The Choice/Select Collapse
Anyone selling on a grid certainly has noticed that the Choice/Select spread isn’t what it used to be. In fact, at the time I was writing this, the Choice/Select spread was standing at 50¢/cwt.

Certainly, there’s a whole host of reasons for the Choice/Select spread narrowing. The easy reason is that cattle are grading better. There are several factors contributing to this – better genetics, an increase in yearling cattle, the implementation of instrument grading, the shifting of breed makeup in the Southeast, and maybe even learning how to feed and utilize the distiller byproducts that were initially thought to reduce quality grade.

There are demand issues as well. Consumers are trading down, the hotel, restaurant and institutional (HRI) trade has fallen significantly; the number of $100/person steak night outings has been declining precipitously.

The issue isn’t so much the confluence of these factors to form the perfect storm, but rather whether it represents an anomaly or a long-term trend. I think it’s the latter.

Here are a few points: The genetic component is unlikely to go away. Selection pressure for improved carcass merit is now well ingrained in virtually all major breeds. We’ve already seen that normal seasonal weather patterns are back. In the post-ethanol-subsidized world, we’re going to have a smaller beef industry, and that means plenty of demand, more yearling placements and longer feeding periods as feeders struggle to utilize capacity.

Instrument grading is likely to continue and will forever change the moving line that kept grading percentages relatively constant. While the economy is showing signs of improvement, runaway spending and government interference in the marketplace virtually guarantees that growth won’t be as robust as it has been in the past.

Considering these factors, it looks like the economic incentive has and will continue to move away from quality grade, with more emphasis being placed on averaged daily gain, dressing percentage, and feed conversion/efficiency. Compositional endpoints will remain critical to profitability, but the emphasis will continue to shift away from quality grade and more to compositional endpoints, efficiency and weight.
– Troy Marshall

At the start of 2010 two important changes were put into operation pertaining to the Canadian Charolais Association (CCA) registration system. The first change was a substantial upgrade to the CCA registry program which was initiated to improve operation to on-line users as well as easing data entry work for the office staff. Many on-line users would have experienced changes to the Whole Herd Enrolment (WHE) entry procedures this year. Secondly as a result of some by-law changes established at the AGM in Russell, MB on June 30^th 2009. The by-law changes included a series of substantial changes to the entry deadline requirements and fee structure of the WHE program, which have caused queries from many breeders concerning the term re-activation fee. The term is a new description for late fee and deals with females who are returning to WHE after having missed prior year(s). This is actually not a new charge and we have included a historical review of the by-laws as it relates to the regulations of the WHE late fee provision of the program.  

1998 AGM Moose Jaw, Saskatchewan

There will be a $60 activation fee to enrol females who were not entered on the first inventory submission due by March 15, 1998. For example, if a member chooses not to enter a female with the first inventory but the following year the member wishes to register her calf, the member is required to pay $60 to enrol the cow prior to registration of the calf. The calf can be subsequently registered and transferred.

2001 AGM Calgary, Alberta

Article XXIII section 5 (iii) ending paragraph states

There will be a $64.20 activation fee to enrol females who were not entered on the first inventory submission due by March 15, 1998. For example, if a member chooses not to enter a female with the first inventory but the following year the member wishes to register her calf, the member is required to pay $64.20 to enrol the cow prior to registration of the calf. The calf lcan be subsequently registered and transferred. 

>Whereas, the activation of $64.20 was deemed excessive, and;

>Whereas, and reactivation fee or late enrolment fee of $64.20 was deemed excessive, and;

>Whereas, the association continues to ensure a fair and reasonable fee structure for the     benefit of association members to enrol their females.

Be it resolved that:

Article XXIII section 5 (iii) paragraph 1 b rewritten to read,

(iii)WHE will apply to all females who calve on or after January 1, 1998 as identified by the breeders’ annual inventory listings. In regards to bred heifers the annual assessment fee will only apply in their first calving year provided they do not exceed three (3) years of age. This is a single fee system wherein each female Charolais is assessed an initial activation fee of $20.00 plus GST and an additional annual assessment fee of $20.00 plus GST for each year thereafter.

And further:

Article XXIII section 5 (iii) ending paragraph be rewritten to read, “There will be a late enrolment fee of $10.00 applicable to females which were not entered on the initial inventory submission due by March 15 for spring calvers and August 15 for fall calvers in each year. The late enrolment fee will be in addition to the regular assessment fee of $20.00. If the member chooses to enrol the female in a year subsequent to a previous enrolment, the member must pay the current annual assessment fee of $20.00, in addition to the regular assessment fee of $20.00 for each missed year, the late enrolment fee $10.00 for each year in which the female was not enrolled for a total of $30.00 for each missed year. All services offered in the years in which the female was not enrolled would be offered to the female once it has become enrolled. GST will be applied to all fees charged.

Example:  If the female was not enrolled for the year 2001, however, was enrolled in 2002 by March 15^th, the accumulated fees would be $21.40 (2001) plus $10.70 (2001) plus $21.40 (2002) for a total of $53.50. This example includes the GST.

 2004 Annual General Meeting Quebec City, Quebec

Amendment # 3 proposed by the board of directors

Article XXIII part 5 (page 24)

If the female was never enrolled by the current owner, regardless of her age, the enrolment fee is $20 if enrolled by the deadline of March 15^th for spring calving females and August 15^th for fall calving females of the current year. If the enrolment is to include previous year’s services, then the late fee of $20 plus the enrolment fee of $20 will apply for each year previous to the current year.

Amended to include the following sentence:

The maximum penalty that will be assessed for late or missed years will be $40.

2009 AGM Russell, Manitoba

8. There will be a late enrolment fee of $20.00 applicable to females enrolled after the submission deadline which is March 15^th for spring calving cows and August 15^th for fall calving cows in each year.

The late enrolment fee will also be applicable to animals that were previously enrolled and dropped from enrolment.  The late enrolment fee will be in addition to the regular assessment fee of $25.00.

To be replaced with –

There will be a late enrolment fee of $25.00 + GST applicable to females enrolled after the submission deadline.

The late enrolment fee will also be applicable to females that wish to re-enter enrolment for prior year(s). 

8. The maximum penalty that will be assessed for late or missed years will be $40.00 + GST will be applied to all fees charged.

To be replaced with -

8. The maximum penalty that will be assessed for late or missed years will be $50.00 +

   GST.