Business Plan

Transcription

1 Business Plan

2 Introduction A portion of the funds collected by the Beef Cattle Research, Market Development and Promotion Agency (operating as Canada Beef Inc.) are directed towards the Beef Cattle Research Council (BCRC). The BCRC was established in 1999 as an operating division of the Canadian Cattlemen s Association (CCA), the national association representing the interest of beef cattle producers. BCRC s mandate is to determine research and development priorities for the beef cattle industry and is responsible for national check-off funds allocated to research. Research and innovation are key to driving competitiveness and innovation in the Canadian beef cattle industry and meeting increased consumer demand for beef products on a global scale. As the only national beef cattle industry research agency, the BCRC plays an important role in identifying the industry s research priorities and subsequently influencing public sector investment in beef cattle research. The BCRC overarching goals are to: 1. Identify, fund and manage beef research and technology development in strategically focused priority areas of national significance as defined by industry stakeholders from across the national value chain. 2. Promote excellence in Canadian beef research and technology development by facilitating the exchange of information and expertise to encourage collaboration, discourage duplication and advocate the adoption of high standards. 3. Support and encourage rapid commercial adoption of new technologies to sustain competitive advantage. The BCRC s overall objectives and priorities are to: Continue to enhance the safety and quality of Canadian beef Ensure the integrity and high standards of animal health in the Canadian herd Improve and ensure the dissemination of knowledge throughout the industry Ensure that sound scientific principals and risk assessment are utilized in developing good production practices, industry and government policy and standards Support innovative projects designed to improve industry competitiveness Enhance international acceptance of Canadian beef quality and safety standards Environment Scan The Canadian beef industry is a significant contributor to Canada s economy. In 2010, farm cash receipts from cattle and calves exceeded $6 billion. Together with the multiplier effect from downstream economic activity, the beef industry contributes over $25 billion to Canada s GDP. Canadians presently consume 60 per cent of the beef produced in Canada, while 40 per cent is exported. Canada is the world s fourth largest beef exporter, and the world s second largest grain-fed beef exporter. Canada s exports peaked at 58 per cent of total cattle and beef production in Restricted market access due to BSE reduced Canada s exports below 40 per cent in 2003 and 2004, but they returned to 50 per cent in 2010, and are predicted to be at 44 per cent of total production in U.S. Country-of-Origin Labelling (COOL) laws and increased currency exchange rates have driven the most recent reductions in trade. 2012/13 BCRC Business Plan 1

3 Despite significant challenges over the last decade, the Canadian beef industry has recognized that there is significant opportunity to grow and expand over the long-term. This is based upon the fact that Canada has abundant resources (land, water, genetics, and infrastructure), and that there are growing markets for Canadian beef globally. Global beef consumption has grown and is projected to continue to increase an additional 3.7 million tonnes over the next decade. Global meat demand is being pulled by population growth, urbanization and an increasing middle class population in many developing countries. Canada is in an advantageous position to respond to demand signals and export opportunities in light of reduced global beef supplies. Within five years our industry is expected to move from consolidation to expansion. Higher prices in the fall of 2010 provided cow/calf producers with the first signals to reduce the liquidation that has been occurring since Increases in heifer retention have already taken place in 2011, pointing towards producers ability to quickly respond to market signals. Large areas of marginal land that is not suitable for cropping but ideal for grazing gives Canada an edge. In several other countries, grazing land has been diverted into crop production. Contraction of the U.S. and global cattle herds will support North American beef and cattle prices. The U.S. has seen a slow but steady liquidation of its beef herd over the last decade. Despite positive market signals, producers have not expanded and severe drought has compounded this issue due to lack of feed supplies. As one of the largest beef producers in the world, an expected decline in U.S. production will increase opportunities for Canadian product in exports marketed for grain-fed beef. A number of challenges need to be overcome if opportunities are to be captured by the Canadian beef industry. International market access and development continue to be a core priority for industry. There are also regulatory challenges around the enhanced feed ban, new product development and approvals, and other areas of importance. A high Canadian dollar and higher costs for inputs such as feed grains continues to also significantly impact industry competitiveness. The industry is also facing competition. Global competitors have made significant investments in marketing and research resources that are well in excess of Canada. There is growing recognition by the Canadian beef industry that increased investment and coordination of research to achieve desired industry outcomes is critical to ensuring the industry s long-term sustainability. In 2008 the BCRC and the Beef Value Chain Roundtable (BVCRT) launched a review of Canadian and international beef research. This study revealed that: 1. Industry support for research and development varies among beef producing countries. Thirteen per cent of producer check-off funds collected in Australia and the U.S. were directed towards research, while Canada was at 6 per cent. Since then, Canada s beef industry has increased the research allocation of the National Check-Off 150 per cent. 2. Canada s beef research funding is fragmented among at least thirty different funders. Each of these funders sets their own research priorities. This has led to situations where lots of funding gets directed towards the issue of the day, while equally important but less glamorous research gets overlooked, underfunded and neglected. 3. Fragmented funding increases the resources consumed by internal administration and makes it difficult to achieve a coherent national research direction focused on key 2012/13 BCRC Business Plan 2

4 outcomes. It is important to have clearly identified research priorities. It is equally important to base these priorities on clearly defined research outcomes that are aligned with industry goals. Many funds do not have clearly defined outcomes. The large number of small research funds with varying priorities also forces researchers to devote a considerable amount of time to applying for funds to maintain their research programs and reporting on funds received. This time comes at the expense of time otherwise used for teaching, publishing and technology transfer. 4. Some research programs require long-term funding to bear meaningful results. The current system of allocating and delivering government research funding on a three to five year basis needs to be re-examined. A three year perennial forage, animal breeding, or environmental field study will generate only preliminary results. In general, research provides a 6 or 7:1 return on investment. This is even higher when producer investments are considered. A study done for the Beef Cattle Research, Market Development and Promotion Agency reported that the overall return to producer check-off dollars was 9:1. Returns to marketing were 7.55:1, and returns to research were 46:1. However, the issues described above reduce returns to research investments. Consequently the BCRC and the BVCRT have developed a national beef research strategy as a supporting driver of industry s sustained success that provides a framework towards achieving national coordination of beef research priorities, funding and technology transfer efforts. National Beef Research Strategy and the Beef Cattle Industry Science Cluster In tandem with the development of the national beef research strategy, Agriculture and Agri- Food Canada (AAFC) launched the Agri-Science Cluster Initiative program under Growing Forward I and the BCRC took a leadership role in developing the Beef Cattle Industry Science Cluster. The Beef Cattle Industry Science Cluster, which was initiated in 2009, is an important first step in overcoming some of the challenges identified and provides a significant opportunity to strengthen research and development to address current and future competitive challenges facing Canada s beef cattle industry. The Cluster brings together Canada s largest industry and public beef research funders, BCRC and AAFC respectively, to align dollars and priorities to achieve research outcomes that will meet industry needs, accelerating the process of industry more formally coordinating with all stakeholders and funding a more comprehensive outcomebased research program that is more directly aligned with industry s vision and priorities. The Beef Cattle Industry Science Cluster is a four year initiative that the BCRC is committed to, with research funding being allocated for the period between April 1, 2009 and March 31, Industry and government funding commitments through the Cluster total $11.25 million directed to 32 research projects. This initiative, in which every National Check-off dollar is matched by six AAFC dollars, is focused on advancing research of priority through the collaboration of Canada s main public and industry beef research funder. In addition to the investments made through the Beef Cattle Industry Science Cluster, the BCRC has contributed over $4 million to nearly 60 other research initiatives. These BCRC investments have leveraged other industry and government dollars, leading to total funding exceeding $20 million. 2012/13 BCRC Business Plan 3

5 Core Activities for 2012/13 Beef Science Cluster Program Delivery Collaboration and investments under the Beef Cattle Industry Science Cluster are focused on two core research objectives under which more specific research programs have been established: Improve production efficiencies (approximately 65 per cent of funding): through enhanced feed and forage production, increased feed efficiency, decreased impact of animal health and welfare issues and production limiting diseases, and improved utilization of specified risk materials. Improve beef demand and quality (approximately 35 per cent of funding): through reduced food safety incidents; defining quality and yield benchmarks supporting the Canadian Beef Advantage and improved beef quality through an audit program and primary production improvements, and the development and application of post processing technologies to optimize cutout values. With research programs under the Cluster entering their fourth year in 2012/13, focus will be placed on deriving results from research and encouraging the application of relevant knowledge and technology within industry. Focus will also be placed on fulfilling AAFC reporting and financial management requirements to ensure the successful wrap up of the first Cluster. Growing Forward II - Beef Cattle Industry Science Cluster II Planning Planning for the next version of the Beef Cattle Industry Science Cluster under Growing Forward II will occur in 2012/13. In conjunction with the BVCRT, a results communication and priority setting consultative process is planned. This will include a national workshop and the direct engagement of key industry stakeholders. The feedback from producers, industry stakeholders and researchers will be used to establish priority research outcomes that the next cluster will be designed to achieve. The intent will be to have a comprehensive research plan and proposal ready for the commencement of Growing Forward II on April 1, To ensure a seamless transition between the first and second cluster, significant communication efforts have been underway with government to ensure Growing Forward II research programs are delivered in a timely manner with appropriate levels of funding and improved administrative efficiencies. Technology Transfer & Knowledge Dissemination The BCRC will continue to enhance its communication efforts through the publication of research fact sheets that are circulated through the CCA s Action News, monthly articles in partnership with provincial cattle organizations (and other agriculture media), and a regular research column in Canadian Cattlemen magazine. The BCRC will also continue to work with 2012/13 BCRC Business Plan 4

6 Canada Beef Inc. and the CCA s Animal Health, Animal Care, and Environment Committees on an ongoing basis on specific communication and policy issues. As a part of the Cluster, a long-term strategy has been developed to improve technology transfer and knowledge dissemination, with a clear focus on accelerating the uptake of research results by industry. The BCRC is committed to taking a leading role in enhancing technology transfer in the beef industry. This initiative is expected to make significant progress in the coming year with the hiring of a Beef Extension Coordinator in early 2012 who will work to raise the profile of technology transfer activities, as well as expanding the reach of the BCRC website and active exploration of social media in an effort to connect promising research with early-adopters. Focus will also be placed on cultivating technology transfer skills among the research community and fostering relationships between applied researchers and early research adopters so that new technologies will move from the lab into operations that stand to benefit. With the continued growth and expansion of the national Quality Starts Here Verified Beef Production TM on-farm food safety program, efforts will also be made to use this program as a direct channel of communicating research outcomes and disseminating knowledge related to food safety, quality, animal health and production efficiencies with program participants. In addition, a focus will be placed on utilizing provincial industry and government capacity to encourage knowledge dissemination and technology transfer. The launch of BCRC s Technology Transfer and Knowledge Dissemination strategy will complement ongoing BCRC efforts to ensure that industry and policy makers are aware of the value and results of industry funded research, and ultimately help fill the technology transfer functions that were at one time carried out by federal and provincial agriculture departments. Research Performance Reporting & Evaluation It has been identified by the BCRC that in order to demonstrate the value of investments in national check-off allocated to research, as well as encourage government to enhance their own investments in research, industry needs to take a leadership role in communicating the value of investments made in research. In addition, due to the limited number of research dollars and a large number of research priorities, industry also needs to consider in its priority and research program planning process the short-term and long-term returns to various investments options. It is difficult for industry to estimate the value of investments made in research, as well as to determine the relative returns of different research investment strategies. While the benefits from research can be direct and immediate, in many cases the benefits from research are indirect and long term. Consequently the BCRC has partnered with Canfax Research Services to develop and implement in the upcoming year an economic assessment tool that will aid in assessing the economic returns to beef research in Canada, developing BCRC research priorities, and track the economic benefit of BCRC funded research over the long term. 2012/13 BCRC Research Project Funding Recent decisions by Alberta Beef Producers, Saskatchewan Cattlemen s Association, British Columbia Cattlemen s Association and Nova Scotia Cattle Producers to increase the proportion of the National Check-off dollar allocated to research resulted in additional revenue 2012/13 BCRC Business Plan 5

7 that was not committed through the Cluster process. Consequently, the BCRC held a special call for proposals in the fall of 2011 and final funding decisions were made in December BCRC committed to investing $500,000 across four research projects in the areas of animal transport, animal health issues (lameness and acidosis), and carcass quality and grading. These projects will be initiated in mid Research Program Implementation Governance and Board The BCRC is an operating division of the CCA and is overseen by an operating committee comprised of industry representatives appointed by provincial associations contributing to the BCRC through the national check-off. There are currently 11 members on the BCRC committee including one representative from B.C., four from Alberta, two from Saskatchewan, one from Manitoba, two from Ontario, and one from the Atlantic region. The committee is responsible for the direction of all aspects of the BCRC program, reporting semiannually to the CCA Board of Directors. Voting representation on the committee is proportionate to the level of funding contributed through the National Check-off Agency, and each funding member has the right to appoint at least one representative to the BCRC committee. Other organizations may become contributors to and members of the BCRC if approved by the committee and the CCA Board. Such new members have the opportunity to appoint voting members to the BCRC committee. Non-members may be invited as observers to the committee, but there may be no permanent non-voting members. The BCRC oversees research program development and implementation, playing a key role in establishing and refining industry research priorities in consultation with other stakeholders. Annual business and program plans and budgets are recommended by the BCRC committee for consideration and approval by the CCA Executive and Board. Operational Management The BCRC is currently overseen by a Research Manager, appointed by the CCA management, who takes direction from the BCRC committee and reports to the CCA Executive. This role includes developing and managing the implementation of annual business and program plans and budgets, organizing and facilitating meetings on behalf of the committee, and providing the committee with advice and input as requested. In addition, the manager acts as a liaison and facilitation link among the BCRC committee, CCA and BCRC staff, technical advisors, and national and provincial interest groups with similar research objectives. In managing the national research strategy and the Beef Cattle Industry Science Cluster, an enhanced role for the manager will be to work even more closely with other government and industry funders. The manager will lead the process to establish comprehensive national beef research priorities, aligned with the national industry strategy, and encourage coordination of priorities and funding allocations between agencies. Focus will also be placed on improving communication and coordination between funders and to government regarding industry s priorities and funding allocations, as well as minimizing duplicative administrative and research efforts. To support current resources and manage the scope of projects undertaken within the Cluster, the BCRC has expanded to include a Science Director. Responsibilities include oversight of 2012/13 BCRC Business Plan 6

8 program development and administration, facilitating call for proposals or directed research requests, coordinating the review of research proposals including the BCRC s internal and peer review process, tracking and monitoring research progress, and working with the science advisory panel and the BCRC committee to aid in research program development. The science director is responsible for working with the technical administrator, overseeing annual research plan development, reviewing and critiquing project proposals and interim and final reports. A major role of the science director is to lead the technology transfer and knowledge dissemination process and enhanced communication program. To support the Technology Transfer & Knowledge Dissemination Strategy, the BCRC has recently hired a Beef Extension Coordinator to oversee the implementation of the strategy. This includes developing a carefully-focused, comprehensive approach to communications with industry stakeholders and researchers through the development of a comprehensive website, use of social media tools to communicate research results to industry stakeholders, and assisting researchers in incorporating effective technology transfer efforts into their research programs. To support the research program development process within the Cluster and ensure the delivery of research plans that are directed towards industry s research objectives and achieve the outcomes desired by industry, a Science Advisory Panel has been created. The panel is comprised of industry, academic and governmental scientific expertise, all considered to be leaders in their field, broad thinkers, and committed to evolving beef research in Canada. It is expected that additional members will be appointed to the Science Advisory Panel on an ongoing basis in order to engage individuals with specific research expertise and specialties where deficiencies have been identified to strengthen the panel. The Science Advisory Panel is engaged on an ongoing basis by the BCRC and serves an important function, bringing past experience and understanding to the table and linking industry priorities with research that is most likely to achieve outcomes aligned with those priorities. The Science Advisory Panel will also assist with technology transfer and knowledge dissemination process and identification of commercialization opportunities. Stakeholder Engagement and Annual Funding Process The BCRC believes it is important to review and adjust research and technology development priorities to respond to future industry needs and as a result, conducts priority setting workshops on an ongoing basis. Input is obtained from all areas of industry, researchers, and funding organizations to ensure the industry and its stakeholders obtain the maximum benefit from research funded by the BCRC. The results of the workshops, along with input received from more focused stakeholder engagement where necessary, is collected and further developed by staff to facilitate the provision of recommendations on research priorities to be presented for review and approval by the BCRC committee. Upon the determination of research priorities, the research program development process includes both direct program development, where researchers with expertise are directly engaged to develop proposals that address areas of priority identified by industry. Open call for proposals are also solicited on an annual basis at minimum or more frequently as required. More focused call for proposals can also be utilized to address specific issues or priorities where gaps are identified. 2012/13 BCRC Business Plan 7

9 Project Submission, Evaluation, Peer Review Process Project submission and evaluation is a three-part process: Call for proposals to address industry priorities: Proposals of suggested research are submitted based on specific and/or annual call for proposals or a direct request to a research team to develop a project in a specific area. Researchers who submit letters of intent that are clearly aligned with established industry priorities and that will, in the view of the BCRC committee and the Science Advisory Panel, make a valuable contribution to achieving the desired research outcomes are requested to develop these letters of intent into full research proposals including additional background, detailed methodology and technology transfer plans. Independent peer review of full proposals: To ensure that funding is preferentially allocated to research that will make the greatest scientific contribution to meeting the desired research outcomes of the Cluster, full proposals are sent for confidential and expert scientific review. At minimum, two reviews are solicited from scientists who are also nationally and/or internationally recognized as having current expertise in the relevant field(s). Research proposals are reviewed for scientific novelty, likelihood of success in achieving the desired research outcome, soundness of the experimental design, appropriateness of the budget, team credentials, publication and technology transfer record, and a demonstrated ability to train highly qualified personnel to position Canada as a leader in beef science. Funding decisions: The full proposals and independent peer reviews are evaluated and recommendations will be made by the Science Advisory Panel, based on the scientific merit of proposals and likelihood of them making a meaningful and valuable contribution to achieving the outcomes identified by industry stakeholders. Comprehensive research plans are then submitted to the BCRC committee for funding approval on an annual basis at a minimum, and more frequently where necessary, based on the recommendations of the Science Advisory Panel and BCRC staff. Quality Starts Here - Verified Beef Production TM In addition to sponsoring research and technology development in support of the Canadian beef industry, in 2001 the Quality Starts Here program was brought under the auspices of the BCRC. The Quality Starts Here program further supports the industry s vision to have high quality Canadian beef products recognized as the most outstanding by Canadian and world customers. Bringing it under the auspices of the BCRC provides a practical means for efficient administration and access to development and implementation resources for the program. It also provides an appropriate forum for policy development to then be taken forward to the CCA Board. The Verified Beef Production TM (VBP) program has a strong role within responsible food animal production. The VBP program is based on five elements, described as standard operating procedures in its Producer Manual (available at These elements are based on an internationally recognized approach to food safety called Hazard Analysis Critical Control Point (HACCP). Since its first technical review with the Canadian Food Inspection Agency in 2004, the procedures have been simplified into areas that include animal health management, 2012/13 BCRC Business Plan 8

10 medicated feed and water, cattle shipping, pesticide control and manure, and training and communication. Over the past years, VBP has been able to demonstrate program principles to various government departments as they consult with industry on enhancing the food safety continuum. This program shows other stakeholders that the cattle industry is a responsible sector and follows a program based in sound science. Participation in VBP workshops as of June 2011 represented 33 per cent of cow-calf production and over 70 per cent of feedlot production in Canada. Using a weighted average, the percent of production from VBP trained operations is 55 to 60 per cent of production. The program is reaching a threshold of participation to augment use of VBP within Canadian Beef Advantage market promotions. The percent of production from Registered (audited) cattle operations is 13 to 15 per cent. Moving forward, the key focus for the VBP program is to continue to increase producer participation. At the same time, program delivery still relies on government funding, which has diminished significantly and it is unclear what, if any, funding will be available in Growing Forward II which comes into effect on April 1, Industry is currently advocating for continued government support under Growing Forward II, understanding that consumers benefit from food safety and that support is required until a large enough threshold of producers is trained. Conclusion The BCRC has been challenged to implement a comprehensive research strategy which addresses multiple industry priorities while remaining fiscally prudent. The BCRC is committed to funding leading-edge research to position the Canadian beef cattle industry as a global leader in beef quality, animal health and welfare, food safety and environmental stewardship. Continued progress requires long-term research investments to ensure that our industry can respond and adapt to new issues and opportunities that arise. Industry and government funding play a major role in ensuring that both applied and long-term, high-risk discovery research continues. The BCRC has made significant strides through the Beef Cattle Industry Science Cluster to develop collaborative research initiatives between industry and government that align applied research priorities and funding to ensure that key research outcomes are achieved. Significant effort is also focused on enhancing technology transfer and knowledge dissemination to ensure more immediate uptake of research results by industry. Moving forward, continued effort and funding will be required by industry to ensure the development of comprehensive research programs aligned with industry s needs. Efforts will also need to be placed on demonstrating the value of long-term predictable research funding commitments from both government and industry to allow for more meaningful research outcomes and ensure continued commitment. 2012/13 BCRC Business Plan 9