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EXTENDING PERENNIAL PASTURES • GRASS TETANY • BEEF WATCH • ONE ID DATABASE

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May 2012 $3.00

FORAGE BREEDING IN CANADA

Dr. Bruce Coulman, University of Saskatchewan

Publications Mail Agreement Number 40069240

May 2012

Volume 75, No. 6

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 Never eat your dessert first.............................................8 Getting better, not bigger… with cattle. .................. 12 How to extend those perennial pastures. .................... 16 Taking the pulse on forage breeding in canada........... 20 Mix it up.......................................................................... 28 React fast to grass tetany............................................ 32

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COMMENT............................................... 4 NEWSMAKERS......................................... 6 NUTRITION............................................ 24 VET ADVICE.......................................... 26 HOLISTIC RANCHING.............................. 36 STRAIGHT FROM THE HIP...................... 41 CCA REPORTS...................................... 42 PRIME CUTS......................................... 44 RESEARCH............................................ 45 NEWS ROUNDUP................................... 46 PURELY PUREBRED............................... 52 THE MARKETS...................................... 55 MARKET TALK....................................... 57 SALES & EVENTS.................................. 58

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Cattlemen / may 2012 3

c o m m e n t

by Gren Winslow

A hard lesson It’s better to prepare for bad news stories before they break

here are several references to pink slime in this issue. The term itself is a misnomer, of course. It is a tawdry tagline dreamed up by a disgruntled USDA employee that later found its way into a New York Times story on lean finely textured beef (LFTB), a perfectly safe and uniquely innovative product made from recovered bits of fatty trim that would otherwise be lost on the beef line. Puffs of ammonium hydroxide were introduced to the process to kill pathogens back in 2001 so it was a very safe product. It was one of those little miracles of innovation that are so vital to a sound industry and it will take the equivalent of 1.5 million head of cattle per year to supply the same amount of trim if it is lost to the market. But that wasn’t enough, as Steve Kay relates in his column this month. “Media attacks over the past three years on the product come from a documentary about food production, the New York Times and a British celebrity chef. The term pink slime is used to describe LFTB. TV network ABC News regurgitates the story this March and the term enters the social blogosphere.” As we all know the fallout from this latest media firestorm was intense. Beef Products Inc., the company that made LFTB shuttered plants and as of mid-April was limping along at one of their four previous operations. The price of 50CL trim dropped like a stone dragging down the whole beef complex through March, costing the U.S. industry about $20 million a week, and the effects were still being felt in April. What’s surprising about this latest media mauling is that it came as such as surprise to everyone. This was a crisis that was three years in the making but when it hit in March no one appeared to be ready to respond, not the company, the government or industry organizations. Oh, fact sheets outlining the myths about pink slime started to flood email channels fairly early in March. And some governors and USDA secretary Vilsack went public with statements of support for the product. But by then the dam had broken, and this wasn’t nearly enough to turn the tide. Big food chains and food service outlets stopped buying hamburger made with LFTB, and the final wound, USDA allowed suppliers to its school lunch program to drop the product in the face of all the public criticism.

4 Cattlemen / May 2012

It was all so chillingly familiar to 2003 when the first BSE cow was discovered in Alberta. A catchy tag name and a media blitz shouted down any rational discussion. The seeds of this controversy were also known well in advance but everyone in a position to prepare for the onslaught chose to ignore it, hoping against hope that we would never see a case of BSE here. It has taken several years to not only put all the safeguards in place — that had to be done in any event — but to convince the public that BSE is a non-story, and certainly not a food safety concern. Just look at the reaction of the media and public to the news last month of a fourth U.S. case of BSE in a California dairy cow. The official announcement hit all the right notes: the food supply is safe; the safeguards put in place are working; no meat from this animal made its way into the human food chain. USDA immediately put a BSE information centre on its website and prepared to post regular updates. The pubic was informed and the media were flooded with background information. Trading nations were informed and quickly stated this latest case won’t affect their imports of U.S. beef. As a result, the story barely made the national news cycle. The market took a one-day dip on the news but bounced back the next in the face of the mild media reaction. It was business as usual. The shame of it is it took such a long time to reach this point. Surely there must be some lessons we can learn from all this. I’m sure all of us could come up with a list of potentially hot topics that some eager beaver at a TV network could cook up into a damaging brew for the beef business. When officials look at these issues today they naturally focus on the practical solutions. If it is a disease they want to know how they would identify it, track it, and eradicate it. We naturally want to solve the problem before it becomes a serious threat. Perhaps it is time that we also started to spend more time on how we will inform the public and the media about this problem, before it hits the proverbial fan. I bet the people at Beef Products Inc. wished they’d hired the PR firms the first time they heard someone use the term pink slime to describe their safe, wholesome product. www.canadiancattlemen.ca

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NEWSMAKERS Betty Lou Scott of Mount Thom, Nova Scotia was one of five recipients of Farm Credit Canada’s Rosemary Davis Award last month. The award honours women who are active leaders in agriculture. Scott is co-owner of WindCrest Farm, a 90-head Angus breeding operation, a teacher (retired) and long-serving volunteer to her local 4-H, provincial and Maritime agriculture exhibitions, co-ordinator of the Maritime beef show and board member of the Maritime Angus Association and the Canadian association’s fundraising foundation. Award winners receive a trip to Boston to attend the 2012 Simmons School of Management premier leadership conference for women. Don McLennan, a forage and beef producer from Medicine Hat, was re-elected to the board and as chair of the Alberta Forage Industry Network (AFIN) during Don McLennan the organization’s second annual meeting, in Olds. Lyndon Mansell, a forage and beef producer from Innisfree, was re-elected as vicechair. Doug Wray, a beef producer and grazier from Irricana and current chair of the Canadian Forage and Grassland Association, and Chris Fulkerth, an instructor with the forage and range program at Olds College were also elected as directors. Returning board members include Dr. Surya Acharya of Lethbridge, Albert Kuipers of Red Deer, Jaime Borduzak-Semple of High Prairie, and Kevin Shaw of Sherwood Park. Grant Lastiwka of Alberta Agriculture and Arnold Mattson of Agriculture and Agri-Food Canada’s Agricultural Environmental Services Branch serve as advisers to the board. AFIN’s virtual home base is www.albertaforages.ca. At the Canadian Cattle Identification Agency annual meeting last month Alberta cow-calf producer Darcy Eddleston was re-elected as chairman of the board of directors. Also re-elected were vice-chair, Dr. Pat Burrage, finance chair, Terry Kremeniuk, and director-at-large, Mark Elford of the Saskatchewan Stock Growers Association. Dairy Farmers of Canada representative Ron Versteeg becomes the new director-at-large, replacing Ontario Cattlemen’s Association presi6 CATTLEMEN / MAY 2012

dent Dan Darling who completed his term on the board. Alberta’s Livestock Identification Services (LIS) CEO David Moss has resigned to become the CEO for North America of Integrated Traceability Solutions (ITS) David Moss effective April 16. ITS is a global company specializing in livestock traceability software, hardware, livestock-handling equipment, field services and consulting. The company recently purchased the Canadian feedlot management software company, ComputerAid. Moss can be reached at his ITS office in Okotoks, Alta. at 403-9383020, or david.moss@itslivestock.com. Meanwhile, the LIS board of directors struck a subcommittee to work with the interim management team of Cam Camden, Adrienne Waller and Pat Mergen until the CEO position is filled. LIS is an industry-owned organization that provides inspection and movement traceability services to Alberta livestock producers, headquartered in Calgary and online at www.lis-alberta.com. Charlie Gracey the one-time executive vice-president of the Canadian Cattlemen’s Association, member of the Canadian International Trade Tribunal in Ottawa and Charlie Gracey 2001 inductee of the Canadian Agricultural Hall of Fame is stepping down from the board of directors of the Alberta Livestock and Meat Agency this month. Gracey claims this will mark the end of his long career in agriculture, but that is hard to imagine. Wilf John Chegwin of Shoal Lake posthumously entered the Manitoba Agricultural Hall of Fame last month with four other inductees. He was one of the first people in Manitoba to import Simmental cattle from France, setting up a quarantine station close to his Shoal Lake farm to complete the transfer. He successfully showed Simmental and Limousin cattle at major shows from the Calgary Stampede to the Toronto Royal and was a director of the Manitoba and Canadian Simmental associations.

The Cattlemen’s Young Leaders (CYL) Development Program announced the 2012 crop of 16 national mentorship recipients to the public at the CYL Spring Forum in Saskatoon last month. By province they are: British Columbia: Cole Bailey and Erika Strand; Alberta: Amy Mayner, Brodie Haugan, Jakob Meyer, Joanne Solverson, Kerry Hyatt, Micheal Nadeau, Travis Ebens, and Tyson Lowe; Saskatchewan: Ashley Shannon, Eric Buyer, Jeffery Yorga, and Ryan Hurlburt; and Ontario: Kimberly McCaw and Katie Wood. Last month’s surprising Alberta election was tough on agriculture ministers and former chairmen of the Alberta Beef Producers. The Evan Berger Conservatives won a majority but lost a number of southern seats to the Wildrose, ejecting current ag minister Evan Berger and past minister Jack Hayden from the new government. Among the previous ABP leaders, incumbents Darcy Davis and Arno Doerksen both lost and Danny Hozack failed to take the VermilionLloydminster riding for the Wildrose. The Calgary Stampede received the 2012 Alberta Farm Animal Care (AFAC) Award of Distinction for Innovation at a recent livestock care conference hosted by AFAC. The award honours those who have developed a new process, product or knowledge that causes a significant improvement in livestock care. The stampede established an independent animalcare advisory panel in 2010 to guide and enhance its animal-care practices. Other initiatives include developing codes of practice and carrying out internal and third-party assessments on animals involved in transportation, agricultural exhibits, rodeo and chuckwagon events. We are a bit late in reporting that Peter Verleun is the new chairman of the P.E.I. Cattle Producers. The remaining members of the executive are vice-chair Ivan Johnson, secretary treasurer Brian Morrison, directors David McCloskey, Jeremy Stead, Sterling Jay and ex-officio director Ronnie MacWilliams representing the Dairy Farmers of P.E.I. C www.canadiancattlemen.ca

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GRAZING

NEVER EAT YOUR DESSERT FIRST That’s my cure for bloat

was home alone tonight and prepared myself a nice healthy supper. The problem was I was very hungry and my All Natural Grass-Fed Beef Stir Fry just would not cook quickly enough for my hunger bugs. No kids around and the homemade chocolate chip mint ice cream was calling out for me. Just a bit won’t hurt. The kids will never know right? But I resisted the temptation! I have a rule at Greener Pastures that even the cattle have to obey. Never eat your dessert first. Let me explain. I believe that we have more economic losses in ranching today from our fear of bloat, than we would ever get from bloat! We eagerly spend thousands and thousands of dollars every year on fertilizer because we are afraid to use legumes in our pastures. For 20 years we have been buying nitrogen fertilizer when we could have been getting it for free all along. The air we breathe is 78 per cent nitrogen. Legumes can get it for you for free! But we are so scared a couple of animals might die of bloat, we don’t use them. If we would have started using legumes 20 years ago, those bloat-sensitive genetics would be long gone out of our herds and their offspring would have never existed. So what do we have to gain? We would have more bloat-resistant cattle, healthier land and more jingle in our pockets. Hey, it is never too late to start. Let’s back up a bit. A legume is a type of plant that forms a symbiotic relationship with soil microbes to produce nitrogen. The legume gives the microbe a molecule of sugar in return for a molecule of nitrogen, a fair trade all around. Both the plant and the 8 CATTLEMEN / MAY 2012

bug benefit and no one gets hurt. OK, except for maybe our poor genetically deficient bloat-sensitive cow. Bloat occurs when a ruminant animal has a change of diet too quickly. If the rumen bugs cannot adjust inside the rumen fast enough, the change in diet causes the fermentation gases to accumulate in the rumen. It forms foam that prevents the animal from being able to burp up the gases. The rumen expands and this could lead to the animal’s death. Oops! OK, so maybe someone could get hurt; I guess that is the reason we are all scared to death of legumes. Examples of legumes that can cause bloat are alfalfa, sweet clover, red clover, alsike clover and white clover. However, we do have some other choices. Bird’s-foot trefoil, sainfoin and cicer milkvetch are examples of non-bloat legumes. They still produce nitrogen but do not cause issues in the rumen. Your choice for which legume to use in your mix can depend on environment, weather, management and production of the forage stand desired. I actually prefer a combination but you need to determine which is best suited for your environment under your conditions. I recommend a legume-grass mixture over a pure legume stand as monocultures are not natural. Did you know that caragana, buffaloberry and Indian sea buckthorn are also legumes? So how do you avoid a wreck? There are a few management steps you can take to reduce your risk of bloat. I am assuming in this article that you are managing your pastures with a high stock density rotational grazing system. If you are still continuous grazing, then

the last three years of my articles have been a waste of your time. You should turn the page. For me, the most important thing you need to do to avoid bloat in a high-percentage legume paddock is to maintain a constant diet for the animals. If you have the same quality of forage in the rumen every day, then your risk is very low. I also encourage you not to be the early bird. When grazing legumes, the early bird gets the wreck! It is better to move the animals on to a new piece of pasture in the afternoon. Ruminants are more susceptible to bloat in the morning because of differences within the plant due to nighttime respiration. The daylight causes the plants to switch back to photosynthesis, which reduces the risk of bloat after a few hours of sunlight. Never move in the morning. I also never move cattle when they are hungry. Make sure you leave lots of residue so when you move them their rumens are full. It is also advisable not to move cattle when the plants are wet as they break down quicker when wet from rain or dew early in the morning. The maturity of the plants is another important factor in reducing your bloat risk. The more mature the plants, the less the risk. Grazing in the vegetative stage is more risky than the full-bloom stage. Also, allowing animals to graze just the leaves of the legume increases the risk. If cattle are made to eat the leaves and the stem together, you should have no problems. Let’s put this into action. Never let them eat their dessert first. Day 1: My herd is on a grass paswww.canadiancattlemen.ca

legume paddock in the afternoon. You ture and we are moving on to a highalso have the option of feeding them percentage legume pasture. First, sleep some roughage before they move on to in. Let the cattle eat all morning on a new legume paddock as well. Giving the grass pasture (the main course) to them a hay bale in the morning will fill their rumen, and make sure there help make up the main course if your is plenty of forage left in this paddock. first paddock is grazed down too much. (If you have the option, move them to Just make sure they are not hungry a paddock that has the least amount going into the new legume paddock. of legume.) Now we use some electric Allowing one or two days to adjust the fence and only give them a small piece microbiology within the rumen will of the new legume paddock (dessert) in reduce your risk of bloat a great deal. the afternoon. Ration off a half-day’s Now that we are on a legume pasration but still allow them to go back ture, we just need to maintain a constant to the first paddock. ration. Daily moves work best for me. Day 2: If you are quite worried I move the cattle from paddock to padabout bloat because of your type of dock every afternoon. This allows them cattle, stage of plant maturity, moisture to eat the stems and grasses all morning on the plants or if it will just help you from yesterday’s paddock, and then they sleep better, you can repeat the steps are turned into the new paddock in the of Day 1 again for Day 2. If I’m not afternoon where they eat the best of the so worried, I skip Day 2. Just make best. Let them top up with dessert. Daily sure you have plenty of forage in the moves in the afternoon are your best first paddock still. This is allowing the defence against bloat. rumen bugs to adjust to the new type If you are not able to move daily of forage gradually. but still have high legume pastures Day 3: Sleep in again and let them to graze, then you need to adjust fill up on the main course. Then go WH PP - 7cattle x 5 -_AGI move the into 12-02-16 the rest of3:48 thePM newPage 1the rumen every time you move. For

example, if you are moving every four days, the cattle will eat all the best forage at the beginning and leave the poorer quality for the last day. If you just move a herd on to a lush paddock of legumes on Day 4, you could have a wreck. If this is the case, come down on Day 3 and give them a small piece of the next legume paddock, then let them finish up on the first paddock. Let the rumen adjust. Now you are safe to move into the next legume paddock on Day 4 in the afternoon. There are lots of factors that can cause bloat but the most important tool you have in preventing it is management. Learn how to manage legume pastures and include them in your pasture stands. It is great for your land, your cattle and your bottom line. Free nitrogen is a good thing. No? OK, supper is over. Time for ice cream! C — Steve Kenyon Steve Kenyon runs Greener Pastures Ranching Ltd. in Busby, Alta., www.greenerpasturesranching.com, 780-307-6500, email skenyon@greenerpasturesranching.com.

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CATTLEMEN / MAY 2012 9

doinG more. UsinG less.

A series on being ready for the farming challenges ahead

Global financial markets: Today, grains and oilseeds are not necessarily traded on their own, but as part of a “basket” of commodities

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WHeAT CAsH PriCes AT PrinCiPAl mArKeTs No. 1 Dark Northern Spring (13%) Minneapolis. Yearly average from 1970-71 to 2010-11.

12 10

Dollars per bushel

8 6 4 2 0

1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

ntil early 1972, it was a big day on the Chicago wheat futures market when the price moved more than a cent per bushel in a trading range of $1.50 to $1.60. In August that year, the nearby future jumped to $1.80. In September it was $2, which may not sound like much today, but it represented a one-third increase from a few months earlier. It just kept moving from there, topping $3 in July 1973 and then soaring to $6.31 in February 1974. That’s more than $30 per bushel in today’s dollars. Sounds like party time, and anyone who was farming then will probably confirm that it was. They will also tell you that parties are often followed by hangovers. That surge in prices at the time was due to “The Great Grain Robbery,” in which wily Soviet Union grain buyers made a series of individual low-priced purchases which in total cleaned out most of the U.S. grain supply. That was followed by another major world event when OPEC oil-exporting nations imposed an embargo in response to U.S. support of Israel, creating an “Oil Crisis.” The combination of higher petroleum prices and higher demand for the product put nitrogen fertilizer prices on a similar trajectory to grain. Urea prices which had been coasting in the low $80-per-ton range in 1972 reached $244 in early 1975. While they dropped after, so did grain prices. By late 1977, wheat futures were back down to the $2.50 range — a drop of 60 per cent from the peak — but urea had dropped only 30 per cent. There were brief grain price surges in 1980 and 1996, and anyone farming today knows about the wild markets of 2008 and 2011. They also know about that familiar pattern — when grain prices rise, so does the cost of the inputs. When grain prices fall — which they inevitably do — input costs don’t necessarily follow. Chicago wheat futures were recently trading around $6.25, or about the same as that peak in 1974, but U.S. urea prices are around $420. Things are not quite as bad as that comparison suggests. Improvements in genetics, agronomy and machinery mean that farmers can produce many more bushels per acre than 40 years ago. On the other hand, they’re more at the mercy of commodity

Source: USDA Economic Research Service

market fluctuations than ever. Grain and oilseed prices today aren’t only a function of supply and demand for those products, with traders in colourful jackets trading with each other by paper, pencil and loud voices. That’s been replaced by electronic trading, often by huge pools of capital in funds trading a basket of commodities, and with buy or sell decisions made by a computer program. A decision to sell copper or oil can also mean a decision to sell corn or canola, regardless of the fundamentals of those crops. That interrelationship is made even more complex by grain and oilseed crops becoming important sources of not only food, but energy. As any corn grower knows, higher prices due to ethanol demand are nice to have, but the cost of fuel and fertilizer to plant the crop is another matter. Recent markets have made for some of the best returns ever for North American crop producers, but also some of the highest risk ever as crop prices and input prices fluctuate wildly, often in different directions. The term “risk management” wasn’t heard much in the days before the Great Grain Robbery, but today it’s an essential skill in running a farm.

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MANAGEMENT

GETTING BETTER, NOT BIGGER… WITH CATTLE A succession plan based on more cattle, not more acres

The rotation The objective of working forages into the annual crop rotation is to build a layer of plant residue on the soil surface to protect it from the elements and to retain moisture while the root system contributes nutrients and organic matter. This summer will be the first for working a grazing field into the annual crop rotation. They’ll give it a graze in the spring 12 CATTLEMEN / MAY 2012

PHOTO CREDIT: MAFRI

ven though the Boyd farm looks and operates entirely different from the days when the first generation put down roots near Forrest, Man., in the 1940s, the goal remains the same — to produce bountiful crops, raise healthy cattle and maintain fertile soils. Many years from now when Ryan Boyd has time to contemplate his tenure on the family farm, the first few years may very well stand out as a pivotal period. Boyd joined his parents, Jim and Joanne, full time after completing his bachelor degree in agriculture in 2005 and Sarah joined him in marriage last summer. Their operation, SG&R Farms, was recognized as one of Manitoba’s 2011 graziers of the year. Pretty much from the get-go they knew that changes would have to be made to improve cash flow if the farm was going to provide enough income for two households. Despite the state of the beef market at the time, the cow herd remained a centrepiece of their strategy. Rather than increasing the size of the farm to crop more acres, they decided to increase the cow herd to improve the productivity of their existing land base. At the time, the Boyds were running about 120 cows on 200 acres of native grass pasture and had approximately 3,000 acres for annual crops and hay production. They had observed that the best crop yields came from land that had been in hay within the previous 10 years. If they wanted to increase forage in the crop rotation, they would have to increase the size of the herd. Adding more cows meant they would need more pasture and would have to move to calving on grass to make it manageable. If they were going to calve later, they also needed to adjust their marketing strategy and if they were going to retain the calves through the winter, they could work a yearling operation into their plans for harvesting forages. “Dad has kept an open mind. If I come up with an idea and present it well, he’s right on board. So, I’m fortunate that way,” Boyd says. “Calving in June wasn’t a hard sell, compared with dragging cold calves into the barn in February. Moving cows every day in a rotational system sounds like a lot of work, but it’s not really when all you have to do is hop on the quad. He has enjoyed it as much as me.” They started by sowing about 1,000 acres of cropland to a forage mix for rotational grazing and fencing all of the cropland for stubble grazing. Five water pipelines running off either a well or a dugout, and a solar water pump supply water to most of the 110 tame-forage paddocks. The herd gradually grew to 300 cows and their yearling operation to 400 head. Their thinking on purchasing additional calves each fall has changed in light of the recent increase in calf prices. Instead, they opted to purchase fewer calves and buy-in some good bred cows that were going for a couple hundred dollars over market price. This year, they will calve 400 cows.

Ryan and Sarah Boyd and their wire hopping quad. and then spray and possibly hay it toward the end of July. It will likely go into winter wheat if the growing season allows. If not, it will be ready for any crop the following spring. Boyd says it’s not a problem working the grazing land into the crop rotation because all of the fences inside the two-strand electric perimeter fences are single-strand fences that can be easily removed. Once the cattle are trained to the electric fence, it becomes more of a mental barrier than a physical barrier. There are no hard and fast rules for the forage rotation. For instance, the past couple of years have seen crop prices improve, while hay prices have been reasonable. Economics said the best return would be from cropping the land and buying-in hay. It could pencil out differently with the jump in herd size and the need for 2,500 bales next winter, though Boyd does account for the value of the imported nutrients from the hay that are recycled through the cows and returned to the soil to improve fertility. He is thinking that including a grazed annual crop, such as corn, would add diversity to the crop rotation and beef Continued on page 14 www.canadiancattlemen.ca

BRD PROTECTION… IT’S NOT ONE SIZE FITS ALL.

Different cattle have different BRD challenges and require different levels of protection. Most are not in the extreme high risk category – a category that includes lightweight commingled feedlot calves for instance – so why pay more for extreme protection? Treat your calves on arrival with a product that gets to work right away and remains active in the lungs1.

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.

1997 Zactran Beef Ad-EN-CndC.indd 1

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operation and might be more feasible and profitable now than it was five years ago when they first gave it a try. The soil is given an additional boost by bale grazing the cows from the time they start on stockpiled forages in late fall, working into full bale grazing by the new year up until sometime around the beginning of April when the land is dry enough for them to go back on to the stockpiled forages. Forage growth doubles the year after bale grazing.

The grazing system The biggest bang has been from implementing high-density stocking rates during the summer grazing season. “My goal for stocking density is to get approximately 50,000 pounds of beef per acre. It’s no problem grouping yearlings to achieve this, but pairs need a little more space. Last year, with 270 cows at approximately 1,400 pounds each, I was able to get 20,000 to 60,000 pounds per acre depending on the size of the pasture,” he explains. He took advantage of the National Grazing Mentorship program to hook up with Neil Dennis of Wawota, Sask., who operates a custom yearling grazing operation using a highdensity, rotational grazing system to improve soil health. Boyd picked up a lot of design tips as well. The grazing system is arranged into 10-acre paddocks. His preference is to further divide them into five-acre sections, moving the cattle into the first half of a new paddock in the morning after the dew is off the grass and then opening the other half to give them the full 10 acres overnight. The pastures respond well to this, he says. The cattle are all for it, too. Their quad is rigged up with an arm on front that guides the electric wire under the quad, which saves time opening and closing gates to get from paddock to paddock. There are no gates so he has trained the cattle to move under a wire when it is raised with a pipe. The only issue has been mismothering, particularly with heifers. Before the move each morning, he notes the newborns to be sure they have mothered up and leaves the back fence raised so they can move on their own time. One of the biggest challenges in the yearling group has been foot rot. They would notice the signs as soon as the calves started grazing forage on former cropland. “It wasn’t unusual to find 20 calves limping and there was no reason for it because they were on fresh pasture every day and drinking out of troughs,” Boyd says. Soil and forage tests pointed straight to a mineral imbalance with the forage being low in copper and high in molybdenum. By pinpointing the problem, he has been able to feed a custom-blend mineral, which has really brought both foot rot and pink eye under control. The incidence of bloat is significantly less than it was during the first couple of summers when the alfalfa got a head start on the grasses in the mix that includes smooth and meadow brome, crested wheat grass, orchardgrass, a bit of red fescue, and cicer milkvetch. The grass species have filled in nicely, with orchardgrass shining in its production and palatability. “The cows love it. When they go into a new pasture, they’ll eat down the orchardgrass, then graze the tops off the alfalfa before eating the brome grasses, leaving the crested wheat grass until Continued on page 15 www.canadiancattlemen.ca

www.canadabeef.ca Continued from page 14

last. The orchardgrass stays nice and green in the fall and even though it doesn’t hold its colour through the winter, the cows will chomp it down in the spring,” he says. “You have to be careful because it can easily get grazed out if it doesn’t get adequate recovery time between grazings.” The pasture mix is being nicely maintained by the planned grazing rotation that allows from 70 to 120 days’ rest between grazings. For the cow herd, the grazing period in each paddock is one or two days and sometimes shorter depending on the time of year and forage growth. Boyd monitors the Brix level of the forages with a refractometer. It’s a small, hand-held instrument that squeezes the juice out of a leaf and gives a reading of its sugar content. “It’s really more of an art than an exact science,” he adds. “The higher the Brix number, the higher the sugar content and the higher the sugar content, the less likely cattle will bloat. If the Brix is up over eight, the cattle just don’t bloat. It doesn’t matter what stage the alfalfa is at.” However, you can’t let up on the monitoring because the Brix level can move up and down fairly quickly. For example, the Brix readings on a stand of lush alfalfa were in the six to seven range, but after a day of rain and cloud, they fell to two to three overnight. This is because photosynthesis is at its peak during sunshine hours. Under cloud cover or at night, plant growth slows and the sugars move to the roots. His refractometer has been a good form of insurance and is a lot less expensive than adding a bloat control product to the water. When he first began using it five years ago, the Brix readings would typically be between two and three. Now, it’s not unusual to see them as high as 10 and even 12 which leads him to believe something good is happening in the soil.

Made in Canada, Real. Authentic. Beef.

Canada Beef and Kraft celebrate the Canadian Beef Producer This summer Kraft Canada will celebrate the beef industry by sharing the stories of four of Canada’s beef producers and will include some great beef recipes as well. The highly regarded “What’s Cooking” magazine produced by Kraft Canada will include a 12-page booklet dedicated to the Canadian beef industry as well as a full page ad and editorial within the May issue of the magazine. “This was a great opportunity to build on our existing relationship with Kraft and their products,” says Joyce Parslow, Consumer Culinary Marketing Manager with Canada Beef Inc. “We provided the recipes, images and content and the Kraft team provided the creative design and printing.”

Genetics The herd is predominately Angus but he is aiming to bring the average cow size down a notch from 1,400 pounds to 1,200. From his experience using small-framed Angus bulls, he realizes that there is a balance to be struck between reducing cow size and maintaining reasonable weaning weights. The heifer calves were too small framed for what he wants as a breeding animal. However, he did retain some of the bull calves from his cows mated to the small-framed bulls. So far, the calves from those first-cross bulls seem to be more along the type of animal that is working out in their system. The ideal cow in their operation will breed back within the 40-day breeding season and be in good flesh when she weans a 500-pound calf the first week of December. The calves are weaned and fed in the yard for a month to get them started. Normally, they bale graze in winter apart from the cows. This winter, they were custom fed at a backgrounding lot due to restraints at home while increasing the cow herd. The high-performing calves weigh 900 to 1,000 pounds when sold off pasture in August or September. That’s not to say that making all of these changes within five years hasn’t been without its challenges. “There were growing pains and it was a steep curve moving to summer calving and selling the calves as yearlings. Last summer we felt like we were getting the routine down and things were working like we had thought they should,” Boyd says. “It is motivating when you try new things to see some of them work out.” C — Debbie Furber www.canadiancattlemen.ca

The booklet, Made in Canada, Real. Authentic. Beef. will be distributed to approximately 500,000 consumers in Ontario and Alberta. Beef producers from across the country share their stories and their commitment to such things as the environment and animal welfare as well as their dedication to providing healthy food for their families and the world. Beside each article about the producer is a great beef recipe designed to whet the consumer’s appetite and get them shopping for great Canadian beef. “This was an excellent opportunity to not only share the culinary advice and recipes we are known for, but to also show the consumers the amazing people providing the food for their tables,” says Parslow. The booklets will be available to What’s Cooking booklet subscribers and Canada Beef will have some copies available to order through their canadabeef.ca website.

Sharing the stories of the amazing people providing the food for our tables.

CATTLEMEN / MAY 2012 15

RESEARCH

HOW TO EXTEND THOSE PERENNIAL PASTURES Regrowth is the key

razing perennial pastures is still the cheapest way to reduce winter feeding costs. Work by the Western Forage Beef Group at the Agriculture and Agri-Food Canada research centre at Lacombe has proven that, and provided a road map for extending the grazing season. The first requirement is high-yielding forages, says Dr. Vern Baron, a forage physiologist/agronomist at Lacombe. “Smooth brome and meadow brome grass have ranked high for regrowth yield over a range of summer and fall moisture conditions however, smooth brome grass has high overwinter loss of leaf and stem material. Orchardgrass, quack grass and timothy are high yielding under good moisture conditions, but orchardgrass and timothy lose more dry matter over winter than meadow brome grass. Quack grass has low overwinter losses, while creeping red fescue and Kentucky bluegrass produce relatively low stockpiled regrowth yields,” says Baron. Perennial forages store carbohydrate and protein in roots and crowns as they regrow in preparation for winter. To a certain extent these nutrients are mobilized out of the leaves. However, the slow growth and cool temperatures during the fall allow some carbohydrate to accumulate in the green leaf material. This allows regrowth of tame grasses in the Parkland of Western Canada to remain green going into winter. Green leaves can survive a few degrees of frost, and if the snow comes while the leaves are unfrozen, they remain green and viable most of the winter. Protein levels remain adequate for grazing dry beef cows, and the fibre levels are lower than if the leaves had died before the snow fell. In general, meadow brome grass and creeping red fescue retain their nutritive quality better than other species during the winter. This is likely because both have relatively high sugar content in the fall. Sugars are water soluble and stored in plant cells where they provide energy to maintain leaves and growing points during the winter. “Leaf death occurs when the energy source is depleted,” explains Baron. “When the leaves die, cell membranes become brittle, allowing the cell contents to leak out. With lower sugar content, fibre increases, digestibility decreases, and protein may or may not decline.” This is why it makes more sense to graze stockpiled forage regrowth in the fall or early winter rather than closer to spring when leaf loss is much greater. Alfalfa is particularly susceptible to leaf loss after a frost. Pregnant beef cows grazing forage regrowth early in the spring will require additional energy, says Baron. “Meadow 16 CATTLEMEN / MAY 2012

Extended grazing plans begin with high-growth forages. brome grass and creeping red fescue retain overwinter nutrient quality better than other species but may still not meet the protein and energy requirements of a cow in late pregnancy. Leaf loss of stockpiled forage over the winter can range from less than 10 per cent for Kentucky bluegrass and timothy to over 30 per cent for smooth brome grass and crested wheat grass. Meadow brome grass and orchardgrass may lose 20 to 25 per cent of original yield. Thus, the earlier the forage is grazed in the fall the better. Leaf loss limits the usefulness of legumes in extending the grazing season as they tend to lose leaves quickly following hard frosts and with advancing maturity. Cicer milkvetch retained leaves and nutrients well into October and could be grazed longer than alfalfa. However, the cows tended to ignore it after it had matured and set seed. By spring yield losses on any legume may be as high as 40 per cent, compared to 10 per cent from Sept. 15 to Oct. 15 in a Parkland environment. Winterkill was not a problem with alfalfa grazed after Sept. 1 at Lacombe. “In a snow-free environment, grazing efficiency decreases as yields fall below 1,800 pounds per acre,” says Baron. So for cows to successfully graze forage through the snow the regrowth has to yield more than this amount. At Lacombe, meadow and smooth brome grass, orchardgrass and standard alfalfas cut for hay on July 15 consistently produced more than this 1,800-pound www.canadiancattlemen.ca

minimum by mid-September. Only meadow brome grass and the alfalfas consistently produced that much by mid-September when cut on August 1. When you put it all together, Baron says meadow brome grass-alfalfa regrowth consistently provided a higher carrying capacity at a lower net cost than other pasture types in the Parkland of Western Canada. In order to extend the grazing season, forages need to regrow as long as possible to produce sufficient dry matter. Meadow brome grass-alfalfa pastures have a capacity to regrow after cutting in a two-cut system, while old pastures consisting of a bluegrass, smooth brome and quack grass complex often do not provide sufficient regrowth for stockpiling. Meadow brome responds to rain with excellent growth during mid- to late summer. Old stands consisting of smooth brome grass, bluegrass and quack grass don’t regrow well at this time as their tillers aren’t prepared. In the southern Prairies, species with this

capability may not regrow due to a lack of moisture in most years. In this case stockpiling second-cut grass may not be an option. However, grazing second-cut alfalfa may still be possible if bloat can be managed. Longer rest periods (or earlier cutting dates) are needed as stands age and revert to more bluegrass, creeping red fescue and smooth brome grass. These species do not regrow well and easily slip into dormancy under dry conditions. Just don’t overdo it. The earlier the rest period begins the more the leaf content decreases in grasses and alfalfa by the time you get around to grazing it. “There is a trade-off between yield and quality as the rest period lengthens,” warns Baron. Fertility is another consideration. Baron recommends building an annual soil test into a fall grazing plan. If moisture is adequate a split application of nitrogen may pay off in higher stockpiled yields. Usually the first cut or graze consumes 60 to

70 per cent of the annual growth in perennial forages. If the first cut is taken as hay the pasture loses more nutrients than if it was only grazed in the summer so more fertilizer may be needed to produce enough regrowth for the fall. The cost of fertilization should be stacked against the cost of renting additional pasture including shrinkage and trucking. At Melfort fertilizing grey wooded soil pastures with 90 pounds of N, 45 pounds of P2O5 and 10 pounds of sulphur in alternate years increased forage production by 2-1/2 times and 1-1/2 times in the second year. More information on pasture and range management can be found at www.Foragebeef.ca. This site summarizes all the forage and beef research applicable to Canada. C — Duane McCartney Duane is a retired forage researcher who worked at Melfort and Lacombe during his career.

UCVM Beef Cattle Conference Pushing the Frontiers of Beef Cattle Health June 14th – 15th, 2012 • Coast Plaza Hotel & Conference Centre, Calgary Topics to be discussed include: Parasite Resistance to Deworming Medications Dr Lou Gasbarre, U.S. Department of Agriculture Dr Craig Dorin, Veterinary Agri-Health Services Dr John Gilleard, UCVM

Infectious Disease Transmission, Detection, and Control Dr Calvin Booker, FHMS Dr Pat Burrage, Burrage Veterinary Services Dr Jennifer Davies, UCVM Dr Mary Brown, University of Florida Dr Karin Orsel, UCVM Dr Mathieu Pruvot, UCVM Dr Claire Windeyer, UCVM Dr Steve Hendrick, WCVM

Genomics, Genetic Selection and Health

Dr David Bailey, Genome Alberta Dr Troy Drake, CCHMS Sean McGrath, McGrath Consulting Dr Ty Lawrence, West Texas A&M University Greg Appleyard, Cattleland Feedyards

For the full program and registration package, please visit our web site or contact us at:

Web: vet.ucalgary.ca/beef2012 • Email: beef@ucalgary.ca • Phone: 403-210-7309 www.canadiancattlemen.ca

Cattlemen / May 2012 17

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RESEARCH

TAKING THE PULSE ON FORAGE BREEDING IN CANADA

he second annual meeting of the Canadian Forage and Grassland Association (CFGA) in December was a hopeful sign to the remaining small band of forage breeders across the country. “Certainly, not having a strong, unified voice for forage research has hurt us,” allows Dr. Bruce Coulman, a forage breeder and head of the plant science department at the University of Saskatchewan. The CFGA was established a little (U of S) over a year ago to be that strong voice for this often overlooked crop. Currently, there are four tame and one native forage-breeding programs at university or government research stations in Saskatoon, Lethbridge, SteFoy, Charlottetown and Vegreville. With the recent retirement of federal researcher Grant McLeod at Swift Current there are five perennial forage breeders in Canada, four of whom are over 60. There are no private-sector forage-breeding programs in Canada and that’s unlikely to change anytime soon. However, Canadian seed companies are actively introducing new private forage varieties developed in the U.S. Considering that new perennial forage varieties take 10 years or more to develop, plant breeders have to be a very patient and dedicated lot and successful breeding programs need to have lines in all stages of development in order to release a steady stream of new varieties over time. Despite limited resources, Canada’s tame breeding programs have been successfully releasing new varieties on a regular basis throughout the past decade.

Alfalfa Alfalfa research is mainly carried out at Lethbridge and Ste-Foy. Lethbridge focuses on selection for resistance to diseases, tolerance to acidic and saline soils, and persistence under grazing. The latest releases have been AC Dalton in 2007, which is well adapted to irrigated areas and British Columbia, and a salt-tolerant 20 CATTLEMEN / MAY 2012

Dr. Bruce Coulman variety, AC Bridgeview, released to SeCan last year. It takes four years to increase breeder seed to certified seed for sale. Coulman says Ste-Foy has the most integrated forage-breeding program in Canada with a team of several scientists including a breeder, plant physiologist, animal nutritionist and molecular geneticist. The breeding program is focused on persistence and winter survival based on molecular markers related to cold tolerance, disease resistance and persistence in the field. The Ste-Foy team is also breeding for improved alfalfa quality by selecting for higher concentrations of total non-structural carbohydrates that are the digestible sugars and starches as opposed to fibrous carbohydrates. A population has been produced and efforts continue to increase the amount of bypass protein. Bypass proteins break down

in the small intestine, reducing the potential for bloat. Twenty years of research at Saskatoon and Lethbridge led to Canada’s first bloat-reduced alfalfa, AC Grazeland, which has been commercially available since 2000. Some work on bloat reduction and increasing bypass protein continues at Saskatoon where the first lines to express condensed tannins in the leaves were selected. Tannins bind to soluble protein to slow down the rate of digestion in the rumen. The line tested at Lethbridge had lower digestion but was not winter hardy enough. Further crossing to increase winter hardiness produced new populations with lower (improved) carbon-tonitrogen ratio. But the concentration of tannins in the leaves will have to be increased considerably in order to have significant beneficial effects, so there is more work to be done, Coulman adds. Continued on page 22 www.canadiancattlemen.ca

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Continued from page 20

A U.S. company has successfully reduced the lignin content of alfalfa by 20 to 30 per cent and expects to release a new cultivar soon. Lignin is an indigestible component of plants so reducing the lignin content of forage increases its digestibility as cattle feed. Low-lignin lines would allow producers to delay harvest without sacrificing overall yield and quality and may reduce the total number of cuts required, thereby reducing stress on the plants. New developments, such as lowering lignin content and increasing condensed tannins, involve transgenic technologies. The future of this technology in Canada is largely tied to the industry’s evaluation of the impact of Roundup Ready (RR) alfalfa and other transgenic technologies on Canada’s forage industry. The CFGA has hired forage consultant Doug Yungblut to assess the impact of RR alfalfa on Canada’s forage industry. His report was scheduled to be released last month, after this

issue went to press. It will be published on the CFGA website at www. canadianfga.ca. Coulman also expects the recent sequencing of the genome of Medicago truncatula, a legume species related to alfalfa is going to lead to a lot of genetics research activity.

Grasses The meadow brome grass-breeding program, a joint effort of the U of S and Agriculture and Agri-Food Canada (AAFC) Saskatoon led to the release of AC Armada in 2008 and AC Admiral in 2009. Hybrid brome grasses were developed by traditional breeding methods, crossing smooth brome and meadow brome lines to create a dual-purposetype grass with the height and high first-cut yield of smooth brome and the fast regrowth of meadow brome. The first hybrid, AC Knowles, was released in 2000 and seed became commercially available in 2004. AC Success followed in 2003 and seed has been available since 2007. AC Success

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22 Cattlemen / May 2012

performs better under drier conditions, but not so well under irrigation. A new population, S9478, from crosses using southern-type smooth brome parents, is currently being evaluated at five sites in Canada and the U.S. and 2012 will be the second year of the three-year evaluation for potential registration. The crested wheat grass program at Saskatoon has released two varieties during the past decade: AC Goliath in 2001, and Newkirk in 2011.

Native grasses The Ecovars TM (ecological varieties) program was initiated by Ducks Unlimited Canada two decades ago and has involved AAFC, the University of Manitoba and the U of S from time to time. There is reasonably good demand for native grasses for revegetation purposes but the uptake by beef producers has been limited due to the cost of the seed. Species for which pre-variety Ecovars TM are available include northern wheat grass (AC Polar), green needle grass (AC Mallard), needle and thread grass (AC Sharptail), awned wheat grass (AC Sprig and Pintail), western wheat grass (WR Poole), little bluestem (Taylor) and nodding brome (AC Marten). Several species are under development, including the legume purple prairie clover and lowmaintenance, salt-tolerant species for turf grasses.

Forage cereals

Conference Agenda 8:30 a.m.

Registration

9:00 a.m.

Welcome

9:30 a.m.

Marketing Workshop

10:30 a.m.

EPD/ Genomics, Industry, Consumer Workshops

12:00 p.m.

LUNCH - Keynote Speaker

1:00 p.m.

EPD/ Genomics, Industry, Consumer Workshops

3:00 p.m.

Break

3:15 p.m.

Marketing Case Breakout Sessions

4:00 p.m.

Marketing Case Presentations

5:00 p.m.

Wrap up

Grain barley breeders at AAFC Brandon, Lacombe and Saskatoon have small barley-breeding programs. The forage oat and barley breeding at Saskatoon is done through the Crop Development Centre (CDC) at the U of S. In January of this year, Coulman and cereal breeders Brian Rossnagel and Aaron Beattie announced the registration of a new forage barley variety, CDC Maverick, and its release to SeCan for seed increase and marketing. It’s a smooth-awned version of the popular CDC Cowboy with high biomass and dry-matter yields that topped the Western Forage Barley Co-op trials by at least 10 per cent. The team also announced the release of its newest forage oat variety, CDC Haymaker that has seven per cent higher dry-matter yield and similar forage quality to CDC Baler. 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

Spring — my favourite time of the year! John McKinnon is a beef cattle nutritionist at the University of Saskatchewan

pring is an exciting time and nobody appreciates it more than Canadian cattlemen, particularly those in the cow-calf business. More and more, we are seeing producers move to late-spring or early-summer calving to minimize issues with scours and reduce the cost of buildings, labour and feed. As we approach this exciting time of year, you should take a few minutes to think about where your cows are in their pregnancy and how you are going to meet their nutritional requirements. When I talk with producers about feeding programs for the cow herd, I always stress two periods, the last eight weeks of pregnancy and the period from calving through to turnout on good-quality pasture (note the emphasis on good quality). Why the emphasis on these two periods? Simply put, they dictate the success of your calving program, your breeding season and ultimately the pre-weaning growth of your calves. If we focus on the post-calving period, we can identify three goals for our nutrition program. These include meeting the cow’s nutrient needs for milk production; ensuring she returns to estrus as early as possible after calving and that she conceives on first service. The average cow requires 20 to 40 days to recover from calving. Cows that come into the calving season in poor shape or lose significant weight or body condition after calving typically show extended periods of anestrous that can reach 60 to 80 days or longer. Issues with post-calving weight loss are compounded by the onset of lactation, a metabolic function that markedly increases the cow’s nutrient requirements. A 1,350-pound cow in the last month of pregnancy with no cold stress has a daily energy requirement of 16.0 pounds of total digestible nutrients [TDN; or 15 mega calories of net energy for maintenance (NEm)]. This same cow one month post-calving requires 17.5 pounds of TDN or 17 mega calories of NEm, an increase of 10 per cent. Daily crude protein (CP) requirements go from 2.1 to 2.8 pounds, an increase of 28 per cent. Other nutrients such as calcium, phosphorus, the trace minerals and vitamin A all show similar or greater increases in the postcalving period. The consequences of not meeting these increased requirements are striking! Cows will lose weight and depending on the degree of weight loss there can be a delay in returning to breeding status and first service conception rates

24 Cattlemen / May 2012

will suffer. Ultimately there will be an increase in the number of open cows in the fall. Meeting nutrient requirements during this period is going to come down to matching the cow’s requirements with the appropriate quantity and quality of feed. When forage quality is high (i.e. good quality alfalfa/grass hay), this is not that great of a challenge; however with poorer-quality forages such as a weathered grass hay or in situations where you have your cows out spring grazing stockpiled forage, you are going to need some type of energy and protein supplementation to meet these increased needs. There are lots of alternatives including supplementing with cereal grains, protein supplements such as canola meal or dried distillers grains or feeding a processed grain screening pellet. The key to success is recognizing the quality of the forage you have available for feeding during the period from calving through to pasture turnout (i.e. actively growing grass not the first flush of green growth) and matching forage supply/ quality with the appropriate energy and protein supplement. For example if our 1,350-pound cow (one month post-calving) was grazing stockpiled forage at 50 per cent TDN and seven per cent crude protein at two per cent of her body weight (DM basis), we would need to supplement five to six pounds of barley and a half a pound of canola meal or eight pounds of grain screening pellets (15 per cent CP) daily to meet her needs. Appropriate minerals are equally important during this period. We talked in past columns about the importance of minerals, so I am not going to go into them again. Just remember that many issues with open cows, or those that fail to clean or cycle or have poor conception rates can be traced back to an inadequate mineral, or in some cases, lack of a mineral. Having your cows on a free-choice mineral that meets both macro and trace mineral needs is simply good management and good insurance. Finally as we move into spring, don’t forget the bull battery. This is a great time to implement a feeding program that targets their optimal weight and condition at breeding and to ensure they are reproductively sound by working with your veterinarian. Young bulls (i.e. yearlings and two-year-olds) need special attention and should be gaining 2.0 to 2.5 pounds a day at this time to ensure they reach appropriate breeding weights. As with your cows, this does not happen without a sound feeding program! www.canadiancattlemen.ca

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VET ADVICE

Off the fence

he heat was just turned up in the antimicrobial resistant debate, especially about agriculture’s potential involvement. For years agriculture sat on the fence about its role in the whole scenario claiming the feeding of low levels of selected antibiotics for growth promotion is safe with no implications for human health. Now in the wake of Food and Drug Administration’s (FDA) recent announcement that in the U.S. government may ban agriculture uses of some popular antibiotics, the cattle, swine and poultry industry have switched their positions, stating drugs like penicillin and tetracyclines are not used for growth promotion, but rather for disease control. In a separate move, the FDA is expected to issue draft rules asking drug manufacturers to voluntarily end use of antibiotics in animals without the oversight of veterinarians, a move almost certainly to prove unpopular with both the livestock and pharmaceutical industries. What is especially disconcerting is that this has been precipitated by an organization only remotely aligned with agriculture, and in fact, often in open conflict with it. The fall from grace of agriculture and the veterinary profession on the AMR issue is embarrassing. Complacency put us on the fence; an environmental activist group knocked us off. The Natural Resources Defense Council (NRDC) is one of North America’s most effective environmental action groups, combining the grassroots power of 1.3 million members and online activists with the courtroom clout and expertise of more than 350 lawyers, scientists and other professionals. Yearly contributions to NRDC are in excess of US$90 million, an amount that shores up assets of US$180 million. The legion of NRDC associates is quite formidable. Let us not forget the Alar-on-apples scandal was ultimately debunked in the late 1980s. David Fenton, the instigator and an NRDC advocate, was unrepentant in claiming, “We designed (the Alar campaign) so that revenue would flow back to the Natural Resources Defense Council from the public, and we sold this book about pesticides through a 900 number and the Donahue show. And to date there has been $700,000 in net revenue from it.” Fenton’s company also masterminded the mad cow scare campaign. The decision regarding penicillin and tetracycline stems from a lawsuit filed by the NRDC last year. In the view of Peter Lehner, NRDC executive director, “For over 35 years, FDA has sat idly on the sidelines largely letting the livestock industry police itself. In that time, the overuse of antibiotics in healthy animals has skyrocketed — contributing to the rise of antibiotic-resistant bacteria that endanger human health.” The order issued by Judge Theodore H. Katz of the Southern District of New York effectively restarts a process started by the FDA 35 years ago. In his view, the FDA in 1977 concluded that feeding animals low doses of certain antibiotics used in human medicine, namely

26 CATTLEMEN / MAY 2012

penicillin and tetracyclines, could promote antibioticresistant bacteria capable of infecting people. In the intervening years, the scientific evidence of the risks to human health from the widespread use of antibiotics in livestock has grown. Citing the threats to human health by overuse of antibiotics in animals, Katz ordered the FDA to start proceedings to withdraw approval for the agricultural use of penicillin and tetracycline to promote animal growth. The order did not extend to disease prevention. “Drug manufacturers will finally have to do what FDA should have made them do 35 years ago: prove that their drugs are safe for human health, or take them off the market,” NRDC attorney Jen Sorenson said in a news release. The ruling compels FDA to take action on its own safety findings by withdrawing approval for most nontherapeutic uses of penicillin and tetracyclines in animal feed, unless the industry can prove in public hearings that those drug uses are safe. It went on to emphasize the fact that while the FDA is engaging in other ongoing regulatory strategies, it is not relieved of its statutory obligation to complete withdrawal proceedings. Costs associated with regulatory review, generation of additional safety data, examination of dosage protocols, and potential changes in labelling, packaging and distribution will probably spell the demise of these antimicrobials and others routinely used in animal and poultry production. Changes in how Canada handles and uses these same compounds will follow — dictated by trade and North American dynamics of the animal drug market. It is a precedent-setting move that is about to invalidate, at least temporarily, any position of leadership the livestock industry and the veterinary profession thought they owned in the whole AMR issue. There is no question that AMR puts many humans at risk. Joseph Marshall, author of THE LAKOTA WAY, says leaders should fit the requirements set by the group or community they serve while influencing the actions and attitudes of others. There are four implicit maxims of leadership: know yourself, know your friends, know the enemy, and lead the way. It is imperative for those of us in a position to directly influence matters associated with antimicrobial resistance do a better job of all four. It is particularly important for all to understand the less we complicate the standards and processes by which leaders are expected to function, the more success is possible. Collective acceptance of what the outcome should be is a start. Perhaps, today’s “metaprophylactic” approach to managing respiratory disease in feedlots should occupy a higher position of importance than balking at the use of penicillin and tetracyclines. 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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RESEARCH

MIX IT UP …if you want better green feed

ased on one year’s results the Peace Country Beef and Forage Association (PCBFA) says a mixture of annual crops grown in strips produces better green feed than single crop stands. The crops were seeded side by side with a 10-foot Agrowdrill in alternating 20-foot strips then swathed across the plot to obtain the forage mixtures, says PCBFA program co-ordinator Akim Omokanye. Samples cut from individual crop strips before swathing served as a check. In all they compared barley-peas-oats; barley-peas-canola; barley-canolaoat; barley-canola; and oat-canola mixtures. In May 2010 a 10-acre plot was direct seeded into killed sod in a 10-year-old mixed pasture on the ranch of John and Jean Milne near Fairview. Unfortunately drought wiped out this first trial. In 2011, the strips were seeded direct on May 24 without a glyphosate burn-off with 100 pounds per acre of 28.26.0 (sulphur). The peas received a granular inoculant. The strips were premeasured beforehand so each crop could be seeded at one time but Omokanye suggests anyone trying this at home should use a drill with several seed compartments to allow sowing two or three crop varieties at the appropriate rates. The plot was swathed August 18 at the soft-dough stage for barley, the late-milk to early-dough stage for oats, and mid-pod stage for canola and peas. Omokanye says this mid-pod stage is the ideal time to cut canola and peas for hay or to dry down for green feed, but it was a little past the ideal time for oat green feed.

Yields Overall, swathed mixtures didn’t yield any more dry matter (DM) per acre than individual crops. The DM yield was highest for the pea strips at close to 7,500 pounds per acre, and the combinations that included a pea strip. Omokanye estimates peas contributed about 40 per cent of the total forage DM yield in the barley-pea-oat 28 CATTLEMEN / MAY 2012

Canola, barley, peas and oats were seeded in 20-foot strips. combination and the barley-pea-canola combination. At 6,943 pounds DM per acre, the barley-pea-canola combination yielded the best of all of the combinations and the oat-canola combination had the lowest yield at 5,702 pounds per acre.

Crude protein As expected canola tested 16.5 per cent crude protein (CP) with peas close behind at 14 per cent. Of the combinations, the barley-canola-oat forage had the highest CP level at 12.5 per cent. This is well above the seven to nine per cent CP requirement for beef cows at all stages of gestation and meets the 10 to 11 per cent recommended for cows post-calving. All the intercropping strips ran 10 per cent CP or better. Cereals alone ranged from eight to nine per cent.

Energy None of the combinations provided enough energy to maintain the body condition of mature beef cows through late gestation and after calving. Beef cows require a TDN of 55 per cent in mid-gestation, 60 per cent in late gestation and 65 per cent post-calving. Mixtures ranged from a low of 55.7 per cent TDN for barley-pea-oats to 59.6 per cent for the barley-canola combination. Pea forage tested 61 per cent, barley 60, canola 58 and oats 56 per cent.

Fibre Neutral detergent fibre (NDF) indicates how much of a forage cattle can consume. A cow’s digestive system can handle only 1.2 per cent of her body weight in fibre before she feels full. As

NDF increases, the amount she is able to consume decreases. The NDF of pea forage, at 45.55 per cent, and canola forage at 54.27 per cent were significantly lower than the 60.70 per cent for barley and 69.97 per cent for oats. Omokanye says the high NDF for the oats probably reflects its maturity when cut. The NDF of all crops increases with maturity. As a result, the barley-pea-oat forage had the highest NDF rating of the mixtures at 67.82 per cent; barley-canola was the lowest at 55.88 per cent. Acid detergent fibre (ADF) reflects the percentage of a forage that is not digestible. A high ADF content translates to lower feed quality. Peas at 34 per cent and barley at 36 per cent contained the least ADF. Canola was 40 per cent and oats 44 per cent. Including pea didn’t always reduce the overall ADF of the combinations, but canola did. Barley-canola forage tested 37 per cent ADF, the least of all the combinations; barley-pea-oats was the highest at 45 per cent.

Minerals In every combination, peas and/or canola improved the calcium (Ca) and phosphorus (P) levels of the forage compared to cereals alone. The P content of all the combination forages met the requirements (0.22 to 0.25 per cent) for mature cows in every stage of gestation, while barley and pea forages fell short. Combinations including oats had the highest P content. All of the combinations as well as peas and canola far exceeded the Ca needs (0.18-0.31 per cent) of dry, pregnant and lactating beef cows. Barley www.canadiancattlemen.ca

and oat forage fell short. Combinations including canola had the highest Ca content. The critical factor in balancing rations is the calcium-to-phosphorus ratio (Ca:P), which should be within 2:1 to 7:1. Even though the Ca and P content of all of the combination forages met the requirements for those minerals, the ratio was very low, from 1.23:1 to 1.96:1 and would need to be remedied with other feeds or commercial minerals, says Omokanye.

Overall Barley-pea-canola forage produced the highest yield and the barley-canola mixture was best for feed quality. Of all the combinations it had the highest CP and TDN, a Ca:P ratio that was almost balanced at 2:1, and the lowest ratings for ADF and NDF. The PCBFA is a non-profit, producerdriven, applied-research association focused primarily on forage and beef research. For more information, contact the PCBFA at 780-835-6799. C â&#x20AC;&#x201D; Debbie Furber

Then they cut across the strips to obtain the different mixed rations.

Overcoming challenges from the ground up. Be part of this yearâ&#x20AC;&#x2122;s most dynamic conference on Beef and the Beef cattle industry. The International Livestock Congress Beef 2012 Wednesday august 15, 2012, deerfoot inn & casino, calgary for more information and to register for the ilc visit www.ilccalgary.com for more information on the cca semi annual meeting, august 14-17, 2012, visit www.cattle.ca www.canadiancattlemen.ca

CATTLEMEN / MAY 2012 29

We encourage commercial producers to attend the WHC cattle events in Olds, Alberta. The cattle shows are open to the public and no registration is necessary. If you would like to register for meal plans or any of the other WHC activities taking place from July 8 to July 24 please visit www.hereford.ca for details.

World Hereford Conference Schedule Tuesday, July 8 – Thursday, July 12 Pre Conference Tour Friday, July 13

World Hereford Council meeting and Technical Sessions - Sheraton Hotel, Calgary, Alberta

Saturday July 14 Technical Speakers Session - Palomino Room, Calgary Stampede Park Sunday, July 15

Free Day to attend the Calgary Stampede

Monday, July 16

National Junior Bonanza Cattle Show - Olds Agricultural Society Grounds, Olds, Alberta

Tuesday, July 17

National Hereford Open Show - Olds Agricultural Society Grounds, Olds, Alberta

Wednesday, July 18 Rancher Day, Hereford Pen Show - Olds Agricultural Society Grounds, Olds, Alberta Thursday, July 19 - Tuesday, July 24 Post Conference Tour

Canadian Hereford Association • 5160 Skyline Way NE, Calgary, AB T2E 6V1 1-888-836-7242 • www.hereford.ca

World Hereford Conference Technical Speakers Sessions - Day 2 Saturday, July 14 - Palomino Room - Stampede Park

The Technical Conference is open to the public with a $100.00 registration fee per person. Attendees must register prior to June 1st. Please contact Monica Hillis by email at monica.hillis@tieronetravel.com or by phone at 1-866-703-3041. 9:00 a.m.

Official Opening and White Hat Presentations to special guests * March in of Country flags by Juniors from represented countries with Piper and RCMP member in Red Serge. * Welcome Chairman Jay Cross & Secretary General Jan Wills * Speeches - Stampede officials - CHA President - CJHA President - Government Dignitaries * White Hat Ceremony – Presentation to about 25 persons

10:00 a.m. Coffee 10:30 a.m. Robert Meijer: President, Canada Beef Inc. * Review and forecast of Beef Industry Trends on a world basis. 11:00 a.m. Dr. Steve Miller: Associate Professor, University of Guelph, Faculty of Animal & Poultry Science * Meat Tenderness - Genomics / Research / Consumer Trends 11:00 a.m. Dr. Dorian Garrick: Professor of Animal Science, Iowa State University * 50 K SNP Hereford Panel program/Horned, Polled Scurred DNA SNP panel update. 12:00 p.m.

Lunch

1:15 p.m.

Dr. Dave Daley: Program Coordinator/Professor, Chico College of Agriculture * Heterosis in Beef Cattle

1:45 p.m.

Dr. Robert Weaber: Assistant Professor of Animal Science, University of Missouri * Economics of Docility in Beef Cattle

2:15 p.m

Dr. John Basarab: Beef Research Scientist, Lacombe Research Centre * Feed Efficiency in Beef Cattle

2:35 p.m.

Coffee

2:50 p.m.

4:00 p.m.

Dr. Kee Jim: Managing Director of Feedlot Health Management Services Ltd., Okotoks * Feed Efficiency in Feedlot Cattle / Carcass Trait Research Stan Jacobs: * Hereford breed strengths – cow-calf production Dr. Jay Cross: * Closing comments Jan Wills: * Closing comments Adjournment to the Calgary Stampede UFA Classic Steer Show

6:00 p.m.

Dinner – Rangeland Tents

7:30 p.m.

Chuckwagon Races and Grandstand Show

3:20 p.m. 3:40 p.m. 3:50 p.m.

HEALTH

REACT FAST TO GRASS TETANY

pringtime brings risk for metabolic/nervous system problems brought on by acute magnesium deficiency. This condition has been called tetany, grass staggers, and milk tetany. It mainly affects mature cattle grazing lush forage and is due to deficiency of magnesium in the bloodstream and the cerebrospinal fluid that surrounds the brain and spinal cord. Calves are rarely affected. Mature animals are more susceptible because they are less able to quickly mobilize magnesium from their bones to meet the body’s needs, and also have a reduced ability to absorb this mineral. Low blood levels of magnesium can occur in all age groups, however, and in both sexes under certain conditions, but is most common in lactating cows — beef or dairy — in the first 60 days of lactation. Older, heavier-milking cows are most at risk, especially when grazing immature cool-season grasses and lush early growth. Grass tetany can also occur in late pregnancy if forages are low in magnesium, or when certain other nutrients such as potassium and protein/nitrogen interfere with adequate absorption and utilization of magnesium in the body. When cattle are first turned out on lush pasture in the spring, for instance, the relatively high level of potassium and protein in immature grasses may tie up availability of calcium and magnesium. Steve Hendrick, an associate professor at the Western College of Veterinary Medicine in Saskatoon says he most commonly sees tetany in a lactating beef cow that becomes deficient when she’s putting more minerals into her milk than she’s taking in. “Cereal grain forages or lush, fast-growing grass pastures tend to be lower in magnesium. Rate of plant growth and moisture content can be factors; plants are taking in more water, compared to mineral uptake from the soil,” he explains. “Grass tetany also tends to be associated with stress. If cattle have been transported to the pasture, for instance, this may push them over the edge, precipitating a problem,” he says.

Clinical signs “You may only notice salivation (drooling) because the cows can’t eat 32 CATTLEMEN / MAY 2012

quite as well as they normally would. Signs may be mild, or more obvious (staggering, having trouble walking) or so severe that the cow is down and can’t get up. Symptoms are similar to tetanus in that there are muscle spasms and convulsions,” says Hendrick. These signs are similar for both grass tetany and milk fever (calcium deficiency). “In early stages of milk fever you also see some twitching and the cow may also be hyper-excitable. If allowed to progress untreated, the cow may die,” he says. The muscles needed for breathing don’t work, and the cow suffocates. The signs come on quickly and the cow should be treated as soon as possible. “The timeline between onset of signs and death may be just a few hours. How severe the signs are (and whether the cow dies soon or survives longer) depend on several factors, including how deficient the forage is, the cow’s past mineral status, etc.” If you find a down cow soon after calving, grass tetany or milk fever could be possible causes. “These cows can have seizures and show neurologic signs and go down. If you are in an area where rabies has been a problem, be sure you have a proper diagnosis,” says Hendrick. “Calves can be affected, but mainly it’s stocker-age calves, rather than suckling calves. While they are still on the dam, young calves’ requirements are generally met. The dam sacrifices her own mineral status and puts it into her

milk.” But stocker calves should be closely monitored if they are grazing pastures that might be risky.

Prevention If you know pasture might be deficient, cows can be supplemented with magnesium. “We try to look at this when balancing the ration. Calcium, magnesium and potassium are the three minerals we need to pay attention to. What we find here in our area is that potassium in forages can be a big issue if too high (greater than 2.5 per cent). So we calculate a tetany ratio, looking at the level of potassium and dividing that by the total of calcium and magnesium,” says Hendrick. “It’s not just a matter of potassium tying up the available calcium, but also how it relates to the pH of the body. It is a bit complicated, but nutritional considerations are not just having low amounts of magnesium in the forage. The tetany ratio can help a person figure it out.” Sometimes producers run into problems other times of year. “We run into this occasionally when someone harvests green feed and bales it up quite early in the season. The cows may be eating this stored forage later in the year, but it was short of magnesium at harvest,” explains Hendrick. “Some producers ran into cases of both grass tetany and milk fever in cattle that were fed forages harvested early due to drought.” Growing conditions can be a big factor, along with www.canadiancattlemen.ca

fertilization in altering the levels of magnesium in the pasture.

Treatment It’s important to give the cow magnesium as soon as possible. “The common way to do this is to administer magnesium oxide, usually about 60 grams of powder (mixed with water), given orally. Many of the calcium preparations for milk fever contain magnesium as well, so these could be given. Some cows may be short on both. This combination product (500ml bottles) are typically given IV,” says Hendrick. “Unfortunately, by the time we see these cows, they are often down, and

An unusual incident Dr. John McKinnon, a nutritionist and beef industry chair at the University of Saskatchewan, tells of an incident in Western Canada when a large number of cattle when down. “In 2002 we had severe drought and many producers that year turned to putting up green feed for winter. That particular winter, in northwestern Saskatchewan, there was an outbreak of down cows as they approached spring calving,” he recalls. “Dr. Tom Smith, with Lakeland Veterinary Services in North Battleford was dealing with more than 50 herds affected by this problem. Symptoms resembled milk fever, but were unusual because of the very rapid onset in cows that had not yet calved. Milk fever generally occurs at or shortly after calving. These cows were going down about two to three weeks prior to calving. It wasn’t a clear-cut case of milk fever,” he explains. “These cows had nervous signs and

you need to treat them very quickly.” A cow may be difficult to handle and restrain for treatment if she’s out on pasture and isn’t down yet. She might have trouble travelling, but may still be hard to handle. Some mild cases recover on their own. “There may be some cattle whose blood levels get low enough to be borderline, for a period of time, but then they start eating again and get enough magnesium to recover. If it gets bad enough that the cow goes down, however, you must treat her to save her,” he explains. “Producers should also be aware that the cow might improve with treatment and then relapse. You need to monitor many of them soon went into a coma. They were treated with electrolytes and solutions you’d give to cows with milk fever (products which often contain both calcium and magnesium). The difference was that these cows needed huge doses — as opposed to the normal treatment for milk fever, which would have been one or two bottles of the solution. In these cases, cows had to be treated with five or six bottles in order to save them,” says McKinnon. “Then the producers, with assistance from the local Saskatchewan Ministry of Agriculture, began mineral supplementation, supplying up to three ounces of limestone daily per cow and one to 1.5 ounces of magnesium oxide provided free choice. This pretty much stopped the problem,” he says. When the veterinarian took blood samples from downed animals, and from herd mates not yet showing signs of tetany, blood magnesium levels were

the cow. Usually you see improvement within a couple hours of treatment; response is fairly swift. But in some cases the cow might go down again; about 20 per cent of them relapse,” he says. “Absorption of magnesium can be slow, especially if given orally. If things aren’t moving along normally in the gut and you just give an oral drench, it will take awhile for it to get absorbed — so it’s a good idea to give some of it by IV.” Some people also give part of the fluid (that you’d give orally) by rectum (like a deep enema), because cattle can absorb a lot of fluid/minerals in the hindgut. This can often be easier for a producer to accomplish than giving an IV. C — Heather Smith Thomas normal in both groups, but calcium and phosphorus levels were low, particularly in affected animals. “It didn’t look like a clear-cut grass tetany situation, but more of a calcium deficiency,” explains McKinnon. After analyzing the feed, it was felt that the calcium deficiency was caused by high levels of potassium in the feed. “Several factors can lead to high potassium levels in green feed. One is the use of nitrogen fertilizer or manure; the plants accumulate potassium. Another aspect is the drought. Plants were growing slower than normal, with more time to accumulate a lot of potassium. “That year, we were dealing with severe drought. We think the high level of potassium that accumulated in the forages led to the imbalance that in turn led to the milk fever-type condition we were dealing with. But it wasn’t a classic milk fever situation,” says McKinnon.

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Cattlemen / May2:48:31 2012 3/21/2012 PM 33

IDENTIFICATION

ONE DATABASE FOR NATIONAL ID Officials are looking to put ATQ and CCIA data under one roof

Steve Primrose

Darcy Eddleston

Pat Hayes

fforts by an industry-led initiative to create one centralized database for tracing cattle in Canada may become evident as early as this year, says the organization behind the project. The Canadian Agri-Traceability Services (CATS) steering committee aims to combine the Canadian Cattle Identification Agency (CCIA) and Agri-Traçabilité Québec (ATQ) databases. Discussions began late in 2010 when members from CCIA and ATQ met in an attempt to develop a better understanding of one another’s organizations. Up until then, talks about creating a centralized system had been dominated by East-West politics. ATQ director Guy Auclair co-chairs the CATS committee with Steve Primrose, who formerly represented the Canadian Livestock Dealer’s Associ-

ation on the CCIA board. “Once we had an understanding of how they were doing it in Quebec and they got an idea of Western Canada… we wanted to figure out a way that we could work together. That’s how it started,” says Primrose. “People know that we’re talking, but they’re not quite sure what we’re talking about,” he adds. Among the questions being asked are will ATQ and CCIA amalgamate, and what could a centralized database mean for producers? While CCIA is recognized as the national administrator of livestock traceability in Canada, ATQ provides those services in Quebec. Three members from each agency sits on the CATS committee plus one representative from Alberta Agriculture, Agriculture and Agri-Food Canada and the Canadian Food Inspection Agency. Despite the government presence Primrose says industry is driving the process. “It’s industry that will put the plan together. They will implement the plan and government will support it financially because it’s for the protection of our national herd.” As for what a national database might look like, that is the subject of several ongoing studies into the latest technology. “It’s still early on and we’re still in the discussion phase and picturing how this would work,” says CCIA chairman Darcy Eddleston. “We think this is a perfect time to examine what’s out there for traceability and what’s best for the Canadian producers.”

The steering committee hopes CATS will end up as a multi-species database serving other livestock sectors such as equine, poultry and swine. “The way we envision it is that each species would negotiate with CATS (for) the services they require,” says Eddleston. A multi-species database would spread out the costs of offering a nationwide service. But hog producers, for one, are on the cusp of implementing PigTrace, a national tracking system for hogs housed on the ATQ computers that the Canadian Pork Council (CPC) has been crafting since 2002. Even so, Jeff Clark who manages PigTrace admits the CPC is interested in a multi-species database as it would lessen competition among producers for federal dollars. “I’ve acknowledged, with other livestock groups, that we’re really competing with each other over the same pot of money and it would make a lot more sense both as program administrators and as a taxpayer to consolidate efforts, minimize costs and minimize confusion for our producers,” he says. Primrose agrees: “These days there isn’t a lot of money to go around so this is a good solution for everybody.” But he is quick to point out that this is not an amalgamation of existing agencies. “It’s an entirely new entity,” he says. “CCIA would stay the national administrator for cattle, but we would dump our information into the new database and ATQ will dump their information into the new database.”

34 CATTLEMEN / MAY 2012

www.canadiancattlemen.ca

Saskatchewan cattleman and a Canadian Cattlemen’s Association representative on the CCIA board of directors, Pat Hayes says his support for a centralized database will depend on how it benefits producers down the line. He wants to see any cost savings used to reduce the tagging costs of the national program. “We don’t want to see that raised on the producer’s end.” It costs between $3 and $5 to tag an animal, which doesn’t account for the time spent tagging or registering the data with CCIA or ATQ. Eddleston says several studies are currently underway to determine the true cost of traceability in Canada. “There have been a couple of studies out there but nobody’s really sure if they’re right,” he says. While Primrose admits a centralized database may not be a miracle cure it should help shorten the time needed to track diseased animals. “This isn’t the silver bullet, but I’ll tell you that if you have a strong system in place in Canada it certainly won’t hurt. It may not keep a border open if you have a feed contamination

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“ This is not an amalgamation of existing agencies. It’s an entirely new entity.” — Steve Primrose issue, or it might, as long as you can get to where those cattle are quickly,” he says. “From my perspective the whole traceability thing has been oversold,” says Hayes. “It may keep us in markets but I don’t see it opening markets for us.” Eddleston believes a jointly operated centralized database should improve the level of service available to producers across Canada. Calls placed by producers could be forwarded to eastern or western bilingual service centres. “So if I’m a western producer I can call at 6 a.m. and there might not be anyone at the western

service centre but then my call could be forwarded to the eastern service provider,” he explains. Before CATS can proceed, various business and governance plans need to be approved by the ATQ and CCIA boards. “It gets pretty complicated about how all this will roll out but our goal is to try to come to a conclusion,” says Eddleston. “We have to come up with a dropdead date and ask whether we’ll go ahead with this or not. We’re not even sure what it is yet, but we have to come up with that date and then all the steps involved with moving this forward,” he says. At the end of the day, Hayes says he wants to see what a centralized database will cost producers. “We may get some benefits down the road and if there are then so be it, but I don’t believe in making an enormously expensive system on what we might get. We better make a system that doesn’t download a whole bunch of costs on to producers.” C — Julielee Stitt

Cattlemen / May 2012 35

HOLISTIC RANCHING

Grazing 2012

e can all benefit from To determine how many pastures you need to decide better management decithe length of the graze period you are going to use and sions. One of the areas the recovery period you want. where the potential benLet’s start with a graze period of five days and a efit is the greatest is in the area of grazrecovery period of 75 days. The formula to determine ing management. Let’s review some of the number of pastures you will require is: the recovery the benefits of planned grazing. period/graze period + 1. So 75 (recovery period) / 5 1. Increased grass production from a (graze period) + 1 = 16 pastures. Using this formula a set land base. one day graze period and 75-day recovery period would 2. Healthier, more fertile land. require 76 pastures. 3. Lower costs and more profit. The more grass you are able to leave behind the bet4. Increased drought and flood resistance. ter. However you need to allow for full recovery. This 5. A more profitable, sustainable business. means that you modify the recovery period based on If these benefits are of interest to you read on. the growing conditions you are experiencing in any Planned grazing is a planning process we use in given year. In a year with poor growing conditions you H.M. We use our animals as a tool to help us achieve will slow down, graze more severely and increase the our landscape goal. Everyone will have a unique goal recovery period. In a year with good growing condibut in general terms it will usually include something tions you will speed up, graze less severely and decrease like “leave the land better than we found it.” the recovery period. Allan Savory recognized that overgrazing is a Achieving full recovery is the single most important function of time. It is not due to too many animals. aspect to proper grazing. Overgrazing is due to staying too long at one time or If you want to leave a certain amount of litter on the returning too soon. When we control the time we can land, fine. However, do this by changing your stocking stop overgrazing. Once we stop the overgrazing our rate, not your recovery period. animals are beneficial to the land. The key to having the proper recovery is to monitor Planned grazing mimics the rate of regrowth in the pasa large herd of buffalo. We ture where you started grazwant to graze a pasture using ing. Monitoring the regrowth We want to graze a pasture a short graze period, a high will allow you to adjust the stock density, and a recovery using a short graze period, a recovery period to the condiperiod that allows full recovtions you are experiencing. high stock density, and allow ery of the plants. The best indicator that The graze period is the growth has started is to monifor full recovery of the plants tor the poplar trees in your amount of time animals are allowed to graze a pasture at area (if you don’t have poplars one time. Stock density refers to the number of animals pick another species). When the first green leaves appear per acre for the graze period. The recovery period is the it is a sign that growth has started. There will be some number of days between grazing. growth before this but I don’t think it will be significant. The shorter the graze period is the better. To get Mark this date down and begin moving your animals, started you might graze three to five days. When you don’t stop until there is a killing frost in the fall. move your animals in this time frame there will be little In summary, manage your animals to have a short or no overgrazing. As you gain experience it is likely graze period, three to five days. Use as high a stock denyou will want to shorten your graze period to one day sity as possible. Monitor the regrowth and adjust the or possibly even less. recovery period to achieve full recovery of the plants. The higher the stock density the more beneficial it Determine a date when growth starts by watching the will be for your land. The level your use will be related poplar leaves. to the labour you have available and the importance Following these simple steps will help you achieve you place on land improvement. the positive results out lined at the start of this article. Full recovery is critical. In most areas this requires Remember there is only one opportunity each year to 60 to 90 days. In some areas it may mean grazing only improve your grazing management. Is this the year you once in the growing season. A recovery period of 75 will choose to improve your management? Good mandays might be a good place to start. As you gain expeagement pays. Have a great grazing season. rience you can adjust the recovery period to fit your Happy Trails operation. — Don Campbell The best indicator that a plant is fully recovered is when it is ready to flower. At this stage of growth the Don Campbell ranches with his family at Meadow Lake, plant can be grazed a second time with no detrimental Sask., and teaches Holistic Management courses. He can be effects. reached at 306-236-6088 or doncampbell@sasktel.net.

36 CATTLEMEN / MAY

www.canadiancattlemen.ca

BEEF WATCH

MAY 2012

A service for cattle producers from the Canadian Cattlemen’s Association and CATTLEMEN magazine

The January 1, 2012 cattle inventory reports showed stabilization in the Canadian industry and a drought-plagued south reducing the U.S. cow inventories. Improvements in production efficiencies raise the question on if herd expansion is really necessary in the current demand climate.

CANADIAN INVENTORIES The January 1, 2012 cattle inventory report showed total inventories up 0.5 per cent or 58,000 head at 12.5 million head. This is the first year over year increase since inventories peaked in 2005. The increase in total inventories came from a 1.5 per cent increase in steers (>1 year) and calves were up 1.6 per cent. Higher feeder numbers in Canada were due to a 54 per cent drop in feeder exports to the U.S. Feeder exports at 100,070 head in 2011 were the lowest since 1995 (excluding 2004 when the border was closed). While total inventories were up, beef cow inventories were down one per cent or 44,600 head to 4.23 million head and are 20 per cent below the 2005 peak. Due to weather conditions (drought or flooding) cow numbers have declined at different rates between the provinces over the last six years. Beef cows in British Colombia were up CANADIAN CATTLE INVENTORIES January 1 (’000 head) Thousand head 2011 2012 Bulls 222.2 221.2 Beef cows 4,273.0 4,228.4 Dairy cows 983.1 985.3 Dairy heifers 443.1 444.1 Beef heifers (breeding) 531.6 554.3 Beef heifers (slaughter) 844.0 839.5 Steers 1,081.7 1,098.1 Calves 4,078.3 4,144.1 Total 12,457.0 12,515.0

% change -0.5% -1.0% 0.2% 0.2% 4.3% -0.5% 1.5% 1.6% 0.5%

Source: Statistics Canada

Canadian Total Cattle and Calves

U.S. CATTLE INVENTORY U.S. beef cow inventories were down three per cent at 29.9 million head. This was the largest annual decline since 1986 when beef cows contracted by 4.7 per cent. Since 1996 beef cow inventories have declined by 15.4 per cent but cattle slaughter has only declined by 6.8 per cent and beef production has actually increased three per cent. The smaller decline in slaughter numbers has been due to higher calving rates, improved calf survival and faster growing cattle that provide higher output from the same-sized herd. Carcass weights for all cattle have increased from 575 lbs. in 1957 to 773 lbs. in 2011. The southern states which have a large proportion of the U.S. cow herd contracted the most with severe drought Continued on page 38

U.S. CATTLE INVENTORIES January 1 (million head) Million head

2010

2011

2012

Yr./Yr.

Total cattle

93.9

92.7

90.8

-2.0%

All cows

40.5

39.1

-2.3%

Beef cows

31.4

30.8

29.9

-2.9%

Dairy cows

9.1

9.2

1.1%

Heifers >500 lbs.

19.7

19.6

19.4

-1.0%

Beef repl. heifers

5.5

5.1

5.2

2.0%

Dairy repl. heifers

4.5

4.6

4.5

-2.2%

Other heifers

9.8

9.9

9.6

-3.0%

Steers >500 lbs.

16.5

16.4

16.1

-1.8%

January 1

-4.1%

Cattle-on-feed ALL sizes

13.6

14.1

0.7%

1906

www.canadiancattlemen.ca

-1.1%

25.7

35.3

26.8

35.7

27.6

35.7

Feeder/calf supply 84

Calf crop 78

-3.4%

14.1

14.6

Calves <500 lbs.

-4.5%

2.1

2.2

Bulls >500 lbs.

Million head

1.6 per cent but still 36 per cent below the 2005 peak. Beef cows in Alberta were down 1.5 per cent and 21 per cent below the 2005 peak. Saskatchewan numbers were down 0.5 per cent and are 16 per cent below the 2005 peak. Manitoba numbers were down 0.9 per cent and are 23 per cent below the peak while Ontario’s numbers were down 1.6 per cent and 22 per cent below the 2005 peak. Despite cow inventories being the smallest since 1994 the difference in beef production has not been that great. Productivity gains from reproductive efficiency increasing from 81 per cent of cows calving to 92 per cent and carcass weights increasing 12.7 per cent from 760 lbs. to 857 lbs. mean that total beef production was seven per cent larger in 2011 than in 1995.

Source: USDA

CATTLEMEN / MAY 2012 37

BEEF WATCH

The Cattle Cycle The cattle cycle usually has two to three years of what is called a consolidation or stabilization phase where national inventories are relatively stable before moving into expansion. Although higher prices for calves are expected to encourage expansion, competition for land from high grain prices, a shift to more stocker operators and some labour pressure related to producer demographics will likely moderate the growth of the beef cow herd compared to previous cycles and potentially make the consolidation phase longer. So where will the inventories be in five years? If a typical cycle is followed and 2012 is considered the first year of stable numbers, expansion in fed cattle supplies would be seen in 2015 and inventories would peak in 2019. But if expansion in the beef cow herd is not seen until year four with a prolonged consolidation phase, there will only be one year of larger calf numbers for the 2017 production year.

The Cattle Cycle Peak

110

Cattle Inventory

Production

54,000

1,050

53,000

1,040

52,000 1,030

51,000 50,000

1,020

49,000

1,010

48,000 47,000

105

Inventories

World Cattle Inventories

Million head

in the region sending cows to slaughter or to other states for feeding. Beef replacement heifer numbers were up 1.4 per cent at 5.2 million head. However, this was in a limited area with available feed with improved pasture conditions required in the south before any restocking takes place. Overall, smaller North American inventories are being offset by improved production efficiencies. However, U.S. beef production is projected to decline by 4.7 per cent in 2012, but per capita consumption is projected to decline by 5.7 per cent as supplies continue to chase falling demand, making cattle prices dependent on population growth and export demand for price support.

nals is affected by weather conditions, competition for acres and relative profitability compared to other commodities. Australian beef cow inventories have been growing slowly over the last three years with year-over-year increases between zero and three per cent. At 13.3 million head the Australian herd is the largest since the mid-1970s. Drought tends to be the main limiting factor in the Australian herd. New Zealand beef cow numbers were up 2.6 per cent on January 1 after four years of decline. Argentina has seen large liquidation since export restrictions were put in place in 2006 with their beef cow numbers down 3.15 million head. However, reduced supplies have finally pushed prices up domestically and inventories increased 1.7 per cent on January 1. This dramatic reduction in inventories has resulted in severe over-capacity in their feedlot and packing sectors with several operations closing. Brazil saw a large jump in cattle prices after 2008 when domestic supplies were shorted after several years of low cattle prices. However, producers have been cautious with expansion being only one to three per cent per year since. This slow growth is partly due to the strong competition for acres as cattle have moved out of the highly productive areas in the south, as land there is used for grain, and moved north. On a longer grass-production system the first increase in the calf crop is expected to come to market in 2012-13.

Thousand tonnes (cwt)

Continued from page 37

12p

1,000

100

TRADE AND CONSUMPTION DOWN

95 90 85 80

Consolidation

Liquidation

Expansion

5 Year 6

GLOBAL INVENTORIES STEADY When combined the U.S. and Canadian beef cow herds total 35.6 million head, down 0.3 per cent on January 1. Inventories have stabilized over the last couple years with the North American herd down only two per cent since 2009. In a global marketplace, other exporting countries are responding to the same market signals that North America is in stabilizing their herds and moving into expansion mode. How fast each country responds to those market sig38 Cattlemen / may 2012

In 2011, Canadian beef exports were down 17.6 per cent in volume and 6.5 per cent in value closing the year at 337,000 tonnes at $1.3 billion. Lower exports are directly attributed to smaller production as the domestic market took priority. Canadian beef imports were up 19.5 per cent with all of the increase happening in the second half of the year. Higher imports came from the U.S. (up 24 per cent) with non-NAFTA imports down nine per cent as other markets proved to be more attractive than North America. Overall lower production was offset by even lower exports and larger imports leaving net beef supplies in Canada basically steady. Slight growth in population meant, per capita beef consumption was down 1.4 per cent in 2011. Smaller consumption was expected with retail prices up 2.5 per cent; however the decline was less than anticipated resulting in beef demand being up 0.6 per cent showing a remarkably resilient Canadian consumer. www.canadiancattlemen.ca

Beef Watch is prepared by the staff of Canfax and Canfax Research Services, divisions of the Canadian Cattlemenâ&#x20AC;&#x2122;s Association

REPLACEMENT RATIOS CONTINUE TO CLIMB

BEEF COW CULLING RATES With cow slaughter down 12 per cent during 2011 at 540,000 head, demand stayed fairly stable throughout the year, ranging monthly between $61-80/cwt. Even with a 40 per cent increase in slaughter volume fourth quarter over third quarter, the lows for the year were not posted in November as the seasonal trend would typically suggest, but instead were noted early on in January 2011. In addition to lower cow slaughter through 2011, exports of slaughter cows to the U.S. were down 39 per cent. The beef cow culling rate came in very close to projections to settle at 9.7 per cent, continuing the decline seen in the culling rate since 2008. This is the first time since 2006 the beef cow culling rate has come in below 10 per cent and gives further evidence to suggest the industry has been in the consolidation phase of the cattle cycle. Moving into 2012, cow prices have continued to show strength, trading $69-77/cwt during the first quarter. So although there is optimism in the industry recent lack of moisture and continued strength in the cow market has cow slaughter up three per cent year to date. From a net cow disposal point, with slaughter cow exports down 18 per cent YTD, cow marketings currently only two per cent lower than a year ago.

Replacement ratios show how much higher feeder cattle are per pound than fed cattle. The lower the ratio implies less dollars the feedlot pay to replace an animal; conversely a higher ratio means the feedlot must pay more per pound to replace those animals. Consequently a higher ratio has negative implications on feedlot profitability as more dollars are spent on placing cattle. The steer calf replacement ratio in fourth-quarter 2011 in Western Canada was 1.40 up from 1.39 in 2010. The heifer ratio was 1.37 up from 1.35 in 2010. This was the highest fourth-quarter ratios for calves since 2006. In the first quarter of 2012 550 lb. steer calves were 1.57 in the West and 1.48 for heifers. Ratios in the East are only slightly lower at 1.37 for steer calves and 1.28 on heifers.

Replacement Price Ratio

(Replacement cattle price divided by slaughter price)

YEAR 2008

Canadian Slaughter Cow Marketings 1,100

Slaughter

Thousand head

1,000

Exports

900

2009

800 700 600 500 400 300

2010

HEIFER RETENTION The January 1 Statistics Canada report recorded national beef breeding heifer inventories up 4.3 per cent to just over 554,000 head, but still 13 per cent below the historic average of 638,000 head. While indicating optimism at the cow/calf level with a notion towards expansion, this can be perceived as cautious given the regional disparities with western heifer inventories up 4.8 per cent, while eastern heifer inventories were up only one per cent. In addition, the 2011 heifer slaughter ratio was at 67 per cent. The heifer slaughter ratio accounts for heifer marketings (slaughter plus exports) versus steer marketings annually and although right at the 20 year average of 67 per cent, the ratio has been declining since peaking at 77 per cent in 2008. Prior to 2003, the last time the heifer slaughter ratio was at this level was 1996. That was the beginning of the Continued on page 40 www.canadiancattlemen.ca

2011

2012

QUARTER Q1 EAST WEST Q2 EAST WEST Q3 EAST WEST Q4 EAST WEST Q1 EAST WEST Q2 EAST WEST Q3 EAST WEST Q4 EAST WEST Q1 EAST WEST Q2 EAST WEST Q3 EAST WEST Q4 EAST WEST Q1 EAST WEST Q2 EAST WEST Q3 EAST WEST Q4 EAST WEST Q1 EAST WEST

Heifer calves

Steer calves

Yearling heifers

Yearling steers

Shortkeep steers

(400500 lb.)

(500600 lb.)

(600700 lb.)

(700800 lb.)

(800900 lb.)

1.10 1.07 1.05 1.05 1.13 1.05 1.03 1.02 1.04 1.12 1.14 1.22 1.23 1.27 1.26 1.22 1.20 1.24 1.16 1.21 1.23 1.30 1.35* 1.35 1.32 1.36 1.22 1.35 1.26 1.39 1.32 1.37 1.28 1.48*

1.25 1.20 1.15 1.19 1.19 1.14 1.12 1.14 1.15 1.27 1.21 1.32 1.27 1.34 1.33 1.34 1.32 1.38 1.27 1.33 1.29 1.37 1.39 1.39 1.40* 1.43 1.31 1.44 1.31 1.45 1.35 1.40 1.37 1.57*

1.03 0.99 1.02 1.00 1.06 1.02 0.97 0.96 1.02 1.06 1.10 1.13 1.13 1.18 1.13 1.12 1.11 1.14 1.12 1.13 1.16 1.20 1.20* 1.18 1.20* 1.19 1.15 1.22 1.17 1.24 1.16 1.17 1.19 1.27*

1.10 1.08 1.07 1.09 1.11 1.09 1.01 1.05 1.04 1.13 1.12 1.18 1.16 1.24 1.17 1.21 1.15 1.21 1.15 1.16 1.18 1.25 1.21 1.23 1.22* 1.20 1.18 1.23 1.18 1.28 1.17 1.23 1.21 1.31*

1.07 1.03 1.03 1.02 1.09 1.07 1.01 1.02 1.01 1.08 1.07 1.10 1.15 1.18 1.14 1.16 1.11 1.15 1.10 1.09 1.14 1.18 1.15 1.17 1.16* 1.14 1.11 1.13 1.16* 1.21 1.16* 1.17 1.15 1.22*

*Record highs, East and West

CATTLEMEN / MAY 2012 39

BEEF WATCH

Beef Watch is prepared by the staff of Canfax and Canfax Research Services, divisions of the Canadian Cattlemen’s Association

Continued from page 39

last consolidation phase, which lasted from 1997-99 before inventories expanded in 2000.

Canadian Heifer Marketings

1,500 1,250 1,000 750 500

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

So while expansion intentions may be on the minds of some producers, it is not yet at a level that would indicate dramatic changes in inventories. This could be further substantiated by the net effect on the breeding herd (cows plus heifers). While total Canadian heifer inventories were higher compared to 2011, beef cow inventories were down one per cent to 4.23 million head. The net result is a female breeding herd that was 0.5 per cent smaller than 2011 on January 1. As with cow prices, heifer prices during the first three months have been $18-25/cwt higher than a year ago, which may lead producers to think twice about keeping the heifer calf until more moisture is evident.

CATTLE PRICES Higher prices were seen for all categories of cattle in 2011. This trend continues in 2012. Alberta fed steers in 2011 averaged $105.83/cwt, up $17/cwt from a year ago

Alberta 550 lb., 850 lb. and Fed Steer Prices $200 Alberta Fed

$180

Cdn$ per cwt

Thousand head

1,750

and more than $3/cwt higher than the last peak seen in 2001. First quarter 2012 fed cattle prices have backed off and are averaging $114/cwt, $9/cwt above 2011 Q1. Fed prices have been extremely flat throughout the first quarter, raising questions about a spring peak. Alberta 850-lb. steers for 2011 averaged $123/cwt, up nearly $21/cwt from a year ago and only $4/cwt lower than the last peak seen in 2001. Prices have continued to gained strength in the first quarter of 2012, trading $20-22/cwt higher than a year ago. In fourth quarter 2011 Alberta 550-lb. steer calves traded at $153-162/cwt pushing the annual average to $151.58/cwt, more than $30/cwt higher than a year ago and only $3-7/cwt lower than the peak prices seen during 2000 and 2001. Following the seasonal trend, prices through the first quarter have continued to trade $30/cwt higher than a year ago, ranging from $160-185/cwt.

Alberta 850

$160

Alberta 550

$140 $120 $100 $80 $60 05

Despite higher cattle prices, higher input costs are pressuring profits. In addition, higher feeder and feed prices have dramatically increase the equity and capital requirements for feedlots.

In print, online, ag news all the time. We do our best to keep you up to date on farm news with our family of print publications, but if you’d like to know what’s happening more often, it’s just a few clicks away at www.agcanada.com. It features the latest farm news, updated through the day, as well as three-times daily futures market commentary. AGCanada.com also links you to our publication websites, where, if you’re a subscriber, you can read online, or search back issues. You can also sign up to have news highlights delivered by email daily. So, if it’s in print or online you’ll find it at AGCanada.com

www.agcanada.com | Life and Livelihood. 40 Cattlemen / may 2012

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STRAIGHT FROM THE HIP

The rapid pace of change The rapid pace of change, both for the good of mankind and to its unravelling, can sweep us away in breathlessness but is none the less a permanence in our lives. We cannot escape the age in which we live, nor its nuances such as food insecurity and societal unrest and conversely regional wealth and escalating food waste. It has been estimated that the annual food wastage in the U.K. alone could feed 113 million persons. Historically food waste has been an issue in the press since 1915, but it is one that all civilized societies have chosen to ignore while man pushes for increased yields, taste, quantity, quality, further processing and shelf life in food products. Today with high-pressure processing (HPP) — we now have the ability to conserve fresh foods in their natural state for five years and canned foods to 25 years — but have yet to solve the problem of food waste in our homes, county or world. The relative wealth of our nation allows us to play both sides of the game as advocates for scientific improvement while shamelessly throwing the benefits away. In our haste for all things possible perhaps we have lost the fine art of balance, something we may call ecosystem health — that interaction between people, animals and environment. Our quest for all things instant, gratifying and affordable has resulted in man being the weakest link in the evolutionary chain. No other creature throws tomorrow’s food in the trash nor do they systematically destroy the environment in which they live. Paul Crutzen, Nobel scientist says: “Human dominance of biological, chemical and geological processes on earth is already an undeniable reality.” (TIME) Unfortunately, through this dominance and the accompanying imbalance man has in effect tied the very hands that feed him, his own. Globally, the human population is now a hundred times greater than any other large animal in history. The impact of this results in an overlap of agriculture and housing areas and immense pressures on our food production environment. Scientists refer to environmental footprints and challenge ranches and farms to produce food without a footprint while creating yet another highly processed empty calorie food in their labs. Environmentalists call for new age handprints, urging everyone to make a small difference such as not buying beef, while discarding their half-eaten entree. And governments welcome foreign land investment to ease fiscal burden effectively burning the nation’s future domestic food policy. Even evangelists are speaking of the end of the world because for all intents and purposes, we have already destroyed it. Some things we cannot change. The North American consumer will remain spoiled and have high expectation in regards to their food and our conduct. Science and innovation will continue to investigate and to create solutions without addressing the core issue. And

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while babies starve half the world away the wealthy will dress pet dogs and demand their personal space. As mankind abides by these wishes without acknowledging the consequences he creates a vortex of instability and a fear of food insecurity. If you dare to look to the core of civil unrest you will find the root of food insecurity. While it is true that we cannot go back to the Garden — we can replant and free ourselves from old selfish burdens. As the agricultural industry toils for a speck of respect it is important not only to be creative but to tell our story. The simple truth is that a North American farmer in 1940 fed 19 people while a farmer today feeds 155. More importantly, they can do so largely without disturbing the ecosystem or making a massive footprint. It takes a little ingenuity and some of the practices need to be rethought but it can be done. There are times, as was evident in the so-named pink slime debate, when practices simply have to change in order to reassure and recapture market share. In the future mankind and the beef industry will be faced with knowing that some of what we do is no longer the right thing. I like the analogy of the rhinoceros farm. John Hume discovered that by dehorning a rhinoceros you save his life from poachers and that the horn grows back. Conservationists are leery because of the economics and because this is farming in the truest sense of the word, yet we cannot deny that the practice of dehorning saves and protects the animal and puts it in a controlled environment. Unaddressed is the real issue behind the move by Hume. In Africa the law states that the rhino must be killed for the horn to be exported as a trophy. Even if the farm is successful for generations, until the right thing happens and the law changes, the problem will never truly be solved. In this fast and very transparent age, all things are possible. In our own space, the handprint is likely the decisive action that counts. In doing small things to promote ecosystem wealth and by cutting down on waste ourselves, we truly make a difference and start to slowly change the direction of habit and thought. We are reminded that it is Canadians who are spoiled and Canadians who have one of the highest levels of food wastage on the globe at 40 per cent. It is also Canada whom that world is asking to solve a good chunk of the food insecurity issues. Burden or blessing — it remains our responsibility to take global leadership in all issues of food production and processing and untie the hands of future generations. For the traditional beef industry this requires a new pace that may leave it breathless: but it can and must be done. — 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.

CATTLEMEN / MAY 2012 41

C C A

Martin Unrau is president of the Canadian Cattlemen’s Association

r e p o r t s

n early May, the Canadian Cattlemen’s Association (CCA) was in Geneva for the oral hearings related to the U.S. Government appeal of the World Trade Organization (WTO) Dispute Settlement Panel decision of November 2011. The CCA is committed to seeing the mandatory country-of-origin labelling (COOL) issue resolved and will continue to support the Government of Canada legal team throughout the appeal process to ensure the strongest possible defence. A decision from the WTO is expected sometime in June. COOL is an issue that costs our industry more than $100 million per year. On an individual basis, COOL costs Canadian cattle producers at least $25 on every animal they sell regardless of whether it goes to the U.S. or not. The unnecessary cost of COOL undermines our competitiveness and places Canadian beef at a disadvantage. To date the CCA has incurred well over $1 million in expenses on the U.S. COOL issue related to advocacy in the U.S. and legal fees. The CCA is not going to stand down from its effort until this issue is resolved. The diminished Canadian herd is another issue that has the potential to negatively impact our competitiveness. We do have concerns about whether processing infrastructure can be maintained until the cattle herd expands. In Canada and the U.S., lower numbers of cattle available for processing, particularly cull cows for producing ground beef, will come into play likely at the end of this year and going forward into 2013 and 2014. The total reduction in Canadian beef cow herds has been 19 per cent from 2006 to 2012. In Manitoba, my home province, there has been a 25 per cent reduction. The concern over infrastructure is just as high in Quebec, which experienced the smallest provincial beef herd reduction in Canada during that period. This much was clear when I met with the Fédération des producteurs de bovins du Québec (FPBQ) last month in Sainte-Foy, Que. Many FPBQ members asked questions about and expressed concerns over maintaining processing infrastructure in the reality of a smaller herd. At present, the cattle feeding and packing capacity in North America is out of sync with the number of cattle that currently exist. Without a rapid expansion of cattle numbers, which is unlikely given the realities of the herd-building process, we can expect that there will be further contraction in the feeding and packing sectors. The CCA is striving to minimize the impact on Canadian infrastructure by trying to ensure that Canadian operations have a competitive advantage. At the same time, as an industry we are divided philosophically over the best approach to solving the problem for the long term. It has become a

42 Cattlemen / May 2012

by Martin Unrau

polarizing issue and clearly any solution will have to strike a fine balance to ensure our packers and feeders can survive and prosper. However, just like all well-run businesses adapt to change in order to survive, industry should face the impending new normal with an open-minded approach towards safeguarding Canadian infrastructure for the long term. A healthy and thriving industry will continue to attract young people to the industry. Many of the young people involved in our Cattlemen’s Young Leaders (CYL) Development Program face a bright future, and some will no doubt go on to become the next generation of leaders in our industry. I had the privilege of attending the CYL Spring Forum in Saskatoon, where the 2012 program finalists were selected and the previous year’s candidates enjoyed a celebratory send-off. Times like these underscore the importance of ensuring the beef cattle production is an attractive option for the long term. This is why I was pleased with the $500-million Young Farmer Loan program announced recently by Agriculture and Agri-Food Minister Gerry Ritz and Farm Credit Canada. Programs like these help to address the financing challenges for many young farmers. Competitiveness plays a significant role in our sustainability as an industry in good and bad economic times. Achieving unrestricted access to crucial markets is a big piece of the sustainability puzzle. The recent market access progress we’ve seen in Korea and Japan is a good start but much work remains to be done. A free trade agreement with Korea is needed to restore tariff parity between U.S. and Canadian beef in that market. In Japan, work continues to increase the age limit for Canadian beef to 30 months from under 21 months, and to reach a free trade agreement to eliminate the 38.5 per cent import duty. Annual beef consumption in the EU is approximately eight million tonnes. Our goal is to reach a free trade agreement with Europe that will eliminate a prohibitively high beef tariff as well as address several technical issues that prevent Canadian beef from entering that very lucrative market. Other CCA priorities include achieving access for over-30-month beef into Mexico; expanding Canada’s boneless under-30-month (UTM) access in Taiwan to include bone-in UTM to regain parity with U.S. beef, and resolving the ractopamine restrictions and other technical issues in Taiwan and China. The CCA will continue to work with Minister Ritz, International Trade Minister Ed Fast as well as Prime Minister Stephen Harper to build and expand market access. This will enable us to maximize value for every piece of the animal and return more money to cattle producers. www.canadiancattlemen.ca

BUILDING TRUST IN CANADIAN BEEF

How records anchor the industry

Farms and ranch records underscore our beef industry customer commitment So what exactly did you do there? A simple enough question for anyone in the beef industry market chain — to be asked about any aspect of their operation. At the producer level, a good test of that market readiness might be to ask that question about on-farm records. We are in a “prove it” world and on-farm records anchor our beef industry commitment. Good records should be easy to use and drive effective management decisions. They can’t do that if they sit on the shelf. They need to be used, to make more profit and engage customers. Just outside Wetaskiwin in central Alberta, the Pine Haven Colony has installed a computerized record-keeping system in its feedlot that anchors that business today. Like many operations it

Records are a helpful management tool, regardless whether they are computerized or handwritten.

grew from a much simpler version of that system into today’s state-of-the-art unit. Here are six things those records do for their operation. Speedy, thorough record-keeping. Every animal that comes into the feedlot is entered into the record system. Details of all animal health products, such as label information, dosage and withdrawal time is entered into the system. All feeding data is entered. The result is that every animal is tracked from the time they enter to the time they leave, including slaughter data. Searches are superfast, says the Pine Haven feedlot manager and can be done by any criteria you wish. Instantaneous chute-side information. Processing record information is available at chute-side on touch screen computers. When an animal comes into the chute, its identification number comes up and its current weight is indicated. The treatment protocol comes up, including any product details such as the dosage and application and withdrawal information. There is even an optional checklist for everything that needs to be done. It makes processing simple and virtually foolproof even for new people. Complete records customization. The system allows Pine Haven to establish virtually any record-keeping parameters they want. For example, one identifier they have built into the system is ranch source. That allows them to pull together all the performance records for all the cattle in any given time frame for

any ranch client. That’s useful to both buyer and seller. Reports for cow-calf producer clients. Cow/calf producers who sell to the feedlot really like to know how their animals perform. That’s a simple report to generate out of the database, and links with slaughter information. That helps producers make management decisions such as genetics and whether or not to background. Confidence for their meat customers. Pine Haven feeds for the specialty markets and those options typically have extra record-keeping requirements to meet market needs and back up their brand statement. Connection to industry requirements. The records on this system are “industry ready” for easy and instantaneous uploading, for example, to the Beef InfoXchange System (BIXS) national database and to Canadian Cattle Identification Agency.

The commitment counts One lesson from the hundreds of beef operations across the country using the Verified Beef Production (VBP) program is that effective record-keeping systems come in all shapes and sizes, from very basic handwritten ones to very speedy computerized ones. VBP auditors have found that you don’t have to have the latest software to have good records. Many simple systems have the sophistication to do the job. It’s the commitment to keeping records that counts.

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Every Ralgro implant has the potential to add up to 23 extra pounds* to a suckling calf. The profitable weigh. *Data on file. **Rate of return may vary depending on market conditions. ® Registered trademark of Schering-Plough Animal Health Corporation, used under license by Intervet Canada Corp. Merck Animal Health, operating in Canada as Intervet Canada Corp., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. MERCK is a trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. Copyright © 2011 Intervet International B.V., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. All rights reserved.

RALGRO Canadian Cattleman QSH.indd 1

12-01-25 14:17

P r i m e

c u t s

by Steve Kay

Beware the social media A North American view of the meat industry. Steve Kay is publisher and editor of Cattle Buyers Weekly

f there is one huge lesson from the LFTB from each cattle carcass. If LFTB was not made media furor in the U.S., it’s this. Don’t ever anymore, the U.S. would need 1.5 million more underestimate the ability of the national cattle to replace it. and social media to damage the beef indusLFTB is also a remarkably safe product. BPI try. The second lesson is: Counterattack sooner has long been a world leader in food safety innorather than later. vations. It was the first beef processor in the If you haven’t read about the media assault U.S. to hold and test all its products for the E. on LFTB (lean finely textured beef), here’s a coli 0157:H7 pathogen. It pioneered the use of recap. Media attacks over the past three years ammonium hydroxide (in gas form) as a means to on the product come from a documentary about kill virtually all pathogens in its meat. It has never food production, the New York Times and a had an illness related to its products. Despite all this, BPI is now struggling for survival. British celebrity chef. The term “pink slime” is How could all this happen? There’s no easy used to describe LFTB. TV network ABC News answer, except to say that BPI and the industry regurgitates the story this March and the term seriously underestimated how the LFTB story enters the social blogosphere. might evolve. In retrospect, both should have Retailers who use LFTB in their ground beef counterattacked the day after chef Jamie Oliver run for cover, saying they won’t use it anymore. mischievously depicted how BPI makes LFTB in The company that makes LFTB closes three a crude but compelling of its four plants. The demonstration on TV. price of fatty trimThat was on April 12 mings (50CL) from The furor in the blogosphere last year and Oliver’s fed cattle plummets show did more than and by mid-April is over LFTB (lean finely anything else to launch half what it was at the the “pink slime” term end of February. The textured beef) had retailers into the social media. furor costs the U.S. running for cover and cost We’ll never know how beef industry at least things might have $30 per head or $20 the U.S. beef industry at turned out had BPI and million per week. the industry responded The Canadian least $30 per head or then. But we know now industry well knows $20 million per week that the story remained the financial impact of too compelling for an unexpected crisis. other media outlets to Canada’s first homeignore, and that the derogatory term for a pergrown BSE case in May 2003 severely damaged fectly fine beef product has become part of the the industry and put a lot of producers out of social lexicon. business. The U.S.’s first BSE case in December None of this could happen in Canada, you didn’t wreak quite the same damage. But it still might say. Don’t be too sure of that. If not a caused billions of dollars in losses. The LFTB beef product, what about an attack on cattle furor threatens to be the biggest crisis for the production practices such as dehorning, castratU.S. industry since BSE. ing or branding? The North American industry Cruel ironies abound regarding the furor. must be ready to defend all its practices if and LFTB maker Beef Products, Inc. took fatty trimwhen they come under attack. mings that used to go to rendering and developed a way to spin the fat out of the meat and turn that meat into very lean beef. LFTB was Cattle Buyers Weekly covers the North American meat and still is a legitimate, nutritious and ecoand livestock industry. For subscription information, nomical addition to the U.S. beef supply. It also contact Steve Kay at P.O. Box 2533, Petaluma, CA 94953, or at 707-765-1725, or go to www. fits with sustainability efforts, as it helps the cattlebuyersweekly.com. industry recover the maximum amount of meat

44 Cattlemen / May 2012

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RESEARCH

Can composting destroy BSE prions?

t is believed bovine spongiform encephalopathy (BSE) is caused by an abnormal prion protein, and spread when protein supplements containing BSE-infected meat and bone meal are fed to healthy cattle. When cattle consume infected meat and bone meal, the prion is absorbed in the distal ileum (part of the small intestine), slowly migrates to the spinal cord, and gradually travels to the brain. Canada introduced a feed ban to prohibit the feeding of ruminant meat and bone meal back to ruminants in 1997, but still allowed its use in hog and poultry feed, pet food and fertilizer. After Canada discovered BSE in cattle born after the 1997 feed ban, cross-contamination in feed mills, the accidental feeding of hog or poultry supplements to cattle, or very old protein supplements were suspected. Canada introduced an enhanced feed ban in 2007 to ensure that the tissues that are most likely to carry the BSE prion are completely removed and segregated from all other byproducts so that they cannot enter livestock feed, pet food and fertilizer. These tissues (including the distal ileum in cattle of all ages, as well as the brain, spinal cord and some other tissues in cattle over 30 months of age) are termed specified risk material (SRM) and are mainly being landfilled at locations approved by the CFIA. A stronger feed ban was needed so that Canada could attain controlled BSE risk status, but the increased costs imposed on Canada’s packing and rendering sectors have been shared with the feeding and cow-calf sectors. Deadstock pickup has also been impacted. Renderers still recover the hide and tallow from deadstock. However, removing SRM from deadstock is not worthwhile, so all of the meat and bone meal from the rendered deadstock is treated as SRM. With deadstock pickup costing nine cents per pound or more, it can cost $45 to have a 500-pound feeder calf picked up. A 30,000head feedlot that turns over 2-1/2 times, with a one per cent death loss, could easily face an additional $33,750 deadstock disposal bill to factor into feeder calf prices. Disposing of a large cow could cost $150, and deadstock pickup services are not available in some remote areas. This has made on-farm disposal an attractive option for many cow-calf producers. Dogs, coyotes and bears are very efficient at deadstock disposal, but can also become very efficient predators if they develop a taste for fresh beef. A cost-effective carcass disposal method that also inactivates prions would benefit cowcalf producers. Here’s the research connection. Last month’s column mentioned that a survey of 25 different Cana-

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dian government (federal and provincial) and industry funders found that nearly a quarter of all beef and cattle research funding had been directed towards prion research projects between 2007 and 2011. Several of these 40 projects are evaluating incineration, alkaline and thermal hydrolysis. These technologies can inactivate prions and are eligible for approval by the CFIA, but are expensive and difficult to engineer, construct and operate. However, two projects are examining whether composting can inactivate prions. In one composting project funded under the Beef Science Cluster, Dr. Tim McAllister of the Agriculture and Agri-Food Canada’s Lethbridge Research Station and coworkers from the CFIA, Alberta Agriculture and the University of Lethbridge are studying bacteria and fungi in compost that can degrade keratin. Keratin is the protein that makes hooves and horns difficult to compost and shares some structural properties that are similar to prions. This team has also developed a method to measure prions in compost, and has shown that micro-organisms in compost can degrade up to 40 per cent of scrapie prions during a single large-scale composting cycle. In the current project, the researchers are conducting composting studies within the Level 3 containment area at the CFIA’s Lethbridge laboratory. Healthy and infected brain samples have been obtained from the CFIA’s BSE reference laboratory and are being composted with manure. At the end of the composting period, the infected tissues are recovered from the composters and the numbers of BSE prions remaining are being determined. Subsamples recovered from the tissue will be used to test if the composted brain material can infect BSE-susceptible mice. Preliminary results indicate that composting may be able to degrade 90 to 99 per cent of the BSE prions found in the original brain tissue samples. More sensitive prion analyses are currently being conducted to confirm this result, and the mouse bioassays will be starting soon. This research is scheduled to be completed in March 2013, and will help to decide whether composting should be approved as a method of SRM disposal. The Beef Research Cluster is funded by the Canadian Cattlemen’s Association and Agriculture and Agri-Food Canada to advance research and technology transfer supporting the Canadian beef industry’s vision to be recognized as a preferred supplier of healthy, high-quality beef, cattle and genetics. — Reynold Bergen Reynold Bergen is the science director for the Beef Cattle Research Council. A portion of the national checkoff is directed to the BCRC to fund research and development activities to improve the competitiveness and sustainability of Canada’s beef industry.

CATTLEMEN / MAY 2012 45

NEWS ROUNDUP IDENTIFICATION AUCTIONS TEST FAVOURS STAND-ALONE TRACEABILITY SOFTWARE A study done in the fall of 2011 at six auction markets in Manitoba, Saskatchewan and Ontario suggests markets would be well advised to collect traceability data on a separate computer

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from the ones they use to manage their business. This is the third leg of the National Applied Research Project started by the Canadian Cattle Identification Agency (CCIA) and the Livestock Markets Association of Canada (LMAC) in the fall of 2009 to evaluate the practical application of cattle traceability in auction markets. The first phase tested various configurations of readers at nine markets of differing sizes across the country. The project employed and trained personnel to operate custom-designed software to capture individual animal RFID numbers by lot for upload to the Canadian Livestock Tracking System (CLTS) managed by the CCIA. After scanning 144,197 head in 31,736 lots it was determined the average read accuracy of the panel readers installed in single-, dual- and wide-alley systems was 93 per cent. Phase two tested three software options for reporting RFID numbers. The first was phase one software. The second integrated scanning programs with the business management software at each market. Market employees had to enter additional data to tie the RFID numbers to consignors or buyer lots. This extra step added complications, costs and slowed the pace of sales without providing anything that the markets viewed as value to consignors or buyers. The average reading accuracy also dropped off to 89 per cent across 393,474 head of cattle because of software errors.

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46 CATTLEMEN / MAY 2012

“The vet is using hypnosis on his tougher cases.”

This latest study, termed two-B, tested a third option, which was to run a stand-alone software system not connected to the market’s business network at six auction markets. The program was turned on at the start of the day and off at the end of the day and only used to record RFID numbers with no link to consignor or buyer lot numbers. The software produced a simple report showing the total number of scans and read accuracy for each day and generated a spreadsheet of tag numbers for uploading to the CLTS database in a timely manner. A total of 118,200 head were scanned during phase two-B. In her final report on the results of this trial released last month project manager Donna Henuset rated this stand-alone software system the least expensive to install and operate. The labour requirements were minimal and it was easily managed by market staff. The software costs about $2,000 versus $4,000 to $8,000 for integrated software packages. It also had no effect on the pace of sales at these markets and, in most cases, proved to be an efficient way to record and report RFID numbers. Best of all, any technical difficulties with this system did not affect normal sales transactions. There was some variability in the results from one market to the next. At Gladstone Auction Mart, Gladstone, Man., RFID tags were scanned in a four-panel wide-alley receiving setup and data fed by cable to a separate computer in the office. Their read rate was 93 per cent, the same as phase one, and better than their 86 per cent in phase two. This was notable because the market had a dual-alley scanner setup during the phase one trial. Ontario Stockyards in Cookstown, Ont., scanned tags at the entrance to the sale ring with an eight-panel wide-alley system and the software was installed on an electronic notebook at the sales ring. The read rate was 91 per cent versus 94 per cent during phase one and 89 per cent in phase two. (When they dropped the 61 per cent reading on the day they forgot to turn the program on until halfway through a sale, their accuracy was equal to the phase one result.) Saskatoon Livestock Sales at Saskatoon, Sask., scanned tags in an eightpanel wide-alley setup as cattle exited the ring with the recording software installed on a laptop in the auction booth. The read rate was 58 per cent www.canadiancattlemen.ca

compared to 93 per cent in phase one and 96 per cent in phase two. The entire system crashed due to a power failure early in the test period and the effects haunted the system throughout the remainder of the test. The read accuracy was 94 per cent prior to the crash and remained high on the days when the software was working, however, that was only on 23 out of 33 days. Spiritwood Stockyards of Spiritwood, Sask., scanned tags in an eightpanel wide-alley system as cattle exited the ring with the software installed on an office computer. The read rate was 96 per cent versus 91 and 89 per cent for phase one and two, respectively. The improvement was chalked up to resolving an issue with electrical interference from an outside source after phase two. Ste. Rose Auction Mart at Ste. Rose, Man., switched from a singlealley scanning system in phase one that achieved a 97 per cent read rate, to one dual-alley system for ground-loading trailers and two single alleys for semitrailers to scan tags at receiving. The software was installed on a laptop in the receiving area. The read rate of 83 per cent was comparable to the 84 per cent achieved during phase two. The read accuracy fluctuated considerably

from week to week, ranging from 56 per cent to 100 per cent. Winnipeg Auction Mart scanned with an eight-panel wide-alley system at receiving with the software installed on a laptop in the office. The read rate was 92 per cent despite the fact that the system was not set up for the first week of the trial and another week of recordings were lost when the software wasn’t turned on for the day. This compares with read rates of 90 per cent in phase one and 88 per cent in phase two. Installation of the software on an office computer seemed to be the most effective location because the office staff always remembered to turn it on at the start of the day, whereas, yard staff sometimes forgot about it until partway through the day. The office also provided good protection from the elements and immediate access to the Internet without having to move the laptop in order to transfer the file to the CLTS database. The report concludes that, excluding the data set from Saskatoon Livestock Sales, the bypass systems generally outperformed the integrated systems when they considered the accuracy, low labour requirement, efficiency and relatively low cost of this stand-alone system

CCIA communications manager, Kori Maki-Adair says that the marketing sector will continue to monitor advances in technology that could be used to enhance movement tracking as it works with industry and governments to find a cost-effective, market-neutral solution in support of traceability that has the least effect on the speed of commerce. Reports on all three phases are available at www.canadaid.ca.

forage Alberta forage valued at $2.1- to $3.85-billion per year A highlight of the Alberta Forage Industry Network’s (AFIN) second annual general meeting this spring was the presentation of “The Value of Alberta’s Forage Industry” by Alberta Agriculture and Rural Development (AARD) forage specialist Stephanie Kosinski. The analysis, which is the result Continued on page 48

Join the conversation Join Alberta Beef Producers as we tackle issues, trends and tips with our new series of free webinars. A webinar is a seminar that is hosted online. We will present speakers and topics that are engaging, entertaining and informative. Each session will have 30 minutes of speaker time, with up to 30 minutes after for questions and conversation. Don’t have high speed Internet? That’s okay. You can join by phone with the phone number provided at registration. Aren’t available when the webinar is live? You can either download it from the ABP website anytime after it’s ended or call the ABP office and we will mail it to you on DVD.

Upcoming Webinars TOPIC: Taking up the challenge. Be an advocate for your industry. SPEAKER: TBD, Canada Beef Inc. DATE: Wednesday, May 30 at 7 p.m.

TOPIC: Utilizing Social Media to Expand your Network and Engage our Industry. SPEAKER: Megan Oleksyn, Southpaw Communications DATE: Wednesday, June 27 at 7 p.m.

TOPIC: Returning to the farm. What makes it work. SPEAKER: Jill Harvie, Canadian Cattlemen’s Association DATE: Thursday, July 26 at 7 p.m.

to register for any or all of the webinars, go to: www.albertabeef.org/media/webinars www.canadiancattlemen.ca

Cattlemen / May 2012 47

Profiting through Productivity

News Roundup Continued from page 47

99th Convention & Annual General Meeting May 27-29, 2012 Cypress Park Resort, Cypress Hills Interprovincial Park

Join us May 27 – 29, 2012 in Cypress Hills Interprovincial Park for the Saskatchewan Stock Growers Association 99th Convention & Annual General Meeting. With positivity in the cattle industry, producers are looking for ways to optimize production & maximize profitability. This year’s convention will feature an exciting line up of speakers to address issues from production to current market opportunities. An institution in the beef industry for nearly a century – you won’t want to miss the SSGA 99th Convention & Annual General Meeting!

306.757.8523 ssga@sasktel.net www.skstockgrowers.com

48 Cattlemen / May 2012

of a joint effort between AARD and AFIN, follows the template developed by the Saskatchewan Forage Council (SFC) to come up with a value for that province’s forage industry. AFIN chairman Don McLennan says this publication was one of AFIN’s top priorities when the group was formed in 2010. The hope is this report will increase awareness of the value and importance of Alberta’s forage industry and serve as a format that can be regularly updated and fleshed out in future years. The multi-level analysis shows that native forages and annual and perennial tame forages cover close to 28.6 million acres — more than 55 per cent of Alberta’s farmland — and that the livestock industry, particularly the beef sector, is by far the largest consumer of the province’s forages. According to provincial statistics Alberta average annual tame hay production from 2004 to 2009 (8,864,160 tons) rivalled that of all wheat grain production (8,393,300 tons) and exceeded barley grain (5,448,840 tons) and canola (3,836,390 tons). Statistics Canada’s 2006 census provides the most recent data for Alberta’s forage acres: native range — 16,135,646; tame pasture — 6,137,362; alfalfa and alfalfa mixtures — 3,935,022; corn silage — 70,411; all other tame hay and fodder crops — 2,060,967; forage seed — 244,615. A full 51 per cent of Alberta’s native range is grassland, 21 per cent is Parkland, six per cent Foothills and 22 per cent mountain and boreal forest. The forage industry is more than pastures, however. It includes tame forages for seed (domestic and export), processed forage products (cubes, pellets, compressed hay), leafcutter bee production, sod sales (residential, parks, golf courses), ag-tourism and the potential for carbon offsets. All count toward the estimated direct value of forages to the provincial economy which the report pegs at $1.6 billion annually. The calculations are based on total production and sale prices for each sector’s products. The breakdown of the estimated annual direct economic value in millions per year is as follows: Hay (domestic) — $620.5 Pasture/grazing — $349.8 Silage (annual crops other than corn) — $114.9 Green feed — $91.5 Timothy hay (export) — $78.0 Straw for feed — $77.0 Forage seed (export) — $36.0 Sod — $30.3 Silage (corn only) — $25.9 Forage seed (domestic use) — $23.8 Processed alfalfa (export) — $21.0 Hay (export) — $4.0 Processed alfalfa (domestic use) —$3.7 The value of forages to ag-tourism was estimated at $64.7 million to $108.5 million annually, while the potential for carbon offset sales was valued at $14.8 million per year to arrive at the total of $1.6 billion. The estimated indirect value generated by forages comes from their contribution to the ecosystem, the environment and society as a whole. Since this is an emerging field, science has yet to standardize how we quantify these benefits and market values. www.canadiancattlemen.ca

Estimated total Indirect Economic Value from Forages in Alberta Value (’000 000 per year ) Erosion control $2.7 – $334.9 Water quality $15.5 – $107.9 Water retention and regulation $21.6 – $118.6 Wildlife — consumptive use $5.0 – $315.8 Wildlife — non-consumptive use $17.4 – $621.7 Recreation fishing Pollination services Honey production Carbon sequestration Total

$0.2 – $35.9 $288.7 $2.3 $184.0 – $419.9 $537.4 – $2,245.7

The total direct and indirect value of all types of forages to Alberta’s economy is estimated between $2.1 billion and $3.85 billion annually. The report provides detailed explanations regarding the basis for and methods used to calculate the values. Copies are available at all ARD field offices and online at www.albertaforages.ca and www.agric.gov.ab.ca.

marketing Bulk feed sales go online Feedpail.com is a new online service launched in April to connect sellers and buyers of bulk feed ingredients for beef, dairy, swine and poultry. In light of the broad array of feed

ingredients available today, Feedpail founder, Ryan Cooney of Mankato, Minnesota, had convenience and time savings for livestock producers in mind when he developed the site. The service is free to buyers from across the U.S. and Canada. It’s also free to sellers, but as of startup was limited to loads originating in the U.S. Cooney says his plan is to see how many requests there are for Canadian loads to be posted for sale and then adjust the service accordingly. More than 50 bulk feed ingredients are categorized under fats and oils, animal proteins, non-animal proteins, grain and grain byproducts and minerals. You can search the postings by a single product, multiple products, region or state to see availability and prices, making slick work of spot checking prices and monitoring price trends. In a nutshell, people who want to actively buy and sell sign up for a free account. Sellers list their ingredient, tonnage without freight cost, dates of availability, location, price (flat price or basis contract), and terms of pickup or delivery. Buyers click on buy or bid. The seller then has the option of accepting or rejecting the bid or posting a counter-offer. All trading remains anonymous until the sale price is agreed upon, then the buyer and seller information is shared between the two parties and they execute the sale. The program includes features such as your own message account to anonymously post bids, counter-bids, requests for more information about the product and receive freight quotes. The quote will come from the seller if the seller is handling the delivery. If not, Feedpail will supply a quote from a shipper who will bill you directly for the load. All information, including buyers and pricing, is confidential. Continued on page 50

The Livestock Centre New loCatioN

Featuring: Seminars Livestock equipment demonstrations Industry trade show booths

Celebrating A Production of

www.canadiancattlemen.ca

35years

of progress

www.myfarmshow.com

June 20 - 22, 2012

Evraz Place, Regina, SK, Canada Cattlemen / May 2012 49

NEWS ROUNDUP Continued from page 49

FERRIS FENCING ELECTRIC NETS WITH POSTS

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Cooney says livestock producers are often limited by time and the network of suppliers they know. Feedpail will instantly broaden the networks for available ingredients and open new markets for suppliers, while the easy-to-use format will allow both to quickly negotiate and close purchases and sales. All account holders are eligible to receive an e-newsletter with regular updates on bulk feed ingredient prices. Check it out at www.feedpail.com or contact Cooney at ryanc@feedpail.com, 507-340-3950.

POLICY

info@ferrisfencing.com • www.ferrisfencing.com 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!

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

Homozygous Dun - ALL his foals WILL be red dun, dun or grulla, regardless of the dam’s color!

1998Champion MHBHA Reining Champion 2001 MHBHA Working Cow Horse First Place 1998 AQHA Junior Reining 2001 MHBHA Working Cow Colorful Colorado Circuit Champion 2000 NRHA Limited Open Res. Horse First Place Champion Sandhills Slide 1998 IBHA Open Reining Colorful 2000 NRHA Limited Open Res. Colorado Circuit Champion 2000 NRHA Limited Open Res. Champion High Desert Slide

Champion Sandhills Slide NRHA Money Earner

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

Sandy Ridge Stallion Station Fast Moon Chic

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

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:

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!!!”

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

SEND THEM YOUR OLD COWS There was a time after the U.S. border closed in 2003 that Canada seemed to be awash in older cows. That was nine years ago this month but things are more in balance now. On January 1, the Canadian herd still had 271,000 beef cows born before 1999 which is about 400,000 fewer than could be found across the country in 2009. That’s as far back as the inventory numbers go but it’s pretty safe to assume that we are whittling into the susceptible population that were born after Canada’s enhanced feed ban came into effect in 2007. Like most things, success on one front has created something of a problem on another. The numbers of cattle submitted to the BSE surveillance program have started to slip, to the point that Canada may not meet its promised testing threshold of 30,000 animals per year. Although the number of detected cases continues to decline in Canada and around the world it will be a few more years before Canada can fully demonstrate the effectiveness of all the control measures we have put in place to eradicate this disease from the national herd. It reached the point last month where the Canadian Cattlemen’s Association and the Canadian Food Inspection Agency chief veterinary officer, Dr. Brian Evans felt compelled to issue a plea for more old cows so Canada can meet its target. “We recognize the past nine years have not been easy for producers but if we are to stay the course for a period 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

Jaz Poco Goldun Blue

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

Ima Bootscootin Lena

2004 ApHC Registered Stallion Canadian Supreme Nominated LTE $15,860 Breeding Fees: $1,000 plus $250 booking fee Mare Care: $8/day wet; $6/day dry Live Foal Guarantee

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50 CATTLEMEN / MAY 2012

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5010 HST Cab w/ loader

403-931-2212

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longer we can achieve what we collectively set out to do,” said Evans in the statement. The stewardship and strong support of producers to date has been an important element in sustaining consumer trust in Canada and noted repeatedly by regulatory officials in other countries in their decision-making to restore market access, he said. During the month of March, a total of 2,593 surveillance samples were tested for BSE, compared with 4,199 a year earlier. During the three months January through March, a total of 7,718 suspect animals were sampled and tested, compared to 10,869 in the first quarter of 2011. About 30,000 samples are required to satisfy World Organization for Animal Health (OIE) guidelines. The targets have been adjusted to account for the reduced size of the national herd and changes in the overall age of the herd. Canada is in its fifth year of the enhanced feed ban, and is just at the mean average incubation period for the disease. The real proof will come in the next two to three years, says Evans, and that’s what the CFIA is focusing on. “If we can sustain this effort through to 2015 we should be in a very good position at the international level to adjust our surveillance activi-

✷

D ON’T MI SS

ties accordingly on the recognition that we’ve done our due diligence and that the measures we’ve demonstrated scientifically are effective measures, and then we can make further programming adjustments as part of the BSE road map going forward,” he says. Last year, there were a total of 29 BSE cases globally in countries that test for it, and a 50 per cent decrease in cases every year over the last four or five years. While producers may see that as a signal to finally put BSE behind them, Evans says continued vigilance at home is still required, given the fact that we have restored a number of markets for beef products and live animals. The CFIA is looking for animals most at risk of having the disease — cattle over 30 months of age that are dead, down, dying or diseased, and cattle exhibiting clinical signs of BSE. If you have an animal that fits this description contact your nearest CFIA office or phone (800) 442-2342. C

Limousin Bank on the Carcass Breed

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At 30, this girl is sweet, country fresh, has a great career, wonderful smile, beautiful on the inside & out. I’m an adventurous person, I will try anything once. I love the outdoors as I grew up on a farm so I am used to fishing, hunting & hard work. I am picky, I like tall as I am 5’8, 131lbs. He has to have a stable income, maybe he could farm & own a business, my parents are farmers, but business owners too. I enjoy flying, love horses, dogs & animals love me. I’m a happy person but I want to be married with children in the next 5 years. I’m open to share my life with a man who has children from another marriage if he is the right person

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CATTLEMEN / MAY 2012 51

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purely purebred Suggestions are always welcome. My phone number is 403-325-1695 Email:

on you to make it a success. You are invited to celebrate this milestone with old and new Limousin friends at beautiful Manitou Beach, near Watrous, Sask., July 27-29, 2012. Go to www. limousin.com for more info.

deb.wilson@ fbcpublishing.com

◆ The Maritime Simmental Association

Deborah WILSON

will host the Canadian Simmental Association 2012 annual meeting in Truro, Nova Scotia on August 25. This event is being held in conjunction with the Nova Scotia Provincial Exhibition, and the days leading up to the annual meeting are filled with events. Members are being encouraged to start planning now for a summer holiday in the Maritimes.

◆ The Canadian Angus Associa-

◆ The picture in the April issue fea-

tures Glen Good and Ken Cox. Numerous people identified these two gentlemen, even some that partied with them! Now tell me who this young lad

tion has hired two summer interns, Stacey Domolewski and Erin Toner, for Alberta and Saskatchewan. Their main job is to promote and market the female beef project to existing 4-H members and hopefully increase the number of junior Angus members.

◆ The Alberta Junior Angus Association is getting ready for the Summer Synergy show, July 7-15 in Olds and a second show Aug. 12-14 in Bashaw. For more information on Summer Synergy visit www.summersynergy.ca/. ◆ Everyone’s thoughts are on this early

is and step up the game — what year would this have been.

◆ There is no better time than NOW

to pull some tail hair from your new herdsires before they are turned out for natural service!

◆ The folks at the Canadian Hereford Association are getting excited; let’s rephrase that to “more excited” as they get closer to the 2012 World Hereford Conference being held in Calgary this summer. To enter cattle in the show or just get up to speed on what they have planned visit the Hereford association website, www.hereford.ca, and click on the link for the World Hereford Conference. It promises to be a great event! ◆ The Saskatchewan Limousin Asso-

ciation is celebrating its 40th anniversary this year, and it is counting

52 Cattlemen / May 2012

spring weather and the itch to get out on the field. But in five short months, Canada’s Outdoor Farm Show (COFS) presented by Farm Credit Canada will again roll out a wonderland of new technologies and live demonstrations with crops, machinery and livestock. The 19th show is set for Sept. 11, 12 and 13 at Canada’s Outdoor Park in Woodstock, Ont.; 40,000 visitors are expected at this year’s show.

◆ Alberta Beef Producers has estab-

lished a series of free 30-minute webinars covering current trends and issues facing the beef industry. The schedule calls for three monthly webinars so far with the first broadcast scheduled for May 30 on how to become an advocate for your industry. You can register at the ABP website www.albertabeef.org.

◆ Ken Fraser is putting his newly won

2011 Polaris Sportsman 500 ATV to work checking cattle and fencelines on his Greenglade Farms near Provost,

Alta. The quad contest was part of a Dow AgroSciences range and pasture management promotion in Western Canada. Producers were entered to win when they consulted with their ag retailer about using Dow AgroSciences products Reclaim, Restore, Grazon or Tordon 22K for improved grass production. “We want to help livestock producers grow more grass, graze cattle more efficiently on the same number of acres, and in turn reduce winter feeding costs which will improve their profitability,” says Mark Alberts, product manager and market development specialist with Dow AgroSciences.

◆ Youth in schools across Alberta will

learn about farm safety and the positive contribution of agriculture through innovative programs launched by Agriculture for Life. This new organization has been formed by a number of companies in Alberta with an interest in agriculture to improve the public’s understanding of the industry and develop a better appreciation for the value of food and where it comes from. Its farm safety programming is targeted to reach 100,000 rural Alberta children aged five to 15 over the next two years.” Ag for Life has developed two independent Program Advisory Councils; one for farm safety and another for education. The organization’s founding partners Agrium Inc., ATB Financial, ATCO Group, Penn West Exploration, Rocky Mountain Dealerships, TransCanada Corporation and UFA Co-operative Limited and contributing members AdFarm, Alberta Agriculture and Rural Development — Government of Alberta, Blake, Cassels & Graydon LLP, Glacier Media Group and Mosaic Studios have so far raised $3 million for this program and are looking for more partners. For details visit www.agricultureforlife.ca.

◆ The Canadian Cattlemen’s Association (CCA) welcomed the $500-million Young Farmer Loan program announced by Agriculture and AgriFood Canada and Farm Credit Canada (FCC) last month. The FCC loan program will help qualified producers under the age of 40. CCA president Martin Unrau said financing is one of the biggest obstacles facing many young producers wanting to start or expand Continued on page 54 www.canadiancattlemen.ca

Bull Sale Results Pick Of The Crop Bull Sale Listowel, Ont. — March 31

Number of lots sold

Average price

Breed

2011

2012

2011

2012

Angus

$2,550

$2,510

Charolais

2,630

3,350

—

Composite

—

4,100

—

Crossbreed

2,575

—

Limousin

2,400

3,188

Simmental

2,345

3,077

TOTAL

2,500

3,062

Maritime Beef Testing Society Annual Bull Sale Nappan, N.S. — April 7

Number of lots sold

Average price

Breed

2011

2012

2011

2012

Angus

$3,100

$3,083

Charolais

2,814

3,567

Hereford

1,883

2,208

Hybrids

2,000

2,990

Limousin

2,450

2,375

Red Angus

2,740

3,200

Salers

1,812

1,762

Shorthorn

1,725

2,250

Simmental

2,589

2,794

TOTAL

2,569

2,873

Douglas Bull Test Station Sale Douglas, Man. — April 7

Number of lots sold

Average price

Breed

2011

2012

P R O U D LY P R E S E N T S

The 2012 Livestock Markets Association of Canada Annual Convention & Auctioneer Championships May 31 - June 3, 2012 in Calgary, Alberta

2011

2012

Angus

$2,786

$2,893

Blonde d’Aquitaine

4,050

2,800

Charolais

2,589

2,703

—

Composite

—

2,688

Gelbvieh

2,450

2,400

Limousin

2,886

2,971

Maine-Anjou

5,000

3,800

Convention kicks off Thurs evening with reception and hospitality

Salers

2,300

2,500

Auctioneer Championship Friday 9:00 AM at VJV Foothills, Stavely, Alberta

Shorthorn

3,389

2,861

Simmental

2,500

3,029

125

TOTAL

2,849

2,877

Canadian Cattlemen magazine is proud to be a diamond sponsor of the Livestock Markets Association Convention and the Canadian Livestock Auctioneer Championship.

www.canadiancattlemen.ca

The Theme for this years annual convention is “From the Foothills to The Future” The Keynote Speaker at the Saturday noon luncheon is Cassie Campbell the six time world Champion Women’s Hockey player. She is the only captain male or female to lead Canada to two Olympic Gold Medals. Cassie will bring a motivational and inspiring presentation on “Consistent Leadership”. The other topics for the Saturday educational session are: Presentation on CCA’s BIX – Travis Toews Presentation on Movement Document – David Moss LIS Presentation on Movement Document – Lee Simmons Presentation on Traceability and Data Assessment – Rick Wright Round Table, Memberships top 5 issues in our industry

CATTLEMEN / MAY 2012 53

sales Continued from page 52

a farm business. “There are plenty of young people who love agriculture and want to start their own business, but just can’t make the numbers work. Providing young people with the opportunity to secure loans that are tailored to their age and stage in life is crucial to keeping them in the industry,” he said

◆ Livestock Gentec, with the University of Alberta will be conducting whole genome sequence scans on what they hope will be the most influential bulls in the major Canadian breeds. I will be working with them to do a one paragraph profile in Purely Purebred

on some of these bulls that they will be sequencing from the breeds. We have titled it Canadian Cattle Genome — Bull of the Month. This month’s sample profile is a North Devon bull named “Potheridge President.” (below, left) Potheridge President is arguably one of the most notable North (Red) Devon bulls imported into North America. Sired by Potheridge Ransom and Potheridge Dainty 9th, he was imported from England into the U.S. in 1968 and his semen was imported into Canada shortly thereafter. He was the first Devon bull to become a Certified Meat Sire and won every category for production, reproduction, and meat quality in the American ABS trials in the late 1960s. His genetics are highly influential in North American Devon cattle, which are known for their efficient growth on grass forage and were known as “the Butcher’s Choice” because of the meat tenderness, taste and juiciness. Although there are few Red Devon purebred herds in Canada, his genetics have been influential in many commercial crossbred programs. The Canadian Cattle Genome Project is focused on bringing cost-effective

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

# of head

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54 Cattlemen / May 2012

 c) 45 to 54

Northland’s Edmonton Expo Centre, March 31, 2012 7 Bulls, av. $5,160 1 8 Heifers, av. $9,000 1 Flush, av. $6,250 17 Embryos, av. $1,080/embryo 70 Straws $126/straw Complete results: www.summit3sale.com.

Crowfoot Cattle Co. Red and Black Angus Bull Sale & Commercial Female Sale Standard, Alta., April 5, 2012 12 20 29 33 94 40 70

Red Angus two-year-old bulls, av. $4,383 Black Angus two-year-old bulls, av. $4,250 Red Angus yearling bulls, av. $4,155 Black Angus yearling bulls, av. $4,202 Bulls, total $4,221 Open yearling females, av. $1,142 Bred heifers and cows, av. $1,810

genomics (DNA) tools to Canadian beef producers to improve the profitability and efficiency of modern beef production. For more information on the project see the website www. canadacow.ca. If you have samples of influential bulls that you would like to donate to the project contact project manager Disa Brownfield at disa@ualberta.ca or project leader Steve Miller at miller@uoguelph.ca. C

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

The Summit 3 Speckle Park Sale

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The markets

Market Summary debbie mcmillin Fed Cattle

The relatively flat market of 2012 continued into April. In relation to other years the fluctuations of this market to date have been slight. The third week of March saw a spring high achieved on Alberta steers at $116.54 per cwt. Negative news plagued beef demand at the end of March as the U.S. struggled with the media focus on lean finely textured beef that drove down cattle futures and backed up the beef supply line. Since the high in March Alberta fed cattle slid under year-ago prices for three straight weeks, losing $7 to an average $109.37 in mid-April, $1.62 per cwt under the same week last year. This was the first time since mid-2010 that the prices slipped below the previous year. The cash-to-cash basis is still wide at -11.96 per cwt compared to -3.42 last year. Cattle on feed in Alberta and Saskatchewan on April 1 totalled 968,626 head, according to Canfax.

Deb’s Outlook Fed Cattle Front-end supplies backed up slightly but overall remain fairly current as feeders started to move more calves into the mix. Good export demand from U.S. packers and improved beef demand as the weather warms and consumers look to barbecue season are all positives as the market moves forward through early spring. Looking toward summer seasonal pressures on the market include the upcoming volume of calves to move through the system and slug-

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That’s three per cent under a year ago and the smallest April 1 on record since April 2009, the result of much smaller March placements and increased marketings. Placements were down 16 per cent compared with March 2011. Heavier fall placements, increased heifer retention and rising feeder exports through the first quarter contributed to the drop in placements. Steer slaughter was up one per cent on the first week of April at 329,158 head while heifer kill at 257,318 head was down eight per cent. Fed cattle exports totalled 107,820 to the end of March, down 13 per cent from 2011.

Feeder Cattle Heavy feeders have traded lower since the peak in early March. This was expected as 850 steers typically hit a low through March because they finish during the sluggish summer market. To mid-April 850 steers averaged $133 in central Alberta, which is $11.86 per cwt more than the same week in 2011. The 850 basis was -16.89 per cwt by mid-month compared to the average for 2012 to date at -14.57 and a much more narrower -6.70 in 2011. Lightweight 550-pound calves came under some pressure in the past few weeks slipping down to an average as $174.75 by the first week in April but then bounced back to $178.50 at mid-month, which was a 19 per cent

improvement over last year. While calf volumes were smaller overall a larger percentage of heifers has entered the mix as cow-calf producers continue to evaluate the size of their herds. Feeder exports continue to climb, with 49,299 going south in the first quarter, a year-to-year increase of 79 per cent.

Non-Fed Cattle For the first time since April 2010 the current price of D1,2 cows dipped below the previous year. In mid-April Alberta D1,2 prices averaged $76.50, a decline of $3.95 per cwt from 2011. Part of this can be attributed to the increased competition from imported non-NAFTA beef this year. The spread between D1,2 and D3 cows narrowed to just $7 in mid-April when D3 cows averaged $69.50. Butcher bull prices continue to gain strength, reaching $88 per cwt at the start of April. Cow slaughter in Canada to the end of the first week of April was up two per cent at 146,749 head while cow exports were off 16 per cent at 37,415 head. Domestic bull slaughter reached 4,634 head in mid-April and exports rose two per cent at 9,623 head.

— Debbie McMillin

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

More markets➤

gish summer beef movement, which will keep prices steady to lower. It’s imperative that feeders stay current as break-evens through the summer are high and any backup in the system would pressure the market.

into August. However, the first quarter was flatter than we have seen in other years. It could be more of the same as we move through the summer depending on how the fed market fairs given the high break-evens already in place.

Feeder Cattle

Non-Fed Cattle

Any improvement in moisture across the Prairies would spur additional grass cattle interest in the coming month. Producers are still actively seeking top-quality replacement heifers, which supports the feeder market as well. On the heavier feeder cattle seasonality suggests an upward move right

Grinding and trim demand should remain strong in the coming months as the supply of cows is seasonally limited. Export demand for non-fed live cattle and beef will also support cow prices moving forward. Typically D1,2 cow prices increase through the spring and first few months of summer. Cattlemen / may 2012 55

Break-even Prices on A-Grade Steers 130

ALBERTA

170

110

90 80

Steer Calves (500-600 lb.)

180

120

100

Market Prices

190

160

western Market Summary

150 140

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

130

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 April 7)

April 2012 prices* Alber ta Yearling steers (850 lb.)............... $131.29/cwt Barley................................................. 5.14/bu. Barley silage..................................... 64.25/ton Cost of gain (feed)........................... 64.24/cwt Cost of gain (all costs)..................... 88.81/cwt Fed steers...................................... 113.02/cwt Break-even (August 2012)............. 120.38/cwt Ontario Yearling steers (850 lb.)............... $138.60/cwt Corn silage....................................... 52.48/ton Grain corn........................................... 6.31/bu. Cost of gain (feed)........................... 94.60/cwt Cost of gain (all costs)................... 120.07/cwt Fed steers...................................... 115.69/cwt Break-even (October 2012)............ 130.93/cwt *Mid-month to mid-month prices Breakevens East: end wt 1,450, 183 days West end wt 1,325 lb., 125 days

56 Cattlemen / may 2012

2012 Total Canadian federally inspected slaughter................ 737,859 Average steer carcass weight............................................ 884 lb. Total U.S. slaughter.......................................................8,511,000

2011 754,978 854 lb. 8,942,000

Trade Summary EXPORTS 2012 Fed cattle to U.S. (to March 31).................................... 107,820 Feeder cattle and calves to U.S. (to March 31)............... 49,299 Dressed beef to U.S. (to February)......................... 90.08 mil.lbs Total dressed beef (to February)........................... 118.25 mil.lbs

2011 124,381 27,659 82.81 mil.lbs 111.01 mil.lbs

IMPORTS 2012 Slaughter cattle from U.S. (to February) ................................... 0 *Dressed beef from U.S. (to February)................... 49.39 mil.lbs *Dressed beef from Australia (to February)............... 5.20 mil.lbs *Dressed beef from New Zealand (to February)......... 11.62 mil.lbs *Dressed beef from Uruguay (to February).............. 6.03 mil.lbs

2011 0 48.92 mil.lbs 1.67 mil.lbs 10.31 mil.lbs 1.52 mil.lbs

Canadian Grades (to April 14) % of A grades AAA AA A Prime Total EAST WEST

+59% 19.0 26.1 1.3 0.1 46.5 Total graded 165,021 587,341

Yield â&#x20AC;&#x201C;53% Total 13.3 56.4 3.1 39.6 0.0 1.4 0.6 1.1 17.0 Total A grade 98.5% Total ungraded % carcass basis 43,606 58.4% 0 82.5%

54-58% 24.1 10.4 0.1 0.4 35.0

Only federally inspected plants

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market talk with Gerald Klassen

A look ahead at the cattle market

ed and feeder cattle prices have been grinding lower since the seasonal highs were made in early March. I’ve had many questions from producers regarding the market outlook for the summer months. At the time of writing this article, feeding margins were in red ink by $70 to $100 per head and cow-calf producers had also seen 850-pound replacement values erode by a similar amount. I can almost sense the fear in the phone calls and emails because they always increase when the market turns lower. This has become a regular signal of overall market sentiment so in this issue I will discuss the market environment for the summer months. Cattle-on-feed numbers in the U.S. have been running two to four per cent above year-ago levels and carcass weights have been increasing. Therefore, second-quarter beef production will come in larger than earlier anticipated. Alberta and Saskatchewan on-feed numbers are very similar to year-ago levels but exports of slaughter cattle are down approximately 13 per cent. Carcass weights are also 30 pounds above year-ago levels in Western Canada so feedlots are backed up with market-ready cattle. When watching these factors, producers could see the market situation turn from a demand pull in early March to a supply push by the end of the month. The demand situation has also changed since the winter period. It is amazing how the market turns and then negative news tends to be the focus. The “pink slime” media hype came out in early March which psychologically weighed on consumer sentiment towards beef and retail movement started to slow. Restaurant demand tends to increase in March and April but once this is factored into the market, prices for wholesale beef start to fade into the summer months. Ground beef prices have come off the record highs but are still 15 per cent above year-ago levels. It is important to realize in the U.S. that pork and poultry prices are actually down from last year. Live cattle futures Nearby continuous weekly chart

The market corrected in April of 2010 and April 2011 followed by a consolidation period. We have seen the same price pattern in 2012.

Last year, it took six months for the market to fully recover after the April correction.

Watch out if the market breaks this long-term trendline. Breaking the trendline could result in major downward move.

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Income levels for the average consumer are also down in comparison to last year. Inflationary factors such as higher energy prices has eroded disposable income and this is price negative for the beef complex. People are spending more on food compared to last year but receiving less. Therefore, price-conscious buyers are looking at lower-priced pork and poultry to satisfy their protein requirements. U.S. GDP numbers will likely come in lower than earlier projections which reflects that consumer spending will not be as high. Consumer confidence has also reached a plateau for the time being. While restaurant and food spending is above last year, further increases in expenditures will be difficult to sustain. U.S. income levels is the largest factor influencing beef demand and should be closely watched by all beef producers. Feeder cattle prices have also deteriorated since the winter period. Feed barley values in southern Alberta during January were about $210 per tonne but reached over $245 by mid-April. Canadian feed barley and U.S. corn supplies will be historically tight at the end of the 2011-12 crop year which will continue to keep feed grain values well supported. The deferred live cattle futures have dropped by nearly $12 which has taken $162 per head of the expected revenue for slaughter cattle during August through October. Feedlot break-even prices are over $120 per cwt for the summer months and with the current market at $110 per cwt, feedlot operators are looking to bring down the price of replacements. There is also slower demand for feeder cattle given the backlog amongst major feeding operations. Cow-calf producers need to keep up to date on these factors otherwise you will miss marketing opportunities. I’ve attached the live cattle futures weekly chart. Technical analysis is based on repetitive price patterns as each market has an individual personality. Getting to know this market is just as important for your livelihood as knowing your significant other for a peaceful relationship. Since 2010, the April live cattle futures have experienced an “April sell-off” and this year was no exception. If you put your hand on a hot stove twice, the third time you will know the stove is hot and I mentioned to many producers that this late March-April market was vulnerable. Notice the market usually consolidates after the sell-off and then very slowly percolates higher. The trend is still higher and we look for a similar pattern as last year when the market then made new highs in early November. It took six months for the market to recover. When a market trends for a long period of time and then breaks the trend, there is usually a significant sell-off. This is the risk moving forward that producers need to be aware of. Gerald Klassen analyzes markets in Winnipeg and also maintains an interest in the family feedlot in southern Alberta. He can be reached at jkci@mymts.net or 204-287-8268. Cattlemen / May 2012 57

SALES AND EVENTS EVENTS May

27-29—Saskatchewan Stock Growers Assoc. 99th Annual Convention, Cypress Park Resort, Cypress Hills Park, Sask. 31—Canadian Western Agribition Annual General Meeting, Evraz Place, Regina, Sask.

AD INDEX Page Ag Growth Industries 9 Agco Industries 27 Agricultural Youth Engagement Foundation 22 Alberta Beef Producers 47 David Andrews 51 Bar T5 Agra Services 50 Beef Improvement Ontario 51 Boehringer Ingelheim 5, 25 Brett Young Seeds 7 Canada Beef Inc. 15 Canadian Angus Assoc. IFC Canadian Cattlemen’s Assoc. IBC Canadian Charolais Assoc. OBC Canadian Hereford Assoc. 30, 31, 51 Canadian Limousin Assoc. 51 Canadian Red Angus Promotion Society 51 Canadian Shorthorn Assoc. 35 Canadian Simmental Assoc. 51 Canadian Welsh Black Society 51 Case-IH 10, 11 Direct Livestock Marketing 48 Farmers of North America Inc. 33 Ferris Fencing 50 Fleetwood Farms Quarter 50 Frontier Western Shop 50 Giberson Performance Horses 50 Greener Pastures 46 International Livestock Conference 29 International Stock Foods 51 International Symposium 14 John Deere Ag Marketing Center 23 Lakeland Group/Northstar 14 a-p Livestock Markets Assoc. 53 Matchmakers Select 51 Merial 13 Merck Animal Health 43 Myterra Ranch 50 New Holland 18, 19 Norheim Ranching 51 Northwest Consolidated Beef 51 Pfizer Animal Health 21 Rafter 25 Ranch 46 Real Industries 14 Sandy Ridge Stallion Station 50 Saskatchewan Stock Growers 48 Southern Alberta Livestock 53 UCVM Beef Cattle Conference 17 Western Canada’s Farm Progress Show 49

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. 12—Alberta Cattle Feeders Golf Tournament, Paradise Canyon, Lethbridge, Alta. 14-15—UCVM Beef Cattle Conference, Coast Plaza Hotel, Calgary, Alta., www.vet.ucalgary.ca/beef2012 14-16—Canadian Angus Association Annual Meeting, Lethbridge Lodge, Lethbridge, Alta. 23—Youth Agriculture Conference — Ag Youth Engagement Foundation, Olds College Campus, Olds, Alta. 26—Western Beef Development Center Field Day, Termuende Research Ranch, Lanigan, Sask.

ment, Cottonwood Coulee, Medicine Hat, Alta. 23-24—Young Canadian Simmentalers National Classic Events and Show, Truro, Nova Scotia 23-25—Canadian Simmental Association AGM, Truro, Nova Scotia 23-25—Maritime Classic Show, Truro, Nova Scotia

September

11-13—Canada’s Outdoor Farm Show, Canada’s Outdoor Park, Woodstock, Ont.

January 2013

23-25—Saskatchewan Beef Industry Conference, Saskatoon Inn, Saskatoon, Sask.

February 2013

7-8—Manitoba Beef Producers AGM, Victoria Inn, Brandon, Man.  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

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, Ramada Inn, 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. 27-29—Saskatchewan Limousin Association 40th anniversary, Manitou Beach, Watrous, Sask.

STAMPEDE

By Jerry Palen

August

14-17—Canadian Cattlemen’s Association Semi-annual Meeting, Deerfoot Inn & Casino, Calgary, Alta. 15—Beef 2012 — International Livestock Congress, Deerfoot Inn & Casino, Calgary, Alta. 15—Cattlewomen for the Cure Golf Tourna-

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