The federal government plans to invest up to $3 million in B.C.’s beef industry to help it develop new marketing opportunities and further help farmers boost profits in a challenging sector.
The funds from Ottawa’s $500 million AgriFlexibility Fund can be used for a number of projects ranging from trade missions to emerging markets to producer education, new product development, branding and consumer education programs.
It will complement the $2 million investment the provincial government announced in May to fund projects recommended by B.C.’s Ranching Task Force that include domestic and international market development and investments in research aimed at improving profitability for the competitive industry.
B.C.’s beef sector has continue to struggle over the past six years due to global factors, many of which are beyond its control. From the world recession, a high Canadian dollar, rising feed and energy prices and country of origin labelling requirements in the U.S. to the bovine spongiform encephalopathy (BSE) scare, many ranchers have had to rely on non-farm income or asset sales to remain in business.
Since 1996, the size of B.C.’s beef cow herd has continued to decline to 212,000 in 2009, from 273,000, further diminishing the viability of a sector that employs an estimated 8,700 people and contributes more than $250 million to B.C.’s economy.
The taskforce report noted, “Although there are ranches in B.C. that continue to have positive net operating incomes due to having low levels of debt, all ranches in B.C., large or small, are struggling to meet their costs of production and maintain ranch infrastructure. It is time for difficult decisions for a sector with an aging demographic.”