Even as Canada’s beleaguered beef industry and besieged politicians celebrated the first international cracks in the ban on Canadian beef exports this week, there were warnings that the battle to restore Canada’s place in international markets is far from over.
Live cattle are not eligible for export, cull cattle seem far down the list of possible inclusions in the program, details of how restrictive United States import rules will be are not yet known and Canada’s cattle compensation program ends later this month when the U.S. border opens a little.
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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
The industry is demanding a “transition” program while the industry crisis continues.
On Aug. 11, an all-party House of Commons committee voted unanimously to call for prime minister Jean Chrétien to lead an all-party and industry delegation to Washington, D.C., and Tokyo to lobby for a full border opening.
“I think this could have been settled earlier but the prime minister has no credibility in Washington,” Canadian Alliance finance critic Monte Solberg told an Aug. 11 news conference. “He has to step up to the plate and make it a priority.”
Almost all foreign markets have been closed to Canadian ruminant exports since May 20 when one case of bovine spongiform encephalopathy was discovered in Alberta.
On Aug. 8, U.S. agriculture secretary Ann Veneman announced that Canadian firms can apply for permits to ship some “low risk” products including boneless cuts from cattle younger than 30 months and boneless veal from calves under nine months.
Talks are scheduled for Aug. 14 to begin discussions on how some “low risk” younger live cattle exports also could start.
On Aug. 11, Mexico said it too was allowing a partial opening.
“The announcement by the United States will make other (country border) developments happen more quickly,” Andrew Marsland, assistant deputy agriculture minister, predicted.
“The whole situation isn’t over yet but this is one big step and a very big first step,” agriculture minister Lyle Vanclief said in an Aug. 8 news conference reacting to the U.S. decision
Federal and industry officials said the limited opening into the U.S. market will potentially affect just 40 to 50 percent of beef sales to the U.S., which represents less than half of the total traditional beef and live cattle trade south.
Details on how stringent the American rules will be to grant import permits are not known.
And the huge problem of dealing with Canadian cull cattle over 30 months old has not been resolved. Federal officials say there is little indication export markets for those cattle will open in the foreseeable future.
“Until live cattle are allowed to be traded, the border is not open in my opinion,” Canadian Alliance MP Rick Casson said Aug. 11. His Lethbridge riding has been most affected by the BSE crisis being home to most of Canada’s large feedlots.
Meanwhile, senior Agriculture Canada official Gilles Lavoie said the federal government is considering ways to help the industry once the BSE compensation program ends this month. Industry leaders told MPs Aug. 11 that a “transition” program is needed to help industry.
Canadian Food Inspection Agency acting vice-president Robert Carberry told MPs the agency will soon announce significantly higher rates of testing for BSE.
From a 2002 testing record of 3,200 animals, he said proposals are being debated to raise that total from between 25,000 and 70,000 animals per year.
