EDMONTON – Alberta Beef Producers is launching a loyalty rewards program in an effort to dissuade cattle producers from requesting a check-off refund.The provincial government changed commodity group checkoffs to refundable from mandatory earlier this year, raising fears about revenue shortfalls.ABP general manager Rich Smith told the group’s recent semi-annual meeting that a loyalty rewards program is one way the provincial cattle organization can demonstrate to producers that their check-off money has a value to their bottom line.All cattle producers will receive loyalty cards during the first year of the program, which they can use to receive discounts from selected farm-related businesses. Producers who don’t request a refund during the first year will receive a sticker to attach to their card, allowing them to continue receiving the discounts the following year.Ben Graham, vice-president of AdFarm, the advertising agency hired to develop the loyalty rewards program, said initial discussions with livestock, farm supply and fuel retailers about offering discounts are promising.A two percent discount on fuel may add up to savings of $500 per year, he added.AdFarm is also talking to vehicle and farm equipment dealers, insurance companies for group life, extended health and dental insurance, pasture and crop protection product companies and those that offer fertilizer, tires and auto parts.“It’s an opportunity to increase your buying power by leveraging fellow producers,” Graham said.Not all producers were keen on the idea.ABP finance chair Dave Solverson said he has mixed feelings about the program.“I’m worried about stretching our resources to provide the service,” he said.Graham said he hoped the program would pay for itself within two years by charging suppliers a fee for having access to the province’s 27,000 beef producers.Danny Hozack, a newly elected Canadian Cattlemen’s Association director, said he thought the loyalty rewards program was taking ABP away from its main focus of looking after cattle producers.“I think we’re on the wrong track,” he said. “We should be lobbying the government to ensure the health and viability of FCC (Farm Credit Canada).”He said ensuring the viability of a strong agricultural bank that offers low interest rates is more beneficial than receiving a few dollars off the price of tractor tires.Hozack said retaining a loyalty rewards program would encourage producers to bypass local businesses and shop at the larger retail centres.Graham said the goal of the program was not to alienate local businesses but to use the power of numbers to help farmers obtain better prices for their supplies.He also said there is no obligation to use the discount card.“It’s your choice as a member. I don’t see the negative,” he said.
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