26 ROLLER coaster markets
it is at 80 cents, it’s going to be detrimental.” The best way to visualize the cattle
market is a roller coaster with steadily increasing grades. “When I first started, probably
around 1990, the market changed maybe five or 10 cents in six months or a year and that was a big change,” he recalled, showing a sketch of the popular and potentially terrifying amusement park ride. “Now I’ve seen the market change $5 to $10 a hundredweight in a week to two weeks on live cattle.” Wilson doesn’t believe you can time the market. “It is pretty hard to time the
market; you just don’t know,” he said. “I think that is why risk management is preferred now.” But there are some patterns, Wilson
explains. “As a rule, in the springtime five to
six-weight calves are always the highest as that is when the grass guys are buying their grass cows,” Wilson said.
The lowest market is in November. “That is when all of the calves are coming to town and the lots are filling. There are some days when 100,000 calves are moving in Western Canada,” he said.
Best price
How can a producer prepare his herd to get the best price? “It is pretty hard for me to come and tell you what
works for your program. You have to research and understand that yourself,” said Wilson. “But when you
LIZ TWAN FILE PHOTO
go to the sale barn in the fall, ask the order buyer, ask the cattle feeder, ask the packer buyer, ask the consumer. There are reasons why some of the pricing is the way it is now. People are willing to pay more for a quality product.”
Genetics matter
Wilson believes genetics is the first step to building a productive and efficient herd. “What kind of cows do you have, what kind of
COUNTRY LIFE IN BC • FEBRUARY 2020 nfrom page 25
stock bulls are you buying,” he asked. “And is it what the buyer wants?” Wilson urged producers to follow up on past sales to see how their animals performed. A good herd health program and being able to show a vaccination history are also important, he said. “Feedlots recognize that well- vaccinated calves will have better heath and be less risk and they are willing to pay more for them,” he said. “And the cost is minimal for you.” Wilson supports age verification
and the Verified Beef Production programs both for domestic and export sales.
“Some of our government
programs are going to require us to be verified,” he says. “I think for the big premiums in the US going forward, cattle are going to have to be sourced and aged [from verified programs].” The direction of industry is led, in
part, by McDonald’s and the world’s other big buyers. “The consumer wants to pick up their package of meat, run it through the scanner and get a picture of the calf on green grass and the name of the ranch – the whole story,” he said.
“It doesn’t matter what size you are because we are going to have that traceability.” Sharing the story of how the animals were raised
is important come sale time, too. “Tell the buyer about your genetics, your sires and
cow herd; tell him about your herd health and your verification program,” urged Wilson. “You are asking him to take a chance on your calves. Give him the best cards that you can for him to gamble with.”
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