Border Opening Prompts Optimism for Saskatchewan Bison Industry

The recent re-opening of the American border is putting upward pressure on bison prices and a smile on the faces of bison producers'.

Saskatchewan Bison Association president Mark Silzer said the price increase was almost immediate.

"We had our national sale a day after the scheduled opening of the border. There were some American buyers up, and that saw the first breeding stock animals cross the border in years. Prices at the sale were up 20 per cent over the previous sale a year ago," said Silzer, who is also the Canadian Bison Association president.

Like the cattle industry, Silzer said the border closure had been taking its toll on the bison industry.

"I think that, ever since BSE, Canadian prices have lagged behind the U.S., both in finished animals and feeder stock. I think, with the border open, we are going to start to see Canadian prices come up and be more in line with U.S. prices," said Silzer.

The national bison sale was held at Canadian Western Agribition. Seven of the 32 animals that went on sale were bought by Americans, with two-year-old bulls averaging $2,442 - a 22.4-per-cent increase over 2006.

Silzer is cautiously optimistic that the upward trend will continue.

"It's hard to say. Meat prices have trended up over the past three or four years in Canada and the U.S., but Canada has lagged behind. There has been a significant investment in the marketing of bison meat over the last number of years, and we are finding ourselves approaching a situation where we are going to have to ration bison meat because we just don't have enough. That will see finish prices go higher. As those prices go up, I think you are going to see higher prices in breeder stock as well," said Silzer.

Price increases are not the only implication of an open border. It also affects the genetic diversity of the North American herd.

"There's been a lot of American producers who would have liked to access genetics out of Canada. The bison herd in North America is only 500,000 head, and there is a need for producers to access genetics from both sides of the border," explained Silzer.

However, Silzer points out there are some challenges for the bison industry.

"I think our producers are being affected the same way that beef and pork producers are by the higher dollar - that is causing some concern and affecting prices for producers - and I think the other thing is the cost of feed. With grains and oilseeds up, we have seen feed prices rise dramatically, and certainly that is having a negative impact on our producers," said Silzer.

But Silzer points out that, on the whole, the industry is cautiously optimistic.

"I think prices will move up and fall in line with prices south of the line, and I think that, when you look at the supply/demand situation, it looks like this industry is poised to be looking at some pretty good times over the next couple of years," said Silzer.

For more information, contact:
Mark Silzer, President
Saskatchewan Bison Association
Phone: (306) 682-4933