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SASKATCHEWAN
T HE S ASKATCHEW AN
SASKATCHEWAN EGG PRODUCERS
33RD ANNUAL PRODUCER MEETING
TABLE OF CONTENTS
2001 BOARD OF DIRECTORS AND OFFICES HELD 1
2002 ELECTED BOARD OF DIRECTORS 2
AGENDA 3
MINUTES OF THE 32ND ANNUAL PRODUCER MEETING 4
INDEX TO FINANCIAL STATEMENT 10
AUDITORS REPORT
200 1 BUDGET AND COMP ARISON11
2001 LEVY TRAIL 12
PROPOSED 2002 BUDGET 13
SASKA TCHEW AN LEVY TRAIL 2002 14
CHAIRMAN'S REPORT 15
CEMA DIRECTOR REPORT 18
POULTRY EXTENSION REPORT 21
~
MANAGER'S & MARKETING REPORT ~ 25
SOIL APPLIED POULTRY MANURE --- --28
LICENSED PRODUCERS REPORTED MARKETINGS 30
<:j\~i\I)Ij\~ I)()rv1~S1rI<: S{JlPJ>~ 'I 31
J»Ft()"~<:IJ\~ (J~~(J I31[ ~~~ 32
PRODUCT DISPOSITION 33
CANADIAN ESTIMATED TABLE EGG DISAPPEARANCE 34
~~ 1[I()~~ 1[ )\]3~~ ~(]{] l1V1JP()1t 1[S 2000 35
~lJS1r~ ]?Ft()I>lJ~1r ~1vi()" ~ 36
PRELIMINARY INDUSTRIAL PRODUCT DECLARATIONS 37
~lJS1r~ }»Ft()I>lJ(;1r S~~S 2000 38
~lJ~1rFtlJ\~ J>Ft()I>lJ~1r I>I!~~~ 1rI()~~ 39
LARGE PROCESSOR PRICE 40
EGG & HEN ALLOCATION - 41
CANADA EGG & EGG PRODUCT IMPORTS 42
lJS SI1llJ~ 1lI()~ &t ()lJ1l~()()FC 43
SASAKA TCHEW AN EGG PRODUCERSBOX 1637, 1810-9TH AVENUE NORTH
REGINA, Saskatchewan. S4P 3C4TELEPHONE (306)-924-1505
FAX (306)-924-1515
EMAIL- [email protected]
1
2001 DIRECTORS
ADDRESS PHONE #&FAX~AME
(306)-297 -3556Fax (306)-297-4193
DAN ENTZ Bone Creek ColonyBox 60Gull Lake, SK. SON lAO
(306)-225-5722Fax (306)-225-5866
STANFEHR Fehr VenturesBox 450Hague, SK. SOK lXO
(306)-244-4041Fax (306)-664-6619
BERT HARMAN C\O Star Egg Co. Ltd.20 1 Avenue "D" SouthSaskatoon, Sk. S7M lP8
(306)- 731-3560Fax (306)731-2364
DA VID L. ROPER Ann River Colony
Box 570
Lumsden, SK. SOG 3CO
(306)-545-6170Fax(306)-545-4112
DON WIENS Horizon Poultry FannRR#l, Box 16ARegina, Sask. S4P 2Z1
Southeast Poultry Farn1 Ltd.Box 1812Regina, SK. S4P 3C6
(306)-543-4777Fax (306)-545-0661
TIM WIENS
ELECTIONS & APPOINTMENTS
CHAJRMAN BERT HARMANVICE CHAIR DON WIENSCEMADIRECTOR TIM WIENSCEMA ALTERNATE STAN FEHRSASKATCHEW AN POULTRY COUNCIL BERT HARMANMARKETING DON WIENSEGG QUALITY DAVE HOFER
DAN ENTZADVISORY COMMITTEE , BERT HARMANCONCILLIATION COMMITTEE BERT HARMAN
2SASKATCHEWAN EGG PRODUCERSBOX 1637, 1810-9TH AVENUE NORTH
REGINA, Saskatchewan. S4P 3C4TELEPHONE: (306)-924-1505
FAX: (306)-924-1515
2002 ELECTED BOARD OF DIRECTORS
NAME ADDRESS PHONE # & FAX
STAN FEHR(306)-225-5722
Fax(306)-225-5866
Fehr VenturesBox 450Hague, Sask. SOK lXO
BERT BARMAN C\O Star Egg Co. Ltd.20 1 Avenue "D" SouthSaskatoon, Sask. S7M IP8
(306)-244-4041Fax(306)-664-6619
DA VID HOFER (306)-731-3560Fax(306)731-2364
Arm River Colony
Box 570
Lumsden, Sask. SOG 3CO
JOSEPH MANDEL (306)-622-4417Fax(306)-662-4437
Tompkins Poultry FarmBox 309Tompkins, Sask. SON 2S0
DON WIENS Horizon Poultry FannRR#I, Box 16ARegina, Sask. S4P 2Z1
(306)545-6170Fax(306)545-4112
TIM WIENS (306)-543-4777Fax(306)545-0661
Southeast Poultry FannBox 1812Regina, Sask. S4P 3C6
3SASKATCHEWNEGGPRODUCERS33rd ANNUAL PRODUCER MEETING
TRA VELODGE HOTEL-SASKATOON, Saskatchewan
THURSDAY, MARCH 7,2002CHAIRED BY- DON WIENS
8:00 A.M. REGISTRATION & COFFEE
8:30 A.M. BUSINESS MEETINGDELTA ROOM -LOWER LEVELCOFFEE BREAKS WILL BE CALLED BY THE CHAIRMAN
AGENDA
I. WELCOME
-Call 33RD Annual Meeting To Order
2. INTRODUCTION OF OUT OF PROVINCE GUESTS
3. ADOPTION OF THE AGENDA
4. MINUTES FROM THE 32ND ANNUAL PRODUCER MEETING
s. BUSINESS ARISING FROM THE MINUTES
6. SASK. CHAIRMAN REPORT- BERT HARMAN
7. 2001 AUDITORS REPORT -RICK LeGRAND -E.J.C. DUDLEY
8. SASK. CEMA DIRECTORS REPORT -TIM WIENS
9. 2002 PROPOSED PROVINCIAL BUDGET -BERT BARMAN
10. LAURENT SOULIGNY -CEMA CHAIRMAN
II. RON O'CONNOR -VICE CHAIRMAN -NA TIONAL FARM PRODUCTS COUNCIL
12. JUDI BUNDROCK- CEMA TRADE SPECIALIST
13. U OF S POULTRY EXTENSION
14. DA YE MACKIE -MANAGER'S REPORT
1 S. NEW BUSINESS
-Appointment of Auditor For 2002
SASKATCHEWNEGGPRODUCERS33rd ANNUAL PRODUCER MEETING
TRA VELODGE HOTEL-SASKATOON, SaskatchewanTHURSDAY, MARCH 7,2002CHAIRED BY- DON WIENS
3a
16. START CLEAN STAY CLEAN TOP "10"
17. QUESTION PERIOD
18. ANNOUNCEMENTS
19. ADJOURNMENT
PRODUCER ONL y MEETING -IF REQUIRED
4
SASKATCHEWAN EGG PRODUCERS
32ND ANNUAL PRODUCRE MEETING
TRAVELODGE-SASKATOON,SASKATCHEWANTHURSDA y , MARCH 1 ST,2001
MINUTES
I. CALL TO ORDER
The 32nd Annual meeting was called to order by meeting Chairman Stan Fehr at 9:30 a.m.
2. WELCOME
Meeting Chairman Stan Fehr introduced the out of town guests.
David ClemonsWalter SiemensSandy McCurrahHarv JansenKurt SiemensEd KleinsasserGord HernerGraham Marriott
Executive Director -CEMACEMA Executive Committee and Director from B.C,National Fann Products Council- Kamloops, B.C.B.C. DirectorManitoba DirectorManitoba DirectorCEMA Auditor-Saskatchewan & ManitobaCEMA Auditor- Saskatchewan & Alberta
3. ADOPTION OF THE AGENDA
Meeting Chainnan Stan Fehr reviewed the proposed agenda.
MOTION: Moved by Dave Horer rrom Arm River Colony to accept the agenda as
presented.Seconded by: Harry WaddellCarried
4. MINUTES FROM THE 31 ST ANNUAL PRODUCER MEETING
Meeting Chairnlan Stan Fehr highlighted the minutes that were circulated in advance of the
annual meeting.
MOTION: Moved by: Bert Harman to adopt the minutes as presented.Seconded by: Tim Wiens
Carried
s. BUSINESS ARISING FROM THE MINUTES
-NONE-
s
6. SASKATCHEWAN CHAIRMAN REPORT BERT HARMAN
The year 2000 was very good for the egg industry in Canada. There is no doubt a healthymarketing Board system in Canada has contributed to the profitable year.
There is no doubt our industry is changing. The breaking industry wants Canadianproduction to fill their growing need for processed eggs.
Manitoba and Ontario have already placed "Eggs For Processing" layers and are planningto place more.
Saskatchewan's request for 200,000 EFP layers was allocated at the November meeting.CEMA accepted the recommendation of the Quota Advisory Committee (QAC). This did
little for future increases in table quota.The Provincial Government has taken an interest in the Egg industry with the formation
of the Egg Industry Task Force. Jim Findlay was employed for a term position.In November a producer flock tested positive for IL T .The Egg Board and Provincial
Government recommended having the flock eradicated, in an effort to prevent the spread of IL Tto other producers flocks.
This is the second outbreak in the last five years. With the increasing flock size theProvincial Government wants to get out of paying compensation.
WTO talks continuing. Rory McAlpine ( Executive Director for International Policy) gave assurance of theFederal Government commitment to sustaining supply management system.
Updating the Federal Provincial Agreement continues. Saskatchewan is taking thisopportunity to make itself heard. For the FP A to be approved it requires all signatories to sign.
EGG PRO D U CER OF THE YEAR- A first in 200 1 will be presented to the winner atthe annual banquet on Thursday night.
7. 2000 AUDITORS REPORT -RICK LEGRAND -E.J.C. DUDLEY & CO.
Meeting Chainnan Stan Fehr called on Rick LeGrand ofE.J.C. Dudley & Co. to presentthe Audited Financial Statements.
MOTION: Moved by Harry WaddeU to accept E.J.C. Dudley & Co. 200 Audited Financial--
8. CEMA DIRECTORS REPORT -TIM WIENS
Provincialism is the greatest threat to the National System. It's growth impairing CEMAvision.
The QAC recommendation did little to foster growth in Saskatchewan, in factSaskatchewan has lost market share. This is not acceptable to the Saskatchewan Board nor ourProvincial Government.
On a different note- CEMA marketing will be promoting egg use in recipe books throughJanuary and February.
The costs or production survey was completed this year, the next step is to confirn1 thedata collected.
~tatements as presented.Seconded by: Cliff ColbornCarried
6The Federal Provincial Agreement would be the next policy item that needs to beaddressed. As a net contributor to the National system Saskatchewan may want to adopt pastpolicies of other Provinces.
In the new FP A recognition must be given to comparative advantage. Saskatchewan canproduce more eggs efficiently than any other province in Canada.
Saskatchewan has always shown a desire to work with other Provinces for tl.te Nationalgood. However it will depend on the Central Provinces to show they want a National system forthe good of all.
9. 2001 PROPOSED PROVINCIAL BUDGET- Bert Harman
Chainnan of the board Bert Hannan, presented the 2001 proposed Provincial budget-Levy increase effective Aprill st 2001
-Legal fees increase -Eggs For Processing-Federal Provincial Agreement-Salaries- increase to hire a technical person to fill in where Jim Findlay left
off.
MOTION: Chairman Bert Barman moved acceptance of the 2001 budget.Seconded by: Darcy FriesenCarried
10. DA VID CLEMONS -CEMA EXECUTIVE DIRECTOR
David Clemons joined CEMA in March 2000 following a career in associationmanagement, government and marketing.
David complimented Felix Destrijker and the CEMA staff.The increased demand for the Eggs For Processing is causing friction between the
provinces. It is also forcing CEMA to look at new methods to allocate production Quota.CEMA also wants to have a signed contract that would be acceptable by the breaking
industry and CEMA.As the EFP continues to grow, provincial programs must remain WTO compatible.Food safety is a consumer concern. CEMA recognizes the problem and has in place a
HACCP based start clean stay clean program.Research is important to our industry. CEMA has entered into discussions with other
poultry agencies to develop a National Council for Poultry Research.Financially CEMA ended the year on solid ground and are looking for a good year in
2001
II. SANDY MCCURRAH- NATIONAL FARM PRODUCTS COUNCIL
Sandy extended a welcome on behalf of National Fann Products Council. An outline ofcouncil makeup and responsibility was expanded on. Of the nine Board members, five are activeproducers. Sandy is a CTMA member. All Council members are supportive of supplymanagement and look foI"\vard to working with CEMA in 200 I.
7
12. U OF S POULTRY EXTENSION
Funding for the Saskatchewan Poultry Extension services is shared by the fourSaskatchewan Poultry Boards and Lilydale coop.
Dr. Wanjala Lusimbo a poultry pathologist hired to replace Dr. Riddell, passed away inAugust.
The results of the SE program were reviewed. In 2000 six strains of salmonella werereported. Salmonella Mbandaka is the most common type found in Saskatchewan. Flockstested positive have dropped from 39 to 8.
Several farms experienced poor shell quality. Extension service recommended topdressing oyster shell on the last feeding combined with vitamin d3.
The wheat screening feed trial was canceled at week 19 because of a disease condition inthe test flock.
13. MANAGERS REPORT- DA YE MACKIE
A new up to date computer system was purchased to replace our older model when themotherboard failed.
National Farm Products Council approved the CEMA Quota Order to allocate 810,274domestic Quota units nationally.
Saskatchewan share of the allocation was 11,357 Quota units. The allocation worked tothe provinces benefit on utilization.
Industrial product declarations ended up at 238,864 boxes, this is 7520 boxes below 1999declaration.
In response to Ontario's request- Eggs shipped from a Province to fill table request willbe credited to that provinces table disappearance.
CARDS approved funding on a research project title ..Soil Applied Poultry Manure".Third year funding would be provided by
P AMI -Prairie Agriculture Machine InstituteTAD -Technology Adaptation and DemonstrationSEP -Saskatchewan Egg Producers
PROMOTION
Crack Open A Meal- Promoting the Get Crackin CookbookBillboard Campaign -" Eggs For The Festive Season"
Canadian Western Agribition -Agri-Ed Hands on experience grades 1-8
-Egg demos in the food fair
MOTION: Moved by Fritz Mandel to accept all reports.Seconded by: Philip EntzCarried
814. NEW BUSINESS
16.1- Appointment of Auditor 2001The Board ofDirectors recommended the firm ofE.J.C. Dudley & Co. as
Auditors for 2001.
MOTION: Moved by CliffColborn to accept E.J.C. Dudley & Co. as Auditors for theSaskatche\van Egg Producers for 2001.
Seconded by: Darcy FriesenCarried
1 s. ST ART CLEAN ST AY CLEAN
Graham Marroitt CEMA Auditor spoke on the HACCP start clean stay clean program.Comparisons of situations experienced in Alberta and Saskatchewan were discussed.
16. DIRECTOR STAND DOWN
Chairman Bert Harman called up Cliff Colbom in recognition of his two-year term ofservice on the Board.
17. ADJOURNMENT
Adjourned moved by Bert Harman.Seconded by: Matt KleinsasserCarried
9SASKATCHEWAN EGG PRODUCERS
PRODUCER MEETINGS MARCH 1\2001
TRAVELODGEHOTEL
SASKA TOON IN DELTA ROOM
EGGS FOR PROCESSING
Saskatchewan received an allocation of 200,000 EFP permit.
Eggs For Processing, to fill Canadian Breaker demand with Canadian product. Producerparticipation is voluntary. Pricing ofEFP eggs will be a blend of the Urner Barry and Feed Baseprice less freight.
Security is needed to make sure EFP eggs do not find their way into the table market.EFP egg producers must average a minimum of 23.7 dozen eggs per hen over 52 weeks. Pennitsare issued for 52 weeks and must be renewed when new birds are placed.
Loss of market- should a Breaker lose market share, EFP layers would have to be reducedto make up the difference.
MANITOBA: Has run two trial programs under the Grow For Export. They are in the processof placing 200,000 EFP pennits now.
The Saunders project is outside the National program. Saunders went to the ManitobaGovernment and got Governments support to put 500,000 EFP layers. Saunders deals directlywith Inovatech.
Saskatchewan's allocation to supply lnovatech was 70,000 in the first year and theremaining 130,000 in the second year.
How do we get Saskatchewan producers involved?
The discussions that followed brought forward the following.
MOTION: Moved by Paul Wipf( Baildon Colony) that a registered letter be sent out toall producers including colony leaders explaining the Eggs For Processing venture.Allowing a time span of six weeks to AprillS\200l.
Seconded by Darcy FreisenCarried
Adjournment Moved by Tim WiensSeconded by: Stan Fehr
Carried
10
SASKATCHEWAN EGG
PRODUCERS
Financial Statements
December 31, 2001
INDEX
Page 1 Auditors' Report
Page 2 Balance Sheet
Page 3 Statement of Operations and Surplus
Page 4 Statement of Cash Flows
Page 5-6 Notes to the Financial Statements
Page 7 Schedule of Expenses
Page 8 Additional Information
---00 --0--
.I1; 1)1 JI)lrV ,", (';1 \
--IPage 1
AUDITORS' REPORT
To The Directors ofSaskatchewan Egg Producers
We have audited the balance sheet of SASKATCHEWAN EGG PRODUCERS as at December31, 2001 and the statements of operations and surplus and cash flows for the year then ended. Thesefinancial statements are the responsibility of the board's management. Our responsibility is to expressan opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.Those standards require that we plan and perform an audit to obtain reasonable assurance whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financialposition of the board as at December 31, 2001, and the results of its operations and its cash flows forthe year then ended in accordance with Canadian generally accepted accounting principles.
Lr/£ (2~4 ~ ,
E.J.C. Dudley & Co.Chartered Accountants
Regina, SaskatchewanJanuary 28, 2002
I: \}\JI}lry ~: 1:(
Auditors' Report
To: The Directors of Saskatchewan Egg Producers
We have made an examination to determine whether the Saskatchewan Egg Producerscomplied with the provisions of the following legislative and related authorities pertaining to its financialreporting safeguarding of assets, spending, revenue-raising, borrowing and investing activities duringthe year ended December 31, 2001.
The Natural Products Marketing ActSaskatchewan Commercial Egg Producers Marketing Plan
Our examination was made in accordance with Canadian generally accepted auditingstandards, and accordingly included such tests and other procedures as we considered necessary inthe circumstances.
In our opinion, Saskatchewan Egg Producers has complied, in all significant respects, with theprovisions of the aforementioned legislative and related authorities during the year ended December31, 2001.
£ ~ (;"' p u L.t.", f- c:::-
E.J.C. Dudley & Co.Chartered Accountants
Regina, SaskatchewanJanuary 28, 2002
Page 2
SASKA TCHEW AN EGG PRODUCERSBalance Sheet
As at December 31.2001
ASSETS
..gQQQ.
$ 591,258
950,000202,983
161410176,825
0
30,6812,721
25.411
119961289
gQQ1$ 119,951
972,500200,415
8,030248,089377,321
90,3162,270
29.084
2,047,976
CURRENT ASSETSCash and bankInvestments -note 3Accounts receivable -Producers -note 2GST receivableAccounts receivable -CEMAAccounts receivable -EFPAccounts receivable -otherPrepaid expensesAccrued interest receivable -note 3
Total Current Assets
CAPITAL ASSETS -note 4Total Assets
87.042$2.135.01 R
5.260$2.001 .549
UABILITIES AND SURPLUSCURRENT UABlLITIES
Accounts payable and accrued liabilitiesCanadian Egg Marketing Agency -Levies
T otat Uabilities
$ 269,429
199.014
468,443
$ 183,653
248.240
431,893
1.666.575
$2,135,0.18.
1.569.656
$2,001,5:49
SURPLUS -page 3Total Uabilities and Surplus
See Accompanying Notes
E.J.C. OUOt.EY 1- GO.
--,I
Page 3
SASKATCHEWAN EGG PRODUCERS
Statement of Operations and Surplus
For the year ended December 31. 2001
IndustrialProduct
RemovalProQram
Eggs for
ProcessingProQram
GeneralOperations
Total
.?Q.Q1
Total
~
$387.124 $ 304.446 $ 0 $ 691.57074.799 0 0 74.79926.734 0 0 26.734
118 0 0 1180 3,982,807 0 3,982.8070 0 1.100.488 1.100.4880 0 2.509 2.509
488.775 4.287.253 1.102.997 5.879.025
$ 637.357
82.620
18.772250
4.196.8660
0
REVENUEProducers levyInterestOver quota penaltiesLicensesProceeds from CEMAEFP collectionsTray usage and net freight
Total Revenue 4.935.865
62,919109,657172,53737 ,50125,414
106,45965, 17020,269
0000
599.926( 111.151)
52,23784,853
147,07544,900
0349,184
47,44119,261
4, 196,8666,678
72,2250
00000000000
1.091.4671.091.467
11.530
EXPENSESAdministration -page 7Board of Directors -page 7Personnel -page 7PromotionFowl removal programProvincial share of levyResearch and studies -page 7Rent, janitorial, insurance & utilities
Purchase of product
HandlingProvincial removalEFP payments
Total ExpensesExcess revenue (expenses)
1 ,654,511
$1.569.6561.569.656
$1.666.575
SURPLUS
Beginning of year
End of year
See Accompanying Notes
1.J(:IIIII11_I:Y~c:(
00000000
3,982,8077,200
100,7060
4.090.713196.540
62,919109,657172,537
37 ,50125,414
106,45965, 17020,269
3,982,8077,200
100,7061.091.4675.782.106
96,919
--
5.020.720
( 84,855)
Page 4
SASKATCHEWAN EGG PRODUCERS
Statement of Cash Flows
For the year ended December 31. 2001
6QQ1
$5.306,954
71, 126
( 5.744.053)
( 365.973)
gQQQ
$4,716,148
82,398
<_4.797.545)
1.001
CASH FLOWS FROM (FOR) OPERATING ACTIVITIESCash receipts from members and other customersCash receipts from interestCash payments to members, suppliers and employees
Cash Flows From (For) Operating Activities
( 82,834 )( 22.500)( 105.334)
( 4,420)0
( 4.420)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIESPurchase of capital assetsIncrease to investments
Cash Flows From (For) Investing Activities
Net decrease in cash ( 471,307) ( 3,419)
CASH POSITION -Beginning of the year-End of year
591.258
$ 119,951594.677
$ 591,258
See Accompanying Notes
1:.1 (:.I)IJnlEY ." GO.
Page 5
SASKATCHEWAN EGG PRODUCERS
Notes to the Rnancial Statements
December 31. 2001
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accrual basis of accounting is used in determining revenues and expenses.
MEASUREMENT UNCERTAINTYThe amounts recorded for the allowance for doubtful accounts and estimated useful life of
capital assets are based on management's best estimate. These estimates are reviewedperiodically and as adjustments become necessary they are reported in earnings in the period inwhich they become known. By their nature, estimates are subject to measurement uncertaintyand the effect on the financial statements of any changes in estimate could be significant.
ACCOUNTING FOR INCOME FROM LEVIES AND LICENSES FEES
The Board is empowered under enabling legislation (The Agri-Food Act) to collect levies andlicense fees on all eggs marketed in Saskatchewan.
The Board required producers with flocks of 300 laying hens or more to be registered by theBoard.
The Board has instituted a unified levy system which bases the levy on expected number ofdozen eggs which will be produced in a fifty-three week (53) period.
gQQ1$4,746,914
.?QQQ
$3,977,930T otallevies charged to all producers
Portion of levy attributed to CEMA based upon actualreported marketings of eggs 4.055.344 3.340.573
Amount retained by the Board 637 ,357691,570
Portion of levy allocated to Board Administration 387.124 382.956
Remainder of levy allocated to Industrial Product Removal $ 304,446 $ 254,401
2. ACCOUNTS RECEIVABLE -PRODUCERSAccounts receivable from producers is made up of the following:
gQ.QQ
$ 152,167
5,388
34,77610.652
$ 202,983
gQQ1$ 130,267
353
60,676
9.119
$ 200,415
Unified LeviesInterestOver-Quota PenaltiesGST on levies
0- _0 1-.11: I)tllllry.';t;c)
Page 6
SASKATCHEWAN EGG PRODUCERS
Notes to the Financial Statements
December 31. 2001
INVESTMENTS3.AccruedInterest.QQ§!
$472,500 $ 24,564Bank of Montreal
Guaranteed Investment CertificateInterest Rate: 5.5%Maturity Date: January 20, 2003
500.000 4.520Guaranteed Investment CertificateInterest Rate: 6%Maturity Date: November 05, 2002
§972,500 $ 29,084
CAPIT AL ASSETS4.
The Board records capital assets at cost less accumulated amortization, with expenses forrepairs and maintenance charged to operations as incurred.
Amortization is provided using the diminishing balance method at a rate of 20% for furnitureand equipment, and at a straight line rate of 1110 for egg trays (to commence in 2002).
Capital assets and related accumulated amortization as at December 31 are as follows:
2000
Net Book
~
$ 0
5.260
$ 5.260
2001
Net Book
~
Accumulated
Amortization
$ 0
40.212
$ 40,212
.Q9.§!$ 82,834
44.420$127,254
$ 82,8344.208
$ 87,042
Egg traysFurniture and Equipment
5. INCOME TAXESThe Board is an agricultural organization from which no part of the income is payable too or
is otherwise available for the personal benefit of any member 0 therefore it is exempt from
income tax.
6. CONTINGENT LIABILITIESa) The Board is contingently liable for the amount of $47 ,600 in regard to a documentary letterof credit issued for the Canadian Egg Marketing Agency. This contingent liability is secured byassignment of producers accounts receivable.
b) The Board currently remits levies to the Canadian Egg Marketing Agency using acalculation based on egg marketings. The Agency prefers such remittances to be made using acalculation based on bird issuance. If the Board had remitted levies based on issuance ratherthan marketings, the payments to the Agency would have been approximately $167 ,000 higherover the years 2000 and 2001. While the Board could eventually be required to pay Some or allof these shortfalls to the Agency, the amount and timing of any such future payment is not yetdeterminable and So no liability has been accrued at this time.
.1 ( : ()tJI)1 ry ,'; t::()
Page 7
SASKATCHEWAN EGG PRODUCERSSchedule of Expenses
For the year ended December 31. 2001
gQQ1$ 6,466
1,05248
489
3,9722,0009,590
13,9702,2021,471
850
5,08215.727
$ 62,919
£QQQ
5,800
1,313156
885
3,461
2,000
5,157
14,647
9,100
3,7981, 163
4,7570
$Administrative Expenses
Audit and accounting fees.Amortization
Bank chargesComputer fees and suppliesEquipment rental, service contract
MembershipLegalMeetingsPostage and expressStationery and copier suppliesSubscriptions and literatureTelephone and fax
Strategic planningTotal Administration $ 52,237
$ 71,042
38.615
$109,657
$ 53,19331.660
$ 84,853
Board of Directors and ExpensesTravel and sustenancePer Diem allowances
Total Board of Directors
Personnel ExpensesSalaries and benefitsTravel -staff
-managerTotal Personnel
$128,820
19,951
23.766
$172,537
$110,09618,97418.005
$147,075
$ 50,514
0
11,697
2.959
$ 65,170
34,5108,2002,5002.231
$ 47,441
Research and Studies ExpensesPoultry extension programOzone researchResearch & studies U of SSE survey
Total Research and Studies
r .1 ,: I)IJI )! I-Y .". I.-:()
Page 8
SASKATCHEWAN EGG PRODUCERSAdditional Information
For the vear ended December 31. 2001
~
$ 19,078
9,421
6,678
2,671
2,359
2,346
2,200
2,141
0
0
4.683
51,577
14.076
.$ 37 ,501
.?QQQ
$ 21,280
0
712
3,566
12,089
1,916
4,550
3,086
11,619
7,800
4.862
71,480
26.580
$ 44,900
PromotionTapp CommunicationsUPS Logistics GroupPapp signsStar EggLivingston Dist.Regina Exhibition ParkFACSSaum EnterprisesCTVCBCPayees (20)Total paidLess recoveries
Net Expense
.?QQ1$ 5,325
4,8750
9,110
5,100
5,355
1,275
7.575
$ 38,615
gQQQ$ 4,575
4,2751,5754,6351,6504,3004,5006.150
$ 31,660
Per Diem AllowancesDavid L. HoferDaniel EntzHarry WaddellBert HarmanDon WiensTim WiensCliff ColbornStan Fehr
Total Expenses
Per diems allowances are paid to directors on a monthly basis for being directors, attendingmeetings and director travel. The per diems are paid in the following amount:
$150 per month$150 per meeting$75 per day of travel$175 per month$175 per meeting
Director per diemMeeting per diemTravel per diemChairman per diemChairman meeting per diem
1.11;IJIJlll.1Y.".(:()
l
Auditors' Report
To: The Directors of Saskatchewan Egg Producers
We have examined the system of internal control of Saskatchewan Egg Producers in effect asat December 31, 2001. We did not examine certain aspects of internal control concerning theeffectiveness, economy, and efficiency of certain management decision making processes. The criteriafor the examination of this system of internal control consisted of the control environment and controlsystems described in the Canadian Institute of Chartered Accountants Handbook.
Our examination was conducted in accordance with Canadian generally accepted auditingstandards. Those standards require that we plan and perform an examination to obtain reasonableassurance whether the system of internal control established and maintained by management issufficient to meet the control objectives referred to below. Such an examination includes obtaining anunderstanding of the system of internal control and performing tests of controls to determine whetherthe internal controls exist and operate effectively.
The management of Saskatchewan Egg Producers is responsible for establishing andmaintaining a system of internal control to achieve the control objectives notes in a) to d) below. Infulfilling this responsibility, estimates and judgement by management are required to assess theexpected benefits and related costs of control procedures. Our responsibility is to determine that thereis a system of internal control in effect which provides management with reasonable, but not absolute,assurance that:
a) The accounts are faithfully and properly kept to permit the preparation of financial statements inaccordance with Canadian generally accepted accounting principles.
b) All producer money is fully accounted for and properly disposed of and the rules and proceduresapplied are sufficient to ensure an effective check on assessment, collection and properallocation of producer money.
Transactions are executed in accordance with management's authorization, and producermoney expended is applied to the purpose for which it was intended by legislation; and
c)
d) essential records are maintained and the rules and procedures applied are sufficient tosafeguard and control producer money against loss from unauthorized use or disposition.
i
~I .1 (
-2-
Because of the inherent limitation in any system of internal control, errors or fraud mayoccurand not be detected. Also, projection of any evaluation of the system on internal control to futureperiods is subject to the risk that procedures may become inadequate because of changes inconditions, or that the degree of compliance with the procedures may deteriorate.
In our opinion, based upon the above criteria, the system of internal control of SaskatchewanEgg Producers in effect as at December 31' 2001, taken as a whole, was sufficient to meet theobjectives stated as above insofar as those objectives pertain to the prevention or detection of errors orfraud in amounts that would be material in relation to Saskatchewan Egg Producers.
/ ;1 t:"' v &-"- ~ !1 c:
E.J.C. Dudley & Co.Chartered Accountants
Regina, SaskatchewanJanuary 28, 2002
\III!)lry.-;c.:()
SASKATCHEWAN EGG PRODUCERS11
REVENUE 2001 BUDGET PROJECTED 2001
$$$$$$$
391,941.002,000.00
160.0026,200.002,000.00
299,945.0051,250.00
$$$$$$$
387,124.0026,735.00
150.00
24,000.001,000.00
330,224.0075.050.00
Provincial Admin LevyOver Quota PenaltyLicence FeeBank InterestProducer InterestProducer LevyInvestment Income
TOTAL REVENUE $ 773,496.00 $ 844,283.00
EXPENDITURES
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
7.200.00100.000.00107.783.00
6.400.00200.00
4.000.003.500.002.000.00
20.000.002,000.00
15,000.00500.00
9.500.001.500.004.000.006.000.00
48.000.0032.000.00
150.000.0020.000.00
3,500.0015.000.0045.000.0036.000.00
5.500.002.300.00
11.000.001.750.00
30.000.002,400.00
35,000.0020.000.00
2.000.00
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
6.000.00115.000.00
96.970.006.500.00
48.00
1.200.002,500.00
838.00
15,600.002,000.00
12.000.0050.00
6,600.002.700.001.900.004.200.00
65,000.0031.000.00
135.000.0020.000.00
4,000.0019.000.0032,000.0051.000.00
5,600.002.300.00
11.000.00900.00
25.400.002,400.00
12,000.0016.000.004.000.00
53.000.0011.500.00
Storage & HandlingProvincial RemovalProvincial ContributionAuditBank Charges
Computer ExpenseCopier & Supplies
SubscriptionsLegalFacs Membership
Meeting ExpenseMiscellaneous
PostageService ContractOffice SuppliesPhone & FaxDirectors TravelDirectors Per DiemSalary & BenefitsStaff TravelManager In Province ExpenseManager Out Province ExpenseAdvertising & PromotionExtension ServicesInsuranceJanitorialOffice RentUtilitiesEarly Fowl RemovalSe TestingResearch & Studies
Strategic PlanningField Spreading ManureEFP TraysEFP DividersEFP Pallets
TOT AL EXPENDITURES $ 749,033.00 $ 775,206.00
12SASKATCHEWAN
LEVY TRAIL FOR 2001
STARTING WEEK#14\2001
24.5 c
SASKATCHEWAN
( 0.55 c)
CEMA LEVY
21.5 c
SASKATCHEWAN LEVY3.55 c
IP
REMOVAL* .55 c
PIF
CONSUMER
19.0 c
ADMIN
2.0 c
AD MI N
2.5 c
ADMIN
* 1.0 c
CEMA Levy is allocated to two funds: the Adminstrative Fund, which covers the costs of
Adminstration and Marketing; and the Pooled Income Fund (PIF) which provides for
Interprovincial movement and sales of Indusrial Product.Provincial Levy is allocated to two funds: the Administration Fund, which coverssaskatchewan's administration and promotion; and the Indusrtail Products Removal Fund, which
provides additional funds to remove Industrial Product in the Province that is not covered
Nationally.
* Not recovered in the COP Formula.
SASKATCHEWAN EGG PRODUCERS 2002 PROPOSED BUDGET13
BUDGET2002REVENUE
PROV. ADMIN. LEVYOVER QUOTA PENAL TVLICENSE FEEBANK INTERESTPRODUCER INTERESTPRODUCER LEVYINVESTMENT INCOMEEFP -FREIGHT
$$$$$$$$
401,493.004,000.00
140.0025,000.00
1,500.00304,161.0050,000.0097,000.00
~
$ 883,294.00TOTAL REVENUE
EXPENDITURES
$ 120,000.00$ 7,200.00$ 161.250.00$ 6,900.00$ 50.00$ 1,400.00$ 3.600.00$ 900.00$ 15.000.00$ 2.000.00$ 15,000.00$ 500.00$ 7,500.00$ 4,000.00$ 3,000.00$ 4,500.00$ 58.000.00$ 33,000.00$ 150,000.00$ 19,000.00$ 4,500.00$ 19,000.00$ 55,000.00$ 51,000.00$ 6,800.00$ 2,300.00$ 12.800.00$ 1.200.00$ 30,000.00$ 2.600.00$ 35,000.00$ 30.000.00$ 4,000.00$ 30.000.00$ -
$ 10,178.00$ 907,178.00
EFP- FREIGHT EXPENSESTORAGE & HANDliNGPROVINCIAL REMOVALAUDITBANK CHARGESCOMPUTER EXPENSECOPIER & SUPPliESSUBSCRIPTIONSLEGALFAC-S MEMBERSHIPMEETING EXPENSEMISCELLANEOUSPOSTAGESERVICE CONTRACTOFFICE SUPPliESTELEPHONE & FAXDIRECTOR TRAVELPER DIEMSALARIES & BENEFITSSTAFF TRAVELMANAGER'S TRAVEL -IN PROV
-OUT OF PROVINCEADVERTISING & PROMOEXTENSION SERVICESINSURANCEJANITORIAL SERVICESOFFICE RENTUTIliTIESEARLY FOWL REMOVALSe TESTINGRESEARCH & STUDIESSTRATEGIC PLANNING EXPENSEFIELD SPREADING MANUREEFP-TRAYSEFP -DIVIDERSEFP-PALLETS
TOTAL EXPENSE:
SASKATCHEWAN EGG PRODUCERS
LEVY TRAIL FOR 2002
STARTING WEEK# 9 MARCH 2\2002
14
24.5 c
CEMA LEVY
21.0 c
SASKAl TCHEWAN LEVY3.5 c
I PIFl
PRODUCER
je- 1.0 c
PIF
CONSUMER
18.0 c
ADMIN3.0 c
ADMIN
2.0 c
PRODUCERI ~ .5 c I
CEMA Levy is allocated to two funds: the Adminstrative Fund, which covers the costs ofAdminstration and Marketing; and the Pooled Income Fund (PIF) which provides forInterprovincial movement and sales of Indusrial Product.Provincial Levy is allocated to two funds: the Administration Fund, which coversSaskatchewan's administration and promotion; and the Pooled Income Fund, whichprovides additional funds to remove Industrial Product in the Province that is not covered
Nationally.
* Not recovered in the COP Formula
15
Chairman's Report
We have completed another good year for the egg industry in Saskatchewan.
The changes to our Provincial industry have made it an interesting year .Theadvent of EFP Quota for our province has brought about the most change both on thefarm and at the Board office. One of the many changes for those involved in EFPproduction is that your egg cheque now comes from the Egg Board rather than the eggstation. Another drastic change for those in EFP production is that some of your eggsreceive a much lower price. We need to be thankful that World price does not dictate thetable market price for our product. Another change of course is that eggs destined forEFP are going directly from dedicated barns to the egg processing plant rather than to anegg grading station. All of these changes in the opinion of the current Board of Directorsare for the good of continued supply management and for the good of the continuedhealth of the egg industry in Saskatchewan.
In the future, the egg processor that we supply will likely be asking for morechanges from us in the way we supply them. We have already been notified that they willbe requesting from time to time, to ship eggs with yolk color darker than we currentlyproduce. The board has notified the processor that we want to co-operate with their needsin this area as required.
During this year the process of renewing the Federal Provincial Agreement hasbegun. Several meetings have been held to begin the process. This agreement willprovide the legal format for the rules guiding the operation for CEMA into the future.Tim Wiens has been Saskatchewan's representative at the table during this process. Wehave been working closely with representatives from Saskatchewan Agriculture and Foodto find the correct strategy to further Saskatchewan's position within the CanadianSupply managed system and to ensure the future of our industry. Enactment of this FP Aagreement cannot take place without all parties being on side with it. We are thereforepushing for a better deal for Saskatchewan here as far as future quota allocations areconcerned for our province. I need to report to you that in order to make the point ofSaskatchewan's resolve in these negotiations we have chosen to not take part in them onseveral occasions.
The year 2001 has seen Saskatchewan enter into a dispute with CEMA ournational counterpart. This dispute started with the issuance of 300,000 birds of additionalEFP quota in the country to central Canada. We challenged this decision of the CEMAboard to NFPC in July. The reason for the challenge to this decision is the fact thatSaskatchewan is really being disadvantaged, in our view because of our lack of influencewithin the system, in the allocation of increased quota within the country. On the tablequota side, under the QAC agreement, even though we have the ability to producecompetitively the increases in quota are tied to a formula related to population. With ourpopulation remaining stagnant we loose out there significantly over time. On the EFPside, quota allocations are given out according to contracts secured with the breaker.
16
Because we do not have a breaking industry in our province, we need to secure a morefavorable method of allocation or we could be meeting here 10 years from now with veryinsignificant growth to our industry. Both our board and our government counterparts arein agreement that this is unsatisfactory for Saskatchewan. Therefore we challenged theCEMA decision in July.
As reported to you previously, NFPC instructed CEMA to meet with us and workout a solution to our complaint. That meeting was held in October when the CEMABoard came to Regina to hear presentations from Provincial Government representativesand from the Provincial Board. We were told from this meeting that a committee wouldbe formed at CEMA to deal with our complaint. We withdrew from FP A negotiations toforce the issue along. We were brought back to the FP A table by a promise that CEMAwould look at our request for more Quota for our province if we again involved ourselves with the FP A process. Resulting from these events, we were invited to meet againwith CEMA at the In Camera portion of the February CEMA meeting. Again Sask AGand Food accompanied us to help in what we expected would be negotiations. We weredisappointed however with the fact it was obvious to us that CEMA had not discussedour concerns since meeting with them in October. No progress was made. Therefore wehave withdrawn again from the FP A negotiations.
You need to know what it is that we are trying to secure in this for you, TheSaskatchewan Egg Producers. We are requesting a one time special consideration on thetable quota side for an allocation amounting to about 109,000. This would bring us backto our original share of the Canadian Allocation of approximately 4.76%. Our share bythe way has fallen to 4.21% of the Canadian allocation. On the EFP side, we are askingfor a 500,000 EFP allocation. Along with a methodology for future allocations to beshared equally to those provinces wanting to produce for EFP production. We will befighting aggressively on your behalf during the coming year to secure this for our
provInCe.
I report to you that about two years ago CEMA made a change in the way thatthey collect their levies. They changed from collecting on eggs marketed to collecting ona unified per bird basis. We made the decision to continue to remit levies to CEMA onthe basis of marketings. Therefore CEMA claims that we owe them the amount of$167,000. This is shown in our financial statement and will be disputed by us. Thecurrent FP A does not to my knowledge use any other method of levy remittance than thatof remittance by marketings. Newfoundland is the only other province remitting toCEMA levies by marketings.
I also report that there is a move by two smaller producers in the province to haveapproached our Provincial Council lobbying to have the minimum exemption forunregulated birds in Saskatchewan increased from the 300 level it is at now. We arekeeping a close eye on this of course because of the negative affect this would have to theregistered production in the province. Any increase there, would require decreases to theregulated layer numbers.
17
On a positive note, this year is Saskatchewan's turn to host the annual CEMA summermeeting. We expect to have up to 200 producers and their wives from across the countrycome to this meeting. We have decided to hold it at the Delta Bessborough Hotel inSaskatoon. I want to, at this time encourage as many of you as possible to get involved inthis event to help make it a successful showcase of our province.
The board is undertaking several initiatives for the coming year. Firstly, we havecommissioned Myers Norris Penny to do a Feasibility study taking a look at ways toattract industry and more markets for Saskatchewan eggs. This will be completed beforethe middle of 2002 and will be used to help us in decision making for the future directionof our industry.
Secondly, as you have all been notified, we are searching for a person to providetransition into leadership on our staff in the board office. Myers Norris Penny has beenhired to help us with this selection process. We expect to have the new person on staffbefore mid 2002.
Thirdly, we will be meeting with the Minister of Agriculture to bring him up todate on the issues our industry is currently facing, nationally as well as provincially. Theone issue locally that we will be trying to key in on is the whole area of manuremanagement on ILO's and the process involved in getting permits to build ILO's. Wewill lobby on your behalf to endeavor to make it easier for us to operate our livestockoperations. It is my opinion that the government needs to take an aggressive stand on theside of livestock operators with regard to placement of these and the operation of them.
Finally, a motion was passed at our January Board Meeting dealing with the standdown of directors, after serving a 6 year term on the board. The board is concerned aboutthe number of producers reducing in the province with only 67 left according to theDecember 31,2001 producer list. Fifty one of those are Colonies and 16 non Colonyproduction units. The concern is for the future that all six seats on the board will be ableto be filled.
Finally, it has been my privilege to work another year with Dave Mackie and hisstaff at the Board and I look forward to a bright future for our industry here inSaskatchewan.
Respectfully Submitted
Bert HarmanChairman
18
SASKATCHEWAN EGG PRODUCERS
2001 REPORT BY TIM WIENS
DIRECTOR TO THE CANADIAN EGG MARKETING AGENCY
The year 2001 was been a very challenging one for me as Director of theCanadian Egg Marketing Agency. Saskatchewan signatories have brought forwardtheir view to CEMA that quota allocations need to be reformed so the needs of ourproducers can be met and new agricultural economic growth found for our province.It has been my job to ensure that our view is heard and acted upon at CEMA whileconsidering the needs of producers in the rest of the country. I must say this hasn'tbeen easy.
Federal-Provincial Aareement
Work on renewing the FPA began in 2001. There is no doubt that theFederal- Provincial Agreement by which CEMA operates needs to be renewed. It isin the discussions on FPA renewal, as well as around the CEMA board of directorstable, that I emphasize the need to ensure Saskatchewan is treated fairly in allmatters, especially quota allocations.
CEMA is sincere in its desire to have Saskatchewan participate fully in thenational egg marketing system and CEMA has listened to Saskatchewan's positioncarefully. I encourage all parties to remain open minded and appreciate that FPArenewal provides us with a good opportunity to find new ways of doing businessrather than entrench old ones.
I have no doubt that quota allocations will remain one of the most difficultissues to be dealt with in these discussions in 2002. But if good will and open-mindedness are demonstrated by all signatories, then we will be able to get a dealthat works for all signatories, including Saskatchewan's.
Cost of Production
The Cost of Production study was completed and the various costs updatedaccording to our Formula. The COP Formula remains a fundamental part of oursupply management system. Growing safe, nutritious food in stable quantities isextremely important work and we deserve to have our costs returned to us overtime.
19
Industrial Products
An Agency goal is to achieve long-term arrangements acceptable to bothproducers and breakers so we don't have to negotiate all the terms of our processorcontracts every year. We have started, and will continue in 2002, an in-depth studyof the processing market and pricing. The study will give us the information neededto develop a framework upon which future contracts can be negotiated for manyyears to come.
The Pooled Income Fund is in a healthy position at year's end, reducingpressure on our levy requirements for 2002. The industrial products portion of ourlevy has dropped a full cent a dozen while the administration portion increased half acent.
MarketinQ and Promotions
The Agency's marketing programs are as effective as ever with shell eggdisappearance remaining strong and national retail sales being brisk. Marketresearch has told us that consumers remembered our 2001 televisionadvertisements and the messages being delivered by them. Our 2002 series,launched in early February , continues the omelette theme begun in 2001.
Among the most significant achievements in the past year, was the Agency'sability to secure an agreement with the Heart and Stroke Foundation to allow theHealth Check TM symbol to be used on egg cartons and on promotional literature.This symbol tells consumers that a product is good for them. Shoppers can buy eggswith increased confidence that they are doing something good for themselves andtheir families.
Government Relations Nutrition
Through 2001, we were very active in government consultations on the newnutrition label. The proposed new label, if implemented, will make it mandatory to listthe number of milligrams of cholesterol per serving but, unlike the United Stateslabel, will not make it necessary to list a daily value for it. During our consultationswith government, CEMA put forward convincing scientific evidence that dietarycholesterol is not a public health concern. We worked closely with our nutritionpartners at the Heart and Stroke Foundation and the National Institute of Nutrition tomake sure we were putting forward to Health Canada officials only the most crediblescientific information available. Our efforts on the trade front are expected tointensify in the near future, now that a new round of World Trade Organizationnegotiations has been launched. In 2001, we worked closely with our friends in the
20
other national supply management organizations to press the federal government tocontinue its support of supply management at the international level. The nationalsupply management organizations have placed a representative in Geneva to gatherinformation on our behalf. We participated in a trade mission in Geneva, meetingwith senior Canadian and other government officials.
CRIMINAL CODE
Together with the Canadian Turkey Marketing Agency, Chicken Farmers ofCanada and the Canadian Broiler Hatching Egg Marketing Agency, CEMA lobbiedthe government to change proposals found in Bill C-15B, the new animal cruelty law.We were concerned that the Bill could encourage frivolous and vexatiousprosecutions against farmers. As a result of our interventions, significantamendments were made to the bill, though not as many as we would have liked.Although we had problems with the bill, the national feather agencies remainedadamant in their view that new legislation was needed and penalties for animalcruelty had to be significantly increased.
Communications
CEMA expanded its communications to producers to describe the ongoingbenefits of the Agency's various programs. Our risk communications consultantscompleted extensive interviews with stakeholders to complete a risk audit.Information from the audit will be used in 2002 to develop an issue response manualto guide procedures to be used by the Agency during a serious event.
Research
The Agency's research program got underway in 2001 and the first meeting ofthe Canadian Poultry Research Council, made up of all the national featheragencies, held in January, 2002. The Council will help the feather groupsconsolidate research efforts, avoid duplication and provide the expertise needed toknow where to prioritize the expenditure of research dollars.
Code of Practice
Developing revisions to the humane handling code for our sector was one ofour major projects in 2001. Much consensus was achieved among the stakeholdersincluding veterinarians, poultry scientists, government officials and representativesof the humane movement and industry. At year's end, the code was not finalized butthe consensus developed in 2001 should lead to new guidelines in 2002.
212001 Repol1
JANUARY- DECEMBER 2001
Prepared for:
. Dr. H.L. Classen, Department of Animal and Poultry Science, Universityof SaskatchewanOrganizations funding the Poultry Extension Service.
Prepared by:
Sandra Stephens and Guillaume Audren
222001 Report
Salmonella program
The Saskatchewan Egg Producers continue testing all flocks for Salmonella enteritidis.In 2001 a total of 88 flocks were tested with none positive for Salmonella enteritidis andonly 12 (13.6%) positive for any Salmonella species. These results are similar to 2000and maintain the trend to lower levels of Salmonella being found on Saskatchewan eggfarms (see following Table)
# %
19971998199920002001
108108888388
3936191212
36.133.321.514.013.6
911464
No flocks positive for Salmonella enteritidis.
In 2001, four strains of salmonella were reported. Salmonella mbandaka continues tobe the most common type of salmonella found in Saskatchewan. This speciesrepresented 54% of the positive samples collected during 2001. The other strains ofSalmonella reported during 2001, were Salmonella orion, infantis, and anatum. It isimportant to note that Salmonella orion and anatum were not present in Saskatchewanlayer operations last year. According to the survey, 22% of Saskatchewan table eggflocks are under an .call-in!all-out" management system. This is a 220% increase since1999.
Nutrition and shell quality
Farm visits indicate that a some producers are overfeeding protein to hens during thelast 15 to 20 weeks production cycle. In these particular cases. protein level could likelyhave been decreased by 1 or 2% with no effect on production and egg size. To properlyphase feed or reduce protein, producers need to monitor feed intake, body weight andegg size accurately.
Shell quality was identified as a problem in a number of flocks. In general, calciumdeficiency was identified as the cause of the poor shell quality. It was recommendedthat producers top dress oyster shell on the last meal of the day and add vitamin 03 inthe water.
13
Salmonellastrains
# of Positive flocks # nf
2001 Report23
Knowledge of the daily feed (nutrient) and water intake of laying hens is essential tomaximize profitability of modern egg operations. These records allow for the predictionof flock problems, and are required to efficiently provide nutrients to hens and therebycontrol body weight, egg size and shell quality. For more details on the effects ofenvironment and feed intake see slides below.
Infectious Laryngotracheitis (IL T
A survey of serological titers for IL T was initiated in 2001. This survey was conductedto gather information on what the "normal" IL T titres are for Saskatchewan laying flocks.The information will provide ~aluable information on which future decisions can bebased in the event that a depopulation of a premise is necessary. In this survey 20randomly selected farms were chosen for the initial sample collection. Thirty birds weretagged and bled on each farm. Following the first sample collection, 3 farms that hadno titre for IL T and 4 farms that had low positive titres were selected for repeat serologictesting. These flocks were all between 18 and 26 weeks of age. Sera samples werecollected from the tagged birds every 8 weeks for the life of the flock. The final samplecollections will be done in the Spring of 2002. To date, it appears that the presence oflow positive titer is not an indication of the presence of clinical disease in the flock.
Producers often raise the question of vaccination for IL T. The results of this surveyindicate that there is not a problem with clinical disease in Saskatchewan flocks and thatthe use of vaccination against IL T is not required.
Staphlococcus aureus
A young laying flock experienced a sudden increased mortality and dramatic decreasein production. The afflicted hens had markedly swollen wattles and combs and went onto die within a few days. Staphlococcus aureus was isolated in pure culture from thewattles and combs of these birds. This organism is part of the normal "bacterial flora"found on the skin of poultry .Historically when it was found as a pathogen it wassecondary to or working in association with another bacteria or virus. Recent reportsindicate that this organism now seems to be capable of being a primary pathogen. Inthis case we were not able to identify any other agent involved. Avian Influenza,Newcastle Disease and Fowl Pox were ruled out as potential disease agents in thiscase.
Necrotic Enteritis/Coccidiosis
Periodically necrotic enteritis and/or coccidiosis are diagnosed in pullets just startinginto production. These diseases are not often seen in caged laying hens because thebirds have limited access to fecal material that harbours these organisms. In caseswhere disease is present, investigations have revealed that a buildup of manure occurs
14
2001 Report 24
in the cages. The outbreak is usually limited to a small number of cages but death losscan be significant, as these birds have no acquired immunity to these disease agents.
Proper management of manure in cage operations is required to eliminate necroticenteritis and coccidiosis as disease problems in caged laying hens.
15
25
MANAGER'S REPORT 2001
Work on the Egg Infonnation Management System (ElMS) continued through2001. We had hoped to have the Eggs For Processing program up and running,unfortunately other problems arose that needed the computer experts attention so the EFPprogramming was set aside.
With the remaining 150,000 EFP layers coming into production in the later halfof 2002 we will need the program up and running by then.
UTILIZATION
Provincial utilization is calculated on a 26-week average.Week #1 to 26 average Provincial Utilization was 796,121 or 95.8%.Week # 27 to 52 average Provincial Utilization was 794,800 or 95.7%.
With the exception of Newfoundland, Prince Edward Island and New Brunswick,the remaining provinces inventories must not exceed 97%.
INDUSTRIAL PRODUCT
The 2001 Industrial Product declarations was based on 238,000 boxes. Actualdeclarations for 2001 ended up at 211,840 boxes, this is 22,224 boxes under 2000 year todate or a difference of 14 truckloads.
EGG PRICING
Producer Price changed five times through out 2001
Producer Price COP Price
December 31/2000
January 28/2001
March 11 \2001
Apri129\2001June 3\2001
July 1\2001
September 2\2001
October 7\2001
October 28\2001
December 30\2001
1.36 Dozen1.37 Dozen1.39 Dozen1.39 Dozen1.39 Dozen1.39 Dozen1.41 Dozen1.42 Dozen1.43 Dozen1.42 Dozen
1.36 Dozen1.37 Dozen1.39 Dozen1.39 Dozen1.39 Dozen1.39 Dozen1.40 Dozen1.41 Dozen1.43 Dozen1.43 Dozen
AVERAGE 1.396 Dozen 1.396 Dozen
CEMA buys back at the Producer Price or COP price which ever is the lowest
26
EGGS FOR PROCESSING
The first of Saskatchewan's EFP layers were placed in June of2001. At the end ofDecember 2001 there was 69,278 EFP layers in production.
To balance off the Cooperator production the following barns were appointeddedicated: O&T Poultry, Abbey Colony, Pennant Colony and Silver Egg Farm.
New magenta colored plastic trays, dividers and pallets were purchased andplaced into inventory. The new material is only to be used by the dedicated barns.
The placement ofEFP layers will be slow through Apri12002. In May EFPplacement will increase and by December 2002 the 200,000 EFP layers allocated toSaskatchewan will be in production.
EGGS FOR PROCESSING PRICING
Umer Barry
Canada ususFeed Base
Canada52Weeks
MinimumMaximum
Average
24.0040.0032.17
37.0061.5049.78
33.2937.9436.42
53.7559.0256.28
At the present freight charge is 5 cents per dozen
RESEARCH PROJECT
"Soil Applied Poultry Manure ..
With the late start in the fall 2000, funding for the project was changed.CARDS funding would be reduced from 3 year to two (2) years while funding for
the third year of the project would come from TAD, P AMI and SEP. ( see attached
report)
PROMOTJQ~
Sponsorship
-Key sponsor of Dial A Nutrition Ask A Dietitian for April 200 I.-Provincial Holly sponsor for the CAMECO Jungle Bell Run for Arthritis.-The Heart & Stroke Foundation Golf Tournament
27
BILLBOARD CAMP AI GN
.'The Gift Of Goodness" -promotion started October 29\2002 and ran for 6weeks. This year we used a red ribbon instead of gold. The red ribbon was an attention
getter.
CANADIAN WESTERN AGRIBITION
Saskatchewan Egg Producers had two displays, one in the food fair and thesecond in Agri-Ed.
Agri-Ed is a hands on display representing the feather industry. The display hadchicks hatching, broiler chickens, laying hens in cages and turkeys.
The popularity of Agri-Ed with teacher and kids is at a point where attendancewill be limited if we don't get more space.
Food fair is where egg recipes are prepared and sampled by the audience. The useof the kitchen units added to the popularity and cleanliness of the area.
28
BACKGROUND AND OBJECTIVES
Poultry operations in western Canada have traditionally stockpiled or land appliedmanure. Expansion of the industry will depend on the development of manure management plansthat include sustainable spreading of manure on land used for agriculture production. Very littlehas been conducted in the Prairie Provinces to determine the crop response and sustainability ofbroadcast and incorporated poultry manure. Field research is required to determine optimumagronomic economic methods of field application of poultry manure.
The objectives of this project are to evaluate and demonstrate the agronomic effects ofbroadcast and incorporated poultry manure on annual crop production. All plot treatments wereapplied in spring 200 1 and the results will be monitored until fall 2003 to determine the long-term benefits of poultry manure application.
SUMMARY
The project's initial start date of Fall 1999\Spring 2000 was not met due to delays inconfinning project funding. As a result, the research commenced in Spring 2001 and willcontinue until Fall 2003, with a final project report to follow in Spring 2004.
Project activities that have been perfonned to date include the establishment of a researchsite location, and the test plot layout and staking at this site. These activities were performed inFal12000 in preparation for the fall application of poultry manure on the test plots. However, fallapplication of the poultry manure did not occur due to spreader equipment breakdownsexperienced by the custom operator contracted to spread the poultry manure. The manureapplication was carried out on May 5,6, and 7, 2001 by a different contractor. Spring soilsampling of check areas showed that overall available nitrogen was expected. The manure wasworked into the plots and the plots were seeded May 19 to canary seed and were harvestedAugust 27 and 28, 2001.
In general, limited rainfall resulted in poorer than usual yields, but application of 8 ton\acre ofmanure produced a 100 kg\ha yield increase and an application of 16 ton\acre gave the highestaverage yield of approximately 1, 100 kg\ha. The low application rates of 2 and 4 tons\acre didnot produce a significant higher yield in this year than the check. The 32 ton\acre rate did notproduce a significantly higher yield than the 16 ton\acre rate. Overall it would appear from thisyears results that a high rate of 32 ton\acre is excessive. It will be interesting to determinewhether the lower rate produces a response in subsequent years.
Fall soil tests showed that only the 16 ton\acre and the 32 ton\acre rate produced higherresidual nitrogen than the check areas with the most of the excess nitrogen in the top 30 cm withslight elevation at the 30 to 60 cm depth.
29
Project funding has also been affected by the one-year delay. Funding from the CanadianAdaptation and Rural Development in Saskatchewan ( CARDS) program that was originallyallocated over the three years of the project is now to be used over the first two years only.Funding for the third year of the project will come from other agencies, including theSaskatchewan Egg Producers and Technology Adaptation and Demonstration Fund (TAD), aswell as a PAMI contribution. ..
CONCLUSIONS
Due to various circumstances, the project is one year behind schedule. Poultry manurewas successfully applied and incorporated in the plots in Spring 2001. The plots were seeded tocanary seed in Spring 2001 and yield samples were harvested with a sma11 plot combine in Fall2001. While generally lower than desired due to poor moisture conditions a yield response wasobserved at 8 tons\acre and 16 ton\acre manure application rate and based on this years resultsonly it would appear that a 32 ton\acre application rate is excessive.
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33
SUMMARY OF PRODUCT DISPOSITIONYEAR TO DATE: WEEK 52,2001
2001 2000 % ChangeI SUPPLY I -
Grade A 27806852 27062020 2.80%
Undergrades 1650354 1613098 2.30%
Nest Run 2028518 2134028 -4.90%
-DOMESTIC 31485724 30809145 2.20%
Table Imports 558331 594437 -6.10%
TOTAL SUPPLY 32044055 31403582 2.00%
I SALES I
Domestic Table Sales 338847 455433 -25.60%
Egg Processor Sales 6524514 6132377 6.40%
* Year 2000 contained 53 weeks and has been adjusted to 52 weeks for comparison purposes** Equals CEMA sales to Table Market
Source: Domestic Supply: Provincial Egg Boards and Asgriculture & Agri-Food CanadaCEMA Sales: Canadian Egg Marketing AgencyImports: Agriculture & Agri-Food CAnadaNote: Figures are based on preliminary information and are thereforesubject to change. Unit of measure is boxes of 15 dozen
34Canadian Estimated Table Egg Disappearance
Year to Date for 2001 week 52
Gradings Imports Sales Disappearance--
1 540365 9480 134901 414944
2 621198 3200 155497 468901
3 572796 3531 152195 424132
4 568766 6348 134708 440406
5 589410 1250 123783 466877
6 576300 5180 143580 437900
7 581108 6200 138799 448509
8 546794 4988 135128 416654
9 574522 9265 124954 458863
10 563875 6300 111673 458502
11 462517 7386 115336 354567
12 671016 6616 122001 555631
13 589871 13936 113943 489864
14 535646 10800 94469 451977
15 592582 4500 61230 535852
16 472922 6100 107115 371907
17 648576 8180 124080 532676
18 560347 9272 131670 437949
19 570796 14765 140472 445089
20 476120 12393 132398 356115
21 651174 15829 125469 541534
22 588314 8287 149446 447155
23 576083 14359 125674 464768
24 572844 9326 148912 433258
25 577246 10892 136062 452076
26 577927 15875 138863 454939
27 581929 7360 123989 465300
28 488236 10020 127663 370593
29 583406 6100 122218 467288
30 689709 15000 127057 577652
31 582376 11938 125321 468993
32 572772 12315 114612 470475
33 576494 15537 132608 459423
34 566777 11026 131188 446615
35 559801 12503 126880 445424
36 598683 16836 119163 496356
37 561778 7681 131619 437840
38 568424 13300 133545 448179
39 578290 11560 132319 457531
40 558665 13398 132408 439655
41 554671 11720 114814 451577
42 565272 10212 123482 452002
43 571410 11060 120414 462056
44 542231 11680 119378 434533
45 619868 9260 124103 505025
46 566631 16670 122219 461082
47 583153 9336 126053 466436
48 590772 15120 119337 486555
49 587882 10881 114549 484214
50 588806 18063 101587 505282
51 557173 38167 105295 490045
52 581046 7300 130335 458011
YTD 29835370 558331 6524514 23869187
LastYTD 29196048 594437 6132230 23658255
% Change 2.20% -6.10% 6.40% 0.09%* does not include B.s and Other
..Year 2000 contained 53 weeks and has been adjusted to
to 52 weeks for comparison purposes.
National Table Egg ImportsYear to Date for 2001 Week # 52
Weck XL-
L M s Total35
9480 ~~4801
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j15348
1250
~5180
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..9881
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158291
8287
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108921
158751
73601
100201
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150001
119381
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1.55371
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J XL L TOTALM s
174\ 1465831 3022061 98448~ 51001 5583311IVTD
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38INDUSTRIAL PRODUCT SALES 2002 BOXES OF 15 DOZEN[
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41
Egg and Hen Allocation -Effective .December 30, 2001
12130/2001
Eggs RegulatedAvaiable for Layers .
Regulated Sector @ 2'1.4/doz/layer
2002
Effective
Allocation
Base
Hatching Eggs
1996
Non-Registered
Production
B.C.
AlTA.
NWT
SASK.
MAN.
ONT.
P.Q.
N.B.
N.S.
P.E.I.
NFLO.
63,961,06444,879,943
2,806,00023, 732,80556,620,562
197,018,49091,775,99510,860,74519,434,1223,215,8588,603,244
2,255,0002, 106,000
0
850,0001,479,0009, 721,0006,005,000
355,000721,000
62,00020,000
2,180,8003,572,000
0
2,556,800958,800
6,598,800676,800
165,44q238, 760
94,00048,880
59,525,26439,201,943
2.806,00020,326,00554,182,762
180,698.69085,094,19510,340,30518,474,3623,059,8588,534,364
2,439,5601,606,637
115,000833,033
2,220,6057 ,405,684
3,487 ,467423,783757,146125,404349,769
TOTAL 522,908,828 23,574,000 17 ,091,080 482,243, 748 19,764,088
Limits to Quota for the Period Beginning on December 30, 2001
Limits
to FederalQuota
Limits to Eggs Limits to Market
for Processing DevelopmentQuota Quota
B.C.
AlTA.
NWT
SASK.
MAN.
ONT.
P.O.
N.B.
N.S.
P.E.I.
NFLD.
63,961,06444,879,943
2,806,00023, 732,80556,620,562
197 ,018,49091, 775,99510,860,74519,434,1223,215,8588,603,244
2,440,000
4,880,0009,760,000
17,080,0002,440,000
12,200,000
TOTAL 522,908,828 36.600,000 1,2.200.000
42
Canadian Egg and Egg Product Imports
For 2001 week 01 to week 52
Egg Type
Table (Boxes)
Globals
Total Last Year% Cha][lge :
552511 586945 -5°;.)
Supplementals 0 0
Total Table 552511 586945 -5~)
Industrial
Breakers (Boxes)
RE-export (Tonnes)
12~0--
570;0
942578
3124
843381
1986
oooo
oooo
Frozen
Liquid
Total Processed
Units: (Boxes) = Boxes of 15 dozen.
Source: Agriculture and Agrifood Canada, Canadian Egg Marketing
AgencySubject To Revision
Dried
43
us Situation and OutlookFebruary. 2002
Layers
Flock sizes in the US were larger throughout 2001 over 2000 levels, at all timesof the year, as demonstrated in the following graph.
Laying Hen statistics -2000 vs. 2001
Avg Number Layers During Month
350
340
330O 2000
m 2001320
310
300
)~~'O' )v"!<JV<:)
Source: United States Department of Agricu!ture (USDA)
As shown above, total layers in Nov 2001 increased by 6.435 Million, an increaseof almost 2% over Nov 2000 to 337 million. Of this total, 278.4 million were tableegg layers, an increase of approximately 1% over last year's levels.
The average a!1nual increase in total layers for the year comes in at almos;t 2%.Proportionally, the largest portion of the annual increase is attributed to hatchingegg layers (5% over last year).
Flock sizes were at their peak in April (336.8 million) and Novembei (337.1million) and at their low in December (332 million) and July (331.6 million). Thispeak and trough pattern corresponds with the normal seasonal factor .
The age of the year 2001 flock was one of the oldest in the last 16 years:consequently, January and February should see a large disappearance c' I/ery
old hens.
44
Production
Egg production was also up in 2001 over 2000. although not by the same marginas that of the increase in layers. Note that February 2001 was a 28-day month ..whereas February 2000 was a 29-day month. thus resulting in lower prodlJctionnumbers for 2001.
Year-Over-Year Table Egg Production
Table Egg Production
6,500
6,000
5,500C/)c
~~
5,000:02000
;a20014,500
4,000
3.500
3.000
~v<'
Source: USDA
Total egg production increased 1.4% year over year 1 an increase of 6.4 millionboxes (15 dozen per box) of eggs. The US table egg production accounted forthis increase with an increase of 1.7% over last year while annual hatchir\g eg.9production actually went down 0.2% from last year.
Prices
Prices were generally strong during the early part of 2001. Although theeconomic recession wasn't officially announced until March 2001, prices werestable until June at which point they fell steeply under 2000 levels. act<. .~r-December's U.S. Northeast prices were the second lowest value since.. ~& 7
(PES' Newsletter).
45
The following is a monthly average price table for Midwest grade A large eggs,including the price differential year-over-year.
Monthly Avg. Midwest Wholesale Price -Grade A Large
Month / Year 2001 2000 %Chanqe
$0.775$0.751$0.801$0.753$0.614$0.608$0.641$0.656$0.612$0.686$0.728$0.686
$0.647$0.701$0.642$0.713$0.534$0.660$0.639$0.749$0.690$0.773$0.849$0.968
19.7%7.1%24.9%5.6%15.1%
(7.8%}0.3%
(12.5%}(11.3%)(11.2%)(14.3%)(29.2% )
January
FebruaryMarch
April
MayJune
July
August
SeptemberOctober
November
December
Averaqe $0.693 $0.712 (2.6%)Source: Urner Barry
Price Outlook
Prices for the first quarter of 2002 are expected to increase over the October-December 2001 period. although historically this has only been the case 6 out ofthe last 21 years. Prices are anticipated to dip during February with a surge inMarch to coincide with Easter. This year. Easter Sunday will be celebrated onthe 3151 of March.
Production Outlook
The number of egg-type eggs in incubators on December 1 51 was at 93% of the
levels recorded in December 2000. Chicks hatched in December were alsolower than in 2001, coming in at 98% of prior levels. However, chicks hatchedJanuary through November increased 6% over last year's level, which represents23 million more chicks for the first eleven months of 2001. This represents amoderate slowdown in the last couple of months, considering chicks hatchedthrough the first 9 months of the year were ahead of last year's pace by 24.1million chicks. In the short term, it seems the flock has stopped expanding.Pullets less than 20 weeks of age in December were at roughly the same 11~velcompared to last year's levels as were layers sold to slaughter during November .
46
The percentage of layers being molted was aiso down to 9():~'o of last year'sDecember 151 numbers.
Miscellaneous Info
Iowa saw the largest increase in egg prodLIction and laying hens, with astaggering increase of 12.5% egg layers over November 2000 levels. Thlefollowing shows the top ten egg producing states in November, year-over-year.
Egg Production per State- November 2000 vs. November 2001
Source: USOA
Summary of Key Points
FB:FNN
