040415 U.S. Cattle Group Says Border Must Open

Representatives of the largest American beef industry group said last week that American ranchers trying to pressure their government to keep the U.S. border closed to Canadian cattle have it wrong.

"There are producers out there wishing for the Canadian border to be closed for the next millennium. If you look at that in a sensible, economic, scientific and neighbourly way, how could we stand for that kind of activity?" said Chandler Keys, policy analyst with the National Cattlemen's Beef Association.

As well, he told reporters April 2 that if the United States wants to convince international buyers to resume beef trade with the U.S., then the U.S. must resume trade with Canada.

Members of the NCBA told reporters that the U.S. cannot expect Asian trading partners to accept American beef if the U.S. does not trade with Canada.

"All of us are trying to get back to a pre-BSE situation and trying to get the market stabilized again. How can we as producers not want that to happen?" Chandler said.

The NCBA represents about 200,000 American beef producers.

On April 7 the U.S. Department of Agriculture closed the comment period on whether to resume live animal trade and expanded beef sales with Canada because it is a minimal BSE risk country. The original comment period posted last fall was extended beyond Jan. 4 when a Canadian import showed up as BSE positive on a Washington state dairy farm on Dec. 23.

If live trade opens later this year, some worry a wall of Canadian cattle moving south could collapse American markets. Last fall, U.S. cattle producers had record prices for live cattle and beef. This was due to a low beef supply with no Canadian cattle coming across the border.

"The Canadians don't want the U.S. cattle industry harmed with the reopening. They rely on it. It's a simpatico relationship," Keys said.

While the Americans say trading with Canada is important, there is greater emphasis on resuming trade with Asia. Japan was a $1 billion US market before Japan halted trade Dec. 23. It may be the hardest border to crack, whereas Taiwan and Hong Kong may resume trade sooner.

"It is hard for us to speculate the time frame of that. We can't control what these other governments do," said NCBA chief executive officer Terry Stokes.

Steve Kay, editor of the American market newsletter Cattle Buyers Weekly, speculates extreme losses in the American packing industry may carry heavy influence in convincing American politicians to resume normal trade.

"Some packers could go out of business if export markets don't reopen before year end. Financial pressure on beef processors and exporters is building every week those markets remain closed," he told the annual meeting of the Alberta Municipal Districts and Counties Association.

The U.S. industry is losing $100-$300 million because of reduced production among packers and allied industries.

On the ground, auction companies like Vold, Jones and Vold Ltd. at Ponoka, Alta., have seen increased activity by American buyers speculating on a summer border opening.

"Some guys are going to feed them up here and go to grass. Some have made arrangements to go to feedlots. Some will leave them up here as long as they can until they find out what happens," said Blair Vold.

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