Shock waves from the disrupted cattle market will be felt long after the American border reopens to Canadian cattle, says an Alberta Agriculture beef specialist.
The disrupted markets, no markets or lower prices will force cattle producers to look beyond the traditional ways they’ve sold their cattle, said Christoph Weder.
“We’ve got to get some ideas out there. We’ve got to get some forward planning,” said Weder. He and a group of other Alberta Agriculture specialists have come up with ideas to help producers deal with limited or delayed markets.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Markets may not be back to their traditional levels by this fall, and producers can see their entire profits wiped out if prices remain low, said Weder.
Already packing plants are paying $250-$300 a head less for fat cattle. Multiply that by 300 head and almost $100,000 will have vanished, Weder said.
“It’s not funny.”
Producers can slow the gain of their animals, keep heifers in the fall instead of selling them at depressed prices, or fatten cull cows instead of sending them to market.
The following is a partial list of strategies the Alberta Agriculture staff put together to help farmers through an unexpected price drop.
Feedlot cattle strategies
- Reducing dry matter intake by 20 percent will reduce gains without adversely affecting quality.
- Stage the transition to reduced dry matter over five to 10 days.
- Feed cattle twice daily, spaced three hours apart, with the initial feeding by 9 a.m.
- Increase bunk space or split pens to even the feed intake among animals.
- Do not limit feed for cattle that are less than 45 days since their last implant.
Grass cattle strategies
- Lower gains on grass allow producers to shift marketing dates.
- Use rotational grazing to extend the pasture season.
- Rent more pasture or seed annual pasture.
- Sort cattle by weight. Keep the lighter cattle.
- Use a protein supplement to improve pasture use.
- Limit pasture to restrict gain to the lowest feasible level.
Breeding grasser heifers as a strategy
- Look at breeding heifers that were originally bought for feeders. This option can delay marketing from six to 24 months.
- Be prepared for extra winter feed and calving facilities.
- Lease bulls from an early-calving herd.
Cow-calf strategies
- The cull and slaughter cow markets may take the longest to strengthen.
- Plan for additional pasture for these animals.
- Seek lease or custom feeding arrangements.
- Slaughter bull markets may be under pressure.
- Keep careful records of these animals.
Management ideas for all industries
- Cash flow may change. Meet early with financial institutions or feeder associations to discuss repayment challenges and solutions.
- Develop several management plans that can reflect market changes in the short and long term.
- Develop and maintain budgets and cash flow statements.
- Keep up to date with facts and information.
- Review cost of production to evaluate the profitability of each plan.
For more information, go to www.producer.com and click on links in the news.
