Country of Original Labeling has been on hold by the U.S. Administration and that may be good or bad news for Canadian cattlemen. As the Obama Administration took office, the announcement came that the new President will delay all pending and last minute regulations of the Bush Administration, which would include COOL regulations that are a part of the 2008 Farm Bill.
A review of the legislation could be good news, but it could also mean that the regulations will require all retailers who sell meat, fish, nuts and produce properly label where the item was produced or grown.
In early January, Canadian officials welcomed the USDA’s unveiling of the final rules for labeling and said that they would continue to monitor the situation and raise the issue under the WTO.
Last summer both Canada and Mexico asked for WTO consultations on the COOL requirements. Agriculture Minister Gerry Ritz says that changes in the final regulations confirm that the Canadian Government’s actions will have an impact with expanded access to business opportunities.
That may not be the situation after another review of the COOL regulations by the new administration.
The regulations unveiled January 12 were expected to go into effect in March, however, following the latest release the Canadian Government has temporarily suspended its trade complaint at the WTO.
Both the Canadian Cattlemen’s Association and the Manitoba Cattle Producers Association have been pleased with the improved flexibility of the regulators but remain opposed to mandatory COOL initiatives.
A decline in cow numbers on both sides of the border may be a bright spot for those that choose to stay in the business.
Anne Dunford of Gateway Livestock Exchange told the Saskatchewan Cattle Feeders Association that the Canadian beef cow herd is at 4.63 million which is the lowest since 2001. Cows have been going to market at a brisk pace and retention of replacement heifers is low, as many producers exit the business or reduce their herds. In the U.S. cow numbers are at their lowest since 1963.
Dunford also cites low pork and poultry supplies as good news for beef, but she says it is not only the supply side of the equation that affects the market the current economic situation in both countries could also have a negative effect on demand.
