Government assistance to the cattle industry might be possible even after the border reopens, said a senior Agriculture Canada official.
When he announced the bovine spongiform encephalopathy compensation package June 18, federal agriculture minister Lyle Vanclief said it will end the moment the United States border opens to Canada’s beef.
It has been one of the industry’s major criticisms as cattle sector leaders argue that the mere opening of the border will not lead to a price spike. Excess product will have to be moved at discount prices.
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Senior Agriculture Canada official Gilles Lavoie said a false impression has been left.
The BSE compensation will end that day, whenever it happens, but something may replace it.
“The minister has indicated that while the program will terminate upon the opening of the U.S. border, they have also committed themselves, federal and provincial ministers, to meet as soon as the border is going to open to review the situation and to review the various conditions and see if there is something else that has to be done to facilitate the continued movement of cattle,” Lavoie told the House of Commons agriculture committee June 30.
“As soon as the border will open, they will sit down together, review the conditions and see what else needs to be done.”
So what does an open border mean? Before May 20, all beef products could move north to south. Does the domestic compensation program end only when the border returns to May 19 rules?
No.
“We said if the border opened for meat cuts, for live cattle, the program will end,” said Lavoie.
That means muscle cuts and young animals.
“It is still limited access to American markets, but our program ends,” said Canadian Alliance agriculture critic Gerry Ritz during the meeting. “There’s no phasing out of the program.”
