CALGARY – Cattle breeders are putting their best beef forward at the Calgary Bull Sale this week, and hoping that low oil prices could mean even higher profits for the province’s cattle industry.
Dr. Neal Church’s family has raised Herefords on Church Ranch since the sale began 115 years ago, and he believes this year could be the best on record.
“Most indicators would say the cattle market would stay strong at least through 2015 and probably beyond,” said Dr. Church. “It’s just about supply and demand and the North American cattle herd is at its lowest level probably since the 1950s. So there is a shortage of supply and still increasing world demand.”
The bull sale started to improve genetics of beef cattle herds in the 1800s, according to Doug Finseth, President of the Alberta Cattle Breeders Association.
“It’s still the place where you can get the top genetics from every operation,” said Finseth. “Everybody saves their best bulls to come to the Calgary bull sale.”
Canfax, a company that analyzes the Canadian beef industry, said 2014 was a record year.
“Prices have doubled now in the last five years in cattle – even in the last year up 70 per cent, so a huge price increase,” said Brian Perillat, manager for Canfax.
The cattle industry contributes about $2.5 billion to the province; the slowdown in energy will likely increase its contribution. Analysts suggest layoffs in the oil and gas industry could lead to more workers willing to head back to ranches; a low Canadian dollar is also a factor.
“A lot of our exports do go to the United States, so when our dollar is lower compared to theirs, it certainly helps our export market,” said Dr. Church.
Despite international restrictions on Canadian beef products since the recent case of mad cow disease (BSE) in Alberta, industry experts say there shouldn’t be a negative effect.
The Calgary Bull Sale begins with a show on Wednesday, March 4 and an auction Thursday, March 5.
READ MORE: Canada’s protocols for dealing with mad cow disease are effective, say beef industry officials
With files from Erika Tucker
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