EDMONTON – Canadian and American cattle producers should not be fighting over free trade issues, says the president-elect of the U.S. National Cattlemen’s Beef Association.
George Swan said a bill before the United States Congress that includes a requirement to label meat by its country of origin is not aimed at Canada but at all foreign exporters shipping beef to the U.S.
Although the NCBA supports the bill, many members realize they can’t remain protectionist and control trade in the future, said Swan. Their job is to feed people, and arguing over legislation could further decrease beef demand.
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“Pork and poultry producers are on the sidelines watching and laughing as the cattlemen fight it out,” said Swan, who attended the recent Canadian Cattlemen’s Association convention in Edmonton.
Swan, a cow-calf producer from Idaho, said the entire U.S. northwest region opposed the North American Free Trade Agreement for fear of its effect on domestic markets. They hope passage of this bill addresses some of their concerns.
They believe labeling will increase competition at the retail meat case and ultimately will improve the quality of beef available.
Packers and processors have told cattle producers they are opposed to meat labeling because separating imported beef from domestic product is expensive.
“We want to know what those costs are,” said Swan.
Congress is on summer recess and the bill will be re-examined in the fall. Congressional elections in November could delay the bill if there are a number of new House representatives and senators who aren’t familiar with the legislation, said Swan.
The Senate already approved a measure that requires labeling of imported and U.S. beef. It will be dealt with by the House as the farm appropriations bill moves through meetings this fall. It could be law by the beginning of 1999, said Swan.
Currently, if imported beef is further processed or if live cattle are imported direct for processing, meat is sold as U.S. beef. About 13 percent of the beef sold as U.S. meat is actually from imported cattle.
According to Canfax, the Americans annually consume 69 pounds of beef per capita. Of that, 64 lb. is American, two lb. comes from Canada and three lb. from Australia and New Zealand.
The American beef industry is facing its largest production levels since 1976, with the total for 1998 projected to reach more than 25 billion lb. This continues a three-year trend of U.S. beef production levels over 25 billion lb. annually.
The financial crisis in Asia has slowed beef and beef byproduct exports, and has reduced the tonnage of beef going to Asia at lower values. Australia, New Zealand and Canada also reduced exports to Asia and are looking to the U.S. market to sell their products.
The bill includes plans for nearly $10 million (U.S.) for food safety programs and $3.4 million for animal disease research, which are higher amounts than the Senate has approved.
