Farms.com Home   News

Red Meat Industry Seeks Government Action Over China Situation

4kodiak/iStock/Getty Images Plus photo
 
Ottawa, ON - The cost of the “temporary suspension” of Canadian pork and beef exports to China imposed on June 25 is approaching $100 million and the longer it continues, the greater the risk to Canadian jobs. As we enter the third month of suspension, the pork and beef sectors are calling on the Government to make clear their strategy to reopen the Chinese market and ensure we have more options for export diversification when such issues arise.
 
The suspension of product came on June 25th, triggered by China Customs discovering a shipment of non-Canadian pork exhibiting technical irregularities and fraudulently certified as Canadian with falsified documents. Canadian Food Inspection Agency (CFIA) has provided China Customs with all the information and analysis requested to demonstrate that the source of the infractions was not Canadian. CFIA has also assured China of the strong mechanisms in place in Canada to ensure compliance with all of China’s technical requirements.
 
Canadian pork and beef farmers and exporters have been patient and supported the Government’s efforts to find a resolution to the issue. However, as CFIA’s representations that Canada is a victim, not a culprit, have failed to resolve the matter, it becomes clear that bigger political issues are the true obstacles that the Canadian government must resolve.
 
We call on all parties ahead of the upcoming election to articulate how they see this file being resolved. The longer Canadian producers and exporters remain pawns in a political stand-off - the more the threat of job losses will be felt. The red meat sector represents 266,000 jobs from farm to fork.
 
We have been patient and respectful with the Government. But we are entering our third month out of China and as Chinese importers establish arrangements with alternate suppliers, it will be increasingly difficult for Canada to regain market share once the suspension is lifted. The financial investments made and commercial relations built to position Canadian meat in China are eroding daily and our global brand will be negatively impacted.
 
The industry also expects to have a meaningful discussion on building export resilience and compensation for the millions of dollars lost by the Canadian farmers and exporters who have been the victims of the suspension. The red meat sector has seen its highs and lows in this market over the years but China remains a key trading partner for Canada. Canada has high quality and safe meat to sell and we know Chinese consumers want and need it.
Source : CPC

Trending Video

Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.