International Environmental Regulations, Domestic Policy and the Saskatchewan Beef Feeding Industry

Abstract

This thesis is based on the ideas for beef supply chains envisioned by the creators of Canada's new Agricultural Policy Framework (APF). These supply chains will be designed to guarantee food safety and food that is produced in an environmentally responsible manner. An ex ante monitoring system and a labeling system are needed for the supply chain to achieve this goal. This thesis examined these possibilities for one link of Canada's beef supply chain, the feedlot sector. Four environmental standards were proposed for three different sized feedlots (10,000, 20,000, and 30,000 head). All of the scenarios had to adhere to provincial regulations and include ex ante monitoring. Environmentally responsible technologies were explored. Manure composting and engineered wetland establishment were some of the processes that were implemented into a feedlot's operations. The presence of an environmentally responsible price premium for beef was considered. The results indicate that the premium was the most critical variable in the analysis. If the premium exists (1.6% per hundredweight) then it will more than compensate for any of the proposed environmental standards. As feedlot size increased, the benefits of implementing environmentally responsible technologies also increased. There were economic benefits to adopting environmentally responsible technologies even in the absence of an environmentally responsible price premium if mature manure markets have been developed.