Alberta’s richest commodity organization has slashed its budget to $5 million from $14 million.
Alberta Beef Producers reported income of $14.3 million for the fiscal year ending March 31, 2009, with almost $13.9 million of that coming from check-off funds. Total expenditures were $11 million.
The organization has approved a $5 million budget for next year.
The income shortfall is due to the upcoming loss of ABP’s mandatory checkoff of $3 per head sold, which will end in April.
The provincial government passed legislation in June that will end mandatory checkoffs for ABP, Alberta Pork, Alberta Lamb Producers and Alberta Potato Growers.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The $5 million in next year’s budget will come from ABP’s surplus funds and money from savings accounts such as its trade advocacy reserve fund.
ABP finance chair Doug Sawyer told the group’s annual meeting in Calgary Dec. 7-9 that its next budget will reflect an estimated 40 to 60 percent reduction in financing because of a refundable checkoff.
Net revenues collected after April 1, 2010, will be reserved for the 2011-12 fiscal year.
“We really don’t have a handle on how many producers will ask for their $3,” Sawyer said.
To manage the anticipated loss of income, ABP has slashed the budgets of every department and put on hold national commitments of $1 per animal sold.
“We will still continue to send in $1 of the $3 at some point,” he said.
“The money that will be sent to them in the next year will be money left over from the checkoff.”
Alberta provides about 60 percent of the funding for the Canada Beef Export Federation at $1.2 million, Beef Information Centre at $3 million and Canadian Cattlemen’s Association at $1.4 million. The Beef Cattle Research Council received $228,930.
“It is going to leave those organizations in somewhat of a limbo over financing and budgetary terms for the first part of the year until they see what money is coming,” Sawyer said.
Each provinces pays an assessment fee to maintain the Canadian Cattlemen’s Association, but Alberta has traditionally paid the greatest amount.
