OTTAWA (OsterDowJones)--The impact of the BSE fallout on the dairy industry is of increasing concern to dairy producers. During the first few weeks of the export ban, dairy producers remained optimistic that, once the scientific inquiry conducted by the federal government was completed, borders would reopen. That optimism is now gone.

"Dairy producers do not know how or when they will be able to sell their older cows," said Jean Gregoire, President of Dairy Farmers of Canada. "There are too few abattoirs in Canada and they are not taking more animals, especially if they are over 30 months of age, like culled dairy cows. About 70 percent of culled dairy cows were exported to the United States and Mexico before one case of BSE was found in Canada."

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