The cull cow market?

[cowman]

The boy got into the sale at Burnt Lake on thursday to check out the yearling market.
He caught the tail end of the cows and said prices weren't all that good. Big grass heavy cows were in that 35 to 36 range and he said some smaller cows were as low as 25 cents.
Hopefully fairly soon they will get the border open to cows and we can start getting a better return on them? Now that Lakeside is back buying cows maybe we can start to get rid of the built up inventory?

[grassfarmer]

The cows I saw sold last week also fell short of the market reported levels. I'm guessing the markets are playing their part in trying to lure cattle to town at a time when producers are busy haying or have plenty grass and are not in a hurry to sell. We certainly need to make inroads into the massive backlog of cows on farms but I can't see this being done at prices any higher than we have received for the last two years. With neither OTM beef or cattle likely to cross the border any time soon I fear when the annual glut of cull cows hits the market this fall prices could drop any gain in value they have enjoyed in recent weeks.

Perhaps if CBEF and other industry groups hadn't spent the last two years blatently lying to producers about other countries being prepared to purchase BSE tested beef we could have had at least one slaughter plant killing and adding value to these OTM cattle?

[farmers_son]

Last time I checked the Americans were not exporting significant volumes of cow beef beyond NAFTA either, tested or not. And they have lots of packer space.

I do expect the Americans will have a rule in place very shortly to allow trade in not only cow beef but live cows to take place. Canada is showing leadership in this regard right now by continuing to allow U.S. cow beef and cows destined for slaughter into Canada. I would expect within the next short while the Americans will reciprocate and then loudly proclaim they are showing the world how to be free traders.

[grassfarmer]

Oh? where have you found evidence of an imminent rule change on OTM cattle by the US? I haven't heard a peep on that front.

[grassfarmer]

Such a ruling makes sense, and hopefully it happens sooner vs later.

Has anyone heard anything further about the latest suspected BSE case in the US?

I haven't heard a thing on the news and haven't seen anything in the newspaper either.

[farmers_son]

I have heard rumblings and rumours, that is all. I hear some support in the U.S. for a resumption of normalized trade, if only to assist the U.S. in persuading countries to resume trade with them.

Certainly the fact that it is the U.S. that is finding the BSE positives and not Canada is supportive to seeing trade in cows and cow beef resume. It will not be cow beef first then cows later, they will both go across the border at the same time.

Once the USDA issues a rule, I would not expect much opposition from the U.S. side of the border this time. Although they are as protectionist as ever it is now in the U.S. best interest to play down BSE and see trade resume.

[15444]

I agree f_s, there were reports, before the July 14th decision, about the USDA hinting that the process for opening the border to cows would begin in November/December 2005. The reasoning was that as long as the Canucks didn't try anything foolish (like trying to sneak something into a UTM load), and that trade in UTM was running smoothly, that a OTM rule would follow soon after. Now that Canadian packers don't have to segregate UTM and OTM lines anymore (according to the Producer), I don't see why there should be much worry about OTM beef, dead or alive, going into the US.

[15444]

Just saw Manitoba_Ranchers post on Ranchers Bull Session, with a recent article still mentioning that the USDA is hinting on plans to introduce the OTM rule late this year.

[cowman]

I believe AMI has this on the front burner again? Caught a little article in one of the papers(I think the National Post) late last week?
The arguments for not allowing cow beef in are all gone? Not really any reason it shouldn't happen?
I wonder how hard our government is pushing this? I mean I find it funny that we never stopped cows/cow beef from coming in but the US continues to do so? Do we look like the good guys here or what?
I suspect cows will be heading south a lot earlier than this winter? My guess would be by September 1st?
Haven't heard much from R-CALF lately, but then I don't go to the American sites so don't know what they are saying? Are they still doing their best to discredit the USDA and telling the consumer that North American beef will kill them? Have any of them apologized for telling lies and trying to ruin their own industry?

[farmers_son]

Given that September 1 is only one month away that date may be a bit optimistic.

When Mike Johanns amended the proposed USDA rule to delay the importation of OTM beef from Canada last February 9 he made this statement "At the same time, I am asking U.S. officials to move forward in consideration and development of a plan to allow imports of animals 30 months and older for slaughter as well as beef from over 30-month animals as the next step in resuming full trade with Canada. As always, decisions will be made based on the latest scientific information and with the protection of public and animal health the highest priority.”

It would therefore seem that the USDA has been working to draft a rule to allow the importation of cow beef and live cattle since last February and now should be 6 months into the process. It would not surprise me to see an announcement of this rule within the next short while, especially since it has become clear the U.S. has a similar incidence of BSE as Canada and there is no justification whatsoever for continuing what was really an unfair ban on our cattle that was not justified by any science. If the USDA wants to support science based trade they should correct the problem with blocked imports of cows and cow beef immediately. Any delays could only be based on protectionist and economic considerations.

[grassfarmer]

I hope you are all right but I fear you are being optimistic with the timescale. As usual there was no logic in a ban in the first place - OTM beef could have been crossing the border in September 03 in boxes the same as UTM beef - as long as the specified offals were removed there was no food safety issue.
That aside the bureaucrats as usual will be in no hurry - why should they be? six or twelve months are all the same to them.
I think if we do see movement on this issue it will be boxed beef first with live cattle some way behind. Fat culls could be hauled straight to slaughter plants in sealed liners but if they are writing a rule to allow OTM live cattle to cross the border won't that by implication have to be written to also allow them to go to a feedlot for further fattening which opens up a whole different kettle of fish because of the lack of a US traceability system. I would think they will possibly allow live OTM cattle to cross the border at the same time as breeding cattle - who knows when that will be?

[whiteface]

i agree with that grassfarmer. OTM are going across if and when breeding cattle are allowed through. And i say if and when because i beleive it's going to be a wait yet. Sorry, f-s, just my gut feeling. Have a good day all!