Question on border

[topper]

I see on Reuters they are saying that as of monday the US border will be opening to more Canadian beef. They mentioned hamburger and bone in cuts from animals less than thirty months. I was just wondering if any of you had any opinions on this proposed move by the USDA? Will it make any difference to the amount of beef that is moving across the border?

[kato]

It'll make a difference for Cargil. Us? Who knows?

[grassmarketeer]

I'd missed that news. That would be great if it happens! Its got to help as it's one step closer!

[rsomer]

Topper: I have been through Reuters' site and no mention of your story. Also no mention on the USDA site or the CCA site or any of the search engines. Could you provide a link to your source?
I know Mexico is importing more beef from the U.S., could that be what you are referring to?

[blackjack]

OTTAWA, April 16 (Reuters) - The United States has decided to allow imports of ground beef and beef on the bone from Canadian cattle aged 30 months or younger, effective Monday, Canadian officials said on Friday.

"This is to test the U.S. industry's reaction," said one Canadian official who requested anonymity, adding intense work was done on this trade file to project an image of smoother relations between the world's two largest trading partners.

Canadian Prime Minister Paul Martin meets with U.S. President George W. Bush in Washington on April 30 in pursuit of more "sophisticated" relations with the United States after his predecessor chose not to send troops to Iraq.

But a U.S. Department of Agriculture spokeswoman said she had no information on imminent changes to beef imports currently banned because of Canada's mad cow crisis.

"I have no knowledge of anything being announced," USDA spokeswoman Alisa Harrison said, adding, "We're not at that stage with the Canadian rule."

Harrison was referring to a proposed USDA regulation that would allow live Canadian cattle under 30 months of age, as well as more beef products, into the United States.

A U.S. industry official, who asked not to be identified, said the USDA was likely to announce early next week that more Canadian beef would be allowed into the United States.

But the industry official said, "There's still conflicting reports on what products: whether totally open for all products or a phase-in."

Last summer, USDA eased its total ban on Canadian beef by allowing muscle cuts from animals under 30 months. Those cattle are thought to be at the lowest risk for carrying the disease.

"As of Monday, we will be able to export bone-in beef and hamburger, as well as a few other products. They have also relaxed the requirements on dedicated lines in Canadian slaughterhouses with respect to slaughtering beef younger and older than 30 months," said Jacqueline LaRocque, spokeswoman to Canadian Trade Minister Jim Peterson.

The move was hailed in Ottawa as another incremental step toward fully opening the Canada-U.S. border.

"This action recognizes the strength of the public health measures that both countries have implemented since the discovery of BSE (bovine spongiform encephalopathy) in North America," said Carla Ventin, spokeswoman for Canadian Agriculture Minister Bob Speller.

There have been no indications, however, the USDA is poised to allow live cattle from Canada into the United States, according to U.S. industry sources.

Canadian beef and cattle were banned by the United States, and other countries, after the discovery of one case of mad cow disease last May in Alberta, Canada's main beef-producing province.

The discovery of a home-grown case of bovine spongiform encephalopathy, or mad cow disease, has battered the export oriented Canadian industry, with the federal government pledging C$1 billion ($750 million) in farm aid last month.

[topper]

I'm kind of thinking along the same lines as Kato. I think this will only help the packers however it may be a small crack in the wall.

[kato]

I also think their plan is to open it very quietly and try not to affect prices in the States. If the beef goes in without costing producers down there any money, then the political agenda will be protected.

After all, this we are told this is totally science based, but we know better.

[kato]

Let's just see if this litle crack causes the price hike that it should in packer offerings next week. One of the biggest concerns I've heard about the price difference between fats in the USA and Canada has been the bone in cuts. Still 23% difference in the two dollars but fats at a similar dollar price!

How long can they keep protecting Cargil and Tyson and the monopoly based pricing while leaving Swift and others who will drive competition out to dry?

[topper]

I see APHIS has a list of the cuts that will be allowed to cross the border posted on their website. http://www.aphis.usda.gov/lpa/issues/bse/bse_can.html

[topper]

I was just looking through the list of Low Risk Canadian Products listed on the APHIS site and I found it interesting that they have no 30 month limit on the Bovine list. Also found it interesting that they are still not letting bone in sheep or goat meat through, I wonder why that is.

[rsomer]

While it is encouraging that the U.S. is allowing in this extra product from animals under 30 months of age the ultimate goal for Canadian producers is opening the border to live cattle.

Many have put forth arguments that the U.S. needs to treat Canada like the U.S. wishes to be treated by the rest of the world. I am not sure that the U.S. cares if the rest of the world imports their live cattle. Therefore based on that argument it is not a given that the U.S. will open the border to any Canadian live cattle in the near future.

The International Review Panel did chastise the U.S. for their irrational trade restrictions on the Canadian beef industry but I don’t recall if they specified that trade resume in live cattle.

I hope the partial measure announced here is not all we get. While I am still optimistic that we will see the border open to live cattle in the next month, I don’t get all that much extra comfort from this announcement. If anyone saved a copy of the International Review Committee’s Report on the Washington Holstein or has a link I would appreciate seeing it. I am unable to find this report on the Internet anymore.

[amazed]

rsomer,

Try this:

http://www.aphis.usda.gov/lpa/issues/bse/US_BSE_Report.pdf

[rsomer]

Thank for posting this.

[Horse]

I think all this did was to export more jobs as now they can take the bone out there and probaly call it us beef once they put a knife to it.