The new Comprehensive Economic and Trade Agreement between Canada and the European market should be great news for beef producers in the region, says Chris Israelson.
A Zone 3 delegate with the Alberta Beef Producers (ABP), Israelson says the deal could mean about $600 million per year in sales for the Alberta industry.
“Europe is a high-value market for us,” said Israelson, who ranches in Mountain View County. “So we will now be able to move much more high-value products, loins and steaks and those kinds of cuts.
“It's still going to be a bit of a niche market because the beef we will send there has to be hormone free and not all beef is going to meet that requirement. It's good news for the industry.”
About $6 million to $10 million in Alberta beef is currently sent to Europe each year.
“It is very limited for us to go there right now,” he said.
Asked if the agreement will lead to more animals being raised in Alberta, he said, “That's always a market driven thing. If there is more profitability to raise cattle, there will be more cattle. If we have potential to add value to our Canadian products, we will add cow numbers and population.”
A new beef plant at Balzac, scheduled to open soon, should benefit from the agreement, he said.
“That plant will be really focused and really keyed in to be able to take advantage of these smaller niche markets. This will be a huge benefit for the local plant,” he said.
The Comprehensive Economic and Trade Agreement must still be ratified by European governments.
"We will now be able to move much more high-value products, loins and steaks and those kinds of cuts."Chris IsraelsonAlberta Beef Producers delegate
