Cca Federal Election Information 2008 _final

CANADIAN CATTLEMEN’S ASSOCIATION

Information for Federal Candidates in Canada’s 40th General Election September 9, 2008

This document is available at www.cattle.ca

CANADIAN CATTLEMEN'S ASSOCIATION The Canadian Cattlemen’s Association is pleased to provide information on current issues in the Canadian cattle and beef industry. We are making this information available to all candidates.

The Future of Canada’s Beef Cattle Sector Canada’s beef cattle sector has historically been the largest single source of farm cash receipts in Canada. While the last five years have presented a series of unprecedented challenges to our industry, we remain confident that there can be a strong future. Around the globe we are seeing food riots, reduced livestock feeding, increased grain production, and even export restrictions. Cattle on feed numbers are down across the world and generally cattle inventories are declining. At the same time, demand for high quality beef is growing. In other words, supply is shrinking while demand is growing. The question is, “Who will benefit from this?” and, more importantly, “What can we do to make sure that Canadian cattle producers benefit?”. Canada is the largest exporter of high quality (grain fed) beef in the world. We believe we can position our industry on the basis of our quality and safety initiatives under our new Canada Beef Advantage strategy to recover and grow from our current challenges. This document outlines a number of recommendations for Government that we have identified to realize our vision of the future. These recommendations are made to compliment the numerous initiatives that industry is undertaking.

Enhanced Federal Trade Negotiations Capability Canada is one of the largest exporters of red meat and livestock in the world. Over 60% of Canadian cattle and beef production must be exported. BSE related restrictions that continue to impact Canada’s beef cattle industry are estimated to be costing $100 per head or close to $350 million a year. For many producers this amount is the difference between survival and failure. The market closures and the enormous effort and resources needed to regain and protect market access has demonstrated serious and costly inadequacies in the resources and capabilities needed to properly undertake the trade negotiation efforts that only government can lead. Examination of key competitor nations further demonstrates that the Canadian Government has not made the level of commitment that other equally trade dependent countries have. At present, limited resources available to too few federal government trade negotiators causes them to struggle to undertake multiple trade negotiations simultaneously. The result is significantly depressed cattle prices for Canadian beef producers. “Our vision for a dynamic, profitable Canadian beef industry is to have Canadian high quality beef products recognized as the most outstanding by Canadian and world customers.” Page 1

CANADIAN CATTLEMEN'S ASSOCIATION The Canadian Cattlemen’s Association on behalf on a multi stakeholder group including Canada’s pork industry has completed a comprehensive analysis of the changes that are necessary to make Canada a leader in technical market access negotiations. CCA urges all parties to support the enhancement of the federal government’s agriculture trade negotiating capability as a top priority.

Competitiveness Issues In order to ensure that beef purchasers in the domestic and export markets will choose Canadian beef, our Canadian cattle and beef industry must be competitive. Therefore the objective of increasing market access must go hand in hand with ensuring we retain our ability to compete in all markets, domestic and international. The Canadian cattle industry is struggling to compete in the face of several pressures justified as seeking to ensure food safety, animal care, the environment or some other objective. To be clear, cattle producers generally agree with these objectives. Unfortunately regulatory proposals are frequently not scientifically justified and almost never consider the ability of cattle and other agricultural producers to compete. If government determines it is necessary to impose costs on Canadian farmers, ranchers and food processors not faced by our international competitors, it is only fair that they provide assistance to ensure we are not disadvantaged by those additional costs. Specific requests by the CCA include: 1) Complete the review of all meat inspection and animal health fees including hours of service to ensure a competitive cost structure with the USA. 2) Ensure Canada’s approval process for products (veterinary/pharmaceutical, pesticides, biologics, new forage and grain varieties, etc) are as or more efficient than our international competitors such as the USA and Australia. 3) Work toward bringing Canadian “specified risk material” (SRM) policies back on a closer footing with our international competitors. Until this can be achieved, assist the industry for the higher cost of operating in Canada. 4) Put greater emphasis on trade and competitiveness impacts on all regulatory initiatives. 5) Increase research into improving feed grain yields and for forages and grazing.

“Our vision for a dynamic, profitable Canadian beef industry is to have Canadian high quality beef products recognized as the most outstanding by Canadian and world customers.” Page 2

CANADIAN CATTLEMEN'S ASSOCIATION

Business Risk Management for Cattle Producers Business risk management (BRM) programs are not working for Canadian livestock producers. Neither AgriStability nor Canadian Agricultural Income Stabilization (CAIS) before it were designed to help agricultural producers through multi-year disasters as were experienced by beef producers due to the 2002 drought, BSE and the market collapse of the past year. The present system is also too slow to respond to producers’ needs, and can lead to market distortions because payments are received after market conditions have changed. In the absence of an adequate national program, individual provincial governments have spent the past year delivering an uncoordinated string of ad hoc payments. The extent of these payments ranges greatly from province to province, upsetting competition amongst producers from one region to another. We must return to a national approach for livestock BRM in Canada. This will require a workable suite of federal programs and leadership to ensure all provinces are working together in a common approach. Specific requests by the CCA to improve BRM include: 1) CCA strongly advocates a national approach with harmonized programs across Canada; 2) the viability test for AgriStability/CAIS must be eliminated; 3) negative margin coverage should be increased to 70%; 4) allow producers to calculate reference margin on either their last three years or the “olympic average”; 5) eliminate caps from AgriInvest and AgriStability/CAIS; 6) waive the downward structural change adjustment (commonly known as “downsizing”) for beef producers in 2008 and 2009; and 7) ensure inclusion of new and expanding operations in BRM programs. There are several additional improvements that should be made to how the programs are administered. The CCA asks that a review of the effectiveness of BRM programs be undertaken and that we be included in all efforts to review and re-design them.

“Our vision for a dynamic, profitable Canadian beef industry is to have Canadian high quality beef products recognized as the most outstanding by Canadian and world customers.” Page 3

CANADIAN CATTLEMEN'S ASSOCIATION

WTO Negotiations The market access improvements from the WTO negotiations are estimated to result in a potential annual increase for Canadian agricultural exports of approximately $3 billion. Nearly $1 billion of this would be beef. Much of this benefit could be sacrificed if exemptions for so called “sensitive products” are not kept in check. Many countries consider beef, pork, grains and oilseeds to be “sensitive” and, if given the chance, would maintain high tariffs to limit imports of such Canadian products to their markets. Unfortunately, Canada’s present negotiating mandate to make no tariff cuts on any of Canada’s “sensitive products” jeopardizes the future of the Canadian beef and other export-dependent agriculture sectors. The Canadian Cattlemen’s Association urges all parties and candidates to acknowledge publicly the importance of agricultural exports and to support the Doha Round by stating they will empower Canada’s negotiators to secure an ambitious outcome for the WTO negotiations.

Country of Origin Labelling in the United States The United States is implementing a new mandatory country of origin labeling requirement on Sept 30, 2008 for beef, pork and other products. Some of the requirements will result in discrimination against Canadian livestock and meat. Canadian industry and government officials have worked for years to minimize the potential impact of this law. Some improvements have been made, but even the watered down version discriminates against Canadian products and violates the WTO and NAFTA. The Canadian Cattlemen’s Association is urging the Government of Canada to exercise its trade agreement rights and seek the elimination of this discriminatory law.

“Our vision for a dynamic, profitable Canadian beef industry is to have Canadian high quality beef products recognized as the most outstanding by Canadian and world customers.” Page 4

CANADIAN CATTLEMEN'S ASSOCIATION

Food Safety Consumers insist that the food they purchase is safe, and rightly so. Canadian cattle producers are committed to ensuring that the beef we produce is safe for all consumers, which includes our own families. The Canadian Cattlemen’s Association has developed an extensive on-farm food safety program called Verified Beef Production (VBP). Under this program, we provide training to producers so that they have all the latest knowledge to produce wholesome and healthy beef. Successful completion of the VBP training is a requirement for the Canadian Beef Advantage marketing initiative. The Federal Government can support these industry efforts by continuing to fund VBP training workshops. Electronic pasteurization is one of the most effective mitigations for control of foodborne pathogens. The CCA has long advocated the approval of this technology for use in the production of beef products. We would like to see the approval of this technology by Health Canada.

Animal Health and Care The Canadian population in general insists that all animals, whether they are domestic pets or agricultural livestock, be properly treated and cared for. Cattle producers have long been leaders of this mindset. The vast majority of cattle producers have chosen this lifestyle because of their love and respect for animals. The CCA works with government, other livestock producer groups, animal protection agencies as well as other handlers and processors of livestock to ensure appropriate policies are in place to ensure animals are properly treated throughout their lives. The CCA participates in the Canadian Animal Health Coalition (CAHC). We support and participate in CAHC programs including the West Hawk Lake Project, the National Voluntary Johne’s Disease Control and Prevention Program and the Farmed Animal Health Strategy. Initiatives such as these can advance animal health issues in a scientific and collaborative manner. The CCA supported the recent increase in penalties for animal cruelty passed by the Federal Government in Bill S-203.

“Our vision for a dynamic, profitable Canadian beef industry is to have Canadian high quality beef products recognized as the most outstanding by Canadian and world customers.” Page 5

CANADIAN CATTLEMEN'S ASSOCIATION

Environment Cattle producers are long-time partners with the environment in the production of wholesome, nutritious beef. Years of experience have made cattle producers very knowledgeable in conserving and enhancing the environmental and economic sustainability of agriculture. The annual CCA Environmental Stewardship Award recognizes that producers are stewards of the renewable natural resources they manage. The award profiles just one of the countless producers that take pride in maintaining and enhancing those resources for future generations. This is the essence of good livestock management practices, which have sustained the beef cattle industry in the past and will continue to do so in the future. Cattle producers care and are voluntarily changing production practices to make their operations increasingly environmentally sustainable. CCA appreciates the opportunity to effectively utilize federal funding in tech transfer programs such as the Grazing Mentorship program. Experienced grass managers offer their expertise to producers looking to increase the health and biodiversity of their grasslands and positively impact their bottom line. CCA urges the Federal Government to support cattle producers’ environmental efforts by: 1) Ensuring opportunities for agriculture to effectively participate in a domestic carbon offset system by developing practical, science based protocols. Cattle farms and ranches are part of the greenhouse gas mitigation solution. 2) Ensuring adequate resources within Environment Canada to effectively implement legislation like the Species at Risk Act where cattle producers’ active participation will conserve Canada’s natural resources and minimize risk to the industry; and 3) Increasing resources for beef cattle research particularly in native grasses, forages and grass management. A healthy functioning grass ecosystem is an important public face for the industry and an emerging factor in the industry’s competitiveness domestically and internationally.

For further information, please contact John Masswohl, Director of Government & International Relations Canadian Cattlemen's Association 1207 – 350 Sparks Street Ottawa, ON K1R 7S8 Tel (613) 233-9375 Fax (613) 233-2860 [email protected]

Dennis Laycraft, Executive Vice-President Canadian Cattlemen's Association 310-6715, 8th Street N.E. Calgary, AB T2E 7H7 Tel (403) 275-8558 Fax (403) 274-5686 [email protected]