Will initiatives like verified sustainable beef and BIXS have value if Canadian cattle just get shipped south?
The lower dollar is likely to see more feeder and slaughter cattle end their days on American soil and an overreliance on the U.S. market isn’t a good thing, say industry officials.
But current efforts to build the Canadian beef brand is worth the effort, they are quick to add.
“We’re not a huge beef-producing nation in the whole scheme of things,” said Brian Perillat, senior analyst and manager with CanFax.
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“There will be increased demand for the entire industry, and longer term, that will pay some dividends.”
Sustainability isn’t a fad and it’s good that Canada is at the forefront on that score, he added.
“This is really positive and it seems to be a growing trend in today’s marketplace,” said Perillat.
And although more than a million head of Canadian cattle were exported last year, there was also a jump in beef exports.
The latest stats (covering the first 11 months of 2014) saw a 14 per cent increase in sales by weight to just under 293,000 tonnes, according to Statistics Canada data.
The lion’s share — 204,000 tonnes — went to the U.S., followed by Hong Kong (24,000 tonnes), Mexico (22,000 tonnes), Japan (17,000 tonnes), and China (6,500 tonnes).
Our next-door neighbour will always be our largest market for both cattle and beef, but the Canadian beef sector is working hard to sell into other markets, said Fred Hays, policy analyst with Alberta Beef Producers.
“The market for China is increasing, but it’s overshadowed by the U.S. market,” said Hays.
South Korea is also a promising market, and sales to that nation more than doubled (to 2,700 tonnes) last year, he noted.
Leveraging traceability and the Verified Beef Production program is a good way to tap into premium markets, said Hays. That may not directly translate into more dollars for cow-calf producers, but it is good for the overall sector, while a revamped Beef InfoXchange System holds the promise of boosting efficiencies and margins at the ranch level, he said.
These types of programs will also help to bolster the Canadian consumer’s positive perceptions of the beef industry and help the industry gain the support of the Canadian public, said Rich Smith, executive director of Alberta Beef Producers.
“We need consumers to purchase the product, but we also need the support of the public for us to continue operating in this country,” he said.
They also help to convince consumers that they’re getting good value when they buy beef, even as it rises in cost, said Hays.
“Packers are concerned about that, and the beef industry is concerned about this, because a cheaper product like poultry or pork can come in,” he said.
