Canada-China beef trade reopens

China has agreed to allow imports of Canadian beef again, after a nine year pause due to the 2003 BSE crisis. The deal was announced during Prime Minister Stephen Harper’s recent trade mission to China.

The beef market in China has been soaring in recent years as the country’s economy surges ahead, boosting millions of its citizens into a new middle class that desires better food and nutrition options.

“This is potentially great news for our beef industry here in Manitoba,” said MCEC vice-chair Gaylene Dutchyshen. “We recognize we have to create new beef slaughter capacity here in Manitoba and have it export products to targeted international buyers.”

Last year, MCEC took part in a trade mission to China led by CentrePort Winnipeg. There is considerable interest from mainland China to find reliable, consistent sources of high quality protein such as Manitoba beef.

“It’s too early to celebrate, but this latest trade agreement is yet another sign that things are moving in the right direction for Manitoba beef producers,” said Dutchyshen. “We have excellent beef. We have CentrePort. And we have advanced plans for new federally-inspected beef plants to come on stream in the next two years. With all these elements coming together, I’d like to think we’re close to a very positive tipping point.”

 


		

MCEC thanks Manitoba cattle producers for 85% support

As we approach the end of 2011, the Manitoba Cattle Enhancement Council thanks the large majority of Manitoba cattle producers who have not taken a refund from the MCEC investment fund.

MCEC administers an investment fund that is fed by a refundable $2 per head levy on every head of cattle sold in the province. That money is then matched by the province turning every $2 into $4. MCEC’s mandate is to use that fund to invest in projects to strengthen the Manitoba beef industry, with a special focus on bringing federally-inspected beef slaughter and processing capacity back to the province.

Fully 85 per cent, or 7,400 out of 8,700, of Manitoba’s cattle farms decided on their own against applying for a refund in 2010, according to data from MCEC.

“We talk to producers all the time and they tell us that they know the risk to our industry if we don’t get new federally-inspected beef plant capacity back in the province,” said Gaylene Dutchyshen, vice-chair of MCEC. “It’s a positive sign that so many cattle producers are voting with their wallets on this very important issue.”

Another significant reason for cattle producers to support MCEC’s initiative is that they know having a local beef plant will mean more profitability and sustainability for individual farms and the whole sector. Manitoba beef producers earn substantially less for their livestock than their Alberta counterparts. In the first 10 months of 2011, the difference was as high as $130 per fed steer (avg weight 1,300 lbs).

“When you’re looking at trading a $2 levy for the chance to earn up to $130, the math is pretty simple,” said Dutchyshen. “We pay high prices for transportation and other costs to get our animals across the country or into the US. It makes perfect sense for producers here to continue to pull together towards building a beef plant here at home.”

MCEC was born in the wake of the 2003 BSE crisis that closed the US border to Canadian beef exports. While Alberta and Ontario producers still had access to local slaughter facilities, Manitoba producers were faced with surging herds and plummeting prices.