Governments and the cattle industry are close to completing plans for a national BSE program that would pay producers to withhold cattle from the market, said the executive vice-president of the Canadian Cattlemen’s Association.
“We looked at immediate set aside options to take some of the fat cattle that will be ready in the next month and delay them for three or four months when supply of fat cattle will be lower,” said Dennis Laycraft after a Aug. 6 meeting in Ottawa with the cattle industry and members of the provincial and federal government.
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The combination of reducing the number of cattle for sale and the already reduced number of cattle on feed, will hopefully push cattle prices higher until proposed increased slaughter capacity becomes available, said Laycraft.
The program would be designed to allow the cattle held from slaughter back into the cue. Some kind of payment to cover the cost of holding the cattle was also discussed, he said.
“There’s advancing federal and provincial discussion but the exact mechanism has yet to be worked out,” he said.
Officials at the meeting also looked at a program that would set aside a “very significant portion” of this year’s calf crop until 2006. While details are not final the program may target heifers. As part of a compensation package, the heifers would not be eligible for slaughter until 2006.
Combined with that is a need for a better age verification system, like a unique identification, so producers who kept animals back would not be stung by the rule that doesn’t allow cattle over 30 months old, or cattle with 30-month teeth, to enter the U.S.
“It’s all in the works, nothing is in agreement.”
Laycraft said they are also looking at changes to the Canadian Agricultural Income Stabilization program that would allow more effective advances or some kind of loan guarantees.
Part of the package could include a payment for older cull cattle to be collected for the BSE testing program. Instead of being sent to market, they would be used for the surveillance system.
“Any discussion around culling was aimed at the older, mature animals. Really, it’s viewed as a last resort,” Laycraft said.
Ken Moholitny, assistant deputy minister with Alberta Agriculture, said the discussion focused around numbers of cattle and the capacity to slaughter them.
“We were looking at the gap between capacity and supply. What are some of the options of managing some of the inventory,” said Moholitny, who added there is no definitive plan, except for the agreement that it be national.
