Slaughter capacity drops

USdA are sponsoring a high-level round table meeting on June 9 to present the case for reopening the border between the USA and Canada for imports of live cattle. The closure of the Canadian border has led to a number of packers laying off workers at their slaughtering plants. The public forum will bring together government representatives, producers, packers academics and scientists in an attempt to look at the 'cold hard facts' of the economic consequences of the border's closure. Agriculture secretary Mike Johanns said that some of the cattle producers who had benefited from the initial import ban were now wanting to see it lifted as slaughter in the north west and midwest is drying up. If the loss of capacity continues, these growers will be forced to ship their cattle at great expense to feedlots and slaughterhouses further afield. Over in Canada, slaughter capacity is approaching 100,000 per week and packers, with considerable government support, are beginning to see their beef accepted in Asian markets. The Canadian cattle industry claim to have lost nearly $7 billion since the US closed the border two years ago. However, the worst seems to be over. Now the magic figure of 100,000/week is in sight. In the first week in May, Canada slaughtered 88,000 cattle and with expanded capacity due to come on line at a Tyson plant in Alberta and new plants due to open this autumn, capacity should reach around 110,00/week by November. Danny Herron, co-chief executive of Swift & Co, who laid off 800 workers at their slaughter plants in December, said that Swift had been approached by the Canadian government to build a slaughterhouse north of the border. Herron said the company would rather work to open the border than add more capacity to an industry that already has too much. Federally inspected slaughter for the four weeks ended May 21 amounted to an average 646,500. This compares with 682,500 for the same period a year earlier. When it comes to raw hide exports, China once more took first place with 670,500 and Korea was again second with 519,800. Taiwan came third once more with 183,500, and then came Mexico with 109,600. Thailand increased their ranking to fifth with 92,400 followed by Hong Kong who dropped to 81,200. Next came Japan with 39,500 followed by Italy with 33,300. The Dominican Republic was in ninth place with 15,800, bought in a single week. Türkiye purchased 8,600 and Indonesia 8,400. Canada came next with 2,600, Uruguay 1,400 and the UK with a paltry 800. In addition, Italy also took 61,200 calf and kip. In second place, Canada and Indonesia both took 34,200 calf and kip, Hong Kong 22,400 kips, Peru 16,100 calfskins, Portugal was responsible for 12,300 calf and Japan 6,000. Türkiye bought 4,000 kips, Mexico 2,900 kips and Spain 2,000 calf. Hong Kong took the biggest number of wet-blues with 102,400; the Domenican Republic 67,400; Taiwan 49,300; Italy 42,600; China 36,200. In sixth place Korea bought 31,400; Mexico 28,100; Indonesia 16,600; Thailand 9,800; Costa Rica 2,500; Japan 2,000; and Germany 1,000. Wet-blue splits went mainly to Hong Kong with 500,200lb after cancellation of an earlier order for 74,700. Korea took a healthy 500,000lb but China also cancelled 334,800 lb leaving a total of 314,100. Italy took 257,200lb.