SASKATCHEWAN TO PRESS FOR NEXT STEPS ON BSE

Saskatchewan will propose next steps for how Canada deals with the BSE situation at the annual meeting of federal, provincial and territorial Ministers of Agriculture in Winnipeg on July 8th, 9th and 10th.

"The Saskatchewan industry is telling me that we need to take further action if our trading partners are not willing to open their borders to our beef," Deputy Premier and Minister of Agriculture, Food and Rural Revitalization Clay Serby said. "There is no reason, based on the science and the issue of food safety, to continue to keep the borders closed."

Canada implemented a thorough science-based investigation into the circumstances surrounding the discovery of a single case of BSE in an Alberta cow in May 2003. An international panel of experts has validated the investigation.

Serby stated that he will raise the following issues with his fellow Ministers:

•The need for additional programming to help the industry cope with the border closure. This includes a maintenance program for cattle on feed and a cash advance program for backgrounders and calves.

•The need to close Canadian borders to beef imports if Canada is unable to export beef. Canada's trading partners cannot expect to keep their borders closed while sending their beef to our markets, especially when we are unable to consume the quantity of beef we currently produce at home.

•The need for Canada to take action on the additional food safety issues raised by the international panel. Clearly, Saskatchewan would prefer that North American jurisdictions work jointly on specific risk materials, traceability, surveillance, utilization of rendered products in animal feeds, and consumer/industry information. Canada is already a North American leader in many of these areas. If borders continue to be closed, the best strategy may be for Canada to take further action on its own.

•The need to diversify our markets. The BSE situation demonstrates our vulnerability when we are very reliant on only a few markets.

Serby noted that Saskatchewan is a trading province, whose economic well-being is strongly linked to fair trade with the rest of the world, and emphasized the need for rules-based trade, utilizing food safety rules based on good science.

"We are an important trading partner for many of the nations that imported our beef before the BSE situation arose, and there is no scientific support for maintaining the border closure now," Serby said. "If the borders remain closed to Canadian beef, trade in other sectors will be negatively impacted as well."

-30-

For More Information, Contact:

Trish Alcorn Agriculture, Food and Rural Revitalization Regina Phone: (306)787-5389