New market access to Peru for Canadian cattle industry

OTTAWA, ONTARIO - Canadian cattle ranchers and dairy farmers will now benefit from immediate access to the growing Peruvian market, after the Andean nation re-opened its doors to Canadian cattle imports, Agriculture Minister Gerry Ritz announced today.

"Canadian farmers raise the best-quality cattle in the world," said Minister Ritz. "Country by country, market by market, we are diversifying opportunities for Canadian livestock farmers so that their hard work is rewarded with more sales to more consumers around the globe."

"Full cattle access is yet another sign of the growing ties between Canada and Peru that contribute to deepened prosperity for people in both our countries," said International Trade Minister Ed Fast. "Canada-Peru trade relations have strengthened significantly - creating jobs and economic growth - since the Free Trade Agreement entered into force in 2009. Since then, our trade has increased by nearly 50 per cent, which is clear proof that our government's job-creating pro-trade plan is getting results for hardworking Canadians and their families."

Peru is a strong agricultural partner with Canada, not just in cattle imports but also in grains and pulses. Since 2009, Canadian and Peruvian farmers have benefitted from a Free Trade Agreement (FTA). Agri-food exports to Peru increased 42 per cent in the first full year after the implementation of the FTA compared to 2008. Total Canadian agricultural exports to Peru in 2011 were more than $247 million.

"CLGA is pleased that negotiations on a health certificate for the export of live cattle to Peru have come to a successful conclusion. Canada has Free Trade Agreements with both Colombia and Peru so it is no coincidence that we also have live cattle access for these two South American countries," said Rick McRonald, Executive Director of Canadian Livestock Genetics Association (CLGA). "We thank the Government of Canada for their ongoing market access efforts."

Canada Beef and the CLGA estimate the market to be valued at more than $2.5 million in 2012 for the Canadian cattle sector. Canadian exporters are eligible to export to Peru all cattle born after August 1, 2007, with the bulk of expected sales being dairy genetics. Today's announcement is an important step that sets the stage for greater market access for Canada's cattle producers, as well as for beef producers, as efforts continue to restore full beef access to Peru.

"On behalf of the Canadian Beef Breeds Council (CBBC) and its valued members, the organization would like to thank the Government of Canada for its diligent efforts in negotiations on a health certificate for the export of live cattle to Peru," said Brett Campbell, Executive Vice President of CBBC. "Peru has imported a number of purebred beef cattle breeds from Canada as breeding stock and we are most appreciative to the Ministers for once again gaining trade access to this market."

One of the few Latin American countries to have sustained a positive economic growth rate following the 2008 recession, Peru is projected to reach approximately 6 per cent growth in 2012. It becomes the seventh market in Latin America and the Caribbean to re-open to Canadian cattle, following Colombia, Mexico, Panama, Barbados, Bermuda, and Trinidad and Tobago. Exports of cattle to Peru can resume immediately.