National livestock strategy urged

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Published: July 16, 2009

The Alberta Livestock and Meat Agency, which was formed more than a year ago to reboot the red meat industry, would have been better as a national plan, say some industry leaders.

“We would favour national programs more than we would a mismatch of provincial programs and regulations,” said Ed Boethner, past president of the Saskatchewan Stock Growers.

Gord Hardy, president of the Ontario Cattlemen’s Association, agrees, although he also applauded Alberta for stepping in to help its producers during a time of market disarray and uncertainty.

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“I congratulate the Alberta government for standing behind their industry the way they have and starting some of the programs that are needed within the industry to move it forward.

“I just wish we had pushed it nationally and had our federal government initiate that across the country.”

As part of the ALMA strategy, Alberta producers received government subsidies last year to age verify calves and meet other food safety requirements.

British Columbia offered its producers $12 per head to age verify but other provinces made no extra payments.

Saskatchewan producers who ship calves to Alberta feedlots do not yet know when they must comply with Alberta’s age verification rules, said Boethner.

Hardy felt the payments skewed the marketplace and made it more difficult for feedlot owners to compete with Alberta buyers.

“When you don’t have a similar subsidy and have to compete for feeder cattle, it creates an unlevel playing field. The subsidized province can usually afford to give a little more than those who are not,” he said.

Both also believe payments to Alberta producers did little to relieve them from the effects of bad weather and worse markets.

Separate from ALMA, Alberta’s plan to make its $3 beef checkoff refundable also affects the industry in other provinces.

Ontario has a $3 mandatory checkoff and Saskatchewan producers pay $2 a head. It is refundable but few request a rebate.

Alberta Beef Producers, which collects the checkoff, reported that about $1.4 million is paid to the Canadian Cattlemen’s Association each year.

The $1 national checkoff paid through the Canadian Beef Cattle, Market Development and Promotion Agency last year gave the Beef Information Centre $3 million, Canada Beef Export Federation received $1.27 million and the beef cattle research council received $228,903.

If a large number of Alberta producers ask for the check-off money back, it could create budget uncertainty across the country because other provinces cannot make up the difference to support the national organizations.

“It is going to affect every province and every province is struggling to keep an industry afloat within their own province and don’t have the ability to bring some of these programs forward,” Hardy said.

Last year Ontario withheld its $400,000 CCA allotment until disagreements over farm programs and other issues were resolved. It eventually submitted its fees.

“We needed to address a business risk management plan for all producers and we need to have some way of getting money into the hands of our young people to keep them in the cattle business.”

The industry is facing further declines as the cow herd shrinks, prices flounder and international markets do not fully open. At a time when unity is needed, new groups are forming, said Hardy.

“There are always people who are not happy. When you get in bad times like our industry is in, everyone wants to find a different way of doing things. Right or wrong, they do it and we have it happening here in Ontario,” he said.

Other provinces also seem to be working more closely with the industry.

Ontario has formed a round table including the cow-calf sector, retail, restaurants and government to talk about salvaging a battered industry.

Boethner said his government is on the same page as its beef producers and it asks them what is needed rather than announcing programs without consultation.

“These meetings have not been confrontational. They are asking us what we think should be done. It has been a pretty good exchange,” he said.

British Columbia beef groups have formed a provincial task force to lift the ranching business from survival mode to profitability with an action plan expected in October.

About the author

Barbara Duckworth

Barbara Duckworth

Barbara Duckworth has covered many livestock shows and conferences across the continent since 1988. Duckworth had graduated from Lethbridge College’s journalism program in 1974, later earning a degree in communications from the University of Calgary. Duckworth won many awards from the Canadian Farm Writers Association, American Agricultural Editors Association, the North American Agricultural Journalists and the International Agriculture Journalists Association.

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