In July 2007, Canada's enhanced ruminant feed ban regulations came into effect. These new regulations require the removal and disposal of certain ruminant materials that were previously allowed in the non-ruminant animal feed supply. These requirements impose tremendous ongoing costs and lost revenues to our beef packing sector that are not faced by our American competitors.
In July 2010, the Government of Canada announced a one-year abattoir competitiveness program, offering $31.90 for cattle over 30 months old slaughtered to help maintain a critical slaughter capacity in Canada.
Our second recommendation is that Canada should extend the abattoir competitiveness program until the end of 2011 to offset the cost of the enhanced ruminant feed ban regulations that came into effect in July 2007. The expected federal cost is $25 million per year.