What the new border rule is all about?
Time line: The U.S. published its long awaited ruling on BSE and the border on September 18 but it won’t become effective until November 19, 2007. The 60-day delay gives the U.S. Congress time to evaluate the ruling before passing it. However, the United States Department of Agriculture (USDA) says the decision has been scientifically based and the risk to the U.S. is negligible.
What’s approved? Live cattle and bison born on or after March 1, 1999, a date after which the U.S. Department of Agriculture’s Animal and Health Inspection Service (APHIS) says coincides with Canada’s effective enforcement to the ruminant-to-ruminant feed ban.
In addition, Canada may export blood and blood products derived from bovines collected under certain conditions. Also casings and part of the small intentines. The January 2005 rule allowed the importation of beef and beef products of any age.
How will Canadian cattle be identified? They will need proof of a birth date, an ear tag and a permanent identification like a tattoo or brand unless they were going directly to slaughter. Animals for direct slaughter are monitored in sealed trucks.
What’s the risk to the U.S.? Very little. APHIS says it conducted a thorough risk assessment following the guidelines put forth by the World Organization for Animal Health, known as the OIE, and found the negative impact negligible.
What if more cases of BSE are found in Canada? APHIS found that even if more cases were found in Canada the possible impact on the U.S. herd would be negligible. A multiple of safeguards prevent a BSE animal imported into the U.S. from passing on BSE to another animal.
Effect of Canadian imports on U.S. market: Negligible. Altogether, the U.S. expects an additional 104,000 cull cattle in 2008 increasing to 225,000 in 2012. In 2008, the percentage of culls will represent 1.8 per cent of the U.S. base supply. The per cent of feeder cattle is expected to remain the same while fed cattle is expected to decline. Processing beef will remain unchanged.
How many dairy heifers are expected to come across the border and what will be the impact? APHIS expects the flow to be about the same as before the border was closed. However, the number is believed to be 47,000 in the first year. Dairy producers can expect a price decline of less than one per cent because of breeding cattle imported from Canada. The resulting increase in milk production is expected to be 0.1 per cent. Dairymen can expect a decrease of 0.1 per cent in the price of their milk.
What about goats and sheep? The ruling did not address the importation of sheep and goats.
How many people commented on the ruling? About 400. Some were for the ruling, others want the border slammed shut.
On Nov. 19, what will be the number of days that the U.S. border will have been shut to dairy replacements:4 years and two months.
Value of CDN dollar on May 19, 2003: US 0.73