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Last updated on April 16, 2014 at 10:46 EDT

Canada Beef Pleased Import Levy Introduced

July 30, 2013

OTTAWA, July 30, 2013 /CNW/ – Canada Beef and Agriculture Minister Gerry
Ritz announced an amendment to the Beef Cattle Research, Market Development and Promotion Levies Order to include an import levy on beef cattle, beef and beef products. The
import levy will treat importers in the same way as Canadian cattle and
beef purchasers, all paying the equivalent of $1 per head of cattle.

Canada Beef is mandated to promote the marketing and production of beef
cattle, beef and beef products for the purposes of interprovincial,
export and import trade. In order to support its business plan, Canada
Beef is empowered by the Farm Products Agencies Act to impose levies or
charges on persons engaged in the importation of beef cattle, beef or
beef products into Canada.

“These regulations give Canada Beef the right to collect a levy on
imports of beef cattle, beef and beef products, something that has not
been done before on other agricultural products coming into Canada,”
says Canada Beef Chairman Chuck Maclean. “This is a significant step
forward for not only the beef industry but for the Canadian agriculture
sector.”

The levy allows for an equitable treatment between domestic beef
producers and beef importers. Agriculture and Agri-food Canada has
worked very hard with Canada Beef to obtain the information from
Canadian Border Services to enable collection of the levy. Collection
of the levy is estimated to be worth between $600,000 and $800,000
annually, depending on market conditions, and the organization hopes to
be collecting the levy as early as September 2013.

The funds that result from the import levy can be further leveraged with
industry investment, and would create a significant increase to the
funding of marketing, promotion and research for the beef industry.
According to Evaluating the Economic Benefits from the Canadian Beef Check-Off, a study completed in 2010 by Professor John Cranfield of the University
of Guelph, dollars invested in research and marketing for the Canadian
beef sector brought a return on investment of 9:1 for the beef
industry.

“Throughout this process, the Farm Products Council of Canada and the
Minister of Agriculture and Agri-food Canada have been supportive and
of great assistance in helping to achieve Canada Beef’s goal of
enacting the import levy,” says MacLean. “After many years of work, the
industry has finally accomplished the goal of being able to collect the
national levy on imports.”

Canada Beef is the cattle producer-funded and run organization
responsible for domestic and international beef and veal market
development.  It has offices in Canada, Mexico, Japan, Hong Kong,
China, Taiwan and South Korea.  Canada Beef works to foster loyalty to
the Canadian beef brand and build strong relationships with trade
customers and partners.  These efforts increase demand for Canadian
beef and the value producers receive for their cattle.

SOURCE Canada Beef Inc.


Source: PR Newswire