Alltech, the U.S.-based firm that has wholly owned Masterfeeds since 2015, announced Tuesday it will merge Masterfeeds’ 15 Canadian feed mills into a new North American animal feed business that also includes Alltech’s Hubbard Feeds and its 18 U.S. mills, plus ADM’s 11 U.S. mills.

“We’re evolving with purpose to offer an industry-leading range of products and solutions for livestock, equine, backyard and leisure animals,” Alltech and ADM said in a joint statement Tuesday.

The two companies expect to close the deal and formally launch the as-yet-unnamed joint venture sometime in the first quarter of the new year. No financial details were released Tuesday.

Alltech will be the majority owner of the new firm, which they said will be “governed by a board with equal representation from each parent company.”

The deal will not include any of ADM’s Canadian locations, nor its U.S. premix and additive businesses. The Reuters news service reported Tuesday the deal will also not include ADM’s mills in Mexico.

Nor will the deal include Alltech’s Ridley block and feed ingredient businesses or specialty ingredients business. All those business units, however, are expected to serve as suppliers to the joint venture.

Masterfeeds began in 1929 as Master Feeds, the commercial feed division of Toronto Elevators Ltd., which merged into Maple Leaf Mills in 1961. U.S. ag co-operative Ag Processing Inc. (AGP) took over Masterfeeds in a joint venture with ADM in 1991, then bought full control in 2001.

Alltech became a minority partner in Masterfeeds in 2015 when it bought control of feed firm Ridley Inc., then bought full control of Masterfeeds later that year.

Masterfeeds, headquartered at London, Ont., with a regional office in Winnipeg, also holds feed analysis firm Stratford Agri Analysis and the feed and tack retail chain Cowtown, which has four stores in Saskatchewan and one at Brandon, Man. Alltech hasn’t yet said whether those businesses go into the new joint venture.

The companies also didn’t say Tuesday whether the combination will involve any job cuts or site closures, but said the new j.v. “will offer an opportunity to align their complementary North American feed strengths, including the expertise of their teams, extensive manufacturing capabilities, deep experience in nutrition science, and well-recognized and respected existing product portfolios.”

The new business, they said, “is going to be able to offer even more: broader capabilities, more products, and new innovative solutions, all delivered with the relationships and service our customers have come to expect.”

Reuters, in its report Tuesday, noted ADM has been in cost-cutting mode since early this year and its nutrition business has fallen short of revenue targets.

“ADM has historically grown its animal feed business through acquisition, but the returns have not worked out so far,” Morningstar analyst Seth Goldstein told Reuters. “It makes sense for ADM to look for these kind of partnerships that could add value to its business.”

The post Masterfeeds to enter new ADM/Alltech feed joint venture appeared first on Alberta Farmer Express.

About seven years ago, Jelinski read an Australian study that said one of the number one risk factors for spreading bovine respiratory disease was cattle sharing water bowls.

“We got to thinking, maybe there is something in the water. We’ve never looked at that,” said Jelinski, who holds the title of Alberta research chair for beef cattle health and production medicine.

Around that time, Stuart Thiessen, owner of Namaka Farms, which has a large feedlot in Alberta, opened another feedlot in Outlook, Sask.

Jelinski said the opening of the new feedlot was an opportunity to do research in a feedlot that had never had a single animal in it. The researchers could examine the bacterial populations of water bowls and see how they changed as animals were added.

Viral and bacterial effects contribute to BRD. Animals become feverish and have trouble breathing. They stop moving around as much and reduce their eating and drinking.

Even before an animal walked into the new feedlot, there was already antimicrobial resistance present.

As animals were added to the feedlot, the number of resistant genes within the water bowl increased. There was already activity in the water bowls.

“You’re looking at a biofilm, a mass of bacteria that’s growing in those watering bowls, which is a great place to grow stuff because they’re heated,” he said.

Food from the animals’ mouths also falls into the bowls.

“If you go to any feedlot and look at the watering bowls, you probably see a kind of slime at the water area interface,” said Jelinski.

“That’s full of all sorts of environmental bacteria, and the more you treat, the more you’re going to see increased resistance,” he said.

The researchers wondered if they could find the bacteria that caused bovine respiratory disease in the water bowls.

Graduate student Daniel Kos began looking for certain types of bacteria related to BRD in the water bowls, but there was certain type of bacterium that could not be isolated from the others.

“The level of BRD pathogens in that watering bowl is going to be pretty low compared to all the environmental stuff that’s growing in there,” said Jelinski.

The team spent over two years trying to develop a media to isolate those BRD bacteria from other background bacteria.

“We could never do it,” said Jelinski. “We believe they’re there.”

The significance of how much BRD is in the water bowls is unknown.

Jelinski said monitoring water bowls for bacteria was much easier and much less time consuming than giving cattle a nose swab.

The team wanted to see if antimicrobial resistance could be monitored through the water bowls.

They were able to show that when more antimicrobials were used, antimicrobial resistance increased. Furthermore, they were able to find antimicrobial resistance for certain medications.

Kos looked at all the genomics data published by the National Centre for Biotechnology Information and analyzed that data as one data set. All researchers who do genomics research and publish must load their genomics data into NCBI GenBank.

Kos was able to find one of the shortcomings of the study by looking at 4,000 files of genomic data. Most of the data was unable to say where the cattle got sick from BRD. Even a person looking at the data and finding antimicrobial resistance wouldn’t be able to know basics such as whether an animal died with BRD or if the animal entered a feedlot with it.

Jelinski said the research showed that the North American profile for BRD pathogens are different than elsewhere.

“We have more antimicrobial resistance. It’s probably related to how we raise our cattle and larger feedlots. You don’t see 20,0000 or 30,0000 head feedlots in Central Europe,” said Jelinski.

Cattle in North America are raised using more antimicrobials, and using more antimicrobials results in more antimicrobial resistance. However, low levels of antimicrobial resistance genes can show up anywhere on the planet.

“But, no doubt, the more you use, the more you’re going to end up selecting for it,” he said.

Jelinski said additional research is being done to try to show a relationship between the antimicrobial resistance in agriculture and antimicrobial resistance that develops in humans. At this point, antimicrobial resistance has not crossed over from animal to human.

In the last couple of decades, health professionals have come up with prudent use guidelines to mitigate the use of antimicrobials, said Jelinski.

“You can do that, but you can only do it to some extent. Like in a hospital, you have to use antimicrobials. In a feedlot, you have to use antimicrobials,” he said.

The researchers found that some genes were basically able to shut down the antimicrobial resistance genes.

Sometimes there is a shift in the DNA that inactivates the gene as well.

“Why is this important? It’s because if I want to figure out what your antimicrobial resistance profile is in your feedlot, and in cattle, and I want to do it phenotypically by swabbing and plating and doing that, the problem with that is that takes time. It can take days, if not longer, to come up with the results, depending on the bacteria and how slow they’re growing,” he said.

Because of the speed and accuracy of results, everyone is moving toward genomics, he said.

“The problem there is you don’t always get a perfect fit, but it’s fast and relatively good,” he said.

About 10 or 12 years ago, it cost $1,000 to sequence a genome, and now it’s $100 and continuing to drop.

The next step is to look at probe capture, which involves taking a swab, grinding up all the DNA in the swab, sequencing it and reassembling it to find out that’s in there.

Probe capture allows researchers to basically pull the genes or types of genetic sequences of interest out of the sample, while the rest is washed away.

If there is a low-level antimicrobial resistance gene in a large sample, a researcher could use it with probe capture, pull out the sample and see it. The probe capture is much more discriminating and sensitive and can target specific genes the researchers want to see.

Currently, probe capture is more expensive and more time consuming, but Jelinski expects that could come down in time.

The post Cattle water bowls hold insight into animal health, antimicrobial resistance appeared first on Alberta Farmer Express.

That’s the message in the latest documentary from the Canadian Cattle Association, which focuses on feedlots and their role in recycling food waste.

Food waste takes up space in landfills and its breakdown adds methane to the atmosphere, so there’s value in feeding it to livestock instead.

“There are concerns folks have about the environment and sustainability we want to address,” said Emma Cross, CCA manager of public and stakeholder engagement.

“We’ve found over the years that, by and large, Canadians do feel good and have positive sentiments about the Canadian beef industry.”

The documentary, called Reduce, Reuse, Ruminate, was released April 24, coinciding with Stop Food Waste Day, a campaign started in 2017 by American food service umbrella company Compass Group.

The film is the third in a five-part mini-documentary series showcasing the benefits of raising Canadian beef.

Ontario producer Mike Buis of Buis Beef provided some of the film’s source material. He said the high cost of land and lack of pasture prodded him to look for affordable alternative feed sources, whether that was grazing his cattle on corn stalks or partnering with local processors.

Buis said there were lessons to learn as an early adopter. For example, the cattle loved onions, but their meat was infused with a slight onion flavour and aroma. Carrots, which are 90 per cent water, gave the fat a slightly yellow hue and didn’t provide sufficient nutrients.

“We take our feeds very seriously. We pull samples and analyze them,” Buis said. “Then, we run them through our computer programs and make sure we have all the essential nutrients and everything we need to make sure our cattle grow properly.”

Buis has fed chopped rye, ear corn and soy hull from his operation, as well as sweet potato peelings from a fry processor, sweet corn husks and ear discards from a sweet corn processing facility and brewers’ grain from Labatt’s Brewery in London, Ont.

“In the documentary, we talk specifically about feed regulations created by the Canadian Food Inspection Agency, as well as working with nutritionists to ensure that any of these byproducts are a part of a balanced diet for cattle,” said Cross.

Ryan Kasko, a producer from Coaldale, Alta., discussed one year’s decision to feed 50,000 tonnes of raw french fries to cattle at one of his feedlots.

Bob Lowe of Bear Trap Feeders in Nanton, Alta., said he never imagined feeding dragon fruit to cattle, but now he has seen it.

“It’s perfectly edible food that, for one reason or another, consumers don’t like the look of it,” said Lowe in the documentary.

While consumers may balk at a blemished apple or a crooked carrot, visual appeal isn’t critical to cattle. Nutritional quality is the measure, said Buis. And food safety for cattle doesn’t extend to produce that falls on the floor during processing, as it would for human consumption.

“We’re not concerned if there’s a bit of dirt on it.”

Buis said the documentary shares two equally important aspects of cattle production: the essential role of cattle in the sustainable, regenerative agriculture movement and the importance of producers being open to lower-cost feed alternatives that will assure long-term beef production.

Like previous documentaries, Guardians of the Grasslands and Too Close to Home, the new Reduce, Reuse Ruminate presentation spent time on the film festival circuit and garnered feedback before local screenings were scheduled.

WILDsound Feedback Film Festival reviews said the documentary provided a balanced, hopeful approach that didn’t talk down to the audience, while giving strong graphics and information on the supply chain and upcycling solutions to combat food waste.

Many viewers noted that, while they were aware of food waste, loss and food insecurity, they hadn’t given much thought to the greenhouse gas production of food diverted to landfills.

Amanda Brodhagen, an Ontario beef producer, said the documentary highlights the multi-faceted impact of food loss and waste and how its use by cattle creates a secondary landfill benefit. She’s also a councillor in her local government, so she understands the landfill challenge.

The average person doesn’t ponder the lifespan of a landfill site, especially the sliding scale formula in which life expectancy declines as community growth accelerates.

Brodhagen said 58 per cent of food produced in Canada goes to waste, about 40 per cent of that occurring at the retail and consumer levels, so partnerships between feedlot producers and processors can divert waste, provide affordable cattle feed alternatives and lower business disposal costs.

The post The feedlot solution to food waste appeared first on Alberta Farmer Express.

“The demand for wheat in southern Alberta is pretty much non-existent,” Haley said in a May 9 interview, citing hard red wheat recently went for C$335 per tonne delivered to feedlot alley.

“I do have a few other sellers looking for wheat that’s soft white spring or a white wheat. The problem with that is nobody is feeding it really,” he added, noting any prices would be the same as barley or come with a C$5/tonne premium.

“The barley market is very, very quiet. Very little trade, zero demand, and very few sellers at the same time,” Haley explained, quoting feed prices of C$290 to C$295/tonne for May-June-July delivery.

He said something in the feed market needs to happen, especially when it comes to demand, which he stressed such will eventually happen at some point.

“But we are feeding a lot of corn,” Haley stated, expecting such to carry on for at about another month and a half.

Also, the rain Alberta recently received, especially that in the south, has been “very bearish” on the feed market,” he said.

Yet another factor that has continued to weigh on values is the amount of old crop barley and wheat still available. Haley warned that “it’s going to get interesting” when the old and new crops are available.

Exports as well remained “the fly in the ointment,” he added, suggesting prices likely won’t become as cheap as overseas buyers might think they will.

Prairie Ag Hotwire reported that feed barley prices across Western Canada were steady to lower over the week ended May 8. Saskatchewan and Manitoba were unchanged at C$5.10 to C$5.75 per bushel delivered and C$4.93 to C$5 respectively. Alberta saw a 22-cent slip across the province at C$4.75 to C$6.42/bu.

Movement over the week in feed wheat prices was mixed, according to the Hotwire. They were unchanged in Saskatchewan at C$6.60 to C$9/bu. del., but down four cents in Manitoba at C$7.65. On the whole in Alberta, prices were up 47 cents at C$6.60 to C$9.47/bu.

— Glen Hallick reports for MarketsFarm from Winnipeg

The post Feed Grain Weekly: A bearish market, especially in southern Alberta appeared first on Alberta Farmer Express.

The Livestock Population Verification Program is a response to evidence provided by complainants indicating that some operators in Lethbridge County may be exceeding the livestock numbers in their permits.

Since reviewing that evidence, the NRCB has received more feedlot complaints about potential overpopulation involving other counties.

The post Feedlot verification program ongoing appeared first on Alberta Farmer Express.

“Buyers seemed to have not bought as much corn as they have in the past. That’s created a little bit more opportunities for barley,” she said.

“But who knows how long it will continue?” Leclerc added, suggesting this is a good time to secure pricing for feed grains.

“We are definitely in a weather market right now. There has been a little bit of a scare as to how dry it is,” she continued, noting the dryness across most of the Prairies could continue or there might be sufficient rain in time for seeding.

Leclerc also pointed out that most resellers are covered off and any feed grains acquired were being picked up in the yard. For the Edmonton area she cited feed prices for barley at C$5.35 to C$5.45 per bushel picked up.

“It’s very interesting that a lot of people have covered it on paper and still need the physical product,” Leclerc stated.

As for wheat, she said its feed market has not been very active as there remained a lot of corn still available. Also, the export markets for peas and flax have been busier than usual.

Prairie Ag Hotwire reported feed barley prices were steady to higher across Western Canada as of Apr. 3. Old crop prices held firm in Manitoba at C$4.76 to C$5/bu. delivered and C$4.60 to C$5.50 in Saskatchewan. Those in Alberta added 11 cents at C$4.42 to C$6.53/bu. As for new crop pricing, Alberta ranged from C$4.52 to C$6.31/bu. delivered with Saskatchewan at C$4.70 to C$4.80.

Meanwhile, old crop feed wheat prices were mixed, according to Prairie Ag with Manitoba down 11 cents at C$7.11/bu. delivered. Saskatchewan was unchanged at C$6.85 to C$8.13/bu. while Alberta rose 14 cents at C$6.72 to C$8.44. New crop was listed as C$5.44/bu. delivered in Alberta and C$5.44 to C$8.00 in Saskatchewan.

— Glen Hallick reports for MarketsFarm from Winnipeg. 

The post Feed Grain Weekly: ‘A good time to secure pricing’ appeared first on Alberta Farmer Express.

“They have come down quite significantly over the past few months,” Peterson noted. 

Among the factors he listed as weighing on Western Canadian feed grain prices were cheaper United States corn imports, the lack of export demand for Canadian barley, the above normal temperatures across the region, and very few logistical issues so far this winter. 

He pointed out that the feedlots have been using less feed due to the warmer than expected temperatures, and that lack of cold weather has meant it’s been much easier to move grain. 

Peterson said barley and corn were currently on par at C$305 per tonne delivered into Lethbridge, Alta.  

“Corn is keeping a lid on the feed side. This will be the trend for the next few months,” he commented but noted wheat was more pricey, at C$320 to C$325/tonne delivered into feedlot alley. 

While feed barley prices were steady during the first week of January, Prairie Ag Hotwire listed those have dropped C$2.07 to C$2.68 per bushel over the last 12 months. Barley fetched C$5.51 to C$5.75/bu. delivered in Manitoba, C$5.25 to C$5.75 in Saskatchewan, and C$5.12 to C$7.08 in Alberta. 

Feed wheat on the Prairies was steady to lower in early January, with Saskatchewan getting hit with a 50-cent drop, with prices at C$7.50 to C$8.38/bu. del. Those in Manitoba were unchanged at C$7.65/bu. It was the same for Alberta at C$6.80 to C$9.39/bu. Over the last year feed wheat across the Prairies has dropped C$2.99 to C$3.35/bu. 

— Glen Hallick reports for MarketsFarm from Winnipeg.

The post Feed weekly outlook: Several factors weighing on prices  appeared first on Alberta Farmer Express.

Strength in the fed cattle market continues to support the feeder complex. Finishing feedlots were aggressive across all weight categories. Demand for grassers was limited with most feeder cattle heading straight to the feedlot. Many feedlot operators are expecting heifer retention to result in lower feeder supplies this fall. Therefore, we’re seeing finishing feedlots secure fall yearling volume with purchases of calves under 600 pounds. Secondly, there is a sharp inverse between old- and new-crop barley prices. Cattle under 650 lbs. will have the bulk of their gains with lower-priced new-crop barley. Cattle feeders are expecting a year-over-year increase in Canadian barley acreage. Buyers are making purchases on calves expecting significant downside in new-crop barley prices. Fleshier cattle were discounted accordingly.

In central Alberta, red Limousin-based steers with medium to lower flesh, on controlled weight gain, averaging just under 950 lbs., sold for $244. In the same region, Simmental blended heifers with lighter butter scaling at 925 lbs. dropped the gavel at $224. Northwest of Winnipeg, Angus-based steers weighing 855 lbs. reached up to $257 and lower-flesh tan heifers averaging 810 lbs. silenced the crowd at $247. North of Calgary, mixed heifers with medium flesh reported at 840 lbs. charted course at $236. In the Lethbridge area, red light-fleshed steers weighing 780 lbs. were quoted at $280.

In Manitoba, lower-flesh black steers weighing 700 lbs. were purchased for $293. West of Saskatoon, Simmental-based lower-flesh steers read at 740 lbs. were valued at $277 and mixed heifers averaging 690 lbs. were bid up to $260. In the Lethbridge area, black thinner steers scaled at 684 lbs. sold for $306. South of Edmonton, larger-frame Simmental blended weaned steers on light barley diet with full health records weighing 622 lbs. last touched $320.

In the Red Deer region, Angus-based steers on light grain diet with full health data weighing 520 lbs. were last quoted at $$338. East of Saskatoon, Charolais-based steers weighing just over 500 lbs. reached up to $340 and similar-quality and -weight heifers were quoted at $301. In central Alberta, tan steers scaled at 430 lbs. sold for $392 and in Manitoba, Charolais-based steers weighing 428 lbs. silenced the crowd at $382.

Larger feedlot operators were silently buying quality backgrounded low-flesh cattle direct off farm. Buyers want to know where the cattle are coming from, because weight gains are costly on cattle fed too much grain too early. There is overwhelming optimism and the feeder market is being bid up so that margins are being squeezed in the deferred positions. Cattle feeders are shrugging off economic vulnerability due to the high interest rate environment and the global banking crisis.

— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Feeder market eyes feed grain complex appeared first on Alberta Farmer Express.

The short videos, made by feedlot veterinarian Dr. Joyce Van Donkersgoed, are meant to supplement training provided by herd health veterinarians and nutritionists.

“Without well-trained and competent feedlot processors and pen riders, it is hard to effectively manage animal health and welfare, and ensure good performance of feedlot cattle,” Van Donkersgoed said in an article at the Alberta Beef Producers website.

“I’ve spent years training feedlot staff, and to me training is key to retaining good employees and ensuring they do their job well.”

The videos are available to members of the feeders’ association. For more info, go to the Alberta Cattle Feeders’ Association website.

The post New training for feedlot workers appeared first on Alberta Farmer Express.

Usually, the bulk of the volume for backgrounded cattle are animals over 850 lbs. However, this year, the higher prices have pulled more supplies to the market. There are 600-, 700-, and 800-lb. cattle on light grain ration coming on the market, especially in Alberta. Some feedlot operators that usually finish cattle are also selling fall-placed calves halfway through the feeding cycle. This environment has weighed on the feeder complex.

Live cattle futures surged higher this past week while the Canadian dollar traded in a sideways range. Despite the stronger tone in the futures, Alberta fed cattle basis levels are uncertain for the summer timeframe. This resulted in a variable price structure for 800-lb.-plus cattle. Some buyers were incorporating a risk discount due to fed cattle basis uncertainty.

North of Red Deer, larger-frame mixed steers carrying medium flesh with full health data averaging 975 lbs. dropped the gavel at $234. At the same sale, Simmental-blended heifers walking with standard butter levels weighing 850 lbs. sold for $217. Northwest of Winnipeg, Angus-blended steers with lighter flesh weighing 891 lbs. charted course at $242. Fleshier types were $4-$6 lower at this sale. Near Lethbridge, tan thin steers weighing a shade over 800 lbs. silenced the crowd at $250 and similar-quality heifers averaging 780 lbs. reached up to $223.

In central Alberta, mixed steers averaging around 690 lbs. on light barley ration with full health records were purchased for $281. Their lighter brothers weighing 614 lbs. also on light barley ration with full health data set the chart at $304. In east-central Saskatchewan. black steers weighing just over 500 lbs. touched $334 and similar-quality and -weight heifers were quoted at $265. In the Calgary area, tan mixed weaned heifers weighing 540 lbs. sold for 260.

The U.S. Department of Agriculture’s Jan. 1 cattle inventory report had the 2022 calf crop at 34.464 million head, down 701,400 head from the 2021 output. We are expecting a year-over-year decline of 150,000 head on the Canadian data which will be released later in February.

— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Larger supplies of backgrounded cattle weigh on feeder complex appeared first on Alberta Farmer Express.