June 15, 2010

Wet weather lower costs for Canadian cattle producers

Wet weather in Saskatchewan might be good news for cattle producers as moisture increases grass available for cattle grazing, significantly reducing feed costs.

This year's uncharacteristically cold and soggy-wet spring the prairies might cause distress for many Saskatchewanites, but all that moisture brings optimism to cattle producers, according to CanFax Market analyst Brian Perillat.

Speaking during the Saskatchewan Stock Growers Association convention and annual general meeting at the Heritage Inn on Monday (June 14), Perillat told the convention audience that cattle producers have had to deal with years of dry conditions, which have lowered feed supplies and increased hay costs.

"Hopefully, they can get a little ease from that," he said about the moisture increasing the amount of grass available for cattle, which should lower feed prices for producers.

With demand increasing for Canadian beef internationally, Perillat told convention-goers that spring indicates strength so far in the cattle market, despite a slow start to the year.