Free Riding Lowers Market Returns 5-20%

[forage]

Thanks R.Kaiser I couldn't have said it better myself. Wait a minute , I think I have!
The amount of money abp has collected over the years since its inception have been truly wasted. If they had only save a portion year after year they would have had enough for any fight any issue and have millions left in the bank.
Why are you so touchy F_S once you started posting on this tread you automatically went on the defensive with no mention of your alias what so ever.
Thanks for ear everyone. Back to work. Good luck to all those calving rigth now .

[GaryE]

To avoid any confusion about this response, i would like to offer this disclaimer. My name is Gary Etherington, a cow/calf producer and veterinarian from NE Alberta. I was co-chair of the Beef Industry Alliance and President of Canadian Legacy Partners. I have stepped down from both positions so the opinions given are mine and mine alone
I have been an advocate of an alternative slaughter solution since 2003. The two major plants that harvest 96% of the beef produced in the West are extremely efficient but it is in their business interest to limit differentiation of product as that decreases this efficincy. They also have a well established marketplace in the US and using Canadian cattle to fill their orders continues to work effectively for them and by maintaining a substantial basis, they are able to maintain a profitable margin. There is no need to develop alternative marketing except from the global perspective of their companies.
I have looked to a number of organizations for support in the development of this alternative slaughter option including financially investing in Rancher's Beef and organizing Border Beef which was one of the founding partners in the Spruce Grove Ranchers Meats. Following the demise of both of these, I did approach ABP with a proposal and was referred to the newly formed Cow/Calf committee. I was told to take the proposal through our local zone that fall. This occurred and was passed. The motion was forwarded to the fall meeting of ABP delegates and again passed. The directors however took it upon themselves to disregard this motion and to add insult to injury, proposed the exact motion as if it had been presented by Zone 8 although neither name on the motion are by delegates of Zone 8. One of those names was yours Rob and that is why I believe your claim to democracy is laughable.
Last year at about this time, we had a round table discussion with the Minister of Agriculture. A number of groups were represented including BIA. ACFA, Feeder Association, WSGA and ABP We would have had concensus on the concept of developing an incubator for the purpose of creation of beef value chain products except for the representatives of ABP. Today's government may perceive ABP as representatives of the beef producers in this province but I certainly don't.
Hopefully by being burried deep in this chain, those that are still reading will get a better picture of the negative influence that ABP has on the change that needs to occur within the beef industry. If we continue to support the current framework, we will continue to produce commodity beef and will be at the mercy of the cattle cycle. Today, the cow/calf sector is being rewarded. The feedlot margins will continue to erode until that capacity is rationalized and the packers will dictate the terms. They will probably even get the ABP to lobby government for them for additional dollars until slaughter numbers are restored.

[rkaiser]

One minor addition to an awesome post Gary. Basis only involves cattle that are purchased by the two packers and not cattle they own. Boxed beef going from Canada to the USA is not discounted much by border issues and transportation is minimal as North South trade balances East West.

As well; this basis can be adjusted at any time with customers that play by their rules. Thus support from some of the major players in the industry.

This formula has worked well for the two big packers for years and how can anyone blame them for awesome business manipulation and the aid of the ABP/CCA boys. Many of whom have deals struck with the packers that are not exposed.

Only new export markets from a new group have the opportunity to upset this wonderful little apple cart, being pushed along by ABP/CCA.