A Kelliher-area rancher says market disruptions like China’s latest suspension of Canadian meat imports will no doubt affect prices, which would come at a bad time considering many producers are dealing with the effects of a prolonged dry spell.
“Two weeks ago, we were in a severe weather challenge in this industry where people were selling their cows and that was going to affect the market considerably. One more nail in the coffin for some producers would be very serious,” Duane Thompson said Wednesday.
Thompson owns Tee Two Land and Cattle Co., a diversified farm operation. But with a herd that’s about 1,000 head, beef is a big part of his business.
China is Canada’s fifth-largest export market for beef, valued at more than $97 million per year. In Thompson’s view, losing access to that market is not ideal — but it’s not a knockout blow, either.
“The Canadian cattle industry has worked hard to have a diverse market base. Our recent Trans-Pacific Agreement where we have beef going to Japan and Korea and other markets really helps us,” he said.
“China is 2.6 per cent of total exports. Though this isn’t something we’d want, we certainly have other partners that want our products as well.”
The frustrating thing for Thompson is that Chinese customers want the products, saying producers always get warm welcomes during visits.
At this point, he is waiting on the federal government and the Canadian Food Inspection Agency to find a resolution.
“That team of experts, we have to leave it in their hands and hopefully we can come through it and keep the beef going to China,” he said.