Behind the Lines - January 2008

Wednesday, January 16, 2008

Times have rarely looked tougher for Canada's pork and beef producers than projections indicate for 2008. Reportage on the status of these major livestock industries begins on page 14. High feed prices, fluctuating currency, more regulations on both raising livestock and processing - it is taking a toll.

On top of all of that, markets between Canada and the United States no longer seem to be in synchronicity. A volatile Canadian dollar is not a good thing for mainstream agriculture in this country. While the prices that farmers get for the commodities they produce change almost immediately with currency fluctuations, input costs do not. Ontario Pork chairman Curtiss Littlejohn has described the result of the poor prices as "an equity avalanche."

Not surprisingly, many producers are questioning whether they have a future in the affected industries. Not only are export markets much less lucrative, the higher Canadian dollar is now attracting imports to this country. But, while many farmers will be looking at getting out, for those who want to stay in agriculture for the long term, it's worth pointing out that there are some positive signs.

John Ross, acting director of the animal industry division at Agriculture and Agri-Food Canada, notes that few countries are involved in exporting beef. Among them are the United States, Australia, Brazil, Argentina, Uruguay, India and, of course, Canada. The demand for meat will continue to rise as developing countries become more prosperous. "This speaks well," he says, about the long-term future for selling protein.

A livestock industry needs water, land, producers and packers who put all of these things together, "We have all of these things," he told Better Farming.

The basics are in place.

The challenges are a strong dollar, high feed prices and, to some degree, market access. Some of these challenges won't be with us forever, Ross says. "And even if they are, is there a way for us to adjust and go forward?" Ross remains "reasonably optimistic that the folks around here are going to figure it out."

With spring planting looming closer, soil fertility specialist Keith Reid provides some tips on how to evaluate the product claims in all the glossy literature that is filling farmers' mail boxes (see page 45). And, on page 42, agronomist Pat Lynch looks at the real reason behind today's higher-yielding crops - improved plant health.

Also on the subject of crops, you will find this month's Crop Scene Investigation challenge on page 44. As usual, the prize is a weather station.

Better Farming has been running this series for almost a year and, in November, we ran across something new. We stumped our readers! No one was able to correctly answer the question posed. You have another shot, so dust off your November issue and try again. The weather station is waiting. BF

Robert Irwin & Don Stoneman