Should Canadian keep selling and trading cattle with the American or just move on to the world market?

Answer 1

Canada is most welcome to trade with whomever they so choose in the world market - except for perhaps some of the rogue states. However, Canada ends up trading about four-fifths of its exports (including beef) with the United States.

Canada ends up trading with its neighbor to the south because that's where the demand is. The United States is a huge beef market in production, consumption, import and export. Canadian cattle is reknown for its leaner, consistent and competitively priced product. The shorter distance also means that rail can keep transportation prices to a minimum. The United States also offers a more stable market with fairly consistent demand compared to smaller markets abroad. A case in point has been the Japanese, who are voracious consumers of high quality beef - but have been boom to bust consumers depending on BSE scars.

The Canadians are welcome to trade on the open market - but that also means they are in for tough competition from the Argentinians, Australians, Europeans and former Soviet Republics.