Canada Ready to Restructure Its Beef Industry

The Canadian government Sept. 10 announced it is developing plans, including a $488 million investment, to help Canada’s livestock industry reposition itself to ensure its long-term viability. The strategy has been developed with the provinces, territories, the Canadian Cattlemen’s Association and other industry groups. The strategy includes continuing efforts to reopen the U.S. border, taking steps to increase ruminant slaughter in Canada, introducing measures to sustain the cattle industry until capacity comes online and expanding access to export markets for livestock and beef products.

“Since May 2003, the situation facing Canada’s livestock industry has become urgent and the government of Canada is providing innovative ways for producers to manage in these difficult times,” said Agriculture and Agri-Food Minister Andy Mitchell.

Governments will take steps to facilitate the building of slaughter capacity in Canada. Plans are already underway to expand capacity, and in order to accelerate this process a number of measures are being implemented.

Measures to sustain the industry until domestic capacity is in line with production levels are also being introduced. Cash flow and liquidity issues will be addressed through a special accelerated cash advance provision under the Canadian Agricultural Income Stabilization (CAIS) program. This component will provide assistance for breeding cows and other specified ruminants. In addition, in order to help manage the current oversupply of cattle, set-aside programs will be introduced for fed and feeder animals.

Canada will build upon previously announced initiatives to further strengthen the scientific capacity and regulatory framework to ensure the health of the Canadian herd and the safety of beef products. These additional measures include implementing a reimbursement program to increase access to animals targeted for BSE testing and ensure Canada has a world-leading tracking and tracing system for livestock.

“Through these concerted efforts, I am confident that we will regain and expand our international markets,” said Minister Mitchell. The measures contained in this strategy will benefit more than just the cattle industry. For example, other ruminants would be eligible for increased slaughter capacity and CAIS advances. Dairy producers would also be eligible for compensation under the CAIS program for declines as a result of the impact of BSE. If required, additional measures would be considered to address specific needs of specific sectors.

The strategy contains a number of elements, some of which are funded solely by the federal governments, some by the provinces and some in which governments have agreed to act together.