Reports last week that the United States will resume the importing of boneless cuts of Canadian beef came as welcome news to district farmers, but some feel it may be too little, too late.
“It’s a start,” said Peter Spuzak, president of the Rainy River Cattlemen’s Association. “There is still time for prices to recover, but everybody is still nervous.”
Spuzak, however, said he sees a long road to recovery ahead—even if the continued ban on live animals going into the U.S. was lifted immediately. And if that doesn’t happen soon, it may be too late for some farmers.
“I predict half the beef farmers are going to call it quits over this,” he warned. “Many of them are older people and will just pack it in rather than try to start over.”
Amos Brielmann has one of the larger cattle operations in the district. Currently running 1,500 head on his farm near Pinewood, he sees an even bleaker outlook.
As well, he feels the government could—and should—be doing much more to help farmers.
“What really bothers me is the federal government didn’t have plans in place to deal with this,” Brielmann remarked. “After what happened in England a few years ago [where there was a serious outbreak of mad cow disease], you’d think they would have been prepared.
“I’m not optimistic. Right now if they start moving boneless beef, the feedlots may start buying yearlings, but at what price?” he wondered.
Brielmann, who runs a cow/calf operation, said the going price for such animals is between 50 and 60 cents a pound. But he noted the break-even price for operators like himself is around $1 a pound.
“If that doesn’t change, they can have the keys to a lot of farms,” he predicted.
Brielmann said the problem is further aggravated by the dry summer here, which has reduced hay yields by up to 30 percent. This means those farmers who are stuck with animals they can’t sell will have trouble feeding them over the winter.
Since up to 10 percent of the herd is comprised of older cows that no longer produce, the only alternative is to send them to slaughter.
The problem, he stressed, is the facilities for that are almost exclusively in the U.S. and if the border remains closed to live animals, farmers may be forced into acts of desperation.
“It costs $300-$400 to feed a cow over the winter,” Brielmann explained. “With no market for them, farmers may have to just kill them and bury them.”
Part of the problem is the government continues to accept massive imports of beef at a time when there is a glut on the market.
But according to RRCA past president Tom Morrish, there’s little that can be done about that because Canada is bound by long-standing trade agreements, including NAFTA.
However, there is still some room for farmers to manoeuver—thanks to market players.
“Some people are buying on speculation,” said Morrish. “Of course, they’re counting on the border being opened in time for them to cash in.”
Some have predicted the border, in fact, soon will be wide open since the door is already ajar, but Morrish is more cautious.
“I’d be surprised if they’re sending cattle through before the end of the year,” he predicted.
In the meantime, others like Spuzak still intend to go through with the annual yearling sale next month in Stratton—even at current prices.
(Fort Frances Times)
Fort Frances Times
Local News from Across the Rainy River District
