Beef Business Noevmber Issue

Publication Mail Agreement #40011906

Working for ProducersWorking for ProducersA Saskatchewan Stock Growers Association Publication

Beef BusinessSaskatchewan’s largest circulated cattle industry magazine

May 2010

‘

Beef BusinessSaskatchewan’s largest circulated cattle industry magazine

September 2010

‘

Saskatchewan`s Premiere Cattle Industry Publication

November 2011

In This Issue:

EU Exports Thwarted - pg 19How Much Drought is Too Much? - pg 21The Lancet Liver Fluke - pg 29

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Contents

Industry News6 BIXS - The Ultimate Argument Settler

7 Unintended Consequences - The Negative Impacts of the US Horse Slaughter Ban

9 Tea Partiers - Confused About Agricultural Free Trade

10 Canadian Label Beef Sells in US Southeast

10 Marbling Matters - University of Colorado Study

11 U of S Expands Vaccine Research Capabilities

11 Texans Cull 500,000 Breeding Females

12 PFRA Pastures - Facing an Uncertain Future

12 Saskatoon Traceability Summit

Markets and Trade15 Saskatchewan Live Cattle Trade

15 AB-SK Fat Cattle Trade

15 AB Non-Fed Slaughter Prices

15 AB-SK Price Differences

16 SK Steer Prices

16 Regina Retail Meat Price Survey

18 Retail Beef Prices for Selected Cuts

19 Canadian Beef Exporters Shafted by EU Speculators

Analysis and Opinion20 Just How Good Is it? - Estimating Profitability for 2011

Feature21 How Much Drought is Too Much?

Science and Production26 Reminder - Required Documents at Sale Time

27 Where’s the Beef? Active Missing Livestock Files

29 Fluke of Nature - The Lancet Liver Fluke

30 SK Study Focuses on Forage

31 Hay Production Good to Excellent for 2011

Association News and Reports33 A Report from the SSGA President

35 A Report from the SSGA General Manager

Stewardship36 SK PCAP - Dealing With Oil and Gas Development on Native Prairie

38 Calendar of Events

38 Advertiser Index

Cover photo courtesy of Paula Larson, D’Arcy, SK

A Saskatchewan Stock Growers Association(SSGA) Publication

General Manager: Chad MacPhersonAdministrative Assistant: Wilma SwitzerBox 4752, Evraz Place, Regina, SK S4P 3Y4Tel: 306-757-8523 Fax: 306-569-8799email: [email protected] OR [email protected]: www.skstockgrowers.com

Editor: Jim WarrenTel: 306-569-9389email: [email protected]

Advertising Sales - Tracy CorneaTel: 306-693-9329 Fax: 306-692-4961email: [email protected]

Subscriptions - Wilma SwitzerBox 4752, Evraz Place, Regina, SK S4P 3Y4Tel: 306-757-8523 Fax: 306-569-8799email: [email protected]

Subscription Rate: 1 yr $26.50(GST included) Published 6 times per year

Design and Layout - Jackson Designs Candace Schwartz Tel: 306-772-0376email: [email protected]

Prairie Conservation Action Plan (PCAP)Manager: Michelle ClarkBox 4752, Evraz Place, Regina, SK S4P 3Y4Tel: 306-352-0472 Fax: 306-569-8799email: [email protected]

SSGA reserves the right to refuse advertising and to edit manuscripts. Contents of Beef Business may be reproduced with written premission obtained from the SSGA Editor or Manager and proper credit given to the Saskatchewan Stock Growers Association. Articles submitted may not be the opinion of the Association. SSGA assumes no responsibility for any actions or decisions taken by any reader from this publication based on any and all information provided.

Publications Mail Agreement #40011906Return undeliverable Canadian addresses

(covers only) to:Saskatchewan Stock Growers Association

Box 4752, Regina, SK S4P 3Y4

Beef Business

Chad MacPhersonHarold MartensLeanne Thompson

A Proud SaskatchewanTradition Since 1913

Did you know that the SSGA is Saskatchewan's oldest agricultural association?? Contributors

Les TiptonJim WarrenCam Wilk

This magazine is printed on paper that is comprised of

50% recycled paper and 25% post-consumer waste.It is acid-free, elemental chlorine-free and is FSC certified

Tle hc iy sc Me aR ge as za inel e

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6 | ©BEEF BUSINESS | www.skstockgrowers.com NOVEMBER 2011

Industry News

Have you ever wondered if the order buyer was pulling your leg when he said you took a discount because calves from your part of the country don’t perform on feed? Or maybe you’ve been told that big boned calves like yours just don’t make the grade at carcass cutout time. Or, maybe it’s been suggested your light framed calves simply can’t pack on the beef. Does it seem like some day down the road you’ll be taking a bath on your calves because, according to the buyers, feedlots never do well with calves marketed on Tuesdays?

If you answered yes to any of the above, the Canadian Cattlemen’s Association (CCA) has a deal for you. The Beef InfoXchange System (BIXS) allows cow-calf producers to virtually follow their calves from teat to table. BIXS employs the Canadian Cattle Identification Agency-approved Radio Frequency Identification (RFID) tags you already use to follow

BIXS – The Ultimate Argument Settler

calves from home, through slaughter and right up to carcass grading. At the end of that process, producers participating in BIXS will be provided with the feeding and carcass data collected for each of their calves. It could turn out that your buyer is a bald-faced liar. On the other hand, the results might suggest you need to take a hard look at your breeding program and management. Either way, if you participate in BIXS, there will be some hard numbers available to help settle the argument.

In announcing the October 13 launch of the nationwide BIXS cow-calf program, CCA President, Travis Toews said, “BIXS is the result of the CCA recognizing how an improved flow of information between producers and packers can enhance industry competitiveness.”

“In time,” said Toews, “ producers will benefit by understanding what

production enhancing decisions they can make to better meet market demands and packers will be able to source product that meets their specifications.”

Through BIXS, a range of data for each calf can be attached to the RFID tag number in the program’s database. Things like herd health management protocols, vaccinations and carcass information will be accessible.

BIXS is a voluntary program. In order to participate, producers have to keep records of their CCIA tag numbers and birthdates – either an actual birth date or calving start date. Other information such as vaccination records is optional.

The CCA invites producers to visit www.bixs.cattle.ca to enroll or to obtain additional information.

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Industry News

Over the past few years horse dealers in Saskatchewan have been contending with the fallout from the US ban on the slaughter of horses for the food industry. Roger Parsonage, a rancher, horse breeder and buyer from Maple Creek told Beef Business that the thousands of American horses coming across the border for processing in Canada have had a negative impact on horse values in western Canada.

“With supplies up, the two major horse processors have pretty much had things working in their favour, and horse prices aren’t what they used to be”, said Parsonage, “But it’s sort of a double-edged sword.”

“Horse production in western Canada went through a major decline a few years ago following the shutdown of most of the PMU [pregnant mare urine) operations in Saskatchewan and Manitoba,” explained Parsonage, “so, the fact there are US horses coming across the border at least ensures supplies remain strong enough to keep the plants operating.”

The PMU business produced up to 20,000 foals annually ensuring a steady supply of prospects for saddle horse fanciers and feeders who supplied the meat packers.

The two major players in the horse processing business in western Canada are Bouvry Exports, who have a horse-bison-beef plant at Fort McLeod, and Luc Van Damme who has horses custom processed at a plant in Lacombe. Van Damme formerly made use of the now-closed Natural Valley plant at Neudorf, SK. And prior to the US slaughter ban, he was processing horses in Illinois. Both Alberta plants are approved by the EU, allowing meat they process to be sold into Europe which continues to be the major market for Canadian product.

Unintended Consequences – The Negative Impacts of the US Horse Slaughter Ban

The US banThe de facto ban on horse slaughter in the US has shrunk their domestic market for unwanted horses and caused an increase in abandonment and neglect. Industry players like Roger Parsonage predicted this sort of outcome when the ban went into effect five years ago. Their suspicions were recently confirmed by a US Government Accountability Office study. The study found that despite the ban there are still roughly 140,000 US horses being slaughtered annually – it’s just that the processing now occurs in Canada and Mexico.

The US domestic horsemeat industry succumbed to a back door attack launched in 2006 when the federal government ceased to provide inspection at kill plants. That move effectively shut down major horse processing facilities in Texas, Illinois and Nebraska. Without federal inspection, the plants could not ship product to Europe. The direct loss in revenue from the US plant closures is estimated at $65 million annually.

However, that total does not account for unintended consequences. According to an October 23rd article appearing in The New York Times, closure of the kill plants has knocked the bottom out of the horse breeding business. Without the backstop effect of the floor price that kill plants provided, horses lost their value. Combine this with the effects of the recession and the result is increased neglect and abandonment of horses. Many people whose acreages and hobby farms have been foreclosed on (along with people who have lost their jobs) have difficulty effectively caring for their horses or paying for euthanasia and disposal. Some people simply turn horses, that they can’t care for, loose to fend for themselves. Again, these outcomes were things that ranch people and horse dealers across western North America had predicted before the ban went into effect.

According to the Times article, the animal rights groups that pushed for the ban refuse to admit that they have caused more horses more grief than had they let humane horse slaughter continue in the US. Faced with the evidence in the government report, they counter that the whole mess is due primarily to the recession and condemn bankrupt horse owners for not making a lifetime commitment to their horses. The fact that long trips to Canada or Mexico might be tougher on horses than a trip to a closer domestic plant doesn’t register with the hand-wringers in the animal rights movement, since they still contend horses shouldn’t be slaughtered anywhere ever.

The American Veterinary Medical Association is calling for an end to the ban and the legislatures of Nebraska, Arkansas, Montana and North Dakota have all moved to legalize humane horse slaughter within their state boundaries. However, without federal inspection the meat will likely not be eligible for export to major markets in Europe. One thing that is fairly certain is that should Congress come to its senses and rethink the ban the effects will be felt up here in Saskatchewan.

Other sources of Canadian market disruptionRoger Parsonage speculates that there has been an overall decline in horse prices in western Canada for two reasons. First the floor price that the canner horse market provided for the rest of the horse industry has declined due to US imports. Secondly, there appears to be a decline in interest in horses and horseback riding among the acreage set and young people.

Roger and this reporter pondered the reasons behind the drop in interest. We theorized that a couple of decades or so ago the market for saddle horses picked up as urbanites (mostly women), who grew up watching My Friend Flicka,

continued on pg. 8


Industry News

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reached middle age. When the kids finally left the nest, these people had the time and money to indulge their longtime desire to be involved with horses and live on an acreage. Most of those people already have all the horses they need, or have found that as they get older they’d rather be on a Caribbean cruise in January than looking after a horse.

And today, it seems kids are more interested in indoor activities like computer gaming than they are in doing anything that involves being outdoors – like working with horses.

These trends haven’t dampened Roger Parsonage’s optimism regarding the long-term viability of the specialized ranch horse market. In addition to their involvement in the meat business, the Parsonage family breeds, raises and trains purebred ranch horses. Roger reported that their last annual sale at Maple Creek brought the highest prices for ranch horses they have ever received.

“We’ve been lucky enough to be able to sell a lot of colts to local buyers,” said Parsonage, “This is a traditional ranching area where people continue to value horses for the work they do, and that market should be around as long as the ranchers are.”

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Industry News

After five years of controversy and debate, the US Congress approved free trade agreements with South Korea, Panama and Columbia on October 12. Free trade appears to be one area where the sharp Republican-Democrat divide in Congress of recent months doesn’t seem to apply. A few dozen Democrats and Republicans have disagreed with the majority of their caucuses which has both helped and hindered passage of the Bills. One of the barriers to passage has been the alignment of Tea Party Republicans with anti-free trade lobbies like R-CALF.

In his October 11 blog posting, the Colorado-based free market and free trade advocate, Steve Dittmer applauded the US Senate’s approval of a US-South

Tea Partiers – Confused About Agricultural Free Trade

Korea free trade deal that includes agricultural products. At the same time Dittmer worried that protectionist rumblings coming out of Congress could overshadow good news from Korea. Dittmer suggested that the buy American provisions of President Obama’s Jobs Bill and calls for China to revalue its currency could overshadow improvements like free trade deals with South Korea, Panama and Columbia.

Dittmer observed it would be ironic to get a free trade deal with Korea only to wind up in a trade war with China.

Dittmer also noted the impact of the anti-free trade positions taken by some Tea Party Republicans. He reported that a

group of some 20 freshmen Republicans associated with the Tea Party tide of 2010, have been withholding support for the trade agreements.

“As we’ve warned before, some of the new conservative Tea Party legislators oppose free trade,” said Dittmer, “the beef industry has some educational work to do with many conservative and Republican voters.”

As it turned out 21 House Republicans voted against the South Korean deal while 59 Democrats broke ranks to support it.

Steve Dittmer’s blog is available through [email protected]

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Cattle Industry Update Luncheon

The Saskatchewan Stock Growers Association and Saskatchewan Institute of Agrologists-Regina Branch invite you to attend the fourth annual beef cattle industry update.

Brian Perillat, Manager and Senior Analyst with Canfax-Canada’s Source for Cattle Market Information will provide a Cattle Market Outlook-2012.

Date: Thursday November 24th, 2011

Time: 11:45 a.m.

Location: Salon 3 Upper Queensbury Centre

Cost: $25 per person (lunch buffet featuring roast beef au jus)

RSVP: Please RSVP to Kylie McRae ([email protected]) or (306) 421-0863 by Monday, November 21, 2011


Industry News

Canadian Label Beef Sells in US SoutheastBeef, clearly and proudly identified as Canadian, has earned its place as a successful brand for Colorado Boxed Beef, a major US meat marketer. The company is currently marketing Canadian label product to 180 retail store customers across the US southeast. Consumer research and sales have demonstrated that meat lovers from Houston to Atlanta, and points in between, have positive views about Canada and Canadian Beef.

According to Canada Beef Inc., the Canadian beef industry’s market development agency, Colorado Boxed Beef’s success at marketing Canadian product has driven 8 million pounds of western Canadian beef into US retail meat cases in under two years.

The Auburndale, Florida-based company has been featuring Canadian labeled High River Angus since 2010, when it became a flagship client for Canada Beef Inc. and adopted the Canadian Beef Advantage message as a marketing strategy.

Canada Beef Inc. (CBI), was recently created through the merger of prominent

Canada’s beef industry has had a grading system, that takes marbling into account, for decades. And agencies like the Beef Information Centre have done all sorts of research that identifies the value of marbling in enhancing consumers’ beef eating experience. As a result, one might reasonably assume that the value of marbling is by now widely accepted collective wisdom within the industry. Apparently not, the debate over the value of marbling goes on and remains particularly topical in the US.

A recent University of Colorado (U of C) study has determined that marbling contributes significantly to flavour, tenderness and the overall beef eating experience. The study, conducted by U of C meat scientist Daryl Tatum, was inspired by concern that skeptics in the

Canadian beef industry organizations – the Beef Information Centre, and the Canadian Beef Export Federation. This past October the CBI hosted a trade mission that included representatives from Colorado Boxed Beef and meat retailers from the US southeast. The US delegates had the opportunity to visit one of western Canada’s major packing plants and a Western Feedlots operation.

According to CBI Chair, Brad Wildeman, the trade mission “reflected the collaborative partnerships that Canada Beef strives to achieve.”

“It also reinforced that representing and sustaining a Canadian Beef product in the US retail market is founded on education and a strong story that differentiates the product,” said Wildeman in the CBI news release that reported on the trade mission.

The US delegation included two of Colorado Boxed Beef’s retail sales prospects for High River Angus, Georgia-based J &J Foods and Wayfield Foods. After assessing the Canadian Beef Advantage in person, Darrell Wiley,

President of J&J Foods said, “The Canadian beef production systems are certainly impressive, and much more detailed than I would have thought before visiting.”

The success of High River Angus in the US retail market underlines comments made by Canadian Cattlemen’s Association President Travis Toews at the Saskatchewan Stock Growers Annual Convention this past June.

In describing the status of Canada’s WTO trade challenge over COOL, Toews said, “our trade challenge isn’t based on having our product labeled as Canadian.”

“We have no problem identifying our product as Canadian,” said Toews, “what concerns us is the disruption to processing and distribution that the current COOL rules create.”

Indeed, if the success that Colorado Boxed is experiencing in marketing High River Angus is an indication – the Canadian label itself can be a marketing advantage.

Marbling Matters – University of Colorado StudyUS meat industry continue to downplay the role played by marbling.

In an October 6 news release from the US offices of Certified Angus Beef, Tatum says, “Marbling has kind of gotten a bum rap from a lot of people saying it really doesn’t predict much, but across the full range it has predictive capabilities. When you measure it precisely it does a really good job.”

The U of C study employed panels of trained tasters who were presented with beef samples that had been measured for marbling content before cooking. Key to the methodology, was the new photographic system being employed in Cargill processing plants, that takes human inspector subjectivity out of the marbling measurement process.

The study found that as marbling increased, so did positive results for taste and tenderness. In fact, Tatum found that the positive relationship between taste, tenderness and marbling came out a lot stronger in the U of C study than it had in studies conducted a few decades ago. Tatum attributes this to the greater accuracy of the camera-read marbling measurements used today as opposed to the human inspector measurements used in the past.

“The relationships are stronger, and we think this is because the camera is much more consistent in calling marbling,” said Tatum, “If you improve the precision of the measurement the predictive capabilities go up. Marbling is a very, very good predictor of eating quality.”

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Industry News

U of S Expands Vaccine Research

CapabilitiesThe University of Saskatchewan’s (U of S) vaccine research capabilities will receive a massive shot in the arm, by way of a new $140 million International Vaccine Centre (InterVac), slated to open for business in 2012.

InterVac will be the only level three containment facility capable of conducting clinical vaccine trials on large animals in North America. It will be the largest facility of its kind in Canada and will be the only vaccine research centre in North America to house large animals.

According to the Canadian Cattlemens’ Association (CCA) September 16 news release, welcoming InterVac’s creation, the new centre will enhance Canada’s, “critical research capacity in the prevention and control of infectious disease that bridge animal and human health.”

InterVac will expand on the existing world-class vaccine research capabilities at the U of S where VIDO (the Veterinary Infectious Disease Organization) has established a track record as an innovator in the development of new vaccines for infections in cattle. Most notably, VIDO has developed vaccines to control E.coli. The new facility will operate under the auspices of VIDO.

So far 2011 has been the driest year on record in Texas since 1895. A Texas A&M University report estimates the drought will result in a 500,000 head decline in the state’s cow herd. That total is over and above the normal female culling rate. Ninety-eight percent of pastures in the state were rated in poor or very poor condition and prices for a 1,000 pound round hay bale were running from $70 - $100 as of August.

While intensive cow culling will boost trim and burger supplies in the short run, fewer cows, of course, means supplies will get tighter going forward.

Analysts with the Bloomberg news agency maintain that contraction of the US breeding herd has contributed to a 16%

Texans Cull 500,000 Breeding Females

increase in beef futures over the course of 2011 and predicted that beef futures could reach an all time record high of $1.36 for April 2012 contracts traded on the Chicago Mercantile Exchange.

Bloomberg reports that rising beef prices are now being passed on to consumers, noting that one major nation-wide steakhouse chain has bumped menu prices twice over the past year. Fast food outlets like Wendy’s are adding more chicken items to their menus because of tighter profit margins for beef products. Estimates are that US retail beef prices will increase by 8% over the coming year, as beef supplies shrink to 55.6 pounds per capita in the US – the lowest they have been since 1955.

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Federal Ag Minister Gerry Ritz has told Saskatchewan cattle industry officials that his department is considering getting out of the community pasture business. Apparently options under consideration include transferring the pastures to the provinces, to the municipalities, to their current patrons – or selling them.

Major changes to the system would have the greatest implications in Saskatchewan where the majority of PFRA pastures are located. There are 60 PFRA community pastures in Saskatchewan, 23 in Manitoba and three in Alberta.

In Saskatchewan, PFRA pastures are home to 65,000 cow-calf pairs annually. That

Comprehensive cattle traceability including the identification of production unit locations along with the recording of animal movements is no longer an “if”, it is now a “when” and “how.” That was a takeaway message from the industry roundtable on traceability held in Saskatoon August 31- September 2. That’s not to say all the details have been worked out. The 64 summit delegates, including 51 industry representatives and 13 government officials, recognized that there are still significant issues to work out over time.

According to the summary document produced by summit delegates, areas requiring additional effort include:

• developing a premises identification system that can be applied uniformly across the country;

• decisions about program cost-sharing need to be negotiated, (i.e. How much of system cost should be borne by the industry and how much should be considered a social or public cost?);

• development of a national animal movement recording document;

Industry News

PFRA Pastures – Facing an Uncertain Futureamounts to grazing for around 5% of the province’s beef cowherd. Currently, there are approximately 2,000 pasture patrons, down significantly from 4,000 just 15 years ago. Currently patrons pay fees of 45 cents per day for cows, 25 cents per day for calves and a $40 per cow breeding fee.

The annual budget for the program is around $20 million, 20% of which goes to repairs and maintenance. The PFRA pasture program employs approximately 300 people accounting for 194 full-time equivalent positions. Not counting original investments in land and infrastructure, some officials argue the pastures are a break-even proposition. Indeed, some of the original pastures set up in the 1930s

and 1940s involved the transfer of land from the municipalities and the province to the federal government at no cost.

Getting a read on the province’s position on the future of the pastures is something that will be determined following this fall’s provincial election. The provincial government currently manages 63 of its own community pastures. Some observers have suggested that the number of patrons in some provincial pastures has been declining. This may have played a role in the recent decision to sell the seven thousand acre Paddockwood pasture located north of Prince Albert.

• the development of a common sense approach to the implementation of regulations and;

• development of joint industry-government communications to create a united voice in support of Canada’s traceability system.

Some elements of system design were characterized as a done deal. For example, the summary document states, “Movement recording will take place at required sites and will be the responsibility of the owner of the cattle.”

In the post-BSE world it isn’t hard to find general agreement among cattle producers to the effect that traceability makes a certain amount of sense. Most now assume there are advantages in being able to identify and trace food products and animals. There is a virtual consensus to the effect that traceability can help keep borders open, enhance food safety and improve our ability combat disease outbreaks.

But, like with many other areas of policy development, the devil is often in the details. The implementation of mandatory tagging, for example, was not a rancour-

free process. Neither was the move to more expensive RFID tags. Federal Ag Minister Gerry Ritz’s call for mandatory age verification was not universally applauded. Premises identification (and the associated recording of animal movements) has proven to be one of the more daunting challenges facing traceability advocates who are hoping for widespread producer buy-in.

In response to industry concerns regarding the implementation of a national traceability system, Agriculture and AgriFood Canada set up the three-day Saskatoon summit. The event was billed as a value chain meeting, and included officials from several cattle industry organizations and businesses representing the cow-calf sector, feedlot operators, dealers and auctioneers, processors and other stakeholder agencies like the Canadian Cattle Identification Agency.

The Saskatoon summit demonstrates another consensus that has emerged. While traceability may be a good thing, effective implementation will require ongoing consultation and cooperation from all the stakeholder communities involved.

Saskatoon Traceability Summit

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“Weathering Change and Forecasting Opportunity”

Beef & Forage Symposium Tradeshow

Industry Meetings

January 18-20, 2012Saskatoon Inn

Saskatoon, Saskatchewan

Conference

SASKATCHEWAN’SP R E M I E RBEEF EVENT

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Markets and Trade

AB - SK Price Difference for 500 - 600 lb. Steer CalvesApr. 15 Apr. 21 Apr. 29 May. 6 May. 13 May. 27 June. 10 June. 30 Aug. 26 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 21

AB 149.82 149.5 148.57 150.2 151.21 149.9 145.73 150.75 153 151.8 150.25 150.92 152.6 154.88 160.27

SK 150.6 147.63 147.38 147 149.67 151.75 139.5 139 144.63 145.33 148.17 149.3 151.9 155.21 157.61

Steers $/100 wt.

300-400 400-500 500-600 600-700 700-800 800-900 900+

Sept. 9 160 145.33 136.3 132.8 124.64 117.88

Sept. 16 173.67 156.63 148.17 139.5 133.19 126.69 118.9

Sept. 23 173.5 160.38 149.3 140.07 132.14 124.31 117.5

Sept. 30 177.6 164.83 151.9 140.5 134.39 126.25 116.25

Oct. 7 180.5 169.17 154.88 143.06 133.6 124.45 115.56

Oct. 21 190.08 177.5 157.61 146.09 138.05 129.27 118.5

Saskatchewan Live Cattle Trade Sept. 9 - Oct. 21, 2011Heifers $/100 wt.

300-400 400-500 500-600 600-700 700-800 800+

Sept. 9 145.5 131.25 127.88 122.25 115.6

Sept. 16 147.38 141.58 129.8 125.5 122.06 116.08

Sept. 23 150.5 139.67 133 124.31 121.44 116.17

Sept. 30 151.42 144.83 133.75 127 122.38 118.29

Oct. 7 152.2 144.75 135 129.5 122.07 117.09

Oct. 21 164 156.38 139.95 131.58 123.45 120.05

AB/SK Fat Cattle Trade Sept 9 - Oct. 21, 2011$/100 wt averaged (AB values reported where SK figures unavailable)

Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 21

Steers-live 102.36 104 105.19 105.75 109.18 110.25

Steers Rail 169.6 170.38 171.5 174.75 183 183

Heifers-Live 102.36 103.45 104.26 105.42 109.18 110.37

Heifers-Rail 168.68 171 171 175.5 183.5 182.5

AB Non-Fed Slaughter Prices Sept. 9 - Oct. 21, 2011$/100 wt averaged

Cows Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 21

D1-Dd2 67.33 67.92 68.56 68.54 68.81 67.11

D3 62 61.75 62.43 61.17 61.5 60.07

Rail 131.5 132.5 132.5 132.5 133.5 130

Bulls Live 79.12 79.12 78.69 72.69 72.69 71.69


Markets and Trade

300-400 400-500 500-600 600-700 700-800 800-900

Dec.-09 115.48 110.13 116.67 94.92 91.12 88.81

Jan.-10 118.11 110.13 106.82 95.28 94.12 88.9

Feb.-10 118.93 117.79 113.12 101.65 97.41 93.46

Mar.-10 123.5 123.33 117.41 120.93 99.29 93.27

Apr.-10 121.26 122.36 118.51 109.89 101.92 92.07

May.-10 122.82 122.96 118.42 113.78 104.04 97.35

Jun.-10 123.5 126.5 120.11 114.4 97.97 97.97

July.-10 126.5 119.28 112.5 105.69 98.46

Aug.-10 125.03 121.25 113.04 110.22 104.79

Sep.-10 145.73 141.74 127.94 117.25 109.92 106.89

Oct.-10 142.85 133.99 125.46 117.25 114.71 106.89

Nov.-10 156.19 148.23 130.84 119.26 113.19 107.57

Dec.-10 151.03 146.94 131.6 122.1 116.05 113

Jan.-11 147.5 154.42 130.33 122 113.5 106

Feb.-11 162.1 162.92 146.17 130.63 123.07 117.38

Mar.-11 165 160.14 153.79 138.83 127.61 119.19

Apr.-11 157.5 150.83 150.6 139.5 128 118.5

May.-11 157.5 152.75 149.67 137.63 127.25 115.1

Jun.11 142.58 144.5 139.5 129.75 117.5 113.75

July.-11 154.5 148.25 139.38 131.08 124.75

Aug.-11 154.5 144.63 139.3 130.63 125.38

Sept. 11 175 160.46 149 139 133 125.47

Oct. 11 185 173 156 145 136 127

SK Steer prices Dec. 09 - Oct. 2011

Regina Retail Meat Price SurveyAug. 28 – Nov. 3, 2011 ($/lb.)

Cuts Extra Foods Safeway Sobeys Walmart

Aug Nov Aug Nov Aug Nov Aug Nov

Ground-regular $2.33 $3.03 $3.44 $3.34 $3.14 $2.89 $3.33 $3.63

Ground –lean $3.58 $3.62 $4.67 $3.64 $2.99 $3.44 $3.56 $3.63

Roast-cross rib $5.12 $5.35 * * $5.35 $5.25 $4.77 $4.87

Roast-rib * * * * * $8.63 * *

Roast-round $4.93 * * $5.69 $5.12 $4.79 * $4.37

Steak-tenderloin $15.55 * * * * $16.27 $13.97 *

Steak-ribeye * * $12.99 $12.99 $10.41 * $11.67 $11.67

Steak-sirloin * $6.48 * $8.74 * $7.44 $8.46 *

Steak-T-bone $9.97 $8.98 * * * $9.44 $9.87 *

Steak-round $5.84 $5.84 * $6.09 * $5.74 $5.35 $5.35

* Indicates the product was not in the display case on the day of the survey.

7090

110130150170190

$/10

0 w

t.

Steer Prices Dec. 2009 - Nov. 2011

300-400400-500500-600600-700700-800800-900

Dec 09

Feb 10

Apr 10

Jun 10

Aug 10

Oct 10

Dec 10

Feb 11Apr 1

1

Jun 11

Aug 11

Oct 11

7090

110130150170190

$/10

0 w

t.

300-400400-500500-600600-700700-800800-900

Steer Prices Dec. 2009 - Nov. 2011

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Markets and Trade

Lean grnd. Rib Roast Rib steak Sirloin stk Carcass

Dec.09 2.53 8.75 11.75 5.15 1.28

Feb.10 2.31 8.99 12.05 4.98 1.3

Apr.10 2.98 8.81 10.33 4.53 1.54

Jun.10 3.06 8.52 11.96 4.36 1.5

Aug.10 2.95 8.08 11.73 5.45 1.49

Oct.10 2.86 7.87 10.18 9.82 1.48

Dec.10 3.11 5.92 13.26 6.39 1.61

Feb.11 3.08 8.59 11.97 6.78 1.8

Apr.11 3.44 8.82 10.18 7.1 1.9

Jun.11 3.26 9.07 11.7 7.01 1.65

Aug.11 3.7 9.07 11.69 8.46 1.69

Nov.11 3.45 8.63 12.33 7.55 1.83

Retail Beef Prices for Selected Cuts Dec. 09 - Nov. 2011

0

2

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8

10

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14

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.09

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10

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.10

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10

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.10

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.10

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11

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.11

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11

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$/Lb

Retail and Carcass Prices Dec. 09 - Nov. 11

Lean grnd.

Rib Roast

Rib steak

Sirloin stk

Carcass

Dec 09

Feb 10

Apr 10

Jun 10

Aug 10

Oct 10

Dec 10

Feb 11Apr 1

1

Jun 11

Aug 11

Nov 11

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Markets and Trade

Canadian cattle producers who imagined they were following the rules of savvy marketing by producing hormone-free beef that was acceptable to paranoid consumers in the EU had an unwelcome surprise this fall. They discovered that despite the fact their beef met a laundry list of EU high-quality beef standards they still couldn’t sell it in Europe. This happened despite the fact the EU and Canada signed a trade deal in April 2011 that supposedly guaranteed European access to 2,100 tonnes of Canadian hormone- free beef.

The impact of lost access to the EU beef market fell hard on SunGold Specialty Meats of Innisfail, Alberta and the cattle producers who have been supplying it with organic and hormone-free beef. SunGold’s General Manager, Howard Oudman told reporters from Call of the Land on September 22 that the company had laid off 75 employees as a result of lost EU export sales.

According to Oudman, the Innisfail plant is one of a handful of Canadian slaughter plants licensed to ship beef into the EU. Until this fall things had been going reasonably well for the plant and producers.

“We were killing 180 head of cattle each week to fill our EU orders,” said Oudman, “and producers enjoyed a decent premium for providing animals that met EU guidelines.”

That all came to an end recently when SunGold’s European customers reported they could no longer afford to buy its beef products. They didn’t have the required import quota licenses. This meant they would have to buy quota from someone who had some to sell. The prices being asked for that quota made purchasing Canadian product unfeasible.

It turns out that the EU allows speculators to buy up Canadian import quota. It doesn’t matter whether those speculators

Canadian Beef Exporters Shafted by EU Speculators

are involved in the food industry or not. It only matters that they have the cash to buy quotas. Speculators can bid for import quotas under their own company names or purchase quotas previously awarded to legitimate meat industry businesses. It also appears possible for someone who simply wishes to keep Canadian beef out of Europe to buy import quotas. This could be done to sustain higher prices for their own beef, be it domestically produced EU beef or bargain basement beef purchased from exporters like Brazil. Regardless of the letter or intent of our EU trade deal, the real rules of the game allow speculators to win while Canadian producers and European consumers lose.

You read it here first. In the May 2011 edition of Beef Business we reported that the “trade deal” worked out with the EU in April 2011wasn’t much of a deal at all. It allowed the Europeans to keep artificial, unscientific trade barriers in place for hormone-supplemented beef in exchange for opening the door barely a crack to imports of Canadian hormone-free beef.

The Europeans were allowed to keep their hormone ban despite a WTO ruling that found there was no scientific basis for it. According to the WTO the ban constituted an unfair and illegal non-trade barrier. As such Canadian beef exporters are entitled to compensation. Canadian trade negotiators cut a deal that left the hormone ban in place in exchange for duty free access to 1,500 tonnes of hormone-free Canadian beef in 2011, rising to 3,200 tonnes by 2013. In compensation for the EU’s “concession” Canada agreed to the elimination of its duty on European beef.

As for any compensation due to Canadian beef producers – well apparently that is still on the table. But nobody in officialdom seems to be saying much about it. It likely won’t amount to much given that the Europeans can argue none of our beef was eligible for importation into the EU until recently due to BSE.

Ironically, it was an EU member country (UK) that sent us the BSE infected cattle that caused the problem in the first place. If it could be said that the quality of anyone’s beef has actually proven to be suspect in recent years, the Europeans have us beat hands down.

One wonders how big a burden that Canadian duty has been for European beef producers given that the continent isn’t self-sufficient in beef production. This past year EU-based importers applied for licenses to import 380,000 tonnes of beef, far exceeding the 21,200 tonnes of duty-free imports it has agreed to accept from Canada, the US and Australia combined.

The EU’s pledge to reduce barriers to Canadian beef just a smidgen wasn’t worth the paper it was printed on. There has been no indication from federal officials as to whether the brakes have been put on plans to eliminate our countervailing duties on EU beef. Our federal trade negotiators continue to salivate over the prospect of a comprehensive Canada-EU free trade deal. And one might reasonably speculate that their willingness to let the Europeans off the hook over their bogus hormone ban had a lot to do with smoothing the waters going into those broader trade negotiations.

In June of 2011, the Canadian Cattlemen’s Association (CCA) President Travis Toews told producers attending the Saskatchewan Stock Growers Annual Convention that a trade deal with the EU could be good for Canada’s cattle industry. However, Toews qualified that optimism, stressing how important it will be for cattle producers to ensure any trade deal doesn’t leave a sieve-full of loopholes in place that work to the detriment of our industry. Given recent events it would appear Toews’ words of caution weren’t misplaced.

As for SunGold Meats and its employees? Apparently, the plant’s status as western

continued on pg. 20


Canada’s only CFIA approved sheep and lamb slaughter facility will keep it operating in the wake of lost European beef sales. Howard Oudman said the plant will continue to process some specialty beef and bison. However, prior to losing its EU business that plant’s output was 50% lamb and 50% beef, lamb processing will now account for 80% of production. Oudman is optimistic about the future of western Canada’s lamb industry, noting that producers have been enjoying decent prices over the past couple of years. For those Alberta and Saskatchewan cattle producers who went the extra mile to accommodate European tastes, the news isn’t as good. The premiums they had counted on are gone, although luckily they currently have a healthy domestic beef market to fall back on.

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The Western Beef Development Centre’s (WBDC) 2010 Cost of Production Study produced the disappointing conclusion that on average the 22 production units participating lost $9.29 on each of their cows. They came up with the loss figure by calculating production costs and subtracting them from the value of a 542 pound calf marketed in the fall of 2010. Prices for 500-600 lb. calves averaged $1.28 per pound that fall. Interestingly, the WBDC’s 2010 study used a per pound price of $1.12 per pound 16 cents lower than an average based on CanFax numbers. So far this fall (from the beginning of September to the end of October 2011) 500-600 lb. calves have averaged approximately $1.51 and are still climbing.

If we plug this fall’s average price into the WBDC’s 2010 calculations we come up with per cow gross revenues of $818,

that’s $212 more revenue than the $606 the study said a cow earned last year. The result is a per cow profit of $202.71 for 2011.

Of course that $200 plus profit figure rests on a number of assumptions that don’t apply on many production units in the real world. First, it assumes that production costs have remained constant over the 2010 – 2011 period. We know that general inflation based on the consumer price index has been running at 2.0 – 3.0% in Saskatchewan over the past year. Fuel has gone up, but some things like forage may have gone down. Secondly, and more importantly, the WBDC study is based on an average production unit size of 282 cows.

Analysis and Opinion

Just How Good is It? - Estimating Profitability for 2011

That size of cowherd simply doesn’t reflect the scale of most production units in Saskatchewan. It’s far too high. Based on the 2006 census, out of 21,000 producers who reported having one or more cows, only 587 production units (3%) had more than 273 cows. No doubt average herd sizes have increased since 2006. There has been a lot of small producer exiting reported, as older mixed farmers with small cowherds retire. Nonetheless, it is likely that the cost of production estimates produced by the WBDC spread fixed costs out over way more cows than there are on the average size production unit.

This is not a criticism of the WBDC’s efforts. They are about the only industry organization in the province that has been making a consistent effort to understand profitability in the cow-calf sector. While some of the 22 production units involved in the 2010 study were significantly larger than average, the WBDC faces cost issues, and the need to find producer volunteers with adequate records that they are prepared to share. Another point to consider is that the average herd size is a moving target. Producers have obviously figured out that the size of cowherd required to break even keeps getting higher. Twenty-five years ago profitability might have required 100 cows. Today, the number may be in the 200-300 head range. We’ll only know for certain if we do the research.

Perhaps if anything, issues related to cost of production study methodology point to the need to devote considerably more resources to studying the economics of the cow-calf sector in Saskatchewan. We’ve seen tens of millions devoted to white lab coat research in the agriculture sector in recent years -- $140 million just recently for the U of S InterVac facility. That’s a good thing, but it shouldn’t translate into a critical lack of resources for social science research; especially the study of cow-calf sector economics.

Canadian Beef Exporterscont. from pg. 19

B

B


Feature

How Much Drought is too Much?The first answer that comes to mind might be that any drought is too much drought. However, if you define “too much drought” to mean the sort of brutally dry conditions that could knock a rancher or farmer out of business, the answer is “it depends.”

At least that’s one conclusion to be drawn from a series of recently completed research projects led by the Canadian Plains Research Centre (CPRC) at the University of Regina. These studies involved interviews with hundreds of agricultural producers conducted for the purpose of learning more about how they manage water and cope with drought. I was lucky enough to be involved as an interviewer and research analyst on these projects over the past three years.

If one assumes that the assessments of agricultural producers themselves count for something, the CPRC’s findings allow us to answer the question posed in the headline (How much drought is too much?) more precisely.

How Much Drought is Too Much?by Jim Warren

The research identified a virtual consensus among dryland grain farmers to the effect that – all other things remaining equal, two consecutive years of drought severe enough to produce crop failures would find most dryland grain farmers in serious trouble, and if a subsequent third year proved dry most would be out of business. As for ranchers, they perceive their drought tolerance threshold to be only slightly longer than dryland grain farmers viewed theirs. This assumes we can define severe drought for ranchers as a condition that depletes dugouts, streams and sloughs, causes forage crop failures and sees scant growth on pastures. Ranchers take comfort in the assumption that good management allows for enough carryover grass and winter feed to help sustain them through the first year of severe drought – but things get significantly uglier as dry conditions extend into years two and three.

That “other things being equal” qualification accommodates the “that depends” part of the answer to the

question, “How much drought is too much?” It allows us to assume that the two to three years of severe drought would occur under the existing regime of government-backed risk management programs. Producers did not hold out much hope that AgriStability, Crop Insurance and AgriRecovery would save them. As they are currently constituted and applied, these programs simply weren’t seen as great solutions to current income crises and single year droughts let alone catastrophic multi-year drought.

Similarly, the people interviewed assumed other risk management strategies currently in use, like off farm jobs and savings, would not be sufficient to sustain many operations through two to three consecutive years of severe drought. After all there are only so many off-farm jobs a family can do. And as one producer put it:

“There was a lot of old stale family money around during the drought years of the late 1980s. That’s what pulled a lot of guys

continued on pg. 23



Feature

through. There was an older generation who had the misguided idea that it was important to keep someone from the family farming or ranching. I don’t think there is very much of that old family money around anymore. Dealing with the next big drought will be different.”

A critical element of the methodology employed in the CPRC studies is that findings should be based on the perceptions of the interview respondents themselves. We weren’t looking for some sort of statistical yardstick or mathematical formula that would tell us how much drought the average producer can tolerate. Similarly, we weren’t all that interested in the official interpretations provided by government agencies and policy makers. Rather, we employed what is referred to as an ethnographic research methodology that focuses on the interpretations that people themselves assign to the challenges they face.

One of the great ironies underlined by the research is that in many important respects agricultural producers in the Palliser Triangle are extremely well adapted to drought, but at the same time remain highly vulnerable to a host of economic hazards. They have an amazing level of technical expertise. They are innovators and global leaders in the adoption of drought mitigating technologies. The adoption of min till methods (largely a Saskatchewan born technology) has done a lot to mitigate the impact of dry conditions for dryland farmers. For ranchers, an example along the same lines would be the adoption of new water management methods such as shallow bury pasture pipelines that allow for better grass management and greater drought resilience.

Academics are usually interested in seeing how field research reflects the theories that underpin their disciplines. Social scientists studying the ability of communities to withstand exposure to climate hazards rely on theories that purport to identify the principles of adaptive capacity. Adaptive capacity refers

to the levels of resilience that reside in a community. It is determined by things like the level of economic resources, infrastructure, and institutional supports available. It also depends on the quality of human capital available to a community.

It is in the area of human capital that producers in the Palliser Triangle rank off the charts when compared to other regions of the world. My personal assessment is that producers in this region are great adapters, in part, because they see themselves as highly adaptive people. They share a culture of resilience based on generations of shared experience in a region where it is difficult to survive in agriculture. Survival is difficult, at least in part, because of recurrent severe drought.

Sociologists refer to the sort of attitudes and thinking processes responsible for this type of self-referential adaptation as reflexivity. Producers in the region have adapted to their climate because they are constantly looking for ways to enhance their resilience. They are confident that by reflecting on what they have done in the past that did or didn’t work they can generate solutions. In essence their ability to adapt in the future is enhanced by successful adaptation in the past. Because they have experienced more frequent droughts than producers in other regions, they handle them better. It can be thought of as a positive feedback loop that makes use of negative as well as positive input.

One interview respondent from southwest

Saskatchewan summed up his views on drought by saying, “this is a dry country. If you can’t accept that, worrying about it isn’t going to help you.” When we drilled deeper into peoples attitudes we discovered that anxiety over drought has been diminished over the decades because producers see themselves as reasonably well adapted to it. One of the ranchers interviewed put it this way:

“I don’t think there is some sort of one size fits all formula for dealing with drought, everyone’s situation is different. And since you can’t prevent them -- there is not much you can do beyond employing good range and water management practices. I suppose the answer is you learn to live with the climate you’ve got. It doesn’t matter what you do, you cannot turn a dry country into a wet country, so you had better learn to live in a dry country. That’s why I’m proud of my parents and my grandparents and the management tradition they passed down…. If a guy really wanted to learn about drought management he could try farming or ranching in that Govenlock country [southwest corner of Saskatchewan] where it’s dry all the time. Even the wet years are dry. The time it rained 40 days and 40 nights, Govenlock got two tenths. There are places like that -- that Buffalo country in Alberta [north of Medicine Hat] is another one. It just doesn’t rain much. If they get a 25 bushel to the acre crop, it’s a bumper crop -- it would be considered a disaster somewhere else. If they’re still farming in those neighbourhoods, they’ve

How Much Drought ...cont. from pg. 21

continued on pg. 24


obviously managed to figure out a way to live with that climate. If they’ve got cows, they’ve figured out a way to raise them on sagebrush flats and gravel pans. They’ve got ways of doing things that have allowed them to survive”. The producers we interviewed frequently demonstrated a significant degree of alienation from government. The further away a particular government was headquartered, the higher the degree of alienation expressed. One of the speculations that the research prompts is the idea that disdain for government agencies and programs has served to enhance adaptive capacity.

The interviewees demonstrated a high degree of self-reliance and confidence – in effect reflexivity. For example, I interviewed two dryland grain farmers from different communities in southwest Saskatchewan who both responded to failed wells by purchasing old drilling rigs, fixing them up, and drilling their own wells. Subsequently, they each drilled around 100 wells for their neighbours. Similarly, when the CPR abandoned its rail line in the southwest corner of the

province, people from the surrounding communities pooled their resources and launched their own shortline railway. Reliance on senior governments to solve peoples’ problems is low, whereas self-reliance and community, or neighbour-to-neighbour, solidarity runs high.

A laundry list of economic hazards puts a strain on the sustainability of production units in the Palliser Triangle region. Low commodity prices, trade embargos, increasing input costs, or escalating interest rates, individually or in combination can be enough to cause a particular farm or ranch to fail. Pasting a layer of climate hazards onto those economic exposures adds significantly to risk. Drought, hail, early and late frosts and excessive moisture are all straws that could potentially break a production unit’s back. The CPRC studies focused on drought, given that it is the most common and costly severe climate hazard that producers and communities in the Palliser Triangle are exposed to.

The research produced a number of surprise findings. Surprising at least to interviewers like me. One surprise was that irrigation, generally thought to be the consummate adaptation to drought isn’t always what it’s cracked up to be.

While the irrigation systems located in southern Alberta or around Outlook, SK have generally withstood major drought (systems in Alberta were required to ration water in 2001), the systems located in the southwest corner of Saskatchewan are chronically dysfunctional to say the least. A combination of inadequate infrastructure and low snow packs in the Cypress Hills over recent decades has made irrigation more of a lottery than production method for many producers. Exacerbating problems with the infrastructure and the climate is the fact the PFRA has announced it intends to end its decades long management of the systems. Making matters even more frustrating for producers is the fact they have not been guaranteed any water allocations by the province once the PFRA leaves the scene.

A second surprise was the difference in attitude toward government between producers in Saskatchewan and those from the Alberta portion of the Palliser Triangle. Irrigators in Alberta are reasonably content with the shared funding and governance relationships they have with their provincial government. In Saskatchewan, on the other hand, irrigators in the Outlook area only wish they had the same sort of ongoing financial commitment to irrigation from their provincial government that Alberta producers enjoy. Ranchers operating in the Special Areas of Alberta (an area thought to be among the driest parts of the Palliser Triangle) are reasonably satisfied with the level of attention they receive from the provincial government agency that takes the place of municipal government n their region.

Ranchers in Alberta’s Special Areas obtain surface rights revenue from oil and gas wells on the Crown land they lease. The Saskatchewan government isn’t as generous. There is an incredibly stark contrast between the can do attitude of government in the Special Areas when it comes to supporting irrigation and the response of federal and provincial agencies to the plight of irrigators in southwest Saskatchewan. In both regions, irrigation is primarily

FeatureHow Much Drought...

cont. from pg. 23

Junction Reservoir Dam, Maple Creek


employed to supply winter feed for local ranchers.

In Alberta, irrigation infrastructure has been significantly improved over recent decades, enhancing the reliability of irrigation projects in the Special Areas. For example, when the Sheerness power plant (located south of Hanna) was built the provincial government and the Special Areas Administration ensured that the pipeline system carrying cooling water to the plant would also benefit the irrigation systems operated by local ranchers.

In Saskatchewan, a few major pieces of infrastructure like the Junction Reservoir Dam at Maple Creek and the dam on the Eastend Reservoir have recently been upgraded by the PFRA. Notwithstanding those improvements governments have essentially been running for cover, as opposed to being leaders in the effort to sustain agriculture in southwest Saskatchewan.

The producers we interviewed in the Special Areas acknowledged that the Special Areas Administration’s official mission – to contribute to the sustainability of the agricultural community, is more than just nice sounding rhetoric. They genuinely appreciate the proactive work the administration has undertaken to support agricultural. Whereas in southwest Saskatchewan farmers and ranchers are far more skeptical about the willingness of government to help them enhance the sustainability of their operations or assist them in times of crises like a multi-year drought.

Indeed, among the few examples of effective government responses to drought in southwest Saskatchewan in recent years, can be attributed to intense lobbying initiated by drought stricken farmers and ranchers in the Ponteix district. (Governments apparently weren’t capable of recognizing and responding to the plight of these producers without encouragement.) The Ponteix neighbourhood constituted a unique pocket of drought that persisted for over five years from 2004 to 2009. The community-based Southwest Drought

New CPRC Book On Adaptation

to Drought in the Palliser Triangle

The findings from a series of Canadian Plains Research Centre (CPRC) studies dealing with drought and water management on the prairies have been consolidated into a number of academic research reports and articles, culminating in a book scheduled for release in early 2012. The book, edited by Polo Diaz and Jim Warren, describes the status of drought resilience among ranchers and farmers operating in the Palliser Triangle. Much of the story is told by producers themselves.

Tentatively titled Defying Palliser: Agricultural Adaptation in the Driest Region of the Canadian Prairies, the book includes 29 in-depth interviews with agricultural producers from Saskatchewan and Alberta. The interviews contained in the book were selected from among hundreds conducted by the CPRC in the Palliser Triangle region between 2005 and 2010. The CPRC will be promoting sales for the book in Beef Business as soon as they roll off the press.

Committee is widely credited with being the catalyst for the popular Farm and Ranch Water Infrastructure Program (FRWIP) and the tax deferral schemes that allow drought stressed producers to forego taxes on the sale of cows culled due to drought until they have had the opportunity to restock their herds.

One gets the impression that a lot of the producer antipathy toward government in southwest Saskatchewan is rooted in the 16 years when producer problems were largely ignored by NDP administrations. It appears that despite its efforts to improve crop insurance, reduce the education portion of the property tax, and launching programs like FRWIP, the Saskatchewan Party government has not yet done enough to turn anti-government attitudes around. This seems strange given the fact Saskatchewan Party candidates win the legislative seats in the southwest by incredibly wide margins. Nonetheless, based on our interviews, they remain tarred by the anti-government brush. My sense is that it will take time, effort and money to undue the damage done to producer-government relations under the NDP. Similarly, the federal and provincial governments’ ham-handed mismanagement of irrigation in southwest Saskatchewan will require a concerted effort to overcome.

If there is a single or “most important” message to take way from the pile of drought adaptation research conducted by the CPRC, it would be that despite having incredibly high levels of adaptive capacity, many, if not most, agricultural production units in the Palliser Triangle (particularly those in southwest corner of Saskatchewan) would not survive three years of severe back-to-back drought, under existing risk management systems.

Jim Warren has been Editor of Beef Business for the past three years. He is currently a lecturer in sociology and strategic communications at the University of Regina and is in the process of completing his PhD thesis on water governance in Saskatchewan.

Feature

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Science and Production

Permanent identifiers such as livestock brands assist livestock inspectors and licensed livestock dealers to positively identify ownership of livestock. To ensure sales transactions proceed efficiently brand information is passed from livestock inspectors to the market office and then added to the sale invoices. This gives the buyer a complete description of the livestock purchased. The manifest number that the livestock were sold on is also added to the sale invoice. This number makes it possible for Livestock Inspection Services of the Saskatchewan Ministry of Agriculture to trace livestock should further information be required to settle a dispute. It also helps address health concerns in the event of a disease investigation.

In situations when a producer offers livestock for sale that carry a registered brand belonging to another person, the seller will be asked for proof of ownership for that animal. The seller will be expected to provide documentation that shows the seller is the actual owner of the livestock and entitled to the payment. When proof of purchase or ownership is not provided, the market may withhold your settlement. A number of other circumstances including legal disputes, martial disputes, estate discrepancies or creditor concerns may also result in the market decision to withhold settlement.

Withhold processes are very time consuming for the market, the producer and the Livestock Inspectors. Not having the proper documents increases the cost to everyone involved in the marketing of livestock.

Reminder - Required Documents at Sale TimeBy Les Tipton, Saskatoon District Manager and

Cam Wilk, Provincial Manager, Field Services, Livestock Branch, SK Ministry of Agriculture

One way to prevent this is to attach a copy of the bill of sale or invoice to the manifest when the livestock are delivered to market. This ensures the market and the Livestock Inspectors will receive the documentation at the time of inspection, thus proving ownership and preventing delays. It is the producer’s responsibility to prove ownership of the livestock. Branding with a registered brand is a simple and effective

management method that assists the efficient marketing of livestock.

FOR MORE INFORMATION

• phone your district Livestock Inspector; or

• phone the Brand Registrar, Livestock Branch, Saskatchewan Agriculture, (306) 787-4682; or

• phone the Agriculture Knowledge Centre, toll free, 1-866-457-2377.

Protect your investment.

For more information

about branding and livestock inspection,

contact:

Your brand is your animals’ return address.

Rusty Hawryluk, Regina, (306) 787-4682

Dave Augustine, Swift Current, (306) 778-8312 Bill McConwell, Moose Jaw, (306) 694-3709Ron Sabin, North Battleford, (306) 446-7404

Les Tipton, Saskatoon, (306) 933-7660 Robert Solomon, Yorkton, (306) 786-5712 Garth Woods, Moosomin, (306) 435-4582

Barry DeJaeger, Winnipeg, (204) 694-0830

Barry Belak, North Battleford, (306) 446-7571Jeff Eide, Saskatoon, (306) 933-6781

Brand Registrar

District Livestock Supervisors

Livestock Investigators

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AreaMissing from

Number of head

Animal description

Brand Description

Brand Location

RCMP subdivision

Livestock Branch contact

Date Reported

Maple Creek 4 2 red cows2 blk calves

r/rib Maple Creek662-5550

Maple Creek662-5454 October 13/11

Eastend 1 Black bull RRMaple Creek662-5550

Maple Creek662-5454 October 13/11

Saskatoon 6 Unspecified cows l/hip Warman

975-1670Saskatoon933-7660 October 11/11

Climax 4 Red and white heifers LH Shaunavon

297-5550Swift Current778-8312 August 29/11

Milestone 6

5 RWF steers 1 red heifer (purebred) Tattoos n/a Milestone

436-6250Moose Jaw694-3709 Sept 29/11

Moosomin 6Unspecified steers LH Moosomin

435-3361Moosomin435-4524 October 4/11

Davidson 2Brown cowBrown HFR LH Craik

734-5200Moose Jaw694-3709 October 24/11

Springside 1 Brown HFR RH Yorkton 786-4500

Yorkton786-5712 October 07/11

Saltcoats 2 BLK HFR LH Yorkton 786-4500

Yorkton 786-5712 October 24/11

Information provided by the Livestock Branch pf the Saskatchewan Ministry of Agriculture

Where’s the Beef? Active missing livestock files Sept /October 2011


Peak Dot Ranch Ltd.FALL Bull and Female Sale

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Dec. 7 ,2011 Swift Current, SK Selling 400 Commercial Black Angus Heifers bred to Peak Dot calving-ease bulls.

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Lady of Peak Dot 562YSAV Iron Mountain 8066 Daughter

lady of Peak Dot 986USAV 004 Predominant 4438 Daughter

Mia of Peak Dot 555Y

Lady of Peak Dot 546YSAV Iron Mountain 8066 Daughter

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Erica of Peak Dot 478USAV 004 Predominant 4438 Daughter



For those in doubt as to whether truth is really stranger than science fiction, the following research review produced by the Beef Cattle Research Centre (BCRC) might just change your mind. A team led by Dr. Cam Goater, from the University of Lethbridge, conducted a study of the Lancet liver fluke, an organism that can infect cattle and inhabits the Cypress Hills. The BCRC published a review of their findings in September 2011.The life cycle of this little pest is truly amazing. We have reproduced the report in full and encourage readers not to get turned off by the article’s formal title: Transmission biology and zoonotic potential of an emerging parasite in beef cattle. The report is a much better read than its name suggests.

BackgroundThe Lancet liver fluke (Dicrocoelium dendriticum) entered eastern North America in the 1950s. It spread westward and arrived in Cypress Hills Park on the Alberta/Saskatchewan border some time after 1985.

The fluke’s lifecycle begins when fluke eggs are eaten by a snail. Fluke larvae migrate throughout the snail’s digestive and respiratory systems and are eventually coughed up in a slime ball. Ants use these slime balls as a moisture source and consequently eat the cysts. Most of the larvae mature in the ant’s abdomen, but others commandeer a cluster of nerves that controls the ant’s movements. During warm weather, the ant behaves normally. When temperatures cool in the evening, the flukes hijack the ant, instruct it to climb to the top of tall grass, and force its jaws to lock onto the grass until temperatures rise again. Cattle tend to graze mostly during the cooler early evening and morning hours (especially in warm weather), so this increases the chance that the infected ants will be eaten by cattle. Once inside the cow’s intestine, the flukes work their way to the bile duct

Fluke of Nature Meet the Lancet Liver Fluke

and lay eggs. Fluke eggs are shed in the manure, and the cycle begins again.

Fluke infections are rarely fatal in cattle. Economic losses from fluke infections typically result from liver condemnations at the packing plant, although heavily infected animals can become anemic, emaciated and predisposed to other infections. Extra-label doses of albendazole or fenbendazole in fall and spring may help treat infections, but cattle do not appear to develop immunity, so annual treatment is necessary.

A better understanding of the factors influencing the risk of fluke infection transmission could help prevent further spread of this organism to cattle and wildlife.

Objectives1. Learn how vegetation, moisture and season affect liver fluke transmission between ants and cattle. 2. Evaluate the prevalence of the Lancet liver fluke in elk, deer and cattle.3. Develop a diagnostic test to identify infected cattle based on blood and fecal tests.

What they didFactors affecting liver fluke transmission between ants and animals: Monthly ant samples were collected from 100 sites ranging from wet to dry, and dominated by aspen, pine or grassland. Numbers of infected ants were counted in each sample.

Liver fluke prevalence: Deer, elk and cattle livers were obtained from hunters and abattoirs, and manure samples were collected from grazing areas. Numbers of infected samples, numbers of flukes per sample and relative population sizes were used to estimate how cattle, deer and elk contribute to fluke spread.

Diagnostic test to identify infected cattle: Infected cattle liver samples from the prevalence study were used to develop an ELISA test to identify fluke antibodies in cattle. The test was then used on 500 cattle from outside the Cypress Hills region.

What they learnedFactors affecting liver fluke transmission: Fluke-infected ants were found only in aspen-dominated sites bordering on water, particularly in mid-June through August. No infected ants were found on fescue grassland or pine or spruce dominated sites.

Liver fluke prevalence was difficult to determine conclusively: Liver samples collected from 36 deer, 18 cattle and 70 elk suggested that 47% of deer, 83% of cattle and 68% of elk carried flukes. Manure samples from 68 deer, 59 cattle and 43 elk indicated that 62% of deer, 44% of cattle and 14% of elk were shedding fluke eggs.

A few factors, besides the small sample sizes, make it difficult to estimate how each animal species contributes to overall fluke transmission. Comparing prevalence rates from liver samples is challenging because hunters may select deer and elk based on different age, health and body condition preferences than are involved in beef cattle culling decisions. It is also difficult to get an accurate fluke egg count in manure samples.

Finally, elk, deer and cattle have different preferences for grazing aspen, pine and open rangeland, and infected manure deposited in drier pine, spruce or fescue dominated areas is less likely to be consumed by snails than manure deposited in shady, moist areas preferred by snails. However, there are more cattle (4,000) than mule deer (316), whitetail deer (346) or elk (657) in the park, so cattle

continued on pg. 30


and grazing management likely play a key role in controlling the spread of this liver fluke.

The ELISA blood test is highly effective at detecting the liver fluke in cattle: The test correctly identified all 15 cattle with infected livers in the prevalence study. Of the 500 blood samples collected from throughout western Canada outside Cypress Hills Provincial Park, 499 were negative. The one “infected” sample was believed to be a false positive, since it originated from an extremely arid area that is a hostile habitat for snails.

What it meansThe Cypress Hills appears to be the only location in western Canada where the Lancet liver fluke is found. Cattle and other grazing ruminants are most likely to become infected by liver flukes in mid-June through August, when grazing moist, shady areas. Cattle are not exposed to infection on drier grasslands or pine or spruce-dominated sites. Fencing cattle out of riparian areas could help to minimize the further spread of the Lancet liver fluke.

The Beef Cattle Research Council (BCRC), a division of the Canadian Cattlemen’s Association, sponsors research and technology development and adoption in support of the vision of the Canadian beef industry to have high quality Canadian beef products recognized as the most outstanding by Canadian and world customers.

For more information visit: www.cattle.ca/researchor contact: Canadian Cattlemen’s Association#310, 6715 - 8th St. NE, Calgary, AB T2E 7H7 Tel: (403) 275-8558 Fax: (403) 274-5686


According to a recent University of Saskatchewan (U of S) led report, western Canada’s cow-calf industry stands to benefit from an increased focus on the economics of feed and forage management strategies. The report describes a lack of economic analysis that takes into account the various unit sizes and production models employed by producers across the prairies. The report’s writers, called for more research on the economics of various feed and forage management strategies. They also recommended greater standardization of the various economic management tools available to cow-calf producers.

Stressing the importance of feed and forage economics to the cattle industry, the report states, “winter feed and forage grazing costs account for 60-65 percent of the total costs associated with cow-calf production in western Canada.”

The report underlines the economic benefits of enhanced forage and feed management by pointing out that if cow-calf producers across Canada extended their grazing seasons by just one day each, it would save the national beef industry $3.8 million. Similarly, if stored forage were fed for just one additional day of backgrounding prior to grain finishing, the industry would save $3.1 million.

The report, entitled, An Economic Analysis of Feed Costs Within the Cow-Calf Sector, was drafted by the Saskatchewan Forage Council on behalf of the Western Canadian Feed Innovation Network at the U of S. The report’s recommendations include:

• a more accurate and standardized economic analysis of research projects including year-round feeding and grazing system costs within western Canada’s cow-calf sector must be undertaken;

• the development of standardized economic analysis tools for individual cow-calf businesses that allow for consistent calculation of production costs across western Canada;

• targeting increased research dollars towards further in-depth assessments of innovative feeds, forages, feeding and grazing management systems, requiring a specific focus on thorough economic analysis;

• focused allocation of resources for the recruitment and education of future professionals in the field of applied forage and beef economics; and

• the creation of a Saskatchewan Forage and Livestock Roundtable to facilitate system-wide discussion with a focus on economic analysis, direct future research priorities, and foster stakeholder partnerships.

The report’s focus on the importance of forage economics is timely given concerns being raised across North America about the potential loss of grass and forage production given rising grain prices. In addition to its value as a conservation measure on marginal lands, forage production is thought to offer additional benefits such as reduced energy, chemical and machinery costs. Studies like this underscore the value of gaining greater understanding of the benefits of enhancing forage management.

To read the study or learn more about the Western Canadian Feed Innovation Network go towww.wcfin.ca

SK Study Focuses on ForageFluke of Naturecont. from pg. 29

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In its final edition for the 2011 production season the Saskatchewan Forage Council’s Hay and Pasture Report stated “reports from around the province seem to indicate that hay yields were good to excellent in most regions with quality being good as well.”

The provincial average yield for dryland hay in 2011 was 1.9 tons per acre. The northeast experienced highest average yields at 2.1 tons per acre. The northwest faired the poorest with average yields of 1.4 tons per acre. Greenfeed production averaged 2.2 tons per acre across the province. The northeast had the best yield

Regional hay land and pasture moisture conditions Oct. 2011Region % surplus % adequate % short % very short

Southeast 3.0 64.0 30.0 3.0Southwest 36.0 49.0 15.0East central 65.0 27.0 7.0West central 29.0 58.0 13.0Northeast 44.0 44.0 12.0Northwest 41 40 19.0

Saskatchewan Forage Prices Oct 2011

High Low Weighted Average

Alfalfa $90 $41 $57Brome-Alfalfa $67 $40 $54Straw $24 $17 $21Other $63 $50 $51

Hay Production Good to Excellent for 2011average at 3.4 tons per acre. The lowest average greenfeed yields of 1.8 tons per acre were in the northwest.

Anecdotal reports coming into the SSGA office this fall described the rare circumstance whereby producers in the province’s south have been selling surplus hay into the US. Buyers and truckers have been assembling loads bound for the parched regions of Texas and Oklahoma. Unfortunately, those reports include stories of producers who sent hay south only to find that the cheques they received didn’t clear the bank.

The regional crop conditions in the forage Council’s report indicate that despite the cool wet weather and flooded fields experienced this spring many parts of the province are now short on soil moisture.

The table provided below summaries the moisture conditions on hay land and pasture land reported by the Forage Council.

The Forage Council Report also provides a summary of forage feed prices adapted from the Saskatchewan Ministry of Agriculture’s feed listing service.

To see the Forage Council’s full final report for 2011 go to www.saskforage.ca.

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s


Association News and Reports

A Report From Harold MartensPresident, Saskatchewan Stock Growers Association

The people who run for the position of a Member of the Provincial Legislature give a significant amount of their time, money and effort to represent us. I want to say thank you to all who ran and I want you to know that you have contributed to the essence of democracy. I offer you my sincere congratulations to all those who were successful in winning your seats in the Legislature. I have had the privilege of being an MLA for 13 years and know that it takes hard work, commitment and dedication.

The Premier will be selecting the new cabinet and so we will be looking forward to that. There will be some who will be back as ministers and there will likely be some new ones. We will need to meet with the new cabinet and review some of the issues as we begin to work with them over the next 4 years.

There are some unfinished projects that we will be bringing to their attention and I want to list some of them here:

1. Growing Forward 2 will be a high priority for the next year and the SSGA will be presenting them with the cattle industry perspective.

2. CCIA and traceability will be high on the agenda.

3. A patron’s assurance fund will provide some security for those who sell their

cattle to bonded livestock dealers who do not pay for the cattle they have purchased.

4. The livestock dealers need to have some protection from those who have been paid for their cattle but do not pay their creditors.

5. Crown land sales will be studied and we look forward to setting up the conservation easements for the purpose of moving as much land into the private sector as is possible.

6. Livestock transportation is a vital part of the industry and there are issues we need to be involved with at SGI and the Highway Traffic Board.

7. Cattle price insurance will be worked on with the Provincial and Federal Governments.

8. Livestock inspection is not the same in all provinces and we will be initiating this discussion with the provincial and federal governments.

9. Research in the livestock sector has been reduced and with the provincial government looking into where we should be going with that, we will be looking to better coordinate the types of research and what the direction that research should go.

10. Surface rights are an issue for ranchers and landowners and we need to reset the compensation on the payments made on lease land for surface rights.

11. Animal health is a priority for cattlemen and helping the industry focus on doing what is best for the animals that they own will be a high priority.

In September, Dr. Jude Capper, a Washington State University animal scientist, told the Certified Angus Beef Annual Conference that “In every part of the world we’re going to face the issue of feeding more people on less land with fewer resources.” She went on to add that

“In 1977 it took 5 animals to produce what 4 animals produce today, if we can have our animals on the planet for fewer days before they’re harvested, in total we use less energy, less land and less water per unit of beef.”

The cattle industry has demonstrated its ability to produce beef efficiently. Cattle that grow faster and weigh more cut down on the environmental foot print so she says “that comparing conventional production to grass fed cattle the average days from birth to harvest are increased by 226 days and carcass weight drops by 185 lbs. Efficiency gains from 1977 to 2010 amount to a 19% reduction in feed use, a 12% decrease in water needed and a 33% drop in land required per pound of beef.” Her conclusion was that “to convert to a grass-fed system we’d need to double the number of cows in the U.S. just to maintain the supply”

Knowing what the cattle industry has accomplished we still have a room to improve. The average cowherd will produce at 86% and moving that percentage up will easily generate more income and productivity. You can probably think of ways to do that. There isn’t a better time than now to look at how to improve what your herd does and your capacity to improve the margins that are there. The cattle markets have responded to some very significant highs. Can we do more? “YES”. I am proud of the cattle sector and what they have accomplished and I think we need to brag a little about it.

The Saskatchewan Stock Growers have an aggressive agenda to work on. Expanding our role to include all of the needs of the cattle industry is our Board’s priority. This fall and through the winter we will be holding zone meetings and we are looking forward to meeting you and your neighbours.

Have a good winter and may your calves sell well and may every cow have a live calf. B


What’s a VolunSteer?An SSGA member who contributes to our new fundraising campaign by donating the proceeds of the sale of an animal. Why become a VolunSteer?To help the SSGA increase our financial resources to better serve our members as an advocate to protect, promote and educate on behalf of our industry. Participating in the SSGA’s VolunSteer program is a hassle-free way to invest in the future of the beef industry - the SSGA is inexpensive insurance for your business. What’s in it for you?Help the SSGA increase our financial resources to better serve our members as an advocate for your industry. • Receive a tax receipt for your donation. • Free one-year SSGA membership ($105 value).* • VolunSteers will also be recognized in Beef Business magazine and at the SSGA Annual Meeting.*

*Contribution must be at least $500 value to receive these benefits.

Security knowing that the SSGA is watching out for your business.S

G Guiding the livestock industry in the past, present and future.

A Advocating for an economically viable and independent cattle industry.

Supporting primary producers for nearly 100 years.S

WantedSaskatchewan Stock Growers Association Box 4752, Regina, SK S4P 3Y4 P: 306.757.8523 F: 306.569.8799 E: [email protected]

Help the SSGA fight for your industry!For more information call: (306) 757 - 8523

VolunStEERS


Association News and Reports

A Report From Chad MacPhersonGeneral Manager, Saskatchewan Stock Growers Association

The fall sale run has started for another year and many classes of cattle are at or near all time record high prices. The return of profitability to our industry has been long overdue and producers who have persevered since 2003 are being rewarded accordingly. Many producers will be using this year’s profit to service debt loads, replace eroded equity and reinvest in their business. There continues to be extreme volatility in the stock markets due to economic uncertainty in European countries such as Greece. However the long-term outlook continues to look quite bright for the future of the Canadian beef industry. The second annual VolunSteer fundraising campaign is currently underway. The premise behind this initiative is for producers to donate the proceeds from the sale of an animal to the SSGA and in return you will receive a tax receipt for your donation, a one-year SSGA membership and recognition in Beef Business magazine, at the SSGA AGM and on www.skstockgrowers.com. For more information contact (306) 757-8523.2012 Slippery Moon calendars and

2012 Hoofprints & Heartbeats journals are now available. Call the SSGA office at 306-757-8523 to purchase them. They make great Christmas gifts. Five dollars from the sale of every calendar and journal goes towards the bottom-line of the SSGA.

Mark your calendar for the upcoming Commercial Cattle Mixer to be held after the Canadian Western Agribition (CWA) Commercial Cattle Show on Friday November 25, 2011. This year’s Commercial Cattle Beef on a Bun meal is sponsored by the Canadian Angus Association and Young’s Equipment Inc. and will be held in the Stockmen’s Arena.

On Saturday November 26, 2011 during the CWA Commercial Cattle Sale, John

Brown Farms is selling a package of ten black bred heifers. John Brown Farms has agreed to donate a quarter of the total sale proceeds from the pen of heifers to the SSGA. On behalf of the SSGA membership I would like to thank John Brown Farms for their generosity and encourage all other producers to bid liberally.

I encourage everyone to attend the third annual Saskatchewan Beef Industry Conference (SBIC) to be held January 18-20, 2012 in Saskatoon. For more information visit the SBIC website www.saskbeefconference.com.

Until next time I wish everyone a Merry Christmas and a Happy New Year.

Hoofprints & Heartbeats 2012 Planner and Weekly Journaland

The Slippery Moon 2012 Ranch Calendaravailable through the SSGA 306-757-8523

l Merry Christmas and Happy New Year l

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Stewardship

According to the Saskatchewan Ministry of Energy and Resources, in June of 2010 there were 27,000 producing oil wells and 20,000 producing gas wells operating in Saskatchewan. There are also countless abandoned and inactive sites in various stages of restoration along with miles and miles of pipelines located throughout the province. With this amount of activity, it is easy to see how landowners and oil and gas companies are coming in regular contact. Landowners and lessees who are new to this relationship often have questions about the process as well as concerns regarding access and use of their land or lease which can be quite sensitive in the case of native prairie acres.

Some of the concerns specific to oil and gas development on native prairie acres include:Conservation of Saskatchewan’s remaining rangelands;Minimal environmental (soil, vegetation and wildlife) disturbance;Restoration of the land to pre-development conditions;Sourcing and use of appropriate native plant species when revegetating a site.

Dealing With Oil and Gas Development on Native PrairieSubmitted by Leanne Thompson for SK PCAP

Landowner/lessees should educate themselves about their rights so they are aware of what to include in a contract with an energy company and what is considered fair compensation for various activities. These rights will be different based on whether land is owned (deeded) or leased (Crown land).

For deeded land, the process for exploration and drilling usually involves a land agent representing an energy company approaching the landowner. In this case a contract is made between the landowner and the energy company. As a landowner, you should be well aware of all information in the contract and ensure that all of your concerns (both short and long-term) are addressed before signing any documents.

For lease land, the process is different as the landowner (i.e. Crown) will be the main contact for energy companies looking to explore and drill. However, lessees must be consulted regarding land access and compensation is provided. In Saskatchewan, Crown land is administered by Saskatchewan’s Ministry of Agriculture – Lands Branch who have a specific

set of rules and regulations regarding developments on native prairie. Ministry staff are responsible for ensuring these regulations are followed.

Oil and gas development can be classified into three main stages:ExplorationDrilling/ProductionReclamation/Restoration

Exploration involves geophysical and exploratory drilling operations to help determine if oil and/or gas might be present; this includes seismic activities and test hole drilling. Development involves the drilling and production stages; this may include drilling, site development, battery sites, pipelines, roadways and power lines to sites. The reclamation phase takes place after the rig leaves and the well is either categorized as a producer or is abandoned.

Because restoration of native prairie to its pre-disturbance state is a long and complicated process, it is prudent to locate developments in areas that avoid or minimally disturb existing native prairie. In fact, the key to restoration is to do as little damage as possible when initially developing a site or installing a pipeline. Caution should also be taken to ensure that invasive species and weeds are not introduced to the area during any phase of a project. It is also very important to ensure that seed selected to revegetate the area is species appropriate for the specific range site and that seed has been properly cleaned to remove any weeds.Lessees and landowners should be aware that although many subcontractors may be involved during site development and reclamation, the oil or gas company is responsible for all sub-contractors and the work they do during development.


StewardshipHere are a few quick suggestions when dealing with oil and gas companies on your land:Most energy companies operate at a fast and furious pace so don’t be pressured into signing anything before you have taken the time to read and understand it.For landowners, some things to include in a contract are fire protection, fencing, gates, water testing, land spreading, time of drilling, etc. in addition to compensation for access and losses.Agree on a reclamation plan for the site, prior to any work being done and insist on a seed certificate for all seed to be used in the restoration plan (this is done by the Ministry in the case of Crown land).If you have concerns at any time during the process from exploration through to reclamation, be sure to contact the responsible company as soon as possible.

SK PCAP will be hosting the 2012 Native Prairie Restoration/Reclamation Workshop: Bridging the Gap in Saskatoon, SK from February 8-9, 2012. This workshop presents an excellent opportunity for landowners and lessees to learn more about the process of restoration/reclamation on native prairie.

For more details or to register, visit the SK PCAP website at ww.pcap-sk.org.

Additionally, here are a few sources of information for landowners and lessees to educate themselves on this topic:

Saskatchewan’s policies regarding oil and gas developments on Crown lease land www.agriculture.gov.sk.ca/Oil-Gas.

Canadian Association of Energy and Pipeline Landowners Association CAEPLA www.landownerassociation.ca.

For a complete list of SK PCAP 2011-2012 supporters, please visit the website at www.pcap-sk.org.

THE EXECUTIVEHarold Martens President/Director at LargeSwift Current, SK Phone: 773-6782

Doug Gillespie1st Vice President/Director at LargeNeville, SK Phone: 627-3619

Shane Jahnke2nd Vice President/Director at LargeGouldtown, SK Phone: 784-2899 Calvin KnossPast President/Director at LargeRockglen, SK Phone: 476-2512

Brooks WhitneyFinance ChairMaple Creek, SK Phone: 662-4420

DIRECTORS AT LARGEHeather S Beierbach, Maple Creek 299-4512Ryan Beierbach, Whitewood 532-4809Gerry Duckworth, Courval 394-4211Helen Finucane, Regina 584-2773Paul Jefferson, Humboldt ext 272 682-3139Roy Rutledge, Assiniboia 642-5358Robin Wiggins, Fox Valley 666-2103

ZONE CHAIR DIRECTORSZone 1 - Lloyd Thompson, Carnduff 482-3743Zone 2 - Blade Young, Tyvan 245-3310Zone 3 - Kelcy Elford, Caronport 690-5209Zone 4 - Brooks Whitney, Maple Creek 662-4420Zone 5 - Bill Huber, Lipton 336-2684Zone 6 - Brent Griffin, Elbow 854-2050Zone 7 - Keith Day, Lacadena 375-2934Zone 12 - Larry Flaig, Assiniboia 266-2070

AFFILIATE DIRECTORSGarner Deobald - Charolais Affiliate, Hodgeville 677-2589Tom Grieve - Cattle Breeders Affiliate, Fillmore 722-3504Tara Fritz - SImmental Affiliate, Shaunavon 297-3147Karla Hicks - Angus Affiliate, Mortlach 355-2265Connie Housek - SK/Man Galloway, Beechy 859-2268Arron Huber - Shorthorn Affiliate, Lipton 336-2706

APPOINTED DIRECTORSDr. Andy Acton- Veterinary Advisor, Ogema 459-2422

SASKATCHEWAN CCA DIRECTORSLynn Grant, Val Marie 298-2268Pat Hayes, Val Marie 298-2284Jack Hextall, Grenfell 697-3079Reg Schellenberg, Beechy 859-4905

Listings of email and fax numbers can be found on the SSGA website at www.skstockgrowers.com

SSGA BOARD OF DIRECTORS

B

Help the SSGA Fight for your industry,Become a member today!


Calendar of Events

Advertiser Index

Abe’s Signs 40

Allen Leigh Security & Communications 41

Arm River Red Angus 40

Beef Improvement Opportunities/Fort Supply

22

Best Western Plus Inn & Suites 40

Bill Laidlaw Chartered Accountant Professional Corp.

40

Canadian Cattle Identification Agency 39

Cargill Animal Nutrition 42

Cattle Care 42

Chartop Charolais 40

Cowtown Livestock Exchange, Inc. 40

Cristo Ranch 8

Cudlobe Farms 2

Dutch Bunning 6

Elanco Animal Health 40

Feed Rite 41

Frostfree Nose Pumps 42

GelbviehWorld.com 41

Gibson Livestock 41

November

November 2-5 Stockade Roundup Lloydminster, SK

November 3-5 Yorkton Grain Millers Harvest Showdown Yorkton, SK

November 9-12 Saskatoon Fall Fair Saskatoon, SK

November 21-26 Canadian Western Agribition Regina, SK

November 25 Commercial Cattle Mixer Regina, SK

December

December 7-8 South Dakota Cattlemen’s AGM Pierre, SD

December 7-8 FACS AGM Saskatoon, SK

December 10 Advertising deadline for January magazine

January

January 18-19 Cattleman’s Corral Lloydminster, SK

January 18-20 Saskatchewan Beef Industry Conference Saskatoon, SK

January 20 SSGA Semi Annual Meeting Saskatoon, SK

Grayson & Co. 41

Highline Manufacturing 18

Holiday Inn Express & Suites 41

Jackson Designs 42

John Brown Farms 42

Johnstone Auction 42

Kelln Solar 41

Kyle Welding & Machine Shop Ltd. 40

Lane Realty Corp. 8, 40

Linthicum Herefords 40

MCD Welding 40

Man-SK Gelbvieh 42

Masterfeeds 31, 41

Millet King Seeds 41

Nature Saskatchewan 41

Nerbas Bros. Angus 41

New Vision Agro 42

Northstar Seed Ltd. 41

NSL Products 3, 43

Parkside Farm and Ranch 20

Paysen Livestock 4

Pfizer Animal Health 44

Prairie Habitats 41

Quality Starts Here/Verified Beef 17

Rosetown Flighting Supply 40

Saskatchewan Angus Assoc. 41

Saskatchewan Ministry of Agriculture 26

Saskatoon Processing Company 41

Sask/Man Galloway Assoc. 41

Silencer Chutes 42

Sittler Composting 41

Solar West 11,40

Southern Trail Trailer Sales 40

Superior Livestock Auction 41

Terra Grain Fuels 40

West Central Pelleting 32

Western Litho 42

Weyburn Inland Terminal 40

Young’s Equipment 42

You’re not alone.We’re with you every step of the way.

Canadian Cattle Identification Agency’s highly-specialized field team has first-hand experience in livestock operations. Delivering a full range of complimentary traceability support services, their primary role is to educate and assist producers with managing their Canadian Livestock Tracking System (CLTS) accounts.

Contact your local representative today:NORTH CENTRAL SOUTH CENTRAL SOUTHWEST SOUTHEASTBrian Anderson, Team Lead Dee Valstar Nick Anderson Kevin SmithCell: 306-717-2151 Cell: 306-621-0508 Cell: 306-741-4409 Cell: [email protected] [email protected] [email protected] [email protected]

HEAD OFFICE TOLL-FREE LINE: (877) 909-2333

www. canadaid.ca


nks.

Division of Eli Lillly Canada Inc.

Roger MeyersSales Representative

Southern Saskatchewan

Box 153, Minton, SKCell: 306-221-1558

www.elanco.ca

Over 60 years of service!Box 310, Kyle, SK S0L1T0

306-375-2271

www.kylewelding.com

Livestock Water Troughs - From 400 to 1250 gal.

Galvanized Water TanksFrom 100 to 4100 gal.

(306) 567-4702 Box 688, Davidson, SK S0G

Chartop CharolaisGlen and Lyn Sauder

Box 569, Gull Lake, SK S0N 1A0Ph: (306) 672-3979 Fax: (306) 672-4347Purebred CHAROLAIS & RED ANGUS Bulls for Sale

Commercial Herd * Visitors always welcome

Super Edge™ flighting for grain augers, combines, &seed cleaning plants.

Left and right hand available in all sizes. Helicoid & SectionalComplete Auger Repairs

ROSETOWN FLIGHTING SUPPLY Rosetown, SKPhone 1-866-882-2243 • Fax 1-306-882-2217

www.flightingsupply.com [email protected] PREPAID FREIGHT RATES - BC $25 AB/MB $19 SK $18 (per order)

NO FREIGHT CHARGES: One size 75 feet & overMultiple sizes - 100 feet & over

OVERNIGHT DELIVERY TO MAJOR CENTRES

604 Government Road S.Weyburn, SK S4H 2B4

Ph: 306.842.5344Fax: [email protected]

BILL LAIDLAW CA.CFP.Chartered Accountant

BILL LAIDLAWCHARTERED ACCOUNTANT PROF. CORP.BL

MCD Welding Box 502, Nokomis, SK S0G 3R0

306-528-2275

Roller Mills Roller Mills - 30 bu to 1000 bu per hr.Custom Built EquipmentCattle Panels, Headgates, Hay Feeders, Gates, Weigh Scales and Sheep & Goat Equip.

AARON BOHNPro-Pellet Division

Weyburn Inland Terminal Ltd.Box 698, Weyburn

Saskatchewan, Canada S4H 2K8Sask. Toll Free 1-800-552-8808

Tel: (306) 842-7436Fax: (306) 842-0303Cell: (306) 861-1757

email: [email protected]

Call (306) 345-2280 or visitwww.terragrainfuels.com for more information.

“Saskatchewan’s Farm & Ranch Specialists”

For all of your buying or selling needs...Contact one of our Farm & Ranch Specialists today!

To view our properties visit our website at:www.lanerealtycorp.com

Ph: 306-569-3380 Fax: 306-569-3414

Cowtown Livestock Exchange Inc. Maple Creek, SK

Regular Sales every Tuesday @ 11:00 a.m. Locally Owned & Operated

Call for info on Presort & Other SalesPhone 306-662-2648 Toll Free: 1-800-239-5933

CT

www.cowtownlivestock.com

Linthicum HerefordsBulls and Heifers

for Sale

Glentworth, SK

Frank(306) 266-4417

Murray & Jan(306) 266-4377

Best Western PlusInn & Suites

105 George Street WestSwift Current, SK S9H 0K4

888-773-8818 (306) 773-4660

Pick up your copy of your product catalogue at your local dealer.


Innovative Solar Systems for all Applications

AGRICULTURAL - COMMERCIAL - RESIDENTIAL

- Livestock Watering Systems - Water Pumping Solutions - Hybrid Wind / Solar Systems - Pond & Dugout Aeration

- Grid Tie Systems- Off Grid Systems- Solar LED Lights- Solar Hot Water

Call Today for your Free System Consultation !

www.kellnsolar.com1-888-731-8882

WIRELESS COW CAMMakes your calving easier safer and more

PROFITABLE!Pricing from $450.00 - $2,275.00

Save 100's of trips to the barn!Saves 3-5 calves per year!

Stop disturbing them while they calve!Gives you better quality of life!

www.CowCam.caBrandon, MB PH: 1-866-289-8164

since 1996

Prairie HabitatsRURAL & URBAN LAND ENHANCEMENT

• Shallow Water Line & Underground Cable Installation • Tree Moving• Tree Planting • Zero Drift Spaying • Grass & Legume Seeding

• Soil Testing & Fertilizer Blending • Solar/Electric Pumps• Reclamation • Fencing • Consulting

Clint B. Sanborn1526 Hochelage St. W.Moose Jaw, SK S6H 7P9

Tel: 306-693-7803Cell: 306-631-0529

e-mail: [email protected]

C A N A D AOF

INC.

PresidentReynald R. J. Gauthier

204-379-2987


www.milletkingseeds.com

Seed it June 10th...

Swath it 60 days laterBox 16 St. Claude, Manitoba R0G 1Z0

Swath Grazing

Great Cattle Feed Dry or Silage Feed

Forage Seed

Corn Seed

Lawn Seed

Neil McLeod

306-831-9401

Northstar Seed Ltd

Forage Seed

Corn Seed

Lawn Seed

Neil McLeod

306-831-9401

Forage Seed

Corn Seed

Lawn Seed

Neil McLeod

306-831-9401

“Come Grow With Us”Northstar Seed Ltd

350 Langdon Cres. Moose Jaw306-693-6176

www.graysonandcompany.comBranch Office in:

Central Butte - (306) 796-2025

GRAYSON & COMPANYBARRISTERS AND SOLICITORS

Founded 1883

GeneralPractice

Programs for the Canadian Cattleman!

Purebred, Commercial, Backgrounding & Feedlot

For more information please contactJanie Jensen – Beef Sales Manager

at 306-535-0969

®

a Tradition of Quality in Animal Nutrition

Jerry GlabTony ChandriukKrystal NordickJack Wagman

306-891-8914306-540-8774306-231-3233306-536-1004

Performance Feed, Pellet, and Mineral Programs, Supplements

Canadian Livestock Auction. Ltd.

Deadstock Removal

3018 Miners Ave.Saskatoon, SK S7K 4Z8

Phone (306) 934-4887Toll-free 1-800-803-9714

RYAN GIBSONBUS: 306-692-9668CELL: 306-631-0070

FAX: 306-692-3252 TOLL-FREE: 1-800-667-7176

Humboldt 800-947-9186Saskatoon 888-681-4111Swift Current 877-881-1455

Quality You Can Trust

Holiday Inn Express & Suites Swift CurrentReservations: 306-773-8288Swift Current’s Newest Hotel


CATTLE CARE1A 1081 Central Ave N • Swift Current, SK S9H 4Z2

888-773-5773 • www.cattlecarevet.com

Johnson Concrete Cattle Waterers

“The Best Name in Cattle Waterers”Waterers and parts in stock

Compost Turners, Spreaders, Screeners, Baggers

®

Brent Hansen Environmental204-726-3335, www.globalrepair.ca

Cargill Animal Nutrition

Your source for customized animal nutrition products and solutions in Western Canada.

Call us today:

Phone: 1-800-552-8012 Fax: 403-320-6740

P.O. Box 1656 North Battleford, SK

S9A 3W2

NEW VISION AGROBox 479

Hague, SK S0K 1X0


Dealer & Distributor For:- Jay-Lor Vertical Feed Mixers- Feed-Rite- Cargill Nutrena Feeds- Baler twine, netwrap, silage bunker,

covers, plastic wrap, inoculant

PH: (306) 225-2226 FX: (306) 225-2063

www.newvisionagro.com

Helen Finucaneoffice: 306-775-1443 cell: 306-537-2648

phone: 306-584-2773

Carlyle, SK

All types of commercial and purebred livestock auctions and farm sales. Wash rack facilities for livestock

Wayne or Scott JohnstoneBox 818, Moose Jaw, SK

306-693-4715 (Bus)306-693-0541 (Res)

Fax 306-691-6650 www.johnstoneauction.ca

Rod Wendorff

The Industry Standard in Cattle Chutes

403-330-3000www.silencerchutes.ca

SILENCER CHUTES CANADA

Sasha Veitch [email protected]

www.jacksondesigns.ca

catalogues, ad design, event photography,magazine design & layout, posters and more!

Candace Schwartz 306.772.0376

Black Angus Bulls

Shellmouth, MB CANADA 204-564-2540

All Sales by Private Treaty

www.nerbasbroangus.com


BUSES • BOATS • SPORTS • AIRCRAFT • RV’S • BATTERY TERMINALS • ATV’S TRAILERS • TOOLS • SALT TRUCKS • FORESTRY • MINING • ELECTRICAL

®

“WOOL WAX FORMULA”

ENVIRONMENTALLY FRIENDLIERSOLVENT FREE

NON-TOXIC

SUPERIOR LUBRICANTRUST & CORROSION PROTECTION

LONG-TERM PENETRANT

AUTO • INDUSTRIAL • FARM • TRUCK • MARINE • HOMESUPERIOR LUBRICANT

RUST & CORROSION PROTECTIONLONG-TERM PENETRANT

AUTO • INDUSTRIAL • FARM • TRUCK • MARINE • HOME

Bobcaygeon, Ontario K0M 1A0 • T: (705) 738-2321 • F: (705) 738-4550www.nlsproducts.ca • [email protected]

Acceptable for use in Food Plants in CanadaAerosol (AS): # 1450 - 145 g, # 3300 - 333 g Bulk (NAS): # 3700 - 3.79 L Can,

# 4300 - 20 L Pail, # 4500 - 208 L Drum, # 5207 - 237 ml Brush Top CanItems listed above are Canadian Food Inspection Agency Approved (CFIA)

NATURE GIVEN MATERIALFLUID FILM UTILIZES THE UNIQUE MOLECULAR ACTION DERIVED FROM WOOL-WAX (Lanolin), (Nature given, taken from the wool of sheep), along with other corrosion inhibiting ingredients. One of the best lubricant and corrosion control agents found in nature today. FLUID FILM has been used for over 50 years in the Highly Corrosive Marine Environment of ships and off-shore drilling rigs. Certified Salt Spray Test - 1800 Hrs. U.S. Navy & has 10 assigned NAS (Military) Numbers. FLUID FILM - developed and perfected as an unparalleled Rust & Corrosion Control System. Non-drying properties for Superior Lubrication. Once in place, stays put, forming a continuous, durable, ALWAYS ACTIVE protective barrier.Will not harm painted surfaces, plastic, or most synthetic rubbers. Repels & resists water washout.

PROVIDES LONG-TERM PROTECTION FOR ALL YOUR TOOLS & EQUIPMENTPROTECTIVE PROPERTIES START WORKING IMMEDIATELY

Penetrates right through rust, stopping all metal deterioration on contact. Migrates to inaccessible areas by capillary action. Impregnates the pores of exposed metal, keeping moisture & oxygen out. Excellent waterproofing with “NO DRIP” bonding properties. Terminates Both Natural and Industrial Atmospheric Corrosion. Eliminates the destructive corrosive effects of harsh chemicals such as calcium chloride, salt, fertilizers, herbicides and pesticides. FLUID FILM prevents steel from rusting; aluminum, magnesium, copper, tin, brass & zinc from oxidizing; chrome & bronze from pitting.

SUPERIOR VEHICLE UNDERCOATING - RUST’S WORST ENEMY• UNDERCOATING APPLICATION INSTRUCTIONS •

SHAKE WELL BEFORE USING (Apply Sparingly) Apply FLUID FILM “NAS” by brush, roller, dipping or pressurized sprayer at 60 to 80 lbs. psi, (at the sprayer) with a spray nozzle orifice of 40 - 50 thou. KEEP CONTAINER TIGHTLY CLOSED.FLUID FILM UNDERCOATING INSTRUCTIONS: Give the vehicle’s undercarriage a blast of water to clean off any excess dirt and let the heavy water drip off for 5 minutes. Apply to the panels and doors as normal.Apply FLUID FILM right over the damp metal. If any is dripping off, you are over-applying the product.

WILL NOT DRY OUT OR EVAPORATE • NOT WATER SOLUBLE • DISPELS MOISTURECAN BE APPLIED OVER DAMP / DRY SURFACES • TEFLON / SILICONE / SOLVENT FREE

NON-CONDUCTOR. WILL NOT CAUSE STATIC ELECTRICITY, REDUCES STRESS CORROSION.PREVENTS ICE / SNOW FROM BUILDING UP ON MOVING PARTS. WORKS IN SUB-ZERO -50ºF - +350ºF.

FF0311EN

B

TM Trademark of Pfizer Products Inc., Pfizer Canada Inc., licensee.SCG-052 SCG4 JADP01a 0911 E Best practices yield results.

Make sure you’re on the right road to effective scours protection.

www.plp-cattle.ca

Antibodies concentrate in colostrum just 2-5 weeks before calving. Do the math...

ONLY ScourGuardTM 4KC’s label directions strategically match colostralantibody development and its concentration in colostrum in dams.Which means that strategic vaccination with Canada’s #1 scoursvaccine1, ScourGuard 4KC, helps to maximize colostrum quality andprotect against major causes of scours.

Go to timing-is-everything.ca for more details on how to maximizecolostrum production.

References: 1. Impact Vet 2011 cumulative sales, August 2011. 2. Morrow DA, editor. Current Therapy in Theriogenology: Diagnosis,treatment, and prevention of reproductive diseases in animals. Philadelphia (PA): WB Saunders; 1980:1143 pp.

Peak ColostralAntibody Development

occurs 2-5 weeks before calving2

Initial vaccination6-9 weeks before calving

First year booster3-6 weeks before calving*

Annual booster3-6 weeks before calving

Calv

ing

*First year doses should be at least 3 weeks apart

SCG_052 Stop Ad Sask Beef Biz_Layout 1 11-10-13 4:05 PM Page 1

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