Canada resumes beef exports to China, cattle supply remains low

FILE: Cattle crowd around a feeder on the Perepelkin family farm near Leslieville, Alta. THE CANADIAN PRESS/Jeff McIntosh

Canada is resuming beef exports to China after a years-long ban that shut down a major overseas market, a move some Alberta producers say comes at a critical time as national cattle supplies remain low and beef prices stay high.

The ban was imposed in late 2021 after an atypical case of bovine spongiform encephalopathy (BSE), commonly known as mad cow disease, was detected on an Alberta farm.

“It’s always good news when a new market is made available to us,” said John Smith, who operates Plateau Cattle Co., near Nanton, Alta.

“As we can see with the world’s geopolitical landscape, tariffs on, tariffs off, I think it’s great to have increased market access across the world.”

On a sunny afternoon at his ranch, Smith watched his cattle graze calmly, largely unaffected by the global trade decisions shaping their future.

Some of those animals, Smith said, will eventually be sold to large processors, with the beef destined for markets both near and far, including China.

Smith said China fills a specific niche for Canadian producers by purchasing cuts that are less in demand domestically.

“Having a place for those cuts to go does nothing but improve the economics for cow calf producers, feedlot operators and packers,” he said.

Before the ban, Canadian beef exports to China hit nearly $200 million per year.

Industry experts say exports could eventually return to pre ban levels, but rebuilding the market will take time.

The Canadian Cattle Association says large processors could begin shipping beef to China within weeks, though moving significant volumes will be slower because of limited supply.

“We do have very tight cattle numbers in both Canada and the United States,” said Dennis Laycraft, executive vice president of the association.

“That’s going to limit the overall exports that we do sell, but we do continue to export large quantities of beef. And we are exporting live cattle. So, we do know that we are able to start to build that market again.”

Herd sizes across Canada have been reduced by prolonged drought, forcing many producers to scale back.

Smith said if rainfall improves and herd numbers begin to recover, demand from China could help keep beef prices steady.

“It’s probably going to hold the price where it is,” he said.

“It might decrease slightly, but trade partners come in and trade partners go.”

For producers, Smith said long term stability is important.

“As producers and feedlot operators, we can actually invest with confidence and increase supply.”

Still, he said, given China’s history of abruptly suspending imports, questions remain about how reliable the market will be over the long term.