The Real Issue Facing Canadian Cattle Producers

[Bez]

Big snip .....

Quote -

And it is very important to note that Japan will not allow voluntary testing for BSE from their packers for the same reasons no other country in the world will allow voluntary BSE testing, that is it would destroy consumer confidence in all beef products.

End Quote.

This is simple poppycock.

In fact it is my strong belief that it would do just the opposite - INCREASE consumer confidence.

I suspect others have the same belief.

How much packer money supports this opinion?

In order to be an elected rep and toe the party line there has to be something going on. It may come out some day and it may never - but to be a rep and then NOT support the opinion of the electors - well, it smells bad to me.

Yet another reason I have no faith in those who run todays cattle orgs.

Bez

[cakadu]

Out of curiosity - is trying to maintain the status quo causing an increasing disconnect with what consumers want?

More and more consumers want to know where there food comes from AND more importantly know that it is safe. Granted we cannot make everyone happy all of the time, but shouldn't we be doing our best to ensure that confidence is not lost in our products?

Here in Canada we have not had a major food concern - YET. Shouldn't we be taking all steps to ensure we don't?

[kato]

Not to take away the importance of BSE testing, I think we have to be careful to avoid becoming so focused on it that we forget the other challenges we are up against.

We have more than one problem here, and I think farmers_son is right in bringing up the issue of MCOOL. In my opinion, it's got the potential to cause just as much harm as BSE did, and with much longer lasting results.

International markets are important, that's a given. The reality is that until they are developed, we must survive. As much as we don't like it, our survival depends greatly on the U.S. market. To ignore it is to walk right into a minefield. It doesn't matter how well we present our beef, and what standards we have, if MCOOL is implemented the way it is set out, we are about to get a hit that will probably change our industry for years to come.

The way it stands now, Canadian fat cattle will not have a home south of the border unless they are sold for next to nothing, and maybe even not then. We are about to become hostages all over again to the same big pirates who have benefitted so much at our expense for the past few years. Like it or not, without the U.S. bids on our cattle we'd be toast right now.

As of Jan 1, 2008, any Canadian cattle already in the U.S. are grandfathered in and considered product of U.S.A. Not that it matters much, because they should be finished before September anyway. We have some hope on any cattle big enough to finish before it's implemented, but after that it's anyones guess what will happen.

There is another alternative being proposed in the U.S. that involves any animal being in the States at least 100 days being considered product of U.S. This would save our feeder sales, but imagine what it does to our finishing feedlots? They will become backgrounders for the U.S. buyers. Then what? Which big packer will close? I bet one does, once they get through the backlog of cows which are now only eligible to be shipped as beef.

If either of these scenarios plays out, the cattle business will become a much smaller player in Canadian agriculture. The cow herd will drop in size, and the economic spinoffs will go with it.

I think we need to keep this in mind, and as we are lobbying our government on BSE related issues, we also need to put a push on them to take MCOOL seriously. They are supposed to be challenging it under NAFTA, and they need to be reminded to get at it.

Our survival depends on it.

[DiamondSCattleCo]

Kato, you are right that MCOOL will likely sting us in the short run, however with appropriate marketing, I believe MCOOL may actually help us in differentiating between US product and our superior Canadian product.

But you do serve to highlight a major point that the ABP/CCA just can't seen to get through their thick skulls. How much of an issue would MCOOL be if we weren't locked into the US as our only customer? If we had our Asian markets back, and could make headway into the Chinese market, the US could go stuff themselves. BSE testing would help with expanding our markets, so I feel its far more important than telling the Americans they're not allowed to have MCOOL (which we really have no business doing anyway).

Rod

[kato]

I realize that a country should have the right to make rules about it's imports, but the thing is that under NAFTA, the country of origin of meat is defined as the country in which it is processed. Canada, the U.S. and Mexico all signed this document, and the expectation is that those signatures should mean something.

MCOOL changes that rule unilaterally with no regard to anything signed in NAFTA. The document we have been told is supposed to lay out the guidelines by which we can make business decisions with some expectation of security is not worth the paper it's written on. Does that mean the word of the American government is worth nothing either? I'd like to think that isn't so.

The worst thing about this is that it will have absolutely no effect on any country except one that exports live cattle to the U.S., and that would be Canada and Mexico. Not South America, not Australia. It will be business as usual for them.

This is a trade barrier, aimed at live cattle, and aimed directly and exclusively at us. If we actually had enough processors here to make a real functioning market it wouldn't be so bad, but sad to say, without competing bids from south of the border, we'd be living 2003 all over again.

After all our struggles over the past years we could very well end up even more vulnerable than ever.

There is time to address this issue, but only if we focus on it now, before it's too late. We need our trading partners to honour their word, and live up to their agreements. It's expected of us, so it should be expected of them.

[blackjack]

...kato where could i find the information on why the usa would not buy fats after cool...has the american packing industry been quoted they would lose if they processed the canadian fats...

...if the trend continues more ranchers will retire or if the operation can afford to...it will diversify to the grain sector...

...sorry to say this but the north american govts subsidizing of the bio industry is basically telling livestock producers that it is way more important to follow enviro economics and politics than worry about food production...now if we could only have al gore stand up and win a nobel peace prize for eating home raised canadian beef...

[DiamondSCattleCo]

"but the thing is that under NAFTA, the country of origin of meat is defined as the country in which it is processed."

Thanks for this info, Kato. I didn't realize that was in NAFTA. The Americans have ignored so much in NAFTA that it would be nice to see them stood tall on this.

However, Hugh has been quoted several times in the trade magazines as saying that the Canadian government must fight MCOOL. I took that to mean that he felt MCOOL should be abolished from the books, which is simply none of our business. As long as the Americans honor the NAFTA agreement, they can do anything they please.

Rod

[kato]

blackjack, I got the info from a cattle buyer who's in the know, and who's opinion I respect. He doubts that there is a plant, especially a big one, in the States that will want to bother with the segregation of the meat.

With the two biggest American players already having set up shop here, they'll be much happier to just steal em at home.

deja vu all over again......

[blackjack]

...kato...thanks...i respect what you post as being very knowlegable...if that is the case it is that more disappointing that our canadian govt has not made these nafta concerns a priority...the cool talk has been going on for some years now as well...so one would think there would be a backup plan ...oh yeah...there is cais right...

[rkaiser]

Good day farmers_son. Sure was a good article you posted which completely dismisses all of the testing arguments on this board. LOL

Sounds more like the Japanese have a fight on their hands than anything. A fight like ours between the American packers trying to push their way on the Japanese government with help from NCBA and ABP/CCA. The fight to stop the consumer form being the decision maker in their requirements.

I know that you like to think you are smarter than the average consumer farmers_son, and feel that these lowly folk need to be led by you and your packer buddies, but I think that you will fail.

If you are so certain that you are right old buddy. Why not take the question to the Canadian consumer with an ABP Gallup poll? Present all of you points about why they do not need testing and then simply ask them if they would choose a tested product or a non tested product. Now that - my dear sir would end the discussion.

Like that would ever happen. ABP/CCA actually ask anybody anything.

We could even do a poll in the US of A to see how many customers we could gain rather than lose to the new cool laws. Would you like a BSE tested Canadian beef product, in your freezer Ms. Winfrey?

[per]

Maybe Ms. Winfrey would be interested in sponsering such a pole.

[rkaiser]

I always thought I was a German until indeed my grandmother said that I was of Polish decent Phil......