The Losses in the Beef Sector in Canada From BSE

The appearance of BSE in the Canadian beef herd brought immediate financial hardship to the industry due to the immediate closure of export outlets to Canadian beef, live animals and by-products. Nobody knew how long the border would stay closed and many worried that the Canadian beef industry could not survive a prolonged disruption of markets for beef. Previously, producers in Canada had enjoyed secure access to markets for beef around the world, with most of the exports destined for the United States, Mexico, Japan and South Korea. Both federal and provincial governments quickly developed assistance programs and, over the next two years, transferred about $2 billion to various sectors of the beef industry. Government subsidies certainly helped the beef sector but industry representatives argued that it did not cover nearly all the losses that had occurred. This is consistent with the results of this study.Livestock Production/Industries,

The Losses in the Beef Sector

A long history of producing mostly for the domestic market led to institutions and "ways of thinking" that left Canadian producers ill prepared for major exposure to the severe demands of the international market place. The industry expansion that started in earnest in the mid-1980s led by enthusiastic producers and supportive government policies developed into a situation where suppliers became vulnerable to the closure of export markets. Efforts by governments to negotiate international trade accords to prevent indiscriminate border closures ultimately proved fruitless in the face of the BSE discovery in Canada. Moreover, governments, primary producers and packers in Canada appeared to have learned little from the British experience of long term closures to export markets and were not well prepared for the eventuality of discovering BSE in Canada. For the long term success of the Canadian beef sector, it is important to continue to seek international agreement on appropriate protocols that not only limits consumer exposure to animal diseases and pests but also takes account of the real risk to human health as based on scientific knowledge and evidence. At the same time, Canadian beef producers need to be cognizant of their vulnerability to export markets and so adopt production practices and supply chains that are in line with changing consumer wants in export markets

The Losses in the Beef Sector in Canada From BSE

The appearance of BSE in the Canadian beef herd brought immediate financial hardship to the industry due to the immediate closure of export outlets to Canadian beef, live animals and by-products. Nobody knew how long the border would stay closed and many worried that the Canadian beef industry could not survive a prolonged disruption of markets for beef. Previously, producers in Canada had enjoyed secure access to markets for beef around the world, with most of the exports destined for the United States, Mexico, Japan and South Korea. Both federal and provincial governments quickly developed assistance programs and, over the next two years, transferred about $2 billion to various sectors of the beef industry. Government subsidies certainly helped the beef sector but industry representatives argued that it did not cover nearly all the losses that had occurred. This is consistent with the results of this study

The Losses in the Beef Sector

A long history of producing mostly for the domestic market led to institutions and "ways of thinking" that left Canadian producers ill prepared for major exposure to the severe demands of the international market place. The industry expansion that started in earnest in the mid-1980s led by enthusiastic producers and supportive government policies developed into a situation where suppliers became vulnerable to the closure of export markets. Efforts by governments to negotiate international trade accords to prevent indiscriminate border closures ultimately proved fruitless in the face of the BSE discovery in Canada. Moreover, governments, primary producers and packers in Canada appeared to have learned little from the British experience of long term closures to export markets and were not well prepared for the eventuality of discovering BSE in Canada. For the long term success of the Canadian beef sector, it is important to continue to seek international agreement on appropriate protocols that not only limits consumer exposure to animal diseases and pests but also takes account of the real risk to human health as based on scientific knowledge and evidence. At the same time, Canadian beef producers need to be cognizant of their vulnerability to export markets and so adopt production practices and supply chains that are in line with changing consumer wants in export markets.Livestock Production/Industries,