Concerns on Canada's latest case of BSE

[Sandhusker]

Concerns About Canada's Latest BSE Case Cause U.S. Cattle Prices to Drop;

Mexico Bans Cattle from Alberta

Billings, Mont. – Bloomberg News reported on Tuesday that, "Cattle fell to the lowest price this month on speculation that export demand for U.S. beef will slow after neighboring Canada last week reported its 14th case of mad cow disease since 2003…"

"There's a little concern long term that some Pacific Rim countries may associate Canada with us," said Lane Broadbent, vice president of KIS Futures Inc. in Oklahoma City, the article states. "We're closely associated as a trading partner and we're bringing in some cattle from Canada as well."

The article states that on Tuesday, Aug. 19, 2008, "Cattle for October delivery fell 0.325 cent, or 0.3 percent, to $1.05625 a pound at 12:07 p.m. on the Chicago Mercantile Exchange, after earlier reaching $1.05175, the lowest for a most-active contract since July 20…Feeder-cattle futures for October delivery fell 0.85 cent, or 0.7 percent, to $1.1265 a pound in Chicago…"

R-CALF USA CEO Bill Bullard said Canada's most recent BSE case was in a 6-year-old Alberta beef cow born years after Canada implemented its 1997 feed ban, and years after the March 1, 1999, date that USDA established as the birth date after which Canadian cattle can be imported to the United States, based on the agency's belief that BSE was effectively controlled in Canada at that time. This latest BSE case, and the seven other Canadian BSE cases born after March 1, 1999, along with all of their herd mates, meet the age requirements established in the U.S. Department of Agriculture's (USDA's) over-30-month rule (OTM Rule) for export to the United States.

"This recent domestic price reaction to Canada's latest BSE case demonstrates that the OTM Rule is harming U.S. cattle producers," Bullard said. "The OTM Rule implemented on Nov. 19, 2007, that allows such higher-risk Canadian cattle into the U.S., is having a greater negative impact on U.S. cattle producers than USDA led the public to believe. In addition to the harm arising from knowingly importing Canadian cattle born while the BSE agent was still circulating in Canada, USDA said its OTM rule would cost U.S. cattle producers $66 million per year, but this cost was based on the agency's low estimate that only 75,000 older cows and bulls would be exported to the U.S. from Canada in all of 2008.

"As of August 16, 2008, Canada has exported 116,309 cows and bulls to the United States," he continued. "This demonstrates just how out of touch USDA is regarding the U.S. cattle industry, and how unreasonable its predictions have been."

Bullard said it is counterintuitive that U.S. cattle prices would be falling at a time when domestic cattle supplies remain low. The OTM Rule is a primary contributor to this phenomenon, as well as to the substantial financial losses experienced by U.S. cattle feeders, he said.

According to USDA's High Plains Cattle Feeding Simulator, cattle feeders have experienced negative net margins during each of the past 12 months, with losses ranging from a low of -$2.85 per head (Sept. 2007) to a high of -$12.21 per head (Jan. 2008).

"There are no health-related or economic-related justifications for USDA's refusal to protect the U.S. cattle industry and U.S. consumers from the introduction of Canadian cattle that were born while BSE was still circulating in the Canadian feed system," Bullard asserted. "By its inaction, USDA is threatening the viability of our domestic cattle industry and setting up U.S. producers for a fall.

"Just today, we learned from a Canadian media source that Mexico has banned imports of live cattle from Alberta, and the Canadian Federal Agriculture Minister Gerry Ritz is reporting that Mexico is 'very concerned that if they're bringing in an older breeding animal, that they may be importing BSE,'" Bullard pointed out. "This action by Mexico clearly shows that despite what USDA says, our export customers continue to have serious concerns about cattle from Canada."

 

[Work Hard and Study Hard]

Concerns About Canada's Latest BSE Case Cause U.S. Cattle Prices to Drop;

Mexico Bans Cattle from Alberta

Billings, Mont. – Bloomberg News reported on Tuesday that, "Cattle fell to the lowest price this month on speculation that export demand for U.S. beef will slow after neighboring Canada last week reported its 14th case of mad cow disease since 2003…"

"There's a little concern long term that some Pacific Rim countries may associate Canada with us," said Lane Broadbent, vice president of KIS Futures Inc. in Oklahoma City, the article states. "We're closely associated as a trading partner and we're bringing in some cattle from Canada as well."

The article states that on Tuesday, Aug. 19, 2008, "Cattle for October delivery fell 0.325 cent, or 0.3 percent, to $1.05625 a pound at 12:07 p.m. on the Chicago Mercantile Exchange, after earlier reaching $1.05175, the lowest for a most-active contract since July 20…Feeder-cattle futures for October delivery fell 0.85 cent, or 0.7 percent, to $1.1265 a pound in Chicago…"

R-CALF USA CEO Bill Bullard said Canada's most recent BSE case was in a 6-year-old Alberta beef cow born years after Canada implemented its 1997 feed ban, and years after the March 1, 1999, date that USDA established as the birth date after which Canadian cattle can be imported to the United States, based on the agency's belief that BSE was effectively controlled in Canada at that time. This latest BSE case, and the seven other Canadian BSE cases born after March 1, 1999, along with all of their herd mates, meet the age requirements established in the U.S. Department of Agriculture's (USDA's) over-30-month rule (OTM Rule) for export to the United States.

"This recent domestic price reaction to Canada's latest BSE case demonstrates that the OTM Rule is harming U.S. cattle producers," Bullard said. "The OTM Rule implemented on Nov. 19, 2007, that allows such higher-risk Canadian cattle into the U.S., is having a greater negative impact on U.S. cattle producers than USDA led the public to believe. In addition to the harm arising from knowingly importing Canadian cattle born while the BSE agent was still circulating in Canada, USDA said its OTM rule would cost U.S. cattle producers $66 million per year, but this cost was based on the agency's low estimate that only 75,000 older cows and bulls would be exported to the U.S. from Canada in all of 2008.

"As of August 16, 2008, Canada has exported 116,309 cows and bulls to the United States," he continued. "This demonstrates just how out of touch USDA is regarding the U.S. cattle industry, and how unreasonable its predictions have been."

Bullard said it is counterintuitive that U.S. cattle prices would be falling at a time when domestic cattle supplies remain low. The OTM Rule is a primary contributor to this phenomenon, as well as to the substantial financial losses experienced by U.S. cattle feeders, he said.

According to USDA's High Plains Cattle Feeding Simulator, cattle feeders have experienced negative net margins during each of the past 12 months, with losses ranging from a low of -$2.85 per head (Sept. 2007) to a high of -$12.21 per head (Jan. 2008).

"There are no health-related or economic-related justifications for USDA's refusal to protect the U.S. cattle industry and U.S. consumers from the introduction of Canadian cattle that were born while BSE was still circulating in the Canadian feed system," Bullard asserted. "By its inaction, USDA is threatening the viability of our domestic cattle industry and setting up U.S. producers for a fall.

"Just today, we learned from a Canadian media source that Mexico has banned imports of live cattle from Alberta, and the Canadian Federal Agriculture Minister Gerry Ritz is reporting that Mexico is 'very concerned that if they're bringing in an older breeding animal, that they may be importing BSE,'" Bullard pointed out. "This action by Mexico clearly shows that despite what USDA says, our export customers continue to have serious concerns about cattle from Canada."

When Mexico is banning Canada cattle and we aren't that's pretty bad. Their new tourism slogam must be " Don't drink our water but eat our beef, IT'S NOT CANADIAN".

 

[Anonymous]

This Canadian reporter is reporting it as a ban on Canadian Beef too :???: ....

Mexico says "no mas" to Canadian beef



by SARA LOFTSON

Cochrane Times - Canada

Wednesday August 27, 2008



Recently the Canadian Food Inspection Agency has confirmed another case of mad cow disease in Alberta. As a result it's been reported that Mexico has shut its borders to Alberta beef.



"Mexico unfortunately has acted against international rules and has put a restriction on live cows from Alberta so the Canadian government is working with Mexico to resolve this problem," said Jeff Kucharski.



"We don't think other countries will follow in their footsteps, but if they do we'll have to follow up and work with them," he said.



Because the beef industry continues to be under extreme competitive pressure the province decided to form the Livestock and Meat Strategy (in June) to revitalize the livestock industry, said Kucharski, who was appointed as its CEO at the end of July.



"The industry since the BSE crisis in 2003 has been suffering from lack of access to key markets and low prices and high costs especially the high Canadian dollar, high cost of inputs like feed and labour," said Kucharski.



"We are still shut out of many markets in the world, at the same time (we are) seeing more global beef imports from the U.S. and Australia."



Kucharski said that Canada guarantees food safety by removing specified risk material (SRM), at the packing plant.



"We remove the brain, the eyes and spinal cord where the mad cow disease exists and because we remove that from each animal there is no chance that BSE is a risk to a consumer."



The right now agency is focusing on the Alberta Livestock and Meat Strategy -- 2008-2013 Implementation Plan, which outlines eight priorities including, creating a shared vision to become global competitors, strengthening animal health and food safety to improve consumer confidence, investing in the Livestock Information System Alberta, differentiating products to capture new markets, improving marketing, becoming environmental stewards, reducing cost and regulatory barriers and improving governance and effectiveness.



"The agency is really about taking leadership over those eight initiatives and those initiatives should help the industry over time. This is a long-term strategy.



"For Cochrane area ranchers it means that once we've fully implemented the strategy farmers and ranchers are going to understand their place in the supply stock, packing plant and be able to meet consumer needs.



"We will create systems that enable producers in your area to get more information on how their calves are treated at the feedlot. They'll also be able to create new projects to cater to consumer needs in supply chains.



"The high cost of feed, fuel, fertilizer and labour at the packing plants means we're a high cost producer of meat. We need to do something different then we used to do."



New funding totaling $150 million will be made available for livestock producers in January 2009. Cochrane and area livestock producers can apply for some of this funding if they fully comply with the new strategy.



For details visit www.agric.gov.ab.ca.



cochranetimes.com

 

[Kato]

She needs to get her facts straight.

Mexico blocks Alberta cattle
Ottawa says move lacks scientific merit
Gina Teel, Calgary Herald
Published: Thursday, August 21, 2008
Mexico has banned imports of live cattle from Alberta, following the discovery of Canada's 14th case of mad cow disease in the province last week.

Mexico is banning imports of beef and dairy breeding cattle -- but not stopping the flow of beef into the country -- in a move Federal Agriculture Minister Gerry Ritz said has no legitimacy from a scientific perspective.

Canada and Mexico are both considered as controlled-risk status for BSE, or bovine spongiform encephalopathy, as recognized by the World Organization for Animal Health, or OIE.


They're (Mexico is) very concerned that if they're bringing in an older breeding animal, that they may be importing BSE; that's the genesis of this," Ritz said in a telephone interview Wednesday.

Rob McNabb, general manager of operations at the Canadian Cattlemen's Association, said Mexico has given written notice of the ban to the Canadian Food Inspection Agency.

Mexican authorities are describing the move as a temporary prohibition of live cattle from Alberta, he said, while they undertake their own risk assessment "and assure themselves that what Canada's doing to ensure safety is sound."

No further details about a timeline were available.

The impact of the ban in Alberta is not thought to be large. An estimated 200 to 300 breeder cattle have been exported to Mexico from Alberta since March 2008, when the border reopened to live cattle, allowing for the transit of Canadian cattle exported to Mexico through the United States.

McNabb said the cattlemen's association is clearly disappointed -- particularly in a NAFTA partner taking this kind of action.

"We don't understand what their basis is," he said. "We're both controlled risk as identified by OIE, so there should be virtually no restrictions on anything."

The CFIA has said this latest case of BSE should not affect exports of Canadian cattle or beef.

McNabb said for this to happen so soon after re-establishing an important market for beef and dairy breeding cattle is a blow.

"This is just going to be another disruption to our recovery process," McNabb said.

Gerald Ollis, Alberta's chief veterinarian, said the fact Mexico wants to stop live animal trade goes against the recommendations out of the OIE.

The concern is that other countries follow Mexico's move, he said.

Canada has a feed ban in place, continues with its surveillance and is trying to detect as many positive cows in the Alberta herd as possible, he said.

"What I find strange is, why pick on Alberta?" Ollis said, noting BSE has also been found in the U.S., Manitoba and British Columbia, while the initial case in May 2003 was in an animal born in Saskatchewan.

Herb McLane, executive vice-president of the Canadian Beef Breeds Council, said there are no known Alberta cattle in the pipeline at this time.

However, four loads of beef breeding cattle from Alberta valued at about $500,000 entered Mexico last week.

McLane said while the development is frustrating, the association is taking it in stride.

"We've been living with this now since May of 2003, so . . . it seems like just about the time we start to gather some momentum under us, re-establish market access and re-establishing trade routes, that we have an impediment," he said.

McLane said industry officials plan to work with the Canadian government to help resolve the impasse as quickly a possible "and we'll stand on the science."

Ritz said Canadian officials will meet with their Mexican counterparts to again discuss Canada's strict BSE testing regime and other measures in place, to prove that the country is safe.

"I'm not exactly sure if it's political posturing or if there's some pressure coming to bear on Mexican authorities, but I know they've had some real push back by certain groups down there on NAFTA as a whole," Ritz said.

The minister added he's quite prepared to speak to Mexican agriculture minister Alberto Cardenas directly, but is trying to work through the details and should have more information in a day or two.

If Alberta isn't able to export cattle into Mexico, there's a global demand for Canadian genetics in both beef and dairy, Ritz said.

"Our problem is going to be having enough animals to fill the demand. So if Mexico has decided they want to cut out some, it's their loss, not ours," the minister said.

Last Friday, the CFIA confirmed Canada's 14th case of BSE, this time in a six-year-old beef cow from Alberta.

The first, discovered in May 2003, resulted in dozens of countries banning Canadian beef and animals, costing the industry an estimated $7 billion. Much of that trade has since resumed, in full or partial form.

One step forward and two steps back....... :roll: :roll: :roll: :roll: No wonder all our neighbours have gone out of cattle and sprayed their hay fields with Roundup....

 

[PORKER]

However, four loads of beef breeding cattle from Alberta valued at about $500,000 entered Mexico last week.

They're (Mexico is) very concerned that if they're bringing in an older breeding animal, that they may be importing BSE; that's the genesis of this," Ritz said in a telephone interview Wednesday.

The impact of the ban in Alberta is not thought to be large. An estimated 200 to 300 breeder cattle have been exported to Mexico from Alberta since March 2008, when the border reopened to live cattle, allowing for the transit of Canadian cattle exported to Mexico through the United States.

 

[DiamondSCattleCo]

"Bullard said it is counterintuitive that U.S. cattle prices would be falling at a time when domestic cattle supplies remain low."

Bullard needs to look at the other dozen or so things that influence US cattle prices. Idiot. Our prices have mirrored US prices, not the other way around. If R-Calf fired Bullard and adopted a stance of actually representing facts instead of twisting things around, they'd maybe gain some credibility and actually start helping producers.

Rod

 

[Tex]

Rod, what do you think about the USDA and the U.S. courts saying Creekstone can not test and that the government is the final arbitor of truth?

I think this is a very, very serious confiscation of power by the government by your neighbor down south.

 

[DiamondSCattleCo]

Rod, what do you think about the USDA and the U.S. courts saying Creekstone can not test and that the government is the final arbitor of truth?

I look at this as two completely separate issues:
1) Canadian border closure - The USDA utilizing sound science based on majority world wide opinion as to what constitutes safe beef and facing the reality that the US's own beef stocks are closely tied to Canadian stocks, therefore the risk of BSE is the same. Sure its a reversal of their initial knee-jerk reaction of slamming the border shut a few years ago, but at least its based on some sort of science and reasoning.

2) Creekstone - Yes, I agree. Its a serious breach of trust for the USDA to be determining that ONLY the gov't gets to test for BSE and I hope that Creekstone is able to get a reversal on this decision.

I can't help but think that RCalf might have been useful in the Creekstone fight had their credibility not been damaged so much by Dullard and his mouth pieces twisting facts and spreading outright lies. Its unfortunate that US producers find themselves in the same boat as Canadian producers in that neither of us has adequate representation either in government or in agencies that are supposed to be representing us.

Rod