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Posted by Daniel Workman Nov 19, 2007 |
In the province of Ontario, beef is a C$1.2 billion industry. More than 19,000 producers work in Ontario's beef industry. Another 13,000 people directly or indirectly owe their jobs to Ontario beef.
According to Ian Urquhart of the Toronto Star (Beef sector burned by hot loonie, November 14/07), Canadian beef farmers face 4 major obstacles.
- The soaring loonie makes Canadian beef exports more expensive and imported American meat cheaper.
- Canadian beef producers are at a competitive disadvantage because of stingent new Canadian federal regulations. These were the result of the outbreak of mad cow disease in Alberta in 2003.
- Strong preference for bio-fuels as a green alternative to gasoline has driven up the price of grains and oilseeds, used as cattle feed.
- Meat processors like the Better Beef plant in Guelph have downsized and cut its daily production by 20%.
Beef farmers are now losing more than C$400 per head of cattle. That amounts to a loss of about $100 million in just 6 months.
Given the pain felt by Canadian beef farmers, government subsidies may be the only way to stem the losses.
The World Trade Organization frowns on government meddling. But this is a genuine emergency.