Lakeside Sells to Nilsson Bros. For $107M

[DiamondSCattleCo]

Right or wrong, virtually every cattle producer I talk to
is against this sale. Since the ABP is supposedly a
democratic organization where every producer gets a
vote, what is their response?

Rod

[farmers_son]

DiamondSCattleCo: I definitely was under the impression that you were from Saskatchewan. In fact you said in another thread “Unfortunately, our Ag minister here
in Sask is a blazing idiot.”

See:
https://www.agriville.com/cgi-bin/forums/viewThread.cgi?1213714607

I think your concerns would be more correctly directed to your provincial cattle association in Saskatchewan.
However it is possible you pay check off in Alberta and you certainly can talk to the ABP people in Calgary or your zone representatives, they would be glad to hear your concerns.

I think the sale is what it is, and there are pros and cons. I know I preferred it when Lakeside was owned by Canadians, but it got sold and then it was owned by IBP and then it was owned by Tyson and now it is owned by Canadians again. Each of those different owners had different strengths and the price of cattle went up and it went down through all those years. Just imagine what the cattle producers in the States whose nearby packing plant is now owned by Brazilian JBS are wondering. But the real kick in the pants is when your nearby packing plant closes and that did not happen here.

[greybeard]

Unfortunately this is just a symptom of an industry that can’t function on the amount of money going around presently. The pots too small and there isn’t room for everybody to fit .Costs have risen all the way through the system, and consolidation has occurred, top to bottom. Big changes have to occur, and some of us won’t be here to see them.
As someone else said, multinationals have no patients. Profits have to be produced in order to drive share prices. Higher share prices make for multi-million dollar bonuses.
Cargill and N B are both family held and may be willing to wait for opportunities to cream off on an occasional windfall. Cargill is doing it now in fertilizer. They bought when no one else wanted it. I feel they look at everything in a longer term.
We have to hope for more money to come from retail to make the pot bigger.That does appear to be happening now as the retailers are stocking up because the expect higher prices ahead. That’s a big turn around from waiting for it to get cheaper.
N B may not be the choice of all, but a dark plant in a location where they haven’t been able to fully staff for years doesn’t appeal to me. 50 dollars a head or 3.5 cents a pound on fats isn’t going to save my operation. Good for them if they can get it.

[DiamondSCattleCo]

I am from Saskatchewan, unfortunately due to the
horrible organization of the CCA, our voice is
completely lost in the background to the ABP. So if
want to have a voice, we have to approach the ABP.

Besides, Alberta producers are just as much against
this as Saskatchewan producers, and I see you
didn't answer my question: Given how many
producers are against this sale, and that the ABP is
supposed to democratically represent producers,
what is the ABP response to this sale?

[per]

It doesn't matter whether N B or Tyson owns Lakeside. It is important that someone operates it. I would prefer it to be producer owned. We were just issued enough cash to buy it. My big concern is the complete vertical integration that has occurred here. N B is involved in a large portion of our auction markets, feedlots and packing plants. It is time for our industry groups to step up to the plate to lobby for no or limited packer owned and controlled fed supply. It is more important now than ever before. As far a the ABP standing up for or against the sale. It appears there are folks on both sides of this argument. What ever stand they take on this one they can't get it right because there isn't a clear cut right answer other than the obvious; it is better operating than shut.

[wilagro]

Why do you think that the AB gov't is GIVING you money?

Is it so that you will shut up about that troublesome "packer owned and controlled fed supply"? The gov't doesn't want to face that problem and perhaps it would just as soon aweep it into a dark corner.

I have heard my neighbour say that in his opinion, "packer owned and controlled fed supply" played little part in what we get for our calves or our cull cows. Who is right on this? Should there be a limit on what percentage of "packer owned and/or controlled fed supply" enters the market?...and who would monitor this? Who would pay for this extra cost?

I am sure that any competitiveness in the Alberta meat packing industry has been in the past and still is, only illusionary for the most part. Pretty hard to be seen as being competetive when your dealing with your own vertically integrated supply much of the time and by doing so, in effect, tempering the market. When the main packers all do this...there must be an advantage for them or they wouldn't do it.

[spudchucker]

I notice that grassfarmer makes mention the Nisson bought it with the "expectation of making a profit" as if that was a bad thing. I am always out to make a profit. Why shouldn't anyone else?

[per]

Sure Willagrow, but we could take our new found income and use it to circumvent that issue. I guess if the we were the vertical integrated ones I wouldn't have as much problem with it. Kind of novel the producers controlling the industry. Most probably just a pipe dream though.

[grassfarmer]

spudchucker, I said Nilssons bought it with the expectation of making a profit but in no way did I imply that was a bad thing. Please don't put words in my mouth. I too am always out to make a profit.

[Sheri]

I'd sure appreciate a copy of the petition and updates as to how many signatures it's collected and to whom it will be presented and when.

We've been following the issue and will continue to do so.

Below are links for two articles on sale, a third is being published next week.

editorial on the deal:
http://www.maplecreeknews.com/index.php?option=com_content&task=view&id=3027&Ite mid=136

news article
http://www.maplecreeknews.com/index.php?option=com_content&task=view&id=2978&Ite mid=126

Also, please note the similarities between the JBS deal and what this will mean as it pertains to the entire north american cattle business.

http://www.maplecreeknews.com/index.php?option=com_content&task=view&id=2898&Ite mid=136

Thanks for all your help.
Please forward any info relating the Tyson - XL deal to maplecreeknews@gmail.com

Sheri Monk