March 12, 2004
The fallout from the lone case of BSE detected in Canada continues to be
felt in every agriculture-related industry. With one of every seven jobs in
Canada stemming from the agriculture and agri-food sector, it is not just the
cattle producer feeling the effects of this crisis. Even veterinarians, truck
drivers and many other businesses that rely on farmers, are hurting from the
border closure. Cattle producers just can’t afford vet bills or medicines and
are choosing to omit those costs. As bad as it is for veterinarians and
businesses, it is so much worse for our farmers. The losses being felt by cattle
producers cut so deep, many are being forced to sell off their herds for next to
nothing - for many that sale means giving up the farm and all they have ever
worked for.
The live cattle population is at it highest level ever in this country.
Producers are feeding 2.2 million more cattle than they were this time last
year. There is no shortage of beef in this country and live cattle are worthless
to the actual cattle producer. So why is it that, aside from ground beef, we
haven’t seen a real drop in prices in the grocery store. Someone is certainly
making a profit, but it is not the farmers who are living day to day just to
keep their animals alive.
I recently sat in on Agriculture Committee hearings dealing with the
issue of retail beef pricing. Witnesses, such as the Commissioner of the
Competition Bureau, have been questioned by Members of Parliament, including
myself, on possible collusion by slaughterhouses. While the facts are clear to
everyone else, the Competition Bureau said it could not detect that any
violation had been made against the Competitions Act. Anyone shopping in a
grocery store can see that the price of prime beef cuts, such as higher-end
steaks and roasts, has not declined like cattle prices have. Even though the
Province of Alberta has released a vague report clearing packers of price
gouging charges, much more investigation will need to be done and the
Competition Bureau has again been asked to get involved.
Members
of all federal political parties are aware of the burden these slaughterhouses
are placing on the independent cattle producer. We know the larger packing
plants like Cargill and Better Beef also operate their own feedlots, thereby
competing with the same independent cattle producers they are buying cattle
from. While this practice is not new, it has become more evident since the
borders were closed to Canadian cattle. The Liberal government says it can
sympathize with the frustration being felt by producers, but yet it keeps a
hands-off approach in terms of launching any action against the packers. I
assure you this is an issue that will continue to be probed, regardless of when
the border is reopened to live cattle.
To
all those who have called my office for answers to this crisis, I hear you loud
and clear, and my party colleagues also hear and understand the need for help.
That is why the Conservative Party has compiled an action plan for the Canadian
agriculture sector. We see how frustrating it is for producers to spend hours
filling out forms for federal financial aid programs that really provide little
or no relief. The Liberal government has failed our producers with programs like
the Canadian Farm Income Program (CFIP) and the Canadian Agriculture Income
Support Program (CAIS). The Conservative Party sees a need to top up those
programs, and pick up where the Liberals have fallen short in helping producers.
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Instead
of providing just 60 to 70 per cent payouts with CFIP, the Conservative
Party’s Agriculture Action Plan sees 100 per cent coverage. A mature livestock
rationalization program and an increase in the processing capacity for not only
mature livestock, but all other livestock sectors are just two other means the
Conservative Party will use to help our producers through this crisis. We also
see the need to ensure that this catastrophe never happens again. Defensive
measures are necessary such as integrating North American rules on processing.
The identification and handling of Specific Risk Materials (SRMs), disposal of
SRMs, protocols on rendering and fully integrated trace-out programs would see
the North American industry under one umbrella, one set of rules. There would be
no question as to what neighbouring countries consider acceptable practices and
therefore no need to close borders should BSE be detected in the future. Never
again would we have to see our country’s livestock producers so devastated by
an isolated case of BSE.
There
is so much more that could be done by this government to get the border open,
but the Liberals are choosing to wait for the Americans to make the first move.
While the North American market is huge for Canadian producers and the number
one priority is to return that market to normal, there are many more avenues
that could be approached, including the underdeveloped Russian and Japanese
markets.
There
is a very bright future for Canadian cattle production, provided help comes
before this entire agricultural sector collapses. Already members of the cattle
industry are taking the initiative to seek alternative markets – a group from
Alberta has recently returned from Russia with the promise of stronger ties to
that market.
Many
producers won’t be able to hold on to their animals or farms if the Liberal
government continues to remain a bystander, but with the Conservative Party’s
Canadian Agriculture Action Plan, there is help on the way.