98 



FEEDER CALVES COME 

 SOUTH 



Even the Mexicans Are Losing 



U. S. livestock interests are being affected by the 

 CFTA as well Information contained in a 

 recent report by Ernest Davis, C. Parr Rosson, 

 III, Amy Angel, and Oral Capps, Jr., of Texas 

 A&M entitled, "U.S. Price Impacts of Feeder 

 Cattle Imports From Mexico,* documents the 

 effects of the importation of both Canadian and 

 Mexican feeder cattle on the domestic market. 



While Canada ranks a distant second to Mexico 

 in this area, Canadian gains in the sale of feeder 

 cattle to the U S. were substantial after the 

 CFTA was implemented, showing a 249 percent 

 increase from 1989 to 1990. During that time, 

 Mexican exports increased 44 percent. 



Canadian Feeder Cattle Imports Swell 

 Following Free Trade Agreement 



ThouMrxa ot hud knportad 



Mexico, currently the major power in this 

 market, held an eight-to-one margin over Canada 

 in 1990, the last year for which figures are 

 available. Although that sounds like a 

 commanding lead, it seems to be shrinking 

 rapidly. At one point in the 1980s, the ratio was 

 130 to one in favor of Mexico. 



U.S. Producers Lose $40 Per Head 

 on Feeder Cattle 



Canada's total exports of feeders to the U.S. in 

 the decade of the 1980's was 353,475 head. In 

 1990 ALONE, the total was 158,181 feeder 

 calves. The highest level of annual exports for 

 the decade of the 1980's was 81,111 head in 

 1982. The report goes on to say that the 

 decrease in market prices paid for feeders in the 

 U. S. is .555 percent for every 100,000 head of 

 feeder cattle imported. 



The average 500 lb. feeder calf brought a price 

 of $10230 per cwt. at Amarillo in 1990. Using 

 the Texas A&M figures, the same animal would 

 have brought producers in excess of $1 10.00 per 

 cwt., or an increase in the value of each animal 

 of nearly $40. $40 x 1.42 million imported 

 feeders from Mexico and Canada means that 

 American producers lost $56.8 million dollars to 

 lower prices caused by the importation of feeder 

 cattle. 



AND THIS CANADIAN 

 PIGGY WENT TO 

 MARKET 



Countervailing Duties Keep 

 Canadian Pigs From Flooding U.S. 

 Market 



The National Pork Producers Council (NPPC), 

 working with pork and hog interests in the U. S. 

 has, until a very recent victory, been fighting 

 what can best be described as a strategic retreat 

 from the continuous onslaught of Canadian 

 hogs, pork and pork products, as the Canadians 

 manipulate the CFTA to their advantage. 



Canada subsidizes pork production to the tune of 

 about $18. per hog. Currently that subsidy is 

 offset by countervailing duties which prevent 

 these highly subsidized hogs from flooding U. S. 

 markets. If it were not for these duties 



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