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Our Industry

What makes Canadian beef special?

To understand this you need to take a look at the Canadian Beef Industry, so discover The Canadian Beef Advantage.

Specialization in beef cattle production has been an evolving characteristic of the Canadian cattle industry since the early 1960's, with cow/calf ranching and cattle feedlot finishing becoming two distinctly separate operations. The industry has also concentrated in the regions with natural feed and land base advantages for beef cattle production.

Income from cattle production is a major part of farm cash receipts in Canada, totalling $6.49 billion in 2006

Environment

The Government of Canada (PFRA) completed a major benchmark study in 1996, comparing the environmental conditions in Canada, the United States of America, and the European Union. This study compared agriculture sustainability (measured by energy use and soil degradation), conservation of natural areas, water quality, soil quality (measured by manure use and chemical use).

This study indicates that: Canada has a less energy-intensive agricultural production system than the USA or Europe; Canada and the USA provide a high level of protection to a greater proportion of the natural landscape than Europe; Canada and the USA rely more on sustainable natural grass pasture and less on grain-based feeding systems than Europe; Canada produces less manure per unit of agricultural land area than the USA or Europe; Canada and the United States under-apply fertilizer, which may lead to long-term soil degradation, but avoids potential water pollution; Canada applies pesticides at about 50% of the rate of the USA, the next lowest user, and 20% of the rate of France, the biggest user; a smaller percentage of the total number of mammals and birds present in Canada are considered "threatened" than in the USA or Europe, and; Canada has higher water quality in its main rivers than the USA or Europe.

In summary, these comparisons demonstrate that Canadian production systems for red meat, grains, and oilseeds create relatively less environmental risk than those of the USA and the European Union.

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Production

The nature of Canada's cow/calf ranching operations has changed significantly over time with an emphasis on intensive and specialized use of resources in beef production.

The established practice of most cow/calf ranches in Canada is to breed their cows in June and July. Calves are born in March and April of the following year. This means that the young calves, almost all of which are raised outdoors, are not subjected to cold winter weather. The calves graze with their mothers on pastures and grasslands throughout the spring, summer, and fall seasons. The average weight of calves at weaning in the fall (October or November) is about 250 kilograms, but weights can range from 160 to 320 kilograms depending on age at weaning, the genetic background of the calf, and grass condition during the summer grazing season. The lighter calves (160-225 kilograms) typically are left on pasture for an extra 120-150 days, before they enter backgrounding and high-energy feeding programs for slaughter between 18 and 24 months of age. The medium-weight calves (225-275 kilograms) at weaning are normally placed on a lower energy backgrounding feeding program before being placed on a high energy grain feeding program for slaughter between 14 and 18 months of age. The heavier calves (275-320 kilograms) are normally placed on a high energy grain feeding program after weaning for up to 225 days, and are ready for slaughter between 12 and 14 months of age. The barley-based rations that predominate in Western Canada's grain feeding operations give our beef its distinctive and desirable white fat colour. Corn and barley are fed in Central and Eastern Canada with excellent results as well.

Beef cattle producers originally based their herds on the early maturing and relatively easy finishing breeds such as Herefords and Aberdeen Angus. These breeds dominated the beef herds for many years, and these purebreds continued to dominate the commercial cow/calf ranch industry up to the early 1970's. About twenty years ago, the later maturing, faster growing, and generally more heavily muscled breeds such as Charolais, Simmental, and Limousin began to be introduced. Presently, most commercial cow herds have incorporated the best features of both types of cattle through planned cross-breeding programs. They have produced fast growing, and well muscled cattle that still exhibit high quality "beef-eating" characteristics. These cattle produce excellent quality, high yielding carcasses.

It should be noted that Canada's entire beef cattle herd are based upon Bos taurus (Hereford, Angus, Charolais, Simmental, Limousin, etc. - beef breeds) animals. There are no Bos indicus (Brahma, Cebu - draft breeds) cattle in Canada's beef herd. This is important, as research completed by the United States Department of Agriculture research (Wheeler et al, Journal of Animal Science, 1994, 72:3145-3151) indicates that "meat produced from Bos indicus cattle was less tender than meat from Bos taurus cattle, regardless of marbling score." Both the United States and Australia use Bos indicus cattle for beef production in arid regions. This analysis suggests that Canadian beef is more tender than beef from either the United States or Australia, as Canada does not include Bos indicus (draft) cattle in its beef cattle population.


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Backgrounding

Backgrounding is the process of feeding high forage (alfalfa hay and straw) feeds to increase the weight of smaller calves up to 350 kilograms. This type of animal is fed to gain weight at a relatively slow rate so that it will grow and not become too fat. This phase can occur either in the feedlot or on grass pasture. At least one half of the calves produced in Canada each year are backgrounded before they start on a high energy feedlot finishing program. After weaning, the light calves that are being backgrounded are fed forages and grain through the winter in order to gain weight at 680 grams to 1 kilogram per day. In the spring, the smaller of these calves remain on pasture or are put into feedlots to gain weight at a rate of about 1.2 to 1.4 kilograms per day. The larger calves move into feedlots and are fed high energy and high grain feed rations.


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Feedlot Finishing

Along with the trend to larger and more specialized cow/calf ranches, the Canadian cattle industry has evolved toward more specialization in the grain feeding of slaughter cattle. Feedlots range in size from a few hundred head capacity to very modern operations feeding over 40,000 animals at one time. 

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Historically, most cattle were fed in small feedlots on diversified farms that also grew feed grains and wheat for human consumption. Since the land and water resources and climate in Canada are very suitable to cattle feeding, many feedlots have become larger and more highly mechanized over the past fifteen years to specialize in cattle feeding. It is estimated that over 80% of the cattle grain fed in Canada are produced in feedlots with capacities over 1,000 head. This produces uniform and high quality beef products. It is estimated that in 2006 Canadian feedlots finished 3.4 million steers and heifers for slaughter in Canada, with another 703,000 fed in Canada for slaughter in the United States. It is expected that more of these cattle will be processed in Canada in the future.

Feedlot owners purchase calves or feeder cattle from either cow/calf ranches or backgrounding operations. Only a small portion of the calves produced in Canada are fed to slaughter weights by the original owner of the ranch where they were born.

In the feedlot industry, there are two basic types of feeding systems. The system used depends on the weight of the animals when they are placed on the finishing program. A multi-stage feeding system is used for those steers and heifers that enter the feedlot at lighter weights. These cattle are started on a higher forage-lower grain feed ration to initially gain weight at about one kilogram per day. They are fed at this level for a few weeks following which the proportion of grain in the feed ration is gradually increased to between 85% and 90%. Heavier feeder cattle begin at these high percentage grain feed rations. Cattle will gain weight at about 1.7 kilograms per day on these high energy rations. Virtually all cattle in feedlots are fed high energy grain feed rations for a minimum of 120 days. This ensures that sufficient marbling is produced, and the fat is firm and white. The average live weight at slaughter for steers is about 590 kilograms, while the average weight for heifers is about 550 kilograms. In 2006, 98% of the animals produced for slaughter in Canadian feedlots graded CANADA A, AA, AAA, and Prime - the highest quality categories within the Canadian grading system.

The Cattle Cycle

A typical cattle cycle in North America occurs about every 10 years. Larger cattle and beef supplies from the last expansion phase (1987-1995) caused cattle prices to decline in 1996. At that time, the Canadian cattle population peaked at 13.4 million head. Cattle numbers reached record highs due to closed borders (BSE) and totalled 15.1 million in 2005. In 2007, numbers have declined to 14.3 million head. The reduction in herd size following the BSE crisis has been a result of several factors. The partial opening of the USA border, which resulted in the resumption of live cattle exports to the U.S. for cattle that are under thirty months in age, has resulted in the resumption of fed and feeder cattle exports to the USA and consequently lowered Canadian inventories. Increased domestic cow slaughter also reduced the number of beef cows within the herd. Rancher's retained cull cows after the border closure in 2003 due to the fact that cow prices dropped significantly and remained low. Retaining these animals within the herd resulted in Canada's beef cow numbers reaching a record high in 2005 of 5.3 million head. With increased domestic cow slaughter in 2006 and 2007, a large number of cull cows have been removed from the herd and the beef cow herd now sits at 5 million head in 2007.

Canada has exported about a million cattle annually to the USA for the period 1997 to 2002. With the border opened in 2005 to cattle under thirty months of age, exports to the USA are projected to again reach a million head in 2007. Canada has the ability to reduce our dependence on the USA through the reduction of feeder cattle and slaughter cattle exports to the U.S. Due to Canada's record high cattle population, Canadian beef processing establishments have the ability to increase their capacity to self-sufficiency levels which would result in fewer live cattle exports to the USA. The USA will continue to be a major trading partner as they are the closest and largest market for high quality beef.

Canada also has the ability to import cattle from the United States for feeding and processing. The number of cattle imported in any given year varies considerably, depending primarily on the supply and price of feed grain in Western Canada. Canada imported 195,000 cattle from the USA in 2001. The drought in Western Canada, and the resulting higher feed prices, caused these imports to drop to 49,500 head in 2002. In most recent years, high feed and labour costs in Canada are expected to continue to limit feeder and fed cattle imports from the U.S.

There are presently 5.61 million beef breeding cows and heifers in Canada (January 1, 2007). The total population of all Canadian cattle, including dairy, was 14.3 million head in January 2007, up from 10.7 million head in January 1987 and down from 15.1 million head in 2005.

Cow Productivity

In addition to increased cattle numbers, the beef production per cow has increased significantly over the years. This is the result of increased carcass weights and increased weaning percentages (increased fertility and decreased mortality). Total beef production per cow has increased from approximately 170 kilograms in 1972 to approximately 272 kilograms in 2006. When both increased cow numbers and increased production per cow are combined, the effect on total beef production is very large.

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Beef Processing

Canada produced approximately 859,000 tonnes of beef in 1970. Total production was 1.6 million tonnes (measured in beef plus live slaughter cattle exports) in 2007, slightly below 2002 production levels of 1.7 million tonnes. This represents a 85% increase in Canada's beef production over the past 30 years. Canada's production (beef plus live slaughter cattle exports) was estimated at 1.3 and 1.5 million tonnes in 2003 and 2004

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A new international competitiveness has developed within Canada's beef and veal processing sector. Continued industry restructuring has produced newly invigorated companies with increased production capacities and efficiencies. Canadian beef and veal packers will process 3.4 million head of cattle in 2007. Companies across Canada have invested in capital for processing capacity expansion and product quality improvements. Canada's beef processing capacity reached 5.1 million head per year in 2006. Over the next ten years, exports to Asia and Mexico as expected to grow as production increases.

In addition to increasing capacity, companies are also investing in technology. Coolers are being expanded to allow for longer and more intensive carcass chilling prior to fabrication. The resultant lower muscle temperatures are extending shelf-life. In addition to better controlling temperatures throughout the beef processing and transportation system, companies are also re-evaluating their operating systems in order to reduce bacteria numbers. By incorporating comprehensive monitoring and testing regimes under the name of Hazard Analysis Critical Control Points (HACCP), Canadian beef and veal processors are producing a safer and more stable range of food products.

Canada is also developing expertise in value-added beef and veal products. We are able to further process meat products and allow our international clients to increase profits at the same time. Canada is blessed with a young, motivated, educated, and highly skilled meat-industry work force. Our production employees are among the most productive and efficient in the world. Canada's wage rates are also very competitive on an international standard. Our industry is able to take commodity boxed beef and add value through trimming, aging, forming, and portioning. Canada's value-added beef processors can deliver 100% yield "grill-ready" beef and veal products - saving you transportation charges, import taxes, high-cost labour.

Increasing capacity, new technology, a skilled work force, and a low-cost beef processing infrastructure in Canada adds up to more profit for international buyers.

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Importance of Trade

As a result of the restructuring that has occurred in the Canada/USA market, trade has increased substantially in both directions, with Canada developing a strong trade surplus in cattle and beef. The growth of trade now means that approximately 50% of our production (cattle and beef) is exported, with 80% of beef exports going to the United States. Canada is projected to export 39% of production on a net (subtracting imports) basis in 2007.

With record large cattle numbers in Canada, and modest growth potential in the Canadian market for beef products, trade becomes an important consideration. Trade can only be sustained through market growth for high quality beef products. The greatest opportunities have been identified as Japan, South Korea, Mexico, Taiwan, Hong Kong, the Peoples Republic of China, South-East Asia, and the United States.

CANADA BEEF! Delicious, healthy, nutritious, wholesome, and a unique eating experience.

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