Ontario Beef Growers Have Lost Hundreds Of Millions Of Dollars Since U.S. Closed

Ontario cattle farmers have lost hundreds of millions of dollars in the past year since the U.S. closed its border to Canadian beef after one case of bovine spongiform encephalophy (BSE) was found in Alberta.

Ontario Cattlemen¹s Association president Jack Tindall, of Desbarats, said that for the 200 Algoma beef farmers ‹ the ³little guys² ‹ the dispute with no end in sight means financial disaster and likely an exodus from the business.

³The next six to eight weeks are critical to the survival of our industry,² Tindall told reporters at a press conference organized by Sault MP Tony Martin. ³We¹re running out of time and out of money to hang on.²

He said the crunch will come this fall when the calves come to market. ³There are rumours going around that calves are going to come to the auction marts and not get a bid and farmers are going to be forced to take them home and possibly not have enough feed to feed them the winter,² he said.

Martin, who will officially be sworn in as the Sault MP in Ottawa today, said the problem has reached grave proportions and he¹s raised the issue to senior caucus. Area farmers have met with NDP agriculture critic MP Charlie Angus (Timmins-James Bay), NDP leader Jack Layton and his caucus to air their concerns.

³We will put pressure on the new government in Ottawa to work with the U.S. to open the border as soon as possible,² Martin said. ³We will also demand that the government work with the Canadian cattlemen to find ways to assist farmers and to stabilize the beef industry.²

Martin said the cattle farming industry in Algoma and Manitoulin accounts for 3,000 direct and indirect jobs. ³This is a major piece of industrial infrastructure in this area and needs to be protected,² he said. Tindall said area beef farmers are facing downsizing because they can¹t afford to maintain their farms.

He said that his finished cattle, which more than a year ago sold for $1.10 per pound, now raise only 55 cents per pound. ³Our expenses are up and our income has decreased to half,² he said. Tindall said he won¹t be able to last the year if something in the system doesn¹t change.

In Ontario, 75,000 cattle are processed per week but 90,000 per week are ready to be processed. The oversupply hasn¹t led to lower beef prices, Tindall said.

It would take almost two years to increase processing capacity by building a new processing centre, so Tindall said the government must settle the dispute and have the U.S. border reopened, come through with loan guarantees for cattle farmers or find another solution quickly.

A depopulation of the herd is a last resort, he said. ³The industry will never be the same but there is little chance of much of it surviving right now if things don¹t change,² he said.

Tindall said he believes the matter is strictly a trade issue. ³You have U.S. cattlemen who are enjoying record profits,² he said, noting that government officials have said that they have never seen a border closed so tightly for so long.