Free enterprise?

[grassfarmer]

Here is one for all the supporters of "free enterprise" in Alberta. Remember back when producers were seeking Government assistance to set up producer controlled packing plants and were told the AB Government wasn't getting involved in the beef business. No problem funding Cargill to the tune of yet another $3 million dollars to "improve their operational efficiencies"
You can't beat the good old subsidy system.

Check out the press release at:
http://alberta.ca/acn/201012/2970904856DE8-C3F4-6D94-DD0F8A321CE5B79C.html

[kato]

Who'da thought that would ever happen? Why did we not see this coming?

I wish we had those rolling eyes smileys here. I'd slap about 50 of them right here.

[kato]

Ha! I just noticed the headline.

Southern Alberta business works to enhance beef exports to Asia

I guess if you make it sound like a "local" business that makes it better eh? LOL Just little a Mom and Pop outfit who need a hand. Spin doctors, geezz...

Why does a multinational corporation with assets worth more than some countries need to have Canadian taxpayers cut them a cheque to "help them out"?

And Canadian cattle producers are told that if they need some money to "help them out", that they are welcome to apply for a loan?

[Ruken]

Well folks, at first glance i agree with the sentiments that you've expressed. Cargil is about as needful and any of the large oil corps that have gotten their share of Alberta money over the years just to get things going. But, look how much they are getting. $3 million. That's not very much compared to the $42 million they've got committed of their own money. The $3 million is just a kick start to get them going. Also, there are not very many mom and pop shows out there that can commit $42 million into their export projects with as much long term return as this corporation.
The next question is whether the cow calf producer will ever benefit. Well based on the free enterprise model, competition and greed, we will get our share.
Maybe the real question relates to how this will affect the competition. Will they be able to stay competitive to push Cargil to the perverbial edge of breakeven in any of their feedlot cattle purchases...

[Ruken]

Well folks, at first glance i agree with the sentiments that you've expressed. Cargil is about as needful and any of the large oil corps that have gotten their share of Alberta money over the years just to get things going.

But, look how much they are getting. $3 million. That's not very much compared to the $42 million they've got committed of their own money. The $3 million is just a kick start to get them going. Also, there are not very many mom and pop shows out there that can commit $42 million into their export projects with as much long term return as this corporation.

The next question is whether the cow calf producer will ever benefit. Well, based on the free enterprise model, competition and greed, we will get our share.

Maybe the real question relates to how this will affect the competition. Will they be able to stay competitive to push Cargil to the perverbial edge of breakeven in any of their feedlot cattle purchases...

[grassfarmer]

$3 million may not be much to Cargill but it could have started up a smaller scale producer plant. That would have provided competition in the marketplace for live cattle which would help producers. How will this affect the competition - what competition? with only two players in the market there is no competition.

[kato]

OK, so they have already invested 42 million. They would not have done that if they did not see a profit in it. To put it into perspective... someone sees a potential business opportunity that requires $450.00. They spend $420.00 up front. Would getting a grant for $30.00 make any difference in whether or not they went ahead with it? I don't think so. They'd just take the $30.00 and consider it a nice bonus. Not a necessity that decided whether or not the enterprise was worth the effort.

In other words, whether or not Cargill received 3 million would not have made any difference in the business decision to go for more export markets. If there was a profit to be had, it would go ahead regardless.

Now, on the other hand, as I've said again and again, what is the point of opening new export markets unless you make sure there is someone left to supply the beef to send to them? Opening markets is only HALF of the solution. In 2003 we were long on cattle and short on markets. In 2010, we are getting longer on markets, but we are short on beef, and getting shorter by the day. The sell-off is not done yet, not by a long shot.

Nero's fiddling while Rome burns.

Which takes me to the next point. There are parts of Manitoba and Saskatchewan that are literally under water. In Manitoba, the water is so high that the three Shoal Lakes in the interlake have merged into one. Thousands of acres are now flooded. The people who pastured and cut hay on those lands are without feed, without money, and a lot of them are now without cattle. They still have to pay property taxes on this "land", and they are still expected to pay crown land rental fees on it.

Does someone just come up and write them a cheque? No, they do not. The producers and the MCPA started lobbying for AgriRecovery help back in the spring when this all started. They have been literally doing everything but get down on their knees and beg in the streets to get the government to listen. The governments, both provincial and federal kept saying they would get help, but it needed to be "studied" first. So a lot of these people, with no feed, no cash, and no firm answer, had no choice but to sell their herds.

So just before Christmas the big announcement that there would be freight assistance to haul feed and cattle. Fine if you still have your cows, and if you have money to actually buy feed. Other than that, all they were offered were loans. Saskatchewan has yet to even get this far.

I've been talking to a lot of people over this last summer while circulating petitions, and have heard what can only be described as horror stories.

Cattle producers who already have programs that are supposedly designed to step in during disasters have to be reduced to begging to get a payout from them.

While multi-billion dollar international corporations have the government knocking on their doors with cheques.

That's what bothers me about this. Especially when I read the spin that goes with the cheque.