Efforts to increase the number of bison in Canadian pastures and feedlots have industry leaders looking across the fence line for potential new producers.
Mark Silzer, president of the Saskatchewan Bison Association (SBA), said the bison industry is encouraging beef producers to consider opportunities in bison production.
Beef prices are low, profit margins are thin and breeding herds are shrinking.
By comparison, bison prices are strong, supply is short and the industry is looking for ways to increase production and ensure a consistent flow of animals into feedlots and packing plants.
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Although production costs for bison producers are generally higher, rail prices for bison are almost double what they are for slaughter cattle.
“I think that there are lots of opportunities out there right now,” said Silzer, who spoke in Humboldt, Sask., at a bison industry and producer meeting sponsored by the SBA.
“Beef producers need to weigh the pros and cons of bison production to see if it works for them but … when you look at where the numbers are right now and when you look at the demand for our product, I think we’re looking at stable, profitable prices well into the future.”
Silzer said the bison industry has identified beef producers as a potential solution to supply issues that are hindering further growth.
Beef producers have experience in livestock production, a land base suited for grazing and a production infrastructure already in place.
What they don’t have are strong markets.
Silzer said the SBA has been telling beef producers that opportunities exist in the bison industry, and diversification could provide a solution to their cash flow problems.
“We’ve done some advertising and we’ve had a greater presence at stock growers meetings, just to see if there is some interest out there,” he said.
“We’re not looking for everybody in the beef industry to switch to bison, but we’ve got a very limited supply right now. We haven’t seen a lot of new entrants into the (bison) industry and I think a lot of our existing producers have maxed out there carrying capacity.”
He said the Canadian bison industry could accommodate annual growth of 10 to 15 percent per year without having a significant negative impact of prices.
“When you look at the marketing groups that we have in the industry right now … they can market what we can produce,” he said.
Saskatchewan bison producer Doug Griller said beef producers are asking questions about converting to bison, especially in the United States where grassland is plentiful.
He said existing bison producers must also focus on getting more out of their operations and improving efficiency.
“Existing producers can do better than they’ve been doing by better utilizing the grass resources that they’ve got and also by learning more about the productive nature of the animal,” Griller said.
Some bison producers who left the industry a few years ago are considering a return and new producers are looking at bison as a stable, profitable alternative to beef production, he added.
However, securing financing remains a significant hurdle.
“The banks really haven’t got their arms around bison production again since we had the downturn in the 1990s,” he said.
“It’s not that they won’t look at you … but it’s tough. In my mind, the livestock industry as a whole has left a sour taste in their (the bankers’) mouths, from hogs, to beef, to sheep. We’re all grouped in there together and even though bison might be a success story right now, the banks seem to be pulling their lending portfolios down.”
Griller advised new entrants to have a solid business plan and speak with an existing bison producer who knows the industry.
“Find a mentor. That was one thing we didn’t have when we were growing the industry,” he said.
“A new entrant into the business today has the advantage of all that knowledge that wasn’t there when we started.”
