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Cattle industry optimistic
Angus Henderson of foreign iron ore and steel on infrastructure
ahenderson@medicinehatnews.com projects funded by the close to a trillion
dollars stimulus package recently approved
It’s been a difficult few years for the Canadian
by the U.S.
cattle industry since the first Canadian case As a result, there had also been concerns that
of mad cow disease was discovered back in such protectionism might also be applied to
2003. other trade areas such as the Canadian cattle
Since then the industry has undergone
industry.
a succession of competitive challenges Introduction of mandatory Country of Origin
including border closures, a volatile dollar, Labeling (COOL) began last September after
enhanced regulations, and significant market years of discussion, controversy, modification
uncertainty. and delay.
In addition, the industry has also wrestled The central notion of COOL is to provide
with a reduced demand for beef across North consumers with information about the source
America. of beef products. Opponents of COOL, most
More recently the Canadian industry has had
notably Canada and Mexico, have viewed
to cope with U.S. insistence on Country of
it as an attempt to construct a trade barrier
The labeling law applies to packages of beef, NEWS FILE PHOTO
Origin Labeling (COOL) and a protectionist
against imported cattle and beef.
chicken, lamb, pork and goat meat sold in
In recent years, the Canadian
mood in the U.S. because of the economic MacLean said he was pleased that modified
grocery stores as well as nuts, seafood and cattle industry has been through
downturn. regulations have been instituted in a business-
fruits and vegetables.
some pretty rough times. From
Local Porter & MacLean Livestock
like manner.
the 2003 discovery of the first
MacLean said the recent economic downturn
Canadian case of mad cow
Management Inc. spokesperson James “It now allows Canadian cattle — whether
could also spell good news for the Canadian disease to border closures and
MacLean, however, thinks there are enough fed in the U.S. or delivered from Canadian
cattle industry.
enhanced regulations, Canadian
big issues for American politicians to deal feedlots — to be slaughtered on the same
ranchers are looking for some
“The Canadian dollar is always our biggest
with right now, so that the Canadian cattle day,” he explained. “It also allows the cattle to
good news, which may come
threat or our biggest ally,” he explained. “As it from the current downturn in
industry won’t be at the top of the trade have the same label.”
increases in value our profit margins shrink,
the economy.
agenda.
A final set of U.S. rules for country of origin
and as it goes lower to 80 cents (U.S.) it
“I think cooler heads may prevail there labeling is now due to take effect in mid-
definitely helps our cause.”
because you simply can’t work your way out March.
MacLean also pointed out that feed grain
of a problem with zero trade,” he explained
Canada shelved a World Trade Organization
costs are dramatically better now than they
recently.
(WTO) complaint last month in the belief
were a few months ago, and that’s helped
The U.S. change of heart came about following that U.S. rules would give packers more
Canadian cattlemen as well.
a strong reaction from Canada and other U.S. flexibility in handling livestock. It, along with
“As a result, there’s a little more optimism in
trading partners about a possible trade war Mexico, had charged that the U.S. labeling
the cattle industry that there was a few months
if the U.S. had persisted in its protectionist law was a trade barrier that depressed prices
ago, but it’s still tempered,” he added.
stance. for Canadian livestock.
The primary objection was to a provision Some 1.6 million head of cattle were shipped
that would, in part, have prohibited the use to the U.S. in 2008.
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