Industry leader bases his optimism on steady beef demand, a smaller herd and the probability that feed prices will fall
It was an awful year, but Manitoba cow-calf producers are filled with hope about coming years.
That feeling came out of the Manitoba Beef Producers annual meeting.
“I’m optimistic,” said MBP president Tyler Fulton.
“There’s good reason for optimism, I think.”
The drought has been terrible for cow-calf producers on both sides of the Canada-U.S. border, but that has led to a smaller cow herd. Canfax analyst Brian Perillat said higher calf prices should be coming and those higher prices could be substantial.
Read Also
No special crop fireworks expected
farmers should not expect fireworks in the special crops market due to ample supplies.
If tighter calf stocks lead to an average sharing of the beef dollar with producers, and feed costs come down a few dollars from today’s extreme levels, calf prices could jump by $1 per pound.
“Here’s the opportunity for cow-calf producers to get a lot more money out of the system here this fall compared to last fall,” said Perillat.
“I’m not going to guarantee it’s going to be there this fall, but hopefully in the next two to three years we start to see some good calf prices.”
Fulton said he was cheered by the heavy snowfall that has covered Manitoba fields, offering hopes for much better plant growth this spring and a mitigation of the drought.
And the steady consumer demand for beef, even at high prices, plus the smaller herd, should lead to much better producer returns.
But he said it’s too early to conclude good times are on the point of returning.
“There’s a lot of things that can throw a wrench into things,” said Fulton.
Producers are heading into 2022 with savaged margins, so they need relief.
“There are still widespread cash flow deficits on Manitoba cattle operations,” said Fulton after the meeting.
MBP spent time last summer lobbying federal and provincial government for emergency aid, succeeding in numerous program changes to provincial and federal programs that allowed new and existing relief money to get to affected producers.
Provisions affected everything from feed transportation costs to liquidation and restocking costs.
“Countless hours were spent on advocating for programs and services to help producers cope with the challenges caused by the devastating drought conditions,” said Fulton, who managed to get the federal agriculture minister, Marie-Claude Bibeau, to visit the Interlake region in the height of the drought last summer.
“Manitoba Beef Producers thanks both levels of government for listening to those concerns and for making those valuable changes.”
MBP general manager Carson Cullers said he thinks cow-calf producers will benefit from growing concerns about environmental protection.
“The beef industry has the opportunity to be a major champion… given the environmental services it provides while producing a high-quality product,” said Cullers.
“I believe the environmental benefits beef producers are providing are key to levelling the playing field between beef and other commodities.”
