The fall calf run is keeping Balog Auction in Lethbridge, Alta. It’s a time where ranchers see a payday for a all their work.
“The price is the best we’ve ever had in history and that is a big plus for people that are needing to sell,” said owner Bob Balog. “Whether they sell now or a little further in the fall, we have a very good price to sell into.”
He said part of the reason many are needing to sell now is due to another drought.
“We’ve started out a little different than other years because of the dryness and the lack of pasture and water. The cattle have started to come to town a lot earlier than they normally do, probably five to six weeks earlier.”
Balog said another factor is increased production costs.
“A lot of people over the last two and three years have downsized their herds. This has happened in both Canada and the United States. We have less cattle — we probably have the least amount of beef cows we’ve ever had,” said Balog. “It finally catches up with the lack of numbers.
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“Supply and demand has finally kicked in the way its supposed to: there aren’t near as many cattle, the feedlot pens need to be filled, and the price goes up.”
Brenna Grant, executive director with Canfax, said the latest Statistics Canada numbers show a consistent decline in cattle.
“They showed beef cattle across Canada down 1.5 per cent from last year and they are now down 3.5 percent from 2020 — which would be considered a pre-drought period — and that decline really being driven by the dry conditions over the last several years,” she said.
Grant added the current price for a 550 pound (250 kilogram) calf is anywhere from $3.60 to $3.90 per pound, a big jump from the last record high.
“We peaked out in 2015 around $3.30, so we have been above — basically all summer — our 2015 peaks and we have seen lots of stability at those price ranges this summer.”
But Balog added its a pay day long overdue for many ranchers.
“Yes, its wonderful, the price is up, but most of its already spent in the last three years to offset for the tremendous amount of input, like purchasing feed and all the things you need to keep a cow herd,” he said.
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