A major dispute between Canada and the United States over meat-labeling rules is crushing the meat-export industry in Saskatchewan.
That's the message provincial agriculture minister Lyle Stewart delivered ahead of a recent major conference in Chicago.
"This has been a priority for our government since this issue first arose years ago and we are extremely disappointed the U.S. federal government refuses to change their position on COOL, which is clearly a violation of their trade obligations," Stewart said in a statement.
Country of Origin Labeling (COOL) has been in place in the U.S. since 2008, but was altered in May after the World Trade Organization (WTO) found the original rules to be in violation of global trade laws.
The new regulations require meat producers to label their products with information including where the animal was born, where it was slaughtered and where the meat was packed. Supporters have argued the labeling helps consumers make more informed choices about what they eat, but there have been severe consequences in Canada and Saskatchewan.
The high costs associated with labeling and segregating cattle from different countries were a major reason why Tyson Foods, a major U.S. food processor, announced last month it would no longer be buying slaughtered cattle from Canada.
According to Mark Elford, chairman of the Saskatchewan Cattlemen's Association, COOL was costing Canadian beef producers up to $600 million a year, and that was before the decision by Tyson.
Elford estimated that about 40 per cent of Saskatchewan beef exports go to the U.S., though that number is likely to drop the longer the COOL controversy drags on.
"It is protectionism," Elford said. "That's why we went to the WTO. It's not right, it's not fair, it violates our agreements."
There's no doubt that the issue is keeping farmers up at night all across Saskatchewan and in the Humboldt region.
"I went to a lot of meetings this fall and everywhere people are asking about COOL and asking if there's going to be resolution," Elford said. "It'd be nice to give them good news but I can't."
From the perspective of a meat processor in the U.S., COOL makes buying Canadian meat comparatively more expensive than buying American. Cattle raised in places like Montana are in many cases identical to cattle raised in Saskatchewan, so price is often the determining factor.
Compounding the issue for Saskatchewan producers is the lack of alternative markets for their beef and pork. With abundant land and superb conditions for raising cattle, Canada produces a surplus of meat that has to be exported. Without the U.S., that search goes abroad.
Elford said the recent announcement of a free trade pact between Canada and the European Union could mean as many as one million cattle being exported to Europe in the future.
Still, that's not nearly enough to replace the losses coming from south of the border. Taking action through the WTO can take years to resolve, meaning Saskatchewan cattle and pig farmers might be in for an uncertain future.
