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Page 1: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

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SASKATCHEWAN

EGG PRODUCERS

A E p 0 RT

Page 2: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

SASKA TCHEW AN EGG PRODUCERS

32nd ANNUAL PRODUCER MEETING

TABLE OF CONTENTS

2000 BOARD OF DIRECTORS AND OFFICES HELD l

2001 ELECTED BOARD OF DIRECTORS 2

AGENDA

MINUTES OF THE 31ST ANNUAL PRODUCER MEETING S

INDEX TO FINANCIAL ST A TEMENT 14

AUDITOR'S REPORT 15

PROPOSED 2001 BUDGET 29

SASKA TCHEW AN LEVY TRAIL 2001 30

CHAIRMAN'S REPORT 31

<:~rvtl\ [) I Fl~<:lr() Fl Fl~~() Fllr 33

POUL TRY EXTENSION REPORT 38

MANAGER'S & MARKETING REPORT 42

LI CENSED PRODUCERS REPO RTED MARKETINGS 45

CANADIAN DOMESTIC SUPPLY. 46

PROVINCIAL GRADING BY SIZE 47

PRO D U CT D ISPOSITI O N 48

CANADIAN ESTIMA TED TABLE EGG DISAPPEARANCE 49

NA TIONAL T ABLE EGG IM PORTS 2000 50

r..1r,'::> O '} ?r~ 1;. .".~ *

Page 3: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

INDUSTRIAL PRODUCT REMOV AL '---51

PRELIMINARY INDUSTRIAL PRODUCT DECLARA TIONS 52

INDUSTRIAL PRODUCT SALES 2000 53

INDUSTRIAL PRODUCT DECLARA TIONS 54

PROJECTED SALES TO EGG PROCESSORS 55

LARGE PROCESSED PRICE 56

URNER BARRY PRI CIN G 58

COMPARISON OF NORTHERN CALIFORNIA & VANCOUVERCO NS U MER P RI CES 60

Page 4: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

SASAKATCHEW AN EGG PRODUCEI~SBOX 1637, 1810-9TII AVENUE NORTH

REGINA, Saskatchc\van. S4P 3C4TELEPHONE (306)-924-1505

FAX (306)-924-1515

1

2000 DIRECTORS

NAME ADDRESS PHONE # & FAX

CLIFF COLBORN Colborn Farms Ltd.Box 637Delisle, SK. SOL OPO

(306)-493-2968

Fax (306)-493-2570

DAN ENTZ (306)-297-3556Fax (306)-297-4193

Bone Creek ColonyBox 60Gull Lake, SK. SON lAO

STAN FEHR Fehr VenturesBox 450Hague, SK. SOK lXO

(306)-225-5722Fax (306)-225-5866

BERT HARMAN C\O Star Egg Co. Ltd.201 Avenue "0" SouthSaskatoon, Sk. S7M 1 P8

(306)-244-4041Fax (306)-664-6619

DA VID L. HOFER (306)- 731-3560Fax (306)731-2364

Arm River ColonyBox 570Lumsden, SK. SOG 3CO

TIM WIENS (306)-543-4777

Fax (306)-545-0661

Southeast Poultry FarmBox 1812Regina, SK. S4P 3C6

ELECTIONS & APPOINTMENTS

CHAIRMAN BERT HARMANVICE CHAIR STAN FEHI~CEMA I)IRECTOI~ TIM WIENSCEMA ALTERNATE STAN FEHR .

SASKA TCHEW AN POUL TI~Y COUNCIL BERT HARMANMARKETING CLIFF COLBORNEGG QUALITY DAVE HOF~R

I)AN ENTZADVISORY COMMITTEI;: BEI~T HAI~MANCONCILLIATION COMMITTI;:E BEI~T HAI~MAN

Page 5: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

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SASKATCHEWAN EGG PRODUCERSBOX 1637, 1810-9TII A VENUE NORTH

REIGNA, Saskatchewan. S4P 3C4TELEPHONE: (306)-924-1505

FAX: (306)-924-1515

2001 ELECTED BOARD OF DIRECTORS

PHONE#& FAXADDRESSNAME

(306)-297-3556Fax (306)-297-4193

DAN ENTZ Bone Creek ColonyBox 60Gull Lake, Sask. SON lAO

(306)-225-5722Fax(306)-225-5866

ST AN FEHR Fehr VenturesBox 450Hague, Sask. SOK 1 XO

BERT HARMAN (306)-244-4041Fax(306)-664-6619

C\O Star Egg Co. Ltd.

201 Avenue "0.'. South

Saskatoon, Sask. S7M 1 P8

(306)- 731-3560

Fax(306)731-2364DA VID HOFER Arm River Colony

Box 570Lumsden, Sask. SOG 3CO

(306)545-6170Fax(306)545-4112

Horizon Poultry Fam1RR#I, Box 16ARegina, Sask. S4P 2Z1

DON WIENS

(306)-543-4777l:ax(306)545-0661

TIM WIENS Southeast Poultr)' Fram

Box 1812Regina. Sask. S4P 3C6

Page 6: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

SASKATCHEWN EGG PI{ODUCEI{S32ND ANNUAL PRODUCER MEETING

TRA VELODGE HOTEL-SASKA TOON, SaskatchewanTHURSDA Y , MARCH I, 2001CHAIRED BY -ST AN FEHR

3

8:00 A.M. REGISTRATION & COFFEE

8:30 A.M. BUSINESS MEETINGDEL T A ROOM -LOWER LEVELCOFFEE BREAKS WILL BE CALLED BY THE CHAIRMAN

AGENDA

1 WELCOME

-Call 32nd Annual Meeting To Order

2. INTRODUCTION OF OUT OF PROVINCE GUESTS

3. ADOPTION OF THE AGENDA

4. MINUTES FROM THE 3151. ANNUAL PRODUCER MEETING

5. BUSINESS ARISING FROM THE MINUTES

6. SASK. CHAIRMAN REPORT- BERT HARMAN

7. 2000 AUDITORS REPORT -RICK LeGRAND -E.J.C. DUDLEY

8. SASK. CEMA DIRECTORS REPORT -TIM WIENS

9. 2001 PROPOSED PROVINCIAL BUDGET -BERT HARMAN

10. DA VID CLEMONS -CEMA EXECUTIVE DIRECTOR

II. SANDY McCURRACH -NATIONAL FARM PRODUCTS COUNCIL

12. U OF S POUL TRY EXTENSION

13. I>A YE MACKIE -MANAGER'S REPOI~T

14. NEW BUSINESS

-Appointment of Auditor I;or 2001

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15. PRODUCER OF THE YEAR AWARD

16. QUESTION PERIOD

17. ANNOUNCEMENTS

18. PRODUCER ONL y MEETING

Page 8: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

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SASKATCHEWAN EGG PI~ODUCERS

31 ST ANNUAL PRODUCER MEETING

TRAVELODGE-SASKATOON,SK.THURSDA y , MARCH 2ND ,2000

MINUTES

I. CALL TO ORDER

The 31 sI Annual Meeting was called to order by meeting Chairman Stan Fehr at 9:45

A.M.

2. WELCOME

Meeting Chairman Stan Fehr introduced the out-of-town guests:

Felix Destrijker- CEMA Chairman & Interim Executive Director-Canadian Egg Marketing Agency

Arnie Read- CEMA Field Operations- Canadian Egg Marketing AgencyJake Penner-Director- B.C. Egg ProducersDave Taylor-Director-B.C. Egg ProducersPaul Walter-Director-Alberta Egg ProducersMeb Gilani- Director Alberta Egg ProducersGraham Marriott-CEMA Inspector-Saskatchewan & AlbertaGord Herner- CEMA Inspector- Saskatchewan & ManitobaDavid Coburn-Member-National Farnl Products Council

3. ADOPTION OF THE AGENDA

Meeting Chaim1an Stan Fehr reviewed the proposed Agenda, noting the following

additions as presented.

Per Bird Check OffADDITIONS: 15.2

Cost Of Production to Producer15.3

MOTION: Moved by Bert Harman to accept the Agenda with the additions as

4. MINUTES OF THE 30TII ANNUAL PI~ODUCER MEETING

Meeting Chairman Stan I:'ehr reviewed the minutes of the 1999 Annual Producer Meeting

on Pagc 5.

presented.Seconded by: Don Wiens

Ca rricd

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MOTION: Moved by Tim Wiens to accept the minutes of the 1999 Annual Producer

Meeting.Seconded by Mike Hofer -Spring Creek ColonyCarried

s. BUSINESS ARISING FROM THE MINUTES

6. SASKA TCHEW AN CHAIRMAN'S REPORT- HARRY W ADELL P AGE- 33

Harry thanked the Producers of Saskatchewan for allowing him the privilege ofserving them.

1999 was a difficult year for CEMA- Never were the Provinces more divided.To try and reduce some of the conflict between Provinces CEMA hired a

mediation company called R.A.N.A. International. The first meeting included CEMA,CEMA alternate, Directors, Chairman and Manager. Following the first session the sizeof the group was limi~ed to one member per Province. Don Wiens was appointedSaskatchewan representative.

Following the July meeting in St. Andrews N.B., three long time members of theCEMA office were let go.

Chairman Felix Destryker was appointed acting CEO.The majority of the Provinces were satisfied with the agreement to allocate over

base Quota for Domestic use. Total number would be 807,000 layers. Saskatchewan'sshare 11,320 layers.

A letter was sent from Saskatchewan Minister of Agriculture Dwaine Lingenfelterexpressing his concern on the way the allocation was made.

In August Quebec started paying the current Industrial Product levies but leviesfrom January to July remainded outstanding.

In November Harry attended an' Organic" meeting. It was interesting to see thecross section of Producers in attendance. Egg Production using organic feed withoutbattery style cages was mentioned.

With respect to the use of Poultry Manure as a fertilizer, the Board has undertakena three-year study on the effect of field spreading of Poultry Manure the only itemholding up the project is funding.

Harry wished the new Board all the best in the New Year to come.

7. 1999 AUDITORS REPORT -RICK LeGRAND -EJC DUDLEY & CO.- PAGE- 16

Meeting Chainnan Stan Fehr called on Rick LeGrand of EJC Dudley & Co. to preseptthe1999 Audited Financial Reporl. starling on page 16 and subsequent pages.

MOTION: Moved by Ike EntL Carmicheal Colony to accept E.JC Dudley & Co.1999 Audited Financial Report as presented. :

Scconded h)': Bert 1-I~,rm~,n

Ca rricd

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8. SASKATCHEWAN CEMA DIRECTORS REPORT- DON WIENS PAGE-35

Managing the increased demand for Canadian Eggs continues to be the mostdifficult issue for the Canadian Egg Marketing Agency in 1999.

Allocation of Quota was the most critical. Fortunately, with the assistance of athird party mediator. RANA International, all ten Provinces and the Northwest Territorieswere able to reach on Interim Agreement. .

With the Interim Agreement completed, CEMA turned to "Grow For Allocation".Provinces were getting tired of waiting and at least one Province expanded its Grow ForAllocation in 1999 without approval from CEMA adding to the tension.

Security of the Grow For Program was questioned so CEMA contracted aconsultant to look at the possibility of leakage into the table market and IndustrialProduct. The consultant found a few security concerns but nothing that couldn't becorrected.

In the meantime efforts to renew the Federal Provincial Agreement was put onhold.

PRICING

CEMA and the Provinces were in agreement that the CEMA buyback should bethe COP plus three cents or Producer price plus three cents whichever is the lowest.

TRADE

In 1999 Trade talks started to merge. The five National Supply Management(SM5) Group developed ajoint position on trade in preparation of the multilateralnegotiation. Several workshops were held and the payoff was when the FederalGovernment adopted in its position many key elements from the CF A and Supply

Management position.

NUTRITION

Health Canada is in the process of reviewing the National Labeling policy.CEMA supports the removal of cholesterol from the core list of nutrients on the label andthe inclusion oftrans-fats on the list.

ON- F ARM SAFETY

The HACCP based start clean- stay clean program has been fully integrated andall farms have been rated according to the new guidelines.

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PI~OMOTION

A new television commercial was developed promoting the nutritional value of

eggs, their versatility and ease ofprcparation.A 189 page hard cover cookbook entiti1ed ""Get Crackin" was introduced this

year. The other good news was Harvard University claims that an egg a day was fine for

most individuals.

9. 2000 PROPOSED BUDGET- HARRY WADDELL PAGE-13

Chairman of the Board, Harry Waddell, presented the 2000 proposed Provincial Budgetfound on page 31 of the Annual Book.

MOTION: Moved by Darcy Freisen to approve the Provincial Boards Budget as

presented.Seconded by: Andy Gross Riverbend Farms.Carried

10. FELIX DESTRIJKER-CEMA CHAIRMAN & INTERM EXECUTIVE DIRECTOR

Felix thanked the Saskatchewan Egg Producers Board for allowing him to bringgreetings from CEMA. 1999 was a difficult year for those of us in the egg business.CEMA and the Provinces need an allocation agreement because our markets are growing-unfortunately the growth is in a market where there is little or no money to be made.

In 1998 new Quota was allocated, including "Grow For"- CEMA was under theimpression they had an agreement with the provinces. They were wrong. Provincesthreatened to increase Quota unilaterally, others increased Quota, and others threatened to

withhold levies and others actually with held levies.It reached a point where a third part)' mediator was hired to work through the

difficulties. Mediation met with modest success.The next crisis was when Manitoba filed a Notice Of Complaint to NFPC and

NFPC didn't want to consider CEMA's new Quota Order while the complaint was active.

Then at the end of 1999 Manitoba exceeded their Grow For Allocation by 139,000 layers,which upset Provincial Boards across Canada.

Felix then made the following observations:1. More and more Provinces are asking their Provincial Governments for

help.2. We are adopting economic Darwinism.3. Is that what we think prosperity means- making money? Felix then

reminded producers, it was they who developed Supply Managementto benefit egg famlers from coast to coast and we should work to

continue doing that.

II. SASKATCHEWN AGIU-FOOD COUNCIL

.Jim I~ong, Chairman of Council providcd a brief review of council and its

activities.Council mcmbcrs ,\re appoinlcd by thc f\1inistcr ofl\griculturc and rcport dircctly

to thc Ministcr.

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Council maintains a heavy schedule as they oversee eleven Boards andCommissions. The role of Council is to represent the stakeholders.

The year 2000 economically was a difficult one for Saskatchewan Agriculturesector. Grain inventories worldwide are down yet the price is not reflecting this. Subsidesby the USA and European country are keeping the grain prices at an all time low. Thehardship is compounded as input costs continue to rise.

Jim complimented Felix and Tim for putting Saskatchewan Farmers first.

12. DAVID COBURN- NATIONAL FARM PRODUCTS COUNCIL

David Coburn is a Director on NFPC and a six-generation egg fanner from NewBrunswick. .

To succeed Producers will have to change to go with the times.On his travels through the US he was able to tour several Agricultural mega

projects. With the size of these projects there is no room for the family farm. Referencewas made to a 6 million-layer operation moving from Maine to Iowa to be closer to lower

grain & corn prices.Council has prepared a review that looks after the whole orderly marketing sector-

stength and weaknesses unfortunately it was shipped out but not received.The agreement remains the same as it was in 1972. One large organization trying

to lead. What is needed is a strengthened orderly marketing system guiding the way to

maximize efficiencies. In the end -adapting is to win.

13. U OF S POUL TRY EXTENSION- SANDRA STEPHENS -WILLIAM AUDREN

Dr. Sandra Stephens spoke on Mareks Disease and Infectious Bronchitis.Mareks was found in three flocks, two flocks between 12-14 weeks and the third

flock 39 weeks of age. To control the virus the chicks are vaccinated at hatch. Howeverthe vaccine only protects against tumors from forn1ing but not against actual infection.

Thorough cleaning and disinfecting will keep the virus challenge at low level.

BRONCHITIS

Infectious Bronchitis is a highly contagious viral disease that can affect therespiratory, urogential and intestinal tissues. The infection can occur at any age.Production can be afTected especially if the viral disease strikes when a flock is coming

into lay. Two flocks in 1999 were suspected of having Infectious Bronchitis.For control. famlS are using spray vaccinations only. Vaccine companies in

Canada recommend spray frequencies every 8-10 weeks while the USA recommends 6-

8 weeks.

SALMONELLA TESTING

William Audren. Poultry Nutrtionist spoke on Salmonella testing. The testing ofSaskatchewan"s Commercial flocks lor Salrnonclla I:?ntcritidis continllcs. ..

.rhc number of flocks tcsting positivc over thc last threc ycars has dcclined.

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When a sample is found positive it is tested to find out the strain ofSalmonella. In 1999, two strains were reported. Salmonella Mbandaka and SalmonellaRubislaw. The Salmonella Mbandaka represents 95% of the positive samples collected.

14.I>AVE MACKIE-MANAGER'S REPORT PAGE 44

With the Provincial Issuance of the 1998 and 1999 Quota increase the totalSaskatchewan Issuance ended up at 819,620 Quota units. The placing of Quota with 19week old flock helped the Provincial Utilization. Provincial Utilization is calculated on a26 week average- week 1 to 26 averaged 766,786 and week 27 to 52 averaged 780,536which is well under CEMA 97%.

The Industrial Product Budget was based on 250,000 boxes. 1999 ended up at246,384. This is 3616 boxes under budget and 38,392 boxes over 1998. Included in the246,384 boxes is 14,400 boxes shipped to Alberta to fill table market request.

Pressure is on CEMA to remove table request from the Industrial ProductDeclarations and credit them to table disappearance.

In 1999, CEMA made a change to the buy back- CEMA will now buy back at theCOP price or Producer price, which ever is the lowest. On average the SaskatchewanProducer price was 2 cents lower thari the COP price.

PROMOTION

The Provincial Billboard promotion 0. Eggs: A Holiday Tradition" meshed well

with the CEMA "Be Ready to Celebrate". We applied to CEMA and received $15,000CO-OP Funding. Once again the eggs industry was visable at the Canadian Western

Agribition with displays in Agri-Ed and Lite Styles. We distributed 10,000 recipe

booklets over five days.

MOTION: Moved by Ben Entz of Bone Creek Colony to accept the Committee

Reports as presented.Seconded by Don Wiens

Carried

IS. NEW BUSINESS

15.1 APPOINTMENT OF AUDITOI"{ FOR 2000The Board of Directors recommended the firm of EJC Dudley & Co. as Auditor

for 2000.

MOTION: Moved by Tim Wiens to accept E.JC Dudley & Co. as Auditor for The--

Saskatchewan Egg Producers 2000 Audit.

Sccondcd by Cliff Colborn

Carricd

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15.2 PER BIRD CHECK OFF

Tim Wiens from Southeast Poultry Fann

With the amount of money in the Board account, Tim suggested that $1.00per bird should be paid back to the Producer.

It was explained that producers would have to vote on such a request. Ifapproved a levy increase would be required to maintain a balance of 1.2 million.Chainnan Stan Fehr explained a motion from the floor would require a vote to betaken. Producers eligible to vote must have a voting card.

MOTION: Moved by Tim Wiens to resind the previous motionmaintaining the fund balance over 1.2 million and pay producers a $1.00 perQuota hen effective April 1 st \2000.

Seconded by Dave Hofer

Chairman Stan Fehr appointed Lorraine Promhouse and Duncan Crick asScruteneers- ballots were distributed. Following the count of Ballots ChairmanStan Fehr announced the motion was lost.

Chairman Stan Fehr asked for a motion to destroy the Ballots.

MOTION: Moved by Darcy Freisen to destroy the ballots.Seconded by Tim WiensCarried

COST OF PRODUCTION TO PRODUCER15.3

Zahir Hemani of Sully's Cage Layers expressed concern of producer notgetting the COP. Zahir wanted to know how much it costs producers. Itwas explained for February 2000 the COP was 1.29 per dozen and theproducer price was 1.27 a difference of2 cents a dozen. It was explainedthe current pricing formula is set up so eggs will move from Manitoba andSaskatchewan to Alberta and B.C. to where they are needed.

CEMA update the COP monthly. There are times when the .Producer price is higher than the COP price. It should balance out overtime.

MOTION: Moved by Zahir Hemani of Sully's Cage Layers that the Board move theproducer price back to the COP price.With no seconder Chairman Stan Fehr announce the motion lost.

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16. FARM MANAGEMENT PROGRAM

Forty-three (43) Producers received recognition and were presented " Awards of Excellence"

plaques. The winners were:

GOLD

#443#470#580#606#607#609#612#613#616#617#620#623#624#625#626#631#633#634#637#640#643#646#648#702#712#714

White Feather Poultry -Stan & Marie FehrDouble H Egg Producers -Ben HryciukDinsmore Colony -John Hofer JroBeechy Colony -Joeseph HoferAbbey Colony -Philip EntzBaildon Moose Jaw Poultry -Paul WipfClear Spring Colony -Rueben WurzCypress Colony -Jerry EntzGlidden Colony -Dave D. MandelHaven Colony -Dan Jo EntzHodgeville Colony -Mike Bo HoferLakeview Colony -Ben WurzLeask Colony -Frank WollmanMain Centre Colony -Peter HoferRosetown Colony -Frank KleinsasserSimmie Colony -Paul A. HoferSpring Creek Colony -oloseph Eo HoferSwift Current Colony -George HoferLajord Colony -Paul M. HoferVanguard Colony -Mike M. EntzTompkins Colony -John M. MandelCarmichael Colony -Ike EntzEatonia Colony -Fritz MandelRose Valley Colony -Jake So WaldnerBone Creek Colony -Ben EntzWebb colony -David Hofer

SILVER

#424#494#427#612#614#618#622#628

Conly I:-arms -Korccn & I~ob Conly

Darcy I:-reiscn

Sully's Cagc Laycrs (1985) Ltd. -Zahir Hemani

Huron Colony -Bcn Entz

Estuary Poultry l:-arm -I:-red Tschcttcr

Ilillcrcst COIOlly -l:ral1k Wollmal1

Kylc Iluttcrial1 l~rcthrcl1 -1),lVid W,ildl1cr

I~ivcrvic\\' ('olol1y -I{c\'. Mikc Stahl

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1,1

#630#632#642#647#706#708#716#718#724

Sand Lake Colony -Ben WurtzSmiley Hutterian Brethren -Edward KleinsasserStar City Colony -Joe TschetterWheatland Colony -Joe G. WurzButte Colony -Jack KleinsasserSpringfield Hutterian Brethren -Paul KleinsasserRiverbend Farms Ltd. -Andy GrossSovereign Colony -Jake KleinsasserDirven Farms Ltd. -Mike Dirven

17. QUESTION PERIOD

Question asked -With only one commercial Grading Station in Saskatchewan whatwould happen if the province should lose that station?

Reponse: It is a concern, however Alberta and B.C. are short of eggs Albertastation could pick up eggs and you could have a station in Manitoba using Saskatchewaneggs as a back haul.

18. ANNOUNCEMENTS

19. ADJOURNMENT

Motion: MOVED BY Zahir Hemani Sully's Cage Layers that the 31st AnnualProducer Meeting be adjourned at 4:30 P.M.

Seconded by Andy Gross Riverbend ColonyCarried

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SASKA TCHEW AN EGG PRODUCEI~S

AUDITED FINANCIAL ST A TEM ENTS

FOR YEAR ENDI.NG DECEMBER 31,2000

15AUDITORS REPORT

16BALANCE SHEET

17STATEMENT OF OPERA TIONS

18ST A TEMENT OF INDUSTRIAL PRODUCT REMOV AL PROGRAM

19ST A TEMENT OF CASH FLOW

20NOTES TO FINANCIAL ST A TEMENT

22SCHEDULE OF EXPENSES

23ADDITIONAl. INFORMA TION

24DISCLOSURE

262000 BUDGET COMPARISON TO ACTUAL

272000 LEVY TRAIL

EJ.C. Dudley & Coo

Chartered Accountants

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Auditors' ReDort

To The Directors ofSaskatchewan Egg Producers

We conducted our audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation.

~~ey ~~~ "'-"" C;~..

Chartered Accountants

Regina, SaskatchewanJanuary 25, 2001

I

:j

-JE.J<.: lIUl>LfY .~ GO

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SASKATCHEWAN EGG PRODUCERSBalance Sheet

As at December 31. 20QQ

ASSETS

gQQQ$ 591,258

950,000202,983

16,410176,825

30,6812,721

25.4111 ,996,289

~$ 594,677

950,00070,82014,065

166,16738, 750

2,14225.189

1,861,810

CURRENT ASSETSCash and bank

Investments -note 3Accounts receivable -Producers -note 2GST receivableAccounts receivable -CEMAAccounts receivable -other

Prepaid expensesAccrued interest receivable -note 3

Total Current Assets

CAPIT AL ASSETS -note 45.260 2.153

Total Assets$2.001.549 $1.863.963

liABIliTIES AND SURPLUSCURRENT LIABILITIES

Accounts payable and accrued liabilitiesCanadian Egg Marketing Agency -Levies

Total Liabilities

$ 183,653

248.240

431,893

$ 70,770

138.68f

209,452

1.569.656 1.654.511

$2.001.549 .$.1.8.63...9-.6-3-

/ ~q?~- ~ /6. --'C;/ G.

/ .

See Accompanying Notes

E.J.C. OUDLEY & CO.

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17

SASKATCHEWAN EGG PRODUCERSStatement of Operations

For the vear ended December 31.2000

Restated~

$ 372,74575,05318,726

77466.601

gQQQ$ 382,956

82,62018, 772

250

484.598

REVENUEProducers operating fee -Unified LevyInterest and other incomeOver quota penalties

LicensesTotal Revenue

52,23784,853

147,07544,900

349, 18447,44119.261

744.951

54,96490, 784

143,77623,734

167,73536,77518.807

536.575

EXPENSESAdministration -page 8Board of Directors -page 8Personnel -page 8Promotion -page 9Provincial share of levyResearch and studies -page 8

Rent, janitorial, insurance & utilitiesTotal Expenses

Excess Revenue (Expenses) from operations260,353) ( 69,974)

Excess Revenue from Industrial ProductRemoval Program -page 4

175.498 78.050

EXCESS OF REVENUE FOR THE YEAR( 84,855) 8,076

SURPLUSBalance beginning of year

Balance end of year1.654.511

$1.569.6561.646.435

$1.654.511

See Accompanying Notes

-Jj(:OUOLEY .~ (;0.

Page 21: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

~

18

SASKATCHEWAN EGG PRODUCERSStatement of Revenue and ExpensesIndustrial Product Removal Program

For the vear ended December 31. 2000

Restated~

$4,316,526116.40~

4.432.935

gQQQ

$4, 196,866

254.401

4.451.267

REVENUE

Proceeds from Canadian Egg Marketing AgencyProducer Removal Fees

Total Revenue

EXPENSES

Purchase of Product

Handling and tray washing

Provincial Removal

Total Expenses

4, 196,8666,678

72.2254.275.769

4,316,526

7,057

31.302

4.354.885

EXCESS REVENUE FROM INDUSTRIAL PRODUCTREMOVAL PROGRAM

$ 175.498 $ 78.050

See Accompanying Notes

iIIIII

JI:.J(~ OIJlIl[Y ." GO

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SASKATCHEWAN EGG PRODUCERS

Statement of Cash FlowsFor the vear ended December 31.2000

gQQQCASH FLOWS FROM (FOR) OPERATING ACTIVITIES

Excess revenue for the yearAdjustments for:

Amortization

($ 84,855) $

1.313

, 83,542)

538

8,614

( 137,097)

( 222}

( 579)

222.441

1,001

( 128,634)( 4,600)

71( 8.048)( 132,597)

Changes in Non-Cash Working CapitalAccounts receivableAccrued interestPrepaid expensesAccounts payable

Cash Flows From (For) Operating Activities

CASH FLOWS FROM (FOR) INVESTING ACTIVITIESPurchase of capital assets ( 4.420) 0

Net decrease in cash 3,419) ( 132,597)

CASH POSITION -Beginning of the year

-End of year594.677

$591,258

727.274$594.677

See Accompanying Notes

~~

E..1.C OUDLEY & CO

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SASKATCHEWAN EGG PRODUCERS

Notes to the Financial Statements

December 31. 2000

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING

ACCOUNTING FOR INCOME FROM LEVIES AND LICENSES FEES

The Board is empowered under enabling legislation (The Agri-Food Act) to collect levies andlicense fees on all eggs marketed in Saskatchewan.

The Board has instituted a unified levy system which bases the levy on expected number ofdozen eggs which will be produced in a fifty-three week (53) period.

Restated

~$3,556,466

gQ.QQ

$3,977 ,930T otallevies charged to all producers

Portion of levy attributed to CEMA based upon actualreported marketings of eggs 3.340.573 3.067.312

Amount retained by the Board 637,357 489, 154

Portion of levy allocated to Board Administration 382.956 372.745

Remainder of levy allocated to Industrial Product Removal $ 254,401 $ 116.409

2. ACCOUNTS RECEIVABLE -PRODUCERS

Accounts receivable from producers is made up of the following:

~$ 152, 167

5,388

34,776

10.652

$ 202,983

~

$ 48,083

7

19,364

3.366

$ 70,820

Unified LeviesInterestOver-Quota PenaltiesGST

;

i

I

-JE.J (:. DUDLEY .r. CO.

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21

SASKATCHEW AN EGG PRODUCERS

Notes to the Financial Statements

December 31.2000

3. INVESTMENTS

AccruedInterestQQ§!

$450,000 $ 21,267

Bank of MontrealGuaranteed Investment CertificateInterest Rate: 5%Maturity Date: January 20, 2003

500.000 4.144Guaranteed Investment CertificateInterest Rate: 5.5%Maturity Date: November 5, 2002

$950,OOQ $ 25.411

4. CAPITAL ASSETS

The Board records capital assets at cost less accumulated amortization, with expenses forrepairs and maintenance charged to operations as incurred.

Amortization is provided using the diminishing balance method at a rate of 20% for furnitureand equipment.

Capital assets and related accumulated amortization as at December 31, 2000 are asfollows:

2000

Net Book

~

1999

Net Book

~

Accumulated

AmortizationQQ§!

Furniture and Equipment $ 44,420 $ 39,160 $ 5,260 $ 2,153

5. INCOME TAXESThe Board is an agricultural organization from which no part of the income is payable to, or

is otherwise available for the personal benefit of any member, therefore it is exempted fromincome tax.

6. CONTINGENT LIABILITIESThe Board is contingently liable for the amount of $47 ,600 in regard to a documentary letter

of credit issued for the Canadian Egg Marketing Agency. This contingent liability is secured byassignment of producers accounts receivable.

7. COMPARATIVE FIGURESCertain balances of the preceding period have been reclassified to conform with -the current

year's financial statement presentation.

EJ_C DUDLEY & GO

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22

SASKATCHEWAN EGG PRODUCERSSchedule of Expenses

For the year ended December 31. 2000

gQQQ ~

$ 5,8001,313

156885

3,4612,0005,157

14,6479,1003,7981, 1634.757

$ 52.237

$ 7,740538

0

1,0043,2202,0008,974

10,4187,5718,691

9223.886

$ 54.964

Administrative ExpensesAudit and accounting feesAmortizationBank chargesComputer fees and suppliesEquipment rental, service contractMembershipLegalMeetingsPostage and expressStationery and copier suppliesSubscriptions and literatureTelephone and fax

Total Administration

$ 53,193

31.660

$ 84,853

$ 55,734

35.050

$ 90, 78~

Board of Directors and ExpensesTravel and sustenancePer Diem allowances

Total Board of Directors

Personnel ExpensesSalaries and benefitsTravel- staff

-managerTotal Personnel

$110,09618,97418.005

$147.075

$105,97720,88116.918

$143.776

34,5108,2002,5002.231

$ 47,441

34,510

0

0

2,265

$ 36, 775

Research and Studies ExpensesProducers extension programOzone researchResearch & studies U of SSE survey

Total Research and Studies

r.J<:o\IOllY.".(;O

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23

SASKATCHEWAN EGG PRODUCERSAdditional Information

For the vear ended December 31. 2000

.?:QQQ$ 21,280

12,08911,619

7,8004,5503,5663,086

07.490

71,48026.580

$ 44.900

~$ 21,143

7,1930

0

1,850

1,597

1,644

2,1347.658

43,21919.485

$ 23,734

PromotionT app CommunicationsLivingston Dist.CTVCBCFACSStar EggSaum EnterprisesAlberta Egg ProducersPayees (18) under $2000Total paidLess recoveries

Net Expense

gQQQ$ 4,575

4,2751,5754,6351,6504,3004,5006,150

0$ 31.660

~$ 3,600

4,2507,525

600

6,8252,4003,5254,7501.575

$ 35.050

Per Diem AllowancesDavid L. HoferDaniel EntzHarry WaddellBert HarmanDon WiensTim WiensCliff ColbornStan FehrNon-directors

Total Expenses

Per diems allowances are paid to directors on a monthly basis for being directors, attendingmeetings and director travel. The per diems are paid in the following amount:

$150 per month$150 per meeting$75 per day of travel$175 per month$175 per meeting

Direct,or per diemMeeting per diemTravel per diemChairman per diemChairman meeting per diem

ii

--J1.J(;\)UI)l~:Y.\~CO.

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Auditors' Report

To: The Directors of Saskatchewan Egg Producers

a)

b)

c) transactions are executed in accordance with management's authorization, and producermoney expended is applied to the purpose for which it was intended by legislation; and

d) essen~ial records are maintained and the rules and procedures applied are sufficient tosafeguard and control producer money against loss from unauthorized use or disposition.

,.I,

i

-J.Jf:IJIJOlr.y."l:O

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25

-2-

.Because of the inherent limitation in any system of internal control, errors or fraud may occurand not be detected. Also, projection of any evaluation of the system on internal control to futureperiods is subject to the risk that procedures may become inadequate because of changes in .

conditions, or that the degree of compliance with the procedures may deteriorate.

In our opinion, based upon the above criteria, the system of internal control of SaskatchewanEgg Producers in effect as at December 31' 2000, taken as a whole, was sufficient to meet theobjectives stated as above insofar as those objectives pertain to the prevention or detection of errors orfraud in amounts that would be material in relation to Saskatchewan Egg Producers.

~ d /:/

E.;;;~;y- &{~~ .

Chartered Accountants

Regina, SaskatchewanJanuary 25, 2001

1:..1(; I)UOl[Y ~ co

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26PROPOSED-2001 BUDGET

BUDGET 2000 PROJECTED 2001 BUDGET

REVENUE

$; $, $

i $; $i $

.$

$

395,090.00 ; $2,000.00 $.

170.00 $30,000.00 $

1,~09.QO : $131,100.00 : $46,00q.00 .$

605,670.00 $

391,941.002,000.00

160.0026,200.00

2,000.00299,945.00

51,250.00

773,496.00

Provincial Admin LevyOver Quota Penaltylicence FeeBank InterestProducer InterestProducer Levy

Ilnvestment Income

TOTAL REVENUE

EXPENDITURES

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

-$7,200.00 $

121,500.00 .$195,000.00 $

8,000.00 $-$

3,200.00 $3,500.00 .$1,800.00 $

10,000.00 $2,000.00 $

12,000.00 $500.00 $

8,000.00 $1.800.00 $7,200.00 $3,800.00 $

48,000.00 $33,000.00 $

109,000.00 $19,000.00 $3,000.00 $

15,000.00 $45,000.00 $35,000.00 $6,400.00 $2,800.00 $

12,000.00 $1,200.00 $

30,000.00 $3,000.00 $

35.000.00 $-$-$-$

-$7~200.00 ' $

90.000.00 ' $

185,737.00 $6,000.00 $

200.00 $3,615.00 $3,500.00 $2,003.00 $7,000.00 $2,000.00 $

14.000.00 $500.00 $

8,375.00 $960.00 $

3,000.00 $5,790.00 $

49,000.00 $31,000.00 $95,000,00 $19,357.00 $2,997.00 $

13,000.00 $42,000.00 $35,000.00 $

5,250.00 $2.167.00 $9,918.00 $1,400.00 $

-$2.200.00 $

10, 700.00 $-$-$-$

-

7.200.00100.000.00107.783.00

6.400.00200.00

4.000.003.500.002.000.00

20.000.002.000.001.500.00

500.00

9.500.001.500.004.000.006.000.00

48.000.0032.000.00

150.000.0020.000.00

3.500.00

15,000.0045.000.0036.000.00

5.500.002.300.00

11.000.001.750.00

30.000.002.400.00

35.000.0020.000.0013,180.002.000.00

jTray WashingStorage & HandlingProvincial RemovalProvincial ContributionIAudit Bank Charges

Computer ExpenseCopier & Supplies

SubscriptionsLegalFacs Membership

Meeting ExpenseMiscellaneous

PostageService ContractOffice SuppliesPhone & FaxDirectors TravelDirectors Per DiemSalary & BenefitsStaff TravelManager In Province ExpenseManager Out Province ExpenseAdvertising & PromotionExtension ServicesInsuranceJanitorialOffice RentUtilitiesEarly Fowl RemovalSe TestingResearch & Studies

Strategic PlanningPlastic Tray Buy Back

Field Spreading Manure

TOT AL EXPENDITURES $ 782,900.00 $ 658,869.00 $ 748,713.00

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27SASKATCHEWAN

LEVy TRAIL FOI{ 2000

STARTING WEEK #1

CEMA16.9c:

SASKATCHEWAN<1.06~

SASKATCHEWAN

LEVY 2.66~

ADMIN

2.5~PIF

CONSUMER

14.4~

IP

REMOV AL

*0.66~

ADMIN

2.0~

.Not rccovcr:lblc in the COP I:ormula

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28

23.5 cents

CEMA

21.9 centsSaskatchewan

( 1.06 cents)--.

Saskatchewan Levy

2.66 cents

I P(F

IConsumer

19.4 cents

IPAdmin

2.5 centsAdmin

2.0 cents

Removal

..66 cents

.Not recoverable in the COP formula

Page 32: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

PROPOSED BUDGET 29

REVENUE 2001 BUDGET

$$$$$$$

$

391,941.002,000.00

160.0026,200.002,000.00

299,945.0051,250.00

773,496.00

Provincial Admin LevyOver Quota PenaltyLicence FeeBank InterestProducer InterestProducer LevyInvestment Income

TOTAL REVENUE

EXPENDITURES

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

7,200.00100,000.00107.783.00

6,400.00200.00

4.000.003.500.002.000.00

20.000.002,000.001.500.00

500.00

9.500.001.500.004,000.006,000.00

48.000.0032.000.00

150.000.0020.000.00

3,500.0015,000.0045,000.0036,000.00

5.500.002,300.00

11.000.001.750.00

30.000.002.400.00

35,000.0020.000.0013.180.002.000.00

Tray WashingStorage & Handling

Provincial Removal

Provincial Contribution

Audit

Bank Charges

Computer ExpenseCopier & Supplies

Subscriptions

LegalFacs Membership

Meeting ExpenseMiscellaneous

PostageService Contract

Office Supplies

Phone & Fax

Directors Travel

Directors Per Diem

Salary & Benefits

Staff Travel

Manager In Province Expense

Manager Out Province Expense

Advertising & Promotion

Extension Services

Insurance

Janitorial

Office Rent

Utilities

Early Fowl Removal

Se Testing

Research & Studies

Strategic PlanningPlastic Tray Buy Back

Field Spreading Manure

TOT AL EXPENDITURES $ 748, 713.00

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30SASKATCHEWAN

LEVY TRAIL FOR 2001

ST ARTI NG WEEK#14\2001

24.5 c

SASKATCHEWAN

( 0.55 ~)-

CEMA LEVY21.5 c

SASKATCHEWAN LEVY3.55 c

IP

REMOVAL

* .55 c

PIF

CONSUMER

19.0 c

ADMIN

2.0 c

ADMIN2.5 c

ADMIN

* 1.0 c

CEMA levy is allocated to two funds: the Adminstrative Fund, which covers the costs ofAdminstration and Marketing; and the Pooled Income F.und (PIF) which provides for

Interprovincial movement and sales of Indusrial Product.Provincial levy is allocated to two funds: the Administration Fund, which coverss.askatchewan's administration and promotion; and the Surplus Removal Fund, whichprovides additional funds to remove Industrial Product in the Province that is not coveredNationally. ...

* Not recovered in the COP Formula.

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31

Chairman's Report

The year 2000 has been a very good year for the Egg Industry in Canada. According tothe January issue ofWorld Poultry magazine, Canadian Egg Producers have eQjoye~ t~eb~e'!el~ in the..world- for egg prDduction during th~ year 2000. IQ 1999~a~_besLnrafitability in the woI-~~ro~gion. I think that we all realizethe fact that without a healthy marketing board system in the country we would not be inthis position. The efforts made by your board during the past year have been directed tomaintain our supply-managed system and to attempt to strengthen Saskatchewan'sposition in the National system.

As you are aware there are going to be significant changes to supply management duringthe coming years. Our market for eggs and egg products are changing. Fourteen percentof total egg production at one time was enough to supply the processed egg market inCanada. That is no longer enough to satisfy the growing market for processed .'.~s. Thisis the fastest growing segment today. Because of this fact other provinces in the countryhave made significant moves to ensure the ongoing viability of their processing andproduction industries by placing "Eggs for Processing" quota birds in their provinces. Todate allocations are as follows:

BC 100,000Saskatchewan 200,000Manitoba 900,000Ontario 400,000

Quebec 100,000All of these birds are not currently placed but will be sometime during the year 2001

The position of the Sasatchewan Egg Producers has been to attempt to acquire as much ofthis "Eggs for Processing" quota as possible in order to maintain the viability of ourindustry here, and to provide the opportunity for growth for our industry .In my mind it isimperative for us to place our "Eggs for Processing "quota in a timely way or we standthe risk of losing that quota to other provinces. Both Ontario and Manitoba have plans toplace significantly more birds in the near future.

It has become increasingly apparent during this year that Saskatchewan has rcla::ively avery small influence in the politics of the CEMA. This was shown again to us WIth theresults of the QAC committee recommendations being accepted by the CEMA at theirNovember meeting. hat a reement ensures Saskatchewan takin a back seat to~rovinces with a lesser competitive advantage than Saskatchewan for futuret~e q.uo~. Your Board members will be doing all within their power to work towardsincreasing our position relative to other provinces during the coming year .

Our Provincial Government has taken an interest in the Egg Industry by initiating theformation of an Egg Industry Task Force. They have also shown their commitment to ourindustry by employing Jim Findlay as an egg industry resource person for a term period. .This has been very helpful to the Board in providing in depth analysis of"Eggs forProcessing" production for the province. We expect that continued positive workingrelations with our Provincial Government officials will enable us to better establish andstrengthen our position nationally.

Page 35: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

32Again in 2000 we had an outbreak of IL T in the province. The board recommended to theprovincial Government that the flock should be eradicated. The reason for this of coursewas to take away the risk of this disease spreading to other poultry farms in the province.This raises a number of issues. The Provincial Government does not want to ha'!~ to paycompensation on an ongoing basis to producers in the province to cover the costs of thiseradication. Even with governmental assistance the costs involved in eradicating a flockare significant to the producer involved. Further examination of this problem needs tooccur.

This year at our Annual Industry Banquet we will be presenting an award to the EggProducer of the year. We have watched for the last number of years the Broiler, Turkeyand Hatching Egg sectors honor one of their producers in this way. So I am happy to beable to tell you that this year is the beginning for the egg producers to recognize their bestproducer. The criteria used for this involved using the Start Clean Stay Clean ratingsalong with egg gradeout information to establish a winner. The information was given toWilliam Audren to select a winner in an impartial way. Be sure to be at tonight's banquetto find out if you have won the Producer of the Year award!

The coming year has many challenges for us. The World Trade Organization talks arecontinuing. This as usual could be a threat to our marketing system if the FederalGovernment does not stand firm to the attacks to supply management from othercountries. In a recent presentation by Rory McAlpine (Executive Director forInternational Policy) he gave assurance of the Federal Governments commitn'.ert tosustaining Supply Management system. Our board will be watching the WTOnegotiations and make every effort to promote this position to our governments whennecessary.

A second challenge this year comes with the renewal of the Federal ProvincialAgreement that marketing boards operate under. Changes to this agreement need to bemade to reflect the world we live in today. As I understand the process, unanimousagreement between all the provinces and provincial boards is required, in order forchanges to be made. In light of what we feel have been unfavorable policies toSaskatchewan, in the past, being forced on us by CEMA this renewal process will beused to strengthen Saskatchewan's position in the National system.

During the year past the board went through an exercise to establish a strategic plan forSaskatchewan Egg Producers. Our Mission is "To promote a healthy, expanding,innovative egg industry in Saskatchewan." I want to express my appreciation to all of theboard staff and directors for working very hard towards that end during the past year.

Sincerely

Bert HarmanChairman

Page 36: Saskatchewan Egg Producers Annual Report - 2000 · TRAVELODGE-SASKATOON,SK. THURSDA y , MARCH 2ND ,2000 MINUTES I. CALL TO ORDER The 31 sI Annual Meeting was called to order by meeting

33

2000 REPORT FROM TIM WIENSCEMA DIRECTOR FOR SASKA TCHEW AN

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34

The new F .P.A. has to consider the future \'iability of an industry based on comparativeadvantages. We know that with the economies of scale we can produce eggs as and moreefficiently as anyone in Canada. But, if we are only allowed to export at the rate that CEMAdecides on then our future viability to complete will be diminished and eventually we will

disappear ..It is always a challenge to be able to work in a large community for the common good for

all. We have shown in the past that our first inclination is to work with the other provinces for aNational system. I feel that we could work that way again but it will be up to the leaders in theCentral Provinces to show that they want a National system for the good of all. The alternativefor them, the challenge for us, will be to become more independent from the National system.Either one will take more time and energy from your Board and staff.

Finally, 1 want to thank my fellow Directors and our manager for their support. Therewas some doubt in my mind last year ifI should return to the Board. My views and position onissues is usually not main stream and you can get tired of rocking the boat. But through it all Iwas encouraged by the support ofmy peers.

I look forward to serving you for another year.

Respectfully submitted,Tim Wiens

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35

2000 REPORT FROM CEMA

Quota Allocation

Developing an agreement for the allocation of quota among the provinces wasCEMA's top priority in 2000 as, at the end of February, the Agency found itselfwithout a quota order following formal complaints by Saskatchewan and oursister province, Manitoba. A quota order was received increasing the nationalallocation by four percent.

Robert Sexty, CEMA's director from the Consumers Association of Canada, usedhis skills as a facilitator to chair the Quota Allocations Committee which hadrepresentatives from each of the provinciat egg marketing boards. I was amember of this committee and it is fair to say that many long I hard hours wereput into developing an allocations plan. At times, the process was extremelyfrustrating and Robert certainty had his work cut out for him. As a result of hisdedication and the work of the Committee members, we do have a QuotaAllocations Agreement. We know there are still some concerns among somesignatories and that allocations issues aren't over .

Budget

Numerous factors including increased industrial product volumes and low pricesnegativelyaffected CEMA's Pooled Income Fund in 2000. Nonetheless, theAgency was able to hold levies constant throughout 1999 and the first half of2000.

The national levy was increased half way through the year. Though it wasn'tenough to make up for all of the losses experienced in 2000, the Pooled IncomeFund did record a surplus balance through the latter part of the year. The ratehas been marginally reduced for 2001 and we do not anticipate the need toincrease the rate during 2001.

Food Safety

CEMA's HACCP-based Start Clean-Stay Clean program leads the world in on-farm food safety programs and almost all regulated egg producers take part inthe program. Changes for the rating sheet were approved in 2000 to emphasizethe need to have a working cooler on farm and the need to have a goodproduction record keeping system. Throughout 2000, we pressed the CanadianFood Inspection Agency to develop standards for officially recognizing on-farmfood safety programs. We'll have to continue to argue for this recognition in 2001along with other members of the Canadian Federation of Agriculture.

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36

Animal Care

There were significant developments in the animal welfare file in 2000. TheJustice Department's proposed amendments to the Criminal Code to movecruelty provisions out of the Code's section dealing with property .Though theamendments have not been approved, they did signal a shift in society's attitudesabout animals and the way they are treated. While we all agree unnecessarysuffering must be avoided, CEMA, together with many other agricultureorganizations, was concerned about the implications for farmers.

In addition, revisions to the Code of Poultry Handling began in 2000. Onceproposed revisions are completed, they will be reviewed bya Committee, whichis made up of industry .government, scientists and the Canadian Federation ofHumane Societies, in an attempt to build consensus.

Marketing

CEMA promotes eggs through television advertisements, retail promotions andeducational programs with health professionals. In its promotions, the Agencyemphasizes the nutritional merits of eggs as well as their versatility and that theycan be eaten many ways at any time of day. A new creative theme wasdeveloped for 2000 and research shows consumers understood the messages.New and improved advertisements were produced for 2001 and they are alreadyon the air. In addition, CEMA developed and implemented national retailpromotions with product partners throughout the year to encourage eggpurchases and to distribute CEMA-developed egg recipes.

It is clear the future of Canada's egg industry is dependent on successfulmarketing and promotions programs which encourage egg usage by consumers.In 2001, CEMA will explore ways to expand these programs.

Qonations

CEMA continued its donations program in 2000. Aware that eggs have thehighest quality protein of any food, in addition to many minerals and vitamins,CEMA believes everyone, including the less fortunate, should have thiswonderful food available to them. Domestic donations were made through theCanadian Association of Food Banks while dried egg powder was distributedthrough Canadian Food for Children to over 21 countries.

Risk ManaQement

tn 2000, the Agency started to systematically assess risks so it is better able todevelop resources for the management of market-threatening issues and crise.s.A risk audit is to be completed early in 2001 and we hope to be able to run atable-top mock crisis exercise later in the year .

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~

CEMA continues to work with its colleagues within the Canadian Federation ofAgriculture and other national supply management organizations t9 ensuresupply management's interests are represented at the World Trade Organization.Other countries, notably the United States, New Zealand and Australia, wantCanada to open up its supply-managed markets. Agricultural talks are expectedto begin seriously in 2001 with an international stock-taking exercise in Marchkicking that process off. The national supply-managed organizations includingthe Canadian Egg Marketing Agency are consulting regularly with government.

The next round of wro agriculture negotiations could take up to 10 years tocomplete. CEMA is in the process of hiring a trade specialist to guide us throughthis long round of talks.

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ANNUAL REPORTOF

JANUARY- DECEMBER 2000

Prepared for:OR. HANK CLASSEN, DEPT OF POUL TRY SCIENCE U.OF S

THE SASKA TCHEW AN POUL TRY PRODUCTION BOARDS

Prepared by:SANDRA STEPHENS and GUILLAUME AUDREN

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Report of the Saskatchewan Poultry Extension Service.Janual")' -December, 2000

I. INTRODUCTION

The Saskatchewan Poultry Extension Service is funded by the four Saskatchewan PoultryMarketing Boards and Lilydale Poultry. There are two service personnel: a PoultryScientist and a Veterinarian. The University of Saskatchewan provides an office for eachand access to university resources. Policy is established by the Saskatchewan PoultryCouncil on recommendation by the Research and Extension Committee. The service issupervised and administered by Dr. H. Classen (Animal & Poultry Science) University ofSaskatchewan.

Program Objectives:

I. Monitor industry performance.2. Identify and solve industry problems.3. Investigate individual production problems.4. Communicate advances in poultry production.5. Act as a liaison to individuals supplying feed, medication and equipment to the poultryindustry .

General:

Dr. Wanjala Lusimbo was hired to fill the poultry pathologist position in the departmentof Veterinar)' Pathology left vacant by Dr. Riddell's retirement. However, Dr. Lusimbo'suntimely death in August 2000 has resulted in this position remaining vacant. At thistime it appears unlikely that the university \vill fill this position before July 2002

In the past year Poultry Extension has arranged for speakers for the technical sessions,and lunch~on speakers at tl1e Annual Poultry Producers Conference. Topics dealing withcurrent disease problems and new and old management practices were covered in eachproducer group session.

The fall producer meetings in 2000 were held in Saskatoon and Wynyard for broilerchickens; Saskatoon for Turkeys and Broiler Breeders and Saskatoon and Swift Currentfor Table Eggs. Producer turn out was very good for the Egg and Breeder meetings butpoor for the other producer groups.

Due to poor producer participation for some group~, considcration will necd to bc givcnto the future of thcsc meetings. Suggestions for alternativc information cxchange wouldbe welcomed.

2000

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TABLE EGGSv.

I nfectious Laryn!!otracheitisA 30,000 bird laying flock was depopulated in November. It appears that the infectionwas brought onto the farm by 19 week old pullets arri ying from out of province.Discussions are on going about the policy that should be adopted in Saskatchewan withregard to this disease. A full report will be submitted to the Egg board once the re-population and quarantine period are complete.

Salmonella TestingThe Saskatchewan Egg Board is testing all flocks for Salmonella enlerilidis. There was adecrease in the number of flocks testing positive during the 2000 period when comparedwith the last three preceding years, 14% vs. 21.5%,33.3% and 36.1% for 1999,1998 and

1997, respectively.

Year # flockstested

% positive # of strains#Dositive

" 1997 1081088883

3936]912

36.133.321.514.0

9

11

4

6

~

11999

r:iOOO

The number of different strains of Salmonella has increased since last year, but is lessthan three years ago. In 2000, six strains of salmonella were reported. ..<)'almonellambm1daka continues to be the most common type of salmonella found in Saskatchewan.This bacteria represented 67% of the positive samples collected during 2000. The otherstrains of Salmonella reported during 2000, were cases of ..<)'almone/1a rubi.~-Imil.MOnle\lideo, muesler. ri.~.sen and il?{anli.\.. A survey form is sent to all producers in orderto help deternline the characteristics of those farnls with and without salmonella. If thenumber of positive flocks is still decreasing in the next two years, the Saskatchewan eggindustry should try to aim for a salmonella free industry. In Saskatchewan, there arefamlS that have always been negative for salmonella. and some farms that have switchedfrom positive to negative and are staying negative for salmonella. This indicates that itcould be possible to think that our industry could be free of salmonella. This would be apositive image for the egg producers of

Bod\' weight survey

The Egg Producer Fall Meetings took place in Swill Current and Saskatoon, December 6and 7. Thc results or the summer survey on body weight in layer flocks after 55 weeks ofage was presented to the producers. lnis survey was done to estimate the situation of thcSaskatchewan leghorn flocks afier 55 weeks or age. It appears that 80 to90% of tllcflocks are over weight according to the recommendations or the primary breeders. lncsurvey estimated an average "extra" body weight of 180 9 per bird around 55 weeks ofage; this would indicatc thatthcse birds would prohably hc 20% ovcrweight at thc ci'l9 ofthc cyclc. .Inis hody weight prohlcm is n{)t ,lllcctin!c!. thc c!::,.g production "nd ~hcll

2000

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41

qualit)'. but indicates a poOr feed efficiency in those leghorn floCks. Methods ofcontrolling body weight and improving feed efficiency were presented during the fallmeeting to producers. Feed management techniques such as. phase feeding and feedrestriction could be used in Saskatchewan to increase profilability in layer f10cks.

Shell Quality Dfoblem

A few farms showed shell quality problems in their flocks, in general a calciumdeficiency was the cause of the poor shell quality. Supplementation of oyster shell andvitamin 03 was recommended to the producers. Top dressing oyster shell on the lastmeal combined with vitamin 03 in the water can correct the problem in less than 48hours if necessary precautions are taken in time.

Wheat screenings

A wheat screening feeding trial with laying hens was scheduled for 1999-2000. Twodifferent sources of screenings, from West and Central SaSkatchewan, were used for thefom1ulation. After consultation with two industry partners, North West Tem1inal andAg-Pro.. wheat screenings (minimum #1 wheat screenings) were to be fed at graded levels0, 25 and 50% to laying hens as a replacement for feed wheat. Wheat screening sampleshave been chemically analyzed for key nutritional characteristics (starch, fat, protein,amino acids.. fiber and ash). Samples were to be used in nutrient retention and laying henproduction trials. The production trial was designed to last 40 weeks and data collectionwould have included: egg production.. feed intake, feed conversion, egg quality (weight,shell, albumen), and bird health. In the laying hen trial, each dietary treatment wouldhave been fed to 10 replications of hens with each replication using 15 hens (150 hens intotal). Unfortunately. a disease condition stopped the study at 19 weeks of age andforced the cancellation of this trial. In September 2000. anew flock was placed for thewheat screening trial. using the same protocol: this feeding trial is scheduled to end inFebruary 2001. Results and recommendations will be available sometime in the spring2001.

:?000

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MANAGER AND MARKETING REPORT -2000

Work on the Egg Inforrnation Management System (ElMS) continued through 2000.Today we received 5.2.3 upgrade to the Software Program. More of the troubleshooting andprogram adjustments are being done by CEMA staff.

In the office the motherboard malfunctioned on the old computer so the system wasreplaced with the newest model.

In June of 2000 Lorraine Promhouse resigned from her part time position with the Board.

QUOTA PLACEMENT

With National Farm Products Council approval ofCEMA's Quota Order, CEMAallocated 810,274 Domestic Quota Units Nationally.

Saskatchewan's Allocation was 11,357 Quota Units, to date we have 4200 Quota Units tobe placed.

UTILIZA TION

Provincial Utilization is calculated on a 26-week average.Weeks # I to 26 average Provincial Utilization was 774,942Weeks # 27 to 53 average Provincial Utilization was 779,861

With the Allocation of Domestic Over Base Quota, the 97 % was not a problem for the

Province.

INDUSTRIAL PRODUCT

The 2000 Industrial Product declaration budget was based on 250,000 boxes. Actualdeclarations for the year 2000 ended up at 238.864 boxes; this was 11.316 boxes under budget or

7520 boxes below 1999 declarations.CEMA made a change to the sourcing policy as follows- Eggs shipped from a Province

to fill table request will be credited to that Province's table disappearance.

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43EGG PI~ICING

Producer Price changed five times through out 2000

Producer Price COP Price

December 26/1999January 9/2000February 20/2000March 26/2000

Apri116/2000May 14/2000June 11 /2000July 9/2000August 27/2000October 1/2000October 25/2000November 26/2000

$ 1.29\dozen$ 1.27\dozen$ 1.27\dozen$ 1.29\dozen$ 1.30\dozen$ 1.30\dozen$ 1.32\dozen$ 1.36\dozen$ 1.36\dozen$ 1.36\dozen$ 1.36\dozen$ 1.36\dozen

$ 1.29\dozen

$ 1.29\dozen

$ 1.29\dozen

$ 1.28\dozen

$ 1.29\dozen

$ 1.29\dozen

$ 1.30\dozen

$ 1.36\dozen

$ 1.36\dozen

$ 1.36\dozen

$ 1.36\dozen

$ 1.36\dozen

AVERAGE $ 1.32\dozen $ 1.32\dozen

CEMA buys back at whichever is the lowest -Producer Price or the COP Price.

RESEAI{CH PROJECT

The funding to .'Determine the Agronomic Effects of Soil Applied Poultry Manure onAru1ual Crop Production" was finally completed in November 2000.

The project is one year behind and with the late start this year all the engineers were ableto do was locate and stake the plots.

Funding of Projects arranged with:

CARDS- Canadian Adaptation & Rural Development in SaskatchewanPAMI- Prairie Agriculture Machine InstituteT AD- Technology Adaptation & DemonstrationSEP- Saskatchewan Egg Producers

PI~OMOTION

Sponsorship> Key sponsor of"Dial a Nutrition Ask a Dictitian for May 2000

~ Provincial Holly sponsor Cor the Cameco Jingle Bcll

Run for Arthritis- the run is held in six (6) locations through out

Saskatchewan-~ The Hcart & Strokc I:oundation CJolr-I'ournamcnt

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44Crack Open A Meal

It was CEMA's back to school promotion. The promotion offered consumers topurchase the new "act Crackin Cook Book", over 115 Eggcellcnt recipes for only $ 9.95.

Saskatchewan produced a commercial that promoted the "Get Crackin CookBook" in front of the egg display showing the shelf hanger and recipe cards.with the cookbook offer.

Billboard Campaign

This is our third year running with the Billboard advertising during the festiveseason. The 2000 festive season we had a new advertisement designed that promoted theversatility and nutritional value of eggs " The Gift of Goodness" a total of 20 Billboard

were used- 2 in Northbattleford, 2 in Yorkton, 8 in Regina and 8 in Saskatoon. TheBillboard campaign ran the same time as CEMA's "Celebtrate the Season".

Saskatchewn applied to CEMA and received co-op funding on the billboard

promotion.

CANADIAN WESTERN AGRIBITION

The Saskatchewan Egg Producers had two display booths, one in Food Fair andthe second in Agri-Ed. This year Food Fair was in the new location to get away from thecrafts.

In Food Fair everyone had their own kitchen unit with I-:ridgc, stove and water.The new location was well received by exhibitors and the public.

Agri-Ed is a hands on display representing the Feather Industry. The display hadchicks hatching, broiler chickens, laying hens in cages and turkey's.

Efforts are underway to expand the area. We had 13,000 students from grade fourto eight go through the display. Unless more space becomes available school attendancewill have to be limited.