Why Isn't That Border Open?

[Willowcreek]

rkaiser- I agree with a lot of what you say- and have thought that BIG C is maybe the only Canadian cattlemens group that really sees the big picture..They are definitely the only group that appears to have not been bought out by the big corporate packers- like CCA and ABP, who as an outside observer, look to be like NCBA and nod "yessa mastah" when ever AMI or a corporate packer speaks.....

I've said before, I truly think the border would be open if the M-COOL law was in effect- many of the arguments that the Judge cited would have been null and void...That said the multinationals are spending unheard of amounts of lobbying $ now to again postpone or kill M-COOL and derail R-CALF...I talked with a legislative aide the other day that said he's never seen the money being spent by the meat industry to kill M-COOL and pass CAFTA...He says the lobbyists are sleeping on the Capitol steps- that scares me, because I recognize they are doing this to help out the corporate interests which are not always in the best interest of the cattleman.. They got Australian beef opened up- now they want South American..And they don't want it to have to be labeled so anyone knows where it comes from...

This is a much larger battle and Canada just provided the opportunity and/or got caught in the middle...

[farmers_son]

MCOOL, even if it was successful in increasing demand for American beef, would not raise the price of live cattle in the United States.

The producers will continue to receive only just enough for their calves to keep them raising more. Benefits, if any, from MCOOL would be captured by the value chain from the retailers down to the packers.

MCOOL is not a food safety or animal health measure. COOL is a retail labeling program and as such does not address food safety or animal health concerns for example BSE as Judge Cebull mistakenly believes. Food products, both imported and domestic, presently must meet the food safety
standards of FSIS and/or the Food and Drug Administration (FDA), as
applicable. In addition, all food products must also meet FDA labeling
standards as well as all other applicable FDA regulations and
standards.

I could go on, pointing out that the foodservice/restaurant trade is exempt from MCOOL and so on. But bottom line, any benefits from MCOOL will not make it to the producer. However MCOOL will discriminate against American producers who could otherwise have received higher prices for their calves if finished in Canada as well as discriminate against American producers who for whatever reason could not meet the stringent requirements for proving their livestock were born, raised, and slaughtered in the United States.

The real problem facing producers in the United States as well as Canada and Mexico remains how to get paid a fair price for their live cattle.

[farmers_son]

Greybeard: While R-Calfers may have chosen the dark side and gone down the road of protectionism it is important to keep putting the truth out there.

R-Calf may say their target is South American beef, their history which includes launching countervails against Canadian producers clearly illustrates that R-Calf is focused on keeping out Canadian imports of beef and live cattle in an attempt to short the supply of beef in their country. However supply and demand fundamentals do not explain why the packers and retailers enjoy returns on investment in the range of 20% plus while producers only would see returns in the range of 2-5% if they are lucky. What R-Calf does not realize is their efforts only work to increase the packer profits while not addressing the fundamental problems around pricing of live cattle which originate at home.

[pandiana]

farmers_son I think your statement "What R-Calf does not realize is their efforts only work to increase the packer profits while not addressing the fundamental problems around pricing of live cattle which originate at home." is bang on.


Primary producers on both sides of the border are struggling to maintain profitabilty in a so-call 'free enterprise' economy where there are winners and losers. Those that hold the power to set prices are always the winners as long as there is a market for the product. The only sector with more power is the consumer.