Agriculture minister Shirley McClellan unveiled a ‘made in Alberta’ solution to the provincial cull cow and bull problem.
In a conference call on Monday morning McClellan announced funding for producers to deal with mature cows, bulls and other ruminants impacted by Bovine Spongiform Encephalopathy (BSE) or mad cow disease.
“We have tried to deal with (the BSE) issue in a systematic way,” said McClellan on Monday. “We have recognized throughout this process we would have a problem with mature cattle. This program allows the producer to have a choice — it allows the producer to keep his cattle and feed it, or sell it.”
Funding for the Alberta Mature Animal Market Transition program is part of the previously announced $100 million which was earmarked for both a mature animal program and a final steer and heifer program.
Funding has also been made available to slaughterhouses to improve capacity for mature cattle.
The $100 million brings the total provincial dollars that have been spent on mad cow programs to $400 million.
Arno Doerksen, chairman of the Alberta Beef Producers, supports the provincial program as well.
“This program will give (producers) the immediate cash flow they need while they make adjustments for a new market reality,” he said.
Through the program producers are given two choices, either sell their mature cattle or maintain their herd.
If a producer chooses to maintain the herd they will receive $180 per head for mature beef, dairy and bisons cull cows; $336 for mature beef, dairy and bison cull bulls; and $36 per head for sheep and goats.
The payment reflects assistance to help in winter feeding.
The second option is for a producer to sell his cull cattle and receive a market differential payment based on the greater of the producer’s actual price or the weekly average price and a historic average price.
Producers are allowed to claim a maximum of eight per cent of their eligible beef herd and 16 per cent of their dairy herd. Eligible animals must have been owned by the applicant as of Sept. 1, 2003.
Ranchers typically cull between 10 and 15 per cent of their herd, but an eight per cent cull rate was chosen because of the heavy cull rates last year as a result of the drought.
McClellan said the key to the provincial program is that it offers producers a choice — something the federal aid package announced last week did not.
“To move cattle through the system we have to allow choice,” she said.
“Producers do not have to sell to the slaughterhouses.”
Ottawa approved $120 million in aid last week and the program gave $95.40 per head, but the cattle had to be sold to slaughter by Aug. 31, 2004.
There were concerns the federal program would further soften cattle prices because producers would hang on to cattle until the Aug. 31 deadline hoping the borders would reopen or ranchers would rush their cattle to the market further causing prices to crash.
Doerksen said the provincial program is more appealing because it is market neutral.
“As an industry we have survived, but it has not been an easy time,” he said. “We are optimistic for the future and we see this program is the right way to go because it does not interfere with the market.”
McClellan added, “We did not participate in the national program because it is tied to slaughter. The producer has no choice, he is allowed one buyer — the slaughterhouse.”
McClellan said she was disappointed a national program could not have been agreed upon, but federal Agriculture Minister Lyle Vanclief said the slaughter-only provision was non-negotiable as the feds believed producers would cling to their herds and next year Canada would be facing another cull cattle crisis only twice as big.
There are approximately 200,000 mature cows and bulls in Alberta.
Other ruminants also eligible under the provincial program include bison more than 36 months of age; sheep and goats more than one year old; and deer and elk more than 30 months of age.
For more information on the program visit www.agric.gov.ab.ca
Application forms will be available on Wednesday on the website.