March 1, 2004

Canadian Cattle Herd Size Up 9%

The size of the Canadian cattle herd saw a 9% increase during 2003 to reach 14.66 million head as at January 1, 2004. Canadian herds saw increased numbers following the outbreak of mad cow disease in the country on May 20, 2003 and the subsequent bans on Canadian beef and cattle exports.

Imports of Canadian beef derived from cattle under 30 months resumed in the second half of 2003 to both the US and Mexico, however the ban on live cattle imports remains. The ban has resulted in a significant increase in the number of calves retained on cow-calf and backgrounding properties. The number of Canadian calves under one year increased 15% (663,000 head) to 4.98 million head, accounting for half of the 9% herd growth last year.

In addition, there was a 9% rise in heifers for beef cow replacement, some of which would have otherwise been destined for US feedlots. Canadian beef cows increased 6% (269,000 head) to 5.02 million head, reflecting the fall in cow slaughter and the decline in the value of cattle aged over 30 months.

The numbers of Canadian cattle over 30 months, which at present incur significant price discounts, is set to rise in 2004 while the US border remains closed to Canadian cattle.