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.”

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Although producers such as Dallas Leduc and Corey Loessin in Saskatchewan and Roger Chevraux in Alberta appreciate the fact they can now again use Syngenta and Adama products with lambda-cyhalothrin chemistry to control insect pests on cereal, pulse, corn and canola crops, they say it’s been a tense and somewhat expensive past couple of growing seasons without use of the effective and affordable insecticides.

“We got through the past couple years without any major wrecks,” says Roger Chevraux, who farms at Killam in central Alberta, east of Camrose. “We did have alternate products available, but the issue is when the registration of lambda-cy products changed we had very little notice. If we had had a serious outbreak of some pests it could have been a disaster.”

Corey Loessin, a grain, oilseed and pulse crop producer at Radisson, Sask., credited commodity organizations such as the Canada Grains Council and others for their efforts in encouraging PMRA to review current data that helped to reinstate lambda-cy registration for major crops.

And Dallas Leduc, who farms at Glentworth, says grasshoppers didn’t take a break during drought conditions in his part of southern Saskatchewan. Fortunately he was able to use another insecticide — Coragen, with the active ingredient chlorantraniliprole — which was effective but considerably more expensive than lambda-cy products.

As well, he did discover a cost-effective, made-in-Saskatchewan insecticide that also has become another tool in his crop protection toolbox.

The background

At issue for these and other Canadian farmers was a decision by Health Canada’s PMRA in mid-February 2023 to change the registration of insecticides containing lambda-cy chemistry, saying those products could no longer be used on major crops such as cereals, pulses and canola — if those crops were being used for livestock feed. Lambda-cy could still be used on crops to be processed for the human food market.

The ruling followed a routine review of pesticides in both the U.S. and Canada, which started some years before. PMRA made its determination due to concerns about insecticide residue levels found in livestock feed.

Ultimately the existing lambda-cy products, such as Matador 120 EC and Voliam Xpress from Syngenta, as well as Silencer and Zivata insecticides from Adama, remained available for food crops, with their labels adjusted accordingly.

But as the agriculture industry knows, crops seeded in April and May might very well be intended for human food products, a plan that could quickly change depending on growing season conditions, markets and crop quality at harvest. Any of the major crops could very well end up as part of some livestock ration.

Fast forward to earlier this month: after reviewing the most current research data regarding pesticide residues, PMRA reversed its decision and reinstated the use of pesticides containing lambda-cy chemistry on major crops used for both food and livestock feed.

The 2025 ruling does have a couple of limitations. Lambda-cy products can no longer be used on peach and apple crops. Lambda-cy can be used, but with reduced application, on turf grass — but it still cannot be used on any crops produced for livestock forage, whether that be grazing, greenfeed, hay or silage.

The 2023 scramble

“The PMRA ruling was made in mid-February of 2023, which didn’t leave chemical companies or farmers much time to line up alternate products for that season,” Chevraux recalls.

“And the ruling itself made zero sense. Why could the products be used on and be OK for food use but not for feed? It just didn’t add up.”

Chevraux, a past chairperson of Alberta Canola, says he doesn’t always need to use an insecticide — but in the spring of 2023 he did have a problem with cutworms on his farm.

“Fortunately we found another product that helped control cutworm, but it cost four times as much as the lambda-cy products,” he says. “We did have some flea beetles, but it wasn’t serious. We were just lucky there wasn’t an outbreak of grasshoppers or diamondback moths or some other pest that can blow in from the U.S.

“I get concerned any time we lose a tool from the toolbox, because in agriculture we need as many choices as possible in order to optimize production,” he says. “I believe PMRA needs to operate in a more timely manner. The agency needs more funding, and I don’t believe the agency has a good understanding of the agriculture industry, our modern production practices and some of the issues or challenges the industry faces in any given year.”

More responsive PMRA

Loessin says farmers in his area northwest of Saskatoon fortunately also didn’t have any major insect outbreaks during the 2023 and 2024 growing seasons, and they did have access to alternatives as needed.

“I’m glad that use of lambda-cy products on crops used for livestock feed has been reinstated,” says Loessin. “But in my view, it just corrects a mistake that shouldn’t have been made in the first place. It appears that PMRA was relying on old data when it made that ruling in 2023, even though there was new or more current data available.

“Commodity organizations actively encouraged PMRA to reconsider and review the new data which eventually led to the products being re-instated for use. The initial review started in 2017 and now it is 2025 — that’s a long review process.

“In general I believe PMRA needs to be more responsive. It took two years from 2023 until now to review the data and reinstate these insecticides. What if it had been the opposite issue — there was chemistry in use that was causing harm to human health or the environment? Would we have to wait two years for that product to be pulled from the market? I’m glad the lambda-cy products are back but I really think PMRA needs to be more nimble and more responsive in its review process.”

Good to have alternatives

Although Leduc says he was able to use alternate products to control insect pests — namely grasshoppers — on his southern Saskatchewan farm, he’s glad to see products containing lambda-cy can again be used on cereals, pulses and oilseeds for both food and feed markets.

“Coragen is a great product, but it is more expensive,” he says. “Depending on the pest and the year sometimes we have to treat whole fields or sometimes just the edges or the headlands. We went into the fall of 2024 with no subsurface moisture so I know that grasshoppers will be a problem again in 2025.”

One other grasshopper control option Leduc discovered over the past couple of years is Eco-Bran. Developed about 40 years ago by Peacock Industries of Saskatoon, it’s a bait made of wheat bran infused with carbaryl insecticide.

Leduc says his spot application system uses a hopper with a fan powered by a five-horsepower Honda engine, mounted in his pickup truck.

“We found that sometimes we just want to treat the ditches or the headlands, or just around the yard for grasshoppers,” he says. “And some of our land is up to 30 miles away. We can mount the blower in the back of the pickup truck, drive 30 minutes to the field, put the Eco-Bran in the hopper and blow the product out in the ditch or along the edge of the field and then drive home. It is a lot simpler than taking a sprayer that costs a few hundred thousand (dollars) and bouncing it along for 30 miles for a 20-minute spraying job.”

What’s more, “it works, too,” he says. “The grasshoppers eat that bran and they’re dead. It doesn’t eliminate them, but it does help to control them. It is environmentally friendly and an effective way to treat strips or patches.”

Eco-Bran comes in a 20-kg bag that retails for about $147.

A cautious approach

Manitoba Agriculture entomologist John Gavloski says the pesticide review process can sometimes result in restricted uses of popular pest management options — but it’s a safeguard against product uses where there’s evidence of potential harm to the environment or human health.

PMRA, he says, wants to make sure insecticides used at recommended label rates do not exceed maximum residue levels in our foods.

“The PMRA is taking a cautious approach when it comes to regulating the uses of lambda-cyhalothrin,” he says. “There was some concern that residuals in some foods were found to be above what is considered safe levels. Now PMRA has reviewed new information and determined that some restrictions on the use of seeds from some major field crops being used for livestock feed can be lifted.

“However, PMRA still has concerns about these crops being used as forages, so the restrictions for that end use is still in place.

“Overall it is good news for farmers, in that they can use these effective insecticides on major crops, such as canola and some cereal and pulse crops, without concerns around marketing grain from these crops.”

Gavloski notes lambda-cyhalothrin use also remains cancelled for sunflowers, which took up about 44,900 acres in his province in 2024, down 47 per cent from 2023.

“Unfortunately, there aren’t a lot of insecticide options that can be used to control lygus bug in sunflowers, but producers and the industry were able to obtain emergency registration of an alternate product that could be used,” he says — a reference to Carbine, a flonicamid product sold in Canada by FMC. That emergency registration is still in effect in Manitoba, and for confection sunflowers only, but is set to expire July 20.

“There are now efforts to obtain full registration for this product for use with sunflowers. On the positive side, this new product is very selective in controlling lygus bug and other sap-feeding pests and will not harm beneficial insects. So that is perhaps also a good outcome of this review process.”

System needs a review

Shannon Sereda, senior manager for government relations and policy with Alberta Grains, says Alberta farmers are no doubt pleased with the recent decision by PMRA — but it underscores a need to look at the whole process of how pesticides are reviewed.

“As everyone says, it is great to have another valuable tool back in the crop protection toolbox,” Sereda says. “This is what Alberta Grains was advocating for all along and it is the outcome we had hoped for.

“But it emphasizes the need for industry to work with PMRA on hopefully revising and modernizing the whole pesticide review process. The process takes years and to have restrictions like this imposed for two years creates a lot of confusion for producers.

“The decision which separates food from feed is a very complex issue for farmers. Often the decision regarding the end use of crops isn’t made until long after a pesticide has been applied. So we feel it is important in making future decisions that PMRA understands the complexity or the ramifications of their decisions and importance of timeliness. These are some of the concerns we as a sector will be looking at with the PMRA review process.”

The issue with lambda-cy also emphasizes a long-talked-about need for harmonizing the whole crop protection product registration process among like-minded jurisdictions and markets.

U.S. authorities, for example, had reviewed data and found lambda-cy products fell within food and feed safety guidelines, whereas PMRA had to conduct its own review and evaluation.

The issue with the part of the PMRA decision that restricts the use of lambda-cy on forage crops remains up in the air. However, one southern Alberta agronomist says it may not have a huge impact.

George Lubberts, owner of Complete Agronomic Services at Nobleford, north of Lethbridge, says irrigated cereal crops grown for pasture, greenfeed or silage usually aren’t treated with pesticides, although pests such as grasshoppers can be a concern for dryland farmers, especially in dry growing seasons.

“Among my clients, I believe the restrictions in pesticide use might be a concern for dairy producers looking to control alfalfa weevil in alfalfa crops, but there are other products available,” he says.

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A hidden hazard, mycotoxins can create a variety of problems, including impaired immune response, which can lead to secondary infections, compromised growth rates, reduced reproductive performance, lameness and gangrene.

Illnesses caused by mycotoxins can be difficult to identify, and treatment with antibiotics has little to no effect. Therefore, knowing the threat presented by mycotoxins, and the appropriate prevention measures to implement, are key to reducing the risk to cattle.

What are mycotoxins?

Mycotoxins are produced by certain types of fungi, including mould, and can be present in virtually all of the forages and other feedstuffs that cattle consume. Just because mould or ergot bodies can’t be seen in forage, grain or screenings is no guarantee mycotoxins aren’t present. These toxins are invisible, colourless and odourless. In addition, the presence of multiple mycotoxins within a single feed can have an increased negative impact on the animal.

The most common sources of mycotoxins that Canadian beef producers encounter are fungal diseases such as fusarium and ergot, as well as environmental, handling and storage issues that contribute to mouldy feed. The chance of mycotoxins being present in high concentrations in cattle feed can fluctuate substantially in any given year.

When are mycotoxins the biggest risk?

• If feed is suspected to be contaminated, or if conditions have been favourable for mycotoxin production;
• If mould is visibly present in a feed being fed to cattle and it makes up a large portion of the diet;
• If significant changes in production performance or health are observed in a large percentage of the herd; and/or
• If performance or health declines have no obvious cause.

What are signs of mycotoxin toxicity in beef cattle?

The symptoms of mycotoxin toxicity will vary depending on the toxins present, amount ingested, duration of exposure, animal condition and stage of production. Symptoms can include:

• Reduced feed intake: a feed reduction greater than 30 per cent should be investigated
• A decrease in growth or performance, or a failure to thrive
• Animal seems to be frequently sick, which may indicate immune suppression
• Animal does not respond when treated with antibiotics
• Animal has convulsions, muscle spasms or temporary paralysis
• Gangrene or lameness is present, especially in the animal’s ears, tail and feet, which is a sign of ergot toxicity
• Animal shows signs of heat stress, elevated breathing rate, panting or drooling
• Animal has a fever or intermittent bloody diarrhea
• There are blisters, reddening or ulcers in the mouth
• Abortion and premature births occur, or reduced lactation

How to protect cattle

Reducing the risk of mycotoxins boils down to four factors:

• awareness,
• feed testing,
• additional best practices for feed quality, and
• best practices to keep animals healthy.

Monitor for risk factors, which can fluctuate from season to season and year to year, influenced heavily by moisture conditions during growth, harvest and storage. As an example, the risk of fusarium production is increased with the presence of warm, moist conditions during the flowering stage. In contrast, ergot favours cool, moist conditions during this stage.

When producers are growing their own feed, disease monitoring must include the year before, as risk conditions and pathogen presence can carry over from one year to the next. In the case of ergot, if the fungal bodies are left to mature, they will detach from the plant head and drop to the soil, starting the cycle over again.

If the risks are high, consider diverting the crop to silage or cutting early for greenfeed before ergot bodies have developed. For grasses used for feed which may be infected, it is best to mow them sooner rather than later.

Perform regular feed tests on all feeds suspected to be contaminated. Remember, mycotoxins and mould are not the same thing. Mycotoxins may be present in a feed even if no mould is visible; therefore, it’s difficult to correlate mould or grain damage with the presence of mycotoxins. The only way to know for sure is feed testing for mycotoxin identification.

Ensuring high-quality feed also means following best practices for feed quality at harvest, storage and during feed-out. This includes proper packing to ensure oxygen exclusion for ensiled feeds, managing moisture levels for grains, byproducts and dry forages, and purchasing byproduct feeds from reputable sources, as this type of feed is at an increased risk of contamination.

Healthy animals that are not exposed to stressors are less susceptible to the impact of many mycotoxins. Follow best practices for vaccination, internal and external parasite control, biosecurity, low-stress handling, nutrition and gut health.

Eliminating the threat of mycotoxins is nearly impossible. However, producers can take preventive steps to reduce the possibility of mycotoxin contamination of their feed sources. If mycotoxins are detected in feed, certain strategies can be followed to make the feed source safer for cattle.

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He has recently seen light test-weight barley and wheat coming from various places in Western Canada being shipped to feedlots. Beusekom added the feed grains were coming from “almost everywhere in the Palliser Triangle”, the area consisting of southeastern Alberta, southern Saskatchewan and southwestern Manitoba.

“There’s some barley crop that is less than 48 pounds per bushel. The wheat is more variable. We’ve just seen some in eastern Alberta that is light and some durum on the light side in southern Alberta,” he said. “Because of downgrading due to bushel weights, there will be more (grain) entering feed markets. A lot of variance in quality, that’s for sure.”

• RELATED: Feeder cattle market stabilizes

While barley and wheat are still preferred by most feedlots, some are going back to buying corn from the United States due to the cereals’ test-weight situation and lower corn prices.

“The prices are very close and they want the consistent quality of that corn,” Beusekom said. “The grain that is here is making its way into the feedlots. It will trade at discount prices and if it’s good, there will be no issues.”

Feed grain prices in Lethbridge have rallied C$10 to C$15 per tonne at approximately C$260 since their harvest lows two weeks earlier, according to Beusekom. He said a lack of harvest pressure and rising corn and wheat prices have contributed to the rally.

Feed grain prices may continue to rise going into October while staying rangebound, according to Beusekom.

“Usually the market will peak out in mid- to the end of October and finds the trading range for the remainder of the winter months,” he said. “It’s not a change in trends. I don’t see us going straight from a down trend into an up trend, but rather we go into sideways trading. It may be a C$25 per tonne range from the low to the high.”

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Drought fears had encouraged some demand earlier in the year, but “now that those fears have been alleviated, (buyers) are starting to dig in,” according to a newsletter from Alberta grain brokers Agfinity, noting that while it is still early in the growing season “projections for this year’s crop are sound in most areas.”

Agfinity noted that new crop pricing is starting to become available at levels lower than old crop prices.

The monthly grains update from the United States Department of Agriculture’s Foreign Agricultural Service, released June 12, estimated Canadian barley production in 2024/25 at 9.6 million tonnes. That compares with the 8.9 million tonnes grown the previous year and would be about 100,000 tonnes above Agriculture and Agri-Food Canada’s current projection.

The USDA sees Canadian exports hitting 2.4 million tonnes in 2024/25, which would be up only slightly from the 2.3 million tonnes it expects for the current marketing year. However, with a larger domestic crop, the USDA forecasts Canadian domestic barley usage will rise to 7.4 million tonnes from only 6.5 million in 2023/24.

With more barley being fed domestically, the USDA expects Canadian corn imports will be cut by about a million tonnes on the year, to 2.2 million.

Corn bids in the key livestock feeding area of Lethbridge topped out at about C$308 per tonne during the week of June 3, which was down by about C$6 per tonne from the previous week, according to the provincial government’s weekly market review. Meanwhile, feed barley bids held steady, ranging from C$295 to C$300 per tonne.

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Today, the Canola Council of Canada, the Canada Grains Council and Cereals Canada “applauded” the CFIA for its new guidance on gene editing.

“This is a ground-breaking day for Canadian agriculture as the (CFIA) confirms its livestock feed guidance, marking the final piece in a series of vital policy updates that began in 2018,” said Krista Thomas, vice-president for trade policy and seed innovation with the Canada Grains Council.

“With this final piece in place, Health Canada and the CFIA have now answered longstanding calls from the seed and grain sectors for predictable, clear and consistent policies for gene edited crops.”

Krista Zuzak, director of crop protection and production at Cereals Canada, made a similar comment.

“Cereals Canada views the final piece of updated Canadian policy clarifying the regulatory pathway for gene edited plants as a positive advancement in plant breeding innovation,” she said.

“The finalized CFIA guidance on livestock feed will support research and development of new varieties that use gene editing to enhance traits such as drought, pest and disease resistance and input use efficiency, among others.”

The CFIA decision can be found online at the Government of Canada website.

The key wording is in Section 1.9 of the document, in which the CFIA states that crops developed with gene editing technology are safe for livestock.

“The CFIA’s opinion of the scientific literature is that gene editing technologies do not pose unique risks of harm to human or animal health or the environment compared to other plant breeding technologies,” the document says.

“As a result, feed ingredients derived from gene-edited plants are regulated like all other products of plant breeding under the Feeds Act and Feeds Regulations, with regulation based on the traits or characteristics of the product, regardless of its development method.”

That paragraph will help clear the way for public and private plant breeders to use gene editing in their crop and trait development programs.

Genome editing, or gene editing, involves changing the genetic code of a plant with technology such as CRISPR-Cas9, a technique used to cut sections of DNA. Scientists from California and France won the 2020 Nobel Prize in Chemistry for their discovery of CRISPR.

It allows scientists to precisely change a plant’s DNA to achieved desired traits, such as improved disease resistance or healthier oils in the kernel.

It is also being employed in medicine.

In December the U.S. Food and Drug Administration approved gene editing to treat sickle cell disease, a rare, genetic mutation that causes red blood cells to develop a crescent or “sickle” shape.

The misshapen cells restrict flow in blood vessels and limit oxygen delivery to the body’s tissues, causing severe pain and damage to organs.

“Gene therapy holds the promise of delivering more targeted and effective treatments, especially for individuals with rare diseases where the current treatment options are limited,” Nicole Verdun of the FDA said in a news release.

Most plant breeders and plant scientists say that gene editing is a new tool in the toolbox, which could lead to faster development of new crops and traits.

Health Canada decided a couple of years ago that gene edited crops are safe. So, in most cases they will be treated the same as crops developed through traditional plant breeding methods. The exception is when foreign DNA is introduced using gene editing. In those cases, gene edited crops would be regulated more like transgenic plants.

Commodity groups and value chain organizations in Canada’s grain industry have been waiting for the CFIA to make its final ruling on livestock feed and gene editing crops.

“In recent years, the grain sector has faced punishing drought conditions and we have too many examples of crop diseases that lack adequate control. Gene editing can help develop solutions faster and more efficiently than traditional plant breeding methods allow,” said Thomas of the Canada Grains Council.

“This news opens up incredible opportunities for innovation within the grain sector…. (It) directly translates to stability in food supply and prices, which is crucial for both our economy and food security.”

– Robert Arnason is a reporter with the Western Producer.

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Such climatic difference presents a patchwork of knee-to shoulder-high cornfields. Once harvested, it might be challenging to balance them in silage-based lactation dairy diets unless we make sure there is a current lab analysis of each situation, so new diets are well-balanced to maintain optimum milk (and milkfat) performance.

Even before I take such samples on any farm visit, one of the first things I do is collect a sample of corn silage from the feed bunk. High-quality corn silage has a nice golden colour, smells buttery and is slightly wet. It’s the result of processing tonnes of chopped whole corn plants at about 65-70 per cent moisture and tractor-packed onto a concrete pad (bunker silo) and often covered with a thick plastic sheet to form and airtight seal.

The accompanying chart below gives some of the important guidelines (source: University of Delaware) to make well-preserved corn silage:

Variable weather ahead

Neither extremely dry or extremely wet weather is ideal for producing and harvesting corn silage.

Localized thunderstorms throughout the rest of the summer will probably miss some areas and lead to a lot of dry corn silage being put up. This doesn’t make the best lactation feed, because a harvested moisture content of less than 60 per cent does not allow chopped forage to be packed tightly and exclude most air to undergo seamless anaerobic fermentation.

With drier corn, just the opposite occurs, namely undesirable bacteria: a variety of moulds/mycotoxins and penicillin-fungi thrive at these low oxygen levels and limited moisture. So it might be of no surprise that such unpalatable dry and mouldy corn silage comes out of the bunker when it is opened.

It is possible the opposite weather may occur, where thunderstorms hit areas several times with excessive rain, or we have a widespread wet and cool autumn. In both such cases, wet and immature cornfields are ensiled at a higher moisture level than the desirable 60-65 per cent.

This wet forage condition usually shifts fermentation from good lactic acid bacteria to undesirable clostridia bacteria producing large quantities of butyric acid from forage sugars and organic acids. Substantial butyric acid production in corn silage means huge forage dry matter losses and the pH of the silage may become too high (> pH 4.0) to preserve the silage. It also gives the silage an off-smell like rancid peanut butter. So when substantial butyrate-containing silage added to a TMR is fed to lactating dairy cows, dry matter intake and thus milk production suffer.

No matter on how the corn silage turns out before it is fed to lactating dairy cows, it is important to take samples for a laboratory analysis. Ask the lab for moisture, crude protein, soluble protein, ADIN, NDF, ADF, NFC and starch tests. From these analytical results, we can rebalance any type of corn silage into new lactation diets.

Last year, I balanced a dairy lactation diet for a 150-cow dairy, based upon corn-silage samples with forage analysis – DM basis of 40 per cent dry matter content (slightly dry), ADF – 18.8 per cent, NDF – 35.77 per cent, starch – 33.50 per cent and NFC – 44.70 per cent. The only other forages were two cuts of alfalfa with a Relative Feed Value (RFV) of 98 and 140. Therefore, our biggest challenge was to offset this high-energy corn silage and maintain enough dietary effective fibre.

We had strong dry matter intakes by the resident lactating cows to make up a new dairy diet that included: 1. Forage to concentrate ratio of 64 per cent; 2. Reduction of grain-corn intake by 1.5-2.0 kg and maximum limits of 4.0 kg per head; and 3. Increased bypass-protein level with 200 grams of bloodmeal. Despite some minor tweaks to this diet, it has been fed for the last nine months to yield about 40 kg of milk with a 4.21 per cent milkfat per lactating cow.

This is a good example of balancing a nutritious dairy lactation diet with whatever quality of corn silage comes out of the bunker. This year’s final corn silage should be no different, despite being a couple of months away from being ensiled. The important thing is to take forage samples to know what we are dealing with, when incorporating new corn silage into high-performing dairy lactation diets.

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Oregon-based processor Grain Millers, whose Canadian operations include its oat mill at Yorkton, Sask., said in a memo Tuesday to growers that the Canadian National Millers Association has asked all member businesses to advise growers of their lambda-cy policies.

The move comes after a 2021 re-evaluation decision by Health Canada’s Pest Management Regulatory Agency (PMRA) took effect at the end of April this year, prohibiting the use of lambda-cy on some crops altogether and the use of any lambda-cy-treated crops as livestock feed.

“Now, while most of you are growing your oats for human consumption, the issue lies in the byproducts that are produced in the milling process,” Grain Millers’ Yorkton procurement manager, Scott Shiels, said in the memo.

“For us, that is primarily the oat hulls, and screenings, which are almost exclusively sold into the feed market.”

Thus, he said, the company is “being forced to prohibit the use of lambda-cyhalothrin on any oats being sold to Grain Millers.”

From now on, he said, “prior to delivering any oats in the future,” growers will be required to sign a delivery affidavit which will include a statement to that effect.

Lambda-cy products currently registered in Canada for use in oats include Syngenta’s Matador and Warrior and Adama’s Zivata against grasshoppers, and Adama’s Silencer against armyworm.

Since April 29, however, those products’ labels all specifically prohibit their use on any crops that may be destined for feed, including crop screenings or other byproducts or aftermath. Treated fields also cannot be grazed by livestock, nor cut for hay or forage.

Among other prohibited products, Grain Millers’ memo also names Karate — a Syngenta insecticide in markets outside Canada — and Saber, a pour-on and ear-tag insecticide registered in Canada to protect cattle against insect pests.

Since late April, grain grower organizations have warned that because any crop entering the grain handling system is eligible for use as livestock feed, the use of lambda-cy “poses a risk of becoming an off-label use.”

Grower groups since then have also advised farmers to discuss any potential related market risk issues directly with their grain buyers. — Glacier FarmMedia Network

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After struggling for nearly three years in a row, feeding margins have finally moved into positive territory. Strength in the fed market has transferred into the feeder complex. As of earl May in central Alberta, Angus-blended, lower-flesh steers on light grain ration with full health data averaging 842 pounds were valued at $270. In the same region, tan steers weighing 650 pounds were valued at $320.

Feed barley prices continue to hover in the range of $415-$425/tonne in southern Alberta. However, Canadian farmers are expected to increase barley acres this spring. Export demand for Canadian barley during the 2023/24 crop year will be down sharply from a year ago. Larger supplies and weaker demand for Canadian barley will result in lower prices. This has contributed to the stronger market for replacement cattle.

Feedlot numbers down

U.S. cattle on feed for slaughter in feedlots with 1,000-head plus capacity as of April 1 totalled 11.612 million head, down four per cent or 533,000 head from 12.145 million head on April 1, 2022. Lower placements during the fall and winter resulted in in the sharp-year-over-year decline in on-feed numbers for the first half of 2023. Quarterly beef production was down sharply in the first quarter of 2023 and this trend will continue in the second quarter.

The U.S. feeder cattle placement schedule has been rather unique this year. Despite the drier conditions in the U.S. Southern Plains, cattle grazing on small-grain pasture over the winter in Kansas, Texas and Oklahoma were only down about 80,000 head from last year. Therefore, feedlot placements in the lighter weight categories have only been marginally lower than year-ago levels during the first quarter of 2023.

During March, total U.S. feedlot placements were only down one per cent or 13,000 head from March of 2022. U.S. market-ready supplies of fed cattle will be rather burdensome during July and August. The market is going to be in a transition stage from an extremely tight situation during the spring to a heavy supply environment in July and August.

U.S. beef production during July and August will be similar to a year ago. The USDA estimated third-quarter beef production at 6.8 billion pounds. The industry believes the actual output will finish closer to 6.9 billion. September will be the month when supply drops off again.

The western Canadian fed cattle market will contend with similar fundamentals. Market-ready fed cattle numbers in Alberta and Saskatchewan are down significantly during May and June. During July, supplies transition to a more balanced fundamental situation. Again, it’s important to look at placements by month by weight. There is downside potential in the fed cattle market during July and August. Feedlots are holding high-priced feeders purchased in April and May. Alberta feedlot margins will dip into negative territory during July and August.

Signal to expand production

The feeder market is functioning to encourage expansion. U.S. beef cow slaughter has dipped below year-ago levels. The beef cow slaughter during the summer and fall will determine the year-over-year increase or decrease in the 2023 calf crop. Recent rains in Texas and the grazing states like Colorado have improved pasture conditions. The industry is bracing for a sharp increase in U.S. heifer retention this fall.

Approximately 45 per cent of the calves born in Canada are in Alberta. Pasture conditions are poor and forage supplies could be limited this fall. The expansion process may be delayed in Western Canada due to the adverse dry conditions. Alberta is the largest barley-producing province, so downside in barley is not a guarantee.

There is a bullish case for the feeder cattle market. We expect to see 500-pound steer calves reach up to the $400/cwt this fall in southern Alberta. Steers averaging 850 pounds could touch the psychological range of $290-$300/cwt. This is based on feed barley dropping under $300/tonne or $6.50/bu. in Lethbridge during September and October.

The fed cattle market has downside potential during July and August. During the final quarter of 2023, fed cattle prices are expected to ratchet back to historical highs. The feeder market is expected to trend higher from July through November. Keep in mind this is dependant on the feed grain price structure. If Western Canada has to import 3.5 million tonnes of U.S. corn due to the shortfall in barley production, feeder cattle prices are not going that high.

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As of late March, quality genetic steers with medium to lower flesh, averaging 950 pounds were valued at $244 in Central Alberta. Higher quality heifers with lower flesh were trading at an $18-$20 discount to steers.

Calf prices were also nearing historical highs. In the Lethbridge area, black steers averaging just under 700 pounds were trading around the $305 level while quality 625-pound steers were quoted in the range of $325-$$330.

I’ve received many calls from producers asking when the feeder market will peak? Cow calf producers are in the process of planning their fall marketing strategy. The feeder cattle futures for November continue to trade at $20 premium to May contract.

However, the January 2023 feeder cattle futures are trading at $2 discount to November contract. It appears that traders expect feeder cattle prices to peak in November of 2023. When you’re at the top of a mountain, looking down can make your stomach turn. But let’s look at some of the factors that will change over the winter of 2023 resulting in softer feeder cattle prices in the first quarter of 2024.

As of late March, the October 2023 live cattle futures were trading around the $164 level; the December 2023 live cattle futures were quoted at $168 and the April 2024 contract was at $174.

Fed cattle prices are expected to trend higher until April 2024. It’s important to note that the June 2024 live cattle futures were hovering at $169. The Alberta and U.S. fed cattle market will peak in April 2024 and then start to trend lower. Feeder cattle that will be come on the fed cattle market after April 2024 will be valued less than those replacements finished before April.

The feed grains factor

The second main factor influencing the feeder market is the feed grains complex. The Lethbridge barley market for April and May was trading in the range of $410-$425/tonne delivered. Canadian barley production is expected to reach 10.5 million tonnes this year, up from the 2022 output of 10.0 million tonnes. U.S. corn production is expected to finish near 385 million tonnes, up from the 2022 crop size of 349 million tonnes. For September and October, Lethbridge barley has been trading around $375/tonne delivered; however, ideas are that Southern Alberta barley prices will drop to $300-$330/tonne delivered during the harvest period. Yearlings coming on the market in spring will have the bulk of their weight gains with old-crop feed grains. Feeder cattle under 700 pounds will have most of their weight gains with new-crop.

Feeders under 750 pounds can be purchased as grassers whereas replacements over 750 pounds tend to head straight to the feedlot. Pasture conditions are excellent in Western Canada. The cost per pound gain on grass is considerably less than in the feedlot. These cattle will also come on the fed cattle market later than those feeders placed directly in the feedlot. Buyers shopping for grassers can pay more for their feeder cattle than those producers that will send the animal straight in to the feedlot.

What about replacements?

Heading into April 2023, higher quality steers weighing 450 pounds were nearing the psychological $400 level. The feeder market is functioning to encourage expansion. Heifer retention is hard to forecast. U.S. heifers for beef cow replacement on January 1, 2024 are expected to reach 5.8 million head, up 750,000 head from January 1, 2023. Available feeder cattle supplies in the U.S. are expected to be down by 750,00 head due to heifer retention. In Western Canada, heifers for beef cow replacement on January 1, 2024 are expected to total 600,000 head, up 50,000 head from January 1, 2023.

The U.S. and Canadian beef cow slaughter has been higher than expected throughout the first quarter of 2023. This is expected to change. Cull cows and canner cow prices are increasing reflecting that supplies are tightening. This is another factor that is difficult to forecast; however, the industry is bracing for a sharp year-over-year decline in the cow slaughter in 2023. This decline in the cow slaughter by itself is enough to result in a year-over-year increase in the calf crop. The consecutive declines in the U.S. calf crop appear to be coming to an end in 2023. The U.S. calf crop from July through December 2023 may be marginally higher than the output during the same timeframe of 2022.

Finally, the U.S. and Canadian economies have potential to enter a recession in the final quarter of 2023 and first quarter of 2024. Higher interest rates, elevated inflation, growing unemployment and softer real wages will be the main factors curbing beef demand when cattle prices are at historical highs during the winter and spring of 2024.

Looking ahead, the January 2024 feeder cattle futures are trading at a $2 discount to the November 2023 contract. Traders expect feeder cattle prices to peak in the final quarter of 2023. This coming fall will not be the year to background your calves over the winter. Price insurance for calves and backgrounders will be discounted as the feeder market will trending lower. You’ll be looking down the mountain so make sure you have your “Tums” or “Gravol” handy.

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