BSE still affecting Canada

THE US ban on Canadian live exports because of BSE continues to cause big problems for Canada‘s beef export business, reports the Financial Times.

According to the Canadian Cattleman‘s Association nearly 500,000 cattle are now on holdings across the country with virtually no market value. 

Since the first BSE case was identified in May 2003 prices of live cattle have dropped nearly 40%. 

With 58,000 cattle coming on to the market each week in western Canada, and only slaughtering capacity for 55,000, the industry fears the prices may yet fall further.

Alberta farmer John Buckley who keeps 800 cattle has now been forced to accommodate another 175 as there is no market for older cattle. 

“There isn‘t a market,” Mr Buckley told the FT .  “I can‘t afford to pay a truck to give them away.” 

In the past, cattle over 30-months would have been exported to the US for use in hamburger meat and other low-quality uses.

The cattlemen‘s association estimates that beef exports are now at about 90% of pre-BSE levels. 

Exports during the 12 months prior to the border closure amounted to C$2.2bn (£917m).

However, the trade in live cattle worth C$1.2bn in the year to May 2003 is still banned.