October 11, 2005

US border not likely to fully reopen till 2007

The US is not likely to fully reopen its borders to Canadian cattle until 2007, Canadian Cattlemen's Association and other groups warned local producers, dashing any hopes that the USDA would publish a new rule soon that would allow by 2006 Canadian imports of older cattle and breeding stock.

Industry experts explained that the USDA is now being extra careful in developing the new trade rule, to ensure it can fight any possible lawsuits from US protectionist groups such as R-CALF, which represents about 18,000 American ranchers.

This prediction is bad news to cattle producers across Canada, especially those in the dairy and beef production business. Beef producers with cattle over 30 months of age (OTM) will also feel the pinch.

As of last July, there were more than 900,000 surplus OTM cattle in Canada, according to Statistics Canada.

The Canadian Livestock Genetics Association estimates that the continued closure will cost the domestic breeding industries about AU$300 million annually in lost sales.