One of Western Canada’s largest feedlot operators is preparing to lock the gates.

Each year a number of Saskatchewan producers send animals into Alberta for finishing.

Western Feedlots in Alberta announced yesterday it will continue to feed and market the cattle currently in the system, but will not be taking on any new animals.

Dan Darling, President of the Canadian Cattlemen’s Association says the feedlot industry has been struggling. Darling said, “It is a concern, we may get more feed lots, that may be not necessarily close down but back off on the number of cattle that they buy. Certainly, we're seeing less money being spent on replacement cattle right now, and that’s hurting the cow-calf sector as well, but that’s what you expect when the prices at the packers are giving is less than what the feedlots have into cows.”

He notes it will have a negative impact on the industry given that Western fed about 4% of the cattle on feed in Canada.

Western will continue to feed and market the cattle currently in the system but will not be taking on any new animals.

Cattle Market Analyst Anne Wasko with Cattle Trends says the cattle feeding climate over the past year has been disastrous. She said,  “So far this year, if you're just on the spot market, than an average feeding lost would be about $300 per head, and of course these losses started in the 3rd quarter of last year, so it goes, of course, hand in hand with the record high prices that feeder cattle were bought at last year, and of course the resulting market down over the past year have resulted in these negative margins.”

In making the announcement Western cited the high risk/low return environment in cattle ownership, as well as a poor political and economic environment in Alberta.