BEEF QUOTA SYSTEM

[rkaiser]

Bez -

One thing about this industry is that due to the predatory nature of the participants - transparency is not always the case. BIG C is out to change that and a lot of other things about the way things are done. Don't think we have any influence? This proposal was the most well received of 5 1/2 proposals at the round table meeting last Wednesday. It was also taken to the Federal level by our minister and is being carefully considered and molded as we speak.

Dont' give up on ALL industry groups just yet!



Further to our meeting at McDougall Centre on October 16th, I am submitting, as requested, Beef Initiative Group's perspective as to what this cattle industries forward looking strategy requires. Acknowledging recent events negatively impacting the entire Canadian cattle industry, with more fallout inevitable, I would hope that all levels of industry leadership now recognize the necessity to restructure our approach in shaping the future of this industry.
As our current situation clearly demonstrates, our approach to the many obstacles over this past four and one half years has failed. We have proven that harmonization of the North American market and industry is an illusion which at best does not have the wherewithal to deliver the economic stability necessary to assure the industry a viable future. Thus, we are condemned to shrinking the Canadian cattle industry by a large percentage in the very near future unless we are successful in changing our business approach. I am worried that we may well be too late to redeem all that we once thought of as normal in this industry, but we have no choice but to forge ahead and preserve what we can.


I therefore offer the following suggestions for your consideration:


[1] From where we now stand, it is imperative that we find someone as straight forward and result focused as for example a "Lee Iococca" CEO and a board of highly knowledgeable and aggressive industry personnel to work under him. This board would take the leadership role on the trade and govt policy side of industry affairs. This board could technically operate under the auspices of existing industry organizations, however, with the understanding that existing industry organizations would defer to this board on matters of trade and policy development. All future govt assistance to industry needs to be contingent on the implementation of this new board, and a new clearly thought out business plan focused on increasing trade in markets beyond the NAFTA territory. Industry will argue that this "Lee Iococca" were not elected, we were. My reply will be that Rich Smith, Dennis Laycraft,
and John Masswohl were not elected either. Our survival hinges on trade with non NAFTA markets, and we require emergency measures to achieve the same.


[2] I propose the reconstitution of CBEF with an enhanced mandate and with an Alberta govt presence on it's board. CBEF has been hamstrung by both industry leadership and packer domination for too long. Processors obviously favor north – south trade, thus we have made dismal headway in foreign market re entry. The new board handling trade and policy must have access to a workable CBEF like organization, virtually oriented and focused on the same objective. Such an organization does not exist as we speak.


[3] That both ABP and CCA be presented this new business plan and be required to accept these measures as a condition of future public support.




I am aware that the above described concept will not be acceptable to current industry leadership. The present state of the industry dictates the need for an immediate reassessment of industry policy and leadership. I will be happy to offer BIG's support and counsel in future discussion, however, we are at a crossroads now where controversy cannot be avoided. From my perspective, working on the ground in this present economic climate, we are only a short step away from watching this house of cards fall around us. Thank you.


Respectfully, Cam Ostercamp
Pres. Beef Initiative Group – Canada

[smcgrath76]

Considerations...
1. In the current environment a quota system needs a regulatory framework to exist. If we look at the current approach to WTO negotiations and the Canadian Wheat Board as examples it is unlikely to ever come to pass.
2. In terms of trade agriculture is important to Canada but probably not to the extent of several other industries, or industries combined. It is unlikely in my opinion that trade negotiators are going to let ag slip through the cracks.
3. While I don't entirely agree with how some corporations operate globally, I think it is important to realise that these low paying factory jobs and abhorrent labour conditions are in many cases actually the first steps on the road to a consumer society. For example look at the growth in China. The movement started with low paying factory/assembly/toymaking work and has moved into design and engineering, etc.
4. In a quota type approach, where does personal innovation and marketing fit. Does a direct farm marketer have to operate outside the quota?
5. Consider (within reason) that it is the responsibility of the individual to develop some of their own value. In other words if there is a market for hormone free then find it, produce it and if you need more volume find others with the same thoughts. Legislating things instantly turns them into a cost of production, rather than a market opportunity.
6. Did anyone make you have cows? why do you have cows? what do you want to accomplish with those cows? What are you doing about it? Why?

I don't know if there is a right answer, but I do think part of the common thread between free market and quota approaches is the message that at least some of us need to work together. Personally I would fall very, very, very strongly on the free market side, as I see a lot of opportunity. My personal viewpoint is that if no one wants to work together or change the way they do business that is their personal business decision. I am in total agreement that the system that exists today is broken, but not at all in agreement that things are hopeless.

[Bez]

Kaiser - I now do my own thing.

We developed our own markets because I was tired of the following:

1. Cattle producers begging for money,

2. Cattle producers sueing corn producers in Ontario,

3. Cattle producers complaining about how bad things are,

4. Cattle producers resisting VALID changes to evolve with the times.

4. No damned organizations DOING anything about the above - other than to beg for money and take nice trips to nice places on MY dollar.

So, if our plans do come to fruition, it will be this outfit that survives and makes it - no help from the reps and orgs.

Funny thing is - even with depressed pricing, higher fuel pricing and so on - we made money last year - and probably will this year. Despite having sold down to very few animals.

We developed our market and our system with no help from anyone.

We did this because we were tired of paying accountants and lawyers to get money from the chartered accountant income supplement funds. And usually getting nothing.

We were tired of age verification that gave - to the vast majority of producers - NO return.

We were tired of Quality Starts Here - that gave - to the vast majority of producers - NO return.

We were tired of programs that were asked for by the various cattle groups - provided by the various gov orgs and then watching the money go everywhere but where it was needed.

I have yet to see how a quota system would be designed - so I refuse to call it down. Seems I may be in the minority in that one.

I have yet to see an assistance program that truly works - so we opted out.

Having lost nearly $80K in real dollars about three years ago we needed to change - so we designed our own program and we did things that were completely foreign to us - out of the box?

Nope - for me there no longer is a box!

The rest of the producers can run with the herd - we are out of it.

We may not get rich, but we have certainly started climbing out of the hole - and faster than I thought possible.

Bez

[rkaiser]

Good for you Bez.

And on a personal front _ not only hear you but have been doing the same thing. Calving out over 200 cows now for years and buying feeder cattle besides - and have only used conventional marketing for less than a hundred head since BSE hit.

But - my marketings are still based on conventional - even though I don't like it. Bull buyers still have to deal with the screwed up system and our beef premiums are just that - premiums over and above that same screwed up system.

Thus my unwillingness to give up on change. Take another look at the document I posted Bez. It is only the beginning I guarantee you. Already conference calls with government this morning and it's not even 8:30 Alberta time.

Feel free to call any time (403) 783 - 8872

And once again good on you for your efforts.

[coppertop]

Randy, thanks for your willingness to really, represent beef producers. I hope that there is a new direction with ABP, and that some of the other delegates follow your lead.