GrainsWest Fall 2020

Fall 2020 Grains West 22 Management Solutions. “In early January the problems were starting in China, but we didn’t read the tea leaves properly.” Restaurants closed virtually overnight. This market represents about 40 per cent of the end-use for Alberta’s cattle. Within weeks, Canada’s largest outbreak epicentre was the Cargill plant in High River and the JBS Brooks operation quickly followed. Workers died of coronavirus and reports of unsafe working conditions made global headlines. Cargill, which now faces a class action lawsuit, closed the plant for an unprecedented two weeks. Prices sank below $1.10 and feedlot owners began losing more than $400 per head. In addition, many had to hold onto animals, sold or not, and switch them to maintenance diets and risk additional discounts on overweight and over-fat criterion. So, in early September, as just under 100,000 cattle waited to be slaughtered, cattle feeders considered their business plans. Janice Tranberg, president and CEO of ACFA, said her members want to believe the glass is still half full as they make winter preparations. “There is still that level of cautious optimism that the market’s going to at least stay stable,” she said. “COVID did hit at the beginning of the feeder processing season. There is a backup of cattle for sure, but because of the timing, they were probably a bit on the lighter side, that gave some room for weight growth.” While many in the cattle industry thought the backlog could be caught up by October, ACFA believes spring 2021 is perhaps now a safer bet, although that date is contingent on processing facilities remaining open. The ACFA and other groups have lobbied the federal government to make changes to its aid packages, specifically AgriStability. The ACFA wants the 70 per cent reference margin upped to 85 per cent and to see the elimination of the $3 million cap for 2020, according to Kasko. “This year was totally out of our hands,” he said. “We hoped the government would prop us up to 85 per cent. All kinds of industries are getting supported through this and we’re just asking for the same kind of treatment.” As a sign Albertan concerns were heard, in May the federal and provincial governments activated AgriRecovery, creating a two-pronged 60-40 cost- shared feed offset and set-aside program for fed cattle. In Alberta, funding totalled $42 million, and feedlot owners were eligible to receive up to $2 per head per day in the program. The first half of the program, worth $12 million, quickly maxed out. While most everyone agreed the cash was nice, it was a pittance if bureaucrats genuinely wanted to stop the bleeding. “When you do the math, that won’t last long,” said Tranberg plainly. “[Feeders] might want to flood the processors, but they, in response, could completely drop the price because FEATURE At Kasko Cattle Company, owner Ryan Kasko said the pandemic contributed to the feedlot’s worst year-and-a-half ever.