Size of Industry

1. Size of Industry

2. Size of Industry

3. Size of Industry

4. Size of Industry

5. Size of Industry

6. Size of Industry • Cow numbers increased but are trending down again • Calf crop grew after May 2003 but is adjusting downward • Beef production has decreased from 2004/2005 levels

7. Beef and Cattle Exports

8. Beef and Cattle Exports

9. CBEF Beef Exports and Projections (Million $)

10. Beef Exports

11. Beef and Cattle Exports

12. Beef and Cattle Exports • Beef exports to Macau and Hong Kong have replaced Japan in importance • Beef exports to Mexico and U.S. remain strong • Cattle exports to U.S. remain strong • Loss of key markets such as South Korea means a loss of high value beef exports • The OIE has designated Canada as “controlled risk” for BSE – meaning that all beef products from Canada are safe for trade

13. Beef Imports (tonnes)

14. Access to Key MarketsU.S. • U.S. re-opened to UTM beef and cattle on July 14, 2005 • U.S. re-opened to cattle born after March 1, 1999 on November 19, 2007 • U.S. re-opened to OTM beef on November 19, 2007 • R-CALF continues to challenge in U.S. courts • Next hearing is on February 19, 2008

15. Access to Key MarketsMexico • Mexico is open to UTM beef • Negotiations continue to open Mexico to live cattle and OTM beef • Mexico has followed U.S. lead in past and should open to live cattle and OTM beef in 2008

16. Access to Key MarketsJapan • Japan is open top boneless beef from animals under twenty months of age • This product has proven difficult to supply • Japanese market demands high value cuts and is highly profitable • Australia has captured a very large share of the Japanese market • Negotiations continue to expand access but progress is slow

17. Access to Key MarketsSouth Korea • South Korea continues to ban all beef from Canada • South Korea was an important and profitable market before BSE • Negotiations with Korea are very difficult • U.S. has access for boneless UTM but it isn’t “real” • Some indications U.S. will get all UTM in 2008 – Canada as well? • Australia has captured a large share of the South Korean market

18. Access to Key MarketsTaiwan • Taiwan is open to boneless UTM from Canada • Canada requested full access for all beef in September 2007 • Taiwan has requested additional information and time to complete a risk assessment • Taiwan expects the process to go more quickly than it did for boneless UTM

19. Access to Key MarketsChina • China is closed to all cattle and beef products from Canada • Canada continues to press for full access but China rejects this • Negotiations are very slow and difficult • China has a fast-growing middle class and has great potential as an export market

20. Access to Key MarketsRussia • Canada has access for live cattle and shipments have been made • Canada has access for boneless UTM but Russia has approved only half of the plants Canada submitted • Russia has not issued permits to allow meat shipments from Canada • U.S. has access for all UTM

21. Access to Key MarketsMacau and Hong Kong • Canada has access for all UTM and OTM beef in Macau • Canada has access for boneless UTM in Hong Kong • Macau and Hong Kong are markets of growing importance and in 2006 were Canada’s 3rd and 4th most valuable export markets

22. Access to Key MarketsOther markets • Canada has access for all beef in Cuba, Barbados and Bermuda • Canada has boneless UTM access in many countries in the Caribbean and Central and South America • Canada has access to the EU for all beef but is limited to a quota for hormone-free beef • However, this is a lucrative market that some producers may wish to pursue

23. Access to Key Markets • Regaining access to key Asian markets continues to be challenging • Many countries are refusing to follow OIE guidelines in granting access • Alberta government continues to press the Federal government to aggressively negotiate for restored access

24. Access to Key Markets • Alberta government is working with industry (CCA, ABP, CBEF) to restore market access • Minister Groeneveld advocated for further market openings on his mission to Asia in October 2007 • Minister Groeneveld advocated for increased access to Mexico during his meeting with Mexico’s Ambassador to the U.S. in January 2008 • Alberta government is closely monitoring R-CALF’s continuing legal challenges • Work with Federal government and industry on legal submissions

25. WTO Negotiations • Negotiations for a new WTO agreement are ongoing • Agriculture is focused on 3 areas: • Agreement to eliminate export subsidies (by 2013?); world prices should increase • Domestic support (agreement on substantial reductions) • Market access (negotiations continue)

26. WTO Negotiations • An ambitious agreement has substantial potential for beef exports • A recent study by the George Morris Centre concluded that if tariff reductions “on the table” were applied to beef, exports would grow by 174,000 tonnes and $994 million • Alberta’s share would be $646 million

27. WTO Negotiations • Alberta continues to press the Federal government to negotiate for an ambitious deal at the WTO • A growing middle class in developing countries, such as China, will lead to increased global demand for beef • It is imperative that Alberta’s beef industry gains increased access to these growing markets