SRMs cause more beef grief

Since July 12, the beef industry has been scrambling to keep the Canadian government’s international commitment to ban on specified risk materials (SRM) from animal feeds, pet foods and fertilizers, says Paul Stiles, assistant general manager of the Ontario Cattlemen’s Association (OCA). Stiles says that packers in the United States don’t face these costs because the U.S. doesn’t ban SRMs.

Although the federal and provincial governments have kicked in funding to help, the short-term picture is “not pretty,” says Dave Tiller, technical director of the Ontario Independent Meat Producers.

Only one renderer in Ontario has a special SRM license – Atwood Pet Food Limited, near Listowel. Atwood can’t process the additional 25 to 30 tonnes a day of SRMs sent its way and ships a substantial portion to Laflèche Environmental Inc. in eastern Ontario, the only provincial landfill site permitted to accept SRMs. Dumping costs $20 to $30 per tonne over and above the dump’s regular $65 fee.

Atwood charges $150 per tonne to cover dumping fees and trucking to the dump, and a further $10 to unload and “put up with the aggravation,” says owner Dave Smith. An expansion should be finished by the end of the year. Further improvements in 2008 will lower prices, he says.

Only one transporter is licensed to transport SRMs. Another license is pending. Abattoirs can expect to pay $350 for a stop charge plus about $80 per tonne. An alternative is to compost or incinerate materials on site.

On top of disposal costs, abattoirs must separate this material, requiring extra space, more labour and added paperwork.

What does this mean for the producer? Leamington-based Gord’s Abattoir Ltd. added $20 a head to its kill fee. Norwich Packers of Oxford County quit custom killing of animals over 30 months of age.

Gord Hardy, vice-president of the OCA suspects the ban has also affected market prices. He says that rail prices – what farmers get for hanging dressed beef, after skinning and offal is removed – fell 30 cents a pound between July and October. He admits that the stronger Canadian dollar may have affected prices as well. BF