NEWS RELEASE

August 5, 2004                                                                                       For Immediate Release

BREITKREUZ STRESSES NEED FOR SLAUGHTER FACILITIES FOLLOWING AG REPORT

“While the Auditor General’s findings are very upsetting, I can’t say that I am that surprised.”

YORKTON – The release of a report by Alberta’s Auditor General on Wednesday has enraged many Canadians including Garry Breitkreuz, Member of Parliament for Yorkton-Melville. In the report, the Auditor General concluded that meat packers have nearly tripled their profits since the onset of the mad cow crisis.

“Despite finding that the meat packers have done nothing illegal, I find it hard to understand how one segment of the industry can create for itself such a profit while others, especially our cattle producers, have suffered so greatly,” said Breitkreuz. “While the Auditor General’s findings are very upsetting, I can’t say that I am that surprised.”

During the House of Commons’ Agriculture Committee hearings held earlier this year, Breitkreuz and other Conservative Members of Parliament urged the Competition Bureau to investigate Canada’s meat packers. At that time, there was a clear indication that the plummeting cattle prices and the prices of beef in grocery stores were not at all reflective.

“Our cattle producers are receiving less than half per animal than what was received prior to the BSE finding, yet consumer prices have dropped only slightly. Obviously someone has been making a huge profit,” said Breitkreuz.

The Alberta Auditor General’s report indicated that the meat packers’ profits can be attributed to the supply-and-demand factor. When the crisis hit in May 2003, Canadians were urged to support their cattle producers and demand Canadian beef. While the demand increased, the ability to slaughter and process cattle at a higher volume did not because of the lack of federally-regulated facilities in Canada. So as cattle producers sell their animals to the processors at basement prices, the processors have been able to make a large profit when selling it to grocers.

“It comes down to an immediate need to alleviate the pressure on the industry,” said Breitkreuz. “We cannot rely on the hope that the border will re-open to Canadian cattle exports. We need to increase our own slaughtering capacity now. The Liberal government should be helping smaller facilities meet federal regulations, or it could be assisting in the construction of new plants. This wait-and-see approach is not an option.”

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