Cattle producers in Canada will all be paying $2.50 per head for that country’s beef checkoff program within a few months, an increase of $1.50 over the previous amount. Much like the National Beef Checkoff in the United States, the program administered by our neighbors to the north is used primarily for marketing, research and issues management.
Tayla Fraser, manager of partner engagement for the Canadian Beef Check-off Agency, explained that the Canadian Beef Cattle Check-Off is administered by the Canadian Beef Cattle Research, Market Development and Promotion Agency, which goes by the operating name “Canadian Beef Check-Off Agency.” Within the agency, is a separate and distinct division that invests the marketing funds. This division goes by the operating name “Canada Beef.”
The Canadian Beef Check-Off Agency administers the collection, remittance and allocation of check-off dollars. How the funds are invested (allocated) is determined by each provincial association, which can decide what percentage of the check-off dollars they remit will be allocated to the three areas mentioned above. Fraser explained that the increased check-off is being implemented to ensure that the goals of the National Beef Strategy—to increase beef demand, productivity and industry connectivity, and reduce cost disadvantages to main competitors—are achieved.
The strategy document was developed by all of the provincial cattle associations in partnership with five national beef organizations. Those partner organizations include: Beef Cattle Research Council; Canada Beef; Canadian Beef Breeds Council; Canadian Cattlemen’s Association; and National Cattle Feeders’ Association.
The check-off increase was not implemented nationwide at one time, but is happening on a province-by-province basis. Fraser explained that each province has a unique process to undergo relating to their provincial legislation to trigger an increase. An increase also has to be approved by the grassroots producers before any regulatory changes are undertaken. She said this generally comes in the form of a resolution to approve the increase at the provincial cattle association’s annual general meeting, at which producers are able to have their voices heard.
Two provinces have already increased the check-off and others are expected to be on board by the summer of 2018.
The national check-off, which hasn’t changed in 20 years, currently generates about $7.5 million annually. In terms of buying power, since implemented in the 1990s, the initial $1 is now worth about 70 cents, according to Melinda German, general manager of the check-off agency.
“The vast majority of Canada’s beef producers are moving forward with the increase and driving positive forward momentum. We hope this momentum will carry forward with those provinces yet to determine an increase date,” Fraser said.
Producers also pay a separate provincial check-off which ranges from $3 to $6 depending on location, and in some areas the levy is refundable. Fraser told WLJ, “Most provinces include their own provincial check-off in the levy, and that amount is based on the needs of the provincial association. The additional provincial amount, over and above the national levy, is generally used for provincial advocacy, policy, and trade initiatives driven by the province, or by the Canadian Cattlemen’s Association. Some of these funds also go towards provincially driven marketing and research programs.”
Similar to how the beef checkoff in the United States works, Canada Beef contracts with approved organizations to carry out the work. Fraser explained, “We hold service agreements with each of the service providers that detail the partnership. Currently, research is contracted to the Beef Cattle Research Council, market development and promotion to Canada Beef, and issues management, as a part of promotion, is contracted to the Issues Management Team at the Canadian Cattlemen’s Association.
Of course, producer input and support is necessary to make programs like this truly effective. Tim Oleksyn, who ranches near Prince Albert, Saskatchewan, told WLJ he is very supportive of the Canadian Beef Check-off. In fact, he has been a advocate of the program, talking with producers in all segments of the beef cattle industry to explain the importance of the increased fee.
As mentioned, some of the check-off is refundable, but Oleksyn said very few producers have requested refunds, saying, “They understand the investment aspect that those check-off dollars go into, where it goes.”
Fraser said that between 2011 and 2014, it was determined that the Canadian Beef Cattle Check-Off brought producers $14 in benefits for every $1 in investment. This was up from 9:1 in 2005-2008.
Like the U.S. beef checkoff, the program in Canada is not without opposition, which is why Oleksyn said his advocacy is important. “That’s the value of me reaching out, even having that conversation. It is really important for these dollars to be invested into the industry.”
He went on to say that wherever people who raise cattle fall in the National Beef Strategic Plan, they need to realize this is their investment in the industry. “But honestly, it is more than that,” he said, “Who doesn’t buy back and give back to their own operations to have the benefit from research to marketing and development?”
Oleksyn said the starting point of the program is really in the research, which helps with the development of marketing and trade policy. Additionally, the industry benefits from connectivity with consumers, increasing competitiveness in beef demand. “We all win,” he said. “Then there is an increase in productivity.”
Canadian agriculture, also like that in the United States, is facing an aging demographic. Oleksyn believes the check-off can also help in this area. “The investment of the check-off dollars really helps build that business plan for the industry, and that is really critical,” he said. — Rae Price, WLJ editor
