Borders closed or what?

[ValueChainFX]

rip ... looking at the alternatives is what is needed today. A lot of the high costs of the tests are due to where they are tested and the value placed on these test (value as in cost of test profit, yes some businesses still work on cost plus)

As an industry we know this is coming, the question is who is going to pay for it, and most of the producers already know they are probably the main target to pay!!! However, I still believe that we can come up with a cost effective program that will have costs spread out across the supply chain and therefore not have to be paid by producers.

Beef consumption has been slowly slipping off for several years now, and not all of it is due to lower meat consumption just lower "BEEF" consumption. A marketer in the US told me, "The beef industry has promoted their product as a priemium product and have finally got their wish. People have the impression that the product is a premium product and instead of eating it twice a week, they are mow eating it only once a week!

Anyway, for those interested in looking at what a system that would work may look like, keep the ideas and thoughts coming. Mark my words we are going to be asked soon, what kind of system will work?

[rip]

Valuechain... I agree with you 100% that the alternatives and the costs will become less and more affordable as the numbers go up for the amount of testing... the question isnt even who is going to pay for it... we will in the end as producers...even if the government pays the tab it still comes out of our pocket as it is us who pays the taxes and the one thing the beef industry has been very good at it is paying our own way with very little government support... the bigger thing in this is making sure the right cattle get tested and in such a way that it is viewed by consumers worldwide.

Consumption has not gone down solely because consumption has dropped as you put it. It has gone down because world demand for our product has increased. Yes we have what people consider is a premium product and dont buy as much as they feel it is not something they can afford every day...but when you look at what demand is and realize that it is still increasing it makes more sense for me to produce 100 head and make the same as if I was producing 110.
We do know that the price is going to drop and if the consumer still has confidence in our product then consumption will go up... but will demand?? How much is the price going to drop?

And dont forget that consumption has not just dropped because of price. There is a growing number of different ethnics in our country and they have different eating habits. Our job is finding products that they want to eat. It is a much more complex formula than just pounds and price.

[ValueChainFX]

Right you are and the value around the ethnic communities is something we can work with well! Some of our best customers are in countries we have just recently been working with. But staying positive I do believe we can make our system work and the producer will be able to balance costs across the supply chain.

[cakadu]

Consumption has also dropped off because other meats have become just as cost effective to eat and they have been promoting them quite heavily i.e. poulty and pork.

I believe that skinless, boneless chicken breasts have been gaining in market share for quite a while now. Also, now that pork is much leaner and consistent than what it used to be, more people are eating pork.