OTTAWA, (Feb. 18, 2005) — Beef exports from Canada plummeted more than half the amount of 2002, according to a new report from Statistics Canada.

While it’s no secret the beef industry has taken a financial beating since the U.S. closed its border in response to a case of bovine spongiform encephalopathy (BSE) in an Alberta cow May 2003, the Stats Can report offers some hard numbers on the toll the 20-month mad cow crisis has had on related industries.

Cattle and beef exports in 2004 totalled $1.9 billion — less than half the amount recorded in 2002. Officials put total industry losses at around $7 billion.

The report says not only have beef workers and cattle farmers had to grapple with severely depressed sales, but also the cost of maintaining a glut of animals on feedlots. With the largest market in the world closed off, the Canadian national herd inflated to a record 15.1 million head as of January ’05.

The Stats Can report comes three weeks before the U.S. is scheduled lift the ban and reopen the border back to live cattle shipments on March 7.

Originally, the U.S. Department of Agriculture pledged it would allow live cattle younger than 30 months and all beef and boxed meat shipments. However, while the Bush Administration recently confirmed it’s on track to allow the younger cattle, it has given-in to U.S. anti-trade groups and delayed beef imports from cattle over 30 months.

U.S. government officials are being pressured by various interests since two more mad cows were found back-to-back in Alberta in December 2004 and early January. Ranchers, for example, have vowed to fight any liberalized border policy, while other groups dependent on Canadian beef such as slaughterhouses have demanded the Bush Administration remove all trade barriers.

While some estimates show that between 700,000 and 900,000 young cows will cross the border over the next year, there still isn’t expected to be a mad dash for the U.S. border right away. Canadian beef haulers say there simply aren’t enough livestock drivers, and many truckers will not risk gearing up until they’re confident the overhanging threat of future restrictions has passed.

One of the few industry bright spots, according to the report, was a boost for slaughterhouses. With exports held back, there were 15.7 per cent more cattle killed domestically last year than in 2002.

— with files from Canadian Press