Perillat said prior to the plant closure (Sept. 27), “Canada was exporting 20,000-25,000 metric tons of beef per month and this quickly dropped to 15,000 in the fourth quarter.

Imports then jumped from 16,000-18,000 tons to 21,000-22,000 tons, hence making us a net importer.”

He added that Canadian exports to the U.S. dropped from 15,000-18,000 tons to 10,000-11,000 tons (down 39 percent).

“It was not just U.S. trade that was impacted,” Perillat said. “It was for all countries.”

E. coli contamination in beef products from the XL plant sickened 18 people– no deaths – and led to the largest beef recall in Canadian history last fall.

The initial discovery of the deadly strain 0157:H7 came from a sample taken at the USDA’s border inspection station at Sweetgrass, Montana.

The E. coli 0157:H7 bacteria is commonly found in cattle and poultry, and outbreaks of the disease have been associated with cattle and bovine products, especially hamburger and tenderized cuts of meat.

There have been incidences of contamination in unpasteurized apple juice, radish sprouts, lettuce and potatoes.

Along with unsanitary processing conditions, improper handling, preparation and undercooking of meat led to the toxic effects of the bacteria.

It causes severe diarrhea, often bloody, leading to dehydration. It is sometimes deadly. The very young, elderly and individuals with weak immune systems are most susceptible.

The U.S. Department of Agriculture’s Food Safety and Inspection Service confirmed the positive E. coli test late Sept. 3 and notified the Canadian Food Inspection Agency on Sept. 4.

Three follow-up tests between Sept. 4 and Sept. 12 proved positive. The CFIA began its inspection of XL Foods on Sept. 13 and issued its first product recall Sept. 16.

This was expanded seven times by Sept. 25. On Sept. 27, the plant was ordered to stop slaughter operations and marketing of all beef.

“It was quite a change in numbers,” said Ted Haney, an Alberta cattle producer and former president of the Canada Beef Export Federation.

“It went from 4,000 head a day to zero. That was 8,000 tons a week. There was no real ability to backfill.”

Canada has two other major cattle slaughterhouses, one at High River, Alberta, and another in Ontario.

“In the short term, we’re thankful for beef coming in from the U.S., Mexico, Argentina and Uruguay,” Haney said.

The situation set up a short-term problem for Canada, he said. The question of Canadian beef safety was addressed with long-term clients and consumers who had to be reassured that the product was safe and competitive.

Large-scale clients such as Walmart, Costco and Loblaw Cos., Canada’s largest food retailer, have loyalty to Canadian beef, Haney added.

“The industry really has a pretty good handle on E. coli unless someone screws up,” said Dick Raths, a Montana veterinarian and chairman of the Montana Stockgrowers Association’s cattle health committee, a position he has held for more than 20 years.

He suggested that labor issues and pending ownership changes may have contributed to the lack of attention to detail in the processing and handling at the plant.

From his perspective, Raths said there are other concerns for the beef industry on both sides of the 49th Parallel.

At a December meeting of the Academy of Veterinary Consultants, Raths said a Cargill executive expressed more concern about Salmonella contamination appearing in meat products in the southern states, especially Texas and Arizona.

The FSIS is constantly testing products, said Gary Hamel, bureau chief of the meat inspection service of the Montana Department of Livestock, which is not responsible for cross-border testing.

He said since the E. coli incidents in September, the FSIS has enhanced the testing of products coming from Canada and that additional technicians had been assigned to the task.

Requests for comment from the FSIS congressional and public affairs staff in Washington, D.C. were not returned.

In October, the international meat processor JBS took control of the XL Foods plant in Brooks with an option to purchase, which it exercised in mid-January.

JBS also has an option to buy XL slaughter facilities in Calgary; Omaha, Nebraska, and Nampa, Idaho. Repeated requests for comment from Cameron Bruett, JBS spokesman, went unanswered.

The Canadian Food Inspection Agency restored the plant’s operating license on Oct. 23 and it was allowed to resume exports of beef products to the U.S. in December.

“They are still not back at full production,” said Haney in a mid-March interview, “but volume is steadily increasing.” He said the takeover by JBS is “a very positive” development for the Canadian beef industry.

JBS SA is a Brazil-based company involved in the food processing sector, primarily engaged in animal slaughtering, cold storage of beef, production and sale of meat, meat byproducts and canned foods.

Its food processing business is divided into beef, pork and chicken segments. In the past decade, it has rapidly expanded its presence worldwide.

Haney said the Canadian industry needs to reassess its export mandate in that in recent years its sale of beef to the U.S. has dropped significantly.

In 2011, exports to the U.S. were up 21 percent but in 2012, dropped by 12 percent. That decline “cannot be explained by the closure of one plant for one quarter,” he said.

Haney envisions JBS will lead Canada back into the world market in a vigorous manner.

In mid-February, AgCanada announced a review of the E. coli outbreak and resulting recalls. The review will look at how well CFIA performed and why tainted meat was distributed and sold to customers.

A panel of experts has been announced and will provide a report with recommendations for improved safety.

The announcement by AgCanada said CFIA inspectors issued six warnings to XL Foods about conditions in the plant between January 2012 and when the plant was shut down in September.

The agency said all the problems cited were dealt with before the first cases of E. coli were found in beef produced at the plant.

The recall involved millions of pounds of beef packaged in more than 2,000 different products across Canada and in many U.S. states. 

Jim Gransbery is the retired agriculture reporter at The Billings (Mont.) Gazette. He is now a freelancer based in Montana.