Madam Chair, we are having a very good debate tonight. It is certainly frustrating to so many people who are probably watching this, as farmers back home are looking at a very desperate situation.
It is difficult to believe that until May 2003 our farm community in the beef and dairy sector were doing quite well. Then lo and behold, one lowly animal was brought to slaughter. Of the probably 15 million cattle we have in this country, one cow went to market and it was found that that cow had BSE. With that, it entirely changed the outlook of our beef production in this country.
We know that in terms of changing the Crow business back in the early 1990s, the west especially developed a large feedlot industry. We know that until the period of May 2003 that most beef farmers producing quality A beef would probably get between $1.70 and $1.80 per pound.
I would like to point out that in our agricultural community, we have done very well in trying to identify an animal that would be brought to market, in terms of where that animal was, what it was fed, and how it arrived there, because back in the 1990s we brought in an identification system by which cattle were tagged. When a cow went to market, it was very easy for the packing plant to determine the history of that animal.
So in terms of the work that our Department of Agriculture and our producers have done over the last 10 years, we have done an excellent job in identifying beef production. But lo and behold, we found that the Americans decided to close their market. We have trouble trying to reason why the Americans would do that when in fact about 80% of our cattle that was leaving this country was going to the American market.
We also have to realize that in terms of BSE, along with another disease that was prevalent in parts of Europe called Johne's, it had reached proportions, especially in the United Kingdom, where a serious look had to be taken at the livestock industry. The British at that time, back in the 1990s, decided they had to have a major cull to destroy a lot of animals that had been fed certain foodstuffs.
The Americans, looking at their markets in terms of Asia, were afraid that they would have trouble selling American beef to the Japanese, Korean and other Asian markets. That may justify to them why they did that to us. Our own cattle industry, which was producing excellent beef, and our dairy industry, which was selling good genetics not only to the United States but to Mexico and to other countries, were all affected by the American ban that began back in May and June of 2003.
We had a previous debate on this subject in the House and we brought out some excellent points. With those points, our government has made certain changes in terms of our livestock industry. It has worked hard with producers and with provincial governments. In fact, our federal government has put nearly $2 billion into this problem already.
However, tonight as we address the issue we know full well that even though we have put a lot of money into it, there are still farmers like David Whelton out in Pokeshaw, New Brunswick, whom I know very well, who has trouble at his farm in trying to meet the demands that the banks and others are putting on his own livelihood. As we address this issue, we realize that across this country there are many people, like the constituent in Acadie--Bathurst, who are in grave circumstances as a result of the BSE problems.
I would suggest that the matter, in terms of opening the markets, especially the American market, has been a serious problem, one that our minister has spent a lot of time with. Both our previous minister and the present Minister of Agriculture and Agri-Food have worked with the Americans. They have talked to the American secretary of agriculture. They have also worked with Asia in trying to get markets in Korea and Japan and other places.
Today we know, as we look at this livestock industry, that more things have to be done. We know that there has to be increased slaughter capacity. In fact, if we do not increase our capacity and find markets for our beef, then we will find that a growing number of livestock back at the farm level will get older and older and will eventually have to be dealt with.
One of the members tonight talked about the price of beef and the fact that consumers are paying what he called an exorbitant price for beef while at the same time farmers generally do very well today to get $1.30 for hot rail grade A quality beef. We are told in terms of economics that two things are happening. First of all we are dealing with a situation where we do not have enough slaughter capacity but Canadian consumers are demanding more beef. As a result, in terms of the two forces pushing together, the Canadian consumer is paying too much for the meat he is buying for his daily table.
I would suggest that unless we develop a major culling program in this country to cut back on our inventory of animals over 30 months of age, many of them getting older, in fact older yesterday than they are today, we in fact will be facing disaster in terms of the livestock industry.
I know it is a very difficult thing to talk in terms of a cull. The British have done that very extensively. It would improve the genetics in our livestock herds and would offer our farmers an opportunity to develop our market, which would meet the supply that they are offering to the Canadian consumer.
We have had a good debate. I certainly hope I will get some questions on what I have said. We have had a number of programs and all of them have worked a little, but the situation has to be addressed in terms of the producer, the provincial governments and our own department, which has worked quite extensively to try to find a solution to this problem.