LIMITING the use of supplemental beef imports, as proposed by the House of Commons Standing Committee on Agriculture, is a welcome new policy to fit the evolving cattle industry.
As reported in the Western Producer last week, the committee unanimously agreed to permanently limit supplemental imports of beef and veal from low-cost countries to 1,500 tonnes per year.
Such imports were a lightning rod for discontent in the throes of Canada’s BSE crisis in 2003, when producers couldn’t find a market for their own beef but saw Canadian processors import beef from other countries for use mainly in manufactured products like deli meats.
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Supplemental import permits were contentious even before that, however. Their use prompted many cattle producers, in search of higher prices, to ship older cattle to the United States for processing. Over time, it was a factor in limiting Canadian processing capacity. Those limitations came to haunt the industry in 2003-05 when the U.S. closed its border to Canadian cattle and beef.
Supplemental beef imports sometimes constituted a large amount of imported foreign beef. In 2002, the most recent year unaffected by the BSE crisis, Canada authorized supplementary imports of about 65,082 tonnes. The highest amount in the last 10 years was 68,595 tonnes in 2001.
These amounts were in addition to the 76,409 tonnes of tariff-free beef and veal annually that Canada is obligated to allow through its membership in the World Trade Organization. That obligation excludes countries covered by the North American Free Trade Agreement.
In 2004 and 2005, imports through the supplemental import program were negligible. Given the low amounts recently received in Canada through these permits, the change now to be considered by the House of Commons is largely symbolic, as Canadian Cattlemen’s Association vice-president Brad Wildeman said last week.
But that symbolism has great value. If the House approves the committee recommendation, applicants will have to demonstrate that they have made all possible efforts to buy Canadian beef or veal.
Only if they can do so will supplementary imports up to 1,500 tonnes per year be approved.
Canada has greater processing capacity than it did when the BSE crisis struck. It’s now 105,000 head per week compared to the pre-BSE 72,000, and the number of older cattle processed domestically has risen to 18,000 head from 8,000.
And now manufactured beef products contain 80 percent Canadian content, up from 25 percent. That shows the industry has become more able and yes, more willing, to accommodate the specific needs of further-processors.
Last week brought news of progress in U.S. plans to reopen the border to Canadian cattle, perhaps by this summer.
Drought in Australia, with resulting limits in livestock production, could allow Canada to regain some Asian markets filled by producers Down Under over the last three years.
The symbolism of limiting supplemental imports, showing support and confidence in the Canadian cattle industry, indeed has value. Cattle producers will want to press the government to support it.
Bruce Dyck, Terry Fries, Barb Glen, D’Arce McMillan and Ken Zacharias collaborate in the writing of Western Producer editorials.
