PHOENIX, Ariz. – Live movement of Canadian cattle into the United States is on hold indefinitely.
The market analysis firm Cattlefax said it does not expect live trade from Canada to resume until at least summer or fall.
U.S. government officials attending the National Cattlemen’s Beef Association convention agreed.
“It’s not going to be spring,” said Ron DeHaven, chief veterinary for the United States Department of Agriculture.
Detailed rules for exporting live animals younger than 30 months to feedlots or direct to slaughter were originally on the fast track to resume trade, but were delayed when the U.S. discovered a BSE case tracing back to Canada.
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DeHaven told the Canada-U.S. working group the rule is likely to be reopened for public comment once the investigations and international assessments of the American BSE case are completed within the next couple of weeks.
The international panel report is expected to list specific recommendations similar to what were dealt to Canada after its case last year. It is also likely to recognize the beef industry is a North American entity meaning recommendations should apply to the entire continent, including Mexico.
The U.S. is shut out of 52 countries with the only buyers being Canada, the Philippines, Poland and some Caribbean countries.
Without exports, the Americans have a surplus of one billion pounds of beef to be consumed domestically. That means every American must eat two more lb. annually to balance the beef inventory.
U.S. beef exports to Canada are expected to remain steady at around 250 million lb. for 2004.
That is bad news for Canadian feedlot operators who are losing about $300 per animal.
“We are running out of time for people to stay in business,” said Dennis Laycraft, executive vice-president of the Canadian Cattlemen’s Association.
Canada is doing everything it can to restore markets but producers are getting desperate, he told the committee.
“We are committed to working together, but we can only hold on for so long.”
By trading within North America it shows the rest of the world the beef is safe to eat, he said.
“This is a watershed point for the world,” Laycraft said.
He also said if the Americans allowed live trade with Canada to resume, it could clear up the problem of boneless products and show the world they have faith in the safety of all beef.
Part of the problem is a 1997 American law that said it would not accept cattle or beef from any country with a case of BSE.
Similar laws exist around the world even though the world animal health organization, the OIE, said overreaction to BSE causes unnecessary trade restrictions and creates a disincentive to report any cases.
