BSE compensation is welcome news to beef producers

News Release
FOR IMMEDIATE RELEASE
June 19, 2003

OTTAWA – Yesterday’s announcement of up to $460 million in federal/provincial support to the cattle industry is positive news for beef producers, says the Canadian Federation of Agriculture. The industry has been at a virtual standstill since international borders closed after the discovery of a single case of bovine spongiform encephalopathy (BSE). The government assistance will provide desperately needed help to keep operations afloat while work continues to regain access to world markets.

“This is encouraging news for beef producers across Canada,” said CFA President Bob Friesen. “CFA acknowledges the government for recognizing industry needs and taking action to assist one of the country’s most important sectors. Another key factor is the effect that the crisis has had on producers of other ruminant livestock."

CFA is also pleased with the Minster’s indication that the BSE package is separate from implementation of the Agriculture Policy Framework (APF), which has not yet been agreed to by all provinces. Farm groups have reservations with the Business Risk Management component of the APF and feel the programs require further discussion before they can be introduced to producers.

CFA asks governments to maintain maximum efforts to get the international borders open. With lost export revenue estimated at $11 million per day, CFA agrees with the governments’ stance that future assessment is required in order to secure stabilization of the beef industry. According to a recent study by Serecon Management Consulting, the Canadian beef sector may incur costs of $2.5 billion if border closures were to last four months.

“In the meantime, farmers appreciate the government's clear communication approach on this issue and will continue watching closely for any updates on the border situation. There are grave concerns that grow deeper as each day passes,” said Friesen. "Governments need to maintain the Canadian livestock industry through this difficult time, recognizing it already competes with U.S.-subsidized grain. The overall benefit of this package will depend on its immediate accessibility and how it lasts throughout the trade disruption."

-30-

Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

Contact:

Kieran Green, CFA Communications Coordinator, (613) 236-3633, info@cfafca.ca

Bob Friesen, CFA President, (204) 724-0824 (cell)

Brigid Rivoire, CFA Executive Director, (613) 236-3633 / (613) 715-3113 (cell)