September 6, 2010

 

Canada ready to ship beef to China

Shipments of Canadian beef and tallow to China should resume this year, but much technical work remains after China announced in June it would ease seven-year-old restrictions.

 

China agreed ahead of G20 meetings to accept Canadian boneless beef from cattle under 30 months of age and beef tallow as a first step to full market access.

 

Beef officials had expected trade to resume in the summer, but, despite some delays working out technical details, shipments should still move during 2010, John Masswohl, director of government and international relations for the Canadian Cattlemen's Association, said on Friday (Sep 3).

 

"The good news is that the wheels are in fact turning, so we're hoping that (access) will be taken care of fairly soon," Masswohl said.

 

The earliest trade will likely resume is Oct 1, said Ted Haney, president of the Canada Beef Export Federation.

 

Three steps remain - negotiating technical conditions, confirming export certificates, and approving establishments that are eligible to export, Haney said.

 

Canada, the third-largest beef shipper, is pressing China to approve its system of inspecting and certifying beef plants, rather than individual facilities.

 

It is the first country affected by bovine spongiform encephalopathy, commonly known as mad cow disease, to regain access to the Chinese beef market. The US continues to talk with China on beef trade issues, said US Agriculture Secretary Tom Vilsack.

 

Canadian beef and veal exports in January through June were up 16% over the year-earlier period, due mainly to higher demand from the US and Mexico, according to Statistics Canada.

 

The country's initial access to China is worth an estimated CAD60 million (US$58 million), with tallow, used in industrial frying, the most valuable part. With full beef access, China's imports could be worth CAD110 million (US$106 million), beef officials said.

 

When China was last open to Canadian beef, in 2002, it imported only CAD7.1 million (US$6.84 million) worth of product, according to Canada Beef Export Federation data. However, its population and income growth are seen making it potentially a major market, as it has become for pork exports.

 

China's decision to ease restrictions leaves South Korea as the only country to maintain its ban on Canadian beef since 2003. Canada and South Korean officials are scheduled to make arguments before a World Trade Organisation sub-panel looking at technical issues in early October.

 

Canada's other major meat-trade dispute lies with the US' country-of-origin meat labelling law. Canada, joined by Mexico, and US officials are scheduled to make oral arguments to a WTO panel in Geneva Sep 14-16.