November 19, 2003

 

 

Canada's Ottawa To Fork Out $120 Million To Aid Ranchers Affected By BSE

  

Canada's Ottawa is prepared to spend another $120 million to help ranchers cull older cattle nobody wants because of Canada's mad cow crisis, federal Agriculture Minister Lyle Vanclief said Tuesday.

 

"That's brand new money," the minister said from Ottawa. The $120 million is the federal government's share of an aid package for producers to be split 60-40 with the provinces and worth $200 million if they all sign on. Vanclief said he isn't sure all the provinces will go along with the program. Later this week, the minister would announce more details regarding the issue. 

 

Cattle prices collapsed after bovine spongiform encephalopathy (BSE) was found in a northern Alberta breeder cow May 20, costing producers $1.8 billion in lost exports alone.

 

Some boneless cuts of meat from animals under 30 months are being accepted in some countries, including the United States, Canada's biggest beef trading partner.

 

But there are still no international markets for Canadian beef from older animals. That has created a backlog of cows and bulls over 30 months old.

 

Vanclief said the new program, which will also apply to dairy cattle, would ensure producers get something for their culls. That will allow them to decide when to market their older animals.

 

"Hopefully what we'll be able to do is lengthen out the amount of time they would have to slaughter that animal and still participate in the program," the minister said.

 

But the cattle industry says while the new program is less likely to create a bottleneck at slaughterhouses, packers may simply discount the price they pay producers by the amount of the government payment.

 

"It's still going to impact the market price," said Rob McNab with the Canadian Cattlemen's Association, which does not support a cull.

 

"The packing plants get complete benefit from the program. They can drop their price to zero knowing farmers will still get something."

 

Alberta, which is home to more than half of Canada's 13 million cattle and has taken the biggest economic hit since international markets banned Canadian beef, has already announced it will spend $100 million on a cull program.

 

Earlier this summer, Ottawa and the provinces agreed to a $460-million aid program to help the industry.

 

Vanclief also spoke Tuesday with Ann Veneman, U.S. Secretary of Agriculture, about allowing American feeder cattle into Canada year-round. It's a decision some in the cattle industry call long overdue and a key move in international trade.

 

"What we're saying is that the regulations will be for cattle coming in for feeding and for slaughter - not for the breeding herd," said Vanclief.

 

Interested parties will have 30 days to examine the proposed rule change - a move similar to what the American government is doing with its proposal to accept live cattle under 30 months from Canada.