Board Highlights June 2008

June, 2008

Board Highlights Volume 10, Issue 6

The purpose of this Newsflash is to help keep you informed on the issues the Board is dealing with on your behalf.

This update is sent by fax or e-mail (preferably e-mail wherever possible). If you have received a duplicate fax or e-mail, wish to make changes, or would like to be added to or removed from our distribution list, please let us know.

Please direct any questions or comments to the Ontario Pork Communications department at 1-877-ONT-PORK (668-7675) or by e-mail to comm@ontariopork.on.ca

The following are highlights from the June 25-25th, 2008 Ontario Pork board meeting.

Environment Committee Recommendations

Bill Wymenga, Environment Committee Chair presented an overview of the Environment Committee meeting held on June 16^thand the motions contained therein.

Teresa Van Raay, Ontario Pork’s representative to the OFA reported on the OFA’s June 18^th meeting and the Board discussed OFA’s legal review process citing concerns about the public approach.

Bill spoke to the challenge of keeping on top of the activities of the 19 SWP committees around the province. In an effort to address this issue it was suggested by the OP Environment Committee to connect the local SWP AgReps and the OFA MSR’s with grassroots Ontario Pork representatives. The Board shared individual experiences to date and discussed OFEC’s role in facilitating communications.

Interim Management Team Report

Curtiss Littlejohn, Board Chair, along with Ken Ovington, Director of Strategic Management and Lloyd Bauernhuber, Director of Finance reported that the interim management team is working well. Staff confirmed that the length of this assignment is understood to be 5 to 6 months.

Full Booking Presentation

Ken Ovington, Director of Strategic Management introduced the Full Booking Project presentation providing an overview of the history of the project and the timelines. Pat Mammoliti, Director of Information Systems spoke to the technical elements.

Staff provided a demonstration of the online HAMS 2008 system, reviewing the details and functionality of the forecasting and booking screens.

The effectiveness of the program is largely dependent on the level of compliance from producers to commit loads or at least indicate intentions up to four months in advance. The Board will have a number of policy issues to consider around requirements to forecast.

An accounting of project costs from inception to anticipated implementation in Q3 2010 are not currently available.

In reviewing the producer receipts screen the Board discussed the appropriateness of the section related to charges as it pertains to the arrangement between the producer and the transporter.

The Board discussed the opportunity to provide value to producers and to industry stakeholders. Report options and timelines were discussed as well as implementation and compliance challenges.

The Board discussed next steps for the Full Booking Project questioning resources expended to date and resources required for completion. The Board wanted to discuss opportunities to confirm or recalibrate pending a cost-benefit analysis and the relevance to the current strategic direction.

Staff confirmed that the working group is well-aware of the implications of the strategic direction on the Full Booking Project and all agreed that it would be addressed as part of the strategic and business planning process.

Market Renewal Strategy Update

Bridgette Dyce, Business Intelligence Officer, joined the table to provide an MRS update. She reported that the processor engagements are due to be completed this week – noting that while Informa has reported that the meetings have been positive, that the details will remain confidential. Informa is due for a third review meeting the end of the summer pending the outcomes of the engagements.

Bridgette reported on a meeting to update Bob Seguin (Ministry of Economic Development and Trade). Bob continues to indicate support for the strategies, and suggested engaging the Minister now in preparation for the 2009 budget planning process.

Cull Swine Breeding Program Update

Teresa Van Raay, Ontario Pork’s representative to the Ontario Sow Cull Working Group, provided an update on the program reporting that in Ontario 1,800 animals have been withdrawn from the program, with 9,400 animals remaining to be culled. Teresa confirmed that there is still room in the program on a first-come, first-serve basis.

An issue is anticipated around processing being able to accommodate the number of animals within the timelines prescribed.

None of the Ontario product has yet found its way into the food bank system.

Pork Congress Review

Keith Robbins, Director of Communications and Consumer Marketing reported on Ontario Pork’s participation in the 2008 Pork Congress noting that the smaller exhibit space worked well, and that the new facilities are good but overall attendance was down. The ratio of producers to exhibitors continues to be unbalanced.

Gold Event attendance was down, but the program was good. The Hog Jog was successful with good participation and funds raised.

Strategic Direction - Next Steps

The Board discussed what, if any timelines need to be established around the implementation of agents as prescribed at the June 11^th meeting considering the OFPMC hearing in late July.

The Board discussed the need to maintain the momentum established on June 11^thand the need to get a Business Plan for the organization in place.

Federal Lobbyist Registration Requirements

Keith Robbins, Director of Communications and Consumer Marketing, and Tom McLaren of Stakeholder Strategies joined the table. Keith provided an overview of the purpose and implications of the Act due to come into effect on July 1st, 2008.

Any federal lobbying activity needs to be posted to the registry within 10 days. In some instances individuals will need to be registered as a lobbyist for both Ontario Pork and CPC.

It is expected that a similar act will eventually be introduced at the provincial level.

June 11th Special Meeting Review

Keith Robbins, Director of Communications and Consumer Marketing provided an overview of the attendee evaluations received highlighting that the format is proving to be popular.

A compilation of the individual table’s policy statements, and a process map outlining the 2008 Ontario Pork Fall Policy Conference and its relationship to the Business Plan were circulated. The OFPMC hearing process and the MRS business plan process also needs to be considered in mapping out the steps forward.

It was suggested that the Fall Policy Conference format be structured with 4 topics established by the Board, and then 4 topics as suggested by the county associations.

The Board debated next steps in the strategic planning process and agreed that elements of commonality in the policy statements, and outstanding questions/issues need to be identified and addressed. Staff suggested that the Board needs to draft a final consensus statement, backed up with the table work, for communication to producers.

Ontario Farm Products Marketing Hearing

It was agreed that all Board members would attend the hearing as available.

The Board reviewed Ontario Pork’s June 19th submission to the Commission, and the positions outlined therein.

OnTrace Presentation

Brian Sterling (Executive Director), Nick Albu (Technology Director), Barry Walker (Director of Product Management) and Sara Avoledo (Communications Specialist) joined the meeting to make a presentation on the Ontario Agri-Food Premises Registry (OAPR) explaining that the first priority for OnTrace and the OAPR is to provide OMAFRA with information for the purposes of emergency management.

The guests reported that OnTrace continues to bring more producer groups onside, and that the organization is striving to establish a self-sufficient business model – developing products that would provide the income necessary to support their core function. Establishing a strategy for tracking movement was suggested as an opportunity.

Canada Pork Council Update

Wilma Jeffray reported on meetings held this week in Washington DC to select legal counsel for the Canadian Pork Council’s trade readiness needs.

Clare Schlegel, CPC President provided an update on global free trade talks, referred to a draft final report on OUI (Own Use Import), and spoke about the improved or re-established access to the Russian market.

Clare circulated the Canada Pork Value Chain – Strategic Framework document and explained that the aim of the strategic framework is to improve the competitiveness of the Canadian hog industry considering the role of government, product differentiation, and innovation. The Board discussed the issue of decreased per capita consumption of pork, and the role of the provincial boards and governments in product development. There was a suggestion to invite David Schwartz, Chair of the Pork Value Chain Roundtable to a future board meeting to provide an overview of the strategic framework.

Clare referred to the recent Alberta funding announcement, and CPC’s lobbying for support of livestock agriculture. He reported on recent fed/prov meetings and the reactions and requirements from individual provinces regarding changes to the national safety net package. The Board reviewed the “call to action” document circulated with the Board binder. The board indicated general support for the CPC position as outlined.

Clare presented the potential 2009 CPC funding scenarios that could come into effect January 1st, 2009.

Due to the current market situation, cuts to provincial organization revenues are anticipated – therefore it is unlikely that a budget will be approved at the semi-annual meeting next week in Edmonton. Everyone recognizes the challenge of balancing the funds required with the work currently underway, and the work anticipated over the coming year considering WTO, etc.

The Board discussed the proposed remittance structure for the CPC levy. It was suggested that instead of basing contributions on previous years numbers (in light of the current decline in hog numbers) that the CPC consider a remittance based on actual numbers on a quarterly or monthly basis.

It was duly moved and seconded to support at the national level, working towards a national check-off.

Visit www.ontariopork.on.ca for more industry information.