Canadian livestock producers are hailing a World Trade Organization ruling against United States country of origin food labelling regulations as a major win for their industry.

A WTO dispute panel last week said COOL unfairly discriminates against Canadian live cattle and hogs sold into the U.S.

In a decision released Nov. 18, the panel unanimously found that COOL "is inconsistent with the United States' WTO obligations" by according "less favourable treatment to imported Canadian cattle and hogs than to like domestic products."

Dennis Laycraft, Canadian Cattlemen's Association executive vice-president, calls it a landmark ruling.

"It certainly puts a mark in the ground that you cannot unfairly treat animals imported into your country," Laycraft says.

The panel was responding to a challenge to COOL by Canada and Mexico.

The ruling does not actually strike down COOL itself. But it will require the U.S. to rework the rule in such a way so as not to discriminate against Canadian cattle and hogs, says Laycraft.

Jurgen Preugschas, Canadian Pork Council chair, described the ruling as a victory which "vindicates our objections."

Implemented in 2008, the rule requires U.S. retailers to label beef, pork and other foods according to their country of origin.

The measure forces U.S. packers and wholesalers to segregate animals and meat in order to comply with the rule, thus increasing their costs. Many packing plants simply refuse to import Canadian hogs and cattle. Those who do often discount prices to compensate for their higher costs.

As a result, Canada's hog and cattle farmers have lost hundreds of millions of dollars in lost sales and lower prices.

Laycraft says the negative impact on cattle prices has been anywhere between $30 and $120 a head, depending on market conditions.

The Canadian Pork Council says weanling exports between 2007 and 2010 declined by 30 per cent in volume and at least $5 to $10 per animal in value. In Ontario alone, live hog exports to the U.S. fell by nearly 60 per cent during that time.

The trade restrictions resulting from COOL have added to the problems of a livestock industry already suffering from a combination of depressed markets, rising costs, a strong Canadian dollar and, in the case of cattle producers, the after-effects of BSE.

The panel ruling marks an important step on the road to recovery for a troubled industry, says federal agriculture minister Gerry Ritz.

The U.S. has 60 days to appeal the ruling. A statement from the office of the U.S. Trade Representative says the agency is "considering all options, including appealing the panel's decision."

If there is an appeal, a final outcome could occur in late 2012, Laycraft says.

FCC Senior Agriculture Economist J.P. Gervais takes a look at current global economic trends and how they impact Canadian agriculture.

Watch more FCC learning videos on our multimedia page 

Young farmers at either end of the country form this year's Outstanding Young Farmers team in Canada.

Annemarie and Kevin Klippenstein of Klippers Organic Acres in Cawston, B.C. and dairy farmers Geoff and Jennifer Bishop of Round Hill, N.S. were named Canada's Outstanding Young Farmers at the recent OYF gathering in Brandon, Man.

While representing two different parts of the country, the couples also bring different backgrounds to their farming.

The Klippensteins started their farm 11 years ago with five acres. They've steadily expanded their organic orchard and market garden to the current 40 acres. Meanwhile, the Bishops are third generation farmers, operating the farm Geoff's grandfather started in 1970 when he immigrated from England. Since then, the farm has grown from a lone cow to a 150 cow Holstein herd.

The Klippensteins started their business with the intent to sell everything they produced at Vancouver-area farmers markets. But they've diversified to include value-added fruit products and summer and winter Community Supported Agriculture box programs, giving them a year-round income.

They also operate a gift certificate program, where consumers can purchase gift certificates at the beginning of the year and exchange for produce through the season.

Klippers Organic Acres was the first organic farm to have an Environmental Farm Plan. Kevin is also chair of the Organic Farming Institute of B.C. and runs an on-farm apprenticeship program, providing accommodation and training for up to 10 apprentices a year. At any given time, they also employ up to eight people from a program called Willing Workers on Organic Farms.

"We feel there’s a need for young farmers and we have a successful model to show them," Kevin says.

The Bishops met when they were students at the Nova Scotia Agricultural College and after graduation, Geoff worked on dairy farms in New Zealand and England before returning home to farm. With a clear focus on goals and innovation, Geoff and Jennifer have made continuous improvements to their operation and their community.

When he began farming, Geoff set out short-term goals to improve herd genetics and feeding systems to increase overall milk production. A new dairy barn and milking facility was then added to make room for up to 200 cows in the milking herd.

Energy conservation was high on the list for the new barn, resulting in a fabric structure with natural lighting, ventilation and geo-thermally heated floors. The newest on-farm innovation is a soybean extruder to press oil out of raw beans. The solid byproduct can be fed to the cows and the oil for feed mix or as fuel. The Bishops are also exploring the construction of a biogas facility to produce their own on-farm energy.

Canada’s Outstanding Young Farmers program is an annual competition to recognize farmers that exemplify excellence in their profession and to promote the tremendous contribution of agriculture. The competition is open to participants 18 to 39 years of age who make the majority of their income from on-farm sources. Participants are selected from seven regions across Canada, with two national winners chosen each year.

Nova Scotia meat producers are concerned with a report recently released by the province's auditor general raising concerns about slaughterhouses and meat processing plant audits.

"We found that departmental audits...are not being done with regularity or consistency," said Auditor General Jacques Lapointe in a media briefing. "And, there is little enforcement of compliance...when problems are discovered."

The provinces’ meat producers fear the report will erode confidence in local products.

"For producers, it seems like another hill to climb up in terms of public confidence," says Nova Scotia Cattle Producers Chair John Tilley. "For beef producers, it leaves a bit of a shadow over the industry. Times have been tough and this is like another slap up the side of the head you wish you didn't have."

Provincially-inspected facilities require an inspector to be present whenever animals are being slaughtered.

While Lapointe's report notes that "animal inspections are completed as required", it found deficiencies in monthly audit inspections and their follow-up.

That finding surprised poultry producer John Duynisveld, who has an on-farm processing plant.

"We have a monthly audit -- it's more than an audit, really -- we have a dialogue with our inspectors," Says Duynisveld. "When we first started, as our production increased we didn't have enough water hoses. That was a deficiency that was easy to correct. There was good follow-up and a conversation with the inspectors. They make sure we know what we need to do and follow up to make sure it's done."

Tilley says the auditor general's report took his members by surprise. And while he's never heard any concerns about meat inspection in the province, he feels the province needs to implement Lapointe's recommendations.

"Auditors general have more credibility than the governments they often criticize. When they report, we tend to think there's something really wrong. In this case, it could create a perceptual problem," he says.

For the beef industry to expand, Tilley says, it's important the public know local beef is safe.

"We need to grow our own, finish our own and respond to the green agenda of food miles," Tilley says. "If that's going to happen in the future, there can't be any doubt in the minds of consumers about the quality of meat and health and safety. The industry has a lot to gain if these worries of the auditor general's can be put to bed. Maybe in a strange kind of way, there's a bit of an opportunity here to step up and showcase the response."

Duynisveld agrees.

"When you do direct marketing, if someone gets sick, you're done," he says. "And, a lot of people using provincially inspected facilities in this province do direct marketing. We rely on having a healthy, high-quality product and our inspections help us deliver that."

Agriculture Minister John MacDonell has said his department will implement all 16 of the auditor's recommendations by summer.

Mark Wales, an Elgin County horticulture producer, is the newly elected president of the Ontario Federation of Agriculture.

Wales beat rival Don McCabe of Lambton County by just one vote (129-128) on the second ballot in the race for top spot of Ontario’s largest general farm organization, which has a membership of 38,000. Both candidates were federation vice-presidents.

Wales has experience particularly in on-farm labour issues, environmental issues and in working on high-profile program development with the province. That's including Ontario’s risk management program, and the agricultural and agri-business portion of the province’s all-sector "Open for Business" legislation review.

That effort was dedicated to cutting impediments to business development and reforming legislation that gets in industry’s way. The province entrusted the federation to gather opinions and advice from farmers and agri-business across Ontario.

Wales says such initiatives put farmers in a proactive position, close to the decision-making process in government.

"We need to be able to see legislation and legislative ideas before they get written, to save ourselves wasting years solving problems that should never have happened in the first place," he says.

Alberta Agriculture will soon release a revised version of its popular Cowbytes ration balancing program for cattle.

According to Patrick Ramsey, beef specialist with the Livestock Business Development Branch, the user-friendly software helps producers fine-tune their feeding programs. That way, they have the chance to maximize the benefits of combining their own feed with the most cost effective volume of supplementary feeds.

Ramsey says many producers over-feed their cattle. Cowbytes helps adjust the feeding regime to reduce costs while meeting or exceeding production and profitability targets. He says most producers can find at least $1,000 in feed savings by reducing unnecessary feed costs and substituting less costly alternatives.

New this year is a yardage calculator. Since many producers tend to underestimate the true costs of custom feeding, Ramsey says this new module provides a tool to give users a true picture of the actual cost per head per day.

With the program, users specify the type of animal, including dry cows, cows after calving or feeders. Feed rations are then selected from a feed sheet based on average Alberta values. Ramsey notes the program allows input of a feed test analysis of homegrown feed for optimal combination with supplements such as salt, minerals and vitamins.

Feed requirements are provided based on National Research Council recommendations adjusted for Western Canadian conditions. Ramsey says the program has been developed in close consultation with Saskatchewan Agriculture and is available to anyone.

Once the balanced ration is calculated, total inventory needs for the winter can be determined to ensure adequate feed supplies are available, and to decide on whether to buy additional feed or reduce herd size.

The program provides an analysis of total cost per head per day. Users can maximize returns by looking at various "what if" scenarios. By playing with input values of alternative feeds and byproducts from the grain industry, producers can aim for maximum cost savings coupled with the most efficient ration for either homegrown or purchased feed.

Upcoming seminars are scheduled for late November and early December at locations across the province. For more information or to arrange a group demonstration contact the Ag-Info Centre at 310-FARM (toll-free in Alberta). Software cost has not yet been set.

The organization representing 18,000 pea, lentil, chickpea and bean growers in Saskatchewan is refocusing.

Saskatchewan Pulse Growers has named Carl Potts as its new executive director. He has more than a decade of experience in the grain industry, including the past five years at Pulse Canada as the director of market access and trade policy. He is well versed on free trade agreements, import regulations, trade policy and market development.

"The organization is a respected leader in the Canadian and global pulse industry," Potts says. "I am passionate about this sector and believe pulses have a tremendous opportunity for continued growth in consumers' diets and the business plans of growers."

Potts will be working with a revamped producer-elected board of directors. Three experienced directors are not seeking re-election this month. The remaining four directors all have less than two years experience on the SPG Board.

Voting packages were mailed to registered Saskatchewan pulse producers in early November. The ballots must be received by the returning officer no later than Dec. 2. The election results will be announced in mid-December.

Canadian hemp producers have received funding to increase their marketing abroad.

The Canadian Hemp Trade Alliance will use the $55,000 received through the federal AgriMarketing Program to promote hemp to international markets. Specifically, the group says it will promote the high quality of Canadian hemp. This will include placing the Canada Brand and new CHTA logo on promotional materials as well as a trade show booth. This investment will enable the CHTA to increase participation in key trade shows.

"These are projects that support the growth of the hemp sector, a sector with tremendous range of market opportunities encompassing green, healthy living, from food to biofibres," says Kim Shukla, executive director of the CHTA.

In 2010, exports of hemp seed and hemp products were valued at more than $10 million. That's an increase of about 200 per cent from 2007.

To find out more about the AgriMarketing program, visit: www.agr.gc.ca/agrimarketing.

World equity and commodity markets continue their process of widespread deterioration this week, lending significant trickle down price pressure to all of the major grain and oilseed markets. But there are some niche markets that continue to hold up.

Edible beans
Edible bean prices in southern Manitoba remain at some of their highest levels ever, but those high prices and a lack of uncontracted supplies mean that nobody is actually buying or selling in the current environment.

Exports are down to a trickle. If someone were to enter the market, prices for most edible beans would be found in the low to mid 40 cents per pound, with kidney, cranberry, pink and other exotic beans in the 50 cents per pound range.

There are so few unpriced beans as most growers priced the majority of their product at harvest time.

The high prices and short supplies will likely cause Canada to lose measure of market share internationally, but domestically, there are likely a few varieties that are very tight. While North American end users are covered for the time being, eventually those varieties that are in tight supply could see an increase in price. We'll find out which ones are lacking in volume and those might run on us further. However, varieties where the supplies are sufficient will either stay steady in price or edge lower.

With some bean varieties likely sold out before the end of the year, the price becomes a non-issue with attention turning to new crop production. There's no doubt that we'll plant more beans, it's a matter of will we plant enough to fill our needs. It'll be interesting to see if growers are willing to plant based on this year's price, or whether they'll need a new crop contract. Edible beans ended up as a very profitable option for those who grew the crop this year, which may encourage more plantings in 2012.

Chickpeas
Growers should not expect Prairie chickpea prices to climb any further before the end of 2011 from their current level. In fact, values may start to fade beginning in early 2012. I suspect we are at the high point as we move through the Christmas period.

A lack of global supply has been the driving force in firm Western Canadian chickpea prices. Poor crops in Turkey and Australia have accounted for some of the tight global supply.

An early fall frost in Saskatchewan tightened the Prairie chickpea supply, and the frost in the region pushed both the chickpea yield and quality down, adding some price support.

While current global chickpea supplies are very compact, global demand is very solid, with much of the demand for Western Canadian chickpeas coming from Europe, South America, the Middle East and North Africa.

However, the plateau for Prairie chickpea prices may be about to come to an end heading into 2012. As Canada heads into winter, other countries will be boosting world supply, with chickpea crops in Argentina, Mexico, and India to be harvested within the next four months. Argentina's crop is due at the end of November, while Mexico's will come in February and India's in March.

Higher projected yields and better quality crops from those countries will push overall prices down for Prairie chickpeas.

Elevator bids for chickpeas in Western Canada are currently as high as 57 cents per pound. That's unchanged from a week ago but 0.5 cents lower than a month ago, when the price was at its highest level for the year.

From the PFCanada perspective, research conducted a month ago recommended selling all chickpeas - any class, any size - except for what is needed for 2012 seed. A short global crop got the market to where it is and while price can stay high and firm for a while, current prices cannot be expected to be indefinitely sustained.

Only those that must buy larger calibre sizings will, but with the situation eventually evolving into a demand-hole as users anticipate access to next year’s cheaper supply.

It won’t be what Canada does, rather about what other kabuli suppliers like Mexico, India, Turkey do. Respective crop availability starts generally late winter and early spring, so I’m guessing importers will choose to anticipate better supplies are coming by early in the New Year. High price should promote supply expansion.

Regardless, guessing when and from how high is not important. What is important is having none left to sell when the market eventually turns lower.

Mike Jubinville of Pro Farmer Canada offers information on commodity markets and marketing strategies. Call 204-654-4290 or visit www.pfcanada.com to find out more about his services.