Unintended consequences of AMLS

[grassfarmer]

Rather than lament the passing of opportunities for small packers and value chains I think you should rejoice that they now actually will have a chance to come to fruition.
All this anti AMLS stuff is based on the dreamy scenario that what we have had up to now was working well - it wasn't hence the need for change.

[DiamondSCattleCo]

"Previously there may have been opportunities for
small packers to establish value chains with
producers which would allow the small packer to
offer age verified beef with vaccination history and
so on."

A year ago I took up the mandatory age verification
torch, right after Kevin Hirsch did a story on
missing the boat on ager verified beef. I verified
what he wrote in his article with a few sources, and
here's what I found:

1) smaller packers could not secure contracts with
overseas clients because they were unable to
GUARANTEE a steady supply of age verified fats.

2) They were unable to guarantee these animals
because i) most auction barns were not pre-sorting
age verified calves out, ii) those that were being
sorted out were being snapped up by Cargill and
Tyson at higher rates, then being shipped into the
US. I can only assume Cargill and Tyson did this to
prevent competitors from opening overseas
markets. So short term, producers who age verified
saw a premium, which rapidly disappeared after
smaller packing houses gave up on trying to outbid
them.

Thankfully your Ag minister has been smart enough
to realize this was happening and is pulling Alberta
into the future. Unfortunately, our Ag minister here
in Sask is a blazing idiot.

Rod

[Kathy]

Since we are already forced by law to RFID tag our animals, at our own risk of personal.... I have no problem with age verifying my animals.

What I have a problem with is the PREMISE ID.

I was told that this little addition to the Alberta announcement was a FEDERAL Government idea.

Premise ID, NAIS, and Real ID (for humans) has been on the battlefield in the USA now for years.

Oklahoma just told the Feds to piss off, and told them to mind their own business. Agriculture is a state/provincial concern - this is why the Feds are pushing buttons of our Alberta politicians and insisting on premise id. Mr. Groenveld could have told the feds to piss off to (re: premise id) but he didn't. What did they threaten to do to Alberta if he didn't cooperate? maybe a carbon-tax?

[smcgrath76]

GF - I agree wholeheartedly that the previous scenario was not working. I am not sure that the fundamentals of the industry have been changed though.
Now the small plant can obtain age verified cattle at the going rate (rather than having them bid away). If producers don't own the value chain, it is still not a value chain and they will strictly recieve the market price of the day.
I think there are opportunities, even for custom slaughter and special (non US) markets, but unless individual ranches/ranchers seize the opportunity or decide that they will work together there is still no benefit at the end of the day.
I fear that you can't legislate entrepreneurism. We may create a group of farmers/ranchers that are dependent on government support.
The AB gov did accomplish a shakeup of the industry. They unilaterally changed the face of the Canadian beef production system.
I am still not convinced that they also changed the face of beef slaughter and marketing.

[DiamondSCattleCo]

"Now the small plant can obtain age verified cattle
at the going rate"

Yep, BUT the going rate should be higher because
of increased demand for our product due to these
smaller companies being able to guarantee delivery
to overseas customers. Now all animals will be
eligible, so the price increase should affect all
animals. Whether that makes it back to the
producer is the real key though.

Rod

[DiamondSCattleCo]

"Premise ID, NAIS, and Real ID (for humans) has been
on the battlefield in the USA "

Oie, you conspiracy quacks. WE HAVE A PREMISE ID
RIGHT NOW! My premise is NW32-50-12W2 RM486.
We've had that premise ID for nearly 100 years.
Probably have it for another 100 years or until the
kids get sick of ranching and sell the place.

Rod

[Kathy]

Premise ID under the new Recovery Program will be a number, not the legal land location. That number will enslave you to all the requirements the government, at their discretion, decides you must comply with.

The costs of compliance will be yours and yours alone, the cow-calf guy has nobody to pass his costs on to.

Hindisight is 50-50,,,, when you get your Premise ID number(s) ask why you can't use your legal land location instead.

[wilagro]

Kathy: Well, they aren't asking that you wear an RIA tag in your ear as well, (at least for now). It could be worse...no satellite surveillance either.

[DiamondSCattleCo]

Kathy, you miss my point all together. They can force
me to follow whatever legislation they want right now.
A premise ID is going to be nothing other than
another way to identify me and my ranch. Bringing a
premise ID in is not going to lead to Big Brother acts
anymore than not having it. So to fight the new
legislation based on them enacting a premise ID is just
plain insane.

Rod

[smcgrath76]

I am not too worried about premise id. I already have a phone number, a SIN number (the most expensive number I ever got), a GST number, a mailing address, and an email. We have been premise registered for several years.
I am concerned about how government is going to force me to obtain a premium by commoditizing the very things that the marketplace was paying a premium for, and with the approach to "do as we say for your one time payout, and then we will legislate it for your own good".
You know what 1/2 the cattle in the country sell below average every year. And it should be every business person's perogative to obtain as much or as little from the marketplace as they desire. In other words, if you as a producer don't believe in a premium for age verification that justifies your investment, far be it from me to tell you otherwise. As well, if you choose to spend more than you make, that is your own business as well.

[grassfarmer]

Sean, The Government is not forcing everyone to obtain (or guaranteeing anyone) a premium. They are setting some very basic requirements that everyone must attain (And they really are fairly easy to meet and good practise in any case.)In the global market place we aspire to trade in we have a chance with this minimum standard of production to become market leaders rather than hangers on.
After that you are still on your own as far as obtaining the premiums. If that means you still support some form of value chain that is in place already or you invent a new one the choice is yours.
At least with this new approach there is an element of organisation - linking the genome research to worthwhile end goals backed by Government money.

[per]

When all is said and done 1/2 of all the animals sold will still sell below average and some will still figure out how to obtain a premium.