March 17, 2005

 

Export of Canadian cattle halted

 

 

The USDA's attempt to open the importing of Canadian Beef suffered a major setback last week due to US District Judge Richard Cebull granting a temporary order preventing the import.

The rule by USDA was to take effect by March 7.

 

The USDA rule was to take effect March 7 when Cebull granted the stay on the import due to a petition filed by the Ranchers-Cattlemen Action Legal Fund United Stock grower's of America (R-CALF USA).

 

The organization highlighted the risk factor relating to the consumers and US cattle producers. This over riding of the USDA rule was also supported by the US senate. The House would be passing the resolution which would be sent to President Bush for his signature. However, it was warned by the Bush government that it would veto this resolution.

 

Due to the ruling the two major beef packers, Swift and Cargill, have announced cutbacks at some of their facility.

 

However in order to find a solution to the deadlock and not to indulge into law suits, some points were put in place which were mainly to put a ban on the importing of beef for cows older than 30 months. This would have to be certified while importing. Secondly, assuring all preventive systems are functional and in place in Canada to prevent BSE.

 

Apart from the Canada crisis the other major issue facing the US cattle industry is the need to resume beef trade with Japan who currently is reluctant to resume due to fear of BSE.

 

Meanwhile, US Agriculture Department still hasn't decided if it would be appealing a court-imposed delay on Canadian cattle imports despite a judge's deadline Wednesday to set a trial date.

 

However, Cebull gave R-CALF and US officials 10 days to agree on a trial date. But the department spokesman Ed Lloyd stated that it has no plans to file with the Court.

 

The government officials on the other hand were given 60 days to file an appeal. They are still in a process of determining the most compelling case in order to go to the court.

 

Cebull's ruling cost Canadian ranchers a loss of  $7 billion since the ban on beef products which was imposed nearly two years ago.

 

Canadian officials forecast that it would take another 18 months before the US border reopens for trade.