Alberta cattle are expected to eat as much as one million bushels of
American corn this year because local barley became too expensive.
“Barley simply priced itself out of the feed market,” said Errol
Anderson with Pro-Market Communications. He estimated corn will replace
about one tenth of the grain fed to Alberta cattle in this crop year.
“It’s a million tonnes right off the hide of the barley market,” said
Anderson.
A combination of high-priced barley, drought and grain farmers
Read Also
Interest in biological crop inputs continues to grow
It was only a few years ago that interest in alternative methods such as biologicals to boost a crop’s nutrient…
hoarding grain in hopes of higher prices sent feedlot operators
searching in the United States for cheaper feed.
The switch to corn from barley was simple for most large feedlots.
“It’s strictly a matter of economics. It’s not a complicated decision,”
said Colleen Van Raay, grain buyer for Van Raay Farms, one of the
largest feeders in southern Alberta.
She was able to buy corn $5 to $10 a tonne cheaper than barley.
Van Raay of Iron Springs, said their cattle were switched from barley
to a 100 percent corn ration.
In October, the price of corn at Lethbridge ranged from $150 to $155 a
tonne, while barley was $160 to $165. For some large feedlots, a $15
per tonne saving shaved $200,000 off a $3.3 million per month grain
bill.
Ed Thiessen of Namaka Farms, a 26,000-head feedlot in Strathmore, said
he chose to feed a 50-50 corn-barley ration. He wanted to take
advantage of lower corn prices but didn’t want to alienate his longtime
barley suppliers.
“It’s the first time in 32 years of feeding cattle we’ve used corn.
Hopefully it’s the last,” said Thiessen, who normally uses about 12,000
bushels of barley a day.
Dave Plett, head of Western Feedlots in High River, said his company
did not switch feed at its 100,000-head capacity feedlot. Over the past
two years, the feedlot has developed a specialized barley-buying
program to ensure a steady supply of high quality grain.
“We have a network of very supportive, preferred suppliers,” said Plett.
The company feeds about 250,000 tonnes of barley, worth about $40
million each year.
High barley prices were not the only factor that sent feedlots in
search of an alternative feed, said Dave Guichon with Feedlot
Strategies, a Calgary grain brokerage company.
Last summer during the worst drought in years, feedlot operators were
concerned about finding a steady feed supply. Farmers, unsure what kind
of crop they’d have and anticipating rising prices, wouldn’t lock in a
price.
“Feedlots were forced to go to the U.S. They didn’t intentionally say
‘to hell with the Canadian farmer,’ ” said Guichon.
Around Lethbridge, where the majority of Alberta cattle are fed,
Guichon estimates about 85 percent of the cattle are fed some corn in
their rations.
Between 100,000 and 150,000 tonnes of corn are brought from the U.S. by
train to the Lethbridge area each month. It’s less economical for
feedlots farther from Lethbridge to feed corn because of added
transportation costs.
Guichon said there is little price difference now between corn and
barley, but feedlots can’t easily switch back to barley-based rations.
Animals must be gradually introduced to new feed, so it will likely be
May or June before enough barley comes on the market to allow feedlots
to change back.
Albert Wagner, president of the Western Barley Growers Association,
said barley growers would rather have corn come into Canada temporarily
if it keeps feedlots strong.
“We’re in partnership with these producers. We both need to make money
to be viable.”
