Saskatchewan elk producers will decide within the next few months whether to support a producer levy to fund research, promotional work and administrative activities provided by the Saskatchewan Elk Breeders Association.
Don Wasylyniuk, chair of SEBA’s business committee, told elk producers at the association’s annual general meeting that the association’s revenues have dropped roughly 50 percent over the past four years, falling to approximately $160,000 in 2002 from more than $320,000 in 1998.
To maintain services, SEBA requires annual revenue of nearly $230,000.
“With a levy, we know we would have a predictable level of funding ahead of time,” Wasylyniuk told producers at the SEBA conference held March 6-8 in Saskatoon.
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“Without the levy, SEBA could continue, but on a much reduced basis in terms of the promotion, research, marketing and government liaison services we provide.”
Under the levy proposal, every licensed elk producer in the province would be asked to pay an annual levy of $150. In addition, producers would pay a per head levy of $4.50 for each animal.
If approved, the levy would come into effect on Jan. 1, 2004. Provincial regulations would allow individual producers to request a refund each year.
There are approximately 400 elk producers in Saskatchewan, including about 240 registered SEBA members and about 160 non-members. Approximately 28,000 elk are raised on farms in the province.
The levy would generate revenue of about $186,000 a year.
SEBA’s proposal requires the approval of at least half the pro-vince’s elk producers, but Wasylyniuk said the association is hoping for more support.
“The majority of elk producers must endorse the plan,” he said.
“But having said that, 51 percent would not give us a clear mandate, so we are targeting a minimum of 60 percent of the producers in the province (to approve) the levy. Anything less than that and we would have to reassess our options.”
Elk producers are expected to receive a mailout ballot in May or June. The Saskatchewan Agri-Food Council will oversee the vote and the subsequent formation of a provincial elk producers commission that would be in charge of collecting the levy.
Glenda Elkow, chair of the recently formed Alberta Elk Commission, said a similar proposal approved in that province has allowed Alberta elk producers to expand promotional activities.
“It really comes down to what you as producers want to do,” Elkow told SEBA members.
“It might be a tough time right now to spend extra money, but it’s also probably a more important time.”
SEBA president Bob Kirkpatrick agreed that challenges facing the industry make the timing of a levy difficult.
“Yes, it’s tough to come up with the dollars, but it is a way to promote the industry that is fair to all producers,” he said.
“It would be very hard to keep an industry going without an association behind it and I believe that this levy is the one way that that can work in Saskatchewan.”
Kirkpatrick said approval of the levy and formation of a provincial commission could also lead to a reassessment of SEBA functions.
In Alberta, producers who approved a provincial levy also decided to wind down the Alberta Elk Association and fold its functions into the newly formed provincial commission.
Elkow said this consolidated promotional activities, avoided duplication of services and reduced administrative costs.
Wasylyniuk said forming a Saskatchewan commission would not automatically result in SEBA’s termination.
He said the association could continue to oversee promotional functions while the levy commission could collect and distribute funds.
“I think SEBA could operate as a parallel organization with the commission,” Wasylyniuk said.
“What we don’t want to see is two groups competing against the middle for the same dollar and the same purposes and goals.
“What may happen is that … if the membership so rules, there could simply be a vote to roll over the existing SEBA board and they could become the new directors of the commission, but that would be a vote of all the producers, not just the members of SEBA.”
