RED DEER – A dispute over how the multimillion-dollar Alberta beef checkoff should be shared continues among cattle industry groups.
Last summer, an alliance formed among four beef groups with a business plan that included a refundable checkoff so producers could direct the levy to the organization of their choice.
The $3 mandatory checkoff is collected every time an animal is sold. That results in revenue of about $12 million, which is controlled by Alberta Beef Producers.
“We feel the status quo is not going to move the industry forward,” said Russ Pickett, past-president of the Western Stock Growers Association. The stock growers joined with the Alberta Cattle Feeders Association, Beef Initiative Group and Feeder Association of Alberta to form the industry alliance.
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The alliance is not meant to replace the ABP as the main industry organization, but members argue producers should be able to direct their money to the group that best represents their interests, said Pickett at the stock growers annual meeting Feb. 18 in Red Deer. The group passed a resolution to lobby the province for a refundable, transferable checkoff.
“The ABP has become further and further removed from the average producer,” said Ed Curry, who presented the motion.
“If we put a halter on the ABP, we might get better communications,” he said.
The stock growers rely mostly on membership fees and have an annual budget of about $73,000.
As chair of Alberta Beef Producers, Rick Burton knows there is a problem explaining to people what the organization is doing with their money.
“Our biggest shortcoming is a lack of clarity on what we do,” he said in an interview during the Alberta Beef Industry conference Feb. 19.
“We have fallen down in communication with producers.”
The dispute over the levy flares up periodically and has resulted in a court case, a plebiscite and resolutions to change from a mandatory fee to a refundable one. The mandatory aspect has always been upheld.
“This issue ebbs and flows. The more difficult the industry becomes economically, the more anxious we are to fault each other,” said Burton.
He said at a time when the industry needs unity, time is wasted on political infighting.
While the alliance has asked the government to step in, that is not necessary because the checkoff could be reformed by producer-elected delegates directed to make the change.
“Government needs to recognize if they want continued disenchantment and factions in the industry, the best way to do it is to intervene on this issue,” Burton said.
The money collected is spent on beef promotion, research programs and government lobbying. About one third is sent to a national check-off program to support the Beef Information Centre, Canada Beef Export Federation and the beef cattle research council.
The Canadian Cattlemen’s Association receives $1.5 million and the rest remains in Alberta for provincial programs.
