Despite cancelling its 2020 show and being in the middle of what CEO Chris Lane called a “crisis” due to the COVID-19 pandemic, Canadian Western Agribition (CWA) expects no new debt on its books this year as it works out new, “aggressive” finance plans to offset losses.
“Right now what needs to happen is an aggressive cost management strategy as well as a pretty aggressive new revenue-stream-development strategy. And that's what we're going to do,” Lane told CWA members at its annual general meeting.
The meeting was held Thursday virtually online through a YouTube channel feed, a conference phone call and in person with a small contingent of attendees, including Lane and president Chris Lees.
Lane presented the yearly agriculture show’s balance sheet as a positive one, with $2.787 million in liquidity, after subtracting $137,524 in liabilities.
“Agribition carries no debt. And we don't see in our future, even despite the challenges in 2020, the need to take on any debt,” Lane told CWA members.
The news comes a week after CWA announced it’s postponing this year’s show, originally set to be its 50th anniversary celebration, to Nov. 22 to 27, 2021.
Speaking with the Regina Leader-Post after Thursday’s meeting, Lane said Agribition will use its contingency reserve money to offset financial struggles this year. The fund has $500,000 in it; Lane said it’s likely all of that money will be used.
Despite no new expected debt, he said CWA staff are planning for a worst-case scenario, which is “up to $1 million in operating loss.” He said that falls within a range of forecasted losses, $1 million representing the highest likely loss.
“We’re thinking and we hope there are ways to mitigate that,” Lane said, referencing the contingency money and the new finance strategies. “The best-case scenario would be to break even.”
He said among the possible new revenue streams are “an online virtual-digital presence of parts of what Agribition does” to add value to the industry; a forum that connects international buyers with local sellers; and “showcasing manufacturing exhibitors and farm machinery exhibitors.”
The international market is one Lane highlighted during the meeting that CWA wants to maintain and grow. Numbers he presented show international revenue in 2019 was at $1.393 million; in 2015 it was a meagre $123,450.
Whatever budget hardships the pandemic piles onto CWA, Lane described it and its sector, agriculture, as resilient, referencing previous years when the show operated at a loss.
