April 30, 2004

Canada Cattle Sales Slow Amid Uncertainty Over US Import Ruling
 

American buyers are staying away from Alberta cattle auctions, while they wait for clarification on what cuts of beef will be allowed across the border.

A U.S. cattle organization won a temporary injunction on Tuesday, which prevents the shipment of bone-in cuts of beef. The United States Department of Agriculture had agreed last week to accept a wider array of meat.

"There was tremendous optimism a week ago," commented Bob Balog, who owns an auction house south of Lethbridge. "Buyers from both Canada and the United States were rather optimistic that the border would be reopened soon."

He added that there was a sudden complete turnaround in the mood in just one and a half days, resulting in a lot of confusion among many people.

Cattle buyer Dallas Martin says last week's auction - after the USDA announcement - was full of American buyers. However, at the Balog auction on Wednesday, there were none to be found.

The price steer last week was the same on both sides of the border, thereby driving American ranchers to spend their more valuable dollar up here.

Rick Pascal, a feedlot owner from Picture Butte, says the confusion is now scaring away the American buyers as well as the meat packing plants.

"I get offered a fairly decent price for my cattle [Tuesday] and today they're not even there. Moreover prices out there are $10 to $15 cheaper than what they were yesterday," Pascal said. "You just don't know how to operate from one day to the next."

Pascal says the slaughter rates at the three main packers in the province will be affected if the injunction remains in place. It would expire on May 11, but it was not clear what would happen after that.