It’s a problem many beef groups would love to have: more high-end markets than cattle to fill them.
Heritage Angus beef, a group of 14 cattle producing families from Alberta and Saskatchewan, can’t fill all their existing orders for their sustainably raised beef, said one of its members.
Cliff Drever of Prairie Land and Cattle Co. said the group has orders for the equivalent of about 100 head of cattle a week.
Depending on the week, they sometimes have 100 head. Other weeks they have only 50 head from the Hagel Feeders feedlot in Three Hills, Alta., ready to be slaughtered.
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“It’s the first time we’ve had more market than cattle,” said Drever of Camrose.
About 60 percent of the group’s beef is sold within Canada to Sobey’s in Quebec and Ontario, Hero Burgers in Eastern Canada, Quality Foods on Vancouver Island and Canadian Mountain Holidays.
The rest of the beef is sold to high-end European restaurants. A small amount goes to Saudi Arabia.
What began as a way for the cattle producers to have more control over their markets after BSE devastated the cattle industry in 2003 has become a prairie success story.
“It’s a feeling of control,” said Drever.
After BSE, other cattle producers formed loose associations to try and find markets that would bring them higher than the rock bottom prices.
Like plans for small community-run packing plants, the other beef marketing groups faded away.
“The reason we have been successful, is we’ve been as tenacious as hell,” said Drever, describing trips overseas to find restaurants and stores interested in buying beef from their family-owned prairie ranches.
Their story of raising beef without hormones or antibiotics on ranches that promote sustainable agriculture appeals to European buyers.
“It appeals to customers who are concerned where beef comes from.”
It’s about sustainability for ranches and their families and fair trade, he said.
The group has survived because it strives for consensus during its twice-a-year family meetings where members sit in a circle and discuss an issue until there is consensus.
“It sounds crazy and it takes a lot of work, but at the end of the day everyone is satisfied,” said Drever.
“It’s survived because producers feel a part of it,” he said.
But not all of the group’s original producers have stayed on.
Cash flow problems forced some of the families out of the group. Through their organization’s design, producers keep ownership of the cattle during their time at the feedlot and final sale. They must also pay the feed bill at the feedlot.
The owners are paid an initial price once they’re slaughtered at the European Union certified Canadian Premium Meats plant at Lacombe, Alta., and sold. A final price isn’t paid until the end of the year.
Retaining ownership of the cattle for two years without a paycheque isn’t an option for some producers who are already financially stretched.
Depending on the time of year, there may not be a premium paid for the sustainably raised beef
Drever said their beef sells for more than “commodity beef,” but costs are also higher.
Through a new pilot project with the Alberta Cattle Feeders Association, problems with cash flow may change.
Under the pilot project, the owners can access money through the feeder association and still retain ownership of the cattle.
Because the group is concentrating on developing local and overseas markets and not shipping beef to the United States, it has been able to access money from government programs like the Alberta Livestock and Meat Agency and through the Beef Information Centre and the Canadian Beef Export Federation, for meat shelf dividers and other point of sale material.
Now that the group has worked for seven years developing solid European markets, it is hoping to attract other producers who want to fill the niche markets.
“We’re looking for like-minded people.”
The ideal producer has 300 to 400 head of cows and is able to supply uniform bunches of calves to the feedlot.
“If we can’t get the cattle, we will have to pick who we sell to.”
