CANADA: Greater Danger

Canada's outbreak of foot-and-mouth disease is more menacing than ever. The quarantine area that circled only a few Saskatchewan farms at the start (TIME, March 10) has spread out over some 7,000 sq. mi. The latest case was found less than 50 miles from the U.S. border, raising the greatest danger to the U.S. livestock industry since the last U.S. outbreak in 1929. Washington ordered extra inspection patrols into Montana and North Dakota to strengthen the guard against the virus.

With virtually no hope left for early lifting of the U.S. embargo on Canadian meat and livestock, Canada made a costly stop-gap agreement to trade her surplus beef and pork to Britain in exchange for New Zealand meat that she can resell to the U.S. (New Zealand cattle are free of the foot-and-mouth taint.) Canada stands to lose up to $10 million this year on the barter, but it is the only immediate way to clear up the glut of meat on the Canadian market. Domestic meat prices have already sagged, giving consumers a temporary break but signaling trouble ahead for the country's farm economy. Hamburger has dropped in some places from 69¢ to 49¢ a lb., ham from 59¢ to 39¢, roast of beef from $1.15 to 85¢.