The sales agency for cull cattle and bob calves was established in 1987. The sales methods used have evolved over the years.

On January 2, 2006, in conjunction with the acquisition of Levinoff-Colbex enterprises, the sales agency implemented a new carcass-based system for the sale of cull cattle.

The price of cull cattle is determined, in part, on the value of the meat and adjusted by price differential tables based on the grading of the live animal and its carcass weight. This results in the producer receiving a price that reflects the real value of his product.

Bob calves are sold either through public auctions (90%) or directly to producers of grain-fed or milk-fed calves who have signed an agreement in this regard with the Federation (FPBQ) (10%).

Auction network

In 2002, the FPBQ and Gestion S.T.M. inc. created Réseau Encans Québec (REQ), a network of auctions that market 80% of cattle sold through the auction system in Quebec.

This partnership has contributed to a reorganization by reducing the weekly number of sales and consolidating volumes, so as to attract the largest possible number of buyers and ensure greater competition. Auctions that are not part of Réseau Encans Québec are bound by an agreement with the FPBQ.

Levinoff-Colbex

The BSE crisis affected the cattle industry deeply, particularly the marketing of cull cows and heifers. The closing of borders caused a dramatic drop in prices in Canada, with the disappearance of both U.S. buyers and a significant export market. In response to the low market prices, cull cattle were kept at the farm, causing additional costs for producers.

Given the collapse of markets and lack of competition among cull cattle buyers, producers tried several measures in an effort to obtain acceptable prices.

In 2004, the FPBQ obtained a favourable decision from the Régie des marchés agricoles et alimentaires du Québec (RMAAQ) which gave the Federation the authority to set a floor price. However, after a failed attempt to apply it in November 2004, producers blockaded the entrance to the Levinoff-Colbex plant, after which a history-making agreement was reached. Cull cattle producers became owners of the facility!

With its 350 employees, Levinoff-Colbex, has a slaughter capacity of more than 4000 cull animals per week. In 2008, Levinoff-Colbex generated annual sales of $139 million.

Thanks to this acquisition, producers are assured of selling their production and of receiving the optimal price for their cull cattle, while, in the medium term, recovering a portion of the profits from the slaughtering and processing activities.

For more information on market prices, refer to the Price-Info section.

Pierre Ruest,
Chair of the Marketing Committee for Cull Cattle and Bob Calves

"The priorities for 2010-2011 could be summed up in two words: transport and marketing. The cull cattle and bob calves committee recommends an optimal organization of transportation and more efficient marketing of dairy calves that will obtain a fair price."