Corporations

[cowman]

Strawboss: I have a few disagreements?
First of all: Cargill and IBPs main intent is to maximize profits. This whole situation has been a boon for them. Their Canadian divisions have never done better than these last eight months or so. Why would they want the border open? So their sister plants and the competition in the States could bid the price up? No they are quite happy right now taking a $500 profit on every steer they slaughter. Basic business reality.
Perhaps your solutions have some merit but I do see some problems. You say we should feed our cattle out to slaughter weight and therefore profit from the extra income. What extra income is that? The feedlots are going broke too! Why do you think we have the system today that we have? Once upon a time we all did feed our animals to slaughter weight. The present system is in fact more efficient. I will agree this has created animal health concerns and environmental concerns but I never saw anyone standing up and saying they were willing to pay more to not have this happen? And that includes the government, the consumer and the environmentalist?
I am sure you also realize that the farmer population is now fairly old? I believe in that 58 range? Are all us old farmers going to go out and invest the money needed to feed our cattle out to slaughter weight? And either do the extra work or hire help? So we can lose some more money? Not going to happen.
I do believe Valuechain has the right idea and I believe some people are slowly coming around to his way of thinking. Now whether they have the money or the energy to pursue this is another question. Perhaps the young ones who have another thirty years to invest, in this, will?
But your ideas are good ones as they should motivate people to ask themselves where do I want to go with this whole thing. Chuck it or make a long term committment.

[ValueChainFX]

Balance in the system is what we are looking for, the small plants will never go head to head with the big guys. If the small plants have a minimum number to stay open when the big guys are paying good dollars that is part of the function of the small plant. Get the prices up and stabalize a foundation income for the producers. As long as you balance the support, you can take advantage of when the higher prices are paid as well!
I suspect however, the smaller plants, with a trained staff will be able to accomplish many things the big guys just can't (or won't) do!
The big corporations have their meetings with all the plant managers together, so in Cargills case about 20 upper management from Mostly the US and Canada. They use the corporate formulas (as they should) to leverage, money, live animals, frozen product and fresh! If they exchange rate works they use that, if the price works they use that! If they can get their raw product at give away prices "Guess What" they use that!
The Canadian farmer is a corporation, they just have to start acting like one and pull together, learn the rules and build the strategy!

[rusty1]

My dad once said "he who has all the answers, dosn't know all the questions."
Grassfarmers qoute "These crooks should be run out of business - and you can be sure Cargill and Tyson are actively urging the US Government to keep the border closed." These multi-national (can't believe we put national in that phrase) corporations regulary rotate top ranking exec's through the USDA.
Those corporations get there through "situational ethics" called greasing palms. It's time producers woke up. Do the math all the packers need to controll the whole marked is about 15 to 20% of the cattle on feed at the right time to control things. Then the converse is also true, if producers united with around 20% of the cattle on feed, guess what..........

[rusty1]

I forgot to add. The packers sales are made months in advance, so they no exactly how big of a pipe they have to fill and when.

I'm tired of being a mushroom.

[cowman]

IBP and Cargill are pretty tough companies who use their power and influence to profit excessively from the marketplace. I don't want to imply that they are evil just because they are American companies. Canada Packers used a lot of the same tactics. Owning cattle, contracting cattle etc. to lower the market price. Lakeside packers was even sleazier, so much so, that when IBP bought them they retained just about all the management team! The people who ran CP in Red Deer went enmasse to the new Cargill plant.
Meat Packing is a dirty business. So many times their practices border on illegal. Check out how many times Cargill and IBP have been charged with crimes in the US! It is like they are in court just about everyday of the year! Do some research on Tyson(IBP owner)...not a very nice guy?

[rusty1]

Check out http://www.maverickranch.com/index.htm

[rusty1]

This is a must read http://www.nobull.net/legal/mission.htm

Mike Callicrate is a feedlot oporater from Kansas who has gathered a group of producers around him and are taking Tyson to court for obvious reasons. We heard him in Lethbridge a years ago. If I remember right he said that if you do the math, all a packer need to own to controll the market is around 20% of the cattle. The packers read their need by long forcasts on need by a large segment of the retail trade. Therefore they know well in advance of when they are going to need product. Therefore they also know when they need ot have their supply available and priced. Therefore all they need to contol the market is around 20% of the feed cattle at the right time.
They feel very strong that they will be winning this case because this time they are going to the jury decision process. People of the stree will decide if there has been collusion.