Beef Industry Issues Update

Two issues that are likely to have an impact on Ontario Beef Producers this coming year can be traced back to May 20, 2003. Since it's now 2007, you would think that fateful day when an Alberta cow was diagnosed with BSE would be fading from our memory. However, the impact that one cow had on the industry was swift and will be long lasting. Believe it or not, in terms of recovery from the BSE bomb, Canadian beef producers can be considered relatively fortunate. Canada regained access to export markets within 4 months of the initial closures. Historically, countries have not regained any exports for several years following the discovery of BSE. However, there is still more work to do.

Beef and Cattle Trade with the United States

The USDA recently posted "Rule 2" to their Federal register for a public comment period that begins January 9 and ends March 12, 2007. The proposed rule will allow for export of any live animals - breeding or for slaughter - born on or after March 1, 1999, from Canada to the United States, as well as beef products of any age. The non-pregnant requirement will be eliminated along with the movement restrictions on feeder cattle, so it will be considerably easier and less costly to export feeder and slaughter cattle to the US.

Following the 60 day comment period, the USDA will review the comments, write responses to them and potentially amend the rule. The rule must then be returned to the Office of Management and Budget for review. Once they release the rule the USDA will post it and set a date for it to come into effect. The earliest expected time the rule will come into effect if all goes well is sometime this summer. However, RCALF (Ranchers and Cattlemens Action Legal Fund) is not likely to let this change pass without a fight and the actual implementation date of the rule is anybody's guess.

RCALF has recently launched another legal battle against the first rule, asking the District Court to re-examine the evidence presented, arguing that the Ninth Circuit Court did not review all evidence when they overturned the injunction back in 2005. The battle to fully normalize trade between Canada and the U.S. is far from over.

Enhanced Feed Ban

The second issue has to deal with the feed ban in place to prevent the transmission of BSE within the cow herd. Ruminant meat and bone meal (MBM) has been banned from ruminant feed since 1997, however the potential exists for ruminants to receive feed with ruminant MBM due to feed being mixed for ruminants and non-ruminants in the same feed plant and in some cases being fed on the same farm. The Federal government is implementing an enhanced feed ban that prohibits specified risk material (SRM) from use in feed, fertilizer and pet food by July 12, 2007. In an infected animal, the SRM harbors the BSE prions (causative agents), so removal of SRM eliminates the potential threat of infectivity. SRM include: from cattle of all ages the distal ileum (portion of small intestine), from cattle 30 months of age and older, the skull, brain, eyes, tonsils, spinal cord, trigeminal and dorsal root ganglia. Removal of SRM will strengthen the feed ban by removing the chance of cross contamination and also speed up the process of eliminating BSE from our cow herd.

Feed manufacturers are indicating that to adhere to the enhanced feed ban they will no longer accept MBM with SRM after May 1, 2007. Under the new regulations a permit will be required to allow SRM to be collected, transported, received, contained, processed or used (i.e. renderers, dead stock collectors, incinerators). SRM must be controlled by permanent containment (i.e. landfill), rendered or composted with controlled end use or destroyed. Currently accepted methods for destruction include incineration, gasification followed by incineration, cement kiln, alkaline or thermal hydrolysis. In an effort to deal with the regulations by the implementation date the industry is currently looking at short term solutions to deal with SRM until more sustainable long term solutions are brought into line.

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