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ABP holds zone meeting in High Prairie
Mac Olsen
for Spotlight
The Canadian Cattlemen’s Association and Alberta Beef Producers organization are working on the “regulatory burden” related to BSE, as politics has displaced science with border closures.
It was one of the issues Kevin Boon discussed during the ABP zone meeting at the Royal Canadian Legion in High Prairie Nov. 5. Boon is the ABP vice-chairperson as well as a member of the CCA executive and is critical of the federal government’s definition of Specified Risk Material.
“BSE is an animal health problem, not a food safety issue,” says Boon. “Very few deaths have resulted from BSE.”
The World Organisation for Animal Health has determined BSE is only found in the spinal chord, brain and nerve endings of the livestock which, Boon says, is sufficient to be put into the list for the SRM definition. However, the federal government has expanded the list much further than other countries and placed stricter requirements for disposal, putting Canadian beef at a competitive disadvantage, he adds.
While the regulatory burden is high, he also says it’s important for producers to get their cattle to the 30-month age verification requirement, which could encourage Japan to accept more Canadian beef. Japan will take only the lowest amount of livestock available in Canada in any given period, he adds.
However, Guy L’Heureux, a livestock producer in the High Prairie area, does not support the mandatory age verification requirement.
“I think it would have been effective if it … was a choice, not mandatory,” says L’Heureux. “If it was voluntary, I think we would’ve had a much better chance than we do now.”
His costs have increased and profits have gone down because of the requirement. He also makes a gloomy prediction about the future of the industry.
“The only thing that’s going to change is, the cattle numbers are going to go down because of the age of the rancher. In another five years, a lot of us will be out of business, we’ll be too old to ranch.”
Another issue affecting Canada is the livestock trade battle with the U.S. Boon discussed the mCOOL requirement, known as mandatory Country-of-Origin Labelling, imposed by the U.S. government. It came into effect in August 2008 and the Canadian government is requesting the World Trade Organization hear a complaint against the U.S.
American packers no longer accept Canadian cattle due to the requirement of separating them out when they arrive in the U.S. It stems from the four-label system Canadian producers have to use:
* Label A is for cattle born, raised, fed and slaughtered in the U.S.
* Label B is for cattle born in Canada, but fed and slaughtered in the U.S.
* Label C is for cattle born and fed in Canada, but slaughtered in the U.S.
* Label D is for all cattle born, fed and slaughtered in Canada.
A WTO dispute panel is being established to deal with the case.
“We feel we have an extremely strong case,” says Boon, “and that we have a very good chance of winning.”
However, it could take two years for a decision is handed down. Meanwhile, the Alberta Government’s Beef Information Centre is developing a generic marketing campaign targeting specific ethnic groups in the U.S., such as Hispanics in California who prefer beef products other than American.
One attendee asked why the focus is on the U.S. and commented it should be directed more at eastern Canada.
But Boon says, due to Canada’s higher labour and transportation costs, it’s cheaper to send livestock to the U.S. for slaughter and then re-import it back to Canada.
All does not look grim for the Canadian livestock industry, however. Boon says trade with Mexico is good and, for the most part, Mexico has been a good ally with Canada in trade disputes with the U.S.
Another attendee asked if the future supply of livestock is being studied. Boon says, due to drought conditions, Canadian supplies have returned to 2002 levels, but also because of low profitability in the industry and some producers are getting out of the business.
Boon is also a proponent of expanding trade with other nations and points to the new federal secretariat for trade being formed. It would involve people from government and the industry, including Agriculture and Agri-Food Minister Gerry Ritz. Foreign governments prefer to meet and negotiate directly with the highest levels of the federal government instead of provincial governments, he says.
Some livestock producers in the region, nonetheless, are sceptical about foreign markets opening to Canada. Al Billings, the chairperson of the meeting, says there are “huge problems” opening international markets and the U.S. is still Canada’s biggest market.
But Billings agrees with the need for the secretariat.
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