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Canada’s Feedlots Facing an Uncertain Future

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Canada’s Feedlots Facing an Uncertain Future

The coronavirus has taken a huge toll on the North American meat industry. As the virus continues to claim the lives of workers and workplace conditions become unsafe, many meat processing plants simply haven’t been able to adequately staff their facilities. Subsequently, many plants and feedlots — including leading brands in Alberta — have temporarily shut down operations.

Other big names that haven’t experienced outbreaks in their facilities have managed to remain open or at least reopen and function at a lower capacity. However, even these cattle feedlots and processing plants are facing an uncertain future as the pandemic drags on.

A Dip in Demand

In addition to facility outbreaks, a dip in demand for pork, poultry and beef has also resulted in major setbacks for feedlots and slaughterhouses. Since officials issued stay-at-home orders three months ago, restaurants and butchers haven’t been ordering as much meat from big-industry meat processors. Instead, with no guests to serve or customers to whom they might sell prime cuts, these businesses have dramatically cut their orders.

Of course, the meat industry wasn’t expecting this sudden decrease in demand. As cows continued to birth calves and inventory built up in feedlots, these companies were left with no other choice than to cull thousands of animals per day and discard the carcasses. Obviously, this represents a massive amount of waste as well as a huge loss of profit.

Selling Calves

Many small farmers and large industrial developments also worry they’ll lose money this fall when it comes time to sell calves. These cow-calf operations usually generate a decent amount of revenue when the economy is good. In light of recent events, however, market conditions aren’t exactly prime for selling calves.

Moreover, as feedlots reach and exceed maximum capacities, the animals will most likely become more anxious. This increase in stress levels will negatively impact their immune systems and, ultimately, the quality of meat that comes from them. Consequently, this fall’s herd may not be as healthy as the last, meaning they’ll sell for much less and leave feedlots and meat processors in the red.

Assistance and Adjustments

Early last month, the Canadian government announced it would provide $252 million in federal assistance to the agri-food sector. The vast majority of this federal aid will go to processing plants in hopes of better-protecting workers and helping facilities function at full capacity once again. Still, as long as demand is low, it’s unlikely the industry will bounce back quickly — even with financial assistance. At best, this money will help keep the industry afloat until restaurants and eateries fully reopen.

Additionally, meat processing plants that have remained open or resumed operations are beginning to consciously cut their inventory and production output to meet the decrease in demand. While this will help the meat industry, it may cause issues for fast-food chains and restaurants that may experience shortages as a result.

Is the Worst Yet to Come?

Over the past few weeks, some major meat processors and cattle feedlots have begun to reopen. Already, they’re back to processing 60,000 cattle per week. However, prices aren’t rising for consumers, thus showcasing the resiliency of the Canadian food system. In the coming months, bottlenecks should stop and business should be able to return to normal — as long as a second and third wave of coronavirus cases don’t sweep the nation.

In the future, the meat industry might invest more in expanding local and regional food supply chains. This way, if Cargill, National Beef, JBS and Tyson — which own more than 80% of the beef supply — shut down again, small ranchers could provide meat for their communities. Thus, the industry wouldn’t face such an uncertain future if another pandemic were to occur.

Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

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Agriculture

Farmers Take The Hit While Biofuel Companies Cash In

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From the Frontier Centre for Public Policy

By Joseph Fournier

Canada’s emissions policy rewards biofuels but punishes the people who grow our food

In the global rush to decarbonize, agriculture faces a contradictory narrative: livestock emissions are condemned as climate threats, while the same crops turned into biofuels are praised as green solutions argues senior fellow Dr. Joseph Fournier. This double standard ignores the natural carbon cycle and the fossil-fuel foundations of modern farming, penalizing food producers while rewarding biofuel makers through skewed carbon accounting and misguided policy incentives.

In the rush to decarbonize our world, agriculture finds itself caught in a bizarre contradiction.

Policymakers and environmental advocates decry methane and carbon dioxide emissions from livestock digestion, respiration and manure decay, labelling them urgent climate threats. Yet they celebrate the same corn and canola crops when diverted to ethanol and biodiesel as heroic offsets against fossil fuels.

Biofuels are good, but food is bad.

This double standard isn’t just inconsistent—it backfires. It ignores the full life cycle of the agricultural sector’s methane and carbon dioxide emissions and the historical reality that modern farming’s productivity owes its existence to hydrocarbons. It’s time to confront these hypocrisies head-on, or we risk chasing illusory credits while penalizing the very system that feeds us.

Let’s take Canada as an example.

It’s estimated that our agriculture sector emits 69 megatonnes (Mt) of carbon dioxide equivalent (CO2e) annually, or 10 per cent of national totals. Around 35 Mt comes from livestock digestion and respiration, including methane produced during digestion and carbon dioxide released through breathing. Manure composting adds another 12 Mt through methane and nitrous oxide.

Even crop residue decomposition is counted in emissions estimates.

Animal digestion and respiration, including burping and flatulence, and the composting of their waste are treated as industrial-scale pollutants.

These aren’t fossil emissions—they’re part of the natural carbon cycle, where last year’s stover or straw returns to the atmosphere after feeding soil life. Yet under United Nations Intergovernmental Panel on Climate Change (IPCC) guidelines adopted by Canada, they’re lumped into “agricultural sources,” making farmers look like climate offenders for doing their job.

Ironically, only 21 per cent—about 14 Mt—of the sector’s emissions come from actual fossil fuel use on the farm.

This inconsistency becomes even more apparent in the case of biofuels.

Feed the corn to cows, and its digestive gases count as a planetary liability. Turn it into ethanol, and suddenly it’s an offset.

Canada’s Clean Fuel Regulations (CFR) mandate a 15 per cent CO2e intensity drop by 2030 using biofuels. In this program, biofuel producers earn offset credits per litre, which become a major part of their revenue, alongside fuel sales.

Critics argue the CFR is essentially a second carbon tax, expected to add up to 17 cents per litre at the pump by 2030, with no consumer rebate this time.

But here’s the rub: crop residue emits carbon dioxide, methane and nitrous oxide whether the grain goes to fuel or food.

Diverting crops to biofuels doesn’t erase these emissions: it just shifts the accounting, rewarding biofuel producers with credits while farmers and ranchers take the emissions hit.

These aren’t theoretical concerns: they’re baked into policy.

If ethanol and biodiesel truly offset emissions, why penalize the same crops when used to feed livestock?

And why penalize farmers for crop residue decomposition while ignoring the emissions from rotting leaves, trees and grass in nature?

This contradiction stems from flawed assumptions and bad math.

Fossil fuels are often blamed, while the agricultural sector’s natural carbon loop is treated like a threat. Policy seems more interested in pinning blame than in understanding how food systems actually work.

This disconnect isn’t new—it’s embedded in the history of agriculture.

Since the Industrial Revolution, mechanization and hydrocarbons have driven abundance. The seed drill and reaper slashed labour needs. Tractors replaced horses, boosting output and reducing the workforce.

Yields exploded with synthetic fertilizers produced from methane and other hydrocarbons.

For every farm worker replaced, a barrel of oil stepped in.

A single modern tractor holds the energy equivalent of 50 to 100 barrels of oil, powering ploughing, planting and harvesting that once relied on sweat and oxen.

We’ve traded human labour for hydrocarbons, feeding billions in the process.

Biofuel offsets claim to reduce this dependence. But by subsidizing crop diversion, they deepen it; more corn for ethanol means more diesel for tractors.

It’s a policy trap: vilify farmers to fund green incentives, all while ignoring the fact that oil props up the table we eat from.

Policymakers must scrap the double standards, adopt full-cycle biogenic accounting, and invest in truly regenerative technologies or lift the emissions burden off farmers entirely.

Dr. Joseph Fournier is a senior fellow at the Frontier Centre for Public Policy. An accomplished scientist and former energy executive, he holds graduate training in chemical physics and has written more than 100 articles on energy, environment and climate science.

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Agriculture

Bovaer Backlash Update: Danish Farmers Get Green Light to Opt Out as UK Arla Trial Abruptly Ends!

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Sonia Elijah investigates Sonia Elijah

In a pivotal shift, Denmark’s Veterinary and Food Administration has issued new guidance: Farmers can immediately suspend Bovaer administration if they “suspect” it poses risks to herd health. On the heels of the Danish announcement—the major UK trial of Bovaer on 30 Arla Foods farms has abruptly ended amid health fears.

The Mandate Cracks: Farmers Given the Green Light to Opt Out

On November 5, 2025, Denmark’s Fødevarestyrelsen (Danish Veterinary and Food Administration) issued a press release and accompanying guidance clarified that farmers (specifically the herd manager, or besætningsansvarlige) could immediately exempt individual cows or entire herds from the mandatory Bovaer use if they suspected it was causing or exacerbating health issues, prioritizing animal welfare under existing regulations.

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This was in response to surging reports of cow illnesses since October 1, where farms with over 50 cows have been mandated to use the synthetic additive, Bovaer (containing 3-nitrooxypropanol), developed by DSM-Firmenich. If the farms do not comply, they face heavy fines.

Bovaer Backlash: Danish Cows Collapsing Under Mandatory Methane-Reducing Additive

·
Nov 3
Bovaer Backlash: Danish Cows Collapsing Under Mandatory Methane-Reducing Additive
Article updated: November 4
Read full story

The guidance emphasized that exemptions apply to cases of feed-related metabolic disorders (e.g., fatty liver, milk fever, or rumen issues) and require documentation via a “tro- og loveerklæring” (declaration of good faith) on LandbrugsInfo, with veterinary consultation recommended for severe cases. No fines would apply for such welfare-based pauses, though farmers must still meet methane reduction goals via alternatives like increased feed fat. This effectively gave the “green light” for opting out on welfare grounds.

Reports surged of Danish dairy farmers unilaterally halting Bovaer administration, accusing the government of “poisoning” livestock to meet climate targets.

A November 3, 2025, article in LandbrugsAvisen (Denmark’s leading agricultural newspaper), quoted veterinarian Torben Bennedsgaard from BoviCura (a specialized cattle health advisory service closely tied to Danish dairy producers). He stated: “Every other farmer has problems with Bovaer.”

“Bovaer is a proven, effective and safe solution”

A spokesperson for DSM-Firmenich, the company that developed Bovaer, told Agriland, that “animal welfare is our highest priority”. They went on to state: “We are actively engaging with the relevant organisations to ensure that all these concerns are fully investigated and properly addressed..In previously reported cases, Bovaer was not identified as a contributing factor to the health concerns raised…Bovaer is a proven, effective and safe solution that has been successfully used for over three years by thousands of farmers in over 25 countries.”

UK Ripple Effects: Arla Trial Abruptly Halted

 

On 7 November, the BBC reported that the major UK trial of Bovaer on 30 Arla Foods farms concluded earlier than planned amid “farmer health concerns” for cows, echoing Danish reports. It stated: ‘Bovaer is now the focus of an investigation in Denmark after farmers raised fresh concerns but manufacturer DSM-Firmenich said the additive was “proven, effective and safe.”’

Arla, which supplies major retailers like Tesco and Aldi, is now reviewing data before deciding on wider rollout. The trial aimed to cut methane by 30% but faced criticism for lacking transparency on animal impact.

Jannik Elmegaard, of the Danish Food and Veterinary Administration, told the BBC: “They very aware that some herd owners have reported animals showing signs of illness after being fed with Bovaer” but it was “unclear how many cows were affected”.

Last year, I reported on the UK’s Arla trial—whilst digging through various safety assessment reports on Bovaer, I came across several troubling findings and anomalies.

BREAKING: Methane-Reducing Feed Additive Trialled in Arla Dairy Farms

·
November 28, 2024
BREAKING: Methane-Reducing Feed Additive Trialled in Arla Dairy Farms
On November 26th, Arla Foods Ltd. announced via social media their collaboration with major UK supermarkets like Tesco, Aldi, and Morrisons to trial Bovaer, a feed additive, aiming to reduce methane …
Read full story

In a public rebuttal, Frank Mitloehner, Professor of Animal Science at UC Davis and Director of the Clarify Center for Enteric Fermentation Research, posted on X ”Hogwash!”—dismissing viral claims of Bovaer-related cow health issues in Denmark by highlighting his lab’s ongoing research and widespread U.S. usage data.

The green light in Denmark is not a mere victory—it’s a damning admission that the emperor’s new feed has holes big enough for a whole herd to escape through.

As Arla licks its wounds and DSM-Firmenich doubles down on “proven safe,” the real trial begins: can climate crusaders stomach the science when it bites back?

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