By Dori Modney

Cost of Coutts blockade adds up; Beef industry calls for resolution

Feb 3, 2022 | 3:55 PM

LETHBRIDGE, AB. — With the disruption at the Coutts border crossing approaching day seven, Canada’s beef industry has serious concerns with supply chain challenges, including the lack of access to feed coming from the U.S. and impacts on cross border movement of cattle and meat products.

Alberta Beef Producers (ABP), the Alberta Cattle Feeders’ Association (ACFA), and the Canadian Cattlemen’s Association (CCA) are calling for a resolution and the restoration of an essential supply chain.

They want to see the blockade resolved safely and effectively for all involved. They point out food and agriculture are deemed an essential service and needed to continue moving supply chains during the pandemic and it’s critical agriculture continues to operate without disruption.

Since the Canadian and American beef industries are highly integrated, every day the industry is unable to move cattle, beef, or access feed puts the entire supply chain at risk. Canadian beef producers are already facing challenging supply issues from access to feed, following the devastating drought conditions in 2021, limited rail access, and trucking shortages.

ACFA Chair, Greg Schmidt, says the transport of beef to cross border consumers is slowing down processing in Canada and creating a backlog at processing facilities, feedlots and farms and ranches. The obstruction is also blocking the growing critical supplies of feed that are needed across western Canada.

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“The unintended consequences of these closures and delays further affect already existing shortages on products like animal feed that have been caused by drought, trade disruptions, and transport issues. Transportation delays can severely impact the beef supply chain from cattle feed to grocery shelves.”

Trevor Lewington, CEO of Economic Development Lethbridge (EDL), reports the economic impact of the blockade is roughy $3 million a day.

“The blockade of an international port of entry and the only 24/7 commercial land crossing into Alberta is a direct threat to the economic well-being of growers, producers, manufacturers and other businesses that rely on the movement of both raw materials in and finished goods out along the CANAMEX corridor. Make no mistake, Lethbridge manufacturing plants will be forced to throttle back or cancel production as supplies run out and frontline workers will lose paid hours and shifts as a direct result.”

According to EDL the transportation, warehousing and logistics sector in Lethbridge creates roughly $310 million in GDP for Lethbridge and employs about 3,000 people. These businesses depend on the free flow of their trucks, people and goods across the border. However, the blockade, has prevented goods from crossing the border or resulted in long delays for products as drivers are rerouted.

Lewington notes Lethbridge manufacturing plants will be forced to throttle back or cancel production, as supplies run out and frontline workers will lose paid hours and shifts as a direct result.