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Stocker prices soaring

U.S. takes important step to open border to live cattle

Anticipating the opening of the U.S. border to live cattle in March, buyers have pushed up stocker prices to almost record highs at some auction barns in Ontario.

The United States Department of Agriculture (USDA) took an important step in opening the border to live cattle, live sheep and carcasses from Canada. On Halloween day, it announced an amendment to its bovine spongiform encephalopathy (BSE) regulations and the adoption of some recommendations of the World Organization for Animal Health, called the OIE. The proposed rule change rates Canada as minimal risk, allowing the border to open to live cattle under 30 months of age, and sheep and goats 12 months of age and under.

The week of the announcement cattlemen were anticipating the news, says John Newman, member of the Ontario Cattlemen’s Association executive. With American cow inventories low and beef prices setting record highs, stocker prices at the Keady sale barn, south of Owen Sound, went through the roof, recording the highest prices in Ontario. One steer, between 600 pounds and 700 pounds sold for $1.44 per pound. A heifer in the 500 to 600 pound range sold for $1.37 per pound.

Prices at Cookstown were lower, but high enough to make the trip more than worthwhile. High price of the top selling 600 to 700 pound steer was $1.26 while the high for a 500 pound to 600 pound heifer was $1.29.

In the next stage, comments on the rule change will be received by the USDA until January 5, 2004. After an examination of comments, the USDA will make a decision on the border. Newman expects the border to open the end of March, but the process could be slowed down by opposition in the U.S. "This is all about money," he said. He expects some farm state senators to go to bat for constituents who would like to keep beef prices at record highs.