Managing a Border Threat: BSE and COOL Effects on the Canadian Beef Industry

The Canadian cattle and beef industry incurred severe losses when exports to the United States were halted after the May 2003 discovery of bovine spongiform encephalopathy in a Canadian cow. Although trade in cattle and beef products slowly returned to normal, the potential for upheaval returned when country of origin labeling became mandatory in March 2009. Industry observers fear segregation costs could result in refusal of Canadian cattle by American beef packers. As a result, some industry stakeholders are promoting an expansion of slaughter capacity. This teaching case study focuses on the decision of whether to support such an initiative.