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?

[kato]

I know it won't likely happen, but the McCains have set the bar a lot higher than XL have up to this point. I heard on the news today a sound byte where the Alberta premier said how a number of people have to work together to move forward on this. This included government, our cattle organizations, and producers. I did NOT hear the name XL Beef mentioned.

WHY NOT? This is so wrong on so many levels.

I would like to hold to the belief that there is still some shred of decency left somewhere in this world.In a world where there are some moral standards, it would sound like this...

From XL..

"To the Canadian cattle producers.. We acknowledge that you have provided us with cattle which you have spent much time, energy, and money to raise into being some of the best cattle produced anywhere in the world. We acknowledge that we have not kept our processing standards up to a level that equals the quality of your cattle. We acknowledge that our errors have damaged the reputation of Canadian beef, and we acknowledge that it was at the processing level that it happened.

We acknowledge that Canadian cattle producers have lost, and will lose income as a result of our mistakes.

For our mistakes, we deeply apologize to the Canadian cattle producers and Canadian consumers. We will do what it takes to make things right, and to make sure such problems do not re-occur."

[grassfarmer]

I agree kato, but this kind of shady operator likes to
skulk in the shadows, it's where they feel at home.
You can see by the scope of this recall now that this
was not an isolated incident with one dirty cow going
into the grind and contaminating a batch of ground....
sounds more to me like a filthy plant with no
standards.

Just imagine if Ford has a car recall issue next week
because a piece of the chassis broke due to a fault in
their manufacturing plant. Would everyone
automatically look to the steel manufacturer to make
the apologies and admit that they are going to have
to accept a price reduction for their steel right away?

Then why is it any different for the rancher or feedlot
owner?

[ASRG]

Well just for a second.....forget XL and what kind of scoundrels they might be?
What in the hell was the CFIA doing? They take close to twenty days after the US informs them there is a problem?
They wait a few days after the USDA has decertified the plant? They expose Canadians to possible tainted meat, that the Americans refuse to take?

What is wrong with this picture? Was the "fix" in to clear the coolers?

[grassfarmer]

OK we'll ignore XL for a moment. So you think there
was maybe a fix in to clear the coolers? Who would
that benefit as I'm sure CFIA hadn't much to gain? I'm
thinking X...oops I'm not allowed to mention them.
Any way you look at this it centres around XL Foods
and the Nilssons.
I wonder how their plant in the US is affected?

[kato]

I'm still working on the wording for the CFIA apology.