Shares of companies related to the beef industry were hit after the announcement that Bovine spongiform encephalopathy, better known as BSE or mad-cow disease, has been found in Alberta.
The news prompted the United States to quickly issue a ban on all Canadian beef and beef product imports.
The decision by the United States comes at the onset of barbecue season, and could cripple the Canadian beef industry if the border remains closed to imports for long. Canada shipped 373,432 tonnes of beef and veal products to the U.S. in 2002, accounting for about 72 per cent of Canada’s worldwide beef exports, according to the Canada Beef Export Federation.
Canadian beef and veal exports to the U.S. amounted to $1.67-billion last year, or 77 per cent of Canada’s total beef exports.
Shares of meat-packer Maple Leaf Foods Inc. and shippers Canadian Pacific Railway Ltd. and Canadian National Railway all declined. Maple Leaf dropped 31 cents or 3 per cent to $9.74. CP fell 85 cents, or 2.6 per cent, to $31.60. And CNR slid $1.70, or 2.5 per cent, to $67.29. Cara Operations Ltd., which runs Harveys and Swiss Chalet restaurants, lost 7 per cent.
In the United States, shares of Tyson Foods Inc., the largest U.S. beef processor, fell 4.8 per cent while McDonald's Corp. slumped 6.6 per cent. Wendy's Interational Inc. shares fell 6.6 per cent, Outback Steakhouse stock lost 3.2 per cent.
© The Globe and Mail
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