January 19, 2009

Canada cattle sector eyes opportunities in Asia

Canada's cattle producers may find a potentially large market in Asia, where offal is popular among Asians, according to the Canadian Cattlemen's Association (CCA) president Brad Wildeman.

There is no domestic market for certain cuts, and other products such as beef tongue that are sold for US$1.50 in Canada are marketed for US$22 in Asia, said Wildeman.

Wildeman said if Canadian farmers could sell in Asia some products that might otherwise be discarded, it would add another US$100 or 10 percent to the value of each animal.

However, Agriculture Minister Gerry Ritz said on Friday (Jan 16) that he has secured an agreement in-principle with Hong Kong to withdraw some restrictions placed on Canadian beef.

The new agreement is expected to double Canadian beef exports to Hong Kong, while China could begin opening up its market by April, according to Ritz.

The CCA said if global access returns to the level prior BSE, it would be worth US$5 billion annually to the industry due to opening more diverse markets that allow Canadian farmers to sell more products from each animal.

Wildeman said he will continue pressing Ottawa to do more to open up global markets and to push for the government to take action against the countries that resist at the World Trade Organisation (WTO).

Ongoing restrictions in South Korea and other countries are mostly due to politics and protectionist attitude instead of scientific facts, said Wildeman.