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HOW FAST CAN WE INCREASE BEEF SUPPLIES? 路 BeefWatch

THE BEEF MAGAZINE

May 2015 $3.00

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DOGS EARN their KEEP

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Contents canadian cattlemen · may 2015 · Volume 78, No. 5

 P R EDATO RS

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Kangals will take on a pack when necessary to protect the herd.

guardian dogs earn their keep at Candll Ranch 12 FO R AG ES

FEATURES

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Good riddance to roundworms on pasture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Contents Contents of of Cattlemen Cattlemen are are copyrighted copyrighted and and may may be be reproduced reproduced only only when written written permission permission is is obtained obtained from from the the editor editor and and proper proper when credit is given to Cattlemen. credit is given to Cattlemen. Cattlemen and and Canadian Canadian Cattlemen Cattlemen are are Trade Trade Marks Marks of of Farm Farm Cattlemen Business Communications. Communications. Business Cattlemen is is published published monthly monthly by by Farm Farm Business Business Communications. Communications. Cattlemen Head office: office: Winnipeg, Winnipeg, Manitoba. Manitoba. Printed Printed by by Transcontinental Transcontinental Head LGMC. LGMC. Cattlemen Cattlemen is is printed printed with with linseed linseed oil-based oil-based inks. inks. Subscription rates in Canada — $41 for one year, Subscription rates in Canada — $41 for one year, $61 $61 for for 22 years, years, $87 for for 33 years years (prices (prices include include GST). GST). Manitoba Manitoba residents residents add add $87 8% PST. PST. U.S. U.S. subscription subscription rate rate — — $35 $35 (U.S. (U.S. funds). funds). Subscription Subscription 8% rate outside outside Canada Canada and and U.S. U.S. — — $55 $55 per per year. year. Single Single copies copies $3. $3. rate We acknowledge the financial support of the Govern­ We acknowledge the financial support of the Govern­m m ent of ent of Canada through through the Canada the Canada Periodical Periodical Fund Fund Canada of the Department of Canadian Heritage. of the Department of Canadian Heritage. Publications Mail Mail Agreement Agreement Number Number 40069240. 40069240. Publications Canadian Postmaster: Return undeliverable Canadian Canadian Postmaster: Return undeliverable Canadian addresses (covers (covers only) only) to: to: Circulation Circulation Dept., Dept., addresses PO Box Box 9800, 9800, Winnipeg, Winnipeg, MB MB R3C R3C 3K7. 3K7. PO U.S. Postmaster: Postmaster: Send Send address address changes changes and and undeliverable undeliverable U.S. addresses addresses (covers (covers only) only) to: to: Circulation Circulation Dept., Dept., PO PO Box Box 9800, 9800, Winnipeg, MB MB R3C R3C 3K7. 3K7. Winnipeg,

Guardian dogs earn their keep at Candll Ranch. . . . . . . . . . . . . . 12 Looking for a payoff from energy-dense forages. . . . . . . . . . . . . . 16

Looking for a payoff 16 from energy-dense forages

Drones give new perspective on herd management. . . . . . . . . . . . . . . . . . 22 Cell designs are hard to find. . . . . . . . . . . . 24 Verified Beef Production . . . . . . . . . . . . . . . . 27 Beef Watch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

 I N NOVAT I O N

How rapidly can we increase marketable beef supplies?. . . . . . . . . . . . . 34

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Drones give new perspective on herd management

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Congratulations! To our May survey winner, John Hamilton, Cambridge, Ont. This month’s survey is on page 41. Cover photo: Supplied by the Lockhart family.

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Comment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Newsmakers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Our History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Research on the Record. . . . . . . . . . . . . . . . . 18 Holistic Ranching. . . . . . . . . . . . . . . . . . . . . . . . 20 Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 CCA Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Straight from the Hip. . . . . . . . . . . . . . . . . . . . 36 Prime Cuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 News Roundup. . . . . . . . . . . . . . . . . . . . . . . . . . 38 Purely Purebred. . . . . . . . . . . . . . . . . . . . . . . . . 44 The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Market Talk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Sales and Events. . . . . . . . . . . . . . . . . . . . . . . 50 C a t t l e m e n · m ay 2 0 1 5

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 COMMENT

By Gren Winslow

AMR, get ready for it The feds have a plan

A

MR or antimicrobial resistance; the term certainly isn’t new, but it’s likely you will be hearing more about it now that Ottawa has released its Federal Action Plan on Antimicrobial Resistance and Use. Canada is also working toward endorsing a Global Action Plan by the World Health Assembly. In essence the federal government has started the clock running on a pan-Canadian plan to come to grips with AMR. As with all such plans action translates into lists of things to be done and deadlines for completing each task. There will be more surveillance, more stewardship in the form of education or communication with the public, more research and quite possibly more regulation. This is welcome news in one respect: it’s time nations started getting serious about this topic. Everyone agrees antimicrobial resistance is a clear danger to people, and animals. Antibiotics are vital to controlling disease in both so no one in agriculture or the human side objects to doing what is necessary to halt it or at least slowing the spread. Deciding what is necessary is a more complex question. The danger, of course, is that once you have deadlines people start looking for quick fixes to meet their targets, and that can do more harm than good. There are no quick fixes to AMR. As of now we know that the Public Health Agency of Canada will establish a new robust surveillance system to monitor and track AMR in animals and humans. It’s been testing for AMR in samples from abattoirs and retail beef since 2002. So far its surveillance indicates resistance to antimicrobials of the most importance to human medicine is very low, and not increasing. The same is true for multi-drug antimicrobial resistance. This backs up the findings on two sizable feedlot studies in 1998-99 and 2007-10. Very low levels of resistance to various bacteria were found in the cattle and best of all there was no evidence of transmission of resistant bacteria to the people working the feedlots who volunteered to be tested. A third study funded partly by checkoff dollars is underway and scheduled to wrap up in 2018. Researchers hope to determine if the use of important human antimicrobials in beef cattle contributes to antimicrobial resistance. They will also test for the prevalence of indicator bacteria (E. coli and enterococci) in drainage basins, surface water and retail beef downstream from the feedlots and compare the results to isolates obtained from human clinical samples. Canadian research has shown that less than 10 per cent of treatments in feedlots involve drugs used in human medicine. This includes the very important fluo-

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roquinolones such as Baytril A 100 and cephalosporins like Excenel and Exceed. These classes of drugs are used as a last resort to treat very serious infections in humans and animals. The so-called high-category macrolides like Micotil and Draxxin are again used sparingly to treat sick animals. The medium-category tetracyclines like Liquamycin and Aureomycin that are less crucial in human medicine make up a larger share of the 10 per cent. The other 90 per cent consist of ionophores like Rumensin that are not used in human medicine. Resistance to them would be problematic for cattle producers but not for medical doctors.

he danger, of couse, is that T once you have deadlines people start looking for quick fixes to meet their targets Thankfully the Canadian Cattlemen’s Association (CCA) and other livestock organizations have been at the table as this action plan was being concocted. Their role will be to keep insisting on science-based solutions. Nothing new there. The CCA has been preaching prudent drug use since the mid-1990s first through its Quality Starts Here program and more recently with its Verified Beef Production modules. A new one on biosecurity will offer best management practices to minimize the risk of introducing and spreading a disease within the herd. Even the best biosecurity measures including vaccinations cannot avoid all bacterial infections so there will always be a need for antibiotics to preserve the health of today’s cattle. This is where we are bound to see more regulation as this action plan moves ahead. It’s already happening. Health Canada last month served notice that it intends to tighten the oversight on own-use permits for imported active pharmaceutical ingredients. The changes would exclude drugs sold by prescription, medically important drugs, medicated premixes for livestock feed and drugs for which Canada has not established a a maximum residue limit. Meanwhile the Veterinary Drug Directorate of Health Canada has asked the industry to remove growth promotion claims. Food firms like McDonald’s and Costco are getting into the game and even the auditor general of Canada has issued a report on antimicrobial resistance. This topic is starting to have the smell of powder keg about it. Let’s hope the Health Canada action plan can keep the discussion focused on reality determined by science. c

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UP GN

U

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SI

because you are always on the job

BON

reward yourself

club

join the Vétoquinol Club We rarely have the chance to thank you.

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Vétoquinol Club is a rewards program and our way of thanking you for sharing our passion in animal health. Vétoquinol Club lets you: • earn points on Vétoquinol product purchases; • redeem your points for amazing rewards; • get members only access to special offers and events. s I G N u P To Day a N D r e a P T H e b e N e F I T s

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15-01-27 14:07

 THE INDUST RY

NewsMakers Anne Brunet-Burgess will be appointed general manager of the Canadian Cattle Identification  Agency  on June 1. For the past six years she has been the general manager of the Canadian Anne Brunet-Burgess Limousin Association. Prior to joining the CLA she was the office manager of Remington Land and Cattle. David Bolduc of Cudlobe Angus has been reelected president of the Canadian Beef Breeds Council for another term. Garner Deobald is vice-president. Stephen Scott representing the Canadian Hereford Association was the only new director elected to the board. Mike Millar of Grandora, Sask., is the new national advertising sales representative for Canadian Cattlemen effective May 18. He will work out of his home at Grandora where he and Mike Millar his family operate a small Simmental herd. In the past he has served in sales management positions with ABS Canada, Keystone Agri-Marketing, Highline Manufacturing, National Alfalfa Trading Co., and for the past 15 years with DTN, the agricultural information company. Duncan Morrison is the new  executive  director of  the  Manitoba  Forage & Grassland Association replacing  Wanda  McFadyen. He joined the MFGA as outreach co-ordinator in Duncan Morrison 2013 and held that position until his promotion last month. The Cattlemen’s Young Leaders (CYL) program has announced its 2015 national mentorship recipients. They are: • Alberta: Benjamin Campbell – Black Diamond, Robert Dixon – Vermilion, Jodi Flaig – Two Hills, Brett Hassard – Medicine Hat, Elizabeth Homerosky – Calgary, Angela Kumlin – Duchess, Penny Patton – Athabasca, Byron Whitford – Lethbridge, Brittany Wiese – Bentley. • Saskatchewan: Breeanna Kelln – Duval, Shane Klepak – Melfort, Brandon Sparrow – Vanscoy.

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• Manitoba: Breanna Anderson – Swan River. • Ontario: Bethany Storey – Guelph, Brendan Zettler – Teeswater. • Nova Scotia: Ellen Crane – Truro. After a long search the Canadian Forage & Grassland Association (CFGA) has hired a new executive director, Cedric MacLeod of Fredericton, New Brunswick. He and his wife operCedric MacLeod ate Local Valley Beef, a grass-fed beef ranch in western New Bruswick, in addition to MacLeod Agronomics, an agri-environmental consulting firm. To this he will now add the part-time executive director position of the CFGA. Cedric has an agriculture degree from the Noval Scotia Agricultural College and a master’s degree in soil science from the University of Manitoba. He’s also served as the executive director at the Canadian and New Brunswick Young Farmers’ Forums. Gaylene  Groeneveld is the  new  CEO  of   the Canadian Gelbvieh Association although she is no stranger to the organization having worked for the breed for 10 years as Gaylene Groeneveld assistant office manager and publisher/editor of the breed publication Gelbvieh Guide. Larry Weatherby is the chair of the Nova Scotia Cattle Producers (NSCP) for 2015-16. Joining him on the executive are treasurer Wayne MacKay, CCA rep George Smith and past Larry Weatherby chair Terry Prescott. The remaining board members are: Danford Murphy, E. Rose MacDonald, Ralph Thompson, Randy Neily, Derrick Canning and Curtis Moxsom. During its annual meeting BLM Meats was presented with the NSCP inaugural Kings Mutual Cattle Producer of the Year award. BLM Meats is a co-operative marketing venture of three Pictou County beef farmers, Blair Battist of Lochview Farm, Lyon’s Brook; David Lavers of Auchencairn Farm, Rockfield; and Danny

MacDonald of Little Dan-D Farms, Mount Thom to market hormone- and antibiotic-free beef. The COO of Heartland Livestock, Stewart Stone was elected president of Canadian  Western  Agribition (CWA) during its annual meeting last month. Stone has volunteered with Stewart Stone the Regina show for 18 years. The vice-president is Bruce Holmquist, general manager of the Canadian Simmental Association. The remaining executive members are Chris Lees of Arcola, Blake MacMilBruce Holmquist lan of Nokomis, Bryce Thompson of Regina. Dr. Angela Canovas has been appointed assistant professor  of  beef/small ruminant  genomics  at the University of Guelph department  of  animal and poultry science startAngela Canovas ing June 15 where she will be expected to work closely with the Ontario and Canadian beef industry. She will also play a key role at the university’s Centre for Genetic Improvement of Livestock. She has a PhD in animal breeding and genetics from the University of Lleida in Spain and comes to the department by way of UC Davis where she has been working as a post-doctoral fellow and Fulbright Scholar. She has published 20 peer-reviewed papers, many of them in high-impact journals. Dr. Louis Kwantes is the new president of the Alberta Veterinary Medicine Association. He is a companion animal practitioner in Sherwood Park, Alberta. The AVMA conducted a public awareness campaign in April to educate its members, animal owners and the general public about the global threat of antibiotic resistance to human and animal health. The campaign was led by Dr. Duane Landals, a former president of the Alberta and Canadian Veterinary Medical Associations. c

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 our histo ry

Frank White’s Diary (A Diary History of the early Cochrane Ranche) Notes by Alex McTavish

The Cochrane Ranche Company Ltd. was founded by Senator Matthew Henry Cochrane in 1881. The ranch was originally located on a 109,000-acre land lease at Big Hill (now Cochrane, Alberta). The ranch was stocked with cattle from Montana, U.S., brought in two large drives in 1881 and 1882. The second drive was plagued with snowstorms en route and most of the herd starved during the winter of 1882-1883. In the summer of 1883 the ranch operations and the remaining herd were moved to a new site on the Belly River, southwest of Fort Macleod, Alberta. The Big Hill site was transferred to the British American Ranch Company Ltd. in February 1884. The ranch at Big Hill was managed by Major James Walker, 1881-82, and W.D. Kerfoot, 1882-84. Frank White was treasurer of the Big Hill ranch, 1882-83, and manager of the Belly River ranch, 1883-84. In 1885 William F. Cochrane, the senator’s son, took over as manager. The ranch was sold to the Church of Jesus Christ of Latter-Day Saints (Mormon) in 1905 and the land opened for settlement. Source: ArchivesCanada.ca March 3rd, 1883 Pine Creek. Fine and mild. Jacques cannot haul the hay. Rode from his place to Campbell’s six miles up the creek, calling at Mr. Robb’s on the way. Neither Whiteman nor Campbell can haul the hay. Rode to Glenn’s, about six miles. Left Jenny to rest and walked to farm and back. Rode from Glenn’s to Calgary and got there at 7:30 p.m. Settled month’s account with I.G. Baker. Co., and had talk with Ben Arnold. The Pine Creek district evidently was a good grass country, as many chose to homestead there in 1883, when the whole country was open for settlement. Mr Robb mentioned above was Edward Robb, who came in by way of Benton in 1881, bringing his wife and small son, Morris. Morris still survives and at present lives in Great Falls, Montana. March 4th, 1883 Calgary. Cloudy, misty and cold. Ben Arnold leaves Calgary. Arranged with Maj. Walker to build ice house, 20 x 24, for $220. Left Calgary for Big Hill, called at Steins and talked about ice. Followed wheel track to crossing within eight miles of Big Hill. Ice all broken up. Struck out for Jumping Pound www.canadiancattlemen.ca

camp at 5 p.m. Mist settled down at 6 p.m. and got to haystacks about 8. Thought trail would take me to Thompson’s camp, but it took me to river crossing two miles below. 10:20 p.m. left Jenny and crossed ice on all fours. Dark and misty, struck out for Big Hill upstream but at 11:30 found myself going in opposite direction. Turned back and reached Big Hill at 1:30 a.m. Capt. McIlree Pocklington, Kennedy and Padmore at Big Hill. It is difficult to determine whether the Majors and Captains are members of the Mounted Police or ex-members, as they carried their title in name, into civilian life. March 5th, 1883 Big Hill. Cloudy and windy. A.M. resting, talking with Beaupre about logs, etc. and making arrangements about Venner. Squibb refused to take oxen to Calgary and concluded to leave. There is a creek named Beaupre west of Cochrane, probably called after the above -mentioned Mr. Beaupre. March 6th, 1883 Big Hill. Fine and warm. A.M. went with Kerfoot on foot to coal mine. Made arrangement with Hewitt and Stubbs about timbering coal mine. Stubbs walked back with us and agreed to give me quarter interest in his mining prospects. He has half, Kerfoot quarter and I a quarter, up Red Deer 200 miles from here. P.M. Settling with Venner. Mail from Calgary, letter from Annie dates Jan. 29th. The Cochrane coal was used by Calgary blacksmiths in the early days. It was suitable for welding iron, because of its freedom from sulphur. The mining prospect on the Red Deer River was also coal, likely in the vicinity of Drumheller. March 7th, 1883 Big Hill. Clear and fine. 8 a.m. on Jenny to Calgary, W. Powers with me. Travelled by summer river trail, got to Calgary at 2 p.m. and started for Glenn’s at 3 p.m. Scott carried my bedding down. March 8th, 1883 Glenn’s. Cloudy and stormy, fierce blizzard blew for about an hour but soon cleared up.

Rode Jenny to Govt. Farm and she got away from me, caught her at the farm. Another Hereford bull died of inflammation of the lungs. Doyle in trouble. Stallions taken to farm. Called at Glenn’s on way back from farm. P.M. Saw Messrs. Stinson, Denny and Pocklington. Polllinger took hayrack to farm. Shorty and Long commencing work. March 10th, 1883 Calgary. Got letter from Christie saying more than ordinary quantity of beef was being served out. Started with Stein up river driving Jenny and Pat to look at lumber for Shaganappi Point corral. Drove on ice most of the way. Found Shorty with the Sarcees all night but no one with the Stoneys at Syndicate camp. Reached Big Hill at 3 p.m. Mr. Kerfoot crossed us on the way. Walked with Gilchrist back to Stoneys’ camp and forbade them skinning unless Larondelle is with them. Brown commenced work by taking the “jack” down to the farm. The skinning of the dead cattle required considerable watching. The hides were sold for $2.50 each to the I.G. Baker Co. March 11th, 1883 Big Hill. Clear and very fine. 8 a.m. started with Stein in buckboard for Calgary. Led a horse and carried grub for Shorty who is watching the skinning gang. Sent Pollinger to tell Larondelle he must superintend all skinnings. Arrived at Calgary 2:15 p.m. Spent afternoon with Mr. Kerfoot, Capt. Kennedy and Maj. Dowling. Eve. with Capt. Denny talking about barley. Agreed with Mr. Bowen to take 4,000 lbs. of barley from Macleod. Barley 6c, freight 4c. Old Sun in from Blackfoot says they are out of beef. Mr. White was evidently experiencing difficulty in supplying the Blackfoot Indians with their quota of beef steers, as the losses to the Cochrane herd had been so great. J. Bowen was manager of the I. G. Baker Co. at Calgary. c Frank White’s diary was a regular contribution to early issues of the Canadian Cattlemen. You can find the full text from this column in the Dec. 1946 edition in the history section along with other articles from previous issues of Canadian Cattlemen on our website at www.canadiancattlmen.ca.

C a t t l e m e n · M ay 2 0 1 5

7

 pests

By Debbie Furber

Good Riddance to Roundworms on Pasture

Deworming a few weeks after turnout is being touted as a good way to reduce roundworm loads in pasture.

D

eworming programs typically target roundworms in the gastrointestinal tract, when in fact it takes a live host and grass for roundworms to complete their life cycle and perpetuate infections. This makes grazing season an opportune time to deworm because the only way cattle pick up new roundworm infections is by ingesting third-stage larvae (L3) and the only place roundworm eggs can develop through the larval stages is on grass. Imagine if you can, the ballooning larval population on pasture if each cow in a 500-head herd is infected with 1,000 female worms and each lays 200 eggs every day. That’s 100 million eggs a day that end up in manure pats from the adult animals alone. Parasitologists are now promoting a deworming treatment five to six weeks into the grazing season as a way of reducing the roundworm load on pastures and curtailing reinfection of cattle during the grazing season.

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The idea is to let cattle vacuum up larvae developing on the grass early in the grazing season. The early-stage larvae die inside the gastrointestinal tract. It takes about 20 days in calves and up to 40 days in mature cattle for the infective L3s to become egg-laying adults. So deworming at this time provides a one-two punch, cleaning up the cattle and stopping egg shedding for the next four to six weeks, says Roy Lewis, a private veterinary practitioner from Alberta and a technical services veterinarian with Merck Animal Health. The company is in the process of summarizing three years of trials at the Western Beef Development Centre in Saskatchewan looking at the economic benefit of deworming cattle on pasture in Western Canada using its oral dewormer, SafeGuard. (See sidebar.) Routine deworming in spring before turnout and/or in fall isn’t a guarantee that pastures will be free from roundworm lar-

PHOTO by Jeannette Greaves

vae come spring. Although transmission can’t occur in winter, because larvae need grass, moisture and warmth to reach the infective L3 stage, it has become obvious that larvae can survive Canadian winters on pasture. “We absolutely know that clean cattle going out to pasture pick up lots of larvae, in some cases within six weeks of being on pasture. Larvae seem to have a finite life and if not picked up in spring, by midsummer they are starting to die off from desiccation,” Lewis explains. Another survival mechanism is inhibited L4 larvae in yearling and adult cattle. L4s are the L3 larvae ingested late the previous season that hibernate instead of progressing to the adult stage. None of the dewormers currently available is effective against inhibited L4 larvae. So if some adult worms were resistant to the product used last fall, the Continued on page 10

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Irish forage specialist brings research expertise to Canada By Duncan Morrison — Manitoba Forage and Grassland Association

a NSERC visiting post-doctoral fellowship at the Lethbridge Research Centre with Dr.’s Karen Beauchemin and Tim McAllister. The opportunity to apply for a position in the U of M’s Department of Animal Science arose in late 2012. “Manitoba has a strong agricultural sector and a well-respected faculty of agriculture at the University of Manitoba,” says McGeough. “The position involves systems-based research in which I had particular interest.”

Emma McGeough’s Irish eyes were likely smiling indeed on that day back in 2010. As a recently successful PhD candidate for her doctoral thesis on the use of ensiled forages for finishing beef cattle and effects on methane production and animal performance at University College Dublin and Teagasc Animal & Grassland Research and Innovation Centre in Ireland, McGeough came upon the opportunity to pursue her interests in forage, grassland and livestock systems research in Prairie Canada. “I grew up on a mixed beef, dairy and poultry farm in Ireland and so my interest in cattle, nutrition and forages stemmed from there,” says McGeough, who now spends her days as an assistant professor, Sustainable Grasslands/Livestock Production Systems in the Department of Animal Science at the University of Manitoba. While the university has been her home base for two years and a bit, McGeough started her Canadian journey in Lethbridge, Alberta where she completed

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

McGeough has seen some similarities in livestock and forages between her homeland and her new home. And — as one might predict — some obvious differences. “There are many similarities in terms of the type of livestock and the extensive use of pasture that exist between the two regions with the most notable difference being in terms of the climate,” she explains. “Ireland has a much more temperate climate and does not face the same winter challenges, namely the extreme cold and snow. Thus winter hardiness of forages is an important factor here.”

and myself and Dr. Tim McAllister and Dr. Karen Beauchemin at the Agriculture and Agri-Food Canada (AAFC), Lethbridge Research Centre in Alberta,” she says. “We are taking a holistic approach to calculate how improvements in the efficiency of beef production in Canada over the past 30 years have impacted the environmental footprint of beef.” McGeough says the second study is the evaluation of perennial and annual forages for stockpile grazing of beef cows in late fall/early winter, a project between several researchers at the U of M, Dr. Paul Jefferson (Western Beef Development Centre), Dr. Bruce Coulman (University of Saskatchewan), Manitoba Agriculture Food and Rural Development and Manitoba Beef Producers that aims to provide new knowledge on stockpiled grazing to extend the grazing season.

When not teaching the agricultural minds of the future in the classrooms and study halls of the U of M, McGeough has been involved in a number of research projects. Two of these studies are funded by the Beef Cattle Research Council and are national in scope with outcomes that will be applicable to producers across Canada.

“We have five sites across Manitoba and Saskatchewan which will allow us to assess the suitability of forages for extended grazing under a range of growing conditions including soil type, topography, and precipitation,” says McGeough. “Through consultation with producers and other stakeholders via an industry-led steering committee the project aims to provide Prairie producers with information that will allow cattle to remain on pasture longer and reduce the economic and environmental cost of raising cattle. Both of these projects will be completed by 2018.”

“Determining the environmental footprint of beef production in Canada is a collaborative project between the U of M’s Dr. Kim Ominski, Dr. Getahun Gizaw

McGeough is also excited to be a part of the new Beef Cattle Research Council New Researcher Mentorship Program launched in the summer of 2014.

p ests

Continued from page 8

stage would be set for an egg-laying frenzy in spring. The test for resistance is a simple fecal egg count taken before the treatment and two weeks after. Anything less than a 90 per cent drop in the egg count is considered evidence of resistance building, Lewis explains. Recent work in Canada by Merck and an independent researcher found egg-count reductions from various pour-ons ranged from nil to close to 90 per cent. Most products reduced egg counts by 30 to 70 per cent. The company’s 2012 cross-Canada survey of roundworms in cattle showed an overall average of 26 EP3G (eggs per threegram sample). Cow samples averaged 15.2 EP3G with 76 per cent above the five EP3G economic threshold for deworming mature animals. The threshold for calves and yearlings is 10 EP3G. The survey samples from calves averaged 24.0 EP3G with 67 per cent above the threshold. Yearlings averaged 32.0 EP3G with 71 per cent above the threshold. “This clearly shows that in Canada, with our colder climate putting parasite transmission at pastures in suspended animation, internal parasite resistance is still becoming a problem,” says Lewis. Deworming cattle on pasture and alternating and stacking classes of dewormers are strategies

that will help achieve effective parasite control and slow the evolution of resistance to current dewormers. Safe-Guard is a fenbendazole dewormer, whereas all of the pour-on products are from the macrocyclic lactone class. Roundworm populations resistant to pour-on dewormers won’t have built-in resistance to Safe-Guard because the modes of action differ. Fenbendazole is delivered straight to the roundworm in the abomasum, small and large intestines and kills on contact, but it won’t control parasites that live outside of the gastrointestinal tract. The macrocyclic lactones are designed to control parasites that live inside and outside of the gut, so they need time to be absorbed through the hide into the bloodstream and transported to the infection sites. There is no evidence grubs and lice are developing resistance to the pour-ons. Likewise, there is no evidence cattle roundworms have developed resistance to fenbendazole over the 25 years it’s been available. As a precaution, Merck has started sampling roundworm populations in cattle to monitor for signs of resistance to its product. Resistance to pour-ons snuck up on U.S. producers and veterinarians a dozen years ago after years of treating them like the silver bullet for parasite control. A fecal egg count is a simple way to find

 bottom l i n e

Does deworming pay? Cattle have more tolerance to roundworm infections than sheep, bison and horses, so it’s rare to see outward signs of infection in cattle. Inside, though, roundworms take a toll on performance by damaging gastrointestinal tissues. Reduced feed intake is apparent, suggesting that roundworm infections actually depress appetite. Research shows they also suppress the immune system, making animals more susceptible to disease, but weakening their response to vaccination. It’s difficult to tell if treated calves do put on extra pounds without having a control group for comparison. At the Western Beef Development Centre in Saskatchewan, cows were dewormed with Safe-Guard drench just before turnout and cows and calves

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were dewormed on pasture 35 days later by adding Safe-Guard powder to mineral. In 2012, treated calves averaged 18.2 pounds more than the control calves at weaning for a net return of $15.05 per calf. In 2013, even though fecal egg counts were much lower than 2012, treated calves had a 26.8-pound advantage, for a net return of $21.25 per calf from the treatment. Treated cows were also 60 pounds heavier at weaning than untreated cows. Results from the 2014 trial weren’t publicly available by press time. It involved only cows with heifer calves and looked at the economic benefit of deworming on pasture coupled with use of a growth implant.

out if any treatment is effective. Gather heaping tablespoons from at least 20 fresh manure pats, seal the representative sample in a bag, keep it cool and deliver it to the local veterinary clinic. Most can do worm counts under a microscope right on site. Deworming with Safe-Guard

Resistance and the need to vary treatment strategies have spurred a resurgence in the use of Safe-Guard, partly because it’s easy to administer on pasture without having to run cattle through a chute. It can be used as a chute-side drench but Lewis says the preferred use on pasture is as a powder mixed with minerals or feed. SafeGuard pellets are more often fed with grain in feedlots and bison operations. The powder has to be thoroughly mixed in with the mineral or feed because only a small amount is needed so it needs to be evenly distributed for every animal to get a good dose. It’s also light so more likely to blow away when just sprinkled on top. Intake will be variable, but when thoroughly mixed 80 to 90 per cent of cows and calves will consume an effective dose. Overdosing is not a concern since the toxicity is very low for animals and dung beetles and other insects in the manure. In Canada Safe-Guard is considered a drug, not a feed additive so you’ll need a prescription from your vet to purchase it. To figure out the correct mineral-toSafe-Guard ratio, monitor mineral intake during the weeks leading up to treatment and estimate the total weight of all animals, including calves, at treatment time. The dose is five milligrams per kilogram of body weight. Mix that amount into the mineral the herd will consume over a week to 10 days and place it in a feeder protected from the elements. The withdrawal time is 13 days after the Safe-Guard-mineral mix is consumed. In feed spread the amount needed to dose the herd over three to six days’ worth of feed. A second treatment may be needed depending on the roundworm load, weather conditions, and whether lungworms are a problem because their life cycle differs somewhat from the roundworm. More details are found at www.safeguardcattle.com, or give Lewis a call at 403-308-3057. Related articles from Canadian Cattlemen: Don’t Ignore Drug-Resistant Parasites (September 2012), Do We Need to Worm Livestock at Turnout? (April 2013). c

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 vet aDvi c e

ABILITY TO TRANSMIT DISEASE IS NOT UNIFORM

T

he unprecedented increase of emerging infectious diseases in wild and domestic animals and humans does not follow predictable patterns. Disease outbreaks like influenza H5N2 in birds — especially recent incursions of the virus affecting turkeys in Central Canada and Midwestern U.S.; human Ebola in West Africa; equine herpes virus (EHV1) in North America, and five outbreaks of foot-and-mouth disease (FMD) in Korea between 2000 and 2011 leave little doubt that we do not understand how disease agents are transmitted within and between species. Often overlooked is the fact that not every individual within a given population contributes equally to disease transmission. In 1896, Italian economist Vilfredo Pareto, described the 80-20 rule based on a simple observation: 20 per cent of pea pods in his garden contained 80 per cent of the peas. From this and other observations, science was handed the Pareto principle that states for many events, roughly 80 per cent of the effects come from 20 per cent of the causes. Pareto’s principle has application to many viral and bacterial diseases affecting animals. The lack of uniformity in disease transmission within a population depends on how individual hosts respond to disease pathogens. It is not uniform, due mainly to super-spreaders within every subset of a population. This is the 20 per cent of those infected that contribute to 80 per cent of the transmission. While super-spreading can be linked to the degree of contact between individuals and differences in pathogen load, other factors are at play. Predicting the spread of a disease and changes in the number of infected individuals within a population is typically performed using epidemiological models that track numbers of susceptible, infected, and recovered individuals. One fault in many models is the assumption that populations of both animals and people are homogeneous, and that the “infected” are equally capable of spreading disease. We now know that is not the case. Individuals vary in their ability to maintain and shed infectious organisms. Some maintain average or low pathogen loads, while others support high pathogen loads and become super- shedders. Super-shedding characterizes a wide range of bacterial and viral infections, and represents a major consideration in design of prevention and control strategies for animal diseases — both new and old, especially those that brood economic ruin for national industries. Adding to the implications for super-shedders in animals is the fact that nearly 60 per cent of animal diseases potentially involve humans. Not everyone agrees on the definition and importance of superspreaders (those who have more points of contact with others) and super-shedders (individuals who emit greater quantities of viruses or bacteria). Scientists also debate how frequently super-spreaders are likely to appear as asymptomatic carriers (infected but not showing clinical signs) in a population. Super-spreaders typically amount to roughly 20 per cent of a given population, yet account for transmission of about 80 per cent of many infectious diseases. The phenomenon has been observed, among other contagions like the global SARS outbreak in 2002 and 2003 and as far back as Typhoid Mary, a cook in New York who

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infected dozens of people with typhoid fever in the early 1900s without falling ill herself. Dr. Tony Goldberg, professor of epidemiology at the University of Wisconsin-Madison’s School of Veterinary Medicine provides two classic examples in support of the super-shedding phenomenon. “ Super-spreaders can be a big problem among farm animals. The virus causing bovine viral diarrhea can infect dairy cows early in life, causing them to shed large amounts of the virus without showing symptoms themselves. They become immunologically tolerant so don’t become sick, yet other infected cows produce less milk or suffer reproductive problems.” In another example, Goldberg’s research has shown that American robins, as a species, seem to be super-spreaders for West Nile virus, a mosquito-borne disease. Robins are “able to maintain the viral infection without getting sick.” Super-spreaders are known to exist for a number of diseases carried by animals that get spread to humans (zoonosis): E. coli, giardia, cryptosporidia, and campylobacter are examples. They also exist for animal diseases like BVD and persistently infected animals, Johne’s disease; and bovine leucosis. Swine are supershedders of FMD virus. Super-shedding is recognized as a significant contributor to the amount of E. coli O157:H7 that makes its way from pasture or feedlot pen and into packing houses. In the view of U.S. Agricultural Research Service microbiologist Terry Arthur, “Adding to our knowledge of super-shedding would help keep beef safe.” Although super-shedding of E. coli O157:H7 by cattle is relatively uncommon — about two per cent of the cattle population — super-shedding events contribute significantly to human risk. Scientists are working to find the reasons why some animals spread disease more than others. Recent experiments suggest the immune system plays a role — not just in protecting against infection but also in the transmission of pathogens. Future research needs to examine: the relationship between super-shedding and super-spreading events; how contact rates and shedding events affect disease prevalence and its predictability; factors associated with development of pathogen load, and early detection of supershedders; genetic or physiologic biomarkers that could be used for early detection of highly infectious individuals; the impact of environmental factors on shedding and whether super-shedding is a gene-controlled trait. Detection of highly infectious individuals for many diseases is currently not possible because mechanisms behind super-shedding are largely unknown. Coupling the determinants of super-shedding and disease transmission is a missing component of effective control for many diseases. The contribution of super-shedders to epidemics can be disproportionate. The nub of success often sits with identifying the 20 per cent piece early. 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).

C a t t l e m e n · M ay 2 0 1 5

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 COVER STO RY · p r e dato rs

By Debbie Furber

Atlas, a one-year old Turkish Kangal.

Guardian Dogs Earn Their Keep at Candll Ranch

A mix of breeds work best on the Lockharts’ year-round pastures. Some stay with the stock while others go after the predators

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C

ody and Liesl Lockhart didn’t know a thing about livestock guardian dogs (LGDs) when they started ranching with Cody’s parents in southern Alberta. That all changed five years ago after moving to their own place near Debden, Sask., where they now own a flock of 1,200 sheep and custom manage 750 cattle year round with help from their pack of 11 livestock guardian dogs. Predator pressure is high in this region of the Parkland bordered by the untamed wilds of Prince Albert National Park, a forestry management zone and First Nations land. Wolves, coyotes, cougars, bears — you name it, predation specialists have confirmed kills and the presence of all of them on their ranch. “In the beginning we were losing a market lamb — 80- to 90-pound lambs — every

day to coyotes. At the time we had 400 cows and when they started calving on pasture in April we started losing calves to coyotes, 12 for certain and I suspect more,” Cody says. The economic losses and mounting stress were enough to put them out of business had they let it. “Even if you do manage to eliminate the problem population, a new breeding pair will come in,” he explains. “That’s when we started looking at dogs. Some people say LGDs don’t work, but we’ve found that’s just not true. The dogs take their job seriously and have become an important part of our overall risk management strategy.” “The goal is to make our dog pack formidable enough that wolves and coyotes decide to find an easier meal,” Liesl says. The pack concept grew from their experiences as they learned about each breed’s instincts and capabilities. They don’t profess to be experts, but were willing to share their successes

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predators

and frustrations with producers at predation workshops organized by Saskatchewan Agriculture and with a U.S. group that showcased how the Lockharts use dogs to mitigate livestock-predator problems in a video, now on the ranch’s website. In a nutshell, they’ve found that success has a lot to do with expectations and time spent working with and monitoring the dogs. They have to be given work appropriate to their instincts and ages, taking into consideration pasture size, terrain, size and grazing habits of the livestock, and predator pressure. Their sheep and cattle are out on pasture year round. The main sheep pasture is sixmiles square, which proved too challenging for Great Pyrenees on their own. This white breed and the Maremma dogs added later, are great for staying with stock and are trained to the electric fence early in life. They bark a lot and try to round up the animals, but they’re not much of a match for a pack of coyotes or a wolf. “Two Pyrenees could work great if you calve in corrals, but don’t expect that if you have a coyote problem and then get Pyrenees that two will work just as well,” Cody

says. Likewise, you can’t expect two dogs to cover a 300-acre pasture, especially if it has rolling terrain and you have an existing predation problem. For reinforcement, they brought in Anatolian Shepherds. These large tan dogs are more muscled, athletic and aggressive than Pyrenees. If they put the chase on predators, the white dogs will still stay with the stock to discourage predators sneaking in from other directions. After losing two dogs to predators and some others ripped up, they invested in another tan breed, Turkish Kangals, after they were warned of wolves loitering a halfmile from their sheep. Kangals are even more aggressive than the shepherds toward predators and will take on a pack when necessary. They tend to patrol the perimeter and if they start a chase, it’s not over until it ends, fortunately for the Lockharts so far, in eliminating the predator. Three more dogs were lost by the time their Kangals reached working age, so they took the additional measure of protecting all the dogs with spiked collars. At $140 each the handcrafted collars made in Oregon,

Responsible antimicrobial use to avoid resistance

have been a worthwhile investment. They haven’t lost a dog since and their veterinary bills for stitching wounded dogs back together are way down. “Since introducing the Kangals and spiked collars we don’t have any livestock losses when we have the right number of dogs. That’s quite a change from when we started,” Cody says. Eleven working dogs seem to be the right number for their current operation and they always have pups in training because it takes about two years to develop a great working dog. The Kangals travel back and forth on their own between the sheep and cattle three miles away and seem to maintain an appropriate number at both spots. “You’d think with 11 dogs, they’d pack up but they don’t; they come from all corners of the fields,” Liesl says. “The pack setting is very valuable for teaching new pups much faster and so they know how to behave around other dogs, livestock and people. The support of the pack helps because the Continued on page 14

Responsible use can not only save production costs, it reduces the chance of important antimicrobial drugs becoming less effective in animal and human medicine.

TIPS: Using antimicrobials responsibly

• Have an accurate diagnosis before using antimicrobials • Follow all veterinary and/or label instructions (dosage, treatment time, withdrawal time, etc.)

Learn more in this video at beefresearch.ca/AMR

• Ask your veterinarian whether a tetracycline-based antibiotic should be used first (e.g. Oxytetracycline, Liquamycin, Biomycin) before moving to an antibiotic of High Importance (e.g. Micotil, Draxxin, Zuprevo, Zactran) or Very High Importance (e.g. Baytril, A180, Excenel, Excede) in human medicine • Prevent cattle illness to reduce the need for antimicrobial use by implementing vaccination programs, biosecurity practices, and low-stress weaning techniques

BeefResearch.ca/AMR has the rest of th e information you need to know.

The BCRC manages the research allocation of the national check-off and funds leading edge research through Canada’s Beef Cattle Industry Science Cluster.

p r e dato rs

Continued from page 13

dogs are not as likely to get killed by predators and they don’t have to work so hard.” Basic training

Fierce as they are at defending livestock from predators, LGDs are characterized by submissiveness to humans and an instinct to bond with something. Socializing pups with people is part of the early training on their ranch. Firm boundaries need to be set so that they’re not hanging around the yard, but the idea that owners shouldn’t make eye contact with the dogs, pet them or praise them is old school. “That just wouldn’t work for our situation (with three small children). There are bigger issues when you don’t socialize them,” Liesl says. “Everyone is uneasy around them and you don’t know how they will handle strangers, so for us, socializing and working go hand in hand.” All of their dogs are now trained to sit in a kennel and be handled on a leash. Most often that’s a necessary skill when pulling porcupine quills and deworming the dogs every three months. Even then they still have to make occasional trips to the vet for repairs. Feeding is part of the socializing process, too. They put out food, take it away and repeat so the pups don’t become aggressive about food. As mature dogs, they eat for about 10 minutes a day and then wander away. The cost for premium dog food to maintain good body condition is about $5,000 a year for the pack. If you are buying trained LGDs they recommend choosing dogs that have been socialized because it’s difficult to change their attitude or train them to a leash the older they are. In their experience whether they were buying trained dogs or training their own pups, once the dogs bond with livestock, that bond will hold with any group of animals they are given to guard. “The bonding instinct is strong and you just have to nurture it so they work independently of you,” Liesl explains. The objective when training young pups is to match the tasks with a pup’s readiness and ability as it grows. Bonding starts at weaning around four months of age with a bottle-fed lamb in a kennel run or an Electranet enclosure with a shelter. When there aren’t any bottle babies around the yard, they set the kennel out in the sheep pasture so that the first introduction between flock and dogs is through the

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kennel. Then they add an older lamb to the kennel as the pups gain confidence. The pup is let out under supervision until about six months of age when it’s ready for 24-hour shifts. Full-time duty at this age when a pup is still growing is too exhausting so it needs breaks from work until it is amalgamated into the pack. It’s important that the pup not be left to work alone and be monitored closely, especially when the predator pressure is high. Partnering a pup with an older dog works best, but two pups together can work, as well.

ing up the stock a bit. Don’t panic if a dog draws blood on an animal, it won’t ruin the dog as some say. Reprimand the dog verbally and, if needed, use a dangle stick or triangle-shaped PVC yoke collar. A dangle stick is a knee-length chain with a stick at the end attached to the collar so that the dog can’t run without knocking its knees. This stage seems to last for a couple of weeks to a month and then it’s smooth sailing. “A six-month-old dog does lots of work for you deterring predators, but if a problem animal is coming in, it will try but it won’t succeed at killing a coyote. You’re asking too much,” Liesl says.“I’d say a dog isn’t fully working until it’s about two years old. That’s the age we trust them on their own and feel pretty confident we won’t have behavioural issues.” Top tips for success

“ You’d think with 11 dogs they would pack up but they don’t; they come from all corners of the field.” Cody and Liesl Lockhart Debden, Sask.

When no bottle baby is available pups can be put together in a kennel run with a shelter on the pasture, somewhere near water where they are sure to meet some cattle. Alternatively, pups could be trained with one or two cow-calf pairs in a puppy-proof pen equipped with a safe place for the pups to get away from the cattle. It doesn’t take much for large animals to injure a pup and dampen his confidence. The pups should remain in a supervised area until five to six months of age when they are moved to a larger supervised pasture with a kennel to provide them with a secure home base. Have patience when they hit the teen years because they can be a little too energetic for their own good and start rough-

• Maintain the right number of dogs to cover your pasture and herd/flock size and deal with the predation pressure. There’s no such thing as a producer who needs one dog. LGDs seem to prefer to work in pairs and work together well, whereas a single dog might get bored and seek your company or burn out at a young age from working round the clock. • Male and female dogs work equally well but they must be neutered or spayed. It doesn’t ruin their drive to defend livestock. • Check the dogs daily when in the herd so you can deal with issues right away, such as removing deadstock so it won’t attract predators. Consider additional fencing, not so much to keep predators out, but to cut down paddock size for ease of monitoring. • Secure the dogs well if you decide to trap, shoot or snare or call in someone to get rid of problem predators when your dogs can’t deal with them because that behaviour will get passed to the predators’ young. • The greatest hazards are road traffic and neighbours. The Lockharts visit their neighbours to explain the dogs’ value to their operation and explain that while they look fierce, they don’t act that way toward people. All they ask is that their neighbour use the command “back to your sheep” to send the dogs on their way home, or call them to come and fetch the dogs. In addition to wearing a spiked collar, each dog is spray painted with a large marking on each side of the body so the neighbours know they are the Lockharts’ dogs and, hopefully, hunters don’t mistake them for strays. For more information about LGDs in general and Kangal pups for sale visit www. candllranch.com or call 306-724-4451. c

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 forages

By Heather Smith Thomas

Looking for a payoff from energy-dense forages

C

layton Robins, the current executive director of the Manitoba 4-H Council, has been researching forages for a number of years. In 2008 he was part of a team from Canada that went to Argentina to look at the forage-fed beef value chain. “We spent most of our time there with Dr. Anibal Pordomingo who was their guide and translator in addition to being a renowned beef and forage scientist. He showed us a slide one morning (that) demonstrated plant water-soluble carbohydrate (sugar) levels in cereals as they advance physiologically,” recalls Robins. “As the sugars changed, they looked at animal gain. There was a very linear and well-correlated relationship. As the sugars went up, animal gains went up, to impressive levels. We had been struggling with how we could make forage finishing work, as part of our research program. That was a light-bulb moment to me, realizing that we needed to look at plants differently,” he says. “We dabbled with trying to do some evaluations at the (Brandon) research station while I was still there. A couple of years later I left the research community to take the job with 4-H, and didn’t get a chance to finish up that work. But I still wanted to pursue this and learn a few more things about it. I realized that one of the best opportunities to maybe find some of those answers was the Nuffield program. Nuffield Canada is part of an international organization of scholars, founded on the development of leadership in agriculture, and based on the international pursuit of knowledge in order to inspire change. Robins applied to this program and was fortunate to be chosen as one of the 2013 scholars which gave him the opportunity

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“ As the sugars went up, animal gains went up, to impressive levels.” Clayton Robins executive director of the Manitoba 4-H Council

to go anywhere in the world to meet with some of the leading experts in their respective fields, to get some answers “I went to many of the regions that practise longer grazing times than we do, with a lot more emphasis on looking at plant sugars and other forms of metabolizable energy in the plant. We tend to focus more on fibre in North America. I looked at some of the plants that other countries were using, and the influences those plants have on ruminant digestive efficiency and even their impact on everything from greenhouse gases to their potential to build soil,” he says. “In my report that will soon be released, I

also included a section on energetics (energy in and energy out of a system), based on some published research from my time at the Brandon Research Centre,” he says. “One of the interesting things that has phenomenal potential if we can make it work, is the ability to initiate early development of marbling cells in young, developing animals. A lot of that work at this point has been done with early-weaned calves fed high-energy diets, but I’m wondering if we can get that same effect under grazing, with that calf still on the cow — rather than feeding grain or some other highenergy supplementation. It does require a sustained supply of high levels of energy to trigger the phenotypic and physiological responses,” he adds. Researchers around the world have come to the same conclusion. Investigators in New Zealand will be assessing early-weaned calves (beef and dairy) eating forage instead of concentrates/grain to achieve these results. “They will be evaluating impact on carcass quality and earlier time of slaughter — with the expectation of improved marbling,” he says. “We did a lot of work with swath grazing in Brandon, including some trials looking at understory crops, with some success. I’ve continued to try to do some new things at home, bringing in plants that we hadn’t really considered when we began. Currently I am seeking species like tetraploid Italian ryegrasses (which are capable of accumulating the greatest amount of plant sugars, of all the grasses) along with chicory and forage plantain, as well as a few legumes.” He is trying to create a mixed crop of annuals that will grow all year long. “Normally we look at swath grazing or silage or cereal grain as about 75 days of active

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forages

growing, putting carbon into the soil. I am putting that same crop into the ground, but adding an understory of ryegrasses, chicory, plantains and clovers, and then early harvesting of the cereal and leaving it in the field. Until now we have used small square bales but I’d like to try wrapped round bale haylage. We leave the bales in the field for the cattle to utilize later, and let the understory crop regrow for later grazing,” he explains. The field can be strip grazed, opening the bales up for the cattle instead of leaving swaths. The baled forage holds quality better and doesn’t deteriorate as much as it would in the swath, if there is rainfall. “I have been working with ryegrass and chicory so far, hoping to bring in some plantain. Another grass I am really interested in is festulolium, which is a cross between ryegrasses and fescue. There can be various combinations, but the ones I am focusing on are varieties that are 90 to 95 per cent Italian ryegrass and five to 10 per cent meadow fescue. This gives it much deeper rooting, with the same leaf expression and potential to accumulate sugars like the Italian ryegrass, but hopefully it will be able to withstand the drier conditions of the Canadian prairie a little better than ryegrass,” says Robins. He has been growing some of these species for a while and had a decent stand this past year. “On October 25, which is really late in our part of the world for perennial forage grazing because the plants are dormant and lower in quality by that time, I did analysis of these plants. The Italian ryegrass on my farm on that date was 38 per cent sugar and the chicory was 31 per cent. The TDN was halfway between oats and barley grain.” The net energy for gain on the chicory especially, was approaching the Mcal/kg of grain barley. “I have looked at many forage analyses in my life, spending 22 years as a research assistant with Ag Canada in forage and beef production, and have never been so happy to see such a set of forage analyses. These are very high levels of energy that I think we can use to potentially stimulate early development of marbling cells. It can help us make improvements in carcass quality of forage-fed beef, compared with what we try to do now,” he says. Canada has an advantage over the U.S. and many other beef-producing regions in the world because the days are a little longer during the growing season, with more time to accumulate sugar, and the evenings are a little cooler. “We don’t experience as much respi-

ration in the evening to burn up those sugars. We also have a lot of solar intensity. I live in Rivers, Man. An air base was built here during the Second World War because this area was claimed to have the most cloudless hours of sunlight in Western Canada. When you consider low temperatures and solar intensity, those are two of the biggest drivers for encouraging plants to accumulate high levels of plant sugars, yet this is something we haven’t paid much attention to.” These plants have all been looked at before in Canada, but they were abandoned because they wouldn’t overwinter. “We were always focused on longevity, which has a lot of merit when we want plants that grow every year. But we have to accept the fact that these are not going to survive Canadian winters on the prairie and that we’ll have to seed them every year,” says Robins. “But if we utilize them as understory crops to go along with cereal harvest, with lots of yield, we can achieve greater carrying capacity per acre and the potential gain per acre will be high. If we can initiate early marbling cell development, which might

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take time off the end point for finishing and feeding at the end of that animal’s life, then the economics start to look very good. The cost of annual seeding becomes almost inconsequential,” he explains. “If we have plants that contain 30 per cent sugar in October, we can do a lot with them. My strategy is to look at August, September and October as a three-month grazing window for these plants.” With a high-quality overstory cereal crop, this becomes attractive. Now we just need to grow more of these forages and see what they can actually do at different points during that three-month grazing period. “I am not sure how many good grazing days we might get. Based on what I am seeing right now with my cattle at home, I am looking at being able to carry 70 steers on an acre for three to 3.5 days. If we can push the gain higher on those steers, with that kind of carrying capacity, the numbers start to look very good, economically,” he says. “There are other parts of Canada that can do this. This might be a way to rebuild a beef-feeding enterprise without having to go the feedlot route,” says Robins. c

1-800-806-0715 C a t t l e m e n · M ay 2 0 1 5

17

 researc h o n t h e r eco r d

By Reynold Bergen

Do antimicrobial growth promoters really improve performance?

I

onophores (Rumensin, Bovatec, Posistac) are not medically important because they are not used in human medicine. Other antimicrobials used in livestock are medically important. Concerns around antimicrobial resistance in both human and veterinary medicine have led to increased scrutiny regarding how medically important antimicrobials are used in livestock production. In response, pharmaceutical companies throughout North America are removing production claims (i.e. growth and feed efficiency) from products containing medically important antimicrobials. Some of these products also have health claims, but four Canadian products only have production claims (two Aureo S-700G products, Chlor S-700, and Neo-Terramycin). These products may disappear unless the companies pursue new healthrelated label claims. But do medically important antimicrobials really promote growth? Or do they just keep calves healthy, which grow better than sick calves? Alberta Agriculture and Rural Development’s Dr. Kim Stanford led a research project at AAFC’s Lethbridge Research Centre to help answer this question. This research has been submitted for publication in the Canadian Journal of Animal Science. What they did: 240 freshly weaned steer calves were obtained from the same ranch in each of two years. Steers averaged 553 (Year 1) and 602 pounds (Year 2), and were not treated with antimicrobials before arriving at the research feedlot. Steers were vaccinated and treated for parasites on arrival. No preventive antimicrobials were given, and no ionophores were fed. Calves were individually treated for illness when needed. Steers were divided into five experimental groups and fed in small pens. Natural steers (five pens) were not fed sub-therapeutic antimicrobials. CT+S700 steers (five pens) were fed chlortetracycline and sulfamethazine (350 mg of each antimicrobial per head per day). This corresponds to Aureo S-700G and Chlor S-700 label doses to maintain weight gains and feed efficiency in calves stressed by weaning, shipping and handling. CT11 steers (five pens) were fed 11 mg chlortetracycline per kg of diet dry matter every day. This corresponds to Aureomycin 110 G and 220G label claims to stimulate growth rate and improve feed efficiency in calves up to 300 pounds. CT350 steers (four pens) were fed a higher level of the same product as the CT11 steers. This off-label dose provided the same amount of chlortetracycline as the CT+S700 steers (350 mg per head per day). A fifth group of steers (five pens) were fed 11 mg tylosin per kg of diet dry matter. Tylan is approved to reduce liver abscesses but does not have a label claim for improved growth rate or feed efficiency. Tylan results won’t be discussed here. Calves were backgrounded on 58 per cent barley silage

18

C a t t l e m e n · m ay 2 0 1 5

for 84 (Year 1) or 74 days (Year 2), then stepped up over 21 days to a 91 per cent barley-based concentrate diet and finished for 123 (Year 1) or 92 days (Year 2). What they learned: No differences between the Natural, CT+S700, CT11 and CT350 steers were seen for respiratory disease, foot rot, pink eye or bloat treatment rates. Growth rate: During backgrounding, the CT+S700 and CT350 (but not CT11) steers grew faster than the Natural steers in both years. CT11 steers grew faster than Natural steers in Year 2 but not Year 1. In both years, all four groups grew at the same rate during the finishing period, as well as in the combined backgrounding + finishing period. Feed efficiency: CT+S700 steers were most efficient during the backgrounding period in Year 1. Natural and CT350 steers were intermediate, and CT11 steers were the least efficient. In Year 2, CT+S700 and CT350 steers were more efficient than CT11 or Natural steers during the backgrounding period. No statistically significant differences were found between the four groups during the finishing period or the combined backgrounding and finishing period in either year. What it means: Using low-risk steers from a single source and fed in small pens minimized the risk of respiratory disease and other illnesses. This means that differences between the four groups were most likely due to the antimicrobials’ effects on growth, not animal health. Steers fed the higher levels of sulfamethazine and/or tetracycline grew faster than steers fed the low level or no tetracycline during the backgrounding period, but these benefits did not translate to improved growth rate over the entire feeding period. Differences in feed efficiency were inconsistent. Medically important antimicrobials fed at label doses did not consistently promote growth in low-risk feeder steers during backgrounding, and had no effects when the overall feeding period was considered. In higher-risk calves medically important antimicrobials may provide health benefits rather than directly promote growth and efficiency. Removing production-related label claims for medically important antimicrobials will probably not affect the competitiveness of Canada’s beef industry, but it will help demonstrate the beef industry’s ongoing commitment to responsible antimicrobial use. 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.

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DECiSiOnS arE MaDE in THE FiElD  See technology through live field demonstrations at Ag in Motion Over the next three mOnths, in what is now an empty field, Western Canada’s newest and only outdoor farm expo – Ag in Motion – will evolve into a go-to event for progressive farmers. the three-day event launches this summer, July 21-23. It will take place on a half-section (320 acres) of prime agricultural land about 35 km northwest of saskatoon, on highway 16. site preparations have begun and crop plots will be planted soon. While the outdoor tradeshow concept is new for many, an outdoor venue brings unique and endless possibilities. One unique offering that Ag in Motion will deliver is live field demonstrations. the themes of the field demonstrations will be announced in may, but farmers will have the opportunity to see the latest equipment in action, in the field. Glacier Farmmedia operates Ag in Motion, and also Canada’s Outdoor Farm show in Woodstock, Ontario. now in its 22nd year, field demonstrations have been an integral part of the event since day one. so how does it work? It’s best described using an example. One of several field demonstrations offered in Woodstock last year was a cover crop tillage demo. there were 19 exhibitors participating. each manufacturer had the opportunity to show how their tillage equipment handled cover crops. Farmers were able to see 19 different machines in operation – all in one place. they could also visit the manufacturer’s exhibit

The cover crop tillage demonstration at the 2014 Canada’s Outdoor Farm Show allowed farmers to see equipment from 19 companies in operation.

Manufacturers demonstrated the speed, accuracy and ability to produce well-processed corn silage during a corn silage harvesting demo at Canada’s Outdoor Farm Show in 2014.

to ask questions and discuss the machinery they saw working in the field. “there is no other venue where farmers can gather the kind of valuable, hands-on information a field demonstration offers,”

says show Director rob O’Connor. “All this in such a short period of time, in one place.” videos of field demonstrations in Woodstock can be viewed on the Ag in Motion home page, at www.aginmotion.ca.

SOMETHing nEw iS in THE FiElD. ViSiT ag in MOTiOn THiS SUMMEr - JUlY 21-23 For more information about Ag in Motion please call toll free: (800) 563-5441 or email: info@aginmotion.ca www.facebook.com/AginMotion

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 Holistic R a nc hi ng

By Don Campbell

planned grazing

P

lanned grazing describes the process we use to plan our grazing in holistic management. Planned grazing was developed by Allan Savory. It is based on two key points. The first is that overgrazing is due to time not the number of animals. It is vital that we understand this point if we want to have better pasture management. When we control the time of grazing, our animals are beneficial to the plants and the land. When we don’t control the time of grazing, our animals are detrimental to the plants and the land. Since this is true, to prevent overgrazing we need to control how long we stay in a pasture at one time (graze period) and how long we allow the plants to grow (recover) before being grazed the second time (recovery period). Let me give you a simple example to emphasize this point. We used to keep a stallion. He was kept alone in a small pasture. The pasture was too large for one horse to utilize all the grass. The stallion was basically allowed to continuously graze for the entire growing season. What were the results? In the early spring the stallion would select and graze the most nutritious and most beneficial plants. He would then move on to graze something else. The first grazed plants would start to regrow. They would be young and tender. Long before the plants had a chance to replenish their root supplies they would be grazed a second time (overgrazing). As this is occurring the adjacent plants that had never been grazed are becoming more mature and less and less palatable. This process was repeated several times over the summer. The result was that the most desirable species were severely overgrazed (these areas looked like a golf course) and the other plants were underutilized (the plants were tall and mature). The most severe overgrazing ever seen on our ranch was done by one horse.

Have you seen something similar on your place? Perhaps you have a horse pasture or a small holding pasture where you put animals when it’s convenient. When you think about it, are these pastures overgrazed? Are they in poor condition compared to your bettermanaged pastures? I hope this simple example of overgrazing will help you understand why most pastures that are continuously grazed are overgrazed (the cattle graze the most desirable plants multiple times) and understocked (there are not enough animals to utilize all the plants).

The graze period refers to the number of days the animals are in a pasture at one time. When cattle enter a pasture they graze the most desirable plants first. They then move on and graze other plants. Overgrazing occurs when the plant regrows enough to be grazed a second time before they have enough time to replenish their root supplies. To prevent overgrazing I would suggest a graze period of three to five days. The general rule is the shorter the graze period the better. The recovery period refers to the number of days between grazings. The recovery period is the most important point in preventing overgrazing. It must be long enough for the plants to fully recover from the previous graze. The best indicator of full recovery is that the plants are ready to

flower. Grazing at this stage is beneficial to both the plants and the land. To prevent overgrazing I would suggest a recovery period of 60 to 90 days. My experience has been that you will be more pleased with the results as you move closer to the 90-day recovery. In some areas grazing once in the growing season may be the best scenario. The second key point in planned grazing is that we monitor the regrowth where we started grazing. We then adjust our plan according to the growing conditions we are experiencing. In years of excellent growing conditions we may shorten our recovery. In years of poor growing conditions we may lengthen our recovery. It is essential to achieve full recovery under all growing conditions. We change our recovery period by changing the severity of the graze. In an excellent year we will have a light severity of graze. In a poor year we will have a severe graze. It is important to understand the difference between overgrazing and the severity of the graze. Overgrazing is detrimental. Grazing severely is not detrimental when done over a short period of time and allowing full recovery before another graze occurs. If you want to manage for the severity of the graze you adjust your cattle numbers not your recovery period. A logical question at this point might be: how many pastures are required to do a good job of grazing? The best answer I know is that I do not know. I also don’t think anyone else knows. However, by asking you two simple questions we can determine how many pastures you require. What recovery period do you plan to use? What graze period do you plan to use? Knowing this information we can easily determine how many pastures you require (Table 1). The formula is (recovery period/

TABLE 1

TABLE 2

TABLE 3

Recovery

20

Graze

Extra pasture

Pasture needed

75

5

1

16

75

3

1

26

75

1

1

76

C a t t l e m e n · m ay 2 0 1 5

hen we control W the time of grazing our animals are beneficial to the plants and the land

1

2

3

4

5

6

7

8 cows here

16 start here

15

14

13

12

11

10

9

Year

Graze period

Recovery

Severity

average

5

75

moderate

good

4

60

light

poor

6

90

severe

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holistic ranching

RED CANARY SEPT. 25

BROME 80-DAY REC. 5D

ALSIKE 80-DAY SEPT. 25 6 C

graze period) + 1 equals the number of pastures required. Here is an example of the number of pastures required based on different graze periods. All are correct. Table 2 shows an example of a 75-day recovery with a five-day graze and the 16 pastures required to prevent overgrazing. Monitor the regrowth (pasture 16) and adjust the graze period according to growing conditions to achieve full recovery. Table 3 demonstrates how the recov-

ery period changes as the graze period changes. The severity of the graze also changes. This allows us to achieve full recovery in all growing conditions. All of these scenarios are correct for different growing conditions. The above three pictures demonstrate the quality and quantity of the forage at full recovery. All three pictures are taken on Sept. 25, 2007. This is after several frosts. The recovery period is 80 days.

Good grazing management pays. It pays even better when cattle prices are strong. I invite you to consider making the 2015 grazing season the best ever in your operation. 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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C a t t l e m e n · MAY 2 0 1 5

21

 innovati o n

By Tamara Leigh

Drones give new perspective on herd managemenT

U

nmanned aerial vehicles, commonly referred to as drones, are part of a growing trend toward precision agriculture: using technology to reduce costs and maximize yields. Dr. John Church from Thompson Rivers University (TRU) is leading the way in developing applications for the technology in the cattle sector. “Drone technology has real potential as a tool for cattlemen,” says Church. “It’s a way to extend your vision and bring more information to the producer.” Church and his team are testing drones equipped with infrared thermography cameras that detect infrared energy emitted from objects and convert it to temperature. The result is an image of temperature distribution that allows ranchers to find cattle on the range, even under tree canopies. Being able to detect differences in body temperature in animals can also be used to find sick animals, and evaluate metabolic efficiency to help select more efficient stock. “New Zealand and Australia have been using drones for livestock, and it has been used for other animals for conservation work, but I am sure that we are the first to use drones with infrared thermography,” says Church. Anyone who has managed cattle through the winter can appreciate the value of being able to find cattle without having to track them through the trees themselves, or wander through the pens in the dark to identify a sick animal. Using thermography as a proxy for feed efficiency is new territory, and is expected to be a boon for breeding programs. “If we can measure the temperature of the head, we can get some indication of metabolic efficiency and select more efficient animals,” Church explains. With funding through the Growing Forward 2 Canada-B.C. Agri-Innovation program, delivered by the Investment Agriculture Foundation of B.C., the first phase of this project has validated the utility and value of using infrared thermography and allowed Church and his research team to

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C a t t l e m e n · M ay 2 0 1 5

develop practical information and guidelines for ranchers interested in using the technology in their operations. One of the first questions that had to be answered was how close you could fly a drone without disturbing the cattle. Flights with ranchers in B.C., and working with the Vaccine and Infectious Disease Organization — International Vaccine Centre at the University of Saskatchewan found that cattle are very tolerant to the noise and movement of drones, allowing them to fly within three metres close observation. “It seems to scare the cattle if they see the drone take off, so it’s better if you fly in at a height of 15 metres and gradually drop down,” says Church, sharing some flying tips. “They also don’t like to feel the downdraft on their backs, so come in from the side, not directly over them.” So far, Church and his team have tested 10 drones, evaluating which configurations are better suited to use on the range and in closer quarters like commercial feedlots. He recommends the DJI Inspire 1 (www.dji.com) as a consistently strong performer among the commercially available options. Two important features to consider are weight — getting a drone heavy enough to avoid getting blown around by the wind — and battery life. “A lot of people get fixated on long flying times, but we have found the sweet spot is 20 minutes,” says Church. “Unfortunately cold weather can really sap the lithium polymer batteries and while the drones operate fine, the flight times drop quickly.” Learning to fly the drones and work with the technology that interfaces with them is a skill unto itself. “I’ve had a lot of success with young students, and it’s really good if you can get an ex-gamer,” he says, noting in all seriousness that they have the reflexes and familiarity with the computer systems that has taken him longer to learn. c Tamara Leigh is the senior communication strategist with the Investment Agriculture Foundation of B.C.

 a e r i a l s h ots

Infrared thermography can also be used to spot cattle on range, even under tree canopies.

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 grazing

By Steve Kenyon

Cell Designs are Hard to Find

F

or years, I have taken as many schools and seminars as I could, in a quest to improve my business. One thing that I have seen throughout my education is that pasture cell design is never explained well, if it is even discussed at all. The “why” on rotational grazing is always discussed, but the “how” is usually not very clear. The difficulty when subdividing up a pasture is to make sure that each paddock has access to water and that the animal movement is feasible. Because I had never seen a cell design workshop before, I created one. I have put together five different types of cell design strategies that will work with the grazing concepts to help improve your land. What’s right depends on many factors. Each cell design has different advantages and disadvantages. In order to look at each type we will need to compare them with the equal

measurements. Each picture in the diagram will use the same piece of land with no physical restraints. Each pasture will be 160 acres with 16 paddocks which will make each paddock 10 acres in size. 1. The alley way system is quite common and is relatively inexpensive to set up. In the diagram, I describe two different alley systems. The Two Alley Ways system will need four miles of cross-fencing to build the 16 paddocks. The One Alley Way design shown uses 4.4 miles of cross-fencing. Depending on how intensely you manage the long skinny paddocks of the One Alley Way system will usually become overutilized closest to the water and underutilized at the far end. The more square-shaped paddocks of the Two Alley Ways system will generally be grazed more evenly. One of the downsides to the alley system is the excess manure and urine that ends up in the alleyway.

The nutrients end up being recycled in an undesirable area. Both of these systems have low setup and low labour costs. They also come with the benefit of flexibility of movement. It is easy to move the herd around in the rotation, or to manage the animals individually. If you need to treat for a pink eye or a foot rot, it is easy to bring an animal in through the alley to a handling facility. I have set up an artificial insemination program on pasture with only one unit of labour because of the convenience of the alley system. Another benefit to the One Alley Way system is that the long rectangle makes a great bale-grazing paddock if you ever have the opportunity. 2. I have seen quite a few “Water Truck Method” systems over the years that have been quite successful. This type of cell system has less cross-fencing with only three miles of fence. The utilization is better again with the square paddocks but limits animal

 Methods o f C ross - Fe nci ng ( Tota l Pastu r e = 1 6 0 Ac r es)

24

Two Alley Ways, 4 Miles of Cross-Fence, Even Grazing, Manure in Alley, Low Labour Costs.

One Alley Way, 4.4 Miles of Cross-Fence, Uneven Grazing, Manure in Alley, Low Labour Costs, Great for Bale Grazing.

Pipeline Method, 3 Miles of Cross-Fence, Even Grazing , Good Manure Distribution, Increased Capital Costs.

Cell Centre, 4.8 Miles of Cross-Fence, Uneven Grazing, Fair Manure Distribution, Low Labour Costs.

C a t t l e m e n · M ay 2 0 1 5

Water Truck Method, 3 Miles of Cross-Fence, Even Grazing, Excellent Manure Distribution, Increased Capital & Labour Costs, Increased Herd Effect.

Portable Strip Grazing, 1 -1/2 miles of Cross-Fence, Two Portable Fences, Variable Utilization, Higher Labour Costs, Flexibility of Paddock Size, Low Capital Costs, Variable Manure Distribution. www.canadiancattlemen.ca

grazing

movement. You have to plan your rotation a little better so you do not graze yourself into a corner. Manure distribution is better as you have no constant alley or watering site that can be overused. The bonus with this system is that you can increase the animal impact in an area by positioning your water truck on a specific spot. The downside is the increased capital and labour costs. 3. A Cell Centre is quite common. It is also known as the wagon wheel or pie system. This design has the most cross-fencing at 4.8 miles. In this scenario, the paddocks end up being long and narrow, which again tends to cause uneven utilization. From an aerial photo you would see overutilization at the hub, or centre of the wheel. Manure distribution is variable, depending on the intensity of your grazing plan. The benefit to this system is that it is cheap to set up and to operate. Labour costs are low. Flexibility of movement is pretty good with this system as all of the paddocks are connected at the watering area. Each paddock funnels nicely to the middle so bringing in an animal to treat or to AI is also relatively easy. 4. The Pipeline Method is popular on

owned land. The installation of a more permanent system like this is not so desirable on rented land. The difference in this system is we now take the water to where we want it, as opposed to allowing animals to walk to it. It keeps the fencing cost low with only three miles of cross-fence. The square paddocks allow for more even utilization of the forage and provide good manure distribution. In some cases, where there is no existing water pressure system, it can be more costly to put in. Once in place it requires little labour. If you look closely at the pipeline system, it is actually four small cell centres. 5. The fifth cell design in my workshop is the Portable Strip Grazing method. This one is more difficult to put into a mould as it is quite variable with management. In the diagram I show it a couple of ways. There are three permanent fences, which create four long rectangles across the pasture. This only requires 1-1/2 miles of permanent fencing. On the left half of the picture, it shows a pipeline down the centre that allows for multiple watering points. You then manage the rotations using two or three portable fences giving you flex-

mOBile

yOUR PORtaBle eQUiPment sOURCe!!

ibility on the size of each paddock. The water trough moves along with the cattle. On the right half, there is no pipeline. We graze down the rectangles by removing fences, allowing access to more grass each time. In this scenario, we are allowing the animals to walk through the first paddocks to get to the other ones. We need to be careful to still maintain our desired graze period through each rectangle. If the animals are allowed on a piece of land for too long, they will regraze the first paddocks and cause overgrazing. The far right shows very high stock density or mob grazing. Like I said, this one is a little harder to put into words, but it can give you more flexibility in your management. There is however, more labour involved. As for manure distribution and utilization, this is highly variable depending on management. Animal movement is limited and you need to plan your rotation well in advance. c Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www. greenerpasturesranching.com, 780-307-6500, email skenyon@greenerpasturesranching.com or find them on Facebook.

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C a t t l e m e n · M ay 2 0 1 5

25

ď ľ Nutritio n

By John McKinnon

Focus on your yearlings this breeding season

A

s this edition comes to print, calving is well underway across the country and many of you are turning your thoughts to activities associated with breeding, pasture turnout and spring seeding. Before your schedule gets too hectic, it is a good time to take stock of your nutrition program particularly as it relates to the breeding herd. In past issues, I have focused on several occasions on preand postpartum nutrition of the mature beef cow stressing the importance of meeting her nutrient requirements for late gestation as well as lactation, particularly as it relates to getting her rebred early in the subsequent breeding season. While not downplaying the importance of this aspect of your nutrition program there are other animals in the herd that likely require even more attention than your mature cows. In this column I want to address some of the concerns we have with breeding replacement and first-calf heifers as well as with management of the yearling bull. Developing replacement heifers is currently a hot topic in the research world. Traditionally the recommendation has been to grow replacement heifers to 60 to 65 per cent of mature body weight in order to ensure a majority has reached puberty by breeding and high pregnancy rates. Target gains typically are in the range of 0.7 to 0.9 kg per day which usually requires some form of supplemental feeding. Current research is challenging this dogma and is suggesting that replacements can be grown 55 per cent of mature body weight at breeding without any negative consequences on reproductive performance or lifetime productivity. Typically these programs are carried out under extensive, lowinput systems. Heifers are grown out over the winter at low rates of gain and are expected to compensate with increased weight gains prior to, during and after the breeding season as they move onto spring grass and a higher plane of nutrition. This enhanced weight gain while on pasture is critical if these heifers are to catch up and reach 80 to 85 per cent of their mature body weight by calving. Whichever route you choose to develop your heifers, your concern at this time of the year is relatively simple. Are they on target, in appropriate condition and gaining appropriately as the breeding season approaches? Most of you reading this column recognize that getting first-calf heifers rebred is a challenge. These animals have experienced all the physiological and nutritional stress of pregnancy, calving and lactation experienced by the older cows but are faced with the additional complication that they are still growing.

26

C a t t l e m e n ¡ M ay 2 0 1 5

These animals need to consume sufficient nutrients to meet all these needs if they are to be rebred early in the breeding season. To give an example of the magnitude of these nutrient requirements consider a first-calf heifer weighing 1,100 pounds in the first month of lactation gaining one-half pound per day. This animal should consume about 24 pounds of dry matter (2.2 per cent of body weight) and according to Alberta Agriculture’s Cowbytes program, she requires 16 pounds of total digestible nutrients (TDN) and 2.5 pounds of crude protein per day or a diet concentration of 65 per cent TDN and 10.5 per cent crude protein. At this time of the year, the only way to ensure this level of nutrient intake is to feed a properly balanced ration or supplement these heifers on pasture. Failure to do so often results in heifers that catch late in the breeding season or in a high percentage of open heifers. The final group that I want to focus on is the package of yearling bulls you recently purchased. As with your heifers these young growing animals require special attention if they are to be used successfully in the upcoming breeding season. Yearling bulls purchased from test stations or from purebred breeders likely need to be adjusted from relatively high-energy growing programs to forage-based rations. This diet change should be gradual in order not to throw them off feed. Yearling bulls should reach puberty two to four months prior to the date you expect to breed them and should be conditioned to your operation for a minimum of 60 days. Both steps help ensure that these young bulls will produce high-quality semen when turned out to breeding pasture. During the conditioning period, keep in mind that yearlings are still growing. Target breeding weights should be a minimum of 55 per cent of mature weight. To meet this goal, your feeding program during conditioning will likely need to target two to 2.5 pounds a day gain. For a 1,300-pound bull, two pounds a day gain will require supplementing a good-quality alfalfa grass hay fed free choice with approximately five pounds of barley or its equivalent. A protein supplement may or may not be required, depending on the quality of the forage. What do all these animals have in common? First, they are all young, actively growing animals that are the future foundation of your herd! Second, they are the most expensive animals you have ever brought into your herd. This is not the time to lose sight of the importance of their feeding program to their development as breeding animals. c

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

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BUILDING TRUST IN CANADIAN BEEF

The most powerful people in cattle transportation Decisions made on farm anchor cattle welfare in transit

It turns out the best decision-making tool in cattle transportation may be a mirror. It could be placed anywhere that choices are made about loading cattle for transport from the farm. A sign above it could help its effectiveness: “The most powerful person in cattle transportation.” “We all understand that a number of people can handle animals before they reach their final destination,” says Nathalie Côté, Verified Beef (VBP) co-ordinator for the province of Quebec. “But the decisions that producers make on farm about how and when animals leave the farm, anchor the industry transportation effort. “We are in a new world where expectations are high that animals will be cared for properly. Producers are responsible for thinking clearly and carefully about which animals are loaded.” Transport or not

There are a number of reasons that an animal may be transported from the farm and each one requires a decision, says Côté. Some may be moving to slaughter or to auction markets. Cattle may also move to another farm or to cattle shows. Each time an animal leaves the farm requires a decision to transport, she says. Where is it going? What are the regulations? What options do you have? Decisions to transport or not are guided by a whole set of

regulations, but more than anything they are guided by common sense. There aren’t often officials present when animals are loaded, says Côté, so in many ways, at that point, the producer is in charge. If they make poor or inappropriate decisions they may face challenges down the road if animals fail during the trip. Small producer challenges

Producers in provinces with many smaller operations can face somewhat more challenging transport. Quebec is an example. Many small beef operations and few slaughter facilities mean animals may have to travel farther. Smaller numbers of animals mean more mixing which creates additional challenges over larger, more homogeneous groups which may have spent time together. And Quebec has a high dairy population and often those cull cows are more fragile. The decision tree

In regulatory terms in Quebec, as in other provinces, animals are categorized as “fit for transport, unfit or compromised,” says Côté. The on-farm decision starts with the animal. Is it healthy enough to be sold? Next is transport. Is it fit to bear the trip? Finally determine the most suitable action: • The animal can handle transport; or • Treat and wait for recovery before transport; or

How each animal will fare all along the transport chain is a key consideration, says Quebec’s Nathalie Côté.

• Slaughter on the farm; or • Euthanize because the animal will not recover. Regulations may allow compromised animals to be transported to a veterinarian. However, that is relatively short distances and requires special handling conditions that protect the animal. New expectations

Producers tend to think in terms of animal salvage value, but that is only part of the decision today, says Côté. “Producers must understand that it is a welfare thing, not just a producer thing. Their responsibility doesn’t end when an animal is loaded on the truck. Our industry depends on their making good decisions.” Transportation and animal care are a key part of the VBP program. More information including provincial contacts is available at www.verifiedbeef.org.

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 CCA repo rts

By Dave Solverson

A trade update

C

alving season is well underway and I am feeling very optimistic about the future. Prices, which seem to reach new market highs for all classes of cattle each week, are part of the reason. A global shortage of beef, largely due to prolonged and widespread drought, has pushed the U.S. cattle herd to a 50-year low and last year saw Australia report a record slaughter as producers liquidated their herds. The beef supply may be constricted but globally the demand for beef has not ceased. In North America there is excellent demand for muscle cuts and unprecedented demand for ground beef. New gourmet hamburger chains are popping up throughout Canada and the U.S. and every top restaurant and five-star hotel seem to now offer a $25 hamburger on the menu. This has helped push cow prices close to AAA prices and helps with the short-term outlook. There are other opportunities that await producers that will take a little longer to be fully realized. For instance, the combination of the 38.5 per cent tariff in Japan and safeguard trigger (tariff increases to 50 per cent if imports increase beyond a set formula) has impacted importers’ ability to significantly increase their purchases of Canadian beef. I know that increasing the supply of Canadian beef in Japan is of big interest to importers. On a recent trip to Asia, Japanese importers indicated they would like a second supply of grain-fed beef to augment the supply out of the U.S. The CCA’s objective is that Canada negotiate the elimination of both the tariff and the safeguard trigger in a bilateral agreement between Canada and Japan or the Trans-Pacific Partnership (TPP). There are strengthening signs that the U.S. and Japan are coming closer to agreeing to terms in a TPP deal. It’s essential that Canada do whatever is necessary to be part of that deal and secure the same terms of access. China, South Korea and the European Union (EU) are also important markets. Canadian beef exports to China have grown rapidly since 2012. Chinese demand for beef has outpaced what they’re able to produce domestically and forecasts predict China could double its annual global imports of beef before the end of this decade. The Canada-Korea Free Trade Agreement came into effect on January 1. Korea is a big importer of beef and its preference for highly marbled grain-fed beef holds promise for Canada. Of course, we are waiting for Korea and a few others to resume imports following their temporary restrictions related to February’s BSE case. We are fortunate that the continuing strong global demand for beef has mitigated any negative market impact. Shipments to China are on

28

C a t t l e m e n · m ay 2 0 1 5

their way again and I am optimistic that Korea and the others will be back again soon. The Canada-EU Comprehensive Economic and Trade Agreement (CETA) is another potential game changer. Canada’s beef producers already have some small quota access to the EU but it’s underutilized because of onerous technical meat-processing conditions. Addressing these processing conditions is the key to whether Canadian packers will be interested in buying cattle raised according to EU protocols. The CCA has documents on its website to advise producers and feedlot operators how to ensure their cattle qualify to produce beef eligible for the EU and I encourage you to familiarize yourselves with the requirements. These opportunities are the result of the Government of Canada’s aggressive trade agenda. Exports are the lifeblood of Canada’s beef industry; to maximize the value of every animal produced, Canada must have access to the world so we can sell each part of the animal to the market willing to pay the most for it. Add the Canadian Beef Advantage to the trade achievements and the result is an excellent long-term outlook for Canada’s beef industry. This rosy outlook is not without significant threats including infrastructure and labour challenges. A strategy is needed to get more workers into agriculture and meat processing to ensure Canada can take full advantage of the trade agreements and market access government and industry have worked so hard to achieve. I am also waiting with interest for May 18, when the World Trade Organization (WTO) Appellate Body is expected to release its decision on the U.S.’s mandatory country-of-origin labelling (COOL). The CCA fully expects that the WTO will again rule in Canada’s favour and deliver a final decision that is consistent with its three previous rulings. This appeal is the U.S.’s final procedural option before Canada can request WTO authorization to retaliate. The Government of Canada has made it clear that it will impose duties on a targeted list of goods if the U.S. does not comply with its international trade obligations. Following the final ruling, there will be a few months while the retaliation amount is arbitrated before the governments of Canada and Mexico can bring duties that would come into effect. The CCA will continue its efforts in Washington, D.C., to advocate for a resolution that genuinely resolves the problem of COOL by eliminating the need for U.S. livestock buyers to segregate imported animals from U.S.born animals. I for one will be very pleased when COOL is remedied appropriately once and for all. c

Dave Solverson is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

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

BeefWatch

 While U.S. herd expansion is underway, the Canadian beef cattle herd remains in the consolidation phase. Cow-calf and feedlot profitability improved significantly in 2014 with record cattle prices, lower feed costs and strong beef demand, but risk factors such as weather conditions, input costs and competition from pork and poultry need to be closely watched in 2015.

CATTLE INVENTORIES

Canadian Inventories continue to decline Canadian cattle inventories on January 1, 2015 were down 2.5% at 11.9 million head, the smallest since 1993. Producers continued to send cows to the market aggressively in 2014, while heifer retention was subdued. Beef cow inventories were down 2% at 3.8 million head, the smallest since 1992. The largest declines were in the major producing provinces of Alberta (-3%) and Saskatchewan (-2%) followed by B.C. (1.4%), Manitoba (-1.4%), the Atlantic provinces (0.9%) and Quebec (-0.3%). The only increase was seen in Ontario (+0.7%). The beef herd has been in the consolidation phase since 2011 and is anticipated to move into expansion late in 2015 or 2016. Beef breeding heifer numbers were also down 1.5% at 531,100 head. Lower breeding heifer numbers is not surprising as heifer slaughter was up 10% in 2014 and heifers as a percentage of total feeder exports jumped from 58% to 67%. Many producers did not have additional dollars in their pockets to invest in heifers last summer as they had sold before prices took off. The real question is: what will producers do this summer? Will replacement heifer numbers increase in the July 1 report? And by how much? Inventories of steers, slaughter heifer and calves were down 5.4%, 4.9% and 2.5% respectively. Subsequently the supply of feeders outside of feedlots Canadian Cattle Inventories January 1 (1,000 head) 2014

2015

% Change

214.0

212.8

-0.6%

3,903.3

3,824.4

-2.0%

Bulls Beef cows Dairy cows

959.3

956.7

-0.3%

Dairy heifers

444.2

444.6

0.1%

Beef heifers (brdng)

539.1

531.1

-1.5%

Beef heifers (sltr)

963.9

916.2

-4.9%

Steers

1,246.8

1,179.2

-5.4%

Calves

3,949.4

3,850.0

-2.5%

Total

12,220.0

11,915.0

-2.5%

Source: Statistics Canada

www.canadiancattlemen.ca

is down 3.7% or 157,000 head. If this impact was entirely felt in the 2015 fed cattle marketings this would imply a reduction of around 6% and could have a significant impact on 2015 beef production. U.S. Herd Expansion in Progress Total cattle and calf inventories on January 1, 2015 were up 1.4% to 89.8 million head with many categories up 1-2%. This was the first increase since 2007. Despite being up, total cattle inventories are still 7% below the 2007 peak and remain near their 60-year lows. Beef cow inventories recorded the first increase since 2006 with numbers up 2% to 39 million head, but remain 9.2% below the 2006 peak. The major cow-calf states that were hardest hit by drought have shown the biggest rebound in beef cow numbers. This includes Texas (+7%), Oklahoma (+6%), Colorado (+5%), and Kansas (+4%). In 2014, beef cow slaughter as a percentage of total beef cow inventory declined for the third consecutive year to 9%, pushing the industry into expansion. The 2014 calf crop was estimated at 33.9 million head, up 1% from 2013. This is the first increase in the calf crop since 1995 but is questionable as breeding stock (beef cows and replacements) on January 1, 2014 were down 0.1%. A larger calf crop would require a jump in reproductive efficiency coming out of the hot, drought years in the South — which is possible. More probable is the larger calf crop anticipated in 2015 with a larger breeding herd which will increase beef production at some point in late 2016 and early 2017. Steers weighing 500 lbs. and over were up 0.7% at 15.8 million while heifers for slaughter were down slightly by 0.2% at 8.8 million head. Calves less than 500 lbs. were up 0.9% at 13.7 million head. Cattle and calves on feed for slaughter in all feedlots were up 1% at 13.1 million head while feeder and calf supply outside of feedlots Continued on page 30

 Canadian beef heifers (breeding) January 1 900 800 Million head

Beef Watch is prepared by the staff of Canfax

700 600 500 400

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

Source: Statistics Canada

C a t t l e m e n · M AY 2 0 1 5

29

BeefWatch

1.8% 2.1%

Beef cows

29,693.1

29,085.4

Dairy cows

9,306.9

9,207.6

1.1%

Heifers >500 lbs.

19,240.2

18,969.4

1.4%

Beef rep. heifers

5,777.4

5,551.3

4.1%

Dairy rep. heifers

4,615.4

4,548.7

1.5%

Other heifers

8,847.4

8,869.4

-0.2%

Steers >500 lbs.

15,778.5

15,667.9

0.7%

Bulls >500 lbs.

2,104.4

2,037.8

3.3%

Calves <500 lbs.

13,676.9

13,557.9

0.9%

Calf crop

33,900.0

33,730.0

0.5%

Cattle on feed (all sizes)

13,093.0

13,018.3

0.6%

Feeder/calf supply

25,209.8

25,076.9

0.5%

Source: USDA

30

C a t t l e m e n · M AY 2 0 1 5

 canadian beef cow culling rate 20%

20-yr. average = 11%

15%

10%

5%

0%

13

1.4%

38,293.0

10

88,526.0

39,000.0

07

89,800.0

Record Prices and Improved Profitability In 2014, cattle prices recorded the largest annual increases since the 1980s with Alberta fed steer prices up 29%, yearling prices up 49%, calf prices up

04

Total cattle All cows

PRICES AND DEMAND

01

Yr./Yr.

98

2014

95

2015

92

U.S. Cattle Inventories January 1 (1,000 head) (thousand head)

Heifer-to-Steer Disposal Ratio Up In 2014, the heifer-to-steer disposal ratio posted the first increase since 2006, up from 0.60 to 0.62. The higher ratio indicates proportionately more heifers in the slaughter mix. The dramatic increase in cattle prices coupled with strong demand from the U.S. pushed heifer marketings up 10% in 2014. Heifer slaughter in 2015 remains 5% above last year, but fed heifer exports have declined 32%. An encouraging sign has been historically low heifer placements into finishing lots in January and February. At 20-26% of total placements this is well below what has been seen over the last decade of 28-45% and the lowest since January 2004 (25%). This is the first indication that 2015 might be the start of the next expansion phase.

89

COW CULLING RATE REMAINED HIGH In 2014, record-high cattle prices were sending signals for herd expansion, but many producers took advantage of the higher prices to rebuild equity or invest in infrastructure improvements. Canadian cow marketings in 2014 were down 6% with domestic slaughter down 9% and exports down 1%. This decline is modest compared to the U.S. where beef cow slaughter was down a dramatic 17%. The Canadian beef cow culling rate dropped marginally in 2014 to a projected 13.8% compared to 14.3% in 2013 and the long-term average of 11%, so still at liquidation levels. Moving into 2015, cow prices continued to be well supported by tight supplies and strong lean-trim demand. Alberta cow prices increased from $133/ cwt in January to $144/cwt in March to be 45% or $45/cwt higher than a year ago. Cow marketings are showing signs of slowing down with cow slaughter down 12% and exports down 29% year to date. Weather conditions moving into spring and summer will be a critical factor to watch on both sides of the border, as drought or flood will impact pasture carrying capacity and feed prices, and in turn influence the trend in cow slaughter and cattle prices. Long-range weather forecast projects that El Niño will play a major role in Canadian weather in the early part of 2015, which could lead to a

86

CYCLE INDICATORS

Female-To-Male Disposal Ratio Slightly Lower The female-to-male disposal ratio which measures the number of females (heifers and cows) disposed for every male (steers and bulls) is an important cycle indicator. In 2014, the ratio declined from 1.05 to 1.01, indicating more female cattle are being held in the herd compared to 2013. However, the ratio remains well above the average seen during previous expansion years of 0.94, indicating that the Canadian herd remains firmly in consolidation phase. The lower ratio in 2014 comes entirely from reduced cow marketings as breeding heifer inventories were down 1.5% on January 1, 2015. In early 2015, the female-to-male disposal ratio remains steady with last year at 1.04.

83

was up 0.5% or 133,000 head at 25.2 million head. The increased cattle supply outside of feedlots could mean that there will be slightly more feeder cattle available to place on feed in 2015 supporting fed marketings. Breeding heifers retained from the 2015 calf crop will also be an important factor for feeder supplies later this year.

drier and warmer summer in the Prairies. In the U.S., Midwest weather is expected to be favourable for a good crop with summer heat being far to the West; the main concern for summer drought will be in the inland Northwest.

80

Continued from page 29

Source: Canfax Research

www.canadiancattlemen.ca

BeefWatch 55% and cow prices up 46%. For the beef market, Canadian cut-out prices were exceptionally strong in 2014 with AAA up 31% at $255/cwt, and AA up 32% at $250/cwt. Nominal retail beef prices in 2014 averaged $17/kg up 16% from 2013 while pork was up 20% at $12/kg and chicken up 2% at $7.23/kg. With feeder and cow prices posting the largest growths across the supply chain, cow-calf producers are enjoying a substantial improvement in profitability. While profit levels between different cow-calf producers can be highly variable, the average return per cow in Alberta is estimated at $672/head, up 275% from 2013 and more than 10 times higher than the long-term average. The rising markets in 2014 combined with the cheaper cost of gains and lower dollar created significant profit opportunities for feedlots. It is important to note that as the cash market exploded, feedlots may have contracted a significant number of their cattle, at lower profit levels. Strong bull years like 2014 are frequently followed by a stabilization year that has more typical seasonality. The eastern cow market appears to have already put in a spring high in early March, while the West looks to be testing $145/cwt. Heavy feeder prices have been flat in the first quarter and the summer price rally will be influenced by crop conditions this summer. Fed cattle prices are sensitive to changes in the dollar which remains at the lowest level since 2009. Replacement Ratios Replacement ratios show how much higher feeder cattle prices are per pound of fed cattle. The lower the ratio the fewer dollars a feedlot needs to replace an animal. Conversely, a high ratio implies the feedlot must pay more per pound to replace an animal. Consequently, a higher ratio has negative implications on feedlot profitability, if feed costs are constant. With the larger increase in feeder prices, replacement ratios in both Western and Eastern Canada moved steadily higher throughout 2014. In the first quarter of 2015, the ratios have eased lower but remain well above last year’s level. In the West, replacement ratio

for heifer calves at 1.59 posted the largest year-overyear increase (+27%) among all categories followed by steer calves (+17%), yearling heifers (+15%), yearling steers (+8%) and shortkeep steers (+7%). Replacement ratios in the East are generally lower than the West, but the year-over-year increases for some categories were more significant. Specifically, the ratios for heifer calves (+24%), steer calves (+22%), yearling heifers (+24%), yearling steers (+8%), and shortkeep steers (+11%). In addition to high feeder costs, rising feed prices in Western Canada are also placing more risks on feedlot profitability as break-evens are pushed to record highs. In March, Lethbridge barley prices were up 14% from last year, while Omaha corn prices were down 18%. The feeding disadvantage in Canada narrowed in February but a lower dollar continues to encourage feeder exports and bring strong competition for feeder cattle for local feedlots. Demand Remains Strong While retail beef prices moved significantly higher in 2014, per capita consumption is projected to be down 5%. The Retail Beef Demand Index is an indicator of consumer willingness to pay by evaluating per capita consumption and deflated retail prices. Since 2011, the index has rebounded from the low made following the global financial crisis and is projected to be up 6% in 2014 to 109.5 (Index 2000=100). This is the third-strongest demand since 1990 with only 1990 and 2003 being stronger. The uptrend of the demand index in the past five years shows that beef demand has been resilient to high prices, but it remains uncertain how demand will hold up in 2015 with larger pork and poultry supplies. Global beef demand has been very strong in recent years with a growing population, increased incomes, and protein consumption in developing countries and the economic recovery in the U.S. The International Demand index for Canadian beef has been increasing since 2010 and posted the biggest annual increase of 27% in 2014. The strength in global beef demand is projected Continued on page 32

 Alberta 550-lb. steer prices

 Projected break-even versus market price Break-even

$260 $200 $190

$220 $200 $180 $160

Cash

Hedgeable

Yearling steer

$180 Cdn $ per cwt

$140 $120 $100

$170 $160 $150 $140 $130 $120

$80

$110

$60

Source: Canfax

www.canadiancattlemen.ca

10

12

14

Jun-15

08

Mar-15

06

Dec-14

04

Sep-14

02

Jun-14

00

Mar-14

98

Dec-13

96

Sep-13

94

Jun-13

92

Mar-13

90

Dec-12

88

Sep-12

$100 Jun-12

Cnd. $ per cwt

$240

Source: Canfax Trends West

C a t t l e m e n · M AY 2 0 1 5

31

BeefWatch Continued from page 31

Replacement Price Ratio

(Replacement cattle price divided by slaughter price)

to continue in the next decade with the fastest growth expected in Asia and Middle East and North Africa.

YEAR

Trade Balance Back to Positive Value Strong global demand, larger domestic beef production, a weaker Canadian dollar and improved market access to some Asian markets have been supportive to beef exports and pushed prices to record highs. Beef exports in 2014 were up 14% in volume to 317,728 tonnes and up 46% in value to $1.94 billion. While volumes remained 5% smaller than 2011, export value was the highest since 2002. Per-unit export price averaged a record high of $6.10/kg, up 28% from 2013 and up 43% from 2002. U.S. remains Canada’s top market accounting for 70% of total beef exports followed by Hong Kong (8%), Mexico (7%), Japan (6%), Mainland China (2%) and South Korea (1%). In many of Canada’s major markets, U.S. beef is a key competitor for Canadian products. One of the biggest advantages of Canadian exports moving into 2015 is a lower exchange rate compared to the U.S., which will improve price competitiveness. Beef imports in 2014 were down 14% in volume to 183,665 tonnes and down 1.8% in value at $1.37 billion. Per-unit price averaged $6.60/kg, up 14% from 2013. The U.S. remains the largest supplier with 71% of market share despite a 21% decline in volume. Australia moved up to the second place with 15% of market share as volumes jumped 56% higher. New Zealand dropped from being the second-largest supplier in 2012 to being tied in the third place with Uruguay with 6% of market share. In general, grinding beef as a percentage of total import increased from 64.6% in 2013 to 66.6%. Non-NAFTA imports increased 9.4% in 2014 to 52,883 tonnes. This is still well below the annual quota of 76,409 tonnes. In 2015, beef production by Canada’s major suppliers is projected to be down with herd expansion in the U.S. and improved moisture conditions in Australia. This combined with elevated global prices and a weakening dollar will continue to limit imports and constrain beef supply in 2015.

Other China Mexico

600

MENA S. Korea U.S.

Russia Japan Total value

$2.5 $2.0

400

$1.5

300 $1.0

200

$0.5

100

2015 02

03

04

05

06

07

08

09

Source: Statistics Canada, CFIA

32

2014

SE Asia HK & Macau

500

0

2013

Billion dollars

Thousand tonnes (product weight)

 canadian beef export volume

2012

C a t t l e m e n · M AY 2 0 1 5

10

11

12

13

14

$0.0

QUARTER

Heifer calves (4-5)

Steer calves (5-6)

Yearling heifer (6-7)

Yearling steers (7-8)

Shortkeep steers (8-9)

Q1 EAST

1.28

1.37

1.19

1.21

1.15

WEST

1.48

1.56

1.27

1.31

1.22

Q2 EAST

1.35

1.43

1.25

1.27

1.22

WEST

1.47

1.56

1.29

1.32

1.22

Q3 EAST

1.34

1 .40

1.24

1.24

1.24

WEST

1.41

1.46

1.27

1.30

1.23

Q4 EAST

1.27

1.35

1.15

1.19

1.1 7

WEST

1.32

1.37

1.14

1.19

1.14

Q1 EAST

1.12

1.24

1.04

1.13

1.10

WEST

1.27

1.35

1.13

1.16

1.10

Q2 EAST

1.10

1.18

1.04

1.10

1.06

WEST

1.16

1.28

1.07

1.12

1.05

Q3 EAST

1.19

1.29

1.12

1.20

1.17

WEST

1.22

1.32

1.15

1.23

1.1 8

Q4 EAST

1.24

1.38

1.13

1.25

1.26

WEST

1.24

1.32

1.12

1.20

1.16

Q1 EAST

1.14

1.29

1.09

1.16

1.1 3

WEST

1.32

1.45

1.20

1.26

1.18

Q2 EAST

1.35

1.43

1.27

1.28

1.20

WEST

1.42

1.53

1.32

1.34

1.23

Q3 EAST

1.52

1.61

1.35

1.37

1.33

WEST

1.58

1.58

1.37

1.39

1.32

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

* Record highs, East and West

www.canadiancattlemen.ca

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 marketi ng

By Charlie Gracey

How rapidly can we increase marketable beef supplies?

34

C a t t l e m e n · M ay 2 0 1 5

Increased Beef Production after six years of expansion Per cent increase

4% annual increase

8% annual Increase

12% annual increase

No. of cows in herd (exposed)

26.5%

58.7%

97.4%

No. of steers weaned

21.7%

46.9%

76.2%

No. of salable heifers weaned

16.9%

37.5%

56.2%

Total steers & salable heifers

19.7%

43.3%

69.3%

Cows culled

21.7%

46.9%

76.2%

 P e r c e n t i nc r eas e 140 120

In weaned steers and salable heifers under three expansion rates

100

Per cent

I

f the Canadian industry is to take full advantage of recently opened and expanded markets outside of NAFTA this will require a significantly expanded breeding herd. The industry is already missing out on these opportunities and will continue to do so if cow numbers do not increase. This caused me to take a look at how soon increased supplies might be available. The cattle industry is naturally fettered by the biological realities of a long generation interval and single calves. In a practical sense the herd owner makes a decision to expand his herd and follows that up with a decision to reduce the rate of cow culling and to increase the rate of heifer retention. Some will argue that one can increase the herd much more quickly by buying in cows and heifers and this is true in individual cases. But doing so cannot increase the national herd a single head. It just changes ownership. Several years ago I devised a spread sheet to illustrate the dynamics of the cattle cycle and it has appeared in succeeding issues of the Cattle Cycle Booklet, now occasionally revised and updated by Canfax. I use it now to explore the rate at which beef supply can be increased. We will begin this discussion by setting the productive and reproductive parameters at what I consider to be optimal levels. • The cow culling rate will be maintained at a practical minimum of nine per cent. • The conception rate will be maintained at 95 per cent • The weaning rate is defined as the per cent of cows that conceived and weaned a live calf (thus including survivability at birth) and will be maintained at 96 per cent. • Natural death loss of cows will be set at one per cent per annum. These are admittedly pretty high targets but the industry has been doing about that well for some years now. With these parameters in place the decision to expand production will commence with the retention of heifers in the fall of year two and expansion at a predetermined rate will proceed for six years. To commence on a practical basis I looked at historic periods of sustained expansion to determine the appropriate scenarios I would

80 60 40 20 0 -20

Yr 1

Yr 2 4%

Yr 3 8%

test. In the years 1951 to 1954 beef cow numbers increased an astonishing 73 per cent or a compound annual rate of 14.7 per cent. But this was at a time when dairy cow numbers were static and one suspects that many were simply redefining their herds as beef cows. From 1969 to 1975 a compound growth rate of eight per cent was maintained without apparent difficulty and from 1987 to 1996 a much more sedate compound growth rate of three per cent was maintained. With this as precedent I used my template to illustrate the effects on supply of a 4.0, 8.0 and 12 per cent compound growth rate over six years. The percentage figures in the table therefore show the percentage increase in supply reached in the sixth year of expansion. The table shows the capacity to increase production at three different possible expansion rates and shows the growth of the cow

Yr 4

Yr 5

Yr 6

Yr 6*

12%

herd, the increase in weaned steers, the increase in weaned and salable heifers, the combined increase in steers and salable heifers and finally, with a nod to the non-fed beef supply, the increase in culled cows. Since a 4.0 per cent rate of expansion is the most that can be realistically expected it is worth noting that after six years of expansion the number of weaned steers and salable heifers would have increased just 20 per cent. The graph reveals the percentage increase of steers and salable heifers combined in each of the years of expansion. The graph also shows two other important features of the cattle cycle. It shows that at the outset the growth is low and in fact is zero or negative in the first year of expansion due entirely to the withholding of heifers. Then, whichever growth scenario is considered, we see a compounding effect by maintaining a constant growth rate. The second and dramatic effect

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is the second entry for year six. In the first entry of year six I maintained the growth rate in the previous years into year seven. In the second entry for year six I ended the growth phase in year six to illustrate the sharp surge in supply caused when “the expansion music stops” and more heifers are suddenly made available for feeding. The increases in supply depicted in the chart refer to the supply of weaned calves. But those weaned calves won’t reach market for another six to 10 months so the increase in salable beef supply will be delayed another year. (From data we have thanks to age verification the average age at slaughter is 18 months and ranges mainly from about 15 to 21 months of age.) So what I call year two in the chart above

becomes year three when we are discussing marketable beef supplies. This means that in year three of an expansion the increase in supply is a mere two per cent if the expansion rate is four per cent. It is a little over five per cent if the expansion rate is eight per cent per year and, surprisingly, supply increase has barely started, 0.3 per cent, if the herd expansion rate is 12 per cent. This is because it takes a huge draw on heifers to achieve a 12 per cent annual growth rate. Like a poorly tuned vehicle the engine stalls or chokes before roaring to life and we see in year four that the supply has surged 20 per cent. Fortunately for several producers they started expanding their herds two or three years ago, they have already gained benefit

from early expansion. But on an industrywide basis there were an equal or greater number who have not yet begun to increase their herd size or have exited production because the national herd has not yet begun to grow. So as things stand now the industry is still at least three years away from being in a position to put any significantly increased supply into global markets. Much has been said and written about emerging global opportunities for beef exports. Not enough has been said about the crucial role played by the ranchers and cow-calf producers who make the most basic decisions in this industry. c Charlie Gracey is an industry consultant.

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35

 straigh t f ro m t h e h i p

By Brenda Schoepp

A return to healthy soil

B

ack in 1400 BC Moses sent his scouts ahead to Canaan to see what the soil was like and bring back fruit. By 400 BC Hippocrates was relating soil health as part of the overall evaluation of patient health. Flash forward to 1940 and R.A. Hayne proclaimed that “only healthy soil can produce healthy people.” And so is the history and appreciation between soil health and human health. As 99 per cent of all our food is directly or indirectly supported by soil, it only makes sense that the health of the soil be appreciated. Soil also serves as a filter, the carrier of pathogens, a place for chemical interaction and a responder to the climate around it and the waste it is trying to absorb. Throughout history it has been said that the health of the human is an image of the health of the soil. I think of my travels and the crops and animals I have seen (and eaten). Standing in Bryce’s field of canola in Australia, we talked about the importance of rotation for his cash crop of alfalfa. Rotation for soil health has been long practised and is a growing trend for human and animal feed, especially for export. My colleague Ryns from Holland has been travelling around the world looking for an affordable non-GMO protein other than soy for cattle feed in the Netherlands. In dairy, especially where the movement is toward all-natural feeding as a preventive to disease (called the salad bar), there is zero tolerance for GMO protein and close attention to soil health. The announcement in Canada from Hershey to go GMO ingredient free in candy is a major shift in corporate philosophy and product demand. As I stood in the rice fields just outside Ludhiana, my friend Rajvinder explained that he shifted to organic because the soil was completely “burned out.” That was interesting because that patch had likely been farmed for thousands of years but in recent decades had collapsed. Rajvinder was searching for ways to return the soil to productivity and his choice was long-term investment of organic crop which garnered a 25 per cent premium. This is also one of Canada’s biggest growth areas in agriculture. Consumers may relate organic food to clean soil and plants, food safety and quality. In the massive fields of forage in the desert of Qatar, I am amazed at the output of 48 dry tonnes to the hectare per cut with up to 11 harvests per year. Adding water to sand and lacing it with nutrients is all that is required for seed to grow. Again, with a focus on dairy, the purity of the forage and its nutrient value is of great importance to the quality of the milk. The variation we harvest in Canadian forages, be that in grazing or harvested feed, would not be acceptable in most countries. Perennials are part of the solution and many annual

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C a t t l e m e n · M ay 2 0 1 5

plants of the day derive from a perennial past, such as wheat. We have evolved but the solutions for soil degradation do not lie solely with the farmer as all food faces a core issue and that is the demand for sameness from the customer. Wheat is mixed off so that large-scale bakeries can put out identical loaves of bread. Chickens, beef and pork are fed to growth and performance targets so the customer has the same size portion at every meal and in every box. Food grain seeds are sifted for sameness, apples for uniformity. It is the monotony of food. Farmers of all types are typically discounted for any product out of spec even if it tastes better or has higher nutrient quality. Breaking the redundancy in food may lie not in the presentation of perceived perfection but in going back to the root of all we eat — the soil. Around the world, farmers and scientists are scrambling to reverse much of the damage to the soil with a repeated focus on performance and volume output. Applying more of the same is indeed the definition of insanity. Perhaps the solution for a hungry world and our domestic client is not in more — but in less — of greater nutrient density. To offer nutrient-dense food, every food animal industry must revisit the models they have for crop production and animal feed. Not for the faint of heart, soil health like human health may require a healing period and an adjustment of old patterns to enrich the soil. Where do we start? For beef I would suggest that the day of antibiotic use outside of individual prescription, implants and muscle-enhancing products are coming to a close. Both the domestic consumer and non-tariff barriers will dictate this. Cattle feeding for Canada will then be redefined. Naturally, the quality of the feed and feed enhancements will be reflected by the quality of the soil in performance and quality of grade as well as the nutrient value of product. Grabbing the attention of our customer, both domestically and internationally, starts from the ground up. Breaking out of volume and sameness paradigms must be supported by a collaborative scientific effort between disciplines and the creation of a valuebased system of marketing. The relationship between soil health and human health has been recognized throughout history. It is a discussion worth having as we look to the future and send our scouts ahead. At some point we will return to healthy soil as our greatest competitive advantage. 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

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 prime cuts

By Steve Kay

COOL and warmer weather

I

t’s a coincidence that May will herald one of the last chapters in the long-running saga over country-of-origin labelling just as the spring grilling season begins. But it’s worth noting that COOL supporters claimed that COOL would improve demand for U.S. beef and that consumers would pay more for it. What has happened since COOL was implemented has scotched these claims. Consumer surveys showed that only a small minority of consumers were even aware of COOL labels. Furthermore, COOL has provided absolutely no economic benefits to the U.S. beef industry. The bottom line remains: consumers put price at the top of their list of factors in buying beef. As you know, the World Trade Organization’s Appellate Body will circulate its ruling on the final U.S. appeal over COOL no later than May 18. WTO-authorized retaliation by Canada and Mexico might be authorized as soon as 60 days after that. Tariffs imposed by the two countries could amount to $1.5 billion annually. Export sales might be lost even before then, say the U.S. Chamber of Commerce and other groups. They thus continue to urge Congress to move swiftly to approve legislation that would repeal the COOL requirements for muscle cuts. But there’s no chance of anything happening until after the WTO circulates its ruling. It might take the imminent introduction of retaliatory tariffs in July or August to force lawmakers to rescind part of what has turned out to be one of the most ill-advised laws ever forced on the North American meat and livestock industry. The U.S. beef industry meanwhile is hoping that May will be warm and herald a much-needed boost in beef sales at retail and food-service. May always promises better demand, with the start of the grilling at the start of the

month, Mother’s Day (on May 10 this year) and the big Memorial Day (May 25) holiday weekend. Beef sales have been weaker so far this year than last, in part because of record-high retail beef prices and brutal winter weather in the Northeast, which saw record snowfalls in some cities. Beef sales were lost, particularly at the restaurant level, and the entire first quarter was a struggle for packers to come close to making money. Operating margins for fed beef processors were negative by US$42.74 per head in the quarter, according to HedgersEdge.com. It reported positive margins in only two weeks out of 13. While earnings reports by Tyson Foods and others will likely show better results than these, losses likely occurred similar to those in the fourth quarter (when Tyson Beef had an operating loss of $6 million). Another yardstick by which to measure whether packers are making money or not is weekly slaughter levels, and in particular steer and heifer slaughter. In this regard, packers lost money. Total cattle slaughter in the quarter was down 7.1 per cent or an estimated 509,000 head on the year-earlier quarter. Total slaughter of 502,000 head the week ended April 11 was the smallest regular-week kill in many years. Steer and heifer slaughter that week at an estimated 394,000 head was the lowest of its kind for April since 1966. May slaughter last year averaged 618,000 head per week and June slaughter averaged 612,000 head. But slaughter levels this year in these months will be far below that unless beef sales improve significantly and cattle feeders decide to get much more aggressive in their marketings. The industry is thus hoping that Americans grill a lot of steaks and hamburgers. But beef will have a lot of much-cheaper pork and chicken to contend with. c

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C a t t l e m e n · m ay 2 0 1 5 37

 TH E INDUSTRY

NewsRoundup Youth

4-H Beef Club earns national award

Brainstorming ideas for an invention that could change the world of agriculture got members of the Abbey-Lancer 4-H Beef Club of Pennant, Sask., thinking about an easier way to apply electronic identification tags without the use of tagging pliers. In the end, they came up with not one, but two ideas to win the club category in 4-H Canada’s introductory Science and Technology Contest. It takes quite a bit of pressure on the taggers to squeeze the CCIA (Canadian Cattle Identification Agency) tags onto the ear, explains club leader Pam Heller. Farm demographics have changed and today there are lots of older people, women, and kids taking care of cattle. Many don’t have

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C a t t l e m e n · M ay 2 0 1 5

the hand strength to give the pliers a good quick squeeze to lock the tags in place. The club submitted ideas for a pistoltype applicator and for eliminating an applicator altogether by somehow encapsulating the electronic data in a magnetic rumen bolus of the sort commonly used to prevent hardware disease in cattle. “The magnet seems to be the biggest one of interest,” Heller says. “It takes care of two things: traceability for the rest of the animal’s life and protection from hardware disease for a lifetime. The chance of a rumen magnet passing through an animal is very slim compared to the frequency of lost tags, but you’d need to have something noticeable, like taking a little ear snip, to know which calves already have a bolus.” The  club’s  15  members,  ages  eight through 19 years, were truly surprised when they received news of the award because it was a project Heller encouraged them to take on just for the experience. Now they’re pumped on science! That was 4-H Canada’s goal behind organizing the contest to introduce science and technology programing to 4-H’ers. Winners in the individual category were Charlene Elliot of Kitchener, Ont., for her idea for machinery that cleans freestall cow beds, and Isaac Boonstoppel of Scotchlake, New Brunswick, for his idea for a dairy stall cleaner. Dalhousie University’s faculty of agriculture, Truro, Nova Scotia, put up gift cards as prizes, but was arranging with 4-H Canada to convert the club’s $750 gift card into a private tour of a science facility in Saskatchewan. Put your thinking caps on early and watch for the announcement this September about the second 4-H Canada Science and Technology Contest. The winners of that contest will have the chance to participate in the first annual 4-H National Science Fair next year for an opportunity to advance to the Canada-Wide Science Fair (CWSF), says 4-H Canada’s Jennifer Austin. The 4-H fair has been sanctioned by the CWSF as one of its participation streams. As many as 500 Grade 7 to 12 students representing regional science fairs participate in the

CWSF. The 54th annual CWSF was hosted by the University of New Brunswick, May 11-16 (https://cwsf.youthscience.ca/). In other 4-H news, the Saskatchewan 4-H Council will receive $350,000 per year with a new three-year agreement under Growing Forward 2 now in place. According to the Saskatchewan Ministry of Agriculture’s news release, this is an increase of $50,000 a year over the last agreement. The ministry has been a Saskatchewan 4-H supporter for more than 20 years. Saskatchewan 4-H has more than 200 clubs and 800 volunteer leaders.

History

CCA had a hand in creating the capital gains exemption

The promise in the recent federal budget to increase the Capital Gains Tax Exemption to $1 million from $813,000 in 2015 brought back a flood of memories for former Canadian Cattlemen’s Association general manager Charlie Gracey about the role past president Gerard Guichon played in its establishment. The story begins back in 1962 when the Carter Commission recommended that capital gains be taxed at full rates. In his 1969 budget The Honourable Edgar Benson announced that such a tax would be introduced and, whether he said it or not, the phrase “a buck is a buck” was attributed to him as the rationale for the Carter Commission’s recommendation. “Gerard Guichon and his family operated a ranch in the Nicola Valley at Quilchena, B.C. He, certainly among many others, realized that capital gains taxation would make it difficult, and in many cases completely impossible to transfer a farm or a ranch to the next generation if money had to be raised to pay the deemed capital gains on the property. Other business leaders also decried the simplistic ‘buck is a buck’ adage and eventually the government conceded the point and decreed that capital gains would be taxed at half-rates. The tax was to be implemented at the initial valuation date of Jan. 1, 1972.” Continued on page 40

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At the time the CCA’s tax and finance committee was chaired by Guichon who was already well known and respected in Ottawa. “No one ever accused Guichon of being an orator, or an activist, but he had an impressive intellect and was a sound businessman. He worked tirelessly to persuade tax officials and politicians that imposing a capital gains tax on farmland at every generational transfer would spell the death knell for the family-farm businesses across Canada. Thus it was that,

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primarily due to the sound reasoning and efforts of Gerard Guichon and the Canadian Cattlemen’s Association that a capital gains exemption, in the initial amount of up to $400,000, was granted to farm property transfers,” says Gracey. “The present generation of farmers and cattlemen can hardly be expected to remember how this all came about so I wanted to tell them of this enormous contribution made by Gerard Guichon and the CCA.”

drugs

Good riddance to old livestock meds

CleanFARMS and the Canadian Animal Health Institute (CAHI) will once again be offering collection of obsolete (old, unwanted) livestock medications in conjunction with the obsolete pesticide collection program. The 2015 schedule takes the program to the Okanagan, Interior and Kootenay regions of British Columbia, Red Deersouth region of Alberta, Davidson-north region of Saskatchewan and across the provinces of Nova Scotia and New Brunswick. The schedule and drop-off locations will be announced in June. There is no collection charge and the unwanted products will be safely transported for disposal at a high-temperature incineration facility. Collection of obsolete livestock medications was introduced as a pilot project in Ontario in 2013 and last year was added to the regular schedule for obsolete pesticide collections. CleanFARMS has been running the obsolete pesticide collection program since 1998 offering the service in each province at least every three years. In 2016, collection points will be organized for Red Deer-north in Alberta and the whole of Manitoba, Ontario and Newfoundland. The rotation starts over again in 2017 with the return to British Columbia’s Fraser Valley and Vancouver Island, Davidson-south in Saskatchewan, and across Quebec and Prince Edward Island. The CAHI’s members are developers, manufacturers and distributors of animal health products. CleanFARMS is an industry stewardship organization focused on proper management of agricultural plastic packaging and other non-organic waste generated on farms. It is funded by members from Canada’s crop science industry (developers, manufacturers, distributors and retail-

ers of pest control products and fertilizers) with costs recovered in the purchase price of products. Other funders may be involved depending on the province and project. CleanFARMS’ flagship collection program for empty pesticide and fertilizer containers hit a landmark in 2013 with the 100th million container collected for recycling since the program was launched in 1989. Collection of empty seed and pesticide bags is being introduced this year from May through September in agricultural regions of Ontario, Quebec and the Maritimes. After two years of piloting a collection program for ag film (plastic bale and silage wrap and grain bags) and plastic twine in Manitoba, this new service was scheduled for the last week in March and will run again October 26-31 in the Neepawa area, Steinbach, and rural municipalities of Dauphin, NorfolkTreherne, Portage la Prairie, and Edward. Funding was provided by Green Manitoba, an agency of Manitoba Conservation and Water Stewardship. The Ontario Ministry of Agriculture funded the 2013 pilot for collecting plastic ag film and twine in Ontario. Other private and local collections are now serving the province’s needs. CleanFARMS spokesperson Erin O’Hara says options for recycling these products seem to be opening up as technology changes. A few companies are now actively looking for plastic ag film and twine. One recycler is trying to recycle netting. For more information visit www.cleanfarms.ca.

environment

Holos — a farm tool to assess GHG emissions By Peg Strankman

Assessing greenhouse gas (GHG) emissions from beef production using the Holos software was the focus of a third annual Holos workshop, held recently in Airdrie, Alta. GHG emissions and carbon footprints are a major focus within the industry today as consumers demand information about how their food is produced. A concern that this growing pressure may push producers into ill-informed decisions that would have an impact on long-term environmental and economic performance is why Agriculture and Agri-Food Canada (AAFC) developed the Holos GHG software 10 years ago. The beef cattle industry is important

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N EWS ROUNDUP

to the Canadian economy contributing $13 billion in 2011 to the gross domestic product. It also contributes about 72 per cent of livestock emissions, according to Environment Canada. Producers are in need of tools to provide the management information being demanded by the food industry. “Holos is a software program addressing that need. It is a both a model and a tool,” says Dr. Roland Krobel, the AAFC scientist in charge of program development. “Holos views the farm as a system and models the current known science of GHGs.” Two major challenges run through the Holos work. One is the need to keep current and accurate with the science supporting the equations that make the model work. To that end Holos is based on data from the Intergovernmental Panel on Climate Change modified for Canadian conditions when possible. A second challenge is to make sure it meets producer needs and is user friendly. “It goes beyond the accounting question of what are the farm’s emissions. It answers the question of what will the emissions be if management is modified,” says Krobel. The Holos software is accessible at www.agr.gc.ca/holos-ghg. Producers are encouraged to input their management information and comment back to AAFC at Holos@agr.gc.ca. Holos algorithms have been utilized recently by Dairy Farmers of Canada in a proAction initiative to improve on-farm excellence by Serecon with the Canadian Field Print Initiative, and by Deloitte in a life cycle assessment of the Canadian beef supply chain. The Holos development team is currently looking

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News Roundup Continued from page 41

for partners to turn it into a viable commercial product. Matthew Wiens of Manitoba Agriculture, Food and Rural Development, and Drs. K. Keriyapperuma and G. Dias of the University of Guelph used Holos to determine soil carbon sequestration in a six-year stand of alfalfa/grass hay. Holos provides the oppor-

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tunity to choose an appropriate ecodistrict baling consuming the most, about 15 per with soil texture and type to model the carcent each of the total energy consumed. bon when fields were switched from annual Fertilizer manufacture contributed about crops to perennial alfalfa and grass hay. 34 per cent of the total energy consump“We found that kilograms of carbon tion. Seed production, establishment tilldioxide (CO2) sequestered per tonne of age, seeding and application of fertilizer/ hay ranged from a little over 74 in the first herbicide contributed minimally to the year to just over 67 in the final year resulttotal energy use. ing in a total of about 350 kilogram CO2 Diesel fuel use represented about 59 equivalent/tonne. Although this estimate per cent of energy consumption with total is subject to uncertainty (+/- 40 per cent), diesel fuel use amounting to 4.3 litres/bale. but is still more conservative than recent Nitrous oxide emissions dominated the Manitoba studies which found 400 and GHG emissions (70 per cent) during hay 600 kg CO2eq sequestered per tonne of production with the majority coming from hay,” said Wiens. dry lot manure application. “The Holos tool shows farmers where Potential areas for improved fuel effiopportunities for carbon sequestration ciency may be practising optimum tractor exist, and where GHG emission hot spots maintenance, considering less power-intenare found. GHG emissions are often directly sive mower types, (e.g. cutter bar mower connected to farm inputs, so managing for conditioners), using net wrap instead of reduced emissions often means managing twine to reduce wrapping time, using a skid for reduced input costs,” said Wiens. For steer to load bales instead of a tractor, colexample, Holos calculator results include lecting bales with a round bale mover, and estimates of GHG emissions from fertilizer considering large square balers combined manufacture. with bale accumulators, said Wiens. “Additional software facilitated our A group of Canadian scientists used larger life cycle analysis of alfalfa/grass hay Holos to estimate the variability of Cdn_Shorthorn_Assn 12/6/07and11:09 AM emission Page 1intensities among Canaproduction identifying the mowing GHG baling operations as high energy users, in dian cow-calf production systems using other words high fuel users. Diesel fuel actual farm data collected in 2012 from represented 59 per cent of energy cona structured survey of 1,009 farms across CSA Bus. Card Jan04 12/9/03 11:21 AM Page 1 sumption with the actual mowing and Canada. The survey gathered data about

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5160 Skyline Way NE Calgary, Alberta T2E 6V1 Phone: (403) 275-2662 Toll Free (888) 836-7242 Fax: (403) 295-1333 Toll Free: (888) 824-2329 www.hereford.ca

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NEWS ROUNDUP

various aspects of individual beef operations including feed production, grazing management (warm and cold seasons), seasonal feeding areas, feeding in barns or feedlots, manure handling, storage and application, use of shelterbelts, and factors influencing adoption of new technology. The results have been published in the Canadian Journal of Animal Science (Sheppard et al. 2015). With the aim of assessing the environmental impacts (GHGs) of beef farms, Drs. A. Alemu, B. Amiro, S. Bittman, D. MacDonald, and K. Ominski are conducting total farm simulations based on the actual farm data obtained from the survey using the Holos model. Alemu and his collaborators selected 295 cow-calf producers who reported sufficient information to estimate GHG intensity. Farms have been categorized based on emission intensity estimates and they are now examining differences in management practices between high- and low-emitting farms. Management practices examined include live weight sold, calving date, calving and weaning weights, replacement rate, and manure management strategies. “Our study demonstrates a whole-

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farm analysis, considering the diversity of beef production systems, is required in developing and implementing farm-level GHG mitigation programs and policies,” says Alemu. Dr. Getahun Legesse and colleagues at the University of Manitoba and Lethbridge Research Centre (AAFC) are assessing the impact of improvements in the efficiency of Canadian beef production over the past 30 years based on the environmental footprint of beef. This project, led by Dr. Tim McAllister (AAFC Lethbridge), is using the Holos model to evaluate greenhouse gas production including methane emissions from cattle and manure, nitrous oxide from manure and soils, and carbon dioxide emissions. The second phase of the work will identify the important ecosystem services sustained or impacted by beef production and formulate an approach for evaluating them jointly for whole systems. This whole-systems approach facilitated by the Holos model ensures a management change in one area doesn’t inadvertently cause a negative GHG impact in another area of the farm. c

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43

 NEWS ABOUT YOU

PurelyPurebred n  We   a r e   h a p p y   t o announce Mike Millar is joining Canadian Cattlemen as our new national advertising sales representative effective May 18. He will work out of his home Mike Millar at Grandora, Sask., where he and his family operate a small Simmental herd. During his career off the farm he has served in sales management positions with ABS Canada, Keystone Agri-Marketing, Highline Manufacturing, National Alfalfa Trading Co., and for the past 15 years with DTN, the agricultural information company. He’s also an active volunteer with 4-H and Asquith First Responders. n Dr. John Crowley, the University of Alberta researcher who is also director of scientific and industry advancement for the Canadian Beef Breeds Council (CBBC) is lookDr. John Crowley ing for funds for a threeyear pilot project to improve genetic evaluation for the 10 “niche breeds” under the CBBC umbrella. Specifically this includes: Blonde D’Aquitaine, Braunvieh, Dexter, Galloway, Hays Converter, Lowline, Maine Anjou, Salers, Shorthorn and Speckle Park, all breeds that register less than 2,000 head per year. Within this group Crowley says some do genetic evaluation, some do data recording but little evalution, and none is involved in genomics. “Ultimately, by the end of the project, I would like to see all the breeds doing genetic evaluation and picking animals on EPDs and where EPDs already exist, incorporate genomics as well as expand the suite of traits,” says Crowley. n The Friends of Canadian Simmental Foundation will be hosting their Fundraising Auction on August 1 in Lindsay, Ont. in conjunction with the CSA Annual Meeting at 7:30 p.m. The proceeds support youth activities as well as the CSA’s research initiatives and scholarships through the Friends of Canadian Simmental Foundation. For more on the auction contact co-chairs:

44

C a t t l e m e n · m ay 2 0 1 5

Deanne Young 780-696-3643, or Ron Nolan 905-330-5299. n Meghan Black is the new industry and member services representative at the Canadian Simmental Association. Her primary responsibilities is to meet the advertising and Meghan Black marketing needs of CSA members through the association’s publication Simmental Country, and provide field service to the beef industry on behalf of the CSA. Meghan is originally from Bloomfield, New Brunswick, where her family runs a cow-calf operation. She’s been an active member of the 4-H program for 13 years, and participated in the Cattlemen’s Young Leader is program in 2013. She is a graduate of Dalhousie faculty of agriculture. n Gaylene Groeneveld is the new CEO of the Canadian Gelbvieh Association, replacing long-time manager Wendy Belcher who passed away in mid-January. Groeneveld is no stranger to the organization having worked for the breed for 10 years as assistant office manager and publisher/editor of the breed publication Gelbvieh Guide. n The Canadian Beef Breeds Council (CBBC) re-elected David Bolduc as president and Garner Deobald as vice-president at its recent annual meeting. New to the board this year is Stephen Scott of the Canadian Hereford Association joining sitting board members: Anne Brunet-Burgess, Bruce Holmquist, Roger Peters, Rod Remin, Rob Smith and Byron Templeton. One of the big issues for the current board is the need to reduce the long waits for import permits on breeding cattle from the U.S. In past years it would have taken one to five days to obtain a permit, whereas this year the CBBC says it may take 20-30 days. Long enough that health tests sometimes expire before the permit is granted, adding to the cost and frustration of breeders. The delays are afflicting not only live cattle but semen, embryo, equine, poultry (chicks) and other livestock interests, said CBBC executive director Michael Latimer in a note to his

members. “Several industry organizations have been working together and closely with government agencies to reduce this delay and we are confident that our message has been heard and will be acted upon.” In the meantime Latimer is asking breeders who experience significant delays or know someone who has, to email him with the details at mlatimer@beefbreeds.ca as specific cases are needed to illustrate the problems this creates for producers. n The CBBC presented its Don Matthews award to embryo transfer pioneer Dr. Murray Jacobson at the close of its 2015 annual meeting. The award recognizes people who have made significant contributions to the purebred beef industry. Jacobson certainly meets this criteria. In the early ’70s he was at the Rockyview Animal Clinic in Calgary when dentist David Dryholm founded Alberta Livestock Transplant (ALT) and interested Jacobson in this new technology. ALT performed its first transfer on October 16, 1971. In 1974 he and his vet partners established Calgary Transplant just west of Balzac. That lasted until 1977 when the Rockyview clinic was dissolved and Jacobson moved to Lethbridge to farm. In 1979 he joined up with Dr. Darrell Dagraft to form Bova Tech. By the early 1980s they were doing non-surgical transfers and freezing embryos. Over the next 30 years Jacobson and his partners transferred embryos across Western Canada, the U.S., New Zealand and Mongolia until 2012 when he sold his Simmental herd and his interest in Bova Tech. He also served as president of the Canadian Simmental Association from 2006 to 2008.

Sales results Summit 3 Speckle Park Sale Ardrossan, Alta., April 3

15 22 8 12 30

Extra-age bulls, av. $9,033.33 Yearling bulls, av. $6,300.00 Open heifers, av. $11,218.75 Embryos, av. $1,106.25/embryo Units of semen, av. $191.67/straw

www.canadiancattlemen.ca

PURELY PUREBRED

n In 2015 Charolais bulls recorded the highest overall sales average and total gross dollars in the 34 years the Charolais Banner has been compiling bull sale results. At 82 sales, six more than 2014, the overall average rose by $1,848 to $6,617 and the total gross increased by $6.7 million to $19.5 million. Banner publisher Helge By says more than 90 bulls sold for $10,000 or more. n Alberta Limousin breeders are being asked to pencil in June 20 for the third annual ALA field day in the Brooks area this year. The morning will start off with a free pancake breakfast followed by the ALA annual meeting, then a couple of farm tours and a visit to Bow Valley Genetics before finishing up with a steak supper in Rolling Hills and a calendar auction. Registration is $50. For details contact Carla DeJager at 403-964-2587 or jaapcanada@eidnet.org. n Anne Brunet-Burgess has resigned as the general manager of the Canadian Limousin Association after six years to become the Continued on page 46

Canadian Western Agribition board of directors.

n Stewart Stone of Regina was elected president of Canadian Western Agribition (CWA) during its annual meeting last month. Stone has been involved with CWA for 18 years, serving on the board of directors for 14 of those years during which he chaired the dairy, international, audit, governance and rodeo committees. He is the COO of Heartland Livestock. Joining him on the executive are vice-president Bruce Holmquist of Saskatoon, members at large Chris Lees of Arcola, Blake MacMillan of Nokomis, Bryce Thompson of Regina and past president, Reed Andrew of Regina. The remaining board members are: Rich Harries, Morden, Man.; Curtis Kuchinka, Regina; Michael Latimer, Calgary; Courtney MacDougall, Regina; Barry Young, Carievale, Sask.; Elmer Eashappie, Regina; Doug Fee, De Winton, Alta.; Kim Hextall, Grenfell, Sask.; Carla Schmitt, Saskatoon and Levi Wood, Regina.

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C a t t l e m e n · m ay 2 0 1 5

45

PU R E LY PU R E B R E D

Continued from page 45

general manager of the Canadian Cattle Identification Agency on June 1. Before joining the CLA she was office manager of Remington Land and Cattle. Anne says she plans to remain with the CLA through a couple of weeks in May to help finish up the migration of the Canadian registry to Digital Beef of San Antonio, Texas, which also manages the registry of the American Limousin Association. No replacement for Anne was named by press time. n The Canadian Red Angus Promotion Society (CRAPS) has partnered with Bouchard Livestock International to rejuvenate the historic Red Roundup sale in Red Deer October 22-24 on its 43rd anniversary. Operating on the theme of Come Back to the Auction

bull Sale results maritime beef testing society bull sale — april 4 nappan, n.s.

Number of lots sold

Average price

Breed

2015

2014

2015

2014

9

16

Black Angus

$4,738

$2,444

9

14

Charolais

5,627

3,207

1

7

Hereford

3,800

2,207

3

3

Hybrid Cross

4,466

2,183

8

4

Limousin

4,750

2,900

2

3

Red Angus

3,300

3,100

2

4

Salers

3,950

2,375

—

1

Shorthorn

—

1,800

17

17

Simmental

4,735

3,0 14

51

69

TOTAL

4,774

2,746

douglas bull test station sale — april 4 douglas, man.

Number of lots sold

2015

Average price

Breed

2014

2015

2014

Angus

$3,922

$3,496

50

28

3

1

Blond d’Aquitaine

3,916

3,600

1

—

Charolais

2,500

—

—

11

Composite

—

2,664

6

6

Limousin

4,341

2,800

1

1

Maine-Anjou

3,000

2,600

1

2

Salers

5,200

3,100

11

9

Shorthorn

3,713

3,089

11

13

Simmental

3,890

2,600

84

71

TOTAL

3,908

3,070

46

C a t t l e m e n · m ay 2 0 1 5

the weekend will start with the Frozen Genetic & CRAPS Charity Fundraiser on the Friday evening followed by the cattle sale on Saturday the 24th. Added this year will be a jackpot people’s choice in place of the bull show and display. The early nomination deadline is June 1, with the final nomination deadline set for June 15, 2015. Sale nomination forms and additional information can be found at www.bouchardlivestock.com and www.redangus.ca. n At the end of March the joint Canadian Angus Association (CAA) Certified Angus Beef (CAB) seminar in Lethbridge for the feedlot sector in Lethbridge attracted 52 participants to hear seven informative speakers. Casey Vander Ploeg, manager of policy and research for the National Cattle Feeders’ Association (NCFA) talked about Canada’s national beef strategy, Canfax manager Brian Perillat, gave a market update and Leighton Kolk of Kolk Farms and a partner in the Allied Marketing Group (AMG) talked about his operation and AMG’s partnership with Certified Angus Beef. John Paterson with the National Cattlemen’s Beef Association (NCBA) discussed consumer perception as viewed by NCBA and growing trends in the marketplace. John Lines, operations manager for Cargill Animal Protein at High River, emphasized the need for co-operation among everyone along the supply chain to ensure that the best-quality product arrives at the processing plant. Brothers David and Dyce Bolduc of Cudlobe Angus pointed out how genetics play a large factor in their selection for traits to maximize functionality and carcass quality. Larry Corah, CAB’s vice-president of supply development for Certified Angus Beef wrapped up the day by looking at the growth and potential for CAB in Canada. n Wyatt Millar, 16, of Grandora, Sask., is a member of Catherwood Beef and Sheep 4-H and this year he has set himself a special project — to raise $10,000 for equipment at the Saskatoon Cancer Centre. For his own part Wyatt is donating the proceeds from his 4-H steer “Paying it Forward” being sold at the Prairieland Junior Ag sale July 6. He’s also growing out his hair and will have it cut off at the sale to be turned into wigs for cancer victims. In this way he is raising awareness of the cancer centre and is asking others to join him in meeting his target. To donate online visit http://donate.saskcancer.ca and the link to Wyatt Millar: 4-H Pay it Forward. Bryce Fisher and Raquel Dyck of R&F Livestock donated the steer. c

Wyatt Millar

www.canadiancattlemen.ca

 Market Su mma ry

By Debbie McMillin

TheMarkets Fed Cattle The fed cattle market at the start of the second quarter was nothing short of amazing. Even with volatile technical factors and a downturn in the U.S. the local fed market continued its run-up. Mid-April Alberta average steers broke into untested waters again, reaching $201.43/cwt, $56 higher than the same week last year. That’s $760 more per head for a 1,350-lb. animal. It’s also $87/cwt or $1,175/head higher than the five-year average. The cash-to-futures basis was 4.84/cwt. A positive cash-tofutures basis has occurred before but is uncommon, particularly in April. Last year it was -11.24/cwt. Cash-to-cash basis remained under the U.S. market, at -7.95/cwt in mid-April which is still strong compared to -20.72/cwt at this time last year and the five-year average of -12.34/cwt. Cattle-on-feed numbers were down again for the eighth consecutive month. On April 1, Alberta and Saskatchewan lots over 1,000 head, were feeding 878,763 cattle, down 11 per cent year to year. March placements were down three per cent from 2014, the second-smallest March inventory since Canfax started recording western cattle on feed in 2000. These tight supplies were evident throughout the chain with Canadian fed steer slaughter down six per cent at 330,859 on the year and heifer slaughter down one per cent at 230,015 head. Exports of slaughter cattle to the U.S. are off by 44 per cent from a year ago.

Feeder Cattle The feeder market was up across all classes. Grass cattle in particular were favoured as pastures start to green up and buyers look to put packages together. By mid-month 550-lb. steers were averaging $329.68/cwt or about $1,800/head.

www.canadiancattlemen.ca

That amounts to an increase of $113/ cwt or $621.50/head over a year ago. The 850-lb. feeder steers gained seven per cent over the past several weeks to average $250.50/cwt, nearly $2,130/head, which is $680/head or $80/cwt more than a year ago. In addition, premiums continue to push breeding quality replacement heifers higher. The 850-lb. feeder basis is currently at -12.38/cwt, much stronger than the -24.02 posted at the same time last year. At the same time the lower Canadian dollar, reduced North American cattle numbers and competitive cost of gain have encouraged exports of feeder cattle. To April 4, feeder exports to the U.S. were up nine per cent at 157,449 head.

Non-Fed Cattle Cull cow marketings in 2015 have been small, however, demand remains high, pushing D1,2 prices to new highs each month. To mid-April D1,2 cow prices were up 15 per cent from the start of 2015 to a record $151.17/cwt, nearly $47/cwt higher than last year. Tight supplies are also evident in the slaughter and export numbers. Cow slaughter during the first quarter has been one of the smallest in recent years, and currently is down 14 per cent to 111,803 head while exports are down 31 per cent at 59,785 head. Butcher bull prices also reflect the strength in this cattle-short market, averaging $170/cwt at mid-April. Bull slaughter is up 33 per cent but the numbers are small, only 1,100 head. The U.S. is the preferred market for bulls but even there, exports are down four per cent at 18,159 head. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets 

 DEB ’S OUTLOOK Fed Cattle 2015 should follow a more normal seasonal pattern than we saw in 2014, with a typically sluggish summer market. In the near term barbecue demand, tight local supplies and a low dollar will limit downside potential and lend support to the fed market. However, keep an eye on consumers and competing meats this summer. In the face of record-high retail beef prices, pork and poultry are priced over last year but recorded a downturn in the first two months of the year. The fundamentals are good: tight supplies and strong demand, but larger supplies of these lower-priced competitive meats, concerns about packer margins and seasonally larger supplies are factors that weigh on the fed market this summer. Feeder Cattle Optimism continues to fuel feeder prices. The main concerns as we move through the summer and into the fall are cost of gain, feedlot margins, risk management opportunities and the Canadian dollar. Supplies of feeder cattle are smaller and more varied in quality moving through the summer. The seasonal trend for the heavier cattle should hold and prices should be steady to stronger on reduced volumes leading up to the yearling run at the end of the summer. Lighter numbers will taper off with offerings being of mixed quality and priced accordingly. Non-Fed Cattle Heavy cow and bull marketings over the past few years have left smaller numbers of cull cattle available for slaughter. Recordhigh feeder prices have also encouraged producers to get one more calf out of those older cows right now. Tight North American supplies, a strong fed market and lower Canadian dollar provide strong support for cows and bulls heading into summer, right when the demand for grinding meat is already at a seasonal high. Look for a strong non-fed market through the second quarter.

C a t t l e m e n · m ay 2 0 1 5 47

MARKETS

Break-even Prices on A-Grade Steers 210

ALBERTA

190

340

(500-600 lb.)

250

150

220

130

190 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

2015 2014

April 2015 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . $246.34/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.65/bu. Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.13/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . . 71.26/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . 107.40/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198.91/cwt Break-even (September 2015) . . . . . . . . . . . . . 191.75/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $242.71/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.52/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.94/bu. Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . . 77.23/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . 106.46/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198.28/cwt Break-even (October 2015) . . . . . . . . . . . . . . . 186.33/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

D1,2 Cows

140 120

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

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

160

170

110

Steer Calves

310 280

170

110

Market Prices

60

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 April 11) 2015

2014

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . . . 673,777. . . . . . . . . . . . 717,173 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 879 lb.. . . . . . . . . . . . 854 lb. Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,194,000. . . . . . . . 8,860,000

Trade Summary Exports 2015 2014 Fed cattle to U.S. (to April 4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,370.. . . . . . . . . . . 119,019 Feeder cattle and calves to U.S. (to April 4). . . . . . . . . . . . . . . . . . 157,449.. . . . . . . . . . . 144,812 Dressed beef to U.S. (to Feruary). . . . . . . . . . . . . . . . . . . . . . . 79.48 mil.lbs.. . . . . .69.09 mil.lbs Total dressed beef (to February). . . . . . . . . . . . . . . . . . . . . . 108.16 mil.lbs.. . . . . . 97.03 mil.lbs IMPORTS 2015 2014 Slaughter cattle from U.S. (to February) . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to February) . . . . . . . . . . . . . . . . . 41.67 mil.lbs. . . . . . . 48.31 mil.lbs *Dressed beef from Australia (to February) . . . . . . . . . . . . . 6.19 mil.lbs. . . . . . . . 6.88 mil.lbs *Dressed beef from New Zealand (to February) . . . . . . . . . 2.84 mil.lbs. . . . . . . . 2.34 mil.lbs *Dressed beef from Uruguay (to February) . . . . . . . . . . . . . . 9.76 mil.lbs. . . . . . . . 1.1 8 mil.lbs Canadian Grades (to April 18, 2015) % of A grades +59% 54-58% AAA 2 1.5 24.6 AA 20.7 8.9 A 1.0 0.1 Prime 0.3 0.7 Total 34.3 43.5 EAST WEST

Total graded 162,431 549,648

Yield – 53% Total 16.5 62.6 2.9 32.5 0.0 1.1 1.4 2.4 20.8 Total A grade 98.6%

Total ungraded 6,454 2,020

% carcass basis 81.2% 87.7% Only federally inspected plants

48

C a t t l e m e n · m ay 2 0 1 5

www.canadiancattlemen.ca

 market ta l k

By Gerald Klassen

Feeder Cattle Forecast

I

’ve received many inquiries over the past couple of weeks in regards to the feeder cattle price outlook for the fall period. Recently, we have seen some astronomical prices in the deferred positions with 900-pound steers being forward contracted at $240 for late-August delivery in southern Manitoba. The weak Canadian dollar is having a large influence on the price structure for both fed and feeder cattle. Fed cattle prices continue to trade at historical highs near $198 at the time of writing this article. The deferred live cattle futures are showing a similar value as the nearby contracts reflecting the market feel that Canada and U.S. beef production will experience moderate year-over-year increases. Feed grain prices are the second larger influence on the feeder cattle market. Canadian barley acres are expected to rise by nine per cent over last year but the U.S. corn market is contending with a potentially smaller crop due to a year-over-year acreage decline of two per cent. Looking at the numbers, the U.S. 2014 calf crop was estimated at 33.9 million head, which was up a meagre 0.5 per cent from 2013. U.S. beef cows as of January 1 were up two per cent while heifers for beef cow replacement were up four per cent. It appears that the 2015 calf crop will experience another modest increase of possibly 1.5 per cent adding a potential 0.5 million head to the available supply. U.S. heifer retention will likely remain constant at four per cent and we also have to take into account an estimated cow slaughter. The 2014 Canadian calf crop was estimated at 4.6 million head, up four per cent from 2013. Higher prices have not encouraged heifer retention in Canada but rather keeping the herds at similar size. Canadian feeder cattle supplies will likely remain constant in 2015 with a calf crop of 4.6 million head. Feedlot operators have experienced unprecedented margins for an extended period of time due to rising fed cattle prices. Traditionally, cattle feeders bid up the price of feeder cattle until the feeding margin is $0 or even a slightly negative. Therefore, it is important to have an idea of the fed cattle prices for the fall period. U.S. 2015 firstquarter beef production came in below expectations experiencing a year-over-year decrease of 3.4 per cent. We may see a minor decline during the second quarter but the USDA is projecting a negligible year-over-year increase in the third and fourth quarter. The main point is supplies are not becoming tighter but rather stabilizing. Winter conditions along the U.S. Eastern Seaboard were extremely harsh while Quebec and Ontario experienced below-normal temperatures and above-normal snowfall. This tempered consumer food

spending during January and February. We now see pent-up demand stepping forward in March and April. Wholesale beef prices have reached historical highs and retail prices have experienced a sharp jump over the past month. Restaurant spending during the third and fourth quarter of 2015 is expected to increase by three per cent while at-home food expenditures are expected to increase by four per cent. The Canadian dollar is also stabilizing and despite analysts projecting lower crude oil prices, I feel the energy markets have also stabilized for the time being. I’m not expecting further downside in the Canadian dollar but a stable to slightly stronger exchange rate in the fall period. Fed cattle prices have potential to slightly soften from current levels in the third and fourth quarter. Notice that 2014 U.S. pork production is expected to increase by 1.3 billion pounds but in past history, this has little effect on the beef market when the economy is running full steam. When people have disposable income, they don’t typically alter their taste preference. Feed barley has been trading in the range of $180 to $185/mt for September delivery in the Lethbridge area. Despite the potential for larger acreage, I’m not expecting a softer barley market for two reasons. First, a normal-quality wheat crop in Western Canada will eliminate the large substitution effect on barley experienced during the 2014-15 crop year. Secondly, I feel the U.S. corn market has negligible downside from current levels because the fundamentals for 201516 are tightening, not loosening. The lower acreage has potential to result in a very volatile market during the pollination season and the constant demand for ethanol will keep the market well supported. In conclusion, I feel the feeder cattle market will remain relatively flat moving forward. Overall feeder cattle supplies will be similar to last year. The potential for slightly softer fed cattle prices and stabilizing exchange rate will keep feedlots on the defensive during the fall period. The downside in the feed grain complex is limited from current levels due to lower feed wheat supplies in Western Canada and the potential for firmer U.S. corn prices. The tendency for feedlot operators to bid up feeder cattle until margins are in negative territory after a profitable period will keep the feeder cattle market well supported. We cannot underestimate the “hope” factor where feedlots buy feeder cattle in hopes of higher fed cattle prices four to five months later. c Gerald Klassen analyzes markets in Winnipeg and also maintains an interest in the family feedlot in southern Alberta. He can be reached at gklassen7@hotmail.com.

u.s. quarterly beef production

u.s. quarterly pork production

(million pounds)

Quarter

2011

2012

2013

Estimated 2014

1

6,411

6,283

6,172

5,868

(million pounds)

Estimated 2105

Quarter

2012

2013

Estimated 2014

Estimated 2015

5,670

1

5,775

5,777

5,785

6,160

2

6,559

6,475

6,517

6,183

6,135

2

5,475

5,519

5,504

5,735

3

6,737

6,584

6,608

6,178

6,195

3

5,585

5,624

5,423

5,845

4

6,492

6,57 1

6,420

6,023

6,060

4

6,220

6,278

6,132

6,380

TOTAL

26,199

25,913

25,717

24,252

24,060

TOTAL

23,055

23,198

22,844

24,120

www.canadiancattlemen.ca

C a t t l e m e n · M ay 2 0 1 5

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 GOINGS ON

Sales&Events Events

28-30 Livestock Markets Association of Canada AGM, Airport Hilton, Winnipeg, Man., Host Mart — Winnipeg Livestock Sales

May

21-23 B.C. Cattlemen’s Association Annual Meeting, Merritt, B.C. 26-28 Canadian Animal Health Institute Annual Meeting, Esterel Resort, Esterel, Que.  ADVERTIS E R I ND EX Page Advantage Feeders 17 Airdrie Trailer Sales 43 13 Beef Cattle Research Council Boehringer Ingelheim 27 Canada’s Farm Progress Show 33 42 Canadian Angus Assoc. Canadian Charolais Assoc. OBC Canadian Forage & Grassland Assoc. 9 Canadian Gelbvieh Assoc. 42 Canadian Hereford Assoc. 42 42 Canadian Limousin Assoc. Canadian Red Angus Promotion Society 42 Canadian Shorthorn Assoc. 42 Canadian Simmental Assoc. 42 Case-IH IFC 43 Cattlemen’s Financial Corp. Cows in Control Marketing Group 42 Gilbrea Consulting Ltd. 42 Greener Pastures 38 Hi-Hog Farm & Ranch Equipment 43 42 International Stock Foods John Deere Ag Marketing Center 15 Lakeland Group/Northstar 10 a-p 40 Matchmaker Select Nester Livestock 35 42 Salers Assoc. of Canada Saskatchewan Stock Growers Assoc. 41 Triple M Ranch 42 Vermeer Corporation 23 Vetoquinol 5

June

3-6 C anadian Angus National Convention, Calgary, Alta. 4-6 Canadian Shorthorn Association Annual General Meeting, Brantford, Ont. 9-11 Canadian Animal Health Institute Meetings, Esterel Resort, Esterel, Que. 9-12 Beef Improvement Federation (BIF) Meeting, Biloxi, Mississippi 11-13 Canadian Charolais Association Annual Meeting, Brandon, Man. 15 Canadian Cattlemen Foundation Classic Golf Tournament, Heather Glen Golf Course, Calgary, Alta. 16 ALMA Future Fare Conference, BMO Centre, Stampede Park, Calgary, Alta. 17 University of Calgary faculty of veterinary medicine Beef Cattle Conference, Calgary, Alta. 22-30 World Charolais Technical Conference, starts in Regina, Sask. 23-24 T Bar International, Dakota Dunes, Saskatoon, Sask. 24 Western Beef Development Centre’s Annual Field Day, Termuende Research Ranch, Lanigan, Sask.

July

g in Motion — Western Canada’s A Outdoor Farm Show, Langham, Sask. 30-Aug. 2 Canadian Simmental Association Annual Convention, Lindsay, Ont. 30-Aug. 2 Young Canadian Simmental Association National Classic, Lindsay, Ont. 31-Aug. 2 Manitoba Youth Beef Round-up, Neepawa, Man.

August 8

anadian Limousin Association C Annual Meeting, Stratford, Ont. 12-15 Canadian Cattlemen’s Association Semi-Annual Meeting, Winnipeg, Man.

October 5-6

dvancing Women in Agriculture — A Life Skills for Leadership, Westin Harbour Castle, Toronto, Ont.

November

6-15 Royal Winter Fair, Toronto, Ont. 10-15 Farmfair International, Edmonton, Alta. 17-19 Canadian Forage & Grassland Association Convention, Saskatoon, Sask. 23-28 Canadian Western Agribition, Regina, Sask.

Sales May 30

2-5 Q uebec All Breeds Junior Show, Brome, Que. 3-12 Calgary Stampede, Calgary, Alta. 6-12 Summer Synergy, Olds, Alta. 16-18 Showdown 2015 — Canadian Junior Angus Association Annual Show, Olds, Alta.

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