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BFO Statement: Government Taking Steps to Mitigate Current Market Challenges
June 27, 2024
June 27, 2024 (Guelph, Ont.) – The Beef Farmers of Ontario (BFO) is pleased that the Government of Ontario, in cooperation with the Government of Canada, are taking steps to assist beef farmers with cashflow given the current market challenges:
- The Ontario government is moving up the 2024 Q1/Q2 Risk Management Program (RMP) payment for beef farmers to the end of August to provide cashflow earlier. To enable earlier payments, the deadline for sales reports will be brought forward to July 15th from July 31st.
- There will be a temporary exemption to allow market-ready animals that are over 30 months to be eligible for RMP.
- This temporary adjustment to the age requirement will keep market-ready cattle eligible under RMP. Cull cows remain ineligible for RMP.
- The governments of Canada and Ontario have increased the AgriStability interim payments for beef farmers from 50 per cent to 75 per cent.
- The Ontario government and BFO are closely monitoring loans under the Feeder Cattle Loan Guarantee Program. If needed, the Minister will work with BFO to look at flexibility on deadlines.
“Our government is committed to strengthening the agriculture and food sector, particularly during times of increased market challenges,” said Rob Flack, Minister of Agriculture, Food and Agribusiness. “These actions will help Ontario’s beef sector remain resilient and ready to seize new opportunities even as it faces cost pressures beyond its control.”
Agricorp is committed to working with farmers on a case-by-case basis. Producers who are struggling with cashflow or premium payments should contact Agricorp to discuss their options. OMAFA has also developed resources related to marketing and feeding animals during a market disruption which are available at: Information and resources for beef producers during market disruptions | ontario.ca.
“We appreciate the steps the provincial and federal governments have taken to assist beef farmers struggling with the current market challenges, with special thanks to Minister Flack and provincial ministry staff who moved quickly to get these interim measures in place,” said Craig McLaughlin, BFO President.
Farmers can access free programming available to support their mental health, such as the 24-7 Farmer Wellness Initiative tele-resource at 1-866-267-6255. Ontario is also working with the industry to support farmers’ best management of animal health and welfare considerations and other matters, as they navigate this pressure on their normal business operations.
For more details, visit Agricorp.com: Cattle farmers can now get cash flow sooner
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Canada's Beef Sector Urges Resolution on Cargill Labour Dispute
June 24, 2024 (Calgary, Alberta) - On behalf of Canada’s 60,000 beef producers including 19,000 beef producers in Ontario, the Canadian Cattle Association (CCA), National Cattle Feeders Association (NCFA) and Beef Farmers of Ontario (BFO) strongly encourage the Cargill Dunlop facility in Guelph and members of UFCW Local 175 to come to an expedited labour resolution. The beef sector in Canada relies on a resilient processing industry across the country and the impacts of this strike are significantly impacting beef producers in eastern Canada.
“Canadian beef producers rely on a strong and stable supply chain to get beef to Canadians and our global customers as efficiently as possible. While we fully respect and support the collective bargaining process, we cannot turn a blind eye on the effect this stalemate is having on our beef industry,” commented Nathan Phinney, President of CCA. “Both sides are urged to expedite their negotiations to find a solution as soon as possible.”
Having a processing facility in Guelph is key for eastern Canadian beef producers and supports a number of regional brands and programs. To date, there has been no indication of upcoming talks or negotiations that would see an end to the strike that began on May 27, 2024.
“The challenges that come with the loss of eastern Canada’s largest beef processor cannot be understated,” shared Craig McLaughlin, BFO President. “Ontario is the second largest cattle feeding province in the country, and our members rely on the important work of our processing partners and their role in getting beef on the plates of consumers here in Ontario and around the world. With each passing day, the consequences of the Cargill Dunlop labour strike continue to mount for our feedlot sector, beef supply chain partners, and our farmers’ ability to cash flow their operations. BFO urges both sides to work toward an immediate resolution of this dispute.”
Ontario beef farmers have been mitigating the impact of supply chain challenges by sourcing alternative facilities in Canada and the U.S. to process their cattle or keeping animals on farm for a longer period of time. Both options present unique challenges and additional costs. CCA’s The Canadian beef sector has growing concerns is about the sustainability of these efforts and effects on the industry as the strike enters its fifth week.
“NCFA urges both parties to negotiate a swift resolution,” said NCFA Board Chair Will Lowe. “Cargill Guelph is the major plant supporting Canada’s largest fed-cattle region in the country after Alberta. This disruption is difficult for beef producers who are already facing multiple other challenges.”
Cargill Guelph processes approximately 75 per cent of the cattle in Ontario and plays a significant role in the Ontario beef supply chain. The Cargill Guelph Dunlop facility fills 67 per cent of the federally inspected processing capacity in eastern Canada.
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Beef Farmers Call for Resolution on Cargill Labour Dispute
June 11, 2024 (Guelph, Ont.) – We remain highly concerned by the ongoing labour dispute between members of UFCW Local 175 and the Cargill Dunlop facility in Guelph.
In the short-term, beef farmers have been mitigating the impact by sourcing alternative facilities in Canada and the U.S. to process their cattle, or keeping animals on farm for a longer period of time, both of which present unique challenges and, in many cases, additional costs. We do remain concerned about the sustainability of these efforts if the strike is prolonged.
The supply chain challenges that come with the loss of eastern Canada’s largest beef processor cannot be understated, consequences that will only increase with each passing day and week that the strike continues.
Yesterday afternoon, we were fortunate to meet with Ontario’s new Minister of Agriculture, Rob Flack, to brief him on the current situation, reiterate the significance of the disruption, and outline our list of short-term measures that we believe will help mitigate the extra costs associated with marketing and transporting cattle to new locations, if the dispute persists.
Since the onset of the strike, our leadership has been in close contact with government representatives, the Canadian Cattle Association, the National Cattle Feeders’ Association and the Canadian Food Inspection Agency to discuss the current and evolving situation, and potential mitigation measures that could be invoked if the strike is prolonged.
Beef farmers who need to move cattle have been grateful for the remaining buyers and processors in the marketplace who have been helping to manage the growing backlog.
While we fully respect and support the collective bargaining process, we urge both sides to get to the negotiating table and a find workable solution as soon as possible.
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June 3, 2024 (Guelph, Ont.) – As we enter week two, Beef Farmers of Ontario (BFO) and the Ontario Cattle Feeders’ Association (OCFA) continue to monitor the strike action by members of UFCW Local 175 working at the Cargill Dunlop facility in Guelph, and its impact on beef farmers.
Our leadership has been in close contact with Minister Thompson, government representatives, the Canadian Cattle Association and the National Cattle Feeders’ Association to discuss the current and evolving situation and potential mitigation measures that could be invoked if the strike persists.
Late last week, and over the weekend, we met with members of BFO’s Feedlot Committee, which is comprised of elected feedlot owners from across the province, to finalize short-term solutions to help mitigate the on-farm consequences of the strike, which we have submitted to the province for review and consideration.
We remain hopeful that the negotiations between both parties will come to a swift resolution, and will keep our members informed as the situation develops.
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May 27, 2024 (Guelph, Ont.) – Beef Farmers of Ontario (BFO) and the Ontario Cattle Feeders’ Association (OCFA) are aware of the strike action that began today as of 12:01 a.m. following the rejection of the negotiated settlement by members of UFCW Local 175 working at the Cargill Dunlop facility in Guelph. The Cargill Dunlop facility employs 950 people and processes 1,500 head of cattle per day.
BFO and OCFA have been following the negotiations leading up to today, and we were hopeful an agreement would have been reached over the weekend. However, members of UFCW Local 175 voted down the proposed contract yesterday. We are engaged in the situation and have been in close contact with the Canadian Cattle Association and government representatives as we monitor the impact of the temporary closure of the Dunlop facility.
We are hopeful that the negotiations between both parties will come to a swift resolution, and we will keep our members informed as the situation develops.
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