DARK days dogging the Canadian cattle industry saw brief displays of light last week.
Since the May 20 announcement of the single case of bovine spongiform encephalopathy in Canada, bright spots have been scarcer than hen’s teeth, and therefore even more worthy of mention.
The first ray of hope was the announcement of $460 million from federal and provincial governments to assist the most beleaguered sectors of the cattle economy – cattle feeders with stalled on-the-hoof inventory and packers with no freezer space to accommodate new product.
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Across Canada, provincial assistance for the cattle sector was never in doubt, particularly in Alberta where the hurt is greatest. The pleasant surprise was new money from Ottawa – money that is not tied to provincial signing of the agricultural policy framework, as some feared it would be, and money that acknowledges an agricultural disaster of major proportions.
Cattle industry entrepreneurs, unaccustomed to requesting government help, much less receiving it, have welcomed the money. Opposition parties and cattle industry-related sectors not in direct line to receive funds – truckers and renderers, for example – say the money won’t be enough.
We are inclined to agree, particularly since the amount available is only guaranteed until the United States border reopens to cattle and beef exports. The after-effects of this disaster will likely be extensive. A “plan B” will be needed when cattle and beef flow south again, but that is a discussion for another day.
Given the federal government’s less than stellar record of western Canadian agricultural assistance, we are at least grateful that the trial balloon of interest-free loans was deflated before last week’s announcement. The last thing the cattle industry will need in coming years is additional debt.
As it is, some of the federal money made available now will be drawn from the safety net fund in future years. Fair enough, considering the magnitude of this problem is unlikely to be rivaled.
Also on the sunnier side of the cattle industry climate is recognition that speed of dollar delivery is essential.
Alberta led in developing assistance forms and making them available to other provinces. Last week officials suggested money could be in some cattle industry hands even as you read this. If so, it’s cause for applause.
Another highlight in the gloomy industry scenario is accompanied by irony. Last week a United States government sub-committee blocked funding for mandatory country-of-origin labelling, known by its acronym of COOL. This effectively delays implementation until at least Sept. 30, 2005. It might even halt it completely if common sense prevails after debate and investigation into the controversial farm bill component.
Before the discovery of BSE in Canada, COOL was the most pressing issue on Canadian cattle industry minds. The legislation has potential to dramatically reduce Canadian beef exports to the U.S.
The irony in this turn of events is that, had COOL been in place in the U.S. today, the border would likely be open by now, post-BSE, to Canadian cattle and beef exports. Such labelling might have satisfied Japanese worries that beef purchases from the U.S. might have some association with Canadian product. As it is, Japan has yet to affirm its confidence in the safety of Canadian beef.
In any case, COOL is at least a year further away and the delay increases the chance that it may not become mandatory at all. When the border reopens and markets work themselves back toward normalcy, the Canadian industry will have more time to strategize its response and its opposition lobby to COOL. Because a U.S. election will take place in the interim, the outcome is anyone’s guess.
There is one more ray of hope for the Canadian cattle industry, and it is a bright one indeed. Western Canadian support for the cattle industry in these dark times has been strong and unwavering. Consumers have few worries about meat safety. That speaks well for the inspection system as well as the work done by the industry in emphasizing the high calibre of domestic production. And it will make it easier to reaffirm Canadian beef safety and quality to the world.
Domestic support, compensation and a delay in harmful U.S. legislation: bright spots during dreary times. May they be the harbingers of better days ahead.
