The Rural Voice, 2005-01, Page 25over the year.
"Exports are moving in the right
direction and imports are down."
With surveillance testing, Martin
said that it is important to maintain
confidence. "We have to be seen
internationally as being pro -active
regarding BSE."
A target figure of testing 30,000
cattle in 2005 has been set. "We are
being recognized as a country that is
meeting the issue head-on. This will
only strengthen our trade position."
While he had no numbers for
consumption over 2004,
Martin said it had risen five
per cent in 2003 from the previous
year. "The consumer support was
there. They've been behind us 100
per cent."
On a per capita basis for
consumption, beef is above pork and
below chicken. "Overall
consumption has been good."
Inventory has certainly been an
issue, said Martin, as the numbers
have grown, up four or five per cent
from last year. Currently Ontario has
just over 400,000 cows. with the west
having higher numbers. "Most of this
can be attributed to the fact that guys
are just not willing to take less than
nothing for that cow they've fed."
Slaughter capacity is currently at
around 80,000 kills per week. Martin
said there is a potential for new
plants and more expansion. "There is
potential for substantial growth in
next year and beyond.
"The bottom line is, however, that
we do have cattle in the system. But
the bigger issue is that the cull rates
are obviously down because these
animals tend to go back into a herd.
The producer perhaps will re -breed
hoping for a better price than they've
been able to get for over a year now."
Dave Stewart, executive
director/manager with the Ontario
Cattlemen's Association (OCA)
updated on the BSE contingency
plan.
Stewart said that it had become
apparent in the spring that the
information OCA was receiving
about getting the border open was not
as accurate as it should have been.
"Producer optimism had hit bottom.
People weren't even calling anymore
to ask when the border might open.
Also the banks were getting tougher
regarding financing as well."
Another issue was that there was
no bottom to the market. "It just kept
dropping. The market was
completely dysfunctional."
Stewart also noted that at the same
time "consumers, God bless them,
didn't back off."
The objective for OCA was to
come up with a national program that
would restore confidence, reassure
lenders of viability, and focus less on
the border while ensuring that when
it opened the industry would be
prepared.
One of the areas to consider was
increasing the slaughter capacity in
Canada. Also, said Stewart, "We
need to get our dependence on the
United States down, so we were
working at getting export markets."
The alternative tax and financing
strategy which OCA requested didn't
happen. "You don't always get what
you ask for."
Stewart also stated that it was
important to "allow markets to
operate at optimal capacity through
normal market channels. We've
actually hit weeks of 82 per cent
which is good performance from the
plants."
The money from the federal and
provincial government has been
helping to keep the industry alive,
and Stewart said OCA is continuing
to lobby for money for producers.
Finally, he said. they hope to
eliminate supplementary import
permits. "We want the capacity put in
place to have a market here in
Canada. When that border opens it's
unlikely that any cattle over 30
months will cross, so we need to
have a market here for them."
Stewart also defended government
saying that it is easy to "slam" them,
but "we have worked tirelessly with
government and they have worked
tirelessly with us. The government
has supported us. These are complex
programs we've had to work
through."
Bobby Seeber, a senior policy
advisor with OMAF was present to
discuss BSE and trade. "Where are
we 18 months later?"
"I'm here I guess to answer the
burning question. When will the
border open? I'll cut to the chase. I
don't know. If Bush couldn't give a
definite answer, it's not up to me
either "
Seeber explained that the process is
underway, but there's a lot of work to
be done. "That's most of my good
news tonight."
USDA considered over 1,500
comments and have submitted a
proposed rule to the U.S. Office of.
Management and Budget. The next
step, said Seeber, can take up to 90
days.
Should they deem it a major rule, it
could be subject to a congressional
review, said Seeber. What this would
mean in terms of time is unknown.
However, he said, "If they deem it
to be economically significant, and
the U.S. president has given every
indication that they should expedite
it, it would go back to USDA which
could publish a final rule and set an
implementation date."
"We are likely looking at a five to
six month process ahead of us."
The positive side, he re -iterated
was that Bush had said "he was
supportive of this rule moving
forward."
Seeber said as well it is
important to remember that all
parties are up against
agricultural protocols that have been
in place for many years. "What we
don't know are the details of the rule.
What kind of requirements might rest
with this rule."
The other unknown is what lobby
groups can do to slow the process.
"The resumption of the R -CALF
court challenge hangs over this."
While there is still a U.S.
perception of this being a contentious
issue, Seeber said there are also
strong American proponents of
favour of normalizing trade. "But
keep in mind that many below the
border believe there is no BSE there.
At the official level, at least there is
an understanding that what we have
here is equal to what's in the U.S."
That key markets are being re-
opened is good news. said Seeber.
suggesting that jurisdictions outside
Canada see that the efforts here to
ensure the safety of the beef have
been sufficient.
"I'm sure I haven't made you
happy, but Canada has fared well. I
know it's no solace to you, but while
the re -opening of the borders seems
frustratingly gradual, it is moving at
a lightning pace compared to the
experience of other nations."
JANUARY 2005 21