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February, 2008 |
Board Highlights Volume 10, Issue 2 |
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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
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The following are highlights from the February 25th, 2008 Ontario Pork board meeting.
It was duly moved and seconded that Deloitte & Touche are appointed as the auditors of the Ontario Pork Producers’ Marketing Board for the fiscal year ending December 1, 2008, and they shall hold office until the time of the annual meeting of the producers for such fiscal year, unless earlier removed from office by the Board or a successor is appointed by the Board.
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| DELIVERY MANAGEMENT |
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Ken Ovington, Director Strategic Management and Tim Metzger, Project Deployment Manager presented an overview of the new HAMS Database. Staff is currently working with a test group of 10 to 15 producers who are providing information on a weekly basis for the full booking component. Over the next two months, the Board will be presented with the pilot data to help assist in the policy decision making process for the full booking project. By the end of March, a beta website of the forecasting/commitment module will be available for testing by the same pilot group.
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| INSURANCE PROJECT UPDATE |
| Gary Hutchings and John Drakeford with BMS Intermediaries, Deborah Whale representing OLPC, and Bruce Stephens with Agriculture and Agri-Food Canada provided an update on the pilot project being conducted by the Ontario Livestock and Poultry Council. The project has been exploring the feasibility and design for a commercial insurance project which will cover losses from animal disease outbreaks including business interruption coverage. The broiler, egg laying, hatching eggs and pork sectors were chosen for the focus of the pilot.
Currently, the project is at the stage of developing a methodology for fair and equitable animal valuation and loss adjustment; develop a preferred delivery and administrative solution including structure and reinsurance; and develop policy wordings.
The goal is to develop a single policy covering mortality with extensions for morbidity, consequential losses and business interruption. The delivery would be through a Canadian primary insurance company working with a local agency and via an annual policy. A product for the pork sector should be available by the second half of 2008.
This project has been funded with public funds so all information has and will be shared with both federal and provincial governments.
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POLITICAL EVENTS AND LOBBYING |
New rules around Federal lobbying mean that if Ontario Pork is sending official designees to a political event, they must be registered as lobbyists. Attendance at events will have to show a definite cost benefit and should be considered on a case by case basis.
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CONFERENCE CALL WITH RITZ |
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The Board listened in on a media conference call with Federal Minister Ritz dealing with a Bill to be presented in the House. Three main initiatives will be proposed:
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Removing the requirement for livestock producers to use a Business Risk Management program as security for a cash advance and instead allowing producers to use their livestock inventory as security.
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Amending Bill C44 to increase the cash advance available to producers from a maximum of $25,000 to $400,000 with the first $100,000 being interest free. The repayment period will start one year after the advance.
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A $50 million cull breeding swine program.
In addition, the government will review meat inspection user fees to assess their impact on competitiveness of the sector and also try to reduce costs to the industry related to SRM restrictions.
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In the announcement for the Ontario Cattle, Hog and Horticulture payment, the Ontario government set aside an extra $20 million for other initiatives. Of that amount, $2.5 million has been designated for an Ontario Research and Development (ORD) program. OACC is proposing to follow a similar formula as used in the past for the Canadian-Ontario research funds. Administration by AAC accounts for 4% and the remaining funds would be allocated to the horticulture, grains & oilseeds and red meat sectors (each would receive 32.66%) and the remaining 2% to tobacco and other commodities. The funds must be used by March 30, 2009.
It was duly moved and seconded that Ontario Pork accepts the proposed allocation of 32.66% of the research funding to the red meat sector.
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