Issuu

PATCH BURNING PASTURES Â· CONVENTIONAL BEEF IS MORE EFFICIENT

THE BEEF MAGAZINE

JUNE 2016 $3.00 WWW.CANADIANCATTLEMEN.CA

CAN WE RATE

THE BEEF VALUE OF BEER BARLEY WITH ONE TEST?

Lethbridge Research Station

Publications Mail Agreement Number 40069240

ExpEriEncE

Everything in AgriculturE

SEPT. 13-15/2016 Full details on pg 51

Turn out with LONGRANGE ® for season-long

PEACE OF MIND. 1 INJECTION • 2 PHASES • EXTENDED RELEASE COVERING UP TO 150 DAYS 1

LONGRANGE vs. Conventional Dewormers2 0.28 lbs./day more

Average Daily Gain (ADG) in lbs. 2.5

Difference ADG 0.24*

Difference ADG 0.40

1.93

2.33 1.93

Injectable

Pour-on

2 1.5

Difference ADG 0.30*

Difference ADG 0.28*

2.14

2.07 1.79

1.84

1.69

1 .5 0

Conventional Dewormers

Combinations

LONGRANGE

Entire Study

*Statistically significant (P<0.01)

Conventional Dewormers Injectable • formulations of doramectin or ivermectin Pour-on • formulations of ivermectin

1 2 †

Treatment in the spring with LONGRANGE for parasite control leads to better average daily gain (ADG). How much better? In a stocker trial with 15,000+ enrolled head, cattle treated with LONGRANGE gained an average 0.28 lbs./day more than those treated with conventional dewormers.2 That equals 28 lbs. over 100 days.†

Treat your cattle this spring. Talk to your veterinarian about LONGRANGE.

Combinations • moxidectin + fenbendazole • ivermectin + fenbendazole • doramectin + fenbendazole • doramectin + fenbendazole + ivermectin • albendazole + ivermectin

Based on the Canadian LONGRANGE label. Data on file at Merial. 28 lbs. = 12.72 Kg.

Available in 500 mL and 250 mL bottles Administer subcutaneously at 1 mL/50 kg.

Established 1938 1938 ISSN ISSN 1196-8923 1196-8923 Established Cattlemen Editorial Editorial Cattlemen Editor: Gren Winslow Winslow Editor: Gren 1666 Dublin Dublin Avenue, Avenue, Winnipeg, Winnipeg, MB MB R3H R3H 0H1 0H1 1666 (204) 944-5753 944-5753 Fax Fax (204) (204) 944-5416 944-5416 (204) Email: gren@fbcpublishing.com gren@fbcpublishing.com Email: Field Editor: Editor: Debbie Debbie Furber Furber Field Box 1168, 1168, Tisdale, Tisdale, SK SK S0E S0E 1T0 1T0 Box (306) 873-4360 Fax (306) 873-4360 Fax (306) (306) 873-4360 873-4360 Email: debbie.furber@fbcpublishing.com debbie.furber@fbcpublishing.com Email:

Contents canadian cattlemen · JUNE 2016 · Volume 79, No. 6

 R ES EA RC H

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Diastatic power measures malt quality and, it appears, feed value.

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Can we rate the beef value of beer Barley WITH one test?  g ra zing

FEATURES Cull cow transport study offers some surprises . . . . . . . . . . . . . . . . . . . 10

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

Conventional beef is more efficient, yet still high quality. . . . . . . . . . . . . . . . . . . . . . 16

Cattlemen and Canadian Cattlemen are Trade Marks of Farm Business Communications. Cattlemen is is published published monthly monthly by by Farm Farm Business Business Communications. Communications. Cattlemen Head Head office: office: Winnipeg, Winnipeg, Manitoba. Manitoba. Printed Printed by by Transcontinental Transcontinental LGMC. Cattlemen Cattlemen is is printed printed with with linseed linseed oil-based oil-based inks. inks. LGMC.

Patch burning pastures. . . . . . . . . . . . . . . . . . 18

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The feedlot audit. . . . . . . . . . . . . . . . . . . . . . . 22

Patch burning Prescribed burns come in all shapes and sizes.

Verified Beef Production . . . . . . . . . . . . . . . . 31

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Can we rate the beef value of beer barley with one test?. . . . . . . . . . . . . . 26 The real cost of fat . . . . . . . . . . . . . . . . . . . . . 28

 A N I M A L CA R E

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The editors and journalists who write, contribute and provide opinions to Canadian Cattlemen and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists, Canadian Cattlemen and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Canadian Cattlemen and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.

Be a soil farmer. . . . . . . . . . . . . . . . . . . . . . . . . 24

The feedlot audit Canadian feedlot animal care assessment.

Congratulations! To our June survey winner, Elmer Cook, Matheson, Ont. This month’s survey is on page 42. Cover Photo: Agriculture and Agri-Food Canada

Comment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Newsmakers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Our History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Research on the Record. . . . . . . . . . . . . . . . . 21 Free Market Reflections. . . . . . . . . . . . . . . . . 30 Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Prime Cuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Straight from the Hip. . . . . . . . . . . . . . . . . . . . 34 CCA Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 News Roundup. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Purely Purebred. . . . . . . . . . . . . . . . . . . . . . . . . 44 The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Market Talk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Sales and Events. . . . . . . . . . . . . . . . . . . . . . . 50 C a t t l e m e n · J U NE 2 0 1 6

 COMMENT

By Gren Winslow

We can audit for animal care

s I write this the vitriol that flooded over the industry after Earls Restaurant chain announced it would buy only Certified Humane Beef from the U.S. has started to fade from the headlines, the Blogosphere and Twitterland. Reading through the debris field of this latest battle for beef ’s reputation I have to admit I’m having a hard time deciding if anything much has changed. Certainly the entire beef industry leapt to the defence of its product with vigour when the company announced its new policy. Enough so that an obviously shocked Earls was forced to backpedal from its original position and admit that it would be delighted to purchase Alberta beef that meets the standards of the U.S. Certified Humane brand. What’s harder to find is any sign that Earls’ customers were overjoyed by this change in policy. Will its beef sales go up sufficiently to cover the cost of its campaign, and this U.S. product? The dollar alone turns it into a high-priced item for them. And if Earls’ beef sales don’t go up (and in some markets they may well go down) what does that say about the Certified Humane brand? Overall, it won’t have much influence on beef sales. We may see a slight increase in U.S. product, but every pound of Canadian beef will still find a home. We can’t forget that over half of what we sell ends up in the U.S., so it seems a bit disingenuous for us to quibble over a small increase for a branded product. The big concern, of course, is not the volumes involved, but that Earls’ campaign, like A&W’s hormone/drug-free slogan, implies all other beef is unsafe or unsound. What effect that actually has on consumers is difficult to measure. Statistics tell us Canadian per capita beef consumption is still in decline but the demand for the product is rising. Health scares may have some influence on consumption but rising demand for the product suggests otherwise. So do we fight these types of campaigns, or join them? It’s your choice, if you are a beef producer. In the end anything that increases beef consumption seems like a pretty good idea, especially if it can be sold at a higher price to cash in on our rising demand curve. When you think about it, campaigns like Earls are probably more the result of this slumping consumption trend than a cause, as people are forced to look for new ways to encourage their customers to buy more beef. Viewed in this light these campaigns offer an opportunity to anyone who is willing to pay the price to get into that supply chain. As we all know there is a cost involved in raising antibiotic- and hormone-free beef. In this issue Dr. Matt May with Feedlot Health Management Services puts it at 100 pounds per head. That’s a lot to make up in premiums to make the switch worthwhile.

C a t t l e m e n · J U NE 2 0 1 6

Humane treatment, however, is something Canadian producers can generally lay claim to and starting this month, something they can be verified for. In fact, two auditable animal care programs are now available in Canada. One is offered by the National Cattle Feeders Association. A general outline of this program appeared in our May issue, and a more detailed look at its auditing process is found in this issue. The newest one is the animal care module of the Verified Beef Program that is being launched June 15 with two other new modules devoted to biosecurity and environmental stewardship that are being incorporated into the current VBP course materials. The animal care module is tied very closely to the requirements of the new Beef Cattle Code of Practice.

he animal care module T is tied very closely to the requirements of the new Beef Cattle Code of Practice

All three are tailored to fit into a total package under the guidance of the Canadian Roundtable for Sustainable Beef which includes retailers and food-service representatives. At one time you might have expected a lot of competition between these two auditing services but today the goal is to blend them so nobody needs to have more than one auditor coming out to their place. This is one of those places where the connectivity pillar of the National Beef Strategy is starting to pay off. If you are interested in a more detailed breakdown on the plans and achievements of Canada’s National Beef Strategy in its second year of operation you should plan to take in the Canadian Beef Industry Conference August 9 to 11 at the Grey Eagle Resort just outside of Calgary. Separate reports will be presented on each of the four pillars, productivity, competitiveness, beef demand and connectivity. Plus the organization funded by the national beef checkoff will be holding its own meetings at the same venue. There are more details on the Beef Cattle Research Council session in this month’s Research on the Record column. More details are available at http://canadianbeefindustryconference.com/wordpress/. See you there. c

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 THE INDUST RY

NewsMakers Ralph Eichler was sworn in last month as Manitoba’s new agriculture minister. A one-time cattle producer who raised purebred Simmentals and a commercial herd, he also owned Prairie Ralph Eichler Farm and Ranch Supply, a livestock-handling equipment manufacturer and dealership and a Teulon auction company Ray’s Auction Service. He served as the administrator of the Interlake School Division for eight years before he was elected MLA for the Lakeside constituency in 2003. Eichler served two terms as ag critic for the Tories who were returned to the government benches in a late-April election. Other former cattlemen Midlands MLA Blaine Pedersen was named minister of infrastructure and Portage la Prairie MLA Ian Wishart is minister of education and training in the new cabinet. Lyle Stewart was returned as agriculture minister in Sask atchewan following the reelection of the Saskatchewan Party. He continues to farm and ranch with his wife Linda and son Lee at their Lyle Stewart farm in Pense. He has served as an MLA for Thunder Creek since 1999. B.C. producers in three zones elected six directors to the British Columbia Cattlemen’s Association board via mail-in ballots last month. The successful candidates were Larry Garrett, Erin Durrell, Grant Huffman, Duncan Barnett, Linda Allison and Doug Fossen. A number of other producers was elected to one of five BCCA committees that help direct the business of the association. Half of the province’s six zones hold elections each year. The executive for 201617 was to be named at the BCCA annual meeting in late May after our press date. Jolene Nobel of Manning, Alta., resigned as the Cattlemen’s Young Leader program co-ordinator last month to take on the position of extension coordinator with the Farm Jolene Nobel Sustainability Extension Working Group, formed with Alberta Growing Forward 2 money by the Alberta barley, canola, wheat and pulse grower associations. No replacement had been named at press time.

C at t l e m e n · j u n e 2 0 1 6

We were saddened to hear of the passing of Harlan Ritchie, the distinguished professor of animal science at Michigan State University in late April. In a long and distinguished career he wrote hundreds of research articles and more importantly explained the importance of his results to producers in talks, seminars and cattle-judging demonstrations. He was inducted into the Saddle and Sirloin Portrait Club in 1994. Harlan was also the original author of the Research on the Record column in this magazine. Twenty-six semi-finalists have been selected based on their online applications to complete for the available 16 spots in this year’s class in the 2016 Cattlemen’s Young Leaders Program. The final 16 will be announced on August 9 at the graduation of the 2015 CYL class. The semi-finalists are: • British Columbia: Ryan Scorgie, Kamloops • Alberta: Becky Tees, Cochrane; Cale Toews, Beaverlodge; Grayden Kay, Lloydminster; Jessica Sperber, Rimbey; Jesse Williams, Hanna; Kaleen Harris, Lloydminster; Katie Songer, Sylvan Lake; Luke Marshall, Innisfail; Madeleine Knodel, Seven Persons, Mel Hermanson, Hussar; Morgan Klaiber, Seven Persons; Nicole Viste, Hanna • Saskatchewan: Kurtis Reid, Hepburn; Kylie McRae, Kisbey; Mona Howe, Leader; Quinn Anderson Folk, Fir Mountain; Roxanne Olynyk, Regina • Manitoba: Katelyn Stehr, Swan River; Kristy-Layne Carr, Marchand; Wilco van Meij, Brandon • Ontario: Chloe Gresel, Erin; Jason Hurst, Guelph; Melissa Hurst, Durham. Michael Fleury of Saskatoon Livestock Sales was inducted into the Livestock Markets Association of Canada’s Hall of Fame during the group’s annual meeting in Grand Bend, Michael Fleury Ont., last month. Ryan Hurlburt of Saskatoon Livestock Sales was named the LMAC 2016 autioneering champion. Reserve champion honours went to Kirk Goldsmith, Dryland Cattle Trading Corp, Veteran, Alta.; Jordie Waters, Foothills Auction Inc., Stavely, Alta. was declared most-improved auctioneer; Kevin McArter of Brussels Livestock received the Jim Raffan Memorial buckle as the most congenial auctioneer and Ryan Konynenbelt of Southern Alberta Livestock Exchange was the rookie of the year.

The Canadian Angus Assoc iation has honoured Cowtown Livestock Exchange Inc. of Maple Creek, Sask., with its Auction Market of the Year Award. Manager Tyler Cronkhite accepted Tyler Cronkhite the award in a presentation at the Livestock Market Association of Canada annual convention. The Cowtown facilities provide a sales capacity of 4,000 head and market more than 50,000 head per year. Errol Halkai has officially been named executive director of the Canadian Federation of Agriculture (CFA) after serving in the role as “acting” executive director since 2015. He Errol Halkai is a former general manager of the Canadian Broiler Hatching Egg Marketing Agency who joined the CFA in 2009 as an international trade consultant. He replaces Brigid Rivoire who led the CFA since 2001 and has retired for medical reasons. Dr. Leigh Rosengren has been appointed to the national issues committee of the Canadian Veterinary Medical Association. She holds a DVM and PhD in epidemiolDr. Leigh Rosengren ogy from the Western College of Veterinary Medicine. In 2007 she established Rosengren Epidemiology Consulting Ltd. to help address infectious disease and food safety challenges for the livestock industry. She and her husband run a grain and cow-calf operation near Midale, Sask. The federal Agricultural Youth Green Jobs Initiative will help fund internships for post-secondary graduates working in the agriculture industry. Funding is available through two streams: Green Farms Stream: Farm operators could receive up to $10,000 per intern to implement projects that are environmentally beneficial. Green Internships Stream: Employers in the agricultural sector but not directly on farm could receive up to $16,000 per intern to undertake environmental activities, services or research that will benefit the agriculture sector. c www.canadiancattlemen.ca

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 our histo ry

Ottawa Letter By Senator F.W. Gershaw Canadian Cattlemen, February 1950

esidents of Medicine Hat may remember Mr. F.F. Fatt who relates the following story of how fires were fought in the early days. “Our poor little town lay at the mercy of the fire fiend. What could we do? Our only salvation lay with the CPR and Mike Leonard. The CPR men were up and around all night and could give an alarm on the roundhouse siren. Mike Leonard, a baker, was up most of the night making bread and so in the watches of the night he would be the first to notice a blaze reflected in the sky. “When this happened, as it did more than once, Mike would take his cornet in the middle of the road and blow the alarm. It wakened us up all right, I can tell you, and each one piled into his clothes and hiked for the fire. “Once, Mike gave the alarm because Hugh McWhirter’s house was on fire. Away we rushed to help. Mike was among the first on the scene and I can yet see his disgust as he staggered from the burning house with the first piece of furniture he could reach and saw by the light of the blaze that he had rescued a large picture of King William crossing the Boyne. McWhirter was Grand Master of the Orange Lodge and Mike was a very devout Roman Catholic.” A Ranching Experience — Ranching has always been an extremely risky business but perhaps the most tragic losses were made by the early British investors in the cattle business. The records show that the winter of 1883 was a long and bitterly cold winter. The losses sustained by those who had cattle on the open range were very severe. In the springtime in many coulees there were heaps of dead bodies and Indians made wages by skinning the animals for 25 cents each. Of the 12,000 cattle placed on the Cochrane Ranch a scant 4,000 remained alive till spring. In 1885 the Cochrane cattle were moved to the Waterton Lake district. The snow kept falling that year until it was six feet deep in places. There were no chinooks and even the best rustlers among the cattle could not get feed. The cattle finally crowded to the edge of the lakes browsing the willows to stubs and bawling constantly in their hunger. A loss of the entire herd threatened. Frank Strong offered to save the cattle for

C at t l e m e n · j u n e 2 0 1 6

$1,000. His offer was accepted and he rounded up about 500 cayuses. He hired a few experienced riders and without delay, driving the tough ponies before them, they struck out through the deep snow. Urged on by whip and spur the hardy little animals floundered for two days, cutting a wide swathe in the crusted snow. They then reached the lakes and imprisoned starving herds. Strong at once turned his band homeward and they went back at a gallop, reaching the starting point in eight hours. Right behind them came the great herd of bawling steers. They came at a fast trot as they seemed to know that open prairie and food was ahead. In 12 hours thousands of Cochrane cattle were feeding the cured grass of the Indian reserve. The Buffalo — In 1754 Anthony Henday, who was the first man to write any records spent some months in the country drained by the S. Saskatchewan River. He saw great herds of buffalo at that time. In the springtime the ground would be almost covered with buffalo as far as the eye could see. By 1880 the buffalo of the plains were almost extinct. Thousands had been killed by Indians and traders. Thousands had perished by breaking through the ice in early winters. Thousands were chased over cut banks and left to their terrible fate and others died of starvation as blizzard succeeded blizzard and the snow became deeper and deeper. Modern weapons completed the destruction of these great herds. The records show that at one time the only “plains” buffalo were a small herd in Montana. The owner offered them to the U.S. Government but could not make a sale. Hon. Frank Oliver advised the Canadian Government to buy the herd. Sir Wilfred Laurier approved, saying in his eloquent way, “In so far as it is in the power of man the buffalo shall not perish from the earth.” The herd was purchased and taken to Wainwright Park in Alberta and it rapidly increased in numbers. There were still some wood buffalo in their wild natural state away north in the Wood Mountain area. It was the last feeding ground of buffalo not in captivity and when the natural pasture at Wainwright was becoming exhausted in 1925 about 2,000 of the young healthy buffalo were taken to the Wood Buffalo Park,

west of Fort Smith. They went by train to Waterways. They were there unloaded, fed, watered and given two days’ rest. Col. J.K. Cornwall, then in charge, loaded them on barges and towed by steamer boats, they slowly reached their destination. Buffalo were moved north each year from 1925 to 1928 when over 6,000 had been taken from the Wainwright Park. Many of those left were old and unhealthy and when the park was required in 1942 for military purposes all the remaining buffalo were disposed of. Fort Whoop-Up — In the late ’60s, traders from Ft. Benton crossed into Canada and built Fort Whoop-Up in Southern Alberta. This fort was the headquarters for the whisky traders and wild men of the times. Rev. John McDougall on one occasion went into the fort to inquire about fording the river. He was dismounting when he was seized and a loud “How do pardner” sounded in his ears. Turning he saw a fellow far advanced in liquor who jerked him across the square and up to the counter of the bar. This bar was made of two huge logs, one on top of the other with the upper side of the top log faced smooth. The new friend called for drinks and the bartender put two tin cups, all battered and rusty, on the log and poured liquor into them. The minister would not drink and the other cursed and abused him shamefully but finally took the two drinks himself. A big fellow then ran up to the group with a long knife in his hand. He said he would like a fight as things were getting too quiet. He had been on a prolonged drunk and looked wild, haggard, bleary eyed and swollen faced. He noticed the stranger and made himself very offensive in a drunken manner. Suddenly it came out that the stranger was Rev. John McDougall. The wild man at once changed his conduct. He profusely apologized. He was very humble and ashamed. Nothing now was too good for the minister. He was given the best meat that could be obtained and before he left the fort he performed a Christian marriage ceremony and preached a sermon. For more of the past from pages of our magazine see the History Section at www. canadiancattlemen.ca. c

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INNOVATION FILE:

What if you could give your calves long lasting, effective pain reliefâ€Ś that was also affordable? Veterinarians and producers asked for a pain medication that was both affordable* and long lasting. Solvet went a step further. New Meloxicam Oral Suspension delivers a minimum of 56 hours relief from pain and inflammation when castrating. Its oral suspension formulation also makes it easy to administer. Itâ€™s just one example of Innovation By Request. Talk to your Veterinarian about Meloxicam Oral Suspension for pain prevention.

Solvet researches, develops and manufactures products to meet the needs of veterinarians and producers from their headquarters in Calgary, Alberta. * Calculated as days of therapy per label claim at product list price. Solvet is a trademark of Alberta Veterinary Laboratories Ltd.

5370-Meloxicam-Prod-Ad-CM-UPDATES-FINAL.indd 1

2016-05-12 4:43 PM

 Transpo rt

By Debbie Furber

Cull cow transport study offers some surprises

recently published Alberta study on the transport of cull cows during winter upturns some previous findings on causes of bruising, as well as common industry beliefs about boarding over some of the ventilation holes in stock trailers during cold-weather travel. The study gives the first indication that issues in cull-cow transport may be related to pre-transport animal conditions, the compartment in which the cows travel, and management at unloading, says author Christy Goldhawk, who carried out the research for her doctoral thesis under the supervision of Dr. Karen Schwartzkopf-Genswein, beef welfare and behaviour research scientist at Agriculture Canada’s Lethbridge Research Centre in collaboration with Dr. Ed Pajor at the University of Calgary and Dr. Trever Crowe at the University of Saskatchewan. The team’s objectives were to compare the effectiveness of assessment methods developed by others to identify pre- and post-transport animal welfare issues, as well as to assess

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temperature and humidity conditions during winter transport and their relationship to factors such as location within the trailer, space allowance and the use of boarding. The study involved 17 liner loads of cull commercial beef cows totalling 673 cows, travelling from central gathering points across the Prairies to a single Alberta packing plant from January 24 to April 30, 2013. Travel time ranged from 12 hours, nine minutes, to 17 hours, 50 minutes, averaging 13 hours, 47 minutes. Past studies suggested the high incidence of bruising on cull-cow carcasses is related to handling, space allocation, poor body condition scores, and cow temperament being on the nervous side. The new study found that none of those factors were statistically associated with the probability of bruising during transit. Nearly all of the cows (91.6 per cent) were in prime body condition, with 6.6 per cent on the fat side and 1.7 per cent scored as thin. Almost all of the cows (97 per cent) were

Dr. Karen Schwartzkopf-Genswein

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scored as having calm temperaments when the calm and restless categories were combined. Handlers gauged each cow’s temperament the first time it entered the holding pen at the gathering station by the use of a line on the ground 15 centimetres long divided into three-centimetre sections corresponding with calm, restless, nervous, flighty and aggressive temperament. Animals that passed by the handler standing up to 2.9 centimetres from the gate were rated as calm and so on down the line out to 15 centimetres. This approach provides a quick way to score cattle temperament in a commercial setting. Handlers were scored as well by a simple “yes” or “no” response for such actions as shouting, banging on the trailer, and driving aids coming in contact with any part of the animal during loading and unloading. All loads complied with the transportation code of practice recommendation of 1.5 square metres per animal for group-shipped cattle of this weight. The two factors statistically associated with bruising in this study were the compartment in which cows travelled and the wait time before unloading at the packing plant. The odds of severe bruising on cows shipped in the doghouse compartment were 2.2 times greater than cows in the deck, 3.0 times greater than cows in the back, 3.7 times greater than cows in the belly and 3.8 times greater than cows in the nose. The doghouse is to the right of the internal ramp on the upper deck when facing the back of the trailer. The L-shaped entry to the doghouse might be to blame for the bruising because cattle have to make two 90-degree turns to enter and exit it. This, coupled with the compact size of the doghouse, makes it difficult for cattle to maneuver without rubbing against the sides of the trailer. The odds of severe bruising was 1.18 times greater when the wait time to unload at the packing plant dragged on from one to 1.5 hours. Some degree of bruising was found on 84.4 per cent of the carcasses. Bruising on the round was 2.8 times greater than on the back rib area, 3.6 times greater than on the back loin, 5.6 times greater than on the left loin and 8.2 times greater than on the right loin. Ninety carcasses had bruises classified as severe in more than one of the six areas and 111 had severe bruising in at least one area. The overall 84.4 per cent of carcasses with bruising is similar to the 79 per cent finding for cull cows in Canada’s 1999 beef quality audit, leading to the assumption in both reports that cull cows may be a highrisk group for bruising to start with because many are sourced through auction markets and have to travel long distances to packing plants.

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Of the three subjective scoring systems evaluated, only the North American Meat Institute (NAMI) audit developed to score cattle and handlers at unloading proved to be fairly consistent for pre- and post-transport use. Cows were evaluated in the pens within 24 hours of loading for temperament, body condition, injuries and other health concerns. Behaviour of animals on the ramp entering/exiting the trailer and actions of the handlers were scored at loading and unloading. All cows were scored again after unloading. Load scores for falls, prod use and the AMI compromised animal score at loading and unloading showed that of the 12 loads (483 cows) assessed for animal condition before loading, two loads were rated “not acceptable” and four loads were rated “serious” Continued on page 12

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because of at least one cow on each load with an injury (torn, bleeding, puss-filled teats, lump on jaw, eye, ear). One load that had scored “excellent” at loading dropped to “not acceptable” at unloading because one animal had a rubbed tail-head injury. One of the loads went from “not acceptable” to “serious” because of a downer cow. At unloading, 10 of the 12 loads had cows with injuries or poor udder conditions that weren’t observed before the trip. Increases in poor and/or torn udders were seen on one to five animals in each of five loads. The load with the most increase in the number of cows with poor udder conditions also had the greatest number of other injuries, most commonly rub-type injuries. Only one load had no lame cows at loading and the rest had up to four. An increase in lameness was noted in six loads at unloading. Three had no change and, unexpectedly, three had fewer lame cows. The decline in lameness was likely due to differences in floor conditions, weather and handling, all of which can influence the gait of the cattle and subjective scoring of the gait. There were three downers on separate loads that had to be euthanized on the trucks at the end of the trip. One had a leg trapped in a floor drain in the doghouse. The others were in the nose and belly compartments, but post-mortems weren’t done to determine whether there were contributing pre-existing conditions. Loading densities in the belly and doghouse compartments where the downers were found were 1.4 and 1.2 square metres per animal. To board or not to board

This new study is also the first to indicate that boarding ventilation holes may increase ventilation within trailers during travel at highway speeds even though it does have potential to increase temperature and humidity when trailers are stationary. Alternating boarding, grouped-alternating boarding and open patterns were evaluated to determine their effect on in-trailer temperature and humidity relative to each other and to outside conditions. Boarding was used on 15 of the 17 loads at the discretion of the drivers. Data loggers secured in strategic locations on the ceiling of the trailers (except the nose compartment because of the low ceiling height) and on the outside of the trailer recorded inside and outside temperature and

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Researcher Christy Goldhawk with one of the data loggers used to record conditions in the trailers.

humidity every minute. The whereabouts and travel speed of the liners was tracked by GPS. Drivers provided supporting records including the number of cattle in each compartment. Data from three time periods were used: the first 30 minutes of travel when temperature and humidity isn’t likely to have stabilized, another 30 minutes while travelling at 80 to 110 kilometres per hour along the same highway when steady conditions are most likely, and the stationary period before unloading at the plant. Outside temperatures ranged from -33 C to 20 C, averaging -4.55 +/- 8.59. When parked at the plant, the average temperature inside the trailers was 4.33 C (open), 4.56 C (alternating) and 6.54 C (grouped alternating) higher than the average outside temperature. During the first 30 minutes of travel, the average temperature inside the trailers was 2.79 C (open), 2.91 C (alternating) and 3.51 C (grouped-alternating) higher than the average outside temperature. Travelling at highway speed, the average temperature inside the trailers was 2.76 C (open), 1.57 C (alternating), and 0.61 C (grouped-alternating) higher than the average outside temperature. The fact that inside temperatures didn’t increase much at all with boarding while travelling at highway speeds was a surprise. The data suggests boarding channels air flow into the trailer through a reduced number of ventilation holes, thereby increasing ventila-

tion. In cold weather this increased ventilation reduced in-trailer temperature and humidity compared to trailers without boarding. Another recent Alberta survey indicated cattle are more likely to die when outside temperatures go below 0 C midway through the trip. Modelling predicted a sharp increase in the probability of mortality once midpoint temperatures drop to -15 C. Given that minimum temperatures during transport in this new published study were well below 0 C and closer to the -15 C mark, and that no cattle died on the way to the packing plant, the thinking is that each animal’s home environment may influence its ability to cope with cold and transportation during cold weather. Contrary to the popular belief that boarding increases humidity inside the trailer, contributing to the onset of disease — especially in loads of young calves — this study found that humidity inside boarded trailers was on a par with outside humidity while the liner was travelling. The average outdoor humidity ratio was 2.2 +/- 0.9 grams of water per kilogram of dry air and ranged from 0.1 to 5.9 g water/ kg dry air. During the first 30 minutes of travel, the average humidity ratio inside open trailers was 1.65 g water/kg dry air higher than average outside humidity ratio, whereas there wasn’t an inside-outside difference for trailers with boarding. At steady highway speed, the average humidity increased by 0.93 g water/kg

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transport

dry air inside the open trailers, again with no inside-outside difference for the other boarding patterns. While parked at the plant, the groupedalternating pattern created the greatest difference with inside humidity averaging 2.05 g water/kg dry air higher than the average outside humidity ratio. Average humidity inside the trailers with alternate boarding was 1.21 higher than outside humidity, which was similar to the open pattern at 1.10. These new findings leave researchers with several gaps to fill including validating methods for accurately recording how wind speed and direction might affect the microclimate inside a loaded trailer, developing lameness and temperament assess-

ments for use in commercial settings, establishing a standard system for pre-transport assessment of cull cows related to welfare outcomes following transport, and understanding the risk of increased bruising in cattle travelling in the doghouse. For producers and haulers looking to give their cattle a better ride, SchwartzkopfGenswein advises timely culling and vigilance regarding animal-friendly transport practices because even the best personnel and conditions canâ€™t compensate for poor loading decisions. Extra care should be taken with cull cows, she adds. Provide fresh, clean bedding, aim for transport times under 30 hours at temperatures lower than 30 C and higher than

-15 C, and keep loading densities between 0.75 and 1.75 square metres per animal, depending on their weights. Her previous studies indicate there is a tendency to under-load cows in the doghouse and nose compartments, thereby increasing the chance of injury. Both underloading and overloading increased the incidence of animals dying or becoming nonambulatory or lame. She also found cull cows have a greater probability of becoming lame, non-ambulatory or dying during a long haul (more than 400 km) compared to other cattle. Even more issues show up on trips that exceed 30 hours at temperatures greater than 30 C and lower than -15 C. c

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 Nutritio n

By John McKinnon

‘I Am Not Eating There Anymore!’

arly May was an interesting time, particularly with respect to the pride of the Canadian Beef Industry. I am referring to industry reaction to the announcement by the Earls Restaurant chain to not source Canadian beef for its menu, but rather to look to American beef raised under the banner of “Certified Humane.” Predictably, this announcement resulted in a rallying cry across the country highlighting the virtues of Canadian beef and our production practices and calls for a boycott of the restaurant chain. To the credit of those who raised their voices, the decision was reversed. While many may consider this a victory, the question I pose in this article is did we win the war or just the battle? I suggest that we won the battle, and that it is just a matter of time before another Earls or A&W comes along and questions through its marketing practices how Canadian beef producers conduct business. The elephant in the room is how will beef producers react the next time and the time after that, particularly if the next company is a really big player like Walmart or McDonald’s? To look at this issue more closely, let’s look at the decision by Earls’ executives. While not privy to corporate thinking, it appears to me that this business saw an opportunity to fill a niche that it felt consumers were demanding, specifically for beef that is certified humane. Emphasis on the word certified! They were right in stating that they would have to look long and hard in Canada to find a consistent source of certified humanely produced beef. Not to say we do not humanely treat our animals; anyone who knows anything about the industry knows that such a claim would be totally removed from the truth! Unfortunately most consumers are not as well tied into agricultural practices and increasingly are looking for more than verbal assurances that their food is safe, that animals are treated humanely and raised in an environmentally sustainable manner! When I look at the website of the American company that Earls’ beef was to be sourced from, it offers a highquality product that among its long list of brand requirements is a statement on humane treatment of animals. This company goes the additional step of having its production practices certified under standards of Humane Farm Animal Care (HFAC,) which is a non-profit charity. This organization has created a long list of standards that producers must adhere to in order to quality for certification. While one may not agree with everything listed, for the most part they reflect the common-sense values that the vast majority of Canadian beef producers

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uses when raising beef cattle and reflect many of the values that leaders of various beef organizations are trying to instil in Canada. Consider for example the Canadian Code of Practice for Care and Handling of Beef Cattle released in 2013 through the National Farm Animal Care Council and the Verified Beef Production Program offered across the country through various provincial and national cattle organizations. Both lay out guiding principles for producing beef in a safe and humane fashion. They cover virtually the same areas of animal care and production that the American HFAC standards cover. The difference is that those American producers enrolled under HFAC are “certified,” while in Canada participation to a large extent is voluntary. Producers in VBP are verified and audited, however, the number of participating producers at this point is limited and sourcing a consistent supply of beef under this program from birth to slaughter would be challenging. So how big an issue are we facing? Are calls for beef to be raised in a humane, environmentally sustainable manner a passing fad or the new reality? Will we see increasing demand by consumers (backed up through their spending practices) for certified food production practices? My gut feeling is that we are at just at the tip of the iceberg in this regard and that these programs will become increasingly prevalent with time. Accepting the status quo with regards to food production will no longer cut it with a large segment of society, particularly young people. That is why initiatives such as the Canadian Round table on Sustainable Beef are so important to the future of this industry. This multi-stakeholder initiative is working to develop a framework that will allow all players in the beef value chain (i.e. producers, processors, retailers) to produce and source beef that is verified as “sustainable.” Not only will this initiative define sustainable beef production with input from all stakeholders, it will develop for each sector of industry, sustainability production indicators that can be audited and verified. This vision which is available on the roundtable’s website is to have Canadian beef recognized globally as economically viable, environmentally sound and socially responsible. Attaining this vision will require widespread industry buy-in! The question is — are you up for the challenge? Of course the alternative the next time a major chain questions how Canadian beef is produced is to respond, “I am not eating there anymore!” However, in the big picture, I am not sure such a response does much to help the future of the industry. c

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

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By Lee Hart

Conventional beef is more efficient, yet still high quality Study shows 100 more pounds of beef per head compared to natural and organic production systems Dr. Matt May, Feedlot Health Management Service, Okotoks, Alta.

onventional beef production doesn’t take a back seat to any of the more trendy natural or organic beef systems in terms of producing a safe, healthy, flavourful, high-quality meat, says an Alberta beef researcher. The question really comes down to how much the consumer is willing to pay. Dr. Matt May, with Feedlot Health Management Services in Okotoks, Alta., says a study he conducted a couple of years ago shows animal and human health, food safety and quality standards aren’t compromised in conventional beef production. Any differences between animals raised with the proper rates of feed additives and growth implants would be negligible to consumers. However, the big difference he says is in the improved performance of conventional beef over natural and organic systems. His study with nearly 1,000 steers showed about a 100-pound per head higher carcass weight among conventional steers and similarly with about 1,000 heifers about 65 pounds of improved gain per head. “A percentage of consumers are asking for these production alternatives and it is important that consumers do have a choice,” says May, a beef production specialist, speaking to cattle feeders and consultants at a recent meeting in Lethbridge. “As an industry we just need to be glad they are eating beef. But we also need to be aware

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that if we are producing for these specialized markets there is a cost. Our study showed while conventionally produced cattle do eat more, there is also a huge improvement in average daily gain and carcass weight — 100 pounds per head is significant.” May says it is important the beef industry “gets its story out to consumers” demonstrating that conventional beef is produced with healthy, safe and sustainable production practices. There is a small, but vocal element critical of the conventional beef production system and it would be a significant cost to the industry and ultimately have an adverse effect on society, if very efficient beef production technology was lost. One side of May’s study, funded by the Canadian Agricultural Adaption Program (CAAP), along with industry supporters, evaluated 960 steers. He started with 900-weight animals and over a 100-day feeding program took them through to finishing. The steers were divided into four different feeding groups. All groups received a basic ration of 90.5 per cent barley, 7.5 per cent silage and 1.9 per cent supplement. All groups also received a vitamin and mineral premix. But then they were divided into four different programs in terms of feed additives. Along with the basic ration, the “Conventional group” also received Rumensin for improved feed efficiency and parasite

control, Tylan, an antibiotic, Optaflexx, a feed additive to increase growth and feed efficiency and Revalor-200 a growth promoting implant. May also had an “R/T group.” Their ration and mineral program also included the Revalor 200 implant and Tylan antibiotic. The third group, which May referred to as the “Oleo” or organic group received the basic ration, vitamins and minerals, along with a natural product called Oleobiotec Ruminant — described as a complex blend of plant extracts and essential oils. It is designed to improve feed efficiency, prevent metabolic disorders and regulate digestive microflora. The fourth group was the “Natural” or control group which received only the basic ration, along with vitamins and minerals. And the results… overall the Conventional group had the best performance. The conventional steers had an average slaughter weight of 1,451 pounds, while the other three groups were comparable in the 1,355to 1,364-pound weight range. The Conventional steers had an average weight gain of 521 pounds compared to the other three groups in the 420- to 435-pound weight range. The Conventional group had an average 850-pound carcass weight, while the other three groups ranged from 785 to 793 pounds. There wasn’t a huge or significant dif-

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ference in dressing percentage although the Conventional group was the highest at 58.63 per cent, the Oleo group was next at 58.24 and the R/T and Natural groups were at 58 per cent. Looking at carcass characteristics, May says there was no real statistical difference — all groups yielded and graded much the same. However, he did note while the Conventional group had the highest percentage of YG1 carcasses, the other three groups had higher rates of YG2 and YG3 carcasses. On the quality side, the R/T, Oleo and Natural groups had a slightly higher per cent of AAA (Choice) grades. The Conventional group had the highest percentage of AA (Select) grades. May says the yield and quality differences make sense since the Conventional group was fed for lean meat production, while the other three groups produced more fat which influenced marbling. He says the differences were notable but not statistically significant. “What we saw among the Conventional steers was nearly an extra 100 pounds of meat per head,” says May. “While they did

consume more feed they also had nearly a 30 per cent improved feed-to-gain ratio and nearly 21 per cent higher average daily gain.” On the other side of the project, there were similar results among the 900 yearling heifers fed the same basic ration. There were only three feed groups among the heifers — a Conventional group, a Natural group and an Oleo group. The Conventional group received the full slate of feed technology, the organic group only the Oleobiotech product and the Natural group received only the vitamin and mineral premix. The heifers were all about 1,000 pounds at the start of the study. The Conventional heifer group had the highest slaughter weight of 1,381 pounds on average, the Oleo group came in at 1,282 and the Natural group at 1,279 pounds. The Conventional heifers gained 378 pounds, while the Oleo and Natural groups were 279 and 275 pounds, respectively. Overall the Conventional heifers had about a 65-pound weight increase over the other two groups. The yield and carcass quality results showed similar results as was found among the steers with similar, but not significant variances.

May says the research tells him that all systems work, but the conventional beef production system is the most efficient. He points to the results of consumer surveys which show when it comes to beef, 95 per cent of consumers are first interested in flavour, next in cost and third in nutrition. He also pointed to his own personal in-store comparison-shopping where one large retailer had organic ground beef priced at $17 for a 1.8-kilogram package, while the next display case had conventional ground beef for $7.59. “Consumers should have a choice when it comes to their food,” says May. “But they also need to know that conventional meat products are a safe and healthy choice. From the producer perspective, if we are producing for these specialized markets we have to realize that the cost of production is higher. In terms of the long-term environmental and economic sustainability of the beef industry, it is important that we are able to use the range of production technology that is available.” c Lee Hart is a field editor for Grainews based in Calgary and contributor to Canadian Cattlemen Magazine.

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By Debbie Furber

pATCH BURNING PASTUREs Prescribed burns come in all shapes and sizes

ildfires have two faces: the nemesis of mankind since settlement, and Mother Natureâ€™s way of renewing aging, infested grasslands and forests. The unintended consequence of widespread suppression of wildfires coupled with the trend toward grazing systems that promote uniformity has been the loss of plant and animal diversity within native grassland ecosystems, according to rangeland ecologists at several universities across the U.S. Great Plains. Historical accounts suggest native grasslands burned frequently. Tall-prairie grasslands, for instance, burned every three to five years. The greening after a fire attracted wildlife that intensively grazed the burnt area for a year or so before moving on to newer burn areas. This gave the burnt-and-grazed

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area ample time to rest, regrow and build up enough mature forage and litter to carry the next fire and begin a new cycle of succession. The result was a patchy mosaic of diverse habitats for grassland species that followed the succession of vegetation from burn patch to burn patch across the landscape. Grasses were the first to reappear and grazing kept growth in check to give forbs a chance to take hold beginning about a year later. As grazing pressure declined, grass species began to outcompete the forbs so that grasses dominated by years three and four after a fire. Each type of habitat supports certain wildlife species and some species need more than one type of habitat throughout their life-cycles. Researchers have been developing this historic pattern of pyric herbivory (firedriven grazing) into a grazing management

Cows naturally follow fire to graze the high-quality forage in freshly burnt patches, without the need to gather or move them in order to control grazing

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grazing

system called patch-burn grazing, says Dr. Sonja Leverkus of Shifting Mosaics Consulting at Fort Nelson, B.C., who spoke on the concept at the British Columbia Cattlemen’s Association’s (BCCA) technologytransfer event at Fort St. John. It’s simple because cows naturally follow fire to graze the high-quality forage in freshly burnt patches, and it’s inexpensive because there’s no need to put up crossfences, develop water sources for paddocks, or gather and move cattle to control grazing, Leverkus explains. U.S. studies indicate attraction to freshly burnt patches can override constraints such as topography and distance to water or shade. In one project on semi-arid rangeland, cattle selected riparian areas five times less often in a patch-burn grazing system than in traditionally managed pastures. Traditional management in most areas of the U.S. Great Plains is continuous grazing without burning, or after burning the entire pasture in spring. Complete burns carry the risk of severely limiting forage quantity early in the season and in a drought year. Overall, cows on tall-grass prairie spent 75 per cent of their time grazing patches the year of burning. The finding that cattle on mixedgrass prairie in arid settings spent only 31 per cent of their time on burn patches in the burn year, suggests the attraction of burnt areas may be greater in regions with higher annual precipitation because of faster regrowth. Although the initial intent of patch-burn grazing was to promote biodiversity on native grassland range, a few of the studies did assess its effect on cattle. The results

show it didn’t hinder cow body condition scores, weaning weights or yearling weights and had the potential to benefit the cattle and the bottom line, compared to traditional grazing management practices. Dr. Derek Scasta of the department of ecosystem science and management at the University of Wyoming says the high-protein regrowth in the first year after a burn and the rest periods offered to earlier burn patches provided by patch burning can sustain and even improve cattle gains. It can also mitigate the negative effects of drought, reduce parasite pressure and lessen the need for chemical or mechanical weed and brush control and nitrogen fertilizer, plus provide a management alternative to cross-fencing. Patch-Burning Basics

Leverkus is a certified Wildland Fire Practitioner and member of a North American team that helps ranchers and land managers in the U.S. and Canada plan and implement prescribed burns on grassland and forested ranges. The rotation, timing and size of burn patches within a pasture will vary according to your conservation and grazing goals plus the productivity of the pasture. The system has worked well in areas as small as 100 acres and as large as 20,000 acres. The fundamentals involve knowing how to establish effective natural and man-made fireguards and how weather conditions support effective and safe burning. Stocking rate is the initial consideration when deciding how many patches to establish. A medium stocking rate based on the

carrying capacity of the entire pasture is generally recommended. Too high a stocking rate will force animals to graze back over previously burned patches, reducing the fuel needed to carry a fire in the scheduled year. Too low, and the grass in the burnt patch will get ahead of the animals in the first year. A three-year burn-return interval has been effective in areas with good moisture and decent growing conditions, whereas a four-year interval seems best in more arid regions, so the litter, or fuel as they call it, has time to rebuild sufficiently. “There are a lot of questions about liability if a fire does get out of control, but I tell ranchers that they don’t have to feel alone. Working with someone who can help write a prescription can become part of the liability protection by providing documentation that supports your due diligence and proper management of fire,” she says. Fuel load, wind speed, wind direction, temperature, humidity, advantageous points to light up, and documentation are all part of the proper prescription. In Oklahoma and Texas, ranchers and landowners have formed prescribed fire associations with members supplying labour and equipment for each other. Some associations purchase group liability insurance packages that cover each member. An online prescribed fire-training course is available through the Oklahoma Prescribed Fire Council. Leverkus organized her own prescribedContinued on page 20

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A three-year burn-return interval has been effective in areas with good moisture. Continued from page 19

fire school for ranchers last year and was hoping to put it on again this year. “One thing is for certain, there will always be fire on the land across Canada and there will always be an opportunity to be proactive about it.” Burning in B.C.

Fire is quite widely used by northern and eastern B.C. ranchers, primarily to boost forage quality and beat back the encroaching aspen and coniferous forest. The use of patch-burn grazing as a conservation strategy may also gain some new support as the BCCA explores the potential for paid ecosystem goods and services. BCCA vice-president Brian McKersie of Canal Flats says BCCA fully supports the practice of prescribed burns to rejuvenate meadows and control brush but it requires a real public relations effort to keep everyone onside. The benefits go beyond the ranchers themselves. Wildlife will share in the renewed meadows while the suppression of insect-borne infestations benefits the forest itself. Prescribed burns can be used to open up new areas for recreational and tourism while reducing the threat of wildfires by burning up excess fuel in the meadowlands. It can also have a bit of a double-edged effect when it’s uncontrolled, as McKersie

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PHOTO CREDIT: Sonja Leverkus

learned firsthand after a major forest fire burned across his Crown-land range in 1985. “The benefit was unbelievable. It took out the underbrush and there was more grass, but now we have real in-growth of pine stands,” he explains. The fire opened pinecones, releasing seeds that within 10 years formed a mat of small trees that is smothering the grass. The trees are too crowded and too small to ever be good for timber so it’s not worth thinning them out. Recent plans for a prescribed burn to clean up this area only got as far as setting up fireguards when the weather turned sour. Then a herd of elk moved in and the burn was postponed for fear that there wouldn’t be enough regrowth to sustain them over the winter In the end they cut and pushed up some of the thickets into a pile and burned them. It worked, but was a lot more time consuming and expensive than a prescribed burn. Way up at Fort St. John on private rangeland near Mile 81 on the Alaskan Highway, Jack Thiessen’s family have been using fire to clear land, and renew meadows and hillsides since they moved there from Swift Current, Sask., in 1965. “As kids we would ride the valleys up the creeks first thing in spring lighting the fires every two to three years. The fires burned into the bush a few yards before dying out and in that way, little by little we opened

more land for grass. A lot of land in this area was cleared this way and burning is still commonly used by ranchers because getting rid of trees maintains good-quality grass,” Thiessen explains. He rotates his burns so he covers the whole ranch every five or six years. “We store grass in the areas we want to burn so there will be enough fuel to get a good burn. There’s only a one- to two-week window to burn in spring when the grass is dry enough on top and it’s moist enough on the ground and in the bush. We want to leave about two inches of stubble because we don’t want to burn the grass roots or topsoil. New grass pops up quickly because the soil is moist and warms up quickly,” he says. During the past two springs he burned 2,500 acres and will add another 400 this spring to free grassland where he logged aspen this winter. Typically there isn’t much grass at all the first year after logging, but by the third year the area has good grass. By the fourth year, the aspen suckers will be about two feet tall and by year five the grass has such well established roots it can tolerate a burn to remove the suckers. Years six, seven and eight provide really good grazing before the suckers start to come back, indicating it’s time to burn again. For more information contact Leverkus at 1-250-321-7069 or visit www.fireecology@ okstate.edu and www.trench-er.com. c

www.canadiancattlemen.ca

 researc h o n t h e r eco r d

By Reynold Bergen

Bov-Innovation: Putting Theory into Practice

here is no shortage of beef industry conferences, workshops and meetings for Canadian beef producers to attend throughout the year. These have included the Canfax forum, the Canada Beef forum, Cattlemen’s Young Leaders forums, industry golf tournaments, tours, national, provincial and breed association meetings, the International Livestock Congress, and many more. Although they are valuable events, it is hard for producers to attend every event they might wish to. It can also be frustrating when similar speakers or themes get addressed at several different meetings, and busy producers take extra time away from their operations to hear the same presentations multiple times. The last thing anyone needs is to make time for yet another industry event. So you’ll be pleased to learn that the first-ever Canadian Beef Industry Conference will be held in Calgary on August 9 to 12. Rather than being yet another event for busy producers to try to plan around, this event was created in an effort to hold several of the meetings listed above at the same time, in the same place. This should be more convenient for both speakers and attendees. The Canadian Beef Industry Conference will also provide an opportunity for producers to meet some of the researchers who do the work I write about in this column. What we’re planning: The Beef Cattle Research Council will present Bov-Innovation on the afternoon of Wednesday, August 10. This half-day will consist of joint presentations from research experts paired with leading Canadian producers. The researcher will present a particular concept, and the producer will explain how they made it work in their situation. There will be six of these short, exciting and interactive sessions focused on improving productivity and profitability in cow-calf and cattle-feeding operations through advancements in animal health and welfare, forage productivity and genomics. The main objective of each session is to help producers to make more informed decisions about adopting a particular innovation on their operations. What you’ll learn: Here is a list of topics and experts scheduled to present at Bov-Innovation: Preconditioning and its potential payoffs: helping producers make an informed economic decision about whether or when to implement or modify a preconditioning program. This session will lead off with a presentation by Brenna Grant of Canfax Research Services and Dr. Oliver Schunicht, a cow-calf producer and veterinarian with Feedlot Health Management Services. Responsible antimicrobial use: Dr. Cody Creelman of Veterinary Agri-Health Services will discuss how to ensure appropriate animal health and care on cow-calf and cattle-feeding operations, while avoiding antimicrobial resistance to ensure that these essential products continue to be effective in the future. Demystifying genomic selection tools will feature a headwww.canadiancattlemen.ca

and-myth-busting tag-team presentation by Dr. John Crowley of the Canadian Breeds Council and Dr. Kim McLean, Sask atchewan Ministry of Agriculture’s provincial cattle specialist. They will explain the pros, cons and cost effectiveness of genomics and its potential for the beef value supply chain. Internal parasite control will be discussed by Dr. John Gilleard of the University of Calgary’s faculty of veterinary medicine. This will cover the impacts of parasites in pasture and feedlot conditions, the cost effectiveness of different parasite control strategies, and the effect of increasingly variable weather on parasite control programs. Improving forage production through soil health featuring Dr. Jill Clapperton of Rhizoterra will focus on using cover crop cocktail mixes to cost effectively maximize forage production and improve soil health. Pain mitigation will feature Dr. John Campbell of the Western College of Veterinary Medicine, providing an overview of how to cost effectively modify or implement on-farm practices aimed at preventing and controlling pain during painful procedures like castration, dehorning and branding. These well-respected experts will be accompanied by industry leaders and producers who have adopted these production practices. They will share their thoughts about what works well, what doesn’t work as well, and other things they have learned in adopting, adapting, altering and fine tuning these management practices on their own operations. The presenters will stay around to visit with producers and answer questions after their session is complete. The Beef Cattle Research Council and the Canadian Beef Breeds Council will provide additional information and resources to producers who are interested in learning more about each practice. If you like our webinars, you should love these interactive in-person sessions. What it means: This is the first time the BCRC has coordinated an in-person extension event. This unique event is possible because of National Checkoff funding, the Beef Science Cluster, our experience in extension over the past few years, and the collaborative spirit of the National Beef Strategy that’s got many of the national beef organizations working together to organize and host the Canadian Beef Industry Conference. For more information, go to canadianbeefindustryconference.com. We hope to see you there! The Beef Research Cluster is funded by the National Checkoff and Agriculture and Agri-Food Canada with additional contributions from provincial beef industry groups and governments to advance research and technology transfer supporting the Canadian beef industry’s vision to be recognized as a preferred supplier of healthy, high-quality beef, cattle and genetics. c Dr. Reynold Bergen is the science director of the Beef Cattle Research Council. C a t t l e m e n · J U NE 2 0 1 6 21

 animal ca r e

By Debbie Furber

the feedlot audit Canadian feedlot animal care assessment

he Canadian Feedlot Animal Care Assessment Program reduces the audit process from overwhelming to manageable by laying out exactly what producers, processors and their customers agree upon. By following a supplied checklist and scoring system, trained auditors provide a snapshot of animal-care and handling practices at your feedlot. Self-audits should be done at least once a year and at differing times each year to account for seasonal variability in the classes of animals in the lot, disease risk and environmental conditions. These audits are a good way to verify continuous improvement for your own records and identify any weaknesses in preparation for second-party audits by a trained person with whom you regularly do business, such

as a veterinarian or someone from a packing plant. Some customers may request third-party audits by an independent certification organization. First, the auditor will: • Call to let you know an audit has been requested and book an appointment. • Provide an audit checklist, plan and a list of the feedlot’s animal-care protocols and supporting records to be reviewed during the audit. • Ask about the feedlot’s biosecurity and other procedures that need to be included while conducting the audit. • Ask for your approval to bring others on the call, such as an apprentice or observer, or remove anyone with whom you have a concern on the grounds of impartiality, confidentiality, or conflict of interest. • Ask for the cattle inventory and pen layout

to draw up an animal-sampling plan ahead of time. You are not obligated to provide this information until the day of the audit. If your feedlot has more than one yard, the auditor may need to do audits on one, all, or parts of each yard. The goal is to arrive at a balanced animal-sample that provides representative data for your operation and can be practically assessed. The audit starts with a meeting to go over the process before moving on to review feedlot documents, evaluate facilities, observe the cattle, and interviews with the owner and employees on related aspects to determine whether people are actually observed doing what they say they do. Feedlot employees assigned to accompany the auditor should not interfere in the auditor’s work, nor should the auditor interfere with normal activities at the feedlot or offer

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feedlot audit

advice. The only exception is in the case of a wilful act of abuse or neglect when an auditor will intervene and immediately report this action to the feedlot owner. Each criteria is scored full points when the minimum target is met as follows: 2 for commitment, written protocols and records, 5 for facilities and employee training, 10 for animal outcomes because they are the most objective and important measures of animal care, or 0 when the minimum target is not met. Criteria that don’t apply to your feedlot are scored “not applicable” and those not observed that day are scored “not observed.” Three critical criteria — willingness to participate in the audit, wilful acts of abuse or neglect and effective euthanasia — are scored either “pass” or “fail.” Failure of any one of these criteria results in a failed audit, and corrective actions must be taken immediately, followed by another audit within 30 days. To wrap up, the auditor will explain the positive and negative findings and follow up with a detailed written report. If an issue is identified, you will be asked

An audit is designed to provide a snapshot of the animal care and handling practices in the feedlot.

to report on a proposed timeline for implementing your corrective actions. The company that requested the audit is responsible for approving your plan and deciding when and if a follow-up audit is necessary before the next regular audit. This one of a series of articles on the

Canadian Feedlot Animal Care Assessment Program. Please see Canadian Cattlemen, May 2016, for more background. For access to the program documents, contact your provincial cattle feeder association or the National Cattle Feeder Association, 403769-1519, info@cattlefeeders.ca. c

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C a t t l e m e n · J U NE 2 0 1 6

 grazing

By Steve Kenyon

Be A Soil Farmer

hen I first started farming, I bought some cows. I was a cattle farmer. I eventually figured out that if I could take good care of the grass, it would take care of the cattle. When I determined the cattle were simply a tool to manage the grass, I became a grass farmer. A few years ago I figured out that if I can take care of the soil, and the soil life within it, that would take care of the grass, which would then take care of the cattle. In other words, plants are simply a tool to manage the soil. So now I am a soil farmer. I wrote an article last year about Jean Baptista Van Helmont. He was a scientist in the 1600s who wanted to learn how plants grew. If you recall, he was arrested for his science, as it was against modern thinking at the time. His conclusion was that plants grow from water because the weight of the soil at the beginning of the experiment was nearly the same as at the end. His plants grew by adding only water. Modern thinking at the time was that plants grew from using up the soil. Wait a minute: is that not the same modern thinking that we use today? We add fertilizer to the soil and we have to keep adding to the soil because it gets used up. Think about it. Do you believe that the plants grow from the soil? Let us look at this a little closer. Jean did not know about photosynthesis. Photosynthesis is when the plant takes carbon dioxide (CO2) and water (H2O) and combines them by using sunlight energy to form a simple sugar called glucose (C6H12O6). Did you know that a plant could grow without soil? In a crack in a rock on a mountainside, a spruce tree can grow. Where does it get its nutrients? From the air. Over 95 per cent of the makeup of any plant comes from the air with some assistance from soil organisms. If we look at the typical dry matter composition of a plant, it looks something like this — carbon: 45 per cent, oxygen: 45 per cent, hydrogen: six per cent and nitrogen: 1.5 per cent. Any other element in a plant will make up less than one per cent. Most are measured in parts per million. The rest of the elements we need to grow plants come from somewhere else. This could be from the soil or straight from rock, with the help of our friends mycorrhizal fungi. My point is that the plants do not need soil to grow. However, the soil does need the plants. Photosynthesis by the plants produces sugars, which are the foundation to life. It is the plants that push sugar out of the root tips as they grow that glues the soil particles together causing good aggregation. The plants build the soil by taking H, O, C and N from the air and adding it to the soil. We do also have to give credit to the soil microbes. In symbiotic relationships with the plants, many of our microbiotic employees also help to build the soil. For example, mycorrhizal fungi produce glomalin, which is a glycoprotein. Most tests greatly underestimate the amount of glomalin in our soils, which can account for up to one-third of the organic carbon stored in agricultural land. However, we need healthy soils with good organic life to do so. I have often heard the recommendation that producers need to cultivate their pastures every eight to 10 years in order to release “bound up” nutrients. I totally disagree with this practice. I am trying to build up my soil by making nutrients become “bound up” in it. When you break up that pasture, nutrients are released. This allows you to mine the land and deplete it faster. The problem is that it

C a t t l e m e n · J U NE 2 0 1 6

works, as producers get a really good crop for a few years by mining the nutrients. But this is a short-term gain that comes at the cost of depleting the soil. Building soil also increases the water-holding capacity by putting more carbon back into the soil. Humus can hold up to nine times its weight in water. The best way to put organic carbon back into the soil is through exudation from the actively growing roots of the Poaceae family of plants. This includes pasture grasses and cereals. Exudation is when the root tips are pushing out sugars as they grow, which glues the soil together. The breakdown of plant material and their fibrous roots is also an important source of carbon in soils. The more active the plant roots are, the more carbon is added. Also, the more diverse the plants, the better it is for your soil life. We need to stay away from monocultures. Polycultures create healthy ecosystems. I am experimenting with pasture cropping; I want to have perennial pasture grasses and cereals together. The ongoing carbon inputs from the perennial grasses create highly stable forms of soil carbon, while the short-term, high-sugar forms of carbon exuded by the roots of the cereal crop stimulate microbial activity. This is a good combination in building soil. I also want to have some legumes to fix nitrogen as well as some plants that open up the soil like tillage radish and sweet clover. These are not meant to be a forage, but more of a soil amendment. These big roots can dig down and open up the soil allowing water and air infiltration. In a healthy ecosystem, plants grow the soil, not the other way around. Of course, this is all tied together with the recycling of nutrients provided to us by our livestock, that recycle 80 per cent of what they consume. I am sure glad that they are so inefficient; it is almost like they were meant to be that way. My lesson learned: Use plants to build soils and use livestock to manage the plants. It’s been working for centuries without us. 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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 cover sto ry • r es ea rc h

By Drs. Gabriel Ribeiro and Tim McAllister

can we rate the Beef value of beer barley with one test?

fter wheat and canola, barley is the most prominent crop in Western Canada. From 2005 to 2014, an average of 7.9 million acres was seeded resulting in an average annual production of 9.2 million metric tonnes. Barley grain has two primary end uses: as malt for beer or as livestock feed. On average, the value of malt barley is 60 per cent higher than feed barley. In Canada, more than 50 per cent of the barley seeded is grown for malt and as a result most breeding programs focus on improving brewing traits. However, barley must meet a rigorous set of criteria to qualify as malt. Of these traits, the most important are hot water extract,

C a t t l e m e n · J U NE 2 0 1 6

viscosity, Kolbach Index, wort ß-glucan, fermentability and diastatic power (DP). Barley that fails to make malt (75 per cent to 80 per cent of production) is relegated to feed. As a result, barley is the most common grain fed to feedlot cattle in Western Canada. Feed barley is marketed mainly by bushel weight, degree of plumpness, and percentage of thins, traits that show only a modest relationship to its feed value for ruminants. Recently, we undertook a project to access the relationship between the malt and feed value of barley grain, and identified diastatic power as a malt trait that is negatively correlated with the digestion of barley (at least barley incubated in nylon bags in the

rumen for four or 12 hours). Thus, lower diastatic barley would be more digestible in the rumen and have higher feed value. Diastatic power reflects the combined activities of four enzymes (alpha-amylase, beta-amylase, limit dextrinase, and alphaglucosidase that solubilize starch to fermentable sugars during malting. Of these enzymes, beta-amylase is the only one that is normally active in barley; the remainder become active during germination. Thus, low-diastatic power barley is undesirable for malt as it indicates that the level of starch-degrading enzymes in the barley will be too low to produce the sugars that are fermented to alcohol during beer production.

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research

Diastatic power in barley is influenced by genetic and environmental factors and is predicted using near-infrared spectroscopy (NIRS) when assessing malt quality. If diastatic power also has a relationship to barleyâ€™s feed value, an index of feed quality could be generated at the same time as the barley is assessed for malting quality. Barley that differs in diastatic power may also respond differently to processing methods such as dry- or temper-rolling. Processing of barley grain is necessary to disrupt the fibrous hull and pericarp so rumen bacteria can access the starch in the endosperm and release the sugars required for ruminal fermentation. However, excessive processing may cause the www.canadiancattlemen.ca

sugars to be released too quickly, leading to acidosis and compromising the growth performance and carcass quality of feedlot cattle. The degree of processing of barley grain is often assessed by measuring the processing index (PI), which is calculated by dividing the weight of the grain after processing by the weight before processing and multiplying by 100. Grain with a lower PI is more extensively processed. We conducted a study using feedlot steers to evaluate the feed value of high- and lowdiastatic power barley grain that was dryrolled at a low (75) and high (85) PI. We observed that low-diastatic power

barley consistently had a higher starch and lower protein content. Consequently, measuring diastatic power during malt grading can also be used to predict the protein and starch content of barley. Lower rumen pH was also observed just prior to feeding in steers fed low-diastatic barley as compared to high-diastatic barley. Feed intake was not affected by diastatic power, but was lower with more severe grain processing (PI-75 versus PI-85). Low-diastatic power barley tended to be more digestible than high-diastatic power barley, likely because of its higher starch content. Steers fed more highly processed (PI75) barley also had higher gain:feed and net energy for gain (NEg) values. Digestibility was also higher for PI-75 barley as compared to PI-85 barley. Low-diastatic power barley combined with a lower processing index increased carcass dressing percentage by 0.5 per cent, tending to also increase ribeye area. Compared to high-diastatic power barley, steers fed low-diastatic power barley diets had more total (41.7 per cent versus 19.4 per cent) and severe liver abscesses (22.2 per cent versus 9.7 per cent), a finding that may be linked to lower rumen pH. These results suggest that while low-diastatic barley increased liver abscesses, it did not alter digestion or growth performance, but did improve dressing percentage. Barley differing in diastatic power responded the same to processing. More intensive processing improved starch digestion, feed efficiency and net energy for gain. This suggests when barley fails to meet the malt grade producers could use the diastatic power reading as an immediate indicator of the barleyâ€™s feed value. Calibration equations that predict diastatic power using near-infrared spectroscopy (NIRS) are available and could be used by feedlot producers that possess NIRS machines to predict the feed value of any barley. This study also shows that grain processing has a greater impact on feedlot cattle performance than any slight differences in the composition of barley grain. Thus, feedlots should pay close attention to the processing of barley grain if they are to derive the greatest feed value from barley. c Gabriel Ribeiro is a visiting scientist and Tim McAllister is a principal researcher with Agriculture and Agri-Food Canada at the Lethbridge Research Centre, where they study various aspects of feedlot cattle production.

C a t t l e m e n Âˇ J U NE 2 0 1 6

 marketi ng

By Mike McMorris

The Real Cost of FAT

n his recent article Yield is down, fat is up, pg. 55, February 2016 Canadian Cattlemen, Charlie Gracey did an excellent job of highlighting excess fat as a serious issue for the Canadian beef industry. Creating more marbled carcasses by feeding cattle longer has resulted in larger carcasses, excessive fat cover and plummeting yields. Although it is difficult to determine the true cost of this excess fat, let me present a case. Analysis of grading results from 2005 and 2015 indicate that the average carcass in 2015 contained 19.3 pounds of fat per cwt compared to 16.7 pounds per cwt in 2005. That increase of 2.6 pounds per cwt comes to an extra 22.5 pounds per 2015 carcass. On the 2.78 million cattle slaughtered in 2015 this is an extra 62.6 million pounds of fat. The real question, though, relates to the cost of all of that fat. Current reported average cost of feedlot gain is $0.76 per pound. We know, however, that feed efficiency drops dramatically as an animal fattens, and so adding one pound of fat to an animal is significantly more expensive. Using an estimate of $1.50 per pound of gain for fat, the cost of the excess fat in 2015 was a rather staggering $93.9 million. To put that in perspective, it is equivalent to a $33 discount on every steer and heifer fed in Canada. This could be justified if feeders received a significant premium for AAA carcasses; however, there are now so many AAA carcasses that there is, in fact, no premium at all. As Gracey noted in his article, cattle feeders may be making a logical decision to feed to excess as the payment structure and feed costs support this strategy, although barely. But step back for a moment and think like a consumer. They ultimately pay for this excess fat through higher beef prices. Like all rational consumers, higher beef prices make you look more closely at chicken as a preferred alternative. It will take a concerted effort to change the system so that this inefficiency can be dealt with. The Canadian Cattlemen’s Association recently launched a National Beef Strategy (beefstrategy.com). The strategy has four pillars, including three that can be assisted by dealing with this issue: Beef demand pillar: The goal under this pillar is to enhance beef demand and, as a result, enhance carcass cutout value by 15 per cent over five years.

2015

48%

64%

YG1

66%

41%

YG2

25%

35%

YG3

10%

24% 2,783,029

Carcass weight steers

826

895 lbs.

Carcass weight heifers

770

823 lbs.

C a t t l e m e n · J U NE 2 0 1 6

868 lbs. 2.95

per person per year 1986-2014 Chicken

Turkey

Pork

Beef

Veal

Mutton and lamb

30 25 20 15 10 5 0

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986

Average rail price $/cwt

40 Protein disappearance (kg)

2005 AAA

Weighted average carcass across sexes

Mike McMorris is the general manager of BIO.  Canada food availability

Data used in Calculations

Total Canadian animals processed

The figure below lays out in stark terms the challenge we face with regard to demand: beef consumption has continued its 30-year decline, replaced with chicken, which has enjoyed a healthy 30-year run. By feeding excessively, adding fat that is then trimmed and tossed aside, we are in reality making beef less and less competitive. Chicken has been winning the war and at this point, we’re handing them the bullets. How does excess fat relate to carcass cutout value? Well that $33 in excess fat is a little over one per cent of the value of a carcass. This alone will not meet the 15 per cent target of the strategy but it could make a good contribution toward the goal. Productivity pillar: The goal here is to increase production efficiency by 15 per cent. Fat is added to an animal at a cost of feed roughly 2.5 times that of adding muscle. To make the math simple, if we use a feed efficiency of 5:1 for muscle (12.5:1 for fat), this additional 62.6 million pounds of fat equates to 391,000 tons of grain. It also results in a tremendous amount of both more manure and greenhouse gas. For both industry efficiency and industry sustainability, excess fat is a problem. Connectivity pillar: Through efforts in this pillar, the goal is to enhance industry synergies, connect positively with consumers, the public, government, and partner industries by actively addressing industry issues. The beef industry suffers from a disjointed supply chain that results in confused (or lack of) market signals. This is where the problem of excess fat arises: each player making logical moves that add up to something that really makes no sense. There are several initiatives now underway that can help. Data systems such as bioTrack (www.biotrack.ca) can help to connect the information dots. The caveat, of course, is that people must get on the systems and that data is shared freely or at a reasonable cost, particularly grade data. A powerful but highly underutilized tool available to the beef industry is genetics. By selecting the right bulls, we can get the marbling desired without the excess feeding and fat. We simply do not need to sacrifice yield in the pursuit of marbling. c

www.canadiancattlemen.ca

 genetic p ot e n t i a l

This figure shows the measurements taken by BIO on 3,800 young beef bulls in the past five years. Marbling (intramuscular fat) and fat cover are measured using ultrasound and so we can actually know the genetic merit of individual bulls for efficient marbling. Each dot is an individual bull plotted by his actual marbling and fat cover. The bulls represented by a red dot have reached sufficient marbling to grade AAA yet with a reasonable fat cover (10 mm or less). These superior animals make up 18 per cent of the total. Selecting these bulls as herd sires would improve the efficiency of production; reduce feed inputs and excess fat; lessen environmental impact; while also leading to a more satisfied beef consumer.

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hanges to farm safety regulations are expected soon — and that might not be a bad thing for Alberta farmers, says the president of the Alberta Federation of Agriculture. “Workers’ compensation or private insurance really is a great risk management tool for farms nowadays,” said Lynn Jacobson. “That protection against litigation is one of the big selling fac-

tors for workers’ compensation.” Oneil Carlier, the new NDP agriculture minister, has vowed to extend workplace safety regulations to farm workers who aren’t currently covered by workers’ compensation or Occupational Health and Safety regulations. Today, only around seven per cent of Alberta farm employers voluntarily carry workers’ compensation for their operations. But offering that protection — both for employers and employees — is one of the realities of farm-

ing today, said Jacobson, who farms near Enchant. “There’s getting to be more and more hired help on the farm and we’re employing more people,” he said. “It gives protection from litigation and other advantages, and if you don’t have it, there can be some serious consequences.” And farm workers today “aren’t just interested in a paycheque,” he said. “They’re starting to realize, ‘If I get hurt on this job, where’s the protection for my family?’ When it comes down to it, a farm that has some type of

protection for those people is going to have a lot easier time hiring people.”

senior executive with CP Rail says the company is “well positioned” to move this year’s g ra i n c r o p d e s p i t e re c e n t cutbacks in staff and locomotives. Grain is, was and will continue to be Canadian Pacific Railway’s biggest cargo, John Brooks, vice-president of sales and marketing for bulk commodities, said in an interview Aug. 6. And the historic railway founded in 1881 is investing to move even more in the future, he said. “Make no bones about it, grain is king at CP,” he said. “It is our life-bread. There is nothing we want to do more than move a lot of grain. “I think we feel pretty good about our handling capacity… to move this new crop.” see CP Rail on page 7 »

High tunnel production has potential to extend the Manitoba grower’s season, says MAFRD’s fruit crops specialist Anthony Mintenko. He and the provincial vegetable crop specialist are evaluating fruit and vegetable crops for high tunnel production at the AAFC site at Portage la Prairie. PHOTO: LORRAINE STEVENSON

BY LORRAINE STEVENSON

Cost and paperwork

Co-operator staff / Portage la Prairie

There are “some misconceptions” about workers’ compensation that have made Alberta farmers reluctant to offer coverage to their workers, said Jacobson. “Some people don’t like that administrative role and the paperwork that is associated with the program at this point in time,” he said.

production system that extends the growing season, offers growers a competitive edge in the marketplace and potential to make more money sounds mighty tempting. That’s why fruit and vegetable growers were out in large numbers at Hort Diagnostic Days in late July to hear more about construction of high tunnels. This is the first year a variety of fruits and vegetables has been planted in the high tunnel built in 2014 at the Agriculture Agri-Food

Canada location in Portage la Prairie. Growers are keen to hear what Manitoba Agriculture, Food and Rural Development (MAFRD) specialists are learning. High tunnel production is commonplace in other parts of Canada and in northern and central U.S. where nearly every type of fruit and vegetable is now grown, even tree fruits. MAFRD staff are researching how high tunnels work in Manitoba growing conditions. “We have a lot of recommendations from other places like Minnesota and Ontario about what to grow in a high tunnel but nothing for under Manitoba conditions,” said fruit

crop specialist Anthony Mintenko, who is evaluating day-neutral strawberries, early-season June-bearing strawberries, fall-bearing raspberries and blackberries at one end of the 100x15x7.5-foot tunnel. Provincial vegetable specialist Tom Gonsalves is experimenting with vegetables such as tomatoes, cucumbers and peppers at the other. High tunnels are like greenhouses, except they don’t have a double layer of poly, and no permanent heat or electricity. But they have a similar function — they keep cold out and, conversely, heat in.

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Friday September 9th C a t t l e m e n · J U NE 2 0 1 6

 Free Mar k et R e flect i o n s

By Steve Dittmer

Too Far Out?

anadian cattlemen are upset because a Canadian-based chain, Earls, has decided to serve only “Certified Humane” beef, currently only available from one source — Creekstone Farms in Kansas, U.S. Ah, the complexities of producing and marketing food today. I’m sure Canadian cattlemen and processors were quite taken aback that a Canadian restaurant chain would shut them out of the supplier chain. It is also a bit surprising that it is happening in a smaller country, where one might expect businessmen to be more likely to stick together and protect each other. No one can accuse Earls of too much “nationalism,” a term the politically correct have turned into a “diversity” offence. In this PC age, businesses are sometimes quick to overreact to consumer fads/trends, thinking they need to stay ahead of trends. On the other hand, the fact that only one supplier in the two countries feeding nearly all the world’s grain-fed cattle could supply something would tell most businesses they were getting ahead of their supply lines. Judging by their menu prices, they could also be getting ahead of their average customer’s devotion to a fad/trend, especially if based on preconceived notions and inaccurate information. Prudent business planning would suggest that having only one supplier for any business is risky. In the meat business, a processor is always just one inspection problem, one process problem from being shut down for hours or days. It is an inherent risk. But companies consider different risks differently. I’ll admit I was very surprised that some of the biggest food companies in the U.S. are cutting and running ahead of Vermont’s GMO labelling law (to take effect in July). I really thought that with Vermont’s minuscule population of roughly 625,000, the big food companies would figure, “What, reconfigure our entire product line and get new label approvals for 1/1,000th of the population?”… and just refuse to ship to Vermont. Yet the biggest corporations have public relations departments telling them that if they are not politically correct — aren’t green enough, don’t recycle, don’t acknowledge so-called climate change and aren’t sustainable enough, they might have protesters outside their gates and social media in an uproar. Their sensitivity level is very high. Meanwhile, while kowtowing to politically correct overreaction, how much accurate information from credible sources is being provided to those customers who really want to know? Adele Douglass, who runs the group providing the “Certified Humane” standards, was raised in New York City and nothing in her resumé indicates any real experience in production agriculture.

C a t t l e m e n · J U NE 2 0 1 6

This is the difficulty all of agriculture has with its customers: many of them think of animals in terms of what’s sitting on the couch with them watching TV, a setting far removed from animal agriculture. They have difficulty imagining the sensitivity level or relative intelligence level of chickens, for example. They cannot easily understand how cattle can thrive outside in conditions humans can only handle with proper clothes and protection. And the misinformation about beef cattle, that spend 75-80 per cent of their life outside, eating grass, which the activists and the somewhat emotional feel is essential, somehow gets flipped to, “What, you leave them outside in the winter?” What happened to free to roam and fresh air? I’m also concerned with the implication that the terminology “humane” is being lumped in with the use of antibiotics or growth promotants. Humane has historically meant how animals are treated, as regard to food, shelter, handling and, in the case of food animals, slaughter. I see nothing germane to humane when it comes to growth promotants. As for antibiotics, is it humane to let an animal suffer or humane to provide proper medical care? Why create a conundrum wherein the temptation is to see if the animal gets well on its own, rather than treat it and immediately forgo the substantial premium for animals that are never treated? As for slaughter, there have been humane slaughter laws for many decades. Additionally, there are likely no major packers in either country that have not had Temple Grandin in to evaluate their facilities and recommend improvements in the handling and harvesting of the animals. Of course, Earls’ management has since announced that it would be happy to buy Canadian beef as long as it can meet the same standards of the Creekstone brand and be certified humane. The Canadian industry contends it already meets these standards, and is in the process of creating programs to certify it. As I write this, however, Earls’ menu still states: “Our juicy, all-natural 100% Creekstone Farms Black Angus hand formed beef burgers are free of antibiotics with no added hormones.” Note, it doesn’t say the livestock were raised without the use of antibiotics and growth-promoting natural hormones. It says the burgers are free of antibiotics with no added hormones. The same statement can be made for virtually every burger produced in Canada and the U.S. by the time an animal is harvested. The implication, however, is that other beef burgers are laced with hormones or antibiotics. Now we even have DNA research to document the “free” part for all beef. The bottom line: the industry has a lot of educational work to do so consumers understand the real truth. c

Steve Dittmer is the CEO of Agribusiness Freedom Foundation, a non-profit group promoting free market principles throughout the food chain. He can be reached at steve@agfreedom.ag.

www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

A fresh vision for growth from grass The Maritimes’ innovative plan to attract new producers

or several years Nathan Phinney has watched his beef industry in Eastern Canada lose producers and cattle. Today he’s more hopeful that is about to change for the better. The reason is an innovative effort being designed to get more young people into beef production. It’s a future built on grass. Over 220,000 acres have been identified as underutilized grassland in New Brunswick alone, says Phinney.“We decided to focus on what we could do well and we can grow grass as well as anybody. “We had young people interested in beef production but often no access to family land. So we brought together a group of industry thinkers to look at ways to get young people engaged in beef production without overcommitting financially.” The focus is a five-point systems approach, to build equity in cattle first, land and equipment later on. Grass resource. First step is to improve community pastures. New Brunswick has about 6,000 acres of them all running under about 20 per cent capacity. With government involvement they have brought in speakers to teach new pasture management techniques and look at new varieties to boost grass performance. Business tools. Next was to put together a cost-of-production model, one around calving in winter, another in summer. That will give young people good business planning tools. Cattle first. Young people can take out a government-supported loan with 10 per

Grazing would benefit thousands of acres of unused grass in the Maritimes, and new thinking is on the way to assist young entrants.

cent down, and gradually build up a cow herd without physically purchasing a farm and carrying heavy debt. The goal for some would be to use this model to grow to a cow herd for a full-time operation. Use infrastructure. “We have a bull test station with feed efficiency monitoring equipment, but for six months it was empty. Now we’ll use it to test heifers for feed-efficient animals and link that to breeding,” says Phinney. Heifers will be available for grazing on community pastures and options for wintering these animals have been identified. Those coming off test qualify purchasers for a provincial government rebate. VBP training. These growing herd units will be built around the Verified Beef Production (VBP) program as a production training framework.

Meeting the vision

“That’s our vision,” says Phinney. “We are trying to get our numbers up so we don’t lose our infrastructure. “We know as business managers we have to pay attention to numbers, to technologies, to new markets and be prepared to adapt. “But we are thinking outside the box. In our research we found person after person that didn’t qualify for a loan or didn’t have a plan. Now we would have all the tools in place for people. “Government is seeing the value in this. Instead of the beef industry coming with its hand out, now we have a solid plan that says this is the direction we are going, this is what your investment would be and these are the benefits for the province. It should be a win for all parties.”

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C a t t l e m e n · J U NE 2 0 1 6

 vet aDvi c e

emergency response is about learning the right things

othing in the beef industry flames fear more intensely than the spectre of foreign animal disease and the inevitable shutdown of export markets. The emergence of BSE and collapse of Canada’s beef markets in 2003 shaped a decadelong economic slump that exposed an industry unprepared. Emergencies in the cattle business cover the spectrum of missed chances, bad choices or just bad luck. Today’s narrative should be about how industry better understands the anatomy of an emergency, about building co-ordinated response plans within and between segments, how it reassembles the pieces for recovery, and how it sustains industry infrastructure through vacuums created by an emergency (processing and trucking industries are examples). By their very nature, disease events tend to be unexpected and the variety of eventualities, limitless. Though planning and preparation for emergencies take place in artificial settings, we’re better equipped because we learn the right things. In preparation for emergencies, the livestock industry must remain mindful of the successes and failures associated with human disease outbreaks and the crossover that often occurs between people and animals. Ongoing influenza outbreaks, the horror of the West African Ebola epidemic, and the international emergence of Zika virus, dengue fever and Chikungunya are real-life illustrations of disease emergencies and the potential gaps in both veterinary and medical infrastructure that permit them. For the North American cattle industry, the greatest threat regionally and nationally is foot-and-mouth disease (FMD). The United States has been FMD free since 1929, Canada since 1952, yet the highly contagious disease remains endemic throughout much of the world. Recent studies by the USDA, Colorado State University, University of Warwick in the United Kingdom and Linköping University in Sweden showed that rapid implementation of movement controls at a regional level play an important role in stopping or slowing the spread of rapidly transmitted animal diseases like FMD. Without early detection and intervention, the economic impact of FMD reaches into the billions of dollars very quickly. FMD in Canada could potentially cost $6 billion for a small, quickly contained outbreak, while losses attributable to a larger, more extensive outbreak could easily reach $45 billion. U.S. estimates place potential FMD losses at $188 billion. Even when dealing with unpredictable emergencies, a little preparation goes a long way. Through 2014 and 2015, Canada’s cattle-feeding sector took an indepth look at sector-wide emergencies in an attempt to formulate emergency preparedness plans that would help guide feedlot owners through potential disasters, especially those associated with disease outbreaks. In April 2015, the Alberta Cattle Feeders’ Association reviewed and tested the plan with the goal to eventually hand it off to the National Cattle Feeders’ Association for use as a blueprint in other provinces. The project generated draft guidelines and a workbook that producers, feedlot operators and allied industry organizations could take home, work through and systematically prepare for disease-related, sector-wide emergencies. The Lethbridge workshop reinforced that sector-wide emergencies can and do occur. Owners and operators were reminded that the cattle they control are their responsibility and they alone are accountable for their well-being. The essential constituent of

C a t t l e m e n · J U NE 2 0 1 6

managing an emergency is recovery by having tools and information in hand to minimize losses, to demonstrate due diligence and enable a faster return to normal. The workbook consists of the following sections: • Self-assessment. • An overview describing how a major disease outbreak looks from a feedlot operator’s perspective along with the expectations placed on feedlot operators. • Guidelines covering the recognition of “disease triggers” and appropriate response to unusual animal health events. Mention is made on topics like mass vaccination protocols, zoning, the challenges of mass depopulation and disposal, personal safety, and quarantine. The guidelines briefly describe the Incident Command Structure, how it works and the absolute necessity of maintaining ICS for successful organizational control and communication. • Tools for getting prepared, training staff and organizing a register of specific information for each feedlot needed during emergencies, including feedlot objectives, farm schematics, inventory lists, contact directories, and visitor controls. • Recovery. Unfortunately, mass destruction and disposal, and real-time surveillance able to detect unusual disease events early in the course of an outbreak are two major components of emergency planning that remain glaring breaches, and have remained so for many years. Early detection and rapid response to animal disease outbreaks is crucial to ensuring global security. Every hour a disease like FMD goes undetected adds an additional $3 million to control costs. A gap in surveillance capability also plagues response to human epidemics. The world wasn’t prepared for Zika to fly across continents in the span of a few months. The response to Ebola in West Africa, was built on sheer will with very little permanent scaffolding established for long-term changes to the health-care system. The issue around a deficiency in surveillance goes back to funding priorities. Much of the funding devoted to infectious disease today is in reaction to outbreaks. With that, veterinary and human health communities are not generally prepared to respond quickly. Although we’re not stuck with what we’ve got, serious discussion between federal funding agencies and private organizations is necessary to prioritize resource spending. Sustained disease vigilance is crucial. By aiming at the end of the epidemic, we miss the larger point. We cannot live as a world that moves from responding to one epidemic after another. Rather than thinking of beginnings and ends, we need continuous surveillance for threatening infectious diseases that are both known and yet to be discovered. We need to move from a culture of outbreak response to one that focuses on prevention. Small clusters of infectious disease cases are inevitable, but outbreaks and epidemics are preventable. (Nahid Bhadelia, Infectious Disease physician at Boston Medical Center and the director of Infection Control at National Emerging Infectious Diseases Laboratory.) c Dr. Ron Clarke prepares this column on behalf of the Western Canadian Association of Bovine Practitioners. Suggestions for future articles can be sent to Canadian Cattlemen (gren@fbcpublishing.com) or WCABP (info@wcabp.com).

www.canadiancattlemen.ca

 prime cuts

By Steve Kay

What to do about wacky markets?

arkets crave stability and predictability. But the opposite occurred during 2015 in the U.S. cattle markets. In fact, last September’s shocking collapse in live cattle cash and futures prices (which I outlined in my October 26, 2015 column) capped a year when the futures’ volatility and irrationality caused huge financial damage to producers and packers. The collapse eventually led a fringe producer group to demand a congressional investigation. Its demand caught the attention of several members of the U.S. Senate, who this April requested that the General Accounting Office (GAO) complete an assessment of the collapse. At time of writing, the Senate’s Agriculture Committee was planning to hold a hearing on the collapse. The producer group, as it has done in the past, pointed its finger at packers. But it is clear that what occurred last fall was a massive sell-off in the futures that caused cash prices to tumble. That’s why industry groups asked the CME Group to take a close look at the behaviour of high-frequency computerized trading (HFT). The CME then pledged to make technical adjustments to trading rules in an attempt to reduce the volatility. Most market participants breathed a sigh of relief in the first quarter when the futures market was relatively stable, albeit negative, in regards to cattle contracts. But the volatile behaviour abruptly returned the third week of April. The April and June live cattle contracts fell more than 500 points each in a few days and dragged cash prices down to their lowest level this year. The April cattle contract ended up losing 837 points in 10 trading days while the June contract lost 725 points. All this was despite no change in market supplyand-demand fundamentals. In fact, the fundamentals

are more positive than for at least two years. The selloff immediately preceded the two best beef demand months of the year, so one might have expected the April and June futures to rally, not collapse. The futures market proved just as contrary the second week of May. Cash prices rocketed higher as packers sought cattle for their largest slaughter week since June 2014. Cash prices increased $6 per cwt live from the week before and dressed prices increased nearly $10. But even as the trade was going on, the June futures contract closed 25 points lower than the previous day, at a $10-per-cwt discount to cash. This action raised even more consternation about the futures’ behaviour and bewilderment to why they act so divorced from the fundamentals. The only reason market watchers could suggest for the April collapse was that HFT kicked in on technical stops and forced others out of the market. In the words of one trader, it was “the attack of the algorithms.” Whatever the reasons, such irrational behaviour last year and again in late April caused significant psychological and financial damage to the cattle and wholesale beef markets. The sudden return of such behaviour has market participants wondering when it will strike again. Fears have been rekindled that the futures cannot be relied on as a price discovery mechanism or risk management tool. The CME’s proposed measure had not been put into effect by mid-May. Market participants have little optimism it will have much effect anyway on HFT. As they point out, the CME is a for-profit business. It derives revenue primarily from trading fees. So why would it act to significantly reduce the amount of HFT and one of its most important revenue bases regarding live cattle futures? So participants are steeling themselves for yet more volatility. c

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C a t t l e m e n · J U NE 2 0 1 6 33

 straigh t f ro m t h e h i p

By Brenda Schoepp

Farming is our Future

griculture is a diverse and exciting industry. The variety of farms and the people who live on them weave the colour into the fabric of food production. There is no doubt we have a great future but how does that future differ from today? The urbanization of Canada will have an impact on our farming practices. Every civilization is built on the production of food and the best soil dies under our cities. By 2020, 80 per cent of the global population will live in urban areas within 60 kilometres of a shore. This is Canada’s profile as well with over 70 per cent of our population living in a port-side city. The continuous food going in is one issue but the waste coming out also pressures surrounding agricultural land. Agricultural enterprises by nature are often stand-alone independent units but this too is changing and we will continue to see alliances and partnerships, especially when value adding is present. To truly establish markets, producers will be seeking out end-users that align with their value systems. Younger farmers today are hungry for information that adds value to their product and are well informed and very comfortable with these types of agreements. Rural communities will change and prosper depending on their access to technology. We are starting to see some very interesting farm operations and vibrant smalltown economies based on technology hubs and layering of partnerships. With the access to information and the ability to communicate globally there are no restrictions on opportunity. Lately this has been expressed in the resurgence of interest in small family farms. Small is big again and young couples are flocking to the farm armed with their education, cell phones, cloud technology and business plans. Many of these new farmers are women. In Canada, 30 per cent of farms and ranches are owned and operated by women (40 per cent in British Columbia) and continued growth of this trend may change the face of farming in many ways, but one which stands out is closer ties with the consumer. Women will lead this change from commoditization and price taking to price alignment with quality. Look for encouragement in areas of research such as nutrient density. There is room for every farmer and that is what makes this industry tick. We will continue to honour past traditions like ranching but it will be data based with genomics, performance data, nutrient quality and alignment with the end-user. The horse and rider may be replaced or assisted by a drone with UHF real-time communication. Technology and science will be the drivers to enhance our social licence and entice consumers to our food. Industry will continue to find ways to draw folks to the counter with apps such as the AHDB app for meat buyers (U.K.) and The Roundup by Canada Beef. This tech-

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nology is enabling for all farms and all buyers and sellers regardless of size or volume. We will always need the feedyard and the large landholder. Intensive farming reduces agriculture’s overall footprint and allows for an increase in set-aside lands such as grasslands and forages that are huge carbon sequesters. Manure will once again be gold and further technologies in its use will emerge. Agriculture is the closest industry to zero waste that there is and when done right is the ultimate environmental complement — if not regenerator. This is our story and we need to tell it. In doing so, using the word “sustainable” will fall upon closed ears. Millennials — that huge and last vast buying group — are not swallowing our sustainable claims. They want full transparency. In other words, farming will be about what we do at this moment. So close to the action, data junkies and living with FOMO (the fear of missing out), the main buyer of food in this age needs constant proof and reassurance. In fairness, this is what companies such as Earls understands. To ask for certification is that piece of assurance that market research tells the restaurant that the consumer asked for or needs to feel secure. Remember, the food service guest is making a decision based on their core values and beliefs which are formed by the environment in which they live and the information that they have. A new area of information that is important to note is animal welfare and the interrelationship with human rights and welfare. These are massive targets for consumers and now carry the same weight as the discussion on GMO. These men and women want a food experience and are willing to take the time to ask about what they are eating, how it was raised and how the folks were treated in the process. This is our new reality and an opportunity for system-wide improvements. A cellphone, a huge list of connections, a great business plan, a mentor and reams of data will enhance future farming. Jobs will continue to increase in the agricultural sector and in 2020 the estimate is that we will need another 122,000 persons to fill the vacancies. The $50 billion that will transfer over in agriculture within the next two decades will go to the brightest and best in production and marketing. They will have a “feel” for the end-user and in many cases a direct dialogue with them. Access to market or to further value adding will be the ultimate objective on the farm. Like the millennial buyer, the millennial farmer won’t be force-fed or have any tolerance for poor connections or relationships. They will change up or move on. Past, present and future, we all carry the responsibility of growing food — the most honourable task on earth — for today and tomorrow. c Contact Brenda through her website: www.brendaschoepp.com. All rights reserved. Brenda Schoepp

www.canadiancattlemen.ca

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 CCA repo rts

By Dan Darling

support for Canadian beef producers

n May 17, the Canadian Cattlemen’s Association (CCA) enjoyed participating in a fundraiser for people displaced by the Fort McMurray wildfire. Conservative Party interim leader and member of Parliament for Sturgeon River — Parkland Rona Ambrose hosted an all-party barbecue fundraiser in the East Block Courtyard on Parliament Hill in Ottawa. Joining me to serve up beef on a bun and pulled pork were CCA Ottawa staff Brady Stadnicki and Claire Hafner, as well as Alberta Beef Producer chair and CCA director Bob Lowe. The CCA, Canadian Meat Council and Canadian Pork Council donated the meat served and all proceeds raised went towards the Canadian Red Cross relief efforts. It was a great way to show our public support for those affected. Earlier in May, the beef industry found itself on the receiving end of a tidal wave of public support. Beef producers work exceptionally hard to produce a quality, nutritious product from cattle raised with care and it is disheartening when ill-informed marketing campaigns diminish those efforts. As a beef producer myself, words cannot express the pride I felt when people responded by taking action on social media and made their passion for Canadian beef known loud and clear. I would like to take the opportunity to commend consumers for their overwhelming support of the high-quality, worldclass Canadian beef we work hard every single day to produce. On behalf of myself and the other producers operating Canada’s 68,500 beef farms, we really cannot thank you enough. The beef industry strives to do things right, as demonstrated by the Code of Practice for the Care and Handling of Beef Cattle, investment in research, and work done with veterinarians to ensure optimum herd health and animal care. We are transparent about how we raise cattle, but also understand beef production remains a bit of a mystery for those removed from agriculture. We also recognize that anti-animal agriculture activists and others routinely exploit that disconnect by spreading misinformation, particularly in social media. The CCA will continue to be transparent and work to dispel misinformation by promoting understanding and providing education on the sustainability of Canadian beef production. Positive messaging, such as how healthy rangelands not only provide forage for cattle, but critical habitat for native species, enhanced water conservation, and significant carbon sequestration, must be more widely shared. The aforementioned are among the environmental merits of cattle production that CCA outlined recently to the Federal Government’s Standing Committee on Environment and Sustainable Development in Ottawa. The standing committee will assess how federal protected

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areas, including national parks, migratory bird conservation areas, national wildlife areas, and other federal lands, are integrated to achieve the government’s international conservation targets and domestic legislative objectives. The CCA advocates collaboration between government and Canada’s beef industry in order to achieve common environmental and economic targets. For example, working together to find solutions for species at risk on agricultural landscapes will help to preserve biodiversity, while also avoiding regulations that negatively impact Canadian beef producers. The CCA also advocates for the support of research and agri-environmental programs, believing that these are some of the best investments to make. Trade and market access is important to ensuring unfettered access to key markets. With the Trans-Pacific Partnership (TPP) ratification process stalled during the U.S. elections process, we have impressed upon International Trade Minister Chrystia Freeland the need for a bilateral agreement with Japan. In April, CCA vice-president David Haywood-Farmer accompanied Agriculture and AgriFood Minister Lawrence MacAulay on a mission to Japan to underscore the importance of trade in this high-value market. The CCA travelled to Brussels in May to advocate for the resolution of long-standing technical barriers to ensure the Comprehensive Economic and Trade Agreement (CETA) benefits Canada’s beef producers. In an earlier trip to Brussels, I communicated the need to resolve these technical issues for Canada’s beef exporters directly to Minister Freeland, and we appreciate her support in stressing the importance of resolving these issues. The most significant issue to be resolved is that the EU has not yet approved all of the procedures used in Canadian beef production to ensure maximum food safety for consumers. Canada reduces the potential presence of harmful bacteria in meat production by using antimicrobial carcass rinses that have been approved by Health Canada and utilized by Canadian processors for years. Europe has recently approved some but not all of these rinses, hence the focus of our advocacy work. Also in May, CCA past president Dave Solverson travelled to Tijuana, Mexico for a trilateral meeting with leaders of U.S. and Mexican cattle producer associations. CCA met with leadership from National Cattlemen’s Beef Association, Nacional de Organizaciones Ganaderas, and the International Beef Alliance. The CCA had good interactions with the leaders and discussions focused primarily on trade. Trade continues to be a significant focus of the work of CCA, meanwhile, we are also adapting to an evolving social landscape that is more interested in our production practices than ever before. The CCA is making the most of this opportunity and will continue to reach out with relevant information to enhance and promote understanding. c

Dan Darling is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

 TH E IN DUST RY

NewsRoundup Associations Ryan Hurlburt wins LMAC auctioneering champion

Camaraderie and a chance to learn livestock selling from the best drew 29 auctioneers from points across Alberta through Quebec to the Livestock Markets Association of Canada’s (LMAC) annual auctioneering championships May 13 at Brussels Livestock, Brussels, Ont. It was standing room only for six hours straight in the house with a live feed to the adjoining tent as the auctioneers sold 2,400 head of cattle to buyers attending in person and on the DLMS and TEAM networks. Ryan Hurlburt of Saskatoon Livestock Sales bettered his third-place finish last year by claiming the 2016 championship. Reserve champion honours went to Kirk Goldsmith, Dryland Cattle Trading Corp, Veteran, Alta. Competition was keen and the judges went to the tie-breaking method to declare the runners-up. Third place went to Ryan Konynenbelt, Southern Alberta Livestock Exchange, Fort MacLeod, Alta. Albert Carroll, Ontario Stockyards Inc., Cookstown, Ont., earned fourth place and Tyler Slawinski, Gladstone Auction Mart, Gladstone, Man., took fifth. Jordie Waters, Foothills Auction Inc., Stavely, Alta. was declared most-improved

Ryan Hurlburt, auctioneer with Saskatoon Livestock Sales, won the 2016 LMAC champion auctioneer of the year.

auctioneer by judges Bob Miller Sr. of Kamloops, B.C., Craig Jacklin of VJV Ponoka, Ross Annett of Bow Slope Shipping Assoc., Brooks, Alta.; Bob Perlich, Perlich Bros. Auction Market, Lethbridge, Alta.; Jeff McSherry, McSherry Livestock, Inwood, Man.; and 2015 champion Calvin Kuepfer, Ontario Livestock Exchange, Waterloo, Ont. Kevin McArter of Brussels Livestock was recognized by a vote of his peers as the most congenial auctioneer and recipient of the Jim Raffan Memorial buckle. The championships attracted eight rookies,

those being auctioneers who have been selling cattle for five years or less, which bodes well for the future, says LMAC executive secretary Rick Wright of Virden, Man. This year’s top rookie was Ryan Konynenbelt. Michael Fleury of Saskatoon Livestock Sales is this year’s inductee into LMAC’s prestigious hall of fame. The Canadian Angus Association presented its stockyard of the year award to Cowtown Livestock Exchange, Maple Creek, Sask. Sponsorship, both national and local, was overwhelming for LMAC’s first-ever event in western Ontario, thanks in large part to Mark and Cindy Ferraro of Brussels Livestock, who did an outstanding job as co-hosts, Wright adds. Wright and Bryan Daynard of Strathmore, Alta., were re-elected as directors during the association’s AGM held at the nearby Oakwood Resort in Grand Bend. Serving the second year of their terms are Brock Taylor from Melita, Man., Jim Able from Stettler, Alta., and Kevin McArter from Brussels, Ont. The executive remains unchanged with Scott Anderson of Winnipeg Livestock Sales as president, Rob Bergevin of Stavely, Alta. as vice-president and Wright as executive secretary. Anderson says LMAC’s focus for the Continued on page 38

! ay d. tod ite ter lim gis is Re ting a Se

If it weren’t for the messages from some of the leaders I connected with, I wouldn’t have this clear vision nor the motivation to go after it. I can’t thank you enough for that. – Jen C., Ontario, AWC Delegate

LISTEN, LEARN, NETWORK & GROW Open your mind to the endless possibilities. Prepare to be inspired. Acquire the life skills you need to reach your goals. This conference could be life-changing. Register today! Visit advancingwomenconference.ca or phone 403-686-8407.

FAIRMONT ROYAL YORK, TORONTO, OCTOBER 3 & 4, 2016 www.canadiancattlemen.ca

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Advancing Women Conference EAST 2016 / Canadian Cattlemen National / 7” x 3.357”

News Roundup Continued from page 37

upcoming year will again be on seeing the Cattle Implementation Plan (CIP) for traceability actually implemented as agreed upon by industry and government during the 2011 traceability summit (Canadian Cattlemen, May 2016). He has the full backing of LMAC members who unanimously passed a resolution stating that LMAC not support regulatory change that makes it mandatory for markets, buying stations and assembly yards to scan cattle in or out. In fact, LMAC has the full support of other industry organizations on this as acknowledged by Canadian Cattlemen’s Association director of government and international affairs John Masswohl, Canadian Cattle Identification Agency chair Mark Elford, and Canadian Livestock Dealers Association president Ross McCall, who

participated in a panel discussion on traceability and the CIP following Wright’s formal presentation on this subject. Following two May meetings with CFIA representatives Anderson and Wright were holding out hope that the impasse between the industry and the regulator may be resolved. Both felt the government officials now have a better understanding of cattle marketing and how group movement manifests can provide all the information CFIA needs to track cattle into and out of auction markets. “We did see more willingness to come up with a solution and these meetings were the first indication from CFIA representatives that they will take our concerns to the upper level,” says Wright. Other convention highlights included presentations by Canfax senior analyst Brian Perillat, and technology providers Xcira and ViewTrak. The 2017 convention slated for May 11-13 will be hosted by Perlich Bros. Auction Market in Lethbridge. It will mark the 20th year of the national LMAC auctioneering championships and the Perlich family’s 50th year in business.

A link to the 2016 auctioneering championship videos is posted on the DLMS home page at www.dlms.ca/default.aspx.

management

We’re Hiring… five steps to get it right By Debbie Furber

Eighty per cent of employee turnover in the first year is the result of hiring and interviewing errors that in the long run can end up costing you a lot more than a departed employee’s annual salary. The most obvious cost is the time and money spent recruiting replacements. Then there’s the negative effect high turnover has on the morale and productivity of your other employees, not to mention the impression it leaves with your customers. These hidden costs may linger with your operation for years. Fortunately many of these hiring errors can be avoided, says Canadian Agricultural Human Resources Council (CAHRC) executive director Portia MacDonaldDewhirst. She was instrumental in developing the council’s online AgriHR Toolkit and offers some proven tips that will help

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N EWS ROU N DU P

you avoid this costly problem of job mismatches. “There are five key steps in the hiring process and it’s important to do the whole process well,” she says. Knowing what you are looking for is the starting point. If the position is fuzzy in your mind, it will come across that way to job seekers. Describe the position clearly so that potential employees reading your job ad will think, “yes, this is a job that makes sense to me and something I’d be interested in doing.” Next, figure out where job seekers are looking and advertise your job opportunities there. More and more these days people are looking online, but they may not happen across your company website so look for additional places to post your listing, such as an industry job board, online classifieds, Kijiji, Facebook and Twitter. The CAHRC’s AgriJob Match, a national job board with supporting tools for employers and job seekers, is expected to go live this summer. Recruitment agencies are another option, but don’t forget to look internally as well, she

The Steak For Soldiers Program was a great success!

Over 15,000 Steaks and nearly 10,000 Hamburgers were served to Soldiers and their Loved Ones at Shilo MB, Edmonton AB, Petawawa, Ont. and Val Cartier Que. over the last 5 years. The surplus was contributed to two Military Charities The SOLDIER ON FUND and MILITARY FAMILIES FUND A Big Thank you to the 627 donors of which over 97% were producers. Thank you to everyone who made this event successful. Sincerely, Harvey & Jackie Dann

Continued on page 40

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News Roundup Continued from page 39

adds. You or your supervisors may know of someone already on staff who might be interested in applying. It also never hurts to spread the word around through your networks of professionals, friends and family. Learn how to advertise effectively. A common shortcoming at this step is not putting much thought into making the position compelling. “Include clear details on what the position requirements are, but also think about what makes your business unique and interesting and the benefits of working there. At the same time, you need to balance exciting with realistic,” she explains. Now, you are getting down to the nuts and bolts of deciding who to hire and bringing the successful applicant on board. Streamlining your screening, interview-

PRESENTS…

ing and selection processes is important, not only for efficiency, but to make sure your decision is defensible. “Decision-making needs to be rooted in the job description — the tasks and responsibilities of the position and the knowledge and skills required — not based on favouritism, for instance, just because the person happens to be a family friend or you have common interests,” she stresses. Review every application against the job criteria to shortlist candidates most suitable for interviews. Treat everyone the same during the interview by interviewing them in the same place using the same interview process and the same job-related questions. “Consistency helps to avoid picking someone because he or she has good skills at being an interviewee,” she says. “Some people are verbally skilled and get you talking about other things. Before you know it, the interview time is up and you won’t have learned much at all about the person’s suitability for the job.” Most of the interview questions should be behaviour based because it’s a proven fact that past behaviour is the best predictor of future behaviour.

Behavioural-event interviewing is a researched method that goes beyond questioning on training and skills to help select a person with the experience and wherewithal to handle situations that are bound to come up. Avoid starting your questions with “what would you do if,” because people will likely guess at what they would do or tell you something they think you want to hear. Instead, start with “tell me about a time when.” Phrased this way, the person will most likely describe the situation, action taken and results. A scenario might follow along the line of “tell me about a time when you were faced with making a decision because nobody else was around.” Perhaps he or she recalls dealing with an irate customer and describes how listening to the customer had a calming effect, making it easier to determine what needed to be done to resolve the conflict. Applying this response to a ranch or feedlot situation would give you a sense of how that person would react in a similar situation. Take notes during the interview and allow time immediately afterward to go

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www.canadiancattlemen.ca

NEWS ROUNDUP

through them, jotting down additional points that could help in your final decision and support a defensible selection. Rate the candidate on each question before interviewing another candidate. Your rating system could be a scale from one to five with one being well below expectations, three being meets expectations, and five being clearly above expectations. Think hard about your expectations and how a successful candidate should rate. Were the expected indicators addressed? If not, did the missing points have to do with important job functions? Did the response leave you thinking that the person would be capable of doing the job? From the middle, work up and down the rating scale listing your general expectations for each level and leave room at the bottom to note your rationale. Each candidate will have stronger and weaker points, so you will really need to consider all of the answers on the whole in making your final decision. Summing up the selection step, MacDonald-Dewhirst says fairness and consistency in the shortlisting, interviewing and rating process, along with behaviouralevent interviewing will lead you to the top candidate for the job. This is the time to check references, starting with the person at the top of your list, or the top two if they are close on paper and in the interview. “Checking references is the single thing that’s left off the table most often,” she says. “It doesn’t take much time and you’ll be surprised what you can learn from past employers and with their candidness,” she says. Your search ends at step four, but be sure to complete the whole hiring process by having a plan for bringing them on board and follow through to make sure your new hire sticks. Overall, 22 per cent of staff turnovers across all job sectors occur within the first 45 days on the job. On the bright side, 60 per cent of new employees who receive support and orientation are more likely to still be with the organization after three years. On-boarding doesn’t have to be fancy or costly, but it does need to be timely. It begins the moment your new employee arrives to make sure their first time at your workplace is a positive experience. Little courtesies such as introducing the new person to everyone on the team and making sure he or she has someone to sit with at lunch will go a long way in making the person feel comfortable. Let your new employee know how to find resources and information needed to do the job and arrange to have a go-to person to help with questions as needed. Make www.canadiancattlemen.ca

sure the plan around job training is clearly understood, whether it’s as basic as required reading, more structure job shadowing, or formal workshops. You, your manager or supervisors need to make a point of checking in with the new employee frequently during the first couple of weeks and regularly for the first two or three months. Simply ask if everything is going OK and whether anything else is needed to be sure the new person gets as much help as possible.

Know what you don’t know

“People in agriculture are skilled at many jobs, but we always say it’s important to know what you don’t know, says MacDonald-Dewhirst. “If human resources is a weakness, don’t be afraid to put your hand up and say you need help. We are here to help. We have deep roots in agriculture, we work with the industry and we have developed meaningful Continued on page 43

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

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

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

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

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

 c) 45 to 54

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don’t like. There’s also some space for you to tell us what you would like to see in future issues. ClIp And enClose your mAIlIng lABel. each month, we will draw one name from all the surveys sent in and send that person a Cattlemen cap. It could be you!

What do you think of: On a scale of 1 to 5, how do you and your family like these features? 5 – I always watch for it; let’s see more of it 4 – I regularly read it and like it 3 – I usually read it 2 – There are things I’d rather read 1 – I don’t want it; get rid of it Regular Columns 5 4 3

Regular Columns News Roundup Purely Purebred The Markets

Market Talk Sales and Events

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

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12/6/07

News Roundup

11:09 AM

Page 1

Continued from page 41

human resource management tools based on what industry said is needed.” One of the most comprehensive resources for owners and managers in all walks of agriculture and food is the AgriHR Toolkit. It’s an online program that details the recruitment process, how to develop an HR plan, create a policy manual, effectively manage people, succession planning, set compensation and benefits standards, create training and orientation processes, ensure workplace wellness, and improve health and safety. It includes a sample HR policy manual that

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E OU TST

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1-800-661-7002 C a t t l e m e n · J U NE 2 0 1 6

 NEWS ABOUT YOU

By Mike Millar

PurelyPurebred Curtis Kuchinka, Levi Jackson*. Missing: Bryon Burnett, Rich Harries, Ross Macdonald*, Deb Niekamp, Kim Onrait. (*Directors elected to serve two-year terms.)

n Introducing the 2016 Canadian Western Agribition board of directors. Back row (l-r): Carla Schmitt*, Blake MacMillan (executive member at large), Bryce Thompson (executive member at large)*, Stewart Stone (president), Bruce Holmquist (vice-president), Reed Andrew (past president), Chris Lees (executive member at large)*, Barry Young. Front row (l to r): Marty Kratochvil*, Michael Latimer, Jodi Banks, Courtney MacDougall, Doug Fee*, Kim Hextall*,

n Charolais bull sales had a record year in 2016 with the highest overall sales average and total gross dollars in the 35 years the Charolais Banner has been compiling bull sale results. There were 89 sales reporting in 2016, seven more than 2015 with the overall average up $14 per head. There were 117 more lots sold and an increase in total gross dollars by over $820,000. Higher top prices than have been seen for decades. A bull of A. Sparrow Farms, Vanscoy, Sask., fetched $107,000 and one from Wilgenbusch Charolais, Halbrite, Sask. sold for $82,500. Helge By publisher of the Charolais Banner magazine attributes the increase to the strong demand from

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

the commercial industry to add the extra performance and hybrid vigour got from the Charolais bull. Also we have seen more white bulls going on black cows to produce more silver calves than ever before. n Candace By of Regina was elected as the secretary of Charolais International at the organization’s recent World Charolais Congress in Guadalajara, Mexico. Charolais InterCandace By national is the breed’s umbrella organization for 27 member countries. “The secretary role has never been outside of France before, so this will be quite a change,” states By, the managing editor of the Charolais Banner and Connection magazines. “It will be an honour to work for the group to implement some changes

n Following the wildly successful Bull Buyer’s Guide which has been helping purebred breeders promote and market their cattle programs and bull sales in the spring we have come up with a new initiative for the fall. This is the first-of-its-kind sale guide highlighting fall production sales with a female component across all breeds. Called the Replacement Female & Club Calf Guide, this will be set up the same as the spring bull guide but will promote fall production sales, shows as well as youth club calf events targeted to a western audience but representing the purebred market from across Canada.

C a t t l e m e n · J U NE 2 0 1 6

www.canadiancattlemen.ca

PURELY PUREBRED

as directed by the delegates of the AGM.” Charolais International president, David Benson, England, said, “I look forward to working with Candace to move the organization forward in promoting Charolais worldwide. Her dedication to the industry and efficiency in work and communication skills will continue to make her a great asset to the board and the breed.” n June is here and besides thinking about haying it’s also time to dust off your golf clubs and support T Bar C on its invitational golf tournament for agricultural youth. For over eight years T Bar C along with its generous sponsors have raised over $350,000 for national junior breed associations in Canada. This year a portion of the proceeds will be donated to the Canadian Western Agribition, Manitoba Youth Beef Roundup, Summer Synergy, Stockade Roundup and the Young Ranchman’s All Breeds Livestock Show, which all host interbreed events. This year’s event will be held on June 28 and 29 at Dakota Dunes Golf Links. Visit http://tbarinvitational.com/ for more information.

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n Visitors to the World Charolais Congress toured ranches, research facilities and exhibitions while networking, sharing ideas on improving and marketing the breed. Pictured here are the association managers (l-r): from U.S. (Neil Orth), France (Clement Perrodin), Canada (Mel Reekie), England (David Benson), Mexico (Gregorio Farias Mateos) and Australia (Colin Rex). n It’s full speed ahead for Doug and Linda Henderson on the new Canadian Angus Association’s Foundation history book, but interest has been expressed in the 1985 history book produced by Lloyd Pickard. The Canadian Angus Association would be grateful for any additional copies that members would Continued on page 46

Topics include: • Human Resources • Economics and Finance • Pasture Calculations • Grazing Management • Pasture Rejuvenation • Weed Control • Cell Designs/Water Systems • Swath Grazing/Bale Grazing

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C a t t l e m e n · J U NE 2 0 1 6

PU R E LY PU R E B R E D

Continued from page 45

ing its quick and easy-to-use web store and toll-free order desk with a tab for ordering approved CCIA radio frequency identification (RFID) beef tags for the Canadian Limousin Association and its membership. “We developed the tag web store two years ago to reduce third-party data handling, maximize data integrity and make approved tags available online for non-breed-specific beef cattle only. Now, we have a section customized for Canadian Limousin producers,” says CCIA general manager Anne Brunet-Burgess. “Canadian producers work smarter every day as they continue to supply world-class beef products. c

like to donate. These books will be auctioned to raise funds to produce the new history book as well as support the work of the Canadian Angus Foundation. To make a donation, please contact Belinda Wagner at bwagner@ cdnangus.ca or by phone 306-757-6133 or Tina Zakowsky at the CAA office. n The Canadian Junior Hereford Association will be hosting its Annual National Junior Show, Bonanza in Olds, Alta. August 9-13, 2016. Along with the Open Show, there will be competitions for open grooming and showmanship, bred and owned, semen donation, Hereford influence and a Jackpot Steer Show. As well there will be public speaking, art, literature, photography and team judging and team marketing competitions. The Canadian Hereford Association will again be hosting its annual meeting in conjunction with the CJHA National Bonanza on Friday, August 12, 2016. Please see www.hereford.ca/4_bonanza.php on the Canadian Hereford Association website for all the details.

n It was a tremendous day for Canadiandeveloped Speckle Park cattle as a new record was set at the Summit 3 Speckle Park Sale for the world’s highest-selling bull in the breed. River Hill 50T Crusader 025C, a son of River Hill Touchdown 50T, (shown here) achieved a valuation of $60,000 for 50 per cent interest and 100 per cent possession to the Crusader Syndicate of Minnamurra Pastoral Company, New South Wales, Australia; Sid and Anne Hollier, England, United Kingdom; Codiak Acres, Ardrossan, Alta., and River Hill Farm, Neilburg, Sask. For more details visit www.summit3sale.com.

Sales results Summit 3 Speckle Park Sale Ardrossan, Alta.

19 2 5.25 9 53.25

n The Canadian Cattle Identification Agency (CCIA) is pleased to strengthen its relationship with Canadian producers by customiz-

Extra-age bulls, av. $8,105 Yearling bulls, av. $9,069 Open heifers, av. $9,666 Total, av. $8,826

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C a t t l e m e n · J U NE 2 0 1 6

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 Market Su mma ry

By Debbie McMillin

TheMarkets Fed Cattle The contra-seasonal downtrend continues to create extreme volatility in the fed cattle market. Over the past several weeks cash prices in Canada dropped over $11 to $154.14/cwt in the first week of May before rallying back to $161.85/cwt by May 20. The cash basis strengthened into positive territory at the end of April with the U.S. cash dropping more quickly than Canada’s and the Canadian dollar adding some strength. By mid-May the cash-to-cash basis had widened to -9.71/cwt while the cash to futures basis widened to a more seasonal +2.40/cwt. Inventories in the May 1 Alberta and Saskatchewan cattleon-feed report rose eight per cent over May 1, 2015, to 914,144 head, still one per cent below the five-year average. Smaller feeder exports and concerns over moisture pushed up April placements by one per cent to 102,895 head, but with a notable increase in heifers compared to last year. Fed exports to date are up 40 per cent on the year at 124,650 head. Steer slaughter is up two per cent at 445,976 head while the heifer kill is down nine per cent at 296,723 head.

Feeder Cattle Volatile technical markets, unprofitable feedlots and a strengthening Canadian dollar have created a solid downward trend in the feeder market for most of 2016, although a small rally in the past two weeks brought feeder prices back to mid-April levels. 550-lb. feeder steers that dipped as low as $216.58/cwt at the start of May clawed back to $223.88/cwt in the first week and held on to $219.40/cwt in the second. The mid-May average is $100/cwt under last year. 850-lb. steers climbed from $170.81/cwt in the first week of May to $178.83 by mid-month in the face of poor feedlot margins and limited hedging opportunities. The 850-lb. feeder basis was -15.35/cwt at press time versus -19.74 last year.

Non-Fed Cattle D1, D2 prices remain in a contra-seasonal slump at a time when cows usually reach for spring highs. Instead the lows for the year to date were set as D1,2 cows slid below $100 in midMay to $99.60/cwt for the first time since March 2014. This was $47.82/cwt under last year and $10.98/cwt under the 2016 high set in January. Cow volumes at auction have been larger this year, and slaughter to mid-May is up 10 per cent at 152,016 head. Exports are virtually unchanged from a year ago at 71,910 head. Bull prices in mid-May were down $42.37 from last year at $125.41/cwt. Domestic bull slaughter is up 12 per cent at 4,550 head, while exports are down 27 per cent at 17,130 head. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

www.canadiancattlemen.ca

 DE B’S OUTLOOK Fed Cattle In the near term seasonal trends would suggest fed prices should start to decline into the sluggish summer months. Fundamentally, the supply of cattle is lighter right now both in volume and weight and the barbeque demand will help hold prices somewhat steady. Fed-cattle supply will increase throughout the summer as the fall-placed calves become market ready. Looking further out, larger year-over-year on-feed totals in Canada means larger front-end supplies through the fourth quarter. That coupled with a larger U.S. cow herd means increased U.S. beef production for 2016 to move through the North American pipeline. This, coupled with strength in the Canadian dollar, increased overall protein supplies, and high retail beef prices means we can expect a seasonal drop in prices through summer. Feeder Cattle Usually heavy feeder prices start to increase through the summer heading toward the yearling run. However, a long-term downtrend in fourthquarter live cattle futures, if not corrected, suggests limited positive movement in the near term. Recent rains may spur some support for grasser cattle in the coming weeks as pasture conditions improve across the prairies. Factors to watch this summer besides feed grain crops are the dollar, feedlot profitability and hedging opportunities for fall-run cattle. Non-Fed Cattle Dry conditions last month sent some late-bred cows to market, but recent rains should ease feed concerns and numbers are expected to decline as pastures improve. While volumes will be manageable, an increasing supply of market-ready fed cattle will be ample to meet a good demand for grinding and trim meats through the summer.

More markets 

C a t t l e m e n · j u n e 2 0 1 6 47

M A R K ETS

Break-even Prices on A-Grade Steers

Market Prices

210

340

190

310 280

170

250

150

220

130 110

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

160

210

160

190

140

170

120

150

100

130 110

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

Canfax weighted average price on A-Grade steers

Break-even price for steers on date sold

2016 2015

May 2016 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $173.90/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.73/bu. Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59.13/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 72.65/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . 102.89/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161.02/cwt Break-even (October 2016) . . . . . . . . . . . . . . . 146.00/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $170.88/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.84/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.73/bu. Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 74.80/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . 108.25/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148.79/cwt Break-even (November 2016) . . . . . . . . . . . . . 145.83/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

Steer Calves

190

(500-600 lb.) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

80 60

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

Ontario

Alberta

2016 2015

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

Market Summary (to May 7, 2016) 2016

2015

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . . . . 847,379. . . . . . . . . . . 861,059 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937 lb.. . . . . . . . . . . . . 877 lb. Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,623,000. . . . . . . 10,446,000

Trade Summary Exports 2016 2015 Fed cattle to U.S. (to April 30). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117,325.. . . . . . . . . . . 85,508 Feeder cattle and calves to U.S. (to April 30). . . . . . . . . . . . . . . . . 98,203.. . . . . . . . . . . 194,017 Dressed beef to U.S. (to March). . . . . . . . . . . . . . . . . . . . . . . 136.60 mil.lbs.. . . . . 127.35 mil.lbs Total dressed beef (to March). . . . . . . . . . . . . . . . . . . . . . . . . . 177.40 mil.lbs.. . . . . 168.91 mil.lbs IMPORTS 2016 2015 Slaughter cattle from U.S. (to March) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to March) . . . . . . . . . . . . . . . . . . . . 56.08 mil.lbs. . . . . . . 61.37 mil.lbs *Dressed beef from Australia (to March) . . . . . . . . . . . . . . . 26.39 mil.lbs. . . . . . . 16.80 mil.lbs *Dressed beef from New Zealand (to March) . . . . . . . . . . . 13.08 mil.lbs. . . . . . . 10.27 mil.lbs *Dressed beef from Uruguay (to March) . . . . . . . . . . . . . . . 19.23 mil.lbs. . . . . . . 21.05 mil.lbs Canadian Grades (to May 15, 2016) % of A grades +59% 54-58% AAA 19.1 24.6 AA 16.4 7.7 A 0.2 1.1 Prime 0.3 0.8 Total 33.3 36.9 EAST WEST

Total graded 208,892 677,301

Yield â€“ 53% Total 23.0 66.7 3.5 27.6 0.0 1.3 2.0 3.1 28.5 Total A grade 98.7%

Total ungraded 10,525 2,547

% carcass basis 82.5% 89.5% Only federally inspected plants

C at t l e m e n Âˇ j u n e 2 0 1 6

www.canadiancattlemen.ca

 market ta l k

By Jerry Klassen

Feeder Cattle Look to go Lower

anadian feeder cattle prices have been slowly trending lower since the historic highs were made during the early-fall period of 2015. Fed cattle prices in Alberta actually topped out in June of 2015; however, feeder cattle prices held up fairly well as finishing feedlot and backgrounding operations were quite optimistic in the latter half of 2015. It was only when fall-placed yearlings were marketed as fed cattle in winter that we started to see sharper week-over-week declines in the feeder complex. Those of you who have read my previous articles know that past history dictates that feedlots will need to experience one “full round” of negative margins before they start to price fresh replacements based on profitability in the forward positions. We are now at the time when fall-placed calves will be marketed as fed cattle, which is considered the “full round” of feeding. Therefore, feedlots will be extremely sensitive on replacement purchases as they work to recover the equity erosion over the past nine months. The risk-taking days are over and feedlots will only buy feeder cattle that can pencil a profit moving forward. I’ve received many inquiries in regards to the price outlook for feeder cattle from both cow-calf producers and feedlot operators. I felt this was an opportune time to discuss the market factors that will dictate the price of feeders during the summer and fall period. First, I think it is important to remember the 2015 U.S. calf crop was 34.3 million head, up 0.8 million head from 2014. Without going into details of projected cow slaughter and heifer retention, the 2016 calf crop is expected to experience a similar increase. Also, U.S. feeder cattle outside feedlots as of January 1, 2016 were 25.916 million head, up 1.3 million head from January 1 of 2015. Many of these cattle have moved off small grain pasture resulting in a year-over-year increase in on-feed numbers through spring and summer. Compared to last summer, the U.S. feeder market is contending with larger supplies and sharply lower prices. This environment has resulted in lower feeder cattle exports to the U.S. Canadian feeder cattle exports to the U.S from January 1 through April 16 were 80,900 head, down 52 per cent in comparison to the same time last year. However, the 2015 Canadian calf crop was 4.3 million head, down from 4.6 million head in 2014. We’ll probably see a marginal increase in Canadian cattle births in 2016 given the higher retention rates and expansion activity. In declining markets, the fed cattle futures generally lead the cash trade lower which makes it difficult for feedlots to hedge or forward contract profitably. This is because the futures market is factoring the sharper increase for beef www.canadiancattlemen.ca

production whereas feedlots are basing feeder cattle purchases on past fundamentals from the previous round of feeding. The early-fall period will be the lowest price for fed cattle as restaurant and retail demand moves through seasonal lows. At the same time, U.S. third-quarter beef production is projected to reach 6.455 billion pounds, up almost 400 million pounds from the third quarter of 2015. You have to look back to 2012 to find production at similar levels. This will weigh on the fed and feeder cattle markets as the negative margins may continue into this time. Beef production marginally decreases in the final quarter of 2016 but is expected to drop to 6.0 billion pounds in the first quarter of 2017. The April live cattle futures could factor in the lower production levels thereby allowing feedlots to lock in profitability.

eedlots will be extremely F sensitive on replacement purchases as they work to recover the equity erosion over the past nine months The feed grain complex will continue to be extremely volatile through the summer but there will be downward pressure during harvest. Statistics Canada increased barley acres and if average yields materialize, the carry-out for 2016-17 will be near the 10-year average so we should see the market move to 10-year average prices near $200 in Lethbridge. At the time of writing this article, 850-pound steers were selling in the range of $180 to $185 in Western Canada while heifers of similar weight were $20 discount. We could see prices drop an additional $25 to $30 from current levels; however, I believe when 850-pound steers are hovering in the range of $150 to $155, this will likely be the lows of the market in the fall period but prices will remain rather stagnant for the remainder of 2016. Feeding margins may not be in negative territory but will be extremely snug. c Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd., and is president and founder of Resilient Capital specializing in proprietary commodity futures trading and market analysis. He owns farmland in Manitoba and Saskatchewan but grew up on a mixed farm feedlot operation in southern Alberta. He can be reached at 204-504-8339.

C a t t l e m e n · J U NE 2 0 1 6

 GOINGS ON

Sales&Events Events June

13-14 Saskatchewan Stock Growers Association annual convention, Conexus Arts Centre, Regina, Sask. 14-16 Beef Improvement Federation Conference, Manhattan, Kansas 16-17 6th Annual UCVM Beef Cattle Conference, Deerfoot Inn & Casino, Calgary 17-18 Canadian Charolais Association annual meeting, Edmonton, Alta. 21 Western Beef Development Centre Field Day, Lanigan, Sask.

July 7

orthumberland Cattlemen’s 22nd N Annual Beef Day, Stirling, Ont. 7-10 Quebec Junior Beef Show, Brome, Que. 8-9 Beef Youth Development Program, Lindsay, Ont. 8-17 Calgary Stampede, Calgary, Alta. 11-15 Summer Synergy, Olds, Alta. 13-15 Alberta Beef Producers Semi-Annual Meeting, Edmonton, Alta. 13-16 Colonial Days, Lloydminster, Sask. 15-17 Ontario Trillium Classic, Metcalf, Ont. 17-22 International Rangeland Congress, Saskatoon, Sask. 19-21 Ag in Motion — Western Canada’s Outdoor Farm Expo, Langham, Sask. 20 Livestock Gentec Field Day, Roy Berg Research Station, Kinsella, Alta. 20-21 Beef Farmers of Ontario summer meeting, Pembroke, Ont. 21-24 Canadian Simmental Association annual meeting and YCSA National Classic, Lloydminster, Alta. 27-30 Medicine Hat Exhibition and Stampede, Medicine Hat, Alta. 29-31 Manitoba Youth Beef Roundup, Neepawa, Man. 29-31 Canadian Junior Limousin Association Annual Impact Show, Lloydminster, Alta.

North Battleford, Prince Albert, Swift Current, Weyburn 21-28 International Limousin Congress, Ireland 22-27 World Simmental-Fleckvieh Congress, Poland

September 7-8

ntario’s 9th Annual Cow-Calf O Roadshow 13-15 Canada’s Outdoor Farm Show, Canada’s Outdoor Park, Woodstock, Ont. 23-25 Maritime YCSA Classic, Windsor, N.S.

October 3-4

dvancing Women Conference, A Fairmont Royal York Hotel, Toronto, Ont.

November

4-13 R oyal Agricultural Winter Fair, Toronto, Ont. 11-13 Farmfair International, Edmonton, Alta. 15-17 Canadian Forage & Grassland Conference, Winnipeg, Man. 21-26 Canadian Western Agribition, Regina, Sask. c

STAMPEDE

By Jerry Palen

 A DV E RT IS ER IN DEX

Advancing Women Airdrie Trailer Sales Alberta Beef Industry Alberta Vet Labs Beef Cattle Research Council Canada’s Outdoor Farm Show Canadian Angus Assoc. Canadian Charolais Assoc. Canadian Gelbvieh Assoc. Canadian Hereford Assoc. Canadian Limousin Assoc. Canadian Shorthorn Assoc. Canadian Simmental Assoc. Case-IH Cattlemen’s Financial Corp. Cows in Control Marketing Group Elanco Animal Health Genex Cooperative, Inc. Gilbrea Consulting Ltd. Greener Pastures Ranching Ltd. Hi-Hog Farm & Ranch Equipment John Deere Masterfeeds LP Merial Nester Livestock Real Industries Steaks for Soldiers Titanium Manufacturing Tru-Test Inc. Zinpro

STAMPEDE

Page 37 43 23 9 45 IBC 42 OBC 42 42 42 43 43 5 43 42 11 17 42 45 43 15 19 IFC 13 33 39 42 39 7

By Jerry Palen

August

4 Saskatchewan Pasture Tour, Harris, Sask. 4-7 Alberta Wild Rose Classic, Lacombe, Alta. 9-11 Canadian Beef Industry Conference, Grey Eagle Resort, Calgary, Alta. 9-13 Bonanza 2016, Burning the Hereford Brand, Olds, Alta. 11 Canadian Hereford Association Annual Meeting, Olds, Alta. 14-16 AJAA Junior Show, Bashaw, Alta. 20 4-H Saskatchewan Centennial Rallies,

C a t t l e m e n · J U NE 2 0 1 6

“I can’t get out! I lost the operator’s manual. Which knob do I pull? Which button do I push?!”  Event listings are a free service to industry.  Sale listings are for our advertisers. Your contact is Mike Millar at 306-251-0011 or mike.millar@fbcpublishing.com

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