December 4, 2006

Canada's high feed costs may result in lower feeder cattle prices

Higher feed costs could result in lower income for cow-calf producers, said a director with the Ontario Cattlemen's Association, representing the Ontario Cattle Feeders.

According to Dale Pallister, a feedlot owner, thinner margins in finishing cattle would mean lower price in the sales barn when refilling the lot. Consumers would eventually feel the price of higher feed costs with nearly every product on the meat counter becoming more expensive, he elaborated.

If that doesn't happen, one would notice a decline in the number of cattle being raised in Canada.