CATTLE FAX

[DogPatch]

This was copied from a US side website that most of us have visited I am sure. Why are they so UP and OPTIMISTIC and us Canadians are throwing in the towel? Why aren't we seeing these prices?


The latest Cattle Fax Update reports that calf prices, feeder cattle prices and fed cattle prices were all up $1 to $2 per cwt – for the second week in a row. Cattle Fax believes we have already seen the seasonal lows in calf prices. If true, this is great news!



Cattle Fax Prices for Week of Oct. 23rd

Slaughter Steers 84.58

Steer Calf (450 lbs.) 112.04

Steer Calf (550 lbs.) 100.90

Yearling Steer (650 lbs.) 93.76

Yearling Steer (750 lbs.) 90.79

[smcgrath76]

I have been doing some thinking on this
a bit. Look at a 550 weight calf...
550 Weight
100.9 US Price
554.95 Total US$
0.95 584.16 Canadian $
11 573.16 Basis
100 473.16 SRMs

$/pound $0.86

By the time you figure out the basis and
take of the price differential between
SRM removal in the CFIA environment vs.
the US the price is severely depressed.
These are pretty rough numbers and there
are some other factors, but it is pretty
easy to see how BSE is still killing us.
What was the price/time frame, etc. of
testing everything again? Even $50 seem
s like a bargain.
There is also a roughly $30/head premium
available for age verified cattle (oh
wait I forgot...)
That equates to around 80 $ per head.
I have a couple of things I could do
with that money.

[kato]

But the premium is not for us.

We were talking to a buyer last week about getting a bid on our calves, and asked if he paid for age papers. We were told they weren't necessary, because they just scanned them at the feedlot, and got the birthdate from the database, and got the premium that way.

And our incentive to age verify is what????????

BTW, he did not get the calves.

[kato]

The CCIA needs to put a box on the website that we need to tick off before the ages are released to whoever scans them. That way they can still trace them, and we get control over who gets the premiums.

My bright idea for the day.

[perfecho]

And lets not forget, the total amount of calves available for the year will also known........gotta luv ALMA...for our own good!

[coppertop]

And today in question period in the
Alberta Legislature, the Ag Minister
responded to a question from a rural MLA
by saying that the entire age
verification process costs the producer
less than a dollar per animal. I wonder
where he buys his ear tags
!!!!!!!Obviously, the Minister doesn't
feel that the cattle producer's time is
worth anything, first mustering the
animals to tag them, then entering the
information onto the website etc. but of
course it's for our own good !!!!

[grassfarmer]

With respect Coppertop that is a cheap shot at the minister and quite wrong. You had to tag them with CCIA tags before so the tag price is irrelevant Most people already kept calving records so the only cost of age verification is the time spent entering them on the computer. I can put 100-120 an hour on there so it's not costing me that much as I don't value my time at $100/hr on this kind of activity. For folks that are lazy or grudge the time they can still use the starting date of their calving period and be done much quicker. Plus there are lots of people still entering the info for free - auctions, counties etc. This is a non-issue in my mind I wish people would get over it and start looking at the things that are costing them several hundred dollars per head.

[smcgrath76]

GF - pennies make dollars (I have a wee
bit of Scotch in me too).
I really resent the fact that the $ I
made age verifying before have been
removed from my pocket. I have yet to
see anything the AB Gov is doing replace
that money (time will tell). I am
pretty well past the trickle down theory
of economics.
I do appreciate your comment that we
need to look at what is costing the big
$. The best way to save money as an
industry is to look at your biggest
costs and ask what if we didn't do that
anymore?

[coppertop]

grassfarmer the minister has placed this
regulatory burden on producers, not
packers or feeding operations, and I
know you are his #1 fan but from what I
have heard out in the community at
meetings, including ones outside my own
area, he is one of the most unpopular ag
ministers we have had in this province.
According to the Minister during
question period in the legislature
yesterday he is doing wonders for
exporting our beef, so you tell me why
the prices are in the tank ????? I
honestly doubt if the minister ever sits
in an auction market.

[kato]

Our fat prices will remain in the tank until we have some competition for our cattle besides the two packers we have now. We still haven't cut the dependence on the U.S. market, and the influence of that market on ours. It doesn't matter how many other export markets we open if our prices are still based on U.S. price less basis and exchange. It's the same setup we've had for years, except now we don't have the U.S. market to provide that extra bidder.

That's the bottom line. They won't pay more until they have to. They won't have to until there's someone else to bid against, or until the cattle are almost all gone.

The market we have now for feeders is a good example of what happens without American feedlots bidding on our calves. The border may be open, but if they can get them cheaper in the U.S. they will. It may as well be closed, for all the good it does us. Our buyer says he has all kinds of U.S. buyers who would love to take our calves, but they would pay a lot less for them, and even bought cheaper, they aren't worth the bother.

We need prices in the U.S. to go through the roof. It shouldn't be that way, but it is.

[grassfarmer]

I'm far from his biggest fan Coppertop and unlike you I'm completely opposed to the party he stands for. Just pointing out that producers would do better to get focused on the real issues. Deciding whether he is the best or worst Ag minister is irrelevant, the cost of ALMS/ALMA is largely irrelevant. Moaning about the cost of tags, age verification, premis ID are all small ticket items.

We are selling a large number of cull cows this fall and are taking 28-34 cents/lb for them. These are not the crocks they are decent older cows carrying a good bit of condition. There is the real crime if you are looking someone to blame. Every cow we sell is a several hundred $ donation to the Nilsson Bros. benevolent fund. Pure and simple as Kato says - no competition so there is no bottom on where these cow prices can go. They are landing 650-700lb carcase cows for $400. The fed cattle are little better due to no competition in that sector either which is filtering back to the feeding sector - no wonder they won't pay for calves. That's the problem and until people wake up to it and quit blaming minor false causes nothing will change.

[coppertop]

grassfarmer, I don't understand your
reference to false causes. I agree with
you regarding the entire Nilsson issue,
but the added regulatory burden to the
producer isn't helping the situation.
There is a cost to putting in tags, and
there is a cost to age verification if
we value our time, that is my beef with
the Minister, he feels that our time is
worth anything, and yet no-one expects
government to work for nothing. I
received a press release this morning
about yet another trade mission the
Minister is involved in, this little
junket will cost the taxpayers a mere
$49,000.00.
I don't agree with the agriculture
policies of our provincial government,
nor do I agree with the downloading the
department is trying to foist off on
municipalities with respect to helping
farmer's age verify their calves. I
don't sit back and complain about the
government, I get involved and voice my
opinions in any forum available when the
opportunity arises.

[perfecho]

And let us not forget the 90 people hired to help with age verification, that money is "given to farmers" as the AB gov budgets reflect. There have been millions spent to "help" livestock producers...this money is seen by taxpayers as gravy trains to the ag sector...and yet much of it goes to the Kim G's of the ag sector...(read the latest atricle on ALMS in the "Wheel and Deal")
This is a cost, mostly to us.
From the first post. the US is not doing much better with their cattle pricing, but I believe they have better support systems. They seem to suffer from the same problem we do, not enough competition. There is a great deal of money being made in between the farm gate and consumer plate....somehow this has to change....and it will not be done with ear tags.

[kato]

I'm ticked off that we aren't adding any value to our calves due to age verifying, but I'm not upset about that cost as much as other costs.

In this country there are added costs for SRM removal, and the loss of value for bits and pieces due to the total feed ban. Why are we holding our beef to a higher standard than the beef we import from the U.S.? What is that all about????

Either we need to demand the imported U.S. beef meets our standards, or we need to harmonize our standards with them. It's like our own regulators are right in bed with the likes of RCALF in the campaign to drive us out of business. They are doing us as much harm as anything else out there right now.

After all, so far, has this higher standard made any difference at all to our bottom line? Oh yea, it will help open new markets. Oh yea, and as we've seen, new markets do not mean new money, at least for us.

Geeezzzz .................

[perfecho]

Totally agree....but that doesn't help...and the powers that be make their income regardless how well we do!