Price of calves need to double!

[The Don]

I thought I should back up the cattle producer number. This is a screen shot from Stats Canada.


Following this trend / pattern the 2400 number should be revised downward substantially.

[The Don]

Carson Callum GM of Manitoba Beef Producers is optimistic for the beef sector according to the last Cattle Country paper I got. I don't see any factual evidence to support this optimism. Feeder cattle October 22 futures price 188.125 I think the 2021 price was around $156.00 That $30 is going for feed increases to the backgrounder. There will be no cash "trickle down" for the cow calf producers. If you fought the good fight and hung on to your cows and some calves the future price doesn't reflect the added costs you are carrying.
The big dollars of cattle support dollars coming from the Federal and Provincial Governments is slow in coming. They have expanded the list of things they will pay for now. Why they didn't just pay it out based on the number of cattle you own is beyond me. I think the cost to administer the program is exceeding the pay out at this time so they had to sweeten the pot.
There has been a steady drop in the number of producers in my neighborhood also. Looking back to 2014-15 the price jumped up (briefly) but if you bought in and expanded in 2016 you got caught. Paying then current prices for breeding stock cost you dearly and there was no money to pay for those animals going forward. The "cattle cycle" is not working. In the US government money has supported the cattle sector. In Canada there has been no such support that's one reason why the Canadian Beef sector has shrunk so much. Selling cattle in 2021 for the same price as in 1990 is not encouraging growth in the industry and it shouldn't. If you can produce a half a cereal crop and sell it you will make way more than feeding that to those cattle.
They are already starting to beat the drum to get fresh blood into the business. When they publish the Cost of Production information they are way out to lunch. When you compare a producer that started in 1960 to that person you want to buy your operation in 2022 it's not going to work. They like to throw a bunch of numbers around using the B to the power of three principle. Bullshit Baffles Brains. I have never been able to make Manitoba Agriculture numbers make sense. They have shown a negative margin for the last number of years but they have understated the actual losses.
Manitoba Beef Producers management keeps saying there are 6300 producers. If you look at the 2016 census data and do some basic math the current number is around 2400 or so (my opinion). That's why the countryside is staring to look real empty of cattle. I can't see the benefit of inflating the producer number.
I keep waiting for reality to rear its ugly head and someone in a position of authority see the light.
I'm not holding my breath.
My cattle numbers have dropped in half this year and they will all be gone next year. I'm not interested in reliving 2016.

[blueversi]

Most areas of North America have been priced out of cattle production. Guys lied to themselves as to the viability of their operations by using off-farm income to subsidize the on-farm loss. That practice caught up to a lot of guys this year.

It will be worse next year for guys that have a big bank note and only 1/2 the cows to pay for it. Is wifey going to be as understanding when hubby says they have to tighten their belt to pay the farm loan?

There is a big exodus coming. Hoping it's just the older guys and not all the young ones, but the old guys are dropping dead and the young ones are flirting with bankruptcy.

If there’s another big exodus who will be left? In our part of our RM it was probably 90 percent cattle farms, not big operations 50-150 head maybe. Off the top of my head there were 15 separate producers before BSE, then gradually they began to sell off and find something else to do. Right now there’s 2 producers left. Every acre that can grow grain or canola has been converted over. Cattle industry has been toast for quite a few years here.

[The Don]

Came in from feeding this morning. -30 C with the wind felt like -40C.
Just thinking that for every 50 cows the money you lose daily would pay for your stay in a place like this... The hardship is you would have to pay for drinks...

[littledoggie]

I look at that as the opportunity they have been looking for to bring back COOL.
The US Government already provides lots of support to the American Producer.[ATTACH]9524[/ATTACH]

Yes, some of the same characters involved as with RCALF. The US has a longer way to go to get to complete vertical integration. I don't think they even have mandatory RFIDs (or whatever technology). Canada is much, much closer. I was told by a top bureaucrat in Ottawa back in early BSE that vertical integration was the goal.

[littledoggie]

And luckily for us, the same government is here to support us as the one during BSE. (sarc)

[WiltonRanch]

I could see the Americans bringing back COOL again but it wouldn’t be as insidious as the government funding producer packing plants or feedlots with stipulation no Canadian origin cattle can go there. Much like the ev credit only applies USA made cars. That’s probably how they’ll do it to us this time.

[The Don]

And compete the big packers will. Watch for crippling regulation that only the big packers can absorb. Here comes vertical integration for the beef industry.

https://www.canadiancattlemen.ca/daily/biden-unveils-plan-to-boost-competition-in-u-s-meat-industry/?utm_source=GFM+Publications&utm_campaign=eda49c31 46-Canadian+Cattlemen+daily+enews+Jan+04%2C+2022&utm_ medium=email&utm_term=0_2da8244677-eda49c3146-88078981

I don't know how to do the hot link anymore.

I look at that as the opportunity they have been looking for to bring back COOL.
The US Government already provides lots of support to the American Producer.

[littledoggie]

And compete the big packers will. Watch for crippling regulation that only the big packers can absorb. Here comes vertical integration for the beef industry.

https://www.canadiancattlemen.ca/daily/biden-unveils-plan-to-boost-competition-in-u-s-meat-industry/?utm_source=GFM+Publications&utm_campaign=eda49c31 46-Canadian+Cattlemen+daily+enews+Jan+04%2C+2022&utm_ medium=email&utm_term=0_2da8244677-eda49c3146-88078981

I don't know how to do the hot link anymore.

[shtferbrains]

Joe Biden says he os going to spend $1Billion
To try encourage some new competion;

As part of the plan, the US Department of Agriculture will provide up to $375 million in grants for independent processing plant projects, $275 million in partnership with lenders to provide loans and other support to businesses to increase access to capital, $100 million for workforce training, $50 million for technical assistance and research and development and $100 million to reduce overtime inspection costs to help smaller processing plants

Large part of the sell is to reduce prices to the consumer as retail beef is up 20% y/y.

Credit to them for admitting the problem and hope it does provide some indication of more competitive bidding for live cattle.

Goverment involvement traditionally makes things worse. Regulation got us to where we are today.

Wonder how much of that money the existing packers will take?