The Citizen, 1999-01-27, Page 16PAGE 16. THE CITIZEN, WEDNESDAY, JANUARY 27, 1999.
Beef producers hear about industry challenges
By Bonnie Gropp
Citizen staff
While beef producers arc facing
many challenges, there is nothing
to panic about, yet.
Charlie Graccy, who has a long
association in the beef and agricul
tural industry and now works for
the national identification program
delivered this message to the Huron
County Beef Producers meeting in
Brussels, Jan. 20.
Graccy’s primary focus was on
the U.S. campaign to halt the
import of Canadian cattle, which he
called the most serious issue the
industry has ever faced. He added,
however, that "it was way too early
to lose our heads over it."
He noted that in 1994 he had said
the cattlemen were "playing in the
scams between detection and rejec
tion."
The heightened U.S. awareness
to the mounting exportation of
Canadian cattle into their country
prompted them to take action. An
attempt to have country of origin
labelling on beef was found to be
illegal, Gracey said, so the Ranch
ers, Cattlemen’s Legal Fund mount
ed a campaign to slop exporting on
the basis of countervailing and
dumping.
The countervailing case claims
that cattle producers in Canada are
assisted by subsidies, primarily the
Canadian Wheat board, said
Gracey.
Dumping essentially means if a
product is being sold cheaper out of
country and is causing injury by
doing so then it is now allowed. "In
agriculture," Graccy explained,
"there is another little wrinkle. Sell
ing cattle below the cost of the pro
duction is illegal." As this has
happened in some instances, a case
has been brought against the Cana
dian Cattlemen’s Association.
The first ruling of the U.S. Inter
national Trade Commission was
that the cases met the very low
minimum threshold lest at this pre
liminary stage to warrant further
investigation. Two out of six voted
against proceeding.
Now further evidence will be
gathered with findings expected in
late spring.
"Nothing much should happen
until May, other than stay alert to
the situation," said Gracey.
Adding that it was his under
standing that packers have been
bidding down on cattle, Gracey
said, "They must see something
happening in May that 1 don't. I
don't think we need to panic yet."
Noting that the case is against
cattle, not beef, Graccy said he
believed the defense team was
going to attempt to have them split
into three groups, feeders, culled
and live slaughter. "They can't
prove the feeders or culled were
sold al a loss so it could be to our
advantage if we can pester them
with three types of cattle," said
Graccy.
The fact that the 1TC voted 4-2
against Canada and 5-1 in favour of
Mexico Gracey said may be turned
to Canada's advantage. "They tend
to talk of total amount (of exported
product) so now that Mexico's out
we're less."
Graccy also said that if Canada
can't sell their live cattle, the pro
ducers will slaughter first then send
product, though it would push
packing houses to the limit.
Should this happen, he believes
that the U.S. will begin again to try
to push the country of origin
labelling.
"One hopes things improve into
May,” said Gracey. "Americans
and Canadians face the same chal
lenges. Il's more to our advantage
to do something to promote our
product rather than fight."
Free trade, Graccy said to him
means that Canadians have as
much right to their product as the
U.S. docs to Canada's, unless one
subsidizes to create an unlcvcl
playing field.
"I think we need to get over this
rough patch and get to the real
issue which is quite simply a crisis
in demand."
Beef consumption down
"I used to think cattlemen
increased production because of
consumer demand," said Graccy.
"But why docs a beef producer
increase his cow herd? Because
cow/calf production is profitable,
because grain was cheap, not
because consumer demanded it."
Gracey noted that having been
away from the industry for some
time he could talk about the issue
as an outsider looking in. "When 1
first left I was surprised that every
discussion wasn't about the cattle
industry. When I went out for
lunch, everyone dicln'i order beef.
There are many, many choices so
that no consumer today buys or cals
anything they don't like."
Graccy said that the last lime he
was in Huron County beef was
number one. Now it's number three
after pork and poultry. "While we
were King of the Hill, we've now
lost our status."
Using a comparison of three
years, 1979 ("The best year the cat
tle industry’s had in the past 50".),
1987 and 1997, Gracey noted a
marked increase in production and
decline in consumption. "While
production has increased 41.7 per
cent, exports have grown eight-fold
and account for 60.8 per cent of the
industry's product."
While the quality of meat has
improved the demand has declined
because of changes in diet and
lifestyle. Another problem, Gracey
said, was the price of the product.
"We need communication. We
say we need to educate consumers,
but we also need to educate our
selves and improve communication
within the industry. We have to
look and see what's right and
wrong," said Gracey.
Herd ident
tags tested
By Bonnie Gropp
Citizen staff
Huron County beef producers
heard about the new national iden
tification program at their annual
meeting in Brussels, Jan. 20.
The rationale of this leading
strategy from the beef industry to
identify national herds, is strictly
for health and safely, according to
Charlie Gracey, guest speaker at
the meeting.
Gracey, who started with the
Canadian Cattlemen's Association
in 1970, then worked with the
Canadian International Trade Tri
bunal is now working for the iden
tification program.
The Canadian Cattle Identifica
tion Agency will be a private enter
prise. "It will be practical, simple
and as low cost as possible because
the guy that will have to do this is
the cow/calf man," said Gracey.
Trials were conducted this past
summer because the tags need to
Continued on page 20
The exec
The Huron County Beef Producers executive for the new term are, back row, from left: Past
President Doug Howatt, Secretary-Treasurer Rosemarie Bishop, OCA director Jack
Flannigan. Front: Second Vice-President Kittie MacGregor, President Allan Powe, First
Vice-President Bill Haines. The annual meeting was held in Brussels on Jan. 20.
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