CHARLOTTETOWN, P.E.I. – Canada’s cattle industry will have to wait a little while longer before it can create a national research and promotion agency funded by levies.
Officials from the Canadian Cattlemen’s Association said last week they do not expect final federal government approval of the regulations allowing creation of the agency until later this autumn. That will delay the agency’s operation until early in 2002.
“It’s frustrating,” said CCA Ottawa-based national affairs director Jim Caldwell. “We had hoped to proclaim it by Aug. 1. Now, there are more delays.”
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Once established, the agency will collect $1 for each animal marketed in Canada or imported. It could raise close to $6 million for industry research and promotion.
Planning has been in the works for several years and it will be the first new non-marketing research and promotion agency created under revised National Farm Products Agencies Act rules.
“I know it has taken longer than you wanted but because you are the first, extra care had to be taken,” National Farm Products Council member Ron O’Connor told the summer CCA convention Aug. 16.
“This will be a precedent for other sectors and we wanted to be sure we got it right.”
Although proposed rules have been subjected to weeks of public comment and months of negotiation already, and agriculture minister Lyle Vanclief has approved the proposal, cabinet has decided to require one more period of public comment.
The proposals were published Aug. 18 in the Canada Gazette for a 15 day comment period.
Then, it will go back to cabinet for a final decision on whether to approve creation of the Canadian Beef Cattle Research, Promotion and Development Agency. It is expected that will happen in October or November.
“January is now our target for getting the agency going,” said Caldwell.
Its first obligation will be to get all 10 provinces as members so that all cattle marketed in Canada are subject to the $1 per head levy. Already, British Columbia, Alberta, Saskatchewan and Ontario contribute. The new agency will add the other provinces.
Once all provinces are in, rules will be created to collect the levy on imported cattle.
Caldwell said the simplest way would be for collection to be done by Canadian customs agents at the border, but a deal has not been worked out.
A more complicated system would involve collecting at the destination plant. It is expected $800,000 or more will be collected annually from imports for promotion of the Canadian industry.