COOL Means Australian Beef Replaces Canadian Beef in U.S. Markets

[Willowcreek]

grassfarmer- If you've paid any attentions to our elections- you'll know that the Republicans have got their arses kicked out of control big time in the last two elections...

And its been some of these same Republicans that, like the NCBA, have been in the Packers pockets...A lot of their power went out the door..

Even the new Secretary of Agriculture was coming around to the pressure put on by the public and Congress- and on Jan 20th we will have a new Secretary of Agriculture to lead the direction for the USDA...
The President-elect, Obama, is already looking over 2000 executive orders signed by Bush to decide if he will invalidate or reverse them...
The country gave him a mandate- they want a complete "CHANGE" in direction..

[farmers_son]

Willowcreek: You and all Americans should read up on the causes of the Great Depression:

http://en.wikipedia.org/wiki/Great_Depression_in_the_United_States

"The Great Depression in the United States began on "Black Tuesday" with the Wall Street crash of October, 1929 and rapidly spread worldwide. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation and lost opportunities for economic growth and personal advancement in the United States. Although its causes are still uncertain, the basic cause was a sudden loss of confidence in the economic future. The traditional explanation is a combination of high consumer debt, ill-regulated markets that permitted malfeasance by banks and investors, cutbacks in foreign trade, and growing wealth inequality, all interacting to create a downward economic spiral of reduced spending and production. The initial government response to the crisis exacerbated the situation; protectionist policies like the 1930 Smoot-Hawley Tariff Act, rather than helping the economy, merely strangled global trade. Industries that suffered the most included agriculture, mining, and logging as well as durable goods like cow and automobiles that people postponed."

More on the Smoot-Hawley Tariff:

http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff_Act

The Smoot-Hawley Tariff Act (sometimes known as the Hawley-Smoot Tariff Act)[1] was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. In the United States 1,028 economists signed a petition against this legislation, and after it was passed, many countries retaliated with their own increased tariffs on U.S. goods, and American exports and imports plunged by more than half. In the opinion of most economists, the Smoot-Hawley Act was a catalyst for the severe reduction in U.S.-European trade from its high in 1929 to its depressed levels of 1932 that accompanied the start of the Great Depression.[2][3]"

Grassfarmer: I do not speak for anyone or any group in these threads other than myself. You need to know that and it is wrong to imply otherwise. I never said our beef was the best and even if our beef was the best that would be need to be defined and put into context.

I do not think you can guage best by volumes of exports. Exports may be driven by low price.

The point I was trying to make was that, assuming the U.S. needs to import beef, the U.S. cattle producer would be far better off if that beef came from a country such as Canada which has a similar type of cattle and feeding system along with a similar cost structure than if that beef came from off shore and from countries with a lower cost structure such as Australia. I pointed out that Australia has seen a gain in market share with the introduction of COOL.

We need to remember that the U.S. did sign a FTA with Australia and that the U.S. producer should give some thought to which is better for them. Is it NAFTA and trade with Canada or trade with Australia and have to compete with a country that seems to be able to produce a fat grain fed calf for at least $400 less than a steer in the U.S.? I think the U.S. cattle producer would be better off seeking live cattle and beef trade with Canada than Austalia.

[grassfarmer]

OK farmers_son, I'm just so used to you advocating the ABP stance on nearly every subject that I have got into the mindset of thinking of you as being an ABP director or delegate at least. If you aren't I apologize.

However I stand by my point that it is wrong to imply that Australian beef is "rooburger" and automatically inferior to Canadian. That was why I cited the information about the DNA markers. You must surely agree that it is both wrong and foolhardy to underestimate our competitors like this?

[Willowcreek]

farmers_son-- I aware of the Smoot-Hawley-- but I personally think a severe Depression is unevitable already.. Bush was asleep for 8 years on the economy- and didn't wake up until it was already a disaster...
And I think its going to take an "America First" policy and program to bring us out of it...Putting US industry, workers, producers, infrastructure, etc. ahead of all these other nations and multinational corporations...Americans don't mind paying to build our own country- but are tired of dishing it out to build and support the industry and infrastructure of every country of the world..

I think besides a stronger M-COOL, you will see a Packer Ownership ban put in place- plus raised corporate taxes, that gives big exemptions for products/production within the US- to get many of the companies operating out of country to reinvest back into the US....And we may see some enforcement of the anti-trust laws to break up these huge corporations (like AIG) so we no longer have corporations that are too big to allow to fail.. This could affect the Packer monopoly..There is already 20 some State Attorneys signed onto the court action to keep JBS Brazil from buying up some of the US packing...
We will also see a lot more money put into alternative forms of energy- including ethanol and bio diesel- which will mean grain crops will rule...A lot bigger push to organic and grass fed cattle too..
Thats just a little of the direction change I see possible..

[kato]

If you want corporations to take their business outside your borders, just raise corporate taxes. That'll do it. Why would they invest in America if the cost of business is raised? Think about it. It was your high dollar that got them going internationally in the first place, and now that it has come down a bit, the higher taxes will keep the momentum going.

I would also think that Obama has much higher priorities than MCOOL. America has much bigger problems than labelling food products. Like making sure people can afford to actually buy food.

I was reading an article yesterday that speculated that if the current Ag secretary doesn't finalize MCOOL before the inaugeration that it won't happen for many more months. Simple logistics of a change in administration will put it off.

As well, there is the fact that promises made during elections will always get a sober second look afterward.

[Willowcreek]

Well Kato- if the corporations that operate within the country- and use US employees- and produce products within the boundaries of the country are given exemptions- that actually encourages business to move back/stay here...

And you can wish all you want on M-COOL and import regulation- but the Dems for the last few years have been the ones pushing for more inspection/regulation on imported products- M-COOL- and more FDA/USDA import inspections (requiring the importers to pay the cost)...

One of the ones being talked up as the possible Ag Secretary and head of USDA is Montana Gov. Brian Schweitzer- who pushed thru the Montana M-COOL and has taken an active part in questioning the safety of imported beef/meat... And even if he isn't picked as Ag or Interior Secretary- he will have a key ear in D.C. now as he was chosen by Obama as a keynote speaker at the Dem convention that nominated Obama...

I guarantee you- things are headed for a change...One of the over 2000 Bush rule signing changes Obama could be looking at could be the USDA rushed thru BSE rule changes ????

[farmers_son]

Willowcreek: Can I take it that you prefer to see the U.S import beef from Australia rather than Canada?

I do not see the U.S. being able to produce all its beef requirements domestically (and export too) so it seems likely to me the U.S. will be importing beef from somewhere. If you have to import beef, which country would you prefer to import from?

[Willowcreek]

farmers_son- personally IF we have to import any beef- I would prefer Canada instead of Mexico or Australia--but I also would like to see it ALL labeled to COOL to give the consumers an informed choice...
Something I forgot to mention- that I think will pass in the next year or two will be the Packer Ownership Ban- restricting packers to owning cattle for anymore than 14 days...It would have in the last farm bill except for a couple old Packer bought out Republican Congressmen and NCBA being able to stop it...Neither Repubs or NCBA have half their pull anymore..