URGENT

Honourable Pat Bell 
June 8, 2008
Minister of Agriculture and Lands
Parliament Buildings
Victoria, B. C.

Dear Minister Bell

                The Alberta Minister of Agriculture, George Groeneveld, recently unveiled  a long-term strategy and investment of $356 Million to stabilize and strengthen Alberta's livestock industry.  This stability and strength of the Alberta industry will come at the expense of the stability and strength of the BC cattle industry.  Mr. Groeneveld is quoted in his announcement, "Alberta's livestock industry is facing significant challenges and needs a major and fundamental change. Albertans want a competitive and sustainable livestock industry, but this will not happen unless we start doing things radically different.  The industry needs to regain its competitive advantage and although these changes will not be easy, they are necessary."  British Columbia's cattle industry has identical needs and should have similar goals.

This plan, AFRP II, will have a devastating effect on the feeding, back-grounding and processing sectors of the cattle industry in BC.  The plan will create a competitive disadvantage of $100 per head for BC  Feeders for the next two years on top of last years loss of over $100 per head as the result of Alberta's AFRP.  Although there will be some trickle down effect of the Alberta payments to the cow calf producers, it will mainly be to those who sell immediately upon weaning.  Those who retain ownership beyond weaning, either to back-grounders or to finish, will not reap significant benefits from the Alberta program.  Ranchers must be encouraged to add value to their calves by pre-conditioning and retaining longer ownership.  If not it will eventually lead to the demise of the rest of the cattle industry in BC.

BC needs to follow Alberta's lead and create a Livestock and Meat Agency to support the industry with a focus on directing funds, resources and programs toward strategic priorities to develop a sustainable and viable industry.  An additional $30 million (the per head equivalent of Alberta's investment subsidy) is needed for investing in a gate to plate program.  A tax on retail meat sales through food service outlets, of $.30 per pound could be charged by the agency to perpetuate the fund.  This is the estimated equivalent of the 12.8 cent Alberta subsidy in retail meat yield.  Any beef that was born, raised and slaughtered in BC would be exempt and could apply for a rebate.  This would encourage local production and reduce the carbon footprint of the industry by the savings in fuel.  It is unfortunate that our slaughter industry in BC has already been demolished by the subsidized Alberta plants.  Until BC satisfactorily addresses  the SRM and waste disposal issue, it is unlikely that it will rebuild.

The BC Association of Cattle Feeders urges you not to allow this balkanization of the cattle industry in Canada to continue.  The BC cattle feeders first lost to Alberta when the Alberta Government announced the Crow Offset on feed grains used in Alberta, which gave the Alberta feeders a $22 per ton advantage on the cost of feed grains.  BC got nothing, then Alberta  offered huge incentives for the packing industry to locate in Alberta,  BC got nothing, and then were undercut by these packers trying to establish market share. Alberta topped up the national BSE Recovery Plan, BC got nothing extra and then had to compete with Alberta feeders flush with cash that fall.  October 2007, the Alberta Minister of Agriculture announced Alberta Farm Recovery Plan (ARFP) which compensated the feeders in Alberta by 18 cents per pound of gain.  What did BC do?  They did not even acknowledge the letter we sent them, requesting that they cost share with the federal government and make it a national program.  BC investors and feeders, who owned cattle in BC last winter, lost over $100 per head, the same as the Albertans, but the Albertans were compensated for their loss by the Alberta government.  Now, a further plan to inject cash into the cattle industry in Alberta, AFRP II, is announced.  Is the BC government going to invest similar funds into the cattle industry in BC to help it survive?  If not, then let the BC ranchers subdivide their land and bring in the bulldozers.  How do you think that might affect BC's greenhouse gas emissions? 

The cattle industry in BC needs a commitment, now, as yearling cattle will soon be coming to market.  The ranchers and investors, who have owned these cattle in the past, will be forced to sell their cattle, because of economic reality, to subsidized Alberta feeders.  Once lost, those investments will never return to British Columbia. We need to restore the equity and confidence in the industry immediately.  Now the Alberta Government, with their massive support program, enhancing the competitive advantage of the Alberta cattle producers, makes the cattle industry in BC redundant and non-viable.  How does this correlate with the BC Beef Industry Development Strategy?  The $3.3 million that was given to the BCCA with no strings attached does nothing to enhance the industry.   It is only one tenth of the Alberta investment and the BCCA has not approached the industry as how it should be distributed for the benefit of the whole industry.  We need a focused investment from the government that will create a business environment which will encourage further private investment to sustain the livestock industry in BC. 

I am hoping we can meet with you and your advisors in the very near future to discuss what can be done to salvage the remains of the cattle industry in British Columbia.  Please call me (250 498-3077) to discuss this and arrange a meeting or e-mail me at freding@telus.net.

Yours truly,

Bill Freding
President