Beef is a big export item for both Canada and the U.S. This can put trade and transportation concerns front and center in a producer’s mind when it’s time to trade cattle or beef on both sides of the border.
In Canada, 359,600 metric tons (792.78 million pounds) of beef is exported from the country per year, as of 2016. Of that, 116,266 metric tons (256.32 million pounds) of it goes to the U.S. Canada also exports beef to China, Hong Kong, Japan, Mexico and South Korea.
The U.S. exports beef to countries such as Mexico, Japan, South Korea, and Hong Kong in addition to Canada, its fifth largest beef export destination by value in 2017. From 2011-2014, over $1 billion (USD) worth of beef and variety meats was exported from the U.S. to Canada. Last year, total beef exports to Canada was valued at $796 million, according to U.S. Meat Export Federation data.
NAFTA uncertainty
This huge business between the borders could be in peril. It depends on the outcome of current North American Free Trade Agreement (NAFTA) talks.
It is clear from industry speculation and commentary that many in the cattle industry did not expect the talks to enter more than five rounds of negotiations thus far. All industries involved with NAFTA are feeling the tug of uncertainty—the beef industry, perhaps, more than others.
NAFTA has been in effect since January 1994 and regulates the trade of goods and services between Canada, the U.S., and Mexico. Until the talks are finished and all parties agree, NAFTA in its current form remains in effect. If the policies of NAFTA change, it could affect future beef trade between Canada, the U.S., and Mexico in a number of ways in the future.
Changes to the agreement may mean a decrease in import/export of beef between the countries. In the U.S., if NAFTA changes or no agreement is in place, exports of U.S. beef may drop dramatically in proportion to tariff prices. In other words, it may cost too much to import Canadian beef to America. When exporting American beef to Canada the price could also prove too high.
For Canada, the hardest hit industry would be beef ranching. One option for producers, should tariffs on beef return to previous high percentages, is early retirement. Executive member of the Canadian Cattleman’s Association, John Masswohl, forecasts a potential mass-liquidation of Canadian beef. An older rancher may simply decide to retire and sell off the farm, he suggests. While many find it a rewarding career, there is a lot that goes into raising and breeding cattle.
Trucking, translation, and treatment
In addition to beef trade between Canada and the U.S. is considerable live cattle trade. For instance, in 2017, 642,537 head of Canadian cattle were shipped south to the U.S., according to USDA records. That same year, 145,284 head of U.S. cattle went north.
How do you get almost 800,000 head of live cattle from the farmer’s ranch to their final destination? It takes an incredible amount of logistics and planning. Cross-border transportation involves veterinary checks and “sealing” the cargo, only to be opened at approved rest stops by an authorized veterinarian.
Andrea Marks, chief operations officer of Hershberger Livestock, LLC & Marks Land and Livestock, LLC knows a bit about getting cattle from point A to B.
“They will need to have an l International U.S. Origin Health Certificate (IHC) issued by a U.S. Department of Agriculture (USDA)-accredited veterinarian (AV) and endorsed by a Veterinary Services (VS) veterinarian. It can be a challenge for transportation companies going from one country to another—from the U.S. to Canada, for instance, because of things such as disparity in allowed hours of driving time,” says Marks.
Another tricky matter is conversions; miles to kilometers, feet to meters, and pounds to kilograms. Crossing into Canada or the U.S. requires a change of basic measurements. Transporters must do calculations not seen in national cattle transportation.
Says Marks: “Many drivers are finding the conversion challenging between the U.S and Canada when using an [electronic logging device] so many drivers log out of their ELD and use paper when traveling in Canada.”
Ranchers, producers, exporters, and end-sales companies must make special preparations when it comes to treatment of their cargo. Cattle ranchers keep in mind the main ways in which cattle can be injured or unduly stressed. Care is taken to avoid stress, bruising, trampling on slippery floors, bloat from restraining cattle, dehydration, exhaustion, broken legs or horns, and in-travel fighting.
In Canada, the main agency which monitors cattle conditions is the Canadian Food Inspection Agency. The main regulation states that, nationally, cattle may be transported for up to 48 hours without food or water. It is covered under the Health of Animals Regulations. Cattle must receive feed and water within five hours prior to loading if transport will exceed 24 hours. Provincially, regulations may also vary. Producer advocacy groups such as the Canadian Cattleman Association suggest transportation of no longer than 40 hours for cattle, depending on age and condition.
In the U.S., the “28-Hour Law” applies. It stipulates that livestock transported for 28 consecutive hours must be given a five-hour rest period. This provides for food, water, and time off the truck. This dates back to 1905 when most animals were transported by rail. Thirty-three states have additional, specific regulations which must also be followed.
The similarities between regulatory policies between Canada and the U.S. overall outweigh some of the differences. Both countries seek to promote optimal conditions for livestock and clarify things like the health of an animal and age before transportation is advised. There are guidelines regarding physical condition, resting and feeding times, and more. In conjunction with humane societies and animal advocacy groups, best policies and guidelines are in place to protect the livestock during transportation.
While political talks and trade deals make the future of that transportation route uncertain, for now the ranchers will ensure that the beef trucks keep on rolling to their final destination—whatever country that may be. — Yvonne Dick, WLJ Canadian correspondent
“One option for Canadian producers, should tariffs on beef return to previous high percentages, is early retirement.”
