I agree with them.
Evidence of meeting #53 for Agriculture and Agri-Food in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
Evidence of meeting #53 for Agriculture and Agri-Food in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
Noon
President, Manitoba Cattle Producers Association
—but when you look at the facts, for some reason the Americans get some of these markets and we don't.
So I'm not quite sure how to answer that question.
Noon
Liberal
Paul Steckle Liberal Huron—Bruce, ON
It's political science that's keeping product out of the United States in terms of live animals over 30 months. It's not animal science that's keeping the animals out.
Would you agree?
Noon
President, Manitoba Cattle Producers Association
I think that's why I called it a “trade” issue when I did my presentation.
Noon
Liberal
Noon
Conservative
The Chair Conservative James Bezan
I have a question for you, Martin, before we wrap up here.
I represent a large cattle-producing area in the province. I'm still hearing a lot from my cow-calf ranchers that things are tough. I'm a cow-calf operator myself, and I know what I sold calves for in February.
Would you say that Manitoba versus the rest of Canada is at a disadvantage, that we're at the lower end of the prices because of our distance to the feedlots in Ontario, Alberta, and the States?
Noon
President, Manitoba Cattle Producers Association
I think the disadvantage for Manitoba is that, as a rule, it costs more to keep a cow in Manitoba than it does in Alberta or Saskatchewan. With our climate, we have snow—
Noon
President, Manitoba Cattle Producers Association
Yes.
We definitely have a problem in the cow-calf industry in Canada, not just in Manitoba. We've lost, I believe, 700 producers in the last year or year and a half. The problem is that everybody got hit so hard in the first three years of BSE--this year was a little better—and lost so much equity that they now don't have the equity to move ahead.
So the cattle industry, the cow-calf industry, is in bad shape in Canada. They're not giving up, by any means, but they are not healthy at this time.
Noon
Conservative
The Chair Conservative James Bezan
I know that in this area, especially through the spring, there were a lot of herd liquidations, guys just calling 'er quits, getting out. At auction, the sales were fairly busy. Guys had just had enough.
Noon
President, Manitoba Cattle Producers Association
Another aspect, if you would just allow me, is that the reason some of these guys are in trouble is that the older cows weren't worth too much, and the herds got older. Now we're sliding into where you can't turn around or get back into it because your cattle are old.
Noon
Conservative
The Chair Conservative James Bezan
Right.
I appreciate all of you coming in. I know that three of you didn't have that far to come, being constituents of mine—
Noon
Liberal
Wayne Easter Liberal Malpeque, PE
Just for the record, Mr. Chair, can we get that explained? I mean, I know why they held their older cows—they had to sell their younger ones in order to get any return—but perhaps we could just get on the record that explanation.
Could you take a couple of minutes, Martin, to explain why farmers sell their older cows? It is an important point.
Noon
President, Manitoba Cattle Producers Association
We call them cull cattle, in the cattle industry. The older cattle are usually from 12% to 15% of the gross income on any cattle ranch.
For example, before the BSE situation, I sold a bull, a mature cull bull, for $1,830 on May 2. In July I sold another bull, and he brought $261. When we went to the Superstore to buy groceries, it wasn't enough to pay the bill for one month.
These are the kinds of things we've been up against. This is the reason the industry is still suffering. That 12% to 15% income has turned into 2% income.
Noon
Liberal
Wayne Easter Liberal Malpeque, PE
Even in terms of herd renewal, normally what you do is you bring in younger heifers to keep the average age of your herd relatively young. The fact that you needed money meant that you had to sell your younger cattle, because your older cattle were worth nothing. As a result, the average herd age went up in Canada, and that's a problem for us now.
Noon
President, Manitoba Cattle Producers Association
Right.
I guess an easy explanation is that it used to be, when you sold the cull cow, that the cow would pay to feed the heifer to become a cow. But when you face a cash crunch temporarily in the cattle industry, you sell what you have to in order to pay the bills.
So what guys have done is they've sold the younger cattle. A heifer calf may have been worth $500, but the cow is now worth $150 or whatever. That's why the cow herds have gotten older.
Noon
Conservative
The Chair Conservative James Bezan
Thanks for that clarification; it's good to have it on the record.
Again, I appreciate all of you coming in. As I was saying, three of you are constituents who I proudly represent in Ottawa; the other two, I used to work for. It was great seeing you guys here.
We are going to suspend for lunch. Lunch is being served for committee members and staff only. For everybody else, there are plenty of restaurants in the neighbourhood.
With that, we'll suspend.