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Beef & the Border - Here we go Again

Looking for a Trade 101 answer here.

Since the US border is closed to Cdn Beef and maybe for an undetermined period, what other options are available for the beef producers?   I realize that US is our biggest trading partner and this is a complex issue, but if they don't want our goods then some else in the world must.   Do we not have other trade partners?

 
Kurhaus said:
Looking for a Trade 101 answer here.

Since the US border is closed to Cdn Beef and maybe for an undetermined period, what other options are available for the beef producers?   I realize that US is our biggest trading partner and this is a complex issue, but if they don't want our goods then some else in the world must.   Do we not have other trade partners?

Not only none within trucking distance, as Bruce said, but fact of life is that if our beef isn't good enough for the US, not many other countries are going to want to buy it.  Case in point: Japan banned Canadian beef when the Americans did.  Our options are limited: reduce the amount of cattle being bred and watch ranching and feedlot operations go bust, or get more meat-processing operations going in Canada.
 
Horse_Soldier said:
Our options are limited: reduce the amount of cattle being bred and watch ranching and feedlot operations go bust, or get more meat-processing operations going in Canada.

Most of our major Canadian meat-processing operations out in western Canada are American owned. They are making a financial killing during the current situation. They don't want a change in the situation and are putting pressure on their American politicans to keep it this way. The beef they   produce for the Canadian market they buy at rock bottom prices but sell at the same high price. Has anyone in Canada noticed cheaper beef in the stores. The beef farmers have sure noticed a fall in their prices paid to them. For the American market they buy & produce in the US as much as possible. They just increase the price for their American customers blaming the unavailability of Canadian beef as the reason. Our beef farmers are losers as are customers on both sides of the border.
 
Horse_Soldier said:
Not only none within trucking distance, as Bruce said, but fact of life is that if our beef isn't good enough for the US, not many other countries are going to want to buy it.   Case in point: Japan banned Canadian beef when the Americans did.   Our options are limited: reduce the amount of cattle being bred and watch ranching and feedlot operations go bust, or get more meat-processing operations going in Canada.

Is the Japanese market not re-opened to Cdn Beef or has it closed its borders again?
 
http://www.mytelus.com/news/article.do?pageID=news_home&articleID=1869010

U.S. meat packers in court to reopen border

CALGARY (CBC) - American meat packers have filed an emergency motion in U.S. court, hoping to get the border reopened to Canadian cattle.

The National Meat Association has asked the Ninth Circuit Court of Appeals to allow it to intervene in the legal battle between the United States Department of Agriculture and rancher lobby group R-CALF.

Last week, R-CALF won an injunction in a Montana court, preventing the USDA from reopening the border to live Canadian cattle under the age of 30 months. Those animals were supposed to be able to start crossing the border again Monday.

The border closed May 20, 2003, after the first Canadian-born case of bovine spongiform encephalopathy was confirmed.

The meat packers want to quash the preliminary injunction R-CALF obtained days before the scheduled March 7 opening.

R-CALF argued that reopening the border would cause economic hardship to American ranchers, who have been enjoying higher prices for their animals, and said Canada hasn't done enough to test for BSE.

The National Meat Association, which represents 500 meat packers across the U.S., says they're running short on animals to slaughter with no access to Canadian cattle.


While a previous attempt to intervene in the R-CALF suit was denied, spokesman Jeremy Russel says they now have a stronger case.

"Dozens of plants have had to lay off workers. Plants, with the border open, they run about 95 per cent capacity, and with the border closed, they've been running 70 per cent, and that's not profitable," Russel said. "It's just not workable."

The meat packers are also looking for millions of dollars in compensation from R-CALF, and Russel says they hope their appeal will be heard within a week.

"The good thing about it, is that they are actually American companies, American people, that are fighting to have the border open, like us Canadians want it open," Jeff Ball, president of the Alberta Cattle Feeders Association, said of the packers' motion. "The industry needs as many people helping us as we can."

Thursday, Canadian beef industry officials said they don't expect the U.S. border to reopen until 2006.

"You could easily get into nine months to a year and a half, in terms of the likely time frames around these court proceedings," said Dennis Laycraft of the Canadian Cattlemen's Association, as he and other producers met with the federal Agriculture Minister Andy Mitchell in Calgary.

Mitchell announced a $50-million contribution to the Canadian Cattlemen's Association's Legacy Fund, which is launching an aggressive marketing campaign to expand markets for Canadian beef.

"Having the ability to sell into increased markets has a direct impact on the viability of individual producers," Mitchell said.

Mitchell says his American counterpart, Mike Johanns, is deciding how to challenge the Montana ruling.

The U.S. Department of Agriculture is set to appear in court next week.
© the CBC, 2005

Just thought I would add this....
 
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