Legitimate beefs

The night the U.S. shut down the border to Canadian beef exports because one cow in Alberta had mad cow disease, I turned on a national newscast to get some perspective on what this means for our cattle industry. An economist was assuring Canadians that, unlike auto parts in Southern Ontario, the beef industry is too small a percentage of our GDP to have much of an effect on the overall economy. In other words, “Don’t worry, be happy, and now back to SARS.”

I couldn’t help thinking of all those farmers watching truckloads of cattle spill back onto their farms. Of carriers and owner-operators scrambling for other hauls or parking trucks. Of drivers having their sandwiches confiscated at the border.

While many exporters and truckers face market hurdles today-from fuel, security, and insurance costs to a volatile exchange rate-those in the West also live with 12-per-cent tariffs on softwood lumber and wheat. Now this.

It’s about time Western issues were brought to the top of the national agenda.

One solution is eloquent, but relentless diplomacy, which is something we’re not getting from the federal government these days.

Ottawa routinely ignores issues of financial assistance for markets in the West, and the mad cow crisis is no different. The Feds wasted no time kicking in $17.5 million to promote a Toronto tourism industry hurt by SARS, as well as eliminated the two-week waiting period for laid-off workers to receive unemployment benefits. News reports state that a $150-million Human Resources Development SARS relief package is on the horizon.

I’m not insensitive to those affected by SARS, but the financial hit taken by the cattle industry far outweighs the damage of SARS to Toronto tourism. The Conference Board of Canada estimates that the tourism industry will lose $350 million due to SARS this year, and non-tourism related retail sales will suffer by another $380 million.

But Canada beef exports-worth $4 billion a year-are suffering to the tune of up to $28 million lost each day, with the potential for permanent lost market share even if the border reopens soon. At press time, the Feds were considering a joint financial plan with the provinces and loan guarantees. The actual numbers weren’t available, but I bet they’re nowhere near the $400 million the four Western provinces say they need just to keep the cattle industry above water.

Does a double standard exist? When I consider the National Energy Program, Kyoto, wheat export restrictions, and the government’s initial reluctance to provide aid on mad cow, it’s hard to say no.
Jim Freisen, Saskatchewan Trucking Association manager, agrees unapologetically. “Frankly, our expectations on Ottawa are not high when it comes to Western issues,” he says. “Most of the federal government thinks we’re on another planet.”

As with the West’s other major markets, the beef industry will find a way to adapt and eventually recover, Freisen promises. Here’s hoping industry and government on both sides of the 49th do their part to make the process as easy as possible. s

Marco Beghetto is the associate editor of
Today’s Trucking. He can be reached at
416/614-5821, or marco@todaystrucking.com.