Voluntary Report - public distribution

**Date:** 3/26/2004

**GAIN Report Number:** CA4020

CA4020

**Canada**

**Agricultural Situation**

**This Week in Canadian Agriculture, Issue 11**

**2004**

**Approved by:**

![](media/image1.wmf)Gary C. Groves

U.S. Embassy

**Prepared by:**

George Myles

**Report Highlights:**

\* Cattle Industry Gets BSE Assistance Worth Up To C\$680 Million \*
Minister Speller Goes To Washington \* All B.C. Poultry Flocks In
High-Risk AI Region To Be Depopulated \* St. Lawrence Seaway Open \*
Exports Of Canadian Canola To Mexico Projected To Rise

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

This Week in Canadian Agriculture is a weekly review of Canadian
agricultural industry developments of interest to the U.S. agricultural
community. The issues summarized in this report cover a wide range of
subject matter obtained from Canadian press reports, government press
releases, and host country agricultural officials and representatives.

*Disclaimer*: Any press report summaries in this report are included to
bring U.S. readership closer to the pulse of Canadian developments in
agriculture. In no way do the views and opinions of these sources
reflect USDA's, the U.S. Embassy's, or any other U.S. Government
agency's point of view or official policy.

CATTLE INDUSTRY GETS BSE ASSISTANCE WORTH UP TO C\$680 MILLION: Canada
has announced a Transitional Industry Support Program to provide the
Canadian cattle industry up to C\$680 million to help offset the
economic losses resulting from BSE and related trade disruptions. The
funding will be delivered as a direct payment of up to C\$80 per
eligible bovine animal on inventory as of December 31, 2003. Eligible
animals include all bovine animals except mature bulls and cows (there
was a separate cull cow BSE-related assistance program). "This is the
single greatest financial support that the Canadian beef industry has
ever received," says Neil Jahnke , President of the Canadian Cattlemen's
Association. "The Federal Government has clearly recognized the depth
that this crisis has reached in rural communities across Canada. While
the assistance is being directed to beef cattle producers, it will also
benefit the rural communities in which those beef producers work and
live."

MINISTER SPELLER GOES TO WASHINGTON: Agriculture and Agri-Food Minister
Bob Speller met with Secretary Veneman this week in Washington over BSE
trade issues and the impact of BSE on both countries' beef and cattle
exports. On his return he told the Canadian cattle industry that Canada
and the U.S. have instituted many of the same measures to reduce the
risks posed by BSE. Both countries have long-standing feed bans and have
put in place measures to remove specified risk materials from all
animals at slaughter. And, both countries, as well as Mexico, continue
their efforts towards a resumption of exports based on a harmonized BSE
framework. *Comment: A major goal for Minister Speller is to realize a
fully reopened U.S. border for Canadian live cattle which has been
closed since May 2003. In 2002, the year prior to Canada's BSE incident,
more than 1.5 million Canadian live cattle (mostly slaughter cattle)
were exported to the United States.* The USDA reopened the comment
period in March 2004 on a rule that, if finalized, would result in the
resumption of imports of Canadian live cattle under 30 months of age.
Consideration will be given to comments received on or before April 7,
2004.

ALL B.C. POULTRY FLOCKS IN HIGH-RISK AI REGION TO BE DEPOPULATED: The
Canadian Food Inspection Agency (CFIA), will depopulate all remaining
flocks in the high-risk region of British Columbia\'s Fraser Valley. The
decision follows the detection of avian influenza on two more farms,
bringing the total number of infected premises in the high-risk region
to five. Approximately 275,000 birds will be destroyed and removed from
10 farms and 33 small flocks. All owners of birds depopulated will be
compensated under the Health of Animals Act. A number of countries
already have import restrictions on Canadian poultry (China, Japan,
South Korea, Hong Kong, Singapore and the Philippines). Of total
Canadian poultry and poultry meat exports during 2003 of \$100 million,
the Asia Pacific region accounted for about \$13 million. The major
share of Canadian live poultry and poultry meat exports in 2003 was to
the United States (\$70 million). Canada placed temporary import
restrictions on live poultry and poultry products from Texas on February
23, 2004 following the confirmation of highly pathogenic avian influenza
in the state (see CA4016).

ST. LAWRENCE SEAWAY OPEN: The St. Lawrence Seaway, which connects the
Great Lakes to the Atlantic Ocean, opened on March 23, when the Welland
Canal officially opened for its 175^th^ consecutive year of service. In
2003, about 40.87 million metric tons of cargo was shipped through the
seaway, down 1.3% from 2002 levels. A new marketing development director
was hired in January to seek new business. Agricultural products
represent about 40 percent of all Seaway trade. Grain shipped both by
the United States and Canada is primarily for export. Cargoes include
wheat, corn, soybeans, barley, oats, and flaxseed. The distance from the
Atlantic Ocean to Duluth, Minnesota on Lake Superior is 2,038 nautical
miles (2,342 statute miles or 3,700 kilometers), or 8.5 sailing days.

EXPORTS OF CANADIAN CANOLA TO MEXICO PROJECTED TO RISE: Delegates to the
Canola Council of Canada's Annual Convention held in Puerto Vallarta,
Mexico, March 21-23, 2004 were reportedly told by Amadeo Hallal,
Director General of the Mexican processors group Asociación Nacional de
Industriales de Aceites y Mantecas Comestibles (ANIAME) that Mexico will
import one million metric tons of canola from Canada in the 2003-04
Mexican crop year (Oct-Sept). *Comment: According to Agriculture and
Agri-Food Canada, Canada is the main supplier of canola to Mexico.
During October-September 2003 Canada exported 2.8 million metric tons of
low erucic acid canola (HS 12051020) valued at \$786 million. Japan was
the major destination at 1.6 million metric tons while Mexico was third
at 620,792 metric tons.*

**Find FAS on the World Wide Web:** Visit our headquarters' home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/) for a complete
listing of FAS' worldwide agricultural reporting.

Recent Reports from FAS/Ottawa:

+----------------+---------------------------------------+------------+
| Report Number  | Title of Report                       | Date       |
+----------------+---------------------------------------+------------+
| ## CA4019      | HRI Sector Report                     | 3/22/2004  |
+----------------+---------------------------------------+------------+
| ## CA4018      | This Week in Canadian Agriculture,    | 3/12/2004  |
|                | Issue 10                              |            |
+----------------+---------------------------------------+------------+
| ## CA4017      | Increased Access for U.S. Feeder      | 3/11/2004  |
|                | Cattle                                |            |
+----------------+---------------------------------------+------------+
| ## CA4016      | This Week in Canadian Agriculture,    | 3/5/2004   |
|                | Issue 9                               |            |
+----------------+---------------------------------------+------------+
| ## CA4015      | Affirmative Injury Ruling on U.S.     | 3/3/2004   |
|                | Pizza                                 |            |
+----------------+---------------------------------------+------------+
| ## CA4014      | This Week in Canadian Agriculture,    | 2/26/2004  |
|                | Issue 8                               |            |
+----------------+---------------------------------------+------------+
| ## CA4013      | Grain and Feed Annual Report          | 2/24/2004  |
+----------------+---------------------------------------+------------+

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