Canada’s packers were on Parliament Hill Feb. 23 trying to convince MPs that rather than profiteering since the BSE crisis started May 20, they have faced increased costs, lost markets, incurred losses because of a more valuable Canadian dollar and have donated excess meat to food banks.
Jim Laws, executive director of the Canadian Meat Council, told the House of Commons agriculture committee that packers face increased costs of as much as $232 per head of cattle slaughtered because they cannot sell offal overseas and must spend up to $40 getting rid of it.
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“The loss of the extra value of these products has significantly reduced the revenue received per animal,” he said. Laws noted that the packing industry faces “significant investments” in its plants if the industry is to survive.
But many of the MPs on the agriculture committee were in no mood to be sympathetic.
They had asked representatives of five packers to appear. Cargill, XL Beef and Lakeside Packers, owned by Tyson, did not.
“I express profound regret that representatives of certain packers invited chose not to come,” said committee chair Paul Steckle. He then called on the packers who did show up – Better Beef Ltd. of Guelph and Levinoff Meats Ltd. of Montreal – to “justify profit-taking on the backs of an industry on the verge of collapse.”
Industry representatives insisted their increased profits are necessary for investment and to cover increased costs.
Several Liberal MPs pounded the packers for what they said were excess profits.
Edmonton MP David Kilgour presented a report that he said concluded packing houses made more than $200 million in “excess profits” between October and February. Laws said he doubted the numbers in the analysis done by the George Morris Centre in Guelph.
Kilgour unsuccessfully tried to present a motion calling for XL, Cargill and Lakeside officials to be subpoenaed to appear before the committee.
