Other Priority Issues and Required Actions

Competitiveness

The top challenge facing the Canadian cattle industry today is that several factors are contributing to a lack of competitiveness in the cattle feeding and beef processing sectors. Left unchecked, greater numbers of cattle will be fed and slaughtered in the US and increasing quantities of beef will be imported into Canada. A high Canadian dollar exacerbates these problems necessitating swift action.

Required Actions
  • Promptly implement a plan to offset the cost of disposal of Specified Risk Materials (SRMs) as required by the enhanced feed ban. This would be a transitional measure until remedies are implemented to restore industry competitiveness. See coalition letter requesting a creation of an OTM Compensation Program .
  • Remove the prohibition on using SRM meat and bone meal as fertilizer as a way to restore value for the SRMs
  • Traceability should not impede commerce. Pilot projects currently underway testing scanning equipment in auction marts need to be completed prior to proceeding. Regulating additional costs to producers will put industry at greater disadvantage.
  • Implement 2008 Federal Election commitment to cut diesel excise tax from 4 cents to 2 cents per litre,
  • Ensure Canada’s approval process for products (veterinary/pharmaceutical, pesticides, biologics, new forage and grain varieties, etc) are as or more efficient than our international competitors such as the United States and Australia.
  • Ensure enforcement by regulators is commensurate with consequences of non-compliance (eg: fines for lost CCIA tags; high value meat removal around spinal cord).

Ability to Sell our Products for a Reasonable Return

International market access barriers and the economic recession are compounding the impact of the high cost of operating in Canada. Full restoration of access for beef products from cattle of all ages to top priority markets would easily add revenue of $100 per head. The US COOL issue is not necessarily impacting “beef” sales to the US, but is negatively affecting the price of selling livestock to the US. In addition to regaining lost ground on the trade front, we also encourage the Government to create new opportunities for beef exports by negotiating new trade agreements.

Required Actions
  • Ministers Ritz and Day should continue travelling to high priority trading partners to seek restoration of full beef access. Opposition MPs should support these efforts by matching participation enabling missions when Parliament is sitting.
  • Consider appointing a Special Beef Envoy to continue Ministerial travel during election campaigns or while Parliament is sitting.
  • Request establishment of a WTO panel with the United States to address COOL.
  • Continue our WTO challenge with South Korea.
  • Pursue ambitious bilateral trade agreement with the European Union to achieve full duty-free and quota-free access.
  • Seek an ambitious completion to the WTO Doha Round of trade negotiations.

Business Risk Management and Disaster Programming

If Government can achieve the actions listed above to raise cattle prices and reduce costs, then producers can make a fair living from the market. Until these actions are achieved, cattle producers need to know that BRM programs exist. Unfortunately, the existing national programs are not designed to accommodate the needs of cattle producers. Individual provinces have attempted to address the situation unilaterally, thereby exacerbating the problem by creating frictions between cattle producers in various regions of the country.

Required Actions
  • The Federal Government needs to lead a conscious and active effort to restore a national approach to BRM and Disaster Programming. Develop an effective and affordable national Federal-Provincial cattle price and basis insurance program,
  • Eliminate the viability test for Agri-Stability, increase negative margin coverage to 70%, eliminate caps and allow producers to calculate reference margins on last three years or on Olympic average.
  • With respect to Disaster Programming, clearly outline eligibility criteria for triggering Agri-Recovery and establish predetermined payments based per head and per acre for forage/pasture rejuvenation.

Environment

Cattle producers are long-time partners with the environment in the production of wholesome, nutritious beef. Years of experience have made cattle producers very knowledgeable in conserving and enhancing the environmental and economic sustainability of agriculture. Cattle producers care and many have voluntarily changed production practices to make their operations increasingly environmentally sustainable.

Required Actions
  • Government needs to more fully harness the potential environmental benefits of cattle production through the development of an environmental goods and services financial incentives system.
  • Ensure the cattle sector can participate in a domestic carbon offset system by developing practical, science based protocols.