September 1, 2005

USDA: Canada livestock and products annual 2005

On July 18, 2005 after the implementation of the USDA minimal risk rule, the U.S. border re-opened to certain live cattle imports from Canada for the first time in more than two years, but imports from Canada have not resumed the average levels of the pre-BSE period.

Part of the Canadian cattle industry's repositioning strategy is to become less reliant on the U.S. processing industry by expanding domestic slaughter capacity.

Another Canadian cattle industry restructuring goal is to recapture the ability to domestically process non-fed cattle that previously were exported live to plants in the United States. Most of these animals are over 30 months and are ineligible for export to the United States under the USDA minimal risk rule. 

By the end of 2005, domestic cattle slaughter in Canada is expected to be nearly 20% above pre-BSE levels and further slaughter capacity expansion is planned. By 2006, annual Canadian beef and veal production is forecast to be almost 25% greater than during the pre-BSE period.  

Despite major world markets remaining closed to Canadian beef, Canada's total beef exports have surpassed their pre-BSE level on the strength of access to the U.S. market.

Following a flat performance in 2004, Canadian pork exports rebounded during the first six months of 2005 with strong sales increases to South Korea, Japan, Romania and Australia.

Canadian pork exports to the United States, the largest export market for Canadian pork continued to decline in the first half of 2005. On balance, Canadian pork exports during 2005 are forecast to exceed 1.0 million metric tons for the first time.

For the full report, click here.