Friday, January 25, 2013

CPI- Consumer Price Index



            Globalization of the world has led to the development of world market where both agricultural and manufactured products are sold. The world market serves as the common ground where all countries of the world converge for conducting business. In order for the countries to produce enough goods and sell the surplus, they must be favored by geographical, climatic and technological conditions. With regard to global agricultural market, Canada has been the leading producer of beef for a long time. The geographical location of Canada and the prevailing environmental and climatic conditions favor the survival of beef cattle.
            For over a period of more than 300 years, Canadians have mastered the art of beef farming that they use in feeding the population and for export purposes. Canadian farm records reveal that there are about 15 million cattle and calves in the country. Cattle rearing forms the basic backbone of the Canadian economy and the farmers solely depend of beef farming for their livelihood. Canada is located in the vast northern part of America. The country being the second largest in the world has rugged terrain that does not support crop farming. In addition, findings about the country show that the country experiences extremely cold temperatures that do not allow survival of crops and vegetation. Therefore, the government of Canada has invested heavily in the construction of beef processing firms and in the legalization of beef movement across borders. During extreme cold winter climate, the beef animals and their calves are kept under ventilated houses. The Canadians use the cold winter as a natural cause of eliminating livestock diseases and pests. It has been established that pests and disease causing organisms cannot survive during winter. Hence, they are killed by the adverse weather conditions while the beef cattle are kept in safe houses.
Size and structure of beef processing industry in Canada
            The propagators of economic principles claim that open market leads to increased competition in the market. This economic principle has enabled the development of the Canadian beef industries. Because of the rise in competition from local companies and international companies, Canada government and the private sector has employed appropriate measure to rectify improvement measures in their industries. These spontaneous improvements have resulted in increased meat quality. The size of beef industry in Canada is relatively large and this industry provides the farmers with ready cash for their daily transactions. The industry is composed of 5.3 million beef cattle. The findings shows 70% of these animals are calves ready to be slaughtered for processing. Beef farming forms the backbone of the Canadian economy because the economy excess of $20 billion to the economy.
            The signing of free trade agreement between Canada and other nations like United States and Mexico has continued to ensure that quality of processed products are not compromised. Beef industry in the country of Canada has been well developed to meet the external meat demands from other countries through exports. Therefore, the Canadian government earns foreign exchange through export of processed beef. The country slaughters 3.5 million cattle annually to provide beef for the local and international market.
            Because of the high number of animals in the Canadian ranches, the Canadian government has adopted the idea of branding all the animals in the industry for easier access and monitoring. The Canadian nationals have integrated the federal requirement that all the animals must have ids. The use of animal id is extremely vital during animal surveillance and monitoring of contagious diseases. Canadian beef industry has nationwide network that work towards detection and ratification of animal diseases across all the beef farming districts. Commercial beef for processing is produced by slaughtering mature animals. Commercial meat processing in Canada occurs in the eastern and western borders.
Consumption of product
            Canada is suited for the production of beef in large quantities. Therefore, surplus beef production are sold to other countries like the united states and the European union markets.