Media Advisor

August 4, 2004

Statement in Response to Yesterday’s Release of

the Alberta Auditor General Report

The following is a statement by Hon. David Kilgour, M.P. for Edmonton-Beaumont and member of the Agriculture Committee in the previous House, in response to the findings of the Alberta Auditor General’s report:

“Yesterday’s report by the Alberta Auditor General confirms the concerns raised by the House of Commons Agriculture Committee when we asked for the books of the major meat packers last spring.  The fact that one segment of the industry, namely Lakeside and Cargill, the large meat packers, nearly tripled their profits while the rest of the industry nearly found itself in extreme – and continuing - financial hardship is both outrageous and contrary to the habit of burden-sharing which Prairie Canadians have long practised.

While the US border remains closed, there is no effective competition on the buying of animals for slaughter.  Cargill and Tyson control both the prices and volume of finished animals coming from feed lots. 

The BSE crisis has highlighted the need for a “made – in - Canada beef policy”, which will in part require additional packing capacity and higher levels of value added production for beef exports.  Unfortunately, new capacity could take up to 18 months to be completed.  An even greater urgency faces the cattle industry this fall because of the under capacity of slaughter houses. 

The federal government must act before the crisis hits the caw calf producers even harder this fall and should immediately develop a program that recognizes their worsening financial crisis.  Cow calf producers in Alberta have been forming organizations to address the under capacity and marketing issues.  I will be meeting with representatives of these organizations between August 11-13, 2004.”

 - 30 -

For more information contact:

Herb Davis

Office of Hon. David Kilgour, M.P.

(613) 995-8695

Kilgour@parl.gc.ca