Two producer groups are proposing a long-term bailout package for the beef industry worth more than $1 billion in five phases.
The program asks for partial compensation to producers for the loss of value of cattle since international trade halted May 20 because of one case of bovine spongiform encephalopathy.
The Agricultural Producers Association of Saskatchewan and the Western Stock Growers Association of Alberta sent the proposal to provincial governments and hope to gain meetings with federal ministers including Ralph Goodale and members of the Senate on Oct. 8 and 9. The proposal is also being presented at the Canadian Federation of Agriculture’s safety net committee meeting.
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“We’re inviting all industries to either be there or call in so we get a unified stand on something, be it this or a configuration of this,” said APAS president Terry Hildebrandt.
So far, livestock industry proposals for help have been turned away because the federal government prefers to deliver money through its agricultural policy framework safety net system.
The APAS proposal focuses on moving older animals to get some cash flow to producers, as well as helping them maintain youthful herds.
The first phase addresses cash needs of producers with a floor price for culls of $200. The salvage price would be capped by the price of offshore beef used in grinding and processed meats, so processors would not switch back to the cheaper imports. Many groups are suggesting the cull cow and bull meat could replace meat imported from Australia, New Zealand and South America.
The program also calls for immediate disaster relief of $50 for every beef cow, $100 for each dairy cow and $330 for every breeding bull held in a herd as of May 20. The program cost is estimated at $408 million.
The second phase is a similar plan modelled after the federal-provincial BSE recovery program offered for slaughter cattle. It suggests extending aid to the cow-calf sector with payments based on 90 percent of the revenue shortfall from actual sale price to a reference price based on American cash prices for each class of animal. A floor price could be established as well. Costs for a recovery program are estimated at $900 million.
The last three phases call for more slaughter facilities for animals older than 30 months of age, as well as developing new beef products from older animals, a long-term strategy dealing with food safety and surveillance of cull animals, as well as a longer term financing for cattle producers over the next 10-20 years.
