CCGD: CANADIANS INCREASED BEEF CONSUMPTION AFTER MAD COW SCARE

MARK HAMSTRA

TORONTO -- If U.S. consumers react to the first case of bovine spongiform encephalopathy like their Canadian counterparts did, retailers have nothing to worry about.

After the first Canadian case of BSE, or mad cow disease, was discovered last May, beef consumption in that country actually increased, according to Kim McKinnon, vice president, communications, Canadian Council of Grocery Distributors, which is based here.

"There is an extremely strong support for the beef industry in Canada from consumers," McKinnon told SN last week. "They are very, very supportive of the farmers and the cattlemen, and many grassroot programs erupted to keep beef sales high."

Beef sales in pounds increased in the range of 15% to 25% in the months following the outbreak, she said, although prices fell by 30% to 65% due to an abundance of supply when Canadian beef exports were cut off. Ground beef was widely promoted at about 10 lbs. for C$10, or about 75 U.S. cents per pound.

McKinnon said beef was promoted throughout the country for barbeque tie-ins with both the July 1 Canada Day holiday and for the back-to-school season.

"All retailers advertised great prices and ways to eat beef," she said. "Also, retailers took out huge one-page ads in support of the cattlemen."

Farmers in rural areas were often seen selling beef at bargain prices directly off the backs of their trucks, she said.

She credited the Canadian government with providing clear communication throughout the crisis, which helped retailers take a rational approach to the situation.

"Retailers didn't panic, run for cover, or do anything crazy," she said. "We took a very measured approach, with safety as the No. 1 priority."