July 17, 2006

Cattle age limits dampen Canadian beef exports

Canadian beef exports to the end of April were at 121,000 tonnes, down 23 percent from the 158,000 tonnes during the first four months a year ago.

Before mad cow disease in 2003, exports in the first four months of 2002 was 163,000 tonnes. 

However, before the mad cow ban, beef of all ages would have been acceptable, as opposed to the 30-month limit imposed currently.

The US accounts for 83 percent of Canada's beef exports, followed by Mexico at 9 percent and Hong Kong and Macau at 4 percent. 

Beef exports into the US are down 18 percent at 100,000 tonnes.

Beef exports to Mexico has fallen by more than 50 percent compared with last year as Canadian prices are now higher than US prices, making the latter more acceptable to the market.

Meanwhile, for the first four months of 2006, only 272 tonnes of Canadian beef were exported to Japan due to the 21-month age limit. In 2002, exports to Japan were 7500 tonnes and in 2001 they were 9,000 tonnes.