Table of Contents

Events and Agenda for Semi-Annual General Meeting .................................................................. 1

Hotel Floor Plan ................................................................................................................................. 2

ABP Plan 2019-2020 ........................................................................................................................... 3

ABP Operations Budget 2019-2020 ................................................................................................... 5

Council and Working Groups............................................................................................................ 7

ABP Delegate Expense Guidelines ................................................................................................... 10

Chair’s Report ................................................................................................................................... 15

Audit Committee Report ................................................................................................................... 16

Governance Committee Report ....................................................................................................... 17

Cow Calf Council Report ................................................................................................................. 18

Cattle Feeder Council Report ........................................................................................................... 19

Communications Report ................................................................................................................... 20

Marketing and Education Report .................................................................................................... 21

Government Relations Report .......................................................................................................... 22

Beef Production Report ..................................................................................................................... 23

Research Report ................................................................................................................................. 24

Canadian Cattlemen’s Association ................................................................................................... 25

Beef Cattle Research Council .......................................................................................................... 27

Canada Beef ........................................................................................................................................ 28

Issues Management Report ............................................................................................................... 29

Report on the 2018 Resolutions ....................................................................................................... 31

Statement of Financial Position ............................................................................................ Back of Booklet

Agenda Alberta Beef Producers

2019 Semi-Annual General Meeting Agenda

Delta Edmonton South Hotel

4404 Gateway Boulevard, Edmonton

Monday June 10th 7:00 a.m. – 8:00 a.m. Auditors Meeting – Executive Board Room

10:00 a.m. – 6:00 p.m. Board of Directors Meeting – Diamond/Emerald Room

6:00 p.m. – 9:00 p.m. Governance Committee Meeting – Executive Board Room

6:00 p.m. – 7:00 p.m. Communications/Marketing Roundtable Dinner – Sapphire Room

7:00 p.m. – 9:00 p.m. Communications/Marketing Roundtable – Diamond/Emerald Room

Tuesday June 11th 7:00 a.m. – 8:30 a.m. Delegate Buffet Breakfast – Imperial Room

8:00 a.m. Registration Opens

8:30 a.m. – 4:30 p.m. General Session – Top of the Inn

8:30 a.m. ABP Operations Update and Review of Plans

Chair and Finance Report

Operations Report and Review of ABP Plans

ABP Regulatory Review

ABP Respect, Violence and Harassment Policy

Delegate In Camera

10:30 a.m. Break

10:55 a.m. Canadian Beef Check-Off Agency Report – Melinda German

11:15 a.m. Public and Stakeholder Engagement Report – Jill Harvie

11:35 a.m. Agricultural Plastics Recycling Pilot Program – Tammy Schwass

11:55 a.m. Election of BCRC Representatives

12:00 p.m. Lunch – Imperial Room

1:00 p.m. WCB and the Agriculture Industry – Boris Makale

1:50 p.m. Beef Cattle Research Council Report – Reynold Bergen

2:10 p.m. Canadian Cattlemen’s Association Report– David Haywood-Farmer

2:30 p.m. Break

2:55 p.m. Canada Beef Report – Michael Young

3:15 p.m. Canfax Market Report – Brian Perillat

3:45 p.m.

4:30 p.m.

5:30 p.m. – 6:30 p.m.

6:30 p.m. – 7:00 p.m.

7:00 p.m. –

Wednesday June 12th 7:00 a.m. – 8:30 a.m.

8:30 a.m. – 10:30 a.m.

Future of Genomics in Canadian Beef Production – Graham Plastow

Adjournment

Dinner – Top of the Inn

Cocktails

Banquet Program

Banquet and Hospitality

Delegate Buffet Breakfast – Imperial Room

Cow Calf Council – Fort McMurray Room

Rules of Procedure

1. In recognition of their contribution to ABP, delegate spouses are welcome to participate in the Semi-Annual

General Meeting. Delegate spouse accommodations and ABP meal functions will be free of charge.

2. Use of cell phones is prohibited when the Semi-Annual is in session. Please turn off all cell phones.

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MAIN FLOOR

GRAND BALLROOM

ROYAL IMPERIAL

I-

2ND FLOORCONFERENCE CENTRE

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Alberta Beef Producers (ABP) Plan – 2019/2020

ABP Vision

A strong and clear voice for cattle and beef producers contributing to a vigorous and profitable beef industry. ABP Mission

To strengthen the sustainability and competitiveness of the beef industry for the benefit of beef producers in Alberta. National Beef Strategy 2015-2020 – Pillars and Goals

1. Beef Demand: Increase carcass cutout value by 15% 2. Competitiveness: Reduce cost disadvantage compared to main competitors by 7% 3. Productivity: Increase production efficiency by 15% 4. Connectivity: Enhance synergies within industry and make positive external connections

ABP Core Strategies

1. Increase domestic and international demand and market access for Canadian/Alberta beef. 2. Ensure long-term sustainable access to the land and water resources of this province for the benefit of beef

producers. 3. Influence government legislation and policy to enhance the competitiveness of Alberta beef producers. 4. Enhance the competitiveness of Alberta beef producers through research and innovation. 5. Engage and involve producers in policy decisions, organizational direction and governance.

Cattle and Beef Industry Priorities

1. Increased export market access 2. Reduced regulatory costs and barriers 3. Increased value for products through branding and differentiation of all Canadian beef 4. Improved communication and information flow along beef supply chain 5. Improved feed grain and forage productivity 6. Better research and development performance for enhanced production efficiency 7. Improved business risk management programs for cattle producers 8. Implement strategies to define and demonstrate the “sustainability” of the beef industry 9. Encourage young producers to join or stay in the cattle industry

ABP Strategic Objectives – 2019/2020

1. Establish productive working relationships with key officials in the new provincial government.

Key Performance Indicators: number and frequency of meetings with Ministers of AF, EP, EDT, and Municipal Affairs; number of meetings and discussions with senior government staff members; actions on issues of priority for cattle and beef producers.

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2. Generate positive government actions on vital grazing lease issues including security of tenure on crownlands, firm commitment to grazing in new and existing parks, and implementation of modernized rentalrate framework.

Key Performance Indicators: continued security of tenure on crown lands; clear indication of commitment grazing in parks and protected areas; recognition of crown lands under grazing dispositions as OECMs; implementation of the Grazing Lease Rental Rate Framework.

3. Use the opportunity provided by the service charge plebiscite results and the 2019 Regulatory Reviewto revitalize ABP structure and operations to make ABP more relevant for producers and increaseproducer engagement with ABP.

Key Performance Indicators: regulation and by-law amendments that address structural issues; evidence of increased collaboration with ACFA; engagement of producers through auction markets; response to refund request form changes;

4. Ensure that investments in research and technology provide Alberta cattle and beef producers withinformation and technology that will support sustainable and competitive operations.

Key Performance Indicators: real benefits of the projects in which ABP and our partners invest; connection between research investments and the National Research Strategy; coordination of research decisions with partners; adoption of new information and technology;

5. Increase the level of knowledge and understanding of the cattle and beef industry among youngconsumers and students (future consumers).

Key Performance Indicators: adoption of ABP education resources by schools; level of interest in Glenbow Ranch and Edmonton Valley Zoo education offerings; growth in support for Alberta Beef among Alberta consumers; engagement of school curriculum decision makers

6. Improve our communications with producers and the public through an enhanced communicationsstrategy with robust measurements of engagement and effectiveness.

Key Performance Indicators: streamlined communications directed at target audiences; evidence of more engagement by producers in our communications; increased attention to ABP messages in public forums;

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Alberta Beef Producers

Operational Budget

For the year ending March 31, 2020

National Policy and Trade Advocacy Programs:

Canadian Cattlemen's Association 1,760,810

U.S. and International Trade Management 30,000

Enhanced Federal Lobbying 35,000

National Governance and Oversight 30,000

Organizational Expenses:

Board of Directors and board appointed reps 125,000

Annual General Meeting 120,000

Fall producer meetings & resolutions policy 90,000

Semi-annual Meeting 72,000

Zone Committees 63,000

Executive Committee 60,000

Annual Report 20,000

Audit Committee 2,000

Governance Committee 2,000

Operational Expenses:

Salaries and benefits, related to operations 615,000

Marketing and Education 316,500

Communications 285,000

Industry Partnerships 230,000

Project Reserve Fund 75,000

Research Committee 88,000

Canfax Membership and Services 53,400

Cow Calf Council 52,000

Sponsorship 40,000

Cattle Feeder Council 20,000

Provincial Advocacy 30,000

Environment, ESA 20,000

Animal Health and Welfare 17,000

Industry Collaborations 10,000

Administrative Expenses:

Rent, office supplies and equipment 400,000

Salaries and benefits 336,000

Legal, audit, and consulting 100,000

Total of cash expenses 5,097,710

Non Cash expenses

Amortization of furniture and equipment 20,000

Total expenses 5,117,710

Capital asset budget 10,290

Subtotal 5,128,000

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ABP Councils, Standing Committees and Working Groups

Board of Directors • retains responsibility for overall ABP policy, government advocacy, and financial decisions and

direction

Councils and Committees in ABP By-laws Cow Calf Council Chair: Tim Smith

• responsible for addressing issues of importance to the sector and making policy recommendations to the Board

• responsible for Business Risk Management as it relates to the sector and Wildlife Damage and Compensation

• small project budget for specific research activities Cattle Feeder Council Chair: Ken Stanley

• responsible for addressing issues of importance to the sector and making policy recommendations to the Board

• responsible for Business Risk Management as it relates to the sector • small project budget for specific research activities

Governance Committee Chair: Howard Bekkering

• responsible for oversight on the governance of ABP • develop and make recommendations to the Board and Councils on matters of governance • chair appointed by Board, one member appointed by each council, one non-delegate member

Audit Committee Chair: Howard Bekkering

• responsible for oversight on the financial management and auditing of ABP • review and provide guidance to the Board on financial reporting, accounting systems, internal

controls and audit processes • chair appointed by Board, one member appointed by each council, one non-delegate member

Operational Committees

These committees are created at the request of the staff member in charge of the operation

Research Committee Chair: Fred Lozeman

• responsible for establishing priorities and providing funding for research projects • coordinate research projects with councils and committees • coordinate research projects and funding with other research organizations and funding agencies • one member from each council

Committee Membership

• Committee chairs to be appointed by Board of Directors or a council. • Some committee members may be specified, but committee size will initially be one delegate per

zone plus the chair. • Zone committees to recommend interested delegates to serve on a committee. • Zone representation on committees is important, but committees do not necessarily need one

member from each zone

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• Committee chairs may seek additional members if the committee does not have sufficient members• The Board may need to limit the representation from zones to keep the committee or working group

at an effective size• Final decisions on committee membership will be made by the Board• Committees will initially be allocated enough funding to cover committee operations and small

projects. The majority of project funding will be held until committees can meet, set priorities, andmake project funding requests. Project funding decisions for the fiscal year will be made by theBoard at a meeting in February or March.

Working Groups – New Roles and Responsibilities

Proposed New Structure • The Board of Directors and the Councils have the ability to appoint sub-committees or working groups

to address specific issues and provide recommendations for ABP policies and actions related to theseissues.

• Eliminate the current standing committees for Environment and Wildlife with the responsibilities ofthese committees directed to the Cow Calf Council.

• Retain the Research Committee because it is providing effective direction to Karin Schmid and ABP onresearch priorities and projects.

Purpose of the New Structure • Make the ABP Councils more effective in its recommendations to the Board of Directors and its role in

ABP direction• Provide more clear direction on the roles and responsibilities of sub-committees and working groups• Make our sub-committees and working groups more responsive to issues and more efficient and

effective in addressing these issues• Provide more productive and fulfilling work for ABP delegates through participation in focused and

faster moving working groups

Sub-Committees and Working Groups • The creation of a sub-committee or working group would be the result of an issue being identified by the

Board of Directors, a Council, or by individual delegates, producers, and staff members. The Board orCouncil would need to be satisfied that the issue warrants the investment of time and expenses in a sub-committee or working group to address the issue

• The sub-committee or working group would be responsible for considering the issue and providingrecommendations for ABP policies and actions to address the issue. These recommendations would beprovided to the body that created the sub-committee or working group. Upon completion of theserecommendations, the sub-committee or working group would be disbanded

• Most specific issues would be best addressed by a relatively small, efficient, and effective workinggroup, but there may be longer term issues that would require a somewhat larger and longer serving sub-committee

Membership on Sub-Committees and Working Groups • The ABP By-laws allow the Board and Councils to appoint standing or special committees. The sub-

committees and working groups discussed in this document would represent special committees underthe by-laws

• The Board or Councils have the authority to appoint a chair of the special committee• The Board or Councils, in consultation with the special committee chair, may appoint the special

committee members from ABP delegates, ABP directors, other eligible producers, or other members ofthe public. People outside of ABP may be able to provide valuable knowledge and expertise to the work

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of the special committee. Zone directors can assist in the process of identifying delegates who would be willing and able to contribute to the success of the special committee

• The ABP Executive members are ex-officio, non-voting members of all committees Sub-Committee and Working Group Roles and Responsibilities • The Board or Council that creates a sub-committee or working group must provide clear direction

regarding the mandate, expected outcomes, and time frame of work for the sub-committee and working group

• The ABP Executive Director will be responsible for providing staff support to the sub-committees and working groups if needed or required

• The ABP Office Administrator will be responsible for keeping records of sub-committee and working group membership and activities

• All recommendations from sub-committees and working groups will be forwarded to the Council and then Board for approval and action

Current and Near Future Sub-Committees and Working Groups • Marketing and Communications Roundtable – a group of delegates convened at the Semi-AGM to

provide direction to the Marketing and Communications Managers over priorities and actions in these areas.

• Castle Park Working Group – prepared a letter to Environment and Parks and working on more detailed response

• Safety Net Sub-Committee – consider BRM aspects of the next agricultural policy framework and continue work on forage and pasture insurance

• Wildlife Policy Working Group – help develop ABP wildlife policy beyond simply demands for more compensation

• Environmental Stewardship Award Working Group – oversee the application and judging process for the ESA.

• Ecosystems Services Working Group – to enhance existing ecosystem services programs and support the development of new sources of ecosystem services revenue for producers that will recognize and improve the management of ecosystem services.

• Landowner Special Licenses Working Group – challenge and provide alternatives to the recommendation that the current system of issuing landowner special licenses for antlered mule deer be discontinued.

• Agricultural Mentorship Working Group – work in cooperation with post-secondary institutions to encourage students to learn about and participate in the agriculture industry.

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Alberta Beef Producers Delegate Expense Guidelines All daily allowances or expense claims must be received by the office within THREE (3) months of being incurred in order to be eligible for reimbursement. Anything over this time period will NOT be paid. As well, you will be asked to complete your expense claims effective March 31 which is our year end.

These guidelines apply with respect to payment of honoraria and reimbursement of expenses to producers elected as delegates and directors of Alberta Beef Producers and for work done as a delegate and director of Alberta Beef Producers with respect to ABP activities.

Producers and delegates elected or appointed to represent Alberta Beef Producers on national cattle organizations, on any provincial organization or on any national or provincial committee or task force are eligible for honoraria and reimbursement of expenses in accordance with the guidelines in place for these other organizations.

General Rule When claiming an honorarium or reimbursement for expenditures the onus is on the delegate to exercise personal discretion in determining what constitutes a reasonable amount. Please note that each delegate may be asked to join one or more Council, Committee or working group for which Alberta Beef Producers will reimburse expenses and pay honorarium. Delegates are welcome to visit other ABP meetings or government meetings at their own expense.

Delegates Delegates are eligible for payment of honoraria and reimbursement of expenses while they hold office as a delegate of ABP. The terms of office are as follows:

1. The term of office of a zone delegate and zone cattle feeder council delegate commences on theannouncement of the results of the elections held at the annual zone meetings and expires on announcementof the results of the elections in the second year following the term commenced.

2. The term of office of Cattle Industry Council delegates commences at the beginning of the day onNovember 15 in the year they are elected and expires at the end of the day on November 15 in the secondyear following the year the term commenced.

Directors Directors are eligible for payment of honoraria and reimbursement of expenses while they hold office as a director of Alberta Beef Producers. The term of office of zone directors, directors at large, Cattle Feeder Council and Cow Calf Council Directors commences on the directors being declared elected at the Annual General Meeting and expires on the directors being declared elected at the following AGM.

Honorarium Honorarium is paid in recognition of the costs of being away from home; including both meeting and travel time. Honorarium is paid at the following rates:

Board Chair $250 per day (plus a $12,000 annual payment) Vice-Chair $225 per day (plus a $6,000 annual payment) Finance Chair $225 per day (plus a $6,000 annual payment) Past Chair $185 per day (plus a $6,000 annual payment) Board Members $185 per day Delegates $150 per day

Delegates are eligible to receive honorariums: All delegates for attendance at the Annual, Semi Annual, or Special General meetings; For Council, Committee or working group members when attending the Council, Committee or working group meetings that they have been approved by the board to sit on;

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At the discretion of the chair, a half-day honorarium for participating in a conference call of a council, committee, or working group; For the members of the Board of Directors for attendance at board meetings; For fulfilling role as in-zone coordinator, and For third party meetings when asked by the Board of Directors or the Committee or Council Chair to represent Alberta Beef Producers.

Honorariums are not available for: zone meetings; election meetings; other in-zone activities; a few events as determined by the Board of Directors.

Reimbursement of Expenditures and Mileage Claims Delegates may claim reimbursement for expenditures that were incurred:

for attendance at the Annual, Semi Annual, or Special General meetings; for attendance at Council, Committee or task team meetings; for attendance at board meetings; for attendance at zone meetings; for attendance at election meetings; for fulfilling role as in-zone coordinator; and for third party meetings when asked by the Board of Directors or the Committee Chair to represent Alberta Beef Producers.

Note delegates are reimbursed their expenses to attend the election meetings as they are completing their role as an elected delegate. Non-delegate candidates attend the fall meetings at their own expense.

Accommodation ABP will cover the cost of lodging that is necessary while representing the organization. For Calgary meetings, our hotel of choice is the Port of Call, who includes a voucher for a buffet breakfast. Delegates are asked to make an economical selection when choosing their accommodations outside of Calgary. Spouses are guests of ABP at the Annual and Semi-Annual meetings. ABP does not cover any charges incurred for mini-bars or pay-per-view movies.

Incidental Costs ABP will reimburse costs associated with the attendance at meetings or carrying out duties on behalf of ABP such as parking, taxi, meeting registration, and so forth.

Meals ABP will cover the cost of meals that are necessary while representing the organization. ABP will reimburse reasonable meal expenses incurred when traveling to meetings. If the delegate is being accompanied on the trip by someone other than an ABP representative, then the organization will only cover the delegate’s share of the meals. If a meal chit is for more than one delegate, you are required to list all participants on the restaurant chit who are included on the expense claim.

Telephone Calls Any phone calls made in carrying out the duties of a delegate will be reimbursed. In addition, when ABP business requires a delegate to be away from home, ABP will cover reasonable phone charges incurred to communicate with the home operation.

Travel ABP will reimburse delegates for travel done while performing activities on behalf of the organization at the current per kilometer rate as established by the Board of Directors. This allowance is designed to cover all costs associated with the operation of a vehicle.

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It is acceptable to choose commercial air travel or bus service as alternate modes of transportation. However, individuals are encouraged to utilize the most economical means of travel. Allowances must be given for the constraints of time and accessibility when determining what is reasonable.

Attendance by a Council or Committee member at a meeting within the province, other than a Council or Committee meeting, must have the approval of the Council or Committee or the chair prior to attendance. Any travel outside the province must be approved by the board executive prior to the trip being taken.

Expense Claim Forms Expense sheets are provided by the ABP office. A copy of the claim being paid will accompany the payment along with a blank expense form for the next submission. Expense claims can be sent to the office via fax, for claims which do not have a receipt to be affixed, or by Canada Post.

Expense codes are located on the expense claim form. Delegates are asked to code their expense form to ensure that expenses are allocated to the proper budget line. Delegates are to code their expenses to the Council or Committee that they have been assigned to. In circumstances when a delegate is asked to attend a Council or Committee meeting other than the one they have opted to be a member of, the delegate must indicate on their expense claim “That Chair XX had asked them to attend this meeting”. For meetings other than ABP meetings, the more information provided regarding the meeting attended or the committee that has asked you to attend, the better to help ensure that the coding of the expense is correct.

Processing of the expense claim All honorarium or expense claims must be received by the office within THREE (3) months of being incurred in order to be eligible for reimbursement. Anything over this time period will NOT be paid.

All expenditure claims must be accompanied by an original receipt. This is necessary so that ABP can claim the GST paid. The only exception to this rule occurs when ABP is only paying part of the bill, for example home telephone charges. It is then acceptable to submit a photocopy of the bill provided you do not request reimbursement of the GST portion. When paying with a personal credit card, the invoice or cash register receipt is the document that is most beneficial to us; however, the signed credit card slip will be accepted.

When claiming for attendance at third party meetings on behalf of ABP you are asked to include a copy of the meeting notice or a copy of the meeting minutes. This will enable the expenses to be immediately associated with the specific meeting, thus accelerating the approval process. It will take approximately two weeks from the time claims are received by the office until a cheque is mailed. However, this process will be delayed if the necessary receipts are not included with the claim.

Annual reports of each delegate and directors’ expense accounts will be prepared and made available.

If you have any questions or encounter a situation that you do not know how to handle, please contact the Controller.

Alberta Beef Producers Expense Guidelines For ABP Representatives at the National Organization These guidelines apply with respect to payment of honoraria and reimbursement of expenses to producers elected as a delegate or appointed to represent ABP on national cattle organizations, on any provincial organization or on any national or provincial committee.

CCA, CB, and BCRC: The term of office for the CCA positions is consistent with the CCA March year end. The ABP representatives are elected at the ABP AGM and officially a CCA delegate in March at the CCA AGM. Thus, the representative may claim honorariums after their term as an ABP delegate ends in December as the commitment to CCA will continue until the following March. Please note that CCA is responsible for the representatives’ expenses.

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The ABP Board of Directors appoints a representative to CB Board of Directors at their Annual Forum. CB pays all expenses and honorarium for this representative. ABP also sends ten delegates to the Annual Forum and will pay the expenses and honorarium for these delegates.

The ABP Board of Directors appoints representatives to BCRC consistent with their June year end. BCRC is responsible for the representatives’ expenses while ABP pays the honorarium. Thus, the representative may claim honorariums after their term as an ABP delegate ends in December as the commitment to BCRC will continue. Once the term as a representative ends, ABP does not pay honorarium or cover expenses for past delegates or expenses whose services are required by the national organization unless arrangements are made with the ABP executive prior to the expenses being incurred.

Transitional Provision During the three months following the ABP Annual General Meeting, it may be necessary to occasionally use the services of past delegates or directors to achieve ABP objectives, ensure continuity in a project or activity or to provide for the transition of responsibilities, even though they may be wiped out or have not run for re-election. In such circumstances, ABP will reimburse the past delegate for his or her expenses plus compensate for time at the delegate honorarium rate. This will apply in cases where ABP or an ABP Council or Committee deems it necessary to retain a past delegate’s services and must be approved in advance by the Chair or the Board of Directors.

In circumstances where a long-term arrangement for a past delegate’s services is necessary due to his or her unique knowledge or background, the appropriate Committee Chair would negotiate a daily allowance for the services provided. See the Non-Delegate Expense Guidelines for additional information.

Alberta Beef Producers Non-Delegate Expense Guidelines From time to time, non-delegates are asked to perform services or give their time for the benefit of Alberta Beef Producers (ABP). In these circumstances ABP would compensate by paying a daily allowance and reimburse expenses based upon the following.

General Rule When claiming an honorarium or reimbursement for expenditures the onus is on the delegate to exercise personal discretion in determining what constitutes a reasonable amount.

Daily Allowance A daily allowance is paid in recognition of the costs of being away from home; including both meeting and travel time. The current level of compensation is $150 per day and a half-day rate will be paid for participating in a conference call on behalf of ABP.

Reimbursement of Expenditures and Mileage Claims Accommodation ABP will cover the cost of lodging that is necessary while representing the organization. Representatives are asked to make an economical selection when choosing their accommodations. ABP does not cover any charges incurred for mini-bars or pay-per-view movies.

Incidental Costs ABP will reimburse costs associated with the attendance at meetings or carrying out duties on behalf of ABP such as parking, taxi, meeting registration, and so forth.

Meals ABP will cover the cost of meals that are necessary while representing the organization. ABP will reimburse reasonable meal expenses incurred when traveling to meetings. If the non-delegate is being accompanied on the trip by someone then the organization will only cover the non-delegate’s share of the meals.

Telephone Calls

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Any phone calls made in carrying out the duties of a non-delegate will be reimbursed. In addition, when ABP business requires a non-delegate to be away from home, ABP will cover reasonable phone charges incurred to communicate with the home operation.

Travel ABP will reimburse delegates for travel done while performing activities on behalf of the organization at the current per kilometer rate as established by the Board of Directors. This allowance is designed to cover all costs associated with the operation of a vehicle. It is acceptable to choose commercial air travel or bus service as alternate modes of transportation. However, individuals are encouraged to utilize the most economical means of travel. Allowances must be given for the constraints of time and accessibility when determining what is reasonable.

Travel outside of the Province Any travel outside the province must be approved by the board executive prior to the trip being taken.

Expense Claim Forms Expense sheets are provided by the ABP office. A copy of the claim being paid will accompany the payment along with a blank expense form for the next submission. Expense claims can be sent to the office via fax, for claims which do not have a receipt to be affixed, or by Canada Post. Expense codes are located on the expense claim form.

Processing of the expense claim All daily allowances or expense claims must be received by the office within THREE (3) months of being incurred in order to be eligible for reimbursement. Anything over this time period will NOT be paid. All expenditure claims must be accompanied by an original receipt. This is necessary so that ABP can claim the GST paid. The only exception to this rule occurs when ABP is only paying part of the bill, for example home telephone charges. It is then acceptable to submit a photocopy of the bill provided you do not request reimbursement of the GST portion. When paying with a personal credit card, the invoice or cash register receipt is the document that is most beneficial to us; however, the signed credit card slip will be accepted.

It will take approximately two weeks from the time claims are received by the office until a cheque is mailed. However, this process will be delayed if the necessary receipts are not included with the claim. If you have any questions or encounter a situation that you do not know how to handle, please contact the Office Administrator or the Controller.

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On behalf of the Board of Directors, I welcome everyone to the 2019 Semi-Annual General Meeting. I hope some rain has found all of you and you’re well on your way to a profitable grazing season.

Since we last gathered as a whole delegate body, several smaller groups have convened to consider the direction of our organization and how we will move forward under a permanent refundable service charge model. While we did see a small drop in retained check-off, the vast majority of producers support what ABP does for the industry. However, the message has been clearly sent, and received. There is a strong desire to change how we do what we do.

Over the winter, we took a close look at our priority activities to ensure that they are still important for the industry. The producers who are engaged with ABP and the industry still support our work in the four priority areas of advocacy (government relations and policy), research (production and technology transfer), promotion (marketing and education), and communications (focused on producers, consumers, the public, and governments). These core activities bring the most benefit for the industry and the greatest return to producers for the investment of their check-off dollars. We are not looking to fundamentally change the business we do, but rather looking at changing how we do business.

We saw great value in our collaboration with the Alberta Cattle Feeders’ Association (ACFA) on the non-refundable service charge

matter and we are committed to continuing and strengthening this collaboration. We worked together with ACFA on our key messages for the new government in Alberta and we will now do almost all of our government relations work together. We have also looked at further opportunities for collaboration among our respective staff members to increase efficiency and reduce duplication of efforts.

We have not stopped looking for more funding to support our priority work. We have heard that some producers who take large refunds would consider contributing money from their refunds to support the Canadian Cattlemen’s Association (CCA) assessment that is paid by ABP if the money is clearly directed to CCA. This would make a significant difference in our budgeting because the CCA assessment of 53 cents per marketing actually turns into 82 cents per marketing when refunds are included in the calculations. We have also been discussing the possibility of having ABP and ACFA contribute funds to start the Alberta Beef Industry Development Fund (ABIDF) and invest the funds in a project that might encourage producers to make further contributions from refund requests to the ABIDF. We are making the appropriate changes to our Service Charge Refund Request Form and our financial statement format to reflect these potential contributions.

The consideration of ABP structure and operations is timely because this is the year when we do our Regulatory Review, the five-year review of the regulations and by-laws that govern ABP. During this review, we will be looking at the composition of our delegate body, the future of our sector councils, the timing and location of general meetings, and the timing of our fall meetings. A small working group is developing a proposal that will be discussed and refined by the delegates at this general session. We will then take a proposal to fall meetings for

CHAIR REPORT

discussion with producers and make final decisions on regulations and by-law changes at the AGM in December. Our intent in making changes to our structure and operations would be to create a leaner, more efficient ABP that could effectively address the issues of importance for producers and generate more interest among them in the work we are doing on their behalf.

We are talking about significant changes this year and changes can make some people uneasy. However positive changes can invigorate an organization and create enthusiasm among its owners and customers. The cattle and beef producers of Alberta are both the owners and the customers of ABP and the changes will be aimed at gaining their support. The delegates, directors, and staff of ABP will be committed to making and implementing the changes that producers want.

Regards,

Charlie Christie, ABP Chair

Kelly Fraser, Vice ChairMelanie Wowk, Finance Chair Garth Porteous, Zone 1Sheila Hillmer, Zone 2Chris Israelson, Zone 3Jesse Williams, Zone 4Tim Sekura, Zone 6Colin Campbell, Zone 7Gordon Graves, Zone 8John MacArthur, Zone 9Brodie Haugan, Director at large Fred Lozeman, Director at large Assar Grinde, Director at large Ken Stanley, CFCTim Smith, CCC

CHARLIE CHRISTIEChair

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Audit committees are viewed as a critical component of the overall corporate governance process. The ABP Audit Committee was appointed by the Board of Directors to assist the board in fulfilling its oversight role and to help discharge its fiduciary responsibilities. The primary tasks of the Audit Committee are to:

• Identify and monitor themanagement of principle risksthat could impact financialreporting.

• Monitor the integrity of thefinancial reporting process andthe system of internal controlsregarding financial reporting andaccounting compliance.

• Monitor the independence andperformance of the externalauditors.

• Provide an avenue ofcommunication between theauditor, management, and theBoard of Directors.

The Audit Committee is comprised of:One member appointed by the Board of Directors;

One member appointed by the Cattle Feeder Council;

One member appointed by the Cow Calf Council; and

One non-delegate member appointed by the members of the Audit Committee.

The Audit Committee has reviewed and considered ABP’s internal control and risk management procedures as well as the financial reporting and disclosure procedures. The committee will meet with the auditors to review the final audited financial statements just prior to the commencement of the ABP Semi-Annual Meeting.

The members of the Audit Committee are dedicated to the beef industry in Alberta and have demonstrated that commitment through a willingness, not only to offer their time and hard work for the greater good of the industry, but more importantly, to offer it with enthusiasm and good humour.

Regards,

Howard Bekkering, Chair

Assar Grinde, Board of DirectorsMartin Clausen, Cow Calf Council Glen Kummer, Cattle Feeder Council

AUDIT COMMITTEE

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The ABP Governance Committee is one of two oversight committees prescribed in the ABP by-laws and is responsible for oversight of the governance policies and practices of the organization. In this role, the committee reviews ABP corporate governance guidelines and practices, monitors trends and best practices in corporate governance, and makes recommendations to the Board of Directors regarding appropriate changes in corporate governance. These changes could affect the governance provisions of the ABP Plan Regulation and ABP by-laws, as well as the board’s policies and practices.

The Governance Committee was established by the Board of Directors and currently consists of four members supported by the Executive Director. Three members are appointed by the Board, Cow Calf Council, and Cattle Feeder Council, respectively. The fourth member is appointed by the committee and is an independent person from outside the organization, not directly involved as a delegate with ABP. This year, the committee appointed Howard Bekkering, a past ABP delegate and director, as the non-delegate member of the committee. The committee members also recommended that he become chair of the Governance Committee, which was approved by the Board of Directors.

Over the past eight years, the Governance Committee has completed a thorough review of ABP governance policies and practices, as well as developing a number of important and useful governance documents. The committee has prepared documents describing delegate, director, and zone committee responsibilities. The

committee prepared the Code of Conduct and Conflict of Interest Policy that each director signs every year, as well as a Concerns and Complaints Procedure that the board approved in 2012. The committee put a significant amount of effort into the development of the ABP Governance Manual that was approved at the Annual General Meeting in December 2013. In 2017, the committee completed a thorough review of the Governance Manual and had the revised manual approved by the Board of Directors.

The role of the Governance Committee evolved as the Board of Directors has placed more focus and attention on governance. The Board started including a session on governance and policy on every board meeting agenda. This past January, the directors participated in a full afternoon session on governance with Maggie Kiel of MNP. During the session, Maggie and the directors identified gaps in ABP governance policies that need to be addressed. Rather than asking the Governance Committee to address these gaps, a small working group was established to work with Maggie.

In March, the group met with Maggie and did a thorough review of the ABP Policy Manual. While the Governance Manual was seen as a good foundation for the governance of the organization, the “Means” policies section of the Policy Manual was missing a number of critical policies and contained a number of policies that were more statements than actual policy. They started the process of developing key policies that ABP requires and will finish the process this summer. The Governance Committee and the Board of Directors will then review and approve these policies.

One area of significant activity for the Governance Committee in the past year has been developing a policy addressing harassment in our workplace. This was identified as a gap in ABP policies by the Governance Committee in 2017 and

GOVERNANCE COMMITTEE

an issue occurred that fall emphasizing the need for such a policy. At a meeting before the 2018 Semi-AGM, the Governance Committee reviewed harassment policies from industry and government connections and identified the elements that should be included in the ABP policy. In late November, the Governance Committee held a meeting and started to work on the wording of the policy. Former committee member, Garth Porteous, provided valuable insights to the committee on the format and wording of the policy.

This spring, a draft ABP Workplace Respect, Violence, and Harassment Policy was reviewed by the new Governance Committee and the revised draft was sent to the Board of Directors for comments and suggestions, and we have received their recommendations. These recommendations will be incorporated into the policy and we expect it to be approved by the Governance Committee and the Board of Directors before the Semi-AGM, and then presented to the delegates at this meeting.

With the Respect, Violence, and Harassment Policy completed, the Governance Committee will be working on enhanced delegate, director, and designated representative responsibilities, a code of conduct for delegates, and by-law amendments allowing for removal of a delegate. Governance is a journey and the Governance Committee is committed to providing guidance for ABP along that journey.

Regards,

Howard Bekkering, Chair

Fred Lozeman, Board of DirectorsJodi Flaig, Cow Calf CouncilCraig Lehr, Cattle Feeder Council

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addition, we hope this pilot project could include a verification course to evaluate potential kills and address communication issues between livestock owners and Fish and Wildlife officers.

The Safety-Net Subcommittee has developed several recommendations and priorities for AFSC to improve their forage, pasture, and production insurance programs. These recommendations include being able to base the hay insurance program on individual moisture coverage, improving the accuracy of farm precipitation determination, developing a “feed-need” production insurance product, and other improvements. The committee has also reviewed proposed improvements to the federal AgriStability program and is supporting CCA’s recommendations to eliminate the Reference Margin Limit and allow for more eligible expenses like on-farm feed production. A council member participated in the Drought and Excess Moisture Advisory Group, which is an Alberta government supported advisory committee that addresses areas of extreme drought or flooding and creates awareness for disaster support needed in those areas.

The Ecosystem Services (ES) Working Group will continue to advocate for recognizing the value of ecosystem services provided by beef producers for the benefit of the environment, wildlife, and Albertans. The group will be exploring various ways to capture value such as providing feedback on carbon credit protocol for converting annual cropland to pastures, or for avoiding conversion of native grasslands. The group just completed a review of the draft memorandum of understanding (MOU) with Ducks Unlimited to recognize how we can collaborate on environmental stewardship advocacy. Lastly, it is with a heavy heart that I recognize the passing of Heinz Lemmer, one of the ES working group’s most active and passionate members. Heinz was truly a strong advocate for recognizing the value of ecosystem services provided

by beef producers and a strong supporter of environmental stewardship. He was an exceptional person and friend, and he will be sorely missed.

The CCC also struck another working group (Cull Cow Working Group) to address how we can capture value from cows that may be unfit to travel but still hold value, such as an animal with a broken leg. This group will potentially have a recommendation for a government regulation change by the end of the year.

We are also pleased that Alberta Agriculture and Forestry has continued to offer the Cow-Calfenomics workshops, which we supported again in January 2019. The Cow-Calf Extension Working Group will continue to assist the Alberta government in developing these important workshops for beef producers and youth.

In addition to our committee work, members of the CCC also participate in many external organizations and advisory committees. For example, we continue to support representation on eight regional watershed groups throughout the province and designate members to sit on the Cows and Fish board, the Endangered Species Conservation Committee, the Agri-Environmental Partnership of Alberta, and the Alberta Forage Industry Network. Participation in these other groups continues to be important to ensure the voice of beef producers is heard and that any policy developed is beneficial to beef producers, or has minimal impact.

Sincerely,

Tim Smith, Chair

Kevin Stopanski, Zone 1Shane Hansen, Zone 2Shawn Freimark, Zone 4Katlyn Benedict, Zone 5Kolton Kasur, Zone 6Martin Clausen, Zone 7Emil Dmytriw, Zone 8Mike Nadeau, Zone 9Jodi Flaig, Member-at-LargeKody Traxel, Member-at-LargeBrodie Haugen, Board Representative

The Cow Calf Council (CCC) has seven new members this year bringing renewed energy and ideas to the council. We are fortunate to have keen interest in the council and have been quite active this year.

One of the first tasks of the council was to review and update the Terms of Reference. It was decided that the council would continue to work on key issues and opportunities of importance to cow/calf producers in the areas of Business Risk Management (BRM) programs through the Safety-Net Subcommittee, environmental stewardship through the Ecosystem Services Working Group, and wildlife-landowner interactions through the Wildlife Working Group. The CCC will continue to work on specific issues as directed by the ABP Board of Directors. To complement the Terms of Reference, the CCC developed a 2019-2020 Workplan. This provides a clear roadmap of goals for the year and will help track progress, outcomes, and other gaps that may need to be addressed.

The Wildlife Working Group has been working closely with the Waterton Biosphere Reserve Association and Alberta Environment and Parks to develop an informal Beef Industry-Government Wildlife Working Group. This group strives to address the issues surrounding increasing conflict between livestock and predators. The group has drafted a pilot project proposal for two regions in Alberta that includes implementing best management practices developed by the Waterton Biosphere group to reduce conflict and test their improved predator compensation model when depredation occurs. In

COW CALF COUNCIL

TIM SMITHCCC Chair

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competitiveness assessment of our industry to inform our advocacy work with the new government. We hope the study will identify key areas where we should be seeking legislative and policy changes that will benefit cattle and beef producers.

ABP and ACFA are also supporting a group of cattle feeders across Alberta who are working to find a practical solution for winter manure management in feedlots. Although the Agricultural Operation Practices Act (AOPA) generally does not allow feedlot operators to spread manure on frozen or snow-covered land, these feeders believe there are good environmental, management, and animal health reasons for cleaning pens and spreading manure during the winter. They have participated in a three-year Alberta Agriculture and Forestry pilot project assessing winter manure management and the project has been renewed for another year. Not enough data has been provided for the government to change its policy on this matter yet. However, we hope to see a policy soon allowing producers to submit nutrient management plans that include this practice on land where there would be no adverse environmental effects.

Cattle feeders and all other operators of confined feeding operations (CFOs) have great concerns about recent actions taken by rural municipalities in the areas of taxation and development policies. Many of these municipalities are facing severe infrastructure (roads and bridges) challenges and are looking for ways to raise more revenue and restrict CFO development in their municipalities. The Lethbridge County business tax on CFOs, which costs feedlots a substantial amount of money, is now being challenged by a group of cattle feeders at the Supreme Court of Canada. We are already hearing about other municipalities considering a similar tax on CFOs in their areas. We are also seeing a number of municipalities including significant

CFO exclusion zones in the Municipal Development Plans.

ABP and ACFA are working with our partners in the Intensive Livestock Working Group (ILWG) to address the issues affecting the relationship between CFOs and their neighbours and municipal governments. These issues are a primary cause of the actions against CFOs taken by rural municipalities. The ILWG has submitted a government funding proposal for a Building Public Trust in the Confined Feeding Industry project. ABP and ACFA have been trying to convince the Government of Alberta to improve the assessment of agricultural land and agricultural operations in order to create a more equitable system of municipal taxation that would eliminate unfair business taxes. We believe that responsibility for siting and approval of CFOs should remain with the Natural Resources Conservation Board under AOPA and not be unduly affected by Municipal Development Plans.

The Cattle Feeder Council has reviewed our funding for the ILWG after a loss of government funding that meant the industry must fund it ourselves. We still support the ILWG but are not sure that the current level of funding is necessary or affordable.

Sincerely,

Ken Stanley, Chair

Craig Lehr, Zone 1Jimmy Nelson, Zone 2Walt Suntjens, Zone 4Cam McLerie, Zone 5Cecil Andersen, Zone 6George L’Heureux, Zone 8John MacArthur, Zone 9Jeff Havens, Zone 3 at largeGlen Kummer, Zone 7 at largeTim Sekura, Board of Directors

The ABP Cattle Feeder Council (CFC) was created to provide a forum for discussion and recommendations on issues of particular importance to the cattle feeding sector of our industry. The mandate of the Cattle Feeder Council is to provide recommendations to the Board of Directors on policy and strategic direction related to the sector. The Alberta Cattle Feeders’ Association (ACFA) is a membership organization that provides representation for a significant number of large cattle feeders in Alberta, but the Cattle Feeder Council has also provided ABP with effective representation of the cattle feeding sector, particularly for those feeders who are not members of the ACFA. With ABP and ACFA reaching an agreement on increased collaboration between the organizations and a commitment to work closer together on issues of common interest, the role of the ABP Cattle Feeder Council may change in the future. However, the council remains active now and held a productive meeting in late March to consider a number of important issues.

One area where ABP and ACFA already collaborate is funding for a major study, conducted by Serecon Inc., on the competitiveness of the beef industry in Alberta. ABP, with support from ACFA, funded a large study on competitiveness by Informa Economics in 2006 and NCFA later funded a smaller study by Noblepath in 2016. With a provincial election this year, both provincial groups thought it was important to have a current

CATTLE FEEDER COUNCIL

KEN STANLEYCFC Chair

19

ABP communications are focused on our 2019 strategic objective to improve our communications with producers and the public through an enhanced communications strategy with robust measurements of engagement and effectiveness. Following the plebiscite vote, we took time to review our communications initiatives and reflect on the lack of producer engagement. As budgets were established moving into the 2019-2020 fiscal year, our communications department decided to make some adjustments and focus this year on attaching concrete measurables to our programs.

An external review of our communications plan was completed, and a decision was made to conduct an audit of our social media accounts and create a dashboard for measuring the reach and engagement of our communications tactics. This will help us establish which tactics are resonating with producers. At the time of writing, the dashboard was in the final stages of development. Measuring our impact will also allow us to communicate the value of check-off dollars invested in keeping producers informed about the industry. In order to make room in the budget for new initiatives, the Grass Routes newsletter will now go out twice a year as winter and summer issues.

After the launch of our redesigned website, some of our other communications tools needed an update to fit with the All for the Beef branding. The summer issue of our Grass Routes newsletter will have a new look to it and the Cattle Country

radio spot is in the process of a script update. A decision was made by the Board of Directors to quit mailing out the ABP Annual Report. The report will be sent to our email list, on our website and social media, available at fall meetings and by request.

The Global Roundtable for Sustainable Beef (GRSB) hosted the second Communicators Summit in May. The summit brought together communicators from 12 countries to discuss issues facing the beef industry and workshop global messaging that is applicable to the entire beef value chain. There was a lot of conversation around the need to simplify our message to the public and how to be a trusted source of information.

The Young Guns Contest for youth ages eight to 21 involved in Alberta’s beef industry has closed and entries will be judged at the communications and marketing roundtable at this meeting. Participants were asked to tell us how cattle and beef production has impacted their lives and future, through some form of communication tool. We received a record number of submissions this year and the top three selected will be awarded $1,000 for first prize, $500 for second and $250 for third.

The 2019 Environmental Stewardship Award (ESA) recipient was announced in December at the ABP Annual General Meeting. The Radau family with Coulee Crest Farm in Red Deer County were this year’s award recipients. Each year, ABP recognizes an operation that demonstrates leadership in environmental stewardship – one that contributes to the land while improving productivity and profitability. You can learn more about Coulee Crest Farm and the award on our website at www.albertabeef.org/producers/environmental-stewardship-award. Nominations for the 2020 ESA are open until July 15 and delegates are strongly encouraged to nominate someone they know who is exceeding expectations in environmental stewardship and whose management

COMMUNICATIONS REPORT

practices should be recognized and celebrated. Judging and filming the award video will take place in September and the recipient will be honoured at our 2019 Annual General Meeting.

The fourth Canadian Beef Industry Conference (CBIC) will take place back in Calgary on August 13-15 at the BMO on Stampede Park. This year the conference theme is Securing our Future and features two keynote speakers: Timothy Caulfield and Karl Subban. The pre-conference tour is hosted by Alberta Beef Producers and other highlights include the popular Beef Cattle Research Council Bov-Innovation sessions, an international panel discussion on trade, live cattle demonstrations and ample networking opportunities. You can see the full program and register at canadianbeefindustryconference.com.

ABP is always working towards better communications with producers. Tell your neighbours, friends or someone sitting beside you at the coffee shop that they can sign up for our weekly news updates online at www.albertabeef.org/producers/newsletter. Signing up means you will also receive our Grass Routes newsletter in your inbox, which saves money and resources. Our Twitter account is connected to a strong community of beef enthusiasts who are always sharing information about the industry, their love of Alberta Beef and agriculture. You can find us on Twitter @albertabeef and we are on Instagram @alberta.beef. You can also like our Facebook page @ABBeefProducers and be sure to comment on and share our posts.

Tune into Cattle Country with Jim Fisher every Wednesday on radio stations all over the province. You can read our monthly industry news advertorials in Alberta Beef Magazine or Alberta Farmer Express, and our next Grass Routes newsletter will be out in the summer.

Katelyn Laverdure, Communications Manager

KATELYN LAVERDURECommunications Manager

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The 2019 summer season is upon us and ABP will again run a marketing campaign created to speak to the consumer and encourage them to buy beef. At the time of writing this report, the marketing team is currently reviewing venues and contracts looking to continue ABP’s presence at Country Thunder in Calgary, Big Valley Jamboree in Camrose, Christmas in November in Jasper, as well as the Calgary Stampede.

Two new events are being considered for this summer as well. The first is a series of concerts hosted by Live Nation which will showcase Alberta Beef beyond the country music genre and into more pop and rock venues, increasing Alberta Beef’s exposure to a wider audience. The second is an Alberta Beef Steak Challenge held in Medicine Hat on July 19-20 in conjunction with the Medicine Hat Exhibition and Stampede Horse Show. This will be a professional and amateur BBQ competition featuring Alberta Beef. There will be more details to come on this event as planning continues.

We continue to support the work done at Glenbow Ranch with the Prairie Lands Education Program, as well as the Urban Farm at the Edmonton Valley Zoo. This summer will see signage completed at the Glenbow Ranch showcasing the importance of cattle grazing on native prairies. This is sponsored by ABP, Glenbow Ranch Park Foundation, Alberta Parks and TD Friends of the Environment. The Urban Farm at the Edmonton Valley

Zoo will be officially opened June 27, 2019. However, the public are able to enjoy the new facility now as they finalize details. ABP is a proud supporter of this project that highlights agriculture and where food comes from.

The revamp of ABP’s kindergarten to grade six program is well under way and will be ready for the fall school season. We will be highlighting both the All for the Beef program, which was revamped over the summer of 2018, and the new kindergarten to grade six resources to schools across the province to create awareness around the availability of these tools. Our next educational step will be to develop a more science or social based resource that would be applicable to senior high students focusing on the importance of the beef industry to Alberta’s environment. We are in the beginning stages of discussing this program and will likely hold off on development until early 2020, when we see what potential curriculum changes take place and take into account the resources available.

Alberta Beef Producers participated in both Aggie Days hosted by the Calgary Stampede and Amazing Ag hosted by Northlands in Edmonton

MARKETING AND EDUCATION

again this year. Both events were successful and great opportunities to engage with youth in Alberta to talk one-on-one about the beef industry.

Alberta Beef Producers continues to support smaller events around the province as resources allow and is a bronze sponsor of 4H Alberta. In February, Alberta Beef Producers was a major sponsor at the third annual Meet in the Middle event for Canadian Ag Day, which focused this year on connecting education professionals with agriculture producers. We also participated in the Feed a Farmer cook-off on Canadian Ag Day hosted by Ag for Life with commodity support.

In August, ABP will be one of the commodities sponsoring Alberta on the Plate. This is a new event coinciding with Alberta’s Local Food Week which runs annually and ties in with Alberta Open Farm Days. The program will engage farmers and ranchers, growers, chefs, restaurateurs and processors. If it is successful, the hope is for it to become an annual event targeting small and large cities across the province.

Brad Dubeau, Marketing and Education Manager

BRAD DUBEAUMarketing and Education Manager

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There is certainly no shortage of excitement when it comes to provincial politics. We saw another change in the Alberta government as the UCP won a majority in the April election, with the NDP forming the official opposition. We will continue to work with all current government and opposition MLAs on issues and opportunities of most importance to Alberta’s beef industry. Our approach will remain professional and respectful and we look forward to working with all newly elected MLAs on continuing to build a strong, resilient and sustainable beef industry. We will advocate to ensure government continues to support our efforts in environmental stewardship of both private and public lands, wildlife management and reducing predator impacts on livestock, and to continues to invest in the beef industry in areas of research and innovation, rural infrastructure, conservation and ecosystem services.

Since the ABP AGM in December, and because of the upcoming election, we focused on engaging with our political parties and their candidates so they were aware of beef industry issues. We hosted a series of lunch meetings at the Canadian Beef Centre of Excellence in Calgary where we presented our positions on a variety of issues, and answered questions from candidates. We were pleased to see many of our ideas in party platforms leading into the election. Recently, we collaborated with Alberta Cattle Feeders’ Association (ACFA) to update our lobby document and prioritize issues for the Alberta government to address in the short

and long term. We are now in the process of organizing meetings with cabinet ministers and senior government staff so that they can start implementing our suggestions.

We held our fourth Annual Alberta Beef and Beer MLA reception at the legislature in May with Alberta Agriculture, ACFA and Alberta Small Brewers Association hosting all party MLAs to discuss the beef industry.

In addition to our direct interactions with MLAs and candidates leading to the election, we continued to work on several important issues for beef producers. For example, in collaboration with Western Stock Growers’ Association and the Alberta Grazing Leaseholders Association, we consulted on the Bighorn Country Proposal that could impact approximately 270 grazing leaseholders in the area. We met several times with senior Alberta Environment and Parks staff, and provided our recommendations for the proposal. They can be viewed on the ABP website under the Policy and Regulation tab.

This spring we continued working with Alberta Environment and Parks and the Waterton Bioshphere Reserve Association on reducing predator depredation on livestock. We created an “Industry-Government Wildlife Working Group” where we hope to implement a project to reduce conflict from occurring for livestock owners, and improve the predator compensation model when conflict does happen.

As mentioned previously, we have developed several government advocacy priorities this year, including:

1. Increasing government funding forbeef, feed grains, and forageresearch and innovation.

2. Increasing provincial funding oflocal government ruralinfrastructure systems that supportagriculture and agri-food,particularly roadways and bridges.This includes enabling municipalitiesto boost their infrastructureinvestments by modernizing

GOVERNMENT AND POLICY REPORT

property tax assessment and taxation of farmland.

3. Improving access to labour throughthe Temporary Foreign Workersprogram and the Alberta ImmigrantNominee Program and creatingimproved paths to permanency forforeign agriculture workers.

4. Ensuring long-term secure tenure ofgrazing leases and implement themodernized Alberta Grazing RentalRate Framework that was developedby grazing associations in Alberta.

5. Improving labour legislation so thatit is more applicable and practicalfor farms and ranches, whileensuring proper protections forfarm and ranch employees.

6. Improving the Business RiskManagement programs.- AFSC hay, pasture, lack of moisture,and production insurance products- Wildlife compensation for livestockdepredation and crop damage

7. Reviewing and revising transportregulations to be more practicablefor farms and ranches.

8. Reducing bureaucratic red tape thatinhibits the ability to do business inareas such as:- Grazing lease and permittransfers and renewals- Approvals for water permits,licenses, lease improvements, etc.- Temporary Foreign Workerapplication and approval process

We will continue to present sound policy solutions to the government on issues that impact beef producers and opportunities to capture additional value for the industry. Not only do we want to strengthen government relations, we want to strengthen lobby collaborations with industry partners, and other organizations like Ducks Unlimited who have complementary conservation and stewardship objectives. We look forward to working with the government and all beef industry stakeholders on good, practical policy for the benefit of all Albertans.

Tom Lynch-Staunton, Government Relations and Policy Manager

TOM LYNCH-STAUNTONGovernment Relations and Policy Manager

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be provided has increased to eight hours from five hours. An exemption from these mandated times exists for trailers or other conveyances that are specially equipped to provide feed and water to all animals throughout the journey, but these trailers do not yet exist in any great numbers for cattle in North America. Compromised animals can be transported for a maximum of 12 hours before mandatory feed, water, and rest. Young animals that can’t be fed exclusively on hay or grain can be transported in a single trip only for a maximum of 12 hours (i.e. a baby calf is not permitted to be transported for six hours, unloaded, reloaded, and transported again for six hours).

The regulations also prohibit anyone from leaving an animal at a slaughter plant or assembly centre (for the definition of an assembly centre, see the regulations) unless the person transporting the animal provides the receiver of the animal with written notice that the animal has arrived and a document that contains information regarding the condition of the animals, the date and time it was last provided access to feed, water, and rest, and the date and time of arrival at the slaughter establishment or assembly centre. The receiver of the animal assumes responsibility for the transported animal’s care as soon as the receiver acknowledges receipt of the notice and accompanying information. The transporter retains responsibility for the care of the transported animal until the received has provided that acknowledgement and documentation.

Every commercial carrier or any other person that transports animals during the course of business, or for financial benefit, must have a contingency plan that establishes measures to be taken if there are unforeseen delays or circumstances that could result in the animal’s unnecessary suffering, injury or death; or if the animal becomes compromised or unfit during loading, unloading, or transport. In addition, commercial carries will be responsible for training, or ensuring that training is received, by their

employees. Canadian Livestock Transport (www.livestocktransport.ca/en/) would be one of the available options, but after March 1, 2020, mandatory entry level training from Alberta Transportation is required for all new Class 1 and Class 2 drivers that are farmers and farm workers.

Cattle producers strongly support animal welfare and our objective is to achieve the best possible outcomes for cattle in transport, while recognizing the logistical challenges associated with our unique geography and infrastructure. We emphasized that regulatory changes should be science and outcome based, focusing on what is best for the animal.

Our producers believe regulatory revisions should be based upon research conducted under commercial conditions, with cattle, transport trailers and drivers, under the typical transport distances and conditions experienced in Canada. An example is the rest stop research currently being conducted under the third Science Cluster (overview at: www.beefresearch.ca/factsheet.cfm/effect-of-rest-stop-duration-and-quality-during-transport-on-cattle-welfare-259).

We continue to engage with other organizations on issues of importance in animal health and welfare. A collaboration between Alberta Farm Animal Care, Alberta Milk, Alberta Cattle Feeders’ Association and ourselves resulted in a benchmarking project examining the welfare status/fitness of cattle arriving at auction markets and abattoirs in Alberta (read the summary here: https://irp-cdn.multiscreensite.com/f1ef9cf3/files/uploaded/Comp%20Cattle%20Final%20Report_RvMrc03PTqaDVCTxTmf9.pdf). Our collaboration with numerous stakeholders is ongoing as we attempt to systematically address the issues surrounding the diseased bison herds in and around Wood Buffalo National Park through a variety of activities.

Karin Schmid, Beef Production Specialist

Effective December 1, 2018, all medically-important antimicrobials (essentially everything except pour-ons, most implants, and ionophores like monensin) became prescription only. This meant that instead of running to the nearest UFA for a bottle of penicillin, producers now had to ensure they had an appropriate vet-patient-client relationship, a veterinarian had determined medical need, and obtained a valid prescription for the product. Producers that already had strong relationships with their vet likely didn’t notice much change. For others with less frequent contact, this may have been an adjustment. Although prescriptions written by one veterinarian may be filled by another, ABP felt it was important that producers had additional dispensing options as long as a valid prescription was in place. At the time of writing, while we have heard some anecdotal reports of challenges, complaints about the new process directly to ABP have been few.

On February 20, 2019, the Health of Animals Regulations Part XII, humane transport were updated. These regulations come into force February 20, 2020, so if you transport cattle, it will be important to familiarize yourself with the new regulations. The full text of the regulations, along with the Regulatory Impact Analysis Statement can be found here: www.gazette.gc.ca/rp-pr/p2/2019/2019-02-20/html/sor-dors38-eng.html.

The biggest change in the regulations is the reduction in transport time from 48 hours to 36 hours, without any flexibility in that 36-hour cut-off time for unforeseen circumstances. After 36 hours of transport, rest stop duration where feed and water must

BEEF PRODUCTION

KARIN SCHMIDBeef Production Specialist

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create an extension tool to inform testing disease options. A concurrent project using the same computing equipment will evaluate the impact of calf management before feedlot arrival on BRD and cost of production, and create a cost:benefit model. ABP contributed $4,887.50 to a total project budget of $144,475.

The goal of ANH.13.18 (Dr. Nathan Erickson, WCVM) is to use a novel multi-virus disease challenge model and large field study to compare two different vaccine protocols for managing BRD. ABP contributed $17,250 to a total project budget of $171,560.

FRG.01.18 (Dr. Surya Acharya, AAFC Lethbridge) is a continuation of a previously ABP-ALMA funded project designed to improve the oil content of sainfoin and alfalfa in order to improve the nutritive quality of these legumes. The previous project was successful in raising the oil content in the vegetative tissue of sainfoin and alfalfa from essentially zero to about five percent. This new project will continue the breeding process to ensure that selected populations are stable and other important agronomic traits are not affected. ABP contributed $24,990 to a total project budget of $143,730. Read about the previous project here: https://irp-cdn.multiscreensite.com/f1ef9cf3/files/uploaded/FRG1115%20Final%20Report.pdf)

In addition, factsheets on the completed $1 million forage call held in partnership with ALMA (subsequently AF) can be found here: www.albertabeef.org/producers/industry-research

The Alberta Beef Forage and Grazing Centre extension projects are well underway and have garnered a lot of interest across western Canada. The

“Rancher Researcher Pilot” (funded by AF with industry match from the core operating funds ABP provides to the Centre) has been extended to March 2020 to allow for collection of more detailed data. This program will be expanded this year to cement the processes and templating necessary

for other organizations to run similar programs with producers in their area.

The larger KTT project (also funded by AF, with industry match from funds ABP provides to the Centre) has three main themes: 1) managing grazing in average and extreme weather conditions, 2) perennial and annual forage variety selection for regional applicability, and 3) critical elements of animal nutrition and feed quality. It also includes transitioning applicable resources from foragebeef.ca to beefresearch.ca. We have developed some easy online tools for feed test results analysis and pricing feed based on quality. They are available at: www.beefresearch.ca/research/feed-value-estimator.cfm

For the grazing management theme, we are working on developing core course material for “Pasture School 2.0” – think of it like a grazing course but online and at your own speed. This can be supplemented by more in-depth information and field days. Content development is currently underway, with the first modules available later this year.

In terms of species selection, we were fortunate to get matching funding from BCRC to develop “Forage U-pick.” This tool will update and expand on the currently available Forage Species Selection Tool from the Saskatchewan Forage Council, and the Peace Forage Seeding Tool from the Peace River Forage Association to include all soil zones/eco regions in western Canada (BC to MB), and some basic weed identification and control options.

We look forward to working with the new provincial government to ensure provincial research priorities are aligned with industry research priorities and are positioned to best serve the needs of Alberta’s cattle producers.

For all your beef research needs, please visit: www.albertabeef.org/page/research, www.beefresearch.ca, or contact Karin at the ABP office.

Sincerely,

Fred Lozeman, Chair

Last year’s research call partnered with Saskatchewan Cattlemen’s Association (SCA) for the second time, and resulted in five jointly funded projects. Priorities were concentrated on animal health and welfare, and forage and grassland productivity outcomes from the Canadian National Beef Research and Technology Transfer Strategy.

The following successful projects have either been contracted, are currently in the contracting process, or are awaiting confirmation of matching funding.

ANH.02.18 (Dr. Kim Stanford, AF) will identify whether common cereal ergot alkaloid profiles exist in various growing regions and in different cereal crops, evaluate the effects of heating, pelleting and storage on the various ergot alkaloids present, and validate grain processing strategies to reduce ergot contamination in a live animal feeding study. ABP contributed $23,646, to a total project budget of $267,292.

ANH.05.18 (Dr. Dongyan Niu, UCVM) proposes to develop bacteriophage-derived lysins (essentially a virus that invades bacterial cells) to treat bovine respiratory disease (BRD) instead of antibiotic treatment. This project will identify, engineer, and evaluate the antibiotic activity of lysins against common BRD pathogens and determine their effectiveness with a live animal disease challenge. ABP contributed $4,226.50 to a total project budget of $287,500.

The funding provided to ANH.11&12.18 (Dr. Cheryl Waldner, WCVM) supports the purchase of improved computing equipment as infrastructure expenditures are often deemed ineligible in other granting programs. The models developed will help us understand changes in Johne’s disease prevalence and spread, inform control strategies and

RESEARCH COMMITTEE

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I am pleased to report to you as President of the Canadian Cattlemen’s Association (CCA). The CCA’s continued focus on trade and market access priorities are setting the stage for a sustainable future for Canadian beef production.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect on December 30, 2018. Canada signed the Canada-U.S.-Mexico Agreement (CUSMA) on November 30. Once ratified via the legislative processes of the three countries, CUSMA will update, modernize, and replace the North American Free Trade Agreement (NAFTA). Canadian beef exports to the EU continued to grow in volume and value as the reciprocal two-way trade envisioned under the Canada – EU Comprehensive and Economic Trade Agreement began to take shape.

Imports of Canadian beef in Japan have gained in volume and value since the CPTPP was implemented. On April 1, 2019 the second round of tariff cuts came into effect, reducing tariffs to 26.6 per cent on both Canadian fresh and frozen beef with further cuts to continue over the next several years. Tariffs were also reduced for a range of offal products popular in Japan in December.

In May 2019, expanded access for Canadian beef to the Japanese market was achieved as Japan

CANADIAN CATTLEMEN’S ASSOCIATION REPORT

lifted its over 30-month (OTM) age restriction for beef exports. Exports of Canadian beef to Japan are expected to increase under the expanded access for OTM beef.

Statistics Canada data from three months since the implementation of the CPTPP (March 2019 YTD) indicates a significant increase in volume up 100.2 per cent to 9,826 metric tonnes and up 117.4 per cent in value to CDN$68.7 million compared with the same period last year.

The CCA is calling for the swift ratification of CUSMA following the recent resolution of the tariff issue between the Government of Canada and the U.S. The CCA urges Canada and the U.S. to keep the momentum towards ratification going by each country ratifying the deal, known stateside as the U.S.-Mexico-Canada Agreement (USMCA) and in Mexico as T-MEC, to ensure continued stability in North American market.

NAFTA has and will continue to remain in force until the new agreement is ratified by its respective members. CUSMA importantly preserves duty-free trade in live cattle and beef and leaves key dispute settlement provisions intact; the agreement excludes any reference to country of origin labeling for meat or livestock. There is ongoing commitment to address regulatory matters affecting cattle and beef trade and to continuously improve the competitiveness of the North American beef sector, all outcomes the CCA advocated for.

The CCA has connected with Agriculture and Agri-Food Minister, Marie-Claude Bibeau, on several occasions since March and is pleased that she is receptive to hearing our views on matters of importance to Canada’s beef producers. In March the Minister announced new funding of up to $31 million to increase the number of detector dogs at Canadian airports to help prevent illegally imported meat products from entering Canada. The funding, part of Budget 2019, will

safeguard Canada against African Swine Fever and help address the on-going risk of highly contagious diseases like Foot and Mouth Disease entering Canada.

The CCA applauds the government for announcing a three-year immigration pilot to bring in full-time, non-seasonal agricultural workers that will include a pathway to permanent residency. This development aligns with industry’s position on augmenting the Canadian agriculture workforce with foreign workers that have a pathway to permanent residency. We encourage the government to implement this pilot at the earliest opportunity.

CCA has shared industry’s leadership in sustainable production along with the nutritional benefits of beef to human health with Minister of Health Ginette Petitpas Taylor in conversations about the Food Guide and Front of Package labelling. To emphasize the need for Canadian health and nutritional policy to be based on sound and consistent scientific evidence, the CCA created a food policy committee and will continue to work with the federal government on messaging going forward to ensure Canadians understand the importance of a balanced diet including beef.

In May, CCA shared its perspective on the labelling and marketing of meat, plant-based proteins and lab grown proteins at Health Canada’s 2019 Food and Nutrition Stakeholder Engagement Session and the Beef and Pork Value Chain Roundtables - Joint Session in Ottawa. The CCA’s view is that for a product to be labelled or marketed as meat it must meet the legal definition of “meat” or “meat by-product” as defined in the Food and Drug Regulation. Subsequently, the Quebec Beef Producers made a submission through CFIA’s complaint-based system about the labelling of an alternative-plant based protein product marketing itself as meat. The CCA is working with its U.S. counterpart, the National Cattlemen’s Beef Association

DAVID HAYWOOD-FARMERPresident

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(NCBA), on the need for a consistent approach to, and predictable rules for, the labelling of meat products with international bodies like the International Meat Secretariat, International Beef Alliance and Codex Alimentarius Commission.

The revised Transportation of Animals regulations were published in Canada Gazette Part 2 in February 2019. The regulations reduce the maximum time cattle will be allowed to be in transit without feed and water to 36 hours from 48 hours (52 hours if animals are reaching their final destination), and to 12 hours from 18 hours for ruminants too young to be fed hay or grain. Changes to some definitions, rest stop duration and transfer of responsibility requirements were part of the package.

The federal government’s decision to reduce the number of hours cattle can be in transit is a source of considerable concern among beef producers. Reducing the hours in transit means that cattle will have to be unloaded more frequently for feed, water and rest, potentially increasing the risk of injury during the loading and unloading process, as well as increasing stress on the animals. Increased opportunities for comingling may also increase the potential to spread disease among livestock.

Producers are requesting that these regulatory changes be delayed until ongoing research with respect to stress caused during unloading and reloading is completed to better inform the regulations. The anticipated completion date for this research, funded by the federal government and industry, is 2022.

Existing research by Agriculture and Agri-Food Canada shows 99.5 per cent of cattle on long hauls more than four hours and 99.98 per cent of cattle on short hauls less than four hours arrive at their destination in good condition.

The CCA’s position is that any regulatory change needs to be based on scientific evidence conducted

under Canadian conditions and wherever possible, use outcome-based guidelines that focus on the animal. The CCA will continue to stress the importance of the government reviewing the results of the pending research and adjusting as needed to ensure that the regulations are aligned with the most robust and applicable research available.

In May, CCA appeared before the Senate Committee on Fisheries and Oceans to provide comments on Bill C-68, the act to amend the Fisheries Act. Key among these efforts was asking the Senate to remove a last-minute addition of a greatly expanded definition of fish habitat in the Fisheries Act that will make it nearly impossible for beef and agricultural producers to be in compliance with the Act, as part of a suite of recommendations regarding Bill C-68. Bill C-68 has been parked at the Senate since December 2018, when it passed second reading before being moved to the standing committee for study. The CCA thanks the committee for granting its request to appear before them to share the perspective of Canada’s beef industry.

On traceability, the CFIA revised the anticipated date for the publication of draft regulations pertaining to livestock traceability in Part I of the Canada Gazette to spring 2019 from fall 2018. We understand that there may be a further delay to this date and await an official announcement confirming that.

The CCA will continue to work with CFIA to clarify definitions that may appear in the regulatory text and ensure that movement reporting upholds industry traceability principles and reflects the Cattle Implementation Plan (CIP). CCA continues to urge livestock operators to ensure they have a valid Premises ID number and record it in the Canadian Livestock Tracking System (CLTS) well in advance of the final version of the proposed regulation, anticipated to be implemented in 2019.

In March 2019, CCA approved an official statement on antimicrobial stewardship at its Annual General Meeting in Ottawa. CCA’s 2019 statement on antimicrobial stewardship reinforces demonstrated leadership to date of the Canadian beef industry’s contribution to reducing the risk of antimicrobial resistance, while preserving our access to treatments for animal disease, as part of our commitment to animal welfare.

The Canadian Agriculture Partnership is a five-year, $3 billion-dollar investment designed to bolster competitiveness, growth and innovation in the Canadian agriculture and agri-food sector. In addition to some changes to Business Risk Management (BRM) programming, Federal, Provincial and Territorial Agriculture Ministers have undertaken a comprehensive review of BRM programming to investigate the types of risks producers face and assess the effectiveness that BRM programming has on growth and innovation in the industry. CCA continues to explore these issues and has identified key areas it intends to advance while engaging in the BRM review this year, such as improvements to forage insurance, AgriStability and expanding the availability of price insurance beyond Western Canada.

An updated National Beef Strategy covering the period 2020-2024 will be released in 2019. As chair of the Canadian Beef Advisors, which provides oversight to the Strategy, I’m confident both the progress captured in the recent status update and direction of the strategy going forward will provide producers with reason for ongoing optimism in the industry.

Sincerely,

David Haywood-Farmer, CCA President

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Canada’s Beef Cattle Industry Science ClustersThe Science Clusters are a partnership with Agriculture and Agri-Food Canada and the BCRC to make joint-investments in a variety of research programs with the greatest potential to advance the industry.

Beef Science Cluster II OutcomesJoint industry and government commitments to the second Cluster (2013–2018) totaled $20 million, directed to 26 research projects. Results include:

• A factual understanding of the Canadian beef industry’s environmental footprint. In 2011, producing each kg of Canadian beef required 29% less breeding stock, 27% fewer slaughter cattle and 24% less land, used 17% less water, and produced 15% less greenhouse gases than in 1981.

• Optimal combinations of annual forage crops, agronomic management and grazing practices that improve forage productivity while providing economical and nutritionally appropriate winter feed for the cow herd.

• Cost-effective, practical ways to manage the pain associated with castration in beef calves.

• An understanding of the occurrence and severity of beef carcass defects to inform prevention strategies. Total losses due to carcass quality defects are approximately $200 million/year. Some defects, like bruises and horns, are becoming less common while others, like excess weight, fat, tag, liver health and injection site lesions require further investigation of nutritional and health management strategies to reduce losses.

• New feed grain and forage varieties with superior yield and quality, including ten barley varieties

approved for registration, and several lines of native plant materials, legumes, grasses and triticale with potential for commercialization.

• Dry chilling methods to cost-effectively control microbiological growth on carcasses in small abattoirs.

Beef Science Cluster III in ProgressFunding for the third Cluster (2018-2023) totaled $21 million and is being directed to 26 research projects. The funding includes $14 million from AAFC, $5 million in funding from the research allocation of the Canadian Beef Cattle Check-Off and $1.5 million in in-kind contributions from industry.

Examples of Cluster III project objectives include:

• determine how camera-based computerized carcass grading systems can optimize fabrication and direct beef products to the most suitable market to support market growth and trade;

• expand production-limiting disease surveillance across Canada to anticipate, mitigate and respond to emerging disease threats;

• enhance environmental sustainability and address climate change by evaluating carbon sequestration and biodiversity in Canada’s grasslands and identify strategies to increase the beef industry’s contribution;

• reinforce public trust and support transport regulation development by determining optimal rest intervals and durations for cattle in transit;

• support consumer confidence and demand by improving understanding of bacteria and cattle interactions to improve food safety, reduce the risk of E. coli O157:H7, reduce the need for antimicrobials to treat bovine respiratory disease and digestive upsets.

Leveraging the Increased Canadian Beef Cattle Check-OffThe increased Canadian Beef Cattle Check-Off in many provinces enables the BCRC to continue to play an integral role in achieving several of the industry goals identified in the National Beef Strategy by maintaining

existing programming and expanding in the following ways:

Priority Research Projects: In addition to the projects within the third Science Cluster, research aimed at achieving specific goals of high priority to the beef industry are being sought. Beginning June 2018, the council began launching annual targeted calls for letters of intent. Summaries of the funded research projects will be available on BeefResearch.ca.

Research Capacity: Research expertise in Canada has declined to critical levels in several areas, including those related to beef production and forage breeding, agronomy, and utilization. The council launched a call for proposals for Research Chairs in August 2018. An announcement will be made in 2019 subject to matching funds being procured for two chair positions.

Knowledge and Technology Transfer: To support the regionally limited, underfunded, and fragmented nature of beef extension across Canada, the BCRC recently focused on developing and utilizing a Canadian Beef Technology Transfer Network. To develop collaborative extension projects, including economic-based decision-making tools for producers, the council began launching calls for letters of intent for technology transfer and production economics projects in June 2018. Summaries of the funded projects will be available on BeefResearch.ca.

Advancement of the Verified Beef Production Plus (VBP+) program: In addition to funding research, the BCRC is responsible for the delivery of the VBP+ program. Ongoing national industry investment will ensure the consistent delivery of the VBP+ program as it becomes a core pillar in verifying sustainable beef production in partnership with end-users.

To learn more about BCRC initiatives and take advantage of our extension resources, including articles, videos, webinars, and calculators, visit our website at www.beefresearch.ca.

Ryan Bierbach, Chair

BEEF CATTLE RESEARCH COUNCIL REPORT

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Domestic market developmentThe 2018 consumption data projected increases in per capita beef consumption. Per capita beef consumption was up 4.5 percent at 18.7 kg (retail weight), and total beef consumption was up five percent to 970,000 tonnes (carcass weight). Seventy-eight percent of beef consumed in Canada was sourced from domestic production, up from 75 percent in 2016. Preliminary 2018 data shows retail demand is -0.5 percent and wholesale demand is +1.7 percent.

Public and Stakeholder EngagementIn response to the launch of Canada’s Food Guide in January, a social media campaign around sustainability and beef was developed. The posts highlighted key facts around nutritional benefits of beef and sustainability information. The team was also prepared with approved responses to potential comments from social users. The joint issues management team coordinated a response strategy that included responding to over 50 interview requests; resource kits produced and shared with national and provincial organizations (#Beefbelongs); collaboration with other animal protein groups; and media training for key spokesmen.

Beef Nutrition TV CampaignCanada Beef conducted a Canada-wide television campaign for winter 2019. In light of the new food guide discussions around the value of plant-based proteins, the campaign was designed is to draw consumer attention to beef’s substantial nutrient profile, in conjunction with its amazing taste and versatility as part of a balanced diet.

The 3 x 15-second spots stressed the remarkable nutrient density of beef compared to other protein foods, including plant-based burgers. There was a focus on beef’s clean ingredient deck and beef’s champion nutrients such as quality protein, iron, zinc and

vitamin B12. Each spot ended with a call-to-action to visit www.thinkbeef.ca to learn more about beef.

The $220,000 campaign ran January 21 to March 31 on a variety of prominent television networks such as CTV, CBC, CTV News Channel, CBC News Network, the Food Network, HGTV, Showcase and the National Geographic Channel. The campaign was projected to reach over 15 million adults (25-54) with 1,001 total spots.

Strong International Demand Overall Canadian beef exports from January to December 2018 were up over five percent in volume and over 14 percent in value. These are record high values and near record high volumes. Canada’s top five markets are: U.S. 74%; Japan 8%; China 7.7%; Mexico 4%; Southeast Asia 1.8%; Middle East and North Africa 0.3%; and 0.2% EU.

In anticipation of the ratification of the CPTPP, Canada Beef and the Canadian Embassy jointly organized a beef focused promotion event in Tokyo in December 2018. The presentations aimed to further awareness of Canadian beef, its taste and advantages among retail, foodservice, distributors, importers and media.

Positive momentum was maintained at the Tokyo Supermarket Show February 13-15, where 90,000 visitors attended over three days. The Canada Beef booth offered food sampling from Cargill, JBS, Montpak and Ontario Corn Fed. This was the first food show since tariff reductions came into force under the CPTPP and the trade, media and public were focused on beef imports.

As a result of the growing attention to Canadian beef, our booth in the Canadian pavilion at Foodex on March 5-8 was a hotbed of activity. Foodex isone of the largest food shows in Asiawith approximately 80,000 visitorsover four days. We ran booths underthe banner of the Canadian Pavilionorganized by Agriculture and Agri-Food Canada. Samples displayedwere from Cargill, JBS, St. Helen’sMeat Packers, Ryding Regency, andMontpak.

CANADA BEEF China hosted the first China International Import Expo (CIIE) in Shanghai November 5-10. According to Chinese statistics, the event attracted more than 3,600 companies and over 400,000 domestic and international buyers from 172 countries. Canada Beef partnered with the Government of Canada to showcase the Canadian beef brand mark on the Canada Pavilion backdrop wall, along with Canadian beef brand images and videos.

Canada Beef also exhibited at Food & Hotel China November 13-15. Key exporters, importers, and distributors of Canadian beef were invited to participate with their products displayed and demonstrations in the booth. Former Canadian Federal Minister of Agriculture and Agri-Food Lawrence MacAulay visited the Canada Beef booth, was involved in a demonstration and interviewed by local media.

Canada Beef hosted an international mission from China March 18-22 with a Pasture-to-Plate program including cow/calf and feedlot tours, packer visit, CBCE culinary and butchery innovation seminars and retail and foodservice engagements. The 10 delegates were some of China’s largest and most influential meat importers and distributors servicing both retail and foodservice operations. Canada Beef also participated in the SIAL Food Show in Shanghai China May 14-16, maintaining our market presence despite ongoing political tensions between Canada and China. So far beef trade has been generally unaffected by these tensions.

Held in Dubai, Gulfood Show is one of the top trade events in the global food and hospitality business, attracting 5,000 exhibitors and 90,000 buyers from 160 countries. Canada Beef in partnership with Agriculture and Agri-Food Canada participated with a booth offering samples of Canadian beef. The team communicated that Canadian beef is a safe, sustainable, premium quality, halal certified beef product to buyers from the UAE, North Africa, the EU, Asia and beyond.

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The 2018-2019 year was an exciting one of growth for the Public and Stakeholder Engagement (PSE) program. Though the fiscal year represented the first year of full check-off funding, funds were slow to be remitted, causing cash flow restrictions and the need to put certain projects on hold. Two large issues in January consumed a lot of time, and our focus has been on issues management and developing strategy for 2019-2020. We completed important components of key activities to drive forward the mandate of the PSE program, developed the 2018-2019 Work Plan, and supported ongoing management of industry issues with great success. The team added a new member, Stakeholder Engagement Specialist Amie Peck, who will support ongoing projects such as PostBeyond and the Media Advisory Committee, creating increased capacity for PSE and a broadened range of services to our stakeholders.

As 2018-2019 continued, work was completed on the joint project with Canada Beef under Agriculture and Agri-Food Canada’s Canadian Agricultural Adaptation Program. This included the development of both a communications and a media relations best practices guide, reformatting and streamlining of industry factsheets, the addition of social media training to Beef Advocacy Canada (BAC), and the creation of a microsite and booklet for public consumption entitled Where Canadian Beef Comes From.

In the spirit of collaboration, the PSE team made a $17,000 membership investment in the Canadian Centre for Food Integrity (CCFI). The CCFI is a multi-sector, non-profit organization that provides consumer research, resources and

collaborations to address public questions about Canadian food. This partnership gives PSE access to cutting edge consumer research, outlining motivations and current attitudes towards agriculture. Work like this allows our team to tailor messaging in a way that resonates with the intended audience. A $10,000 investment was made to a consumer research project with the Canadian Round Table for Sustainable Beef. This work gathered insights and opinions about the impact of sustainability claims to be used with the certified sustainability logo, to ensure clear, concise and transparent messaging is consistent with standards and regulations. The research also acquired general perceptions of animal agriculture and the value placed on sustainability in comparison to taste and price, for example.

Through the BAC program, three social media modules were added to the industry advocate training in January 2019. Moving through three levels of increasing difficulty, the modules provide learners with the skills and confidence to create effective, unique, and impactful social media posts with limited time and effort. While initial uptake has been slow, those who have participated have provided positive feedback and felt the modules filled a significant gap. Moving forward, the training will dovetail with the implementation of social media content sharing platform PostBeyond, and further marketing to drive uptake will be put forward by the team. BAC continues to be a training and information resource to enable industry partners and advocates to speak positively and effectively about Canadian beef production.

As always, ongoing issues management took priority where applicable and PSE dealt with several key issues through 2018-2019. In addition, ongoing issues around environmental sustainability and animal welfare, the release of the EAT-Lancet report and the

PUBLIC AND STAKEHOLDER ENGAGEMENT

new Canada Food Guide generated a flurry of media attention and public discussion. Through these issues, PSE spokespeople and team members participated in over 50 interviews, sharing positive messaging on the role of Canadian beef in a healthy diet. PSE supported these efforts by setting strategy, writing key messages, and communicating this information to stakeholders, as well as acting as spokespeople where appropriate. We also piloted an issue-specific, volunteer working group of national communicators in the management of the EAT-Lancet response with great success. This model allowed the team to draw on industry expertise while addressing issues in a timely and effective manner.

The continued partnership with Canada Beef, particularly in the area of nutrition, was further developed through the year. Three in-person meetings were held to discuss strategy, alignment, and direction for affiliated programs, such as the import-levy funded Think Beef. Canada Beef staff were integral in providing additional support and expertise through ongoing issues management and developing collaborative messaging. This allowed for timely, unified responses to consumer facing issues. This partnership was also represented in social media campaigns and a print ad campaign. Costco Connection provided the largest and most visible outreach for the ad, as it is mailed to all Executive Members and additional copies of each issue are available in the warehouses, making up a total circulation of 3.1 million national copies. The magazine is published in English (2.5 million copies) and in French (650,000 copies), with a readership that consists primarily of loyal Executive members with high incomes. Going forward, the partnership between the PSE team and Canada Beef will continue to be foundational to the program, with work done in collaboration or close alignment.

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2018 AGM Financial Resolutions

1. “Be it resolved that the 2017 -2018 ABP audited

financial statements and auditor’s report be

accepted.”

Board

Carried: No further action required

2. “Be it resolved that the firm of Kingston Ross

Pasnak chartered accountants be appointed as

auditors for 2018-2019 year-end audit.”

Board

Carried: No further action required

2018 AGM General Session Resolutions:

1. “Be it resolved that ABP request the Solicitor

General direct and require the Royal Canadian

Mounted Police respond with the authority given

them, and paid for by the people of Alberta, to

property crimes in rural Alberta. And that the crown

pursues these crimes for conviction and incarceration

be appropriate for the crime.”

Zone 1, 8

Carried: The ABP Board of Directors have included

this issue in their lobbying with the government. Rural

crime in Alberta is high and the RCMP are working

with the Alberta Community Crime Prevention

Association and municipalities to address the problem.

The RCMP rural property crime reduction strategy

that was introduced last year has already made some

progress. ABP will continue to lobby the government

on producer’s behalf.

2. “Be it resolved that ABP consult with other

agricultural commodity groups to lobby the

government under a united front for better protection

of rural residences and the right to protect ourselves,

our families and our property.”

Zone 7

Carried: The ABP Board of Directors have included

this issue in their lobbying with the government. Rural

crime in Alberta is high and the RCMP are working

with the Alberta Community Crime Prevention

Association and municipalities to address the problem.

The RCMP rural property crime reduction strategy

that was introduced last year has already made some

progress. ABP will continue to lobby the government

on producer’s behalf.

3. “Be it resolved that ABP lobby the Alberta

government to address excessive regulations

governing smaller abattoirs with the aim of promoting

their economic viability everywhere throughout the

province.”

Zone 5, 6

Carried: The ABP board have lobbied the government

in the past about the regulations surrounding the

activities of abattoirs and will continue discussions

going forward in talks with the knew government.

4. “Be it resolved that ABP lobby the Alberta

government to change regulations to allow for mobile

inspections for on farm harvesting of beef to allow for

the sale of beef by producers.”

Zone 9

Defeated: There are a number of Food Safety laws that

apply to the sale of beef off the farm that would need

to be changed before a producer would be allowed to

sell his own beef.

5. “Be it resolved that ABP lobby the Alberta

Veterinary Medical Association and the Alberta

government to certify vet techs to be qualified to preg

check on a non-exporting basis, to enable producers to

access preg testing services.”

Zone 1

Carried: This is an issue that the ABP Board has been

lobbying the Alberta government and the Alberta

Veterinary Medical Association to consider.

6. “Be it resolved that ABP lobby the Alberta

government to get a decent way of dealing with drugs

for animals.”

Zone 9

Defeated:

7. “Be it resolved that any producer with a valid

‘Producer Herd Health Protocol’ (prescription) from a

veterinarian be able to fill it (get medication/vaccines)

at a vet clinic, UFA, Hardware store, Feed Store, etc.”

Zone 9

Defeated: Currently a producer with a prescription

from a vet can have it filled by any vet pharmacy.

8. “Be it resolved that ABP lobby the provincial

government to reinstate the Canadian Cattle

Identification Agency Mobile Field Representatives.”

Zone 1, 2

Carried: The ABP Board of Directors agreed that ABP

needs to become more vocal in its support of age

verification acknowledging that there are benefits to

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the industry when producers age verify. To this end

the directors carried a motion at their May 1st meeting

to lobby for and support best practices by producers

including age verification

9. “Be it resolved that ABP lobby the Alberta

government to reinstate previous funding levels back

to Western Canadian large animal veterinary schools.”

Zone 1

Carried: A similar resolution was carried at the 2017

AGM and ABP Directors spoke about their concerns

with government representatives recommending that

the government continue to fund both programs. ABP

will continue to discuss the changes with government

during talks with Ministers and staff

10. “Be it resolved that ABP support Alberta Lamb

producers to lobby Fish and Wildlife to not create

arbitrary “buffer” zones on protecting Bighorn sheep.”

Zone 2

Carried: ABP had discussed this issue at a previous

board meeting and agreed that we needed to support

lamb producers in opposing the governments arbitrary

use of Highway 22 as a buffer zone for domestic

sheep.

11. “Be it resolved that ABP strengthen it’s lobby to the

provincial government to address the increasing

wildlife/livestock conflict issues, seeking solutions to

the present state of mismanagement of provincial

wildlife that presently exists and that the solutions go

beyond the call for compensation due to wildlife

damage or predation.”

Zone 3

Carried: Wildlife affects producers across the province

and ABP directors will continue to lobby the

government about the need for permanent effective

solutions to this ongoing issue.

12. “Be it resolved that ABP work with other agricultural

commodity groups to lobby the provincial government

for greater input on all issues regarding wildlife (i.e.

timing of hunting season; bag limits; Alberta

Conservation Association; compensation of

agricultural losses).”

Zone 7

Carried:

13. “Be it resolved that ABP approach the Federal and

Provincial government to review the compensation

that is awarded to producers in regard to wildlife

damage (especially goose and duck damage) to their

crops and swath grazing.”

Zone 4

Carried: Wildlife issues affect producers across

Alberta and ABP has lobbied government staff and

officials in the past about appropriate compensation

for producer losses. ABP will continue to lobby for

suitable compensation with the government.

14. “Be it resolved that ABP lobby the Alberta Solicitor

General requesting that they increase the number of

Fish & Wildlife officers to allow for a more timely and

effective response to wildlife predation and ungulate

grazing of private property.”

Zone 9

Carried: Wildlife is an on-going issue that the ABP

directors continue to discuss with the Alberta

government. Getting Wildlife officers out to a confirm

a wildlife kill or to observe damage done by ungulates

in a timely manner continues to be an issue that ABP

lobbies for with government staff and Ministers.

15. “Be it resolved that ABP lobby Alberta fish and

Wildlife and Parks Canada to monitor and control

infected ungulate populations that are known to carry

Liver Flukes and that may transmit this parasite to

cattle populations.”

Zone 2

Carried: The directors discussed the resolution at the

May 1st Board meeting and requested more

information on the issue before making any

recommendations.

16. “Be it resolved that ABP should ask government to

change legislation for paid access for hunting and all

other recreation to help cover the increased costs of

fire fighting liabilities on private land, no matter who,

or how fires are started.”

Zone 2

Carried: The directors discussed the resolution at the

May 1st Board meeting and requested more

information on the issue before making any

recommendations.

17. “Be it resolved that ABP lobby the Alberta

government to make available more grazing area in the

McKenzie County.”

Zone 9

Carried:

18. “Be it resolved that ABP direct check-off dollars to

increase funding for forage research and lobbying at

the national level through the Canadian Forage &

Grasslands Association.”

Zone 5

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Defeated: Since 2014, when the check-off became

refundable, ABP has provided over $100,000 in

funding for forage research. This money has been

leveraged significantly with other organizations, such

as the Beef Cattle Research Council, to fund forage

research with recognised research facilities. The

Canadian Forage & Grasslands Association is not a

research facility.

19. “Be it resolved that ABP educate producers on the

value of age verification to encourage more reliable

age verification.”

Zone 2

Carried: The ABP Board of Directors agreed that ABP

needs to become more vocal in its support of age

verification acknowledging that there are benefits to

the industry when producers age verify. To this end

the directors carried a motion at their May 1st meeting

to lobby for and support best practices by producers

including age verification.

20. “Be it resolved that ABP supports the allowance that

source identification of calves and information (birth

dates and dates of vaccination and medication

treatments) be available to all sectors of the industry

(including premise of birth, backgrounding premises,

feedlot premises and harvest facility).”

Zone 7

Defeated: The information would need to be accessed

through the Canadian Cattle Identification Agency

(CCIA) RFID tags and this is confidential information.

When the CCIA was formed each province needed to

sign the agreement and did so with the understanding

that information collected by the tags would remain

confidential. To allow CCIA to release the information

each province would have to agree and to sign a new

agreement.

21. “Be it resolved that ABP do everything in their power

to make the Canadian Cattle Identification Agency

RFID tag information transparent (limited to premise

identification and producer identification).”

Zone 2

Carried: A similar resolution was debated at the 2016

AGM and carried. Before CCIA can release any

information associated with the RFID tags each

province would have to approve changes to the

provincial agreements that were signed by the

provincial organizations. RCMP officers can access

this information but need a warrant.

22. “Be it resolved that ABP do more to promote the

nutritional and environmental benefits of beef through

increased use of targeted, digital marketing, directly

with consumers, especially with millennials.”

Zone 6, 8

Carried: ABP is actively working to promote Alberta

beef using 30 second commercials at large venues;

ABP sponsors Beef in the Classroom with students

from Grades 8 to 12; and by attending other consumer

trade shows when the opportunity arises. The ABP

Marketing & Education manager will continue to

refine our marketing campaign to focus on these areas

over the next few years.

23. “Be it resolved that ABP broaden our promotion to the

Alberta Education curriculum to Junior and Senior

high school students. Teaching, in addition to the

nutritional benefits of beef, an expanded knowledge on

animal husbandry practices and environmental

benefits.”

Zone 6

Carried:

24. “Be it resolved that ABP consider starting post

secondary scholarships going towards agricultural

studies.”

Zone 8

Carried: ABP provides money to 4-H clubs for

scholarships but we do not have the funds available to

provide scholarships to post secondary students.

25. “Be it resolved that the check-off be made mandatory

at all slaughter facilities as a one-time payment. Not

taken off at each time the animal changes ownership.”

Zone 4

Defeated: Similar resolutions have been made at the

zone level in the past and ABP has investigated the

possibility of going to a one-time payment and

determined that it is not a viable option. With a

refundable check-off the delegates did not consider

this option financially feasible.

26. “Be it resolved that ABP go to a single point check-

off.”

Zone 8

Defeated: Similar resolutions have been made at the

zone level in the past and ABP has investigated the

possibility of going to a one-time payment and

determined that it is not a viable option. With a

refundable check-off the delegates did not consider

this option financially feasible.

27. “Be it resolved that ABP look into reducing the

number of delegates from 6 to 3 per zone.”

Zone 2

33

Defeated: Though this resolution was defeated at the

AGM with the Regulatory Review taking place this

year a reduction in the number of delegates per zone

may be revisited.

28. “Be it resolved that should the plebiscite go through as

non-refundable, that ABP ends the Cattle Feeder

Council in 2 years to improve on overall efficiencies

and less confusion within government as to who

represents the cattle feeding sector.”

Zone 2

Redundant: The results of the plebiscite were

announced before the AGM began and would remain

refundable.

29. “Be it resolved that ABP should be provided the name

and address from willing producers, whom check off

dollars are remitted to ABP.”

Zone 6

Carried: ABP works continuously to maintain a

current list of producers. This is an on-going activity

and ABP constantly works to maintain this list.

30. “Be it resolved that ABP lobby the government to

ensure lab grown and synthetic meats or alternative

plant-based proteins not be allowed to be labelled as

beef or meat.”

Zone 6

Carried: This is an issue that the ABP staff and

directors are already working on and will continue to

address this issue. ABP is motivated to ensure that

alternate products are correctly labelled and is not

considered beef.

2018 Resolutions for Board of Directors:

1. “Be it resolved that ABP investigate the actual

benefits that Canada Beef realizes for beef cattle

producers in Alberta.”

Zone 2

Carried: Information on the work that Canada Beef

does and how Canada Beef benefits the cattle industry

in Canada and Alberta can be found on their website

https://canadabeef.ca

2. “Be it resolved that in order to protect affected

producers and their livestock and our industry image,

ABP lobby the Alberta government to require the

Alberta Energy Regulator to significantly speed up

response times and corrective measures whenever air

pollution measurement ‘alarms’ or monitors indicate

that pollution levels have exceeded approved safety

levels – even when this occurs in more remote areas of

the province, such as in the Three Creeks-St. Isadore

area.”

Zone 9

Carried: The directors felt it was reasonable to expect

a quicker response to alarms that measure the amount

of pollution in an area. ABP will lobby to have

responses to these alarms made in a more timely

manner.

3. “Be it resolved that the appropriate ABP committee

encourage Alberta Meat Inspection to allow mobile

slaughter of accidentally compromised animals to

achieve some form of an “inspected” status that would

allow healthy protein to be harvested for human

consumption.”

Zone 6

Carried: The Directors felt they needed more

information before determining how to proceed with

the motion.

4. “Be it resolved that ABP lobby the Alberta

government to promote farm inspection for non-

ambulatory animals to be slaughtered and used for

human consumption.”

Zone 5

Carried: The ABP Directors will add this issue to the

list of topics that they discuss with the government

staff and officials.

5. “Be it resolved that ABP reach out to post secondary

education institutions to present on what ABP is about

to increase awareness.”

Zone 8

Carried: This is an issue that the ABP is currently

working on. ABP has an on-going relationship with

post-secondary institutes that offer agricultural

programs and ABP talks about the benefits of beef to

post-secondary students. ABP will continue to expand

its focus on post-secondary institutions across Alberta.

6. “Be it resolved that ABP reverse the agreement with

Alberta Environment & Parks that one of its delegates

voted in favour of, which was for bison to be listed as

an endangered species.”

Zone 9

Carried: Bison have not been listed as an endangered

species yet. The motion went through but did not get

Ministerial approval. With the change in government,

there will likely be further consideration of this issue

7. “Be it resolved that ABP and the Canadian

Cattlemen’s Association investigate the feasibility of

34

the check-off being charged on all cattle entering

Canada.”

Zone 3

Carried: Canada already charges a Service Charge of

$1.00 on all cattle entering Canada

8. “Be it resolved that ABP support and lobby the

Federal government to ban growth enhancing

hormones in Canada in the production of beef.”

Zone 8

Defeated:

2018 Resolutions for Research Committee:

1. “Be it resolved that ABP lobby the Alberta

government to fund and support a Johne’s

Surveillance program to mitigate the risk to the beef

industry.”

Zone 1

Defeated: The ABP Research Committee agreed to

wait until the results of a project they have funded

along with the Saskatchewan Cattlemen’s Association,

the Saskatchewan Agriculture Development Fund, and

the Beef Cattle Research Council are available in 2022

in order to accurately assess if a Johne’s surveillance

program is warranted in Alberta, and if so, how it

should be implemented prior to approaching the

provincial government on this topic.

2. “Be it resolved that ABP could arrange a testing

program for Johne’s disease in beef cattle in the

province of Alberta with some type of funding

compensation to the producer.”

Zone 9

Defeated: The ABP Research Committee agreed to

wait until the results of this project they have funded

along with the Saskatchewan Cattlemen’s Association,

the Saskatchewan Agriculture Development Fund, and

the Beef Cattle Research Council are available in 2022

in order to accurately assess if a Johne’s surveillance

program is warranted in Alberta, and if so, how it

should be implemented prior to approaching the

provincial government on this topic.

35

ALBERTA BEEF PRODUCERS

Financial Statements

Year Ended March 31, 2019

ALBERTA BEEF PRODUCERSIndex to Financial StatementsYear Ended March 31, 2019

Page

INDEPENDENT AUDITOR'S REPORT 1 - 2

FINANCIAL STATEMENTS

Statement of Operations 3

Statement of Changes in Net Assets 4

Statement of Financial Position 5

Statement of Cash Flow 6

Notes to Financial Statements 7 - 21

Operating Expenses (Schedule 1) 22

June 10, 2019INDEPENDENT AUDITOR'S REPORT Edmonton, Alberta

To the Directors and Delegates of Alberta Beef Producers

Opinion

We have audited the financial statements of Alberta Beef Producers (ABP), which comprise thestatement of financial position as at March 31, 2019, and the statements of operations, changesin net assets and cash flow for the year then ended, and notes to the financial statements,including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of ABP as at March 31, 2019, and the results of its operations and its cash flowfor the year then ended in accordance with Canadian accounting standards for not-for-profitorganizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Ourresponsibilities under those standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of ABP in accordancewith the ethical requirements that are relevant to our audit of the financial statements in Canada,and we have fulfilled our other ethical responsibilities in accordance with those requirements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

Management is responsible for the preparation and fair presentation of the financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for suchinternal control as management determines is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing ABP's ability tocontinue as a going concern, disclosing, as applicable, matters relating to going concern and usingthe going concern basis of accounting unless management either intends to liquidate ABP or tocease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing ABP's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with Canadian generally acceptedauditing standards will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

(continues)

Independent Auditor's Report to the Directors and Delegates of Alberta Beef Producers(continued)

As part of an audit in accordance with Canadian generally accepted auditing standards, weexercise professional judgment and maintain professional skepticism throughout the audit. Wealso:l Identify and assess the risks of material misstatement of the financial statements, whether

due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

l Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of ABP’s internal control.

l Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

l Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on ABP’s ability to continue asa going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause ABP to cease to continue as a going concern.

l Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

Kingston Ross Pasnak LLPChartered Professional Accountants

ALBERTA BEEF PRODUCERSStatement of OperationsYear Ended March 31, 2019

2019 2018

REVENUEAlberta service charge (Note 2) $ 7,431,149 $ 7,398,881National Levy (Note 2) 9,375,358 3,644,163Less dealer rebate (188,886) (182,208)Less Alberta service charge refunded (2,894,134) (2,586,985)Plus recovery of dealer rebate and voluntary contributions 73,200 48,249Interprovincial marketings (Note 2) 109,569 91,291

13,906,256 8,413,391

Canadian Beef Check-Off Agency (Note 9)Canada Beef 4,448,172 2,915,330Beef Cattle Research Council 3,891,231 728,833The National Agency 506,587 -Public and Stakeholder Engagement 529,369 -

9,375,359 3,644,163

Excess of revenue over expenses before the undernoted 4,530,897 4,769,228

OTHER REVENUEGrants (Note 7) 1,076,905 1,046,777Interest and other income (Note 4) 350,820 177,751Producer Loyalty Partnership Program 15,000 12,500Provincial research and development 4,250 5,600

1,446,975 1,242,628

OTHER EXPENSESGrants (Note 8) 1,048,164 1,046,777CCA legal assessment (Note 9) - 147,315ABP matching funds for Marketing Campaign - 129,755Research commitments, conditionally restricted fund - 17,500Producer Loyalty Partnership Program 4,786 1,237Provincial research and development 4,674 6,940

1,057,624 1,349,524

EXCESS OF REVENUE OVER EXPENSES BEFORE OPERATINGEXPENSES 4,920,248 4,662,332

OTHER EXPENSESOperating Expenses (Schedule 1) $ 5,082,506 $ 4,859,272Amortization of furniture and equipment (Note 6) 11,120 13,250

5,093,626 4,872,522

DEFICIENCY OF REVENUE OVER EXPENSES $ (173,378) $ (210,190)

See notes to financial statementsAlberta Beef Producers page 3

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ALBERTA BEEF PRODUCERSStatement of Financial PositionMarch 31, 2019

2019 2018

ASSETSCURRENT

Cash $ 2,002,603 $ 441,253Operating Reserve Fund, Following year (Note 3) 4,530,898 5,303,000Investments (Note 4) 7,751,585 7,582,325Service charge receivable 2,525,762 1,578,305Interest and other receivables 401,729 348,314Prepaid expenses 23,035 22,942Inventory (Note 5) 5,115 7,148

17,240,727 15,283,287

OPERATING RESERVE FUND, Future years (Note 3) 1,100,000 1,100,000

FURNITURE AND EQUIPMENT (Note 6) 29,167 39,351

$ 18,369,894 $ 16,422,638

LIABILITIES AND NET ASSETSCURRENT

Accounts payable and accrued liabilities $ 2,280,954 $ 1,410,972Goods and Services Tax payable 40,471 39,546Alberta marketings held in trust 1,674,584 1,547,460Deferred revenue (Note 7) 1,768,785 646,182

5,764,794 3,644,160

COMMITMENTS (Note 10)

NET ASSETSTrade Advocacy Reserve Fund (Note 3) 4,336,000 4,336,000Operating Reserve Fund, Following year (Note 3) 4,530,898 5,303,000Operating Reserve Fund, Future years (Note 3) 1,100,000 1,100,000Invested in Furniture and Equipment (Note 6) 29,167 39,351Unrestricted 2,609,035 2,000,127

12,605,100 12,778,478

$ 18,369,894 $ 16,422,638

ON BEHALF OF THE BOARD

_____________________________ Director

_____________________________ Director

See notes to financial statementsAlberta Beef Producers page 5

ALBERTA BEEF PRODUCERSStatement of Cash FlowYear Ended March 31, 2019

2019 2018

OPERATING ACTIVITIESDeficiency of revenue over expenses $ (173,378) $ (210,190)Items not affecting cash:

Amortization of furniture and equipment 11,120 13,250Loss on disposal of furniture and equipment - 161Change in unrealized (loss) gain on investments held at year

end (61,161) 50,967

(223,419) (145,812)

Changes in non-cash working capital:Service charge receivable (947,457) (224,190)Interest and other receivables (53,415) 421,695Prepaid expenses (93) (5,919)Inventory 2,033 9,976Goods and Services Tax payable 925 11,117Accounts payable and accrued liabilities 869,982 (760,390)Alberta marketings held in trust 127,124 (109,758)Deferred revenue 1,122,603 (367,834)

1,121,702 (1,025,303)

Cash flow from (used) by operating activities 898,283 (1,171,115)

INVESTING ACTIVITIESPurchase of investments (2,673,156) (2,947,000)Proceeds from sale of investments 2,565,057 2,795,156Purchase of furniture and equipment (936) (7,387)

Cash flow used by investing activities (109,035) (159,231)

INCREASE (DECREASE) IN CASH 789,248 (1,330,346)

CASH - BEGINNING OF YEAR 6,844,253 8,174,599

CASH - END OF YEAR 7,633,501 6,844,253CASH CONSISTS OF:

Cash $ 2,002,603 $ 441,253Operating reserve fund, following year (Note 3) 4,530,898 5,303,000Operating reserve fund, future years (Note 3) 1,100,000 1,100,000

$ 7,633,501 $ 6,844,253

See notes to financial statementsAlberta Beef Producers page 6

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

1. DESCRIPTION OF BUSINESS

Alberta Beef Producers ("ABP") was incorporated under the Marketing of Agricultural Products Actfor the purpose of initiating and carrying out projects and programs to stimulate, increase andimprove the production and marketing of cattle and cattle products. Effective since April 1, 2018,ABP is authorized under its Plan Regulation and Commission Regulation to collect a $2.00refundable Alberta service charge and a $2.50 (2018 - $1.00) non-refundable National Levy fromproducers who sell or who are in the business of feeding and slaughtering their own cattle ("AlbertaService Charge and Levy").

The National Levy is paid to the Canadian Beef Check-Off Agency ("the Agency"). The NationalLevy is paid to the Agency by all the provincial cattle associations to fund research, marketdevelopment and promotion projects for the benefit of Canadian producers.

Effective April 1, 2018, the ABP Board of Directors allocates the National Levy as follows: anAgency fee of 5.43% is withheld to enable the Agency to operate and thereafter the net funds areallocated 50% to Canada Beef ("CB"), 44% to Beef Cattle Research Council ("BCRC"), and 6% toPublic and Stakeholder Engagement.

ABP meets the qualification of a not-for-profit organization as defined in paragraph 149(1) of theIncome Tax Act, Canada and as such is exempt from income taxes.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian accounting standardsfor Not-for-Profit Organizations. Significant accounting policies observed in the preparation of thefinancial statements are summarized below.

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash consist of cash on deposit, less cheques issued.

Financial statement presentation

ABP has chosen to continue to present net assets invested in furniture and equipment as a separatecategory of internally restricted net assets.

(continues)

Alberta Beef Producers page 7

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue recognition

The Alberta Service Charge (Note 1) collected is held in trust until such time as the refund period iscomplete. When the number of marketings retained is known, the revenue is recognized. Therevenues reported represent Alberta Service Charge collected and management's best estimate ofuncollected fees. Due to the uncertainties in the industry reporting, there may be adjustments infuture periods and such adjustments may be material to the financial position of ABP.

ABP pays a dealer rebate of $0.05 per head to those who collect and remit the Alberta ServiceCharge and Levy collected on behalf of ABP.

ABP follows the deferral method of accounting for contributions, which includes government grants.Grant revenue is recognized in accordance with the terms of the grant agreements when received orreceivable if the amounts to be received can be reasonably estimated and collection is reasonablyassured.

Investment income includes interest and realized and unrealized gains and losses on investments.Revenue from investments and other income is recognized on an accrual basis as it is earned.

Budgeting process

The net revenues remaining from the Alberta Service Charge and Levy collected less refunds of theAlberta Service Charge and payments to the National Agency in one year are to be used for thefollowing year’s draft budget. This process of collecting net revenue one year for the followingyear's expenditures enables ABP to budget effectively and ensure there are funds available for coreoperations. The budget is finalized once the total amount available to be spent is known.

Refunds

The Alberta Service Charge and Levy is payable by producers who sell cattle and by producers whofeed and slaughter their own cattle. The Alberta Service Charge paid by or on behalf of a produceris refundable to that producer on request of that producer. A producer could request a refund of allor a portion of the $2.00 Alberta Service Charge. The National Levy is non-refundable. The refundis only available to Alberta residents selling or feeding and slaughtering cattle in Alberta.

Interprovincial marketings

When non-Alberta residents sell cattle in Alberta, the purchaser or livestock dealer is deducting andremitting a $4.50 (2018 - $3.00) Federal Levy and not the Alberta Service Charge and Levy. The$4.50 (2018 - $3.00) Federal Levy is collected by ABP on behalf of the Canadian Beef Check-OffAgency. Payments of the Federal Levy are forwarded to the Agency for national beef cattleresearch, marketing and promotion projects for the benefit of Canadian producers. The Agency paysa portion of the Federal Levy to the provincial cattle association in the province where the sellerresides. When an Alberta resident sells cattle in another province, the provincial cattle associationin that province is, in turn, collecting the Federal Levy from the Alberta producer. The Federal Levyis non-refundable.

(continues)

Alberta Beef Producers page 8

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Investments

Investments are recorded at market value. ABP's investments consist of government bonds whichare held primarily for trading purposes. The portfolio is managed by a third party investmentmanager and is subject to an investment policy set by the Board of Directors and which has as itsmain objective the growth and preservation of capital. Transition costs are recognized immediatelyin the statement of operations.

Inventory

Inventory is valued at the lower of cost, determined on an average cost basis, and net realizablevalue. Net realizable value is the estimated selling price in the ordinary course of business lessestimated selling costs. Cost of inventories includes materials and other costs incurred in bringingthe inventories to their present location and condition.

Furniture and equipment

ABP provides amortization on its furniture and equipment using the straight-line method at thefollowing rates:

Furniture and fixtures 10 yearsComputer equipment 4 yearsAudio-visual equipment 5 years

Financial instruments

All financial instruments are initially measured at fair value, and, unless otherwise noted, ABPsubsequently measures its financial instruments at amortized cost.

Measurement uncertainty

The preparation of financial statements in conformity with Canadian accounting standards for Not-for-Profit Organizations requires management to make estimates and assumptions that affect thereported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the period.Such estimates are periodically reviewed and any adjustments necessary are reported in earnings inthe period in which they become known. Actual results could differ from these estimates. Theseestimates included the useful lives of the furniture and equipment, collection of Alberta ServiceCharge, collectability of accounts receivable and inventory obsolescence.

Disclosure of allocated expenses

ABP has chosen to continue to classify their expenses by function and allocate their expenses to anumber of functions to which the expenses relate. ABP has allocated salary expenses toOperational Expenses and to Administrative Expenses (Note 13).

Alberta Beef Producers page 9

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

3. INTERNALLY RESTRICTED NET ASSETS

Trade Advocacy Reserve Fund

In 2005, the Board of Directors passed a motion to establish a reserve fund for the purpose of futuretrade advocacy and legal defence projects.

In 2019, the transactions in the fund consisted of expenses of $nil (2018 - $147,315) and a transferfrom the Unrestricted Fund in the amount of $nil (2018 - $120,735).

Withdrawal Transfer 2019 2018

Balance, beginning of year $ - $ - $ 4,336,000 $ 4,362,580Payment of CCA legal assessment - - - (147,315)Motion to transfer funds into fund - - - 120,735

$ - $ - $ 4,336,000 $ 4,336,000

Operating Reserve Fund

On April 30, 2009, the Board of Directors passed a motion to establish a reserve fund for thepurpose of allocating operational funds for the following budget years.

2019 2018

Balance, beginning of year $ 5,303,000 $ 4,296,549Transferred from the fund for operations in current year (5,303,000) (4,296,549)Allocation from the current year to the following year's operations

budget 4,530,898 5,303,000

$ 4,530,898 $ 5,303,000

Operating Reserve Fund, future years

In 2010, the Board of Directors established this fund to cover budget shortfalls caused by short-term declines in cattle marketings during the cattle cycle. The purpose of this fund is to allow ABPto maintain a high level of services for the benefit of producers during these periods. The cattleherd in Alberta is currently at a low level and the Board of Directors expects that the number ofmarketings will be low over the next few years as the herd is rebuilt.

2019 2018

Balance, beginning of year $ 1,100,000 $ 1,500,000Motion to transfer funds out of the fund - (400,000)

Balance, end of year $ 1,100,000 $ 1,100,000

Alberta Beef Producers page 10

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

4. INVESTMENTS2019 2019 2018 2018

Cost Fair Value Cost Fair Value

Bonds:Provincial government,

bearing yield rates rangingfrom 1.35% to 3.20%, duebetween June 2019 andDecember 2021 $ 7,667,406 $ 7,751,585 $ 7,559,308 $ 7,582,325

Although some of the bonds have maturity dates beyond one year, due to their ability for promptliquidation, all have been classified as current assets.

Interest and other income is comprised of the following:2019 2018

Interest on investments $ 141,476 $ 140,048Change in unrealized gain (loss) in investments held at

year end 61,162 (50,967)

202,638 89,081Interest on bank balance 145,962 84,969Other income 2,220 3,701

$ 350,820 $ 177,751

5. INVENTORY

2019 2018

Inventory consists of the following:Promotional items $ 5,115 $ 7,148

During the year ended March 31, 2019, ABP expensed $12,371 (2018 - $15,364) of its inventory inthe regular course of operations and had no inventory write-downs.

6. FURNITURE AND EQUIPMENT2019 2018

Cost Accumulated Net book Net bookamortization value value

Furniture and fixtures $ 46,679 $ 25,131 $ 21,548 $ 26,217Computer equipment 19,347 12,115 7,232 11,655Audio-visual equipment 10,378 9,992 387 1,479

$ 76,404 $ 47,238 $ 29,167 $ 39,351

Alberta Beef Producers page 11

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

7. DEFERRED REVENUE

Opening AdditionsRecognitionof Revenue 2019 2018

AG Plastics - 1,000,000 - 1,000,000 -

Knowledge Transfer Grant - 475,000 (35,606) 439,394 -

Substantivity Measurement - 167,378 (40,833) 126,547 -

Climate Change Extension Initiative 112,000 - (14,815) 97,185 112,000

Targeted Antimicrobial UseResistance Research Call $ 221,707 - (166,280) 55,427 221,707

Rancher Research Pilot Project 94,458 19,350 (90,872) 22,936 94,458

Alberta on the Plate - 18,000 - 18,000 -

Environment Grant 25,342 - (21,602) 3,740 25,342

AHI Investigation Summary andProducer Education InformationProgram (1) 3,276 - - 3,276 3,276

Cow Calf Sector SustainabilityExtension Initiative 2,000 - 280 2,280 2,000

Satellite Derived Forage InsuranceGrant - 281,545 (281,545) - -

Targeted Forage Research Call 187,399 - (187,399) - 187,399

Elastrator Bands Development Grant - 153,447 (153,447) - -

Alberta Beef: Marketing Campaign - 84,786 (84,786) - -

$ 646,182 $ 2,199,506 $(1,076,905) $ 1,768,785 $ 646,182

(1) Funds from the Animal Health Investigator (AHI) program are earmarked for producer educationand awareness programs regarding the effects of the oil and gas industry on cattle health.

Refer to Note 8 for details of the external restrictions on these amounts.

Alberta Beef Producers page 12

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

8. GRANTS

2019 2018

Satellite Derived Forage Insurance Grant $ 281,545 $ 195,460Targeted Forage Research Call 187,398 206,025Targeted Antimicrobial Use Resistance Research Call 166,280 248,291Elastrator Bands Development Grant 153,447 97,170Rancher Research Pilot Project 90,873 2,492Alberta Beef: Marketing Campaign 56,047 100,000Sustainability Assessment Tool and Extension Pilot Grant 40,831 -Knowledge Transfer Grant 35,606 -Environmental Grant 21,602 -Climate Change Extension Initiative 14,815 -Wood Buffalo Biosecurity Grant - 76,938Farm Feedlot Sampling Grant - 2,400Cow Calf Sector Sustainability Extension Initiative (280) 118,000

$ 1,048,164 $ 1,046,776

Satellite Derived Forage Insurance GrantABP has received funding from the Agriculture and Agri-Food Canada AgriRisk Initiatives Programfor a project entitled, Assessing the Feasibility and Development of an Innovative Forage InsurancePlan using Satellite-Derived Biophysical Parameters with a focus on Alberta. It is a two-year projectthat was suggested to ABP by the Agriculture Financial Services Corporation in Alberta. Ourindustry has been looking for better forage and pasture insurance programs for some time and wehope this project will contribute to the development of more effective programs. ABP has engagedthe University of Manitoba as the lead researcher on the project and AgReSoft Enterprises Ltd. as aconsultant on the project. ABP will provide in-kind project management services, but will not becontributing cash to the project. $281,546 (2018 - $195,460) was recognized as revenue whichagrees to to the eligible expenses incurred.

Targeted Forage Research CallIn 2015, Alberta Livestock and Meat Agency (ALMA) provided ABP with a $950,000 grant toadminister and deliver a call for research proposals in the area of forage. $187,399 (2018 -$206,025) was recognized as revenue and eligible expenses. The project is complete as of March29, 2019.

Targeted Antimicrobial Use Resistance Research CallIn 2016, ALMA provided ABP with a grant in the amount of $1,425,000 to administer and deliver acall for research proposals in the area of antimicrobial use and resistance (AMU/AMR). With thedissolution of ALMA, this grant agreement has continued between ABP and Alberta Agriculture andForestry. $166,280 (2018 - $248,291) was recognized as revenue and eligible expenses.

Elastrator Bands Development GrantIn 2017, ABP received a grant from the Canadian Agricultural Adaptation Program for thedevelopment of analgesic elastrator bands. $153,447 (2018 - $97,170) was recognized as revenueand eligible expenses incurred. The project was complete as of April 10, 2019.

Rancher Research Pilot ProjectIn 2017, Alberta Agriculture and Forestry provided ABP with a grant in the amount of $109,350 tocarry out an extension project encouraging the adoption of new management practices,technologies, and innovations on a subset of pilot ranches in Alberta. $90,873 (2018 - $2,492) wasrecognized as revenue and eligible expenses incurred.

(continues)

Alberta Beef Producers page 13

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

8. GRANTS (continued)

Alberta Beef: Marketing CampaignIn 2017, Minister of Alberta Agriculture and Forestry provided ABP with $184,786 for use in a twoyear provincial marketing campaign. $56,047 (2018 - $100,000) was recognized as revenue andeligible expenses incurred.

Sustainability Assessment Tool and Extension Pilot GrantIn late 2018, Alberta Agriculture and Forestry approved a grant to ABP in the amount of $239,112for a Sustainability Assessment Tool and Extension Pilot project that involves adapting asustainability assessment tool for use in Canada, encouraging producers to come together in theiruse of the tool, and increasing producer understanding of practices that will improve thesustainability of their operations. ABP received the initial payment of $167,378.40 on this grant.$40,831 was recognized as revenue and eligible expenses incurred.

Knowledge Transfer GrantIn 2018, Alberta Agriculture and Forestry provided ABP with a grant in the amount of $500,000 tocarry out knowledge translation and transfer (extension) activities related to managing grazing inaverage and extreme conditions, species/variety selection for regional adaptation, and criticalelements of animal nutrition and feed quality, along with an expansion of the Rancher ResearcherPilot project, and to facilitate the transfer of valuable information from foragebeef.ca tobeefresearch.ca. $35,606 was recognized as revenue and eligible expenses incurred.

Environment GrantIn 2012, ABP received a grant from Alberta Agriculture and Rural Development (ARD) for anOverwintering Sites project. $21,602 (2018 - $nil) was recognized as revenue and eligible expensesincurred.

Climate Change Extension InitiativeABP received a grant from Alberta Agriculture and Forestry (AF) to undertake a two-year ClimateChange Extension Initiative. The purpose of the grant is to develop and implement beef cattleclimate change practices among cattle and beef producers and increase participation in the project,an extension coordinator will be hired to develop and implement the program while working with AFand ABP staff. ABP will be providing in-kind project management services and in-kind support forthe extension coordinator. $14,815 (2018 - $nil) was recognized as revenue and eligible expensesincurred.

Wood Buffalo Biosecurity GrantIn 2012, Growing Forward provided ABP with an initial grant to assist with costs related to a studyon tuberculosis and brucellosis present in bison outside Wood Buffalo National Park. In 2014,Growing Forward 2 provided ABP with a second grant of $425,450 to continue work on this project.$Nil (2018 - $76,938) was recognized as revenue which agrees to the eligible expenses incurred.

Farm Feedlot Sampling GrantIn 2015, the Public Health Agency of Canada entered into an agreement with ABP to assist with on-farm feedlot sampling for the Canadian Integrated Program for Antimicrobial ResistanceSurveillance (CIPARS) and FoodNet Canada. The total value of the contract is $12,600. $Nil (2018- $2,400) was recognized as revenue and eligible expenses incurred.

Cow Calf Sector Sustainability Extension InitiativeIn 2017, Growing Forward II provided ABP with $120,000 for the use in a one year study on cow calfsustainability extension initiatives. ($280) (2018 - $118,000) was recognized as revenue and eligibleexpenses incurred.

(continues)

Alberta Beef Producers page 14

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

8. GRANTS (continued)

Alberta on the PlateDuring the year, ABP received $18,000 from the Government of Alberta for match funding forAlberta on the Plate initiative celebration to take place in August 2019 during the Canadian AG. Thisproject will be cost shared with other commodities.

Ag Plastics Recycling Pilot Project GrantIn February of 2019, Alberta Agriculture and Forestry provided ABP with a grant in the amount of$1,000,000 for a three-year ag plastics recycling pilot project that will expand ag plastics recyclingcollection sites and services in Alberta leading to the development of a permanent and sustainableprovincial ag plastic recycling program. ABP will be the program administrator of the grant for theproject, while the Agricultural Plastics Recycling Group will provide advisory and oversight servicesfor the project.

Alberta Beef Producers page 15

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

9. RELATED PARTY TRANSACTIONS

National Organizations:

The Alberta Beef Producers Plan provides for ABP to be the provincial member of and contributefunds to the national organizations. As a contributing organization, ABP is entitled to representationas follows:

1. Canadian Cattlemen's Association (CCA)a) The number of seats on the Board of Directors of the CCA is based upon the proportionate

share of the CCA annual assessment. Effective July 1, 2012, ABP is entitled to seven ofthe twenty-eight seats.

2. Canadian Beef Check-Off Agency (the "Agency"). As a contributing organization, ABP isentitled to representation as follows:

a) The AgencyAlberta is entitled to two of sixteen seats on the Board of Directors of the Agency and byagreement, these seats are divided between ABP and the Alberta Cattle Feeders'Association. Canada Beef is the Marketing and Promotion Committee of the Agency.

Public and Stakeholder Engagement is a national check-off initiative jointly operated byCCA and Canada Beef.

b) Beef Cattle Research Council (BCRC)BCRC is responsible for providing research services for the Agency. A number ofrepresentatives to the Beef Cattle Research Council based on its proportionate share oftotal funding. For the year ending March 31, 2019 ABP was entitled to four of the elevenseats.

3. Payments

2019 2018

CCA Monthly Assessments Payments $ 1,766,280 $ 1,541,137

CCA, Other Research project funding, BCRC $ 27,047 $ 139,460 Young Cattlemen's Council, membership 2,500 2,000 Canadian Round Table for Sustainable Beef Project 2,000 2,500 CCA Legal Assessment - 147,315 VBP + Enhanced Tools Project - 50,000

$ 31,547 $ 341,275

(continues)

Alberta Beef Producers page 16

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

9. RELATED PARTY TRANSACTIONS (continued)

ABP made additional payments to the foregoing parties for contracted services as follows:

2019 2018

Payments to Canfax, a division of CCA:Membership and services $ 53,400 $ 53,400Communications 10,200 10,200Research projects - 12,000

% 2019 % 2018

Canadian Beef Check-Off AgencyThe National Agency %5.43 $ 506,587 %- $ -

The net balance has been allocated asfollows:

Canada Beef %50.00 4,448,172 %80.00 2,915,330Beef Cattle Research Council %44.00 3,891,231 %20.00 728,833Public and StakeholderEngagement %6.00 529,369 %- -

$ 9,375,359 $ 3,644,163

These transactions are in the normal course of operations and are measured at the exchangeamount, which is the amount of consideration established and agreed to by the related parties.

2019 2018

Amounts payable at March 31, 2019 to the following:

Canadian Beef Check-Off Agency $ 1,434,690 $ 1,130,006Canadian Cattlemen's Association - Funding for research

project 2,048 -

Amounts receivable at March 31, 2019 from the following:

Canadian Beef Check-Off Agency $ 432 $ 5,495

Amounts receivable and payable at year-end are in the normal course of operations. The amountowing to and from Canadian Beef Check-Off Agency includes the monthly collection of the NationalLevy and the province of origin amounts.

Alberta Beef Producers page 17

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

10. COMMITMENTS

Operating leases:

ABP leases office space and equipment under various operating leases. The future minimum leasepayments over the next five years and thereafter are as follows:

2020 $ 152,0642021 158,8622022 160,0412023 156,5472024 159,701Thereafter 28,328

$ 815,543

Commitment to Edmonton Valley Zoo

In 2019, a $30,000 ten year agreement was signed with Valley Zoo Development Society to helpfund the bovine enclosure in the Urban Farm, $3,000 per year with the final payment due March2028.In 2019, one payment was made for $3,000.

Alberta Beef Producers page 18

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

11. DIRECTOR, DELEGATE AND NON-DELEGATE EXPENSES

With respect to payment of honoraria and the reimbursement of expenses to producers elected as adelegate or a director and to the payment of the daily allowance and reimbursement of expenses toproducers not elected as a delegate or director of ABP who worked as a delegate or director of ABPwith respect to authorized ABP programs or activities, the following director and delegate honoraria,and non-delegate daily allowances, and expenses are included in each of the categories is asfollows:

2019 2018

Board of Directors and Board Representatives $ 76,386 $ 60,407Annual General Meeting 57,289 49,831Executive Committee 49,207 50,146Semi-annual Meeting 28,316 31,703Enhanced Federal Lobbying 26,103 20,256Cow Calf Council 20,797 27,509U.S. and International Trade Management 17,015 13,938Fall producer meetings and Resolution Policy Development 16,548 18,930Canadian Cattlemen's Association 12,926 16,414Cattle Feeder Council 9,652 10,270Provincial Advocacy 8,033 9,209Research Committee 6,834 4,272Industry Partnerships 6,141 3,578Animal Health and Welfare 4,960 13,473Audit and Governance Committees 3,956 1,701Marketing and Education 3,821 1,912Zone Committees 3,054 3,427Canadian Beef Check-Off Agency 1,235 225Environment Committee 717 1,408Beef Cattle Research Council 670 525Communications 225 343

$ 353,885 $ 339,477

Alberta Beef Producers page 19

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

12. FINANCIAL INSTRUMENTS

ABP is exposed to various risks through its financial instruments. The following analysis providesinformation about the ABP's risk exposure and concentration as of March 31, 2019. Unlessotherwise noted, ABP's risk exposure has not changed from the prior year.

Credit, liquidity and price risk

ABP has a comprehensive risk management framework to monitor, evaluate and manage theprincipal risks assumed in investments. The risks that arise from transacting financial instrumentsinclude credit risk, liquidity risk, and price risk. Price risk arises from changes in interest rates,foreign currency exchange rates, and market prices. ABP does not use derivative financialinstruments to alter the effects of these risks. ABP manages these risks using extensive riskmanagement policies and practices, including various Board-approved asset mix strategies and riskmanagement limits.

Changes in interest rates and credit ratings are the main cause of changes in the fair value ofgovernment bonds resulting in a favourable or unfavourable variance compared to book value.Credit risk is mitigated by investing in securities with a rating of BBB or better and diversifying thesecurities. Interest rate risk is mitigated by managing maturity dates and payment frequency. ABPis also exposed to interest rate fluctuations on its cash balances. A sensitivity analysis for interestrate risk has not been performed for the year ending March 31, 2019 as the effect of a change ininterest rates would have been minimal as the interest on the existing cash on hand is not a materialamount. ABP limits credit risk associated with accounts receivable by dealing with counterpartiesthat it believes are creditworthy. ABP has a significant number of customers which minimizesconcentration of credit risk.

13. ALLOCATION OF EXPENSES

The salaries of the Executive Director and Controller have been allocated proportionately asdetermined by the Board of Directors on an annual basis. Costs that can be directly attributable tothe individual programs and functions have been allocated to the specific programs and functions.

Operational Expenses Administrative Expenses

2019 2018 2019 2018

Executive Director 40% 40% 60% 60%Controller 30% 30% 70% 70%

Alberta Beef Producers page 20

ALBERTA BEEF PRODUCERSNotes to Financial StatementsYear Ended March 31, 2019

14. SUBSEQUENT EVENTS

Subsequent to year end, Alberta Agriculture and Forestry approved grant funding of $3,000,000 toABP to assist with the costs associated with a Strategic Initiative Supporting Feed Grain and ForageProduction and Utilization in Alberta.

Subsequent to year end, the Board of Directors passed a motion to move $597,102 fromunrestricted net assets to the 2019-2020 operating reserve budget for a total budget of $5,128,000;this leaves $2,011,933 in unrestricted net assets.

Subsequent to year end, the Board of Directors signed an agreement with the Alberta CattleFeeders' Association (ACFA) to increase collaboration in the Alberta beef industry which focuses onworking together for the benefit of producers and the industry.

Effective April 1, 2019, the Agency fee will change from 5.43% to 5% and thereafter the net fundswill be allocated based on the following ratios, 50% to Canada Beef ("CB"), 44% to Beef CattleResearch Council ("BCRC"), and 6% to Public and Stakeholder Engagement.

Effective April 1, 2020, the net funds will be allocated 60% to Canada Beef ("CB"), 32% to BeefCattle Research Council ("BCRC"), and 8% to Public and Stakeholder Engagement.

15. COMPARATIVE FIGURES

Some of the comparative figures have been reclassified to conform to the current year'spresentation.

Alberta Beef Producers page 21

ALBERTA BEEF PRODUCERSOperating Expenses (Schedule 1)Year Ended March 31, 2019

2019 2018

National Policy and Trade Advocacy Programs:Canadian Cattlemen's Association (Note 9) $ 1,766,280 $ 1,541,137U.S. and International Trade Management 31,443 20,777Enhanced Federal Lobbying 28,506 23,315National Governance and Oversight 17,768 20,491

Organizational Expenses:Annual General Meeting 114,788 101,968Board meetings and Board appointed representatives 104,417 76,317Fall producer meetings and resolution policy development 87,298 94,349Semi-annual Meeting 66,374 65,550Zone Committees 55,013 57,274Executive Committee 50,363 51,191Annual Report 48,333 48,475Governance Committee 3,785 2,101Audit Committee 635 410

Operational Expenses: (Note 13)Salaries and benefits related to programs 597,191 578,403Marketing and Education 306,177 287,226Communications 274,658 240,927Industry Partnerships 221,263 181,886Service Charge Campaign 185,843 12,511Research Committee 83,878 65,040Canfax Membership and Services (Note 9) 53,400 53,400Cattle Feeder Council 51,759 28,260Feed Grain Research Project 50,000 100,000Project reserve fund 30,900 267,300Sponsorships 30,307 33,857Cow Calf Council 29,902 41,768Environment Stewardship Awards 19,384 18,843Provincial Advocacy 14,270 14,819Industry Collaborations 14,165 3,257Animal Health and Welfare 7,580 17,616BCRC Science Cluster - 100,000

Administrative Expenses: (Note 13)Rent, office supplies and equipment 382,471 376,407Salaries and benefits 315,695 297,833Legal, audit and consulting 38,660 36,564

$ 5,082,506 $ 4,859,272

See notes to financial statementsAlberta Beef Producers page 22