LANIGAN, Sask. – More cows and a better market are fueling an expanding cattle industry in Saskatchewan.
Brad Wildeman of the Canadian Cattlemen’s Association told producers attending a recent Western Beef Development Centre field day at the Termuende research farm near Lanigan, that Saskatchewan has mostly recovered from the BSE crisis and has built on the experience.
He said BSE hurt many producers and BSE-related losses can’t be forgotten. However, the post-BSE beef production climate in Western Canada is a warm one, he added.
“Our cattle are now trading at the best (United States) basis they have in the past decade, so when it comes to BSE we have recovered on price.”
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Saskatchewan has been expanding its herd and now has 30 percent of the nation’s cow herd.
“We surpassed Montana this year and Kansas will be next,” Wildeman said, citing Saskatchewan’s 1.53 million cows compared to Montana’s 1.4 million and Kansas’s 1.55 million.
“We are showing them that we can compete, even when they tie one of our hands behind our backs,” he said, referring to Canadian producers’ inability to ship live animals into the U.S.
Rule 2, the American law that would allow the export of cattle and breeding stock older than 30 months, is expected to be posted for discussion in the next two weeks and the Canadian Cattlemen’s Association estimates it will be another year before the border opens.
Wildeman told producers in Lanigan that good science surrounding BSE will again take a backseat to politics and public opinion when it comes to Rule 2.
One third of all U.S. senators are elected every second November and Wildeman said no American politician will risk votes by endorsing or opposing the import of Canadian livestock.
Korea, too, is using American politics to restrict Canadian meat and livestock from entering the U.S.
“They argue that Canada’s export of beef to the U.S. and the export of Canadian live animals pose a potential threat that country’s food security,” Wildeman said.
The Asian nation claims Canadian beef contaminates U.S. supplies that would be sold to Korea.
“I expect it will take a trip to the (World Trade Organization) table to settle that issue,” Wildeman said.
Korea is not the only country using Canadian imports as leverage.
The U.S. is in on the act, telling Mexico if it was to find a way to import Canadian live animals, it would be subject to an American import ban on that country’s live and older exports.
In a recent trip to Mexico’s annual meeting of cattle producers, Wildeman said he was bombarded by growers looking to make contact with Canadian purebred breeders and exporters of both dairy and beef.
“There will be a market there when Rule 2 goes into effect,” he said.
As Canadian beef regains markets worldwide, Wildeman said the major threats to Canada’s export market are Chile and Uruguay.
Those countries have animal identification and traceability systems and are expanding their grain-finished production.
Wildeman said Saskatchewan will be at the centre of Canada’s expanding beef industry because of lower costs of production and because public acceptance of livestock production is greater in Saskatchewan than it is in any other province.
“There will never be another major livestock production announcement in Alberta. It’s too urban now, too many people who would prefer not to have agriculture as their neighbours.
“Wage rates are the highest in North America and land prices and environmental issues are making Alberta less than attractive for new developments. This is a big opportunity for Saskatchewan,” said Wildeman.
Cattle feeding is expanding slowly in Saskatchewan, largely because of shipping costs.
A fed calf in Strathmore, Alta., costs $10.10 to ship to a packer in Brooks, Alta. Shipping the same calf to Brooks from a feedlot at Lanigan costs the finisher $41.90.
