May 7, 2004

Canada Beef Exports To Mexico Slowed Following US Action

Canada's beef exports to Mexico, which hit record levels in the first quarter, have been slowed by a U.S. court order obtained by a cattle ranchers' group, exporters said on Thursday.

The court order, obtained late last month by R-CALF United Stockgrowers of America, stopped a number of Canadian beef products from moving into the United States -- including those destined for Mexico, the Canada Beef Export Federation said in a statement.

Boneless cuts from young animals, liver and boneless veal are allowed into the United States, but the ruling stopped beef trim exports, which account for a third to half of Canada's volumes.

The action hurt Canadian cattle prices and added more uncertainty to an export-dependent industry already reeling from year-long trade bans.

The United States and Mexico have been the only countries to import Canadian beef since the first home-grown case of mad cow disease last May.

Beef exports to Mexico hit record levels in the first quarter of 2004 because of competitive pricing and strong promotion in supermarkets, the export group said.

Exports were up 163 percent during the period at 26,500 tons per week -- weekly sales averaging C$132 million ($97 million), the group said.