For Ontario beef producers, 2007 will be a year that many would rather forget. A combination of factors, including government regulations, a rising Canadian dollar, lack of access to key markets and high input costs forced many producers to question their future in the beef industry.

Yet even in the face of the challenges that we endured in 2007, there were significant achievements in a number of areas. Once again, the hard work and professionalism of your OCA Board of Directors and staff was realized with a couple of funding announcements. In September, the Ministry of Agriculture, Food and Rural Affairs announced a $4 million grant to OCA. The Board decided that this money should be directed towards the following initiatives: an electronic tag reader program, age verification, abattoir expansion in Northern and  Eastern Ontario and market development projects involving Ontario beef.

In December, OCA was very pleased with the Provincial government announcement that Ontario beef producers would be receiving $40 million to partially offset financial losses incurred in the second half of the year.

Last year also saw the implementation of Rule #2. After a number of false starts, beef from cattle over-thirty-months of age (OTM) and cattle born after March 1st, 1999 were allowed to be exported as of November 19th. While the impact of this opening has been somewhat negated by the higher dollar and other competitive issues, it nevertheless brings us one step closer to pre-BSE trade and sets the stage for other countries to follow the US lead. Also, on November 26th, the deadline expired for R-CALF to appeal to the US Supreme Court (on its failed attempt to get a permanent injunction against the first USDA rule to allow younger cattle to enter the US in July 2005). With the passing of this deadline, the litigation on Rule #1 is officially concluded.

As we head into 2008, we continue to face a number of challenges that put us at a competitive disadvantage and negatively impact us, financially. Along with the challenges of 2007, a major issue that we face in 2008 is the likely implementation of mandatory Country of Origin Labeling (COOL) in the United States. This will negatively impact the price of Canadian cattle and beef and our ability to export live cattle and beef to that country.

With the additional paperwork and segregation required on the part of US retailers and packers, it is very likely that some will choose to source only US product, or they will source Canadian product at a lower price.

Even with numerous lobbying trips to Ottawa by both OCAand CCA, the federal government has not stepped up to the plate to provide relief during the current financial crisis. We will continue to lobby the government on this issue, as well as recommending changes to the CAIS program to make it more effective. OCA will also be developing a risk management program that would help to erase some of the volatility in the market place, as well as put us on a more competitive footing with neighbouring jurisdictions.

Despite the ever-present challenges that we face, there are a number of advantages that we in Ontario have that we must capitalize on.

Among these are: a large consumer base made up of people who are increasingly becoming more interested in where their food comes from and who are more willing to buy local. With the Ontario Corn-fed Beef program gaining a foothold in the Loblaws chain as well as recognition under the Foodland Ontario banner, a terrific opportunity has been created for Ontario producers to take advantage of the “buy local” trend. We can also take pride in the fact that we produce a high-quality, safe, nutritious product within a regulatory system that is respected world-wide.

As we face another year, there is no doubt that the industry is changing and if we want to survive then we had better be on board and be willing to adapt. It is critical that cattle be age-verified. The industry will have to live with the OTM issue for the foreseeable future and the easiest, most cost effective way to age-verify cattle is by using CCIA tags.

One of the key elements in OCA’s 10 year-vision was the creation of vertical alliances and increased information flow across sectors - including the processing sector.

With this information available, all producers should be able to make better management decisions that will result in efficiencies and more profit. We have seen some real success stories with groups like the Bluewater Black and the Bruce Peninsula Calf Clubs that we need to learn from and duplicate in other areas of the province.

Other initiatives such as vaccination protocols, the Verified Beef Production-Quality Starts Here program and proper genetic selection need to be adapted on a broader scale as well. Ontario can be a leader in the beef industry, but it will take a commitment from each individual producer to make it happen. As Darwin said “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”. In closing, I would like to thank my fellow Directors for a job well done in 2007, and to recognize the hard work, dedication and professionalism provided by OCA’s Executive Director, Dave Stewart, and his staff. I would also like to recognize the contribution made by OCA Advisory Councillors and county association officers.

The dedication of grassroots volunteers is the foundation upon which OCA is built, and I commend all those who fill positions within their counties. Also, thanks to the delegates who take time away from their operations to be here in Toronto to participate in this important part of the democratic process.

At this time, I feel it’s important to recognize three dedicated individuals who held important leadership roles within OCA, and who are no longer with us. Darrin Frew, President of Oxford Cattlemen’s Association, Rodney McLaren, Advisory Councillor from Prescott county and Francis Purdy, President of the Ottawa Valley Feeder Finance Co-op, each passed away suddenly in 2007. These three individuals were dedicated and well-respected leaders within their organizations and their loss will be felt by many, including each of us who knew them through OCA.

As I end my term as OCA President and Director I would also like to thank all those former Directors, Advisory Councillors, producers and staff that I have had the opportunity to work with over the last 10 years. The past decade has been an incredible journey filled with remarkable people, challenges, opportunities, frustrations, disappointments, achievements, long days, long nights and…fun.

The industry has been through a very traumatic time in the recent past and I feel that WE have accomplished a lot. OCA is more than an individual. It is a group of people, Board members, Advisory Councillors, delegates, staff and industry partners all pulling together to build a better Ontario beef industry. Each segment of our industry needs the other segments in order to be successful. Like a chair missing a leg, a beef industry without the feedlot, cow/calf or packer fectors is going to be like that chair and fall over. I would encourage the next Board to continue to build alliances across the entire industry. By working together, I believe we WILL build a strong and viable beef industry in Ontario. We WILL meet our challenges and we WILL succeed.

It has been a pleasure to serve as your President.

Ian McKillop
President
Ontario Cattlemen’s Association