Livestock estimates

The national herd of cattle and calves declined 1.0% from July 1, 2001, amid a favourable export market, according to an annual survey of 22,400 farmers. The vast majority of exports went to the United States.

As of July 1, livestock producers had an estimated 15,277,200 head of cattle on their farms, down slightly from the record 15,424,500 head on farms as of July 1, 2001.

Led by a 16% plunge in drought-affected Alberta, cattle inventories on Canadian feeding operations tumbled 6.6%. Increases in Manitoba and the East partially offset declines in Alberta and Saskatchewan. The majority of cattle on feeding operations can be found in Alberta, where dry conditions, lower cattle prices and rising feed costs pushed inventories down.

This decline occurred in the wake of a 22% increase in exports of live animals during 2002, and a 12% increase in exports of beef, as opposed to live animals. At the same time, domestic slaughter fell 1.0%.

Dry conditions in portions of the Prairies may have had an impact on farmers' decisions to ship more cattle south of the border for feeding, finishing and slaughter. Other factors behind the exports were favourable exchange rates, general growth in the American demand for beef and strong prices in 2001. Prices for livestock, particularly hogs, softened in 2002.

Average prices for hogs in the second quarter were down about 29% from the second quarter of 2001. Despite concerns over prices, farmers reported a record 14.6 million hogs as of July 1, up 3.9% from the same time a year earlier.

Sheep and lamb exports also surged in the wake of increased demand and a lower Canadian dollar. Farmers had an estimated 1,252,500 animals on their farms as of July 1, up 0.4% and a modest gain compared with the last four years.

This release is based on the Livestock Survey conducted in June, in which farmers reported the number of livestock on their farms as of July 1. Consequently, activity that occurred after July 1, principally because of drought conditions in the Prairies, will be reflected in future reports. Historical data have been adjusted to align with the 2001 Census of Agriculture.

Livestock sector expands with fewer producers

Census of Agriculture data show that the livestock sector, dominated by cattle and hogs, continues to grow. Livestock producers have benefited over time from favourable exchange rates and increasing demand for both animals and meat from south of the border. The growth coincides with freer trade.

Western Canada's livestock sector has grown more rapidly than that in the East, partly because of the advantage of feeding animals close to key feed-producing areas. The demise of the Crow Rate, which subsidized transportation of western grain, gave a competitive advantage to producers closer to feed supplies.

Census data showed that the cattle sector grew a modest 4.4% from 1996 to 2001, and 15% from 1981 to 2001. As of May 15, 2001, Census Day, there were a record 15.6 million cattle in Canada.

Even though the beef sector is responsible for the increase in the cattle sector, there were fewer producers. In 2001, 122,000 farms reported cattle, down 14% from 1996 and 34% from 1981.

The average beef operation had 244 cattle, excluding farms with agricultural sales less than $25,000. Cattle can be found on all sizes of farms, with no one size dominating. Beef producers with sales of more than $500,000 held 28% of the cattle at the time of the census.

Cattle, particularly beef, are more prevalent in the West. Three-quarters of the national herd is in the West, with Alberta alone accounting for 43% of Canadian cattle, or about 6.6 million animals.

At the same time, 21,900 producers reported dairy cows. Dairy farms are more common in the East with 38% of the herd in Quebec and 34% in Ontario.

The trend to fewer dairy cows continued in 2001. The number of farms reporting dairy cows declined 29%, and the number of dairy cows fell 14% compared with 1996. Efficiency gains continued to be made in the dairy industry, as production remained stable due to increased production per animal.

Hog numbers at record levels

One of the most significant increases shown by the 2001 Census of Agriculture was a 26% jump in hogs since 1996. At the same time, the number of farms reporting hogs fell 27%.

The 2001 Census of Agriculture enumerated 14.0 million hogs, up 41% from 1981. Expansion has been more rapid in the West. However, the two largest hog producing provinces were still Quebec, with 4.3 million head, and Ontario with 3.5 million.

About 15,500 farms reported hogs on the census. The average operation, excluding those with sales of less than $25,000, had 1,195 hogs, up 70% from 1996.

Most hogs are now produced on large operations, especially in western Canada, where 75% of hogs were on operations with sales of over $500,000. In the East, 52% of hogs were on such large operations.

Available on CANSIM: tables 003-0004 and 003-0030 to 003-0032.

Livestock statistics (23-603-XIE, $34/$112) will be available in September.

For more information, or to enquire about the concepts, methods or data quality of this release, call the Agriculture Division information line (1-800-465-1991), or contact Robert Plourde (613-951-8716, robert.plourde@statcan.gc.ca), Agriculture Division.