Class action in Quebec

[shtferbrains]

Class action in Quebec by retailers against packers

"The claims lack merit,” Cargill spokeswoman April Nelson wrote in an email.

“We compete vigorously in the market and conduct ethical business, and we are confident in our efforts to maintain market integrity on behalf of our customers and consumers.”


I assume part of the case will be they are taking a much larger share than they traditionaly have?

[woodland]

I couldn’t afford to eat what I produce if I had to buy it at the store………. Kinda sad really. The “value” chain is broken and I wish it could be fixed. If things are dry this year the packers will be running flat out to get rid of the cows that nobody will want. The next few months weather will determine the future of a lot of cows. Interesting and turbulent times currently and ahead.

Still love having the cows here most days😉

[The Don]

What do you think the end game is here?
The Retailers buy and sell on a margin. Do they feel that they could get a bigger share if the Packers would give them better pricing?
One thing that I'm wondering about now is how they are going to drag this cost out of the cow-calf operators?

[Blaithin]

Another part of the discussion I was having recently is feedlots importing American calves.

Now I’m not talking a load or pen here and there crossing the border. That works both ways. But I know several lots that are 100% dairy animals, primarily born in southern states like Texas. The supply chain is apparently born in Texas, shipped half way here to bottle feed, weaned at 3 months and shipped here for finishing (Hello COOL, wouldn’t you be easy!)

Now I understand dairy calves in Texas are pretty much worthless. I also understand feedlots are also a victim of what packers are paying for a finished animal so this is a way to try and increase their margins.

But still, how can $25 dairy calves being imported from almost 3000 km away make sense. All that does is help drive down beef demand and prices here for the cow calf farms. Low prices, held there for the variety of reasons including high grain, low packer prices, and cheaper options, combined with drought, rents, feed costs… of course farms are getting out! It’s like these lots aren’t playing a long game, because the way it’s going they may have to rely on American dairy calves in the not too distant future. The beef herd here will be minuscule.

[AlbertaFarmer5]

Another part of the discussion I was having recently is feedlots importing American calves.

Now I’m not talking a load or pen here and there crossing the border. That works both ways. But I know several lots that are 100% dairy animals, primarily born in southern states like Texas. The supply chain is apparently born in Texas, shipped half way here to bottle feed, weaned at 3 months and shipped here for finishing (Hello COOL, wouldn’t you be easy!)

Now I understand dairy calves in Texas are pretty much worthless. I also understand feedlots are also a victim of what packers are paying for a finished animal so this is a way to try and increase their margins.

But still, how can $25 dairy calves being imported from almost 3000 km away make sense. All that does is help drive down beef demand and prices here for the cow calf farms. Low prices, held there for the variety of reasons including high grain, low packer prices, and cheaper options, combined with drought, rents, feed costs… of course farms are getting out! It’s like these lots aren’t playing a long game, because the way it’s going they may have to rely on American dairy calves in the not too distant future. The beef herd here will be minuscule.

And what does this do for the reputation of Alberta beef? Is beef from holsteins comparable to beef calves, or is this diluting our quality and reputation?

[Blaithin]

And what does this do for the reputation of Alberta beef? Is beef from holsteins comparable to beef calves, or is this diluting our quality and reputation?

I wouldn’t be too worried about the beef reputation. Beef is all graded at slaughter, if the Holsteins don’t grade then they don’t grade, they aren’t going to be sold and marketed as top grade if they aren’t. Plus there isn’t a lot of reason a young, fat, finished Holstein wouldn't grade. They just take longer to get there.

That said, there’s plenty of Alberta, and Canadian, Holsteins and dairy calves that can be fed out. They just most likely cost more than American ones.

[The Don]

In Canada, where there is no mandatory price reporting the numbers can be made into what ever you want.
Who owns the information can make the numbers suit what ever point they want to.
My opinion is that the Retailers don't have much of a chance of getting money from the Packers. If they do get something it will be via a settlement with little or no disclosure. That will be an attempt by the Packers to keep the "Family" happy.
The biggest user of sexed Beef cattle semen in the US is the Dairy Industry. That is the future of the cattle industry. Especially in Canada. The straight dairy cattle take a lot longer to finish and it seems that the Feed lots and Packers are willing to pay for that inefficiency. They take those increased costs off what they pay for Canadian beef cattle so they aren't losing money.
There is more to the story in the fact that the Dairy cattle have a different disease load than pasture raised cattle. Those diseases will start to become evident soon and may become a game changer.
The Big Money Dairy's are going to face some Big challenges in the next 10 years. Drought and water access is going to be one of the problems. Pumping water onto alfalfa in the desert may not be sustainable.