100 MILE HOUSE, B.C. – Bruised and battered five years after its first BSE case, the Canadian beef industry still struggles to regain its once lofty position as a major exporter.
Canada has returned as the third largest beef exporter in the world but key markets like Japan and the United States remain restricted and South Korea, once the third best customer, remains closed.
The United States asked Canada to stand with it and try an all-or-nothing approach to reopen Asian markets but Canada is looking at going it alone, said Canadian Cattlemen’s Association president Brad Wildeman.
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Customers will be told: “Show us how you are going to meet international guidelines. We believe that these countries should tell us what it is going to take to get them trade compliant,” he told the British Columbia Cattlemen’s Association annual meeting in 100 Mile House June 14.
“If that is under 30 months bone in, then we are going to do that,” he said.
Serious discussion on the topic will be held in August at the CCA meeting in Manitoba and the U.S. will also be told about Canada’s approach.
“We need to be careful and do things appropriately. We don’t let the U.S. think we are trying to do something underhanded,” he said.
The U.S. remains the best market but with costs lower in American feedlots and packing plants, more Canadian cattle leave each month. The difference to process in Canada and the United States is $50 to $80 a head.
“In these plants that kill 4,000 head a day, we’re talking about $200,000 or more a day. They simply can’t do that. Two of our largest packers are U.S. owned. The chances they may decide to consolidate their operations down in the U.S. where the costs are lower are real,” he said.
Wildeman also bristles when he hears the CCA has no vision to help producers out of their economic wreck.
“We do have a plan,” he said.
A long-term strategic plan for the industry has been developed by the CCA, Beef Information Centre, Canadian Beef Breeds Council, Canada Beef Export Federation, provincial associations and other industry related groups.
- Work with the federal government to fix the business risk management programs to build confidence in the future. Any support programs need to be national in scope and treat all the producers the same while avoiding a countervail risk.
- Enhance market access because three federal agencies look after foreign trade including Agriculture Canada, Canadian Food Inspection Agency and Foreign Affairs. An international trade directorate for agriculture is needed to co-ordinate. There have been situations where trade delegations from different provinces or departments bump into each other in a foreign country without knowing the other was on a trade mission.
- Reduce regulatory cost and burden. Canadians no longer have the protection of a low dollar so other costs must be brought in line. An offset program is also needed for the enhanced feed ban until harmonization with the U.S. occurs in April 2009. A meeting is scheduled in Washington next month to discuss harmonization of the feed ban.
- Accelerate approval of new veterinary drugs because the average licensing time in Canada takes five to eight years. This lag costs Canadian feedlots about $40 per head.
- Improve competitiveness through research and innovation to invest in higher yielding forage grain and introduce instrument meat grading.
- Promote Canada’s high health status with a clean environment, age verification and identification, high quality genetics, consistent beef quality and a sound grading system.
- Maximize the value of every cut and product sold. Rather than look at selling the whole animal, analyze each cut and sell it where the most value could be obtained for it. Canada can offer just-in-time delivery into the U.S., the world’s highest value market.
- Enhance information sharing among cow-calf operators, feedlots and packers.
- Review marketing structures of the Beef Information Centre and Canadian Beef Export Federation to determine if their strategies are correct.
