Recall flip side

[ALLFARMER]

The recall is throwing truck loads of product into
the dump. Once the shelves are empty the plant
cleaned and going again allot of cattle are going
to get killed to refill all the shelves.

So for producers such as I selling calves are
prices headed up, down or neutral? The cattle
futures prices fell of the cliff again a couple days
ago but I also see the DOW also is way down.

85 calves to sell in a few weeks....limited feed.

[smcgrath76]

I see a short term hole in the fed
market, as a lot of cattle that are
ready are being booked into US plant.
When that market spike will hit depends
an awful lot on CFIA and XL. Generally
this is still bad as it will make a lot
of folks switch to other protein
options, and will definitely drop the
price in the meat counter. Look for
some super sales at the meat counter
once XL starts shipping again.
Feeder cattle, as still back and it is
hard to tell if they are softening
because of the recall or the feed
situation.
We have lots of feed and will be
backgrounding our calves, but we won't
likely be buying any. It will be
interesting to see if this drops the
bred price (as it has the open and cull
prices).

[ASRG]

They should get it cleaned up pretty quick.
I doubt it will have any impact on calves or yearlings....or at least it shouldn't!
What kind of money do you guys see calves at Oct/Nov?

[SADIE]

smcgrath

This negative action to the beef industry I believe will result in a "drop off" in bred sales this fall.

Time will tell shortly.

[BFW]

I don't see much of a hole developing here. Xl probably has in excess of 100,000 head on feed which are backing up somewhat. Also when this is resolved I am sure they will have to sell some product cheaper just to gain back some of their customers. I am not looking for much of an improvement in fed prices for some time.

[grassfarmer]

Ah, the reality of captive supply . thanks for
reminding us BFW.
Anyone else see the dog-and-pony show on TV
tonight? The Premier dressed up in her blue jeans,
meeting up with those loyal Tory supporters - the
ABP and each chipping in how good and healthy our
cattle are and how we hope that cattle prices don't
suffer too much.
Talk about an industry with Stockholm syndrome!!
Why do we just willingly accept that when anything
goes wrong it will come out of our pockets? This
current issue really should not affect primary
producers very much at all - it's a processor-retailer
problem.
How about the media start by asking some questions
of the Canadian Meat Council, some retail outlets or
retailer organizations, how about asking someone
from the packing sector and heaven forbid how about
going after a Nilsson and see what they have to say
for themselves?
What a joke - the Canadian cattle producer through
levy funding pays a lot of the cost of advertising beef
products, gets a very meagre share of beef returns
yet is the fall guy that automatically has to take the
price hit and stand up for "our industry" in the media
eye.
There is no reason that this problem couldn't be
resolved by the processors and particularly the
retailers taking a cut in their margins. Bullshit that fed
cattle will have to be cheaper and feeder calves
through to bred heifers have to be cheaper.

I still remember the UK BSE disaster period in 1996
when the media fallout was enormous and we were
wondering if people would ever eat beef again. For
the first week the stores halved their beef prices to
move inventory - and it was moving so fast they
couldn't keep the shelves stocked! By the second
week they moved their margins up again, raised the
prices and started screwing the beef producer for the
next decade.

I'd just be embarrassed right now to be an ABP
lackey, sucking up to Redford, standing up for "the
industry" - hypocrites all of them, the Tories too
when they have stood by and cheered on corporate
consolidation that has led to this point.

[ASRG]

It is kind of embarassing that an American inspector found the E coli, and then the CFIA sort of waffled for several days? It is also kind of embarassing that Redford and Olson do these photo ops, saying "Don't worry. Be happy. The beef is safe".....when in fact they don't have a clue because these are federally inspected plants?
I think it should be Gerry Ritz out there explaining what went wrong, how it is going to be cleaned up, and how it won't happen again?

Redford can babble all she wants out on some ranch with some cowboy types, but in reality she can't do a damned thing about the situation! Pure show for the sheeple.

[kato]

I'd like to see whoever's at the top of XL beef go on the air and make a public apology like we heard after the McCain listeria debacle.

Acceptance of responsibility. That's what's needed.

[ALLFARMER]

Kato. Brian Nilsson won't be doing that any time
soon.

1) why take all the blame? No need to make
yourself a (the) target?

2) he wants to lose media coverage & attention
not headline the papers again.

[nicolaas]

is the meat tenderized at the supermarket or at the plant?