By Jen Snively, OCA Policy Advisor
 

Market Development Committee Members: Gord Hardy, OCA Rick Hobbs, OCA John Baker, Beef Information Centre Laurie Nichol, Ontario Independent Meat Processors Jim Clark, Ontario Cattle Feeders’ Association Andy Rankin/Shana Barker, Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) The 2008 activities of the Market Development Committee were funded by the OCA-OMAFRA $4 million Memorandum of Agreement.

The Committee decided to administer the Market Development Partnership Program (MDPP) again in 2008. The MDPP is phase two of the OCA Regional Marketing Initiative which supports Ontario beef producers and processors in developing their gate to plate, value chain strategy, and provides them with options in the marketing of their 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

• • Funding will not be granted to projects that claim their niche beef product is healthier or safer than conventional beef

The committee followed a Request for Proposals process that resulted in a submission of 12 letters of intent. The committee requested 11 full proposals from the applicants that met the 2008 priority areas. Of these 11, the committee allocated $179,581.85 to ten projects. One applicant did not submit a full proposal. Eligible project costs included marketing studies, point of sale marketing material, Web site and logo/brand design, farm gate signs, advertising brochures/ flyers, and some capital costs.

The Market Development Committee also allocated $5,000 to the World’s Longest Barbecue. The OCA Board of Directors approved the allocation, making OCA the Platinum sponsor of the event in 2008.

OCA-OMAFRA $4 Million Memorandum of Agreement In July of 2007, OMAFRA agreed to deliver $4 million to OCA to develop and deliver programs targeted to assist the Ontario beef industry to 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 was allocated $1.1 million. The OCA Abattoir Expansion Program was developed to satisfy this part of the agreement and a request for proposals was released in January 2008. The OCA Abattoir Expansion Program Committee was struck in mid-2008 to review applications to the program. Three applicants were successful in obtaining funding. More details will be shared as the projects progress.

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 was allocated $1.1 million. As well, $900,000 over three years has been allocated to the Ontario Corn-Fed Beef Program. The remainder was allocated to the OCA Market Development Committee to fund projects under such programs as the MDPP.

3. The number of age-verified calves in Ontario will be increased by 15% per year for 3 years, thereby increasing product eligible for international markets by 50%. This objective was allocated $1.1 million. The OCA Age Verification Program was unveiled at the 2008 OCA Annual General Meeting. Producers who age-verify 2008 and 2009
calves can apply to receive $5 per head. Age-verified 2007 calves were eligible to receive $3 per head. Program criteria include: age verification, attendance at a Verified Beef Production workshop, and a verifiable vaccination protocol implemented on-farm. This program is well on its way to meeting the above objective. It is expected that funding will be exhausted by December 31, 2009.

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 was allocated $700,000. In late 2007, the RFID Reader Program was developed to facilitate the reading of RFID tags for purposes of identifying age-verified cattle and printing transport manifests. Auction markets, large feedlots, packers and licensed cattle dealers were encouraged to apply. This program provided funding to offset the cost of installing RFID readers and related hardware and software.

In July 2008, the OCA Board of Directors approved a re-allocation of $300,000 from the RFID Reader Program to Beef Improvement Ontario (BIO) to develop an information technology infrastructure, database, and software programming for value chain development and implementation. With most auction facilities, licensed dealers, and the large packing plants now capable of processing RFID information, and with information flow up and down value chains, due to BIO’s involvement, the objective will be easily exceeded.