TheMeatSite Newsletter - 12 September 2012

Welcome to this week's newsletter

Is Canada's Beef Industry Too Reliant on the US?

A new report challenges the Canadian beef industry to explore collaboration in the supply chain and develop a long-term plan, in order to tackle the issues facing the sector and take advantage of new opportunities.

The Canadian Agri-Food Policy Institute (CAPI) report highlights that the Canadian cattle industry is extremely reliant on one market, the US, which accounts for 85 per cent of Canada's beef and cattle trade. On a five year average (2007-2011), Canadian beef and cattle sales to the US were some $2.2 billion (and a combined total of $1.8 billion in 2011).

However, whilst Canada continues to supply the US market with live cattle and beef, the US is using to this to their benefit, focusing on alternative export markets.

Over the last eight years, beef imports from the US have risen, and Canada is supplying less beef to its own domestic market. Moreover, the average value of these imports ($6.55 per kg) exceeds the average value of our US-bound exports ($3.74 per kg). This imbalance is indicative of the fact that Canada is generally importing more higher cuts (muscle cuts) from the US than it is exporting (trim and grinding beef).

Is Canada missing a bigger economic opportunity to better serve its own domestic market?

US beef exports beyond Canada are up 280 per cent on a value basis since 2005; whereas Canadian exports beyond the US are up 45 per cent. Since 2002, Canada's exports to international markets other than the US were down 3.5 per cent while the US beef industry increased exports to the international market by 51 per cent (excluding shipments to Canada).

The report recognises the Government's "admirable" job of opening new foreign markets, however says the beef industry is not doing enough to capture new sales, enhanced prices and greater margins.

At the moment, the industry is not in a position to take advantage of trade decisions.

This study points out in clear terms that the industry is not achieving its full potential.

A strategy is urgently needed to link the players, policies and resources in order to help the sector ensure its place, domestically and internationally, as a reliable supplier of high quality Canadian products.

This Week's Feature Articles

We have 6 new features this week:

Long-Term Strategy Needed for Canadian Beef Market
A new study released by CAPI, the Canadian Agri-Food Policy Institute, indicates that Canada's beef industry is at a profound tipping point and corrective action is needed if it is going to deliver maximum benefits to producers and industry stakeholders and deliver on its potential of being a reliable contributor to a protein hungry world.

Selling Sustainability? In Search of the Retail Business Case for Sustainable Diets
This report presents the results of a research exercise commissioned by WWF and conducted by Brook Lyndhurst during the latter part of 2011 and early part of 2012. The research was designed to investigate the business case for retailers to further support and promote sustainable diets.

Animal Welfare and its Effects on Carcase and Meat Quality
Several initiatives, including research and development, increasing stakeholders' awareness and application of legislation and recommendation, have been carried out in Latin America to promote animal welfare and meat quality.

Overview of Salmonella in Livestock and People
Summary of the 2011 edition of 'Salmonella in Livestock Production in GB', an annual publication from the Veterinary Laboratories Agency, providing data on salmonella reports from livestock species in Great Britain (England, Wales and Scotland).

Re-emergence of Brucellosis in Cattle in France and Risk for Human Health
Researchers report on the investigation into a single case of human brucellosis diagnosed in France in January 2012. The source of infection was identified as unpasteurised cheese from a neighbouring farm but the source of the bacteria is still under investigation.

Brazil: Competitive Factors in Brazil Affecting US and Brazilian Agricultural Sales in Selected Third Country Markets
The importance of the poultry, beef and pig meat sectors to teh Brazilian economy are shown in a new report from the United States International Trade Commission (USITC).