EDMONTON – Beef producers may still be frustrated that their largest trading partner hasn’t fully opened its doors to Canadian product, but they can take comfort that other countries are reopening their borders, says the head of Canada’s beef export organization.
The number of countries that still have banned Canadian beef and cattle because of the discovery of bovine spongiform encephalopathy in May has dropped from 34 to 25, said Ted Haney, president of the Canadian Beef Export Federation.
While Canadian attention has been focused on the United States, cattle and government officials have been working behind the scenes in other markets.
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Brian Evans, chief veterinarian with the Canadian Food Inspection Agency, travelled to China this week to inform and update government officials on Canada’s discovery of BSE and the CFIA investigation.
“We want to make our case with them to be accepted as a minimal risk country in an effort to get them to reopen their trade,” he said.
Some members of the team will also continue on to Taiwan, Hong Kong and Japan in an attempt to get all countries to clarify the rules around the importation of beef that has only a minimal risk of BSE.
Here is what has been happening in other beef-importing countries.
Japan: Contrary to what federal agriculture minister Lyle Vanclief said, Japan is clear about what it wants Canada to do before allowing beef back in, Haney told rural municipal officials at a BSE update last week.
Haney said Japan wants Canada to announce an enhanced feed control system to stop any accidental feeding of ruminant meat and bone meal to other ruminants.
Officials in Japan are also asking Canada to establish enhanced surveillance policies, from the present 10,000 head tested to 30,000, 50,000 or 60,000 head, whatever level it takes to have a higher assurance of safety.
Haney told a group of Alberta Association of Municipal Districts and Counties councillors that Japan is saying “don’t come to us any more with proposals of what you might do in the future. Come to us once you’ve actually responded to the international review panel and then we’re in the position to discuss reopening the border.”
Haney doesn’t think the Japanese market will reopen before the end of the year, but there will be a resumption of trade in 2004 to traditional levels of 50,000-70,000 tonnes annually.
South Korea: When the export federation opened its office in 1995, there was an immediate demand for Canadian beef from 11,000 tonnes to the present 17,000. It hopes Canadian beef exports to Korea could be as high as 40,000-50,000 tonnes by 2005-10.
Haney said there is a possibility Korea may reopen its border, especially if the Organization Internationale des Epizooties, the agency that sets animal health standards, clarifies its rules and agrees Canada is a minimal risk for BSE.
“Korea has committed to the process and has given strong feedback to Canadian regulators,” said Haney. He believes there’s a possibility 2,000 tonnes could be shipped to Korea by the end of the year.
Since the border closed, Korea has felt constrained by Japan, yet has still made decisions independent of Japan. Korea released for sale all Canadian product still held in a bonded warehouse as of May 20.
“It indicated a stronger willingness to resume trade,” Haney said.
Taiwan: When the export office was opened in 1996 only 1,000 tonnes were imported. It has since jumped to 4,000 tonnes. The borders may be reopened by the end of October or early November and another 1,500 tonnes of beef could move in before the end of the year.
“Taiwan has treated us very fairly,” said Haney.
The Taiwanese government allowed all Canadian beef products in transit on May 20 to arrive in Taiwan and be sold. Containers destined for other countries were diverted to Taiwan, received, cleared and sold.
“They provided flexibility. We think they’re friendly to resuming trade to Canada,” said Haney, who added Canadian officials would visit Taiwan at the end of October. That will be a meeting fundamental to the resumption of trade in that market, he said.
China: The CBEF office in China was opened with the knowledge it would be a long-term investment. China imports 100,000 tonnes of beef. In 2002, Canada exported 3,000 tonnes. Haney said the goal is to export 34,000 tonnes by 2010.
Mexico: Every Canadian farmer should give thanks to Mexico, the first country to indicate it wants to resume live animal trade, said Haney.
By announcing its desire to resume trade with Canada, Mexico puts at risk its markets to the United States. Not only has Mexico announced it wants to resume trade of live cattle, it also wants to resume trade of boneless beef, bone-in beef and offal in animals under 30 months.
“It’s a major outlet for us,” said Haney.
In 1997, Canada exported 6,700 tonnes of beef to Mexico. By 2002, exports had jumped to 76,000 tonnes, 20 percent of all Mexico’s imports. The day Canada lost access to Mexico, American beef prices to Mexico increased an average 25 percent and some cuts doubled in price.
“Mexicans believe they’ve been subjected to predatory pricing. They’re very annoyed at the U.S. We can thank the U.S. for a very welcome return to Mexico.”
Haney expects Canada to regain access to Mexico by the end of October and still reach last year’s 76,000 tonne beef export level. By 2005-10, exports are expected to rise to 100,000 tonnes.
On Sept. 10, Mexican secretary of agriculture Javier Usabiaga informed American secretary of agriculture Ann Veneman and Canadian agriculture minister Lyle Vanclief that the Latin American country wanted to import 15,000 dairy cattle for breeding and milking.
Not only did it give Canada a positive signal, but it gave the Americans more motivation to move quickly for the resumption of trade in all classes of beef products and various classes of cattle.
“Secretary Usabiaga deserves our thanks but also our sympathy. Anytime they make a decision to resume trade in Canadian beef, they put at peril, in some small way, the ability to export live cattle to the United States.”
In June, Usabiaga asked Veneman for a “comfort letter” that Mexico could import any range of Canadian beef product and it wouldn’t threaten Mexico’s animal health status or ability to export live cattle to the United States.
“They received verbal assurances on the phone, but the letter has never been delivered, nor do we expect it to be delivered,” said Haney.
Russia: Russia has given Canada a proposal to buy boneless beef from animals younger than 30 months and boneless beef from animals over 30 months of age who have been tested for BSE.
Russian inspectors will travel to Canada this month to look at three plants interested in accessing the over 30 month market.
Philippines: The Philippines has provided the ideal template for market access that the Canadian government hopes to replicate around the world, Haney said.
It has offered to resume trade with Canada for boneless beef, bone-in beef and offal products to all ages of animals subject to removing specified risk materials, which is now the Canadian standard.
The Philippines official offer said the CFIA has to specify a minimal risk for BSE according to OIE guidelines. Haney said Canada would change the wording at the beginning of October on how it will certify itself as minimal risk for BSE.
“That’s the template, which Canada will emerge as being able to export all that we can reproduce in all markets,” he said.
Trinidad, Tobago, Antigua, Barbuda and Jamaica: The Caribbean countries announced they would resume trade in boneless beef under 30 months. While they’re small markets, they help build a scorecard on Canada’s side, said Haney.
Others: Most African countries never placed a ban on Canadian beef. Meat bound for South America was diverted to the Ivory Coast.
Poland and Hungary never banned Canadian beef products, but were not Canadian traders before either. They have agreed to accept Canadian offal products.
