A $2.00 per head Cattle Industry Development Council check-off paid by producers when cattle are marketed in British Columbia is working for the beef cattle producer. Here is a brief look at how the check-off dollars are used to influence the marketplace for the cattle industry. The $2 check-off includes:
$1 for the National Check-off $1 for the Cattle Industry Development Levy fund
How is the check-off collected? The beef check-off is collected under the authority of the Farming and Fishing Industries Development Act and a Cattle Industry Development Council Regulation. This producer requested levy has been supported in BC since 1972.
Who determines spending? Check-off spending is determined by the producer Council. The Council is appointed by the Minister of Agriculture Foods & Fisheries, from nominations submitted by provincial cattle industry associations. The Minister also appoints one of his staff to serve on the Council.
How much money? Collections vary as to the size of the cattle herd and the number of cattle marketed. The CIDC fund tends to be about $600,000 per year, with matching funds triggered from the trust. $1.2 million is available on an annual basis.
Who collects the money? Ownership Identification Inc. brand inspectors collect the CIDC check-off on private treaty cattle sales within BC where a dealer is not involved. Dealers will remain responsible to collect the levy on other sales.
Should the check-off be refundable? The National Check-off portion is non-refundable. In British Columbia, as in Saskatchewan and Manitoba, the beef check-off is refundable. Producers who do not wish to leave their check-off dollars to work for the industry can ask for it back before January 31st of the year following payment. Refunds tend to be low, and in the recent years, 97% of dollars collected in BC have remained in the fund to work for the beef industry.
Is it a government tax? No, it is dollars collected by the industry to work for the industry in research, promotion and industry development. Receipts and expenditures are administered by the Cattle Industry Development Council.
Has the Check-off worked? Yes, by working together beef cattle producers can pool beef check-off dollars and have the power to deliver strong, focused and effective programs to benefit the beef industry.
$1.00 of the CIDC check-off is designated for the National Check-off. The funds collected Canada-wide are directed towards two goals:
increasing sales of beef (domestic and export), and finding better and more efficient methods of producing beef and cattle.
Increased sales of beef will be achieved through product promotion and development and expansion of new and existing markets by contribution to the Beef Information Centre and the Canada Beef Export Federation. Better and more efficient ways or producing beef and beef cattle will be developed through research. The Beef Cattle Research Council will administer the funds and will be tasked with ensuring research is well coordinated throughout the country and guided by sound industry priorities.
Beef Information Centre (BIC)Following the mandate "To increase consumer demand for beef in Canada" the BIC has operated since 1973, supported by beef producers through the check-off. Developing and implementing programs to inform consumers, promote beef across Canada, and develop new products is the job. Seven key initiatives have been identified: Develop/promote more branded, convenient and value-added beef itemsIncrease saleability of hip and chuck cutsImplement all 3 elements of the retail nomenclature program in all major retail chainsImprove consumer perceptions of beef's convenience and trendinessImprove consumer perceptions of beef's healthfulnessIncrease beef's presence at retail and food serviceSupport quality programs
Develop/promote more branded, convenient and value-added beef itemsIncrease saleability of hip and chuck cutsImplement all 3 elements of the retail nomenclature program in all major retail chainsImprove consumer perceptions of beef's convenience and trendinessImprove consumer perceptions of beef's healthfulnessIncrease beef's presence at retail and food serviceSupport quality programs
Canada Beef Export Federation (CBEF)Canada Beef was established in 1989 as an independent non-profit organization committed to improving export results for the Canadian cattle and beef industry. Canada Beef's vision is that "High-quality Canadian beef and veal will become the worldwide symbol of excellence" with the mandate "To identify and develop key markets to increase the sale of Canadian beef and veal products." Canada Beef is building recognition and demand for Canadian beef and veal products, with an established presence in six key countries. Canada Beef is going the distance in forging strong links to export opportunities.
Beef Cattle Research Council (BCRC)The purpose of the Beef Cattle Research Council will be to sponsor research and technology development and adoption in support of the vision of the Canadian beef industry to have high quality Canadian beef products recognized as the most outstanding by Canadian and world customers. To achieve this purpose, the BCRC will: Identify, fund, and manage beef research and technology development in strategically focused priority areas of national significance.Promote excellence in Canadian beef research and technology development by facilitating the exchange of information and expertise.Support and encourage the rapid commercial adoption of new technologies to sustain competitive advantage
Identify, fund, and manage beef research and technology development in strategically focused priority areas of national significance.Promote excellence in Canadian beef research and technology development by facilitating the exchange of information and expertise.Support and encourage the rapid commercial adoption of new technologies to sustain competitive advantage
The other $1.00 of the CIDC Check-off is designated for provincial projects. This producer managed fund supports awareness, research, marketing, and promotion projects for the benefit of the B.C. beef industry.