Alberta's beef cow herds are continuing to shrink, bringing up the market prices, which spells good news for producers in Mountain View and Red Deer counties, experts say.Feeder cattle prices hit a record high in February of this year, up about 20 per cent higher than last year, according to Canfax market analyst Scott McKinnon.“We did see the herds shrink by about one per cent this year in Alberta too,” McKinnon added. “Heifer retention is up by two per cent as well.”As of Jan. 1, 2012, the province's beef cow herd sits at 1.66 million, which is down by 1.5 per cent from last year, according to Statistics Canada figures, but is still an overall improvement when considering the market decline in the past eight years due to drought, economic recessions and losses caused by the Bovine Spongiform Encephalopathy (BSE or “Mad Cow Disease”).Producers leaving or retiring from the industry during that eight-year period has been influencing the shrinking herds.The cattle shortage is also felt internationally, with the southern United States experiencing a drought that has affected their beef production.“There's less supply than demand, and supply is down,” said former Alberta Beef Producers chairman Darcy Davis. “That really changes the price structure. But when you have a higher price, the signal comes back. Things have been growing for the past two years now, and profit is good.”Davis added that with the market holding steady, local producers might begin to invest in expansion opportunities.“With some farmers, there's opportunity to buy grassland for their cattle,” said Davis. “There's real good optimism, and producers are going back as well. However, cattle can only expand slowly, you don't get a quick turn-around.”As for the 2012 forecast, Davis said things are looking bright for the industry, but that weather could potentially be a problem.“Moisture will be an issue this summer,” said Davis. “We need moisture for grass, and a good, big snowfall helps that, but we didn't really get that this winter.”
