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Sheep producers hit hard
August
23, 2004
GUELPH, ONTARIO – August 18, 2004 –Net cash receipts are down
42 per cent for Canadian sheep producers for the first quarter of 2004,
reports Statistics Canada.
While the first quarter net cash receipts in 2004 for all livestock groups
are down by about 12 per cent when compared to 2003, losses of net cash
receipts for sheep producers are greater than any other commodity. This
decrease in income can be directly linked to the US border closure related
to bovine spongiform encephalopathy (BSE). Prior to the border closure
sheep producers exported a significant portion of their annual production
to the US. Exclusion from the US market has resulted in lambs normally
exported flooding the Canadian market, driving prices down.
"The situation is quite desperate for Canadian sheep producers"
says Randy Eros, chair of the Canadian Sheep Federation, adding that all
sheep producers are feeling the impact of the BSE crisis and many feel
that the industry has been overlooked.
This situation is compounded by lack of adequate slaughter capacity in
Canada for lamb which limits producers’ ability to market domestically.
Provincial marketing agencies have substantially increased their marketing
efforts to try to clear the backlog of lambs. However, continued competition
from imported New Zealand lamb is also compounding the problem.
The Canadian Sheep Federation continues to work on behalf of producers
to alleviate some of the problems caused by the US border closure.
The Canadian Sheep Federation is a national, non-profit organization that
represents all Canadian sheep producers. Its mission is further the viability,
expansion and prosperity of the Canadian sheep and wool industry.
For more information contact the Canadian Sheep Federation at 1-888-684-7739
or cansheep@cansheep.ca.
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