August 20, 2004

Cattle, Calf Inventories In Canada Soar

Canada's estimated total cattle and calf inventories as of July 1 climbed to a record high level in the wake of the ban on Canadian cattle because of the discovery of bovine spongiform encephalopathy, or mad-cow disease, according to figures released Thursday by Statistics Canada.
 
As of July 1, 2004, livestock producers had an estimated 16.750 million head of cattle on their farms compared with 15.738 million on July 1, 2003.
 
The government agency said in its survey of 18,000 farmers, beef and dairy producers had 1 million more head of cattle on their farm than they did on July 1, 2003. This 6.5% increase was due largely to the collapse of export markets for live cattle.
 
Survey results reflected the impact of a ban on Canadian beef following the disclosure of a single reported case of BSE on May 20, 2003, the agency said. The border remained closed to all Canadian beef exports until September 2003.
 
At that time, the U.S., followed by a number of other countries, agreed to allow imports of Canadian boneless beef from animals younger than 30 months under a permit process. Subsequently, on Dec. 23, 2003, a dairy cow in Washington state tested positive for BSE. The origin of this dairy cow was traced to northern Alberta.
 
Herd sizes rose in all provinces as exports virtually collapsed following the ban, Statistics Canada said. The herd surged 10.0% in Manitoba, the largest increase, while Saskatchewan's herd size went up 9.9%. Alberta's herd size rose a more modest 4.9%.
 
Farmers reported increased levels of cattle on all types of operations. Cow-calf producers reported 9.7 million animals, up 2.7% while the number of cattle on back-grounding operations jumped 24% to stand at 3.2 million. Meanwhile, the number of cattle on feeding operations, which totalled 1.5 million, increased 5.3%, the agency said.
 
Western Canadian farmers account for three-quarters of the national herd. Alberta alone represented 38.2% or 6.4 million animals as of July 1, 2004.
 
Canada's exports of cattle and beef meat to all countries virtually collapsed after than ban was imposed last May. The vast majority is destined for the U.S.
 
In 2002, Canada exported 1.7 million head of cattle, worth C$1.8 billion. With the border closed in May 2003, cattle exports plunged to 505,689 head, valued at $591 million, 30% of the previous year's level. Exports of live animals in 2004 are non-existent so far, as the border continues to be closed, the agency said.
 
Exports of beef have also dropped dramatically from the $2.1 billion worth registered in 2002. About 84% of Canada's beef exports are destined for American dinner plates.
 
Statistics Canada said although there is some monthly variation, exports of beef from Canada dropped to 789 tons in June 2003, staying extremely low until September. At that point, the U.S. started to allow some beef products into the country and exports climbed during the fall, almost reaching pre-BSE levels (about 40,000 metric tons per month). In January, monthly exports dipped before rising to close in on the pre-BSE levels.
 
In 2003, the value of beef exports fell 33% from 2002. For the first four months of 2004, beef exports were down 11.3% when compared to the value in 2003 prior to discovery of the BSE-infected animal.
 
     Canada: Cattle and calves on Farm. Source: Statistics Canada
                                                    Canada
                                          --Figures in 000 head
                                           2004-03
July 1, 2004 inventory                          PCT
- All Cattle and Calves         16,760.0     106.5
 Bulls, 1 year plus               286.2          104.6
 Beef Cows                         5,339.8       108.6
 Milk Cows                          1,081.1       102.5
 Heifers: dairy replacement  528.7          104.0
 Heifers: beef replacement   822.2          93.2
 Heifers: slaughter               1,274.6        113.1
 Steers, 1 year plus             1,732.4        107.1
 Calves, under 1 year          5,695.0        106.3
 
January 1, 2004 inventory                    PCT
- All Cattle and Calves         14,660.0     108.7
 Bulls, 1 year plus               270.5          112.8
 Beef Cows                        5,020.7        105.7
 Milk Cows                         1,077.1        101.1
 Heifers: dairy replacement 520.2           101.6
 Heifers: beef replacement  705.7           108.9
 Heifers: slaughter              862.5           110.6
 Steers, 1 year plus            1,228.4         104.3
 Calves, under 1 year         4,964.9         115.4
 
July 1, 2003 inventory                     2003-02
--All Cattle and Calves        15,738.2     102.0
 Bulls, 1 year plus               273.5         105.4
 Beef Cows                        4,916.1      102.0
 Milk Cows                         1,055.1      98.4
 Heifers: dairy replacement 508.2         99.1
 Heifers: beef replacement  881.8        106.5
 Heifers: slaughter              1,126.5     100.9
 Steers, 1 year plus            1,618.2     100.7
 Calves, under 1 year         5,358.8     102.7