2014 Annual Report

Transcription

2014 Annual Report

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Table of Contents
4
Message from the Chair
5
Message from the General Manager
6
Board of Directors
7
District Advisors and Staff
8
Public Relations
11
Sustainable Development and Research
12
Industry Performance and Services
14
Other Initiatives
15
Industry News
16
Financial Statements
Manitoba Pork Council
28 Terracon Place
Winnipeg, MB R2J 4G7
(204) 237-7447
info@manitobapork.com
manitobapork.com
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Message from the Chair
The Manitoba hog industry will probably
remember 2014 as one of our most profitable
years. Grain prices returned to more historic
levels and the impact of disease on the
volume of pigs marketed in the U.S. increased
returns. Producers were able to start paying
down debt built up over the past five years.
Of course, the good news was tempered
by the continuing shortage of finished pigs
needed to keep Manitoba’s major processing
plants operating at competitive levels with
their U.S. counterparts. Meanwhile, 2015
promises to be another good year for margins,
though at a lower level, bringing more stability
to the industry and encouraging producers to
begin replacing and upgrading facilities and
equipment.
nly five southeast Manitoba
O
farms were affected by the
Porcine Epidemic Diarrhea
virus (PEDv). These producers
made extraordinary efforts
to minimize the spread of the
virus and eliminate it from
their farms.
High traffic areas, such as abattoirs and assembly
yards, also took steps to curtail the disease.
Manitoba Pork and the provincial government
provided some financial assistance to affected
producers to help clean up infected farm sites.
The establishment in late 2014 of the Western
Canadian Swine Health Alliance is critical to
future disease management programs. To
minimize the potential for PEDv, Manitoba Pork
worked with the Canadian Food Inspection
Agency to develop the first sealing and washing/
disinfecting program in Canada for trailers
returning from the U.S. The ongoing support of
the provincial and federal governments in our
fight against this disease is appreciated.
4
The adoption of the new Code of Practice for
the Care and Handling of Pigs and the start
of swine movement tracking through PigTrace
Canada are two examples of work supported
by Manitoba Pork over the years that came to
fruition in 2014.
With an eye to future challenges, Manitoba
Pork continued to work with key stakeholders
to develop financial programs to mitigate risk
from disease, manage cash-flow shortages and
encourage new capital investment on farm.
These efforts take time and perseverance by
the Board and staff, but should pay dividends
in the future.
Our consumer marketing and industry
promotion programs also require a long view,
if we are to achieve changes in consumer
attitudes toward our industry and alleviate
concerns about the environmental impact of
the sector. Industry labour availability and skills
are two areas we continue to address.
In closing, I want to take the opportunity to bid
farewell and thank Manitoba hog producers.
It has been an honour to serve as Chair of
Manitoba Pork for the past 11 years, and to
represent the industry through good and bad
times. The ongoing support of the Board and
staff has been key to any success I have had.
Finally, I want to recognize the support of my
wife, Christine, who gave me the strength of
will to keep going.
Karl Kynoch
Chair
Manitoba Pork
Manitoba Pork 2014 Annual Report
Message from
the General Manager
The past year saw various events significantly
impact Manitoba Pork programs. The return of
sustained profitability throughout 2014 was
tempered by the threat of the deadly PEDv.
In addition to delivering regular programs and
services, helping producers prevent the disease
from spreading was a key role for staff.
Our efforts to get Country of Origin Labelling
regulations in the U.S. amended in the 2014
U.S. Farm Bill were not successful. However,
Canada and Mexico won for the third
time when the World Trade Organization
Compliance Panel ruled that the amendments
made by the U.S. in 2013 did not remove the
discriminatory effects. While the U.S. has
appealed this ruling, it is unlikely that Canada
and Mexico will lose. Our trade advocacy
program continued to build support among
our allies in the U.S. for Congress to take
action and amend this anti-trade legislation.
Advanced Payments Program staff focused on
completing the settlement of over 120 loans
remaining on deferred default status from
2008. While some loans had to be turned over
to the federal government for collection, most
producers were able to make arrangements
to repay the debt. Over 70 producers across
western Canada continue to use the program.
Our industry promotion and consumer
awareness programs continued to target urban
dwellers, increasing public knowledge of the
benefits of eating pork and the impact of
the industry on the environment. Consumer
surveys have shown that public perception is
changing, but we still have a way to go before
the industry is regarded in a fully positive light.
process. While the project will not resolve the
issue of improving the competitiveness of
our pork processing sector, it is a start in the
right direction.
Officials at the national level showed
considerable interest in the financial stability
programs developed by Manitoba Pork in 2013,
but the cutback trend of governments proved
to be a hurdle. We stressed that the programs
were critical to overcome fundamental
weaknesses of the current financial structure
of the industry that cannot be resolved by
normal market forces.
Manitoba Pork supported a number of key
research projects in 2014 dealing with swine
nutrition, manure management and housing.
We also continued to fund research on swine
husbandry at the University of Manitoba.
On behalf of staff, I want to thank the Board
of Directors for their enthusiastic support
and leadership for our endeavours in 2014.
Working together, we can continue to build a
sustainable hog industry in Manitoba for the
benefit of our producers and our province.
Andrew Dickson
General Manager
Manitoba Pork
In 2014, the provincial government eased
the moratorium on building hog barns and
approved a pilot project for 2015-2016 to build
a number of barns in western Manitoba, using
alternative technologies to anaerobic digesters.
Manitoba Pork will develop the pilot proposal
and assist producers with the approval
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Board of Directors
Left to right:
James Hofer
George Matheson
David Waldner
Claude Vielfaure
Rick Bergmann
Rick Préjet
Scott Peters
Glen Gratton
Karl Kynoch
Missing:
Wendy Friesen
Karl Kynoch CHAIR
Rick Préjet
Director-at-Large
Baldur
Member, Canadian Pork Council (CPC) Business Risk Management
Committee
Ex-Officio Member, Industry Performance and Services Committee
Ex-Officio Member, Sustainable Development and Research
Committee
Ex-Officio Member, Public Relations Committee
Director (West District)
Notre Dame de Lourdes
Member, Sustainable Development and Research Committee
Rick Bergmann VICE-CHAIR
James Hofer
Director (East District)
Steinbach
Chair, Sustainable Development and Research Committee
1st Vice-Chair, Canadian Pork Council (CPC)
Member, CPC Executive Coordination Committee
Director, Canadian Swine Health Board
Director (Hutter Schwein District)
Starlite Colony, Starbuck
Director, Manitoba Livestock Manure Management Initiative
Director, Manitoba Hog Grading Inc.
George Matheson EXECUTIVE MEMBER
Director (Maple Leaf Agri-Farms)
Landmark
Member, Public Relations Committee
Director, Canada Pork International
Director (West District)
Stonewall
Chair, Industry Performance and Services Committee
Member, CPC CQA Food Safety Technical Working Group
Member, CPC Identification and Traceability System Working
Committee
Commodity Representative, Keystone Agricultural Producers
Scott Peters EXECUTIVE MEMBER
Director (East District)
Randolph
Chair, Public Relations Committee
David Waldner
Director (North Star Producers District)
Norquay Colony, Oakville
Member, Industry Performance and Services Committee
Glen Gratton
Claude Vielfaure
Director (HyLife)
La Broquerie
Member, Public Relations Committee
Director, Canadian Pork Council (CPC)
Member, CPC Animal Care Task Group
Member, National Pork Value Chain Roundtable
Wendy Friesen (ALL POSITIONS TO SEPTEMBER 30)
Director-at-Large
Lowe Farm
Chair, Public Relations Committee
Member, Industry Performance and Services Committee
6
Back row, standing
(left to right):
Leonard Waldner
Len Penner
Chris Lawson
Neil Booth
Hans Soer
Don Carganillo
Lorne Voth
Jeroen Van Boekel
Carol Martens
Calvin Penner
Russ Penner
Peter Hofer
District Advisors
West District
East District
Stan Dueck (Arborg)
Calvin Penner (Argyle)
Russ Penner (Winkler)
Hans Soer (Solsgirth) –
Don Carganillo (Niverville)
Fred Fast (Niverville)
Len Penner (Steinbach) –
November to December
Henrik Thomsen (Roblin)
Jeroen Van Boekel (Stephenfield)
Wim Verbruggen (Rivers) –
January to October
November to December
Lyle Peters (Randolph)
Sandra Redekop (Steinbach) –
January to October
Marg Rempel (Ste. Anne)
Lorne Voth (Steinbach)
North Star Producers
District
Maple Leaf
Agri-Farms
Edward Stahl (Grass River Colony)
Gerald Waldner (Blooming
Prairie Colony)
Neil Booth
Chris Lawson
Hutter Schwein District
Carol Martens
Sheldon Stott
Peter Hofer (Skyview Colony)
Leonard Waldner (Poplar Point
Colony)
HyLife
Cyndy Goos
General Manager
Accountant
Julie Baird
Laura Kunzelman
Executive Assistant
Communications Specialist
Miles Beaudin
Laurel Lyons
Manager, Quality Assurance
and Labour Programs
Special Events Coordinator
Mark Fynn
Front Desk Coordinator
Diane Miller
Susan Riese
Manager, Public Relations and
Consumer Marketing Programs
Mike Teillet
Manager, Sustainable
Development Programs
Arne Thorlacius
Industry Services Coordinator
Missing:
Lyle Peters
Edward Stahl
Sheldon Stott
Gerald Waldner
Back row, standing
(left to right):
Laura Kunzelman
Laurel Lyons
Randy Ozunko
Jason Care
Andrew Dickson
Diane Miller
Arne Thorlacius
Cyndy Goos
Miles Beaudin
Mark Fynn
Manitoba Pork Staff
Andrew Dickson
Front row, seated
(left to right):
Fred Fast
Marg Rempel
Stan Dueck
Jeff Clark
Manager, PigTrace Canada
Front row, seated
(left to right):
Mike Teillet
Jeff Clark
Julie Baird
Susan Riese
Jason Care
Auditor, Manitoba Hog
Grading Inc.
Randy Ozunko
Program Manager,
Manitoba Pork Credit
Corporation
Animal Care Specialist
7
Public Relations
Public outreach
In response to the results of
a public survey conducted
near the end of 2013,
Manitoba Pork produced
an additional television
commercial and YouTube
video in August featuring
Tricia Schmalenberg,
Environmental Engineer with
Maple Leaf Agri-Farms.
In September, Manitoba
Pork made a multi-year
sponsorship commitment
to Team Jennifer Jones in
exchange for advertising
benefits that help promote
pork as a training partner for
peak performance.
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Manitoba Pork recognizes the importance of
reaching out and interacting with the public about
pork producers’ commitment to the environment,
animal care and food safety. Our public relations
campaign, We are Part of the Solution, ran in
the spring and fall of 2014 to further dispel
misconceptions about manure management
practices and to explain how farmers protect
Manitoba’s lakes, waterways and groundwater. To
encourage and strengthen consumer engagement,
the campaign was enhanced prior to its fall
run through the creation of a new television
commercial and YouTube video, as well as a digital
micro-campaign that recognized “pig poop” as
a valuable organic fertilizer for crops. We also
participated in the grand opening of the Manitoba
Museum’s Lake Winnipeg: Shared Solutions exhibit,
the development of which was supported by
Manitoba Pork funding and expertise in 2013.
In January 2014, Manitoba Pork partnered with
the Red River Exhibition Association to create a
new exhibit for the agricultural society’s annual
summer fair in June. The new Pig Tales exhibit was
double the size of our previous display and was
well received. We also participated in the Provincial
Exhibition’s Royal Manitoba Winter Fair in March.
Our partnership with Agriculture in the Classroom –
Manitoba continued to flourish in 2014 through
several highly anticipated events: Agriculture
Literacy Week, Discover
Agriculture in the City and
the Amazing Agriculture Adventure in Brandon
and Winnipeg. Manitoba Pork again supported
the Made in Manitoba Breakfast program with
sponsorship dollars, sausages and producer
volunteers, reaching over 9,000 students.
We helped promote the Bruce D. Campbell Farm
and Food Discovery Centre through advertising in
our quarterly newsletter, Inside Manitoba Pork, and
social media. We also participated in the Centre’s
spring workshop series aimed at high school
students and provided pork on a bun for visitors on
Open Farm Day.
Visits to the Manitoba Pork website were actively
promoted through print, radio ads, social media
and digital advertising. Ads placed in the online
version of the Winnipeg Free Press were
particularly successful in increasing site visits
during various campaigns, as was the creation
of web addresses that sent users to specific
consumer-focused pages.
Pork promotion
Throughout 2014, Manitoba Pork was present
at numerous fairs, trade shows and organized
sporting events, which provided many
opportunities to distribute thousands of recipes
and promote pork as a tasty and versatile protein,
as well as a powerhouse of nutrition. Manitoba’s
trend-watching foodies were reached through
several key lifestyle publications, while the message
that pork packs a nutritional punch was delivered
through sports organizations like the Canadian
Sport Centre Manitoba, CurlManitoba, the
Manitoba Junior Hockey League, Hockey
Manitoba and the Winnipeg Wesmen.
A highlight of the year was the signing
of a sponsorship agreement with Team
Jennifer Jones, our 2014 homegrown
Olympic curling gold medalists.
To celebrate the largest bacon plant in Canada
calling Winnipeg home, we declared August 2014
Bacon Month in Manitoba, and launched one of
our most popular campaigns of all time – Bacon
Makes it Better. In conjunction with the campaign,
our Bacon for a Year contest drew over 4,000
entries, with 20 winners receiving bacon donated
by Maple Leaf Foods. Nearly 10,000 copies of
our bacon-themed recipe booklet were put in
consumers’ hands in September alone.
Manitoba Pork continued its relationship with
Siloam Mission and Winnipeg Harvest in 2014
through sponsorship support and significant
donations of pork products. Throughout the year,
35 deserving organizations received our support,
including the Mennonite Central Committee which
received a $5,000 cash donation for its annual
meat canning drive in Winkler.
I n November, the Bacon Makes
it Better campaign was honoured
at the Best of CAMA (Canadian
Agri-Marketing Association)
Awards with the top prize in
the category of Merchandising
Aids, Promotional or Specialty
Advertising.
To help educate young consumers on the benefits
of choosing pork as a first-choice protein, Manitoba
Pork took to classrooms in March and May, leading
three interactive cooking lessons aimed at high
school students enrolled in Home Economics or
Foods and Nutrition. While the students enjoyed the
challenges of cooking a pork meal and savouring the
results, Manitoba Pork gained valuable insight for the
development of future resources and lessons.
Reaching tomorrow’s consumers
Manitoba Pork’s second annual, pork-themed
version of The Twelve Days of Christmas was a
popular addition to the 2014 holiday season.
The contest was promoted through social media,
festive digital ads and attention-catching jingles
on two of Winnipeg’s top radio stations. Twelve
lucky winners were chosen from 700 entries to
take home fresh pork packs valued at $100 each.
Manitoba Pork remained committed to helping
consumers connect with Manitoba farms and
foods through its ongoing participation in the
Great Tastes of Manitoba television show, which
celebrated its 25th anniversary in 2014. We also
made 12 live, in-studio appearances on Breakfast
Television (BT), which were promoted several days
prior to the show under the tag, BT’s Manitoba
Pork Moments.
Commitment to the community
Manitoba Pork made good use of its mobile
barbecue carts from May through September,
supporting several high-profile fundraising events,
including the popular Motorcycle Ride for Dad and
the MS Bike Tour. In 2014, our summer grill teams
served 14,000 pork on a bun sandwiches at 93
events, many of which helped local charities such
as the United Way, the Winnipeg Goldeyes Field
of Dreams Foundation and the Children’s Hospital
Foundation.
East Selkirk Middle School’s Grade 9 Home Economics class enjoyed cooking
a pork meal with guidance from Manitoba Pork staff.
Shaping the culinary landscape
In February 2014, Manitoba Pork partnered with
Ciao! magazine to bring local foodies Dine About
Winnipeg, an annual event that presents diners
with the opportunity to experience some of the
best chef creations Winnipeg has to offer. Out of
26 participating restaurants, 19 incorporated pork
into their menu, from braised pork belly and bacon
wrapped delights to innovative pork loin mains.
In March and April, Manitoba Pork joined local
chefs for Share Our Strength (SOS) Winnipeg’s
annual culinary experiences – Taste of the
Nation and Chef’s Dinner – to help support the
organization’s hunger relief efforts. We also
participated in a special, one-time SOS Winnipeg
project, the development of a 104-page cookbook
featuring recipes by some of Winnipeg’s top chefs.
9
Supporting the chefs of tomorrow remained a
priority for Manitoba Pork in 2014 through the
provision of culinary scholarships at Red River
College (RRC) and Assiniboine Community College
in Brandon. The year began with a private tour
of the Paterson GlobalFoods Institute (PGI),
followed by a special Chef’s Table dinner held
in the Manitoba Pork Apprenticeship Lab which
was attended by several District Advisors. In late
September, Manitoba Pork helped showcase its
partnership with RRC and PGI by participating
in a CTV Morning Live interview that highlighted
how our support gives instructors the opportunity
to inform students of the benefits of using local
Manitoba pork products. At our annual November
RRC cook-off, Manitoba Pork awarded prizes of
$750, $500 and $250 to the top three culinary arts
students based on presentation, creativity, taste
and pork doneness.
public relations and consumer marketing efforts.
The distribution list was also used for special
PEDv alerts, plus town hall and meeting notices.
Website visits to manitobapork.com increased
substantially when producers were drawn to
the site for specific reasons, such as PEDv and
biosecurity protocol updates. Certain pages under
the Manitoba Pork industry portal were regularly
updated to ensure producers had access to the
most up-to-date information on the programs
and services that benefit them on farm. As part
of Manitoba Pork’s human resource initiative,
the “Choose a Career in Pork” tab was added to
draw attention to the industry’s labour shortage
and encourage visitors to explore employment
opportunities in the pork industry.
Producer meetings
Manitoba Pork’s Annual General Meeting in April
was well attended. In addition to committee
updates, highlights included a presentation
on trade by the Consul General of Canada in
Minneapolis and a PEDv panel discussion.
Manitoba Pork hosted District Advisors meetings
in February and June that included presentations
by industry experts on a financial model for the
cost of production, new land-use planning tools,
and staff program updates on PEDv, the new
Code of Practice for the Care and Handling of Pigs,
environmental regulations and traceability.
As part of Global Cuisine Week, students learned to prepare German fare using
a variety of Manitoba pork products. CTV Morning Live was on hand to cover the
event and shine the spotlight on Manitoba Pork’s partnership with PGI.
Industry communications
Annual fall producer meetings were held in October
in Niverville and Portage la Prairie. Guest speakers
included Manitoba’s Chief Veterinary Officer,
Dr. Megan Bergman, and Dr. Tim Snider, University of
Minnesota. A number of staff made presentations on
Manitoba Pork programs and activities.
Manitoba Pork used a variety of communication
tools to effectively deliver information and
messaging to producers and industry stakeholders
throughout the year.
Manitoba Pork’s quarterly newsletter, Inside
Manitoba Pork, was distributed to approximately
1,000 subscribers.
Our bi-weekly e-newsletter, Chop Talk ,
informed and educated producers and industry
stakeholders on important industry issues,
on-farm program updates, educational and
volunteer opportunities, and Manitoba Pork’s
10
Manitoba Pork’s producer meetings in Niverville and Portage
la Prairie were well attended and provided producers with the
opportunity to keep up to date on industry issues.
Sustainable Development
and Research
Investing in research
In 2014, Manitoba Pork contributed over
$370,000 towards research and institutional
development, continuing our ongoing
commitment to help producers remain world
leaders in hog production. Since 1999, Manitoba
Pork has contributed nearly $9 million to such
important causes. Add to this the contributions
by various levels of government, and it is clear
that a significant amount of resources has been
invested in these activities over the last 15 years.
The majority of Manitoba Pork’s funding goes
to the University of Manitoba’s Faculty of
Agricultural and Food Sciences, with Swine
Innovation Porc and the Prairie Swine Centre
also receiving significant amounts.
Water matters
Manitoba Pork continued to support numerous
water-related initiatives in 2014. We are active
members of both the Red River Basin Commission
and the newly established Assiniboine River
Basin Initiative, as well as ongoing supporters
of the Manitoba Museum’s award winning
Lake Winnipeg: Shared Solutions exhibit, the
Lake Friendly Stewards Alliance and the Manitoba
Conservation Districts Association, among others.
Manitoba Pork not only provides funding to many
of these groups, but also offers expert input on
policy, projects and programs.
International livestock
standards
Almost 10 years ago, the United Nations Food and
Agricultural Organization (FAO) published a report
called Livestock’s Long Shadow, a negative account
of the effects of livestock on the environment. A
number of livestock organizations around the world
objected to this report, and asked the FAO for a
formal method of responding to it. In response, the
FAO established the Global Agenda for Sustainable
Livestock. Various livestock and non-governmental
organizations, government representatives and
academics were invited to help develop a more
balanced response to the environmental impact
of livestock. At the request of the Canadian Pork
Council, Manitoba Pork represented the Canadian
hog industry, with funding provided through
Canada Pork International. Our collective goal is
to ensure that any international environmental
standards adopted are appropriate and relevant for
the Canadian industry.
As part of our partnership
with the Manitoba Museum,
Manitoba Pork hosted a
class of Grade 10 students
at the new Lake Winnipeg:
Shared Solutions exhibit just
prior to its official opening
in March 2014.
Representatives from 30
different countries, including
Manitoba Pork’s Mike Teillet,
visited an experimental farm
near Cali, Columbia in October
at the 5th annual meeting of
the FAO’s Global Agenda for
Sustainable Livestock.
11
Industry Performance and Services
PEDv – The year of disease
prevention
Part of Manitoba Pork’s
PEDv education campaign
included the development
of training videos for
transporters to follow proper
procedures for putting on and
disposing of coveralls and
boot covers when picking up
or delivering pigs.
At Manitoba Pork, 2014 was almost completely
consumed by preparations and response to PEDv.
When the virus surfaced in Ontario in January, we
went into full disease prevention mode, working
closely with veterinarians, government officials,
producers, transporters and other industry
stakeholders to develop a response plan to deal
with cases that might arise. We distributed
thousands of brochures and mail-outs about the
disease and how to avoid it.
When Manitoba got its first case of PEDv in
mid-February, Manitoba Pork worked with the
regional Canadian Food Inspection Agency to allow
transporters returning from U.S. hog farms to seal
their trailers at the border and proceed directly to
trusted wash facilities in Manitoba. We developed
a program that allowed veterinarians to deliver
enhanced biosecurity training directly to their
producer clients. We hosted regular phone-in town
hall updates on the situation. Working with our
government counterparts, we launched the PEDv
surveillance program at high-traffic swine facilities,
to be able to quickly identify and respond to the
presence of the disease on farm.
Throughout the year, we engaged in a number
of other activities to better protect the hog
industry. We arranged veterinary consultations
with high-traffic facilities, offered biosecurity
signage to all provincial abattoirs and helped
develop biocontainment plans for all high-traffic
sites with frequent U.S. contact. We worked
toward developing an assessment program for
truck wash facilities to help them improve their
washing practices for PEDv elimination, and to
also provide assurance to their producer clients.
With manure spreading season came the concern
12
that this practice might also spread the disease,
so we worked with the Manitoba Livestock Manure
Management Initiative, the Prairie Agricultural
Machinery Institute and the University of Manitoba
to investigate the survivability of the virus in
manure lagoons.
Manitoba Pork’s efforts to support the control
and elimination of this disease are ongoing. Our
continuing education campaign, through radio
spots, digital ads on Goldenwest radio’s news
platforms, emails and mail-outs, encourages
producers to never let their guard down. We
regularly deliver important updates through our
e-newsletter, website and producer meetings.
Credit for tackling this challenge is justly deserved
by everyone involved in the Manitoba hog industry.
Affected producers have done a magnificent job of
biocontaining the virus to their sites and marketing
their pigs in a way that avoids further spread of
this disease.
Pig Code of Practice (the Code)
The March 2014 release of the updated Code of
Practice for the Care and Handling of Pigs is a
prime example of the Manitoba hog industry’s
commitment to maintaining public trust and
continuous improvement in many areas, including
animal care and husbandry. Manitoba Pork and
provincial hog producers were active participants
in the three-year Code review process. The updated
Code outlines enhancements in a number of areas
related to raising pigs, most notably sow housing
and pain control. It offers a sustainable strategy
and guidance for the adoption of group housing
that will ensure best animal care outcomes. The
Code also requires pain control during piglet
processing. This change will go into effect July
1, 2016, allowing producers time to consult with
veterinarians on the best options.
This research revealed that airborne concentrations
of H2S do not prompt concerns with worker
overexposure. Results also suggest that when
using a direct reading (person-monitoring device),
it should be used as a way to help minimize
worker exposure to H2S during periods of
potential elevated airborne concentrations (such
as pit pulling), but should not be used to measure
airborne concentrations for compliance purposes.
Human resources
In an effort to make the CQA program more user-friendly
and efficient in the future, producers will be able to manage
the CQA and ACA programs electronically.
Canadian Ouality Assurance (COA)
In 2014, Manitoba Pork processed just under
600 CQA Validation Reports, many of which now
include registrations for the Ractopamine-Free
Pork Certification Program.
We contributed to upgrading the management
of the CQA and Animal Care Assessment (ACA)
programs, providing input for the complete overhaul
of the CQA program, so that it is modernized
and meets future demands of producers. We also
participated in a group established to discuss
antimicrobial resistance and antimicrobial use,
including producers, drug companies, provincial
associations, Health Canada, the Veterinary Drug
Directorate and industry veterinarians.
In response to the ongoing shortage of animal
care providers and the challenges of soliciting
applications for advertised positions, Manitoba
Pork initiated an extensive human resources (HR)
branding strategy and action plan in 2014. The
goal of this project is to create awareness that
the Manitoba hog industry is a great place to
work and to ultimately increase the number of
applications for on-farm positions. Data was used
from our extensive 2013 HR survey to develop key
messages for promotional pamphlets, radio spots,
newspaper ads and the career page on our website.
The creation of an HR video targeting animal care
providers highlighted the benefits of a career in
the industry. We attended career fairs in Brandon,
Dauphin and at the University of Manitoba, using
the display and video to promote the industry to
high school and university students, and to adults
interested in a career in the hog industry. Manitoba
Pork also participated with the Manitoba Employers
Council to keep abreast of leading HR issues and
was a representative on the Workers Compensation
Board Stakeholder Consultation.
The Manitoba Pork Careers & Jobs webpage serves as
the central hub for both
employers and job seekers in
Manitoba’s pork industry.
Manitoba Pork continues to invest in ways to
improve and reduce paperwork within the CQA
program. Several producers in Quebec have been
using an iPad version of CQA and have endorsed
this method. After a visit to a Quebec farm using
the technology, we reviewed the system with
Manitoba Pork’s Industry Performance and Services
Committee, and several producers have offered
to test the program. Further development of the
electronic version will continue only after the CQA
program has been updated in 2016.
Workplace health and safety
In 2014, Manitoba Pork contracted with
Safety Services Manitoba to evaluate the
hog industry’s ability to comply with new
provincial regulations lowering occupational
hydrogen sulfide (H2S) thresholds.
13
Other Initiatives
Trade advocacy
Manitoba Pork continued
to be a leader among farm
organizations in aggressively
promoting trade with the
U.S. through our participation
in the Minnesota and Iowa
Pork Congresses.
In January 2014, Manitoba Pork participated in
two of the largest hog industry events in the U.S.,
the Minnesota and Iowa Pork Congresses, where
almost half of the U.S. industry is centred. Keeping
borders open and free from tariffs and discriminatory
regulations is a continuing challenge, and these
kind of events help us maintain good trading
relationships with our American counterparts.
Business development
Manitoba Pork’s Directors and staff spent a
significant part of 2014 seeking support from the
provincial and federal governments for the financial
programs we had developed in 2013. Our focus was
on how to use existing support programs in novel
ways to support our initiatives. While producers were
making excellent returns, we are looking to the future
to ensure that there will be support for producers
when the inevitable downturn occurs.
Efforts to establish a new hog mortality insurance
program continued to be frustrating, but the outbreak
of PEDv brought new interest from federal and
provincial officials. A final product was developed and
shared with a small number of producers. While the
coverage and premium costs were reasonable, the high
deductible (twice the producer’s normal level of losses)
would limit claims to one-in-20-year events. This issue
has to be addressed before the product can be offered
by the Manitoba Agricultural Services Corporation.
Manitoba Pork had contracted with a consulting
company to assess risk in the Canadian hog sector
and to develop financial tools to mitigate key risk
factors. However, this project was temporarily
derailed in 2014 after the federal government
changed some of the rules on potential funding
under Growing Forward 2. A modified project was
resubmitted and awaits funding.
14
We continued to move forward with a project to
ensure that producers have access to affordable
insurance for their barns. A financial model was
completed in 2014 and work is underway to
secure participants.
Manitoba Pork Credit Corporation
(MPCC)
MPCC provides producers with a critical source of
working capital – up to $400,000 – at a very low rate
of interest through the Advance Payments Program
(APP). The first $100,000 is an interest-free advance,
with the interest paid by the federal government.
Under the 2014-2015 APP, 71 producers borrowed
$13.7 million. MPCC works closely with producers
under the 2008 Emergency Loan Program to ensure
that these loans are repaid. We are also working with
Agriculture and Agri-Food Canada to obtain a new
line of credit for new loans under the APP, which will
be made available to producers until March 31, 2016.
Manitoba Hog Grading Inc. (MHGI)
MHGI represents the interests of hog producers
and processors in Manitoba by providing an
effective and cost-efficient third-party carcass
grading service. In 2014, a good year for grading,
audit scores were up due to graders fine-tuning
their skills. Grader audits increased slightly, for
a total of 575 audits between the two federally
inspected processors in Manitoba. Just over 86,250
hogs were selected for the grader audits. Cooler
audits equaled 184 audits, with just under 55,200
hogs audited for the year. The average scores for
both graders and cooler audits were above average.
The probes remained within their acceptable error
range for 2014, and just over 1,745 calibration
checks were performed on the PG-200/205 probes.
Tattoo numbers were recorded during the audits
and are confidentially tracked for producers
upon request.
Industry News
Country of Origin Labelling (COOL)
Canada Pork International (CPI)
In 2013, Canada and Mexico asked the
World Trade Organization (WTO) to convene
a Compliance Panel on U.S. administrative
changes to the COOL regulations in an attempt
to come into compliance with U.S. treaty
obligations. The Panel had its public meeting
with the parties in February 2014 in Geneva,
and issued its report in July, clearly stating
that the changes did not bring the U.S. into
compliance. In October, the U.S. appealed the
Panel’s ruling. The appeal will be heard by the
WTO in February 2015. In the meantime, in
late 2014 the Government of Canada released
a list of potential U.S. imports that would
be targeted if the U.S. fails to meet its trade
agreement obligations.
Glen Gratton represented Manitoba Pork as a Director
on CPI, the export promotion agency of the Canadian
hog industry. We continued to support CPI in its
initiatives and programs to improve the competitiveness
and prosperity of the Canadian hog industry through
exports around the world. Total exports were down
slightly overall in 2014, totaling over 1.1 million
tonnes and valued at over $3.7 billion. Products were
exported to over 100 countries, with the U.S. and Japan
continuing to be the top two export markets. Only the
European Union and the U.S. are exporting more pork
products and by-products than Canada.
Canadian Pork Council (CPC)
Manitoba Pork was represented on the CPC
Board of Directors in 2014 by Rick Bergmann
and Claude Vielfaure. We continued to
financially support the CPC in its mandate
to lead and strengthen the country’s hog
industry. Considerable effort was focused on
trade advocacy and lobbying, particularly with
respect to COOL, and ensuring favourable
terms in trade agreements including
involvement in negotiations on the TransPacific Partnership. The CPC continues to be
proactive in its development and delivery
of programs that set standards ensuring a
product is adapted to international markets,
including CQA, biosecurity on farm, animal
care and traceability. Work continued on
the development of a national swine health
initiative focusing on PEDv, including disease
surveillance options, update of the biosecurity
program and, where possible, coordination with
provincial initiatives.
The highly anticipated
national PigTrace program
proved itself useful during
Canada’s PEDv outbreak, as
its goal is to improve response
and recovery time in the
event of a disease occurrence
or a food safety incident.
PigTrace Canada
The CPC PigTrace Canada program became
mandatory on July 1, 2014. Program participation
has been strong in all parts of Canada, as
demonstrated by the following statistics for the
period from July 1, 2014 to January 19, 2015:
• More than 255,000 movements reported
(approximately 1,250 per day)
• 4,599 premises reported movements
(7,461 registered in PigTrace)
• More than 1,005,000 ear tags sold
Movement information can be reported using mobile
browser, fax, phone, online forms, file upload and
automated file transfer from herd management
software. Producers can access their PigTrace account to
view their movement records and tag order history, and
can be given access to online tag ordering upon request.
The U.S. will only accept entry to Canadian pigs that
are identified according to PigTrace requirements. Also,
U.S. based sow/boar processing plants have begun
discounting Canadian marketers for culled sows/boars
received without PigTrace ear tags. These are signs that
the market wants traceability.
15
Independent Auditors’ Report
Independent
Auditors’
Report
Independent
Auditors’
Report
To theToMembers
of Manitoba
PorkPork
Council:
the Members
of Manitoba
Council:
We have
audited
the accompanying
financial
statements
of Manitoba
Pork
Council,
which
comprise
thethe
statement
of of
financial
position
We have
audited
the accompanying
financial
statements
of Manitoba
Pork
Council,
which
comprise
statement
financial
positionasas
at December
31, 2014,
the statements
of operations,
changes
in net
assets
andand
cash
flows
for for
thethe
year
then
ended,
and
a summary
at December
31, 2014,
the statements
of operations,
changes
in net
assets
cash
flows
year
then
ended,
and
a summaryofof
significant
accounting
policies
and other
explanatory
information.
significant
accounting
policies
and other
explanatory
information.
Management’s
Responsibility
for the
Statements
Management’s
Responsibility
forFinancial
the Financial
Statements
Management
is responsible
for the
and and
fair presentation
of these
financial
statements
in accordance
with
Canadian
Management
is responsible
forpreparation
the preparation
fair presentation
of these
financial
statements
in accordance
with
Canadian
accounting
standards
for not-for-profit
organizations,
and and
for such
internal
control
as management
determines
is is
necessary
toto
enable
accounting
standards
for not-for-profit
organizations,
for such
internal
control
as management
determines
necessary
enablethe
the
preparation
of financial
statements
that are
fromfrom
material
misstatement,
whether
duedue
to fraud
or or
error.
preparation
of financial
statements
that free
are free
material
misstatement,
whether
to fraud
error.
Auditors'
Responsibility
Auditors'
Responsibility
Our responsibility
is to express
an opinion
on these
financial
statements
based
on our
audit.
WeWe
conducted
ourour
audit
in in
accordance
Our responsibility
is to express
an opinion
on these
financial
statements
based
on our
audit.
conducted
audit
accordancewith
with
Canadian
generally
accepted
auditing
standards.
Those
standards
require
thatthat
we we
comply
with
ethical
requirements
and
plan
and
Canadian
generally
accepted
auditing
standards.
Those
standards
require
comply
with
ethical
requirements
and
plan
and
perform
the audit
to obtain
reasonable
assurance
about
whether
the the
financial
statements
areare
free
from
material
misstatement.
perform
the audit
to obtain
reasonable
assurance
about
whether
financial
statements
free
from
material
misstatement.
An audit
involves
performing
procedures
to obtain
auditaudit
evidence
about
the the
amounts
andand
disclosures
in the
financial
statements.
An audit
involves
performing
procedures
to obtain
evidence
about
amounts
disclosures
in the
financial
statements.The
The
procedures
selected
depend
on the
judgment,
including
the the
assessment
of the
risks
of material
misstatement
of of
the
financial
procedures
selected
depend
onauditors’
the auditors’
judgment,
including
assessment
of the
risks
of material
misstatement
the
financial
statements,
whether
due to
fraud
or error.
In making
those
risk risk
assessments,
the the
auditor
considers
internal
controls
relevant
totothe
statements,
whether
due
to fraud
or error.
In making
those
assessments,
auditor
considers
internal
controls
relevant
the
entity’s
preparation
and fair
of the
statements
in order
to design
audit
procedures
that
areare
appropriate
in in
the
entity’s
preparation
andpresentation
fair presentation
of financial
the financial
statements
in order
to design
audit
procedures
that
appropriate
the
circumstances,
but not
of expressing
an opinion
on the
effectiveness
of the
entity’s
internal
controls.
AnAn
audit
also
circumstances,
butfor
notthe
forpurpose
the purpose
of expressing
an opinion
on the
effectiveness
of the
entity’s
internal
controls.
audit
also
includes
evaluating
the appropriateness
of accounting
policies
used
andand
the the
reasonableness
of accounting
estimates
made
byby
includes
evaluating
the appropriateness
of accounting
policies
used
reasonableness
of accounting
estimates
made
management,
as well
evaluating
the overall
presentation
of the
financial
statements.
management,
as as
well
as evaluating
the overall
presentation
of the
financial
statements.
We believe
that the
evidence
we have
obtained
in our
audit
is sufficient
andand
appropriate
to provide
a basis
forfor
our
audit
opinion.
We believe
thataudit
the audit
evidence
we have
obtained
in our
audit
is sufficient
appropriate
to provide
a basis
our
audit
opinion.
Opinion
Opinion
In ourInopinion,
the financial
statements
present
fairly,
in allinmaterial
respects,
the the
financial
position
of Manitoba
Pork
Council
asasatat
our opinion,
the financial
statements
present
fairly,
all material
respects,
financial
position
of Manitoba
Pork
Council
December
31, 2014
and the
of itsofoperations
and and
its cash
flows
for the
year
then
ended
in accordance
with
Canadian
accounting
December
31, 2014
andresults
the results
its operations
its cash
flows
for the
year
then
ended
in accordance
with
Canadian
accounting
standards
for not-for-profit
organizations.
standards
for not-for-profit
organizations.
Winnipeg,
Manitoba
Winnipeg,
Manitoba
MarchMarch
18, 2015
18, 2015
2500 -2500
201 Portage
Ave., Ave.,
Winnipeg,
Manitoba,
R3B R3B
3K6,3K6,
Phone:
(204)(204)
775-4531,
1 (877)
500-0795
- 201 Portage
Winnipeg,
Manitoba,
Phone:
775-4531,
1 (877)
500-0795
16
Chartered
Accountants
Chartered
Accountants
Statement of Financial Position Manitoba Pork Council
Statement
of Financial
Position
Manitoba
Pork Council
As
at
December
31, 2014
Statement of Financial Position
As at December 31, 2014
As at December 31, 2014
2014
2013
Statement of Financial
Position
2014
2013
As at December
31, 2014
Assets
Current
Assets
340,223
2014
808,992
340,223
38,209
808,992
3,484,271
38,209
Cash
Current
Accounts
receivable (Note 3)
Cash
Prepaid
expenses
and
deposits
Accounts receivable
(Note
3)
Assets
Short-term
investments
(Note 2)
Prepaid
expenses
and
deposits
Current
Short-term investments (Note 2)
Cash
Accounts receivable (Note 3)
Prepaid
expenses
Capital
assets
(Noteand
4) deposits
Short-term investments (Note 2)
Capital assets (Note 4)
Investment in joint venture (Note 5)
3,484,271
340,223
808,992
4,671,695
38,209
125,235
4,671,695
3,484,271
125,235
26,582
3,319,849
520,689
845,497
4,742,246
56,211
156,355
4,742,246
3,319,849
156,355
32,934
Trademark
Capital assets (Note 4)
Trademark
26,582
4,671,695
1,964
125,235
1,964
32,934
4,742,246
1,964
156,355
1,964
Trademark
26,582
4,825,476
1,964
4,825,476
32,934
4,933,499
1,964
4,933,499
Accounts payable and accruals (Note 6)
Current
1,048,562
4,825,476
1,048,562
816,271
4,933,499
816,271
1,048,562
125,235
300,000
125,235
550,000
300,000
2,801,679
550,000
816,271
156,355
300,000
156,355
550,000
300,000
3,110,873
550,000
Liabilities
Current
Liabilities
Liabilities
Current
Net
Assets
Invested
in capital assets
Net Assets
Crisis
management
fund
Invested
in capital assets
Closure
fund
Crisis management fund
Unrestricted
Closure fund
Net Assets
Unrestricted
Invested
in capital assets
Crisis management fund
Closure fund
Unrestricted
Approved on behalf of the Board
Approved on behalf of the Board
Director
Approved
Director on behalf of the Board
Director
Director
Director
520,689
2013
845,497
520,689
56,211
845,497
3,319,849
56,211
2,801,679
125,235
3,776,914
300,000
550,000
3,776,914
2,801,679
4,825,476
3,110,873
156,355
4,117,228
300,000
550,000
4,117,228
3,110,873
4,933,499
4,825,476
3,776,914
4,933,499
4,117,228
4,825,476
4,933,499
Director
The accompanying notes are an integral part of these financial statements
1
Manitoba Pork 2014 Financial Statements
1
17
Statement of Operations
Statement of Operations
For the year ended December 31, 2014
2014
Revenue
Market hog and breeding stock levy
Weanling levy
Investment
Program
Miscellaneous revenue
Expenses
Amortization
Animal care
Environment and stewardship
Consumer marketing
Foreign animal disease readiness
Sustainable development
Human resources and training
Swine production research
Trade advocacy
Workplace safety and health
Quality assurance
Industry association
Public relations
Program salaries and administration expenses (Schedule 1)
(Deficiency) excess of revenue over expenses before other items
Other items
Patterson GlobalFoods Institute
Sponsorships
Bruce D Campbell Farm and Food Discovery Centre
Country of Origin Labelling
Share of deficiency of revenues over expenses of Manitoba Hog Grading Inc.
(Deficiency) excess of revenue over expenses
2013
3,597,552
253,493
164,421
55,741
30,081
3,603,329
347,660
107,718
31,596
31,016
4,101,288
4,121,319
70,076
44,210
80,000
49,097
195,756
189,382
61,870
292,980
78,143
48,207
7,240
684,796
735,207
79,791
40,722
105,000
58,704
18,671
130,757
13,593
254,525
56,356
51,039
5,575
711,319
816,750
2,536,964
1,846,455
2,342,802
1,600,601
4,383,419
3,943,403
(282,131)
177,916
(50,083)
(1,748)
(6,352)
(125,000)
(20,000)
(2,631)
(2,016)
(58,183)
(149,647)
(340,314)
28,269
18
2
Statement of Changes in Net Assets
Manitoba
Manitoba Pork
Pork Council
Council
Statement of Changes in Net Assets
Statement
of Changes in Net Assets
Invested
Invested
in
capital
in capital
assets
assets
Crisis
Crisis
management
management
fund
fund
156,355
156,355
300,000
300,000
Net assets, beginning of
Net
yearassets, beginning of
year
Excess (deficiency) of
Excess
of
revenue(deficiency)
over expenses
revenue over expenses
Transfer for capital asset
Transfer
for capital asset
purchases
purchases
Net assets, end of year
Net assets, end of year
Closure fund
Closure fund
Unrestricted
Unrestricted
550,000
550,000
4,117,228
4,117,228
4,088,959
4,088,959
(340,314)
(340,314)
28,269
28,269
-
-
(270,238)
(270,238)
38,956
38,956
-
-
(38,956)
(38,956)
300,000
300,000
550,000
550,000
Statement of Cash Flows
2013
2013
3,110,873
3,110,873
(70,076)
(70,076)
125,235
125,235
2014
2014
2,801,679
2,801,679
-
3,776,914
3,776,914
-
4,117,228
4,117,228
Manitoba
ManitobaPork
PorkCouncil
Council
Statement
Statement
ofof
Cash
Cash
Flows
Flows
ForFor
thethe
year
year
ended
ended
December
December
31,31,
2014
2014
2014
2014
Operating
Operating
activities
activities
(Deficiency)
(Deficiency)
excess
excess
of of
revenue
revenue
over
over
expenses
expenses
Share
Share
of of
deficiency
deficiency
of of
revenues
revenues
over
over
expenses
expenses
of of
Manitoba
Manitoba
Hog
Hog
Grading
Grading
Inc.
Inc.
Amortization
Amortization
(Increase)
(Increase)
decrease
decrease
in in
fairfair
value
value
of of
short-term
short-term
investments
investments
Changes
Changes
in in
working
working
capital
capital
accounts
accounts
Accounts
Accounts
receivable
receivable
Prepaid
Prepaid
expenses
expenses
and
and
deposits
deposits
Accounts
Accounts
payable
payable
and
and
accruals
accruals
Investing
activities
Investing
activities
Net
Net
(purchase)
(purchase)
proceeds
proceeds
from
from
short-term
short-term
investments
investments
Additions
Additions
to to
capital
capital
assets
assets
Increase
(decrease)
cash
resources
Increase
(decrease)
in in
cash
resources
Cash
Cash
resources,
resources,
beginning
beginning
of of
year
year
Cash
resources,
end
year
Cash
resources,
end
of of
year
2013
2013
(340,314)
(340,314)
6,352
6,352
70,076
70,076
(76,771)
(76,771)
28,269
28,269
2,016
2,016
79,791
79,791
36,462
36,462
(340,657)
(340,657)
146,538
146,538
36,505
36,505
18,002
18,002
232,291
232,291
25,496
25,496
(20,639)
(20,639)
(232,151)
(232,151)
(53,859)
(53,859)
(80,756)
(80,756)
(87,651)
(87,651)
(38,956)
(38,956)
255,820
255,820
(21,084)
(21,084)
(126,607)
(126,607)
234,736
234,736
(180,466)
(180,466)
520,689
520,689
153,980
153,980
366,709
366,709
340,223
340,223
520,689
520,689
3
3
19
Schedule 1
Manitoba
Pork expenses
Council
Schedule 1 - Program salaries and
administration
Schedule 1 - Program salaries and
administration
expenses
Program salariesSchedule
and1 -administration
expenses
Program salaries and administration
expenses
2014
2013
2014
2013
Bad debts (recoveries)
Bad debts
(recoveries)
Board
(Note
7)
Board
Business(Note
tax 7)
Business tax
Computer
support
Computer
Conferences
Bad debtssupport
(recoveries)
Conferences
Employee
benefits
Board (Note
7)
Employee
benefits
Employee
Business training
tax
Employee
Insurance
Computertraining
support
Insurance
Maintenance
Conferences
Maintenance
Meetings
Employee benefits
Meetings
Memberships
and subscriptions
Employee training
Memberships
Miscellaneous
Insurance and subscriptions
Miscellaneous
Office
supplies
Maintenance
Office
supplies
Postage
Meetings
Postage
Professional
fees
Memberships
and subscriptions
Professional
fees
Rent/lease
Miscellaneous
Rent/lease
Program
and administrative salaries
Office supplies
Program
Telephone
Postageand administrative salaries
Telephone
Travel
Professional fees
Travel
Utilities
Rent/lease
Utilities
Program and administrative salaries
Telephone
Travel
Utilities
2014
1,704
1,704
180,990
180,990
2,832
2,832
72,518
72,518
6,314
1,704
6,314
144,424
180,990
144,424
2,832
14,522
72,518
14,522
24,750
6,314
24,750
159,910
144,424
159,910
13,272 13,272
14,219
14,522
14,219
25,324
24,750
25,324
4,348
159,910
4,348
71,374
13,272
71,374
67,457
14,219
67,457
930,689
25,324
930,689
40,694
4,348
40,694
54,291
71,374
54,291
16,823
67,457
16,823
930,689
40,694
54,291
1,846,455
1,846,455
16,823
2013
(7,308)
(7,308)
185,660
185,660
3,098
3,098
57,646
57,646
4,059
(7,308)
4,059
132,835
185,660
132,835
2,651
3,098
2,651
8,561
57,646
8,561
21,970
4,059
21,970
142,817
132,835
142,817
10,196
2,651
10,196
25,826
8,561
25,826
27,396
21,970
27,396
8,830
142,817
8,830
55,673
10,196
55,673
66,511
25,826
66,511
756,336
27,396
756,336
30,923
8,830
30,923
49,058
55,673
49,058
17,863
66,511
17,863
756,336
30,923
49,058
1,600,601
1,600,601
17,863
1,846,455
1,600,601
15
15
15
20
Notes to the Financial Statements
1.
Significant accounting policies
The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit
organizations as issued by the Accounting Standards Board in Canada and include the following significant accounting
policies:
[a] Operations of Manitoba Pork Council
Manitoba Pork Council (the "Council”) is the membership association of the Province of Manitoba’s hog producers. The
mission of the Council is to foster the sustainability and prosperity of the pork industry for the good of all hog farmers and all
Manitobans.
The Council collects a $0.80 (2013 - $0.80) levy on market hogs produced and processed in Manitoba, including sows and
boars. In addition, a levy is collected on hogs involved in inter-provincial and export trade at $0.80 (2013- $0.80) on market
hogs, sows and boars, and $0.19 (2013 - $0.19) on weanlings (hogs under 30 kgs). The levy is subject to periodic review
and approval by the Manitoba Farm Products Marketing Council. The levy is the primary revenue source for the Council’s
operation.
The Council is a not-for-profit organization and is not subject to tax under the provisions of the Income Tax Act (Canada).
[b] Revenue recognition
The Council follows the deferral method of accounting for revenue and its net assets. Restricted contributions are
recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as
revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably
assured.
Levy revenue is recognized in the year that hogs are processed or exported, provided collection of the levies is reasonably
assured.
Program revenue, interest and investment revenue are recognized as earned.
[c] Net assets
Net assets are accounted for in the categories described below to recognize various restrictions imposed on the use of the
Council's funds:
[i]
Invested in capital assets - These net assets consist of the Council’s investment in its capital assets.
[ii]
Crisis Management Fund - The Crisis Management Fund was established to offset the unforeseen irregularity of
levy revenue and address unforeseen emergencies.
[iii]
Closure Fund - The Closure Fund was established to allow the Council to meet all outstanding obligations in the
event of a wind-up of operations.
[iv]
Unrestricted - Unrestricted net assets are comprised of the net accumulated revenue and expenses of the general
operations of the Council, less amounts transferred to the Crisis Management Fund and the Closure Fund and
amounts invested in capital assets.
[d] Short-term investments and investment income
Publicly-traded securities are valued based on the latest bid prices and money market funds are valued based on reported
unit values. Corporate and government fixed income bonds are valued based on reported unit values plus accrued income,
which approximates fair value. Transactions are recorded on a settlement date basis and transaction costs are expensed as
incurred.
Investment income, which consists of interest, dividends and realized and unrealized gains and losses, is included in
investment revenue in the statement of operations.
5
Manitoba Pork 2014 Notes to the Financial Statements
21
1.
(Continued from previous page)
[e] Capital assets
Capital assets are stated at cost less accumulated amortization. Normal maintenance and repairs are expensed as incurred.
Amortization is provided over the estimated useful lives of the assets as follows:
Computer equipment and vehicle
Computer software and website
development
Furniture and equipment
Leasehold improvements
Method
declining balance
straight-line
Rate
30 %
4 years
declining balance
straight line
20-30 %
term of lease
[f] Trademark
The Council's trademark represents an intangible asset not subject to amortization. Intangible assets not subject to
amortization are recorded at cost, less any provision for permanent impairment. Impairment is tested if events or changes
in circumstances indicate that the asset may be impaired. The impairment test consists of a comparison of the carrying
value of the Council's intangible asset with its fair value, and any excess is recorded as a charge to net earnings. Fair value
of the Council's intangible assets is determined through a discounted cash flow analysis.
[g] Investments
Joint venture
The investment in Manitoba Hog Grading Inc. is a non-share joint venture interest. The investment is accounted for using the
equity method. Under this method, the Council includes in income its share of the excess or shortfall of revenue over
expenses of Manitoba Hog Grading Inc.
Controlled organizations
The results of the controlled organizations are not consolidated and are disclosed in the notes to the financial statements.
Controlled organizations include Manitoba Pork Credit Corporation included in Note 8 and Swine Research and
Development Corporation which ceased operations in 2007.
[h] Retirement allowances and pension costs and obligations
The Council provides retirement allowances and pension benefits to its employees.
Retirement allowances are provided to certain qualifying employees and are based on Manitoba Government Employees’
Union guidelines. The benefits are provided under a final pay plan. The costs of benefits earned by employees are charged
to expenses as services are rendered. The costs are actuarially determined using the projected benefit method and reflect
management’s best estimates of the length of service, salary increases and ages at which employees will retire. In addition,
adjustments arising from plan amendments, changes in assumptions, and the actuarial present value of the accrued
entitlement are amortized and expensed on a straight line basis over the expected average remaining service life of the
employee group. Actuarial gains and losses are recognized in income immediately.
Employees of the Council are provided pension benefits by the Civil Service Superannuation Fund (the “Fund”). Under
paragraph 6 of the Civil Service Superannuation Act, the Council is described as a “matching employer” and its contribution
toward the pension benefits is limited to matching the employees’ contributions to the Fund. The Council’s contribution for
the year was $41,857 (2013 - $35,815) and is included in employee benefits expense.
In addition, employees of the Council are entitled to enhanced pension benefits. A pension liability has been established for
those employees whose annual earnings exceed the limit under the Civil Service Superannuation Fund Plan. The Council's
contribution for the year was $8,777 (2013 - $8,694) and is included in the employee benefits expense. The cost is
actuarially determined using the projected benefit method and reflects management's best estimate of salary increases and
the age at which the employees will retire.
22
6
1.
(Continued from previous page)
[i] Program expenses
Program expenses are reported separately from program revenue.
industry contributions, which are recorded as revenue.
Some programs have related income from grants or
[j] Financial instruments
The Council recognizes its financial instruments when the Council becomes party to the contractual provisions of the
financial instrument. All financial instruments are initially recorded at their fair value, including financial assets and liabilities
originated and issued in a related party transaction with management. Financial assets and liabilities originated and issued in
all other related party transactions are initially measured at their carrying or exchange amount in accordance with CPA 3840
Related Party Transactions.
At initial recognition, the Council may irrevocably elect to subsequently measure any financial instrument at fair value. The
Council has elected to measure its short-term investments in government and corporate fixed income bonds at fair value.
Fair value is determined by reported unit values.
The Council subsequently measures investments in equity instruments quoted in an active market at fair value. Fair value
is determined by published prices. This includes Canadian equities and money market funds included in short-term
investments.
All other financial assets and liabilities are subsequently measured at amortized cost, using the effective interest rate
method. This includes cash, accounts receivable, and accounts payable and accruals.
Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial
instruments subsequently measured at fair value are immediately recognized in the statement of operations for the current
period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial instruments
subsequently measured at amortized cost.
[k] 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 the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period.
Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is
provided where considered necessary. Amortization is based on the estimated useful lives of capital assets. Pension and
severance obligations are valued based on estimates of appropriate discount rates and rates of compensation increases.
These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in
excess of revenues and expenses in the periods in which they become known.
7
23
Manitoba
ManitobaPork
PorkCouncil
Council
Notes
Notestotothe
theFinancial
FinancialStatements
Statements
For
For
the
theyear
year
ended
endedDecember
December
31,
31,
2014
2014
2.2.
Short-term
Short-terminvestments
investments
Short-term
Short-terminvestments
investmentsconsist
consist
ofof
the
thefollowing:
following:
2014
2014
Fair
Value
Fair
Value
$$
Cost
Cost
$$
Fair
Value
Fair
Value
$$
Cost
Cost
$$
214,514
214,514
212,579
212,579
32,194
32,194
31,201
31,201
2,504,629
2,504,629
2,445,361
2,445,361
2,564,957
2,564,957
2,537,740
2,537,740
765,128
765,128
554,742
554,742
722,698
722,698
556,090
556,090
3,484,271
3,484,271
3,212,682
3,212,682
3,319,849
3,319,849
3,125,031
3,125,031
MoneyMarket
Market
funds
Money
funds
Government
Government
fixed
fixedincome
incomebonds
bonds
ofof
2.05%
2.05%toto4.85%
4.85%
(2013
(2013- 2.00%
- 2.00%toto5.00%)
5.00%)
maturing
maturingDecember
December
2016
2016
totoJune
June2020
2020(2013
(2013- March
- March2014
2014totoJune
June2020)
2020)
Equities,
Equities,
Canadian
Canadian
3.3.
2013
2013
Accounts
Accountsreceivable
receivable
2014
2014
2013
2013
1,023,379
1,023,379
(214,387)
(214,387)
1,058,179
1,058,179
(212,682)
(212,682)
808,992
808,992
845,497
845,497
Accumulated
Accumulated
Cost
Cost amortization
amortization
2014
2014
Net
Net
book
book
value
value
Accountsreceivable
receivable
Accounts
Allowance
Allowanceforfor
doubtful
doubtful
accounts
accounts
4.4.
Capital
Capital
assets
assets
Computer
equipment
andvehicle
vehicle
Computer
equipment
and
Computer
Computer
software
softwareand
andwebsite
websitedevelopment
development
Furniture
Furnitureand
andequipment
equipment
Leasehold
Leaseholdimprovements
improvements
Computer
equipment
andvehicle
vehicle
Computer
equipment
and
Computer
Computer
software
softwareand
andwebsite
websitedevelopment
development
Furniture
Furnitureand
andequipment
equipment
Leasehold
Leaseholdimprovements
improvements
24
88
452,251
452,251
177,428
177,428
309,380
309,380
133,559
133,559
370,275
370,275
159,591
159,591
283,958
283,958
133,559
133,559
81,976
81,976
17,837
17,837
25,422
25,422
- -
1,072,618
1,072,618
947,383
947,383
125,235
125,235
Accumulated
Accumulated
Cost
Cost amortization
amortization
2013
2013
Net
Net
book
book
value
value
413,294
413,294
177,428
177,428
309,380
309,380
133,559
133,559
345,305
345,305
129,781
129,781
277,261
277,261
124,959
124,959
67,989
67,989
47,647
47,647
32,119
32,119
8,600
8,600
1,033,661
1,033,661
877,306
877,306
156,355
156,355
Manitoba
Manitoba
Pork
Pork
Council
Council
Notes
Notes
toto
the
the
Financial
Financial
Statements
Statements
ForFor
thethe
year
year
ended
ended
December
December
31,31,
2014
2014
5. 5.
Investment
Investment
in joint
in joint
venture
venture
TheThe
Council
Council
hashas
entered
entered
intointo
a joint
a joint
venture
venture
agreement
agreement
with
with
twotwo
Manitoba
Manitoba
pork
pork
processors,
processors,
which
which
established
established
Manitoba
Manitoba
Hog
Hog
Grading
Grading
Inc.Inc.Manitoba
Manitoba
Hog
Hog
Grading
Grading
Inc.Inc.
is aisnot-for-profit
a not-for-profit
entity
entity
which
which
was
was
established
established
to perform
to perform
audits
audits
on on
carcass
carcass
grading
grading
proficiency
proficiency
of federally
of federally
inspected
inspected
pork
pork
processing
processing
plants.
plants.
A financial
A financial
summary
summary
of the
of the
Council's
Council's
50%
50%
interest
interest
in this
in this
entity
entity
as as
at December
at December
31 31
andand
for for
thethe
year
year
then
then
ended
ended
is as
is as
follows:
follows:
Financial
Position
Financial
Position
Assets
Assets
Liabilities
Liabilities
NetNet
assets
assets
Results
Results
of operations
of operations
Revenues
Revenues
Expenses
Expenses
Excess
Excess
(deficiency)
(deficiency)
of revenues
of revenues
over
over
expenses
expenses
Cash
Cash
flows
flows
Cash
Cash
provided
provided
by by
operations
operations
2014
2014
2013
2013
39,850
39,850
(13,270)
(13,270)
42,635
42,635
(9,701)
(9,701)
26,580
26,580
32,934
32,934
49,362
49,362
(55,714)
(55,714)
53,545
53,545
(55,561)
(55,561)
(6,352)
(6,352)
(2,016)
(2,016)
(724)
(724)
2,429
2,429
At December
At December
31,31,
2014,
2014,
there
there
was
was
a balance
a balance
of $15,103
of $15,103
(2013
(2013
- $9,356)
- $9,356)
owing
owing
from
from
Manitoba
Manitoba
Hog
Hog
Grading
Grading
Inc.Inc.
to the
to the
Council.
Council.
TheThe
amount
amount
is included
is included
in the
in the
Council's
Council's
accounts
accounts
receivable.
receivable.
TheThe
Council
Council
charged
charged
Manitoba
Manitoba
Hog
Hog
Grading
Grading
Inc.Inc.
$1,800
$1,800
(2013
(2013
- $1,800)
- $1,800)
for for
rentrent
andand
$4,800
$4,800
(2013
(2013
- $4,800)
- $4,800)
for for
administration.
administration.
TheThe
rental
rental
income
income
is netted
is netted
against
against
rent/lease
rent/lease
expense
expense
andand
thethe
administration
administration
income
income
is included
is included
in in
investment
investment
revenue.
revenue.These
These
transactions
transactions
were
were
in the
in the
normal
normal
course
course
of operations
of operations
andand
were
were
measured
measured
at the
at the
exchange
exchange
amount,
amount,
which
which
is the
is the
amount
amount
of consideration
of consideration
established
established
andand
agreed
agreed
to by
to by
thethe
related
related
parties.
parties.
6. 6.
Accounts
payable
and
accruals
Accounts
payable
and
accruals
Accounts
payable
Accounts
payable
Accrued
Accrued
salaries
salaries
andand
vacation
vacation
paypay
Accrued
Accrued
retirement
retirement
benefits
benefits
Goods
Goods
andand
Services
Services
TaxTax
payable
payable
Agricultural
Agricultural
Research
Research
andand
Development
Development
Initiative
Initiative
Agricultural
Agricultural
Sustainability
Sustainability
Initiative
Initiative
Canadian
Canadian
Swine
Swine
Health
Health
Board
Board
- Mortality
- Mortality
Insurance
Insurance
Humane
Humane
Destruction
Destruction
Centre
Centre
National
National
Centre
Centre
for for
Livestock
Livestock
andand
thethe
Environment
Environment
- Sustainable
- Sustainable
Nutrient
Nutrient
Management
Management
Growing
Growing
Innovation
Innovation
Growing
Growing
Assurance
Assurance
9 9
2014
2014
2013
2013
608,488
608,488
171,873
171,873
232,083
232,083
- 10,000
10,000
8,800
8,800
- - - 5,000
5,000
12,318
12,318
394,195
394,195
146,954
146,954
216,581
216,581
3,841
3,841
10,000
10,000
8,800
8,800
2,966
2,966
2,654
2,654
30,280
30,280
- - -
1,048,562
1,048,562
816,271
816,271
25
Notes
Notestotothe
theFinancial
FinancialStatements
Statements
Manitoba
ManitobaPork
PorkCouncil
Council
For
Forthe
theyear
yearended
endedDecember
December31,
31,2014
2014
7.7.
Board
Board members'
members'remuneration
remunerationand
anddisbursements
disbursements
Board
Boardmembers'
members'remuneration
remunerationand
anddisbursements
disbursementsconsist
consistofofthe
thefollowing:
following:
MPC
MPC
Days
Days
DirectoratatLarge
Large(Chair)
(Chair)– –Karl
KarlKynoch
Kynoch
Director
WestDistrict
District– –Rick
RickPrejet
Prejet
West
EastDistrict
District(Vice-Chair)
(Vice-Chair)– –Rick
RickBergmann
Bergmann
East
EastDistrict
District(Executive)
(Executive)– –Scott
ScottPeters
Peters
East
DirectoratatLarge
Large– –Wendy
WendyFriesen
Friesen(to
(toSept
Sept30)
30)
Director
WestDistrict
District(Executive)
(Executive)– –George
GeorgeMatheson
Matheson
West
NorthStar
StarProducers
ProducersDistrict
District– –David
DavidWaldner
Waldner
North
HutterSchwein
SchweinDistrict
District– –James
JamesHofer
Hofer
Hutter
MapleLeaf
LeafAgri-Farms
Agri-FarmsDistrict
District– –Glenn
GlennGratton
Gratton
Maple
HyLifeDistrict
District– –Claude
ClaudeVielfaure
Vielfaure
HyLife
CPC
CPCStipend
Stipendand
and
Days
Days per
perdiem
diem
Expenses
Expenses
2014
2014
2013
2013
84.50
84.50 2.00
2.00
18.00
18.00
-25.50
25.50 69.00
69.00
19.50
19.50
-25.50
25.50
-41.50
41.50 5.00
5.00
8.00
8.00
-39.00
39.00
-12.00
12.00 4.50
4.50
9.00
9.00 12.50
12.50
41,473
41,473
4,605
4,605
15,951
15,951
8,983
8,983
8,135
8,135
17,658
17,658
2,000
2,000
10,043
10,043
3,233
3,233
3,820
3,820
26,702
26,702
5,547
5,547
7,715
7,715
3,851
3,851
5,149
5,149
7,311
7,311
1,188
1,188
4,510
4,510
1,044
1,044
2,072
2,072
68,175
68,175
10,152
10,152
23,666
23,666
12,834
12,834
13,284
13,284
24,969
24,969
3,188
3,188
14,553
14,553
4,277
4,277
5,892
5,892
68,910
68,910
10,735
10,735
30,932
30,932
4,175
4,175
20,612
20,612
23,944
23,944
5,714
5,714
12,091
12,091
4,531
4,531
4,016
4,016
282.50
282.50 93.00
93.00
115,901
115,901
65,089
65,089
180,990
180,990
185,660
185,660
InIn2011,
2011,delegates
delegatesapproved
approvedchanges
changestotoManitoba
ManitobaPork
PorkCouncil's
Council'sAdministrative
AdministrativeBy-law
By-lawwhich
whichresulted
resultedininchanges
changestotothe
the
district
districtstructure
structureeffective
effectiveApril
April5,5,2012.
2012. Five
Fivegeographic
geographicdistricts
districtsmerged
mergedinto
intotwo
twodistricts
districts(East
(Eastand
andWest),
West),and
andtwo
two
directors-at-large
directors-at-largepositions
positionswere
werecreated.
created. The
Thetotal
totalnumber
numberofofdirectors
directorsremained
remainedthe
thesame
same(11).
(11). AtAtthe
thedissolution
dissolutionofofthe
the
Puratone
PuratoneDistrict
District(effective
(effectiveDecember
December14,
14,2012),
2012),the
theBoard
Boardnow
nowconsists
consistsofof1010directors.
directors.
The
TheChair's
Chair'sremuneration
remunerationisisa acombination
combinationofofa a$17,325
$17,325(2013
(2013- $16,500)
- $16,500)annual
annualstipend,
stipend,ininaddition
additiontotoper
perdiems.
diems. The
Theper
per
diem
diemrates
ratesare
are$290
$290(2013
(2013- $275)
- $275)for
forthe
theChair
Chairand
and$265
$265(2013
(2013- $250)
- $250)for
forDirectors.
Directors.
The
TheVice-Chair
Vice-Chairreceives
receivesananannual
annualstipend
stipendofof$8,670
$8,670(2013
(2013- $8,250)
- $8,250)and
andExecutive
Executivemembers
membersreceive
receiveananannual
annualstipend
stipendofof
$5,775
$5,775(2013
(2013- $5,500)
- $5,500)ininaddition
additiontotoper
perdiems.
diems.
The
TheExecutive
ExecutiveCommittee
Committeeisiscomprised
comprisedofofthe
theChair,
Chair,Vice-Chair
Vice-Chairand
andtwo
twoExecutive
Executivemembers.
members.
The
Theschedule
scheduleexcludes
excludesexpenses
expensesofof$11,018
$11,018and
andper
perdiems
diemsofof$26,875
$26,875(2013
(2013– –expenses
expensesofof$6,887
$6,887and
andper
perdiems
diemsofof$24,175)
$24,175)
that
thatwere
werereimbursed.
reimbursed.
1010
26
Manitoba
Manitoba
Pork
Pork
Council
Council
Notes
Notes
toto
the
the
Financial
Financial
Statements
Statements
ForFor
thethe
year
year
ended
ended
December
December
31,31,
2014
2014
8. 8.
Manitoba
Manitoba
Pork
Pork
Credit
Credit
Corporation
Corporation
Manitoba
Manitoba
Pork
Pork
Credit
Credit
Corporation
Corporation
(“MPCC”)
(“MPCC”)
was
was
incorporated
incorporated
on on
July
July
24,24,
2007
2007
andand
hashas
no no
authorized
authorized
share
share
capital.
capital.
MPCC’s
MPCC’s
Board
Board
of Directors
of Directors
is the
is the
same
same
as as
thatthat
of the
of the
Council.
Council.
MPCC’s
MPCC’s
undertakings
undertakings
areare
limited
limited
to conducting
to conducting
programs
programs
to to
assist
assist
hoghog
producers
producers
in the
in the
production
production
of hogs
of hogs
in Western
in Western
Canada,
Canada,
thethe
marketing
marketing
of such
of such
hogs,
hogs,
andand
in stimulating,
in stimulating,
increasing
increasing
andand
improving
improving
thethe
economic
economic
well-being
well-being
of the
of the
hoghog
industry
industry
in Western
in Western
Canada.
Canada.
In the
In the
event
event
of the
of the
dissolution
dissolution
or or
wind-up
wind-up
of MPCC,
of MPCC,
thethe
remaining
remaining
property
property
of MPCC,
of MPCC,
after
after
payment
payment
of all
of all
debts
debts
andand
liabilities,
liabilities,
shall
shall
be be
distributed
distributed
to the
to the
Council
Council
or aorsimilar
a similar
not-for-profit
not-for-profit
organization
organization
in Manitoba.
in Manitoba.
At December
At December
31,31,
2014,
2014,
there
there
was
was
a balance
a balance
of $151,384
of $151,384
(2013
(2013
- $58,440)
- $58,440)
owing
owing
from
from
MPCC
MPCC
to the
to the
Council.
Council.
This
This
amount
amount
is is
included
included
in the
in the
Council’s
Council’s
accounts
accounts
receivable.
receivable.
MPCC
MPCC
hashas
notnot
been
been
consolidated
consolidated
in the
in the
Council’s
Council’s
financial
financial
statements.
statements.
A financial
A financial
summary
summary
of this
of this
unconsolidated
unconsolidated
entity
entity
as as
at December
at December
31 31
andand
for for
thethe
years
years
then
then
ended
ended
areare
as as
follows:
follows:
2014
2014
Financial
position
Financial
position
Assets
Assets
Liabilities
Liabilities
2013
2013
15,643,370
15,643,370 24,396,738
24,396,738
(15,781,704)
(15,781,704) (24,510,745)
(24,510,745)
NetNet
liabilities
liabilities
(138,334)
(138,334)
(114,007)
(114,007)
Results
Results
of operations
of operations
Revenues
Revenues
Expenses
Expenses
384,195
384,195
(408,522)
(408,522)
1,128,438
1,128,438
(972,561)
(972,561)
(24,327)
(24,327)
155,877
155,877
Excess
Excess
(deficiency)
(deficiency)
of revenues
of revenues
over
over
expenses
expenses
MPCC
MPCC
hashas
available
available
overdraft
overdraft
facilities
facilities
totaling
totaling
$180,000,000
$180,000,000
with
with
Royal
Royal
Bank
Bank
of Canada
of Canada
("RBC")
("RBC")
(2013
(2013
- $180,000,000),
- $180,000,000),
of of
which
which
$15,616,416
$15,616,416
was
was
utilized
utilized
as as
at December
at December
31,31,
2014
2014
(2013
(2013
- $24,440,009)
- $24,440,009)
in order
in order
to deliver
to deliver
thethe
Advance
Advance
Payments
Payments
Program
Program
under
under
thethe
Agricultural
Agricultural
Marketing
Marketing
Program
Program
ActAct
of Canada
of Canada
to hog
to hog
producers
producers
in Manitoba,
in Manitoba,
Saskatchewan,
Saskatchewan,
Alberta
Alberta
andand
British
British
Columbia.
Columbia.These
These
advance
advance
payments
payments
areare
guaranteed
guaranteed
in their
in their
entirety
entirety
by by
thethe
Federal
Federal
Government
Government
of Canada.
of Canada.TheThe
facilities
facilities
bear
bear
interest
interest
at prime
at prime
minus
minus
0.5%
0.5%
(2013
(2013
- prime
- prime
minus
minus
0.3%).
0.3%).
During
During
thethe
year,
year,
thethe
Council
Council
charged
charged
MPCC
MPCC
$1,985
$1,985
(2013
(2013
- $1,890)
- $1,890)
for for
rentrent
andand
$5,040
$5,040
(2013
(2013
- $5,040)
- $5,040)
for for
administration.
administration.
TheThe
rental
rental
income
income
is netted
is netted
against
against
rent/lease
rent/lease
expense
expense
andand
thethe
administration
administration
income
income
is included
is included
in investment
in investment
andand
other
other
revenue.
revenue.These
These
transactions
transactions
were
were
in the
in the
normal
normal
course
course
of operations
of operations
andand
were
were
measured
measured
at the
at the
exchange
exchange
amount,
amount,
which
which
is the
is the
amount
amount
of consideration
of consideration
established
established
andand
agreed
agreed
to by
to by
thethe
related
related
parties.
parties.
11 11
27
9.
Retirement and pension obligations
The Council measures its accrued benefit obligation for the retirement allowances as at December 31 of each year.
The most recent actuarial valuation report was at December 31, 2014.
Actuarial valuations are required every three years.
(a) Information about the Council’s retirement allowance plan is as follows:
2014
2013
Accrued benefit obligation
Balance, beginning of year
Current service cost
Interest cost
Experience (gain) loss and transitional adjustment
76,552
11,129
4,878
(809)
58,665
7,717
3,738
6,432
Balance, end of year
91,750
76,552
2014
2013
Interest cost
11,129
4,878
(809)
7,717
3,738
6,432
Total
15,198
17,887
$
$
The Council’s retirement allowance expense consists of the following:
$
$
The significant actuarial assumptions adopted in measuring the Council’s retirement allowance obligation are as follows:
2014
2013
6.00
3.75
6.00
3.75
%
Discount rate
Rate of compensation increase
%
12
28
9.
Retirement and Pension Obligations (continued from previous page)
(b) Information about the Council’s enhanced pension benefit plan is as follows:
2014
2013
Accrued benefit obligation
Balance, beginning of year
Interest cost
Employer benefit payments
140,029
8,923
(8,777)
158
134,527
8,573
(8,694)
5,623
Balance, end of year
140,333
140,029
2014
2013
8,923
(8,777)
158
8,573
(8,694)
5,623
304
5,502
$
$
The Council’s enhanced pension expense consists of the following:
$
Interest cost
Employer benefit payments
Total
$
The significant actuarial assumptions adopted in measuring the Council’s pension obligations are as follows:
2014
2013
6.00
3.75
6.00
3.75
%
Discount rate
Rate of compensation increase
14
%
29
Manitoba
Pork Council
For the
year ended December
31, 2014
10.
Financial instruments
10.
Financial
instruments
The
Council,
as part of its operations, carries a number of financial instruments. It is management's opinion that the Council
is not exposed to significant currency or liquidity risks arising from these financial instruments.
The
Council,
as part of its operations, carries a number of financial instruments. It is management's opinion that the Council
Credit
concentration
is not exposed to significant currency or liquidity risks arising from these financial instruments.
Financial instruments that potentially subject the Council to concentrations of credit risk consist primarily of trade accounts
Credit concentration
receivable.
Council revenues are concentrated in the hog sector. As at December 31, 2014, four customers accounted for
58%
(2013
- four customers
for 74%) subject
of total the
accounts
receivable.
No allowance
doubtful
provided
for any
Financial instruments
that potentially
Council
to concentrations
of creditfor
risk
consistaccounts
primarilywas
of trade
accounts
of
these amounts.
receivable.
Council revenues are concentrated in the hog sector. As at December 31, 2014, four customers accounted for
58% (2013
- four
Interest
rate
riskcustomers for 74%) of total accounts receivable. No allowance for doubtful accounts was provided for any
of these amounts.
Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest
Interest
rate risk
rates. Changes
in market interest rates may have an effect on the cash flows associated with some financial assets and
liabilities,rate
known
asthe
cash
onofthe
fair valueinstrument
of other financial
assets
or liabilities,
as priceinrisk.
Interest
risk is
riskflow
thatrisk,
the and
value
a financial
might be
adversely
affectedknown
by a change
the interest
rates. Changes in market interest rates may have an effect on the cash flows associated with some financial assets and
The
Council
is exposed
interest
with
to certain
short-term
investments.
short-term
liabilities,
known
as cashtoflow
risk, rate
and cash
on theflow
fairrisk
value
of respect
other financial
assets
or liabilities,
known asThe
price
risk.
investments are subject to fixed interest rates ranging from 2.05% - 4.85% (2013 – 2.00% - 5.06%) with maturity dates
ranging
fromisDecember
2016
to June
- March
2014 to to
June
2020).
The
Council
exposed to
interest
rate2020
cash(2013
flow risk
with respect
certain
short-term investments. The short-term
investments
are subject to fixed interest rates ranging from 2.05% - 4.85% (2013 – 2.00% - 5.06%) with maturity dates
Other price risk
ranging from December 2016 to June 2020 (2013 - March 2014 to June 2020).
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
Other
marketprice
pricesrisk
(other than those arising from interest rate risk or foreign currency risk), whether those changes are caused by
factors
specific
financial
instrument
its issuer,
orafactors
affecting
all similar
financialbecause
instruments
traded in
Other price risk to
is the
the individual
risk that the
fair value
or futureorcash
flows of
financial
instrument
will fluctuate
of changes
in
the
market.
The
Council
enters
into
transactions
to
purchase
and
sell
Canadian
equity
securities
for
which
the
market
priceby
market prices (other than those arising from interest rate risk or foreign currency risk), whether those changes are caused
fluctuates.
To to
manage
these risks,
the Council
hasor
estimated
target
mixaffecting
of investment
typesfinancial
designed
to achievetraded
the in
factors specific
the individual
financial
instrument
its issuer,a or
factors
all similar
instruments
optimal
return
within
reasonable
risk
tolerances.
the market. The Council enters into transactions to purchase and sell Canadian equity securities for which the market price
11.
fluctuates. To manage these risks, the Council has estimated a target mix of investment types designed to achieve the
Commitments
optimal return within reasonable risk tolerances.
11.
Commitments
The Council is committed, under operating leases, to future aggregate lease payments estimated to be as follows:
The Council is committed, under operating leases, to future aggregate lease payments estimated to be as follows:
2015
2016
2017
2015
2018
2016
2019
2017
83,280
84,780
82,215
83,280
90,780
84,780
18,913
82,215
2018
2019
90,780
359,968
18,913
359,968
Lease commitments include a share of common area costs which approximate $29,736
per year.
Lease commitments include a share of common area costs which approximate $29,736 per year.
14
14
30
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cmyk
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manitobapork.com

2014 Annual Report

Transcription

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