Western Feedlots shutting down feeding operations

[Hamloc]

Just read a news release that Western Feedlots is feeding out existing inventory and they won't be refilling. 100000 head capacity ouch! As a cow calf producer I am certainly concerned at how this will affect the market. As a grain producer I am also concerned. They blaim extreme volatility in the beef markets as well as the present economic and political climate in Alberta. More job loss and more economic pain Alberta.

[foragefarmer]

"They blaim extreme volatility in the beef markets as well as the present economic and political climate in Alberta"

Ya, the Alberta NDP are to blame for the recent crash of beef prices in the Canadian market, nothing to do with the operator not realizing that the record prices wouldn't last forever. Maybe he should have been given some kind of government subsidy to cover his short fall, I'm sure a PC government would be doing just that, or maybe Brad Wall could have saved him if he was on the other side of the border.

Just like grain farmers who thought the sky was the limit for grain prices a couple of years ago, and those American buyers would be pounding on their doors to buy their wheat. Remember all the poster's here on Agriville making those comments, pretty quite now, on that topic.

Hey, that's how the free market works, the weak get eaten by the strong, always has been always will be that way. As Neil Young says "Keep on Rocking in the Free World"

[sumdumguy]

Is this the first time the beef market cycled? Seems this pattern repeats itself every 7-10 years. Kind of like climate change.

[jethro456]

Citing the political situation in Alberta doesn't mean they expected subsidy. Increased corporate income tax, bill 6, and carbon tax to name a few. I think they are even talking about a per head carbon tax on livestock. Sounds like a great environment to feed cattle in

[WiltonRanch]

It is a shame when a large domestic player goes down. We all know the cattle market cycles and I imagine Western Feedlots does too. Something more is at play for them to quit than shitty prices. I am under the assumption that they probably had their ass handed to them last turn and they're cutting their losses. This last round of good prices was alright but the real long term trend of the industry is a contraction of the industry in general. It's easier to buy bigger equipment and farm more acres but for someone to expand a herd drastically involves not only more land but a lot more full time labour. Sure there a some who will pick up the slack but for the old boys dumping their 150 cow herds there isn't enough willing to do so. I am young and run a decent sized cow herd with my folks and have no intentions of ever expanding because I know I couldn't do a job of it. Our winters dictate how much misery there is to be in the cattle business.

[Hamloc]

Forage Western Feedlots has been in business since 1958 so I assume this decision was not made impulsively. I know the county of Lethbridge was implementing a per head tax for livestock feeding operations. Possibly they were concerned about how the up coming carbon tax would affect freight rates. Governments are in the mood to pile on taxes and fees lately maybe they felt they couldn't compete with other jurisdictions. For you to compare this to the world wide slump in wheat prices is quite amusing.

[perfecho]

Or, perhaps they could not weather the storm of losses the $2000 calf prices brought on....a feeder friend of mine says it came to $500-1000 per head...and heck, why not blame others...its not our fault and who better to blame.

[perfecho]

Maybe the 1000 is a stretch....

Anne Wasko, market analyst with Gateway Livestock, said the pain in Western Canada’s feeding sector right now is virtually unprecedented, with the only comparison being the difficult post-BSE years of 2003-2005.

“The cattle feeding sector in North America, but certainly specifically here in Alberta, has been in a negative margin situation for about 14 months now,” Wasko said.

“The losses have been substantial — they’ve been, at times, record large on a per head basis . . . as high as $500 to $600 per head.”

[blackpowder]

Forage needs to think a Canadian Cow Board would save us.
Where there's cows theres bullshit.

[tweety]

Its a good thing steak and hamburger in the grocery store will reflect the production pricing.

[SASKFARMER3]

This is Political and Sask should get on board and get them to move here.

NDP definition is Disaster! Look it up its in the Oxford dictionary.

Picture of Allen Tommy and Roy!

[boarderbloke]

forage, who's Neil Young ?

[SASKFARMER3]

Follow the money lots of Investors were Oil guys and when your not making money on oil you don't need cattle to offset that profit.

Always follow the money.

[grassfarmer]

Western had 7% of AB/SK feedlot capacity so not sure how big an impact this will have. The Canadian herd has shrunk @25% from its post BSE peak so its likely a necessary realignment.

[SASKFARMER3]

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.