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notyoueither
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of naught
Aug 2001 time: 22:20
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http://www.canada.com/national/stor...00-5c0430fdcc21
quote: Cdn. mad cow crisis forces U.S. layoffs
Leah Janzen
CanWest News Service
Sunday, May 08, 2005
WINNIPEG -- Canada's mad cow crisis -- once viewed as a financial windfall for the American beef industry -- is now forcing layoffs and the "imminent economic collapse" of some slaughterhouses in the United States.
Losses to American beef producers and that country's packing industry as a result of the continued border closure to live Canadian cattle are expected to reach over $490 million this year alone.
And some experts predict the Canadian beef industry actually stands to come out ahead of the U.S. system, if Canada continues to ramp up its own processing facilities and court other foreign markets.
The Canadian industry has lost an estimated $7 billion since international borders slammed shut to Canadian cattle two years ago when a cow in Alberta was discovered with the wasting disease known as mad cow, or bovine spongiform encephalopathy (BSE).
American producers reaped the benefits almost immediately. Cattle prices soared south of the border and ranchers had no competition when it came to finding slaughterhouses to process their beef.
But the tables appear to be turning.
In an affidavit attached to a recent American Meat Institute court motion to reopen the U.S. border to Canadian cattle, Thomas Rosen, president of the Rosen Meat Group, said the lack of Canadian animals to process will mean the end of some slaughterhouses in the U.S.
"They will likely have to reduce and suspend operations at many plants and possibly even close certain facilities permanently," wrote Rosen.
Three U.S. slaughter facilities have already closed their doors. Many others have reduced staff, shortened work weeks or eliminated overtime to stay afloat.
Rosen Meat Group is one of the biggest meat packers in the United States, with four plants capable of processing 4,000 beef cows and bulls a day.
In the last year, the company has cut its workforce by 10 per cent.
Rosen estimates that Long Prairie, Minn. -- where one of the company's four plants is located -- has suffered job losses resulting in direct payroll reductions of almost $2.5 million and an overall loss of household earnings of over $11 million in the community.
A packing plant in Tama, Iowa, recently closed, sending 540 workers to the unemployment line. Tama's population is just over 2,500.
In Long Prairie, Minn., Mayor Don Rasmussen said his residents are worried work-week reductions at the Rosen plant will progress to full-on layoffs if the border doesn't reopen soon.
Long Prairie is home to about 3,000 people, 300 of whom work at the plant.
"People are certainly talking about it and are worried about it," Rasmussen said. "It would be a huge blow if it closed. We'd sure like to see the reopening of the border."
But it's tough to rally much sympathy among Canadian beef producers for the boomerang effect the crisis is starting to have on the U.S. cattle business.
"It is hard to feel too sorry for them," said Larry Schweitzer, president of the Manitoba Cattle Producers Association. "We've been living this for two years."
Schweitzer said he hopes the downturn in the U.S. industry will help spark a groundswell of support among American producers for the reopening of the U.S. border to Canadian animals.
Some experts say they believe it won't be just small packing plants that will pay the price if the U.S. border remains closed to Canadian cattle.
Ted Schroeder, an agriculture economist at Kansas State University, said the expansion of Canadian meat packers could soon mean the United States will be dependent on the Canadian industry.
``It's not hard to imagine a future where we're sending our cattle to Canada for slaughter,'' he said.
Schroeder said the ramped-up slaughter capacity will mean Canada will be a stronger competitor for beef export markets when the border does open.
According to Agriculture Canada, Canadian slaughter capacity has increased from 77,000 head per week in 2003 to 86,000 last year.
About two dozen Canadian packing plants have been built, expanded or tagged for expansion since the mad cow crisis began.
Earlier this year, the National Meat Association, which represents small U.S. meat packers, appealed a federal judge's injunction against reopening the border to Canadian cattle imports. The association said small U.S. packers that relied on Canadian cattle to survive could face ``imminent economic collapse'' if the border does not reopen soon.
A federal U.S. judge is expected to hear arguments later this summer from a U.S. protectionist group on why the border should remain closed to Canadian cattle.
The $16-million Ranchers' Choice Beef Co-op processing plant is expected to be up and running in Manitoba later this year.
A second new facility slated for Neepawa, Man., is still in development.
© CanWest News Service 2005 |
Not a particularlly well written article, but it is a subject I have wondered about. With billions in Canadian beef staying this side of the divide, how are the packers doing?
Apparently not very well.
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Zulu Elephant
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Whats with all the agriculture threads recently. We've got GM foods, BSE and EU Farm subsidies all in the top five threads right now.
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Zulu Elephant
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Does anyone seriously believe that the US has never had a case of Mad Cow?
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notyoueither
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of naught
Aug 2001 time: 22:20
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http://www.cbc.ca/story/world/natio...calf050302.html
quote: U.S. court blocks Canadian cattle
Last Updated Thu, 03 Mar 2005 12:29:54 EST
CBC News
BILLINGS, MONT. - A judge in Montana has granted a temporary injunction to stop the U.S. government from reopening the border next week to Canadian cattle.
The ruling comes in response to a lawsuit filed by the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF USA), which claims if the border reopens it will cause producers immediate and irreparable damage.
U.S. District Judge Richard Cebull, who said he would give his written reasons Wednesday or Thursday, told the lobby group for American ranchers that they should apply for a permanent injunction.
It is likely the U.S. Department of Agriculture will appeal his decision, but it is unknown whether an appeal could be heard quickly enough to make a difference for the reopening date.
The border was set to open to young cattle, those under 30 months, starting on Monday, March 7, and Canadian producers were beginning to ready shipments for the first time in 21 months.
"It's definitely not a good day for our industry," said Ted Haney, president of the Canada Beef Export Federation, adding that it may be time to start investigating Canada's options under the World Trade Agreement or the North American Free Trade Agreement.
R-CALF claims that reopening the border will hurt the U.S. cattle industry economically, pose a threat to consumers and create losses of up to $3 billion US.
They said the border reopening would increase the risk of importing contaminated beef products from cattle infected with bovine spongiform encephalopathy – mad cow disease – into the U.S. They argue that would shatter consumer confidence in the American cattle industry.
Canada would ship two million animals south in the first 12 months if the border reopens, R-CALF says. The American cattle industry has been reaping high prices for their animals since the border closed.
The group also claims Canada has failed to adequately test for BSE and that letting Canadian cattle into the U.S. could harm trade negotiations with countries like Japan. Japan closed its borders to the U.S. after a Canadian-born cow tested positive in Washington state.
The U.S. banned Canadian cattle imports in May 2003 when mad cow disease was discovered in a Canadian cow.
Late last year, the U.S. Department of Agriculture declared Canada was a minimal risk country.
During Wednesday's hearing, Cebull asked a number of questions about whether American consumers would be aware of where their beef came from and how great the risk was of a BSE-infected animal crossing the border. The USDA argued the risk would be minimal.
R-CALF succeeded last year in obtaining an injunction to halt a USDA decision to allow additional cuts of meat from Canada, also argued in front of Cebull.
International Trade Minister Jim Peterson said the ruling was "a real setback."
"We will use every possible measure we can to get the border reopened again," Peterson said. "We received assurances the border would be open March 7, we agreed it would be a science-based determination, and the Americans came up and inspected all the processes and found them to be the highest standard.
"I'm very disappointed." |
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notyoueither
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of naught
Aug 2001 time: 22:20
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quote: Originally posted by Kuciwalker
quote:
They said the border reopening would increase the risk of importing contaminated beef products from cattle infected with bovine spongiform encephalopathy – mad cow disease – into the U.S. They argue that would shatter consumer confidence in the American cattle industry. |
How the hell does that get you a court injunction though? Shattering consumer confidence isn't illegal... |
I don't know what the judge based his decision on. I'm not sure how he has jurisdiction, but he says he has it.
http://www.cbc.ca/story/world/natio...dcow050303.html
quote: U.S. Senate votes against reopening border to Canadian cattle
Last Updated Thu, 03 Mar 2005 21:54:49 EST
CBC News
WASHINGTON - Canada's cattle industry suffered another blow Thursday after American senators voted to quash the U.S. department of agriculture's policy to reopen the border to Canadian beef next week.
Despite the Senate's 52-46 vote, the White House said U.S. President George W. Bush would veto the measure if it ever reaches his desk. Bush favours the reopening of the border.
The U.S. banned Canadian cattle imports in May 2003 when mad cow disease was discovered in a Canadian cow.
U.S. Agriculture Secretary Mike Johanns said he was disappointed with the Senate vote.
"Today's action undermines the U.S. efforts to promote science-based regulations, complicates U.S. negotiations to reopen foreign markets to U.S. beef and would perpetuate the economic disruption of the beef and cattle industry," he said in a release.
"I will now work with the U.S. House of Representatives to prevent passage of this resolution, which is strongly opposed by the Bush Administration, and continue our aggressive efforts to reopen international markets to U.S. beef."
The Senate vote follows Wednesday's ruling by U.S. district Judge Richard Cebull. He granted an American beef lobby group an injunction to stop the resumption of imports of Canadian cows under 30 months of age.
Cebull issued a 30-page judgment outlining the reasons behind his decision to grant the injunction.
He says that dropping the ban on Canadian cattle will attach a "stigma" to all U.S. meat unless consumers can distinguish between products from the two countries.
"Once the Canadian beef is allowed to intermingle with U.S. meats, it will open a flood of speculation," Cebull wrote.
"Neither the contaminated meat nor the stigma associated with contaminated meat could be removed from the U.S. cattle industry and the substantial, irreparable injury will have occurred."
The injunction resulted from a lawsuit filed by the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF USA), which is trying to block the U.S. Department of Agriculture's plan to reopen the border to cattle younger than 30 months on March 7.
The group argues that the move would cause producers immediate and irreparable damage.
In his decision, Cebull says the USDA had a "preconceived intention" when it declared Canada a "minimal-risk" region for bovine spongiform encephalopathy, or BSE.
The judge says the department rushed to resume trade "regardless of uncertainties in the agency's knowledge of the possible impacts on human and animal health."
"Deference cannot be given to any agency that has made the decision to open the border before completing the necessary scientific analysis of risks to human health. The USDA cannot favour trade with Canada over human and animal health within the U.S."
Agriculture officials haven't responded to the court decision, which gave both sides 10 days to set a trial date. |
I think what the USDA is worried about is other countries using the American treatment of Canadian beef as a precedent for keeping US beef out.
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