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The Rural Voice, 2006-03, Page 37With high transportation costs, Niekerk expects Brazil to ramp up its livestock production. "They'll walk the corn out on four legs," he said. That's one reason Smithfield Foods has set up shop in Brazil. Brazil is the fourth largest producer of pork in the world and the fourth largest exporter. Pork consumption is low compared to other meats. There are 180 million head of cattle for 180 million people, most of it grass-fed. That high human population is an advantage to meat producers because Brazil can eat its way out of surpluses. Poultry production is controlled by huge co-ops with producers making about 30 cents a bird. Of course buildings are required mostly for shade, though in the intense heat there is animal discomfort. Weppler gave a view of the whole region, from Northern Mexico down to Argentina and said agriculture across the region very much depends on the local climate within a region that stretches on both sides of the equator. Northern Mexico is very similar to the southern U.S., southern Argentina is very similar to Canada and in between are tropical areas with totally different conditions. The areas of Mexico where cattle are fed are very dry and shade has to be created for the cattle. A Mexican feedlot would bring in 500-600 pound animals and feed them a ratio of 60 per cent grain, 40 per cent forage for 90-150 days. There are some very modern feedlots there, Weppler said. Cost of production is about 84 cents a pound. The price recently for live weight was $1.08 or $1.10 for a hot carcass. The cattle fed are mostly bulls because it's more important to produce volume than better quality beef for high-end restaurants. In Mexico the cow -calf operations are typically in the tropical parts and the south. Cattle are generally dual purpose animals with a lot of zebu in them (zebu is a breed that originated in India). Farmers may actually leave the calf on the cow to grow it, but make sure the calf doesn't get all the milk so that milk can be sold for cheese or powdered milk. One milking parlour Weppler saw was just a shed in the middle of the pasture, but many other cattle are milked by hand. Prior to Christmas, calves were selling for the equivalent of $ l .07Cdn for a 400 -pound calf while milk sold for 13 cents a pound. Cull cows sold for 58-73 cents a pound. In Brazil, "wherever they can find a flat spot they create a feedlot," Weppler said. A feedlot is generally surrounded by cow -calf operators feeding into the feedlot. There are some Charolais cattle in Brazil. There are three ways that stocker cattle might be handled. A 400 - pound calf can be sold to someone Brazilian farmers have been creating new farmland in the Mato Grosso (shaded area). who puts it on pasture and raises it to 1,000 pounds before sending it to a feedlot. The calf could be put on a good pasture, then finished with grain. The producer might also start the calf on pasture then put it in a corral in the field for the last 45-60 days and finish it as if in a feedlot. It costs about 28-42 cents a pound to put on gain with producers getting a price of $1.08Cdn. A problem for producers in these tropical countries is parasites, Weppler said. "It's a real problem. It will kill an animal." Farmers run cattle through a tick bath, a deep channel they have to swim their way out of. The chemicals are very potent. Many wouldn't be allowed to be used in North America. Conditions in Argentina are more like Canada, Weppler said. Farms have mostly British breeds or British crosses because Argentina has a lower tariff arrangement with Britain if certain conditions are met. Cow - calf operators are concentrated in the north of Argentina where it's more humid and tropical. Farther south in the pampas area alfalfa, corn and soybeans are produced and the livestock production is centred on fattening cattle and dairy. In the much colder extreme south, sheep are pastured. Livestock producers face a strong competition from cash crops for land and cattle are moving to less productive areas. Argentina has seen a significant expansion of soybean production. Despite some of Brazil's competitive advantages, Niekerk said of the AALP tour group "80 per cent of us were glad we were farming in Ontario". Weppler agreed that despite some natural advantages that South America has, Canada has its own advantages. We worry about the rising value of our dollar compared to the U.S., he said, but most other currencies have also been rising so the situation hasn't changed with most countries except the U.S. Foot and Mouth Disease (FMD) has been discovered in some areas of Brazil with the resulting loss of markets in Europe. The long-term impact of such bans can be devastating, Weppler said, noting Taiwan and the United Kingdom have never completely recovered from disease outbreaks nor had Thailand been able to win back its poultry markets after an avian flu outbreak. It's a reason to take biosecurity seriously, he said. The BSE crisis in Canada led to the creation of more packing plant capacity. While we're not using that capacity right now, it gives us the option to add value to meat before exporting it, Weppler said. "We're ahead of the U.S. in identification," he said of the Canadian Cattle Identification Agency identity tracking program. "In the global market people want to be able to trace beef back to its origin. We have to keep moving forward (in identification tagging)." One questioner also queried Weppler on the advantage Canadian genetics give our producers, pointing out that many countries can't produce quality beef at under the 20 -month age limit set 'by Japan. Weppler said Canada has leading genetics in beef, dairy and pork that give it an advantage.0 MARCH 2006 33 Ar