National Industry News

NCO study nears completion


Canada’s beef cattle industry hardly looks the same today as it did a decade ago. BSE, severe weather, a robust loonie, economic ups and downs and, more recently, the global recession, have reshaped the industry in ways few could have predicted.As industry moved to adapt to the changing landscape it became prudent to take a fresh look at the economic benefits of the National Check-Off (NCO), which last underwent evaluation in the early 1990s.Initiated in 2008 and due to be completed in April, the study, Evaluating the Economic Benefits from the Canadian Beef Check-Off, marks the first new analysis of the effectiveness of NCO-funded expenditures on producers’ economic well-being in a decade.Relevant, current analysis will help pinpoint the most beneficial use of NCO funds -- those producer dollars used to access matching funds from other sources to supplement national industry research, promotion and market development budgets. The NCO provides the core industry funding for the Beef Cattle Research Council responsible for industry-led research and development; the Beef Information Centre tasked with market development in Canada and the United States (U.S.); and the Canada Beef Export Federation which develops export markets in Mexico, Asia, and more recently Russia and the Middle East.The study will address key questions including the extent to which check-off funded investment has effected the industry’s competitiveness and demand for Canadian beef; producer return on investment; and optimal allocation of funds.Marlin Beever, chairman of the Canadian Beef Cattle Research, Market Development and Promotion Agency, also known as the NCO agency, felt the study was timely given the many changes and external pressures that have occurred in Canada’s beef cattle industry during the past decade.There are other benefits to the study too, he noted. The study will bring Canada in line with other major beef producing countries which routinely conduct check-off reviews and effectiveness studies.As well, the study will provide the means to measure how Canada stacks up globally compared to competitors the U.S., Australia and New Zealand, as well as to other agricultural commodities.Once completed, key findings from the study will be publicly released and the full study will be available on the Canadian Cattlemen’s Association (CCA) website.

BIXS not impacted by extension of bar code tag deadline


In the last issue of Action News, we told you about the Canadian Food Inspection Agency’s (CFIA) decision not to enforce the Jan. 1 deadline to delist bar code tags for the time being.

The decision disrupted Canadian Cattle Identification Agency (CCIA) plans to have all cattle tagged with an industry approved radio frequency identification (RFID) tag by Jan. 1.

CCIA approved RFID tags are a key platform of the Beef InfoXchange System or BIXS, but Larry Thomas, program coordinator for the CCA, doesn’t anticipate any issues arising from the CFIA decision.

“We anticipate early adopters taking part in BIXS will already be using CCIA-RFID tags in younger market cattle. We expect BIXS participants will be uploading individual animal data from calves/cattle born over the past year or two,” he said.

Thomas noted that official bar code tags have not been for sale for years and producers can only purchase RFID tags. As such, bar code tags will be found primarily in older animals coming to market. And while BIXS can accommodate cow and bull records, it will deal primarily with younger animals that producers will have already tagged with CCIA-RFID ear tags.

“Value-chain data flow on older animals is not as critical as value chain data on younger animals -- the progeny of those older animals,” he said.

Age verification is a required element for participation in BIXS. Thomas said the expectation is for all cattle enrolled in BIXS to have had their age verified via CCIA and therein have all ID referenced through a sanctioned CCIA-RFID tag.

BIXS is a national, voluntary web-based database designed to capture and exchange data linked to an individual animal’s RFID tag. The CCA spearheaded the development of BIXS as part of the Canadian Beef Advantage (CBA) program, the branding of Canadian beef for domestic and international markets.


CCIA gets funding boost to help Saskatchewan producers with age verification, traceability
On Jan. 19, the federal government and the province of Saskatchewan announced they are providing more than $1 million to the CCIA. The funding will help Saskatchewan livestock producers with age verification and other traceability initiatives and help CCIA open a satellite office in Saskatoon.

“This investment is another step towards reaching our goal of a national traceability system for livestock by 2011,” stated Saskatoon-Humboldt MP Brad Trost, who made the announcement on behalf of federal agriculture minister Gerry Ritz.


The CCA on national traceability
The CCA views traceability as a tool that will benefit the entire value chain by enabling industry to respond and recover quickly from an animal health incident. The CCA encourages producers to participate in traceability however it believes a mandatory program must be approached in a manner that does not increase the costs to the beef cattle industry, does not disrupt the speed of commerce and leads to increased market value and access.Back to top  

Cattle cycles, trends explored in new publication from Canfax Research Services


The Canadian beef industry is a cyclical and seasonal, commodity-based industry characterized by high volumes, low margins and intensive capital requirements. Producers often use the predictability of these cycles and seasonality to their advantage by expanding, selling or maintaining their herd size to correspond with the supply and demand fundamentals of the cycle.

While the duration of cattle cycle can be affected by outside forces such as drought, disease or significant economic events, a typical cattle cycle runs from 10 to 12 years. A cycle generally consists of five years of expansion, three years of liquidation, and two years of consolidation. Building on the successful Cattle Cycle books started in 1981 by Charles Gracey; Canfax Research Services has updated and expanded that publication to include discussion on overall industry trends and changing market dynamics. The 2009 edition titled “Trends, Cycles and Seasonality in the Cattle Industry,” analyzes data from 1960 to 2008 and includes discussion around cattle cycles, why they do or do not occur, historical cycles and trends as well as cycle indicators.

“Trends, Cycles and Seasonality in the Cattle Industry” is now available for $15/book (including GST and shipping). To order the 2009 edition go to www.canfax.ca for an order form.