The big fish eat the little fish. The same goes for ranchers, it seems.
Statistics Canada numbers released this spring seem to indicate that many smaller cattle producers have sold off their herds and been swallowed by larger ranches.
The official numbers for 2006 show that the number of Manitoba farms that they say produce cattle has dropped 9.8 percent to 10,217, down from 11,333 in 2001.
Over the same period, the province’s cattle herd has increased by 10.4 percent to almost 1.6 million from 1.4 million.
The average number of cattle per farm has also risen to 154 in 2006 from 126 in 2001.
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Martin Unrau, president of the Manitoba Cattle Producers Association, said the numbers show many smaller producers have sold out. At the same time, larger ranchers with more pasture room have dug in their heels and kept older cattle in an attempt to ride out the lingering impact of BSE.
“I think this fall is going to tell the tale of how many cattle we’re going to have left in Manitoba,” he said.
Since the beginning of 2006, estimates put the number of cattle producers who have left the industry at 700.
Unrau divided the industry leavers into three groups: the ones who couldn’t make it and sold their farms; older producers who couldn’t get out during BSE and thought they would hang on until the market improved in 2006; and younger farmers who have switched into grain or gone west to work.
Last fall, auction marts were offering a record number of bred cow sales, which ran well into the New Year, and even into late spring.
“That’s unheard of,” said Unrau, adding that December is traditionally the cut-off date.
Looking ahead, auction marts are already receiving bookings for bred cow sales, and a number of producers have been making inquiries.
Unrau wondered about Statistics Canada’s cattle inventory numbers, saying they might be a bit high.
“The numbers were up a little bit. I kind of question them, though. I think there were a lot of cows that just disappeared. People were too embarrassed to take them to town because they were just old and bony.”
With prices for cull cows sagging at five to eight cents a pound, many cattle producers may have opted to put the worst of their animals on the compost pile, he added. With the cost of shipping them at around $40 per head, plus fuel, breaking even on them would be iffy.
“A lot of old cows never made it to market. They kept them too long because of the BSE situation in 2003 and 2004. Even in 2005, they were worth nothing.”
