What Happens When Our Power Prices Increase in a Big Way?

[ASRG]

I attended the Keith Wilson/ Joe Anglin meeting at Rocky Mountain House last night.What I heard (backed up by some pretty credible data) made me wonder just how much "value addded" meat products will be processed once food prep companies have to start paying for the AltaLink and ATCO export lines?
When the "upgrades" are all finished (and if they come in on budget) transmission rates, for commercial operations, will drive up the total electricity bill by 300%! Several large food processing companies have testified under oath at the Heartland hearings that if power costs go up that much they will be forced to leave the province for areas that have a better cost structure?
Refrigeration electrical costs make up close to 2/3 of power used in packing plants.
The beef packers claim they operate on a slim margin and huge power increases will drive them into the red! If we loose Cargill and Lakeside XL where will our market lie? Does it make anyone nervous that perhaps they might relocate to the USA if power rates drive them out of Alberta? What happens to the breaking plants when they can't access western Canadian beef and their own refrigeration costs skyrocket?
How will this affect the feeding industry in Alberta? Is this the end of the beef business in Alberta?

[burnt]

Oh don't worry about the packers there chappie! They will get by just fine by paying even less for their "raw product"! And then cry to the government that they still cannot get by without another shot of corporate welfare!

The real threat is that the cattle numbers in Canada get so low that the big packers can no longer source enough cattle to keep their chains full.

While I could not care less if they stay in business, their closure will cause some real pain in the cattle industry until their replacements get up and running to provide a market for our beef and a product to our stores.

The big packers are only an impediment to a prosperous cattle industry in North America.

[Cattleman]

Burnt, just curious what your thoughts are regarding how the big packers' replacements will improve the industry? Or is it related to all the changes that will occur in the supply chain?

[rkaiser]

There were three dogs sitting in front of a meat shop drooling over the steaks hanging in the window front cooler. One was a bankers dog, one was a thief's dog and one dog was owned by one of the Alberta multinational packers.

The bankers dog said, just wait here guys, I will go get some money and we can get ourselves a couple of those steaks.

The thief's dog said, shit guys, there's a rock over there. I'll get us as many steaks as we can carry off in a heartbeat.

The Cargill / Xcel dog said, come on guys, all we have to do is whine to the Alberta Government, ABP, and CCA and they will give us anything that we want.

Don't worry, ASRG, those big dogs ain't going anywhere.

Still think there is room for a new dog however.

[grassfarmer]

The powerline scandal is a big problem for sure but as long as the majority blindly vote PC they will continue to rule as they please.
Burnt, you are rather missing the point - this will affect processors large and small, it will increase the custom processing costs I and every other non-commodity marketer has to pay as well as the large packers. If the big packers decide to leave the country - which they could do by relocating in the US quite easily and continue to access Canadian cattle start up packers to "replace the existing ones" won't be likely. If the existing ones can't pay the power bills how could start up companies that don't get millions of dollars of Government funding? Bill 50 is very bad news for business in Alberta and we must do all in our power to stop it.

[ASRG]

grassfarmer is very correct when he says this goes far beyond two big packers. The industrial users group has testified in the Heartland hearings that they will not be able to continue to operate, in Alberta, under the cost structure the Bill 50 lines will impose on them (with actual figures)? That means a major loss of jobs and an even further increase in electricity costs to businesses and individuals who remain!
Unfortunately most Albertans will have to pay.
On top of that most people don't realize they will be paying some serious dollars through taxes for the carbon capture scheme over the next 40 years....to the tune of over $3 billion a year. Instead of the tarsand and coal fired generation companies paying the price to make their product "green".....it will be you... through increased taxes.
The carbon capture scheme is a scandal that most people haven't woken up to yet. It's coming and it will cost everyone dearly!

[burnt]

Cattleman - Probably wouldn't improve the industry at all, on further thought, unless there were several smaller operations that would improve competition for the supply. Not much chance of that happening.

I guess things are unfolding as they must, all around.

[per]

Jeepers, go away for a day and a good discussion breaks out.

[BTOfarmallll]

Yous heard him Boys & Girls, Kin't Beat The Big Dogs, Might as well Join em'. Rkaiser already did. First one to The Table to get that Steak, He ain't Stupid!!!!!!!!!

[rkaiser]

Three discussions here.

Do we need to stop these bills that will affect all of us - yes.

Will the big packers leave Alberta if the laws are passed - I don't believe they will.

Does B - lame T - he O - ther guy Farmall sell his products to a multinational; and buy his imputs from a multinational? We are not sure. Obviously however, he would rather keep the status quo than start or support something new.