Local farmers stuck in China-Canada row
Ban on beef and pork exports could be felt here if dispute drags on
Niagara beef farmers are the latest victims in a high-stakes international showdown between China and Canada.
Earlier this week, China suspended imports of Canadian beef and pork after officials there reported finding residue from a restricted feed additive, ractopamine, in pork products imported from Canada.
They later found what they allege were forged veterinary documents related to that shipment.
Local farmers never saw it coming, said Jason Koudys, president of the Beef Farmers of Niagara. Before this week, he said, the way trade with China was growing “we were really excited.”
This year, Canadian beef exports to China were up nearly 400 per cent in the first three months compared to 2018, and “already in the first quarter that represented $48 million in sales.”
“It’s a growing market,” said Koudys.
“And with the new TransPacific Partnership and the Canada-Korea free trade agreement, that whole Asian area is getting more and more of our business.”
Now farmers find themselves waiting for updates from the Canadian Cattlemen’s Association. Based on what they’ve heard so far, he said, it sounds like a short-term issue.
“But we’ve seen other processes in the past that we thought were going to be short term but weren’t.”
Representatives for Niagara’s pork producers could not be reached for comment Thursday.
While beef sales this year have skyrocketed, a three-way dispute between China, Canada and the U.S. has loomed in the background.
Since December, Canada and China have been at odds over the arrest in Vancouver of Huawei executive Meng Wanzhou, who is being held awaiting extradition to the United States on fraud charges.
Canada is a third party in a diplomatic dispute between China and the U.S.
Koudys, who is also an advisory counsellor to the Beef Farmers of Ontario, said he understands China has its own reasons for banning Canadian pork products but wonders why beef exports were halted, too.
“I think China’s going to be quick to find any reason to hinder us right now,” he said.
He estimates there are more than 50 beef farmers across Niagara. He keeps about 50 mother cows at his Port Robinson property but said most farms in the region have 20 to 30 cows.
Those herds can grow to nearly 100 by the fall, including calves that could be shipped to the auction barns.
Depending on quality, he said, cattle are worth about $2,000 apiece, “so it’s a sizeable investment, but at the same time usually just a part-time investment.”
A spokesperson for the Canadian Meat Council predicted China’s ban would have a “huge” impact on the Canadian market because it would affect not only farmers but also packers and shippers here.
According to the Canadian Cattlemen’s Association, Canada is the world’s sixth-largest beef exporter, and 74 per cent of its beef exports go to the U.S., based on the most recent figures.
China and Southeast Asia, meanwhile, account for only one per cent of exports but, as Koudys noted, it’s a fast-growing market.