beef

Question 1

canada as a beef exporter

Answer 1

• Canada is a small player on the world
  stage in terms of overall production
• However, Canada is a fairly significant
  exporter of grain finished, high-quality
  beef
• Exporting beef is an important aspect of
  this industry in Canada, we cant eat all the beef we produce
  -USA is our largest export

Question 2

overview of beef industry

Answer 2

• 54,000 beef producers and dropping
• 2005: Peak cattle inventory at 17 million
  – BSE effect!!
• Dropping steadily since then now at 11
  million head
• The industry has been in a period of
  significant contraction
• Beef cow numbers are at 3.46 million

Question 3

western canada concentration of beef

Answer 3

• Beef production is concentrated in
  Western Canada
• > 80% of beef cow herd in 3 prairie
  provinces
• Alberta dominates fed cattle production
  by feeding 2/3 of the cattle destined for
  slaughter
• Alberta would be ranked 4th for fed
  cattle production when compared to
  U.S.

Question 4

industry segmentation

Answer 4

– Cow calf industry which is predominated
by small herds
– Intermediate stages of backgrounding and
stocker operations
– Feedlot industry which is predominated by
larger commercial operations (primarily
southern Alberta)
-three phases are: cow-calf, background/ stocker, feedlot

Question 5

backgrounder

Answer 5

• Feed cattle for growth prior to going into a
  feedlot for finishing
• May occur on original cow-calf ranch or
  may involve a change in ownership
• Backgrounding involves feeding calves for
  a shorter period for moderate weight gain
  (1 kg/day)
• Medium-low energy rations (forage based)

Question 6

stocker

Answer 6

• Stocker operations utilize forage and crop
  residues
• Grain stubble, wheat pasture, grass
• Often will involve utilized pasture on
  calves that have been backgrounded the
  previous winter
• Will be sold as yearlings for a short period
  of finishing in the feedlot

Question 7

feedlot

Answer 7

• Fed in pens where harvested feed is
  brought to them
• High energy diet (barley & barley silage)
• Cattle may be 12-24 months of age by
  time of slaughter
  -calves fed for 180-280 days, yearlings 100-180 days
  -* Target slaughter weight of 1250-1550 lb
  (live) for steers
• High energy, low roughage diets to
  optimize growth
  -most in AB

Question 8

Why is the feeding industry
concentrated in Alberta?

Answer 8

• Access to grain
• Access to weaned calves
• Dry semi-arid climate which is ideal for
  cattle production
• Established infrastructure with the
  meat packing industry concentrated in
  Alberta

Question 9

three ways cow calf can sell there calves

Answer 9

• Direct sale to feedlot
• Auction market system
• Satellite/Internet sales

Question 10

factors leading to the cattle price right now

Answer 10

• Contraction of industry has led to fairly high
  prices for cow-calf industry for several years
• Drought of 2021-2023 has had a major impact
  on cow numbers
• Weaned calf prices have seen historic highs due
  to high demand and low volume
• Prices quoted in $/cwt live weight
• Feedlot profitability is tied to grain prices,
  Canadian dollar and cattle prices
  – This can be highly volatile with low margins

Question 11

packing plants

Answer 11

• The packing industry is extremely consolidated!
• There are only 4 major players in the packing
  industry in Canada
  – Cargill: High River (4500/day), Guelph (1500/day)
  – JBS (Brooks) (4000/day)
  – Several smaller packers (Harmony Beef: 700/day)