Agriculture
Canada’s Feedlots Facing an Uncertain Future
Canada’s Feedlots Facing an Uncertain Future
The coronavirus has taken a huge toll on the North American meat industry. As the virus continues to claim the lives of workers and workplace conditions become unsafe, many meat processing plants simply haven’t been able to adequately staff their facilities. Subsequently, many plants and feedlots — including leading brands in Alberta — have temporarily shut down operations.
Other big names that haven’t experienced outbreaks in their facilities have managed to remain open or at least reopen and function at a lower capacity. However, even these cattle feedlots and processing plants are facing an uncertain future as the pandemic drags on.
A Dip in Demand
In addition to facility outbreaks, a dip in demand for pork, poultry and beef has also resulted in major setbacks for feedlots and slaughterhouses. Since officials issued stay-at-home orders three months ago, restaurants and butchers haven’t been ordering as much meat from big-industry meat processors. Instead, with no guests to serve or customers to whom they might sell prime cuts, these businesses have dramatically cut their orders.
Of course, the meat industry wasn’t expecting this sudden decrease in demand. As cows continued to birth calves and inventory built up in feedlots, these companies were left with no other choice than to cull thousands of animals per day and discard the carcasses. Obviously, this represents a massive amount of waste as well as a huge loss of profit.
Selling Calves
Many small farmers and large industrial developments also worry they’ll lose money this fall when it comes time to sell calves. These cow-calf operations usually generate a decent amount of revenue when the economy is good. In light of recent events, however, market conditions aren’t exactly prime for selling calves.
Moreover, as feedlots reach and exceed maximum capacities, the animals will most likely become more anxious. This increase in stress levels will negatively impact their immune systems and, ultimately, the quality of meat that comes from them. Consequently, this fall’s herd may not be as healthy as the last, meaning they’ll sell for much less and leave feedlots and meat processors in the red.
Assistance and Adjustments
Early last month, the Canadian government announced it would provide $252 million in federal assistance to the agri-food sector. The vast majority of this federal aid will go to processing plants in hopes of better-protecting workers and helping facilities function at full capacity once again. Still, as long as demand is low, it’s unlikely the industry will bounce back quickly — even with financial assistance. At best, this money will help keep the industry afloat until restaurants and eateries fully reopen.
Additionally, meat processing plants that have remained open or resumed operations are beginning to consciously cut their inventory and production output to meet the decrease in demand. While this will help the meat industry, it may cause issues for fast-food chains and restaurants that may experience shortages as a result.
Is the Worst Yet to Come?
Over the past few weeks, some major meat processors and cattle feedlots have begun to reopen. Already, they’re back to processing 60,000 cattle per week. However, prices aren’t rising for consumers, thus showcasing the resiliency of the Canadian food system. In the coming months, bottlenecks should stop and business should be able to return to normal — as long as a second and third wave of coronavirus cases don’t sweep the nation.
In the future, the meat industry might invest more in expanding local and regional food supply chains. This way, if Cargill, National Beef, JBS and Tyson — which own more than 80% of the beef supply — shut down again, small ranchers could provide meat for their communities. Thus, the industry wouldn’t face such an uncertain future if another pandemic were to occur.
Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture
Agriculture
Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production
From LifeSiteNews
Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.
The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.
Bill C-293, or “An Act respecting pandemic prevention and preparedness,” is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears.
“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill.
Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?”
In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.”
Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.
Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”
It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”
A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”
Text from the bill also states that the government would be able to “promote commercial activities that can help reduce pandemic risk,” which includes the “production of alternative proteins, and phase out commercial activities that disproportionately contribute to pandemic risk, including activities that involve high-risk species.”
The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.”
As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.
Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption.
Agriculture
Time to End Supply Management
From the Frontier Centre for Public Policy
According to a 2021 report from the Montreal Economic Institute, Canadian families pay up to $600 more per year on dairy products alone due to supply management.
The New Democrats and the Liberals have pledged to tackle inflation, curb price gouging, and address child poverty. Leaders like Jagmeet Singh have railed against corporate greed while Prime Minister Justin Trudeau’s government has introduced programs claiming to feed your children.
But despite these announcements, food affordability remains a serious problem in Canada. If our political leaders are truly committed to making nutritious food accessible for all Canadians, they must confront the largely ignored factor: Canada’s supply management system.
Supply Management Hurts Families
Supply management, which governs the production and pricing of dairy, eggs, and poultry in Canada, was designed to stabilize farmers’ incomes. However, it now acts as an unnecessary burden on consumers, artificially inflating the cost of essential food items. Farmers are given strict quotas on how much they can produce, and sky-high tariffs—often more than 200%—are imposed on imports.
This creates a closed market that keeps prices far higher than in a free-market system. According to a 2021 report from the Montreal Economic Institute, Canadian families pay up to $600 more per year on dairy products alone due to supply management. This is no small sum to households already feeling the pinch.
To put it in perspective, a litre of milk in Canada costs between $1.50-$2.50, compared to USD 1.00 (around $1.35 CAD) in the United States, where such market controls don’t exist. The cost of other staples, such as eggs and chicken, follows the same pattern, with Canadians paying significantly more than their American counterparts.
These artificially high prices disproportionately affect families struggling. As inflation continues to drive up the cost of housing, fuel, and other essentials, paying extra for basic food becomes the tipping point between having three meals a day or skipping meals to cover rent or bills.
The Conservative Opportunity: Free Markets and Family Values
The Conservative Party has historically championed free markets and policies promoting family well-being, but they also support the food cartels.
In a genuinely free market, prices are determined by supply and demand, leading to lower consumer costs and more production efficiency. Ending supply management would achieve both goals.
While Conservatives have long supported free markets, they have been reluctant to challenge supply management, largely due to political concerns in Quebec, where the system is popular among producers. Being pro-trade and supporting supply management are incongruous political positions.
However, with the Conservatives drawing closer to forming government, potentially without significant electoral support from Quebec, now is the time for a strategic shift. Shedding the protectionist policies would be a bold and forward-thinking move to distinguish the party as serious about free markets and family welfare.
It would also send a powerful message to voters across the country, particularly in regions where food insecurity is rising. Conservatives could frame the policy change as a direct effort to reduce food prices, ease the burden on low-income families, and protect Canadian consumers from the high costs supply management imposes.
The Ethical Case: Dumping Food While Canadians Go Hungry
Perhaps the most shocking aspect of supply management is the appalling waste it produces. To keep prices high, in 2023 alone, tens of millions of litres of milk were discarded—wasted food that could have gone to Canadians in need. This is an unconscionable practice in a country where nearly 2 million people rely on food banks to survive. How can wasting food while so many families struggle to afford basic groceries be justified?
This waste flies in the face of compassion and fairness, and contradicts the principles of a free market.
The Bloc Quebecois’ Game
Given that the significant dairy industry in Quebec benefits immensely from supply management, the Bloc Quebecois is seeking to leverage the weakness of the Trudeau minority in exchange for a Bloc bill, Bill C-282, that would shield supply management from future changes. The Bloc Québécois Bill C-282 wants to amend the Trade and Development Act. Reportedly, it has support from all parties in Parliament.
One of the key setbacks is the restriction supply management places on open market access. It hinders the ability to fully embrace free trade agreements. A primary objectives of Bill C-282 is to prevent the Canadian government from making concessions in international trade agreements that could undermine the supply management system. This is particularly relevant in trade negotiations where foreign countries often seek increased access to Canada’s agricultural markets.
Consequently, this limits the potential for growth in agricultural exports. Central Canada benefits the most from supply management, and although its trade reverberations hurt everyone, they seem to hurt Western producers the most.
A Call to Action for All Parties
For New Democrats and Liberals, the solution to supporting families and children through food affordability lies in targeting alleged corporate greed and expanding social programs. But if they are serious about addressing child poverty and food insecurity, they would confront supply management. Likewise, for Conservatives, ending supply management is a natural extension of their free-market impetus and commitment to family values.
The time for change is now. Regardless of party, all political leaders should recognize that dismantling supply management would be a direct, meaningful step toward making food more affordable for all Canadians, as well as maximizing agricultural chances to expand Canada’s exports. With the rising cost of living pushing more families into food insecurity, we cannot afford to let outdated policies continue to inflate prices, immorally perpetuate waste, and curtail chances for greater growth in Agrifoods.
Dismantling supply management would offer tangible relief to millions of Canadian consumers, particularly low-income families. All other parties should start by killing Bill C-282.
Marco Navarro-Génie is the Vice President of Research at the Frontier Centre for Public Policy
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