Press Release

[kato]

CBC picked it up!

http://www.cbc.ca/consumer/story/2009/12/10/consumer-beef-prices.html#socialcomments

The best part about this article is the fact that there are 73 comments, (before mine) and most are supportive.

Everybody get on there and chip in!

[perfecho]

Don't get me wrong, GF, I'm with you....just thought the value of a cull cow with steaks/loin etc, would be closer to double the $1200.(And totally out of whack on a fed steer)
With the positive response to our "local initiative “in this area, I do believe the time is right for the story to get to consumers and commend you for doing so...part of the movement is to get many stories out there.

[kato]

The CBC story is up to 75 comments now. The more comments a story gets the higher the odds that it will be pursued. It was just posted at 2 o'clock this afternoon and already has many more comments than most stories get.

People are interested in this.

This is a chance to get momentum going. If it gets a lot of attention, more stories will follow, and maybe more media will pick up on it.

[wd40]

"Nelson Mandella proved it."

Just a reminder before we start getting stars in our eyes.

Nelson Mandella's world came apart when he got into politics!

[Sawbones]

I have to agree with GF on this one WD40. Producers who have put up their money have been burned and will not be willing investors. I believe they would commit a % of their production with a supply contract but if you're asking for up-front cash, there's very little appetite.
I think that rather than trying to gain market access for our existing packers who aren't interested, we should attract foreign investment into the packing sector.
"But while the Prime Minister’s office is trumpeting its success in securing more freedom on beef exports and the value of Beijing granting Canada approved tourist destination status, the real test of the Canadian government’s new relationship with China could come when a Chinese investor puts in a bid for control of a major Canadian resource asset. Chinese investors already have come calling – notably when China Investment Corp. took a 17% stake in Canadian miner Teck Resources Ltd. in July for $1.5 billion - but an effort at outright ownership of a major Canadian firm could raise more questions.
Wall Street Journal Dec 9,2009
"

[rkaiser]

So ---- no problem agreeing with a lack of cash to buy or build a plant. Even the idea of a govenment loan to build and have that loan paid back with a levy like BIG C suggestedis likely never going to happen.

So how do we keep the foreign investor locked in to the value chain sawbones? I think I know your answer but would like to hear more about it. I'm sure you would agree that simply bringing in one more foreign player to help the other two make another "Pile of Bones" to rememeber our industry by. This new player must be connected with us from pasture to plate to make any kind of difference.

[rkaiser]

Oh yes.... Awsome work GF!!!!! Everyone seems to be hearing about your work. Must have been on quite a few news casts.

[Sawbones]

The dots have to be connected before the first blood is spilled. Contracts need to be in place.
1) Producers need to commit a % of their cattle for a guaranteed price (not necessarily a premium)
2) The packer must agree to guaranteed access and slaughter price for these cattle(may be a documented formula based on price of product or drop)
3) There must be a "Canadian retailer" with exclusive rights to these cattle
4) There must be enough capital to withstand the possibility of one year competitive barrage
These funds will not come from the cattle sector or government. The governments role is to stop pandering to the majors (eg grants for SRM removal or added traceability within the plant) and remove the regulatory burdens in excess of those required for imported meat. By including foreign ownership, we will increase foreign meat sales but it must be tied to profitability for our producers. Just increasing market access will not increase profitability.

[jensend]

one of the dots has to be regulations that allow a processor to follow a reasonable protocol that meets the needs of the customer, foreign or domestic. that dot will be pretty tough to find because that is where the govt can tell you sound science doesn't require what the customer might want. that has been the trump card usda and the packers have been playing every time somebody wanted to diversify markets beyond what tyson and cargill wanted. to listen to brian nilsson he doesn't want any market except for north america because that's the one he has control over. i think we're getting closer to more exports but i'll be very surprised if xl and cargill give up without a darn good fight.

[grassfarmer]

Thanks for all the support folks, especially Kato for spotting the CBC coverage. Strange though that the comment count hasn't gone up much today - I know a couple of people who sent comments last night that haven't appeared yet - what is up with that?

[jensend]

grassfarmer i think what you've done with this press release with solid numbers is exactly what needs to be done. however, it can't be a one shot deal. this issue with real evidence has to be put in front of consumers on a constant basis with a tone that says the producer is on the side of the consumer and we're in this together for the benefit of both. i hope the nfu or someone can put together a campaign organized to get that effect. i think the tone is very important. it's one thing to be aggressive towards the packers but the consumer needs to be approached as an ally and should be educated but not lectured.

[kato]

They have moderators who read the comments before they're posted. Maybe they don't work on the weekend? Keep checking back.

burnt gets credit for finding the story. It's been posted on Ranchers net too.

[grassfarmer]

Actually this campaign was nothing to do with consumers - it was to do with getting the Federal Government to step up to the plate and start governing. I see it as a starting point - to find out what is really going on, then start to act with the hope that they will alter the playing field so that the producer processing plant that Sawbones and others talk of can have a chance of succeeding. I think it is a mistake spending a lot of time and effort trying to build plants/alliances under the current flawed system because they will be run out of business.

This was not really about informing consumers and it would take a smarter man than me to word the press release for such a campaign. Look at the comments on CBC and you will notice there is a good bit of support but also consumers on there who agree with us and would help us - if they get to pocket the share the packer/retailer is currently getting. Our aim is not to sell beef to consumers 50% cheaper and still go out of business ourselves.The retail beef price is about where it should be - maybe a little high but we don't want to talk it down. That is a difficult topic to address. I prefer to address it one customer at a time through our retailing business although I realize that it's going to take a long time for me to convert the whole country at that rate ;o)

[jensend]

i don't think cattlemen alone will convince the federal govt. to do a darn thing. the consumer has more votes and holds more sway with the media and the govt. if we don't address the disconnect between producer and consumer (as you have done with your marketing) nothing will change.

[rkaiser]

The key is remembering that we are not in this alone. Separation has been the Achilles heal of the industry since the beginning of this folly. Some of the folks who ran and still run our industry organisations have a feeling that working with the packer oligopoly is integration, but the folks who work for these organisations do not, and never have thought this way. The only way that they can think is profit for their respective companies, and how can we blame them for that.

We are the cattlemen and women of this country. We need to work together to make our end work. This little group here on agriville has all of the "individuals" with each of their own positive contributions to solve the problem. GF is very right about political corrections to allow something new to happen. But waiting for those changes is not an option. I don't see anyone arguing with Sawbones and personally feel that his group has a very viable solution. Not just another packer player, but one committed to it's suppliers as much as it's suppliers are committed to it.... I would personally love to see producer ownership at the packer level, however, ownership by an outside, integrated player feels better every day.

The story that GF has started could be used as one more step in convincing not only the new packer investor but the retailer in this new value chain as well.

How many head do you have signed up so far Sawbones?