Small businesses feel the pinch of mad cow

At least one cow-calf operation closed its doors in western Ontario this year and more than 20 communities in Ontario have declared themselves economic disasters as farmers wait and hope for the United States to open its border to live cattle. Six communities declared economic disasters are in eastern Ontario.

As it stands, one in five businesses in Ontario have been hurt by the BSE crisis, says Garth Whyte, executive vice-president of the Canadian Federation of Independent Businesses. In a quarterly poll, the federation found that 5 per cent of Ontario businesses were "significantly harmed" by BSE and 14 per cent have been "slightly harmed."

But in Alberta and Saskatchewan 51 businesses say they have been hurt by mad cow disease, the poll of more than 3,000 businesses reports.

In eastern Ontario, The Vanderbyl cow-calf operation near Vankleek Hill has watched revenues drop this year by $100,000 due to lost sales in the United States. Some dairy farmers count on selling replacement heifers to the United States are now seeing 40 per cent of their revenues disappear. "I lost $50,000," said Pontiac County, Quebec, dairy farmer Chris Judd, because he now has no market for his replacement heifers.

Farm suppliers are also facing the crunch. R.K. Animal Supply, suppliers of cattle handling equipment and show supplies, felt the pinch immediately after the U.S. border closed May 20. Owner Andy Reid said sales to beef farmers dropped off dramatically. "I can probably count them on one hand," he said. "It just stopped."

The Moorefield-based company, with 10 employees, did not replace two vacancies this year after employees left. The company said it will take six to eight years to recover."

Even his supplier hardware like nuts and bolts has been affected. "It’s not just agriculture anymore," he said.

"Everybody’s feeling the pinch, except for those in protected industries with protected salaries, such as teachers," said Investment Planning Council representative Charlie Twiss, in Guelph. He has many farm-related clients and says that even the auto industry has been affected.

"Farmers aren’t buying trucks, " he said. "In general, the farm equipment business has seen shifting of money being spent. Farmers are reluctant to buy another piece of equipment and get the job done with what they’ve got."

Feed and manure handling equipment sales have dropped off, says Randy Lavier at Farmers Sealed Storage, at Kemptville, who added that his target increase this year has been on line. Farm equipment dealers "are not terribly affected but farmers are not buying those extra things they used to buy," he said.