Enhanced feed ban implemented
The Canadian Food Inspection Agency’s
(CFIA) new animal feed regulations
came into effect on July 12, 2007. The new rules prohibit specified
risk
materials (SRMs) as an ingredient or input in animal feed, pet food or
fertilizer. This means strict new handling and disposal requirements
for these
waste materials adding a significant cost to the Canadian industry, not
incurred by U.S. facilities.
For several months the CCA has been
cautioning the federal government that
the enhanced feed ban would trigger restructuring in the Canadian beef
processing sector without adequate transitional funding. Some
federal/provincial transition fund agreements have been announced, but
lengthy
delays in establishing these agreements have prevented the industry
from
readying itself in an efficient manner. Furthermore, there have been
unforeseen
costs that the transition programs were not designed to address.
Unfortunately
the current situation is that some processors have decided that the
best way to
comply with the new rule is to simply stop processing certain cattle.
Since the
new regulations were implemented on July 12, nearly 600 jobs have been
eliminated at two major beef processors. Some smaller facilities have
announced
that they will no longer process cattle that are over 30 months of age.
The CCA is working harder than ever to
stress to the federal government
that without an immediate acknowledgement of this problem and a
commitment to
adequately support the industry in this period of transition, the
Canadian beef
processing industry will continue to undergo a major structural change.
In
April, the CCA requested that the federal government create a
transition fund
of up to $25 million per year for two years to meet the short-term
operating
costs that will be incurred until the proper infrastructure is in
place. To
date, this request has not been accepted.
R-CALF Litigation Continues
On
July 13, in Portland,
Oregon, the U.S. Appeals Court heard oral arguments from the
Ranchers-Cattlemen
Legal Action Fund (R-CALF) on restricting Canadian beef
imports—specifically
under-30-month (UTM) cattle and beef.
R-CALF
is looking to overturn
the April 2006 decision of Judge Richard Cebull of the United States
District
Court in Montana to uphold the United States Department of
Agriculture’s (USDA)
rule to open the U.S. border to UTM cattle and beef. In June 2006,
R-CALF
appealed to Judge Cebull’s District Court ruling to the Ninth Circuit
Court of
Appeals. Although the USDA filed a motion for “summary affirmance” with
the
Ninth Circuit Court, outlining that the Ninth Circuit had already
heard,
considered and rejected all of R-CALF’s arguments, the court decided in
November 2006 that R-CALF would be allowed to make its arguments
regarding
“Rule 1”.
The
CCA and its affiliates,
along with the Government of Canada, the American Meat Institute and
others,
filed an Amicus Brief in support of the USDA’s
science-based
approach to trade and its rule to allow UTM cattle and beef to be
exported to
the United States.
According
to the international
standards of the World Organisation for Animal Health (OIE), there is
no
justifiable reason why the U.S. border should be closed to Canadian
cattle and
beef of any age. Both Canada and the United States were awarded the
designation
of a controlled risk country for BSE based on the multi-layered
safeguards in
place to control BSE and ensure potentially infective material does not
enter
the human food supply.
John
Masswohl, director of
government and international relations for the CCA, was present in
Court
representing Canadian cattle producers. The Court did not make a ruling
at that
time and it may be a few months before it does. We hope it accepts the
decision
of the United States District Court and put an end to this litigation.
COOL update
Country
of origin labeling
(COOL) for beef continues to be debated by the House Agriculture
Committee.
COOL was included in the 2002 U.S. Farm Bill and requires that all beef
sold at
retail in the United States be labeled as to the country of its origin.
As it
is currently written, only beef from cattle “born, raised and
processed” in the
United States could be labeled as a “Product of USA”.
Three
categories of labeling
are being discussed: one that indicates the product was born, raised
and
slaughtered in the United States; one that indicates the product was
not
exclusively born, raised and slaughtered in the United States; and one
that
includes products entirely derived from foreign countries. Ground meat
product
may be labeled with a list of countries where the product may have
originated.
There are still ongoing discussions as to what the specific
requirements will
be. Everyone involved in the beef industry will be impacted by COOL and
verifiable record keeping audit trails and labeling requirements will
result in
added costs.
The
CCA does not disagree with
the concept of COOL, however, our legal analysis indicates that both
the North
American Free Trade Agreement (NAFTA) and World Trade Organization
(WTO)
clearly establish that the origin of meat is the country in which the
animal
was slaughtered. In other words, these trade agreements establish that
if
Canadian cattle are slaughtered in the United States, the beef is then
of U.S.
origin. Therefore, the U.S. law requiring cattle and hogs to be born,
raised
and slaughtered in the United States in order for the meat to be
labeled as
“U.S.” is a violation of the trade agreements.
In
addition, poultry is exempt
from COOL and this will create a competitive disadvantage for beef and
pork.
The CCA is working with the Canadian Pork Council to request the
Canadian
government be prepared to challenge laws that are non-compliant under
NAFTA and
the WTO.
Environmental impacts of the
beef industry
A
study assessing the effect
of the Japanese beef cow-calf system on global warming, water
acidification and
energy consumption was completed by Akifumi Ogino of the National
Institute of
Livestock and Grassland Science in Tsukuba, Japan. The study looked at
calf
production, animal management and the effects of producing and
transporting
feed. By combining this information with data from their earlier
studies on the
impact of beef fattening systems, the researchers were able to
calculate the
total environmental load of a portion of beef.
The
study indicates that a
kilogram of beef is responsible for the equivalent amount of CO2 emitted by the average European car
every 250 kilometers. Most of the greenhouse gas (GHG) emissions are in
the
form of methane gas released from the cattle’s digestive systems.
Canadian
cattle producers work
hard to ensure environmental sustainability and understand that GHG
emissions
are losses of valuable inputs to cattle production and represent
inefficiencies
in production and are working to reduce emissions as much as possible.
Methane
emissions from cattle are largely a factor of feed quality and
digestibility.
As feed quality increases, methane emissions per pound of meat produced
decreases. The quality of feed and pastures which Canadian cattle are
provided
far exceeds that of most countries.
With
the level of care
Canadian producers practice for the environment and for their cattle
herd,
methane emissions in the beef industry account for only 0.05 per cent
of global
GHG emissions. (National Inventory Report, 1990-2004 - Greenhouse Gas
Sources
and Sinks in Canada, Environment Canada)
Specifically,
when GHG
emissions are measured according to the Kyoto rules, Canada contributes
only
two per cent of all global GHG emissions. Of this two per cent,
agriculture as
a whole contributes only 7.3 per cent of total GHG emissions.
Through
research and
technology, Canadian cattle producers are leaders in the environmental
management of the land and in management practices to reduce the level
of
methane that is produced.
CCA Executive Vice President
in attendance for WTO negotiations
CCA Executive Vice President, Dennis
Laycraft, attended the WTO agriculture
negotiations in Geneva recently to ensure the interests of Canada’s
beef producers
were represented. These negotiations represent an important opportunity
for
Canada to address issues such as high tariffs and global subsidies that
distort
cattle production and prices. The troubled round of negotiations was
pushed to
the brink of collapse after a crucial meeting between the leading
players last
month, explaining the importance of having an industry representative
in
attendance.
“Celebrating 75 Years - Looking Back
and Stepping Forward”
Celebrating
75 years in the
beef industry, this year’s CCA convention and semi-annual meeting will
be held
in Halifax, Nova Scotia from August 13 - 17. Featuring speakers from
around the
world, this year’s convention will focus on how Canada can continue to
build a
sustainable foundation to maintain its position as a leader in animal
production and health and beef safety. Come out and meeting producers
from
across the country as well as industry affiliates and learn about
important
issues affecting the Canadian beef industry, while enjoying the
picturesque
countryside Nova Scotia has to offer.
In
addition to the President’s
Reception, annual golf tournament and barbeque evening, the 2007
convention
program features Dr. Jill Hobbs from the University of Saskatchewan and
her
discussion on a recently completed study exploring the feasibility and
implications of extending the current cattle identification system to a
full
chain traceability system from farm to retail.
Allan
Bloxsom from Meat and
Livestock Australia will be highlighting the Australian cattle industry
and its
“whole of chain” approach to the production of safe and wholesome beef.
As
well, Dean Baglole from Atlantic Beef Products will discuss the
benefits of a
value chain alliance and building strategic partnerships with cattle
producers
and retail and foodservice customers.
