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GRADING CHANGES IN THE WIND • TURN EXPORT DEPENDENCY INTO OPPORTUNITIES www.canadiancattlemen.ca

March 2012 $3.00

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Volume 75, No. 4

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

FEATURES Grading changes in the wind............................................8 Don’t take beef demand for granted............................ 10 Does your business appreciate?....................................... 14 Small and manageable. .................................................. 16 Inforce 3 — a brand new intranasal vaccine............... 30 Taking care of customers and their cattle................. 26

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Turning export dependency into opportunities........... 38

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Cattle feeders look to the future. .............................. 44

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Verified beef production................................................ 51

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Departments

COMMENT............................................... 4 NEWSMAKERS......................................... 6 NUTRITION............................................ 22 VET ADVICE.......................................... 24 HOLISTIC RANCHING.............................. 32 RESEARCH............................................ 36 STRAIGHT FROM THE HIP...................... 42 CCA REPORTS...................................... 48 PRIME CUTS......................................... 50 NEWS ROUNDUP................................... 52 PURELY PUREBRED............................... 60 THE MARKETS...................................... 63 MARKET TALK....................................... 65 SALES & EVENTS.................................. 66

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The editors and journalists who write, contribute and provide opinions to Canadian Cattlemen and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists, C anadian C attlemen and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as C anadian C attlemen 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.

Cattlemen / march 2012 3

c o m m e n t

by Gren Winslow

A numerical checkup

Statistics can tell you where you’ve been, and maybe where you’re going

t’s official. The stats are in and beef numbers are up. What? Hold on a minute. Better check those numbers again. Yep. Stats Canada bean counters found a couple more head of cattle on farms on January 1 compared to last year. Actually, it was more than a couple. Total cattle and calves were up 0.5 per cent, about 100,000 head give or take, across the country. The engine is still slipping though, with beef cow numbers dropping another one per cent to 4.22 million at the start of this year. But this is minimal compared to the sharp five and six per cent drops in the past couple of years, so the carnage is slowing down. What makes it look more like we might just be turning a corner, however, is the number of heifers that are being held back by producers this spring. Nationwide there are 4.3 per cent more heifers being pulled out of the feeding pens for breeding. That’s a promising number, especially since it comes a year after the 2.9 per cent increase in heifer retention in 2011. Still, you have to watch these percentages. They can skew your idea of what’s really going on if you aren’t careful. For example, a one per cent drop in cow numbers may not sound like much but that works out to about 45,000 more cows that took a final trip to town over the last year. Some of those girls will be replaced by newer, younger models, but not all. We may have 4.3 per cent more heifers being groomed for breeding pastures this summer but that only amounts to 23,000 more when you get around to counting them. Not enough to replace the cows we lost last year. The trend is definitely moving in the right direction but we’re still looking at another drop in cow numbers when January 2013 rolls around. The pattern continues across the country more of less in proportion to the size of the industry in each location. In the east we lose 12,000 cows and gain 7,000 heifers; out west 33,000 fewer cows will be replaced by 22,000 more heifers. Only B.C. among to big six provinces has more cows this year than last, only 3,000 head more but they also have 6,000 more heifers being held back. This seems a remarkable shift in a province that has disposed of 46 per cent of its beef cows since 2006, compared to a 23 per cent drop in Alberta next door. Despite these dropping cow numbers the Stats

4 Cattlemen / March 2012

Can surveyors found 1.5 per cent more steers one year and older and 1.6 more calves under a year on farms. So cow numbers are down but it appears productivity is up, another good sign as we look ahead for the industry. At the same time the herd appears to be getting younger. The number of cows born before 1999, the ones at greatest risk of turning up with BSE, are now down to 272, 000. Stats Canada says there are still 95,105 farms reporting cattle and calves across the country. That’s 1.4 per cent fewer than last year and 4.3 per cent fewer than 2010. Of course, this includes everyone who sells an animal so we will have to wait until the census numbers come out to get a clearer picture of the number of commercially sized beef operations that are still in operation. The January 1 inventory numbers aren’t the only ones to come out in February. Canfax also released its annual survey of procurement patterns used by the largest packers in Alberta during 2011. The results are obviously a reflection of the smaller fed cattle supplies and the desire of packers to lock down supplies as a result. Last year Alberta packers bought only 47 per cent of their requirements on the cash market, the lowest level since Canfax started collecting these numbers in 1998. Two years ago the cash accounted for 64 per cent of the trade, then it slipped to approximately 59 per cent last year. Grid and formula pricing is the next largest alternative, accounting for 27 per cent of the Alberta trade. That is up from about 22 per cent in 2010. Forward contracts are another purchasing tool this is increasingly popular among packer buyers. Contracts accounted for some 18 per cent of the trade last year. Canfax says contract purchases have increased steadily since 2006 when they covered only two per cent of packer deliveries in Alberta. Packer owned cattle were down slightly on the year at seven per cent of the total. U.S. buyers purchased 48 per cent of their Alberta cattle by contract in 2011, versus six per cent in 2006 and 17 per cent by formula pricing. Only 14 per cent of the U.S. bought cattle were done on the cash market or negotiated pricing, compared to 70 per cent as recently as 2006. Sometimes it’s worthwhile to stand back and take a good look at the numbers to see exactly where you stand. www.canadiancattlemen.ca

Hereford

making black better. “Highbred vigor means more money in producer’s pockets” Allan Lively, General Manager of Southern Alberta Livestock Exchange

Plan to attend a Hereford Consignment or Production Sale in your area. For full event listings see The Canadian Hereford Digest or visit www.hereford.ca

Canadian Hereford Association • 5160 Skyline Way NE, Calgary, AB T2E 6V1 1-888-836-7242 • www.hereford.ca Photo of Borman calves courtesy of Martha Ostendorf Mintz.

NEWSMAKERS A cow-calf operator from Castleton in Eastern Ontario, Dan Darling was elected president of the Ontario Cattlemen’s Association at their annual meeting in Toronto last month. Bob Gordanier of Orangeville was elected vice-president and is next in line for the top job. Also elected were directorat-large Tim Fugard of Lampton County and feedlot director Steve Eby of Bruce County.

at the annual meeting of the Ontario Cattlemen’s Association, including the planting of 20,000 trees, the creation of stream crossings to protect stream banks and fish habitat and the introduction of endangered plant species. Dan Darling

Bob Gordanier

Jim Ginn of Clinton is the winner of the Ontario Environmental Stewardship Award sponsored by RBC Royal Bank. Ginn and his family run a purebred Red Angus cow-calf operation. They were cited for several environmental improvements to their farm during the announcement of the award

North Grower cattleman John Newman will be inducted into the Ontario Agriculture Hall of Fame in June. A retired Armed Forces major, Newman is a past director on the Ontario Cattlemen’s Association and the Canadian Cattlemen’s Association. He was regularly pressed into service as a spokesman for the board of directors of the Beef Information Centre when BSE hit in 2003. Brent Chaffee of Strathmore was elected chairman of the Alberta Cattle Feeders’ Association at their recent annual meeting in Lethbridge. Page Stuart was elected vice-chair and Doug Price moved to the past-chair position on the executive. Ryan Kasko of Coaldale replaced Jeff Ball who stepped off the board of directors after

11 years. He joins Chaffee, Martin Zuidhof of Lacombe, Jeff Warrack of Strathmore, Glen Thompson of Iron Springs, and Greg Van Vaerenbergh of Picture Butte who were returned with two-year terms. Remaining directors with one year terms are Price and Stuart, Jason Hagel, Mike Sears, Leighton Kolk, Lyle Miller and John Lawton. Memorial services were held Thursday, Feb. 2 at Tugaske, Sask. for noted livestock auctioneer and market manager Sheldon Nicholson, who died Monday, Jan. 30 at the age of 45. Nicholson was manager of the Yorkton, Sask. marketing centre for Heartland Livestock Sheldon Nicholson Services, He was also a competitive auctioneer, placing in the top 10 in the annual Livestock Markets Association of Canada championships in 2005 and 2007. Originally from Central Butte, Sask., he worked at the Winnipeg market and for Heartland in Brandon before joining the Yorkton centre. We at CATTLEMEN were also saddened to learn of the passing of Meadow Lake, Sask., rancher Cory Wilson Feb. 22 from cancer. Cory and his wife Shauna operated Braeval Livestock Services. In addition to their purebred cattle they had a 500-head feedlot and offered a custom AI service to producers. As recently as last year he and friend Dylan Biggs were in the process of setting up a new AI company.

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6 CATTLEMEN / MARCH 2012

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Pense, Sask., rancher John Willmott and Wood Mountain cattleman Pat Fitzpatrick were inducted into the Canadian Western Agribition Hall of Fame in February for their outstanding service to the Regina show. Willmott is a past president of the CWA and Fitzpatrick (who received the award posthumously) a long-time volunteer. Our congratulations go out to Canadian Cattlemen’s Association president Travis Toews and Alberta Livestock and Meat Agency chairman David Chalack who received inaugural Queen Elizabeth II Diamond Jubilee Medals last month for their support of farmers and cattlemen. The presentation was made by Governor General David Johnston and Prime Minister Stephen Harper at Rideau Hall. C www.canadiancattlemen.ca

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POLICY

GRADING CHANGES IN THE WIND The industry wants to line up yield grades with the U.S.

anada aligned its minimum marbling standards with those of the U.S. grading system in 1996. Discussion is now afoot about the possibility of aligning Canada’s yield grade classes with those south of the border. Bill Jameson, chair of the National Cattle Feeders’ Association, says the initiative to increase the number of yield grades from three to five in Canada’s federally inspected slaughter plants has the full support of his association as well as the Canadian Cattlemen’s Association. “There really are no drawbacks that we can see,” Jameson says. “The problem now is that U.S. packer contracts align with the U.S. system, so even though we don’t have five yields as part of Canada’s grading system, the contracts go by the U.S. system. Aligning Canada’s yield grades with U.S. yield grades would provide more information back to producers.” Modifying the Canadian beef grading system requires amendments to the federal Livestock and Poultry Carcass Grading Regulations of the Canadian Agriculture Products Act. Guy Gravelle, senior media relations officer with the Canadian Food Inspection Agency (CFIA) confirms that beef producers have asked the CFIA to review changing the number of yield grades from three to five. The CFIA has initiated the first steps in the regulatory process, which includes defining the issue and determining the impact of the change. This is in the very early stages of discussion and is only a proposal at this time, he says. Once the suggested amendments are approved by the Treasury Board the CFIA completes the regulatory impact analysis statement and the proposal is published in CANADA GAZETTE I for public comment. Canadian Beef Grading Agency manager Cindy Delaloye, says the industry-led board of directors has not formally discussed the merits of changing Canada’s yield grades. Personally, she agrees Canada’s meat yields need to be spread over more than three classes to give producers a greater opportunity to identify, select and produce higher-yielding cattle. The caveat is 8 CATTLEMEN / MARCH 2012

that improved yield must not come at the expense of reduced feed efficiency. “Canadian cattle are currently lumped into three yield classes that don’t really provide distinctive indications of yield value,” she says. “The majority fall into Canada Yield 1 (CDA Y1) with the remainder tapering to CDA Y2 and CDA Y3.” Yield grade and quality grade are combined to establish payment to producers who sell on the rail or on a grid. The Canadian yield grade to establish value is based on the boneless, fatless “lean meat yield” — the product consumers want to eat from the beef carcass, Delaloye explains. CDA Y1 carcasses have an estimated lean meat yield of at least 59 per cent of the beef carcass weight. CDA Y2 is 54 to 58 per cent; and CDA Y3 covers carcasses with estimated lean meat yields of 53 per cent and lower. A beef carcass as defined in the regulations is the carcass of a slaughtered bovine animal after removal of the head, hide, lower legs, tail, spinal cord, parts of the diaphragm, internal organs (respiratory, digestive, reproductive, urinary system, thoracic, abdominal), and internal fat surrounding the kidney, heart, pelvic and scrotal or udder area.

Value parity Going with five yield grades in Canada would give producers a better indication of an animal’s performance and make it easier for those who sell cattle on both sides of the border to compare performance and payment. In itself, though, a five yield grading scale won’t result in value parity with the U.S. “One would think that a 1,100pound live animal marketed north or south of the 49th parallel would provide the same returns. Not so,” Delaloye says. “Unfortunately, there are a lot of variables at play that influence the final dollar outcome.” First is the method of determining carcass weight. Americans leave in the kidney, pelvic and heart fat, and an internal muscle known as the hanging tender, or pillar of the diaphragm. As a result live to dressed cattle yields average about 2.5 per cent higher in the U.S. The 1,100-pound animal, for

example, could potentially dress out at 62.5 per cent of live weight in the U.S. and only 60 per cent in Canada, which translates to a difference of 17.5 pounds on carcass weight. Secondly, U.S. yield is based on “cut yield,” which ignores all of the carcass except the closely trimmed, boneless retail cuts from the round, loin, rib and chuck. So the five yield classes are: Y1, more than 52.3 per cent of the beef carcass weight; Y2, 52.3-50.0 per cent; Y3, 50.0-47.7 per cent; Y4, 47.7-45.4 per cent; and Y5, less than 45.4 per cent. It doesn’t end there. The yield prediction equation that estimates lean meat yield in Canada is different from the one used in the U.S. The prediction equations were derived through costly cutout studies, Delaloye explains. The U.S. equation is based on a 1950s cutout study that included a significant dairy population. The Canadian yield prediction equation was updated in 1992 based on a cutout study of the Canadian beef population. The yield prediction equation is a formula built into the grade ruler and grading camera. Measurements taken at the exposed ribeye when the beef carcass is ribbed between the 12th and 13th rib and the point of minimal fat covering on the outside of the rib are plugged into the equation to determine lean meat yield as a percentage of the hot carcass weight, which translates into yield grade. U.S. and Canadian graders use the same technology and criteria for measuring the ribeye and fat. However, the Canadian equation for lean meat yield only requires input for rib-eye length, width and fat cover, while the U.S. equation incorporates hot carcass weight, rib-eye area, fat cover and subtracts a percentage of the pelvic, heart and kidney fat. The bottom line is the same carcass has different values in the U.S. and Canada, not to mention that all of the differences make it impossible to compare cattle performance north and south of the border based on yield, says Delaloye. She says Canadian producers hold out little hope that Canadian packers would ever agree to a regulatory www.canadiancattlemen.ca

change that includes additional weight (kidney, pelvic and heart fat) so that it would align with the U.S. system. They also realize that, despite Canada’s updated prediction equation, the quickest way to achieve comparability with the U.S. would be to adopt the U.S. prediction equation. However, adopting the U.S. equation may not always have an economic benefit. On the positive side, cattle that currently grade CDA Y3 using the Canadian prediction equation may fit into the USDA Y1, Y2, or Y3 grade. There’s an equal chance that it could go the other way, with CDA Y1 or Y2 falling into the USDA Y4 or Y5 classes. Delaloye questions whether the

industry has to wait for cumbersome regulatory amendments to communicate effectively in a North American marketplace. She offers some food for thought on alternatives that may be more measurable and manageable than yield for establishing the value of animals whether they are rail graded in Canada or the U.S. One is to develop an index system based on yield, along the line of that used by the hog industry. Hog producers receive a premium or discount based on whether a carcass indexes above or below the average index of 100. As it stands, the existing threeyield-class Canadian prediction equation doesn’t provide an average, or

benchmark, against which beef producers can measure their production, she adds. Another option would be to focus on optimum fat cover as defined by the North American beef industry and receive premiums and discounts accordingly. “The fact of the matter is that the value of an animal shipped north or south of the border should not differ. Call it whatever you want, Canada Y2 or USDA Y1, it is the same animal and should have the same value,” Delaloye stresses. “We need a common language to define that animal and establish its value.” C — Debbie Furber

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Cattlemen / March 2012 9

MANAGEMENT

DON’T TAKE BEEF DEMAND FOR GRANTED People still like it, but not at any price

eef is hanging on to first place as the No. 1 protein in Canada, however, a University of Guelph study says chicken is poised to give beef a run for its money at the retail counter. “Some retailers argue that beef will always be No. 1 of the proteins because of its taste,” says Dr. Tanya Mark. “Others say there is a threshold on each customer’s willingness to pay. If the price of all proteins increases, then beef sales should remain consistent, otherwise they expect poultry to outperform beef. Consumers are asking retailers for more frequent beef promotions.” This is one of the early findings from Mark’s ongoing study, “Canadian Beef Trends — A Retailer’s Perspective.” It got underway in January with personal interviews of senior directors and managers of fresh food departments representing a cross-section of Canadian retailers. Mark says retailers face several chal-

lenges in today’s marketplace, however the quality of beef isn’t among them. “So, keep up the good work,” she urged producers at a recent feedlot conference in Lethbridge. “Don’t lower quality. Branded programs are important in the beef industry for driving demand and consistency is important for AA programs.” The greatest challenge for Canadian retailers is competition. They are looking for ways to differentiate themselves from others in order to maintain market share. Having a unique value proposition is key to success in this industry, she says. Mark’s findings mirror the observations of Steve Molitor of Cargill Meat Solutions in Wichita, Kansas. He says major food chains across the U.S. as well as Canada are jockeying to find a way to differentiate their meat counters. Some feature their own premium brand that delivers on certain promises; others are the polar opposite

Top beef consumption trends in Canada Source: Dr. Tanya Mark, the University of Guelph, January 2012 1. Growing preference for vegetables: Traditionally, meat has been centreplate. Now consumers are moving toward larger portions of vegetables and smaller portions of beef. 2. Fusion-style meals: Caucasians are interested in fusion meals, for example, Asian stir-fry. 3. Changing demographics with increasing numbers of Asian immigrants: Asians prefer fish and chicken over beef and their preference in beef cuts is different from that of the Caucasian population. 4. Younger consumers: This segment pre-

10 CATTLEMEN / MARCH 2012

fers value-added offerings that offer convenience and simplicity. 5. The new “normal” is a price-conscious consumer: Features drive protein sales and consumers will stockpile meat when it is on sale and then wait until the next sale before replenishing their supply. Expect to see more promotions for beef. 6. Canadians prefer “local” beef: There is a threshold on what consumers are willing to pay for local beef and the quality has to be there. In Central Canada, consumers prefer “Ontario” beef. In Western Canada, local means “Alberta” beef. Consumers want to support the sustainability movement

Dr. Tanya Mark offering a AA brand or AAA generic program at a lower price point. Some have opted for a two-tiered approach with more than one feature program to appeal to consumers of all income levels. Several chains target specific consumers by promoting a shopping and/or eating experience through such offerings as a cookie-cutter store design, personalized service, in-house chefs and consumer education classes. Whether they are trying to gain a competitive advantage on the basis of pricing, diversity of choice, or service, all retailers are striving for consistent quality to build trust and a loyal customer base. Continued on page 11

and are very proud to support their neighbours and the environment. 7. Organic or natural beef’s market share will remain small: Retailers across Canada consistently repor t that organic beef is a very small market, less than two per cent of sales. Consumers like the idea, but are not willing to pay the price. However, they would likely buy more if the price differential was smaller. Western Canada has a small, but successful offering of organic beef, although it has to be “certified” organic. Some retailers have pulled organic and natural beef from the fresh meat case because the market is so small, but most still offer a small selection of frozen organic beef. It is a niche market, for consumers who are not price sensitive.

www.canadiancattlemen.ca

Continued from page 10

Cargill’s retail customers in North America say the main thing that consumers of all different incomes need, want and ask for is choice. They want to be able to choose from a full range of quality grades from Prime, Canada AAA/USDA Choice, Canada AA/USDA Select, to Canada A/USDA no roll. While Cargill aims to provide that choice, Molitor says the company and its retail customers are very much focused on a quality beef model to preserve taste and tenderness of beef in order to preserve beef demand in the long term. “Times are tight and at some price point, consumers are going to make choices. At the end of the day, it will be quality that wins consumer loyalty to beef.” Mark found that the percentage of the meat case devoted to beef ranges from 15 to 50 per cent, depending on the type of retailer, and that food service merchandising counters will be a priority for most retailers in 2012. These are counters where customers can request items that aren’t available in the case-ready section, such as certain cuts or sizes, preseasoned meats and fresh meal kits. Currently, five to 15 per cent of beef sales are made through merchandising counters, where retailers use value propositions such as “meal solutions” and “gourmet offerings” to attract consumers. Operating an effective merchandising counter is not without challenge, namely labour, because retailers want staff to engage with customers and service must be consistent. Most retailers offer employee training on their beef program, service and cooking preparation, however, these efforts don’t always translate into better service for consumers. Educating consumers about beef is another major challenge identified by retailers. They are trying to deliver information about beef cuts and smaller portions of beef as a healthful protein alternative to chicken, as well as bigpicture messages that Canadian beef has the best taste in the world, Canada is a leader in food safety, and Canadian beef producers are socially responsible. Mark says Canada Beef Inc. — cattle producers’ national research and market development agency funded by checkoff dollars — is well recognized by retailers and was mentioned

in a favourable light by several of them during their interviews. They also tell her that cattle traceability is a challenge. They see a trend toward consumers wanting to know where the beef comes from, but find it difficult to get the information from the mainstream beef production chain. Working to strengthen supply chain relationships is one way beef producers could help to get this type of infor-

mation through to consumers, she suggests. Overall Molitor says the demand for Canadian beef in Canada has weakened due to the strength of the Canadian dollar and the amount of imported U.S. beef that is readily available in the populated centres in Eastern Canada. The positive news is that Western Canada remains loyal to Canadian beef. C — Debbie Furber

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www.canadiancattlemen.ca CC Mar 12 12.indd 1

2/8/2012 5:23:16 PM

doing more. using less.

A series on being ready for the farming challenges ahead

Climate Change: The cause may be open for debate, but the effect isn’t. The world has been getting warmer.

Farmers are part of the solution If greenhouse gases are even partly responsible for such instability, then it’s our collective responsibility to reduce them. That includes all of us in agriculture. That presents a dual challenge: producing as much food — and more every year to feed a growing population — but doing it with fewer fossil fuel resources. Not that this is anything new to farmers. Doing more with less is part of running a successful business. If farmers can

gloBAl lAnd-oCeAn TemPerATure indeX .6

Temperature Anomaly (°C)

or farmers, that’s been a mixed blessing, depending on who they are and where they farm. If you’re in southern Ontario or the U.S. Corn Belt, you can probably thank global warming for some of the yield increase you’ve seen over the past few years. Just by itself, a longer and warmer growing season means higher yields, but it’s also allowed plant breeders to develop longerseason varieties to take advantage of it. If you farm on the Canadian Prairies, you can thank global warming for offering you new crop alternatives — soybeans are now a major crop in some areas. But there’s also a downside. One of the predicted effects of climate change is not just warming, but instability. Prairie farmers found that in 2009 and 2010, two years when unprecedented moisture prevented millions of acres from being planted. Reinforcing the concern about instability, last spring, the rains stopped abruptly and drought became a concern in some areas, and remained so as we entered 2012 with record-warm temperatures and minimal snow cover. These losses pale in comparison to the devastation and loss of life from flooding in Pakistan in 2010 and 2011, and unprecedented flooding in normally dry Australia in those same years. Meanwhile, the worst drought in 60 years has devastated crops in Somalia, Ethiopia and Kenya, resulting in tens of thousands of deaths and forcing millions of people — many of them farmers — to leave their homes and move to refugee camps.

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produce more crops and livestock while at the same time producing fewer greenhouse gases — or absorbing them from the atmosphere — it’s a win for everyone. There’s no better example of that than how North American farmers have adopted minimum- or zero-till farming practices. That means fewer equipment passes and less fuel, but the greenhouse gas reduction benefits go well beyond that. Minimum till keeps carbon out of the atmosphere and in the ground where it belongs. That means improved fertility, less use of fertilizer and preserving soil to produce crops well into the future. Not only is equipment making fewer passes, but each of those passes is more efficient due to the industry’s adoption of progressively more efficient equipment, such as the latest Tier 4 engine technology. The advantages go beyond lower fuel bills. A cleaner engine is a more reliable engine that needs less maintenance, and therefore a machine that is available for more time during those increasingly unpredictable seeding and harvest periods. We can’t predict changes to weather and climate, but by being ready for them, farmers can do a better job of handling the challenges of the future.

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MANAGEMENT

DOES YOUR BUSINESS APPRECIATE?

irst off, I would like to thank all of you who take the time to read my articles. What is still very overwhelming for me is the number of people who phone or email with questions and comments about my ramblings. It is uplifting and rewarding for me to receive your compliments and questions. Thank you all for your positive comments. Please do not hesitate to contact me if you have any questions or comments about my articles. Your opinions are always welcome. If you don’t mind, I would like to talk about appreciation today. I ran into the manager of the Lakeland Applied Research Association (LARA) the other day and I was very impressed at how they managed to have their organization appreciate. Now there are two meanings for the word appreciate. It can show appreciation for something as I just did to you, my reader. Or the organization becomes more valuable — it has appreciated. I would like to show you today how they have done both. LARA is a producer-run Applied Research Association that provides unbiased information, trials and demos for local producers. They work with cropping practices, forage management and livestock-related research and provide the information back to the producers through demos, seminars, newsletters or even one-on-one meetings. I have been an outside observer of the LARA group for some time now and I have seen them transform from a group that just about folded, to a strong, respectable organization. So how have they done so well? How did they transform their organization? Can it be explained by how hard they work, and how meticulous they are about their research? These examples may be part of the answer but I am going to tip my hat and give most of the credit to the staff at LARA for their strong effort in human relations. One of the things that impressed me the most about this organization was their strong desire to connect with their customers or in this case, their producers. The staff at LARA have a passion for what they are doing and it shows. Whatever your business, I believe human resources are a very important part of its success. Connecting with producers is not always easy. I for one am quite aware of the obstacle a younger person has in agriculture today when it comes to educating an industry when the average age of your target audience is over 50. Most of the applied research and forage associations have young managers and young technicians and LARA is no exception. It is very difficult to gain trust and respect in this situation. I know this first hand. It is important to have good communication skills and I feel it is important to show appreciation to those people and organizations that are a part of your business. Appreciation is a powerful tool. LARA has worked hard to connect with the producers in their area and in my opinion, has done a pretty good job 14 CATTLEMEN / MARCH 2012

Steve Kenyon at showing the value of their research and extension. The “Producer Appreciation Nights” LARA plans sure go a long way in improving these relationships. I guess what I am trying to say is that the more you can show your appreciation to the people in and around your business, the more your business can appreciate in value. Let people know how much they mean to your business. It’s just plain good for business. On my ranch, good customers get little extras, discounts and verbal appreciation. I extend this to more than just customers. Employees, landowners, other businesses that I rely on; I always try to put in a little extra effort to show them how much they mean to my business. So here is my chance. To my customers, your business with me is much appreciated. To all my landowners and investors, I am grateful for the trust you put in me to manage your land in a sustainable manner. To my repair shop, thanks for all your effort and patience to accommodate my business. To the producers who attend my schools and seminars, thanks for your desire and willingness to learn from my mistakes. It is an honour to have you attend my sessions. To all the government specialists, research and extension professionals who help promote and work with me; thanks for all you do. (I better not forget to thank my editor.) Thank you in helping me fulfil my true authenticity, to educate. To my employees and interns; thanks for your hard work and desire to learn. And I can’t forget the most important part of my business, special thanks to my family. They are the reason the business exists. Your love and support is much appreciated. C — Steve Kenyon Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www.greenerpasturesranching.com, 780-307-6500, email skenyon@ greenerpasturesranching.com. www.canadiancattlemen.ca

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MANAGEMENT

SMALL AND MANAGEABLE Jane Charlotte created a one-woman operation

ane Charlotte faced every artists’ dilemma — how to creatively fill her canvas. This was a special canvas, though — one that Mother Nature had started to paint with shades of green across rolling foothills. How could she bring it to life without distracting from the intent of the original artist? The subject she chose was cattle and she called her never-ending work of art Koru Farm. Eleven years later, Charlotte has a small but successful yearling operation, farm gating her production as natural beef. She purchases calves each spring, grasses them through the summer and puts the finish on them with a ration of hay and grain. The yard falls quiet by November, leaving her to focus on her work as an artist and ponder the elements she will add to the Koru Farm canvas the following year. Having grown up and studied art in Calgary, she knew that she would eventually move back to Canada after a successful 15-year career as a portrait painter in New York City. In 1992, she purchased a quarter of land for a retreat northeast of Rocky Mountain House, Alta., near where her sister and brother-in-law run a mixed farming operation. She soon found herself the co-owner of some cattle and spent the next few years travelling back and forth between New York and the farm to help out during the busy seasons. During that time, she completed a number of correspondence courses in agriculture offered by Olds College. By 2000, she was ready to make the move to the farm permanent, but she knew that farming the conventional way was out of the question for her. So was leaving the land dormant. “As the owner of the land, I felt I should be a steward and to maintain it I knew I needed to have livestock because of the symbiosis between livestock and grass,” she explains. She also knew she would have to arrange everything entirely on her own, therefore, the farm would need to be designed so that she could carry out the day-to-day operations by herself. Heeding the voice of experience, she built a system that required minimal investment in machinery. Her largest piece of “iron” is her skid steer, which is handy for moving bales, pushing snow, construction and almost any other job that needs doing. For everything else, there are custom operators. Knowing full well the cost of obtaining a formal postsecondary education today, Charlotte continues to be both amazed and impressed with the quality of educational opportunities available to producers. For very little cost, conferences, workshops and pasture walks offer everything from expert lecturers to practical solutions that have been tried and tested by researchers and producers. She really appreciated the opportunity through the

16 CATTLEMEN / MARCH 2012

Jane Charlotte National Sustainable Grazing Mentorship Program to connect with Albert Kupiers, manager of the Grey Wooded Forage Association, as her mentor while implementing her managed grazing system in 2002. “I like the way Albert approached it. You don’t have to make changes to your whole operation to approach grazing in a managed way. It’s OK to start small and work it into your lifestyle,” she says, noting that some people shy away from managed grazing because they feel it’s too time consuming to be moving fences every day or every few hours. A combination of learning experiences from a Dylan Biggs low-stress livestock-handling clinic and Temple Grandin’s presentation at a Grey Wooded Forage Association event, motivated her to construct a corral with curved corners and a semi-circular chute sized for yearlings so that she would be able to easily treat an animal by herself. “At the livestock-handling clinic I learned how cattle react to me, but even though I did what I was supposed to do, the corral corners created a block for the cattle. They would get to the corner then stop and turn around. That’s why Temple’s round corral system made so much sense to me,” Charlotte explains. Building the corral largely on her own led to the creation of a corral panel jig to hold the rail boards in place on the curve while she pounded them to the posts. It earned firstplace honours in the innovation-of-the-year contest at the 2008 Western Canadian Grazing Conference. Her prize was 100 Powerflex posts typically used for permanent electric fences. They are made from a composite material that withstood the elements and eliminates the need for insulators because the wires are strung through small holes drilled in the posts. Her homemade snapper wires are used to train new arrivals to the electric fence. They are made by threading two- to three-inch strips of shiny metal onto a wire that is then wound around a single-strand electric fence wire. A single snapper wire surrounding a pile of hay in the training pen ensures every calf is exposed to the full effect of Continued on page 18 www.canadiancattlemen.ca

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orders until June, with down payments required by August. Extra animals are marketed by other means. the fencer before it is turned into the “I took the 160 animals one year pastures. because I felt the land needed to have “This might sound drastic, but I an intensive trampling and the weather know if I don’t train them to the elecconditions were favourable. The pastric fence, I will have crashes in the tures benefited from the extra hoof pasture,” she explains. In Charlotte’s action, as did her own health from the managed grazing system the feed-out extra hiking, biking and snowshoeing lines from the fencer run north-south to move the cattle. and she moves the east-west line as Pastures seeded to a mix of brome, needed to control grazing. That’s usutimothy, orchardgrass, fescue, alfalfa ally once or twice a day, depending on and alsike clover in 1993 now sport the condition of the pasture, and the 14 species within a three-metre square time of year (stage of plant growth) as area. well as the number of animals and her Legume seed is sometimes mixed in target stocking density for that part of with loose salt to rejuvenate pastures. the pasture. Germination is best when the weather She has grazed as few as 30 aniis cool and the soil moist, which is most mals and as many as 160 animals in a often in the spring. Sowing grasses season, depending on the price of hay, won’t work this way, so she sprinkles pasture conditions, and the cost of handfuls of grass seed over needy areas leasing additional pasture. which seems to work just fine. The high price of yearlings will “The biggest challenge is planning come into play this year and she plans around the location of the water,” she to purchase only enough animals to adds. Approximately 7,000 feet of fill her beef orders. Between 40 and pipeline run from a well to 50 be 12-02-14 ideal. She accepts WHhead PP - 7would x 5 -_AGI 10:57 AM Pageoverland 1

Continued from page 16

spigots positioned around the pasture to fill portable stock tanks. Electric tape threaded through insulators and bolted to the tanks prevents the cattle from playing with them. A winterized well with a solar pump serves the corral area. She considers the solar pump to be another worthwhile investment because all she has to do is maintain the batteries to keep it operating. In the event of a well failure, the solar pump could be moved to pump water from the dugouts, which have been converted to riparian areas. Her latest discovery is the woofer program, organized by the World Wide Opportunities on Organic Farms (WWOOF). Woofers are adults of all ages from many countries who volunteer to work on farms to learn about farming and for the cultural experience. Farmers from around the globe who host woofers agree to provide comfortable room and board, five or six hours of work a day, and Continued on page 20

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include their volunteer in family and community life. Charlotte has hosted three woofers. Her daughter had an eye-opening experience as a woofer on a farm in Argentina and returned with a heightened appreciation of farming opportunities in Canada.

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Charlotte purchases 500- to 600-weight calves from the same farm whenever possible because she has to know the background of the calves and how they will finish out for marketing purposes. Their introduction to her system begins with a day in the round corral. The next step is the large training pen with an electric wire strung inside a six-strand barbed wire fence. This is where the lure of the loose hay surrounded by the snapper wire is too difficult for them to resist. Two days later, they move onto a 30-acre field where hay bales placed at random are surrounded by a singlestrand portable electric fence positioned to prevent the calves from getting into the hay. At feeding time, she forks hay under the wire. This feeding method requires considerable labour on her part, however, it eliminates wastage while still providing the nutrient cycling benefits of a traditional bale-grazing system. The bonus is that the cattle get accustomed to the presence of her and her dog. The training period has to happen before spring thaw to minimize damage to the pasture, however, it will be some months before the grazing rotation brings the cattle back to the training field. She expects the calves to gain about two pounds a day on the hay ration and 2.8 pounds a day on vegetative forage in the managed grazing system. The finishing ration of hay and oats or barley grain targets an average daily gain of up to 3.5 pounds per day. They finish out at weights between 900 and 1,100 pounds and are shipped to Rocky Meats in Rocky Mountain House for processing.

Marketing Her venture into direct marketing natural beef began with an incidental sale to a friend in Calgary and word spread like wildfire. Finishing the yearlings on a grain-based ration produces the mild flavour her customers prefer and the 21-day aging time gives it the tenderness they have come to expect. The animals that finish at lighter weights are ideal for customers who prefer smaller cuts and fewer pounds of beef in a half or whole package. She had first anticipated that her customers would be people who needed a less expensive option for beef, but came to realize that the people who could benefit from the cost advantage of buying a half or whole beef just don’t have the budget to buy that much at a time or a deep-freeze to store it. As it turned out, her customer base is largely people who want to purchase home-raised beef for reasons other than the cost saving, most commonly because they know the source and how the animals have been raised, or simply want to support the local beef industry. Many have brought their families to the farm to learn about where food comes from. That brings her full circle to the reason why she finds farming to be an interesting and satisfying career. “For me, the exchange of experiences and information between people is the biggest benefit to entering the farming world.” C — Debbie Furber www.canadiancattlemen.ca

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N u t r i t i o n

by John McKinnon John.mckinnon@usask.ca

Finishing cattle requires a unique skill set John McKinnon is a beef cattle nutritionist at the University of Saskatchewan

or many feedlot operators the holy grail of cattle feeding is marketing at a profit a pen of 1,450-pound steers dressing out at 61 per cent and grading 50 per cent AAA or better. For the uninitiated, this is a bit like hitting a home run or getting an eagle on the 18th hole. The significance of this accomplishment should not be underestimated. It implies that someone has taken a pen of weaned calves or yearlings and manipulated their growth over a period of 125 to 250 days such that at slaughter, these cattle yielded carcasses that met and exceeded market expectations. Finishing high-quality cattle is a skill that comes with experience. Many who background cattle are often surprised that finishing is not just an extension of the feeding program, but entails a shift in thinking and management with a greater emphasis on feeding, health, risk management and carcass quality. Backgrounding programs focus on healthy calves, keeping costs to a minimum, controlling weight gain and promoting frame development. While this is no easy task, finishing cattle is more complicated particularly when it comes to market expectations. A number of variables influence the value of cattle at the plant. These include live and carcass weight, their ratio (dressing percentage) and the degree of finish the cattle are carrying (i.e. carcass quality and yield grades). Live weight at slaughter has steadily increased over the last 15 years and likely averages 1,400 pounds or better. Carcass-quality grades are based on the degree of marbling or intramuscular fat (i.e. A, AA, AAA, and Prime). Unless you are in a grid program, chances are you are not paid a premium for higher-marbled cattle, however, Canadian packers expect a minimum percentage of AAA in a load, typically 30 per cent or more. Failure to achieve this minimum can dampen their interest in future loads. As well, too high a percentage of single A can result in discounts. Yield grades (Canada 1, 2 or 3) give an indication of the degree of finish at slaughter. Too high a proportion of over-fat carcasses (i.e. Canada 3) indicates the cattle were fed too long. Again depending on packer sensitivity, discounts can be applied. Dressing percentage or the ratio of hot carcass weight to shrunk live weight is important to both the feeder and the packer. If you are selling live, the packer buyer’s estimation of dressing percentage is factored into your price.

22 Cattlemen / March 2012

At today’s prices, for every one per cent increase or decrease in dressing percentage, a live bid can change by as much as $0.02 per pound or $28 for a 1,400-pound steer. If you are selling on the rail, cattle that dress out at a higher percentage yield heavier carcasses, thus a higher net return. For example, consider a rail bid of $1.85 per pound hot carcass weight. At this price, a 1,400-pound steer dressing out at 60 per cent, yields an 840-pound carcass and nets $1,554. At a 58 per cent yield, the carcass averages 812 pounds and is valued at $1,500. A higher dressing percentage translates to more beef — everybody wins! The question becomes how do you manipulate cattle growth to not only maximize dressing percentage but also marbling? While there are many factors involved, including the genetics behind the cattle, an important part of the answer is “days on feed,” in particular “days on a highgrain diet.” During the finishing period, cattle are growing at or close to their genetic potential. You can divide this growth into carcass and noncarcass body parts. Carcass growth at this time is primarily muscle and fat. These tissues are being deposited at such rapid rates that their growth actually outpaces the rest of the body (i.e. head, gut, lungs, etc). As time on feed increases, more of the gain goes to the carcass and less to the body as a whole. The result is that dressing percentage increases with time on feed. It is not unusual to see cattle dress out at 59 to 61 per cent. It is also important to realize that during the finishing phase when carcass muscle and fat tissue is being laid down, marbling fat is also being laid down. As with dressing percentage, time on feed and level of grain feeding are critical for cattle to express their potential to marble. Most cattle fed in Western Canada see a minimum of 130 to 150 days on diets that are 80 per cent barley or more (dry matter basis). It is the energy from these high grain diets that drives the deposition of marbling as the animal approaches slaughter. The relative proportion and growth of carcass fat and muscle is also influenced by implants and some of our newer feed additives, such as beta agonists. These products enhance dressing percentage by promoting energy use for muscle growth at the expense of fat tissue. As I indicated above, finishing cattle requires a unique skill set, typically acquired through experience. The result however, is high-quality Canadian beef. The best money can buy. www.canadiancattlemen.ca

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VET ADVICE

Johne’s disease: are we doing enough? First cases A chronic debilitating intestinal disease of cattle was recognized in Europe as early as 1826. By 1894 it was recognized as an infectious disease and characterized by Drs. Heinrich Johne (German) and Frothingham (U.S.). Johne’s disease was first described in the U.S. in 1908. Johne’s disease, also called paratuberculosis, is caused by the bacterium Mycobacterium avium subspecies paratuberculosis, abbreviated MAP. Calves less than six months of age are generally considered to be at the greatest risk of becoming infected with MAP. While the incubation period from time of infection to clinical disease is dependent on the infective dose, it averages about five years. One of the greatest difficulties in controlling Johne’s disease within and between herds, is the presence of animals that shed MAP organisms in their feces before clinical signs become apparent.

Unheeded warnings It took 70 years before any country began to develop systematic methods to try and stop the spread of paratuberculosis among herds. By then Johne’s was found in over 60 per cent of North American dairy herds and 10 to 15 per cent of beef herds. MAP is tenacious. Survival in damp, unsanitary conditions extends beyond a year. Direct sunlight and exposure to UV radiation has the greatest impact on MAP survival. The organism is resistant to heat and has been shown to survive high-temperature, short time pasteurization (72 C for 15 seconds) in raw milk.

Diagnosis The discovery of a genetic element unique to M. tuberculosis ushered in a new generation of paratuberculosis research. Identifying a segment of DNA in MAP organisms called IS900 enabled development of genetic tools for detection of MAP without having to cultivate the bacteria under laboratory conditions for 12 to 16 weeks. Through the use of IS900 gene probes, a wealth of information has been learned about MAP’s distribution in the natural environment and the species it infects. Most provocative are reports that M. paratuberculosis is found in the tissues of over half of humans with Crohn’s disease. To date, the exact cause of Crohn’s disease remains unknown. The actual percentage of infected animals in the population overall is known to be higher in dairy cattle than beef and definitely higher in cull animals tested at slaughter and auction markets.

Transmission Animals shedding MAP do so intermittently, but the number of organisms shed is measured in millions. Teats, udders and the calving environment quickly become contaminated. A few individual animals, for reasons yet to be discovered, become “super-shedders” and likely represent the greatest source of MAP contamination in herds. Infected cows shed MAP in colostrum and milk. Transmission during pregnancy has been documented.

24 CATTLEMEN / MARCH 2012

Up to one-third of calves from cows showing clinical signs of Johne’s disease are infected at birth. Johne’s disease control must be tailored to specific herds although calving areas and calf rearing practices typically require most of the attention. Typically, MAP infection walks onto a farm with replacement animals. Bulls and replacement heifers can be a source of MAP infections in commercial herds with few questions ever asked about Johne’s disease control at source. The trade in cull dairy cows, dirty trucks hauling heifers bought at auction markets, corral cleaning contractors that move from to farm with little effort to clean equipment between premises and communal grazing arrangements are all points of risk. Efforts to control Johne’s disease have collateral benefits of reducing other diseases.

New vaccines on the horizon Researchers continue to look for new vaccine candidates. Limited use of vaccine in the U.S. and in other countries has shown to significantly reduce clinical disease and fecal shedding of MAP, but there are serious drawbacks. Vaccines currently available come with serious injection site reactions, risks to users if accidentally inoculated and complicate interpretation of the diagnostic tests. Genetically engineered sub-unit vaccines with limited side effects will someday greatly enhance Johne’s disease control. Industry’s support of vaccine research needs to be a priority.

Diagnosis of paratuberculosis Research funding has led to the development of a range of diagnostic tests for use in animals infected with MAP. People often find fault with the lack of definitive tests for paratuberculosis as the reason industry hasn’t progressed as far as it should have with control. There is probably a greater diversity of accurate and affordable tests for paratuberculosis than most other ruminant infectious diseases. The present-day challenge for practitioners is to select the appropriate test for the intended purpose.

The way ahead In the absence of Johne’s disease being declared a zoonosis, which would trigger compulsory control as it was with brucellosis and TB, the catalyst for Johne’s disease control will probably come from buyers of replacement stock asking for seller reassurances that purchased animals are not MAP-infected. The purebred industry should anticipate this request and establish risk-management protocols with whatever testing is necessary to offer reassurances to buyers. The chain reaction started in the seed stock industry will work its way into the commercial cattle sector and drive change there. Advances in Johne’s disease control must come. Diseases like BSE taught us all: you can’t un-ring a bell! Dr. Ron Clarke prepares this column on behalf of the Western Canadian Association of Bovine Practitioners. Suggestions for future articles can be sent to CANADIAN CATTLEMEN (gren@fbcpublishing.com) or WCABP (info@wcabp.com).

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PROFILE

TAKING CARE OF CUSTOMERS AND THEIR CATTLE

That’s the motto that underpins Kasko Cattle Co.’s expansion over the past decade and a half

asko Cattle Co. is proud to be marking its 15-year milestone. It’s no small feat for this young company considering the string of setbacks that have hit the Canadian beef industry since the Kasko family entered the custom cattle-feeding business in 1997. Yet, for every knock, the company has bounced back with a step forward. The family — Les, his sons Ryan and Greg, and son-in-law, Todd Lang — got its start with the purchase of the Hwy. 52 Beef Producers lot east of Raymond, just ahead of the U.S. anti-dumping charges brought against Canadian beef producers in 1998. On the heels of the drought years, Kasko Cattle purchased its home lot, which is the former Thiessen feedlot north of Coaldale, in 2001. Acquisition of the north lot a couple of miles away in 2005 was sandwiched between BSE border closures and the spike in feed grain prices. Their latest purchase of the Sandy Hill lot east of Taber in the spring of 2010 came in the aftermath of the U.S.’s mandatory country-oforigin regulations and just before the rain clouds let loose for two years. Kasko Cattle’s standing capacity today totals 44,000 head, providing jobs for 40 people. It remains 100 per cent family owned and operated, says general manager Ryan Kasko. His wife, Shannon, takes care

26 CATTLEMEN / MARCH 2012

of the financial reporting, while his sister, Rhonda, looks after the feedlot’s human resources requirements on a part-time basis. Greg manages the home lot and Todd manages the Sandy Hill yard, while parents Les and Betty continue as advisers in their retirement years. The management team also includes Lyle Adams at the north lot and Dwight Morhart, Cory Powlesland, and Travis Lang at the Hwy. 52 lot. Coming into cattle feeding from the business side with very little knowledge of primary agriculture may have been one of the company’s greatest strengths in the early years, Kasko says. Before buying their first feedlot, the boys had joined their dad in his order-buying business, which he operated from their acreage near Coaldale where there were always a few pens to hold cattle. With minimal experience in the feedlot and farming industry, all they could do was look forward. “We saw great opportunities in agriculture here with good land in a fortunate part of the world where we could produce healthy, high-quality food,” he says. “We learned from our mistakes and lots of times it was the hard way, but we always strive to be progressive and improve all the time.” The bar is set high in this area of southern Alberta where feed mills mark the location of countless feedlots

Ryan Kasko sprinkled across the countryside and irrigation systems bordering the wideopen fields ensure silage yields. The Kaskos have tapped into this wealth of experience so close at hand by working with and learning from professionals, such as Dr. Phil Klassen at the Coaldale Veterinary Clinic, nutritionist Dr. Darryl Gibb, and experienced feeders. Many of Kasko Cattle’s customers on the custom feeding side are professional cattle feeders themselves who look at it as a business investment and expect fair returns from their business investment, he explains. Continued on page 27 www.canadiancattlemen.ca

Continued from page 26

The whole team works hard to deliver on those expectations. The company’s primary focus is on providing consistent cattle performance and accurate information. Though weather is always a factor, Kasko says having protocols in place to predict cattle performance results in fewer surprises on the closeouts. Consistent performance hinges on the way the feed is delivered to the cattle as much as on balancing the rations to meet the animal’s target growth rates. “We know precisely what we want in the bunk and computerized systems in the feed trucks tell the operators exactly what went into the truck and how much was delivered to each bunk,” Kasko explains. “Our focus on measuring forces the people doing the feeding to do their very best and to be as precise as possible.” This is a big step up from when they first began feeding cattle. Back then they had scales in the truck, but all of the details about what and how much was delivered to the bunks had to be recorded on paper. The same can be said for the computerized chuteside systems for recording treatments that are now used by many feedlots. In the early years, pen checkers wrote down what was given to each animal on recipe cards. Now it’s all recorded electronically. When an animal’s electronic identification tag is scanned, the computer brings up its health history for the entire time it has been in the lot. “This enables us to make better decisions on how to treat animals and, from a food safety perspective, to ensure that proper withdrawal times have been met before shipping animals that have received treatments,” he explains. Kasko Cattle participates in the Verified Beef Production On-Farm Food Safety Program delivered by Alberta Beef Quality Starts here. In fact, the Hwy. 52 Beef Producers lot was one of the first feedlots in the province to go on the program. Doing the best possible job of taking care of the animals goes beyond meeting their nutritional requirements and health needs to making every effort to ensure animal comfort. Through the years, the company has made significant investments in upgrading the pens and handling facilwww.canadiancattlemen.ca

ities at each of its lots. Some of the recent improvements have been made in consultation with Dr. Temple Grandin, who took the time to go out to the feedlot with the local veterinarian during a visit to Alberta. Going a step further by implementing a third-party audit of animal welfare standards at all their feedyards has helped maintain the focus of the company’s animal welfare initiatives. An audit pinpoints areas where improvements could be made in facility design and maintenance and animal handling to reduce stress and injuries for animals and employees. Kasko feels it has made a noticeable difference as far as improv-

“Our focus on measuring forces the people doing the feeding to do their very best and to be as precise as possible.” ing efficiency and reducing problems with animal injuries. More importantly, from a safety standpoint, going through the audit process provides excellent training for their staff. Two years of unprecedented precipitation in the Lethbridge area proved to be a pretty good audit on environmental efficiencies. It showed areas that need to be improved, that resulted in significant structural damage to the base of pens and fences. Years of work to improve drainage and install proper catch basins proved inadequate in many cases. Feedlots in the area hauled in hundreds of thousands of dollars’ worth of dirt to repair the damage. Thanks to the long, open fall and mild winter, Ryan is hopeful that the groundwork done last fall will be able to stand up to whatever the weather has in store this year. “It’s all part of our continual improvements with every part of our business,” he says. The company’s goals are rolled into a mission statement that will continue to serve the company well going forward: “We are a progressive, customer-centred

feedlot and farming business focusing on consistency, food safety, environmental sustainability and economic sustainability.” As for future plans, he says they have their hands full for now, but that doesn’t negate keeping their eyes open for new opportunities.

Industry proponent Ryan feels it is important for everyone to do what they can to contribute to the industry. He is looking forward to his two-year term on the board of the Alberta Cattle Feeders Association, just as he appreciated the opportunity to serve as a zone delegate to the Alberta Beef Producers for four years. That was during the BSE crisis and he found that being involved gave him a greater understanding of the issues and an avenue to have meaningful input. “From that experience, everyone realized the value of having strong organizations to work with governments to find solutions to some of the challenges and to promote our industry in a positive way,” he says. “It will be even more important to have strong organizations to tell people the truth about their food.” He is still surprised at how many people who have grown up in the Lethbridge area have never been to a feedlot, so he takes every opportunity to showcase the feeding industry to people who are interested in learning about where their food comes from. Being close to Lethbridge, the company has hosted numerous tour groups, from local school classes to international delegations. “The reaction is very positive,” Kasko says. “People appreciate the details on food safety and all of the quality controls we have in place. They are also pleased to see all of this big, nice space and cattle that are relaxed, happy and content — often unlike the pictures they may have formed in their heads. I tell them that a feedlot is like a spa for cattle because they have all of the things they need to live comfortably. It’s really a good opportunity to send positive messages home with people that we produce beef in the best manner we can to provide beef that is healthy, safe and tasty.” For more information, visit www. kaskocattle.com , or call 403-3454301. C — Debbie Furber Cattlemen / March 2012 27

Amaglen Limousin :: Darlingford MB Ian & Bonnie Hamilton 204.246.2312 / amaglen@inetlink.ca www.amaglenlimousin.ca

Bar 3R Limousin :: Marengo SK The Rea family 306.463.7950 / 306.968.2923 r3bar@hotmail.com

Campbell Limousin :: Minto MB Bill & Lauren Campbell 204.776.2322 / 204.724.6218 cam.limousin@xplornet.com

Cherway Limousin :: Sanford MB McPherson family 204.736.2878 / info@cherwaylimousin.ca www.cherwaylimousin.ca

Cochrane Stock Farms :: Alexander MB The Cochrane families 204.573.6529 / 204.724.0892 www.cochranestockfarms.com

Diamond C Ranch :: Ponoka AB Neil & Sherry Christiansen 403.783.2799 diamondcranchlimousin.com

Eden Meadow Farms :: Zehner SK Terry & Lynette Hepper and family 306.781.4628 thepper@yourlink.ca

Excel Ranches :: Westlock AB Ron & Barb Miller 780.349.2135 / excelranches@hotmail.com www.excelranches.com

Gutek Farms :: Hendon SK Jeff / Raymond Gutek 306.338.2002

Hi-Way Limousin :: Bethune SK The Fuchs families 306.638.4422 / 306.789.8863 306.638.4800 / d.fuchs@sasktel.net

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Richmond Ranch :: Rumsey AB Jim & Stephanie Richmond 403.368.2103 / bulls@richmondranch.com www.richmondranch.com

Top Meadow Farms :: Clarksburg ON Mike Geddes, manager 519.599.6776 / topmeadow@bmts.com www.topmeadowfarms.com

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Y2K Limousin :: Caledon East ON Robert Nimmo 905.584.4477 / 416.580.5714 farm@robertnimmo.com

cla_feb12Cattlemen.indd 1

12-02-08 9:39 AM

HEALTH

INFORCE 3 — A NEW INTRANASAL VACCINE It can give a quick start to the virus protection for young beef calves

ome of us longer in the tooth than others remember the days when the first cattle vaccines for respiratory disease and abortions were intranasal products. It was said of them that immunity administered this way was quick and localized, and the product was safe. The only pain was squirting one cc up each nostril. Older cattle, especially the cows, were pretty head shy in the chutes we had back then. With time we saw injectable modified live and then killed vaccines. And now we have come full circle with the introduction of a new intranasal vaccine that provides protection as before against IBR and PI3 but with additional protection against BRSV (bovine respiratory syncytial virus). The product is called Inforce 3 and is made by Pfizer Animal Health. It comes in 10-dose and convenient individualdose sizes so individual calves in dairy barns can be dosed at the ideal time. A 50-dose package should be available in 2012. It should also be mentioned this product is only available through your veterinarian. It is a modified live vaccine so the powder has to be rehydrated with the diluent and should be used within a few hours. Because the product is squirted up the airways it is very safe to use on pregnant animals and really mimics nature’s way of how cattle contract respiratory disease. The BRSV component is the weakest and hardest to make in the modified live vaccines. This virus is also involved in lots of the respiratory outbreaks in young calves, which respond very poorly to treatment. Viral diseases really don’t respond to antibiotics. The label calls for a half-dose to be squirted up each nostril. While there is no efficacy data to tell us if there really is any difference between giving two cc up one nostril versus one cc up each nostril, anecdotal evidence suggests there is no difference. And we all know how difficult it is to get anything up 30 CATTLEMEN / MARCH 2012

that second nostril. Cattle are smart and become very elusive by the time you get round to that second nostril. With the old intranasal vaccines most producers took the easy route and used only one nostril the majority of the time. Young calves are inquisitive enough that it is easier to hit both nostrils in them compared to fractious cows where squirting it up one nostril may be all you can get. So using two cc up one nostril alone makes life a lot easier. To me the quick immunity that Inforce 3 provides locally plus the fact that stimulating local immunity in the windpipe leads to the produc-

It provides a great non-stressful start to protection in young calves tion of interferon, a non-specific viral fighter, is a real plus. Too much interferon can be toxic at high doses so the vaccine is formulated to produce only so much interferon. Where will this vaccine be utilized? It really has a fit in the dairy industry in young calves. It is very common for respiratory disease to spread through the calf-rearing barns. Although immunity will be shorter (in the order of up to 120 days) it provides a great nonstressful start to protection in young calves. They will be boostered with the four- or five-way virals at a later date. The question may be asked — why is BVD not included in this intranasal vaccine as it is an important disease to protect against and is in both the killed and modified live vaccines? Other companies have tried it but high death losses in calves were experienced. At this time the BVD component is too harsh to be given by this method, and it may enhance the expression of the other diseases. That is why a very large

safety study was done on this vaccine before it was released. It found Inforce 3 to be very safe both in terms of causing disease and creating abortions. In young calves under three months of age it is suggested that the cannula be changed for every calf, and every five or so calves when they are over three months of age. This minimizes transmission of respiratory pathogens between calves in case one of them is incubating something. This vaccine could also fit with young beef calves where respiratory disease has been an issue. Again they will be boostered with four-way or five-way virals at branding. It could also work with show cattle or other exported animals where the stress of handling and transportation is a problem because it provides good local immunity within 72 hours so it can be given just as they are leaving the yard. Keep this vaccine in mind any time young calves need a quick start to their disease protection. With young calves, which are inquisitive, they don’t shy away from intranasal vaccines. Cows, bred heifers and older stock are way more head shy. The chutes we use these days with the head bars and/or shoulder restraint devices make restraint and administering of vaccine much easier than in times past. Remember these vaccines are formulated such that even though cattle seem to exhale it back into your face they are still exposed to enough of the virus particles to elicit immunity. Adhere to all the guidelines for administering vaccines in general. Don’t freeze or overheat the vaccine and rehydrate only the amount you will use in the next hour. Don’t mix the vaccine with anything else and use a clean, dried syringe (an automatic syringe works well for administering the multiple-dose sizes) that has no residue in it. This should help ensure adequate immunity and less respiratory disease in your calves. C — Roy Lewis DVM www.canadiancattlemen.ca

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HOLISTIC RANCHING

A good cow (Part 2)

ast month we looked at the primary traits that might be necessary to have a good cow. We defined a good cow as being one that makes a profit. The four primary traits were fertility, calving ease, easy keeping and longevity. Now that we have this good cow defined I want to look at the production level that might make us

for a 140-day grazing season (May 20 to Oct. 10). We plan to gain 1.8 pounds per day for a total gain of 252 pounds. This means that we require a 657pound steer on May 20 (909-252). Weaning on Dec. 1 results in a 170-day backgrounding stage (Dec. 1 to May 20). We feel gaining less than one pound per day or more than 1.5 pounds per day will reduce our summer gain. Our target gain is 1.25 pounds per day. This will result in a total gain of 212 pounds (170 x 1.25). Subtracting the winter gain from the spring most profitable. weight gives us our targeted weaning weight of 445 To help this article make sense I will share some pounds (657-212). dates and production targets that we use on our Calving in May and June and weaning on Dec. 1 ranch. For some of you who run a similar business will make the average age of our calves about 180 it will be easy to identify with my thoughts. Many of days. We estimate the birth weight of our calves at 85 you will operate completely differently. I hope you pounds. Subtracting the birth weight from the weanwon’t just discount my ideas but will think of your ing weight means our calves have to gain 360 pounds operation. I ask you to consider two questions. When from birth to weaning (445-85). Gaining 360 pounds and how can you put on the cheapest gain? What in 180 days requires a gain of two pounds per day. level of production is mostly likely to make you profIt is obvious that the cattle business isn’t quite itable? as cut and dried as the above. Our yearling weight There are three stages in the cattle industry prior could easily vary by 50 pounds. The backgrounding to the feedlot. The first is the cow-calf stage. This is gain could also easily vary by 50 pounds. I have used an essential stage and unfortunately it is the most numbers that we target. How close we come varies expensive way to produce beef. You can reduce the from year to year. cost per pound by increasing the weaning weight but Looking at the above numbers we can determine you will still be the high-cost that 28 per cent of the total stage. Backgrounding calves weight of the yearling steer produces beef at a moderate has been gained on the grass Utilizing the yearling stage cost. Running yearlings on (252/909). Another 23 per grass is the most economical in our operations will allow cent is put on by backgroundway to produce beef. If you ing (212/909). The cow-calf look at the market and the us to have a portion of our stage accounts for 49 per cent cost of putting cows, calves of the total weight (445/909). production done when the or yearlings out on a custom Producing 51 per cent of our basis I think you will agree costs are the lowest… and steer at the low and moderate with this summary. cost stages seems like a forUtilizing the yearling stage more likely to be profitable mula for profit. Would a simiin our operations will allow lar plan work for you? What us to have a portion of our do you think? production done when the costs are the lowest. As we This article was all about a good cow. We have produce more of our total production at a low cost, defined the four primary traits she requires and a we are more likely to be profitable. level of production that will likely make us profitable. We have established that grass gain is the cheapA better cow will not be one that has a higher level est. Let’s see how we might utilize this fact to design a of production but one that is stronger in the four priprofitable program. It makes sense to put on as many mary traits. pounds as possible at the yearling stage. BackgroundThe cow-calf business is fun and exciting. Building ing should produce the most pounds possible as long a profitable herd takes time but it is rewarding and as it doesn’t reduce the summer gain. We have now pays dividends. I wish you success in improving your maximized the low and moderate cost stages. By herd. working backward from a targeted selling weight we Happy trails. will be able to determine what weaning weight we — Don Campbell will require. I am using numbers from our place. I encourage you to use your own. Don Campbell ranches with his family at Meadow Lake, We would like to sell a 909-pound yearling steer. Sask., and teaches Holistic Management courses. He an be We want to maximize the summer gain. We plan reached at 306-236-6088 or doncampbell@sasktel.net. 32 CATTLEMEN / MARCH 2012

www.canadiancattlemen.ca

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RESEARCH

Residual feed intake and heifer fertility

ast month’s research column discussed residual feed intake (RFI). This trait is moderately heritable, so it will respond to selection. Residual feed intake in yearling bulls is positively genetic correlated with feed:gain ratio in feedlot cattle, so selecting for low RFI in yearling bulls should result in lower (more efficient) feed:gain in commercial feed-

performance. For several years, Grow-Safe equipment has been used to measure intake in weaned heifers being fed a winter-growing ration. Growth rate, age at puberty, and fertility are being monitored. So far, results have shown that the low RFI (efficient heifers) ate five per cent less feed than the high RFI heifers. However, the efficient heifers also reached puberty five or six days later than high RFI heifers. This sounds alarming at first glance, because it suggests that selecting for feed efficiency may lead to later sexual maturity, and fertility is a tremendously lot progeny. important trait in the cow herd. But we need to put this But feed efficiency is also important in cows. As a into perspective. Firstly, heifers can reach puberty as early simple example, a 1,400-pound cow might consume 33 as nine months of age, even though they aren’t bred until pounds of forage per day in winter. If feed is valued at they are at least a year old. Reaching puberty five or six $75 per ton, she’ll consume about $220 worth of fordays later doesn’t matter much at nine months, as long age over the course of a 200-day winter. A cow that as they are cycling by the start of the breeding season. maintains her body condition and pregnancy with five In both efficiency groups, over 90 per cent of heifers per cent less feed would cost $10 less to feed. That adds reached puberty by 14 months of age, over 75 per cent up for a 500-cow herd, especially when feed prices are were pregnant by day 37 of the breeding season, all had high. It could also mean that the calved within 42 days of the start of same amount of grazing land the calving season, and there were no may be able to accommodate differences in birth weight or calving five per cent more cows. This difficulty. Differences in cow grossly oversimplified example is Interestingly, low RFI (effifeed requirements could cient) heifers lost fewer calves due intended to illustrate that differences in cow feed requirements “unknown causes” in the month represent a hidden cost to could represent a hidden proafter calving. The reason for this duction cost or opportunity in or opportunity in cow-calf is unclear, but other studies have cow-calf operations. reported the same thing. Perhaps effioperations However, it’s too early to say cient dams provide more nutrients whether selecting a herd sire to their calves during gestation, and with a low RFI will reduce the cow herd’s feed requiremay have better-quality colostrum. Metabolic reactions ments. In feedlot cattle, feed:gain is a logical indication produce some byproducts that can damage protein and of feed efficiency, because feed is the main input cost, and DNA, and may compromise immune function in the calf. weight gain is the main economic output. In contrast, a The higher basal metabolic idling rates of high RFI (inefcow’s economic output (e.g. total pounds of calf weaned ficient) animals may have negative consequences on newover the cow’s lifetime) takes many years to measure. born calf health, though it’s too early to say for sure. Feed intake is also more difficult to measure in cows. Average weaning weights were the same for calves Individual feed intake systems do not lend themselves to born to both low- and high-RFI heifers. However, bulky forage-based diets, since cows can sort, pull out because of the differences in calf death loss in the first and waste feed. This makes it difficult to get an accurate month of life, low RFI heifers weaned 16.5 pounds more estimate of individual cow intake, even in research situacalf per female exposed than the high RFI heifers. tions. Dr. Basarab is using the GrowSafe system to monitor Another complication is that a lean, young rapidly feed intakes in these heifers as they mature into cows. A growing bull’s RFI measurement may not provide a medium quality hay/straw cube is being fed to overcome good indication of how much feed his sisters or daughthe sorting and feed wastage problems associated with ters will need once they have reached their mature size, bulky feed. This study will continue to provide valuable and focus their physiology on maintaining (or regaining) information regarding the impact of selecting for RFI on body condition, reproduction and lactation. There have cow efficiency, size, body condition score, reproductive been concerns that selecting for RFI in young bulls may performance and longevity. have unintended negative consequences on cow fertility — Reynold Bergen or longevity. At AAFC Lacombe, Dr. John Basarab has been studyReynold Bergen is the science director of Beef Cattle Research ing the relationship between heifer RFI and reproductive Council. 36 CATTLEMEN / MARCH 2012

www.canadiancattlemen.ca

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POLICY

TURNING EXPORT DEPENDENCY INTO OPPORTUNITIES

he Canadian beef industry now has an unusually good opportunity to diversify its markets, increase competition for Canadian high-quality beef, and reduce our excessive dependence on the U.S. as our principal export market. When one combines live and product shipments the U.S. receives over 90 per cent of our beef exports today. I should be clear about this. The accidents of history and geography have placed us alongside the largest beef-producing and -consuming nation on earth and, as such, the U.S. market will long remain our largest and our most important export market. This discussion is about the importance of diversification. We are at an important and critical stage in trade negotiations with several countries and it is important that the industry stand solidly with the federal government in its efforts to conclude trade agreements with a number of countries where Canadian beef exports could increase dramatically if and when we have the supply. Many of these negotiations are time limited and missing the opportunities they present would be harmful. The markets of most obvious importance are South Korea where Canada has now gained access, the EU where there is a need to finish an agreement and secure a good deal, Japan where free trade negotiations are to be launched and of course the TPP or Trans-Pacific Partnership. We need an export strategy that both matches our capabilities and acknowledges our limitations. It is appropriate that we should have this discussion now because the cattle cycle is just beginning to turn. Beef supplies will not begin to increase before mid-2015 at the earliest but that gives producers time to think about our prospects and, industry leaders time to plan a coherent market access and export strategy. In my contacts with producers I sense a lot of skepticism about the benefits of seeking greater market access for Canadian beef. My response to that is to look at the determined export thrust of the American Meat Export Federa-

38 CATTLEMEN / MARCH 2012

Charlie Gracey tion. The U.S. is actually a deficit producer. Americans consume more beef than they produce, but they nevertheless are aggressively seeking export sales. They do this for the most sensible reason, to create greater demand for their production. How much more important is this for an industry like ours that must export half of its production? I want to emphasize that I am neither an industry cheerleader nor noted for optimism. I have attended too many meetings where producers were exhorted to increase production by people who, like me, were not themselves invested in the industry. My business is realism and that sense of realism tells me that we cannot and will not realize our potential without a strategy that matches our capabilities. Just a year ago I was commenting to a group of producers in Alberta on the successful efforts the USMEF is having increasing its exports even as domestic supply is declining. I pointed out that a big part of the reason they could do this was because they were “backfilling” their tight domestic supplies with imports of beef and live cattle from Canada. A producer in the audience asked, “What’s wrong with that?” I was stopped cold because that was the exact question I had asked in 1990 when the Canadian Beef Export Federa-

tion was formed. My flawed idea then was that if we have duty-free unfettered access to the U.S. and they used their larger influence to access markets around the world, we could simply ride upon their coattails. Not a bad strategy — for the utterly naive. But we have seen that things didn’t work out that way. A concentration of packer capacity, border skirmishes including a dumping and subsidization charge in 1996, country-of-origin regulations, and BSE have all thickened the border and led to a widening price basis. Riding U.S. coattails wasn’t a good strategy after all as we got discounted by basis as secondhand or “backup” suppliers to markets beyond the U.S. One of the most practical and realistic yardsticks of success as an industry must be, how effectively we can achieve price parity, if not price superiority over the U.S. How will we do that if our main market outlet is the U.S.? The only way to narrow the price basis between Canada and the USA is by creating more international competition for our production. The strategy we develop should build to our strengths such as producer investments in national ID, traceability and age verification. These are attributes we can exploit more effectively than the U.S. And they are attributes the Australians are already exploiting. The other thing to keep in mind is that, at present, we don’t have a lot of beef to sell beyond the U.S., partly because of the stage of the cycle and partly because the established pattern is to sell most of our exportable supply to the U.S. It is now apparent that at the moment we are likely missing some export opportunities because of tight supplies. I have described this industry before as having a long-term planning horizon but a short-term memory. I don’t blame producers for this because inevitably their decisions are rational. What I think we need is better long-term situational analysis and the responsibility for that falls squarely on industry leaders and their organizations. I have spent a good part of my career www.canadiancattlemen.ca

trying to play that role. I am definitely not saying that anyone can predict the future but we sure can do a better job of analysing the basic parameters of the industry and giving producers better information on which to base their own production decisions. The cow-calf producer is the single most important decision maker in the entire beef sector. It is their collective decisions that determine the future beef supply. We owe them solid information and analysis to help them make informed and timely decisions. In my opinion we should focus virtually all of our export efforts on fed beef and, of course offals, as opposed to nonfed beef. Canada is a deficit producer of

www.canadiancattlemen.ca

non-fed beef, which we derive wholly from our culled cows and bulls. Non-fed beef production makes up only 17 per cent of annual tonnage. Add to that the U.S. is also a major deficit producer of non-fed beef. As a result of that Canada exports live cows and bulls to the U.S. for slaughter and replaces those exports with grass-fed beef from South and Central America and Oceania. I flag this because some will argue that if we can find a higher market outside North America for our OTM beef we should do so. My response is, “Good luck with that.” Canada cannot compete with world prices for grass-fed beef and will waste effort trying. Because Canada is a minor player

in the beef export world I believe our strategy should also focus on a limited number of markets. I saw a list not long ago of Canada’s priority markets. Nine countries were listed. Someone should look up the meaning of the word priority. Even the U.S., which exports 10 times more than Canada, ships 66 per cent of its export sales to just four countries. Ironically their biggest export market in 2011 was Canada. Remember that continuity and dependability of supply is a critical requirement for major importers, particularly Japan, the Republic of Korea and China. Continued on page 40

Cattlemen / March 2012 39

Continued from page 39

While our opportunities are real, they are also finite. In my view assured market access should precede aggressive herd expansion and, if this strategy is followed reasonably, market access can stimulate further herd expansion. This is turning past experience on its ear. We in Canada got into the export market, and often won market access by having an excessive supply of beef to sell. In today’s marketplace the only market access worth having is that created by demand pull. Gaining a meaningful beachhead in a limited number of export markets is or should be the launch pad for further herd expansion. Not the other way around. In this article I hope I have emphasized the point that the Canadian beef industry is and will remain a relatively minor player in export markets beyond the U.S. This is simply a function of the present and future size of the industry. So let us look finally at what may be possible. To do this I would propose a maximum national herd size of 7.5 million beef cows and am prepared to accept ridicule if that is viewed as too high. Do not think that I am advocating unbridled herd expansion. I am not. That should be clear. In 1987, 27.9 million Canadians consumed 970,000 mt of beef, 817,000 mt of which were domestic production. In 2010, 34.1 million Canadians consumed 952,000 mt of beef of which only 743,000 mt were domestic production. Unless we can reverse the decline in domestic usage all of our future growth opportunities will be in export markets. The U.S. on the other hand exports very little of its total production.

Live and beef exports (’000 mt) 1987-2010

Beef production, U.S., Australia, Canada (’000,000 mt) 1999-2011

Average High year

U.S.

Australia

40 CATTLEMEN / MARCH 2012

Canada

What I am trying to do is explore what I think may be the outer limits of the industry’s capacity in Canada and I admit it is a target for criticism and discussion. Let us propose that the maximum beef cow herd size is 7.5 million beef cows. I set this number as an outside parameter and did so because I am certain that we won’t reach that number within the next decade. If the herd were to increase to 7.5 million beef cows by 2020 and if consumption patterns stabilized at present levels and our export trade with the U.S. followed present patterns the industry would have something like one million tonnes of beef to export beyond the U.S. and would then play a much larger role in global beef markets. There are a lot of “ifs” in this paragraph and the biggest one is that this scenario is only likely if the industry can do so profitably.

Conclusion What I am suggesting to you is that almost all of the future growth prospects for the industry lie in export markets. The growth in the domestic market is likely to be restricted to the slow pace of population growth. Efforts to increase per capita consumption have not met with any success for the past 30 years so stabilizing consumption at current levels may be all we can reasonably expect. But it is clear that demand for animal protein is increasing around the world both as a result of rising affluence but also as a dietary requirement. It is also true that Canada is better suited than any other country in the world to supply and satisfy the high end of that market. That being the case, the need to discuss these future prospects, and the need to develop a coherent strategy to see it through is abundantly apparent. The process of becoming a more significant player on the world stage as a beef exporter begins with exportable supply and that must come from the cow-calf producer. We should NOT exhort him or her or that sector to produce more. Rather we should supply the industry with more detailed and thoughtful analysis of the industry prospects and work to make those prospects better. We should of course seek and win market access to markets so that producers can be assured of demand pull. As we secure market access we need to service those markets with assured supplies. In the short run, long before supplies are actually increased, there is a sizable latent supply in the large quantities of beef and live cattle that we annually export to the U.S. We should see if we cannot divert some or much of that supply to those new markets. This is a laughably obvious point because if we can’t do this now, or in the near future, we are just talking through our hats. The choice you see is clear. Either we find a way to expand and diversify our markets or we continue to supply our exportable product mainly to the U.S. A point that must not be forgotten in all this is the major and central role packers, both large and small must play if we are to realize our full potential on the world stage. They are, after all, the exporters of record and the owners of the exportable product. Fortunately and wisely they are well represented on the board of your national marketing agency, Canada Beef Inc. C — Charlie Gracey Charlie Gracey is an industry observer of long standing and currently a director of the Alberta Livestock and Meat Agency. www.canadiancattlemen.ca

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Ask your veterinarian about ZACTRAN common sense BRD protection ZACTRAN® is a registered trademark of Merial Limited. © 2012 Merial Canada Inc. All rights reserved. ZACT-11-7560-JA 1. Huang RA, Letendre LT, Banav N, Fischer J & Somerville, BA. Pharmacokinetics of gamithromycin in cattle with comparison of plasma and lung tissue concentrations and plasma antibacterial activity. J. Vet. Pharmacol. Therap. doi: 10.1111/j.1365-2885.2009.01125.x.

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STRAIGHT FROM THE HIP

Linking food, farming and health

onflicting messages within the agricultural industry are not unusual. What is concerning is when the two top men in the Canadian food chain, Michael McCain, president and CEO of Maple Leaf Foods Inc. and Galen Weston, executive chairman, Loblaw Companies Ltd. communicate different directives for the food-production industry while placing the future of food and consumer health squarely on the farmer’s shoulder. Both recently spoke at the Canadian Food Summit in Toronto, a gathering of many of the food-related interest groups and hosted by the Conference Board of Canada. In reference to food producers, a.k.a. farmers, Westin was emphatic that industry had a “responsibility to be more ambitious.” In this context, he was speaking to the local food movement as well as industrialized agriculture. It was clear that his vision of the future included small holdings when he said: “We must maintain global competitiveness while fostering an environment that keeps small farms and manufacturers viable.” McCain had a different take on the future of food-production systems in Canada. He made it clear that “small producers would not feed the world.” He went on to explain what that meant for Canada. “It means that many people in the western world are just going to have to get comfortable with larger farms and larger food companies. As much as they (the people) need food that is healthy and nutritious, they need food they can afford.” The common thread was that farmers would carry the responsibility for affordable and safe food. Missing was a co-operative link between food, farming and health. There was little comfort in the fact that we immediately need an abundance of food which will translate into a 41 per cent increase in land for crop and animal protein. This feels burdensome as we face the mountain of need without a road map or gear for the climb. In this Toronto meeting, the lack of invited contribution by the producers of food was noticeably absent as that attendance was less than one per cent. This speaks volumes in terms of risk for future food-policy direction. Without farmers at the table, the regulatory environment in which they are expected to perform will be staggering. The blaming of food for poor health and obesity, sickness, insecurity and environmental ruin is currently being placed squarely on farmers’ shoulders, especially those who produce food animals. With all of the speakers, any mention of personal responsibility or liability in regards to the preparation, distribution or over consumption of food was quickly dismissed. It was a weighty silence, one that can only be pierced with a firm collective voice from the producer as we engage fully towards future food policy. Food policy is not only agricultural in context but societal as well. Consumers have strong beliefs regarding what they eat, how it was produced and the environmen-

42 CATTLEMEN / MARCH 2012

tal footprint. They feel that farmers have an obligation toward ensuring that they get what they want, when they want it and at a price they can afford. The call for farmers to become more innovative was repeated throughout the conference by Weston, McCain and others. Jumping the gap of processing, manufacturing, distribution, storage and preparation made the solutions seem easy — simply enforce the entire food security mandate on farmers. It is this gap that we must collectively fill in a way that allows farmers to grow and prosper while ensuring the needs of society are met. If we allow the current thought process to morph, it will only impoverish farmers, even in a world of shortages and increased demand. Linking farming, food and health relies on innovation along the entire production and delivery chain. This means that everyone from geneticist to consumer carries independent responsibility for food safety, environmental sustainability, animal welfare, safe production systems, transportation, storage, preparation, marketing, education, trade and consumption. To fully appreciate the magnitude of this task, the discussion table must be not only inclusive, but round. The domestic supply of food is not exclusively ours to own but we can compete with imported product if we illuminate the dark valley of commercialization in Canada. Adding value for our farmers is not only important to them, it assures that processes are being implemented under some of the most stringent food-safety laws in the world and food additives can be controlled. Flexibility for all sectors of the food industry allows for response to demographic changes and again curbs the need for interdependence on food importation. Freeing up interprovincial trade ensures that commodities and products flow freely to the nearest point of value and increased inspection, not regulation, allows for assurance of quality and safety. Education in the schools about how to budget for food, cook food and eat food is an important component of food policy. If the food is sourced from the greater Toronto area or Saskatchewan is not as relevant as safety, nutrition and affordability. As Canadian farmers we control one of the five bread-baskets of the world and we are going to be called upon to increase food production, improve transportation systems and to take a broader view of global trade. This future is in our hands — the same hands with which we vote. Our federal and our foodie friends need to hear us and know we are a critical part of future food policy, ready to engage in the linkage between farms, food and health. — Brenda Schoepp Brenda Schoepp is a market analyst and the owner and author of BEEFLINK, a national beef cattle market newsletter. A professional speaker and industry market and research consultant, she ranches near Rimbey, Alta. Contact her at brenda. schoepp@cciwireless.ca or visit www.brendaschoepp.com. All rights reserved. 2012

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ASSOCIATIONS

CATTLE FEEDERS LOOK TO THE FUTURE

A conversation with the new chairman of the Alberta Cattle Feeders’ Association, Brent Chaffee

rent Chaffee’s introduction to the beef industry got off to a rocky start during the dawn of the post-BSE era after moving from California to Alberta in January of 2003 to join his wife’s family at Strangmuir Farms’ 24,000-head feedlot near Strathmore, where he now manages the feedlot and assists with the cropping operations. He tackled his new career head on, joining the board of the Alberta Cattle Feeders’ Association (ACFA) four years ago and serving as vice-chair for the past two years before taking on the lead role this January. Chaffee says he is looking forward to his term as chair with the beef industry poised to enter a period of greater stability. “Demand will be high for protein and beef offers a different eating experience that people enjoy,” he says. “The supply won’t be readily available because of the time it takes to raise beef compared to the time it takes to produce other proteins, such as chicken and pork.” He anticipates that ACFA’s activities this year will be geared toward implementing the five strategic priorities introduced by the board at the 2012 annual general meeting held in Lethbridge on January 18. The fivepoint plan calls for the association to work with partners to access and develop markets that maximize value for members; identify and advocate for research priorities that support the association’s vision and mission;

44 CATTLEMEN / MARCH 2012

enhance competitiveness by reducing regulatory burdens; build membership by delivering value; and preparing the board of directors to make a decision on the provincial checkoff in 2013. The fifth strategy is in reference to the agreement between the Alberta Beef Producers and the ACFA to revert to a non-refundable national checkoff after provincial legislation made both the $1-per-head national checkoff and the $2-per-head provincial levy on cattle marketed in Alberta refundable. The agreement expires in 2013 unless both parties agree to extend it. Chaffee says labour will once again become a major issue for the feedlot sector as the economy recovers. “It’s best to be able to hire Canadians who want to work in agriculture, but it can be necessary to hire temporary foreign workers from time to time,” he explains. “The problem has been that it requires three to nine months of lead time, depending on the paperwork, so it would be helpful if people screened as temporary foreign workers could stay longer than a year or two on their work permits before having to renew them. A total of four years is allowed for low-skill workers before they have to leave for four years. This would reduce the cost, time and effort to retrain new workers and increase our efficiencies.” During the past year, the ACFA and the National Cattle Feeders’ Association (NCFA) demonstrated the need for and attained an extension of the

work permit from one year to two years as had been the policy in the past. The associations will continue their discussions with the ministers of Human Resources and Skills Development Canada and Citizenship and Immigration Canada aimed at further adapting the temporary foreign worker program to the needs of the feedlot sector. For instance, cattle-handling skills may be a higher priority than language skills for many feedlot owners. Market access is an ongoing priority. Now that Korea has opened up, Chaffee says the ACFA will continue to work toward improving access to European Union and Asian countries. The NCFA, with provincial members from British Columbia through Quebec, is the cattle feeders’ national lobby group, while the provincial feeder associations carry out the groundwork with the provincial ministers so that they can be informed proponents of the feeders’ position in discussions with the federal ministers. The NCFA and ACFA share office space in Calgary, with Bryan Walton serving double duty as CEO of the ACFA and general manager of the NCFA. Pamela Bennett of Toronto has been recruited as a communications specialist for both associations. Regulatory burdens tend to be issues, such as veterinary pharmaceutical regulations, that affect the competitiveness of the Canadian beef industry, Chaffee explains. The need to harmonize Canada’s veterinary drug protocols www.canadiancattlemen.ca

with those of the U.S. has been a standing project for many livestock organizations and round table groups. The NCFA is currently looking at the Pesticide Management Regulatory Agency framework as a possible model. On the animal welfare front, Chaffee says cattle feeders realize the importance of informing consumers about animal health and safety in a proactive manner. Alberta is in somewhat of a unique situation in that beef production is so engrained in the province’s heritage that even though people are further removed from the farm, they still hear about it regularly. “Producers still have to be on top of knowing what the best-management practices are for the industry at the time,” he adds. “Supporting frontline research to keep our transportation code and beef production codes updated shows our industry partners that we care.” Chaffee offers a unique skill set with a degree in chemical engineering, seven years of experience in research and development focusing on remediation services for the oil and gas industry and another five years as process engineer for an adhesives company. The research and development position involved knowledge of excavation, construction and environmental aspects to manage consultants in the cleanup of service stations and bulk plants for redevelopment. Overseeing batch processes for high-value resins and precious metals gave him experience in batch mixing systems, quality control, managing trials, troubleshooting, customer relations and managing people. All are skills that apply to agriculture. “For example, like the processing company, at the feedlot we are producing a product, but it’s a living product, so weather effects are a big factor for production and logistics, but like the construction situation, logistically, we can’t necessarily know what we will be doing the next day, so we have to be able to adjust on the fly to stay efficient,” he explains. All producers who take on leadership roles with industry associations know how challenging it can be to take time away from their own businesses to attend meetings and deal with industry matters. Chaffee appreciates support on the home front from the owner, Rick Thiessen, two experienced supervisors and a competent staff, as well as the valuable role that CEO Bryan Walwww.canadiancattlemen.ca

ton fulfills for the ACFA board when members are tied up with day-to-day operations at home. Strangmuir Farms takes its name from Major General Thomas Bland Strange who, in 1884, established MCC Ranch, not far from where the Thiessen farm is today. Nearly a century later, in 1980, the Thiessen family began constructing one of the first feedlots in Alberta to be built specifi-

cally as a cattle-feeding operation with the drainage sculpted into the plan. Today, the farm purchases stock from across Western Canada, mainly through auction markets and occasionally directly from cow-calf producers when the logistics work out. The farm has approximately 3,200 cultivated acres to grow wheat, barley and/or oat silage for the feedlot operation. C — Debbie Furber

Cattlemen / March 2012 45

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Travis Toews is president of the Canadian Cattlemen’s Association

r e p o r t s

s I write this article from Beijing, I’m pleased to report that on this trip, the Prime Minister announced that China has reopened for Canadian beef tallow for industrial use. The Chinese tallow market is expected to be worth $50 million to the Canadian beef industry. As well, an agreement was signed to immediately start negotiations on bonein beef and offal from cattle under 30 months (UTM) of age. This market opening as well as the Korean market, which in January finally opened to Canadian beef from UTM cattle, is likely to add value to every steer and heifer we sell in Canada. As this will be my last column as president of the Canadian Cattlemen’s Association (CCA), I will take the liberty of departing from the usual industry issues update and instead share with you some general industry observations I’ve made over the last few years. Throughout the generations, the Canadian cattle industry has been dominated by folks who place a high value on independence. The ability to manage one’s own affairs for better or for worse, and the opportunity to be out on the land without anyone, including governments, interfering with one’s decisions, made the cattle industry attractive to independent folks. Businesses flourished and withered based on the market, the weather, and the individual’s ability to competently manage with uncertainty. The loss of virtually all of Canada’s beef and cattle market access, leading to the economic losses incurred following the discovery of BSE in 2003, resulted in some short-term government involvement and programming designed to keep the industry core intact. This short-term public investment did not come without a cost. The cost was some loss of independence, both in the attitudes of producers and in the actions of some governments. To varying degrees, governments, particularly provincial, began to take on the responsibility of “fixing” the industry. Surprisingly many producers and producer groups that had historically defended our freedoms, were okay with this approach. In fact, for many producers, it seemed all too easy to call for government intervention for every economic challenge and perceived market power imbalance. While governments play an important role in areas such as food safety, animal health, research, and market access, I believe the industry will comparably fail if we leave it to government to chart our course. If we are to maximize the tremendous opportunity in front of our industry, we need to ensure we remain industry led as well as market driven. I must say, on the federal front, Agriculture and Agri-Food Minister Gerry Ritz has demonstrated a clear understanding of where government responsibility ends and individual (industry) responsibility begins. This

48 Cattlemen / March 2012

by Travis Toews

understanding has resulted in a very constructive relationship between the CCA and the minister, and has been instrumental in achieving success on a number of issues. To remain innovative, nimble, right sized, and competitive, we must remain an industry that is market driven. Many in the industry tend to be market believers in good times, but question its function during periods of contraction. From my vantage point, market signals are vitally instructive in both times of growth and contraction. During the difficult times following BSE, many claimed the market was “broken.” However, in hindsight, the market was working correctly during those difficult times. Poor returns slowed production, even before the cow sell-off began in 2006, as more feeders went to grass for longer periods of time. Substantial profitability in the packing sector attracted investment, and Canadian processing capacity grew by close to 40 per cent. The cow-calf operations that remained intact during those years tended to be the most competitive, and as a whole, we have emerged from that time a more competitive industry. At the CCA, our focus and strategy has been simple. We must ensure that the cattle and beef industry in Canada has the most competitive business environment possible, relative to our global competitors. A competitive business environment includes competitive market access to every major beef-importing nation around the world. It includes an efficient, competent regulatory environment, competitive access to production technologies, and competitive access to capital and labour. I’m convinced that the entrepreneurial spirit is alive and well in our industry, and that cattle producers will adjust their operation to the market signals of the day. Far be it from me to decide how large our Canadian industry should be, or the structural path individual participants need to pursue. The reality is that our industry won’t look identical from operation to operation. Some smaller nimble operations may participate in a natural or local food program, while some producers will choose to align with a vertical supply chain. Many will thrive in our high-throughtput, high-value commodity system, where each day our efficient world-class processors send each product they produce to the highest bidder in the world. The opportunity in front of the Canadian cattle industry is incredible. Global cattle and beef supplies are tight, while global demand is growing. We are making progress on a number of key areas of competitiveness, and young people are again interested in this great industry. Let’s ensure we remain an industry where we value our freedom, take responsibility for our decisions, and let the market guide our direction. www.canadiancattlemen.ca

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by Steve Kay

Plant plans ignore reality A North American view of the meat industry. Steve Kay is publisher and editor of Cattle Buyers Weekly

o you remember how many new beef People should be leery. Cattle supplies are plants were planned in Canada after declining in the region. Iowa had 1.3 million BSE struck in 2003? My records cattle on feed on January 1 in all feedlots, down show at least six plans were develnearly six per cent from a year earlier. Far fewer oped, all in the name of Canada becoming cattle are being fed by Corn Belt farmer-feeders “self-sufficient” in beef processing. The notion and there’s nothing to suggest they will feed made no economic sense. But that didn’t stop more cattle this year, especially if the price of at least two or three of those plants being corn remains high. built and opened. Remember Ranchers Beef The shrinking national herd means steer Ltd. in Balzac, Alta.? It didn’t last long. Then and heifer slaughter will likely decline 1.5 per there’s Atlantic Tender Beef that stays open cent this year from 2011. This will make comonly because the P.E.I. government continues petition for cattle even more intense among to prop it up financially. long-established packers. The Aberdeen and I’m all for investment in new plants because Tama plants, if they open, will only be able to it gives producers more marketing options. But buy cattle by bidding them away from other that investment has to be backed by a viable packers, i.e., pay more than anyone else. But business plan and the recognition of certain higher cattle costs means the plants will have facts. Right now in the U.S., there are plans to sell the beef at a premium. That’s impossible that have ignored the obvious. The North to do in a plant’s startup phase. In fact, a new American cattle herd is shrinking not growing. entrant has to sell its beef at a discount to buy The U.S. herd is below its way into the mar91 million head, its ket and to account lowest level since 1952. for the lesser-quality Higher cattle costs mean So I wonder where products that startthose folk who plan to ups produce because plants have to sell their open plants think they of inexperienced line will get cattle from. A workers. beef at a premium. In fact, new plant has been in All this makes a new entrant has to sell the works for more than plans for a new $100 five years in Aberdeen, million, multi-spebeef at a discount to buy S.D. Northern Beef cies meat processing Packers has spent in plant in west-central its way into the market excess of $70 million Nevada even more to build the plant and removed from reality. reports keep suggesting it is closer to opening. Walker River Meat Processing claims it will The plant will supposedly have the capacity to break ground this spring on a 300,000-square process 1,500 head per day. foot facility. When operating at full capacity, There are also plans to reopen a beef prothe plant is expected to process up to 2,000 cessing plant in Tama, Iowa, with a checkered cattle, 2,500 pigs and 1,000 sheep and goats history of closures. The former Tama Meat per day, says CEO Vincent Estell. Estell, who Packing plant operated most recently as Iowa is Canadian, seems unaware that multi-species Quality Beef in 2003-04. It has been shuttered plants went out of fashion 20 years ago and since then. Now a Nebraska-based investment that U.S. cattle numbers are at their lowest level group says it will reopen the plant this June. It in 60 years. plans to begin with a custom kill of 50 to 80 head per day and expand to 800 per day. Tama Cattle Buyers Weekly covers the North American meat Mayor Dan Zimmerman says people in his and livestock industry. For subscription information, town are happy but they’re also a little leery contact Steve Kay at P.O. Box 2533, Petaluma, because the plant has been opened and closed CA 94953, or at 707-765-1725, or go to www. so many times. cattlebuyersweekly.com.

50 Cattlemen / March 2012

www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

A winning ranch formula:

Cut costs, add value, build marketing integrity The McGrath family ranch is 105 years old and heading for another century

This is the kind of ranch story Canada’s beef industry likes. A young family with heritage ranching roots and a clear energy about the opportunity to build a business and a family life around cows and grass. Round Rock Ranching near Vermilion, in Northeastern Alberta has a very clear vision: ‘Producing the best beef in a better world.’ “We like to say we have a kinship with the land,” says Sean McGrath, the fifth generation to live on this land, and young father of the sixth. “In simple business terms we focus on the cow side,” he explains. “We watch costs. If we can do something for

less money, that’s clearly an objective. But we’re also concerned about value added, trying to make every calf worth more. That’s through our genetics, our vaccination and herd health program and our management program. Everything ties together.”

Grazing to cut costs A cornerstone of the ranch is its advanced grazing system. Built on nearly year-round grazing, it’s designed to aggressively cut feeding costs for the 200-cow herd. “Our goal is to feed cows as little as possible. More than 45 days is considered strenuous.” Calves are weaned early, mid-October to mid-November. Cows graze native prairie into February. “They’ll put 100 to 150 pounds of weight on in that time,” says McGrath. “Then we’ll switch to swath grazing and eventually, in spring, to tame forage. “We don’t do mixed farming and 80 per cent of our land is native pasture. Our approach is pretty unusual for this area. We’re usually taking cows out to grass when everyone else is bringing theirs in.”

Customer first, value added Documented practices assists marketing efforts, says Sean McGrath of Round Rock Ranching.

“We try to make every calf worth more, but more than anything, we sell ourselves,” says McGrath. The cow herd is Angus. Younger animals are bred Angus and older cows

are bred Simmental. The ranch markets grass finished beef, feeder calves, F1 heifers and grass cattle. “Our rule is we don’t sell weaned calves.” Customers first is the marketing mentality and a big part of that is being able to document management practices. The operation is audited under the Verified Beef Production (VBP) program to ensure animal and human health wellbeing. The ranch is also actively involved with several range health and environmental sustainability programs. Calves are all age verified. All cows have DNA records, and all vaccination and medical records are documented and VBP protocols followed. “From a marketing and documentation of integrity, it’s all there,” says McGrath. “We’re quite comfortable saying to any of our grass-fed beef customers that if they would like to come in and look at our system and pick a calf, we will show them the records on our computer, so they will see what we are doing.

VBP aids marketing “We use the VBP record information a lot for marketing,” adds McGrath. “If we sell a load of calves, we’ll contact the potential buyers well ahead of time and let them know about the cattle. They’ll know that they have been vaccinated and that there are records for all of that.”

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RESEARCH LAND BOUGHT FOR U OF S BEEF FACILITY The University of Saskatchewan’s new Beef Cattle Research and Teaching Facility took one step closer to reality with the recent purchase of land near Clavet, about 25 minutes southeast of Saskatoon, but it will still be some time before the first spade hits the ground. Besides a teaching facility, it will also be a feedlot so it must first pass an environmental audit, then a public review Dean Mary Buhr and finally gain the approval of the university, says College of Agriculture and Bioresources dean Mary Buhr. In the meantime, the university must raise the money to build the new stateof-the-art facility. Applications have Continued on page 54

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NEWS ROUNDUP Continued from page 52

already been submitted for federal funding and the hunt is on for more donors. Once the environmental approvals are in place, the design will be finalized for approval by the university. The new facility will replace the present 750-head university feedlot constructed in 1963, which is now well within the city limits of Saskatoon. Initial planning began in 2007 with the conceptual design for a modern research and teaching centre. “We will continue with our research and training at the existing facility. There won’t be a slowdown. Once the new facility is ready, we will move in and then close the old one,” says Buhr. The process is complicated by the fact the university is also constructing a new dairy barn on campus along with substantial upgrades to all of its plant growth units. Despite it all Buhr remains confident the beef facility will go ahead. “People know the importance of agriculture and the importance of training our

students right. After all, that’s what it’s really all about.”

PASTURE CAN YOU FLY GRASS SEED ONTO WASHED OUT PASTURES? After last spring’s washouts few Prairie cowboys will be taking the weather for granted this spring but the people at the Assiniboine Watershed Stewardship Association in Yorkton,

Summerfallow Sept. 19, 2011. Harrowed area on left, unharrowed area on right.

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

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

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

# of head

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

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

 c) 45 to 54

54 CATTLEMEN / MARCH 2012

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

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

Sask., wanted to be prepared for the worst. After so many pastures and crops were washed away in Saskatchewan last year, the association decided to test the idea of reseeding pastures by air following a deluge. In June they flew a Hay Plus II mixture (Algonquin alfalfa, Rambler alfalfa, Fleet meadow brome, tall fescue and timothy) at a rate of 14 pounds per acre onto 40 acres of canola stubble and 55 acres of summerfallow. After seeding they harrowed all of the canola but only 10 acres of the summerfallow to gain a check strip. Unfortunately, spreading forage seed from a plane presented several headaches. The plane’s feeder-chain was unable to deliver the ultra-light needle-shaped seed at a high enough rate to meet the seeding requirement, so the plane had to make multiple passes in order to get enough seed on the ground. As a result, the initial price, an economical $9 per acre, quickly swelled to an impractical $27. Using oats as a cover-crop carrier may have improved the outflow but limited the space in the plane’s seed hopper, again requiring more trips. Still, it might not have made any

Regular Columns News Roundup Purely Purebred The Markets

Market Talk Sales and Events

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

www.canadiancattlemen.ca

difference since there was very little establishment on the unharrowed acres other than green foxtail even though there was very little weed growth at the time of seeding. They got much better seed to soil contact on the acres that were harrowed but that sort of defeated the purpose. If a field is dry enough to take the harrows it is also dry enough to take a seed drill or air seeder and harrows. So forget about the airplane for pastures if those rain clouds start swirling again this spring. More details can be found on the association’s website at www.assiniboinewatershed.com. Search for aerial seeding.

PACKERS OLYMEL OUT AS POTENTIAL PARTNER FOR COLBEX PLANT Quebec poultry and pork packing giant Olymel has decided to walk away from talks aimed at a possible partnership stake in a major producer-owned cull cow slaughter facility. The company decided late last month to call a halt to discussions with the provincial government and the Federation des producteurs de bovins du Quebec, owner of the Levinoff-Colbex beef plant at St-

Cyrille-de-Wendover, northeast of Drummondville. The cattle producers’ organization has owned the plant since 2006 and had been in talks with Olymel since last spring, according to Olymel spokesman Richard Vigneault. St-Hyacinthe-based Olymel had requirements that would need to be met for it to take a role in the facility, and those conditions have not been met, he said in a brief interview. He declined to elaborate on the conditions that would satisfy the company. The Colbex plant is currently operated by Groupe Cola, its previous ownContinued on page 56

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…has never been easier. AgSearch.com is your online guide to regional and national businesses serving the agricultural community. AgSearch.com provides you with a comprehensive set of searchable listings as well as useful information on agricultural products and services. Plus ag business location and contact details — you’ll find it all together at

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NEWS ROUNDUP Continued from page 55

ers, who still handle its day-to-day management such as sales, marketing and human resources, on behalf of the FPBQ. La Terre de chez nous, the news organ of Quebec’s general farm group, the Union des producteurs agricoles, quoted an FPBQ official as saying the cattle producers are now in talks with a new potential partner. According to the report from La terre’s Julie Mercier, a new investor for the plant is a condition for continued support from the province, which guarantees the plant’s credit line.

TRADE CHINA HICCUP Everyone was pretty excited last month by Prime Minister Stephen Harper’s announced resumption of Canadian beef tallow exports to China. According to the Canadian Cattlemen’s Association China spent $31 million importing tallow from Canada in 2002 before BSE closed us down. Since then China’s imports of tallow for soaps, cosmetics, waxes, biodiesel and lubricants has grown to $400 million a year. The Canadian industry expects the Chinese market for Canadian beef and tallow to exceed $110 million once full

West Country shorthorn Bull sale

26th AnnuAl Edition

Date: Sat. April 14, 2012 Place: Eionmor Stock Farm at the Morison Farm Time: Viewing of the Sale Offering 10:00a.m.

Consignors:

Dinner @ noon, Sale @ 1:00 p.m.

Downsview Shorthorns

On offer 30 yearling bulls, and 30 open yearling heifers

Willow Butte Cattle Co.

At the farm 26 miles west of Innisfail on Highway 54, watch for signs

Shepalta Shorthorns

Eionmor Stock Farm

www.shorthorn.ca

or for more info, call Ken @ 403-728-3825 sale day: 403-877-3293 . 587-876-2544 56 CATTLEMEN / MARCH 2012

www.canadiancattlemen.ca

access is achieved. The big question is when will China really open for business in Canadian beef. Canada and China signed an arrangement in June 2010 that was to grant access for deboned beef from cattle under30-months of age and industrial tallow. Up to now China has not been importing any beef or beef products but it appears tallow will finally start to move. Work is continuing to try and open this market up to other beef products. A recent posting by the Alberta Beef Producers gives us an inkling as to one of the key sticking points in these discussions. Since China and Taiwan do not have maximum residue limits (MRLs) for beta-adrenergic agonists, such as ractopamine, they do not allow any beef or pork products into the country that have residues of the leanness-enhancing drugs. Beta agonists contain small molecules that increase muscle protein growth and improve feed efficiency. In Canada, certain beta agonists are approved for use in confined finishing beef cattle feeds. These products have been banned for use in hog and cattle feeds in China and Taiwan. Recently, two supermarkets in Taipei, Taiwan pulled U.S. beef products from their stores because ractopamine was detected in the product samples. Taipei’s health department recalled and destroyed other contaminated products from the importer and threatened fines over $200,000 for violating food regulations there. This can be quite a deterrent to beef exports placing product into the region. Although ractopamine is allowed in feed in over 20 coun-

Turihaua Crumble -reference sire

- his sons sell / spring 2012 by private treaty

www.nerbasbrosangus.com & www.nerbasbrosangus. blogspot.com Shellmouth, MB CANADA 204-564-2540

Continued on page 58

y d d a D r u o Y s Who’ Bull Sale 9th Annual

Thursday April 5, 2012

Saskatoon Livestock Sales, Saskatoon, SK

Selling 50 Shorthorn bulls, yearlings and two year olds. The top cut from over 400 purebred Shorthorn cows. Thick, rugged BEEF BULLS that are bred to handle the harsh conditions of Western Canada. Also on offer – a select group of donor, flush and embryo lots.

Saskvalley Stock Farm Carl Lehmann • 306-232-5212 cmlehmann@sasktel.net www.saskvalleyshorthorns.com

Bell M Farms

Richard Moellenbeck • 306-287-3420 rmoellenbeck@bogend.ca • www.bellmfarms.com

Muridale Shorthorn

For more information or a catalogue contact:

Scot Muri • 306-553-2244 sjmuri@sasktel.net • www.muridale.com

Sale bull videos at www.youtube.com/whosyourdaddybull www.canadiancattlemen.ca

Catalogue online at all three websites CATTLEMEN / MARCH 2012 57

“A Better Way to Manage your Livestock Business”

NEWS ROUNDUP Continued from page 57

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tries, including Canada and the U.S., it is banned in Taiwan, China, the European Union and more than 100 other countries. In Canada the feed additive is fed to about 50 per cent of finished cattle going into the market without any withdrawal period required and products from those animals are not segregated at the plant. In the U.S. the maximum residue limits (MRLs) of ractopamine permitted in beef products is 30 parts per billion (ppb) and in Canada and Japan the MRLs are 10 ppb. China and Taiwan presently have zero-tolerance levels for the drug and any trace of the material carries an automatic product recall due to the lack of an MRL. There has been some pressure in Taiwan by the U.S. to follow a sciencebased approach for any residues and health impacts in changing its regulation to meeting a minimum tolerance similar to the system used in Canada, U.S. and Japan. The world reference standard goes to the guidelines of the science-based United Nations Codex Alimentarius Commission that is part of the Food and Agriculture Organization (FAO) and the World Health Organization

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he secret is the Agrowdrill fitted with the Inverted Tee Boot. It creates minimum disturbance of the soil, creates a moisture trap to enhance seed germination and survival. Accurate seed placement ensures quick germination and vigor.Dry sowing into hard soil is possible. Zero soil disturbance between rows means minimal weed germination. Keeps top 2 inches of soil intact with direct drill method. Penetrates thick sod with selfaligning coulter in front of the Inverted Tee Boot means maximum planted seed germination.

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(WHO). Their technical committee made recommendations in 2011 to support ractopamine MRLs of 10 ppb in cattle muscle and fat tissues for human food consumption, matching the Canadian standard. However, the Commission has so far not adopted the technical recommendation for ractopamine primarily because of opposition led by the European Union (EU). Scientists from the EU are also on the technical committee that approved the recommendation but the EU representation on the Commission opposed the MRLs adoption. Chinaâ&#x20AC;&#x2122;s trade announcement makes it seem as if this market has opened up somewhat, but the ractopamine regulation continues to be in place. A release in December 2011 from the Chinese ministries of industry and information technology, agriculture, commerce and health as well as the state administration for industry and commerce, general administration of quality supervision, inspection and quarantine jointly published a ban of any production and marketing of the product. So not only can it not be used there, it cannot be manufactured in China to be shipped abroad. The Government of Canada is working to resolve market access for beef products in China, including adoption of UN Codex standards for ractopamine residue. At a working level, the Canadian Embassy in China has been dealing with authorities there to be able to handle each violation on a case-by-case basis to limit the number of delistings that could occur. At a policy level, Canadian government authorities have been making high-level representations urging China to establish MRLs for ractopamine based on science. If changes to Chinese and Taiwanese ractopamine standards could be achieved this might help increase some Canadian beef meat movement to the region. C

www.canadiancattlemen.ca

Rivercrest - Valleymere 9 th Annual

Spady Bull Sale 100 Black Angus Bulls 80 Commercial Heifers

Wednesday - April 11th - 2012

Free Delivery or $50 Credit

Volume Buyer Incentive

Bulls Semen Tested and Immunized for Foot Rot

Black Angus has been the foundation of the Spady program for over 70 years. Performance matters. Thick, stylish, ranch-raised bulls bred with longevity and hardiness to roam the Battle River Hills. Guaranteed to get the job done.

Sale at 1:30pm

at the Rivercrest Angus Ranch Located in the Battle River Valley near Alliance, Alberta

Craig Spady 403-740-4978 Travis Spady 780-879-2298

www.rivercrestangus.com Tom Spady 780-879-2180 Brian Spady 780-879-2110

CATTLEMEN / MARCH 2012 59

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

Deborah WILSON

Charolais at Moose Jaw…and this is pretty much the way he looked when we first met him through the Charolais industry. As you mentioned he is still active in the livestock industry and has made many notable contributions over the years. Many of you identified Jim Leachman, remembering him judging up here in Canada and managing Red Roundup for many years.

◆ On Feb. 4, Fort Worth Stock Show

◆ I have a new picture for you —

check out the hat and sports jacket on the fellow on the left. This picture was taken in the late ’70s. Can you identify both of these people?

◆ The pictures in the Jan. and Feb.

issues of Cattlemen were identified by more people than I could mention. Thank-you to everyone to who called or emailed me. The best call I had was Bob Blacklock calling to identify Doug Howe. He told me the only thing missing was Doug’s “fur” cowboy hat. FUR COWBOY HAT? One other was Audrey Horkoff of Kamsack, Sask. “Good morning Deb. You’re right this pic was easy… at least for some of us other “Old Timers”… Doug Howe of White Cap

saw a record price for the Grand Champion Steer — $230,000, shown by Cuatro Schuaer. The steer was listed as a European cross but he sure looks like a Charolais cross to me, but what do I know? The steer weighed 1,327 pounds and was purchased by Richard Wallrath of Champion Ranch. At $230,000 the steer brought $173.19 per pound! The young man who showed him plans to use the money to go to college.

◆ Eileen Grace Lamont passed away Jan. 18, in Salmon Arm, B.C. Eileen bought the first black and white lineback heifer from Mary Lindsay, near Greenstreet, Sask., which with more Lindsay cows formed the nucleus of the Speckle Park beef breed when crossed with Lamont Black Angus bulls. On January 24, Bill Lamont, Eileen’s husband quietly observed his 90th birthday with a small gathering. ◆ The Canadian Limousin Association AGM is scheduled for Friday, July 13 in Olds, Alta. The meeting is in conjunction with the National Junior Limousin

Conference. There are multi events going on in Olds that week, therefore accommodations will be limited so members were being encouraged to book early into the Ramada Inn at 403-507-8349. Darby Cochrane and Stan Skeels have completed two full terms on the CLA directors and will not be running again, however Brian Lee is eligible.

◆ Gelbvieh Breeders Davidson Gelbvieh and Lonesome Dove Ranch of Ponteix, Sask. recently travelled to the National Gelbvieh Show held during the National Western Stock Show in Denver Colorado. They were pleased to win Reserve

Junior Champion Bull with DVE Davidson Jumpstart 44U. There was over 216 head of Gelbvieh competing.

◆ Ja-Lyn Farms Ltd. of McAuley was named the Manitoba Angus Commercial Producer of 2011. This is a family oriented farm, owned and operated by Barry and Glenn Lowes and their wives Brenda and Shelley. Barry and Brenda’s boys Justin and Nevin also work full time on the farm along with their families. Glenn and Shelley’s children, Brooke and Stacey, also

sales Lazy S Ranch Black Angus Dispersal Sale Photo: courtesy Helge By

Mayerthorpe, Alta., January 27, 2012 59 26 12 97 59

Bred females, av. $2,675 Open heifers, av. $2,015 Beefmaker females, av. $ 2,850 Total, av. 2,520 Commercial cows, av. $2,080

Lazy S Ranch Bull Power 2012 Mayerthorpe, Alta., January 28, 2012

The Manitoba Charolais Association board of directors, back row (l-r): Ian Milliken, Reston; Jeff Cavers, La Riviere; Doug Hunter, Roblin; Jim Olson, Portage la Prairie; Hans Myhre, Dauphin; Kevin Stebeleski, Oakburn; Rob Gilliland, Virden; Kerri Hinsburg, Rapid City. Front row (l-r): Rae Olson, secretar y/treasurer, Portage la Prairie; Ernie Bayduza, first vice-president, Dauphin; Harr y Airey, president, Rivers; Andre Steppler, second vice-president), Miami; Campbell Forsyth, CCA director, Eriksdale. 60 Cattlemen / March 2012

6 2-year-old bulls, av. $6,425 21 Black Angus yearlings, av. $4,276 14 Red Angus yearlings, av. $4,039 12 Red yearling Beefmakers, av. $5,200 26 Black yearling Beefmakers, av. $4,740 52 Red yearling Simmentals, av. $5,576 64 Black yearling Simmentals, av. $5,859 195 Total, av. $5,310 High selling bull — Lazy S Black Knockout 285Y sold to R Plus Simmentals, Estevan, Sask. for $16,000

www.canadiancattlemen.ca

work on the farm in the summer. James and Evelyn Lowes started the farm in 1962, with about 400 acres and a few cows. Over the past 50 years the farm has grown to about 8,000 acres of grain, hay, and pasture land, a 3,500-head feedlot, 1,400 cow calf pairs, as well as 300-400 breeding heifers. The cows are mainly Angus or Angus Simmental cross as mainly Black Angus bulls have been used for the last 20 years but a few black Simmental bulls were added in the last three years. They have around 70 bulls in the bull pen. Glenn and Barry find two-year olds work best in their operation but it is quite limited as to where they can buy virgin two-year olds so they do purchase some yearlings. They try to buy all purebred bulls as close to home as possible, mostly from breeders in Western Manitoba or Eastern Saskatchewan. They have been breeding 300-400 black heifers each year, for the last few years.

Is Tenderness Predictable? We think so. By using a combination of three carcass evaluation tools over the past number of years including DNA, Ultrasound, and Linear measuring, we have proven to ourselves that a wide variety of carcass traits are heritable including Tenderness.

◆ “The Red Angus Show at the National Western Stock

Show in Denver must be one of the largest in 2012 with just a few shy of 300 head. And the quality and presentation is tremendous! It is very exciting to watch our Canadians be so competitive and to see how profoundly our genetics are impacting our American friends,” said Rob Smith, CEO of the Canadian Angus Association.

We chose a high measuring herd sire in all three categories including a high DNA score for Tenderness. This sire’s first set of two year old bulls in 2011 had excellent results in their Ultrasound and linear measurements and the DNA Tenderness scores were amazing. 5 of his 8 sons scored 9 out of 10 on the DNA Tenderness marker and the other 3 where above all breed averages with scores of 7.

◆ For the first time in their history, Six Mile Red Angus from

12th Annual Practical Innovators Bull Sale Saturday, April 14th 1:00 p.m. Olds College, Olds Alberta “Real” Canadian Welsh Black Beef on a Bun at Noon Sale will be broadcast live on www.teamauctionsales.com

Bull Testing works – and it helps if you use the right tests. Quality matters.

Fir Mountain, Sask., were the Premier Breeder and Premier Exhibitor of the American National Red Angus Show. What

Contact Randy Kaiser – (403) 333-6653 kaiser.randy@gmail.com • www.kaisercelticcattle.com

Cwft Cttlemn Ad_Layout 1 1/10/12 3:24 PM Continued Page 1 on page 62

RED & BLACK ANGUS BULL & COMMERCIAL FEMALE SALE APRIL 5

at the farm

Standard, AB Lunch: 12:00 noon • SALe: 1:00 pm p Sharp p

Thursday •

32 Years breeding Reputation angus Cattle backed by a “No b.s.” guarantee!!

125

Beefy Red & Black Angus Two Year old & Yearling Bulls

bulls on high roughage ration - ready to go to work!

Sale will be broadcast live via

140+ Commercial females

• 60 open Heifers • 40 Bred Heifers • 40 Young Cows

For more information, log in to: www.teamauctionsales.com

Young cows will have calves at foot or will be calving april/May

Catalogue & Video Clips of all sale bulls online at www.crowfootcattle.com SSale Sa le Co C Consultant: nsultant: Douglas J. Henderson & Assoc. Ltd. Cell: 403-350-8541 Ph: 403-782-3888 djhenderson@platinum.ca Website: www.hendersoncattle.com www.canadiancattlemen.ca

CRoWfooT CATTLe CAT A TLe Co. AT

DALLAS & SAnDRA JenSen 403-644-2165 / Cell 403-934-7597 crowfoot@myipplus.net

CRoWfooT VALLeY V LLeY RAnCH VA R nCH RA CHRiS & JennifeR JenSen 403-644-3840 / Cell 403-901-5045 cjjensen@myipplus.net

www.crowfootcattle.com

CATTLEMEN / MARCH 2012 61

Jaz Poco Goldun Blue 1994 AQHA Grulla Stallion

By Little Steel Dust (Grandson of Poco Bueno) and out of a mare by Pocos Gray Comet (Grandson of Poco Bueno) Homozygous Dun - ALL his foals WILL be red dun, dun or grulla, regardless of the dam’s color!

Continued from page 61

Jaz Poco Goldun Blue

HERDA N/N GBED N/N 1994 AQHA Grulla Stallion

PSSM N/N By Little Steel Dust (Grandson of Poco Bueno) and out of a mare by Pocos Gray Comet (Grandson of Poco Bueno) Homozygous Dun - ALL his Registry foals WILLof beMerit red dun, AQHA dun or grulla, regardless of the dam’s color!

1994 AQHA Grulla Stallion (ROM) Reining By Little Steel Dust (Grandson of Poco Bueno) and of a IBHA Registry of Merit (ROM) Reining mare by Pocos Gray Comet (Grandson of Poco Bueno) HERDA N/N • GBED N/N • PSSM N/N AQHA Registry of Merit (ROM) Reining IBHA Registry of Merit (ROM) Reining

2001 Open Reining Circuit Champion

2000 Working Cow Horse Circuit

2001 Champion Open Reining Circuit Colorful Colorado

Champion Homozygous Dun - ALL his foals WILL 2001 beMHBHA red dun, Working Cow Horse First Place dun or grulla, regardless of the dam’s color! 2000 NRHA Limited Open Res.

1998 MHBHA Reining Champion

2001 MHBHA Working Cow Horse First Place

2000 NRHA Limited Open Res. Champion Sandhills Slide

1998 AQHA Junior Reining Colorful Colorado Circuit Champion

1998 IBHA Open Reining Colorful Colorado Circuit Champion 2000 NRHA Limited Open Res. Sandhills Slide NRHA Money Earner Champion High Desert Slide Champion

2012 Stallion Fee: $950 2012 Stallion Fee: $950 Standing At: Burwash Equine Services Ltd 403-242-1913 www.eslvet.ca

2000 NRHA Limited Open Res. America Fresh cooled or frozen shipped semen available anywhere in North

Champion High Desert Slide Standing At: Burwash Equine Services Ltd 2000 Working Cow• www.eslvet.ca Horse 403.242.1913 Circuit Champion ColorfulOwned By: Colorado Ryan Smith Search for Jaz Poco 1998 MHBHA Reining AB, Canada Champion, Goldun Blue for periodic 403.634.0042 Champion | 403.897.3787 exclusive Facebook offers championauctions@gmail.com 1998 AQHA Junior Reining Colorful Colorado Circuit Champion 1998 IBHA Open Reining Colorful Colorado Circuit Champion NRHA Money Earner

Owned By: Ryan Smith • Champion, AB Canada 403-634-0042 / 403-897-3787 www.fleetwoodfarms.com • ryan@fleetwoodfarms.com

Fresh cooled or frozen shipped semen available anywhere in North America

2012 Stallion $950 Search for JazFee: Poco Standing At: Burwash Equine Services Ltd 403.242.1913 Goldun Blue • www.eslvet.ca on Facebook! Owned By:

Search for Jaz Poco Goldun Blue for periodic exclusive Facebook offers

Ryan Smith Champion, AB, Canada 403.634.0042 403.897.3787 championauctions@gmail.com

Ima Bootscootin Lena

◆ The Manitoba Angus annual meeting was held on Jan. 7

2004 ApHC Registered Stallion Canadian Supreme Nominated LTE $15,860

at the Victoria Inn in Brandon along with the four other beef breeds. 2011 was a big year for the Manitoba board, hosting the national Angus annual meeting in June in Clear Lake and the National Angus Show in November at the Manitoba Livestock Expo. Canadian Angus president, David Bolduc and CEO Rob Smith reported that registrations were up for the breed in 2011, and that the CAA purchased land to build their new office. The Canadian Angus Rancher Endorsed program continues to grow and green tag sales were up 11 per cent in 2011. President Shawn Birmingham thanked retiring MMA directors: Ron Batho, Kent Topham and Doug Stamler for all their efforts over the years and their dedication to the breed.

Breeding Fees: $1,000 plus $250 booking fee Mare Care: $8/day wet; $6/day dry Live Foal Guarantee

Giberson Performance Horses Nev Giberson RR #4; Innisfail, AB 403-357-4888 email: n.giberson@xplornet.com www.gibersonperformancehorses.com

Sandy Ridge Stallion Station

Own son of Marthas Six Moons, the Nation’s #7 Leading Barrel Sire of the Decade! The Nation’s #1 Leading barrel sire of the Decade!!!! Standing:

Fast Moon Chic

an amazing accomplishment for Clayton, Corinne, Callie, Cade and Coy Gibson! But the news gets better, both Grand and Reserve Champion Bulls were Canadian. Red Lazy MC Eye Spy 64Y from Clint, Angela Laurie and Layne Morasch of Bassano, Alta. was the American National Champion Red Angus Bull, and the calf on the Gold and National Champion Red Angus Female, Red Six Mile Smokin Gun 133Y, was the Reserve Champion Bull. Congratulations to the Gibson family, especially Coy, who claims Smokin Gun as his own. Six Mile Red Angus also had the American National Red Angus Champion Female — Red Six Mile Countess 105Y was the Denver NWSS Grand Champion Female.

Hezgottabefamous, son of the Nation’s #1 Leading Barrel Sire of the Decade, Dash Ta Fame A Classic Guy, son of the Nation’s #2 Leading Barrel Sire of the Decade, Frenchmans Guy Crimson Jess, son of the Nation’s #1 Leading Race Sire of Money Earners, Mr Jess Perry Root Beers Boots, son of 1987 AHA Hi Pt Jr Working Cowhorse, Root Beer Doc Prime Time Chivato, by Dash to Chivato si96, sire offspring of $3,279,722 “All out of producing mares!!!”

Circle Bar Gray Gun

Pepinics Master

Circle Bar Gray Gun is sired by Playgun who is the Equi-Stat #9 Leading Cutting Sire and an NRCHA Leading Sire, siring the earners of over $6,900,000

Pepinics Master’s performing offspring have earned $550,000 in cutting, working cowhorse, reining & barrel racing (Equi-Stat)

PHOTO CREDIT: CHERYL SMYTHE PHOTOGRAPHY AND DESIGN

More Info: Doug & Carol Schaffer, Bassano, AB 403-641-2511 | www.sandyridge.ab.ca

◆ Manitoba Purebred Angus Producers for 2011 are Gerald and Wendy, Allan and Caroline and Cam and Kaitlyn Nykoliation of N7 Stock Farm of Crandall, Man. ◆ The Cattlemen’s Young Leaders (CYL) Development Pro-

gram has a new sporsor after UFA Co-operative Ltd. became a Foundation Partner by committing to donate $70,000 over three years to the program. UFA joins CYL partners the Alberta Livestock and Meat Agency (ALMA) and Cargill. Launched by the Canadian Cattlemen’s Association in 2010, CYL provides training and mentorship to young producers between 18 and 35 with an interest in taking a leadership role in the Canadain beef industry. C

Ed & Connie Masson Cadogan, AB Phone: 780-857-2254 Email: ranchboss@myterraranch.com www.myterraranch.com

Cimarron 20ft stock

BAR T5 TRAILERS

$16,995

5010 HST Cab w/ loader

29,995

C.N.T.

403-931-2212

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62 Cattlemen / March 2012

The Manitoba Angus Association board of directors 2012, front row (l-r): Lois McRae, Canadian director, Brandon; Naomi Best, Harding; Arlene Kirkpatrick, secretar y-treasurer, Brandon; Larissa Hamilton, Glenboro. Back row: Allan Nykoliation, Crandall; Shawn Birmingham, president, Brandon: Dan Van Steelandt, Melita; Robert Shwaluk, Shoal Lake, Bonnie Glasman, Russell; Dallas Johnston, vice-president, Brookdale. Missing Ken Williams, Oak Lake. www.canadiancattlemen.ca

The markets

Market Summary debbie mcmillin Fed Cattle The February fed market started weaker, with packers able to draw from contract cattle to satisfy the seasonally slower demand. Two weeks later a strong board and rising cutout values pushed U.S. fed prices up $4 to $5 and Canadian prices by $2 to average $112.61 per cwt or about $7 more than 2011. Basis levels in 2012 have been wide and disappointing which only got worse after the U.S. cash rally outpaced the Canadian response leaving us with an Alberta cash-to-cash basis of -15.44. That does not compare favourably to the -3.22 per cwt in the same week last year. The Alberta and Saskatchewan cattle-on-feed report on February 1 came in at 942,845 head, up three per cent from last year but still below the fiveyear average, which is what you would expect giving the smaller inventories of recent years. January placements, were up six per cent on the year and 17 per cent over the five-year average.

Fed exports to the first week of February were down again at 29,805, 38 per cent behind 2011, which was also sharply down from 2010. Fed slaughter has been slipping through the first six weeks of 2012. Steer slaughter was down three per cent at 152,379 head, heifers were down 16 per cent at 96,095 head.

Feeder Cattle Feeder cattle prices remained solid with good-quality light conditioned calves testing the top end of the ranges in the past month. Cattle headed for grasser-type programs saw some additional buyer demand. Steers 400-500 pounds increased $23 over the past seven weeks to average $197.10 at mid-February, 550-steers averaged $184, up $27.25 from a year ago. Over the past several weeks pressure experienced in the fed cattle cash market extended to the heavier feeder market as buyers factored in sluggish summer-marketing dates. Nevertheless 850-steers were able to reach an average $141.64 by mid month, down $2 from the end of January but still $21.72 above a year ago. The basis for 850-pound steers widened to -14.25 per cwt in by mid February. Year to date it is 14.10 under the U.S. compared to -7.56 in

Deb’s Outlook Fed Cattle In February the fed cattle market experienced smaller kills, larger carcass weights, negative packer margins and a wide basis however moving forward the seasonality for fed cattle prices and tighter front-end supplies should improve prices towards the end of the first quarter and the start of the second as retailers gear up for barbeque season.

Feeder Cattle January beef cattle inventory reports on both sides of the border show smaller beef herds than a year ago, which translates to lower feeder cattle supplies and eager buyers with pens to fill. The Jan. 1 Canadian report

www.canadiancattlemen.ca

2011. Exports of feeder cattle for the first five weeks of 2012 jumped 49 per cent year to year at 9,416 head in response to a shrinking U.S. cow herd and that country’s strong export sales picture.

Non-Fed Cattle Demand for trim and grinding meats continues to push up D1,2 cow prices. While all cow prices continue to rise, premiums have been seen on young grain fed cows. D1,2 cows in mid-February averaged $74.38 to a top of $80 compared to $69.29 last year. Bull prices finally picked up after a long steady spell, climbing $3.60 from the start of February to near $85 per cwt at mid-month. Through the first six weeks of 2012 cow slaughter was two per cent higher than a year ago at 65,485 head. Bull slaughter to date at 1,549 head is down 24 per cent on the year. To the end of the first week in February we exported 13,163 cows, 27 per cent fewer than last year. Bull exports totalled 3,566 head, up 26 per cent.

— Debbie McMillin

Debbie McMillin is a market analyst who ranches at Hanna, Alta.

More markets➤

suggests more heifers will be held back as replacement females squeezing overall feeder supplies even further. That coupled with the seasonal demand for grass cattle will add some pricing power to light feeder calves over the next few months. Top-cut replacement heifer packages should continue to fetch a premium. There is some seasonal downside for heavier feeders as they generally trend down moving into March, however a stronger fed market should limit the slippage.

Non-Fed Cattle Cow supplies will tighten over the next while as producers gear up for spring calving. Seasonally cow prices tend to climb into the second quarter. A shrinking cow herd coupled with strong demand for trim and grinding cuts should offer good support to cull stock pushing up spring prices. Cattlemen / march 2012 63

Break-even Prices on A-Grade Steers 130

ALBERTA

160

110

90 80

Steer Calves (500-600 lb.)

170

120

100

Market Prices

180

150

western Market Summary

140 130

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

120

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

145

ONTARIO

135

D1,2 Cows

125

115

105

95 85 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2012

Canfax weighted average price on A-Grade steers

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

Ontario 2011 Market Ontario prices based on a 50/50 east/west mix Summary O ntario

2012

2011

A lberta

Break-even price

2012

for steers on date sold

2012

2011

Kevin Grier2011

Market Summary (to February 11)

February 2012 prices* Alber ta Yearling steers (850 lb.)............... $128.07/cwt Barley................................................. 4.60/bu. Barley silage..................................... 57.50/ton Cost of gain (feed)........................... 61.97/cwt Cost of gain (all costs)..................... 87.18/cwt Fed steers...................................... 112.92/cwt Break-even (June 2012)................. 121.15/cwt Ontario Yearling steers (850 lb.)............... $138.50/cwt Corn silage....................................... 52.24/ton Grain corn........................................... 6.28/bu. Cost of gain (feed)........................... 93.88/cwt Cost of gain (all costs)................... 119.33/cwt Fed steers...................................... 122.46/cwt Break-even (August 2012)............. 130.57/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

64 Cattlemen / march 2012

2012 Total Canadian federally inspected slaughter................ 315,508 Average steer carcass weight............................................ 881 lb. Total U.S. slaughter.......................................................4,236,000

2011 338,072 856 lb. 4,483,000

Trade Summary EXPORTS 2011-12 Fed cattle to U.S. (to Jan. 8)............................................ 29,805 Feeder cattle and calves to U.S. (to Jan. 8)....................... 9,416 Dressed beef to U.S. (to December)..................... 551.04 mil.lbs Total dressed beef (to December)........................ 742.85 mil.lbs

2010-11 48,039 6,330 680.75 mil.lbs 898.43 mil.lbs

IMPORTS 2011 Slaughter cattle from U.S. (to December) ................................ 0 *Dressed beef from U.S. (to December).............. 385.81 mil.lbs *Dressed beef from Australia (to December)........... 22.00 mil.lbs *Dressed beef from New Zealand (to December)...... 54.10 mil.lbs *Dressed beef from Uruguay (to December)......... 13.31 mil.lbs

2010 0 289.67 mil.lbs 19.23 mil.lbs 49.78 mil.lbs 24.69 mil.lbs

Canadian Grades (to February 11, 2012) % of A grades AAA AA A Prime Total EAST WEST

+59% 16.4 31.5 1.6 0.1 49.6 Total graded 65,310 231,324

Yield â&#x20AC;&#x201C;53% Total 10.7 48.2 3.4 47.8 0.0 1.7 0.5 0.9 14.6 Total A grade 98.6% Total ungraded % carcass basis 18,874 56.8% 0 84.0%

54-58% 21.1 12.9 0.1 0.3 34.4

Only federally inspected plants

www.canadiancattlemen.ca

market talk with Gerald Klassen

Feed grain outlook for 2012

’ve received many inquiries over the past month in Using an average yield of 60 bushels per acre, production regards to the feed grain outlook for 2012. Many could reach up to 9.3 million mt compared to 7.8 million analysts have been providing a bearish outlook mt in 2011. Despite the larger production, demand will but barley and feed wheat prices have held value also increase in 2012-13. throughout the winter. One thing we have all learned Canadian barley exports are expected to reach 2.0 milover the past couple years is that the market can be quite lion mt in 2012-13, up from the 2011-12 projection of 0.9 sensitive to any changes in production. Larger levels of million mt. A non-monopoly environment will likely result stocks in major exporting countries do not necessarin a larger export program for feed and malt. World barily translate into a bearish scenario given the growing ley supplies are rather tight and we currently find Canademand and higher correlation of feed grains with the dian domestic values at a discount to some of the recently energy complex. Currently, the U.S. is factoring in a traded levels into North Africa and the Middle East. In historically low corn carryout and there are many variaddition to large exports, domestic malt production is ables to digest before new crop arrives. World wheat also expected to increase. Given the larger export demand stocks have been quite burdensome since harvest but and regular feed usage, the 2012-13 ending stocks could the market doesn’t seem to break sharply lower. Thereget even tighter relative to 2011-12. fore, I thought this would be a good time to review the The USDA estimated the 2011-12 corn carryout at 801 overall fundamental situation million bushels on their Feband make sure producers have ruary report. This is basically a realistic view of the markets bin bottoms so supplies are Many analysts are factoring moving forward. extremely tight until new crop Cash barley prices in southappears. U.S. export demand a year over year increase ern Alberta have been hovering was nudged higher as dry conof 25 per cent in Canadian in the range of $208 to $213 cerns in South America along throughout the winter. Maniwith adverse conditions in Eastbarley acreage. Using an toba prices recently came under ern Europe tightened world pressure but were as much as supply projections. I’m projectaverage yield production $20 premium to Alberta valing world corn stocks at the could reach up to 9.3 million mt end of 2011-12 to be about 10 ues. The large unseeded area in Saskatchewan and Manitoba million mt below the six-year compared to 7.8 in 2011 caused this region to be in a average. This will keep prices sharp deficit. Looking forward, firm until new crop production barley prices will likely stay firm until the new-crop prois more certain and buyers start to anticipate the large duction is more certain. The 2011-12 carryout has potensupplies. U.S. corn acreage is expected to be in the range tial to drop under 1.4 million mt which is historically of 95 to 96 million for 2012 but given the tight stocks, tight. Lower available supplies late in the crop year may the market needs to confirm this acreage through strong result in price strength from April through July. Western prices. If acres are all of sudden under 95 million, the corn Canadian conditions are on the dry side and this usually market is not overly bearish if yields come in below avercauses farmer selling to slow or even come to a halt in age. Don’t start counting on a large corn crop until more certain years. of the variables are certain. Statistics Canada released their December 31 stocks New-crop barley prices could be weaker if favorable report and there were no major surprises. One point to growing conditions materialize in North America. Howstress is that wheat consumed for feed usage was up one ever, stocks of barley and corn are down to historical million mt over last year even though the wheat crop was lows at the end of 2011-12 crop year and the market significantly higher quality. Domestic feed wheat values will be very sensitive to any supply uncertainty over the have been higher then world milling prices so this is not next eight months. a surprise that farmers are selling milling quality wheat into the domestic market. Gerald Klassen analyzes markets in Winnipeg and also maintains At this time, many analysts are factoring a year-overan interest in the family feedlot in Southern Alberta. He can be year increase of 25 per cent in Canadian barley acreage. reached at jkci@mymts.net or 204-287-8268. www.canadiancattlemen.ca

Cattlemen / March 2012 65

SALES AND EVENTS EVENTS March

10-11—107th Annual Regina Bull Show and Sale, Evraz Place, Regina, Sask. 13-14—Medicine Hat Bull Show and Sale, Medicine Hat, Alta. 13-15—Ottawa Valley Farm Show, Lansdowne Park, Ottawa, Ont. 20—Chinook Applied Research Association — Cropping Strategy Seminar, Oyen, Alta. 20—21st Annual Leeuwenburgh Angus Bull Sale, Balog Cow Palace, Lethbridge, Alta. 21-22—Alberta Farm Animal Care Council Meeting, Holiday Inn 67th St., Red Deer, Alta. 26—Lakeland College Bull Test Sale, Lakeland College, Vermilion, Alta. 28-29—Alberta Pork Congress, Westerner Park, Red Deer, Alta. 29-31—Northlands Farm and Ranch Show, Expo Center, Edmonton, Alta.

AD INDEX Page Ag Growth Industries 18 Agriculture and Agri-Food 6 Agrowplow Canada 58 David Andrews 58 Bar T5 Agra Services 62 Beef Improvement Ontario 58 Beefbooster 23 Boehringer Ingelheim 25 Brett Young Seeds 15 Canadian Angus Assoc. IFC Canadian Charolais Assoc. OBC Canadian Hereford Assoc. 5 Canadian Limousin Assoc. 28, 29 Canadian Red Angus Assoc. IBC Canadian Shorthorn Assoc. 39 Canadian Simmental Assoc. 43 Canadian Welsh Black Society 58 Case-IH 12, 13 Crowfoot Cattle Company 61 Direct Livestock Marketing 20 Eionmor Stock Farm 56 Farmers of North America Inc. 11 Fleetwood Farms Quarter 62 General Motors 7 Giberson Performance Horses 62 Greener Pastures 52 Holloway Farms 53 International Stock Foods 58 John Deere Ag Marketing Center 31 Kaiser’s Celtic Cattle 61 Kubota Canada 26 a-h Lakeland Group/Northstar 10 a-p Matchmakers Select 58 Merck Animal Health 51 Merial 19, 41 Myterra Ranch 62 Nerbas Brothers Inc. 57 Norheim Ranching 58 Northwest Consolidated Beef 58 Novartis Animal Health 21 Peak Dot Ranch 37 Pfizer Animal Health 17, 34, 35, 49 Real Industries 20 Red Brand Fence 52 Right Cross Ranch 45 Rivercrest Angus Ranch 59 Sandy Bar Angus 33 Sandy Ridge Stallion Station 62 Spiritview Ranch 9 Spring Creek 56 Summit 3 Sale 59 Veno Ranches 56 Who’s Your Daddy 57

66 CATTLEMEN / MARCH 2012

April

2-3—Profitable Pastures Grazing Schools by Greener Pastures Ranching Ltd., Westlock, Alta. 7—Douglas Bull Test Station Sale, at the station, Douglas, Man. 14-15—Lloydminster 4-H Grooming and Showmanship Clinic, Lloydminster Exhibition, Lloydminster, Sask.

May

31-June 3—Livestock Markets Association of Canada Convention, Deerfoot Inn and Casino, Calgary, Alta. 31-June 3—LMAC Annual Auctioneers Competition, VJV Foothills Livestock Auction, Stavely, Alta.

June

5-7—2012 3rd International Beef Welfare Symposium, Delta Bessborough, Saskatoon, Sask., www.beefwelfare2012.ca 5-7—Canadian Animal Health Institute Annual Meeting, Westin Trillium House, Collingwood, Ont. 13-17—Canadian Angus Association Annual Meeting, Lethbridge Lodge, Lethbridge, Alta.

July

6-15—Calgary Stampede, Stampede Park, Calgary, Alta. 8-25—2012 World Hereford Conference, Olds Ag Society, Olds, Alta. 13—Canadian Limousin Association AGM, Olds, Alta. 13—National Jr. Limousin Conference, Olds, Alta. 14—Greener Pastures Walk — Family Event, Busby, Alta. 11-13—National Junior Limousin Conference, Olds Ag Society, Olds, Alta. 11-13—Canadian Limousin Annual General Meeting, Olds Ag Society, Olds. Alta.

August

14-17—Canadian Cattlemen’s Association Semi-annual Meeting, Deerfoot Inn and Casino, Calgary, Alta. 15—Beef 2012 — International Livestock Congress, Deerfoot Inn and Casino Calgary, Alta.

26—Harvie Ranching Charolais and Polled Hereford Bull Sale, at the ranch, Olds, Alta., www.harvieranching.com

27—Cattlemen’s Choice Angus Bull and Replacement Female Sale, at the ranch, Hanna, Alta., www.cattlemenschoiceangus. com

28—Best West Limo Classic Bull Sale — Diamond C Ranch and Lazy S Limousin, Rimbey Agriplex, Rimbey, Alta. 28—Right Cross Ranch 1st Annual Bull Sale — Black and Red Angus, at the ranch, Kisbey, Sask., www.right crossranch.com 31—Summit Three Sale — Speckle Park, Northlands, Edmonton, Alta., codiak@ alberta.com

April

4—Peak Dot Ranch Sale — 168 bulls and 60 heifers, at the ranch, Wood Mountain, Sask., www.peakdotranch.com 5—Holloway Farms Ltd. Hereford Production Sale, Dryland Trading Corp. Veteran, Alta. 5—Who’s Your Daddy Bull Sale, Saskatoon Livestock Sales, Saskatoon, Sask. 7—26th Annual West Country Bull Sale, at the farm, Innisfail, Alta., www.shorthorn.ca 7—Towaw Cattle Co. 33rd Annual Bull Sale, at the ranch, Sangudo, Alta., www.towawcattle.com

7—Maritime Beef Test Station Breeding Stock Sale, at the Station, Nappan, N.S., www. maritimebeefteststation.com

11—9th Annual Spady Bull Sale — RivercrestValleymere Angus, at the Rivercrest Ranch, Alliance, Alta. 14—12th annual Practical Innovators Bull Sale, Olds College, Olds, Alta. 14—Sandy Bar Angus — Short Grass Bull and Female Sale, at the ranch, Aneroid, Sask., www.sandybarangus.com  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

STAMPEDE

By Jerry Palen

SALES March

10—LLB Angus 26th Annual Sping Spectacular Bull and Female Sale, at the farm, Erskine, Alta. 11—107th Annual Regina Bull Sale, Evraz Place, Regina, Sask. 16—Double L Ranch Bull Sale with Reese Cattle Company, Innisfail Auction Mart, Innisfail, Alta. 17—Sandan Charolais Bull Sale, at the farm, Erskine, Alta., www.sandancharolais.com 22—Soo Line Cattle Co. 10th Annual On Track Bull Sale, at the farm, Midale, Alta. 23—12th Annual Saskatoon Gelbvieh Bull and Female Sale, Saskatoon Auction Mart, Saskatoon , Sask.

“It just doesn’t feel that cold out, does it Flo?” www.canadiancattlemen.ca

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I’ve seen our breeders really do a remarkable job in making our breed more convenient by lowering birth weights and improving calving ease, while maintaining performance and efficiency that the Charolais breed has always been known for. The tans have always been accepted for their ability to feed well, grow and yield with a little bigger carcass weight. I am encouraged that the white calves have returned to selling right alongside the tans. Now the silvers are selling at a premium because they offer heavier carcass weight over straight British cattle and provide market flexibility while meeting the marbling and lean meat yield requirements of the packer. Over the last number of years the beef industry has emphasized marbling. Going forward I see the industry demanding cattle that perform and yield. I believe the Charolais breed is in a great position to fill that demand and the Char calf will continue to be a very valued commodity.’’ -Neil Gillies, General Manager Canadian Charolais Association In 1988, Neil Gillies started as the fieldman for the Canadian Charolais Association. He left to take a position with the Ontario Cattlemen’s Association, working with beef processors to develop value-added beef programs. In 2001, Neil was given the opportunity to return to the Canadian Charolais Association as the General Manager.

Char12.indd 1

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