Well I spent all my summers from 12-20 around Diefenbacker so not sure about the civilization part-if you did draw a circle where the middle of the cattle are it would probably surprise alot of people.
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Just a couple of questions about packing plant location?
Who in their right mind would build a packing plant in Saskatchewan or Manitoba?....The people there keep electing dingbat commie governments! Not exactly pro-free enterprize, right?
There is a reason the packing plants and feedlots were built in Alberta...it's called the proper business climate???
But then the "proposed" plants aren't really a business right? In reality they are a co-op type of deal financed by government money? And oh, those are really sucessful right? Sask Pool, Alberta wheat pool, Manitoba wheat pool?
Make no mistake, Cargill and IBP are pirates, but one thing you have to admit is they know how to make a buck! They didn't get that big by playing fair or kissing some governments butt! They come to play hardball and they come to win!
How long do you think it would take them to run a newcomer out of business? They tolerate Neilsons because they don't really want the garbage cattle business...and probably because Neilsons are just about as ruthless!
Now I'm sure we are all people of high principal here who would support our own plant, but lets face it we are mostly cow/calf and we don't dictate to the Cor van Rays, or Rick Pascals where they sell their cattle? And these men are business men who will sell to the highest bidder...and that is how it should be?...its called free enterprize?
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Its called vertical integration. Cor van Ray is rumoured to be an investor in the proposed plant at Calgary and sees the need to vertically integrate up the value chain. It is pretty likely he will be selling his cattle into the plant he has an ownership share in. The Pool elevators were very successful for over two generations until the people forgot why they were built in the first place. Actually the grain business was ruthless too but these producer organizations were able to be very successful largely because once the producers had a choice of where to deal they refused to deal with the pirate companies. The producer plants can be viable, they may not all be, but their time has come and the longer the border remains closed the more people will come to see that. There are real advantages to a beef producer like Cor van Ray and even a little producer like me to vertically integrate into the processing sector. Those advantages form part of the competitive advantage the producer plants will need to survive amongst the pirates.
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The most interesting conversation you will have is with an Alberta rancher explaining how the government help he receives isn't actually a subsidy and how the extra cash doesn't make a difference-they squirm worse than a worm on a hook. I think it was in 2002-Uncle Ralph stroked them a big cheque just before haying-they were in our country like locusts buying up all the standing crop. So get off your little pedastal Cowman your government is just as socialist with conservative colours-You take away the oil revenue etc and we can compete with any of you.
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reading the above threads I can"t help but think One big plant would just put a big bullseye on you it is alot easier to chop one big tree down than 100 mid sized ones. You need areas with lots of quality water power and a good access to cattle and human populations. I believe midsize plants spread out across Canada are better perhaps in a co-op form of some kind. Bigger is not always better I for one would also like to see a big plant go into production and give the big boys a good knock out punch. But is alot easier said than done. Midsized plants spread out would reduce shipping and specialize in what ever the area has to offer. (Fats, young cows, old cows, bulls etc) The large companies already have a market established so we must find our own markets so we must have to the ability to adapt to differnt markets as we find them. Look at the problems the Americans are having in that war they started. The little terrorist groups are raisng havoc because they are small and adaptable. This is how I see this situation we are in the big plants. Just my opinion.
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