Three Canadian beef organizations will be rolled into one if a proposal put forward last week by the Canada Beef Working Group is accepted.
The Canadian Beef Export Federation (CBEF), Beef Information Centre (BIC) and the Canadian Beef Cattle Research, Market Development and Promotion Agency, commonly called the national check-off agency, would be combined into an entity called Canada Beef.
The single, independent beef cattle marketing and promotion agency would be designed to be more efficient, economical and effective than the existing array of groups, said beef working group co-chair Brad Wildeman. It is also expected to provide better accountability and reporting to various beef industry factions that have been critical of how check-off money is spent.
Read Also
Agriculture ministers agree to AgriStability changes
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 CBWG has been investigating the new structure for five months and tabled its report and recommendations Jan. 6. If all goes according to plan, Canada Beef could be established by late June, said Wildeman.
CBEF, BIC and check-off agency executives will now consider the recommendations and decide whether to seek approval from their respective memberships.
“We are asking them to move as quickly as possible,” said Wildeman.
Representatives from each of those agencies were members of the CBWG, as were representatives from the Canadian Cattlemen’s Association, cattle feeder organizations and meat packers.
“Anytime that you are looking at trying to put organizations together, there’s going to be difficulties,” Wildeman said, adding that unanimity will be important.
Jack Hextall, chair of the Saskatchewan Cattlemen’s Association, said Jan. 6 that the proposal already has unanimous support from cattle organizations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Prince Edward Island. Those groups plan to seek approval among their respective memberships.
The CBWG report estimates the amalgamation of CBEF, BIC and the check-off agency would save $1.3 million annually. Most of those savings, $848,000, would be realized in salaries, with the equivalent of 11 fewer positions among the three organizations, and through an estimated $277,000 in savings on administration.
Cost savings are particularly important because reduced cattle marketings have reduced check-off totals, leaving CBEF, BIC and the check-off agency uncertain about annual revenues.
As well, the Legacy Fund, a 10-year, $80 million fund established in 2005 by the Alberta and federal governments for market development, will soon expire.
The report recommends continuation of all programs and services now undertaken by the three agencies.
Research will continue to be done by the Beef Cattle Research Council. However, Canada Beef would not play a role in policy development.
CBWG member Ben Thorlakson, representing CBEF, said international offices would continue to gather intelligence on market needs and desires but “the difference would be that Canada Beef would act as an intelligence gathering facility rather than policy development.”
Policy will be a matter for the CCA, provincial cattle groups and cattle feeders associations to develop, Thorlakson said.
Canada Beef would essentially be a restructured national check-off agency with a board of at least 12 members. Eight would be primary cattle producers, according to the proposal, and another four would represent processors, exporters and importers.
Canada Beef would be headed by a president and chief executive officer. Wildeman said a recruitment strategy for that position will be decided later, but it could be a person already within CBEF, BIC or the check-off agency.
“We think highly of the staff that we have,” he said.
REPORT SUMMARY
•Create a single independent national beef cattle marketing, promotion and research organization by merging and integrating CBEF, BIC and the check-off agency
•Maintain all programs now offered by CBEF and BIC
•Initially use the same annual report procedure employed by the national check-off agency, and regularly review reporting methods so they are responsive to stakeholder needs
•Establish an international beef trade policy advisory committee to gather information on issues that affect beef, veal and related byproducts and make policy recommendations to other organizations
•Dissolve the Global Marketing Advisory Committee and allocate Legacy Fund money to Canada Beef, the Canadian Beef Breeds Council and Alberta programs included in the fund agreement
BIC current services
•Consumer, market and food safety research
•Consumer marketing services
•Recipe development assistance
•Consumer education
•Education courses
•Consumer inquiries
•Monitoring nutrition, food safety and trade policy
CBEF current services
•Access to international offices in Japan, South Korea, Taiwan, Hong Kong, China and Mexico
•Information gathering on competition, pricing and product quality
•Support to penetrate export markets other than the U.S.
•Industry updates on BSE issues
•Newsletters and communication
•VIP beef awareness missions and international trade shows
•Trade advocacy and policy
