Minister Confident Chinese Meat Ban Issue Will be Resolved

As far as the Honourable Marie-Claude Bibeau, Canada’s federal Minister of Agriculture and Agri-Food, is concerned, as long as both sides are talking every day, good things will happen

a Canadian Meat Business exclusive by Scott Taylor

Bibeau was responding to a question regarding a potentially crippling ban on beef and pork products by the Chinese government and the fact that if the ban stays in place long-term, it could devastate producers.

“I am very confident that as long as we are talking with our counterparts in the Chinese government, and we are doing that every day, this issue will be resolved,” said Minister Bibeau. “We have plans in place to address this issue in the short term, the medium term and the long term. My priority right now, is to re-assure the officials in the Chinese government that what brought on this situation will be investigated.

“We have proposed a plan with additional measures for the beef and pork export system in a way to tighten it and raise awareness so the Chinese will reopen the market as soon as possible.”

“We have financial tools available to us right now to assist producers, but our immediate concern is to get Canadian beef and pork moving to China as quickly as we can”

 

According to Bibeau, the ban was put in place last month after China claimed to have found 188 allegedly counterfeit veterinary certificates for meat labelled as being, “Imported from Canada.” The Chinese government also claimed that there were trace amounts of a banned feed additive called ractopamine in some of the meats.

Ractopamine, which is not common in Canadian pork, is a food additive that some producers will add to their pigs’ feed about a month before they’re slaughtered. The additive helps pigs put on more muscle, and is considered a cost-saving measure for producers. It also means that the meat has a higher protein-to-fat ratio. Health Canada claims there is no evidence that the drug is unsafe for consumers. However, the Chinese (and the EU) believe that ractopamine and other beta-agonist drugs can have a negative effect on the cardiovascular system of humans.

Canadian Government officials were quite skeptical of China’s ractopamine claim. James Watson, the Senior Media Relations Officer at the Public Affairs Branch of Agriculture and Agri-Food Canada told CMB that Canadian beef and pork products are among the safest in the market.

“The Canadian food system is one of the best in the world and the government is confident in the safety of Canadian products and Canadian exports,” Watson said. “Canada is an efficient and reliable supplier of safe, high-quality products, and we look forward to concluding the investigation into the inauthentic certificate. Canadian Food Inspection Agency officials are in daily contact with Chinese officials to resolve this issue as soon as possible.”

Meanwhile, as Bibeau walked us through the events of the past month, she appeared to have serious concerns as to the validity of the certificates that were apparently found with the Canadian beef.

That has created another theory regarding Canada’s relationship with China. Some have suggested that the ban on beef and pork (and initially canola) is part of the Chinese government’s retaliation for the arrest, in Canada, of Huawei CFO Meng Wanzhou. Bibeau, remaining politically astute, won’t even address that theory.

“So, to go back to the beginning, on June 14, we were informed that these export certificates were not authentic and on June 25, the Chinese government informed us that imports of Canadian beef and pork would be banned,” Bibeau said. “So, we have started an investigation and the Chinese have started an investigation and we will find out where these certificates came from and how they got there because they are certificates that we do not use.

“The origin of the inauthentic export certificate, and the products associated with that certificate, is completely unknown,” Bibeau continued. “As a result, this matter has been referred to law enforcement authorities.”

The RCMP have confirmed that it is investigating the alleged fraudulent certificates.

A ban on Canadian beef and pork could become a crippling blow to the Canadian meat sector. China is Canada’s third-largest market for pork and fifth-largest for beef exports. As a result, the ban has the potential to have a very significant negative affect on the bottom lines of the producers in those industries. In April 2019 alone, Canada has already exported $310 million worth of pork and $63 million worth of beef and veal to China.

In fact, Statistics Canada reported that sales from Canada to China had been soaring in the month before the June ban. In fact, Stats Can reported that Canadian producers exported 146 million kilograms of pork to China in the first four months of 2019, an 80 per cent increase from the same period last year when 95 million kilograms was shipped.

Patti Negrave, deputy director for Agriculture and Agri-Food Canada, said about 30 per cent of Canada’s pork exports to China come from Ontario – with more than half from the province’s southwest.

However, while a long-term ban could be financially devastating for Canadian beef ranchers and hog farmers, Bibeau believed it was premature to discuss the creation of a government fund to support producers affected by the ban.

“Our focus right now is to get the ban lifted as quickly as possible,” Minister Bibeau said. “We have financial tools available to us right now to assist producers, but our immediate concern is to get Canadian beef and pork moving to China as quickly as we can.”

Watson said that current support mechanisms are in place and farmers do have financial assistance available to them immediately.

“We will continue doing everything we can to support the Canadian pork and beef sectors,” Watson said. “We are also working with provincial and territorial governments and industry partners to ensure pork and beef producers know how to take full advantage of immediate support available through Agriculture and Agri-Food Canada’s existing Business Risk Management programs.

“Participation of pork and beef producers in BRM programs is strong. We also recently increased the loan limits under the Advance Payments Program to $1 million (from $400,000), and we announced a two-month extension to the AgriStability enrollment deadline to July 2. Producers experiencing financial challenges due to farming or market conditions beyond their control are also encouraged to withdraw funds held in Agri-Invest accounts.”

Bibeau said the federal government takes the issue with China, “Very seriously and we will continue to stand-up for Canada’s entire agricultural sector.”

“The government is “working around the clock” to investigate the suspect Canadian certificates that sparked the Chinese ban,” she said. “We are working every day to resolve this issue.”

QUESTION PERIOD WITH THE OFFICE OF INTERNATIONAL TRADE DIVERSIFICATION


What does your department plan to do to repair the damage done by China’s recent ban on Canadian beef and pork products?

The Government of Canada recognizes the importance of Canada’s pork and beef industries and the jobs that depend on Canadian exports. The Government’s number one priority is to regain full market access for our meat to China, and we are working hard on all fronts.

We will continue doing everything we can to support the Canadian pork and beef sectors. Canada is an efficient and reliable supplier of safe, high-quality products, and we look forward to concluding the investigation into the inauthentic certificate.

Both Ministers Bibeau and Carr continue to focus on diversifying our trade to ensure our farmers have access to as many markets as possible and we will keep working to grow our exports.

Canadian Food Inspection Agency officials are in daily contact with Chinese officials to resolve this issue as soon as possible.



Is the government prepared to support producers who could be devastated by the loss of a market like China?

We are also working with provincial and territorial governments and industry partners to ensure pork and beef producers know how to take full advantage of immediate support available through Agriculture and Agri-Food Canada’s existing Business Risk Management programs. Participation of pork and beef producers in BRM programs is strong.

We also recently increased the loan limits under the Advance Payments Program to $1 million (from $400,000), and we announced a two-month extension to the AgriStability enrollment deadline to July 2nd. Producers experiencing financial challenges due to farming or market conditions beyond their control are also encouraged to withdraw funds held in AgriInvest accounts.

How much do you believe this is related to the arrest of Huawei’s Meng Wanzhou?


• Our government condemns the arbitrary detention and sentencing of Canadians in China.

• We have been reaching out and talking to Canadian companies that are active in China, the second largest market for Canadian businesses, to discuss the situation, share ideas, and ensure the interests of Canadians is always top of mind.

• Our government is focused on securing access to new markets and making Canada the most globally connected economy in the world, and we are doing just that with signing historic agreements in the Asia-Pacific and Europe.

• We are diversifying our markets abroad to create well-paying jobs at home for the middle class an those working hard to join it.