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FEBRUARY 1, 2000

CANADIAN CATTLE EXPORT INDUSTRY VULNERABLE TO FURTHER U.S. IMPORT RESTRICTIONS BECAUSE OF LOOSE TALK BY CWB DIRECTOR



FERINTOSH, Alta. -NFU Region 7 (Alberta) members sent a letter yesterday to Canadian Wheat Board (CWB) CEO Greg Arason and Chair Ken Ritter. That letter raised questions about the conduct of CWB District 2 elected Director James Chatenay. The NFU members objected to Chatenay's continued attacks on the CWB and the effects that such attacks may have for Canadian cattle farmers.

Farmers attending a public meeting sponsored by the Foam Lake, Saskatchewan Marketing Club were dismayed to hear Chatenay again claim that the CWB was not doing a good job for producers and should be made voluntary. "When the Americans hear that, they can argue that an insider is implying that the CWB lowers the price of Canadian grain. That's grounds for another anti-dumping investigation of Canadian cattle feeders," said NFU member and Alberta grain and cattle farmer Dale Fankhannel.

The U.S.-based Ranchers-Cattlemen Action Legal Fund (R-CALF) launched their complaint after Canadian anti-CWB activists, including the Chair of the Alberta Barley Commission, traveled to the United States to air their claims that the CWB "suppressed the price" of grain in Western Canada. R-CALF argued that this "suppression" of grain prices amounted to a subsidy for Canadian cattle feeders.

Finding in favour of Canadian cattle feeders, the U.S. Department of Commerce Trade Panel stated they found no evidence to support the claims made by R-CALF. R-CALF is considering appealing their loss before the U.S. Department of Commerce Trade Panel. "Reckless statements made by people in positions of authority, like Mr. Chatenay, can only serve as an encouragement to further trade actions," said Fankhannel.

Gary Sargent of the Alberta Cattle Commission, said legal costs for defending Canadian interests before the U.S. Trade Panel amounted to almost $6 million (Western Producer, January 6, 2000). Tariffs took an additional $12 to $15 million dollars from farmers.

"As a member of the Board of Directors of the Canadian Wheat Board, Mr. Chatenay's attacks on an institution he is supposed to represent and promote are highly inappropriate. Those attacks on the CWB become destructive as they become known in the United States. Mr. Chatenay's ill-considered actions lend support to those who would restrict access to the U.S. market. This can only further damage the interests of all Canadian farmers, including those who export cattle to the United States," concluded Fankhannel.

James Chatenay and other elected Directors in even-numbered Districts face elections late this year.

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