Crisis in Canadian Cattle Industry Far From Over

July 14, 2005 was a critical day for the Canadian beef industry.  That’s the day the U.S Ninth Circuit Court of Appeals overturned a lower court’s preliminary ban on live cattle exports from Canada to the United States.  The ruling clearly supports the United States Department of Agriculture’s (USDA’s) rule to permit imports of Canadian cattle and an expanded list of beef products.

The United States banned Canadian cattle and other ruminant products in May 2003 after Canada discovered its first case of mad cow disease.  Almost 2 years later, many Canadian cattle farmers expected the border to reopen on March 7, 2005. Unfortunately, legal proceedings in the United States prevented that from happening. Since the border closure, cattle farmers in Ontario alone have lost well over $500 million.

This past Monday, I was pleased to see the first truckloads of Canadian cattle moving south across the border.  These latest shipments of live animals join the 632,000 tonnes of Canadian beef that has been exported to the U.S. since the border re-opened to packaged boneless beef from cattle under 30 months in August 2003.  Canadian processors are now also permitted to export bone-in beef from these younger animals.

The reopening of the border isn't expected to end the industry's woes immediately, in part because many people employed as livestock truckers have taken other jobs. As well, a number of northern U.S. packing plants have scaled down their operations in the absence of Canadian cattle to process.

If the border closure taught us anything, it’s that we can’t continue to do business in the same fashion we did prior to the border being closed.  Among other things, we need to look at new foreign markets for our beef and to increase our domestic federally inspected slaughter capacity.

Over the past year, members of my Farm Council and many other local farmers have told me that Canada needs a long-term national food strategy, and that our federal and provincial governments need to make a commitment to our agricultural community.

In 2002 – the last normal year of trade for Ontario beef farmers – beef was the second largest commodity in terms of annual farm gate receipts with a value of approximately $1.2 billion.  Beef exports from Ontario to the U.S.A in 2002 were valued at $354 million in live cattle and an additional $292 million in beef product.

Since taking office, I have learned much about the challenges facing farmers. During my first year in office, I have also become aware that many multi-generation farms in central Ontario could face financial ruin if clear direction from government is not forthcoming.

I believe the federal government could and should do more to ensure farmers keep on farming today, tomorrow, 10 years from now, and 50 years from now.  That’s why I will introduce a Private Member’s motion in the House of Commons later this year aimed at developing such a long term strategy. 

As many of you know, I have made “protecting family farms” my #1 priority as your Member of Parliament.  I think that all Canadians should recognize all the hard work that farmers do to provide food for our families, and we should appreciate what farm families add to the health, wealth, and security of Canada.