November 21, 2007

 

Canada worries on expanded US beef trade

 

 

Although the United States has on Monday (November 19) lifted restrictions on Canadian cattle and beef imports, Canadian ranchers are wary of a pending court challenge to the new measures as markets will still remain far from profitable.

 

The US has banned Canadian beef and cattle trade in May 2003 due to mad cow disease.

 

But battered Canadian ranchers are wary of a pending court challenge to the new measures, and trade and markets remain far from profitable, the president of the Canadian Cattlemen's Association said.

 

According to Hugh Lynch-Staunton, president of the Canadian Cattlemen's Association, the renewing trade could mean "a lot of things that seemed to have lined up against us."

 

The United States, Canada's largest export market, has allowed imports of live cattle under the age of 30 months since 2005, as well as meat from young animals, which are considered at low risk for bovine spongiform encephalopathy, known as mad cow disease, which takes years to incubate.

 

But a new rule allows imports of cattle born on or after March 1, 1999, as well as meat from all animals, recognizing Canada's safeguards against the brain-wasting disease.

 

The expanded trade could eventually boost competition and prices for older livestock, Lynch-Staunton said, although he said he expected a slow and cautious start.

 

The new rule is opposed by activist rancher group R-CALF USA and several US consumer groups, which have asked a South Dakota court for an injunction to stop the trade, and filed a request for a temporary restraining order on Friday.

 

Lynch-Staunton said the case could make possible consumers "leery" in investing or buying Canadian meat.

 

He said it was hard to project how many extra cattle would cross the border, partly due to the strong Canadian currency.

 

But more Canadian ranchers are trying to sell their herds because of heavy financial losses, shifting land into more lucrative grain production, he said.

 

Canadian agriculture ministers over the weekend agreed to help cattle and hog producers weather losses from the soaring currency and feed costs.

 

Producers need loans and advances to stay in business, Lynch-Staunton said, but he said aid must comply with trade agreements to head off any trade battles.