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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
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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
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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
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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
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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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