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Ontario producers encouraged by announcement of BSE compensation package

June 18 2003 (Guelph) –Yesterday’s announcement of a compensation package for a beef industry crippled by one case of BSE clearly indicates that all levels of government recognize the serious nature of the situation. Ron Wooddisse, President of the Ontario Cattlemen’s Association (OCA) noted that his association is encouraging the Ontario government to participate in a federal/provincial cost share arrangement for the recovery program.

Mike McMorris, OCA’s Executive Director, said that the association is pleased by the announcement but added that there are a number of details that need to be addressed by both levels of government before the program is workable for the beef industry.

OCA supports the position of the Canadian Cattlemen’s Association that the program’s end date be changed to 15 days after the U.S. border reopens to live cattle. The current proposal suggests that the program end after the border opens to muscle cuts. A workable recovery program must be in place long enough to allow a significant number of market ready cattle to clear the system.

Other concerns include the need to deal with beef producers’ inability to market their cattle due to limited processing capacity and the proposed diminishing coverage of losses as prices drop.

OCA also sees the need for a national committee to be established, with representation from all provincial associations, to address, on a weekly basis, issues such as these as they arise.

Said McMorris, "It’s essential that the program be flexible enough so as to be able to deal with changing needs as this situation unfolds."

Beef is the second largest commodity in Ontario in terms of annual farm gate receipts with a value of approximately $1.2 billion. Beef exports from Ontario to the U.S.A., in 2002, were valued at $354 million in live cattle and an additional $292 million in beef product.

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For further information:

Mike McMorris, OCA Executive Director, 519-824-0334;

OCA Website: www.cattle.guelph.on.ca

 


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