Senator Craig, members of the committee, thank you for the opportunity
to speak before your committee on behalf of the Beef Industry in
the state of Idaho. My name is Judy Woodie and I am a cow-calf
producer from Emmett whose family has been in the sheep and cattle business
in the state of Idaho since the late 1800's. As President ,
I represent the 1500 members of the Idaho Cattle Association which
includes producers, feeders, and related businesses.
Our interest in the hearing today is two fold. A lot of
our members are grain growers themselves and they also are the users of
these products. While the lower price of wheat and barley at this
time may be beneficial to our cattle feeders for the use as feed grains,
the low price of cattle is still causing these same feeders to not be able
to turn a profit. It is really hard to stay in the business if you
are losing between $75.00 and $150.00 per head at the time you sell.
The missing element in this situation is pretty simple - markets.
Domestic consumption of Beef has remained relatively stable over the past
few years, while increases in efficiency have increased the supply of Beef.
It used to be as simple as selling excess Beef, or any agricultural commodity,
to one of our world trading partners. But it is not that simple any
more.
Our export marketing situation has hurt us all. The Korean
markets are unable to meet their contracted amount of Beef to the tune
of 5,000 metric tons that was to have been be exported into there from
the United States. Korea was the fourth largest export market for beef
and beef variety meats. In 1997, these exports totaled more than $300 million,
an increase of 18% from 1996. At the same time that export markets
are increasingly difficult to access, we see imports dramatically increasing
- especially from Canada. The vast majority of finished Canadian
cattle, over 86% are imported through western states, like Idaho.
In 1997, there were 25% more finished cattle imported to the U. S. from
Canada than in 1993. I find it fairly ironic that these increases
of imports have hurt the cattle industry during a time when all the trade
experts claim that NAFTA is actually helping the U. S.. We
have hopes that the Asian financial crisis will wane, and Korea will
remain a long term growth market for our products.
While the imports from Canada are still flowing in at a overwhelming
number, the amount of live cattle that are allowed into Canada are being
held at a relatively small number by Canadian regulations. Our President-Elect
from Eastern Idaho tells me that just this last week there were 187 cattle
trucks from Canada that pulled into the Con Agra Plant in Hyrum, Utah loaded
with live cattle for processing. In the past, most of these trucks
came in at night, but now they are coming around the clock. A producer
over in that part of the state reports that he has finished cattle ready
to go to processing, and the plant in Hyrum tells him they can not take
them for three weeks. I guess a little equity is needed.
I know that there is great consternation in the Canadian cattle
industry about the Import labeling language that just went through the
Senate Ag Appropriations process. Some of the talk we have heard
is that they will flood our Northwest feedlots with Feeder Cattle to get
the US Beef designation, or that the processing plants in the Northwest
will close down without the Canadian cattle. My response to the speculation
about Canadian threats - prove it! If elected officials on a local,
state and national basis can't represent the United States, who can?
Senator Craig, I applaud you and the entire delegation for championing
the meat labeling legislation and encourage you to do so with other measures
that will help all of American agriculture.
Thank you for allowing me to testify.