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PAGE A2. THE CITIZEN, THURSDAY, MARCH 16, 2006.
Agriculture 2006
Breeders big
losers with BSE
By Bonnie Gropp
Citizen editor
Fred Armstrong of Auburn
considers himself lucky.
"I always wanted to farm. This is
what I love, what I love to do."
But recent years for the 63-year-
old dairy producer, who had hoped
one day to perhaps hand the farm
down to a sixth generation, have had
him wondering occasionally
whether it's worth it.
When the BSE crisis hit in 2003
the obvious impact it had on the beef
industry, meant the harmful effect on
other sectors were often not
considered the way they might have
been. Armstrong, who started
farming right out of school runs a
Jersey and cash crop operation.
While he has 70 milking cows, a
significant portion of his business
was in the sale of breeding stock to
the United States. When the border
closed, it essentially shut him, and
others like him, down. "My sales on
breeding stock dropped $100,000
that year."
That's a loss on animals that he
had fed and housed making the total
even greater. And Armstrong was in
a better position than some of his
counterparts. "The milk cheque
definitely helped carry us through,
helping to pay the mortgage, repairs,
taxes, things like that. At that time,
however, I did have to re-finance
some things and sell off some equity
to keep going."
It was a reality of the crisis that
took some time for the public to
discover. Yet its effects were
crippling. "People didn't make the
connection at the time. Yet, those
folks who focussed just on selling
breeding stock, it hit them as hard as
anybody. That was their livelihood
and it just stopped."
The United States is the biggest
market for Canadian dairy animals.
"They have herds in the thousands.
We're small operators compared to
them."
The attraction for Canadian
livestock is that according to
Armstrong they are the best in the
world. "Canadian animals seem to
have the best genetics whether it's
beef, hogs, anything. We have done
an excellent job in Canada to raise
the best breeding stock."
With regards to production,
Armstrong said Canadian dairy
cattle- produce the best fat and
protein in the milk, but alsZi live
twice as long as their southern
counterparts. "We strive to breed an
excellent cow with good body
confirmation in feet and legs, that
will calf yearly and produce milk. I
have some animals that are 15 years
old."
The factory farm situation in the
States results in animals being
milked for about two years then sold
off.
The irony to this situation,
therefore, is that America's closing
of the border has been detrimental to
their dairy industry as well. "The
dairy cattle there have almost tripled
in price. The producers didn't want
the border closed. It was strictly
political, to my understanding, and
still is."
Though the border did open to
slaughter animals under the age of
30 months, this has not helped those
selling breeding stock, though they
did change the rules somewhat so
that breeders could sell embryos.
"As a result, Armstrong has more
animals than he needs or wants.
"This is one of the reasons we're
sitting with 200 head now. We're
overstocked," he said, adding that
they had to cull many of the heavier
animals. Others have been sold to
the open Canadian markets,
however, not for profit. "We
probably took half value sometimes
a lot less than that."
He does note, though that more
cattle are being sold within this
country now. "Particularly with our
Jerseys. There's a good market for
:ciseys in Quebec and in the western
pi-winces."
These markets have been
discovered by buyers and sellers in
the industry, Armstrong said. "Or we
send them to a sale in Quebec and
take whatever the market is."
As for other options, Armstrong
says they're limited. "We thought at
Continued on A5
A breed apart
While opening the border to slaughter animals under the age of 30 months may have helped
some farmers a bit, for dairy breeders like Fred Armstrong, it hasn't improved their situation in
the least. (Bonnie Gropp photo)