September 20, 2013

Canadian cattle producers are expected to boost cattle herds by 2% by 2015, Brenna Grant, research analyst at CanFax says, after a report revealed the country marked its first on-year gain in eight years this July.

Canadian cattle herds which were decreasing since July 2005 and are starting to pick up as beef demand in other countries is prompting Canadian cattle producers to retain heifers and add numbers.

Demand for Canadian beef has been fueled primarily by growing demand for beef in China and Japan. Desired products include beef cuts that are highly regarded in foreign markets, but less desirable in North America.

In order to increase future beef exports, short-term numbers will fall lower as producers hold on to heifers and increase production. Higher beef exports may not be observed until two or three years from now. Canada has 13.5 million cattle on its ranches in July, a 0.1% increase on-year.

High feed costs, changing weather patterns and international markets going cold on Canadian beef forced 25% of Canadian cattle producers to exit the business from 2006 to 2011, after the industry peaked in July 2005. Now high beef prices and increasing demand abroad is inspiring cattle producers to add animals to herds that are 20% lower than they were eight years ago.