Single BSE-infected Cow Costs Canada $2.5 Billion

11/20/2003 Single BSE-infected Cow Costs Canada $2.5 Billion - 11/19 MeatingPlace

The fallout from the May 20 discovery of a single Alberta cow infected with BSE "represents the greatest threat and shock the Canadian agricultural industry has ever experienced," said the report, written by Serecon Management Consultants Inc. of Edmonton. "Cattle need to be culled, farmers may need to be moved out of the sector, and rural communities may need to face increased downsizing."

In early September, after a massive investigation of the Canadian beef industry turned up no other cases, U.S. officials opened the border to limited types of meat from young animals. U.S. officials have since proposed rules to allow cattle and more cuts of beef into the country -- pending a 60-day period of public comment.

The new study, which assumes existing trade bans will continue until early 2004, said the beef industry has lost about $800 million in meat exports.

For the U.S. beef industry, the months since Canada's beef sector crisis began in May have been good ones. As Canada's export-dependent beef industry faced a crisis of low income and market glut, American cattle producers saw stronger markets and soaring prices.

Meanwhile, American beef continued to pour into Canada unrestricted because of North American Free Trade Agreement rules. "Canada was unable to introduce an import ban policy on these products to help increase the domestic oversupply," the report said.

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