Eweville Station: Feeding Lambs in Grey County
by Beth Kyle

That was lucky” Jay Lewis admits with a bit of a smile, referring to a shipment of lambs sent to the US on May 20th. The load of lambs, which barely slipped under the wire of the US border closure to Canadian ruminants, was the last in a series of spring shipments to the States that left Jay’s 2000-3000 head feedlot relatively empty. With ~45% of his lambs being shipped south and a barn of 125lb plus lambs ready for the US heavy lamb market, a border closure would have been a heavy blow for the Grey County farm.

A different international situation initially eased Jay and Penny Lewis into shipping directly to a packer in the US. Part of the fall-out from September 11, 2001 was a temporary drop in the lamb market. By the time demand recovered Jay realized that he had a number of lambs that were too heavy for the Ontario market. Attempting to cut his losses and make the best of a bad situation led him to investigate the heavy lamb market in the US. It was an arrangement that obviously worked. Jay estimates that approx. 20% of the 37,000 lambs shipped from Ontario to the US in 2002 came from his feedlot, Eweville Station.

There are many perks to shipping to the US. The higher US dollar of the past few years and high lamb prices in the US over the last year have made exporting Canadian lambs attractive for both Canadian producers and US buyers. As well, lambs that go through a US plant are graded and carcass quality information can be obtained for each lamb. Jay also finds that the quality and quantities demanded from his buyer in the US are very consistent. However, as the recent border closure highlights, dealing with the US brings its share of uncertainties as well. In addition to the border closure due to Canada’s lone case of BSE, the drop in the US dollar in recent months has hurt profitability. Potentially most devastating is the prospect of country of origin labeling (COOL) in the US. In the coming months, COOL may require all cattle, sheep and swine products to be labeled regarding the birth country of the animal. Jay has had indications from his US buyer that importing Canadian lambs for slaughter will not be an option if COOL becomes a requirement. The plant would need a separate kill line strictly for imports. This would simply be too expensive and according to Jay would likely close the border permanently to Canadian lamb. Although losing access to the US would be difficult, it is not the only, nor the original, marketing option for the feedlot.

Eweville Station is a division of Lewis Farms, which consists of cash cropping, feed production for on-farm use, a 450-ewe operation and a cow/calf operation. Although each aspect of the enterprise is owned and operated separately, Jay, his father Don and brother Anson share equipment and other resources. The feedlot operation came about gradually over the years. Don ‘always had sheep’ and the farm began buying feeder lambs in 1997 to supplement seasonal cash cropping. The feedlot began serious expansion approximately four years ago with shipments of lambs directly to New Market Meat Packers in Newmarket Ontario. Shipments to New Market started gradually with 30-40 lambs per week with the remainder going to auction. Eventually all lambs were being shipped directly to the packer. Jay finds this arrangement easier to deal with than the uncertainty of fluctuating prices. Although he may miss the market highs, the price is negotiated and both parties know what to expect before the lambs change hands.

With increasing demand from New Market it became evident that the feedlot could support expansion and a new barn was opened in September 2001. The new three-sided barn has six pens divided along their length by custom-made grain feeders. It is equipped with a shearing platform, automatic feeding system, state-of-the-art handling system, and viewing mezzanine for tours. Between the new and old facilities there is room for 2000-3000 head of lambs totaling approximately 16,000 head per year. To fill the barn, Jay buys approximately 80% of his lambs from the West, 18% from Ontario and 2% from Quebec. Weight varies anywhere from 60lb lambs to 150lb lambs that only require finishing before being resold. Jay prefers to buy locally when possible. As with the feedlot to packer arrangement, the direct from producer to feedlot pricing arrangement is more consistent and less uncertain than auctions. In 2002, when lamb prices were low, producers began to see the feedlot as a reliable marketing option. However, when auctions prices are high, some producers are inevitably lured back to the sales.

Even with the border still closed Jay has been buying lambs and is now nearly back to full capacity. Looking down across the feedlot pens from the elevated viewing area, lambs of a wide variety of breeds and body types are evident. This suits Jay perfectly. Not all lambs will finish at the weight needed for the heavy lamb market in the US. Lambs that finish at lighter weights are targeted for the Ontario market or specialty markets in the US. According to Jay ‘every lamb has a purpose’ and having a range of finishing weights helps spread the risk over a number of markets.

When it comes to animal management, Jay believes in consulting specialists whenever possible. Ration formulation is completely left to Shur-Gain feeds in Holstein and the flock vet visits the farm once or twice per month to check for health concerns. Day to day feeding and health management of the lambs falls to employees Alan Capell and Chris Meulensteen.

After settling and adjusting in a separate pen, new lambs are typically shorn and sorted according to weight and market destination. Jay feels shearing is one of the most important elements in raising feeder lambs as it helps keep them cool and comfortable, to keep feed consumption high. With prices possibly on the rise, wool may also become a profitable byproduct. Lambs are provided free choice grain rations containing corn, oats and pellets, and limit fed chopped alfalfa haylage. The starter and finisher rations contain whole grains to decrease dust and to increase fibre intake. Typical average gain on this diet is approximately one pound per day.

Pens approaching market weight and finish are weighed once or twice per week to ensure that lambs are shipped at the optimum time. Without a good handling system frequent weighing would not be feasible and, although pricey, Jay feels his $14,000 scale is indispensable. The scale is equipped with a spring-loaded squeeze that is triggered by an electronic eye when a lamb enters the scale. The computerized scale and automatic drafting gate make weighing and sorting the lambs quick and easy. The scale and additional $6,000 (approx.) in gates and panels means two handlers can weigh a pen of 300 lambs in 45 minutes. The system is not only a huge time saver but is much easier on the lambs (not to mention the handlers) and helps maintain weight gain for lambs that are handled repeatedly.

Jay feels the lamb industry in Ontario is growing and that there is room for more feedlots in the province. However, he cautions running a feedlot is not for everyone. It takes time to learn how to meet the demands of each market, to know the system, and to handle the uncertainty of orders from buyers. Last minute calls from buyers for specific numbers and types of lambs are a large part of the business and keep Jay tied to the operation. Jay credits his wife Penny for her patience and understanding about the farm hours and lack of family vacations. Sons Blake and Cory have few qualms about the hours and, at ages 5 and 3, have already been known to lend a hand unloading lambs.

Even with the uncertainties facing the lucrative export market, Jay sees a bright future for the lamb industry and a huge potential for filling a larger percentage of the Ontario market currently held by imported lamb. As he says, ‘I think we can take on New Zealand. Id like to try anyway’.