Bison producers eye price increase in fall

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This article was published 01/03/2024 (927 days ago), so information in it may no longer be current.

Bison producers foresee an increase in the prices of finished animals this fall as they contend with the prospect of drought and other challenges, Manitoba Bison Association president Robert Johnson told the Sun.

“A price increase is on the horizon, but I exercise caution in predicting an exorbitant surge,” Johnson said Saturday at the No Borders Show, Sale and Convention at the Westoba Agriculture Centre of Excellence in Brandon.

“Probably an increase of between five and 10 cents is expected. Bulls are worth probably $4.20 a pound; we’ll probably see that price go up to $4.30.”

The price would be driven by a shortage of finished animals in the fall, he said, adding processors are already selling for fall sales.

“There might be competition for the available carcasses, potentially leading to higher prices.”

Johnson said MBA’s objective is to sidestep a recurrence of the pricing challenges witnessed in 2017 and 2018 when costs soared significantly, prompting consumer skepticism about the value of bison compared to regular beef.

The expected increase is also contingent on favourable weather conditions, with producers hoping for timely spring rains and good forage growth to positively impact the herds.

Drought, Johnson said, is a significant challenge bison producers foresee in 2024. Unlike the beef sector, where there’s more flexibility, bison producers face liquidity issues, especially during droughts or feed shortages.

“In the beef industry, you can easily sell cattle at any auction market in Brandon or other locations,” he said. “However, for bison, options are limited. While there are online auction services and video auctions, the lack of physical auction markets can make it challenging for producers.”

Rheault Legacy Bison co-owner Claudette Pshebniski also noted that lack of liquidity becomes a struggle, especially when dealing with factors like drought or the need to downsize for various reasons.

Pshebniski pointed to the aging demographic of bison producers, emphasizing the need for a thoughtful succession plan for the industry’s sustainability.

“Many of our producers are at an age where retirement or downsizing becomes a consideration. The age of our membership aligns with broader trends in the agricultural sector,” she told the Sun. “People get tired of dealing with drought, reach the retirement age of 60 to 70, or desire a lifestyle change, often moving closer to family.”

Another challenge, the MBA president said, is the fluctuating commodity market. He said while grain farming has been lucrative with record highs in oilseeds, cereals, pulses and land prices, the bison market faced a downturn during COVID.

Pshebniski, who is an MBA board member, said the booming commodity market tempts some producers to question the profitability of bison farming compared to grain farming.

“Producers question the effort and resources invested in bison when grain farming seems more profitable with less intensive labour,” she said. “Balancing the care and upkeep of bison, ensuring water supply, enclosure maintenance, and addressing unforeseen challenges add to the complexities of bison farming compared to the seemingly easier returns in grain farming.”

Meanwhile, Johnson said the industry’s unique position as primary producers bestows a distinctive advantage, as producers play a pivotal role in the processors’ value chain.

This strategic importance, he said, prompts them to seek advanced inventory insights for the third and fourth quarters, especially as they finalize sales for the approaching fall season.

Another area of anticipation for MBA members is the expected increase in demand for bison meat in 2024, which is one of the post-pandemic benefits for the industry.

“Despite facing challenges during the COVID-19 pandemic, the industry experienced a surge in interest,” he said. “Consumers, drawn to the health benefits and sustainability of bison meat, are likely to continue seeking it as a viable alternative. There’s a potential for a broader consumer base.”

Johnson noted the pandemic-induced shift in consumer behaviour, as supply chain shortages prompted people to try bison for the first time. “The unique attributes of bison meat, such as lower fat content and versatility in cooking, could contribute to sustained interest.”

For newcomers considering entry into the industry, both Johnson and Pshebniski emphasized thorough planning and seeking mentorship.

Understanding the unique characteristics of bison, implementing effective management practices and establishing a solid business plan, Johnson said, are considered essential steps.

“The commitment required for the bison lifestyle is key and newcomers should plan to immerse themselves in the industry before making significant investments,” Pshebniski said.

As Manitoba’s bison industry navigates these challenges, she said, “capitalizing on opportunities will be crucial. The resilience and close-knit nature of the bison community in Manitoba will play a pivotal role in steering the industry through the complexities of the market this year.”

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