by SUSAN MANN
Canada’s beef industry will be the first commodity to collect a national levy on imported products and others will likely follow suit, predict federal industry leaders.
During a press conference at O’Brien Farms in Winchester, Ontario this morning, federal Agriculture Minister Gerry Ritz announced plans to introduce an amendment to the Beef Cattle Research, Market Development and Promotion Levies Order to include an import levy component.
The import levy will begin likely this fall and will charge importers $1 per head of cattle – the current levy for beef marketed in Canada. The amendment requires import levies to be the same as those imposed on domestic production.
The money it will generate – about $800,000 annually – “will help beef producers expand their markets, increase sales and fund research projects,” Ritz said.
Canada Beef Inc. (an industry organization which markets and promotes Canadian cattle and beef products worldwide), has been working with the Farm Products Council of Canada and others for about two years to introduce the import levy.
The Council, which supervises several national promotion and research agencies as well as Canada’s national supply-managed commodity agencies, finalized the rules authorizing the collection of the import levy on Monday night.
Laurent Pellerin, Council chairman, said the beef industry is once again leading the way to change rules the council administers. It was the first commodity to create a research and promotion agency in 2002. “Now they are the first to put in place this levy on imports, hoping that it will open the road for other farmer groups in this country.”
That seems to be already happening, Pellerin said in a telephone interview following the announcement. Strawberry, raspberry, blueberry, potato and pork industries are also considering promotion and research agencies, the prerequisite for qualifying for collecting import levies. "I am expecting in the next couple of months some other commodities to come along" to set up agencies under the Farm Products Agencies Act, he added.
Alberta farmer Chuck MacLean, chair of Canada Beef Inc., said the beef industry’s move paves the way for others in the agricultural industry to create “a more equitable relationship with other markets.”
The amendment to the federal order to include the levy on beef imports is, he said, “a major step in allowing the Canadian beef industry to benefit from a more equitable relationship with our trading partners.”
The organization plans to keep the momentum going and ensure the levy is collected once all procedures have been finalized and implemented, MacLean said.
Importers, who will be responsible for collecting the levy, will need an opportunity to get their bookkeeping and computers in line before collection starts. “We would like to start it in September or October but we need to make sure we have all the right criteria set up for them,” MacLean said during the press conference’s question period.
“This levy on imported cattle and beef cuts will help Canada Beef build on the great work it already does in beef promotion and research,” he said, noting the new levy will provide “a stable funding source for research, market development and promotion activities on beef and beef products.”
The Canadian Cattlemen’s Association said in a press release issued today it welcomed the levy on imports. The “move enables the levy to be applied equally to purchasers of domestic and imported cattle as well as imported beef.”
The association added that the United States has had an import levy on Canadian cattle since 1985. Now, Canada is on equal footing. BF
Comments
l smell a challenge coming from a US lead group! One has to wonder why it took 23 years to counter the US levy?
It may well backfire for those not in a rich enough province . We may see the border close or a counter come from the south . Then the share of the RMP dollars for Ont beef will be too little to help and a province like Alberta will keep paying their producers and end up supplying all of Canada's beef . Except for maybe Quebec where they have strong Ag support programs for their own called ASRA . We can't even keep things fair or level with in our own country yet we want to take on the USA . Go Figure !
I am not sure why the anyone from the USA would mind paying the import levy, it will go to promote/market their beef. That is the point of the levy, market/promote beef as well as to do research on new beef products (so well as other beef industry needs)
One of the reasons it took so long to get an import levy is the need for a truly National checkoff (National Levy)before we could go ahead with import levy. Our East Coast provinces had no way to collect a levy, no legislation to force a levy. It has taken many years to to have all the provinces sign on to a National Checkoff.After the National Check off the next step was the Import Levy. All beef producer in Canada and USA will benefit from the Import Levy.
The only problem I see with an import levy is that the dollars will not make it back to the producer . Every link in the chain before will have it spent and alloted for befor the cowcalf guy can even make a suggestion and the small guy will not be included or asked an opinion .
Wonder if it is not a smoke and mirrors make work project . I hope not .
The Import Levy goes to Canada Beef & Canadian Beef Breeds Council . With the amount of USA beef coming into Ontario it will be a significant sum of money. All Canadian beef producers will benefit; every $1 spent on promoting Canadian beef helps sell out product. As Ontario has the most consumers the Canada Beef spends the most advertising in Ontario. We all benefit from more demand for our product whether we are a small cow/calf or big feedlot operator more demand for beef help us all. And why shouldn't imported beef help pay to advertise beef here in Canada? The Import Levy helps us all!
if you want a say in how the money is spent, go to your county cattlemen's meeting and get involved. Run for the provincial board!
SO it will help Alberta producers sell more Alberta subsidized beef in Ontario . Thanks !!
A dollar? why bother? it will cost more than a dollar to collect it.
Make it higher and suffer the reactionary measure. That's not a good plan either. I'm shocked that farmers who by their nature don't wast money would waste time on a venture such as this.
You have been duped by marketing and lobbying folks.
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