While a Canadian flag on exported beef is considered smart advertising in Japan, where Canada has a clean and healthy image, doing it in the United States is considered a consumer turn off.
“Support for country-of-origin labelling has made some real gains in the U.S. since early September,” said Ben Thorlakson, past president of the Canadian Cattlemen’s Association.
American producers argue that the U.S. Department of Agriculture seal must only go on product born in that country. Some groups believe Canadian beef is sold under false pretences because American consumers assume all meat is a domestic product.
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However, the U.S. packing industry and Canadian cattle producers have long lobbied against such labelling.
The packers, which annually buy the equivalent of more than one million Canadian cattle, argue that the costs to separate the product are prohibitive. They also say the North American Free Trade Agreement should allow the free movement of beef, and that country-of-origin labelling is protectionism.
Canadian producers point to studies that have found American consumers would buy U.S. beef over Canadian if they had a choice.
The U.S. House of Representatives has already voted in favour of labelling imported produce. Beef and lamb labelling rules are before the Senate and could be incorporated in the next farm bill.
“There are a number of remedies to address this threat, and strengthening our presence in growing Asian and Mexican markets is one very viable option,” Thorlakson said at the Canada Beef Export Federation’s annual meeting Oct. 18.
Canada sells 73 percent of its beef and cattle exports to the U.S. At one time it was as high as 90 percent.
Federation chair Larry Sears said Canadian gains in Asia and Mexico improve each year, and the goal is to sell 50 percent of Canadian beef products to that market within a decade.
He is confident that a sluggish economy in prime markets like Japan will turn around in the next two or three years. A continuing reduction in tariffs and meat import regulations should continue to open doors.
