Cebull may ban boxed beef

[SASH]

Second U.S. injunction feared
this document web posted: Wednesday March 16, 2005 20050317p1

By Mary MacArthur
Camrose bureau

Battered Canadian cattle producers are beginning to worry that the beef industry may take yet another dramatic turn for the worse.

There is a growing sense that Montana judge Richard Cebull, who has granted every R-CALF suit so far to keep the American border closed to Canadian cattle, will soon place an injunction on Canadian boneless beef from animals younger than 30 months coming into the U.S.

"The industry is very concerned," said Bill Jamieson, of JGL Livestock in Moose Jaw, Sask.

The export of boneless beef from young animals has been the beef industry's only financial relief since the U.S. border closed to Canadian cattle and beef older than 30 months after the discovery of a domestic BSE case almost two years ago.

Push for testing

"Now it appears there is more than a small chance that they will get it shut off to boneless beef as well," said Jamieson, an order buyer. He and other producers and feedlot operators have started a petition to ask the federal government to test cattle older than 30 months.

"I believe we have no choice in this matter but to go to some sort of testing," said Jamieson, who feels Americans would have no choice but to reopen the border if the beef was proven safe with BSE testing.

Steve Kay, editor of Cattle Buyers Weekly, agreed with the assessment that the Montana judge could rule in R-CALF's favour for a complete border closure.

"He looks inclined at the moment to do a preliminary injunction against allowing boneless beef under 30 coming into the country," said Kay.

Dennis Laycraft, executive vice-president of the Canadian Cattlemen's Association, doesn't know how likely it is that U.S. beef markets will be cut off.

The desire to stop boxed beef from animals younger than 30 months was in the original R-CALF injunction and the judge didn't add it to the list of products not allowed to cross the border, said Laycraft.

"He has left boxed beef alone so far," said Laycraft. "It's a little hard to say how great the risk is.

"Knowing you're dealing with a single individual in Montana, you don't take anything for granted."

The Canadian cattle industry is developing contingency plans to get a realistic figure on volumes of Canadian beef that could move into alternative markets if the U.S. border closed to boneless beef as well. Last year Canada exported 400,000 tonnes of beef to the United States.

Elizabeth Whiting, press secretary for federal agriculture minister Andy Mitchell, said there is no confirmation R-CALF intends to push ahead with its demands to close the border to Canadian boxed beef.

At this point it's just "assumptions and rumours," said Whiting.

Laycraft said the CCA is taking a second look at the possibility of BSE testing if it would help open markets for Canadian cattle. So far only Russia and Japan have indicated a desire for BSE testing. Japan is in the process of changing its rules to require testing only for cattle older than 21 months.

"We're looking at all options," said Laycraft, who added that until now, Canada's problem wasn't a lack of testing, but enough slaughter capacity.

"If we find that we're unable to move the UTM (under 30 months) beef, we have to look at every option."

Betty Green, past-president of the Manitoba Cattle Producers Association, said her organization has long advocated BSE testing if that's what it takes to open export markets.

"Now with the possibility of R-CALF going after boxed beef, that's all the more important," said Green. "We have to get back into the world market.

"This has gone on far too long. It's horribly frustrating for producers who a month or two ago just thought they had to hang on another couple of months and things would get better."

Robert Meijer, director of public affairs with Cargill, said the closing of the American market would be a huge blow to Canadian producers and to the Cargill packing plant in High River.

"If High River and the other packers lose that opportunity, our industry is in big trouble. Our ability for slaughter would be severely reduced. In effect, we wouldn't have much of any market," said Meijer.

"We can't lose what we've already gained

[smcgrath76]

Is it just me or do others get somewhat annoyed when discussion is about "we're OK as long as we can move product"? What about marketing our product to/for customers to try to get the most value out of it that we can? Even in a commodity business you need to seek out markets, not just "move product".

I appreciate that CCA's comments may be just a use of terminology, but it is really starting to bug me. As a producer I do not want to "move" product. I want to produce a desired product and get paid for it.

[15444]

Agree with you a 100% Sean.

When Laycraft says 'It's a little hard to say how great the risk is.', he might as well be running up and down the streets screaming 'We're screwed, we're screwed, CCA has no long-term plans!'

If he honestly has no idea the impact or threat a ban on UTM boneless beef would have on our industry, then I can actually say I HAVE met cows with more brains then a human.

[kpb]

Laycraft knows full well that a ban on boxed beef would decimate our industry but he's afraid to say so. He knows that turning the Canadian cattle industry into a hobby farm operation, which is what a ban on exporting beef would do, would cost him his job and would also be the end of the CCA as a producer group. Remember when boxed beef was banned right after the first BSE case? Remember fats at .30?
I think there is a really good chance that boxed beef will be included if a permanent injunction is granted--after all what is the rationale in banning live cattle under 30 months and not boxed beef? To be consistent they both should either be allowed or banned.


kpb

[rkaiser]

Rather than considering the option of BSE testing, we better damn well be working on it right now. If we don't need it great, but this is our last card to play. Use the damn thing. Discuss the method we will use, and get the CFIA off their ass. One and only one contingency plan should these American idiots choose to stop boxed beef. BSE testing.

[kato]

I believe stopping boxed beef is the ultimate goal for this bunch. We haven't seen the end of lawsuits and harrassment over this border. It's going to go on and on as long as they can keep the lawyers paid up. Year in and year out. Forever ....

So what do we do? Do we toe the line, and do what we are told? Roll over and die? Or do we stand up for ourselves?

We need to get the message across to those south of the border that we WILL do what it takes to ensure our survival, no matter what their opinion is.

I know there is a lot of debate over whether or not testing is the 'scientific' way to handle this situation, but science left the building a long time ago, and now it's a matter of doing what you have to do in order to survive.

[Bez]

Well, you guys lined up - pro and con - on the issues of supply and demand vs supply management. Not a lot of action here.

Kaiser once again and true to form has hit the nail on the head.

Test! One and one only contingency plan.

Mark my words - if the boxed beef blockage plan comes through - even those who sit comfortably on paid for land and paid for cows and paid for machinery will be falling by the wayside.

.30 cent fats? Hell, can you say .05 - .10 cent fats?

Well, that is where they will go and do not laugh at me for those numbers.

The industry will simply disappear.

Time for some serious action - best get off your hands and beat those guys to the south by approving 100% test and grabbing the Pacific and European markets tomorrow.

Waiting for this to happen first? It will be too late. The way the feds "Dither" it will take 6 months to a year for approval to test.

Bez

[15444]

'Even those who sit comfortably on paid for land and paid for cows and paid for machinery will be falling by the wayside.'...Current example Bez, and the will to carry on is a day by day process. The government will dither, and so will the CCA with comments of the sort coming from Laycraft. Laycraft is a good example of the wait and see crowd, which is common in the positions of power, both industry and government, in this country.

If the USDA appeal is successful and the border opens even for 4 months, be prepared to see the largest mass movement of cattle we have seen in years, if ever, over such a short period of time. The American packing companies will send liner after liner up this way. My whole herd won't go, but I'll be dumping anything under 30 months and the cull cows. I suspect many others across the country will too..if they don't get rid of the whole herd at the same time.

People don't have the money or the patience to hold cattle back anymore while the government or industry makes up their minds on what to do next. They had almost 2 years to do that.

[Bez]

15444

If the border opens for 4 months - I am taking any price and sending everything that will sell.

Have already decided to keep 5 animals for the family and rent the land out.

More money in me working off farm and less stress worrying about how to make the various payments.

I would like to be able to actually take a vacation once every 5 years rather than once every 10! LOL

I figure the CCA is a lost cause and the rest of them who adopt the wait and see attitude are - in my mind - enjoying the cozy good life - looking for patronage jobs somewhere.

Just bitter tonight I guess.

Bez

[15444]

Bez, if prices were decent, we could immediately send to market:

8 cows, ave 1300 lbs
1 or 2 mature bulls, ave 2000 lbs
7 open fall 2003 heifers, ave 700 lbs
4 spring 2004 heifer calves, ave 600 lbs
10 fall 2004 steer calves, ave 380 lbs
6 fall 2004 heifer calves, ave 350 lbs

So 37 head total of an 80 head herd, with more that could go once this spring's calves are taken off in the fall.

Any American takers? Certified cheque and you can have the UTM one's when the border opens to live UTM cattle?

[magpie]

I think back when BSE appeared in may of 2003. All the dialogue of testing for and not here on this forum. Seems we have all come full circle now and if they close the border to boxed beef that will be our last card to play, either in or out. If their had been some leadership by our gov’t and cattle organizations to test, such as other countries have done, this Montana judge and rcalf would have no grounds to impose injunctions.

[kato]

This is exactly why we've got to get aggressive right now.

Open, closed, open, closed. That's nuts!

You can't run a business like that. If it opens with a probable closing date set in August, it's not going to be pretty. There will be mass dumping on the market, and the price will be so bad that it may as well be closed. Unless of course Americans are up here buying everything they can while they can! And they'll get them over the border as fast as they can.

Funny, once you think of it, the potential ruling by Cebull in July just could spark the very flood of Canadian cattle that R-Calf predicted. I bet they didn't figure that THEY would be the reason it will happen.

How ironic is that?

We all know he's going to close it again as soon as he can, and then it'll have to be appealed ... again. It'll go all the way to the Supreme Court. We all know how fast that sort of thing happens!

In the meanwhile, we all go broke, half the American packers shut their doors, and if those knotheads down south think they're suffering under 'captive supply' now, they haven't seen anything yet.

How does R-Calf think that they are going to be farther ahead if they lose the competition for their cattle? I guess because there are no packers in Montana, it doesn't matter, eh?

[15444]

All we can hope for is that the border opens, US packers and every single feedlot down in the US fills their lots enough to hold on and drive down the fall price on the R-CALF cattle, even after the border closes in August. It would be sweet justice, even if just for one year.

[cowman]

I believe I said test them all about two weeks after the border closed in 2003...but whatever?
I do believe many countries around the world are watching right now how Canada is being treated by the US. Mexico has just recently come out and blasted the US for not playing by the rules and stating very clearly that they will treat US meat exactly how the US treats Canadian meat! Japan has basically said the same thing?
I wonder if the average American ever gets it? That you can't treat your neighbors like garbage and still expect anyone to trust you? Why did America ever sign a free trade deal if they never had any intention of living up to it? I hope the South Americans are watching how the US honors their committments?
It is so sad to see these narrow focussed interest groups try to railroad the greatest trading pact in the world...for a few measly dollars! In the end they are only shafting themselves and they are too dumb to even realize that?
Go ahead and lie and tell the consumer the food system isn't safe and beef is "instant death"! Join up with PETA and Earth First and tell the American consumer the American inspection Agencies are corrupt and not doing their job...keep it up and soon you will ruin our industry. Like I said these guys definitely aren't the sharpest knife in the drawer!
Why is our useless government doing so little? Why is it up to guys like Rick Paskal and Cor van Ray, to fight for our rights under the NAFTA? Trade is a government responsibility and they can't even mount a challenge under NAFTA? What are we paying them for? Why even have a ministry of trade?
I thought NAFTA was supposed to be a NORTH AMERICAN FREE TRADE deal not an AMERICAN FREE TRADE deal? How come America makes all the rules and Canada and Mexico have to abide by them? Maybe the time has come for Canada and Mexico to stand up and kick the US out of NAFTA? Let them go deal with their friends...oh I forgot they have no friends other than the dictators they've bought?

[kato]

In trading with America, the basic rule is that if it's all in their favour, it's a good deal.

If their trading partner is prospering, they MUST be cheating, and something needs to be done about it.

I too am absoulutely amazed at the stupidity going on down there. The best cattle prices in history, and for a couple of cents a pound more, they are willing to risk ruining the industry. It boggles the mind!

It also makes you wonder how much money is enough? Obviously there's no such thing. If this is the grief we get during record high prices, imagine the flack we would be getting if prices were poor down there right now?