Re-opening the U.S./Canadian Border to Live Cattle and Beef Trade: Estimated Impacts on U.S. Beef Producers

Abstract

In May 2003, Canadian authorities announced that a Canadian cow had tested positive for bovine spongiform encephalopathy (BSE or mad cow disease). Almost at once, the United States and many other countries banned all imports of Canadian cattle and Canadian beef. The consequences for Canadian cattle prices were severe. Export markets accounted for almost 40 percent of Canadian beef production and 30 percent of live cattle sales between 1995 and 2002. As a result, Canadian fed steer prices declined 55 percent from about $US 83/cwt in March of 2003 to about $US 37/cwt in September of 2003.