Livestock Outlook
The livestock business is a challenging industry. Global demand for cattle and pork has been on the decrease for several years now – not only is red meat becoming a less popular dietary choice, but disease outbreak like Swine Flu and Mad Cow disease have had a very negative PR impact on the industry at large. What’s the outlook for livestock? We took a look at the trends going forward:
Beef: It was a tough slog for crop farmers this year, as the cool summer delayed harvest right into December across many parts of the country. Now weather analysts say that trend is going to continue with a prolonged winter – and that ongoing cold could take a toll on cattle by increasing feeding costs and the number of death losses. Prediction: lower average weights and a small increase to beef and cattle prices.
Pork: Canadian farmers are getting out of hog farming in large numbers this year, due to the rapid decline in the industry, and the possibility of government assistance through loan programs like Hog Transition Program. Nonetheless, early statistics are indicating that pork production may not be as low as previously forecast, and that pork exports may even be slightly ahead of last year’s figures.
Poultry: Currently the leader in the livestock industry, chicken and egg sales remain strong and are on the increase. In part, this is due to chicken’s reputation as “the healthy meat” choice, as well as the fact that there haven’t been a lot of scares around poultry lately, with outbreaks of Bird Flu having passed out of media favour. Shell eggs have seen strong gains in the markets for egg consumption and egg products. Similarly, while year-over-year egg production numbers have increased, egg prices were significantly strengthened in 2009’s fourth quarter due to strong demand. The forecast for turkey meat has currently been downgraded from the last quarter’s figures, but with the fall still pretty far away, those numbers stand a good chance of exceeding the forecast.
Dairy: Analysts say herd sizes are on the decline and that trend will continue, although feed costs for the coming year look good and milk prices will likely rise on the world market this year. Exports are strong, particularly for skim milk products, and higher domestic consumption is predicted as well.
Grain Market Outlook
Wondering what the future holds for grain producers? Here are some of the factors that will be influencing the markets this year:
- Supply and Demand:
Market values are so inter-connected that each product ends up being influenced by other products on the market. Tie in external factors like weather conditions and harvesting issues, and you’ve got rather a precarious model upon which to make predictions. For that reason, advisors say they’ll be watching the following factors closely, to determine how the market will be shaping up for grains this year:- South American crop numbers. Set to be high this year, the amount of grain coming out of South America will influence prices and quantities world-wide.
- Energy markets will determine the demand for products like corn and canola
- Meat consumption: if it declines in the face of the economy, feed demand will decrease as well.
- And finally, some parts of the country are experiencing warm conditions thanks to El Nino. If that pattern holds, it could impact grain growth.
- Market Volatility:
Economists predict that market volatility will remain high, with world supply of grains remaining tight. If there are any disruptions – real or perceived – to the supply, prices could fluctuate dramatically.
The good news is that this could be beneficial to farmers who act quickly to follow market trends, as there will likely be some opportunities to sell crop at high profits. - The Dollar:
Whether it strengthens or weakens will have a major impact on how Canada plays on the international market. Although the economy is recovering, according to economists, it’s still hard to predict whether the dollar will remain strong into the end of the year. There are pros and cons to both possibilities as well. - Inflation:
Inflation and interest rates are very uncertain now as countries make adjustments to their budgets to deal with the economic downturn. The Bank of Canada has set Canada’s interest rates at a significant low that they promise will be maintained through to June. Economists predict that China will be pulling back on its lending pace this year, for example, and that impact on world commodity demand is unknown. Lenders are expected to be much more conservative this year, so if you need a loan, make sure you have an airtight plan.
Consumer Group Gives Canada’s Food Safety Regulations a D-
Consumer groups and activists are calling for Canada to tighten up its food safety regulations and deal with underlying issues to its food safety infrastructure that is making its response to safety issues cumbersome and inefficient.
Food safety has been a hot-button issue since 2008’s Listeria outbreak killed 22 Canadians – most of them elderly. A report issued by the Weatherill firm called for 57 reforms to the current regulations as implemented by the Canadian Food Inspection Agency. The federal government will be investing an additional $75 million to help implement further food safety measures, while the Canadian Food Inspection Agency will be hiring an additional 70 meat inspectors over a period of three years, in order to offset outbreaks like the one triggered by Maple Leaf Food products.
However, Option Consommateurs, Canada’s largest consumer group, and the Public Service Alliance of Canada, the union that represents Canada’s meat inspectors are satisfied with the upcoming changes. They say that the reforms are not happening quickly enough and that the Canadian Food Inspection Agency is not adequately funded to make all the changes at once, and in a timely fashion.
The Food Inspection Agency, on the other hand, says that huge investments have been made in order to ensure Canada’s food safety, and that a report card issued by Option Consommateur and the Public Service Alliance of Canada – in which they gave Canada a D- for its food safety measures, does not credit improvements made by the agency since the Listeria outbreak of 2008. CFIA’s executive vice-president, Bob Evans, believes that Canada’s food safety regulations are right on track: “I believe the Canadian food system and food safety system is as good as any system that exists anywhere in the world.”
Minister of Agriculture Gerry Ritz also feels that Canada’s government is taking the issue of food safety seriously, stating that the government “responded quickly and concretely” to the Listeria crisis.
The consumer group and meat inspectors’ union say that Canada’s system is fragmented with regional structures and has problems that are built right into the system’s infrastructure. Sporadic illnesses are passing under the radar, while the country needs to utilize more effective surveillance.
Nexterra Successfully Tests Syngas Conditioning Technology
Nexterra Systems Corp. announced last week that it has completed the performance testing of its new proprietary syngas conditioning technology, and that the testing was successful. The technology is a key component of Nexterra’s patented combined heat and power system (CHP System) to produce a synthetic fuel called syngas. The CHP System technology is being developed at the company’s product development centre in Kamloops.
The new conditioning technology can be used to clean and refine syngas that is derived from biomass, allowing it to be fired directly into an internal combustion engine to generate electricity, replacing natural gas. It will be packaged with the company’s biomass gasification systems and internal combustion engines for modular combined heat and power plants. The new system will achieve efficiencies of up to 65 per cent in cogeneration and more than 30 per cent in combined cycle. The company sees conditioned syngas as having future applications in biomethane production as well as other types of synthetics fuels.
Nexterra’s vice-president and chief engineer emphasized the importance of this innovation in a statement and was optimistic for the synthetic gas’s future. “Trials conducted in the fourth quarter of 2009 verify that our combined gasification and conditioning technologies produce a clean, stable and consistent grade of syngas with more than 99% removal of tars and inorganics. The resulting syngas meets and exceeds the fuel specification for internal combustion engines. We will continue optimization and refinement of the process in 2010.”
The conditioning technology is based on a process that uses thermal cracking and heat recovery in a closed loop. It is designed to be a cleaner and more reliable system than similar gas-cleaning systems, as well as lower-cost. Nexterra will continue testing the technology throughout 2010 to ensure its optimization.
The group has received funding for their conditioning technology from several sources, including Sustainable Development Technology Canada, the BC Bioenergy Network, and the National Research Council of Canada. The funding will support the development, testing and commercialization of both the conditioning technology and the CHP System. Nexterra is one of the leading suppliers of biomass gasification systems for heat and power generation in industrial capacities.
Canada’s Ag Industrialists to Look at Environmental Stewardship
Some of Canada’s top agriculture industry players will be looking at ways that environmentally-conscious farmers can start reaping rewards for their conscientious ways at the Environmental Stewardship in the Global Marketplace meeting in April.
The meeting will bring together different facets of the agriculture industry, including food companies, suppliers, conservation groups, lenders and commodity groups.
Janette McDonald, a consultant in the agricultural industry, gave an update on the meeting at Edmonton’s 2010 Farm Tech conference, saying: “In the very simplest form, we have all these primary producers in Western Canada who are doing this tremendous job of looking after the land and the natural resources. Just the progress that has been made in soil conservation in the last 25 years is amazing.
“On the other hand, we have consumers, society in general, food corporations placing more value on environmental management, sustainability, proper production practices. So if that has value to the end-user, is there a way to transfer some of that value back to the primary producer? That’s the essence of what this project is about.”
McDonald has been part of the Environmental Stewardship in the Global Marketplace project for two years now, and interviewed farmers across the nation about their views and practices when it comes to environmental stewardship and sustainability. After the interview, she spoke with a variety of commodity groups, conservation associations and agricultural companies to discuss their approach to environmental stewardship and what they saw as future opportunities for Canada’s agriculture sector. Among the groups she spoke to were Weston/Loblaws, Richardson International, Syngenta Crop Protection, the Canadian Canola Coucil, Seed Hawk and McCain Foods.
The meeting in April is the step in the project and is intended to bring the involved players together to discuss the plans going forward. Among the questions on the table, says McDonald, are: the need to create a new organization to address Canadian environmental stewardship and its impacts on agriculture, the interest level of the Canadian agricultures industry in exploring this idea, and the possibility of bringing existing groups together and building on work that they’ve already done.
According to McDonald, the first step is to bring the players together just to make sure the concept is worth talking about. After that, it’s a matter of outlining how to proceed.
Top No-Till Farming Products
If you’re a no-till kind of farmer, or you’d like to become one, it’s important to ensure that you are using the best tools for the job. No-till farming often relies heavily on precision farming techniques, which allows for tillage to be reduced as seeding and soil treatment is so localized. But there are innumerable products out there to help you get the best possible results from a no-till farming system. Below, we list some of the most popular products on the market today for no-till farming.
According to a recent poll, no-till farmers are just crazy for Precision Planting’s Keeton Seed Firmer, a planter/drill attachment that gets rave reviews for its ease-of-use and precision application. Precision Planting really started making a name for themselves last year – their 20/20 SeedSense planter monitor system is also a very popular precision tool.
Other popular (and useful) products include:
- For increased seed fertility, some of the top-ranking products on the market today include Agrotain, Avail and NutriSphere-N.
- If it’s insect protection you’re after, check out Monsanto’s YieldGard VT Triple, Dow Agrosciences and Pioneer’s Herculex, or Syngenta’s Warrior.
- For fighting fungus, some of the best products are Syngenta’s Quilt, Bayer CropScience’s Stratego, and BASF’s Headline.
- When it comes to treating seeds, you can’t go wrong with Syngenta’s CruiserMaxx or Bayer CropScience’s Poncho.
- For weed control, try Bayer CropScience’s LibertyLink with Ignite herbicide, Syngenta’s Touchdown herbicide, and Monsanto’s Genuity Roundup Ready 2 Yield or Roundup PowerMAX.
- If you’ve got residue to manage, you’ll get great results from John Deere’s 600C corn head, Spreader Inc’s The Chaff Spreader or Calmer Corn Heads’ Bt Crusher.
- In the equipment department, your no-till efforts will be greatly assisted by Kinze’s 3600 Twin-Line Planters, Great Plains Mfg.’s Yield Pro planter, or Case IH’s Early Riser planters.
- For planter and drill attachments, there’s the much-touted Keeton Seed Firmer, by Precision Planting, as mentioned above, although their other product 20/20 Airforce System is also very strong, as well as Martin Industries’ Martin-Till WA1360 floating row cleaner.
- When it comes to strip-till, be sure to check out Thurston Manufacturing’s Blu-Jet Strip-Till unit, Dawn Equipment’s Pluribus Strip-Till unite, or John Deere’s 2510S Strip-Till Residue Master.
Monsanto to Release Roundup Ready Trait
Roundup Ready genetically-modified soybeans are turning 18 soon, and retiring before it ever goes to college. The first generation trait is being made available to universities and other researchers royalty-free, according to Monsanto.
The patent on the trait expires at the end of the 2014 planting season. At the beginning of the 2015 planting season, Monsanto will be making the technology publicly available, meaning that farmers will be able to save RR1 patented varieties to use on their own farms after the expiration of the patent. (Monsanto notes: “ “It’s important to know that farmers cannot save seed until after the 2014 planting season and farmers will need to check with their seed suppliers regarding varieties developed and owned by other companies.”)
The trait was introduced by Monsanto in 1996 and quickly drew a lot of interest. The company sold the Roundup Ready soybean trait in its own seeds, and also licensed it out to around 200 independently-owned seed companies, allowing them to integrate it into their own products.
Since then, Monsanto has been working on transitioning its soybean seed products to a newer technology called Genuity Roundup Ready 2 Yield (called RR2Y). The new technology is higher-yielding and is also licensed out to independent companies. All future soybean traits that are developed by the GM giant will use the new RR2Y trait as their platform.
Monsanto has declared that it will be releasing the RR1 technology for public use in 2015 in the midst of wide scrutiny for the company’s patent rights. The RR1 genetic trait is found in more than 90 per cent of soybean crops in the U.S., including seed developed by Monsanto’s competitors. The company’s monopoly is being investigated in the U.S. by the Department of Justice. According to Monsanto’s Chief Deputy General Counsel, Scott Partridge, the company has willingly cooperated with regulators and will continue to do so: “We respect the thorough regulatory process. We believe our business practices are fair, pro-competitive and in compliance with the law.”
“Given the pace and scale of agriculture biotechnology adoption, as well as the expiration of the Roundup Ready soybean patents in 2014, we understand why regulators would want to know more about competition in modern agriculture and how products are commercialized and used. We believe an objective review will show our business and our industry to be competitive.”
The iPad
Over the winter, when the outdoor workload is lessened for farmers, can be an ideal time to start upgrading systems, catching up on the latest in tech news, and making sure your operations are cutting edge. If you’re a bit of a tech geek, maybe you’re interested in upgrading your personal operations as well. If that’s you, then chances are you’ve already started thinking about the new Apple iPad. And according to many a tech-head, you might want to think twice before investing in this product.
Public reception of this new device has been pretty mixed. While most people are keenly interested in this newest offering from Apple – the company that’s currently dominating the personal computer market – it seems like everyone is joking about the weak choice of product name and the fact that it looks like an unwieldy iPod Touch (one that is even too big to go in your pockets, it must be noted).
The pricing, as well, is getting a big thumbs-down from consumers who say that at a price range of between $500 and $900, it’s cheaper than an Apple laptop, sure, but it also lacks much of the functionality of a laptop.
The device also runs on an operating system similar to the one in iPhone, which means its processing capabilities are more in line with a PDA than a computer. The new, Apple 1 GHz A4 processor is an updated version of the StrongARM RISC chips that are found in iPhones, so while the processor will have some improved functionality, the iPad has limited, if any, multitasking capabilities.
The market may seem primed for tablet computing at the moment, with the release of netbook computers and Amazon’s Kindle reader, both of these devices are cheaper than the iPad and fulfill more specialized functions. Historically, consumers have rejected tablet-style computing software, opting instead for stable forms like laptops and, of course, hand-held, pocket-sized, devices.
If it seems like Apple bats a hundred every time, remember that this is a company that has taken a lot of risks while developing its popular software. Remember the Cube? No?
It also has a history of overpricing its products. The first 8GB iPhone to hit the market cost nearly $600. It wasn’t until the prices dropped with the second generation model (between $199 and $299) that sales skyrocketed.
Perhaps after a couple of generations-worth of modification, the iPad will be as popular as the iPhone or the iPod. Or perhaps it will simply go the way of the Cube.
McDonald’s Support Livestock Traceability
McDonald’s Canada, one of the largest buyers of Canadian beed, has declared its support of the Canadian government’s mandate to implement livestock traceability measures by 2011.
In a statement to the Manitoba Cattle Producers Association, McDonald’s Canada’s senior vice-president, Jeff Kroll said: “McDonald’s believes that a robust, national traceability system is critical to ensuring consumer confidence and building brand trust in the beef industry… McDonald’s Canada proudly supports the Canadian beef industry. Beef is at the core of our menu and with the help of our dedicated Canadian partners in the industry, we are meeting the needs of our customers by delivering safety, quality, consistency, and innovation in our varied beef offerings.”
He acknowledged that the traceability measures present an additional cost to producers but said that McDonald’s felt it was “simply the right thing to do” to protect business interests both domestically and internationally. He also said he believes that consumers will pay more for food products that they feel have extra security measures in place.
McDonald’s has been emphasizing traceability for all of its menu items since the outbreak of BSE, when consumer awareness around food production issues greatly increased and customers began demanding greater food safety.
Last year, McDonald’s Canada bought approximately 64 million pounds of Canadian beef, as well as 44 million pounds of chicken and 62 million eggs. Over two million Canadians eat at McDonald’s every day – representing about ten per cent of the population.
The mandatory livestock traceability systems have three basic components: identification of animal, identification of premise of origin, and history of animal movement. The measures are seen as essential in the protection of public health and food safety. Their implementation is intended to reduce response time should an emergency situation arise, such as a disease outbreak – therefore reducing the economic, environmental, and even social impacts of such an outbreak.
The Canadian Food Inspection Agency currently enforces identification systems for cattle, bison and sheep under the Health of Animals Regulations.
Under the new system, all livestock will be tagged with identification systems that will assign a unique identification number to each animal that the animal will maintain for the entirety of its life. The identification numbers will be distributed through authorized tag dealers.
Cystic Ovaries the Leading Cause of Infertility in Cows
For any dairy operation, reproduction is one of the most important considerations. For this reason, any improvement you make to your reproductive capacity is an improvement you make to the dairy farm in general.
Reproductive failure can be attributed to many different causes, but one of the most primary causes of reproductive failure is ovarian follicular cysts. In cows, ovarian cysts can sometimes be detected by the exhibition of the following symptoms:
- Over-expression of heat
- Irregular cycle
- Infertility
To treat the cyst, ask your vet about GnRH, which is effective in many cases.
According to a 2007 study, cystic ovaries in dairy cattle were reported by almost 70 per cent of the respondents. In the States alone, it is predicted that at least one million dairy cows are affected by cystic ovaries each year.
In the most common cases, the condition occurs when a follicle persists for more than 10 days and expands to more than two centimetres in diameter. In these cases, GnRH is helpful because it helps the ovary to rid the follicle – allowing a new one to replace it and activating the estrus process.
GnRH serves two important functions when used for treating ovarian cysts: it causes the pituitary gland to secrete luteinizing hormone and it stimulates the production of follicle stimulation hormone (FSH). Both these hormones together bring on ovulation.
In addition to treating the cystic ovaries in accordance with your vet’s instructions, you should also take the following steps to ensure herd health – another important factor in raising conception rates:
- Keep a vigilant eye on cow health. Sick or stressed cows are difficult to breed. Coccidiosis and BRD are two conditions that commonly affect stressed cows.
- Minimize overcrowding. Overcrowding is one of the leading causes of stress to cows. Cows require adequate space in the stall to ensure that they get proper rest.
To optimize your reproductive performance, keep the following two things in mind:
- If you’re using an A.I. company, remember that you can ask them about bulls that are intended for improved conception rates.
- Track cow productivity cycles. One missed heat cycle has a cost to producers of approximately $30. A missed pregnancy constitutes a loss of almost $500. Make sure that your breeding program is thorough and that you keep detailed records.















