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The American Border Closure and the Sheep Industry
Written
by Randy Eros. - September 1, 2003
The
impact of the US border closure has started to hit home over the last
month. The western feedlot buyers are not filling their lots and this
has prairie producers very concerned about finding markets for their lambs.
The lambs that are already at a Canadian finished weight are starting
to find their way into the Eastern Canadian market and the prices there
are tumbling, especially for lambs over 95lbs.
The slaughter lamb compensation program has offered some assistance in
markets where lambs go direct to slaughter. It however finished at the
end of August with word from the Federal Minister of Agriculture that
their will be no extension or new national program. The CSF will continue
to lobby Mr. Vanclief office on behalf of producers but provincial organizations
will need to work with their governments to try and develop industry support
programs. Producers in the western provinces will need to develop alternate
marketing options or be prepared to background lambs until feedlots buyers
become active again. Hopes that the border would open for lambs early
this fall have not been realized.
The border is closed from the American side and it will require a push
from Americans to ensure that the live lamb trade resumes. As part of
our continuing efforts to open the border the CSF has started an active
lobbying campaign with American sheep producers and their organizations.
There is a light at the end of the tunnel. The CSF board held a conference
call with staff from the CFIA, the Trade Office of Agriculture Canada
and the Canadian embassy in Washington. The USDA is planning to start
the process for opening the border for live animals destined for immediate
slaughter. This is not a speedy process and includes time for public comment
and then a review and summary period followed by the writing of the new
rules for importation. If the USDA gets started on this process in early
September, the earliest we could expect trade to resume would be in late
December or early in the New Year.
Producers need to be aware that there may be an age restriction on lambs
headed to the US after the border reopens. We won’t know for sure
until the process starts but we are expecting that initially the market
will be restricted to animals less then 12 months of age.
Managing your flock and marketing your lamb crop can be a real challenge
at the best of times. This year especially producers will want to review
all of their options carefully before deciding how best
to move lambs to market.
Randy Eros
Chair,
Canadian Sheep Federation
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