Selling Beef Across State Lines

[farmers_son]

This clip from Animalnet. The ball now is in Canada's court to allow smaller Provincially inspected packing plants to sell interprovincially.


US: Bill would let small meat plants expand
24.oct.07
New York Times
Associated Press
http://www.nytimes.com/aponline/business/AP-Farm-Scene.html?_r=1&oref=slogin
WASHINGTON -- Small meat plants that operate under U.S. state inspection programs might soon be allowed to market their products across state lines for the first time.
The story says that the provision, included Tuesday in the Senate's proposed farm bill, is the result of a compromise reached by a coalition of consumer, labor and farm groups. It comes amid growing concerns about food safety after last month's massive recall of hamburger meat contaminated with E. coli bacteria.
The legislation would create a new, optional inspection program that provides federal oversight of state-inspected facilities that want to ship products across state lines.
Under current law, only federally inspected plants can ship meat and poultry across state lines. Meatpackers in Missouri, Kansas and 25 other states operating under a state inspection system have long complained that the law unfairly restricts sales.
Tom Buis, president of the National Farm Bureau, was quoted as saying, "For too long, small producers have been shut out of markets but will now be able to ship their high-quality products across state lines."
Carol Tucker Foreman of the Consumer Federation of America was quoted as aying the Senate Agriculture Committee compromise "safeguards public health" by requiring small meat plants to meet all federal inspection requirements before shipping their products in interstate commerce, adding, "This law reinforces the principle that the first priority of meat and poultry inspection is protecting us and our families from adulterated food products."
The story notes that processing plants with up to 25 employees would be eligible to participate in the program and companies would be required to use a federal stamp of inspection.
Roger Johnson, president of the National Association of State Departments of Agriculture, was quoted as saying, "The present system is simply unfair and wrong. Meat and poultry products from nearly 40 countries can be shipped and sold anywhere in the United States, while state-inspected products are limited to their state of origin."

[PureCountry]

I'm crossing my fingers for sure.

[rkaiser]

Just like every other policy regarding beef trade, it seems that we have been conditioned to "follow the Americans". And this is mostly due to being afraid to stir things up for their two multinational companies that run the industry in this country.

Why do we not already have laws in place to trade beef from provincial plants across provincial borders? Follow the money - this is trade that the federal packers currently use and don't want to give up.

Why are we going to wait for the Americans to move in to the E.U. with beef without hormonal growth promotants? Because this nice little Canadian captive market for the multinational packers does not need something as free as this, and our industry leadership is afraid to screw with the Americans.

Why don't we test for BSE? Same reason. If you don't believe me, ask the chairman of ABP. I think that he would answer something like this "We can't deny that we live next to the largest and most lucrative beef market in the world and we must listen to what they want." Would this be your answer to the question of provincial trade - E.U. trade or Asian BSE tested trade farmer_son?

Cargill and Tyson not only have a major say in USDA and American beef trade policy - They control it with fear here in Canada.

[farmers_son]

I understand that Ranchers Beef was selling hormone free beef to Europe. Japan has changed its own position re BSE testing and is no longer testing animals aged 20 months or younger.

See thread in Agriville:

http://www.agri-ville.com/cgi-bin/forums/viewThread.cgi?1189703517

In the past 20 years the number of federally inspected packing plants has dramatically decreased creating a monopoly for the few large packers that remain. Allowing provincially inspected packers to sell beef inter provincially would help create alternative markets for Canadian producer's live cattle.

Canada and the U.S. were and are harmonized in 99% of their beef regulations (excepting handling of SRMs). I fully expect Canada to move with our North American partners in allowing beef to trade across regional lines.

It is only 25 days until our live cows can cross into the U.S. It will be great to see that get back to normal. It is easy to overlook the progress that has been made on the BSE front because of the new problems of ethanol/high grain prices and a Canadian dollar that is higher than the U.S. green back, not to mention MCOOL. BSE testing is rapidly becoming a non issue (as I believe it should be), being replaced by new problems that will be even more difficult to solve.

Allowing interprovincial trade in beef would be a step in the right direction.

[rkaiser]

None issue. None issue

You are amazing farmer_son.
Japanese beef consumption is down 26% and we cannot bully them in to buying untested product. Even if the government of Japan has changed it's rules to suit the packer led USDA, the consumer has the final say.

Do you realise that every other country affected by BSE with the exception of Canada and the US has embraced BSE testing within months after their first case. Why farmer_son? To open markets and reach consumers. Why not Canada and the USA? Because because our industry is controlled by the multinational packing industry who can supply product to customers all over the world from their plants all over the world.

Do you think that our obedience to the packer led USDA will still be important once these same multinational packers start to import even more beef from their new South American plants and displace our current American exports?

BSE testing is an opportunity for us to take back control of our own industry here in Canada. Brand our product unique and special and likely sell more beef to the consuming public in the USA than we do now.

I am sorry that you are scared farmer_son. Or is it that you and the rest of the current ABP/CCA folks just don't want to admit that you were wrong, and are still wrong about sucking up to the multinationals?

Far from being a non issue old boy. Ask your provincial minister of Agriculture how much of a non issue BSE testing is.

[rkaiser]

You'll have to wait until George comes back from Japan on the 3rd of Nov. farmer_son. He is over there right now asking some questiones that should have been asked 4 years ago.

In the mean time - here are some thoughts we have been researching over here at the BIG C camp. Might want to read tham prior to heading out to the ABP meetings were the "good news" promotional video is preparing to be unleashed. LMAO

IN 2006, CANADA SHIPPED 2000 METRIC TONNES BEEF TO JAPAN. AUSTRALIA SHIPPED 406,113 METRIC TONNES BEEF TO JAPAN.

IN 2006, HONG KONG IMPORTED 207,000 METRIC TONNES BEEF, BRAZIL SHIPPED THEM OVER 100,000 METRIC TONNES.

OUR BEEF EXPORTS TO THE US AMOUNT TO OVER EIGHTY FIVE PERCENT OF OUR TOTAL EXPORTS, YET NEVER EXCEED SIX PERCENT OF US ANNUAL NEEDS. WHEN WE LOSE TWO PERCENTAGE POINTS OF THE US ANNUAL NEEDS TO CHEAP SOUTH AMERICAN BEEF, THAT WILL TRANSLATE TO THIRTY PERCENT OF CANADA'S EXPORTS. WHERE TO THEN?

IN JANUARY 2007, TYSON ANNOUNCED THEIR PURCHASE OF CRECUED INDEPENCIA, ONE OF ARGENTINAS LARGEST BEEF PROCESSORS, AND AS WELL, ALL OF CACTUS FEEDERS FEEDLOT HOLDINGS IN ARGENTINA. IN MAY OF 2007, SWIFT'S HOLDINGS IN THE U.S. AND AUSTRALIA WERE BOUGHT UP BY JBS FRIBOI OF BRAZIL, CREATING THE WORLDS LARGEST MEAT PACKER
.
BRAZIL HAS GONE FROM 10% OF WORLD MEAT TRADE IN 2000 TO 35% IN 2006, SHIPPING TO EUROPE, JAPAN, AND SOUTH KOREA. FROM JAN TO JULY 2007, BRAZIL'S BEEF EXPORTS INCREASED BY THIRTY PERCENT OVER SAME TIME PERIOD FOR 2006. TYSON IS CURRENTLY DOUBLING THEIR CREUCUED INDEPENCIA SLAUGHTER OPERATION IN ARGENTINA, REASON CITED "ACCESS TO ASIAN AND EUROPEAN MARKETS FROM A BSE FREE ZONE" SOUTH AMERICA IS BEING COLONIZED BY U.S. MULTI NATIONALS, AND SOUTH AMERICAN BEEF IS SHOWING UP IN THE U.S. IN INCREASING AMOUNTS. OURS WILL BE DISPLACED BY IT. WE HAVE LOST THE "QUALITY ADVANTAGE" WE USED TO BOAST ABOUT. WE CANNOT COMPETE WITH SOUTHERN HEMISPHERE BEEF PRODUCTION COSTS.

BRAZIL IS PLOWING ONE BILLION DOLLARS A YEAR FOR TEN YEARS INTO AGRICULTURE BIOTECHNOLOGY RESEARCH. HALF A BILLION A YEAR FROM GOVT, AND HALF A BILLION A YEAR FROM PRIVATE INDUSTRY. CANADA PALES BY COMPARISON. ALL TOLD, SINCE 2000, BRAZIL HAS LOST MORE THAN 60,000 SQ MILES OF RAIN FOREST TO CATTLE AND SOY PRODUCTION. THAT'S AN AREA LARGER THAN THE STATE OF GEORGIA.
AUSTRALIA CURRENTLY CONTROLS AND HOLDS 20% OF WORLD EXPORT BEEF TRADE, HELD BACK ONLY BY BRAZIL AT PRESENT
.
FEDERAL GOVT GAVE CBEF ANOTHER 1.5 MILLION DOLLARS RECENTLY. LAST YEAR FEDS GAVE CBEF 1.3 MILLION DOLLARS. PROMOTIONS COST 5.14 MILLION DOLLARS LAST YEAR [1.48 MILLION SPENT IN JAPAN] THE 07 – 08 BUDGET IS 7.5 MILLION. HISTORICALLY, CBEF RECIEVES 30% OF IT'S FUNDING FROM CHECKOFF, 70% FROM TAXPAYERS. WHO IS BENEFITING FROM THE MONEY CANADIANS SPEND ON CBEF FUNDING?

FEEDER CATTLE EXPORTS ARE UP 36.6 PERCENT AS OF OCT. 6TH 2007 YEAR TO DATE COMPARED TO SAME TIME PERIOD 2006. LIKELY WILL CLIMB. FAT CATTLE EXPORTS ARE UP 12% OCT 6TH YEAR TO DATE. SLAUGHTER UTILIZATION SITS AT 60%, YET CURRENTLY OTM SLAUGHTER VOLUMES IN ALBERTA ARE 35% ABOVE 2006 VOLUMES. WE ARE SHRINKING OUR MOTHER HERD, EXPECTED TO RETURN TO 2005 LEVEL THIS YEAR. CANADA IS EXPECTED TO IMPORT MORE THAN 200 MILLION DOLLARS MORE BEEF FROM THE U.S. IN 2007 THAN WE DID IN 2002. THIS AT A TIME WHEN WE ARE BEGGING THEM TO OPEN TRADE TO OUR BEEF, AND A RECORD NUMBER OF OUR FEEDER CATTLE ARE "GOING SOUTH".

OUR AGE VERIFICATION SYSTEM WILL NOW BENEFIT THE US SINCE FEEDER CATTLE EXPORTS FROM CANADA TO THE U.S. ARE UP THIRTY PERCENT.

US COW HERD IS CURRENTLY 7.5 TO 1 COMPARED TO CANADA. U.S. SLAUGHTER HOWEVER, IS 10.5 TO 1 COMPARED TO CANADA.

ABP HAS FAILED TO RECOGNIZE THE CURRENT POWER STRUGGLE IN THE U.S. BETWEEN THE LARGE MULTI NATIONAL PACKERS; THIS IS PLAYING OUT IN SOUTH AMERICA AS WE SPEAK AND WILL BE THE END OF THE CANADIAN BEEF INDUSTRY AS WE KNOW IT IF NOT ADDRESSED. WE CANNOT COMPETE WITH SOUTHERN HEMISPHERE BEEF IF WE DO NOT CHANGE OUR BUSINESS APPROACH.

WASHINGTON IS ON A DRIVE TO KILL SUBSIDIZATION TO AGRICULTURE. THEY HAVE NEARLY GIVEN UP ON WTO, THUS ARE PURSUEING BI – LATERAL TRADE DEALS, WHICH IN EFFECT ARE UNILATERAL TRADE DEALS. BY ATTEMPTING TO CAPITOLIZE ON NEW OIE "TRADE GUIDELINES" THEY ARE BULLYING BORDERS OPEN TO THEIR BEEF, BUT HAVE LEARNED THEY CANNOT BULLY CONSUMERS TO BUY IT. THEY WILL ALWAYS PROTECT THEIR OWN CATTLE INDUSTRY OVER CANADA'S. THEY HAVE NOT HESITATED TO MANIPULATE CANADA'S BEEF INDUSTRY IN ORDER TO PROTECT THEIRS AS RULE ONE AND RULE TWO DEMONSTRATE. WORDING OF RULE TWO INDICATES A LIFE OF AROUND TWENTY YEARS FOR RULE TWO. RULE TWO GUARANTEES THE OTM LIVE CAPTIVE MARKET WILL REMAIN WHILE MUCH EXPANDING THE OTM BEEF MARKET FOR PROCESSORS. HARMONIZATION OF THE NORTH AMERICAM MARKET IS AN ILLUSION.

JAPANESE BEEF CONSUMPTION IS DOWN 26% AND WE CAN'T BULLY THEM TO BUY IT UNTESTED, EVEN THOUGH WE HAVE TECHNICALLY FORCED THEIR BORDER OPEN WITH NEW "OIE GUIDELINES" UNCLE SAM HAS DISCOVERED THAT THE CONSUMER IS INDEED THE ULTIMATE JURY, NOT THE OIE, YET BSE TESTING FOR MARKET ACCESS REMAINS FORBIDDEN TO US.

WITH A COUPLE OF PRODUCER SURVEYS SHOWING PRODUCER WILLINGNESS TO VOLUNTARILY BSE TEST AT WELL OVER NINETY FIVE PERCENT, ABP HAS EFFECTIVELY USED OUR CHECKOFF MONEY AGAINST US FOR OVER THREE YEARS.

A CASE STUDY OF COUNTRIES AFFECTED BY BSE SHOWS THAT ALL COUNTRIES WITH THE EXCEPTION OF CANADA AND THE U.S. TURNED TO BSE TESTING WITHIN MONTHS OF THEIR FIRST DIAGNOSIS OF BSE. [28 OTHER COUNTRIES STUDIED, McLAUPHLIN CENTRE, UNIV OTTAWA]

NEITHER ABP NOR CCA HAS RECOGNIZED THE NEED FOR POLICY CHANGE AT THE FEDERAL LEVEL, IN FACT, BOTH HAVE EFFECTIVELY KILLED DISCUSSION ON BSE TESTING EACH OF THE LAST THREE YEARS.
BEEF INITIATIVE GROUP HAS POINTED OUT THE POTENTIAL MARKET IN THE E.U. FOR THREE YEARS. NOW, THE U.S. MEAT EXPORT FEDERATION HAS ANNOUNCED THAT THE U.S. IS ON TRACK TO CASH IN ON THE E.U. MARKET IN 2008 BEYOND THE 11500 METRIC TONNE TARRIF FREE QUOTA. USMEF'S QUOTE "AT A TIME WHEN THE FOCUS IS ON ASIAN MARKETS, IT WOULD BE A MISTAKE NOT TO LOOK AT EUROPE. THEY'VE GOT THE MARKET AND THE NEED AND THE BUYING POWER". CANADA HAS SLEPT THROUGH ANOTHER OPPORTUNITY.

AUSTRALIA IS THE WORLDS SECOND LARGEST BEEF EXPORTER, YET THEY PRODUCE APPROX ONLY TWO PERCENT OF THE WORLDS BEEF. THEY ARE SECOND ONLY TO BRAZIL FOR BEEF EXPORTS. CANADA PRODUCES ABOUT TWO AND ONE HALF PERCENT OF THE WORLDS BEEF, YET HAS FALLEN BACK DRASTICALLY IN TERMS OF GLOBAL EXPORT STANDINGS. IS IT A COINCIDENCE THAT AUSTRALIA IS ON THE OTHER SIDE OF THE GLOBE FROM THE U.S.? PRIOR TO FOUR YEARS OF POLITICAL MANIPULATION OF CANADA BY THE U.S., CANADA WAS THE THIRD LARGEST EXPORTER OF BEEF GLOBALLY. ABP MAINTAINED ON OCT 16TH 2007 THAT WE LIVE BESIDE THE "MOST LUCRATIVE MARKET IN THE WORLD". WE QUIT COUNTING OUR BSE LOSSES TWO YEARS AGO AT TWENTY BILLION DOLLARS.

NOTE: ALMOST ALL OF THESE STATISTICS WERE OBTAINED FROM EITHER CANFAX OR CCA'S DATA. DO YOU EVER WONDER WHY ABP HAS FAILED TO BRING A WORD OF THIS TO YOUR ATTENTION?

[farmers_son]

I re read my post just to make sure it only referred to regional trade in beef. How a post on regional beef trade ends up with rkaiser berating ABP/CCA and suggesting the world is going to end if we do not test for BSE is beyond me. The world is not going to end, at least from BSE.

I do not know if ABP or CCA has a position on interprovincial trade in beef but I would hope they support it.

Within 25 days we should expect normalized trade in live cows and calves between Canada and the U.S. I read recently where Canada exported over 2200 head of live cattle to Russia. Japan is not insisting on BSE testing of calves 20 months and under and has stopped testing their own 20 month and under calves. That is progress, we would not have seen any of that a year ago.

The reality remains that our live cattle prices are set by Cargill and Tyson and any amount of BSE testing is not going to change that. We get paid for live cattle, not beef, and until we regain full access to the U.S. market (which offers what competition we have for live cattle prices) we are going to have a wide basis and our live cattle prices will not improve.

On our farm, high grain prices, strong Canadian dollar are what has my attention these days. After BSE hit, BSE was a constant focus for me just like everyone else. I have bigger problems these days. BSE is pretty much over. The price of our cattle these days has a lot more to do with $4 barley and a $1.04 Canadian buck then it does with the lingering impacts of BSE.

I tend to think $4 barley and our dollar at par is a far bigger threat to the Canadian cow herd than anything coming out of South America. Rkaiser did not mention MCOOL which is a far bigger threat than Brazil could ever think of being because it will impact our live cattle access to the U.S. market.

When you go to the auction mart, the talk these days is not about BSE or BSE testing, it is the price of barley and the dollar. I stand by my comment that BSE has become a non issue.

And on the topic of solutions and what we can do to improve things... interprovincial trade in beef would be a good thing and a step in the right direction.

[rkaiser]

No problem with inter provincial trade farmer_son, and I am sorry if you think that I hijacked your thread. But trade is the word that brought me to mention BSE testing and even if you personally think that testing is a becoming a non issue - the rest of the world does not.

Just like inter provincial trade, legislated barriers that favor one group over another and have little, or nothing to do with science are wrong. The two rules published by the USA concerning the border still deal with BSE. Am I wrong? There would not need to even be two rules if it were not for BSE. Rule two and even the first rule guarantee that trade between our two countries will never be the same as it was prior to BSE.

Yes live cattle prices are set by Cargill and Tyson as you say, but if we push Cargill and Tyson to sell our unique product (which is now worth more because we have tested it) to countries with at least as much economic life as the USA, our demand for production will increase and so too will the prices.

AND if these two companies do not want to break company protocol and brand a country as unique and better, then we find a way to own the packing industry ourselves or find someone like a Japanese company to come in to Canada.

As far as Mcool being a threat, - of course it is under our current ABP/CCA accepted behavior. But unlike the threat from South America (which I believe is a far greater threat), Mcool is an opportunity for Canada. An opportunity to brand our product and find even more ways to brand it. Not only bey offering American wholesalers and retailers a North American BSE tested product, but a hormone free product, a CLA enhanced product, or any other form of branded beef product we could imagine, if we had control of our packing industry.

It is always an easy defense to say that I am a complainer or a be-rater farmer_son, but I see BSE as an opportunity for producers and a solution to our problems. If you and the gang at ABP have a better solution - let's hear it. Easy enough to point out the problems like the low dollar and the grain prices, but how about some changes that will stop the bleeding at the primary producer level. Grain prices are causing margins to shrink for feeders - true, but where are they trickling those decreases down to. Trickle down is working fine for expenses, but is not working for profits.