Slaughterhouse set to expand

[smcgrath76]

I see the need for C/C to contract
supply in, otherwise you will in the
long run need to kill x number of extra
cattle to fill your market specs. By
working with the C/C guy we can breed
cattle that fit the market, and then
manage them right through to the desired
endpoint. Without a big plant and lots
of markets it is tough to pull off the
strategy of buying all calves (even if
the price is right).

[grassfarmer]

I think we could have all the contracts, agreements, type of genetics, rearing management established by the feedlot and delivered by the c/c guy without the c/c guy owning the plant. I just don't see the need for plant ownership by the c/c level. A little financial incentive on the calves from the feedlot and producers will line up to deliver. This would happen because c/c guys would be working within their realm of comfort. C/C guys balked at a lot of the proposed plant projects because they had no clue how much beef their calves would yield when fattened or what it would be worth (which wasn't helped by some of the consultants who didn't know either)

[Sawbones]

That's entirely the point gf...a little financial incentive and the c/c guy will also run to the majors so for short term gain, the entire chain collapses and we're back to square one. If you're serious, get involved and by making the payment to the plant based on a $25-$30 fee per animal delivered, it's no different than you're already paying..the only difference is at the end of the day, you actually have something to show for your efforts.

[rkaiser]

So - how many cattle have you got committed so far Sawbones? A few more details would be nice but the basics sound pretty damn good to me. It has always astounded me that this industry can be controlled by so very few with a relatively small amount of capital. Could you imagine what a few hundred million would do in the oil industry.... Pretty much squat. But it could buy our industry back and at least give us the opportunity to be responsible and see if we --- the steakholders --- could do a better job than the status quo who are only interested in profit and could care less whether our industry even has enough left to supply our domestic needs.

We have all had ideas on how to raise the cash and none have succeeded. The big boys could not even muster enough in the Balzac project but they were still but a few. The masses are definitely needed. The Beef Initiative Group plan was all about masses, but the masses were divided at the time and our plan to use a government backed loan to build the plant was seen as left wing radical by some tunnel visioned foes. Maybe it's time for one last kick at the proverbial cat. Especially if the investor is waiting, the retailer is interested and government involvement is minimal. I personally trust that if one group has the where with all to get that kind of homework done it will be the group that I believe our Sawbones friend takes part in.

What can we ---- I --- do to help Sawbones?

It's been fun growing our company - but the boys are doin a fine job without the rancher buttin in on store management and sales. We are resigned to the fact that growth will be slow until the recession turns and the other retail boys slow down on the "lost leader" sales of crappy beef. We are in a good position for the turn around when it inevitably comes but our industry as a whole is not.

So should we sit and watch the patients and deep pockets of Cargill and our Canadian/Global Brothers Nillsen pay off. Or do we revive all the good old dreamers from the recent past and support this very intriguing plan that Sawbones has suggested?

[burnt]

rkaiser, you are missed over in the other place you old rascal.