Cct141110

TRACE MINERAL LEVELS REVEALED IN SASKATCHEWAN THE BEEF MAGAZINE

November 2014 $3.00

www.canadiancattlemen.ca

Making the most of every

OPPORTUNITY Morgan (l to r), Lisa, Brad, Tanner Betcker T Bar Cattle Company, Medicine Hat, Alta.

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Little cattle with a mission 22 Straight talk on steroids 40

BEEFWATCH 43

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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 · NOVEMBER 2014 · VOLUME 77, NO. 1 1

 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

Tanner (l to r), Lisa and Brad Betcker, T Bar Cattle Company, Medicine Hat, Alta.

ADVERTISING SALES Deborah Wilson RR 1, Lousana, AB T0M 1K0 (403) 325-1695 Fax (403) 944-5562 Email: deb.wilson@fbcpublishing.com Crystal McPeak (403) 646-6211 / (403) 360-3210 Email: crystal@fbcpublishing.com HEAD OFFICE 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 (204) 944-5765 Fax (204) 944-5562 Advertising Services Co-ordinator: Arlene Bomback (204) 944-5765 Fax (204) 944-5562 Email: ads@fbcpublishing.com Publisher: Lynda Tityk Email: lynda.tityk@fbcpublishing.com Associate Publisher/Editorial Director: John Morriss Email: john.morriss@fbcpublishing.com Production Director: Shawna Gibson Email: shawna@fbcpublishing.com Circulation Manager: Heather Anderson Email: heather@fbcpublishing.com

MAKING THE MOST OF EVERY OPPORTUNITY  H EA LT H

FEATURES

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

Here’s the thing about trace minerals in Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . 10 Out of tragedy: Lessons learned?. . . . . . . 14

Contents of Cattlemen are copyrighted and may be reproduced only when written permission is obtained from the editor and proper credit is given to Cattlemen.

Making a profit . . . . . . . . . . . . . . . . . . . . . . . . . 18

Cattlemen and Canadian Cattlemen are Trade Marks of Farm Business Communications.

Little cattle with a mission. . . . . . . . . . . . . . 22

Cattlemen is published monthly by Farm Business Communications.

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Making the most of every opportunity . . . . . . . . . . . . . . . . . . . . 26

Out of tragedy: Lessons learned?

14

Ebola spread mirrors livestock disease.  S E E DSTO C K

Verified Beef Production . . . . . . . . . . . . . . . 34 Straight talk on steroids . . . . . . . . . . . . . . . .40

DEPARTMENTS

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From birth to beef: The story of Buis Beef . . . . . . . . . . . . . . . . . . 32

BeefWatch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

PRINTED IN CANADA

The editors and journalists who write, contribute and provide opinions to Canadian Cattlemen and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis.

However, the editors, journalists, Canadian Cattlemen and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Canadian Cattlemen and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.

26

Little cattle with a mission

Congratulations!

To our November survey winner, Graham Astley, Carroll, Man. Cover Photo: Supplied by the Betcker family

22

Comment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Newsmakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Our History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Research on the Record . . . . . . . . . . . . . . . . 29 Holistic Ranching . . . . . . . . . . . . . . . . . . . . . . . 30 Prime Cuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Straight from the Hip . . . . . . . . . . . . . . . . . . . 47 CCA Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 News Roundup . . . . . . . . . . . . . . . . . . . . . . . . . 49 Purely Purebred . . . . . . . . . . . . . . . . . . . . . . . . 56 The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Market Talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 Sales and Events . . . . . . . . . . . . . . . . . . . . . . . 62 C AT T L E M E N · N O V E M B E R 2 0 1 4

3

 COMMEN T

By Gren Winslow

truth in pricing Canfax enhances price reporting

W

ith all the celebrating last month over yet another win for the anti-COOL forces at the WTO another significant bit of news may have slipped your notice.

In a note to subscribers Brian Perillat and his team at Canfax finally let it be known that they are starting to collect price information on cattle sold by grid formulas and forward basis contracts in addition to cash prices.

I say finally because Canfax has been researching and thinking about this move for more than a year now, and it is a welcome addition.

The need for it has been clear for some time with the precipitous decline in the number of fed cattle being sold on the cash market. Alberta’s cash trade more or less held around 63 to 65 per cent of marketings until 2009. By then we had cleared out a million and a half head from our bloated herd and were getting back to pre-BSE numbers.

In response people started to worry about how far down the numbers would go, so grid and contract sales became more popular. By 2011 cash sales were down to half the trade, then 40 per cent in 2012 and down to 23 per cent in 2013.

Put another way the weekly average number of cash cattle reported to Canfax declined from a high of 6,505 in 2010 to 1,705 in 2013. In the first four months of 2014 it was down to 793 head per week.

At the same time grid sales went from 17 per cent of the total in 2008 to 29 per cent in 2013. Of course, grid cattle are generally based on the cash plus or minus premiums or discounts for quality. That can be a bit problematic at times when the cash trade is so thin it can’t be reported with any accuracy.

It’s perhaps telling that the same issue of the Canfax weekly newsletter where Perillat announced this change, no Alberta prices were reported for fed steers or heifers.

The biggest growth has been in contract cattle, which grew to 48 per cent of the trade in 2013 from seven per cent in 2008. Not too surprising when you realize grid deals are favoured more when large premiums are available and forward contracts when supplies are tight.

Of course none of these contract or grid cattle are reported, which is the nub of the matter.

The thinning of the cash market by itself is not the problem. The cash just happens to be the most transparent value that can be reported and used up and down the supply chain. In short it’s the base price for the business.

It is also used to set coverage and premiums for cattle price insurance and AgriStability claims. There is an even wider concern since the base cash price is used to calculate losses on the value of cattle and beef moving to the U.S. due to the COOL program.

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C at t l e m e n · n o v e m b e r 2 0 1 4

There are others ways to come up with a base price, of course, and over the past year or two researchers have been looking at the ups and downs of mandatory price reporting, live cattle future prices and the cut-out value set between processors and retailers.

Some have potential in the U.S., where the cash is also plunging, but less so in Canada. With the futures price set in the U.S. we still have exchange rate and basis risk and policy risk such as COOL that interferes with arbitraging values across the border. Cash prices are also needed to calculate the cash-to-futures and cash-to-cash basis which are key to comparing Canadian prices relative to the U.S. A cash price also supplies the historical data needed to calculate premiums and coverage levels in price insurance and stabilization programs.

t this stage enhanced A price information will be distributed only to the feedlots that contribute data Consequently Canfax is reluctant to give up on the cash market. In the past it has built up an envious record for accurately reflecting market value based on voluntary price reporting by feedlots. Now it is asking them to trust Canfax with their grid and contract sales, as well.

What they are asking for is the settlement price for grid sales, net the discounts and premiums after slaughter. U.S. grid sale data are being collected for comparison. On contract sales they are asking for volume and prices or basis levels for forward sold cattle, by month.

As with cash reporting, all marketing data remains confidential. At this stage that means enhanced price information will be distributed only to those feedlots that contribute price data. None of it will be publicly reported, primarily because so few feedlots are reporting at the moment that releasing the data could compromise their competitive positions.

It can be used to check the validity of the present cash market, however, and that, by itself, is of real value. In time, as more feedlots sign up, perhaps the numbers will be large enough in all categories to ensure anonymity so it may be added to the public reports.

Longer term, once cattle numbers do start to increase the cash market should come back into vogue. In the meantime we congratulate Canfax on its new venture and hope for its success.

Truth in pricing — we all need it. c

www.canadiancattlemen.ca

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 THE INDUST RY

NewsMakers A former New Brunswick fisheries minister, Rick Doucet is now responsible for agriculture, aquaculture, fisheries and three other portfolios in Premier Brian Gallant’s new cabiRick Doucet net. Doucet, the MLA for Fundy-The Isles-Saint John West, will also be Gallant’s minister of economic development and minister responsible for trade policy.

Commodity market analyst Kevin Grier says plans are underway to transfer the Canadian Cattle Buyer newsletter from the George Morris Centre, which is set to close by the Kevin Grier end of this year, to his own company, Kevin Grier Market Analysis and Consulting. The switch should occur this month. Grier says his intent is to avoid any disruption in service for the newsletter’s subscribers.

Beef producers attending an Elanco animal health seminar in late September set five minutes aside to figuratively fill a shopping basket with $26,000 in cash or animals for Project Protein run by the Lethbridge Food Bank. The donation will supply the hamburger for a year that goes into the monthly food hampers for 550 local families in the community. The province is paying the processing costs for all animals donated to Project Protein.

Letters Look to hog grading for answers

Thank you for continuing the discussion about grading changes in the Sept. issue of Canadian Cattlemen. You are absolutely right in saying “all producers care to do is stay in step with the U.S.” If the hog industry had used this mantra U.S. consumers and retailers wouldn’t be advertising Canadian bacon. Hogs were

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C at t l e m e n · N o v e m b e r 2 0 1 4

Beef Farmers of Ontario (BFO) is reminding producers that their provincial checkoff increased to $4 per head as of November 1.

Three dollars remains with the BFO to support provincial programs such as Ontario Corn Fed Beef. The other dollar funds Canada Beef Inc. and the Beef Cattle Research Council.

The Canadian Beef Breeds Council has opened up some new doors for communicating with breeders around the country and buyers across the world via a new website, www. canadianbeefbreeds.com, Facebook page and a new twitter handle, @CanBeefBreeds.

The B.C. Cattlemen’s Association (BCCA) has been authorized to act as a third-party provider for the Canadian Cattlemen’s Association Beef InfoXchange System (BIXS). This means the BCCA, at the behest of producers in the province, can register them on BIXS 2.0 and either help them upload and retrieve data on their animals and carcasses or do it for them. So far, only the Manitoba Beef Producers, Beefbooster and now BCCA have agreed to take on the responsibility of being third-party providers. More information is available at http:// bixs.cattle.ca/third-party-access/.

Dr. Patricia Lechten, a companion animal veterinarian from Barrie; Dr. Suminder Sawhney, a veterinarian with the Canadian Food Inspection Agency and Dr. Sandra Rice, a companion animal veterinarian from Brampton, were elected online to serve on the council of the College of Veterinarians of Ontario. The new members will take their seats on the council this month.

In conjunction with the Royal Agricultural Society of the Commonwealth (RASC), Northlands provided a scholarship worth $1,250 so Next Generation delegate, Lauren Hennig from Sherwood Park, Alberta could attend the 26th Commonwealth Agriculture Conference in Brisbane, Australia last month. Earlier this year, Northlands was selected to host the 28th Commonwealth Agriculture Conference in conjunction with Farmfair International in November 2018. The RASC is a confederation of 51 national and regional agricultural show societies, agricultural associations and research bodies working in 24 Commonwealth countries.

UFA has recently made some changes to its livestock division. Simon Cobban has been promoted to sales and service manager for feedlot technologies and Ted Carruthers is the new livestock business development manager.

UFA operates 35 farm stores across Alberta.

Of the 12 commissioners and six vicechairs B.C. Agriculture Minister Norm Letnick appointed to the Agricultural Land Commission’s six regional panels last month, four were beef producers or had a connection to the beef sector. They are: Rick Mumford, Alexis Creek; Ian Knudsen, Creston; Jerry Thibeault, Cranbrook and David Merz, Fort Fraser. c

overfat in Canada and the U.S. Canadian producers changed their grading system to an index system where average hogs were given a 100 index. However, if you produced above-average hogs you received more money per pound. There was an incentive to raise efficient carcasses that indexed up to 116.

As long as beef producers receive the same price per pound for beef that yields 59 per cent as beef that yields 69 per cent, there will be no change. It has been proven and BIXS continues to prove, that there are lots of carcasses that are AAA and yield very

high. However, we are not giving producers the signal to raise a superior product.

Our goal seems to be to copy the U.S. and then brand it and say it’s different because it’s Canadian. It would be much easier to brand Canadian beef with a unique identity that is superior to that of U.S. producers.

Much like the qualities given to Canadian Hard Spring Wheat and Canadian bacon, we will be copied. But then they will be playing catch-up, instead of us.

Kelly Yorga Flintoft, Sask.

www.canadiancattlemen.ca

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 OUR HISTO RY

By Mrs. E. Lynch-Staunton

THE LEGEND OF THE WHITE HORSES OF CHIEF MOUNTAIN From Canadian Cattlemen, June 1948

Y

ou may have noticed that the Chief of the Peigans, Yellow Horn, always rides a grey horse in the Lethbridge Stampede parade.

And they usually capture the prize for they, horse and rider, make a wonderful presentation — the chief in snow white buckskin embroidered in beadwork in symbolic designs and with his fine war bonnet of white eagle feathers and ermine skins sweeping almost to the ground, and his mount with trappings equally fine.

The horse is a particularly fine animal, powerful and noble looking, lively enough too but very intelligent.

After the parade I went up the hill to the Indian encampment. There I sought out the chief and his wife. Mrs. Yellow Horn is a grand woman in every way. Her face is truly beautiful and her manner so gentle and kindly. She is convent educated and she speaks with a soft and gentle voice. The chief himself does not speak much English; he stays within his Indian tongue, and his wife usually acts as interpreter for him. They were standing before their teepee, as I came up, still in their ceremonial garb, and the superb grey horse carrying his head high, stood between them. They were a perfect trio.

When I admired the horse they were both pleased. The chief nodded, his war bon-

net swaying with the dignified gesture, and Mrs. Yellow Horn smiled graciously. Then her eyes turned to the mountains, and ran along their tumbled length until, her face strangely lighted, they rested on Big Chief Mountain and, still smiling, but hesitating a little, she turned to me again and with a slight indication of her comely head she said, “There!”

That was all, but instantly my imagination was fired. I remembered the legends I had heard of Big Chief Mountain: That there once was a great chieftain who grazed his wondrous grey horses, the swiftest and most beautiful horses that ever were, on the top of this mountain, and they were endowed with fabulous strength and speed and powers of endurance from the grasses growing on the summit there. And that when the chieftain and his band departed on the hunt, or on forays, or the warpath, he left his marvellous steeds in the care of his daughter, a beauteous maiden who was to preserve them even unto death.

But a jealous and rejected suitor of the maiden, in revenge, divulged the secret of the pathway leading to the mountain summit to their enemies. And when the chieftain was absent they ascended the mountain, and gloating in the anticipation of possession of the magnificent white horses and of

the maiden, they swarmed over the summit.

There seemed no escape for the girl and her precious charges. But on a moonlit night of sweeping wind and snow, mounted on her favourite snow-white horse, she led her horses to the very verge of the mountain top; then at her signal they disappeared in the raging whirling snow.

Their would-be captors dashed in pursuit of them to be carried headlong over the mountain edge.

So even yet, on moonlit nights when the snow is swirling over the mountain tops, the Indians look to the westward and noting the glistening snow rising over the mountains, they say: “White horses ride swift an’ high, good hunting!”

Once it was the buffalo they hunted in their thousands — to feast upon the tongues, but since the buffalo have disappeared many a fat buck has been their solace.

Could it be that Chief Yellow Horn’s grey horse is of the line of the fabulous steeds that fed on the summit of Chief Mountain.

Or even that Mrs. Yellow Horn is a descendant of the Big Chief’s beauteous daughter who loved the grey horses so greatly? c For more of the past from the pages of our magazine see the History section at www.canadiancattlemen.ca.

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 FORAGE

By Debbie Furber

HERE’S THE THING ABOUT TRACE MINERALS IN SASKATCHEWAN

T

age samples from three pastures in each of four soil zones (brown, dark brown, black and grey) during spring and fall of 2012 and 2013. Up to six forage species representing commonly grazed forages at each site were individually sampled.

SEASONAL DIFFERENCES

Overall, season had the most notable influence on trace mineral content of tame and native species across all soil zones.

Mineral levels were similar both years, but varied significantly from spring to fall within each year. Calcium, magnesium, iron, manganese and molybdenum levels were lower in spring than fall, while the opposite was apparent for phosphorus, potassium, sulphur, zinc and copper levels.

SOIL ZONE INFLUENCES

Molybdenum levels were not an issue on their own. The highest average level found was 3.72 parts per million (ppm) in fall 2012, which was well below the threshold of less

than 5.0. However, the trend of inadequate copper levels decreasing in conjunction with sufficient molybdenum levels increasing had an adverse effect on the copper-to-molybdenum (Cu:Mo) ratio, particularly in the grey soil zone.

Iron levels across all forage types, soil zones and seasons were sufficient to meet the requirements of grazing beef cows and growing calves. The highest concentrations were found in fall samples from the grey soil zone.

There were no significant differences in forage selenium content across soil zones.

All samples in the brown soil zone and nearly all in the dark brown and grey soil zones were adequate. The lowest proportion of samples with adequate selenium was in the black soil zone, but still, 82 per cent of the samples contained sufficient selenium to meet the 0.1 ppm requirement for pregnant and lactating beef cows and growing calves. Averages of project samples Continued on page 12

PHOTO: LAURA HOIMYR

he Saskatchewan Forage Council (SFC) recently completed a broad evaluation of trace mineral content of pasture forages across Saskatchewan with a view to learning whether mineral programs for cattle on pasture should differ according to season, soil type and/or forage type.

The findings indicate just that.

“Season and forage species had significant effects on trace mineral levels. This suggests that varying the mineral supplementation program for grazing animals is necessary between spring and fall,” says SFC executive director Leanne Thompson.

Of greatest concern is that copper and zinc were not adequate in any forage species, season or soil zone to meet the requirements of grazing beef cows or growing calves.

The Western Beef Development Centre, University of Saskatchewan, Agriculture and Agri-Food Canada, and Saskatchewan Agriculture partnered on this extensive project which involved collecting fresh for-

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C AT T L E M E N · N O V E M B E R 2 0 1 4

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ranged from a low of 0.46 ppm in fall 2013 to a high of 0.57 ppm in fall 2012.

This finding was somewhat of a surprise because of the general recommendation in many regions to provide minerals containing selenium and selenium injections for newborn calves to prevent white muscle disease.

The idea behind this is that if soil is deficient in selenium, then forages will be lacking as well.

It’s known that selenium levels vary across Prairie soils, but soil testing wasn’t part of this project to examine the relationship between soil and plant mineral levels.

Thompson cautions producers not to stop supplementing selenium or iron based on these findings alone. The project identified general trends, but producers need to test their feeds to know what’s going on in their own pastures. As well, mineral interactions are complex and there may be some reason why cattle aren’t able to absorb all of the selenium in forages.

Forage species

Species had a significant effect on mineral content and nutritional quality.

As mentioned, copper and zinc levels were inadequate across the province. This held true for all species, with zinc content being lowest in meadow brome. Copper was lowest in crested wheatgrass, Kentucky bluegrass and western wheatgrass. Alfalfa had slightly higher levels of copper in fall compared to spring while the opposite trend was noted for the grasses.

Molybdenum was lowest in fall-sampled Kentucky bluegrass, meadow brome and smooth brome. The average Cu:Mo ratio was lowest for Kentucky bluegrass, and smooth brome during fall.

Meadow brome, smooth brome and western wheatgrass had adequate levels of manganese in more than 80 per cent of samples. It was lowest in crested wheatgrass sampled in spring.

The tetany ratio was safely below the 2.2:1 threshold in fresh pasture forages across all soil zones in both seasons, but tended to be highest in spring. Smooth bromegrass in spring had tetany ratios of concern averaging 2.5:1, while western wheatgrass at 2.1:1 and meadow brome at 1.9:1 warrant close monitoring as well when grazed in spring.

The tetany ratio is the potassium level relative to the sum of the calcium and magnesium levels. The ratio increases as potassium increases or the level of calcium and, or magnesium decrease.

12

C at t l e m e n · N o v e m b e r 2 0 1 4

Tetany is a condition diagnosed by a low blood magnesium level. This can be caused by excessive potassium interfering with absorption of calcium and magnesium.

Potassium levels may accumulate in forages on pastures frequently fertilized with manure, when growing conditions are dry, or in low-pH soils.

Copper-molybdenum ratio

The overall low level of copper and zinc in Saskatchewan forages is of chief concern because of the economic importance of these trace minerals. They influence reproductive performance (onset of estrus and puberty, conception rates, calving ease, survival, sperm production and testicle size), general growth and animal health.

Over 80 per cent of samples were deficient in copper and close to 80 per cent didn’t have enough zinc to meet the needs of beef cattle. Only two per cent of forages in fall 2013 had sufficient copper.

Though feed testing could show adequate copper content, molybdenum will tie up some of it; therefore, the actual amount of copper cattle absorb from the forage could be significantly lower than the amounts feed tests indicate. High sulfate levels in water also contribute to this type of secondary deficiency in copper, zinc and/ or manganese.

The Cu:Mo ratio should be above 5:1.

A ratio of 3:1 is borderline, indicating that you need to be thinking about adjusting your mineral program before the ratio drops into the danger zone of 2:1 or lower, Thompson explains.

In the black soil zone, 79 per cent of the samples met the 5:1 mark in spring. The spring average was 8.4:1, but that fell to average 4.2:1 by fall with only 23 per cent of the samples having ratios at or above 5:1.

In the brown and dark brown soil zones, more than a quarter of the samples had ratios slightly higher than 4:1 in spring. The ratios fell to 2:1 to 2.5:1 by fall, when only about five per cent of the samples had the recommended minimum 5:1 ratio.

The issue was most prominent in the grey soil zone, where only six per cent of samples had ratios of 5:1 or higher in spring and that fell to one per cent by fall.

The spring average was 2.4:1 and the fall average was 1.4:1.

A general recommendation is to consider increasing copper and zinc and perhaps decreasing molybdenum and magnesium in mineral supplements throughout the

 p i nc h o f pasture

How to collect a sample on pastures Representative samples of standing forage for feed tests are best collected by using your thumb and forefinger to tear off plants at grazing height while walking in a pattern across the pasture. The idea is to sample what cattle actually eat, so avoid undesirable spots like weed patches and leftover mature forages. Mix well and take out enough to fill a large Ziploc bag. Seal and label it with your name, the field, forage species and date, then place it in the freezer until shipping to the lab for dry-down and testing.

Leanne Thompson

growing season to offset the natural decline in copper and increase in molybdenum.

Feed testing is highly recommended because so many factors, such as the age of the stand, grazing management, soil fertility and growing conditions come into play, Thompson says. If you see problems, contact your veterinarian right away.

Effective supplementation on pasture, whether with minerals, energy or protein, relies on closely monitoring mineral content and quality of pasture forages, as well as water sources over the course of the grazing season and from year to year.

The full report with tables illustrating the results, mineral requirements for beef cattle, and fact sheets for each soil zone are available on SFC’s website at www.saskforage.ca. c

www.canadiancattlemen.ca

STROMSMOE HEREFORDS AND BLACK ANGUS 30 TH ANNUAL PRODUCTION SALE TUESDAY, DECEMBER 2 - 1:00 PM At the ranch 11/2 miles south of Etzikom, Ab on Hwy 885

VIDEO SALE COME EARLY TO VIEW THE CATTLE

65 PUREBRED HORNED HEREFORD OR BLACK ANGUS BULLS, 90 COMMERCIAL BRED COWS OR HEIFERS, PLUS YOUR PICK OF OUR ENTIRE 2014 BLACK ANGUS HEIFER CALF CROP.

st 10 0W ET NJ W 73 S M3 26 Tru

SELLING HERD BULL GENETICS

Co nn ea ly Ea rn an 07 6E

• Powerful stacked pedigrees with generations of influential A.I. sires • Angus sires this year include Earnan, the $235,000 - 2012 high seller for Connealy, Nebraska, and Harvestor, the $275,000 - high seller for SAV, North Dakota • Hereford sires this year include 0002X, the $55,000 - 2011 high seller for Holden, Montana and Trust the 2012 Denver Grand Champion

SELLING HERD BULL PERFORMANCE AND E.P.D.'s • The average E.P.D.'s of the Angus bull calves in the sale rank in the top 33% of the breed for B.W., the top 3% for weaning, the top 1% for yearling weight, the top 14% for milk, the top 7% for Rib eye and the top 5% for marbling

AT STROMSMOE'S YOU GET MORE BULL FOR YOUR MONEY • The long yearling bulls will be out grazing in a 250 acre pasture right until sale time. They may be a bit leaner than you are used to but this exercise promotes soundness which enables us to continue offering the best guarantee in the business - 3 years unconditional. We would be pleased to winter bulls at cost. We offer free delivery on all cattle within 300 miles, right to your ranch.

For a catalog, more information, or a free sale DVD please call Nyle & Vicki

(403) 666-3957 cell (403) 878-3957

email: nstromsmoe@yahoo.ca Box 505, Etzikom, AB T0K 0W0

Clint

(403) 666-2186 cell (403) 647-6088

 HEALTH

By Ron Clarke, DVM

OUT OF TRAGEDY: LESSONS LEARNED?

G

lobal health authorities watch with uncertainty as the human ebolavirus tragedy in West Africa unfolds.

First recognized in the summer and fall of 1976, the ongoing Zaire ebolavirus outbreak is the largest since its discovery — nearly 9,300 cases and over 4,500 deaths.

It continues to spread through the Democratic Republic of the Congo (or Congo, formerly Zaire, since 1997), Guinea, Sierra Leone and Liberia. The international community is on high alert.

The livestock industry also needs to keep abreast of what’s happening.

Ebola tends initially to mimic a range of other diseases, with fever, headache, and joint and muscle pain. But infection progresses to more serious symptoms after a week or so to include vomiting, diarrhea, impaired liver and kidney function, and both internal and external bleeding. Once these symptoms develop, consequences become tragic. Of the five Ebola species, the Zaire ebolavirus is usually regarded as the most deadly, with case-fatality rates as high as 90 per cent. The current outbreak has a mortality rate of about 55 per cent.

Ebola is a filovirus, a long, thread-like organism in the same family as Marburg virus, which was discovered a few years earlier. Both cause severe hemorrhagic fevers in humans and non-human primates.

WAKE-UP CALL?

The West African outbreak should be a wake-up call for many, including the livestock industry in North America. There’s an effect much greater than just the number of

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deaths. The scale of this outbreak is unprecedented. First of all, Ebola, for the first time, has invaded large urban centres. The disease is on the verge of gaining a foothold internationally as people carrying the virus travel the globe. Cases have recently been reported in the Philippines, Spain and the U.S. The bush meat trade has been clearly identified as an inciting cause of Ebola transmission and with that comes the danger of other highly infectious agents like foot and mouth disease (FMD) being dragged across the globe as a result of illegal trade in bush meat.

Nearly 40 years and many outbreaks later, there is still no specific treatment and no vaccine for Zaire ebolavirus, or any of its close viral cousins. Many ask, “Why not?”

The answer is elusive, but a key element has characterized the disease to this point in time. Ebola is a disease that strikes a few people every few years in impoverished and faraway places. Until the current outbreak, all five species of ebolavirus — Zaire was just the first to be found — had accounted for just over 9,000 reported cases around the world. And although a dreadful and merciless virus, the market for a therapy or a vaccine is very small on a world scale.

Bottom line: the pharmaceutical industry’s interest in things that don’t have wide applicability is limited. In the words of Dr. Tom Frieden, director, Center of Disease Control and Prevention, “The international medical community has other, more pressing infectious diseases to worry about.”

Spurred by fears that Ebola might be turned into a bioweapon, work on this group of viruses continues in a number of

academic and government labs around the world, which may pay dividends for people affected by outbreaks. For now there’s nothing ready-for-prime-time tomorrow.

In the meantime, a Canadian and an American group have combined their work to produce an antibody cocktail dubbed ZMAPP that’s very promising. There is very little of the substance and using it is fraught with huge ethical and logistic challenges. The compassionate use of a novel medication, with limited quantities available, is an ethical landmine. With agents like ZMAPP come the tough questions: whom to give it to, how to get approvals, what about informed consent for a medication that has never been tested in humans?

For the short term, controlling West Africa’s Ebola outbreak will have to rely on isolation of patients, stringent infection control precautions and vigorous tracing of contacts. The real challenge is performing these activities in a crumbling health care system that is severely stressed. At every turn, cultural beliefs create active opposition to control measures.

THREAT OF FMD

All financial incentives aside, poor countries serve as incubators of emerging disease with potential implications for both humans and livestock industries in both developed and underdeveloped countries.

Sierra Leone, one of the countries at Ebola’s epicentre, has over five million people.

About 62 per cent of the population lives in rural areas and depends on agriculture for food and income. Seventy per cent of the

www.canadiancattlemen.ca

HEALTH

population lives in absolute poverty. Life expectancy at birth is estimated at 56 years, and adult literacy level ranges from 48 per cent for men to 27 per cent for women. The population is composed of 18 different ethnic groups. The country is home for around two million cattle, sheep and goats. The bush meat trade is rampant.

DEADLY JUMP

According to the World Health Organization (WHO), humans get Ebola through close contact with the blood, secretions, organs or other bodily fluids of infected animals (including other humans), so people who consume or otherwise handle certain bush meat are at particular risk. There is growing consensus that fruit bats are ground zero for Ebola. “Researchers think that the natural host of Ebola virus are fruit bats, and that the virus is transmitted to non-human primates and then to humans through the bush meat trade,” said Purdue University’s David Sanders, a leading expert on zoonotic diseases.

Certain cultures in Africa regularly consume bat meat. The possibility of direct transmission from fruit bats to humans has not been ruled out. Non-human primates, a favourite target of the bush meat trade, might become infected as they feast on fruit contaminated by foraging bats.

According to researchers studying the deadly virus, more animals than previously thought may carry Ebola. Chimpanzees, gorillas, fruit bats, monkeys, forest antelope and porcupines found ill or dead in the rainforest have been a source of ebolavirus.

Ebola spreads in a community through human-to-human transmission. Direct contact with blood, secretions, organs or other bodily fluids of infected people, and indirect contact with environments contaminated with such fluids are common routes of infection. The virus gains entry through broken skin or mucous membranes. The Center of Disease Control (U.S.) recently stated that aerosol transmission of ebolavirus might occur. Burial ceremonies in which mourners have direct contact with the body of the deceased person also play a role in transmission of Ebola. Men who survive the disease transmit ebolavirus in semen for up to seven weeks after recovery from illness.

THE BUSH MEAT DILEMMA

Unable to put beef and fish on the table courts the spread of disease through animals.

Meat derived from wild animals (bush meat) is an important protein source. It is estimated between 30 and 85 per cent

of daily protein intake of Africans comes from bush meat. The unsustainable nature of harvesting bush meat and the risk for human health after consumption creates a serious threat to long-term food security in many African countries.

Across sub-Saharan Africa, livestock agriculture is becoming a critical source of protein for inhabitants. Disease is its biggest enemy. The area is home for 12 of the 15 animal diseases considered by the World Organization for Animal Health (OIE) as the most contagious. The supply of meat from domestic herds is small compared to the multi-billion dollar bush meat industry.

The urban population of the Congo Basin consumes one million to five million tonnes of bush meat annually. The underground trade reaches into large cities like New York, London and Toronto. Up to 7,500 tonnes finds its way into the U.K. every year.

for diet is far harder. Information about the cause and spread of disease has to be translated in simple ways for ordinary people to understand. There are those who believe that government officials invented Ebola to avoid holding elections. Health workers have been accused of introducing the virus. Witchcraft and sorcery creep into the picture at every turn. While many cases of Ebola are contracted during disposal of the dead, changing ancient customs associated with funerals is extremely hard.

In the end, it seems Ebola is here to stay.

Though the present outbreak emerges in ways not previously encountered, the world holds its breath that somehow the collision between poverty, putting protein on the table and basic medical science will ultimately produce solutions to quell the tragedy. The unintended consequences of the bush meat trade, the great difficulty in managing disease in underdeveloped countries and the ability of infectious agents to get on an airplane one day and be somewhere else the next are concerns. Most important, though, are the lessons to be learned. c

THE COMMUNICATION BARRIER

Promoting hygienic practices to avoid contracting Ebola is a protracted and largely ineffective endeavour. Urging new norms

“When my pen riders pull cattle, I want them to have a fast acting treatment that’s cost-effective.”

It just makes sense to treat cattle for BRD with the new generation macrolide, that is fast acting,1 long lasting2 and has a price that won’t break the bank. (And it’s plastic, so you won’t break the bottle either.) ®

Treat them with ZACTRAN .

Ask your veterinarian why ZACTRAN is ideal for cattle in your feedlot.

1. Giguère S, Huang R, Malinski TJ, Dorr PM, Tessman RK & Somerville BA. Disposition of gamithromycin in plasma, pulmonary epithelial lining fluid, bronchoalveolar cells, and lung tissue in cattle. Am. J. Vet. Res. 72(3): 326-330 (2011).

2. Based on label claims.

ZACTRAN ® is a registered trademark of Merial Limited. © 2014 Merial Canada Inc. All rights reserved. ZACT-13-7558-JAD-E

www.canadiancattlemen.ca

C AT T L E M E N · N O V E M B E R 2 0 1 4 BOV_14106_CanCattleman_nov_Zactran_Metaphy.indd 1 dossier : BOV-14106

client : Merial

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relecture

D.A.

épreuve à

The Value of Research and Development in the Forage and Grasslands Industry

By Ron Pidskalny, Executive Director — Canadian Forage and Grassland Association

One is AC Mountainview sainfoin, selected from populations grown in mixed stands with alfalfa under a multicut system. Sainfoin, when grown with

CANADIAN FORAGE & GRASSLAND ASSOCIATION www.canadianfga.ca Ph: 780-430-3020

The second is cold-adapted rhizobia suitable for temperate regions such as Canada,where cooler temperatures limit the function of symbiosis between forage legumes and rhizobia. For example, soil temperatures in the Québec City region range from 10 to 15 C in the spring, resulting in poor regrowth in clover after overwintering – and inhibiting the performance of both the rhizobia and the legume. AAFC’s “Arctic” rhizobia, however, are psychrotrophs, meaning they grow well even at temperatures as low as 0 C. While Arctic strains may inoculate an array of legumes, the most efficient symbiotic association for nitrogen fixation has been with sainfoin. Another strain, adapted to alfalfa, improved spring regrowth after overwintering under stressful conditions.

Investment in genetic improvement generates striking rates of return. A new disease-resistant forage variety, grown under well-researched management practices, including producer experimentation and innovation, can provide incremental increases in yield (Figure 1). Older varieties, especially under disease pressure, yield less and reduce potential returns. The benefits of using Arctic inoculants in forage legumes may also increase forage yields (Figure 2). Combining new varieties with Arctic inoculants could produce even greater benefits for forage producers and end-users.

Canadian forage production is suffering due to the lack of commercial availability of inoculants for smaller acreage legumes. In discussions with industry stakeholders such as inoculant manufacturers, forage seed wholesalers and retailers and a number of public and private sector institutions, the CFGA is taking a leadership role in restoring the availability of smaller-acreage legume inoculants.

Figure 1. Yield Gains in New Forages with Optimized Use of Inputs

RELATIVE YIELD

The importance of productive forages and grasslands for the Canadian livestock and dairy sectors is clear. Unfortunately, Canada has seen a substantial decline in investment and expertise in forage research. Between 1985 and 1998, research expenditures declined by 55 per cent, research capacity has continued to decline, funding has been inadequate and sporadic, goals have been shortterm, and there has been no long-term commitment to building or maintaining infrastructure. Despite reduced support for innovative research, Agriculture and Agri-Food Canada’s (AAFC) forage scientists have continued to develop new forage technologies.In spite of the odds, two have piqued the interest of forage and grassland sector stakeholders.

the correct proportion of alfalfa, mitigates the risk of bloat associated with alfalfa, permitting safe grazing of high-quality, highly productive forage stands.

New resistant variety Old variety without disease pressure Old variety with disease pressure

YEARS AFTER VARIETY INTRODUCTION

Figure 2. Yield Gains in New Forages with | Arctic and Temperate Inoculants

RELATIVE YIELD

Livestock producers’ marketing plans sometimes focus on capturing more value from lower animal supplies, rather than moving more finished product.

Given the current low Canadian cattle inventory, this may be particularly relevant for beef producers. The dairy industry also appreciates the concept of value capture, where providing an appropriate, high-quality diet ensures proper rumen function and optimizes milk production. For many dairy producers, the lowest-cost source of nutrients is high-quality forage. These sectors are the largest forage users in Canada, with 80 per cent of Canada’s beef production and 60 per cent of a dairy cow diet dependant on forages.

Without inoculant With temperate inoculant With ”Arctic“ inoculant

YEARS AFTER INOCULANT INTRODUCTION

Join the discussion at CFGA’s Fifth Annual Forage and Grassland Conference.

Nov. 17-19 in Bromont, Québec.

For more information visit: www.canadianfga.ca/events/current-events

learn more about how peter farms smart at nhsmart.com/peterJ 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. NHM04148906L

 GRAZING

By Steve Kenyon

MAKING A PROFIT

T

here are two things that I hear farmers complain about all the time, other than the weather.

It’s that they don’t have enough time or enough money. If this is you, I might have a solution for you.

Many years ago I was struggling to keep my farm afloat. I was working a full-time job, raising a young family and trying to make some money with cattle. I was good at all of the production practices involved with cows.

I was bale grazing, feeding very low cost, calving rates were good, my pasture management was better than most but I was still broke all of the time. Why was I not making a profit? I was desperate to figure this out.

I attended the Ranching for Profit school in 2001 and this was where I was first introduced to the Gross Margin Analysis. I was surprised that I had never seen anything like it in school before, even though I did achieve two college diplomas in agriculture in my post-secondary education. I further pursued

my private industry education and looked at the Gross Margin Analysis from a few different points of view. Holistic Management has a good model of it and I added a few more ideas from the TEPAP course out of Texas.

My model has evolved over the years but it is still the same concept. You need a Big Number, and then subtract a Little Number from it! Then you make a profit. It’s that simple.

I will warn you, when you first dive into a gross margin, it can be overwhelming. It’s a lot of paper and a lot of numbers, but I like to keep it simple and it is really not that complicated once you get the hang of it. If we have a Big Number minus a Little Number, we have a positive answer. If it’s the other way around, we are in the negative. We just do this many, many times in the Gross Margin Analysis. I’ll try to give you a quick outline of my model. Follow along on the diagram if you will. It shows three separate profit centres that contribute to the business.

Greener Pastures Ranching Ltd.

Our farms are made up of different profit centres. We might have a cow/calf profit centre, a hay profit centre, a silage profit centre, a grain profit centre, a feeder profit centre or a goat profit centre. As you can see, the list can go on and on. The key is to separate all of the revenues and costs, and then allocate them to each individual profit centre. Most farms have all of the costs lumped together and you cannot see the margins individually.

Our first step is to calculate the gross margin on each profit centre. This step involves using the gross product and subtracting all of the direct costs. Direct costs are costs that get used up and are usually on a per head basis or on a per acre basis. A couple of examples might be the hay that you feed or the seed that you plant. For every cow you own or for every acre you plant, you need one more unit of hay or one more unit of seed. In the end, they are gone. If your gross product is the Big Number, and all of your direct costs add up to be the Little Number,

Business OH

Profit TCM

Profit Center 1 Contribution Margin

Profit Center OH

Profit Center OH

GM

Direct Costs

Profit Center 2 Contribution Margin

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Profit Center OH

GM

GM

Gross Product Direct Costs

Profit Center 3 Contribution Margin

Gross Product

Direct Costs

Gross Product

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GRAZING

you have a positive margin. This is done for each profit centre.

We then look at each profit centre’s margin as the new Big Number and calculate its contribution margin. The small number will be the overhead costs that are specific to the profit centre, but are not used up. These are known as the profit centre overhead costs.

Some equipment and labour costs are calculated here if they are specific only to the one profit centre. We also include the opportunity costs and depreciation costs here. If the gross margin is big and the profit centre overheads are small, we have a positive contribution margin.

We have now done these calculations on every profit centre which, on some farms, can be a lot of calculations. Now we can add up all of the contribution margins of all of the profit centres to get a total contribution margin. This is our new Big Number.

To find out if we made a profit or not, we still need to use the total contribution margin and subtract the business overheads. These overhead costs include all of the remaining costs not allocated to a profit centre. These might include utilities, labour, accounting, and/or equipment costs, just to name a few. We also include the opportunity costs and depreciation costs here. If your contribution margin is bigger than your business overhead costs, you have made a profit. If not, you better go back and replan and get it right. The advantage to this analysis is that it will show you exactly what you need to fix. Any place in the paperwork the Big Number is too small and/or the Little Number is too big creates a negative result. You need to change your plan.

In the end, in most cases, some profit centres will be positive while others might be negative. Now we have some good information which will help us make good economic decisions on the farm. In a lot of cases, we end up making financial decisions which can get us into trouble down the road. Once we see where our farms are losing money, we have a couple of options. We can fix it, or we can stop doing it.

To answer my first statement, if you do not have enough time or money, this analysis might get you more of both. If you stopped working at the profit centres that are losing money, you would not only have more money left over, but you will also have more time available to work on the profit centres that are making you money.

A lot of farmers think that if we just get bigger, we can make more profit. However,

www.canadiancattlemen.ca

business, find somewhere that teaches this kind of analysis. It is a small investment in your business, with huge dividends in the long run. c

that is not usually true. Only if your margin is positive, will it make you more money. (Or in some cases, lose you less money). Only then, should you expand your profit centre.

This understanding of the Gross Margin Analysis was the biggest breakthrough that my business ever had. It allowed me to make better economic decisions instead of always making financial decisions. If you are looking for a breakthrough in your

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.

“On this farm, we’re the experts.”

Sean Gorrill – FCC Customer

More of Canada’s farm experts choose to do business with FCC Together, we’ll create the financing plan that works for you. We get to know you, your farm and how you want to grow. If you’re ready to get down to business, talk to one of our farm business experts.

fcc.ca/Expert2Expert 1-800-387-3232

C AT T L E M E N · N O V E M B E R 2 0 1 4

19

IT’S FALL-RUN

. . . AND WE ARE HERE TO HELP !

Here’s a QUICK tag-handling reference for day-to-day operations

and getting ready for animal transport:

Confirm your Canadian Livestock Tracking System (CLTS) database account information each time you purchase approved radio frequency identification (RFID) tags at your local tag dealer or using the Canadian Cattle Identification Agency (CCIA) producer-direct web store at tags.canadaid.ca. Keeping your account information current will prevent duplicate accounts from being created in the database and it will ensure the tags you purchase are issued to the correct account - your account, which is critical for data integrity and effective livestock traceability. NOTE: In order for tags to be issued to your account, make sure there is enough personal information entered to populate your CLTS database account.

Use approved tags that are manufactured for the recommended livestock species only (i.e., use approved bison tags for bison; use approved beef tags for beef cattle; use approved sheep tags for sheep; use approved dairy tags for dairy cattle). There are approved tags for each livestock species in the value chain.

Keep the receipt from your tag purchase and any tag labels included in the packaging for future reference (e.g., herd management and cross-referencing records, age verification, animal transport, etc.).

Check your CLTS event transactions for errors. When a transaction error occurs, the CLTS database cannot process the event (e.g., if a transaction error occurs during age verification, the birthdate information will not process and the animal will not be age verified).

Store tags in a secure and clean environment at a moderate temperature. Optimally, tag animals in moderate temperatures only.

Be aware of common reasons for tag loss: Incorrect placement, incomplete tag application, inadequate hygiene, infection and tag hazards (e.g., twine, wire fence, heavy brush, some bale feeders, etc.).

Ensure the animal is properly restrained, which will help to stabilize its head while you are applying the tag.

Use the recommended tag applicator, pin and male stud for the specific tag type and brand.

Apply tags as recommended by the manufacturer’s directions.

When applying a tag, ensure the male portion of the tag is on the back of the animal’s ear.

Apply tags at approximately 1/4 of the length of the animal’s ear from the head between the two branches of cartilage to optimize tag placement and retention.

Use tags and applicators that are clean and free of debris. Apply antiseptic to tag and tag applicator between animals while tagging to help control infection. Disinfect both sides of the animal’s ear before applying the tag.

Do not sell approved CCIA RFID tags if you are not an approved tag dealer (i.e., at a farm sale, estate sale, garage sale, yard sale, online sale, etc.). Purchase approved CCIA RFID tags from CCIA-approved tag dealers or CCIA’s producer-direct web store at tags.canadaid.ca only. Do not lend approved CCIA RFID tags to other producers. Do not use approved CCIA RFID tags that have not been issued to your CLTS database account.

Do not age verify approved CCIA RFID tags before applying the tags to animals.

Do not giveaway or bequeath your unused approved CCIA RFID tags to other producers (e.g., single tags or an open package of tags). IF YOU DO, record the numbers and contact CCIA toll-free at 1-877-909-2333 to have the tags transferred to the correct account in the database by completing a QUICK and EASY producer-to-producer transfer form.

Need tags... We’re it !

QUICK AND EASY-TO-USE

It takes 5 minutes to activate a web store account, choose and order from the full array of approved tags, and have the tags shipped to an address of your choice 3-5 five business days later !

ACTIVATE your WEB STORE ACCOUNT to order tags online: 1.

2.

3.

4.

At http://tags.canadaid.ca, click Place an Order for producers.

The login page will appear, click Register – Create your Access Codes.

Enter your CLTS account ID and telephone number, then click AutoFill.

If you receive a notice indicating your account cannot be found, please contact us to confirm your account information or have your information entered into the tag order database to set-up your tag order account.

5. If your account can be found, your address will appear and you will have the opportunity to enter your user information. Once entered, click Submit.

6. The home page will appear with your tag order account information located on the right hand corner of the page. Go ahead and place your order !

24 HR

ONLINE ORDERING SAVE TIME & MONEY

 seedsto c k

By Debbie Furber

Lowlines offer docility plus feed efficiency and small carcass size.

Little Cattle with a Mission

Lowline cattle are for beef, not for show

G

o ahead. Ask Lowline breeders what their small-size cattle are good for.

They won’t be offended.

When we asked, the breeders put docility and feed efficiency at the top of their list of useful characteristics. Many sell beef directly to consumers and say there’s no better testimony to quality and taste than repeat customers.

The first thing they’ll set straight is that the breed is 100 per cent Black Angus genetics. No gimmicks. No dwarfism gene. No “miniature” involved — just pure Angus in a compact package.

Lowline cows stand 38-44 inches high and weigh 650 to 1,100 pounds. Bulls stand 39 to 49 inches high and weigh 1,100 to 1,400 pounds with older bulls reaching 1,600 pounds.

All registered Canadian and American Lowlines are DNA tested for parentage and verification back to the Australian foundation herd at Trangie Research Centre. In 1929, the centre imported some Angus cattle from the Glencamock herd at Brandon, Man., to start a purebred Angus program for the purpose of selling quality breeding stock to producers. The herd was closed in the mid-1960s when the focus turned to research on performance testing leading into

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a 19-year project to evaluate how selection for growth rate would affect efficiency of converting grass to meat. One herd of Angus cattle was established to select for high yearling growth rate (high line), another to select for low yearling growth rate (low line) and a third as the control. On the whole, the high line proved to be slightly more efficient than the low line at converting grass to meat, but the conversion ratios for the majority of individuals in the low line were similar to those in the high line. The low line’s advantage was its smaller body size; therefore, lower feed intake, and, in turn, higher stocking rates that ultimately yielded more beef per acre.

The Australian Lowline Cattle Association was formed the same day as the auction to disperse the herd after the research program ended in 1992. Four years later, six Lowline cows were imported to Canada for an embryo transfer program based in Alberta. The Canadian Lowline Cattle Association was formed that year and in 1998 Agriculture Canada recognized Lowline as a distinct breed.

Easy to handle; easy to like

Brian and Brenda Chicoine of BM Lowlines, at Storthoaks in Saskatchewan’s far southeast, got their start in Lowlines 17

years ago when they were seriously contemplating their future in cattle, which had numbered as many as 400 exotic-cross cows at times. Both had off-farm jobs and the big cattle proved to be more than Brenda had bargained for on her own.

Around the same time, an incident involving cattle on a nearby farm had severely injured the owner.

“Once we found out how nice and easy to handle these cattle were, it didn’t take long.

Within a year and a half we were very happy and made the decision to change over,” Brian says. “Raising the big cattle and Lowlines side by side, we could see for ourselves how much less feed it took to raise a calf to maturity or slaughter. We learned you get more beef for your buck with Lowlines.”

Today, they run 60 registered fullblood females and 30 percentage cows.

The decision had implications for their end market as well because the big cows weaned 800-pound calves, whereas the fullblood Lowline calves weighed around half that.

Their freezer beef market evolved with all percentage calves going into a 75-day finishing program. Their taste preference is for grain-fed beef, so the calves receive a homegrown oat-barley grain mix with free-choice hay from May into July. They finish out at 800 to 900 pounds at 15 to 17 months of age, yielding 500- to 600pound carcasses.

Diana Lillefloren of Idaho Lowline Cattle Co. at Hayden, Idaho, says she can’t keep enough Lowline beef on hand to keep up with customer demand. She got into Lowlines in 2009 after learning about their quiet nature and feed efficiency. They’ve proven out on both counts, with feed cost being about half that of her Angus cows.

Katherine and Darren Wise of Tunk Mountain Ranch, near Omak, Washington, owe their start in the beef business three years ago to Lowline cattle. They were looking for some type of livestock to raise on the 120-acre farm they had purchased and were first drawn to Lowlines because of the breed’s docile nature. They purchased three bred cows and a bull and have built the herd up to 17 animals without one birthing problem.

Commercial conveniences

Russ and Linda Crawford of Highpoint Lowlines near Victoria, B.C., have seen their operation evolve from a hobby farm with a few Angus cattle to include a Lowline bull and cow with heifer calf at side purchased Continued on page 24

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Continued from page 22

in 2009, to today’s 70 fullblood and 20 percentage Lowline females. In addition to selling semen, embryos and breeding stock, they do a brisk business in freezer beef, pepperoni, sausages and beef jerky.

“Lowline is a breed that can help commercial guys,” Russ says. Their bull customers appreciate the calving ease, especially for heifers. They like that they can downsize their cow herd in one cross using Lowline bulls, thereby reducing feed requirements and cost in short order. Meat quality and the smaller portion size are important for commercial customers who farm-gate beef.

He says Lowline cattle are reminiscent of the original Angus cattle of the sixties. In their grass-fed operation, the cows mature at 900 to 1,000 pounds and the bulls at 1,200 to 1,700 pounds. The percentage calves wean off at around 580 to 650 pounds.

In the Shields Valley near Wilsall, Montana, Karen and David Shockey of Muddy Creek Ranch run a 200-head grass-fed natural-beef operation supplying packaged beef for their own customers and a restaurant at Wilsall, a handful of high-end restaurants at Bozeman, the school district and some retail stores.

The calm temperament, calving ease, hardy calves and feed efficiency of Lowlines are bonuses in their operation, Karen says.

Her late father’s initial reason for introducing Lowline cattle into their Angus-based breeding program in 2004 was to get more primals per acre.

Using Lowline bulls on the Angus cows has reduced cow size and they find they can graze 10 Lowlines for every six regular-sized Angus cows on the same number of acres, even though they had been selecting their Angus genetics for performance in a grassfed program.

24

C at t l e m e n · N o v e m b e r 2 0 1 4

Calves of half-blood heifers bred Galloway were near as big as their dams by September

“We also needed the ability to grass finish steers at 18 months that would meet all our criteria,” she explains. The target is at least 60 per cent in the choice grade. The Angus calves couldn’t finish in one winter and they found that holding them the full two years changed the flavour of the beef more toward the gamey side.

Up to 120 head a year are processed at the state’s only USDA-approved plant, which designates three selected harvest dates to process Muddy Creek Ranch cattle only.

All 170 commercial Angus and Lowlineinfluence cows are bred Lowline. The crossbred calves weigh 55 to 75 pounds at birth, finish out by 18 months and yield 550- to 600-pound carcasses — big enough to be profitable without compromising quality.

Brian Walters, Walters Land and Cattle Co., at Fort Lupton, Colorado, and partner with the Shockeys in Foundation Beef Sires, has collected data over seven years comparing commercial cattle to Lowline-influence cattle in his grain-fed operation.

Eye on the future

Back in Saskatchewan’s northwest, near Edam, Cathy and Lee Monteith operate Honeybrook Lowlines alongside their beekeeping operation.

They were seriously considering getting

out of cattle altogether five years ago when they found a small Lowline herd in Alberta for sale and purchased six females. The small size and docility of the Lowline breed were exactly what they were looking for to encourage involvement of their children, James and Melissa, who found the full-size Angus cattle too intimidating. The family now has 18 fullblood females and three fullblood bulls along with some commercial Angus and Galloway cattle.

True to testimony, they’ve found their Lowline cows to be easy calvers with good milking ability that deliver hardy 40- to 50-pound calves.

The fullblood cows weigh 850 to 1,000 pounds, which keeps feed costs down, yet the calves wean off around 450 to 500 pounds. Pound for pound this is a higher percentage of cow weight than the calves off the 1,300-pound cows, Cathy says.

They can attest to the breed’s claim of high rib-eye area per hundredweight with one of their bull calves having an 11.72-squareinch rib-eye area at 800 pounds. The optimum rib-eye area for finished beef regardless of breed is 11 to 15 square inches.

This is the first year they’ve used fullblood Lowline bulls on their commercial cows and those calves weighed 500 to 600 pounds at five months of age, she adds. The half-blood Lowline heifers bred back to a Galloway bull had no calving issues and the calves were nearly as big as their mothers by early September.

Prospects for the breed’s future look promising, especially with the shift toward smaller-framed cows and interest in backgrounding and finishing calves on grass, says Lee, who is the association’s general manager.

The breed won’t be able to host a show at Agribition this year, but the national show is running as usual during Farm Fair International at Edmonton.

The association now has members from coast to coast. Find out more about them and Lowlines at www.canadianlowline.com. c

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 COVER STO RY · m a nag e m e n t

By Debbie Furber

Making the most of every opportunity

That’s how the Betcker family has expanded their operation in the past decade

They now crop 4,700 acres, background 8,000 head in four feedlots and run a 450-head cow-calf herd

26

W

hat a difference a decade has made for Brad and Lisa Betcker and family, Tanner and Morgan, who operate T Bar Cattle Co. just south of Medicine Hat, Alta. They’ve expanded from a cow-calf ranch near Elkwater, secure with steady income from Brad’s job with the county there, into the risky realm of cattle feeding and cropping.

The Cypress Hills surrounding Elkwater, southeast of the city, was perfect for their 150- to 170-head cow herd, with a quarter of land for hay and a few acres of oats and lease land for grazing.

They had ventured into grain farming, buying a quarter of irrigated cropland near Seven Persons, so they jumped at the chance when three quarters in the same vicinity came up for rent in 2002.

Their entry into the cattle feeding business was rather coincidental because the land happened to have a feedlot attached and the owner convinced them to give it a try.

They started with 1,200 feeders that fall and despite BSE-related market issues in spring 2003, bumped it up to 1,700 that year. Another opportunity to expand came along the follow-

C at t l e m e n · n o v e m b e r 2 0 1 4

ing year when a neighbouring 2,500-head feedlot came up for rent.

It was a sharp learning curve going from cowcalf to feeding and they were fortunate to be able to hire an experienced manager who taught them a lot, Brad says.

The year 2005 brought significant change. By then, they had hired three people to help out, so Brad retired from nearly 20 years driving the grader. They bought out his brother and made the move from Elkwater to their new home base with a 4,000-head lot near Medicine Hat. The landmark cactus statue along Highway 3 marking the former Cactus Feeders operation still points the way to T Bar Cattle Co. They topped that off by renting another 1,500head lot and found themselves feeding 8,000 head in total at the four lots within a two-mile radius.

All the while they continued to buy and rent to build their land base to today’s 2,300 acres of irrigated fields and 2,500 acres for dryland farming, growing canola, wheat, silage corn and alfalfa for their operation and export through Green Prairie International at Lethbridge.

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management

They tried running yearlings on the grazing reserve near Elkwater, but found that the gains on the rough fescue grass at that elevation, some 4,500 feet above sea level, weren’t as good as they should be. They were only getting 70 to 90 pounds of gain over the summer when they could get double that on the lower shortgrass prairie. Marketing was a big challenge, too, when it came to riding 40 miles of fence to gather yearlings out of the bush a few at a time, whereas, a couple of hours rounding up pairs and they’d be done.

What goes around comes around and with opportunities on the cow-calf side looking up, they’ve been expanding the herd over the past three years to today’s 450 head.

The cows winter on the feedlot quarter, calve starting April 20, move to crested wheatgrass pasture north of the city near Hilda, and spend the summer on pasture at the Elkwater ranch and community pastures running south to the American border.

They agree that diversifying to mitigate risk is one thing, but keeping up with everything is another matter.

They’ve consolidated the feedlot operation at the home place where they’ll usually feed 500 to 600 calves of their own and regular custom clients keep the pens full. After finishing out calves for two years turned out to be a losing proposition, they’ve been concentrating on backgrounding feeders from fall through spring, then letting the lot sit empty during the hectic summer months.

The expansion wouldn’t have been possible without help from their kids, steady employees and support from many of their custom clients who have a lot of experience feeding cattle.

Lisa says they feel fortunate that Tanner, 23, is interested in keeping the farm going and now farms with them full-time. He’s the go-to guy for anything that needs to be done from field operations to riding pastures and pens. Morgan, 20, works in the city and plans on furthering her education, but helps out with whatever she can including banking and public relations.

They are fortunate, too, to have five dedicated employees from the local area who have been with them for three to 10 years.

The Betckers offer competitive wages, but feel that their employees also value the opportunity to specialize in their own interests as far as possible, though everyone pulls together to get the jobs done in order.

ment for people comfort and timely processing in all kind’s of weather.

Computerizing management records has been another great addition, Lisa says. On arrival, each animal’s identification number is scanned into the group with a handheld reader that inputs information directly into the scale head. Whenever an animal is processed or receives a treatment, details are immediately added to its individual record.

Treating all calves with Draxxin on arrival has been a huge time and expense saver because it takes the stress out of pen checking and reduces the cost of treating sick animals and death losses in the long run.

“It’s amazing really, because the calves don’t get sick for 14 days and they go onto feed the first day,” Brad says. “We get a lot in from Manitoba, so it can be a long trip and quite a few days if they go through a market and buying station. Our death loss has dropped to 0.70 per cent overall and our gains have improved.”

Another feature of the computerized system that he appreciates is not having to eyesort cattle at sale time because the calves are weight-sorted into pens at implanting. The system computes average daily gain, so it’s easy to monitor the rate of gain and adjust the ration or marketing plan accordingly.

They’ve largely switched from alfalfa to corn for silage since first trying corn in 2003 because they get double the tonnage (18 to 22 tons per acre) and have been able to halve the amount of barley grain in the ration with corn silage.

The new BrettYoung variety, Venza, is showing great potential because it stays green for as long as two weeks after the first frost, giving them some wiggle room to get it put up before it dries down too much.

Growing a Roundup Ready corn in rotation with a Liberty Link canola on irrigated land has been a good rotation for keeping fields clean. Fall-applied manure is consistently adding 15 bushels per acre to canola yields when seeded with fertilizer applied at the regular rate in spring.

To introduce a legume into the rotation, they are trying peas for the first time this year and researching possibilities for Roundup Ready soybeans now that a few farms in the area are trying the crop and nearby Paterson Grain is buying it. Sugar beets and potatoes are also grown in the region but have to be sold on contract and those are full.

Another time saver has been switchContinued on page 28

Tried, tested and true

On the cattle side, they’ve built a processing barn, which has been well worth the investwww.canadiancattlemen.ca

Son Tanner is the go-to guy for anything from field operations to riding pastures and pens.

C at t l e m e n · n o v e m b e r 2 0 1 4

27

m anagement

Continued from page 27

ing from round bales to big square bales.

The change was initially made to facilitate alfalfa hay sales to Green Prairie for overseas shipments.

They’ve found that the square bales and balers have several advantages over the round bale system. Square bales are easier to handle and they can haul about 10 tons more on each load. The square baler handles short straw lengths from their rotary combine and on a good day they can put up 1,000 more bales than they used to with the round baler because they don’t have to shut down when the straw gets over-dry and there’s no stopping to tie and drop bales.

They also invested in a Haybuster 2800 bale processor that handles squares equally as well as rounds.

The silage trailer on a 34-foot tandem axle is one of several pieces built by an employee who has a talent for mechanical work and fabricating equipment.

As for marketing, custom clients look after their own arrangements. Working with them to ready cattle for shipment to

U.S. lots has been an interesting exercise in perfection when it comes to complying with all of the regulatory requirements.

They sell most of their own cattle through local order buyers, but have found TEAM (the electronic auction market) to be a good option. “You can take a stab at it and if you don’t like the price you can always say no. You sell right out of the feedlot FOB and can pick your time,” Brad says.

They will be using the Western Livestock Price Insurance Program (former Cattle Price Insurance Program in Alberta) for the first time this year. It’s a fair program from what they’ve heard from their customers who use it and they like how it works to leave the top end open and have the bottom end covered. This year’s lofty prices make it an opportune time for feeders to buy insurance because if the market drops they’ll have money at the top end and be able to buy in at the lower end.

One opportunity begets another. If opportunities slip by there’s no knowing what might have been in the big picture. The Betckers want that picture to include a future in farming for themselves and their children. c

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C at t l e m e n · n o v e m b e r 2 0 1 4

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 researc h o n t h e r eco r d

By Reynold Bergen

Canada’s Beef Industry Supports Forage Research

A

competitive cow-calf sector requires an adequate supply of forage. Increasing forage quality and yield allows more cow-calf pairs to be maintained per acre of forage, or reduces the number of forage acres needed to maintain the same number of cow-calf pairs.

Better yields come from the development of better varieties and production practices. Statistics Canada data indicate that canola yields have increased by 13.5 bushels per acre since 1980, while tame hay yields have dropped by more than half a ton per acre over the same time frame. This is partly related to differences in how the research and technology transfer is funded.

The 2011 Census of Agriculture reported that Canada had over 50 million acres in native or tame pasture, compared to 19 million acres in canola. In spite of this, there has been much more private investment in canola breeding and production research compared to forage. Many grass and legume stands are only reseeded every decade or two, so seed sales are limited and there is little incentive for private companies to invest in forage breeding and production research.

This lack of private investment has left Canada’s beef producers reliant on public (federal and provincial government and university) forage breeding and production research programs. These forage research programs have been declining in the same way as forage yields. A 2008 Canadian Cattlemen’s Association report entitled “Feed Grains and Forage Research and Commercialization in Canada” indicated that funding for forage research had dropped by 50 per cent between 1985 and 1998. Half of Canada’s forage researchers were lost during this time. By 2008, forage and range research, which stands to benefit 50 million acres of tame and native forage, received less funding than potato breeding programs aimed at improving Canada’s 350,000 acres of potatoes.

Before 2009 many beef industry groups weren’t funding forage research very heavily. Governments concluded that the beef industry lacked interest in forage research, and cut their support for forage research accordingly. For example, only 10 per cent of the Beef Cattle Research Council (BCRC) funds were allocated to forage research between 2006 and 2008. At the time, 6¢ of every National Checkoff dollar was directed to the BCRC to fund research. These extremely limited budgets meant that the BCRC was unable to support all of the important research that needed funding. Since then, Canada’s beef producers have become much more aware of the importance and value of research, and have increased the share of the National Checkoff dollar that is directed to research. At present, the BCRC receives nearly 16¢ of each dollar. This has allowed the BCRC to invest more

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industry funds in a broader range of research areas. Forage research has seen a considerable increase in funding.

The current Beef Science Cluster has allocated 30 per cent of funds to forage and environment research. This means that the BCRC is directing three times as much of its budget to forage research compared to when the CCA report first raised these issues in 2008. Dollar-wise, industry-directed investments in forage research have increased by nearly 10 times.

As mentioned earlier, governments sometimes take their funding cues from industry signals, so increased beef industry investments in forage research have encouraged governments to invest as well. Industry’s investments in forage research have helped to start reversing the loss of forage researchers. In late 2012, the Saskatchewan Forage Network was joined by the Saskatchewan Forage Council, Saskatchewan Cattlemen’s Association and Beef Cattle Research Council in an effort to get a new forage breeder hired at the University of Saskatchewan. The Saskatchewan Ministry of Agriculture agreed, and developed a new Ministry of Agriculture chair in forage crop breeding. Dr. Bill Biligetu was hired and started in the new role in May 2014.

The BCRC is particularly pleased about this, because Dr. Biligetu’s post-doctoral training at Agriculture and Agri-Food Canada’s Swift Current research station was funded under the first Beef Science Cluster. The current Beef Science Cluster is also funding a forage chair position at the University of Manitoba that has been staffed

by Dr. Emma McGeough.

Canada’s beef and forage industry has significantly increased its support for forage research in Canada, helped to create some new forage research positions at Canadian universities, and seen them staffed with young, enthusiastic new researchers. This is good news, but this job is far from complete. A number of highly regarded Canadian researchers are nearing retirement. Industry groups will need to work hard and work together to ensure that these positions are refilled, make sure that the new researchers have industry mentors to help them develop industry-oriented research and extension programs, and provide adequate funding to support their research.

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 the science director of the Beef Cattle Research Council.

C a t t l e m e n · N o v e m b e r 2 0 1 4 29

 Holistic R a nc hi ng

By Don Campbell

the danger in strong cattle prices

I

t may sound odd to suggest that there is a hidden danger in strong cattle prices. Perhaps there is a danger precisely because most producers don’t recognize that there is such a thing. I believe that there is a hidden danger. As responsible producers we need to recognize the danger and take steps to avoid it.

What is this hidden danger? It is that we will let our cost of production rise to match the higher prices. If we allow costs to rise, the potential profit and the benefits of higher prices will flow to someone else. It isn’t difficult to structure our businesses so that we have no more profit at the new higher price than we did at the old lower price. I think this is largely the history of the cattle business.

Let me suggest some safeguards that might help us as we move ahead. The first one is: the anticipated price for our products must not determine the cost of production. The past 10 years have been one of the most difficult times for the cow-calf producer in the last 50 or 60 years.

If you are still in the business I congratulate you. You must have done something right. In fact you have likely done many things right. You have learned some important cost-cutting ideas that have allowed you to stay in business. This is not the time to abandon these ideas. If they worked in the difficult times you can be confident that they will work even better in the good times. This is not the time to slack off in our management. The exact opposite is true. This is the time to bear down. Continue to be a low-cost producer. Use the good times to generate a profit and to create a low-cost, sustainable business. We are all being presented with a wonderful opportunity. By using it wisely we may be able to build a solid business that will last for generations.

In HM we define profit as an increase in net worth.

This increase is measured while we hold our long-term assets (land and cows) at a relatively low constant value.

By measuring profit in this manner we can be sure that when our net worth increases we have more assets, less debt or cash. We are not just measuring the inflation of our cows and land. Profit is defined as a return on your investment (the value of your business) and a return to your management skills. Profit is calculated after your living expenses have been paid.

Profit must be planned for. It will not happen automatically. Let’s look at some real numbers and see what has happened to income for the cow-calf sector in the last year.

For this example I will use 200 cows, a 90 per cent weaning rate and a calf weight of 500 pounds. We will retain 40 heifers and sell 40 cull cows with a weight of 1,300 pounds. I have used Canfax prices for calves in October for 2013 and cow prices for midsummer in 2013 and 2014. I have used current prices for the 2014 calves. This is just an example.

It is realistic but not detailed. To get the real benefit from these ideas use your own numbers.

30

C at t l e m e n · N o v e m b e r 2 0 1 4

2013 INCOME Weight

Price

500 lb. steers

$1.69

$ per head $845

# of head 90

$ per herd $76,050

500 lb. heifers

$1.45

$725

50

$36,250

1,300 lb. cows

$.79

$1,027

40

$41,080

Total

$153,380 2014 INCOME

Weight

Price

$ per head

# of head

$ per herd

500 lb. steers

$2.90

$1,450

90

$130,500

500 lb. heifers

$2.67

$1,335

50

$66,750

1,300 lb. cows

$1.15

$1,495

40

$59,800

Total

$257,050 SUMMARY

Increased Income

% Increase

Increase per cow

$103,670

68%

$518

No matter how you measure things we have experienced a significant increase in income. For most of us the present increase in prices will be a once-in-a-lifetime opportunity.

It deserves to be managed carefully. If we squander this opportunity we are not likely to have another chance.

One of the tools we use to help us be profitable in HM is to pay ourselves first. Basically this means that we set the profit we desire at the beginning of the year.

We then use our creativity and planning ability to make it happen. Let’s look a little closer at our example ranch.

Last year’s income was $153,380. Times have been challenging. Let’s say we tried our best last year but only generated a profit of $5,000. Now as we look ahead we realize that our income this year will increase by $103,670. If we are disciplined and hold our expenses to the same level as last year we will generate a profit of $108,670. Our reaction may be: “Wow, I’ve never made this kind of money. Is this really possible?” The answer is a resounding “Yes”; all it requires is discipline and planning. You can achieve this.

If you are serious about profit now is the time to plan for one. Since profit is an increase in net worth you will be able to hold your profit as an increase in assets, a decrease in liabilities or cash. The best way to hold your profit will vary from farm to farm. A close look at your goals will aid you in this decision.

We are all being presented with a golden opportunity.

I urge you to seize it. Make profit a way of life. Plan for a profit every year. I wish you success. Happy trails. c Don Campbell ranches with his family at Meadow Lake, Sask., and teaches Holistic Management courses. He can be reached at 306-236-6088 or doncampbell@sasktel.net.

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 marketi ng

By Melanie Epp

From birth to beef: the story of Buis Beef

L

ike most producers coming out of BSE, Joanne and Mike Buis knew they had to make changes to their feedlot operation. As third-generation farmers, the couple and their families have been raising beef in Chatham-Kent for over 75 years. Over the years, though, the operation has seen significant change.

“To make cow-calf work in this area is a bit of a challenge,” says Mike Buis. “We needed a system that would work as a whole system.

“When we started out we were strictly a feedlot and we’d been a feedlot for quite a few years. When BSE hit, we had to do something to stay in business. It just wasn’t going to work to continue with the feedlot the way we were doing it,” he continues. “We thought if we could at least raise our own calves then we could have the quality calves that we wanted and we could make everything work by being a little more vertically integrated.”

Mike and Joanne had never calved a cow in their life. “We started with 100 cows, put them in the feedlot pen and started calving,” says Buis. “Well, you can imagine how that went, trying to calve in a feedlot pen. It just wasn’t going to work.”

After some discussion, they decided to move the cows outside.

“And then we went to the cover-crop grazing and calving in the field at the same time,” he says. “That’s the best of both worlds.”

Although they were happy with the way both the calving and the feedlot were going, they weren’t happy with the price they were getting for the quality cattle they were producing. “That’s when we opened up the store and started retailing on-farm,” he says.

Full-circle farming

Buis Beef raises 325 to 350 Red and Black Angus cows on 700 acres of land in Chatham-Kent. They’re one of the last cattle-raising families in the region, as land values are too high to justify using the acreage for grazing. Their system is a unique one, as they pasture-raise cattle through the winter, and keep them in a dry lot in the summer. Cows are naturally bred using Simmental bulls from Marywood Breeders Group in Ontario. The cows either have Western-based genetics or are from herds that have been raised in year-round outdoor conditions, which makes them ideal candidates for outdoor living during the sometimes harsh Canadian winters.

“We spend the money on good bulls,” says Buis. “We like their meat quality, and that’s where you can make the biggest change to the final product.”

The bulls they choose need to be easy calving, since nearly 100 per cent of their cows calve on their own. Calving, he says, is easier in the field, and over the years they’ve found that those born outside get a stronger start than those born in the barn.

The Buises grow some 700 acres of cash crop, including corn and soybeans, in a no-till/minimum-till system. Cover crops — for the

32

C at t l e m e n · N o v e m b e r 2 0 1 4

Joanne and Mike Buis

most part, cereal rye and winter barley — are seeded in the fall and provide feed for the herd through the winter.

Currently, Buis Beef butchers an average of two cows per week, although sometimes as many as four. “Steaks obviously go quicker in the summer,” says Buis. “And roasts in the winter.”

Using ultrasound technology at finishing

How animals are selected for butchering is also a bit different. Mike and Joanne use ultrasound to determine the best marketing dates for their cattle. They also use it to select which animals will be sold onfarm and which will be sold on the market. In this way ultrasound not only helps them select the beef for their customers, it also reduces feeding costs and other inefficiencies.

The ultrasound measures carcass characteristics like rib-eye area, back-fat thickness and overall marbling. Based on the readings, a program calculates when the animal is at its peak. Feeding it beyond that point just produces excess fat, which reduces its value. Buis has been evaluating carcasses using the naked eye for a long time now. When he first implemented the ultrasound technology, he second-guessed it and made choices based on what he saw rather than what the system had calculated. He admits that he was wrong in doing that.

“It’s scary accurate,” he says. “Like if you predict an animal, say, 83 days from today, it is within a pound or two on carcass weight. It’s really, really accurate.”

“For us, it just makes sense. We know before we sell an animal

www.canadiancattlemen.ca

marketing

where it should go, where we can get the maximum dollars for each animal,” he continues. “That’s valuable information.”

While some of the beef they raise is sold on-farm, the rest goes to VG Meats in Simcoe. Not only does VG Meats pay a premium on tenderness, they also discount on over-fat carcasses, making the ultrasound system useful in more ways than one.

“We don’t want to put the fat on. That’s where it costs you money.

Once you get an animal finished, you’re wasting money feeding it longer, so why would we do it?” he asks. “We want to make sure that it’s finished. This is the best it’s going to be. Let’s send it out.”

Farm to freezer traceability

Part of what keeps Buis Beef ’s customers coming back is its traceability system. The system, bioLinks, uses barcodes developed for an iPhone or iPod to manage inventory, pricing, and tracking sales.

Using the management system in conjunction with bioLinks, beef can be traced to the farm where it was raised. It also tracks health

records, tag numbers and an animal’s genetics. Buis says having a traceability system in place gives his customers peace of mind.

What’s next for Buis Beef?

To date, Buis says they’ve only used back-fat thickness and overall marbling from the ultrasound in the management of their operation. Now they are looking at ways to make use of the rib-eye data.

“If we can start to make the differentiation and pick those ones that have the nice, big rib-eyes, then we’ll have the answer,” he says. “We’re completely vertically integrated from birth to beef, so we can make decisions on the production side that will impact our retail end tremendously. It’s just a matter of being able to measure and to make decisions based on those measurements that makes the difference.”

Mike and Joanne Buis are winners of the 2010 Premier’s award for innovation. The couple has seven children ranging in age from 12 to 31. Their retail store is open Thursday to Saturday each week. For more information, visit www.buisbeef.ca. c

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C at t l e m e n · N o v e m b e r 2 0 1 4

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BUILDING TRUST IN CANADIAN BEEF

ONTARIO PRODUCERS TEST DRIVE NEW ANIMAL CARE CODE Veterinarians lead innovative hands-on workshops

Ontario beef producers are getting a jump on learning the new Beef Code of Practice. Across the province a series of innovative workshops are giving producers a look at the code in action.

Dan Ferguson, manager of producer relations for the Beef Farmers of Ontario says the idea was to engage producers. “We didn’t want the code sitting in a box somewhere. We wanted producers to understand what it was and how it would fit into their management.”

The bulk of the province will soon have been covered with workshops, he says and the response has been gratifying. He believes the approach provides useful knowledge about how producers will respond to expanding the Verified Beef Production program to modules including animal care.

REAL-WORLD EXPERIENCE

Workshops are held on a farm.

“Producers like the idea of going somewhere they are comfortable,” says Ferguson. “We work with the local county association to make it a bit of a social setting, a chance to visit. We pick a veterinarian who is good at presentations to actually run animals into a headgate and demonstrate proper techniques.

“Farmers get to ask questions directly and see techniques first hand.

Hopefully that means they will relate to the code as a management tool.”

LESSONS FROM THE CODE

Producers have a range of understanding on the new code. “Some have it figured out and are there to see how their association is explaining it,” says Ferguson. “But you can see some people thinking, ‘So somebody could actually come onto my farm and ask me about the new code and I’d have to show them and back up what I do with some sort of evidence?’’’

“We’re able to show them that’s where transparency is at in our business and if you are meeting the code there are no issues.”

There’s a myth-busting aspect to this as well. Some producers come in wondering about how invasive the code will be. But they get to see that much of it is what good producers are already doing, and that it is not going to be an uncomfortable experience to implement.

Chute-side demonstrations hosted by Beef Farmers of Ontario help demonstrate responsible animal care practices.

LESSONS FROM OTHER INDUSTRIES

Ontario has a smaller herd size compared to some provinces so many producers have other jobs.

It’s interesting to see that many producers have experience with codes and standards in their other jobs, says Ferguson. So they are often more prepared to accept and work with production requirements in the beef business.

“One result of living in the shadow of Toronto is producers are close to the consumer. They know people drive down country roads, see something happening they may not understand that the farmer may have to explain.”

FUTURE PROMISE

One important lesson from these workshops is that producers will stand up for their industry. If someone questions the need for management standards, it is often that another producer will stand up and explain why it is needed.

“It’s why we want to keep these learning channels with producers open,” says Ferguson.

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 prime cuts

By Steve Kay

Working for the industry

T

he World Trade Organization (WTO) will likely have publicly released its ruling on COOL by the time you read this. All parties privately received the ruling at the end of July and the strong suggestions are that the WTO ruled in favour of Canada and Mexico on all but one count. The U.S. is expected to have 60 days after the public release to take action that would bring the U.S into compliance with its WTO obligations and satisfy Canada and Mexico.

Both countries have released lists of a wide variety of U.S. products, some agricultural, that would be subject to retaliatory tariffs allowed under WTO rules should the U.S. remain out of compliance. These tariffs could total more than US $1.5 billion annually. This might spur Congress to implement a legislative change to the COOL law which was enacted in 2002. But the outcome of the November elections might complicate this process.

The biggest issue remains the cost of segregating foreign-born cattle and hogs in order to comply with the current COOL rule. Both Canada and Mexico say this costs their livestock industries millions of dollars per week in lost value and volume. COOLrelated losses to Mexican calf exporters are estimated to be US $80-90 per head, compounded by a reduction in export sales, Mexico’s Assistant Trade Secretary Francisco de Rosenzweig said in September. During the four years running up to COOL’s implementation, Mexican cattle exports to the U.S. averaged 1.2 million head per year but by 2013 had dropped to 647,000 head, he said.

Both Mexican and Canadian exports to the U.S. have increased this year. For the year to October 4, Mexican exports totalled 720,021 head, versus 626, 263 head for the same period last year. Exports from Canada for the year to September 29 totalled 842,272 head, versus 751,723 head, largely because of an 80,706 head increase yearon-year to feeder cattle exports.

Both year-on-year increases reflect the record-high fed and feeder cattle prices in the U.S. and the shrinking U.S. cattle herd. Next January’s annual cattle inventory by USDA will likely show a slight increase in cattle

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numbers for the first time since 2006. Overall cow slaughter so far this year is down 14 per cent on last year, with beef cow slaughter down 17 per cent and dairy cow slaughter down 11 per cent. Fed heifer slaughter is down eight per cent, indicating that cow-calf producers are rebuilding their herds by keeping back cows and retaining more heifers.

Any net heifer retention will mean even fewer heifers available for feeding in 2015.

So the price of feedlot replacement cattle will remain at record high levels, barring an external crisis. So 2015 will be a banner year for Canadian and Mexican cattle producers who send their cattle to the U.S. This, though, will put pressure on feedlots and processing plants in both countries. The North American battle for cattle will continue.

ne can only hope the O U.S. Congress will see the retaliatory writing on the wall and act to legislatively fix COOL

As for the COOL battle, one can only hope that the U.S. Congress will see the retaliatory writing on the wall and act legislatively to fix COOL once and for all.

Canada and Mexico will likely demand such a solution. Both Canada and Mexico are said to dislike a proposal to attach a “Product of North America” label on all fresh meat. Any legislative fix, though, might be complicated by the mid-term elections. Such a fix might come in the current lame-duck session of Congress and might be part of an omnibus spending agreement. But should the Republican Party gain control of the Senate, the lameduck session might be short, which might push any congressional action on COOL into 2015. c A North American view of the meat industry.

Steve Kay is publisher and editor of Cattle Buyers Weekly.

Nov. 26 - National Jr Gelbvieh Show, Agribition, Regina, SK Nov. 26 - National Gelbvieh Show & Sweetheart Classic, Agribition,Regina, SK Nov. 27 - National Gelbvieh Sale, Agribition, Regina, SK Dec. 5-6 - Canadian People’s Choice Bull Futurity, Red Deer, AB Dec. 6 - Commercial Pen Show & Wish List Gelbvieh Sale, Red Deer, AB Dec. 13 - Prairie Gelbvieh Alliance 14th Annual Female Sale, Moose Jaw, SK

2015

Feb. 14 - Prairie Hills Gelbvieh ‘Power on the Prairie Sale,’ at the Ranch, Gladstone, ND Feb. 25 - 6th Annual Beck McCoy Bull Sale, Beck Farms Sale Barn, Regina, SK Mar. 7 - Davidson Gelbvieh & Lonesome Dove Ranch 26th Annual Bull Sale, at their bull yards, Ponteix, SK Mar. 9 - Severtson Land & Cattle Bull Sale, at the ranch, Red Deer County, AB Mar. 10 - Gelbvieh Stock Exchange Sale, Medicine Hat Feeding Company, Medicine Hat, AB Mar. 14 - Foursquare 8th Annual Bull Sale, Olds Cow Palace, Olds, AB Mar. 16 - Twin Bridge Farms & Guests Bull Sale, Silver Sage Community Corral, Brooks, AB Mar. 21 - Gelbvieh Advantage Bull Sale, Innisfail, AB Mar. 21 - Saskatoon Gelbvieh Bull & Female Sale, Saskatoon, SK Mar. 29 - Best of the Breeds Bull Sale, Leross, SK Apr. 4 - Prairie Gelbvieh Alliance Bull Sale, Johnstone Auction Mart, Moose Jaw, SK

CANADIAN GELBVIEH ASSOCIATION 403.250.8640 gelbvieh@gelbvieh.ca www.gelbvieh.ca

C a t t l e m e n · N o v e m b e r 2 0 1 4 35

 vet aDv i c e

BACK TO BASICS WITH BRD

C

omplacency is always an enemy. And nowhere in the beef business does complacency sit more steely and imperfectly than when managing calves as they move from pasture to market. With 2014 witnessing weaned calves topping $1,800, production shortcuts will abound in the rush to get them sold. Producers will be tempted to sidestep good management practices, anxious to see semi-trailers disappear en route to auction. In the end, fall traditions will prevail, making calf health someone else’s worry.

Bovine respiratory disease (BRD) remains one of the major diseases causing losses in weaned calves placed into feedlots. BRD accounts for 65 to 80 per cent of the sickness in some feedlots and between 45 and 75 per cent of the death loss experienced in many lots. What BRD costs the North American beef industry is difficult to estimate, but probably lies between US$600 and $750 million annually.

Although the modern beef industry has come a long way in understanding BRD, particularly the environmental and genetic factors associated with respiratory infections, and in developing better vaccines, treatments, diagnostics and management practices, several speakers at the July 2014 BRD Symposium in Denver, Colorado, pointed out, “We must do better.”

Yet despite apparent progress, little has changed. Regardless of advancements in knowledge and technology associated with BRD there has been no significant reduction in its incidence. Feedlot managers readily admit that despite increased investment in treatment and disease prevention protocols in their individual businesses, mortality has not improved. In the view of several Alberta feedlot operators, “Although the mix of diseases in the ‘dead pile’ has changed and the cost of preventing cattle from getting there has increased, mortality today is just as high as it was 20 years ago!”

Throughout the conference, presenters outlined research into new technologies and management systems for combating BRD: high-powered things like genomic-enhanced selection, pharmacogenomics for development of targeted vaccines, and treatments and new diagnostic tools including rapid laboratory analysis, onfarm respiratory scoring, electronic behaviour monitoring and the Whisper electronic stethoscope system.

While new technology holds great promise in the fight against BRD, it also became clear the industry could significantly reduce losses by getting back to basics. It was also noted that veterinarians have a key role to play in helping clients re-examine time-tested practices.

Good nutrition for the pregnant cow and maintaining her body condition through gestation is fundamental for high-quality colostrum and long-term immunity for the newborn calf. Healthy calves — early in life — translate into improved weaning weights and better performance as they are placed in feedlots later in the fall.

Optimum body condition has a great deal to do with reproductive performance and reproductive momentum of beef cows and their heifer replacements. Low-stress weaning practices help minimize a calf’s vulnerability to disease, and builds behaviour patterns that permit calves to reveal, rather than hide, early signs of sickness.

Numerous studies have shown a sound preconditioning program incorporating nutrition, planned vaccination protocols and on-farm

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C at t l e m e n · N o v e m b e r 2 0 1 4

weaning for at least 30 days — 45 days is better — can dramatically reduce risk of BRD in calves shipped to feedlots or background operations.

The question then becomes: “Why aren’t more background operations and feedlots stocked full of low-risk preconditioned calves?”

The answer involves perceptions and economics, says Purdue University veterinarian Mark Hilton. Some cow-calf producers still see preconditioning as a cost, and have not recognized the economic returns generated by premiums. On the buyers’ side, some cattle feeders continue to look for calves they perceive as steeply discounted, recognizing that the highest potential rate of return is often associated with “high risk” BRD scenarios. Under these conditions, a high disease incidence becomes a cost of doing business.

Hilton believes some portion of the background and feeding sector will continue to take chances on cheaper, high-risk calves if they are available, so the focus should be on educating cow-calf producers on the benefits of early prevention and preconditioning. He suggests that instead of just discussing the buyer-dependent “preconditioning bonus,” veterinarians and the industry should highlight the profit from additional pounds sold and returns per hour for the cow-calf enterprise, which are seller-dependent. In our beef-cattle production system, animal health begins at the cow-calf level, and that, perhaps, is where the veterinarians can have the greatest impact on BRD. Several research projects have demonstrated that commingling from different farms at the auction market increased the risk of respiratory disease in calves following feedlot entry. Cow-calf producers in many cases could improve their ability to sell larger lots of uniform cattle through genetic selection and managing for shorter calving seasons.

Researchers at Iowa State University used a Disposition Scoring System to compare health and performance among docile, restless and aggressive cattle. During the entire feeding period, average daily gain was greatest in calves classified as docile, followed by the restless group and the aggressive group. Mortality rates were 1.09, 1.02 and 1.91 per cent, respectively, for docile, restless and aggressive cattle.

Economic return was $62.19 lower for aggressive cattle than for docile cattle in this study. Much of this difference was attributed to decreased death loss, increased ADG and improved carcass quality grade.

The reasons behind ongoing trends in BRD prevalence and why industry does not adjust are not readily apparent. During the Denver symposium, several important points were made. First, in spite of advancements, we have not seen any significant reduction in the incidence of BRD in feedlots. Genetic susceptibility, possibly through selection pressure on other production traits, probably plays a role. Then there is an obsolete marketing system, particularly for beef calves, that continues to include a risky combination of pathogen exposure and stress. And finally, the questions from those prepared to challenge our industry about animal care. Why do highrisk practices prevail? And why aren’t we doing better?

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

Are Mycotoxins Hiding in Your Feed Supply?

W

hen it comes to feed quality, we usually think in terms of nutritional properties such as energy, protein or mineral content. There are, however, other feed characteristics that have an impact on quality, one of which is mycotoxin contamination. Depending on crop type, environment, location, harvest and storage management, there are a wide variety of mycotoxins that can potentially contaminate the feed supply. Examples include ergot alkaloids in rye, deoxynivalenol in wheat and barley and alfatoxin in corn. These mycotoxins result from fungal infections of plants and develop as the plant matures and/or during storage. Symptoms of mycotoxin poisoning include decreased feed intake and growth, reduced milk production, and increased morbidity and mortality in calves as well as adult cattle.

Mycotoxin contaminated feed is not a new issue.

However, if we use the last few growing seasons as a yardstick, it appears that the extent of the problem is increasing, particularly for Central and Western Canada. The re-emergence of this issue has been attributed to a number of factors including favourable environmental conditions in the spring and the emergence of more aggressive fungal strains contaminating today’s crops. In the August 2014 issue of Canadian Cattlemen, Dr. Reynold Bergen addressed concerns with ergot. In this column, I will focus on fusarium contamination of wheat and other cereals and the implications for your feeding program.

Fusarium infection of wheat, barley and corn results in a plant disease known as fusarium head blight (FHB). This disease of cereals has been established in Central Canada for several decades and is slowly moving westward. This fall, for example, there are a numerous reports throughout Manitoba and Saskatchewan of FHB contamination of winter wheat, durum and Hard Red Spring wheat. In cereals such as wheat, FHB targets the seed head and results in shrunken, off-colour kernels, known as fusariumdamaged kernels (FDK) or more commonly “tombstones.” In corn it is sometimes referred to as pink ear rot. For the grain producer, crop yield, quality and end use can be negatively affected. For livestock producers, the issue is mycotoxin contamination.

Fusarium-damaged kernels can be contaminated with a number of mycotoxins that collectively are called the trichothecenes. Included in this group are deoxynivalenol (DON), nivalenol, T-2 and HT-2 toxins. The specific mycotoxin or combination of mycotoxins found in contaminated grain depends on the fusarium species that infected the plant. For example, infection by fusarium graminearum will result in the

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production of DON as well as a number of DON-like derivatives. Under certain conditions, it can also produce T-2 toxin.

Toxins such as T-2 and HT-2 are potent protein inhibitors whose ingestion at levels as low as one part per million (ppm) can result in issues with reduced feed intake, poor growth, ulceration and hemorrhaging of the digestive tract, and even death. Canadian Food Inspection Agency (CFIA) guidelines for cattle limit the intake of HT-2 toxin to 0.1 ppm while the recommended tolerance level for T-2 toxin is less than one ppm (DM basis).

Deoxynivalenol, while not as potent as T-2 or HT-2 toxin, is the most common mycotoxin encountered in fusarium-contaminated grain. Deoxynivalenol is commonly called vomitoxin due to the fact that pigs exhibit severe feed refusal and vomiting at very low levels of intake. Fortunately, cattle are less sensitive, likely due to degradation of DON by rumen bacteria. Reduced feed intake and growth and poor immune function are the major issues associated with feeding DONcontaminated grain to cattle. The upper dietary inclusion limit for DON is not as clear-cut as it is with other mycotoxins. The CFIA guideline for DON in the diet of beef cattle is a maximum of five ppm. For pregnant heifers or cows, this is a reasonable guideline. However, for growing and finishing cattle, it may be on the low side. A Manitoba Agriculture factsheet from the 1990s summarized a number of DON-related research trials which demonstrated that DON levels at nine ppm in backgrounding diets and as high as 18 ppm in finishing diets did not negatively influence growth, feed intake or feed efficiency.

One issue to consider when feeding DON-contaminated grain is that the presence of DON can be a warning sign that other mycotoxins are also present.

For example, I have seen test results from 2014 wheat samples that showed DON at 2.5 ppm and HT-2 toxin at 1.3 ppm. Similarly a wheat screening sample containing 11 ppm DON had a combined total of 2.5 ppm for HT-2 and T-2 toxins. Not a lot is known about the combined effects of these mycotoxins, in some cases they may act in a synergistic fashion increasing the negative effects of one or more of these mycotoxins. In such situations, caution is advised, even if one is blending the contaminated grain to “safe” levels.

There are a several laboratories that offer testing services for mycotoxins in grain and forage samples. If you suspect issues, have your feed tested prior to purchase and/or feeding. For larger operations receiving grain on a regular basis, work with your nutritionist to set up a purchasing protocol that sets limits to the level of ergot or fusarium contamination that you will accept. c

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

www.canadiancattlemen.ca

December 15, 2014

Spring Calving Dispersal

at the Farm Erskine, Alberta 12:00 Noon featuring the very best in red and white Charolais genetics

Over 200 head sell:

Heifer Calves ~ Bred Heifers Bred Cows ~ Bull Calves Herd Bulls

Attention Ranchers!

Terms are available on all the bull calves - one half purchase price sale day with a post dated cheque for the balance due April 1, 2015.

A wintering program is also available on the bull calves.

They will be semen checked prior to pick up or delivery.

For a catalogue contact: T Bar C CaTTlE CO. lTd. Or Sandan CharOlaiS FarMS George & Ursula Joy, Jill & Brian Corpataux P/F: 403.742.3337 - C: 403.741.6114 P.O. Box 397, Erskine, aB T0C 1G0 E: ucorpataux@xplornet.com

Sale Managed by:

Office - 306.933.4200 Chris Poley - 306.220.5006 Ted Serhienko - 306.221.2711 Shane Michelson - 403.363.9973 info@tbarc.com www.tbarc.com

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View the catalogue online at www.sandancharolais.com or www.buyagro.com 10/20/2014 4:03:13 PM

 manage m e n t

By Debbie Furber

STRAIGHT TALK ON STEROIDS

C

anada’s Beef Cattle Research Council (BCRC) has collected some interesting stats on the estrogen level in beef.

A 75-gram serving of beef from cattle treated with hormone implants contains two nanograms (ng ~ one billionth of a gram) of estrogen.

“A person would need to eat 3,000,000 hamburgers made with beef from implanted cattle to get as much estrogen as the average adult woman produces every day, or 50,000 hamburgers to get as much estrogen as the average adult man produces every day,” says BCRC’s science director, Dr. Reynold Bergen.

“Beef is a really excellent source of protein, zinc, iron and a lot of other essential nutrients. It’s a really poor source of hormones.”

Considering there are about 45,000 ng of estrogen in 75 grams of white bread, the bun probably has far more estrogen than the beef!

If you need an explanation to go with the stats, the short of it is that cattle, alongside people and all other animals and plants, naturally produce hormones that are vital to growth, development and health. That’s why meat and plants can never be hormone-free.

Some of those natural hormones are steroid hormones, which are nothing more than a class of hormones that have the distinct four-ring nuclei known as a steroid nucleus. The word “steroid” comes from cholesterol because the hormones are derived from cholesterol and transported in the bloodstream to do their work in other parts of the body.

Promoting beef as raised without the added use of hormones and steroids seems rather redundant as far as beef production goes, Bergen says.

The long of it

In mammals, steroid hormones are produced in the adrenal cortex, ovaries and testes.

Cortisol, primarily produced in the adrenal cortex, isn’t used to improve feed efficiency or growth in beef cattle, but is one of the most commonly prescribed steroid hormones in human medicine because of its anti-inflammatory and immunosuppressive effects.

Estradiol (an estrogen) and progesterone (a progestin) are the two female sex hormones produced in the ovaries. Oral con-

40

Two slices of whIte bread has 45,000 nanograms of estrogen; a serving of implanted beef has two PHOTO CREDIT: dr. Reynold Bergen

traceptives are synthetic versions of these steroid hormones.

Testosterone, produced primarily in the testes, has an anabolic effect in people, that is, it helps repair and rebuild muscle and bone tissue. In human medicine it’s often used to treat people with wasting diseases or recovering from surgeries. Synthetic forms of testosterone were developed to give people the benefits without the unwanted side effects, mainly the development of secondary male characteristics. Synthetic steroid hormones that have this anabolic effect are called anabolic steroids.

Abuse of anabolic steroids and substances that the body converts to steroids is most often associated with athletes trying to build muscle, strength and endurance, but their illegal use is also reported to be growing among teens wanting to buff up.

Beef producers don’t abuse the use of steroid hormones in beef production, as evidenced by a compliance rate greater than 99.9 per cent on residue tests. They achieve high compliance by choosing appropriate products for specific classes of cattle and using them according to manufacturers’ instructions.

The Canadian Food Inspection Agency (CFIA) conducts ongoing random spot checks at packing plants and has zero toler-

C at t l e m e n · N o v e m b e r 2 0 1 4

ance for hormone levels that exceed specified limits.

Use of growth promotants (hormones, ionophones and beta agonists) in beef cattle production isn’t anything new or covert.

The products must be manufactured, tested and proven safe for beef cattle and beef consumers in accordance with Health Canada’s Food and Drugs Act regulations.

The Canadian Animal Health Institute reports that steroid hormones have a long safety record without incident for cattle and consumers dating back to their introduction in Canada in the 1960s and 1950s in the U.S. They are also approved for use in Mexico, Australia, New Zealand, South Africa, Japan, Chile and another 24 countries. The World Health Organization, United Nations Food and Agriculture Organization, the European Community Scientific Committee and the Joint Expert Committee on Food Additives agree that hormones used in beef cattle production don’t pose a health risk to humans.

Steroid hormones and beef cattle

Hormones currently approved for use in beef cattle in Canada include three natural steroid hormones and their respective syn-

www.canadiancattlemen.ca

management

thetic counterparts: testosterone and trenbolone acetate (TBA); progesterone and melengestrol acetate (MGA); and estradiol (estrogen) and zeranol.

Zeranol, which is the active ingredient in the name brand, Ralgro, isn’t a steroid, but acts like a steroid by binding to the estrogen receptor. It is a synthetic form of the natural estrogen, zearalenone, produced by Fusarium spp. fungi.

According to The Merck Veterinary Manual, natural testosterone isn’t used on its own in farm animals because of the difficulty in achieving effective blood concentration levels over a long period of time (100 days) with current delivery systems.

The synthetic form, TBA, has greater anabolic activity, especially in feeder heifers and feeder cows and when combined with estradiol for steers.

Estradiol naturally occurs in relatively large quantities in male and female cattle and has potent anabolic effects at very low blood concentration levels in cattle. Supplementing estradiol is more effective in steers than for feeder heifers and feeder cows.

Most of the approved implants are combinations of estradiol with TBA and/or natural Continued on page 42

 selling t h e m essag e

Getting to the top of the search engine The Beef Cattle Research Council makes a conscious effort to get its factual information to the top of Internet search engines, but a lot depends on what consumers type into the search bar.

Tracy Sakatch, BCRC’s beef extension co-ordinator, says search engine-ranking algorithms are complicated.

“Getting on the first page of results is based on keywords, traffic, how often the site is updated, how long it’s been around and, most importantly, the number of significant links from reputable sites to yours,” she says. “Even when you try to do those things well, search results on individual computers will gradually customize to the user.

There’s a ton of competition with other sites trying just as hard to get on the first page, too, and the algorithms keep changing so it can never be mastered.”

She tries to predict keywords and include them in the titles and near the beginning of BCRC articles, using a variety of words to say the same things, as well as getting popular reputable sites to link to BCRC’s. Occasionally, she’ll ask for updated search engine optimization (SEO) advice from the council’s website developers.

BCRC doesn’t pay for professional SEO services and doesn’t buy Google ads, which are a couple of ways other organizations and companies use their resources to try to boost traffic, leading to more links to continually increase their page ranks. This can leave smaller, credible groups such as BCRC in the dust, but, again, it really depends on the words used to search a topic.

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m a nag e m e n t

Continued from page 41

progesterone added because the latter two seem to have the effect of slowing down estradiol release. Zeranol is a stand-alone product.

The forms of estradiol, testosterone and progesterone in implants aren’t orally active. If eaten they would be broken down by digestive acids and enzymes in the liver before entering the bloodstream.

That’s why steroid users who abuse veterinary steroid hormones inject them rather than eat them, Bergen explains. Oral steroid hormones for people are alkylated so they bypass the liver and enter the bloodstream.

Implants for beef production are commercially available in compressed pellets or silastic rubber to be implanted under the skin of the outer ear, which is easily discarded during processing. Release of hormones from compressed pellets is rapid at first, then slows over the course of 120 to 200 days, depending on the product.

MGA is approved as a feed additive for feeder heifers, mainly to suppress reoccurring heat cycles and the associated riding activity, thus conserving energy for growth.

It may also have the effect of increasing estradiol release from the follicles.

Bergen says a key point is that cattle are implanted long before they go to slaughter. By then, the implant hormone is used up. That’s partly why feed efficiency and growth rate trail off later in the feeding period — the implants and their growthpromoting effects are depleted.

It’s also why there’s almost no measurable difference in hormone levels in beef from implanted and unimplanted cattle. There is more variation in hormone levels between male and female cattle than between treated and untreated animals.

BCRC’s document, “Optimizing Feed Efficiency in Feedlots,” explains how and why beef producers may provide ionophores and beta agonists as feed supplements to improve feed efficiency and weight gain.

Neither contain steroid hormones, nor do they mimic or supplement hormones, Bergen clarifies.

Ionophores are a class of antibiotics not used at all in human medicine. They improve feed efficiency in several ways, one of which is by inhibiting methane-

producing bacteria in the rumen that waste feed nutrients because energy in the form of methane can’t be absorbed by the animal. The CFIA’s surveillance program ensures there are no antibiotic residues of any kind in beef.

People are most familiar with beta adrenergic agonists used in asthma medication. In cattle, beta adrenergic agonists bind to a beta receptor on the muscle and act sort of like adrenaline to redirect nutrients to muscle growth instead of fat buildup toward the end of the feeding period. Being water soluble, beta agonists approved for use in beef cattle in Canada don’t stay in the animals for more than a couple of hours. Compliance with use and withdrawal times is 99 per cent.

Bergen feels consumers are concerned about conventional beef production practices because they don’t understand them.

BCRC’s blog post on conventional production of Canadian beef and other sound information on the website, www.beefresearch.ca, will be useful references when talking with consumers about why the beef industry does what it does. c

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C at t l e m e n · N o v e m b e r 2 0 1 4

www.canadiancattlemen.ca

BeefWatch

Beef Watch is prepared by the staff of Canfax and Canfax Research Services, divisions of the Canadian Cattlemen’s Association

 Beef cow and breeding heifer numbers on July 1 were down, indicating the beef industry is still in the consolidation phase. Heading into 2015 expansion is anticipated to be slow both north and south of the border.

DEMAND

The fundamentals that have driven the market higher throughout 2014 will remain supportive to prices. The big question for 2015 is going to be how much pressure will come from pork and poultry if they can expand production and reduce prices. If the beef industry retains heifers for expansion in 2015, production will be even lower. This will create price pressure and potentially have consumers move away from beef towards other proteins. At this point in the cattle cycle the critical piece is not to sell more beef (we don’t have it!) but to prevent the loss of domestic consumption which is really hard to gain back later.

We typically focus on beef supplies in this article but this time we are going to take a closer look at consumers as retail prices have been record high and media coverage this summer has been extensive.

Consumer Demand is Strong Supply is only half of the equation when looking at the cattle market. While we have good data on beef supplies both domestically and globally; demand is more of a mystery with most data sets lagged by several months. However, we can still say something based on consumer response in the first half of the year.

Beef supplies available for consumption are projected to be down around 4.5% in 2014 with slightly smaller domestic production, smaller imports and larger exports.

Deflated retail beef prices have made new highs each month, averaging 10% higher so far this year. The increase in retail prices is more than what would be expected with smaller supplies indicating that consumers are willing to pay more for beef. In other words beef demand will be up in 2014.  change in real canadian retail meat prices 140%

Further upward movement in retail beef prices is anticipated going into 2015. Why? The AAA cut-out jumped sharply higher from December 2013 to March 2014 (+16%) before stabilizing.

It then jumped higher again in June and July (+10%) before stabilizing in August and September. Most food-service companies price their product needs just once or twice a year. As a result higher wholesale prices have yet to be fully passed on to the consumer. This will occur over the next several months. Consequently, strong wholesale and live prices reflect the market’s anticipation of future consumer demand.

Knowing how demand will actually change going forward is extremely difficult to predict. The most accurate predictor of demand is seeing how consumers have responded in the recent past, which has been extremely positive so far this year.

International demand is also strong with the average per-unit export price up 20% from January to August and volumes up 10%. Exports have been supported by a lower Canadian dollar; but overall global demand remains exceptional and is not going away. The FAO Outlook for the next 10 years shows the largest trade deficits for beef will be in Asia and Europe. Import growth in Asia is driven by growing incomes, which is a key demand driver for beef. In Europe, declining production along with stable demand for high-value products and a strong currency will support future imports.

The competition is slow to expand as well The strong rally in beef cut-out values this spring and summer was made possible by an equally impressive run-up in pork cut-out values as the impact of PEDv hit the market. In fact, the price relationship between beef and pork was maintained as both commodities moved higher and has only recently become strained as the pork cut-out drops. This eliminated much of the question about consumers switching between proteins. In addition, production increases in the poultry sector have been modest at best as it has also had issues with expansion.

Continued on page 44

 Canadian beef cow inventory july 1 6.0

Index year 2000=100

5.5

130% Million head

5.0 120% 110%

4.5 4.0 3.5

100% 90%

3.0

Beef 00

02

04

Source: Statistics Canada

www.canadiancattlemen.ca

Pork 06

Chicken 08

10

2.5 12

14p

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

Source: Statistics Canada

C a t t l e m e n · n o v embe r 2 0 1 4

43

BeefWatch Continued from page 43

The main competition over the next two to three years will be competing meats that are able to increase production faster than beef and therefore gain market share. The market is well aware that beef supplies are expected to get smaller while pork and poultry supplies will get larger over the next year. The question of how retail price relationships will be impacted depends on how well the pork industry is able to address PEDv this winter. Regardless, both pork and poultry expansion is anticipated to be slow in 2015. This will support the protein complex overall and the beef cutout. Expect further prices increases throughout the spring.

SUPPLY

Canadian herd shows no growth Total cattle inventories on July 1 were down 1.4% at 13.3 million head after seeing a 0.1% increase in 2013. Beef cow inventories were down 1% or 40,900 head to 3.92 million head. Regionally, Alberta with the largest beef cow herd at 1.58 million head was down 1.3% from last year, followed by Saskatchewan with 1.17 million head down 0.8%; Manitoba with 458,400 head down 1.1%; Ontario with 289,300 head down 0.7%; and British Columbia with 194,100 head down 2.1%. Atlantic Canada (+0.5%) and Quebec (+0.3%) were the only regions with more beef cows. Breeding heifers were down 3.5% or 22,300 head to 616,200 head with the entire decline coming from the west (-4%) while the East (+0.3%) appears to be more stable.

Slaughter heifers and steers were down 2.2% and 1.8% respectively. When combined with the slightly higher on feed numbers, Canadian feeder and calf supply outside of feedlots were down 2.4% or 140,690 head. Significant interest in feeders and calves from U.S. buyers will lead to stiff competition for feeders this fall, and create a further tightening of feeder supplies before January 1.

Lots of talk but little walk in the U.S. USDA has reinstated its July 1 cattle inventory report. While there are no official survey-based statistics for 2013, estimates were compiled by the Livestock Marketing Information Center (LMIC).

Canadian Cattle Inventories July 1 (1,000 head)

As of July 1, U.S. total cattle inventories were down 1% from 2013 and down 3% from two years ago to 95 million head. Beef cows at 29.7 million head were down 0.5% from 2013 and down 2.6% from two years ago. Beef replacement heifers at 4.1 million head were down 2.4% from 2012 and the LMIC’s estimate for 2013. This indicates little or no increase in replacement heifer inventories from two years ago despite red-hot breeding heifer prices reported. While there has been a lot of talk about heifer retention in the U.S. the only solid indications that producers are interested in stabilizing the herd is smaller cow marketings and a narrower steer-heifer price spread.

CYCLE INDICATORS The female-to-male disposal ratio (slaughter + exports – imports of all classes of cattle) is the best indicator of whether the herd is declining or growing. At 1.05 females being slaughtered for every male, we remain firmly in the consolidation phase for 2014 as heifer retention has not made up for sustained cow marketings. Beef cow inventories on January 1, 2015 will be lower.

Heifer-to-Steer Slaughter Ratio The number of beef heifers retained for breeding on July 1 was down 3.5%. Heifer marketings in 2014 are anticipated to be up 4.3% compared to steer marketings which are projected to be down 2.5%.

The heifer slaughter ratio, providing the number of heifers marketed for every 100 steers, confirms that producers are not breeding heifers. In 2014, the ratio was up to 70 compared to a low of 63 in 2013 and a 20-year average of 68. It is unsurprising that bred heifer trade has remained thin. That may not change in 2015 if producers choose to develop heifers from within their herd versus purchasing outside genetics.

U.S. Cattle Inventories July 1 (1,000 head) 2013

2014

2012

(USDA)

(LMIC)

(USDA)

14 vs 13

14 vs 13

14 vs 12

Total Cattle

95,000

96,050

97,800

-1.1%

-2.9%

All Cows

39,000

39,100

39,700

-0.3%

-1.8%

2014

2013

14 vs 13

Beef Cows

29,700

29,850

30,500

-0.5%

-2.6%

Bulls

228.2

227.8

0.2%

Dairy Cows

9,300

9,250

9,200

0.5%

1.1%

Beef Cows

3,921.6

3,962.5

-1.0%

Heifers >500 lbs

14,900

15,500

15,700

-3.9%

-5.1%

Dairy Cows

949.0

952.5

-0.4%

4,100

4,200

4,200

-2.4%

-2.4%

Beef rep. heifers

Dairy Hfrs

451.9

456.2

-0.9%

Dairy rep. heifers

3,900

4,150

4,100

-6.0%

-4.9%

Beef Hfrs (brdng)

616.2

638.5

-3.5%

Other heifers

6,900

7,150

7,400

-3.5%

-6.8%

Beef Hfrs (sltr)

1,199.6

1,226.1

-2.2%

Steers >500 lbs

13,500

13,700

14,000

-1.5%

-3.6%

Steers

1,607.5

1,637.2

-1.8%

Bulls >500 lbs

1,900

1,850

1,900

2.7%

0.0%

Calves

4,356.0

4,419.4

-1.4%

Calves <500 lbs

25,700

25,900

26,500

-0.8%

-3.0%

Total

13,330.0

13,520.0

-1.4%

33,600

33,500

34,500

0.3%

-2.6%

Source: Statistics Canada

44

C at t l e m e n · n o v e m b e r 2 0 1 4

Calf crop Source: Statistics Canada

www.canadiancattlemen.ca

BeefWatch Cow supply The beef cow culling rate remains disappointingly high, at a projected 13% in 2014 compared to 14.3% last year and the 20-year average of 11%. Domestic cow slaughter is down a modest 5%; while live exports are down 14%.

Regionally cow slaughter is down 6% in the West and 3% in the East; while exports are down 11% in the west and 17% in the East. Overall, cow marketings (domestic slaughter + exports) are projected to be down 8% in 2014.

Cow marketings have been encouraged by recordhigh prices this year. Prices have been exceptional with Alberta D1,2 cow prices reaching a high of $125/cwt in August, up 55% from 2013. In the U.S. cow prices have been trading at a C$3-6/cwt premium to Alberta in the third quarter compared to a C$13-17/cwt premium in the first quarter. This has eased the incentive to go south.

Manufacturing Beef and prices The decline in cow slaughter draws attention to the importance of lean manufacturing beef in the overall beef market and consequently cattle prices. There is generally an inverse relationship between non-fed (cow and bull) beef production and non-NAFTA imports. When nonfed production is small, non-NAFTA imports increase and vise versa. However, there is currently strong competition from emerging markets for manufacturing beef and declining world beef production. As a result while nonfed production has declined non-NAFTA imports have not increased correspondingly; leaving a deficit in the manufacturing market and supporting cow prices.

Less than 20% of Canada’s beef production is nonfed, from cows and bulls. The U.S also has less than 20% of production from non-fed animals. This is despite its proportionately larger dairy herd. In the U.S. 24% of its cow herd is dairy; while in Canada 19% of the cow herd is dairy. Fed production in the U.S. is supported by imports of fed and feeder cattle from Canada and Mexico.

North American manufacturing beef is sourced from cull cows, of course, but also from the end primals (chucks and rounds) taken from fed cattle.

While supplies of manufacturing beef are tight due  canadian female-to-male disposal ratio 1.3

Slaughter + Exports - Imports (All classes)

Beef Imports down U.S. beef imports are projected to end the year up 20% supporting overall lean beef supplies south of the border.

In contrast, Canadian beef imports are down 19% Jan.Aug. and are projected to end the year down 12% or 56 million pounds. In addition, non-fed beef production is projected to be down 55 million pounds resulting in a combined reduction of lean beef supplies around 111 million pounds. If imports don’t increase in the fourth quarter, the decline will be even larger than that. Lean 85% trim prices moved sharply higher in July and were 43% or $85/cwt higher than last year in August.

Imports from the U.S. are currently down 22% while non-NAFTA imports are down 11%. With such strong international demand non-NAFTA imports are not expected to increase much in 2015. Exports are up 13% from Jan.-Aug. and projected to end the year up 10% resulting in an improved net beef trade balance and smaller domestic supplies.

With no change in supply in sight, trim prices will remain supportive to cow prices in 2015, encouraging cow marketings. As cow marketings are not likely to see a significant drop in the short term, heifer retention has to increase in order for the Canadian herd to remain stable, let alone grow. And yet the opportunity cost of retaining heifers versus selling them is record high.

Consequently, expansion will be very slow both north and south of the border over the next two to three years.

Feeder prices push feedlot break-evens higher Break-evens will continue to increase this fall with strong feeder prices. The Canfax TRENDS report shows projected feedlot margins, based on the live cattle Continued on page 46

 canadian AAA cut-out versus 85% trim

20 yr. average + 1.01

1.2

to reduced cow marketings and limited imports; a larger portion of the fed animal is being ground.

Therefore, as manufacturing beef prices increase they are pulling the entire cut-out along with it.

Fresh 85% lean trimmings

2.80

1.1

2.30

1.0 0.9

1.80

0.8

1.30

0.7

Source: AAFC, CBGA, Canfax

www.canadiancattlemen.ca

Sep-1

Nov-

Apr-1

Jun-1

Aug-

Jan-1

Mar-

May-

Oct-1

Jul-1

Dec-1

Feb-1

Sep-0

Nov-

Apr-0

Jan-0

Jun-0

13

10

07

04

01

98

95

92

89

86

83

0.80 80

0.6

Canadian AAA

3.30

Source: Canfax

C a t t l e m e n · no v ember 2 0 1 4

45

BeefWatch Continued from page 45 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)

Q1 EAST

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

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

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

Q2 EAST

1.35

1.43

1.27

1.28

1.20

WEST

1.42

1.53

1.32

1.34

1.23

Q3 EAST

1.52*

1.61*

1.35*

1.37*

1.33*

WEST

1.58*

1.58*

1.37*

1.39*

1.32*

2012

2013

2014

* Record highs, East and West

 Break-even versus market price steer calf Break-even

Cash

Hedgeable

$170

Cdn $ per cwt

$160 $150 $140 $130 $120 $110

Source: Statistics Canada

46

C a t t l e m e n · n o v e mb e r 2 0 1 4

May-15

Jan-15

Sep-14

May-14

Jan-14

Sep-13

May-13

Jan-13

Sep-12

$100

futures, will become negative by January 2015. However, the cash market is significantly above the hedgeable price. Margins based on cash prices show strong profits for this summer as fed prices increased steadily to peak in July. However, few fed cattle are being sold cash and a record number of yearlings were contracted this spring. Therefore current feedlots margins are probably overstated while margins are expected to decline heading into 2015 they won’t be as bad as the cash market shows if feeder cattle were contracted.

An attractive fed-feeder swap has kept feedlots current and carcass weights light throughout 2014 despite lower feed costs. But as feed prices make their bottom this fall further, support for the feeder market will need to come from fed cattle prices.

www.canadiancattlemen.ca

 straigh t f ro m t h e h i p

By Brenda Schoepp

Lean in our Approach

T

he beef industry in North America is changing rapidly. The invasive technology that introduced the concept of ground beef as a burger still holds the attention of the majority of consumers and the largest single slice of market share. Today, over 60 per cent of all beef sold in the U.S. is ground product.

One could conclude that this is so because of economics. The less folks have to spend the more they will go to the ground product. This is true to a point. As beef prices continue to climb the choice of product becomes more important. Although the dollar value on beef sales has increased, the volume has been stagnant. Now all products are expensive at the counter and ground beef is the protein of choice. Eighty-three per cent of all consumers are eating ground beef at least once per month, and that is a repeatable and predictable pattern that is not seen on other beef offerings. Consumers of all ages and in all walks of life buy ground beef. Half of the consumers buy a fresh prepared or frozen patty.

At the end of the day, the evolution of ground beef has been based on convenience. With 98 per cent of all ground beef sales from the supermarket being prepared as a meal at home, there is much to be said about a foolproof product that any person, regardless of culinary skill, can prepare. Most beef patties hit the frying pan or the microwave and that data is a stunning contrast with regard to consumer data that focuses on health.

In fact, it is ground beef that consumers ignore in the health debate. To put it frankly, convenience and taste override health concerns. Everybody loves a burger and that includes the wealthy client. This is evident in the growing offering of high-end and expensive hamburger offerings as consumers look for a premium beef experience that they can afford.

Whole muscle grind is just starting to gain in popularity but if taste and quality are secondary drivers, then this concept hits the mark. Companies are looking at ways to deliver the goods and the market most certainly has been spiced with the demand as 85 and 90 lean now sell at a premium to the overall cutout value of beef. The key here is that lean is in and that conversation takes on a whole new direction.

Several authors have posed the question suggesting that cattle should be raised and fed specifically for this market. The concept is not new but outside of the cultural norm. I call it butcher’s block, or the inability to conceptualize the data and put an action plan together to meet consumer need and demand. Should Canadians consider the value of ground beef in the market place and examine the traditional feeding patterns that have added value to the grain industry?

Feeding for the grind involves forage fed cattle for a

www.canadiancattlemen.ca

longer period of time. That means owning the inventory longer, which may translate into risk. Traditionally this would be the conversation. Today, producing ground beef on certain sets of cattle can be aided or dare we say — directed — by genomics. When cattle are predetermined not to quality grade, they most certainly fit the bill for the lean ground trade. Can we be lean in our approach to the future of the Canadian beef industry?

All things are possible but between the data, science and the technology, there is most certainly an economic incentive to value-add to a subset of animals. Capturing the cutout value at the ranch level takes another set of skills but most certainly the capability to travel up the chain with partner in hand is not nearly as formidable as it was a decade ago. In addition, the added value of perception and the opportunity to brand the process is looming as large as a mountain landscape.

Once seen as the poor country cousin in the meat case, the ground section has garnered new respect. This love affair with the burger is not limited to our domestic market as the burger transcends cultural and generational gaps. Canada’s reputation in terms of food safety is rather impeccable from an international perspective and that is highly desirable. Our willingness to embrace these opportunities, though, is somewhat sluggish and we tend to have a great fear of colouring outside of the lines because of the economic interconnectivity between grain and cattle. In all fairness we must consider the even stronger economic connectivity between cattle and grass and the lean approach to production.

Convenience, taste and quality all resonate with the consumer of the day. Both systems offer this in the product. When it comes to health consciousness, ground beef (especially lean ground) is forgiven because it is a North American addiction. High-end burgers are one of the fastest growing areas in food service and now featured on more than 50 per cent of all menus. The product has evolved and is now heavily branded and value-added. Burgers contain flavour, vegetable, cheeses and a variety of spices, and are available as patties, bulk, chub, and in value-added presentations and as part of prepared meals.

Information and technology allow us to be lean in our approach and direct in our target marketing while preserving our cultural heritage and reducing overall production costs — a strong set of considerations when more than half of consumption is ground beef. c Brenda Schoepp is a motivating speaker and mentor who works with young entrepreneurs across Canada and around the world. She can be contacted through her website www. brendaschoepp.com. All rights reserved. Brenda Schoepp 2014

C at t l e m e n · N o v e m b e r 2 0 1 4

47

 CCA repo rts

By Dave Solverson

Texas trip

T

he Canadian Cattlemen’s Association (CCA) was out in force at the Five Nations Beef Alliance (FNBA) annual meeting, which brings together cattle producer leaders from Canada, the U.S., Mexico, Australia and New Zealand. Joining me on the mid-October trip were CCA past-president Martin Unrau, executive vice-president Dennis Laycraft and director international and government affairs John Masswohl. CCA’s youth mentorship program, Cattlemen’s Young Leaders (CYL), was also represented, with program co-ordinator Jolene Noble and CYL’s Stuart Somerville (Alberta) and Brett McRae (Manitoba) seizing the opportunity to observe the leaders of the global beef industry at work formulating policy.

Hosted by the Alliance’s U.S. member, National Cattlemen’s Beef Association (NCBA), the meeting included tours of various Texas cattle operations ahead of the twoday conference to discuss issues of common interest. I have been to Texas a few times, but had not seen much except hotels, airports and meeting rooms. This time I participated in the tour and saw for myself where the Canadian industry is at a competitive disadvantage, and in many cases where I believe it has a clear advantage.

For instance, the famous King Ranch is in a part of Texas that is in an environment prone to drought. The 825,000-acre ranch has been very innovative in its management practices over its 150-year history and is the birthplace of the Santa Gertrudis and Santa Cruz breeds, crosses of Bos Indicus — important for heat and tick tolerance — and Bos Taurus, like the British breeds raised in Canada.

Like King Ranch, McFaddin Enterprises Ltd., a fifthgeneration ranch operated by NCBA president Bob McCan, battles frequent drought and constantly fights the costly invasion of mesquite brush and noxious weeds.

One competitive advantage these operations have is that they lease substantial tracts of land for recreational hunting opportunities. In my view Canada’s distinct advantage is its cooler environment and rich soils which allow us to use more productive Bos Taurus genetics.

Throughout the tours much emphasis was placed on managing pasture for grazing as well as conserving feed and habitat for wildlife. One interesting aspect that resonated with Canadians on the tour was that Texas feedlots provide protection from the sun instead of the wind like back home.

After stops at interesting and diverse parts of the U.S. beef supply chain we got down to business of the FNBA meeting. Updates from members painted an interesting picture: North America is experiencing record high cattle markets as our herds have contracted over the last decade because of widespread drought and competition for acres from profitable cash crops and in Canada’s case, market

48

C at t l e m e n · n o v e m b e r 2 0 1 4

access problems. Australia is having to liquidate much of their herd because of drought and their producers are not enjoying anywhere near North American prices. New Zealand’s beef industry is becoming a byproduct of the dairy industry, with 1.8 dairy cows per beef cow.

Brett Stuart, a global market specialist with the U.S.based Cattlefax, spoke of the tremendous global demand for protein and of the need to produce more food in the next 50 years than has been grown in the last 7,000 years.

He talked about actions of governments around the world and how they often distort information, like China’s corn pricing policy, (US$10.20/bu.) which is causing mass liquidation of pigs. My take-away from his report is that Canada’s beef producers should have many good years ahead, and that it will be very important to position ourselves to access the world.

The conference concluded with a unanimous agreement from the FNBA for a united stand for an ambitious outcome in the Trans-Pacific Partnership (TPP) negotiations. A statement was issued by the FNBA calling for TPP leaders and their negotiators to secure “gold standard” outcomes for beef. This means: elimination of tariffs (without exclusion); no trade-distorting restrictions (quotas) or safeguards; clear disciplines for non-tariff barriers to trade; liberal rules of origin; trade-facilitating regulatory systems and international science-based standards. The statement reaffirms FNBA’s previous statements on TPP and urges TPP negotiators to strive for the high level of ambition envisaged by TPP leaders in 2011. This co-ordinated advocacy is having an influence on other industries.

Alliance members discussed their efforts on sustainability, an area in which I believe Canada is well ahead of the pack, and avenues to pursue to ensure the politicizing of science is stopped.

The FNBA is represented by CCA, NCBA, the Cattle Council of Australia, Confederación Nacional de Organizaciones Ganaderas, and Beef + Lamb New Zealand.

Together, FNBA represents producers from countries that account for one-third of global beef production and approximately half of global beef exports.

Paraguay (Asociacion Rural del Paraguay), and ACRIMAT (Associacao dos Criadores de Mato Grosso) representing the Mato Grosso region of Brazil also attended.

Both were accepted as observers and could be considered for full membership in the alliance next year.

Canada’s competitive advantage over these regions is that they are landlocked and our infrastructure is superior. They have market power concerns as well. Canada’s situation is much more competitive with two major packers in the west and live cattle exports to the U.S. We must do all we can to maintain and improve this environment. I would like to thank NCBA for hosting a very productive meeting. c

Dave Solverson is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

 TH E IN DUSTRY

NewsRoundup Consumers crave quality

Highly marbled beef fits the bill

By Trish Henderson

Though the share of AAA-grade beef has increased over the past 20 years, Canadian consumers are still looking for more of the best.

“Beef consumption is definitely on a steady decline, but there has been a spike in demand for better quality. Consumers may be eating less beef, but they are spending more money on it,” James Bradbury, director of market development for Canada Beef, told participants at the summer Carcass 101 workshop in Olds, Alberta.

“There’s been a demand shift: even though retail beef prices are rising, consumers continue to buy the product,” said Bradbury. “Everybody wants the best — AAA or Prime — and they’re willing to pay for it.”

That’s a good thing for premium brands like Certified Angus Beef (CAB), he added.

Marbling is the most important indicator of beef quality, and a key specification for CAB; 75 to 80 per cent of Angus-type cattle evaluated for the brand in Canada fall short and nearly all of those cattle lack sufficient marbling.

Dr. Phil Bass, corporate meat scientist for the brand speaking at that same workshop, compared marbling in beef to butter on a baked potato.

“Without butter, that potato is boring. But add a chunk of butter and spread it around — Mmmm — then you’ve got something,” he said. “Marbling is like butter: the more you have, the more palatable the meat will be. That’s why CAB accepts only carcasses falling into the upper twothirds of the AAA grade or higher.”

And Canadian consumers agree. Sales of the U.S.-based but also locally produced brand have been steadily growing in Canada, setting records each year since 2007.

The success of CAB and other branded beef programs has meant less other highquality beef available to retailers, said Bradbury. That’s why many grocers label their beef as “AA or higher.”

“Costco offers AAA beef, and Prime in some stores,” he added. “Costco buys www.canadiancattlemen.ca

CAB’s Dr. Phil Bass equates marbling to putting butter on a baked potato.

almost all of the Prime beef in Canada.

High-end steak houses willing to pay higher amounts are the only other customers who can get Prime.”

Still, the market wants more. In the last year, Bass said later, Toronto-based St. Helen’s Meat Packers has begun packing and selling CAB brand Prime.

“To commit to a new sort in the grading cooler and change over to a new label on a fabrication line says a lot,” Bass explained.

“That’s consumer demand reaching into the beef supply chain.” Nationwide Canadian restaurant chain JOEY upgraded its sirloin menu feature to CAB Prime last May and reports brisk sales.

Such growing demand can mean more revenue for cattle producers using Angus genetics, “if they take advantage of the marbling genetics available within the breed,” Bass said. Premiums for CAB-qualifying carcasses in Canada have been $3 to $4 per cwt or about $30 per head. In the U.S., CAB grid premiums have been twice that at times, and Prime premiums double that again.

Of the 43 million pounds CAB licensed partners sold in Canada in 2013, most was produced domestically but almost half, 20.5 million pounds, was imported from the U.S. With a greater focus on marbling, Canadians can supply more of that high-quality beef and earn the market premiums for doing so.

Adjusting seasonality could create another

James Bradbury

opportunity for Canadian producers to increase margins, according to Bradbury.

“Today, our industry does not follow the consumer. In Canada, we produce most of our highly marbled carcasses in the winter months. Grocers, restaurants and shoppers want to have AAA steaks for the summer BBQ season, but this is when supply of high-quality beef is lowest,” he said.

Carcass size is another area of disconnect in the beef business.

“Since 1975, carcass size has been increasing by an average of seven pounds per year,” Bradbury pointed out. “Food-service customers don’t want a giant steak. In the past, retailers and food service would pay more for a smaller Continued on page 50

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News Roundup Continued from page 49

rib-eye and discount large ones. They can’t do this now because all carcasses are big.”

“Cattle producers sell by the pound, but restaurants and food service sell by the ounce,” Bass concurred. “We need consistent carcass size for our consumers to have a consistent eating experience, and that’s why CAB added rib-eye dimension criteria (10 to 16 square inches) to its specifications in 2007.”

In addition, Bradbury advocated for a beef industry shift of focus to consumers and sharing the story of beef production.

“We need to stop talking about the price of beef and start talking about value,” he advised.“Canadian consumers are becoming much more aware of where their foods come from. They want to make sure that it’s healthy and safe and made from good ingredients. People want to know more about what they’re eating.”

Needs Your

Calving tips & tales Friends and neighbours, we are once again looking for your best calving tips and tales for Cattlemen’s January 2015 Calving Special. We’re looking for good ideas, practical advice, or humorous tales and photos to share with fellow readers. A reward will be sent for Tips & Tales printed in this special.

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Bradbury compared today’s beef industry to the wine sector of the 1970s.

“Back then consumers would look at the wine menu in a restaurant and say, ‘Hmm, do I want the red or the white?’ Today, we know what country a wine comes from, the viticulture practices behind it, and roughly what it will taste like based on those things.

We understand how it was produced, so we’re willing to pay $50 a bottle for it in a restaurant. But that same restaurant sells steaks for $50, and what story do they tell about beef?”

It takes both beef and wine at least three years to get to a restaurant table, Bradbury pointed out. But unlike the wine sector, the beef industry has not seized the opportunity to tell consumers about the care that went into producing it.

He acknowledged the exception in the brand owned by 30,000 Angus producers that regularly links its ranchers across North America with chefs, retailers and restaurateurs.

“This is where CAB has done an awesome job. It has taken a brand, given it meaning, and put it next to a steak. The customer looks at that brand and thinks, ‘I’m paying good money for that beef.’ They may not know all of the features that go along with the CAB product, but they believe that the brand is about quality,” he said.

“As (beef) marketers, we need to do a better job of understanding our customers and how to talk to them. And people want to know who the farmers are,” Bradbury added.

Canada Beef is doing its part to promote Canadian beef and increase carcass values.

Efforts include sharing photos or stories of Canadian beef producers in retail flyers or grocery store meat case displays, ideation sessions with chefs and food-service personnel to show different cuts of beef, and creating value-added products. The new Canada Beef Centre of Excellence, opening in Calgary this winter, will help further these efforts.

CAB educates consumers and all segments of the beef industry through its world-class Education & Culinary Center in Wooster, Ohio. Bass said, “We are educators and we help chefs, retail operators, meat cutters and academics understand what it takes to raise beef to this level that will not only help the meat-handling end but also drive demand for the cattle.”

Canada Beef works with CAB on projects of mutual interest, such as growing demand for beef in Canada by highlighting the opportunities inherent in quality that can be produced in Canada as well as in the U.S.

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NEWS ROU NDUP

Breeding

The next time you process cattle, pull tail hairs

By Sean McGrath, Round Rock Ranching, Vermilion, Alta. (With permission of the Beef Cattle Research Council)

DNA is the genetic code that determines how an animal grows, performs and interacts with its environment. Every animal inherits DNA from its parents with one-half coming from the maternal side and one-half from the sire. The building blocks of DNA are four base pairs: Adenine (A), Thymine (T), Guanine (G) and Cystosine (C). DNA is arranged in long ‘double strings’ in which A and T are paired and C and G are paired. A ‘gene’ is an area of this double string that codes for a

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specific function in the animal. By substituting one or more base pairs in the gene (i.e. replacing an AT pair with a GC pair) a different function may be expressed in the animal (i.e. red coat colour versus black).

Technology to examine DNA in cattle has been around for several years, however, in the past it has been cost prohibitive. Newer technology called SNP (pronounced “snip”) has changed much of this and made DNA testing a viable option for beef producers, even at commercial industry levels. SNP technology looks for changes in base pairs along the string of DNA. It does not look for specific genes, but rather examines areas that may be ‘associated’ with or close to regions of DNA that code for specific proteins or functions. The advantage of SNP technology over

previous tools is that it allows us to examine many more pieces of DNA at a low cost.

SNP technology may be used in several different ways including parentage determination, traceability, trait assessment, genetic defect testing, enhancing accuracy of genetic evaluations and sorting cattle into management groups. (Links to the main Canadian labs: http://genetix.quantumgenetix.com/ and http://www.deltagenomics.com/.)

Because various breeds are the result of differences in their DNA, some tests may be breed specific or be more effective in one population than another. It is important to check if any available test is specific to the breed or crossbreed in question.

Continued on page 52

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51

News Roundup Most producers will not want to jump right into parentage or testing for various traits, however, collection and storage of DNA on your herd can be a valuable management tool at a relatively low cost. Having DNA samples readily available allows you to easily access the technology at the time

and level you feel is appropriate. Some feedlots are now requesting cattle that fit specific genotypes, so it might be worth having your cattle’s DNA samples on hand so that you can be an eligible supplier. Another example: if you have calving problems, it will be possible to rapidly assess whether the problem is with a specific sire or a more general management problem involving cattle from several sires. Collection and storage of DNA samples is an inexpensive way to prepare for these types of scenarios.

It is useful when collecting samples to collect them early in an animal’s life and at a convenient time such as during regular

processing. Collecting new sires as they are delivered to the farm, or replacement heifers as they are selected for the cow herd is a good practice. If an animal dies or is disposed of such as a cull bull that you may want to test, you cannot retroactively collect samples. As well, in the event that you want to use testing for serious issues such as calving difficulties or genetic defects you do not want to have to run the entire sire battery or cow herd through the chute in the middle of a busy period.

Since every tissue in the animal contains DNA, options for DNA samples include tissue, blood and hair. Hair is the easiest and

Grab the tail switch.

Comb out dirty hair, then grab 10 to 20 and pull.

A good sample is clean, dry and has root bulbs.

Continued from page 51

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cheapest to collect and store, as the DNA in the root bulb of the hair decays very slowly. Tissue samples, which contain a higher quantity of DNA than hair samples, must be collected and stored using specialized containers with preservatives or be frozen in order to prevent the DNA from breaking down, but they work well if you are testing right away. For long-term storage, hair can be placed in a paper envelope labelled with the animal’s tag and stored in a dry and dark location such as a filing cabinet.

How to collect tail hairs for DNA sampling:

• Grab the tail switch. Tail hairs should be pulled (not clipped) from the animal’s tail switch.

• Comb or brush out the switch first to remove dead hairs.

• Wrap five to 15 hairs around your finger about two inches from the end of the tail, then give a sharp pull.

Sample size:

• Twenty hairs will provide enough sample for basic parentage testing.

• Forty to 50 hairs will provide enough DNA material to conduct a variety of tests in the future. (Note: some breed associations require 60 hairs.)

• Ensure the tail hair is dry and clean to ensure the lab will process the sample and to prevent cross-contamination of the DNA. • Store in a clearly labelled paper envelope in a dark/dry location such as a filing cabinet or drawer.

• Use a separate paper envelope for each animal.

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â&#x20AC;˘ A good sample will be clean and dry and contain the root bulbs. The more samples collected, the more testing options will be readily available in the future. Each operation will need to decide which animals should have DNA samples on file. Collecting replacements each year will eventually provide DNA samples for the entire cow herd.

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tion of the animal. A lower number of animals, lower testing cost.

Influences a large number of offspring (one-half of the calf crop DNA).

May consider higher degree of testing for these animals.

• Cows: Large number of animals that remain in herd for a long time frame. Half the calf crop DNA. May consider collecting/testing replacements as they enter the cow herd to eventually end up with the entire cow herd being completed.

• Calves: Large number of animals. May consider testing at lower levels (i.e. a parentage only. May consider testing specific samples (i.e. replacement heifers, chronic illness, calving difficulties).

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Summary

• DNA technology is rapidly changing and costs are decreasing.

• A variety of DNA tests are available at various price levels.

• DNA tests may be breed specific.

• DNA sample collection using hair can be a low-cost way to prepare to use this technology. c

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 NEWS AB OUT YOU

By Deb Wilson

PurelyPurebred

n Peak Dot Ranch is donating the proceeds of the sale of a Peak Dot heifer to the Saskatchewan Stock Growers Association. Peak Dot Barbara 258S is a purebred heifer that comes from one of the most popular, longest-running cow families at Peak Dot Ranch. She is sired by Peak Dot Volt 950U, bred to our new herd sire Bush Easy Decision and is due to calve April 15, 2015. She will be the first animal in the sale ring at 1 p.m. and will start the Dec. 4, 2014 Peak Dot Ranch Bull Sale in Wood Mountain, Sask. n Canadian Beef Breeds Council sponsored an on-farm tour at Belvin Angus for members of the Industry Government Advisory Committee (IGAC) who are responsible for implementation of multispecies animal traceability in Canada. The evening consisted of a great meal along with a hands-on demonstration of logistics associated with purebred beef cattle traceability. Mabel Hamilton and her family hosted the event.

n Alberta Farm Animal Care (AFAC) faced a firestorm of controversy last month when allegations of animal abuse at the Western Hog Exchange facility in Red Deer hit the media. As with any such allegations, due process is important when determining wrongdoing to take appropriate action.

I live in the vicinity of the Western Hog Exchange and saw this reported on the Alberta TV stations, repeatedly. The video showed the bats that hogs were “bludgeoned” with at the facility. I have to say that the bats definitely appear to be of the large plastic toy variety or similar to those. I would imagine that they are used to appear intimidating to the animals both in size and noise created. A person, who works with hogs that have been raised in confinement, can understand how difficult it is to work with, and move these animals. It is unfortunate the videos were taken and used out of context, as well as being sensationalized, but as livestock producers this is something that we will continue to see happen.

As an industry we need to know who we hire, who we let into our operations, and ask ourselves do the employees understand why we do what we do. Twenty seconds of video can discredit a whole industry, so we need to take this seriously and be proactive. Perhaps the answer is legislation that makes it illegal for a person to gain employment on a livestock operation, of any kind, for the purpose of creating video that misrepresents the industry or operation; as well as improving our handling practices.

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Secretary treasurer Riley (l to r), Kayla and president Vanessa presenting Kayla with her certificate.

n Last winter the Alberta Shorthorn Association decided to donate a $500 and a $250 certificate to a 4-H member in Alberta who showed a Shorthorn or Shorthorn influenced animal over the past 4-H season. All of those members had their name placed in a draw, with the first name drawn receiving the $500 certificate and the second name receiving the $250 certificate, to be used towards the purchase of a Shorthorn or Shorthorn-influenced animal from a member of the Alberta Shorthorn Association.

This year’s winner was Kayla Van De Voorde. She is an eight-year-old Cleaver Kid from the Bashaw 4-H Beef Club who chose to show a Shorthorn “because my Grandpa and Grandma Peterson, and my mom and dad show Shorthorns. I think it’s in the family to show Shorthorns. They’re so quiet.

They are easy to train to lead and they don’t like to kick very hard or very much.” Kayla plans to use her $500 certificate to buy a roan steer — or possibly a white one — for her 4-H project. Roan is her favourite colour.

Benjamin Masson was the winner of the $250 certificate, so he will be looking for a Shorthorn animal of his own. n December will mark the beginning of Farm & Food Care Saskatchewan (FFCSK) which grew out of the Farm Animal Council of Saskatchewan (FACS), an organization with a 22-year history advancing animal care in the province. The new Farm & Food Care Saskatchewan will have an expanded mandate to help connect consumers with food and farming in Saskatchewan. It follows a similar pattern followed when the Ontario Farm Animal Care Council evolved into Farm Food Care in 2012.

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FFCSK will represent livestock, poultry, crop and horticulture producers, and work with agriculture partners, chefs and associated businesses — all those who are passionate about food and farming in Saskatchewan. Today, there’s greater interest than ever in understanding how food is grown, especially since less than two per cent of Canadians now have a direct link to the farm. The mandate of FFCSK is to help consumers make the connections between the food they eat, and where it comes from and how it ends up on their plates.

Programming will focus on reaching consumers to build public trust in the entire food industry while educating members about best practices, communicating with the public and responding to concerns about animal care and environmental sustainability.

A website and provincial Ag Ambassador’s Speakers Bureau are currently in the works and plans are being made to enhance networking with the culinary industry, on farm tours, and a social media strategy.

The official launch will occur at an inaugural industry conference Dec. 10 and 11 at the Sheraton Cavalier Hotel in Saskatoon.

For more information and to register for the conference visit www.farmfoodcaresk.org.  The new CBBC website has officially launched! It can be found at www.canadianbeefbreeds.com. They welcome your comments to help them improve the site and ensure the most useful information is available.

The official CBBC Twitter handle has been updated to @CanBeefBreeds so make sure to follow CBBC. The staff will maintain personal pages as well, so follow Doris (@DorisRempel), John (@Gentec_John) and Michael (@ LatimerMichael) on those accounts for upto-date industry information.  The Beef Cattle Value Chain Round Table (BCVRT) was held in Calgary Oct. 1-2.

There was general consensus that currently the No. 1 issue for the Canadian beef industry is the difficulty in finding skilled and entry-level labour for farms, feedlots and packing plants.

 Cattlemen’s Young Leaders Profiles — Colin Verbeek was raised on his family’s mixed grain and purebred Limousin farm in Sturgeon County, near Morinville, Alta. Hillview Farms calves out 150 purebred Limousin Colin Verbeek females each year and sells high-quality Limousin bulls by private

treaty, and in the Prime Limousin Club Bull Sale in Westlock, Alta. the third weekend of March. Colin graduated from the Olds College agricultural management program with a major in marketing and worked for Richardson Pioneer. This spring he will be returning to the family farm and starting up his own cattle operation with his fiancée, Tessa Nybo, another CYL mentee.

Continued on page 58

Be part of the third annual Canfax Cattle Market Forum. Get the current market information specific to cattle producers and industry stakeholders.

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For more information and to register online for the Forum visit www.canfax.ca or call 403-686-8407.

 Tina Zakowski was scheduled to begin maternity leave as communications director with the Canadian Angus Association on October 24. Karla Ness (kness@cdnangus.ca) will be taking over Tina’s duties while she is on leave. This will be Tina’s second child and we wish her best of luck.

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for BUILT TWO

Colin has a passion for improving genetics through the use of artificial insemination, genomics, expected progeny differences, and other progressive means of selecting and breeding efficient, productive and sound structured cattle. Colin is a director of the Alberta Limousin Association and is looking forward to becoming more involved in cattle industry groups, as he progresses as a producer and industry leader himself.

Colin is eager to learn from his mentor, Dyce Bolduc Cudlough Farms at Stavely, Alta., as he begins building his own operation.

— Laura Ecklund grew up on a cow-calf operation in southwestern Ontario, raising purebred Limousin cattle. In her youth, she was an active 4-H member in the local beef club and also showed cattle with the Ontario Limousin Association. Laura’s passion for beef cattle led her to pursue a career in the beef industry. She moved to Alberta to attend Laura Ecklund Olds College graduating with a diploma in agricultural business and a bachelor of applied science and agribusiness degree. She and her husband, Cody, now live in Olds.

In the near future they hope to start their own commercial beef operation.

Through the Cattleman’s Young Leaders program and her time with mentor Deb Verbonac a senior account manager with the PR firm AdFarm, and a former staff member of the Canadian Limousin Association, Laura would like to become involved in educating consumers about beef production.

— Kristine Blair grew up in Woodside, Man. on a cow-calf and backgrounding operation. The goals of her family’s operation have been to strive for excellence in grazing management and environmental stewardship. She is in the process of building her own cow-calf herd and she is very excited to be establishing an operation near LanKristine Blair gruth, Man. Kristine received her bachelor of science, from the faculty of agriculture and food science at the University of Manitoba majoring in agroecology. She has spent some time working for Agriculture and Agri-Food Canada (AAFC) on projects including riparian area health, as well as the impacts of bale grazing on forage quantity, quality and species composition.

Kristine is currently enrolled in the master’s of animal science program at the University of Manitoba. Her research is part of a larger study to develop beneficial management practices (BMPs) that improve the economic and environmental sustainability of the Canadian cattle industry. This is particularly important as cattle producers in Western Canada have begun to change the way in which they overwinter cattle, moving from traditional confined pen systems to extensive in-field systems including swath grazing and bale grazing. Kristine’s project will compare energy lost as methane, a greenhouses gas, in background cattle. More specifically, she will compare intake, gain and energy use efficiency in steers fed during winter, four forage-based diets that differ in protein content. The diets have been formulated to reflect the range of diets fed to backgrounding cattle in Western Canada.

Her mentor is Jeffrey Fitzpatrick-Stilwell, senior manager sustainability with McDonald’s Restaurants of Canada. c

Bryce and Dawn McKenzie, Rosetown, Sask.

Publications Mail Agreement

58

Number 40069240

C at t l e m e n · n o v e m b e r 2 0 1 4

www.canadiancattlemen.ca

 Market Su mma ry

By Debbie McMillin

TheMarkets Fed Cattle Contracted cattle continue to make up a large percentage of our market-ready supply. Although fewer cattle have been traded in the cash market, prices did rise by $3.67/cwt from the end of September to average $165.48 in the second week of October. The cash-to-cash basis widened during the last two weeks to 16.77 under the U.S. That is 4.55/cwt wider than last year at this time. The current cash market is up nearly $47 over than the same week a year ago. Fed cattle marketings, both slaughter and exports, are also up on the year. Steer slaughter is up four per cent at 1,109,859 head and heifers up 10 per cent at 661,455 head. Fed cattle exports are running five per cent ahead of last year with 290,842 head shipped to date.

At the beginning of October steer carcasses weighed an average 901 pounds, the first time they have gone above 900 pounds since the same week in 2012. Carcass weights normally increase at this time of year; however, a lower cost of gain has encouraged some extra weight.

Feeder Cattle Pushed by the futures, falling barley prices and a slumping dollar an already hot feeder market continued to surge with new records being posted week after week. 550pound feeders climbed $20/cwt in the past two weeks to average $294.30 at press time, putting them more than $128 over last year’s price.

Seasonally lighter volumes of heavy feeders pushed 850-pound feeders to an average $241.83/cwt, nearly $95 higher than a year ago. Even at that, Canadian feeder prices have not kept pace with the rising futures market weakening the basis. At press time it was -28.47/cwt but had been as wide as -32 at the start of October. A weaker basis, soft dollar and tight North American calf supplies revved up U.S. buyer interest driving feeder exports up 40 per cent to 304,631 head.

Rising feeder prices also pushed up bred cattle prices; however, the ratio of bred cow price to calf value is still low relative to recent years. Heading towards the end of the year bred heifer and cow prices should strengthen as producers evaluate their tax positions for the year.

Additional support will come from the strong U.S. bred cattle market.

Non-Fed Cattle Trim prices in North America remain strong giving a solid floor to cull cattle prices. Even though cow slaughter numbers have started to increase, seasonally the average price climbed over $2/cwt in the past two weeks with D1,2 cows averaging $125.13 in the second week of October, www.canadiancattlemen.ca

 DE B ’S OUTLOOK Fed Cattle Good retail beef movement, steady restaurant business, strong technical factors like the lower dollar, and tight supplies in Canada continue to support the fed cattle market. On the flip side, carcass weights have moved to levels not seen since 2012, which is adding pounds to the pipeline.

Near-term prices should trade somewhat sideways, while tighter supplies coupled with an increase in middle meat demand should push cash prices up as we move toward the holidays.

Feeder Cattle Many cattle have been forward sold through private sales leaving fewer cattle to trade on traditional markets. This lighter volume should support the feeder market moving forward.

Ample feed grain supplies and the resulting lower cost of gain are other positives, along with a softer dollar, that supports the U.S. demand for Canadian calves. It’s hard to imagine feeder prices going higher; however, the fundamentals are in place to maintain a steady market moving forward.

Non-Fed Cattle In the near term, cow prices will fluctuate within the current trading range before gaining some added support toward the end of 2014 when supplies tighten and the holiday demand for beef kicks into play. High utility cow prices in the U.S. continue to put a solid floor under the Canadian market.

over $47 more than last year. Year-to-date, cow slaughter is down six per cent at 299,349 head. Canadian D1,2 cows are still trading below the U.S. utility cow price and that, coupled with the lower Canadian dollar suggests exports will be picking up. Year-to-date exports of 194,778 head were still running 10 per cent behind 2013 at last report.

Butcher bull prices continued to trend higher, jumping out of the $137-$140 range of the past two months to average $141.17/cwt. These prices are encouraging producers to sell bulls as they’re pulled off pasture and replace in the spring rather than winter them over. To date, bull slaughter in Canada is up 17 per cent over last year at 4,320 head but over 90 per cent of matures bulls sold in Canada are exported to the U.S. for slaughter. To date, exports are running 10 per cent ahead of last year at 61,227 head. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets 

C a t t l e m e n · n o v e m b e r 2 0 1 4 59

M A R K ETS

Break-even Prices on A-Grade Steers

Market Prices

180

280

170

ALBERTA

160 150

220

140

190

130

160

120 110

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

180

ONTARIO

165

130

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

130

D1,2 Cows

120 110

150

100

135

90 80

120 105

Steer Calves (500-600 lb.)

250

70 60

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

2015 2014

October 2014 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $230.95/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.66/bu.

Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.75/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . . 56.51/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . . 91.65/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163.34/cwt Break-even (March 2015) . . . . . . . . . . . . . . . . . . 176.22/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $237.56/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.96/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.47/bu.

Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 68.88/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 98.04/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.17/cwt Break-even (April 2015) . . . . . . . . . . . . . . . . . . . . 179.83/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 October 4) 2014

2013

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . 2,074,983. . . . . . . . . . 1,987,013 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 852 lb.. . . . . . . . . . . . 874 lb.

Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,385,000. . . . . . . . 25,177,000

Trade Summary Exports 2014 2013 Fed cattle to U.S. (to September 27). . . . . . . . . . . . . . . . . . . . . . . . 282,925.. . . . . . . . . . 269,782 Feeder cattle and calves to U.S. (to September 27). . . . . . . . . 290,538.. . . . . . . . . . 209,832 Dressed beef to U.S. (to August). . . . . . . . . . . . . . . . . . . . . . 318.33 mil.lbs.. . . . 286.25 mil.lbs Total dressed beef (to August). . . . . . . . . . . . . . . . . . . . . . . 453.58 mil.lbs.. . . . .401.88 mil.lbs 2014 IMPORTS 2013 Slaughter cattle from U.S. (to August) . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to August) . . . . . . . . . . . . . . . . . . 197.60 mil.lbs. . . . . 252.90 mil.lbs *Dressed beef from Australia (to August) . . . . . . . . . . . . . . 36.27 mil.lbs. . . . . . . 22.67 mil.lbs *Dressed beef from New Zealand (to August) . . . . . . . . . . 16.69 mil.lbs. . . . . . . 27.02 mil.lbs *Dressed beef from Uruguay (to August) . . . . . . . . . . . . . . 10.63 mil.lbs. . . . . . . 23.45 mil.lbs Canadian Grades (to October 11, 2014) % of A grades +59% 54-58% AAA 2 1.8 21.7 AA 28.2 8.9 A 1.9 0.1 Prime 0.3 0.5 Total 3 1.2 52.2

EAST WEST

Total graded 470,169 1,641,569

Yield â&#x20AC;&#x201C; 53% Total 11.6 55. 1 2.3 39.4 0.0 2.0 0.8 1.6 14.7 Total A grade 98.1%

Total ungraded 17,775 561

% carcass basis 82.7% 88.8% Only federally inspected plants

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C at t l e m e n ¡ n o v e m b e r 2 0 1 4

www.canadiancattlemen.ca

 market ta l k

By Gerald Klassen

Risk Sentiment Weighs on Canadian Dollar

T

he Canadian dollar has been weakening over the past month and I’ve received a few calls from cattle producers with regard to forecasts over the winter period. Fed and feeder cattle prices have been supported by the weaker Canadian dollar enhancing demand from south of the border. For the week ending September 27, year-to-date Canadian exports of feeder cattle and calves are running 38 per cent above year-ago levels while slaughter cattle exports are up six per cent over 2013. Similarly, Canadian exports of fresh and chilled beef cuts are 11 per cent above last year from January 1 to August 31.

We can see that the whole industry is benefiting from the weakness in the Canadian dollar against the U.S. greenback. Looking forward, there are a number of risks that appear to be weighing on our currency and producers should be aware of the overall economic situation driving the exchange rate.

The U.S. Federal Reserve will likely start to increase their short-term lending rate in the second quarter of 2015.

Short-term interest rates have been near 0.0 per cent since December of 2008. U.S. economic fundamentals are looking positive with lower unemployment, higher consumer confidence and favourable GDP numbers. U.S. inflation continues to run below the Central Bank’s target as wages have remained relatively stagnant. However, if hiring picks up over the next year and unemployment continues on a positive trend, inflation will also increase. Secondly, the U.S. Federal Reserve will finish the latest bond buying program at the end of October. When the central bank buys bonds, this activity drives up the price and lowers yields.

U.S. bond yields are slowly improving which suggests that U.S. interest rates will rise moving forward.

Very simply, if interest rates are higher in one country than another country, investors will move currency into the one yielding a higher return. At this time the interest rate spread between Canada and the U.S. appears to be widening. The lower risk, higher return sentiment is drawing investors away from the Canadian dollar in favour of the U.S. greenback. The Bank of Canada left the benchmark interest rate at one per cent at the latest meeting in October and has suggested a rate cut could be in the works. Canadians are carrying excessive household debt and a rate increase would have a sharply negative effect for the average Canadian. While Canadian inflation is running at two per cent, households are having to cut back on spending.

Equity markets made all-time record highs earlier in September but have since come under pressure, in line with the seasonal tendency. The fall period is usually a bearish period for equity markets and this year is no exception. U.S. consumer spending has improved

www.canadiancattlemen.ca

 Y i e l d c lass p e rc e n tag e o f Ca na d i an Cattle 1.12500

Canadian dollar weekly chart

1.10000 1.07500 1.05000 1.02500 1.00000 0.97500 0.95500 0.92500 0.9000 0.89130 0.87500

Downside potential

0.85000 0.82500 0.80000 0.77500 0.75500

Chart Courtesy of DTN Prophet X 3

04

2008 02

03

04

2009 02

03

04

2010 02

03

04

2011 02

03

04

2012 02

03

04

2013 02

03

04

2014 02

03

0.72500

04

1 Wx

throughout the year but the final quarter is usually a period of slower growth. Weakness in equity markets, which are often led by the energy sector, will continue to weigh on the Canadian dollar.

The Canadian dollar is influenced heavily by commodity prices. Crude oil continues to trend lower along with metals and especially gold. Growth in the Canadian economy has potential to come in lower than anticipated due to weaker commodity prices.This has also tempered investment interest in the short term.

Canadian fiscal policy looks positive in 2015 which will limit deterioration of the Canadian dollar. The federal deficit appears to be lower than expected and there is potential for tax cuts in 2015. U.S. fiscal policy appears to be neutral with limited government spending cuts and higher taxes. Entitlement programs have a firm hold in the U.S. which is quite costly along with recent expanded military operations.

Above is a chart of the Canadian dollar. At the time of writing this article, the market has major support in the range of 88.50 to 89. A move below this support level would make the range of 85 to 87 the next downside target. The trend is lower and failure to maintain recent strength near the 92.50 area and move above the trendline is a negative signal. A weaker Canadian dollar will continue to be supportive of the cattle and overall beef complex. 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 at t l e m e n · N o v e m b e r 2 0 1 4

61

 GOINGS ON

Sales&Events Events

October 1-2

eef Value Chain Round Table Meeting, B Delta Airport, Calgary, Alta.

3 Alberta Agriculture Hall of Fame, Ceremony, Edmonton, Alta.

3-5 Olds Fall Classic, Olds Regional Exhibition, Olds, Alta.

5 Ontario Provincial Show, Markham, Ont. 8-9 IGAC Meeting, Calgary, Alta.

10-12 Expo Boeuf, Victoriaville, Que. 15-16 Beef Industry Federation, Kansas City, Missouri

November 4-9

Farmfair International and Canadian

 ADVERTIS E R I ND EX Page Ability Pump 55 54 Airdrie Trailer Sales Canadian Angus Assoc.

54 Canadian Cattle Identification Assoc. 20, 21 Canadian Charolais Assoc.

OBC Canadian Forage & Grassland Assoc.

16 35 Canadian Gelbvieh Assoc.

Canadian Hereford Assoc.

IFC Canadian Limousin Assoc.

54 Canadian Red Angus Promotion Society 54 Canadian Shorthorn Assoc.

51 54 Canadian Simmental Assoc.

Canfax Cattle Market Forum 57 Case-IH 7 Cattlesoft-Cattlemax 28 Central Testing Laboratories 56 Cudlobe Farms 37 Farm Animal Council of Saskatchewan 53 Farm Credit Canada 19 Greener Pastures 50 Hi-Hog Farm & Ranch Equipment 54 Hill 70 Quantock Ranch 9 International Stock Foods 54 Kubota Canada 23 MC Quantock Livestock 5 Merck Animal Health 11 Merial 15 Mosaic Company 28, 42 33 Nester Livestock New Holland 17 Peak Dot Ranch IBC Plain Jan’s Inc. 54 Ridley Block Ops/Crystalyx 8 Salers Assoc. of Canada 54 Sandan Charolais 39 Saskatchewan Beef Industry 52 Stromsmoe Angus & Herefords 13 The Cattle Range 24 Tru-Test Inc. 53 Viking Auction Market Ltd. 54

62

C at t l e m e n · n o v e m b e r 2 0 1 4

Finals Rodeo, Northlands Expo Centre, Edmonton, Alta.

5-8 Agri-trade Farm Show, Westerner, Red Deer, Alta.

7-16 Royal Agricultural Winter Fair, Exhibition Place, Toronto, Ont. 13 Best of Canadian Agri-marketing, Association Awards, Westin Hotel, Ottawa, Ont. 17-19 5th Annual Canada’s Forage and Grassland Conference and AGM — “Closing the Forage Gap,” Bromont, Que. 18-19 Canfax Forum, Deerfoot Inn, Calgary, Alta.

19 Market Access Secretariat Meeting, Ottawa, Ont. 24-29 Canadian Western Agribition, Evraz Place, Regina, Sask.

December

lberta Beef Producers Annual General A Meeting, Calgary, Alta.

9-11 2014 Western Canadian Grazing Conference — “Going Beyond Sustainability,” Radisson Hotel South, Edmonton, Alta., www.wcgconference.ca 10-11 Saskatchewan Farm & Food Care Launch, Transitioned from Farm Animal Council of Saskatchewan, Sheraton Cavalier, Saskatoon, Sask.

17 Canadian Beef Breeds Council Board Meeting, Calgary, Alta.

April 6-7

Sales December 2

3

4 15

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

S tromsmoe Hereford & Black Angus 30th Annual Production Sale, at the ranch, Etzikom, Alta.

15th Annual Cudlobe Bull Sale “Real Bulls for Real Cowboys,” Foothills Livestock Auction, Stavely, Alta.

Peak Dot Ranch Ltd. Fall Bull & Female Sale, at the ranch, Wood Mountain, Sask.

Sandan Charolais Spring Calving Dispersal, at the farm, Erskine, Alta.

January 2015 31

C Quantock “Canada’s Bulls” Sale, M Lloydminster Exhibition, Lloydminster, Alta., www.mcquantock.com

31

Lazy S Ranch Bull Power Sale, at the ranch, Mayerthorpe, Alta.

1-3

January 2015

dvancing Women in Agriculture A Conference, Calgary, Alta

February 7

ill 70 Quantock Ranch “Barn Burnin’ H Bull Sale,” at the ranch, Lloydminster, Alta./Sask., www.hill70quantock.com

March 7

2 6th Annual Davidson Gelbvieh Bull Sale & Lonesome Dove Ranch Bull Sale, at the bull yards, Ponteix, Sask., www.davidsongelbvieh.com c

 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

Hi everyone. Just thought I’d share this picture of my son Gunner! He was four weeks old when this picture was taken. I’d gone to the mailbox to get the mail, and set some of the mail in his car seat so I could carry it all. Then when I saw how cute he looked with the Canadian Cattlemen magazine, I just had to take a picture. Hope you find this young cattleman as cute as I do!

— Jacy McInnis

www.canadiancattlemen.ca

Peak Dot Unanimous 375A

Peak Dot Ranch Ltd.

Fall Bull and Female Sale Thursday, Dec. 4, 2014 At the Ranch, Wood Mountain, Saskatchewan

Selling 130 Coming Two-Year Old Bulls and 1 Bred Heifer Vision Unanimous 1418 X SAV Iron Mountain 8066 BW: +3.9 WW: +66 YW: +121 M: +18 BW: 84 205 WT: 805

Peak Dot Unanimous 393A

For Sale now at the Ranch ...

Packages of Registered Cows bred to leading Peak Dot Owned Sires

Vision Unanimous 1418 His Sons sell...

Vision Unanimous 1418 X Peak Dot Hobson 459T BW: +4.2 WW: +64 YW: +118 M: +18 BW: 82 205 WT: 807

Peak Dot Unanimous 362A

Vision Unanimous 1418 X SAV Iron Mountain 8066 BW: +3.4 WW: +64 YW: +117 M: +16 BW: 79 205 WT: 795

Peak Dot Eliminator 184A

SAV Eliminator 9105 His Sons sell...

SAV Eliminator 9105 X SAV 004 Predominant 4438 BW: +1.8 WW: +55 YW: +113 M: +24 BW: 74 205 WT: 828

Peak Dot Radiance 25A

View Sale Book and Sale Cattle Photo Gallery at

www.peakdotranch.com

or phone Carson Moneo 306-266-4414 Clay Moneo 306-266-4411 Email:peakdot@gmail.com SAV Radiance 0801 X Peak Dot Bold 204U BW: +1.3 WW: +47 YW: +95 M: +26 BW: 75 205 WT: 744

CCA Sept14.indd 1

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