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Cdn. Trucks Short For US Cattle Demand
WINNIPEG, Jul 26, 2005 (Resource News International via COMTEX) -- The Canadian cattle industry may be unable to meet US demand for cattle since the reopening of the border last week due to a shortage of hauling firms, sources said.
According to Herb Lock, a cattle analyst with Farm Sense
Marketing, there is a noticeable shortage of livestock hauling
firms around.
"A lot of these people have found alternative jobs, some in the
oilpatch, where pay is leaps and bounds above what they can make
trucking," Lock said. "Why would these individuals want to leave,
unless they can be guaranteed steady work?"
Lock said that with an additional court action still pending, the
border could easily be closed to Canadian cattle again.
Prior to the border closure in 2003, 100 to 120 truckloads of
Manitoba cattle were crossing the US border each week, according
to Bob Dolyniuk, general manager of the Manitoba Trucking
Association.
"If all cattle available were to ship tomorrow, we wouldn't be
able to handle it," Dolyniuk said, "but if it ramps up slowly,
we'll be okay."
Since the border reopened, the Canadian Food Inspection Agency
has issued 123 certificates to Canadian drivers clearing 7,597
cattle to export to the US.
However, Dolyniuk said the trucking industry has suffered from a
shortage of drivers for the past few years, particularly when it
comes to traveling to the US.
"Traditionally, the international market suffers most from a lack
of drivers," Dolyniuk said. "Drivers have to travel far from home
and they're away longer. There's also a lot of restrictions on
what (Canadian) drivers can do in the US."
Stan Eby, President of the Canadian Cattleman's Association, said
a lack of drivers is certainly a restriction, but it will take
time to know what effect it could have.
"This is still in it's infancy," Eby said. "It's still too early
to tell where we are in terms of demand."
He noted that while some cattle has been exported from Manitoba,
Alberta, and Ontario to the US since the ban was lifted, US
cattle was being processed in Ontario on Friday.
"Clearly trade is working both ways," he said.
Mike Jubinville of ProFarmer Canada said he doesn't expect to see
a lot of cattle being exported to the US because Canadian feeder
cattle prices compare favorably with prices in the US.
"There's no price incentive to ship to the US right now," he
said. He feels drivers won't put up with border hassles if there
is little spread between Canadian and US prices.
Costs may also keep the Canadian livestock industry from shipping
cattle to the US. Haney, president of the Canada Beef Export
Federation said fuel costs have risen sharply since 2003, making
it more expensive to haul cattle long distances.
WINNIPEG, Jul 26, 2005 (Resource News International via COMTEX) -- The Canadian cattle industry may be unable to meet US demand for cattle since the reopening of the border last week due to a shortage of hauling firms, sources said.
According to Herb Lock, a cattle analyst with Farm Sense
Marketing, there is a noticeable shortage of livestock hauling
firms around.
"A lot of these people have found alternative jobs, some in the
oilpatch, where pay is leaps and bounds above what they can make
trucking," Lock said. "Why would these individuals want to leave,
unless they can be guaranteed steady work?"
Lock said that with an additional court action still pending, the
border could easily be closed to Canadian cattle again.
Prior to the border closure in 2003, 100 to 120 truckloads of
Manitoba cattle were crossing the US border each week, according
to Bob Dolyniuk, general manager of the Manitoba Trucking
Association.
"If all cattle available were to ship tomorrow, we wouldn't be
able to handle it," Dolyniuk said, "but if it ramps up slowly,
we'll be okay."
Since the border reopened, the Canadian Food Inspection Agency
has issued 123 certificates to Canadian drivers clearing 7,597
cattle to export to the US.
However, Dolyniuk said the trucking industry has suffered from a
shortage of drivers for the past few years, particularly when it
comes to traveling to the US.
"Traditionally, the international market suffers most from a lack
of drivers," Dolyniuk said. "Drivers have to travel far from home
and they're away longer. There's also a lot of restrictions on
what (Canadian) drivers can do in the US."
Stan Eby, President of the Canadian Cattleman's Association, said
a lack of drivers is certainly a restriction, but it will take
time to know what effect it could have.
"This is still in it's infancy," Eby said. "It's still too early
to tell where we are in terms of demand."
He noted that while some cattle has been exported from Manitoba,
Alberta, and Ontario to the US since the ban was lifted, US
cattle was being processed in Ontario on Friday.
"Clearly trade is working both ways," he said.
Mike Jubinville of ProFarmer Canada said he doesn't expect to see
a lot of cattle being exported to the US because Canadian feeder
cattle prices compare favorably with prices in the US.
"There's no price incentive to ship to the US right now," he
said. He feels drivers won't put up with border hassles if there
is little spread between Canadian and US prices.
Costs may also keep the Canadian livestock industry from shipping
cattle to the US. Haney, president of the Canada Beef Export
Federation said fuel costs have risen sharply since 2003, making
it more expensive to haul cattle long distances.