).
Unlike so many of our peer groups, we were
awarded another contract with OMAFRA to
continue our work with industry that they, and
we hope all sectors, find interesting, useful
and good value for money.
This year, Jack Chaffe joined the LRIC Board
on behalf of BFO and was later replaced by
Richard Horne. We appreciate their work on
behalf of LRIC, the knowledge they brought
to the table and their significant contribution
of time. The appointment of Richard broke
the mold at LRIC as this was the first time
a founding member has appointed a staff
member to represent them. We see this
as a great step forward as it connects LRIC
more closely with the organization at a senior
operational level. In this case, it also allows
us to be well connected to the board so
we can stay up-to-date on your issues and
report back on progress we are making more
effectively.
This year, our CEO, Tim Nelson, made a
couple of presentations to the BFO Board
outlining our achievements on your behalf
and how we use the linkage with government
to ensure your research needs remain front
and centre with the right people at OMAFRA
and AAFC, who provide 60 per cent of the
funds we receive from OMAFRA and, at a
very senior research and faculty level, at the
University of Guelph (UoG).
At the start of the year, LRIC collected BFO’s
research priorities and brought them into
the OMAFRA process to ensure your needs
are being addressed through their calls for
proposals, held in September. We also use
your priorities to help us set the agenda for
much of our beef-related activity during the
year, and this is particularly true of the way in
which we address emerging issues. As you
go through the report, you will see reflected
some of your priorities in our activities.
Some of the more significant ones were:
alternatives to antibiotics, reducing the use
of antimicrobials, better understanding of
alternative proteins and consumer attitudes
towards them, improving public confidence
in beef, reducing production costs, and
enhancing productivity through forages.
One of LRIC’s roles is to look for emerging
issues that might hurt or benefit the Ontario
protein sectors and provide up-to-date
information on their development. One issue
of particular interest to BFO has been our
enduring interest in the rise of alternative
proteins, something we first reported on in
March 2015. In March 2018, LRIC, with the
help of the Arrell Food Institute, ran a very
successful and informative day on alternative
proteins with speakers from around the world,
including Ms. Sonya Roberts from Cargill, Dr.
Robin White from MIT and Dr. Matti Wilks from
the University of Queensland Australia, each
of whom brought a different perspective to
the meeting. All talks are available on our
website. We are also pleased to note that
following our meeting, both Ms. Roberts and
Dr. White have been invited back to Ontario
to speak on this important topic. There are
no simple solutions to the seemingly endless
press onslaught against the animal protein
industries and in particular, beef. With that
in mind, our annual meeting targeted the
need for Ontario to develop farming systems
research that incorporates grazing livestock.
For some time now, LRIC has been promoting
this within OMAFRA and UoG, and we are
pleased to report there is movement on this
front. The Dean of OAC, Dr. Rene van Acker,
is a keen advocate for this work and made
this very clear during his address to the LRIC
Annual meeting in June. LRIC continues to
work for a replacement forage specialist
at UoG who will bring a strong balance of
agronomic and ruminant nutrition knowledge
to OAC.
LIVESTOCK RESEARCH INNOVATION CORPORATION
62 I BFO ANNUAL REPORT 2019
Our final workshop of the year was also of
interest to beef producers, looking at how
we can manipulate the microbiome flora to
more effectively produce a more efficient
digestive process and help support the
immune system – particularly important in
this period of reducing antibiotic use. On
that note, LRIC has been invited to sit on
an expert panel to review a network meta-
analyses that considered the efficacy of viral
and bacterial vaccines used to reduce bovine
respiratory disease (BRD) and subsequent
antibiotic use in feedlot cattle, and the
efficacy of metaphylaxis using antibiotics for
the prevention of bovine respiratory disease
(BRD) in cattle.
During the year, we kept the information
flowing on topics of interest to beef producers
in Ontario. Our flagship e-magazine, LYRIC’s,
highlighted 35 beef research articles, we ran
five full articles through Research Scout on a
variety of beef-specific research results from
UoG, and 19 beef-specific research snapshots
from around the globe. If you would like a list
of these, please let us know.
We keep a watching brief on the infrastructure
developments at Elora. A visit just before
the holidays confirmed the new beef
research barn is on-schedule for completion
in mid-2019, and we look forward to its
commissioning and the research results it will
produce.
BFO did not run an open call for proposals
through LRIC this year, but we look forward
to doing so using the LRIC Smart Simple web-
based platform in the coming years.
In 2019, our strategic focus is shifting
away from a concentration on research
management and moving to developing
systems that will ensure that, in the future,
results of research are utilized by industry
more quickly, thus accelerating the rate
of return on research. We have requested
some specific funds from OMAFRA to set the
wheels in motion on this and we hope for
great things going forward.
Finally, the LRIC Board understands how
it’s hard to focus on anything else in these
tough economic and uncertain trading times
made even more challenging by the constant
harassment by the press. LRIC is very grateful
for the financial and human resource support
BFO provides to us. It is your support that
helps secure the OMAFRA funding which is
what underpins the organization and enables
us to deliver all of the information and
services that we do. We sincerely thank the
BFO Board for its continuing support and look
forward to working with you to ensure that,
through research, beef production remains
sustainable and profitable for a very long time
to come.
BFO ANNUAL REPORT 2019 I 63
As a producer organization, the Ontario Cattle
Feeders’ Association (OCFA) is committed
to moving the beef industry forward. The
commitment is not just to the feedlot sector,
it’s also working to enhance the sustainability
of cattle and beef production in Ontario.
As such, our commitment to advance the
industry also extends to the backgrounding
and cow-calf sectors.
From the beginning, we have worked from
a blueprint to help achieve our goal for a
sustainable beef industry. This blueprint,
which is based on mutual trust between
partners, has enabled us to build the Ontario
Corn Fed Beef (OCFB) program. We continue
to enjoy a strong partnership with the Beef
Farmers of Ontario. The support we have
received over the years has been integral
to the success and the growth of the OCFB
brand.
Our program continues to grow from that
seed we planted 20 years ago. From those
humble beginnings, the program has evolved
into a full-fledged branding and marketing
strategy that is recognized both domestically
and on the world stage. I think the Ontario
beef industry needs to be very proud of what
they have created under the brand name of
Ontario Corn Fed Beef.
As I have said in the past, the primary goal
of the OCFB program is to bring value to the
whole beef industry. With that priority in mind,
the OCFA commissioned Kevin Grier Market
Analysis and Consulting to conduct an
independent study of the impact of the OCFB
program. As for the program’s effect on cattle
prices, Grier found that the basis or local
price spread in Ontario is stronger by about
$2-3/cwt on a dressed basis or about $25-
30/head due to the Ontario Corn Fed Beef
program. He also noted that the $2-3/cwt in
added value is “applied to all cattle marketed
in Ontario, not just the Corn Fed program
cattle.” He also wrote that the added value is
passed through the chain and that the added
dollars are for all cattle, “OCFB program and
non-program.”
In his presentation to the recent Beef Industry
Convention, Grier noted that the program is
helping the Ontario beef industry to compete
in the marketplace. A key reason, he found,
was differentiation. Grier said our partners
want to participate in the program because
they believe the Corn Fed brand helps their
company differentiate themselves, allowing
them to have something that others don’t
possess. Grier also said the partners like the
fact that OCFB is a farmer-owned program.
Whereas most brands are corporate-
developed, Grier said people like the
uniqueness of having a program developed
by farmers.
The attributes mentioned by Grier also
resonate strongly with Loblaw Companies
Ltd. Canada’s leading food retailer remains a
valued partner for OCFB, and we are looking
forward to an exciting year in 2019. This past
year, the company expanded our partnership
by offering Ontario Corn Fed Beef at its No
Frills stores. This move brought our products
to another 172 locations across the province.
We were pleased to have Jim Saufl, Vice
President of Loblaw Fresh Food Market
Division, join us at the Beef Convention. In his
remarks, Saufl showed his enthusiasm for the
brand, noting that OCFB and Loblaw share
common values. The similarities include a
commitment to great-tasting beef, caring
for the environment, sourcing locally and
enhancing the community. Saufl said plans
are being made to increase the presence of
OCFB in the stores this year.
We also saw more growth in food service. The
Canyon Creek restaurant chain continued its
commitment by offering a new “Mushroom
New York Striploin,” featuring a Triple-A
grade Ontario Corn Fed Beef striploin steak.
Besides serving a great tasting product,
ONTARIO CATTLE FEEDERS’ ASSOCIATION
64 I BFO ANNUAL REPORT 2019
Canyon Creek is proud to be supporting the
family farmers that produce Ontario Corn Fed
Beef.
As well, our beef was featured at The Pickle
Barrel in all 14 locations across the Greater
Toronto Area as part of their Local Harvest
promotion. Elements of the brand story are
included on the menu to promote the local
farming families as well as the unique quality
assurance protocols of our beef products.
As we have been focusing on building new
markets, it’s also important to note that we
continue to work with the small retail and
gourmet butcher shops that were with us in the
beginning. We also have strong partnerships
with other food service providers such as
Sysco and Morton Wholesale.
In addition to building and maintaining
partnerships close to home, we continue to
seek new partners in international markets.
Japan, in particular, has been an excellent
market for Ontario Corn Fed Beef. We look
forward to more opportunities in the future
now that the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership
(CPTPP) is in effect.
The appetite for our product has been
growing at a fantastic pace in Japan.
Ontario Corn Fed Beef is now featured in
five Japanese retail chains. The most recent
partner has a national presence across the
country and represents 120 new retail stores.
In addition to retail, we’re also seeing interest
from foodservice customers in Japan. Of
note, a Marriott hotel in Tokyo is now offering
Ontario Corn Fed Beef on its menu.
To bolster our marketing efforts in Japan and
Asia, we have recently added a new member
to our team. Daisuke Shimojima “Shimo” is
our program manager, market development
for Asia. He brings a wealth of experience
to the position. He previously worked with
Canada Beef as the executive director
for Asia. Before working for Canada Beef,
he was involved with marketing Certified
Angus Beef in Asia. We expect that Shimo
will provide a great bonus to our marketing
efforts overseas. Similar to our domestic
customers, Japanese consumers are keenly
interested in our brand. They want to know
where the food is coming from and how it
is produced. And backed by our industry-
leading Quality Assurance Program, we have
a great production story to tell.
In closing, I would like to thank everybody
in the entire agricultural sector who have
partnered with us and supported us and
our program. I would also like to express
our appreciation for the support we have
received from the Beef Farmers of Ontario,
the Government of Ontario and the Grain
Farmers of Ontario. Thanks also go out to
the board of directors and the staff for their
support and for believing in what I do to make
the Ontario Corn Fed Beef Program a success
story for our entire industry.
BFO ANNUAL REPORT 2019 I 65
Jim ClarkOCFA EXECUTIVE DIRECTOR
66 I BFO ANNUAL REPORT 2019
1983 $496,350 1995 $5,203,392 2007 $6,183,703 1984 $1,559,367 1996 $5,816,257 2008 $6,512,681 1985 $2,111,466 1997 $6,078,412 2009 $6,824,578 1986 $2,803,336 1998 $6,480,147 2010 $7,131,542 1987 $3,470,057 1999 $6,743,918 2011 $7,122,407 1988 $3,629,155 2000 $7,070,770 2012 $7,311,131 1989 $4,353,020 2001 $5,484,329 2013 $6,876,848 1990 $4,683,492 2002 $4,928,346 2014 $7,347,626 1991 $4,267,196 2003 $5,218,720 2015 $7,063,727 1992 $4,882,453 2004 $5,306,236 2016 $7,103,567 1993 $5,047,632 2005 $5,265,078 2017 $ 7,349,117 1994 $5,470,264 2006 $5,538,243 2018 $ 7,591,604
Fund Balance at March 31st, 2018Note:
1) Total income in 1982-83 includes a $25,000 start-up grant from OMAFRA.
2) Deductions to the Fund were lowered from$0.20/head to $0.10/head in 1984. Deductions were lowered from $0.10/head to $0.05/head in April 1989 for sellers and agents and eliminated for buyers. Deductions were increased from $0.05/head to $0.10/head in 2016.
3) Fund expenses include the board and expenses for determining financial responsibility.
INCOME March 31
Deduction Income Investment Income Total Income
1982-90 $ 4,193,421 $ 1,840,250 $ 6,033,670
1990-91 122,045 550,719 672,764
1991-92 122,690 516,580 639,270
1992-93 129,619 359,584 489,203
1993-94 118,522 320,641 439,164
1994-95 117,214 272,497 389,711
1995-96 116,336 395,416 511,751
1996-97 122,363 280,360 402,723
1997-98 129,849 285,801 415,650
1998-99 119,662 330,511 450,173
1999-2000 117,271 291,267 408,537
2000-2001 117,586 461,611 579,197
2001-2002 104,694 210,047 314,741
2002-2003 116,558 196,465 313,023
2003-2004 100,233
186,020
286,253
2004-2005 106,275 170,477 276,752
2005-2006 115,188 222,225 337,413
2006-2007 103,033 254,962 357,995
2007-2008
102,652
296,185
398,837
2008-2009 113,422 265,844 379,267
2009-2010 100,248 262,957 363,205
2010-2011 109,882 264,454 374,336
2011-2012 105,346 269,320 374,666
2012-2013 106,068 244,642 350,710
2013-2014 112,525 245,792 358,316
2014-2015 110,083 254,063 364,146
2015-2016 109,267 241,410 350,677
2016-2017 204,805 237,478 442,283
2017-2018 199,631 246,024 445,655
EXPENSE March 31
Claims Paid Less Recoveries
Fund Expenses Total Expenses
1982-90 $ 1,144,988 $ 230,190 $ 1,375,178
1990-91 1,062,592 26,468 1,089,060
1991-92 (4,128) 28,141 24,013
1992-93 297,706 26,318 324,024
1993-94 0 16,531 16,531
1994-95 631,307 25,276 656,583
1995-96 (140,770) 39,655 (101,115)
1996-97 84,964 55,604 140,568
1997-98 1,040 12,874 13,915
1998-99 135,420 51,087 186,507
1999-2000 7,534 74,151 81,685
2000-2001 2,086,337 79,302 2,165,639
2001-2002 678,357 192,367 870,724
2002-2003 (39,760) 63,465 23,705
2003-2004 131,342 66,473 197,815
2004-2005 247,787 69,989 317,776
2005-2006 0 64,248 64,248
2006-2007 (350,000) 62,535 (287,465)
2007-2008
0
69,859
69,859
2008-2009 0 67,631 67,631
2009-2010 (31,044) 87,295 56,251
2010-2011 235,110 148,360 716,338
2011-2012 69,371 116,571 402,483
2012-2013 657,227 127,766 784,993
2013-2014 (290,926) 179,348 (111,578)
2014-2015 164,452 179,770 344,222
2015-2016 387,136 227,524 614,660
2016-2017 0 196,733 196,733
2017-2018 0 203,168 203,168
ONTARIO BEEF CATTLE FINANCIAL PROTECTION FUND
BFO ANNUAL REPORT 2019 I 67
FINANCIALS
2018 Audited Financial StatementsFor the year ended December 31, 2018
2019 Preliminary Budget
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68 I BFO ANNUAL REPORT 2019
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+Π ΘΩΤ ΘΡΚΠΚΘΠ ςϑΓΥΓ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ΡΤΓΥΓΠς ΗΧΚΤΝ[ ΚΠ ΧΝΝ ΟΧςΓΤΚΧΝ ΤΓΥΡΓΕςΥ ςϑΓ ΗΚΠΧΠΕΚΧΝ ΡΘΥΚςΚΘΠ ΘΗ ∃ΓΓΗ(ΧΤΟΓΤΥΘΗ1ΠςΧΤΚΘΧΥΧς &ΓΕΓΟ∆ΓΤΧΠΦ ςϑΓΤΓΥΩΝςΥΘΗ ΚςΥΘΡΓΤΧςΚΘΠΥΧΠΦΚςΥΕΧΥϑΗΝΘΨΥΗΘΤςϑΓ [ΓΧΤςϑΓΠΓΠΦΓΦΚΠΧΕΕΘΤΦΧΠΕΓΨΚςϑ %ΧΠΧΦΚΧΠΧΕΕΘΩΠςΚΠΙΥςΧΠΦΧΤΦΥΗΘΤΠΘςΗΘΤΡΤΘΗΚςΘΤΙΧΠΚ∴ΧςΚΘΠΥ
∃ΧΥΚΥΘΗ1ΡΚΠΚΘΠ9ΓΕΘΠΦΩΕςΓΦΘΩΤΧΩΦΚς ΚΠΧΕΕΘΤΦΧΠΕΓΨΚςϑ%ΧΠΧΦΚΧΠΙΓΠΓΤΧΝΝ[ΧΕΕΓΡςΓΦΧΩΦΚςΚΠΙΥςΧΠΦΧΤΦΥ1ΩΤΤΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥΩΠΦΓΤ ςϑΘΥΓ ΥςΧΠΦΧΤΦΥ ΧΤΓ ΗΩΤςϑΓΤ ΦΓΥΕΤΚ∆ΓΦ ΚΠ ςϑΓ #ΩΦΚςΘΤΥ 4ΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥ ΗΘΤ ςϑΓ #ΩΦΚς ΘΗ ςϑΓ (ΚΠΧΠΕΚΧΝ5ςΧςΓΟΓΠςΥ ΥΓΕςΚΘΠ ΘΗ ΘΩΤ ΤΓΡΘΤς 9Γ ΧΤΓ ΚΠΦΓΡΓΠΦΓΠς ΘΗ ςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΚΠ ΧΕΕΘΤΦΧΠΕΓ ΨΚςϑ ςϑΓ ΓςϑΚΕΧΝΤΓΣΩΚΤΓΟΓΠςΥ ςϑΧςΧΤΓΤΓΝΓΞΧΠςςΘΘΩΤΧΩΦΚςΘΗ ςϑΓ ΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥΚΠ%ΧΠΧΦΧΧΠΦΨΓϑΧΞΓΗΩΝΗΚΝΝΓΦΘΩΤΘςϑΓΤΓςϑΚΕΧΝ ΤΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥ ΚΠ ΧΕΕΘΤΦΧΠΕΓ ΨΚςϑ ςϑΓΥΓ ΤΓΣΩΚΤΓΟΓΠςΥ 9Γ ∆ΓΝΚΓΞΓ ςϑΧς ςϑΓ ΧΩΦΚς ΓΞΚΦΓΠΕΓ ΨΓ ϑΧΞΓΘ∆ςΧΚΠΓΦΚΥΥΩΗΗΚΕΚΓΠςΧΠΦΧΡΡΤΘΡΤΚΧςΓςΘΡΤΘΞΚΦΓΧ∆ΧΥΚΥΗΘΤΘΩΤΘΡΚΠΚΘΠ
4ΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥΘΗ/ΧΠΧΙΓΟΓΠςΧΠΦ6ϑΘΥΓ%ϑΧΤΙΓΦΨΚςϑ)ΘΞΓΤΠΧΠΕΓΗΘΤςϑΓ(ΚΠΧΠΕΚΧΝ5ςΧςΓΟΓΠςΥ/ΧΠΧΙΓΟΓΠςΚΥΤΓΥΡΘΠΥΚ∆ΝΓΗΘΤςϑΓΡΤΓΡΧΤΧςΚΘΠΧΠΦΗΧΚΤΡΤΓΥΓΠςΧςΚΘΠΘΗςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥΚΠΧΕΕΘΤΦΧΠΕΓΨΚςϑ%ΧΠΧΦΚΧΠ ΧΕΕΘΩΠςΚΠΙ ΥςΧΠΦΧΤΦΥ ΗΘΤ ΠΘς ΗΘΤ ΡΤΘΗΚς ΘΤΙΧΠΚ∴ΧςΚΘΠΥ ΧΠΦ ΗΘΤ ΥΩΕϑ ΚΠςΓΤΠΧΝ ΕΘΠςΤΘΝ ΧΥ ΟΧΠΧΙΓΟΓΠςΦΓςΓΤΟΚΠΓΥ ΚΥ ΠΓΕΓΥΥΧΤ[ ςΘ ΓΠΧ∆ΝΓ ςϑΓ ΡΤΓΡΧΤΧςΚΘΠ ΘΗ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ςϑΧς ΧΤΓ ΗΤΓΓ ΗΤΘΟ ΟΧςΓΤΚΧΝΟΚΥΥςΧςΓΟΓΠςΨϑΓςϑΓΤΦΩΓςΘΗΤΧΩΦΘΤΓΤΤΘΤ
+Π ΡΤΓΡΧΤΚΠΙ ςϑΓ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ΟΧΠΧΙΓΟΓΠς ΚΥ ΤΓΥΡΘΠΥΚ∆ΝΓ ΗΘΤ ΧΥΥΓΥΥΚΠΙ ςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΥ Χ∆ΚΝΚς[ ςΘΕΘΠςΚΠΩΓ ΧΥ Χ ΙΘΚΠΙ ΕΘΠΕΓΤΠ ΦΚΥΕΝΘΥΚΠΙ ΧΥ ΧΡΡΝΚΕΧ∆ΝΓΟΧςςΓΤΥ ΤΓΝΧςΓΦ ςΘ ΧΙΘΚΠΙΕΘΠΕΓΤΠΧΠΦΩΥΚΠΙ ςϑΓΙΘΚΠΙΕΘΠΕΓΤΠ ∆ΧΥΚΥ ΘΗ ΧΕΕΘΩΠςΚΠΙ ΩΠΝΓΥΥ ΟΧΠΧΙΓΟΓΠς ΓΚςϑΓΤ ΚΠςΓΠΦΥ ςΘ ΝΚΣΩΚΦΧςΓ ςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΘΤ ςΘ ΕΓΧΥΓΘΡΓΤΧςΚΘΠΥΘΤϑΧΥΠΘΤΓΧΝΚΥςΚΕΧΝςΓΤΠΧςΚΞΓ∆ΩςςΘΦΘΥΘ
6ϑΘΥΓΕϑΧΤΙΓΦΨΚςϑΙΘΞΓΤΠΧΠΕΓΧΤΓΤΓΥΡΘΠΥΚ∆ΝΓΗΘΤΘΞΓΤΥΓΓΚΠΙςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΥΗΚΠΧΠΕΚΧΝΤΓΡΘΤςΚΠΙΡΤΘΕΓΥΥ
#ΩΦΚςΘΤΥ4ΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥΗΘΤςϑΓ#ΩΦΚςΘΗςϑΓ(ΚΠΧΠΕΚΧΝ5ςΧςΓΟΓΠςΥ1ΩΤΘ∆ΛΓΕςΚΞΓΥΧΤΓ ςΘΘ∆ςΧΚΠ ΤΓΧΥΘΠΧ∆ΝΓΧΥΥΩΤΧΠΕΓΧ∆ΘΩςΨϑΓςϑΓΤ ςϑΓ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ΧΥΧΨϑΘΝΓΧΤΓ ΗΤΓΓΗΤΘΟ ΟΧςΓΤΚΧΝ ΟΚΥΥςΧςΓΟΓΠς ΨϑΓςϑΓΤ ΦΩΓ ςΘ ΗΤΧΩΦ ΘΤ ΓΤΤΘΤ ΧΠΦ ςΘ ΚΥΥΩΓ ΧΠ ΧΩΦΚςΘΤΥ ΤΓΡΘΤς ςϑΧς ΚΠΕΝΩΦΓΥ ΘΩΤΘΡΚΠΚΘΠ 4ΓΧΥΘΠΧ∆ΝΓ ΧΥΥΩΤΧΠΕΓ ΚΥ Χ ϑΚΙϑ ΝΓΞΓΝ ΘΗ ΧΥΥΩΤΧΠΕΓ ∆Ως ΚΥ ΠΘς Χ ΙΩΧΤΧΠςΓΓ ςϑΧς ΧΠ ΧΩΦΚς ΕΘΠΦΩΕςΓΦ ΚΠΧΕΕΘΤΦΧΠΕΓΨΚςϑ%ΧΠΧΦΚΧΠΙΓΠΓΤΧΝΝ[ΧΕΕΓΡςΓΦΧΩΦΚςΚΠΙΥςΧΠΦΧΤΦΥΨΚΝΝΧΝΨΧ[ΥΦΓςΓΕςΧΟΧςΓΤΚΧΝΟΚΥΥςΧςΓΟΓΠςΨϑΓΠΚς ΓΖΚΥςΥ /ΚΥΥςΧςΓΟΓΠςΥ ΕΧΠ ΧΤΚΥΓ ΗΤΘΟ ΗΤΧΩΦ ΘΤ ΓΤΤΘΤ ΧΠΦ ΧΤΓ ΕΘΠΥΚΦΓΤΓΦ ΟΧςΓΤΚΧΝ ΚΗ ΚΠΦΚΞΚΦΩΧΝΝ[ ΘΤ ΚΠ ςϑΓΧΙΙΤΓΙΧςΓ ςϑΓ[ΕΘΩΝΦΤΓΧΥΘΠΧ∆Ν[∆ΓΓΖΡΓΕςΓΦςΘΚΠΗΝΩΓΠΕΓςϑΓΓΕΘΠΘΟΚΕΦΓΕΚΥΚΘΠΥΘΗΩΥΓΤΥςΧΜΓΠΘΠςϑΓ∆ΧΥΚΥΘΗςϑΓΥΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ
# ΗΩΤςϑΓΤΦΓΥΕΤΚΡςΚΘΠ ΘΗ ςϑΓ ΧΩΦΚςΘΤΥ ΤΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥ ΗΘΤ ςϑΓ ΧΩΦΚς ΘΗ ςϑΓ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ΚΥ ΝΘΕΧςΓΦΧς4.∃..2∝ΥΨΓ∆ΥΚςΓΧς ΨΨΨΤΝ∆ΕΧΧΦΦΚςΚΘΠΧΝΧΩΦΚςΘΤΤΓΥΡΘΠΥΚ∆ΚΝΚςΚΓΥ6ϑΚΥΦΓΥΕΤΚΡςΚΘΠΗΘΤΟΥΡΧΤςΘΗΘΩΤΧΩΦΚςΘΤΥΤΓΡΘΤς
)ΩΓΝΡϑ1ΠςΧΤΚΘ %ϑΧΤςΓΤΓΦ2ΤΘΗΓΥΥΚΘΠΧΝ#ΕΕΘΩΠςΧΠςΥ(Γ∆ΤΩΧΤ[ .ΚΕΓΠΥΓΦ2Ω∆ΝΚΕ#ΕΕΘΩΠςΧΠςΥ
2ΧΙΓ
BFO ANNUAL REPORT 2019 I 69
∃∋∋((#4/∋451(106#4+1
56#6∋/∋061((+0#0%+#.215+6+10
#5#6&∋%∋/∃∋4
#55∋65%744∋06#55∋65
%ΧΥϑ #ΕΕΘΩΠςΥΧΠΦΙΤΧΠςΥΤΓΕΓΚΞΧ∆ΝΓ #ΕΕΤΩΓΦΕϑΓΕΜΘΗΗΗΓΓΥΤΓΕΓΚΞΧ∆ΝΓ +ΠΞΓΥςΟΓΠςΥ ΠΘςΓ +ΠΞΓΠςΘΤ[ΥΩΡΡΝΚΓΥ +ΠΞΓΠςΘΤ[ΝΚΞΓΥςΘΕΜ ΠΘςΓ 2ΤΓΡΧΚΦΓΖΡΓΠΥΓΥ
%#2+6#.#55∋65 ΠΘςΓ
.+#∃+.+6+∋5
%744∋06.+#∃+.+6+∋5#ΕΕΘΩΠςΥΡΧ[Χ∆ΝΓΧΠΦΧΕΕΤΩΓΦΝΚΧ∆ΚΝΚςΚΓΥ #ΕΕΤΩΓΦ0ΧςΚΘΠΧΝΕϑΓΕΜΘΗΗΡΧ[ΟΓΠςΥΡΧ[Χ∆ΝΓ &ΓΗΓΤΤΓΦΤΓΞΓΠΩΓ ΠΘςΓ 4ΓΥΓΧΤΕϑςΤΩΥςΝΚΧ∆ΚΝΚς[0ΓΨ.ΚΥΜΓΧΤΦ ΠΘςΓ )ΘΞΓΤΠΟΓΠςΤΓΟΚςςΧΠΕΓΥΡΧ[Χ∆ΝΓ
0∋6#55∋65
0∋6#55∋65+ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦ∆ΩΚΝΦΚΠΙΤΓΡΧΚΤΗΩΠΦΠΘςΓΙ +ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠΗΩΠΦΠΘςΓΙ +ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦΤΓΥΓΧΤΕϑΧΠΦΡΤΘΛΓΕςΥΗΩΠΦΠΘςΓΙ 7ΠΤΓΥςΤΚΕςΓΦ
5ΓΓΠΘςΓΥςΘςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ2ΧΙΓ
70 I BFO ANNUAL REPORT 2019
∃∋∋((#4/∋451(106#4+1
56#6∋/∋061(%∗#0)∋5+00∋6#55∋65
(146∗∋;∋#4∋0&∋&&∋%∋/∃∋4
+06∋40#..;+06∋40#..;4∋564+%6∋& +06∋40#..;4∋564+%6∋& ∋.14# 4∋564+%6∋&∃7+.&+0) 4∋5∋#4%∗ 4∋5∋#4%∗4∋2#+4 56#6+10 #0&241,∋%65 704∋(70& (70& (70& 564+%6∋&
ΠΘςΓΙ ΠΘςΓΙ ΠΘςΓΙ
∃#.#0%∋∆ΓΙΚΠΠΚΠΙΘΗ[ΓΧΤ
&ΓΗΚΕΚΓΠΕ[ΘΗΚΠΕΘΟΓΘΞΓΤΓΖΡΓΠΥΓΥ
6ΤΧΠΥΗΓΤΥ ΠΘςΓ
∃#.#0%∋ΓΠΦΘΗ[ΓΧΤ
5ΓΓΠΘςΓΥςΘςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ2ΧΙΓ
BFO ANNUAL REPORT 2019 I 71
∃∋∋((#4/∋451(106#4+1
56#6∋/∋061(12∋4#6+105
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
∃7&)∋6 #%67#. #%67#.ΠΘςΓ
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ΦΧ[ΦΓΧΝΓΤΤΓΗΩΠΦ
+ΠΞΓΥςΟΓΠςΚΠΕΘΟΓ /ΧΙΧ∴ΚΠΓΤΓΞΓΠΩΓ 1ςϑΓΤΚΠΕΘΟΓ
6ΘΤΘΠςΘ5ςΘΕΜ[ΧΤΦΥ.ΧΠΦ&ΓΞΓΝΘΡΟΓΠς∃ΘΧΤΦ
ΠΘςΓ ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠ#ΙΤΚ+ΠΠΘΞΧςΚΘΠΡΤΘΙΤΧΟΙΤΧΠς )ΤΧΠςΥΠΘςΓ
∋:2∋05∋5#ΥΥΘΕΚΧςΚΘΠΧΕςΚΞΚςΚΓΥ∆ΩΦΙΓςΓΦΥΕϑΓΦΩΝΓ 1ΡΓΤΧςΚΘΠΥ∆ΩΦΙΓςΓΦΥΕϑΓΦΩΝΓ ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠ
&∋(+%+∋0%;1(+0%1/∋18∋4∋:2∋05∋5ΗΘΤςϑΓ[ΓΧΤ
5ΓΓΠΘςΓΥςΘςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ2ΧΙΓ
72 I BFO ANNUAL REPORT 2019
∃∋∋((#4/∋451(106#4+1
56#6∋/∋061(%#5∗(.195
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
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#ΟΘΤςΚ∴ΧςΚΘΠ
%ϑΧΠΙΓΥΚΠΠΘΠΕΧΥϑΨΘΤΜΚΠΙΕΧΡΚςΧΝ#ΕΕΘΩΠςΥΧΠΦΙΤΧΠςΥΤΓΕΓΚΞΧ∆ΝΓ #ΕΕΤΩΓΦΕϑΓΕΜΘΗΗΗΓΓΥΤΓΕΓΚΞΧ∆ΝΓ +ΠΞΓΠςΘΤ[ΥΩΡΡΝΚΓΥ +ΠΞΓΠςΘΤ[ΝΚΞΓΥςΘΕΜ 2ΤΓΡΧΚΦΓΖΡΓΠΥΓΥ #ΕΕΘΩΠςΥΡΧ[Χ∆ΝΓΧΠΦΧΕΕΤΩΓΦΝΚΧ∆ΚΝΚςΚΓΥ #ΕΕΤΩΓΦΠΧςΚΘΠΧΝΕϑΓΕΜΘΗΗΡΧ[ΟΓΠςΥ &ΓΗΓΤΤΓΦΤΓΞΓΠΩΓ )ΘΞΓΤΠΟΓΠςΤΓΟΚςςΧΠΕΓΥΡΧ[Χ∆ΝΓ 4ΓΥΓΧΤΕϑςΤΩΥςΝΚΧ∆ΚΝΚς[0ΓΨ.ΚΥΜΓΧΤΦ
%#5∗2418+&∋&∃;75∋&+0+08∋56+0)#%6+8+6+∋5#ΦΦΚςΚΘΠΥςΘΕΧΡΚςΧΝΧΥΥΓςΥ +ΠΞΓΥςΟΓΠςΥ
0∋6+0%4∋#5∋&∋%4∋#5∋+0%#5∗
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5ΓΓΠΘςΓΥςΘςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ2ΧΙΓ
BFO ANNUAL REPORT 2019 I 73
∃∋∋((#4/∋451(106#4+1
016∋5616∗∋(+0#0%+#.56#6∋/∋065
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
274215∋1(6∗∋14)#0+<#6+10
∃ΓΓΗ(ΧΤΟΓΤΥΘΗ1ΠςΧΤΚΘΚΥΧςΧΖΓΖΓΟΡς∆ΘΦ[ΓΥςΧ∆ΝΚΥϑΓΦ∆[2ΤΘΞΚΠΕΚΧΝΝΓΙΚΥΝΧςΚΘΠςΘΥΩΡΡΘΤςςϑΓ∆ΓΓΗΕΧςςΝΓΚΠΦΩΥςΤ[ΚΠ1ΠςΧΤΚΘςϑΤΘΩΙϑΡΤΘΟΘςΚΘΠΤΓΥΓΧΤΕϑΧΠΦΘςϑΓΤΧΕςΚΞΚςΚΓΥ
57//#4;1(5+)0+(+%#06#%%1706+0)21.+%+∋5
6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΚΥΥΩ∆ΛΓΕς ςΘςϑΓ1ΠςΧΤΚΘ∃ΩΥΚΠΓΥΥ%ΘΤΡΘΤΧςΚΘΠΥ#Ες6ϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥϑΧΞΓ ∆ΓΓΠ ΡΤΓΡΧΤΓΦ ΚΠ ΧΕΕΘΤΦΧΠΕΓ ΨΚςϑ %ΧΠΧΦΚΧΠ ΧΕΕΘΩΠςΚΠΙ ΥςΧΠΦΧΤΦΥ ΗΘΤ ΠΘς ΗΘΤ ΡΤΘΗΚςΘΤΙΧΠΚ∴ΧςΚΘΠΥΧΠΦΚΠΕΝΩΦΓςϑΓΗΘΝΝΘΨΚΠΙΥΚΙΠΚΗΚΕΧΠςΧΕΕΘΩΠςΚΠΙΡΘΝΚΕΚΓΥ
Χ 4∋8∋07∋4∋%1)0+6+10
6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΗΘΝΝΘΨΥ ςϑΓ ΤΓΥςΤΚΕςΓΦ ΗΩΠΦΟΓςϑΘΦ ΘΗ ΧΕΕΘΩΠςΚΠΙ ΗΘΤ ΕΘΠςΤΚ∆ΩςΚΘΠΥ ΚΠΨϑΚΕϑΓΖςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦΕΘΠςΤΚ∆ΩςΚΘΠΥΧΤΓ ΤΓΕΘΙΠΚ∴ΓΦΩΡΘΠ ΤΓΕΓΚΡς ΚΠ ςϑΓΧΡΡΤΘΡΤΚΧςΓΗΩΠΦΕΘΤΤΓΥΡΘΠΦΚΠΙςΘςϑΓΡΩΤΡΘΥΓΗΘΤΨϑΚΕϑςϑΓ[ΨΓΤΓΕΘΠςΤΚ∆ΩςΓΦ∋ΖςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦΕΘΠςΤΚ∆ΩςΚΘΠΥ ΘΗ ςϑΓ ΩΠΤΓΥςΤΚΕςΓΦ ΗΩΠΦ ΧΤΓ ΤΓΕΘΙΠΚ∴ΓΦ ΧΥ ΤΓΞΓΠΩΓ ΨϑΓΠ ςϑΓ ΤΓΝΧςΓΦΓΖΡΓΠΦΚςΩΤΓΘΕΕΩΤΥ7ΠΤΓΥςΤΚΕςΓΦΤΓΞΓΠΩΓΥΧΤΓΤΓΕΘΙΠΚ∴ΓΦΚΠςϑΓΩΠΤΓΥςΤΚΕςΓΦΗΩΠΦΨϑΓΠΤΓΕΓΚΞΓΦΘΤΤΓΕΓΚΞΧ∆ΝΓΧΠΦΕΘΝΝΓΕςΚΘΠΚΥΤΓΧΥΘΠΧ∆Ν[ΧΥΥΩΤΓΦ
∆ +08∋0614;
+ΠΞΓΠςΘΤ[ ΚΥΥςΧςΓΦΧς ςϑΓΝΘΨΓΤΘΗΕΘΥςΩΥΚΠΙ ςϑΓΨΓΚΙϑςΓΦΧΞΓΤΧΙΓΕΘΥς∆ΧΥΚΥΧΠΦΠΓςΤΓΧΝΚ∴Χ∆ΝΓΞΧΝΩΓ
Ε %#2+6#.#55∋65
%ΧΡΚςΧΝΧΥΥΓςΥΧΤΓΤΓΕΘΤΦΓΦΧςΕΘΥςΧΠΦΧΟΘΤςΚ∴ΓΦΘΠςϑΓ∆ΧΥΚΥΘΗςϑΓΚΤΓΥςΚΟΧςΓΦΩΥΓΗΩΝΝΚΗΓΩΥΚΠΙςϑΓΗΘΝΝΘΨΚΠΙΟΓςϑΘΦΥΧΠΦΤΧςΓΥ
∃ΩΚΝΦΚΠΙΧΠΦ∆ΩΚΝΦΚΠΙΤΓΠΘΞΧςΚΘΠΥΦΓΕΝΚΠΚΠΙ∆ΧΝΧΠΕΓ1ΗΗΚΕΓΗΩΤΠΚςΩΤΓΧΠΦΓΣΩΚΡΟΓΠςΦΓΕΝΚΠΚΠΙ∆ΧΝΧΠΕΓ%ΘΟΡΩςΓΤΓΣΩΚΡΟΓΠςΦΓΕΝΚΠΚΠΙ∆ΧΝΧΠΕΓ%ΘΟΡΩςΓΤΥΘΗςΨΧΤΓΦΓΕΝΚΠΚΠΙ∆ΧΝΧΠΕΓ
Φ +/2#+4/∋061(.10).+8∋7∋65
.ΘΠΙ ΝΚΞΓΦ ΧΥΥΓςΥ ΧΤΓ ςΓΥςΓΦ ΗΘΤ ΤΓΕΘΞΓΤΧ∆ΚΝΚς[ ΨϑΓΠΓΞΓΤ ΓΞΓΠςΥ ΘΤ ΕϑΧΠΙΓΥ ΚΠΕΚΤΕΩΟΥςΧΠΕΓΥ ΚΠΦΚΕΧςΓ ςϑΧς ςϑΓΚΤ ΕΧΤΤ[ΚΠΙ ΧΟΘΩΠς ΟΧ[ ΠΘς ∆Γ ΤΓΕΘΞΓΤΧ∆ΝΓ #ΠΚΟΡΧΚΤΟΓΠς ΝΘΥΥ ΚΥ ΤΓΕΘΙΠΚ∴ΓΦΨϑΓΠ ςϑΓΕΧΤΤ[ΚΠΙΞΧΝΩΓΓΖΕΓΓΦΥςϑΓ ςΘςΧΝΩΠΦΚΥΕΘΩΠςΓΦΕΧΥϑ ΗΝΘΨΥ ΓΖΡΓΕςΓΦ ΗΤΘΟ ςϑΓΚΤ ΩΥΓ ΧΠΦ ΓΞΓΠςΩΧΝ ΦΚΥΡΘΥΚςΚΘΠ 6ϑΓ ΧΟΘΩΠς ΘΗ ςϑΓΚΟΡΧΚΤΟΓΠς ΝΘΥΥ ΚΥΦΓςΓΤΟΚΠΓΦΧΥςϑΓΓΖΕΓΥΥΘΗ ςϑΓΕΧΤΤ[ΚΠΙΞΧΝΩΓΘΗ ςϑΓΧΥΥΓςΘΞΓΤ ΚςΥΗΧΚΤΞΧΝΩΓ
Γ 75∋1(∋56+/#6∋5
6ϑΓ ΡΤΓΡΧΤΧςΚΘΠ ΘΗ ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠςΥ ΚΠ ΕΘΠΗΘΤΟΚς[ ΨΚςϑ %ΧΠΧΦΚΧΠ ΧΕΕΘΩΠςΚΠΙΥςΧΠΦΧΤΦΥ ΗΘΤ ΠΘς ΗΘΤΡΤΘΗΚς ΘΤΙΧΠΚ∴ΧςΚΘΠΥ ΤΓΣΩΚΤΓΥΟΧΠΧΙΓΟΓΠς ςΘΟΧΜΓΓΥςΚΟΧςΓΥΧΠΦΧΥΥΩΟΡςΚΘΠΥ ςϑΧςΧΗΗΓΕς ςϑΓΤΓΡΘΤςΓΦΧΟΘΩΠςΥΘΗΧΥΥΓςΥΧΠΦ ΝΚΧ∆ΚΝΚςΚΓΥ ςϑΓΦΚΥΕΝΘΥΩΤΓΘΗΕΘΠςΚΠΙΓΠςΧΥΥΓςΥΧΠΦ ΝΚΧ∆ΚΝΚςΚΓΥΧςςϑΓΦΧςΓΘΗ ςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥΧΠΦςϑΓΤΓΡΘΤςΓΦΧΟΘΩΠςΥ ΘΗ ΤΓΞΓΠΩΓΥ ΧΠΦ ΓΖΡΓΠΥΓΥ ΦΩΤΚΠΙ ςϑΓ [ΓΧΤ 6ϑΓ ΥΚΙΠΚΗΚΕΧΠς ΧΤΓΧΥ ΨϑΓΤΓΓΥςΚΟΧςΓΥ ϑΧΞΓ ∆ΓΓΠΩΥΓΦΧΤΓ ςϑΓΧΕΕΤΩΓΦ ΕϑΓΕΜΘΗΗ ΗΓΓΥ ΤΓΕΓΚΞΧ∆ΝΓ ΧΟΘΤςΚ∴ΧςΚΘΠΧΠΦΧΕΕΤΩΓΦ ΠΧςΚΘΠΧΝ ΕϑΓΕΜΘΗΗ ΡΧ[ΟΓΠςΥ ΡΧ[Χ∆ΝΓ #ΕςΩΧΝ ΤΓΥΩΝςΥ ΕΘΩΝΦ ΦΚΗΗΓΤ ΗΤΘΟ ςϑΘΥΓΓΥςΚΟΧςΓΥ
2ΧΙΓ
74 I BFO ANNUAL REPORT 2019
∃∋∋((#4/∋451(106#4+1
016∋5616∗∋(+0#0%+#.56#6∋/∋065
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
57//#4;1(5+)0+(+%#06#%%1706+0)21.+%+∋5ΕΘΠςΚΠΩΓΦ
Η (+0#0%+#.+05647/∋065
/ΓΧΥΩΤΓΟΓΠςΘΗΗΚΠΧΠΕΚΧΝΚΠΥςΤΩΟΓΠςΥ6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΚΠΚςΚΧΝΝ[ΟΓΧΥΩΤΓΥΚςΥΗΚΠΧΠΕΚΧΝΧΥΥΓςΥΧΠΦΝΚΧ∆ΚΝΚςΚΓΥΧςΗΧΚΤΞΧΝΩΓ
6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΥΩ∆ΥΓΣΩΓΠςΝ[ΟΓΧΥΩΤΓΥΧΝΝΚςΥΗΚΠΧΠΕΚΧΝΧΥΥΓςΥΧΠΦΗΚΠΧΠΕΚΧΝΝΚΧ∆ΚΝΚςΚΓΥΧςΧΟΘΤςΚ∴ΓΦΕΘΥςΓΖΕΓΡς ΗΘΤ ΚςΥ ΚΠΞΓΥςΟΓΠςΥΨϑΚΕϑΧΤΓΟΓΧΥΩΤΓΦΧς ΗΧΚΤΞΧΝΩΓ %ϑΧΠΙΓΥΚΠΗΧΚΤΞΧΝΩΓΧΤΓΤΓΕΘΙΠΚ∴ΓΦΚΠΠΓςΥΩΤΡΝΩΥ
(ΚΠΧΠΕΚΧΝ ΧΥΥΓςΥ ΟΓΧΥΩΤΓΦ Χς ΧΟΘΤςΚ∴ΓΦ ΕΘΥς ΚΠΕΝΩΦΓ ΕΧΥϑ ΧΕΕΘΩΠςΥ ΧΠΦ ΙΤΧΠςΥΤΓΕΓΚΞΧ∆ΝΓΧΠΦΧΕΕΤΩΓΦΕϑΓΕΜΘΗΗΗΓΓΥΤΓΕΓΚΞΧ∆ΝΓ
(ΚΠΧΠΕΚΧΝ ΝΚΧ∆ΚΝΚςΚΓΥΟΓΧΥΩΤΓΦ Χς ΧΟΘΤςΚ∴ΓΦ ΕΘΥς ΚΠΕΝΩΦΓ ΧΕΕΘΩΠςΥΡΧ[Χ∆ΝΓΧΠΦΧΕΕΤΩΓΦΝΚΧ∆ΚΝΚςΚΓΥΧΕΕΤΩΓΦΠΧςΚΘΠΧΝΕϑΓΕΜΘΗΗΡΧ[ΟΓΠςΥΡΧ[Χ∆ΝΓΧΠΦΤΓΥΓΧΤΕϑςΤΩΥςΝΚΧ∆ΚΝΚς[0ΓΨ.ΚΥΜΓΧΤΦ
+ΟΡΧΚΤΟΓΠς(ΚΠΧΠΕΚΧΝ ΧΥΥΓςΥΟΓΧΥΩΤΓΦ Χς ΧΟΘΤςΚ∴ΓΦΕΘΥςΧΤΓ ςΓΥςΓΦ ΗΘΤ ΚΟΡΧΚΤΟΓΠςΨϑΓΠςϑΓΤΓΧΤΓΚΠΦΚΕΧςΘΤΥ ΘΗ ΚΟΡΧΚΤΟΓΠς +Η ΧΠ ΚΟΡΧΚΤΟΓΠς ϑΧΥ ΘΕΕΩΤΤΓΦ ςϑΓ ΕΧΤΤ[ΚΠΙ ΧΟΘΩΠς ΘΗΗΚΠΧΠΕΚΧΝΧΥΥΓςΥΟΓΧΥΩΤΓΦΧςΧΟΘΤςΚ∴ΓΦΕΘΥς ΚΥΤΓΦΩΕΓΦςΘςϑΓΙΤΓΧςΓΤΘΗ ςϑΓΦΚΥΕΘΩΠςΓΦΗΩςΩΤΓ ΕΧΥϑ ΗΝΘΨΥΓΖΡΓΕςΓΦΘΤ ςϑΓΡΤΘΕΓΓΦΥ ςϑΧςΕΘΩΝΦ∆ΓΤΓΧΝΚ∴ΓΦ ΗΤΘΟ ςϑΓΥΧΝΓΘΗ ςϑΓΗΚΠΧΠΕΚΧΝ ΧΥΥΓς 6ϑΓ ΧΟΘΩΠς ΘΗ ςϑΓ ΨΤΚςΓΦΘΨΠ ΚΥ ΤΓΕΘΙΠΚ∴ΓΦ ΚΠ ΠΓς ΥΩΤΡΝΩΥ 6ϑΓΡΤΓΞΚΘΩΥΝ[ ΤΓΕΘΙΠΚ∴ΓΦ ΚΟΡΧΚΤΟΓΠς ΝΘΥΥ ΟΧ[ ∆Γ ΤΓΞΓΤΥΓΦ ςΘ ςϑΓ ΓΖςΓΠς ΘΗ ςϑΓΚΟΡΤΘΞΓΟΓΠς ΦΚΤΓΕςΝ[ ΘΤ ∆[ ΧΦΛΩΥςΚΠΙ ςϑΓ ΧΝΝΘΨΧΠΕΓ ΧΕΕΘΩΠς ΡΤΘΞΚΦΓΦ Κς ΚΥ ΠΘ ΙΤΓΧςΓΤςϑΧΠ ςϑΓ ΧΟΘΩΠς ςϑΧς ΨΘΩΝΦ ϑΧΞΓ ∆ΓΓΠ ΤΓΡΘΤςΓΦ Χς ςϑΓ ΦΧςΓ ΘΗ ςϑΓ ΤΓΞΓΤΥΧΝ ϑΧΦ ςϑΓΚΟΡΧΚΤΟΓΠςΠΘς∆ΓΓΠΤΓΕΘΙΠΚ∴ΓΦΡΤΓΞΚΘΩΥΝ[6ϑΓΧΟΘΩΠςΘΗςϑΓΤΓΞΓΤΥΧΝΚΥΤΓΕΘΙΠΚ∴ΓΦΚΠΠΓςΥΩΤΡΝΩΥ
6ΤΧΠΥΧΕςΚΘΠΕΘΥςΥ6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΤΓΕΘΙΠΚ∴ΓΥ ΚςΥ ςΤΧΠΥΧΕςΚΘΠΕΘΥςΥ ΚΠ ΠΓς ΚΠΕΘΟΓ ΚΠ ςϑΓ ΡΓΤΚΘΦ ΚΠΕΩΤΤΓΦ∗ΘΨΓΞΓΤ ΗΚΠΧΠΕΚΧΝ ΚΠΥςΤΩΟΓΠςΥςϑΧςΨΚΝΝΠΘς∆ΓΥΩ∆ΥΓΣΩΓΠςΝ[ΟΓΧΥΩΤΓΦΧς ΗΧΚΤΞΧΝΩΓΧΤΓΧΦΛΩΥςΓΦ ∆[ ςϑΓ ςΤΧΠΥΧΕςΚΘΠ ΕΘΥςΥ ςϑΧς ΧΤΓ ΦΚΤΓΕςΝ[ ΧςςΤΚ∆ΩςΧ∆ΝΓ ςΘ ςϑΓΚΤ ΘΤΚΙΚΠΧςΚΘΠΚΥΥΩΧΠΕΓΘΤΧΥΥΩΟΡςΚΘΠ
Ι (70&#%%1706+0)
+ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦ∆ΩΚΝΦΚΠΙΤΓΡΧΚΤΗΩΠΦ6ϑΓ ΚΠςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦ ∆ΩΚΝΦΚΠΙ ΤΓΡΧΚΤ ΗΩΠΦ ΤΓΡΘΤςΥ ΤΓΥΘΩΤΕΓΥ ΧΞΧΚΝΧ∆ΝΓ ΗΘΤ ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΥ∆ΩΚΝΦΚΠΙΤΓΡΧΚΤΧΕςΚΞΚςΚΓΥ
+ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠΗΩΠΦ6ϑΓΚΠςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠ ΗΩΠΦΤΓΡΘΤςΥΤΓΥΘΩΤΕΓΥΧΝΝΘΕΧςΓΦ∆[ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠςΘΕΘΞΓΤ ςϑΓΚΠΦΩΥςΤ[ΥϑΧΤΓΘΗΧΠΓΨΕΘΨΕΧΝΗΗΧΕΚΝΚς[ΧςςϑΓ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠ
+ΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦΤΓΥΓΧΤΕϑΧΠΦΡΤΘΛΓΕςΥΗΩΠΦ6ϑΓ ΚΠςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦ ΤΓΥΓΧΤΕϑ ΧΠΦ ΡΤΘΛΓΕςΥ ΗΩΠΦ ΤΓΡΘΤςΥ ΤΓΥΘΩΤΕΓΥ ΧΝΝΘΕΧςΓΦ ∆[ ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΗΘΤΤΓΥΓΧΤΕϑΧΠΦΡΤΘΛΓΕςΕΘΟΟΚςΟΓΠςΥΚΠΗΩςΩΤΓ[ΓΧΤΥ
7ΠΤΓΥςΤΚΕςΓΦΗΩΠΦ6ϑΓ ΩΠΤΓΥςΤΚΕςΓΦΗΩΠΦΤΓΡΘΤςΥΤΓΥΘΩΤΕΓΥΧΞΧΚΝΧ∆ΝΓΗΘΤςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΥΙΓΠΓΤΧΝΘΡΓΤΧςΚΠΙΧΕςΚΞΚςΚΓΥ
2ΧΙΓ
BFO ANNUAL REPORT 2019 I 75
∃∋∋((#4/∋451(106#4+1
016∋5616∗∋(+0#0%+#.56#6∋/∋065
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
(+0#0%+#.+05647/∋065
7ΠΝΓΥΥ ΘςϑΓΤΨΚΥΓ ΠΘςΓΦ Κς ΚΥ ΟΧΠΧΙΓΟΓΠςΥ ΘΡΚΠΚΘΠ ςϑΧς ςϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΚΥ ΠΘς ΓΖΡΘΥΓΦ ςΘΥΚΙΠΚΗΚΕΧΠςΚΠςΓΤΓΥςΕΩΤΤΓΠΕ[ΘΤΕΤΓΦΚςΤΚΥΜΥΧΤΚΥΚΠΙΗΤΘΟΚςΥΗΚΠΧΠΕΚΧΝΚΠΥςΤΩΟΓΠςΥ
6ϑΓΓΖςΓΠςΘΗ ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΥΓΖΡΘΥΩΤΓςΘςϑΓΥΓΤΚΥΜΥΦΚΦΠΘςΕϑΧΠΙΓΚΠΕΘΟΡΧΤΓΦςΘςϑΓΡΤΓΞΚΘΩΥΡΓΤΚΘΦ
6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠΦΘΓΥΠΘςϑΧΞΓΧΥΚΙΠΚΗΚΕΧΠςΓΖΡΘΥΩΤΓςΘΧΠ[ΚΠΦΚΞΚΦΩΧΝΕΩΥςΘΟΓΤΘΤΕΘΩΠςΓΤΡΧΤς
+08∋56/∋065
+ΠΞΓΥςΟΓΠςΥ ΕΘΠΥΚΥς ΘΗ Χ ΕΘΟ∆ΚΠΧςΚΘΠ ΘΗ ΚΠΕΘΟΓ ΧΠΦ ΓΖΕϑΧΠΙΓςΤΧΦΓΦ ΗΩΠΦΥ ΧΥΨΓΝΝ ΧΥ ΕΧΥϑςΓΟΡΘΤΧΤΚΝ[ϑΓΝΦΚΠςϑΓΚΠΞΓΥςΟΓΠςςΤΧΦΚΠΙΧΕΕΘΩΠς
∃ΓΙΚΠΠΚΠΙ∆ΧΝΧΠΕΓ 6ΤΧΠΥΗΓΤΥΚΠςΘΘΩςΘΗΚΠΞΓΥςΟΓΠςΧΕΕΘΩΠς 4ΓΧΝΚ∴ΓΦΙΧΚΠΥΚΠςϑΓ[ΓΧΤ ∃ΤΘΜΓΤΗΓΓΥ 7ΠΤΓΧΝΚ∴ΓΦΝΘΥΥΘΠΧΦΛΩΥςΟΓΠςςΘΟΧΤΜΓςΞΧΝΩΓ
%#2+6#.#55∋65#ΕΕΩΟΩΝΧςΓΦ 0Γς 0Γς
%ΘΥς #ΟΘΤςΚ∴ΧςΚΘΠ
.ΧΠΦ ∃ΩΚΝΦΚΠΙ ∃ΩΚΝΦΚΠΙΤΓΠΘΞΧςΚΘΠΥ 1ΗΗΚΕΓΗΩΤΠΚςΩΤΓΧΠΦΓΣΩΚΡΟΓΠς %ΘΟΡΩςΓΤΓΣΩΚΡΟΓΠς %ΘΟΡΩςΓΤΥΘΗςΨΧΤΓ
&∋(∋44∋&4∋8∋07∋
&ΓΗΓΤΤΓΦΤΓΞΓΠΩΓΕΘΠΥΚΥςΥΘΗΥΡΘΠΥΘΤΥϑΚΡΥΧΠΦςΤΧΦΓΥϑΘΨΥΡΧΕΓΤΓΝΧςΓΦςΘςϑΓΧΠΠΩΧΝΟΓΓςΚΠΙ
∃ΓΙΚΠΠΚΠΙ∆ΧΝΧΠΕΓ .ΓΥΥΧΟΘΩΠςΤΓΕΘΙΠΚ∴ΓΦΚΠςϑΓ[ΓΧΤ #ΦΦΧΟΘΩΠςΤΓΕΓΚΞΓΦΤΓΝΧςΚΠΙςΘςϑΓΗΘΝΝΘΨΚΠΙ[ΓΧΤ
∋ΠΦΚΠΙ∆ΧΝΧΠΕΓ
∃7&)∋6(+)74∋5
6ϑΓ∆ΩΦΙΓςΓΦΗΚΙΩΤΓΥΧΤΓΡΤΓΥΓΠςΓΦΗΘΤΕΘΟΡΧΤΚΥΘΠΡΩΤΡΘΥΓΥΧΥΡΤΓΡΧΤΓΦΧΠΦΧΡΡΤΘΞΓΦ∆[ςϑΓ∃ΘΧΤΦ ΤΓΕΝΧΥΥΚΗΚΓΦ ςΘ ΕΘΠΗΘΤΟ ςΘ ςϑΓ ΕΩΤΤΓΠς ΗΚΠΧΠΕΚΧΝ ΥςΧςΓΟΓΠς ΡΤΓΥΓΠςΧςΚΘΠ 6ϑΓ[ ϑΧΞΓ ΠΘς∆ΓΓΠΧΩΦΚςΓΦΘΤΤΓΞΚΓΨΓΦ∆[ςϑΓΧΩΦΚςΘΤ
2ΧΙΓ
76 I BFO ANNUAL REPORT 2019
∃∋∋((#4/∋451(106#4+1
016∋5616∗∋(+0#0%+#.56#6∋/∋065
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
0#6+10#.%∗∋%−1((#)∋0%;
6ϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΡΧ[ΥΡΓΤϑΓΧΦ ςΘ ςϑΓ0ΧςΚΘΠΧΝ ∃ΓΓΗ%ΧςςΝΓ4ΓΥΓΧΤΕϑ/ΧΤΜΓς&ΓΞΓΝΘΡΟΓΠςΧΠΦ 2ΤΘΟΘςΚΘΠ #ΙΓΠΕ[ ΧΠΦ ΗΘΤ ςϑΓ ΠΧςΚΘΠΧΝ ∆ΓΓΗ ΧΦΞΓΤςΚΥΚΠΙ ΧΠΦ ΡΤΘΟΘςΚΘΠ ΕΧΟΡΧΚΙΠ ΧΠΦΥΩ∆ΥΓΣΩΓΠςΝ[ ΤΓΕΓΚΞΓΥ ΕΓΠςΥ ΡΓΤ ϑΓΧΦ ΗΘΤ ΧΥΥΘΕΚΧςΚΘΠ ΧΕςΚΞΚςΚΓΥΨϑΚΕϑ ΧΤΓ ΧΝΚΙΠΓΦ ΨΚςϑ ςϑΓΠΧςΚΘΠΧΝΡΤΘΕΝΧΟΧςΚΘΠ
(∋∋&∋4(+0#0%∋241)4#/
6ϑΓΘΤΙΧΠΚ∴ΧςΚΘΠϑΧΥΓΟ∆ΧΤΜΓΦΘΠΧΛΘΚΠςΡΤΘΙΤΧΟΨΚςϑςϑΓ1ΠςΧΤΚΘ/ΚΠΚΥςΤ[ΘΗ#ΙΤΚΕΩΝςΩΤΓ(ΘΘΦΧΠΦ4ΩΤΧΝ#ΗΗΧΚΤΥςϑΓΡΩΤΡΘΥΓΘΗΨϑΚΕϑΚΥςΘΙΩΧΤΧΠςΓΓΧΡΘΤςΚΘΠΘΗΝΘΧΠΥςΘΗΓΓΦΓΤΕΧςςΝΓΗΚΠΧΠΕΓΕΘΘΡΓΤΧςΚΞΓΥ ςΘ ΡΩΤΕϑΧΥΓ ΕΧςςΝΓ 6ϑΓ ΓΖΡΓΠΥΓΥ ΧΤΓ ΠΘς ςΘ ΓΖΕΓΓΦ ΚΠ ςϑΓ ΡΤΘΞΚΠΕΚΧΝΙΘΞΓΤΠΟΓΠςΥΗΚΥΕΧΝ[ΓΧΤΧΠΦΧΤΓΗΩΝΝ[ΤΓΕΘΞΓΤΧ∆ΝΓΗΤΘΟςϑΓ/ΚΠΚΥςΤ[
%1//+6/∋065
9Κςϑ ςϑΓ ΗΚΠΧΝ ΡΧ[ΟΓΠς ΘΗ ΚΠ ςϑΓ ∆ΘΧΤΦ ϑΧΥΟΓς ΚςΥ ΕΘΟΟΚςΟΓΠς ςΘ ΗΩΠΦ ΟΚΝΝΚΘΠςΘΨΧΤΦΥςϑΓΠΓΨΕΘΨΕΧΝΗΗΧΕΚΝΚς[ΧςςϑΓ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠ
6ϑΓΘΤΙΧΠΚ∴ΧςΚΘΠϑΧΥΕΘΟΟΚςςΓΦ ςΘ ΗΩΠΦ ΗΩςΩΤΓ ΤΓΥΓΧΤΕϑΡΤΘΛΓΕςΥ ΚΠ ςϑΓΧΟΘΩΠςΘΗ ΚΠΚΠΚΠΧΠΦΚΠςΘςΧΝΝΚΠΙ
0∋9.+5−∋#4&4∋5∋#4%∗∗∋4&
&ΩΤΚΠΙςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΓΠςΓΤΓΦΚΠςΘΧΠΧΙΤΓΓΟΓΠςΨΚςϑςϑΓ1ΠςΧΤΚΘ/ΚΠΚΥςΤ[ΘΗ#ΙΤΚΕΩΝςΩΤΓ(ΘΘΦ ΧΠΦ 4ΩΤΧΝ #ΗΗΧΚΤΥ ΚΠΨϑΚΕϑ ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠ ΧΙΤΓΓΦ ςΘ ΡΩΤΕϑΧΥΓ ςϑΓ∆ΓΓΗ ΕΧςςΝΓ ΤΓΥΓΧΤΕϑϑΓΤΦ ΚΠ 0ΓΨ .ΚΥΜΓΧΤΦ 6ϑΓ ΡΩΤΕϑΧΥΓ ςΘΘΜ ΡΝΧΕΓ ΘΞΓΤ Χ ΡΓΤΚΘΦ ΘΗ [ΓΧΤΥ ΦΩΤΚΠΙ ΨϑΚΕϑ ςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΡΧΚΦΗΘΤςϑΓΧΠΠΩΧΝΕΤΘΡΘΗΕΧΝΞΓΥ∆ΘΤΠΧΠΦΕΘΠςΚΠΩΓΥςΘΤΓΕΓΚΞΓςϑΓΡΤΘΕΓΓΦΥΗΤΘΟΥΧΝΓΘΗςϑΓΥΓΧΠΚΟΧΝΥ#Π[ΓΖΕΓΥΥΡΤΘΕΓΓΦΥΘΞΓΤςΚΟΓΟΩΥς∆ΓΩΥΓΦΗΘΤ∆ΓΓΗΤΓΥΓΧΤΕϑ
6141061561%−;#4&5.#0&&∋8∋.12/∋06∃1#4&
6ϑΓΗΘΤΟΓΤ6ΘΤΘΠςΘΥςΘΕΜ[ΧΤΦΥΝΧΠΦϑΧΥ∆ΓΓΠΦΓΞΓΝΘΡΓΦΧΥΧΕΘΟΟΓΤΕΚΧΝΤΓΠςΧΝΡΤΘΡΓΤς[∆[ςϑΓ6ΘΤΘΠςΘ5ςΘΕΜ[ΧΤΦΥ.ΧΠΦ&ΓΞΓΝΘΡΟΓΠς∃ΘΧΤΦ6ϑΓΘΤΙΧΠΚ∴ΧςΚΘΠΤΓΕΓΚΞΓΥΧΕΘΠςΤΚ∆ΩςΚΘΠΗΤΘΟςϑΚΥΘΤΙΧΠΚ∴ΧςΚΘΠ
)4#064∋8∋07∋
)ΤΧΠςΤΓΞΓΠΩΓΤΓΝΧςΓΥςΘςϑΓΗΘΝΝΘΨΚΠΙΡΤΘΙΤΧΟΥ
(ΓΓΦΓΤ(ΚΠΧΠΕΓ2ΤΘΙΤΧΟΠΘςΓ 0ΘΤςϑΓΤΠ∋ΖΡΧΠΥΚΘΠΡΤΘΛΓΕς 8ΧΝΚΦΧςΚΠΙ1ΠςΧΤΚΘ∃ΓΓΗ6ΓΤΤΘΚΤΡΤΘΛΓΕς 2ΘΘΝΚΠΙΗΘΤ5ΩΥςΧΚΠΧ∆ΝΓ∃ΓΓΗ2ΤΘΦΩΕςΚΘΠΡΤΘΛΓΕς ∋ΠϑΧΠΕΓΦ∃ΩΝΝ∋ΞΧΝΩΧςΚΘΠ 6ΤΩΕΜ4ΘΝΝΘΞΓΤ4ΓΥΡΘΠΥΓΡΤΘΛΓΕς
2ΧΙΓ
BFO ANNUAL REPORT 2019 I 77
∃∋∋((#4/∋451(106#4+1
016∋5616∗∋(+0#0%+#.56#6∋/∋065
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
+06∋4(70&64#05(∋4
&ΩΤΚΠΙςϑΓ[ΓΧΤςϑΓΘΤΙΧΠΚ∴ΧςΚΘΠςΤΧΠΥΗΓΤΤΓΦΗΤΘΟΩΠΤΓΥςΤΚΕςΓΦΗΩΠΦΥςΤΧΠΥΗΓΤςΘΩΠΤΓΥςΤΚΕςΓΦ ΗΩΠΦΥ ΘΗ ςΘ ςϑΓ ΚΠςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦ ΤΓΥΓΧΤΕϑ ΧΠΦ ΡΤΘΛΓΕςΥ ΗΩΠΦ 6ϑΓΕΝΘΥΚΠΙ ∆ΧΝΧΠΕΓ ΚΠ ςϑΓ ΚΠςΓΤΠΧΝΝ[ ΤΓΥςΤΚΕςΓΦ ΤΓΥΓΧΤΕϑ ΧΠΦ ΡΤΘΛΓΕςΥ ΗΩΠΦ ΘΗ ΚΥ ΗΘΤ ∆ΓΓΗΕΧςςΝΓ ΤΓΥΓΧΤΕϑΕΘΟΟΚςΟΓΠςΥ ΚΠ ΗΩςΩΤΓ [ΓΧΤΥ 6ϑΓ ΘΤΙΧΠΚ∴ΧςΚΘΠ ΧΝΥΘ ςΤΧΠΥΗΓΤΤΓΦ ΗΤΘΟςϑΓΚΠςΓΤΠΧΝΝ[ΤΓΥςΤΚΕςΓΦ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠΗΩΠΦςΘΩΠΤΓΥςΤΚΕςΓΦΗΩΠΦΥςΘΕΝΘΥΓςϑΓ∋ΝΘΤΧ4ΓΥΓΧΤΕϑ5ςΧςΚΘΠΗΩΠΦ
2ΧΙΓ
78 I BFO ANNUAL REPORT 2019
∃∋∋((#4/∋451(106#4+1
5%∗∋&7.∋1(∋:2∋05∋5 5ΕϑΓΦΩΝΓ
(146∗∋ ;∋#4∋0&∋&&∋%∋/∃∋4
∃7&)∋6 #%67#. #%67#.ΠΘςΓ
#551%+#6+10#%6+8+6+∋5∃7&)∋6∋&#ΠΠΩΧΝΟΓΓςΚΠΙΠΓςΘΗΤΓΞΓΠΩΓ
)ΤΧΠςΥΧΠΦΟΓΟ∆ΓΤΥϑΚΡΥ%ΧΠΧΦΚΧΠ
%ΧςςΝΓΟΓΠΥ#ΥΥΘΕΚΧςΚΘΠ 0ΧςΚΘΠΧΝΕϑΓΕΜΘΗΗΠΘςΓ %ΘΩΠςΚΓΥ /ΚΥΕΓΝΝΧΠΓΘΩΥΙΤΧΠςΥ (ΧΤΟ(ΘΘΦ%ΧΤΓ1ΠςΧΤΚΘ 1#(∃
%ΘΟΟΩΠΚΕΧςΚΘΠΥΠΓςΘΗΤΓΞΓΠΩΓ
.ΚΕΓΠΥΓΗΓΓΓΠΗΘΤΕΓΟΓΠς
.Θ∆∆[ΚΠΙ ∃ΤΓΓΦΓΤΗΚΠΧΠΕΓΥΩΡΡΘΤς +ΠΦΩΥςΤ[ΦΓΞΓΝΘΡΟΓΠςΧΠΦΤΓΥΓΧΤΕϑ 1%(#ΥΩΡΡΘΤςΗΘΤΟΧΤΜΓςΚΠΙΕΘΤΠΗΓΦ∆ΓΓΗ 4ΓΙΚΘΠΧΝΟΧΤΜΓςΚΠΙΚΠΚςΚΧςΚΞΓ (ΓΓΦΝΘς%ΘΨΕΧΝΗ%ΘΟΟΚςςΓΓ
12∋4#6+105∃7&)∋6∋&∋ΝΓΕςΓΦΘΗΗΚΕΓΤΥΤΓΟΩΠΓΤΧςΚΘΠ ∋ΝΓΕςΓΦΘΗΗΚΕΓΤΥΓΖΡΓΠΥΓΥ 5ΧΝΧΤΚΓΥΧΠΦ∆ΓΠΓΗΚςΥ 5ςΧΗΗΓΖΡΓΠΥΓΥ 2ΘΥςΧΙΓ 2ΤΓΟΚΥΓΥΕΘΥςΥ 1ΗΗΚΕΓ 6ΓΝΓΡϑΘΠΓΧΠΦΗΧΖ .ΓΙΧΝ #ΩΦΚς ∃ΧΦΦΓ∆ςΥ #ΟΘΤςΚ∴ΧςΚΘΠ
5ΓΓΠΘςΓΥςΘςϑΓΗΚΠΧΠΕΚΧΝΥςΧςΓΟΓΠςΥ2ΧΙΓ
BFO ANNUAL REPORT 2019 I 79
2019 Preliminary Budget
80 I BFO ANNUAL REPORT 2019
2019INCOME BUDGET
Check-off IncomeLicense Fees (Gross) 3,900,000$ Less:Other Provinces' License Fees 212,000CCA Membership Fee 465,000 CCA Legal Assessment 28,000 National Check-off 922,000
Returned to Ontario 455,400Commissions 51,000 Seven Day Dealer Refund 190,000 NET CHECK-OFF INCOME 2,487,400$
Other IncomeInterest/Investment Income 80,000$ Toronto Stockyards Land and Development Board 1,127,100 Lease Revenue 17,000 Brand Registration 200 SUBTOTAL 1,224,300$
TOTAL NET INCOME 3,711,700$
EXPENSESAdministrative & GeneralElected Officers Remuneration 195,000$ Elected Officers Expenses 185,000 Net Salaries and Benefits 1,030,000 Staff Expenses 60,000 Staff Training 6,000 Postage 18,000 Premise Costs 65,000 Office Supplies/Equipment Rentals 60,000 Telecommunications 33,000 Legal 10,000 Insurance 35,000 Audit & Accounting Services 16,000 Amortization 16,000 SUBTOTAL 1,729,000$
2019BUDGET
Association ActivitiesMemberships 87,102$ Sponsorships 60,050 County/District Grants and Sharecost 150,000 Miscellaneous Grants 5,000 Communications
Producer Engagement 75,000 Consumer Engagement 270,000 Ontario Beef Magazine (Net) 80,000 Other 50,000
Tradeshows 10,000 Annual Meeting Hotel and Voting Delegates 220,000 Lobbying Expense 160,000 License Fee Enforcement 116,000 Miscellaneous 10,000 SUBTOTAL 1,293,152$
IndustryIndustry Development, Market Development, VBP+ 340,000$ Research Projects 100,000 Ontario Corn Fed Beef Support 460,000 Ontario Beef Breeder Program Support 2,000
Feedlot/Cow-Calf/Government Relations Committees 5,000
SUBTOTAL 907,000$
TOTAL OPERATING EXPENSES 3,929,152$
PROJECTS
Elora Research Centre -$
Market Development 338,000 SUBTOTAL 338,000$
GAIN /LOSS ON OPERATIONS (555,452)$
EXPENSES - CONTINUED
BFO ANNUAL REPORT 2019 I 81
In Memory of Garnet Toms
A life deeply rooted, lives and grows in memory.
BFO Director 2014 - 2018
1.866.370.2333www.ontariobeef.com
www.makeitontariobeef.cawww.beefnorth.com
/Beef Farmers of Ontario
@OntarioBeef @BeefNorth @OntBeef
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/OntarioBeef
@beeffarmersofon @ontbeef