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    U.S. Border to Open Monday

    http://www.cbc.ca/canada/story/2007/11/18/border-madcow.html

    After more than four years of restricted trade following a mad-cow disease scare and an estimated loss of more than $1.7 billion, Canadian producers are looking forward to Monday's reopening of the U.S. border to older, live Canadian cattle and their meat products.

    The move comes after the U.S. Department of Agriculture ruled that the risk of bovine spongiform encephalopathy (BSE) in Canadian cattle is "negligible."

    "The border opening is going to be tremendous for all purebred breeders and all breeds because the U.S. has been a fairly substantial marketplace for us," said Helge By, of By Livestock, who co-manages the Regina Bull Sale.

    "Historically, before May of '03 when it closed, we would be selling 10 to 15 per cent of the bulls out of that sale to the U.S. every year. Of course, we've lost that market until now."

    The border slammed shut when BSE was first found in an Alberta cow in May 2003, costing Canadian producers about $426 million a year.

    Canadian cows under 30 months of age, deemed to be at less risk for BSE, have been allowed into the U.S. since July 2005. But older Canadian cattle and beef cuts from those animals had remained barred.

    The trade rule to be implemented Monday allows the import of meat from all older animals and any live cattle born after March 1999 when a feed ban aimed at stopping the spread of BSE came into effect in Canada.

    Brad Wildeman, vice-president of the Canadian Cattlemen's Association, was taking a "cautiously optimistic" approach to the border reopening.

    "It's going to take some time, I think, before the market channels get reopened," said Wildeman, who is also president of the Pound-Maker Feedlot in Lanigan, Sask., which has a capacity of 28,500 head.

    "There's more regulations to get them down there and so there's going to be a little more work to them into those markets. We're not expecting a flood of cattle heading down there because of this."

    The big winners, he said, will be breeders, the genetics industry and those who ship meat to the U.S.

    "They've been locked out of both [the U.S. and Mexico], which were their No. 1 and 2 markets previously, and it's going to open these markets back up for them," said Wildeman.

    By agreed, saying Mexico is anxious to get Canadian genetics back.

    "We've been handcuffed not being able to ship cattle down there," By said.

    "Since the announcement in September of the border opening, there has been a lot interest from Mexican delegations, not only in the beef industry but in the dairy industry," he said.


    U.S. beef group supports trade resumption

    In the U.S., the National Cattlemen's Beef Association — the counterpart to the Canadian Cattlemen's Association — has supported resuming trade.

    But the rules and reopening don't please everyone.

    "I don't feel that Canada has their feed ban in place yet the way that it should be," said Allen Lund, a long-time rancher in Selfridge, N.D. "The last-BSE positive cow to surface in Canada was born in 2003. Had the feed ban been in place, this shouldn't have happened."

    Lund is also a member of R-CALF USA, the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America, which is seeking an injunction to prevent the U.S. Department of Agriculture from moving forward with the over-30-months rule.

    The group argues that resuming trade increases the risk of infecting U.S. cattle.

    "I don't think we're on the same playing field as far as BSE risk goes," said Lund. "I've seen it documented where Canada is 26 more times likely to have a cow test positive for BSE than the United States is."

    Canada has had 10 mad cow cases

    There have been 10 mad cow cases recorded in Canada and three in the U.S.

    Lund said U.S. producers have just regained some of the foreign markets that had shut their doors and they fear what might happen if a case is imported from Canada into the U.S.

    He's also concerned that the border reopening comes at the peak marketing time for U.S. cull cattle.

    "We sold ours this week and normally we would have held onto them, put a little weight onto them," said Lund. "But we kind of got spooked at what's going to happen with this older cattle coming in from Canada, if it's going to put a glut on the market."

    © The Canadian Press, 2007

    #2
    We are completely out of dealing with the Americans now - so for me it is nothing more than a big yawn.

    I plan to never deal with them - not because I have a dislike - far from it - but I am tired of a single client business base.

    This will simply put us closer to where we were before because is is too easy to look south. Sooner or later we will regret this move - if only because it will slow down our resolve to open alternative sources for our beef.

    It is my opinion this border opening is going to be a bad thing in the long run.

    Bez

    Comment


      #3
      Alternative markets for our beef...The fact remains that the U.S. is our market for live cattle and that is what I sell ant that is how I pay my bills. The price of our live cattle is set in the United States minus a basis. When the U.S. was blocking our live cattle that basis was whatever Tyson and Cargill wanted it to be.

      See:
      http://www.inspection.gc.ca/english/anima/heasan/export/americ/queste.shtml

      The export requirements are not too bad and animals under four or five years of age should travel south without too much problem. No brands are required if the animal is destined for immediate slaughter. Pregnancy tests are no longer required and steers and heifers can be mixed in the same load.

      Q9 How do you confirm the age of an animal for export?
      A9 This can be done in one of three ways:
      birth records agreeable to the accredited veterinarian can be used for animals of any age;
      an examination of dentition which confirms the full eruption of the 8th permanent incisor (this examination can determine whether an animal is approximately four to five years of age);
      a visual inspection is allowed for younger animals (up to 3 years of age) under certain conditions

      Comment


        #4
        What are you going to do next farmer-son ----post the American National Anthem?

        Keep singing Uncle Sam's song and there will be nothing left of this industry in a very short time.

        Comment


          #5
          Quote - The fact remains that the U.S. is our market for live cattle and that is what I sell ant that is how I pay my bills. The price of our live cattle is set in the United States minus a basis. When the U.S. was blocking our live cattle that basis was whatever Tyson and Cargill wanted it to be. - End Quote

          Seems to me you need some diversification - or you are doomed to stay with the status quo.

          I do not see the basis - which it seems you figure is controlled by Tyson and Cargill - changing dramatically.

          Selling into a dropping dollar may prove to be interesting as well.

          Bez

          Comment


            #6
            The reopening of the U.S. border affected more than just live cattle. For those more interested in finding markets for our beef, we can now ship OTM beef into the U.S. with the expectation that more overseas markets for all Canadian beef will reopen as well.

            Last week good cows in Wyoming were 44.25-46.75. Locally good cows were 28-35. That tells me that an Alberta cow was bringing about $130 possibly $200 less than the same cow would have brought if sold in Wyoming. As of today we can ship that cow direct to slaughter to the U.S. and it does not cost $130 or $200 to do it. Our cow prices should increase and that has to be good thing. Our producers need that.

            Prior to BSE and May 2003 the majority of Canada's cull cows were shipped to the U.S.

            Yes we do need diversification and a Canadian cattle industry dependent upon live cattle trade across an international border to provide competition in the marketplace is always going to be vulnerable to border closures. Still November 19 will be a milestone day and it was a long time in coming.

            Comment

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