Feed shortage to accelerate downsizing in Alberta's cattle industry

 

 

Cattle farmers in western Canadian province Alberta, are seeking government help to survive a severe feed shortage that could hasten the industry's downsizing.

 

Alberta's 5.9-million head of cattle account for 40% of the national herd, but has been shrinking for several years. The province's cattle industry has faced pressure from a strong Canadian dollar, weak prices, lingering export restrictions due to the 2003 mad cow disease case, and the American country-of-origin food labelling law which has reduced livestock exports to the US.

 

Severe drought in Alberta last summer also forced ranchers to feed cattle with hay that are typically saved for winter, leaving them to travel long distances now to buy feed.

 

For many producers, the feed shortage is coming on top of the financial challenges they have faced for the last seven years, and producers may be forced to sell their cows, said Rich Smith, general manager of Alberta Beef Producers.

 

Canada is the world's third largest beef exporter, according to the Canada Beef Export Federation.

 

Cattle groups have asked the Alberta and Canadian governments to give farmers non-repayable aid, likely a per-head payment, from a programme designed for disasters. The governments are assessing the request, with no decision likely for at least another month, Smith said.

 

Most Canadian ranchers time breeding so that calves are born between February and April. If many are forced to sell cows for slaughter before they give birth, the downsizing of the provincial herd will accelerate, Smith said.

 

The drought has not affected feedlots as severely as cow-calf producers because they don't depend on pastures, which the drought depleted.

 

The biggest industry concern is that prolonged downsizing could tighten supply for feedlots and major beef packers like Cargill and XL Foods. Cattle farmers are hoping for enough snow this winter to ease drought conditions in spring, Smith said.