February 23, 2004

 

 

Forecast 40% Of Canadian Beef Exports To Asia By 2010

 

A forecast 40 percent of Canada's beef supply will go to Asian countries by 2010, thus reducing the country's dependence on the United States, a top marketing expert said Saturday.

 

Asian beef markets would be a lucrative catch because its consumers eat many non-prime beef cuts that North Americans generally shun, such as tripe.

 

That means a carcass processed for Asia is worth nearly C$200 more than one killed for domestic customers, said Cam Daniels, vice-president of the Canada Beef Export Federation.

 

Because of that extra value, the federal government should apply extra pressure to lift the trade bans by countries like Japan and South Korea, as well as boosting exports to Mexico, he said.

 

"We feel those are our future. That's where we can add value and that's where we can get the money," Daniels said at a beef industry conference.

 

Asian states have refused Canada's pleas to recognize that mad cow disease is a low risk in Canadian beef.

 

Before May, when the mad cow crisis caused borders around the world to close to Canadian beef and cattle, more than three-quarters of the country's exports went to the United States.

 

The U.S. and Mexico are the only major export markets that currently accept any beef from Canada, but have restricted access to boneless beef from younger animals.

 

Daniels agreed that pushing for live cattle shipments to the United States is the most pressing need in the short term, but said the gains can be greater in other markets.

 

While Asian markets are attractive, they have resisted resuming beef imports from Canada since the discovery of two cases of bovine spongiform encephalopathy in Alberta cows last year.

 

Japan has demanded that Canada test for BSE in all cattle it slaughters, a demand repeatedly turned down.

 

Many industry watchers say it will take years to resume beef shipments to Japan, the biggest beef importer in Asia. Daniels predicted most or all bans will be over by the end of this year.

 

Simon Cobban, a feedlot owner near Didsbury, said Canada should accede to Japan's requests and test every animal, or at least the ones destined for that market.

 

"We have to be listening to what the customer wants," he said.

 

Federal and provincial governments have argued that inspections should be based on what's scientifically necessary and target older or sickly animals.

 

Market analyst Anne Dunford urged caution, saying Asian markets currently pale in comparison to the U.S.

 

"I think we should walk before we run," she said.

 

The Cargill meat-packing plant in High River used to process prime cuts for North American consumers and ship most of the remainders at a premium price to Asia.

 

Since BSE struck, most of those "variety meats" have been boiled down or rendered into pet food and farm feed, at much lower resale value, Cargill spokesman Rob Meijer said.