Canadian beef gains foothold in China

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Published: June 24, 2010

Canadian beef will soon be heading to China under an agreement signed Thursday with China’s president.

The deal allows a resumption of market access for beef and tallow in stages.

Canada will become the first country to resume trade with China following a case of Bovine Spongiform Encephalopathy.

The first step includes access for boneless beef derived from animals under 30 months (UTM) of age and tallow for industrial use.

Further official discussions aimed at achieving full access for Canadian beef will continue in the near future.

The Canadian Cattlemen’s Association said it is anticipated that Canada could export $40 million per year of tallow and $10 million for boneless UTM beef to China in this first stage. Once full access is established to include bone-in products, that total could more than double to about $110 million a year.

Prime minister Stephen Harper, agriculture minister Gerry Ritz and international trade minister Peter Van Loan witnessed the signing of the deal following meetings with the Chinese delegation led by president Hu Jintao.

“This is tremendous news for Canadian beef producers as access to the rapidly growing Chinese market means significant market advantage and a better bottom line for Canadian producers,” said Ritz in a news release.

The CCA said the deal reflects China’s confidence in Canada’s strong regulatory controls and the efforts of the Canadian cattle and beef industry to ensure the safety of its beef. Chinese officials will tour Canadian slaughterhouses in the next week.

“I am very pleased that prime minister Harper and ministers Ritz and Van Loan continue to share the CCA’s high priority of expanding access for Canadian beef in international markets,” said CCA president Travis Toews in a news release.

“China is among one of a few important markets that we have placed a very high priority on gaining access.”

Canadian beef has been prohibited from entering the Chinese market since May 2003 due to the discovery of BSE.

Since 2007, the World Organization for Animal Health has officially categorized Canada as a controlled BSE risk country. This designation allows for the safe trade in all beef and cattle under specified conditions, which Canada meets.

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