Younger Investment Driving up Confidence in Cattle Sector
Cattle producers are optimistic heading into 2013, and one sign of that optimism is increased investment from younger producers.
"I see some young guys going out and buying cows and heifers, and I think there's an opportunity to get into this industry right now, and have a number of very beneficial years economically ahead of us," said Martin Unrau, the President of the Canadian Cattlemen's Association.
"For a number of years, everybody was trying to get out of the industry because it was kind of a negative thing, now the last two or three years, we see a little bit more interest, and this fall, I see more interest than ever," he added. "I watched some of the bred cow sales and some of the prices on them. In Alberta and Saskatchewan, the prices are high. In Manitoba, not quite as high, but the calf prices are still good."
Unrau adds weather conditions in the United States will have a major impact on profitability, as the 2012 drought drove feed prices higher.
He notes the CCA is also anticipating an end to its fight over US Country of Origin Labelling laws. The World Trade Organization has ruled in Canada's favour, and has given the Americans until May 2013 to bring the legislation, which was found to discriminate against Canadian livestock, into compliance.
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