Keith Robbins, Director of Communications and Consumer Marketing joined the table to provide an update on the London Swine Conference (LSC) and highlighted Ontario Pork’s direction in recent years that the LSC become an event independent of Ontario Pork resources.  He reported that in the last couple of years the event has generated enough revenue to provide for operating funds. 

As per the draft Terms of Reference for the LSC, there are two positions on the conference steering committee for Ontario Pork as a founding member.  Keith suggested that staff occupy one position with the other to be filled by an elected or appointed producer representative.  He recommended that a Board Director fill this position at the current time as they are expected to serve as the Chair-Elect through this year, and then serve as Chair the year following.  A motion was passed that Stewart Cressman be elected to the LSC Steering Committee. 

Don Ledrew and Brian Hughes from ACC Farmers’ Financial joined the meeting to provide an update on both the regular and emergency versions of the advance payment program.

Statistics presented illustrate a dramatic increase in program uptake over last year however overall usage is low with the program being accessed by about 10% of producers. 

The Advance Payment Program is an Agriculture and Agri-Food Canada program under the Agricultural Marketing Programs Act administered in Ontario by ACC Farmers’ Financial.  The program offers a loan up to $400K with the first $100K interest-free. 

Don provided an overview of program deadlines, calculations and eligibility requirements.

The Board asked questions about audit processes for the program and the guests confirmed that the program would not be available for animals being raised outside of the country.  Of note, there is an opportunity to apply based on expected sales/inventory.

The decline rate for program applications has been very low with ACC Farmers’ Financial working with producers to help them achieve eligibility.  There was some discussion about whether or not another loan program is a help or a hindrance to some producers – particularly those who are over-extended.

In the event of default by a number of producers due to current industry challenges, and low returns, the guests suggested that a plan may be needed to address this possibility.   

Guests spoke to the challenge of what/how to communicate to producers as uptake is lower than hoped due to producers’ hesitancy to take on more debt.  While it would be helpful for producers to know that this program may permit for some sort of modified repayment program – they should not come to expect this to be a grant.

It was agreed that it is important for producers to dialogue with their lenders in the event that they are challenged to repay.  The program needs to be viewed as extra money available to assist producers to manage and organize their businesses through the current market crisis.  The Board discussed the timing of approaching discussions with government on the potential to term-out the loan repayments – pending market prices over the next few months.  There was also the suggestion that any discussions with government on terming out repayments needs to be considered in the context of the other current asks of the federal government i.e. changes to CAIS.

Keith Robbins, Director of Communications and Consumer Marketing, Tom McLaren of Stakeholder Strategies and Brooke Leystra, Communications Manager joined the meeting and provided an overview of the June 11 agenda.

The Board discussed whether or not it would be beneficial to assign table seating.  There was also discussion around the role of the June 11 meeting in the overall strategic planning process, and what the expected outcomes are for the day. 

Staff reported that a facilitator’s guide and training are being offered with the purpose of maintaining the discussions at a high-level.  After the meeting a document will be drafted to illustrate what was heard at the Policy Day, and to outline next steps in the Strategic Planning/Business Planning process.  This will need to be done quickly in preparation for Pork Congress.

Board members shared their experiences to date at local meetings called to prepare for June 11.  The purpose of the June 11 Policy Day is to consult with councillors so that their input can be applied to the strategic direction as required before it is turned over to operations for further development.

It was re-confirmed that the meeting is a closed meeting – open only to duly elected councillors, alternates, Presidents and Secretaries.  Board members will be serving as moderators, and staff will be serving as facilitators.

Phil Anwender, Safety Net Committee Chair presented an update on the safety nets modeling project and provided an overview of the proposals sought and received.  He outlined the anticipated value of the model in projecting impact on CAIS margins in future years to better position Ontario Pork’s participation in developing safety net programs.  The Board passed a motion to accept the proposal as submitted by BDO Dunwoody as recommended by the Safety Net Committee.

The Board discussed the importance of ensuring the inclusion of new farmers in any programs going forward citing the issue with the OCHHP program.  The Board also discussed that the government needs to provide updated computer systems to its agencies to better structure and administer these programs.

Curtiss reported on inquiries received to date on supplying product to China and commented that most are interested in branded product, with another looking for 2,000 hogs a week on a trial basis.  In response, Ontario Pork has issued two preliminary proposals for consideration.  In every case, a staged approach is preferred that starts on a small trial basis.

The Board considered what value Ontario Pork can bring to a deal or negotiation with China that an individual processor cannot, and discussed the appropriate extent of Ontario Pork’s role as a facilitator. 

Concerns were expressed about costs incurred to date on exploring opportunities in China and there was general agreement that any hogs leaving the continent is good for domestic hog prices regardless of who moves them out.

Clare Schlegel reported that Ontario is critical to moving BRM issues at the federal level and circulated a document to be distributed at a pending Ministers/Deputy Ministers meeting.  Clare highlighted the challenge in gaining consensus across provinces and commodities with Ontario’s key ask being an adjustment to margins and caps, and production insurance.  Concern was expressed that Minister Dombrowsky represent strongly at these meetings. The other issue is the timing of the introduction of the AgriStability program.

Clare asked the Board if they would be supportive of CPC’s investing additional resources in lobbying to achieve the asks as outlined for the Minister’s meeting – the better of either AgriStability or AgriInvest, and production insurance which could amount to significant dollars for producers.  A recurring challenge is the decision around where to expend political clout most effectively.

Clare also showed a document being prepared for the National Pork Value Chain Roundtable meetings which highlights the question of equitable market access and competitiveness considering the roles of producers, processors, further processors and government.  Uncertainty as to where the industry currently is in the hog cycle makes it challenging to go forth with a confident ask/plan.

Clare encouraged directors to share with local producers the documents on CPC’s requests to the federal government for use in their own local lobby efforts.

Wilma Jeffray reported on the CPC Trade Readiness Committee who is currently evaluating legal counsel for a national effort.  Wilma asked for feedback on whether or not Ontario Pork would be supportive of “releasing” Hogan & Hartson LLP to allow them to work at the national level.  The Board considered whether Ontario Pork still requires independent trade counsel to the previous extent.  The Board was generally supportive of promoting Hogan & Hartson LLP to national as it would be consistent with previous positions and also indicates keen support to avoid the conflict and duplication of effort from the last time.  Ontario Pork would prefer one counsel nationally until such time that other is required.

The Board indicated support for the concept of a national trade readiness committee, and the release of Hogan & Hartson LLP to allow for their consideration as national counsel.