From the Field

I just spent the last two weekends in Quebec and Ontario attending the first female sales of the fall season. The quality was very good, the enthusiasm was high and the sales were strong. Everyone is talking about the fall yearling market and how strong the calf market has started. In the east there were many reports of calves with milk still dripping out of their mouth over $1,000 and some Charcross yearling steers weighing 1,070 lbs. bringing nearly $1,400. Wow. The interesting thing in this was the yearlings were bought by a packer to put on feed so you wonder how nervous they are about future supplies and costs.

I was also talking to an auction market manager in Manitoba who told me about their regular sale in late September. One package of 72 exotic cross steers weighing 703 lbs. sold for $1.41. He went on to say the 600 lb. calves were bringing the $1.40 but the extra hundred pounds was just an extra $140 dollars. Pounds are paying as the feed prices increase and we need to sell this story to the industry. Charcross feeders are worth more when feed prices are high, as they are faster growing, which means more efficient. I have said it before and it is worth repeating, the only thing free in the cattle business is hybrid vigor and everyone needs to take advantage of it.

So what does the crystal ball into the future show? Don’t we all wish we knew, but I think there are some positive situations that make this look like it could be longer term. The drought in the southern U.S.A. will prolong the shortage of beef in North America in the coming years. Texas A & M University estimates that 500,000 beef cows will be sold out of Texas because of the high cost to feed them. This is about 10% of their beef herd. Now many of these will go to slaughter as will many more out of Oklahoma with some estimates of 12% of their cowherd of 2 million leaving. Considering as of July 1st we only had 4.2 million beef cows in Canada, these are significant numbers.

We also know there are a number of commercial producers in Canada packing it in, adding to the overall number decline. Rich Nelson, the director of research at Allendale Inc in Illinois suggests cattle futures may reach an all-time high of $1.36 a pound within the next year. In the short term this increased cull out of Texas and other places may limit the increase in prices but after these get through the system there will be short supplies and higher prices.

The Charolais female sales this fall will provide some great opportunities for existing breeders to expand and new breeders to get started. As I stated in my Fall Connection article, I truly believe this is the best opportunity, since the rise to dominance of the Charolais bull in the early ‘80s, to become a Charolais breeder.

With the strength of the Charolais bull market and the future outlook, we need to have more Charolais breeders. We all need to try to encourage purebred breeders from other breeds to diversify into the Charolais business like many Charolais breeders did 15 years ago quite successfully. Running two complimentary breeds can be beneficial, to both sides of the operation, as many commercial producers out there are running more than one breed of bull. If they can go to one farm or one sale and get all their needs looked after by someone they like dealing with, it will be good for both parties involved.

My concern in all of this is the lack of Charolais breeders in some areas. This provides many problems. One you don’t have anybody promoting and defending Charolais in the local coffee shop or curling rink. Two, if there isn’t a breeder in some areas, the commercial producer may just buy a bull of another breed because it is more convenient not because he wants to. Three, the contracting of breeder numbers will continue and there will become even fewer Charolais breeders.

Let’s all do our part this fall to spread the Charolais word. By attending and participating in some of the commercial and purebred shows and sales this fall, you will be helping to create the enthusiasm about Charolais needed in our industry. Enthusiasm breeds enthusiasm and this will help us expand into the next decade and beyond.

See you down the trail this fall or give me a call if you have some ideas or comments for me. Craig and I are always ready to be of assistance.

Until next time,

Helge

Helge By

CYPRESS HILLS CHAROLAIS BREEDERS

President: Darwin Rosso Secretary/Treasurer: Murray Blake

Cedarlea Farms

Garner & Lori Deobald Box 294, Hodgeville, SK S0H 2B0 T/F: 677-2589 • g.deobald@sasktel.net

Wood River Charolais

Murray & Nicole Blake Box 86, McCord, SK S0H 2T0 T: 478-2520 • woodrivercharolais@sasktel.net

N3 Stock Farms

Lyle & Lynn Wilson Box 37, Admiral, SK S0N 0B0 T: 297-6263

Rosso Charolais

Darwin & Kevin Rosso #78, 325 4 Ave. SW, Moose Jaw, SK S6H 5V2 T: 693-2384 • rosso.c@sasktel.net

Char-Top Charolais

Glen & Lyn Sauder Box 569, Gull Lake, SK S0N 1A0 T: 672-3979

Prairie Sky Farms

Lloyd & Christina Daniels Box 185, Avonlea, SK S0H 0C0 T: 868-4429