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Livestock Market Interruption Strategy

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Livestock Market Interruption Strategy Livestock Market Interruption Strategy Final Report of the Livestock Market Interruption Strategy Steering Committee April 2016 The Livestock Market Interruption Strategy has been developed through collaboration and efforts of many governments and organizations, participating as active members of the Steering Committee or sub- working groups. Steering Committee Members Agriculture and Agri-Food Canada Dairy Farmers of Canada Alberta Ministry of Agriculture and Forestry Maple Leaf Foods Inc. Animal Nutrition Association of Canada Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec Canadian Cattlemen’s Association Manitoba Agriculture, Food and Rural Development Canadian Food Inspection Agency National Cattle Feeders’ Association Canadian Renderer’s Association Ontario Ministry of Agriculture, Food and Rural Affairs Cargill Inc. Saskatchewan Ministry of Agriculture Canadian Pork Council Members of sub-working groups on humane depopulation, carcass disposal, emergency management and communications Agriculture and Agri-Food Canada Manitoba Agriculture, Food and Rural Development Alberta Ministry of Agriculture and Forestry Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec British Columbia Ministry of Agriculture National Cattle Feeders’ Association Canadian Cattlemen’s Association New Brunswick Ministry of Agriculture, Aquaculture and Fisheries Canadian Food Inspection Agency Nova Scotia Department of Agriculture Canadian Pork Council Ontario Ministry of Agriculture, Food and Rural Affairs Canadian Renderer’s Association Prince Edward Island Department of Agriculture and Fisheries Composting Council of Canada Saskatchewan Ministry of Agriculture Dairy Farmers of Canada Contents Executive Summary ................................................................................................................... 1 I. Introduction ............................................................................................................................. 7 II. Approach and Activities .........................................................................................................11 i. Emergency Management Governance ................................................................................12 ii. Communications ................................................................................................................12 iii. Domestic Consumption .....................................................................................................13 iv. Resumption of International Trade ....................................................................................13 v. Industry Transition .............................................................................................................13 vi. Marketing Options .............................................................................................................14 vii. Humane Depopulation and Carcass Disposal ..................................................................14 viii. Overarching Challenges ..................................................................................................15 III. Findings and Achievements .................................................................................................16 i. Governance, Roles and Responsibilities .............................................................................16 Outcomes and Next Steps .................................................................................................22 ii. Communications ................................................................................................................23 Roles and Responsibilities .................................................................................................25 Outcomes and Next Steps .................................................................................................26 iii. Industry Transition and Decision Support ..........................................................................27 Industry Transition .............................................................................................................27 Impact Modelling Tool ........................................................................................................29 Humane Depopulation (HD) and Carcass Disposal (CD) ...................................................30 Outcomes and Next Steps .................................................................................................36 iv. Markets .............................................................................................................................38 Trade Resumption .............................................................................................................38 Maintaining Domestic Markets ...........................................................................................41 Orderly Movement/Marketing .............................................................................................42 Outcomes and Next Steps .................................................................................................42 IV. Lessons Learned .................................................................................................................44 V. Recommendations ................................................................................................................46 communications and governance ..........................................................................................46 Validation and evergreening ..................................................................................................46 Proposed future activities ......................................................................................................46 VI. End Note: LMIS as part of the broader Agricultural Emergency Management Framework ...48 Annex A: The Livestock Market Interruption Strategy and Guide ..............................................49 Annex B: Summary of Slaughter Facility Challenges ................................................................57 Annex C: Executive Summary of Final Report of an Investigation of Humane Depopulation and Carcass Disposal Methods, and Development of Plans and Procedures for a Livestock Market Interruption Strategy .................................................................................................................58 Methods ................................................................................................................................61 Rates and capacity ................................................................................................................63 Bibliography ..............................................................................................................................65 Executive Summary With an economically significant sector, preparedness for emergencies is critical As one of the world’s largest agricultural producers, Canada possesses a large and competitive livestock sector, particularly for cattle and hogs, which is highly integrated within a North American market. As a result, the Canadian livestock industry is highly dependent on continued access to international markets, with nearly 70% of hogs and pork products and approximately 50% of cattle and beef products being exported. Given the importance of the sector and a number of inter-related economic, social and environmental considerations at play, large scale interruptions to the livestock market could have broad impacts for the livestock sector beyond the capacity of governments and industry to effectively manage with existing preparations (e.g., beyond what current policies and programs are designed to mitigate). The experience of the 2003 discovery of bovine spongiform encephalopathy (BSE), which resulted in the immediate closure of international markets for Canadian cattle and beef (the impacts of which rippled throughout the entire value chain), highlighted the need for greater preparedness across players. Moreover, the potential discovery of foot and mouth disease (FMD) and subsequent border closures would be estimated to have a net economic impact of around $58 billion (in 2014 dollars), forcing the industry to quickly adjust its structure and production levels to meet only domestic demand. This would result in a sudden and dramatic decline in commodity prices and a significant surplus of healthy animals that would need to be depopulated and disposed of. Recognizing these risks, in 2012, Federal, Provincial and Territorial (FPT) Assistant Deputy Ministers of Agriculture agreed on the need to engage industry in developing a Livestock Market Interruption Strategy (LMIS). The development of the strategy was to enhance industry and government preparedness to deal with the impacts of a market interruption, outside of the regulatory response already in place (e.g., working to deal with the market impacts of a border closure, recognizing the role of animal health authorities in dealing with the actual disease that caused the border closure). As such, the LMIS is intended to be a national strategy supported by two policy objectives: • Managing industry transition, ensuring a functioning domestic market, including through herd management, carcass disposal and transition assistance measures. • Facilitating the resumption of international trade and maintaining domestic consumption. It is the impact to healthy animals that provides the focus of the Livestock Market
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