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Mad cows are not COOL Paul Beingessner
(Wednesday, July 23, 2003 -- CropChoice guest commentary) -- A group of teenagers from a small town in Saskatchewan were the talk of
western Canada last week when they took to the city streets to try to do
something about the mad cow crisis. Not yet used to just hanging around
the local coffee shop and carping, these teen activists did some
research into the fast food industry in Canada.
The research told them that fast food outlets in western Canada often do
not use Canadian beef exclusively, or even at all. Their next step was
to protest at some of the burger joints in Regina and Moose Jaw. The
group felt that if they could convince these restaurants to use only
Canadian beef, it would be a small but real step toward improving the
situation of farmers and feedlot owners unable to sell their production
to the relatively small domestic market.
They were surprisingly successful. A number of fast food chains agreed
to switch to exclusively Canadian beef. One admitted that it had been
using a mixture of beef from 3 countries. Another chain with numerous
outlets in Canada was quoted as saying it did not use any Canadian beef
in its burgers and beef sandwiches. Canadians, of course, are blithely
unaware of all this.
In the nationalistic fervor that arises when a country's farm sector is
unfairly bloodied, it is possible that some Canadian consumers will
follow the lead of the students who began the protest. They might, for a
short time, watch for some indication that the restaurant they choose is
doing its bit for farmers. A few of the more socially conscious might
make it a cause for some time, but the truth is that most consumers
don't know and really don't care where their food comes from.
Let's face it. Wealthier consumers buy food based on appearance, fashion
and taste. The poor buy on price. Unfortunate as it is, only a few worry
about such incidentals as nutrition and where the food was produced.
All of which brings me to Country of Origin Labeling or COOL. This is a
concept that is currently fighting for its life in the American
governmental process. COOL would require fresh and frozen agricultural
products sold in most retail outlets to carry a label designating its
country of origin. To qualify as an American product, meat would have to
come from animals that are born, raised in and slaughtered in the U.S.
Much of the justification for COOL says that if consumers were given a
choice, they would prefer to purchase American. While this may be true
for some folks, I suspect that people will still continue mainly to buy
on appearance, taste, fashion and price.
The real effect of COOL will be on food processors, like the massive
packing plants, and on feedlots. Given the huge nature of these
enterprises, the act of keeping track of the origin of their meat will
pose a real problem. If packers are going to kill and process Canadian
beef, they will likely have to segregate it somehow on the plant floor.
If this proves to be a major hassle, they would simply refuse to
purchase meat raised in countries like Canada or Mexico. At any rate,
it will add cost to the finished product - a cost that will have to be
absorbed somewhere.
Feedlots might find themselves in a similar quandary. Right now, many
American cattle feeders reach into Canada to purchase calves and feeder
cattle, especially when the Canadian dollar is low. Having to track
these cattle in the feedlot will add costs to American feeders and
farmers. This would result in reduced demand for Canadian cattle and
increased prices for those in the U.S.
The demand for COOL in the U.S. is driven by the root of the problem of
farmers everywhere - inadequate returns for their product. Some
consumers will react to a "buy American" campaign, but it is
questionable how many. The real effect will be on sourcing animals by
feeders and packers. Since Canada is the biggest foreign supplier of
meat and animals to the U.S., the biggest potential impact would be
here. But, I repeat, it will not be because of the consumer. I suspect
all but the most fervently nationalistic American will think that
Canadian beef is pretty much the same as American beef. In fact, it may
even get branded as a superior product.
All of this does nothing to deal with the real problems in the meat
industry. These include the monopoly of a few packers and their ability
to control prices through captive supplies; the mixing of meat literally
from across the world into massive lots, and the attending health
problems that have resulted; land prices driven up by speculators and
wealthy urbanites; and consumers that are poorly educated about their
food and choose convenience over nutrition.
(c) Paul Beingessner (306) 868-4734 phone 868-2009 fax | |
