CANADA: Cattle Crisis

Canada's $2 billion livestock industry faced a major crisis: an outbreak of the dread foot-and-mouth disease, first in Canadian history, was discovered on the cattle ranges of Saskatchewan. An hour after the disease was reported, the U.S. clamped an embargo on Canadian meats and livestock, shutting off Canada's $100 million-a-year trade south of the border. Eastern Canadian provinces banned livestock shipments from the prairies. Business slumped at Western packing houses, and wholesale beef prices were driven down sharply.

The foot-and-mouth plague slipped into Canada in spite of elaborate quarantine precautions to prevent its entry from Europe or Mexico, the nearest infected...

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