COLUMN - Ruminating

By Martin Unrau

It is the first week in November and most of the cows on the cattle ranches are still out on grass and we still haven’t had much snow. The weather this fall has been great.
The federal elections in Canada and the U.S. are finally over. Agriculture wasn’t mentioned very often in our election and this was extremely disappointing. In fact, western Canada almost seemed to be part of another country during the election campaign. Politicians in Ottawa seemed to have forgotten about the importance of the livestock industry, and I’m referring to cattle and the struggling beef sector in particular.

Politicians have a very difficult job trying to balance their responsibilities and I have a great deal of respect for many of them and the efforts they put forward. But I think it is time for some people in this country to check their priority list.

Population wise, Canada is a very small country and almost every person in this country who has the ability to work, either produces, manufactures or grows a product that will be exported. From logging to drilling for oil; mining, growing grain or livestock; building cars and equipment - the list of goods produced here or raw products exported is huge.

If Canada is going to prosper it has to focus on three things - trade, Trade and TRADE with countries around the world and there should be no exceptions.

We need to learn from our competitors and copy what they’ve done. It is much like playing hockey. When you’re out there getting your butt kicked, what’s the first thing you do? You take a look at what the other team is doing and adjust accordingly. And you have to do it right away before it’s too late. Right now, two of our competitors are Australia and Brazil and they have a two goal lead after the second period . . .

Within the cattle industry, we all need to be very clear on our individual responsibilities. The cow-calf producer and feedlot operator needs to produce a product that both the domestic and global consumer wants. Then it’s up to the processor to find the markets. Up to this point, we have been doing our jobs, but without the political clout of the Canadian government, we will continue to fall short. When dealing with other countries, the government and politics plays a vital role in establishing, maintaining and enhancing healthy trade relationships.
Successful trading is not about just selling; it is about bargaining and that responsibility falls squarely on the shoulders of our government.

I can think of no better place in the world to grow beef. With our wide open spaces, clean air, abundance of water, sound genetics and knowledge base, no other country can touch us when it comes to producing top quality grain and grass-fed beef.

In fact, Manitoba and Saskatchewan are the top two provinces in the country where we can pasture cows in an economical, sustainable fashion because of our favourable, comparatively inexpensive land base. I see a real future here for the producers who can stick it out and get through these tough years.

In defense of both our provincial and federal governments, prior to the border closing in 2003, the beef industry was functioning well as part of a North American industry. But BSE changed all that.

We have entered into a new era of beef production in this country. Producers have been forced to think differently and we need our government to do the same.

It is easy to be a leader when things are going good and you are winning the battle. But no war was ever won by leaders who throw up their hands when the going gets tough.
Now, with huge global economic challenges facing the world, cattle producers can not be expected to do this alone. We need some forward thinking leadership from the capable men and women we elected to run this country.

In order for that to happen, I believe new priorities need to be established. In some cases, attitudes need adjusting to get the job done. Read more!

Ruminating

by Martin Unrau

Just like every fall, now is the time for all cow-calf producers to think about and make the toughest decision of the year - what do we do with our calves?

Do we retain ownership of our young calves by keeping and feeding them or putting them in a custom feedlot? Should we feed and finish our yearlings or do we simply sell everything off now?

The cow-calf guy isn’t the only one who has tough decisions to make. The feedlot owner is wondering whether grain prices will rise or fall and if he should buy cattle, or stick with custom feeding or do a little bit of both.

Last month it looked as though calf prices would be higher this fall than last, but with the financial difficulties in the U.S., the confidence level of both buyers and sellers in the cattle industry dropped, taking calf prices with it. Whether we like it or not, financial stability south of the border has a huge affect on the rest of the world. As I finish writing this article, the bailout bill in the U.S. has just passed but it is still too early to know how positively global economies will be affected and for how long.

The Canadian dollar sits at 92 cents. Last year in early October the dollar was at par and reached a modern-day high of $1.09 on November 7th. The modern-day low was 62.5 cents in April 2002. A big factor in the difference between calf prices now and six years ago is the value of the Canadian dollar.

So unless the market turns around, it looks like many of us are facing another year of scratching by with too little money for our calves.

For guys in the Interlake and Westlake areas, and those in the southwest, the challenge this fall is to find enough feed for the winter and the resources to pay for it. The decisions these cattlemen and women face are huge. I encourage everyone to be creative with the available feed and feed mixes and be sure to ask for advice. The MAFRI staff across the province are aware of the situation and are there to help.

The decision whether or not to buy in feed is a tough one - I know because that’s exactly what we had to do in 2003 because of drought. That purchase cost us, but the freight assistance program saved our hides (there was no program to buy feed back then either).

But I was 40 years old and my wife Roxie and I had made the decision we were staying in cows. I know from talking to guys older than myself that biting the bullet and taking on more debt when you’re 40 is an easier decision to make then when you are pushing 65.

So I guess the best advice I can give is that you have to take a look at where you are right now and make the decision that feels best for you.

There is no one right answer because every situation is different. Personally, I don’t want to see anyone who is passionate about staying in the cattle industry to be forced out. And I also don’t want to see anyone who has had enough, forced to stay in.

There are creative ways of getting around many problems, you just have to figure out what will work for you.

Start by taking a bit of a break. Try to relax your mind and say, “It is what it is. Now what do I do to fix or minimize the problem?”

Talk to positive people, the ones who always seem to figure their way out of a tough situation. Chances are they know how to think outside the box.

Take every negative you are experiencing and see if you can find a positive. For example, let’s say you don’t have enough feed for the winter but you want to stay in cows. Maybe selling off your oldest cows and buying back bred cows or heifers next year is the right option.

As disillusioned as I know many cattle producers are, I want to encourage everyone who has the will to stay in the business to take advantage of the financial options that are available.

And here at the MCPA we will continue to work on your behalf.
Because of the nature of what we do, we can’t always communicate with our membership, especially when in the middle of sensitive discussions. Often times when we are the quietest, the most progress is being made.

Remember to take time out to go to the district meeting in your area.
Hopefully I’ll see you there. Read more!