Part of the angst of industry has been due to the path we have chosen to follow. The traditional approach to feeding and finishing was dictated by economic signals over the past 20 years. We can argue all day about whether this was the correct path or not.
This structure left the industry vulnerable to increases in input costs such as feed and fuel, and these things happened. Further government policy encouraged the rapid growth of foreign owned, large scale packers that currently dominate the landscape for slaughter cattle in Canada.
Part of the current struggle in industry has to be due to the need to restructure. Unfortunately this will leave a lot of individuals by the wayside and this is where the arguments get emotional. From an industry level however we are overbuilt on slaughter capacity, and we are highly dependent on intensive feedlot production.
These added costs are encouraging many producers to exit the industry and creating a contraction (globally and domestically). The end result is that prices will increase as supply decreases (even in the absence of new demand).
The only way to counteract these S &D forces that I am aware of is with huge government $ on a continuing basis, so that production and payment is no longer based on the forces of S & D.
This structure left the industry vulnerable to increases in input costs such as feed and fuel, and these things happened. Further government policy encouraged the rapid growth of foreign owned, large scale packers that currently dominate the landscape for slaughter cattle in Canada.
Part of the current struggle in industry has to be due to the need to restructure. Unfortunately this will leave a lot of individuals by the wayside and this is where the arguments get emotional. From an industry level however we are overbuilt on slaughter capacity, and we are highly dependent on intensive feedlot production.
These added costs are encouraging many producers to exit the industry and creating a contraction (globally and domestically). The end result is that prices will increase as supply decreases (even in the absence of new demand).
The only way to counteract these S &D forces that I am aware of is with huge government $ on a continuing basis, so that production and payment is no longer based on the forces of S & D.