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Manitoba's livestock industry rebounding

By: Murray McNeill

Posted: 05/24/2012 1:00 AM | Comments: 0

Marc Gallant / Winnipeg Free Press archives Higher beef and pork prices are breathing new life into Manitoba's livestock industry.

Higher beef and pork prices are helping to breathe new life into Manitoba's once-troubled livestock industry.

Statistics Canada reported Wednesday Manitoba farmers saw the biggest increase in livestock receipts in the country in the first quarter of this year.

"I think we've finally turned the corner from the impact of BSE," Cam Dahl, general manager of the Manitoba Cattle Producers Association, said in an interview.

The Statistics Canada figures show receipts were up 15.4 per cent from a year earlier -- $505.7 million versus $438.2 million in the first three months of 2011.

Leading the charge was a 17.3 per cent hike in cattle receipts -- $100.7 million versus $85.8 million. That was followed closely by a 16 per cent hike in hog receipts -- $251 million versus $216 million.

Dahl said the U.S. and Asian markets finally started accepting Canadian exports of beef again in 2011, and sales have been climbing steadily since then.

And that increase in demand has helped to push beef prices significantly higher, Dahl said, adding they're now back to roughly where they were in 2003 before the BSE (mad cow) crisis put a halt to beef exports.

Dahl said higher prices were "the principal driver" behind the first-quarter jump in cattle receipts, as there was little change in the amount of beef sold.

Statistics Canada reported in February retail beef prices in Manitoba were up 22.6 per cent from a year earlier. Higher prices were also behind the 16 per cent jump in hog receipts, according to the general manager of the Manitoba Pork Council.

Andrew Dickson said the cash price for a feeder hog in February was $154 to $155 versus $148 a year earlier.

He said hog sales were also up from a year earlier, but only by one or two per cent.

While Dahl said beef prices continue to climb, Dickson said hog prices are already headed back down due to rising pork inventories and falling prices in the United States. He said industry experts are predicting they could fall as low as $138 by next winter, "and then hopefully they'll start picking up again."

Because of high feed costs, Dickson said, the break-even price for most Manitoba hog producers is $150 to $160 a pig.

The Statistics Canada figures show Manitoba farmers also saw an 8.8 per cent spike in crop receipts in the first quarter of this year -- $944.3 million versus $868.1 million.

That, coupled with the jump in livestock sales, boosted total farm cash receipts for the quarter by 14.8 per cent to $1.6 billion from $1.4 billion. That was the third-largest provincial increase behind Alberta's 28.3 per cent and Saskatchewan's 25.4 per cent, while overall, Canada saw its receipts jump by 16.9 per cent to $14.4 billion from $12.3 billion.

Farm cash receipts include crop and livestock revenues, as well as payments from government support programs.

murray.mcneill@freepress.mb.ca

Republished from the Winnipeg Free Press print edition May 24, 2012 B5

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