OTTAWA – Agriculture minister Ralph Goodale last week called on the Canadian cattle industry to do a better job of supplying the varied needs of Canadian packers.
He said the cattle industry may be concentrating too much on producing high-quality, grain-fed fat cattle and not enough on making sure packers who need lower-grade grass-fed beef are also served.
It is important the industry set as a goal “that Canadians fill more and more and more of the demand.”
Goodale said his department will work with the cattle and beef industry to win more co-operation among the sectors.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
He was appearing before the Commons agriculture committee Nov. 3 to defend a government decision last month allowing more frozen Australian beef into Canada before Dec. 31.
From an initial 1994 import quota of 72,021 tonnes, it was raised to 85,000 tonnes in mid-year and then on selected cuts, the quota was lifted for the rest of the year beginning in October.
He said the quota was raised because of demand for Oceanic beef by packers in search of grass-fed grinding beef and special cuts.
Foreign beef drops prices
The October decision to temporarily open the door a little more drew some heated criticism from cattle producers who have watched their prices fall this autumn, just as they were hearing that more foreign beef was being allowed in.
Goodale appeared before the committee to give his Liberal MP colleagues some ammunition to counter criticism at home.
His defence was direct: processors needed grass-fed beef to meet the demand for deli and grinding product. Canadian cattle producers were unable to supply it and the government agreed to allow more Australian imports.
But it should not have happened that way, said the minister.
“We are all perplexed … at why there should be this apparent Canadian short-fall,” he told MPs.
Goodale said while the Canadian Cattlemen’s Association and some of its provincial associations disputed the government decision to allow in more frozen Australian cuts, “they have not been able to prove where the supply is in this country.”
Goodale’s performance seemed to satisfy some of the Liberal MPs who have faced criticism at home.
Paul Steckle (Huron-Bruce, Ont.) said afterwards the problem was poor communications by both government and the leaders of the cattle producer’s lobby about the decision.
“The leadership of the industry also have to be accountable,” said Steckle. “They knew it was coming and why but I don’t think they got that message out.”
Goodale promised the government will monitor prices to make sure the additional imports will not hurt prices.
