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Mad Cow Chaos in Canada: Was It Just Bad Luck or Did Government Policies Play a Role?

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  • Danny G. Le Roy
  • K.K. Klein

Abstract

The authors here argue that government policies helped to bring about a boom in the Canadian beef industry, but these policies also contributed to the industry's vulnerable structure, which then led to financial chaos with the discovery of BSE in Alberta in 2003. The paper describes the genesis of the problem, the impact of the discovery of BSE, the responses of the federal and provincial governments, and the exacerbating effects of protectionism in foreign markets. The authors highlight key changes that must occur if Canadian beef is to compete successfully in the international marketplace over the long term.

Suggested Citation

  • Danny G. Le Roy & K.K. Klein, 2005. "Mad Cow Chaos in Canada: Was It Just Bad Luck or Did Government Policies Play a Role?," Canadian Public Policy, University of Toronto Press, vol. 31(4), pages 381-400, December.
    • Handle: RePEc:cpp:issued:v:31:y:2005:i:4:p:381-400
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    References listed on IDEAS

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    1. Unknown, 2005. "North American Agrifood Market Integration: Situation and Perspectives," 2004 NAAMIC Workshop I: North American Agrifood Market Integration: Current Situation and Perspectives 252450, North American Agrifood Market Integration Consortium (NAAMIC).
    2. Kerr, W.A. & Fox, G. & Hobbs, J.E., 1991. "Regional Implications of Compensatory Freight Rates for Prairie Grains and Oilseeds," Papers 3-91, Gouvernement du Canada - Agriculture Canada.
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    1. Weerahewa, Jeevika & Meilke, Karl D. & Le Roy, Danny G., 2008. "An Economic Assessment of the BSE Crisis in Canada: Impact of Border Closure and BSE Recovery Programs," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(1), pages 1-26.
    2. Le Roy, Danny G. & Klein, Kurt K. & Klvacek, Tatiana, 2006. "The Losses in the Beef Sector in Canada From BSE," Commissioned Papers 24161, Canadian Agricultural Trade Policy Research Network.
    3. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    4. Ding, Yulian & Veeman, Michele M. & Adamowicz, Wiktor L., 2009. "BSE and the Dynamics of Beef Consumption: Influences of Habit and Trust," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49284, Agricultural and Applied Economics Association.
    5. Jones, Kevin Edson & Davidson, Debra J., 2014. "Adapting to food safety crises: Interpreting success and failure in the Canadian response to BSE," Food Policy, Elsevier, vol. 49(P1), pages 250-258.
    6. Stéphane McLachlan & Melisa Yestrau, 2009. "From the ground up: holistic management and grassroots rural adaptation to bovine spongiform encephalopathy across western Canada," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(4), pages 299-316, April.
    7. Clark, J. Stephen & Cechura, Lukas & Berhanu, Adugna, 2011. "BSE Disease Outbreaks, Structural Change and Market Power in the Canadian Beef Industry," Working Papers 114097, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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