The Losses in the Beef Sector in Canada From BSE

Abstract

The appearance of BSE in the Canadian beef herd brought immediate financial hardship to the industry due to the immediate closure of export outlets to Canadian beef, live animals and by-products. Nobody knew how long the border would stay closed and many worried that the Canadian beef industry could not survive a prolonged disruption of markets for beef. Previously, producers in Canada had enjoyed secure access to markets for beef around the world, with most of the exports destined for the United States, Mexico, Japan and South Korea. Both federal and provincial governments quickly developed assistance programs and, over the next two years, transferred about $2 billion to various sectors of the beef industry. Government subsidies certainly helped the beef sector but industry representatives argued that it did not cover nearly all the losses that had occurred. This is consistent with the results of this study.