Ranches could wither and die

Trish Rainville Photo

meeting of the stakeholders
Production costs and fuel and feed prices are making it difficult for B.C. ranchers to make a living. Above: Cattle at Nicola Ranch.

Ranchers at a forum on Feb.10 in Kamloops were told that they could see even harder times ahead.

Peter Aarestad, commercial banking area manager with the Bank of Montreal in Kamloops, said that cattle prices are down from a decade ago.

“Production costs, including fuel and feed, are up by as much as four times,” says Aarestad.

“Yet with inflation, ranchers are getting less than half of what they were ten years ago.”

With cattle prices expected to recover only modestly, there are still tough times ahead for local cattlemen.

“There is no question the herd will be downsized due to the recession, says Aarestad.

“But longer term there will be cattle on the hills.”

Many ranchers have had to resort to working off their ranches in an effort to subsidize their operations.

Ranchers have used log sales, gravel or off farm work during down cycles.

“Ranchers work hard.” says B.C. Cattlemen's Association general manager Kevin Boon.

“They do not want to be subsidized.”

“Traditionally they are a very independent bunch but there is a great deal of frustration.”

Despite the frustration in the cattle industry, there is reason for optimism says Boon.

“China is a burgeoning market for our protein.”

“As well as new opportunities in Europe and Russia.”

Local rancher Dave Chutter also attended the conference as a member of the panel.

“We must define what we mean by reasonable profits and what our required level of profit is,” says Chutter.

Chutter would like to see a made-in-B.C. supply management program that would produce beef for the local domestic market instead of relying on the fluctuating, low prices of the international markets.

“This would be similar to the dairy and egg marketing boards already successful across Canada, except it would only encompass B.C.,” says Chutter.

“This would allow us to avoid government hand outs and brand our beef as a high quality premium product that many consumers are already demanding.”

Chutter says that the quality of B.C. beef is of such exceptional quality that it would not be a huge stretch for many of the producers to obtain organic certification, if that was what the market demanded.

While all participants agree that the cattle industry in B.C. is in crisis, a simple solution is not as forthcoming.

“The critics are quick to knock an idea down but they are not so quick in offering alternative solutions,” says Chutter.

“These are just ideas, but the point is we have to start somewhere because what we are doing now is clearly not working.”

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