February 18, 2005

Canadian livestock exports plunge in 2004

The mad cow crisis in Canada caused cattle exports to plunge in 2004 and crippled the nation's value of beef exports to the world.

Cattle and beef exports totaled $1.9 billion in 2004, less than half the amount set in 2002.

And even as markets for beef were hard to find, the national cattle herd swelled to a record level, 15.1 million head, in January this year.

The combination of low sales and high overhead costs that stem from larger herds is a double-blow for farmers.

Many producers have been struggling to get by since May 2003 when one case of mad cow disease, bovine spongiform encephalopathy, was discovered in Alberta.

The discovery prompted the United States and other countries to close their borders to Canadian cattle. Limited exports of some beef products resumed in the fall of 2003.

Getting the border reopened to live animals has proven to be a longer and painstaking process, but the US is set to lift its ban on cattle under 30 months from March 7.