The banks are bullish on the beef industry according to the President of Beef Farmers of Ontario.
That's a good sign for the future says Bob Gordanier, but that isn't to say there aren't problems.
Prices for their products are lower than a year ago, but then a year ago prices were at record highs.
In fact Gordanier says the prices producers are getting now are lower than the break even point.
He says one problem is a reduction in demand for beef world wide. One issue there is prices in the supermarket for beef are high.
Gordanier says that's because the herd is steeply declining. Fewer products mean higher prices. So the BFO is trying to increase the herd numbers, especially in the north because the price of land in the south is so high.
Having said all that, Gordanier says the banks are still willing the lend producers money.
"It tell me the banks are saying that the future of the cattle industry in Canada, in Ontario, the banks are saying the future is good or the banks would not be wanting to loan us money," says Gordanier.
Gordanier was a guest speaker at Beef Day at Grey Bruce Farmer's Week in Elmwood.
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Gordanier says the banks are bullish on beef because they're willing the lend producers money.
[audio mp3="http://blackburnnews.com/wp-content/uploads/2016/01/BFO-Gordanier-1.mp3"][/audio]
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Gorandier says the effort to increase the herd in Ontario is focusing on expansion in the north because the price of land in the south is so high. [audio mp3="http://blackburnnews.com/wp-content/uploads/2016/01/BFO-Gordanier-2.mp3"][/audio]