The Beef Industry Flashcards

1
Q

What does meat consumption look like in Canada?

A
  • meat consumption in Canada is stable
  • beef & pork consumption have levelled off
  • poultry consumption continues to increase slightly
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2
Q

Why is poultry consumption increasing?

A
  • cheaper
  • perceived to be healthier
  • religious constraints
  • environmental concerns
  • faster to produce
  • quicker & easier to cook
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3
Q

What does Canada look like in terms of the world beef market?

A
  • Canada is a small player on the world stage in terms of beef production, however, Canada is a significant exporter of beef
  • we are very dependent on the US market (no quota)
  • Canada is a fairly significant exporter of grain-finished, high quality beef
  • exporting beef is an important aspect of this industry in Canada (we can’t eat all of the beef we produce!)
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4
Q

The main place we export beef to?

A

USA

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5
Q

How has the Canadian cow herd changed?

A
  • Canadian cow herd has been in a long term phase of contraction
  • “cattle cycle” was traditionally about 7-13 years in length (influenced by price, production, profit; biological lag from price signal due to reproduction constraints)
  • however, in the last 15 years, that cyclical pattern has been disrupted
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6
Q

Where does most of the beef production occur?

A

western canada (> 80% of cows in 3 prairie provinces)
- AB dominates in fed cattle production by feeding 2/3 of the cattle destined for slaughter
(would be ranked 4th for fed cattle production when compared to the states)

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7
Q

What are simentals used for?

A
  • originated in Switzerland
  • used to be used for both beef & milk
  • we use them just for beef
  • produce a lot of milk so the calf grows fast
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8
Q

How is the beef industry segmented?

A
  • cow calf industry which is predominated by small herds
  • intermediate stages of backgrounding & stocker operations
  • feedlot industry which is predominated by larger commercial operations (primarily in Southern AB)
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9
Q

What are the three phases of cattle production?

A
  • cow-calf, backgrounder/stocker, feedlot
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10
Q

What is cow-calf production?

A
  • basic production unit
  • often secondary or tertiary enterprise
  • utilizes land unsuited for other farming endeavors
  • usually, small numbers of animals per herd
  • In Western Canada, majority of calves are born from Jan 15-June 30
  • Southern USA: calving season is spread year round
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11
Q

What is the average size of a beef cow herd in Canada?

A

69 cows

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12
Q

When are calves sold?

A
  • most cow/calf operators sell calves at weaning
  • some producers will wean calves & sell them at a later date (backgrounding)
  • direct sale to feedlot
  • auction market system
  • satellite/internet sales
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13
Q

What is a backgrounder?

A
  • where we 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 (1kg/day)
  • medium-low energy rations (forage based)
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14
Q

what is a stocker?

A
  • stocker operation utilize forage & 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
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15
Q

Where do backgrounder/stocker operations take place?

A
  • limited infrastructure in most cases
  • programs may involve confinement in pens, grazing in pasture, or a combination
  • located where forage & grazing areas are in abundance
  • utilized primarily by feedlot operators &/or cattle feeders to provide live cattle to the beef processor on a year round basis
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16
Q

What is the feedlot?

A
  • fed in pens where harvested feed is brought to them
  • high energy diet (barley & barley silage, corn in other parts of the world)
  • cattle may be 12-24 months of age by the time of slaughter
  • farmer-feeder or corporate feedlots
  • custom feeding vs owning cattle
  • 70% of cattle fed in lots >1000 head
17
Q

What is custom feeding?

A

cow-calf producer that pays the feedlot to feed their cows for them but continues to own their own cattle

18
Q

What is the target slaughter weight for steers?

A

probably a little more than 1250-1550 lb

19
Q

Which provinces feed the most cows in canada?

A

AB & ON

20
Q

Why is the feeding industry concentrated in AB?

A
  • access to grain
  • access to weaned calves
  • dry semi-arid climate which is ideal for cattle production
  • ESTABLISHED INFRASTRUCTURE W/ MEAT PACKING INDUSTRY CONCENTRATED IN AB
21
Q

What are beef cow prices like?

A
  • contraction of the industry has led to fairly high prices for cow-calf industry for several years
  • droughts of 2021-2023 has had major impact on cow numbers
  • weaned calf prices have seen historic highs due to high demand & low volume
  • margins in feedlot sector have been v volatile in the past few years
  • feedlot profitability is tied to grain prices, the Canadian dollar, & cattle prices
22
Q

What is the meat packing industry like in Canada?

A
  • the packing industry is extremely consolidated
  • there are only 4 major players in the packing industry in Canada: Cargill: High River & Guelph, JBS: Brooks, AB; several smaller packers like Harmony Beef, AB
23
Q

How do cows move from birth to slaughter?

A
  • segmentation of the beef industry allows cattle to move from birth through slaughter through a variety of pathways
  • this is partly dependent on market conditions
  • backgrounding/stocking industries allow us to put cattle in a “temporary holding pattern” & slow down their growth
  • the livestock market is an essential part of the industry