When
sitting down to write a report such as this – one that should
reflect upon the events of the last 12 months - it is difficult to
know where to begin. We are just now emerging from the most
difficult time we have experienced as beef producers. For the last
two and a half years, the BSE crisis has overshadowed many of the
other issues and challenges we already faced as an industry,
forcing us to evaluate the way we do things and where we are
going.
The crisis is not yet fully behind us – some
export markets remain closed and R-CALF continues to promote its
protectionist views. But, it is safe to say that the Canadian beef
industry has come a long way from that dark day in May 2003. It
has been an incredible roller coaster ride, where we have seen
positive news followed by disappointing setbacks. As we approach
the 3rd anniversary of BSE, Canada, once again, is the world’s 3rd
largest beef exporting nation. Canadian imports of beef are down,
consumption has increased and our packing plant capacity is at a
level where we are now in a position to have more control over our
destiny. These are all remarkable feats, considering what we have
been through.
As you review this year’s Annual Report, you will
read about the issues and challenges that the Ontario Cattlemen’s
Association and its related industry organizations faced in 2005.
You will also read about our accomplishments and successes.
The chosen theme of this year’s Annual Report is
Strength in Numbers. At this pivotal point in our destiny,
strength, in the form of partnerships, and in the size of our
membership will be crucial to our success. But we also hope to see
Strength in Numbers, in the form of increased profitability at the
grass root level, as we regain lost markets and move to create new
ones. Finally, Strength in Numbers signifies that we are extremely
lucky to have 12 million loyal Ontario consumers who have never
doubted the safety of our product, and who showed their support at
the meat counter throughout the
BSE crisis. We must never take that delicate relationship for
granted. Ontario beef products are also exported to the eastern
seaboard of the US, where there are about 130 million customers
within a 24 hour truck-ride.
As well, this year, your Board continued to work
in many areas to help achieve Strength in Numbers – a healthier
bottom line for all sectors of our industry. I would like to
briefly highlight several areas in which your OCA Board and staff
was heavily involved, in 2005:
-
OCA has been actively involved in safety net
issues. We have been one of the most active groups when it comes
to recommending improvements to the CAIS program.
-
OCA, along with other livestock groups, has
lobbied effectively to ensure that the regulations under the
Nutrient Management act are fair and based on science and risk.
OCA will monitor the development of the Source Water Protection
Act.
-
OCA, along with the end users of corn, is
concerned about the negative impact a tariff on US corn imports
would have on our feeding industry. OCA will continue to represent
beef producers on this issue.
-
OCA has developed a strategic plan after
consultation with the Board, Advisory Council and County
Associations. There will be an increased focus on meeting the
needs of our customer, which is the Ontario beef producer.
-
OCA also continued to work on changes to the BCMA.
The BSE crisis has changed our industry forever.
We have a unique opportunity to add value to our cattle with our
ability to age-verify. Japan is requiring cattle to be ageverified
and we are very hopeful that in the near future, age verification
will override dentition at Canadian plants. This is a huge
opportunity for us and one that we must take advantage of
immediately.
We also must take advantage of the market in which
we live. Along with the strong consumer base we already enjoy, we
must remember that Ontario sees a massive influx of immigrants
from all over the world each year. That is an unprecedented
opportunity to explore niche markets as new cultures, customs and
traditions settle in this great province of ours.
While beef suffered consumption setbacks with the
advent of low protein diets, our industry is beginning to see more
opportunity as Canadians turn to the health benefits of beef, once
again. This shift in consumer attitudes is making it easier to
promote the nutrition advantages of beef, and it’s
an opportunity we should take advantage of – especially in
conjunction with the government of Ontario’s promotion of healthy
food and lifestyles. Beef is an excellent source of high-quality
protein and zinc, the best source of ready-to-use iron and 10
other essential vitamins and minerals. The
health marketing opportunities are enormous and the Beef
Information Centre is already hard at work to promote that.
But promotion of our product among consumers is
only one half of the equation. We also need to ensure that
government supports our industry. Since May of 2003 it has become
evident that OCA needs to augment our lobbying efforts. While it
is hard to measure success in a venture such as this, it is
critical that we have a good working relationship with our
politicians. Through events such as our Queen’s Park barbecue,
participation in the Ontario Trade Mission to China, creating a
grassroots government relations team, and introducing our new
government relations newsletter, the Ontario Steakholder, we are
focusing more on our government relations efforts and seeking to
dramatically improve OCA’s profile at the government level.
Consistent lobbying is the only way to achieve our industry goals,
and our mission is to make “OCA” a household acronym within
Queen’s Park.
The Hong Kong round of WTO negotiations taught us
that there is much to be done in terms of protecting the interests
of the beef industry, and to do that, we must engage the attention
of our political representatives.
On another note, last year, the Better Beef plant
in Guelph was purchased by Cargill Meat Solutions. While some may
see this as a threat, due to decreased competition, the OCA Board
and Advisory Council see it as a great opportunity for the
industry in Ontario to grow. Cargill, with worldwide
marketing resources, will allow Ontario producers to have
additional options when it comes to marketing their cattle.
Their huge financial commitment shows us that they
definitely see an opportunity in Ontario. We are pleased that
Cargill has made a pledge to consult the OCA on issues before
moving ahead, and thus far we have seen a strong and open
relationship. Your Board believes that this relationship can only
get stronger and that the purchase bodes well for the future of
the entire Ontario cattle industry.
Over the last two plus years, we have seen more
than our share of difficulties. I am reminded of a quote by Albert
Einstein, one of the great minds of our time. He said “in the
middle of difficulty lies opportunity”. While we do have bumps and
bruises, we have come through our difficulties. Yes, there will be
challenges ahead, but there are also opportunities. As Einstein
did over a century ago, Ontario beef producers must use this
occasion and seize the opportunities that lie ahead of us in 2006.
I am confident that we, as an industry, can do that, because there
is Strength in Numbers.
In closing, I would like to thank my fellow
Directors for a job well done in 2005 and to recognize the hard
work and professionalism provided by OCA’s Executive Director,
Dave Stewart, and his skilled and dedicated staff. I also wish to
recognize the contribution made by OCA’s Advisory Councillors,
whose ideas and suggestions throughout the year provided useful
input into the Board’s decision-making
process.
And, of course, I sincerely thank Ontario’s county
cattlemen’s associations and the producers they represent for
their cooperation and input of resolutions throughout a very
demanding year.
It is a great privilege to have been given the
opportunity to serve as President of your Association in 2005.
Ian McKillop
President
Ontario Cattlemen’s Association
|
