Cattle Shortage Pressures Auction Market
This summer, two livestock auctions in Saskatchewan have closed, and more may follow due to a decline in cattle herds. The Livestock Marketing Association of Canada (LMAC) noted that market conditions have changed significantly due to a reduction in the already stressed cattle population, exacerbated by drought. A limited number of cattle available for live auction, combined with a shortage of skilled labor, is forcing businesses to adapt.
Rick Wright, president of LMAC, stated, “Over time, we anticipate that several more auctions across Canada will close, perhaps not this year or next, but rebuilding will take a long time, and we may not return to numbers as we once did.” Kelvington Stockyards closed on August 1, and Assiniboia Livestock Auction followed suit later in the month. It remains uncertain whether either auction will reopen when cattle numbers recover.
Both businesses announced their closures on their websites. Roy Rutledge, who previously managed Assiniboia for Nilsson Bros., disclosed that his corporate office decided to shut down operations. He mentioned that after years of underperformance, he attempted to turn the auction house around but could not generate enough business to cover expenses. “It’s too little, too late. I couldn’t bring in enough work to pay the bills,” he said, expressing gratitude to those who supported him in reviving the auction in 2023. Unfortunately, he added, it was not sufficient.
Rutledge declined to comment further on the closure, stating, “We will try to accommodate everyone as best as we can at Weyburn Livestock Exchange. However, we recognize that for many, there are geographically more convenient options available.” After purchasing the auction in the mid-1980s, he initiated presort sales, redesigned facilities to feed and water calves before sales, and focused on calf health for transport readiness. These innovations helped Assiniboia stand out, making it one of the largest auctions in Southern Saskatchewan.
A 2011 article by the Canadian Cattlemen Association noted that 120,000 head of cattle passed through the two rings annually, primarily during the six-week fall run. David Nilsson commented that he would not provide feedback on the decision to close Assiniboia, but he acknowledged the troubling trend of smaller cattle herds.
Clint Peterson, the manager at Kelvington, identified the drop in cattle volume as a significant factor, alongside the decline in small producers. “A combination of possible operational economics and deteriorating infrastructure problems forced management to make the tough decision not to continue with live animal sales at Kelvington Stockyards,” the website announcement stated. “We will provide marketing solutions to our established producer clientele.”
Adele Buettner, general manager of the Saskatchewan Cattle Buyers Association, could not comment on the specifics of the closures but pointed to the smaller cattle herds as a significant indicator. “As the industry consolidates, marketing systems are also consolidating,” she noted. With its existing capacity, approximately 90% of the province’s cattle are marketed through LMS members, and she mentioned that there are additional marketing options for producers as the industry evolves.
Jeff Yorga, president of the Saskatchewan Cattle Breeders Association, highlighted that the costs of operating a livestock auction have risen significantly while margins are shrinking due to fewer cattle. “A closure like Assiniboia will be tough for one-man operations,” he said, noting that the reduced number of producers and shrinking herd sizes accelerate financial pressures for small operations. A farmer with 40 cattle finds it increasingly challenging to compete due to the costs associated with transporting calves over greater distances.
CEO Grant McLellan of the Saskatchewan Cattle Association attributed the situation to drought and decreasing herds. “We want more competition, more business, and more operations, but this is another side effect of drought,” he stated. Wright confirmed that these two closures are the only ones in Saskatchewan so far; however, he noted similar consolidations have occurred in Alberta, leading to the formation of larger auction companies capable of operating at economies of scale.
The closure of auctions devastates communities, as people no longer come to town for that purpose. “Farmers come to town to deliver their cattle, get gas, buy food, and pick up parts. It brings traffic to the community. And when they go, they always leave with a check, meaning they have disposable income to spend,” he said. Farmers gathered when they learned about the struggles of their local auction houses but often failed to maintain operations. One success story, however, is the Weyburn auction, which was revitalized under new management.
Wright pointed out that many auction management teams are aging, making it difficult to find qualified replacements.
Source: Tarım Haberleri
John Peterson graduated with a degree in Agricultural Sciences from Wageningen University in the Netherlands. His specialization is in sustainable crop production and soil health management. John is passionate about integrating modern technology with traditional farming methods to enhance productivity while preserving the environment. He currently works as a consultant, helping farmers adopt sustainable practices.