What is in this article?:
- Canada's beef industry may be at a profound tipping point and corrective action is needed if it is going to deliver maximum benefits to producers.
Selected key data in CAPI's report
1. Importance of beef sector
The Canadian beef industry generates over $6 billion in farm gate sales (2011) and represents some 15% of the value of agricultural production.
2. Declining beef trade balance
In 2011, Canada's trade balance in terms of value was $42 million, falling from $1.4 billion in 2002.
3. Domestic beef supply
Canada supplies some 75% of its own market's beef. This number has fallen from 87% in 2005 as imports - from the US - have risen.
4. Differences in the value of the Canada-US beef trade
Canada's beef exports to the US are only 60% of the value of US beef exports to Canada. In 2011, Canadian exports of beef to the US averaged $3.74/kg whereas average beef imports from the US were $6.55/kg.
5. US beef exports beyond Canada vs. Canada beef exports beyond US
US beef exports beyond Canada are up 280% on a value basis since 2005; whereas Canadian exports beyond the US are up 45%. Since 2002, Canada's exports to international markets other than the US were down 3.5% while the US beef industry increased exports to the international market by 51% (excluding shipments to Canada).
6. Importance of US market
On average, 85% of Canada's beef and live cattle exports are destined to one country, the US. On a five year average (2007-2011), Canadian beef and cattle sales to the US were some $2.2 billion (and a combined total of $1.8 billion in 2011).
7. Diversifying export markets
In 2011, 74% of Canada's beef exports (quantity) went to the United States, representing 72% of the total value of Canadian beef exports. In 2002, 78% of Canadian beef exports (quantity) went to the US, representing 83% of the total value.
8. Canada's cow herd
anada's cow herd has declined by 1 million head or 20% since 2005.
9. Beef consumption (Canada)
Per capita beef consumption has declined 10.7% since 2001 and now totals 27.5 kg/capita (carcass equivalent). Pork consumption over that time period has declined by 28% while poultry (chicken, hen and turkey) consumption has increased 3.4%.
10. Beef consumption (globally)
Global poultry consumption has increased 10.3% over the last three years (2008-2011) while beef consumption has declined 3.5%. Among OECD countries, beef consumption is declining. But, among non-OECD countries, consumption is rising.