CORINNE the Chomp! MOWRY PRINCE CORINNE, EX(92)2E Owned by Clarence and Kenneth Mowry, Roaring Spring, PA THE NEW WORLD’S RECORD COW FOR MILK PRODUCTION Total Days Total Milk 24 * 3847 49 7910 77 12741 97 16025 105 17257 143 23153 171 27293 206 32230 222 34360 234 35873 244 37076 262 39211 299 ' 43506 305 44175 - 319 45730 335 47529 343 48830 365 50759 Pennfield is proud fo have been part of this outstanding World's Record. penntield feeds 711 Rohrerstown Road, Lancaster, PA 17604 Lancaster 299-2561 • York 854-7867 • Red Lion 244-4511 May we chat with you soon about your herd’s feeding program? Limits Set on Imports from Canada On November 16, President Gerald R. Ford signed a proclamation authorizing the imposition of quotas on U.S. imports of cattle, hogs, beef, veal, and pork from Canada. This action was taken under Section 252 (a) of the Trade Expansion Act of 1962, which permits the President to impose duties or other import restrictions on the products of any foreign country “maintaining un justifiable import restric tions against U.S. agricultural products which impair the value if com mitments made to the United States, oppress the com merce of the United States, or prevent the expansion of trade on a mutually ad vantageous basis.” I# " w The restrictive action on Canadian livestock products has been taken in an effort to obtain the removal of quotas imposed by Canada last August on U.S. slaughter cattle, beef, and veal moving to the Canadian market. 4 u 4 The U.S. quota restrictions will limit the volume of cattle, hogs, beef, veal, and pork that can enter the United States from Canada to the following aggregate quantities, retroactive to August 12, 1974: Beef cattle: 17,000 head (TSUS items 100.40, 100.43, 100.45, 100.53, and 100.55.) Beef and veal, fresh, chilled, frozen, prepared, or preserved: 17 million pounds. (TSUS items 106.10 and 107.60). Hogs: 50,000 head. (TSUS) 100.85). Pork, fresh, chilled, frozen: 36 million pounds. (TSUS items 106.40, 107.30, and 107.35). For 30 days after the imposition of the quota, however, entries under the quota will be limited to one twelfth of the respective quota quantity specified for each product. According to U.S. Census Bureau statistics, U.S. imports from Canada in these categories during August and September were as follows: Beef cattle, 7,186 Lancaster Farming, Saturday, Pec. 14,1974—5 head; beef and veal, 5.998 million pounds; hogs, 23,096 head; and pork, 7.495 million pounds. It is hoped that U.S. retaliatory action will lead to the early removal of the Canadian quotas and re establish the free trade movements in livestock and livestock products that have traditionally characterized both markets. The U.S. action should not significantly affect U.S. retail meat prices because imports of these livestock products from Canada ac count for less than one-half of 1 percent of total U.S. consumption of red meat. Prior to the proclamation, public hearings were held on October > 25, 1974, in Washington, D.C. to allow all interested parties to present all facts and views on the economic impact of the proposed U.S. action. Testimony by U.S. livestock industry representatives generally favored taking retaliatory measures against Canadian shipments of cattle, beef, veal, hogs, and pork. The U.S. action was precipitated by the im position of quotas on slaughter cattle weighing over 700 pounds, beef, and veal by Canada on August 12, 1974. These quotas, based on 1969-73 average imports, restrict U.S. shipments to Canada to 82,835 head of slaughter cattle and 17,899 million pounds of beef and veal for the 12-month period ending August 11, 1975. In 1973, Canada imported 216,000 head of cattle from the United States and 35 million pounds of beef. Therefore, the Canadian quotas will reduce imports of U.S. beef and veal during the 12-month period by almost 50 percent below 1973 levels, and at the same time, cut cattle imports from the United States by slightly over 60 percent. Canada’s quotas on im ports of cattle and beef are the most recent in a series of actions over the past year that have interfered with U.S. beef, veal, and cattle exports to Canada. From November 2, 1973, to February 11, 1974, the Canadian Government levied an import surtax on cattle and fresh beef. The surtax was followed by a ban on U.S. livestock and livestock product im ports from April 9, 1974, to August 2, 1974, because the type of import certification procedures demanded by the Canadian Government to prove the absence of diethylstillbestrol (DES) could not be met. When the Canadian Government announced on August 2,1974, that it had accepted a DES certification procedure proposed by the United States, it simultaneously announced that quotas would be ihnposed on cattle, beef, and veal, effective August 12. Thus, since November 1973, each time U.S. negotiators obtained the removal of a Canadian import restriction on cattle and beef, another import restriction was imposed shortly thereafter. Canada maintains that these quota restrictions are needed to protect its new beef stabilization plan, which was announced at the same time as the quotas. Under this scheme, Canada’s beef producers are guaranteed a price of C 545.42 per hundredweight for all cattle graded A, B, and C. Any shortfall in actual market prices is made up by the Canadian Government in the form of a deficiency payment. Implementation of a new beef carcass grading system in late 1972 caused a shift in Canadian production to lower grade cattle with less marbling and fat covering. This helped to create a shortfall in the supply of high-quality beef demanded by the hotel and restaurant trade, which was met largely by increased movement of Choice grade cattle and beef from the United States.