Daily News Update, Nov. 30, 2007

Canadian trade update

USDA’s final rule to amend the BSE minimal risk region rule (Minimal Risk Rule II, or MRRII) became effective last Monday, November 19, 2007.  This rule expands trade of cattle and beef products - including cattle 30 months of age or older – from Canada into the United States. 

At the end of last week, only 362 head of over-30-month cattle had been imported from Canada. “We could see the pace increase as ranchers become more familiar with the paperwork requirements, but the flow of cattle is still expected to be slow, “ said NCBA CEO Terry Stokes. “We have, however, seen an increase in feeder cattle imports from Canada during the last few months. But they were already coming regardless of whether or not Rule II took effect. This is due to the severe shortage of feedgrains north of the border, not the change in the import rule.” 

NCBA maintains that U.S. cattlemen will see long term benefits from the expanded trade with Canada.  “We are likely to see is an increase in our opportunity to export breeding cattle to Mexico in the very near future,” says NCBA Chief Economist Gregg Doud.  “Mexico’s policy on U.S. imports generally mirrors the U.S.-Canada relationship, so our ability to export breeding stock and beef from older cattle has been very limited.”