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10 million pounds of ready-to-eat meat and poultry products recalled after testing finds Listeria

BrucePac of Durant, OK, is recalling 9,986,245 pounds of ready-to-eat (RTE) meat and poultry products that may be adulterated with Listeria monocytogenes, according to the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS).

The problem was discovered after FSIS performed routine product testing of finished product containing RTE poultry products produced by BrucePac and confirmed those products were positive for Listeria monocytogenes. Subsequent FSIS investigation identified BrucePac RTE chicken as the source of the Listeria monocytogenes.

FSIS is concerned that some product may be available for use in restaurants, institutions, and other establishments. These other establishments may have used affected meat and poultry in RTE products that may be on store shelves or in consumers’ refrigerators or freezers.

The ready-to-eat meat and poultry items were produced from June 19, 2024, to Oct. 8, 2024. These products were shipped to other establishments and distributors nationwide then distributed to restaurants and institutions.

A list of products subject to this recall can be found here. As yet no photos of recalled products are available.

About Listeria infections
Food contaminated with Listeria monocytogenes may not look or smell spoiled but can still cause serious and sometimes life-threatening infections. Anyone who has eaten any recalled product and developed symptoms of Listeria infection should seek medical treatment and tell their doctors about the possible Listeria exposure.

Also, anyone who has eaten any of the recalled products should monitor themselves for symptoms during the coming weeks because it can take up to 70 days after exposure to Listeria for symptoms of listeriosis to develop.

Symptoms of Listeria infection can include vomiting, nausea, persistent fever, muscle aches, severe headache, and neck stiffness. Specific laboratory tests are required to diagnose Listeria infections, which can mimic other illnesses.

Pregnant women, the elderly, young children, and people such as cancer patients who have weakened immune systems are particularly at risk of serious illnesses, life-threatening infections, other complications and death. Although infected pregnant women may experience only mild, flu-like symptoms, their infections can lead to premature delivery, infection of the newborn, or even stillbirth.

Recalled product:

  • The products subject to recall bear establishment numbers “51205 or P-51205” inside or under the USDA mark of inspection.

As of the posting of this recall, there have been no confirmed reports of adverse reactions due to consumption of these products. Anyone concerned about an illness should contact a healthcare provider.

Restaurants, institutions, and other establishments are urged not to serve or use these products. These products should be thrown away or returned to the place of purchase.

(To sign up for a free subscription to Food Safety News, click here.)

Source: Food Safety News

TARGAN announces European launch of automated feather sex identification system at EuroTier 2024

Animal AgTech company, TARGAN, Inc., will make the European debut of WingScan™ at EuroTier 2024. The US-based manufacturer’s automated chick feather sex identification system leverages artificial intelligence (AI)-powered advanced imaging technology to identify and sort male and female day-old chicks based on their feathers.

Ramin Karimpour, Founder and CEO at TARGAN, said: “With global meat consumption expected to double by 2050, the industry needs to rapidly evolve to feed our growing population. In Europe, poultry is one of the most widely produced and consumed animal-based protein sources, but the sector faces an array of challenges to meet demand, including workforce complexities, tightening welfare standards and higher consumer expectations — all areas that can be addressed with our systems.”

The WingScan™ system offers a throughput of up to 100,000 chicks per hour, depending on the configuration, with up to 98% accuracy. Automated chick sexing improves efficiency and performance, leading to downstream benefits at the farm and plant. By implementing gender-specific rearing strategies, producers can improve flock uniformity, which enhances plant operations.

By overcoming the need for large teams of skilled manual chick sexers, WingScan™ allows hatcheries to address labour challenges. Hatcheries that are able to boost productivity, have a greater potential to achieve consistent, high-precision results and improved ROI across the entire value chain.

TARGAN’s Commercial Lead for Europe, Vincent Fevrier, added: “We have been eagerly working towards this launch because we can see the great opportunity for the European poultry sector to refine its operations by integrating automated and AI-powered systems like ours. Production challenges in Europe are echoed throughout the wider global industry, and we want our solutions to play a pivotal role in addressing these issues. Our team is excited to attend EuroTier, forge new relationships and reconnect with existing partners in November.”

TARGAN will showcase its innovative WingScan™ system for increased hatchery, farm, and plant performance, in Hall 17, Stand B08, where the team will be on hand to discuss their systems, technology and mission to support a healthier, more sustainable food supply by engineering precise, effective and safe technologies.

Canadian farmland values rise 5.5% in first half of 2024: FCC report

Canadian cultivated farmland values rose by an average of 5.5 per cent in the first half of 2024, according to the mid-year farmland values review by Farm Credit Canada (FCC). Over the 12 months from July 2023 to June 2024, there was a 9.6 per cent increase, representing a slowdown compared to the previous 12-month period (January to December 2023).

 

“Farmland values increased at a slower rate, yet 5.5 per cent growth in six months is still a very strong number,” said J.P. Gervais, FCC’s chief economist.

 

For the second consecutive year, Saskatchewan and Quebec have recorded the highest average six-month increases in the country, at 7.4 per cent and 5.4 per cent, respectively. The rates in New Brunswick, British Columbia, and Alberta all settled in the same range, 5.2 per cent, 5.0 per cent, and 4.6 per cent, respectively. Manitoba recorded a growth rate of 3.9 per cent, closely followed by Nova Scotia at 3.8 per cent. Ontario recorded a lower increase at 2.1 per cent, with Prince Edward Island concluding the list at 1.7 per cent.

Elevated borrowing costs, lower commodity prices and the increased price of land hasn’t deterred some buyers. Looking ahead, declining borrowing costs and a limited supply of available farmland should sustain the current high prices for farmland.

 

“The continued rise in farmland values highlights a positive and robust long-term outlook for the agriculture sector. As we move into the latter half of 2024, the trends in farm revenues and interest rates will be key indicators of where farmland values might head next,” said Gervais.

 

Gervais noted that farm cash receipts are projected to decline overall in 2024 by 3.3 per cent as commodity prices show few signs of a quick rebound, possibly limiting farmers’ willingness and capacity to assign higher valuations to farmland.

“Understanding economic and financial trends is essential for making informed decisions. FCC is committed to providing the industry with data-driven insights that can help producers and investors navigate the current economic headwinds,” added Gervais. For more economic insights and analysis, visit FCC Economics at fcc.ca/Economics.

 

About FCC

FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization’s employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca

 

Fatty acids found in meat and poultry may be beneficial to human metabolism

The healthy dietary choice seems easy.

Consuming fish oil or seafood along with their omega-3 fatty acids — good. Consuming too much red meat along with its omega-6 fatty acids — bad. In reality, however, the impact of arachidonic acid, an omega-6 polyunsaturated fat found only in animal products, upon human health remains a complicated, poorly understood matter.

A Purdue University collaboration led by James Markworth, assistant professor of animal sciences, will carefully test the health effects of omega-6 in laboratory experiments. Funded by the U.S. Department of Agriculture’s National Institute of Food and Agriculture, the experiments also will clarify which omega-3 fatty acids found in fish oil and seafood are responsible for yielding their health benefits.

Both omega-3 and omega-6 are long-chain, polyunsaturated fatty acids, and some of these fatty acids are also essential fatty acids. “These polyunsaturated fatty acids are essential because you need to acquire them through the diet,” Markworth said. “They can’t be made in the body. And in particular it’s the long-chain versions, which are found in products of animal or marine origin, that are thought to potentially influence human health.”

The long-chain omega-6 fat arachidonic acid is found only in meat, poultry and eggs. “You can’t get it from vegetable sources, and you can’t get it from fish. We think that these nutrients found in meat and poultry products might have similar benefits as, say, fish oil or fish products. And that’s something you don’t hear very often,” Markworth said.

Previous research has well established that fish oil fatty acids have metabolic benefits. But which fatty acids convey those benefits and how remains unclear. The major ones are eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA).

“When you take fish oil supplements or you eat fish, it’s a complex mixture of these different nutrients and we don’t really know which ones are doing what. We don’t know precisely which essential fatty acids benefit metabolic health, obesity, insulin resistance and how they may do so by impacting upon skeletal muscle as the largest organ in the body,” Markworth said.

Collaborating with Markworth on the project are: Tzu-Wen Cross in the College of Health and Human Sciences, along with Tim Johnson and Kolapo Ajuwon, both in the College of Agriculture’s Department of Animal Sciences. Cross, an assistant professor of nutrition science, and Johnson, an associate professor of animal sciences, specialize in gut microbiome. Ajuwon specializes in animal nutrition.

“What we’re suggesting is when you eat these lipids in the diet or dietary supplements, the systemic response your body has might depend on the resident microbes first encountered in the gastrointestinal tract,” said Markworth, a muscle biologist. “And we’re proposing that the systemic response is largely mediated by the effect on the skeletal muscle.” As the largest site of glucose disposal and insulin sensitivity, the skeletal muscle determines metabolic health, obesity and diabetes, he noted.

Previous research shows that if mice are given antibiotics together with fish oil, the fish oil works differently than it does without antibiotics. “What is it about consuming antibiotics that stops fish oil supplements from having their metabolic benefit on peripheral metabolic health in mice or potentially in humans? That study suggests that the gut bacteria are required, and we don’t know why,” he said.

About a decade ago, scientists were just beginning to recognize the importance of the microbiome. “Now we realize how much it impacts our health in various aspects,” Cross said. “A lot of the things that we do in using diet to promote health is actually through affecting our gut microbiome. But we still don’t understand enough to know how to modify the microbiome in a specific way to achieve our outcome.

“This is a good model for us to identify interactions between the microbiome and host to understand how the microbiome affects metabolism and physiology,” Cross said. “Through that, we can potentially identify mediators we can use as targeted therapeutics.”

Source: KFGO

BrucePac Recalls Ready-To-Eat Meat and Poultry Products Due to Possible Listeria Contamination

BrucePac, a Durant, Okla. establishment, is recalling approximately 9,986,245 pounds of ready-to-eat (RTE) meat and poultry products that may be adulterated with Listeria monocytogenes, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.

The ready-to-eat meat and poultry items were produced from June 19, 2024, to October 8, 2024. These products were shipped to other establishments and distributors nationwide then distributed to restaurants and institutions. Information regarding product labels and the list of products will be provided when available.

The products subject to recall bear establishment numbers “51205 or P-51205” inside or under the USDA mark of inspection.

The problem was discovered after FSIS performed routine product testing of finished product containing RTE poultry products produced by BrucePac and confirmed those products positive for Listeria monocytogenes. Subsequent FSIS investigation identified BrucePac RTE chicken as the source of the Listeria monocytogenes.

There have been no confirmed reports of adverse reactions due to consumption of these products. Anyone concerned about an illness should contact a healthcare provider.

Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection that primarily affects older adults, persons with weakened immune systems, and pregnant women and their newborns. Less commonly, persons outside these risk groups are affected.

Listeriosis can cause fever, muscle aches, headache, stiff neck, confusion, loss of balance and convulsions sometimes preceded by diarrhea or other gastrointestinal symptoms. An invasive infection spreads beyond the gastrointestinal tract. In pregnant women, the infection can cause miscarriages, stillbirths, premature delivery or life-threatening infection of the newborn. In addition, serious and sometimes fatal infections in older adults and persons with weakened immune systems. Listeriosis is treated with antibiotics. Persons in the higher-risk categories who experience flu-like symptoms within two months after eating contaminated food should seek medical care and tell the health care provider about eating the contaminated food.

FSIS is concerned that some product may be available for use in restaurants, institutions, and other establishments. These other establishments may have used affected meat and poultry in RTE products that may be on store shelves or in consumers’ refrigerators or freezers. Restaurants, institutions, and other establishments are urged not to serve or use these products. These products should be thrown away or returned to the place of purchase.

FSIS routinely conducts recall effectiveness checks to verify recalling firms notify their customers of the recall and that steps are taken to make certain that the product is no longer available to consumers. When available, the retail distribution list(s) will be posted on the FSIS website at www.fsis.usda.gov/recalls.

Media and consumers with questions regarding the recall can contact Jeff Golangco, VP Business Development at BrucePac, at 503-874-3000.

Consumers with food safety questions can call the toll-free USDA Meat and Poultry Hotline at 888-MPHotline (888-674-6854) or send a question via email to MPHotline@usda.gov. For consumers that need to report a problem with a meat, poultry, or egg product, the online Electronic Consumer Complaint Monitoring System can be accessed 24 hours a day at https://foodcomplaint.fsis.usda.gov/eCCF/.

Source: USDA

Significant AMR Found in Campylobacter From East African Poultry and Humans

In one of the largest-ever studies using whole genome sequencing (WGS) to characterize Campylobacter in Africa, antimicrobial resistance (AMR) was identified in 75 percent of human and poultry isolates from Tanzania and Kenya.

Consumption of chicken meat is an important contributor to human campylobacteriosis in sub-Saharan Africa. At the same time, the use of WGS is increasing worldwide to inform foodborne pathogen control strategies, but, at present, very few WGS analyses of Campylobacter in Africa exist, and even fewer involve the comparison of human and poultry isolates.

A recent study published in the U.S. Centers for Disease Control and Prevention’s (CDC’s) Emerging Infectious Diseases aimed to fill this knowledge gap while also gaining a better understanding of how campylobacteriosis from poultry contributes to the rise of AMR. The study integrated data acquired from sampling conducted on poultry farms in Tanzania and at clinics across Kenya—countries in which there is a high prevalence of AMR among C. jejuni and C. coli human and poultry isolates. Campylobacter isolates were subjected to WGS analysis and antimicrobial susceptibility testing, from which the researchers identified similarities and differences between isolates from human clinical cases and chicken farms.

The researchers isolated Campylobacter from 56 (8.6 percent) of 649 chicken cloacal swab specimens. A total of 178 C. jejuni and C. coli isolates from both human patients (81) and poultry samples (97) were confirmed and subjected to WGS and antimicrobial susceptibility testing. C. coli comprised six (7.4 percent) of 81 human isolates and 18 (18.6 percent) of 97 poultry isolates; C. jejuni made up the remaining isolates.

AMR was detected in a vast majority of both human and poultry isolates—approximately 75 percent—with a higher prevalence of multidrug resistance in poultry isolates (2.5 percent) than human isolates (more than 40 percent). Resistance to tetracyclines, fluoroquinolones, and sulphonamides was especially common. Additionally, significant genetic similarity between human and poultry Campylobacter isolates was observed, with many isolates representing previously unreported sequence types (STs).

Also noted was great diversity of STs, rather than just a few STs dominating the majority of isolates. A total of 78 STs were identified, 27 of which have previously been isolated from other countries in Africa and recorded on PubMLST (a public database for microbial genomic data).

Overall, the study demonstrated a “striking diversity” of Campylobacter in both humans and poultry, with some STs common to multiple farms or to both humans and poultry. The high prevalence of AMR in all isolates and MDR in poultry isolates, as well as the identification of many previously unidentified STs, highlights the need for ongoing investigation of foodborne enteric pathogens like Campylobacter in low-resource settings. The researchers call for greater use of WGS in surveillance systems, as well as a better understanding of the role of antimicrobial use and biosecurity measures as drivers of AMR, and improved governance of antimicrobial use in the food and healthcare sectors.

UK Resumes Poultry Exports to South Africa After Eight-Year Hiatus Due to Bird Flu Ban

The UK has successfully lifted a long-standing bird flu-related trade restriction with South Africa, allowing British poultry producers to export to the country for the first time in eight years. The embargo was lifted after the UK was declared free of avian influenza earlier this year.

This development is expected to inject an estimated £160m ($209.2m) into the UK poultry industry, according to government estimates.

UK food security minister Daniel Zeichner recently met with South African ministers Rosemary Capa and Andrew Whitfield to finalize the agreement. Zeichner emphasized that the deal will create significant opportunities for UK poultry exporters and contribute to economic growth. He stated, “This agreement not only opens new avenues for UK poultry traders but also strengthens the UK economy, marking a step forward in securing better trade deals for farmers and enhancing food exports.”

Before the export ban, South Africa was a key market for UK poultry, with exports exceeding £37m in 2016. The reopening of the market has been warmly received by representatives of the meat industry.

Katie Doherty, CEO of the International Meat Trade Association, expressed enthusiasm, calling the news “fantastic” for UK poultry producers and exporters. She noted that South Africa had been a vital market before the ban.

Richard Griffiths, Chief Executive of the British Poultry Council, added that the deal represents a successful collaboration between the government and industry to remove technical trade barriers. “Re-establishing trade with South Africa, one of our largest markets in the past, is incredibly exciting,” he said.

What Does Avian Metapneumovirus Look Like on the Poultry Farm?

Avian metapneumovirus is proving to be a shape-shifter.

The viral disease, which has surged in the U.S. over the past year, is mostly a problem because it allows secondary bacterial infections to thrive.

The symptoms in birds, which range from swollen heads to death, don’t look the same in every house.

Poultry veterinarians discussed their experiences with the disease on Oct. 2 at the National Meeting on Poultry Health, Processing and Live Production presented by Delmarva Chicken Association.

Dr. Andy Bishop of Wayne-Sanderson Farms has seen broilers develop symptoms at 28 days or older.

Breeders can show signs any time after they begin producing eggs, with mortality most severe among birds 40 weeks and older, he said.

Metapneumovirus symptoms can resemble those of airsacculitis and bronchitis, but with a greater number of swollen heads.

In broiler breeders, the drop in egg production may be negligible — or as high as 6%. A spike in mortality has been Bishop’s biggest concern.

“It was a very variable presentation from one flock to the next,” said Bishop, who has worked in the broiler industry in several Southeastern states.

Dr. Kristi Scott of the Virginia Poultry Growers Cooperative suspects metapneumovirus is underdiagnosed in pullet houses.

Farmers might see some head shaking or almond-shaped eyes, but clinical signs are rare, she said.

Problems become more evident as layers come into production and the secondary bacterial infections kick in.

“A lot of times that was just being attributed to other problems until you would maybe see some sinusitis,” said Scott, who has experience with both turkeys and layers.

Though swollen heads are a hallmark of metapneumovirus, they weren’t always common in the outbreaks Scott handled.

And while infections sometimes ripped through an entire complex, other times they were contained to one house, she said.

Heavy breeds in cage-free houses showed the most pronounced spikes in mortality and drops in egg production.

Multiple treatments were often needed to get the illness under control, Scott said.

Dr. Bob Owen of Best Veterinary Solutions, who works with two turkey companies in Pennsylvania and one in Utah, said diagnosis in turkeys is easy and starts at about 28 days.

“Our first clinical sign is a snick that I call a ‘student snick,’” he said. “It’s so noticeable even a student could pick it up.”

Dr. Eric Orozco of Butterball, who works with turkeys in North Carolina, said he sees the most challenges when turkeys are 6 to 12 weeks old.

Turkey breeders are most vulnerable around 30 weeks old, and often have neurological signs and production drops of 10% to 15%.

Orozco has seen metapneumovirus result in E. coli infections that were complicated to treat. For his first case, he initially suspected mycoplasma because the birds had swollen sinuses.

When responding to an outbreak in broilers, Bishop looks at ways to increase air movement through the house without chilling the birds.

He has had success treating birds with tetracycline, and he commonly doses the water with iodine, which loosens up congestion.

Orozco said his growers like the iodine treatment. He doesn’t have data to show that it works, but he suspects that it does.

For the past few months, he has used a disinfectant fogging.

This treatment needs to be done early, but it can decrease clinical signs.

“Even sometimes no breaks with E. coli, or if you have to treat for E. coli, it’s going to be a really easy case,” he said.

Owen mostly works with organic birds. Antibiotics aren’t an option for him, so he focuses on preventing the secondary infection.

Because organic birds have a high value, the farms Owen works with are careful to keep their water sanitation and ventilation systems in good shape.

He’s trained growers to call the technician the same day they observe the snick.

The tech then comes out to see if the air and water systems, litter or bird comfort need to be tweaked, and to start the birds on mucus-busting treatments.

Owen also treats with aspirin.

“I’m not sure whether I use it to make me feel better or the birds feel better,” he said.

At this point in his career, Owen isn’t sure he would prescribe antibiotics for metapneumovirus even if he could.

When the house systems are working right and the grower is prompt in reporting a problem, he has had few disasters.

Those tend to happen when a grower sees a snick and waits to call the tech until dead birds are piling up — often a delay of just a few days.

“By then, Katie bar the door. You know, it’s too late,” Owen said. “With the antibiotics that we have available to us today, even if we can treat (the birds) with it, it just doesn’t do us any good.”

If a live vaccine were available, the turkey vets said they would be interested in it.

On the broiler side, Bishop said such a vaccine would have a lot of appeal for pullets.

But Scott said metapneumovirus so far hasn’t taken a heavy enough toll for layer companies to justify the expense of a vaccine.

In the meantime, cold weather is returning and bringing ideal conditions for metapneumovirus.

Bishop and Orozco are pushing their farms to maintain a healthful environment, with proper sanitation in drinker lines and good litter management.

Owen is having posters put in feed rooms with a version of a saying attributed to football coach Vince Lombardi — “If you are five minutes early, you are already 10 minutes late.”

Early detection and response will be extremely important, especially until a vaccine is available, he said.

“We’ve just got to be ahead of it,” Owen said. “If we don’t, there’s going to be a lot of problems this winter.”

Source: Philip Gruber, Lancaster Farming

Guelph/Eramosa residents call for less regulation of backyard chickens

What could have been a simple afternoon public meeting in Guelph/Eramosa veered into a philosophical debate over whether it is right for a municipality to regulate something that may provide food for a family.

That may have been beyond the purview of Guelph/Eramosa council, but it heard from residents at a Monday public meeting who wanted less regulations when the township creates a bylaw looking to allow backyard domestic poultry coops at rural residential properties that aren’t farms.

Council was looking at both the official zoning bylaw and the municipal regulations but didn’t make a final decision on either at the meeting.

County planner Meagan Ferris explained the draft zoning bylaw amendment would permit backyard poultry coops in rural residential areas and some hamlets as of right outside of agriculturally-zoned properties.

Properties would need to be a minimum of one acre and there would be a limit on the number of hens, ducks, geese and turkeys one could have and on the size of the coop.

It would have a varying impact in some hamlets and rural subdivisions, Ferris said.

For example, Ellenville Crescent just north of Guelph would see 30 out of 32 lots benefit from the new regulations meanwhile the hamlet of Everton would only have 22 of 89 lots benefitting.

“We’re considering land use compatibility, considering everyone’s neighbours at the end of the day,” Ferris said. “A lot of people may have interest in this sort of use, some people may already have it, some people may have strong opinions and not appreciate domestic poultry and would have a lot of challenges and concerns with housing domestic poultry.”

Resident Chris Kumar didn’t think the proposed regulations around lot size were fair and figured they should make the minimum lot size much smaller.

“We don’t want to upset these people because this guy can get eggs for his family, a sustainable source of nutrition under the constitution we are allowed to do that, and this guy can’t. That’s not fair, I’m trying to feed my family,” Kumar said.

Gabriel Fernandes similarly said he didn’t feel the municipality has the authority to tell people what they can and can’t do on their property, particularly in regards to the ability to provide food for themselves.

“We’re not telling you you can’t feed your family, that’s not what this is about,” said Mayor Chris White in response, adding municipalities have authority under the municipal act and the province.

Fernandes also brought up the afternoon meeting time, which a lot of people would be unable to attend because of work.

Bill Weima agreed.

“It’s concerning that the meeting is not being held after hours, there’s a lot of people who’d like to have chickens,” Weima said.

Weima noted regulations are more relaxed in the City of Guelph, claiming a backyard half the size of council chambers can have 10 hens.

“We’re feeling so over-regulated,” said Cor Vanleeuwen who had his chickens “evicted” by bylaw recently after a neighbour complaint.

The mayor noted the irony in the conversation was the fact the township was looking to expand who can have chickens rather than restrict and clarified council was not looking to shut down public input on this issue but admitted it may have been better to hold the public meeting in the evening.

“We don’t benefit by not hearing public input on this issue, in fact it makes it worse,” White said. “You end up passing bylaws that don’t make anyone happy.”

Staff would take comments back and would bring forward the bylaw and regulations back to council with a recommendation at a later date.

Source: EloraFerusToday.com

Canada’s dairy, poultry and eggs cartel

Perhaps the most self-defeating economic policy of the federal government is supply management for dairy, poultry and eggs.

 

The policy effectively isolates Canadian dairy farmers from competition and from variation in the price they receive for the milk produced on their farms; in short it is government sanctioned cartel. This has resulted in continual increases in the prices their subsidized industry receives for their products.

Supply management limits the quantity of dairy products each farmer may produce and sell, the price is set by provincial governments and the domestic market is, by using extraordinarily high tariffs, protected from imports beyond a nominal amount.

The beleaguered consumer just sees inexorably rising prices at the grocery store.

The 9433 Canadian dairy farms thereby hold the 41 million Canadians for a ransom that has been estimated at between $300 and $440 millions dollars annually. But that just some of the costs.

The lack of competition between producers and the high cost of quota for each dairy cow (for example, more than $24,000 in Ontario) means there is little capital available for improving yields per cow or for reducing farm costs to achieve greater efficiency.

These dairy farmers are an extremely effective lobby, both at the national and provincial levels, and have consistently increased the financial return on their operations beyond what other sectors have been able to realize in the past four decades. But, in the coddled minds of the industry, above-market returns are not enough.

Bill C-282, now being considered in the Senate, would exempt the dairy sector’s supply management regime from any future trade negotiations. This may sound like a cost-free arrangement, but it’s not. When Canada enters into trade negotiations with other nations, our closed market for all but small amounts of imported dairy products makes any progress in increasing access to a wide range of potential trading markets virtually impossible.

The Bloc Quebecois is the sponsor of Bill C-282 and makes its approval in the House of Commons a condition for their continuing support for the Liberal minority government.

But, as long as politicians lack the courage to confront the dairy lobby, as long as dairy producers focus on defending a shrinking domestic market, Canadian consumers will continue to be held hostage by this outdated Soviet-style system. That is a rather harsh statement – but true.

Other nations (e.g. New Zealand and Australia) have abandoned supply management schemes and witnessed growth in their dairy sectors as well as reduced domestic prices.

The same could be achieved in Canada to the great benefit of consumers, especially the low-income households which have to spend a high percentage of their household budgets on food.

Australia took just over a decade to abolish their system and facilitate industry adjustment. They eliminated tariffs gradually. For those wanting to leave the industry, the government bought up quotas and financed the purchase with a sales tax on milk of 11 cents per litre until quotas (beyond those individual farmers held when the system began) were retired. The government also invested funds in research aimed at increasing output, economies of scale and market development.

Assuming that our federal government finds some backbone, it needs first to reject the proposed change in Bill C-282. Second, Ottawa should institute a ten-year plan, effective immediately, that will eventually phase out this extremely discriminatory regime which hurts lower-income Canadians and compromises our ability to obtain wide-ranging trade agreements.

Let’s stop this rip-off of Canadian consumers and allow the Canadian dairy industry to realize its competitive potential.

Source: Penticton Herald

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