The Beef Industry Flashcards
What does meat consumption look like in Canada?
- meat consumption in Canada is stable
- beef & pork consumption have levelled off
- poultry consumption continues to increase slightly
Why is poultry consumption increasing?
- cheaper
- perceived to be healthier
- religious constraints
- environmental concerns
- faster to produce
- quicker & easier to cook
What does Canada look like in terms of the world beef market?
- 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!)
The main place we export beef to?
USA
How has the Canadian cow herd changed?
- 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
Where does most of the beef production occur?
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)
What are simentals used for?
- 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
How is the beef industry segmented?
- 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)
What are the three phases of cattle production?
- cow-calf, backgrounder/stocker, feedlot
What is cow-calf production?
- 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
What is the average size of a beef cow herd in Canada?
69 cows
When are calves sold?
- 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
What is a backgrounder?
- 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)
what is a stocker?
- 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
Where do backgrounder/stocker operations take place?
- 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
What is the feedlot?
- 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
What is custom feeding?
cow-calf producer that pays the feedlot to feed their cows for them but continues to own their own cattle
What is the target slaughter weight for steers?
probably a little more than 1250-1550 lb
Which provinces feed the most cows in canada?
AB & ON
Why is the feeding industry concentrated in AB?
- 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
What are beef cow prices like?
- 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
What is the meat packing industry like in Canada?
- 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
How do cows move from birth to slaughter?
- 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
