CCA News: Pleased with market access progress achieved on China Trade Mission.

[AgrivilleAdmin]

CCA pleased with market access progress achieved during China trade mission.

Calgary AB - The Canadian Cattlemen’s Association (CCA) is very pleased that today Agriculture and Agri-Food Minister Gerry Ritz has reached an understanding with his Chinese counterpart to work towards the approval of additional Canadian beef export facilities and the inclusion of bone-in beef and offal from cattle under-thirty-months (UTM) of age as well as live dairy cattle. The announcement comes one day after the positive news from the Government of Canada regarding the resumption of Canadian beef tallow exports to China, and on the final day of the trade mission led by Prime Minister Stephen Harper.



CCA President Travis Toews is part of the official industry delegation accompanying the Prime Minister and Ministers Ritz and International Trade Minister Ed Fast on the trade mission to China. “This has been a very rewarding mission for Canadian cattle and beef producers. The Prime Minister and both Ministers Ritz and Fast truly understand that market access is the lifeblood for our industry and they have been very successful at conveying that message to their Chinese counterparts,” said Toews.



In June 2010, during Chinese President Hu Jintao’s visit to Canada, China committed to restore access for all Canadian beef and beef products. It was expected that the access would be phased in over time with the first two steps being boneless beef from UTM cattle and industrial beef tallow. Since that time, extensive technical negotiations have taken place resulting in the boneless UTM access in May 2011 and the industrial beef tallow access announced yesterday during the Prime Minister’s official trade mission to China.



The understanding reached today sets in motion a process to expand the list of Canadian facilities eligible to export beef to China and to add bone-in UTM beef and offal products plus live dairy cattle. Eventually, it is expected that a further step of including beef from cattle over-thirty-months of age would also be achieved in accordance with the June 2010 commitment and consistent with the scientific standards set by the World Organisation for Animal Health (OIE).



Once full market access is achieved, it is expected that Canadian beef and beef product exports to China could exceed $110 million per year.

[rkaiser]

"Cargill and XL plants in Canada are cleared to ship to China, but to do so, they would have to incur the expense of segregating ractopamine-free cattle from other types,
"So when you're short cattle in the market like we are, why would you go to the effort to chase China? You could sell it into the U.S. and make more money."
said Robert Meijer, president of Calgary-based Canada Beef Inc.,


Once again folks..... Where does Canada Beef Inc. get there operating funds from?????

Yes ---the same government and CCA that is going around slapping themselves on the backs for more open markets.

Markets that will only be used to any significant potential by new companies that are willing and ready to take advantage of these new markets AND pass those potential profits to producers in a trickle down system.

[SADIE]

rkaiser---Thankyou for being the first to respond to this thread. I am going to print off this thread and take this within 20 miles of my ranch by Gardiner Dam and show this to the farmers that were once cow-calf operators and now have sold their entire herds out because of years of frustration they have been through.

The PFRA pastures close to me used to be "tight" for cow-calf pairs and now they are "searching" for patrons to keep their stocking rates up.

What will it take to turn this "DEATH SPIRAL EFFECT" in the beef cow-herd reduction to reverse and come back the other way????

What about some trust in our Canadian ag minister, our Canadian government and all arms of the government like the CCA.

[kato]

I can see someone who's been forced out of business by circumstances beyond their control being bitter every time one of these "boy, am I great" announcements come out. It's like those on the "inside" are having a party, and it's at the expense of those who have been forced out of business. They know full well why prices have improved, and it's because THE CATTLE ARE DISAPPEARING, along with the cow calf producers.

Now that the cow herd is on the way down down down, exactly where is the beef supposed to come from to supply these markets? Do we have excess supply that we can't get rid of? Does the U.S.? No. Neither of us are drowning in an overabundance of beef that has no market. Not any more.

If prices went even higher, which some say they will, can our beef even compete in some of these far off lands? Will a country like China or Korea pay a premium to get it out of Canada? That's what it takes when supply is tight. A premium. If so, then good, but I'd like to see it before I dance in the street with joy.

I doubt if we'll see much beef going overseas under the current way our beef processing sector is set up. What we need is for the way to be made easier for the likes of Randy and Gaucho to be able to step in and fill the need. The odds of the big boys who are doing quite well as things stand going to the effort it takes to move beef to China are slim at best.

We all know we'll probably have a dog in the manger thing going on. "I don't want to send beef to China, but I also don't want anyone else to either." But at the same time .. "Aren't I great for opening up the market??"

Am I cynical this morning? You betcha!

[rkaiser]

A couple points in reply to your post kato.

I do not want to say that the streets of China are paved with gold. Our marketing initiatives --- even though we have been rejected funding by CCA and their precious Legacy fund at this point in time - are moving ahead fast.

The number of investors now showing interest in our project is growing every day with even some of the Alberta Ag folks stepping up before the CCA/ABP boys I must ad.

As for China and premiums. I have photographs of Alberta rib eye steak on the counter in Hong Kong priced at $35.00 per pound. American Angus right beside it for almost $45.00 per pound. If you want to compare a little bit, we stayed in some pretty nice hotels (once again not funded by CCA's precious legacy fund) and when we had to feed ourselves, ate in some pretty nice places. When the conversations were all said and done, the prices where not that different than ate home. So - how many retail food counters do you see in Toronto selling Alberta Rib Eye for $35.00 per pound. Some may argue shipping and my come back to that is how many shipping containers a day are coming from China filled with Walmart shit that will be thrown in the garbage by our throw away society next week. Making room for even more shipping containers that would live to have a back haul trip to Fuzhou.

I mention Fuzhou because the next argument that some may throw at me is that the prices I am quoting are in Hong Kong. First off, the last time I checked, Hong Kong became part of China 15 years ago. And the streets of the wonderful city of Fuzhou where we stayed and built numerous business connections had more Porsche and Mercedes cars than any street in Hong Kong. If you do not think that these wonderful people can not afford to pay a premium for a well marketed Canadian Branded product, you need to take a trip.

One more point on the Canadian thing. I have been challenged by those who say that if the premium was so good, why would Cargill and NB not be going after it. First off the American Multinational genre which NB is included in even though they try mot to be.LOL And then the fact that these two giants are making good money right where they are and have "DEAL" with their American colleagues to keep that captive North American market sealed. Tell me that is NOT the truth.

As for keeping our beef here at home for our wonderful Canadian consumer. They are and will be more than welcome to it Kato, as long as they want to pay us the price we need for our producer owners to survive.

We are doing this folks and there is nothing stopping us. If you choose to naysay or try to drag us down, your choice. If you choose to become vocal and assist us, your choice as well. And as soon as we are ready to go , the big choice will be yours. Work with us at some level or keep padding the pockets of the shrewd business folks who have been profiting off your backs for years.

[rkaiser]

shoot GF and burnt that should have been conversions not conversations. LOL

[grassfarmer]

"What will it take to turn this "DEATH SPIRAL EFFECT"
in the beef cow-herd reduction to reverse and come
back the other way????"

The $1000 for a small steer producers are currently
receiving.

[kato]

Randy, I can't help but think that if you had the same kind of support from our trade people as the "big boys" get, the sky would be the limit.

GF, IMHO, a thousand dollars for a calf probably isn't 2002 prices with inflation factored in. I haven't done the math yet on that, so someone else may have an accurate figure. However, it's a good start.

[SADIE]

grassfarmer

To the former cow-calf producer that has sold off his herd now----I have gone and talked to the immediate neighbors about this very topic. To those that are out and now see a $1000.00 price for a "dumpy little steer"---Those of us on agriville---the survivors might sell off those and "smile" a little bit---a long time coming. But to those now out of the cow business---they are still farmering---they still have grassland---buying in at $1500 or more----they know it is caution time.

Several rural veterinary clinics that I know have done their own serveys to former cow-calf clients and prepared a check list of reasons and "weight" put on each of those reasons on "WHY THEY GOT OUT" "why they are prepared to stay out" and what has to change before they attempt to come back in.

I will save the survey results for a different post for now.

[burnt]

Shoot Randall, conversations, conversions - in an open-minded society, one leads to the other so what does it matter or in what order?

Keep at it there chappy, those big guys are kinda crapping their pants at the idea that someone might actually get a little piece of their pie! May all good providence assist you!

The big press releases about opening new markets does darn little to make up for 7 or 8 years of negative margins unless the packers own your entire operation. In which case it merely means that they will continue to feed you enough to keep from starving but not enough to thrive.

It is amazing how many people are willing to settle for a scrap of trim when they could have a steak, if you'll pardon the analogy . . .