Despite cancelling its 2020 show and being in the middle of what CEO Chris Lane called a 鈥渃risis鈥� due to the COVID-19 pandemic, Canadian Western Agribition (CWA) expects no new debt on its books this year as it works out new, 鈥渁ggressive鈥� finance plans to offset losses.
鈥淩ight 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,鈥� 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鈥檚 balance sheet as a positive one, with $2.787 million in liquidity, after subtracting $137,524 in liabilities.
鈥淎gribition carries no debt. And we don't see in our future, even despite the challenges in 2020, the need to take on any debt,鈥� Lane told CWA members.
The news comes a week after CWA announced it鈥檚 postponing this year鈥檚 show, originally set to be its 50th anniversary celebration, to Nov. 22 to 27, 2021.
Speaking with the Regina Leader-Post after Thursday鈥檚 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鈥檚 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 鈥渦p to $1 million in operating loss.鈥� He said that falls within a range of forecasted losses, $1 million representing the highest likely loss.
鈥淲e鈥檙e thinking and we hope there are ways to mitigate that,鈥� Lane said, referencing the contingency money and the new finance strategies. 鈥淭he best-case scenario would be to break even.鈥�
He said among the possible new revenue streams are 鈥渁n online virtual-digital presence of parts of what Agribition does鈥� to add value to the industry; a forum that connects international buyers with local sellers; and 鈥渟howcasing manufacturing exhibitors and farm machinery exhibitors.鈥�
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.
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