Western Feedlots shutting down feeding operations

[ajl]

Likely record losses on feeding cattle in a down cycle and now quitting before the up part of the cycle was a biggest actual factor. The very real threat of carbon taxes coming for the large feedlots was likely a factor. However, it does appear the investors think land speculation is the game as 'farming' will continue. I think that ship has sailed but it is possible AB farmland get bid up like Vancouver as more Chinese money is going to flee China in the next 5 years. The resale value of a used feedlot is $0.

[perfecho]

SF#...take both hands and push real hard....maybe you can get your head out of your ass. The reason we are in this mess is from the Cons mismanagement....not that the ND's are going to be much better, but a changes was needed and another one will be needed soon. Had an long term cons MP for a visit, and even he agreed. He was in Federal politics during the Klein time, and could point to the mismanagement. Had we had a real government for the past 20 years, we would not be operating a deficit....and the Bill 6, carbon tax, etc., were already on the table, just a matter of time. Had the wildrose gotten in, Alberta would be in an even rougher position...many more laid off.
Although I think the shoe hasn't really hit yet, many sectors are actually doing OK. Friend has an offer on her house at what I think is a ridiculously high price...friends selling new development houses on south side of Edmonton, having some of their busiest times. I don't get it, but the world hasn't stopped out here.
You are likely right on oil field money at Western...and they spent too much and now the gov likely won't help them out....not like the previous government, who would have helped....if you were their friends.

[blackpowder]

Intersting how over half the comments after the article in The Herald are anti meat, business, modern ag.

[wmoebis]

See lots of small feedlots sitting empty. Operators said it was because they couldn't compete with big lots.
See lots of feed grain that maybe a hard/slow/low valued sale.

Is there an opportunity to get small feeders back into business and market some of this low quality grain through there own or joint venture cattle.

So what if feed conversion rate is slow we aren't going to market all this feed grain in one year anyways.

[perfecho]

Our game plan is likely changed for this year. Considering keeping calves and putting the barley through them, then sell. We are small operators....much smaller since BSE...but the local market thing seems to be growing by leaps and bounds...do a little already, so might see if can expand that. Living near Edmonton gives a pretty big customer base. Sell purebred cattle as well, but think that market is going to be off somewhat as well.

[grassfarmer]

No I disagree.

Oil guys liked cattle as a right off.

Oil guys hate NDP and Your princess.

Oil guys don't need right off.

Oil guys shut it down.

Its politics.

NDP is a disaster for farmers.

Real simple.

NDP spells disaster. Just look at Alberta.

Disagree from a position of ignorance. Know nothing about Alberta, nothing about livestock farming, cattle feeding, the beef sector, no skin in the game - had you even heard of Western Feedlots before yesterday? If you don't know the difference between a write off and a right off are you right wing, write wing or even left wing?

I wonder if Ezra and co are working on another media stunt like the hilarious failure of "Bernard the roughneck"?
Maybe fly in Pete the pen rider from his parents basement in Toronto, dress him in cow crap covered stetson and 'kerchief to plead the case.

[SASKFARMER]

Delivered feed barley to them you idiot!


God think oil no money!

Alberta NDP

Real bad and you idiots think they cities won't vote for her again

Follow the money grass

[BFW]

Good to see all the armchair quarterbacks out commenting on Western's demise. One thing I can assure everyone of is that there was little if at all, any, oil money involved in this operation. Oilmen like ranches in the foothills and yearlings on grass not shitty boots and the daily routine of feeding cattle. Some old money perhaps, but not oil money. I have spent my whole career feeding cattle and the shine started coming off in the early 2000's. Lots of reasons from higher grain prices here in Canada relative to the US, some overcapacity here on the prairies, change in direction of Canadian dollar, consolidation of packers etc. BSE and the resulting fallout put the whole cattle industry on the mat despite pretty good support from some programs. Basically went through a period of about 10 years of losses with some periods of small profits until 2013-2014. Western Feedlots traditionally was a custom feeder owning only a small percentage of the cattle themselves. They changed their business model to owning a large portion (basically all) of the cattle in the yard during this time frame. so pick the reason, greed, bad management, poor timing, bad luck, packers , government, whatever. The fact remains Western's closing takes a major buyer of feeder cattle and feed grains off the market. They will be absorbed by others in the business. it may represent opportunity for some but often where there is smoke there is fire.

[SASKFARMER]

It just baffles me why you Albertans didn't phone a family member or friend in Saskatchewan before you voted!

Yes change is good but you picked the worst kind of change!

Take a liberal as they take from you and you smile and wave as they have other hand on your wallet and just a few bills for them personally!

You got what you deserve! And once they gain a foothold it will be years till you get her out!

But none of us from Saskatchewan didn't warn you enough times

NDP isn't a farmers friend! Oil mans potash oh wait useless civil servant jobs there is the baby that drives the economy

[grassfarmer]

It just baffles me why you Albertans didn't phone a family member or friend in Saskatchewan before you voted!

Not much point if they all talk bullshit like you.

[grassfarmer]

So Jeff when they went to owning basically all versus custom did they really own them or was it a captive supply arrangement with Cargill?

[burnt]

Disagree from a position of ignorance. Know nothing about Alberta, nothing about livestock farming, cattle feeding, the beef sector, no skin in the game - had you even heard of Western Feedlots before yesterday? If you don't know the difference between a write off and a right off are you right wing, write wing or even left wing?

I wonder if Ezra and co are working on another media stunt like the hilarious failure of "Bernard the roughneck"?
Maybe fly in Pete the pen rider from his parents basement in Toronto, dress him in cow crap covered stetson and 'kerchief to plead the case.

Now that's funny - the poster here who has drifted around more than anyone else on this board flies in with a two-bit, drive-by sentiment!

[BFW]

they mostly went to Cargill but Western would have retained price risk on the cattle

[mcfarms]

Was hoping BFW would step into this thread and comment , read what he said carefully. I never understood why they went from a custom lot at least partially, nice to have some of your business where you can pencil a profit and let others take the risk. Westerns closure if even for a while will certainly take a lot of money out of the economies of towns like High River , Strathmore and Calgary. I know a lot of families that this is going to really affect. Probably mine too one less player bidding on my calves this fall.

[perfecho]

Saskfarmer...the ND's were the only one that was ready....that's why Prentice called the election. Thought he had it all worked out, even lied to Daniel smith. I would likely be more of a Alberta Party member than anything, I the leader is one who seems to have integrity...but , they weren't ready.
But back to the feedlot situation....still believe their mismanagement left them with little choice, but need to blame something else. It has been a blood bath for feeders, but they have also made a killing at times.