Hello everyone,

As the harvest season winds down, we often turn our focus to administrative tasks that have

been put off. Producers are reminded to register annually with the PEICP after Oct 1. This is a

regulation requirement which provides the Board with important information needed for

various programs. I also want to remind you to apply for the Beef Industry Initiative programs.

The deadline is December 31, 2015, while all relevant information needs to be in before March

1, 2016. Some of you have asked if there is still funding left. We have not been maxing out

the program in recent years and we still have funding available for this, so don’t delay in

applying! Just a reminder to those applying for the Commercial Heifer Program, we will pay

out on the first five heifers that qualify, and we will pay on any additional qualifying

Commercial Heifers on a pro-rated basis.

Inserted with this newsletter, you will find a Bulletin regarding the National Beef Strategy.

Please read it over carefully. Just a reminder that we will have representatives from the

National beef organizations in to speak to you about the strategy and the roles they will play in

implementing it. We will also be discussing an increase to the levy that will be required to

fund the strategy. Please make an effort to attend one of the two meetings we have scheduled.

The levy increase will affect you, so now is your chance to have your say.

I am pleased, that my health has allowed me to continue serving you as the Chair of the

PEICP. It has been a challenging summer but I have completed my treatments so things should return to normal. I would like to express my sincere thanks to everyone who organized and

attended the Social for me at the Linkletter Community Centre. To the many familiar faces

from near and far, I cannot fully express in words, how very grateful I am for all of your

support.

Sincerely, Brian Morrison

Chairman’s Message

President’s Message 1

PEI Certified Beef 2

Levy review 3

ABP Grid and Age Verification 3

GF2 Beef Programming 4

Verified Beef Production 4

Inside this issue:

PEI DEPARTMENT OFAGRICULTURE&FISHERIES

Volume 7

November 2015 By Brian Morrison

Department Website

Important dates

November 17th 2015 Fall District Meeting at the Farm Center

November 18th 2015 Fall District Meeting, 12 Redwood Ave, Slemon Park Summerside

Agriculture Livestock Enhancement -Beef programs - deadline for Herd Health

application is December 31, 2015, receipts, etc due by March 1, 2016

Beef program deadline for all other applications/receipts - March 1, 2016 no exceptions

PEI Cattle Producers cattlemen@eastlink.ca (902) 368-2229

CCA Daily Update www.cattle.ca 1-866-463-6222

Maritime Cattle Market Report www.atlanticstockyards.com

Canfax Boxed Beef Report www.canfax.ca

OCA Market Report www.cattle.guelph.on.ca

CFIA Transportation Emergencies www.inspection.gc.ca 1-877-814-2342

Dr Les Halliday ljhalliday@gov.pe.ca (902) 314-0827

Agriculture Information Officer (902) 368-4145 or 1-866-PEIFARM (743-3276)

Page 2

Certified Island Beef:

VOLUME 7

Hello Producers,

Island Sobeys stores are very pleased to become the first major retailer in Canada to

sell Certified Island Beef (CIB). The main reason they chose to sell CIB was

because it is a local product. Other reasons include the certification of the brand, the

attributes, the story behind the brand and its two year track record selling in the

Toronto area.

Brand producers have taken courses on handling animals in more humane ways, and

running farms that cause the cattle less stress. The cattle must also be kept drug-free

at least 100 days before slaughter. This dedication from producers is followed by a

premium. There is a $110 premium that is paid on every animal that is sold which is

split between the cattle farmers, the Island beef plant and the Food Island

Partnership, which markets the meat.

Many of the Sobeys managers told us they have been getting a

lot of requests for Island beef and were pleased with the

standards that have been developed for the CIB program. Others

tell us they had heard about CIB from folks who purchased CIB

in Ontario butcher shops and restaurants.

It was pretty sweet to see CIB beef in the meat case, something

that we have been working very hard to achieve. Producers will

finally be able to display their CIB farm-gate signs and direct

consumers to Sobeys where they can purchase it locally.

This is your product; you can be proud to see it clearly identified

as PEI Certified on the stores shelves, and promoted in Sobeys

flyers. We want to thank all of our current CIB producers for

their help in establishing and developing this market. With

expansion into Sobeys we expect the brand will grow with a

more consistent demand for the product.

We urge other producers to join the CIB program.

For more information on the CIB program, please call the PEICP

office at 902-368-2229

Congratulations to all who helped make this happen!

Importance of Age Verification

Age Verification is the association of animal

birth date data with an Animal Identification

Number (Single Tag or Tag Group). This free

of charge program enables producers to store

birthdate information and have it readily avail-

able. Producers who do not have internet ac-

cess can assign a third-party user. The PEICP

offer this service free of charge; so, if you

would like to age verify your calves we can do

it for you.

Due to BSE cases in Canada, our major trading

partners have placed restrictions on the allow-

able age of imported cattle and beef. These

trade markets demand age verified beef from

young animals to meet their food safety re-

quirements. OTM (Over Thirty Months) can be

costly to the feedlot producer. For instance, if

an animal was processed and was 800lb carcass

weight at $3.21/lb but determined to be OTM

without the birth certificate the producer will then be discounted $0.20/lb. The producer can

lose up to $160 on this animal that could have

been prevented if the animal had been age veri-

fied.

Animals that go OTM to the plant also slow

down production. When an animal comes up to

the head gate just before being processed denti-

tion is used to determine the age of the animal

if a birth certificate was not provided.

If the animal is determined to be OTM then separate equipment must be used on the animal and must be segregated from the regular

line. The animal is marked with a blue line on the spine to make sure it is known to be OTM. This could be prevented if they were

age verified and birth certificates were provided. If you age verify you can also apply for $50 rebate per year through the Beef In-

dustry Initiative.

If you would like more information on how to Age Verify please contact our office at the PEI Cattle Producers Office at 902-368-

2229.

VOLUME 7 Page 3

Atlantic Beef Products Grid Changes:

For the past several years the PEICP has been closely monitoring it’s levy income. This amount is used to cover the office

administration and to pay allocations to the Canadian Cattlemen Association and Canada Beef. Each year has become

increasingly challenging to meet these demands. There are currently agreements in place with the Canadian Cattlemen’s

Association and Canada Beef that have allowed us to pay a portion of the commitment cost. However, there has been

increasing pressure for us to pay our full obligation. For this reason we are conducting a review of our current levy system

which will include levy amounts and collection points. During the fall district meetings in November we will share our

findings, and we hope to outline our proposal for the collection of our revised levy system.

We have commitment from the Canadian Cattlemen’s and Canada Beef to be present at these meetings to answer any

questions you may have. We have asked both organizations to provide us with an overview of programs and services they

offer for producers. We hope you take the time to attend one of these meetings to gather information and provide your

feedback. These meetings will take place November 17 at the Farm Center in Charlottetown and November 18th at 12,

Redwood Ave, Slemon Park, Summerside.

Levy Review:

GF2 Beef Programming - Livestock Development Program:

Page 4 VOLUME 7

The beef project is being administered through the PEICP so applications should be dropped off there. There are 5 different sub-

programs under the 2015 Livestock Development Program: Premium Sires; Seedstock Testing; Feed Efficiency; Replacement Heifer

and Herd Health. A brief overview of the programs and their requirements and incentives is listed below:

For more information visit beef programs at the Department website.

Premium Sires: Purchased purebred bulls may be eligible for an incentive of $350. Additional

incentives are available with maximum assistance up to $550. Purchased F1 Hybrid bulls may be

eligible for an incentive of $350 with additional incentives for up to a maximum assistance will be

$500.

Seedstock Testing: Consignors of test station bulls and heifers may be eligible for $300 per animal.

Bulls and heifers on home test may be eligible for a $50 incentive for genomic testing. Additional

incentives may apply for animals that undergo full bull breeding soundness exams; $100.

Replacement Heifers: Purebred Heifers (retained or purchased) may be eligible for an incentive of $200 for a heifer confirmed

pregnant to calve in the 2015/16 fiscal year. Additional incentives of $50 may apply. Commercial (retained only) heifers will be

eligible for an incentive of $150 for a commercial heifer (identified with CCIA RFID tag) confirmed pregnant to calve in 2015/16 fiscal

year.

Feed Efficiency: Assistance may be provided for: ration formulation, feed and pasture soil analysis (up to

50% of cost); Source and Age Verification protocols ($50/the entire herd for documented birth

certificates); feeding enhanced levels of vitamin E to meet brand specifications ($8/hd for each finished

animal which qualifies for CIB program); and trace mineral supplement bolus ($10/double bolus).

Assistance may also be provided in the following areas: Funding 50% of livestock scales and to a

maximum of $2500. 50% of livestock handling systems to a maximum of $3500. An incentive of $100/

heifer for feed efficiency research evaluation

Herd Health: Assistance may be provided for the implementation of documented on-farm whole herd

health protocols. Cow herd including bulls are vaccinated annually for IBR, BVD, PI3, BRSV. Calves are castrated a minimum of six

weeks prior to sale and less than eight months of age. Calves are dehorned a minimum of six weeks prior to sale. Calves are vaccinated

and boostered for IBR, PI3, BRSV, BVD as per manufacturer’s protocol. Calves are treated with endectocide for internal/external

parasites. Completed Herd Health questionnaires are required.

Applicants must have a Premise ID, be registered with the PEI Cattle Producers, attend a Verified Beef Production workshop and must

be in good standing with the PEICP (paying your deadstock fees or completing an on farm audit of your compost site). Your Premise

ID is a unique number created and issued by the Provincial Dept of Ag. To verify your Premise ID number, please contact the

Agriculture Information Desk at 902-368-4145. To register with the PEI Cattle Producers, go our website at

www.peicattleproducers.com. To schedule an appointment for the VBP course please contact our office.

Canada's beef producers already have a reputation for acting responsibly, but VBP takes that to a new level.

The program is part of a broad effort by Canada's food providers to ensure on-farm food safety.

Why does the industry want this program? Customers of Canadian beef buy because Canada is a safe and

wholesome source they can trust. But in order to maintain this trust, there must be improvement in each sector

and food safety is top of mind.

There are management options and benefits available to larger scale operations. VBP allows small producers

to have many of the management benefits of much larger operations. And it’s not really costly to achieve.

“Practically every producer who has taken the VBP course tells me they have learned something about their management system,” says

Miller. “Simple things like the fact they need to change how they mark and store medicated feeds, or if they have the tools to keep bet-

ter records. “VBP gives them a management framework that is as effective as the largest operations in the business. We help them think

about their management and what they are doing on-farm and they can see how to make improvements.”

We believe there are benefits to be gained from taking a VBP workshop; therefore we have encouraged all PEI producers applying for

programs under the Livestock Development program attend a VBP workshop. After taking a workshop, many producers have told us

that they apply the VBP recommendations to their operations. For more information, or to set up a workshop please contact the PEICP

at 902-368-2229

Verified Beef Production

Special BulletinSpecial Bulletin

November 9, 2015

National check-off funded

Program

The non-refundable National check-off levy paid by beef producers on each animal marketed provides funding for national research and promoting and marketing

Canadian beef. Canada Beef, the Beef Cattle Research Council, the Canadian Cattlemen’s Association and PEI cattle producers manage the programs funded by the National check-off and which fall under the National Beef Strategy Canada Beef

The Canadian Beef Cattle Research, Market Development and Promotion Agency, operating as Canada Beef, is the cattle producer-funded organization responsible for administrating the national check-off and for domestic and international beef and veal market development and promotion. Canada

Beef works to foster loyalty to the Canadian beef brand and build strong relationships with trade customers and partners. These efforts work to increase demand for Canadian beef and veal and ultimately the value producers receive for their cattle. A main element of the strategy continues to focus on enhancing loyalty to the Canadian beef brand. The strategy calls for significant investment in comprehensive consumer-directed marketing campaigns, leveraging brand license holders, and utilizing mainstream print and electronic multi-media applications to the domestic market where consumer perceptions can be most positively impacted. In international markets, the strategy focuses on creating Canadian beef brand awareness and commitment with key partners in key market segments that can deliver the highest value to the

beef industry. T he B e ef Ca t t l e Research Cou n ci l (BCRC), directed by a Council of beef producers from across the country,

funds leading-edge research to advance the Canadian beef cattle industry. Under the National Strategy, BCRC will maintain and enhance its long-term investments in priority research programs including: Beef Quality; Food Safety; Feed Efficiency; Forage, Grassland and Environment; and Animal Health and Welfare. All research programs support the long term competitiveness of the beef industry. Enhanced investments under the National Beef Strategy address research capacity and infrastructure in meat science and forage and feeds through the establishment of Research Chairs in meat science and forage breeding, agronomy and utilization. There will also be an increased focus on validating and supporting the Canadian Beef Advantage as well as extension and technology transfer to encourage greater uptake of research knowledge and technologies by producers and industry partners.

The Canadian Cattlemen’s Association (CCA), through its 27-member board, provides the leadership and unity necessary to speak as one voice on issues of importance to the beef cattle industry. In addition to the major issues such as trade, animal health and government and regulatory affairs which CCA addresses,

the National Beef Strategy proposes specific programs to deal with Issues Management and the maintenance of public and consumer confidence as it relates to beef production. We live in an information society where an issue anywhere in the world has the potential to be seen everywhere in the world within seconds. Being connected and prepared to communicate in a meaningful way when events occur can directly influence how these events impact our industry. A Reputation Management Strategy provides that elevated level of preparation, will increase capacity to be proactive with our great story and enables industry to respond in a timely manner for the benefit of the Canadian beef industry.

National Beef Strategy and

Increase Levy for PEI Cattle Producers

Message from the Chair

Hello, my name is Brian Morrison and as many of you know, I’ve been your Chair for a year and a half now. It’s been quite a learning experience! During this time I’ve been educated on how the Board works and how the office is run. I want you to know that we are very fortunate to such have a dedicated group of Directors and staff who are very committed to this industry. We’ve had our share of challenges. Following the announcement that producers would have to pay for on-farm deadstock removal, we faced the challenge and found a way to keep the service going. We’ve also had to take on the administration of the Beef Industry Initiative Program. Once again we had to make changes that would ensure your applications for BII programs were submitted for approval and that payments were processed. For the past 5 years, we’ve been involved in the development of the Certified Island Beef Brand. We’ve seen this premium brand evolve from a small number of cattle being sold through Dolan Foods in Ontario, to the distribution of CIB through Sobeys, PEI. Our board is continuously negotiating on your behalf with ABP on various issues. On the grid we were able to remove the .05 cent deduction for cattle between 600 and 650lbs and we were successful in convincing them to hold off the inevitable changes to the purebred Holstein that grade AA or AAA. We also reminded them to allow an adjustment period before changes to the grid are implemented. We are in constant negotiations with Provincial government seeking funding for programs while ensuring regulation changes are in step with current practices. The PEI Department of Agriculture has partnered with us in the extremely successful PEI Burger Love Campaign. This year we were able to add commercial heifers and re-introduce handling facilities to the Beef Industry Initiative program. We have renewed support for the CIB Value Chain Co-ordinator position and received assistance to conduct a strategy session and a study of the PEI Beef Industry that is currently underway. The results of the study will help us chart our course in the future. This year we successfully negotiated loans with the Finance PEI to assist producers who wanted to purchase feeders and breeding stock. Our next target is to secure infrastructure loans for buildings and equipment so that the industry can expand. Funding for our organization is crucial if we want to continue this level of industry support. It is also critical to trigger dollars for additional programs, marketing, promotion and research. For every dollar the industry is able to contribute, matching dollars as high as six times the contribution amount, ensure that work in these areas is carried out. The PEICP has managed through the downturn in the industry by keeping costs to a minimum while maintaining the same or a higher level of service, however; we have reached a point where we need to revisit our revenue stream. We can no longer expect to have a representative seat at the board of the Canadian Cattlemen’s Association or Canada Beef unless we pay our share, nor can we continue to run our organizations with declining revenues. Our provincial levy has not increased since 2001; it’s time to review it. I’m personally asking that you take a couple of hours from your busy schedules to attend one of our district meetings. We will be reviewing our current levy and introducing our proposed levy that will ensure that your organization is properly funded to do the work we need to do. We will also have representatives coming from all of the national organizations who work on our behalf. This is your opportunity to ask questions and get them answered first-hand. It is my dream to see the Island’s beef industry stand out as the leading industry in Prince Edward Island. Let’s make this happen together. Brian

Tuesday November 17, 2015 Farm Centre, Charlottetown

Wednesday November 18, 2015

12 Redwood Ave, Slemon Park, Summerside

Board of Directors, PEI Cattle Producers, for further

information, contact:

Brian Morrison ...................................... (902) 432-0758

morrisonfarms@eastlink.ca

Jeremy Stead ......................................... (902) 394-0696

steadj@live.com

Derek Annema........................................ (902) 628-5187

derekannema@hotmail.com

Sterling Jay............................................. (902) 629-0313

sterlingjay@gmail.com

Kenneth MacEachern............................ (902) 583-2474

kenneth.mac@pei.sympatico.ca

David McCloskey.................................... (902) 394-0695

mccloskey69@hotmail.com

John MacDonald, CB Rep…................. (902) 854-2625

johnjmacdonald@live.com

Ivan Johnson, CCA Rep........................ (902) 439-0466

ivanandcaroljohnson@pei.sympatico.ca

PEICP Office, ED, Rinnie Bradley …. (902) 368-2229

cattlemen@eastlink.ca

National Beef Strategy In 2014 the national beef industry organizations came together to develop a National Beef Strategy. Increasing global demand as well as a tight supply of cattle has provided an opportunity for Canadian beef producers. Markets that were once closed due to BSE, reopened and new trade agreements have been put in place. Record prices for beef and live cattle have been off-set with competition for arable land, while higher feed and production costs have slowed a normal re-growth cycle. To address these issues; national and provincial industry organizations worked together to identify priorities and ensure key initiatives were appropriately funded. Participating members included the Canadian Cattlemen’s Association, Canada Beef Inc, Beef Cattle Research Council, Canadian Beef Breeds Council, National Cattle Feeders’ Association, as well as all Provincial Beef Associations. It is crucial that all beef industry stakeholders work collaboratively to develop, implement and fund the National Beef Strategy. With Canada currently at the bottom of its cattle cycle, check-off revenues are the smallest since the early 1990s. Since the National Check-off was introduced in 2002, inflation and a reduced number of marketings resulted in less check-off collected, limiting resources. Therefore an increase in the National Check-Off from $1.00 to $2.50 will be required to ensure the objectives of the National Beef Strategy are met. (In PEI the NCO is $1.00 of every $4.00 levy collected.) The PEI Cattle Producers has been taking advantage of the option to claw-back most of the National Check-Off dollars it collects for the purpose of marketing, promotion or research projects carried out provincially. The projects must meet the requirements of the National Check-Off and cannot be used for administration. In 2014 the PEI Cattle Producers carried out over $18,225.00 in research and promotion projects, exceeding its claw-back. Some of these included bull and heifer research at the Nappan Bull Test Stations, a PEI COP Study and the PEI Burger Love campaign. PEI is one of several provinces that claw-back some of the current NCO , however; all provinces realise going forward, that if the National Beef Strategy is to meet its mandate, none of the $1.50 increase to the NCO can be clawed back.

PEI Cattle Producers Levy Switching focus to the Provincial levy, $3.00 from every $4.00 levy collected is used for the payment of allocations to the Canadians Cattlemen’s Association as well as administration and program delivery within the PEI Cattle Producers. Income revenue from provincial levies has been insufficient year over year in meeting the necessary funding requirements. If it weren’t for the leniency of the CCA in writing off bad debt incurred through unpaid allocations by the PEICP, we would have lost our status as a member of the CCA as well as our seat on the CCA’s Board of Directors. In addition the PEICP relies heavily on administration fees received for delivering some of the programs offered through the PEICP. These two factors combined are the only reason the PEICP has been able to continue to operate near break-even for the past three years. We are not alone. Nova Scotia and New Brunswick are dealing with these same concerns. This has prompted a joint letter to the Chairman of Canada Beef Inc., Jack Hextall, asking for patience as we reorganize our levy systems in order to meet our obligations to our national and provincial organizations. A quote from this letter states, “To that end, together we’re developing a five-year strategy that will see each of our organizations fully satisfy their financial responsibilities to CBI and CCA. We ask for your support and patience as we work together as a region so that everyone in our Canadian industry benefits and prospers.”

Q: What have we determined so far? A: We have been working very hard to determine the amount of money it will take to run the PEICP office, pay our allocations to the Canadian Cattlemen’s Association and fund the National Beef Strategy. While we don’t have all the details worked out, we have made some assumptions. 1) that the amount of the levy will need to increase, 2) that the collection of the levy will be changed to a collection per transaction rather than a collection at slaughter only so that all sectors of the beef industry will be asked to contribute their fair share. Q: Why go to a per transaction levy? A: There are several reasons for this; 1) this is the method of levy collection used in all other provinces across Canada, 2) it would better align our levy system with Nova Scotia and New Brunswick’s, 3) it would

share the responsibility of paying levies from the feedlot alone, to all sectors including cow/calf, backgrounders, bob-calves. 4) a per transaction system will better align with the NCO collections system and 5) a per transactions collection system should result in more dollars being collected from all sectors to meet our obligations to our national organizations.

Q: What will we hear at the Fall District Meetings? A: During the Fall District Meetings, we are very fortunate to have Dennis Laycraft from the Canadian Cattlemen’s Association, Michael Shittu and Ron Glacer from Canada Beef Inc, and Andrea Brocklebank from the Beef Cattle Research Council share insight into the benefits of the organizations they represent. We strongly encourage you to take this rare opportunity to come and meet with them as they present their vision for the future of the beef industry through the National Beef Strategy and provide an overview of the work involved. These organizations are working on your behalf so we encourage you to come hear what they have to say. At the end of the night we will provide an overview of the proposed new levy system. Two meetings are scheduled; Charlottetown, Nov 17 and Slemon Park, Nov 18. We hope to see you there. As we continue to work through the revision of our levy collection system, we invite producers to share their concerns or ideas with us so that at the end of the day we will have a solid levy collection system that will be fair, sustainable, auditable, and will contribute enough resources to meet all of our financial obligations.

Q: What are the next steps? A: Throughout the winter we will continue to work on the details of how the

proposed new levy system will work. We welcome producers to provide

input and feedback on the proposal by attending meetings or contacting the

office or any of the Directors. We must all work together to ensure a

sustainable future for your organizations.

Considering a ChangeConsidering a Change

How Will Beef Producers Be Able To Voice Their

Opinions

There will be several ways for producers to get information about proposed

changes and, make their views known.

Meetings will be held throughout the winter to provide general information,

respond to questions and hear from producers as to what their initial thoughts

are on the issue.

A proposed renewed levy collection plan will be prepared for discussion.

Resolutions will be accepted for discussion at the Annual General Meeting

As always, questions can be directed to any member of the board of directors of

the PEI Cattle Producers or to Rinnie Bradley at the PEICP office. Phone

Numbers and contact information are listed below.

The National Strategy, a 5-year dynamic plan, is about how the organizations can work together to best position the Canadian beef industry for greater profitability, growth and continued production of a high quality beef product of choice in the world. The Strategy builds upon existing programs, addressing the necessary capacity, infrastructure and program investments to grow beef demand and industry competitiveness and productivity. Achieving the goals outlined in the Strategy is estimated to require a projected National check-off of $2.50 per head. Information documents are posted on www.beefstrategy.com website.