COUNTRY LIFE IN BC • FEBRUARY 2020


Raise your calves so buyers play


with a full deck Calves shouldn’t be a wild card when buyers want an ace


by TOM WALKER VERNON – Shawn Wilson


brought his experience as both a cattle buyer and seller, a cattle health and nutrition account manager and a third- generation Alberta rancher to the North Okanagan Livestock Association education seminar in Vernon on January 15. Wilson gave some


background on today’s market for cattle in Western Canada in the warm-up to a talk about getting top value for your calves. He outlined some of the factors that affect what a buyer will pay for cattle and what producers can do to get the best price. “As we go through this,


keep in mind that as you sell your calves, ask yourself the question why?” said Wilson. “Why does this calf bring more than that calf; why do that guy’s calves bring more than my calves?” Wilson added that the


buyer often comes with orders to buy in a specific price range. “The packer tells the


feedlot and the feedlot tells the buyer and it goes down the chain so, in the end, it’s what the packer can get for that product,” he explained. BC’s cow herd has expanded over the past four to five years, up from 185,000 head to around 208,000. Wilson added that the Alberta and Saskatchewan herds have shrunk a bit but the three western provinces still raise


78% of the 3.5 to 3.6 million beef cows in Canada. Canada has the capacity to


feed more animals, Wilson said. “What is really interesting to me is we have seen an increase in bunk capacity as expansion has taken place in Alberta,” he said. “Right now there is good demand for feeder cattle in western Canada.” Canadians are equal to the


US in production efficiency but raise only 10% of what the US does. The US is the top beef-producing nation in the world, claiming 20% of the world market, while Canada has just 2%. Mexico is becoming a major competitor globally, with about 11 million beef cows. “We should really pay attention to Mexico,” said Wilson. “They are fully integrated. They have been selling a lot initially as grind price, but they are slowly incorporating more and more cuts due to demand.” Canada is not building a lot of tonnage in its export markets, but the value is rising considerably, Wilson said, with China and Japan taking higher-end product. “We are selling more, and


we are selling for more,” he explained. “That is why we see Canadian packers willing to pay a bit more for cattle because they can sell them for a bit more money.” Americans take 80% of Canada’s product so it


Feb 29, 2020 : 25th Annual Pine Bu琀e Ranch Hereford Sale, Kamloops


March 28, 2020 : 47th Annual Dawson Creek All Breeds Bull Sale


April 11, 2020 : 45th Annual Vanderhoof All Breeds Bull Sale


April 16 & 17, 2020 : 83rd Annual Williams Lake Bull Show & Sale


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BCHA President John Lewis


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BCHA Secretary Janice Tapp


250-699-6466 THE BREED YOU CAN TRUST


25


BC's beef herd has grown to 208,000 head, but opportunities exist to grow that even more. LIZ TWAN FILE PHOTO


deserves attention in addition to new and emerging markets, Wilson added.


Feedlot priorities What dictates the price a


feedlot will pay? Wilson says that the operation’s input costs are the top consideration and then they will look at the genetics of the animals they are purchasing. Next is herd health and the vaccination history of the cattle they’re considering. The location, time and delivery are also factors. “Obviously, in the fall when


the weather is yucky and the passes are hard to get through, that puts a lot more risk on your fresh calves getting shipped over the mountains,” Wilson explained. “If they can’t get those calves direct in a timely fashion, they


are going to pull back price.” Currency exchange rates


also have an effect on Canadian cattle prices as Canadian prices are based on the Chicago market, which works in US dollars.


“It’s frustrating but [beef] is still a US-based price,” said Wilson. “If the dollar is at 70 cents [versus the US dollar] it makes us look pretty good; if


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Producer Check-off Supports Beef Industry Projects.


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British Columbia


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MFG A VARIETY OF ATTACHMENTS: BRUSH MULCHERS


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