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Annual Report 2004
Ontario Asparagus Growers' Marketing Board 2004, Annual Meeting
December 10-11, 2004
Quality Inn, Woodstock
Agenda
Chairman's Report
General Manager's Report
District Reports
Acreage Reports
Seed Production Report
Seed Research Report
Financial Statements
MEETING OF THE ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
2004 Annual Meeting
Quality Inn, Woodstock
AGENDA
Friday, December 10, 2004 Birch Room
| 6:00 p.m. | Reception for Growers (Light Refreshments) CD Launch |
| 7:00 p.m | Asparagus Industry in Peru Dr. Alan Schreiber, Executive Director, Washington Asparagus Commission |
| 8:00 P.M. | Presentation to outgoing Chair, Ed DeHooghe Food and Refreshments |
Saturday, December 11, 2004
Vansittart A
| 8:30 a.m.. | Welcome by Chairman, Ed DeHooghe |
| 8:45 a.m. | Minutes of Meeting of November 22, 2003 |
| 9:00 a.m.. | Auditors Report Doug Murphy, C.A. |
| 9:15 a.m. | District Reports - District #1 - District #2 - District #3 - District #4 - District #5 |
| 9:40 a.m. | General Manager's Report Denton Hoffman, P.Ag. |
| 9:50 a.m. | Confirmation of Directors and Committee Members |
| 10:00 a.m. | Annual Report |
| 10:15 a.m. | Resolutions and New Business |
| 10:45 a.m. | Michigan Research John Bakker, Executive Director, Michigan Asparagus Advisory Board |
| 11:30 a.m. | Transition from Processing in Washington Dr. Alan Schreiber |
| 12:15 p.m. | LUNCH (Board Meeting concurrently to elect positions-Board Room 202) |
| 1:00 P.M. | Marketing Round Table Discussion Brenda Lammens, Douglas Gunn, Ken Wall, Katherine Cooper |
| 1:30 p.m. | New Varieties Dr. David Wolyn, University of Guelph |
| 1:45 p.m. | Plastic mini tunnels on European asparagus production Paul Banks, Technician, University of Guelph |
| 2:15 p. m. | Direct Seeding Jeff Wilson and Committee (Arpad Pasztor, Mike Kungl) |
| 2:45 p.m. | Chair's Report and Reflection Ed DeHooghe Announcement of New Chair Adjourn Hospitality Hour in Room 560. |
Chairman's Report
Four years has gone by quickly. It would seem that our industry has seen more change in the last four years than the past 40.
As a grower group, we have had to react to these changes. We have seen the processing industry dry up, but we found new opportunities in the fresh market. This has led to a change in the container size, which in turn has led to an expanded market abroad. We can now pack a longer product giving us higher yields. It would seem for every action there is a reaction, and this will continue to happen. In 2005, our growers will be faced with double banding. When asked by a grower, Will this give me higher returns?", my answer is, unfortunately, no. But it will help retain your share of the world market. If we don't meet the challenge, someone else will. I think we need to realize that we are part of a world market and not a cottage industry.
We listened to growers and downsized our administration by partnering with the Ginseng Association. Growers still support the idea of an organized group, but not at any cost; and I believe we have accomplished this.
Though the results are slow in coming, the breeding program continues to be a success story. Our largest success has been in Canada and the United States, but we have a foothold in New Zealand, and now in Europe. When we have talked research in the past, it has been centered on breeding. Now we will be focusing on innovations such as plastic row covers, direct seeding and nutrient uptake. Food Safety will become as essential an issue as our container size, banding or diameter grading. At this point in time, it would seem a minority of growers is participating, but the reality is the majority of acreage is involved. We need to be pro-active so we end up with an affordable program.
I would like to express my appreciation to the growers and directors for giving me the opportunity to stand as Chairman for the past four seasons. I have been fortunate in working with a good staff. Initially, Jackie and Joanne were in the Strathroy office. I found the decision to close the Strathroy office was one of my most difficult responsibilities. Setting up shop in Simcoe has had a centralizing effect on our industry. The office is central to the largest growing area and our research facilities, seed business and storage.
I would like to thank Melodie for her cheerful disposition. We need to realize what a huge challenge it has been to restructure the office of not one, but two organizations.
I thank Denton for showing me the ropes. He has been great to work with and a supportive, informative General Manager. Once the position of General Manager was filled, the responsibilities of the day-to-day headaches to both Ken Spriet and myself were greatly reduced. Denton's insight into the workings of our government is invaluable. As the demands at home become greater, this type of position in a commodity group becomes essential.
I would also like to thank my family, Sandy, Rebecca and Brian for putting up with the added pressures that this position creates and the added pressures at home.
I would like to wish the growers continued success and all the best in 2005.
Ed DeHooghe
General Manager's Report
Recently someone said to me, "You've only got asparagus to worry about for a couple of months of the year." Asparagus and its issues-including seed, new varieties, research, crop protection and strategic planning-never stops. It's exciting, interesting and challenging year round.
It's been a pleasure to serve as General Manager of the Ontario Asparagus Growers' Marketing Board. The sharing of resources with the Ginseng Growers has proven to be effective and efficient. The decision to locate in Simcoe was a sound one, in the heart of production, close to the research station, which will develop into an innovation center in the future. Another bonus is that we are already part of it with our seed plot and new variety program. This proximity will allow us to increase our efficiency by developing better varieties and introduce new innovative techniques sooner to our growers. We have to be the best-equipped possible to compete globally and stay in business.
We have a strong balance sheet, but future funding assistance for our seed relationship with the University of Guelph is not guaranteed. We have not as yet been able to secure any government funding assistance for this research, but with the recent safety net announcement, this future looks secure. Our operating reserve provides us with a guaranteed future and ensures no increase in acreage fee assessment for 2005.
We are pleased with Minister Peters' announcement of SDRM continuation, since a production crop insurance program for asparagus, even in the future, is unlikely. We will work towards future risk management through the Ontario Agricultural Commodity Council and the efforts of the OF&VGA. John Jaques has been a proponent of SDRM and we thank him for that.
Jeff Wilson's well-honed skills at crop protection coupled with Craig Hunter's capable assistance have helped bring our needs to the front of the line. We made inroads at the crop protection priority setting workshop in March. Jeff and Paul Banks have strengthened our relationship with the Michigan growers and given us access to the Michigan research experiences. Both have the foresight to see the benefits and build on them.
Our On-Farm Food Safety program is simple, reliable and market-driven. It will be partially funded next year by the Adaptation Council. Increased grower participation, as well as reduced development cost, will make it even more affordable in the future. I am still involved in the provincial On-Farm Food Safety standing committee, and am the provincial representative for this to CHC, which is looking at a national plan. I want to ensure that any on-farm program is economically feasible, effective and market-driven. Ontario asparagus is on this track.
For a marketing plan, we cannot be satisfied with the status quo. That's why we are now introducing our promotional CD, which is just part of our multi-pronged approach to building the market for fresh asparagus in Ontario as well as in the US. We have been approved by Agricultural Adaptation Council for funding to develop a strategic marketing plan that will assess the best ways to increase share in the domestic market and expand the US export market-identifying the tools and approach that will best accomplish these twin objectives. To develop this plan, the consultant will interview trade buyers, shippers and growers. This strategic assessment of the operations available to Ontario's asparagus industry will identify how they (producers, shippers, retailers) could best position themselves to take advantage of those opportunities, and along with knowledge gained from the research into other jurisdictions' successful marketing initiatives, develop a marketing strategy for the Ontario industry. As part of this strategic plan development, the Board intends to make use of the expertise of the LEAN group from the UK during their visit to Ontario in November, 2004. The priority tools identified in the plan will be developed and made available to shippers to use in time for the 2005 season. Innovative packaging that offers consumers' convenience and microwaveability will be test-marketed in 2005 in Ontario. This project is worth $30,000 funding from AAC. We thank them for their confidence.
We see new, exciting opportunities in the fresh asparagus market. Our industry is changing. This past year, we had the benefit of Ed's capable and effective leadership. It's been a pleasure to be associated with a farm leader who is so well recognized in the industry as a true professional. We have had a well-qualified, strong executive. I thank Brenda for her guidance and direction, Jeff for all his capable assistance and repertoire of knowledge, as well as all the directors and growers for their informative support. Melodie does a great job at keeping some sanity in an often hectic office environment. I thank her for that.
Denton Hoffman
District I
This past year was another year that Mother Nature decided to create havoc with asparagus growers. Harvesting had started earlier than normal with the first pick on April 26, only to have it freeze off on April 28. Then the following week there was another cold front with more frost and freeze injury. On May 21 a severe hail storm destroyed the asparagus in one area of District 1.
Considering all the weather related problems, yields were average to below average. Growers found it difficult to supply the marketplace at the start of the season, because of the cold weather. When production resumed, the other growing areas had ample supply and the market prices were already depressed.
The 28 lb. container was widely used and accepted by the trade, but receiving a fair price for the extra weight was difficult at times. Why were we so willing to sell eight extra pounds for a price we wouldn't even sell a 20 lb. box for in past years?
Thankfully there are a few growers, shippers and brokers exporting asparagus out of Ontario. In the future these markets will play an important part of our marketing plan. Our industry could learn from other groups that have developed their A. B.T. Marketing Plan (Anywhere But Toronto).
The committeemen for this year will be Bob Kerr, Kim Fysh, John Jaques and Keith Wright. Directors to the board are John Jaques and Keith Wright.
Thanks again to Claudia and John for hosting the meetings this past year.
Keith Wright, Chair District 1
District 2
The 2004 asparagus season started with warm temperatures in April with early emergence of spears. By the end of April, beginning of May, heavy frost destroyed the standing crop.
With better weather, we started cutting May 10 with good prices at the beginning, but within a few days a glut was on. The market forced prices down the balance of the month and into June.
Some asparagus was moved out of Ontario into the US, taking a little pressure off the domestic market. The 28 lbs. boxes were a great advantage in the export sales and mostly accepted by the domestic market.
Ray Van Elslander, Chair District 2
District 3
The asparagus harvest of 2004 in District 3 was very good once again. Early May frosts that damaged southern districts did not seem to affect northern growers, since very few early spears had emerged when these frosts came. Then came “The Flush”. May 12-15 were days that few growers will forget. Although harvesting all the asparagus was nearly impossible, it seems growers were able to hang on until cooler weather came on May 16.
Wholesale prices were stable, and demand strong. Produce managers continue to welcome the Foodland Display Contest. Eye-catching displays that drive sales – usually at the entrance to the produce section – definitely helped to move asparagus volume.
On behalf of the growers in the district, I would like to thank Chairman Ed DeHooghe, Denton Hoffman and Melodie Blum for their continuing hard work and dedication to serving the Board.
Morris Gervais, Chair District 3
District 4
Our season at Green Ridge started May 8th without any weather damage from frost. We had big production through June 21st, but had to stop harvest because of labour pressures and lack of product volumes at retail. For some reason, sales volumes were below previous seasons. The new 28 lb box was an excellent addition to our industry. We are primarily a packer and shipper. Eighty percent of our production is shipped to central warehousing.
Most growers report excellent fern growth over the summer and fall. We look
forward to the 2005 season.
Brian Beatty, Chair District 4
District 5
District 5, like most other Districts, suffered through a slow start due to a couple of hard frosts. These frosts not only slowed our start but also seemed to affect yield for the rest of the season. Fern growth looks good as long as you were able to control rust and stemphylium.
The new food safety program worked well for those who took part.
Our spring meeting was held on our own, instead of with District 2, and was poorly attended even though everyone in District 5 was notified. Our fall meeting was a joint meeting, and again attendance was down. It makes me wonder if we should be putting our Districts together and electing our Directors from at large.
I would like to commend Ed on all the things he has been able to accomplish as our chairman and to thank him for all the work and time he has spent on behalf of all the growers in District 5.
I would also like to thank Denton and Melodie for a job well done.
Wayne Welsh, Chair District 5
Acreage Measurement Program
The acreage measurement program maintains an acreage inventory for the purpose of assessing annual license fees. Measurements are completed by Paul Van den Borre using a GPS technology. With the new database, growers will be measured a minimum of every 3 years.
The chart gives a cost comparison on an annual basis of the acreage measurement program:
Summary of Acreage Measurement
| 2002 | 2003 | 2004 | |
|---|---|---|---|
| Total Producers Measured | 39 | 49 | 59 |
| Total Acres Measured | 1,249 | 730.8 | 1333.2 |
| Average Acres Measured per Grower | 32.0 | 14.9 | 22.6 |
| Total Cost of Measurer | $4,960 | $3,210 | $5,555 |
| Average Cost per Measurement | $127 | $66 | $94 |
| Average Cost per Acre | $3.97 | $4.39 | $4.17 |
Acres Ploughed Out
| 2004 | 100 |
| 2003 | 170 |
| 2002 | 93 |
| 2001 | 123 |
| 2000 | 141 |
| 1999 | 220 |
| 1998 | 314 |
| 1997 | 176 |
2004 Producer Grouping By Size of Total Acreage
The following chart shows the grower population by size of planting. This year we have 121 growers, which is 20 more than last year (only 8 in production).
| Size of Acreage | # of Producers | Percentage of Producers |
|---|---|---|
| 2 to 5 acres | 23 | 19 |
| 5 to 10 acres | 25 | 20.6 |
| 10 to 20 acres | 23 | 19 |
| 20 to 50 acres | 36 | 29.8 |
| 50 to 100 acres | 12 | 10 |
| 100 acres + | 2 | 1.6 |
| Total | 121 | 100 |
2004 Acreage Report by District (10 years)
| Year | Dist No. 1 | Dist No. 2 | Dist No. 3 | Dist No. 4 | Dist No. 5 | Total |
|---|---|---|---|---|---|---|
| 1995 | 391 | 1,121 | 209 | 92 | 330 | 2,143 |
| 1996 | 452 | 1,255 | 216 | 85 | 344 | 2,352 |
| 1997 | 424 | 1,352 | 230 | 90 | 346 | 2,442 |
| 1998 | 403 | 1,264 | 222 | 83 | 290 | 2,262 |
| 1999 | 452 | 1,212 | 213 | 74 | 235 | 2,186 |
| 2000 | 419 | 4,273 | 231 | 106 | 230 | 2,259 |
| 2001 | 431 | 1,325 | 215 | 94 | 226 | 2,291 |
| 2002 | 377 | 1,571 | 221 | 98 | 250 | 2,517 |
| 2003 | 328 | 1,607 | 178 | 117 | 213 | 2,443 |
| 2004 | 314 | 1,972 | 187 | 116 | 257 | 2,846 |
In 1996 and 1997, the increased level of new plantings and seed sales has generated an increase in acreage. From 1998 to 1999, the acreage declined by 76 acres which were old, low yielding patches. In 2001, the acreage increased by 32 acres from 2000. In 2001 the acreage increased dramatically by 226 acres. 2002 saw dramatic plough outs of 178 acres. Most ploughouts were in District 2 but they made substantial plantings 2 years ago that came on line this year for harvest. District 3 had the next highest ploughouts and no replacement plantings to replace production. This year, although the figures show a decrease in producing acreage, it should be considered that 2004 saw a net increase of 362 acres of planting that will come online for production in 2005 and 2006, largely in District 2.
2004 Age-Acreage Report by District
| Description | Dist I | Dist 2 | Dist 3 | Dist 4 | Dist 5 | Total |
|---|---|---|---|---|---|---|
| Number of Producers | 14 | 56 | 14 | 10 | 14 | 108 |
| Percent of Producers | 13 | 52 | 13 | 9 | 13 | 100 |
| Acres Planted 2004 | 0 | 152.10 | 0 | 4.8 | 16.78 | 173.68 |
| Acres Planted 2003 | 2.57 | 277.30 | 2.49 | .66 | 33.76 | 316.78 |
| Acres Planted 2002 | 0 | 213.70 | 6.35 | 9.53 | 17.79 | 247.37 |
| Acres Planted 2001 | 25.54 | 209.60 | 13.10 | 21.69 | 31.72 | 301.66 |
| Acres Planted 2000 | 13.70 | 136.80 | 20.64 | 1.00 | 17.54 | 189.68 |
| Acres Planted 1999 | 65.24 | 53.77 | 17.43 | 3.16 | 20.71 | 160.31 |
| Acres Planted 1998 | 78.74 | 117.60 | 10.80 | 1.07 | 31.05 | 239.26 |
| Acres Planted 1997 | 30.64 | 180.90 | 7.35 | 0 | 9.39 | 228.28 |
| Acres Planted 1996 | 46.24 | 95.56 | 23.45 | 14.66 | 6.29 | 186.20 |
| Acres Planted 1995 | 6.94 | 81.55 | 3.66 | 22.92 | 17.21 | 132.28 |
| Acres > 10 years | 44.58 | 452.60 | 81.90 | 36.26 | 55.15 | 270.49 |
| Total Acres | 314.19 | 1971.55 | 187.18 | 115.78 | 257.35 | 2846.05 |
Seed Production Report
Good sales of seed in inventory triggered the need to produce a good crop of seed in 2004.
Herbicides were applied to recommended rate; late emerging weeds were evident, but they did not interfere with the crop. Insect control was achieved through modest but effectively timed applications.
The cool, damp conditions of May did not help the pollination of the earliest blooms. The bees initially suffered a set-back from possible toxic insecticide residues. To offset the lack of pollinating capacity, supplemental bumble bee hives were placed in the enclosure. The conditions on some days were too damp and cool in the screened enclosure to achieve good bee activity. As well, the density of fern growth on the Tiessen female slowed the bees' ability to fly into the canopy to fertilize the flowers.
Seed harvest occurred in the beginning of October. Germination on 2004 seed is excellent (95%+). The yields were disappointing though. We must realize hot summer weather was not there this year at the critical time for high yields to be initiated.
The decision was made and implemented, that in 2005 we wilI be able to apply pesticides utilizing tramways. Although this eliminated some seed-producing rows, overall, it will reduce damage when driving between the rows.
Hopefully, 2005 will be a kinder, warmer Spring.
Randy Baker
University of Guelph - Asparagus Breeding
The objective of the University of Guelph breeding program is to provide cultivars with superior characteristics compared to Guelph Millennium: improved yield, quality and rust resistance. The closure of the Cambridge Station and relocation to Simcoe has slowed the pace of research. New trials have been established in each of the past three years and the collection of yield data has been initiated for hybrids planted in 2002.
Preliminary data from a new trial at Simcoe (AO2) and one full season of harvest data from two trials at Cambridge (A99, P18) before it closed indicate that hybrids in the program have superior characteristics compared to Guelph Millennium (Table 1). Some have more than double the yield of Millennium and are as good as, or better than, Giant for rust resistance. Percent marketable yield is also improved for several new hybrids.
The next step in the evaluation process is the establishment of multi-location trials on research farms and in grower fields. For the best hybrids, seed will be produced in 2005 and 2006, and trials will be planted in 2007. From these trials, the next hybrid(s) for commercialization can be determined.
There has been increasing interest in purple spot, especially in fields along the shore of Lake Erie. One low, wet section of the breeding nursery at Simcoe has become infected with purple spot, and evaluation of the genetic material indicated that certain lines may be resistant (Table 2). Since only selected areas of certain fields in research plots show purple spot symptoms, the program will need to evaluate materials off-site. In the future, we hope to establish trials in grower fields that consistently show purple spot to assist in the evaluation of new hybrids.
Table 1, Yield and disease data for new hybrids.
| Hybrid | Mkt Yield: kg/ha | % Millennium | % Mkt | Spear Wt | Rust |
|---|---|---|---|---|---|
| A99, Cambridge, 2wk (2001) + 6 wk harvest (2002) | |||||
| 24 x 751 | 2651 | 215 | 63 | 27 | 6 |
| 178 x 759 | 2342 | 190 | 59 | 29 | 3 |
| Mill | 1270 | 100 | 57 | 24 | 7 |
| Giant | 1231 | 97 | 57 | 25 | 5 |
| P18, CambrIdge, 2wk (2001) + 6 wk harvest (2002) | |||||
| 158 x 305 | 2986 | 141 | 64 | 25 | 4 |
| 240 x 305 | 2687 | 127 | 62 | 25 | 5 |
| 242 x 751 | 3086 | 147 | 55 | 26 | 5 |
| Mill | 2106 | 100 | 51 | 23 | 7 |
| Giant | 1730 | 82 | 48 | 24 | 5 |
| A02, Simcoe 2wk harvest (2004) | |||||
| 24 x 783 | 2240 | 241 | 85 | 20 | 3 |
| RB18 x 751 | 1812 | 195 | 91 | 18 | 5 |
| 498 x 753 | 1655 | 178 | 78 | 14 | 3 |
| 24 x 749 | 1654 | 178 | 95 | 20 | 5 |
| 24 x 761 | 1598 | 172 | 74 | 20 | 5 |
| (106x417) x305 | 1445 | 156 | 87 | 15 | 5 |
| 158 x 307 | 1423 | 153 | 86 | 17 | 5 |
| 240 x 755 | 1407 | 152 | 92 | 16 | 7 |
| 24 x 799 | 1405 | 151 | 78 | 19 | 5 |
| Mill | 928 | 100 | 75 | 16 | 7 |
Table 2, Genetic variation for purple spot resistance in breeding nursery.
Sub-sample of genetic, material, other resistant lines are in the field.
| Selection | Rust 1=resistant 9=susceptible |
Purple Spot |
|---|---|---|
| (GI50XG305)F2-04-01 | 1 | 9 |
| ((G203)F2XG203)XG401 | 1 | 1 |
| G024XVIK | 1 | 3 |
| G024XVIK | 1 | 7 |
| ((G203)F2)SIB | 1 | 3 |
| (GO24X(GO62XG203))XG737 | 1 | 7 |
| (GO24X(GO62XG203))XG737 | 3 | 1 |
| (GO24X(GO62XG203))XG737 | 1 | 1 |
| G024XG737 | 3 | 1 |
D. Wolyn and P. Bank
(Audited)
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
FINANCIAL STATEMENTS
SEPTEMBER 30,2004
Doug L. Murphy
CHARTERED ACCOUNTANT
49 PHEASANT TRAIL
CHARTERED ACCOUNTANT R.R. #3.
KOMOKA, ONTARIO
NOL 1RO
PHONE (519) 657-0767
FAX (519) 657-0060
AUDITORS' REPORT
To the Members of the
Ontario Asparagus Growers' Marketing Board:
I have audited the balance sheet of the Ontario Asparagus Growers' Marketing Board General Account, as at September 30, 2004 and the statements of surplus, revenues and expenditures and changes in cash flow for the year then ended. These financial statements are the responsibility of the Board's management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statement are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.
In my opinion, these financial statements present fairly, in all material respects, the financial position of the Board as at September 30, 2004 and the results of its operations and the changes in its cash flow for the year then ended in accordance with Canadian generally accepted accounting principals employed by marketing boards as outlined in note 1.
London, Ontario Chartered Accountant.
December 02, 2004
Statement 1
ONTARIO ASPARAGUS GROWERS'MARKETING BOARD GENERAL ACCOUNT BALANCE SHEET
AS AT SEPTEMBER 30,2004
(with comparative amounts for 2003)
ASSETS
| Current: | 2004 | 2003 |
|---|---|---|
| Bank | $ 29,790 | $ 124,776 |
| Term deposits | 358,363 | |
| Term deposits-restricted (note 3) | 56,196 | 31,774 |
| Accounts receivable | 17,556 | 31,295 |
| Government grant receivable | 57,296 | 157,665 |
| Inventory . products for resale | 692 | |
| Prepaid expense | 1,909 | 1,361 |
| 521,110 | 347,563 | |
| Fixed assets (note 1) | 1 | 1 |
| $ 521,111 | $ 347,564 |
LIABILITIES AND GROWERS' EQUITY
| Current: | 2004 | 2003 |
|---|---|---|
| Accounts payable and accrued liabilities | $ 59,831 | $ 31,460 |
| Growers' equity: | ||
| Surplus (statement 2) | $ 461,280 | $ 316,104 |
| $ 521,111 | $ 347,564 |
Statement 2
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
(Incorporated under the laws of Ontario)
STATEMENT OF GROWERS' SURPLUS
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Balance, beginning of year Bank | $ 316,118 | $ 213,802 |
| Add: Excess of revenue over expenditures for year |
145,162 | 113,147 |
| 461,280 | 326,949 | |
| Deduct: Rebate declared and paid during year |
10,831 | |
| Balance, end of year | $ 461,280 | $ 316,1118 |
Statement 3
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
STATEMENT OF REVENUES AND EXPENDITURES
FOR THE YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Revenues: | ||
| License fees - net of discounts | $ 80,193 | $ 87,844 |
| Processing asparagus pool - schedule “A” | 27,722 | 562 |
| Net revenue on seed sales - schedule “C” | 10 | 3,830 |
| Net revenue - University of Guelph seed - schedule “D” | 135,451 | 165,974 |
| Net revenue on product sales - schedule “E” | 2,173 | (264) |
| Net revenue (loss) on agronomist - schedule “G” | (14,417) | (7,645) |
| Interest income | 2128 | 2,795 |
| Government grant on account items | 100,047 | |
| Food safety membership | 7,386 | |
| 340,693 | 253,096 | |
| Expenditures: | ||
| Promotion (schedule F) | 44,580 | 23,669 |
| Wages and benefits | 39,404 | 33,519 |
| Directors' fees | 24,274 | 18,635 |
| Consulting fee | 16,861 | 2,123 |
| Legal and audit | 11,681 | 49902 |
| Office | 9,449 | 12,054 |
| Directors' travel | 8,358 | 15,616 |
| Office travel | 7,173 | 39453 |
| Rent | 5,648 | 69750 |
| Annual meeting | 5,552 | 7,110 |
| Acreage measurement | 5,191 | 3,210 |
| Memberships | 4,628 | 2,965 |
| Bad debts (recovery) | 2,994 | (366) |
| Telephone | 2,914 | 3,107 |
| Equipment rental | 2,780 | 712 |
| Postage and delivery | 1,658 | 1,505 |
| Equipment net proceeds of purchases and disposals | 1,374 | (55) |
| Rebate - committee offices | 1,102 | 1,040 |
| 195,531 | 139,949 | |
| Excess (deficiency) of revenues over expenditures | $ 145,162 | $ 113,147 |
Statement 4
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
(Incorporated under the laws of Ontario)
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Cash provided by (used in) operating activities: | ||
| Excess of revenue over expenditures | $ 145,162 | $ 113,147 |
| Add (deduct) charges to (credits to) operations not requiring a current
cash payment - Net change in non-cash working capital balances related to operations - |
||
| Accounts receivable | 13,739 | (27,167) |
| Inventory | 692 | 231 |
| Grant receivable | 100,369 | (21,864) |
| Prepaids | (549) | 3,921 |
| Accounts payable and accrued liabilities | 28,386 | (23,694) |
| Cash provided by operating activities | 287,799 | 44,574 |
| Cash provided by (used in) financing activities: Rebate declared and paid during year |
(10,831) | |
| Cash provided in financing activities | (10,831) | |
| Net increase (decrease) in cash during year | 287,799 | 33,743 |
| Cash position at beginning of year | 156,550 | 122,807 |
| Cash position at end of year | $ 444,349 | $ 156,550 |
| Represented by: | ||
| Cash | $ 29,790 | $ 124,776 |
| Term deposits | 358,363 | |
| Term deposits - restricted | 56,196 | 31,774 |
| $ 444,349 | $ 156,550 |
Schedule "A"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF PROCESSING ASPARAGUS POOL
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Revenue: | ||
| Gross processing sales | $ 270,606 | |
| Net revenue on processing lug rentals - Schedule "B" |
$ 27,722 | 6,319 |
| 27,722 | 276,925 | |
| Expenditures: | ||
| Station fees | 7,081 | |
| Director per diem and travel | 29910 | |
| Memberships | 1,200 | |
| Staff | 1,063 | |
| Scheduling & shipping | 330 | |
| Postage | 324 | |
| Inspection fee | 200 | |
| Telephone | 193 | |
| Office | 175 | |
| Office rent | 150 | |
| 13,626 | ||
| Available for distribution | 27,722 | 263,299 |
| Paid to growers | 262,737 | |
| Excess of revenue over disbursements for year to general account revenue |
$ 27,722 | $ 562 |
Schedule "B"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF PROCESSING LUG RENTALS
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Gross revenue: | ||
| Processing lug rentals | $ 3,300 | $ 6,319 |
| Lug sales (note 3) | 32,340 | |
| 35,640 | 6,319 | |
| Expenditures: |
||
| Handling fee | 7,918 | NIL |
| 7,918 | NIL | |
| Excess of revenue over disbursements for year to general account revenue |
$ 27,722 | $ 6,319 |
Schedule "C"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF JERSEY SEED SALES
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Gross revenue: | ||
| Sales – net of discounts | $ 34,961 | $ 39,298 |
| Expenditures: |
||
| Seed purchases | 34,951 | 35,245 |
| Office staff | 223 | |
| 34,951 | 35,468 | |
| Excess of revenue over disbursements for year to general account revenue |
$ 10 | $ 3,830 |
Schedule "D"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF UNIVERSITY OF GUELPH SEED
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Gross revenue: | ||
| Sales – net of discounts | $ 144,948 | $ 210,044 |
| Government Grant |
32,500 | 55,301 |
| 177,448 | 265,345 | |
| Expenditures: | ||
| Promotion | 24,555 | |
| Guelph seed royalties | 17,271 | 22,203 |
| Seed development | 9,606 | 20,000 |
| Seed production cost | 6,500 | 13,561 |
| Asparagus research fund contributions |
1,876 | 7,000 |
| Equipment purchases | 1,697 | 5,079 |
| Directors’ fees | 1,355 | 2,045 |
| Seed plot maintenance | 1,313 | 1,313 |
| Brokerage fees | 794 | 974 |
| Insurance | 708 | 810 |
| Freight delivery | 444 | 790 |
| Telephone | 304 | 444 |
| Office staff | 129 | 401 |
| Directors’ travel | 196 | |
| 41,997 | 99,371 | |
| Excess of revenue over disbursements for year to general account revenue |
$ 135,451 | $ 165,974 |
Schedule "E"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF PRODUCT SALES
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| Elastic Bands | Bags | Total | ||||
|---|---|---|---|---|---|---|
| 2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |
| Revenue | $ 863 | $ 20,400 | $ 400 | $ 863 | $ 20,800 | |
| Cost of Sales: |
||||||
| Inventory-beginning of year | 567 | 111 | 125 | 811 | 692 | 922 |
| Purchases and other | 19,867 | 19,867 | ||||
| Rebate to growers | (2,002) | 14,320 | (2,002) | 14,320 | ||
| Government grant received | (13,353) | (13,353) | ||||
| (1,435) | 20,945 | 125 | 811 | (1,310) | 21,756 | |
| Deduct: |
||||||
| Inventory end of year | 567 | 125 | 692 | |||
| (1,435) | 20,378 | 125 | 686 | (1,310) | 21,064 | |
| Excess of revenue over disbursements for year to general account revenue |
$ 2,298 | $ 22 | $ (125) | $ (286) | $ 2,713 | $ (264) |
Schedule "F"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF PRODUCT PROMOTION
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Gross revenue: | ||
| Grant income | $ 645 | $ 54,478 |
| Recipe Brochure sales |
2,222 | |
| 2,867 | 54,478 | |
| Expenditures: | ||
| Media | 19,499 | 39,563 |
| Promotional items/trade shows | 16,457 | 25,117 |
| Development value added product | 4,805 | 10,000 |
| Directors’ fees | 3,316 | 2,245 |
| Directors’ travel | 667 | |
| Grower Day | 2,433 | |
| Telephone | 794 | 444 |
| Office Staff | 143 | 111 |
| 47,477 | 78,147 | |
| Excess of revenue over disbursements for year to general account revenue |
$ (44,580) | $ (23,669) |
Schedule "G"
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT
SCHEDULE OF AGRONOMIST EXPENSE
YEAR ENDED SEPTEMBER 30, 2004
(with comparative amounts for 2003)
| 2004 | 2003 | |
|---|---|---|
| Gross revenue: | ||
| Grant income | $ 2,997 | $ 28,268 |
| AIMS growers membership fee | 4,914 | |
| 2,997 | 33,182 | |
| Expenditures: | ||
| AIMS agronomy contract | 16,620 | 21,644 |
| Wages | 794 | 13,570 |
| Office | 4,018 | |
| Travel | 1,151 | |
| Telephone | 444 | |
| 17,414 | 40,827 | |
| Excess of revenue over disbursements for year to general account revenue |
$ (14,417) | $ (7,645) |
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2004
1. Significant accounting policies
The Board employs a modified fund accounting method whereby its fixed assets and rental assets are not capitalized on the balance sheet and depreciated over their useful lives. Instead, the Board charges current year expenditures with the fixed asset purchases net of the applicable government grants and credits revenues with the proceeds from the sale of fixed assets. Fund accounting is concerned with the measurement of cash flow rather than the measure of period net incomes. The Board otherwise applies generally accepted accounting principles in the financial statements. During the year, the Ontario Asparagus Growers' Marketing Board expensed net of grants $1,374 ($2,590 in 2003) of fixed asset and lugs and realized $24,422 ($NIL in 2003) on the sale of lugs and $NIL ($1,121 in 2003) on the sale of fixed assets during the year.
(a) Scope
These financial statements are representative of the Board's General Account and do not include the assets, liabilities and operations of the area committees.
(b) Fixed assets and Processing lugs available for rental
Fixed assets and processing lugs are recorded on the balance sheet at a nominal value of $1. When these assets are purchased their cost is reflected in the statement of revenues and expenditures. Any sale proceeds are credited to revenue in the year of sale.
(c) Inventory
Inventory of product for resale is valued at the lower of cost and net realizable value. Seed inventory is valued at NIL and recognized when sold.
(d) Government grants
Government grants are recognized as receivable in the year the approved expenditure is made.
2. Lease commitments
The board rents its office premises in accordance with a lease agreement shared with the Ontario Ginseng Growers Association for $450 per mouth on a net basis until February 28, 2006.
3. Restricted term deposits
During the year the Ontario Asparagus Growers' Marketing Board sold $32,340 at a cost of $7,918 ($NIL in 2003) of lugs that were previously expensed. Over the years the sale of lugs has accumulated to $56,196 ($31,774 in 2003) of which the Board has allocated to be used for future lug purchases.