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5 priorities for cattle feeders in 2019 

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Canada’s cattle feeders are urging politicians to consider the needs of beef producers in their platforms for the 2019 federal election. 

Agriculture and Agri-Food is a $100-billion industry that employs more than two million Canadians. The government has identified the sector as one of a few with the potential to spur economic growth.

Canada is in a prime position to benefit from increasing global demand for agricultural products, but the industry requires government support in removing constraints and barriers to growth. 

The National Cattle Feeders’ Association (NCFA) cites five urgent challenges:

Rural infrastructure

Most agricultural operations are in rural municipalities with a limited tax base to provide infrastructure. With little federal funding, some municipalities have implemented counterproductive measures, such as the livestock head tax in Lethbridge County. This is eroding the competitiveness of cattle feeding in southern Alberta.

It is crucial that the federal government identifies critical infrastructure investments in rural communities and dedicates financial resources to make them happen.

Labour shortage

A chronic labour shortage of about 60,000 workers is costing primary agriculture producers about $1.5 billion in unrealized farm cash receipts each year. 

Farmers have been forced to turn to the Temporary Foreign Worker Program to fill positions that cannot be filled by Canadians, but the process is expensive, time-consuming and complicated. 

The program’s processes need to be streamlined and clear a pathway set for permanent residency for temporary foreign workers.

Regulatory barriers

The industry is ever-evolving with new technologies and industry developments. But when regulations don’t keep pace, it hinders our ability to compete in the global marketplace.

In 2016, NCFA released a detailed study entitled The Competitiveness of the Canadian Cattle Feeding Sector: Regulatory and Policy Issues(PDF)

, Costs and Opportunities. It highlighted six areas – enhanced traceability, export regulation and impediments, veterinary drug harmonization, inspection practices, transportation and labour – where reforms could generate an additional $495 million in revenue across the beef value chain.

International market access

Canada exports 45 per cent of its beef production, and those exports are primarily to the U.S. To grow, the industry needs to expand into other markets, including the Asia-Pacific region and Europe.

Agreements such as the North American Free Trade Agreement (NAFTA), the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the Canada-EU Comprehensive and Economic Trade Agreement (CETA) should be a government priority. They will have a tremendous impact on our ability to trade effectively with these regions.

Consumer education and trust

Government and industry need to work together to ensure consumers are able to make informed choices when it comes to their food, whether the issue is environmental impact, health, or production methods.

Public education should be a pillar of any new national food policy, and Canada Food Guide revisions should reflect the most recent scientific, medical and nutritional research.

In an earlier blog post, we featured John Weekes, an independent business advisor who has worked with NCFA on international trade issues. You can learn more about his work in Meet the international trade expert who is helping support the beef industry abroad.

4 reasons the National Beef Strategy is important to Canada

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These are interesting times in the beef industry. Our producers face numerous challenges such as declining cattle numbers across the world and consumer concerns about environmental impacts and animal welfare. At the same time, new markets, including those in Asia and the Pacific region, are providing opportunities for industry expansion.

To ensure Canada’s beef producers are positioned to make the most of these opportunities — and overcome the challenges — industry organizations, including the National Cattle Feeders’ Association, came together to develop a National Beef Strategy. 

The goal of the strategy is to position Canadian beef producers for greater profitability and growth and to support their reputation for superior quality, safety, value, innovation and sustainable production methods.

The National Beef Strategy is based on four main pillars and goals:

#1 Beef Demand

To increase the value generated from each animal by 15 per cent. Recommendations include:

  • Product development and the use of under-valued cuts to maximize competitiveness
  • Building recognition and loyalty for the Canadian Beef Advantage brand
  • Pursuit of an ambitious international trade agenda
  • Increasing consumer confidence in food safety, quality and production practices
  • Communication of the sustainability message

 

#2 Competitiveness

To reduce cost disadvantages compared to main competitors by seven per cent:

  • Working with regulators to develop a supportive regulatory environment
  • Improving access to affordable resources such as skilled labour, animal health products, feed grains and forages and new technologies
  • Maintaining and enhancing research capacity
  • Continuous improvement in sustainability and efficient use of resources

 

#3 Productivity

To increase production efficiencies by 15 per cent through improvements in the following:

  • Genetic selection
  • Research and development
  • Enhanced information flow along the production chain through information technology and verification

 

#4 Connectivity

To improve communication within the industry and connect positively with consumers, the public, government and partner industries through:

  • Development of an industry communication strategy
  • Engagement with industry partners and stakeholders
  • Engagement with government, consumers, domestic and international organizations

 

“This strategy is something all stakeholders in the industry can buy into,” said Martin Unrau, co-chair of the National Beef Strategic Planning Group. “There’s strength in numbers and by working together we will build a stronger and more robust industry capable of meeting and responding to the opportunities now and into the future.”

You can read more about some of the challenges facing cattle feeders in ‘Pressing cattle feeders issues discussed with politicians during Ottawa trip’.

3 challenges facing Alberta’s beef industry

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Beef is big business in Alberta – but like any business owners, ranchers and cattle feeders must navigate regulations, market conditions, public opinion and much more in their bid to stay competitive and profitable.

This was the subject of a recent article in Alberta Beef Magazine, in which ACFA chair Martin Zuidhoff and vice-chair Ryan Kasko were asked about cattle feeders’ new and old challenges. Read more