Stay informed with the LNN Daily Newsletter
Feed Lot -- LNN

Beef producer groups seek help stabilizing beef supply chain

Apr 15, 2020 | 4:45 PM

CALGARY, AB. — Several cattle industry groups are looking to federal and provincial governments for measures similar to those that helped ranchers during the mad cow disease crisis in the early 2000’s. They want the measures brought back immediately, as the pandemic slows down work at packing plants.

Alberta Beef Producers Chair, Kelly Smith-Fraser, states, “North American beef processing capacity has been reduced at a number of plants, due to changes related to COVID-19, including the Cargill High River facility, which temporarily reduced shifts this week.”

“We have seen smaller reductions at other plants due to implementation of safety measures to protect workers. The reductions create challenges for beef producers and may have impacts on the availability of beef for consumers, if they continue for a prolonged period of time.”

Smith-Fraser notes Alberta Beef Producers (ABP) and the Canadian Cattlemen’s Association (CCA) have recommended the federal government develop a frame work for a set-aside program, to be implemented if a critical situation disrupts the beef supply chain.

A federally co-ordinated “set-aside” program would enable producers to keep their animals longer, as it would involve feeding cattle a maintenance diet, instead of the more nutrient-dense growth diet they would normally eat ahead of slaughter.

According to Smith-Fraser, current reductions in processing capacity, have put the industry in a critical situation and she is urging governments to implement the set-aside program, to slow the flow of cattle to processing.

“This will help stabilize markets and establish a better balance between supplies of cattle and processing capacity. We are also looking for reduced numbers of cull cows going to plant, so facilities can focus on fed cattle.”

“We encourage provincial and federal governments to deem COVID-19 a natural disaster and trigger Agri-stability funding to assist producers who are facing extraordinary financial hardships. We’re also seeking government assistance to offset the high cost of premiums for Western Livestock Price Insurance program, caused by extreme market volatility.”

Fawn Jackson, the CCA’s director of government and international affairs, says the association supports a plan to slow down the supply chain, as meat processors across North America have suspended or slowed their operations, because of the pandemic. Of major concern in Southern Alberta, is the slow-down at the Cargill plant at High River.

On Wednesday (Apr 15), Alberta Chief Medical Officer of Health, Dr. Deena Hinshaw, confirmed a Dedicated Assessment Centre for COVID-19 would be set up at the High River plant, to increase testing. She underscored that the testing is for COVID-19 and not for food-borne illnesses.

Alberta Agriculture Minister Devin Dreeshen says his department has been working with Alberta Health Services, the Labour Ministry and the Canadian Food Inspection Agency to ensure food processors continue to operate or can resume as quickly as possible.