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APRIL 14, 2014
Province’s decimated cow herd may be on the mend BSE, low beef prices, and then high feed costs have decimated Alberta’s cow herd, but a turnaround is coming into view BY JENNIFER BLAIR AF STAFF
C
anadian cattle producers are receiving strong price signals to begin expanding their herds — but will that be enough to reverse the decline in the national herd? Canfax’s research manager Brenna Grant thinks so, but not until next year. “We are anticipating these prices that we’re currently seeing to stabilize, but the price signal for expansion will be there very strong this fall,” she said. “We’re expecting expansion to really kick into gear in 2015.” The current focus for most producers is on rebuilding “equity that was lost over the last decade,” said Grant. “Producers have been really cautious over the last five years,” she said. “There’s been a lot of better news, but it’s not necessarily good news.” Grant saw some heifer retention in 2012 when calf prices were around $1.80 per pound. Prices are now north of $2 and “that’s a really strong signal to retain some heifers.” “If we’re at the point where these high prices are here to
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stay, you want to be the one retaining heifers this year,” she said. That’s what Clay Williams plans to do. “Last year, we ran 20 head, and this year, we’re ramping up to 80 head,” said the Hannaarea producer, who farms with his parents and his wife Jesse. The young couple has been buying heifers in the spring and selling them as bred heifers since starting their operation two years ago. “We’re doing that again this year, but we’re planning to keep back enough for one or two bulls.” As a new farmer, Williams has found strong cattle prices to be both a blessing and a curse. “It’s a lot tougher to grow mostly because the price to either keep (bred heifers) back or buy them is high, and the price of land is high,” he said. “(But) you’re going to get good money for your calves in the fall.” He’s optimistic, though. “As long as the markets hold and our profit margins are good, it’s going to make it not too difficult to get into the business.”
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Clay and Jesse Williams will be keeping back some bred heifers this year so they can begin to expand their herd. PHOTO: COURTESY CLAY WILLIAMS
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