'The further evolution of the bison marketing structure and increasing consumer demand should have a positive impact on the continued growth of the bison industry.'		Canadian Bison Industry Continues To Grow With the transition of the bison industry from a ”breeding” to a “meat” market and despite the impact of several consecutive droughts and the impact of BSE, the Canadian bison industry continues to grow The Numbers In 1996 when the first census of the bison industry was taken, there were just over 45,000 bison on 745 farms. That had grown to an estimated 145,000 in 2,000 on almost 1900 farms as is indicated in the following table.  Today, although the impact of drought and the consequences of BSE have forced producers to exit, low bison prices over the past three years have encouraged others to enter the industry. The CBA estimates that there were over 230,000 bison on about 1900 farms as of December of 2004 – an annual compound growth rate of about 20% since 1996. With the 2005 calf crop, it is estimated that there are between 270,000 and 290,000 bison on Canadian farms. More precise numbers will be provided by the 2006 census.   The bison industry continues to grow with the provinces of Alberta and Saskatchewan demonstrating the most rapid growth. The droughts of the early part of this century as well as the consequences of BSE may have slowed growth and likely affected the provincial distribution of bison populations. Bison Population and Bison Farm Numbers – 1996 and 2001 Census   # Of Head 1996 # Of Farms 1996 # Of Head 2001 # of Farms 2001 British Columbia 6,246 57 8,964 98 Alberta 22,782 334 79,821 950 Saskatchewan 7,006 175 34,781 562 Manitoba 4,621 73 13,437 157 Ontario 2,344 46 3,755 58 Quebec 2,236 56 4,192 58 Maritimes n/a n/a n/a 4 Total 45,235 745 144,950 1,887 Source: Statistics Canada (Agricultural Census), 2001

Slaughter Capacity and Slaughter Activity
Over the last decade, the infrastructure to serve the industry has also evolved.  There are presently ten federally certified plants (6 west, 4 east) of which three are EU certified  (2 west and 1 east) to slaughter bison.  Of the federal plants, 5 are smaller but are an important part of the bison slaughter capacity in Canada. The EU certified plants in Alberta and Quebec custom process as capacity permits while the British Columbia plant custom slaughters for the EU markets. There are a number of provincially certified plants that slaughter bison and increased bison slaughter during the BSE crisis. 

Additional federal slaughter capacity is planned for Alberta. Provincial bison slaughter capacity has also increased. This is being complemented by access to U.S slaughter capacity including an EU certified plant in North Dakota. As is indicated in the following table, bison slaughtered at federally and provincially certified plants has increased by about 30% annually since 2001. In 2004, a total of 28,276 bison were slaughtered in federal and provincial slaughter plants of which over 80% has been slaughtered in federal plants in recent years. Prior to May 2003, a number of bison, which were sourced from Canada, would have been slaughtered in the U.S.

                                          Source: Red Meat Section /Agriculture and Agri-Food Canada

Live Bison Trade

Over the past decade, exports of live bison reached a high of 4,490 in 1999 and stopped in May 2003 with the discovery of BSE in Canada. The U.S was the major destination of live bison with small numbers moving infrequently to Europe.  Exports of live bison to the U.S. recommenced in August 2005.

Of the live bison exported, a majority was from the province of Manitoba. It is expected a significant number of these bison would have been shipped to slaughter in North Dakota.  Because live bison is shipped to the U.S. through one border crossing in each Saskatchewan and Alberta, regional source is uncertain.

With respect to imports of bison from the U.S. CFIA data indicates that from 1989 to 2003 a total of 24,479 bison were imported from the U.S. 1998 was the busiest year for exports when 5,508 animals were exported from the U.S. into Canada.

                         Source: Canadian Food Inspection Agencies

Bison Meat Trade
As is indicated below, exports of boneless bison products have grown over the past three years – both in terms of volume and value. The U.S. market volumes have grown significantly. This can be attributed to exchange rates, the quality of the Canadian product, and the marketing initiatives of North American marketers since the discovery of BSE and until recently, the closure of the border to live bison.  The European market has been stable but has potential to grow. The EU did not close its market to Canadian Bison when BSE was discovered in Canada with exports being affected by a 20% tariff on bison meat.

* Other includes countries that have imported bison products over the last four years and includes: Hong Kong, Faeroe Islands, Netherlands Antilles, Japan, Belgium, Macu, Netherlands, Luxembourg, Denmark, Cuba, Swaziland, United Kingdom, Italy, Saint Lucia, St. Pierre-Miq.

 In addition to boneless cuts, bone-in cuts ave also been exported. In terms of volume and dollar amounts, levels are insignificant. There have been small amounts of bison products exported from the U.S. into Canada as indicated in the following table.

                        Source: Agriculture and Agri-Food Canada

Bison Prices

The benchmark price for bison today is the price of grade  “A” finished bison bulls less than thirty months of age. As indicated in the following table, bison prices reached a high of $3.00 per pound in 1999. The shift from the “breeder” market during a period when the domestic bison meat market was developing combined with the impact of several years of drought and the consequences of BSE drove the price of bison down to about $1.25 per pound in 2003 and the early part of 2004. Since that time the prices have moved up to about $1.75 per pound hot hanging weight.

These prices have been paid for bison bulls grading “A” under 30 months of age and moving to markets in the U.S. and Europe. The markets for bison over thirty months as well as heifers (Do not fit well within the bison carcass grading program) are discounted by amounts of up to 50% depending on market conditions.

Synthesis
Historical data indicates that the bison industry has grown rapidly in Canada. This rapid growth outpaced the development of the supporting infrastructure. The inadequate infrastructure combined successive years of drought as well as the consequences of BSE have had a negative impact on bison prices. Recent developments with expansion of slaughter capacity as well as the further evolution of the bison marketing structure and increasing consumer demand should have a positive impact on the continued growth of the bison industry.