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Wet-loving weeds 10 Deflating fixed-time AI myths 26

BEEFWATCH 33

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Established 1938 ISSN 1196-8923 CATTLEMEN EDITORIAL Editor: Gren Winslow 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 (204) 944-5753 Fax (204) 944-5416 Email: gren@fbcpublishing.com

Contents CANADIAN CATTLEMEN · MAY 2014 · VOLUME 77, NO. 5

 M A NAG E M E N T

Field Editor: Debbie Furber Box 1168, Tisdale, SK S0E 1T0 (306) 873-4360 Fax (306) 873-4360 Email: debbie.furber@fbcpublishing.com ADVERTISING SALES Deborah Wilson RR 1, Lousana, AB T0M 1K0 (403) 325-1695 Fax (403) 944-5562 Email: deb.wilson@fbcpublishing.com

Steven Pylot Meadow Lake, Sask.

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DON’T BELIEVE THE CHATTER… 18 IMPLANTS PAY  PASTU R ES

President: Bob Willcox Glacier FarmMedia Email: bwillcox@farmmedia.com

Common tansy and scentless chamomile love the wet . . . . . . 10 Back patches improve visual heat detection . . . . . . . . . . . . . . . . . . . 12

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Common tansy and scentless chamomile love the wet 10 Watch for these this spring  B R E E D I NG

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FEATURES

Back patches improve visual heat detection 12

Congratulations!

To our May survey winner, Douglas Shapka, Willingdon, Alta.

This month’s survey is on page 48.

Cover Photo supplied by the Pylot family

An AI cowculator . . . . . . . . . . . . . . . . . . . . . . . 24 Deflating fixed-time AI myths . . . . . . . . . . 26 Beef Watch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Sharpen your human resource skills . . . . 38 Verified Beef Production . . . . . . . . . . . . . . . 41

DEPARTMENTS Comment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Newsmakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Our History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 Holistic Ranching . . . . . . . . . . . . . . . . . . . . . . . 20 Research on the Record . . . . . . . . . . . . . . . . 30 CCA Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Prime Cuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Straight from the Hip . . . . . . . . . . . . . . . . . . . 40 News Roundup . . . . . . . . . . . . . . . . . . . . . . . . . 42 Purely Purebred . . . . . . . . . . . . . . . . . . . . . . . . 52 The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Market Talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Sales and Events . . . . . . . . . . . . . . . . . . . . . . . 58 C A T T L E M E N · M AY 2 0 1 4

3

 COMMEN T

By Gren Winslow

Exports are up again Up but still nowhere near pre-2003 levels

T

rade was much in the headlines last month starting with Agriculture Minister Gerry Ritz leading a trade mission to South Korea and Japan to follow up on the March signing of the Canada-Korea free trade agreement (FTA) and stoke the fires of a hoped-for agreement with Japan.

Canada Beef Inc. tied into the same news cycle with an upbeat press release to announce worldwide exports of Canadian beef in 2013 were up three per cent in volume and 10 per cent in value at $1.3 billion.

It went on to report a 31 per cent increase in sales to Hong Kong and Macau and a 19 per cent increase in shipments to Japan after it agreed to take beef over 30 months of age.

It’s natural for marketing people to put the best spin they can on any topic and to be fair 2013 was something of a bounce-back year for beef exports, largely because our 2012 export sales were the lowest they’ve been since the bottom fell out in 2003. The chart in this month’s Beef Watch prepared by the analysts at Canfax gives a longer-term view of our exports since 2002.

Even so, the trend does seem to be heading back in the right direction. Statistics Canada data for the first two months of this year paints a positive picture with beef exports up 16 per cent overall. On the dollar side that works out to $242 million compared to $166 million last year.

The U.S. continues to lead the sales race with a seven per cent increase to 31,000 tonnes so far. Sales to Mexico are up more than 300 per cent to 3,600 tonnes for the two months, Japan is up 13 per cent, Taiwan 62 per cent and Hong Kong 12 per cent.

The icing on the cake is Mainland China which purchased 1,425 tonnes of Canadian beef in the first two months of the year compared to 471 in 2013. That bodes well for this huge potential market.

The only sour note is South Korea where shipments have continued to slide down to 98 tonnes in the first two months of this year compared to 325 over the same two months of 2013. It’s not hard to see why the Canadian Cattlemen’s Association is pushing the Canadian government to implement the recently signed free trade agreement as quickly as possible and begin phasing out South Korea’s 40 per cent tariff on Canadian beef.

The U.S./South Korea FTA was implemented in 2012 so the phasing out of tariffs on U.S. beef has already begun. The gap between U.S. and Canadian beef at the moment is eight per cent but it will continue to widen until Canada brings its FTA into force. There was a time when South Korea was a $40 million to $50 million-ayear market for Canada before it slipped to zero in 2003.

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C a t t l e m e n · m ay 2 0 1 4

The sales have struggled back, reaching $8 million to $11 million the past couple of years but without an active FTA in place Canadian beef will quickly be priced right out of this market.

The same situation could be happening in Japan.

Australia recently negotiated an FTA with Japan that contains lower tariffs for beef. The U.S. is also locked in negotiations with Japan.

Going into the Trans Pacific Partnership negotiations and the Canada-Japan Economic Partnership Agreement sessions in March the CCA had lobbied for the elimination of Japan’s 38.5 per cent tariff on beef and the safeguard trigger that kicks the tariff up to 50 per cent when imports go past a pre-set level. All the cattle organizations in the Five Nations Beef Alliance, including the Cattle Council of Australia took a similar stand.

I n the first two months of this year beef exports are up 16 per cent overall This seems an unlikely objective now that the Australia/Japan FTA calls for tariffs to be phased down to a floor of 23.5 per cent on fresh beef over 15 years, and 19.5 per cent on frozen beef over 18 years.

Let us not forget the Canada-EU Comprehensive Economic and Trade Agreement (CETA). The technical negotiations for beef are still slowly winding to completion. In all likelihood it will be some time yet before Canadians see any benefits from that agreement.

In the meantime I suppose we should start to wonder if Canada will still have enough cattle around to take advantage of these new marketing opportunities as they arise.

As the Beef Watch authors point out, there is “no growth in sight.” Total inventories were basically flat at 12.2 million head in January, with fewer cows in the breeding herd and no increase in the number of females waiting in the wings.

Cow marketings were up 22 per cent last year and while domestic cow slaughter has sagged a bit this year cow marketings are running at historically high levels just below liquidation levels.

Feeder prices are certainly sending a strong signal to expand but it remains uncertain how many producers have enough confidence left to answer the call. When they do get the numbers up, the doors to a much larger world should be open to them. c

www.canadiancattlemen.ca

From the pasture to the feedlot, the chores on your cattle operation can add up. And now with the Case IH Spring Sales Event, so do the savings. That’s because new Farmall®, Puma® and Maxxum® series tractors and our complete line of hay tools are available at a special rate for a limited time. Get in to your dealer today or visit caseih.com/specialoffers.

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Down payment may be required. Offer good through June 30, 2014. Not all customers or applicants may qualify for this rate or term. CNH Industrial Capital Canada Ltd. standard terms and conditions will apply. Example: The interest rate will be 0.00% per annum for 24 months followed by a customer qualified rate of 4.99% per annum until April 15, 2019. Total contract term is 60 months. Based on a retail contract date of April 15, 2014, with a suggested retail price on a new Puma 145 CVT tractor with L765 Loader of C$165,310.00, customer provides down payment of C$33,061.00 and finances the balance of C$132,249.00 at 0.00% per annum for 24 months followed by a customer qualified rate of 4.99% per annum until April 15, 2019. There will be 4 equal annual installments of C$27,996.57 each, the first due on April 15, 2015 and one final installment of $27,996.54 due on April 15, 2019. The total amount payable will be C$173,043.82, which includes finance charges of C$7,733.82. Taxes, freight, set-up, delivery, additional options or attachments not included in suggested retail price. Offer subject to change or cancellation without notice. ©2014 CNH Industrial America LLC. All rights reserved. Case IH is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. CNH Industrial Capital is a trademark in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. www.caseih.com

 THE INDUST RY

NewsMakers Dr. Allan Preston, a producer and former assistant deputy minister of agriculture in Manitoba has had his term as Manitoba bovine tuberculosis co-ordinator extended to December 2014 by Agriculture and Agri-Food Dr. Allan Preston Canada. He has been coordinating the tuberculosis eradication efforts in the Riding Mountain Eradication Area since December 2012.

Livestock Services of Saskatchewan Corp.

(LSS) has named Cameron Wilk as the first CEO of the new private livestock inspection agency run by the Saskatchewan Cattlemen’s Association, Saskatchewan Stock Growers Association, Saskatchewan Cattle Feeders Association, Saskatchewan Horse Federation and Livestock Marketers of Saskatchewan. Wilk was the manager of field services for the livestock branch of the Saskatchewan Ministry of Agriculture before it was turned over to the industry.

The B.C. Cattlemen’s Association (BCCA) is the latest cattle association to slim down its governance model by electing 16 directors representing seven zones across the province compared to the previous 25 drawn from 15 regional associations. The new board takes over May 24 at the BCCA annual meeting in Creston. The new directors are: Mike McConnell, Dawson Creek; Lary Fossum, Dawson Creek; Bill Bentley, Progress; Larry Garrett, Vanderhoof; Martin Rossmann, Quesnel; John Kochel,

Vanderhoof; Harold Kerr, Telkwa; Grant Huffman, Riske Creek; Duncan Barnett, 150 Mile House; Lee Hoium, Lac La Hache; John Anderson, Merritt; Leroy Peters, Heffley Creek; Linda Allison, Princeton; Werner Stump, Malakwa; Brian McKersie, Canal Flats; and Rod Savage, Cranbrook.

The former executive vice-president of the Canadian Beef Breeds Council, Brett Campell is the new executive director of the Barley Council of Canada (BCC). Campbell’s resumé includes past Brett Campbell postings with Cargill, XL Foods and vice-chairman of the Canadian Beef Export Federation.

In April the Veterinary Drugs Directorate (VDD) of Health Canada announced it would phase out growth promotion and/ or production claims for livestock on medically important drugs over three years in step with similar restrictions in the U.S. and tighten the veterinary oversight of antimicrobial use in food animals. Canadian Animal Health Institute data for drug distribution to food/human markets in 2012 “demonstrates the fallacy of jumping to conclusions about the risk to people from antibiotics used in food animals.”

• Tetracyclines, 38.5 per cent of animal use, less than four per cent in humans (U.S.).

• Ionophores/coccidiostats, 30.4 per cent in animals; zero in humans.

• Floroquinolones, cephalosporins and peni-

cillins 70 per cent of human drug sales (U.S.): in animals it is 4.2, 0.3 and 9.5 per cent, respectively.

Andrea Lyon is the new deputy minister of Agriculture and Agri-Food Canada succeeding Suzanne Vinet who is retiring after 28 years in the federal civil service. Lyon was the associate deputy minister of agriculture from 2009 to 2011 and has a lengthy background in trade matters with Foreign Affairs and International Trade Canada. She comes to AAFC after nearly three years as associate deputy minister of environment.

Two new provincial ministers of agriculture were appointed last month. In British Columbia former ag minister Norm Letnick was reappointed to replace Pat Pimm while he recovers from cancer surgery. Letnick, the Norm Letnick MLA for Kelowna-Lake Country, served as agriculture minister from 2012 until last May’s provincial election, after which he was dropped from Premier Christy Clark’s cabinet.

In Quebec former agriculture critic for the Liberals and former chair of the assembly’s agriculture, fisheries and food committee, Pierre Paradis, is the province’s new minister for agriculture, fisheries and food. An MNA for the Monter- Pierre Paradis egie riding of Brome-Missisquoi since 1980, Paradis, 63, founded the law office of Paradis, Paradis and Associates in 1975 before moving to provincial politics. He has served in previous cabinets as minister for the environment, housing, municipal affairs and labour.

Brian Chomlak of Alberta Beef Producers is the new chair of Alberta Farm Animal Care, replacing Heini Hehli of Alberta Milk. James Jenkins of Western Stock Growers Association is the new vice-chair and Ite Veurink of Alberta Chicken Producers is finance chair. Laurie Fries of Alberta Goat Breeders Association was elected director at large at the group’s recent annual meeting. c

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C a t t l e m e n · M ay 2 0 1 4

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 our histo ry

Feed and Feeder policy in 1947 Reprinted from the Dec. 1947 issue of Canadian Cattlemen

Remove Ceilings on Feed Grains

E

ffective October 22 price ceilings were removed on oats, barley and screenings in all forms and positions. At the same time price ceilings on meat and meat products except animal fats were removed and the subsidies on grains used for livestock feeding amounting to 25 cents per bushel on wheat and barley and 10 cents per bushel on oats were discontinued.

The feed grain freight assistance policy will remain in effect until the end of the current crop year, July 31, 1948.

In July the Dominion Government announced that ceilings and subsidies on feed grains would be continued for as long as price ceilings remained on any important livestock products. It had been intended to decontrol meat prices in September but when the principal packing plants were closed down by industrial dispute, the government felt that it would be unwise to decontrol meats at that juncture. “Now that it seems certain that the dispute in the packing industry has been settled it is expected that meat supplies will rapidly return to normal and that ceilings can safely be removed,” stated the government announcement.

To ensure fulfilment of Canada’s overseas commitments of livestock products, and in view of the shortage of feed grains in Canada, the government reiterates its policy of allowing no exports of oats and barley during the current crop year.

It is anticipated that the decontrol of oats, barley and screenings will result in a freer movement to feeder positions.

Pay 50 per cent freight, carload shipments on feeder cattle

I

n order to relieve congestion resulting from the slowing down of cattle marketings during the period of the packing house strike, and to assist in the movement of feeder cattle from areas in Western Canada in which there is insufficient winter feed, the Right Hon. James G. Gardiner announced on October 23 that he has arranged for allowances of a refund of 50 per cent of the actual freight charges on carload shipments billed to Eastern Canada during the remainder of the calendar year.

Shipments limited to steers born after January 1, 1944 and to heifers born after January 1, 1945 may be billed from any point in the provinces of British Columbia, Alberta or Saskatchewan to any point east of the Province of Manitoba.

The freight refund will be payable when the applicant is in a position to certify that the cattle have been retained in his ownership for a period of at least three months from the date of shipment. To facilitate prompt payment of refund, it is important that a shipment be consigned to the prospective applicant.

Where the consignee shown on the freight bill is other than the applicant it will be the obligation of the latter to satisfy the Dominion Department of Agriculture that the cattle in respect to which application for the freight refund is made are those covered by the accompanying freight bill. c

For more of the past from the pages of our magazine see the History section at www.canadiancattlemen.ca.

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 PASTURES

By Debbie Furber

Common tansy and scentless chamomile love the wet

A

string of wet years has created perfect conditions for common tansy and scentless chamomile to gain a foothold in pastures beyond their traditional stomping grounds.

Both are prolific seed producers. Tansy yields up to 25,000 seeds per stem and one scentless chamomile plant produces anywhere from 300,000 to a million seeds a year. The seeds are spread by drifting snow, run-off, birds, animals, vehicles, equipment, contaminated seed, grain and hay and germinate readily in any moist disturbed earth.

Both plants often appear in washouts, tire rut, cattle trails and tillage tracks when attempts are made to repair damaged land.

Saskatchewan Agriculture specialists John Hauer and Clark Brenzil, who hosted webinars on controlling these invasive weeds this spring advise having a plan of attack for dealing with any invasive weed before they take hold of a field.

Invasive weeds, by definition, are not native to Canada, so no natural checks and balances are around to control them. Tansy and scentless chamomile arrived with European settlers. They may have hitched a ride in contaminated seed or been brought in deliberately as ornamentals, or in the case of tansy, for medicinal purposes.

Both are seen as noxious weeds in many jurisdictions across North America, meaning they present enough of a danger weed control officers can order they be controlled.

Control almost always requires a number of steps. “There is no one-time simple fix,” says Hauer. The first move is to identify what you’re fighting.

Common tansy is a perennial with distinct clusters of yellow button-like flowers at the tops of several purplish-red stems growing from the same root with sharply divided, fern-like leaves.

It contains compounds that give it a distinct odour when disturbed and produce the neurotoxin thujone that can affect cattle when large amounts are consumed. Deaths are rare, however, because cattle find tansy unpalatable, although they will eat young growth when desirable forage is scarce. The most common outcome from too much tansy is abortion.

Scentless chamomile is an annual that

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C a t t l e m e n · m ay 2 0 1 4

Persistence is needed to control common tansy (l) and scentless chamomile.

can act like a biennial or short-live perennial. It’s often confused with another invasive plant, ox-eye daisy, because the white flowers with prominent yellow buttons are almost identical. The most visible difference is the fine, carrot-top-like leaves of scentless chamomile. This weed blooms continuously and the seeds germinate throughout the growing season. Fall seedlings can overwinter in the rosette stage.

Cattle avoid grazing scentless chamomile, as well, when they have a choice.

Sheep and goats, on the other hand, readily consume it as well as tansy so they offer a control option for these weeds.

Scentless chamomile seeds can survive digestion in the rumen, but it’s not known whether the same holds true for tansy seed.

Both species are most likely to first appear in areas where snow accumulates and soil stays moist, such as ditches, field perimeters, fencelines, shelterbelts, lowlands, runs, riparian areas, stock trails and watering areas.

For small patches the best control tool is a shovel to get all the roots. Bag all the plant material and either burn it or dump it in a landfill. Don’t leave anything behind.

Immature flowers on uprooted plants left on the soil can still produce viable seed.

Tansy has a slightly rhizomatous (horizontal) root and small bits left intact can

PHOTO–SMA

send up new shoots. Scentless chamomile has big bunchy roots capable of holding enough soil to give the plant a new start if left on top of moist soil.

It is important to return to the site every so often to check for escaping plants. Seed from both weeds remains viable for at least 10 years in the soil and potentially as long as 25 years.

Tansy is highly competitive and chokes out productive perennials, especially in unfertile soils.

Scentless chamomile is more of an opportunistic weed, persisting around the perimeter and in low areas and sneaking into bare ground when conditions allow.

An overall control strategy is to maintain healthy, competitive forage stands by not overgrazing. Fertilizing may help improve vigour of the desirable species.

Control

Once weed patches spread beyond what can be removed manually, you’ll need an integrated approach to manage the infestation.

Common tansy

Mowing tansy before flowering limits seed production but won’t get rid of the problem. Depending on the site and year, you may have to mow a second time later on to keep the regrowth from flowering.

www.canadiancattlemen.ca

PASTURES

Hauer says the most effective approach is to combine mowing with herbicide control of the regrowth. There are several broadleaf herbicides available to control or suppress tansy, however, they take out legumes as well.

Spot spraying may be an option for patchy infestations.

Spot spraying with a non-selective herbicide such as glyphosate will kill tansy, but you’ll lose all of the plants surrounding the tansy leaving a sunny opening conducive to tansy seed germination.

He advises consulting a specialist to select the product that will work best in your situation. Some have restrictions near waterbodies, while others carry over in the soil for up to five years. That provides superior weed control, but has implications for subsequent annual crops.

“Follow up long term. Don’t just spray and forget about it. Go back to make sure and spray again,” Hauer says. “A little expense early will save big expenses later.”

Cultivation in itself isn’t reliable and may add to the problem because of regrowth from roots dragged around the field and soil disturbance that promotes seed germination. Plan to follow up with a herbicide treatment.

And clean your equipment after it’s used in fields infested with tansy and scentless chamomile. Likewise, don’t transport seedcontaminated bales.

If the infestation is severe, consider turning the forage crop over to annual crops for several years of regular applications with crop herbicides.

A consortium of public and private funders in Canada and the U.S. has been working to identify tansy pests native to Europe that could be introduced in North America for biological control. Six insect species have been selected for further testing to ensure they target tansy alone.

A Saskatchewan ADOPT (agriculture demonstration of practices and technologies) project comparing chemical and biological control of scentless chamomile in grass-alfalfa stands found insects offered no immediate control in 2011 and 2012. The report is available on the Saskatchewan Forage Council website, www.saskforage.ca.

Mowing prevents initial seed, but buds will erupt from side branches below the cutting height. Ensiling fields with wide-

spread established infestations and feeding the silage onsite showed mixed results.

As with tansy, herbicides and rotating with annual crops is another option.

“Prevention is the key and the cheapest way of dealing with it,” Brenzil says. “Once introduced, find it and eradicate it right away — no survivors; no situation where you say, ‘I’ll get it next time,’ because with potentially a million seeds per plant, next time may be over the next 10 to 15 years.” c

Scentless chamomile

Brenzil says two of three insects from Europe that attack scentless chamomile appear to have established in Saskatchewan since their release in the ’90s.

The seed-head weevil consumes 10 seeds in its lifetime, which isn’t much relative to the 150 seeds in a single scentless chamomile flower, however, as many as 14 weevils have been found in a single seed head.

The gall midge is a prolific insect that produces four generations a year. Most of its lifespan is spent inside galls formed at the growing points, which alter the growth of the plant. Spreading the midge to new locations is as easy as moving plants with galls. www.canadiancattlemen.ca

C a t t l e m e n · m ay 2 0 1 4

11

 BREEDING

By Debbie Furber

Back patches improve visual heat detection

W

hen you’ve got a lot of females to inseminate do you use estrus synchronization or visual detection with the new heat patches?

It doesn’t have to be either/or, says Charles Munro, the owner-operator of All-Around Livestock Sales and Services of Standard, Alta. Some of his clients may want to go with synchronized fixed-time AI for heifers and 21-day visual heat detection for cows to give themselves some breathing room during the first part of calving.

That’s a viable option now with the new heat patches.

Munro gave the self-sticking Estrotect heat detection patch a good test in Saskatchewan last summer when he AI’ed 800 cows at the One Earth Farms’ Ringstead Ranch near Lanigan.

In this instance he and a helper arrived a day early to place the patches but Munro says producers can look after this step themselves if they prefer. One patch is placed on the spine between the pins and the hook bones.

Mounting activity rubs off the grey coating on the patch revealing a fluorescent colour beneath. The trick is to wait until at least half the patch is pretty much solid

fluorescent before pulling the cow. Pull one with only a few scratches of colour showing through and you will be too early.

In his experience, based on breeding 2,000 cows and heifers last summer alone, Estrotect patches are reliable. They stick well and the coating is durable enough to withstand the elements or being rubbed off by just a few mounts.

He and his right-hand man, either AJ Hop or Art Huston, start riding the pasture shortly after sun-up rounding up cows with brightly coloured patches. As soon as a group is gathered in the corral, they put them through the AI chute. This routine continues until 11 a.m when they take a break, then start up again from 4 p.m. until the day’s work is done.

Worn patches are removed when the cow is bred and, at the producer’s discretion, replaced with one of another colour before it is released. The second patch helps identify cows that come back into heat either for their own records or early culling. Bred cows are released in groups to an adjoining pasture with the cleanup bulls.

When a calf doesn’t follow its dam into the corral the cow is sprayed on both sides with paint to mark it as bred and sent back to the pre-breeding pasture.

It’s a fairly rigorous routine, but with the heat patches it takes far less time than observing the cows and is more reliable.

Munro consults with his clients ahead of time to design the type of program for their situation, whether it’s a purebred or commercial herd, the number of animals, and available facilities. He then negotiates a fee for service based on what the producer wants him to look after.

He also likes to visit the farm ahead of time to see the facilities and discuss what’s required. He supplies the manpower, horses, and a trailer with all the AI supplies. As a Genex rep, he can also supply the semen, or the clients can make their own arrangements for semen.

Munro’s expertise in AI was built up over five years as an AI technician with Eastern Breeders and operating a dairy near Ottawa. He figures he’s inseminated at least 30,000 cows during that time.

“I see AI as helping make cow herds better, faster, says Munro. “We haven’t seen the pounds of gain changing year over year in beef cattle, not like dairy has been able to do (with milk) because of AI. “A big advantage of AI is better genetics than what the average ranch could afford

Th e patc h te l ls you w h en to breed

Don’t Breed

Breed

Estrotect patches are currently available from AI companies listed at www.estrotect.com.

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www.canadiancattlemen.ca

BREEDING

to pay for a bull — and I’m easier to get along with!”

Semen straws range from $25 to $40, even less with volume discounts. Adding the cost of a technician and other supplies, it will still be competitive with buying a $5,000 bull, using him for three or 3-1/2 seasons and getting $1,800 when you ship him. Right there, you’re looking at $1,000 a year. Then there will be $800 minimum in feed costs, and veterinary expenses for breeding soundness exams, not to mention extra facility maintenance, bumping it up to around $80 per cow.

The conception rate with AI is generally 50 to 60 per cent, sometimes 70 per cent and can be 85 or 90 per cent if all the stars line up, he says. At the end of the day, you’ll have a more consistent calf crop because you can use the same AI bull on several hundred animals.

A synchronization program will help get more cows calving in a one-week period early in the breeding season translating into heavier calves at weaning.

Sexed semen is the latest advancement in AI technology. It’s already available, but

“ A big advantage of AI is better genetics than what the average ranch can afford to pay for a bull — and I’m easier to get along with.”

Charles munro

conception rates are still slightly below that for unsexed semen, Munro says.

“Not every bull has semen that sorts easily. It’s like the start of AI. There were bulls that didn’t freeze well — the semen wasn’t viable after freezing. It took time to find bulls that would freeze well. If they find great sorting bulls, just think what it could do for commercial herds.”

Munro established All-Around Livestock Sales and Service in 2006 to provide contract pen checking and pasture riding services for

feedlots and ranches in addition to breaking, training, and trading working horses.

A big part of his business is pen checking and health services for feedlots in Alberta and Saskatchewan. Crews are assembled as needed for each job and work under his supervision, but because the feedlot work tapers off from spring through summer, adding AI services two years ago fills the gap to help retain year-round employees.

For more information contact Munro at 403-701-1548. c

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C a t t l e m e n · M ay 2 0 1 4

13

 vet aDv i c e

Trichomoniasis is still a threat

T

richomoniasis, abbreviated “trich” and pronounced “trick,” is a highly contagious venereal disease that can result in large numbers of open cows. While it is certainly not a new disease threat, the prevalence has increased dramatically in recent years across the northern tier of the U.S. and gradually edged its way onto ranches in Canada. Venereal diseases in most domestic animals have one thing in common.

In males the effects are limited to that of asymptomatic carriers, whereas the negative clinical effects occur in the females.

Trich is caused by the protozoan parasite Tritrichomonas foetus, which lives in the cow’s reproductive tract and on the surface of the bull’s penis. This organism has a close cousin, Tritrichomonas intestinalis, which lives in the intestinal tract and causes no problems other than occasionally interfering with diagnostic tests. Immunity against T. foetus is short lived and cows often become reinfected if exposed to infected bulls.

Trich control programs are built on two basic prescripts: first, trichomoniasis needs to be a reportable disease, and second, a clear understanding that Trichomoniasis foetus walks into herds via infected bulls, cows and heifers.

The Texas program is established around five principles: • Bulls entering the state must be officially and permanently identified.

• Breeder certification that young bulls are “virgin” (24 months or younger and never commingled with female cattle).

• Non-virgin breeding bulls and bulls older than 24 months have one negative real-time PCR test, or three consecutive negative culture tests not less than seven days apart within 60 days of entering the state.

• Bulls are accompanied by an official certificate of veterinary inspection.

• Positive bulls are slaughtered.

Other states like North Dakota prohibit the sale of open cows back into breeding herds.

Good diagnostic tests are available for trich. Tests based on culture require bulls to be tested three times, one week apart, with no breeding activity between tests. In the last few years, diagnostic laboratories have moved to polymerase chain reaction (PCR) assays for detecting trichomoniasis. While PCR tests are very sensitive and detect trich in low numbers, they lack specificity, meaning they can mistakenly identify other organisms that share similar genetic codes with T. foetus. Positive PCRs require verification. The highly sensitive nature of real-time PCR test means pooled samples from several bulls can be screened at one time making testing for trichomoniasis more affordable and feasible during routine breeding soundness examinations. Work at the Western College of Veterinary Medicine in 2013 demonstrated pooled sampling for trichomoniasis testing can be an effective screening tool.

Trichomoniasis can devastate conception rates and profitability.

Risk factors include: • Bulls three years and older are often the primary carriers.

• Cow commingling, adding new untested bulls and retaining open cows are key risk factors.

• Cows infected with T. foetus have calving intervals exceeding 90 days.

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• Higher infection rates increase the loss. In trials when bull infection rates increased from 20 to 40 per cent, calf crop losses increased from 14 to 50 per cent compared to uninfected herds.

• Trichomoniasis is insidious and often goes undetected, spread by non-clinical carrier bulls with only occasional signs of infertility in females such as gradual lengthening of the calving interval.

Once it is diagnosed some management practices that need to be considered in designing control programs include: • Annual testing of bulls and culling the positives prior to breeding season.

• Good fencing to prevent entry of infected animals — both male and female.

• Avoid communal grazing of cattle.

• Purchase only virgin bulls or heifers as replacements. Use of virgin bulls less than three years of age also decreases the probability of a permanent carrier state.

• Keep the average age of herd bulls as young as possible.

• Because this disease is acquired through venereal contact, preferentially use animals that have had no known previous sexual contact.

• Breed and pasture purchased cows and heifers separately — at least through to the next breeding season.

• Reduce the breeding season to 90 to 120 days and perform a pregnancy exam 45 to 60 days thereafter. A long breeding season masks productivity losses due to T. foetus.

• Control other diseases that affect reproduction like campylobacter, BVD and leptospirosis through vaccination.

• Know the disease status of herds from which bulls are purchased and buy only test-negative herd sires.

• Breed the same bulls to the same groups of cattle from one breeding season to the next.

• Cull open cows or place them in a high-risk herd to reduce the spread to susceptible cows. Serious consideration should be given to culling open and late-calving cows as they run the risk of being infected, or may be carriers.

• Avoid buying open and short-bred cows (less than 120 days).

• Create high- and low-risk herds. Virgin heifers and cows unlikely to have been exposed to T. foetus would be classified as low risk. Do not add cattle to low-risk groups until you can verify their diseasefree status.

• Isolate any cow that aborts or has a uterine discharge and culture her for the presence of trich. If she is not culled, she should be placed in the high-risk herd and given sexual rest.

• Artificial insemination reduces the chance of disease transmission.

In the face of a trich problem, some veterinarians suggest it makes sense to test bulls before you turn them into the breeding field, then repeat the tests when breeding season is over. That will give you the status of both the bulls and cows. If the bulls are negative, there is a high probability that the cow herd is also negative. c Dr. Ron Clarke prepares this column on behalf of the Western Canadian Association of Bovine Practitioners.

Suggestions for future articles can be sent to Canadian Cattlemen (gren@fbcpublishing.com) or WCABP (info@wcabp.com).

www.canadiancattlemen.ca

 Nutriti o n

By John McKinnon

Something to Think About!

F

eed, particular the cost of putting up preserved forage is one of the largest factors influencing the cost of maintaining the cow herd.

In cost-of-production studies carried out by the Western Beef Development Centre, winter feed costs over a five-year period averaged 30 per cent of total cow costs and in some cases reached 50 per cent of the total. Providing high-quality forage to meet nutrient demands of the overwintering cow is one of the most effective strategies you can employ to reduce feed and overall wintering costs. The issue for many producers at haying or ensiling time however, is the balance between quantity and quality. It has been my experience that too many beef producers opt for quantity versus quality. While there are many reasons for this (i.e. weather, labour, need for feed), often the decision is influenced by a lack of understanding of what constitutes forage quality.

The following is a discussion on forage quality, how it changes as a plant matures and why it is important.

Forage quality is influenced by many factors including plant species (legumes versus grasses), colour, leaf content, palatability, mould content and plant maturity. While all are important, it is the latter that I want to concentrate on as maturity at harvest influences critical nutritional characteristics such as protein, fibre and energy content. Hay cut at an early stage of maturity with a high-protein and low-fibre content will be higher in nutritive value than the same hay cut at a more advanced stage of maturity. The question is, why?

If one looks at forage growth, from early spring through maturity, characteristic changes occur that influence the nutritive value of the plant. At a basic level, these changes involve individual plant cells which structurally can be considered to consist of a cell wall and cell contents. The cell contents are comprised of a number of highly digestible nutrients including soluble protein, organic acids and non-structural carbohydrates such as starch, sugars and pectin. These highly digestible components are in highest concentration in young immature plants. The cell wall consists of structural carbohydrates such as cellulose and hemicellulose and associated protein and mineral content. The cell wall also contains a non-carbohydrate faction called lignin which is central to understanding the negative influence of maturity on forage quality.

As a plant matures, the cell wall develops in a defined fashion. In a young plant, the cell wall is a relatively thin layer (primary cell wall) that consists mostly of cellulose and hemicellulose. With advancing plant maturity, a secondary cell wall develops that gives the plant strength

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and rigidity. This secondary cell wall also contains cellulose and hemicellulose, both of which are relatively easily digested by rumen bacteria and thus provide energy to the animal. The issue with advancing plant maturity, however, is that as the secondary cell wall is laid down, the lignin content increases. Lignin is a complex compound that is not digestible. Further, it forms crosslinkages with cellulose and hemicellulose reducing the digestibility of these important carbohydrates. Thus as plants mature, lignin content increases and digestibility decreases. Compounding this negative effect on digestibility is the fact that plant protein content is decreasing with advancing maturity as well. This drop in nutritive value which is a function of reduced digestibility and lower protein levels is the key to understanding forage quality and the need to harvest at the proper stage of plant growth.

We measure forage quality, particularly from a feed perspective, by measuring the relative amounts of these “fibre constituents” of the plant cell wall. Unfortunately “fibre” is not an easily defined term. Forage labs that use wet chemistry methods for analysis will report values for acid (ADF) or neutral (NDF) detergent fibre. Acid detergent fibre refers to the content of cellulose, lignin and ash in the submitted sample while NDF content refers to the cellulose, hemicellulose and lignin content.

Higher ADF values particularly within a forage type will indicate reduced energy content due to the negative association of lignin with digestibility. Neutral detergent fibre is used as an indicator of dry matter intake. Forages high in NDF will provide more bulk to the ration; reduce digestibility and passage rate from the rumen. As a result, dry matter intake is restricted.

Research with dairy cattle has shown that selection for forage varieties with higher NDF digestibility lead to higher dry matter intake and increased milk production. Applying the same principle to the beef herd could reduce winter feed costs as well as the amount of manure left behind in the spring!

What is the bottom line for beef producers? In essence, forage quality revolves around stage of plant maturity at harvest. Cut too late and the hay will be high in ADF and NDF and low in protein. Harvest too early and quality as measured by fibre and protein levels is high but hay quantity is limited. Both legumes and grasses will be at their highest nutritive value while in the vegetative state prior to flowering; however, maximum yield typically occurs at full bloom. Finding the right stage to harvest for your operation is the answer and is something to think about as you watch your hay crop grow over the spring and summer. c

John McKinnon is a beef cattle nutritionist at the University of Saskatchewan

C a t t l e m e n · M ay 2 0 1 4 15

Giving forage and grassland their due First of a regular series of columns by the Canadian Forage & Grassland Association What crop has the largest acreage in Canada? The usual answer is "wheat," which in 2012 was seeded on about 20 million acres. But cultivated forages made up 33 million acres, and more than 36 million acres were in native or unimproved pastures and rangeland.

According to a National Forage and Grassland Assessment in 2012, those acres were responsible for economic activity of $5.09 billion in 2011, following only wheat at $5.2 billion and canola at $7.3 billion.

The forage industry is also the foundation of the dairy and beef industries, which together contribute $11 billion in direct value to Canadian farmers and generate over $50 billion in economic activity.

In other words, forage and grassland are big business, but they're not always recognized as big business, even in the agricultural community.

Five years ago, a group of individuals from across the country met to discuss how to change that by forming a national organization to represent the forage and grassland sector, and the Canadian Forage & Grassland Association was incorporated in December 2009.

We represent a broad spectrum of the industry, including domestic forage and grassland producers and forage product exporters.

Canadian Forage & grassland assoCiation www.canadianfga.ca Ph: 780-430-3020

Our first task was to commission the National Forage and Grassland Assessment, which confirmed what we suspected about the value of the industry. It also confirmed that despite the importance of forage and grassland, it is getting far less research support compared to other crops.

Our next task was to create a forage and grassland research strategy. We are especially concerned about the decline of public forage and grassland research, and our research advocacy group is developing and implementing an action plan to address these concerns.

We have also worked with the Beef Value Chain Round Table and the Beef Cattle Research Council on the Beef Industry Research Strategy to increase investment in forage breeding and productivity research. We also have been striving to increase awareness of the value of forage and grassland to our environment.

The CFGA believes that independent forage variety performance testing is important, and we are providing input into the development and implementation of a national testing strategy. The proposed changes to the Seed Act would end merit testing as a requirement for the registration of forage varieties, and could come into effect in late 2013. If merit testing were no

longer required, registration trials would not be conducted. If this system is not replaced with another, there will be no independent, unbiased data available to compare varieties. The CFGA has developed two surveys for the industry and end-users, and this information will be used to develop a performance testing strategy.

The export sector is an important component of the CFGA and we are working with members exporting to the U.S. and overseas to develop market protocols. Activities have included hosting a visit from a Chinese group interested in Canadian timothy as well as addressing issues in the alfalfa protocol for export to China.

As our membership base continues to expand, the CFGA faces an increasing number of requests to address challenges and opportunities in the forage and grassland sector. But without a checkoff, CFGA depends on the development of creative arrangements with stakeholders, and partnerships are a major priority.

Our sold-out national conference in Olds, Alta. in December illustrates the level of enthusiasm within our industry, and we are looking forward to working with Ron Pidskalny, our new CFGA executive director.

For the latest innovations in hay tools, go to nhsmart.com/hay Š2014 CNH Industrial America LLC. All rights reserved. New Holland is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. NH04149141HT

 COVER STO RY · M A NAG E M E N T

By Debbie Furber

DON’T BELIEVE THE CHATTER…

IMPLANTS PAY “

I

f you can’t manage what you have, you don’t need any more, because as you get bigger, the leaps get bigger but the falls get harder.”

Steven Pylot took these words of wisdom from his dad to heart and made, “get good before we get bigger” the management motto for his family’s livestock operation, Bar P Land and Cattle Co. near Meadow Lake, Sask.

Pylot, a ruminant nutritionist by profession, and his wife, Susan, returned to Saskatchewan to work with his family on the third-generation farm and raise their young family of five. His focus is on developing the beef side, which includes a 300plus commercial Angus cow-calf enterprise and a custom backgrounding lot that may hold up to 1,200 head by the time winter rolls around again.

He’s recently become involved with the Saskatchewan Forage Council and the Saskatchewan Cattle Feeders Association and senses the optimism among producers at meetings he’s attended in recent months. That includes this year’s Saskatchewan Beef Industry Conference, where he spoke about how the use of growth implant technology aligns with his motto.

“Incorporating the use of growth implants into your operation is something you can do right now, this year as planning gets underway for your 2014 calf crop and you’ll see returns by weaning time,” Pylot says.

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C A T T L E M E N · M AY 2 0 1 4

Extensive research over many years beginning with the first growth implant on the market in 1954 has shown that growth implant technology is safe and capable of boosting weight gains on pasture by five per cent.

“Feed costs are low and you get paid by the pound. Prices are better than we’ve seen in years, so now is the time to step out, spend the money and capture that value,” Pylot says. “The research has been done — cattle will respond to implants if the nutrition is in front of them.”

Bar P’s average calving date is mid-May and the calves (except potential replacement heifers) receive their first implant at about one month of age as they are vaccinated and turned out to summer pasture starting in early June.

The average birth weight is 85 pounds and they currently target a weaning weight in early November of 525 pounds for steers and heifers from dams of all ages.

Producers with exotic-cross cattle or heavier milking cows would likely expect higher gains on pasture, he says, but for now this is a happy medium for their operation because it doesn’t tax their grass resources and sets up the calves for valueadded growth in the backgrounding phase.

A pre-weaning implant is coupled with a preconditioning strategy aimed at a seamless transition into the backgrounding program. Once the pairs are brought

home from pasture, the calves are vaccinated and reimplanted, then turned out with the cows for two or three weeks on grazing corn.

The standard recommendation is to implant calves after weaning once they’ve settled onto feed because the effectiveness of the implant will be reduced during the typical period of weight loss directly after weaning. Calves need to be gaining more than 0.75 pounds a day to get a consistent response.

Pylot is going to try to get around it this fall by starting the calves on hay bales and creep feeders while they are with the cows on pasture before hauling them home. This strategy should boost overall gain on the calves and ease them into the feedlot.

He’s never been a big proponent of creep feeding on pasture simply because it increased the cost of production and labour requirement, but is giving it a second look because today’s numbers accounting for lower feed grain prices show that creep feeding will pay well for all classes of cattle.

He knows, too, that creep feeding takes pressure off the pasture and cows.

Pylot had his return on implanting pegged at 12:1 for the single implant at turnout based on a market price of $1.25 a pound for five-weight calves and a five per cent boost in weaning weight. With today’s prices hovering around $2 a pound, even one extra pound of gain on a calf would cover off the $2 implant and the return on

www.canadiancattlemen.ca

management

investment leaps to 20:1 (20 lbs. gain x $2/ pound = $40/2).

On 150 steers that $40 difference from the marketplace equates to $6,000 added gross revenue.

“That could be the difference between upgrading your facilities, hiring more labour to start an AI program or any number of improvements that could help you get better,” Pylot says.

Unless you are aligned with a value chain that pays a premium of at least five to seven cents a pound for cattle raised without growth technology, you will be leaving dollars on the table if you don’t use implants. There are natural beef programs out there paying premiums, but you need to be informed on how premiums will be established. Some don’t accept the use of ionophores to improve feed efficiency either, he cautions.

Another benefit he sees in using implants is the ability to better manage fleshing. With genetics leaning toward maternal and easykeeping cattle, not on the heaviest weaning weights, the calves can definitely get too fleshy in a hurry if pushed beyond 2.0 pounds per day gain during backgrounding. A good implant program lets him bump that up to 2.25 pounds per day gain to hit 750 to 800 pounds for the March market and still keep their local buyer happy because there are fewer fleshy calves.

“Backgrounding steers at 1.5 pounds a day gain may not pay comparable to what it used to,” Pylot says. “Where it has paid in the past is when riding out the market because light calves going to grass got a premium due to the higher grain prices. We are at 85 cents per pound of gain targeting 2.25 pounds per day gain in the feedlot and

that’s paying ourselves well for the work we do, so there is good money in $1.70 steers.”

Managing risk has been a key consideration in how many calves go to grass. With the new price insurance program available in Saskatchewan, they may consider grassing steers because the age and genetics make them well suited for this type of program.

Another speaker at the conference, Dr. Brad Johnson from Texas Tech University, said that with all of the products available today, there are 109 implant strategies for 400-pound heifer calves and 76 for lightweight steers. So, it’s important when designing an implant strategy, to understand the relationship between dosage and effect and the ramifications for the calf as it goes through the production system. That said, in all his years of research, nothing has been found to be more consistent than a steroid implant to improve weight gain on calves. It works like clockwork time and time again.

Getting Better

Pylot comes at other practices that have potential to improve the operation’s bottom line in the same way, recognizing that there are ways to get bigger without adding more acres or cows.

Assessing genomics to identify where improvements could be made is a current area of focus.

On the cow side, he is working at bringing size down from an average 1,450 pounds to 1,300 pounds to conserve pasture and winter feed resources.

He has also been weighing calves and cows at weaning so that the cows can be indexed to identify those that are most profitable.

In past years, they ran an aggressive AI

An implant is something you can do right now to improve the value of this year’s calf crop.

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program but dropped it due to labour and management issues. He realizes that was the wrong reason and is revisiting the idea now that new synchronization technology allows for shorter programs.

Expected progeny differences (EPDs) are important when selecting bulls. He looks at the spread between the weaning weight EPD and yearling weight EPD to choose bulls that will throw calves with moderate weaning weights and lots of potential to gain in the feedlot.

The EPD for milking ability is important because it’s half of the weaning weight EPD, but he leans toward bulls with moderate EPDs for this trait because heavy-milking cows pressure the forage base and can be prone to udder problems in a late-spring calving system.

Pylot is working on implementing a genomics program that includes parentage testing to evaluate their herd sires’ genetic worth early in the game, before calves are a year of age.

“We are questioning some of our new herd sires, so knowing who is who is a start to quickly identifying which families of genetics are the best investment,” he explains. “Being recently approached to be a test herd for gene marker research is also welcoming and exciting.”

Other practices that have helped the operation get better include increasing rotational grazing where feasible, seeking advice from buyers, and requesting seedstock producers to do farm visits and give pointers.

They’ve also set up corn-grazing trials to evaluate its potential at their location in northwestern Saskatchewan. Both corn and bale grazing have proven valuable to their operation. The cows now graze corn until late March and then bale graze through to mid-calving.

The overall management plan stems from the grain side of the business where his brother and father have run farm research trials to test new products and systems to reduce costs and improve production.

Improving yield by 20 per cent is more profitable than just trying to farm more acres.

As for getting bigger, Pylot says their goals are to achieve their profit margins, grow at a manageable rate and not make too many mistakes!

“We will keep trying things to see what best fits our operation. We firmly believe in value adding where we can. Just like any other business, profit and production don’t always mean the same thing. Getting bigger doesn’t always mean more net profit.” c

C a t t l e m e n · m ay 2 0 1 4

19

 Holistic R a nc hi ng

By Don Campbell

SEIZING THE OPPORTUNITY

I

n March I offered three suggestions for benefiting from the better times, invest in your people, manage to improve your land and don’t spend your money before you actually have it. I think these three still stand. This month’s article is about how to adjust to the better times so that we will have more profit to reinvest in our business.

We are experiencing better times in the cattle business. I see two major changes that are happening right before our eyes. One is the rising prices since January. This is a most welcome improvement, one we have been anticipating for a long time. The second change is the introduction of the Western Livestock Price Insurance Program (WLPIP) to B.C., Saskatchewan and Manitoba in early April. A similar program has been available in Alberta for the past four years.

Change always creates opportunity. These two events have created fundamental change in our industry. The question is: How can we as individual producers find and benefit from the opportunities being presented?

The last major change we experienced in the cattle business was BSE in 2003. That was a negative change and there wasn’t a lot of choice following BSE. We either changed or exited the business.

Even though the change was negative it still created opportunity.

Most of the opportunity from BSE was in learning how to be lowcost producers. I think it will be beneficial to carry this learning and these practices forward.

The change we are seeing today is different. It is a positive change.

This time there will be more choice for producers. Some of us will carry on as we have been. Since prices are stronger this group will likely do better without making any changes. Some of us will realize that things have changed. We will seize the opportunity to adjust our businesses and enjoy increased success.

The biggest factor in choosing to change or choosing to continue the status quo will be our attitude towards our business. Do we see ourselves as business people? Do we manage our business or does it manage us? Is life happening to us or are we creating the future we desire?

I don’t think there is a right or wrong here. There is a choice. It is always best to be honest with ourselves. Pick the road you want to travel and enjoy the journey.

I think ranching is a business. It is a challenging, difficult, rewarding business. It is a business I am proud to be part of. To be successful requires good business skills. There is no conflict between ranching being a business and a way of life. In fact the more you treat your ranch as a business the more likely you are to stay in business to enjoy the way of life you desire.

It is essential that we know our costs. We should analyze our businesses at least yearly. Since we are seeing major change in our industry now would be an opportune time to review our business costs and structure.

Here is a suggested list to get you started. I am not suggesting you need to change all or any aspects of your business. What I am suggesting is that it would be helpful to have real numbers to confirm that you are actually operating in the most profitable way in light of our new circumstances. If your current practices are best suited to

20

C a t t l e m e n · M ay 2 0 1 4

these new times stay with them. If you find areas where you might change and be more profitable go for the change.

Topics you might review: 1. Time of calving.

2. Cow size.

3. Cow-calf, cow background, cow yearling or custom grazer.

4. Cost of winter feed.

5. Cost of feeding the feed (yardage).

6. Overhead costs.

7. Profitability.

8. Length of grazing season.

9. Sell out and retire.

10. Prepare for an inter-generational transfer.

The more information we have the easier it will be to make good decisions. If you require education or help to do these things don’t hesitate to follow through. Investing in yourself and your business will pay big dividends.

PRICE IINSURANCE

Now let’s take a look at price insurance. This program has only just been introduced in Saskatchewan so I have never participated in the program. But I followed the Alberta program fairly closely and feel I understand it.

Price insurance will offer us a price at a future date for a given premium. The price and the premium are set three times a week and vary depending on the circumstances. There are three separate programs: a cow-calf, a backgrounder and a finishing program. There will be an opportunity to price our cattle as far out as 36 weeks in the future. Price insurance will set a floor price. If the market is higher than the floor price we will be able to take advantage of the higher price. Price insurance will also be honoured in the event of a border closing with the U.S. Producers who know their costs will be in the best position to benefit from price insurance. Will you be one of these producers?

The choice is up to you.

My personal assessment is that price insurance is a solid worthwhile program. I encourage everyone to become familiar with it.

This knowledge will allow you to decide if the program is of benefit to you. I think price insurance is very favorable to the backgrounding industry. It is also favourable to home-raised long yearlings. The cow-calf program appears to be less favourable. I won’t comment on the finishing program as I don’t have a good understanding of that segment of our industry.

We live in exciting times. There are lots of opportunities. Treating our farms and ranches like a business will allow us to capitalize on the opportunities. I wish you success as we move ahead.

Happy trails. c Don Campbell ranches with his family at Meadow Lake, Sask., and teaches Holistic Management courses. He can be reached at 306-2366088 or doncampbell@sasktel.net.

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 GRAZING

By Steve Kenyon

THE MORE YOU KNOW

Y

ou may have heard me say this before, but I truly believe that the more you know, the more you know you don’t know. There is so much knowledge on so many topics that I overwhelm myself with information sometimes. Just when you think you have a grasp on a subject, you learn something else about it that opens up a whole new area to explore and learn. Education has to be a desire. Never stop learning no matter how old or how wise you think you are.

One of the most common questions I receive at a conference or a seminar is, “Where did I go to university?” My first response is that academia does not have a monopoly on knowledge. I do not have a university degree.

How is it then that I am asked to speak all over North America about ranching, business management and pasture plans? I believe private industry has more valuable information than any academic institution, if you look in the right place. I do not mean to downplay post-secondary education. I have two diplomas in agriculture from Lakeland College and I learned a lot there. All I’m saying is if you go to university or college, don’t stop there. Never stop learning, as other people’s experiences offer some huge lessons for you to learn.

I like to experiment a lot and I’m handy with a calculator. I try not to make the same mistake more than once. As I have learned from my mentors and teachers along the

22

C A T T L E M E N · M AY 2 0 1 4

way, not repeating mistakes already made is a cheaper way to manage a business.

I have taken numerous schools and attended many different seminars and conferences over the past two decades and that is where I developed my business management skills. I found out along the way that production practices are not the key to a successful agricultural business. Business skills are.

Human resources are crucial to my business because without it, I have no business. Getting customers, dealing with clients, acquiring land, dealing with employees are all more important for the success of my business than the actual production practices. It is more important than the species of grass to seed or which bull to buy. If the business is failing overall, does it really matter which type of grass is growing?

The economics and finances of my business are also crucial to my success. Before I learned these business skills, my business was always failing, even though I was really good at production practices. It is possible to be really good at something and still fail because you are doing the wrong thing.

I believe in giving credit where credit is due so here is a quick overview of my journey with a big thank you to all those mentioned below. I began my path learning Holistic Resource Management many years ago. (Now called Holistic Management) I attended a few seminars on it and

read the book. I also had some great mentors that got me started. A special thanks to the Devon Club for allowing me into the group and letting me “pester” them for ideas. It is funny but I was unable to take the full course until a couple of years ago and it was a great review of the information that I had taught myself prior. This is an excellent course dealing with human resources, decision-making and grass management.

I also took the Ranching for Profit school many years ago and it was one of the biggest breakthroughs for my business. I learned the basics of a gross margin analysis. This is a very powerful tool that allows you to look into your business and see which parts are working and which ones are not. It also looks at human resources and the many sides of production. It will jam your head full of way more ideas than it can possibly hold.

I also attended the TEPAP course out of Texas. The Executive Program for Agricultural Producers was six days of business management skills. Not one speaker talked about production. This was a very informative course on business planning, human resources and strategic thinking.

I also had the privilege of attending Dick Diven’s Low Cost Cow/Calf School many years ago. This was a very informative course on beef production and nutrition. I am sorry to say that Dick passed away a few years ago and he is missed by this industry.

The knowledge that he accumulated and shared with the world was incredible, and I highly recommend you look into his teachings. I’m sure you can Google him. He is well worth your time.

One of my greatest role models is a man by the name of Gerald Fry. I’ve only met him a few times but I learned a lot from taking his course and reading his books on genetics and cattle selection. But the one thing I learned from him, on top of the knowledge he shares, is his attitude as a presenter, an educator and a human being.

You will never meet a more humble and down-to-earth teacher in agriculture. I was fortunate to spend a few days sitting around a fire just chatting with Gerald and learned a lot about the kind of person I wanted to be. I believe he reinforces my point behind this article. No matter how smart you are

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GRAZING

or how much wisdom you collect along the way, you never become an expert on anything because there is always more to learn.

On top of these few examples, I attend as many conferences and seminars as I can. I learn something at every one I attend. You learn to pick out the good stuff and let the rest trickle by. I’m lucky now as I am invited to many of these conferences as a speaker and at the same time get to continue my education from the other presenters.

I can also recommend a few books that will help you along your path. Anything by Jim Gerrish is well worth your time and I

also learned a lot from reading books by Greg Judy and Allan Nation.

We are fortunate right now as agriculture producers because our leaders in government also recognize the value in education.

I am happy to see that the Growing Forward 2 program in Canada has funds available to producers for education. It is different in every province so take a look at the Growing Forward 2 website for your province for details about funding available to you.

My business management skills are a blend of every speaker, teacher or mentor I have had, added to by every book, or maga-

zine article I’ve read, rolled up into a package with all the mistakes I have made and all the schools I have attended. I will continue to evolve over time because as you know, I’ll never stop learning and, of course, I’ll never stop making mistakes. Wisdom is acquired with knowledge, not age. Don’t just age… gather wisdom over time. c Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www. greenerpasturesranching.com, 780-307-6500, email skenyon@greenerpasturesranching.com or find them on Facebook.

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C a t t l e m e n · MAY 2 0 1 4

23

 BREEDING

By Debbie Furber

An AI Cowculator

D

r. Cliff Lamb, University of Florida, launched his AI Cowculator app as a free download from iTunes or Google Play last August and an online version this March. There’s also a Facebook page to get answers to questions as you work through the “what ifs” when comparing the impact of fixed-time artificial insemination versus buying bulls.

Lamb braved the cold to speak to Saskatchewan producers this past winter about his seven-day co-synch protocol for fixed-time AI. His seven-day protocol has become popular in the U.S. and even in Brazil where the cows are anything but tame. In all it requires three trips through the chute and is, he says, somewhat foolproof.

The average pregnancy rate across the 18,000 cows he has data for is 58 per cent. He considers this impressive because in temperate regions only 30 to 70 per cent of cows will be cycling naturally at the start of the breeding season. Pregnancy rate (per cent pregnant compared to total number synchronized), however, is the true measure of an AI program’s success.

Lamb says there are lots of pat reasons for using fixed-time AI, but the main one to his mind is overcoming postpartum anestrus, which is greatly influenced by the condition of the cow at calving.

Late-calving cows can take seven years to catch up and that’s if everything goes right from then on. Later cows wean smaller calves and that has implications for your bottom line.

Six years ago, he says, the calving interval on females bred by bulls in the university herd was 120 days. Fixed time AI was implemented in 2008 and by 2012 the calving interval was down to 70 days. That added another $124 to the average calf value in this herd just by shifting the calving date with fixed-time AI. After Lamb’s session in Saskatoon some producers in the audience were curious about how he manages the females that don’t catch, and whether they came back into heat 21 days later.

Lamb says the first natural heat on the open females generally occurs 17 to 23 days after the entire group is inseminated, and potentially 40 per cent of these non-pregnant females could cycle on the same day. That works out to 15 to 20 cows on a 100-head AI program so two bulls would likely be able to handle it.

Beyond that, you’ll need extra bull power but he says throwing all the bulls into one cleanup pasture won’t work. They’ll all be trying to breed all of the cows in heat and fighting will only add to the ruckus. Instead, Lamb suggests dividing the herd into smaller groups and using a normal bull-to-cow ratio.

So why not AI the open cows instead of turning them out with bulls? The problem is that 21 days post-AI is too early to be able to identify those not in calf. One strategy to consider involves placing a CIDR in all of the cows 12 to 13 days after AI and then on day 20 after AI, pull the CIDRs and put a heat detection patch on each animal to aid visual detection. Within 2.5 days, approximately 75 per cent of the non-pregnant cows will come into heat.

For more information contact Lamb at gclamb@ufl.edu, or visit www.saskbeefconference.com to view his presentation. The Excel version of the AI Cowculator is found at http://nfrec.ifas.ufl.edu/ programs/AICowculator.shtml. c

24

C a t t l e m e n · M ay 2 0 1 4

Natural Service sire costs Bull maintenance costs

$600.00

Average purchase cost of bull

$64,000.00

Useful life

4

Salvage value

$0.90

Salvage weight, lb.

1,800

Interest rate used, %

6.0 Cow herd-related costs

Number of cows in the herd

100

Number of natural service bulls

4

Expected bulls for cleanup to Al

1

Weaned calf crop, %

87.5

Average expected weaning weight, lb.

600

Expected price of weaned calf, per cwt

$165.00

Increased costs Additional labour

$4 .1 0

Facilities and equipment

$0.00

Estrous synch products

$13.08

Semen

$30.00

Artificial insemination technician

$15.00

Partial Budget Decision rule $62.21

Gain/loss per exposed cow

$6,220.73

Gain/loss per herd Derived inputs Increased returns

$64.1 7

Decreased returns

$0.00

Decreased costs

$60.22

Increased costs

$62.1 8

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 BREEDING

By Debbie Furber

Deflating Fixed-Time AI Myths Conception rates in these three herds averaged 62, 65 and 76 per cent for an overall average of 67 per cent compared to an industry average of 50 per cent with a range of 40 to 60 per cent.

26

C a t t l e m e n · M ay 2 0 1 4

I

f the advantages of using fixed-time artificial insemination in your breeding program aren’t enough to convince you to give it a try, turn it around and ask yourself, “why not?”

Three Saskatchewan producers who had never used fixed-time AI put that question to the test last spring as part of a fixed-time AI project sponsored by the Rudy Feeder Co-operative and funded by the provincial ADOPT (agriculture demonstration of practices and technology) program.

Saskatchewan regional livestock specialist Travis Peardon who co-ordinated the trial says the results basically deflated many of the myths that seem to keep Canadian beef producers from trying this technology.

The results weren’t a surprise to Peardon, however, as he is going into his fourth season using fixed-time AI on his family’s own cattle herd.

The first myth is that all the calves would

be born on the same day. Peardon says project heifers calved over the course of 10 days even though all were bred within a couple hours of each other.

Another is that conception rates from AI are marginal at best. In fact, Peardon says conception rates in these three herds averaged 62, 65 and 76 per cent for an overall average of 67 per cent compared to an industry average of 50 per cent with a range of 40 to 60 per cent.

The use of a CIDR (controlled internal drug release) device required by the synchronization protocol didn’t cause the test heifers that failed to catch with AI to miss any natural heat cycles. In fact, heifers that didn’t catch with fixed-time AI were turned out with cleanup bulls 10 days later and the calving records show 14 to 25 per cent of them conceived on their first natural heat, approximately 21 days after they were bred AI. In one Continued on page 28

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B R E E D I NG

Continued from page 26

herd, all of those not pregnant after AI conceived on the first natural heat.

Running animals through the chute got easier, not harder during the three passes over nine days required for synchronized AI — another myth squashed. According to these producers having heifers accustomed to routine handling actually became a plus at calving time.

Peardon admits this tight schedule requires a considerable commitment, but seeing the start time is of your choosing he says everything can be arranged months in advance.

The producers never put a dollar value on their own time but the general consensus was that any extra time spent during breeding season would be saved at the start of calving season. In fact, the time involved was generally less than they anticipated.

Each farm randomly designated half its heifers to the AI group, which worked out to 21 at two locations and 29 at the other. With those numbers it took about an hour for each step in the protocol recommended by Dr. Colin Palmer, a theriogenologist at the Western College of Veterinary Medicine: Day 0 – inject estradiol benzonate and insert a CIDR progesterone-releasing vaginal implant.

Day 7 – remove the CIDR and inject cloprostenol.

Day 9 (54 to 56 hours after CIDR removal) — AI and inject gonadotropin-releasing hormone.

The producers did most of the work and bought the semen but AI technician Craig Thoms of Saskatoon inseminated the heifers. Richard Carlson, Genex Co-operative’s Western Canadian beef sales manager, also helped out.

Compared to turning the bulls out this is a complicated process but the three cooperators on this project didn’t have any problems following the schedule. Peardon recommends writing the protocol on a calendar along with the drugs to be used on critical days just to avoid any mix-ups.

The drugs are available from veterinarians but Peardon suggests arranging for them ahead of time to be sure everything will be available when it is needed.

Another caution is to ensure heifers or cows are in good body condition, on a rising plane of nutrition and cycling before you start. Nutrition is the most important factor in the success of any breeding program,

28

C a t t l e m e n · M ay 2 0 1 4

Actual Calving Data Heifers Bred in Each Estrus Cycle (%)

Herd 1

FTAI group

Fixed-time AI

1st natural heat

2nd natural heat

3rd natural heat

total pregnant %

65

25

0

10

100

60

20

10

90

14

17

N/A

93

40

33

14

86

24

0

0

100

0

N/A

N/A

95

Bull group Herd 2

FTAI group

62

Bull group Herd 3

FTAI group

76

Bull group

Calving dates for the bull group in Herd 3 were not recorded. None of these heifers calved as a result of bull breeding in the first natural heat. No reason was apparent. All heifers were checked by a vet before breeding.

including fixed-time AI. No protocol will override a lack of condition or low fertility.

At times the amount of performance and genomic information available on AI sires today can be overwhelming but Peardon says this is really one of the benefits to breeding AI because added data improves the accuracy of the EPDs on a sire and improves the chances that you will make the right selection for your herd — all for quite a bit less than you would pay for a bull of the same calibre.

Peardon initially started using fixed-time AI to improve weaning weights in his own family’s commercial herd. His dad became convinced on the technique when their first-calf heifers started weaning heavier calves than their mature cows.

In this project, the cost of natural service worked out to $71 per calf based on an average cost for a bull of $4,000, a salvage value after four years of $1,500, depreciation at $2,500, $1,000/year to cover yardage/feed/pasture, a 10 per cent death and vet costs of $100/year for a total of $8,500 to get 120 calves sired.

That was $24 less than the $94 it cost per calf from the AI program that included $25 for semen and $26 per calf for the drugs and related costs. The cleanup bulls, which were billed at 40 per cent of the cost of natural service.

Profit was calculated on the difference in weaning weight between AI and natural-service calves. In the three herds AI-sired calves averaged 14, 27 and 174 pounds more than the natural-service calves for an overall average difference of 72 pounds per calf.

Based on calves selling for $1.55 per pound the profit from this weaning weight advantage worked out to $246, $18.01, and -$1.34, or an average profit of $87.56 per calf on all three herds.

This total doesn’t account for any future benefit from the reproductive momentum that comes from having a higher percentage of your heifers calve during the first 10 days of the calving season. More on this concept of reproductive momentum can be found in our article Front Load the Heifers with Dr. John Campbell on page 20 in the March 2014 issue of Canadian Cattlemen.

Two of the co-operators were intrigued enough to sign up for a followup project, breeding some or all of the heifers from both groups last spring to AI sires around 45 days postpartum. Keeping first-calf heifers on track with the second calf is a common problem and if fixed-time AI works well on second calvers, Peardon says it might be a way to get the second calf on time and set the heifers up to become productive cows for years to come.

One immediate finding from this second project was that fixed-time AI on cows with calves at foot didn’t prove to be the hassle some make it out to be. They didn’t have any trouble sorting off the calves before running the moms through the chute for each treatment.

Another project involving six commercial producers is set to start this spring using the same protocol with AI at the normal time and again 24 hours later. The thinking here is that the timing of the first AI may be just missing the heat. If this improves conception rates over the first trial, it may be financially feasible for farmers to AI more heifers than they need for replacements, preg check 30 days after breeding, and sell the open heifers when the price for grasser cattle is relatively high.

The results from these ADOPT projects will be posted at http://www.agriculture. gov.sk.ca/adf as they become available.

Travis Peardon can be reached at 306-8675504 or travis.peardon@gov.sk.ca. c

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 researc h o n t h e r eco r d

By Reynold Bergen

Better Tests for Trich and Vibrio

T

richomoniasis (trich, or “trick”) and bovine genital campylobacteriosis (vibrio) are venereal diseases that cause early embryonic death, repeat breeding, large numbers of open cows at the end of the breeding season, an extended calving season, and enormous economic losses. The microbes that cause trich and vibrio live in the reproductive tracts of infected cattle, but don’t enter the tissues or the bloodstream. Cows and heifers can clear these infections but bulls generally can’t, because the microbes live in the folds of the foreskin.

These diseases are difficult to treat, because injectable antibiotics generally won’t reach the microbes through the bloodstream. The microbes don’t enter the bloodstream, so they don’t encounter white blood cells, resulting in a weak immune response.

This means that animals can be reinfected, and that blood-based diagnostic tests don’t work very well.

Diagnostic tests for these diseases use samples collected from the bull’s foreskin. In the past, samples were transported to a lab, cultured to multiply the microbes, and examined under a microscope. This worked for trich, but vibrio rarely survived the trip to the lab and often went undetected.

But even dead organisms have DNA, so DNA-based tests do not need live microbes. Rather than culturing microbes to multiply them, a polymerase chain reaction (PCR) technique can multiply specific sections of DNA. These tests are very sensitive, meaning that the test will nearly always detect the target DNA, even if there were very few microbes in the sample. This also makes it possible to accurately test “pooled” samples, in which individual samples are still collected, but subsamples are combined and tested as a group. If a pool tests positive, the original samples can be retested to identify the infected individual.

Pooling can make testing more affordable during routine breeding soundness examinations.

However, PCR tests can be less specific, meaning that they can confuse closely related microbes that have similar DNA sequences. This can produce a “false positive” result, where a “clean” bull is misdiagnosed as infected.

For example, a PCR test might detect a harmless fecal trichomonad and mistake it for trich. Similarly, other Campylobacter species (commonly found in the digestive tract) could be mistaken for Campyolbacter fetus venerealis (which causes vibrio).

Steve Hendrick, Cheryl Waldner, and others from the Western College of Veterinary Medicine led a Beef Cluster project that evaluated DNA-based tests for these two diseases.

Objectives: To determine whether pooled samples could be accurately tested for trich, and whether a PCR test for vibrio developed at the University of Saskatch-

30

C a t t l e m e n · M ay 2 0 1 4

ewan could correctly classify bulls as positive (infected with vibrio) or negative (clean).

What They Did: Trich: Steers and virgin bulls (which could not have been infected) were sampled and tested for trich and used as the negative samples. Positive samples were collected from one infected bull. Pooled samples were then made at seven ratios: 1/2 (where one sample was from a positive bull and one sample was from a negative steer or virgin bull), 1/3, 1/5, 1/10, 1/15, 1/20, and 1/25 (where one sample was from a positive bull and 24 negative samples were from steers or virgin bulls). In all, 217 pools were tested with real-time PCR. Vibrio: Bulls suspected of being infected with vibrio were sampled at the University of Saskatchewan so that the sample could be cultured before the microbe died.

Thirteen infected bulls were sampled several times to obtain positive samples. Uninfected virgin bulls were tested by both culture and PCR to determine the falsepositive rate. These samples were then used to determine how often the PCR test correctly identified the infected bulls as positive.

What They Learned. Trich: The percentage of pooled samples that tested positive ranged from 90 per cent (1/10 ratio) to 97 per cent (1/3 and 1/5 ratios). Pooled sampling for trich testing is an effective screening tool, but the optimal pool size will depend on the expected number of positive bulls. Smaller pools should be used when more positive bulls are expected. Three tests per bull are still recommended before considering them negative.

Vibrio: 85 per cent of the samples from the infected bulls tested positive. This is much better than the culture tests, which detected 38 per cent of infected bulls under field-like conditions. The PCR test did not work as well in samples collected at temperatures below 5 C. Eightyfive per cent of virgin bulls tested negative with the PCR test (15 per cent false-positives). While not perfect, the PCR test for vibrio is an improvement on what has been available to practising veterinarians.

What It Means: This checkoff-funded research has led to the development of diagnostic tests that are more sensitive and economical than traditional culture-based tests for trich and vibrio. These tests are available through Prairie Diagnostic Services in Saskatoon.

The Beef Research Cluster is funded by the National Checkoff and Agriculture and Agri-Food Canada with additional contributions from provincial beef industry groups and governments to advance research and technology transfer supporting the Canadian beef industry’s vision to be recognized as a preferred supplier of healthy, high-quality beef, cattle and genetics. c Dr. Reynold Bergen is science director of the Beef Cattle Research Council.

www.canadiancattlemen.ca

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 CCA repo rts

By Dave Solverson

Cool case gets a reboot

C

alving is always a time for optimism and this year the outlook is especially good with strong beef demand and prices at record highs. Producers who toughed it out and survived the last decade are finally seeing the prices and market conditions that make it all worthwhile. The current price environment comes as a result of the global shortage of beef which is supporting the record prices.

Producers in Western Canada can and should make the most of the price scenario through the Western Livestock Price Insurance Program (WLPIP).

Through the insurance available, producers can put a floor price on calves that is higher than ever before.

The market scenario is impacting heifer retention numbers and will continue for the foreseeable future.

Going forward the supply picture will likely remain tight for the next four to five years.

Calving is a busy time and it’s at times like these that I am thankful for my family and friends for going the extra mile to help out at home. It is also a natural time to think about the future and more to the point, the direction the industry is headed. The Canadian Cattlemen’s Association (CCA) has been working with stakeholders to develop a national strategy for industry. A comprehensive draft strategy has been developed to date, which aims to achieve targeted industry goals that are aligned with the industry’s vision and mission under four key pillars. This highly collaborative process is still in its early stages and the plan will continue to be refined to strategically address the larger issues identified by industry going forward. I am excited about this process and look forward to seeing the project through.

The project is in very capable hands of staff at the CCA, and I’d like to thank them for the tremendous amount of work that has gone into this effort to date.

The work CCA does is diverse and reflects a range of issues that are important from an industry sustainability perspective. The trade file continues to be active. On the country-of-origin labelling (COOL) litigation front, in April the CCA and its coalition partners filed a supplemental brief in the United States Court of Appeals for the District of Columbia Circuit regarding its request for a preliminary injunction to block the U.S. Department of Agriculture’s (USDA) May 2013 mandatory COOL rule. This information was part of the rehearing of the case on May 19 by the full court. This change of events happened on April 4 when the U.S. Court of Appeals for the District of Columbia Circuit vacated the March 28 ruling that had left in place a lower

32

C a t t l e m e n · m ay 2 0 1 4

court’s denial of the preliminary injunction sought by the coalition.

The requested preliminary injunction would block implementation of the USDA’s May 2013 final rule on mandatory COOL. The CCA is encouraged that the full court will rehear the case on May 19 and review the case law at the centre of the dispute. In our view the April 4 development is particularly significant as the rehearing was initiated by the Appellate Court itself. The CCA will participate fully in the en banc process.

The development is another step in the ongoing battle over COOL. The cost of COOL to Canadian producers and industry is unacceptable and CCA will continue until a viable remedy is reached.

CCA officials accompanied Agriculture and AgriFood Minister Gerry Ritz on a week-long trade mission to Korea and Japan in early April. The CCA fully supports the implementation of the Canada-Korea Free Trade Agreement so the current 40 per cent tariff can be phased out. In Japan, the CCA’s objective is that Canada negotiate the elimination of both the 38.5 per cent tariff and the safeguard trigger (tariff increases to 50 per cent if imports increase beyond a set formula) in either the Trans-Pacific Partnership (TPP) or in a bilateral agreement between Canada and Japan.

Efforts on the Canadian Roundtable for Sustainable Beef (CRSB) continue, with CCA staff in Australia for the most recent meetings that include agreeing on a definition of sustainable beef production. The CRSB draft principles and criteria for global sustainable beef production, processing and retail are open for public comment until May 16. The CCA will continue its efforts in this area. Also on the sustainability front, progress continues on the Canadian Cattlemen’s Foundation and I look forward to talking more about that in the near future.

Of course there is plenty more work going on at the CCA. Producers in Saskatchewan will be able to find out more in June at a CCA Town Hall to be held in Moose Jaw. The CCA Town Hall will be held on June 8 in conjunction with the Saskatchewan Stock Growers Association (SSGA) annual general meeting, which will take place on June 9-10. The Saskatchewan Cattlemen’s Association (SCA) will co-host the town hall.

This will be my first town hall as CCA president and I look forward to the presentation. These meetings offer a great opportunity for producers to meet with CCA leadership and managers and learn from them first hand about the work the CCA does on their behalf. c

Dave Solverson is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

and Canfax Research Services, divisions of the Canadian Cattlemen’s Association

BeefWatch

 Cattle prices across North America are signaling cow-calf producers to expand. How producers respond to that signal can be limited by weather and future market expectations. The January 1, 2014 cattle inventory reports showed stabilization in the U.S. industry as improved pasture conditions and feed supplies have halted the liquidation. North of the border inventories were down slightly, which is not unexpected in the consolidation phase.

Canadian Inventories — no growth in sight!

Total cattle inventories on January 1 were down 0.7 per cent at 12.2 million head. Beef cows, dairy heifers, beef heifers for slaughter and calves were all down around one per cent. Beef cow inventories were down 0.8 per cent at 3.9 million head. This wasn’t surprising given the much larger cow marketings in 2013.

The largest declines were seen in Manitoba (-5.5 per cent) and Quebec (-2.7 per cent). This was followed by relatively steady numbers in the Atlantic provinces (-0.5 per cent), Alberta (-0.3 per cent), Saskatchewan (+0.2 per cent), British Columbia (+0.4 per cent) and a slight increase in Ontario (+1.1 per cent).

The 2013 calf crop was down one per cent or 40,000 head; however, much larger feeder exports last fall and this spring will leave fed cattle marketings decidedly tight in 2014. Alberta and Saskatchewan cattle-on-feed numbers were 10 per cent higher on March 1 compared to last year.

This occurred for a number of reasons (1) a larger number of calves came to market last fall; (2) an attractive replacement ratio encouraged feedlots to sell fed cattle at lighter weights in the first quarter; and (3) the ability to lock in profitable margins made it attractive to place feeders even canadian cattle inventories Jan. 1 (1,000 head) 2013

2014

% of year ago

Bulls

210.8

214.0

1.5%

Dairy cows

960.5

959.1

-0.1%

Beef cows

3,935.2

3,905.0

-0.8%

Dairy heifers

451.2

446.2

-1.1%

Beef heifers (breed)

542.0

542.3

0.1%

Beef heifers (slaughter)

974.2

963.9

-1.1%

Steers

1,248.6

1,241.8

-0.5%

Calves

3,982.5

3,942.7

-1.0%

Total

12,305.0

12,215.0

-0.7%

Source: Statistics Canada

www.canadiancattlemen.ca

 Canadian beef heifers (Breeding Jan. 1) 900 800 Million head

Beef Watch is prepared by the staff of Canfax

700 600 500 400 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

Source: Statistics Canada

at higher prices. These large cattle-on-feed numbers are expected to decline as we move into summer, as fewer placements are available out in the country. The yearling market will be extremely interesting this year as fed marketings are looking to be much smaller by the fourth quarter.

After three years of modest beef heifer retention, bred heifer inventories this year remained generally static at 542,300 head. Beef heifer retention remains well below the 20-year average of 633,000 head. This is a soft number and a lot can change between January and when the bulls get turned out. Higher feeder prices are well above the highs seen in the first part of 2012 and will encourage heifer retention.

The Canadian cattle industry is now in the third year of the consolidation phase. Historically this phase has lasted around two to three years before expansion begins. Due to many market factors it was expected that this consolidation phase could be longer, as much as four to five years. Feeder prices are definitely signalling cow-calf producers that now is the time to expand.

U.S. herd is stable The USDA reported total cattle inventories on January 1 at 87.7 million head, down 1.8 per cent or 1.56 million head.

Inventories have been declining since 2007 and are now 8.84 million head below the 2007 peak. Beef cow inventories were down 0.9 per cent or 255,000 head at 29 million head. The beef herd has declined in 16 out of the last 18 years as productivity improvements (from higher replacement ratios and carcass weights) mean fewer cows are needed to produce the same or more beef. While dry conditions and high feed costs in the first half of 2013 encouraged liquidation, improved pasture and lower feed costs in the second half encouraged producers to stabilize the herd in many regions. The belief that the herd would be able to go into full expansion mode within six months of improved pasture conditions was perhaps overly optimistic.

Continued on page 34

C a t t l e m e n · may 2 0 1 4

33

BeefWatch Continued from page 33 u.s. cattle inventories Jan. 1 (1,000 head) 2013

2014

% of year ago

Total cattle

89,299.6

87,730.0

-1.8%

All cows

38,515.2

38,251.0

-0.7%

Beef cows

29,297.3

29,042.4

-0.9%

Dairy cows

9,217.9

9,208.6

-0.1%

Heifers >500 lbs.

19,133.9

18,751.4

-2.0%

Beef rep. heifers

5,380.6

5,470.8

1.7%

Dairy rep. heifers

4,550.7

4,539.2

-0.3%

Other heifers

9,202.6

8,741.4

-5.0%

Steers >500 lbs.

15,812.7

15,414.9

-2.5%

Bulls >500 lbs.

2,055.8

2,034.8

-1.0%

Calves <500 lbs.

13,782.0

13,277.9

-3.7%

Calf crop

34,279.0

33,930.0

-1.0%

Cattle on feed (all sizes)

13,363.7

12,6953

-5.0%

Global Inventories Steady Global cattle inventories in 2014 are up only 2.4 per cent from 2008, with all of that growth coming from the Indian dairy herd. Other countries have contracted or stabilized. Global beef production is projected to be steady in 2014; while Asian demand continues to grow, albeit at a slower pace than what was seen in 2013. The mediumterm outlook is for grain prices to be lower over the next three to five years with replenished ending stocks. Meanwhile, strong demand will continue to support beef prices. This should encourage beef production from all major producing and exporting countries. The question is: Who will respond the most and the fastest?

Australia had exceptionally dry conditions in the northern part of the continent in 2013, which forced liquidation. Beef production is forecast to decline in 2014 despite improved moisture conditions, although some regions remain dry. Moving forward, strong demand from the rapidly growing Asian market could attract production that would have historically been exported to the U.S. New Zealand and India have dairy-driven production and provide lean manufacturing beef. Both countries are currently focused on exporting to China.  growth in beef production since 2002 Brazil

India

Australia

New Zealand

U.S.

3,000

25,400.0

24,700.0

-2.8%

Source: USDA

Pre-report estimates were expecting beef replacement heifers to be up three per cent; USDA reported them up a modest 1.7 per cent at 5.47 million head. Breeding heifer numbers have been steadily increasing from a low of 5.1 million head in 2011. However, they are still below the recent high of 5.86 million head seen in 2006, which was the last time beef inventories increased. To get back to 2006 levels, breeding heifer numbers would need to increase by a staggering seven per cent. Even with current record high prices and lower feed costs this is unlikely to happen in 2014. Partly because there continues to be uncertain moisture in the states where there is room for the U.S. beef herd to grow. In order for the reported larger heifer numbers to be kept on farms, more consistent rainfall will be needed in some regions this spring and summer.

Without the July 1 inventory survey this is the first look we have of the 2013 calf crop, which is down one per cent or 349,000 head at 33.9 million head. Cattle-onfeed numbers were extremely tight in the first quarter but are expected to increase moving into the summer. While placements this spring will increase supplies this summer, possibly higher than last year, they will not be historically large. Placing cattle now, means they cannot be placed in the future. This means placements this summer will likely be small again, leaving another hole in supplies in the first quarter next year.

34

C a t t l e m e n · m ay 2 0 1 4

2,500 Thousand tonnes CWE

Feeder/calf supply

2,000 1,500 1,000 500 0 -500 -1,000 -1,500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: USDA, FAS, PSD

Beef Cow Culling Rates Cow marketings were up an astounding 22 per cent in 2013 with domestic slaughter up nine per cent and exports up 55 per cent. Marketings were supported by cows being shifted from the fourth quarter of 2012, when the Brooks plant was temporarily closed and cow prices dropped, into the first quarter of 2013. Marketings also increased in the fourth quarter fueled by disappointing calf prices and in spite of lower feed costs. Larger marketings pushed the beef cow culling rate up to 14.3 per cent. This is well above the long term average of 11 per cent and the 2012 rate of 10 per cent.

In the first quarter of 2014, cow slaughter was down a modest 5 per cent from 2013 and down 7 per cent from the three-year average. Cow exports remain large, up three per cent from a year ago. This is not indicative of an industry that is ready to jump into expansion, but one that is taking a more cautious approach.

www.canadiancattlemen.ca

BeefWatch  alberta versus u.s. slaughter cow price spread

 projected break-even versus market price Break-even

$10

$140 Cdn $/tonne

CDN $ per cwt

$5 $0 -$5 -$10

Cash

Hedgeable

YEARLINGS STEER

$130 $120 $110

-$15 Jun-14

Mar - 14

Dec-13

14

Sep-13

13

Jun-13

12

Mar-13

11

Dec-12

10

Sep-12

$100 09

Jan-12

-$20

Source: Canfax, Cattle-fax

Source: Canfax, Trends West

Alberta cow prices were discounted by $6.52/cwt to the U.S. in 2013. This widened in November and December to around $15/cwt encouraging live exports. The spread continued to widen to $17/cwt in the first quarter of 2014 as U.S. cow prices jumped in response to the strong trim market, smaller cow slaughter and limited increase in non-NAFTA imports. The trim market is expected to stay hot throughout 2014, as non-NAFTA countries have multiple options on where to sell their product and North America struggles to expand. Consequently, cow prices are anticipated to make a new record high this year surpassing the $76/cwt average in 2013.

price) were profitable in February and March 2014. Lower feed prices reduced break-evens for feedlots on calves expected to be marketed in May through September. However, feeder cattle prices have moved up so much over the past three months that break-evens moving into the fall will be steady to higher than last year, according to the Canfax Trends program. Yearlings marketed from March through May have lower break-evens, but yearlings placed against August delivery are projected to have break-evens 7.7 per cent higher than last year. Despite the move back to higher break-evens, 2014 is shaping up to be a good year for the cattle feeder with opportunities to hedge a profit.

Record-high cattle prices!

The year started off with a bang and record-high cattle prices for all classes of cattle. Cattle prices were helped by an exchange rate that moved lower in January. Alberta fed cattle prices averaged $136-$137/cwt in the first quarter of 2014 taking fed prices to a whole new level. By August 2013, yearling prices had surpassed 2012 ($142/cwt) and 2001 ($139/cwt) highs. Prices only moved higher since then with Alberta 800- to 900-lb. steers averaging $167/cwt and 500to 600-lb. steers averaged $209.50/cwt in March, surpassing the previous 2012 ($183/cwt) and 2001 ($169/cwt) highs.

Higher cattle prices combined with lower input costs is a recipe for dramatically improved margins. For the first time since January 2012 feeding margins (based on a cash

Trade was Up! Beef exports were up three per cent in volume and 10 per cent in value at 279,300 tonnes valued at $1.3 billion. The small increase in export volumes occurred despite smaller production. A lower Canadian dollar increased export values in 2013, and will continue to do so in 2014. Exports (including live slaughter cattle) as a proportion of beef production was up slightly at 44 per cent in 2013. Over the last decade this has ranged between 39-51 per cent with an average of 45 per cent, putting 2013 just below the 10-year average.

• Exports to the U.S. were up two per cent in volume and five per cent in value at 199,000 tonnes valued at $907.7 million. Reliance on the U.S. market has been decreasing over the last couple of years as demand strengthens in Asia. The U.S. represents 71 per cent of total exports down from 75 per cent just two years ago.

• Exports to Hong Kong and Macau had been stable from 2010-12 around 21,000 tonnes but broke through that in a big way in 2013 to be up 31 per cent in volume and 95 per cent in value at 28,000 tonnes valued at $178 million. Hong Kong moved up to be Canada’s second-largest market in 2013 representing 10 per cent of total exports.

• Exports to Mexico were down 26 per cent in volume and 22 per cent in value at 18,500 tonnes valued at $96.8 million. Mexico dropped to be Canada’s third-largest market in 2013 representing 6.6 per cent of total exports. The

 alberta steer prices $220

AB 550 Steer

AB 850 lb. Steer

AB Fed Steer

Cdn $ per cwt

$200 $180 $160 $140 $120 $100 $80 $60

08

09

Source: Canfax

www.canadiancattlemen.ca

10

11

12

13

14

Continued on page 36

C a t t l e m e n · may 2 0 1 4

35

BeefWatch Continued from page 35

significant decline in Canadian exports to Mexico since 2010 have been due to currency changes, larger domestic production of muscle cuts that compete with imported product and reduced per capita beef consumption as consumers move towards cheaper pork and poultry. Mexican beef imports have dropped by 55 per cent over the last decade.

• Exports to Japan were up 19 per cent in volume and two per cent in value at 14,400 tonnes valued at $70 million. Representing 5.2 per cent of total exports, volumes to Japan have been steadily grow-

Thousand tonnes (product weight)

 canadian beef export volume U.S. China

600

Mexico SE Asia

HK & Macu Russia

Japan MENA

S. Korea Other

500 400 300 200 100 0 02

03

04

05

06

07

08

09

10

11

12

13

Source: Statistics Canada, CFIA

ing and benefited from under-30-month access in February 2013. Further growth is anticipated in 2014.

• Exports to mainland China also took off in 2013 reaching 6,000 tonnes valued at $25 million, up from 1,500 tonnes valued at $5.4 million in 2012.

Chinese beef imports skyrocketed in 2013.

Replacement Ratios Replacement ratios show how much higher feeder cattle prices are per pound of fed cattle. The lower the ratio the fewer dollars a feedlot needs to replace an animal. Conversely, a high ratio implies the feedlot must pay more per pound to replace an animal. Consequently, a higher ratio has negative implications on feedlot profitability, if feed costs are constant. The ratio does not take into account changes in feed costs, which have a significant impact on a feedlot’s willingness to pay for feeder cattle. Lethbridge barley prices in March were down 37 per cent from last year and down 21 per cent from March 2012.

In the first quarter of 2014, replacement ratios were higher in the West compared to last fall, but lower in the East. In the West steer calves were 1.45, still below the first half of 2012 when it was 1.56. Yearling steers in the West were 1.26, also below ratios in early 2012. In the East, steer calves fell to 1.29 and yearling steers fell to 1.16.

Replacement Price Ratio (Replacement cattle price divided by slaughter price) YEAR

QUARTER

Heifer calves (4-5)

Steer calves (5-6)

Yearling heifer (6-7)

Yearling steers (7-8)

Shortkeep steers (8-9)

1.28

1.37

1.19

1.21

1.15

WEST

1.48*

1.56*

1.27

1.31

1.22

Q2 EAST

1.35*

1.43*

1.25*

1.27*

1.22

WEST

1.47

1.56*

1.29*

1.32*

1.22

Q3 EAST

1.34

1 .40

1.24

1.24

1.24

Q1 EAST

2012

WEST

1.41

1.46

1.27

1.30

1.23*

Q4 EAST

1.27

1.35

1.15

1.19

1.1 7

WEST

1.32

1.37

1.14

1.19

1.14

Q1 EAST

1.12

1.24

1.04

1.13

1.10

WEST

1.27

1.35

1.13

1.16

1.10

Q2 EAST

1.10

1.18

1.04

1.10

1.06

WEST

1.16

1.28

1.07

1.12

1.05

Q3 EAST

1.19

1.29

1.12

1.20

1.17

2013

2014

WEST

1.22

1.32

1.15

1.23

1.1 8

Q4 EAST

1.24

1.38

1.13

1.25

1.26*

WEST

1.24

1.32

1.12

1.20

1.16

Q1 EAST

1.14

1.29

1.09

1.16

1.1 3

WEST

1.32

1.45

1.20

1.26

1.18

* Record highs, East and West

36

C a t t l e m e n · m ay 2 0 1 4

www.canadiancattlemen.ca

 prime cuts

By Steve Kay

Focus on Quality

I

f you live within driving distance of a Costco store, I recommend you look at its meat case at the back of the store. You will see a limited selection of cuts and ground beef, of high quality at a terrific price.

Costco is the best example I know of satisfying the value equation for meat. I buy all my “regular” beef at Costco because of its price-to-quality relationship. Even USDA Prime is priced reasonably enough that I often buy a New York strip or rib-eye steak that I can scarcely afford in a white tablecloth restaurant.

As I perused Costco’s beef selection recently, a couple of thoughts came to mind. First and most important, consumers will keep buying high-quality beef despite its record high price. There are millions of discerning beef eaters in Canada and the U.S. who can afford to buy the best, and they know what they want. The key for the beef industry on both sides of the border is to keep producing beef of the highest-possible quality.

A second thought came after I saw Costco’s large trays of ground beef. They reminded me that ground beef is the primary driver of boxed beef cut-out values and beef sales in the U.S. and probably in Canada as well. Close to 60 per cent of all beef consumed at home or away in the U.S. is in ground beef form. So should the industry shift its focus from feeding steers and heifers large amounts of corn for six months if so much beef goes through the grinder?

My answer is an emphatic “no.” The U.S. industry’s greatest strength is that it is the world’s largest producer of high-quality, grain-fed beef. It must stay that way to satisfy the growing global taste for this beef. The same is true for the Canadian industry, the world’s second-largest producer of that same beef.

Second, even if cuts from high-grading carcasses go through a grinder, the high quality is adding value to domestically produced ground beef. This fits perfectly with the aspirations of hamburger chains like Smash-

burger and Five Guys to offer a distinctive burger to their customer and to expand their stores in North America.

These points should be enough to encourage the industry to keep its focus on producing even better beef. Quality will always be rewarded, whether the consumer is in New York, Toronto, Dubai or Tokyo. Consumers are prepared to pay for high-quality beef because they realize that a great steak or burger is an unforgettable eating experience. The North American industry should not fret about its beef being price competitive with that of other countries. It should though ensure that its beef is superior to all other beef.

A North American view of the meat industry. Steve Kay is publisher and editor of Cattle Buyers Weekly.

The key for the industry is to keep producing beef of the highest-possible quality With this in mind, May heralds the start of the annual grilling season in the U.S. and Canada. Our Memorial Day holiday weekend is the biggest beef sales time of the year. May is the best beef-demand month of the year and demand normally increases six per cent from April to May. There are high hopes that consumers will show their preference for high-quality beef and not be put off by historically high prices.

Speaking of which, USDA’s five-area steer price averaged US$146.34 per cwt in the quarter, 16.6 per cent higher than the year-earlier $125.52. Not surprisingly, USDA has now revised its price forecasts for the next three quarters and the year up sharply. Its annual forecast is US$144-$151. A midpoint average would be 17.2 per cent higher than 2013’s $125.89. Who could have imagined that at the start of the year? c

2014 Cattlewomen for the Cure Golf Tournament • Tournament Date – Monday, August 18 • Location – Cottonwood Coulee Golf Course, Medicine Hat, AB • Registration opens May 1 online @ www.cattlewomenforthecure.com/registration.html • This year’s charity – STARS • Over $350,000 donated to various charities over past 8 years www.canadiancattlemen.ca

C a t t l e m e n · M ay 2 0 1 4 37

 manage m e n t

By Dawn Hillrud

Sharpen your Human resource skills Part 3, Recruitment and selection

A

re you hiring the best of the best of those available, or the best of the worst? Are your hiring practices a function of convenience, or sound human resource management (HRM) practices? Employees who fit with the job add value; those who don’t may put your operation at risk (and cause many sleepless nights). Using solid HRM hiring practices helps you get the right employee and hire the best of the best.

Recruitment (getting qualified candidates) is an important step in hiring.

Know the job: Does the job include machine operation where you need someone with machine operating experience?

Or, does the job provide training prior to operation? If training is provided, you can look for someone you can train, and experience is a bonus. Does the job entail mixing and applying pesticides? If so, does the right candidate need specific qualifications? Or is the application of pesticides part of the job only if the right candidate comes along? If you know the job, it just makes sense that you’ll be able to recruit and ultimately hire the right people. Understanding the job is often an overlooked step.

Develop a message about the job vacancy: You need a message for your advertisements and for when you talk to people about the job. Develop a message that gets attention, shares critical job information, and reflects your operation. In a sea of organizations looking for good workers, make your message stand out. Consider these advertisement headlines: “Farm Labour” versus “Steady Employment and a Challenging Career Opportunity at Our Farm.” Which would you read?

Critical job information includes statements about what the employee must do and what success looks like. Important but not critical information includes necessary certifications and job location. If you’re willing to support employees getting those certifications, then say so. Location is important but can be outweighed by the right job. People will move for the right job.

Including wages and working conditions is optional. Eventually candidates will need to know this information, but at this point, generating interest is your goal.

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“ Using solid HRM hiring practices helps you get the right employee and hire the best of the best.”

Dawn Hillrud

If there is a less appealing aspect of the job, share it later in the selection process and not in the initial message. Focus on the positive.

Most importantly, your message needs to be true and reflect your operations. Misrepresenting the job or organization might get you employees in the short term, but employees will eventually leave if the job is not what they expected.

Get the message out: Consider how you might reach people who are qualified and have the ability to be successful in the job.

If the labour market is tight, spread your vacancy message broadly.

There are a number of options to expose your job vacancy message.

1. Electronic job boards (EJB), 2. Networking with and talking to people, 3. Traditional newspaper advertisements, and, 4. Support groups for diversity labour sources.

EJBs are the happening place to post jobs vacancies. EJBs are many job seekers’ first and only career and job advertisement stop. Many allow job seekers to post their resumés, giving you an opportunity to approach them.

There are a number of free EJBs (www. saskjobs.ca in Saskatchewan, www.peijoblink. ca in P.E.I., etc.). A free national job posting board is www.jobbank.gc.ca. Many online classifieds such as www.kijiji.ca are also free.

There are job posting sites specifically for agriculture (www.AgCareers.com or www.agrilabourpool.com). These specific sites may have a fee for posting advertisements.

Talking to others about the job vacancy can be a very effective way to spread the word. Network with people with jobs

similar to your job vacancy. Ask if they know of someone who has the ability to do this job. Talk to your current and past employees. Personal referrals are still an effective way to source possible candidates. When you’re discussing the job with others, use the message you developed. Remember you’re recruiting for the job. Think of it as marketing the job and your organization.

There is traditional newspaper advertising, but dollar for dollar this medium may not net you the same results as EJBs. Advertise the job vacancy at post-secondary schools and employment agencies for diversity groups. Both of these places can be an excellent place to find workers.

To hire the best employee, you want to pick from the best candidates. This doesn’t mean you need a lot of candidates, but you need qualified candidates — the ones a good recruitment strategy will find.

Selection is gathering information about candidates and evaluating them on common pre-set criteria. This is sound HRM practice. Think of it in terms of evaluating other farm/ranch inputs like fertilizer. When you test two types of fertilizers, outcomes are measured on the same criteria. OK — I know evaluating yield is much simpler than evaluating a candidate’s ability to perform work, but the principles are similar. So let’s look at some selection activities that will help gather candidate information.

Candidates select: The people hearing or reading your job vacancy message execute the first selection activity; they decide if they’re interested and a likely match for

www.canadiancattlemen.ca

management

the job. A message that stands out increases the numbers of readers and listeners.

You select: Hopefully your vacancy message did its job, and you got good qualified candidates. Now you’re selecting candidates. Use pre-set criteria for reviewing resumés. If the application is verbal, ask the candidate questions related to the pre-set criteria. Be critical. Don’t be afraid to touch base with the candidate to get more information. Some people are great candidates but have poor resumés.

Interviewing is the most common selection activity:

different than your criteria. In the case of the stuck tractor, the reference may tell you the candidate was “good” because the candidate asked for a solution. For you, “good” is a candidate who finds his own solution.

To achieve the goal of hiring the best, use a process that helps you select the best.

Using pre-set common criteria based on the job and effective selection activities is HRM by design.

This is the third and final article in this

series on human resource management in cattle operations. c Dawn Hillrud is a partner in Knibbs/associates Sourcing People and an associate of Knibbs/ associates HR Consulting that provide HR and employee recruitment services to agricultural organizations. Co-author Leah Knibbs is the owner of Knibbs/associates HR Consulting and a partner in Knibbs/associates Sourcing People.

For more information contact Dawn at dawn@ sourcingpeople.ca or 306-442-7460.

In an interview do not:

1. Ask illegal questions (questions related to Human Rights-protected areas such as religion, marital status, etc.).

2. Talk more than the candidate. You talk to share information about the job and operation, answer the candidate’s questions, and ask the candidate questions; but your main role is to listen and gather critical information about the candidate.

3. Ask leading questions or lead the candidate to a specific answer. Be quiet. If you’re silent, the candidate has time to think and provide you with a true answer, not one you’ve led them into giving.

Questions about the weather?

In an interview do:

1. Have questions prepared ahead of time.

These questions will be based on your common pre-set criteria.

2. Have enough time to have a thorough interview. Know as much about the candidate as you can before you hire.

3. Ask questions about soft skills. People often get hired for their technical skills but terminated for their soft skills (communication, work ethic, etc.). The soft skills can be part of your evaluation criteria.

4. Ask questions that will show you how the person behaved or performed in certain situations. Don’t ask what someone would do; ask what they have done. You’ll get a much better understanding of the candidate’s behaviour asking, “What did you do the last time you got the tractor stuck?” rather than, “What would you do if you got the tractor stuck?” And keep in mind, the best predictor of future behaviour is past behaviour.

Reference checks: For reference checks, follow the interview guidelines. All the dos and don’ts apply. Don’t ask for a reference’s opinion. When a reference gives an opinion on a candidate, they’re doing the evaluation based on their criteria, which is likely www.canadiancattlemen.ca

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 straigh t f ro m t h e h i p

By Brenda Schoepp

Building Blocks for Success

T

he competitive nature of food processing in Canada results in a constant set of challenges. When the Canadian Agri-Food Policy Institute (CAPI) set out to find out why we had failures and a $6.8-billion food-processing trade deficit through 13 case studies, they also discovered the ingredients for success.

Food manufacturing in Canada is the leading sector in terms of employment and GDP, greater than auto manufacturing.

And as much as Canadian companies are attracted to our corporate system of taxation, they still often expand in the United States. The companies that stay in Canada and continue to grow with a global presence share a specific set of attributes.

Leadership trumps all when it comes to survival in a tough economic and highly competitive environment and a mission statement does not cut the cloth. The case studies found that great companies had a clear purpose that was very focused.

The CEO and other leaders took responsibility for breathing life into the purpose of the company. In one case study, Premium Brands, which owns 29 different food companies, keeps their competitive edge by fostering entrepreneurial spirit across the board. They avoid the big ship strategy of commoditization. They list the leadership traits of the CEO as being entrepreneurial, accountable, and knowledgeable on what they want the company to be and not to be and as having strong financial and industry expertise. That person is to be confident in their abilities, detest bureaucracy and expect the same accountability from all employees. George Paleologou is this man and his 3,600 employees are clear that the vision of the company allows them flexibility and creativity. The Premium Brands recipe for success is a very clear purpose and a match between the vision and the target.

Multiple points of differentiation grounded successful food manufacturers based in Canada to stay competitive and hard to copy. In Ontario, Ferrero makes fresh chocolates in a method that is tricky to reproduce. In Quebec Bonduelle Americas plans and forecasts vegetable supply so its processing plants can operate at high levels of efficiency. Bonduelle achieves this by working with growers to improve agronomic practices that compliment its mandate to “feed people vegetables as part of a healthier diet in order to create a healthier world.” Just like a meat packing plant, vegetable-packing plants need to operate at full capacity. The catch is in ensuring supply, something meat packers currently struggle with, and in keeping focused on their point of differentiation which is “vegetables first, technology second.” They don’t feel edged out by the McCain’s of the world because they don’t have the same mandate.

A competitive advantage can be a technology or marketing strategy but most successful companies had deep relationships with all parties, particularly growers. You may not know that PepsiCo processes Quaker Oats for your breakfast and it may not be important to you. But the fact that all the oats for Quaker is sourced from Eastern and Western Canada for both

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the Canadian and U.S. processing plants is important. PepsiCo sees great relationships as part of its success strategy.

Enabling policy is the quilt that wraps the culture to keep it safe and warm and to attract new entrants into food manufacturing. In Canada, we have the commodity on the farm and that makes our country somewhat attractive for processing companies but it has not proven to be enough. The stability and support of government policy that is enabling with all three levels of government working together is needed to support the stay-ability of manufacturing companies so they expand in Canada rather than outside of it. This working environment recognizes that we grow and process on a global platform but must do so in a way that builds communities.

Morrison Lamothe Inc. (MLI) is an old Canadian frozen food-processing company founded in 1933. It has had its struggles but maintains a strong family atmosphere among its employees. Management also knows from experience that sometimes a relationship and a willingness to reinvent oneself results in unprecedented success. MLI reflects on the value of relationships and taking calculated risks. “One problem became an opportunity in late 2004 as the Canada-U.S. border closed to some beef products and MLI was approached by Nestle and asked how quickly could they manufacture Nestle Canada’s beef-based frozen entrees. The team managed to get 13 new SKUs manufactured in seven weeks, no small feat. MLI delivered, Nestle became their biggest branded customer in both countries, and a deeper relationship was established.” The result of this relationship was that later Nestle offered MLI the second-largest coffee-roasting plant in Canada and thus the very lucrative Coffee Club, a “white labelling” company was created. Today, whenever you use a coffee pod regardless of the brand, it has been processed in Canada through MLI. There are so many lessons for our businesses to be learned from food manufacturers who are international in scope. They too strive for success in a highly volatile, stressful and constantly changing environment. And despite the technical hurdles, such as a swing in the weather or the dollar, they have shared their building blocks with CAPI (www.capi-icpa.ca).

Great companies operating in Canada were built by committed and accountable leadership that communicates the purpose of the company. These companies differentiated themselves in a way that is hard to replicate and in step with consumer preference. They lobby for enabling policy so investors drive the bus and government supports prosperity at all levels. And most important of all they remind us to build and maintain a company on relationships — the cornerstone of success. c Brenda Schoepp is a motivating speaker and mentor who works with young entrepreneurs across Canada around the world. She can be contacted through her website www.brendaschoepp.com. All rights reserved. Brenda Schoepp 2014

www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

Ranch-fresh thinking for managing animal health Tips for the busy spring and summer period

When you grow up on a busy cow-calf operation like Coy Schellenberg did, you learn that attention to detail matters, especially when things get hectic.

One of the busiest times of year for producers is heading into spring and early summer. Calving season, often with round-the-clock herd checks. Yearlings and replacements moving to grass.

All of that, Schellenberg knows, means animal health processes need to be managed particularly closely. He has a unique perspective.

He is a producer himself and also provincial co-ordinator for the Verified Beef Production (VBP) program, Canada’s beef on-farm food safety program.

The recommended approach and the rationale for those recommendations are clear to Schellenberg. But he also knows the mental barriers that can tempt producers to take shortcuts.

His advice? Keep it simple.

Know the core issues. To him the key parts of the animal health Standard Operating Procedure under VBP are threefold. Health product withdrawal times, to make sure there are no chemical residues in meat. Managing needle use to prevent physical contamination of meat. And keeping proper records, to prove what you’re doing.

Beat the “busy” excuse. It’s hectic managing calving and processing cattle onto grass. Slow down during processing to ensure products are administered correctly and take time to write down what you’ve done.

Value record-keeping. Schellenberg believes most cattlemen are already doing things well enough to pass a VBP audit. That, he believes, is kudos to the Canadian Cattlemen’s Association for the effort put into building the VBP program to help demonstrate responsible production.

The difference is today not all producers value records enough to keep them up to date. “It’s the most overlooked area in animal health management,” he says. “They may feel they have a good memory and can recall which animals were treated with what. But at the end of the day it’s a busy world. To reduce error and to protect themselves and their industry, they need to clearly know what is going on.”

Manage needles. It may be tempting when you are busy, but don’t

Saskatchewan VBP provincial co-ordinator Coy Schellenberg ranches near Beechy, Sask.

bend a needle back. It is likely to break where it was bent. And use detectable needles.

Use your vet. There’s real added value in having a veterinarian come out to your operation, says Schellenberg. There are times like preg checking where they will be at your operation anyway. But building a herd health program just makes sense, to have a clear vaccination program, for example, or improve reproduction rates.

There is no denying this is a cash expense, he says. But once you develop a reputation with your vet so they know your operation and your objectives, it creates efficiency and effectiveness. It can be so convenient to get them on the phone, and they are comfortable enough to give you advice without having to come out to do it.

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 THE IN DUST RY

NewsRoundup calving Triplets, again

Lightning struck again last month with yet another rare delivery of healthy female triplets at the farm of Samantha Radowits in Drayton Valley, Alta. The chance of having healthy female triplets is reported to be eight million to one yet Canada has seen two sets this year that we know of, making 2014 a banner year.

research

U of S feedlot gets the green light

Fundraising for the University of Saskatchewan’s new $14-million, 2,000-head beef cattle research facility south of Clavet kicked off in earnest last month when the university board of governors officially approved the project following a $1-million donation by the Saskatchewan Cattlemen’s Association (SCA).

“It’s extremely important that the cattlemen’s association is demonstrating so strongly it is behind us on this project,” said Andrew Van Kessel, head of the department of animal and poultry science.

The new beef facility will replace the current 700-head feedlot which no longer reflects modern-day feedlot conditions, nor meets Canadian Council on Animal Care (CCAC) standards, largely due to poor drainage in the pens.

“We need to ensure our health and welfare practices are acceptable to the consuming public,” says Van Kessel.

The SCA donation will allow the project team to leverage other sources of funding from government and related industries with a stake in beef production research.

Plans for the new facility include a segregated pavilion where researchers can demonstrate the latest animal-handling and management approaches. A metabolic unit will house animals for detailed physiology and metabolism studies and “from there, we can take what we learn into the research feedlot and scale it up.”

The facility itself features three different-size pens designed to answer different research questions. Nutrition pens of up to 15 animals each will be used to compare

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different feeding strategies, feed ingredients and additives; genetic pens holding up to 30 animals will allow for nutrition studies aimed at getting the best performance from animals with different genetic traits; and health resource pens up to 200 animals will mimic commercial feedlot conditions.

One unique aspect is found in the design of certain pens that allows for the collection and monitoring of surface, groundwater and run-off to analyze the environmental impacts of intensive cattle-feeding operations and test mitigation strategies for best management practices.

Disease

Manitoba’s TB battle gets some backing

Usually when cattle producers in the Riding Mountain Eradication Area (RMEA) of Manitoba hear from government it’s in the form of an order to jump through more hoops to protect the rest of the country from bovine TB.

Last month, however, their fight against TB got a shot in the arm with the injection of $297,000 over five years in Growing Forward 2 funding from Agriculture and Agri-Food Canada and $150,000 from the Manitoba government. Both projects are being co-ordinated by the Manitoba Beef Producers with the aim of finding ways to reduce the testing requirements for live animals in this beleaguered area.

“Manitoba’s status as a TB-free province comes at a significant cost to a relatively small group of producers, but allows the entire industry to access valuable marketing opportunities in other countries,” said Manitoba Agriculture Minister Ron Kostyshyn in announcing the province’s project. “We will help move the industry to a new approach to improve accuracy and reduce costs to beef producers.”

Bovine TB is a reportable disease in Canada and its prevalence in livestock remains extremely low. The Canadian Food InspecContinued on page 44

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Wring out more

efficiency To feed a hungry world, you need to grow more each year while caring for and protecting your land. And to sustain your farming operation, you need to grow these crops more efficiently. But where do you go to find out the latest information on sustainable practices that increase yields?

The 6th World Congress on Conservation Agriculture in Winnipeg, Manitoba will present new ideas on how you can grow more, more efficiently. Innovative growers, cutting edge researchers, and technology leaders will share their success stories and tips. Be there June 22-25, 2014 for practical solutions to the challenges facing today’s agriculture.

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tion Agency runs a surveillance system in federally inspected abattoirs across the country. The most recent detected case in Canada was in a herd in British Columbia in 2011.

Livestock herds in Manitoba’s Riding Mountain Eeradication Area (RMEA), however, are considered to be at higher risk because of the presence of the disease in wild deer and elk in the area which is believed to be the reservoir for TB in the park.

The RMEA and the rest of Manitoba have been able to maintain a “bovine TBfree” status since 2006 and the disease hasn’t been detected in Manitoba livestock since 2008. The burden for that success has fallen mainly on the 400 or so producers in the RMEA who for more than 12 years now are regularly required to gather and test their entire herds.

PRESENTS…

The federal project will focus on developing best management practices and creating risk assessment models to test the validity of monitoring for this disease through tracebacks from packing plants versus live animal testing. Under the provincial project, producers in the RMEA will receive support to conduct risk assessments, ensure all necessary information about their livestock is available to an existing traceability system and follow up on any testing results related to their herd.

Once all the data is provided the system will link information from animal ear tags to the farm premises identification and throughout the beef-processing chain. If the presence of bovine TB is found at a slaughterhouse or abattoir it can then be traced back to an individual farm.

The hope is a strengthened traceability system may also help reduce the number of on-farm bovine TB tests required in the future.

This may all be for not if producers within the RMEA refuse to register for premises ID. The Manitoba Co-operator recently reported on a handful of ranchers in the area so dis-

trustful of the Canadian Food Inspection Agency surveillance program that they refused to apply for premises ID which is a requirement to enrol on this voluntary program. Some 170 producers in the RMEA currently have premises ID on file.

The details for both programs were still being worked out with the Manitoba Beef Producers (MBP) at press time.

marketing

New marketing app available

Canfax, the market analysis division of the Canadian Cattlemen’s Association recently released a new market data app for Canadian cattle producers. CFX Pro is a free app adapted for use by cow-calf producers, backgrounders and finishing feedlots.

It offers up-to-date reports on future prices, the Canadian dollar, and insurance coverage levels from the Western Livestock Insurance Program. It also contains breakeven calculators for working out quick break-evens on calves being bought for backgrounding or finishing.

A third feature projects prices on calves or feeders for the current market or several

A FREE DEAL FOR CUSTOM FEEDLOT OPERATORS Make sure you take advantage of your free listing in the annual National Custom feedlot Guide in the September issue of Canadian Cattlemen — The Beef Magazine.

All you have to do is fill in the blanks below and mail, Fax or Email it back to us before August 1, 2014. We’ll do the rest, at no charge to you.

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www.canadiancattlemen.ca

NEWS ROUN DUP

months out based on Canfax historical data, feedlot cost of production benchmarks and live future and cash prices.

Some costs such as yardage, vet and med, death loss, etc. can be changed to make the app more representative of an operation. Barley prices can be updated to reflect local conditions.

CFX Pro is available on iPhone and BlackBerry platforms and can be downloaded from the ITunes app store or www. canfax.ca.

policy

COOL update

May 19 is the next major step in the country-of-origin labelling (COOL) two-step

that has been going on between the USDA and the North American meat and cattle organizations for a few years now.

Even by COOL standards this one is a head-scratcher.

On April 4 the U.S. Court of Appeals for the District of Columbia circuit surprisingly decided to vacate a March 28 ruling by a panel of its judges that rejected the North American meat and livestock industry’s plea to halt U.S. mandatory country-of-origin labelling (COOL) and said it would rehear the case en banc — that is, with its full court of district judges — on May 19.

The issue to be considered is whether, under the U.S. Constitution’s First Amendment (freedom of speech), companies can

be compelled to provide mandatory disclosure of purely factual and uncontroversial information, such as COOL demands on mandatory meat labels, if the government requires it for reasons “other than preventing deception.”

The full court will consider whether the case law to be applied in this instance should be a 1980 case, Central Hudson Gas and Electric Corp. vs. Public Service Commission, or a 1985 case, Zauderer vs.

Office of Disciplinary Counsel.

In Zauderer, the U.S. Supreme Court ruled that mandatory disclosure rules would not violate First Amendment rights if the rules “are reasonably related to the Continued on page 46

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News Roundup Continued from page 45

state’s interest in preventing deception of consumers.”

The AMI and co-plaintiffs argued that the COOL rule, as revised last May, violates the U.S. Constitution “by compelling speech in the form of costly and detailed labels on meat products that do not directly advance a government interest.”

If this court upholds the earlier ruling it will likely close the door to a legal solution within the U.S. The political solution evaporated earlier in the year when the Congress refused to amend the COOL legislation in the new U.S. Farm Bill.

That puts the industry back with all its hopes riding on a favourable decision from World Trade Organization (WTO) Compliance Panel on COOL The panel is comprised of the same three panellists whose finding that COOL discriminates against Canadian live cattle and hogs was affirmed by the WTO Appellate Body in 2012.

The CCA says the panel is expected to make its confidential report to governments in June and then publish a public report probably a month later.

Even if the panel sides with Canada’s position this only marks another step in the process. However it goes it is likely to be followed by an appeal. If the Canadian Government is successful it would then face the unpalatable choice of imposing retaliatory tariffs on U.S. imports sometime in the first half of 2015, just a few months before the next federal election is called.

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Insurance

Praise for price insurance

If the signup for the Western Livestock Price Insurance Program (WLPIP) is going as well in other provinces as it is in Alberta the program is off to a roaring start.

A late-April press release from Alberta Agriculture and Rural Development reports a growing demand for price insurance in Alberta as cattle producers scramble to lock in current high prices.

“They don’t want to risk losing that money if prices fall for some reason,” says Brenda Hagen with Agriculture Financial Services Corporation (AFSC), the provincial Crown corporation that has administered livestock price insurance since it began in Alberta five years ago.

“Participation in cattle price insurance has tripled in Alberta over the last year because it gives producers an Alberta floor price that locks in up to 95 per cent of the future forecasted price on their cattle. And it doesn’t put a ceiling on the price they can sell their cattle for if markets keep climbing,” says Hagen.

As the WLPIP rolls out across the region she says there has been no change to the program in Alberta other than a new logo and new website at www.wlpip.ca.

“We’re adding settlement indexes and coverage levels for the other provinces, but coverage and settlement prices in Alberta will still be based on the Alberta cattle market.

Brian Perillat, senior market analyst with Canfax, says the timing was right for the launch. “Cattle prices have jumped about 20 per cent over the last four months — and those higher prices bring higher risk, especially for feedlots and backgrounders that buy high-priced calves and feeder cattle to place on feed or pasture. Those produc-

ers have more money on the table than ever before. And with the increased market volatility that often comes with high prices, producers could easily lose a lot more money a lot faster if they’re not using tools like price insurance in today’s markets.”

While there’s every indication today’s strong prices will continue through 2014 you can’t always predict the unexpected, such as sudden shift in the Canadian dollar, or drought severe enough to shrink the U.S. corn crop.

“There’s too much at stake not to protect the high prices we’re seeing today with price insurance. That’s why we actively promote WLPIP to our members,” says Reg Schmidt, with the Feeder Associations of Alberta (FAA). In addition to feeder loan guarantees the FAA finances WLPIP premiums to protect those loans.

About 40 per cent of FAA members are enrolled on the WLPIP and Schmidt anticipates that number could double.

“It’s bankable so they can take it to their lender to access credit more easily. And you don’t have to look hard for examples of how WLPIP has helped cattle producers manage their price risk,” he says pointing to the XL Foods plant closure in Brooks almost two years ago. “Feeder cattle fell nearly $20 per 100 pounds at that time, and producers who had price insurance were getting payouts of nearly $200 per head.

Wildlife

Wolves under the microscope

Last month two provinces refined the rules dealing with wolves.

Saskatchewan is preparing amendContinued on page 48

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ments to the province’s Wildlife Regulations to designate the wolf as a big game species, which will allow hunters to target problem wolves in areas under predator pressure.

Big game management licences are a long-established tool that has been used to address overpopulation of ungulates (generally, mammals with hooves, such as deer or elk), wildlife disease or damage to crops in specific areas.

Adding wolves to the definition of a big game animal will enable the ministry to test the effectiveness of using management licences to help control wolves in localized areas with significant livestock predation.

The planned amendment doesn’t create a general wolf-hunting season but focuses on specific areas which meet established criteria and only after tra-

ditional control methods have failed to reduce livestock losses.

The province has identified an area around Weekes, about 100 km southeast of Tisdale, as the initial area for a pilot hunting project, based on a high number of livestock losses documented in this area.

Trapping has been the traditional means of controlling wolf populations, the province noted, but in some areas, trappers have not been able to consistently harvest wolves, which can lead to larger populations and more attacks on livestock.

Trappers will still be able to trap wolves under this amendment, as it will give wolf a “dual designation” as a big game animal and fur bearer, similar to black bears.

Hunters who harvest a wolf using a big game licence will also be able to sell the pelt under their hunting licence.

Another amendment allows landowners to kill ravens without requiring a permit in areas where the birds are predators.

B.C. wolf management plan

The focus of B.C.’s new wolf management plan released last month by the Ministry of Forests, Lands and Natural Resource

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We’d appreciate it if you could tell us a little about yourself. It makes it easier for us to keep your main interests in focus  I’m ranching or farming Enterprise Total beef cattle Yearlings on feed/pasture Registered cows Fed cattle (sold yearly) Commercial cows Horses Calves on feed/pasture Other livestock

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 In agribusiness (bank, elevator, ag supplies, etc.)  Other (please specify) ____________________ My approximate age is:  a) Under 35  b) 36 to 44  d) 55 to 64  e) 65 or over

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 c) 45 to 54

C a t t l e m e n · M ay 2 0 1 4

don’t like. There’s also some space for you to tell us what you would like to see in future issues.

ClIp And enClose your mAIlIng lABel. each month, we will draw one name from all the surveys sent in and send that person a Cattlemen cap. It could be you!

What do you think of: On a scale of 1 to 5, how do you and your family like these features?

5 – I always watch for it; let’s see more of it 4 – I regularly read it and like it 3 – I usually read it 2 – There are things I’d rather read 1 – I don’t want it; get rid of it Regular Columns 5 4 3

Regular Columns News Roundup Purely Purebred The Markets

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Market Talk Sales and Events

2 1 Nutrition Comment Research Special features 5 4 3 2 1 Newsmakers Letters Calving Issue (Jan.) CCA Reports Custom Feedlot Guide (Sep.) Prime Cuts Stock Buyers’ Guide (Aug.) Straight From The Hip Animal Health Special (Sep.) Holistic Ranching Beef Watch (May & Nov.) What would you like to see? __________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ How much time do you and your family spend reading 1666 Dublin Avenue Canadian Cattlemen?  Under 2 hours  Over 2 hours Winnipeg, Man. R3H 0H1

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N EWS ROUNDUP

Operations is on conservation and management to maintain selfsustaining populations of the predator.

The research indicates wolf populations are likely stable or increasing throughout the province. As a result wolves are not an at-risk species. The current population is estimated at 8,500, up slightly from the 8,100 estimated in 1991.

The B.C. Cattlemen’s Association was pleased to see the government commit to addressing livestock predation through the development of implementation plans that require input from ranchers and other stakeholders. Ranchers are also encouraged that the government is taking steps to manage wolf populations and assist them in protecting their livestock.

The last wolf management plan dates back to 1979.

Specified season lengths and bag limits will provide sustainable hunting and trapping levels. In areas where livestock or wildlife populations are threatened by wolves the plan commits the province to helping stakeholders, ranchers and First Nations manage the impacts of expanding wolf populations.

The complete plan can be found at www.env.gov.bc.ca/fw/wildlife/management-issues/docs/grey_wolf_management_plan.pdf.

HEALTH

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BEEF 2014: INTERNATIONAL LIVESTOCK CONGRESS

Beef 2014: International Livestock Conference This year’s conference will focus on the opportunities of marketing the whole carcass.

With the trends that are taking shape today, there are many opportunities for the future.

Hear an update on the economy – local and globally, the market opportunities of the whole carcass locally and globally – and what you can do to enhance this opportunity and why it is important to you.

Register at www.ilccalgary.com www.canadiancattlemen.ca

ILC Beef 2014: Wednesday July 09, 2014 Deerfoot Inn & Casino, 1000, 11500-35 Street SE, Calgary, Alberta

C A T T L E M E N · M AY 2 0 1 4

49

Make Your Decisions Profitable

Limousin Bank on the Carcass Breed

Canadian Limousin assoCiation

#13, 4101 – 19th Street N.E., Calgary, AB T2E 7C4 Phone: (403) 253-7309 Web site: www.limousin.com

News Roundup Continued from page 49

SHORTHOR NS

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The company claims the vaccine offers the longest demonstrated protection of any combination respiratory vaccine on the market, at least 279 days against infectious bovine rhinotracheitis (IBR) virus and bovine viral diarrhea (BVD) virus Types 1 and 2 that cause bovine respiratory disease (BRD). It also helps protect cattle from respiratory disease caused by bovine respiratory syncytial virus (BRSV); parainfluenza 3 (PI3) virus; and M. haemolytica.

It is the only combination respiratory vaccine labelled to prevent IBR respiratory disease, BVD viremia and aid in the prevention of M. haemolytica, the most common pathogen involved in BRD. It comes in 10- or 50-dose vials and can be purchased through your veterinarian. c

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C A T T L E M E N · M AY 2 0 1 4

51

 NEWS AB OUT YOU

By Deb Wilson

PurelyPurebred

Suggestions are always welcome. My phone number is 403-325-1695 Email: deb.wilson@ fbcpublishing.com

In making the presentation CWA president, Reed Andrew said, “Agribition was built by people who had great vision. Volunteers like George and Gordon laid the groundwork for one of Canada’s greatest shows.” n Canadian Beef Breeds Council is advertising to fill a new position tentatively titled “Director of Scientific and Industry Advancement.” If you would like to view the posting or know someone who may be interested you can learn more by contacting the council at 403-730-0350 or email: info@canadianbeefbreeds.com.

Corbin Blair and Aleesa Morrison working on halter breaking.

n Here is a cute picture of some future livestock enthusiasts working on their halterbreaking techniques. n Check out the newly launched Beef Advocacy Program. This is a great program that will help even the most seasoned cattle producer learn a few things. If you would like to learn more about the program go to www.beefadvocacy.ca or email info@beefadvocacy.ca. n The Canadian Limousin Association (CLA) celebrates its 45th anniversary in 2014. To acknowledge this milestone, the CLA is inviting breeders to share their Limousin Pride by submitting photos and stories of their breed promotions, past or present.

All materials should be emailed to aburgess@limousin.com. The CLA will feature the submissions on social media and in the Limousin Voice. It welcomes individual, club and provincial association material. n New Holland will be the title sponsor of the 2014 Young Canadian Simmental Association National Classic. The Young Canadian Simmental Association (YCSA) focuses on education, teamwork and hands-on experience for young beef producers across Canada. Events are held throughout the year for youth up to the age of 25. The YCSA National Classic will take place in conjunction with the 2014 Canadian Simmental Association annual meet-

52

C a t t l e m e n · m ay 2 0 1 4

ing July 25-27, Elkhorn Resort in Riding Mountain National Park in Manitoba. n Canadian Western Agribition (CWA) has announced the 2014 inductees to the CWA Hall of Fame. This prestigious award recognizes deserving individuals and groups for their outstanding contributions to the success of CWA. This year, George Harlton and Gordon Stephenson have been selected as the 2013 CWA Hall of Fame Inductees.

Harlton was a founding director of CWA, serving on the board for 16 years. He also exhibited for 20 consecutive shows including the very first CWA. Harlton’s passion for livestock and commitment to the industry and his community had a strong influence on the generations that followed him. He lived a life of service and dedication to excellence that left an indelible mark on the livestock industry in Saskatchewan.

Stephenson was general manager of CWA from 1977-82. During his five years as GM he was instrumental in establishing a strong volunteer base and board of director structure.

After leaving his position as general manager, Stephenson served on the CWA board from 1982-86, and as president in 1991 and 1992.

He was chairman of the Rodeo Committee for five years and was instrumental in developing the rodeo into a first-class production.

In 2006, Stephenson was presented the Jim Lewthwaite Award for his outstanding contribution to promoting CWA internationally.

n Michael Latimer, along with a few members of Canadian Beef Breeds Council were invited to attend (in person or via conference call) a recent meeting between the Canadian Livestock Genetics Association (CLGA) and the staff of the Canadian Food Inspection Agency (CFIA) in Ottawa. This was a two-day technical meeting focusing on export issues for cattle, eggs, sheep, goats, embryos and semen such as disease testing requirements and logistical concerns. Michael Hall the CLGA executive director arranged the meeting as a forum for an exchange of information between the livestock industry and the CFIA. n Canadian Beef Breeds Council was recently approved for $50,000 in funding from the Saskatchewan Ministry of Agriculture to compliment the funds received from the Alberta Livestock and Meat Agency earlier this year. n Reed Andrew of Regina, Sask., was reelected president of Canadian Western Agribition (CWA) during its annual general meeting in early April. Andrew has been a volunteer at CWA for 36 years. He is a longtime commercial cattle exhibitor and has served for 13 years as a board director and chairing numerous committees.

Sales results for more details see www.canadiancattlemen.com

New Trend Salers Bull Sale March 20, 2014 Olds, Alta.

37 Yearling bulls, av. $5,291 c

www.canadiancattlemen.ca

PURELY PUREBRED

Members of CWA elected the following directors to serve a two-year term on the volunteer board: Elmer Eashappie of Regina, Sask.; Doug Fee of De Winton, Alta.; Kim Hextall of Grenfell, Sask.; Chris Lees of Arcola, Sask.; Carla Schmitt of Saskatoon, Sask. and Levi Wood of Regina, Sask.  Canada’s first training program for beef producers focused on producing high-quality beef from breeding through processing, Carcass 101, will be held June 18-19 in Olds, Alta. The course is hosted by the Canadian Angus Association (CAA) and Certified Angus Beef (CAB). “We are thrilled to offer this innovative course to Canadian cattle producers,” says CAA CEO Rob Smith.

“It is the first event of its kind in Canada, offering cattle producers the chance to tie together all of the breed development tools and genomic information that they have access to, giving them a unique opportunity to evaluate and really think about the quality of the carcasses that they are creating.”

The agenda for the two-day course includes live cattle evaluation, identification of the parts and value of the beef cattle carcass,

global differences in carcass utilization, a cutting demonstration and utilization of carcass data as well as discussions of genetics, genomic testing and opportunities for market growth. Registration details can be found at www.cdnangus.ca.  The National Shorthorn Junior Association will hold its annual National Show in Manitoba this year, in conjunction with the Manitoba Youth Beef Roundup 2014.

The 7th annual roundup is set for August 1-3, 2014, at the Beautiful Plains Complex in Neepawa, Man. It is open to anyone up to the age of 25 as of January 1, 2014 with an interest in any breed of purebred or commercial cattle. The goal is to educate, encourage, stimulate, unite and prepare young entrepreneurs in the business of the beef industry through competitions and events to match all interests and skill levels. The events include team grooming, individual and team judging, team marketing, showmanship, marketing, sales talks, art, photography, scrapbooking and cattle classes in all breeds. Entry deadline is July 1.

For more information contact Lois McRae

204-728-3058, or visit the website www. mbangus.ca, and Facebook page for Manitoba Youth Beef Roundup.  The Canadian Junior Hereford Association will be hosting its national junior show, “Bonanza” from July 29 to August 2, 2014 in Lindsay, Ont. It is the longestrunning junior association and the largest junior breed show in Canada. Anyone can participate. There are competitions in individual and team judging, team marketing, art, literature, photo as well as the cattle show. Hereford juniors or any interested youth are invited to check out the information and scheduling at www. hereford.ca — click on Juniors.

In conjunction with the CJHA Bonanza, the Canadian Hereford Association will be hosting its annual general meeting Friday, August 1 at 7:30 p.m. at the Lindsay Fair Grounds. The CHA annual meeting will again be broadcast online. For more details to watch online, contact the CHA office at 403-275-2662.

Continued on page 54

You are invited to the 4th annual… thursdaY, June 19th hot topics in Cattle health and Welfare:

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2014 Pushing the Frontiers of Beef Cattle health

· Codes of practice for beef cattle – next steps · Calf management survey · Management of gastro-intestinal parasites

reproduction:

· Epigenetics and fetal programming · Trichomoniasis and campylobacteriosis · New estrus synchronization strategies

FridaY, June 20th nutrition and Growth:

· Beta-agonists · Ruminal acidosis in feedlot cattle · Mineral feeding

afternoon Workshops:

June 19-20 Deerfoot Inn & Casino, Calgary, Alberta

Visit our website for full details and registration:

1. Calves & Calving 2. Bovine Lameness

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vet.ucalgary.ca/beef Email: beef@ucalgary.ca 403.210.7309

www.canadiancattlemen.ca

UCVM Beef Cattle Conference

C A T T L E M E N · M AY 2 0 1 4

53

PU R E LY PU R E B R E D

Continued from page 53

bull Sale results pick of the crop bull sale — march 31 Listowel, ont.

Number of lots sold

Average price

Breed

2013

2014

2013

2014

11

11

Angus

$3,1 55

$3,609

5

6

Charolais

3,340

3,483

2

6

Composite

3,630

4,31 6

5

1

Limousin

3,037

3,900

8

10

Simmental

3,1 75

3, 305

31

34

TOTAL

3,240

3,640

n Peak Dot Ranch was awarded Saskatchewan Angus Breeder of the Year at its spring sale.

douglas bull test station sale — april 5 douglas, man.

Number of lots sold

Average price

Breed

2013

2014

37

28

2013

2014

Angus

$2,838

$3,496

2

1

Blond d’Aquitaine

2,000

3,600

1

—

Charolais

2,300

—

—

11

Composite

—

2,664

4

6

Limousin

2,400

2,800

—

1

Maine-Anjou

—

2,600

2

2

Salers

2,400

3,100

12

9

Shorthorn

2,425

3,089

10

13

Simmental

2,060

2,600

68

71

TOTAL

2,579

3,070

maritime beef testing society bull sale — april 5 nappan, n.s.

Number of lots sold

54

Average price

Breed

2013

2014

2013

2014

10

16

Black Angus

$3,580

$2,444

13

14

Charolais

3,384

3,207

1

—

Gelbvieh

1,600

—

5

7

Hereford

2,080

2,207

4

3

Hybrid Cross

2,225

2,183

7

4

Limousin

2,542

2,900

—

3

Red Angus

—

3,100

3

4

Salers

2,333

2,375

3

1

Shorthorn

2,000

1,800

21

17

Simmental

2,509

3,0 14

67

69

TOTAL

2,749

2,746

C a t t l e m e n · m ay 2 0 1 4

n The new Saskatchewan Beef Expo, April 5-6 at the Prairieland Park Ag Centre in Saskatoon was rated a huge success with more than 100 young people, aged nine to 21 taking part in competitions and educational sessions. Kirk Stierwalt, world-renowned cattle fitter, educator and judge sponsored by Early’s Farm & Garden Centre, spent Saturday sharing his secrets to success with the participants and their families. Representatives from Merck, Masterfeeds and the Western College of Veterinary Medicine were also on hand to offer their expertise on topics such as herd health, feed and animal care and proper use of implants. Show ring competitions on Sunday gave the participants a chance to demonstrate some of the skills they learned on Saturday and use the day as a warm-up for their club or regional 4-H show. Committee members and the Agriculture Department at Prairieland Park were overwhelmed with the number of registrants and are already planning to repeat the experience in 2015.

• Show results: Grand Champion Heifer — Maguire Blair, Drake.

Reserve Grand Champion Heifer — Serena Franc, Prince Albert.

Grand Champion Steer — Katie Serhienko, Maymont.

Reserve Grand Champion Steer — Cassidy Serhienko, Maymont.

Jr. Showmanship — Hillary Sauder, Hodgeville.

Intermediate Showmanship — Maguire Blair, Drake.

Sr. Showmanship — Shelby Evans, Kenaston.

• Team grooming: Junior winning team: Brandy Fettes, Gladmar; Kobe Kmita, Weyburn; Baxter Blair, McLean.

Intermediate winning team: Colton Dolman, Craik: Hayes Vermette, Outlook; Kennedi Libke, Dundurn.

Senior winning team: Maguire Blair, Drake; Nolan Blair, Drake. n I regret to say that the earlier results we posted for the Calgary Bull Sale were from 2013 not 2014. Here are the correct results: • Hereford Show: Grand Champion Bull — BP 945W SILVERADO 165Z exhibited by Bar Pipe Hereford Ranch, Okotoks, Alta. Reserve Grand Champion Bull — LBH 162W STERLING 95Z exhibited by Lilybrook Herefords Inc., Claresholm, Alta.

• Angus Show: Grand Champion Bull — LORENZ WANDERLEI 56A, exhibited by Lorenz Angus Farms, Markerville, Alta.Reserve Grand Champion Bull — REMITALL WEST SAO PAULO 7A, exhibited by Remitall West, Olds, Alta. c

www.canadiancattlemen.ca

 Market Su mma ry

By Debbie McMillin

TheMarkets Fed Cattle The fed-cattle cash market held near steady at record levels during the past four weeks. The current average fed-steer price in Alberta was $145.65/cwt, $31.79/ cwt higher than the same week in 2013.

Feedlots are up to date with their marketings, steer carcass weights are more than 30 pounds below year-ago levels and demand for the cattle is coming from both sides of the border. The fed basis has been wide since the start of 2014 and while it has narrowed the cash to futures basis -19/cwt compared to the five-year average of -9/cwt for the same period.

The April 1 Alberta and Saskatchewan cattle-on-feed report stands at 984,112 head, eight per cent more than last year but down from the March 1 total. This was a result of aggressive marketings into the strong fed market plus a drop in the number of cattle placed on feed. Placements were down nine per cent in March at 160,288 head. Looking to cash in on record prices domestic steer slaughter to date has been pushed up by five per cent to 377,641 head at press time and heifer slaughter has increased 15 per cent to 256,667 head. Heifer slaughter numbers increased significantly in the past few weeks. Tight fed supplies south of the border and a weaker dollar resulted in exports just slightly ahead of last year’s pace at 119,153 head.

Feeder Cattle Feeder cattle volumes were larger through the first quarter of the year as many producers eagerly sold into the strong market. Some cattle purchased in the fall were marketed earlier than scheduled as well to take advantage of the already good profit margin. In recent weeks feeder cattle supplies have started to decrease seasonally while demand remains strong pushing prices higher. Lightweight calves have continued to increase aggressively in past weeks as buyers spurred on by the warmer weather attempted to fill their grass cattle needs. Five hundred and fifty-weight steers in mid-April averaged $217.38/cwt www.canadiancattlemen.ca

which is $65/cwt or $358/head higher than the same time last year. Heavy feeder cattle chalked up steady increases as well, with 850-pound steers edging over $172/ cwt which puts them $51/cwt or $434/ head ahead of a year ago. Although feeder cattle prices in Canada have been very strong through the first four months of 2014 the basis continues to disappoint resulting in the Canadian feeder market trading significantly under the U.S. since the start of the year. While we have seen great prices it’s hard not to overlook the opportunity lost through the basis. The current 850-pound steer basis is -25.50/ cwt compared to the latest five-year average of -15/cwt. This wide basis plus the lower Canadian dollar and tight supplies has resulted in a steady stream of cattle moving to the U.S., 144,812 head since the start of the year which is 62 per cent more than last year at the same time.

Non-Fed Cattle Non-fed cattle prices continue to outpace expectations and break previous records.

D1,2 cow prices reached an average high $105.42/cwt the first week of April. Since then prices have slipped back slightly to average $103.88/cwt in mid-April which was a 30 per cent improvement or $24/ cwt higher than the same week in 2013.

Smaller available cow numbers will keep U.S. buyers in the Canadian market.

The COOL rules do not apply to grinding meats, however D1,2 cows still have seen a wider basis than historical trends would have suggested. Nonetheless the number of cows exported for slaughter to date in 2014 is steady with last year at 86,648 head. Domestic cow slaughter is three per cent lower with a total kill to date of 138,602 head. Butcher bull prices are also higher with a mid-April average of $106.56/cwt. Bull exports are up 12 per cent at 18,916 head while domestic slaughter is up 17 per cent at 859 head. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets 

 DEB ’S OUTLOOK Fed Cattle The feedlot industry is very current meaning it’s up to date with marketings. In fact cattle have been pulled ahead as much as possible.

This position always gives leverage to the sellers and should limit the seasonal downside expected over the next couple months. The next few weeks will see premiums offered on longer fed yearlings and more calves in the mix.

Lighter numbers of fed cattle are expected to trade throughout the summer on the cash market as many cattle have already been forward contracted to the packing plants. At the consumer level demand is strong this time of year and supplies of both beef and pork are tight relative to other years. This should help move product at the retail level. Expect a seasonal decrease heading into the summer, however, fed prices should be well supported by the limited supplies and good demand from both local and U.S. buyers.

Feeder Cattle Many producers have started to weed through heifers making their final cut for breeding which should increase the number of heifers available in the mix. Nevertheless the feeder supply is expected to be lighter moving forward right when buyers are still looking to replace bunk cattle and put together packages to go to grass.

Exports should slow with the smaller numbers available however, demand from U.S. buyers due to the wider basis and softer Canadian dollar will continue to support this market. Looking ahead the main indicators on the direction of feeder cattle prices will be the progress of corn and barley seeding and crop conditions.

Favourable weather and good crop reports will be indications of a strong feeder market moving forward. Another positive for the feeder market is the recent profit margins in the feeding sector as well as some of the profitable risk management positions that have been locked in for the coming months.

Non-Fed Cattle Demand for grilling season is just getting started.

Hamburger and trim meats are at record-high prices in both the U.S. and Canada. In addition supplies will start to tighten up as most cows will head to grass with calves at side. It will take a pretty special cow to avoid getting shipped due to a calving loss however, even with open cows at the market, supplies will tighten. The lower Canadian dollar also support the non-fed market.

Look for a good cow market as we move through the remainder of the spring and into the summer.

C a t t l e m e n · m ay 2 0 1 4 55

M A R K ETS

Break-even Prices on A-Grade Steers 150

ALBERTA

140 130 120 110 100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

155

ONTARIO

145

Market Prices 215 205 195 185 175 165 155 145 135

Steer Calves (500-600 lb.)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

110

D1,2 Cows

100

135

90

125

80

115

70

105

60

95 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Canfax weighted average price on A-Grade steers

Break-even price for steers on date sold

2014 2013

2014 2013

April 2014 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $168.54/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.08/bu.

Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.00/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 63.03/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . . 93.19/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.18/cwt Break-even (September 2014) . . . . . . . . . . . . 138.94/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . . $173.11/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.84/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.98/bu.

Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . . 77.57/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 104.17/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149.39/cwt Break-even (October 2014) . . . . . . . . . . . . . . . 144.58/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ontario

Alberta

2014 2013

2014 2013

Ontario prices based on a 50/50 east/west mix

Market Summary (to April 5) 2014

2013

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . . . . 717,173. . . . . . . . . . . 673,254 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854 lb.. . . . . . . . . . . . 888 lb.

Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,712,000. . . . . . . . . 8,241,000

Trade Summary Exports 2014 2013 Fed cattle to U.S. (to March 29). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,078.. . . . . . . . . . . 108,733 Feeder cattle and calves to U.S. (to March 29). . . . . . . . . . . . . . . 126,836.. . . . . . . . . . . .81,569 Dressed beef to U.S. (to February) . . . . . . . . . . . . . . . . . . . . . 69.07 mil.lbs.. . . . . 64.54 mil.lbs Total dressed beef (to February). . . . . . . . . . . . . . . . . . . . . . . 97.02 mil.lbs.. . . . . . 83.81 mil.lbs 2014 IMPORTS 2013 Slaughter cattle from U.S. (to February) . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to February) . . . . . . . . . . . . . . . . 48.58 mil.lbs. . . . . . .65.68 mil.lbs *Dressed beef from Australia (to February) . . . . . . . . . . . . 6.88 mil.lbs. . . . . . . . 6.38 mil.lbs *Dressed beef from New Zealand (to February) . . . . . . . . . 2.34 mil.lbs. . . . . . . . 5.85 mil.lbs *Dressed beef from Uruguay (to February) . . . . . . . . . . . . . . 1.18 mil.lbs. . . . . . . .8.50 mil.lbs Canadian Grades (to April 19, 2014) % of A grades +59% 54-58% AAA 24.6 24.3 AA 24.5 8.2 A 1.3 0.1 Prime 0.3 0.6 Total 33.2 50.7

EAST WEST

Total graded 184,386 625,1 22

Yield – 53% Total 11.7 60.6 2.0 34.7 0.0 1.4 0.8 1.7 14.5 Total A grade 98.4%

Total ungraded 8,340 58

% carcass basis 7 9.6% 88.3% Only federally inspected plants

56

C a t t l e m e n · m ay 2 0 1 4

www.canadiancattlemen.ca

 market ta l k

By Gerald Klassen

Corn Outlook

T

he U.S. corn market has a large influence on world coarse grain values and the Canadian barley market.

Over the past month, we’ve seen barley prices delivered Lethbridge increase from $180/mt to $195/mt moving directly in line with the corn market. When barley stocks are extremely tight, barley needs to trade at a premium to U.S. corn to attract imports into Alberta. During years that barley supplies are burdensome, barley tends to trade at a discount to corn as the market functions to encourage demand. The U.S. corn market also indirectly affects feeder cattle prices. We all remember the Midwest drought of 2012 when corn prices reached historical highs causing feeder cattle values to drop sharply and temper Canadian feeder cattle exports to the U.S. Therefore, it is important that all cattle producers have a good idea of the U.S. corn fundamentals.

The USDA estimated corn acres at 91.7 million, down four per cent from the seeded area of 2013. Across most of the Midwest, temperatures have been below normal while precipitation has been normal to above normal in certain regions. If this weather trend continues, it appears the corn crop will be seeded later than normal which tends to result in below-average yields. Later seeding will have the crop pollinating during late July and early August which is usually the hottest period of the summer. A year-overyear decline in acreage will cause the market to be extremely sensitive to weather during this time frame and the futures market generally incorporates a risk premium due to the uncertainty in production.

In the table, I’ve discussed three case scenarios using the USDA seeded acreage estimate but have altered the yields for a simple sensitivity analysis. In the first case study, I’ve used an average yield of 150 bushels per acre which is just above the seven-year average yield of 149 bushels per acre. Over the past years, analysts have become accustomed to factoring in 160 bushels per acre plus but it is important to realize the recent average even with the betteryielding varieties. In this example, production potential is 12.6 billion bushels resulting in a carry-out of 851 million bushels. A fundamental structure this tight would result in corn prices above touching $7 per bushel at some point in the crop year. This scenario would be extremely bearish for feeder cattle prices due to the rising input prices and could result in year-over-year price decline of $20/cwt at local auction markets.

The second scenario portrays an average yield of 158 bushels per acre which is very similar to the 2013 yield. Production would still be under year-ago levels but the carry-out would finish at 1.3 billion bushels, which is basically the same as in 2013-14 and the same as the seven-year average. Using this yield scenario, we can project that prices would also trade in the seven-year average price range between $5 and $7 per bushel. This outlook is neutral to slightly bearish on feeder cattle. Although the carry-out is the same, there would be bouts of higher prices above $6 per bushel which is significantly higher than the prices experienced during the winter of 2013-14.

www.canadiancattlemen.ca

u.S. corn supply and demand USDA 11/12

USDA 12/13

7-year avg.

USDA 13/14

Case 1 14/15

Case 2 14/15

Case 3 14/15

Acres seeded

91.9

97.2

88.8

95.4

91.7

91.7

91.7

Acres harvested

83.9

87.4

81.1

87.7

83.9

83.9

83.9

Yield (bu./ac.)

147.2

123.4

148.9

158.8

150

158

165

1,128

989

1,485

821

1,331

1,331

1,331

12,360

10,780

12,058

13,925

12,585

13,256

13,844

29

162

39

35

35

35

35

13,516

11,931

13,582

14,781

13,951

14,622

15,210

SUPPLY (million bushels) Opening stocks Aug. 1 Production Imports TOTAL SUPPLY USE (million bushels) Feed-waste-dockage

4,548

4,333

5,097

5,300

5,300

5,300

5,300

Food seed industrial

5,867

6,046

5,294

6,400

6,400

6,400

6,400

Ethanol Domestic demand

5,011

4,648

4,008

5,000

5,050

5,050

5,050

10,985

10,379

10,473

11,700

11,700

11,700

11,700

1,600

1,700

Exports

1,543

731

1,788

1,750

1,500

TOTAL USE

12,528

1 1,1 10

12,260

13,450

13,200 13,300 13,400

TOTAL CARRY-OVER

989

821

1,321

1,331

751

1,322

1,810

Stocks-to-use ratio

7.9%

7.4%

10.8%

9.9%

5.7%

9.9%

13.5%

The final case study uses a yield of 165 bushels per acre which would obviously occur under perfect growing conditions. Using this yield estimate, production would finish near 13.8 billion bushels and the carry-out would likely come in near 1.8 billion bushels. This scenario is bearish for new-crop corn values and supportive to bullish for feeder cattle prices. New-crop corn futures are trading near $5 per bushel and the market is concerned about the delayed planting potential. If the carry-out finishes above 1.8 billion bushels, corn prices will drop to the $4 area. Lower input costs will keep feeder cattle prices well established.

When analysts look at a sensitivity analysis like the one above, the question also arises, what does the market need to do for spring of 2015? In the first scenario, the market obviously needs to encourage a sharp increase in acreage through higher prices. The second scenario also needs to see a small increase in acreage to be comfortable but in the third scenario, the market can keep acreage the same or even experience a small decline.

Cow-calf producers and feedlot operators should have a prudent risk management strategy in place given the risks in the market at this time. We all know how quickly the market can change for feed grains and feeder cattle and this year has potential to be a very volatile period in both markets. c Gerald Klassen analyzes markets in Winnipeg and also maintains an interest in the family feedlot in southern Alberta.

He can be reached at gklassen7@hotmail.com.

C a t t l e m e n · M ay 2 0 1 4

57

 GOINGS ON

Sales&Events Events May

22-25 Livestock Markets Association of Canada AGM and Auctioneer Competition, Regina and Moose Jaw, Sask.

June

4-8 Canadian Angus Association AGM and Conference, Temple Gardens Mineral Spa, Moose Jaw, Sask.

8-10 Saskatchewan Stockgrowers Assoc. AGM, Convention Centre and Heritage Inn, Moose Jaw, Sask.

11 Alberta Beef Producers Semi Annual Meeting, Edmonton, Alta.

13-14 Canadian Shorthorn Annual General Meeting, Elkhorn Resort, Riding Mountain National Park, Man. 16 Canadian Beef Breeds Council Golf Tournament, Heather Glen Golf Course, Calgary, Alta.  ADVERT IS E R I N D EX Page Advanced Agri Direct Inc. 11 Ag Growth Industries 13 Airdrie Trailer Sales 51 48 Beef Australia 2015 Boehringer Ingelheim IFC Bow Valley Genetics 50 Brett Young Seeds 9 Canada’s Farm Progress Show 47 46, 50 Canadian Angus Assoc.

Canadian Charolais Assoc.

OBC Canadian Forage & Grassland Assoc.

16 Canadian Gelbvieh Assoc.

50 Canadian Hereford Assoc.

50 Canadian Limousin Assoc.

50 Canadian Red Angus Promotion Society 50 Canadian Shorthorn Assoc.

50 Canadian Simmental Assoc.

50 Case-IH 5 Cattlewomen for the Cure 37 51 Double D Custom Hats General Motors 25 Hi-Hog Farm & Ranch Equipment 51 International Livestock Congress 49 International Stock Foods 50 John Deere Ag Marketing Center IBC 14 a-p Lakeland Group/Northstar Merck Animal Health 41 Nester Livestock 45 New Holland 17 Plain Jan’s Inc. 50 Salers Assoc. of Canada 50 Saskatchewan Stock Growers 49 The Cattle Range 6 UCVM Beef Cattle Conference 53 Vermeer Corporation 27 Wild West Gallery 51 World Congress on Conservation Agriculture 43 Zoetis Animal Health 7, 21, 29

58

C a t t l e m e n · m ay 2 0 1 4

18-20 Canada’s Farm Progress Show, Evraz Place, Regina, Sask.

18-21 Beef Improvement Federation Symposium, Cornhusker Marriot, Lincoln, Nebraska 22-26 6th World Congress on Conservation Agriculture, Winnipeg Convention Centre, Winnipeg, Man. 24 Western Beef Development Centre Field Day, Termuende Research Ranch, Lanigan, Sask.

24-25 T Bar Invitational Golf Tournament, Dakota Dunes, Saskatoon, Sask.

27 Canadian Charolais Association Annual General Meeting, Renfrew, Ont.

July

4-6 Quebec Junior Beef Show, Brome, Que. 9 International Livestock Congress 2014, Deerfoot Inn, Calgary, Alta.

17-19 Showdown 2014 — Canadian Junior Angus Association National Show, Virden, Man. 17-20 Alberta YCSA Classic, Lacombe, Alta.

24-26 Canadian Junior Limousin Conference, Saskatoon, Sask.

25-27 2014 Canadian Simmental Association AGM, Elkhorn Resort, Riding Mountain National Park, Man. 25-27 YCSA National Classic, Elkhorn Resort, Riding Mountain National Park, Man.  Event listings are a free service to industry.  Sale listings are for our advertisers.

Your contact is Deborah Wilson at 403-325-1695 or deb.wilson@fbcpublishing.com

Letters Re “Grazing Habits of Cattle”

My area of expertise is resource management. If I want to learn what is new in the field of resource management I read Rangelands and Rangeland Ecology and Management (published by the Society for Range Management). Thus, the article “Grazing Habits of Cattle” (April 2014 Canadian Cattlemen) struck me as an article with the potential of offering new insights into an old problem I encountered while creating grazing plans for a number of ranches in southern Alberta.

Unfortunately, it is very evident Ms. Thomas failed to review other research dealing with this topic. While, it is true cattle learn plant preferences from their dams (through compounds in the milk or through copying their mother’s grazing behaviour),

29-Aug. 2 Canadian Junior Hereford Assoc.

National Show “Bonanza,” Lindsay Fairgrounds, Lindsay, Ont. 30-Aug. 2 Saskatchewan YCSA Classic, Prince Albert, Sask.

August

1 Canadian Hereford Association Annual General Meeting, Lindsay Fairgrounds, Lindsay, Ont. 1-3 Canadian Junior Shorthorn National Show, Neepawa, Man. 1-3 Manitoba All Breeds Youth Round-up, Neepawa, Man. 12-14 Livestock Gentec Annual Conference and Field Day, Kinsella Ranch and Edmonton, Alta.

17-22 10th World Congress on Genetics Applied to Livestock Production (WCGALP), Westin Bayshore, Vancouver, B.C. 21-22 Maritime YCSA Classic, Truro, N.S.

November

2-9 Farmfair International, Northlands Expo Centre, Edmonton, Alta.

7-16 Royal Agricultural Winter Fair, Exhibition Place, Toronto, Ont. 24-29 Canadian Western Agribition, Evraz Place, Regina, Sask.

January 2015

10-25 National Western Stock Show and Rodeo, National Western Complex, Denver, Colorado, www.nationalwestern.com 21-23 Saskatchewan Beef Industry Conference, Evraz Place, Regina, Sask. c

it is also true they learn through individual exploration (calves begin to experiment as soon as three weeks of age) or copying the grazing behaviour of their peers (cattle learn to consume larkspur or locoweed by copying other cattle). (It also) fails to explain how livestock, like humans, use memory and the senses (taste, sight, smell and touch) to differentiate and remember various foodstuffs and grazing sites.

It is true, Dr. Provenza is a noted expert in his field of study and most of his comments on forage selection in livestock are very insightful. However, some of his comments are very difficult to test using accepted scientific methods, making these concepts nothing more than conjecture.

Nevertheless, despite these and other shortcomings, it is refreshing to see the Canadian Cattlemen publish an article on range science using established scientific facts and not personal opinion.

Hyland Armstrong Cypress Hills, Alta.

www.canadiancattlemen.ca

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