Over 30 month kill capacity just bottomed out

[pandiana]

Could this be the reason for the precipitous drop in over 30 month cull cows and bulls within the last week? I haven't heard any talk of this in the media or forums.


"Subject: BSE UPDATE - for circulation within industry - not for publication
in magazines or newsletters
Importance: High


The Canadian Food Inspection Agency has reached clarification with the USDA
that trim is permitted to be exported to the U.S., as is boneless veal.

Plants that export beef from cattle under 30 months are presently not
permitted to also kill mature animals. This issue will be further
negotiated to determine if these plants could get permission to kill mature
animals one day a week.

There is a question whether "stand alone" plants, or plants that fabricate
but do not kill, are permitted to export. Further clarification is being
sought.

Cindy McCreath
Communications Manager"

[rsomer]

The Boxed Beef Report had similar information. There is confusion on which products are eligible for export and which slaughter plants are eligible for export. Plants that choose to export will be only able to intentionally slaughter animals under 30 months of age. They will not be able to slaughter animals over 30 months of age in the same facility.

Gross margins for the packers last week were $350 per head. Before BSE a typical gross margin was $150.

Not being able to slaughter cows in the same plant as calves might explain the drop in cow prices. It doesn’t explain the reluctance of packers to bid on calves, given the generous profits they are enjoying.

I don’t think we can rule out the possibility that the packers are squeezing the market in retaliation for the federal government asking to see their financial records.

[pandiana]

I understood Lakeside was killing cows one day a week?