It was a hard summer for feedlot operators such as Bill Freding as they lived with a collapsing cattle market in a world of over supply and limited demand.
Since a case of bovine spongiform encephalopathy stopped trade May 20, he has struggled to find new markets for his cattle that typically went to Washington state.
“We eventually got them into Alberta, but it wasn’t a very good price,” said Freding, who has a 6,000 head feedlot at Oliver, B.C.
Now he joins other Canadian livestock producers as they evaluate the United States Department of Agriculture proposed guidelines to allow cattle, sheep, goats and cervids back into the market.
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Freding is concerned the new rules could result in American buyers discounting Canadian cattle.
For example, the rules state intestines must be removed and disposed of separately at the plant, and Freding wants to know the costs associated with that procedure.
“I don’t know how big of an impact that will have on these guys buying Canadian cattle.”
The announcement that proposed U.S. guidelines had been posted was made Oct. 31. A satellite sale offering 7,000 head on Oct. 31 saw a significant jump in prices for certain classes of cattle.
“I don’t know if it was related to the border opening announcement,” said Blair Vold, owner of Vold, Jones and Vold Auction in Ponoka, Alta., which handled the sale.
“This fall has been a pleasant surprise from what we expected and it is going to continue on to hold strong.”
However, the number of cattle offered for sale has been down considerably this fall. Canfax reports feeder sale volumes are down 37 percent compared to the fall of 2002.
Vold estimated up to 30 percent of his customer base opted to retain calves to feed into the new year and sell later when the border opens.
“It’s not a bad gamble if you’ve got the feed. I don’t think you’re going to get hurt on this,” he said.
While prices have been better than expected, they would likely have been 10-25 cents a pound higher if the border had been open.
“That’s the price we pay for not being able to send our calves across,” Vold said.
Cull cows and bulls continue to be the major problem, selling for around 20 cents a lb. In normal years prices are more than twice that amount.
“I don’t anticipate a big jump in the cow market for some time until something happens with the border opening,” Vold said.
“We might see some cows getting fed here and go into our domestic product as a grain-fed animal. That’s a hard one to see. It depends on the plants’ reaction, what their numbers are, because they will have to be sold here.”
Ann Marie Hauck, chair of the Canadian Goat Federation, raises pure-bred goats and sheep at her ranch near Cochrane, Alta. Her concern is that the age limit for goats and sheep has been set at 12 months.
“I don’t know where the arbitrary one year of age thing comes in. I would also like to know how they are going to determine that.”
Checking the number of teeth is commonly accepted as proof of age, but different species loose their teeth at varying ages. She has already contacted American clients to push for change on the age restriction.
A major purebred exporter, Hauck is also concerned about the continued ban on breeding stock.
