Country of origin labeling in the U.S could be the
toughest blow the American farmers could deliver against the Canadian beef
industry. Right now, country of origin labelling is voluntary, says John
Newman, vice chair of the Beef Improvement Center. But that will only be
for two years.
In the beginning, country of origin labeling was to be
compulsory but the resolution became modified when it went through the
American National Cattlemen’s Association. Newman says both the
processing and packing industries oppose country of origin labelling,
because it adds to the cost of beef.
What’s worse, American plants that handle small
volumes of Canadian beef may simply cease to buy Canadian cattle. Other
plants will continue to buy but at discounts. In 2001, Canada exported 51
per cent of its combined beef and cattle production to the U.S. Live
cattle exports were valued at $1.7 billion dollars. Beef exports were also
valued at $1.7 billion.
Canada had a $2.68 billion surplus with the U.S.
The last week in September, Newman headed to Alberta to
help draft a Canadian strategy. He is mum about the details, but the
Canadian Cattlemen’s Association (CCA) will be working with the federal
government to legally challenge country of origin labelling under the World
Trade Organization and NAFTA. In addition, the CCA is working with the
National Cattlemen’s Association and the Food Coalition representing
U.S. packers and processors to keep the regulations voluntary.
Foreign beef makes up 16 per cent of U.S. consumption, with Canadian
cattle and beef representing less than three per cent. Newman is a
cow-calf operator in North Gower, part of the new city of Ottawa.
