The Economics of Beef Cow-Calf Production In Alberta: Research and Extension

Beef cow-calfproduction is the backbone ofAlberta’s expanding beef cattle industry. Production has grown significantly in the past four decades. The uninitiated may perceive this low margin and low return business as being uneconomical. However, careful examination of production and economic indicators suggests otherwise. The Production Economics Branch of AAFRD has been conducting research into the economics of beef cow-calfproduction over the last 10 years. This Integrated Resource Management (IRM) project examines each enterprise on the farm as well as the whole farm. Farm Management and production specialists are partners in this research and extension effort. Consequently all aspects of the farming operation are analysed and reviewed with study participants at scheduled regional seminars. The production economics research results indicate that 1994 was a profitable year for Alberta’s cow-calf producers. Moreover, between 1985 and 1994, cow-calf production was reasonably profitable. Cashflow without government support was positive every year except 1985. Most production indicators for the average and the Top 1/3 management farms were similar. However a key difference was that Top 1/3 farms were able to wean more pounds of calfper cow exposed, while keeping cost to a minimum. Continued industry success and competitiveness will hinge on annual growth (weaning weight) and low cost management. The IRM project can go a long way in providing technical support for the industry as it positions itself for the 21st century.