August 24, 2006

 

Canadian cattle herd registers decline a year after US opens borders

 

 

Canada's cattle herd has shrunk almost 5 percent from last year's record levels, falling to 16.3 million head, resulting in the first decline in cattle numbers the country registered in seven years, according to Meat & Livestock Australia on Wednesday (Aug 23).

 

Canadian's cattle herd has been growing the past few years due to export bans limiting the outlets for Canadian beef.

 

The US border was reopened to live cattle less than 30 months of age in July last year, thus taking some pressure off rising cattle numbers.

 

Fewer heifers were retained in Canada to replace slaughtered cows, reflecting the abundance of beef cows in Canada and the fact that many heifers were sent to be finished in US feedlots.

 

The fall in beef cow replacement heifers accounted for about 17 percent of the total decline in cattle numbers.

 

Calves on farms were 5.4 percent lower than a year ago, accounting for almost 40 percent of the overall decline in cattle inventories.

 

The decline also highlights the effects of renewed trade with the US.

 

Even though international markets want only beef from cows 30 months or younger, the over 30 month herd has fallen 4.2 percent.

 

The fall on last year's level reflects the rise in weekly cow slaughter over the past 12 months - increasing by almost 50 percent on last year's levels.

 

The ban on Canadian beef and cattle over 30 months of age, is not expected to be lifted until next year. Until this time, beef in Canada will remain abundant.

  

Once the US opens its borders however, the influx of Canadian cow beef to the US is expected to depress beef prices in the US market.

 

The 8th case of mad cow disease in Canada, announced today, may result in an unexpected turn of events.