by SUSAN MANN
The Canadian dairy industry has scored a major coup in Asia after federal Agriculture Minister Gerry Ritz announced yesterday Vietnam’s largest dairy plant is negotiating a deal to buy 10,000 Canadian cattle next year.
The deal with TH Milk represents the single biggest order of Canadian dairy cattle to Asia and could be worth up to an additional $20 million for Canadian dairy farmers, he told reporters during a telephone press conference from Indonesia. He was in the region drumming up trade in Vietnam and attending the World Trade Organization (WTO) ministerial meetings in Bali.
The deal would include technical support. The order is the result of ongoing market development in Vietnam by the Canadian Livestock Genetics Association and the Canadian government.
“I also mentioned that our animal feed industry will work with Vietnam to develop optimal feed products for their local herds,” Ritz explains.
Canada’s agriculture, food and seafood trade with Vietnam has more than doubled during the past two years to $152 million. Canada’s largest export to Vietnam is seafood, followed by soybeans, meat, canola and beef hides. There’s room for growth, Ritz notes. “A large population and improving incomes in Vietnam are expected to lead to higher levels of consumption, particularly of proteins led by meat.”
The bump in Vietnamese consumption of meat is also generating an increase in demand for animal feed due to their growing livestock industry.
About the WTO meetings, Ritz says for the past 12 years Canada and other WTO member countries have worked hard to complete negotiations under the Doha development round. International Trade Minister Minster Ed Fast and Ritz went to Indonesia “with a clear commitment of agreeing on a package of measures that would allow breaking the current impasse in these Doha negotiations by addressing a number of key issues of key interest to many countries around the globe,” such as trade facilitation, food security, import quota administration and export subsidies.
But the member countries hadn’t yet reached a compromise by the time Ritz was holding his press conference late Thursday afternoon. “A number of countries, led by India, continue to argue they need to be provided more flexibility with respect to the amount of support they can pay to their farmers to ensure their food security.” BF
Comments
One would assume these to be bred heifers? Good deal, maybe forces the American buyers coming up here to pay a little more.
Do Canadian producers have to pay 300+ % export tariffs on the animals they ship? :)
:0
Only in Canada would politicians pander to farmers by boasting about exporting cows which produce milk which we, in turn, refuse to import.
Stephen Thompson, Clinton ON
But its alright for that same politician to boast about a larger EU market for Pork and Beef when we have never came close to filling the existing market.
Current below C.O.P corn plus High Pork prices will insure expansion of the industry to fill that existing market. However, because corn prices are below C.O.P in N.A. the livestock business plan may not be sustainable . In the long run the pendulum of price swings keeps moving at an ever increasing rate from boom to bust depending on which commodity you are betting on.
Corn in NA is not below COP for everyone growing corn. There is a range of costs and not every producer has the same COP.
You also seem to be assuming that all hog growers buy all their feed (including corn) and that is certainly not the case in Ontario.
The pendulum swings more wildly for some than others. It depends on the management decisions you make...and I doubt if this rise in hog prices causes a huge expansion in the near future. It's not "a sure" thing.
Keep betting on quota
Ractopamine-free Pork, the EU insists on it and we here in Canada don't seem to know how to raise hogs without it.Till then we can't even begin to fill the EU market and it has been like that for some time.
I have sent out 2 batches of ractopamine free pork, Russia has demanded it also, so we answered. The large packer in downtown Toronto won't accept any hogs that are not part of the ractopamine free program. Raube Beuerman
l am just quoting an article from the NFU which stated Canada did not send any ractopamine-free pork to the EU in 2011 even though we had quota clearance for up to 80,000 Tonnes and in 2012 we sent a mere 4,000 Tonnes, similar to what we sent to Chile or Singapore.How can this be? the EU is suppose to be a market of over 500 million people!
It is safe to say parts of CETA are nothing but political hot air.
Keeping up...the plants have to be certified to ship to the EU or any other market demanding Paylean free. Since Quality and Conestoga have only recently become certified as Paylean free, they could hardly be considered in an old NFU report from 2011.
CETA is a good thing...like it or not.
COOL has forced those plants to suddenly make the change but as the NFU story stated, those markets have been there for a number of years and not taken advantage of and at a time when Pork producers in this country were losing money.
2 things l found interesting, we would be trying to ship Pork products into a network of Countries that together export over 2,000,000 Tonnes of Pork anually, will be like trying to ship Dairy products to New Zealand! Second,what if COOL gets knocked down this coming year,does CETA to Pork and Beef farmers suddenly mean nothing?
Existing customers (Russia and China) have forced the certification process for Paylean free, not COOL.
Obviously if those markets were really there at that 2011 time frame then we didn't fill them...so does that mean that we should throw in the towel and give up? I'm glad you are not in charge of selling anything for me.
As far as shipping pork " into a network of Countries that together export over 2,000,000 Tonnes of Pork annually", the US is the largest exporter of pork in the world and we export a lot of pork and beef there...why would we not be able to export to a new market?
If COOL gets knocked down next year it will have little affect on the search for new markets...that's what everyone (OK except SM) does, constantly looks for a higher or more secure or more diversified market.
Like l have said before about CETA and its pertained advantages for Beef and Pork producers,just hot Political Air! Until they actually fill their quota for that tariff-free EU market it means nothing.
The US may be the worlds largest Pork exporter but they have the same problems accessing the EU market as Canada does.What happens when the US signs their expected forthcoming deal with the EU? Where will that leave us?
l would be more than happy if someone could prove me wrong on this but l think if Canadian Pork producers could see COOL disappear tomorrow they would turn their backs on the EU market in a second..why,because they have done that all along!
Could you elaborate further on a) why bred heifers and b) why it's a good deal? Is everyone assuming that $20m / 10,000 is all going to the cost of the animal? There will be substantial intermediate costs...I am not aware of all of them, or what the value is, but could it be 5%?
Thanks
Antony
When sending that amount of animals half way around the world it only makes sence that they would be bred heifers.l certainly am not a expert on it but have sold holstein heifers destined for Mexico in the past.What we would not send them is our cull cows as someone else stated,that l know!
What the details are only the particpants will know.When you add it all up there has not been a lot of money made raising and selling dairy heifers the last few years.Again l am guessing that selling that many heifers abroad should raise the price here at home.
ARE YOU PEOPLE REAL ,WHAT A JOKE ,RATHER THAN SELLING THE VIETEES FINISHED DAIRY PRODUCTS ,YOU SELL THEM THE COW !! PRETTY SMART ,I A FEW YEARS THEY WILL BE KNOCKING ON YOUR DOOR WANTING TO SELL YOU FINISHED PRODUCTS !! THAN THE DAIRY INDUSTRY WILL BE SCREAMING ,PROTECT US FROM UN FAIR TRADE !! IT JUST SHOWS CONSUMERS HOW GREEDY DAIRY FARMERS ARE ,WHEN THEY THINK THIS DEAL WILL MAKE AMERICAN BUYERS PAY MORE ! THEIR IS A EASIER WAY ,JUST DO NOT RAISE SURPLUS ANIMALS ,THAN YOU COULD DRIVE UP THE PRICE FOR EVERY ONE ,JUST LIKE YOU DO IN SUPPY MANAGEMENT FOR THE CONSUMER !!!!!!!! BILL DENBY / BILLS RENTALS .
Don't raise surplus animals, that's Genius thinking! ..and to think all these years l had extra heifers to sell that l was actually making money.
Would much rather sell them to the Vietnamese where they will be properly taken care of, instead of the Americans were the animal is burnt out before she is 5 years old.
Give a person a fish and you feed them for a day . Show them how to fish and you help feed them for a life time .
Now really Bill , do you think any one is shipping their best cows ? We will be selling them our culls . Has been done for years to Mexico and the likes .
Further more why are you yelling ?? Typing in capitals is yelling on the net !
So your saying Vietnam is paying an average of $2000/cow for cull cows...plus shipping of course. Only SM would think it's OK to treat a customer like that!
Have you ever heard the saying "the customer is King"?
No...I didn't think so.
So who are they getting the cattle from a person that roamed the country side or did all the farmers with cattle got to apply for their cattle to go? It seems that there is always a certain few who would go and buy cattle next to nothing and sell them for a got chunk of money with little to do with raising or risking the make it to that age to go. Price of the dairy cattle in the farm paper at the sales barn is no way near $ 2,000. Its not always the guy who,s raising the cattle who is screwing who.
I AM NOT YELLING ,I JUST LIKE TYPING IN CAPITALS ,WHO SAYS YOU ARE YELLING WHEN YOU TYPE IN CAPS ,MUST BE A DAIRY FARMER !! looking for free tax payers money !! I WILL CONTINUE T TYPE IN CAPITALS BECAUSE I HAVE A CHOICE ,HOW ABOUT YOU !! GET OVER IT !!! THE FACTS HURT !!
http://en.wikipedia.org/wiki/All_caps
As a result, netiquette generally discourages the use of all caps when posting messages online. While all caps can be used as an alternative to rich-text "bolding" for a single word or phrase, to express emphasis, repeated use of all caps can be considered "shouting" or irritating.
http://networketiquette.net/core_rules_do_not_use_all_caps.html
No All Caps It is proper netiquette to refrain from using all capital letters in internet correspondence. All capital letters denote shouting in internet communication. Shouting at other users is not acceptable.
http://www.urbandictionary.com/define.php?term=all%20caps
caps indicates the writer thinks nearly everything spewing from his mouth is of utmost importance. This is the same kind of douchebag who highlights 85% of a textbook. Usually, the writing was forwarded to him from some dogmatic groupthink processing center he subscribes to, but to feel like he contributed, he'll all-caps a fartload of words. Often seen with excessive exclamation points.
Trying to help/ teach some people is like trying to make a pig look better with lipstick. Usually only pi$$e$ the pig off and does not help the marketABILITY
It's called communication. You read/heard the message but you don't like the message, so you tell the person his shoe laces are untied or his hair is not combed...or in this case he typed in capital letters. It has nothing to do with the message...GET OVER IT ALREADY!
Canadian cattlemen have been assisting countries all over the world since the 1960's in creating solid, sustainable, ever-innovative dairy and beff agricultural sectors. From Chile and Argentina, to Angola and South Africa, from the Baltics through eastern Europe, and now SE Asia is now receptive and informed as to the value of utilizing our highest possible standards, our best practices. Canadian's should be proud. I believe that the Dairy Cows comment above is just a crabby old nimby-ite.
Sue
20 million for 10,000 high end genetics dairy cows. That's only $2000/cow. They can get that price here in Canada.
Could one of you in the industry, please explain to me the economics of this?
*What is a fair price now, per head?
*What are the transport costs?
*What are the other shipping costs?
*What about the applicability of these genetics in this tropical (although it is somewhat more temperate in north Vietnam) climate?
*Why Canadian dairy cattle, when it would be more transport effective from, say...New Zealand or Australia?
I would really appreciate answers and better practical understanding of this.
Antony
Having some experiences with dairy goats under export/import I can tell you.
When you export a dairy animal raised on alfalfa into a climate that does not grow alfalfa it does not matter how golden your breed line is.The imported animal does not perform as well as it would under the birth country exported from.Now becomes the future hooves hitting the ground and having the ability to adapt into new climate and feed management practices.
For those of us that have done that,seen that, we know that crossbreeds perform better over purebreeds to change.Hybrid Vigor.Australia does sell for export a crossbreed dairy cow and I can tell you from what I saw, outperformed the purebred Holstein hands down.Holsteins under tropical would never be my first choice.
Good for the Canadian cattle people as this program is years away before anything of real value is producing standing on all fours under tropical.
Good luck to them,they are going to need all the luck that is available.
Michael
Canada/Philippines
It becomes the future genetics they are interested in.
Its like exporting our factories rather then our products, Why sell the goose that laid the golden egg ???
Sean McGivern
our family has been suplying dufferin and simcoe countys with pollination by honeybees since 1881 .In the last two years we have lost hives that cost the same as a born calf. I have made a lot of tests. Placed 3 hives beside a flowering soya field for one week all 3 hives died Hope your magazine can relay this message to Ontario farmers that they may procure a better chemical for there crops.If this continues we beekeepers will be out of business. Our pollination of food production fruit,vegetable, and farm produce will have failed Canadian Apiculture Academy
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