Thanks, Dennis.
Despite that tradition of transatlantic beef and cattle trade, our access right now is currently very limited for beef. We see the CETA as a very important opportunity to address that scenario. They do have what they refer to as the hormone ban, which is not exactly correct. It's any growth promotants that are used, whether they're hormone implants or beta-agonists, are not allowed.
On top of that, they have a very prohibitively high tariff, with some small tariff rate quota access. We can send 11,500 tonnes at a 20% duty. That's a quota that has existed for a number of years and that we share with the United States. More recently, there has been a new quota negotiated as compensation for the hormone ban. Currently it's sitting at 21,500 tonnes duty-free, and will increase to 48,200 tonnes annually as of August 1. To put those numbers in perspective, Europe is a market that consumes eight million tons of beef per year. So those quotas that we share with other countries are a small drop in the bucket.
We're certainly seeing CETA as the opportunity to get some real tariff access, but also to address a number of technical issues.
You mentioned an outfit in Alberta, and you may have been referring to a cooperative of a number of ranches in western Canada that market their beef through one small processor in Alberta. Really, right now that's the only operating processor in Canada that's approved to export to Europe, for beef anyway. We would really see CETA as needing to recognize the Canadian federal inspection system as equivalent to the European system, so that we can get additional facilities approved.
We have both the technical and the non-tariff. You mentioned GMO feed. GMOs have been an access issue in Europe, but not so much with respect to animal feed. In fact, Europeans are experiencing the same shortages and high cost for livestock feed as we are. Over the last couple of years they have been modifying their regulations related to GMOs, specifically to allow some GMO feed products into their markets. We certainly have not see that as an issue with respect to feeding our livestock here in Canada.