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Sheep Outlook

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    Sheep Outlook

    This truncated article comes from the Food Safety Net. The Canadian Sheep Federation announced net cash receipts had dropped 42 per cent for its producers, for the first quarter of 2004.
    That's more than any other livestock group. Even cattle sales, which are usually making the front pages in regards to BSE, are down less, at a still- devastating 36 per cent.
    Like cattle farmers, sheep producers' portion of their annual production normally exported to the U.S. ($10 million in 2003, prior to the May BSE discovery) has been cut off.
    The prior year, 98 per cent of the $18.6 million earned from sheep exports was from sales to the U.S.
    Exclusion from the U.S. market has resulted in lambs normally exported there flooding the Canadian market instead, driving prices down.
    And it gets worse, says the federation. The unfortunate low-price, high- inventory situation is compounded by inadequate slaughter capacity in Canada for lamb.
    So even if farmers want to market their lamb domestically, they have limited places to get it processed.
    Provincial marketing agencies have increased their efforts, to try to clear the backlog of lambs.
    But then along comes that most dreaded commodity to Canadian lamb producers -- imported New Zealand lamb -- which has long competed for their markets (some say unfairly), and still does so.
    Randy Eros, chair of the federation, calls the situation "quite desperate." He says all sheep producers are feeling the impact of the BSE crisis, and many believe that the industry has been overlooked.
    Eros says the federation will continue working on behalf of producers to alleviate some of the problems caused by the U.S. border closure.
    This is really a tough situation for the sheep industry. Sales were picking up before the BSE crisis hit, with producers getting more heavily into sheep production, to meet what was a growing demand both for domestic consumption, and export. Now, what?
    What originally began as an understandable precautionary exercise by the U.S. against its neighbour has now degenerated into a case of U.S. imperialism.

    The point of it is that all sectors of the industry are hurting. There is only one federal lamb processing facility in Alberta and it may even be Western Canada. Couple that with the largest feedlot in Saskatchewan just yesterday announcing that it will not be accepting any more lambs until the border opens and you have a huge crash waiting to happen in the lamb industry.

    The bottom line is that sheep should never, ever have been caught in this mess and efforts to get the border re-opened to sheep should have been going full tilt.

    The sheep that were destined for the U.S. market that have been and are being sold here are heavier than the Canadian consumer likes them. That compounds our problem because there is also more poundage that has to be sold.

    Where is the leadership in the sheep industry while all of this is taking place? What can the grassroots do in order to put a fire under these people? Should the grassroots be taking a long hard look at upcoming elections and step up to the plate?

    #2
    Personally I think that the leaders that we have elected are doing a great job . In Manitoba our check off is only a small beginning for what it costs to look after our industry. It doesn't even come close to paying for what it would take to properly lobby even our own government, let alone answer a trade challenge.

    Our elected leaders are grassroots. They are progessive, approachable and friendly. Many that I have met I admire for taking up the industry challenges in addition to their own activites at home and on their farms. The sheep producers of Canada should be lucky to have them. Unfortuately we don't have the numbers, the dollars or the "Big Hats" that the cattle industry has. My wife and I have on a number of occasions sent letters to various governement reps (as have MANY other sheep producers). Every little bit helps.

    Something that the other sectors have been able to do, thanks to long established checkoffs, and through other means have been able to employ HIRED GUNS to work the media, government, and other trade issues. The elected members provide the direction so that these spin doctors can devote their entire talents to the issues at hand. I must admire again the producers that step up and take on the issues like they have........

    I truly wish I had the time and energy to do more than I have.

    Comment


      #3
      Maybe something else to add. Has the idea of a Western Canadian Sheep group or the like ever been suggested? Something that might work is to combine our numbers in MB, Sask, Alberta, and BC and hire some staff to address the issues. I think that we need to address some issues as a whole rather than as Albertans, or such. The Canadian Sheep Association is a great national board, but some things like attracting additional slaughter capacity and marketing ideas would be better served on a regional scale.

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