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Marketing Report

I believe we are at a critical phase in the growth of the bison industry.

We are not at the top of a cycle (everyone knows prices have been higher - and should be higher now), and we are not at the bottom of a cycle (thank heavens we are past that).

So why, if we are mid-cycle would I believe this is such a critical phase?

A number of factors are at work that may have a very serious impact on the bison industry, now and in the future.

Our close brothers - the beef ranchers - are currently weathering what many call the 'Perfect Storm'. Low prices, high Canadian dollar, huge surge in feed grain prices have all contributed to near record negative margins in the beef industry.

As beef go - so does bison! Or does it? Should it?

In the past we have followed many trends and cycles from the beef industry. And as are industries are vey similar, we will continue to do so to some extent.

But I believe we can change our destiny. I think we have certain advantages, and powers - to allow us to skirt this perfect storm the beef industry is going through.

First of all - low prices. Yes at times we compete head to head with beef. But should we? Why do we? We have to work on our mindset, and our customers mindset that we are not beef. We are a niche product. Low fat! Great sweet taste! High Iron! The healthy red meat! If we can continually sell our product at a premium. We must be in our consumers mind as 'Lobster' not 'Whitefish'.

Next the high Canadian dollar. We cannot rely on the US market. It will always be an important market - that I agree, but there is so much opportunity here at home (where it does not matter a bit what our dollar does). And we have to keep finding more alternative markets: Europe, Japan, Asia, Mexico. The list is endless for a premium product to be sold at premium prices.

As for feed grain prices, well we have a natural advantage with bison. We do not need the amount of grain that cattle need to finish. In fact we have many producers that get a premium for 'grass fed' bison. High grain prices will affect some, but not nearly like the cattle industry.

So we can overcome many of the factors that the cattle industry have to face in their perfect storm. But do we have problems unique to the bison industry.

I believe at this point in time our biggest hurdle is mind-set. Many came in to the bison industry expecting larger margins than the cattle industry had. Low feed costs, easy calving, low maintenance, less handling, higher meat prices and a very strong breeder market was all part of the sales message. Not everything has turned out quite so rosy.

The industry has been through some extreme highs and lows. Now that we are back in an upward trend, producers new and old will start re-evaluating - based on facts - not theory.

Fact - bison are a viable agricultural alternative. Bison meat can and should be sold at a premium to beef. Bison production is unique - and we have to highlight how they can fit the right situations.

Positive margins are achievable. Consistent long term profits is what we want to strive for though, not huge margins that are cyclical.

But to do that we need every bison producer to be an ambassador for the industry. No false promises, simply realize that bison are a good long term alternative to many farm and ranch operations.

More than ever we need to step up, help out, everyone do a part in moving the bison industry forward. As John Heywood said, 'Many hands make light work.'

Prices Up at 2007 Canadian National Bison Show & Sale

Regina, Saskatchewan, November 26, 2007 Bison prices at the 15 th Annual National Show & Sale with increases of over 20%. Two year old bulls averaged $2, 450 in 2007 compared to just over $2,000 in 2006 – a 22.5% increase. Bred two year old heifers increased 20% with an average of $1,800 this year compared to $1,350 last year. Yearling bison bulls averaged almost $2,350 compared to $1,550 last year. Yearling heifers averaged almost $920 compared to about $740 last year.

“These prices certainly reflect the cautious optimism in the industry” stated Mark Silzer, President of the Canadian Bison Association. With the implementation of the final rule in the U.S., a greater number of bison and bison meat products are eligible to the U.S. market. “By allowing bison born after March 1, 1999 and meat products from all animals providing the specified risk materials are removed expands the market for Canadian bison in North America significantly” indicated Silzer. Of the 32 bison up for auction, seven were sold to buyers in the United States.

The demand for bison products has increased significantly over the past three years. “This increase is a result of investment of significant resources – money, time and effort by the producers, marketers, and industry associations. These efforts have heightened consumer awareness of bison products throughout North America and Europe at a time when consumers are focusing on healthier lifestyles” stated Terry Kremeniuk, Executive Director of the Canadian Bison Association.

“We are confident in the future of the Canadian Bison Industry. We are confident that increased prices will add to the profitability of the bison industry and encourage the capital investment required to grow the bison industry to grow in North America” concluded Silzer.

BPA in Partnership with Elk and Deer on Financial Calculator Project

We have begun a new project in partnership with the Elk and Deer association and Alberta Agriculture and Food.

The purpose for the project is to develop a program for the bison, elk and deer farming industries that will help in financial management of the farm. It will be comprehensive so that it will be applicable to the wide variety of operations within these industries. There will be a specific section for each of the three farmed species and will make provision for the varied revenue streams available to these producers. Sections such as: live animal sales, semen sales, calf and fed animal sales, antler sales, meat and by-product sales.

The program will be developed in both CD and web version. The calculator tool will be linked to association and commission websites. The CD will be made available for those producers not hooked up to high speed internet.

The project will be lead by Alberta Agriculture and Food staff, and will involve hiring a computer consultant for the expertise in programming, the look of the menus, and calculations for the tool.

Upon completion of the program, it will be presented to industry at annual conventions and other events.

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