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VERIFIED SUSTAINABILITY IS COMING THE BEEF MAGAZINE

MARCH 2014 $3.00 WWW.CANADIANCATTLEMEN.CA

A TRUCKER’S Laurin Dreher, Weyburn, Sask.

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MEMORIES PLUS

Genomics hits the ground 32 Sharpen your HR skills 38

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

Contents CANADIAN CATTLEMEN · MARCH 2014 · VOLUME 77, NO. 3

 T R A N S P O RT

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Laurin Dreher wraps it up after 2.4 million miles.

A TRUCKER’S MEMORIES  M A R K ET I NG

FEATURES

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

A trucker’s memories. . . . . . . . . . . . . . . . . . . 12 Common pitfalls with semen evaluations . . . . . . . . . . . . . . . . 15

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.

Droplets: A common defect in young bull evaluations. . . . . . . . . . . . . . . . 16

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

Cattlemen is published monthly by Farm Business Communications.

Head office: Winnipeg, Manitoba. Printed by Transcontinental LGMC. Cattlemen is printed with linseed oil-based inks.

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How I receive grass cattle . . . . . . . . . . . . . . 18 Front load the heifers . . . . . . . . . . . . . . . . . . .20

Verified sustainability 24 is coming This is more than a buzzword today.  B R E E D I NG

Genomics hits the ground . . . . . . . . . . . . . . 32 Sharpen your human resource skills . . . . 38 Verified Beef Production . . . . . . . . . . . . . . . 43

Comment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Circulation inquiries: Call toll-free 1-800-665-1362 or email: subscription@fbcpublishing.com U.S. subscribers call 1-204-944-5766

Newsmakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Our History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Member

Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

LIVESTOCK PUBLICATIONS COUNCIL

Our commitment to your privacy: At Farm Business Communications we have a firm commitment to protecting your privacy and security as our customer. Farm Business Communications will only collect personal information if it is required for the proper functioning of our business. As part of our commitment to enhance customer service, we may share this personal information with other strategic business partners. For more information regarding our Customer Information Privacy Policy, write to: Information Protection Officer, Farm Business Communications, 1666 Dublin Avenue, Winnipeg, MB R3H 0H1. Occasionally we make our list of subscribers available to other reputable firms whose products and services might be of interest to you. If you would prefer not to receive such offers, please contact us at the address in the preceding paragraph, or call 1-800-665-1362.

Verified sustainability is coming . . . . . . . . 24

DEPARTMENTS

PRINTED IN CANADA

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

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

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Vet Advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Genomics hits the ground

32

Congratulations!

Prime Cuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 Research on the Record . . . . . . . . . . . . . . . . 36 Holistic Ranching . . . . . . . . . . . . . . . . . . . . . . . 40 Straight from the Hip . . . . . . . . . . . . . . . . . . . 42 CCA Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 News Roundup . . . . . . . . . . . . . . . . . . . . . . . . . 45

To our March survey winner, Cecil Haney, Kenora, Ont. This month’s survey is on page 46.

Purely Purebred . . . . . . . . . . . . . . . . . . . . . . . . 52

Cover Photo: Our photo is supplied by Dreher Livestock

Sales and Events . . . . . . . . . . . . . . . . . . . . . . . 58

The Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Market Talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

C AT T L E M E N · M A R C H 2 0 1 4

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 COMMEN T

By Gren Winslow

McDonald’s wants verified sustainable beef Fortunately we are well set up to supply it

H

ow does a term like “sustainability” become an international trend with the power to move multinational companies?

Having just had a short brush with the bare droughtblighted pastures of California and the concrete of L.A. I can understand why Hollywood types would feel the world is in dire shape. But selling sustainability to people who make their living on the land is a bit like telling a hockey player he has to learn how to skate.

Sustainability is a given for farm people, isn’t it? — particularly those who depend on grass and native or tame forages to raise their cattle.

At least that was what I used to believe. There was a time my eyes would fog over whenever the term sustainability came up in meetings, as I waited for the speaker to move on to real world problems.

Not anymore. When your biggest customer tells you that he will only be buying sustainable beef and sets a deadline to begin, it tends to sharpen the focus. The fact that McDonald’s is interested in beef sustainability is not news. The company has been heavily involved in setting up the Global Roundtable for Sustainable Beef (GRSB) since 2011 along with Cargill, JBS and several other multinationals.

Now McDonald’s is committing to begin purchasing verified sustainable beef by 2016.

There was a time when that announcement would have sent shock waves through the industry seeing McDonald’s purchased close to 70 million pounds of Canadian beef last year. In fact, this news barely caused a murmur in Canada, largely because the industry, spearheaded by the Canadian Cattlemen’s Association, has been preparing for this day for some time now.

As McDonald’s Canada’s manager of sustainability, Jeffrey Fitzpatrick-Stilwell says in this issue, “I believe today we are purchasing lots and lots of sustainable beef.”

The trick, he says, is to find a way to verify the sustainability of those purchases. And that’s where Canada should shine because of the number of the tools to ensure sustainability that is already in place.

The CCA became a member of GRSB and spearheaded the formation of the Canadian Roundtable on Sustainable Beef so it would be at the table when a final definition of what constitutes sustainable beef is decided a little later this year.

The Canadian beef industry’s own sustainability tool chest is divided into three categories: social, economic and environmental.

In the social box we have the newly revised code of practice for the care and handling of beef cattle (www. nfacc.ca/codes-of-practice/beef-cattle) and the Canadian Beef Cattle On-Farm Biosecurity Standard, all

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backed by the latest research available, much of it done in Canada. There is also a network of federal and provincial animal care legislation on the books to deal with those who don’t live up to their responsibilities.

Economic sustainability is what consumes most people’s time and is determined somewhat by market forces beyond anyone’s control. It has also consumed a good deal of the time and money available to producer organizations in efforts to reduce the cost of production.

Here I’m thinking of all the producer-funded research that has gone into reducing winter feeding costs and improved nutrition and animal health. I suppose we could toss all the time and effort put in by industry and government to gain greater access to foreign markets in this envelope as well.

There was a time my eyes would fog over whenever the term sustainability came up… not anymore

Environmental sustainability is where the stewardship of cattle producers should shine. Efficient grazing management, protection of riparian areas, living in harmony with wildlife, these are a sample of the ways cattle people preserve and protect the environment. The annual environmental stewardship awards presented each year in every region of the country are just a way of shining a spotlight on these efforts.

Measuring all this may only be a matter of ensuring that everyone lives up to the standards that most people follow anyway. If McDonald’s requires more, the CCA’s Verified Beef Production program would be a place to start. In a nicely timed move Ottawa recently put up the money to add on-farm training modules for biosecurity, animal care and environmental stewardship in addition to the regular food safety course.

Nearly 18,000 beef operations have already had VBP training representing 89 per cent of the feedlot production in Alberta and 59 per cent in Saskatchewan, and somewhere around a third of the cow-calf production.

A much smaller number is registered operations, again heavily weighted to the feedlot sector.

In years of shrinking checkoff revenues the people at the head of these organizations should be credited with not losing sight of the importance of sustainability. c

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 THE INDUST RY

NewsMakers Cow-calf operator Bob Gordanier from Dufferin County is the new president of Beef Farmers of Ontario. He is a first-generation farmer who operates a cow-calf forage-based operation near Orangeville with Bob Gordanier his son Andrew. Matt Bowman, a cow-calf operator from Temiskaming is vice-president.

Other elected directors are cow-calf producer Gerald Rollins of Renfrew County, feedlot operator Joe Hill of Wellington County; backMatt Bowman grounder Rob Lipsett of Grey County and eastern director Rick Hobbs of Ottawa.

Delegates to the annual meeting voted to raise Ontario’s checkoff by $1 per head.

Dr. Peter Kotzeff of Chesley is the recipient of the 2014 Ontario Environmental Stewardship Award, sponsored by the RBC Royal Bank. Kotzeff, who is also a veterinarian, operates a 1,800-acre farm in Bruce County, 700 of it in forages. He is preserving a number of riparian properties by providing alternate water sources through the use of wells and ponds, and fencing off a number of waterways. He pastures anywhere from 500 to 1,000 head of cattle per year, intensively grazing paddocks from 50 to 300 acres in size for three to five days with a minimum of 45 days’ rest.

Paula Larson, a cowcalf producer from D’Arcy is the new chair of the Saskatchewan Cattlemen’s Association.

Joining her on the executive is vice-chair Larry Grant of Val Marie, Paula Larson finance chair Harold Martens of Swift Current, member-at-large Ryan Beierbach of Whitewood, and past chair Mark Elford of Wood Mountain.

Melinda German is the new general manager of the Manitoba Beef Producers. German comes to MBP after serving as the

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director of the Livestock Knowledge Centre for Manitoba Agriculture.

She holds a master of science from the University of Saskatchewan, specializing in beef animal nutrition, and grazing and pasture manageMelinda German ment. She replaces Cam Dahl who resigned in February to become the first president of Cereals Canada, a new organization that aspires to offer a national presence for the cereal sector.

Brenda Robertson and Neil Showers from Grey County are the 2014 recipients of the Ontario Pasture Award sponsored by the Beef Farmers of Ontario, MAPLESEED and the Ontario Forage Council. They farm 60 acres of pasture and 30 of hay in the municipality of Chatsworth with the goal of grazing 72 to 80 head per year with intensive grazing.

Page Stuart of Vegreville has been elected chair of the Alberta Cattle Feeders’ Association. She is well known in the feedlot community from her many years in research and management with Highland Feeders and Page Stuart Lakeland College. She is currently a senior animal health sales associate. Leighton Kolk, a feedlot operator from Iron Springs is vice-chair.

Brent Chaffee of Strathmore remains on the executive as past chair.

The remaining direcLeighton Kolk tors are: Jason Hagel, Swalwell; John Lawton, Niton Junction; Lyle Miller, Acme; Mike Sears, Nanton; Ryan Kasko, Coaldale; John Schooten, Diamond City; Curtis Vander Heyden, Picture Butte; Jeff Warrack, Strathmore; Keith Ypma, Taber and Martin Zuidhof, Lacombe.

Shannon Lyons has been appointed manager of communications with the Alberta Cattle Feeders’ Association and the National Cattle Feeders’ Association. She is responsible for internal and external communica-

tions and media relations. Originally from Banff, Alta., Lyons is also a freelance writer and editor, with a formal education in public relations, digital publishing and design.

Heinz Reimer of Steinbach is the new president of the Manitoba Beef Producers. Ben Fox of Dauphin is first vicepresident and Bill Murray of Makinak second vice-president. Ramona Blyth of MacGregor is Heinz Reimer secretary and Theresa Zuk of Arborg remains as treasurer. Producers at the Manitoba Beef Producers’ annual meeting in February approved an increase in the provincial checkoff from $2 to $3 per head.

Richard and Kristylayne Carr of Rich Lane Farms, Marchand are the 2014 recipients of the Manitoba Environmental Stewardship Award. The Carrs started their farm from Richard Carr scratch and built up a business selling grassfed beef, pasture poultry and pasture pork. They have partnered with the Seine-Rat River Conservation District to implement riparian area and off-site watering projects, bale grazing and Kristy-layne Carr rotational grazing.

Manitoba Beef Producers presented its first lifetime achievement award to Betty Green last month. Betty was president of the Manitoba association during the BSE crisis, sat on the Betty Green boards of the Canadian Cattlemen’s Association, the Canadian Animal Health Coalition, and Manitoba Rural Adaptation Council and worked on the West Hawk Lake Zoning Initiative. She and her family run a beef operation near Fisher Branch. c

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Letters Using snow to water cattle

I’m reading all I can about bale grazing. Many times, ranchers (say) they don’t give water to cattle and there’s no problem with that. Do you agree? Is it possible to winter cattle only with snow with no negative effects? You could answer me by an article in the Cattlemen magazine. By the way, I appreciate your articles because they are based on facts!

Guillaume Barrette, St-Edmond-les-Plaines, Que. Reynold Bergen, the science director of the Beef Cattle Research Council answered Guillaume’s question.

Some beef producers do use snow as a water source for part of the winter. These are typically producers who use stockpiled pastures, swath grazing, or bale grazing. On winter pastures, the cattle often need to push through snow to get to the feed. The snow gets on the feed, and so the cattle eat some snow with the feed. The snow melts in the rumen, and provides water to the animal.

Section 2.2 / page 12 of the new beef code of practice talks about using snow as a water source (http://www.nfacc.ca/pdfs/codes/ beef_code_of_practice.pdf, or http://www.nfacc.ca/pdfs/codes/ bovins_de_boucherie_code_de_pratiques.pdf).

It is possible to use snow as the water source for cattle, under certain conditions: 1. You need to have snow! Snow on the other side of the fence is not good enough… the cattle need to be able to reach it.

2. The snow needs to be clean.

3. The snow needs to be loose; cows can’t eat snow that is frozen solid or crusted over.

But there can be serious problems when relying on snow as a water source, especially when you or your cattle are new to this program, and/or when the weather doesn’t co-operate. Here are some critically important things to remember: 1. Check your cattle often, regardless of how you manage them in winter. If they are standing by the gate bawling, there is a problem. If they’re hungry, they may be out of feed, or may not be getting enough water. If they are losing body condition, they need better or more feed. They also need to have access to natural or man-made shelter and/or bedding.

2. Cows often need some time to learn how to eat snow (or graze in winter), so keep a very close eye on them.

3. The cow uses heat energy from the rumen to melt the snow, so their energy requirements will be higher.

4. Feed quality needs to be adequate if you are using snow as a water source (see point 3).

5. Don’t use snow as the sole water source for thin cows, nursing cows or young, growing cattle. The extra energy demands (see point 3) will be extra hard on them.

Snow is not always a reliable water source. It is not always there, it is not always clean, and sometimes it is frozen too hard for cattle to eat. So if you are using snow as a water source, you need to watch your cattle and snow conditions very closely. Dehydration will kill animals a lot faster than starvation, so animal welfare concerns can develop very quickly. So you also need a plan “B” — how will you get water to the cows (or the cows to water) if the snow runs out, gets trampled in, or freezes over?

On a related note, holes chopped in an ice-covered dugout or pond can also be a risky water source. The ice may be thick and strong enough

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to support a few cattle. But if the hole freezes over and isn’t reopened soon enough, thirsty cattle may crowd onto the ice. Their combined weight may cause the ice to break, ending up with drowned cattle.

Ask your provincial beef extension experts, nutritionist and/or veterinarian for advice before you start using snow as a sole water source. They may have some specific advice for your part of the country, and may be able to put you in touch with other producers in your area who have had practical experience and success with this management approach.

Do you have a question? The BCRC will do our best to get you the best answer available. Feel free to send your question to Gren (gren@ fbcpublishing.com) or contact the BCRC at info@beefresearch.ca.

Snow works for me

Heifers on snow for one month.

In the January issue a letter was printed that suggested that using snow as a water source for cattle is not acceptable. My cattle have been on snow for a portion of the winter for at least 10 years. During this time, I have selected for cattle that do well on snow, just like I have selected for cattle that can endure our brutal winters.

I have a few suggestions to ensure you have success using snow as a water source. If you are just starting your herd on snow, do it for one month the first year. You will soon see the cows that don’t do well on snow. Also, train your replacement heifers by putting them on snow for one month their first winter. (I have included a picture of some of my replacement heifers that have been on snow for a month.) Any heifer that does not learn to lick enough snow to meet her needs should be shipped. In the fall, after calves are weaned, chop ice for your cows until there is about six inches of snow, and then turn the cows into a pasture with stockpiled forage where they do not have access to a dugout. As the cows graze, they will consume plenty of snow. This gets them used to relying on snow to meet their water needs. When you start feeding hay, they will be used to snow and will not spend much time searching for a water source. Make sure you have a large area for the replacement heifers and cows. I winter about 15 replacement heifers in a four-acre pasture using portable windbreaks. The cows are fed twice a week in an 80-acre pasture with lots of bush, and the feeders are moved onto fresh snow at each feeding. My cows are on snow from the time there is enough on the ground until at least the middle of January.

There are several advantages to using snow as a water source for cattle. It allows you to graze and feed in fields that have no other water source. It reduces the danger for cattle on the dugout ice as they fight for water from the holes you have chopped. If you have cows walking a long distance to water, it gives cows an alternative water source. Also, if you have a major problem with your well or watering bowl and are shut down for a couple of days, your cows will do just fine on snow.

When I was growing up, I was taught that horses do well with snow as a water source, but cows do not. I, along with many other producers, have proven that that is not true. The key is approaching it properly with the right type of cattle.

Tom Treen, Preeceville, Sask. c

www.canadiancattlemen.ca

CRAPSmar14.indd 1

2/17/2014 11:46:26 AM

 OUR HISTO RY

CANADIAN EMBARGO Reprinted from the Sept. 1947 issue

F

rom cattlemen and their organizations comes an insistent query, “When will Ottawa permit us to ship our cattle to the United States?” That question must be answered unequivocally by the Dominion government. It had authority to take away the right of private export; it has the authority to restore it. Logic now dictates that the Canadian restriction on private exports of cattle to the United States should be removed.

When control of industry and prices became necessary during the war and when Mutual Aid and Lend-Lease were operating the cattleman who had voluntarily surrendered his right to private export raised no objection. He pointed out from time to time that he thought the southern market should be serviced with small shipments to keep trade channels open — other Canadian industries were permitted to do that — but he never did and never will agree to an indefinite suspension of one of his basic rights, namely to market his product to his natural market or to any other market he desires.

The United Kingdom market, shorn of sentimental considerations, is an uneconomic one for Canada’s cattleman. With high production costs and heavy transportation charges he can never hope to

compete with low-cost countries such as Argentina, Uruguay, Brazil and Australia.

The United Kingdom contract entered into by the Dominion government without consultation with the industry’s organizations serves to channel Canadian beef to a market which may prove in the long run to be disastrous to one of Canada’s basic industries and detrimental to Canada’s national economy.

Cattlemen have found that costs of practically all items used by them have risen with no corresponding rise in cattle prices permitted. Many of the items used, ranging from trucks, cars, haying equipment through to citrus fruits are purchased from the South at U.S. prices and on a free economy in which grass steers are readily selling for 25 cents per pound. Canadian ranchers are obliged to pay these prices with 12-cent steers.

Today Canada is confronted with a shortage of U.S. dollars brought about by an adverse trade balance. Defeatists are advocating the short-sighted policy of restricting imports from the United States; others see the necessity of increasing exports.

Some government advisers have stated that the United States does not want Canadian cattle. This is untrue. The United States position is clearly stated in the following from a high official of the U.S. Department of State.

“With regard to the department’s attitude toward the importation of Canadian cattle, it is our desire that all wartime controls be ended as soon as the purpose for which they were imposed cease to exist. This is in accord with our commercial-policy objective of an expanding international trade open to private enterprise on a competitive and non-discriminatory basis. The Canadian government has expressed a similar attitude. Therefore, if the Canadian government should be willing to allow the exportation of cattle to the United States, the department would have no objection. Cattle imported into the United States would, of course, be subject to import duties as modified under the Trade Agreement Act.” Recently persistent inquiries have been received from the South and especially from California for feeder cattle. The embargo placed against imports of cattle from Mexico because of foot-and-mouth disease in Mexican herds has deprived American feeders of half a million head of cattle per annum. They are anxious to purchase the healthy northern feeder cattle. Opportunity lies ahead for the Canadian cattlemen but this opportunity may be realized only if the Dominion government removes its present embargo on shipments to the South. The time for action is now when fall marketings are commencing and heavy supplies are in prospect. c

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 COVER STO RY · T R A N S P O RT

By Debbie Furber

A TRUCKER’S MEMORIES

2.4 million accident-free miles was enough for Laurin Dreher

T

he new year marked a milestone for Laurin Dreher who retired after 2.4 million accident-free miles transporting livestock from his home base, Dreher Livestock at Weyburn, Sask., to points across the western provinces, east into Ontario and south as far as Texas and west to Oregon and Washington.

He so enjoyed Canadian Cattlemen’s December heritage issue that friends nudged him to give us a call about memorable times in the livestock transport business during his 20 years as a commercial hauler of cattle, horses, pigs and bison.

“I didn’t get off to such a good start,” Dreher says. “When I was 10 years old I saw a picture in the Eaton’s catalogue of a little black calf in a little red wagon. Well, I had a little red wagon and we had little black calves on the farm near Bromhead, but my first run didn’t end up like the picture at all.

That was my first and only wreck!”

He started hauling in the local area in the 1960s with his half-ton truck fitted with box rails and moved up to a three-ton with box rails before taking a few years off to pursue other interests. He returned to drive for local companies, including Powers Livestock, Adventure Livestock and most recently, the Holdstocks with R R Brady

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Transport. During those years, the industry moved from 48-foot to 50-foot vans, or liners, then to 53-foot tri axles. The smaller liners had spring ride systems, but the air ride on the tri axles was a big improvement for drivers and cattle alike.

“Cattle walk out fresh even on a long haul 1,800 miles into Ontario. With lots of bedding, they are so relaxed that some will even lay down,” Dreher says. He’d stop every three or four hours to check his load and get the cattle back on their feet because they would stiffen up if they rested laying down the whole way. Parking sideways to the breeze to get a cooling effect on longer stops also helped to keep cattle fresh on long hauls.

Today’s cabs and sleepers are far more comfortable with conveniences such as air seats and Sirius satellite radio, which meant he could say goodbye to the stash of tapes he carried along for the long stretches of countryside where regular stations don’t come in. Other technology, like GPS driving directions, didn’t work so well for rural destinations.

He always ran his own truck while working for the other companies and in 2003 established Dreher Livestock, adding a second and third tri axle. Though he was fortunate to have great drivers, the

logistics of keeping three trucks on the road meant he spent more time organizing than doing what he loved the best — hauling cattle.

Granted, there would have been far less worry hauling other agricultural cargo or dry goods, but he has ready reasons for favouring livestock, especially cattle. “I grew up with cattle and was familiar with their behaviour, the money was good, and there were no side hauls. I’d be there and back in three or four days, instead of being gone for two or three weeks at a time,” he says.

The busiest week on his record started with loading feeders on Sunday morning at Weyburn for Gruver, Texas. He was back home by Wednesday morning to load feeders bound for Hartington, Nebraska, returning Friday, to load for a jaunt to Liberal, Kansas, logging a grand total of 6,100 miles in eight days. Back at home, he lightheartedly reminded the company that he ran a freightline not an airline!

The change in log book regulations around the early 2000s made it a lot better for hauling cattle because after 36 consecutive hours off duty the log book went back to zero, though drivers are still limited to 70 hours driving time in eight days.

Continued on page 14

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#13, 4101-19th St. N.E., Calgary, AB, T2E 7C4 Tel: (403) 250-7979 Fax: (403) 250-5121 Email: cansim@simmental.com Website: www.simmental.com

T R A N S P O RT

Continued from page 12

Hauling dairy cattle is unique because there are lots of stops to milk the cows morning and night. The seller and buyer arrange all the milking points so his job was to get them there on time. A haul from Ontario to the Edmonton area required three stops in Ontario, one in Manitoba, and another in Saskatchewan before making it through to their destination.

Most of his 2.4 million miles were made during daylight hours, except hauling from auction markets during the fall runs when as many as 20 trucks would be waiting to

load after sales wrapped up. Oftentimes that would be well into the evening and even later before he’d be loaded and ready to head out.

Wait times at U.S. customs have been greatly reduced from up to an hour in the office filling out paperwork, to a short stop since the ACE (automatic central entry) system was introduced. The electronic form with details about the licences and load is filled out in the home office after the cattle have been loaded. It’s sent off to U.S. customs about two hours ahead of his arrival at the border crossing, where employees pull it and his passport picture up on the com-

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puter when he checks in. With everything in order, he’s on his way in no time.

He can’t begin to count the times he has helped rookie drivers at the border during those long stops, often with paperwork, but also with some basic know-how, such as not hopping into the liner with a load of bulls!

“You never know what cattle will do when they are in a liner,” he says. Many young drivers today don’t have the benefit of a farm background.

His most vivid memories have to do with nature — sometimes the wonder of it all and other times its fury. He missed the Alberta flood of 2013, but came across a similar scene west of Grand Forks, North Dakota, when 17 inches of rain had fallen in one night and was still flowing across the highway when he arrived the next day. The U.S. army was at the site working to constrain the washed-out rail bed.

A March storm that raged for 10 days from Saskatchewan to Colorado left snow cuts along both sides of the highway that towered above his liner. Cattle losses in the wake of that storm tallied up to more than 30,000 head.

Though weather forced the occasional shutdown, luck was with him to make it to a truck stop each time. The longest holdover was a full day and night, in which case there’s absolutely nothing that can be done but to keep the cattle safe and sound on the liner. If the community happened to have an auction market where the cattle could be safely unloaded and contained, regulations require that they be fed and watered.

Fighting winter weather, storms and poor road conditions are his main reason for calling it quits. He attributes his admirable safety record to knowing when to pull over to get some rest — that’s what the sleeping compartments are there for, he adds. Driving has always been enjoyable and relaxing ever since he learned to drive back on the farm. He acknowledges as well, the fellowship and support of the Holdstocks and will miss the cattle people he’s come to know through the years.

“The most beautiful sight in all my years on the road was travelling through the mountains near Twin Falls, Idaho, one December 31 under a full moon,” he recalls.

“It was so bright reflecting off the mountains on both sides of the road that I turned off the lights for a few miles.” His grandson, who was 10 at the time and along for the ride, still remembers the trip, which was a much better experience than Dreher’s when he was the same age. c

www.canadiancattlemen.ca 2/11/14 1:00 PM

 breeding

By Roy Lewis DVM

Common Pitfalls With Semen Evaluations And how to avoid them

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n the past 32 years of semen evaluating bulls I have come across many tricks of the trade to make this procedure run smoothly.

Every situation is different and every set of bulls unique so most of these points involve common-sense observations that I have made over the years.

Collecting an adequate semen sample from a bull that is hard to stimulate is a common problem. More often than not the rectal probe is too small so there is not enough contact between the probe and the urethral muscles. This is especially true in very large bulls. You can often increase the amount of contact simply by lifting up on the back of the probe as the bull is being stimulated. This pushes the front of the probe down onto the muscles. This extra contact usually results in more of the penis protruding from the sheath so it is also easier to detect any warts, cuts or a frenulum (tie-back) that needs to be addressed.

A very small percentage of bulls are still unresponsive to the ejaculator. If it is deemed that they are still worth testing they can be bred to a cow in heat and have your veterinarian draw the semen out of the vagina using a pipette. This semen will be mixed with the cows vaginal mucous so its motility will be slowed a bit when your veterinarian examines it. Generally bulls that are hard to collect or resistant to the electro ejaculator will repeat this behaviour in subsequent years so mark that down on the semen form.

A bull going down in the chute is another common difficulty. It seems to happen more often with the quiet showtype bulls so leaving their heads free with only light squeeze restraint or tying their head up with a halter may help keep them up. But usually placing a bar or post behind the bull is enough to keep him secure and standing long enough to collect a sample.

This is especially true of large herd bulls.

Confinement in a sturdy alley may be easier than trying to hold their heads in a headcatch. As a safety measure I will often have a bar behind them in case they get their head free. In hydraulic chutes I leave the back door slightly closed so if they pull their head free they won’t back over me.

I find certain breeds such as Angus and

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Simmental are easier to stimulate. In fact I have to watch I do not overstimulate these bulls, or do it too quickly. Ejaculators with automatic settings may need to be put on manual so the stimulation can be increased gradually. This is where experience can yield great benefits. When the penis does not protrude the bull is difficult to stimulate and many will ejaculate in the sheath but it is still possible to get the sample. Just stop the stimulation and massage the sheath, then collect the semen as it runs out. These bulls will have to be observed at their first breeding to make sure there is no physical impairment. Your vet may want to tranquilize them to make sure the penis can protrude.

ven in experienced E hands some bulls will fail because they should

On rare occasions you may come across bulls that consistently urinate in the sample. In these cases I have found some rest (say one hour) followed by quick stimulation often results in a successful collection.

Again, these bulls will often repeat this trick in subsequent tests.

Stagnant semen, which means it has a high percentage of dead sperm, can show up in bulls during winter or whenever they are not actively ejaculating. In a pen of bulls it is more common among mature bulls. In particular the greatest incidence seems to be found at either end of the pecking order. My theory is the dominant bulls have nothing to prove so don’t ride and the least dominant bulls are the ones being ridden. In either case ejaculation does not occur and the semen becomes stagnant.

These bulls may need to be ejaculated two to three times in succession to get this old semen out of their system. Subsequent sample quality should improve drastically if this was the only problem.

Veterinarians can often tell if a sample is stagnant or not by the type of sperm cell defects they find. They may also want to retest when the defect numbers are too high. A good management tip is to have cycling cows close by before semen testing to get the bulls more active.

Only minute amounts of electricity are used to stimulate bulls so any disruption in this current can ruin the process. One sensible precaution is to regularly clean the electrical ends on the probe and replace them when they become worn.

An experienced veterinarian gives you the best opportunity for a successful evaluation but even in experienced hands some bulls will fail because they should.

What you want is to ensure that each bull is given the fairest test possible. c

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 breeding

By Roy Lewis DVM

Droplets: a common defect in young bull evaluations

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attle producers often question semen evaluation forms for young bulls that report a lot of proximal and distal droplets.

They cause frustration because the bulls must be retested.

Droplets are probably the most common defect seen by veterinarians when performing breeding soundness exams in the spring.

We see more droplets on average in young immature bulls just reaching sexual maturity. They are less sexually active and droplets are a frequent occurrence, especially when the bulls are not housed close to cycling females.

Proximal droplets appear as a swelling at the junction of the head and tail of the sperm.

Distal droplets appear farther down the tail.

It’s important to realize that all sperm start with a proximal droplet as they mature in the epididymis, the little knob at the bottom of the testicle. Generally the droplet is shaken down and eventually sloughed off as the sperm matures and wriggles its way through the canals of the epididymis. Sperm with droplets are essentially not mature so fertility is affected.

When we look at distal droplets there are essentially two types: those severely affected (pathologic) and those that will eventually be shaken off, producing a mature sperm cell (physiological).

Dr. Jacob Thundathil of the University of Calgary faculty of veterinary medicine found that the percentage of droplets in ejac-

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ulated sperm goes down as semen is chilled and ultimately frozen for artificial insemination. This takes about three hours.

If we assume the same thing happens in natural breeding as the sperm is swimming up the vagina and into the uterus a number of these distal droplets would be shaken off and left behind. As a result distal droplets are not as serious a defect as proximal droplets.

Samples with a large number of proximal droplets are often associated with other sperm defects such as deformed heads.

Droplets are usually the reason young bulls fail their first semen evaluation, especially if it is done at a young age. This is why we recommended beef bulls not be tested before a year of age (18 months for bison as they mature much later).

At 12 months old only half the bulls pass a semen test but that increases to 75 per cent by the time they are 14 to 15 months old. Many will pass only one or two months later.

Unfortunately veterinarians can’t predict which ones will improve faster than others so the only thing to do is retest them. In my opinion you can speed up the process by housing these young bulls close to cycling females so they are encouraged to ejaculate their older semen.

Veterinarians document morphological defects on the semen form so you can follow any improvement over time. I remember one young bull that had nearly 100 per cent proximal droplets on the first test but

the percentage kept dropping over the next several months until he eventually was producing excellent semen as a two year old.

He was a show bull so the question always comes up, was he too fat, inactive etc.

When veterinarians encounter a lot of droplets in mature bull semen, which is rare, they usually assess the other defects to determine the overall prognosis, remembering that proximal droplets are a more severe defect that distal droplets that may be shed before the sperm contacts the egg.

If most of the defects in a young bull are distal droplets and he still passes his semen test, meaning defects overall are less than 30 per cent, then there is a very good chance those defects will lessen with maturity and usage.

Over the years bull sale dates have remained largely the same yet purebred producers are calving later which means veterinarians are testing younger and younger bulls.

If you are selling off the farm consider delaying the test until the bulls are as mature as possible. It is much better to evaluate bulls just over a year of age during warm spring weather with cows cycling nearby than in the dead of winter. Even one to two weeks older makes a big difference.

The pass rate will be higher and it will be easier on everyone including the bulls.

Don’t ask your veterinarian to try evaluating bulls at less than one year of age. It’s to your benefit to wait, and the bulls. c

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2014-02-12 11:40 AM

grazing

By Steve Kenyon

How I Receive Grass Cattle

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retty soon the grass will be jumping and I will be busier than a one-legged man at a butt-kicking contest. Fortyfour miles of perimeter fence and 38 miles of electric cross fence to check and repair. Water pumps, electric fencers, mineral tubs, posts, wire, a chainsaw, and my summer cologne — a mix of bug spray and sun block. I know spring is just around the corner.

If you did not already know, I’m a custom grazier. The cattle are booked and my grazing plans are done. It will soon be time to train a new set of yearlings for my grazing season. The quicker I can get them trained, the easier my job is. It does not happen with every herd but if possible, I like to get the animals in early and feed for at least a week. This allows me to get them well trained to electric fence and well trained to love me. With custom animals coming in, you never know what you are getting. This also spreads out the spring rush a bit. Instead of having all my herds arrive and need training on the same week when the grass is ready, I can spread this out over a month and train one herd at a time.

I have learned from my mistakes and now when I am receiving a new set of yearlings, there are certain steps that I like to follow. Cowcalf pairs are another story.

Let me run you through a typical day when receiving grass cattle. I try to plan to have access to the loading chute rain or shine. My advantage is heavy-duty, self-standing portable panels. I can set up a strong corral system just about anywhere. I try to set it up close enough that if the trucks can’t get into the pasture because of rain, we can still unload off the road by adding a few more panels.

Once the cattle have settled down in the coral, I can move them into the training area. You will know when they have settled when they are content and some may be lying down The training area is a very visible pen with an electric wire around the perimeter. It could be a barbed wire fence with a hot wire offset, or a three- or four-wire electric fence. In many cases it is just one of my watering areas. It just has to be strong and highly visible.

Inside the training area, I like to have water and a bale or two to give them something to eat. I let them into this about 50 at a time.

This way they all have plenty of room to explore and be “educated” to the electric fence and not bunch up.

In this pen I will introduce them to my training cans. I attach empty aluminum pop cans to the wire around the training pen to help speed up this “education.” You punch a hole in the bottom of the can and run a wire through it. The wire and can is then attached to the electric fence. This makes a shiny object that moves with the wind that just begs the livestock to sniff.

In some cases I have a one-wire educational fence inside the training pen as well. This is a strong one-wire electric fence similar to the cross fences they will see out in the pasture. It dead-ends so they can get around it within the training pen. They just learn they can’t go through it and to visually recognize it. I may put coloured ribbon on this fence and on the electric fence in the pasture if I am concerned that the pasture fence is not very visible.

I get credit as the “good guy” by calling the cattle into the training pen to food and water. They have been on a truck for a few hours

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Training cans are shiny objects that move in the wind and just beg livestock to sniff.

and are hungry and thirsty. This is the first step to getting my girls to fall in love with me. It works best if I can leave them in the training pen for at least an hour.

From there the group is moved into the first grazing paddock or the paddock with bale grazing. Here they see the typical electric cross fence that they will deal with during the grazing season. I like to have the cross fence lead out away from the gate. This way when I open the gate and call them out, they run parallel to the electric fence. They have a better view of it and are less likely to go through it. If you turn them out and the electric fence is perpendicular to how they are running, the first few see it but the cattle running behind blow right through.

The first paddock might have two wires but after that, I only use one-wire fences. If I can strip graze down the first paddock, this helps the cattle quiet down and get used to the fact that I am the hand that feeds them. I call them every time I move the fence to get them familiar with my call. One day of moving them every couple of hours sure makes less work for the next few months. They learn quickly to come when I call.

The sooner they fall in love with me, the easier my job is. Within a week of the cattle arriving, I am able to pull them out of any area with just one unit of labour by calling. This comes in handy when a gate gets left open by quaders and the cattle are in the neighbour’s wheat field. It happens sometimes. I’m like the pied piper, they love me.

During the next few weeks I also train them to the sound of the horn as well because later on they get into some larger paddocks and the horn is easier on my vocal cords. Best wishes. c Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www.greenerpasturesranching.com, 780-307-6500, email skenyon@greenerpasturesranching.com.

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 manage m e n t

By Debbie Furber

Front load the heifers It builds up breeding momentum

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reeding replacement heifers to calve at least 30 days ahead of the cows isn’t just a good idea — it’s a must to give them a fighting chance at rebreeding in time with the main cow herd and establish reproductive momentum for the years to come.

“Mother Nature and math leave very little room for error in a breeding program,” says Dr. John Campbell, head of large animal clinical sciences at the Western College of Veterinary Medicine in Saskatoon.

“The best nature can do with a perfectly fertile cow and perfectly fertile bull in a single mating is 60 to 70 per cent (conception) and that’s better than most other species,” he says. Other limits nature imposes are a gestation length of approximately 282 days and a delay in the return to estrus after calving, which makes cows with suckling calves

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physiologically unable to rebreed. This period of anestrus is typically 50 to 60 days for cows and 80 to 100 days for heifers.

That’s a minimum of 332 days and as many as 382 days already taken out of a reproduction cycle that only gives 365 days for cows to stay on track delivering a calf at approximately the same time every year.

If heifers calve with the cows, they’ll be behind the 8-ball to rebreed on schedule, whereas, calving 20 to 40 days ahead of the cows will give them the extra time they need to return to estrus before the start of the breeding season for the main herd. Ideally, they should deliver their second calves during the first 21 days of the next calving season.

Campbell offers a strong economic case for front loading the breeding season so at least two-thirds of the herd calves during the first 21-day cycle.

Sucking calves gain about 2.5 pounds a day, therefore, a calf born in the first cycle will have about a 50-pound advantage at weaning compared to a calf born during the same stage of the second cycle, and a good 100-pound edge over calves born during the third cycle.

That’s a lot of money left on the table if you typically sell all of your calves at weaning.

In effect, there’s a big dollar difference between a 95 per cent calving rate with 65 per cent of the calves born in the first cycle, 25 per cent in the second and five per cent in the third compared to the same calving rate with a 40-40-15 distribution.

Again, Mother Nature and math limit a herd’s ability to do much better than 65-255, given the conception rate of 60 to 70 per cent in a single mating.

Assuming a conception rate of 60 per cent for a 100-head herd and all cows

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management

cycling at turnout, 60 would conceive in the first 21 days. Twenty-four of the remaining 40 should conceive during the second cycle and 10 of the last 16 in the third with six open at the end of the breeding season.

“That’s if everything goes right, but it seldom happens that way,” Campbell says.

“There are lots of reasons why that could be, but of all things related to fertility, it comes down to two: a cow must have a heat cycle and she has to conceive, so the bull must be fertile. Sometimes we forget that and look for more complicated reasons.”

Most of the time, failure to cycle is nutrition related and that’s why there is so much focus on body condition scoring (BCS).

During the first trichomoniosis outbreak at a community pasture in Saskatchewan Campbell says cows with a BCS of 2.5 or better were two times more likely to be pregnant than those with lower BCS. The research is equally convincing. In a new paper based on her original study with 200 herds in Western Canada Dr. Cheryl Waldner at the University of Saskatchewan found cows scoring less than five on a ninepoint BCS sale were less likely to be pregnant than those scoring five or more. Those scoring less than six were more likely to abort.

Today’s recommendation is to feed cows and heifers to achieve a BCS of 2.5 to 3.0 (out of 5.0) by the beginning of breeding season. This generally means sorting to feed

them through the winter because the high demand of lactation makes it almost impossible to improve BCS significantly between calving and the start of breeding season.

“Imposing poor body score makes the math harder and building reproductive momentum just won’t happen,” Campbell says. If the reproduction cycle loses momentum, it can take years to catch up because cows that calve later tend to get behind a little more each year until they drop out of the herd. Add disease or poor bulls to this mix and it could

add up to a wreck that spells economic disaster for a producer.

Any way you look at it, fertility is of prime importance and can’t be sacrificed, regardless of feed costs. “Yes, we always have to be conscious of feed costs, but when we look at the economic models, reproduction is still the most important measure that affects profitability of a cow-calf operation. It’s still better to have a light calf than no calf, but even average reproductive performance can cost significantly.” c

 breeding

To promote reproductive momentum: • Breed heifers 30 to 42 days ahead of the cow herd.

• Weigh heifers at weaning and establish target weights for breeding.

• Consider pre-breeding palpitation to identify non-cycling heifers.

• Consider an estrus synchronization program • Ensure body condition scoring is part of your normal practice and sort cows accordingly.

• Be sure to feed test and feed the heifer and cow groups accordingly.

• Monitor BCS on a regular basis when using extended grazing systems.

• Reduce the chance of a wreck by implementing an effective vaccination program, establishing biosecurity measures, and having all bulls undergo breeding soundness evaluations. www.canadiancattlemen.ca

C at t l e m e n · M a r c h 2 0 1 4

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 marketi ng

By Debbie Furber

Verified sustainability is coming This is more than a buzzword today

S

ustainability is one of the 10 most used business words today, elevating it to buzzword status of “green” and “eco-friendly.” It has also reached the point where cattle producers can no longer ignore it, even if they still don’t know what it means.

In February at the Manitoba Beef Producers annual meeting McDonald’s Canada’s manager of sustainability, Jeffrey Fitzpatrick-Stilwell outlined how the company’s plan to purchase verified sustainable beef by 2016 might unfold.

“McDonald’s made a global announcement that by (December 31) 2016 we are committing to purchase some amount of verified sustainable beef from somewhere,” he said. “I want to add a lot of caution on that. At this point, we don’t know what verified sustainable means. We don’t know what sustainable means. We have a lot of ideas about where it will likely lead us and obviously, the verification piece is key to us.

There’s a lot of learning ahead.”

Fitzpatrick-Stilwell wouldn’t be surprised if the global company decides to start in Canada because they have been impressed by the initiatives already underway in Canada.

This isn’t a new venture for the company.

McDonald’s joined with the World Wildlife Fund (WWF) in 2008 to make a commitment to sustainable land management.

WWF did a “deep dive” through McDonald’s global value chain and identified beef, poultry, coffee, palm oil, fibre (packaging) and fish as priority areas where McDonald’s has the biggest sustainability impact.

“We won’t be starting at zero,” says Fitzpatrick-Stilwell. “I believe today we are purchasing lots and lots and lots of sustainable beef. Once we define sustainable beef and have the key performance indicators in place and start using programs that are already collecting data, I am really confident that in Canada the vast majority of beef we are purchasing is sustainable beef. You guys know what you are doing. You have multi-generational operations, so clearly, it’s sustainable.

We just need from our end a way to verify it.”

Defining sustainability for a global industry as diverse and broad as beef is a challenge when it gets down to the sustain-

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C at t l e m e n · M a r c h 2 0 1 4

Dr. Kevin Ellison, World Wildlife Fund ( l to r); Jeffrey Fitzpatrick-Stilwell, McDonald’s Canada; Cherie Copithorne-Barnes, CL Ranch and chair of the Canadian Roundtable for Sustainable Beef.

ability triple bottom line — environment, economic and social.

The Global Roundtable for Sustainable Beef (GRSB) likely needs another six months to reach a consensus definition. Established in 2012 by WWF, McDonald’s, Cargill, JBS, Elanco, Merck, Walmart and Solidaridad the roundtable has since taken in other organizations such as the Canadian Cattlemen’s Association (CCA) and spurred the creation of a Canadian Roundtable for Sustainable Beef (CRSB). Groups like the CRSB help ensure any best management practices identified by the global roundtable are workable in the Canadian environment.

Fitzpatrick-Stilwell says McDonald’s Canada remains committed to 100 per cent Canadian beef without fillers and additives in its patties. In 2013 it purchased a record amount, close to 70 million pounds from Cargill, its national supplier.

McDonald’s feeds 2.5 million Canadians and 64 million people worldwide every day.

So the company has plenty of opportunities to engage with consumers, something other sectors in the value chain don’t enjoy.

Clearly, sustainability of the beef industry is critical to the company’s own sustainability.

“Consumers, governments and NGOs (non-government organizations), are very clear on what they want us to do and what they want us to take action on, but

we aren’t the experts. We need producers to tell us how best management practices work, what makes sense in one part of the country and not the other and why some practices that seem counterintuitive to someone sitting in an office in the city do work,” Fitzpatrick-Stilwell says.

When asked if McDonald’s intends to go down the hormone- or antibiotic-free route, he says he always goes back to this being producer led. “Even if 100 per cent of our customers want us to do something, but we learn it’s not the right thing to do, I am confident as a global system and certainly McDonald’s as a Canadian system is not going to go down any route that producers tell us is not the right way. We will do what science tells us is the right thing to do. Even before it got to that stage of 100 per cent, we’d be using our connection with them to help them understand that’s not the way.”

He urged beef producers to use McDonald’s and the fact that the company sees 2.5 million Canadians every day. “If there is a message we should be delivering, use us because we are willing to use our platform to tell the truth.”

Environment

Kevin Ellison, a grasslands ecologist with the WWF’s Northern Great Plains (NGP) Program based in Bozeman, Montana,

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marketing

acknowledged there will be trade-offs in finding a balance between efficiencies necessary to feed a growing world population and the need to conserve wildlife habitat.

The NGP program’s main focus is “keeping grasslands green side up.” Vast areas of deeded and public grasslands spanning 180 million acres across five states into southern Alberta and Saskatchewan are managed by individuals and that’s why the program works with ranchers to develop programs that will sustain ranching and sustain wildlife.

“We can do a lot better job working together, realizing that both of us have a lot of knowledge to share toward what we both want — keeping the green side up,” Ellison says.

“It will take a lot of thinking about it, a lot of modelling, a lot of different tools to look at different solutions to the problems,” he says. “Public perception is going to trump anything that an individual knows or feels strongly about. Regardless of how good you think your strategy is, if what you are doing doesn’t match the public perception of what you are doing, you’re going to have real problems.”

While communication and transparency can go a long way in managing people’s perceptions and solving some of the problems with the public, ultimately, it will take objective science to iron out issues enough for the public to accept it.

Social

On the heels of accepting the position of chair for the Canadian Roundtable for Sustainable Beef, Cherie Copithorne-Barnes’ inaugural speech focused on why social acceptance is important to the sustainability of her fourth-generation ranch.

Located just west of Calgary, CL Ranch is a seedstock and commercial cow-calf operation with a backgrounding lot and grain farm encompassing 28,000 acres, largely leased from the Crown, First Nations and family members. The farm is now outnumbered 30 to one by first-generation residents in the area who work and socialize in the city.

“They’ve paid to live there and to have a pristine landscape. They feel every right to lead and they go to politicians and bureaucrats to explain. Ranchers don’t and the fact is, by not going to our county and to our communities to explain our situation and to communicate what we do and how, we are doing ourselves a disfavour,” Copithorne-Barnes says.

She told several stories of how quickly land-use and property rights issues at the www.canadiancattlemen.ca

county and provincial levels have come to bear on the social sustainability and ultimately the economic sustainability of her ranch. Some have worked out in her favour because she showed up to be heard.

She took another lesson from companies such as A&W and Sobeys, that toured the ranch to learn how cattle are managed.

Though both companies’ promotions took surprising twists, she realizes that all they were really doing was listening to their customers.

“They know what customers want well ahead of what we see coming down the pipeline. We need to become more current on how we communicate our individual situations,” Copithorn-Barnes says. “You might think the public won’t come knocking at your door, but the reality is our supply chain is starting to feel that pressure. Ultimately, we are going to see what it’s going to be like to produce verified beef.” c

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C at t l e m e n · M a r c h 2 0 1 4

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 Nutriti o n

By John McKinnon

A MidTerm Checkup for Your Feeding Program

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or cattle feeders this is a great time of the year.

Cattle are well into their feeding program, health issues are in the rear-view mirror and your nutrition program is running flawlessly. If you are wondering what world I live in, you are right. Life is never this simple. However, with current profitability in the feeding sector, it is easy to take day-to-day management for granted. The following is a checklist to help you fine tune your feeding program and ensure cattle are performing to expectations.

The first question to ask relates to performance expectations. Are they being met? At this point cattle should be gaining at expected levels whether that is 1.5 to 2.5 pounds per day for backgrounding cattle or 3.5 pounds or better for finishing cattle. Short of gate running part of a pen to get check weights, it is not easy to judge how cattle are gaining, particularly when you see them every day. However, one sure sign of poor performance is low and/or variable feed consumption. At this point dry matter intake expressed as a percentage of body weight for yearlings should be in the range of 2.2 to 2.5 per cent, depending on the ration and length of time on feed. Similarly, cattle on finishing rations should be eating at 2.0 to 2.3 per cent of body weight unless they are close to market weight. If intakes are significantly lower than these values, it is a good bet that gains and conversions are poor and it will pay you to look for cause and effect.

Related to the above, is your roller mill stealing your profits? Poor/variable intakes are often a function of inconsistent grain processing, in particular overprocessing which results in excess fines in the ration. These are very small grain particles that tend to accumulate at the bottom of the bunk and are dynamite when fermented in the rumen. The result is cattle going off feed for a day or so and if the problem persists, variable intake patterns develop. Conversely, too much whole grain simply goes through the cattle undigested and results in poor feed conversions. Monitoring the efficiency of your roller mill can be one of the most cost-effective management practices you implement.

Monitoring the moisture content of silage is another important aspect of an effective feeding program. Many of us take for granted that the moisture content of silage in November represents the silage throughout the winter. Unfortunately this line of thinking does not apply.

Different fields, varieties, suppliers and resulting variation throughout the pit all lead to variation in silage moisture content. You need to be on top of this varia-

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tion to ensure your rations are formulated to correct forage-to-concentrate ratios and nutrient levels. Make it a practice to monitor your silage moisture weekly — it is not difficult!

How accurate is your ration mix? The first related question is have you had your feed tested, particularly your forages? This is the only way to ensure that your rations are balanced for the appropriate levels of energy, protein, calcium, phosphorus, etc. and thus to ensure that nutrient requirements are met for desired performance. Other steps include running efficiency tests on your feed wagon and reviewing your protocol for sequencing, loading and mixing ingredients. Issues with under- or overmixing are more common than you think!

Are you seeing stiff cattle in the pen? In my experience this is an indication of one of two nutrition-related issues. The first is grain overload. At some point during the feeding period you have overloaded the cattle with too much grain, the result is laminitis or stiff cattle. These animals are hard to get up and move, have overgrown hooves and are chronic poor doers. The second is due to a dietary calcium deficiency. The difference between the two is that correcting the calcium deficiency will reverse the issue while cattle that are “burnt out” never fully recover.

Is your implant program current? Cattle implanted last fall and not reimplanted are running on empty. In other words the original implant has paid out and is no longer providing any performance benefit. If you are planning on keeping the cattle for any significant time, reimplanting with an appropriate implant will keep the cattle gaining in an efficient manner.

Similar comments apply to feed additives such as ionophores, antibiotics or repartitioning agents. These products are included in the ration at defined levels for specific reasons (i.e. feed efficiency, disease prevention, carcass quality). Issues with mixing efficiency, ration moisture content, forage-to-concentrate ratio all impact the actual concentration of these products in the total mixed ration. Attention to detail as indicated above will ensure appropriate dietary concentrations.

Finally, while not specifically related to nutrition, perhaps the most important question to address relates to your current cost of gain. Everything looked great in the fall, but what has happened since to the value of the dollar, feed and cattle prices, labour and yardage costs?

While this past winter has been favourable for feeding cattle, there is no excuse for not being current and reacting to these issues. c

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

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 vet aDv i c e

Still a Long Way to Go

A

number of recent agriculture publications has questioned whether or not we are approaching the biological limit of individual animal production. The big question: How might this influence long-term sustainability of the cattle business?

To think our industry might be approaching biological limits to how fast a feedlot steer grows, how efficiently it converts feed to meat, or the limit as to how many kilograms of calf a brood cow can produce year after year seems daunting, especially when we are constantly reminded that the industry’s future rests with its ability to meet the growing demand for animal protein by building on efficiency.

One researcher goes as far as to say that finding another Secretariat in the beef industry isn’t in the cards.

Examples cited that cracks are beginning to show include ambulatory problems in cattle on finishing rations, the appearance of foot and leg problems in cattle on pasture, the fact there is no credible evidence suggesting the average weaning weight per calf has increased in the last 10 years, and the view shared by many researchers that beef cow productivity is stagnant. Work in the U.S. looked at performance numbers for the periods of 1991-99 and 2005-09. From the first period of time to the latter one, average weaning weight declined 36 pounds, average calving rate declined 1.3 per cent, and average pounds weaned per cow exposed — a product of the other two measures — declined 25 pounds.

Tom Field, director of the Engler Agribusiness Entrepreneurship Program at the University of Nebraska reminds us that, “We haven’t made dramatic improvements in reproduction in any species without increasing inputs, which works when inputs are cheap, but what happens when interest rates increase to 10 to15 per cent, or corn prices move from a historic average of $2-$2.50 per bushel to more than $7 per bushel?”

In my view we don’t need to worry! Even if science might be closing in on what is biologically possible with the domestic cow, the potential to get better is huge.

Consider an August 2012 report from the Council for Agricultural Science and Technology that examined agricultural production relative to land and water use.

The report points out that beef production increased 72 per cent from 1961 to 2003, while chicken and pork production increased 198 per cent and 143 per cent, respectively. Milk production increased 126 per cent.

Take into consideration some of the simple things this industry needs to look at, things like: • The number of cows exposed to bulls in the breeding field compared to those weaning a live calf in the fall.

• The number of cows that fail to conceive.

• The number of calves that die between birth and weaning.

• The number of producers who neglect to manage length of the breeding season and, over time, the impact it has on the calving season.

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• The significant percentage of weaned calves that require treatment for respiratory disease as they enter feedlots despite improved weaning and vaccination programs.

• The number of producers who do little about controlling BVD and Johne’s disease.

• The long-term effects of the undernourished beef cow.

An often-neglected facet of infertility is the seven per cent of cows that become pregnant, but fail to calve or fail to wean a calf. Open and late-calving cows remain the most costly factor in beef production and run on average 10 per cent in most herds. On many ranches, only 80 calves are weaned per 100 cows in breeding herds. Then there is the negative impact of cows that calve late in the calving season.

Pre-breeding nutrition remains high on the list of factors that affect conception rates followed by bulls that are not in condition to breed, or are reproductively unsound.

Bull-to-cow ratios on most pastures should be 1:25, a number often not met.

It doesn’t take long to calculate that the beef industry may be running on about 75 per cent efficiency, and has for many years. Add to that the vulnerability that becomes inherent when an industry fails to diversify markets and expand its customer base, and the constant issue of quality — the 15 per cent of steaks that fail to provide an enjoyable eating experience. Getting better at what we do now includes incorporating growing consumer interest not only in meat quality, but how food is produced.

The “new kid on the block” is fetal programming. A concept that more closely links what the brood cow experiences during pregnancy and performance of her progeny down the road will change management practices in beef production. Recent research provides evidence that the maternal environment of the fetus during early development, especially nutrition, can override the genetic blueprint to affect future performance.

Over the last 20 years, a rapid change in technology, science and consumer activism has had an enormous impact on the agriculture sector. The change brings us closer to the limits nature decrees on all we do, and while biological limits should be respected we cannot overlook the basics that hold the greatest opportunity to improve beef production.

Tom Field perhaps sums it up the best: “We have celebrated per-animal production as the Holy Grail of livestock production. It serves as the basis for our sustainability message, our pride in being productive and the pride we take in feeding people, but we need to idle for a second, apply our full senses to look, listen and smell, and then apply those observations to what we know as stockmen.” 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).

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 prime cuts

By Steve Kay

from Reputation Breeders

The COOL nightmare

C

ountry-of-origin labelling (COOL) has become the North American meat industry’s nightmare that refuses to end.

Just when the industry thinks resolution is in sight, hopes are dashed and the battle continues.

Opponents and supporters have been deeply divided ever since the idea of COOL emerged in the late 1990s. It’s remarkable that this hasn’t divided the U.S. industry more. The reason is that the vast majority of American livestock producers oppose mandatory COOL. Only a tiny minority support it and they are on the fringe of the industry in terms of influence. But the most bizarre aspect of the COOL battle is that the minority view has prevailed where it counts, in the corridors of Congress and in the law courts.

Remember how Canadian Ag Minister Gerry Ritz last November confidently predicted that Congress through the new U.S. Farm Bill would repeal COOL. I hate to say “I warned you so” but I wrote in this column in December that “it ain’t over till it’s over.” Now it seems the battle will drag into 2015.

Meat and livestock groups in the U.S. and Canada had spent months trying to persuade the Farm Bill authors and other legislators that the COOL rule needed to be amended or repealed to avoid retaliation from Canada and Mexico after they prevail at the World Trade Organization. But the authors crushed hopes that the bill would contain a COOL provision.

Opponents made a solid case. But COOL never became a top priority for the authors or other legislators. COOL got shoved down the list, as the authors struggled to reconcile the much larger issues of food stamp spending, dairy support policy, direct payments to farmers and others.

Neither though did the authors sufficiently understand that COOL is already causing considerable hardship both in Canada and the U.S., and probably in Mexico as well.

COOL and the shrinking U.S. cattle herd will claim another packing plant casualty on April 4 when National Beef Packing closes its Brawley, Calif., beef-processing plant. The plant has struggled with a declining supply of fed cattle and faces operating losses for the foreseeable future, says its majority owner. The declining cattle supply largely reflects the big reduction last year in imports of Mexican feeder cattle. The reduction was due to the impact of COOL and a recovery in pasture conditions in Mexico.

Cargill idled its Plainview, Texas, beef plant early last year, also because of shrinking cattle supplies in part due to COOL. It had a processing capacity of 4,650 head per day. The Brawley plant has a capacity of 2,000 head per day. That’s a big combined loss for the region and a big blow for cattle feeders in the Southwest.

The failure to put a COOL remedy in the Farm Bill means opponents must now wait for the WTO to determine whether the U.S. remains out of compliance with its WTO obligations. That’s assuming the groups fail in their ongoing legal efforts to get the COOL rule suspended. A WTO disputes panel met February 18 and 19 to hear continuing arguments from the U.S., Canada and Mexico. This process will continue the rest of the year, because one side or the other will appeal the panel’s final decision. Canada and Mexico are widely expected to prevail. The WTO will then allow them to apply $1.5 billion of retaliatory tariffs against a wide range of U.S. exports, including livestock and meat, to both countries. That might start in mid-2015. Then Congress will finally have to do what it should have done through the Farm Bill. c www.canadiancattlemen.ca

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 breeding

By Debbie Furber

Genomics hits the ground

T

he science of beef cattle genetics has sped up rapidly since the bovine genome was first mapped in 2009. Now it’s time to put that knowledge to work on farms and ranches with genomically enhanced expected progeny differences (EPDs). That was the main message presented to producers at a couple of recent gatherings in Regina and Edmonton.

Genomically enhanced EPDs look and read like traditional EPDs from your breed association but these ones are bulked up by massive amounts of genetic data.

Producers simply submit their pedigree and performance data as they normally do to their breed association. If the animal has been previously genotyped or is related to an animal that has been sequenced and is in the database the genetic and phenotypic information is merged to create an enhanced EPD. Genotyping is commonly known as DNA profiling because it looks at multiple traits. The results are expressed as molecular breeding values (MBV) for each trait.

The numbers alone don’t mean much unless they are ranked against MBVs of other animals in a reference population.

MBVs are predictions of an animal’s own genetic merit, which, on average, is about half the equation in its offspring. EPDs, on the other hand, incorporate data from an animal’s sire, dam and their relatives down the lineage with the animal’s own record to predict performance of its offspring.

“MBVs are not meant to replace EPDs, but will help make EPDs more predictable,” says Dr. Les Byers of Vegreville, Alta., manager of veterinary services, beef cattle and beef genomics for Zoetis (formerly Pfizer Animal Health). Zoetis markets a highdensity (50K) genomic panel for genotyping Angus cattle.

Byers says genotyping immediately increases the accuracy of an EPD. It’s the same as instantly adding the records from 15 to 30 offspring (depending on the trait) to the accuracy of a bull or heifer’s EPD before it even produces a calf. That’s more calves than a natural-service bull produces in a year or one cow produces in a lifetime, he adds.

“By not using genomics, we are making

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mistakes,” says Byers. In one trial, he says, specific criteria were identified for selecting yearling bulls and potential candidates were pulled from a group of candidate sires.

Based on their traditional EPDs, 95 bulls met the criteria and 368 didn’t. When the bulls were genotyped with a high-density panel to improve the accuracy of the EPDs only 62 of those 95 bulls met the criteria, and 44 of those that had been culled now passed the test. In total, they had 106 bulls from which to choose versus the initial 95 selected using traditional EPDs. In the same way, genotyping can be used to select superior replacement heifers and cull bottom-enders.

In the big picture, these genetically spiked EPDs will speed up genetic progress on farms and within the industry as a whole.

Byers says sales of their high-density Angus panel to seedstock producers are growing, and the price is coming down, but it is the demand from commercial bull buyers for this genetic information that will drive the spread of this technology.

Lower testing costs and the fact DNA can now easily be extracted from a few hair follicles and tissue punches are behind the increasing use of gene panels for parentage testing. Some breeds now require DNA to register an animal.

It is also being used in large commercial herds to identify sires in multi-sire breeding pastures or cleanup bulls after AI breeding. It this way it can help sort out the least prolific sires, identify heifer bulls, and find sires whose daughters deserve a place in the breeding herd.

Tests for the leptin gene and marbling are currently being used to manage groups of calves in feedlots.

Challenges

One very real challenge to adopting this technology is the fact that many producers don’t yet fully understand or use EPDs. “Some producers really dive into EPDs; some don’t even look at them because either they don’t care or find all of the numbers too overwhelming; and others trust that EPDs work and figure using them is a good way to select cattle that fit their goals,” says Tom Lynch-Staunton, director

“ By not using genomics we are making mistakes.”

Dr. Les Byers, Zoetis Vegreville, Alta.

of industry relations for Livestock Gentec at the University of Alberta.

As a result the goal for breed associations and anyone involved in extension today is to get people thinking about genomic improvement and how they can use a combination of genomics, performance records and visual appraisal to find the best animals for their operations, says Lynch-Staunton.

“The use of genomics won’t replace cattle shows. An animal could have a great genomic profile, but not be functional.

Genomics is a complimentary technology, not a competing technology.”

Another underlying fear is that genomics will eventually reduce diversity within the beef herd as it has done with dairy, pork and poultry.

Lynch-Staunton says beef cattle are different. Those other industries were quick to adopt genomics because of their uniContinued on page 35

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b r e e d i ng  produce r p ro f i l e

Putting genomics to work Genomics was the lead-off topic at the Saskatchewan Beef Industry Conference last month, where Darren Bevans, general manager of Deseret Ranches of Alberta, explained the goals of his company’s genomics program.

Deseret Ranches of Alberta is located south of Lethbridge and is part of a string of cow-calf and stocker operations affiliated with AgReserves Inc. Several years ago, the company purchased a 44,000-head feed yard in Kansas to capture full value from all the calves raised on their ranches which are located from Alberta and Montana all the way down to Texas and Florida. The Alberta ranch is the only one that doesn’t funnel calves into the feed yard solely because of mandatory country-of-origin labelling.

“The feed yard changed us fundamentally,” Bevans says.

“Previous to that each ranch ran its own breeding program and we were marketing to capture the most value at the ranch, which is very different from maximizing profitability over the production life of the animal. By capturing full value, we are now in a position to leverage significantly more investment up front in the genetics of the cattle.”

The ultimate goal of the genomics program as it comes together is to improve production efficiencies and garner premiums from the packer by providing large numbers of highquality Deseret name-brand calves every week.

Performance, quality and uniformity in the beef product were identified as priorities, but it was obvious they could never have the exact same breeding across all ranches because of the environmental differences with Bos indicus cattle dominating the large southern herds and Bos taurus cattle elsewhere. All of the commercial herds are now working toward a blend of Angus, South Devon and Simmental genetics, with some Brahman genetics added to the southern breeding programs to deal with the heat.

Five years ago, Bevans hoped genomics could be the magic bullet for cattle selection — where a hair sample would reveal an animal’s ability for many traits, however, this hasn’t come to fruition. “Each time we peel off one layer and think we are down to the meat, we find another layer of complexity underneath,” he says.

One major complication is that the genetic marker panels available today are breed specific and don’t apply to the company’s crossbred cattle. This caused them to rethink how the current technology could be applied.

A model similar to that used in the hog industry was put in place by centralizing the bulk of the genomic testing at the elite level, replicating the desired genetics at the multiplier level and leveraging that investment across the commercial operations through to the feed yard.

The elite herds undergo intensive selection with the use of 20K to 50K panels, primarily to determine actual genetic relationships of progeny to generations further back and siblings. This increases the accuracy of the expected progeny differences (EPDs) to better predict a calf’s future performance at a very young age.

“There are lots of traits we’d like to select for, but the reality is, the more we select for the less progress we can make in any one trait,” Bevans says. “The Deseret five that we actively select for

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Darren Bevans are average daily gain, net feed efficiency, marbling, tenderness and frame. There are others we look for and won’t accept anything below a certain cut-off level.”

The multiplier herds produce the bulls that go out to the ranches, which rely on natural breeding alone. At the multiplier level, the basic parentage test is used to identify the sire of every calf. Bevans says this tool alone has enabled the company to generate some fairly solid EPDs that provide much higher confidence in each bull’s future performance.

The ranches are the commercial level, where it’s all about cost of production, efficiency and spreading the progress made across the ranches to reap the investment in genetics in the elite and multiplier herds. The group performance of the calves is tracked from birth to slaughter and individual performance and carcass data are obtained on specific cattle.

Data management was another major challenge eventually addressed by contracting a service provider for technical expertise, data interpretation and to calculate EPDs on animals in the elite and multiplier herds.

“Data management has been big for us to bring all of the data down to something we can make decisions on rather than adding to the confusion,” Bevans says.

Having come this far, the company is hopeful that with time and more data collected it may be able to develop a low-cost, low-density marker panel specific to the animals in the Deseret herds to assist with genetic selection. There’s also potential to use genetic testing to identify genes for individual traits across breeds, such as the leptin test, tenderness (calpain/calpastatin genes), and, hopefully, fertility.

There’s no reason why any one person or company needs to own everything to make this model work. “Absolutely, an individual producer can conquer this,” Bevans says. “There is huge opportunity to form business arrangements with each other to get rid of positioning within segments and making investment and marketing decisions based on the profitability of one segment. Somehow, if it’s going to happen, we need to figure out how to work with each other and that’s the biggest opportunity I see in the beef industry today.”

www.canadiancattlemen.ca

breeding

Continued from page 32

form production systems whereas beef cattle are raised in all sorts of systems and environments.

Each breed has strengths in certain traits and time will tell what value the industry places on those strengths and what each breed has to offer. With genomics those strengths can be identified and preserved through selection to maintain diversity within breeds and purebred lines by mating unrelated animals.

As it stands, a bull is two years old before his first calf hits the ground; four before those calves are harvested; and maybe seven before his offspring add to the accuracy

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of his EPD. By then he could be long gone and there’s no getting back the exact same genetic makeup.

Three steps to getting started

Lynch-Staunton says the genomics of tomorrow will be even more exciting than what is available today. In the near future we could have genetic evaluations that screen for improved feed efficiency, immune response and carcass traits.

To those who want to catch hold of this future, his advice is to start slow. Don’t rush out and have a bunch of profiling done.

Instead he suggests three steps to maximize the value of DNA testing.

Start by getting all of your paper records into an electronic format. This electronic data can now be used by a breed association to generate traditional EPDs for your cows, or rank the cows and heifers. Breed associations, the University of Alberta, and private companies offer this service for commercial herds.

At that point you are ready to have your DNA test results merged with your EPDs to create genetically enhanced EPDs for your herd to select bulls, cows and replacement heifers that fit with your goals.

The easiest way to use this new technology is to buy bulls and replacement heifers with EPDs and preferably genetically enhanced EPDs for the traits that are important to you. c

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 researc h o n t h e r eco r d

By Reynold Bergen

Cold Enough for You?

T

his has been an extra cold and snowy winter.

According to Environment Canada, Red Deer, Alta. had over three times as much snow as normal in November and December alone. Canfax reports that low temperatures contributed to a 35 lb. drop in Western Canada’s January carcass weights compared to January 2013. If low temperatures can impact bedded feedlot cattle sheltered by a porosity fence and fed a high-energy finishing diet… how has it affected your cows?

Cold and wind: In 1970, the University of Alberta showed that cows could tolerate -26 C without increasing their heat production, provided they were in good condition, had a good hair coat, a good diet, and there was no wind (Can. J. Anim. Sci. 50:563). But wind changes the picture considerably. Cows need to produce 20 per cent more heat at -20 C with an eight m.p.h. wind than at -26 C with no wind, and nearly 30 per cent more heat at -20 C with a 12 m.p.h. wind.

Windbreaks and bedding: In 1959, Dr. Red Williams at the University of Saskatchewan reported that cattle raised behind a 20 per cent porosity fence were 18 per cent more efficient than unsheltered cattle, and feed costs were 25 per cent lower for cattle that were bedded in winter compared to those that weren’t bedded. In 1975 the University of Alberta’s Bruce Young reported that cows in good to fat body condition, fed generously, bedded and housed outside gained 42 pounds between early November and mid-January. Cows that were managed identically (but without bedding) lost close to 10 pounds (Can. J. Anim. Sci. 55:619).

Energy intake: Bob Hironaka and Hobart Peters of Agriculture Canada published a three-year study in 1969 (Can. J. Anim. Sci. 49:323). They compared cows fed 100 per cent of their recommended energy intake all winter long, cows fed 80 per cent of recommendations all winter, and cows fed 80 per cent for the first half of the winter then 100 per cent for the second half. In year one, temperatures averaged -4 C from November through April. At calving time, the 80/100 per cent cows weighed as much as the cows fed 100 per cent of recommended energy intake all winter. Both groups gained weight during pregnancy. The cows fed the 80 per cent diet all winter long did not gain weight during pregnancy. In year two, winter temperatures averaged -15 C. In that case, the 100 per cent cows and the 80/100 per cent cows maintained (but did not gain) weight over the winter. Cows fed 80 per cent all winter long lost weight. The third year was warmer (-7 C), but the coldest temperatures occurred in the last third of pregnancy. All groups lost weight during

36

C at t l e m e n · M a r c h 2 0 1 4

pregnancy, but cows fed the 80 per cent diet all winter lost the most.

There is no new news here. Cold cows need more energy. The colder they are, the more they need. When daytime highs drop below -20 C, Saskatchewan Agriculture recommends feeding one lb. of grain per head per day for each additional 5 C below -20 C. That’s one lb. at -25 C, two lbs. at -30 C, three lbs. at -30 C, and so on. If this energy doesn’t come from the diet, it will come from the cow’s energy stores.

This historic research was based on cattle wintered in pens. A lot of winter feeding has moved out of the corral.

Some producers deliver hay or silage to cattle in the field.

Other cattle graze bales, chaff piles, swaths or stockpiled forage. These systems have cost advantages compared to traditional pen feeding. If the extended feeding program is being managed properly and the cow’s dietary requirements are being met, all should be well. But the harder the cow has to work for her feed, and the more exposed she is to the environment, the more feed will go to maintaining her (or the sooner you will run out of feed).

In 2004, Duane McCartney and co-workers at Agriculture and Agri-Food Canada’s Lacombe research station (Can. J. Anim. Sci. 84:511) reported that mature cows grazing barley swaths consumed 18 to 21 per cent more feed energy than pen-fed cows given free-choice barley straw, plus barley silage fed every day or every other day.

Even though they ate more, the swath-fed cows gained less than a tenth of a pound per day, while the pen-fed cows gained nearly a pound.

Winter is not over yet. Check the body condition score of your heifers, mature and old cows. Cows with a BCS of two out of five will need more or better nutrition to get them into optimal BCS (2.5 to 3.0) by calving time.

A feed test, a nutritionist, and some of last fall’s grain are a good start. Meeting the cow herd’s nutritional requirements can be expensive, but failing to do so can have costly impacts on reproductive performance.

Visit www.beefresearch.ca for more information about Beef Cattle Research Council activities funded through the National Checkoff.

The Beef Research Cluster is funded by the Canadian Cattlemen’s Association and Agriculture and Agri-Food Canada 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 Reynold Bergen is the science director of the Beef Cattle Research Council.

www.canadiancattlemen.ca

 manage m e n t

By Dawn Hillrud

Sharpen your Human resource skills Part 1, Create a plan

H

uman resources management is imperative to a successful cattle operation. You manage crops, livestock, machinery, money and land, but you also manage people. You’re a human resource (HR) manager, whether you like it or not.

And as an HR manager, you have to ask yourself, are you managing this resource by default or design? Here are some questions to help you decide: What needs to be done? Do you assign and sort tasks on the fly? A job’s design impacts your employees, and influences their success and thus their value to the operation. What if you need someone to operate large machinery, check feedlot pens, and deal with calving while you are away? Is that a full-time job, or one full-time job plus a part-time job? Will one employee who is good at operating large machinery stick around if they have to check pens or work at night during calving? Are those mix of skills even available in your area? These are all things you need to consider when planning your hires.

What does success look like? This question is seldom asked, but it might just be the most critical one to your success as an HR manager. Knowing what makes the job successful will allow you to hire the right person, provide clear expectations to them, and assist in sound performance management practices. Knowing what success looks like provides clarity for both the manager and the employee.

When do you need these people? The job itself will often answer this question.

Are they needed for calving, or the fall run?

That’s step one. Deciding when to start looking for candidates is not so easy, since it involves your own recruitment and selection strategy and current labour market conditions. For example, it might be wise to start early to look for students to fill seasonal jobs, particularly when the labour market is tight. Your own time is another factor. When do you have time to conduct a search? Remember, as the farm manager, one of your assigned HR tasks is to make sure you have the time to do it right.

What are the external conditions? Planning does not happen in a bubble. You have

38

C at t l e m e n · M a r c h 2 0 1 4

“ As the HR manager you have to ask yourself, are you managing this resource by default or by design?”

Dawn Hillrud Knibbs/associates HR consulting

to consider the local economy. Over the last few years there have been a number of dramatic changes in the labour market. In 2008, unemployment rates were very low across Canada and it was difficult to find workers. In 2010, the unemployment rate increased by two per cent in some areas, which made a difference in the number of people available for hire in those places.

Right now, labour markets in Alberta and Saskatchewan are extremely tight, so you might not be able to simply post an ad to receive quality applicants.

Compensation

Compensation is the next major question to be answered in creating your HR plan.

What is a fair wage? That’s the BIG question. However, wages are only one part of

the employee’s reward package. Rewards, which include wages and benefits, influence employees and should be developed based on what motivates them. Organizations that have low turnover and contented employees usually have a well-thought-out reward package.

On a lazy Sunday afternoon, you can research the many motivational theories — Maslow, McClelland, Hertzberg, and Expectancy Theory, just to name a few. As interesting as these theories are, the key question to ask is what do you believe motivates people: money, a job well done, recognition, benefits, or something else? Your beliefs will impact the rewards you offer employees.

Employee rewards may include tickets to a coveted game, fuel for their truck, a day off during calving or the fall run, or simply letting them operate the silage chopper instead of the truck. You reward employees with more than money. Being creative with rewards can build loyalty and motivation, and reduce costs. Sometimes a reward that is earned is cheaper and more valued than a wage increase.

When considering what benefits to offer, think about what your employees value and what works operationally as well as the cost. For example, employees generally value training (especially generation Ys), and training generally benefits both you and the employee. So it has value.

However, this benefit can create operational issues if it requires time off at a busy time of the year or if it is difficult to find replacement workers to keep the operation running.

You need to work out the cost/benefit ratio to decide if training will pay. Is it a cost, or an investment for you? Employees with specific training related to the operation can be more productive and thus more valuable on any farm, ranch or feedlot.

In setting wages just remember everyone knows someone who earns more doing the same job. People don’t talk about those who get paid less. So wages are a prominent part of your reward package and it pays to know where your wage structure fits in the market. For that you can often turn to your provincial Ministry of Labour. B.C. 2009 wage data are posted at www.bcstats.gov.bc.ca/data/lss/labour/wage/;

www.canadiancattlemen.ca

MANAGEMENT

Alberta’s is at — alis.alberta.ca/wageinfo/Content/RequestAction.asp?format=html&aspA ction=GetWageHomePage&Page=Home; a federal government salary calculator that can be sorted by region is posted at www.canadavisa.com/canada-salary-wizard.html. Wage data can also be sourced through private companies, some provide it for free, some charge a fee. It’s best to collect data from a few sources to improve the accuracy. Finally, take the time to check your local market by asking other farms, ranches or feedlot operations what they pay.

Large farms, ranches and feedlots with a number of employees need to consider internal fairness when setting wages. Is the pay equitable based on the skills required and the tasks involved? Is everyone expected to do multiple jobs like pen checking and processing or are these specialized skills? Are they paid the same, should they be? Is the spread between the pen checkers and the manager’s job appropriate? Do people perceive the internal wages as fair in relation to each other? These are some of the questions you need to address when setting a wage rate.

In addition to wages, you can offer bonuses

------

and other types of profit-sharing plans. The upside of this payment is it links rewards to profit and outcomes. When the operation does well, you have the capacity to share the wealth. When there is no additional wealth to share, the base rate does not change, so you’re not committed to the higher wage. If you’re considering some type of profit sharing or bonus, consider it carefully.

You want your wages to be fair. Think first of motivation; then think of total rewards. A well-thought-out package will motivate your employees and create greater satisfaction.

This is the first in a series of three articles on human resource management on cattle operations. c Dawn Hillrud is a partner in Knibbs/associates Sourcing People and an associate of Knibbs/ associates HR Consulting that provide HR and employee recruitment services to agricultural organizations. Co-author Leah Knibbs is the owner of Knibbs/associates HR Consulting and a partner in Knibbs/associates Sourcing People. For more information contact Dawn at dawn@sourcingpeople.ca or 306-442-7460.

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C AT T L E M E N · M A R C H 2 0 1 4

39

 Holistic R a nc hi ng

By Don Campbell

Benefiting from Good Times

C

attle prices have trended higher since the start of the year. This is most welcome news. But the strong market raises an interesting question. How do you plan to spend the extra money?

The traditional response to higher prices has been to let our cost of production rise. If we are not careful we can raise our cost of production so that there is no more profit at the higher price than there was at the lower price. Everyone in the cow business has learned some cost-cutting measures in the last 10 years. By and large these things have worked. Don’t abandon them because prices are higher.

Let me suggest some ways we might take our profit and invest it wisely to build a more profitable and sustainable business.

My first suggestion is don’t spend the money before you have it. It is easy to anticipate a high price down the road and begin to spend the money before we even have it.

My second suggestion is to invest in your people. This will be the most valuable investment you ever make. The strength, knowledge and skill of your people will determine how successful your future will be. What this investment might look like will be as varied as the people reading this article. It might include things like marriage enrichment, improved communication skills, writing a will, developing a plan for intergenerational transfer, education about grazing or financial management, low-stress livestock handling, mechanics, welding, marketing etc. etc. the list can go on and on.

My third suggestion is to invest in improving your land. Here I am implying working with nature to strengthen the ecosystem building blocks (energy flow, water cycle, mineral cycle and succession). The end result will be more production off a set land base. Investing in your land by improving your management pays huge dividends. Let me share some numbers to demonstrate this concept.

Let’s start with a gross profit for a cow-calf operation. The definition for gross profit is income per cow minus the variable expenses.

A variable expense is one that increases as cow numbers increase.

Overhead expenses are not considered at this time. Overhead expenses are not related to the number of cows and will be a constant amount regardless of cow numbers.

Income: To keep this simple I will use a 500-lb. weaning weight and a price of $2 per pound. I suggest that you don’t get hung up on my numbers. Use your numbers and this process to arrive at your own answer.

Variable Expense: Once again use your numbers to arrive at your answer.

Gross Profit: income $900 minus variable costs $468 = $432.

We now have a base to work from. Each cow in our herd will generate a gross profit of $432. We will start with 200 cows. Our overheads per cow are $300 (this is an arbitrary number, use your own numbers). Doing the math ($432- $300 = $132) we find that each cow produces a profit of $132. We have 200 cows so our profit is $132 x 200 =$26,400. Now let’s see what happens when we improve our land so we can increase our carrying capacity.

As we increase carrying capacity our overheads remain constant at $60,000 but the overhead per cow declines. This results in more profit per cow. Increasing carrying capacity by 25 per cent increases

40

C at t l e m e n · M a r c h 2 0 1 4

Income: Weaning Wt. 500 lbs.

Price

$ / Head

Wean %

$/Cow

$2

$1,000

90%

$900

Variable Expense: Winter Feed

$270

1,500-lb. cow x 3% BW =45 lbs./day x 200 days x $.03

Depreciation

$52

$1,400 bred heifer minus cull cow 1,500 X $.70 = $1,050 $1,400 - $1,050 = $350 x 15% (cull rate) = $52

Breeding

$38

$3,500 bull minus salvage 1,800# x $.70 = $1,260 = $2,240 plus winter feed for 3 yrs. ($2 / day x 200 days) = $1,200 cost of bull plus feed $2,240 + $1,200 = $3,440 / 90 Hd. = $38

Salt / Min.

$28

Death

$28

Marketing

$30

Vet

$30

Total

2% x $,1400 = $28

$468

Gross profit: # of Cows

200

250

300

350

400

Income / Cow

$900

$900

$900

$900

$900

Variable Exp.

$468

$468

$468

$468

$468 $432

Gross Profit

$432

$432

$432

$432

Overheads

$300

$240

$200

$170

$150

Profit / Cow

$132

$192

$232

$262

$282

$26,400

$48,000

$69,600

$91,700

$112,800

Profit / Ranch

profit per cow by $60. This is an increase of 45 per cent ($60 / $132).

The profit for the ranch increases even more dramatically. This is a result of having more profit per cow plus more cows. The end result of increasing carrying capacity by 25 per cent is an increase in profit of $21,600. This is an increase of 82 per cent ($21,600 / $26,400).

Improving your land has more potential for profit than anything else you can do. It is obvious that the above example will change as gross profit and overheads change. The point is that the trend of a large increase in profit won’t change. Improved land will mean more profit now and far into the future. Two challenging questions arise from this line of thinking.

One, is there any other management change you can make that has the potential for this amount of increased profit?

Two, will you consider investing in land improvement as we enjoy better times?

Managed properly cattle are a powerful tool to improve our land.

Improving the land will result in more profit in the short term and sustainability in the long term.

Happy trails. c Don Campbell ranches with his family at Meadow Lake, Sask., and teaches Holistic Management courses. He can be reached at 306-236-6088 or doncampbell@sasktel.net.

www.canadiancattlemen.ca

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REMEMBER THE DATE-APRIL 2, 2014 SELLING 205 BULLS - 130 HEIFERS

 straigh t f ro m t h e h i p

By Brenda Schoepp

Uprooting an Economic Dependency

T

he introduction of the U.S. Farm Bill has offered little change for most farmers with the exception of dairy. Cool will not change and that leaves Canada with a few options — many of which will be discussed in this magazine. American farm insurance will be enhanced with US$10 billion going toward covering insurance deductibles.

Although the amount for food stamps has been reduced slightly over the next decade, the majority of the Farm Bill — 79.1 per cent or US$756 billion — will be allocated toward food stamps. Today, 46.5 million persons in the United States live below the poverty threshold of $23,050.

This paints a picture of economic dependency within our major trading partner. Welfare, charity and aid have been proven to perpetuate dependencies. Food stamps may keep the nation fed but never motivated and current-day U.S. is hardly the model of economic efficiency.

Looking at the whole picture, I must question whether beef cattle don’t fall into the category of economic trade dependency with the United States. Canadians continue to insist on monotrade when it comes to commodities rather than view opportunity from a global platform. We have a trade deficit in processed food, specifically meats, and yet continue to hope to sell a live product to a country that picks up the benefit of the value add. The globe keeps spinning while our liners are faced due south.

In 2012, U.S. exports of agricultural products to Canada totalled US$20.6 billion. Canada is the second-largest U.S. export market in agriculture. Items destined for Canada by leading categories were fresh fruit ($1.8 billion), snack foods ($1.7 billion), red meats, fresh/chilled/ frozen ($1.6 billion), fresh vegetables ($1.6 billion) and processed fruit and vegetables ($1.3 billion).

Products that moved from Canada into the U.S. were similar in trade value but differed by category. Agricultural products from Canada to the U.S. totalled $20.2 billion in 2012. Leading categories: snack foods (including chocolate), ($3.1 billion), other vegetable oils ($2.0 billion), red meats, fresh/chilled/frozen ($1.7 billion), live animals ($1.5 billion), and processed fruit and vegetables ($1.3 billion). The live beef cattle industry in Canada is nearly equally dependent on live trade as it is on red meat trade. When you look at it from the perspective of a trade profile, it is the only main trade category without a value-added component.

The total of all exports from Canada to the U.S. is US$324.2 billion. Between agriculture, mining, fuels and manufacturing, Canada contributes 2.47 per cent of the total world exports. And although both the U.S. and Canada have a sticky dependency on each other, it is not until the Americans ignite true economic growth that we will ever see a Farm Bill that is about — farming.

Canada has one of the highest ratios of income equality in the world while the U.S. and Mexico are near the

42

C at t l e m e n · M a r c h 2 0 1 4

lowest. Our stable economy allows us to be leaders in trade and value-added marketing, allowing for an eventual trade surplus, even in red meats. And while our poverty rates continue to decline, we are for some obscure reason putting our eggs in the basket of a country whose poverty rates continue to increase.

We now know that aid does not help countries or the folks in it. Africa for example, is much poorer than it was 40 years ago. By nation though, where there has been economic reform and growth, the level of baseline poverty has dropped (in this example the base line is US$1.25 day). It may surprise you to know that in the United States, those food stamps and other subsidies are allocated to individuals who live on $2 per day or less if not for the intervention of government programs. At the beginning of 2011, 1.48 million U.S. households were surviving on $2 a day or less and those households cared for 2.8 million children equating to 20 per cent of all American households with children living in extreme poverty, according to a Harvard University report. It paints a grim future for robust trade of high-quality items such as Canadian beef.

In the cattle industry we have also seen consolidation of poverty which was borne by the cow-calf operator in 2003 because of our economic dependency on live trade. The opportunity to stretch trade and to work with other countries presented itself but truthfully Canada defaulted back to live trade with the U.S. Minister Ritz has stepped to the plate and started engaging countries in beef trade. Today, our feeding industry really feels the need for live trade to reign in the basis. Let us step back and look at it from a food-processing perspective and the potential for a created or eliminated basis.

Today, we have the opportunity to uproot the beef trade though the CETA and other proposed agreements.

It would mean a focus on product differentiation to the buyer’s specifications and open the door once again to value-added product. The dollar is working in our favour from the perspective of a global trading platform. This may be the only way to keep our calves competitive at home while allowing for the feeding industry to prosper by value adding to grain and the packing industry to prosper by value adding to cattle. Canada need not have an economic dependency on live cattle. Climb down from viewing that southbound liner and spin the globe, opening up a world of possibility. c Brenda Schoepp is a Nuffield Scholar who travels extensively exploring agriculture and meeting the people, who feed, clothe and educate our world. A motivating speaker and mentor she works with young entrepreneurs across Canada and is the founder of Women in Search of Excellence. She can be contacted through her website www.brendaschoepp.com.

All rights reserved. Brenda Schoepp 2014

www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

on-farm biosecurity: keep it practical A veteran vet’s advice for cow-calf producers

I

t’s not hard for on-farm biosecurity to get complicated. But when you’ve been around the industry like Dr. Tom Pittman of the University of Calgary, you get a clear idea of what works.

Having complicated biosecurity protocols without practising basics just does not make sense, he says. The target should be to be practical, not onerous. The goal in most cases isn’t sterilizing, just gross decontamination.

From his years as a vet, educator and industry adviser he offers these tips to do that.

Have a boot-cleaning kit. Footbaths have their place but for most cow-calf operations they aren’t practical in freezing temperatures or muddy conditions.

And dipping boots in them doesn’t allow enough contact time to penetrate mess.

The most important thing is removing mud and manure from boots. A high-pressure washer works, but just as effective is a good brush, scraper and pail of hot, soapy water. Once cleaned, use a spray bottle to thoroughly apply a solution of household bleach as a last step.

Simplify disinfectant use. There are many good disinfectants but the best option is one that is readily available and will be used. “The more expensive the product, the more the tendency to skimp.

Everyone has household bleach and will not be afraid to use it.”

Guest clothes make sense. Have extra boots and coveralls for visitors. No need to manage footbaths and wash-up protocols or tell people they need to clean up.

For footwear that has been on other premises, scrub first, then apply a solution of bleach.

Wash your hands. “We don’t wash hands enough. If you don’t like disposable gloves, use alcohol-based hand cleaners.”

Have dedicated equipment. There are two biosecurity goals in calving season.

Don’t introduce anything. “Avoid buying little calves from the auction and know where your colostrum is coming from.”

And manage what’s on your farm. “For example, mark and keep colostrum feeder bags separate for healthy and sick calves.

Saliva and milk fats are sticky. Clean bags with hot, soapy water, rinse and disinfect with bleach solution. Then hang to dry.”

Healthy animals first in farm chores.

Treating healthy animals first, then sick maximizes the time between when you are last in contact with sick animals.

Clean ear tag equipment. Even small

amounts of blood on tagging and tattooing equipment can transfer disease such as bovine leucosis.

Fresh needles make sense. Use detectable needles and try to use a fresh one for every animal. Good needles cost only a few cents compared to the cost of the product.

Manage bull entry. Best advice is to buy bulls with known health records and keep them separate from other bulls for a period of quarantine time.

Protect the beef showcase

“Every visitor to a farm or ranch is a chance to showcase Canada’s beef industry,” says Pittman. “The best biosecurity options allow producers to manage effectively without scaring people off.”

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REV-XS Canadian Cattlemen QSHere.indd 1

13-07-24 14:49

 CCA repo rts

By Martin Unrau

finishing up

T

here is certainly a lot to reflect upon in this, my final column as the president of the Canadian Cattlemen’s Association (CCA). The past few years have been filled with many successes, including landmark achievements in market access and trade. In the last two years in particular, as CCA president, I have been busier than I ever anticipated I would be going into this job, but the hard work has been incredibly rewarding.

When I began my term I had my sights set on resolving four long-standing issues. I wanted a Canada-EU trade deal, Japan to move to accept under-30-month beef, cattle price and basis insurance expanded to a national program, and to successfully resolve U.S. mandatory country-oforigin labelling (COOL). The CCA achieved three of these goals in that time and we’re still working on the fourth.

COOL is the most difficult file to negotiate and is even more politicized now, but the CCA is right to continue its efforts to resolve COOL and its discriminatory effects.

Since November, the revised rule has more than doubled COOL’s negative impact to over $100 per head. Canadian producers continue to receive less money for their animals than their U.S. counterparts and the financial damage COOL causes to the processing industry and jobs has resulted in plant closures and layoffs.

The CCA of course has achieved many more successes in this time. The Code of Practice for the Care and Handling of Beef Cattle was released. Code guidelines are requirements and recommended practices that balance practicality, public concern and science. Producers can defer to the code knowing the contents are based on the latest knowledge and science. The development of BIXS 2 got underway and the system continues to improve as it evolves.

The CCA has also made great progress in addressing emerging issues like sustainability. The Canadian Cattlemen’s Foundation and the Canadian Roundtable for Sustainable Beef were launched and continue to progress. The CCA is involved in the effort to define sustainability along with industry stakeholders to ensure that producers are represented and that the good practices they already use are part of the equation, and that the definition is practical and makes sense.

The CCA was approved for AgriMarketing funding under Growing Forward 2 of $717,500 to add modules for biosecurity, animal care, and environmental stewardship to the Verified Beef Production program.

We also welcomed the $14 million in funding for the Beef Cattle Industry Science Cluster under Growing Forward 2. Combined with industry contributions, the cluster will invest a total of $20 million to support strategic research.

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C at t l e m e n · M a r c h 2 0 1 4

The CCA is involved in the development of a five-year strategic plan for industry and has co-ordinated issues management among stakeholders as we work towards a plan that will ensure the industry is well prepared to respond appropriately when such situations arise.

By any definition, the CCA’s track record is remarkable and reflects the high level of work the organization does. I attribute the successes of the past few years to the work of an extremely capable staff whose dedication, experience and professionalism represent producers so well. The relationships with governments, value chain partners and stakeholders is what continues to make the inroads that result in the high-level achievements that enable long-term industry competitiveness that benefits producers.

The agreement in principle for a Canada-EU Comprehensive Economic and Trade Agreement (CETA) is a good example. Once finalized, CETA will provide Canada’s producers with another market to pursue and helps to increase the value of every animal produced in Canada.

The removal of long-standing barriers in the CETA deal will enable producers to benefit from new duty-free access for Canadian beef valued at nearly $600 million.

There is renewed optimism around achieving a Canada-Korea Free Trade Agreement (FTA). Korea has an FTA with the U.S., the EU and Australia. The CCA continues to urge the Government of Canada to quickly conclude an FTA with Korea so that Canadian beef can continue to compete in that market.

CCA attended the TPP trade ministers’ meeting in Singapore in early December. A final TPP agreement was not reached at that time and much work remains on negotiating the market access commitments. The CCA, as part of the Five Nation’s Beef Alliance (FNBA), established a set of core principles for the TPP and emphasizes that tariffs on all products should be fully eliminated without recourse to quotas or other safeguards and emphasizes the importance of addressing non-tariff barriers. The CCA was present for the next meeting, in February 2014, also in Singapore.

Japan remains a subject of interest in terms of the TPP negotiations. The CCA also strongly encourages a JapanCanada Economic Partnership Agreement to provide full tariff-free access for Canadian beef.

The timeline to conclude many of these outstanding files is uncertain at this time. This includes Canada’s COOL challenge at the WTO and the outcome of the coalition lawsuit in the U.S. While many of these issues might not be resolved in the few weeks that remain of my term, I am confident they will be resolved and to the benefit of our cattle producers and industry. c

Martin Unrau is president of the Canadian Cattlemen’s Association

www.canadiancattlemen.ca

 THE IN DUST RY

NewsRoundup Associations

Larson wants a stronger voice for SCA

Paula Larson, the new chair of the Saskatchewan Cattlemen’s Association (SCA), hopes the association will gain a stronger voice within the industry during her term in office.

“The SCA is still a young organization and I would like to see it become stronger with harmonious representation to speak on behalf of the province’s cattle producers,” says Larson. The SCA was officially established as a development commission in February 2009.

Her focus addresses several core strategies laid out in the SCA’s strategic plan adopted last year. In addition to improving board unity, it calls for better communications with producers, and implementing a beef industry public relations plan.

In response SCA’s communications committee formulated an overall plan and attended several major industry and consumer trade shows last year with the assistance of their new project manager Patty Englund. They also organized a tour of print, television and radio journalists to a cow-calf operation, a feedlot and a beef research facility, and set up meetings with reporters from the Saskatoon and Regina dailies to establish SCA as a reliable source of information on the beef industry.

Research remains a high priority for the SCA, says Larson, pointing to the organization’s backing of the Saskatchewan Forage Network and the University of Saskatchewan’s new beef cattle research and teaching unit. The SCA committed checkoff funds of $200,000 per year for five years in support of the U of S beef unit.

The first instalment was paid in 2013. Another $43,000 per year for three years has been earmarked for forage research projects recommended by the forage network.

At the January meeting SCA members carried a resolution backing an industry strategic plan being led by the Canadian Cattlemen’s Association and Canada Beef.

The motion was prompted by concerns that a competing straw man strategic plan put forward in December could end up competing for checkoff dollars with the SCA-backed plan.

Discussion on a resolution to work with the provincial government to establish a www.canadiancattlemen.ca

producer patron’s assurance fund dominated discussion during the resolution part of the meeting. It narrowly carried with the added provision that it be voluntary.

Following up on a resolution from the 2013 annual general meeting, the SCA has had a working committee exploring the concept of a producer assurance fund along the line of what’s available in Alberta and Ontario. The program’s intent would be to protect sellers from non-payment by dealers licensed in Saskatchewan, including auction market and packing plants. It is felt the current bond system doesn’t adequately protect sellers.

Sellers would pay a levy at the time of sale and be eligible to apply to the fund to recover 80 per cent of the value of the sale price upon non-payment by a dealer. The suggested initial levy is 25 cents a head,

which could be reduced once the fund has accumulated a reserve. The levy would be non-refundable, but the program would likely include an opt-out clause.

The concern regarding a voluntary program is that it could take a long time to build the fund to an effective level.

Some members expressed reservations about implementing something that’s not clear in terms of the conditions surrounding payouts from the fund, such as terms of extending credit and time of possession, in light of the various ways cattle are sold today. It was noted that big numbers with big money attached are common today, unlike days gone by when a sizable lot was 50 head.

Other suggestions revolved around looking at alternative ways to protect sellers such Continued on page 46

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News Roundup Continued from page 45

as a review of bonding procedures, verifying dealers’ ability to pay, requiring dealers to have a line of credit with the government, tightening up the existing regulatory process and making an effort to hold those who default accountable so they can’t be back in business within a short time.

The working committee will take these suggestions into consideration in deciding how to proceed with this initiative.

Members readily carried a resolution calling on SCA to establish a liaison between law enforcement and Livestock Services of Saskatchewan Corp., the new non-profit organization recently formalized to take over administration of brand inspection services from the provincial government.

The SCA annual report and resolutions will be posted on the website at www.saskbeef.com.

Associations

Manitoba approves checkoff increase

Manitoba Beef Producers (MBP) wrapped up a productive year at its February annual general meeting setting the stage for the association’s 36th year of operation.

In the past year the MBP, working with governments and other industry groups, saw renewed support for the verified beef production program, the start of a co-ordinated approach to tuberculosis surveillance, the introduction of a much-improved forage insurance program and the province’s entry into the new western livestock price insurance program.

The meeting started with a strong show of support for the association’s work when members voted to raise the provincial checkoff by a dollar to $3 per head. The increase will take effect at the start of the new fiscal year July 1.

Treasurer Theresa Zuk said checkoff revenue declined 11 per cent from the five-year average in 2012-13. The drop was six per cent more than the previous year. Without the increase, MBP would have been facing another 15 to 20 per cent decrease in rev-

enue in 2014 based on projections of a continued decline in provincial herd size.

Despite cost-cutting measures of the past three years that included slashing $85,000 from total expenses last year, the association ended the year with a deficit of $4,718, compared to a small surplus the year before.

Resolutions to make the provincial levy or part of it non-refundable were soundly defeated.

On a positive note, checkoff refunds declined by about two per cent to 15 per cent of the total collected as the association took the initiative to meet with producers who requested refunds to solicit their support.

MBP president Heinz Reimer says one immediate concern for the association as the summer grazing season draws nearer, is to obtain support from the provincial government for the revamped community pasture program. MBP was instrumental in bringing together representatives from the former federal pasture program to get involved in the formation of the Association of Manitoba Community Pastures to help oversee the management of these pastures.

It’s been well organized, says Reimer, but everything remains in limbo until the prov-

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

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N EWS ROUNDUP

ince makes a definite commitment to provide the interim funding to get it off the ground.

Members carried a resolution to lobby for the removal of the school tax rebate cap on community pasture land on the basis that the new program continues to provide ecological services.

Unanimous approval to push for a full accounting and audit of all activities of the Manitoba Cattle Enhancement Council (MCEC) from its inception to the end of the MCEC checkoff on September 1, 2013, makes this a priority issue as well. MBP lobbied for an end to the $2-per-head MCEC checkoff that was to go toward establishing a federally inspected packing plant at Winnipeg. Producers paid into the fund for eight years.

Members also want MBP to continue lobbying for informed access to Crown leases. Producers who operate on Crown land have long been concerned about the safety of people who enter a lease where cattle are grazing. The other concern arises when people neglect to close the gates when they enter the lease. Now that producers are taking steps to implement biosecurity measures to reduce the spread of animal diseases and noxious weeds on these pastures, producers believe they should be notified before someone enters the lease and that they be allowed to refuse permission if the risks are high.

Issues related to compensation for the 2011 Lake Manitoba flood remain top of mind and producers showed unanimous support to lobby the provincial government to meet its commitments to compensate producers for ongoing losses beyond 2011 and take measures to ensure levels on Lake Manitoba and the Shoal Lakes remain below damaging levels.

Continued on page 48

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28th AnnuAl Edition

News Roundup Continued from page 47

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Producers also support lobbying the province and Manitoba Hydro to improve emergency services in rural areas. Reliable power is important for personal safety and the care of livestock.

Looking ahead, Reimer hopes to see an MBP communications plan in place that will incorporate the use of social media. “We need to educate consumers that we are doing a great job of what we do and that raising cattle is good for the ecosystem,” he says. “As individual producers, we go about doing our work every day and don’t think to stop and tell our stories.”

The MBP annual report is available online at www.mbbeef.ca.

insurance

Western price insurance, at last

Manitoba producers had to wait a few weeks to join the party but after a couple of provincial byelections were decided provincial Agriculture Minister Ron Kostyshyn signed Manitoba into the new Western Livestock Price Insurance Program (WLPIP).

At press time western producers outside of Alberta were waiting for the details to be announced so they can start figuring out if they should sign up for the four-year pilot program that insures against unexpected price declines.

The program is fully funded by producer premiums with the federal and provincial governments covering administrative and delivery costs for the pilot program. The federal government provides deficit financing.

This is the long-awaited regional expansion of the Alberta program that has been covering various classes of cattle and hog production since 2009. The details of the regional plan are not expected to vary much from Alberta’s scheme. As such producers would buy insurance on an insured price they select from available policy options and coverage levels. Participation in the program will be voluntary.

Alberta’s Agriculture Financial Services Corp. (AFSC) which runs the CPIP program in Alberta will be the central administrative body for the regional program. Cattle producers will be able to opt to insure their calves, feeders or fed cattle under one of three separate programs, or to select only basis protection for fed cattle. A settlement index will be created to represent western regional markets for feeders and calves.

health

More money for BSE testing

Federal Budget 2014 contained a number of commitments for the beef cattle industry, including a proposed $205.5 million over five years to continue routine bovine spongiform Encephalopathy (BSE) programming.

The Canadian Cattlemen’s Association said the funding is needed to reach negligible risk status as early as next year and to maintain effective surveillance and prevention measures.

Surveillance is required for Canada to demonstrate that its control measures are effective and working toward eradication of the disease.

www.canadiancattlemen.ca

N EWS ROUNDUP

Canada is obliged to test 30,000 samples per year while classified as a controlled risk country. According to the Canadian Food Inspection Agency, falling short of this target could have an impact on Canada’s ability to apply for negligible risk status by next year, and receive that status in 2016, the first year of eligibility.

While the number of samples was down significantly in 2011 and 2012, specifically in Alberta and Saskatchewan, the trend was reversed in 2013.

In the first five months of 2013, Saskatchewan and Alberta reported a year-to-year increase in surveillance samples.

A total of 31,021 BSE samples were tested in 2013. Fortunately all of them were negative. This turnaround in the number of samples being submitted has partly been attributed to enhanced communications through the industry promoting the importance of continued BSE surveillance while Canada is a controlled risk country.

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trade

COOL back to WTO

The Canadian contingent in Geneva for the February 19 WTO panel hearing on the U.S.’s so-called fix to its country-of-origin labelling (COOL) law was pretty happy with the way Canada’s position was presented.

Canadian Cattlemen Association president Martin Unrau says U.S. officials conceded that the amended COOL measure has not eliminated the detrimental impact on Canadian and Mexican

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“The blatant protectionism of the U.S. position was clear throughout the hearings,” said Jean Guy Vincent, chairman of the Canadian Pork Council. “It was very satisfying to hear the chairman of the panel tell the U.S. lawyers that big countries and small countries in the WTO have the same obligations. It is taking much longer than we believe it should but we are confident that we will prevail,” he said.

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dential report to governments in June and then to the public probably a month later.

Of course, that decision is likely to be followed by an appeal.

If this process continued fully to its conclusion, Canada could be authorized to impose retaliatory tariffs on U.S. exports sometime in the first half of 2015.

The CCA says the amended COOL regulation is now costing Canadian producers over $100 per head. c

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 NEWS AB OUT YOU

By Deb Wilson

PurelyPurebred

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

n The Canadian Welsh Black Cattle Society held its annual meeting in Olds, Alta. on February 10, 2014. One of the items on the agenda was the technical problems they have been having with their website.

It is now back up and working, but they are continuing to make changes. You can check it out at www.canadianwelshblackcattle.com. The 2014 board of directors are: president: Randy Scott, Hanna, Alta.; vicepresident: Jim Blanke, Pilot Butte, Sask.; secretary/treasurer: Arlin Strohschein, Trochu, Alta. and directors John Buba, Spruce Grove, Alta.; Peter Froland, Hughenden, Alta.; Randy Kaiser, Caroline, Alta. and Tyson Mitchell, Kitscoty, Alta.

n Here is an oldie pic you might enjoy. Recognize any faces?? n Michael Latimer, executive director of Canadian Beef Breeds Council (CBBC), attended the National Cattlemen’s Beef Association (NCBA) Conference in Nashville last month along with CBBC past president Byron Templeton, and several other Canadian beef industry representatives, including myself. Some 8,000 people registered for the four-day event, and it was great to see so many Canadians in attendance. The primary discussion point at formal and informal meetings was the passing of the U.S. Farm Bill. The NCBA opposed the Farm Bill because it did not put an end to the mCOOL legislation, even

though it contained several positive pieces of legislation for cattlemen such as a disaster assistance plan. If you have never been to one of these conferences, I would encourage you to attend. It is a blend of meetings, networking, trade show, entertainment and keynote speakers. n Templeton and Latimer also attended a roundtable at the National Western Stock Show, in Denver, with members of the Colorado cattle industry to discuss the implications of border restrictions and particularly mCOOL on the economies of Canada and Colorado.

n Congratulations to Don and Mindy Good, of Acadia Ranching who celebrated their 40th wedding anniversary on February 16. Don and Mindy are longtime Charolais breeders, and Mindy also has her own Angus herd, which she took over from their son Ashley, after he passed away several years ago. n On January 16 STARS Air Ambulance received a generous donation from three cooperating organizations: Canadian Western Agribition, the Canadian Bison Association and Bouchard Livestock. Extensive fundraising activity held at the 2013 CWA generated $30,125 for STARS. n Canadian Western Agribition also donated $1,733 to Ronald McDonald House of Saskatchewan. Funds were raised

6’ 6” high - 113 1/2” wide - 37’ long 4,600 lbs

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52

C at t l e m e n · M a r c h 2 0 1 4

Classic Portable Handling System designed for safety 3 year structural warranty

www.canadiancattlemen.ca

PURELY PUREBRED

through a Chuck for Charity contest as part of Agribition’s annual five-day rodeo.

Rodeo fans purchased toy footballs with a chance to win prizes. n Bridget Wilson is the 2014 recipient of the 4-H Canada AgriVenture Global Scholarship. She plans to live and work on a New Zealand dairy farm for six months.

The $3,000 scholarship will be applied towards the AgriVenture program fee. She is a fourth-year university student pursuing an agriculture degree in animal science, genetics and molecular biology at Dalhousie University. The AgriVenture scholarship recognizes 4-H members who are leaders in their club and community. Victoria Kyle of Drumbo, Ont, the 2013 recipient, worked for four months with sheep on the island of Gotland, Sweden. n The 10th World Congress on Genetics Applied to Livestock Production (WCGALP) will be held August 17-22, 2014 at the Westin Bayshore Conference Center in Vancouver. This is the premier conference for livestock geneticists.

n Saskatchewan Angus Association general manager Belinda Wagner received special recognition and a standing ovation on the 25th anniversary of her service to the Saskatchewan Livestock Association at the recent Saskatchewan Beef Industry Conference. n Hamilton Farms of Cochrane, Alta., won Reserve Early Calf Champion Pen of Three Bulls at the 2014 National Western Stock Show’s Angus Carload and Pen Show, January 18 in Denver. The January 2014 bulls posted an average weight of 1,317 pounds and are sired by HF Rebel 53Y and HF Tiger 5T. nCattlemen’s Young Leaders: — Claire Windeyer of Didsbury, Alta.

Mentor: Cherie Copithorne-Barnes is a fourth-generation rancher living in Jumping Pound, Alta. just west of Calgary. She is the CEO of CL Ranches Ltd. and a director of the Alberta Livestock and Meat Agency.

Claire grew up in Nova Scotia and attended the University of Guelph’s Ontario Agriculture College and Ontario Veterinary College (OVC). She practised in southern Alberta before returning to OVC to do graduate

y d d a D r u o Y Who’s

11th Annual

Bull Sale

Thursday April 3, 2014 – 1:00 PM Saskatoon Livestock Sales, 306-382-8088

training in ruminant health management and work in ruminant field services. Her research investigated pre-weaning vaccination against respiratory disease in dairy calves. Claire won the Claire Windeyer D.F. Forster medal for academic achievement, motivation, leadership, and citizenship. She then volunteered in Nepal, working with rural dairy farmers through Veterinarians Without Borders. In 2011, Claire joined the University of Calgary’s faculty of veterinary medicine as an assistant professor in production animal health. Her interests are: cow-calf health management, epidemiology of infectious diseases in ruminants, pain and animal welfare, and sustainable development of health and production of ruminants in developing countries. Her current projects include: a cow-calf health management survey of producers in Alberta, and an investigation of Mycoplasma bovis in Continued on page 54

WE KNOW OUR BULLS HAVE TO BE BETTER JUST TO GET YOUR ATTENTION!

That’s why we cull hard and only sell 50 bulls a year. These are the top cut from over 400 purebred Shorthorn cows. Thick, rugged, BEEF BULLS that are bred to handle the harsh conditions of Western Canada. Also on offer a select group of flush and embryo lots.

For more information or a catalogue contact:

Saskvalley Stock Farm Carl Lehmann 306-232-3511 www.saskvalleyshorthorns.com

Bell M Farms

Richard Moellenbeck 306-287-7904 www.bellmfarms.com

Muridale Shorthorn Scot Muri 306-741-6833 www.muridale.com

Sale is broadcast by Cattle In Motion at

www.cattleinmotion.com Catalogue online at all three websites www.canadiancattlemen.ca

Sale bull videos at www.youtube.com/whosyourdaddybull C at t l e m e n · M a r c h 2 0 1 4

53

PU R E LY PU R E B R E D

Continued from page 53

farmed bison. Claire works in the Distributed Veterinary Learning Community with CowCalf Health Management Services and was selected for the Canadian Veterinary Medical Association’s Emerging Leaders Program in 2012. She lives in Didsbury, Alta., loves riding her horses in the mountains, and hopes to one day have a cow-calf operation. n The Cattlemen’s Young Leaders (CYL) program has announced the 26 semifinalists vying for 16 mentorship positions in the 2014 program year. The semifinalists were selected from a pool of nearly 50 applications, a response which CYL programs manager Jill Harvie said reflects the ongoing popularity of the youth mentorship program. “The program continues to attract a great set of beef and cattle enthusiasts every year,” she said. “We likely saw the most consistent set of applications to date — all of the applications were strong.”

The 26 semifinalists were selected based on their online applications which were evaluated by a panel of judges. The finalists will be selected at the CYL Spring Forum, March 21-22 in Calgary.

The 2014 CYL semifinalists are: • British Columbia: Erin Durrell, Williams Lake.

• Alberta: Jill Burkhardt, Gwynne; Stacey Domolewski, Taber; Laura Ecklund‚ Olds; James Jenkins, Okotoks; Tessa Nybo, Sundre; Stuart Somerville, Endiang; and Colin Verbeek, Sturgeon County.

• Saskatchewan: Tyson Buyer, Saskatoon; Shari Beamish, Maidstone; Jessica Hextall, Grenfell; Lauren Ovinge, Scandia; RaeLeigh Pederzolli, Saskatoon; Brandon Sparrow, Vanscoy; and Rob Voice, Bradwell.

• Manitoba: Kristine Blair, Woodside; Andrew Kopeechuk, Brandon; Brett McRae, Brandon; and Neil Overby, Ste. Rose du Lac. • Ontario: Elliot Armstrong, Cayuga; Scott Boese, Marysville; Amanda Broadhagen, Guelph; Kevin Hood, Feversham; Jaclyn Horenberg, Stratford; Elliot Miller, Auburn; and Elizabeth Stubbs, Caledonia.

After final selection, CYL candidates will be paired with a mentor for an eightmonth mentorship in the CYL Professional or Industry Leader categories. The professional mentorship gives candidates an opportunity to pair up with agricultural professionals to get a jump-start on a beefrelated career of their choice. The industry leader-type of mentorship pairs finalists with

54

C at t l e m e n · m a r c h 2 0 1 4

the appropriate industry representative in a specific policy area of interest, such as animal health, international trade, international and domestic marketing, environment, research or advocacy. The CYL program is a national youth initiative of the Canadian Cattlemen’s Association (CCA). Visit www.cattlemensyoungleaders.com for more information. n Justamere Ranch of Lloydminster, Sask., won Reserve Winter Bull Calf Champion honours at the 2014 National Western Stock Show Super Point Roll of Victory (ROV) Angus Show, January 15-17 with Justamere 406S Big Gun 414A. n Six Mile Red Angus Ltd. of Fir Mountain, Sask., won the Grand Champion Red Angus Bull with Six Mile Taurus 519A, a junior bull calf at the Denver Stock Show.

Six Mile Red Angus Ltd. also won Reserve Champion Junior Bull and received Premier Breeder honours as a result of their and other breeders’ success with Six Mile genetics throughout the show. n Gentec and Cattleland have signed a partnership agreement to use the Cattleland facilities for research. Collaborations have included the Canadian Cattle Genome Project, developing an EPD for residual feed intake for the Canadian Hereford Association and a continuous search for genomic markers. The deal begain in 2009. William Torres, Cattleland’s cattle and research manager is originally from Texas and had been using his American connections for research up to now because he had been unable to find the right contacts in Canada. He eventually found John Basarab at the Lacombe Research Station who passed on Torres’s name to Gentec’s Clint Brons. “Clint put us in touch with Gentec, Genome Prairie and more scientists than I have time to visit.”

The company’s research program functions on two basic principles: it must improve the bottom line and it must benefit the Canadian livestock industry. The average age of Cattleland’s employees is impossibly young. Torres, the veteran, barely has a grey hair on his head. The three full-time scientists whose daily challenge is to raise the standards in the industry average 26 years of age.

“That’s why we work well with Gentec,” says Torres. “We feed off each other’s ideas.

Everybody needs a fresh pair of eyes at some point. If we didn’t do research, we’d have to wait up to two to three years for research

to be published. Instead, we get that much head start on new knowledge.”

With a capacity of 25,000 head, Cattleland Feedyards is the largest for-profit beef research facility in Canada, using some of that capacity for up to 17,000 research animals at a time.

“Our 138 pens of various sizes are in high demand,” says Torres. “Clients book them up to 18 months in advance. Only if we don’t have research booked will we open the pens for regular commercial feeding.”

This diversity of operations makes Cattleland Feedyards an unusual operation. A typical feedlot in Western Canada has about 8,000 animals of one sex, all of the same age that two to three people can manage, feed the same diet, check for health and do the repair/maintenance. On any given day, Cattleland feeds 42 different diets to twice the number of animals, who may be there for vastly different trials.

The Saskatchewan Livestock recently presented honour scrolls to Glenn and the late Bev Bender of Neudorf; Tom and Karen Grieve of Fillmore; John A. (Jack) McDougald of Maple Creek; and Barry and Marj Young of Carievale in recognition of their contributions to the industry. Complete biographies are available on www.sasklivestock.com. c

Sales results

For more details see www.canadiancattlemen.com.

Peak Dot Ranch Bull and Female Sale Dec. 5, 2013, Wood Mountain, Sask.

149 Older bulls, gross $739,900, av. $4,966 127 Commercial bred heifers, gross $189,300, av. $1,491 276 Total, gross $929,436, av. $3,367 M.C. Quantock Livestock “Canada’s Bulls” sale

Jan 25, 2014, Lloydminster, Alta.

360 Bulls sold, av. $4,573 $5,300 and over bulls, av. $6,048 $3,800 and under bulls, av. $3,274 Lazy S Ranch Bull Power Sale Jan. 25, 2014, Mayerthorpe, Alta.

204 Black and Red Simmental, Angus and Beefmaker bulls, av. $4,732 Back to the Basics Bull Sale, MJT Herefords and Angus Feb. 8, 2014, Edgerton, Alta.

74 Black Angus two-year-old bulls, av. $4,677.82 32 Hereford two-year-old bulls, av. $5,184.44 Gross, $512,06

www.canadiancattlemen.ca

 Market Su mma ry

By Debbie McMillin

TheMarkets Fed cattle Fed-cattle prices exploded into 2014. Fed steers jumped almost $12/cwt in the first four weeks to average a record breaking $142.50 before tailing off to $135.09 by mid-February, which was still better than $20/cwt above last year at this time.

Tight supplies of market-ready fed cattle, a lower Canadian dollar, a rally in the cutout price, plus smaller carcass weights and good post-Christmas demand, all added fuel to this price bomb.

While prices remain high in 2014, the basis remains frustratingly wide, holding at -17.70/cwt at mid-February. The average cash-to-cash basis during the first six weeks of 2014 was -19.45/cwt, versus a five-year average that is closer to -9.

The total on feed in Alberta and Saskatchewan on February 1 was 979,133 head, up 10 per cent from last year fuelled by a 93 per cent increase in placements year over year in January. Domestic steer slaughter was also up 10 per cent to 153,356 head and heifer slaughter increased by 17 per cent to 77,660 head at mid-February. Not surprisingly given the weak basis and low dollar U.S. buyers

pushed feeder exports up by seven per cent at the same time.

Feeder Cattle Feeder cattle prices have moved right along with the fed cattle so far in 2014. A high fed market combined with a 45 per cent drop in barley prices, strong export market and four-year-low Canadian dollar shoved 550-lb. Alberta steers to $198/ cwt at mid-February, an increase of $26.50 from January 1 and $41.50 better than a year ago. Auction market volumes were very large throughout January and early February as cow-calf producers and backgrounders took advantage of the strong market. The 850-lb. steers averaged $165/ cwt at press time, up $16 from the start of the year and $36.84 better than last year.

As with the fed cattle, the feeder basis in 2014 continues to disappoint. The current 850-lb. feeder basis is -$23.12/cwt while the five-year average for the current week is closer to -$13/cwt. The wider basis and low Canadian dollar have attracted U.S. buyers. To date they’ve bought 24,378 feeders, an increase of 62 per cent from the same period in 2013.

Non-Fed Cattle The strong fed market also drove up prices on cows and bulls but while the fed market slipped back in February cow prices continued to surge ahead. D1,2 cows averaged $88.42 by mid-month, a gain of nearly $9 from Jan.1 and $14.52 ahead of last year. The release of U.S. inventory numbers showing another year of decline in the U.S. cow herd pressured buyers on both sides of the U.S./Canada border. So far, the U.S. buyers appear to have the upper hand. Domestic cow slaughter is down seven per cent at 9,473 head to date while exports are up 14 per cent as 33,457 head crossed the border.

Bull prices follow a similar trend posting a mid-month average of $91.36/cwt. Bull numbers are always small this time of year with a domestic slaughter of 416 head, although that is three times what it was last year. Export shipments of bulls were down seven per cent at 5,319 head. c Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets 

 DE B’S OUTLOOK Fed Cattle While the fed market has corrected slightly from the highs seen a couple weeks ago fundamentally it is still poised to remain strong moving forward. North American supplies should remain tight for the next couple months as the seasonal spring demand for finished cattle starts to grow. In Canada, we currently have the lowest Canadian dollar seen in over four years and carcass weights averaging 38 pounds lighter than a year ago. One factor to watch will be the reaction to the higher beef prices as they get passed along to the consumer at the retail level.

www.canadiancattlemen.ca

Feeder Cattle Feeding margins remain profitable and feeder cattle are still trading in a range where feedlots have an opportunity to hedge a profit. Current grain prices and cost of gain support feeder prices. Feeder volumes have been large to date in 2014, and as the supplies tighten moving forward demand for the cattle will pick up some strength, particularly for the lighter feeders. Grass buyers will still be looking to fill their requirements while the lower Canadian dollar and wide basis will keep U.S. buyers active in this market. Heavy feeders will

retain good support, just not as much as the grass cattle. Overall expect a strong feeder market as we move into spring.

Non-Fed Cattle D1,2 cows generally strengthen at this time of year as producers finish moving the open or management cows to clear some pens for calving season. The demand for cows will remain strong, particularly cows in good condition. U.S. buyers facing a tight cow supply at home and a low Canadian dollar will continue to put a solid floor under this market.

C a t t l e m e n · m a r c h 2 0 1 4 55

M A R K ETS

Break-even Prices on A-Grade Steers 150

ALBERTA

140

155

110

145

Steer Calves (500-600 lb.)

185

165

120

155

195

175

130

100

Market Prices

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

ONTARIO

135

135

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

95

D1,2 Cows

85 75

125

65

115

55

105 95 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Canfax weighted average price on A-Grade steers

Break-even price for steers on date sold

2014 2013

2014 2013

February 2014 prices* Alberta Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . $158.80/cwt Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.44/bu.

Barley silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.00/ton Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 53.63/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 83.00/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138.52/cwt Break-even (July 2014) . . . . . . . . . . . . . . . . . . . . 129.02/cwt Ontario Yearling steers (850 lb.) . . . . . . . . . . . . . . . . . . . $161.67/cwt Corn silage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.28/ton Grain corn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.41/bu.

Cost of gain (feed) . . . . . . . . . . . . . . . . . . . . . . . . . 69.32/cwt Cost of gain (all costs) . . . . . . . . . . . . . . . . . . . . . 95.26/cwt Fed steers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.29/cwt Break-even (August 2014) . . . . . . . . . . . . . . . . . 134.19/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

45

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

Ontario

Alberta

2014 2013

2014 2013

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

Market Summary (to February 8) 2014

2013

Total Canadian federally inspected slaughter. . . . . . . . . . . . . . . . 294,531. . . . . . . . . . . 275,839 Average steer carcass weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848 lb.. . . . . . . . . . . . 886 lb.

Total U.S. slaughter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,189,000. . . . . . . . 3,508,000

Trade Summary Exports 2013-14 2012-13 Fed cattle to U.S. (to February 1, 2014) . . . . . . . . . . . . . . . . . . . . . . . 30,861.. . . . . . . . . . . .28,708 Feeder cattle and calves to U.S. (to February 1, 2014). . . . . . . . . 24,378.. . . . . . . . . . . . 15,059 Dressed beef to U.S. (to December 2013). . . . . . . . . . . . . 435.60 mil.lbs.. . . . . 435.14 mil.lbs Total dressed beef (to December 2013) . . . . . . . . . . . . . . . 615.72 mil.lbs.. . . . . 597.55 mil.lbs 2013 IMPORTS 2012 Slaughter cattle from U.S. (to December) . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . 0 *Dressed beef from U.S. (to December) . . . . . . . . . . . . . . 363.04 mil.lbs. . . . . . 374.14 mil.lbs *Dressed beef from Australia (to December) . . . . . . . . . . 38.92 mil.lbs. . . . . . .34.58 mil.lbs *Dressed beef from New Zealand (to December) . . . . . . . 33.75 mil.lbs. . . . . . 46.46 mil.lbs *Dressed beef from Uruguay (to December) . . . . . . . . . . . 27.43 mil.lbs. . . . . . . 24.62 mil.lbs Canadian Grades (to February 8, 2014) % of A grades +59% 54-58% AAA 24.0 21.9 AA 28.6 9.6 A 1.4 0. 1 Prime 0.2 0.4 Total 32.0 54.2

EAST WEST

Total graded 67,958 223,271

Yield – 53% Total 9.8 55.7 1.9 40.1 0.0 1.5 0.7 1.3 12.4 Total A grade 98.6%

Total ungraded 3,300 2

% carcass basis 76.1% 88.6% Only federally inspected plants

56

C at t l e m e n ¡ m a r c h 2 0 1 4

www.canadiancattlemen.ca

 market ta l k

By Gerald Klassen

Feeder Cattle Market Outlook

C

anadian feeder cattle prices have traded at record highs over the past month due to lower feed grain values and historically strong fed-cattle markets.

Cattle inventories continue to shrink in Canada and the U.S. and the market is functioning to encourage expansion which has also contributed to the higher price structure.

The market can become extremely volatile at extreme highs whereby values from week to week can be quite variable. We all know how the market dynamics can change within a short period of time and the financial risk has certainly increased.

I’ve received many inquiries in regards to the price outlook for feeder cattle as calving season starts for another year; therefore, I thought this would be a good time to provide an overview of the market influences which will be driving the feeder market throughout 2014.

The two most important factors influencing prices of feeder cattle are the price of feed grains and the expected selling price of the finished animal.

The December 31 Statistics Canada grain stocks report was considered supportive to the market and suggested that 2013 barley yields may have been overstated. Statistics Canada estimated domestic feed barley usage from August 1 to December 31 at 3.7 million mt, up from 2.9 million mt during the same period of 2012.

Wheat used for feed consumption for the same period was estimated at 3.6 million mt, compared to 2.9 million mt last year. Combined domestic feed usage of wheat and barley was up nearly 1.7 million mt during the first five months of the crop year which is a bit high given the cattle-on-feed inventories and overall hog numbers.

I’m still projecting a Canadian carry-out of nearly 2.8 million mt which is up from a 10-year average of 2.1 million mt so stocks will remain burdensome until the end of the crop year.

Looking forward, the industry is anticipating a marginal yearover-year decline in Canadian barley acreage. For 2014-15, the carry-out will likely finish closer to 2.4 million mt which is closer to the 10-year average. Barley prices in Western Canada stabilized during late winter and appear to be trading in the range of $150 to $156/mt delivered the feedlot in southern Alberta.

The main point is feed grain prices are not getting “more bearish” but rather neutral for the time being and then, depending on the upcoming crop size, we could see slightly higher prices in the fall given the lower production. This will temper the upside potential in the feeder market.

Fed-cattle prices also reached record highs in late January which resulted in very strong feeding margins and provided some breathing room on buying replacement cattle. Fed-cattle prices in the U.S. peaked out at $150/cwt while Alberta values topped at $148.50/cwt.

At the time of writing this article, the Alberta market has dropped to $139/cwt. Seasonally fed-cattle prices generally stay firm into the March period and then come under pressure as sec-

www.canadiancattlemen.ca

u.s. quarterly beef production (million pounds)

Quarter

2010

2011

2012

2013

Estimated 2104

1

6,251

6,411

6,283

6,172

5,825

2

6,547

6,559

6,475

6,517

6,260

3

6,768

6,737

6,584

6,608

6,235

4

6,741

6,492

6,571

6,420

6,030

TOTAL

26,307

26,199

25,913

25,717

24,350

ond-quarter beef production increases. In past years actual beef production tended to come in larger than projected which further weighs on prices once these supplies materialize. Carcass weights have been running above year-ago levels and this will likely continue into the summer.

Consumer spending also tends to top out in March and eases slightly into the summer. Adverse weather in Eastern Canada and the eastern U.S. seaboard has caused restaurant traffic to come in lower than expected and weather conditions will continue to be a main factor for restaurant demand during the spring and summer. For 2013, American “away from home” food spending was up 13.3 per cent over 2012 while “at home” food spending was up a marginal 3.3 per cent. It’s important to note that disposable income has not increased for the average consumer so it will be difficult to sustain higher values at the retail level. It usually takes about four months for restaurants to adjust menu prices.

I’m expecting Alberta fed-cattle prices in the summer months to drop to the range of $125 to $132/cwt. Break-even values on 850pound steers bought in early February are in the range of $129/ cwt to $132/cwt. While feeding margins have been quite healthy through the winter, we can expect margins to narrow in the summer and fall period. This will also weigh on feeder cattle prices.

In conclusion, I feel that feeder cattle prices have likely topped out. Values for replacement cattle are expected to stay firm through March and then start to trend lower into the summer following the prices of fed cattle. Narrower feeding margins will weigh on the price of replacement cattle in the second and third quarters.

Canadian barley and U.S. corn production will have a large influence on feeder cattle prices during the September through December period. Cow-calf producers will want to be more aggressive sellers in the short term. If you plan on selling calves in the summer, it would be prudent to have some price protection in place. Backgrounding operators should also have some price insurance on current purchases. We all know how the market behaved back in 2011 and 2012 and buying feeder cattle in late winter or early spring can be very risky. c Gerald Klassen analyzes markets in Winnipeg and also maintains an interest in the family feedlot in southern Alberta. He can be reached at gklassen7@hotmail.com.

C at t l e m e n · M a r c h 2 0 1 4

57

 GOINGS ON

 A DV E RT IS E R IN DEX

Sales&Events Events March 13

anadian Beef Breeds Council Annual C General Meeting, Calgary, Alta.

21-22 Cattlemen’s Young Leaders Spring Forum, CCA Offices, Calgary, Alta.

26-27 Alberta Farm Animal Care — 2014 Livestock Care Conference, Four Points Sheraton-South, Edmonton, Alta.

28-29 New Brunswick Spring Beef Conference, Crowne Plaza, Moncton, N.B., www.bovinsnbcattle.ca 29-31 Farm and Ranch Show, Expo Centre, Edmonton, Alta.

April 5-6

S askatchewan Beef Expo, Prairieland Park, Saskatoon, Sask., www. saskatchewanbeefexpo.com 11 Canadian Western Agribition Annual General Meeting, Evraz Place — Queensbury Salon, Regina, Sask.

28-29 Advancing Women — Women in Ag Life Skills for Leadership Conference & Casino, Deerfoot Inn, Calgary, Alta., www.advancingwomenconference.ca

June 5-7

13-14 16 18-20 18-21 22-26 27

anadian Angus Association Convention, C Temple Gardens Mineral Spa, Moose Jaw, Sask.

Canadian Shorthorn Annual General Meeting, Elkhorn Resort, Riding Mountain National Park, Man. Canadian Beef Breeds Council Golf Tournament, Heather Glen Golf course, Calgary, Alta.

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

Beef Improvement Federation Symposium, Cornhusker Marriot, Lincoln, Nebraska World Congress on Conservation Agriculture, Winnipeg Convention Centre, Winnipeg, Man. Canadian Charolais Association Annual General Meeting, Renfrew, Ont.

July 4-6 9

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

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

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

25-27 2014 Canadian Simmental Association AGM, Elkhorn Resort, Riding Mountain National Park, Man. 25-27 YCSA National Classic, Elkhorn Resort, Riding Mountain National Park, Man. 30-Aug. 2 Saskatchewan YCSA Classic, Prince Albert, Sask.

August 1-3

1-3

58

anadian Junior Shorthorn National Show, C Neepawa, Man. Manitoba All Breeds Youth Round-up, Neepawa, Man.

C at t l e m e n · m a r c h 2 0 1 4

Page Advanced Agri Direct 21 10 Advancing Women Airdrie Trailer 51 19 Beefbooster 11 Brett Young Seeds

By Livestock 31 47 Canadian Agri-Blend Canadian Angus Assoc.

51 OBC Canadian Charolais Assoc.

Canadian Gelbvieh Assoc.

50 Canadian Hereford Assoc.

IFC Canadian Limousin Assoc.

26, 27 Canadian Red Angus Promotion Society 9 35 Canadian Shorthorn Assoc.

13 Canadian Simmental Assoc.

Case-IH 7 Double D Custom Hats 51 48 Eionmor Stock Farm Farm Credit Canada 14 Flying K Ranch 47 Greener Pastures 39 Hi-Hog Farm & Ranch Equipment 51 39 International Livestock Congress International Stock Foods 50 JAS Red Angus 49 John Deere Ag Marketing Center 22, 23 Justamere Farms 37 14 a-p Lakeland Group/Northstar Matchmaker Select 50 51 Mel Stewart Holdings 43 Merck Animal Health Nerbas Brothers Inc. 45 North American Lincoln Red Angus 50 Peak Dot Ranch 41 51 Plain Jans 52 Real Industries Red Rock Red Angus 48 Right Cross 20 Riverside Welding 50 47 Royal Manitoba Winter Fair 51 Salers Assoc. of Canada Short Grass Sales 33 The Cattle Range 15 Tru-Test Inc. 49 IBC Vermeer Corporation Who’s Your Daddy Bull Sale 53 Zoetis Animal Health 5, 17, 29

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

November

24-29 C anadian Western Agribition, Evraz Place, Regina, Sask.

Sales

1

avidson Gelbvieh & Lonesome Dove D Ranch 25th Anniversary Bull Sale, Bull Yards, Ponteix, Sask.

Belvin Angus Bull Sale, at the farm, Innisfail, Alta.

In Pursuit of Perfection Bull Sale — Spring Creek Simmentals, at the farm, Moosomin, Sask.

Richmond Ranch 17th Annual Grass Country Limousin Bull Sale, at the ranch, Rumsey, Alta., www.richmondranch.com Harvie Ranching Bull Sale — Polled Hereford, Charolais, Simmental, at the ranch, Olds, Alta.

Triple V Ranch — Red & Black Angus twoyear-old Bull Sale, at the ranch, Melita, Man. North Alliance Bull Sale — Aumack Simmentals, Spiritwood Stockyards, Spiritwood, Sask.

Reese Cattle Company — Charolais Bull Sale, Innisfail Auction Mart, Innisfail, Alta.

28th Annual LLB Angus Bull & Female Sale, at the farm, Erskine, Alta.

Spruceview Angus Bull Sale, at the ranch, Killam, Alta.

Pugh Farms Spring Bull Sale, Dryland Cattle Trading Corp., Veteran, Alta.

Bar 3R Limousin 19th Annual Bull Sale, Crossroads Centre, Oyen, Alta.

Braun Ranch & Bar CR — Ranch Ready Bull Sale, Heartland Livestock, Swift Current, Sask.

Maple Lake Stock Farms — Kick Off to Spring Bull Sale, Grande Clairiere Hall, Hartney, Man. Right Cross Ranch 3rd Annual Red & Black Angus Bull Sale, at the ranch, Kisbey, Sask., www.rightcrossranch.com 10th Annual Focus on the Future Bull Sale, Wheatland Cattle Co., Alameda, Sask.

Summit 3 Speckle Park Sale, Northlands, Edmonton, Alta.

Anderson Cattle Co., at the farm, Swan River, Man.

March

4 6 7 10 12 14 14 15 19 19 20 20 21 26 27 29 29

April 1

2 2 4

5

J AS Red Angus — 10th Annual Buy the Beef Bull Sale, Neepawa Ag Complex, Neepawa, Man. Peak Dot Ranch Bull and Female Sale, at the ranch, Wood Mountain, Sask.

11th Annual Who’s Your Daddy Bull Sale, Saskatoon Livestock Sales, Saskatoon, Sask.

Northern Progress Bull Sale — RSL Red Angus and Stittalburn Farms, Red & Black Angus Bulls — two-year-olds and yearlings, Saskatoon Livestock Sales, Saskatoon, Sask.

Lauron Red Angus & Guests 23rd Annual Bull Sale, Cow Palace, Olds, Alta.

5 8 9 9 11 14 14 18 19 19

rescent Creek Angus 16th Annual Bull & C Female Sale, at the farm, Goodeve, Sask.

Rodgers Red Angus/Lone Tree Ranching 41st Annual Performance Test Bull Sale, Perlich Bros. Auction Mart, Lethbridge, Alta.

Rivercrest — Valleymere 11th Annual Spady Bull Sale, Rivercrest Ranch, Alliance, Alta.

Flying K Ranch Bull Sale, at the ranch, Swift Current, Sask.

Johnston — Fertile Valley Bull Sale, Saskatoon Livestock Sales, Saskatoon, Sask.

Justamere 19th Annual Bull Sale — 60 Black Angus Bulls, at the farm, Lloydminster, Sask.

Moose Creek Red Angus Sale, at the farm, Kisbey, Sask.

South Shadow Angus — Your Choice Bull Sale, Cowtown, Maple Creek, Sask.

Shortgrass Angus Bull & Female Sale, at the ranch, Aneroid, Sask.

WRAZ Red Angus — Cornerstone More Bang for Your Buck Bull Sale, Whitewood Auction Mart, Whitewood, Sask. c

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

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

www.canadiancattlemen.ca

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