DAUPHIN, Man. – Some northern Manitoba grain farmers are looking at building a feedlot to get rid of their grain, said the secretary treasurer of the organization.
Jim Kaleta said with the Aug. 1 end of the Crow Benefit, which subsidizes the cost of shipping grain to port, farmers have to look at creative ways to get a higher price for their grain.
“The price of barley is set here by southern Alberta. We’re always discounted the price of freight,” said Kaleta, of Intermountain Ventures. “A little more diversification leads to more survival.”
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A group of about 40 investors is looking at the feasibility of an 8,000-head feedlot to finish cattle from their area. About 70,000 to 80,000 animals go through the auction markets within a 160-kilometre area around Dauphin.
“The calves are here, the grain is here, everything is here,” he said.
Cost of start-up
Despite the colder climate, with lower feed costs Kaleta estimates a feedlot in the area should be able to put a pound of gain on the animals for the same price as feedlots in Alberta. He estimates it would cost $2 million to $3 million to build the feedlot, not including cattle.
“It’s a lot cheaper to ship a pound of beef than seven or eight pounds of grain,” he said.
The farmers who are interested are grain farmers who want a market for their grain, but don’t want the cattle “under their fingertips,” he said. Other older farmers just don’t want to start feeding cattle all over again.
“For others, it’s just an investment with a good return,” he said.
“It’s not a place to put your money, it’s just so you can survive down the road.”
The main thing that would hamper the feedlot from proceeding quickly is the price of grain, said Kaleta.
With the current high price, farmers may think they don’t need to change.
