Prices for all classes of cattle have been sliced in half since international borders fell like a guillotine as a result of bovine spongiform encephalopathy.
Steers dropped $20 per hundredweight in one week to the mid $40 range by June 27, reports Canfax. Last June, finished animals sold for a little more than $90 per cwt.
In addition, the market analysis agency reported D1, 2 cows were selling between $17-38 per cwt. while D3 cows were fetching $10-$25.
Feedlots are not interested in buying replacements. Total volume of feeders moving in Alberta hovered around 3,000 head for the week of June 23. That was 92 percent below trade last year for the same period.
Read Also
Dry summer conditions can lead to poor water quality for livestock
Drought conditions in the Prairies has led to an decrease in water quality, and producers are being advised to closely monitor water quality for their animals.
Low prices are keeping cattle at home.
“Numbers are way down. Cattle are not coming in like they should be this time of year,” said Blair Vold at Ponoka, Alta.
One of western Canada’s largest livestock auctions, Vold Jones and Vold has sold some cattle because producers said they needed the money.
“Guys are having to sell because they ran out of feed. Some are dumping cows to get some cash flow,” Vold said.
It is wrong to assume that once the border reopens, trade will automatically resume, Vold said.
New trade regulations and restrictions are expected to change marketing patterns.
“We’ll have to find a new way of thinking and marketing,” he said.
“The dribble down effect will hit home soon.”
Jason Danard of Calgary Public Stockyards agreed.
Last week’s regular sale saw five head appear in the ring at Strathmore.
“Trade is way down and the prices are off,” Danard said.
He manages the TEAM weekly electronic sales. Last week, about 1,200 fat cattle were offered for bids between 48.5 and 52.5 cents per pound.
“Every indication shows they will go a lot lower,” he said.
XL Foods and Cargill Foods were the only bidders, because packer storage remains tight.
In addition, finished animals are getting heavy. Fed animals were offered between 1,250 and 1,550 lb. Canfax reports steer carcass weights are increasing to more than 800 lb., adding more beef to the glut.
Marketers are also warning the cull cow and bull trade could be sharply diminished in the future. BSE shows up in older animals and fewer buyers may be willing to risk handling them.
“I think we’ve pretty well kissed it goodbye,” said Bill Jameson, an order buyer from Moose Jaw, at a producer meeting in Minton, Sask., on June. 24.
“We’ll cull our cows on the farm with a rifle. Hopefully the hides will be worth $200,” he said.
The purebred industry is likely to feel the effect of lower prices and no export markets this fall, said Wayne Burgess of Venture Livestock Enterprise in Airdrie, Alta.
“I don’t think people realize how far down in the food chain this will ripple,” he said.
He expects a sharp decline in cattle values when international buyers stay away. Breeding animals are not culled until they are old and unproductive. Burgess predicts a slow market for the next two years.
Canada’s lamb industry is also caught up in the ruminant export ban. Alberta Agriculture reported on May 23, that lambs weighing 95 to 110 lb. were selling for $120 per cwt. in central Alberta. Prices have dropped by $5 per cwt. a week since.
Closing lamb prices on June 26 were $96 per cwt.
