Mixed Grades for U.S.-Canada Cattle Trade

BOZEMAN - Mar 3/05 - SNS -- Montana State University agricultural economists worry that re-opening the U.S. border to imports of Canadian cattle will drive down prices for U.S. cattle producers.

They believe that unless opening the U.S. to imports prompts countries such as Japan and South Korea to re-open their markets to imports of U.S. beef, feeder cattle prices in Montana could drop $2.11 per hundredweight and U.S. fed steers by $1.22 per hundredweight.

MSU economist Gary Brester said Japan and South Korea terminated imports of Canadian beef in May 2003. After the U.S. BSE discovery in December 2003, they also stopped importing U.S. beef, and have not yet allowed imports from either the United States or Canada.

"Reopening the U.S.-Canada border to live cattle trade would likely be a net reduction in the U.S. feeder cattle prices," says Brester. He based his comments on studies by himself, John Marsh and Vincent Smith, a team of MSU agricultural economists who have traced cattle and beef price impacts caused by the U.S.-Canada border closings.

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