040110 U.S. Delays Opening Border to Canadian Beef

Canadian cattle producers were dealt another sharp hit as U.S. officials ruled out any quick decision on reopening the border to live cattle until its mad cow investigation concludes.

The U.S. Department of Agriculture said Friday it might delay, or even reconsider, its proposal to allow Canadian cattle imports, banned since a case of mad cow disease in Alberta last May.

Alberta ranchers say they are preparing for the worst after the U.S. confirmed its first case of mad cow in a Washington state dairy cow that is believed to have originated in Alberta.

Arno Doerksen, chairman of Alberta Beef Producers, hoped any postponement would be brief to prevent further damage to an already beleaguered cattle industry.

"We need to see cattle move," he said. "We've been cast under a cloud of uncertainty because of this."

However, Doerksen said industry groups are also starting to discuss possible compensation strategies with both provincial and federal governments if a delayed border opening throws prices into another downward spiral.

"It's a little too early to say exactly what's going to be needed . . . to offset some losses," he said.

The cow that tested positive for BSE on Dec. 23 has been linked to a farm near Leduc. DNA tests to verify the origin of the animal are expected early next week.

U.S. officials quarantined a third farm in Washington state on Friday as investigators trace 81 cattle believed to have been imported with the infected cow in 2001.

The latest quarantine came after the U.S. Agriculture Department located another cow from the Canadian shipment believed to have come from Alberta.

Eleven cows from the Alberta herd have now been located.

Ron DeHaven, chief veterinarian for USDA, said all options are under consideration on a proposal to readmit cattle under the age of 30 months following Canada's case of mad cow disease.

That could include extending the public comment period -- scheduled to wrap up Monday -- or reopening it at a later date, he said.

USDA officials said they are also considering scrapping the current proposal entirely in favour of a new rule.

"All of those are options that are currently on the table," DeHaven said in a daily briefing from Washington, D.C.

"I think one thing would be for certain -- that we would not make any determination, in terms of a final rule, without giving all due consideration to the new situation."

A late-afternoon news release from the agriculture department said the comment period will close as scheduled on Monday, but may reopen at a later date, depending on the results of the investigation into where the diseased Washington-state cow was born.

The U.S. has allowed some beef products since September, but producers were counting on the resumption of live cattle exports, which represent nearly half of Canada's $4-billion annual beef trade.

The country's cattle industry is still reeling from a loss of export markets that sent prices plummeting after a case of mad cow disease on a northern Alberta farm on May 20.

More than 30 countries closed their borders to Canadian beef, resulting in a $1.9-billion hit in export sales.

Producers are already bracing for lower prices when Canadian cattle markets return to full swing next week following the holiday break.

Feeder cattle prices were about 10 per cent lower on Internet sale on Friday, said Will Irvine of Calgary Stockyards Ltd.

A similar sale of slaughter cattle earlier this week saw prices fall about 20 per cent, to about 70 cents a pound.

Canada has not received any official notice the USDA intends to change the process, a federal agriculture official said.

Canada has argued against the postponement now being urged by U.S. industry heavyweight, the National Cattlemen's Beef Association.

"We see anything that threatens to delay the resumption of trade in live animals as disappointing," said Ian Thomson, director of trade policy for the western hemisphere for Agriculture Canada.

Ottawa also gave the U.S. the benefit of the doubt last week, applying only limited restrictions as more than two dozen countries banned American beef, said an trade official with Alberta Agriculture.

The Canadian Cattlemen's Association said it was too early to say whether the delay was a setback.

"Obviously we'd like to see it move ahead as quickly as we can," said Dennis Laycraft, executive director of the association.

"There's no reason the products that were first identified couldn't move,” he said.

"We're also working to broaden that list."

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