Wed 22 Jun 2005
OTTAWA - With two U.S. food giants controlling over 80% of Canada's beef market, the NDP says it's time the federal government stood up to the packers. NDP Agriculture Critic Charlie Angus says that during the BSE crisis in Canada, Cargill Foods Limited and Tyson Foods have made record profits while Canadian farmers have seen their equity wiped out by low cattle prices. After two years, the packers have solidified their control over the beef industry on both sides of the U.S. / Canadian border. The result is bad news for producers.
"We are living through the worst agricultural crisis in memory, and all this government can do is to offer bandaid solutions to farm families. Meanwhile, Cargill and Tyson are making out like bandits. It's time this government stood up for farm families and took on these agri-giants."
Angus says the packer's profits are obscene in times when many Canadian ranchers are facing record levels of debt. Last summer, Alberta's Auditor General concluded that Cargill, Lakeside (Tyson) and XL Foods saw profit margins jump 281% over the previous year. This spring, packer margins remain at these all-time highs, while the beef prices paid to farmers are still very low.
Angus says the long-term crisis facing agriculture is not BSE, but potential predatory pricing and a virtual monopoly of Canadian cattle markets by the U.S. giants.
"Our farmers are living under a U.S. corporate cattle monopoly. And what do you do with monopolies? You break them up," said Angus. "It's not good enough to talk about encouraging alternative slaughter capacity. We need to put some real teeth into government policy that will ensure that the producers are given a fair shake when they have to deal with Cargill and Tyson."
Angus challenged the Agriculture Minister to set up a regulatory body that will ensure farmers are not exploited by the meat packers when they bring their cattle to market.
OTTAWA - With two U.S. food giants controlling over 80% of Canada's beef market, the NDP says it's time the federal government stood up to the packers. NDP Agriculture Critic Charlie Angus says that during the BSE crisis in Canada, Cargill Foods Limited and Tyson Foods have made record profits while Canadian farmers have seen their equity wiped out by low cattle prices. After two years, the packers have solidified their control over the beef industry on both sides of the U.S. / Canadian border. The result is bad news for producers.
"We are living through the worst agricultural crisis in memory, and all this government can do is to offer bandaid solutions to farm families. Meanwhile, Cargill and Tyson are making out like bandits. It's time this government stood up for farm families and took on these agri-giants."
Angus says the packer's profits are obscene in times when many Canadian ranchers are facing record levels of debt. Last summer, Alberta's Auditor General concluded that Cargill, Lakeside (Tyson) and XL Foods saw profit margins jump 281% over the previous year. This spring, packer margins remain at these all-time highs, while the beef prices paid to farmers are still very low.
Angus says the long-term crisis facing agriculture is not BSE, but potential predatory pricing and a virtual monopoly of Canadian cattle markets by the U.S. giants.
"Our farmers are living under a U.S. corporate cattle monopoly. And what do you do with monopolies? You break them up," said Angus. "It's not good enough to talk about encouraging alternative slaughter capacity. We need to put some real teeth into government policy that will ensure that the producers are given a fair shake when they have to deal with Cargill and Tyson."
Angus challenged the Agriculture Minister to set up a regulatory body that will ensure farmers are not exploited by the meat packers when they bring their cattle to market.
