(Alice McFarlane/northeastNOW Staff)

By Alice McFarlane

COVID-19

Stress on cattlemen and feedlots

Apr 16, 2020 | 12:30 PM

The cattle industry is continuing its calls for a program to deal with problems from reduced packing capacity.

Organizations like the Canadian Cattlemen’s Association (CCA) want the federal government establish a set-aside program similar to one established in 2004 during the BSE crisis when Canadian cattle exports were blocked or severely restricted.

CCA Director of Government and International Relations Fawn Jackson said it’s causing a financial strain on livestock producers and processors. She said it costs money to extend the feeding period of an animal.

“That’s why we need some government assistance at this time,” Jackson told a recent town hall event. “I would say the reason we are requesting urgent action on this is because we know from experience that the quicker that we react and the quicker we get stability within our market, the better off we’re going to be in the long term.”

Concerns were amplified earlier this week when the Cargill meat packing plant at High River, Alta. cut one shift after a number of employees tested positive for COVID-19. The company said it was in the best interest of their employees’ health.

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National Cattle Feeders Association President and CEO Janice Tranberg said the impact is already being felt at the feedlot level.

“They can probably manage for the next couple of weeks, but much past that, it’s going to be quite a bit of crisis. Hopefully, we can get the Cargill plant up and running very quickly again, but I think this is going to be a little bit more longer term as we need to slow lines down just to mitigate risk,” Tranberg said.

CCA Executive Director Dennis Laycraft said there’s not even an offer on cattle right now and once they get through the inventory in the plant they’ll start to work into the market.

“When you do that there’s some animals that are really market ready and need to be moved. How do we work through set asides and other procedures so you get those animals at that stage at the front of the line?” Laycraft said.

Canfax manager and senior analyst Brian Perrialt said more cows could be exported to the U.S. This would allow Cargill to focus on more fed slaughter in Canada while they’re on reduced kills.

Complicating the matter is some U.S. packing plants are also dealing with COVID-19.

The JBS Souderton facility in Pennsylvania is mourning the loss of a 70-year-old union steward. The Souderton plant accepted cattle from Ontario, which is also struggling with its own processing capacity issues. Another JBS plant in Greeley, Colorado will be closed until April 24.

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alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF