RED DEER – A recent economic impact study of Alberta’s feedlot sector has revealed a multibillion-dollar industry responsible for thousands of jobs in rural communities and support to local businesses.
Commissioned by the Alberta Cattle Feeders Association, the study found that the industry contributed more than $1 billion in direct economic benefit to the provincial economy in 2008. In addition, indirect economic benefits through the purchase of goods and services contributed another $2.6 billion in gross output and $1 billion to provincial gross domestic product.
Serecon Management Consulting completed the study with funding from the Alberta Livestock and Meat Agency.
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“It lays out some bare facts about what we do,” said association manager Bryan Walton.
A similar study was conducted about 15 years ago. Since then, smaller feedlots have closed and larger facilities have formed, but Walton said most of them have remained family owned operations rather than corporate controlled entities.
Alberta has 200 to 250 feedlots, based on the association’s membership list, and most are concentrated in the southern half of the province. They range in annual capacity from a few hundred head to feedlots with a capacity of 40,000 head.
A typical mid-sized feedlot feeding 10,000 head per year had a direct economic impact on the provincial economy of $5 million, and indirect impacts of another $6.5 million.
The province’s feedlots employ more than 2,000 workers, but total direct and indirect employment increases to almost 12,000 when including supporting industries. Employment income generated by the industry was approximately $500 million in 2008.
Alberta fed 2.2 million head of cattle in 2008, representing two-thirds of the total fed cattle in Canada. More than 80 percent are slaughtered and processed in Alberta.
