BSE in Canada: Were Economic Losses to the Beef Industry Covered by Government Compensation?

The objectives of this paper are (a) to estimate the overall losses to the beef industry in Canada from BSE by identifying and estimating the increased costs and reduced revenues to the industry from May 2003 to September 2007; and (b) to assess the extent to which compensation paid by federal and provincial governments to producers of cattle and beef products covered these losses. The analysis suggests that in aggregate, the industry in Canada was fully indemnified through federal and provincial assistance programs, but the gains or losses to various sectors within the beef industry cannot be identified.