Plants for Culls

[pandiana]

More and more we are coming around to testing all older cows. However, testing is one thing but its another to pull out of thin air enough kill capacity to handle this number in the short term. It is obviously not profitable for the big existing plants or they would be doing more and paying more for it. It will take time to develope markets in order to sell this 'guaranteed BSE free meat'.

I talked to a person who is on the committee that is reviewing application for 5 new or refurbished plants that would kill cull cows. This person was very pessimistic that more than one or two would be approved. In order to justify 20M$ startup cost they have to show where the market for these cows would come from. Up to now, apparently we do not produce the kind of beef that is wanted in order to replace the imported beef that is now coming into Canada. Probably price has something to do with it too, I don't know. Maybe value-chain can enlighten us a little more.

[ValueChainFX]

Just a short note in answer, I believe there is a good portion of what is being imported that our Canadian Cull cows could fill (price does have something to do with it, but we wouldn't complain if they paid us what the importers got, it's better than paying to sell them at the sale yard!). Marketers are telling me the same thing! We just reviewed an application for government funding, and they still are living in their world of beauracracy and BS! They not only want you to tell them all the information like where the markets are, but who the marketers are going to be, individual customers (with signed letters of commitment), how many animals are in our Canadian live inventory and on and on and on! (makes me wonder what they have been spending the so called money for agriculture on!) They have studied things to death and when a producer group comes to them, they send you to a consulting company that charges to much, delivers only what the government wants to hear and the trough gets deeper!

As I have said many times before we cannot count on government, the producers need to step up to the plate and swallow a lump of independence. I believe the producers can do it as they pretty much have to at this point. Now is a good time with the public more on our side than ever. A "Rural Rennacance" that will work for the primary producers and maybe hold some of these government dudes accountable. As far as opening the old plants I would say that you would need to build new to build in the components to meet the regulations of today and the ones we see coming in tomorrow! We need Federal kill capacity but it needs to go hand in hand so the producer gets a bigger slice of the pie!

I still believe the producers can make some gains but not by being the loneranger and not by depending on government but by doing what producers do best, build it from the ground up and make it work! If I sound a little POed probably cause I am, the time to act is now, no more fence sitting!

[Junebug]

Since there seems to be No Canadian Dog Food. Why can't we market these cull cows for pet food. It would be high quality at that.

[gwf]

Does anyone have any idea of what it costs to build a 500 to 700 head a day slaughtering plant?

[pandiana]

The figure I keep hearing is a minimum of $20 million. ValueChain would be the expert.

[ValueChainFX]

gwf calculate the building at $200.00 a square foot!

[ValueChainFX]

Building a single plant to handle all the cull cows in my opinion will do little for the primary producer!

The concept of building smaller plants in the rural areas that are networked together makes more sense! We have had the experts tell us that the plants need to be in the big city where the infrastructure is! Well the infrastructure is there because they took it out of the rural areas to start with!

Smaller Federal plants strategically placed would give the primary producer more access to kill spots not only for cull cows but also for other cattle as well! This would give the primary producer access to markets outside the province!

A plant that can kill about 12 head an hour would cost around 2.2 ML. Putting up a building is a small part of the challenge! Making the complex systems including regulations, marketing, testing, etc. come together are the bigger side of the challenge. You can find all kinds of questions to be for building smaller plants or against smaller plants! I still believe the producer will be the one at the end of the day to figure out that they will be the ones to make it happen. It makes more sense to build infrastructure back into the rural communities and stand behind your products than ship your live animals to the city.

[boone]

Value chnfx, sorry but Saskatchewan only does mega projects, Co-op upgrader,(Regina), Saskferco, stones throw (Regina), Light source (Saskatoon), Husky upgrader (Lloydminister) Pulp mill stones throw (Prince Albert) Cargill crusher (Saskatoon) Gainers (North Battleford)so here's the deal you get us the plant around Regina and we deliver a considerably educated group of workers when we erase the provincial border with Alberta. We will have to dress up the lunch rooms for our workers as they are used to expense accounts.lol

[cowman]

It makes more sense to me to have more smaller plants that do a lot more processing that these huge American kill plants. Fine to keep the big plants that kill the young stuff but wouldn't it make more sense to have 2 or 3 cow type plants in each province?
If we go to a mega cow plant we all know where it will be built? Alberta. So how does that help the guy in Manitoba? The freight would kill them?
I wrote a while back about how my neighbor got a first calf heifer butchered and how he got $1150 worth of meat from her after deducting all cutting costs? Well he recently had an old 12 year old cow done. Had her made up into farmer sausage and jerky. He knows just about everybody around and he has pretty well peddled it all off. Says he should net close to $1500!!! And he said the processing fees were a scandal!

[gwf]

Thanks for the response on this topic.

I was not thinking of a plant for cull cows. There is only one place for all animals that were born prior to 1998, and that is not a packing plant. The beef industry is in a very dire straight and is facing a milestone in its survival. We are seeing the ripple effect throughout the whole agricultural sector including towns, municipalities and counties. The recovery becomes everyone’s business and it has moved beyond each agricultural sector wanting a leg up on the other. The science of BSE with all of the related health issues directly and indirectly is loosing its momentum. In my opinion, all animal by-products should be removed from the food chain. If Mark Purdey’s theory is right, it doesn’t take much effort to have your soil and feed tested to ensure that the livestock are not being deprived of essential nutrients. This is a no brainer. If there was total agreement with the science, it would go a long way in reassuring the food safety to our export customers and to the public, but there does not seem to be agreement.

I am getting a little tired or hearing that our beef is safe. It might be, and I am sure it is, but I am not convinced it is as safe as it could be.

In Canada, we slaughter about 9,300 head of cattle a day, we consume about 5,500, and we have to export about 3,900. We have to find new markets for our beef. If the US border were open today, we would still be faced with the reality that the US has been shutout of their traditional export markets and they really don’t need our beef.

[ValueChainFX]

Cowman, we recently opened a small custom cutting shop for a producer. The idea was to show proof of delivery and put some of these producers’ animals through the shop. We have for the past two months been doing cutting tests and setting up programs that could be used for the primary producer, the story you tell of the cow above, is very very true. We have done the same with several bulls now and some cull cows. Also we have offered a select few customers, special cuts (basically cuts that have been trimmed or cut to meet the needs of the customer) and have found these customers to be totally open to paying for the extra effort. As the customer has said they may pay more up front, but their costs have been reduced since they use the products they buy! The only challenge we have is this small cutting facility has to rely on custom killing and we do not have the room or the time to cut for everyone. We have product coming from all over the province and outside interest for product as far away as Quebec. The shop has been open for a couple of months and has been a six-day a week operation with an average of I would guess about 10 hours a day! Processing fees are a scandal especially when much of the processing is not done the way it should be. Our customers have rightly pointed out that the product they are getting processed, once compared to the way we process shows much room for improvement! I am trying to point out the opportunity we have and not looking for more customers here. My suggestion is that if we begin to build a foundation built on a total system, we can put our product on a higher level than the "commodity product"! A commodity product to me is just the easiest way to push it down an assembly line!

[cakadu]

We have been working with a small processor for years now and he cuts our meat the way we want it done because it is filling custom orders for clients.

You don't really need to build new facilities and such, what could make this possible for others is to establish rapport and a good working relationship with your local processor. Granted, we can't go out of the province, but we don't want to at this point in time.

Having a market focus versus a production focus is what direct marketing is all about - filling orders for customers who are willing to pay you for your product and the extra effort that you put into it. The other thing that goes along with it is that the product has to be consistent. It doesn't do you much good to fill orders one time. Repeat business is what is important.

We know how we grow our product and what goes into it and based on that, our customers are willing to pay.

[cowman]

My neighbor says " Where is the crisis? Now I'm getting more for my product than I ever was before?" And this is a fact! Now mind you he has to get out and sell it! But the fact is every old cow sold is still making someone a lot of money! Maybe more money than ever before?
Valuechain knows this. And he has the right idea! We aren't all born salesmen like my neighbor or we don't have the time to do this!
GWF: I do understand your concern when you quote the figures where will all this beef go. The ugly fact is we have been over producing for an export market that is not going to be sustainable. About 25% of us are going to have to go! Sad but true.
I don't say that lightly or flippantly and Lord knows I'll probably be one of them! That's just how it is.

[cakadu]

Necessity is the mother of invention and this situation is no different. Actually, it probably has a silver lining for some folks like your neighbor cowman who may never have tried had he not been forced to do so by the current situation.

What helps to sell this idea are people like him who now see some benefit and success to it. Granted, we are not all cut out to do the leg work and selling, but you can work in small groups with people who can sell. It might not work for all of his production, but it gives another avenue and another income stream that wasn't necessarily there before.

That is what value-adding is about - finding the market and giving that market what it wants. You don't have to conquer the world - just rock your own!

[StrawBoss]

I have a few questions, are all these old cows tested for BSE and government inspected that these guys are peddling around the neighborhood? Just because he’s your friend, neighbor and a good guy doesn’t guarantee it’s safe --- but one could say we never tested in the good old days and we are still around. ( I suppose these old critters probably only were feed hay and grain, but how about mineral blocks?)

Value chain is all the meat you process for others government inspected before it inters your plant? I am sure it’s not tested for BSE or is it? ( I don’t want to be negative just curious ) Also any labour problems? I know in my small business it was a problem at times, especially when you had commitments and needed the people to work a few extra hours.