February 25, 2004

Canada Imports Of US Beef Slow

Canada, the fourth largest foreign market for U.S. beef, is not buying much, despite the assurances there is no ban in place for boneless beef from cattle under 30 months of age, the chief economist for the U.S. Department of Agriculture said Tuesday.
 
Keith Collins, who testified before the Senate Appropriations Committee, said the U.S. is still working to clear up beef trade certification issues with Canada.
 
"We're trying to resolve the situation so that they will take our products," he said. "They stated a policy...to accept our beef, but there are complications (in getting) the proper certification process in place."
 
The U.S. exported 86,613 metric tons of beef to Canada from January through November last year, worth $310 million, according to USDA data compiled by the U.S. Meat Export Federation.
 
The main problem, Collins said, is that Canada wants to accept U.S. beef only if it comes from a supply line that is dedicated to providing beef from cattle under 30 months of age, but U.S. exporters are unable to provide that.
 
"Here in the United States, we do not harvest animals under 30 months (of age) on a dedicated line," he said.
 
Canada does, though, after requirements made by the U.S. after Canada announced the discovery of a case of bovine spongiform encephalopathy, or mad- cow disease, in May 2003.
 
Collins said Canada continues to ask: "Why, if you're requiring that from us, shouldn't we require that from you?"
 
The U.S. discovered its own case of BSE in December, but later the USDA said it had proof the infected cow had been imported from Canada.
 
While Canada is not importing much, if any, U.S. beef, trade is flowing strong in the opposite direction, the chief economist said. "Boxed beef levels are back to pre-BSE levels," Collins said of U.S. imports from Canada.