Meat companies and livestock farmers feeling the pain of China blockade

Canadian Meat Council wants to see a strategy for dealing with the issue.Ottawa—The so-called temporary suspension of Canadian pork and beef exports to China now is in its third month with no resolution in sight and losses mounting, says the Canadian Meat Council (CMC).The suspension began June 25 when China said it found dubious export certificates for a shipment of Canadian pork and closed its doors to further imports of Canadian pork and beef.“Canadian pork and beef farmers and exporters have been patient and supported the government's efforts to find a resolution to the issue,” CMC said.“However, as CFIA's representations that Canada is a victim, not a culprit, have failed to resolve the matter, it becomes clear that bigger political issues are the true obstacles that the Canadian government must resolve.”The financial loss for farmers and packers “is approaching $100 million and the longer it continues, the greater the risk to Canadian jobs,” CMC said in a statement.It's time for the federal government “to make clear its strategy to reopen the Chinese market and ensure we have more options for export diversification when such issues arise.”The RCMP is supposed to be investigating the export documents, which CMC said exhibited “technical irregularities and fraudulently certified as Canadian with falsified documents.”Garry Stordy, spokesman for the Canadian Pork Council, said his organization has received no information from the Mounties about the investigation and doubts it will be completed any time soon. “We are more focused on getting back into the market and not really waiting.”Crop growers have also suffered from the closure of the Chinese market to Canadian canola and want federal financial assistance as well as help in finding other markets.The government has finally appointed a new ambassador to China. Dominic Barton comes with considerable knowledge of the agrifood sector. It has also requested bilateral consultations through the World Trade Organization with China over the ongoing trade dispute.Trade experts say the government is hoping that action will take the heat off Ottawa for now. It will also give federal officials more time to collect technical information and won't disrupt strong wheat sales to China.One observer, who did not want to be named, said “seeking consultations is a good move for Canada. The case will still take a few months to get to the litigation phase. But this will take the heat off for now.”The CMC said the CFIA “has provided China Customs with all the information and analysis requested to demonstrate that the source of the labelling infractions was not Canadian. CFIA has also assured China of the strong mechanisms in place in Canada to ensure compliance with all of China's technical requirements.”China has not responded to those assurances just as it didn't with the information on canola. The canola contamination claim is regarded by some as a move by Beijing to cover the loss of much of the Chinese pig herd to African swine fever, which would sharply the amount of imported feed China needed. It was easier for Beijing to make up a story about canola contamination than have to admit it had mishandled the ASF outbreak, trade insiders said.CMC said it is asking all the politician parties “to articulate how they see this file being resolved. The longer Canadian producers and exporters remain pawns in a political stand-off - the more the threat of job losses will be felt. The red meat sector represents 266,000 jobs from farm to fork.”The industry expects a meaningful discussion with the government “on building export resilience and compensation for the millions of dollars lost by the Canadian farmers and exporters who have been the victims of the suspension,” CMC said. “The red meat sector has seen its highs and lows in this market over the years but China remains a key trading partner for Canada. Canada has high quality and safe meat to sell and we know Chinese consumers want and need it.”The longer the meat industry is shut out of China, the harder it will be to re-establish business there as Chinese buyers will as Chinese importers establish arrangements with alternate suppliers, CMC said. “The financial investments made and commercial relations built to position Canadian meat in China are eroding daily and our global brand will be negatively impacted.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.