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Mark your calendar for the Alberta Beef Industry Conference

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The Alberta Beef Industry Conference is less than two months away, taking place at the Sheraton Red Deer Hotel from March 12-14, 2019.

The event is one of Canada’s largest beef conferences and trade shows, and provides an opportunity for the industry to come together to learn, to network and to discover the latest products and innovations.

As one of the five hosts of the conference, the Alberta Cattle Feeders’ Association is delighted to work alongside Alberta Beef Producers, Alberta Auction Markets Association, Alberta Livestock Dealers and Order Buyers Association, and the Western Stock Growers’ Association.

Once again, there is a line-up of speakers who have a wealth of industry or subject expertise to share. We look forward to hearing their insights on the industry’s most pressing issues. Here are some of the highlights:

Brad Wall: Western Canada’s Economy: Risks and Opportunities; Offense and Defense 

Brad will speak about the current political landscape and its impact on Western Canada.

Amber MacArthur and Marty Seymour: If the Future is Different Than the Past, is Your Business Ready?

Learn what your business needs to do to adapt to changing times.

Chief Clarence Louie: Cowboys & Indians – Causing Disruption to Create Economic Prosperity

Hear how he turned a bankrupt band into a multi-faceted corporation that employs hundreds of people.

Dr. Frank Mitloehner: Sustainability in Beef – the Nexus Between Productivity and Environmental Performance

A look at environmental mitigation opportunities, especially in the areas of carbon emission reductions, welfare and health.

Dr. Sylvain Charlebois: The Rise of the Conscious Carnivore? The Good, the Bad, and the Awfully Ugly

Advice on dealing with the vegetarian and vegan movements.

Marie-Noelle Desrochers: Trade Agreements That Matter for Canada

An insider’s perspective on governments’ approach to trade matters and the impact it has on the Canadian beef industry.

Brett House: Global Economic Outlook Amidst Rising Uncertainty

What’s ahead for the global economy.

Brett Stuart: Global Beef & Protein Outlook

A view of the global beef landscape, including international trade and health issues.

Brian Perillat: CanFax Market Update

The beef industry’s supply and demand dynamics, and current Canadian price trends.

Art Douglas: 2019-20 Weather Forecast

The upcoming forecast, and a discussion of the impact weather patterns have on the beef industry.

The ever-popular Danny Hooper returns as master of ceremonies, and comedian John Hastings will be entertaining us during the Taste of Alberta dinner on Wednesday evening.

Mark your calendars for another not-to-miss event – you can register here.

Will eating less meat benefit the environment?

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We hear a great deal in the media about the negative impacts of livestock production on the environment. Unfortunately, that’s only half the story, and it’s time for people to take a more balanced look at how to best feed a hungry world.

Why plant crops are not the only answer

All agricultural activities have the potential to create both negative and positive environmental impacts. 

Beef cattle contribute approximately 2.4 per cent of Canada’s greenhouse gas (GHG) emissions. But beef production also has many environmental benefits: 

Carbon sequestration: One acre of healthy grassland can store more than 80 tonnes of carbon. Figures citing beef production emissions do not take into account the approximately 1.5 billion tonnes of GHGs naturally sequestered from the atmosphere by grasslands and pasture.

Biodiversity: Although cattle production uses 33 per cent of Canada’s agricultural land, it supports biodiversity and provides 68 per cent of the Wildlife Habitat Capacity of all agricultural land in Canada (CRSB, 2016).

At-risk species: Several at-risk species, such as burrowing owls, swift fox, greater prairie chicken, sage grouse, black-tailed prairie dogs, and loggerhead shrikes prefer unbroken pasture as their habitat.

Water management: Grasslands help maintain watersheds, which in turn help prevent drought and flooding.

Erosion: Grasslands also help prevent erosion.

Regeneration of unusable land: Grasslands account for about 33 per cent of Canada’s agricultural land, but this is primarily land that is unsuitable for crop production. While beef production makes use of land that is too rocky, hilly, boggy or dry for crop production, it also naturally replenishes and adds nutrients to the soil.

Replacing beef with plant crops would require moving more land into cultivation. This will result in a loss of natural grasslands, the release of soil carbon, reduced biodiversity and the potential loss of several at-risk species. This does not take into account the environmental and financial costs involved in converting native grasslands to crops, then continually irrigating and replenishing the land to maintain those crops.

How did beef production get such a bad rap?

The oft-quoted negative impacts of beef production on the environment come primarily from two discredited sources:

‘Livestock’s Long Shadow’ was a 2006 UN study that cites a number of incorrect facts, statistics and statements. For example, it asserted that 18 per cent of global GHG emissions come from livestock. Later studies conducted by the World Resources Institute (WRI) conclude that the true figure is only about five per cent. 

‘Cowspiracy’ is a 2014 Hollywood film which likewise uses incorrect facts and statements to argue that we should move away from a meat-based diet.

Despite the fact that these two sources have been emphatically discredited and disproved, they are still incorrectly quoted as ‘proof’ that livestock production is environmentally unsustainable.

Continued improvement

Like any responsible industry, Canada’s beef producers are dedicated to improving their impact on the environment. The true facts about Canadian beef’s contribution to climate change reflect this effort:

– Canadian beef has one of the lowest carbon footprints in the world: 11.4 kg of carbon dioxide per one kg of live cattle weight.

– Cattle contribute very little to total Canadian and global GHG emissions: GHGs from cattle are 2.4 per cent of total Canadian GHG emissions and 0.04 per cent of total global GHG emissions. In Canada, 28 per cent of GHGs come from transportation.

– Canada’s beef industry reduced its GHG footprint by 14 per cent from 1981 to 2011. Canada now produces the same amount of beef with 29 per cent less breeding stock, 27 per cent less slaughter cattle, and 24 per cent less land.

Cattle feeding and the environment

In Canada, beef cattle are primarily raised on natural grassland and pasture for about 12 to 15 months, and then they are ‘finished’, often at a feedlot, using high-energy grain rations. 

85 per cent of the grain fed to livestock is unfit for human consumption and would otherwise be considered waste.

This combination of pasture followed by feedlot allows us to use less land, less water and emit fewer greenhouse gases, putting Canadian beef producers among the most efficient in the world.

Making up your mind with all the facts

Next time you’re faced with a delicious, nutritious steak, consider that beef production has many benefits for the environment, and that beef producers are working successfully to reduce any impacts that their activities do have. 

Not only is beef an important part of a healthy, balanced diet, it’s production also plays an important role in protecting our native grasslands and supporting Canadian wildlife and eco-systems.

A year of speaking up for cattle feeders

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As advocates for our province’s cattle feeders, the Alberta Cattle Feeders’ Association champions their interests, freeing them to concentrate on what they do best – producing premium beef for the world.

This past year has been another busy one. Here are the major projects the association has undertaken:

International trade

ACFA worked closely with the National Cattle Feeders’ Association to advance swift passage of several Canadian trade deals:

– Canada-United States-Mexico Agreement (CUSMA), which replaced NAFTA.

– The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which broadens access to Asian markets.

– Opening markets in China for Canadian bone-in-beef products, including the creation of a pilot project to export fresh and chilled beef to China.

– Positive changes to the Restricted Feeder Cattle Program at the Canadian Food Inspection Agency, and postponement of changes to the CFIA Manual of Procedure that would have stalled trade with China.

Labour

To address the chronic labour shortage, ACFA reached an agreement with the Alberta ministry of Labour to facilitate faster and more direct applications for temporary foreign workers, as well as relaxed education, language and income requirements.

ACFA continues to work on this crucial program.

Taxation 

Lobbying for fair taxation has been a top priority. Efforts include:

– $75,000 in funding to appeal Lethbridge County Livestock Head Tax.

– Successfully advocating to drop proposed changes to the taxation of family owned corporations.

– Seeking rebates for carbon tax paid by agriculture.

– Successfully advocating for improved allowances and deductions from federal corporate income tax for capital investment (i.e., new Accelerated Investment Incentive).

Government consultation and submissions

ACFA regularly consults with municipal and provincial governments to represent our members’ interests. This year, ACFA:

– Urged a return to full funding for veterinary schools at the universities of Calgary and Saskatchewan.

– Called for improved regulations for winter manure management.

– Consulted on an Animal Health Pathfinding initiative for Foreign Animal Disease Preparedness.

– Attended the World Organization for Animal Health (OIE) annual meeting, and met with the European vaccine bank.

– Worked with the province and Alberta Veterinary Medical Association on the dispensing of antimicrobial products.

Next week, we will explore upcoming priorities for 2019. In the meantime, we wish you a happy new year.

Test your cattle feeders knowledge

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Throughout 2018, we have provided you with insights and facts on Alberta’s cattle feeding industry. This holiday, take a few minutes to test how much you have learned from those posts.

The cattle feeders quiz has questions drawn from this year’s blogs. Some of the questions are easy, some a little trickier, and all the answers can be found in blog posts from 2018.

Answers:

1, B; 2, A; 3, B; 4, A; 5, A; 6, B; 7, C; 8, B

How did you do?

If you got all eight questions right, you’re a cattle feeder guru! If you got five to seven questions right, you’ve obviously been paying attention all year. If you got four or fewer, don’t worry — we’ll provide more great cattle feeder information throughout 2019.

Next week, we’ll be reviewing what our industry and our organization has been up to in the past year.

In the meantime, we wish you, and your friends and family a safe and happy holiday.

The rising cost of hiring temporary foreign workers puts cattle feeders at risk 

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Many of Canada’s agricultural producers rely on the Temporary Foreign Worker Program to help keep their operations running. Even though they would prefer to hire from within the domestic labour pool, there are three main reasons why it is hard for them to find local workers:

1. Farm work is often seasonal, and many Canadian candidates choose to seek year-round work elsewhere.

2. The work can be extremely physical and strenuous, which limits the number of people interested in, or able for, such work.

3. While baby boomer farmers are retiring, young people are leaving rural areas for cities, creating a labour gap.

The agricultural industry collaborated to create a Canadian Agriculture and Agri-Food Workforce Action Plan and have urged the government to adopt their recommendations for addressing the labour crisis.

Why new changes to the temporary foreign worker program will impact cattle feeders

In October 2018, the Alberta government changed the prevailing wages for temporary foreign workers.

For example, the minimum wage for the NOC (national occupational classification, or occupational group) that includes specialized livestock workers and supervisors has increased from $18.43 per hour to $21.63 or more, across the province. That’s a wage increase of more than $3 per hour.

These minimum wages are in addition to other requirements such as supplying housing for workers, so the total cost of hiring a temporary foreign worker can quickly become prohibitive for agricultural producers, even though they desperately need help.

The Agriculture Industry Labour Council of Alberta (AILCA) has written a letter to the federal and provincial governments asking for support, because it is concerned that proposed changes to two programs intended to help farmers with a worker shortage will make it even harder to access labour. You can read more about that in ‘Alberta’s agricultural leaders ask government for help with labour crisis’.

To learn more about the agricultural labour crisis, read ‘12 must-know facts about the agricultural labour shortage and why it matters to Canadians.’

Trans-Pacific trade deal opens new markets for Canada’s beef producers

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A recently ratified agreement between the government of Canada and 10 other countries will provide tariff-free and/or competitive access to key markets in the Asia-Pacific region.

On Oct. 25, The Government of Canada became the fifth member nation to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

CPTPP countries that ratified before Canada were Japan, Mexico, Singapore and New Zealand. The sixth nation to ratify the deal was Australia on 31 October. Because the provisions of the agreement specify that it enters into effect 60 days after ratification by at least 50 per cent of the signatories (six of the eleven participating countries), it will come into force on 30 December 2018.

Canada’s agricultural producers had urged the federal government to be one of the first six to ratify the agreement, allowing Canada to benefit from the early rounds of negotiations and tariff cuts. For beef producers, early ratification is considered key to securing the best terms with the growing markets in Japan, Vietnam and Malaysia.

The Japanese market in particular holds huge potential for Canadian beef producers. The CPTPP will reduce the current 36.5 per cent tariff to 27.5 per cent on Canadian fresh beef and 26 per cent on Canadian frozen beef. Further cuts will eventually bring the tariff down to nine per cent for fresh beef, while frozen beef will ultimately be completely exempt.

The National Cattle Feeders’ Association (NCFA) and Alberta Cattle Feeders’ Association (ACFA) are delighted the Canadian federal government worked so diligently to ratify the deal. The government used a rare walk-around process to pass the 14 Orders in Council required to complete the process.

“Canada is a trading nation,” Jim Carr, Minister of International Trade Diversification, said in a statement announcing the ratification. “The CPTPP will add nearly half a billion consumers to the growing list of places where Canadian businesses can compete and succeed on a level playing field. The ratification of the CPTPP represents another important step toward trade diversification to help the middle class and those working hard to join it to compete and succeed in the global marketplace.”

Why rural infrastructure must be a government priority

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Our farmers rely on rural roads and bridges  to bring in supplies and get their products to market – but a lack of government funding to maintain and rehabilitate that infrastructure is working against them.  

There are three primary types of infrastructure – municipal (local roads and bridges), provincial (secondary and primary highways) and federal (railways and ports). The problem lies at the municipal level.  Local governments do not have large tax tools like personal income tax, corporate income tax, and sales tax.  Their taxing power is limited to the property tax. In rural areas, where the population is small, municipalities simply do not have the funds required to sufficiently maintain local roads and bridges.  

More and more, business is also being conducted online, but rural areas have limited access to consistent, reliable internet. This service needs to be extended to remote areas so that agricultural producers can benefit from the reach and efficiencies of digital commerce.

How municipalities are managing

Because municipalities are not receiving the financial support they require from senior level governments, some are taking radical measures.  Examples include the ‘livestock head tax’ imposed in Lethbridge County, recategorizing intensive livestock production from ‘agricultural’ to ‘commercial’ or ‘industrial’, and creating exclusion zones where agriculture activities are not allowed.   

Solutions

1) For rural infrastructure to adequately support farmers and rural residents, provincial and federal governments must provide adequate financial support. Rural infrastructure is just as important as urban projects such as transit or green initiatives.  

2) The taxation system for farmland in Alberta has not been updated in decades. Assessment does not capture farmland used for intensive livestock production, and the values attributed to cultivated land are inaccurate because new technology has made previously less productive land more productive.

Since the 1920s and 1930s, consecutive federal and provincial governments have invested billions of dollars in irrigation including headworks, canals, and reservoirs.  If there are no roads and bridges to go along with that, we will not maximize the return on these billions of dollars of historical investment.

Without the infrastructure to get product to market, investment in agriculture will slow. But high quality, public infrastructure will stimulate investment and support agriculture.

You can read about other issues affecting Alberta’s cattle feeders in ‘Pressing cattle feeders issues discussed with politicians during Ottawa trip’. 

How regulatory changes could help trade with the U.S.

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This week, we’re exploring recent changes to federal regulations that will help ease the trade in live cattle between Canada and the United States. It’s a follow-up to an earlier post in which we explained why trade with the U.S. is so important to Canada’s beef producers.

The governments of both Canada and the U.S. have strict regulations under which cattle can be imported into their respective countries.

One particular concern is to identify where an animal was born in the event of a disease outbreak. The required inspections, paperwork and documentation can be onerous. 

The Restricted Feeder Cattle Program

The Restricted Feeder Cattle Program was implemented to simplify keeping track of feeder cattle imported from the U.S. to a feedlot in Canada and then directly to the processor. The program allows importation without test requirements on a year-round basis but with proper identification and certification. 

The movement of these feeder cattle must be direct to a feedlot registered with the program, and from there, direct to processing. Because these cattle will not be going anywhere else, it makes them much simpler to trace back, so it was possible to relax the regulations.

Why there was a need for change

Typically, more feeder cattle and finished cattle are shipped from Canada to the U.S. than in the other direction.   But in 2017, market conditions changed, and between 150,000 and 200,000 head of feeder cattle were imported into Canada from the U.S. 

The National Cattle Feeders’ Association (NCFA) recognized that changes to the Restricted Feeder Cattle Program could make the process easier and less costly for Canadian feedlot owners, and the Canadian Food Inspection Agency (CFIA) accepted NCFA’s suggestions. 

A summary of the changes

Recent changes to the Restricted Feeder Cattle Program have focused on the following areas:

1. Identification – including the information to be included on RFID tags.

2. Vehicle sealing – making allowance for rest stops for cattle en route.

3. Documentation for importation and border requirements – including allowances for shipments contained in multiple trucks.

4. Inspection at destination, approved feedlot – which can, in some cases, be completed electronically, based on a reading of the RFID tags.

For feedlot owners who are importing large numbers of feeder cattle, these changes will have a  significant impact on their costs, and their ability to justify the import of cattle from the U.S.

Maintaining a regulatory regime that protects people and animals, while simultaneously facilitating free and open trade, will promote a continued, mutually beneficial relationship. That’s why livestock producers will be watching negotiations to update the North American Free Trade Agreement closely.

You can read more about this in the post, Why free North American trade is good for the beef industry and Canada.

Myth or fact? 5 beef myths debunked

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Have you ever heard people say that eating meat is bad for our environment and our planet? In this latest Myth vs Fact post, we’re exploring some common misconceptions about beef production, so you can eat that next steak with a clear conscience.

#1 Beef cattle are a major contributor to greenhouse gas emissions

Cattle account for only 2.4 per cent of Canada’s total greenhouse gas (GHG) emissions – compared to 28 per cent for transportation. Cattle in Canada also produce some of the lowest GHGs in the world thanks to best practices developed through ongoing research. 

#2 We don’t need to eat meat – we can simply substitute it with plant proteins

Plant proteins such as beans and lentils are wholesome, nourishing foods. But it is wrong to assume that they can provide the same amount of protein per unit of food as beef. One 75 gram (2.6 ounces) serving of beef contains the same amount of protein as about two cups of beans. The plant-based protein is also not as easily digested and is missing important nutrients such as Vitamin B12 and heme iron – the type of iron most readily absorbed by the body.

Like beef, plant proteins have an important part to play in a balanced diet, but they cannot be compared, portion for portion, as a substitute.

#3 We need to eliminate beef production for the sake of the environment

Eliminating beef production would help reduce our GHG emissions by a small amount, but there are other significant reasons why pastureland is good for the environment:

    • Only 26 per cent of our native rangelands remain intact in Canada, and those would be lost without grazing animals to maintain their health. As an ecosystem, those grasslands support biodiversity and help retain water.
    • Grasslands provide important habitats for migratory birds, species at risk and other wildlife.
    • Grasslands store carbon, which would be released into the atmosphere if they were cultivated.

The relationship between cattle and wildlife is recognized by the World Wildlife Fund in its ‘2017 Annual Plowprint Report’.

#4 Feeding cattle is a waste of resources that should be used to benefit people

Cattle and other grazing animals in Canada are typically raised on land, and fed foods that might otherwise be unusable:

    • Most pastureland is unsuitable for crop production.
    • 86 per cent of all cattle feed in Canada is not fit for human consumption. 
    • Only nine per cent of cropland in Canada is used to grow grain specifically for cattle feed.
    • Food animals also play a huge role in recycling the by-products of human food production. For instance, cattle are fed the leftover grains from the production of beer, whiskey and other alcohols, which would otherwise be considered waste.

#5 Our food production is being taken over by huge, corporate factory farms

Ninety-eight per cent of Canadian farms, both large and small, are owned and operated by families. Some have been in the family for five or more generations. These farmers have been raised on the land, and they care deeply about preserving it for their own children and generations to come. 

They work hard to raise their animals in comfortable, low-stress environments. 

They understand that if animals are unhealthy or stressed they will not grow to their full potential. Even in an intensive livestock setting, healthy, well cared for animals help ensure the health of the operation.

So, next time you’re at the grocery store, wondering what to make for dinner, you won’t do better than a good serving of Canadian beef. It’s good for you, and raised ethically, sustainably and humanely.

For more in our Myth vs Fact posts, check out ‘3 feedlot myths busted’ and ‘Busted! 5 beef myths that don’t stand up to the facts’.

Why free North American trade is good for the beef industry and Canada

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Since the inception of the North American Free Trade Agreement (NAFTA), in 1994, the beef industries of Canada, U.S. and Mexico have essentially been operating in one single, North American market. In fact, the beef industry is a good example of how the original design and intent behind NAFTA has been successfully accomplished.

In this integrated market, processed beef (fresh, chilled and frozen), as well as live cattle, move across the border relatively unimpeded and entirely tariff-free. The U.S. is Canada’s largest export customer for beef, and Canada’s single largest import supplier.

Did you know?
In 2016, Canada exported 270,00 metric tonnes of beef (75 per cent of our total beef exports) to the U.S. In the same year, 63 per cent of Canada’s beef imports (186,000 metric tonnes) came from the U.S. That same year, Canada also exported 765,395 head of live cattle, primarily to the U.S. The U.S. exported 30,291 head of live cattle to Canada.

 

Why an integrated market benefits beef producers on both sides of the border

Free and open trade between Canada and the U.S. has had two significant benefits.

First, the trade in live cattle and beef products ensure that both countries have a source of supply to meet the demand within their own domestic markets. A steady, and sufficient supply of cattle is critical to the efficient operation of feedlots and beef-packing plants.

Second, the vigorous and dynamic trade in live cattle and beef products has injected a healthy dose of competition into the beef industry on both sides of the border. This has resulted in a more efficient, productive industry that is highly competitive in the global beef market. For example, beef from Canada and the U.S. is proving attractive in the Asia Pacific marketplace, despite the geographical advantages of competitive beef exporters such as Australia and New Zealand. This is because of our ability to compete on quality and price.

The way forward for the integrated market.

Cattle producers on both sides of the border are well aware of the benefits of free and open trade. The National Cattle Feeders’ Association (NCFA) has been working with counterparts in the U.S., such as the Texas Cattle Feeders’ Association (TCFA), the National Cattlemen’s Beef Association (NCBA), and the North American Meat Institute (NAMI) to address any issues that could be an impediment to the continuation of NAFTA.

One such issue concerns the maintenance of a regulatory regime that provides essential safeguards for animal health and disease prevention without imposing unnecessary economic costs or barriers to trade. The right regulatory balance is crucial.

In an upcoming blog post we will write about a set of reforms to Canadian Food Inspection Agency (CFIA) regulations that will make importing and exporting live cattle easier, less time consuming, and less costly – helping to remove impediments to trade, smooth the border, and speed the pace of commerce. Stay tuned.