Canadian boxed beef is a bargain for U.S. meat sellers, especially with the higher exchange rate for Canadian dollars. The major limitation is Canada's beef processing capacity -- 4.4 million head per year, only 12 percent of the United States' capacity. However, Canada is pushing to increase its beef processing output with new and expanded plants. Last year, the Canadian government assistance provided assistance that resulted in a 22 percent increase in beef production capacity.
It would have been a better bargin if our dallar hadn't increased in value by 31% in the last 2 years. And I would like to know what the government assistance to the processing industry was?