BSE crisis opens doors for organic beef

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Published: April 29, 2004

If there is a ray of light penetrating the BSE cloud that has descended on the Canadian cattle industry, it can be found in the organic sector.

Producers and marketers of organic beef say there is a heightened awareness and increased demand for their meat since BSE was discovered in Alberta.

“It really has brought organic to the forefront,” said Sam Rhode, president of the Canadian Organic Livestock Association, or COLA.

“People now realize what it’s all about.”

He is uncomfortable with the notion of thriving on others’ misfortunes, but says the disease scare that chased away Canadian beef export customers has also created new opportunities for organic producers.

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Like many other cattle marketers, COLA lost an important export destination when the United States closed its border to Canadian beef. However, the association more than made up for that loss through increased sales to customers in Eastern Canada, who placed a higher priority on food safety and traceability issues.

“COLA is doing very, very well,” Rhode said. “We have lots of markets. We need animals.”

While membership in the non-profit marketing association has been “growing like crazy,” it is still a small player compared to conventional cattle marketers. The group has 65 members, up from 44 last year, who own approximately 9,000 cattle that are certified organic.

The association has set a goal of signing up 400 members within the next five years. Memberships cost $500 for the first year and $100 a year after that. Producers who join COLA participate in its price and freight pooling programs.

The association is launching a membership drive this spring to increase its herd and satisfy the growing demand.

“When the (U.S.) border opens we’re going to be short of animals,” Rhode said.

According to Alberta Agriculture, COLA is one of two main players in the organic beef sector. The other is Producers of the Diamond Willow Range, a co-operative of six ranches near Pincher Creek, Alta.

That group is also experiencing a steady increase in post-BSE sales, attributed in part to consumer demands to know where their food came from and how it was produced.

“It plays into things that we do,” said Diamond Willow co-ordinator Larry Frith.

While the BSE crisis has had negative effects for organic beef producers, such as doubling the processing costs at packing plants, there have also been positive effects.

More consumers want beef from cattle that have never eaten animal byproducts and organic meat fits the bill. Certified organic cattle can be fed only vegetable matter such as organically grown hay, silage and barley. This organic shift has strengthened domestic demand for Diamond Will-ow’s products.

Meat retailers are also noticing a change in consumer attitudes. Aron Lundquist, owner and manager of Diamond 7 Meats Inc., a Lloydminster, Sask., meat processing company, said demand for organic and natural beef is picking up at his store.

“We have had a tremendous re-sponse from people looking for a little more confidence in the beef that they’re buying.”

He has noticed that more consumers are asking questions about organic production, trying to figure out how it differs from conventional beef. As well, some consumers are shifting to organics “simply as a precaution.”

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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