Annual Meeting Coverage

Annual meeting coverage from Nova Scotia, Manitoba and British Columbia.

Supply management threatened at WTO

By Dan Woolley

Nova Scotia egg and chicken farmers have been warned to expect the worse for supply management out of the current round of World Trade Organization negotiations.

Dave Fuller, Chicken Farmers of Canada President, told the Chicken Producers Association of Nova Scotia annual meeting: "Do I believe there will be a deal? Absolutely:the question is when."

Fuller then added the caveat: "This deal will not be good for supply management. What you need to know that is the text (of the draft WTO agreement), if it was approved today, would be the end of supply management in Canada."
At the Nova Scotia Egg Producers annual meeting, Maurice Richard, the Canadian Egg Marketing Agency’s second vice-chairman, declared that the supply managed industries face big hurdles at the WTO talks over market access and over-quota tariffs. "The exporters have got what they want; but the supply-managed haven’t got what they want to protect our industries."

Richard added: " The politicians need our support," and, "Ritz (the federal agriculture minister) needs tools to protect against export surges because in 10 years Article 11 will be abolished."

He expected a possible agreement by WTO member nation trade ministers as early as the end of 2008, warning, "We have to be ready for whatever will come."

Willy Versteeg, Nova Scotia Federation of Agriculture president, a supply-managed dairy farmer, told the egg producers, "The industry will have to change. We are looking at 25 to 45-percent cuts in over-quota tariffs in the sensitive products category.

"There are a lot of eyes on our market. If anyone should have access to our market; it should be us."

Versteeg, who sits on NSFA’s trade committee, said supply managed sectors because of the WTO negotiations, are also looking at a 70-percent cut in non-sensitive category tariffs and an expansion in the tariff rate quotas (TRQs), "which means increased market access for foreign competition."

Fuller observed Canada is not the only country with sensitive issues on the negotiating table.

He expected the trade ministers of the WTO countries will sign off on the final WTO text early next year, after which it would be implemented over the next five years.

He expressed his great confidence that Canada’s chief negotiator for agriculture, Steve Verheul, will get "the key areas needed for supply management."

Fuller also noted the strong commitment from the federal government and Agriculture Minister Gerry Ritz, who has made it clear, in a couple of cases. to Crawford Falconer, the WTO agriculture negotiations committee chairman, Canada’s displeasure with the negotiations.

He noted, however, one of the five national chairman of the national supply-managed industries is always in Geneva monitoring the WTO negotiations. He stated: "I am confident, if we continue to work together, from the gate to the plate, producers and politicians, we will continue to have a viable chicken industry in Canada."

N.S. Turkey Producers Marketing Board Annual Meeting

Nova Scotia Agriculture Minister Brooke Taylor, centre, congratulated Nova Scotia turkey producer Mark Davies, left, in serving his first term as chairman of the Canadian Turkey Marketing Agency, at the annual meeting of the Nova Scotia Turkey Producers’ Marketing Board. At right is board chairman David Young.

By Al Kingsbury

Nova Scotia turkey producers enjoyed “another positive year, not without challenges, but for the most part more successes than setbacks,” David Young, chairman of the Nova Scotia Turkey Producers’ Marketing Board, reported to the board’s 37th annual meeting in Canning.

“The new allocation policy generated a substantial increase in production for Nova Scotia producers, something not seen for many years,” he said. “This sharp increase in production across Canada has entered the marketplace with very little disruptive effects to date. At the same time, producer returns have not deteriorated but have actually improved slightly.”

But Young cautioned his members that they need to work closely with their processor to ensure that these increased numbers are in the size, quantity, and quality that will help maintain a strong and vibrant marketplace for all.

He noted that the Poultry Emergency Response Planning Committee continues to be active in developing and refining the steps that will take place in the case of a disease outbreak within the province.

The committee has had several mock scenarios or table-top exercises to test the effectiveness of the plan, which has proven beneficial by highlighting areas that need to be addressed, he said. “The industry needs to be prepared for any situation that may arise.”

The chairman said all programs, such as food safety or bio-security issues, are beneficial to producers but need to remain user-friendly.

“These programs have taken on a life of their own and have a tendency to intimidate the user. . . . So, as producers, we need to remain involved in the process to ensure that these programs, as they unfold, are made with a commonsense viewpoint in mind. We need to impress upon society that the costs associated with the maintenance of these programs cannot be borne totally by the producers and that the costs need to be passed on,” he said.

Brooke Taylor, Nova Scotia’s minister of agriculture and marketing, told producers his government shares the concern of turkey producers in the ongoing World Trade Organization negotiations.

“The stability and profitability provided by supply management are important to our rural economy,” he said.
“Nova Scotia has been a strong supporter for Canadian producers to use organized marketing systems, including supply management. The department of agriculture will continue to actively monitor the current WTO agriculture negotiations and do whatever possible to protect an orderly marketing system for turkey and other supply managed commodities. I understand it is vital to your industry that future trade agreements preserve our supply managed production ability.”

Taylor noted that a lot of excellent work has been accomplished in the area of turkey allocation for the whole bird market and the further processing market. “This new national policy will help meet consumers’ growing demand for turkey. I know the leadership Nova Scotia has shown in this new allocation method has been extensive,” he said.

Chairman Young took time in presenting his annual report to reflect on where the board has come from, to understand better where it might be headed. “As an agricultural commodity, we have fared better than most, when it comes to being a sustainable commodity,” he said. “We have been afforded the opportunity under supply management to determine our own course, without relying on government financial support.”

He said producers have been able to achieve, through legislation, the ability to negotiate a minimum live price, the ability to determine and fix the amount of product that can be produced within the nation for our commodity, and the ability for producers in all regions of the country to exist.

“So we need to be thankful for the fact that we have the system that we have. We need to fight to protect the system that we have from threats from within and from outside the boundaries of Canada.”

Producer Lori Ansems was elected to a three-year term on the marketing board.

Increased Feed Costs Concern Manitoba Turkey Producers

By Myron Love

Last year was a good year for turkey consumption in Canada.  But while consumption is increasing, growing feed costs bear watching, Manitoba Turkey Producers (MTP) chair Bill Uruski told producers attending the 39th annual General Meeting on Tuesday, March 11, in Winnipeg.

"We are monitoring the (pricing) situation very closely," Uruski said.

"We have to keep an eye on our own pricing so that it doesn't effect consumer confidence."

The 62-member Manitoba Turkey Producers is celebrating its 39th anniversary this year.  "The Supply Management model has been a great stabilizer for the industry," Uruski noted in his remarks.  "Turkey
producers haven't had to call on government for support in more than 35 years."

MLA Tom Nevakshonoff, bringing greetings from the provincial government, noted that Manitoba turkey producers have among the lowest production costs in Canada.

Uruski reported that the MTP partnered with the provincial governmentlast year to train staff to conduct on-farm inspections.  "We are also offering producers retraining in the stages involved in an on-farm food
safety program," he said.  "The auditing process started last spring. The 'mock' audits are now in full swing and several producers have completed their final program audits and received their certificates."

He further noted that the CMTA has been working on an electronic version  of the OFFS program. Two pilot versions have been tested on farm and the program is ready for implementation.

He reported that Manitoba storage stock levels on January 1, 2008, – at 759,000 eviscerated kilograms – were slightly down from the January 1,2007, figure of 793,673.

In 2007, one Manitoba producer offered to retire 77,674 kgs of quota units at $3.01 per unit while 34 producers were able to add to their quotas.

Exports bounced back somewhat last year after several years of decline. In 2007, Manitoba Turkey Producers made 40 export sales amounting to 822,934 eviscerated kilograms.  There were a further 13 live export permits to the United States which amounted to over 1,191,000 kgs.

Also addressing the meeting were CMTA chair Mark Davies and executive director Phil Boyd, Ian Wishart from Keystone Agricultural Producers and Juliann Lindenbach representing National Farm Products Council.

Manitoba Egg Producers AGM

Focus on Food Safety, Animal Welfare and Environmental Concerns

By Myron Love

The New Haven Hutterite Colony in western Manitoba, was the recipient of the Manitoba Egg Producers (MEP) Egg Farmer of the Year Award for 2007.

New Haven Colony representative Arnold Wollman was in attendance at the MEP's 36th Annual General Meeting on  Wednesday, March 12, at the Victoria Inn in Winnipeg to accept the award on behalf of the colony.

The criteria for the award – which was introduced seven years ago – take into consideration food safety, animal care and environmental stewardship – issues that once again were front and centre at the meeting this year.
    
In presenting the board report, MEP Board chair Kurt Siemens highlighted those themes.  "Environmental stewardship was a major focus of our board in 2007," he told his audience.  "MEP was an active participant
in the Clean Environment Commission review process.  Several of our directors and other producers made presentations to ensure the Commission understood how egg and pullet farmers protect our natural resources and minimize any impact on the environment."
    
He reported that a joint MEP/Manitoba Agriculture, Food and Rural Initiatives manure/mortalities composting project has been underway for several years and that a new project to determine the nutrient content of
manure was initiated last year.

Turning to animal care matters, Siemens pointed out that animal rights groups throughout North America are pressuring colleges and universities and leading restaurant chains to serve eggs from free range
hens only.  MEP responded to a letter from the Winnipeg Humane Society to a Winnipeg hospital about the issue by proactively contacting area hospitals and other institutional foodservice buyers and sending out to the
institutions the MEP brochure "The Care of Laying Hens".
    
"We encouraged these stakeholders to come to MEP for information about eggs or laying hens," Siemens said.  "This positions egg producers as being responsive to the marketplace by providing a variety of innovative eggs and egg products including eggs from different management systems such as conventional cages, free-run and free-range."
 
He also praised CEMA's adoption of a national Animal Care Policy in January. "The MEP firmly advocates adherence to the Recommended Code of Practice  for the care and handling of pullets, layers and spent fowl as
the best defence against animal rights activists," he said.  "Our goal is to have all Manitoba producers compliant with the code. To help producers who have to renovate or retool their facilities, we have out into place a
temporary quota leasing program.
 
He congratulated the twelve producers who achieved Part 3 of the "Start Clean-Stay Clean on-farm food safety program and received their Audited Standard Certificates from CEMA in 2007 (which brings to 32 the
number of certified facilities in Manitoba).   He touched on the avian flu situation – including "practice drills" on his own farm – and the MEP's effort to promote greater bio-security on the farms.

He also spoke about the new Ambassador Program that MEP is rolling out this year.  The purpose of the program, he explained, is to encourage producers to be active goodwill ambassadors in their local communities through projects or initiatives that help promote eggs and the positive image of egg and pullet farmers.

Siemens concluded his report by noting that Manitoba's Grade A Large producer price averaged $1.55 in 2007 compared to $1.49 in 2006.

In presenting the MEP's Pullet Committee report, MEP Board vice chair Cal Dirks also spoke about the issue of free-run and free-range laying hens.  "We are seeing some small increases in the number of producers
moving to free-run operations," he said.  "We need to persuade more pullet growers when they are retooling to adopt the free-run option to respond to the growing market demand."

He also spoke of about the importance of food safety and progress on a new national Salmonella enteritidis Insurance Program aimed to help defray the costs of producers who have to depopulate their barns to eradicate the presence of  salmonella.
 
During the year, Dirks noted, there were five successful quota Exchanges (as compared to one the year before) with clearing prices ranges from $8.50 in January to $7.40 in December.
    
Last year as well, the Board approved 13 requests for special permits, four of which were withdrawn or declined.

Brenda Bazylewski, the MEP's marketing and communications co-ordinator, presented an overview at the meeting of the MEP's successful and creative marketing and promotion campaign which extolls the health
benefits and versatility of eggs. The campaign also puts individual egg producers and their families in the ads to put a face on the industry for members of the general public.
    
Bazylewski noted that research out of the University of Illinois indicated that eggs and toast for breakfast is more effective in helping people lose weight than a bagel and yogurt.  Eggs and toast also gives
people more energy.
    
"We began using that information in our ads in January and will continue to use the research findings in our ads throughout the year," she said.  "Eggs – Energy that lasts" is the new tag line for MEP advertising
for 2008, Bazylewski said.
    
Throughout the year, MEP advertising promotions are being tied in with major events such as the recent Brier Curling Championships, the annual Manitoba Marathon and other sporting activities where eggs as energy can be spotlighted.
    
Other highlights of the AGM were presentations by Dr. Don Flaten, professor of Soil Sciences at the University of Manitoba, on the subject of phosphosus losses and BMPs on the prairies;Dr. Jim House, director of the
University's Poultry Research Unit, updating producers on the latest research in the field: and a presentation by MEP to leading industry researcher Dr. Bill Guenter of the University of Manitoba in recognition of his contributions to the industry.
    
The Annual Meeting this year drew 216 producers and guests. about the same number as last year.  In total, there were 171 egg and pullet producers in Manitoba in 2007, one less than the year before.

The BC Chicken Growers Association

The BC Chicken Growers Association is working hard to increase change in the industry, “especially the amount in the growers’ pockets,” president Kerry Froese reported to the BCCGA annual meeting, March 7th.

Froese’s report was read by vice-chair Frank Flokstra. While relations between the BCCGA and the BC Chicken Marketing Board have improved, problems remain between growers and processors. The Pricing Production Advisory Committee had their fill of work with pricing negotiations leading to two arbitration hearings last year. After growers and processors each lost one and won one arbitration, the two sides agreed to a conditional seven period pricing agreement. However, growers terminated the agreement after failing to resolve outstanding issues.

“Following directions received from growers in all three regions, growers are pursuing an increase in the live price of at least 8 cents/kg for A-84 (beginning March 30th),” Froese stated, insisting BC processors “can still compete nationally even with a larger than 8 cent increase” since Ontario processors not only pay all catching costs but also pay premiums above their posted price. 

However, that is not to be. On March 26th, an arbitrator set the price for A-84 at the posted Ontario price plus 4.35 cents, even less than the growers were to receive under the agreement they terminated.

Froese said the association is also lobbying federal Agriculture and Agri-Food Minister Gerry Ritz for country-of-origin labelling to counter chicken imports. “We have invested so much (in) OFFSAP certification and the new BC biosecurity program that we cannot afford to compromise the safe product we produce in Canada.  No one knows what, if any, standards chicken from other countries had to pass.”

BCCMB chair Ron Kilmury reported BC chicken production increased five percent last year to over 154 million kgs. While most went to the three main processors, Kilmury noted four new processors also received chicken last year.

The board awarded 84,000 kg of quota to 11 new entrant growers last year and expects to establish 11 new entrants this year. Seven of last year’s new entrants were specialty producers. Specialty now represents 2.4 percent of total BC chicken production.

Kilmury reminded growers all chicken farms must be certified to the BC biosecurity program by the end of 2008. By the end of 2007, 288 farms had received training, 32 had been audited and 21 were certified.

The meeting also included reports from each of the three main processors. Lilydale chief executive officer Ed Rodenburg said processors “would say (2007) was a good year,” but noted the first half was better than the second half.

He warned increased chicken prices and extra pork now on the market could affect future consumption, saying “we’re competing with cheap alternatives.”

To increase consumption, Lilydale is emphasizing its branded product and developing new further processed products such as poultry-based sausage and bacon and ready-to-eat sliced chicken.

“This is a significant growth area,” Rodenburg stated. “Consumers don’t have the time and knowledge to cook anymore.”

Lilydale is in the midst of the “largest capital expansion in our history.” It includes a two million dollar turkey sausage plant in Abbotsford and converting the Port Coquitlam, BC, plant to a Stage 3 Modern Poultry Inspection Process (MPIP) plant.

While Bruce Arabsky of the Hallmark group called MPIP “downloading by the Canadian Food Inspection Agency.” he agreed it offers some advantages. It removes line speed limits and allows birds to be trimmed to remove air saculitis and cellulitis so the number of condemned birds can be reduced.

Hallmark is also expanding. It has opened a new cold storage facility beside its Vancouver primary processing plant and will be more than doubling its further processed plant to meet growth in the fully-cooked market.
Arabsky correctly predicted the arbitrator’s ruling. At the annual meeting, he warned growers they were not likely to get all the price increases they want, telling them they need “patience in price correction.”

Scott Cumming of the Sunrise Group, said surging prices are creating “a double whammy for consumers.”
Because the price of wheat is rising faster than the price of corn, feed companies are putting more corn in the feed, making BC chicken look more yellow than consumers are used to.

While most of their expansion is taking place in Alberta, Sunrise has added a third cooking line at its Abbotsford further processing plant.