36
2011 A Annual l R Rep or rt t M Mani i t ob ba P Pork k C Counci i l l of a sustainable future We are all part We are all part

2011 Annual Report - Manitoba Pork Council

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

2011 AAnnuall RRepporrtt1MManiitobba PPorkk CCounciill

of a sustainable futureWe are all partWe are all part

waterwaterwaterwaterwaterwaterwaterwater

aterwaterwaterwaterwate

ar samp

sampsampsampsampampamp

sampsasampsampamp

sampamp

sampamppple:lllllle:lelle:le:

lele:ele:le:lelele:le:e:e 3030303303022303030303022300302223030302230220022002202222222

It is my job

I ampart of the solution.

InIn 22003,3, wwe e acachih eveveded tthehe iintnterernnannaan ttttitit oonononnalal eeeeeenvvvvvvviririririrrrooooonono memmemememememem nnnntntntntnntttn alaaalaalaalaaa cccccccccccerererereerererreereee ttiitiiiiitt fi fificacacacacacacaaatitittttttt ooooonnoo ooooooooooofffffISISO O 141400001.1. EEveveryry mmononthth oourur ffarararmmsmsmsmss sssssububmimmmmm t anaaananana eeeeeeenvnvvvvvvvirrrrrrrroooononononooooooo memememememmementnnnnntntttntttn aaaaaalaaa rrrrrrrepepepepepepeppepeppooorroooo t t tototototooto make surre e ththat we e continuee ttoo oo maaaaam iiiininnniniintaainnnnnn thehehehehehehh seeeeeee iintntntnttttteerererererrrerrnnanananananatititiiiitioonnnnnnnnnaalalalalalallalaalaa sssstatatatatatataaaaaandndndnnddddndndarrrardsdsdsdsddsdsdsdssdsddss....

MoMonitoriingg oourur wwetetlal ndnds throougughh wwwwawawawww teer rr rr saaaaaaampliliiiiiingngngngnggngngn iiiiiss s jujujujujujuuujujj stststssssssonone e ofof tthehe mmany steps s wewe ttakakee ini eeeeenvnvn irrononononononoonmmmmmmem ntaaalalalalaalall rrrrrrrrrepeeeeepepepee orororororoororororrorooo tttttttitt nnnngngngggngg.

We go beyoy nd ggovoverernmnmenentt reegug laaaaaaaatitit ooono ssssss s tototottooootot prororr teeeeectctcctctcctccctcMaManin totobaba’’s nnatatururalal rresesouourcr eses, , fof r r tttthhhhht e eee fufuuuuuuuutututututuutuuttureof Manitoba’s wetlandsand wildlife habitats.

4 Letter from the Chairman

5 Letter from the General Manager

6 Board of Directors

7 Directors, Delegates and Districts

8 District Advisors

9 Manitoba Pork Council Staff

10 Public Relations

12 Pork Sports Promotions

13 Sustainable Development and Research

14 Industry Performance and Services

16 Industry News

18 Financial Statements

Printed in Canada with FSC Certifi ed as well as SFI Fiber Sourcing Certifi ed and Rainforest Alliance Certifi ed paper

Table of Contents

2011 Annual Report MANITOBA PORK COUNCIL 3

Manitoba Pork Council28 Terracon PlaceWinnipeg, MB R2J 4G7

(204) [email protected]

44444444444444444444444444444444 4 202020200220202020202020202202020220202020202020202020202002220022020002020000000011111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAnAnAnAnAnAnAnAAnAnAnAnAnAAAAnAAnAAAnAAAAAnAAAnAnAAnAAAAnAnAnAAAnAnnAnAnAnAnAnAAAnnAAnnnununnunununuunununununuuunnunununuunnunuuunuuuunnnunnunuuuunnnnuualalaalalaalallalalalalalaaalalalalalaalaalalaaalaaaaalalaa RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepeepepeepeepepepepepepepepepppepeepeepppepepeppepepepepeppeppepppepepppepeppppppppppppppppppororoooororororoorororoororororororoorororororoororrrororororrrorororooroooooororooorttttttttttttttttttttttttttttttttt ttttttttttttttttttt MANMAMANMMANMANMANMMANMANMANMANMANMMANMANMANNMANMANAAMANAMANNMANM NNMANMANMAMANANNITOITOOITOOTOITOITTOTOITOITOOOOITOOITOOOITOTOOOOTOOTOITOITOOOOOTITOOTOTOTOTOTTOOTTOOBABAABABABABABABABABABAABAABAABABAAAABABAABBABBABA ABBABBBA BA BBBA PORPORRPORPORPORPORPOORORPPORPPORPORPOROOORP RPOPORRPORPORRORRPPORPORRPPORK CKKK CCKKK CCK CK CCK CK CK CKK CKKKK CKK CKKKK CKK CCK CCCOUNOUOOUNOUNOUNOUNOUNNNOUNOUNOUNOUNUUNUOUNOOUNOUNOUNOUNUNOUOOUOOUUU CILCILCILCILCILCILCIILCC LILCCILCILCILLCC LL

After many years of fundraising, the University of Manitoba fi nally opened the Bruce D. Campbell Farm and Food Discovery Centre at the Glenlea Research Station, which will educate the public about farming practices and food production. Manitoba Pork Council invested almost $600,000 in this project over fi ve years. Take your family and friends to visit this new exciting educational centre. You’ll be impressed!

Our Pork Sports promotion, which positions pork as an excellent source of protein for athletes, came into full force with very positive feedback from the public. Linking foodstuffs to sports and performance has proven to be a successful marketing strategy for many consumer products.

Your Board of Directors and staff have worked hard to provide benefi cial programs and services. The Board relies on members’ advice to make sound decisions. All members are encouraged to participate in our meetings and to be active in the organization. Feel free to call any director on any matter. Your success is our measure of success.

Karl KynochChairmanManitoba Pork Council

We fi nally started to make money in 2011. With strong pork exports, in spite of a high dollar, prices stayed steady and producers started regaining lost ground. However, the provincial government imposed a moratorium on the industry before the provincial election, casting doubt on the future viability of Manitoba’s pork industry.

Going forward, we plan to deal with this challenge in cooperation with government and the sustained presentation of facts. The pork industry has a good environmental track record, but most people know little about how we do business.

In March, the Board released a sustainable development report which outlined a series of policy positions to ensure that the pork sector is a responsible corporate citizen. Some positions may be controversial, but they have broad support among producers and key stakeholders. A special presentation of the report was held in the Legislative Building and was warmly received by Minister Stan Struthers and other MLAs.

Manitoba Pork Council (MPC) directed its communications strategy to emphasize key environmental messages through the We are Part of the Solution multi-media campaign, which complements the Family Behind the Farm efforts. This new campaign struck a supportive chord with the public, and will be extended into 2012.

Recognizing the industry has changed, MPC restructured itself by abolishing the delegate structure, changing the geographic representation from fi ve to two districts, and electing two directors-at-large. The newly-formed District Advisors group provides a forum for discussion and advice to the Board. The Fall district meetings were consolidated into two meetings (Portage la Prairie and Niverville). These changes will be seen in the new Board of Directors when it meets after the 2012 Annual General Meeting. The new structure will develop new leaders and guide industry development.

In partnership with the Canadian Swine Health Board (federally funded) and the Growing Forward program (federally/provincially funded), MPC launched a major Biosecurity Training Program for producers and veterinarians. Funding was available for training and facility upgrades. Over 600 farm operations are participating in this two-year project. Further, the federal and provincial governments provided $25 million to assist producers to upgrade and repair their manure handling facilities. This was particularly helpful to smaller producers.

Letter fromthe Chairman

Karl KynochChairman

2011 Annual Report MANITOBA PORK COUNCIL 5

We continue to assist setting up a national swine tractability program (PigTrace Canada), and a hog mortality insurance program with the Manitoba Agricultural Services Corporation. Producer issues were a focus of the grading company. Our credit corporation was busy with new loans while moving existing accounts to the second Stay of Default. Our trade advocacy project in the United States involved travel to Washington, Minneapolis and Des Moines. Our project is almost unique in Canada and has been critical in maintaining open trade in pork and pigs for Manitoba producers.

On behalf of staff, I would like to thank the Board for their dedication, direction and support to ensure our programs and services meet the needs of producers. We look forward to a challenging year in 2012.

Please look through this report for more details about all of our accomplishments. If you have any questions, please call or email any member of the staff group.

Andrew DicksonGeneral ManagerManitoba Pork Council

You could say that 2011 was better, but not great. With good prices and better margins, there was more optimism in the industry than we have seen for some time. Producers have lost much equity, but at least some were able to start paying down debt.

Government support programs played a key role in the survival of many producers in Manitoba, though not all were able to benefi t. While the number of fi nished pigs marketed has steadied, the number of export weanlings has shrunk to about three million per year. The World Trade Organization ruled in Canada’s favour, but the United States has yet to comply with its trade treaty obligations. The provincial moratorium simply compounds the diffi culties facing the industry in its recovery from the devastating low prices and trade restrictions.

Our programs and services are focused on how to improve producers’ bottom line. One of the key elements in improving margins is to reduce the incidence of diseases. The Biosecurity Training Program is combined with identifying the incidence of Porcine Reproductive and Respiratory Syndrome, which is estimated to cost the industry about $5/head. Control of this disease is achievable in Manitoba because of its relatively low incidence and the level of biosecurity built into the production system. Manitoba is participating actively in a number of Canadian Swine Health Board programs to minimize the impact of this disease.

New public information and marketing campaigns involved a signifi cant amount of staff time and budget. We are into the second year of our plan and are moving the dial of public opinion towards a more favourable view of the industry and its importance to the provincial economy.

Our research expenditures have been very focused on assessing new manure management technologies, especially on manure separation. A number of projects are underway to look into different housing systems for gestation sows. A major research paper was commissioned and released showing how our actual manure management practices do not cause nutrient problems for Lake Winnipeg. This report will form the core of our continuing efforts to inform politicians and others about our stewardship role in protecting the environment.

Letter fromthe General Manager

mail any member of the staff gro

ndrew Dickson

66666666666666666666666666666666 6 202020200220202020202020202202020220202020202020202020202002220022020002020000000011111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAnAnAnAnAnAnAnAAnAnAnAnAnAAAAnAAnAAAnAAAAAnAAAnAnAAnAAAAnAnAnAAAnAnnAnAnAnAnAnAAAnnAAnnnununnunununuunununununuuunnunununuunnunuuunuuuunnnunnunuuuunnnnuualalaalalaalallalalalalalaaalalalalalaalaalalaaalaaaaalalaa RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepeepepeepeepepepepepepepepepppepeepeepppepepeppepepepepeppeppepppepepppepeppppppppppppppppppororoooororororoorororoororororororoorororororoororrrororororrrorororooroooooororooorttttttttttttttttttttttttttttttttt ttttttttttttttttttt MANMAMANMMANMANMANMMANMANMANMANMANMMANMANMANNMANMANAAMANAMANNMANM NNMANMANMAMANANNITOITOOITOOTOITOITTOTOITOITOOOOITOOITOOOITOTOOOOTOOTOITOITOOOOOTITOOTOTOTOTOTTOOTTOOBABAABABABABABABABABABAABAABAABABAAAABABAABBABBABA ABBABBBA BA BBBA PORPORRPORPORPORPORPOORORPPORPPORPORPOROOORP RPOPORRPORPORRORRPPORPORRPPORK CKKK CCKKK CCK CK CCK CK CK CKK CKKKK CKK CKKKK CKK CCK CCCOUNOUOOUNOUNOUNOUNOUNNNOUNOUNOUNOUNUUNUOUNOOUNOUNOUNOUNUNOUOOUOOUUU CILCILCILCILCILCILCIILCC LILCCILCILCILLCC LL

Jonathon BoykoDIRECTOR - PARKLANDMember, Industry Performance and Services Committee

Arian de BekkerDIRECTOR – WEANLING EXPORTERSDirector, Canada Pork InternationalMember, Sustainable Development and Research Committee

David WaldnerDIRECTOR - NORTH STAR PRODUCERS

James HoferDIRECTOR - HUTTER SCHWEINMember, Sustainable Development and Research CommitteeDirector, Manitoba Livestock Manure Management InitiativeDirector, Manitoba Hog Grading Inc.

Glen GrattonDIRECTOR - MAPLE LEAFMember, Public Relations Committee

Ray HildebrandDIRECTOR - PURATONE

Claude VielfaureDIRECTOR - HYLIFEDirector, Canadian Pork CouncilDirector, Canadian Swine Health BoardMember, National Pork Value Chain Roundtable

Karl Kynoch, CHAIRMANDIRECTOR - WESTMAN Member, Canadian Pork Council (CPC) Trade Advocacy Working GroupMember, CPC Safety Nets CommitteeMember, Provincial Safety Nets Advisory CommitteeEx-Offi cio Member, Industry Performance and Services CommitteeEx-Offi cio Member, Sustainable Development and Research CommitteeEx-Offi cio Member, Public Relations Committee

Rick Bergmann, VICE-CHAIRMANDIRECTOR - EASTMAN Chair, Sustainable Development and Research CommitteeDirector and 2nd Vice-Chair, Canadian Pork Council (CPC)Member, CPC Producer-Processor DialogueMember, CPC Cull Breeding Swine Program OversightMember, Canadian Swine Health Board (CSHB) Biosecurity Advisory CommitteeMember, CSHB Technical Committee

Wendy Friesen, EXECUTIVE MEMBERDIRECTOR - RED RIVER VALLEYChair, Public Relations CommitteeMember, Industry Performance and Services CommitteeMember, Winkler Aquifer RoundtableMember, LaSalle River Watershed Planning Advisory Team

George Matheson, EXECUTIVE MEMBERDIRECTOR - NORTHEASTChair, Industry Performance and Services CommitteeMember, CPC Quality Assurance Advisory CommitteeMember, CPC Quality Assurance Technical Working GroupMember, CPC Animal Care Working GroupMember, CPC Identifi cation and Traceability System Working CommitteeCommodity Representative, Keystone Agricultural ProducersMember, Provincial Agricultural Safety and Health Committee

Board of Directors

Back row (L to R) –Karl Kynoch,

Glen Gratton, David Waldner,

Arian de Bekker, James Hofer,

George Matheson

Front row (L to R) -Rick Bergmann, Wendy Friesen,

Jonathon Boyko

Missing -Claude Vielfaure,

Ray Hildebrand

2011 Annual Report MANITOBA PORK COUNCIL 7

Geographic DistrictsWESTMANKarl KynochBaldur – Director, ChairmanEdward Grenier, St. LeonRick Prejet, Notre DameDon Neufeld, KolaSean Tolton, Kenton

PARKLANDJonathon BoykoSwan River – DirectorHenrik Thomsen, RoblinWim Verbruggen, RiversMartin Sharpe, MinnedosaLawrence Manchur, Gilbert Plains

RED RIVER VALLEYWendy FriesenLowe Farm - DirectorJeroen Van Boekel, Stephenfi eldRuss Penner, WinklerMenno Bergen, Plum CouleeRoger Berard, St. Joseph

NORTHEASTGeorge MathesonStonewall - DirectorDanny Kleinsasser, Stony MountainCalvin Penner, ArgyleDan Van Schepdael, East SelkirkJohn Van Aert, East SelkirkRick Vaags, Dugald

EASTMANRick BergmannSteinbach – DirectorTom Leppelmann, SteinbachMarg Rempel, Ste. AnneGary Stott, NivervilleDan Klippenstein, NivervilleScott Peters, Steinbach

Production DistrictsWEANLING EXPORTERSArian de BekkerWinkler – DirectorTim Hofer, Willow Creek ColonyLeighton Siemens, MorrisLorne Voth, SteinbachJohn Nickel, NivervilleJoe A. Waldner, Maple Grove Colony

NORTH STAR PRODUCERSDavid WaldnerNorquay Colony - DirectorEdwin Hofer, Miami ColonyPhilip Hofer, James Valley ColonyArnie Waldner, Milltown ColonyMike Waldner, Cool Spring Colony

HUTTER SCHWEINJames HoferStarlite Colony - DirectorPeter Hofer, Skyview ColonyJoe Waldner, Sunnyside ColonyGarry Wollman, Clearwater ColonyDave Wollman, Newhaven ColonyMartin Wollman, Springhill Colony

MAPLE LEAFGlen GrattonMaple Leaf Agri Farms - DirectorTodd GurneyNeil BoothChris LawsonDave Kraut

PURATONERay HildebrandThe Puratone Corporation - DirectorWally DriedgerPaul HowarthJohn WielerLyle Loewen

HYLIFEClaude VielfaureHyLife Ltd. - DirectorCarol MartensSheldon StottGuy BaudryDenis VielfaureDave Penner

Delegates serving on committeesPublic Relations CommitteeDanny Kleinsasser (Northeast)Marg Rempel (Eastman)Russ Penner (Red River Valley)

Industry Performance and Services CommitteeJeroen Van Boekel (Red River Valley)Dan Klippenstein (Eastman)Chris Lawson (Maple Leaf)Dean Gurney (Puratone)Carol Martens (HyLife)

Sustainable Development and Research CommitteeRick Prejet (Westman)Sheldon Stott (HyLife)

Directors, Delegates and Districts

8888888888888888888888888888888 8 202020200220202020202020202202020220202020202020202020202002220022020002020000000011111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAnAnAnAnAnAnAnAAnAnAnAnAnAAAAnAAnAAAnAAAAAnAAAnAnAAnAAAAnAnAnAAAnAnnAnAnAnAnAnAAAnnAAnnnununnunununuunununununuuunnunununuunnunuuunuuuunnnunnunuuuunnnnuualalaalalaalallalalalalalaaalalalalalaalaalalaaalaaaaalalaa RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepeepepeepeepepepepepepepepepppepeepeepppepepeppepepepepeppeppepppepepppepeppppppppppppppppppororoooororororoorororoororororororoorororororoororrrororororrrorororooroooooororooorttttttttttttttttttttttttttttttttt ttttttttttttttttttt MANMAMANMMANMANMANMMANMANMANMANMANMMANMANMANNMANMANAAMANAMANNMANM NNMANMANMAMANANNITOITOOITOOTOITOITTOTOITOITOOOOITOOITOOOITOTOOOOTOOTOITOITOOOOOTITOOTOTOTOTOTTOOTTOOBABAABABABABABABABABABAABAABAABABAAAABABAABBABBABA ABBABBBA BA BBBA PORPORRPORPORPORPORPOORORPPORPPORPORPOROOORP RPOPORRPORPORRORRPPORPORRPPORK CKKK CCKKK CCK CK CCK CK CK CKK CKKKK CKK CKKKK CKK CCK CCCOUNOUOOUNOUNOUNOUNOUNNNOUNOUNOUNOUNUUNUOUNOOUNOUNOUNOUNUNOUOOUOOUUU CILCILCILCILCILCILCIILCC LILCCILCILCILLCC LL

EAST DISTRICTDan Klippenstein (Niverville)Scott Peters (Steinbach)Marg Rempel (Ste. Anne)Lorne Voth (Steinbach)Lyle Peters (Randolph)Fred Fast (Landmark)

NORTH STAR PRODUCERS Edward Stahl (Grass River Colony)Arnie Waldner (Milltown Colony)

HUTTER SCHWEIN Joe Waldner (Sunnyside Colony)Garry Wollman (Clearwater Colony)

MAPLE LEAF Neil BoothChris Lawson

PURATONE Lyle LoewenDean Gurney

HYLIFECarol MartensSheldon Stott

At the Annual General Meeting in April 2011, delegates approved changes to Manitoba Pork Council’s Administrative By-law to merge fi ve geographic districts into two districts – the East District representing producers east of the Red River, and the West District representing producers west of the Red River. In 2012, the governance changes will require the election of directors by mail-in ballot and election of directors-at-large at the Annual General Meeting.

The delegate structure has been eliminated and replaced by the election (or appointment) of 22 District Advisors. The major role of District Advisors is to actively represent local producers’ interests, initiate and assist with policy development, and promote and enhance the industry to the general public.

Semi-annual meetings and elections were held in November in Niverville for the East District and Portage la Prairie for the West District. The West District meeting was followed by separate meetings of the two Hutterite Brethren districts – North Star Producers District and Hutter Schwein District.

District Advisors – 2011WEST DISTRICT Jeroen van Boekel (Stephenfi eld)Stan Dueck (Arborg)Danny Kleinsasser (Stony Mountain)Calvin Penner (Argyle)Rick Prejet (Notre Dame de Lourdes)Wim Verbruggen (Rivers)

District Advisors

Back row (L to R) –Calvin Penner, Edward Stahl,

Lorne Voth, Sheldon Stott, Dean Gurney, Scott Peters, Stan Dueck,

Marg Rempel, Arnie Waldner,

Dan Klippenstein, Lyle Peters,

Jeroen Van Boekel

Front row –Gary Wollman,

Wim Verbruggen, Lyle Loewen,

Carol Martens, Joe Waldner,

Rick Prejet

Missing -Danny Kleinsasser,

Fred Fast, Neil Booth,

Chris Lawson

2011 Annual Report MANITOBA PORK COUNCIL 9

Mike TeilletMANAGER, SUSTAINABLE DEVELOPMENT PROGRAMS

Arne ThorlaciusINDUSTRY SERVICES COORDINATOR

Audrey TreichelMANAGER, COMMUNICATIONS AND MEDIA RELATIONS PROGRAMS

Jeff ClarkMANAGER, PIGTRACE CANADA

Jason CareAUDITOR, MANITOBA HOG GRADING INC.

Ron MarchenskiPROGRAM MANAGER, MANITOBA PORK CREDIT CORPORATION

Andrew DicksonGENERAL MANAGER

Julie BairdEXECUTIVE ASSISTANT

Miles BeaudinMANAGER, QUALITY ASSURANCE AND LABOUR PROGRAMS

Mark FynnANIMAL CARE SPECIALIST

Cyndy GoosACCOUNTANT

Laurel LyonsSPECIAL EVENTS COORDINATOR

Diane MillerFRONT DESK COORDINATOR

Susan RieseMANAGER, CONSUMER MARKETING AND COMMUNITY RELATIONS PROGRAMS

Manitoba Pork Council Staff

Back row (L to R) –Mark Fynn, Jason Care,

Arne Thorlacius, Mike Teillet, Andrew Dickson, Ron Marchenski,

Audrey Treichel, Miles Beaudin, Cyndy Goos, Jeff Clark,

Julie Baird

Seated (L to R) – Laurel Lyons, Susan Riese,

Diane Miller

101011001010101010010101010101011001010101000100101010010100 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

which allowed for a varied, yet constant presence. In late November, the campaign ramped up and continued to build the emotional connection between the producer and the urbanite using the holiday season as the common bond.

More advertising bangfor your buck

Leveraging a great relationship with radio partners Hot103 and QX104, MPC launched an interactive web portal on the radio stations’ offi cial websites, where visitors could fi nd mouth-watering pork recipes and enter contests. They could also learn more about Manitoba’s pork industry by viewing the Behind the Barn Door video series and linking to the Family Behind the Farm website.

The centerpiece of this portal was Manitoba Pork TV, featuring 16 two-minute weekly cooking videos. Hosted by radio personalities, pork cooking methods and new recipes from MPC’s grilling guide, King and Queen of the Q, were demonstrated.

We are Part of the Solution campaign

Responding to Bill 46, Manitoba Pork Council launched We are Part of the Solution, a major multi-media advertising campaign, to showcase environmental responsibility. It featured four industry representatives whose jobs focus entirely on ensuring that pork production and manure management is done in an environmentally responsible manner.

This strategic advertising campaign included prime time television and airtime on two of Winnipeg’s top radio stations, as well as bus backs, bus shelters and print advertising in the Winnipeg Free Press. The campaign ran from the end of August to early October, with some media continuing until the end of December. The ads can still be seen on the MPC website and YouTube channel.

MPC rallied further public support through media events in Winnipeg, Neepawa and Steinbach. Council also published Open Letters to Manitobans, which were two full-page ads in the Winnipeg Free Press and in select rural papers. One letter included signatures of organizations representing 15 different commodity groups, and the other incorporated the signatures of prominent business owners. Having these key individuals involved lent tremendous credibility to the cause.

Expanding on the Family Behind the Farm

Building on the success of the Family Behind the Farm campaign in 2010, MPC unveiled a redesigned www.thefamilybehindthefarm.ca website to showcase two new families, and developed eight unique

recipe cards that featured a personal “producer promise.” Elements of this campaign were woven into numerous existing advertising opportunities throughout the year

Public Relations

The Manitoba Pork digital campaign garnered successful

results on Hot103live.com and QX104fm.com: • 7,594 Feature Channel Visitors • 9,812 Feature Channel Views

• 5,799 Cooking Video Views • 913 Contest Visits

SavoryManitoba pork sloppy joes

a laarrge sskilleet or Dutcch ven, hheat oil oovver mmeddiumm--gh hhheat; add ppoorkk, garrlic

nd onnnion. Cookk pork ovver ediuumm heeat unnttil wwellne, aabout 10 mmminuutes.. Sttirr equeently to brreeak k up pporkk.. dd reeemainning ingrredieentss

annd briing tto a ssooft bboil.. Reeduccee heaat, coovver andsimmmeer unttil veeggetaablessaree teennder, abouutt100 miinnutess. Serrvve oover sliicedd ccrustty buunns.

Seervees 4 – 6

Tasty Tip: Prepare sauce a day in advance to enhance its fl avour.

¼ ccup / 550 mmL ssliceed ceeleeryy

1 tsp / 5 mmL ooreggano

ssaucee

11 cupp / 25500 mLL tthickk and d sspicyy ppastaa sauccee

SSalt aand ppeeppeertto tasste

66 cruusty bbuuns

s

1o

The Friesen FamilyLowe FarmManitoba Pork Producers

A 100 g average serving of raw, trimmed Manitoba porkcontains 129 calories, 22 g protein, 3.9 g fat and 0 g carbohydrates.

Sccaan for moreInffoormattion

.ca.cafamilyfamilythethebehindbehindfarmfarmthethe

In 2011, nearly 35,000 Family

Behind the Farm recipe cards were

distributed through independent

butcher shops, trade shows and various

community events.

The proportion of Winnipeggers who strongly agree that pork production is environmentally friendly is at its highest point to date, and the proportion who disagree is at its lowest point.

– We are Part of the Solution post campaign survey

E

Bi

SavoryManitoba pork sloppy joes

In ovvhiggannmeedoonfreeAddann

1 lbb / 0.55 kg leann grouuund Mannitobaa poork

1 Tbbsp / 115 mmL cannola ooill

1 cllove ggaarliic, crusshed

1 cuup / 22550 mmL diceed onnioon

11 cupp / 25500 mLL cchoppped bbeellppeppeer

11 ½ TTsp / 77 ½ mL rred wwine vvvineggar

33 Tbssp / 4455 mLL bbrowwn sugggar

½½ tspp / 2 mmLWWorccesterrsshiree

“Our parents raisedkus on the wholesome nutritious pork

that they produced on the farm. We are proud to carry on that tradition and feed your families the samedelicious pork that we love.”

TThe Friesen FamilyLowe FarmLowe FarmLLowe FarmMMM itManitoba Pork Producrk Producerserss

ManitobaGarlic&RosemaryGarlic&Rosemary

pork roastpork roast

familyythethebehindindfarmfarmthe

Recipes

We are Part of the Solution signage

on the back of buses covered the City of Winnipeg throughout the fall.

2011 Annual Report MANITOBA PORK COUNCIL 11

Over the summer, listeners were encouraged to share stories about upcoming family celebrations for a chance to win one of two Big Backyard Barbecues for 50 people hosted by MPC. This allowed Council to continue the momentum of family messaging, and promote its support of Culinary Team Manitoba, who catered the event.

Spreading the word

Producers were kept informed using existing communication tools, including the bi-weekly Chop Talk e-newsletter, quarterly Horizons newsletter and the website. The pork-loving public stayed connected through episodes of Great Tastes of Manitoba, our Facebook and Twitter pages, YouTube and the PutPorkOnYourFork.com website.

Nearly 45,000 recipe cards were distributed through Retail News, our quarterly meat managers’ newsletter, in addition to the thousands more given away at health and wellness expos, rural fairs, conferences, pork on a bun events and fundraisers. MPC’s new grilling guide, King and Queen of the Q, made its way into consumers’ hands in time for the 2011 grilling season. Nearly 10,000 copies were distributed throughout the summer months. MPC also

distributed 4,800 Where to Buy Manitoba Pork cards, indicating that the “buy local” movement remains strong.

Shaping the future

MPC continued to look for opportunities to encourage students to consider a career in agriculture through several post-secondary scholarships. And, aspiring student chefs were encouraged to keep pork top of mind through pork cook-off competitions at Assiniboine Community College and Red River College’s culinary arts programs. The Grade 10 Challenge school curriculum was another huge success, with more than 90 kits distributed in 2011.

Funding Agriculture in the Classroom was another meaningful opportunity to promote awareness and understanding. Council’s support of the Made-in-Manitoba Breakfast program provides nourishing breakfasts to students across the province while learning where their food comes from.

The public had the chance to become more informed through events like Discover Agriculture in the City at The Forks and live animal displays in Winnipeg and Brandon.

Commitment to the community

MPC made great use of its famous barbecue carts to support a wide range of registered health-minded charitable organizations, including the Canadian Breast Cancer Foundation and CancerCare Manitoba. In 2011, MPC attended 159 events, serving 20,319 pork on a bun sandwiches. That’s in addition to the many fi nancial contributions and pork donations to local registered charities and food banks.

MPC was extremely proud to be the fi rst to sign on as a top-level sponsor for Siloam Mission’s Sponsor the Meal program. The program is an opportunity for local businesses to provide meals to Winnipeg’s less fortunate. MPC was also on hand to dish out pork on a bun at a summer block party for more than 400 people to celebrate the shelter’s 24th anniversary. MPC looks forward to continuing this important community commitment.

MPC’s PR staff (right) and Hot103’s Chrissy Troy (left) helped our June Big Backyard Barbecue contest winners celebrate their special family event.

MPC staff delivered one tonne of hams and pork sausages to Siloam Mission in support of the Sponsor the Meal program.

Through an annual pork cook-off, cash prizes are awarded to top performing student chefs registered in one of the province’s two major Culinary Arts programs.

121211212121212122121212121212112121212122122121212212122 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Pork: protein of choicefor Manitoba athletes

The Pork for Peak Performance (PPP) program made its debut at the 2011 Annual General Meeting and was launched publicly in early June through the Canadian Sport Centre Manitoba. MPC’s sports sponsorships provide the vehicle for delivering the PPP message – that pork is a powerhouse of nutrition. To help reinforce this message, MPC developed a variety of print collateral including an informative PPP brochure and several recipe cards featuring healthy recipes designed with the athlete in mind.

When possible, MPC rewards athletes for determination, success and community citizenship with a monthly Manitoba Pork Peak Performer of the Month certifi cate, awarded to players within the MJHL and CSCM—many of whom advocate on MPC’s behalf.

Towards the end of 2011, MPC developed a tactical plan that will see the PPP program expand in 2012 and promote the program’s tagline, “Fueling Today’s Athletes.”

Manitoba Pork Council continued to enjoy and leverage its partnerships with local sports organizations to help deliver the Pork for Peak Performance message, including:

• True North Sports and Entertainment, which provides tremendous exposure to the public through the eye-catching MPC zamboni and an advertising package with the Winnipeg Jets. This partnership allows MPC to capitalize on the organization’s strong connection to the community.

• A new three-year agreement with the Canadian Sport Centre Manitoba (CSCM), which supports Manitoba’s high-performance athletes in their quest to achieve podium success on national and international levels. MPC works closely with the CSCM on several initiatives that promote pork as the protein of choice for elite athletes.

• A comprehensive advertising and promotional package with the Winnipeg Goldeyes throughout the baseball season, as well as opportunities to support Goldeyes’ Field of Dreams Foundation.

• A great community connection with Curl Manitoba that allows MPC to deliver its messages through high-profi le curling events like the Scotties Tournament of Hearts, as well as Curl Manitoba’s website and e-newsletter.

• A seasonal sponsorship with the Manitoba Junior Hockey League (MJHL) to support rural communities through ice hockey, a long-standing Manitoba tradition.

MPC also helped the Manitoba Moose wrap up their fi nal season in 2011 with ads displayed on the score clock at the

MTS Centre, while the “Manitoba Pork —Locally Grown. Globally Preferred.” ads continued during the evening and late-night sportscasts, including the playoffs.

Pork Sports Promotions

MPC helps make dreams come true with the Goldeyes

by donating proceeds from

pork on a bun sales on its game night

to the Field of Dreams Foundation

in support of children’s charities.

MPC rewards athletes with a monthly Manitoba Pork Peak Performer of the Month certifi cate. MPC has received

media coverage for this program.

Pork for Peak Performance recipe cards showcase a number of athletes, inlcuding Jeff Stoughton, who have lent their names to MPC.

•La

porkforpeakperformance.ca

Fueling Today’s Athletes

Honey Mustard

Pork Tenderloin

porkporrkrkoporkporkforforffor eapeapeaakperfakperfakpe ooormanceormanceeeeormance.caca

Fueling Today’s At l thletesHeartyItalian Soup

“ A hearty, pork-based soup or stew that’s high in protein keeps me feeling full longer so I can focus on a winning performance. ”

Jeff StoughtonWinnipeg, MB

World Champion 1996 and 2011Curling

Scan for more Information

toughtontoughtonWinnipeg,WinWinnipeg MB

W

“ A h

ngng

ngernger so I s on as on a winnin

formformance. ”

This symbol indicates a recipe or menu item is a healthy choice for athletes.

111 - 222 lblblb lb / 0/ 0/ 0 55.5 11- 1 00.0 kgkgkgkg1 2 ggg1 21 lCanCanadiad an kk loinoin roroastastp k loino ro tan iad an kanadianan porpork lk loinoi ro t

2 t2 tspsp / 1/ 10 m0 mL cL canoanolala oiloila oililoil

1 s1 s1 smalmalmall ol ol nion chochoppeppeppeddd, chopall onioall onionion,n, chop

tsp / 5 mL tsp / 51 tsp / 5Italian seasoningngng

19 oz / 540 mL canL can540 540 mL cac‘no salt added’ diced ddedo sao saltlt added

matoes, undrainedmatoetomato

3 c3 cupsupsp // 750750 mLmLsodsodsodiumiumium re-re-reducducducedededhihchichichi kkckeckecke bn bn bn b trotrotrothhhh

191919 ozoz / 5/ 5404040 0 mLmLmLmL cancanncanoz / 5404 mL919 oz / 519 ozoz / 5/ 5404 mLRomRomanoano oror whitete tet or white or hwhiteite kidkidkiddneyy bebeansans dd, d, irairai dnedned neyney bebe dkidkidkidneyne be rai dneirainedned andand ririnsensedddddd

8 o8 oz / 2227 g7 g/ 2278 oz 8 ooz /z / 2227fresh spinach leaves, fresfreshredded

Trim off any visiblelelefat from the pork loin n porkporkrk loin roast; cut inut inut into 3///4-inch 4-i44 i/////cubes. Heat oil in a deepeat oubes.ubes. Heat

epceppanan oveover mr m diediediumum-epcesausaucepahihighighigh hh hh hh h teateateat..hh

BroBroBroB wnwnwn porporpork ck ck cubeubeubes as as andndnndBroB rpork cBBroB wn ppwn porpo k conionionon. AdAdd Id Italtalianian onioioniooseaseasonsoniingingg W. Whhenhen ononiioniionionnionsareare sosoftft, adadd ad allll rer ginggnginn rerll remainninggingi ginging dredrediienientts,ts ets, ets, exxcepcept tspinach; bring to a boil.g to ach; ach; briing gn to Lower heat and simmer eat aLowLower heat a

15 minutes. Stir in 15for 15 shredded spinach andhhcook for 2 minutes more.ore.ore.

Serves 8-100

Nutrition Information: Per ServingNutrition Information: Per ServingCaloriesCalories 174.0 kcal, FatFat 4.2 g total fat (1.2 g saturated, 1.9 g monounsaturated, 0.7 g polyunsaturated), CarbohydratesCarbohydrates 17.4 g, ProteinProtein 17.3 g, FibreFibre 4.8 g, SodiumSodium 213.5 mg, CholesterolCholesterol 24.9 mg

Thi

2011 Annual Report MANITOBA PORK COUNCIL 13

bringing the total for research and institutional development funding to about $7.5 million since 1999.

Most of this funding is intended for swine-related research and educational opportunities. The majority of the funding goes to the University of Manitoba Faculty of Agricultural and Food Sciences, the Manitoba Livestock Manure Management Initiative, and the Prairie Swine Centre. It also funds the Lake Winnipeg Research Consortium to seek better understanding of the causes of and solutions to lake water quality issues.

Working with government

After the provincial government passed legislation in June severely limiting the expansion of hog production in Manitoba, MPC greatly increased its efforts to work with the government in fi nding better ways to deal with perceived environmental issues related to hog farming. This involved signifi cantly increased efforts to assist the public in better understanding the hog sector’s role in safeguarding the environment.

Unveiling Embracing a Sustainable Future

Sustainable development is fundamental to our industry’s success. After almost two years of work, Manitoba Pork Council unveiled its strong vision for long-term sustainability in Embracing a Sustainable Future, a 54-page document that describes 82 commitments by MPC on behalf of the province’s pork producers.

The actions outlined in the document assist in maintaining and improving the industry’s environmentally-sustainable activities over the next several years. The plan takes a holistic approach to development, which includes Integration of Environmental and Economic Decisions, Stewardship, Shared Responsibility and Understanding, Prevention, Conservation and Enhancement, and Global Responsibility. MPC believes the plan will deliver tangible benefi ts for producers and the communities in which we work and live.

Discovery Centre opens its doors

MPC is proud to be part of the Bruce D. Campbell Farm and Food Discovery Centre at the Glenlea Research Station. MPC has contributed more than $600,000 toward the creation of the centre, which demonstrates how food is produced and showcases agricultural practices in Manitoba.

This one-of-a-kind, hands-on facility opened on September 16, and has since attracted more than 2,300 visitors from all walks of life, who

have been able to see for themselves how pigs are raised. It showcases the advances farmers have made in protecting the environment, providing excellent animal care, and producing safe, high-quality food. It also features galleries on crop production, livestock and food safety, along with a classroom for school or professional groups.

Investing in research, investing in success

Continuing its ongoing commitment to research that will help Manitoba pork producers strive to be world leaders, MPC contributed $458,000 towards research and institutional development in 2011,

Sustainable Development and Research

MPC invited MLAs and key

stakeholders to its fi rst-ever reception

at the Manitoba Legislative Building

to launch a major policy document on the long-term

sustainability of the pork industry.

Karl Kynoch,

Chairman, congratulates

Dr. Michael Trevan, Dean of the Faculty of Agricultural and Food Sciences, for

the successful Grand Opening of the

highly anticipated Bruce D. Campbell

Farm and Food Discovery Centre.

Karl Kynoch, Chairman, speaking with Premier Selinger at a Manitoba Pork sponsored Manitoba Chambers of Commerce breakfast.

141411441414141414414141414141411441414141444144141414414144 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

• The newly-formed Workplace Health and Safety Committee developed a strategy to help Manitoba swine farms meet provincial and federal health and safety regulations. In addition, the program strives to minimize accidents to ultimately lower time loss and reduce Workers Compensation Board costs.

Gestation barn conversion

Funding from MPC and the Manitoba Rural Adaptation Council supported research into successfully converting gestation barns into loose housing. The research is considering everything from animal behaviour to engineering to economics, and aims to provide informed and fi nancially feasible options to producers to group-house their gilts and sows. The tangible outcomes will be a “how-to” guide for loose housing, as well as software that generates barn designs and estimates costs. The research is on schedule to wrap up in late 2012.

Canadian Quality Assurance (CQA)

and Animal Care Assessment (ACA)

Manitoba Pork Council was integral to the Pig Code Development Committee’s Codes of Practices for the Care and Handling of Pigs. These practices ensure that new recommendations and requirements are suitable to Canadian pork producers, and the Canadian Quality Assurance (CQA) and Animal Care Assessment (ACA) programs.

The Canadian Pork Council announced that the Animal Care Assessment will be a mandatory part of the Canadian Quality Assurance program starting in 2012. MPC has prepared the industry by ensuring all CQA veterinarians are trained and that an adequate supply of program material is available for all Manitoba producers.

Several farms in Manitoba were audited under the CQA program, with documentation showing high CQA standards on the farms. MPC continues to advocate for needleless technology on farms. With approximately 250 farms using this technology, there has been a dramatic reduction of reported broken needles.

New committees working for producers

Local pork producers were called on to share their extensive knowledge and serve on two committees:

• The Human Resources Committee worked with Human Resources Development Canada to address immigration issues that will improve labour availability. It was also successful in identifying challenges and effecting changes to provincial employment standards.

Industry Performance and Services

272 ACA validations

were completed in 2011, representing

43% of 633 CQA registered producers.

Responsible and humane care is important to

the well-being of pigs. MPC’s animal care, food safety and human resource programs support

the production of high-quality, safe pork that consumers purchase with confi dence.

Electronic Sow Feeders are one of the proposed systems of loose housing being

researched at the National Centre for Livestock and the Environment.

During 2011, Manitoba producers embraced the ACA program, leading the country in participation.

2011 Annual Report MANITOBA PORK COUNCIL 15

Traceability

In partnership with Manitoba Agriculture, Food and Rural Initiatives (MAFRI), MPC issued in excess of 950 Premises Identifi cation Numbers (PIDs) to swine-related locations in Manitoba. These site-specifi c numbers are assigned by MAFRI under Manitoba’s Animal Premises Identifi cation Regulation. This initiative was announced in October 2010 to improve emergency response efforts and contributes to the development of PigTrace Canada (the national swine traceability system). MPC submits land location information to MAFRI for verifi cation on behalf of producers. Once verifi ed, MAFRI assigns a unique PID to the site, which MPC then relays to the industry on MAFRI’s behalf to prevent duplication and confusion.

MPC recently received federal funding support through the Canadian Pork Council’s PigTrace Canada program, which is spearheading the development and implementation of Canada’s swine traceability system. The funding will go towards MPC extension staff for industry education, outreach and fi eld visits supporting the implementation of PigTrace Canada.

MPC is considering funding proposals with MAFRI that will establish provincial pilot projects targeting the use of commonly used information management tools, such as herd management software and mobile phones, for reporting traceability information to the PigTrace Canada program. The intent is to minimize the duplication of data-recording, and encourage innovation throughout the industry as it relates to information management.

Biosecurity training

More than 450 producers received biosecurity training, thanks to a partnership between MPC, the Canadian Swine Health Board (CSHB) and Manitoba Agriculture, Food and Rural Initiatives (MAFRI). This training – part of the National Biosecurity Training Program – helped raise the overall level of biosecurity in the Manitoba pork industry, decreasing disease transmission between farms, and improving overall animal health.

The National Biosecurity Training Program has provided the opportunity for MPC to work closely and strengthen relationships with the CSHB and MAFRI. The greatest accomplishment was the successful launch and continued coordination between the three organizations.

Survey results indicate 78% of hog producers inject their manure directly into the soil, with a further 11% incorporating manure into the soil (working it in) immediately after application.

Producer survey

In February, MPC launched its 2011 producer survey with a dual purpose:

1. To assist in the assignment of Provincial Premises Identifi cation Numbers (PIDs) by collecting premise registration information in accordance with the Animal Premises Identifi cation Regulation.

2. To provide MPC with a greater understanding of the current conditions and structure of the hog production industry within Manitoba in order to improve its ability to lobby government on producers’ behalf and provides services to its members.

At present, roughly 75% of producers have responded to the survey either in part or whole. MPC will be issuing an abridged version of the survey to the remaining producers in 2012 in order to expedite 100% participation.

PigTrace Canada is launching implementation in 2012 as it prepares for mandatory movement reporting, expected to take effect in late 2013.

161611616161616166161616161616116616161616661661616161166 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Peter Clark, independent trade consultant, Andrew Dickson, General Manager of MPC, and Martin Rice, Executive Director of the Canadian Pork Council, represented producers in Washington as they continued their lobbying effort on COOL.

PigTrace Canada

The CPC, the Canadian Food Inspection Agency and provincial pork organizations have been preparing for a draft amendment to the federal Health of Animals Regulation that will mandate swine traceability in Canada, including mandatory animal identifi cation and movement reporting.

Much of 2011 was spent negotiating an Administrator Agreement under this draft amendment to the federal Health of Animals Regulation. The Administrator Agreement will provide the CPC and its provincial members certain authorities and responsibilities under the federal Health of Animals Regulation.

CPC allocated federal funding support to provincial pork organizations for the provincial delivery of the PigTrace Canada program, and also successfully negotiated a long-term contract to develop and deliver PigTrace Canada’s traceability system, including database software and customer service support.

Country of Origin Labelling (COOL)

In September 2008, the United States implemented its COOL legislation on an interim basis, which offi cially came into force in March 2009. Canada (and Mexico) tried through the World Trade Organization (WTO) to mitigate the impact of this legislation to no avail. A WTO panel convened in November 2009, and after two formal hearings in 2010, the panel publicly released its fi nal report in November 2011.

It clearly stated that COOL discriminated against Canadian hogs and cattle because it forced segregation, resulting in higher costs to users of Canadian-origin livestock. The panel found that COOL was a legitimate objective, but the U.S. regulations only created confusion, rather than clarity and accuracy. The WTO therefore asked the U.S. to conform its COOL measures with its obligations under world trade agreements.

The U.S. may appeal the ruling which could delay the resolution of COOL by another 12-18 months. Manitoba Pork Council will continue to assist the Canadian government, which has done an outstanding job trying to solve this dispute.

Canadian Pork Council (CPC)

MPC continued to provide substantial funds to CPC and provide representation with two directors (Claude Vielfaure and Rick Bergmann) and staff on various national committees. CPC played a key role in representing the pork industry to the federal government, managing a number of programs such as CQA and the Hog Farm Transition Program, and developing new bodies such as the Canadian Swine Health Board and PigTrace Canada.

Industry News

Provincial and Federal Agriculture Ministers met with Rick Bergmann, Vice-Chairman, on a new funding program for manure handling systems.

2011 Annual Report MANITOBA PORK COUNCIL 17

Canada Pork International (CPI)

MPC was represented by Arian de Bekker as a director on CPI, and continued to support its programs to market pork to the world. Susan Riese and Andrew Dickson visited the CPI booth at ANUGA in Cologne, Germany – the largest food show in the world, attended by over 70,000 food industry representatives and buyers. By attending this and other international events, the Council looks outside our own borders to learn how other countries market pork in a global economy.

Manitoba Pork Credit Corporation (MPCC)

The Corporation administered the Advance Payments Program with 270 loans involving over $50 million in a Stay of Default, and 28 loans for almost $6 million. The Corporation has made arrangements with the federal government for producers to stay paying off their Stay of Default loan starting in April 2012. Because all the loans are fully guaranteed by the federal government,

MPCC has negotiated a very attractive rate of interest from the Royal Bank of Canada. Further, the federal government pays the interest on the fi rst $100,000 of any loan.

Manitoba Hog Grading Inc.

It was a good year in 2011 for Manitoba Hog Grading Inc. Just look at the numbers:

• Audit scores were up 18% because graders fi ne-tuned their skills.

• Grader audits also slightly increased with a total of 382 audits between the two federal processors in Manitoba.

• Just over 57,000 hogs were selected for the grader audits.

• Cooler audits stayed the same with just under 42,000 hogs audited for the year.

• The average score for graders in Manitoba processors was 98.7%. (A score of 95% or better is needed to continue grading.)

• The average cooler audit score was 98.4%.

The probes, which are calibration-checked fi ve times per day, remained within their acceptable error range for 2011, working out to only 1.1% out of 2%. There were just over 1,100 calibration checks performed on the PG-200 probes and 200 calibration checks for the new PG-207 probes which will be introduced later this year.

Tattoo numbers were recorded during the audits and are confi dentially tracked for the producer upon request. If you have any questions or would like more information, please contact Jason Care at the Council.

Board member George Matheson took part in several media interviews on the trade show fl oor of the Minnesota Pork Congress.

Trade Advocacy project

Maintaining an open border has been a core policy objective of MPC since its inception. MPC had a strong presence at the Minnesota and Iowa Pork Congresses in January, and met with offi cials from state governments, farm organizations and university researchers. Board members also attended the World Pork Expo, met with U.S. farm organizations through CPC, and held private meetings with key decision makers. Andrew Dickson, General Manager, was part of a CPC lobby effort in Washington to talk about the need for free trade and to fi x the COOL program. As well, farm organization leaders from Iowa and Minnesota were hosted at MPC’s 2011 Annual General Meeting.

MPC’s Andrew Dickson, General Manager, and Susan Riese, Manager of Consumer Marketing and Community Relations, visited CPI’s booth at ANUGA, the world’s largest food fair for the retail trade and the food service and catering market.

18181181818181818818181818181811881818181888188181818818188 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

To the Members of Manitoba Pork Council:

We have audited the accompanying fi nancial statements of Manitoba Pork Council, which comprise the balance sheet as at December 31, 2011, and the statements of revenues and expenses, changes in net assets and cash fl ows for the year then ended, and a summary of signifi cant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material

misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of Manitoba Pork Council as at December 31, 2011 and the results of its operations, changes in net assets, and its cash fl ows for the year then ended in accordance with Canadian generally accepted accounting principles.

Independent Auditors’ Report

Winnipeg, CanadaMarch 13, 2012 Chartered Accountants

2011 Annual Report MANITOBA PORK COUNCIL 19

2011 2010 $ $

ASSETSCurrentCash 599,214 476,382

Short-term investments [note 2] 3,744,173 3,826,293

Accounts receivable [notes 4, 7 and 8] 787,119 658,371

Prepaid expenses and deposits 52,283 94,229

5,182,789 5,055,275

Capital assets [note 3] 206,177 217,010

Investment in joint venture [note 4] 31,627 28,308Trademark 1,964 —

5,422,557 5,300,593

LIABILITIES AND NET ASSETSCurrentAccounts payable and accrued liabilities [note 5] 1,490,999 1,295,136

Commitments [note 11]

Net assetsInvested in capital assets 206,177 217,010

Crisis Management Fund 300,000 300,000

Closure Fund 550,000 550,000

Unrestricted 2,875,381 2,938,447

3,931,558 4,005,457

5,422,557 5,300,593

Approved on behalf of the Board:

Director Director

Balance Sheetas at December 31, 2011

20202202020202202022002022020202202020202020202000200202020020200 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Invested Crisis in capital Management Closure 2011 2010 assets Fund Fund Unrestricted Total Total $ $ $ $ $ $

Net assets, beginning of year 217,010 300,000 550,000 2,938,447 4,005,457 3,958,379

Excess (defi ciency) of revenues over expenses (82,034) — — 8,135 (73,899) 47,078

Transfer for capital asset 71,201 — — (71,201) — —purchases

Net assets, end of year 206,177 300,000 550,000 2,875,381 3,931,558 4,005,457

Statement of Changes in Net Assets For the year ended December 31, 2011

2011 Annual Report MANITOBA PORK COUNCIL 21

2011 2010 $ $

REVENUEBreeding stock levy 3,700 3,337Investment and other [notes 2 and 4] 205,042 220,088Market hog levy 3,581,535 3,529,853Program 56,525 72,551Weanling levy 393,040 384,305 4,239,842 4,210,134

EXPENSESAnimal care 51,180 20,080Consumer marketing 63,254 31,608Environmental stewardship 195,000 195,000Foreign animal disease readiness 19,388 15,468Human resources and training 7,613 5,400Industry association 660,329 611,676Public relations 1,234,707 1,085,278Quality assurance 3,536 8,462Sustainable development 131,419 68,634Swine production research 96,000 215,000Trade advocacy 65,912 61,887Workplace safety and health 35,055 17,411 2,563,393 2,335,904

Program salaries and administration expenses [schedule 1] 1,645,300 1,608,411

4,208,693 3,944,315

Excess of revenues over expenses before other items 31,149 265,819

OTHER ITEMSAmortization (82,034) (108,919)Country of Origin Labeling campaign costs (6,333) (8,320)Bruce D. Campbell Farm and Food Discovery Centre funding [note 9] (20,000) (100,000)Share of excess (shortfall) of revenues over expenses of Manitoba Hog Grading Inc. 3,319 (1,502)

(105,048) (218,741)

Excess (defi ciency) of revenues over expenses (73,899) 47,078

Statement of Revenue and ExpensesFor the year ended December 31, 2011

22222222222222222222222222222222222222222222222222222222222222 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

2011 2010 $ $

OPERATING ACTIVITIESExcess (defi ciency) of revenues over expenses (73,899) 47,078

Loss (income) from investment in joint venture (3,319) 1,502

Amortization 82,034 108,919

Change in fair value of short-term investments (39,134) (121,736)

(34,318) 35,763

Changes in working capital accounts

Accounts receivable (128,748) 281,301

Prepaid expenses and deposits 41,946 (48,849)

Accounts payable and accrued liabilities 195,863 679,593

74,743 947,808

INVESTING ACTIVITIESPurchase of short-term investments — (658,429)

Proceeds from short-term investments 121,254 —

Additions to capital assets (71,201) (83,513)

Additions to trademark (1,964) —

48,089 (741,942)

Increase in cash resources 122,832 205,866

Cash resources, beginning of year 476,382 270,516

Cash resources, end of year 599,214 476,382

Statement of Cash FlowsFor the year ended December 31, 2011

2011 Annual Report MANITOBA PORK COUNCIL 23

2011 2010 $ $

Bad debts — 23,605

Board [note 6] 184,435 194,876

Business tax 3,067 3,067

Computer support 78,164 53,278

Conferences 5,639 5,500

Employee benefi ts [notes 1 and 10] 117,398 110,233

Employee training 2,418 2,556

Insurance 8,557 10,356

Maintenance 24,407 20,738

Meetings 127,831 124,688

Memberships and subscriptions 13,647 12,292

Miscellaneous 16,021 24,114

Offi ce supplies 26,039 29,904

Postage 12,036 8,936

Professional fees 59,995 115,780

Rent/lease [notes 4, 8 and 11] 62,180 59,900

Program and administrative salaries 802,120 697,862

Telephone 34,239 32,983

Travel 53,549 64,506

Utilities 13,558 13,237

1,645,300 1,608,411

Schedule 1 Program Salaries and Administration Expenses

For the year ended December 31, 2011

24242242424242242422442422424242242424242424242444244242424424244 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

1. SIGNIFICANT ACCOUNTING POLICIES[a] Operations of Manitoba Pork Council

Manitoba Pork Council (“the Council”) is the membership association of the Province of Manitoba’s hog producers. The mission of the Council is to foster the sustainability and prosperity of the pork industry for the good of all hog farmers and all Manitobans.

The Council collects a $0.80 (2010 - $0.80) levy on market hogs produced and processed in Manitoba, including sows and boars. As well, a levy is collected on hogs involved in inter-provincial and export trade at $0.80 (2010 - $0.80) on market hogs, sows and boars and $0.19 (2010 - $0.19) on weanlings (hogs under 30 kgs). The levy is subject to periodic review and approval by the Manitoba Farm Products Marketing Council. The levy is the major revenue source for the Council’s operation.

The Council is a not-for-profi t organization and is not subject to tax under the provisions of the Income Tax Act (Canada).

[b] Revenue recognition

The Council follows the deferral method of accounting for revenue and its net assets. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Levy revenue is recognized in the year that hogs are processed or exported, provided collection of the levies is probable.

Interest revenue is recognized as earned.

Net assets are accounted for in the categories described below to recognize various restrictions imposed on the use of the Council’s funds:

[i] Invested in capital assetsThese net assets consist of the Council’s investment in its capital assets.

[ii] Crisis Management FundThe Crisis Management Fund was established to offset the unforeseen irregularity of levy revenue and address unforeseen

emergencies. In 2007, the Council determined that $150,000 of the Crisis Management Fund would be utilized with respect to the Country of Origin Labeling campaign costs. In 2008, the Council determined that the remaining $150,000 of the Crisis Management Fund would be utilized with respect to the Country of Origin Labeling campaign costs. In 2009 the Council replenished the Crisis Management Fund to its original balance of $300,000.

[iii] Closure FundThe Closure Fund was established to allow the Council to meet all outstanding obligations in the event of a wind-up of operations.

[iv] UnrestrictedUnrestricted net assets are comprised of the net accumulated revenue and expenses of the general operations of the Council, less amounts transferred to the Crisis Management Fund and the Closure Fund and amounts transferred for capital purchases.

[c] Short-term investments and investment income

Publicly-traded securities (Canadian equities) are valued based on the latest bid prices and money market funds are valued based on reported unit values. Corporate and government fi xed income bonds are valued based on reported unit values plus accrued income, which approximates fair value. Transactions are recorded on a trade date basis and transaction costs are expensed as incurred.

Investment income, which consists of interest, dividends and realized and unrealized gains and losses, is included in investment and other revenue in the statement of revenue and expenses.

Notes to the Financial StatementsFor the year ended December 31, 2011

2011 Annual Report MANITOBA PORK COUNCIL 25

[d] Capital assets

Capital assets are stated at cost less accumulated amortization. Normal maintenance and repairs are expensed as incurred. Amortization is provided over the estimated useful lives of the assets as follows:

Computer equipment ..................30% declining balanceand vehicles

Computer software .....................25% straight-lineand website development

Furniture and equipment ..........20% - 30% declining balance

Leasehold improvements ..........10% straight-line

[e] Trademark

The Council’s trademark represents an intangible asset not subject to amortization. Intangible assets not subject to amortization are recorded at cost, less any provision for permanent impairment. Impairment is tested if events or changes in circumstances indicate that the asset may be impaired. The impairment test consists of a comparison of the carrying value of the Council’s intangible asset with its fair value, and any excess is recorded as a charge to net earnings. Fair value of the Council’s intangible assets is determined through a discounted cash fl ow analysis. As at December 31, 2011, no impairment was noted.

[f] Investments

Joint venture

The investment in Manitoba Hog Grading Inc. is a non-share joint venture interest. The investment is accounted for by the equity method. Under this method, the Council included in income its share of the excess (shortfall) of revenue over expenses of Manitoba Hog Grading Inc.

Controlled organizations

The results of the controlled organizations are not consolidated and are disclosed in the notes to the fi nancial statements. Contributions made by the Council to these organizations are expensed as incurred. Controlled organizations include Swine Research and Development Corporation and Manitoba Pork Credit Corporation.

[g] Retirement allowances and pension costs and obligations

The Council provides retirement allowances and pension benefi ts to its employees.

Retirement allowances are provided to certain qualifying employees and are based on Manitoba Government Employees’ Union guidelines. The benefi ts are provided under a fi nal pay plan. The costs of benefi ts earned by employees are charged to expenses as services are rendered. The costs are actuarially determined using the projected benefi t method and refl ect management’s best estimates of the length of service, salary increases and ages at which employees will retire. In addition, adjustments arising from plan amendments, changes in assumptions, and the actuarial present value of the accrued entitlement are being amortized to expenses on a straight line basis over the expected average remaining service life of the employee group. Actuarial gains and losses are recognized in income immediately.

Employees of the Council are provided pension benefi ts by the Civil Service Superannuation Fund (the “Fund”). Under paragraph 6 of the Civil Service Superannuation Act, the Council is described as a “matching employer” and its contribution toward the pension benefi ts is limited to matching the employees’ contributions to the Fund. The Council’s contribution for the year was $33,164 (2010 - $41,874) and is included in employee benefi ts expense.

In addition, employees of the Council are entitled to enhanced pension benefi ts. A pension liability has been established for those employees whose annual earnings exceed the limit under the Civil Service Superannuation

Notes to the Financial StatementsFor the year ended December 31, 2011

26262262262622626226626226262622626262626262626662662626262266 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Fund Plan. The Council’s contribution for the year was approximately $8,370 (2010 - $4,512) and is included in the calculation of employee benefi ts expense. The cost is actuarially determined using the projected benefi t methods and refl ects management’s best estimate of salary increase and the age at which the employee will retire.

[h] Program expenses

Program expenses are reported separately from program revenue. Some programs have related income from grants or industry contributions, which are recorded as revenue.

[i] Financial instruments

Financial instruments include cash, short-term investments, accounts receivable, and accounts payable and accrued liabilities.

The Canadian Institute of Chartered Accountants (“CICA”) Handbook Section 3861, “Financial Instruments - Disclosure and Presentation” requires the Council to make the following classifi cations:

Cash and short-term investments are classifi ed as assets “held for trading” and are measured at fair value. Gains and losses resulting from periodic revaluation are recorded in excess (shortfall) of revenue over expenses for the year;

Accounts receivable are classifi ed as “loans and receivables” and are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method; and

Accounts payable and accrued liabilities are classifi ed as “other fi nancial liabilities” and are initially recognized at fair value and subsequently carried at amortized cost using the effective interest rate method.

[j] Measurement uncertainty

The preparation of fi nancial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the fi nancial statements, and the reported amounts of revenues and expenses during the reporting period.

Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated useful lives of capital assets.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in excess of revenues and expenses in the periods in which they become known.

[k] Recent accounting pronouncements Canadian accounting standards for not-for-profi t organizations

In October 2010, the Accounting Standards Board (AcSB) approved the accounting standards for private sector not-for-profi t organizations (NFPOs) to be included in Part III of the CICA Handbook-Accounting (“Handbook”). Part III will comprise:

The existing “4400 series” of standards dealing with the unique circumstances of NFPOs, currently in Part V of the Handbook; and

The new accounting standards for private enterprises in Part II of the Handbook, to the extent that they would apply to NFPOs.

Effective for fi scal years beginning on or after January 1, 2012, private sector NFPOs will have the option to adopt either Part III of the Handbook or International Financial Reporting Standards (IFRS). Earlier adoption is permitted. The Council expects to adopt Part III of the Handbook as its new fi nancial reporting standards. The Council has not yet determined the impact of the adoption of Part III of the Handbook on its fi nancial statements.

Notes to the Financial StatementsFor the year ended December 31, 2011

2011 Annual Report MANITOBA PORK COUNCIL 27

Notes to the Financial StatementsFor the year ended December 31, 2011

2. SHORT-TERM INVESTMENTSShort-term investments consist of the following:

The Council is subject to market price risk and interest rate price risk with respect to its short-term investments portfolio. To manage these risks, the Council has estimated a target mix of investment types designed to achieve the optimal return within

reasonable risk tolerances. Unless otherwise stated, it is management’s opinion that the Council is not exposed to signifi cant currency or credit risks arising from its fi nancial instruments.

2011 2010 Fair value Cost Fair value Cost $ $ $ $

Money market funds 200,657 200,119 875,124 875,124

Government fi xed income bonds of 2,206,866 2,092,757 1,652,512 1,579,4102.00% to 5.00% (2009 – 4.00% to 5.70%) maturing February 2012 to June 2020 (2009 – May 2010 to June 2029)

Corporate fi xed income bonds of 259,155 257,768 356,324 338,6444.65% to 7.05% (2009 – 3.70% to 6.00%) maturing January 2012 to June 2030 (2009 – July 2010 to December 2021)

Equities, Canadian 1,077,495 955,069 942,333 833,790

3,744,173 3,503,713 3,826,293 3,626,968

3. CAPITAL ASSETSCapital assets consist of the following: 2011 2010 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value $ $ $ $ $ $Computer equipment 375,023 291,566 83,457 346,053 263,583 82,470and vehicles

Computer software 349,889 281,410 68,479 319,776 255,859 63,917and website development

Furniture and equipment 303,147 260,418 42,729 303,147 248,739 54,408

Leasehold improvements 465,854 454,342 11,512 453,736 437,521 16,215

1,493,913 1,287,736 206,177 1,422,712 1,205,702 217,010

Government fi xed income bonds of 2.00% to 5.00% (2010 – 2.00% to 5.00%) maturing February 2012 to June 2020 (2010 – February 2012 to June 2020)

Corporate fi xed income bonds of 5.06% to 6.00% (2010 – 4.65% to 7.05%) maturing December 2012 to July 2013 (2010 – January 2012 to June 2030)

2828228228282282822882822828282282828282828282888288282828828288 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Notes to the Financial StatementsFor the year ended December 31, 2011

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2011 2010 $ $Accounts payable 732,414 461,473Accrued salaries and vacation pay 105,102 100,370Accrued retirement benefi ts 193,148 183,636Goods and Services Tax payable 7,513 –Western Economic Diversifi cation Canada project funds 152,930 537,282Agricultural Sustainability Initiative project funds – 12,375Barn Conversion to Sow Group Housing 8,120 –National Centre for Livestock and the Environment - Sustainable Nutrient Management 17,000 –Canadian Swine Health Board - Swine Farm Training 102,669 –Canadian Swine Health Board - Mass Euthanasia for Swine 77,220 –Canadian Swine Health Board - Mortality Insurance 94,883 – 1,490,999 1,295,136

4. INVESTMENT IN JOINT VENTUREThe Council has entered into a joint venture agreement with two Manitoba pork processors, which established Manitoba Hog Grading Inc. Manitoba Hog Grading Inc. is a not-for-profi t entity which was established to perform audits on carcass grading profi ciency of federally inspected pork processing plants.

A fi nancial summary of the Council’s 50% interest in this entity as at December 31 and for the years then ended is as follows:

2011 2010 $ $

Financial positionAssets 42,531 36,981Liabilities (10,904) (8,673)Net assets 31,627 28,308

Results of operationsRevenue 52,410 52,072Expenses (49,091) (53,574)Excess (shortfall) of revenues over expenses 3,319 (1,502)

Cash fl owsCash provided by (used in) operating activities 7,696 3,415

At December 31, 2011, there was a balance of $11,833 (2010 - $11,648) owing from Manitoba Hog Grading Inc. to the Council. The amount is included in the Council’s accounts receivable.

The Council charges Manitoba Hog Grading Inc. $1,800 (2010 - $1,800) for rent and $4,800 (2010 - $4,800) for administration. The rental income is netted against rent/lease expense and the

administration income is included in investment and other revenue. These transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

2011 Annual Report MANITOBA PORK COUNCIL 29

The Board consists of eleven Directors (2010 - eleven directors). The Chairman’s remuneration is a combination of a $16,500 (2010 - $13,200) annual stipend, plus a per diem. The per diem rates are $275 (2010 - $220) for the Chairman and $250 (2010 - $200) for Directors.

The Vice-Chairman receives an annual stipend of $8,250 (2010 - $6,600) and executive members receive an annual stipend of $5,500 (2010 - $4,400) in addition to per diems.

The Executive Committee is comprised of the Chairman, Vice-Chairman and two Executive members.

The schedule excludes expenses of $27,382, including $17,200 in per diems (2010 - $41,501, including $11,700 in per diems) that were reimbursed by the Canadian Pork Council.

Notes to the Financial StatementsFor the year ended December 31, 2011

6. BOARD MEMBERS’ REMUNERATION AND DISBURSEMENTSBoard members’ remuneration and disbursements consist of the following:

2011 2010

Stipend MPC CPC and Days Days per diem Expenses Total Total $ $ $ $ $

Westman District [Chairman] 88.50 7.50 39,488 27,099 66,587 63,687Eastman District [Vice-Chairman] 44.50 39.50 24,782 7,118 31,900 25,280Red River Valley District [Executive] 32.00 0.00 12,518 6,483 19,001 17,168Northeast District [Executive] 52.50 6.00 18,168 10,072 28,240 16,771North Star Producers District 7.50 0.00 1,650 395 2,045 3,254Hutter Schwein District 24.50 0.00 5,500 4,210 9,710 9,837Maple Leaf District 13.50 0.00 – 435 435 351Puratone District 10.00 0.00 2,275 1,196 3,471 2,359HyLife District 5.50 23.50 1,100 1,243 2,343 5,639Weanling District 11.50 9.50 4,750 2,682 7,432 6,831Parkland District 17.00 0.00 3,850 9,421 13,271 29,632Old District 2 0.00 0.00 – – – 3,613Old District 3 0.00 0.00 – – – 6,137Old District 7 0.00 0.00 – – – 4,317 307.00 86.00 114,081 70,354 184,435 194,876

30303303030303303033003033030303303030303030303000300303030030300 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Notes to the Financial StatementsFor the year ended December 31, 2011

7. SWINE RESEARCH AND DEVELOPMENT CORPORATIONThe Swine Research and Development Corporation (“SRDC”) was incorporated in 2006 and the Council is the sole shareholder. The SRDC is a not-for-profi t, non-taxable organization and its undertakings are limited to providing or facilitating research or development initiatives of benefi t to the breeding, raising or marketing of hogs, and to researching, investigating, gathering and distributing educational information on matters of interest to hog producers. In the event that the SRDC should at any time be wound up or dissolved, the remaining property and/or assets of the SRDC, after payment of all debts and liabilities, shall be distributed to the University of Manitoba, Faculty of Agricultural and Food Sciences for use in research relating to hogs by the Department of Animal Science. In 2005 and prior years, this entity was a consortium which had been established by the Council, the Government of Manitoba, and the University

of Manitoba, Faculty of Agricultural and Food Sciences. The operations were wound up on March 31, 2007. On February 16, 2010, grant funds were received which paid off the debt to the Council in full.

In 2011, the Council did not contribute (2010 - no contributions) to the SRDC. At December 31, 2011, there was no balance owing (2010 - no balance owing) from the SRDC to the Council.

The SRDC has not been consolidated in the Council’s fi nancial statements. A fi nancial summary of this unconsolidated entity as at December 31 and for the years then ended are as follows:

2011 2010 $ $

Financial positionAssets 10 10

Net assets 10 10

Results of operations

Revenues — 51,914

Excess of revenues over expenses — 51,914

2011 Annual Report MANITOBA PORK COUNCIL 31

Notes to the Financial StatementsFor the year ended December 31, 2011

8. MANITOBA PORK CREDIT CORPORATIONManitoba Pork Credit Corporation (“MPCC”) was incorporated on July 24, 2007 and has no authorized share capital.

MPCC’s Board of Directors is the same as that of the Council. MPCC’s undertakings are limited to conducting programs to assist hog producers in the production of hogs in Manitoba, the marketing of such hogs, and in stimulating, increasing and improving the economic well-being of the hog industry in Manitoba. In the event of the dissolution or wind-up of MPCC, the remaining property of MPCC, after payment of all debts and liabilities, shall be distributed to the Council or a similar not-for-profi t organization in Manitoba.

At December 31, 2011, there was a balance of $227,123 (2010 - $240,428) owing from MPCC to the Council. This amount is included in the Council’s accounts receivable.

MPCC has not been consolidated in the Council’s fi nancial statements.

A fi nancial summary of this unconsolidated entity as at December 31 and for the years then ended are as follows:

2011 2010 $ $

Financial positionAssets 54,538,346 55,171,227

Liabilities (54,738,866) (55,348,517)

Net assets (200,520) (177,290)

Results of operationsRevenues 832,246 664,283

Expenses (855,476) (689,076)

Excess (defi ciency) of revenues over expenses (23,230) (24,793)

The comparative fi gures as at December 31, 2010 and for the year then ended have been adjusted to agree to the audited fi nancial statements for the year ended December 31, 2010, which received an unmodifi ed auditors’ report dated June 30, 2011.

MPCC has available overdraft facilities totalling $90,000,000 with Royal Bank of Canada (“RBC”) and $60,782 with Steinbach Credit Union (“SCU”) (2010 - $108,000,000 with RBC and $152,291 with SCU), of which $54,506,419 was utilized as at December 31, 2011 (2010 - $55,105,226) in order to deliver the Advance Payments Program under the Agricultural Marketing Program Act of Canada to swine producers in Manitoba, Saskatchewan, Alberta and British Columbia. These advance payments are guaranteed in their entirety by the Federal Government of Canada. The facilities bear interest at prime minus 0.3% for RBC balances, and prime minus 0.625% for SCU balances (2010 - prime minus

0.3% for RBC balances, and prime minus 0.3% for SCU balances).

$60,782 in default loans (2010 - $155,505) will remain at SCU until such time they are paid.

During the year, the Council charged MPCC $1,890 (2010 - $1,890) for rent and $5,040 (2010 - $5,040) for administration. The rental income is netted against rent/lease expense and the administration income is included in investment and other revenue. These transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

32323323323233232332232332323233232323323232322322323232232322 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

Notes to the Financial StatementsFor the year ended December 31, 2011

In 2006, the Council agreed to provide $600,000, in the amount of $200,000 per year commencing in 2007, to fund the Bruce D Campbell Food and Discovery Centre. In the event the Council does not possess the necessary funds to meet the obligation, it may increase funding in a subsequent year. In 2011, the Council

contributed $20,000 (2010 - $100,000). Cumulative contributions totalling $620,000 have been made to December 31, 2011, thus the obligation has now been met.

10. RETIREMENT AND PENSION OBLIGATIONSThe Council measures its accrued benefi t obligation for the retirement allowances as at December 31 of each year.

The most recent actuarial valuation report was at December 31, 2010. Actuarial valuations are required every three years.

[a] Information about the Council’s retirement allowance plan is as follows:

2011 2010 $ $

Accrued benefi t obligationBalance, beginning of year 44,221 53,600

Current service cost 6,776 8,430

Interest cost 2,818 3,675

Experience (gain) loss and transitional adjustment 192 (21,484)

Balance, end of year 54,007 44,221

The Council’s retirement allowance expense consists of the following:

2011 2010 $ $

Current service cost 6,776 8,430

Interest cost 2,818 3,675

Experience (gain) loss and transitional adjustment 192 (21,484)

Balance, end of year 9,786 (9,379)

9. BRUCE D. CAMPBELL FARM AND FOOD DISCOVERY CENTRE

2011 Annual Report MANITOBA PORK COUNCIL 33

The Council’s enhanced pension expense consists of the following: 2011 2010 $ $

Current service cost — 1,873

Interest cost 8,884 12,936

Employer benefi t payments (8,370) (4,512)

Experience (gain) loss and transitional adjustment (788) (59,382)

Balance, end of year (274) 49,085

The signifi cant actuarial assumptions adopted in measuring the Council’s pension obligations are as follows:

2011 2010 % %

Discount rate 6.00 6.00

Rate of compensation increase 2.75 2.75

Notes to the Financial StatementsFor the year ended December 31, 2011

The signifi cant actuarial assumptions adopted in measuring the Council’s retirement allowance obligation are as follows: 2011 2010 % %Discount rate 6.00 6.00

Rate of compensation increase 2.75 2.75

[b] Information about the Council’s enhanced pension benefi t plan is as follows:

2011 2010 $ $

Accrued benefi t obligation

Balance, beginning of year 139,415 188,500

Current service cost — 1,873

Interest cost 8,884 12,936

Employer benefi t payments (8,370) (4,512)

Experience (gain) loss and transitional adjustment (788) (59,382)

Balance, end of year 139,141 139,415

34343343434343343433443433434343343434343434343444344343434434344 200202020202220202020202020200000202020020202000020202020202020002002020220202200202000220000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111 AnAAnAnAnAnAnAnAnAAnAnAAnAAnAnAAAAAAnAnnAAnAnAAnAAAnAnAAAAAnAnAAAnAnAAAnnnAnAAnnnuunununnnununununununnunuunnununununnuunnnuunununuunnnuununnuuunuununnuuualalallalalalalalalalalalalalalalalalaalallalalallll RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRepepeppppeppepepepepeppepepeppepeppepppepepppepeepepeppeppepepppepepepeppepepepeppepepepepepepepeppppppppppporrrrororrororororrorororrororororroroorororoororororoorrorrrororrooroorrroororrororororooorortttttttttttttttttttttttttt tttt MANMANMAMANAMANMANMANAMANMMANMANAMANMANAMANMANMANMANMANMM NMANMANMAAAMANNMANMANMANANNNANNITOITOIITTOTOITOTOTOTOITOTOITOITOITOIIITTOTITOITOITOITOTITOIITOITOITOOOTOTOITOTOOTOOOOOBABABABABABAABBABAAABABABABABAABABBABABBBABABBA BABABBBBA BBA POROORORPORPOROPORPORPORPORPORPORPORORRPORPORORP RRORPORORPORORPOORPORPOOOOPOOOOOPPOROO K CCCK CKKK CK CK CK CK CK CK CK CK CKK CK CK CCK CKKK CCCOOUNOUNOUNUNOUNOUNOUNOUNOUNOUNOUNOUOOUNOUNOUNOUNOUOUOOOOOUUNCILCILCILCILCILCILCILLCILCILCILCILCILCILILCCILLCILCC L

12. CAPITAL MANAGEMENTIn managing capital, the Council focuses on liquid resources available for operations. The Council’s objective is to have suffi cient liquid resources to continue operating despite adverse fi nancial events and to provide it with the fl exibility to take advantage of opportunities that will advance its purposes. To offset the unforeseen irregularity of levy revenue and address unforeseen emergencies, the Crisis Management Fund was established. In addition, the Closure Fund was established to allow the Council to meet all outstanding obligations in the event of a wind-up of operations. The need for suffi cient liquid resources is considered in the preparation of an annual budget and in the monitoring of cash fl ows and actual operating results compared to the budget. As at December 31, 2011, the Council has met its objective of having suffi cient liquid resources to meet its current obligations. There have been no signifi cant changes in the Council’s capital management objectives, policies and processes during the period.

Notes to the Financial StatementsFor the year ended December 31, 2011

11. COMMITMENTSThe Council is committed, under operating leases, to future aggregate lease payments estimated to be as follows for the next three years:

$2012 74,049

2013 74,736

2014 15,570

164,355

Lease commitments include a share of common area costs which approximate $29,736 per year.

familyfamilythethebehindbehindfarmfarmthethe

Recipes

Meet the Falk family and other pork producers, and discover some of their family favourite recipes at

.cafamilyfamilythebehindbehindfarmthe

Scan to discover family favourite recipes

FamilyBehindFarm

Niverville, MB– Manitoba Pork Producers

The FalkFamily

Tickled Pink

manitobapork.com

.ca.cafamilyfamilythebehindbehindfarmfarmthe