September 27, 2019
The AgriPost Drought Causes State of Emergency for Majority of Manitoba Cattle Producers keep them in the industry if they have to sell their stock off. Producers are advertising whole herds right now,” he said. Many producers are wondering what to do with the three options available. “One, you sell your herd, secondly, you buy in feed, and the feed is so high that it’s not cost-effective but cost-prohibitive right now. Or thirdly, you find some-
one to feed your cattle for you. You make a deal with the feedlot somewhere to feed your cattle. That’s what people are scrambling to do right now, but it’s a tough go,” he said. The President of the Manitoba Beef Producers Tom Teichroeb a rancher at Langruth, said this drought could well represent up to 80 per cent of the cattle in Manitoba. “This area and the Park-
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land region. Yes, I would agree. It’s a large number. I’m not saying every producer is in that position, but a good percentage of them are because even with some spotty rains some producers have only a little feed,” said Jonasson. “But I don’t know of any producer that has a lot of feed or adequate feed. Everybody I talked to is short, and they’re talking selling 15, 20 per cent of their cow
herd if not the whole herd if nothing happens.” As one observer said, “You guys need to stand up and tell your story. And don’t be afraid because the political parties right now, they need to talk about this. They need to know whether an election or not, we have to talk about this now.” “Oh. It’s too late for that to happen. It’s got to happen now,” concluded Jonasson.
Meat Industries on Both Sides of the 49th Parallel Ask Governments for Help By Harry Siemens The battle between China and Canada continues at diplomatic levels and the Canadian Ag industry continues to feel the effects of this political dispute. Chris White, the President and CEO of the Canadian Meat Council, said the entire Canadian red meat sector is calling for government action to address China’s temporary suspension of pork and beef imports from Canada. The cost of China’s temporary suspension of Canadian pork and beef imports, imposed June 25 after Chinese Customs identified a shipment of non-Canadian pork exhibiting technical irregularities and fraudulently certified as Canadian with falsified documents. The cost to the Agricultural sector is approaching $100 million. The temporary suspension of pork comes at a time when the agricultural sectors, whether grain, pulses or beef, are suffering from lack of market access for products destined to be
sold into China. White said the longer the situation drags on, the higher the losses will be. When China eventually lifts the suspension, the more difficult it will be to regain market share lost to Canada’s competitors. “The immediate task is to assist the industry concerning compensation,” he said. “The reason the Chinese government gave to Canada for the suspension was owing to irregularities as a consequence of [CFIA], the Canadian Food Inspection Agency. It wasn’t because of anything wrong with the Canadian product, or anything Canadian companies did. They ask for compensation because it appears from an industry perspective the suspension resulted as action by the government.” White said the second thing is to assist, and the government is doing this, to help secure and identify other potential markets for Canadian products. “Thirdly if the suspension continues, are there other programs or remedies
within the government of Canada?” asked White. “For example, if there are job losses, what can government do to assist people in getting retraining or employment insurance if it’s a short term job loss,” he said. “There are other provisions the government has that they can provide some short term assistance to the industry. So the government is looking at what those options might be, and they’ll be making some recommendations to industry in terms of what they think they can do.” White said government and industry had established a working group to determine what compensation might look like and what’s needed to make intelligent recommendations. The sector is working to provide that data. Next is to look at the situation from the American side. The National Pork Producers Council (NPPC) said the latest increase in Chinese tariffs on US pork would further limit the ability of American pork producers to take ad-
With China imposing a 72 percent tariff on US pork, compared to 12 percent charged on pork from competing nations, it is significant. Photo by Harry Siemens
vantage of the opportunities created by declining Chinese pork production. Then some Canadians may ask what a tariff on US products has to do with the Canadian meat industry. Everything according to industry analysts because Canada exports product south and the American markets’ set the Canadian price. In response to the latest increase in US tariffs on imported products from China, China has further heightened import tariffs on US products. Maria Zieba, the Director of International Affairs for the NPPC, said American pork producers are already having a difficult time exporting into China. With China imposing a 72 percent tariff on US pork, compared to 12 percent charged on pork from competing nations, it is significant. “We need to have a deal as quickly as possible with the Chinese that eliminates all of these retaliatory tariffs and addresses those issues that limit our exports,” said Zieba. “That’s what we’re asking. We understand that this is a bigger issue that affects the rest of the US economy. But paying a 72 percent tariff, in the long run, will hurt our industry and now that African Swine Fever (ASF) has devastated the China pork industry.” She said with China, the largest pork producer and consumer of pork in the world that ASF killed a large part of their industry resulting in a tremendous opportunity for US pork. Unfortunately, because of high tariffs, that opportunity is going to American competitors instead. NPPC continues to urge the Trump administration to end the trade dispute with China.