Drought and transport issues result in feed shortage for Canadian cattle farmers

Cattle farmers in Canada said they are running out of feed because of a severe drought last summer that damaged crops, as well as transportation issues, Reuters reported.

 

The drought, which badly affected Prairie pastures, had forced feedlots in Alberta to import more US corn. However, it is difficult and expensive to import US corn north of the border.

Alberta is the biggest cattle producing province in Canada.

 

The main corn shipper to western Canada, Canadian Pacific Railway Ltd, has not been able to keep up with rising demand through the frigid weather. COVID-19 vaccine mandates imposed on cross-border truckers has also affected the supply chain.

 

Brian Perillat, senior analyst at CanFax, said the feed shortages will lower profits for feedlots but not increase beef retail prices as feedlots are motivated to sell cattle quickly to meatpackers, increasing the supply of meat.

 

Owner of a 20,000-head feedlot near Warner, Alberta, Jacob Bueckert said he only has five days feed supply when he normally would have 14-30 days' worth. He said feedlot owners are surviving thanks to contributions from neighbours with enough feed, but it is difficult to find surplus grains. Feedlots are also fuller than normal because the drought has resulted in ranchers selling more cattle to feedlots last fall.

 

Janice Tranberg, chief executive of the Alberta Cattle Feeders' Association, said feedlots may ration feed and delay cattle from reaching slaughter weight, but this means additional expense. She said three-quarters of the province's feedlots face shortages.

 

Canada is the eight largest beef and veal exporter in the world.

 

US Department of Agriculture data showed US corn exports to Canada hit 1.085 million tonnes between September 1, 2021, to January 13, 2022. This was six times higher than the five-year average. A further 2.1 million tonnes have been sold but not yet exported.

 

Marie-Claude Bibeau, Canadian Agriculture Minister, sad she has spoken to Canadian Pacific about the feed shortage. Canadian Pacific said it is committed to supplying feed to feedlots but did not mention if they will take additional measures.

 

Canadian Pacific shipped 8,100 carloads of US corn into Alberta in 2021, 13 times higher than the previous year's numbers.

 

-      Reuters