Value adding ?

[gcreekrch]

I understand that there are govt' programs out there to help build a gismo called an anerobic digester. I am not sure of the feasability of having one where livestock are not confined, but I can see the benefit for every feedlot, pig, and chicken barn in the country. This digester converts animal waste into methane gas you can burn in your car, truck, etc. It still leaves a product that is good for the land without quite as many pollutants in it. If the feedlots could also reap a govt' subsidy for producing renewable fuel it might give them an incentive to buy our calves again this fall. On top of that idea, I hear that Tyson is gearing up to make bio-diesel from beef, pork, and chicken fat. This program will do 2 things. First, it will make money for Tyson- part of their profits will eventually tricle down.( I hope!) Second, it will be using trim that today either goes into hamburger, or in this country becomes waste. If the burger meat was now actually all lean beef it would take a lot more cattle to service the fast food trade, wouldn't it? If the demand is there the market should go up.

[grassfarmer]

Maybe some wishful thinking gcreekrch, "First, it will make money for Tyson- part of their profits will eventually tricle down.( I hope!)" I doubt it - why would they pass on any of their profits to producers when they don't need to because they have eliminated competition from the marketplace?

"If the burger meat was now actually all lean beef it would take a lot more cattle to service the fast food trade, wouldn't it? If the demand is there the market should go up."
The only reason the packers would divert some of their fat to a fuel product would be if they could get more money for it than by selling it to burger joints. Devotees of the junk food diet seem quite happy to pay a high price for their unhealthy diet and I doubt whether the bio-diesel industry would outbid them.

[gcreekrch]

I agree with your philosophy grassfarmer. I just threw that out there for discussion purposes. Here in the sticks of western BC we are somewhat out of touch with the "real world". BUT, if producers were to someday have another go at a co-op owned kill plant, supplied by member owned, custom fed or grass fattened, BSE tested cattle, these are 2 more ways to reap a little more cash from our product. If you read up on animal fat produced bio-diesel it says that the fat from 2 steers will produce 1 barrel of oil which is about 68% of the total components used to make bio-diesel. Tyson expects to be producing 175 million gallons of this fuel by the end of 2009 so there must be an attraction of greater profits for them to be using fats in this manner The other components are 15% water, 15% methanol, and 2% surfectant.I still believe that increased demand for lbs will eventually increase dollars payed to the primary producer. I'm not sure of the costs incurred or how many lbs of manure it takes to make a gallon of methanol, maybe someone else out there has some input on this. Dave Brace

[grassfarmer]

I guess I should have pointed out there are two kinds of fat produced by a kill plant. There will always be some that is pure surplus and has to be disposed of and then there is the kind that is sold as beef on the primals whether it is eventually resold as steaks, roasts or hamburger. So yes Tyson may be selling a lot as biofuel in the future but it will not be coming off the stuff they can market as steaks, roasts or hamburger it will be coming from the waste fat. As such I would maintain that the biofuel industry will not be outbidding the burger eaters resulting in the burgers becoming leaner any time soon.

[rkaiser]

Dave Brace,

Nice to see a fellow fellow put his name up on a thread.

I would say that the best way to reap the rewards of bio fatfuel back to the producer is to own the plant, but the fact that this stuff will soon have value is worth some discussion. How about when we approach the packers for a custom kill. They set a price and we say to them - well boys we hear that you are pulling some profit off the fat from these beasts and we would like that to be considered in the custom price.

As far as a trickle down of these benefits to the rancher in the present system - I would agree with grassfarmer - in our dreams. Nothing really trickles down to the primary producer but expenses.

Randy Kaiser

[per]

There is a bio fuel plant just finished beside Cargill. I am not sure if it is tallow or what they are using from the plant.

I believe the only way we will reap the rewards from this sector is to own the facility. Bio plant, Packing plant, etc. I am aware of the risk and have lost real money in a failed facility. Still Reganomics has failed also and keeping thinking that the trickle effect will eventually prevail is folly.

Randy I am also not afraid of using my name. I thought when I signed up that I would have to type it in each time so I went for my initials.

Phil Rowland

[gcreekrch]

Now guys, by tricle down I didn't expect to start getting cheques from Tyson or Cargill for the fat they pulled off my age verified beef. I've been around long enough to know that owners of packing houses don't generally have red suits and white beards. I meant that demand and supply pretty well always go together, whether it be up or down. Who knows, maybe in a few years demand will be for 50's style cattle that don't have too many lbs of beef, " but my choice grades yielded 400 lbs of bio-fat!!" A footnote: If you fellas over in the flat country think you're losing money,come to the pristine wilderness, where you can produce your own power, feed the precious wildlife 15-20 cattle a year,take a month to find enough cattle to ship, haul 200 or 500 miles to a stockyard. I think you get the picture.

[perfecho]

Unfortunately I have to agree with most¡K.if we truly had a free enterprise system, yes we would get premiums for steeping up, and likely will to a ¡§small¡¨ degree. However, corporate mandates are to acquire and maintain as much of the capital as possible. When we only have two major buyers, we no longer have a free enterprise, we have free monopoly. Pre BSE, we still had the monopoly, but the free trade to the US made it the free enterprise. Although, I thought, we laws against monopolies and control, there does not seem to be the political will to do anything about the situation¡Kthus we will receive what the powers to be dictate¡Kalthough occasionally they screw up and if you are positioned right at the time, you can capitalize on the situationƒº
Having said the downside, this, I believe leaves opportunities ¡Kdirect marketing, vertical integration, etc., etc. But, for some of us, this is a lot of work and requires a passion,,,which some of us have run out of and are getting to old for this sh¡K.;-)
Thanks for allowing my rant¡Kand since it seems to be the flavor of the day¡K..
Regards, Larry Fecho

[perfecho]

Sorry, wrote on "word" and pasted (poor speller), and when it pasted, it came with all those little sqiggles...try harder next time.

[perfecho]

Sorry, wrote on "word" and pasted (poor speller), and when it pasted, it came with all those little sqiggles...try harder next time.

[per]

perfecho, you can download the Google toolbar from the Google website and it has a spellcheck on it that will work on these thread boxes. Just find the nearest teenager if you need help! For small pontifications it is easier than word.