Canada-Mexico beef trade under a worker-shortage shadow
Story Date: 7/1/2016

 

Source: Chris Scott, MEATINGPLACE, 6/29/16


As Canada prepares for an expansion of beef exports to Mexico this fall, a trade group representative is warning that there may not be enough skilled workers thanks to an upcoming Canadian government initiative.


Canada is preparing to resume fully normalized trade of beef products with Mexico on Oct. 1, a move that is expected to provide $10 million in additional incremental sales for Canadian livestock producers and meat packers, according to a news release from the Canadian Meat Council (CMC). Mexico had suspended trade of specific beef products after the confirmation of bovine spongiform encephalopathy (BSE) in Canada in 2003. The market had been closed to beef from animals 30 months or older, although Mexico continued to buy an average of $130 million of other beef products from Canada in each of the last five years, according to the organization.


In light of the trade restoration, a CMC official is warning that the industry may not be able to find enough qualified workers if new Canadian government limits on the number of temporary foreign workers take effect on Friday as scheduled. Ron Davidson, CMC director of international trade, government and media relations told Farmscape.com there is “a pretty direct line between not having enough workers in the plants and decreased value-added production,” among other negative consequences for the industry.


Davidson added that if the industry doesn’t have the people, “trade agreements are of no use” and may work against Canada by forcing the country to open its markets to meat products from other foreign producers to meet consumer demand.

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