Promising cattle prices may deter producers from retaining ownership of their calves this fall, said a Saskatchewan livestock development specialist.
“With prices the way they are, that would encourage the movement of those cattle rather than retaining them at all,” said Bill Kowalenko from Saskatchewan Agriculture.
The average selling price for 500-600 pound calves hovers around $1.30 per lb. in Saskatchewan and in Brandon and Winnipeg, Man. Kowalenko said most other cattle classes are looking equally good. For many cattle producers, the price may be too attractive to pass up.
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“There’s pretty good prices being offered for these cattle. If a person needs to generate cash flow he’s probably going to sell his calves,” Kowalenko said.
A cattle manager at Pound-Maker Agventures near Lanigan, Sask., said the feedlot business has not seen anything out of the ordinary.
“Most of the people that normally sell their cattle direct to us are still interested in selling,” said Brad Welter.
Welter said the feedlot has had several inquiries about retaining ownership over the past few weeks. Producers are wondering if they should background and even finish their own cattle themselves.
“I really don’t want to give that advice to them, but I just want to make sure that they realize where the price is today and what they could receive today,” Welter said. “There’s no guarantee to what the price may be in January or February when they decide to sell their cattle.”
There are risks associated with retaining calves through the fall. Jamie Blacklock, general manager with the Saskatchewan Cattle Feeders Association, said producers need the resources and knowledge to properly feed the animals.
“I would encourage the people doing it that they have weighed everything out and that they’re making the appropriate decision.”
Added Welter: “People will still only be wanting to buy lean cattle, you know, cattle that are not overfed on grain.”
Using up on-farm surplus feed might be the only reason for farmers to resist selling, Kowalenko said.
“The only option to retaining or maybe buying calves to feed would be if you want to try and convert your feed grain that you have on hand, that they can’t move otherwise, through beef,” Kowalenko said.
There is an abundance of forage this year, which means little market for producers who want to sell it.
Some frost-damaged grain is left over from last year, as well, and still usable as cattle feed.
“Historically, we’ve been seeing a lot of calves sold in the fall and they end up leaving the province, either to Alberta, or it used to be the United States,” Kowalenko said.
