Canadian Cattle Herd to Expand

By CnAgri2012-09-19 19:37:04 Print

Excellent pastures and abundant forage will support stabilization in the cattle sector. Inventories will modestly increase in 2013, while exports of cattle will fall. Heavier carcasses will compensate reduced slaughter resulting in a stable beef production, with trade staying flat, according to the USDA's Canadian Annual Livestock report. With the years of decline left behind, the Canadian cattle sector has now stabilised and is looking for opportunities to grow.

Excellent pasture conditions and an abundance of forage are currently the basis for such potential and will help the sector weather the following period of expected high feed prices.

Barley and wheat, both substitutes for corn in Canada, will be plentifully available, though at elevated costs. For 2013, Post forecasts a very modest increase in inventories and calf production.

More cattle are expected to stay in feedlots and be finished locally, rather than be shipped to the United States. Exports in 2013 will thus see a decline, in stark contrast with the first half of 2012.

In 2012, Canada is expected to import the same amount of beef as in 2011, while exports are estimated to decline by almost four percent.