Canadian cattlemen

MULTI-SPECIES SILAGE 路 THE AMR DILEMMA 路 BeefWatch

THE BEEF MAGAZINE

November 2015 $3.00

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In search of

ECOLOGICAL GOODS AND SERVICES Tim Smith,

Coronation, Alta.

Publications Mail Agreement Number 40069240

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Contents canadian cattlemen · november 2015 · Volume 78, No. 11

 E N V I RO N M E N T

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Tim Smith

2016 nuffield scholar  nutrition

FEATURES 2016 Nuffield scholar: Tim Smith goes in search of ecological goods and services. . . . 10

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Multi-species silage is like free insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Look at brood cow nutrition

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It’s an investment in your heifers.

The AMR dilemma: Part 1 Searching for ways to move forward . . . . . . 34 BeefWatch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

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Multi-species silage is like free insurance

Congratulations!

To our November survey winner, Roy Lewis, Millarville, Alta.

This month’s survey is on page 62.

Cover photo: Supplied by Tammy Smith.

26

Comment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Newsmakers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Our History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Holistic Ranching. . . . . . . . . . . . . . . . . . . . . . . . . . 40 Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Research on the Record. . . . . . . . . . . . . . . . . . . 50 Straight from the Hip. . . . . . . . . . . . . . . . . . . . . . 52 Prime Cuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 CCA Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 News Roundup. . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Purely Purebred. . . . . . . . . . . . . . . . . . . . . . . . . . . 68 The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Market Talk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Sales and Events. . . . . . . . . . . . . . . . . . . . . . . . . . . 74 C at t l e m e n · n o v e m b e r 2 0 1 5

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 COMMENT

By Gren Winslow

WHO got the black eye?

I

can’t help but wonder if the scientists at the World Health Organization were surprised by public reaction to their linking processed meat and red meat to cancer.

Within hours the hashtags #FreeBacon, #Bacongeddon and JeSuis Bacon exploded to the top of the twitterverse with negative tweets outnumbering the positives by seven to one.

German agriculture minister, Christian Schmidt immediately jumped to the defence of bratwurst, a favoured food that “no one should be afraid to eat every now and then.”

Austrian agriculture minister, Andra Rupprechter posted a picture of himself eating cold cuts, and labelling the WHO report a farce.

Meat-loving South Africans who favour their beef cooked over an open barbecue didn’t expect anything to change because of the WHO report.

Similar quotes piled on from Italy where processed meat is an important part of the Mediterranean diet.

Certainly this spontaneous reaction to the negative headlines is heartening to meat industry supporters. It wasn’t a choreographed response to a carefully crafted campaign by some vegan activists. It was people reacting to a threat to their way of life.

Can you imagine a World Series baseball game with no hotdogs? Or breakfast at your favourite haunt with no bacon and eggs on the menu, or lunch without corned beef, ham or pastrami on rye? Obviously, a lot of people can’t.

It makes you wonder who collected the black eye here, the meat industry or the scientific community?

The North American Meat Industry believes it’s the latter. NAMI vice-president of scientific affairs, Dr. Betsy Booren had some of the harshest criticism of the WHO’s International Agency for Research on Cancer (IARC).

She claims this expert panel showed a bias in classifying red and processed meat as cancer hazards when it ignored many of the studies that showed the health benefits of a balanced diet that includes meat.

The panel does seem to have a predilection for finding cancer wherever it looks; of the 985 agents it has examined so far, all but one product, a chemical in yoga pants, have been classified as theoretical hazards for cancer. Sunshine, alcohol, coffee and many of the things that give pleasure to life make that list along with red meat and bologna.

In this case the researchers reviewed 800 epidemiological studies and ended up focusing on a few cohort stud-

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ies focused on colorectal cancer. Positive associations were reported in 12 of 18 studies. A statistical analysis of the data in 10 of them showed a 17 per cent higher risk of bowel cancer when patients ate 100 grams of red meat per day and an 18 per cent higher risk in those eating 50 grams of processed meat per day.

What’s the risk that you will get colorectal cancer if you don’t eat red and processed meat? About the same.

The Canadian Cattlemen’s Association puts it at one per cent, based on the 100 grams per day example. To start with, Canadians eat about half that, closer to 50 grams of red meat per day on average. Then you mix in the low risk that you would ever get colorectal cancer.

The American Society of Clinical Oncology estimates five per cent of those with an average risk of colorectal cancer actually get sick.

There is no discussion in the WHO report about what else these people consumed, whether they were young or old, healthy or run down. Just that they said they ate this amount of meat every day and had cancer of the bowel.

What about alcohol, or coffee, or sugar (another hazard)? The IARC attributes 34,000 cancer deaths per year to diets high in processed meat, and 600,000 to alcohol.

So, one wonders, how many of those 34,000 also drank wine or beer with their meals?

How they came up with a correlation for a single ingredient in a diet and turned it into a cause of a particular cancer is a mystery.

The mystery is even deeper when it comes to red meat which is given a 2A rating as a cancer hazard, meaning there is limited evidence of it causing cancer in humans but sufficient evidence that it does in experimental animals. It’s “a positive association” but they can’t rule out chance, bias or confounding reasons for these observations. This is the basis of worldwide headlines stating red meat causes cancer?

Perhaps the fog will lift when they publish their full monograph, along with their methodology, next year.

The only real question for the meat industry is how the public will react to this announcement over time.

The first response has been favourable. Whether that will weaken when the anti-meat gang has a chance to mobilize their fear machine time will tell.

I remain hopeful that common sense will prevail.

The bacon-loving humour writer for the Winnipeg Free Press, Doug Speirs sums it up nicely: “So if you want to panic and get your knickers in a twist, sure, go ahead and go cold turkey on bacon. You won’t live any longer, but it will definitely feel like it.” c

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 THE INDUST RY

NewsMakers Beverly Yee, a former assistant deputy minister in municipal affairs is now Alberta’s deputy minister for agriculture and forestry, replacing Jason Krips. Yee has worked for the provBeverly Yee ince since 1994 holding several executive position. Krips moved on to become the deputy minister of the new Ministry of Economic Development and Trade to work with MLA Deron Bilous, the first minister of the new department.

Saskatchewan beef producer Jack Hextall has been re-elected chair of the Canada Beef Inc., the industry’s marketing arm.

Linda Allison, representing B.C. producers, is vice-chair.

Jack Hextall Lonnie Lake representing the retail and food-service sector chairs the finance committee; Arden Schneckenburger of Ontario heads up the governance committee; packer Mike Kennedy chairs the planning and priorities committee and Alberta producer Doug Sawyer chairs a new national checkoff committee. The remaining members of the board are: John Schooten from Alberta; Heinz Reimer, Manitoba; Kirk Jackson, Quebec; Jennifer MacDonald, New Brunswick; Larry Weatherby, Nova Scotia; John MacDonald, P.E.I.; Wesley Batista, Arthur Batista, Anthony Petronaci, Canadian Meat Council and Dwight Greer, Canadian Association of Importers and Exporters.

During the 2015 Restaurant Carnival for the Hotel, Restaurant and Catering (HORECA) industry meetings in China, Canadian beef was named the “Most Popular HORECA Product in 2015” by RESTAURATEUR magazine. Also recognized by the magazine was a chef recruited by Canada Beef, Chef Oliver Pan, who took home the “Top Recipe” award from RESTAURATEUR for his grilled Canadian beef top sirloin butt.

Canada may have to wait a little longer than expected for the World Trade Organization (WTO) arbitration panel decision regarding U.S. country-of-origin labelling (COOL) retaliation. Although the panel’s final report was set for November 27, it is now expected to release its decision on an authorized

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amount for retaliation before the end of the year. That decision will be final and not subject to appeal, enabling Canada and Mexico to proceed to implement the tariffs.

Three new directors were added to the Canadian Roundtable for Sustainable Beef (CRSB) at its recent annual meeting in Saskatoon. The three are: Ian Barnett with the Nature Conservancy of Canada; Trevor MacLean with Scotiabank and Page Stuart with the Alberta Cattle Feeders’ Association.

The CRSB is composed of representatives from 55 organizations with a common interest in the betterment of the beef industry.

Dominic Johnson has been appointed Holstein steer project co-ordinator with Atlantic Beef Products (ABP) in P.E.I. He is being asked to get this program up and running with the aim of bringing 60 to 100 Holstein/dairy-type steers per week into the beef plant over the next 18 to 24 months.

Johnson is a past provincial livestock nutritionist and until recently the owner/operator of Balance It Feeds on P.E.I .

Wendy Bennett, executive director of B.C.’s Farm and Ranch Safety and Health Association is the new chair of the Canadian Agricultural Safety Association. She replaces Dean Anderson, CASA’s strategic adviser on agriculture initiatives, workplace safety and prevention services, who remains on the executive as treasurer. They will be joined by first-time CASA board members Carolyn Van Den Heuvel, farm safety co-ordinator with Farm Safety Nova Scotia and Jeff Shaw, farm co-ordinator with SAFE Work Manitoba.

University of Alberta researcher Dr. Michael N.G. James and colleagues are using synchrotron techniques at the Canadian Light Source Inc. to develop three-dimensional structures of the prion molecules in order to see the differences between how the healthy protein folds and how unhealthy forms might develop. The ultimate goal is to develop small molecules that would bind to the prion proteins in their normal form and prevent them from being converted into infective forms.

Viterra has contributed a $100,000 gift to Lethbridge College to fund scholarships and awards for students in a variety of programs;

$25,000 is specifically directed to awards for First Nation, Métis and Inuit students. Viterra is also a sponsor of the Cor Van Raay Agricultural Business Risk Management Case competition, which is a collaborative effort between Lethbridge College and the University of Lethbridge designed to expand students’ knowledge in the areas of agriculture and business on a global scale, while introducing them to key players in agribusiness.

The Five Nations Beef Alliance, representing beef producers in the U.S., Canada, Mexico, Australia and New Zealand is renaming itself the International Beef Alliance with the addition of national cattle organizations from Brazil and Paraguay to the group.

Grade 12 students in Saskatchewan who want to compete for the provincial 2016 Agriculture Student Scholarship need to submit a three-minute video or a 1,000word essay on the theme Stewards in Sustainability. Ag Minister Lyle Stewart says the theme was chosen to get young people thinking about the relationship between agriculture and the environment. The competition is open to Grade 12 students or recent graduates entering agriculturalrelated post-secondary studies in 2016. A $4,000 scholarship and three runner-up scholarships of $2,000 will be awarded.

Details are available on the department’s website www.agriculture.gov.sk.ca.

Ontario Corn Fed Beef was recently featured at 40 Kinsho Stores in Osaka, Japan in a joint promotion with Canada Beef, Ontario Corn Fed Beef and Kinsho Store Co. Supermarkets.

This premium beef brand is owned and operated by Ontario beef farmers. Kinsho Stores has been selling the Ontario beef product since May of this year in Osaka stores. The promotion featured a consumer cooking class co-hosted by Ontario Corn Fed Beef and Canada Beef in conjunction with Kinsho Stores to emphasize the quality and safety assurances of Canadian beef and demonstrate the flavour of Ontario Corn Fed Beef to Kinsho consumers who used the label from their meat purchase to register for the event that was held at a state-of-the-art culinary facility in Osaka. A second event featured Mr. BBQ, a celebrity chef and entertainer, for 150 consumers who entered their meat label into a lottery to gain a ticket. c

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 our histo ry

Canada’s 1949 Royal

By Lorne Stout, Calgary, Alta.

Abridged from the December 1949 issue of Canadian Cattlemen

C

anada’s Royal Winter Fair at Toronto is more truly an allCanadian Royal than most of us in the West realize unless we have been fortunate enough to have attended the Royal. It’s big, but more than that, it’s a show window of the nation, not only for the best in cattle, but in horses, seeds, poultry, butter and flowers.

Not to overlook the spectacular horse show — and with jumping teams from Ireland, Mexico and Chile, along with the Royal Canadian Mounted Police and their colourful Musical Ride, a show for precision and timing unsurpassed in the world.

The Royal runs for eight days, and they are hectic and busy days for the exhibitors, such as the top Alberta breeders of Hereford, Shorthorn and Aberdeen-Angus who more than held their own in the judging against the stiff competition that marked every class and every section.

The Royal opened with a smashing triumph for Alberta and the West when Ed Noad of Claresholm who makes a habit of finishing cattle just a little better than anyone else, swung through to capture the award for the Grand Champion Steer. His Shorthorn “Socks of Broadacres” took the Shorthorn Steer Grand Championship in which Alberta had both tops, with the University of Alberta entry winning the Reserve title. “Socks” then was picked by judge J.W. Grant MacEwan as the Grand Champion Steer, beating out the Herefords in which winners were F.W. Reicheld Jarvis, Ontario and Warren Smith of Olds, Alberta, the Aberdeen-Angus won

by Lloyd Mack, Rockwood, Ontario and the University of Alberta, and beating as well, Ed Noad’s own two Grand and Reserve Champion Cross-breds.

Crawford-Frost Winnings

First double-barrelled Championship for Alberta and the West at the Royal was the Barley and Oat crowns, world championships won by John Eliuk of Hairy Hill, Alberta. And that set the stage for a repeat performance of Alberta’s top Hereford breeder, Arthur Crawford-Frost of Nanton. He swung into

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the judging of the Herefords and when the smoke cleared had won about every award the Royal had to offer. Repeating his double triumph in 1948, W.A. Crawford-Frost with H.P. Royal Regent 5th won the Senior and Grand Champion Bull and came back the following day to take the Grand Champion Female ribbon with Alisa Standard C47th.

In all, Caerleon Ranch of Nanton won nine first-place ribbons in the Herefords.

Others from the West, as the saying goes, were also in there pitching. Richardson Stock Farms of Winnipeg had second for females two years and over and went on to win the Senior and Reserve Championships. Earlscourt Farms of Lytton, British Columbia, duplicated the performance for the Bulls getting the Junior Reserve Championship, and Victor Watson of Airdrie, Alberta had the Reserve Grand Champion A.B. Domino 20th, one of six Championship ribbons for Bulls that failed to go to the West was the Junior Champion, won by Hy-Point Farms of Romeo, Michigan.

Judge of the Herefords was Dr. A.R. Weber, Manhattan, Kansas, and he faced a difficult job with the large entries. It was as bad for James Napier of Northfield, Ohio who faced the Shorthorn classes, some with a score of entries. But he did a fine job, in the opinion of western cattlemen, for he placed the Dafoe, Saskatchewan, animal from William “Bill” Harrison as the Grand Champion Shorthorn. Killearn Norman 8th shown by Mr. Harrison is a fine solid Red Bull, bought by him from the Gallinger herd at Edmonton earlier in the year for $3,700. He won the Summer yearling class, went on to win Junior Championship and won the Grand Championship and Supreme Shorthorn at the Royal, against the Grand Champion female, Naemoor Cinderella 3rd, shown by Grant Campbell of Moffat, Ontario.

Bill Harrison had the only Western Bull in the running but Richardson Stock Farms of Winnipeg did well in the Shorthorn females, winning the Senior Grand Championship, the Junior Reserve ribbon, and the Reserve Grand Champion

Other Western Shorthorns to place well included Lord Rannock shown by T.G. Hamilton of Innisfail, second in the Junior yearling bulls. In the Summer yearlings, P.W. Stefura, Chipman, Alberta had 6th and E.J.C. Boake, Acme, 8th. Wotherspoon Brothers of Melville, Saskatchewan, won first for Senior calves, T.G. Hamilton was 3rd, and Richardson Farms 5th.

Grant “Shorty” MacEwan was one of the West’s prime attractions at the Royal, giving a sparkling display in judging the beef cattle, steers and junior entries. He made a particular hit with scores of Ontario Juniors in judging their steers for the King’s Guineas class, which started out with more than 2,000 animals and wound up with 120 animals in the finals at the Royal.

They were judged in three breed classes, Herefords, Shorthorns and Aberdeen Angus, and after each Section, Grant gave the junior contestants a review of his judging, his reasons for placing the top animals in their positions, an informative chat on the strong points and weaknesses of the top half a dozen steers and drew a round of applause after each commentary.

For the winner, Duncan Campbell, the King’s Guinea, augmented by the Ontario Department of Agriculture was worth $250 plus the value of the husky steer at the auction sale.

The King’s Guineas, while an all-Ontario junior show, drew the attention of the westerners attending the Royal, for it brought 120 Steers into a single competition, giving the youngsters a chance to display, and most of all to learn their showmanship. It could be seen watching the actions and expressions of the youngsters that they were enjoying every minute of an experience never to be forgotten. Most of all they were finding in their farming and cattle raising a thrill of accomplishment not to be matched in the West, where youngsters have the opportunity to compete only with the other Juniors of their own calf club. c For more of the past from the pages of our magazine see the History section at www.canadiancattlemen.ca.

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 COVER STO RY · e n v i ro n m e n t

By Debbie Furber

2016 Nuffield scholar: Tim Smith goes in search of ecological goods and services

Tim Smith inspects this year’s brassica forage with his daughter Katelyn.

I

f you are reading this magazine, you might someday find yourself applying for a Nuffield scholarship. It was articles and presentations at conferences

by Nuffield alumni that first drew Tim Smith’s attention to the program and he is now preparing to embark on an opportunity of a lifetime as a 2016 Nuffield scholar.

Smith is one of three Canadians to receive a Nuffield Canada scholarship of $15,000 to help with expenses for international travel to study a topic of choice, gain new insights on culture, politics and challenges of agriculture in general, and share a Canadian perspective with those he meets along the way.

Smith’s chosen topic is ecological goods and services (EGS) provided by cattle ranch-

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ing. He will be studying how other cultures recognize the benefits and value of pastures and the use of ecosystem service programs.

“The (Nuffield) program interested me for personal development and to help the industry. It’s another chance to showcase beef in our culture. I hope some of my results will help in developing proactive policy by aligning regulations and incentives to environmental outcomes,” says Smith, a beef producer from Coronation, Alta., who serves as an elected representative to Alberta Beef Producers and one of its representative on the Canadian Cattlemen’s Association (CCA).

The CCA defines ecosystem services as the benefits that society derives directly or indirectly from healthy functioning ecosys-

tems, including air, water, soil and biodiversity. Its current policy is to “encourage government to develop a program that local groups could apply to in order to access seed money to support regional ecosystem service programs that are in line with the (stated) principles.” Among the key principles are that ecosystem service programs must respect the rights of the producer, be voluntary and that compensation should be market based to acknowledge that society benefits from ecological services, whether existing, enhanced or new.

Smith looks back to a time even before EGS became a common acronym in beef Continued on page 12

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Continued from page 10

circles to pinpoint when he first realized the value of pasture systems in providing ecosystem services for public good.

“My interest started with the first Growing Forward program and some of the stewardship incentive programs that became available for management practices to improve long-term water quality,” he says. He feels that improving water quality, nutrient

cycling, protecting biodiversity and mitigating climate change are key ecological goods that pasture systems provide and these will be priority topics during his travels.

Within days of being notified that he was the recipient of a 2016 scholarship, Smith began questioning Nuffield alumni familiar with EGS policies and programs in other countries to begin arranging his international study route.

“Initial recommendations seem to be

pointing to Europe and Australia, with an interest in South America and the U.S.,” he says. “These are places where there appears to be programs developing with stakeholder integration for sustainable use of grasslands.”

In Germany and Australia, for example, there are programs that use reverse auctions for buying ecosystem services. The Brazilian Confederation of Agriculture and Livestock Farming states that Brazil is a “hotbed of ecosystem services” and is testing the feasibility of market-like payments for ecosystem services.

The ESMERALDA project in the European Union is researching mapping, policy, decision-making methods and data collection for sustainable management of ecosystems and services. A working group of the United Nations’ Global Agenda of Action in Support of Sustainable Livestock Sector Development on Restoring Value to Grasslands has been looking into ecosystem services in North America, Europe, Australia and New Zealand. He’ll also be connecting with people across Canada to get up to speed on what’s happening on the home front insofar as challenges and successes of EGS programming.

Nuffield member countries organize five global focus tours each year. Smith is considering the February 24 to April 14 tour that would take him to England, France, Germany, the U.S., Kenya and South Africa to tour many types of farms, agribusinesses and research institutions to hear from experienced managers and experts in fields such as international ag policy, soil health, postGMO technology, genomics, communicating about innovation, marketing, ag advocacy and leadership, data in agriculture, politics and power and public policy.

First off, he will join new scholars from around the globe for a week of tours, workshops, speakers and networking in February 2016, before parting ways to carry out their personal quests.

Each will spend six consecutive weeks and 10 weeks in total over the next two years travelling to selected destinations to study their topics and then prepare a report to share with all on the Nuffield Canada website.

Other member countries in the Nuffield scholarship program include Ireland, France, the United Kingdom, New Zealand, Australia and Zimbabwe, with the Netherlands as an associate and an international chapter open to applicants from any country. The program dates back to 1947, so there is now a worldwide network of more Continued on page 14

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www.canadiancattlemen.ca

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e n v i ro n m e n t

Continued from page 12

than 1,500 Nuffield alumni on whom new scholars can rely for assistance.

Nuffield Canada chair and 2011 Nuffield scholar, Kelvin Meadows of Moose Jaw, Sask., says there isn’t a record of how many scholars from other countries have visited Canada, but it would be fair to say 20 or 30.

Nuffield Canada is preparing to begin annually hosting two global focus tour groups of approximately eight scholars that will be open to other interested scholars travelling apart from the global focus group.

Nuffield scholars come from all walks of primary agriculture, the agri-food industry and governance and have to be willing and able to take time away from their everyday duties.

That’s not a problem for the Smith household because the family is quite accustomed to filling in for Tim when he’s away on ABP and CCA business. His wife Tammy has travelled a few miles as well to meetings and events with Tim as well as through her involvement with the International Agricultural Exchange Association, for which she recently stepped down as international president. Their son Jaydon, is their right-hand man and currently studying ag business management at Olds College with plans to return to the family ranch. Their daughter, Katelyn, is employed with Crop Protection Services at Coronation and fills in as needed on days off. Riley drives truck on the custom silage crew and David works away from home.

Back home

The Smiths have built their herd up to 800 cows and run a custom silaging business

from the ranch they started on a small parcel of land that was part of his grandparents’ farm in 1915. His parents never ranched, but the cattle on his uncle’s farm sparked his interest in beef cattle. He went on to complete a degree in agriculture and returned to the family homestead with Tammy in 1990.

The native rough fescue pastures on this central Alberta ranch are complemented with tame forages for hay as well as oats and barley for swath grazing and silage.

This year they added diversity with a mix of Winfred and Hunter forage brassicas and spring triticale planted late in June with the intention of using the standing crop for latesummer grazing. As weather would have it, the early dry spell took a big bite out of pasture and hay production and they ended up grazing hay land to carry the herd through.

Rainfall after rainfall from July onward brought the perennial pastures back to life and the brassica/triticale field wasn’t needed for summer grazing. It will still be used to extend the grazing season, but September plans called for swathing it before a killing frost.

The forage brassicas from Graeme Finn of Union Forages at Crossfield, Alta., are turnip and kale hybrid annuals with high protein content and fall frost tolerance suited to multiple grazings. Triticale complements it nicely as an excellent energy source with lots of biomass.

Smith is considering planting a crop with several species in the mix next year. Nuffield alumni Clayton Robbins in Manitoba has suggested including chicory and plantain for added benefits.

“Any time we can improve production efficiency, using fewer resources to produce

MOBILE

1

more, that’s being environmentally responsible,” Smith adds.

You can follow Smith as he shares Canadian perspectives and gains insight into EGS around the globe @Tim_Smith68 and through his blog linked to the Nuffield Canada website. You will also find profiles and reports of other present and past scholars.

Starting in 1950 with funds from Lord Nuffield’s endowment, the first Nuffield Canada scholars were John McLean of Eureka, Pictou County, N.S., and Orrin Hart of Claresholm, Alta. Since the middle of the 1970s, the scholarships have been funded through memberships and donations.

Glacier FarmMedia, a sponsor since 2012, commits $15,000 annually to support one scholar. Smith is this year’s recipient.

The first recipient was Becky Parker of Picton, Ont., who is entering her second year of exploring models of agricultural career education and collaboration between industry groups, youth organizations and the school system.

Grain Farmers of Ontario came on stream this year sponsoring Tony Balkwill, an independent agronomist and farmer from Paris, Ont. Clair Doan, a turkey and grain farmer from Norwich, Ont., rounds out the 2016 Nuffield Canada selections.

Applications are due April 30 each year.

The only prerequisite is at least five years in some facet of agriculture, whether it be as an owner, manager, employee or bureaucrat, and “the pledge that this opportunity will be used to contribute to and innovate agriculture in Canada.”

For more information visit www.nuffield.ca. c

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15-01-27 14:07

 feeding

By Heather Smith Thomas

Take precautions when feeding salvage crops

I

n drought years it’s often hard to locate adequate forage for cattle so producers sometimes turn to alternatives like drought-stressed pulse, oilseed or cereal crops that normally wouldn’t go for feed.

These emergency feeds can be a godsend in a dry year, but both Barry Yaremcio, a beef and forage specialist with Alberta Agriculture and Forestry and Dr. Bart Lardner with the Western Beef Development Centre and the University of Saskatchewan urge you to be mindful of the common pitfalls with salvage crops.

Producers in this situation for the first time often ask Yaremcio if they might reduce the nitrate content by 25 to 35 per cent by turning it into silage.

The research, he tells them, basically says that when the nitrate drops that much the quality of the silage will be bad, as well. You are better off to do a good job of packing and sealing to get proper fermentation, then double-check the nutrient content as the silage comes out of the pit. “Then if you have to deal with nitrates, you can modify your ration to adjust for nitrate content,” he explains.

NITRATES

LOST NUTRIENT QUALITY

“If you plan on using something like this, I recommend a feed analysis, to see what the protein and energy density might be, and some of the anti-quality factors that would make it not so good for livestock,” says Lardner.

“There might be a drought-stressed crop that is high in nitrates, for example.We often see nitrate accumulating in oats and other crops,” he explains.

In this case you need to figure out the level of nitrate in that crop, and how much, if any of it, can be safely fed.

“Generally the level is about 0.5 per cent nitrate in that crop, and so we have to dilute it when we feed it to cattle — to about onethird of the normal ration per day. If you know what you are dealing with you can dilute it down with some other feeds that are not high in nitrates,” says Lardner.

Crops mature much quicker than normal in dry, hot conditions, so testing becomes very important with drought-stressed plants.

Book values don’t mean much under these conditions as shown by some work Yaremcio did on 13 grass species near Edmonton in 1992-93. “We cut the stands every week, starting the first week of June, finishing in September. One year was normal, the other was a drought year. The loss of quality and drop in protein and energy content started about three weeks earlier than normal in the drought year,” says Yaremcio.

“The stands were a bit shorter, but looked normal. From the feed test results, the plants were losing 1.0 to 1.5 per cent protein and about five per cent energy per week after heading. The forage looked OK, but generally the quality was much lower in the drought year.

“If a person is cutting sloughs for hay,

16

C at t l e m e n · N o v e m b e r 2 0 1 5

or old hayfields/pastures that haven’t been cut for several years, the quality of forage will be quite low, due to the old, dead material mixed in with the new growth. The quality could be as low as straw and should be treated similarly,” Yaremcio says.

Quality also becomes important when you are looking at using or purchasing some two-year-old hay. “When hay is stored outside, and not protected from weather, it will deteriorate. You may lose up to 25 per cent of the protein and 15 to 20 per cent of the energy. If it was baled at 14 per cent protein, you might have only 10 to 11 per cent protein two years later. You need to retest older forage before using it in a feeding program. Bale weight on large round bales may drop by at least 200 pounds, compared to when it was made,” he says.

“Some people have done digestibility studies on two-year-old hay, and found the digestibility is reduced about 10 per cent.

The nutrient content on a feed test report may need to be discounted a bit because of the lower digestibility,” he says.

Larder says a number of people in his part of Saskatchewan have been putting up drought-stressed canola. Canola hay can be surprisingly good quality. It can also accumulate nitrates. So do a feed test, advises Larder.

Protein levels in canola cut at mid-pod Continued on page 18

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f e e d i ng

Continued from page 16

stage average about 15 per cent, with energy around 60 per cent. When fully podded it is stemmy, usually with little or no leaf and may be down to 10 per cent protein and 50 per cent energy.

“It is less palatable than a typical grass/ legume hay, adds Larder. “You have to make sure you build it into the diet at a blended level at something less than half the diet, and pay attention to minerals. Make sure the cows are on a good mineral program if you are looking at drought-stressed canola as a forage source,” he says.

“There are other crops out there that might work. One year we had a droughtstressed lentil crop, which is one that typically would not be utilized in a livestock feeding program. Since lentils are an annual legume, this crop might occasionally be another alternative. In the case we had, the lentils were not put up as hay, but simply grazed in the field by cattle. There can be some issues there as well, with certain levels of anti-quality factors, so do a feed test,” cautions Larder.

Whatever crop you are looking at his

advice is to do a feed test and find out what you are dealing with first — and realize that in a drought situation the plants will tend to increase concentration of various constituents; they are not what you might normally expect.

have someone check them out for you and see what they are. A good source of information is the Canadian Poisonous Plants Information System website maintained by the Canadian government.

WEEDS

“One thing we’ll be faced with in some drought areas this year is a lot of lightweight grain,” says Yaremcio. Protein levels in drought-stressed grain will be different than normal just because the grain is lighter.

Some work done in the mid-1980s at the University of Alberta by Dr. Gary Mathison tested barley that was 36, 48, and 54 pounds to the bushel. They found that feeding lightweight barley, at 36 pounds to the bushel, had a two per cent reduction in feed efficiency compared to 48-pound barley. For cows, and backgrounding rations, lighter-weight grain will work. If you have any questions, consult with someone who can help,” says Yaremcio.

“One of the problems we’re facing right now is that some of the crops that did not germinate properly in the spring are full of weeds,” says Yaremcio. “Most weeds are not a problem and make good-quality forage or silage.

But some commonly found in pastures such as water hemlock or seaside arrowgrass can contain toxins that kill animals. With forage in short supply, animals may graze areas that are usually avoided,” he says.

Other weeds are nitrate accumulators and may or may not be toxic. “Kochia and lamb’s quarters, for example, can have high levels of oxalates, which reduce the animal’s ability to use the calcium that’s present in those feeds. Silage or greenfeed containing a lot of weeds should not be fed at more than 50 per cent of the total ration.”

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www.canadiancattlemen.ca

feeding

drought-damaged forages, the important thing is to introduce the new feed gradually.

“If you are changing from a hay or greenfeed to canola silage, for example, include only about 25 per cent silage (dry matter basis), in the total ration for the first inclusion, says Yaremcio.

Keep it at that level for the first three or four days, to allow the animals to adjust to the different texture and taste. You will see a difference in the manure when going

from a greenfeed to the canola silage. It will be looser — softer and wetter. If the manure is not watery and appears normal, it is safe to increase the silage to 50 per cent of the ration then up to whatever level your feed test tells you is safe. This allows for a gradual change in the population of rumen microbes so they can handle the new feed.

“When you increase the grain in a ration, it should be increased no more than one pound every second day. If you are changing from

eight to 12 pounds, you need to take at least eight days to accomplish this. Again, watch the manure. If something is going wrong and the animals are experiencing acidosis or digestive upset, the manure will indicate there is a problem. If the manure gets loose when you are increasing the grain, reduce the amount being fed by about three pounds and let the cattle settle there for a week and then try increasing it again, no more than one pound every two days,” says Yaremcio. c

process i ng

Check the pellets too “In a drought situation there is always a huge demand for pelleted products,” says Dr. Bart Larder of the Western Beef Development Centre. “Many producers are trying to build a ration that’s 50/50 straw-hay or a 50/50 straw greenfeed diet and then use a supplemental range pellet purchased from a feed mill.

Those pellets usually consist of either barley or peas, with grain screenings added. The screening ingredients in those pellets might sometimes bring in the unwanted issue of a fusarium or ergot problem,” says Lardner.

When in doubt test, and with salvaged feedstuffs there is always doubt.

“We had calves on a research trial last winter and they were doing fantastic on the first load of pellets during the study. Then we brought in a new truckload and the calves went off feed. We sent test samples away to a lab and the report came back showing high levels of fusarium. When feeding drought-stressed crops, be alert to any unusual activity or signs of illness, or going off feed,” he says.

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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).

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REV NEW FORMAT VERTICAL

BOV_15108_Zactran_Thera_En_hfpVert_Ccattl.indd 1 dossier : BOV-15108

client : Merial

description : Annonce Zactran anglais

date/modif. rédaction

août

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2015-08-11 03:21 PM relecture

D.A.

épreuve à

100%

 Nutritio n

By Ron Clarke, DVM

Look at Brood Cow Nutrition

M

ost producers start unpredictable western Canadian winters by reckoning feed supplies against cow numbers, judging whether the hay pile will get the herd through until pastures are ready next spring. In the hightech environment of today, it’s easy to overlook the simple things like the longterm implication of monitoring body condition of brood cows through winter.

Inadequate nutrition during gestation creates lingering reproductive losses for the entire herd. More specifically, there is a loss of reproductive momentum measured as increased calving intervals, open cows and failure of replacement heifers to be successfully integrated into the herd. Thin cows at parturition affect calf-weaning weights in the fall and long-term calf health. Post-calving reproductive performance is seriously affected when cows are thin at calving. The importance of fetal programming and the role it plays in long-term development of replacement heifers born from dams nutritionally compromised during gestation is just starting to be understood.

20

A critical element of managing brood cow nutrition through winter comes down to managing energy reserves of individual cows and groups of cows based on maturity and body condition. A practical way to estimate energy reserves is by hands-on evaluation of skeletal fat deposits through body condition scoring. Body condition scores (BCS) are based on a scale of 1 to 5, with a 1 being extremely thin and 5 obese. BCSs at key times through a production cycle reveal if cows are losing or gaining body condition. For optimal performance mature cows should be maintained at a BCS of 2.5 to 3.0 and firstcalf heifers at 3 to 3.5 at calving and through their first breeding season.

Producers should talk to their veterinarian or beef extension specialist for more information on body condition scoring. The Beef Cattle Research Council (BCRC) website www. beefresearch.ca offers videos, fact sheets and other tools that describe how to do it.

Assessing BCS in the winter is critical because it corresponds to the third trimester of pregnancy for most spring calving herds.

The majority of fetal growth occurs during the

C at t l e m e n · N o v e m b e r 2 0 1 5

last trimester. The template for many organ systems is established during this period, including things like the structure of skeletal muscle and future ovarian function. Nutrient requirements of the cow sharply increase, especially through the last 45 days prior to calving. If body condition scores indicate cows are thinner than desired, the plane of nutrition can be altered, but adding weight through the last trimester requires close attention to the adjustment of energy and protein. To improve BCS by one point in 90 days — about 200 pounds for a 1,400-pound cow — requires 20 per cent more energy; to increase one point in 60 days requires 30 per cent more. It’s not a bad idea to seek help in balancing rations if these kinds of adjustments are called for prior to calving.

After calving, the nutrient demands associated with lactation make it more difficult and expensive to add condition. Eighty-two days after calving represents the most crucial period in the beef cow’s year. Not only must she nurse a calf, she must be ready to rebreed within 80 to 85 days to calve at the same time next year.

www.canadiancattlemen.ca

Nutritio n

A common misconception regarding pre-calving nutrition is that feeding cows too well results in increased calving difficulty. This is seldom the case. Some overconditioned cows may deposit fat in the birth canal, which can lead to calving difficulty. The bigger problem lies with underfeeding cows prior to calving. Thin cows produce lower-quality colostrum and overall calf survival is reduced. Research shows that the plane of nutrition prior to calving influences calf vigour. Calves from cows on a maintenance or high plane of nutrition stand and nurse more quickly.

With everything else staying equal, a two per cent improvement in reproductive efficiency lowers cost of production by $16.50/ head (2012 figures).

The replacement heifer

What frequently gets overlooked is the longterm impact brood cow nutrition has on growth rate of progeny and future development of heifer replacements, two keys to production and profitability. Decisions made around calving time contribute to extended improvement in the performance

of heifer progeny. Heifers retained as herd replacements from groups born the first 21 days of calving season showed a 12 per cent higher pregnancy rate and 15 per cent more calves born during the first 21 days of their first calving season. Overall lifetime production of the breeding herd can be enhanced. A cow that consistently calves in the first 21 days of her eight- or nineyear stay in a herd will produce the weaning weight equivalent of an additional 1-1/2 to two calves in her lifetime compared to a cow that starts late and stays late. Sixty-one per cent of cows in high-production herds calve in the first 21 days of the calving period with 85 and 94 per cent of calves born by day 42 and 63 days respectively.

The objective with repalacements is to develop an adequate number of heifers that reach puberty and cycle regularly at the start of their first breeding season. Because of her increased nutritional needs, a first-calf heifer should remain on the heifer development ration until she breeds back and weans her first calf.

A replacement heifer represents the future profitability and genetic improve-

ment of the herd. Assuming a restricted breeding season and a somewhat static weaning date each year, the age of calf at weaning has a large impact on pounds of calf weaned. This is particularly important if calves are sold at weaning. Therefore, it is important that heifers conceive early in the first breeding season. Researchers at Montana State University concluded heifers that conceive the earliest contribute the most to the efficiency of the herd.

A replacement heifer is costly to develop.

She must be managed and fed separately from the rest of the herd. However, since she will not produce any economic return until she is approximately 2-1/2 years of age (when she weans her first calf), she is also an easy target for mismanagement. The expense involved in her development only adds to the importance of the future calves weaned from this properly managed firstcalf heifer. It is more economical to spread her development costs over several calves, rather than one if she happens to show up open after her first calf.

Continued on page 22

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Continued from page 21

The effect of body condition scores on production

Fetal Programming

Recent research shows that the maternal environment created by a pregnant cow and the influence it exerts on fetal development affects future performance of the newborn calf. This concept, called fetal programming, has important implications for beef production systems.

The weight and body condition of pregnant cows is dependent on a given plane of nutrition. A cow’s nutrient intake directly impacts nutrition of the developing fetus.

Nutrient intake for the beef cow varies considerably from year to year depending on the growing and harvesting conditions of forages. There are also dietary changes that typically occur during critical times of gestation as cows transition from grazing to stored feeds. There are fluctuations in energy needs as temperatures decline from fall into winter.

The end result is that pregnant cows often undergo significant changes in body weight and fat level during the course of gestation, and these changes often vary from year to year.

BCS

Fall pregnancy rates (%)

Calving interval (days)

Cows exhibiting estrus 60 days after calving (%)

Weaning weight — lb. (kg)

Calf death loss (%)

1.5

43

414

66

375 (170)

8

2

61

381

92

460 (209)

3

2.5

86

364

92

515 (234)

3

3

93

364

100

515 (234)

3

3.5

95

—

100

—

—

4

75

—

—

—

—

Source: www.bodyconditionscoring.ca

Research has shown that major changes in the level of energy and protein in the diet of cows in late gestation affects birth weight, vigour, and health status of the newborn calf.

More recent research shows that cow nutrition through early gestation may have an impact on traits exhibited much later in a calf’s life. As well, dietary intake during late gestation may exert an influence on calf performance much later down the road.

Optimal nutrition through the calendar year governs the success of heifer development. The ideal feeding program is one that recognizes the ability of the

beef cow to safely and economically gain and lose body condition. Benefits from doing this well get carried forward into a heifer’s years as a brood cow. Performance gains show up as reproductive events like postpartum interval, services per conception, and calving interval. Milk production, weaning weight, and calf survival get added to the mix.

In this way, monitoring energy reserves during late pregnancy should be seen as an investment in the future. That’s why it is critical to make body condition scoring a part of your routine management. c

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By John McKinnon

The Facts on Grain Screening Pellets

A

t this time of the year, many of you are still looking to finalize your winter feeding program and are searching for competitively priced ingredients. Typically producers are looking for alternatives to high-priced cereal grains or protein supplements. In such cases, many producers look at grain screening pellets (GSP). Grain screening pellets are by no means new to the market but judging by the number of questions I get, their nutritional value is not widely understood or appreciated. Part of this confusion is due to the fact that there are a wide variety of products on the market, each differing in ingredient makeup, nutrient composition and pricing. With this column, I will discuss the nutritional merits of the various GSP products and the feeding situations for which they are best suited.

Grain screenings are a byproduct of the grain-cleaning sector. When grain is cleaned, the material that is removed is referred to as dockage. Dockage includes chaff, other grain, weed or inseparable seeds, and pieces of stem. When this dockage is cleaned, three products are generated. These include No. 1 and No. 2 feed screenings. These products are relatively high in value and do not typically find their way into ruminant rations. Refuse screenings are the third product. They consist of the residual material that remains after the No. 1 and No. 2 feed screenings have been removed from the dockage.

Refuse screenings consist of chaff, small weed seeds and dust and up to 15 per cent of the parent grain. They form the basis of most of the GSP products on the market.

Grain screening pellets were a focus of a considerable amount of research in the mid-1990s at the University of Saskatchewan. This work showed that refuse screenings were a good source of protein, averaging 13 to 15 per cent (DM basis). The research also showed that GSP derived from refuse screenings were about 85 per cent of the energy value of barley grain, averaging 75 per cent total digestible nutrients (TDN; DM basis). A key finding of the research was that in order to realize full feeding value, the refuse screenings needed to be processed (ground and pelleted) prior to feeding. This is because a significant amount of the energy in GSP is derived from the oil content of weed seeds which if not processed, simply passes through the animal undigested.

One of the knocks against GSP has been the perception that they are highly variable in nutrient content. For example in our research, the starch content of 18 loads of GSP averaged 26.2 per cent with a standard deviation of 6.2 per cent. In a similar sampling of barley grain, the

24

C at t l e m e n ¡ N o v e m b e r 2 0 1 5

starch content averaged 57.8 per cent with a standard deviation of 3.5 per cent (T. Marx, M.Sc. Thesis University of Saskatchewan). This variation has been one of the factors that limited the widespread use of GSP within the feed industry. To minimize issues with nutrient variation, the feed industry created an enhanced or fortified version of GSP. These pellets are a mix of refuse screenings, pulse (i.e. lentil) screenings and barley grain. Lentil screenings are added as a source of protein while barley grain is used as a consistent energy source. As well, GSP can be fortified with major minerals such as calcium and phosphorus, trace minerals (i.e. copper, zinc and manganese) and vitamins (A, D and E). Feed additives such as monensin sodium can also be added to the mix. While adding to cost, these fortified pellets are a convenient method of supplementing energy, protein, minerals and vitamins to cattle.

How do GSP fit into your feeding program? The answer to this question depends to a large extent on the type of animal you are feeding and your performance expectations. From the perspective of a cow-calf operator, GSP, particularly fortified GSP are a good fit for wintering beef cows. When fed with a medium- to good-quality forage, they will help meet energy and protein requirements of pregnant beef cows. Relative to barley grain, it will be necessary to increase the intake of GSP by approximately 15 per cent in order to supply an equal amount of energy. As indicated above, fortified GSP can also be used to ensure adequate mineral and vitamin intake.

With respect to feeding operations, GSP, even the fortified products do not contain sufficient energy to efficiently finish cattle. However, for backgrounding operations where target gains of 2.0 to 2.25 pounds per day are required, GSP are a good fit. In such cases, GSP inclusion rates will typically range from 35 to 45 per cent of the diet dry matter depending on forage quality.

There are some issues feeding GSP. For example bloat can be a concern, particularly when GSP are fed in combination with alfalfa or alfalfa/grass hay. In such situations, feeding an ionophore is recommended.

Ergot contamination can also be an issue, particularly in years where there has been a wet spring. If you have a concern, consult with your supplier to determine if they have tested ingredients for mycotoxins.

In summary, GSP when competitively priced can be a key component of your winter feeding program.

Knowledge of ingredient and nutrient composition and appropriate feeding rates are keys to successful utilization. c

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

www.canadiancattlemen.ca

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 managem e n t

By Debbie Furber

Multi-species silage is like free insurance

A

s spring turned to summer without giving up much rain, Kevin Stebeleski really started to wonder about his decision to give multi-species silage a try for the first time. Those worries turned moot as July rains and warm weather transformed the 100-acre field into a smorgasbord of forages that landed 8.5 tons to the acre in the silage mound on August 7.

His blend from Elmy’s Friendly Acres Seed Farm at Saltcoats, Sask., was a mix of 10 coolseason and warm-season grasses, legumes and brassicas: cowboy barley, Italian ryegrass, proso millet, sorghum-sudan grass, hairy vetch, crimson clover, red clover, forage rapeseed and tillage radish with some sunflower seed from a local store thrown in for good measure. Costs for the seed, fertilizer and preseeding burn-off totalled $115 per acre.

Stebeleski was introduced to the merits of multi-species cover crops by grazing club co-ordinator Michael Thiele through his involvement with the Shoal Lake graz-

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ing club and he liked what he saw when a neighbour grew a multi-species blend for baleage the year before.

“So far it looks profitable, but I can’t really compare the tonnage to anything because I’ve never grown silage before. Maybe I could get more tonnage with corn or a straight cereal, but I thought the multi-species crop would be a way to utilize my soil better and get nutrients back into the soil,” Stebeleski says.

He and is wife, Crystal, and grown children, Kory and Shaylin, operate Happy Haven Charolais, near Oakburn, Man., where he also holds down a seasonal position with Shur-Gro, a local crop input retailer.

The cost of keeping pace with the price of equipment to grain farm influenced their decision to focus on cattle and he is fortunate to have arrangements with neighbours to be able to bale all the barley straw they need and with his cousin to do the seeding operations in return for help hauling grain.

The silage field was an old hayfield that he had taken one cut from last year for bales and

then sprayed out and direct seeded to oats for baleage. After a pre-seeding burn-off this spring, the multi-species blend was direct seeded into the oat stubble on May 28.

It was off to a good start, missing the latespring frost that took out a lot of canola in the region, but doubts set in as dry conditions stretched well into June.

“Even at that, there was always something growing, just at different stages. Some species grow fast early on and some pick up later on and they seem to work off each other,” he explains.

From what he observed, the forage rapeseed was probably the weakest in the blend, but that may have been due to high flea beetle pressure in his area this spring.

On the impressive side, he’d have to say tillage radish with its immense root that punches into the soil that will release nutrients as it rots really caught his eye.

For regrowth, the Italian ryegrass, both Continued on page 28

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Summer rains brought on Kevin Stebeleski’s first multi-species blend (above) plus some second growth for October grazing (page 26).

Continued from page 26

clovers and even the barley, which had started heading out again by mid-September, had him thinking about how to make the best use of the lush second growth.

Thanks to late-season rains, including five inches the week before, and no killing frost, the perennial pastures in his rotational grazing system had capacity to carry the cattle well into October. Considering the short hay crop because of the dry spell early on, his inclination was to swath the second growth on the silage field, or most likely cross-fence it for later grazing.

He has been forewarned about the prussic-acid caution on feeding sorghum-sudan grass after a killing frost. The rapid buildup of hydrocyanic acid in the plant that converts to prussic acid in the rumen can be deadly for cattle. The natural process that releases the hydrocyanic acid is usually complete within a week or two, so hay and silage are safe. Grazing should be postponed until the plants are dry and brown (http://www.omafra.gov. on.ca/english/crops/facts/98-043.htm).

Stebeleski would also venture to say that the crop probably should have been left standing to mature another couple of weeks before cutting to reduce the moisture content. As best-laid plans would have it, he and three others had already booked a custom silaging outfit and even though all of their fields could have used some extra time, they decided to go ahead as scheduled instead of chancing that the custom operator would have an opening later on.

Feeding silage will be another new step. To start, he plans to feed it to the cows and make

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do the same way as usual by spreading hay and straw with the bale processor and then mixing the silage into the windrow with the front-end loader. He’ll come up with plan B if there seems to be too much waste.

The silage analysis, performed at Cumberland Valley Analytical Services, Hagerstown, Maryland (www.foragelab.com) shows the silage sample was 74 per moisture. On a dry-matter basis, crude protein was 12.8 per cent, total digestible nutrients (energy value) was calculated at 58 per cent, calcium was 0.84 per cent and phosphorus was 0.30 per cent. Acid detergent fibre (undigestible fibre) was 39.8 per cent and neutral detergent fibre (partially digestible fibre) was 54.6 per cent.

The relative feed value (RFV) was 99.

According to the company’s document “Understanding Your Lab Report,” RFV ranks feeds according to their overall nutritive value relative to the nutritive value of full-bloom alfalfa hay with ADF of 41 per cent and NDF of 53 per cent on a dry-matter basis, which is given an RFV of 100. A forage with an RFV greater than 100 is of higher quality than full-bloom alfalfa hay, and vice versa.

RFV is a quick way to compare forages on the basis of energy intake and is calculated using sample analysis results for NDF (indicator of forage intake) and ADF (indicator of digestibility). The company suggests that, because of inherent variability in measuring ADF and NDF, forages with RFVs within five points are comparable.

Another limitation is that the RFV calculation assumes constant relationships between NDF and intake, and ADF and digestibility. Two forages with the same NDF levels, could differ in digestibility,

result in differing intakes. Oftentimes, the RFV of high-quality forages is underestimated because the intake is underestimated.

Another important profitability factor next spring will be his soil test results.

“I’m hoping by adding residue to the soil I will be able to produce some of my own fertilizer and eventually I might be able to eliminate at least the nitrogen from my fertilizer blend. If I can produce more for less, whether it’s silage, hay or cattle, then maybe I will be able to stay in farming longer,” Stebeleski sums up.

He’d be happy to share his experience and thoughts and can be reached at 204234-5425.

The power of diversity

Grazing club co-ordinator Michael Thiele was encouraged and impressed by Stebeleski’s multi-species forage crop when the pasture tour stopped there July 27.

“This is something I’ve been trying to promote within the clubs for lots of good reasons,” Thiele says. “With monocultures, farmers are worn down fighting one thing or another — insects, disease, too much rain, too little rain. With a diverse mix of plants there will be something that can handle those stresses better than others and buffer them for the other species. It’s risk management, like insurance for free.”

The telling moment for him was on a tour a few years ago during a dry, hot summer in the Bismark area of North Dakota where producers have been developing the use of multi-species cover crops for some time now. Five-acre plots had been sown, the first with one species, the second with

www.canadiancattlemen.ca

management

two species and so on down the line to the eighth plot with eight species. Flea beetles and drought had killed the radish in the first plot and the radish and turnips in the second plot, but signs of life improved each plot on the way to the end where the eightspecies mix was green and growing as if conditions had been quite ideal.

When there is a diverse mix of cool- and warm-season plants (grasses, legumes and forbes) with differing physiology, root and leaf sizes and shapes, some plants will be fixing nitrogen, some will be shading others and the soil from heat, and roots will be feeding the soil microbiology at various depths to increase water absorption and organic matter.

“Plant roots on their own aren’t very capable of extracting nutrients from soil,” Thiele explains. “They depend on the soil biology to extract minerals. In exchange, plant photosynthesis captures sunlight, carbon dioxide and water to create sugars that feed the soil biology. Healthy soil. Healthy plants. Healthy animals and people.”

Commercial fertilizer shuts down soil biology building a dependence on having nutrients supplied year after year, he

adds. There’s probably lots of mineral there already. The missing link is robust soil biology so that plants can make use of it.

“Cover crops package up all of this nicely and you can start by making little changes here and there. Just two species together will bump productivity. Some studies show it can increase yield by 50 to 60 per cent,” he says.

Looking at the cost of growing monoculture corn and yield, versus the cost of a cover crop and yield for cattle feed, there’s more to consider than tonnage alone because of the spinoff benefits from multi-species crops. In addition to the soil-building and production risk-mitigation angles, multi-species crops offer lots of options for use all season long because they provide more than one graze, cut or combination of the two, and in this way can be part of a management plan for proper use of other forages. They greatly reduce any feed toxicity issue that may arise because the susceptible affected plants are sprinkled throughout the stand so that the animals take mouthfuls of lots of other plants to dilute the effect.

Thiele can be reached at 204-365-6334 or mthiele@mymts.net. c

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C at t l e m e n · N o v e m b e r 2 0 1 5

29

 seedsto c k

By Debbie Furber

Mexico Bound

I

t won’t be the sandy beaches that draw Grant and Tanya Chittick south to Mexico for the winter. When they do make the trip on their own time, it will be to visit the ranches that are home to breeding stock purchased from the family’s ranch north of Mayerthorpe, Alta.

Chittick received word September 28 that the 33 bred Red Angus heifers shipped four days earlier had arrived at the Mexican border.

The Chittick heifers, along with seven of his neighbour’s and 40 from two ranches in Saskatchewan made up the two loads of 80 bred Red Angus heifers that left Canada in sealed cattle liners. They were unloaded in Wyoming for a 24-hour rest and health check before reloading onto the liners that were resealed by that veterinarian for takeoff to the Mexican border.

There, they were off-loaded and rested for 48 hours for the final jaunt on domestic liners bound for the ranch near Hermosillo, capital of Sonora state in northwestern Mexico, about six hours south of Phoenix.

The sale was arranged and co-ordinated by Roger Peters of Peterosa Exports at Red Deer, Alta., who first did business with the Chitticks when a Mexican buyer purchased a bred Hereford heifer from their son, Raymond, at Farmfair International (FFI) in Edmonton.

Through connections made at FFI, several potential buyers and the president of the Asociacion Angus Mexicana, Billy Estrada, have come up to the ranch a couple of times lately looking at cattle, Chittick says.

30

“The Mexicans are looking for lines to improve their beef genetics and mainly look for easy-going cattle with good conformation and feet,” Chittick explains. They do take notice of performance as indicated by size and looked at the sires’ papers, but never asked for performance records on the heifers. They won’t even consider animals with short ears because that’s taken as an indication that the animal has been or is sick. To stay true to the Red Angus breed, they might accept a bit of white on the udder, but not a hair in front.

The registration papers were transferred to the new owner in Mexico. Now all calves off the heifers next spring, and every year thereafter, will be inspected by officials of Mexico’s Angus association to make sure they meet requirements for registration there.

The sale went smoothly with Peters arranging and accounting for preg checking, health tests and other export requirements as well as transportation.

Chittick was hopeful that some of the farm’s Simmental heifers would fit the bill for orders from Mexican buyers that Peters was looking to fill. The family raises fullblood, Red and Black Simmentals, but the Mexicans are only interested in the fullbloods, he adds.

The Chittick family includes four clans who live in close proximity to one another and each have their own herds. They work together running 600 registered Simmental,

C at t l e m e n · N o v e m b e r 2 0 1 5

“ The Mexicans are looking for lines to improve their beef genetics and mainly look for easy-going cattle with good conformation and feet.”

Grant Chittick Mayerthorpe, Alta.

Continued on page 32

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Continued from page 30

Red and Black Angus, and Hereford cows on a total land base of 15 deeded quarters and additional rented land to provide all of their grazing and winter feed needs.

Their annual Chittick Family Bull Sale is the first Friday of March at Mayerthorpe. Drought this summer cut short their plan to go ahead with their first production sale for bred heifers. Normally, they raise 170 bred heifers and keep about 100. This year, they will be selling 100 and the sale to Mexico got them off to an early start.

Grant, his wife, Tanya, and their son, Raymond, have 450 Red and Black Angus, Red and fullblood Simmental, and Hereford cows. Their youngest son, Jessie, has added a few of his own and their daughter, Crystal, helps where needed and with the paperwork that goes along with having registered cattle. Grant and Tanya operate under the name, Gra-Tan Farm, and Raymond goes by Chittick Farm.

The Black Simmental herd is owned by Grant’s parents, Gary and Faye, who go by the old Irish name, Kin-Kin Farm, along with Grant’s brother, Randy, and wife, Donna, who call their place Rachido.

Those who take in Farmfair may be most familiar with the Chittick Family Herefords name.

Hereford was the original breed on the farm in his granddad’s and dad’s earlier years, Grant says. They branched out into other breeds in recent years as Continental cattle were making their mark and the Angus breed was stepping out with strong promotions, but still maintain a herd of 100 Hereford cows. Chittick likes to showcase the Herefords at FFI to boost the breed’s image and is very pleased to see the Here­ford association pick up the pace with new research and promotions.

In addition to the Hereford heifer sold through the FFI venue, the family took home the reserve champion ribbon with a group of three yearling Hereford bulls in the 2014 all-breed pen of bulls show judged by commercial ranchers.

Raymond’s bull was the rancher’s choice pick at the Hereford genes event as well. Sponsored by the Canadian Hereford Association, this event is open to all Hereford breeders showing at FFI who pay to enter a bull calf or yearling bull and invite five customers. The lucky customer is drawn during the Ranch Rodeo where all of the bulls are displayed. The owner of the rancher’s choice bull receives payment from the association, which was $10,000 last year.

“Farmfair has been a great way of promoting our cattle,” Chittick says, adding that all four families participated with 15 Hereford and Simmental cattle entered in this year’s show, November 11-15.

The Chitticks also hosted a stop during FFI’s farm and industry tour day, Nov. 10, as part of its inbound-buyers program co-ordinated with Canadian breeders and genetics companies to assist international buyers.

That wasn’t long after their return from the 2015 World Angus Secretariat’s conference and ranch tours hosted

by Mexico in October. Their spot on the Durango leg of the tour ending at Mazatlan for the conference was made possible on the basis of all three qualifiers: through their participation in FFI, as a member of the Canadian Angus Association, and as an exporter.

For more information call Chitticks at 780-786-2181. c

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 ex p o rt i ng

Red hot in Mexico Roger Peters of Peterosa Exports has sold a fair share of purebred Simmental, Charolais, Hereford, Gelbvieh, Limousin, and Black Angus cattle to Mexican buyers over his 30-year career dealing in that market. Now, Red Angus is the hot breed there.

“Red Angus has been a relatively small breed in Mexico until now,” Peters says. About five years ago he saw demand for the breed start to pick up and last year sold approximately 300 bred heifers and yearling heifers and bulls to Mexican clients, making up close to half of his sales to the country that year.

“Mexicans appreciate the quality of our cattle and they adapt well into the climates there, depending on where they are from here, where they are going and management of the ranch in Mexico,” says Peters. Through the years, he has sold beef cattle from Western Canada, Ontario and the U.S. into 17 Mexican states and travelled 31 states building rapport with clients and learning about their needs.

Mexico is far more diverse than the fun-in-the-sun resorts seen in advertisements. Climates range from tropical to desert to mountains and all degrees in between with many beautiful, well-managed ranches, from extensive to intensive operations, he says. Just as in Canada, ranches vary in size and scope depending on growing conditions. In some regions operations are expansive requiring maybe 100 acres per cow, while other places might be able to carry five cows on 10 acres.

Cattle he has shipped to the hot, dry northwest where the Chitticks’ cattle now are, have adapted as well as cattle from Grand Prairie, Alta., now on a ranch 60 miles inland from Mazatlan, where all cattle have to be rounded up to go through an insecticide bath every 15 days to control ticks and black flies or they know there will be dead cattle.

Cattle of all ages (born after March 1999) are eligible for export to Mexico, but he encourages his clients to consider young cattle because of their ability to adapt more readily than older cattle, and to spend the extra for purebred cattle. If a Mexican ranch is going to the time and expense of importing cattle, it might as well have young cattle that will contribute superior genetics for years to come, Peters explains.

He scopes out upcoming dispersal sales and other potential sources in Canada for prospects and encourages Mexican buyers to come north to take a look ahead of time, but approximately twothirds of the cattle go sight unseen.

Peters’ standard is that cattle have to be of the quality that would work on his own ranch and he follows up on each sale to make sure the cattle are satisfactory. His Mexican clients agree with his call as evidenced by compliments he received after judging a 450-head multi-breed show at Hermosillo under 40 C skies in May. One came from the president of the state cattlemen’s association who ended up being the buyer of the Chitticks’ cattle.

Peters has become fluent in Spanish, which has been a strong asset in successfully closing transactions to the satisfaction of buyers and sellers.

Each deal is different, he says. Like any exporter, he has instructions from clients and works off that to cover transaction expenses. Costs are openly discussed with buyers and sellers in formalizing the agreements for sale and purchase. Peters looks after every detail from assembly and transport logistics, to ensuring health and export/import requirements are met, and completes the paperwork and payment to ensure a smooth transaction.

For more information call Peters at 403-828-9815, or visit www.peterosaexports.com.

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 drugs

By Ron Clarke, DVM

The AMR Dilemma: Part 1 Searching for Ways to Move Forward

N

o issue in the past 15 years logged more space in agriculture, veterinary or public health-related press than antimicrobial resistance (AMR).

No single topic appears more often on conference and seminar agendas than the one addressing prudent use and abuse of antimicrobials in humans and animals.

Despite the attention AMR has received, we have not diminished, even subdued, the evolution of antimicrobial resistance. We appear to be losing the war.

The throngs of professionals examining AMR and all the negative ramifications AMR brings to human and veterinary medicine seem to have reached the threshold where the quest for information is confused with understanding. Moving beyond today’s dependence on antimicrobials and the negative impact AMR has on human life calls for astute decision-making. The key to good decisionmaking on AMR is not reams of finite knowledge about the mechanics of resistance, but understanding why it’s happening because of the way antimicrobials are being used.

The issue is complex and global in nature with no easy answers. No subject touches modern livestock production more fully than antimicrobial use in animal-based food production and the relationship it has to AMR in humans. The assignment of cause for the growing dilemma of highly resistant, life-threatening bacterial infections on hospital wards stimulates arduous debate and finger pointing over what rep-

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resents judicious use and where responsibility lies related to preserving the shrinking inventory of effective antimicrobials. Agriculture is in the game. The livestock industry must approach the future with a remit to be proactively engaged in finding answers to AMR, or stand suspect and untrustworthy.

Within the context of this article the terms “antibiotic,” “antibacterial” and “antimicrobial” are used synonymously as drugs used against micro-organisms, bacteria in particular, although by scientific definition antimicrobial compounds can be classified, produced and used in different ways.

Since the 1940s, antimicrobial drugs saved millions of lives in both animals and people despite a biological flaw shared by them all — the innate ability to become resistant.

Alexander Fleming, the scientist credited with discovering penicillin, knew antibiotics were a unique class of drug. He recognized very early that antibiotics underwent a transmissible loss of efficacy over time. The more we use them, the more we lose them. For this reason, Fleming considered antibiotics a public trust in that every individual’s use of antibiotics affects the efficacy of antibiotics for everyone else. “The thoughtless person playing with penicillin is morally responsible for the death of the man who finally succumbs to infection with the penicillin-resistant organism. I hope this evil can be averted.” (Alexander Fleming, 1945) The fact we may be approaching an era without antimicrobials is frightening. Predictions that the real predators of the 21st century

will be the microbes grow hauntingly real.

It’s very difficult to give simple, sound bite answers for issues that we know have evolved over thousands of years as naturally occurring antimicrobials in our ecosystem played the Mephistophelian dance of adaptation.

Bacteria exist in microbial communities that interact with each other. At a molecular level, antibiotic-like compounds act as signalling devices, informing all community microbes that changes are happening. Bacteria, being highly sensitive, adapt. Bacterial communities associated with air, water, soil, humans, and animals are all involved. To blame any single player in the mix as being the “major” contributor to AMR might seem a convenient answer, but it’s not a real one.

Bacteria are living creatures and as such adapt and mutate. Change is perpetual and makes antimicrobial resistance a moving target. AMR is not new. Going back to undo errors of the past is simply not doable.

All this generation possesses is the wisdom learned from poor judgment through much of the last century. Finding a way forward rests with a full understanding about changes induced through our use of antibiotics, and the imprudence that brings us to this point.

In the search for answers, we need to factor in the adaptation industry requires to sustain food production and adjustments needed to maintain human medical systems.

On a personal note, I’ve shifted from one Continued on page 36

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ing once per hour become a million cells in 16 to 17 hours. The infective dose (number of bacteria required to produce illness) varies widely among pathogens. For example, E. coli O157:H7 requires an infective dose of only about 10 cells. By contrast, other pathogens, such as Vibrio cholerae, require a large number of cells (hundreds of thousands) in the inoculum to successfully infect a host.

Immune systems must be functioning and fully equipped to fight infection or defence mechanisms are overwhelmed very quickly.

side of the fence as a practising veterinarian at one time unconcerned about industry’s ability to discover new antimicrobials, to sitting on the fence realizing there were limits to invention, to the side of being afraid.

The fear factor materialized after losing a dear friend, a mother and nearly a brother following open-heart surgery to bacterial septicemias caused by garden-variety bacteria that had grown resistant. All this, in spite of the armament of potent antibacterials sitting on shelves within reach.

It’s real folks. The following is an attempt to provide the inside skinny on AMR; underlying issues we need to collectively deal with; opinions why we’re not further along the road than we should be; and hopefully, insight into solutions.

AMR’s complexity is a complement of the many ways bacteria interact with antibacterials, and with each other to exchange genetic material between species giving rise to multiple patterns of resistance. The multitude of ways bacteria spread between animals, people and the environment, and the innate ability bacteria possess to reproduce, multiply and protect themselves add to the complexity.

Basically, antibiotics inhibit or kill susceptible bacteria in four general ways: • Disruption of microbial cell wall synthesis • Inhibition of DNA replication • Inhibition of protein synthesis; and • Inhibition of cell division, development, and differentiation.

Bacterial infection is typically a numbers game. They possess the ability to grow exponentially, which means 10 cells divid-

The human-animal link

Scientists around the world have provided strong evidence that indiscriminate antibiotic use in food-producing animals can have a negative impact on public health.

Food animals serve as a reservoir of resistant pathogens and resistance mechanisms that can directly or indirectly result in antibioticresistant infections in humans.

Resistant bacteria can contaminate the human food supply at processing or become environmental contaminants through manure and water run-off. Food safety issues arise whether bacteria are resistant to antibiotics or not. Resistance adds another dimension to illness caused by human pathogens in food. Preventing human infections with resistant bacteria that potentially arise from the food supply is particularly complicated, and in many ways, not fully defined.

The role antimicrobial use in livestock plays against the backdrop of food safety and AMR requires careful analysis to ensure the right things are done for the right reasons. The notoriety of food safety issues is heightened by modern food distribution systems that

channel outbreaks of food poisoning across jurisdictional boundaries. Recent outbreaks of multi-drug-resistant salmonella traced to ground beef and poultry demonstrate the relationship of animal and human health.

Results of a study published in the journal Clinical Infectious Diseases drive increased discussion of antibiotic use in livestock and emergence of antibiotic-resistant pathogens.

Work conducted by researchers, from the University of Iowa, Kent State University and the National Cancer Institute, Rockville, Maryland, showed that workers in swine barns are six times more likely to carry MDRSA (drug-resistant staphylococcus) than those without swine exposure. In an article from Reuters, the National Pork Producers Council pointed out that other studies have shown hog farming does not create an increased risk for staph infections.

Researchers at Texas Tech University are now suggesting that airborne dust could be a pathway for antibiotic-resistant bacteria to travel from feedlots to human environments.

The complexity that food safety concerns add to the AMR challenge is particularly problematical requiring a multi-faceted approach by many stakeholders. The controversy surrounding agriculture’s role in AMR isn’t helped by contrasting opinion within the research community.

Many bacteria in the environment carry antibiotic-resistant genes developed as a result of exposure to naturally occurring antibiotics produced by soil fungi and bacteria.

Laboratory-made versions of naturally produced antibiotics are used to treat infection in humans and animals. Others, not used in human medicine are produced commercially

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to promote growth in livestock. Manure itself is known to change the composition of bacterial communities in soil. A team led by microbiologist Jo Handelsman (Yale University, New Haven, Connecticut), showed that manure treatment helped natural bacteria grow and in doing so promoted proliferation of antibiotic-resistant genes in soil. The manure was particularly beneficial for Pseudomonas species. Highly resistant P. aeruginosa is a leading cause of death among cystic fibrosis sufferers and a cause of other resistant infections in hospital patients. By putting antibiotics into soil where bacterial populations have been altered by manure, can exacerbate problems with resistance. Some feel strongly that taking a closer look at organic agriculture techniques using manure instead of nitrogen-based fertilizer requires review. Use of manure may inadvertently enrich soil-enhancing growth of drug-resistant bacteria that eventually span the gap from agriculture to human medicine.

The extent to which use of antibiotics in farm animals contributes to antibiotic resistance in human medical clinics is still controversial. A U.S. government release published in September 2014 concluded further investigation is still needed, but stopped short of recommending a ban on all medically important antibiotics for humans in farm animals.

Antimicrobials commonly used in humans and administered to companion animals (dogs, cats, horses) add another field to the AMR quandary. Companion animals, especially cats and dogs, through their close contact with humans, are potential sources of spread of AMR between animals and people. Antimicrobials like cephalosporins and fluoroquinolones are a particular concern. In 2002, companion animals accounted for 37 per cent of pharmaceutical product sales in the EU. Drug-resistant infections in companion animals include methicillinresistant Staphylococcus pseudintermedius and Schlieferi; methicillin-resistant Staphylococcus aureus; and multi-drug resistant Klebsiella and E. coli. A dog park study conducted by the University of Minnesota showed 27 per cent of samples were positive for E. coli — many multi-drug resistant.

In response, to these concerns, national and state professional veterinary associations have actively promoted antimicrobial stewardship in companion animal practice.

There has been an effort to better understand practitioner prescribing behaviour and laboratory practices. Associations have encouraged development of practice guidelines and promote educational programs with webbased training modules. www.canadiancattlemen.ca

The choice of antibacterials used in food animal agriculture is only one part of the AMR equation, the other major component being the historical use of antibiotics in humans. A report to President Obama on combating antibiotic resistance from the President’s Council of Advisors on Science (PCAST) in Sept. 2014 stated, “While it is clear that agricultural use of antibiotics can affect human health, what is less clear is its relative contribution to antibiotic resistance

in humans compared to inappropriate or overuse in health care.”

Antibiotics in the health-care system have been inappropriately used in the absence of bacterial infection and for prophylaxis (prevention). Not uncommonly, improper dosage instructions are issued with a lack of attention to appropriate duration of administration.

Owner finances, AMR concerns, side-effects and client expectations are cited as influential reasons for choosing a specific antimicrobial. c

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New Research: Private Data Network A

s the national administrator for beef and dairy cattle, bison and sheep animal identification, Canadian Cattle Identification Agency (CCIA) formed the Technical Advisory Committee (TAC) in 1998 to provide industry and governments with a forum for discussion of technology and information management, and to make recommendations to its board of directors regarding changes or improvements that affect the Canadian Livestock Tracking System (CLTS) database and livestock traceability in Canada.

More recently, the TAC furthered its work L O C A T I O N

by establishing a Research and Development (R&D) Cluster that will use technical expertise from within the TAC and industry to develop and approve projects that examine challenges facing producers, industry and governments as well as find practical solutions to move traceability forward in Canada. Ideally, the Cluster will coordinate research across the livestock sectors to prevent duplication of efforts and share results of work underway. The goal of CCIA’s R&D Cluster is to leverage CCIA’s ties with industry and work with academia, governments and other key partners to conduct research and implement solutions to Canada’s unique situation, specifically in traceability-related animal health and food safety.

One of the R&D Cluster projects underway is the Private Data Net-

work (PDN), which is considering a different approach to collecting and reporting animal movement data by means of automatic scanning and direct upload of sighting data to the CLTS database (i.e., reading of individual, approved CCIA RFID tags received at a location). This project concept has been designed to: 1. Ease the administrative burden on industry to report animal movement in paper or digital format; 2. Increase data integrity by eliminating manual data entry of animal movement data; as well as 3. Support implementation of and compliance with proposed regulations regarding animal movement reporting and a fully-functional livestock traceability system in Canada.

CCIA’s Radio Frequency Identification RFID) Systems Applied Research Study (completed with the final report published in 2011), contemplated the concept of a ghostreader system, which refers to a RFID reader that collects and reports traceability data to the CLTS database without human labour requirements. The PDN project explores this concept further by evaluating the level of animal tag scans (i.e., sightings) needed to meet the epidemiological requirements of a fully-functional livestock traceability system in Canada.

The Private Data Network project will use existing RFID tag readers to scan and collect animal tag numbers from selected intermediate sites and farms of origin over a predetermined

SIGHTING 1: Location A on Jan.12/15

time period, and apply a computer algorithm (i.e., a process or set of rules to be followed) to extract movement data from the accumulated, ghost-reader scans.

The project will use existing RFID tag readers that are

directly networked to the CLTS database to optimize data integrity, reporting speed, accuracy and privacy.

This project will evaluate and compare the sighting data collected by the ghost-reader system with actual movement data for the same time and locations. This project will direct the scanned data to a CCIA landing server for cleansing and categorization. Where applicable, animal movement data will be sorted off, analyzed and reported to the CLTS database – as well as sighting data (i.e., reading of individual approved CCIA RFID tags that are received at a location).

The greater the volume of data collected and reported will increase the accuracy of the animal movement data in the system and reduce industry’s burden of movement reporting. To increase the size of the available data pool for scanned livestock, data sharing agreements with each industry sector would be needed.

By collecting sighting data from various members of the value chain using ghost-reader systems, this project may gather and report the

SIGHTING 2: Location B on Jan.19/1

on Jan.19/15

traceability data needed to meet the epidemiological requirements of a fully-functional livestock traceability system in Canada. Specifically, the project will: 1. Address the quality of scanned data that is required on an ongoing basis to meet animal movement data reporting requirements; 2. Answer the question of whether or not a private data network can be used to collect and report more data from more locations across Canada more efficiently than existing methodologies; and 3. Determine how much administrative burden will be reduced or eliminated through the collection of animal movement data using ghostreader systems.

The PDN project team has already completed the preliminary proof of concept work and has tested the data reporting devices under development that are able to report site-specific data independently – anticipating these devices will incorporate the latest technology, including geo-location hardware to increase the accuracy of the scanned data. Discussion around this project with other traceability providers has led to a consensus that if ghost-reader systems are proven viable, they will improve data integrity and regulatory compliance while lowering industry costs and accelerating the implementation of a fully-functional livestock traceability system in Canada.

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SIGHTING 3: Location B on Oct.19/15

 Holistic R a nc hi ng

By Don Campbell

drought mitigation

T

he active part of the 2015 drought is behind us. While this is true it is important to recognize that the effects of the drought will linger for some time. One of the lingering effects of the drought is the stress and pressure it may cause in our families. This can be a serious situation that should not be ignored.

If stress is an issue in your life I encourage you to take positive steps to deal with it. Often just talking things over with your spouse or a friend may help. It is odd how most of us withdraw from friends and family when we most need their support. Be aware of your mental health and the mental health of your family and neighbours. Is there someone you might help by visiting with them? Make yourself available. You may be rendering a valuable service. If the situation is serious get professional help. Being wise enough to seek help is a sign of strength and wisdom not weakness.

The effects of the drought will also challenge many of us with feeding and marketing decisions. Here again I encourage you to make a plan. Investigate different feeding options. Look for a leastcost ration. Know how much you can pay for feed and at what point marketing some of your animals may be a wise decision. Prices are strong for all classes of cattle. Selling calves you normally winter may be a viable option. Selling a portion of your cow herd might be a wise decision. I encourage you to look at all the options. Be flexible.

Think outside the box. Realize that you have many options. Pick the one that best suits your individual situation.

Now let’s look ahead. In most areas in Western Canada drought is a fact of life. The severity and frequency of the drought varies from area to area. The fact remains that most of us can expect to experience another drought at some future date.

This leads me to the title of this article “drought mitigation.” I wasn’t real sure what mitigation meant but it seemed like a good title. The definition of the word is to make less severe. That’s exactly what I want to talk about.

Do you realize that your management can mitigate the next drought that you experience?

A Case Study

This is a story about my friend Gene Govan. Gene ranches in North Dakota. Several years ago his area was experiencing a severe drought.

It is an area with relatively small land holdings, and most people continuous graze and use dugouts for a water source. Gene, however, had been using planned grazing for several years. The people who continuous graze were out of grass and were feeding. Gene was still grazing. The dugouts were dry. Gene and his neighbours were all hauling water.

There was a heavy rain in the area, five inches or more in a short time period. Following the rain the neighbours’ dugouts filled immediately so while they had to continue to feed they could stop hauling water. Gene’s dugout came up only marginally after the rain so he continued to haul water. Gene was perplexed. He knew he had received the same rain as the neighbours. He had no idea why his dugout had not filled. Over the next two weeks his dugout filled.

Now let’s analyze what happened. On the continuously grazed

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land the water cycle was poor. This resulted in most of the rainfall running off. The dugouts filled immediately. Only a small portion of the rain remained in the land for plant growth. Gene’s land had an effective water cycle. This resulted in most of the rain soaking in.

A large portion of the rain remained in the land for plant growth.

The result was a rising water table, which eventually filled the dugout from the bottom.

Gene’s land was later tested by the NRC. A cubic foot of his land had the ability to hold 10 times the amount of water that a cubic foot of the same land would hold when continuously grazed. This clearly demonstrates that you can change the water table on your land by improving your management.

The planned grazing process used by H M stops overgrazing and improves soil fertility. It allows us to improve the four ecosystem building blocks, energy flow, water cycle, mineral cycle and succession, which are closely linked. As you improve one of the blocks you have a positive impact on the others.

By improving the water cycle you can double your effective rainfall, the amount of water available for plant growth after runoff and evaporation are accounted for. We are all aware that when it rains some water is lost to run-off. Some soaks in. Some of the water that soaks in will be lost to evaporation. When the soil is covered there will be less run-off. When the soil is high in organic matter and porous it will hold more water. When the soil is covered less water is lost to evaporation. The result is an effective water cycle. We have now doubled our effective rainfall, the equivalent of doubling our rainfall.

Everyone talks about the lack of rain and drought. A large part of the impact of drought is due not to the amount of rain but the ineffective water cycle. You can’t do anything about the rain you receive.

You can improve your water cycle.

Rainfall is the limiting factor in most of Western Canada. By using better management we have the ability to double our effective rainfall. By doing this we will mitigate the effects of the next drought.

Think back to this past summer. How much better would you have fared if you had received double the amount of rain? How much more hay and pasture would you have produced if your land had an effective water cycle?

Suggestions to Mitigate Future Droughts

1. Investigate H M and planned grazing.

2. Visit a neighbour who uses the H M principles.

3. Take an H M course.

4. Manage for an effective water cycle.

Drought is a fact of life for most of us. Better management will help mitigate the negative impact of the next drought. I encourage you to think about this and to investigate H M. The time to prepare for the next drought is now. 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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grazing

By Steve Kenyon

what are you?

M

any years ago I attended the TEPAP School in Texas. That stands for “The Executive Program for Agricultural Producers.” It was a great school and I learned a lot. One thing that really shocked me when I took it was that during the entire week of class, not one topic was related to production practices. It was all on business management.

In my experience, I have found that 80 per cent of what I teach or speak about has to be on production practices as that is what the producers want. When I am asked to speak on grazing or bale grazing, I am bombarded by questions and many producers want to discuss the topic after. However, when I speak about human resources or economics, I only get a few questions and I can become quite lonely afterwards.

I get it. Production practices are sexy.

We all love to learn about fencing, grazing, calving or new equipment. But I have also learned that if we want our businesses to be profitable, we should be spending 80 per cent of our time learning about business management and only 20 per cent of the time worrying about production practices, not the other way around. Warning: This is one of my 20 per cent articles.

I enjoy working on human resources.

Communication is one of the most important skills you will ever learn in life. It can never hurt to develop your ability to talk to, debate with, and understand others.

I am a custom grazier. The most important part of my business is not grazing. It is human resources. I can be the best grazier in the land, but if I can’t find the land to rent, it does not really matter. I need to be able to talk to landowners to acquire the land at a reasonable rate. One thing that I did bring home from the TEPAP course was the personality-style model.

Well, sort of.

The DISC model that they used was fantastic; except for the fact that it was kind of boring. I apologize to anyone who might be offended but I renamed some of the styles to make the test a little more user friendly.

There are four basic types of people; the Dragonfly, the Butterfly, the Ant and the Bumblebee. (DISC)

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The Dragonfly — This insect is a predator. Watch out, it eats other insects.

This personality style is very dominant and direct. This person takes action and needs to be in charge. They are willing to take risks and can be impatient. They are problem solvers and value their time.

In addition, they can be strong willed, demanding, aggressive, blunt and downright stubborn.

Butterflies — We all know the social butterfly! This personality is social and influencing. They need to interact with others and are friendly, charming, persuasive, talkative, impulsive, and optimistic. They are usually a good leader and can motivate others. On the downside, they can appear emotional, self-promoting but also are very trusting and generous. Think of a Butterfly you know — they may also have poor time management skills.

Ants — Work, work, work. Tirelessly working doing the same things day after day! This personality style has the need for consistency. They are predictable, patient, understanding and are good listeners. They are hard workers and will get the job done.

However, they may be resistant to change and may rather do the job themselves. They can appear as inactive, complacent, possessive, mild and passive.

Bumblebees — If you have ever seen “The Bee Movie,” you will know that the hive is run in perfect harmony. This personality style is a perfectionist. They are accurate, systematic, analytical, methodical and good fact-finders. They will examine things in detail and may set very high standards for others to follow. They can appear as evasive, restrained, conventional and quiet. I bet they like numbers.

Who are you? How about your spouse?

Or your kids? Or your hired hands? Or your boss? It is important to know what style you are as it affects how others relate to you. It is also just as important to develop a skill to determine the personality style of the people you deal with. If you want people to co-operate with you more, try understanding how they relate to others. How do they learn? What offends them?

Now this is a very simplified version and of course it is not exact. We are not all one

type but more of a mixture of all four. Most people have a dominant style with traits from the other styles mixed in. The version from TEPAP was computerized and it spit out a 17-page report that fit my personality to a “T.” I am a Dragonfly. I can come off a little blunt. OK, sometimes a lot blunt, but once I learned about these different styles I could start to relate better with others. I learned a few things.

If I am dealing with a Butterfly, I need to be less business minded. I have to understand that they want to be friendly and social and not just “get down to business.”

If I am meeting with an Ant, I need to take my time and explain things carefully.

I need to emphasize facts and I can’t be critical of their current ways. If a change is in order, it has to be their decision. I can’t push them or they will push back.

The Bumblebee needs all the juicy details. I have to avoid rushing to the point without giving all the little details first. They are the perfectionist. If it’s not perfect, it’s not right. They may have a lot of questions so I need to be patient and be ready with the answers.

But what if I meet up with another Dragonfly? Well, if we don’t kill each other first, we might get along just great. We can relate to each other quite well. If you meet up with one of us, we want the punchline first, and then you can bore us with all the details if you must because we aren’t listening anymore anyways. (Just kidding, I promise I will still be listening.)

We are impatient and we need to get the deal done.

It is amazing the difference it makes in dealing with people if you first try to understand them. What style are they? Find some place that teaches about personality styles and see how much it changes your ability to communicate. Communication is the most important skill we can learn. It might just be the kick your business needs. c Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www. greenerpasturesranching.com, 780-307-6500, email skenyon@greenerpasturesranching.com or find them on Facebook.

www.canadiancattlemen.ca

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

BeefWatch

 U.S. herd expansion in 2015 means more calves are available south of the border this fall. In contrast the Canadian herd continued to contract. As U.S. beef production rebounds in 2016, there is potential for beef and cattle prices to decline. Current prices are being supported by a lower exchange rate.

Has Canada missed out on the largest expansion opportunity this generation may ever see?

CATTLE INVENTORIES

Canadian herd shows no growth Statistics Canada reported total cattle inventories on July 1, 2015 were down 2.1 per cent at 13 million head. Beef cow inventories were down 3.4 per cent or 134,400 head to 3.79 million head. Regionally, Alberta with the largest beef cow herd at 1.5 million head was down 4.4 per cent from last year. Followed

by Saskatchewan with 1.15 million head down 2.8 per cent; Manitoba with 448,300 head down 2.2 per cent; Ontario with 276,300 head down 4.5 per cent; and British Columbia with 190,500 head down 1.9 per cent, Quebec with 177,800 head down 2.1 per cent, and Atlantic Canada with 43,200 head down 2.5 per cent.

The answer to the question, were producers retaining breeding heifers this summer was a disappointing no. Beef breeding heifers were down 0.6 per cent or 3,600 head to 612,600 head. While heifer placements into feedlots were down in the first quarter they quickly jumped back up to historic levels as dry conditions became apparent in parts of the western provinces. Despite improved weather conditions in late July and August, it was too late to reverse those decisions and another year has been lost.

The 2015 calf crop was down 3.7 per cent and feeder exports in the first half of 2015 were strong. This will limit

beef production in 2016. Canadian feeder and calf supply outside of feedlots were down 1.5 per cent or 86,240 head. Overall, this implies around a 3.0 per cent reduction in fed marketings in 2016 assuming feeder exports in the fourth quarter are steady to lower than last year.

U.S. growth In contrast, the U.S. is in full expansion mode with July 1 total cattle inventories up 2.2 per cent at 98.4 million head. Beef cows were up 2.5 per cent at 30.5 million head and beef replacement heifers were up a sharp 6.5 per cent at 4.9 million head as the industry responds to some of the strongest expansion signals since the mid-1990s. This was the first time July 1 cattle inventories increased since 2006. Very strong cattle prices and profitability combined with improved grazing and pasture conditions is finally allowing the U.S. herd to grow. This follows annual declines in cow numbers in 17 of the last 19 years. As cattle prices have come down this fall, expansion efforts will slow.

A larger 2015 calf crop (+1.2 per cent or 400,000 head) and a larger number of non-replacement cattle outside feedlots (+2.0 per cent) will support beef production in 2016. USDA is projecting beef production to be up 6.0 per cent in 2016 which will potentially pressure beef prices in North America down.

PRICES AND PROFITABILITY

The U.S. cattle market has removed all the gains seen over the last couple of years. At the end of September U.S. fed cattle prices were the lowest since the summer lows in August 2013. While the lower Canadian dollar supported the domestic market throughout the first half of the year, Alberta fed cattle prices have dropped 21 per cent from the spring high. At $160/cwt the end of September they were steady with last year. The 10-year Continued on page 44

Canadian Cattle Inventories July 1 (1,000 head) 2015

2014

15 vs. 14

221.4

225.2

-1.7%

Beef cows

3,792.2

3,926.6

-3.4%

Dairy cows

932.0

949.0

-1.8%

Dairy heifers

438.0

451.9

-3.1%

Beef heifers (brdng)

612.6

616.2

-0.6%

Beef heifers (sltr)

1,195.5

1,215.6

-1.7%

Steers

1,687.9

1,622.5

4.0%

3.0

Calves

4,125.4

4,283.0

-3.7%

2.5

Total

13,005.0

13,290.0

-2.1%

Source: Statistics Canada

www.canadiancattlemen.ca

 Canadian beef COW INVENTORY JULY 1 6.0 5.5 5.0 Million head

Bulls

4.5 4.0 3.5

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 ov e mb e r 2 0 1 5

43

BeefWatch

39,800

39,000

39,100

2.1%

1.8%

Beef cows

30,500

29,750

29,850

2.5%

2.2%

Dairy cows

9,300

9,250

9,250

0.5%

0.5%

Heifers >500 lbs.

15,900

15,600

15,500

1.9%

2.6%

Beef rep. heifers

4,900

4,600

4,200

6.5%

16.7%

Dairy rep. heifers

4,200

4,100

4,150

2.4%

1.2%

Other heifers

6,800

6,900

7,150

-1.4%

-4.9%

Steers >500 lbs.

14,100

13,700

13,700

2.9%

2.9%

Bulls >500 lbs.

1,900

1,900

1,850

0.0%

2.7%

Calves <500 lbs.

26,700

26,100

25,900

2.3%

3.1%

Calf crop

34,300

33,900

33,500

1.2%

2.4%

Source: USDA

44

C at t l e m e n · N o v e m b e r 2 0 1 5

 canadian beef cow culling rate 20%

20-yr. average = 11%

15%

10%

5%

0%

13

2.4%

10

15 vs. 13

2.2%

07

15 vs. 14

96,050

04

“2013 (LMIC)”

01

2014 96,300

98

All cows

2015 98,400

95

Total cattle

92

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

Feeder Prices Alberta 500- to 600-lb. steer calves averaged $309/cwt in September up 15.6 per cent from last year. Historically calf prices have been steady to stronger in the fourth quarter increasing as much as one to two per cent from September to December. Over the last five years this rally has been even larger around five to six per cent. But prices are expected to be pressured lower throughout the fourth quarter this year, with lower fed cattle prices and higher feed costs. Prices have already dropped 12 per cent and

89

Lethbridge barley averaged $219/tonne in September up 23 per cent from last year. Canadian barley production is projected to be up 7.0 per cent this fall to 7.6 million tonnes. Even if yields end up being better than forecast, production is still at historic low levels. The ending stocks-to-use ratio for the 2015-16 crop year is projected to be steady at 22 per cent.

Ontario corn averaged $193/tonne in September, up 6.0 per cent. Canadian corn production is projected to be up 7.0 per cent at 12.3 million tonnes. U.S. corn production is forecast to be down 5.0 per cent at 13.6 billion bushels but the stocks-to-use ratio will drop to 13 per cent from 15 per cent in 2014-15. Omaha corn

Replacement Ratios The lower the replacement ratio the fewer dollars the feedlot must pay to replace a fed animal with a feeder; conversely a higher ratio means the feedlot must pay more per pound to replace those animals. Replacement ratios have been increasing throughout 2015. In the third quarter, all ratios in the west were eight to 11 per cent higher than last year and in the east they were two to six per cent higher. Higher replacement ratios have encouraged feedlots both north and south of the border to feed cattle to record-large carcass weights.

Steer carcass weights reached 921 lbs. in September, surpassing the previous high of 917 lbs. in 2014.

86

Feed Grains

Feedlot margins squeezed Feedlot break-evens continue to increase with both feeder cattle and feed prices up from last year. The Canfax TRENDS report shows projected feedlot margins, based on the live cattle futures, have been close to break-even in the first part of 2015 but will be negative in the fourth quarter.

Meanwhile, the cash market has provided a significant profit. This is about to change as break-evens continue to climb while cash prices have seasonally dropped.

Feedlot margins are expected to be less favourable in 2016, particularly if the U.S. market remains under pressure.

83

(05-14) average would suggest September should be an annual low with prices strengthening five to six per cent in the fourth quarter. However, September 1 cattle on feed were up 3.0 per cent from last year and fed cattle markets are expected to be steady with last year in the fourth quarter after being 7.0 per cent lower from January through September. In addition, larger carcass weights have meant fed beef production year to date is down only 3.4 per cent. If slaughter numbers match 2014 larger carcass weights will mean more high-quality beef will be available potentially removing some or all of the seasonal price rally.

Producers have the greatest capacity in history to respond to price signals for more production. Increased production does not only come from more cows in the herd; but through management and technology more pounds of beef can occur in a matter of months whereas previously it took years. Longer days on feed and heavier carcasses equal more pounds without herd expansion. This has implications for the cattle cycle which ultimately responds to the supply of beef.

prices averaged C$197.50/tonne in September up 31 per cent from last year. This has narrowed the feeding disadvantage in Western Canada and is discouraging further feeder cattle exports from going south.

80

Continued from page 43

Source: Canfax Research

www.canadiancattlemen.ca

BeefWatch

 canadian retail beef demand index 130

Source: AAFC, CBGA, Canfax

www.canadiancattlemen.ca

95 90

12

14

10

85 80

08

13

10

07

04

01

98

95

92

89

86

83

80

0.7

105 100

06

0.8

115 110

02

0.9

Index 2000 = 100

04

1.0

125 120

00

20-yr. average = 1.02

98

Slaughter + Exports - Imports (All classes)

1.1

0.6

Continued on page 46

Demand Index (2000=100)

1.3 1.2

Culling Rates down, but not enough The beef cow-culling rate is projected to drop from 13.8 per cent in 2014 to 12.4 per cent in 2015. While still above the long-term average of 11 per cent for a stable herd it is getting closer. Domestic cow slaughter was down 13 per cent from January to September; while live exports were down 20 per cent. Regionally cow slaughter is down 10 per cent in the west and 24 per cent in the east; while exports are down 40 per cent in the west and steady in the east. After being down significantly in the first half of the year, cow marketings have run closer to year-ago levels in the third quarter with concerns over dry pasture conditions and higher winter feed prices. Overall, cow marketings (domestic slaughter + exports) are projected to be down 10 per cent in 2015.

Alberta D1,2 cow prices peaked in April at $148/cwt,

94

 canadian female-to-male disposal ratio

CYCLE INDICATORS

96

Consumer Demand Strongest since 1989 Retail beef prices peaked in July 2015 at $20.27/kg before stabilizing at $20.12/kg in August. This is still 15 per cent higher than last year. In contrast, pork is only up 7.0 per cent from last year and poultry is up 5.5 per cent. The beef/pork price ratio has largely adjusted in 2015 and is almost back at the long-term average. In contrast, beef remains historically high compared to poultry at the meat counter. Canadian pork production, up 2.0 per cent year to date, has provided only minor pressure on the beef complex.

But U.S. pork production is projected to be up 7.4 per cent in 2015. This has created significant pressure south of the border and has indirectly impacted the beef market here. In 2016, U.S. pork production is expected to be steady as beef production grows. This is anticipated to bring the price relationship back in line with historical averages. U.S. poultry production is projected to be up 3.8 per cent in 2015 and up another 2.7 per cent in 2016. Broiler production was largely unaffected by HPAI. Larger production will keep poultry prices low in comparison to beef.

Have consumers hit the end of their rope? Not yet, retail beef demand is forecast to have held up in 2015 and be the strongest since 1989. The good news is it appears wholesale prices have finally been fully priced into retail prices. Retail beef prices were down modestly in August and should stabilize throughout the fourth quarter. After a 16 per cent increase in 2014 and 14 per

92

DEMAND

cent increase year to date in 2015, stable retail prices will give consumers a chance to adjust to a new price reality.

International demand has been a bumpy ride in 2015, but remains strong. From January through August 2015, Canadian beef exports were steady in volume but up 20 per cent in value. Reduced Canadian beef production, record-high beef prices, and the temporary trade restrictions following the February 2015 BSE case all contributed to hold down volumes. Exports have been supported by a lower Canadian dollar; but a major question is, can Asian demand be sustained particularly with slower economic performance? Growth in Asian imports is driven by higher incomes, so any uncertainty in economic performance translates into volatility in global beef markets. The announcement of the Trans-Pacific Partnership on October 5, 2015 has added optimism; but it will take time before it is ratified by all the countries involved and start impacting markets. Despite all of the uncertainty in global markets, international demand for Canadian beef in 2015 is projected to be the strongest in history.

90

the decline could be as large as 21-32 per cent, putting calf prices potentially as low as $230-$262/cwt. While this would be down from last year’s $288/cwt in the fourth quarter it would be still be well above 2013’s $165/cwt.

Cow-calf profitability will remain positive and strong in 2015. With several profitable years since 2011 cow-calf producers have rebuilt equity lost and are able to make infrastructure investments. All of the market signals are there to expand, weather permitting, but producers remain cautious.

Source: Statistics Canada, Canfax, US Beef Demand Study Group

C a t t l e m e n · N o v e m ber 2 0 1 5

45

BeefWatch Continued from page 45

Replacement Price Ratio

up 41 per cent from 2014. Prices dropped 9.5 per cent to $134/cwt in September, then plummeted to $120/cwt the beginning of October. Another 5.3 per cent decline is typically seen from October to November — this would put the annual low around $111-$114/cwt. Trim prices have recently fallen below year-ago levels with larger nonNAFTA imports (+26 per cent) and end cuts from fed cattle being ground into hamburger to increase supplies.

Alberta cows have traded at a premium to the U.S. market for much of 2015. The exception being July when drought-induced selling pushed prices down.

As the feed situation has become clearer and U.S. prices have dropped with larger grinding supplies the premium returned in September ($7.40/cwt). This is expected to keep cows in Canada in the fourth quarter.

Heifer Slaughter down Heifer marketings in 2015 are anticipated to be down 18 per cent compared to steer marketings which are projected to be down 8.0 per cent. The heifer slaughter ratio, the number of heifers marketed for every 100 steers, is projected to drop to 63, down from 74 in 2014 and below the 20-year average of 69. This would be the lowest heifer slaughter ratio since 2003 and would support breeding numbers in 2016.

The Alberta 550-lb. steer-heifer price spread has dropped from a high of $30/cwt in May to $23/cwt in September, similar to last fall. While part of the wider spread back in May was due to differences in performance at a higher price level, the decline also indicates less interest in retaining heifers compared to this spring.

This may rebound as the fall run gets underway. But given lower fed cattle prices this may not occur.

The female-to-male disposal ratio, which measures the number of females (heifers and cows) disposed for every male (steers and bulls), is the best indicator of whether the herd is declining or growing. At 0.96 females being slaughtered for every male in 2015, it is just above previous expansion years when it was 0.94. This may be setting up 2016 as a turn year for the Canadian industry.

(Replacement cattle price divided by slaughter price)

YEAR

2013

2014

 Alberta Fed Steer price vs. AAA cut-out value AAA Cut-out

A live fed steer

210 190

320

170 270

150

130

220

110 170

90

120

C a t t l e m e n · N o v e mb e r 2 0 1 5

Jan-15

Jan-14

Jan-13

Jan-12

Jan-11

70

Source: Statistics Canada, CMC, Canfax

46

Fed price C $/cwt

Cut-out value Cdn $/cwt

370

2015

QUARTER

Heifer calves (4-5)

Steer calves (5-6)

Yearling heifer (6-7)

Yearling steers (7-8)

Shortkeep steers (8-9)

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

Q4 EAST

1.58

1.62

1.37

1.40

1.35*

WEST

1.67

1.64

1.41

1.42

1.35

Q1 EAST

1.39

1.5 1

1.32

1.24

1.24

WEST

1.59

1.61

1.35

1.34

1.25

Q2 EAST

1.53

1.5 9

1.40

1.38

1.27

WEST

1.60

1.62

1.37

1.37

1.25

Q3 EAST

1.61*

1.65*

1.44*

1.42*

1.35*

WEST

1.72*

1.75*

1.52*

1.52*

1.43*

* Record highs, east and west

www.canadiancattlemen.ca

 vet aDvi c e

Enzootic Bovine Leukosis Part 2 — Control

P

art 1 of this article on enzootic bovine leukosis (EBL) was about the troubling news that bovine leukosis virus (BLV) is transmissible to humans, and the revelation that the presence of BLV in human breast tissue is potentially associated with an increased risk of breast cancer.

This article presents the basics about EBL control and its significance as a production disease.

Once before, we stood on this side of the Atlantic, hands in pockets, trying to convince the world that BSE wasn’t a big deal; that it hadn’t really jumped the species barrier. We must remember the world’s response to BSE when it finally appeared in Canada — as illogical as it turned out to be — a response that smothered the beef industry for nearly a decade and cost the industry billions.

Many people assume leukosis is a dairy issue, one eliminated by pasteurization. At the same time, they forget that 15 per cent of our meat supply comes from culled dairy cows and, unfortunately, not all milk is pasteurized.

Also, up to 10 per cent of beef animals carry the virus.

We have an opportunity to be more proactive this time, even if further research proves the breast cancer-EBL virus link turns out not to be substantiated.

Statements like, “there is no conclusive evidence of transmission,” and, “it is now generally thought that BLV is not a hazard to humans,” lulls the dairy and beef industries into a state of complacency. We must be very careful how the issue of EBL and human disease is handled from this point forward. Recent studies (2013-14) reporting BLV proviral or DNA segments in human tissues make data less speculative. Giving the impression that controlling EBL (the disease) and BLV (causative agent) is not in the industry’s best interest could become an unwieldy albatross around our necks, especially if research strengthens the association between bovine and human disease and if consumer sentiment escalates.

Initially, the reasons for BLV control centred on reduction of carcass condemnations and trade with countries that successfully implemented EBL eradication programs.

There is renewed interest in controlling

48

C at t l e m e n · N o v e m b e r 2 0 1 5

BLV as a production disease, especially in the United States.

Affordable tests, using serum, have very good sensitivity (98 per cent) and specificity (100 per cent). Tests, using milk, are also very good: sensitivity (95 per cent) and specificity (99 per cent).

In the view of Professor James Evermann, Washington State University, the question really should be, why not test for BLV? In the best interest of the dairy and beef industries it would be prudent to move, at a bare minimum, toward concerted and co-operative voluntary BLV eradication programs.

Four options to consider:

1. No action taken to test for or remove BLV test positive cattle, the primary approach taken on many farms in the U.S. and Canada.

2. Herd monitoring by blood- or milk-based antibody testing, and changes instituted to reduce viral spread through animal-agedependent management changes.

There are three distinct infection points: • Three to 20 per cent of infections occur during fetal development.

• The second infection peak occurs during calfhood, when up to 40 per cent of infections take place. This may be due to feeding colostrum from BLVpositive cattle or infection by bloodcontaminated dehorners, ear-tagging pliers, tattoo instruments or commonuse needles.

• The third peak was noted at the heifer/ mature cow ages which took infection levels up to 80 per cent.

It only takes a fraction of a drop (0.001 ml) of blood to transmit disease. Ear tagging; tattooing, subcutaneous, intradermal, or intramuscular injections, dehorning and castration are all high-risk procedures.

3. The third and fourth options are similar.

Initially test all cattle and close the herd, adding only BLV test negative cattle. The major difference is that in option three, animals are segregated depending on their BLV infection status; in essence, maintaining two subpopulations, BLV test negative and BLV test positive. In time the BLVs are phased out.

4. Cull any BLV-positive cattle and follow strict biosecurity procedures on all incoming cattle.

Common-sense production practices include:

• Use separate needles for each animal during vaccination or therapeutic procedures.

• Clean/disinfect blood-contaminated equip­ ment used for tattooing, ear tagging, dehorn­ ing, supernumerary teat removal, implants, esophageal feeders and other surgical procedures between animals.

• Use disposable equipment whenever possible.

• Use electrical or gas-burning devices rather than gouging equipment for dehorning.

• Use a new or cleaned rectal palpation sleeve for each cow.

• Use AI exclusively for breeding, ensuring embryo recipients, and all sires and dams are BLV free.

• Control stable flies and other biting flies.

• Segregate BLV positive cattle from negative cattle.

• Cull BLV test positive cattle, especially those with lymphocytosis, high lymphocyte counts.

• Minimize contact between newborn calves and BLV test positive cattle.

• Avoid feeding unpasteurized colostrum.

• Avoid contact with blood, tissues, and fluids at parturition.

• Train all personnel on BLV-prevention and biosecurity practices, including testing and isolating herd additions and managing age groups separately while minimizing contact between groups.

• Control blood-feeding insects, particularly in densely populated farm areas such as milking areas, free stalls and barns.

The search for an effective vaccine against BLV and other members of the retrovirus family has been elusive going back as far as the 1970s. A dependable vaccine that could be used for leukosis control is desperately lacking. Industry support for vaccine research on retroviral vaccines needs to be front and centre if EBL control is to jump forward. c Dr. Ron Clarke prepares this column on behalf of the Western Canadian Association of Bovine Practitioners. Suggestions for future articles can be sent to Canadian Cattlemen (gren@fbcpublishing.com) or WCABP (info@ wcabp.com).

www.canadiancattlemen.ca

CANADIAN FORAGE & GRASSLAND ASSOCIATION

www.canadianfga.ca • Ph: 506-260-0872

Hit the Books Have you evaluated your forage production costs yet?

Success isn’t getting a bountiful harvest in before the neighbours. It’s creating and evolving a sustainable business strategy.

fixed costs (machinery depreciation, storage), operating costs (seed, treatment, fertilizer, fuel, crop insurance) and labour.

In our last feature, we talked about the importance of feed testing to prepare for winter. By now you’ve likely taken all the samples you need, or have already received the results in the mail.

Besides determining what nutritional requirements you exceed or fall short on, there’s another reason to keep those numbers close to the office.

Once you have the numbers all done up, that feed analysis will need to be considered in your comparisons. It’ll also be a good opportunity to ask yourself some important questions. Were you able to harvest your forage on time?

What is the quality of the forage? Will you need to supplement your feed?

How does this year compare to others?

It might not be every forage producer’s idea of a good day, but calculating costs of production is essential to maintaining a sustainable business.

Forage production is justified when the cost of producing it is less than alternative feed sources (on a protein or energy basis) and the net result provides a return on the capital required.

First, knowing how much it costs to grow and harvest your forages will allow you to price it fairly (or, in looking for other feed, have a baseline for its value). Second, it will enable you to determine where improvements can be made, and whether or not other harvest strategies would be more valuable to your operation.

Determining cost of production will require a look at some of the basics, like

There’s nothing stopping you from getting started on calculating your cost of production today. And if developing your own spreadsheet doesn’t sound like a walk in the park, head to the web. There are numerous excel calculators available online, through university extensions and provincial governments.

”Knowing how much it costs to grow and harvest your forages will allow you to price it fairly (or, in looking for other feed, have a baseline for its value).“

The Canadian Forage and Grasslands Association is online with a newly refreshed website and online resource.

Connect with CFGA on Twitter @CFGA_ACPF and on Facebook!

Canadian Forage in the International Year of Soils – Capture the Intensity!

November 17 – 19th, 2015 Sheraton Cavalier Hotel, Saskatoon, Saskatchewan With the United Nations Food and Agriculture Organization having declared 2015 as the International Year of Soils, what better opportunity to showcase the contribution of forages to profitable livestock production, healthy cropping systems, and overall ecosystem health for Canadian society.

The 6th Annual CFGA conference will highlight the profitability of intensive forage production systems and the potential of forages to provide ecosystem goods and services for all Canadians.

Join us this November 17- 19th, 2015 in beautiful downtown Saskatoon, Saskatchewan for Canadian Forage in the International Year of Soils – Capture the Intensity!

www.canadianfga.com

 researc h o n t h e r eco r d

By Reynold Bergen

These Little Piggies Ate a Quarter-Pounder a Day

D

oes eating beef from implanted cattle cause young girls to reach puberty sooner?

Hormonal growth promotants have been used in beef cattle for a long time. The newest one (trenbolone acetate) has been around for nearly 35 years, while implants containing estradiol have been around for 60 years. Growth promotants improve growth rates and feed efficiency, but also reduce environmental impacts. A 2012 paper by Capper and Hayes (J. Anim. Sci. 90:3527-3537) estimated that producing the same amount of beef without growth promotants would require 12 per cent more cattle, 11 per cent more feed, 10 per cent more land, seven per cent more fertilizer, eight per cent more fuel, produce 10 per cent more manure and greenhouse gas, and increase retail prices by eight per cent.

Consumer concerns around the safety of the beef from implanted cattle are more recent. Plants also contain estrogen-like hormones (phytoestrogens), so a counter-argument is that “there are more hormones in the bun than in the burger.” A 2014 paper by James Magolski and co-workers at North Dakota State University reported on a study that used pigs to gain insight into whether growth implants used in beef production may cause young girls to hit puberty sooner (The Journal of Nutrition 114:1718-1724).

What they did: This research team fed four different diets to 24 closely related, two-month-old female pigs that had not reached puberty yet. Pigs are a wellaccepted model animal for human nutrition studies because humans and pigs have very similar anatomy and physiology. The Control group was fed a diet containing corn and a protein supplement based on canola meal. Canola contains relatively low levels of phytoestrogens. The Tofu group was fed the control diet, plus a tofu burger. Tofu is made from soy, which contains much more phytoestrogen than canola meal. The Implant group was fed the control diet, plus a quarterpound beef burger made from cattle implanted with 100 mg trenbolone acetate and 14 mg estradiol benzoate (e.g. Synovex Choice). The Natural group was fed the control diet plus a natural beef burger made from an unimplanted steer. All four diets contained the same amount of protein and energy, and all pigs were fed the same amount every day (3.8 per cent of body weight).

Pigs were weighed every two weeks, and blood samples were collected twice weekly. Estrogen activity was measured in both the diet and the blood samples. The pigs were slaughtered after they had reached puberty so that measurements could be made on the reproductive tract.

What they learned: Estrogenic activities of the diets were the same for the Control, Implant and Natu-

50

C at t l e m e n · N o v e m b e r 2 0 1 5

ral diets, but were up to 3.5 times higher for the Tofu diet. Plant-based diets can have much higher levels of estrogen activity than beef from implanted or naturally raised cattle.

Estrogen and progesterone levels in the blood were the same for the gilts on all four diets. How did that happen if the Tofu diet had significantly more estrogenic activity than the other three diets? This may be because dietary hormones often have very low oral bioavailability. The vast majority of hormones consumed in the diet is broken down by stomach acids or digestive enzymes; very few of them are absorbed into the bloodstream. Hormones that are injected or implanted reach the bloodstream and tissues, but hormones that are eaten rarely do. Although the Tofu pigs ate a lot of phytoestrogens, very little of it reached the bloodstream.

Effects on animal growth and reproductive characteristics were the same for all four diets. There were no differences in growth rate, feed efficiency, longissimus muscle area (pork chop), fat depth, age at puberty, uterine weight, uterine length, ovarian weight or ovarian activity among the four diets. The hormones in the beef or tofu burgers did not affect the pigs.

What it means: Hormones in beef from implanted or unimplanted cattle had no effect on the growth or reproductive development of young female pigs. Even the tofu-containing diet had no effect on any physiological, anatomical or reproductive measurements, even though the tofu-containing diet had much higher levels of plant estrogens than the other diets.

Pigs obviously aren’t identical to humans, but they are a well-accepted biomedical model for human nutrition studies. Using pigs as a biomedical model also allowed much more detailed and post-slaughter measurements to be collected than would be possible in a human study.

The close genetic relationships among the animals, and tight control over the diets, intake and environment also allowed this study to be done using a small number of pigs. This study demonstrated that young, growing gilts can eat the equivalent of a quarter-pound beef burger every day for an extended period of time with no impacts on how fast or efficiently they grow or when they reach puberty.

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.

www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

Think inside the truck You ship your market integrity with every load of cattle

People who golf quickly learn the term “mulligan.” It’s a chance to take a shot over with no penalty because you flubbed it badly.

There are no mulligans in cattle shipping. No chance to do it over if you make a poor decision.

Every load of cattle that goes out the chute carries with it your personal and industry market integrity. It might as well have your name on the side, “I (your name here) made the decisions on what was loaded, how they were treated and what you’ll get as my customer.”

Today’s cattle producers have the tools and knowledge to handle this. But in the rush of a busy work time it’s a good idea to make sure everyone on the processing and loading team knows what is expected.

Remember especially new people who may not be familiar with things.

A checklist

A simple rule is if you don’t want to walk them down the main street of Vancouver or Toronto, or if you don’t want to eat them yourself, don’t send them. Here’s a reminder of the big issues.

Physically fit. Check animals for any signs of physical issues that would make animals unable to handle travel. Things like cancer eye, or an inability to walk properly. If they can’t handle the trip to the end point and the waits, don’t send them.

Drug withdrawal. Simple. Make sure withdrawal times are met and check before sorting. Feed records may be separate from animal health so check them all so there are no surprises down the road.

Broken needles. Check records and identify any animal with suspect broken needles. Simplest solution is to slaughter for your own use. If you do ship them, make sure the next owner or the processing plant is informed and that this contact information is recorded.

Support your buyer. If you ship recently vaccinated heifers or backgrounded calves to the next feedlot, let the new manager know about the treatments. Something may happen to require an emergency slaughter. Note the date you did that for your own protection.

Keep current records. Make sure the withdrawal check with date is on record. Set an example of due diligence for your family and staff and your customer.

Trucking cattle can have high visibility with the public, and may be the only livestock they get to see.

Trucking sense. Use accepted transport standards like checking for possible slippery floors and proper animal densities.

The Golden Rule

Remember the Golden Rule of shipping. “Do unto others as you would have them do unto you.”

You would find it an inconvenience or an annoyance to receive cattle with incomplete or incorrect records. So make sure you support buyers with the information to make good decisions.

The VBP standard

Shipping is just one Standard Operating Procedure under the Verified Beef Production (VBP) program. Producers who are interested in continually improving their production standards are welcome to take a VBP workshop or review online.

VBP outlines industry-sanctioned practices for food safety.

Provincial contacts for VBP across Canada are available at www. verifiedbeef.org.

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 straigh t f ro m t h e h i p

By Brenda Schoepp

How clean is our Engine?

Woody breast has the poultry industry in a flap. Today, 50 per cent of the American broilers for slaughter suffer from the dense, dry tissue in the most expensive part of the bird. References to woody breast portray an industry in surprise and confusion. Hardly.

The move toward single-trait selection for huge breasts on birds has been an affliction. Coupled with hot diets, this created a situation where the birds’ feet are not the only thing dragging in the barn. Industry is scrambling to find a technology to fix this problem.

And therein lies the fiction. Finding a form of tenderization is like putting new feet on cattle with laminitis, extra spigots on a sow or ovaries in an infertile cow. Or, like adding a filter to the end of a muffler and calling it emission control. It does not work because it does not address the problem.

There are a multitude of events and outcomes, errors and arrogance that contributes to reputation risk. Every time an industry assumes single-trait selection won’t cause a problem or acidosis will not be counterproductive or that sows will be happy in crates it puts that sector’s reputation and the reputation of all food producers at risk. And we cannot hide.

To fully appreciate reputation risk we can take the Volkswagen emission control case as an example. It would be easy to do the appropriate — investigate, fix, fire and compensate. The difficulty lies in controlling or mitigating the reputation risk. Consider this; Volkswagen is second in the world behind Toyota for vehicle production and sales. Their car lines include Bentley, Lamborghini, Audi, Porsche, Skoda and SEAT. They manufacture these cars along with motorcycles, trucks and other wheeled vehicles in 100 plants in 27 countries. Owned by the Qatar Investment Authority, The State of Lower Saxony, Capital Group Companies and Porsche Automobil Holdings SE they had a net profit in 2014 of $10.8 billion euros. In addition they have been regarded as the higher end of middle-class cars for folks. Every year over 10 million diesel cars are sold under the Volkswagen banner.

As they bought a Bosch software system that is used by others, including Mercedes Benz, it is not in the cards to blame that technology. According to Bosch that software was “not pre-programmed to cheat.” That means that someone had to order the directive from within.

Meanwhile, VW stocks are collapsing and the board has decided to redirect consumer attention to electric cars.

The upside of this is that finally nearly 200 years after electric cars were developed, we might actually see them on the road. But that is not the issue here. The issue is that the consumer was cheated as VW focused on a single trait — sales.

Further investigation reveals that this is not the first

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time VW has been in the hot seat. In 2009 there was a criminal probe and in 2015 it was revealed that the board spent 24 months trying to hide research on a keyless ignition security flaw. One can safely assume that there is a culture imbedded within the board and upper management that is reflected in their actions and decisions. And this is the worst of all reputation risks. The fact that the software was redesigned to cheat and at a level of 35-40 per cent is a poor decision but the response that the board is hoping to redirect interest to ease the fallout is unacceptable.

Now that Volkswagen has lost its new CEO due to conflict with the board, we can assume that the board and upper management culture has dominated common sense. Volkswagen has just named an integrity officer and it is shocking that a company of this size did not have checks and balances in place. What is there to learn here?

What are the things we need to address today to avoid reputation risk tomorrow?

An environmental business scan would reveal that some of the pieces of the whole may need tweaking. Just like woody breast in foul, tough cuts in beef or housing in pigs may all be issues that the consumer sees in an unfavourable light. In the beef industry we tend to look inwardly because we have the Porsche of proteins. But it is Porsche who is getting hammered right now with share devaluation. How can we work as an industry with other proteins to ensure consumer safety and confidence while safeguarding production? Are we competitors or partners?

Are not all proteins guilty of productive, reproductive and skeletal deficiencies? Are not all proteins struggling with quality on the whole carcass and an increasing need by the consumer for transparent animal welfare practices? Safeguarding reputation is not putting your competing protein out to dry — it is working in collaboration to produce and create a product that the consumer has confidence in and has the data and culture to support it into the future.

I think that many of our young farmers get this because they interact at a very high level. We need to ensure they are part of the development of the protein industry as we move forward. Quality is becoming the issue and most certainly brand recognition has proven this. From woody breast and tough end meats and all other concerns in between the problem is the solution. For today we have to ask ourselves how clean is our engine running and foster a culture to mitigate all future reputation risk. c Brenda Schoepp is an inspiring speaker, consultant 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 2015

www.canadiancattlemen.ca

 prime cuts

By Steve Kay

TPP ratification is crucial

B

eef exports are the lifeblood of the North American beef industry, especially for Canada. The majority of its exports goes south to U.S. customers but it also depends on key Asian markets. So too does the U.S. It exports only 10 per cent of its annual production of muscle cuts but this is vital in adding money to the value of a live animal.

Japan has long been the U.S.’s most important export market. So the weaker sales to that destination this year have been keenly felt by exporters. Through August, exports were down nine per cent in volume at 146,575 metric tons and down 11 per cent in value at US$906.4 million. That’s because lower prices for short plates and other popular cuts failed to stimulate demand.

For the first eight months of 2015, total U.S. exports of beef cuts and variety meats were down 11 per cent in volume year on year to 703,231 mt and down five per cent in value to US$4.31 billion. Export value per head of fed slaughter has averaged US$286.51 this year, up US$9.28 from the same period in 2014. Exports accounted for 13 per cent of total production and 10 per cent for muscle cuts, down one percentage point from the same period last year.

Prior to the recent slowdown in Australia’s beef production, Japanese importers continued to stock up on Australian beef, benefiting from lower tariffs through the Japan-Australia Economic Partnership Agreement and the weak Australian dollar. Japanese frozen beef stocks thus remained at very high levels. In contrast, U.S. and Canadian beef still face tariffs as high as 38.5 per cent.

That’s why completion of the landmark Trans-Pacific Partnership (TPP) trade agreement last month was so important to the North American beef industry. It will progressively lower Japan’s and other countries’ tariffs on beef over 15 years. But this won’t happen any time soon.

The Canadian Parliament and the U.S. Congress each has to ratify the TPP. There’s more likelihood this will happen in Canada than in the U.S. That’s because the TPP agreement immediately became a political football as Republican and Democrat presidential hopefuls vied for voter support. Leading Democrat contender Hillary Clinton, once a TPP supporter, said she cannot support the agreement, and her opposition will complicate the White House’s efforts to get Congress to ratify it. This has increased the odds that Congress might not vote on the deal until after the 2016 elections.

Even if Congress eventually approves the TPP, U.S. agriculture and the beef industry won’t start to see any benefits from it until 2017. Implementation of the TPP is huge for U.S. agriculture, as exports of agricultural products to the 11 other TPP countries totalled US$63 billion in 2014. This was 42 per cent of total U.S. agricultural exports. The TPP region took US$3.9 billion worth or 55 per cent of total U.S. beef exports in 2014.

Beef exports will benefit from lower tariffs most in Japan and Vietnam. Japan will reduce its tariff from 38.5 per cent to nine per cent over 15 years. Duties on 74 per cent of tariff lines will be eliminated and reductions on the remaining lines include a 77 per cent cut for fresh, chilled and frozen beef. In Vietnam, tariffs currently as high as 34 per cent will be eliminated in three to eight years.

Canadian beef exports to Japan will see the same reduction in tariffs. Canada exported C$1.3 billion of beef to TPP markets from 2012 to 2014. Much of that was to Canada’s NAFTA partners and exports to Japan are only C$100 million per year. TPP will be far more beneficial for Canadian pork exports to Japan, as they total C$1 billion annually. But a reduction in Japan’s beef tariffs will still be important. c

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

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 CCA repo rts

By Dave Solverson

Our business goes on as usual

T

he Canadian Cattlemen’s Association (CCA) congratulates Prime Minister-elect Justin Trudeau, and the Liberal Party of Canada (LPC) for their convincing win in the October 19 federal election. The CCA looks forward to working closely with the new government. As I write this column, the new cabinet had yet to be announced but the CCA hopes to achieve the same close and productive relationship with the new LPC government that we enjoyed with the Harper government, and with the Martin, Chretien and Mulroney governments before that.

During the run-up to the election, the LPC responded to the CCA’s questionnaire on important beef industry issues. It is posted on the CCA website and I encourage you to read it if you haven’t already done so to get a good idea of the LPC viewpoint.

The new Liberal government has nearly 150 new members of Parliament (MP). Most of them are elected in urban/suburban ridings, and the rural representation that does exist in caucus is concentrated east of Ottawa.

The CCA will be following up to identify which members will emerge as the champions for agriculture across Canada. Of course, this will begin with the naming of the new minister of agriculture, likely on November 4.

It will also involve informing the broader Parliament on beef cattle producer issues and the CCA will be actively engaged in undertaking that work.

At the same time, the CCA understands that most of rural B.C., Alberta, Saskatchewan, Manitoba and southern Ontario remain represented by Conservative MPs who know agriculture and beef issues well. The CCA will continue to keep them in the loop on our positions and ask for their assistance when needed.

In October I travelled to Durango, Mexico, to participate in the Five Nations Beef Alliance (FNBA) annual conference. This trip is another fine example of CCA relationship building in the industry — not only with the other beef producer organizations that comprise the FNBA and other interested parties, but the youth component of the beef industry. I was pleased to have Young Cattlemen’s Council rep Brodie Haugan and Cattlemen’s Young Leaders participant Bree Kelln attend the meetings alongside myself and CCA officials Dan Darling, Dennis Laycraft and John Masswohl.

What a learning opportunity for these young leaders in Canada’s beef industry.

The trip to the State of Durango was enjoyable and informative. One thing that struck me throughout the ranch tours leading up to the conference was that the State of Durango has many similarities to parts of Canada. The area is cooler than most of Mexico, because of

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high elevation, and they are able to use bos Taurus genetics like we do in Canada.

In fact, the World Angus Secretariat was held at the same time as the FNBA meetings. A large contingent of Angus breeders from Canada were at the show in Durango and approximately 80 per cent of the cattle on display had Canadian bloodlines. Canadian seedstock producers are great ambassadors for the Canadian Beef Advantage.

Prior to the formal FNBA meetings in Mazatlan, CCA participated in side meetings with the other countries’ delegations. We have a longtime close relationship with our U.S., Mexican, Australian and New Zealand counterparts and now are getting to know the new members from Brazil and Paraguay. I was also pleased to see attendance of some producer guests from Uruguay who may seek to join the alliance in the future. A key message we shared is the importance for any potential members to understand and agree with the FNBA core principles on trade and sustainability.

I believe the Trans-Pacific Partnership (TPP) is an example of success for the FNBA. All the negotiators from all countries were given the same information and advice and it resulted in a favourable outcome for the global meat trade.

Speaking of a global meat trade, in October Canada began to accept imports of EU beef for the first time in 19 years.

In practical terms the move will mean very little in terms of quantity of EU beef entering Canada. It remains subject to a 26.5 per cent tariff and a small duty free quota that typically gets filled by Uruguay in the early days of each year.

On the positive side, it means that Canada is living up to the position that we demand of other countries in terms of recognition of our BSE status. Every EU country has the same or better BSE risk status as Canada, but until now we have been unable to acknowledge that out of concern that moving ahead of the U.S. could have negative implications for Canadian access to the U.S. Perhaps in a telling way of how much Canadians love their beef, some media were asking how consumers will be able to tell Canadian beef from European beef at the retail counter.

Of course consumers can look for the Canada Beef brand logo or the Canadian Grading mark system (AAA, AA, etc.). Both identify Canadian beef. Some suppliers also provide labels for regional branded programs of Canadian beef, such as Ontario Corn Fed. Positioning Canadian beef as the best in the world is part of the effort of the National Beef Strategy underway now. Producers can learn more about this at their provincial association fall meetings. c

Dave Solverson is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

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 TH E INDUST RY

NewsRoundup meat

Hot reaction to WHO report on cancer, red meat

Predictably red meat got another black eye when the World Health Organization’s International Agency for Research on Cancer (IARC) report linking red and processed meats and cancer was released in the Lancet journal last month.

Overall, the IRAC working group of 22 scientists from 10 countries classified consumption of processed meat as “carcinogenic to humans” (Group 1) on the basis of sufficient evidence for colorectal cancer.

Additionally, a positive association with the consumption of processed meat was found for stomach cancer. They also classified consumption of red meat as “probably carcinogenic to humans” (Group 2A).

In response, the Canadian Cattlemen’s Association noted IARC conducts hazard assessments, not risk assessments. “That means it considers whether meat at some level, under some circumstance could pose a risk.

“IARC has found hazards in about half of the agents it has reviewed,” says the CCA. In reaching the 2A classification, the working group’s review of 800 existing epidemiological studies from around the world “concluded that there is limited evidence in human beings for the carcinogenicity of the consumption of red meat.”

Colorectal cancer was its principle focus relative to red meat and a meta-analysis of colorectal cancer in 10 cohort studies reported a statistically significant dose — response relationship, with a 17 per cent increased risk per 100 grams per day of red meat.

The CCA says the American Society of Clinical Oncology (ASCO) estimates a person with an average risk of colorectal cancer has about a five per cent chance of developing colorectal cancer so if that person consumed 100 grams of red meat per day that would increase his or her risk of developing colorectal cancer by just under one per cent.

Current industry estimates peg average Canadian consumption at 50 grams of fresh red meat. “Accordingly, if there is an increase in the potential risk of colorectal cancer from red meat consumption, by these estimates it is small and must be considered relative to the very significant nutritional benefits that red meat provides,” says the CCA statement.

Continued on page 60

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Untitled-2 1

2015-10-20 10:12 AM

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News Roundup Continued from page 58

While red meat’s nutritional benefits were not considered directly in this evaluation, the report did note “red meat contains high biological value proteins and important micronutrients such as B vitamins, iron (both free iron and haem iron), and zinc.”

The World Health Organization has previously stated that two billion people — over 30 per cent of the world’s population — have anemia, many due to iron deficiency.

Beef is among the best food sources of well-absorbed iron. Meat has long provided an important source of nutrients for Canadians and the industry takes pride in providing high-quality beef products to consumers.

There are many theories why red and processed meat may be linked to cancer however, it’s important to note that no scientific consensus has been reached.

When it comes to processed meats the WHO working group lumped processed pork and beef and ham into its Group 1 list along with tobacco, asbestos and diesel fumes as a cancer risk.

The North American Meat Institute (NAMI) termed the report dramatic and alarmist. In a statement the industry association said, “classifying red and processed meat as cancer ‘hazards’ defies both common sense and numerous studies showing no correlation between meat and cancer and many more studies showing the many health benefits of balanced diets that include meat. Scientific evidence shows cancer is a complex disease not caused by single foods and that a balanced diet and healthy lifestyle choices are essential to good health.”

“It was clear sitting in the IARC meeting that many of the panellists were aiming for a specific result despite old, weak, inconsistent, self-reported intake data, said NAMI vice-president of scientific affairs, Dr. Betsy Booren. “They tortured the data to ensure a specific outcome.

“Red and processed meat are among 940 agents reviewed by IARC and found to pose some level of theoretical ‘hazard.’ Only one substance, a chemical in yoga pants, has been declared by IARC not to cause cancer,” said Dr. Booren.

“IARC says you can enjoy your yoga class, but don’t breathe air (Class I carcinogen), sit near a sun-filled window (Class I), apply aloe vera (Class 2B) if you get a sunburn, drink wine or coffee (Class I and Class 2B), or eat grilled food (Class 2A). And if you are a hairdresser or do shift work (both Class 2A), you should seek a new career.

“IARC’s decision simply cannot be applied to people’s health because it considers just one piece of the health puzzle: theoretical hazards. Risks and benefits must be considered together before telling people what to eat, drink, drive, breathe, or where to work,” she said.

National Beef Cattle Association beef checkoff nutrition scientist and registered dietitian, Shalene McNeill says the 22 experts on the IARC were unable to reach complete consensus on their report and had to settle for a majority agreement.

“Cancer is a complex disease that even the best and brightest minds don’t fully understand,” said McNeill. “Billions of dollars have been

Register . www.albertasoilhealth.ca or ARECA 780-612-9712

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www.canadiancattlemen.ca

NEWS ROUNDUP

spent on studies all over the world and no single food has ever been proven to cause or cure cancer. The opinion by the IARC committee to list red meat as a probable carcinogen does not change that fact. The available scientific evidence simply does not support a causal relationship between red or processed meat and any type of cancer.”

A large meta-analysis, published online in May in the Journal of the American College of Nutrition, analyzed the relationship between red meat intake and risk for colorectal cancer and concluded “red meat does not appear to be an independent predictor of CRC risk,” according to Dr. Dominik Alexander, the epidemiologist who conducted the research on behalf of the beef checkoff.

“There are a constellation of factors that are associated with the probability of getting cancer, which include age, genetics, socio-economic characteristics, obesity, lack of physical activity, where you grew up, alcohol consumption, smoking and even your profession,” says Alexander. “The bottom line is the epidemiologic science on red meat consumption and cancer is best described as weak associations and an evidence base that has weakened over time. And most importantly, because red meat is consumed in the context of hundreds of other foods and is correlated with other behavioural factors, it is not valid to conclude red meat is an independent cause of cancer.”

Packers

Harmony Beef back on track

Harmony Beef is now looking at April 4, 2016 as its startup date for the former Rancher’s Beef plant in Balzac after the Rocky View Council approved a development permit to construct a water-recycling facility on the site.

The Rocky View Council voted seven to one to issue the permit after 18 months of often intense lobbying by those opposed to reopening the plant that has already cost $25 million in renovations and new European equipment.

The next step is to obtain a building perContinued on page 62

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Northern Ontario website up and running

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Anyone tempted to take a look at northern Ontario as a place to expand their beef operation can start their search on a new website www.Farmnorth.com, developed by the Northern Farm Innovation Alliance working with OMAFRA, the provincial Agriculture Department.

It provides profiles of the 10 northern regions that offer everything from soil types to production statistics for the region, the major communities and numerous machinery, agribusiness contacts as well as municipal offices, schools and farm organizations.

Answer our survey — and have a go at winning one of our caps

We have a goal to be the best beef cattle magazine in the business. But we need your help. If you could just fill in this survey and return it to me, you would be helping us set the future editorial direction for Canadian Cattlemen. All you have to do is tell me what you like about the magazine, and what you

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

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 I no longer take an active part in farming If not an owner/operator of a farm, are you:

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

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 c) 45 to 54

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

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

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

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

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

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NEWS ROU NDUP

policy

Saskatchewan sets tighter restrictions on land purchases

The Saskatchewan government is set to lay down new law on who can and can’t buy up farmland in the province, backstopped with more enforcement and heavier penalties.

Agriculture Minister Lyle Stewart introduced amendments to the province’s Farmland Security Act, the legislation that already prevents non-Canadians and entities that aren’t 100 per cent Canadian owned from having more than 10 acres of Sask­atchewan farmland.

The definition of “Canadian-owned entity” in the act, last updated in 2002,

hasn’t specifically included pension plans or investment trusts, which in turn made those entities ineligible — but the amendments will specifically make not only pension plans, but administrators of pension fund assets and trusts, ineligible.

The amendments also tighten the definition of “having an interest in farmland” to include any type of interest or benefit (for example, capital appreciation), either directly or indirectly, normally associated with ownership of the land.

The amendments also require anyone financing a purchase of farmland to do it through a financial institution registered to do business in Canada, or through a Canadian resident.

The provincial Farm Land Security

Board (FLSB), which has the authority to grant exemptions to the landownership rules, will also get “new and expanded authority” for enforcement of the act.

For example, at the FLSB’s discretion, any person buying farmland would have to complete a statutory declaration. The amendments will also put the onus on a buyer to prove compliance with the legislation.

The maximum fines for breaching the act will rise to $50,000 for individuals, up from $10,000, and to $500,000, up from $100,000, for corporations — and the FLSB will get authority to charge “administrative penalties” of up to $10,000.

The legislation and regulations, once Continued on page 64

News Roundup Continued from page 63

passed, are expected to come into force by the new year.

Saskatchewan farmland values, until lately, had “lagged behind” those in Manitoba and Alberta, the province said. Values then started rising quickly, on stronger commodity prices, improved net farm income and “historically low” interest rates and relatively favourable loan terms.

The consultations were called in light of “much greater interest in Saskatchewan farmland, including interest from pension funds,” the province said.

The province’s online survey found 87 per cent of respondents didn’t support foreign ownership of Saskatchewan farmland, 69 per cent didn’t support foreign financing and 75 per cent didn’t support allowing pension plans or investment trusts to own such land.

At least one group, the Western Canadian Wheat Growers, recommended the four western provinces take a consistent approach and cap the limit for non-Canadians at 40 acres. British Columbia today has no restrictions, while Alberta and Manitoba have caps of 20 and 40 acres, respectively.

The Canada Pension Plan Investment Board (CPPIB), which has so far been allowed to buy farmland under the existing legislation, said in its presentation it supported having a “diverse set of participants” in the farmland market, providing “stability and liquidity” in the land market against any long spell of low commodity prices.

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Consider all the costs of backgrounding

When it comes to making a decision on backgrounding calves, it’s important to look at all of the costs involved.

“High forage prices this summer and fall have predominated farm discussions at coffee shops, auction markets and social media outlets the last few months,” says Ted Nibourg, farm business management specialist, Alberta Ag-Info Centre, Stettler.

“At this time of year the profitability of backgrounding calves also comes into question. Hay is usually a major component of backgrounding rations. However, focusing on just the feed costs can give the impression that backgrounding will be economically feasible this fall.

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NEWS ROUNDUP

the only ones. Numerous other costs are involved, and risk management has to be considered as well.

“Using an example with current feeder prices can illustrate a cost-of-production scenario for a backgrounding operation,” says Nibourg. “The example involves taking six-weight steers to eight-weights gaining about two lbs./day.

“Using Alberta prices from mid-October Nibourg calculated that steers averaging 650 lbs. in central Alberta sold for an average of $263/cwt for a total cost of $1,710/head. Eight hundred and fifty-lb. steers averaged $243/ cwt for a $2,066 value. Assuming the price on eight-weights holds, the profit potential is $356/head before expenses. Now, let’s look at all the costs.”

The two-lbs./day gain will likely take about 20 lbs. of feed per day consisting of six lbs. of barley and 14 lbs. of hay, each component averaging 10 cents/lb. A 100day feeding period will cost approximately $200 leaving $156/head profit potential. If feed is the only cost considered, this leaves a healthy profit even with strong hay prices.

However, other costs also come into play.

“Yardage can run about 50 cents/head/

day, which leaves $106,” explains Nibourg.

“A one per cent death loss will pull an additional $17 out of the mix. Carrying cost at five per cent on feeders drags the profit down another $23/head. Commissions will reduce the net another $22/head, leaving $44/head. Trucking, checkoffs and brand inspection can easily add $14/head. As such, total expenses add up to about $326 leaving a $30 margin. Feed costs could amount to 61 per cent of total costs for a typical backgrounding operation.

“The $30 margin is dependent on eightweight steers staying at $243/cwt,” says Nibourg. “Risk management is a cost that is difficult to calculate. As of Oct. 15, the Western Livestock Price Insurance Program (WLPIP) for feeders will guarantee a price of only $208/cwt for a premium cost of $54/head, leaving a negative $24/head margin if one chooses to go that route.

The break-even price for the example cited would be $240/cwt for 850-lb. steers. Basically, the WLPIP will only mitigate a price wreck and should not be looked upon as a profit centre in this scenario. The profit would have to come from a bullish market for feeders going forward.”c

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Letters Under the bus

So much for the current government’s promise to preserve the three pillars of supply management in Canada.

Giving away 3.5 per cent of our market in dairy and poultry to duty-free imports destroys the first pillar of supply management: the control of imports. This giveaway will cause havoc for dairy and chicken farmers.

The dairy and poultry marketing boards in Canada limit production with a quota system, but guarantee farmers a price that covers their cost of production, without any government subsidies. Now these farms will have to compete with American and New Zealand farms that do not have the same environmental constraints or restrictions on hormone use (i.e. bovine somatotropin) and receive generous government subsides such as the U.S. Farm Bill.

What did we get in return for giving away our domestic market? Nothing concrete for

sure, like a 3.5 per cent share of the other countries’ markets, just a promise to gradually reduce other countries’ import tariff rates and an inadequate compensation plan.

We will still have to undercut our competition to win over these other countries’ markets if we want to export our products to them.

Pity the poor dairy and chicken farmer who received all their income directly at point of sale, but will now have to fill out multiple bureaucratic forms to receive compensation for their loss of income from this new TPP deal, and pity the poor taxpayer who will have to foot the bill for the $3.9 billion compensation package.

Stop this bus!

Gib Drury, LaPeche , Que. We need to target young people

In regard to “Dropping in on the Animal Rights Movement” (Gren Winslow, October 2015), activists are strategically targeting young people in order to increase the popularity of veganism. As agriculturalists we should be taking the same approach.

Many young people such as myself are eager to support the industry, but we need the proper guidance and resources. We need to accommodate the consumers, the farmers and their animals while showing the relationship with practicality on the farm.

The extremist media that repress animal agriculture are simply irrational. Countless people are working hard to ensure standards are implemented for animal welfare.

Open farm tours and social media are a great way to do this. It’s true that all of our efforts may never be enough for some, but agricultural sustainability depends on the younger generations. We shouldn’t allow activists to blindside the public with unrealistic representations of our industry. We should invest in providing the truth behind agriculture. Many consumers are disconnected from farming, so they only see activists’ accusations. If we provide evidence of our welfare plans, management practices and codes of ethics, then they can decide for themselves the end strategy, the fate of animal agriculture.

Emily Walker, fifth-year student, Dalhousie University faculty of agriculture Truro, Nova Scotia

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 NEWS ABOUT YOU

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PurelyPurebred

Suggestions are always welcome. My phone number is 306-251-0011 Email: mike.millar@ fbcpublishing.com

 In 2017 The World Angus Forum will be held in Scotland, the home of the Aberdeen Angus breed. The forum will take place from Thursday, June 15 to Monday, July 3, 2017 and will incorporate a pre-forum tour in England, a post-forum tour in Scotland and the Royal Highland Show taking place in Edinburgh.

The forum is held every four years and provides a platform for the exchange of genetics information and breeding objectives, and also acts as a forum for youth involvement.

The forum will attract more than 800 Angus breeders, farmers and associated companies from all over the world, to listen to speakers, share their knowledge, expertise, experiences and network together.  Shirley Bilton, of Stavely, was recently recognized by the Canadian Blonde d’Aquitane Association with a lifetime achievement award. The presentation noted his involvement with the association in a number of capacities but also the example he and life partner Myrna Flesch set in building West Wind Blondes into the largest producer of Blonde cattle and the first to focus on polled fullblood genetics and ultimately the production of many “homozygous polled” fullbloods. “While

68

C at t l e m e n · n o v e m b e r 2 0 1 5

 This is the Canadian delegation of 37 at the Durango portion of the World Angus Secretariat in Mexico. Durango is the second leg of the three-location event wrapping up Oct. 27 in Mazatland/Sinaloa. a number of others have joined this growing trend and are also aiming to produce the same qualities, it is very evident that the root of their ‘polled’ and ‘homozygous polled,’ animals stem from strong West Wind genetics,” said the association in a letter to Bilton notifying him of the award.

Their herd has produced many champions in the ring and gained a reputation outside

of Canada as evidenced by the “number of West Wind embryos and offspring from AI bulls appearing across the globe.”

In recognition the Canadian Blonde d’Aquitane Association board named its newly created breeder of the year award, the Shirley Bilton Award for Breeder of the Year. It will be presented for the first time in 2016.

www.canadiancattlemen.ca

PURELY PUREBRED

 The Charolais Banner reports Whitewater Aphrodite 2A by Sparrows Fargo 811U and her Winn Mans Big Rig 639Y heifer calf at side, from WhiteWater Livestock, Haley Station, Ont., was named Grand Champion Female at the 2015 Expo Boeuf Show, October 10 in Victoriaville, Que. Judge Brent Saunders named Dubuc Adalie 317A

by Shelco Made Easy 512R and her WR Wrangler W601 bull calf at side exhibited

by Dubuc Charolais Senc, Ste-Eulalie as Reserve Grand Champion Female. Grand Champion Bull was McTavish Hallelujah 79B, sired by Pleasant Dawn Magnum 49Y from Cornerview Charolais, Cobden, Ont. and Kirlene Cattle Co., Brighton, Ont. while Post Alaska 836A sired by POST Yamaska 90Y from Ranch Ostiguy Charolais, St-Cesaire was named Reserve Grand Champion Bull.

stock Gentec conference held in Edmonton in October.

“Dr. Brian Wickham gave a summary of his visit to Canada during the summer to undertake a feasibility assessment on the genetic improvement practices employed here and how they can be improved. In his talk he outlined what a centre for genetic improvement could look like, how it should be governed and how it should operate. Referring to this presently fictitious centre as a Canadian Beef Improvement Network (CBIN), Brian said that it would tie in very well with the goals of the national beef strategy. Dr. Wickham is presently preparing a final draft of his overall assessment and that document will be available in the near future.”

The wrap-up video of the conference can be found in the latest news section of www. livestockgentec.com.

 Canadian Beef Breeds Council director of scientific and industry advancement, Dr. John Crowley of the University of Alberta recently reported on the Live-

 Her Royal Highness The Princess Edward, Countess of Wessex, toured the Royal AgriContinued on page 70

December 4-5

People’s Choice Gelbvieh Bull Futurity The Westerner, Red Deer, AB

December 5

GAA/BC Wish List Sale & Annual Meeting The Westerner, Red Deer, AB

December 12

Prairie Gelbvieh Alliance Female Sale Mineral Springs Spa, Moose Jaw, SK

January 9-14

National Western Stock Show Denver, Colorado

March 5

Davidson Gelbvieh & Lonesome Dove 27th Annual Bull Sale at the Ranch, Ponteix, SK

March 7

Severtson Land & Cattle Bull Sale at the Ranch, Red Deer County, AB

March 8

Gelbvieh Stock Exchange Sale Medicine Hat Feeding Company, Medicine Hat, AB

March 12

Foursquare 9th Annual Bull Sale Olds Cow Palace, Olds, AB

March 14

Twin Bridge Farms & Guests Bull Sale

Silver Sage Community Corral, Brooks, AB

March 16

Jay on the halter.

Fladeland Livestock Bull Sale

 This summer I had the pleasure of meeting and visiting with Albert Rimke of A M Ranching at the T Bar C Invitational golf tournament in Saskatoon. Albert is a director with the Canadian Hereford Association and runs a Hereford herd at Oak Lake, Man., with his wife Michelle and family, Jay, Samantha and Levi. He told me an incredible story about his son Jay and what he went through in 2012. Jay was going to Olds College and ended up in an accident with a severe head injury. STARS was brought in and Jay was transported to Calgary Foothills Hospital for surgery. He spent a month in ICU Calgary and eight weeks in extensive rehabilitation. He eventually made a full recovery. That year he donated 10 per cent of the proceeds from his 4-H steer to STARS. Over $2,500 was raised. This year in 2015 Jay decided to give again to STARS and $5,500 was raised. Jay thanks STARS for being a part of the rural community and is proud that his contributions help keep STARS in the air. He has since graduated with a diploma in ag management from Olds College and is taking an active role in the ranch and showing cattle at Agribition. www.canadiancattlemen.ca

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www.gelbvieh.ca C at t l e m e n · n o v e m b e r 2 0 1 5

69

PU R E LY PU R E B R E D

Continued from page 69

cultural Winter Fair with the Hon. Elizabeth Dowdeswell, lieutenant-governor of Ontario on November 13. The Countess of Wessex’s visit continues a long relationship between The Royal show and the Royal Family, which stretches back to The Royal’s inception. The fair received approval by His Majesty King George V in 1920 to use The Royal title. Queen Elizabeth II is The Fair’s Royal patron and members of the Royal Family have been guests of honour at the fair on numerous occasions over the years.

The Royal ran from November 6-15.  During the 2015 YCSA National Classic in Lindsay, Ont. the Friends of Canadian Simmental Foundation presented a cheque to the Young Canadian Simmental Association for $15,000. FCSF president Ken Lewis and FCSF auction co-chair Deanne Young presented the cheque on behalf of the foundation to YCSA board members Paige Holmquist, Dylan Foley, Cooper Snider, Sophie Wotten, Craig Matthews and Krista Whalen.

Canadian Simmental board of directors (l to r): Dan Skeels, Garth Rancier, Francis Gagnon, Kelly Ashworth, Lee McMillan, Maureen Smith, Blair McRae, Lacey Fisher, and Dave Millner.

 The 2015-16 board of directors for the Friends of Canadian Simmental Foundation was elected at the AGM. The board consists of chairman Ken Lewis, Spruce Grove, Alta.; vice-chair Brian Bouchard, Cochrane, Alta.; treasurer Marlin LeBlanc, Estevan, Sask.; secretary Deanne Young, Breton, Alta. and directors — Roger Deeg, Strathmore, Alta.; Mark Shologan, Westlock, Alta.; Ron Nolan, Markdale, Ont.; Glen Wotten, Lindsay, Ont. and representatives from the Canadian Simmental Association, Lacey Fisher, Amherst, N.S. and Lee McMillen, Carievale, Sask. c

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 Market Su mma ry

By Debbie McMillin

TheMarkets Fed Cattle The fed cattle market took a sharp downward turn in the past month due to a combination of factors: U.S. feedlots selling heavier cattle, pressure in the technical markets and larger local front-end supplies of heavier cattle. October opened with a new annual low of $160.73/cwt, the first time since March 2013 fed cattle were priced below the year-ago average. Since then fed cattle started to rally on limited cash trade to $169.15/cwt by mid-October, a 17 per cent drop from the spring high, but still $3.67/cwt higher than last year. Current cash-to-cash basis levels remain strong at -$4.15/cwt compared to -$18.46/cwt last year and the five-year average of -$13.32/cwt.

The October 1 cattle-on-feed numbers for Alberta and Saskatchewan are just over last year at 704,466 head. September placements were down 13 per cent at 215,617, a record low for this month due in part to the early influx of feeders off dry pastures this summer.

Marketings were also down but average carcass weights were up over last year by 29 lbs. to 930 lbs. The year-to-date steer-carcass weight is 31 lbs. heavier than last year. Steer slaughter year to date is off three per cent at 1,079,369 head while heifer slaughter is down 13 per cent at 577,184 head. Despite the weak dollar, fed exports are running 46 per cent behind last year at 157,380.

Feeder Cattle The feeder cattle market has seen significant pressure over the past several weeks.

A seasonal downturn in the fall run is generally expected but the rapid decline in such a strong market was difficult to swallow. The 850-lb. steers remained slightly above last year by mid-October at $244.90.cwt, $3.98/cwt higher than the same week a year ago. Although the current 850-lb. average is higher than last year just looking at the recent weeks the average has dropped $20/cwt in the past month. Cash-to-futures basis remains high in the Canadian market, with a www.canadiancattlemen.ca

current basis at $1.07/cwt. Last year the same week saw an 850-lb. feeder basis at -$28.47/cwt. The five-year average is closer to -$15/cwt.

Auction markets were reporting increased feeder calf volumes over the past month and in addition to regular auction sale volumes the number of cattle sold through the Internet and video auction as forward marketing has increased this year. The 550-lb. feeder steer average is $283.90/cwt which is up $2.68/cwt from the low just one week ago but $4.68/ cwt less than the same week last year.

Compared to historical data the current feeder calf prices are significantly higher, but it is still hard not to compare to just one month ago when the 550-lb. average was over $304/cwt. Buyer interest out of Eastern Canada offset some of what might have been exported but even with the lower Canadian dollar feeder cattle exports are 13 per cent smaller than a year ago at 264,199 head.

Non-Fed Cattle The pressure in the fed and feeder markets was also evident in the sharp decline in cull cattle prices over the past month. Seasonally cow prices tend to dip lower during the fall run however, in addition to the normal seasonal pressure lean trim prices decreased and imports increased leading to a disappointing cull cattle market. D1,2 cows in mid-October averaged $116.50/ cwt which is a drop of $15/cwt over the past month and $8.63/cwt under the same week in 2014. Butcher bull prices have also been under pressure trading at an average $137.14/cwt. Cow exports to date are down 21 per cent at 153,944 head while bull shipments to the U.S. are down just two per cent at 60,151 head. Canadian cow slaughter to date is down 14 per cent from a year ago at 257,389 head. Bull slaughter is 77 per cent larger than a year ago at 7,654 head to mid-October. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets 

 DE B’S OUTLOOK Fed Cattle It would appear that the annual lows are behind us. The technical markets should see some recovery in turn helping the cash market. Locally the bulk of the supply of heavy market-ready cattle has moved through the system leaving a tightened supply as we head towards a typically stronger demand period.

As the holiday buying approaches look for moderate recovery in the fed market. As always the Canadian dollar is a factor to keep an eye on moving forward.

Feeder Cattle It is important to watch feedlot profitability and break-even levels. Weakness in the technical markets has made it difficult for feeder buyers to lock in a selling price for fed cattle. If a correction takes place in the futures market feedlots will likely become more willing to step up to own more cattle in the coming weeks. The weak Canadian dollar has definitely helped hold feeder prices as high as they are relative to U.S. feeder prices. Positive movement in the currency will have a negative effect on feeder prices moving forward. Throughout 2015 fed and feeder prices have followed the same general pattern. If normal seasonal trends of tighter supply and increased holiday demand lead to higher fed cattle prices in the fourth quarter, feeder prices should draw some strength from that . Look for stability in the feeder market in the short term. Further out there is potential for some rebound, however, the highs for the year have been set and will likely not be broken. Watch the trade in the Canadian dollar as well as the fed cattle technical markets as buyers will be watching break-even and bottom line closely on the cattle they place for 2016.

Non-Fed Cattle Even as cull cow volumes see a seasonal increase during the fall run the actual supply should remain manageable simply due to the reduced Canadian cow inventory. Moving forward cull cattle prices typically strengthen through the fourth quarter as supplies tighten up and fed beef demand picks up towards the holiday season. Factors to watch moving forward will be the Canadian dollar, direction of lean trim as well as any strength in the fed market.

C a t t l e m e n · n o v e m b e r 2 0 1 5 71

MARKETS

Break-even Prices on A-Grade Steers 210

ALBERTA

190

340 310 280

170

250

150

220

130 110

Market Prices

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

210

ONTARIO

190

160

150

100

130

80

Canfax weighted average price on A-Grade steers

Break-even price for steers on date sold

2015 2014

2016 2015

October 2015 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $252.84/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81/bu.

Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.13/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 73.75/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 110.15/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168.28/cwt Break-even (March 2016) . . . . . . . . . . . . . . . . . 196.78/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $250.21/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.84/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.98/bu.

Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . . 77.78/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 107.01/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167.25/cwt Break-even (April 2016) . . . . . . . . . . . . . . . . . . . 190.95/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

140 120

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

(500-600 lb.)

160

170

110

Steer Calves

190

60

D1,2 Cows Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ontario

Alberta

2015 2014

2015 2014

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

Market Summary (to October 17, 2015) 2015

2014

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . . 1,963,814. . . . . . . . . . 2,129,513 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 884 lb.. . . . . . . . . . . . 853 lb.

Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,069,000. . . . . . . 24,529,000

Trade Summary Exports 2015 2014 Fed cattle to U.S. (to October 10). . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,726.. . . . . . . . . . .296,972 Feeder cattle and calves to U.S. (to October 10). . . . . . . . . . . . 265,825.. . . . . . . . . . . 316,621 Dressed beef to U.S. (to August). . . . . . . . . . . . . . . . . . . . . . 336.73 mil.lbs.. . . . . 318.41 mil.lbs Total dressed beef (to August). . . . . . . . . . . . . . . . . . . . . . . . 453.55 mil.lbs.. . . . 453.68 mil.lbs IMPORTS 2015 2014 Slaughter cattle from U.S. (to August) . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to August) . . . . . . . . . . . . . . . . . . 178.97 mil.lbs. . . . . . 197.68 mil.lbs *Dressed beef from Australia (to August) . . . . . . . . . . . . . . . 67.18 mil.lbs. . . . . . 45.40 mil.lbs *Dressed beef from New Zealand (to August) . . . . . . . . . . 34.71 mil.lbs. . . . . . .26.08 mil.lbs *Dressed beef from Uruguay (to August) . . . . . . . . . . . . . . 25.56 mil.lbs. . . . . . . 26.70 mil.lbs Canadian Grades (to October 24, 2015) % of A grades +59% 54-58% AAA 19.1 23.9 AA 21.5 9.3 A 0.2 1.5 Prime 0.2 0.6 Total 34.0 42.3

EAST WEST

Total graded 437,368 1,564,528

Yield – 53% Total 17.5 60.5 3.2 34.0 0.0 1.7 1.2 2.0 21.9 Total A grade 98.2%

Total ungraded 14,639 4,055

% carcass basis 80.1% 88.9% Only federally inspected plants

72

C at t l e m e n · n o v e m b e r 2 0 1 5

www.canadiancattlemen.ca

 market ta l k

By Jerry Klassen

Managing Risk in a Declining Market

I

’ve received many inquiries over the past few weeks in regards to managing price risk in a declining market. Many producers have been using the Western Livestock Price Insurance Program (WLPIP) over the past couple of years.

Recently, backgrounding operators have been asking how they buy price insurance when the costs are not conducive to insuring a positive margin. As one producer stated, it was going to cost him $80 per head to secure a $200 loss. I’ve also received questions from producers stating that the index on the price insurance program was lower than their local markets; thus these producers were expecting a payout but they did not receive one.

In this issue, I will discuss a few aspects of the current market environment to address these concerns. We’ve seen a $30 drop in the fed cattle market since the summer highs, which has trickled down to a similar decline in feeder cattle prices.

Backgrounding operators or cow-calf producers who are backgrounding calves this fall need to understand the Livestock Price Insurance Program. This program is based on the Chicago Mercantile Exchange feeder cattle futures, which is used to calculate a forward price. The forward price is the expected price when the feeder cattle will be sold. Looking at the appropriate futures month, the forward currency is used to convert the price into Canadian dollars and then the basis is subtracted from this forward price. The basis is made up of projected currency swings, current market conditions, the three-year average basis for the selected time frame and along with forecast of the basis at the current time. After calculating the forward price, the program administration comes up with the premiums for the appropriate amount of insurance starting at 95 per cent of the forecasted price. The administration has an index based on the market for each region of Western Canada on which the settlements will be made. This index can sometimes be higher or lower than the local auction market values.

The premiums or the cost of the insurance is very similar to buying insurance for any other program. If you require 95 per cent coverage, then of course this will cost more than if you only require 75 per cent coverage. Also, the program offers coverage in four-week increments from 12 to 36 weeks so if you want a longer time frame, the premium will be more than if you want a shorter period of insurance. Finally, the volatility in the market also comes into the equation because when the market is more volatile, such as a $20/ cwt drop within a four-week period, the premium will more expensive. Very simply, when there is a higher probability of a payout, the premium will be more expensive.

The U.S. and Canadian cattle complex reached historical highs this past summer and the market is now factoring larger beef production for 2016. Certain analysts are factoring in a one-billion pound year-over-year increase in U.S. beef production. The futures market, on which the Livestock Price Insurance Program is based, is weaker in the deferred months than in nearby position. For example, at the time of writing this article, the October feeder cattle futures was trading at US$193 whereas the May 2016 contract was at US$179. Secondly, it is very important to realize that in declining markets, the futures market leads the cash market lower, hence

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a futures market. Thirdly, studying past market behaviour, there is a “constellation in price activity” whereby, the deferred market can behave similar to the nearby market although trade at a discount.

This can artificially lift or support the deferred market but when the delivery period arrives, the fundamentals can actually be heavier causing prices to weaken. All these factors can lower the “index” of the price insurance program.

What do these backgrounding operators do in this declining market and environment of uncertainty? Owning unhedged cattle in a declining market can be painful. For cow-calf producers, the choice is obvious which is to sell sooner rather than later and don’t background your calves. For backgrounding operators, the logical option is to wait for signs of stability or bottoming action in the market.

The nearby futures will eventually trade at even money (the same price) as the deferred contract, which should allow a more realistic or risk-enduring scenario. Producers can then buy price insurance at a decent price that can protect against losses.

If you can’t wait to buy cattle, the producer is merely speculating that the market will recover. There are three options in this scenario.

First, backgrounding operators can be a scale-down buyer over time, which will also lengthen out the marketing period on the cattle. This will hopefully average out the losses and gains. From the onset, producers know they are in a difficult financial position and may need to cut back on numbers. Secondly, backgrounding operators may decide to actually finish a portion of the cattle when pencilling out if they should sell midway through the production cycle. This also spreads out the marketing time frame but it is a double-edged sword if the market continues to decline.

The third scenario is to be patient when buying your price insurance or your hedging opportunity. The cattle market is known for seasonal swings and the speculative fund influence in the futures market can often push the market to extremes. Given the volatility, the futures market may provide an opportunity to buy price insurance at a break-even through the four- or eight-month feeding period. Producers need to constantly monitor the market for these opportunities. If you buy cattle when the market is not allowing an opportunity for price protection, a seasonal swing in the market “due to the constellation factor” may allow an opportunity for buying the price insurance one or two or three months after the purchase of the calves. The cattle market is known for this due to the large swings in production from quarter to quarter and also the consumer herd behaviour throughout the year.

Last year’s unprecedented margins are not likely to continue. We are back in a period when producers need to be realistic about their margin potential because beef production is increasing and the uncertain economic outlook is influencing consumer activity.

Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd., and is president and founder of Resilient Capital specializing in proprietary commodity futures trading and market analysis. He owns farmland in Manitoba and Saskatchewan but grew up on a mixed farm feedlot operation in southern Alberta.

He can be reached at 204-504-8339.

C at t l e m e n · N o v e m b e r 2 0 1 5

73

 GOINGS ON

Sales&Events Events November 17-19 Canadian Forage & Grassland Association Convention, Saskatoon, Sask.

17-19 24th Range Beef Cow Symposium, The Ranch, Loveland, Colorado 18-19 Ontario Association of Bovine Practitioners Fall Meeting, Holiday Inn Hotel, Guelph, Ont. 23-28 Canadian Western Agribition, Regina, Sask.

23-28 Saskatchewan Angus Gold Show, Regina, Sask.

24 Cattlemen’s Young Leaders Fall Forum, Evraz Place, Regina, Sask.

25-27 Agricultural Excellence Conference, Ramada Plaza, Regina, Sask.

17

estern Stock Growers’ Assoc. Annual W General Meeting (at Alberta Ag Industry meeting), Red Deer, Alta.

17-19 Alberta Beef Industry Conference, Sheraton Hotel, Red Deer, Alta.,

March 23

anadian Beef Breeds Council Annual C Meeting, Best Western Port O’ Call Inn, Calgary, Alta.

June 14

2 016 FutureFare, Edmonton Marriott at River Cree Resort, Edmonton, Alta.

July 17-22 International Rangeland Congress, Saskatoon, Sask.

December

August

7-9

lberta Beef Producers Annual Meeting, A Sheraton Cavalier Hotel, Calgary, Alta.

8-10 Western Canadian Conference on Soil Health, Radisson Hotel, Edmonton, Alta.

9-10 Farm & Food Care Saskatchewan, Farms at the Table Conference, Saskatoon Inn, Saskatoon, Sask.

21-28 International Limousin Congress, Ireland

6

rey Bruce Farmers Beef Day, Elmwood G Community Centre, Elmwood, Ont. 14-16 Ontario Beef Industry Convention, Best Western Lamplighter Inn, London, Ont. 14-16 Western Canadian Association of Bovine Practitioners Conference, Sheraton Cavalier Hotel, Calgary, Alta.

20 Alberta Cattle Feeders Association Annual Meeting, Lethbridge, Alta.

20-22 Saskatchewan Beef Industry Conference, Saskatoon Inn, Saskatoon, Sask.

21 Saskatchewan Cattlemen’s Association Annual Meeting, Saskatoon Inn, Saskatoon, Sask.

22-23 Canadian Bull Congress, Camrose Regional Exhibition, Camrose, Alta.

December

February

2-3

January 2016

estern Canada Feedlot Management W School, Travelodge Hotel, Saskatoon, Sask.

4-5 Manitoba Beef Producers Annual Meeting, Victoria Inn, Brandon, Man. 16-18 Ontario Beef Farmers Cattlemen’s College and Annual Meeting, International Plaza Hotel, Toronto, Ont.

Sales November 21

3 9

C at t l e m e n · n o v e m b e r 2 0 1 5

eak Dot Ranch Ltd. Fall Bull and Female P Sale, at the ranch, Wood Mountain, Sask.

Cudlobe Bull Sale, Foothills Livestock Auction, Stavely, Alta.

January 2016 30

.C. Quantock “Canada’s Bulls” Bull M Sale, Lloydminster Exhibition Grounds, Lloydminster, Alta.

February 6

ill 70 Quantock Ranch Barn Burnin’ H Bull Sale, at the ranch, Lloydminster, Sask.

March

2-4

74

enton Hereford Ranch, at the ranch, F Irma, Alta.

5

algary Bull Sale, Century Downs, C Calgary, Alta.

Davidson Gelbvieh & Lonsome Dove Ranch 27th Annual Bull Sale, at the ranch bull yards, Ponteix, Sask.

August 9-13 B onanza 2016, Burning the Hereford Brand, Olds, Alta. c

 ADVE RTI S E R IN D EX Page Advanced Agri-Direct Inc. 25 65 Airdrie Trailer Sales Alberta Cattle Breeders Assoc.

59 68 Alberta Cattle Feeders 13 AT Ferrell 51 Boehringer Ingelheim 64 Canadian Angus Assoc.

Canadian Cattle Identification Agency 38, 39 OBC Canadian Charolais Assoc.

49 Canadian Forage & Grassland Assoc.

69 Canadian Gelbvieh Assoc.

IFC Canadian Hereford Assoc.

64 Canadian Limousin Assoc.

Canadian Red Angus Promotion Society 64 Canadian Shorthorn Assoc.

63 64 Canadian Simmental Assoc.

Case-IH 7 Cattlemen’s Financial Corp.

65 29 Cattlesoft-Cattlemax Cudlobe Farms 47 Ford Motor Company Canada IBC 64 Gilbrea Consulting Ltd. 65 Hi-Hog Farm & Ranch Equipment 9 Hill 70 Quantock Ranch John Deere 17 55 Junewarren-Nickle’s Energy Group Matchmaker Select 64 5 M.C. Quantock Livestock Corp.

Merck Animal Health 31, 33, 35 Merial 19 21 MNP LLP 60 Murphy Ranch 61 Nester Livestock 23 New Holland 60 Peace Country Beef & Forage 41 Peak Dot Ranch Ltd. Ridley Block Ops/Crystalyx 54 64 Riveside Welding Salers Assoc. of Canada 64 Saskatchewan Beef Industry 29 Soderglen Ranches Ltd. 53 57 Stromsmoe Angus & Herefords 12 Supreme International Ltd. 58 Tru-Test Inc. 62 Vantage Trailer Sales 27 Vermeer Corporation 15 Vetoquinol 11 Zoetis Animal Health

 Event listings are a free service to industry.  Sale listings are for our advertisers.

Your contact is Mike Millar at 306-251-0011 or mike.millar@fbcpublishing.com

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