May 14, 2010

The government of Canada is funding the growth and development of its red meat sector by investing in more than US$6 million for beef research and US$75 million to aid meat processors upgrade their plants.

The budget also includes handling of older cattle and building of long-term solutions to reducing the costs of specified risk material (SRM) disposal.

"As one of Canada's leading exporters and a major customer for our livestock farmers, our red meat processors are a key part of Canada's economic recovery," said Minister Ritz. "If packers are competitive and profitable, our farmers will benefit through stronger markets and our economy will benefit through new jobs."

While stressing that SRM disposal under Canada's Enhanced Feed Ban is the key to regaining beef access in markets closed due to BSE, Minister Ritz urged continued collaboration on all sides to use the federal investment to develop long-term solutions to increase the competitiveness of producers.

Over the past 18 months, Minister Ritz has partnered with Canadian farm leaders to lead international trade missions, which restored beef access in the Middle East, Colombia, Russia and Hong Kong as well as pork access in China. These efforts alone will bring an estimated US$116 million worth of new business to the pork and beef industry of Canada every year.

Contributing to the success of these missions is the new Market Access Secretariat which was built on the recommendation of the Beef and Pork Value Chain Roundtables. The Secretariat backstops government and industry efforts in expanding existing markets and opening new ones.

As the Canadian red meat industry generates 67,000 jobs and over US$4 billion in exports, the government supports farmers by improving infrastructure, investing in innovation and building stronger international trade relationships.