Ontario Grain Farmer October 2021

16 GREATER NUMBERS OF livestock, changes in animal production strategies, and novel uses are contributing to growth — or potential growth — in Ontario’s feed grain sector. The complexity of feed systems, however, makes garnering a clear picture of what is possible challenging. LESS ON-FARM FEED PRODUCTION A key driver in Ontario’s feed market is, predictably, the size of the provincial livestock herd. But according to Steve Duff, chief economist for the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), increasing demand for feed grains also stems from a general shift away from pastures in the cattle sector. An increasing proportion of dairy farmers, for example, are opting to buy rather than grow their own feed grains, or pasture actively producing dairy cows. “When Ontario followed the United States into ethanol, when the province had funding for it… some were very critical of the impact that would have on corn demand, driving up feed prices. That was sort of true. What happened was, as that evolved, we were pretty far into a drive to contained feeding,” says Duff. “It’s changed the nature of corn demand. Even in some sectors where you see more home-grown feed… they’re selling it to a feed mill who processes it and sells it back to them.” Grain farm infrastructure has changed as well. Duff says the greater availability of on-farm grain storage, combined with more farmers Feed market growth potential COMPLEXITY CREATES CHALLENGES Matt McIntosh willing to contract, makes it harder for livestock producers to find unpriced corn in the modern market. “We used to have more unpriced [grain] in paid storage. Now, most is forward contracted and stored on farm operations. It means it’s just that much less accessible,” he says, adding those purchasing feed also frequently find the costs of producing equivalent amounts of grain to be more expensive. Fundamentally, Duff reiterates there are no hard numbers for the average tonnage of feed demand in the province because there is no defined source measuring that demand. The same applies at the national level. The only feed demand calculation derives from the total number of animals and meat produced. Ontario and Canadian meat production are indeed growing over time, however, and feed demand with it. The shift to contained rather than pasture feeding has particularly increased the demand for corn as a feed source, as well as premixed feed rations. Market Development BY-PRODUCT SHORTAGES High feeding-related costs originating in the midst of the COVID-19 pandemic continue to be a lasting issue for many livestock producers, according to Megan Van Schaik, beef cattle specialist with OMAFRA. At the start of the pandemic, she says the availability and higher cost of by-products for feed – driven by supply issues – was a particularly acute problem. This subsequently put upward pressure on soy meal and other grain products as nutritionists searched for substitutes. “I took a look through my data from previous work and it looks like the rates in Ontario are typically 15 to 10 per cent,” says Van Schaik in reference to dried distillers’ grains averages in feed rations. “Inclusion rates can be pushed higher, but this will certainly be a function of price and availability.”