STRATHMORE, Alta. — Alberta Beef Producers is offering a compromise to get back the non-re-fundable checkoff.
A resolution calling for a non-refundable checkoff of $2 with a guarantee that 60 cents will be used for research and marketing efforts was passed at a producer zone meeting in Strathmore Oct. 22.
A similar resolution passed Oct. 26 at a zone meeting in Fort Macleod.
“None of that money would be used for our operations or policy advocacy,” said ABP manager Rich Smith.
A $3 levy is now collected on every animal sold in Alberta, with $2 retained in the province and $1 going to the national check-off agency. Producers have had the right to request a $2 rebate since 2010, and the once rich organization now struggles to meet commitments for research funding, marketing and education.
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About $2.5 million was refunded in the last year and 87 percent of that was to feedlot operators.
Smith said a non-refundable levy could solve the budget shortfall and a proposal that the province return to a former policy of non-refundable levies for all boards and commissions has been provided to the government.
The resolution in Strathmore also included a caveat saying the full checkoff should be raised to $5 per animal sold.
“Clearly we need to get more money and clearly there is money in the industry. It is time we stepped up to the plate,” said rancher Erik Butters of Cochrane.
“I prefer the option of making it non-refundable so there is no freeloaders, but if that doesn’t fly, put it up and see what happens,” he said.
Other producers agreed that more money is needed to support the activities to which the organization has committed.
“If you want to have any say on how the game is played, you have got to have some money to do it,” said Doug Wray of Irricana.
The added money could go to research such things as feed grains and forages or rebuild the $5 million trade advocacy fund, which helps pay costs when challenges occur. The trade challenge against the United States’ country-of-origin labelling law is an example.
The organization also wants to support research to benefit the prairie beef industry as well as further promote Alberta beef.
“We also think the Alberta beef brand is worthy of support,” Smith said.
“It is a consumer driven brand that has been around for a long time and it is a source of pride for our industry.”
More money is also needed at the national level to fund Canada Beef and the Beef Cattle Research Council.
Provincial organizations now submit $1 per animal sold to the national checkoff agency, although eastern provinces take back some of the money to fund their own projects. The four western provinces submit the entire amount.
Increasing the national checkoff to $2.50 per head has been proposed. It is calculated that Canada Beef would receive $1.45, research 50 cents, issues management 15 cents, administration eight cents and provincial allocations 32 cents.
“With our current level of industry funding, we are having trouble being competitive in the global market,” said Smith.
Less money on the table makes it increasingly difficult for the industry to match government grants. As well, governments seem to prefer quick results, but less money is available to pay researchers or their facilities.
“We have some situations where we are not able to take advantage in research initiatives or the marketing or research funding from government,” he said.
The federal government’s contribution to fund the beef science research cluster is expected to decrease in Growing Forward 3, so the industry will be expected to pay more.
The issue will be further debated at Alberta Beef Producers’ annual meeting in Calgary Dec. 7-9.
