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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

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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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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

F

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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Still a Long Way to Go

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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).

www.canadiancattlemen.ca

Forage

GUIDE

Grassland

Canadian Forage and Grassland Association

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When it comes to forages, the true leaders follow the herd.

Canadian Forage and Grassland Association

Welcome to Forage & Grassland Guide, a new annual publication produced in partnership by the Canadian Forage & Grassland Association (CFGA) and Farm Business Communications and distributed through Country Guide, Canadian Cattlemen and Le Bulletin des agriculteurs. It focuses on issues of importance of forage and grassland to crop and livestock producers across Canada.

For more information on forage and grassland management in your area, we encourage you to contact and participate in the activities of your regional or provincial association.

Canadian Forage & Grassland Association Ron Pidskalny, CFGA Executive Director 11312 – 57 Avenue NW Edmonton, AB T6H 0Z9 (780) 430-3020 pidskaln@gmail.com canadianfga.ca Manitoba Forage & Grassland Association Wanda McFadyen (204) 475-2241 wanda@mfga.net www.mfga.net Saskatchewan Forage Council Leanne Thompson (306) 969-2666 office@saskforage.ca saskforage.ca

Alberta Forage Industry Network Lyndon Mansell (780) 592-2262 info@albertaforages.ca albertaforages.ca Ontario Forage Council Ray Robertson (519) 986-1484 info@ontarioforagecouncil.com ontarioforagecouncil.com Quebec Forage Council / Conseil québécois des plantes fourragères Nathalie Gentesse (418) 563-1104 cqpf@yahoo.ca cqpf.ca

Ontario Soil and Crop Improvement Association Harold Rudy (519) 826-4217 harold.rudy@ontariosoilcrop.org ontariosoilcrop.org B.C. Forage Council Fran Teitge (250) 267-6522 bcfc@bcforagecouncil.com farmwest.com/bc-forage-council Soil & Crop Improvement Association of Nova Scotia Carol Versteeg (902) 758-3530 carol.versteeg@ns.sympatico.ca scians.org

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2014

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Forage & Grassland Guide

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Three overarching issues for forage and grassland in Canada Regional groups across Canada agree on the need for more recognition and research

By ron pidskalny, executive director, Canadian Forage & Grassland Association (CFGA)

C

anada has about 33 million acres of cultivated forage crops and an additional 36 million acres of native or unimproved pastures and rangeland. While many think of native pasture as “unimproved,” those with a true appreciation for the value of forage and grassland tend to think of it as “naturally perfect.”

These 69 million acres generate almost $5.1 billion in economic activity for Canadians annually. This economic activity does not include the value of the environmental goods and services (EGS) contributed by the forage industry to Canadians in terms of climate change mitigation, erosion control, pollination services, recreation, wildlife habitat preservation, or the regulation, protection and improvement of water resources.

A multi-level analysis of Saskatchewan’s forage industry suggested that the indirect value of EGS could be worth over 2-1/2 times as much as the direct economic value — suggesting that Canadians receive almost $13 billion in value from their forage and grassland resources each year.

As stewards of Canada’s forage and grassland resources, CFGA met with its forage council and soil and crop improvement association members at its recent annual conference. All agreed that while each region has its own set of unique concerns and areas on which they need to focus, CFGA would speak as the “national voice” on forage and grassland issues. The group identified three overarching issues.

Environmental goods and services (EGS)

CFGA and its member stakeholders recognize that society needs to be convinced of its obligation to support the environmental value contributed through the good stewardship of the forage and rangeland resources of agricultural landowners. We also see that there are a number of independent, well-respected and trusted environmental groups that could help CFGA improve the recognition of the value of EGS. To this end, CFGA, through its environment committee will engage in a selection process to establish a formal partnership with an appropriate conservation organization.

Forage and grassland research capacity

Provincial stakeholders understand that each region has a number of key educational and government research institutions and important pieces of infrastructure that must be protected in order to maintain and improve forage research capacity. These resources include a number of dairy- and livestock-related operations.

We also understand that a number of research scientists and academics have moved away from basic and applied research, and into administrative roles. CFGA, in conjunction with its stakeholders, will help target areas in which these losses have occurred and play an important role in the development of a strategic plan to revitalize forage research across Canada.

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Forage & Grassland Guide

Key educational and government research institutions must be protected in order to maintain and improve forage research capacity.

As part of this process, we also need to recognize that industry has research and development capacity as well, and could work in conjunction with the public sector to further forage and grassland research.

Canadian research capacity will be important in the development and implementation of a national independent forage variety testing program. Survey results suggest that forage stakeholders, overwhelmingly, would like to see testing at a regional level. CFGA and its provincial and federal forage research stakeholders propose four testing regions: Atlantic Canada, Eastern Canada, the Prairies and British Columbia.

Infrastructure is in place and all regions may have the capacity to conduct variety trials, with the exception of British Columbia. The cost of setting up a variety testing program in each region is around $500,000, for an initial setup cost of about $2 million. Some regions and provinces have variety testing programs in place, and will be well served, but CFGA does not have the resources, currently, to set up and maintain a national variety testing program.

The marginalization of forages

A trend that CFGA’s forage council and soil and crop improvement association members find disconcerting, is the displacement of forage crops from better land in favour of higher-value annual crops. As the value of annual crops relative to forages increases, forages tend to be relegated to increasingly marginal and less productive land. Forage seed production is also dropping as seed producers move to annual crop production — and away from the perennial systems required to produce forage for seed. Many also feel that agricultural producers need to make good use of better land to raise forages or the dairy and livestock sector (cattle and sheep, among others) will experience a loss in capacity to extract value from forage crops. Ultimately, we are all in the solar energy business — capturing a renewable source of energy from the sun to produce protein for human diets. n

2014

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Prairie grassland is everyone’s concern Continued fragmentation and degradation bringing solutions forward for producers, governments and conservation interests

By Duncan Morrison

T

he prairies of North America have declined 79 per cent since the early 1800s. A 2013 report by Roch and Jaeger on grassland fragmentation in the Canadian Prairies says that by 2003, over 97 per cent of tall-grass prairie, 71 per cent of mixed prairie and 48 per cent of short-grass prairie had been lost in North America.

While most of this loss occurred before the 1930s, alteration and degradation continues, with small patches being affected the most. This purge has catapulted grasslands to the dubious distinction of North America’s most endangered ecosystem.

There are glimmers of hope.

Governments, producer groups and conservation groups are increasingly demonstrating the benefits of grasslands to producers.

That was one of the reasons for the Manitoba Forage Council changing its name to Manitoba Forage and Grassland Association (MFGA).

“Grasslands are such a critical part of Manitoba’s agricultural scene whether they are native grasslands that are still in place or forages,” says Wanda McFadyen, MFGA’s executive director. “We are dedicated to the development and promotion of sustainable hay, forage and livestock industry and the protection of our land, waterways and wildlife diversity.”

McFadyen says that the producers looking for forage and grassland solutions are quick to learn and quick to act once they are up to speed on programs available.

“I think more producers are start-

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Forage & Grassland Guide

Grassland Ecosystem Services Disperse seeds

Maintain biodiversity

Mitigate drought and floods

Generate and preserve soils

Cycle and move nutrients

Stabilize climate

Detoxify and decompose waste

Protect watersheds

Control agricultural pests

Pollinate crops and natural vegetation

*Source: The Importance of Wetlands and Grassland on the Prairies: Forage and Grassland Opportunities; Canadian Forage and Grassland Association Conference presentation by Pascal Badiou, DUC research scientist.

ing to understand that with more tools in their tool box to manage the various grassland scenarios on their operation that they are not only seeing diversity in the area of sustainability but economic benefits as well.”

McFadyen says the MFGA represents some of the most visionary producers in the province, regardless of crop. They know the markets and they are able to identify best options for the bottom line of their farm.

Somewhat surprisingly, despite the recent attention to corn, canola and grain, forages hold their own from an economic perspective.

“A producer’s ultimate motivation to manage grasslands should be profit,” says Glenn Friesen of Manitoba Agriculture, Food and Rural Development (MAFRD). “If producers don’t profit from grasslands, we won’t have producers managing the grasslands.

And well-managed grasslands continue to give back to producers and society by providing environmental benefits they are known for.”

Friesen says that MAFRD’s marginal returns over total operating costs (net profit) analysis shows that growing and selling forage crops provide higher return on average than

2014

all but winter wheat in Manitoba. He adds that properly grazing grasslands adds additional value to the land base.

Conservation incentive

Conservation groups are also tackling the issue head on. Ducks Unlimited Canada (DUC), Nature Conservancy Canada (NCC), and Manitoba Habitat Heritage Corporation (MHHC) ave a wide range of producer incentive programs aimed at providing more tools for producers to maintain and increase grasslands.

“Simply put, grasslands are one of the most threatened habitats in Manitoba. If we recognize that we have similar interest, working together becomes easy,” says Tim Sopuck, MHHC’s chief executive officer. “I believe that the biggest habitat conservation group in Manitoba is cowcalf producers because their operations fit so well with native land conservation, especially native grasslands.”

Sopuck says grasslands are “a marvellous reservoir of biodiversity” that can be maintained or enhanced through sustainable grazing practices.

DUC has been actively working with producers on the land for years via programs such as grazing clubs, rotational grazing and forage incentive programs. It also has dedicated science to highlight the values of wetlands and grasslands as critical components of the healthy prairie landscape for producers, society and wildlife.

“Grassland and wetland loss has had a dramatic effect on water quality, water quantity and soil organic carbon stores across Canada,” says Pascal Badiou, a research scientist for DUC. “If this loss is allowed to continue, past, current and future investments in expensive infrastructure such as water treatment facilities, flood mitigation and climate change mitigation will become increasingly less efficient.”

For NCC, grasslands are a high-priority biodiversity target.

“Grasslands are one of the most impacted ecosystem types on the globe and provide habitat for many species of risk on the Prairies,” says Kevin Teneycke, NCC’s director of conservation. “Grassland conservation is an effort that requires the collaborative assistance of a number of organizations and individuals at a landscape scale.”

Teneycke says his organization is keenly watching the developments around the divestiture of the federal community pasture program in Manitoba. Within each of their own parameters and priorities, MHHC, DUC, and NCC believe that there are significant opportunities for governments, landowners, livestock producers and conservation organizations to work together to maintain intact high-quality grassland habitats and promoting the benefits of forages. Producer groups such as MFGA and CFGA also have important valuable roles to play in the equation.

The message, according to MAFRD’s Friesen, should resonate with one group in particular.

“Anyone with cattle should be motivated because well-managed grasslands are the lowest cost, nutrientbalanced feed source,” he says. “They can also provide excellent unconfined winter feeding grounds. They capture rain where it lands, providing grazing options during dry times.” n

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Clubs hold informal meetings to acquire information on local grazing issues from expert speakers and researchers.

Sharing knowledge through grazing clubs Ducks Unlimited assists local groups to hold meetings and tours

By Duncan Morrison grazing club is a community of producers who work together to improve the grazing management of their pastures. Community knowledge is critical, as is learning from others in the club. Ducks Unlimited Canada initiated the first grazing club program in Manitoba in 1999.

“We really are focusing on getting the most out of our pastures and helping producers and landowners make the best decisions they possibly can on the environmental and economic fronts,” says Michael Thiele, grazing club co-ordinator.

Thiele says there is growing interest in holistic management — a decision-making process that helps producers make better decisions that benefit the people, the land and the bottom line. Clubs hold informal meetings to acquire information on local grazing issues from expert speakers and researchers. Pasture tours are utilized to provide hands-on exposure to new forages, livestock watering systems, and pasture management techniques. Thiele says the information provided is always well received.

“There is a need for good information and producers are looking for new ideas and technologies that better the environment and their bottom line,” says Thiele. “This is one way producers can learn other ways and methods of running their operations.”

More information on grazing clubs can be found on Ducks Unlimited Canada’s website. n

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F o r a g e & G r a s s l a n d Gu i d e

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Cutting forages in afternoon yields benefits Research shows starch levels in forages peak 11-13 hours after sunrise

By Hugh Maynard

I

f you cut forages in the afternoon you can improve the digestibility of your dairy feed. Higher levels of non-structural carbohydrates (NSC) can promote the synthesis of microbial proteins, lead to a more efficient use of dietary nitrogen (N) and result in a five to 10 per cent increase in milk production.

Late-afternoon cutting is one of several factors that increase NSC levels in a variety of forage species, from alfalfa to timothy. Other factors are management of nitrogen fertilization for forage grasses and wilting conditions, particularly laying the cut forages in wide swaths to promote more rapid drying.

This is the primary conclusion from research led by Robert Berthiaume, an expert in forage systems at Valacta, the dairy production centre of expertise for Quebec and the Atlantic provinces. He collaborated with a multidisciplinary team of researchers from Agriculture and Agri-Food Canada and Université Laval to look at different ways to increase non-structural carbohydrates in forages for dairy cattle.

Plant matter is composed of about 75 per cent carbohydrates, and NSCs are the simple sugars such as glucose, fructose, lactose, sucrose and starch.

Increases in NSC levels reduce proteolysis (the breakdown of proteins into amino acids) in the silo and balances the supply of fermentable energy and rumen degradable protein which, in turn, enhances ammonia capture by ruminal microbes. Legumes and grasses with high NSC levels also tend to have lower concentrations of acid detergent fibre and neutral detergent fibre.

Wider swaths

Berthiaume says that the time of cutting has the most effect on increasing the level of NSC in forages, mostly due to the higher levels of starch present in the plant later in the day, which peaks 11-13 hours after sunrise. He notes that cutting the forage into wide swaths also has additional payback.

“The wide swathing technique has become more popular because it helps improve sugar levels and the

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Forage & Grassland Guide

Late-afternoon cutting is one of several factors that increase NSC levels in a variety of forage species, from alfalfa to timothy.

quality of the forage, so it has a double benefit,” he says.

The research by Berthiaume’s team shows that NSC loss is minimal for late-afternoon-cut alfalfa lying on the ground overnight and the plants will resume photosynthesis the following morning for up to three hours, the same as morning-cut forage. This means that the extra NSC levels accruing from late-day cutting more than offset any losses during the night, weather conditions notwithstanding of course.

Nitrogen fertilization is the next most important factor in enhancing NSC levels in forages, particularly for grasses. The key is to balance forage quality and yields.

Lower nitrogen fertilization can increase NSC and reduce crude protein concentrations, both of which improve the use of nitrogen in cattle.

Too little fertilizer, however, can affect yields, so the trick is to balance the two aspects in order to enhance quality while maintaining reasonable yields.

The level of NSC does vary by forage species but Berthiaume’s work indicates there is insufficient research to make recommendations on combinations of legumes or grasses that will enhance NSC concentrations. He notes that recent research in Eastern Canada shows alfalfa has similar NSC levels to timothy but that the types of NSCs present in legumes and grasses are different.

Starch and pinitol are carbohydrates found in legumes, but not in grasses, that contribute to increased NSC levels. On the other hand, fructans, a reserve carbohydrate found in grasses, doesn’t seem to have the same effect. Therefore it’s difficult to assume that red clover mixed with tall fescue, both considered to be the species containing the highest NSC levels for legumes and grasses respectively, make the best combination of plants when trying to maximize NSC levels in the field.

Berthiaume notes that genetic selection shows potential for improved cultivars with increased levels of NSC. The U.K. has developed varieties of perennial ryegrass with higher sugar concentrations with the aim of improving forage intake and milk production and their studies show improved breeding can increase levels of available carbohydrates in alfalfa.

“We’d like to do more research that can be applied on the farm such as genetic selection for what we call ‘sweet alfalfa.’ We could get practical results faster with genetically modified cultivars but producers don’t want to use them so it will take time through traditional breeding techniques,” Berthiaume said. n Hugh Maynard is a specialist in agricultural communications located in Ormstown, Que.

2014

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Finding the ‘right’ way to inter-seed cover crops An older practice finds new life with growers wanting improved soil stability, reduced erosion

By Ralph Pearce, country guide

T

raditionally, when one thinks of “cover crops,” what usually comes to mind is red clover following winter wheat. In the past five to 10 years, there have been more cases of growers working with oilseed radish or rye or oats as covers, all with the primary goal of keeping that cereal field growing through the fall season.

Within that same time frame, there’s been increasing interest in inter-seeding cover crops into corn, and making better use of those crops in the rotation. In the U.S., some growers are hiring aerial applicators to seed covers into standing corn and soybeans. The move has also garnered some interest in Canada, with some who grow corn for silage, seed corn or those just looking to enhance the long-term impact on the health of their soils.

Anne Verhallen, horticultural soil management specialist with the Ontario Ministry of Agriculture and Food (OMAF), is also learning more about the practice. She has several growers who participate in field-scale trials and has been working with Laura Van Eerd at the University of Guelph’s Ridgetown Campus, all in the search for the right choice of cover crops, and just as important, the right timing for seeding into a standing crop. Verhallen has also toured parts of the U.S. and Quebec to see various sites where growers are engaged in inter-seeding cover crops.

At the 2013 edition of Canada’s Out-

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door Farm Show, she played host to a demonstration plot for Ontario Soil and Crop Improvement Association, showing cover crops seeded into field corn at various stages of the growing season. And the results have her convinced there’s more to research.

Quantifying benefits

For the past few years, the focus has been on getting growers to include cover crops in their rotation. Interseeding in field corn offers another opportunity. Verhallen says that before they can begin the process of quantifying the benefits — nutrients left behind, or improved soil organic matter — the first order of business is to determine the best types of cover crops and the timing on planting.

“It’s a whole systems approach, where you’re building the diversity, you’re building structure, you’re building soil that’s going to be more resilient and responsive, so it’s incremental changes,” says Verhallen. “I think that (Van Eerd’s) work has shown that what we can get out of the cover crops is that it’s not costing us money, it’s a break-even deal, it’s generally not an adverse effect, and that’s not looking at erosion control.

And the cover crops that we’re working on aren’t going to generate a lot of nitrogen, unless we are putting in an alfalfa or clovers. But ryegrass certainly isn’t nor is oilseed radish.”

Inter-seeding corn isn’t difficult or expensive, says Verhallen. It’s often

a matter of trial and error, and finding what works best. Some growers have built their own seeding units, which she says are not complex or costly. And if growers opt out of interseeding covers, they may be able to dismantle the seeding configuration and make it work for another aspect of the operation.

One grower Verhallen has worked with tried four different cover crops seeded at different times of the growing season — oats, rye, ryegrass and alfalfa.

“They’re all fairly good at sitting under a canopy, they’re fairly small seeded and you’re hoping you get enough growth out of them to make a difference,” says Verhallen, adding

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1

3

1 2 3

uebec growers are inter-seeding their cover crops earlier in the season, Q around the five- to six- to seven-leaf stage, prior to full canopy.

Although they won’t generate a lot of nitrogen, inter-seeding oats, rye or ryegrass as a cover crop will help build diversity and resilience in the soil.

2 that she’s had the best response from ryegrass. “It has a very small seed, it’s good at getting going and spends the first part of its growth pattern in setting down some roots.”

However, a challenge with ryegrass is a tendency toward herbicide resistance. That means it will establish well, but weed control can be difficult in wheat seeded after corn.

Seeding date

Verhallen says determining the best time for seeding can be a challenge.

At the COFS demonstration plot, she had a wide variety of options on display. In Eastern Canada, that timing is affected by the closure of the canopy.

In the U.S., growers are being advised

2014

According to OMAF’s Anne Verhallen, growers with corn silage would be ideal candidates for inter-seeding cover crops.

to seed well after tasselling as the crop is starting to dry down.

Coinciding with a fungicide application would be ideal. That could be between mid-July and early August, but in Eastern Canada, that can be the driest time of the growing season.

Also, most cornfields are into full canopy closure come late July.

“I think right now that the earlier seeding is going to work better for us, because whatever you’re seeding, there’s a better chance of getting established before the canopy totally closes in,” says Verhallen. “If you walk in to our cornfields in the middle of July, and take a look at the ground and see how much bright sunlight is actually hitting the ground, it’s very low. How-

ever, this can also add a challenge in terms of herbicides and the impact on the germinating cover crop.”

Verhallen says Quebec growers she’s followed set an earlier target for their timing in seeding of a cover crop — around the five- to six- to seven-leaf stage. In the U.S., some growers have refined their seeding timing from after tasselling to the point at which the crop begins to dry. Verhallen says there are a lot of details to be sorted out, but the practice is gaining attention.

“To me, the real target is the guys who are growing silage corn, where the other opportunity for silage corn is to take silage off, do a manure application and then put in a cover crop.” n Forage & Grassland Guide

11

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Balancing the interests of cattle and birds Selective grazing to leave different vegetation height is the best for protecting nesting birds

By Peg Strankman, Barbwire Consulting

F

orage and grasslands support a strong livestock industry in Canada, but they also provide ecological services — erosion and watershed management, nitrogen fixation, pollinator habitat, biodiversity, carbon sequestration, oxygen production and of course cultural and esthetic values. These are valuable services, difficult or impossible to accurately value economically or to replace ecologically.

One of those values is grassland birds, whose numbers have been declining. This has spurred researchers to investigate how stocking rates, grazing timing and livestock distribution may be affecting them.

In many areas the traditional season-long grazing has given way to a rotational system, which is believed to be more productive. It is based on the principle that productivity of native grasses will be improved by livestock nipping off the grass plant just after the three-leaf stage and before it begins to reproduce. The plants are then rested, which encourages more vegetative growth.

However, changes to litter depth or vegetation height and density may not be what grassland songbirds like for foraging and nesting. A 2010 thesis

by Cristina Lynn Ranellucci evaluated the effects of rotational grazing and

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Forage & Grassland Guide

continuous season-long grazing on grassland bird populations in southwestern Manitoba. It found grazing regimes at moderate and high grazing pressures seem to be more beneficial for grassland birds than lighter grazing intensities. Non-grazed land idle land (shrub encroachment) was the least preferred.

Season-long grazing benefited some grassland birds such as bobolinks and Baird’s sparrow and showed higher species richness and diversity.

That may be because selective cattle grazing produces a mosaic of height, density and litter in the grass stand suitable for a wider variety of species.

Cattle and bird nests

Writing in Conservation Biology, Barbara I. Bleho looked at the effects of cattle on bird nests. Generally it’s the possible indirect effect of cattle grazing thought to impact grassland birds, for example in the case of a severely overgrazed area where the structure of the grassland is severely altered.

But Bleho and her colleagues were interested in the direct effects of trampling and other disturbances on nest survival.

While they did find that nest destruction was positively correlated with grazing pressure (i.e., stocking rate or grazing intensity), overall rates

of destruction of grassland bird nests by cattle are low.

The cattle producer community is beginning to utilize tools such as Rangeland Health Assessment Guides which ask questions about variables like plant community structure, integrity and ecological status.

Having the right information and tools are critical for producers to ensure healthy grasslands support sustainable agriculture production, rural livelihoods and functioning ecosystems.

Healthy grasslands also support native pollinator populations. Some may coexist with white or purple prairie clover assisting in nitrogen fixation. Others may ensure milkweed sets seed to reproduce for the next generation of monarch butterflies.

Other pollinators make the flight to canola fields, increasing yield by up to 30 per cent.

Managing the effects of agricultural production on water, air, soil quality, ecosystems and biodiversity, maintaining rural livelihoods and increasing food production is a challenge.

Canadian agriculture is being asked to show consumers we share their values of an integrated conservation agriculture landscape where the provision of ecological services is an explicit objective of agriculture and rural development. n

2014

Web tool to make forage seed selection a snap Useful to producers as well as to contractors revegetating oil and gas sites

BY TAMARA LEIGH

F

orage producers in the B.C. Peace Region will have a new tool available to help them select the best forage mix for their growing region.

The project will make the B.C. Rangeland Seeding Manual available online along with the added functionality of being able to share the latest information and research on forage varieties.

“The manual was a big effort a couple of years ago and a resource providing information on over 50 species of forage and native plants, and the different considerations for what species to grow in certain situations,” says Sandra Burton, one of the authors of the original manual who is working with the Peace River Forage Association (PRFA) to bring the web tool to life.

Recognizing that print publications quickly find themselves out of date and on the shelf, Burton and co-author, Allen Dodd, pushed to see if someone would pick the manual up and make it an interactive web tool. The Peace River Forage Association recognized the opportunity and took up the challenge to do a regionally based pilot.

“We want to eventually put it on an app or website so if you’re a contractor sitting on a lease or a producer on your tractor, you can look at the conditions and what you are trying to do and the tool will suggest what species are best to plant,” says Bill Wilson of the Peace River Forage Association. “It’s a tool for producers, workers in the oil and gas sector, or anyone with an interest in revegetation of rangeland.”

The key, says Burton, is creating an interactive tool that is functional and responsive to the needs of the users.

To that end, the team is working with a stakeholder group including forage

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The tool will be used to select the best species and management practices for areas disturbed by oil and gas activity.

producers, oil and gas industry contractors, seed suppliers, and staff from the B.C. Ministry of Agriculture, B.C. Ministry of Forests, Lands and Natural Resource Operations.

The tool includes features that allow growers to determine what forage varieties will best suit their geographic location and agronomic needs, perform seed mix calculations, and link people making the seed decisions with the seed sources.

“The web platform also makes it very easy to start adding in new information,” says Burton. “Research never stands still, and this tool allows the PRFA to take what it is learning and update it really quickly.”

Technical development is being led

by Charles Burnett, web developer with GeoMemes, with funding from Enerplus, Murphy Oil, Shell, Peace Region Forage Seed Association, Peace River Regional District, and the Peace River Agriculture Development Fund. The tool will be available to stakeholders in mid-February, and to the public by the end of July 2014.

“The soil conditions on these sites are terrible because a lot of it is subsoil,” says Wilson, who leads PRFA’s forage variety research project. “We want to find species or fertilizer conditions that will help something grow there, and grow quickly to keep invasive species or weeds from getting established, and to prevent erosion.”

The association has also been conducting research on seeding techniques, fertility, timing of seeding and other factors that influence successful reseeding, particularly on the berms that surround well sites and compressor stations.

The information generated by these projects has resulted in a series of soil and revegetation workshops with the University of Northern British Columbia. The courses are available to University of B.C. students, forage producers, agrologists and contractors and employees in the oil and gas sector. ■

Oil and gas revegetation

The online forage seed selection tool is just one example of how the Peace River Forage Association is working proactively with farmers and the energy sector to address shared issues and make information available to improve practices.

To date the oil and gas footprint in the Peace River Agricultural Land Reserve is about 35,500 acres with pipelines, roadways, and well sites.

Any investment in research and expertise to help revegetate these sites pays off for all of the users of the land.

The B.C. Rangeland Seeding Manual was to be available online in February.

FORAGE & GRASSLAND GUIDE

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With good management, alfalfa grazing is a money-maker Cattle grazing uncut alfalfa can gain weight at rates comparable to the feedlot,

but many producers avoid it because of the risk of bloat

W

hen it comes to bloat prevention for cattle on pasture, timing is everything.

Grazing alfalfa in the vegetative state produces gains comparable to those achieved in a feedlot, but many producers are fearful of going that route, said Tim McAllister, a researcher in ruminant nutrition and microbiology.

“Bloat is still an impediment to the greater use of alfalfa and tame pasture as a method of increasing the productivity of the cow-calf sector,” said McAllister, who works at Agriculture and Agri-Food Canada’s Lethbridge Research Centre.

But the bigger risk is to the bottom line, he said.

“When you look at the extra gain and profitability that you can get from alfalfa, and you offset that against the death loss you may incur with bloat, in most instances you’ll still come out ahead.”

Although there are many factors at play in causing bloat, grazing cattle on alfalfa doesn’t have to be a gamble, McAllister said.

There are many ways to reduce or even eliminate bloat risk, and the greatest mistake a producer can make is simply “letting your guard down,” he said.

“If you want that additional productivity with alfalfa, you have to put in more management in terms of monitoring cattle, using rotational grazing, and keeping your risk at the minimum. You can never become complacent.”

McAllister recommends grazing alfalfa at the flowering stage rather than vegetative, as the flowering plant is digested more slowly and is less likely to contribute to rapid gas production. Allowing swathed alfalfa to wilt for 48 hours before grazing can also minimize bloat risk, but comes with a cost, McAllister said.

“The greatest nutrient value is in the forage while sitting out in the pasture,” he said. “Once you cut it, the plant continues to respire and the nutrient value declines.”

Weather can often play a part in bloat risk as well, McAllister said. In bad weather, cattle can spend long periMountainview, a new sainfoin variety, reduces bloat by 95 to 98 per cent in mixed alfalfa stands.

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Forage & Grassland Guide

By rosie templeton

ods of time huddled together without eating. When the weather turns better, they are likely to eat too much and be at a much higher risk of bloat.

For that reason, it’s also not a good idea to let cattle out to graze when they are hungry.

A common misconception is that frost “burns off” an alfalfa plant and removes the risk of bloat, McAllister said.

“The risk of bloat actually goes up after the first frost,” he said, “possibly because of the rupture in the plant cell walls releasing more soluble protein.”

The use of bloat-preventing inputs introduced in the last decade can significantly cut risk as well. The alfalfa variety AC Grazeland, developed to have a slower digestion speed, reduces bloat by about 80 per cent, McAllister said.

Non-ionic surfactants like Alfasure can reduce bloat risk to zero when properly administered to cattle grazing vegetative alfalfa.

“Alfasure is one of the only methods that can bring the bloat risk to zero and still maintain maximum animal performance,” he said.

An alfalfa-sainfoin blend being developed at the Lethbridge Research Centre will offer the same 100 per cent bloat reduction without the use of extra inputs.

“Sainfoin is palatable, high in protein, and is very effective at preventing bloat,” said Surya Acharya, a forage breeder at the centre. “In the past, producers have been discouraged from growing it because of the cost.”

The new sainfoin variety can be seeded at a rate 15 pounds per acre alongside alfalfa at five pounds per acre, he said.

“Not only can this variety survive when grown with alfalfa, it is able to grow back for multiple cuts,” Acharya said.

The variety, dubbed Mountainview, in mixed alfalfa stands reduces bloat by 95 to 98 per cent, even in high-risk scenarios, Acharya said. Mountainview will be available for purchase for 2016 planting.

“In terms of the research going on around the world related to this, it’s probably some of the most advanced,” McAllister said. “And it’s one that could be sustainable at minimum cost since you don’t need to administer an additive.” n

2014

Silage the latest candidate for yield monitors The technology offers the prospect of tracking not only yield, but moisture and nutrient quality

By ralph pearce, country guide

Y

ield monitors are now common on grain and oilseed farms, though you’re not likely to find one on a dairy operation. But yield monitor technology for silage corn is now a reality, and it shows promise for adaptation to forages as well.

The concept of precision farming was initially adopted with great enthusiasm by some farmers, who used yield monitors and yield mapping to generate many pages of coloured maps and overlays. But that was initially followed by frustration because they were only able to use a fraction of the data the technology could provide.

That’s changed, and what’s been learned with grains and oilseeds may allow the evolution of yield monitors for corn and forage silage to come more quickly.

Kevin Putnam, a dairy specialist with DuPont-Pioneer in Lansing, New York, says developing a yield monitor for silage came with different parameters. Silage and forage quality have greater specificity than merely tracking yield.

For now, yield and moisture levels are still the two most important components in silage corn that can be measured with this configuration, says Putnam. But the technology can also provide higher-quality parameters, including acid detergent fibre (ADF), neutral detergent fibre (NDF), starch and sugar levels, as well as crude protein. John Deere is one manufacturer that has incorporated its HarvestLab and Constituents Sensor technology into its new choppers, while other manufacturers have separate systems that can be added.

In most cases, the yield monitor is a separate unit from

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Forage & Grassland Guide

conventional systems, which only makes sense, given the quality parameters in silage. It can even read the moisture or starch levels, and then adjust for cut length, which makes this technology an ideal piece of equipment for growers with corn silage, and also opens the door for use in forage crops.

More precision

The short-term hurdle is the precision in measuring those values.

“Right now the constituents aren’t as accurate as we might want them to be,” says Putnam, noting that it’s only a matter of time before those shortfalls are fine tuned.

“What we’d like to do in the next year is validate this system, so that we can say, ‘Here’s a plot, and Hybrid 1 was this level, and Hybrid 2 was this level for both yield and starch.’”

For the time being, laboratory analysis is still needed to confirm or accurately define those readings, but it will certainly provide an in-field thumbnail sketch of a variety of quality parameters.

“And instead of taking one or two samples to the lab from a 300- or 500-foot strip, now I have multiple time points along that whole strip that I can average,” adds Putnam.

The real value isn’t for potential plot evaluation, though; it’s for farmers having the ability to compare hybrids across the whole farm, and see which hybrids perform better under certain soil or field conditions. Also, to help find areas where different management strategies can be practised.

There are even inoculant application units that tie into the yield monitor so the correct rates of inoculants are applied. Last, but perhaps most important, it’s making sure that forages are the correct moisture for cutting, which also includes testing before harvest. Both can lead to a better quality by ensuring crop maturity and promoting good

2014

fermentation. With this system, farmers can make better decisions.

Steady adoption

In his area of New York state, Putnam is seeing a slow but steady adoption of the technology. That trend is being fuelled, not only by the functionality of the information it provides, but also through the attrition of one piece of equipment. As farmers upgrade from one chopper, they’re more likely to move up to these new systems that come with a yield monitor.

“The yield monitors started coming out around 2008-09 when the price of milk in the U.S. was poor,” says Putnam.

“In 2013, the farmers had a good year, and this year, it’s looking as though it has the potential to be even better, and if you look at a lot of the new choppers that came out this year, a lot of those have yield monitors on them.”

It’s another example of precision agriculture and the depths of information that can be gleaned from a field, and then analyzed both in short-term and long-term perspectives. A farmer can even take the Constituents Sensor system back to the office and use it to run sampling analysis year round for silage and feed quality monitoring.

View from Canada

In Canada, the uptake has been even slower than that of the U.S., says Dave Petheram, integrated solutions manager at Premier Equipment in Elmira, Ont. The University of Guelph has purchased one of the Deere-built chopperheaders, but Petheram agrees there may be some level of “sticker shock” associated with the units.

He concedes that the head units are all the same, but the HarvestLab sensor which is bolted to the chopper, is what he calls “a pricey option.” Still, he’s optimistic about the eventual adoption of the technology.

“The challenge with it is that the guys who are buying these are usually custom operators, so it’s going to take some time to push the value through, and get nutritionists on board as to how powerful some of this data can be,” says Petheram. “There are studies out there that have shown that it does result in better feed quality, but you often have to see that work in your area or in your field before adoption starts to take place on a wider range.”

Qualitative monitoring

Despite the use of terms that are well known for corn, soybean and wheat producers, these yield monitors are considerably different, adds Petheram. Yes, they monitor yield, chart populations or high-yielding areas of a field. But the big difference with corn silage — and ultimately forages — is that it’s a qualitative monitoring.

“I think if we looked at the adoption rate of yield monitors 10 or 15 years ago, it was the same thing,” says Petheram.

“The farmer or the operator of the combine was told that the guys who do custom work are going to pay more money to have this data, yet when they went to the field, they weren’t.

They didn’t know what to do with that information.”

That’s changed, and the experience with yield monitors for grains and oilseeds should shorten the learning curve for applying the technology for corn silage and forages. n

2014

John McGregor is extension co-ordinator for Manitoba’s “Green Gold Program,” which has been helping predict alfalfa harvest for nearly two decades.

Monitoring the best time to harvest alfalfa ‘Green Gold Program’ measures relative feed value and relays results to producers

T

By Duncan Morrison

iming is everything — it’s a well-used cliché, but one that applies when harvesting alfalfa.

John McGregor is the extension co-ordinator for the Manitoba Forage and Grassland Association (MFGA).

Part of his role includes overseeing the “Green Gold Program,” which has been helping predict alfalfa harvest for nearly two decades.

“Alfalfa producers, dairy, beef and sheep producers have used the program to help predict when their alfalfa is at the optimum stage for their specific use,” says McGregor.

“We take samples from the fields Mondays and Thursdays and get them into the lab that same day.”

On paper, the rules for harvesting high-quality hay are straightforward — cut it at the perfect time, dry it down as fast as possible, put it up at the optimum moisture level and store it out of the elements. Simple, right? Not so fast.

“Deciding on the best time to cut hay can factor on weather, species of plant, intended use and maturity of the stand,” says McGregor. “We specifically measure the relative feed value (RFV) so that producers can cut their fields at the highest value and limit the loss of RFV over the drying process. The Green Gold Program is a management tool for their haying operations.”

McGregor says about 500 producers and industry people receive the information from the program. He says the program helps especially in times of unusual environmental conditions such as cool weather, as well as extreme heat in recent years where alfalfa reached optimum quality well before the traditional early-bloom stage saving producers time and money.

The Green Gold Program communicates regional results on the MFGA website and media outlets. Results are also emailed to producers twice a week. The Dairy Farmers of Manitoba also sends the information to members. n

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Putting Prairie forages on America’s stage Long days and cool nights make for high quality which is demand in the U.S. and offshore

By Duncan MorrisoN

A

t first glance, drought and dairy may not link together.

Unless, that is, you are a Prairie forage producer with intentions on selling part of your crop to American producers. Then drought and dairy are intertwined as two main factors in the success of your pursuits.

“We have a good relationship with dairy producers in Wisconsin that has been fortified by our annual visit to the World Dairy Expo held there each year,” says Chris Kletke, a Manitoba forage producer who chairs the Manitoba Forage Marketers Group (MFM). “But it’s a unique business that is somewhat difficult to establish customer loyalty as everything is on a need-to-have priority demand basis.”

Kletke points to 2012 as an example. Manitoba-grown hay that normally would have been earmarked for dairy farms in Wisconsin was being shipped to beef operations in West Texas as a stop-gap measure to help get those producers through drought conditions. Beef producers in West Texas needed the product and stepped up financially to ensure they received it. It was simply the basic supply-and-demand principle at work.

Last February, Kletke was joined by fellow forage producers and marketers Darren Chapman and Jake

Heppner on a fact-finding 10-day mission that took the trio through South Dakota, Nebraska, Kansas and Texas to visit feedlots and beef producers to help build a network for future marketing of Manitoba forages.

“It’s always nice to build a network,” says Chapman, who farms near Virden, Man. “They were all in time of need and reaching abroad with interest in our competitive prices. That said, the demand shuts off overnight when the green grass starts growing and showing up in their local regions.”

Prairie reputation

According to the Canadian Forage and Grassland Association website, Canada is the premier supplier of hay, straw and forage products domestically and internationally. Canada exports approximately 600,000 tonnes of forage product annually valued at $150 million, primarily to United States and Asia, with emerging markets in the Middle East and Mexico.

The Prairie provinces of Alberta, Saskatchewan and Manitoba are all active on the export front.

“Prairie hay has a good reputation,” says Glenn Friesen of Manitoba Agriculture, Food and Rural Development (MAFRD). “Our long days and cool nights are conducive to produc-

Manitoba hay went as far as Texas during the drought of 2012.

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Forage & Grassland Guide

ing forages that increase animal performance.”

The fact-finding mission also brought home several key factors for future marketing success. Included in this report was highlighting transportation as the largest factor in any forage-marketing plan.

“You need to know your product, stand composition, conditions prior to harvest, stored product condition and storage type,” says Chapman.

“But you also have to understand the needs of the buyer before making the deal. Often, this includes transportation. You need to know how you are going to get the product to market or the buyer before you make the sale.”

In this regard, Manitoba producers have explored advantages to support their marketing efforts.

“Manitoba forage producers use packaging that is more transport friendly,” says Chapman. “Other places sell round bales, which are cheaper but come with transportation issues. Manitoba primarily ships medium square bales. Our most common sizes are 3x3x8 bales, and 3x4x8 bales are becoming more popular, especially in straw. We do ship round bales periodically when supply in the United States is extremely short.”

While the proximity to the United States market has developed some strong bonds between Prairie forage producers and their stateside feedlot, dairy and beef networks, there are two international opportunities that the MFM are watching closely.

One is CentrePort, an air/road/ rail transportation hub being established just outside Winnipeg.

“We are very interested in CentrePort and how that may influence shipping opportunities via Churchill and we are equally interested in Mexico and the accelerated growth of its dairy operations in the world market,” says Chapman. n

2014

Export opportunities for forage producers are increasing China’s bid to double milk production will mean a huge increase in forage imports,

By Alexis Kienlen and opportunities abound in the Middle East

I

t’s a good time for forage producers to get into exporting — but there are pitfalls, too, says the chair of the Canadian Forage and Grassland Association’s forage export committee.

“One of the things we’re realizing is that good data is hard to find, especially when you are talking about exports to the U.S.,” said Marc Lavoie, who operates Macay Entreprises in the Peace River area.

“There are a lot of people that are sending product and it’s not being documented properly, so we don’t have very good numbers on what goes to the U.S.” More than 95 per cent of Canadian hay is used domestically, with most of the rest going to the U.S., the biggest customer, Japan, South Korea and Taiwan, Lavoie told attendees at a meeting of the Alberta Forage Industry Network last March But China’s imports of Canadian forage are increasing, and the United Arab Emirates and Saudi Arabia are developing markets in the Middle East, he said. Niche European markets, like the racehorse industry, are also looking to import quality Canadian hay.

The horse industry wants high-end timothy, while lower-quality mixed hays are used by feed stores in the U.S. The dairy industry in South Korea and Japan want high-fibre, rather than high-protein, hays, while the Middle East buys alfalfa or mixed hays with high protein for their dairy herds. Alfalfa, mixed hay, timothy hay and straw are attractive forages for the Japanese beef market, while Middle Easterners want pure alfalfa hays for camels, goats and sheep. Many global markets are also looking for small quantities of hay for rabbits raised as pets or for food.

It’s also important to keep an eye on demographics, said Lavoie, noting the population of Japan peaked last year and is now edging downward.

“We know that eventually their usage will decline, therefore their forage imports will decline over the next 10 to 15 years,” he said.

Eight years ago, half of Japan’s imports of forage came from Canada, but last year that had shrunk to six or seven per cent because of hay shortages here, the rising Canadian dollar and increased freight costs, as well as increased competition.

However, Canada’s ample supplies of fresh water is an advantage, said Lavoie.

“Our freight costs are still higher than the U.S. but we’re still able to be competitive in certain areas. In some countries, we’re not,” Lavoie said.

Shipping to the Middle East is difficult, especially for producers from Western Canada, and access to containers is also an issue for Saskatchewan and Manitoba growers. Those wanting to export to that region also have to understand what quality is wanted and that Middle East importers want large bales, he said.

“These kinds of things are really important, if you’re looking at doing some export,” Lavoie said.

The Canadian Forage and Grassland Association has undertaken several fact-finding missions. On a trip to China last year, it learned about the country’s plan to double milk production.

“You don’t double your milk production without using double the forage,” noted Lavoie. “China is not able to grow double the forage, so where does it come from?”

On a trip to the Middle East three years ago, it looked at how the United Arab Emirates will adapt to a decision to stop using water to irrigate their forages. UAE forage imports hit 1.5 million tonnes last year and are expected to reach 1.8 million tonnes this year.

“Saudi Arabia has seven times the population of the United Arab Emirates,” said Lavoie. “If it is looking at importing all its forages, that leaves you with a big number that needs to be filled.”

India is also starting to import more forages.

“The poorer countries are starting to eat more like the richer countries, which means they are eating more milk and meat, which means you need more forages,” he said. n

“Our freight costs are still higher than the U.S. but we’re still able to be competitive in certain areas. In some countries, we’re not.” marc lavoie

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2014

Forage & Grassland Guide

21

Simple separation doubles effectiveness of manure fertilization System addresses the N:P imbalance by separating manure into two fractions

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he alternative to buying phosphorus fertilizer may be in your own backyard. Researchers at the Pacific AgriFoods Research Centre (PARC) in Agassiz, B.C. have developed a low-tech system for separating manure into two products better suited to the needs of common dairy forage crops. The result could dramatically reduce the need for phosphorus fertilizer, particularly for corn.

“We focused on the dairy industry, where they bring in a lot of feed and fertilizer in order to maximize the production of the farm,” says Shabtai Bittman, one of the lead researchers on the project for Agriculture and Agri-Food Canada.

“They buy nitrogen (N) for their grass and phosphorus (P) for their corn in a context where they have as much and maybe more than what they need from the animal waste.”

Bittman says the crux of the problem is that manure is not used as efficiently as it could be because the nutrient balance in manure does not meet the needs of the crops.

While crops need an N:P ration of 8:1 or 10:1, manure is closer to 5:1. Add to that the fact that nitrogen is easily lost during conventional spreading of manure in the form of ammonia (NH3), and that phosphorus doesn’t always do what you want it to do, and it makes sense for farmers to bring in inputs to optimize crop development.

Bittman, along with his research partner Derek Hunt and their team, have found that separating manure into different fractions corrects some of its natural imbalances, and by changing the way that manure is applied in the fields, they are getting results on both hay and corn that equal the production improvements of commercial fertilizers.

“Instead of using manure as one product ill suited to grass or corn, the dual-manure-stream concept separates manure into two products, a liquid fraction that is higher in N targeted to the grass, and a solid fraction that is higher in P for the corn,” says Bittman.

Doing nothing

“Manure separation is quite well known, but there have been problems because if you wanted to separate products, you had to get quite technical,” he says. “There is a simple way to separate manure to some extent by doing nothing — that’s the appealing thing about this system.”

The researchers have found that the natural separation that happens when manure tanks are allowed to settle, or more quickly in a double-lagoon system, is sufficient to correct the imbalance.

When manure sits in the tank, solid particles sink to the bottom and form a sludge or slurry, and a thinner product sits on top. The thin material, called supernatant, is watery, thin, and has a high level of soluble N. Once spread on the grass, the liquid soaks quickly into the soil, reducing the opportunity for N loss to ammonia.

“We have tested and found significant improvements in

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Forage & Grassland Guide

By Tamara Leigh

N efficiency using this technique,” says Bittman. “It’s about halfway between using commercial fertilizer and spreading whole manure.”

The liquid can be applied using conventional broadcast techniques, or with improved technology like surface banding — the application of liquid fertilizer in bands or strips on the soil’s surface.

The sludge that is left behind after the supernatant is removed has a lower N:P ratio, and becomes a possible source of P for corn.

“We know that the farmers are applying all and more of the phosphorus a crop will use as fertilizer, plus manure, and the soil is already testing high,” says Bittman. “Everyone is growing corn using pre-emergent fertilizer. From the standpoint of farmers trying to optimize their crops, it’s the right thing to do, but not from the standpoint of the environment.”

Placement

The slurry has high enough levels of phosphorus to replace commercial fertilizers, but the challenge is placement. It is critical that the seeds are planted within five to 10 centimetres of the P, so it is available when they need it. The trick, they found, was reversing the order of planting and fertilization.

“The only way to do it, is to do the manure first and then plant the seed, and plant precisely where manure was banded,” Bittman explains. “Phosphorus in manure is equally available as P in fertilizer. We have tested it, and have very good results that show that there is no loss in production and don’t have to buy fertilizer.”

The slurry is applied at the same rate as fertilizer using an injection system with the injectors spaced at 30 inches to match the spacing of the corn rows. The manure is allowed to sit for a few days after application and then plant as close as possible, or even over top of the injection furrow.

“It’s something that people can more or less do with equipment they have, with a bit of adjustment,” says Bittman. “From our standpoint, efficiency is the key. It’s about keeping the system going with the minimum amount of inputs. If you can do that you’ll be a good step on your way to nutrient sustainability.”

To date, this research has been done on small plots, but this summer Dennis Haak will be leading farm-scale demonstrations in the Fraser Valley, as well as a study of on-farm manure facilities.

“There is a lot of variety in how farms manage their manure storage depending on how they are set up,” says Haak. “We have 15 farms that we are sampling and tracking to find out what kind of management systems are more conducive to managing the manure in these separate fractions. If farmers can manage these types of different manure fractions without spending money it will be easier for them to adopt.” n

2014

Changing Weather is Changing Farming.

Better Get Ready.

The growing season of 2013 was one for the record books. We had it all: too wet, too dry, too cold, too hot.

Although variability in the weather cannot be changed, we can learn to better manage under these conditions.

Conservation of water and soil is vital to your success in all kinds of weather.

The 6th World Congress on Conservation Agriculture in Winnipeg, Manitoba, will present new ideas on all these topics and more. Be there June 22-25, 2014, for innovative solutions for challenges facing today’s agriculture.

Weatherproofing agriculture is one of three major themes for the conference, along with Growing More with Less and Sharing Innovation Success Stories.

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Winnipeg Convention Centre Winnipeg, Manitoba •

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WCCa6.org Register today at www.wcca6.org.

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learn more about how peter farms smart at nhsmart.com/peterJ Š2014 CNH America LLC. New Holland is a registered trademark of CNH America LLC. NHM01148906

1108906_NHM01148906_8-125x10-75_4C_ForGrassGrwr_r0.indd 1

1/30/14 4:17 PM

 prime cuts

By Steve Kay

from Reputation Breeders

The COOL nightmare

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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

HIGH QUALITY BULLS

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MARCH 22 A North American view of the meat industry. Steve Kay is publisher and editor of Cattle Buyers Weekly.

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MARCH 27 ELDER CHAROLAIS BULL SALE, at the farm, Coronach, SK

MARCH 29 GILLILAND BROS. CHAROLAIS BULL SALE, at the farm, Carievale, SK

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APRIL 7 WILGENBUSCH CHAROLAIS NORTH OF THE 49TH BULL SALE, at the farm, Halbrite, SK

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www.bylivestock.com C a t t l e m e n · M a r c h 2 0 1 4 31

 breeding

By Debbie Furber

Genomics hits the ground

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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

www.canadiancattlemen.ca

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

www.canadiancattlemen.ca

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?

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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

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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

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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.

44

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

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

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

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

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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

Date: Sat. April 12, 2014 Place: Eionmor Stock Farm (The Morison’s) Time: Viewing of the Cattle at 10:00a.m.

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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

JASRed Angus

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livestock. “This means that the U.S. position is, as long as consumer information is a legitimate objective, they can discriminate against their trading partners.”

“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

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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.

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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

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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

Balers Bale Processors Disc Mowers Mower Conditioners Rakes Tedders Trailed Mowers Vermeer, the Vermeer logo and Equipped to Do More are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. Š 2014 Vermeer Corporation. All Rights Reserved.

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