Tyson Stops Buying Canadian Cattle

Tyson Foods, Inc. is one of the world’s largest meat processors and marketers of beef,pork, and chicken. I recently read several articles online stating that Tyson will no longer be purchasing Canadian cattle for the U.S. beef plants. The company announced that the change was due to the U.S. country-of-origin labeling rules which require labels to be placed on packages that indicate where the animal was born, raised, and slaughtered. However, Tyson will continue to buy Canadian-born animals sent to U.S. feedlots.

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Since Tyson will no longer be purchasing Canadian cattle, the company will experience a decrease in costs. The new rules would have increased costs because they entail additional requirements such as product codes and production breaks. Also, a Tyson spokesperson said that they do not have enough warehouse space to separate, categorize, and label products accordingly to the COOL requirements. The rule is designed to help the consumer during their purchasing decision.

Canada and Mexico are currently challenging the country-of-origin labeling rules before the World Trade Organization. They are claiming that it is a U.S. trade barrier.
Tyson is the third-largest buyer of Canadian cattle. Weekly, Tyson purchases roughly 3,000 cattle from Canada. What does this mean for our nation’s exports? Analysts predict that our nation’s exports will most likely decline more than 150,000 head a year

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This decision will come into effect starting November 1st. I believe this will have a chain effect on everyone from consumers to cow-calf producers, not to mention the direct effect on the Canadian beef industry. What are your thoughts and opinions on this topic? How is this going to affect you personally?