For Immediate Release
January 17, 2008

SUPPORTING ONTARIO'S LIVESTOCK INDUSTRY

McGuinty Government Responds To Cattle Industry Needs

TORONTO - Ontario's cattle industry is receiving additional funding to help it adjust to changing market conditions and requirements.

The province is providing $14 million in transitional funding to abattoirs and deadstock collection services.

"We know that there have been ongoing challenges for Ontario's livestock industry since BSE was found in Canada," said Minister of Agriculture, Food and Rural Affairs Leona Dombrowsky. "The investments in the cattle industry will assist the sector as it continues to adjust to new federal regulations and a competitive global marketplace."

The province is encouraging the federal government to recognize the continued need for funding in Ontario and provide their share of funding to help abattoirs comply with the new regulations.

"Our membership appreciates the assistance of the McGuinty government," said Jim Clark, Executive Director of Cattle Feeders' Association. "These funds will help us as we take additional steps to strengthen Ontario's cattle industry."

"We are very pleased with the government's ongoing support of our industry," said Ian McKillop, President of the Ontario Cattlemen's Association. "All of these programs have been welcome news for an industry that is still struggling from the effects of BSE in Canada."

The funds announced today are part of $150 million announced in the 2007 Economic Outlook and Fiscal Review to strengthen competitiveness and help Ontario cattle, hog and horticulture farmers suffering from multiple financial pressures.

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Contacts:
Kelly Synnott
Minister's Office

(416) 326-6439 Brent Ross
Communications Branch
(416) 326-9342

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Backgrounder

SUPPORT FOR ONTARIO'S LIVESTOCK INDUSTRY

With farm gate sales of more than $940 million in 2006, Ontario's cattle industry is an important contributor to the province's economy. A number of conditions have led to Ontario's cattle producers experiencing steep losses recently, including:

The McGuinty government has provided more than $50 million to assist the cattle industry during these challenging times.

Transitional Assistance

Federal Feed Ban Implementation - $9 million

The McGuinty government is responding to the continuing needs of Ontario's cattle industry by providing $9 million to abattoirs that process cattle. This funding will assist with operational costs incurred as a result of implementing the federal enhanced feed ban regulations, while developing further efficiencies to reduce future costs.

In infected cattle, BSE concentrates in certain tissues, collectively known as specified risk material. These include skull, brain, trigeminal ganglia (nerves attached to the brain), eyes, tonsils, spinal cord, and dorsal root ganglia (nerves attached to the spinal cord) in cattle aged 30 months or older, and the distal ileum (part of the small intestine) of cattle of all ages.

The enhanced feed ban regulations, which came into effect in July 2007, require that specified risk material be kept separate from other inedible materials, and not go into any animal feed, pet food or fertilizer manufacturing. There is at least five times more specified risk material in cattle older than 30 months of age than younger cattle.

Abattoirs do not need to submit applications to receive funding from this program. All licensed abattoirs in Ontario that slaughtered cattle between July 1 and December 31, 2007, will receive funding. Funding will be based on the proportion of cattle slaughtered by each plant that were 30 months of age and over, and under 30 months of age, compared to the provincial total, using 2006 slaughter statistics.

Because there is a significantly greater volume of specified risk material to be removed and disposed of from older cattle, abattoirs will receive more funds for those animals.

Due to the urgent need for support, payments under this program will be made in one lump sum to each eligible abattoir before March 31, 2008.

Deadstock Disposal Assistance - $5 million

The McGuinty government is providing $5 million in interim funding to the Ontario Cattle Feeders' Association to support affordable deadstock collection and disposal.

A new legislative and regulatory framework is in development that will provide farmers with more on-farm deadstock disposal options that are practical, affordable and safe. It is expected that this framework will be in place by fall 2008.

Direct Payments for Producers - $40 million

As announced in December 2007, the Ontario government is providing approximately $40 million to cattle producers. This Ontario Cattle, Hog and Horticulture Payment will provide eligible producers with a payment based on their historical allowable net sales. Payments will be generated using the database from the federal Cost of Production Payment and the Ontario Cost Recognition Top-up program. To be eligible, producers must have at least half of their total commodity sales from cattle, hogs and/or horticulture.

For eligible cattle producers, the payment rate will be 12 per cent of their allowable net sales. The total payment cap per individual farmer under this program is $3 million. There is no application necessary to receive a payment.

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Contacts:
Kelly Synnott
Minister's Office
(416) 326-6439

Brent Ross
Communications Branch
(416) 326-9342