McMorris: Beef Business: Should I Stay or Should I Go?

Most people in the beef business are likely asking themselves the above question these days. Making it in the beef industry has never been easy, but now it’s harder than ever. Steep rises in the Canadian dollar and feed costs have combined to challenge even the best in the business. Those who commit to giving it their best shot of being in the beef business five years from now, will have to draw on every possible advantage and most likely have to change the way they do business as well. Industry standards are changing and are sure to include age verification, a sound herd health protocol, excellent management and predictable genetics. These all work together to provide the market what it needs and will pay for. Everyone along the production system will be looking for ways to reduce cost and add value. So, what can you do as a cow/calf producer?

Know your market.
Understand what your buyers are looking for and then sell it to them. For example buyers want age verification and it doesn’t have to be onerous. In fact it is free when you buy tags through Beef Improvement Opportunities (BIO). Know your herd, every cow beyond her looks and her tag number! You need to keep records on your cows so you can sort out the good, the bad and the ugly. Herd evaluation through BIO can cost as little as $99 per year and gives you very valuable information for culling and selection purposes. The range in productivity for cows on herd evaluation in 2006 (genetic potential alone) was 180 pounds! You can’t afford to be carrying the bottom end!

Select the right bull.
Your bull decision today will affect your herd and your bottom line for years. Knowing what your buyer will pay for, what your cows bring to the equation and how you manage your herd let’s you identify what you need in a bull. Bulls that have been through the BIO evaluation program have information on calving ease, growth, maternal, and carcass characteristics. You can look at the results for all of the bulls evaluated by visiting www.biobeef.com (go to Bull Evaluation Program or BEP query). Gone are the days when just looking at the bull was good enough - you need to know what you are buying! Good genetics give a good return on investment.

Present the package.
Offer groups of calves that are age-verified, similar in genetics and weight, from a herd health program and are ready to grow. These cattle get a premium price. Healthy calves come from good herd health programs, which involve making an investment, but have a proven return. If you have not yet added in the component of genetics, now is the time to do it. Test your customer satisfaction. Follow up with the buyers of your calves. Did they perform as you expected and as they needed them to? What could you change that would ensure better value for the buyers of your calves? Make changes as needed or you might just lose that buyer to someone who does listen.

Join a value chain.
The beef industry simply must catch up to other industries with respect to information flow: what is in demand, what will gain better payment, what do you need to change. This is sure to happen eventually on an industry level but as an individual producer, you can get a jump by being part of a group that shares information forward (like genetics) and backward (like carcass information). A clear signal that a particular carcass trait is valued and paid for can then lead to changes in breeding decisions. BIO is here to help. We are owned by beef producers and in business to work with those producers that want to use information to make better business decisions. We look forward to working with you, should you decide to stay. BIO

Editor’s Note: Mike McMorris is the General Manager of the Beef Improvement Opportunities (BIO) To contact Mike McMorris, e-mail him at: mmcmorris@biobeef.com or call him by phone at: Ph: (519) 767-2665 ext. 301.

This commentary is for informational purposes only. The opinions and comments expressed herein represent the opinions of the author--they do not necessarily reflect the opinion of Farms.com. This commentary is not intended to provide individual advice to anyone. Farms.com will not be liable for any errors or omissions in the information, or for any damages or losses in any way related to this commentary.

▶ Reply to This

Replies to This Discussion

Permalink Reply by OntAG Admin on November 6, 2010 at 4:17am

Everyone should plan to attend the Farmer's Matter Event....check out the details in the OntAg Calendar.

▶ Reply

▶ Reply to Discussion

RSS

Welcome to
Ontario Agriculture

Sign Up
or Sign In

Agriculture Headlines from Farms.com Canada East News - click on title for full story

January-June Farm Cash Receipts Up 3.3%

Canadian farm cash receipts through the first two quarters of 2025 were up slightly from the same period a year earlier, thanks mainly to strong livestock returns. A Statistics Canada report Friday pegged total farm cash receipts in the January-June period at $49.6 billion, up $1.6 billion or 3.3% from the previous year. But it was livestock that led the way. Total livestock receipts rose 10.8% or $2.1 billion to $21.3 billion in the first two quarters, on account of higher prices for all livestock types except poultry. On the other hand, crop receipts were little changed – inching up $80.2 million or 0.3% - to $25.9 billion. Meanwhile, program payments declined, falling $584.5 million or 20% to $2.3 billion. While cash receipts increased for most crops in the January-June period, StatsCan said those gains were offset by reduced receipts for barley and lower liquidations of deferred crop sales in Western Canada. Total oilseed receipts through the first two quarters of 2025 wer

Alberta Harvest Advances; Yield Potential Improves

Alberta yield potential is improving as the harvest advances. Friday’s weekly crop report estimated dryland yields for major crops at 19% above the 5-year average and 11% above the 10-year average. That marks a 4-point increase in both indexes from the estimates last reported two weeks ago. Meanwhile, the harvest of major crops (spring wheat, oats, barley, canola, and peas) was pegged at about 8% complete as of Tuesday, up 6 points from a week earlier although still behind the five- and 10-year averages of 15% and 12%, respectively. The harvest of all crops was reported at 11% done as of Tuesday, versus 2% two weeks earlier. The average Alberta spring wheat yield is now estimated by the province at 50.6 bu/acre, with oats and barley at 71.8 and 69.1 bu. Canola is estimated at 39.7 bu/acre, and peas at 47 bu. “The extended period of rain and cool temperatures, which occurred while crops matured, appears to have been beneficial with multiple reports of yields surprising to the up

Pulse Market Insight #281

First StatsCan Crop Estimates for 2025 This week, StatsCan issued its first yield and production estimates for 2025 crops. These numbers are based on computer models using satellite vegetation images which, in our view, have been getting better at estimating yields. That said, these first estimates were based on the situation at the end of July; weather and crop conditions have changed considerably since then, some worse but mostly better. As combines got rolling this fall, one common theme we’ve been hearing from many parts of the prairies has been that yields are coming in better than expected. Rainfall was variable across the prairies but in all regions, 2025 was a much milder summer than the last 3-4 years when extended periods of extreme heat reduced yields. If these early positive results continue through the rest of harvest, we wouldn’t be surprised if these initial StatsCan numbers are the low-water mark for the season. For peas, StatsCan reported a yield of 36.6 bu/acre, up

Association of Equipment Manufacturers plans to lobby ahead of fall parliamentary session

Policies that help farmers adopt precision technology and maintain their right to repair are among priorities for the Association of Equipment Manufacturers ahead of the fall parliamentary session. The association says equipment manufacturers are looking to lawmakers to help them adapt in the midst of significant trade challenges and other issues like chronic labour shortages and an infrastructure deficit. Tariffs and the uncertainty surrounding them have led to higher costs for manufacturers. Aaron Wetzel, John Deere’s vice-president of production systems, said in July that the majority of their whole goods and components were exempted from tariffs under the CUSMA trade agreement. However, materials needed to make equipment may face tariffs — for instance, Canada’s 25 per cent tariffs on U.S. steel, copper and aluminum.

New traceability regulations coming for Canadian cattle ranchers

Canadian cattle producers are awaiting new federal traceability regulations following a two-year consultation process. The Canadian Food Inspection Agency (CFIA) released an “owner’s guide” based on early industry consultation. Amendments to the guide are anticipated, but have been delayed by the federal election. Rick Wright, the chief executive officer of the Livestock Markets Association of Canada, expects that it will happen in the first or second quarter of 2026, and after that, there’ll be a one-year soft launch of the enforcement of it. He says the lengthy implementation has been necessary. The regulations represent what he calls an essential emergency management tool in an era of increased global trade and travel risks. The updated regulations are designed to prepare for disease outbreaks by shortening the movement reporting window from 30 days to seven and introducing new requirements for premises identification.

More…

Badges | Report an Issue | Terms of Service