Let's just say

[rkaiser]

Please don't get caught up in the Cargil or Tyson leaving Canada story Kato. They have ABP/CCA sucked in to that one up to their hind axles. Will not happen. They are both here to stay. Too much money in the business to leave. That's why they will never show their real books to anyone including government. Or the fact that Tyson is hooked in with the Brothers Nil.

[kato]

I still predict that the next time someone (guess who?) needs to upgrade a plant, the threat to leave will come out, and a cheque will be presented for the upgrade.

Along with a statement about how highly regarded the beef industry in Canada is, and how we will all benefit from this generous support. After all, money given to Cargill will always trickle back to the farm, right???

But for a bunch of producers trying to get off the ground? They will get exactly what the Manitoba plant got last week. A statement in the paper about how the money earmarked for beef processing is going to process pork instead.

The elected ones can say what they like, but unless you're a multinational in Alberta, there is only lip service for the beef producing sector of our economy. In fact, they have so much support for cattle producers that assistance announced for flood compensation in this province this spring has had help for cattle producers dropped from it. The federal government refuses to pay it's share.

Whatever enterprises we, as cattle producers want to get started to help find markets for our cattle need to be planned with no government support included in the budget. They've already proven that they will make the promises, but don't really have the will to follow through. Once the story's off the news, the promise is canceled. We're on our own, guys.

[rkaiser]

Kato --- "I still predict that the next time someone (guess who?) needs to upgrade a plant, the threat to leave will come out, and a cheque will be presented for the upgrade."

you bet Kato -- just had another one of those last week here in Alberta. And as always CCA supported. Will they support a serious new venture - I think so. Lots of money has gone out to smaller programs and I feel it is available once a new group gets real serious. Don't know what happened in the Manitoba deal. Do you know the details? Why was the money pulled and redirected?

[smcgrath76]

Devil's advocate...
Why does it need to be producer owned?
Why could a professionally managed,
producer directed, outside financed plant
work?
I don't think the folks behind one earth
for example are exactly farmers at heart
(Sprott Resources). Why not look at a
model like that for a plant(s)?

[rkaiser]

"Got it" Sean and "on it" too....

[perfecho]

Just to interject.....think that the "50" head plant, with implants etc banned, could be a very saleable export. I would much rather be a niche marketer that a commodities farm. My very first post was on Agriville was to just after the BSE tragedy. Get rid of all old cows, shoot for a Niche market of hormone free, ethically raised beef that could be shipped anywhere. We are not the only nation concerned about the quality of food we are buying.
There will always be countries who can produce cheaper than us....but can they produce better product?

[per]

Sean that is the most likely model to get off the ground and to me makes plenty of sense. As far as the 50 head plants exporting, no doubt that is a possibility but it goes against the 100 mile idea that sort of goes hand in hand with the small plant model. Also the cost of export regs (which as an industry we must reel in) would make it much more difficult with a small plant.

[perfecho]

Per....unless you live within 100 miles of Port Alberta!!!
Really, I agree the small plant has it's roots in a local market, but if there are other markets, why not?
If there is a demand, go for it, give the consumer healthy options!

[per]

For sure if you can get it to pencil then go for it. We are limited mostly by our imagination and current paradigms.

[perfecho]

Keeping with the "50 head or -" there are a few considerations that also can come into play. Aside from the "good food" scenario, I do believe there are other factors.
Food security.....if terrorists or acts of terrorism were to take out just two plants...where would we be? A few years ago, diesel was in short supply, had to wait a week to fill our farm tank, truckers were stranded for a day or so waiting for fuel....could you imagine if this happened again, but in a worse scenario for whatever reason. A while back there was an article in the Edmonton Journal that stated Edmonton had a 3 day food supply....sounds farfetched, however many things are happening in today’s world that seemed only a scare tactic a few years ago. Most of us have never gone to a grocery store to find shelves bare, and most likely won’t, but there are things we can to help mitigate the chances.
Efficiencies are a big part of our world today, however personally I don’t believe the financial outcomes should be the most important. More emphasis could be placed on what’s best for people and the surrounding area and not the bottom line. There are more, but this ends my “sermon” for tonight…. ;-)

[kato]

I agree with that totally. I've seen empty shelves in stores. I remember a blizzard when I was a kid that had grocery stores in Winnipeg out of bread and milk within hours, and other stuff ran real low real fast, because it took at least four or five days to restock them. My Mom sent me and my sister to the store right after the storm quit, because she knew this would happen. We literally walked over cars. Only kids could make it because they floated on the snow! Nowadays people have even less food on hand than they did back then.

Food security is the most important kind of security there is. Lose it, and you lose everything if something ever goes wrong. Things can get pretty ugly when there is nothing to eat.

[grassfarmer]

How does having producer owned packing plants keep the store shelves stocked after a blizzard or diesel shortage?