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More on Canadian tariffs on US corn

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Sandhusker

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GUELPH, ON, Dec. 15, 2005 /CNW/ - The Ontario Cattlemen's Association and Ontario Cattle Feeders Association cattle industry are extremely disappointed with a ruling released today in which the President of the Canada Border Services Agency made a preliminary determination of dumping and subsidizing, respecting unprocessed grain corn. A Provisional duty will now be payable on the subject goods that are released from Customs.

Effective today, provisional anti-dumping duties of US $0.58 and a
provisional countervailing duty of $1.07 US per bushel (total $1.65 US, or
approx. $1.90 CDN) are payable on U.S. corn imports. The Animal Industry Corn Users coalition (comprised of the Canadian Cattlemen's Association, the Canadian Pork Council and Animal Nutrition Association of Canada) estimates that if Canadian corn prices rise by the same amount as the duty, it could add feed costs of up to $100 per head of cattle in corn-feeding regions such as Ontario.

"That $1.65 per bushel translates to $100 per head in additional feed
costs," says Ontario Cattlemen's Association President, Ian McKillop. "As our industry was just beginning to come out of the BSE crisis, producers needed to make money on this turn of cattle. But instead, the cattle industry's recovery strategy is now in jeopardy."

This strategic plan, developed largely by CCA and announced by the
Federal government in September 2004 focuses on reducing the dependency of Canadian cattle producers on exporting live cattle. If Canada builds the capacity to feed and process its own cattle, the industry can immunize itself against potential future market losses for live cattle exports. The plan has been successful in increasing capacity from approximately 72,000 - 93,000 head per week.

Animal industry corn users are sympathetic to the market revenue
situation of Canada's corn growers, and the need to achieve fair prices for
feed. In fact, OCA and CCA representatives have met several times with
Canadian corn growers to try and identify mutually acceptable solutions. The two organizations have proposed ways of encouraging Ontario cattle feeders to use Canadian corn when supplies are high and prices are low. In return, corn growers were asked to assure continued supply on a consistent year-round basis, even when supplies are low and prices are high.

The corn growers' response was disappointing, and forced Ontario cattle
feeders to rely on imports, as well as Canadian corn to secure supply on a consistent year-round basis.

"We have heard accusations that cattle feeders are only interested in
maintaining a cheap supply of corn from the United States," says Jim Clark, General Manager of the Ontario Cattle Feeders Association. "The truth is not that we want low-cost corn, but that we need cost-parity between US and Canadian cattle feed inputs. That is absolutely necessary for long-term survival of the Canadian cattle feeding sector".

The main feed source for finishing cattle in Canada, is grain. The type
of grain fed largely depends on its cost and availability. Most of the cattle
fed in Western Canada are fed primarily on barley, while most of the cattle fed in Ontario, are fed on corn. Thus, Canadian cattlemen, and more
particularly Ontario cattlemen, are customers of the Canadian corn growers, who are seeking to increase the price of this vital input.

"It's a sad day when the government will sit back and allow farmers to go
the route of countervail instead of stepping up to the plate with assistance,
forcing an action that will have detrimental affects on all of us, as a farming sector," concludes Clark.
 
A

Anonymous

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frenchie said:
Econ101 said:
What happened to NAFTA?

Sad when it happens to you ain,t it. :wink:

frenchie- Maybe you should think again-- If you are a cattleman... Because its the Canadian cattleman getting the proverbial shaft....
 

Econ101

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frenchie said:
Oldtimer said:
frenchie said:
Sad when it happens to you ain,t it. :wink:

frenchie- Maybe you should think again-- If you are a cattleman... Because its the Canadian cattleman getting the proverbial shaft....

Relax Oldtimer It was a joke

Frenchie, the Canadian lumber issue, cattle, corn and other issues show that NAFTA, which was supposed to model after the EU, is nothing more than a sales job. You can not mix apples and oranges. Have to make all the laws and rules the same to have "free" trade. We have it between our 50 states. We don't have it with Canada.
 

Manitoba_Rancher

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I sure dont agree with this duty they have slapped on US corn. We feed some corn but mostly barley. Its just the point I believe we should have free trade between the two countries and none of this duty garbage. We definately know now that our Prime Minister is a waste of fresh air!!
 

Bill

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Manitoba_Rancher said:
I sure dont agree with this duty they have slapped on US corn. We feed some corn but mostly barley. Its just the point I believe we should have free trade between the two countries and none of this duty garbage. We definately know now that our Prime Minister is a waste of fresh air!!
Just curious? How much corn would you feed in an average year and what is the cost of barley in your area right now?
 

frenchie

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Econ101 said:
frenchie said:
Oldtimer said:
frenchie- Maybe you should think again-- If you are a cattleman... Because its the Canadian cattleman getting the proverbial shaft....

Relax Oldtimer It was a joke

Frenchie, the Canadian lumber issue, cattle, corn and other issues show that NAFTA, which was supposed to model after the EU, is nothing more than a sales job. You can not mix apples and oranges. Have to make all the laws and rules the same to have "free" trade. We have it between our 50 states. We don't have it with Canada.


Canada does not have it with you either. As far as the corn duty I,m against it.
 

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