The Alberta government’s decision to allow producers to request refunds on the beef checkoff threatens a national checkoff for imported cattle, says the president of the Canadian Cattlemen’s Association.
Brad Wildeman said all provincial beef organizations must approve a plan to charge a checkoff on imported cattle that would raise $3 million a year. The CCA was waiting for two maritime provinces to make the necessary changes before implementing the program.
“It (Alberta’s decision) puts the entire program in jeopardy.”
Wildeman said changing from a mandatory non-refundable check-off to a refundable one will affect CCA programs such as the Beef Information Centre and the Canadian Beef Export Federation.
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While other provinces have a refundable checkoff, the national portion is mandatory. However, Alberta proposes to make the entire checkoff refundable.
Former CCA president Hugh Lynch Staunton said many industry and government officials don’t realize the work required behind the scenes to keep beef moving. He also said there was an understanding that money for research and promotion shouldn’t be touched.
“When it was set up, it was assumed that things clearly for the good of the industry shouldn’t be political and were sacred.”
A great deal of money was spent on legal fees during the last countervail challenge by U.S. cattle groups and R-CALF court cases related to BSE.
“I shudder to think what would have happened if the industry couldn’t spend that money when it was necessary,” Lynch Staunton said.
Larry Sears, a former Canada Beef Export Federation chair, said there are concerns over the viability of the national organization’s marketing arms and where their income is going to come from.
“Having an income that is pretty static and predictable is pretty important both for BIC and CBEF,” he said.
“They’re the key ones that need to be funded, and I expect the people pushing for this will recognize this and come through in a pinch.”
Sears said he hopes government and industry officials are negotiating changes to the legislation to allow the national portion of the checkoff to be non-refundable.
“I expect that is trying to be negotiated now. I don’t know how successful it will be. The people lobbying to get the whole thing refundable have been very effective. I don’t know how realistic it is to expect the government to turn around and navigate in a different direction.”
