MONTREAL – Canada’s cattle producers, resolutely opposed to most government subsidies in their industry, are about to lose one they would just as soon keep.
Within the next two years, the Canadian Beef Export Federation expects to lose most of the more than $1 million it receives in support from the federal government.
And by 1999, it must use up the several million dollars received from funds left over when federal income support programs for the industry were wound up.
“The loss of this government support will leave quite a gap in our funding,” Marvin Molzan, chair of the federation’s finance committee, said in an interview last week. “Cattle producers will have to decide if they want to continue funding this export effort. If they do, they will have to pay for it.”
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He said a likely source of money will be a national checkoff that industry leaders hope to organize by 2000.
It will collect money on each cattle sale, with the revenue to be used to fund research and promotion in the industry, areas now feeling the effects of government funding cuts.
Pressuring government
But Molzan also used a speech to the federation’s semi-annual meeting to suggest cattle producers should pressure governments to keep paying.
Since it was created in 1989, the beef exporters’ group has received money from Ottawa, Alberta and Saskatchewan governments, as well as the Alberta Cattle Commission and membership dues.
“Even though public sector funding is diminishing, I would encourage producer organizations to urge their respective governments to maintain and increase this effective funding to the federation,” he said. “I know in these days we’re not supposed to ask for more government help but in this case, I certainly think it would be appropriate.”
He said there also is a possibility that the Ontario Cattlemen’s Association will kick some money into the pot.
The group has an annual budget of more than $5 million for promotion of exports in Asian and Mexican markets.
On July 31, a six-year funding contract with Western Diversification Canada will expire.
Agriculture Canada and the foreign affairs department also have been supporters, sending approximately $700,000 to the federation this year. That funding is expected to wind down during the next two years.
Molzan said the federation will have to find more revenue sources if it is to continue expanding off-shore sales.
“That is where the growth will be and that is good news for individual producers looking for markets for their cattle,” he said. “It is time for them to consider how they can help pay for this.”
