By Jen Snively, OCA Policy Advisor

MARKET DEVELOPMENT PARTNERSHIP PROGRAM

The Market Development Partnership Program (MDPP) is Phase Two of the CORD IV-funded Regional Marketing Initiative to support Ontario beef producers and processors with a regional/local marketing process that will assist them in developing their gate to plate, value chain strategy, and provide them with options in the marketing of their products. Funding for the 2007 projects was provided by the provincial government in their commitment to promote Ontario beef products. The priorities of the Program include:

• Supporting projects related to beef production and marketing including fed, OTM and dairy culls

• Supporting marketing initiatives directed at domestic markets only, not export initiatives

• Supporting projects that focus on increasing carcass values

The OCA Market Development Committee is responsible for reviewing the projects and allocating funding. The 2007 Committee members were:

• John Newman, OCA Director

• Kim Sytsma, OCA Director

• John Baker, Beef Information Centre

• Laurie Nicol, Ontario Independent Meat Processors

• Jim Clark, Ontario Cattle Feeders Association

• Andy Rankin, Ontario Ministry of Agriculture, Food and Rural Affairs

In 2007, $170 498 was allocated to 9 projects. The project costs included feasibility studies, business plans, logo designs and promotional materials.

INDUSTRY DEVELOPMENT FUND

At the 2004 Queen’s Park Barbeque hosted by OCA, the Ontario Sheep Marketing Agency and Dairy Farmers of Ontario, the Ontario Minister of Agriculture, Food and Rural Affairs announced an investment of $7 million through the Mature Animal Abattoir Fund (MAAF) for operators of licensed abattoirs to expand the province’s capacity to slaughter cull animals. The Industry Developement Fund (IDF) is the result of several abattoirs fulfilling their obligations to repay a portion of the grants they received under the MAAF. OCA was established as the administrator of the IDF under the direction of the IDF Committee.

The 2007 IDF Committee members were:

• John Newman, OCA Director

• Debra Pretty-Straathof, Ontario Federation of Agriculture

• Ian Harrop, Dairy Farmers of Ontario

• Laurie Nicol, Ontario Independent Meat Processors

• Christine Wenger, Ontario Ministry of Agriculture, Food and Rural Affairs

• Rick Norkooli, Ontario Ministry of Agriculture, Food and Rural Affairs

The objective of the IDF is to fund initiatives taken between ruminant meat producers and Ontario abattoir/processor operators and/or other value chain partners to capitalize on regional or local markets and to help increase demand and create a competitive market for Ontario ruminants and ruminant meat products. The priorities of the program include:

• Supporting ruminant meat producer initiatives in conjunction with Ontario abattoirs and/or processors

• Setting forth long term plans for marketing meat in regional or local markets

• Increasing demand and competitiveness in Ontario’s market for ruminant meat products

• Supporting initiatives that help bring greater value directly to producers and Ontario abattoirs and/or processors

• Supporting initiatives that benefit the overall ruminant industry

In 2007, $297,620 was allocated to 9 projects. The project costs included capital expenses such as a knocking box, railing system and vacuum sealer as well as promotional materials, training resources and research on the processing industry in Ontario.

OMAFRA-OCA $4 MILLION MEMORANDUM OF AGREEMENT

In July, 2007, the Ontario Ministry of Agriculture, Food and Rural Affairs agreed to deliver $4 million to OCA to develop and deliver programs targeted to assist the Ontario beef industry adjust to the long term impacts on the markets caused by the BSE border closure. As per the Memorandum of Agreement with OMAFRA, the following objectives will be met in the delivery of the $4 million:

1. Infrastructure gaps will be addressed by increasing slaughter capacity by at least 1000 head per year thereby providing additional local marketing options (i.e. fresh and freezer beef retail sales) for beef cattle producers in under-serviced areas of Ontario. This objective has been allocated $1.1 million. The OCA Abattoir Expansion Program has been developed to satisfy this part of the agreement. A call for proposals was released in January 2008.

2. Five to ten producer/processor partnerships will be supported in their development of a gate to plate or value chain strategy at a provincial, regional or local level to develop markets for locally-raised beef resulting in product being sold that will be equivalent to at least 100 head of cattle annually. This objective has also been allocated $1.1 million. Of that $900,000 over three years has been allocated to the Ontario Corn-Fed Beef Program. Program development for the remaining $200,000 is currently in underway.

3. The number of age-verified calves in Ontario will be increased by 15% per year, thereby increasing product eligible for international markets by 50%. This objective has been allocated $1.1 million. The extension of the Market Access Program (MAP) will be unveiled at the 2008 OCA Annual General Meeting.

4. Information sharing between stakeholders will be improved by increasing the ability to capture Radio Frequency Identification (RFID) tag numbers in Ontario by 20% and increasing carcass data feedback to producers along the value chain by 100%. This objective has been allocated $700 000. In late 2007 the RFID Reader Program was developed to facilitate the reading of RFID tags for purposes of age verification and printing transport manifests. Auction markets, large feedlots, packers and cattle dealers are encouraged to apply. This program will provide funding to offset the cost of installing RFID readers and related hardware and software. Funding is allocated up to 25% of the total project cost for packers, and up to 50% of the total project cost for all other applicants.

Annual volume of cattle through each business will determine the extent of monies available. Funding is available on a first come, first served basis.