R-CALF vs Canadian Cattle

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Texan

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Group Plans Fight to Keep Ban
On Canadian Cattle in Place

By BILL TOMSON
DOW JONES NEWSWIRES
November 29, 2004; Page C2


The U.S. is making final preparations to lift its 18-month ban on Canadian cattle, but a group of ranchers is preparing to fight in court to stop that from happening.

The R-CALF United Stockgrowers of America has a recent history of besting the U.S. Agriculture Department in court and Chief Executive Bill Bullard said the group will act swiftly as soon as the government moves to allow Canadian cattle across the border.

In the first two North American cases of bovine spongiform encephalopathy, or mad-cow disease, both cattle were Canadian in origin even though the second infected cow was discovered in the U.S.

Mr. Bullard said the U.S. should have begun a strict monitoring program for all Canadian cattle still in the U.S. last year after a case of BSE was reported in Alberta, but Agriculture Department officials instead started work on a new rule to declare Canada a "minimal risk region" and open trade.

"In essence, USDA is trying to turn the U.S. into a country that manages animal diseases rather than a nation that tries to prevent them from entering the country in the first place," Mr. Bullard said.

But the proposed U.S. rule, submitted by the Agriculture Department to the White House Office of Management and Budget Monday for a final review, is widely seen as necessary by Canadian and U.S. industry that depend on trade.

Canada exported 1.6 million head of cattle in 2002 and 491,000 head through May 2003, before the U.S. enacted a ban in reaction to the BSE case.

Canada doesn't have enough slaughter capacity for the cattle it produces and neighboring U.S. packers have traditionally kept overproduction in Canada from depressing prices while profiting from the processing contracts.

J. Patrick Boyle, president of the American Meat Institute, a group representing U.S. packers, said the ban on Canadian cattle continues to tighten lean beef supplies and drive up wholesale and retail prices for ground beef .

wsj.com
 
Texan, did you happen to catch the notice of a high placed Canadian official about BSE. He stated that with more testing in Canada that they were sure to find more cases of BSE in the herd.... I think they tested alittle over 8,000 head last year to our 116,000. I dont know about you, but that doesnt give me a fuzzy warm feeling. 8)
 
I believe the number of animals required to be tested correlates with the number of cattle on inventory. Based on that premise I understand that Canada is currently exceeding the required number of cattle to be tested.

Below are two articles and corresponding links that may help explain this better than my abilities; for those interested. ;-)


Canadian Food Inspection Agency
News Release

CANADA EXCEEDS 2004 BSE TESTING TARGETS
OTTAWA, October 28, 2004 - Canada has surpassed this year's national target for bovine spongiform encephalopathy (BSE) surveillance. As of October 27, 2004, more than 8,600 animals have been tested for the disease this year, with all results returning negative.

"Reaching this year's target ahead of schedule shows that Canada is taking its surveillance responsibilities seriously. High-risk cattle are being reported and tested for BSE," remarked Minister of Agriculture and Agri-Food Andy Mitchell. "This is a very positive first step, and I am confident that we can carry our current momentum forward as we further intensify our surveillance levels."

Canada's surveillance program has tested cattle for BSE since 1992. Following the confirmation of the disease in North America, the Government of Canada announced its intention to increase surveillance levels to at least 30,000 tests annually. This level of surveillance is required to adequately determine the prevalence of BSE in the national herd and to verify that national control measures are limiting the spread of the disease. Following a phased approach, the Government indicated that 8,000 animals would be tested in 2004, followed by at least 30,000 animals in subsequent years. The surveillance program focuses on testing high-risk cattle: dead, dying, diseased and down cattle over 30 months of age and cattle showing neurological symptoms consistent with BSE.

Last month, the Government announced a BSE surveillance reimbursement program and education campaign to encourage producers to report animals for BSE testing. The reimbursement program partially offsets producers' costs related to veterinary examination and carcass disposal when these activities result in the collection of an eligible brain sample, which is required for testing. The education campaign identifies the high-risk cattle that should be tested and promotes a toll-free number, 1-866-400-4244, which producers from across Canada can call to report animals for testing.

http://www.inspection.gc.ca/english/cor ... 028e.shtml


And:


Livestock estimates
As of July 1, 2004
The Canadian cattle herd jumped 6.5% to a record 16.8 million head as of July 1, 2004, a little over a year after the ban on Canadian cattle and beef occurred as result of the discovery of mad cow disease in a single cow.

According to the July Livestock Survey of 18,000 farmers, beef and dairy producers had 1 million more head of cattle on their farms than they did on July 1, 2003. This 6.5% increase was largely because of the collapse of export markets for live cattle.

The survey also found that hog inventories climbed 1.4% to 14.8 million head.

Livestock inventories
July 1 2004

Cattle Hogs Sheep
2003 2004 2003 2004 2003 2004
'000 head
Canada 15,738 16,760 14,631 14,838 1,249 1,238
Atlantic 293 297 366 358 49 48
Quebec 1,420 1,515 4,350 4,350 292 280
Ontario 2,230 2,308 3,620 3,690 353 340
Manitoba 1,590 1,750 2,850 2,890 82 82
Saskatchewan 3,220 3,540 1,250 1,350 145 160
Alberta 6,100 6,400 2,030 2,030 255 248
British Columbia 885 950 165 170 73 80
Note: Figures may not add up to totals due to rounding.



Survey results reflect the impact of a ban on Canadian beef following the disclosure of a single reported case of bovine spongiform encephalopathy (BSE), or mad cow disease, on May 20, 2003. The border remained closed to all Canadian beef exports until September 2003.

At that time, the United States, followed by a number of other countries, agreed to allow imports of Canadian boneless beef from animals younger than 30 months under a permit process. Subsequently, on December 23, 2003, a dairy cow in Washington State tested positive for BSE. The origin of this dairy cow was traced to northern Alberta.

Herd sizes rose in all provinces as exports collapsed following the ban. The herd surged 10.0% in Manitoba, the largest increase, while Saskatchewan's went up 9.9%, and Alberta's rose a more modest 4.9%.


Farmers reported increased levels of cattle on all types of operations. Cow-calf producers reported 9.7 million animals, up 2.7% while the number of cattle on back-grounding operations jumped 24.0% to stand at 3.2 million. Meanwhile, the number of cattle on feeding operations, which totalled 1.5 million, increased 5.3%.

Western Canadian farmers account for three-quarters of the national herd. Alberta alone represented 38.2% or 6.4 million animals as of July 1, 2004.

Exports plunge in the wake of border closures
Since the late 1980s, the Canadian cattle industry has expanded to the point where it was worth an estimated $7.7 billion a year to farmers in 2002. This expansion coincided with freer trade, and was primarily driven by exports to the United States. Domestic consumption remained stable or declined until 2003, when beef consumption increased 5% from 2002 to 14.2 kilograms per person.

Canada's exports of cattle and beef meat to all countries virtually collapsed after the ban was imposed in May 2003, especially considering the vast majority of exports are destined for the United States.

In 2002, Canada exported 1.7 million head of cattle, worth $1.8 billion. With the border closed in May 2003, cattle exports plunged to 505,689 head, valued at $591 million, some 30% of the previous year's level. Exports of live animals in 2004 are non-existent so far, as the border remains closed.

Exports of beef have also dropped dramatically from the $2.1 billion worth registered in 2002. About 84% of Canada's beef exports are destined for American dinner plates.

Although there is some monthly variation, exports of beef from Canada dropped to 789 tonnes in June 2003, staying extremely low until September. At that point, the United States started to allow some beef products into the country and exports climbed during the fall, almost reaching pre-BSE levels (about 40 000 tonnes per month). In January, monthly exports dipped before rising to close in on the pre-BSE levels.

In 2003, the value of beef exports fell 33.0% from 2002. For the first four months of 2004, beef exports were down 11.3% when compared with the value in 2003 prior to the discovery of the BSE-infected animal.


In dollar value, for 2002 as a whole, total cattle and beef exports reached $3.9 billion, the equivalent of $11 million in sales each day. From June 2003 to May 2004 following the border closure, the total value of cattle and beef exports was estimated at $1.4 billion, down 65% from the 2002 benchmark.

In the meantime, domestic slaughter rose 17.4% to a record 2.1 million animals in the first six months of 2004, as beef imports tumbled to less than one-third of pre-BSE levels. Domestic demand for beef remains strong.

Prices and cash receipts tumble
Prices for all cattle—slaughter animals, feeders as well as calves—tumbled because of the domestic oversupply resulting from the plunge in exports.

Prices for slaughter cattle were hardest hit. For example, the July 2003 price for slaughter cattle in Alberta was about 35% of the price before the borders closed. It has struggled upward since then, and in March amounted to 76% of prices last seen in the spring of 2003. This collapse was mirrored across the country.

Feeder cattle prices were also adversely affected, and although the impact was less severe prices have been volatile. In Alberta, prices for feeder cattle fell about 40% and were still down 15% in April 2004.

Canadian farmers' cash receipts for cattle and calves during the third and fourth quarters of 2003 were cut in half, tumbling to $2.0 billion from the $3.9 billion recorded for the same period in 2002.

Government payment programs helped cushion the shock for farmers. The main program, Bovine Spongiform Encephalopathy Recovery Program, is estimated to have paid $443 million to producers between July and December 2003.

Meanwhile, American farmers are enjoying record prices. The drop in the US herd, coupled with the border closure and strong beef demand, tightened the beef supply in the United States.


http://www.statcan.ca/Daily/English/040819/d040819b.htm


Take care.
 
houstoncutter":1dk0tqj9 said:
Texan, did you happen to catch the notice of a high placed Canadian official about BSE. He stated that with more testing in Canada that they were sure to find more cases of BSE in the herd.... I think they tested alittle over 8,000 head last year to our 116,000. I dont know about you, but that doesnt give me a fuzzy warm feeling. 8)


Canada has now tested over 12000 head for BSE. All have come from the 4D population within our herd unlike the US who are testing healthy cattle.

Keep in mind Canada has one tenth the cattle population of the US and by only testing the highest risk cattle are actually testing more than the US.

With increased testing more BSE will be found on both sides of the border.
 
Hold on just a min, I am not against Canada but we are not testing just healthy cattle. The cattle that we are testing do have something wrong with them, and some are healthy cattle that are tested. Wouldn't you like to sample a little of everything and not just healthy or sick cattle?
 
We are testing only 4D cattle because we think that is most likely where we will find BSE if we have it. However, that latest Japanese story about finding the 20 month bull with BSE means you have a point. If I remember correctly, the Japanese use a different test than the rest of the world and just trash anything that looks questionable and they will not test using the test that we use in North America to confirm it so this latest animal could just be a false positive.
 

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